KAMCO Transfers Know-How in Non-Performing Asset Management to Developing Countries

Kwon Nam-joo, president of KAMCO, delivers a speech at the 63rd anniversary of KAMCO at the KAMCO Maru of the Busan International Financial Center (BIFC). (Photos: KAMCO)

KAMCO pledges to do its best to support economic entities struggling with the ongoing economic downturn during its 63rd anniversary at the BIFC on April 2. President Kwon Nam-Ju poses for a photo with employees.

Korea Asset Management Corporation (KAMCO) is collaborating with various international organizations based on its know-how in non-performing assets. Based on this, it aims to build a global financial safety net.

KAMCO announced on March 31 that it signed a memorandum of understanding (MOU) with the National Bank of Cambodia (NBC) on March 4.

According to the announcement, KAMCO will share its experience in and knowledge of non-performing loan resolution with Cambodia.

The two organizations will work together with the World Bank to promote the stability of the financial markets in both countries.

KAMCO is actively working to build a global financial safety net through cooperation with countries around the world.

At the G20 Financial Summit held in London in 2009, KAMCO’s dealing with an economic crisis with a non-performing loan settlement fund was introduced as a best practice.

Since then, governments and bad debt resolution organizations of other countries have requested KAMCO to transfer its know-how to them.

KAMCO conducted its first training program in 2001 for China’s Huayun Asset Management Corporation.

Since then, it has conducted a total of 54 training programs with 42 organizations in 16 countries, including Vietnam and Kazakhstan on topics such as non-performing loan resolution techniques.

In 2013, it provided policy advice to the Vietnam’s DATC, an organization under the Vietnamese government, using the Korean government’s Economic Development Experience Sharing Project.

KAMCO also successfully wrapped up eight rounds of policy advisory consulting for four countries, including Kazakhstan, Colombia and Myanmar.

It is also actively involved in collaborative projects with international organizations.

A case in point is a consulting project for the Mongolian government on the recovery of the Mongolian banking industry and boosting financial stability in Mongolia.

Development of State-Owned Properties

According to KAMCO on March 1, a number of public offices and youth startup complexes will be established in public buildings such as Yeongdeungpo Tax Office in Seoul, Suwon Tax Office in Gyeonggi-do, Cheonan Customs Office in Chungcheongnam-do and Suseong Tax Office in Daegu City between 2029 and 2030.

These facilities are part of KAMCO’s public development of state-owned properties to respond to growing demand for public purposes.

The project is based on the Narakium Yeoksam Youth Entrepreneurship Hub, which was built in 2019.

The building was built after demolishing the Korea Television (KTV) headquarters, which was relocated to Sejong City.

It is now home to more than 40 venture startups.

KAMCO’s first state-owned property development is the Narakium Jeodong Building in Jeodong, Jung-gu of Seoul. Formerly the Namdaemun Tax Office, the building was one of the oldest buildings in Seoul as it was built in 1926.

In 2008, KAMCO transformed the building into a public office including the Namdaemun Tax Office, neighborhood residential and business facilities.

Helping Borrowers in Arrears

KAMCO announced on March 19 that it signed a business agreement with seven insurance companies to help borrowers who are in arrears on their mortgage loans at KAMCO Yangjae Tower in Seoul.

The seven insurers are DB Insurance, Samsung Life Insurance, Samsung Fire & Marine Insurance, KB Insurance, Fubon Hyundai Life Insurance, Hanwha General Insurance, Hyundai Marine & Fire Insurance.

The agreement is aimed at helping borrowers regain their housing stability and reduce their repayment burdens by allowing insurers to regularly transfer overdue mortgage debt to KAMCO, and KAMCO to provide debt restructuring programs to delinquent borrowers.

The agreement will enable transfers of receivables according to a pre-agreed schedule and size, which will reduce the volatility of receivables underwriting for KAMCO.

At the same time, it provides a stable channel for insurance companies to manage delinquent receivables, thereby enhancing financial predictability.

As a result, each institution is expected to realize more systematic risk management and streamline non-performing loans thanks to the agreement.