President Moon Chang-yong of Korea Asset Management Corp(KAMCO)

The Korea Asset Management Corporation (KAMCO) set up a special unit to take charge of reviewing the selection of the companies for the development of state-owned land managed by KAMCO. The special unit will also review the agreements signed for development, and those already in operation since February.

The KAMCO Public Contract Office has integrated the contract signing and review system under the scheme set up to work along with the contract review committee, and the technology advisory committee by streamlining the systems and set up new ones as part of its responsibility.

The new contract office needed to be set up with KAMCO’s projects, service and goods contracted last year, rising to 174.9 billion won in 2018 and projected to rise further to the level of 300 billion won annually in the next several years. That will require an exclusive unit to take charge of the related areas to make the contracts more transparent and boost their fairness along the way.

KAMCO wanted to introduce a KAMCO-type contract and reviewing system in a bid to expand chances for diverse new market participants, especially those socially poor so that its aim to contribute to its inclusive growth policies is realized.

KAMCO is a government-owned asset management company in South Korea. It has purchased and resolved non-performing loans (NPLs) of financial institutions, implemented the restructuring plan of corporations, assisted the financially-underprivileged to restore credit-worthiness, and managed state-owned properties and collected overdue taxes as a quasi governmental entity. KAMCO carried out its task of resolving non-performing loans efficiently and contributed to the efficient restructuring of the financial industry in Korea during the post-1997 Asian financial crisis period.

KAMCO purchased the impaired assets and settled the gains or losses with the financial institutions involved once the assets recovered their value. It acquired impaired assets at $30.9 billion - the book value of which amounted to $85.1 billion by 2002 - and recovered $33.9 billion by 2008 by reselling to private investors through various methods, including public auctions, direct sales, international tenders, securitization and debt-equity swaps.

The role of KAMCO has been five-fold: (1) the management and operation of the Non-Performing Assets Fund; (2) the acquisition and resolution of NPAs from financial institutions; (3) the implementation of work-out programs for distressed companies; (4) the management of government-owned properties and resolution of tax arrears; and (5) supporting the recovery of consumer credit.

One of the major functions of KAMCO was to acquire and dispose of NPLs from financially distressed financial institutions and companies under rehabilitation plans. KAMCO was founded in 1962 and is based in Busan, South Korea.

 As the perpetual restructuring institution, KAMCO serves the development of the nation's economy and financial institution, maximizes government revenue by effectively managing government commissioned state-owned properties and in times of crisis, KAMCO stands in the front lines to support households, corporations, financial institutions, and even the government as the nation's economic safety-net.

A view of the building in Seoul where KAMCO’s Seoul office has its offices. (Photos: KAMCO)