[2024 National Audit] Dongjin Noh, President of Suhyup Central Association, "Postpone Financial Holding Company Establishment Considering Soundness"

Response at the National Assembly Audit

Nodongjin, President of the National Federation of Fisheries Cooperatives

On the 14th, Labor Jin, Chairman of the National Federation of Fisheries Cooperatives (Suhyup), announced that the establishment of a financial holding company has been postponed considering soundness.

At the National Assembly Agriculture, Forestry, Livestock, Food, and Maritime Affairs Committee's audit on the same day, Chairman Noh responded to a question from Lee Man-hee, a member of the People Power Party, regarding the establishment of a financial holding company by saying, "(The establishment of a financial holding company) is necessary and preparations began last year, but it has been postponed considering various economic situations," adding, "The review is ongoing."

Kim Ki-sung, CEO of Suhyup Central, also stated, "We are reviewing the financial holding of banking operations and business diversification, and we acknowledge the necessity, but it is postponed due to the capital conditions of the bank and the central association."

Suhyup's debt ratio rose to 787% as of August, and the average delinquency rate of regional fisheries cooperatives surged to 6.8% as of last month.

Suhyup Central announced in November 2022 a plan to establish a financial holding company and incorporate non-bank financial companies such as securities and capital companies as subsidiaries of the financial holding company to complete business diversification.

Kim Hyun-tae, Director of Fisheries Policy at the Ministry of Oceans and Fisheries, said regarding the establishment of Suhyup's financial holding company, "I think it is necessary, but it is appropriate to do so after improving fiscal soundness to some extent."

Kang Shin-sook, President of Suhyup Bank, said, "Suhyup Bank tried to pursue mergers and acquisitions (M&A) last year, but postponed it because soundness was considered more important," adding, "We are continuously exploring acquisition targets."