The National Federation of Fisheries Cooperatives (Suhyup) announced on the 8th that it has launched a combined branch where the mutual finance 'Suhyup' and the first-tier financial institution 'Sh Suhyup Bank' operate together in one location.
The combined branch was established to provide customers with a variety of financial services from both first- and second-tier financial sectors, marking a first attempt in the financial industry. The combined branch takes the form of a cooperative located within part of the Suhyup Bank branch space.
Currently, combined branches have opened and started operations last month at three Suhyup Bank financial centers located in Seoul (Euljiro, Changdong Station, Gyodae Station), where 2 to 4 member cooperatives are housed. At Euljiro, Gangwon Goseong-gun, Taean Nambu, Jeonnam Dongbu, and Hadong-gun Fisheries Cooperatives are located; at Changdong Station, Masan, Geoje, and Sacheon Fisheries Cooperatives; and at Gyodae Station, Yangyang-gun and Yeongdeok Bukbu Fisheries Cooperatives are housed respectively.
Customers can receive consultations on various bank and mutual finance loan products in one space. Since demand for first-tier banks and second-tier mutual finance varies depending on creditworthiness and loan limits, the National Federation of Fisheries Cooperatives explained that the combined branch can create a synergy effect in terms of loan business.
Small-scale cooperatives, which had difficulty entering the metropolitan area due to financial constraints, now have a path to expand their business base and generate new revenue through the combined branch. A representative from the National Federation of Fisheries Cooperatives stated, "The loan sales channels of cooperatives based in local areas will expand to the metropolitan area, serving as a channel to create new revenue."
When selecting cooperatives to enter the combined branch, the National Federation of Fisheries Cooperatives prioritized those without branches in the metropolitan area. This reflects the first pledge of Labor Jin, Chairman of the National Federation of Fisheries Cooperatives, to allocate limited resources to cooperatives facing greater financial difficulties in order to achieve balanced development among cooperatives.
At the commemorative ceremony for the establishment of the mutual finance combined branch, Chairman Noh said, "The purpose of the federation's establishment is to help cooperatives thrive, and the combined branch was promoted as part of measures to improve cooperative management," adding, "We will continue various efforts next year to improve the management of member cooperatives."
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