South Korea Insurance Sector Financial Fraud Losses Drop 10.6% in 2025 Despite More Incidents

According to the Financial Supervisory Service (FSS), last year's insurance financial fraud losses in South Korea totaled 3.664 billion won, down 10.6% from 2024's 4.029 billion won. However, the number of fraud incidents rose to 15 cases (up 4 from 2024), with life insurers reporting 895 million won in losses across 8 cases, and property insurers 2.769 billion won across 7 cases.

The largest case involved KB Insurance, where an employee embezzled approximately 1.6 billion won in unclaimed death benefit payments. The fraud was detected when an internal staff member identified irregularities in the claims processing. Other significant cases included Heungkuk Fire (788 million won) and AIA Life (476 million won).