Banks Actively Engaging in the Normalization of Small and Medium-Sized Enterprise Management

[Asia Economy Reporter Song Hwajeong] Banks are actively supporting small and medium-sized enterprises (SMEs).

On the 29th, according to the banking sector, Shinhan Bank recently signed a business agreement with Korea Asset Management Corporation (KAMCO) to discover new business models utilizing mutual expertise and to promote win-win cooperation.

Korea Asset Management Corporation is a quasi-governmental institution that handles the acquisition and resolution of non-performing loans of financial companies, corporate restructuring, support for the financially vulnerable to recover, management of national assets, and settlement of overdue taxes.

Through this business agreement, both parties agreed to actively cooperate to create synergy between public asset management and finance by ▲utilizing public auction information through real estate investment consulting and financial support for auctioned properties ▲collaborative projects for the normalization of SME management ▲various financial supports utilizing mutual functions.

In particular, Shinhan Bank plans to expand support projects that combine institutional arrangements and financial services for SMEs together with Korea Asset Management Corporation, the only public asset management specialized institution in Korea.

Earlier, Woori Bank also signed a business agreement with Korea Asset Management Corporation for the first time in the banking sector to activate the asset purchase and leaseback program. Both parties agreed to actively cooperate in promoting and financially supporting the 'asset purchase and leaseback program' aimed at improving the financial structure of companies with high potential for management normalization.

The asset purchase and leaseback program is a program in which KAMCO temporarily purchases assets of companies experiencing liquidity difficulties and leases them back to the companies. Companies can secure liquidity through the sales proceeds and quickly normalize their management.

Woori Bank plans to provide rapid financial support and management consulting to companies supported by the asset purchase and leaseback program, laying the groundwork for faster management normalization.