Financial authorities will newly assign staff dedicated to overseeing and supervising the Korean Federation of Community Credit Cooperatives (KFCC) and, together with the government, focus on managing soundness risks.
According to financial authorities on the 11th, the Financial Services Commission increased the number of personnel at the Financial Supervisory Service to 10 to dedicate staff to overseeing and supervising the Korean Federation of Community Credit Cooperatives (KFCC). On the 9th, in personnel moves at the Financial Supervisory Service at the level of Head of Team and below, the number of staff in the KFCC management division increased on a net basis, and the agency plans to sequentially fill the team to 10 through the placement of new hires or returning employees.
An Financial Supervisory Service (FSS) official said, "Until now, the number of inspectors for the Korean Federation of Community Credit Cooperatives (KFCC) was so small and they were concurrently handling other tasks that there were limits to grasping the status of the many individual cooperatives nationwide," adding, "Now that dedicated staff are in place, we will conduct a precise diagnosis of first-half soundness indicators."
The Financial Services Commission (FSC) and the Financial Supervisory Service (FSS), together with the Ministry of the Interior and Safety, the competent ministry, designated a "special management period" for the Korean Federation of Community Credit Cooperatives (KFCC) through June and will focus on managing the arrears rate through continuous monitoring and joint audits. They will expand the number of individual cooperatives subject to supervision and push for the disposal of delinquent claims and the restructuring of insolvent cooperatives. In addition, the financial authorities and the Ministry of the Interior and Safety will hold meetings from time to time during this period to broaden the scope of information sharing between the two sides.