South Korea's banking sector is rolling out livelihood-only accounts designed to protect minimum living funds from seizure, moving to strengthen the financial safety net.

The financial industry introduced related products in tandem after the protected limit was raised to 2.5 million won from 1.85 million won a month under a revision to the enforcement decree of the Civil Execution Act, the sector said on Feb. 2.

The accounts are run on a one-person, one-account basis across all financial institutions. They share a common feature of protecting funds up to a set amount from seizure and provisional seizure. They are seen as an institutional measure to guarantee minimum living costs for financially vulnerable people undergoing debt adjustment or facing a temporary economic crisis.

KB Kookmin Bank launched the KB livelihood account dedicated to seizure prevention and protects monthly deposits and balances up to 2.5 million won. Unlike existing seizure-prevention passbooks that allowed only certain benefit payments, it is designed to allow deposits without restrictions on the type of funds. It also fully waives electronic transfer fees and ATM withdrawal fees to reduce the burden on users.

Shinhan Bank also rolled out the Shinhan livelihood account in line with the higher protection limit. Under the one-person, one-account principle across all financial institutions, it manages balances and monthly deposits within 2.5 million won each. Customers can sign up at branches and on the Shinhan SOL Bank app.

Hana Bank, through the Hana livelihood account, allowed non-face-to-face sign-ups in advance within the financial industry. Customers can sign up easily through the Hana OneQ app, with a monthly cumulative deposit limit of 2.5 million won. Interest earned is excluded from the limit calculation, raising the practical effect of fund protection.

Woori Bank also introduced the Woori livelihood account, limiting seizures up to 2.5 million won a month. Customers can sign up at branches and on the Woori WON Banking app. It waives ATM withdrawal fees and fees for electronic transfers to other banks without limits on the number of transactions.

NH Nonghyup Bank launched the NH livelihood account, protecting up to 2.5 million won and waiving electronic transfer and ATM withdrawal fees. It also offers free withdrawals at other banks' ATMs up to 3 times a month, strengthening practical convenience for everyday finance.

In the savings bank sector, Daol Savings Bank moved first. Daol Savings Bank launched a demand deposit account called the "Fi (Pie) Living Relief Account" that provides seizure-prevention features and an interest-rate benefit of up to 3.0 percent a year before tax. OK Savings Bank and Welcome Savings Bank are also preparing related products.

Banking officials see the livelihood accounts as serving as a safety net that protects minimum living standards for financially vulnerable people, beyond being a simple deposit product. They say an institutional foundation has been established in earnest to prevent disruptions in living funds due to seizures and to help people return to normal financial transactions.

In this regard, Young Lee (이영), team leader for retail deposit products at Woori Bank's personal product marketing department, said it was a practical financial safety net designed to protect customers' valuable living expenses in difficult economic conditions. "We will continue to expand various financial services that help customers get back on their feet economically and practice inclusive finance," Lee said.