Through March of this year, a total of 7.3 billion won was returned to the original owners through the Mistaken Remittance Return Support System.
However, the number of applications for the return of erroneous remittances has increased by 34.2 percent year-on-year.
On April 20, Korea Deposit Insurance Corporation (KDIC) released the usage status of the Mistaken Remittance Return Support System.
The data covers the period through the end of March 2023. The system was introduced in July 2021. It helps mistaken senders get their money back quickly and at a minimal cost.
Since the program’s launch, KDIC has confirmed 9,131 of the 24,444 applications received by the end of March as those eligible for the program.
As a result, 6019 people received 7.3 billion won in erroneous money transfers. It took an average of 46.7 days from the initial application to the return of the money, with an average remittance rate of 96 percent.
The remittance rate is not 100 percent because KDIC deducted the cost of recovering the money.
In addition, KDIC saw a significant uptick in the number of applications recently.
As of the first quarter of this year, it received 3,685 applications for the return of erroneous remittances, up 940 from 2,745 in the same period last year. This is an increase of 3.2 billion won in terms of the overall amount.
“This is because the upper limit for returning erroneous remittances has been expanded from 10 million won to 50 million won,” a KDIC official explained.
Since the beginning of this year, KDIC has been supporting the return of mistaken remittances of money between 50,000 won and 50 million won.
Six out of 10 mistaken senders who applied for the service wrongly sent less than one million won.
A image to publicize the Mistaken Remittance Return Support System in place at Korea Deposit Insurance Corp. (Photos: KDIC)
The cases involving remittances from 100,000 won or more to less than 500,000 won accounted for 36.7 percent and cases of mistaken big-amount transfers exceeding 10 million won only 0.5 percent.
Moreover, 65.9 percent of mistaken senders were in their 30s, 40s and 50s, followed by 17.7 percent in their 20s and younger, and 16.4 percent in their 60s and older.
KDIC is expected to change the name of the system to a simpler one when it marks the second anniversary of the program in July.
“We will strive to make the system easy to understand and familiar to the general public,” the KDIC official said. “KDIC will continue to conduct various promotional activities to publicize the system to people.”
Meanwhile, KDIC will hold a meeting with employees of financial companies to introduce the system, and will explain the backgrounds of the system and its achievements to member countries at the 56th Annual Meeting of Asian Development Bank (ADB) to be held in Songdo, Korea in May.
KDIC released a publication detailing the establishment of a special account last year, the status of savings bank restructurings, the creation and support of funds, efforts to recover funds, and investigations into who are responsible for insolvencies.
KDIC announced on April 12 that it published a white paper on the management of the 2022 Mutual Savings Bank Restructuring Special Account. The white paper can be accessed in the data center on the KDIC website.
According to the white paper, KDIC raised 27.2 trillion won in funds through the special account to support restructurings of 31 insolvent savings banks since 2011, and repaid a total of 18.7 trillion won in recovered funds and special account premiums.
As a result, the residual liabilities of the special account stood at 8.5 trillion won at the end of 2022.
Last year, KDIC actively improve the efficiency of the sale by spreading information on the sale of bankruptcy foundation assets through digital channels utilizing non-face-to-face and contactless new technologies.
At the same time, it began to make efforts to explore new ways to sell assets, including the establishment of a new pool of sale managers and the introduction of a recovery method based on agreements that those involved can understand.
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