이 누리집은 대한민국 공식 전자정부 누리집입니다.

한상넷

비즈니스 정보

Biz News Korea(Eng)

KDIC chief calls for higher cap on state coverage on consumer deposits

Collected: 2016.10.14

Distributed: 2016.10.17

Source: Go Direct

[KDIC chief executive Gwak Bum-gook]

State-run Korea Deposit Insurance Corp. (KDIC) chief executive Gwak Bum-gook on Thursday argued for the need to up the state-guarantee cap for financial consumers on their deposits should a financial institution go bankrupt.

Under the law unchanged for the last 16 years, the state covers up to 50 million won ($44,189) per an individual saving in a financial institution.

“Consumer deposit protection that has been capped since 2001 needs to be revised in consideration for rates and other terms within the context of the Depositor Protection Act,” he said during a parliamentary audit on state institutions.

Gwak may be suggesting the idea was being reviewed by the government as he previously served as director general of the Treasury Bureau at the Ministry of Strategy and Finance.

The industry projects bank savings could be covered up to 100 million won while keeping the cap intact for deposits in the non-banking sector.

Per capita state insurance against individual deposit was 1.6 times against per capita gross domestic product in Korea as of last year, much lower than 4.5 times in the United States, 2.6 times in Britain, and 2.5 times in Japan.

By Kim Gyu-sik and Chung Seok-woo

Read in Korean

List

Previous: Doosan Bobcat to go public on Nov 18 in scaled-back issues and pricing

Next: Recovery in oil prices in near horizon doubtful: WKF forum