New reporting standards to bring more investors to Korea

April 4 2017 by InsuranceAsia News Staff

More foreign direct investments are seen to come for South Korea’s insurance industry with the introduction of an insurance liability market valuation under the International Financial Reporting Standards 17 (IFRS 17).

Seo Jung-woo, a member of the International Accounting Standards Board, said that the board is in the process of completing IFRS 17.

The final draft is scheduled to be released in May.

Seo explained that in the absence of IFRS 17, the performance of Korea’s insurance firms could not be accurately compared with those of other countries because of the discrepancies in the accounting system.

Many foreign investors are hindered from pouring in capital to Korean insurance companies because of the absence of comparable information.

If Korea adopts IFRS 17, its insurers can now prepare reports based on globally accepted accounting standards.

Thus, Seo said investments in local insurance sector by foreign players eventually will get a boost.

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