[2025 Audit] KAMCO Chief: "1.8 Trillion Won in IMF-Era Non-Performing Loans to Be Restructured via New Leap Fund"

On the 23rd, at the National Assembly's Political Affairs Committee audit held at the Busan International Finance Center (BIFC) in Nam-gu, Busan, Jung Jeong-hoon, President of the Korea Asset Management Corporation, is responding to lawmakers' questions. Photo by Yonhap News

The Korea Asset Management Corporation (KAMCO) will sell non-performing loans it acquired during the 1997 foreign exchange crisis to the New Leap Fund.

On October 23, at the National Assembly's Political Affairs Committee audit held at the Busan International Finance Center (BIFC) in Nam-gu, Busan, Jung Jeong-hoon, President of KAMCO, responded to a question about whether long-term delinquent loans acquired by KAMCO during the IMF crisis could be transferred to the New Leap Fund, stating that this would be the case.

This month, the government launched the New Leap Fund, a bad bank that purchases long-term delinquent loans that have been overdue for more than seven years and are valued at 50 million won or less. The New Leap Fund acquires eligible delinquent loans in bulk to support borrowers who have lost repayment capacity, and then proceeds with either debt write-offs or debt restructuring based on the debtor's ability to repay.

According to Park Chan-dae, a lawmaker from the Democratic Party of Korea, as of the end of August this year, 21,433 out of the 228,293 non-performing loan cases (worth 5.1577 trillion won) acquired by KAMCO in 2000 remain. Of these, 18,010 cases (worth 366.2 billion won) are individual debts, while 3,423 cases (worth 1.4042 trillion won) are corporate debts.

On this day, Assemblyman Park asked, "The New Leap Fund will sequentially proceed with debt write-offs or restructuring starting next year, and it was said that even bonds held by public institutions could be restructured. Can long-term delinquent loans also be restructured through the New Leap Fund?"

President Jung replied, "Of course, it is possible, and for the first time this month, we plan to sell loans to the New Leap Fund."