The Role of Kamco in Resolving Nonperforming Loans in the Republic of Korea

Dong He

No 2004/172, IMF Working Papers from International Monetary Fund

Abstract: This paper aims to provide a balanced assessment of Korea Asset Management Corporation's role in resolving nonperforming loans in the aftermath of the 1997-98 financial crisis. It argues that KAMCO's incentive to dispose of NPLs can be explained by a strong social desire for a recovery of public funds injected for financial sector restructuring. KAMCO's market-making role also helped overcome informational and coordination problems in the development of a market for distressed assets.

Keywords: WP; KAMCO purchase; KAMCO NPL portfolio; governance structure; KAMCO bond; KAMCO's purchase; public funds; asset management companies; bank restructuring; classification standard; Daewoo loan; Nonperforming loans; Loans; Distressed assets; Financial sector; Asset management; Southeast Asia (search for similar items in EconPapers)
Pages: 23
Date: 2004-09-01
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Citations: View citations in EconPapers (12)

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