South Korea approves recovery plans of Korea Deposit Insurance Corporation

The plans of 10 D-SIFIs (2023) align with international standards and recommendations from the FSB.

 South Korea’s Financial Services Commission (FSC) has given the thumbs up for the recovery plans of the Korea Deposit Insurance Corporation.

The resolution plans were prepared by D-SIFIs (2023) in accordance with the recommendations of the Financial Stability Board (FSB).

FSC has determined that the recovery and resolution plans of 10 D-SIFIs selected for 2023, including Shinhan, KB, KEB Hana, Woori, and NongHyup financial holding companies and their banks, largely align with international standards and recommendations from the FSB.

Compared to the previous year, the approved recovery and resolution plans incorporate enhanced tools and mechanisms, enabling large financial companies to proactively address risk situations. 

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These plans also facilitate swifter resolution proceedings for the authorities, thereby bolstering the overall stability of the financial system.

The recovery and resolution plans for D-SIFIs are reviewed and approved annually. Going forward, the authorities intend to assess and approve the recovery and resolution plans for the D-SIFIs selected for 2024.