FSS Governor Lee Chanjin Responds to 'Insurance Fraud Republic' Criticism: "Stronger Penalties and More Personnel" [2025 Audit]

Financial Supervisory Service Audit by the National Assembly Political Affairs Committee
Strengthening Cooperation with Investigative Agencies and Expanding Dedicated Departments Announced

Lee Chanjin, Governor of the Financial Supervisory Service, announced plans to strengthen penalties for insurance fraud and reorganize the organization during the Financial Supervisory Service audit held by the Political Affairs Committee at the National Assembly in Yeouido, Seoul on the 21st.

Lee Chanjin, Governor of the Financial Supervisory Service, is attending the 2025 National Assembly Political Affairs Committee audit held at the National Assembly on the 21st, responding to lawmakers' questions. Photo by Yonhap News

In response to a question from Assemblyman Kim Sanghoon of the People Power Party, Governor Lee said, "I agree that the current penalties for insurance fraud are too lenient," adding, "We will significantly overhaul related work and expand dedicated personnel."

He continued, "There have been parts where the response to insurance fraud has remained stuck in old, conventional practices," and added, "We will strengthen our cooperation system with investigative agencies and prepare effective sanction measures."

Assemblyman Kim pointed out, "Last year, the amount of insurance fraud detected reached a record high of about 1 trillion won, and the number of people caught was as many as 110,000," adding, "It is practically at the level of an 'insurance fraud republic.'"

He further stated, "Methods such as intentional collisions disguised as traffic accidents, false diagnoses by medical institutions, and collusion among insurance planners are becoming increasingly sophisticated," emphasizing, "The Financial Supervisory Service must strengthen its role as a control tower overseeing crackdowns and sanctions."

Governor Lee said, "We will strengthen cooperation with investigative agencies, centering on the dedicated insurance fraud department, and promote organizational restructuring and personnel reinforcement from the perspective of public financial welfare," adding, "We will bring about real change to eradicate insurance fraud."