Business · Economy · 2 hrs ago
South Korea plans higher deposit insurance rates, drawing insurer opposition
South Korea’s Financial Services Commission plans to meet the deposit insurer and five financial industry associations on October 30.
The meeting will discuss raising deposit insurance rates for banks, investment firms, life insurers, non-life insurers and savings banks.
A study proposes raising the bank rate from 0.08% to 0.13%.
Life insurers’ rate would rise from 0.15% to 0.40%, and non-life insurers’ from 0.15% to 0.50%.
The increases are largest for insurance companies, and the insurance sector is strongly opposing the proposal.
The meeting on October 30 will be the fourth round of talks on the rate increases.
The groups are due to discuss the proposed changes next at the deposit insurer’s headquarters.
South Korea’s Financial Services Commission plans to discuss higher deposit insurance rates at a fourth meeting on the 30th.
Research results propose raising rates for banks, life insurers and non-life insurers.
The proposed increases are largest for insurers, which are strongly opposed.
The meeting is to include the Korea Deposit Insurance Corporation and five industry associations.
- Who
- The Financial Services Commission, the Korea Deposit Insurance Corporation and five industry associations.
- What
- They are due to discuss increases to deposit insurance rates.
- When
- The meeting is scheduled for the 30th.
- Where
- At the Korea Deposit Insurance Corporation’s headquarters.
- Why
- Not stated
Financial Services Commission
Insurance sector
Proposed rate changes
Financial Services Commission
Research results propose raising rates across the sectors discussed.
Insurance sector
The insurance sector strongly opposes the increases, which are largest for insurers.
This story does not have a timeline yet.
- Bank rate
- Proposed increase from 0.08% to 0.13%
- Life insurance rate
- Proposed increase from 0.15% to 0.40%
- Non-life insurance rate
- Proposed increase from 0.15% to 0.50%
- Meeting
- Fourth meeting scheduled for the 30th at the Korea Deposit Insurance Corporation’s headquarters