[Edaily Reporter Kim Eung-tae] “While traditional insurance products are merely a reactive measure that provides compensation after an accident occurs, digital-based ‘embedded insurance’ plays a role in preventing and protecting against accidents before they happen. Following smartphones and home appliances, we will pioneer the market by integrating embedded insurance into e-commerce, mobility, and the financial sectors.”

Ko Kwang-beom, CEO of BoltTech Korea, recently met with E-Daily at the company’s headquarters in Gangnam-gu, Seoul, and stated, “Korea is a country with high acceptance of new technologies and a high rate of digital adoption, so the penetration of digital-based embedded insurance will spread rapidly.”
BoltTech Korea is the Korean subsidiary of a global insurtech (a portmanteau of insurance and technology) company that operates embedded insurance businesses in 39 countries worldwide. Since its establishment in 2020, the company has formed partnerships with major domestic conglomerates and introduced differentiated insurance solutions.
Embedded insurance operates by integrating digital insurance products into various business sectors, such as telecommunications and e-commerce. A representative embedded insurance product introduced by BoltTech Korea is the “Phone Replacement Service,” launched in partnership with telecommunications provider #LG Uplus. This service allows users to replace their smartphones—whether due to a malfunction or simply a change of heart—by paying premiums for a set subscription period. While traditional “mobile phone insurance” required customers to visit a repair center in person and then file a claim with the insurer after an accident, the Phone Replacement Service allows customers to simply apply online and receive a replacement smartphone within six hours in Seoul. By adopting a solution that focuses on “protection” rather than “compensation” after an accident, the company minimizes consumer inconvenience.
In launching this product, BoltTech Korea designs insurance product lines using artificial intelligence (AI) and operates the service by utilizing “application programming interfaces” (APIs) tailored to online and offline sales channels. From the customer’s perspective, it appears as though partner companies like LG Uplus are managing the insurance products, but in reality, BoltTech Korea is responsible for everything from product and system design to overall platform operation.
BoltTech Korea plans to expand its embedded insurance solutions beyond the current smartphone and home appliance markets into other sectors. CEO Ko stated, “Just as purchasing smartphone insurance or travel insurance—once unfamiliar concepts—has become commonplace, embedded insurance will begin to be applied to new industries in the future,” adding, “We plan to expand our business scope into e-commerce, mobility, and healthcare.”
Efforts to expand into the corporate insurance market are also taking shape. BoltTech Korea is currently working with LG Electronics to build an AI-based insurance integration platform. CEO Ko explained, “Our U.S. subsidiary operated a business model that reduced insurance premiums by proactively replacing components at risk of flooding or leaks using IoT sensors.” He added, “In Korea, we plan to launch a platform that utilizes LG Electronics’ AI CCTV ‘EVA’ solution to preemptively analyze risk data from corporate workplaces and lower insurance premiums.”
As the embedded insurance business gains traction, financial performance is also improving. Last year, BoltTech Korea’s revenue reached 81.2 billion won, an 11.4% increase from the previous year (72.9 billion won). Operating profit totaled 14.2 billion won, approximately five times higher than the previous year (3.2 billion won).
CEO Ko’s strategy is to steadily develop the business currently operating in Korea and expand its influence by introducing it to the global market. He said, “Among BoltTech’s 39 subsidiaries worldwide, the Korean subsidiary holds a significant position, ranking among the top three in terms of revenue,” adding, “We will export and disseminate the business model developed domestically to the global market.”