Korea Teachers' Credit Union Reports Net Profit of 899.6 Billion KRW Last Year... 10 Consecutive Years of Surplus

Net Income Scale Increased by 105.7% Compared to 2022
Investment Return Rate 8.3%, Operating Income 3.7289 Trillion KRW
Domestic and Foreign Stock Return Rate Over 20%, Driving Profitability

The Korea Teachers' Credit Union announced on the 26th that its net profit for the fiscal year 2023 was 899.6 billion KRW. This is an increase of 462.2 billion KRW (105.7%) compared to the previous year. It marks ten consecutive years of surplus since 2014.

As of the end of 2023, assets amounted to 64.1585 trillion KRW, an increase of 12.7% (7.2296 trillion KRW) compared to the previous year. The asset composition (by amount) was ▲ investment assets at 76.6% (49.1498 trillion KRW), the highest proportion, ▲ member loans at 18.2% (11.6921 trillion KRW), and ▲ other assets at 5.2% (3.3166 trillion KRW).

Additionally, the business yield (based on profit and loss before reserve transfers) was 5.8%, and the reserve accumulation rate was 110.8%. Since 2018, the reserve accumulation rate has exceeded 100% for six consecutive years.

Regarding investment income, last year the fund achieved operating income of 3.7289 trillion KRW and an operating yield of 8.3%. By sector, financial investments had the highest yield at 14.8%. Domestic stocks recorded a yield of approximately 21.8%, and overseas stocks achieved about 22.8% yield.

The corporate finance yield was 8.6%. Through high-quality private equity investments such as the sale of shares in SK Shieldus and PI Advanced Materials, a yield of about 10.5% was recorded. Overseas, high-quality senior private loans and secondary funds generated approximately 7.3% yield.

The alternative investment yield was 4.1%. In domestic infrastructure, returns included repayment gains from Macquarie Korea Opportunities Fund No. 3, achieving about 8.6%, and in overseas infrastructure, distributions from ArcLight energy infrastructure investment assets resulted in about 10.8% yield.

Last year, the holding proportions by investment asset class were ▲ stocks 16.0% (7.8817 trillion KRW), ▲ bonds 13.3% (6.5215 trillion KRW), ▲ corporate finance 26.6% (13.0678 trillion KRW), ▲ real estate 28.0% (13.8150 trillion KRW), and ▲ infrastructure 16.1% (7.8638 trillion KRW). The domestic and overseas holding proportions were 42.0% domestic and 58.0% overseas.

The Korea Teachers' Credit Union plans to operate the holding proportions by investment asset class flexibly according to market conditions this year. The target domestic and overseas holding proportions are 41.7% domestic and 58.3% overseas. The fund management target yield for 2024 is 5.0%.

Jung Gap-yoon, Chairman of the Korea Teachers' Credit Union, stated, “Based on an investment portfolio that considers stability and profitability, we are discovering high-quality assets and making selective investments. Given the expanding economic uncertainties, we will flexibly manage assets according to domestic and international environments in 2024 and contribute to improving profitability through risk management.”

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