Assemblyman Min Hyung-bae: "Four Major Financial Public Corporations Have 1.29 Million Bonds with Interest Exceeding Principal"

[Asia Economy Honam Reporting Headquarters Reporter Yoon Jamin] It has been revealed that among the bonds held by the four major financial public enterprises, 1.29 million bonds have interest exceeding the principal amount.

In the past three years, 110,000 bonds with interest already exceeding the principal have been repaid. There are calls for financial public enterprises to actively clean up high-interest bonds that do not align with inclusive financial policies.

According to the "Status of Bonds with Interest Exceeding Principal" submitted on the 20th by Representative Min Hyung-bae (Democratic Party of Korea, Gwangju Gwangsan-eul) from four public enterprises under the Financial Services Commission (Korea Asset Management Corporation, Korea Housing Finance Corporation, Korea Credit Guarantee Fund, Deposit Insurance Corporation), as of the end of August, the four major public enterprises held a total of 1,290,646 bonds.

The total principal was 53.0092 trillion KRW, and the interest was 149.2551 trillion KRW, with interest amounting to 281% of the principal.

By institution, the Deposit Insurance Corporation's KR&C had a principal of 16.3832 trillion KRW and interest of 43.6835 trillion KRW, with interest at 369% of the principal; the Asset Management Corporation had a principal of 22.9246 trillion KRW and interest of 64.5520 trillion KRW, with interest at 281% of the principal; and the Deposit Insurance Corporation's bankruptcy estate bonds had a principal of 16.3832 trillion KRW and interest of 43.6835 trillion KRW, with interest at 266% of the principal.

The Korea Credit Guarantee Fund had interest at 232% of the principal, the Korea Housing Finance Corporation at 210%, and the Asset Management Corporation's National Happiness Fund bonds at 206%, respectively.

Meanwhile, from 2017 to August of this year, a total of 110,762 bonds with interest exceeding the principal were fully repaid. The principal was 882.7 billion KRW, and the interest was 2.1991 trillion KRW, with interest amounting to 249% of the principal.

By institution, in order of highest interest ratio, the Deposit Insurance Corporation's KR&C bonds had 2,064 bonds with a principal of 6.7 billion KRW and interest of 20.2 billion KRW, with interest at 301% of the principal; the Asset Management Corporation's corporate bonds had 73,732 bonds with a principal of 674.3 billion KRW and interest of 1.7819 trillion KRW, with interest at 264% of the principal; and the Asset Management Corporation's National Happiness Fund had 33,053 bonds with a principal of 199.5 billion KRW and interest of 393.5 billion KRW, with interest at 197% of the principal.

The Deposit Insurance Corporation's bankruptcy estate bonds had 1,796 bonds (interest ratio 174%), the Korea Credit Guarantee Fund had 62 bonds (147%), and the Korea Housing Finance Corporation had 55 bonds (139%), in that order.

Representative Min said, "Charging citizens with debt where interest exceeds the principal is completely inconsistent with inclusive financial policies," adding, "Although many expired and long-term delinquent bonds were cleared during the Moon Jae-in administration, it is inappropriate to continue demanding long-term repayment from citizens struggling due to COVID-19 when 1.29 million bonds still have interest exceeding the principal."

He continued, "If high-interest delinquent interest continues to be imposed on low-income citizens, interest will exceed the principal, making repayment more difficult and economic recovery remote," and stated, "Financial public enterprises should step up to lower delinquent interest rates, actively clean up long-term bonds, and at least for the portion where interest exceeds 100% of the principal, they should forgo collection."

This content was produced with the assistance of AI translation services.