Assemblyman Park Sang-hyeok Proposes 'Disclosure of List of High-Value Insolvency Related Persons'

Amendment to the Depositor Protection Act
"Expectations for Increased Recovery Rate of Overseas Hidden Assets"

On the 30th, Park Sang-hyeok, a member of the Democratic Party of Korea, announced that he has proposed the "Amendment to the Depositor Protection Act," which introduces a system for disclosing the names of high-value insolvent parties.

Currently, the Korea Deposit Insurance Corporation (KDIC) identifies the responsible parties when a financial institution becomes insolvent and, through administrative and public agencies as well as financial institutions, recovers funds by locating and seizing real estate, deposits, and savings held by those parties. While the Depositor Protection Act allows for requests for information on domestic assets, investigative authority does not apply to overseas assets, and in some countries, investigations are difficult due to inadequate disclosure systems.

Since 2019, the recovery rate of hidden overseas assets has declined, dropping to 17% in 2021, and remaining at around 20% in 2022 and last year. Although the recovery rate is not high, the cost incurred for recovery efforts since 2019 has amounted to $920,000 (approximately 1.2 billion KRW).

According to the amendment proposed by Park, the names of high-value insolvent parties recognized to hold overseas assets may be disclosed after review by the Insolvent Parties Name Disclosure Deliberation Committee.

Park stated, "Other laws such as the Framework Act on National Taxes and the National Pension Act have introduced and operate name disclosure systems to secure monetary debt fulfillment, including taxes, quasi-taxes, and civil claims." He added, "By introducing a name disclosure system for high-value insolvent parties recognized to hold overseas assets, we expect to secure the effectiveness of investigations for claims of damages and improve the recovery rate of public funds."

On the 30th, Park Sang-hyeok, a member of the Democratic Party of Korea, announced the proposal of the "Amendment to the Depositor Protection Act," which introduces a system for disclosing the names of high-value defaulters.
[Photo by Kim Hyun-min kimhyun81@]

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