MG Insurance employees have launched an indefinite hunger strike to protest the transfer of their contracts to five major non-life insurers. The employees, represented by MG Sonbonojo and the National Office Financial Services Union, held a general meeting and struggle rally outside the presidential office in Yongsan on the 30th. They are calling for the sale of MG Sonbo to a top-tier company rather than the current plan to transfer contracts to Samsung Fire & Marine Insurance, Meritz Fire & Marine Insurance, KB Insurance, Hyundai Marine Insurance, and DB Insurance.
The union emphasized that transferring contracts to these five insurers is an ‘abnormal act’ and demanded that the financial authorities withdraw their plans to establish a bridge insurance company. Bae Young-jin, head of MG Sonbo, stated that the union had not received any security for the succession of union members and criticized the Yoon Suk Yeol government for ruining MG Insurance. Lee Jae-jin, chairman of the Office Finance Union, expressed frustration over the lack of agreement on employment succession rates and consolation money for workers.
The crisis began when MG Insurance failed to sell after being labeled a ‘bad financial institution.’ Despite initial negotiations with Meritz Fire & Marine Insurance, the deal fell through in March. The Korea Deposit Insurance Corporation and Financial Services Commission are now pushing to establish a bridge insurance company to manage existing contracts.
Authorities plan to transfer 1.21 million subscribers’ contracts to the five major insurance companies by the end of 2026. Kwon Dae-young, secretary-general of the Financial Services Commission, assured that there would be no increase in insurance premiums and that conditions would remain the same for existing policyholders. However, union officials argue that a normal sale without damage to subscribers is possible and that the authorities’ unilateral push is problematic.
The situation has raised concerns among subscribers, with some predicting that the crisis may enter a new phase. Recent meetings between MG Insurance’s labor union and political figures, including Rep. Kim Hyun-jung and Rep. Min Byung-duk of the Democratic Party of Korea, have fueled speculation that the direction of the MG loss crisis could change.
