The ceiling on bank deposits guaranteed in the event of bankruptcy will be raised to 100 million won starting Monday.

The Financial Services Commission (FSC) announced Sunday that government-backed deposit insurance coverage will increase from 50 million won to 100 million won, or approximately 74-thousand U.S. dollars, in the first adjustment since 2001.

Under the revised policy, the Korea Deposit Insurance Corporation will be able to reimburse up to 100 million won per individual per financial institution in cases of bankruptcy or business suspension.

The expanded coverage will apply across the financial sector, including banks, mutual savings banks, credit unions, and non-bank deposit institutions.

The protection limit is calculated separately for each institution. For instance, if a depositor holds 100 million won in a bank and another 100 million won in a non-bank deposit institution, both amounts will be fully insured.