100 Billion KRW Invested in Reconstruction of National Credit Union Federation’s Comprehensive Inspection System

The National Credit Union Federation of Korea has officially begun upgrading its comprehensive inspection system to prevent the recurrence of improper lending by its member credit unions.

According to the National Credit Union Federation of Korea on November 27, the organization partnered with LG CNS and launched the project to rebuild the comprehensive inspection system on November 17. Approximately 10 billion won (about 100 billion KRW) will be invested, with the project scheduled for completion by February next year.

The Federation has set the following goals: ▲ enhancing the inspection framework and internal controls based on big data, ▲ establishing a monitoring system at the credit union level for proactive risk management, and ▲ upgrading the system infrastructure to optimally support work execution.

The primary aim of this upgrade is to further strengthen the monitoring system that detects early warning signs of financial incidents at each credit union in advance. The plan is to develop a risk assessment model based on big data and enable each credit union to use it to establish their own risk evaluation systems. In addition, the entire inspection process will be digitized to dramatically increase work productivity.

In 2019, the Federation launched the Credit Union Supervisory Committee, an independent body dedicated to inspecting and supervising credit unions nationwide. While the number of inspectors grew by 86% from 117 in the early days to 217 as of this year, the organization has faced manpower shortages in the process of inspecting 3,223 branches nationwide every two years.

The Federation expects that automating inefficient work through the reconstruction of the comprehensive inspection system will significantly address the manpower shortage and noticeably improve the performance of credit union inspection, supervision, and financial incident prevention.

A representative of the National Credit Union Federation of Korea stated, "We will strive to strengthen internal controls based on advanced IT technology so that we can be reborn as a trusted, community-based mutual financial institution for our members."

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