KDIC aims to expand scope of deposit insurance

• Published date: 08 March 2023
• Publication title: The Korea Times

The Korea Deposit Insurance Corporation (KDIC), a state-led company that insures deposits across the local financial industry, has unveiled its new strategic vision, aiming to expand the scope of deposits that it insures.

"The traditional deposit insurance system, which focuses on responding to situations with ex-post measures, cannot properly address future financial risks," Yoo Jae-hoon, president of the KDIC, said during a press conference held in central Seoul, Wednesday. "Foremost of all, the scope of financial consumer protection should be expanded, breaking the current protection regime centering on savings deposits."

He highlighted that the deposit insurance agency should come out of the current system to offer better protection to a larger group of consumers, given that the total amount of deposits made in local financial sectors rose by more than 2.5 times during the past decade. The amount rose to 2,884 trillion won ($2180 billion) last year, from 1,161 trillion won logged in 2010. During the same period, the entire...