[Infostock Daily=Reporter Park Jeong-do] Hanwha Life Insurance received a heavy penalty of "institutional warning"from the Financial Supervisory Service for violating major shareholder trading restrictions.
According to the 'Disclosure of Sanctions on Hanwha Life Insurance' released by the FSS on the 20th, the FSS imposed institutional warnings, fines of 1.834 billion won and penalties of 199.5 million won on Hanwha Life Insurance. In addition, three executives were given reprimand warnings and cautionary warnings, and nine employees were given salary cuts and reprimands.
The biggest problem was that Hanwha Life Insurance provided 8.018 billion won worth of financial profits free of charge in the process of opening Galleria duty-free shops in 2015 at the 63 building. During the sanctions review, Hanwha Life claimed to have made up for the loss by raising rents, but authorities judged that it was only a rise in rent due to inflation and caused losses to the company as a result.
Unfair transactions with subsidiaries also became a problem. In response to the inclusion of about 1.1 billion won in donations to a Hanwha-affiliated public corporation unrelated to contractual service services in the process of paying office building management fees to 63 City, which manages Hanwha Life Insurance's 63 building, the Financial Supervisory Service saw it as a violation of the Insurance Business Act, which is equivalent to the act of providing tangible and intangible assets to subsidiaries free of charge.
In addition, underpayment of about 2.1 billion won in insurance premiums for 4,734 insurance contracts, unfair termination of 18 insurance contracts and under-return of insurance premiums and failure to comply with regulations on the operation of risk managers were also caught.
With the confirmation of the heavy penalty, Hanwha Life Insurance will not be able to enter new business areas that require approval and approval from regulators for a year.
Reporter Park Jeong-do email@example.com