South Korea's state-run debt clearer said Tuesday it has bought bad debt worth 4.2 trillion won ($3.62 billion) this year and plans to expand the amount next year to help banks and policy lenders have clean balance sheets.

"We've bought 2.1 trillion won in non-performing loans from financial institutions and another 2.1 trillion won of debt from policy lending agencies so far this year," Hong Young-man, chief of the Korea Asset Management Corp., told reporters.

The figure for 2015 is a 35-percent increase from the previous year.

"Next year, we will further expand the amount by taking on mortgage debt overdue from the Korea Housing Finance Corp. and other debt from the Korea Credit Guarantee Fund and the Korea Technology Finance Corp.," he added.

KAMCO has ramped up its purchases of banks' bad debt and other property-backed loans extended by local savings banks following the
2008 global financial crisis.

The agency also pledged to accelerate efforts to help ailing firms stand on their own feet.

"KAMCO has spent more than 100 billion won to help struggling small- to mid-sized companies this year, and will funnel 100 billion won every year for firms' restructuring process," Hong stressed. (Yonhap)