Fitch praises South Korea’s transparent insurance regulations

The FSC monitors insurers' capital strength.

Fitch Ratings has viewed South Korea's regulatory environment as developed and transparent, with insurers operating under the Insurance Act and oversight by the Financial Services Commission (FSC). 

The FSC monitors insurers' capital strength and has the authority to intervene in insolvency situations. 

In 2023, the regulator implemented the IFRS 17 accounting standard alongside the Korean-Insurance Capital Standards (K-ICS), replacing the previous risk-based capital regime. 

The K-ICS framework assesses insurers' capital adequacy by applying mark-to-market valuations to their assets and liabilities.