Korea Insurance Agent Commission Clawback & Net Income Calculator

Model a South Korean insurance agent’s written commission and clawback scenario over 24 monthly contract cohorts. The dedicated bilingual calculator combines up to three product groups, monthly new contracts, monthly premium, upfront commission multiples, trail commission, user-entered lapse rates, four contract-age clawback bands, settlement-support payment and repayment months, business costs, actual social-insurance cash, a tax reserve, living costs and starting cash. It reports monthly and total net income, deficit months, peak three-month expected clawback, an immediate full-lapse stress exposure, ending household cash, a months 13–24 living-target production threshold and a first-year 12-times document-check signal without forecasting production, deciding a clawback debt, calculating final tax or determining compliance.

1. Commission schedule by product group

Replace every sample value with your written appointment agreement and commission schedule. Trail commission starts at contract month 2.

Product group A

Upfront clawback rate by contract age

Product group B

Upfront clawback rate by contract age

2. Settlement support and clawback month

3. Costs, tax reserve and living target

24-month net income and clawback summary

This repeats your production and lapse assumptions; it does not forecast sales, establish a clawback debt, or calculate final tax.

24-month net income

₩91,132,684

After clawbacks, business costs, insurance and tax reserve

Ending cash after living costs

₩29,132,684

Lowest balance ₩9,941,800

Peak 3-month expected clawback

₩4,520,165

From the lapse scenario and entered support-clawback month

Contracts needed for living target

6/month

Current product mix and average net income in months 13–24

Total commission income

₩169,071,970

Upfront plus trail commission

Total clawback

₩15,913,429

Contract plus settlement-support clawback

Peak immediate full-lapse exposure

₩44,581,373

A stress exposure, not an established debt

Months below living target

3 months

Cumulative cash stays non-negative

First-year 12× document-check signal

From July 1, 2026, Korea extended the first-year 1,200% rule to payments from GAs to their agents. The figures below only combine upfront commission with 11 months of trail commission before lapses; they omit support payments, incentives and exceptions and cannot determine compliance.

Product group A

Upfront per contract ₩800,000

10.20×

Simple reference at or below 12×

Product group B

Upfront per contract ₩900,000

8.20×

Simple reference at or below 12×

24-month cash-flow schedule

Scroll horizontally to compare clawback months, after-living cash flow and cumulative cash.

