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2006 Highlights

Mr. Oh-man Kwon, the 29th Chairman & President of NACUFOK

NACUFOK held the 23rd General Assembly Meeting at the Training Center on February 20, 2006. Mr. Oh-man Kwon was selected as the 29th Chairman & President of NACUFOK at the meeting. Chairman and President Kwon emphasized the importance of growth & development strategy, corporative management system, and ethical and transparent business conduct for the future of the credit union through his inaugural speech.

Moved headquarters to Daejeon

NACUFOK had moved its main functions to Daejeon with the move of Information System Department on May 27 since it began with the move of Planning & Coordination department on May 19. There are currently 3 Divisions, 7 Departments, 1 Center, and 12 Regional Offices under NACUFOK, and among them all, 3 Divisions, 6 Departments, and 1 Regional Office are now located in Daejeon Headquarters. Only Inter-lending Department in charge of capital management remains in Seoul to move all major functions of the CU, including the Training Center where the credit union campaign has bloomed. Daejeon Headquarter is built over the land 1,516-pyeong (5,000m2) with the architectural area of 553-pyeong (1,830m2) and the floor space of 8,866-pyeong (29,300m2) spreading over 3 underground floors and 17 aboveground floors. Daejeon is located in the geographical central part of Korea, and it is the nation’s transportation hub. NACUFOK’s move to Daejeon and creation of a new network will definitely enhance the efficiency of meetings, events, and training programs as well as strengthening the relationship among credit unions.

Launch of Mutual Insurance Customer Service Center

On June 22, 2006, NACUFOK launched the Mutual Insurance Customer Service Center to provide support to relevant consulting services related to the Mutual Insurance business. The center, which also serves as a call center, plans to handle relevant complaints or requests made by members and insurance subscribers on a one-stop basis. It has taken over the function of the existing Telemarketing/Call Center and is expected to meet the diverse demands of users and provide professional consulting service. The center (Phone : 1544-3030) operates between 9:00 am and 6:00 pm on weekdays.

Enactment of Code of Ehtics

On October 30, 2006, NACUFOK enacted the Code of Ethics for Employees of Korean Credit Unions as part of the effort for more systematic ethical management. The code is comprised of a Preamble and six chapters. The Preamble states core ethical guidance to be followed by employees. Chapter 2 states that members should be respected and their interests should be protected. Chapter 3 includes contents concerning the need for respect paid to employees and their reasonable guidance and supervision. Chapter 4 stresses the importance of faithful behavior as employees, of compliance with laws and regulations, and of mutual respect between employees. Chapter 5 states that the private life of employees should be respected and positive efforts should be made to train good-quality employees. Finally, Chapter 6 stresses the importance of observing proper social values and participation in social activities. The enactment of the Code of Ethics is expected to serve as an occasion to refresh the relevant resolve of employees at primary Credit Unions and NACUFOK.

Established Dongwon Credit Union and Samil Accouting Corporation Credit Union

On September 29, 2006, Dongwon Credit Union and Samil Accounting Corporation Credit Union obtained the Financial Supervisory Commission's (FSC) approval for their respective establishment. They Started operation and joined NACUFOK. Prior to this, the most recent establishment of new Credit Union took place in 1998. The FSC has taken a conservative attitude toward establishment of new credit unions, which were started in 2004, finally bore fruit in recognition of the sufficient feasibility of the business plan. Well performing businesses and local administrative units with a sufficient number of potential members will be encouraged to establish credit unions in consideration of their potential for development and the possibility of the FSC's approval. Efforts will also be made to open the way for establishment of credit unions for community and association/group through enhancement of the credit worthiness of Credit Unions.

Recording profits for five years

Credit unions from across the country recorded an aggregate net profit of KRW122.4 billion as of the end of 2006 to continue from KRW89.4, 99.5, 131.7 and 153.6 billion in 2002, 2003, 2004 and 2005, respectively, based on its stable profit structure. The aggregate amount of the assets of Credit Unions has increased rapidly to reach 26.3 trillion won by the end of 2006. Asset soundness and profitability have also increased strongly. In 2006, the aggregate asset amount of Credit Unions grew by 9.7 percent. Net capital ratio stood at 3.1 percent, recording an increase for five straight years. The ratio of loans in the total assets showed the highest figure in the post-financial crisis period. Fee revenue has increased by 15 percent, indicating that the revenue structure is going in a desirable direction.