Kamco-Busan City-BMK Financial, Business Agreement to Revitalize the Busan Area

Annual Investment Up to 60 Billion KRW and Employment Support Through Specialized Corporate Support in Busan Region

KAMCO (Korea Asset Management Corporation) announced on the 11th that it signed a "Public-Private-Public Collaboration Agreement to Support Sustainable Growth and Employment Activation of Busan Regional Companies" with Busan Metropolitan City and BNK Financial Group at Busan City Hall.

This agreement was established to revitalize the local economy by helping companies facing difficulties due to regional economic downturns through the joint efforts of the public, private, and public sectors to normalize management and expand employment.

According to the agreement, starting next year, KAMCO will collaborate with BNK Financial Group to promote a Busan region-specialized corporate support and employment activation project worth up to approximately 60 billion KRW annually.

Specifically, up to five companies undergoing structural improvement centered in the Busan area will be selected annually, and KAMCO’s corporate support programs such as △ acquisition of corporate asset securitization △ support for business restructuring companies △ asset purchase followed by leasing will be jointly implemented with BNK Financial Group.

BNK Financial Group, through its affiliates including Busan Bank, Gyeongnam Bank, and BNK Investment & Securities, will perform △ recommending companies for support △ joint investment △ secured loans using movable property △ guarantee loans for rehabilitation companies △ asset securitization underwriting △ providing low-interest loans to companies graduating from the program. Since 2022, Busan City has expanded the target of its ‘Regional Company Rent Support Project’ from companies using KAMCO’s ‘Asset Purchase Followed by Leasing Program’ to those using the ‘Business Restructuring Support Program’.

Additionally, KAMCO will support rent reductions of up to 40 million KRW annually for supported companies participating in Busan Metropolitan City’s employment policy projects (such as excellent employment companies, youth excellent employment companies, Busan 50+ internship, family-friendly companies), and BNK Financial Group will provide up to 20 million KRW annually in funding for Busan City’s employment policy projects.

Through this agreement, it is expected that the public-private-public collaboration will support the management normalization of crisis companies located in Busan while contributing to the revitalization of the Busan regional economy by creating quality jobs and improving employment culture.

Kwon Nam-joo, President of KAMCO, said, “I hope this agreement will lead to the expansion of youth and senior employment and an increase in family-friendly companies in Busan, contributing to the revitalization of the Busan regional economy,” adding, “KAMCO will continue to strengthen public-private-public collaboration and make every effort to create stable jobs and support the management normalization of companies in the Busan region.”

Meanwhile, in August, KAMCO and BNK Busan Bank jointly supported liquidity of approximately 19 billion KRW by ‘trust and acquisition’ of the Busan factory of company H, a business restructuring company, as a pilot project.