KAMCO is committed to support sustainable growth of the national economy through our own

innovation as a public asset management agency striving to promote values of finical and public
assets.

The year 2015 was very meaningful for KAMCO to prepare to advance to the second stage in the
wake of the era of Busan.
As the stepping stone for sustainable growth of enterprises and financial market stability, KAMCO
supported enterprise restructuring by supporting SMEs liquidity worth KRW 54.1 billion and
purchase of seven ships from ship companies to support the marine industry worth KRW 110.9 billion
through the Sale & Lease Back method, and acquired NPLs worth KRW 4.3 trillion from private
financial companies and policy financial institutes, thereby contributing to maintain a sound financial
market.

It has been 3 years since the launch of the National Happiness Fund, which helped 490,000 with debt
restructuring and 710,000 people with the Switch-Over Dream Loan, which exceeded the initial target
326,000 people.
As a result, KAMCO received the Presidential Award on 2015 Small Loan Finance Day.

We commenced 18 cases of national and private land development projects worth KRW 1.3 trillion
and strived to promote value through efficient use of assets and timely supply of necessary facilities to
the government.

To promote co-existence with Busan regions, KAMCO operates BUFF (Busan University Network of
Future Financial Leader), a talent training program, KAMbrary, small libraries in regional children
centers, and After School Learning Center, where employees become mentors and children experience
a variety of activities besides textbook teaching with children and involved in regional-oriented
various contribution activities.
KAMCO's localization efforts has been recognized as an example case of relocated public
organization, thereby receiving Education Contribution Prize, King Sejong Sharing Service Prize,
Education Seminar Top award for two consecutive years.

KAMCO will not be content with such performance but maximize our performance through
KAMCO's unique innovation based on self-innovation and simplification to become a public agency
for the people and by the people.

We would like to ask for your unwavering encouragement and continued support to KAMCO, a
public asset management agency striving to promote values of finical and public assets.

KAMCO 2015 at a glance

Supports corporate restructuring through Sales & Lease Program after asset purchase
KAMCO purchases assets of companies suffering temporal financial difficulties and leases them back
through a "Sale & Lease Back" program and provide opportunities to businesses with profitability
and technological feasibility at risk of exclusion from the market to continue their management.
(MOU with Seoul Central District Court to support corporate reconstructing)

Credit card issuance to debt restructuring faithful clients

KAMCO executed business agreements with Credit Recovery Committee and KB Card and issued a
small amount credit card to debt restructuring faithful clients. As of the end of Feb. 2016, over 9,000
people received the credit card.
(MOU with Credit Recovery Committee and KB Card for issuing a small amount credit card)

Acquired 4.3 trillion won NPLs

KAMCO acquired bad debt worth KRW 4.3 trillion, a 40% increase year-on-year through aggressive
acquiring marketing and efforts to pioneer new markets, including non-monetary institutions takeover
task briefing.

Nationwide campaign to prevent voice phishing

Our employees conducted a relay campaign to prevent voice phishing" in 11 major cities nationwide,
including Sajik Baseball Stadium in Busan due to the increase of voice phishing posing as KAMCO
and the National Happiness Fund. We aim to ensure stability of national economy and strengthening
financial dealings, including credit recovery support of the financially underprivileged.
(Voice phishing preventive campaign)

 Supports the sagging industry

As a reliefer of the marine industry stagnated due to the global financial crisis, KAMCO initiated
support with KAMCO's own account in recognition of the operability of the Restructuring Fund and
management performance. We supported shipping finance worth KRW 110.9 billion last year and
KAMCO Ship Investment Management has launched as our subsidiary.
(November 13, 2015 Vessel acquiring contract)

KAMCO's public assets deposition system OnBid accumulated transactions topped 270,000
transactions, 125,000 successful bids, and KRW 50 trillion transaction amount.

