Suhyup Mutual Finance Depositor Protection Fund Contribution Target Reached: 30~100% Insurance Premium Reduction

Partial Amendment to the Enforcement Decree of the Act on Prevention of Insolvency and Structural Improvement of Fisheries Cooperatives Passed at the State Council Meeting

Ministry of Oceans and Fisheries Projects "22.8 Billion KRW Insurance Premium Reduction"

[Asia Economy Reporter Joo Sang-don] Going forward, the Fisheries Cooperative Mutual Finance Depositor Protection Fund will reduce insurance premiums by 30-100% if the target fund accumulation is achieved.

On the 18th, the Ministry of Oceans and Fisheries announced that the partial amendment to the Enforcement Decree of the Act on Prevention of Insolvency and Structural Improvement of Fisheries Cooperatives, containing this provision, was passed at the Cabinet meeting and will be enforced on the 19th.

The recently passed partial amendment to the Enforcement Decree includes specific criteria for insurance premium reductions delegated by the law, following the introduction of the target fund system for the Mutual Finance Depositor Protection Fund under the amendment to the Act on Prevention of Insolvency and Structural Improvement of Fisheries Cooperatives on February 18 this year.

The Mutual Finance Depositor Protection Fund is a fund established to respond to situations where cooperatives engaged in credit or mutual aid businesses are unable to pay deposits or other claims due to bankruptcy or other reasons, and to promote the sound development of cooperatives. The target fund system sets a target amount for the fund accumulation to maintain an appropriate level, and when this target is reached, it reduces the insurance premiums paid by cooperatives in each district, considering the scale of the fund's income and expenditure.

According to the amendment to the Enforcement Decree, if the fund accumulation reaches the target size as of the end of the previous fiscal year, insurance premiums will be reduced by 30-100% depending on the range. If the upper limit is reached, insurance premiums will be exempted.

In addition, the amendment includes measures such as ▲actions to be taken if timely corrective measures for the management normalization of insolvent cooperatives are not completed within the period ▲grounds and procedures for disqualification, avoidance, and recusal of committee members to enhance the fairness of the Fund Management Committee operation ▲delegation of authority regarding designation, management, and cancellation of management-target cooperatives to the head of the managing institution (National Federation of Fisheries Cooperatives).

Lee Kyung-gyu, Director of Fisheries Policy at the Ministry of Oceans and Fisheries, stated, "With the implementation of the target fund system from the 19th, it is expected that about 22.8 billion KRW in insurance premium reductions will occur in the second half of this year alone," adding, "This will lead to improvements in cooperative management, and the resulting benefits are expected to return entirely to the fishers."

This content was produced with the assistance of AI translation services.