[2022 National Audit] Kwon Nam-ju, President of Korea Asset Management Corporation, Requests No Management Evaluation Disadvantage Due to New Start Fund

[Asia Economy Reporter Eunju Lee] Kwon Nam-joo, President of Korea Asset Management Corporation (KAMCO), stated that they are requesting the Ministry of Economy and Finance to ensure that KAMCO does not face disadvantages in future public institution management evaluations due to the implementation of the New Start Fund.

At the National Assembly's Political Affairs Committee audit on the 17th, Kim Han-gyu, a member of the Democratic Party of Korea, pointed out, "To promote the New Start Fund, a government national task, KAMCO decided to independently issue 14.4 trillion won in corporate bonds. Considering that KAMCO's annual corporate bond issuance volume over the past four years was 0.8 trillion won, this inevitably becomes a burden in management evaluations." He added, "Especially since the Ministry of Economy and Finance plans to place significant importance on debt ratio indicators when evaluating public enterprises in the future, KAMCO's public institution evaluation is expected to worsen, which is unreasonable." If KAMCO issues corporate bonds, the debt scale will surge, affecting public institution evaluations.

In response, President Kwon Nam-joo explained that the sharp increase in KAMCO's debt ratio is inevitable in carrying out national tasks, and they are currently in discussions with the Ministry of Economy and Finance. President Kwon said, "The Ministry of Economy and Finance is aware of this point, and since KAMCO has requested it, discussions are underway to ensure that it does not affect the management evaluation process." He added, "(The New Start Fund) is a special case for carrying out national tasks, so we are asking for this to be taken into consideration, and we expect that this aspect will be somewhat (considered and) revised."

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