Companies Seeking Business Restructuring... Kamco Supports by Acquiring Assets

[Asia Economy Reporter Song Seung-seop] Korea Asset Management Corporation (KAMCO) will conduct a pilot project to acquire assets of companies seeking to restructure their businesses to enter new industries.

According to the industry on the 1st, KAMCO is carrying out a pilot project called the 'KAMCO Business Restructuring Company Asset Sale Support.' This program is a follow-up measure to the government's 'Second Half of 2021 Economic Policy Direction.' It was promoted to conduct a preliminary review of detailed support plans and overall support procedures reflecting company requests before the full-scale implementation of the support project next year.

The target companies are those in oversupplied sectors, entering new industries, or located in industrial crisis areas under the Special Act for Vitality Enhancement (Corporate Vitality Act). Among them, companies that receive approval for their business restructuring plans from the Business Restructuring Plan Deliberation Committee can use the support system.

KAMCO assists business restructuring by purchasing assets such as facilities or real estate from eligible companies and then leasing them back. Asset purchases are made through trust methods or KAMCO's corporate support programs. In this pilot project, KAMCO will supply a total of 42 billion KRW by purchasing 40 pieces of machinery and equipment and 2 real estate properties from three companies approved for business restructuring to enter new industries.

Kim Gwi-su, Head of KAMCO's Corporate Support Division, emphasized, "The importance of proactive business restructuring and timely funding is growing in the rapidly changing industrial environment," adding, "We will strive to expand liquidity supply and provide timely support so that companies can smoothly restructure their businesses and secure competitiveness."

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