S Korea's debt clearer to buy $13 bln bad loans in 2010

The state-run debt clearer Korea Asset Management Corp. (KAMCO) plans to buy troubled assets worth 15 trillion won (13 billion U.S. dollars) in 2010 by unloading a state fund of 10 trillion won (8.7 billion U.S. dollars) as part of its company restructuring move, the company chief said Monday.

KAMCO will move forward to cross out bad debts from financial companies as well as taking over assets from firms that go through restructuring move, KAMCO Chairman Lee Chul-hwi said in his New Year's address.

The debt clearer also plans to buy 1.2 trillion-won (1.04 billion U.S. dollars) worth of household bad debts, so as to prevent the loans from going sour, Lee said.

KAMCO cleared distressed debts worth 9.6 trillion won (8.32 billion U.S. dollars) in 2009, nearly three times the amount purchased a year earlier.

South Korea launched a public fund of 20 trillion won (17.3 billion U.S. dollars) in May last year in order to help lenders recapitalize amid the global financial crunch.

Source: Xinhua