Lotte Insurance Submits Management Improvement Plan to Regulators...Includes Stake Sale Plan

Financial Services Commission to Decide on Approval Within One Month

Lotte Insurance announced on the 4th that it had submitted a management improvement plan on April 30 in response to the Prompt Corrective Action taken by the financial authorities.

Lotte Insurance Headquarters, Jung-gu, Seoul. Lotte Insurance

A representative from Lotte Insurance stated, "We have submitted a management improvement plan to enhance capital adequacy, which includes measures such as reducing operating expenses, disposing of non-performing assets, improving workforce and organizational management, increasing capital, as well as establishing plans for merger, conversion to a subsidiary of a financial holding company, acquisition by a third party, or transfer of all or part of the business."

The Financial Services Commission is expected to decide within a month whether to approve the management improvement plan.

Previously, on March 4, the Financial Services Commission decided to issue a "management improvement demand" to Lotte Insurance at its regular meeting.

After receiving a "management improvement recommendation" in November last year, Lotte Insurance submitted a management improvement plan, but it was not approved due to a lack of specificity and feasibility, which resulted in the company being moved up one stage in the Prompt Corrective Action process.

An official from the Financial Services Commission said, "We will closely review the management improvement plan submitted by Lotte Insurance this time."

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