Up to 60 Million KRW Annual Support for Busan-Based Companies... KAMCO Signs Agreement with Busan City

by Lee Minwoo

Published 12 Apr.2022 18:41(KST)

Support for Rent and Other Expenses to Companies Facing Liquidity Crisis

Kwon Nam-ju, President of Korea Asset Management Corporation (left), is taking a commemorative photo with Park Hyung-joon, Mayor of Busan, after signing the 'Small and Medium Enterprise Asset Purchase & Lease Support Business Agreement' with Busan City at Busan City Hall on the 12th. (Photo by Korea Asset Management Corporation)

[Asia Economy Reporter Minwoo Lee] Korea Asset Management Corporation (KAMCO) has partnered with Busan City to provide approximately 60 million KRW annually to companies located in Busan that receive support from KAMCO's asset purchase and leaseback program (S&LB).

On the 12th, KAMCO announced that it signed a "Small and Medium Enterprise Asset Purchase & Lease Support Business Agreement" with Busan Metropolitan City at Busan City Hall.

Accordingly, KAMCO and Busan Metropolitan City will each support 2% of the rent (up to 1.5 billion KRW in rent) for companies located in Busan receiving support from KAMCO's asset purchase and leaseback program (S&LB), providing up to 60 million KRW annually per company. The S&LB program is designed for KAMCO to temporarily purchase assets such as factories and office buildings from companies experiencing liquidity crises, then lease them back to supply liquidity and support continued operations.

Furthermore, the two organizations plan to establish a cooperative system to support small and medium enterprises, mutually complementing support programs and enhancing the policy effect of supporting business normalization through improving the financial structure of SMEs.

Kwon Nam-joo, President of KAMCO, said, "We hope this agreement will serve as a stepping stone for overcoming crises and achieving a new leap forward for small and medium enterprises located in Busan facing economic difficulties." He added, "KAMCO will continue to strengthen cooperation with local governments to support the successful recovery of companies supported by the asset purchase and leaseback program."