427 Billion KRW of Public Funds Recovered in 1Q This Year... Recovery Rate at 69.5%

KR&C Holdings' 40 Billion Won in Bankrupt Bonds and More

[Asia Economy Reporter Kwangho Lee] Public funds recovered in the first quarter of this year (January to March) amounted to 42.7 billion KRW. The recovery rate of public funds from November 1997 to March this year stands at 69.5%.

The Financial Services Commission announced this on the 28th through the "Status of Public Fund Management as of the First Quarter of 2021."

The 42.7 billion KRW of public funds recovered in the first quarter includes 40 billion KRW from the recovery of loan claims to KR&C (a subsidiary of the Korea Deposit Insurance Corporation) and 2.6 billion KRW in dividends received from Hanwha Life Insurance (formerly Daehan Life Insurance).

Public funds were established using government-guaranteed bonds and other resources to resolve financial institution insolvencies following the International Monetary Fund (IMF) foreign exchange crisis in 1997.

Later, in 2008, the fund was established under the name of the Restructuring Fund to alleviate financial market instability caused by the global financial crisis.

Up to the first quarter of this year, a total of 168.7 trillion KRW in public funds has been provided. The amount recovered so far is 117.3 trillion KRW.

By institution, the Korea Deposit Insurance Corporation has injected 110.9 trillion KRW, and the Korea Asset Management Corporation 38.5 trillion KRW. The government and the Bank of Korea have also provided 18.4 trillion KRW and 0.9 trillion KRW, respectively.

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