KAMCO Invests 560 Billion KRW in 7 Distressed PF Sites Through PF Fund

Customized Support for Facilities with Poor or At-Risk Conditions

KAMCO (Korea Asset Management Corporation) announced on the 11th that it provided tailored support to seven distressed or potentially distressed project sites nationwide through the 'PF Project Site Normalization Support Fund.'

The ‘KAMCO PF Fund’ is a fund established in September last year to assist in the normalization of distressed or potentially distressed PF (Project Financing) project sites. KAMCO invested 500 billion KRW of its own resources, and five entrusted management companies attracted additional private funds, creating a fund totaling 1.1 trillion KRW.

So far, a total of 2.24 trillion KRW in project costs for seven distressed or potentially distressed project sites have been targeted, with 370 billion KRW from the ‘KAMCO PF Fund’ and 560 billion KRW including private funds invested to actively promote normalization. Various types of PF project sites such as rental housing and offices were supported through △ project restructuring △ fund lending to help restart the projects. In October, approximately 70 billion KRW was invested in a local project site located in Bongmyeong-dong, Daejeon, supporting normalization of PF project sites nationwide.

So far, the government, led by the Financial Services Commission, has listened to various market opinions through regular real estate PF inspection meetings, and the Financial Supervisory Service has sought market stabilization measures by encouraging intensive project restructuring and liquidation through project feasibility evaluations.

KAMCO also aligned with government policies by investing 500 billion KRW of its own funds to play a catalytic role in establishing the KAMCO PF Fund. Additionally, it operated a ‘Normalization Support Platform’ to facilitate smooth negotiations for PF bond sales between existing creditors and entrusted management companies, actively fostering an investment environment.

Through active cooperation among KAMCO, policy authorities, management companies, and the cooperation of creditors, the ‘KAMCO PF Fund’ has been executing investments rapidly, focusing on six project sites since May this year. In particular, the ‘KAMCO PF Fund’ is expected to expand its role in the future as it immediately restarts projects that might otherwise be left idle for a long time, minimizing unnecessary economic costs and bringing immediate economic ripple effects such as housing supply and revitalization of the construction industry.

Kwon Nam-ju, President of KAMCO, stated, “The swift establishment and investment execution of the PF Project Site Normalization Support Fund has provided a positive signal for the soft landing of real estate PF.” He added, “KAMCO will continue to make efforts to expand investment targets, including additional support for local project sites, through close consultation with entrusted management companies.”