Samil PwC noted that on the 22nd, it held a seminar titled "Settlement of account and outlook for the NPL market" in collaboration with K-Clavis Asset Management at the Conrad Seoul in Yeouido, Seoul.
More than 50 officials from 15 institutions, including local banks, the National Mutual Finance Association, and the Korea Asset Management Corporation, attended the seminar, the first of its kind in the NPL industry.
In the first session, Myung Bon-ho, head of the NPL Center at Samil PwC, presented on trends in the NPL market. He emphasized, "Despite the significant increase in sales volume last year, there has been no meaningful entry of new investors into the market," adding, "It is essential to regularize the sale of bad debts in the mutual finance sector to encourage new entries of NPL investors in the medium to long term and to expand the market's absorption capacity."
Following this, Myung proposed, "For mutual finance institutions to manage the ratio of non-performing loans steadily in the future, it is necessary for the market for publicly selling bad debts to operate on a regular basis like the first financial sector, and especially during the period of decreasing NPLs in the first financial sector, it will provide a good investment alternative for investors."
In the second session, Kim Seon-min, head of K-Clavis Asset Management, presented a private bad bank model through a fund aimed at effectively resolving bad debts of local banks and mutual finance institutions. This is a fund contributed by policy institutions such as the Korea Asset Management Corporation.
Kim emphasized, "This fund can serve as a bad bank like UAMCO, which was contributed by commercial banks," adding, "This allows local banks and mutual finance institutions to secure a channel for effectively selling off bad debts, and from an investment perspective, NPLs, which are currently undervalued due to supply and demand imbalances, can serve as an excellent alternative investment asset."
In the third session, Kim Hyo-geon, head of the PF normalization center at Samil PwC, presented on trends in the real estate PF market. He analyzed the main indicators related to real estate PF in comparison to the past savings bank crisis. He also discussed recent changes in market structure and business income structure, along with an outlook for the real estate PF market this year.
Kim noted, "While the normalization of PF business sites is progressing gradually due to efforts by government authorities and financial institutions, it appears that the normalization of business sites located in the provinces is relatively slow," adding, "This year is a crucial time for more active policies and market participation to normalize provincial business sites."
Samil PwC was selected as the advisor for the sale of bad debts for all mutual finance institutions in the country last year by collaborating with the NPL Center and the PF Normalization Center. K-Clavis Asset Management was chosen at the end of last year as the manager of a bad debt fund for purchasing bad debts held by local banks by the Korea Asset Management Corporation.