South Korea's regulator, the Financial Services Commission, has announced its plans to ease capital adequacy requirements for insurers under the Korean Insurance Capital Standard (K-ICS).
The move is to “help lessen their burdens and raise the quality of their capital base”, according to an article in The Korea Times. The new ratio is expected to be between 130% to 140%, the article stated.
According to Korean Re, insurers are required by law to maintain the ratio at 100% or above. The article said insurance companies are “advised to maintain their capital adequacy ratio at above 150%”.
The K-ICS came into force in 2023.