KDIC to Recover Even Coins… Accelerating Public Fund Recovery

The Korea Deposit Insurance Corporation (KDIC) is accelerating the recovery of public funds injected into the resolution of past insolvent financial institutions. Virtual assets held by those related to insolvency are also included in the recovery target.

KDIC announced on the 19th that it has discovered virtual assets of over 330 individuals related to insolvency and is proceeding with the recovery process of these assets. This is a follow-up measure after the legalization of property investigation rights for virtual assets last October. A KDIC official stated, "To enhance recovery efficiency, including the liquidation of virtual assets, we are also promoting the opening of corporate real-name accounts in the name of the bankruptcy estate at exchanges and partner banks," adding, "We will expand property investigations to various new digital assets such as Security Token Offerings (STO)."

KDIC is actively pursuing the recovery of public funds as the termination dates of related funds are approaching. The 'Repayment Fund', established for the management of public funds injected during the foreign exchange crisis, will cease operations at the end of 2027. The 'Special Account', set up during the restructuring of insolvent savings banks in 2011, is set to end next year.

KDIC is also speeding up the disposal of long-term unsold properties. Last month, KDIC recovered $730,000 (approximately 1.03 billion KRW) by selling real estate assets in Kazakhstan. Of the 19 pieces of collateral art, 18 pieces (approximately 300 million KRW) were sold. KDIC stated, "We will make every effort to maximize recovery performance by focusing on the sale of held assets," and "We aim to successfully conclude the fund through the recovery of hidden assets of those related to insolvency and the closure of the bankruptcy estate."

Reporter Seo Hyung-gyo seogyo@hankyung.com