[Alpha Biz=(Chicago) Reporter Paul Lee] Yoo Jae-hoon, president of the Korea Deposit Insurance Corp., said on the 14th that the government should continue to enhance its ability to respond to the crisis by improving the cleanup system in preparation for the outbreak of the financial crisis.

"Financial companies should strengthen incentive-compatible management measures to autonomously manage risks to prevent the financial crisis from occurring in advance," CEO Yoo said at a plenary meeting of the "2023 Deposit Insurance Advisory Committee" held at the Korea Deposit Insurance Corporation's headquarters in Jung-gu, Seoul.

"The deposit insurance system is becoming more prominent than ever in the face of lingering instability in the financial market due to worsening internal and external economic conditions," CEO Yoo said. "We should focus our capabilities on establishing a future-oriented deposit insurance fund system to help depositors feel safe."

The meeting discussed cases and implications of special overseas cleanups related to the U.S. Silicon Valley Bank (SVB) crisis and ways to encourage financial firms to strengthen their autonomous risk management.

 

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