President Wi Sung-baek of Korea Deposit Insurance Corp.(KDIC)

The Korea Deposit Insurance Corp. (KDIC) put on auctioned 39 items including, some that were obtained during the restructuring of a number of savings banks in default under its Grand Fair, which took place for four weeks from Oct. 15. The official appraisal prices of those put on auction totaled 241.1 billion won.

Included in the items to be sold off were apartment construction sites, golf courses and other real estate pieces located around the country, which can be bought at below the market prices. KDIC decided not to refer to the official appraised values, just the market price, to decide the winning bids.

One such item is located at No. 2 Dongchun District in Incheon Metropolitan City, which is scheduled to be replaced with land to be developed in the City Development District, which could be viewed as an advantage because it may be developed for joint residences in the future.

Another item put up for bidding was the Maron New Day 18-Hole Golf Course located in Cheonan, South Chungcheong Province. The golf course is currently being used so that any successful bidder can immediately operate it.

When calculating the acceptable bidding prices, the return of the deposit money for the bidding will be considered, reflecting the market price.

Other items up for public bidding at the Grand Fair included small officetels with commercial shops and expensive villas and apartments, and houses with gardens.

There were 39 diverse items with total appraisal values of 241.1 billion won.

This time, unlike in the past, the biddings were held for each item in consideration of the special characteristics so they can be sold to appeal to the needs of each bidder in what can be termed as a “dynamic sales method.”

KDIC also had a professional appraisal institution consider the invitation rights and legal costs as part of resolving expenses when coming up with the prices to decide the right bidding prices. The company also put up for public view the information on the items on biddings including the appraisal prices for the convenience of the potential bidders.

KDIC will take action to normalize the operations of the PF business sites as early as possible to help the government led the social value of the finances. They will also try to lease those sites or use them for public purposes for the early vitalization of the local economies and create jobs.

In the meantime, Vice President Kim Jun-ki of KDIC has been elected as a director of the International Association of Deposit Insurance (IADI) at its 17th annual conference held on Oct. 18 in Bazel, Switzerland, where 83 member firms participated in the voting.

IADI was set up in May 2002, in Bazel, Switzerland, to take charged of international standards, and regulations on the deposit insurance system like similar to the roles played by the BIS and the FSB.

The regular member countries include Korea, the U.S., Japan, Britain, Canada and Russia, among the 83 member countries with 14 international financial institutions as partners including the World Bank.

IMF, and IBRD and 10 financial safety net institutions the likes of the central bank of the Philippines as junior members.