Financial Services Commission Conducts Disaster Response Drill to Prepare for Digital Bank Run

First Training After the Amendment of the Disaster Safety Act

On the 28th, the Financial Services Commission conducted the "2024 Financial Institutions Disaster Response Safety Korea Drill" to strengthen the disaster response capabilities of financial institutions. Nine related financial organizations, including the Financial Services Commission, the Financial Supervisory Service, and the Industrial Bank of Korea, participated in this drill.

The drill was conducted under the assumption of an electric vehicle fire occurring in the underground parking lot of the Industrial Bank of Korea headquarters, which paralyzed the headquarters' functions, and a digital bank run caused by the spread of related rumors. Notably, this was the first comprehensive disaster response drill conducted since the Financial Services Commission was designated as the lead agency for disaster management in financial institutions under the revised Enforcement Decree of the Disaster and Safety Act, which took effect in July this year.

Unlike previous drills that only prepared for disasters in the financial IT sector, this drill assumed an actual fire incident at a financial institution, with the Industrial Bank of Korea as the main training institution. On-site training was conducted, including fire situation awareness, situation dissemination and initial firefighting, evacuation and rescue activities, fire department dispatch, and fire suppression.

Kim Byung-hwan, Chairman of the Financial Services Commission, personally presided over the Central Accident Response Headquarters meeting and emphasized, "As seen in the case of Silicon Valley Bank's rapid collapse due to a digital bank run in March last year, even minor anxiety factors can lead to a financial system crisis," urging special caution. Silicon Valley Bank held assets worth $175 billion as of 2022 but quickly went bankrupt due to a digital bank run caused by customer anxiety.

Kim Sung-tae, President of the Industrial Bank of Korea, which participated as the main training institution, stated, "Disaster situations in financial institutions have a significant impact on the national economy," and added, "We will closely cooperate with the government and related organizations to establish a flawless disaster preparedness posture."

Based on the results of this drill, the Financial Services Commission plans to improve the "Standard Manual for Disaster Crisis Management in Financial Institutions," develop various crisis response scenarios, and conduct regular drills.

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