"Preventing Saemaeul Geumgo Bank Run Recurrence" Ministry of the Interior and Safety-Financial Services Commission Strengthen Supervision

Strengthening Cooperation for Saemaeul Geumgo Soundness Supervision MOU
Establishing a System for Sharing Real-Time Monitoring Information

The Ministry of the Interior and Safety and the Financial Services Commission will strengthen cooperation to supervise the soundness of Saemaeul Geumgo, which experienced a 'bank run (mass withdrawal of deposits)' crisis last year.

On the 5th, the Ministry of the Interior and Safety and the Financial Services Commission signed a "Memorandum of Understanding to Strengthen the Cooperation System for Supervising the Soundness of Saemaeul Geumgo" at the Government Seoul Office.

According to the agreement, the Ministry of the Interior and Safety will establish the management soundness standards for Saemaeul Geumgo in consultation with the Financial Services Commission, in line with other mutual financial institutions.

Minister of the Interior and Safety Sang-min Lee (left) and Chairman of the Financial Services Commission Joo-hyun Kim are posing for a commemorative photo at the ceremony for strengthening the supervisory cooperation system of Saemaeul Geumgo held on the 5th at the Government Seoul Office in Jongno-gu, Seoul. Photo by Yongjun Cho jun21@

An information-sharing system between the Ministry of the Interior and Safety and the Financial Services Commission has also been established. The Financial Services Commission will receive regular and ad hoc information necessary for the ongoing supervision of Saemaeul Geumgo's management soundness from the Ministry of the Interior and Safety. The Ministry of the Interior and Safety will provide the Financial Services Commission with monitoring results of Saemaeul Geumgo based on information received from the Financial Supervisory Service and the Korea Deposit Insurance Corporation, as well as information related to the management soundness of other mutual financial institutions.

The Ministry of the Interior and Safety and the Financial Services Commission also agreed to mutually consult and decide on inspection plans, such as selecting inspection targets based on monitoring results, and post-inspection measures based on inspection outcomes.

Lee Sang-min, Minister of the Interior and Safety, stated, "Saemaeul Geumgo is an important community-based financial institution supporting small business owners and others. We will work closely with financial authorities to ensure that Saemaeul Geumgo grows soundly and becomes a trusted financial institution."

Kim Ju-hyun, Chairman of the Financial Services Commission, said, "Saemaeul Geumgo is a pillar of the low-income economy and holds considerable importance for the stability of our financial market. Therefore, we will cooperate actively and responsibly."

This agreement takes effect immediately upon signing. According to the agreement, the Financial Supervisory Service, the Korea Deposit Insurance Corporation, and the National Federation of Saemaeul Geumgo will sign a memorandum this month to form and operate an inspection consultative body to carry out actual inspection duties.

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