Kamco Listens to On-site Voices of the 100th Company Receiving 'Revival Enterprise Fund Loans'

On-site Sharing of Difficulties and Improvement Suggestions for DIP Financing Support Companies
KAMCO Asset Purchase and Lease Program, Comprehensive Support Including Chungcheongnam-do DIP Financing Interest Expense Compensation Provided

[Asia Economy Reporter Sim Nayoung] On the 27th, Kwon Nam-joo, President of KAMCO, visited Kirin Industry Co., Ltd. (located in Dangjin, Chungnam), the 100th small and medium-sized enterprise (SME) to receive 'Debtor In Possession (DIP) financing,' to listen to voices from the field. DIP financing is a program that provides working capital and other funds to rehabilitating companies with technological capabilities and business potential that have a high likelihood of normalization.

Kirin Industry is a strong small and medium-sized enterprise with over 40 years of experience and manufacturing technology in special panels and modular classrooms. The company entered rehabilitation proceedings in 2019, completed the proceedings in 2020, and turned a profit last year, significantly improving its financial structure. Nevertheless, it faced difficulties in transactions with existing financial institutions and actively sought help from KAMCO, ultimately succeeding in receiving the 100th support.

In addition to this DIP financing support, KAMCO plans to comprehensively support liquidity and continued operations by purchasing and leasing back factories owned by companies through the Sale & Lease Back program. Furthermore, Chungcheongnam-do Province will support 2% interest on part of the DIP loan amount for two years according to the agreement.

A Kirin Industry official stated, “Through KAMCO’s DIP financing support, we expect not only to secure funds for raw material purchases but also to greatly aid in winning orders for the new module business, which is the company’s future focus.” Kwon Nam-joo, President of KAMCO, said, “Currently, the management environment for SMEs is becoming increasingly difficult due to high interest rates, high exchange rates, and high inflation,” adding, “We will proactively support business normalization by providing comprehensive support programs such as working capital financing through DIP financing, management consulting, and guarantee support.”

There are also continuous excellent cases of successful business normalization based on KAMCO’s DIP financing support. Company C, a secondary battery material manufacturer that completed early repayment of support funds in May, succeeded in recovery through KAMCO’s DIP financing support in 2020. Its sales expanded from 2.4 billion KRW in 2019 to 9.4 billion KRW in 2021, and operating profit increased from -1.4 billion KRW to 1.2 billion KRW during the same period. The debt ratio also dramatically improved from 2700% to 210%, achieving business normalization through KAMCO’s support.

Meanwhile, over the past four years, KAMCO has supplied 88 billion KRW in new funds to 101 rehabilitating companies nationwide through DIP financing. Various corporate support programs by KAMCO, including DIP financing, can be found on the online comprehensive portal site OnCorp (www.oncorp.or.kr).

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