Financial Firms Will Be Required To Insure Against Employee Crime

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Financial Firms Will Be Required To Insure Against Employee Crime

The Korea Deposit Insurance Corp. said Tuesday that as early as October financial firms that carry deposit insurance will also be required to buy insurance against losses from embezzlement or other wrongdoing by their employees.

"After examining every insured financial firm's condition," an official at the state-run deposit insurer said, "we will decide whether all firms will be required to take out the insurance at once or require it selectively based on management situations."

The official said the implementation of the insurance plan is scheduled for the fourth quarter, but could be delayed. "We have not decided on many details, including if we will reduce the deposit insurance rates for firms that buy the insurance against staff wrongdoing."

The move follows a March revision of the Depositor Protection Act calling for the deposit insurer to require firms to take out the extra protection. It was given two years to begin the program.



by Suh Kyoung-ho

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