The Teachers' Mutual Aid Association Reports Net Profit of 437.4 Billion KRW Last Year

9 Consecutive Years of Profit Since 2014

The Korea Teachers' Credit Union announced on the 21st that it achieved a net profit of 437.4 billion KRW in last year's financial settlement. It has maintained a surplus for nine consecutive years since 2014.

As of the end of last year, total assets amounted to 56.9289 trillion KRW, an increase of 4.1491 trillion KRW compared to the previous year. Among total assets, investment assets accounted for the largest portion at 76.0% (43.276 trillion KRW). Member loans accounted for 19.8% (11.2655 trillion KRW), and other assets made up 4.2% (2.3874 trillion KRW).

This year, the reserve funding ratio stands at 109.2%, maintaining above 100% steadily for five consecutive years since 2018. The reserve funding ratio indicates the capacity of the Credit Union to pay members assuming all members claim their salaries simultaneously.

Despite the resurgence of COVID-19 and inflationary pressures, the Teachers' Credit Union achieved fund operation income of 1.0461 trillion KRW and a yield of 2.4% last year. Among investment assets, the real asset investment sector recorded the highest yield at 12.3%. The corporate finance sector also showed a stable yield of 8.9%. However, due to the global stock market downturn and rising bond yields, the stock and bond sectors recorded yields of -22.9% and -2.9%, respectively. These yields are based on average balance yields, including realized and unrealized gains and losses.

The domestic real estate sector achieved a yield of 19.3% through asset value increases in key offices such as Grand Central and Samsung Station Autoway Tower, as well as timely sales of Pangyo Alpharium Tower. The domestic corporate finance sector recorded approximately 7.5% yield through Medit recapitalization by UCK Partners. The domestic and overseas infrastructure sector achieved about 7.9% yield through partial sales of Aberdeen PPP infrastructure investment assets.

Last year, the asset allocation by asset class was stocks 13.8% (5.9646 trillion KRW), bonds 13.2% (5.706 trillion KRW), corporate finance 26.9% (11.6313 trillion KRW), and real asset investments 46.1% (19.9741 trillion KRW). The domestic and overseas allocation was 43.9% domestic and 56.1% overseas.

This year, the asset allocation by asset class will be managed flexibly within allowable ranges according to market conditions. The target domestic and overseas allocation is 43.1% domestic and 56.9% overseas. The Teachers' Credit Union sets annual asset class and domestic/overseas allocation targets based on the principle of diversified investment. The fund operation target yield for 2023 is 4.7%.

Kim Sang-gon, Chairman of the Korea Teachers' Credit Union, said, “Our organization diversified investment risks and income sources to achieve stable yields in 2022. In 2023, we will actively respond to rising interest rates and external variables through selective investment in high-quality projects and portfolio diversification to enhance profitability and stability.”