Forecast, 'Kamco City' Final Victory... Relief Path Opens for Busan Savings Bank Victims

Baek Wi-sung, President of the Korea Deposit Insurance Corporation

[Asia Economy Reporter Kwon Haeyoung] The Korea Deposit Insurance Corporation (KDIC) has opened a path to recover 680 billion won in claims tied to the Cambodian 'Kamko City Project' involving Busan Savings Bank. This also signals a positive development for the relief of more than 38,000 victims of the Busan Savings Bank incident.

On the 27th, KDIC announced that it had won the final appeal in the stock return claim lawsuit related to Kamko City at the Supreme Court of Cambodia.

The Kamko City project was a real estate development planned by Mr. Lee, who borrowed 236.9 billion won from Busan Savings Bank to carry out the project in Phnom Penh, the capital of Cambodia. After Busan Savings Bank went bankrupt in March 2012, KDIC, as the bankruptcy trustee, began recovering 60% of the shares in World City held by Busan Savings Bank, intending to use the funds to compensate victims of the Busan Savings Bank incident. However, the lawsuit was prolonged after Mr. Lee filed a stock return claim in 2014 demanding the return of the 60% stake in World City. KDIC won the final verdict on this day, with the total principal and interest recovery amounting to 680 billion won.

The Supreme Court of Cambodia ruled that Mr. Lee's refusal to repay the 680 billion won loan principal and interest and his demand for the return of shares held by KDIC were unjust. It also recognized the 60% stake in the local project company held by KDIC.

A KDIC official stated, "With this victory, the long-standing legal dispute over shareholder rights in the local Kamko City project company has been resolved," adding, "KDIC plans to promptly normalize the management of the local project company and will focus its capabilities on specifically establishing and implementing measures to restore the Kamko City project to normal operation."