Oh Hwa-gyeong, chairman of the Korea Savings Bank Association, noted at the start of the new year, "I will prioritize improving the asset quality of savings banks and devote all efforts to it."
In his New Year's address on the 31st, Chairman Oh emphasized, "I will take measures such as supporting light auctions, joint sales, and establishing non-performing loan (NPL) companies to ensure stable management of real estate project financing (PF) loans and household loans." He added, "During the year 2024, savings banks were faced with numerous challenges amidst many difficulties and experienced a tough year due to the expansion of real estate PF risks and concerns about household debt default resulting from decreased borrower repayment capacity."
He then remarked, "Despite these challenging business conditions, we managed to stabilize the management of capital robustness and liquidity, minimizing concerns in the financial market, and this is thanks to the dedicated efforts of all employees in their respective positions. I extend my deep respect and gratitude."
Chairman Oh emphasized, "It is expected that the difficult business environment, including regional economic stagnation, will continue into 2025." He continued, "To faithfully fulfill our role in supplying household finance as a representative financial institution for the public, I urge everyone to pay more attention to managing asset quality, and the association will also do its utmost to provide support."
He also stated, "Amid the rapidly changing financial environment, we will actively discover new businesses to develop savings banks into sustainable financial institutions for the public and will also make efforts toward appropriate savings bank positioning." He concluded by saying, "Let us create a year that does not yield to any obstacles, just as the saying goes, 'unyielding.'"