Ministry of Interior and Safety and Financial Authorities to Continue Intensive Management of Saemaeul Geumgo Soundness Until Year-End

21 Branches Merged in First Half of the Year, Restructuring Accelerates

Restructuring Moves Faster with Efforts to Investigate Causes of Insolvency and Provide Consulting

Strict Sanctions Planned for Cases of Intentional Wrongdoing or Gross Negligence

The Ministry of the Interior and Safety and financial authorities announced on July 24 that they would extend the operation of the “Task Force for Special Management of Saemaeul Geumgo Soundness” until the end of this year. Launched in December of last year, the task force has been conducting regular video conferences each week to continuously monitor Saemaeul Geumgo’s management indicators and to discuss all aspects related to financial soundness management and supervision.

Image of Saemaul Geumgo Central Association building

As a result, Saemaeul Geumgo’s management indicators are showing improvement compared to the same period last year, and restructuring is gaining momentum, as demonstrated by the merger of 21 branches in the first half of this year alone.

Since the end of March, Saemaeul Geumgo has also begun submitting data as needed through the Financial Supervisory Service’s CPC Support System, in the same manner as other mutual financial institutions. Starting next month, the financial authorities are undertaking computerization processes to launch a real-time deposit monitoring system, enabling them to track deposit trends as they happen.

The Ministry of the Interior and Safety, Korea Deposit Insurance Corporation, and Saemaeul Geumgo Central Association are also working together to accelerate restructuring efforts for underperforming branches. In particular, the Korea Deposit Insurance Corporation is supporting investigations into the causes of insolvency and providing management consulting to help ensure the successful operation of branches even after mergers.

The joint government inspection was carried out as planned, auditing 35 branches in the first half of the year. The authorities intend to impose strict sanctions if intentional or gross negligence by executives or employees is confirmed among the detected violations.

The task force assessed that, due to increased volatility in the financial markets—such as fluctuations in interest rates and exchange rates—and the challenging business environment expected to persist in the second half of the year, a consistent emphasis on strengthening soundness is necessary.

The Ministry of the Interior and Safety stated, “In the second half of the year, we plan to continue intensive management of soundness through ongoing cooperation among relevant agencies, while also discussing various measures to maintain the long-term soundness and sustainable development of Saemaeul Geumgo.”

This content was produced with the assistance of AI translation services.