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                                   Fact Book 2006
60 I 61


          1. General Insurance Association of Korea

          (1) Objective

             The objective of the General Insurance Association of Korea is to foster sound development
             of the Korean general insurance industry.

          (2) Legal Basis of the Foundation

             Article 198 of Insurance Business Act (Insurance Association)

             - Insurers may incorporate an insurance association for the purpose of establishing order
               in the insurance industry and for the development of insurance business.

             - An insurance association shall be a corporation.

             Article 32 of Civil Act (Incorporation of Non-profit corporation and Permission there of)
             An association or foundation related to science, religion, charity, art, public relations or
             otherwise related to enterprises not engaged in making profit or gain, may be established
             as a corporation, under permission of pertinent authorities.

          (3) Legal Identity

             Non-profit organization

General Insurance of Korea
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(4) Main Businesses of the General Insurance Association of Korea

                   General Business
                            Improvement of Insurance System & Research Activities
                            Improvement of Insurance Policy Terms &
                            Conditions and Underwriting Conditions
                            Promotion of Solicitor Organization and Fair Competition
                            Education, Training & Seminars
                            General Insurance Help Desk
                            Management of Insurance Statistical Data &
                            Improvement of Accounting System

  Strengthen       Joint Promotion Activities
  Competitive-              Elevating Public Awareness of General Insurance
  ness of the               Promotion in relation to Traffic Accident Prevention
  Insurance                 Consumer Protection
                   Improvement of Insurance Soliciting System
                            Receipt of Reports Filed Regarding lrregular
                            Insurance Soliciting Practices
                            Improve Insurance Soliciting Order
                            Traffic Accident Prevention Activities

                   Traffic Accident & Insurance Crime Prevention
                            Improvement of Various Systems in Collaboration
                            with Authorities and Related Institutions
                            Promotion of Traffic Safety
                            Detection of Fraudulent Claims

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          2. History

           Aug. 1, 1946      Establishment of the Korea Non-Life Insurance Association
                             (Member Companies: Chosun Fire & Marine, Shindongah Fire & Marine,
                             Daehan Fire & Marine, Seoul Fire & Marine)
           Jan.   1, 1962    Establishment of Fire Insurance Rating Committee
           Aug. 23, 1966     Registration of the Korea Non-Life Insurance Rating Association
           Jan.   1, 1975    Merger of the Korea Non-Life Insurance Rating Association
           Mar. 1, 1978      Authorization for the Management of the Korean Nuclear Energy Insurer’s Pool
           Jan.   1, 1979    Authorization for the Management Office of the Marine and Bonded Goods
                             Insurer’s Pool
           Nov.   1, 1980    Merger of the Marine & Bonded Goods Insurer’s Pool and the Korean Nuclear
                             Energy Insurer’s Pool
           Jan.   1, 1982    Establishment of the Korea Non-Life Insurance Rating Committee
           Dec. 16, 1983     Separation of the Insurance Rating Business from Our Association and
                             Newly Set Up the Korea Non-Life Insurance Rating Association
           Dec.   1, 1986    Establishment of the Medical Evaluation Bureau
           May. 25, 1987     Establishment of the Regional Consultation Offices
                             (Busan, Incheon, Daegu, Daejeon, Gwangju, Wonju)
           Jun.   1, 1989    Transfer of the Korean Nuclear Energy Insurer’s Pool to Korean Reinsurance
           Aug. 1, 1996      50th anniversary of Korea Non-Life Insurance Association
           May. 1, 1998      Establishment of the Medical Training Dept.
           Jul.   11, 2000   Establishment of the Special Investigation Unit
           Oct.   5, 2001    Establishment of the Insurance Crime Prevention Academy
           Jan. 29, 2002     Kyobo Auto Insurance, Joining the New Membership of the Association
           Aug. 27, 2004     Inauguration of the 49th Chairman, Kong-Hyuk Ahn
           April 1, 2006     Daum Direct Auto Insurance Company, Joining the Associate Member of the
           Aug. 1, 2006      60th Anniversary of the Korea Non-Life Insurance Association Change its Official
                             Name to the General Insurance Association of Korea
           Jan.   1, 2007    Teachiworld Auto Insurance (Kyowonnara), Joining the New Membership of the

