Kim Sung-sik, KDIC President: "We Will Do Our Best to Introduce the Financial Stability Account This Year"

Korea Deposit Insurance Corporation Reports to the Financial Services Commission

Kim Sung-sik, President of the Korea Deposit Insurance Corporation, stated, "We will do our utmost to introduce the Financial Stability Account, which aims to proactively prevent insolvency among financial institutions by providing liquidity support in times of financial market shortages."

On the afternoon of January 13, at the government annex building in Seoul, President Kim made these remarks during the 'Public Institution Work Report under the Financial Services Commission.' He said, "In the event of insolvency at a financial institution, we will swiftly resolve the insolvency and work to contain the spread of any crisis by introducing a rapid resolution system and improving the resolution framework."

He emphasized the importance of strengthening depositor protection, restructuring the fund system, and recovering support funds, announcing three key focus areas: ▲ a future-oriented fund system, ▲ enhanced protection for depositors, and ▲ the completion of resolution for insolvent financial institutions. He explained that, since the special account for savings banks established for resolving insolvent savings banks and the bond repayment fund set up to repay public fund debts are set to expire this year and next year, efforts will be made to ensure an orderly liquidation. He also mentioned that the corporation will review an appropriate deposit insurance premium rate reflecting environmental changes, such as the increase of the deposit protection limit to 100 million won.

To further strengthen depositor protection, the corporation will expand coverage to include quasi-deposit and new financial products, and has also proposed measures to support mutual finance sectors, such as increased inspection support for Saemaul Geumgo.

President Kim stated, "We plan to faithfully implement the national policy task of strengthening financial consumer protection by supporting debtor rehabilitation and enhancing support for the return of misdirected remittances." He added, "We will ensure the smooth execution of the resolution process, including the sale and contract transfer of Yebyeol Insurance, the bridge insurer for MG Insurance, and will rigorously pursue accountability for those responsible for insolvency."