Jungjingong and KAMCO Collaborate to Expand Liquidity Support for Crisis Companies

Agreement Signed on the 26th to Promote Support for SME Structural Improvement

At the business agreement ceremony between the Small and Medium Business Corporation and KAMCO held on the morning of the 26th, Kim Hak-do, Chairman of the Small and Medium Business Corporation (right), is taking a commemorative photo.

[Asia Economy Reporter Kim Cheol-hyun] The Small and Medium Business Corporation (Chairman Kim Hak-do, hereinafter referred to as SBC) announced on the 26th that it has signed a business agreement with the Korea Asset Management Corporation (President Moon Sung-yu, hereinafter referred to as KAMCO) to revitalize the restructuring of small and medium-sized enterprises.

Through the agreement, both parties agreed to actively cooperate in supporting the normalization of management for companies showing signs of insolvency by linking SBC's policy funds with KAMCO's asset purchase and leaseback program (S&LB).

SBC will provide restructuring-specific funds on credit to companies with high growth potential among those participating in the S&LB program, recommended by KAMCO. KAMCO plans to support financial environment improvement by purchasing and re-leasing core assets after feasibility evaluation and acquisition review committee for companies recommended by SBC.

Additionally, both institutions will mutually cooperate in providing information and resources, supporting the establishment of cooperative systems, and will continue discussions to establish detailed implementation plans to support the normalization of management for companies in crisis.

SBC has been assisting the normalization of management for companies showing signs of insolvency through restructuring-specific funds, having supported 1,336 companies with 202.2 billion KRW in policy funds from 2015 until last July.

Chairman Kim Hak-do stated, "The signing of the business agreement with KAMCO is expected to help small and medium ventures experiencing temporary liquidity crises due to the prolonged COVID-19 pandemic," adding, "We will actively support the rapid normalization of management by linking policy funds with the S&LB program."

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