Due to concerns about the financial stability of Saemaeul Bank, there has been a continuous outflow of deposits and savings. In response, the government has announced plans to utilize the payment capacity of Saemaeul Bank Central Federation to guarantee the principal and interest of customers. In similar situations, the government is prepared to provide liquidity support through borrowing. Additionally, there are considerations to restore the previous tax benefits and agreed interest rates for customers who reinvest their deposits after early withdrawal from Saemaeul Bank.
During a joint briefing with the Financial Supervisory Commission and other related agencies, Han Chang-seop, Vice Minister of the Ministry of Administration and Safety, stated, "In 2011, there was a case where benefits were restored within two weeks when customers reinvested their deposits, and we are taking that into account while examining new measures."
The government had previously taken measures to restore the agreed interest rates and allow normal termination on the agreed maturity date for customers who reinvested their deposits in Saemaeul Bank 12 years ago. This was done to minimize any unintended harm resulting from misunderstandings about the deposit protection system.
Vice Minister Han added, "Through the Mutual Financial Policy Council, the Ministry of Administration and Safety is continuously discussing management and supervisory measures with financial authorities, providing support for the sound regulation of Saemaeul Bank. We hope that Saemaeul Bank members and all citizens can feel reassured."
It should be emphasized that Saemaeul Bank Central Federation has a payment capacity of 77.3 trillion won, including 48.7 trillion won in entrusted deposits, 15.2 trillion won in cash deposits, and 13.3 trillion won in repayment reserves.
In the event of a similar situation, the government plans to provide sufficient liquidity support through measures such as government borrowing, following the Contingency Plan. The Contingency Plan consists of three stages, which involve providing surplus funds from deposits in the first stage, making repayments from the repayment reserves in the second stage, and providing loans from the central federation in the third stage.
Furthermore, financial authorities are actively securing various channels to support the large-scale sale of delinquent loans from Saemaeul Bank.
It has been reported that comprehensive financial institutions related to Saemaeul Bank hold bonds amounting to 54 trillion won. In the past two days alone, estimated sales reached 1.6 trillion won, including 900 billion won worth of financial bonds.
Due to ongoing withdrawals, there is an expectation of movements to sell bonds in order to secure liquidity in advance. This trend is expected to continue temporarily.
The government plans to sell delinquent loans from Saemaeul Bank amounting to 1.2 trillion won by the end of this year. The sale will be facilitated through MCI Credit Specialized Financial Company, a subsidiary of Saemaeul Bank Central Federation, and the Korea Asset Management Corporation.
Kwon Dae-young, a standing member of the Financial Services Commission, stated, "If the Korea Asset Management Corporation purchases delinquent loans, it will reduce the delinquency rate in Saemaeul Bank's balance sheet. We may increase the support amount beyond 500 billion won if necessary."