'Bank Run Crisis' Saemaeul Geumgo, Which Lost 17 Trillion, Turns to 2 Trillion Net Inflow

Corporate Loans Decrease from 112 Trillion in March to 111 Trillion in June

Saemaeul Geumgo, which saw more than 17 trillion won withdrawn during the 'bank run' incident in early July, recorded a net inflow of about 2 trillion won last month.

According to the Bank of Korea and the Saemaeul Geumgo Central Association on the 14th, as of the end of July, the deposit balance of Saemaeul Geumgo was recorded at 241.8559 trillion won. Considering that it was 259.4624 trillion won at the end of June, it decreased by 17.6065 trillion won in one month.

In early July, Saemaeul Geumgo experienced a mass withdrawal of savings deposits due to crisis rumors. The Ministry of the Interior and Safety and other related ministries intervened and proposed emergency measures such as restoring interest upon re-deposit to calm the anxiety.

As a result, about 2 trillion won was net inflowed as of last month compared to July, and this trend continues this month as well.

On the other hand, loans are on a decline. As of the end of July, the loan amount was 195.5592 trillion won, down 9.789 billion won from the end of the previous month (196.5381 trillion won). This figure has been slightly decreasing every month since recording 201.6475 trillion won in December last year.

In particular, the growth of corporate loans (such as real estate collateral and managed land trust loans), which had aggressively increased due to low interest rates and a real estate boom, has slowed. Corporate loans increased from 85.4 trillion won at the end of 2021 to 110.6 trillion won at the end of 2022, and 112.1 trillion won as of the end of March this year, but turned to a decrease at 111.4 trillion won as of the end of June.

Saemaeul Geumgo, which had set a goal of achieving 300 trillion won in assets within the year, is being evaluated as refraining from external growth through corporate loans and focusing on improving profitability. The Ministry of the Interior and Safety, the responsible department, has also decided to prohibit large corporate loans by the geumgos and allow them only when linked with the Saemaeul Geumgo Central Association. The capital contribution standards required for establishing Saemaeul Geumgo will also be significantly raised. The capital contribution standards will be gradually increased from July 2025, and from July 2028, they will be strengthened to 3 to 5 times the current level.

A Saemaeul Geumgo branch in downtown Seoul last July. [Image source=Yonhap News]

This content was produced with the assistance of AI translation services.