Financial Supervisory Service Conducts On-Site Inspections of Mutual Finance Cooperatives Ahead of Cooperative Head Elections

[Asia Economy Reporter Bu Aeri] The Financial Supervisory Service (FSS) will conduct on-site inspections of mutual financial cooperatives within this month.

According to the FSS on the 9th, the on-site inspection will check the appropriateness of the allowance for bad debts and compliance with dividend rate regulations.

Nationwide, 1,346 agricultural, fishery, and forestry cooperatives are scheduled to hold simultaneous cooperative head elections on the 8th of next month, and 125 credit unions are also expected to hold chairman elections within this year. With the possibility of dividend expansion by mutual financial cooperatives ahead of the cooperative head elections being raised, inspections regarding this are also expected to take place.

An FSS official stated, "This is an annual settlement inspection conducted similarly across all regions," adding, "Compliance with dividend rate regulations will also be checked together."

Meanwhile, earlier this year, the FSS emphasized the public nature of the financial sector, restraint on excessive dividends, and the need for capital expansion in its business plan. In this regard, FSS Governor Lee Bok-hyun also urged dividend restraint at a press briefing, saying, "The difficult real economy situation should be fully considered, and along with maximizing shareholder profits, the interests of various stakeholders other than shareholders should also be taken into account."

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