Kamco, Fully Committed to Enhancing Economic Vitality and Value Amid Potential Non-Performing Loan Risks in the Second Half

Exterior view of the Kamco headquarters

[Asia Economy Reporter Kwangho Lee] Korea Asset Management Corporation (KAMCO) announced on the 20th the results of support provided over one and a half years since last year to proactively assist vulnerable groups affected by COVID-19 and to revive the national economy.

First, in the household sector, KAMCO alleviated the debt burden of 73,000 individuals by 95 billion KRW through debt reduction and repayment deferrals, and established a 'Personal Delinquent Debt Purchase Fund' with its own resources to purchase 67.4 billion KRW worth of delinquent debts from small business owners affected by COVID-19.

In addition to providing 172.3 billion KRW through asset purchase and lease programs, KAMCO has supplied liquidity by investing in the KAMCO Ship Fund and the loan-type Corporate Support Fund (PDF), supporting companies from small and medium-sized enterprises to large corporations facing crises to return to normal operations.

Furthermore, KAMCO reduced rents on state-owned properties and public buildings under its management, supporting 6,947 cases and providing 21.69 billion KRW to small business owners and SMEs struggling due to COVID-19.

Moreover, to assist low-income and socially vulnerable groups facing increased difficulties, KAMCO practiced social value by providing approximately 1 billion KRW worth of infectious disease prevention supplies, livelihood support, and establishing digital study rooms.

In the second half of this year, KAMCO plans to continuously support the practical recovery of debtors through the operation of the Personal Delinquent Debt Purchase Fund and maintenance of special debtor measures, and prepare for the potential large-scale occurrence of non-performing loans after the end of financial support policies.

Additionally, KAMCO aims to achieve a support target of 2 trillion KRW by the end of the year through revitalizing the corporate asset sales support program for companies in management crises, and will strengthen customized programs such as linked policy fund support, expansion of new funds for rehabilitated companies, and support for the sale of equipment held by business restructuring companies.

Moreover, KAMCO plans to ease the public burden by extending the rent reduction system for SMEs and small business owners leasing state-owned properties, and enhance smart asset management using digital technologies such as real-time safety inspections of hazardous properties with drones.

In particular, KAMCO will lead efforts to boost economic vitality by initiating 13 public development projects, including social overhead capital (SOC) such as the Asan parking tower, and completing 10 projects including the Daegu Integrated Government Building, with a total investment of 670.8 billion KRW.

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