KDIC to Use AI to Investigate Overseas Hidden Assets and Digital Assets

2026 Work Plan
Collaboration with US Legal Platform and Asset Investigation Firm
Cost Reduction and Faster Litigation through Litigation Finance

The Korea Deposit Insurance Corporation (KDIC) is set to utilize artificial intelligence (AI) to track down hidden assets of executives and employees (those responsible for insolvency) who are liable for financial institution failures. The plan aims to secure digital assets and overseas properties that have been difficult to trace so far, using a multi-faceted approach. Additionally, the KDIC has introduced litigation finance to enhance the efficiency of asset recovery.

According to the financial sector on January 23, the KDIC announced these measures as part of its 2026 work plan. The KDIC is responsible for investigating and recovering the assets of those accountable for the insolvency of financial institutions that received public funds, as well as debtors who have not repaid their debts. Typically, the targets include those responsible for the 1997 foreign exchange crisis and the 2011 savings bank crisis.

First, the KDIC will strengthen its capabilities to locate overseas hidden assets by leveraging AI. The KDIC plans to use 'LexisNexis,' the largest legal information platform in the United States, for local asset searches. This platform utilizes AI to analyze public data, identify individuals using multiple aliases, and track assets within the United States. Based on this, the KDIC plans to pursue asset collection from debtors or initiate lawsuits if immediate repayment is not made.

The KDIC also plans to use AI for tracking digital assets. Following the revision of the Depositor Protection Act in 2024, which granted the KDIC authority to investigate digital assets, the corporation has formed a new partnership with Guidepost, one of the world’s top 100 asset investigation and tracing firms, to uncover and recover digital assets hidden in the United States by those responsible for insolvency. To this end, the KDIC is working in cooperation with Guidepost’s dedicated digital asset team, led by a former FBI executive.

Going forward, the KDIC plans to secure digital asset transaction records and conduct asset investigations through AI-based on-chain activity monitoring. For example, by reviewing transactions recorded on blockchain networks (reading and verifying records in the database), the KDIC will identify the transaction history of wallet holders. On-chain refers to recording all transaction details directly on the blockchain. As of last year, the KDIC had discovered approximately 3.3 billion won in hidden digital assets and is taking measures to preserve these claims.

The KDIC is also ramping up the use of litigation finance to facilitate the recovery of overseas hidden assets. According to data from Assemblyman Huh Young of the Democratic Party of Korea, of the $44,147,000 in overseas hidden assets discovered by the KDIC from 2015 to last year, only 45% ($19,893,000) was successfully recovered. Amid ongoing criticism over the low recovery rate, the KDIC announced it would actively deploy the litigation finance it has been preparing to improve recovery rates.

Litigation finance is a type of legal-tech in which a third party, such as an investment company, covers litigation costs and shares a portion of the judgment proceeds if the case is won. After establishing the legal basis as the first public institution to introduce litigation finance, the KDIC began actively applying it to asset recovery lawsuits in the United States last year. Previously, the KDIC attempted to engage local law firms on a success-fee basis, but faced difficulties as these firms demanded billable hours due to the complexity of the cases. However, with litigation finance, investment firms cover law firm costs, allowing the KDIC to pursue aggressive litigation without budgetary constraints. A KDIC official stated, "Since last year, we have filed numerous recovery lawsuits in the United States using litigation finance, and this has been incorporated into our current work plan to generate tangible results. We expect to see substantial recovery outcomes become visible this year."