Saemaeul Geumgo to Invest 10 Billion Won in Rebuilding 'AI Supervision System'

Preemptive Detection of Risk Signals at Branches Nationwide
Full-Scale Efforts to Block Improper Loans

Saemaeul Geumgo will completely overhaul its inspection and supervision system to fundamentally resolve issues related to improper loans and blind spots in internal controls.

The organization is establishing an "AI-based real-time supervision system" to detect abnormal signs across all 1,262 branches nationwide, aiming to prevent financial accidents before they occur. This move is a declaration to move beyond simple management and inspection, evolving into a data-driven, precision supervision system.

Saemaeul Geumgo Central Association building. Photo by Byunggun Kwon

◆ 10 Billion Won Investment, Completion by 2027... Joint Design with LG CNS and PwC

On November 17, the Saemaeul Geumgo Central Association launched the "Comprehensive Inspection System Reconstruction Project" in partnership with LG CNS. This is a complete overhaul of the system introduced in 2020 after five years, with a total project cost of 10 billion won.

The Central Association finalized the direction of the system overhaul last year through consulting with PwC, setting the following as key objectives: a big data-based inspection system, risk monitoring at the branch level, and the expansion of infrastructure to improve work efficiency.

◆ Detecting All Stages of Financial Accidents... "Spotting Abnormal Signs First"

The core of this upgrade is the "preemptive detection capability" for abnormal signs. The system is designed to automatically detect risk signals by integrating and analyzing branch-specific data, such as loan patterns, transaction flows, and approval status. This strengthens the risk management system, shifting from a traditional post-event inspection approach to a proactive AI and big data-based model.

Through this, branches will be able to enhance their own internal control capabilities, and the Central Association also expects to dramatically improve inspection efficiency.

◆ Supervising 3,223 Branches... "Addressing the Shortage of Inspectors"

Currently, the Saemaeul Geumgo Supervisory Committee is responsible for inspection and supervision work. Although the number of inspectors increased from 117 in 2019 to 217 this year, it has still been difficult to inspect all 3,223 branches nationwide on a biennial basis.

With digital automation reducing repetitive and inefficient work, the focus and accuracy of inspectors are expected to increase, minimizing any gaps in supervision.

The internal control system within each branch will also be greatly strengthened. Once the advanced system is completed, intuitive access to branch-specific potential risk data will significantly heighten awareness at each branch. Branches will be able to independently check high-risk areas such as unauthorized approvals, improper loans, and abnormal transactions, thereby raising the quality of their internal controls.

◆ "Restoring Member Trust Is the Top Priority"... Saemaeul Geumgo's Commitment

A Saemaeul Geumgo representative stated, "We will establish an advanced IT-based internal control system to become a more trusted local mutual financial institution for our members." In the wake of last year's withdrawal incident, this project is seen as an opportunity to transform the organizational culture and supervision system of Saemaeul Geumgo into a more precise and sustainable structure.

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