Appointed as a training institute for occupation of public officer

KAMCO has been appointed as a training institute for occupation of public officers by the Human
resources committee, a training institute for occupation of public officers and started professional
career training for national asset management pubic officers through the HR Center. Our practiceoriented training contributes in improving public officers' professionalism.
(State credit management curriculum of the HR Center)

Promotion of national property management innovation through introduction of drone

KAMCO introduced a drone to be used for a nation property survey to seek for innovation in the
national property management. We will be able to provide accurate surveys of assets or topographies
and woodland areas that were difficult for human to conduct. With this, we expect to perform more
surveys than a person can handle a day.

Promotion of the largest new development projects of national and public properties
In 2015, KAMCO approved 12 consignment development (expenses worth KRW 1.619 trillion,
including Narakiwum Gwanggyo Complex, Jeju Integrated Official Residence) and approved fund
developments as well as six new consignment development of public properties (expenses worth
KRW 250 billion, such as Seoul and Seongdong-gu Complex Government Office Building) and
solidified its business foundation.
(Narakiwum Building ground-breaking ceremony)

Expansion of N. Korea's asset research and installation of the Unification Asset Research
Center Unified Research Center

KAMCO established the Unification Asset Research Center to perform research on the North
Korea and the national asset division area of a unified Korea and conducts systematic and
professional unified asset research along with a Unification National Asset Research Forum.

Enhancing Asset Soundness of Financial Institutions

Serves as a safety net for the national economy by liquidating NPL

Motivation to overcome national financial crisis

During the Asian crisis in 1997, KAMCO has contributed greatly to overcoming economic crisis by
acquiring and liquidating NPLs in financial institutions worth KRW 111.6 trillion through the NPL
Resolution Fund.
As credit defaulters stem from the 2003 credit card upheaval created a social problem, KAMCO
handled NPLS worth KRW 7.5 trillion, including credit card account worth KRW 6.5 trillion, which
stabilized the financial market and earnestly began supporting credit recovery of individuals.
To proactively cope with the global financial crisis, KAMCO established the Restructuring Fund in
2008. it involved in acquiring delinquent PF loans from savings banks and dealing with the liquidity
crisis in the maritime industry NPL corporate reconstructuring asset 11.4 the
stabilization of the domestic financial market prevented the crisis from spreading to the national
economy.

Constant support for financial market soundness

In 2015, KAMCO acquired NPLs worth KRW 4.3 trillion from private financial companies and
public institutions and help to maintain the soundness of the financial market. We are endeavoring to
support rehabilitation of failed SMEs through debt restructuring after acquiring NPLs possessed by
Korea Credit Guarantee Fund and Technology Guaranteed Fund.

Corporate restructuring support through NPLs acquisition

Supports SMEs' liquidities through a lease program after asset purchase

KAMCO operates Sales & Lease Back program to support resurgences of those SMEs that have
excellent business value and technology but suffer from temporal liquidity crises. After a company
sells its business assets, such as plants and office buildings, they can lease them to maintain their
business foundation and the program is also effective for supporting SMEs with liquidity crises as
they can repurchase their properties back after, management normalization.
We executed a business agreement with eight banks, including SBC and IBK and the Seoul Central

District Court to improve management normalization possibilities of enterprises by matching

operating fund and debt restructuring between collaborating agencies. Our restructuring support
maximization through the public-private received is recognized as an excellent example of practicing
the Government 3.0 value.
In 2015, we acquired 5 cases of SME assets worth KRW 54.1 billion to help them overcoming
liquidity crisis. In 2016, KAMCO will continue to support financial structure improvement through
cooperation strengthening between organizations and expanding financial structure improvement of
enterprises.