Insurance agent 24-month contracts, commission, clawback, costs, net income and cumulative cash
MonthNewActiveExpected lapsesUpfrontTrailSupportClawbackBusiness costSocial insuranceTax reserveNet incomeAfter livingCumulative cash
1000₩0₩0₩5,000,000₩0₩1,200,000₩500,000₩330,000₩2,970,000-₩30,000₩9,970,000
276.90.1₩5,800,000₩0₩0₩98,000₩1,900,000₩500,000₩330,200₩2,971,800-₩28,200₩9,941,800
3713.60.2₩5,800,000₩157,400₩0₩194,220₩1,900,000₩500,000₩336,318₩3,026,862₩26,862₩9,968,662
4720.30.4₩5,800,000₩312,246₩0₩288,694₩1,900,000₩500,000₩342,355₩3,081,197₩81,197₩10,049,859
5726.80.5₩5,800,000₩464,583₩0₩353,626₩1,900,000₩500,000₩351,096₩3,159,861₩159,861₩10,209,720
6733.20.6₩5,800,000₩614,456₩0₩417,382₩1,900,000₩500,000₩359,707₩3,237,366₩237,366₩10,447,086
7739.60.7₩5,800,000₩761,907₩0₩479,984₩1,900,000₩500,000₩368,192₩3,313,730₩313,730₩10,760,817
8745.80.8₩5,800,000₩906,980₩0₩515,110₩1,900,000₩500,000₩379,187₩3,412,683₩412,683₩11,173,500
9751.90.9₩5,800,000₩1,049,717₩0₩549,601₩1,900,000₩500,000₩390,012₩3,510,104₩510,104₩11,683,604
10757.91.0₩5,800,000₩1,190,158₩0₩583,469₩1,900,000₩500,000₩400,669₩3,606,020₩606,020₩12,289,623
11763.71.1₩5,800,000₩1,328,344₩0₩616,726₩1,900,000₩500,000₩411,162₩3,700,455₩700,455₩12,990,079
12769.51.2₩5,800,000₩1,464,314₩0₩3,149,384₩1,900,000₩500,000₩171,493₩1,543,436-₩1,456,564₩11,533,515
13775.21.3₩5,800,000₩1,598,107₩0₩681,454₩1,900,000₩500,000₩431,665₩3,884,988₩884,988₩12,418,503
14780.81.4₩5,800,000₩1,729,762₩0₩689,327₩1,900,000₩500,000₩444,043₩3,996,391₩996,391₩13,414,894
15786.31.5₩5,800,000₩1,859,315₩0₩697,059₩1,900,000₩500,000₩456,226₩4,106,031₩1,106,031₩14,520,925
16791.81.6₩5,800,000₩1,986,804₩0₩704,652₩1,900,000₩500,000₩468,215₩4,213,937₩1,213,937₩15,734,862
17797.11.7₩5,800,000₩2,112,265₩0₩712,109₩1,900,000₩500,000₩480,016₩4,320,141₩1,320,141₩17,055,003
187102.31.8₩5,800,000₩2,235,732₩0₩719,432₩1,900,000₩500,000₩491,630₩4,424,670₩1,424,670₩18,479,673
197107.51.9₩5,800,000₩2,357,241₩0₩726,623₩1,900,000₩500,000₩503,062₩4,527,556₩1,527,556₩20,007,228
207112.51.9₩5,800,000₩2,476,825₩0₩733,687₩1,900,000₩500,000₩514,314₩4,628,825₩1,628,825₩21,636,053
217117.52.0₩5,800,000₩2,594,519₩0₩740,624₩1,900,000₩500,000₩525,389₩4,728,505₩1,728,505₩23,364,558
227122.42.1₩5,800,000₩2,710,354₩0₩747,437₩1,900,000₩500,000₩536,292₩4,826,625₩1,826,625₩25,191,184
237127.22.2₩5,800,000₩2,824,363₩0₩754,128₩1,900,000₩500,000₩547,023₩4,923,211₩1,923,211₩27,114,395
247131.92.3₩5,800,000₩2,936,578₩0₩760,701₩1,900,000₩500,000₩557,588₩5,018,290₩2,018,290₩29,132,684

Do not treat this result as a contractual debt

  • Insurance Business Act Article 85-3 prohibits clawbacks without just cause, but an individual clawback still depends on the agreement and facts.
  • Confirm the clawback event, contract-age date, death termination, transfer or dismissal, set-off order and repayment terms in writing.
  • The tax-reserve rate and social-insurance cash are not filing or billing results; replace them with your own current records.

Related calculators

What does this Korea insurance-agent calculator do?

An insurance agent’s cash income is not just the upfront commission shown for the current month. Older contract cohorts may add trail commission, while lapses can trigger a clawback under the written appointment agreement and payment rules. A settlement-support payment can also become a large later outflow if the user’s selected repayment scenario occurs.

This calculator builds up to three product groups as monthly cohorts for 24 months. It applies the entered lapse rate and the clawback band for each cohort’s contract age, then deducts business costs, actual social-insurance cash, a user-selected tax reserve and essential living costs. It is a scenario model, not a forecast of sales, lapses, tax, insurance bills or a legally enforceable debt.

Useful decision moments

  • Starting as a Korean insurance agent and funding the training or no-production period
  • Moving to another insurer or GA and comparing settlement support with existing clawback exposure
  • Explaining why a large commission statement does not produce the same increase in bank cash
  • Setting a household buffer for the next 12 to 24 months
  • Preparing specific written questions about payment and clawback rules

Documents to collect before entering numbers

Appointment agreement

Check appointment, termination, dismissal, set-off, return and repayment clauses.

Commission payment rules

Identify each product group, payment month and unit for upfront, trail and incentive payments.

Contract-age clawback table

Separate lapse, withdrawal, invalidity, expiry and death-termination treatment.

Settlement-support agreement

Confirm the measurement period, recognized production, transfer or dismissal event and repayment method.

Recent commission statements

Replace samples with actual new contracts, active contracts, trail commission and clawbacks.

Cash-cost records

Collect transport, lead or database, office and actual social-insurance cash by month.

