An a bid to improve the governance structure of the NACUFOK, an amendment to the Credit Union Act was made to distribute the rights that used to be concentrated on the Chairman to the Director , Business Operating Division and the Director, Supervisory Division. NACUFOK and primary credit unions became subject to the Korea Housing Finance Corporation Act, in March 2004. Thus, CUs are now allowed to offer long-term (more than 10 years) mortgage loans. Also, an organizational reshuffling was carried out from four regional offices to make twelve regional offices for closer cooperation with the credit unions.

According to the result of the accounting settlement of the credit unions nationwide at the end of 2004, they posted a net profit of 131.7 billion, a 32.4% year-on-year increase, recording profits for three years in a row (89.4 billion won in 2002 and 99.5 billion won in 2003). Looking at their total assets, they posted a 10.4% year-on-year increase (2,003.3 billion won). Deposits increased by 12.6% (or 2,006.2 billion won) year on year.

As a result of an intensive sales promotional campaign following establishment of the electronic banking system, a total of 1.5 million online accounts were made. The number of "financial VAN" members' stores also increased by 145% to 19,132 at the end of 2004 from the end of 2003. NACUFOK also introduced Sinhyup-Hyundai Card C, a check card, and Sinhyup-Hyundai Card M equipped with the traffic card function in cooperation with Hyundai Card.

Following promotional activities for the mutual insurance service, the NACUFOK posted 9.45 billion won in premiums earned, which exceeded the annual target by 8%. The result is particularly noteworthy as the market experienced a very difficult situation amid the drawn-out recession of the economy and the overall shrinkage of the business in 2004.

In May, CSS (the Credit Scoring System) was adopted. The system is designed to check individual loan applicants' creditworthiness based on statistical data to minimize loan risks and provide differentiated service to members with good credit ratings.

Hanareumyeongye Loan, a loan product for members and non-members, was introduced into the market in August 2004. The relevant credit union and NACUFOK jointly work to meet the demand for loans for those whose combined amount of loans has exceeded the designated limit of each primary credit union.

NACUFOK administered joint written exam for the promotion of candidate primary credit union employees was carried out for the first time. It is expected that the exam will pave the way for the credit unions' fair and objective personnel affairs, which in turn will help them enhance their competitiveness through systematic personnel management.

NACUFOK, jointly with ACCU (Association of Asian Confederation of Credit Union), hosted the ACCU Forum and Annual General Meeting, which were held at the Korea Securities Training Institute in Asan city from September 13 through 19. A total of 279 credit union leaders from 27 countries, including U.S., Canada, Germany as well as those from Asian countries attended the event. The Chairman & President of NACUFOK, Dr. Augustine K. Lim was elected as the president of ACCU at the Annual General Meeting.