S. Korea recovers over 92 tln won from 1997 bailout

SEOUL, Oct. 1 (Yonhap) -- South Korea has so far collected more than half of the
public funds spent to bail out financial companies hit by the 1997 financial
meltdown, the financial watchdog said Wednesday.

As of end-August, the government has recouped 92.3 trillion won (US$77.3 billion)
in public funds, or 54.8 percent of the total 168.4 trillion won provided to
financial institutions through 1997 to August of this year, according to the
Financial Services Commission.
The recovery rate was 53.4 percent at the end of last year, it said.
In August alone, the government collected 203 billion won after the national
deposit insurance agency sold off assets of Shinhan Financial Group Co. The
government got hold of the assets in exchange for its holding in the now-defunct
Chohung Bank, which Shinhan bought up in 2003 for 3.37 trillion won.
The government injected a large sum of public funds into financial companies to
rescue them from bankruptcy following the 1997 financial turmoil.