The CU Online Shopping Mall (cumall.cu.co.kr) was opened on January 10, 2005, with an aim to tackle issues related to the credit union’s price negotiation power and human and time inefficiency in procurement. It bears many positive results because the Mall brings the human network of the credit unions tightly together. Economy of scale and cost reduction following the large-sum purchase as well as the employment inefficiency decrease have also a considerable indirect effect on the credit union as a whole. The Mall had acquired the services provision function for the credit union in the year 2005, and it plans to extend the clientele to the members in the near future.
Information System Department of NACUFOK announced its plan to establish a new financial information system for the next generation by building the Daejeon Information Center and integrating all ledgers of all credit unions. Preparation work for this project was launched since June 2005. Combined management of the operation and credit-liability balance of each credit union at the Information Center will set the basis for total provision of custom-made financial services, and maximize the profit and business productivity. Furthermore, selective financial information in line with the members’ transaction trend will be made available via various channels. The system will also allow members engage in one-on-one consultation for selecting investment means or acquiring loans.
The asset of mutual insurance business holding made a breakthrough beyond the KRW 1 trillion-level in September 2005. As of the end of 2005, the total asset holding amounted to KRW 1.186 trillion to mark a KRW 72.7 billion (7.7%) year-on-year increase from KRW945.9 billion in 2004. The mutual insurance premium earning has also recorded a steady growth from KRW 217 and 228.1 billion in 2003 and 2004, respectively to KRW238.9 billion in 2005, making the payout capacity ratio 473.7%. Also, the existing TM Call Center has become a part of the Mutual Insurance Customer Satisfaction Center to better meet the complex needs of customers through specialized consultation.
PR & Marketing team of NACUFOK distributed some 30 types of the New Credit Union Sign System including the head plaque to all credit unions in November 2005. This action was taken to remedy the problem arising from the lack of consistency in the credit union signs and ATM designs from across the country. NACUFOK produced a CD-ROM of guidelines on types, colors, and design ratio under the New Sign System, and it ordered the signage plaques and more in bulk.
Credit unions from across the country recorded the aggregate net profit of KRW 153.6 billion as of the end of 2005 to continue the steady upward trend moving from KRW 89.4, 99.5, and 131.7 billion in 2002, 2003, and 2004, respectively, based on its stable profit structure. Loans increased by KRW 1.275 trillion (10.4%) from KRW 12.2717 trillion of 2004 to reach KRW 13.5467 trillion in 2005. NACUFOK’s credit business posted the net profit of KRW168.1 billion, which comprised of KRW 158 billion from the credit business accounting and KRW 10.1 billion from the repayment reserve accounting. The surplus trend that continued for three consecutive years following KRW 17.6 and 20.6 billion in 2003 and 2004, respectively, showed that the last year’s objective of “Making the Sustainable Profit Structure Sound” was met.