Korea Teachers' Credit Union Records 11th Consecutive Year of Surplus with 11% Return Rate

Net Profit of 721.6 Billion KRW
Reserve Ratio Achieves 113.9%

The Korea Teachers' Credit Union has maintained a surplus trend for 11 consecutive years.

The Korea Teachers' Credit Union announced on the 25th that it recorded a net profit of 721.6 billion KRW and a reserve ratio of 113.9%. The reserve ratio has remained above 100% for seven consecutive years since 2018.

As of the end of 2024, assets amounted to 74.5909 trillion KRW, an increase of 16.3% (10.4324 trillion KRW) compared to the previous year. The asset composition (amount) was ▲investment assets at 79.5% (59.222 trillion KRW), the highest, followed by ▲member loans at 15.0% (11.2066 trillion KRW), and ▲other assets at 5.5% (4.1623 trillion KRW).

Last year, the holding proportions by investment asset category were ▲stocks 17.2% (10.17 trillion KRW), ▲bonds 13.6% (8.0786 trillion KRW), ▲corporate investments 27.1% (16.0273 trillion KRW), ▲real estate 25.8% (15.2592 trillion KRW), and ▲infrastructure 16.3% (9.6869 trillion KRW). The domestic and overseas holding proportions were ▲domestic 39.3% and ▲overseas 60.7%, respectively.

The Credit Union explained that despite a challenging environment rife with economic and political uncertainties, it achieved an excellent fund management return rate of 11.1% through selective investment opportunity discovery and stable fund operation.

Additionally, through flexible asset allocation and portfolio management, it recorded favorable returns across all sectors, including 10.8% in financial investments, 14.2% in corporate investments, and 9.3% in alternative investments.

In financial investments, overseas stocks achieved a very high return of 30.9% by proactively increasing exposure to the North American region and IT sector, which showed a strong market. Also, in domestic and overseas bond investments, flexible buying and selling aligned with the interest rate environment resulted in a stable performance of around 5.2%.

In corporate investments, domestically, it achieved a 6.4% return through high-quality private equity stakes and loan investments such as Olive Young and TmaxSoft principal and interest recovery. Overseas, it recorded a high return of 19.9% due to strong management of buyout and secondary PE and stable income generation from private loan funds.

In alternative investments, infrastructure investment, which entered a full-scale expansion phase through the establishment of a new department last year, achieved an excellent performance of 16.1%. Domestic infrastructure yielded a 9.1% return based on stable dividend income, while overseas infrastructure achieved an 18.7% return, supported by excellent asset management performance and capital gains driven by increased global energy demand and digitalization.

In the real estate sector, despite a slowdown in the commercial real estate market due to the impact of COVID-19, it achieved a favorable return of 5.4% through domestic senior loan funds, REITs investments, and overseas multifamily sector loan investments.

The Credit Union establishes annual asset allocation plans by asset type, region, and management entity according to the principle of diversification and performs flexible asset allocation tasks considering market conditions by asset class and region. This year, it aims for fund management assets of 62 trillion KRW, fund management income of 3 trillion KRW, and a fund management return rate of 5.2%.

Jung Gap-yoon, Chairman of the Korea Teachers' Credit Union, stated, “As the proportion of overseas investments has increased, we are striving to expand our global network, including establishing overseas offices,” and added, “We will continue to do our best to ensure sustainable growth by strengthening the stability of fund management.”

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