Central Deposit Insurance Corporation (CDIC) and Korea Asset Management Corporation (KAMCO) signed a Memorandum of Understanding (MOU) to establish formal cooperative ties at 11:00 a.m. on August 22 at the CDIC Auditorium (12F, 3 Nanhai Rd., Taipei). The MOU seeks to promote friendly relationship between Taiwan R.O.C. and Korea and enhance the exchange of experience between the two countries in the resolution of distressed assets of financial institutions.
Due to the persistent sluggishness of the global economy, the ratio of non-performing loans at financial institutions has risen continuously. This has become an issue that governments around the world need urgently to address. During the financial crisis of 1997, Korea suffered from the deterioration of both its financial and corporate sectors. As a result, the amount of non-performing assets at financial institutions in Korea had risen sharply and continued to head higher. In order to restore financial stability, KAMCO was reorganized in 1997 and put in charge of handling the non-performing assets of Korean banks. Since then, KAMCO has adopted aggressive and cutting edge techniques in the overall planning and operation of its Non-Performing Asset Fund (NPAF), in order effectively to resolve the non-performing assets of financial institutions and promote the sound operations of financial institutions and companies. After executing these tasks, KAMCO has achieved outstanding results and earned international praise. CDIC signed the cooperation MOU with KAMCO in order to learn the expertise and experience of KAMCO in the resolution of non-performing assets. Such exchanges will enhance the ability of the CDIC to efficiently dispose of non-performing assets in the capacities of trustee of the Financial Restructuring Fund and liquidator under the Banking Law, as well as to promote closer cooperation between Taiwan and Korea.
CDIC Chairman Tsay, Chin-Tsair presided over the signing ceremony for the cooperation MOU. Mr. Tsay and KAMCO Chairman & CEO Mr. Yon, Won-Young represented the two sides in signing the Memorandum, which will expand the cooperation and experience exchanges between the two sides in resolving distressed assets. In future the two sides will share expertise and experience in order to raise the efficiency of their operations in this area. Such exchanges will be facilitated by appointing official contact representatives and by arranging meetings, training programs, and information/personnel exchanges.