FSS hosts Vietnam, Indonesia insurance regulators to support Korean firms abroad

The Financial Supervisory Service's Financial Hub Support Center hosted a seminar Wednesday for licensing officials from the insurance regulators of Vietnam and Indonesia, as part of efforts to support South Korean insurers operating abroad.

The seminar was held in the ninth-floor conference room at the FSS headquarters in Yeouido, Seoul. Two officials from Vietnam's Insurance Supervisory Authority, including a department head, and three from Indonesia's Financial Services Authority, known as OJK, presented at the event. About 50 people attended, including executives and staff from the Korea Life Insurance Association, the General Insurance Association of Korea, the Insurance Development Institute and various insurance companies.

Both countries are major destinations for South Korean insurers and are considered markets with strong growth potential in the insurance sector. As of the end of June, eight South Korean insurers — including Hanwha Life Insurance and DB Insurance — were operating in Vietnam, while seven, including Hanwha Life and Samsung Fire, were active in Indonesia.

In his welcoming remarks, FSS Senior Deputy Governor Lee Se-hun said the agency would "actively support Korean insurers so they can comply with local laws and regulations, contribute to the growth of both countries' insurance markets, and achieve stable growth."

Vietnam's ISA outlined the key elements of the government's "Insurance Market Development Strategy 2030," which targets average annual growth of 10 percent in the insurance market and a premium-to-GDP ratio of 3.3 to 3.5 percent by 2030. Officials also explained changes to the supervisory framework — including the planned introduction of a risk-based capital regime — as well as licensing procedures for foreign insurers and proposals to strengthen regulatory cooperation between South Korea and Vietnam. Vietnam plans to implement the risk-based capital system and the Own Risk and Solvency Assessment framework starting in 2028, with a three-year transition period.

Indonesia's OJK presented an overview of the local insurance market and its growth potential, and briefed attendees on market-entry regulations including foreign ownership limits, minimum capital requirements and licensing procedures. Officials also shared updates on regulatory reforms that could affect foreign insurers operating locally, such as tighter capital requirements for insurers, a mandatory financial holding company structure and an integrated supervisory framework for financial groups.

The mandatory financial holding company requirement applies to groups whose member companies hold combined assets of 100 trillion rupiah or more and where at least two members operate in at least two financial sectors. It also applies to groups with combined assets of between 20 trillion and 100 trillion rupiah where at least three members operate in at least three financial sectors.

After the seminar, the FSS held working-level meetings with regulators from both countries to exchange experiences on insurance supervisory systems and practices. The agency also conveyed difficulties and requests raised by South Korean insurers regarding licensing and local operations, and asked for close cooperation in resolving them.

An FSS official said the agency plans to "continue expanding exchanges and cooperation with regulators in countries where demand from Korean financial firms is high, and to hold invitation seminars and other events to provide ongoing support for Korean financial firms' smooth overseas expansion and stable local operations."