Support for Industries Including Auto Parts Companies... KAMCO Establishes 300 Billion KRW Scale Fund

Focused Support for 1st and 2nd Tier Automotive Parts Manufacturers

[Asia Economy Reporter Minwoo Lee] To support key industries such as automobile parts companies, Korea Asset Management Corporation (KAMCO) is establishing a fund worth approximately 300 billion KRW.

On the 14th, KAMCO announced the creation of the third loan-type corporate support fund, 'KAMCO PDF No. 3.' This private equity fund invests investors' capital in the form of loans and was established to provide liquidity for facility investment and operating funds to help automobile parts manufacturing companies respond to the industrial transition to eco-friendly vehicles.

The investment targets of KAMCO PDF No. 3 are primary and secondary automobile parts manufacturing companies. Hana Alternative Investment Asset Management is in charge of fund management. To attract private investment for the establishment of PDF No. 3, KAMCO committed an investment of 100 billion KRW. Additionally, to ensure the efficient operation of PDF No. 3, KAMCO signed a 'Business Agreement to Support the Automobile Parts Industry' with Hyundai Mobis and Hyundai Commercial in July.

Previously, through PDF No. 1 and No. 2, KAMCO supported about 35 companies with approximately 560 billion KRW. KAMCO President Namjoo Kwon stated, "In a situation where the internal and external business environment is deteriorating, the role of corporate support funds that can timely supply liquidity is very important," adding, "Going forward, KAMCO will strengthen its role as an anchor investor (LP) to support the business normalization of companies proactively improving their structure in a rapidly changing environment."

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