"House Poor Recovery Support"... Kamco Signs Business Agreement with SBI Savings Bank

Providing Debt Adjustment and Tenant Residency Program After Housing Sale

[Asia Economy Reporter Minwoo Lee] Korea Asset Management Corporation (KAMCO) has partnered with SBI Savings Bank to support the recovery of vulnerable and delinquent borrowers, including the 'house poor' who own homes but suffer financial hardship due to excessive principal and interest repayments on loans.

On the 7th, KAMCO announced that it signed a "business agreement to support the successful recovery of house poor and other vulnerable and delinquent borrowers" with SBI Savings Bank at the KAMCO Yangjae Tower in Gangnam-gu, Seoul.

Accordingly, when a delinquency occurs on SBI Savings Bank’s mortgage loans, KAMCO will take over the relevant claims and provide delinquent borrowers with debt adjustment and a 'post-sale leaseback program.' This includes offering low-interest debt adjustment with long-term installment repayment support for up to 33 years (including a 5-year grace period), or allowing mortgage debtors to sell their homes to KAMCO, settle their debts with the sale proceeds, lease the home for an initial 5 years (up to 11 years), and receive a right to repurchase the home.

Additionally, both institutions will explore cooperation projects utilizing their infrastructures and share information to improve support systems for delinquent debtors.

Kim Gwisoo, Head of Household Support Division at KAMCO, stated, "We expect this collaboration to further strengthen KAMCO’s support system for housing-vulnerable groups," adding, "We will continue to contribute to housing stability and household debt stabilization for ordinary citizens through cooperation with various financial sectors."

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