Financial Firms' Insolvency Cleanup 'Public Funds' Recovery Rate Exceeds 70%

Massive Recovery of Public Funds through Privatization of Woori Financial Group
Financial Services Commission Announces 'Q4 2021 Public Fund Management Status'

[Asia Economy Reporter Sim Nayoung] As the Korea Deposit Insurance Corporation privatized Woori Financial Group, the government's recovery rate of public funds exceeded 70%.

On the 27th, the Financial Services Commission announced in the '2021 4th Quarter Public Fund Operation Status' that the recovery rate of public funds injected to resolve financial company insolvencies after the 1997 foreign exchange crisis reached 70.3% by the end of last year.

Out of the 168.7 trillion KRW supported from November 1997 to last year, 118.5 trillion KRW had been recovered as of the end of December last year. The recovery rate of public funds, which had remained in the 60% range since 2011, rose to the 70% range for the first time in 10 years.

The amount of public funds recovered last year was 1.2919 trillion KRW. Most of this was from the sale proceeds of Woori Financial Group (1.0471 trillion KRW). In the second quarter of last year, 149.4 billion KRW was received, and 897.7 billion KRW in the fourth quarter. Dividends from shares in Woori Financial Group, Hanwha Life, Suhyup, Korea Money Brokerage, etc., totaled 178.6 billion KRW.

Looking at the fourth quarter of last year alone, a total of 913.3 billion KRW was recovered. From the sale of 9.33% (67,941,483 shares) of Korea Deposit Insurance Corporation's Woori Financial stock, 897.7 billion KRW was recovered. This also included 8.1 billion KRW from the post-settlement of remaining assets of the Non-Performing Loan Resolution Fund and 7.6 billion KRW in interest from KR&C loan receivables.

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