The Financial Services Commission (FSC) announced that the cabinet approved legislative revision bills and related amendments raising South Korea’s maximum deposit protection coverage to KRW100 million from KRW50 million, with the higher limit taking effect from 1 September 2025. The KRW100 million cap will apply in cases of insolvency to deposits at banks, savings banks, insurance companies and financial investment businesses covered by the Korea Deposit Insurance Corporation under the Depositor Protection Act, and to mutual finance businesses covered by their own federation funds, including credit unions and agricultural, fisheries, forestry and community credit cooperatives. Principal-protected savings and installment savings products will be covered up to KRW100 million regardless of when an account was opened, while performance-linked investment products such as funds are excluded; retirement pension plans, pension savings and accident insurance payments handled separately within the same financial company will also be subject to the increased coverage. The FSC and the Korea Deposit Insurance Corporation will oversee implementation and consumer communications, and will review deposit insurance premium rates in the second half of 2025, with updated premium rates scheduled to take effect from 2028.

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