Shinhyup Non-Performing Loan Subsidiary Launched... Additional 90 Billion KRW Investment

From the left, Jo Yong-rok, CEO of KCU NPL, and Kim Yoon-sik, President of the National Credit Union Federation of Korea

The National Credit Union Federation of Korea (NACUFOK) announced on the 2nd the launch of its specialized subsidiary for non-performing loans (NPL), ‘KCU NPL Daebu.’

At the inauguration ceremony held the previous day, about 200 people attended, including Kim Yunsik, Chairman of NACUFOK, the labor union chairman, executives and employees of the federation and its subsidiary, and representatives of cooperatives.

Since last year, NACUFOK has laid the foundation for establishing an NPL investment specialized subsidiary and completed the incorporation of KCU NPL Daebu in May. KCU NPL Daebu plans to purchase non-performing loans from 866 cooperatives nationwide using capital and funds borrowed from the federation, employing a post-settlement method, aiming to prevent an increase in NACUFOK’s delinquency rate and to manage financial soundness.

Jo Yongrok, the inaugural CEO of KCU NPL, stated, “Going forward, KCU NPL Daebu will make every effort to swiftly resolve and efficiently manage NACUFOK’s non-performing loans by purchasing large volumes of NPLs held by individual cooperatives and managing them intensively.”

NACUFOK plans to additionally invest 90 billion KRW in ‘KCU NPL Daebu’ to expand the scale of NPL purchases, thereby striving to reduce delinquency rates and strengthen financial soundness.

Kim Yunsik, Chairman of NACUFOK, said, “We will actively support ‘KCU NPL Daebu’ to fulfill its role and work together to enhance NACUFOK’s internal and external credibility.”

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