SK’s regulators to return KRW12.4t worth of unclaimed insurance funds

The sector is also planning to shorten the transfer process to KINFA by one year.

South Korea’s Financial Services Commission (FSC) and the insurance industry’s campaign to return unclaimed insurance money to begin in September this year.

Both institutions plan to begin returning KRW12.4t in September. Relevant policyholders will receive postal mail informing them about the remaining unclaimed insurance funds.

In 2022, the FSC and insurers returned approximately KRW3.9t in unclaimed insurance funds to policyholders. They are now preparing to send postal mail in September, notifying policyholders about the remaining KRW12.4 trillion in unclaimed insurance money.

The campaign started in 2017, resulting in over KRW16.8t being returned to policyholders in the past five years.

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In an effort to expedite the transfer process, the FSC, the insurance sector, and the Korea Inclusive Finance Agency (KINFA) are planning to shorten the period for transferring dormant insurance money to KINFA by approximately one year, starting in 2024. 

This transfer is mandated under the Microfinance Support Act as a form of contribution.

As a result, insurance companies are expected to transfer dormant insurance money to KINFA by May next year, rather than waiting until February of the following year (2025).

Once the dormant insurance money is transferred to KINFA, it can be easily traced and retrieved through KINFA's mobile app or website, along with other types of dormant financial assets.