With a hat tip to Sean Corrigan, via the Korea JoongAng Daily, we learn that their savings industry has been engulfed by a panic:
More than a thousand customers lined up in front of the Busan II Savings Bank located in Busan yesterday as soon as the nation’s financial regulator announced a six-month business suspension of Busan Savings Bank and its affiliate Daejeon Mutual Savings Bank.
The line formed by depositors extended about 100 meters (328 feet) from the door of Busan II Savings Bank. “You won’t be allowed to withdraw your money if you are just standing there without a queue ticket number,” a bank employee told the crowd using a microphone.
Those without a ticket then headed to the automated teller machines to withdraw their money, but the machines quickly ran out of cash.
Bank runs are only possible because banks, uniquely, operate in an environment of unconventional property rights, supported by central banks and the socialisation of risk. I explain further here: The legal nature of banking contracts.
What to do about it? Here are ten plans for reform.