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| NH농협생명. (사진=NH농협생명) |
[Alpha Biz= Paul Lee] SEOUL, October 27, 2025 — South Korea’s Financial Supervisory Service (FSS) has launched a field investigation into NH NongHyup Life Insurance, following allegations that the insurer engaged in a multi-billion-won rebate scheme tied to a questionable promotional goods contract.
During a National Assembly audit on Monday, FSS Governor Lee Chan-jin said,
“There are strong suspicions of misconduct related to NongHyup Life’s promotional goods contract. If any violations of law are confirmed, we will take stern action in accordance with relevant regulations.”
The controversy centers on a ₩2 billion (US$1.45 million) contract to purchase 100,000 sets of hand cream as customer giveaways, signed via private tender late last year.
According to Rep. Heo Young of the opposition Democratic Party, the actual delivery amounted to only half the order — 50,000 sets — with part of the funds allegedly diverted to external accounts.
Further scrutiny revealed that the main supplier was a skincare shop in Wando County, South Jeolla Province, operated by the younger sister of a senior procurement manager at NongHyup Life. Another intermediary firm involved was identified as a paper company with ₩10 million (US$7,000) in capital and no physical operations.
Based on the difference between the production cost (₩11,000) and the contract price (₩20,000) per unit, investigators estimate that up to ₩9 billion (US$6.6 million) may have been siphoned off as illicit kickbacks.
Lawmakers also raised questions over NongHyup Financial Group and the National Agricultural Cooperative Federation (NACF) for failing to conduct internal audits, despite clear red flags.
Rep. Heo said,
“There are testimonies suggesting that cash was delivered to senior officials at NACF and NH NongHyup Life. One executive, who was promoted to CEO earlier this year, allegedly stated during questioning, ‘I didn’t take anything; I sent it upstairs to the 11th floor (referring to NACF headquarters).’”
Governor Lee confirmed that the FSS had already initiated on-site inspections and criminal procedures, including search and seizure, and pledged to strengthen oversight of internal controls within the broader NongHyup financial network.
The FSS also plans to expand its probe across the insurance sector, targeting similar promotional gift-related transactions.
“We will incorporate these findings into our upcoming industry-wide inspections,” Lee said, adding that “regulatory reforms will be considered to prevent recurrence of such practices.”
알파경제 Paul Lee 특파원(hoondork1977@alphabiz.co.kr)
