D&A is the sole legal adviser working on MG Non-Life Insurance’s unprecedented restructuring and subsequent bankruptcy proceedings in Korea.
“There have been few restructuring cases involving non-life insurers, and the transfer of contracts to a bridge insurer was carried out for the first time in South Korea,” Jung Dong Kim, the D&A team’s lead partner, told Asia Business Law Journal.
MG Non-Life Insurance was officially designated as a “distressed financial institution” in April 2022. Following this designation, D&A provided legal counsel throughout the restructuring process, with additional input from associate Hye Yoon Lee.
Following the company’s transfer of insurance contracts to Yebyeol Non-Life Insurance in September 2025, MG Non-Life Insurance filed for bankruptcy in January 2026. D&A successfully obtained a formal bankruptcy adjudication from the Seoul Bankruptcy Court on 16 March 2026.
“The filing for bankruptcy took considerable time due to the substantial scale of MG Non-Life Insurance’s assets and liabilities compared to typical corporate filings, requiring an extensive review of the company’s current status,” Kim said.
A creditors’ meeting and the official claim examination date are scheduled for 18 June 2026.
Kim said this case “could mark a turning point for restructuring in the insurance market”.
“As financial authorities continue to tighten asset soundness regulations for insurers, companies with weak financial positions may face more proactive and prompt corrective actions and restructuring. Accordingly, regulatory oversight of soundness in the financial sector is expected to strengthen going forward,” he said.
Kim added that the intervention by financial authorities stemmed from the need to eradicate increased costs and policyholder concerns “when a financially vulnerable institution remains in the market for an extended period”.
Established in 2013, MG Non-Life Insurance serviced more than 1.2 million policyholders, with direct written premiums surpassing KRW1 trillion (USD680 million).
Yebyeol Non-Life Insurance, a bridge insurer with a two-year lifespan, is currently up for sale.
