2025 New Year's Address
"The Attitude of Pine Trees in Snow... Crisis Management and Business Efficiency"
"A Crucial Turning Point This Year... Strengthening Future Response Capabilities"
Lee Eun-jae, Chairman of the Korea Federation of Construction Guarantee Cooperatives (K-FINCO), stated, "We will not only ensure the stable management of members' equity contributions but also increase the resources for profit returns."
Lee Eun-jae, Chairman of the Korea Specialty Construction Mutual Aid Association. Provided by the Korea Specialty Construction Mutual Aid Association
In his New Year's address on the 2nd, Chairman Lee said, "We are taking the warning signs of the construction market downturn seriously and plan to focus even more on crisis management and operational efficiency in 2025 with the steadfast spirit of 설중송백 (Seoljungsongbaek, meaning 'pine and cypress in the snow')."
He diagnosed, "Due to the opening of the construction guarantee market and intensified competition, this year is expected to be a crucial turning point. It is a time when strengthening external competitiveness, establishing a sustainable management system, and enhancing future response capabilities are essential."
He added, "We will continue to strengthen efforts to activate cooperative usage to attract hidden customers and also advance the asset management sector, which has recorded excellent long-term returns."
He also expressed his determination to establish an intensive pre-management system to prevent guarantee accidents and to build a systematic bond management system to avoid excessive costs. Furthermore, he said that the budget reserve rate will be increased and execution standards will be strictly supervised to reduce company-wide expenses.
Chairman Lee conveyed, "Since K-FINCO operates with the valuable equity contributions of its members, we will do our best to return more benefits to the members through cost-saving efforts that squeeze even a dry towel."
The following is the full text of the New Year's address.
Dear construction professionals,
The year 2025, the Year of Eulsa (乙巳年), has dawned. No matter how harsh the winter cold is, just as the rising sun on New Year's morning brings warmth to those welcoming the dawn, the passion of construction professionals opening Korea’s morning breathes vitality into the Korean economy and industry despite the challenging internal and external environment.
Despite the hard struggles of construction professionals, the economic outlook for 2025 from major institutions is not very optimistic. Economic growth forecasts by institutions have been repeatedly revised downward, and even construction investment, which drives the national economy, is showing a declining trend, leaving the construction companies’ perceived business climate frozen solid in a regrettable situation.
K-FINCO, the Korea Federation of Construction Guarantee Cooperatives, is taking the warning signs of the construction market downturn seriously and plans to focus even more on crisis management and operational efficiency in 2025 with the steadfast spirit of 설중송백 (Seoljungsongbaek). When the world is covered in white snow, the green of pine and cypress stands out more, and the more severe the cold, the more reassuring their upright appearance. Amid the storm of crisis blowing through the construction industry, K-FINCO will do its utmost to expand financial support and innovate services so that members can always find a comfortable refuge to rely on.
Due to the opening of the construction guarantee market and intensified competition, K-FINCO expects 2025 to be a critical turning point. It is a time when strengthening external competitiveness, establishing a sustainable management system, and enhancing future response capabilities are essential.
K-FINCO’s main revenue sources?guarantee, mutual aid, and loans?aim to diversify product lines to meet members’ future demands. Efforts to activate cooperative usage and attract hidden customers will continue to be strengthened. The asset management sector, which has recorded excellent long-term returns, will also be advanced to ensure the stable management of members’ equity contributions and to increase the resources for profit returns.
Since K-FINCO operates with the valuable equity contributions of its members, we will do our best to return more benefits to members through cost-saving efforts that squeeze even a dry towel.
To prevent unpredictable guarantee accidents as much as possible, we will establish an intensive pre-management system and focus on building a systematic bond management system to ensure prompt but not excessive payments. Furthermore, we will strengthen management to prevent moral hazard by continuing recovery efforts after guarantee payments and to ensure that losses from some accidents do not transfer to all members.
To reduce company-wide costs, we will increase the budget reserve rate, strictly supervise execution standards, and incorporate budget reduction performance indicators into internal evaluations to encourage continuous voluntary cost-saving efforts.
Construction professionals, in difficult and challenging times, the industry must unite to overcome the crisis. We pledge to become a strong Korea Federation of Construction Guarantee Cooperatives that is not shaken by crisis and anxiety, deeply embracing the founding spirit of mutual aid and industrial development. Like the bright sun that lights up the darkness, I wish bright and hopeful energy to be with all construction professionals throughout this year. Happy New Year.
Lee Eun-jae, Chairman of the Korea Federation of Construction Guarantee Cooperatives
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