Saemaul Geumgo is accelerating its recovery efforts. Amid ongoing burdens from loan loss provisions due to a sluggish real estate market, the organization aims to reduce losses through the management of non-performing loans (NPLs) and operational efficiency, with a goal of achieving profitability by 2028.
According to the Saemaul Geumgo Central Association, 1,251 Saemaul Geumgos across the country sold a total of 3.4783 trillion won in non-performing loans in the first half of this year.
Of this amount, 3.1881 trillion won was sold through MG Asset Management Company (AMCO), which specializes in managing non-performing loans and was established in July of last year. The remainder was handled through NPL funds, the Korea Asset Management Corporation (KAMCO), and asset securitization.
As the cleanup of non-performing loans has intensified, the delinquency rate has begun to decline. The delinquency rate for Saemaul Geumgo rose to 8.37% at the end of June last year but fell significantly to 5.08% by the end of the year.
Saemaul Geumgo is also collaborating with the financial sector to address non-performing loans. In May of last year, it established an NPL fund worth 217.2 billion won in partnership with four regional banks, including Busan Bank and Gwangju Bank. This initiative aims to address troubled businesses held by Saemaul Geumgo and regional banks by next year. In December, it formed a mutual finance NPL fund worth 132.5 billion won with the National Credit Union Federation of Korea, which will operate until the end of this year.
Restructuring efforts are also gaining momentum. In the first half of this year, Saemaul Geumgo merged 21 credit unions and aims to merge a total of 51 by the end of the year.
A representative from the Saemaul Geumgo Central Association stated, "Saemaul Geumgo is fully committed to managing soundness to restore trust both internally and externally."
* This article has been translated by AI.
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