The arrears rate at the Korean Federation of Community Credit Cooperatives (KFCC) was tentatively tallied to have fallen from 8.37% at the end of June last year to the low 5% range at the end of Dec. last year.
The Korean Federation of Community Credit Cooperatives (KFCC) said on the 18th that it would restore soundness and profitability through active arrears and profit-and-loss management, and stated accordingly. As this was before disclosure, the federation did not release other specific figures besides the arrears rate.
The Korean Federation of Community Credit Cooperatives (KFCC) will manage nonperforming loans centered on MG AMCO and expand the scale of nonperforming loan sales by using the Korea Asset Management Corporation (KAMCO). In particular, it will apply a measure to keep the share of project financing (PF; Project Financing) loans within 20% of total lending, and raise the provision accumulation ratio for real estate and construction loans to 130%.
The Korean Federation of Community Credit Cooperatives (KFCC) aims to return to profit within the next two years. By 2030, it plans to raise the share of inclusive finance to 80% of total credit and support 1.8 trillion won for financially vulnerable groups through measures such as grants to guarantee funds.