Kamco Launches 'Package-Type Rehabilitation Enterprise Financial Support'... 45 Billion Won Support This Year

[Asia Economy Reporter Kwon Haeyoung] Korea Asset Management Corporation (KAMCO) announced on the 21st that it will officially launch the 'Package-type Financial Support for Restructuring Companies' program, starting with a total support of 2.3 billion KRW to four restructuring small and medium-sized enterprises (SMEs).

The package-type financial support for restructuring companies is a program jointly provided by KAMCO, the Small and Medium Business Corporation (SBC), and Seoul Guarantee Insurance (SGI Seoul Guarantee), combining new fund loans and preferential guarantees to restructuring SMEs with technological capabilities and growth potential. The program was launched last month.

On the same day, KAMCO held a commemorative meeting for the package-type financial support for restructuring companies with the attendance of representatives from SBC, SGI Seoul Guarantee, IBK Industrial Bank of Korea, and related corporate officials. The four supported companies attending the event were the first cases discovered through recommendations from IBK. KAMCO and SBC will provide a total of 2.3 billion KRW in DIP financing (a system that supports new funds for restructuring companies where the existing management has been legally appointed as a manager) for up to five years, and SGI Seoul Guarantee will provide performance guarantees up to 500 million KRW per company.

The companies receiving this package-type financial support expect rapid business normalization through ▲ increased sales by stabilizing raw material supply ▲ improved operating cash flow due to reduced product costs and improved profitability ▲ support for client sales channels (issuance of SGI Seoul Guarantee performance guarantees).

KAMCO, SBC, and SGI Seoul Guarantee have agreed to establish the package-type financial support program early based on ▲ listening to support companies' requests and providing prompt feedback ▲ improving the system through close cooperation among institutions ▲ mutual cooperation among stakeholders such as creditor banks and restructuring courts. In particular, KAMCO plans to select the second round of support target companies among about 150 restructuring companies currently undergoing funding consultations within this month and to hold the Corporate Restructuring Support Committee at least once a month to accelerate support for business normalization of restructuring companies.

Chun Kyungmi, Head of Corporate Support at KAMCO, said, "We are honored to support restructuring companies struggling with funding through the package-type financial support in collaboration with related institutions," adding, "KAMCO plans to expand the scale to about 60 companies and up to 45 billion KRW this year, focusing its capabilities on supporting restructuring companies affected by COVID-19."

Meanwhile, KAMCO operates 27 Corporate Structural Innovation Support Centers nationwide and an online information platform called 'On-Gieop' to support private investment attraction and business normalization programs for restructuring and small and medium-sized enterprises.

This content was produced with the assistance of AI translation services.