New KDIC President Explains 3 Key Tasks during Inauguration Ceremony

New President Kim Seong-sig of Korea Deposit Insurance Corporation (KDIC) delivers his inaugural speech at an inauguration ceremony at KDIC headquarters in Seoul on Jan. 7. (Photo: KDIC)

A ceremony was held in honor of the inauguration of new KDIC President Kim Seong-sig on Jan. 7.

In his inaugural address, the new KDIC president emphasized three key tasks — strengthening preemptive crisis response capabilities, reforming the deposit insurance system into a future-oriented one and protecting financial consumers.

KDIC stands for Korea Deposit Insurance Corporation.

To strengthen KDIC’s preemptive crisis response capabilities, Kim called for the completion of the introduction of the Financial Stability Account System, a reorganization of the Insolvent Company Reorganization System and an improvement in the Recovery and Resolution Plan (RRP) and the Differential Insurance Premium Rate System for large financial institutions.

As for reforming KDIC for future-oriented deposit insurance systems, Kim emphasized making an improvement to Korea’s deposit insurance premium rate system to reflect systemic changes.

Kim emphasized KDIC employees making efforts to eliminate blind spots in the protection of financial consumers, such as establishing a customized deposit insurance system that reflects the characteristics of each industry and financial consumer, and protecting new financial products in digital financial environments.

Kim urged the establishment of an integrated collaborative system based on a healthy organizational culture, compliance with ethics for government officials, and social responsibilities as a public institution.

First, KDIC will strengthen its preemptive crisis response capabilities and faithfully carry out its role as a guardian for financial market stability. According to Kim, prevention is far more important than post-crisis management.

KDIC will finalize the introduction of the Financial Stability Account System to preemptively block the spread of a crisis in the financial market, and improve the existing resolution system to effectively reorganize insolvent financial institutions in times of crisis.

Furthermore, through close cooperation and information sharing among financial safety net organizations, KDIC will enhance the constant monitoring system to enable early identification and response to potential risks in the financial industry and financial companies in Korea, Kim said.

“KDIC will further refine the differential insurance premium rate system to encourage financial companies to pursue sound management practices,” Kim said.

“We will do our utmost to ensure that the RRP System operates effectively as an effective means of preventing financial companies’ insolvency and promptly responding to their problems and crises on time.”

Second, KDIC will boost the effectiveness and sustainability of Korea’s deposit insurance system through a future-oriented reform.

“The year of 2026 is time to reexamine and proactively improve the deposit insurance system in response to economic growth and changes in the financial environment,” Kim explained.

As the operating deadlines for the Savings Bank Special Account and the Deposit Insurance Bond Redemption Fund come in 2026 and 2027, respectively, it is necessary to establish a blueprint for transforming the fund system including deposit insurance rates.

Moreover, to maximize the collection of public funds, KDIC will proceed with the sale of shares held by financial institutions without a hitch.

“We will do our utmost to minimize burdens on the Korean people through asset recovery and other measures,” Kim added.

Third, KDIC will further strengthen financial consumer protection to become a reliable financial partner for the Korean people.

“We will further advance the deposit insurance system to ensure practical protection from new risks facing financial consumers in digital financial environments,” Kim said.

“KDIC will establish a customized deposit insurance system that reflects the characteristics of each financial sector and financial consumer. Furthermore, we will strive to protect actual depositors by promoting the inclusion of new financial products in the scope of protection, to prevent blind spots in the protection sector due to the expansion of the capital market and the introduction of diverse financial products.”

KDIC will steadily improve the current Erroneous Remittance Refund System and publicize it to ensure it becomes more accessible to the people.

“We will continue to consider services which KDIC can provide to ensure adequate protection for financial consumers,” Kim continued. “At the same time, KDIC will strive to get rid of blind spots in financial consumer protection.”