On the 9th, at the 47th-floor conference room of the Busan International Finance Center (BIFC), a Memorandum of Understanding to enhance cooperation in managing non-performing assets and sharing information was signed between KAMCO and the Bank of Mongolia. Kwon Nam-ju, President of KAMCO (center front row), Lkhagvasuren Byadran, Governor of the Bank of Mongolia (fourth from the right in the front row), Enkhtur Minjuur, President of the Mongolian Asset Management Corporation (third from the right in the front row), and other officials from both countries posed for a commemorative photo.
[Asia Economy Yeongnam Reporting Headquarters Reporter Kim Yong-woo] The Korea Asset Management Corporation (KAMCO)'s expertise in managing non-performing loans (NPLs) is being "exported" to Mongolia.
On the 9th, KAMCO President Kwon Nam-joo signed a Memorandum of Understanding (MOU) to enhance cooperation, including sharing experience and information on distressed asset management, with Lkhagvasuren Byadran, Governor of the Bank of Mongolia (BOM), at the Busan International Finance Center (BIFC) headquarters.
Key officials also attended the event, including Amar Lkhagvasuren, Secretary General of the Mongolian Bankers Association, and Enkhtur Minjuur, Head of the Bankruptcy Trustee Office at Savings Bank.
This MOU was signed at the request of the Bank of Mongolia amid the global increase in non-performing loans due to the prolonged COVID-19 pandemic.
Through the MOU, both countries plan to share knowledge on NPL resolution, discover cooperative projects, and explore ways to strengthen the Bank of Mongolia Asset Management Corporation (MAMCO)'s capabilities in managing non-performing loans.
The two institutions will promote personnel exchanges to share knowledge and experience in NPL resolution through this agreement. They also agreed to cooperate in developing and implementing joint marketing strategies to establish and expand the NPL market.
They plan to actively collaborate to efficiently resolve Mongolian NPLs by providing economic and legal information related to NPL resolution and consulting services.
KAMCO supported the International Public Asset Management Forum (IPAF), an international cooperative body for joint response to the Asian economic crisis held in Mongolia in 2015, and in 2017 conducted consulting for the recovery of Mongolia's banking industry and strengthening financial stability, organized by the Asian Development Bank (ADB).
Through these efforts, KAMCO significantly contributed to laying the foundation for efficient NPL resolution in Mongolia by proposing the establishment of a local AMC and supporting the submission of related legislation.
Kwon Nam-joo, President of KAMCO, said, "By transferring KAMCO's successful cases of NPL resolution, we expect exchanges and cooperation between the two countries to become more active to improve the asset soundness of the Mongolian banking sector after COVID-19." He added, "We will continue to utilize KAMCO's core competencies, such as NPL resolution and state-owned asset management know-how, to spread positive influence throughout the Asian economic community."
Since 2001, KAMCO has shared its experience in NPL resolution and state-owned asset management development 48 times with 41 institutions in 16 countries, including Thailand and China, and has successfully led eight Knowledge Sharing Program (KSP) projects targeting countries such as Kazakhstan.
Additionally, after conducting consulting under the ADB, in August 2020, KAMCO signed a consulting contract with the Inter-American Development Bank (IDB) to foster public asset management capabilities in Latin America, transferring successful cases to the governments of Peru and Ecuador, among other advisory projects supporting the development of emerging countries.
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