Forecast "Suhyup to Receive 750 Billion Won in Government Bonds as Public Funds"

Revision of Agreement with Suhyup Central Association
Repayment Schedule Moved Up by One Year... Both KODIT and Suhyup Achieve a 'Win-Win'

[Asia Economy Reporter Minwoo Lee] The Korea Deposit Insurance Corporation (KDIC) has agreed to receive approximately 750 billion KRW of public funds to be repaid by the National Federation of Fisheries Cooperatives (Suhyup) in the form of government bonds. This is expected to enable the recovery of funds one year earlier than originally planned.

On the afternoon of the 8th, KDIC and Suhyup announced at the Korea Press Center in Jung-gu, Seoul, that they had revised the "Agreement for the Repayment of Public Funds" to reflect this arrangement. The revision was signed by KDIC President Kim Taehyun and Suhyup Chairman Lim Juntak, in the presence of Kim Soyoung, Vice Chairman of the Financial Services Commission, and Lee Inmoo, a civilian member of the Public Fund Management Committee.

According to the original agreement, Suhyup planned to repay the public funds by 2028 using dividends from Suhyup Bank as the source. However, under the revised agreement, out of the total public funds injected amounting to 1.1581 trillion KRW, the remaining 757.4 billion KRW will be repaid in a lump sum this year by purchasing government bonds of an equivalent amount.

Accordingly, KDIC plans to recover the public funds by receiving cash annually as the government bonds paid by Suhyup mature through 2027. The maturity schedule of the government bonds by year is 80 billion KRW annually from 2023 to 2026, and 437.4 billion KRW in 2027.

A KDIC official explained, "We will be able to recover the public funds stably one year earlier than originally planned," adding, "Suhyup will also be able to enhance management autonomy and utilize Suhyup Bank's dividends to support fishermen and develop the fisheries industry."

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