South KoreaIs my deposit safe if I get deposit insurance?
Yes, your deposit is protected up to ₩50 million per depositor, per insured financial institution, under South Korea’s Deposit Insurance Act.
What the Law Says
South Korean law guarantees deposit protection through the Deposit Insurance Act, administered by the Korea Deposit Insurance Corporation (KODI). Coverage is automatic, mandatory, and applies to most deposit accounts held at licensed financial institutions.
The Deposit Insurance Act requires all banks, savings banks, and certain other financial institutions licensed in South Korea to participate in the deposit insurance system. This means your deposits are protected without any action required on your part.
Coverage applies to won-denominated deposits — including checking, savings, time deposits, and foreign currency deposits converted to won at the time of payout — up to a maximum of ₩50 million per depositor, per insured institution.
If an insured institution fails, KODI must pay insured deposits within one business day of the institution’s closure, as mandated by law.
Statutory TextThe Corporation shall pay the insured deposits… within one business day from the date of the closure of the insured financial institution.
— Deposit Insurance Act, s. 34 — Payment of Insured Deposits
Statutory TextThe amount of insured deposits… shall not exceed 50 million won per depositor at each insured financial institution.
— Deposit Insurance Act, s. 27 — Scope of Insured Deposits
What to Do
Confirm your bank is an insured financial institution (look for the KODI logo or check kodi.or.kr)
Ensure your total won-denominated deposits at each bank stay within ₩50 million for full coverage
Keep foreign currency deposits in mind — they’re covered only after conversion to won at the official exchange rate on payout day
No application or registration is needed — coverage is automatic if your bank is insured
Sources
Not legal advice. This article is general information based on publicly available sources, written for educational purposes. Laws change and individual situations vary. Consult a licensed attorney in your jurisdiction before acting on anything you read here. Last reviewed: 2026-06-08.