New Korea Deposit Insurance Corporation (KDIC) President Kim Seong-sik said on the 7th, "As a core institution of the financial safety net, I will do my utmost to more faithfully fulfill our role in protecting financial consumers." Kim began his term on the 1st, but held the inauguration ceremony that day due to a protest by the KDIC labor union blocking his entry to work.
At the inauguration ceremony, Kim said, "We will build a tailored deposit insurance system that reflects the characteristics of each financial sector and each financial consumer," adding, "We will also seek to include new financial products within the scope of protection to prevent blind spots in the protection area."
Kim said, "To block the contagion of financial market crises in advance, we will finalize the introduction of a financial stability account and improve the existing resolution regime so that we can effectively resolve failing financial firms in a crisis." The financial stability account is a system under which the KDIC provides preemptive support for liquidity or capital injections when a financial company suffers a temporary cash crunch due to an economic crisis.
He further emphasized, "We will refine the differential insurance premium system to better encourage financial companies to pursue sound management on their own, and we will do our best to ensure that the recovery and resolution planning (RRP) regime is operated substantively as an effective tool for preventing distress and responding in a timely manner."