Yoo Jae-hoon, president of Korea Deposit Insurance Corporation (KDIC), emphasized that the organization will strengthen its crisis response system in preparation for increased uncertainty and volatility in financial markets in the new year.
In addition, Yoo said he will thoroughly prepare for major systemic changes, such as raising the deposit protection limit and establishing a financial stability account.
“KDIC cannot relax due to uncertainty and volatility at home and abroad,” President Yoo said in his New Year’s message on Jan. 2.
“It is of utmost importance that KDIC develops appropriate response capabilities and prepares for changes.”
“Establishing a financial stability account and improving the resolution system are top priorities for this year, and we will work to enact legislation to ensure it takes place this year,” Mr. Yoo said.
“We should also thoroughly prepare for expected issues, such as system maintenance and risk monitoring in preparation for an increase in the deposit protection limit.”
In addition to raising the deposit protection limit, KDIC is also planning to make efforts to eliminate blind spots where financial consumers are not protected.
“We will increase the amount of support for the Mistakenly Sent Money Recovery Service to 100 million won and improve its convenience,” Yoo said, emphasizing that “we will also expand financial education services and strengthen support for mutual financial institutions such as Saemaul Savings Bank.”
Yoo also spoke about the expiration of the savings bank special account in 2026 and the repayment fund in 2027.
“It is necessary to prepare not only for the handling of assets and liabilities, but also to think about a fundamental framework of the funding system such as the appropriate target fund, in advance,” Yoo added. “It is important to take a company-wide response, from preparing a plan to collecting internal and external opinions to preparing a bill.”
The plan is to build a system for KDIC and upgrade KDIC’s IT-based internal control system.
“We need to create a smart and robust Deposit Insurance Corporation and demonstrate global leadership as a board member of the International Association of Deposit Insurers (IADI),” Yoo said.
Yoo concluded by referring to Swiss soldiers that served as the Papal Guard, saying, “We have been trusted by the financial market and the Korean people for our roles in financial restructurings during the IMF foreign exchange crisis and a savings bank fiasco. We will steadily show our faith and valor.”
Establishment of Digital Innovation Department
KDIC announced on Jan. 16 that it implemented an organizational reorganization with a focus on building a digital KDIC in the first half of 2025.
First of all, KDIC reorganized the existing Information Protection Office’s two teams into the Digital Innovation Department to strengthen its digital and IT divisions.
KDIC also established the Funds System Reorganization Team under the vice president to effectively respond to the reorganization of the deposit insurance fund system due to the termination of the Savings Bank Special Account in 2026 and the Repayment Fund in 2027.
In addition, the Digital Property Investigation Team was established due to a revision of the Depositor Protection Act, which was enacted in October last year and provided the basis for investigations of virtual asset operators’ property.
Acquisition of Certification as Excellent Disaster Reduction Company
KDIC announced on Jan. 3 that it obtained an “excellent” disaster reduction company certification organized by the Ministry of the Interior and Safety.
The certification is a system that awards certificates to excellent companies by evaluating the status of the Disaster Reduction Activity Management System to maintain the core business of the organization in disaster situations.
Earlier this year, KDIC established the Disaster Reduction Activity Management System by preparing manuals, procedures, and guidelines for each of its core businesses and has continued its efforts to maintain and improve the system through training, internal audits, management reviews and external audits.
In August, all employees participated in a business continuity planning drill to strengthen their ability to respond to crises.
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