[2024 National Audit] Yoo Jae-hoon, President of KRX, "No Differential Deposit Protection Limits by Industry"

Yu Jae-hoon, President of the Korea Deposit Insurance Corporation, expressed a negative stance on raising the deposit insurance limit differently by industry.

On the afternoon of the 14th, at the National Assembly's National Assembly Budget Office hearing held at the Busan International Finance Center (BIFC), President Yu stated, "I believe it is right not to differentiate the deposit insurance limit by industry in accordance with international standards. It could confuse consumers."

However, he expressed concern that raising the deposit insurance limit could lead to a 'money move' phenomenon toward non-bank sectors, which generally offer higher interest rates than commercial banks.

He added, "There has been no proactive increase because there has been no large-scale crisis like the foreign exchange crisis in the past 24 years. While an increase is necessary, we recognize that the timing and method are the issues and are preparing accordingly."

[Image source=Yonhap News]