Saemaeul Geumgo Completes Sale of 4.5 Trillion KRW in Non-Performing Loans by Q3
Accelerating Soundness Management
Plan to Resolve a Total of 6 Trillion Won in Non-Performing Loans This Year
The National Credit Union Federation of Korea (Saemaeul Geumgo Central Association) announced on the 10th that it has sold a cumulative total of 4.5 trillion KRW worth of non-performing loans (NPLs) up to the third quarter of this year.
This means the sale of NPLs is progressing faster than the initially planned cumulative amount of 3.5 trillion KRW by the third quarter.
Saemaeul Geumgo plans to push for the sale of more than 1.5 trillion KRW worth of bonds in the fourth quarter, including real estate PF funds from KAMCO. If successful, including the approximately 4.5 trillion KRW sold by the third quarter, it is expected to reduce a total of 6 trillion KRW worth of bad debts this year.
Along with managing soundness through the sale of NPLs, efforts to secure liquidity for stable funding supply have also continued. As a result, the available funds of Saemaeul Geumgo and the Saemaeul Geumgo Central Association, which were around 51.7 trillion KRW during the previous withdrawal crisis, increased by about 23 trillion KRW to 74.5 trillion KRW as of September this year. The 74.5 trillion KRW exceeds four times the 17.6 trillion KRW of deposits withdrawn in July during last year’s withdrawal crisis, and corresponds to about 30% of the total deposits of 260 trillion KRW held by Saemaeul Geumgo as of September 2024.
Furthermore, the Saemaeul Geumgo Central Association has established a 'Comprehensive Financial Sector Crisis Management Plan (CP·Contingency Plan)' as an institutional measure to prepare for situations requiring urgent management stabilization.
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Kim In, Chairman of the Saemaeul Geumgo Central Association, stated, "Saemaeul Geumgo is making every effort internally and externally to manage soundness and liquidity to restore trust," adding, "We will do our best to ensure that Saemaeul Geumgo fulfills its role as a regional and community financial institution and becomes a trusted financial institution."
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