Outstanding policy loans at five major South Korean life insurers reached 42.37 trillion won at the end of July, up 466.5 billion won from a month earlier and 2.36 trillion won from the end of January, as tighter bank household lending rules and demand for quick funding pushed more borrowers toward loans backed by insurance surrender values. At the same time, the sector is reducing savings-type insurance under IFRS17, with individual savings insurance in-force value falling to 359.67 trillion won as of May, down 4.77 trillion won from a year earlier and more than 77 trillion won from its end-2021 peak. The combination has intensified debate over how far insurers can curb policy loans without increasing policy cancellations or undermining product and liquidity strategies.