South Korea’s antitrust regulator has opened an investigation into suspected collusion among eight non-life insurers in the group accident insurance market, a segment where similar conduct was penalized nearly two decades ago.
The Korea Fair Trade Commission’s (FTC) Cartel Investigation Bureau dispatched investigators to the headquarters of eight non-life insurers on May 26, 2026, as part of a probe into suspected bid rigging in the group accident insurance segment, ChosunBiz reported. The eight companies under investigation are Samsung Fire & Marine Insurance, Meritz Fire & Marine Insurance, DB Insurance, KB Insurance, Hanwha General Insurance, NH NongHyup Property & Casualty Insurance, Heungkuk Fire & Marine Insurance, and Hyundai Marine & Fire Insurance – collectively representing a significant portion of South Korea’s non-life insurance market. At the centre of the investigation is whether these insurers coordinated with one another when placing bids for group accident insurance contracts issued by corporations. Such conduct, if proven, would fall under Article 40, Paragraph 1, Subparagraph 8 of the Monopoly Regulation and Fair Trade Act, which bars competitors from agreeing in advance on which bidder will win a contract and at what price.
Group accident insurance is purchased by corporations or organizations on behalf of their employees to provide coverage in the event of workplace injuries. The policyholder is the company, not the individual worker, and employees receive the associated benefits – such as insurance payouts – under the terms of the group contract. This arrangement differs from individual policies, where the person seeking coverage initiates and holds the contract directly. Because group accident insurance contracts are typically awarded through competitive bidding, the market is particularly vulnerable to the kind of collusion the FTC is now investigating – where competing insurers may coordinate to divide contracts, suppress competition, or fix pricing outcomes before bids are formally submitted.
The current investigation follows a documented case of collusion in the same broader product category. In 2008, the FTC found that three life insurers and five non-life insurers had divided group insurance contracts for 16 metropolitan and provincial offices of education among themselves along regional lines during the bidding process. The companies involved were fined a combined penalty surcharge of 1.956 billion won. That prior enforcement action, which targeted a nearly identical structure of collusion in a government-linked group insurance market, did not prevent suspected misconduct from resurfacing in the corporate group accident segment nearly 18 years later.
The pattern is likely to draw attention to whether existing deterrents – including financial penalties and reputational exposure – are sufficient to discourage anticompetitive coordination in this market. Companies found in violation of the Monopoly Regulation and Fair Trade Act may face penalty surcharges, corrective orders, and referrals to prosecutorial authorities, depending on the severity of the offense.
The FTC investigation is unfolding alongside a broader tightening of oversight across South Korea’s insurance industry. In March 2025, the Financial Supervisory Service (FSS) announced it would carry out comprehensive inspections of insurance companies and general agencies, with examination targets to be selected based on pre- and post-risk indicators. According to ChosunBiz, then-FSS Deputy Governor Kim Beom-jun stated at the regulator’s 2025 supervisory briefing: “This year, we will closely manage the risks of insurance companies and rigorously address unhealthy business practices.”
The FSS said inspections would focus on internal control adequacy, sales conduct, and financial soundness, with zero-tolerance enforcement – including penalties and referrals to agencies such as the National Tax Service – applied where serious violations are identified. The regulator also indicated it would pursue reforms to actual loss insurance standards and automobile insurance long-term treatment cost guidelines. The dual regulatory actions signal a period in which both antitrust compliance and market conduct are under concurrent review by separate arms of South Korea’s regulatory apparatus.
