Korea Deposit Insurance Corp. (KDIC) conducted the KDIC First Move 2017, an exercise to cope with a crisis in connection with the Eulzi Korea-U.S. Joint Military Training from Aug. 21-23.
The crisis training exercise was centered on joint policy cooperation among financial institutions to recover financial facilities’ operations as fast as possible in a time of crisis for the financial institutions in Korea, with KDIC acting as the control tower.
The joint training for the financial institutions was conducted with the participation of the Financial Services Commission, the Financial Supervisory Service, the Bank of Korea, and the KDIC. Each financial institution announced its own plan to cope with a crisis involving damages to financial institutions and to come up with a plan to aid them.
The joint exercises for depositor protection institutions were conducted with savings institutions, including MG Korea Federation of Community Credit Cooperatives, the National Agricultural Cooperatives Federation (NACF), the National Fisheries Cooperatives Federation, and the National Forestry Cooperatives Federation and KDIC. The participants shared ideas on ways to recover the public trust of the deposit systems in a time of crisis, and methods to cope with such situations. They shared know-how on the means to recover lost depositories.
The IMF advises countries to conduct regular crisis simulation exercises on their financial safety institutions in order to maintain trust in the financial system in a time of crisis. In the meantime, KDIC also carried out an exercise during the joint exercise period to cope with a disruption in the operation of financial facilities during the crisis, in addition to the joint training by financial institutions.
The disruption exercise involved the relocation of a financial fund management to local areas so they can come to the aid during extraordinary times and resume their operation. The simulation involved moving equipment to maintain monetary fund management, including documents and personnel, to local facilities.
KDIC plans to upgrade its crisis management system and strengthen the joint training of domestic financial institutions against various crisis factors. The KDIC held ‘One Asia with KDIC’, a three-day global training program on deposit insurance scheme for officials from overseas deposit insurers from June 20 to 22 at the KDIC Global Academy, located in Chungju, Korea.
A total of 24 officials from deposit insurers in nine countries including Cambodia, Indonesia, Laos, Mongolia, Myanmar, the Philippines, Taiwan, Thailand, and Vietnam participated in the program. Starting as early as 2010, the KDIC has provided consultation, seminar and presentation on deposit insurance-related matters to officials in 16 countries through the Global KDIC Knowledge Sharing Program, namely KSP.
Based on the experiences of KSP for years, the KDIC is organizing an ongoing training program and has opened a training institute, the KDIC Global Academy, in April, which would enable the smooth implementation of the program.
Particularly, it introduced a new learning method called “Peer Benchmark” whereby participants from various countries will break into small groups, discuss freely the given topic and learn from one another. The KDIC plans to set up some ten training programs tailored to fit the needs of each participant country and to help each country to build its own curriculum suitable for its unique institutional environment and interests. In the long term, the KDIC will expand the training program to invite not only deposit insurers in Asian countries, but also countries in Africa and South America which plan to newly introduce or improve deposit insurance system.