Shinhyup Achieves 200 Billion KRW Funding Supply to Social Economy Organizations Nationwide

1,975 Financial Supports Provided to 1,099 Social Economy Enterprises Nationwide
Focused Support for Manufacturing, Wholesale and Retail, Educational Services, and Electricity Supply (Solar Power Generation) Sectors

▲Exterior view of the National Credit Union Federation of Korea. Provided by the National Credit Union Federation of Korea.

The National Credit Union Federation of Korea (NACUFOK) announced on the 24th that, as of February 2025, it has achieved a cumulative financial supply of 200 billion KRW by operating low-interest loan products for social economy organizations nationwide to revitalize the social economy.

Social economy enterprises consist of (social) cooperatives, (preliminary) social enterprises, (preliminary) village enterprises, self-support enterprises, and consumer cooperatives. Due to their small scale and low profitability, they face difficulties in securing funds from institutional financial institutions. In response, NACUFOK has increased financial accessibility and lowered support thresholds by applying social value assessments and relaxed screening criteria beyond simple financial reviews.

NACUFOK began full-scale social finance support in July 2016 by introducing the "Credit Union Win-Win Cooperation Loan." Utilizing the "Credit Union Social Economy Support Fund," jointly established by NACUFOK and regional credit unions, it has provided low-interest loans at an annual rate of 2-5% (variable interest rate) through interest subsidy support, thereby alleviating the financial burden on social economy organizations.

Furthermore, to expand the social finance base, NACUFOK has continuously strengthened cooperation with local governments by signing social economy fund business agreements with Gyeonggi Provincial Government in 2019, Chungnam Provincial Government in 2020, and Gyeongnam Provincial Government in 2021. As a result, as of the end of January 2025, approximately 42.3 billion KRW (367 corporations) in Gyeonggi Province, about 8.3 billion KRW (120 corporations) in Chungnam Province, and about 1.6 billion KRW (29 corporations) in Gyeongnam Province have been supported financially.

By December 2024, NACUFOK provided a total of 1,975 financial supports to 1,099 social economy enterprises nationwide, focusing especially on the manufacturing, wholesale and retail, educational services, and electricity supply (solar power generation) sectors, contributing to the growth and sustainability of regional cooperatives and social enterprises.

Kim Yunsik, Chairman of NACUFOK, stated, "As Korea's representative financial cooperative, NACUFOK will continue to provide financial support so that social economy organizations can grow sustainably based on the values of cooperation and mutual prosperity. We will also expand customized financial support for cooperative organizations and take the lead in practicing inclusive finance that grows together with local communities."