The National Credit Union Federation of Korea announced on the 25th that it has completed the merger of a total of 14 credit unions at risk of insolvency since July of last year.
This is part of the implementation of the "Saemaeul Geumgo Management Innovation Plan" announced in November last year.
Since the withdrawal incident in July last year, the National Credit Union Federation of Korea has established and operated a Credit Union Improvement Headquarters. Accordingly, credit unions subject to merger were selected based on capital adequacy, asset soundness, and other criteria, and mergers with nearby sound credit unions have been promoted.
In addition, to prevent any damage or inconvenience to customers due to the mergers, the credit unions subject to merger continue to operate as branches of the new credit union. Customer deposits and savings exceeding 50 million KRW, including those of the credit unions subject to merger, as well as investment funds, are 100% transferred to the new credit union with both principal and interest fully protected.
The National Credit Union Federation of Korea stated, "Going forward, credit unions that find it difficult to normalize on their own will minimize damage to members and depositors through mergers, and actively promote management rationalization by encouraging voluntary mergers of small credit unions. Although the number of corporations will decrease due to mergers, the total number of branches will be maintained to fulfill the social responsibility of providing financial services to financially underserved areas."
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