S.Korea to raise up to $2 bln for US debt-report

SEOUL, July 24 (Reuters) - Korea Asset Management Corp (KAMCO) will raise up to 2 trillion won ($1.98 billion) to buy U.S. non-performing loans with Shinhan Bank and Mirae Asset Securities (037620.KS: Quote, Profile, Research, Stock Buzz), a local newspaper said on Thursday.

KAMCO, a government debt clearer, is also in talks with Merrill Lynch (MER.N: Quote, Profile, Research, Stock Buzz) on the fund, and domestic brokerage Woori Investment & Securities (005940.KS: Quote, Profile, Research, Stock Buzz) has also expressed interest in participating, the Korea Economic Daily quoted industry sources as saying.

In March, KAMCO chairman Lee Chol-Hwi told Reuters that KAMCO was in the process of raising about $1 billion to buy distressed mortgage assets from U.S. banks and expected double-digit returns from its investments.

But the Korea Economic Daily said KAMCO was seeking to expand the fund to up to 2 trillion won considering market conditions.

KAMCO officials were not available for comment on the report. ($1=1009.0 Won) (Reporting by Cheon Jong-woo; Editing by Jonathan Hopfner)