The negative net worth of Chogin Tokyo Shinyo Kumiai, a pro-Pyongyang credit union that was declared insolvent in May 1999, had quadrupled to 193 billion yen as of the end of March, administrators said Wednesday.
Public funds will ultimately be required to replenish the depleted assets, said Hideto Yoshida, senior director of the Deposit Insurance Corp.'s financial reconstruction department.
Former Director Shin Pyongjun and Deputy Director Kang Hyeimun are among the 19 senior managers who may face court proceedings for their role in Chogin Tokyo's failure. The 49-year-old credit union had 153 billion yen in deposits as of March.
The amount of liabilities in excess of assets at the credit union rose from 53.4 billion yen in 1999 -- when it first applied to the then Financial Reconstruction Commission to replenish its depleted liquidity -- after administrators set aside larger loan-loss reserves for its outstanding nonperforming loans of 228.2 billion yen for fiscal 2000.