Kamco Confirms 2 Trillion Won Bond Issuance... Corporate Asset Purchase Program to Launch Next Month (Comprehensive)

The bond issuance limit of Korea Asset Management Corporation (KAMCO), which will be used as funding for the corporate asset purchase program, has been set at 2 trillion won. The program, which is expected to actively commence next month, lists the Songhyeon-dong site of Korean Air and Doosan Tower as major purchase targets.

According to the financial sector on the 22nd, KAMCO held a board meeting on the same day and set the bond issuance limit at 2 trillion won. The board meeting, originally scheduled as an in-person meeting with KAMCO’s president, auditor, vice president, and multiple standing and non-standing directors, was converted to a written meeting due to the spread of COVID-19.

The full-scale operation of the asset purchase program is expected to begin in early next month. KAMCO has currently established the Corporate Asset Acquisition Support Task Force to conduct preliminary market demand surveys and review detailed programs to support corporate asset sales. Specific procedures will be prepared by the end of this month, and applications from companies will be accepted starting next month. Subsequently, bond issuance for asset purchases will commence, likely no earlier than mid-month. Bonds will be issued sequentially depending on the scale of assets to be sold by applicant companies, and external professional institutions such as accounting firms will conduct evaluations to determine the value of the assets for sale.

In the market, the Songhyeon-dong site of Korean Air, which is experiencing sales difficulties, is viewed as the most likely candidate for the 'first purchase.' Korean Air, a strong candidate for the first recipient of the Period Industry Stabilization Fund, failed to attract bidders in the preliminary bidding for the Songhyeon-dong site, which closed on the 10th. Doosan Tower, Doosan Construction’s headquarters, and Doosan Heavy Industries’ Club Mow Country Club (CC) could also be purchase targets. However, the main bidding for Club Mow CC is scheduled for the 24th. More than five parties have submitted letters of intent (LOI), so the sale is expected to proceed without KAMCO’s support.

A KAMCO official explained, "The board resolved to issue KAMCO bonds worth 2 trillion won as funding for this program to assist companies facing difficulties in raising funds to sell their assets," adding, "Because this is a matter of great interest and significance, sufficient discussion had to take place before the board meeting, which delayed the schedule compared to the original plan."

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