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

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  • Mr. Dong He

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.

Suggested Citation

  • Mr. Dong He, 2004. "The Role of Kamco in Resolving Nonperforming Loans in the Republic of Korea," IMF Working Papers 2004/172, International Monetary Fund.
    • Handle: RePEc:imf:imfwpa:2004/172
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    References listed on IDEAS

    as
    1. Mr. Stefan N Ingves & Mr. Steven A. Seelig & Mr. Dong He, 2004. "Issues in the Establishment of Asset Management Companies," IMF Policy Discussion Papers 2004/003, International Monetary Fund.
    2. George Soros, 1999. "The International Financial Crisis," Challenge, Taylor & Francis Journals, vol. 42(2), pages 58-76, March.
    3. International Monetary Fund, 2003. "Republic of Korea: Selected Issues," IMF Staff Country Reports 2003/080, International Monetary Fund.
    4. He, Dong, 2003. "Budget Formulation and Implementation in Korea: A Macroeconomic Perspective," MPRA Paper 9756, University Library of Munich, Germany.
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    Cited by:

    1. Dimitris ANASTASIOU, 2022. "Management and Resolution Methods of Non-performing Loans: A Review of the Literature," Springer Books, in: Hachmi BEN AMEUR & Zied FTITI & Wael LOUHICHI & Jean-Luc PRIGENT (ed.), Crises and Uncertainty in the Economy, chapter 0, pages 187-201, Springer.
    2. Nunn, Sharon, 2021. "Korea Asset Management Corporation (KAMCO): Resolution of Nonperforming Loans in South Korea," Journal of Financial Crises, Yale Program on Financial Stability (YPFS), vol. 3(2), pages 357-380, April.
    3. Metrick, Andrew, 2021. "Broad-Based Asset Management Programs," Journal of Financial Crises, Yale Program on Financial Stability (YPFS), vol. 3(2), pages 41-80, April.
    4. Byung S. Min, 2007. "Changing Pattern Of Corporate Governance And Financing In The Korean Chaebols," Economic Papers, The Economic Society of Australia, vol. 26(3), pages 211-230, September.
    5. Bholat, David & Lastra, Rosa & Markose, Sheri & Miglionico, Andrea & Sen, Kallol, 2016. "Non-performing loans: regulatory and accounting treatments of assets," Bank of England working papers 594, Bank of England.
    6. Nadège Jassaud & Mr. Kenneth H Kang, 2015. "A Strategy for Developing a Market for Nonperforming Loans in Italy," IMF Working Papers 2015/024, International Monetary Fund.
    7. Liu, Wan-Chun & Hsu, Chen-Min, 2006. "The role of financial development in economic growth: The experiences of Taiwan, Korea, and Japan," Journal of Asian Economics, Elsevier, vol. 17(4), pages 667-690, October.
    8. Diego Valderrama, 2005. "Fiscal sustainability and contingent liabilities from recent credit expansions in South Korea and Thailand," Economic Review, Federal Reserve Bank of San Francisco, pages 29-41.
    9. Mr. Daniel C Hardy, 2013. "Bank Resolution Costs, Depositor Preference, and Asset Encumbrance," IMF Working Papers 2013/172, International Monetary Fund.

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