Saemaul Geumgo reported a net loss of 676.8 billion won ($676.8 million) in the first half of 2026, continuing its trend of deficits. However, the loss was approximately halved compared to the previous year due to the sale of delinquent loans and the merger of underperforming credit unions.
On August 28, the Ministry of the Interior and Safety announced the provisional operating results for the first half of 2026 from the 1,239 Saemaul Geumgo branches nationwide. As of the end of June, the net loss was recorded at 676.8 billion won, reflecting the burden of setting aside provisions for bad debts. This marks a decrease of 651.9 billion won (49.1%) from the net loss of 1.3287 trillion won in the first half of last year.
The ministry explained that despite uncertain business conditions due to a real estate market slump, increased volatility in interest and exchange rates, and capital movement amid a booming stock market, the cleanup of delinquent loans and restructuring of failing credit unions contributed to the improvement in performance. Saemaul Geumgo has completed the merger of 21 credit unions in the first half and plans to merge a total of 30 by the end of the year.
Both total assets and deposits have decreased. As of the end of June, total assets stood at 273.3 trillion won, down 13.4 trillion won (4.7%) from the end of last year. Total deposits also fell to 243.2 trillion won, a decrease of 12.1 trillion won (4.7%) during the same period.
Total loans amounted to 181.8 trillion won, down 1.3 trillion won (0.7%) from the end of last year. Household loans increased by 2 trillion won (2.4%) to 84.3 trillion won, while corporate loans decreased by 3.3 trillion won (3.3%) to 97.5 trillion won.
The overall delinquency rate improved to 6.34%, down 2.03 percentage points from 8.37% during the same period last year. However, it rose by 1.26 percentage points compared to 5.08% at the end of last year.
The ministry anticipates continued uncertainty in the financial environment due to exchange rate fluctuations and interest rate hikes in the second half of the year. It plans to share information with financial authorities through the data request and submission support system (CPC), which has been operational since March, to manage financial health in real-time.
Starting at the end of this month, the financial supervisory authority will incorporate deposit monitoring systems to respond quickly to liquidity crises. Additionally, incentives will be provided to encourage the merger of failing credit unions, and supervisory powers will be utilized to accelerate restructuring for those that do not merge.
A ministry official stated, "We aim to accelerate the trend of improving financial health through swift restructuring of failing credit unions in the second half of the year, with a goal of achieving profitability by 2028 and a delinquency rate of 3% by 2030."
* This article has been translated by AI.
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