Corporate Asset Purchase Applications Accepted from the 17th

[Asia Economy Reporter Kim Hyo-jin] The Financial Services Commission announced on the 15th that it will begin accepting applications for the corporate asset purchase program, operated mainly by the Korea Asset Management Corporation (KAMCO), starting from the 17th.

The government decided at last month's Central Disaster and Safety Countermeasure Headquarters meeting to operate a 2 trillion won asset purchase program through KAMCO to support companies affected by the novel coronavirus disease (COVID-19). KAMCO completed preparations for funding by approving the issuance of KAMCO bonds up to 2 trillion won at last month's board meeting.

Companies seeking support can apply through the KAMCO OnCorp website (www.oncorp.or.kr). Eligible assets for purchase include real estate such as buildings and company offices, as well as factories, aircraft, ships, and other assets that companies intend to continue using by selling and then leasing back.

Assets that companies temporarily sell to KAMCO and may repurchase after a certain period due to business improvement, as well as equity stakes in affiliates held as assets and shares in other companies, are also included.

The financial authorities plan to operate committees composed of external experts responsible for reviewing the eligibility of supported companies and assets and determining the offered prices. These include the Screening Target Selection Committee, the Sales Support Review Committee, and subcommittees based on asset characteristics.

Price calculation standards by asset type and acquisition method will be prepared through services from external professional institutions such as accounting firms.

The financial authorities intend to select support targets comprehensively considering the impact on industry and employment, recovery period, and likelihood of recovery.

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