'1 Year in Office' Mun Seong-yu, President: "KAMCO Focused on Overcoming the COVID-19 National Crisis in 2021"

1 Year Since Inauguration of President Mun Seong-yu
Kamco's Direction in 2021 is Overcoming the COVID National Crisis
"We Will Establish a Comprehensive Support System to Overcome the COVID National Crisis"
"Promise to Actively Participate in the Korean New Deal Policy"

[Asia Economy Reporter Park Sun-mi]"KAMCO will take the lead in overcoming the ongoing COVID-19 crisis based on its experience and expertise in overcoming economic crises."

Marking his first anniversary in office, KAMCO President Moon Sung-yoo stated at an online press conference on the 17th that KAMCO's business focus for 2021 is centered on overcoming the COVID-19 crisis.

President Moon said, "2021 is a time when the role of the public sector is very important for economically vulnerable groups such as households and businesses due to increased economic uncertainty and recession," adding, "In 2021, KAMCO will establish a comprehensive support system to overcome the COVID-19 national crisis and will make every effort to restore economic vitality by ▲ alleviating the burden on financially vulnerable groups ▲ supporting the normalization of vulnerable companies ▲ establishing and implementing all-round support measures to revitalize the regional economy."

Specifically, KAMCO promised to smoothly execute the purchase of delinquent debts worth 2 trillion won from individuals and small business owners and provide debt adjustment support. It also pledged to assist corporate management normalization through corporate asset sales support, S&LB (where KAMCO purchases assets and then leases them back), DIP financing (financial support while maintaining existing management), and other corporate support programs totaling 1 trillion won plus alpha (+α).

Furthermore, KAMCO plans to contribute to job creation and regional economic revitalization by expanding national and public land development projects and will extend policies to reduce rents for small business owners and SMEs. In particular, to proactively and flexibly respond to the changed economic order in the post-COVID era, KAMCO will establish response directions such as ▲ transforming into a New Normal leading organization ▲ strengthening support for livelihood stabilization ▲ restoring national economic vitality, and will newly establish a COVID-19 Crisis Overcoming Committee to enhance execution capabilities.

Regarding the Korean New Deal policy promoted by the government to overcome the COVID crisis and transform the national economic paradigm, KAMCO also expressed its intention to actively participate. President Moon said, "Based on differentiated expertise and know-how, KAMCO plans to actively support the Korean New Deal policy by discovering and implementing tasks such as supporting startups of SMEs and venture companies, expanding green building investments in national and public land development sectors, and utilizing digital transformation and new technologies through big data and mobile."

Achievements in Overcoming the Economic Crisis

What support projects did KAMCO implement in 2020 for victims and vulnerable groups during the COVID-19 crisis?

Meanwhile, President Moon also cited proactive support for victims and vulnerable groups during the COVID-19 crisis as one of KAMCO's achievements in its first year after his inauguration.

First, to support overcoming COVID-19, KAMCO provided debt reduction and repayment deferral amounting to 61.9 billion won for about 52,000 individual debtors whose income decreased, and created a 2 trillion won personal delinquent debt purchase fund with KAMCO's own resources to purchase COVID-19 affected delinquent debts.

In the corporate sector, to help normalize management for SMEs facing increasing difficulties, KAMCO expanded the S&LB program, supporting eight SMEs with high potential for management normalization with 129.5 billion won. It also established a KAMCO Ship Fund worth 376.5 billion won to timely supply liquidity to small and medium shipping companies exposed to direct and indirect COVID-19 damage.

Through the corporate asset sales support program announced at the Emergency Economic Central Disaster and Safety Countermeasures Headquarters meeting in June, KAMCO supported 160 billion won in private joint investments, approximately 326 billion won in B&H (direct purchase, holding, and resale to third parties) and S&LB, and is preparing to execute 117 billion won within the year for a loan-type fund (PDF) to support the automobile industry.

President Moon said, "In March, we invested 40 billion won to establish KAMCO Movable Asset Finance Support Co., Ltd., conducted a pilot purchase of 4.5 billion won in movable secured claims, and signed purchase agreements worth 1.3 trillion won with 10 commercial banks to support the activation of movable asset financing for SMEs." He added, "In the public sector, we are conducting 35 national and public land entrusted development projects totaling 1.2 trillion won and promoting 19 living SOC complex projects worth 402.6 billion won to invigorate the regional economy," highlighting these as achievements.

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