Kyobo Life CEO’s ethical management earns global recognition

Kyobo Life Insurance Co.'s Chairman Shin Chang-jae is internationally recognized for setting the global standard for ethical management after two decades of exemplifying such principles in his business practices.

The Geneva Forum Award Judging Committee named Shin, also the chief executive officer of South Korea’s third-largest life insurer, the winner of the Global Ethics & Stakeholder Commitment Award at the 2024 Geneva Entrepreneurship Forum held at the Geneva headquarters of the International Labor Organization (ILO) on June 27, Kyobo Life announced on Monday.

Organized by international organizations such as the International Council for Small Business (ICSB), the ILO, the UN Conference on Trade and Development and the International Trade Center, the award recognizes global entrepreneurs who pursue social justice in their work.

The award was the first of its kind, recognizing ethical and stakeholder-centered operations, and Shin was picked as its inaugural winner.

“This award recognizes outstanding commitment to ethical practices and stakeholder engagement in business, and Chairman Shin Chang-jae's exemplary leadership and dedication have earned him this honor,” Dr. Ayman El Tarabishy, the President & CEO of the ICSB, said during the award ceremony.

“The journey to ethical management is never ending,” Shin said upon receiving the award. “I strongly believe the pursuit of active ethical management to benefit every stakeholder, not passive ethical management focusing merely on maintaining law and order, will lead to a company’s greater success.”

The chairman of Kyobo Life Insurance received the award about a year after he was honored as the 2023 Insurance Hall of Fame laureate early last year.

MORE THAN TWO DECADES OF ETHICAL MANAGEMENT

Since Shin took the helm of Kyobo Life Insurance in 2000 after the death of his father and Kyobo founder Shin Yong-ho, he has been asserting the importance of practicing ethical management with a focus on “human-centered stakeholder relationship management.”

The founder’s eldest son was an established obstetrician and a medical professor at the country’s top Seoul National University for nearly a decade before joining his family-owned business as its leader.

With his unique background as a former practicing physician, he often describes the life insurance business as “humanitarian” – one built on a genuine love for humans.

His ethical management philosophy and reputation became known internationally after he successfully transformed Kyobo Life Insurance into a blue-chip company earning hundreds of billions of won a year

Kyobo, which was reeling from the aftermath of the 1998 Asian financial meltdown in the early 2000s, is now Korea’s third-largest life insurer after market leader Samsung Life Insurance Co. and runner-up Hanwha Life Insurance Co.

Last year, Kyobo was also selected as Korea’s top insurer, as measured by the Korea Sustainability Index (KSI) of the Korea Standards Association, maintaining its position as the industry leader for 14 consecutive years.

The Kyobo chief last year confessed that ethical management is a very lonely and arduous journey but he has no intention of backing down from his commitment to staying candid and truthful to all stakeholders of the company.

“Overstating earnings for the sake of short-term profit is no different than cheating stakeholders,” said Shin.

“After 20 years of running an insurance company, I know the insurance business better than anyone, and I couldn't lie about it.”

Write to Hyeong-Gyo Seo at seogyo@hankyung.com

Sookyung Seo edited this article.