Yoo Jae-hoon, President of Forecasting, "Strengthening Crisis Response System to Prepare for Uncertainty"

Yu Jae-hoon, President of the Korea Deposit Insurance Corporation, stated on the 2nd, "We will strengthen the crisis response system to wisely navigate through times of uncertainty and great transformation."

Yonhap News

In his New Year's address, President Yu said, "It is more important than anything else to develop adequate response capabilities to realistically possible crises and to make thorough preparations for changes."

He diagnosed, "This year, uncertainties will increase further due to the continuation of geopolitical conflicts such as the Ukraine war and Middle East disputes, as well as the intensification of US-China conflicts and the revival of protectionism following the inauguration of the Trump administration in the United States. For KDIC, a major turning point lies ahead with the special savings bank account in 2026 and the expiration of the repayment fund's duration in 2027."

Referring to the strengthening of the crisis response system, he emphasized, "The establishment of a financial stability account to enhance the financial market's crisis response capability and the improvement of the resolution system are the top priorities this year. We will focus on legislating to ensure that the financial stability account, which has a preemptive insolvency prevention function, and the resolution system improvements suited to the changed financial environment are not delayed."

Regarding the increase in the deposit protection limit, he said, "Before full implementation, practical preparations such as concretization through the revision of enforcement ordinances and related system maintenance are necessary, as well as thorough preparations including risk monitoring and the establishment of a response system to prepare for possible fund movements between industries."

President Yu also addressed the special savings bank account and the expiration of the repayment fund's duration, stating, "This is an issue that requires fundamental consideration of the basic framework of the fund system, including asset and liability management, review of appropriate target funds, and adjustment of deposit insurance premium rates. Comprehensive organizational response is important, from collecting domestic and international opinions to preparing legislation."