KAMCO Invests 300 Billion KRW Corporate Support Fund to Aid Auto Parts Industry

First Investment of 117 Billion KRW Executed in 6 Primary Auto Manufacturers' Suppliers

[Asia Economy Reporter Park Sun-mi] KAMCO announced on the 18th that it has established a 300 billion KRW loan-type corporate support fund (PDF) for the automotive parts industry and executed an initial investment of approximately 117 billion KRW.

The loan-type corporate support fund for key industries was created following the announcement of the "Automotive Parts Industry Focused Support Measures" at the 7th Emergency Economic Central Countermeasures Headquarters meeting in June, to provide liquidity to mid-sized and small automotive parts manufacturers struggling due to COVID-19.

To establish this loan-type corporate support fund, KAMCO invested 100 billion KRW as a subordinated investment, which is one-third of the total fund size, to activate private investment in the capital market. Through the established loan-type corporate support fund, small and medium-sized automotive parts manufacturers facing difficulties in obtaining new loans from financial institutions can secure additional funds from the capital market, while investors gain enhanced investment recovery stability by using accounts receivable from finished car manufacturers as collateral.

To this end, KAMCO signed a business agreement in June with Hyundai, Kia Motors, and Hyundai Commercial to build a cooperative system for fund establishment and financial support, and on the 17th, executed investments totaling approximately 117 billion KRW, allocating between 10 billion and 30 billion KRW each to six first-tier suppliers of Hyundai and Kia Motors.

Moon Sung-yoo, President of KAMCO, stated, “We hope this loan-type corporate support fund investment will help overcome the management crisis in the automotive industry,” and added, “KAMCO plans to expand and promote loan-type corporate support fund investments to other key industries of our economy, such as shipbuilding and steel.”

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