Government Contributes 650 Billion KRW in Kind to KAMCO... Maintains Debt Ratio Within 200% Until 2022

Stable Implementation of COVID-19 Support Policies Including Corporate Asset Disposal Assistance Program

[Asia Economy Reporter Kwangho Lee] The government announced that at the 2nd Cabinet Meeting held on the 12th, it resolved the 'In-kind Contribution of State-owned Assets to Korea Asset Management Corporation (KAMCO) (Proposal)'.

This government contribution aims to strengthen the financial soundness of KAMCO, which is operating the 'Corporate Asset Sales Support Program' to support companies affected by the novel coronavirus disease (COVID-19), in order to effectively operate the support program.

Following the 'Corporate Asset Sales Support Measures' jointly prepared by related ministries at the 6th Emergency Economic Central Countermeasures Headquarters meeting in June last year, KAMCO is operating a corporate asset sales support program worth 2 trillion won.

Since the program's funds are mainly raised through the issuance of KAMCO bonds, KAMCO's debt ratio last year was 194%, a significant increase compared to 158% in 2019.

Through this contribution, KAMCO's debt ratio is expected to be maintained within 200% by 2022 according to the mid- to long-term financial management plan.

Meanwhile, the contributed assets (at market value) are government-owned investment securities of Korea Expressway Corporation (400 billion won) and Korea Airports Corporation (250 billion won), and the government's total contribution to KAMCO will increase from 580 billion won to 1.23 trillion won.

A government official stated, "With the capital expansion through this contribution, KAMCO has secured the capacity to more stably support various corporate asset sales demands," adding, "Based on this, we plan to actively operate the corporate asset sales support program at a scale of over 1 trillion won within this year."

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