Forecast: 1.4 Trillion KRW Recovered Last Year from Savings Bank Crisis Funds... 9.8 Trillion KRW Still Remaining

27.2 Trillion Invested, 13.6 Trillion Recovered

[Asia Economy Reporter Minwoo Lee] The Korea Deposit Insurance Corporation (KDIC) recovered approximately 1.4 trillion KRW last year from the funds injected during the savings bank insolvency crisis. However, nearly 10 trillion KRW remains unrecovered.

KDIC announced this on the 31st with the publication of the "2021 Mutual Savings Bank Restructuring Special Account Management White Paper," which details the recovery process of the 27.2 trillion KRW invested in the savings bank restructuring process.

The white paper includes the progress of the special account established within the Deposit Insurance Fund in 2011 to resolve insolvent savings banks, the current status of savings bank restructuring, details of fund mobilization and support, the fund recovery process, and investigations into responsibility for insolvency.

According to the white paper, KDIC has recovered about 13.6 trillion KRW out of the 27.2 trillion KRW supported through the special account for restructuring 31 insolvent savings banks since 2011. Approximately 1.4 trillion KRW was secured last year alone. However, about 9.8 trillion KRW remains unrecovered.

Last year, efforts were made to improve sales efficiency by enhancing the asset sale standards of bankruptcy estates considering changes in the sales environment, analyzing the causes of unsold long-term unrecovered assets, and exploring new sales methods.

The white paper is available for download on the KDIC website. A KDIC official stated, "During the prolonged COVID-19 situation last year, debt adjustments were carried out focusing on low-income and vulnerable groups who faced increased repayment burdens, enabling efficient recovery of long-term delinquent claims that were difficult to collect while providing debtors with opportunities for economic self-sufficiency. We will continue to make every effort to manage risks proactively to prevent additional insolvencies in savings banks and others."

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