Korea Asset Management Corporation (KAMCO) and Kakao Bank will implement debt adjustments for those behind their mortgage payments to improve housing stability for ordinary people and provide opportunities to make an economic comeback.
KAMCO and Kakao Bank announced on Nov. 15 that they have signed the business agreement, which is designed to help the “house poor.”
On hand at the ceremony were Chun Jung-woo, head of KAMCO's Household Support Division and Lee Hyung-joo, chief business officer (CBO) of Kakao Bank.
KAMCO plans to take over credit in the event of delinquency in Kakao Bank's mortgage loans and provide debt adjustment programs to debtors behind their payments.
This program aims to ease the mortgage burden and delay the execution of security rights to help them stabilize their housing welfare and recover.
The two organizations will also support delinquent debtors who are unable to pay back their loans due to COVID-19 by utilizing the improvement of the Sale and Leaseback (S&LB) Program run by KAMCO.
The S&LB Program supports mortgage debtors so they will sell their homes to KAMCO, clear their debts with funds from the sales, and repurchase their homes after renting them for five to 11 years.
“This agreement is the first case of KAMCO’s cooperation with financial platforms,” Chun said.
“The deal is quite meaningful in that it prepared measures to support the marginalized in terms of housing welfare in case of delinquency. We will continue to expand cooperation and innovation to help people overcome the COVID-19 crisis and inject economic vitality in the Korean economy so that KAMCO will be able to play its roles as an economic safety net.”
Meanwhile, KAMCO is acquiring bad debts in the private and public sectors through an organization dedicated to acquiring such debts.
It supports direct debt adjustment and provides the S&LB program.
KAMCO announced the results of Social Venture Hub tenant venture companies’ activities, such as new investment attraction, sales, and job creation to mark the second anniversary of Social Venture Hub, which KAMCO established in 2019.
Social Venture Hub is a support space operated with Seoul Metropolitan Government on the third and fourth floors of Nara Kiwoom Youth Startup Hub in Seoul.
It was developed by KAMCO using state-owned land. Currently, it is home to a total of 12 social venture companies, including two tech companies and four environmental tech companies.
Thanks to support from KAMCO, among others, sales of tenant companies jumped from 6.9 billion won in 2020 to 10.9 billion won in 2021, exceeding 17.8 billion won in cumulative sales. They created 218 jobs over the past two years.
In particular, Social Venture Hub helped a total of 31 companies - 5.3 billion won in investment for 14 tenant companies and 6.3 billion won in investment for 17 non-tenant companies - successfully attract investment through customized consulting between venture capital (VC) companies and accelerators.
“The rapid growth of Social Venture Hub is quite meaningful results achieved by young people at a time when an economic downturn and a slump in the job market continue these days,” said Shin Heung-shik, acting president of KAMCO.
“KAMCO will continue to work with related agencies to expand its growth base for young people’s success in the business world.”
Social Venture Hub provides free start-up space for young entrepreneurs who dream of starting businesses and help them develop business models to receive investment and finance their businesses in a one-stop system.
KAMCO is also promoting the Busan Youth Start-up Hub Creation Project, which will carry out the green remodeling of the “Old Southeast Regional Statistics Office” in Yeonje-gu, Busan to create jobs for local young people. They aim to complete it by the end of this year.
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