KAMCO Launches 'Direct Purchase Program for Movable Collateral'... First Company Selected

Direct Purchase Structure of Collateralized Assets. Photo by Korea Asset Management Corporation

[Asia Economy Reporter Song Seung-seop] Korea Asset Management Corporation (KAMCO)'s direct purchase program for movable collateral has been officially launched.

On the 1st, KAMCO announced that the 1st Movable Asset Acquisition Deliberation Committee selected the first target company for the program.

The direct purchase program for movable collateral is a policy operated by 'KAMCO Movable Finance Support,' an organization under KAMCO, which purchases companies' machinery or equipment to provide liquidity. KAMCO then leases the purchased machinery or equipment back to the companies for continued use.

On the 27th, at the Korea Asset Management Corporation (KAMCO) Yangjae Tower in Gangnam-gu, Seoul, committee members are reviewing whether to purchase movable property collateral for the companies under review at the "1st Movable Property Acquisition Review Committee." Photo by KAMCO

The first target company is an auto parts manufacturer facing a management crisis due to a sharp decline in sales caused by COVID-19. After reviewing the appropriateness of the purchase and the validity of support, KAMCO decided to purchase 12 pieces of machinery worth 300 million KRW.

The decision was made by the Movable Asset Acquisition Deliberation Committee, which reviews whether to purchase movable collateral. To ensure fair and professional evaluation, the committee consists of five external experts in the fields of movable asset valuation, rehabilitation, and corporate evaluation.

Kim Gwi-su, Head of KAMCO's Corporate Support Division, emphasized, "Through the direct purchase of movable collateral, we will expand liquidity supply to small and medium-sized enterprises temporarily facing difficulties. We will continue to serve as a catalyst for movable finance and faithfully perform the role of preventing the occurrence of non-performing loans."

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