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Public funds
operations as of June 2006
News Source : Ministry of
Finance & Economy
Seoul, Jul 27 2006 (Korea Newswire)--
The government recouped 79.6 trillion won of 168.3 trillion
won in public funds which were offered for restructuring in
the financial sector from November 1997 to April this year.
As of the end of June, the collection rate rose 0.4
percentage point to 47.3 percent from 46.9 percent in the
previous month. It stood at 42.6 percent in 2004 and 45.3
percent in 2005.
In June, the government injected 4.5 billion won in public
funds including 0.4 billion won for indemnification for
lawsuits related to Korea Investment & Securities and 4.1
billion won to make up for net asset shortage resulting from
acquisition of insolvent financial institutions by 6 savings
banks.
The injection of public funds is limited to cases in which
certain financial institutions were designated as insolvent
for the reasons uncovered before the end of 2002.
In terms of collection, a total of 713.4 billion won was
recovered. Korea Deposit Insurance Corporation (KDIC)
received 31.2 billion won of the bankruptcy estate dividends
from some bankrupt foundations of which 10 billion won from
cash management accounts, 14.3 billion from treasury
accounts and 6.9 billion won from credit union accounts as
dividends. KDIC recouped 172.5 billion won from selling its
assets of Korea Investment and Securities and Korea First
Bank (the predecessor of Standard Chartered First Bank
Korea) that it had purchased due to their underwriter's
refusal to accept. The Korea Asset Management Corporation (KAMCO)
received 507.2 billion won from the sale of non-performing
loans mainly from Daewoo Group affiliates. Early repayment
was completed on Daewoo Engineering &Construction's NPLs
worth 417.3 billion won, which was scheduled to be repaid
from 2006 to 2010 according to an installment schedule.
Daewoo Heavy Industries & Machinery's NPLs of 50.5 billion
was also recovered in line with a debt repayment plan. KAMCO
issued ABS worth 25.6 billion won.
Government-guaranteed deposit insurance fund bonds of 14.6
trillion won (principal basis) with maturity from January to
June 2006 were recovered of which 7.5 trillion won from the
government contribution, 2.9 trillion from refinancing and
others from redemption fund.
