Saemaeul Geumgo-Yuamco PF Normalization Fund, First Success in Revitalizing Distressed Projects

"122.1 Billion KRW Investment for Restructuring"

The fund established by Saemaeul Geumgo Central Association and Union Asset Management Company (UAMCO) has made its first investment in a distressed real estate project financing (PF) site.

The "UAMCO-MG PF Normalization Fund," worth 500 billion KRW and established last September, announced on the 30th that it will invest 122.1 billion KRW, including new funds and bond acquisition amounts, in office facilities within the Seongsu IT Industry Development Promotion District in Seoul. The consortium led by Saemaeul Geumgo halted the ongoing public auction of the site and, in collaboration with UAMCO, began normalizing the distressed PF site through bond restructuring.

Last September, Im Jin-woo, CEO of Credit Guarantee at Saemaeul Geumgo Central Association (right in the photo), and Lee Sang-don, CEO of Yeonhap Asset Management, took a commemorative photo after signing an agreement to establish a fund for normalizing real estate PF. Provided by Saemaeul Geumgo Central Association.

Saemaeul Geumgo has traditionally managed distressed PF site bonds by selling most of the distressed bonds to entities such as MCI Daebu or KAMCO. This investment is the first case aimed at normalizing PF sites in accordance with the "Guidelines for Restructuring-Based Distressed Bond Management" newly established by Saemaeul Geumgo Central Association in September this year.

A representative from Saemaeul Geumgo Central Association expressed expectations that "various efforts by the Ministry of the Interior and Safety and Saemaeul Geumgo Central Association to enhance asset soundness will soon bear fruit," and added, "Going forward, under the guidance and cooperation of the Ministry of the Interior and Safety, we will actively utilize restructuring-based investments to normalize distressed PF sites and improve soundness."

A UAMCO representative stated, "As this is the first case of normalizing Saemaeul Geumgo’s distressed PF sites through the UAMCO-MG PF Normalization Fund, it will be a meaningful investment."

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