What is the Depositor Protection System of CC?
It is the system to install and operate the depositor protection reserves in KFCC to protect customers’ savings if CC cannot pay back customers’ savings after the registration of complete dissolution.
The depositor protection
system is stipulated
in the Community Credit
Cooperatives Act
Community Credit Cooperatives has installed the depositor protection reserves in KFCC since 1983 to operate the depositor protection system for the first time in the financial sector in accordance with the Article 71 of the Community Credit Cooperatives Act. This effectively guarantees the refund of savings and installment savings for depositors with the depositor protection reserves of CC raised by the Article 72 of the same law.
Target & limit of
depositor
protection in CC
CCs nationwide, established by the 「Community Credit Cooperatives Law」, guarantee up to 50 million won with principal and fixed interest for each depositor as general financial institution from January 1, 2001 in accordance with the Article 46 of Community Credit Cooperatives Enactment.
What is the reserve fund system?
There is another safeguard within CC, known as the reserve fund system. The surplus of nationwide credit cooperatives has been transferred to KFCC as the reserve refund to secure a reserve refund of over 6.8 trillion. This allows customers to withdraw savings and installment savings anytime they want.