Gov¡¯t to launch partial deposit insurance system next year

The government will proceed with the implementation of the partial deposit insurance system, which partially guarantees deposits in case of failures of financial institutions, from January next year as originally planned. However, the initial ceiling of 20 million won per person will increase to 50 million won per person. Moreover, a graded deposit insurance system will also be implemented for 70%-90% of deposits exceeding 50 million won but less than 100 million won in an attempt to minimize the shock that the system will cause to the financial market.

The Ministry of Finance and Economy plans to submit the reform bill on the deposit insurance system on Friday after a discussion with the ruling Millennium Democratic Party.

In this regard, Finance-Economy Minister Jin Nyum strongly asserted at a meeting with reporters that the partial deposit insurance system would proceed as planned starting January next year.

However, a government official would not rule out the possibility that the implementation of the system could be delayed in the process of discussions between the government and the ruling party. The MOFE predicted that the system's increased ceiling would alleviate the insecurity in the financial market expected from its implementation next year.