Bank deposit guarantee ceiling to be hiked to $72,000 in September
Officials are seen inside the Financial Services Commission building at the Government Complex Seoul, Dec. 2, 2019. Korea Times file
The ceiling on bank deposits guaranteed in case of bankruptcies will be doubled to 100 million won ($72,000) in September, the financial regulator said Tuesday.
Late last year, the National Assembly passed a revised bill calling for a hike in the ceiling to 100 million won from the current 50 million won.
Related processes have been completed for the hike, and the ceiling hike will go into effect starting September, the Financial Services Commission (FSC) said.
The increase in the ceiling of bank deposits protected by law, the first of its kind since 2001, is designed to better reflect the growth of the country's economy, as well as protect customers.
The FSC said the ceiling hike will induce more deposits at financial institutions, leading to increased financial stability.
The ceiling on guarantees for some pension products will also be raised to the level, according to the regulator.