Korea Teachers' Credit Union Raises Long-Term Savings Retirement Benefit Rate to 4.90%

Rising Market Interest Rates and Deductible Association Performance Reflected
Determined by Adding Spread to Benchmark Interest Rate
"Decision Made to Return Management Performance to Members"

The Korea Teachers' Credit Union announced on the 20th that "from July 1, the long-term savings retirement benefit rate will be increased by 0.30 percentage points from the existing 4.60% to 4.90%."

This increase is attributed to the significant rise in benchmark interest rates due to last year's increase in market interest rates and the Credit Union's excellent management performance, and was decided considering financial soundness and the benefit rates of other credit unions.

The long-term savings retirement benefit rate is determined by adding a premium rate to the benchmark interest rate according to internal regulations, and the final benefit rate is decided through external committee review and member feedback processes.

The long-term savings benefit, introduced in 1971 for the education community, is the longest-term installment savings product in Korea, featuring advantages such as low tax rates ranging from 0 to 3%, compound interest, and stability guaranteed under the Korea Teachers' Credit Union Act.

Jung Gap-yoon, Chairman of the Korea Teachers' Credit Union, stated, “As of the end of 2023, we recorded excellent management performance with total assets of 64 trillion won and net profit of 900 billion won. To return these achievements as benefits to more members, we decided to raise the long-term savings retirement benefit rate,” adding, “We hope this increase in the benefit rate will help the education community live a more comfortable and stable life.”

From 6 p.m. on June 21, it will be possible to check the estimated amount of long-term savings retirement benefits reflecting the increased benefit rate through the website, mobile app, or call center.