Chairman Kwon Nam-ju of Korea Asset Management Corp. (KAMCO) lent an ear to voices of Ilsung Hysco, an SME candidate of the sale & lease back program, and explored ways of supporting it on Sept. 27.
KAMCO Chairman Kwon signed a sale & lease back contract through the sale & lease back program with Ilsung Hysco, located at the Onsan National Industrial Complex, Ulsan, and had a meeting of the company’s officials.
During the meeting, Chairman Kwon listened to difficulties the SME experiences and recommendations and exchanged diverse views on whether the program has blind spots and additional support is needed.
Ilsung Hysco, benefiting from the sale & lease back program, is a “small hidden champion,” established in 1984.
The company possesses core technologies in the LNG, petrochemical plant module, parts design and production sector, but the company went into a company recovery procedure in 2012 due to losses it sustained in the wake of the so-called knock-in, knock-out (KIKO) contracts of currency-liked derivatives products in the late 2000s.
Ilsung Hysco had a turning point by realizing operating profit continuously through retrenchment and reorganization after fishing the company recovery procedure, but the company asked for help from KAMCO to pay security-based borrowings due, and secure additional liquidity to boost exports.
KAMCO’s sale and lease back program has allowed Ilsung Hysco to secure liquidity and continue its business under the format of purchasing the plant, owned by the company, and leasing back it.
Ilsung Hysco has managed to repay the company recovery procedure security-based borrowings timely and carry out business activities in a stable fashion.
The company has seen its financial structure improve by having its debt ration plunging from 247 percent to 27 percent, building groundwork to maintain sustainable growth.
A Ilsung Hysco official said, “KAMCO’s S&LB support is predicted to contribute to landing eco-friendly LNG plant orders.”
Even though Ilsung Hysco experienced lots of difficulties during the company recovery procedure, he said, the company aims to be a world-class company thanks to KAMCO’s support.
KAMCO Chairman Kwon said, “Worsening economic conditions, such as high interest rate, high foreign currency exchange rate and high price have weighed down on difficulties SMEs experience.”
KAMCO will ramp up support so SMEs with greater recovery possibility can be normalized as soon as possible, reflecting field voices discussed today, he added.
Meanwhile, KAMCO has provided 908.9 billion won in financial support to 69 companies under the sales & lease back program since 2015, thus giving a hand to retaining 5,949 employees.
KAMCO Transfers National Asset Management Expertise to Jordanian DLS Officials
Korea Asset Management Corp. (KAMCO) offered an education program on state-owned asset management and disposal using the OnBid national asset management system to officials from the Department of Land & Statistics (DLS) under the umbrella of the Jordanian Finance Ministry and the European Bank for Reconstruction and Development (EBRD) at KAMCO Yangjae Center from Sept. 27 to Sept. 30.
DLS is a department under the control of the Jordanian Finance Ministry, established in 1929. It is responsible for managing and developing state-owned real estate such as state-owned land and buildings. EBRD was established in April 1991 to foster the transition toward open market-oriented economies and to promote private and entrepreneurial initiative.
The latest educational program followed an educational program officials from the Jordanian Finance Ministry who underwent in August.
The trainees shared institutional systems such as policies on state-owned assets as well as specific management and disposal methods, such as introducing of fact-finding surveys using drones and the state-owned property management system, and the structure and operation of the OnBid public bid system.
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