Korean Deposit Insurance System has operated for nearly 2 decades.The system is provided with relatively reasonable structure，in terms of legal mechanism，organizational framework and funding system.It has played a positive role at many aspects，such as promoting interest rate liberalization，preventing bank run，protecting depositors，saving the market exit cost of bankrupt institutions and improving the environment of enterprise financing.Overall，the Korean Deposit Insurance System has made an important contribution to financial stability of Korea.But at the same time，it also raised some questions.This paper summarized the positive and negative effects of Korean Deposit Insurance System，and puted forward some beneficial suggestions for Chinese related system.