On June 30, KAMCO reported that the first maturity of its asset purchase and lease program, which utilizes asset-backed securities, is set to occur this year, demonstrating the successful normalization of the supported companies.
The asset purchase and lease program is designed to assist companies experiencing temporary financial difficulties by allowing them to issue asset-backed securities based on their owned assets, such as factories or office buildings, to raise necessary funds. The program targets small and medium-sized enterprises seeking to improve their financial structures. KAMCO selects support recipients based on a comprehensive review of their potential for business normalization and the adequacy of their collateral assets.
Since launching the program in April 2023, KAMCO has issued asset-backed securities six times, providing approximately 408.2 billion won in liquidity to 23 small and medium-sized enterprises. In the first half of this year, it supported five companies with 84 billion won and plans to pursue a total of 160 billion won in new support by the end of the year.
Early repayment cases have already emerged. Company A, a listed mid-sized firm that received support in 2023, repaid 25 billion won six months ahead of its maturity in May. Company B, listed on KOSDAQ, also repaid 30 billion won 18 months before its maturity. Additionally, Company C, a small business, plans to repay 9.7 billion won three months ahead of its maturity.
The total early repayment amount from these three companies is 64.7 billion won. KAMCO intends to utilize the recovered funds to support new companies facing financial challenges, thereby enhancing the continuity of its assistance.
* This article has been translated by AI.
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