General Insurance of Korea
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3. Organization of the General Insurance Association of Korea


                                           Executive Managing Director Chi-Joong Kim

                                           Managing Director         Sung-Min Kim
 Chairman              Kong-Hyuk Ahn
                                           Managing Director         Byung-Jee Ahn

                                           Director                  Doo-Seok Yang



                      Executive Managing

  Managing Director Managing Director          Director
     Planning &
                      Insurance Business      Automobile
                            Division       Insurance Division

      Planning &          Insurance           Automobile            Audit &
    Research Dept.      Business Dept.      Insurance Dept.     Examination Office
    General Affairs       Marketing          Public Benefit
       Dept.            Support Dept.           Dept.
   Public Relations       Information      Medical Support
        Dept.            System Dept.          Dept.

  Busan Branch
  Incheon Branch
  Daegu Branch
  Deajeon Branch
  Gwangju Branch
  Wonju Branch

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          4. Chronology of General Insurance Industry of Korea

           1883      Jul. 25   Chosun & Japan Trade Regulations concluded
                     Dec. 20 Insurance Regulations published in Hanseong-sinbo (10 day newspaper)
           1892      Apr.      Japan Fire, Establishes branch office in Incheon1895-Apr 17 end
                               of the Sino-Japanese War
                                                                                                                   Agent Office of Chosun Fire, Inc.
           1897      Jun.      The Great Chosun Insurance Co. issues its first insurance certificate (1st issue)   of the 1902’s

           1904      Feb. 23 The Korea-Japan Protocol signed
                     Jul.      Shinho Marine of Japan, establishes branch office in Busan

           1906      Aug.      Heongbin Fire of Japan, establishes branch office in Busan

           1911      Mar.      DaePan Fire of Japan, establishes branch office in Busan

           1912      May.      Heongbin Fire of Japan, establishes branch office in Busan

           1921      Jan.      Empire Fire of Japan, establishes branch office
                                                                                                                   Part of Fire Insurance Tariff During
                                                                                                                   the Period of Japanese Rule
           1922      Oct. 1    Chosun Fire Insurance Co. established                                               (1931)

           1923      Jan. 21 Foundation of Chosun Local Production Promotion Committee (Nation-wide)
           1928      Aug.      Samjung trading company of Japan resumes auto insurance business
                               of its Kyungseong branch office.

           1937      Aug. 26 Chosun Fire & Marine Insurance Co., obtains permission to conduct
                             auto insurance business

           1938      Jan.      Bu-gook Fire Marine of Japan, establishes branch officein Kyunseong
                     Jan.      Chosun Fire, establishes liaison office in Beijing                                  Original Copy of Registration of the
                                                                                                                   Korea Non-life Insurance Association
           1939      Oct. 18 Japan, implements price control decree in Korea                                       (September 1, 1949)

           1942      Mar. 26 Implementation of the Act on Preliminary Measures regarding War
                             Insurance in Korea (Korean insurers)

           1943      Mar.      Japan, implements Insurance Act on Death & Injury from War in Korea
                               (designates 49 non-life insurers to handle insurance on death & injury
                               from war, including Chosun Fire)

           1944      Nov.      The Chosun Non-life Insurance Association, revises fire insurance premium rate
                                                                                                                   Cover Page of the Minutes of the
                                                                                                                   Board of Directors

General Insurance of Korea
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                                     1945   Dec. 1    Chosun Fire resumes business1945~1961- Many insurance companies
                                                      co-existing (14 major non-life insurance companies established)

