Financial Supervisory Service to Conduct First Joint Inspection of Saemaeul Geumgo on the 8th of Next Month... Focused Monitoring on Soundness

As the delinquency rate of Saemaeul Geumgo has sharply increased this year, financial authorities have decided to conduct the first inspection of individual Geumgos starting from the 8th of next month.

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According to the financial sector and financial authorities on the 31st, the Financial Supervisory Service (FSS), together with the Korea Deposit Insurance Corporation and the Saemaeul Geumgo Central Association, plans to conduct on-site inspections of Saemaeul Geumgo for about two weeks starting from the 8th of next month.

The inspection targets four individual Geumgos with relatively large asset sizes, and this will be the first time that financial authorities conduct inspections on Saemaeul Geumgo, which is managed and supervised by the Ministry of the Interior and Safety.

Following the Saemaeul Geumgo bank run crisis in July last year, the financial authorities and the Ministry of the Interior and Safety accepted the opinion that the role of financial authorities should be expanded in the supervision process of Geumgos, leading to this first inspection. Previously, the Financial Services Commission and the Ministry of the Interior and Safety signed a "Business Agreement to Strengthen the Cooperation System for Saemaeul Geumgo Soundness Supervision" last month, and the FSS, KDIC, and Saemaeul Geumgo Central Association formed an inspection consultative body.

In particular, financial authorities are expected to focus on the soundness aspects such as managing the delinquency rate of Saemaeul Geumgo. As of the end of last year, the overall delinquency rate of Saemaeul Geumgo was 5.07%, but it rose to the 6% range as of January this year and reportedly increased further to the 7% range last month.

Since the 29th, the FSS has also been fully operating a real-time deposit monitoring system targeting the mutual finance sector excluding Saemaeul Geumgo. After establishing a system to monitor deposit trends of individual banks and savings banks, the scope has now been expanded to include the mutual finance sector.

The monitoring system is designed to send real-time alert notifications to the person in charge when unusual trends occur, such as deposit changes exceeding pre-set thresholds.

Meanwhile, according to the FSS, the delinquency rate of the mutual finance sector excluding Saemaeul Geumgo was 2.97% at the end of last year, up 1.45 percentage points (p) from 1.52% in the same period the previous year. The household loan delinquency rate rose by 0.62 p to 1.53%, and the corporate loan delinquency rate increased by 2.08 p to 4.31%.

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