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Photo courtesy of Lotte Insurance |
[Alpha Biz= Kim Jisun] SEOUL, November 11, 2025 — Lotte Insurance Co. announced it will take legal action against South Korea’s financial regulators over the “prompt corrective action” imposed earlier this month, arguing that the measure was based on unfair and inconsistent evaluation standards.
The company’s board of directors convened an extraordinary meeting on November 11 and approved filing both an injunction to suspend the enforcement of the Financial Services Commission’s (FSC) corrective order and a main administrative lawsuit with the Seoul Administrative Court. The firm has appointed Kim & Chang as its legal representative.
The dispute stems from the FSC’s management improvement recommendation issued on November 5, citing weak capital adequacy at the insurer. The decision followed a Financial Supervisory Service (FSS) evaluation last year that rated Lotte Insurance’s overall management as Grade 3 (Fair) and its capital adequacy as Grade 4 (Weak).
Lotte Insurance contends that the regulators’ criticism over its deferral of the Own Risk and Solvency Assessment (ORSA) is inconsistent with supervisory rules, noting the deferral was lawfully approved by its board under the Insurance Business Supervision Regulations. The company said it met objective financial indicators, and imposing a corrective action based solely on qualitative assessment was “unprecedented and unjust.”
If the court grants the injunction, the FSC’s corrective order will be suspended pending a ruling on the main case, allowing the insurer to continue normal operations. If rejected, the company must submit a capital and management improvement plan within two months and implement corrective measures within a year.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
