Saemaeul Geumgo Enjoys 2.4 Trillion Won in Tax Exemptions... Loans to Non-Members Reach 70%

Assemblyman Heo:
"The Result of Excessive Corporate and Out-of-Region Lending"

Saemaeul Geumgo has been enjoying special tax benefits as a mutual financial cooperative, while in reality, it has significantly increased the proportion of loans extended to non-members.

According to data submitted by Assemblyman Heo Young of the Democratic Party of Korea to the Ministry of the Interior and Safety on September 16, the total amount of tax exemptions and reductions that Saemaeul Geumgo received over the past 10 years under the Restriction of Special Taxation Act reached 2.3951 trillion won. Specifically, 1.5014 trillion won was exempted from interest income tax on cooperative deposits, 589.1 billion won was exempted from corporate tax for cooperative corporations, and 304.9 billion won was exempted from dividend income tax on cooperative investment funds.

On the other hand, the loan structure of Saemaeul Geumgo has shifted to focus more on non-members (general customers who are not members) rather than members. As of the end of 2024, the outstanding loans to non-members amounted to 131.5944 trillion won, accounting for 71.6% of the total. This is an increase of more than 40 trillion won in four years, compared to 90.8796 trillion won (63.4%) at the end of 2020. During the same period, loans to members showed little change, according to Assemblyman Heo.

Assemblyman Heo also pointed out that, unlike other mutual financial cooperatives, only Saemaeul Geumgo is not included in the Financial Supervisory Service's 'Financial Statistics Information System.' When comparing the figures disclosed in the Financial Statistics Information System, the proportion of loans to non-members at Saemaeul Geumgo far exceeds the industry average. As of the end of last year, the figures were 41.4% for Nonghyup, 5.3% for Suhyup, and 9.0% for the National Forestry Cooperative Federation. Even credit unions, which, like Saemaeul Geumgo, do not have the concept of 'quasi-members,' had a rate of only 49.5%.

Assemblyman Heo stated, "The problem is that Saemaeul Geumgo has excessively increased corporate loans and out-of-region loans, contrary to its founding purpose." In fact, the proportion of corporate loans out of Saemaeul Geumgo's total loans soared from 6% in 2014 to 58% in 2024, and out-of-region loans extended to customers outside its business area reached 37 trillion won over five years.

Assemblyman Heo added, "In order for Saemaeul Geumgo to fulfill its original role of providing financial services for members and local communities, it is necessary to seek a rational supervisory system that ensures fairness and transparency."