[Infostock Daily= Reporter Park Sang-In] Lee Yong-woo, a lawmaker of the Democratic Party of Korea, urged the Financial Services Commission to draw a conclusion as soon as possible, citing allegations that the Financial Services Commission will not decide on Samsung Life Insurance's heavy punishment plan for nearly 10 months.
Lee Yong-woo, a member of the Financial Services Commission's parliamentary audit held at the Yeouido National Assembly in Seoul on the 6th, said, "Samsung Life Insurance's failure to receive 15 billion won in compensation from Samsung SDS in 2015 due to delay in introducing the ERP system is unfair support."
In 2015, Samsung Life signed a service worth 156.1 billion won with its affiliate Samsung SDS to introduce the ERP system, which was only completed in October 2017, six months after the contract deadline. Samsung SDS had to pay delayed compensation to Samsung Life Insurance for the delay in the system construction period, but Samsung Life did not claim delayed compensation estimated at 15 billion won.
This violates Article 111 of the Insurance Business Act, "Prohibition of the transfer of assets free of charge to major shareholders or related parties." In response, the Financial Supervisory Service's sanctions review committee decided to impose heavy penalties on Samsung Life Insurance in December last year, judging it as unfair support for its affiliates.
Rep. Lee Yong-woo said, "There was a similar issue in the 19th National Assembly," adding, "At that time, Samsung Life Insurance donated tens of billions of won to the Samsung Life Insurance Public Interest Foundation every year, which was a violation of the Insurance Business Act, or a ban on free transfer of assets."
"The case was terminated without proper disciplinary action at the time, and unfair support for Samsung Life Insurance's affiliates continues," he said adding, "The Financial Services Commission must make a decision on this issue to clear suspicions that Samsung Life Insurance will let go."
Ko Seung-beom, chairman of the Financial Services Commission, said in response, "We are not intentionally delaying it further, but we are looking at various issues because there are legal issues."
Reporter Park Sang-In si2020@infostock.co.kr
