Korea Deposit Insurance Corp. (KDIC) paid 504 million won to compensate an informer to locate hidden assets of a savings bank, which is the largest ever amount paid by the company since its establishment some 20 years ago.
The KDIC has been looking for the hidden assets of a man named Chang, the majority owner of a savings bank that went bankrupt eight years ago. An individual informed the company that the man had stowed away his assets in Cambodia. The company found that Chang hid some 9.2 billion won of his assets in various forms of real estate in the Southeast Asian country.
He was a majority owner of Uttum Savnings Bank that went belly-up in August 2009 and the KDIC had been after his assets for the past eight years.
The informer turned over a copy of sales agreements for real estate owned by Chang and the receipts he signed for the sales of the real estate to the KDIC Hidden Asset Center. The KDIC immediately took action to go after the assets, but Chang had sold the assets after lying that the real estate was no longer under legal action by the KDIC.
The KDIC took ads out in local papers to seek the identity of the buyer of the real estate from Chang. They finally found him and won a court ruling to recover the real estate. The KDIC plans to reimburse the depositors of more than 50 million won with the savings bank. The KDIC officials said they will don’t stop until the recover all of the hidden assets savings bank.
A poster of KDIC looking for hidden assets of those responsible for defaults of their companies.(Photos: KDIC)
KDIC Opens Branch in Phnom Penh
The Korea Deposit Insurance Corp.(KDIC) opened a branch office in Phnom Penh, Cambodia, to help recover local property assets once owned by bankrupt Korean savings banks.
Cambodia has 78.5 percent of the overseas assets currently managed by the Korea Deposit Insurance Corp. (KDIC), which has taken over defunct savings banks. Most of the assets are bad debt. Several South Korean savings banks made investments in project financing in the Cambodian real estate market between 2006 and 2010.
The new office is tasked with supporting efforts to retrieve those assets in cooperation with local authorities. The process of asset recovery is expected to pick up pace with the establishment of the office in the Cambodian capital, he added. The KDIC reduced its debt by 3.8 trillion won in 2016, helped by the sale of its 29.7 percent stakes in Woori Bank for 2.4 trillion won last year.
The KDIC has not been hard at work to export its management know-how overseas. The company conducted a training class for the officers of staff of Thailand’s Deposit Protection Agency on March 29-30 in Bangkok. DPA has around 60 officers and staff and has been taking charge of the financial institutions in default to clean up their debts, among others, since its set up in 2008.
The training program took place under the MOU signed between KDIC and DPA in April, 2016, so that DPA would be able to introduce the advanced management system for deposit insurance, and benchmark the operation’s experience. DPA requested the KDIC to hold a training program in Bangkok.
The KDIC offers advanced expertise in deposit insurance, including funds management and risk surveillance. The KDIC implemented a risk–based premium system in 2014 and introduced a target fund system.
The KDIC also offers expertise in failed bank resolutions dating back to the financial crisis of the late 1990s, specializing in approaches such as open bank assistance, bridge banks, and purchase and assumption agreements, among other techniques.
The KDIC contributes speakers and presentations for training events sponsored by others. The KDIC also provides expert consultation such as advising, critiquing and meetings on site.