May 10, 2018 – The World Bank Group and Korea Asset Management Corporation (KAMCO) have committed to increasing their cooperation to promote financial stability, enhance crisis preparedness, and strengthen financial safety nets in developing countries. A memorandum of understanding (MOU) signed by the parties in April 2018 formalizes the joint commitment of both parties to work with countries to build their capacity to address distressed assets and to strengthen their policy frameworks to boost overall financial stability.
KAMCO, established in 1962, played an important role during the Asian Financial Crisis in the resolution of distressed assets in Korean financial institutions and has continued to support stability in the financial system. It focuses on the purchase and resolution of non-performing loans, restructuring corporations, assisting in the restoration of credit-worthiness of the financially-underprivileged, management of state-owned properties, collecting overdue taxes as a quasi-governmental entity, and management of Korea’s “On-Bid, On-line Public Property Disposal System.”
Drawing on KAMCO’s experience and the World Bank Group’s knowledge and convening power, the partnership will scale up technical assistance and capacity building support to national and sub-national authorities, particularly in the East Asia and the Pacific region. The partnership will be facilitated through the Seoul Center for Financial Sector Development, established at the World Bank Group Korea Office with the generous support from the Korean Ministry of Strategy and Finance. The center works to strengthen financial systems in World Bank client countries in East Asia and the Pacific.
