Financial Crisis and Deposit Insurance System Lecture in Korean

The era of long quantitative easing has ended and the era of austerity has come. As a result of a worldwide low-interest rate trend and releasing astronomical amounts of money to the market to overcome the prolonged global economic downturn and COVID-19, and recent war in Ukraine, prices in most countries in the world are rising rapidly. The U.S. consumer price index hit a 40-year high of 8.5% in March. As a result, the Fed is expected to continue to raise interest rates aggressively in the future, which has raised tensions in many other countries, including South Korea, due to rapid economic environments changes and the possibility of another financial crisis.

From the twentieth century to the present, there were several major financial crises such as the Great Depression in the 1930s and the Global financial crisis in 2008. During the Great Depression in the 1930s, many banks went bankrupt due to bank runs. As a result, FDIC, a government agency in charge of the deposit insurance system, was established in 1933 in the United States and is still playing a major role as the central axis of the U.S. financial safety net. Many countries around the world have benchmarked FDICs to introduce deposit insurance systems, and Korea Deposit Insurance Corporation is one of them.