[Asia Economy Reporter Kim Hyo-jin] The Financial Services Commission announced on the 22nd that it failed to recover additional public funds in the third quarter of this year, which were injected to resolve the insolvency of financial institutions after the International Monetary Fund (IMF) economic crisis.
The cumulative recovery rate to date is 69.5%.
Most of the recovered funds usually consist of dividends from stocks held by the government or the Korea Deposit Insurance Corporation, but there were almost no dividends in the third quarter, resulting in minimal recovery of public funds.
There were also no funds secured through asset sales or the disposal of non-performing loans during the third quarter.
In the first and second quarters, public funds of 36.1 billion KRW and 411.5 billion KRW were recovered, respectively.
Public funds were raised using government-guaranteed bonds and other resources after the 1997 IMF economic crisis, and were used to invest in financial institutions, purchase assets and non-performing loans, and pay deposits on their behalf.
This was to support the resolution of financial institution insolvencies in order to enhance national credit and overcome the economic crisis.
A total of 168.7 trillion KRW was injected, of which 117.2 trillion KRW (69.5%) has been recovered so far.
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