Ex-KSD Chairman Yoo Jae-hoon Takes Helm of KDIC

President Yoo Jae-hoon of Korea Deposit Insurance Corp. delivers his inaugural speech at an inauguration ceremony at KDIC headquarters on Nov. 21. (Photo: KDIC)

Former Korea Securities Depository (KSD) Chairman Yoon Jae-hoon took office as the new president of Korea Deposit Insurance Corp. (KDIC) on Nov. 21.

In his inaugural speech, new KDIC President Yoo said he will devote himself to introducing a financing safety account to fulfill its duties as an institution to take preemptive steps to cope with a crisis.

He also spoke of two other core tasks - overhauling a fund regime to raise effectiveness and sustainability of the deposit insurance system and protecting financial consumers from dangers of financial convergence and digitalization.

President Yoo held major positions, such as standing commissioner of the Securities and Futures Commission and director-general of the Treasury Bureau at the Ministry of Economy and Finance (MOEF) and chairman of Korea Securities Depository.

President Yoo picked the introduction of a financing safety account as KDIC’s core task amid a rising sense of crisis, caused by the straining financial market.

In the speech, he said, “Amid the situation of widening of variability in the financial and foreign currency markets, caused by steep interest hikes, coupled with price hikes, (the national economy) is facing with multiple crises with rising fears over the declining real economy.”

KDIC will devote itself to introducing a financing safety account to fulfill its role as an institution to cope with crises, he said.

President Yoo said, “The government is seeking to make a revision of the Act on Protecting Depositors, which would call for the installment of a financing safety account to preempt the contamination of a crisis, caused by the stiffening of the financial market.”

He called for KDIC to make preparations for the parliament’s discussion of the revision of the Act on Protecting Depositors and taking follow-up steps.

President Yoo stressed the need for overhauling the scope of protecting depositors and deposit insurance premiums based on consensus of the financial business community.

A plan to overhaul the matters will be worked out by next August by fully gathering views from stakeholders with a task force team, inaugurated in March, taking the initiative.

KDIC Returns 5 Billion Won in Erroneously Transferred Money as of August

Korea Deposit Insurance Corp. (KDIC) had retrieved 4.78 billion won in 3,682 cases as of the end of August under a system of supporting the return of erroneously transferred money, which made its debut on July 6, 2021.

Total cases consisted of 3,694 cases involving voluntary return and the remaining 168 cases involving payment orders.

Owners who erroneously transferred money had 4.59 billion won retrieved, except related costs.

Voluntary return cases mean retrieving wrongly transferred money and returning it to the original owners through informing recipients of wrong transactions and guidance.

Payout order cases means a court’s order requiring recipients of wrong transactions to return erroneously transferred money in the case they refuse to do it on a voluntary basis.

A total of 12,669 applications worth a combined 18.4 billion won had been made as of the end of August 2022 since the inauguration of the system of supporting the return of erroneously transferred money.

The figures represent 937 cases or 1.35 billion won on average monthly. Looking into erroneously transferred money amounts, cases worth between more than 100,000 won and less than 500,000 won accounted for 36.3 percent or 4,604 cases.

During the same period, 5,802 cases were recognized as the subject of erroneous transactions, 3,862 cases of which were returned. It means that the figures represent about 297 cases or 370 million won on average monthly.

The rate of retrieving erroneously transferred money is 96 percent, and the required time between applications and actual retrieval averages 44.1 days.