[New Year's Address] Kim Taehyun, President of the Korea Deposit Insurance Corporation, "Bold and Swift Reform of KDIC System"

Kim Tae-hyun, President of the Korea Deposit Insurance Corporation

[Asia Economy Reporter Song Seung-seop] “In the face of rapid changes in the internal and external environment, the Korea Deposit Insurance Corporation (KDIC) must fulfill its responsibilities as a key institution for financial stability and establish a system that can respond boldly and swiftly through a future-oriented deposit insurance system to provide stronger protection for financial consumers.”

KDIC President Kim Tae-hyun stated this in his New Year's address on the 3rd, outlining the key tasks for this year. The main tasks presented by President Kim are: ▲ strengthening the financial stability function of the deposit insurance system ▲ establishing financial order through recovery of support funds and accountability for insolvency ▲ enhancing financial consumer protection and fulfilling social responsibilities.

President Kim emphasized, “In the rapidly changing financial environment, it is necessary to strengthen the financial stability function of the deposit insurance system in three aspects (▲ expanding protection scope ▲ reinforcing proactive insolvency prevention ▲ enhancing sustainability).” He pointed out, “A deposit insurance system designed mainly for principal and interest guaranteed products has limitations in broadly protecting financial consumers and fully performing its role as a financial safety net.”

He continued, “There is a need to improve the system to enable normalization before insolvency through proactive financial support,” and stressed, “To advance the differential premium rate system, we will discover unique indicators that can precisely measure the management status of financial companies.”

He also noted, “Currently, a significant portion of the deposit insurance premiums paid by financial companies is used to replenish funds spent on restructuring insolvent financial companies in the past, and the portion actually accumulated as a fund for depositor protection is relatively small.” He added, “To establish an effective deposit insurance system, we plan to conduct a comprehensive review of the entire deposit insurance system, including protection limits, premium rates, and target fund levels, together with the Financial Services Commission by the end of August 2023, and derive improvement measures.”

Regarding the establishment of financial order, he repeatedly emphasized strictness. President Kim said, “We will continue efforts to recover public funds provided to invested financial companies,” and explained, “We will sell the assets of bankruptcy estates managed by the corporation as quickly as possible and operate them efficiently to maximize dividend recovery.” He also mentioned that the recovery of funds related to Kamco City will be “visualized through organic cooperation via the Korea-Cambodia Task Force and a phased recovery roadmap.”

On financial consumer protection and social responsibility, he expressed a commitment to strengthen and faithfully fulfill these roles. He promised, “To provide practical support for the vulnerable groups’ recovery, we will enhance the effectiveness of debt adjustment,” and “Through the expansion and reorganization of the ESG Promotion Committee, we will systematically implement tasks and strive to achieve tangible results.”

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