Ko Youngcheol Elected Chairman of National Credit Union Federation of Korea: "Will Restore Trust and Strengthen Growth Foundation" (Comprehensive)

Inauguration Set for March
Focus on Restoring Soundness and Strengthening Internal Controls
Emphasis on Identifying Future Growth Engines

Ko Youngcheol, Chairman of Gwangju Cultural Credit Union, has been elected as the 34th Chairman of the National Credit Union Federation of Korea. Photo by National Credit Union Federation of Korea

Ko Youngcheol, Chairman of Gwangju Cultural Credit Union, was elected as the new Chairman of the National Credit Union Federation of Korea on January 7.

The National Credit Union Federation of Korea announced that Ko was elected in the 34th chairman election, which was held on the same day at the Central Training Institute of the federation located in Yuseong-gu, Daejeon.

The electoral college consisted of 862 credit union chairmen from across the country and the current chairman of the federation, making a total of 863 eligible voters. The total number of votes cast was 784. Ko secured 301 votes (a 38.4% share), confirming his victory.

Ko graduated from the Department of Accounting at Chosun University and has held key positions at Gwangju Cultural Credit Union, including Executive Director and Chairman. Under his leadership, Gwangju Cultural Credit Union became the second largest credit union in the country by assets and has played a pivotal role in the local economy. Since 2022, Ko has also served as a director of the National Credit Union Federation of Korea.

During his campaign, Ko emphasized restoring soundness, strengthening internal controls, and identifying future growth engines as his top priorities. To help normalize credit unions with weak financial conditions, he proposed relaxing the requirements for management normalization support funds, supporting capital expansion by allowing some of the surplus in repayment reserves to be invested in the unions, and expanding linked loans and performance-based credit products for unions with capital erosion.

He also proposed the creation of a 'matching provision fund' (tentative name) to ease the burden of new loan loss provisions. Ko stated that he would consider converting the non-performing loan (NPL) subsidiary into an asset management company (AMC) to strengthen long-term management functions, and would review a structure in which excess profits generated through post-settlement would be returned to the unions.

He mentioned the need to expand the role of the Depositor Protection Fund beyond post-incident protection, suggesting it should contribute to the soundness and capital expansion of the unions. For strengthening internal controls, he proposed revitalizing the rotating supervision system, managing groups of 10 credit unions, and establishing a constant monitoring system through the introduction of dedicated officers. He also stressed the importance of fostering credit specialists through cooperation between the Central Training Institute and related organizations, as well as introducing a regional headquarters credit review officer system to enhance credit review capabilities.

Ko stated, "The credit union must regain trust by returning to a field- and member-centered approach, and I will do my utmost to strengthen both soundness and the foundation for growth. The federation must be a strong pillar that supports local credit unions so they can fulfill their roles."

Ko will succeed the current chairman, Kim Yoonsik, whose term ends at the end of February this year, and will lead the National Credit Union Federation of Korea starting March 1. The federation plans to proceed with the handover of duties according to procedure and to hold an inauguration ceremony and other official events.