Hanwha Life Insurance Co., a major South Korean insurer, decided Friday to pay all overdue insurance claims on suicide.
Hanwha plans to pay around 91 billion won ($78.8 million) on 637 unsettled cases in the decision made at a board meeting.
It's apparently aimed at reversing the state financial watchdog's tough punishment against the firm.
Last month, the Financial Supervisory Service issued a two-month suspension of partial business operations for its refusal to pay most of unpaid benefits for suicide claims.
The insurer's CEO Cha Nam-gyu, who received a "disciplinary warning," may also face dismissal if the FSS' punishment is approved by the Financial Services Commission next week.
The problem dates back to the 2000s, when a number of local insurers sold insurance products with a special contract on disaster-related deaths. They included the terms to recognize suicide after two years of the contract as a disaster death.