The Korean Federation of Community Credit Cooperatives (KFCC) said on the 15th it will hold a forum on the 19th of this month with the Public Administration and Security Committee to discuss the "Vision 2030" plan to improve management and oversight of the KFCC. It will gather input from stakeholders on the draft of Vision 2030 that the Ministry of the Interior and Safety (MOIS) has prepared since the first half of this year.
Vision 2030 includes a plan for the KFCC central body to provide grants and invest in social corporations to expand social finance, along with concrete plans to strengthen cooperative values and soundness. The Ministry of the Interior and Safety (MOIS) plans to hold a related public hearing within the year to collect additional opinions through the end of the year, finalize the contents of Vision 2030 in January next year, and hold a vision proclamation ceremony in February.
The Ministry of the Interior and Safety (MOIS) and the Korean Federation of Community Credit Cooperatives (KFCC) plan to use Vision 2030 to craft and implement reform measures so that individual credit unions do not excessively pursue profitability projects, but instead strengthen their cooperative character and expand community and low-income finance.
With plans to push the social solidarity economy as a key task next year, the Ministry of the Interior and Safety (MOIS) intends to have mutual finance institutions such as the Korean Federation of Community Credit Cooperatives (KFCC) play a major role. The social solidarity economy refers to economic activities that pursue both revenue generation and contributions to social value, including community corporations, social corporations, and cooperatives.
However, as problems with weak oversight of the Korean Federation of Community Credit Cooperatives (KFCC) continue to surface, options to expand the supervisory role and authority of the financial authorities remain under discussion. The Ministry of the Interior and Safety (MOIS) decided to conduct joint audits with the Financial Supervisory Service and the Korea Deposit Insurance Corporation (KDIC) in the first quarter next year—earlier than this year—and to expand the size of the audit workforce.