The Biggest Forecast in Insurance Contract Loan Ever for 'Refuge Loans'

Amid high interest rates, high prices, and sluggish domestic demand, the amount of insurance contract loans that borrow money as collateral for insurance cancellation refunds has exceeded 70 trillion won.

Kim Hyun-jung of the Democratic Party of Korea, a member of the National Assembly's political affairs committee, said that the balance of insurance contract loans by domestic insurers as of October last year was 71.328 trillion won.

Considering that loans were concentrated in the second financial sector due to the tightening of household loans by financial authorities at the end of last year, it is expected to be the largest ever as of the end of the year.

In addition, the insurance loss refund, which is the money that subscribers receive when their contracts are terminated because they do not pay insurance premiums for a certain period of time, was KRW 1.39 trillion until October last year, nearly KRW 60 billion more than the same period a year ago.

The amount of cancellation refund that subscribers receive back after requesting the termination of the insurance contract was 43.4595 trillion won, slightly lower than the same period a year ago, but the number of cancellations was 4.188,506, 5.8% higher than the same period a year ago.

Representative Kim Hyun-jung said, "The reality that people cancel insurance or receive insurance contract loans to prepare for a rapid supply shows a serious crisis in the household economy," adding, "The government and financial authorities should make every effort to strengthen household debt management and welfare policies."