‘Jinjja’ is Saved... Kamco ‘Gieop Kium-i’ Provides 146.6 Billion Won Liquidity Support This Year

7 Pilot Projects Last Year → Supporting a Total of 10 Companies This Year

President Kwon Nam-ju: "A Much-Needed Relief for Companies Facing Financial Difficulties"

Korea Asset Management Corporation (KAMCO, President Kwon Nam-ju) has actively launched a project to save companies that possess valuable technology but are experiencing liquidity crises.

On the 10th, KAMCO announced that it had provided liquidity support totaling 66 billion KRW to five companies seeking structural improvement through the operation of the ‘Corporate Kiwoom-i Program’.

This ‘Corporate Kiwoom-i’ project is a corporate asset securitization acquisition program in which KAMCO establishes a special purpose company (SPC) to support companies in raising funds from the capital market by placing their owned assets in trust as collateral.

Last year, KAMCO conducted a pilot project supplying liquidity worth 130 billion KRW to seven small and medium-sized enterprises (SMEs) and mid-sized companies, and based on that success, it has started full-scale operations this year.

In July, through the first phase of the ‘Corporate Kiwoom-i Program,’ KAMCO supplied liquidity worth 80.6 billion KRW to five companies, and with this second phase, it provided 66 billion KRW to another five companies, successfully completing a total funding support of 146.6 billion KRW to ten companies this year alone.

The recipients of this support are five SMEs and mid-sized companies engaged in manufacturing and processing sectors such as bio, automotive parts, and food, which are experiencing temporary liquidity difficulties.

To this end, KAMCO established an SPC, and this entity successfully issued asset-backed securities (ABS) worth 66 billion KRW, based on the companies’ collateral trust loans as underlying assets.

Structure of the 'Gieop Kiwoom-i' Program.

Specifically, among the ABS issued by the SPC, the senior ABS worth 20 billion KRW, credit-enhanced by KAMCO, was issued with the highest rating (AAA) and is expected to be acquired by institutional investors such as pension funds, while the subordinated ABS worth 46 billion KRW will be directly acquired by KAMCO.

KAMCO plans to regularly consolidate supported companies on a semi-annual basis and provide ongoing corporate support. Additionally, KAMCO will issue all ABS through the SPC as ESG bonds, actively contributing to the spread of ESG management.

Amid growing economic uncertainty and continued concentration of loans to high-quality companies, the ‘Corporate Kiwoom-i Program’ promoted by KAMCO is expected to be a timely relief for companies with high growth potential but facing difficulties in securing funds.

Kwon Nam-ju, President of KAMCO, stated, “Through the stable establishment of this program, we have reduced the burden of fundraising and can support more companies,” adding, “KAMCO will continue to successfully operate Corporate Kiwoom-i and devote efforts to help companies in difficulty return to normal.”

The ‘Corporate Kiwoom-i Program’ was recognized for its excellence as a new safety mechanism for companies and finance that can lead to financial structure improvement before post-restructuring procedures such as rehabilitation and workout, winning the grand prize at the ‘2024 Excellent Administrative and Policy Case Selection Contest’ hosted by the Korea Public Policy Evaluation Association last July.