The Financial Services Commission (FSC), South Korea's financial regulator, has conditionally approved Lotte Insurance's management improvement plan. Reports from South Korean media say this was approved at the FSC's regular meeting on 27 May. The move allows the insurer to proceed with a structured turnaround programme over the next 18 months.
Under the decision, Lotte Insurance will be required to carry out its planned reforms while remaining under close supervision from financial regulators. It was not immediately clear what specific conditions were attached to the approval.
If Lotte Insurance fails to meet the required conditions, its current plan would be invalidated, forcing the company to submit a revised restructuring proposal to the FSC for further review. Should a new submission also fall short of regulatory standards, the management improvement order itself could be lifted.