                                     1946   Apr. 1    Shindongah Non-life Insurance Co. established
                                            May. 17 Daehan Fire & Marine Co. established
Public Notice of the Establishment
of the Korea Auto Insurance, Inc.           May. 25 Seoul Fire & Marine Co. established
(July 1957)
                                            Aug. 1 Chosun Non-life Insurance Association Founded( Founding members:
                                                   Chosun, Shindonga, Daehan, Seoul Fire )
                                            Nov. 19 Fire Insurance Premium Rate Research Committee held

                                     1947   Jan. 17 Kukje Non-life Re-insurance Co. established
                                            Jul. 1    Hankook Fire & Marie Insurance Co.established

                                     1948   Mar. 15 Koryeo Fire & Marine Insurance established in Daegu
                                            Aug. 15 Daedong Fire & Marine Insurance Co. established
Commemorative Party at the
Opening Ceremony of the Korea               Aug. 19 Chosun Non-life Insurance Association changes name to Korea
Reinsurance Corporation
(April 15, 1963)
                                                    Non-life Insurance Association (KNIA)

                                     1949   Feb. 7    Kukje Non-life Re-insurance Co. converts to direct insurer
                                            Mar. 22 Jeil Fire & Marine Insurance Co. established
                                            Jul. 8    Dongbang (Oriental) Postal Fire Insurance Co. launched
                                            Jul. 10   Korea Non-life Insurance Association, submits proposal to Ministry
                                                      of Finance to establish state-run reinsurance company

                                     1950   Feb. 20 Korea Life Insurance Association (corporation ) founded
Completion Ceremony
of the 1st New employee (Non-life           Jun. 12 The Bank of Korea established
Insurance Team) Training Course
of the Korea Insurance Training      1951   Nov. 5    Seoul fire, Hankook Fire, Daedong Fire merged, and Dongkook Fire & Marine
Center (March 16, 1966)
                                                      Insurance Co. established

                                     1952   Jan. 26 Korea Anbo Fire & Marine Re-insurance Co. established
                                            Nov. 1    Korea Anbo Fire & Marine Re-insurance Co. converts to direct
                                                      insurance company

                                     1953   Jun. 23 Haedong Fire & Marine Co. established

                                     1954   Dec. 21 Ministry of Finance, instructs KNIA to contribute KRW20 million in marine
                                                    insurance fund by March 31, 1955

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          1955       Mar. 5 Dongbang Marine Insurance Co. established
                     Aug. 26 Korea, joins IMF and IBRD

          1956       Jan. 10 Korea Non-life Reinsurance Corporation Co. established
                     Jul. 1    Ankook Fire & Marine Insurance Co. established                                 Commemorative Photo-graph of the
                                                                                                              Japanese Delegation for Insurance
          1957       Jul. 16   Korea Transportation Insurance Co. established (mono-line insurance company)   Observation in the House of Korea,
                                                                                                              Upon Invitation by the Korea Non-
          1958       Feb. 21 Samsung Group, acquires Ankook Fire                                              life Insurance Association
                                                                                                              (August 21, 1967)
                     Apr. 15 Daehan Fire, acquires Heungkook Life
                     Aug. 7 Daehan Education Insurance established
                     Dec. 27 Beomhan Marine Insurance Co. established (registration)

          1959       Mar. 31 Heungsansa Co., liquidation process completed
                     Oct. 29 Korea Trade Fire Insurance Co. launched
                                                                                                              4th General Conference of the EAIC
                     Nov.      Koryeo Fire, merged into Ssangyong Group                                       Held in Seoul
                                                                                                              (September 9, 1968)
          1961       Aug. 23 Korea Transportation Insurance Co.’s business license cancelled

          1962       Mar.      Korea Automobile Insurance Co. established
                     Nov. 29 Ankook Fire, merged into Korea Anbo Fire
                     Dec. 29 The Korea Non-life Reinsurance Corporation Act promulgated

