Insurance Deposits, Accident Comp. Payouts Qualify for 50 Mln Won Insurance Coverage

President Yoon Suk-yeol presides over the 42nd Cabinet Meeting in which the amendment of the enforcement ordinances of the Act on the Protection of Depositors was approved on Oct. 10. (Photo: Yonhap News Agency)

The deposit insurance protection of 50 million won is being applied to pension savings, accident insurance payout and SME retiree pension fund deposits, apart from general deposits of commercial institutions.

The Financial Services Commission and Korea Deposit Insurance Corp. (KDIC) said the amendment of the enforcement ordinances of the Act on the Protection of Depositors, calling for the application of the deposit insurance coverage cap, was approved by the Cabinet on Oct. 10.

Defined contribution (DC) and individual retirement pension (IRP) retirement pension deposits are given the 50 million won insurance coverage, departing from the money of depositors with the same commercial companies.

The latest revision stipulates that pension savings (trust and insurance), a kind of social safety net, accident insurance payouts and SME retiree pension fund deposits, are given the 50 million deposit insurance coverage, apart from general deposits.

FSC and KDIC said the amendment will enable people to make preparations for their later life in a safe fashion and protect depositors suffering from unfortunate accidents.

The amendment will take effect upon proclamation. Similar amendments of individual acts on mutual finance circles handling pension and general mutual aid products will be made soon.

President Yoo Jae-hoon of Korea Deposit Insurance Corp. was elected as a member of the Executive Council of the International Association of Deposit Insurers (IADI) during the 22nd IADI Annual Meeting. KDIC President Yoo gives a presentation on Korea’s system risk management and deposit insurance regime at the annual meeting of IADI. (Photo: KDIC)

KDIC President Yoo Selected as IADI Executive Council Member

KDIC said on Dec. 11 KDIC President Yoo was elected as IADI’s Executive Council member at the IADI Annual Meeting in Boston, the United States, on Sept. 29.

IADI, established in Basel, Switzerland, is an international institution designed to legislate international rules on deposit insurance.

Earlier, KDIC President Yoo attended IADI’s Annual Conference as a panelist in Boston on Sept. 29, and he spoke on a theme on the scope of protecting depositors.