<Sales & Lease Program support after purchasing assets in 2015>

The
Number of
Supportin
g
Enterprise

Amount of
Support

Employment
Maintain
Effect
(Number of
Employees)

Financial Structure
Improvement
Details

Financial Support for

Collaborating Organization
Amount of
Support

Details

Supporting Shipping Companies through Operation of the Shipping fund

In 2015, we invested KRW 110.9 billion and acquired seven ships of five shipping and in progress of
fund support for the industry in 2016.
KAMCO signed a business agreement with public institutions such as KDB, EXIM Bank, and KTIC
in March 2016 and will participate in competitiveness strengthening policies through a support
program/

<Shipping Fund Support through the Restructuring Fund>

The Number
of Shipping
Companies
Supported

The
Number of
Purchased
Ships

Total of the Ship

Purchased

The Amount of
Fund Invested

Fund Collected

<Details of shipping fund provided through KAMCO's own account in 2015>

Return Rate

The Number of
Shipping Companies
Supported

The Number of
Purchased Ships

Total of the Ship

Purchased

Amount of Investment

Launching of global cooperative projects through spreading its expertise in national

management assets

Building Asian financial safety net and strengthening cooperation through IPAF
In 2014, Korea Deposit Insurance Co., China Orient Asset Management Corp. and Zheshang Asset
Management Corp joined and in 2015, Thailand DPA joined IPAF where the number of associate
members have expanded to 11. KAMCO continues knowledge sharing with relevant institutions; the
3rd Representative Summit and International Meetings in Beijing, China in Oct. 2015, international
seminars and training in Ulaanbaatar, Mongolia in November.
In addition, we signed a business agreement with Kazakhstan, Hungary, and Colombia in 2015, which
enables us to build an international cooperation relation with 24 organizations from 17 countries
around the world.

Customized policy recommendations through KSP (Finance's Knowledge Sharing Program)

We successfully carried out policy consulting for Vietnam's DATC, NBK and FPL subsidiary and
contributed in stabilizing financial markets of the relevant countries.
In 2015, we launched the 2nd Kazakhstan KSP to provide measures for strengthening organizational
capacity and efficient management of NPLs of FPL and NPL and the 3rd Vietnam system consulting
KSP for building an online asset disposition system for efficient process of NPLs.

Supports Individual Credit Recovery

Expanding support in micro finance

We established a Credit Recovery Fund to support financially challenged individuals that expanded
caused by the global financial crisis in 2008 and expanded and reformed the fund to the National
Happiness Fund in 2013.

<Status of KAMCO Credit Recovery, Finance of Low-income Families, Self-reliance Support >
Finance of LowEmployme Tota
Credit Recovery (Debt Restructuring)
income Families
nt Support l
(Loan)
Switc
Classificati
Basic
KAMCO Hanmaeu
National hon

Heemangmo Living
Microcred

's
m
Happine Over

ah
Securit
it Loan
Account Badbank
ss Fund Dream
y
Loan

<Performance of National Happiness Fund (Mar. 2013 - Feb. 2016)>

Classification

Debt
Restructuring

Switch-Over
Dream Loan

The
Number of
Applicants

490,000

Details

Principal Debt KRW 3.21 trillion KRW

1.49 trillion*

Avg. lending rate 34% convert to 10.7%

Performance
Debt amount has reduced by
53.7%
(KRW 6.08 million per
person)
Interest rate has reduced by
23.3%p
(KRW 8.85 million per
person in average)

* As a result analysis of 283,000 people (of 490,000 people) who newly purchased and applied
through the National Happiness Fund

Strengthening the self-supporting base of financially challenged individuals

Our effort to support credit recoveries of the underprivileged continued in 2015. We had a business

agreement with KB Card and Credit Recovery Committee and issued a small amount credit card with
limited amount of KRW 500,000 per month to restructuring faithful clients. As of February 2016, the
card has been issued to 9,000 people and achieved a result where they desired for credit recovery.
(11,286 people as of the end of May)In 2015, we signed a business agreement with Busan District
Court, following the Seoul Central District Court in 2014 to support debtors who unable to take
advantage of restructuring due to lack of ability to repay to rehabilitate their credit status by using
individual rehabilitation and bankruptcy programs of the court at affordable expenses in timely
manner.
KAMCO is currently striving to improve systems for effective personal credit recovery and additional
relieve of financial burden, such as expansion of microcredit loan limit and interest differential cut for
faithful debtors, lowering the interest rate of the Switch-Over Dream Loan, expansion of the
redemption rate of the restructuring system.

