9.129 Billion KRW of Public Funds Recovered in Q2... Recovery Rate at 71%

[Asia Economy Reporter Song Hwajeong] The government recovered 912.9 billion KRW of public funds in the second quarter of this year. The recovery rate reached 71%.

According to the '2022 Second Quarter Public Fund Operation Status' announced by the Financial Services Commission on the 28th, 912.9 billion KRW was recovered in the second quarter of this year. This includes 258.9 billion KRW from the sale of Woori Financial Group shares and 654 billion KRW in dividends from 2021. In May, 2.33% of Woori Financial Group shares were sold through a block deal. Additionally, 125.1 billion KRW from Industrial Bank of Korea, 28.9 billion KRW from Export-Import Bank of Korea, and 192.4 billion KRW from Korea Development Bank, totaling 346.4 billion KRW in dividends received by government policy banks, corresponding to the public fund equity ratio, were included in the public fund recovery performance.

Out of the total 168.7 trillion KRW of public funds provided from November 1997 to March this year for the resolution of insolvent financial institutions, 119.8 trillion KRW was recovered by the end of June this year, recording a recovery rate of 71%. The recovery rate maintained the 70% range, rising to the 70% level at the end of last year.

Looking at the recovery status by institution, the Korea Deposit Insurance Corporation recovered 62.2 trillion KRW through equity recovery, dividends, and asset sales, while the Korea Asset Management Corporation recovered 46.1 trillion KRW through international bidding, asset-backed securities (ABS) issuance, and individual sales. The government recovered 11.5 trillion KRW through equity recovery, subordinated bond recovery, and recovery related to non-performing loan purchases.

Since the economic crisis in 1997, the government created public funds (Public Fund I) using government-guaranteed bonds and other resources to resolve insolvent financial institutions. Later, to alleviate financial market instability caused by the 2008 global financial crisis, the government established the Restructuring Fund (Public Fund II) to acquire non-performing loans of financial companies and assets of restructuring companies. The operation of the Restructuring Fund ended at the end of 2014.

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