Saemaeul Geumgo Non-Performing Asset Ratio in Jeonbuk Rises 10.9%... Highest Nationwide

Financial Authorities' Recommended Rate Exceeded 8%
Results of Assemblyman Han Byung-do's Ministry of the Interior and Safety Audit Materials

As a result of analyzing Saemaeul Geumgo management indicators by regional credit unions, it was found that the ratio of non-performing assets in Jeonbuk, Busan, and the metropolitan area exceeded the financial authorities' recommended level of 8%.

According to the national audit data submitted by the Ministry of the Interior and Safety to Han Byung-do, a member of the Democratic Party of Korea (Jeonbuk Iksan-si Eul·Public Administration and Security Committee), the fixed non-performing loan ratio in the first half of this year was confirmed as ▲Jeonbuk 10.92% ▲Busan 10.8% ▲Incheon 10.29% ▲Seoul 10.05%. Conversely, relatively low regions were ▲Gangwon 5.43% ▲Jeju 5.44% ▲Chungbuk 6.22% ▲Gyeongbuk 6.94%.

The fixed non-performing loan ratio is the ratio of non-performing assets overdue for more than three months among the total loans of each bank, representing a key indicator of asset soundness.

MG Saemaeul Geumgo branch in a market in Seoul.
[Photo by Younghan Heo younghan@]

The amount of overdue loans after lending is ▲Gyeonggi 109 locations 3.2894 trillion KRW ▲Seoul 235 locations 2.7016 trillion KRW ▲Daegu 102 locations 1.1263 trillion KRW, in that order. The average overdue amount per credit union is ▲Gyeonggi 2.56 billion KRW ▲Seoul 2.10 billion KRW ▲Daegu 870 million KRW.

The average delinquency rate of 1,284 Saemaeul Geumgo nationwide is 7.24%. Regions with higher rates than this are ▲Incheon 9.06% ▲Busan 8.46% ▲Seoul 8.00% ▲Gyeonggi 7.96% ▲Jeonbuk 7.81%, while lower regions are ▲Gangwon 3.74% ▲Jeju 4.20% ▲Chungbuk 5.11%.

The scale of net losses by region revealed that the metropolitan area Saemaeul Geumgo suffered severe deficits. ▲Seoul ?322.8 billion KRW ▲Gyeonggi ?306.4 billion KRW, with the average net loss per credit union being ▲Seoul ?251 million KRW ▲Gyeonggi ?239 million KRW.

The Ministry of the Interior and Safety stated that considering the scale of losses, it plans to manage deposits at an appropriate level and make efforts to reduce losses through management efficiency.

Assemblyman Han Byung-do said, "Unlike other business areas under the supervision of financial authorities, there are continuous criticisms that it is difficult to trust the financial expertise and internal control levels of individual Saemaeul Geumgo credit unions," adding, "We will actively work on improving problems such as the 'black box disclosure' of individual credit unions, not only checking the management innovation plan prepared after last year's mass deposit withdrawal incident."

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