Myeongdong Saemaul Geumgo is collaborating with Punggi Saemaul Geumgo in Gyeongbuk to create a cooperative growth model by sharing operational know-how. This initiative is notable as it focuses on building self-sufficiency among credit unions rather than offering mere one-time support, highlighting a case of trust recovery within the Saemaul Geumgo sector.
In an interview on May 10, Chairman Cha Seong-yong stated, "It is not enough for just one credit union to succeed; we must grow together to earn the trust of the entire Saemaul Geumgo network. True cooperation involves creating a foundation for the other credit union to grow independently."
As of the end of last year, Myeongdong Saemaul Geumgo reported assets of 447.3 billion won and a net profit of 2 billion won. Its delinquency rate stands at 3.64%, and its capital adequacy ratio is 6.79%, earning it a comprehensive management evaluation grade of 2. It is recognized as a strong credit union maintaining stable profitability and soundness in the competitive Myeongdong business district, which is home to many large financial institutions.
The collaboration between Myeongdong and Punggi Saemaul Geumgos focuses on enhancing operational capabilities by understanding the unique conditions of urban and rural credit unions. Myeongdong Saemaul Geumgo is sharing its accumulated experience in loan management and customer relations with Punggi Saemaul Geumgo. The goal is to foster mutual understanding of the different business environments through staff exchanges, laying the groundwork for rural credit unions to grow independently.
Chairman Cha emphasized, "Ceremonial events like gift-giving do not provide real assistance. The key is to share our strengths and weaknesses openly and find better operational strategies together."
He believes that cooperation among credit unions is closely tied to the overall recovery of trust in the Saemaul Geumgo network. Following issues related to project financing and high-risk assets, risk management has been strengthened across the sector, and he argues that individual recovery efforts alone are insufficient. He stated that rural credit unions must grow steadily to enhance the overall image and trustworthiness of the Saemaul Geumgo network.
The competitiveness of Myeongdong Saemaul Geumgo stems from its commitment to community cooperation. While Myeongdong is a prominent area filled with large banks and financial institutions, Myeongdong Saemaul Geumgo has built long-term trust relationships primarily with small business owners and self-employed individuals. Chairman Cha remarked, "The strength of Myeongdong Saemaul Geumgo lies not in its size, but in trust, relationships, and community cooperation."
Specialized financial products also serve as a differentiating factor. Myeongdong Saemaul Geumgo has developed a mid-interest truck loan product aimed at those in the freight transportation sector. This initiative aims to provide relatively lower interest rates to truck owners who have been reliant on high-interest loans. Chairman Cha noted, "Truck loans could become a foundational industry for our credit union," adding that he and his staff have actively engaged in the field to establish this base.
He stressed that a stable profit base is essential for sustainable cooperation. "We need to secure profitability to fulfill our public role reliably," he said, explaining that they are creating a structure to increase community contributions based on the credit union's profit scale.
Myeongdong Saemaul Geumgo has also been involved in social contribution activities, such as providing health food support for the elderly, distributing supplies for heatwave preparedness, and sponsoring local welfare projects. Chairman Cha stated, "Saemaul Geumgo is a cooperative finance based on the spirit of mutual assistance. Beyond the growth of individual credit unions, the entire Saemaul Geumgo network must grow healthily together to establish itself as true social finance."
* This article has been translated by AI.
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