The Korea Specialty Contractors Mutual Aid Association to Continue Aggressive Management Next Year..."Targeting Net Profit of 112.3 Billion KRW"

Approval of the 2025 Fiscal Year Budget
Election of 17 Small Shareholder Delegates

The Korea Federation of Specialized Construction Contractors Mutual Aid Association (K-FINCO) continues its proactive management policy aimed at increasing profits through thorough risk management and strengthening sales activities.

Lee Eun-jae, Chairman of the Korea Specialty Contractors Mutual Aid Association, is delivering the opening address at the 79th Extraordinary General Meeting held on the 31st of last month in the main conference room of the Seoul Specialty Contractors Hall. / Photo by Korea Specialty Contractors Mutual Aid Association

On the afternoon of the 31st of last month, K-FINCO held the 79th extraordinary general meeting at the main conference room of the Seoul Specialized Construction Hall and approved the '2025 Fiscal Year Budget Plan.' The budget plan was prepared with the goal of achieving revenue of 468.2 billion KRW, expenses of 307.7 billion KRW, and net income of 112.3 billion KRW.

The revenue budget was set at 468.2 billion KRW, an increase of 20.2 billion KRW compared to the previous year. Despite forecasts of continued downward pressure on the construction market due to decreased investment and orders, the target was raised. K-FINCO plans to strengthen sales activities through attracting new members and increasing member utilization rates, and to improve profit performance through stable asset management.

The expense budget was set at 307.7 billion KRW, 27.7 billion KRW higher than the previous year. Although costs to prepare for risks such as bad debt provisions and mutual aid liability reserves increased due to the downturn in the construction market, K-FINCO aims to achieve management efficiency by minimizing increases in general administrative expenses.

K-FINCO explained that the budget plan focuses on strengthening core business competitiveness, including customer-centric business process innovation such as building next-generation information technology (IT) systems, developing guarantee and mutual aid products, and enhancing sales and promotional activities. It was also noted that the budget plan was thoroughly reviewed through four budget review subcommittee meetings prior to the general meeting.

On the same day, K-FINCO also elected 17 small-shareholder delegates who are members of the general meeting. To enhance procedural transparency, since 2021, the articles of incorporation specify that small-shareholder delegates are elected at the general meeting based on recommendations from the steering committee considering the number of shares per branch. The term of office is until September 28, 2026.

In his opening remarks at the general meeting, K-FINCO Chairman Lee Eun-jae said, "With the construction market downturn expected to continue until next year, the management environment surrounding the association is likely to remain challenging, but we will overcome this through proactive sales activities and asset management." He added, "Under solid financial soundness, we will do our best to generate more profits so that benefits can be maximally returned to our members."