Bay Moon says the Japan P&I Club appears to have stopped targeting Korea P&I’s business after he objected to its marketing activities.
The Korea P&I Club’s chief operating officer said he complained to the South Korean financial authorities about his rival’s discounting when it entered the domestic market in 2017 and again last year.
Moon alleged that when the Japanese club entered the South Korean business for the second time, ahead of the February 2019 renewal, it was offering discounts of up to 40% to win Korea P&I accounts.
But he said he complained to the financial authorities in Seoul because the Japanese club is not licensed to operate in South Korea under the country’s Business Insurance Act.
In 2017, Moon took his case to the Korea Fair Trade Commission. In 2018, he contacted the national Financial Supervisory Service.
The second complaint led to Japan P&I withdrawing from South Korea ahead of the February 2019 P&I renewal, Moon claimed.
“In November 2018, they attacked, but at the end of the day they stopped,” he told TradeWinds.
“I was worried by the Japan club’s attitude. They attacked our clients by giving 40% or 45% reduction in price, and that cannot be sustainable, and we need to defend our business.
“I am not asking them not to come to South Korea. What I am saying to them is: do not attack our business when you are not licensed properly according to Korean law.”
However, Japan P&I denied the Korea P&I claims and said it was operating within the South Korean law.
The club told TradeWinds: “We, as a prudent insurer, have always been doing our P&I business in Korea by impeccably complying with the Korean law and all regulations required by relevant regulatory authorities for P&I insurance.”
Despite the keen competition, Moon would like to establish an Asian P&I association that includes Korea P&I, Japan P&I and China P&I.
