KDIC moves closer to retrieve Cambodian property assets

South Korea’s state-run deposit insurer Korean Deposit Insurance Corporation (KDIC) will open a dedicated branch office in Phnom Penh next month to advance efforts to recover Cambodian property assets linked to bankrupt Korean saving banks. According to a Korean media report, Cambodia accounts for about 76% or $562mn of bad debt that KDIC took on following a wave of Korean bank insolvencies that began in 2008. Kim Doo-yoon, CEO of Tomato Specialized Bank, said the state-run body is still facing problems offloading Camko Specialized Bank, whose fortunes were mired by the collapse of its largest shareholder Busan Mutual Savings Bank. KDIC was entrusted with liquidating Busan’s share in Camko, but has struggled for nearly six years to find a buyer. While KDIC officials could not be reached yesterday, the media report said Cambodia’s construction boom and continually rising land prices were the reason for KDIC’s renewed push for asset collection. (Source: Phnom Penh Post)