          1963       Jan. 21 Koryeo Fire & Marine Insurance Co., acquires Seoul Fire & Marine Insurance Co.
                             into merger
                     Mar. 19 Korea Non-life Re-insurance Corporation established
                                                                                                              Commemorative Ceremony of the
                     Apr. 1    Anbo Fire & Marine Insurance Co., changes name to Ankook Fire & Marine Co.     1st Insurance Day
                                                                                                              (November 21, 1968)
                     Apr. 4    Guarantee of Auto Accident Compensation Act enacted & promulgated
                               (effective date Jul. 31), mainly for liability insurance

          1964       May. 2 Korea Insurance Academy founded

          1966       Mar. 24 Korea Japan Trade Agreement
                     May. 30 EAIC Korean Committee established
                     Jul. 1    Korea Non-life Reinsurance Corporation, joins KNIA as member

          1967       Jan. 1    Fire occurs in Seo-moon market in Daegu( 373 shops burned down,                One of the Three Fire Engines
                               900 million KRW of loss)                                                       Donated by General Insurance
                     Mar. 15 KNIA, presents petition against self-insurance of National Federation            (March 5, 1970)
                             of Fisheries Cooperatives
                     Dec. 1    Implementation of revised non-life insurance premium rate

General Insurance of Korea
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                                       1968   Apr. 25 Business permission issued to AIU, for the first time to foreign insurer
                                              Sep. 9   the 4th EAIC general conference held (Walkerhill Hotel)
                                              Nov. 1   Registration of establishment of Korea Auto Insurance Company
                                                       (reorganization of public-run Korea Auto Insurance company)
The Exam. of Actuary and Loss
Adjuster                                      Nov. 21 [Insurance Day] designated
(November 1978)
                                              Nov. 23 Fire breakout in Nam-dae-moon Market in Seoul (775 shops burned down)

                                       1969   Jan. 20 Hanbo Securities Co. established through joint investment by non-life insurers
                                              Feb. 19 Daehan Guarantee Insurance Co. (mono-line insurer of guarantee insurance)

                                       1970   Dec. 24 Bill for revision to the Insurance Business Act passed in the National Assembly

                                       1971   Jun. 8   Guarantee of Auto Accident Compensation Act revised
                                              Dec. 29 Korea Non-life Insurance Premium Rate Calculation Institution,
Cover Page of the Inaugural Edition
of the General Insurance Magazine                     publishes 1st issue of Insurance Statistics monthly report.
in English
(January 1979)                         1973   May. 15 Korea Fire Insurance Association established

                                       1975   Jan. 1   Korea Non-life Insurance Premium Rate Calculation Institution integrated into
                                              Jan. 1   Fire Insurance Association, acquires financial pool-related work

                                       1976   Aug. 1 Korea Non-life Insurance Association, publishes [30 years History
                                                     of Korea Non-life Insurance Association]

The 1st International Non-life
                                       1977   Feb. 1   Ministry of Finance, designates 1977 as ‘the Year of Insurance’
Insurance Seminar, Seoul Plaza Hotel          Sep. 15 KNIA, moved to Fire Insurance Association Building (in Yeoui-do)
(May 8~9, 1979)
                                              Dec. 31 Revision to the Insurance Business Act promulgated

                                       1978   Mar. 2   Korea Re-insurance Corporation reorganized, and Korean Reinsurance Co.
                                              May. 20 Ministry of Finance, permits non-life insurers to sell against illness
                                                      insurance products, which had been exclusively sold by life insurers
                                              May. 25 Ankook Fire, establishes and opens representative office in London
                                                      Bumhan Marine, establishes and opens representative office in London
Opening Ceremony of the Non-life
Insurance Consultation Office          1979   Apr. 2   Korean Reinsurance Co. opens representative office in New York
(May 20, 1981)
                                              Apr. 20 Korean Reinsurance Co. opens representative office in Hong Kong

