"1.38 Million Noryanwoosan Subscribers... 585 Billion KRW Profit from Asset Management Last Year"

Korea Federation of SMEs Approves 2020 Yellow Umbrella Fund Settlement
Annual Operating Yield 4.94%... Reserve Fund Accumulated to 16 Trillion Won

[Asia Economy Reporter Kim Bo-kyung] Last year, the number of new subscribers to the Noryanwoosan increased by about 274,000, bringing the total number of subscribers to 1.38 million. The total mutual aid fund amounted to 14.8 trillion KRW, and through asset management last year, a profit of 585 billion KRW was realized.

The Korea Federation of SMEs announced on the 3rd that it held the Small Business and Self-Employed Mutual Aid Management Committee and approved the settlement plan for the Noryanwoosan for last year. Noryanwoosan is a mutual aid system for small businesses and self-employed individuals to prepare retirement funds (lump sums) for business owners, managed and supervised by the Ministry of SMEs and Startups under the Small and Medium Enterprise Cooperative Act, and operated by the Korea Federation of SMEs.

The Small Business and Self-Employed Mutual Aid Management Committee is a committee that deliberates and decides on matters related to the operation and management of Noryanwoosan. It consists of 11 members, including the chairman of the Korea Federation of SMEs (chairman) and experts from government, finance, small business, insurance, and legal fields.

At the committee meeting held that day, the business operation performance and asset management status for 2020 were comprehensively reviewed, and the settlement plan was finalized.

Last year, the number of new Noryanwoosan subscribers was 274,000, recording a total of 1.38 million subscribers. The total mutual aid fund was 14.8 trillion KRW, of which managed assets amounted to 14.5182 trillion KRW. The asset management yield last year was 4.94%, achieving a profit of 585 billion KRW.

The Korea Federation of SMEs stated that to secure the stability of the mutual aid fund, reserves (mutual aid contributions and interest reserves) of 16.0425 trillion KRW were accumulated.

To support small businesses and the self-employed struggling due to COVID-19, Noryanwoosan lowered loan interest rates by 0.5 percentage points (from 3.4% to 2.9%) starting in February last year, and from December, it has been implementing interest-free medical and disaster loans.

From January this year, the base interest rate was raised (from 2.1% to 2.2%). Loan interest rates have been lowered from 2.9% to 2.8%, among other efforts to support business stability.

Kim Ki-moon, chairman of the Korea Federation of SMEs, stated, "Noryanwoosan has faithfully served as a social safety net for small businesses and the self-employed by paying out 3 trillion KRW in mutual aid funds to 390,000 people so far."

He added, "We will continue to make our best efforts to ensure that subscribers benefit through sound asset management, continuous system improvements, and the provision of various welfare services."