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

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.Bank restructuring;financial sector, bonds, financial institutions, asset management, deposit insurance, financial crisis, asset management companies, financial system, asset classification, cash flows, reprivatization, crisis management, discount rate, financial markets, interest coverage ratio, treasury bonds, currency crisis, guaranteed bonds, bond, bond offerings, present value, discount rates, cash flow, capital adequacy, debt restructuring, housing bond, future cash flow, financial sector crisis, recapitalization, corporate sector, stock exchange, prudential regulation and supervision, liquidity support, banking crises, financial restructuring, prudential regulation

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Research Papers in Economics

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Last time updated on 10/24/2014

This paper was published in Research Papers in Economics.

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