- Advance Dividend for Uninsured Deposits to Jeonil Depositors
The KDIC plans to make advance dividend payments to depositors of Jeonil Mutual Savings Bank (“Jeonil”)
with deposits in excess of the KRW 50 million coverage limit from May 3 to July 30.
Advance dividend payments are designed to pay in advance part of the money expected to be recovered
through the resolution process to holders of deposits above the insurance limit.
As part of efforts to reduce depositors’ inconvenience from a protracted resolution process, the KDIC decided
to make advance dividend payments for the first time.
This measure is expected to improve the livelihoods of ordinary people who are the main users of savings
banks as they will be able to use the advance payment to meet immediate financial needs. They will also
receive additional funds depending on the outcome of asset sales.
Upon depositors’ requests, the KDIC will purchase savings bonds on condition of ex-post settling up and, in
exchange, make advance dividend payments.
In case the recovered amount exceeds advance dividend payments, depositors will receive the surplus.
Conversely, if the recovered amount falls below advance dividend payments, depositors will have to return the
difference to the KDIC.
The advance payment rate this time will be 25%* of savings bond value. The number of eligible depositors is
around 5,900 with the total amount reaching KRW 15.9 billion.
* If the recovery rate exceeds 25% in the bankruptcy dividend process, the surplus will be paid out at the end
of bankruptcy proceedings or before that.
To receive the advance payment, depositors have to visit one of the following eight Nonghyup branches with
his/her account book and a photo ID: Jeonju Wanju City/County branch, Taepyong-dong branch, Jeongeup
City branch, Gunsan central branch, Iksan central branch, Namwon City branch and Gimje City branch.
A proxy must have a letter of authorization, a certificate of seal impression and an ID of the represented person
to receive the payment.
For more details, please contact the KDIC Department of Savings Bank Support at 02-1588-0037.
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