Strengthening SMEs and house poor support through provision of the foundation for NPL
integrated management in the public sector
KAMCO continue with acquiring NPLs in public institutions, including Credit Guarantee Fund, Kibo
Technology Fund, and Small Business Corporation and expands the target for acquiring to promote
unified NPLs in the public sector. In 2015, we organized a foundation to expand our support for house
poor and acquisition target bond area through Bogeumjari Loan overdue bond of Korea Housing
Finance Corporation.

<KAMCO's credit recoveries, micro finance, and self-reliance support program>

Loan rate 3-4% annually, maximum five years

Public asset management of the state and local governments

Promotion of national asset value as a national asset management organization

Expansion of the national revenue through specialization of the general national

As of the end of 2015, KAMCO is exclusively in charge of all 620,000 parcels owned by the Ministry

of Strategy and Finance, worth approximately KRW 19 trillion. We introduced business processes
according to types of assets to promote usability and values of the national property. As a result of
focusing on reducing unauthorized possession with urban areas and promoting professionalism and
substantalization of the national asset management, we were able to contribute in increasing national
revenue worth KRW 7.8 trillion since the beginning of our management service of national assets in
1997.

<KAMCO's National Property Management History>

1997

2005

Launched national

Launched national
property development
projects

property
Management service

2012
Launched consignment
service of National
property
Management fund

2013
Began exclusive
management for
national general assets

Building of a Foundation for National Administrative Property

KAMCO helps effective management and utilization of national land through actual survey for the
use of administrative properties, national lands, used as roads and rivers or areas with buildings, such
as government offices or schools. We completed an actual survey for 160,000 parcels of
administrative properties in 2015, and currently implement a survey for 310,000 parcels in 2016.
Actual surveys of administrative assets are set to use a drone (a pilotless airplane)and permanent
management systems, where productivity and accuracy of surveys will improve dramatically and
boost the quality of administrative asset management property. The effectiveness of surveys of
National Property Management by using a drone has been recognized and also selected as "2015
Public Institute Management" by the Ministry of Strategy and Finance as a best practice.

<Administrative and General Property>

Classification
Administrative
Property
General
Property

Definition
National property under preservation, such as public properties,
government office buildings, government residences as well as
roads and rivers, and cultural assets
All nation property, except administrative property

Management Institute
Central administrativ
e agencies
Ministry of Strategy
and Finance

 Premeditate and systematic national property through the National Property Management Fund
KAMCO is operating the National Property Management Fund installed in 2012 for seamless supply
and demand management of national property. The fund KRW 1 trillion organized by earning from
disposal and loan of national properties are used for purchasing national land reserves in consideration
of future demand for the government office and supply of office buildings and official residences of
government agencies.

Creating value through national property development

As the government's national property management strategy has changed from preservation to
utilization, KAMCO is enhancing values through national asset development. We aim to fulfill
construction demand for public facilities and minimize national finance investment and enhance asset
value of underdeveloped national properties through development of private-public complex buildings
and necessary facilities for the nation targeting idle general properties or low-activity administrative
assets.
To improve the utility of national properties, KAMCO has successfully conducted 12commissioned
national land development projects as of December 2015, starting with the Narakiwum Jeo-dong
building, which was reconstruction of the old Namdaemun District Tax Office Building, Sejong R&D
Complex, Sejong Village, and one national property fund development.
In 2015, we constructed Sejong Officer Residence, our first project of a fund development project and
help early settle down of public officers in Sejosi. We are continuing with fund development projects
through approval of new projects of the Busan Complex Office Building, and we are dedicating our
capabilities for value expansion of national lands based on new project approval of 11 consignment
developments. KAMCO has been expanding its role that supports national development projects, such
as the Narakiwum Policy Training Institute that helps reduce finance based on intensive facilities by
using comprehensive Medical Complex, the first private and public medical administrative town in
Korea.