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                     Apr. 21 Insurance Dispute Deliberation Committee divided into Non-life
                             Insurance Committee and Life Insurance Committee for insurance dispute
                     May. 8 KNIA holds the 1st International Non-life Insurance Seminar
                                                                                                                Opening Ceremony of the 23rd IIS
          1980       Aug. 1 Government, revises the Guarantee of Auto Accident Compensation                     General Conference in Seoul
                            Act and raises compensation amount limit for automobile accident                    (July 1987)

                     Oct. 2   Kukje Fire, opens representative office in London

          1981       Jan. 10 Auto insurance on-line system in operation
                     Nov. 10 Ministry of Finance, communicates guideline for management efficiency
                             of non-life insurance companies

          1982       Jan. 1   Non-life Insurance Premium Rate Calculation Committee launched
                     Nov. 1   Daehan Fire, Dongbang Fire, Bumhan Fire obtains permission to
                              establish overseas representative office                                          Insurance Exhibition Hall of the Korea
                                                                                                                Non-life Insurance Association
                                                                                                                (April 1988)
          1983       Aug. 20 Ministry of Finance, enacts Regulation on Insurance Soliciting of Non-life
                     Sep. 27 Auto insurance products permitted

          1984       Dec. 31 3rd partial revision to the Guarantee of Automobile Accident
                             Compensation Act: Expansion of government-guaranteed project, etc
                             (hit & run, non-insured automobiles), Attachment of insurance sticker
                             on vehicles made mandatory

          1985       Jan. 15 KNIA, implements Non-life insurance promotion advertising on TV                    Commemoration of Publication of
                                                                                                                General Insurance Historiography
                     Oct. 17 Dongbang Fire Marine, changes trade name to Hyundai Marine & Fire Co.              (January 1989)

          1986       Apr. 24 Insurance Corporation, raises limit on insured amount in house insurance:
                             10 mil KRW 20 mil KRW ( effective May 1)

          1987       Jul. 5   The 23rd International Insurance Society (IIS) General Conference held in Seoul
                              (Hilton Hotel)

          1988       Mar. 31 Ministry of Finance, presents long-term non-life insurance product
                             development guideline
                     Mar. 31 Auto insurance system improved: readjustment to basic ratio of fault
                                                                                                                Foundation of the Korea Guarantee
                             followed by change to traffic signal structure                                     Insurance and Joining as Member to
                                                                                                                Korea Non-life Insurance Association
          1989       Mar. 1 Traffic Accident Prevention Committee launched                                      (February 1990)

                     Apr. 1   KNIA, transfers atomic energy pool work to Korea Reinsurance Co.
                     Dec. 5   Korea Guarantee Insurance Co. established

General Insurance of Korea
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                                       1990   Jul. 14   Lucky Fire, begins insurance sales in Former Soviet Union
                                              Nov. 1    Daehan Guarantee, sale of credit insurance

                                       1991   May. 16 Ministry of Finance, permits establishment of Vigilant’s branch office in Korea
Convening of the Steering                     Dec. 31 Government, promulgates revised Insurance Contract Act
Committee on Business for Public
                                                         Abolished provision on payment of insurance solicitor allowance and insurance
(May 6, 1996)                                            agent commission

                                       1992   Mar. 11 Korea Insurance Development Institute, establishes auto technology
                                                      research center
                                              May. 17 1st non-life claim adjustor qualification examination administered by KIDI

                                       1993   Apr.      Liberalization of aviation insurance premium
                                              Dec. 10 Liberalization in insurance market with implementation of free insurance
                                                      product pricing plan
Presentation of Congratulatory
Plaque to TV Program Team              1994   Jan. 1    Implementation of revised policy clause of non-life insurance product
(‘Lee Gyeong-gyu will be there’)
(March 27, 1997)                              Jan. 19 Ministry of Finance, announces return to insurance agent registration system
                                              Jun.      Koryeo Fire changes company name to Ssangyong Fire
                                              Oct. 9    The 17th East Asia Insurance Conference held in Seoul
                                              Oct. 21 Collapse of Seongsu Bridge in Seoul (32 deaths)

