South Korean financial authorities will be easing entry regulations to allow more boutique brokerage and specialty insurance services into the country.
In an outline released by the Financial Services Commission and the Financial Supervisory Service on 2 May, capital requirements will be lowered for insurance and brokerage houses focusing on specialty and customised retail services to widen consumer choices, reports Pulse News.
Under current domestic law, an insurance company needs at least KRW30 billion (US$28 million) and a permit to start a business.
The Seoul authorities are modelling the new scheme after Japan’s insurance industry. Japan allows small insurance firms to start operations upon registering with the regulator with only a starting capital of JPY10 million ($91,000), one-hundredth that required of larger peers.
The Korean government hopes that the deregulation would broaden the market with insurance entities selling specific products like policies for pets.