Only 24% of public funds retrieved as of March: MOFE report to Assembly

Out of the second round of public funds raised last year, the government will inject into ailing financial institutions 13 to 14 trillion won in the second quarter of this year and 11 to 14 trillion won in the second half. The government has so far raised a total of 134.7 trillion won in public funds as of the end of March. Of the amount, only 32.8 trillion won or 24.4 percent have so far been retrieved.

Deputy Prime Minister Jin Nyum, concurrently serving as the finance and economy minister, reported on the operation of public funds with these highlights to the National Assembly`s finance and economy committee Monday. Deputy Prime Minister Jin said that the government injected 24.1 trillion won into staggering financial institutions as of the end of March, out of a total of 50 trillion won of public funds raised additionally last year including 10 trillion won of public funds retrieved. Jin added the government plans to use all the remaining amount within this year. He also said that in an effort to maximize the withdrawal of public funds, the government will sell off non-performing bonds held by itself through various means and dispose of its stakes in financial institutions beginning the second half of next year. If circumstances allow, the stake sale could come earlier, he said.

Kwon Soon-Hwal shkwon@donga.com