Financial Services Commission Chairman Lee Eog-weon, right, speaks during a meeting on eradicating illegal private lending at the Seoul Financial Welfare Counseling Center office in Seoul, Monday. Yonhap
Starting in 2026, policyholders will be able to receive death benefits from whole life insurance policies in the form of monthly annuity payments during their lifetime to support retirement, while residents in areas without bank branches will be able to access banking services through post offices, the Financial Services Commission (FSC) said Tuesday.
The measures are part of a package of financial system changes set to take effect at the start of the year. The country’s top financial regulator said its policy will focus on four priorities — channeling funds toward productive sectors; enhancing fairness and transparency in capital markets; reducing financial burdens on households while strengthening consumer protection; and expanding financial services that support everyday life.
Under the new guidance, all 19 life insurers will introduce products beginning Jan. 2 that allow policyholders to unlock part of their death benefit from whole life insurance policies. Through the death benefit liquidity program, customers can receive a portion of the payout in advance, either as an annuity or a lump sum, and use it as retirement funding for expenses such as health care and other services.
Financial authorities introduced the measure as Korea rapidly enters a super-aged society, heightening the need for stable retirement preparation.
A bank agency system will also be launched starting in the second quarter, allowing around 20 major post offices nationwide to sell loan products from the country’s four major lenders — KB Kookmin, Shinhan, Hana and Woori. This will enable face-to-face banking services through local post offices in regions without bank branches.
Meanwhile, policy finance support for low-income and vulnerable groups will be significantly revised. Starting Jan. 2, interest rates on loans designed to prevent illegal private lending will be sharply lowered to the 5-6 percent range from the current 15.9 percent. The repayment structure will shift from a one-year lump-sum payment to a two-year installment plan with equal principal and interest.
As part of reforms aimed at improving fairness and transparency in the capital market, listed companies holding treasury shares equivalent to at least 1 percent of total outstanding shares will be required to disclose their holdings and management plans twice a year and explain any discrepancies between previously announced plans and actual execution.
Starting in March, disclosure requirements on executive compensation will be strengthened, with business and interim reports required to include key performance indicators such as total shareholder return and operating profit alongside aggregate compensation figures for all executives.
The scope of companies subject to mandatory English disclosures will also be expanded, with the threshold lowered from KOSPI-listed firms with assets of 10 trillion won ($7 billion) or more to those with assets of at least 2 trillion won, effective May 1, 2026.