                                       1995   Apr. 1    Ministry of Finance & Economy, implements Step II of insurance product
                                                        price liberalization
                                              Apr. 28 Explosion accident at Daegu subway construction site (101 deaths,
Reception Ceremony on the 50th
Anniversary of the Foundation of the                  169 injured)
Korea Non-life Insurance Association
(August 1996)                                 May. 10 Swiss Re, establishes representative office in Korea
                                              Jun. 29 Collapse of Sampoong Department Store (502 deaths)
                                              Oct. 1    Korea Auto Insurance Co. changes company name to Dongbu Fire
                                                        & Marine Insurance Co.

                                       1996   Dec. 27 Koln Re of Germany, establishes representative office in Korea

                                       1997   May. 25 Insurance Supervisory Service , administers the 1st non-life insurance broker
                                                      examination : selected 50 persons out of 967 applicants
Launch of the Financial Supervisory
Committee                              1998   Feb. 10 Ministry of Finance & Economy, enacts Regulation on Solvency of
(April 1998)                                          non-life insurers (Implementation: April 1)
                                              Nov. 25 Seoul Guarantee Insurance established (merger of Daehan Guarantee
                                                      and Korea Guarantee)

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          1999       Jan. 1    Insurance Supervisory Service is newly launched as Financial Supervisory Service
                               (integration of supervision on banking, securities, insurance supervision, credit
                               guarantee fund) with the enactment of Act on Establishment of Financial
                               Supervisory Organization, etc.

          2000       Jul. 11   Non-life insurance industry, launches insurance crime special investigation unit    Award Ceremony of the 1st Traffic
                                                                                                                   Safety Award
                               (former policemen and investigators)                                                (November 8, 2000)

          2001       Apr. 26 Samsung Fire, opens branch office in Shanghai
                     Oct. 8    Kyobo Auto Insurance Co. (on-line auto insurance mono-line insurer)
                               starts sales on-line
                     Nov.      Koln Re, Munich Re, Swiss Re, First American Title Insurance enters
                               Korean Market

          2002       Jan. 15 Insurance crime prevention center established within KNIA, and Special
                             Investigation Unit expanded                                                           Convening of the 1st Insurance
                                                                                                                   Crime Academy
                     Nov.      Daehan Fire, starts on-line sales of auto insurance                                 (October 8, 2001)

          2003       Aug.      Non-life insurance industry undertakes active effort in supporting victims
                               of Typhoon Maemi such as operating support camp in typhoon-hit areas
                     Sep. 1    Implementation of Bancassurance: Financial institutions such as banks,
                               securities companies, and etc. starts sale of some insurance products such
                               as protection-type insurance

          2005       Feb. 22 Auto insurance (compensation for property damage to other party)
                             made compulsory insurance                                                             Commemoration Ceremony of the
                                                                                                                   60th Anniversary Since the
          2006       Aug. 1 The 60th anniversary of the foundation of the Korea Non-life Insurance                 Foundation of the Korea Non-life
                                                                                                                   Insurance Association
                            Association (KNIA)                                                                     (August 2006)

General Insurance of Korea
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Cooperation Memorandum with Overseas Insurance Associations

                               Cooperation Memorandum Signed between
                               Korea Non-Life Insurance Association and Insurance
                               Association of China
                               (March 20, 2003)

                               Cooperation Memorandum Signed between Korea
                               Non-Life Insurance Association and General Insurance
                               Association of Japan
                               (November 25, 2003)

                               Cooperation Memorandum Signed between Korea
                               Non-Life Insurance Association and Association of
                               British Insurers
                               (June 19, 2006)

                                                                             Fact Book 2006

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