The Role of Kamco in Resolving Nonperforming Loans in the Republic of Korea
Summary:
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.
Series:
Working Paper No. 2004/172
Subject:
Asset and liability management Asset management Distressed assets Economic sectors Financial institutions Financial sector Financial sector policy and analysis Loans Nonperforming loans
English
Publication Date:
September 1, 2004
ISBN/ISSN:
9781451858600/1018-5941
Stock No:
WPIEA1722004
Pages:
23
Please address any questions about this title to publications@imf.org