South Korea's Kakao clinches initial nod for digital non-life licence

The company will be granted full approval within six months once prerequisites are met.

South Korea’s Financial Services Commission (FSC) has awarded Kakao preliminary approval for a non-life insurance licence, according to media reports.

Kakao’s non-life insurance company has a $90m (KRW100b) capital, with Kakao owning 40% of the non-life insurance entity whilst its mobile payment arm Kakao Pay holds the remaining 60%. 

The company will be granted full approval within six months after it draws capital, hires staff and builds necessary infrastructure. Once approved, Kakao will be the country’s second digital-only insurer, reports said.

The digital insurer will offer platform-based self-designed insurance products, with products for social clubs, mobile phone damages, children, and Kakao Mobility-linked taxi and e-bike safety.