Subsidiary MG Asset established as project implementation arm

The headquarters of the Korea Federation of Community Credit Cooperatives. [Korea Federation of Community Credit Cooperatives]
The headquarters of the Korea Federation of Community Credit Cooperatives. [Korea Federation of Community Credit Cooperatives]

MG Credit Information, a subsidiary of the Korea Federation of Community Credit Cooperatives, said Monday it has completed the establishment of MG Asset, a project implementation subsidiary created to pursue a public institution purchase-commitment program — the first such move in the credit information industry.

Wholly owned by MG Credit Information, MG Asset will acquire non-performing loans tied to development projects and convert them into public institution purchase-commitment arrangements. The strategy aims to accelerate the early recovery of bad loans while contributing to expanded public rental housing supply through the Korea Land and Housing Corporation.

To lay the groundwork, MG Credit Information signed MOUs for the LH purchase-commitment program with Daeshin Asset Trust starting in January, followed by Shinyoung Real Estate Trust and Korea Investment Real Estate Trust.

The company also built a cooperative framework with financial firms including Bookook Securities, Leading Investment Securities and mPlus Asset Management, broadening the scope of non-performing loan utilization through the public institution purchase-commitment program as part of a broader business diversification push.

"We plan to pursue new businesses centered on non-performing loans in earnest, starting with the establishment of MG Asset," a company official said. "We will secure new growth engines through continued business expansion."


forest@heraldcorp.com