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Starting in September, the deposit protection limit will be raised to 100 million won. As a result, the protection limits for banks, credit unions, agricultural cooperatives, fisheries cooperatives, forestry cooperatives, Saemaeul Geumgo, retirement pensions, pension savings, and insurance accident payouts will all be increased accordingly.

The Financial Services Commission announced that it will hold a legislative notice period for the "Presidential Decree on Partial Amendments to Six Laws to Raise the Deposit Protection Limit" from May 16 to June 25. After approval by the Cabinet, the new system will be implemented starting September 1.

From September 1, 2025, if a financial institution or a mutual finance cooperative or credit union is unable to pay deposits due to bankruptcy or other reasons, deposits will be protected up to 100 million won.

Victims of Busan Savings Bank gathered in front of the Financial Supervisory Service in 2011. Depositors with losses exceeding 50 million won and subordinated bond investors affected by the suspension of Busan Savings Bank's operations demanded punishment for the financial authorities on that day.

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Customers gathered at the Nonhyeon-dong branch of Jungang Busan Savings Bank, an affiliate of Busan Savings Bank, which was ordered to suspend operations in 2011.

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Before the foreign exchange crisis at the end of 1997, Korea operated deposit protection limits for each financial sector separately, ranging from 10 million to 50 million won. During the foreign exchange crisis, full deposit protection was temporarily implemented for all financial sectors.

In 2001, to address moral hazard resulting from full deposit protection, the deposit protection limit was set at 50 million won. The Financial Services Commission explained that the limit is being raised now in consideration of the growth of the economy and the increase in deposit assets.

According to the "Depositor Protection Act," the deposit insurance corporation will raise the deposit protection limit to 100 million won not only for banks and savings banks whose deposits are protected by the deposit insurance corporation but also for mutual finance sectors whose deposits are protected by individual central associations under relevant laws.

In addition, the deposit protection limit for retirement pensions, pension savings (mutual aid), and insurance accident payouts (mutual aid payouts), which are protected separately from general deposits, will also be raised to the current level of 100 million won, taking into account the social security nature of these products and the trend of increasing scale of operation.

Meanwhile, the Financial Services Commission and the Korea Deposit Insurance Corporation plan to review the appropriate deposit insurance premium rate in response to the increase in protected deposits. However, considering that the financial sector is still bearing the costs incurred to resolve past financial insolvencies, the new deposit insurance premium rate will be applied starting with the premiums paid in 2028.