Kyobo Life Insurance to Absorb Lifeplanet Subsidiary..."Accelerating Digital Innovation"

Merger to Be Completed in April Next Year

New Lifeplanet Division to Be Established

Kyobo Life Insurance announced on September 15 that it will merge its internet life insurance subsidiary, Kyobo Lifeplanet Life Insurance, through an absorption-type merger.

Kyobo Life Insurance headquarters building view in Gwanghwamun, Jongno-gu, Seoul. Kyobo Life Insurance

On the same day, the board of directors of Kyobo Life Insurance approved the agenda to absorb and merge the existing business and workforce of Kyobo Lifeplanet. The board of Kyobo Lifeplanet also approved the merger proposal on the same day.

Kyobo Lifeplanet, the first digital life insurance company in Korea, is a 100% subsidiary of Kyobo Life Insurance. This absorption-type merger qualifies as a 'small-scale merger,' meaning it can be approved by the board of directors instead of the shareholders’ meeting. After going through procedures such as applying for the merger approval from financial authorities, the merger is expected to be completed in April next year.

This absorption-type merger is a decision aimed at creating digital competitiveness and an innovation engine for the Kyobo Group.

A Kyobo Life Insurance representative stated, "With advancements in new technologies such as artificial intelligence (AI), the importance of large-scale investments in technology and infrastructure is increasing. We determined that bringing together our group’s capabilities to drive digital innovation, rather than operating Kyobo Lifeplanet as an independent entity, would be more effective in enhancing capital efficiency and securing competitiveness."

The introduction of the new IFRS 17 accounting standards and regulatory changes such as the new Korea Insurance Capital Standard (K-ICS) also played a role.

Kyobo Life Insurance explained that strengthened capital adequacy regulations have made it difficult for digital insurers to secure the contractual service margin (CSM) or maintain a sufficient K-ICS ratio with only short-term, low-value, or savings-type insurance products.

Kyobo Life Insurance plans to utilize the existing brand by establishing a new independent business division tentatively named 'Lifeplanet Division.' Customers of Kyobo Lifeplanet will continue to access their insurance policies and services through the existing app or website even after the merger.

A Kyobo Life Insurance representative said, "By combining Kyobo Lifeplanet’s digital expertise, innovation, and agility with Kyobo Life Insurance’s capabilities in the insurance business, we will deliver better products and services. Even during the integration process, we will ensure the contracts and services provided to current customers remain stable."

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