Saemaeul Geumgo Recovers Delinquency Rate to 6% in Q3... Full-Scale NPL Disposal Begins with MG Asset Management Company Launch

Non-Performing Loan Sales Proceed Smoothly in Q4
Aiming for 5% Delinquency Rate by Year-End to Stabilize Soundness

Saemaeul Geumgo (President Kim In) demonstrated tangible results in soundness management by lowering its delinquency rate to the 6% range as of the end of the third quarter of 2025. This marks a significant improvement compared to the first half of the year, when the delinquency rate exceeded 8%.

National Credit Union Federation of Korea

The mutual financial sector overall has seen a rise in delinquency rates due to the downturn in the real estate market and the sluggish construction industry. Saemaeul Geumgo also experienced an upward trend, with a delinquency rate of 6.81% at the end of 2024 and 8.37% in the first half of 2025. However, by intensifying the disposal and sale of non-performing loans in the second half of the year, the rate recovered to the 6% range by the end of September.

The key factor was the launch of Saemaeul Geumgo Asset Management Company (MG AMCO) in July this year, which began full-scale operations from the third quarter.

MG AMCO has been continuously handling the sale and disposal of non-performing loans, utilizing external channels such as KAMCO, asset securitization, and NPL funds to improve the efficiency of distressed asset management. Through these efforts, Saemaeul Geumgo institutionalized its non-performing asset management system and strengthened the foundation for credit soundness management.

Currently, Saemaeul Geumgo is proceeding as planned with the sale of non-performing loans in the fourth quarter as well.

The National Credit Union Federation of Korea is aiming to stabilize the delinquency rate to the 5% range by the end of the year and is continuously strengthening its risk management system and joint inspections with local credit unions.

Kim In, President of the National Credit Union Federation of Korea, stated, "Saemaeul Geumgo is working closely with the Ministry of the Interior and Safety to fundamentally improve its organizational structure and faithfully fulfill its role as a financial institution for ordinary citizens," adding, "We will achieve prompt management normalization through the sale of non-performing loans and enhancement of asset soundness."

This improvement in the delinquency rate is the result of Saemaeul Geumgo's institutional strengthening of its non-performing loan management capabilities, with the goal of maintaining a stable level of soundness through the end of 2025.

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