Kamco Establishes 300 Billion KRW Fund to Support Automotive and Shipbuilding Parts Industries

Overview of the Operation Structure of Loan-type Corporate Support Fund (PDF). Photo by Korea Asset Management Corporation

[Asia Economy Reporter Song Seung-seop] Korea Asset Management Corporation (KAMCO) announced on the 30th that it has established the second Industrial Loan-type Corporate Support Fund (PDF) worth 300 billion KRW to support the automobile and shipbuilding parts industries.

PDF is a loan-type private equity fund that invests investor capital in the form of loans. It is part of the "Focused Support Measures for Vulnerable Companies in the Auto Parts Industry" announced by the 7th Emergency Economic Central Countermeasures Headquarters chaired by the Deputy Prime Minister for Economy.

This second PDF was prepared to respond to uncertainties caused by the prolonged COVID-19 pandemic. In addition to the automobile parts industry, the scope has been expanded to include the shipbuilding parts industry, which requires financial support, to provide liquidity.

To this end, KAMCO selected Woori Global Asset Management as the fund manager in May and invested about 100 billion KRW as a subordinated investor.

The target beneficiaries of PDF 2 are small and medium-sized and mid-sized parts manufacturers that have signed product supply contracts with domestic finished car manufacturers or shipbuilding prime contractors. They can receive loan support secured by accounts receivable and other collateral.

Moon Sung-yoo, President of KAMCO, emphasized, "With the acceleration of paradigm shifts within the industry, the need for corporate business restructuring and the demand for funds to support this are also increasing. To revitalize the economy, we will expand the scale of corporate support funds and actively fulfill the role of anchor investors (LPs) for companies undergoing structural improvements."

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