Chairman Kim Byun-hwan: "Forecast Limit to 100 Million Won After PF Stabilizes"

[Image source=Yonhap News]

Kim Byung-hwan, Chairman of the Financial Services Commission, stated that after resolving the insolvency issues in savings banks and mutual finance sectors, it is necessary to raise the deposit insurance limit from the current 50 million won to 100 million won.

On the morning of the 26th, Kim Byung-hwan attended the full meeting of the National Assembly's Political Affairs Committee and said, "It has been quite a long time since the deposit insurance limit was set at 50 million won, so I agree with the direction that it should be raised," but added, "However, there is a timing issue, and if the limit is raised to 100 million won, there could be capital movement between financial sectors."

He explained, "(Capital) could flow into banks or to the secondary financial sector such as savings banks," and added, "Whichever way it goes, if funds concentrate on one side, it could pose a risk."

He further stated, "I think it would be better to raise the deposit insurance limit after stabilizing issues such as real estate project financing (PF) problems and the soundness of the secondary financial sector."

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