Do not substitute an online average or another agent’s schedule for your own documents. Terms can differ by insurer, product, contract date, channel, incentive and appointment agreement.

Input meanings and sample values

The interface starts with two editable product groups. Set the second group’s new contracts to zero for a one-group plan. Keep upfront commission, monthly trail commission and clawback percentages in their separate units.

Insurance agent clawback calculator inputs, samples and entry rules
InputSample or meaningEntry rule
New contracts and monthly premium5 cases / KRW 100,000 for group AUse the unit shown in the written commission schedule
Upfront commission multiple8× for group AUpfront per contract = monthly premium × multiple
Trail commissionKRW 20,000 per active contractThe model starts trail commission in contract month 2
Monthly lapse scenario2% for group AA user-entered sensitivity, not a forecast
Four clawback bandsMonths 1–3, 4–6, 7–12 and 13–24Enter rates as a percentage of upfront commission
Settlement supportAmount, payment month, clawback month and rateThe calculator does not decide performance compliance
Costs and reservesFixed cost, per-contract cost, insurance and tax reserveUse actual cash records rather than an industry average
Living target and starting cashMonthly essential spending and liquid cashUsed to find deficit months and the lowest balance

How to use the calculator step by step

  1. Copy each product group’s monthly premium, upfront multiple, trail commission and contract-age clawback bands from the written payment rules.
  2. Enter a realistic monthly contract count and an explicit lapse scenario; use zero contracts for an unused product group.
  3. Add any settlement-support receipt and the month and percentage that would be repayable under the scenario you want to test.
  4. Enter monthly business costs, actual social-insurance cash, a tax-reserve rate, essential living costs and starting liquid cash.
  5. Compare the baseline with a higher-lapse or lower-production version, then use the lowest balance, reserve exposure and deficit months to prepare your next action.

How the 24-month cohort model works

1. Add a new cohort each month

After the initial no-production period, the model adds the entered new contracts for each product group. Upfront commission equals monthly premium multiplied by the upfront multiple. Trail commission starts at contract age two and applies to opening active contracts.

2. Apply month-end lapses and clawbacks

Expected lapses equal opening active contracts multiplied by the entered monthly lapse percentage. Each lapsed amount is multiplied by upfront commission per contract and the applicable months 1–3, 4–6, 7–12 or 13–24 clawback rate. Fractional contracts are expected values; cash outputs are rounded to whole KRW.

3. Convert commission into household cash

The model deducts contract and support clawbacks, fixed and variable business costs and the entered social-insurance cash. It applies the tax reserve only to a positive remaining amount, then subtracts essential living costs and accumulates the result from starting cash.

Core formulas

Monthly clawback = Σ expected lapses × upfront commission per contract × age-band rate
Net income = upfront + trail + support − clawbacks − business costs − insurance − tax reserve
Cumulative cash = starting cash + Σ net income − Σ living costs

Worked 24-month sample

The sample uses five group-A and two group-B contracts per productive month after one no-production month. Group A uses KRW 100,000 monthly premium, 8× upfront commission, KRW 20,000 monthly trail and a 2% monthly lapse scenario. Group B uses KRW 150,000 premium, 6× upfront, KRW 30,000 trail and a 1% lapse scenario. Both use 100%, 70%, 40% and 10% clawback bands.

The scenario receives KRW 5,000,000 settlement support in month 1 and repays 50% in month 12. It also enters KRW 1,200,000 fixed monthly business cost, KRW 100,000 per new contract, KRW 500,000 monthly social-insurance cash, a 10% tax reserve, KRW 3,000,000 living costs and KRW 10,000,000 starting cash.

Total commission

KRW 169,071,970

Upfront plus trail commission

Total clawback

KRW 15,913,429

Includes KRW 2,500,000 support repayment

Total net income

KRW 91,132,684

After costs, insurance and tax reserve

Ending household cash

KRW 29,132,684

Includes KRW 10,000,000 starting cash

Peak three-month clawback

KRW 4,520,165

From the entered lapse and support scenario

Living-target production

6 contracts/month

Current mix and months 13–24 average

Do not read this as a guarantee that seven contracts are safe. Month 12 falls to about KRW 1.54 million of net income because the support clawback is due, producing an after-living shortfall of about KRW 1.46 million. By month 24, trail commission is larger, but the stress exposure if every active contract lapsed that month has also grown to about KRW 44.58 million. The page is designed to show income growth and contingent exposure together.

