The Korea Deposit Insurance Corporation (KDIC) has kicked off the process to sell its equity in SGI Seoul Guarantee. If the sale goes through, it is expected to recover around 1 trillion won in public funds.
According to the financial sector on the 24th, the Korea Deposit Insurance Corporation (KDIC) held the Public Funds Oversight Committee (Public Funds Committee) in the afternoon on 22nd and chose the "preferred negotiating bidder for the sale manager" to recover public funds from SGI Seoul Guarantee. It was said to have selected one domestic financial company and one overseas financial company as preferred negotiating bidders.
In Jul., the Deposit Insurance Corporation posted a bid notice to select a sale manager for the sale of 33.85% equity (23,635,946 shares) in SGI Seoul Guarantee. Once the sale is completed, the Deposit Insurance Corporation's equity will decrease from 83.85% to 50%.
In Mar., through SGI Seoul Guarantee's initial public offering (IPO) on the Korea Exchange, 181.5 billion won in public funds was recovered, bringing the total recovered to date to 5.1584 trillion won (50.3%). SGI Seoul Guarantee is a corporation formed in 1998 when Daehan Guarantee Insurance and Korea Guarantee Insurance merged following the foreign exchange crisis. Between 1999 and 2001, 10.25 trillion won in public funds was injected. Due to the lock-up (protected deposit) period after listing, the recovery timing is expected to be after Mar. next year.