MG Insurance Union: "Pushing Contract Transfer for End-of-Term Achievements... Must Stop Immediately"

MG Insurance Union Holds General Strike Resolution Rally in Front of Financial Services Commission on the 29th
"Stop Establishing Bridge Insurance Company and Proceed with Normal Sale"
Tongyang Life and ABL Life Unions Also Protested at Woori Financial Group on the 26th

"Stop establishing the bridge insurance company and proceed with a normal sale."

On the afternoon of the 29th, about 400 executives and employees of the MG Insurance Branch of the National Office Finance Service Labor Union held a general strike resolution rally in front of the Financial Services Commission in Jongno-gu, Seoul. They protested by holding placards criticizing the financial authorities, who have imposed a business suspension on MG Insurance and are pushing for a transfer of contracts. Lee Donghyun, Senior Vice Branch Chief of the MG Insurance labor union, strongly criticized, "The government does not care about the lives of workers and is only interested in its own achievements," and insisted, "The business suspension, which ignores the right to livelihood of all employees, must be immediately withdrawn."

On May 14, the Financial Services Commission decided to partially suspend MG Insurance's business, including prohibiting new insurance contracts. This measure was taken to promote the transfer of contracts for MG Insurance, which faces liquidation due to repeated failed sales and mounting losses. The justification is to protect 1.21 million policyholders by having five major non-life insurance companies (Samsung, DB, Meritz, Hyundai, and KB) take over MG Insurance's existing insurance contracts. To this end, the Korea Deposit Insurance Corporation and the five insurers launched a joint management council the previous day to operate a bridge insurance company.

MG Insurance Union: "Pushing Contract Transfer for End-of-Term Achievements... Must Stop Immediately"

The MG Insurance labor union criticized the authorities, demanding a complete halt to the contract transfer process. Jang Soonwon, Deputy Director in charge of the non-life insurance sector at the National Office Finance Service Labor Union, stated, "There are even rebellious elements within the Financial Services Commission," and argued, "With less than a month left until the new government is inaugurated, they are rushing the contract transfer for their own achievements, with no regard for workers' right to livelihood."

The union has stated that if the authorities do not stop the contract transfer process, they may launch a general strike depending on the situation. Kim Youngjae, Policy Director of the National Office Finance Service Labor Union, said, "Once the new government is inaugurated and a new chairman of the Financial Services Commission is appointed, another company that needs a non-life insurer may emerge. For now, we will monitor the situation until June, and if the authorities' stance does not change, we may proceed with a general strike."

Recently, amid the presidential election season, labor union activities in the insurance industry have been intensifying. On May 26, about 100 union members from Tongyang Life and ABL Life also held a joint resolution rally in front of the headquarters of Woori Financial Group. The reason is that although Woori Financial Group is accelerating the acquisition of the two companies, it has been passive in negotiations with the unions demanding job security.

Union members from Tongyang Life and ABL Life are demanding both employment succession and severance payments of up to 1,200% of their base salary. In response, Woori Financial Group has stated that since the two companies have not yet been officially incorporated as subsidiaries, discussions can only take place after the shareholders' meeting scheduled for July. The unions of Tongyang Life and ABL Life also plan to hold a general assembly of union members in front of the Woori Financial Group headquarters on June 2.