[2021 National Audit] "KAMCO Should Support Debtor Rehabilitation by Expanding Integrated Management of Non-Performing Loans"

Assemblyman Kim Han-jung: "Expansion of Integrated Management of Non-Performing Loans Needed to Facilitate Debt Adjustment for Multiple Debtors"

[Asia Economy Reporter Park Sun-mi] This year, the acquisition performance of non-performing loans by public institutions reached 8.267 trillion KRW by the first half, raising concerns about the urgent need to expand integrated management of non-performing loans.

On the 18th, Kim Han-jung, a member of the National Assembly's Political Affairs Committee and Special Committee on Budget and Accounts (representing Namyangju-eul, Gyeonggi), urged that the Korea Asset Management Corporation (hereinafter referred to as KAMCO) should expand its integrated management of non-performing loans held by public institutions to enable debtors to restructure their debts and recover quickly.

Rep. Kim explained, "In the case of multiple debtors, various institutions hold claims, but due to differences in each institution's management system and interests, effective debt restructuring is difficult," adding, "This causes problems where these debtors cannot recover quickly."

KAMCO acquires non-performing loans held by institutions that have joined the agreement, such as the Korea Technology Finance Corporation, Korea Credit Guarantee Fund, Korea Deposit Insurance Corporation, and Korea Housing Finance Corporation, according to the financial public institution non-performing loan management system. The total acquisition scale of non-performing loans from 2017 to the first half of this year amounts to 8.267 trillion KRW.

Rep. Kim stated, "Expanding integrated management of non-performing loans by increasing the number of public institutions joining the agreement will facilitate debt restructuring for multiple debtors, enabling them to recover quickly," and urged, "KAMCO should work with financial authorities to increase the number of public institutions joining the agreement."