On June 18, our university’s Professor Jeong Hong-ju (trade/international management) explained the background of the establishment of the ‘Korea Mutual Aid Association’ at the Seoul Finance Center. An academic society specializing in mutual aid is on the verge of establishment. Accordingly, it is expected that changes will occur, such as the activation of academic research on the mutual aid industry and the active exchange of information in the mutual aid industry. The ‘Korea Mutual Aid Association’ is scheduled to hold its inaugural general meeting in September, and it is expected to play a central role in supporting the development of the mutual aid industry, providing information sharing and networking opportunities for the mutual aid industry through research and education and publication, and international exchange. We met with Jeong Hong-ju, the preparatory committee chairman of the Korea Mutual Aid Association, to hear about future plans.

What is the background for the establishment of the Korean Mutual Aid Association (hereinafter referred to as the Mutual Aid Association)?

The insurance industry has no professional academic society, so I decided to create one myself. I have personally worked as an advisor for several insurance organizations, including the Medical Compensation Insurance Association Vision Research Service, and have twice established academic societies. There are many insurance and insurance experts around me, so I want to pioneer a new path with them.

How are you preparing to establish the society?
The full-scale preparations for establishment began in May of last year. We expressed our intention to establish the mutual aid society to those around us, met with like-minded people to exchange opinions, and recruited about 30 members. Among the members were various experts, including the Construction Mutual Aid Association team leader, the National Taxi Mutual Aid Association operating committee members, insurance company executives, and professors. In addition, we will complete the organization and articles of association of the society, and we plan to officially establish the society through the inaugural general meeting in September.

Currently, about 100 mutual aid organizations provide guarantee, loss compensation, and savings-type mutual aid products to about 2 million members, but there are almost no mutual aid experts or scholars. Why is that?

Since each mutual aid organization has different main products such as guarantees and mutual aids, it is difficult for scholars to comprehensively study the mutual aid industry. In addition, since each organization has different characteristics by industry and member, it is difficult to group them together. Compared to the insurance industry, the small size and lack of credible academic societies or associations also lowers research motivation. Scholars turn to insurance because their time spent on research is not recognized as academic achievements. Although mutual aid is a very good system for eliminating blind spots in insurance, the reality is that they are stuck in their own league.

Can the Mutual Aid Society become the center of this mutual aid industry?

In order for an industry to develop, there must be many workers and stakeholders in the industry. The Mutual Aid Society, as a non-profit organization, can contribute to creating an academic foundation. Although it does not directly represent the interests of its members like an association, it is meaningful in that people interested in mutual aid gather to study and share their thematic awareness. It seems that the society will naturally serve as a center for information exchange and the center of gravity in the process of performing various functions.

What kind of blueprint does the Mutual Aid Society have to establish itself as a credible organization? 

First, we will conduct an educational program to cultivate mutual aid experts. We plan to conduct an ‘Mutual Aid Manager Training Course’ for 8 weeks from July 8 to August 28. We plan to provide practical lectures on topics such as insurance and mutual aid, mutual aid-related laws, mutual aid management strategies and new business directions, asset management, and risk management to approximately 25 executives of domestic mutual aid organizations.

We also need to produce academic journals. The essence of the society is to support the academic activities of its members. We plan to hold regular study meetings to promote academic research in the field of mutual aid, and to continuously publish academic journals that will include the research results of scholars.

In addition, we plan to contribute to the development of the mutual aid industry and increase its credibility through mutual aid agency consulting, certification of excellent mutual aid agencies, and international exchange.

How do you plan to promote international exchange in the mutual aid field?

The mutual aid system has developed more in Japan than in Korea. We plan to benchmark advanced mutual aid techniques through exchanges with capable professors at Waseda University in Japan, and, conversely, to spread the advantages of Korean mutual aid to foreign countries.
In addition, mutual aid is expected to be widely utilized in developing countries as a self-help welfare system that complements the imperfections of the market economy and supports the stability of the lives of members with the same occupation. We plan to spread Korea’s mutual aid system to ASEAN, Africa, and Central and South American countries, and hold academic research exchange events such as seminars. We have experience in creating the Korean Financial Consumer Association in 2010 and the International Financial Consumer Association in 2015, and we have an overseas network that we have built up since then, so if we utilize this, we will be able to promote international exchange in the mutual aid field.

Is there anything else you would like to say?

Establishing an association is similar to creating a startup. For the first three years, there are no people, there is a lot to do, and you have to endure difficult times. However, after passing the 'Death Valley', a new land will appear. I want to plant a seed here. If we manage it diligently for the next five years, green seedlings will grow and it will become a large forest.
Up until now, the insurance industry has been a closed and self-sufficient area. Since business was conducted targeting 'house rabbit' members, it was difficult for the general public to know about insurance, and there were limits to the growth of the industry. We want to be a wind of change in this industry.

The insurance association will bring together experts in risk management, insurance, accounting, financial investment, and law to contribute to the development of the Korean insurance industry and increase credibility through insurance research, consulting, education, awarding excellent insurance, and international exchange. We hope for your interest and participation in our future steps.

Photo and original text source: Korea Insurance Newspaper (http://www.kongje.or.kr), Reporter Park Hyeong-jae, 2025.07.01., https://www.kongje.or.kr/news/articleView.html?idxno=10184