Samjong KPMG took top spot in South Korea’s non-performing loan (NPL) advisory market in 2020 from Yeil Accounting Corp, which had led the table for three years.
Data compiled by several advisory firms shows that Samjong KPMG advised on NPL sales worth 1.19 trillion won ($1.1 billion), a 853.7 billion won increase from 2019.
The market had been dominated by Yeil and EY Hanyoung, but it was disrupted when Industrial Bank of Korea (IBK), the most active seller of bad loans, switched advisers.
EY Hanyoung could no longer provide advisory services for IBK after it was appointed as external auditor for the bank in 2020, and its place was taken by Samjong KPMG, Samil PwC and Deloitte Anjin.
Samjong KPMG helped IBK sell bad loans worth 483.5 billion won, about a third of the bank’s total NPL transaction volume in 2020. It also advised Korea Development Bank, Kyongnam Bank and Hana Bank on NPL sales.
Yeil slid to second after advising on deals worth 1.04 trillion won, a decline of 440 billion won. It advised IBK on 481.7 billion won of bad loan sales, down from 619.6 billion won. An overall slowdown in the NPL market also affected its performance.
EY Hanyoung fell to third, advising on 471.7 billion won of NPL sales, a sharp drop from 1.2 trillion won in 2019 that was largely due to lost deals involving IBK.
Samil PwC and Deloitte Anjin came fourth and fifth, advising on deals worth 462 billion won and 407.6 billion won respectively. (Reporting by Hee-yeon Han)