The nationwide Saemaul Geumgo recorded a loss of nearly 1.74 trillion won last year, marking the largest loss in its history. Both profitability and stability have worsened, as indicators of asset soundness show increases in arrears and non-performing loan ratios compared to a year ago.
The Ministry of the Interior and Safety announced the 2024 business performance of Saemaul Geumgo on the 20th. The 1,276 Saemaul Geumgos across the country recorded a net loss of 1.7382 trillion won last year. Although there was a net profit of 86 billion won in 2023, the shift to a loss and the largest loss in the history of Saemaul Geumgo occurred simultaneously last year.
The massive loss last year was influenced by the accumulation of provisions for bad debts. Nationwide, the funds accumulated about 1.6 trillion won in provisions for bad debts last year. This provision was recorded as an expense on the financial statements, leading to the large-scale loss.
Indicators of soundness also showed increases in arrears and non-performing loan ratios over the past year. As of the end of last year, the overall loan arrears ratio rose to 6.81%, an increase of 1.74 percentage points compared to the end of 2023 (5.07%). The non-performing loan ratio, which indicates the proportion of bad assets, increased from 5.55% to 9.25%, a rise of 3.70 percentage points during the same period.
Over the past year, the total assets of nationwide Saemaul Geumgo slightly increased, but loan assets decreased. Total assets rose from 287 trillion won at the end of 2023 to 288.6 trillion won at the end of last year, an increase of 1.6 trillion won. During the same period, loan assets declined from 188.1 trillion won to 183.7 trillion won, a decrease of 4.4 trillion won.
A Ministry of the Interior and Safety official said, "Difficult management conditions are expected again this year, but the ministry will actively strive to manage the soundness of Saemaul Geumgo."