Retrieval rate of bailout funds up 0.1% in Q1

The rate of bailout funds recouped from companies that borrowed from the government since the 1997 Asian financial crisis rose 0.1 percent in the first quarter to 69.3 percent, the country’s financial regulator said Monday.

As of end-March, the government had retrieved a total of 116.8 trillion won out of the 168.7 trillion won extended to companies struggled to survive in the 1997 and 2008 financial crises, according to the Financial Services Commission.

The retrieval of taxpayers’ money is normally achieved either by receiving dividend payments from companies or the liquidation of their non-performing assets, an official said. 

In the first quarter, a combined 36.1 billion won returned from a subsidiary of Korea Deposit Insurance Corporation and Hanwha Life Insurance, slightly raising the retrieval rate of late last year which stood at 69.2 percent.

The FSC expects the public funds will be completely recovered by the end of 2027. 

By Choi Jae-hee (cjh@heraldcorp.com)