KAMCO Selects Asset Management Company for Non-Performing Loan Fund to Enhance Soundness of Regional Banks

Korea Asset Management Corporation (KAMCO) announced on the 19th that it has selected K-Clavis Asset Management as the entrusted operator for the 'Non-performing Loan Fund' established to enhance the asset soundness of regional banks.

KAMCO established this non-performing loan fund to proactively respond to the increase in non-performing loans at regional banks and support smooth acquisition and resolution, thereby preventing the spread of insolvency, as the fixed non-performing loan ratio of regional banks reached 0.65% as of the end of June, indicating a decline in soundness.

KAMCO publicly recruited entrusted operators from October 28 to November 6 and comprehensively evaluated asset management companies based on their operational capabilities and the appropriateness of their investment management plans, ultimately selecting K-Clavis Asset Management.

KAMCO plans to invest approximately 50 billion KRW in the fund established by K-Clavis Asset Management. K-Clavis Asset Management aims to raise an additional 50 billion KRW or more from private investors, including at least one of the five major regional banks, to establish a fund exceeding 100 billion KRW by the first half of next year, which will be invested in acquiring non-performing loans from regional banks.

Min Eun-mi, General Director of Household Support Division at KAMCO, stated, "Through the successful operation of this non-performing loan fund, we will help alleviate the financial risks of regional banks," adding, "We will continue to respond swiftly to rapidly changing economic conditions and prepare appropriate countermeasures to contribute to the stabilization of the national economy."