SEOUL, Sept. 19 (Yonhap) -- South Korean financial regulators on Monday ramped up efforts to alleviate market concerns as deposit holders rushed to savings banks to check on their accounts and withdraw their money on fears the impact of the recent six-month suspensions will further hurt the ailing sector.

The Financial Services Commission (FSC), the country's financial watchdog, on Sunday ordered business suspensions of seven savings banks with heavy debts and inadequate capital ratios as part of its efforts to overhaul the industry struggling to cope with an overdose of sour property loans.

The move affected seven players -- Jeil Savings Bank, Jeil 2 Savings Bank, Prime Mutual Savings Bank, Daeyeong Savings Bank, Ace Mutual Savings Bank, Parangsae Savings Bank and Tomato Savings Bank

-- and more than 600,000 clients, and sparked fears of a bank run which could effectively cripple the entire industry.

In a bid to prevent such a liquidity crisis, financial regulators and officials visited savings banks across the country as part of an all-out effort to reassure investors and request that they refrain from excessive withdrawals.

FSC Chairman Kim Seok-dong visited Tomato 2 Savings Bank in central Seoul earlier in the day to deposit 20 million won

(US$17,606) in a bid to prove the affiliate of suspended Tomato Savings Bank was stable.

"Deposit holders do not need to be shaken. I also deposited my money here," Kim told around 100 customers who had anxiously come to the central Seoul branch to check the safety of their accounts.

"The suspended Tomato Savings Bank and Tomato 2 Savings Bank are separately managed. Tomato 2 was deemed as a normal and healthy savings bank according to the inspection by financial regulators,"

Kim stressed.

The heads of the Financial Supervisory Service (FSS) and the Korea Deposit Insurance Corp. also visited branches of Tomato 2 Savings Bank to deposit money and quell investor fears.

The FSC and the FSS, meanwhile, said in a briefing they have dispatched more than 100 officials to the branches of the affected savings banks to brief account holders.

Investors, however, raised doubts about the regulators'

efforts, sparking worries that the situation may get out of control.

"I withdrew part of my holdings that exceed the state-guarantee limit of 50 million won before the Sunday suspension. However, I am still worried because I saw normal savings banks collapse earlier this year," said 58-year-old Lee Kang-hyun, who owns a restaurant in eastern Seoul.

"My wife couldn't sleep all night and asked me to come here. A lot of average people are customers of savings banks. But I'm not sure if the government is doing enough," said Lee, adding he may consider retrieving money from his account.

Other customers echoed Lee's opinion, saying they don't feel completely assured by the government's measures following the suspension.

Financial regulators, however, said there were no signs yet of massive withdrawals following the Sunday suspension.

"It is true that withdrawals increased slightly. However, what is positive is that the amount is declining as time passes," said FSC Secretary General Kim Joo-hyeon.

Around 20 billion won has been retrieved from Tomato 2 Savings Banks' 1.5 trillion won deposit base as of end-June, financial regulators said, adding no massive withdrawals were seen in other normally-operating savings banks.

South Korea has suspended 16 savings banks this year, including once top player Busan Savings Bank.