KAMCO broadens cooperation with Asian markets on bad loan management

The Korea Asset Management Corporation (KAMCO) is broadening its collaborations with Asian financial entities, leveraging its extensive knowledge of managing nonperforming loans (NPL) acquired over nearly three decades, according to the state-run agency. Vietnam serves as a prime example of this strategy. In April, KAMCO entered into a consulting agreement valued at approximately $400,000 with the Asian Development Bank to assist in creating a legal framework for asset-backed securities (ABS) in the nation.

Over the subsequent 25 months, the agency will examine Vietnam's financial and legal landscape, propose regulatory enhancements, and aid in the development of guidelines for issuing ABS. The initiative will also incorporate training programs to bolster local expertise.

In addition to strengthening individual markets, KAMCO is enhancing the infrastructure for actual transactions. In a consortium with Shinhan DS, the agency is part of a 2.5 billion won ($1.86 million) project aimed at upgrading the Vietnam Asset Management Company's online platform for NPL trading. Furthermore, KAMCO is expanding its reach beyond individual markets through broader cooperation efforts.