Seoul Guarantee Insurance share sales, dividends yield 42.7 billion won

Cumulative recovery reaches 123.4 trillion won; rate rises from 72.7% to 73.1%

The Financial Services Commission office at Government Complex Seoul in Jongno-gu, Seoul [Yonhap]
The Financial Services Commission office at Government Complex Seoul in Jongno-gu, Seoul [Yonhap]

The government recovered 69.6 billion won ($52.6 million) in public funds in the third quarter of this year. Of the 168.7 trillion won injected into financial sector restructuring since the Asian financial crisis, a cumulative total of 123.4 trillion won has been recouped, pushing the recovery rate to 73.1%.

The Financial Services Commission announced the figures Tuesday in its third-quarter 2026 public fund management report.

Seoul Guarantee Insurance accounted for the largest share of third-quarter recoveries at 42.7 billion won — 19 billion won from share sales and 23.7 billion won in dividends.

An additional 20 billion won came from government bonds held by the National Federation of Fisheries Cooperatives that matured during the quarter. Another 6.9 billion won was collected through interest income on loans previously extended to KR&C, the former Korea Resolution and Collection Corp.

As a result, cumulative recoveries from the 168.7 trillion won in public funds mobilized since November 1997 reached 123.4 trillion won through the end of September. The cumulative recovery rate rose 0.4 percentage points, from 72.7% at the end of last year to 73.1% at the end of September.

Public funds were raised through government-guaranteed bonds and other instruments after the 1997 Asian financial crisis to wind down insolvent financial institutions. The funds were channeled through the Korea Deposit Insurance Corp., the Korea Asset Management Corp. and the government into equity injections, grants, deposit payouts and asset purchases at financial firms.

The FSC said it plans to continue managing and selling financial institution stakes and other assets held by the government, the Korea Deposit Insurance Corp. and other relevant agencies to ensure the steady repayment of public funds.

Meanwhile, the FSC recently announced a proposed revision to its supervisory regulations that would cap real estate and construction loans by non-bank credit companies at 30% of their credit assets each, while setting a new combined ceiling of 50% for all real estate-related lending, including project financing. The revision would also require card companies to assess payment risk from payment gateway firms on a quarterly basis, while expanding the ceiling on rental business operations for non-bank credit companies.


rim@heraldcorp.com