Seminar Held on Revitalizing Productive Finance in the Insurance Industry
The Life Insurance Association announced on December 2 that it held the "Insurance Industry Productive Finance Activation Seminar" together with the General Insurance Association, where they explored the roles the insurance industry should play and discussed tasks to promote future investment.
The seminar, which took place at 3 p.m. at the Life Insurance Education and Culture Center in Jongno-gu, Seoul, was attended by Cheolju Kim, Chairman of the Life Insurance Association, Byeongrae Lee, Chairman of the General Insurance Association, and others. The event featured keynote presentations by Jaeseok Lee, Executive Director of Samjong KPMG, and Geonyeop Noh, Director of the Insurance Research Institute, as well as a panel discussion moderated by Kyunghee Lee, Professor at Sangmyung University, fostering in-depth discussions.
On the 2nd, attendees of the "Insurance Industry Productive Finance Activation Seminar" held at the Life Insurance Education and Culture Center in Jongno-gu, Seoul, are posing for a commemorative photo. (Top row from left) Hongyong Lee, Executive Director of EY Hanyoung; Jiyoung Jung, Executive Director of Shinhan Life; Hayoung Song, Executive Director of Samsung Fire & Marine Insurance; Seonjung Yoon, Professor at Dongguk University; Jihun Kim, Executive Director of the General Insurance Association. (Bottom row from left) Geonyeop Noh, Director of the Insurance Research Institute; Kyunghee Lee, Professor at Sangmyung University; Cheolju Kim, Chairman of the Life Insurance Association; Byeongrae Lee, Chairman of the General Insurance Association; Dongyeop Lee, Director of the Insurance Division at the Financial Services Commission; Jaeseok Lee, Executive Director of Samjong KPMG. Life Insurance Association
In his welcoming remarks, Cheolju Kim, Chairman of the Life Insurance Association, stated, "Amid the sweeping waves of low growth, population aging, and industrial transformation, long-term insurance funds must not only safeguard the retirement and security of the public, but also flow into productive investments that foster future growth engines." He proposed several measures to expand productive finance, including enhancing insurers' asset management capabilities, establishing a culture of responsible investment, formulating strategies that simultaneously pursue long-term profitability and reduced volatility, as well as bold policy support and sophisticated regulatory reforms.
Byeongrae Lee, Chairman of the General Insurance Association, said in his welcoming address, "As a stable source of long-term funds, the insurance industry must actively consider ways to support the development of future industries such as artificial intelligence (AI) and semiconductors. This seminar is a timely and important opportunity," adding, "To enable the insurance industry and the real economy to grow together through productive finance, it is essential to provide support measures such as a paradigm shift in regulatory approaches and easing of capital requirements to allow insurers greater flexibility in asset management."
Jaeseok Lee, Executive Director of Samjong KPMG, delivered the first keynote presentation on the topic of "The Role of Financial Institutions in Redirecting Capital Flows and Achieving Future Innovative Growth." He explained, "With the Korean economy facing a structural low-growth crisis, finance must transform from being a simple supplier of funds to a strategic partner that circulates and allocates productive capital," and emphasized, "By identifying growth sectors, strengthening lifecycle finance for companies, and fostering public-private cooperation, financial institutions should establish a system for circulating productive capital and reallocate capital flows toward innovative areas."
Geonyeop Noh, Director of the Insurance Research Institute, presented the second keynote on "The Role of the Insurance Industry in Expanding Productive Finance and International Case Studies." He noted, "Although the insurance industry's managed assets amount to 1,145 trillion won, structural constraints such as capital regulations and asset-liability management (ALM) remain. In contrast, major countries overseas are promoting long-term and real asset investments by insurers through revisions to international capital regulations (Solvency II) and matching adjustments." He added, "Through institutional measures such as derivative-based ALM, expanded hedge accounting, easing of policy fund capital requirements, and improved long-term equity holding requirements, the insurance industry can become a key investor contributing to the growth of the real economy."
The panel discussion, moderated by Kyunghee Lee, Professor at Sangmyung University, focused on "Strategies to Activate Productive Finance in the Insurance Industry." Experts from the Financial Services Commission, academia, the insurance industry, and asset management specialists from accounting firms participated and shared a variety of perspectives. Dongyeop Lee, Director of the Insurance Division at the Financial Services Commission, remarked, "The insurance industry should make long-term asset management a core part of a virtuous cycle between trust-based and productive finance," and added, "We will continue to refine prudential regulations so that the insurance industry, as a long-term investor, can contribute to the development of the national economy through productive finance."
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