Implementation of Erroneous Remittance Return System from July... Improvement in Depositor Protection Level

Financial Services Commission Announces Legislative Notice for Partial Amendment of the Enforcement Decree of the Depositor Protection Act

[Asia Economy Reporter Kwangho Lee] Starting from July this year, money sent by mistake can be refunded through the return support system of the Korea Deposit Insurance Corporation (KDIC).

The Financial Services Commission announced on the 9th that it has publicly notified a partial amendment draft of the "Enforcement Decree of the Depositor Protection Act" based on this content.

This amendment draft of the enforcement decree was prepared to specify the delegated matters in the amended law for the introduction of the mistaken remittance return support system and the necessary matters for law enforcement.

Additionally, the amendment draft includes other necessary adjustments to the deposit insurance system.

Currently, KDIC selects the "average interest rate of 1-year fixed deposits at banks" as one of the upper limit criteria for the interest rate applied to interest amounts when financial companies go bankrupt and deposit insurance payments are made.

However, since the average interest rate of banks is applied to the entire industry, it has been difficult to reflect the characteristics of products handled by each sector and market conditions.

Subsequently, KDIC will revise the legal basis so that when calculating deposit insurance payments, it is not limited to the average interest rate of 1-year fixed deposits at banks, but can decide the applicable interest rate considering the characteristics of each sector and market conditions.

A Financial Services Commission official expressed hope that "the interest rate applied when paying deposit insurance to depositors, etc., will be more realistic, and the level of depositor protection will be reasonably improved."

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