How South Korea insurers boost capital buffers to 206.8% in June 2025

Available capital rose to $187.6b.

South Korea’s insurance industry saw stronger capital buffers in the second quarter of 2025, according to data from the Financial Supervisory Service.

The capital adequacy ratio under the Korean Insurance Capital Standard (K-ICS), including transitional measures, stood at 206.8% at the end of June, up from 197.9% in March.

Life insurers’ ratio rose 10.2 percentage points to 200.9%, whilst non-life insurers’ ratio increased 7 percentage points to 214.7%.

Without transitional measures, the overall ratio improved to 192.1% in June from 184.2% three months earlier. Life insurers’ ratio climbed to 181.1%, whilst non-life insurers reached 207.6%.

Available capital rose to $187.6b (₩260.6t), an increase of $8.1b (₩11.3t) from March.

This was supported by net earnings of $2.8b (₩3.9t), higher accumulated other comprehensive income of $2.4b (₩3.4t) from rising interest rates, and $1.9b (₩2.6t) from new capital securities.

Required capital inched up to $90.7b (₩126t), with lapse risk increasing by $1.8b (₩2.5t) due to higher interest rates, partly offset by a $1.4b (₩2t) fall in interest rate risk.

($1.00 = ₩1,391.63)