KAMCO Launches Movable Property Collateral Recovery Support Organization 'KAMCO Dongsan Financial Support'

Easing Financial Companies' Loan Receivables Recovery Burden → Expectation to Revitalize SME Financing with Movable Property Collateral
Commercial Banks to Pilot Acquisition of Movable Property Collateral Claims (Approx. 5 Billion KRW) and Expand in the First Half of the Year

[Asia Economy Reporter Kwon Haeyoung] Korea Asset Management Corporation (KAMCO) has launched 'KAMCO Movable Asset Finance Support,' a movable asset collateral recovery support organization, to alleviate the burden of recovering loan claims held by financial companies.

On the 26th, KAMCO held a plaque unveiling ceremony for the movable asset collateral recovery support organization 'KAMCO Movable Asset Finance Support' at the KAMCO Yangjae Tower, attended by President Moon Seong-yu and executives from the Corporate Support Headquarters, and announced the commencement of a pilot project.

The newly established KAMCO Movable Asset Finance Support is a special purpose corporation wholly funded with 40 billion KRW by KAMCO to support the recovery of movable asset collateral loan claims held by financial companies and to revitalize funding for small and medium-sized enterprises (SMEs), in accordance with the government's '2020 Economic Policy Direction' announced in December last year, which includes the key task of 'strengthening the role of innovative finance.'

KAMCO Movable Asset Finance Support will enter into purchase agreements with financial companies for movable asset collateral loan claims and, in case of defaults, will be responsible for managing and disposing of movable collateral. This will alleviate the burden on financial companies in recovering non-performing loans and managing collateral, thereby serving as a catalyst for revitalizing SME funding through movable asset collateral. A pilot project to acquire approximately 5 billion KRW worth of non-performing movable asset collateral loans held by commercial banks will be conducted, and the project will be expanded through agreements with financial companies during the first half of the year.

President Moon stated, “We hope that the establishment of KAMCO Movable Asset Finance Support will contribute to the activation of the movable asset finance market by building infrastructure for movable asset loan management and recovery and enhancing the stability of movable asset collateral.” He added, “We will continue to discover various support systems to facilitate smooth funding for promising growth SMEs and will spare no effort to support the government's innovative finance policy enhancement.”

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