Shin Chang-jae, Chairman of Kyobo Life Insurance, Selected as Inaugural Recipient of 'Ethical Management Award' at Geneva Forum

Emphasis on Ethical Management Since Appointment as Representative in 2000

Shin Chang-jae, CEO and Chairman of Kyobo Life Insurance, has been recognized as a model case of ethical management in the international community for over 20 years.

On the 27th of last month (local time), Chairman Shin received the "Global Ethics & Stakeholder Commitment Award" at the "2024 Geneva Entrepreneurship Forum" held at the International Labour Organization (ILO) headquarters in Geneva, Switzerland.

This award was established at the Geneva Entrepreneurship Forum, organized by international organizations including the International Council for Small Business (ICSB), ILO, United Nations Conference on Trade and Development (UNCTAD), and International Trade Centre (ITC), in celebration of the United Nations-designated World Small and Medium Enterprises Day. It is presented to global entrepreneurs who have pursued social justice, a new agenda proposed by the ILO, by practicing ethical management and stakeholder-centered management. After nominations from various countries and evaluations by a panel of judges, Chairman Shin was selected as the inaugural recipient.

Shin Chang-jae, CEO and Chairman of the Board of Directors at Kyobo Life Insurance.

Winslow Sargent, former ICSB chairman and chair of the judging panel, said, "Chairman Shin has led stakeholder-centered management that promotes the development of all stakeholders?including customers, insurance planners, employees, shareholders, local communities, and governments?based on a global-level philosophy of ethical management for the past 24 years, taking the lead in pursuing social justice. His exemplary leadership provides great inspiration to global entrepreneurs who must take the lead in solving humanity’s pressing problems."

At the award ceremony held at the ILO headquarters, Chairman Shin shared a video message, stating, "Since I took office as CEO in 2000, I have been improving improper sales practices and promoting customer-centered honest sales, which gradually opened my eyes to ethical management for all stakeholders. This naturally led me to take an interest in stakeholder-centered management. I am convinced that going beyond passive ethical management that simply complies with laws and regulations to active ethical management that benefits all stakeholders is the path for companies to achieve greater success."

Chairman Shin has a unique background, having transformed from a medical school professor who helped bring life into the world to the CEO of an insurance company. When he assumed the CEO position in 2000, Kyobo Life Insurance was facing a major crisis due to the aftermath of the foreign exchange crisis, including significant asset losses and improper sales practices. Immediately after taking office, he declared the "Kyobo People’s Code of Ethics," positioning honest sales and ethical management as the starting point for innovation necessary for survival. In 2004, to accelerate the practice of ethical management, the "Kyobo People’s Code of Conduct" was introduced, and in 2006, Kyobo Life became the first private company to implement the "Job Integrity Contract System."

In 2003, the Shin family paid the largest inheritance tax at the time, amounting to 183 billion KRW. The founding principle of Kyobo Life’s founder, Shin Yong-ho, that "there is no free lunch or secret in the world," has been inherited as the core value of "honesty and sincerity" by his son, Chairman Shin, and is credited as the foundation of today’s ethical management corporate culture.

The YoonKyung ESG Forum, the longest-running private forum in Korea, invited Chairman Shin as the keynote speaker last year on its 20th anniversary to hear about his philosophy of ethical management. At the event, Chairman Shin candidly shared, "The path of ethical management is truly a lonely and difficult process." He explained that when comparing company performances, companies that inflate their results may have an advantage, so from a market competition perspective, it often feels like running with a sandbag tied to one’s leg.

Chairman Shin insists on ethical management because he believes that absolute honesty must be maintained with stakeholders such as customers, employees, and shareholders. He said, "Obsessing over short-term profits by inflating performance is no different from deceiving stakeholders like shareholders and consumers. I didn’t fully understand this at first, but after managing an insurance company for over 20 years and knowing the insurance business better than anyone else, I realized that I simply cannot lie."

Government-related agencies and the industry also highly evaluate Chairman Shin’s ethical management. Regarding this award, Ko Seung-beom, former chairman of the Financial Services Commission and chairman of the Youth Financial Education Council, said, "Kyobo Life Insurance is a model company practicing global-level ethical management among domestic companies. Ethical management enhances customer trust, which leads to industry development and consumer protection, so the government and financial sector need to further support and encourage companies’ efforts in ethical management." Kim Cheol-ju, chairman of the Life Insurance Association, commented, "Chairman Shin’s ethical management, which defines life insurance as finance based on the spirit of love and has long been dedicated to customer care, serves as a great example for insurance professionals. We expect this award to be an important opportunity to further raise customer trust in the domestic life insurance industry."