By Anna J. Park | The Korea Times | April 13, 2022
Kakao Pay received the green light from the country’s financial authorities Wednesday to advance into the non-life insurance market.
According to the Financial Services Commission (FSC) and Kakao Pay Wednesday, the fintech company’s subsidiary, which was established last year to prepare for the digital insurance business, succeeded in gaining the necessary approval from the financial regulator to enter the local non-life insurance industry.
This is the first time that a fintech-led digital insurer has been authorized to sell insurance products in Korea.
The FSC said in a statement that the insurance subsidiary of Kakao Pay met all of the legal requirements of a new insurance business operator, including capital amount, sound business plan and other required management traits.
The firm’s capital amounts to 100 billion won ($81.4 million), 60 percent of which was funded by Kakao Pay, while the remaining 40 percent came from Kakao. The fintech insurance company is expected to open for business as early as the third quarter of this year.
After obtaining the business approval, Kakao Pay vowed to spearhead technological innovations in the country’s non-life insurance sector.
“As the country’s first fintech-led digital non-life insurer, we will pursue various innovations while lowering the entry bar for customers,” Choi Se-hoon, CEO of the insurance subsidiary of Kakao Pay, said.
Shin Won-keun, CEO of Kakao Pay, said the firm will focus on increasing benefits for consumers through the insurance business.
“Just as Kakao Pay has renewed people’s perceptions of how to view finances, the new digital non-life insurer will create a new perspective on insurance. Through the insurance business that removes any existing prejudice against the sector, the company will focus on bringing about overall changes in the industry and increase benefits for customers,” Shin said.