Korea Teachers’ Credit Union Achieves Net Profit of 1.9086 Trillion Won as of End of September

Reserve Accumulation Ratio at 116%
Demonstrating Financial Soundness

The Korea Teachers’ Credit Union announced on November 4 that it achieved a solid performance, recording a net profit of 1.9086 trillion won as of the end of September.

Profit before reserve appropriation reached 4.1906 trillion won, and the reserve accumulation ratio stood at 116%, demonstrating robust profitability and stable financial soundness.

Total assets amounted to 82.2438 trillion won, an increase of 10.3% (7.6529 trillion won) compared to the end of last year. In terms of asset composition (amount), investment assets accounted for 81.2% (66.7246 trillion won), member loans 12.9% (10.5685 trillion won), and other assets 5.9% (4.9507 trillion won).

As of the end of last month, the proportion of each investment asset class was as follows: stocks 19.5% (13.4320 trillion won), bonds 17.1% (11.7623 trillion won), corporate investments 25.0% (17.1631 trillion won), real estate 22.1% (15.1972 trillion won), and infrastructure 16.3% (11.1892 trillion won).

The fund management return rate was in the mid-9% range as of the end of last month, exceeding the annual target of 4.6%. The union explained, “Despite a highly volatile macroeconomic environment, we achieved an excellent fund management return rate by identifying selective investment opportunities and ensuring stable capital management.”

To enhance members’ welfare, the union strengthens asset soundness and mitigates profit and loss volatility by establishing annual asset allocation plans by asset class, region, and management entity, and implementing diversified investments. Through this portfolio management, the union achieved a 2.4% return even when major pension funds recorded negative results due to factors such as a 24.9% decline in the KOSPI index in 2022.

A union official stated, “We will continue to closely monitor market conditions and do our utmost to ensure efficient asset management for stable returns and the enhancement of member welfare.”