Seoul: South Korea's financial regulator urged financial institutions Monday to play a greater role in inducing a virtuous economic cycle by funneling money into innovative and promising sectors.

According to Yonhap News Agency, Kwon Dae-young, vice chairman of the Financial Services Commission (FSC), announced that the country's financial sector will further stabilize as the maximum amount of bank deposits protected by the state is doubled to 100 million won (US$72,000) starting this week. This increase in the deposit protection ceiling, the first since 2001, is aimed at better reflecting the growth of the country's economy and providing enhanced protection for customers.

Kwon explained that the ceiling hike is expected to induce more deposits at financial institutions, contributing to increased financial stability. He emphasized that financial institutions must play a more critical and urgent role in reorganizing the economy and nurturing future growth sectors. Kwon noted that these institutions will "further gain trust from customers" due to the increase in the amount of protected deposits.