KDIC conducts knowledge-sharing program

By Kang Seung-woo

The Korea Deposit Insurance Corp.’s (KDIC) efforts to share its knowledge and expertise on the operation of a deposit insurance system (DIS) with other entities around the world have unfolded, as it held the Global-KDIC Knowledge Sharing Program (KSP) from Tuesday to Thursday at its headquarters in Seoul.

About 30 officials from four countries ― Bhutan, Mongolia, Nepal and Tanzania ― participated in the three-day workshop and they shared the KDIC’s knowledge and expertise on seven sectors including management of deposit insurance funds, risk management and resolution of insolvent financial institutions.

At the workshop, proposed by Tanzania seeking to set up an independent deposit insurer, were discussed ways for the KDIC to further support and improve mutual cooperation.

This is the second workshop the KDIC has hosted this year following one in April that included the United States, Malaysia and Indonesia.

The state-run deposit insurer, headed by President Lee Seung-woo, expects the workshop to boost the KDIC’s profile as an advanced deposit insurer and help to continue exchange projects such as the establishment of a deposit insurance entity with emerging countries.

The Korean government launched the KSP in 2004 to help emerging nations to develop their economic potential using Korea’s experience of rapid economic growth over the past five decades.

Through the capacity building program, Korea offers research findings, recommendations and training activities on specific issues relevant to their interests in other countries.

In line with the government’s policy, the KDIC has been active in providing the nation’s expertise and experience in the sector to many developing economies as a way to return favors the KDIC has received from the international community.

Under the program, the KDIC will help partner countries adopt a deposit insurance scheme or establish a deposit insurer, improve institutional capabilities and enhance their knowledge of DIS.

The KDIC has signed a memorandum of understanding (MOU) with nine foreign deposit insurers from the United States, Japan, Russia, Great Britain, Turkey, Indonesia, Vietnam, Taiwan and Mongolia on information and personnel exchanges to cope with crises and it dispatched staff to counterparts from Turkey, Japan and the United States.

In addition, the KDIC is scheduled to agree to an MOU with the Tanzanian finance ministry and the central bank in January next year along with policy consultation that includes research, policy practitioners’ workshops, senior-level policy dialogues and dissemination seminars.