The Korea Deposit Insurance Corporation announced on the 16th that it has notified 269 financial institutions of the differential evaluation grades and deposit insurance premium rates for the 2024 business year.
This year's evaluation results showed that the number of institutions receiving premium discounts, graded A+ and A, has decreased by 11 from last year to 42. The B grade has increased by one from last year, totaling 127 institutions. In contrast, the C+ and C grades, which are subject to additional premiums, increased by 11 compared to last year, totaling 100 institutions this year.
Since 2014, the corporation has been assessing the management risks of financial institutions and applying different deposit insurance premium rates for each company. Companies with an A+ grade receive a 10% discount, while those with an A grade receive a 7% discount. The B grade is subject to standard rates, but C+ grade incurs a 7% additional premium, and C grade incurs a 10% additional premium.
The corporation noted that banks are mainly concentrated in the A+ and A grades. Insurance companies and financial investment firms received B grades, while many savings banks received C+ and C grades.
The expected deposit insurance premium for the 2024 business year is 2.4773 trillion won. While insured deposits have increased by 25.7 billion won, the total deposit insurance premium has decreased by 37.5 billion won compared to the 2023 business year due to changes in evaluation grades and other factors.