FSC Imposes 7 Billion Won Fine on Dongyang Life Insurance for Credit Information Act Violation

Significant Reduction from the 140 Billion Won Fine Proposed by the Financial Supervisory Service

The Financial Services Commission will impose a fine of approximately 7 billion won on Dongyang Life Insurance for violating the Credit Information Act. This is a significant reduction from the approximately 140 billion won fine initially proposed by the Financial Supervisory Service.

According to the financial industry on September 9, the Financial Services Commission held a regular meeting on this day and decided to impose a fine of 7 billion won on Dongyang Life Insurance.

Dongyang Life Insurance headquarters building. The Asia Business Daily database

It was discovered during the 2022 management review that Dongyang Life Insurance had provided personal credit information to its subsidiary insurance agency (GA) without customers’ consent. The Financial Supervisory Service viewed this as a third-party information provision under the Credit Information Act and recommended a fine of approximately 140 billion won.

However, after deliberation by the Legal Interpretation Review Committee and others, the Financial Services Commission determined that Dongyang Life Insurance’s provision of personal credit information to its subsidiary GA was an act of outsourcing work, not third-party provision. The regulator also took into account that the scope of the information leak was not large, and that certain matters did not qualify as subjects for fines.

The financial authorities will also consider ways to improve the Credit Information Act’s system for imposing fines in the future.

This content was produced with the assistance of AI translation services.