Assemblyman Lee Won-taek, "Regional Fisheries Cooperatives' Real Estate Loan Delinquency Rate 'Serious'"

Delinquency Rate at 7.38%... 24 Times Higher Than Average of Commercial Banks

The delinquency rate on real estate loans of regional fisheries cooperatives (member cooperatives of the National Federation of Fisheries Cooperatives) stands at 7.38%, which is 24 times higher than the average delinquency rate of 0.31% at commercial banks, predicting a serious blow to the management of regional fisheries cooperatives.

According to the 2024 National Audit data submitted by the National Federation of Fisheries Cooperatives to Rep. Lee Won-taek (Democratic Party, Gunsan·Gimje·Buan), the delinquency rate on real estate loans of regional fisheries cooperatives (member cooperatives) is 24 times higher than that of commercial banks. It has sharply increased by 3.2 times over the past three years.

Representative Lee Won-taek (Democratic Party, Gunsan·Gimje·Buan, Agriculture, Food, Rural Affairs, and Fisheries Committee). [Photo by Representative Lee Won-taek's Office]

In the first half of this year, the amount of real estate loans by regional fisheries cooperatives (91 cooperatives) was KRW 25.4025 trillion, with delinquent loans amounting to KRW 1.8758 trillion, resulting in a delinquency rate of 7.38%. Among them, some fisheries cooperatives have delinquency rates exceeding 20%, which is more than 60 times higher than the delinquency rate of commercial banks, causing shock.

In particular, most of the delinquent amount of KRW 1.8758 trillion consists of high-risk funds or non-performing loans that are difficult to recover, adding to the severity. Non-performing loans generally carry higher risks than normal loans. Failure to manage these can significantly affect the asset soundness of financial institutions.

Rep. Lee said, "The delinquency rate on real estate loans of regional fisheries cooperatives has sharply increased, and a serious blow to their management is expected," adding, "The National Federation of Fisheries Cooperatives should take the lead in devising measures and efforts to reduce non-performing loans."