KDIC President: "Resolution of MG Non-Life Insurance to Cost Hundreds of Billions... Civil and Criminal Liability Possible"

In relation to the insolvency of MG Non-Life Insurance, the Korea Deposit Insurance Corporation (KDIC) has estimated that several hundred billion won will be required for the resolution and has indicated the possibility of civil and criminal lawsuits against those involved.

Yoo Jaehoon, President of the Korea Deposit Insurance Corporation. Photo by Yonhap News Agency

Yoo Jaehoon, President of the Korea Deposit Insurance Corporation, said during a presidential work report to President Lee Jaemyung at the Government Complex Seoul Annex on December 19, "If MG Non-Life Insurance's assets are insufficient prior to the transfer of contracts, the KDIC will be responsible, and we are prepared to bear a burden in the range of several hundred billion won."

In particular, when President Lee pointed out, "Is it the case that MG Non-Life Insurance can simply pass on a burden of several hundred billion won to the KDIC and walk away without any responsibility?" President Yoo responded, "The Korea Deposit Insurance Corporation has an internal function to investigate those responsible, and civil and criminal liability can be pursued."

The Korea Deposit Insurance Corporation is currently managing MG Non-Life Insurance, which has been subjected to a business suspension order. The KDIC has established a bridge insurer, Yebyeol Non-Life Insurance, and is in the process of transferring contracts to the top five non-life insurance companies (DB, Meritz, Samsung, KB, Hyundai).