Shinhyup Reports Net Profit of 370.2 Billion KRW Last Year, Down 12.8% YoY
Return of 153.2 Billion KRW to Members through Capital Contributions and Patronage Dividends
[Asia Economy Reporter Kim Min-young] The National Credit Union Federation of Korea (NACUFOK) achieved a net profit of 370.2 billion KRW last year, continuing its streak of 18 consecutive years of profitability.
On the 19th, the credit union announced that its net profit for the previous year was 370.2 billion KRW, which is about a 12.8% decrease compared to the previous year (424.5 billion KRW).
As a non-profit financial cooperative, NACUFOK stated that it returned 153.2 billion KRW of last year’s net profit to its members, accounting for 41.4% of the net profit. Of this, 144.4 billion KRW was distributed as dividends on members’ shares, and 8.8 billion KRW was distributed as dividends on members’ usage profits.
The average dividend rate across nationwide credit unions was 2.8%. This means that if a member invested 10 million KRW for one year, they would receive approximately 280,000 KRW as dividends. The share capital is the money paid when becoming a member of a mutual financial company like a credit union, functioning as a kind of membership fee. It can be paid from 10,000 KRW up to 10 million KRW, and dividends on share capital are tax-exempt. The share capital is refunded upon withdrawal from the cooperative.
As of the end of March, the total assets of credit unions amounted to approximately 104 trillion KRW, with 883 cooperatives and 6.36 million members.
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Kim Yoon-sik, Chairman of NACUFOK, said, “Credit unions are different from for-profit joint-stock banks in that most of their operating profits are returned to members as dividends or invested in community contribution projects, creating a virtuous cycle within the local area. Member dividends are mainly cash dividends on share capital, but they are also provided in various forms such as operating daycare centers and fitness centers. Although the forms vary by cooperative, these projects benefit members and local residents, thereby playing a positive role in regional development.”
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