Korea Military Mutual Aid Association's Net Profit Soars to 343.1 Billion Won in First Half, Up 52.9% Year-on-Year

Capital Surplus Reaches 4.48 Trillion Won, Up 18.9% Year-on-Year

The Korea Military Mutual Aid Association reported that its net profit as of the end of the first half of this year reached 343.1 billion won, rising more than 1.5 times compared to the same period last year. Its capital surplus—the funds remaining after returning principal and interest to members—increased by over 700 billion won, demonstrating a stable growth trajectory.

On August 27, the Korea Military Mutual Aid Association announced that its total assets as of the end of the first half of this year amounted to 24.9433 trillion won, up approximately 2.0% (479.8 billion won) compared to the end of last year. The number of members was recorded at 246,645, an increase of 2.7% (6,528 members) over the same period.

Management performance grew at an even faster pace than its external scale. As of the end of the first half of this year, business profit stood at 663.8 billion won, a 22.6% increase compared to the same period last year. Net profit also jumped by 52.9% to 343.1 billion won during the same period.

Capital surplus—the funds left over after returning principal and interest to members—reached 4.4781 trillion won, up 18.9% (713.1 billion won) from the end of last year. The reserve accumulation ratio also rose to 131%, up 5.5 percentage points from 125.5% at the end of 2025, reflecting stable financial soundness. An official from the Korea Military Mutual Aid Association explained, "All savings programs, including retirement benefits, lump-sum trust savings, and annuity-type installment payments, showed steady growth," adding, "This was positively impacted by the expansion of membership eligibility, interest rates higher than those at commercial banks, and improvements to member savings systems."

Driven by this strong management performance, the interest rate for deposit-type lump-sum trust savings was increased by 0.40 percentage points from 4.20% to 4.60% (two-year maturity). The new rate has been applied to subscribers since July 1. This rate is more than 1.5 percentage points higher than the average fixed deposit rate at commercial banks.

In just the first half of this year, the Korea Military Mutual Aid Association spent 320.7 billion won on member welfare, a 1.2% increase compared to the same period last year. Of this, 99.1% (317.7 billion won) was paid out as interest on member savings. Additional expenditures included 540 million won in new member enrollment bonuses, 1.66 billion won in childbirth congratulatory payments, and 750 million won for commemorative gifts. The childbirth congratulatory payment was raised by 50% compared to the previous amount starting last year. In April this year, a new enrollment bonus for the "annuity-type installment payment" program was introduced, providing 100 million won in support.

Welfare benefits through partnerships with external companies have also expanded. The number of such partnerships increased by 8.5% from the end of last year to a total of 164. The association partnered with accommodations in overseas locations such as Saipan and Vietnam, and expanded health examination institutions connected with university hospitals. It is also offering discounts for entrance exam lectures from providers such as Megastudy.

Meanwhile, the total investment assets of the Korea Military Mutual Aid Association this year stood at 15.9022 trillion won, an increase of 814.8 billion won compared to the end of last year. Despite geopolitical uncertainties, the association is actively expanding its overseas investments, which as of the end of the first half of this year accounted for 50.3% of the total. The proportion of overseas investments rose steadily from 43.6% in 2024 and 47.6% in 2025.

An official from the Korea Military Mutual Aid Association stated, "For the equity sector, we flexibly adjust the optimal investment allocation by comprehensively considering domestic and overseas stock market trends, corporate value, and market valuation. We also avoid reckless pursuit buying even in rising markets to manage risks." The official added, "For real estate, we selectively invest in PF projects and high-quality commercial real estate with guaranteed stability, and we adjust our investment strategy and portfolio in response to changing economic conditions and government policies both at home and abroad."

In the second half of this year, the association plans to further strengthen its asset management competitiveness and expand its member welfare programs. Notably, for the member housing program, pre-sales are already underway for 1,162 units of Lake Foret by Punggyeongchae located at Geomdan Hosu Park Station in Incheon since June. For Namyangju Wangsuk 2 and Goyang Changneung projects, construction company selection and groundbreaking, along with pre-sales, are targeted for the first half of next year. In 2028, the association plans to start construction and pre-sales of member apartments in Jinrye (Gimhae) and Eonnam (Yongin). In 2029, similar projects are planned for Unjeong Phase 2 (Paju) and Gyosan (Hanam).

Jae Kwan Jung, Chairman of the Korea Military Mutual Aid Association, said, "We will continue to generate stable profits by thoroughly managing risk and securing future growth drivers, while continuously pursuing innovations in welfare services that our members can truly experience."

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