President Sung Dae-kyu of Shinhan Life introduces Shinhan Life's new vision in a press conference at the Westin Chosun Hotel in Seoul on June 15. (Photo: Shinhan Life)

Shinhan Life, which will be born out of the integration of Shinhan Life Insurance and Orange Life, held a press conference at the Westin Chosun Hotel in Jung-gu, Seoul on June 15 ahead of its official launch on July 1.

On hand were Sung Dae-kyu, CEO-designate of Shinhan Life, Lee Young-jong appointed as head of the Strategy and Planning Group at Shinhan Life and seven people who will serve as executives at Shinhan Life.

In line with the launch of Shinhan Life, President Sung Dae-gyu announced the integrated company’s vision, key management strategies and new brand.

Introducing Shinhan Life's new vision, “New Life Brings New Value to Life,” Sung said, “We will make Shinhan Life a leading insurer that presents a new paradigm to the current insurance industry through challenges and innovations ahead of other life insurers.”

Shinhan Life’s assets add up to about 71.5 trillion won, ranking fourth in the Korean life insurance industry. Its net profit stands at 396.1 billion won, placing second while its insurance premiums reached about 7.9 trillion won, ranking fourth.

It has an RBC of 314.1 percent. “I will pursue stable management that can earn customer trust based on the integrated company’s strong financial health,” Sung said.

Through integration, Shinhan Life has become able to build a multi-channel insurance business model that can satisfy the needs of various customers.

That is to say, it will have Orange Life FC channels optimized for customers in their 20s, 30s and 40s, Shinhan Life FC channels focusing on customers those in their 40s, 50s and 60s, a telemarketing channel and a hybrid channel of both telemarketing and face-to-face marketing and a digital insurance channel that let customers sign up for insurance policies via smartphones.

The integrated company will launch four new insurance policies in commemoration of its birth.

“Shinhan Life will be able to provide products that meet customers’ needs through channels they want,” Sung said. “We will also operate a wealth manager (WM) organization and an inheritance and gift research institute in charge of those with deep pockets. Shinhan Life will also own GA subsidiary Shinhan Financial Plus.”

“Shinhan Life will establish itself as the most innovative and reliable insurance company trusted by customers and grow into a company that take the lead in accomplishing Shinhan Financial Group’s mission, heartwarming finance,” Sung said at the end of the press conference.

Although Shinhan Life has become one of the four largest life insurance companies in Korea, it will be a big challenge for Shinhan Life Insurance and Orange Life Insurance to achieve chemical integration as one united company, Shinhan Life, some industry experts say.

They say that it will be difficult for the integrated company to make a compromise between employees of two companies due to big differences in their job ranking and wage systems.

The labor union of Orange Life met with Sung on June 15 and delivered its opinion that it is necessary to close wage and rank gaps between Shinhan Life Insurance and Orange Life.

During the meeting, Sung and Orange Life unionists exchanged each other’s positions and concluded that a further discussion will be necessary.

“We met with CEO-designate Sung and delivered opinions such as gaps between the job rank and wage systems of the two companies, but we left the meeting after making no progress,” said an official of the Orange Life labor union.

The integrated company has to come up with new human resources management system that can satisfy both employees of Shinhan Life Insurance and Orange Life.

Moreover, Orange Life does not run a wage peak system, but Shinhan Life Insurance does. Therefore, Orange Life employees can work until the age of 60 while those of Shinhan Life until the age of 55.

For example, Hana SK Card and KEB Card were integrated into one company on December 1, 2014, but the integrated company could finally complete the integration of the two companies’ HR systems only in January 2017.

“We are currently integrating the human resources management systems of both companies,” said Lee Young-jong, head of the Strategic Planning Group at Shinhan Life during the press conference on June 15.

“Since the second half of last year, HR managers of both companies have created a big framework for an integrated HR system and are in talks with both unions.”