Kyobo Life chief in spotlight for principle-focused management
Kyobo Life Insurance, which has operated under the same name and ownership for the past 66 years since its foundation, has continued its growth independently without external support like public funds.
This rare achievement in the country’s financial industry is attributed to management that stresses environmental social and corporate governance (ESG) as well as principles and ethics, building customer trust based on the founding philosophy of “promoting education.”
Shin Chang-jae, the insurer’s CEO and chairman of the board has a unique career, having transformed from a medical school professor to the CEO of a life insurance company. He has guided the insurer through the Asian financial crisis as well as the global financial crisis, growing it into a leading insurer.
“Behind the continuous growth is a management philosophy, which is customer-oriented, transparent and ethical. It seeks mutual growth with others instead of only seeking profit,” said Rhee Dong-kee, an honorary professor of business administration at Seoul National University.
Kyobo has shown examples of ethical management. The chairman’s family paid 183.1 billion won in inheritance tax after his father - Kyobo’s founder Shin Yong-ho - passed away in 2003. The payment made headlines as it was rare back then for a conglomerate owner family to honestly pay the huge tax instead of taking all means possible to avoid it. He has not faced any disciplinary actions from financial authorities during his 24-year tenure as CEO, which is notable in an industry plagued by frequent financial scandals.
Shin was invited to present Kyobo’s management philosophy at the Best ESG Forum, which marked its 20th anniversary last year. Shin said, “Ethical management should be more than simply abiding by the law. We need to be more active, fulfilling all our ethical responsibilities as a corporate citizen while making excellent achievements and seeking a balance between parties of interest. Only then can we win trust and grow together.”
Kyobo’s management, which focuses on the virtuous circle sustained by customers, insurance salespeople, employees, investors, government and the local community led Shin to be named “Insurance Hall of Fame Laureate” last year, awarded by the International Insurance Society (IIS). His father also won the award in 1996.
IIS noted that the leadership with love, affection and respect for all human life based on stakeholder relationship management has established Kyobo as one of Korea’s most successful insurers and a pioneer in ESG and sustainability initiatives.
Kyobo’s management philosophy extends beyond the financial sector. Kyobo Book Centre, with 43 nationwide branches, is based on such a legacy. It continues to invest in the bookstores, despite their lack of profitability.