Kyobo Life Insurance will absorb its wholly owned digital subsidiary, Kyobo Lifeplanet Life Insurance, which launched in 2013 as South Korea’s first internet-only life insurer. Boards of both companies approved the small-scale merger on the 15th, with completion targeted for April next year pending approval from South Korean financial authorities and other procedures. The move follows the introduction of IFRS17 and the K-ICS solvency regime, which have increased capital-management demands for digital insurers whose short-term, small-ticket and savings products make it difficult to build contractual service margin and maintain stable capital ratios. As of the end of June, Lifeplanet had about 230,000 customers, ₩527.3 billion in assets, first-half insurance revenue of ₩9.1 billion and a K-ICS ratio of 162.97%. It posted a net loss of ₩20.1 billion last year and ₩6.5 billion in the first half of this year, while Kyobo Life has provided about ₩365 billion through seven capital increases. Kyobo Life will retain the Lifeplanet brand and establish a tentative Lifeplanet Business Division, while customers continue using existing apps and websites during phased system integration.