In order to promote the exchange of experiences and information between Korea and Taiwan concerning the handling of the non-performing loans of financial institutions, the Central Deposit Insurance Corporation (CDIC) has scheduled a signing ceremony at 11:00 a.m. on September 21, 2006 that will take place in CDIC's auditorium (12F, No.3, Nan Hai Road, Taipei). At this ceremony, CDIC Chairman, Mr. Chin-Tsair Tsay, and Chairman & CEO of the Korea Asset Management Corporation (KAMCO), Mr. Woo-Suk Kim, will together on behalf of their respective corporations sign a Memorandum of Understanding (MOU), and thereby extend the formal bilateral cooperative relationship between the two organizations.
Since the KAMCO was established in the 1960s, it has made every effort to assist the Korean government in raising operating funds in order to deal with the non-performing loans of financial institutions, and has shown the ability to calmly confront financial shocks, and succeed in crisis situations. In recent years, it has used communications technology to develop advanced specialized mechanisms such as Korea’s first on-line public auction system (OnBid) and Bad Bank program for solving the problem of delinquent consumer credit. It has also extended its many years of professional experience into the international non-performing loan markets, becoming a top international asset management corporation in the process and serving as an important driving force in the promotion of Korea as a North-East Asian Financial Hub. These accomplishments have been universally recognized. In Taiwan, the CDIC has since 2001 been commissioned by the Executive Yuan's Financial Reconstructing Fund to deal with problem financial institutions and their non–performing loans. It has also established a mechanism to enable failed financial institutions to withdraw from the market. Its responsibility in terms of assisting the government in the promotion of its financial reform policies is similar to that of KAMCO.
In 2003, KAMCO and CDIC signed a Memorandum of Understanding for a period of three years. During this period, the two sides have cooperated closely by providing personnel training and through the exchange of information. In addition, together with the Taiwan Academy of Banking and Finance and the Bankers Association of the ROC, CDIC has invited KAMCO representatives to visit Taiwan and, through the holding of relevant training programs and conferences, has enabled them to share Korea's experiences in dealing with non-performing loans with representatives of the Taiwan banking sector. The results of such exchanges have been very fruitful.
In the future, the CDIC together with KAMCO will continue, by means of bilateral exchanges of information and personnel, to provide professional expertise, so that both countries will become more proficient in the management of non-performing loans, with a view to establishing a solid foundation for financial stability in the Asian region.