Financial Services Minister Hakuo Yanagisawa has pledged to refuse to use public funds to pay off any holders of bogus deposit accounts at Chogin credit unions with alleged financial ties with North Korea.
"The government believes that deposit accounts without substance have no claims to credit to financial institutions," Yanagisawa told the Lower House Budget Committee on Tuesday.
The government is thus not obliged by the Deposit Insurance Law to refund such fictitious deposits at failed Chogin credit unions where such accounts were kept, he said.