The discussion revolves around the financial issues faced by Saemaul Geumgo, a financial cooperative in South Korea. The delinquency rate of Saemaul Geumgo has increased, leading to concerns about its insolvency. In response, the South Korean government formed a government-wide response group to prevent deposit withdrawals. However, depositors remain anxious.
Saemaul Geumgo is different from regular banks. It was established in 1963 as a financial institution to help regions after the Korean War. Saemaul Geumgo guarantees deposits up to 50 million won based on the Saemaul Geumgo Act. However, the guarantee systems are different from commercial banks.
The main issue causing the withdrawal of deposits from Saemaul Geumgo is the improper collection of loans. Saemaul Geumgo's loan screening process has not been professional, leading to problems at individual branches. This has resulted in the closure of some branches.
The government announced measures to prevent a bank run, where people who had deposited money in Saemaul Geumgo were suddenly withdrawing their money. The government's measures were aimed at protecting up to 50 million won per depositor.
However, the situation has worsened due to the high delinquency rate. The delinquency rate, which once went up to 6.49%, has come down to 6.18% as of the end of June. This rate is more than twice that of mutual financial institutions such as Nonghyup or Shinhyup.
This crisis has affected the KOSDAQ index, which closed with a 2.32% decline. The government-wide measures were announced by the Ministry of Public Administration and Security, not the Financial Supervisory Service, because Saemaul Geumgo is not an organization under the management and supervision of financial supervisory authorities.
The total assets of Saemaul Geumgo are about 300 trillion won, at the level of the Big 5 commercial banks, and it has 1,294 branches across the country, making it larger than most banks. However, it is time to move to the financial authorities and manage it thoroughly.
1. The delinquency rate of Saemaul Geumgo has increased this year, leading to concerns about its insolvency.
2. In response, the government formed a government-wide response group to prevent deposit withdrawals from Saemaul Geumgo.
3. Saemaul Geumgo is a type of financial cooperative, not a regular bank, that was established in 1963.
4. Saemaul Geumgo guarantees deposits of up to 50 million won based on the Saemaul Geumgo Act.
5. Saemaul Geumgo's loan screening process has not been professional, leading to problems with its overall operation method.
6. The delinquency rate of Saemaul Geumgo has been high, more than twice that of mutual financial institutions such as Nonghyup or Shinhyup.
7. As a result of the high delinquency rate, the KOSDAQ index has been affected, closing with a 2.32% decline.
8. Saemaul Geumgo is not an organization under the management and supervision of financial supervisory authorities.
9. Saemaul Geumgo's total assets are about 300 trillion won, at the level of the Big 5 commercial banks, and it has 1,294 branches across the country.
10. The government announced measures to encourage the entry of a fourth carrier, as the mobile carrier oligopoly system is currently dominated by three companies.