Shinhyup Subsidiary KCU NPL Loan Company Increases Capital... "Strengthening Soundness"

"Significantly Expanded Acquisition Capacity with 190 Billion KRW Capital Increase"

The National Credit Union Federation of Korea (NACUFOK) announced on the 15th that it will inject an additional 190 billion KRW into its subsidiary, KCU NPL Loan. This move aims to strengthen the capital base of the loan business subsidiary and significantly expand its capacity to purchase non-performing loans.

With this capital increase, KCU NPL Loan will secure a capital of 200 billion KRW. Under the Loan Business Act, it will be able to borrow up to 1.8 trillion KRW, greatly enhancing its ability to acquire non-performing loans. Based on this, NACUFOK plans to focus on clearing non-performing loans across credit unions nationwide by the end of the year.

Meanwhile, NACUFOK requires approval from the Financial Services Commission under the Credit Union Act to invest in other corporations. This investment was finalized after the agenda was passed at the regular meeting held on the 13th.

A NACUFOK official stated, “By strengthening the capital of KCU NPL Loan, we have secured the capacity needed to purchase non-performing loans of credit unions,” adding, “We will continue to do our best to manage the soundness of credit unions nationwide through ongoing monitoring and countermeasure preparations.”