<기사제목>Specialized Construction Mutual Aid Association Expects Record High Net Profit This Year

Best First Half Performance in Construction Finance and Asset Management
"Returns to Union Members, Success in Supporting Overseas Expansion"

The Korea Federation of Specialized Construction Contractors (K-FINCO) has predicted that it will achieve the highest net profit in its history this year.

Eunjae Lee, Chairman of the Korea Federation of Specialized Construction Contractors (K-FINCO). / Photo by Korea Federation of Specialized Construction Contractors

On the 26th, K-FINCO announced that both its core businesses?construction finance and asset management, which determine its management performance?recorded the highest results in the first half of this year. If this trend continues into the second half, K-FINCO expects the annual net profit to surpass the record high of 145.2 billion KRW set in 2019.

The guarantee amount in the construction guarantee sector, which constitutes a major part of construction finance, reached approximately 12.2 trillion KRW in the first half, about 1 trillion KRW more than the same period last year. K-FINCO’s guarantee amount last year was 24 trillion KRW, already a record high.

The construction mutual guarantee sector also showed growth, posting a premium income of 35.4 billion KRW in the first half. The asset management sector, which had seen a decline in performance due to the sharp interest rate hikes since 2022, has returned to a normal trajectory. The asset management sector recorded results of 169.4 billion KRW in 2021, 91.4 billion KRW in 2022, and approximately 134.7 billion KRW in 2023.

Lee Eun-jae, Chairman of K-FINCO, presented "establishing solid financial soundness" as one of the management goals when he took office in November 2022.

K-FINCO is also actively implementing the "mutual growth management with members" goal set by Chairman Lee. To support the construction industry facing financial difficulties due to the downturn in the construction market, K-FINCO distributed 160 billion KRW in cash dividends to members over two years, last year and this year, which is more than 80% of its net profit, and provided a special construction stabilization loan of 300 billion KRW at an interest rate in the low 3% range, lower than market rates.

Additionally, to reduce the financial burden on members, K-FINCO lowered the construction machinery guarantee fee rate by 20% and expanded the member guarantee usage limit by 950 billion KRW. It is also helping the construction industry break away from the stagnant domestic construction market by entering the African construction market. Since last year, K-FINCO has selected Rwanda as a strategic foothold for African expansion and has been making multifaceted efforts, including signing a memorandum of understanding (MOU) with the Rwandan government and others to expand the entry of domestic construction companies.

Chairman Lee said, "The more difficult the construction industry becomes, the more K-FINCO will generate greater profits under solid financial soundness, return those profits to members, and actively support the overseas market entry of the domestic construction industry, overcoming the crisis together with our members."