S. Korea recoups 94.5 tln won in bailout funds

SEOUL, Nov. 2 (Yonhap) -- South Korea has so far retrieved 56.1 percent of public
funds used to bail out financial companies during the 1997-98 Asian financial
crisis, the financial watchdog said Monday.
The country retrieved 94.5 trillion won (US$79.9 billion) out of a total of 168.6
trillion won in public funds as of the end of August, according to the Financial
Services Commission (FSC). The August recovery rate compared with 56 percent seen
at the end of July, it added.
The South Korean government poured massive amounts of public funds into the local
financial system to rescue it from corporate bankruptcies when the financial
crisis erupted in 1997.
Meanwhile, the FSC said the country spent 660.4 billion won by tapping a 40
trillion won fund to buy bad debts from local financial firms and purchase assets
from ailing companies.
The government purchased 462.2 billion won in bad property-linked debts from six
local banks and spent the remainder to buy 17 idle ships, it added.
South Korea plans to spend 20 trillion won from the fund this year as part of
efforts to brace for a corporate revamp drive.
sooyeon@yna.co.kr
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