Three ways to use the results

Cash buffer before a move

Enter the exact no-production months and settlement-support repayment month. Focus on the lowest cumulative cash, not the headline support payment.

Lapse stress test

Run a recent-statement baseline, then increase the monthly lapse rate by one percentage point or double it. Compare total clawback, the peak three-month amount and deficit months.

Product-mix sensitivity

Change the product-group volumes without treating the result as a sales recommendation. A larger upfront payment can improve short-term income while increasing exposure per lapse.

South Korean law and the 2026 commission changes

No-just-cause clawback is not the same as every clawback

Insurance Business Act Article 85-3 prohibits failure to provide the appointment agreement, failure to perform its terms, withholding or delaying due commission without just cause and clawing back paid commission without just cause. The calculator does not decide whether the entered clawback has just cause, whether a term is enforceable, or what a court, regulator or dispute process would conclude.

July 1, 2026 first-year 1,200% check

The Financial Services Commission states that contracts made from July 1, 2026 bring payments from a GA to its agents within the first-year limit of twelve times monthly premium. The on-screen simple multiple combines upfront commission and eleven months of pre-lapse trail commission only. It excludes settlement support allocation, incentives, indirect support, product or channel scope and exceptions, so it is a document-check signal rather than a compliance decision.

Re-enter schedules for 2027 and later contracts

The June 30, 2026 FSC notice describes four-year commission distribution for 2027–2028 and seven-year distribution from 2029. Future payment timing may therefore differ from a 2026 agreement. This calculator never overwrites user inputs with a future schedule; obtain the rules that apply on the contract date and enter them again.

Interpretation limits and practical cautions

  • Separate expected three-month clawback from full-lapse exposure. The first follows the entered lapse scenario; the second combines an extreme all-active-contracts lapse with support received but not yet repaid
  • Treat settlement support as non-recurring. The contracts-needed result excludes both the support receipt and repayment when averaging months 13–24
  • Do not call the tax reserve final tax. Taxable timing, deductible expenses and national and local income tax require the user’s books and filing
  • Enter actual social-insurance cash once. Do not duplicate another platform-worker insurance estimate
  • Check obligations after month 24. The MVP cannot model a later clawback or trail payment unless it falls within its 24-month horizon
  • Remember that fractional lapses are expected values. One real contract lapses discretely, so compare the monthly maximum with a separate household buffer

Frequently asked questions

Is there one statutory insurance-agent clawback rate in Korea?

No universal rate is used here. The Act prohibits clawback without just cause and the supervision regulation sets payment-rule and execution boundaries, but the monthly rates must come from the user’s appointment agreement and commission rules.

Can a company retention rate forecast my future income?

No. The monthly lapse percentage is a repeated sensitivity input, not a forecast of customers, personal production or a company’s retention experience.

Does the calculator decide whether I met settlement-support production?

No. Recognized production, the measurement period, maintenance, transfer, dismissal and exceptions differ by agreement. Enter only the repayment month and rate you want to stress-test.

Does a simple multiple above 12× mean an illegal payment?

No. It triggers a document review only. Actual scope can include settlement support, incentives, payment timing, product and channel rules and exceptions that this simple reference does not classify.

Is net income the same as taxable business income?

No. This is cash-planning net income after entered clawbacks, costs, social-insurance cash and a user reserve. Taxable receipts, deductible expenses and final tax require books and filing records.

Should I leave the agency if the result is negative?

The calculator does not recommend a company, product or occupation. Identify the inputs causing the shortfall, then review contract duties, alternative income and household liquidity with qualified advisers.

Official sources and update boundary

The National Law Information Center OPEN API was checked on August 28, 2026. The current evidence is Insurance Business Act ID 001532, MST 265389, Article 85-3, and Insurance Business Supervision Regulation administrative-rule ID 21843, serial 2100000279112, Articles 4-31 and 4-32. The implementation dates were cross-checked against the Financial Services Commission’s January 14 and June 30, 2026 releases.

Run three versions using your own documents

Save a recent-statement baseline, then a lower and higher lapse scenario. Focus on the lowest cash balance and clawback peak before the highest-income month, and send the resulting questions to the insurer or GA for written confirmation.