KAMCO broadens cooperation with Asian markets on bad loan management

The Korea Asset Management Corporation (KAMCO) is expanding its cooperation with Asian financial authorities, drawing on nearly three decades of experience managing nonperforming loans (NPL) to help countries strengthen their financial systems, the state-run agency said Monday. Vietnam offers a clear example of that approach. In April, KAMCO signed a consulting agreement worth around $400,000 with the Asian Development Bank to help establish a legal framework for asset-backed securities (ABS) in the country. Over the next 25 months, the agency is set to assess Vietnam’s financial and legal environment, recommend regulatory improvements and help develop guidelines for issuing ABS. The project will also include training programs to strengthen local expertise. KAMCO is working to improve the infrastructure for actual transactions as well. In a consortium with Shinhan DS, it is undertaking a 2.5 billion won ($1.86 million) project to upgrade the Vietnam Asset Management Company’s online platform for NPL trading. The agency is also extending its work beyond individual markets through a br