Lee Chanjin: "Strict Action According to Law if Illegalities Found in NH Nonghyup Life Insurance Hand Cream Deal" [2025 Audit]

Lee Chanjin, FSS Chairman, Responds at National Assembly Audit
"Guidance to Improve Internal Control Weaknesses Centered on the National Agricultural Cooperative Federation"

Lee Chanjin, Chairman of the Financial Supervisory Service, stated on October 27 that an on-site inspection is currently underway at NH Nonghyup Life Insurance, and that if any illegal activities are confirmed, strict measures will be taken in accordance with relevant laws. NH Nonghyup Life Insurance is suspected of making fraudulent purchases of hand cream worth 2 billion won.

Lee Chanjin, Governor of the Financial Supervisory Service, listens to questions from lawmakers during a comprehensive audit of the Financial Services Commission and the Financial Supervisory Service at the National Assembly's Political Affairs Committee in Yeouido, Seoul on October 27, 2025. Photo by Kim Hyunmin

During the National Assembly’s Political Affairs Committee audit held that day, in response to related questions from Heo Young, a lawmaker from the Democratic Party of Korea, Chairman Lee said, “Because the suspicion of corruption is very strong, we have already conducted an on-site inspection and it is still ongoing,” adding, “If any illegal activity is confirmed, strict measures will be taken in accordance with the relevant laws.”

According to Assemblyman Heo, NH Nonghyup Life Insurance signed a private contract for hand cream worth 2.5 billion won on December 30 last year, completing the process in just two days. It was confirmed that a company called Lineplus, which has done business with Nonghyup for ten years, was responsible for the purchase and distribution of the hand cream.

The sales agent, CosmediM, was established three months prior to the contract with a capital of 10 million won. Another sales agent was the younger sister of Park, the purchasing manager at NH Nonghyup Life Insurance.

Assemblyman Heo also pointed out suspicions of embezzlement and bribery involving NH. He claimed that executives from the National Agricultural Cooperative Federation and NH Nonghyup Life Insurance were also implicated, and that embezzled cash was delivered to them. He criticized NH Nonghyup Life Insurance for failing to properly conduct an internal audit regarding these individuals.

Chairman Lee responded, “We are aware of the situation in detail, and due to the seriousness of the violations, a search and investigation are also underway. Separately from the investigative procedures, we are closely monitoring and conducting (on-site) inspections, and will take strict measures.”

He also stated that, in addition to inspecting the transaction in question, he plans to guide improvements to address deficiencies in internal controls at NH’s financial affiliates, including the National Agricultural Cooperative Federation.

He emphasized, “If we identify weaknesses in internal controls centered around the National Agricultural Cooperative Federation, we will promptly guide improvements. Any shortcomings will be supplemented through consultation with Lee Eogwon, Chairman of the Financial Services Commission.”