The government has extended the 'Special Management Task Force for Saemaul Geumgo' until the end of the year, originally scheduled to operate only through the first half of 2026. Following the merger of 21 credit unions in the first half of the year, further restructuring and joint inspections are planned for the second half.
On July 24, the Ministry of the Interior and Safety, along with the Financial Services Commission, the Financial Supervisory Service, the Korea Deposit Insurance Corporation, and the Bank of Korea, announced that the task force will continue its operations until the end of this year.
The task force has been conducting weekly video conferences to continuously monitor management indicators, share information, and discuss joint inspections, restructuring, and regulatory improvements. The Bank of Korea has been participating in the task force since February.
According to the government's ongoing monitoring, the management indicators of Saemaul Geumgo have shown an improving trend compared to the same period last year. Restructuring efforts are also accelerating, with 21 credit unions merging in the first half of this year, three times the number from the same period last year (seven). The number of merged credit unions is expected to rise sharply, with five in the second half of 2023, 12 in 2024, and 25 in 2025.
Since the end of March, Saemaul Geumgo has been submitting data through the Financial Supervisory Service's 'CPC Support System.' To enable real-time monitoring of deposit trends, the financial authorities are also working on a computer system that will be operational in August.
Since May, the Ministry of the Interior and Safety, the Korea Deposit Insurance Corporation, and the Saemaul Geumgo Central Association have been operating a 'Restructuring Promotion Task Force.' The Korea Deposit Insurance Corporation will continue to support investigations into the causes of insolvency and provide management consulting even after the mergers.
The government completed inspections of 35 credit unions in the first half of the year. In the second half, an additional 22 credit unions will be inspected, bringing the total to 57 for the year. If any intentional misconduct or serious negligence by employees is identified during inspections, strict penalties will be imposed.
The government has extended the special management due to increasing volatility in the financial markets, including interest rates and exchange rates, as well as capital movements resulting from a booming stock market, which may lead to a challenging management environment in the second half of the year. The government plans to continue soundness management through cooperation among related agencies while discussing long-term soundness maintenance and sustainable development strategies for Saemaul Geumgo.
* This article has been translated by AI.
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