• KDIC, the Cornerstone of Financial Stability, Protects Your Valuable Deposits

Home > KDIC's Major Activities > Risk Management

Risk Management

Management of MOUs

The KDIC has made strong efforts to recover public funds provided to financial institutions in assistance for financial restructuring and enhancing their corporate value. As part of such efforts, the KDIC has entered into MOUs of Business Normalization with 14 assistance recipient companies since 1999. Since April 2002, eight MOUs, including one with Jeju Bank, have been terminated when the institutions were sold or merged. As of the end of 2010, the KDIC still has MOUs in place with six financial institutions - Woori Financial Group, Woori Bank, Gwangju Bank, Kyongnam Bank, SuHyup¡¯s Credit Business and Seoul Guarantee Insurance Corporation.

The KDIC is committed to ensuring the MOUs¡¯ implementation. To this end, the KDIC is continuously monitoring the progress in achieving MOU targets by identifying problems in business management and, in case of failure to meet the targets, holding those responsible accountable for the failure.

  • What is the MOU on Business Normalization?

  • The MOU is composed of the main text, a business normalization plan and attached documents.
  • The main text contains detailed requirements such as the responsibility to implement the business normalization plan and the implementation schedule.
  • The business normalization plan includes the plan to improve the balance sheet and measures to improve other financial and non-financial indicators.
  • Attached documents are: a pledge to implement the MOU and an agreement signed by management and staff.