South Korea

당국, 롯데손보에 '옐로카드'… 매각 빨간불

Maekyung | Local Language | News | Nov. 7, 2025 | Regulatory Enforcement Actions

Lotte Insurance has been issued a business improvement recommendation, the lowest level of prompt corrective action, by the Financial Services Commission (FSC) due to insufficient capital soundness. The FSC warned that without immediate solvency improvement measures, insurance claim payments and consumer protection could be at risk. Lotte Insurance must submit a capital adequacy improvement plan within two months and implement it over one year if approved. Despite this, the insurer will continue operations including claim payments.

Lotte Insurance’s solvency ratio (K-ICS) was 129.46% in Q2, below the 130% regulatory threshold, prompting financial authorities to intervene. Although its ratio temporarily rose to 141.6% in Q3 after capital-raising efforts, the authorities considered this a temporary fix since the increase was largely due to supplementary capital like subordinated bonds, not stable core capital. The company’s core capital ratio has worsened, standing at -12.9% in Q2 compared to the domestic non-life insurer average of 106.8%.

This is the first prompt corrective action on an insurer since 2018 and marks a downgrade after four years of limited improvements. Lotte Insurance contests the business improvement recommendation, claiming potential illegality and arguing that it relies on non-quantitative, subjective assessments. The prompt corrective action is expected to harm the company's image and likely delay the sale process managed by private equity firm JKL Partners, which began in 2023 after acquiring Lotte Insurance in 2019.

Joongang Ilbo | English | News | Nov. 7, 2025 | Cyber Attacks and Data Loss

A human rights activist focused on North Korean issues reported that their computer had been hacked and used to send an infected file to approximately 30 contacts via KakaoTalk. The activist received a suspicious message, purportedly from their own account, containing a file claiming to offer “ways to relieve stress,” which they never sent.

The Gyeonggi Nambu Provincial Police Agency is investigating the incident through its cybersecurity division. Police identified that the malware involved in the attack closely resembles tools typically used by North Korean state-sponsored hacking groups. Investigators believe the hackers accessed the activist's personal computer and used the KakaoTalk messenger app to distribute the malware.

Authorities suspect the aim was to steal information related to individuals engaged in North Korea-related activities. The police are working to determine how the hackers gained access to the activist’s device and are assisting in preventing further breaches of personal information.

Hankyoreh - E | English | News | Nov. 7, 2025 | Geopolitical Conflict and Disputes

Veteran South Korean diplomat and former foreign minister Song Min-soon argues that the goal of complete denuclearization of the Korean Peninsula through negotiations is an unrealistic “pipe dream.” He predicts that the peninsula will remain divided into “two very different, separate states” for the foreseeable future and suggests South Korea should temporarily shelve the pursuit of unification and denuclearization.

Song’s perspective is shaped by North Korea’s emergence as a nuclear power in 2017, marking a fundamental shift requiring South Korea to accept nuclear capabilities on the peninsula as a constant. He advocates for a “cold,” passive peace strategy focusing on deterrence, containment, and maintaining stability rather than the previous “warm” approach of exchange leading to denuclearization and reunification.

He warns that South Korea’s security reliance on the US nuclear umbrella is increasingly precarious due to growing American isolationism and unpredictable future commitments. As a solution, Song proposes South Korea pursue nuclear latency, a status where it has the capacity to quickly develop nuclear weapons while complying with the Nuclear Non-Proliferation Treaty, similar to Japan and Germany.

Song calls for a redefinition of the South Korea-US alliance to one of mutual independence, including South Korea regaining wartime operational control from the US. He emphasizes addressing North Korea as a neighbor with whom coexistence and deterrence are necessary, and viewing unification as a possible, not guaranteed, outcome. His views are expressed in his new book, "Good Fences, Good Neighbors," which seeks to provoke national debate on the future direction of South Korea’s security and unification policies.