A pan-government crisis response team has been formed amid growing concerns over the soundness of the Korea Federation of Community Credit Cooperatives(KFCC). 

The interior and safety ministry, finance ministry, the Financial Services Commission, the Financial Supervisory Service and the Bank of Korea said Thursday that the response team is closely monitoring deposit trends in KFCC branches across the nation and actively responding to risk factors. 

The latest move came after some KFCC branches that are set to be merged into other branches due to insolvency issues were overwhelmed with customers who sought to withdraw their savings. 

Vice interior and safety minister Han Chang-seob said he is aware that the latest rise in KFCC’s delinquency rates have sparked woes over the federation’s soundness. However, he stressed that such delinquency rates are at a level in which they can be fully managed and asked the public not to be concerned. 

He cited that like other financial institutions, depositors with savings in KFCC branches amounting up to 50 million won are protected under related laws. 

Han said even if some KFCC branches merge, all savings accounts of customers will be secure.