Suhyup to Pursue Transition to Financial Holding Company Starting Q3 Next Year

[Asia Economy Reporter Bu Aeri] The National Federation of Fisheries Cooperatives (Suhyup) announced on the 23rd that it is pursuing a plan to establish non-bank affiliates such as asset management, securities, and capital companies under Suhyup Bank in order to transition to a financial holding company system.

Suhyup held a ceremony at its headquarters in Songpa-gu, Seoul, to commemorate the early repayment of public funds and declared the "Suhyup Future Vision" containing this plan.

The vision includes three key initiatives: restructuring the governance of financial businesses, expanding support for fishermen and member cooperatives, and strengthening Suhyup's business competitiveness.

First, Suhyup plans to acquire small non-bank financial companies such as asset management firms with high growth and profitability relative to invested capital by the first half of next year.

Once the minimum subsidiary requirements for requesting approval as a financial holding company are met, it plans to actively pursue the establishment of the financial holding company starting from the third quarter of next year.

After establishing the financial holding company, the plan is to incorporate non-bank financial companies such as securities and capital firms as subsidiaries under the financial holding company and complete business diversification by 2030.

Suhyup will increase the scale of support for fishermen and member cooperatives to 200 billion KRW annually, based on bank dividends that were previously used only for repaying public funds.

Suhyup received 1.1581 trillion KRW in public funds from the government in 2001, and in September repaid 757.4 billion KRW in government bonds to the Korea Deposit Insurance Corporation, fully repaying its debt to the government after 21 years.

Support for improving living conditions in fishing villages and for education, scholarships, and medical care for fishermen will also be expanded to around 100 billion KRW annually.

Management support for Suhyup member cooperatives will be increased to around 100 billion KRW annually to promote regional fisheries development.

In his commemorative speech, Lim Joon-taek, Chairman of the National Federation of Fisheries Cooperatives, stated, “With the repayment of public funds as an opportunity, we will come closer to fishing villages and the fisheries industry and be reborn as a cooperative that contributes to the economic development of the Republic of Korea.”