Korea Deposit Insurance Corp. (KDIC) held a ceremony to declare responsibility management and to establish an internal controls and compliance regime at KDIC headquarters in Seoul on Nov. 28.
KDIC President Yoo Jae-hoon and executives made a written pledge and vowed responsibility management in front of KDIC staffers.
In the first half of this year, KDIC worked out a regime to build desirable internal controls through an outside consulting by an expertise institution. KDIC inaugurated the Internal Controls Office based on the regime.
President Yoo has been stepping up internal controls since he took office by legislating regulations on internal controls.
The declaration stipulates planning and implementation of internal controls procedures related to managers’ overseeing of internal controls and department chief and staffers’ responsible jobs. It is designed to effectively prevent accidents and corruption by assigning all KDIC members with responsibilities and roles corresponding to their authority.
KDIC President Yoo said, “Now that an internal controls regime has been introduced as I stressed since I took office, diverse regulations in place on their own in each function area have been integrated into a framework of internal controls to lay a foundation that can evolve into a better and smart institution.”
“If the internal controls regime can function successfully, each department which knows the best related jobs has to spearhead internal controls, and executives and staffers alike are requested to make continuous efforts so the internal controls regime can be operated in an effective way,” President Yoo said.
President Yoo Jae-hoon and Korea Deposit Insurance Corp. and Chairman Ham Joon-ho of Korea Money and Finance Association participate in the policy symposium on “Uncertainty and Deposit Insurance Future,” hosted by KDIC and KMFA on Nov. 30. (Photos: KDIC)
KDIC and KMFA Jointly Hold Policy Symposium on Uncertainty and Deposit Insurance Future
Korea Deposit Insurance Corp. and Korea Money and Finance Association (KMFA) jointly hosted the policy symposium on “Uncertainty and Deposit Insurance Future” on Nov. 30.
Chairman Baek Hae-ryung of the National Assembly National Policy Committee and Vice Chairman Kim So-young of the Financial Services Commission each delivered a commemorative speech.
In his welcoming speech, KDIC President Yoo said, “Learning from a lesson related to the Silicon Valley Bank’s collapse, we’ve devoted ourselves to introducing a financial stability account designed to cope with a liquidity crisis while building a real-time monitoring system on deposit trends so swift steps can be taken in case of financial market uncertainty symptoms.”
Prof. Lee Ki-young of Sungkyunkwan University, a first theme speaker, said the major causes of SVB’s collapse were the bank’s taking excessive risks following the easing of financial soundness guidelines and regulators’ failure to find solvency symptoms at an early stage and intervene in a timely manner.
Prof. Lee said regulators have to overhaul financial soundness regulations to prevent financial institutions’ moral laxity, minimize regulatory vacuum and expand the scope of liquidation to minimize losses of deposit insurance funds in cases of liquidation of insolvent financial institutions.
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