Public fund operations as of April 2006

Seoul--(뉴스와이어)--The government recouped 78.6 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 April, the collection rate rose 0.9 percentage point to 46.7 percent from 45.8 percent in the previous month. It stood at 42.6 percent in 2004 and 45.3 percent in 2005.

In April, the government injected 4 billion won in public funds, including 100 million won for indemnification for lawsuits related to Korea Investment & Securities, 4.2 billion won to make up for net asset shortage resulting from acquisition of insolvent financial institutions by 6 savings banks, and 300 million won of refund out of deposit insurance for the National Credit Union Federation of Korea.

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, the Korea Deposit Insurance Corporation (KDIC) received 1,038.9 billion won of the proceeds from sale of some Shinhan Financial Group shares obtained in return for the sale of Cho Hung Bank. KDIC also received 251.4 billion won from Woori Financial Group and 60.1 billion from Shinhan Financial Group as dividends. KDIC recouped 40.3 billion won from selling its holding 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 16.5 billion won from the sale of non-performing loans and collection pursuant to a repayment schedule. The government recouped 86.6 billion won of dividend from Industrial Bank of Korea.

Government-guaranteed deposit insurance fund bonds of 13.0 trillion won (principal basis) with maturity from January to April 2006 were recovered, of which 5.9 trillion won derived from the government contribution, 2.9 trillion from refinancing and others from redemption fund.

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