Under Article 21.2 of the DPA, in the event of failure of a financial institution that received public funds, the KDIC conducts accountability investigations into the owner and employees of a default debtor corporation which has partly caused the failure by failing to repay the debts owed to the financial institution, as well as the former and current employees of the financial institution.

Such accountability investigations are aimed at taking civil action against those who caused loss to the financial institution or the corporation by violating the Articles of Incorporation or laws and regulations. For detailed fact finding and evidence gathering, the KDIC set up teams of investigation experts. In particular, in December 2001, the Special Investigation Mission for Default Debtor Corporation which included officials from the Prosecutors¡¯ Office, the Police, National Tax Service, Korea Customs Service, Financial Supervisory Service and the KDIC was created under the office of the Chairman. At the end of March, 2008, in an organizational reshuffle, the Special Investigation Mission was integrated with the Investigation Department, which was responsible for investigations into failed financial institutions, to become the Insolvency Investigation Division.

In the meantime, to ensure the fairness and transparency of investigation results and reviews, the KDIC has also put in place the Financial Insolvency Accountability Deliberation Committee which is mainly made up of legal and financial experts. The Committee is responsible for reviewing the charges faced by insolvency-implicated persons, the extent of their accountability and the amount of liabilities in an objective and thorough manner.

In addition, the KDIC conducts property investigations against insolvency-implicated persons to secure properties from which liabilities will be paid. Based on the investigation results, the KDIC takes necessary action including filing a damage claim suit or preserving claims through the concerned financial institution.
All these efforts are part of the KDIC¡¯s commitment to eliminating unfair business practices and recovering as much public funds as possible.