“Shinhyeop Junganghoe, Admired by All”
Visiting to Learn Advanced Technologies like Computer Systems
Ahead of Central Chairman’s Term Ending Next Year
“Role Must Grow Like Advanced Country Shinhyeop”
Kim Yoon-sik, Chairman of the National Credit Union Federation of Korea (NACUFOK), has successfully secured a fourth consecutive term as president of the Asian Confederation of Credit Unions (ACCU). This marks the first time in ACCU history that a president has been re-elected four times. As a role model for Asian credit unions, he expressed his ambition to strengthen the federation’s strengths and enhance the role of credit unions in the domestic financial market by emulating pioneers such as Germany and the United States.
According to NACUFOK on the 9th, Kim was elected as ACCU president at the ACCU annual general meeting held the previous day. He secured first place in the board of directors’ vote, which included directors from 16 full member countries. This year, competition was fierce as some countries, including Thailand, actively put forward candidates. The voting results showed that Kim received the most votes and was elected president.
He stated, “This reappointment as president reflects the remarkable growth of Korean credit unions and the foundation, which has once again attracted the attention of Asian credit union leaders. As the host country of the ACCU presidency, Korean credit unions will proactively lead win-win projects aimed at mutual growth and development among member countries.”
Meeting with our publication a day before the general meeting, Kim positively evaluated the increased participation of more countries as ACCU president. One of Japan’s credit unions, Shinyo Kumiai, actively participated in this year’s ACCU forum. At the opening ceremony, they placed booklets introducing themselves on every seat. Shinyo Kumiai was the only credit union to provide such booklets. Additionally, at NACUFOK’s IT-related keynote lecture held the same day, a senior executive from Shinyo Kumiai attentively listened and asked questions, showing a different attitude from before. Kim said, “From the beginning of my presidency, I encouraged active participation from Japanese credit unions. Not only did I promote participation from existing member countries, but I also made efforts to establish credit unions in countries where none existed.”
1. Kim Yoon-sik, Chairman of the National Credit Union Federation of Korea, is answering questions in an interview with our newspaper on the 7th in Bali, Indonesia. [Photo by National Credit Union Federation of Korea]
Regarding NACUFOK, he emphasized that it has become a “credit union envied by all.” In particular, the federation’s capabilities in IT (information technology) have been attracting attention. He said, “If you visit the NACUFOK headquarters, you will find a computer system staffed by over 120 employees across three floors. Countries from Asia and around the world come to Korea to learn from this system.” He also cited the “Asian Credit Union Leaders Training Program,” which gathers executives from newly established Asian credit unions to observe and learn about the Korean credit union system, as another achievement.
He was not content with the status quo and was aiming higher. He stated that NACUFOK must evolve beyond being a role model for Asia to become an advanced country-style credit union. His vision for credit unions is to expand personal and retail finance sectors and give back to local communities and members. In major advanced countries such as the United States and Canada, credit unions handle personal and retail finance comprehensively, while commercial banks specialize in corporate finance, clearly dividing roles.
Kim said that if cooperatives such as credit unions, Saemaeul Geumgo, Nonghyup, and Suhyup can actively enter personal or retail finance, social benefits such as community returns can be maximized. He added, “The four major commercial banks have an oligopoly not only in corporate finance but also in personal finance, making it difficult for credit unions, which perform similar deposit and loan operations, to compete. If this competitive structure continues, there is concern about ‘national wealth outflow,’ where profits of commercial banks?over 70% of whose shares are owned by foreigners?go abroad rather than staying in the country.”
Kim also called for the establishment of a government department to oversee various cooperatives, including financial cooperatives. If it is difficult to apply the same regulations and operations as commercial banks, a ‘Cooperative Agency’ is needed for systematic management and supervision, allowing cooperatives to specialize in community-based finance. He said, “Cooperatives have their own advantages, such as lending based on the value of members rather than operating profits. If management and supervision are conducted to preserve the founding purpose of cooperatives for community-based finance, they will be able to perform these roles even better.”
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