Forecasting and Overseeing the Resolution of Insolvent Financial Companies: Establishment of the 'Financial Stability Planning Department'

[Asia Economy Reporter Shim Nayoung] The Korea Deposit Insurance Corporation announced on the 19th that it has established a new Financial Stability Planning Department to oversee the resolution of insolvent financial companies by financial sector.

Previously, the functions were divided between the Financial System Improvement Department, which dealt with insolvencies in the banking, financial investment, and insurance sectors, and the Savings Bank Management Department, which handled savings bank insolvencies. However, a new Financial Stability Planning Department has been created to manage insolvent financial companies across all sectors.

Additionally, a "Financial Stability Account Legislative Support Task Force (TF)" has been established to prepare for temporary liquidity crises in financial companies. The Financial Stability Account is a permanent version of the emergency funding support system that has been temporarily operated during financial crises, and it is currently undergoing the legislative process.

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