1st Quarter Public Funds Recovered 239.3 Billion Won... Recovery Rate 70.4%

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[Asia Economy Reporter Song Hwajeong] The government recovered 239.3 billion KRW of public funds in the first quarter of this year.

According to the '2022 First Quarter Public Fund Operation Status' announced by the Financial Services Commission on the 26th, 239.3 billion KRW was recovered in the first quarter of this year. This amount was recovered by selling a 2.2% stake in Woori Financial Group through a block deal in February.

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, 118.8 trillion KRW had been recovered by the end of March, resulting in a recovery rate of 70.4%. The recovery rate rose to the 70% range at the end of last year and maintained the 70% range in the first quarter of this year as well.

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, in response to the global financial crisis in 2008 and to stabilize the financial market, the government established the Restructuring Fund (Public Fund II) to acquire non-performing loans of financial companies and assets of restructuring firms. The operation of the Restructuring Fund ended at the end of 2014.

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