KDIC Accelerates Asset Recovery in Preparation for the Termination of the Special Account for Savings Bank Restructuring

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 Korea Deposit Insurance Corporation (KDIC) is speeding up the recovery of public funds in preparation for the closure of the special account for savings bank restructuring by the end of next year, the corporation announced on the 19th.

The KDIC’s plans to recover public funds focus on the sale of collateral assets. To simplify the auction process, the KDIC will package and sell real estate with similar purposes and locations. Sales are also underway not only for domestic collateral real estate but also for overseas real estate, with a dedicated task force being operated 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. This asset investigation will expand to various new types of assets, including security token offerings (STO).

Additionally, the KDIC is 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 special account for savings banks 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.