- July 8, 2009
Bankruptcy Estate of H Merchant Bank Recovers the Entire Amount of Claims for Compensation for Loss and Damage against S
On 30 June 2009 after a legal battle lasting approximately 7 years from 2002 to 2008, the KDIC, as trustee of the bankruptcy estate of H merchant bank, recovered 33.6 billion won in claims for compensation for loss and damages against S, the person responsible for the insolvency. The KDIC recovered a total of 51.5 billion won (inclusive of an amount of 17.9 billion won previously recovered), which represents the total amount of the claim for compensation of losses and damages against S.
This accomplishment was made possible because the KDIC identified properties of parties implicated in insolvency and took appropriate measures by preserving the properties as early as the time when the financial institution was found to be insolvent.
Initially, the KDIC promoted the compulsory sale by auction of the real estate*, but on suggestion of S and after taking everything in consideration, it was decided to dispose of the real estate to a 3rd party as it was more beneficial to the KDIC, as well as S, in recovering the public funds injected.
* The court appraised the value of the real estate at 43.3 billion won whereas it was sold at for 50.0 billion won.
The KDIC undertakes to actively involve itself in recovering injected public funds through thorough investigation of parties liable for insolvency with the intent to recover public funds for the benefit of the public, and not the KDIC.
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