→The Major Functions of KDIC: better section headings
As of the end of Sep. 2010, the KDIC is composed of ten departments, five offices and one bureau. The total number of employees stands at 563. This number included general employees, and special employees such as attorneys, doctoral researchers, conservators, bankruptcy estate trustees, examiners, etc.
The KDIC implements [[deposit insurance]] policies and manages funds. The funds in the KDIC are divided into the Deposit Insurance Fund Bond Redemption Fund and the (New) Deposit Insurance Fund (DIF). The Redemption Fund was established to complete the financial restructuring and recover public funds injected during the first and second rounds of financial assistance following the [[1997 East Asian financial crisis]]. The new DIF could start with a clean state from then. The annual premium revenue of the DIF in 2009 was KRW 1.24 trillion.
The KDIC identifies troubled financial institutions through on and off-site monitoring and requests financial institutions or supervisory authorities to take appropriate actions to prevent failure.
Insolvent Financial Institutions===
The KDIC supports an insolvent financial institution in accordance with the following four principles: Least Cost Principle, Loss-Sharing Principle, Self-Help Effort Principle and Transparency/Objectivity Principle.
And the KDIC usually uses on of two methods: deposit payoff and financial assistance. Financial assistance includes loan extension and fund deposit, purchase of assets and assumption of liabilities, equity investment and contributions.
Failed Financial Institutions===
The KDIC resolves a failed financial institution in the least costly manner. Employing a variety of measures from deposit payoff, to purchase & assumption, to the establishment of a [[bridge bank]] and to an open bank assistance, the KDIC tries to make the resolution process as orderly and timely as possible.
The total number of insured institutions stood at 320, and the amount of insured deposits totaled KRW 2,037,830 billion. (Figures as of June 2009) The coverage limit is KRW 50 million, which is almost USD 45,000, including the principal and interest.
For efficient recovery of public funds injected in insolvent financial institutions, the KDIC can have its staff act as a manager or a trustee of such institutions. Also, the KDIC has the authority to file a liability suit or a damage claim on behalf of insolvent financial institutions.