Kamco DongSan Financial Support Signs Bond Purchase Agreement with 10 Banks
1.1 Trillion Won + α Scale
[Asia Economy Reporter Park Sun-mi] KAMCO (Korea Asset Management Corporation) announced on the 3rd that KAMCO Movable Asset Finance Support, a movable asset collateral recovery support organization, has signed movable asset collateral debt purchase agreements with 10 banks.
The movable asset collateral debt purchase agreement program is a system in which KAMCO Movable Asset Finance Support acquires and manages the banks' non-performing loans according to the agreement when defaults such as delinquencies occur after the banks have executed movable asset collateral loans.
Banks that have signed the agreement can apply for purchase execution within six months if the movable asset collateral debt becomes non-performing. KAMCO Movable Asset Finance Support calculates the purchase price rate based on the expected recovery amount of the movable collateral and purchases the debt at an appropriate price.
As of the end of June, the outstanding balance of movable asset collateral loans (excluding intellectual property rights) in the banking sector was 1.2252 trillion KRW, increasing by about 300 billion KRW in the first half of the year following the government's policy to 'strengthen the role of innovative finance.' In particular, the loan scale of five major commercial banks increased by 72%, from 268.5 billion KRW to 461.2 billion KRW, showing a trend of expansion of movable asset collateral loans from policy banks to commercial banks due to expectations from the operation of the movable asset collateral recovery support organization.
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Moon Sung-yoo, President of KAMCO, said, “With the full-scale operation of the purchase agreement program, the risk of movable asset collateral recovery will decrease, and funding supply is expected to be further activated,” adding, “We will devise support measures so that small and medium-sized enterprises can timely procure necessary funds using movable asset collateral.”
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