The Korea Deposit Insurance Corporation (KDIC) announced on the 19th that it would accelerate the recovery of public funds in preparation for the termination of the special account for savings bank restructuring.
The KDIC plans to recover public funds through the sale of collateral assets. It will first simplify the auction process by packaging and selling real estate with similar purposes and locations. Sales are underway not only for domestic collateral real estate but also for overseas real estate, and the KDIC plans to operate a dedicated task force to quickly organize remaining overseas assets.
Investigations into virtual assets for the recovery of troubled business operators' assets are also underway. The KDIC has identified the virtual assets of about 330 individuals related to the troubled businesses and is currently in the recovery process. The asset investigation will expand to various new types of assets, including security token offerings (STO).
Additionally, the KDIC is also proceeding with the closure of savings bank bankruptcy foundations that have low operational efficiency. The KDIC must conclude 30 savings bank bankruptcy foundations by the end of next year. So far, 17 foundations are undergoing the conclusion process, and the KDIC plans to newly conclude 7 additional foundations.
The reason the KDIC is accelerating asset recovery and sales is that the special account for savings banks will end by the end of next year. The special account was created in 2011 to inject public funds for the restructuring of insolvent savings banks. A total of 27.2 trillion won in public funds has been allocated to the account, and as of the end of last year, the KDIC is in a situation where it needs to recover an additional 5.7 trillion won in liabilities.