Push for Kamco Act Amendment... "Need to Redefine Kamco's Role"

Assemblyman Kim Byung-wook "Promoting Amendment of Kamco Act to Redefine and Strengthen Kamco's Role"

[Asia Economy Reporter Park Sun-mi] Amid concerns over insolvency among multiple debtors, small self-employed businesses, and marginal small and medium enterprises due to the spread of COVID-19, a bill to amend the Korea Asset Management Corporation (KAMCO) Act to redefine KAMCO's role is being promoted in the National Assembly.

On the 30th, Kim Byung-wook, a member of the Democratic Party of Korea, introduced the "Partial Amendment Act on the Establishment of Korea Asset Management Corporation, etc." to redefine KAMCO's role and organize the legal framework as the main proposer. The amendment bill was co-sponsored by lawmakers Ko Young-in, Park Hong-geun, Seo Dong-yong, Woo Won-shik, Yoo Dong-soo, Yoon Kwan-seok, Lee Hyung-seok, Choi Hye-young, Han Jun-ho, and Hong Sung-guk.

The current KAMCO Act focuses on the temporary operation of a non-performing loan resolution fund and enhancing the soundness of financial institutions during the IMF crisis, and it was judged that it does not properly reflect the tasks and functions KAMCO currently performs amid changed economic conditions.

In particular, as a result of patchwork additions to work provisions, the purpose of the law and the content of the articles do not harmonize, undermining the consistency of the legal system. Moreover, KAMCO lawmaker Kim explained that recent major roles of KAMCO, such as support for recovery of vulnerable households and marginal enterprises, and enhancement of public asset value through management and development of national and public property, have not been properly reflected.

Accordingly, the amendment bill clarifies the purpose clause of the current KAMCO Act as the resolution of non-performing assets through the establishment of KAMCO, support for normalization of individual debtors and companies, and enhancement of public asset value, and includes provisions to organize the content and system of the law centered on KAMCO's tasks and roles.

It also changes the deadline for approval of KAMCO's financial statements from within two months after the end of the fiscal year to within three months, aligning it with other public enterprises that set the deadline as March 31, and establishes a legal basis to request information on companies undergoing rehabilitation to the rehabilitation trustee for prompt support of such companies.

Lawmaker Kim said, "This amendment bill aims to clearly reflect in the law the tasks and functions KAMCO is currently performing in practice, redefine KAMCO's changed role, and strengthen that role," adding, "We hope that through KAMCO's proactive role, the vulnerable economy affected by COVID-19 and other factors can be supported swiftly."