Those who have defined contribution retirement pension plans and individual retirement pension plans can now benefit from the amendment. (image: Kobizmedia/Korea Bizwire)
SEOUL, Oct. 3 (Korea Bizwire) — The Financial Services Commission gave an advance legislation notice of an amendment to the Depositor Protection Act. The amendment stated that it would offer protection worth up to 50 million won per person to retirement pensions separately from regular financial products starting at the end of this year.
Until now, the Korea Deposit Insurance Corporation has guaranteed to secure the same amount of deposits regardless of type of financial services. Those who have defined contribution retirement pension plans and individual retirement pension plans can now benefit from the amendment.
Depending on financial service, therefore, up to 100-million-won savings are planned to be secured. For example, a person who has 40 million won in a regular financial product and 20 million won in a retirement pension fund is now under the law of depositor protection. His principals worth 10 million won were not compensated before the amendment when financial institutions go bankrupt. But principals invested in funds or stocks are not subject to the protection.
By Veronica Huh (veronicah@koreabizwire.com)
