| gettyimagesbank |
By Lee Kyung-min
At least 360,000 people have yet to retrieve a combined 2.2 trillion won ($1.7 billion) from their accounts that remain dormant, according to the Korea Inclusive Finance Agency.
A bank account is considered dormant if there are no financial transactions for at least five years. The same is true for insurance savings accounts, if there are no financial transactions recorded for a period of three years after either the fund reaches maturity or the product subscription is canceled.
The state-run financial agency said it has spent over 384 million won over the past three years to send about 960,000 written notifications to people about the money they might not know about or left there expecting income from interest.
The number was 250,000 in 2020, followed by 350,000 last year and 360,000 this year. It costs 400 won to send one notification via postal service to account holders.
“We send the notification letters to inform people that they have money in their accounts,” the agency said.
Some might have forgotten. Others might leave it there thinking insurance savings accounts would continue to accrue high interest even after maturity, which the agency says is one of the most common misconceptions.
“Financial organizations do not pay interests on funds in dormant accounts. Anyone who leaves the money there seeking interest income should promptly visit offices of the agency or government websites to collect it,” it said.
Amounts less than 10 million won can be transferred without making in-person visits, after filing a request with state-run financial organizations or via government websites.
The agency said its promotional campaign including sending notifications has led to 58.5 billion won retrieved in the first half, up 6.3 percent from a year earlier. Of 221,973 requests completed, about 172,000 were processed online.