South Korea's Deposit Protection Limit Just Rose to 100 Million Won — But Splitting Accounts Doesn't Multiply It the Way You'd Think
Starting September 1, 2025, South Korea's deposit protection limit rose from 50 million won to 100 million won per person (principal plus interest combined). It's the first change since the limit was set in 2001 -- 24 years ago. No application is required: even deposits opened before September 1 are automatically covered up to 100 million won from that date onward. But a higher limit doesn't mean you can leave every account exactly as it is. Let's walk through which products are actually covered, and whether splitting your money across several accounts really multiplies the protection.
After 24 Years, the Deposit Protection Limit Rose From 50 Million Won to 100 Million Won
Some Financial Products Are Covered, Others Aren't
The Depositor Protection Act covers products like deposits and installment savings, where the principal is guaranteed to be repaid at maturity. By contrast, brokerage CMAs (RP-type and MMF-type), ELS (equity-linked securities), ELW, and mutual funds/beneficiary certificates are investment products whose value can fall depending on market performance, so they fall outside protection. This distinction applies the same way even to savings-bank deposits. Reading up on the difference between parking accounts and CMAs first will make it easier to tell whether a product you already hold is covered.
Multiple Accounts at the Same Bank Are Added Together
Some people split their money into several accounts at one bank thinking it raises their coverage -- that doesn't work. Protection is applied per financial institution, not per account, and deposits spread across a bank's head office and branches are all combined for the calculation. For example, if you hold three accounts at one bank with 30 million, 40 million, and 50 million won, the total is 120 million won, but only 100 million won of that is protected -- the remaining 20 million won could be lost if that bank fails. If you're also moving funds around a term deposit, it's worth checking how much interest you actually lose on early withdrawal before you decide.
Savings-Bank Affiliates Get Separate Limits If They're Separate Legal Entities
Even savings banks that share a group brand name are protected separately if each is registered with the Financial Services Commission as its own legal entity. So if you hold deposits at Savings Bank A and its affiliate Savings Bank B, and the two are separate companies, each gets its own 100-million-won limit -- 200 million won combined. The reverse is also true: if two differently named products belong to the same legal entity, they're combined into one limit. Before opening an account, check with the product brochure or customer service whether the entity is the same as one you already use.
Credit Unions and Community Credit Cooperatives Are Protected by Their Own Funds, Not the KDIC
Mutual finance institutions such as credit unions (Shinhyup), NongHyup, SuHyup, forestry cooperatives, and Community Credit Cooperatives (Saemaul Geumgo) aren't covered by the Korea Deposit Insurance Corporation (KDIC). Instead, each institution's own central federation runs its own protection fund. Alongside this limit increase, the mutual-finance sector's protection limit also rose from 50 million won to 100 million won, but the body doing the protecting is the sector's own federation -- not the government's KDIC -- which is a real difference from banks and savings banks. Some products, like a member's cooperative share capital, are excluded from protection entirely, so it's best to confirm directly with the relevant federation whether your specific product is covered.
Business Deposits Are Also Protected Up to 100 Million Won, on the Same Basis as Individuals
Deposits held by small business owners or small corporations for business use are protected on the same terms as personal deposits -- up to 100 million won per legal entity. A deposit held under the business owner's personal name and one held under the company's name belong to different deposit holders, so each gets its own separate limit. But if a company spreads its funds across several banks, the same rule applies as with individuals: all accounts at the same bank are still combined into one limit.
How to Check Right Now Whether Your Deposits Exceed the Limit
The first step is to add up your deposit and savings balances at each bank separately. If any one bank's total exceeds 100 million won, you can consider moving the excess to another institution, or diversifying into a non-deposit safe asset such as government bonds. The KDIC's website offers a deposit protection amount calculator that makes it easy to check whether your current balance at each bank falls within the limit. If you have old accounts you closed or forgot about, it's worth checking for unclaimed refunds and dormant deposits through the hidden-money lookup service at the same time. And if the basic concept of deposit protection is still unclear, this piece on the difference between deposits and installment savings is worth a read too.
Summary
① South Korea's deposit protection limit rose from 50 million won to 100 million won on September 1, 2025, applied automatically and retroactively with no application needed. ② Deposits, installment savings, and principal-guaranteed money trusts are covered, but investment products such as CMAs, ELS, and mutual funds are not. ③ Multiple accounts at the same institution -- head office or branch -- are all combined, with only 100 million won protected in total. ④ Affiliated savings banks that are separate legal entities each get their own 100-million-won limit. ⑤ Mutual finance institutions such as credit unions and Community Credit Cooperatives are protected by their own sector federation's fund, not the KDIC. ⑥ Business deposits are also protected up to 100 million won per legal entity, on the same basis as personal deposits. For the exact protection status and limit on any specific product, confirm directly with your financial institution or the KDIC.
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