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.

Credit unions from across the country recorded the aggregate net profit of KRW153.6 billion as of the end of 2005 to continue the steady upward trend moving from KRW89.4, 99.5, and 131.7 billion in 2002, 2003, and 2004, respectively, based on its stable profit structure. Loans increased by KRW1.275 trillion (10.4%) from KRW12.2717 trillion of 2004 to reach KRW13.5467 trillion in 2005. NACUFOK’s credit business posted the net profit of KRW168.1 billion, which comprised of KRW158 billion from the credit business accounting and KRW10.1 billion from the repayment reserve accounting. The surplus trend that continued for three consecutive years following KRW17.6 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.

The asset of mutual insurance business holding made a breakthrough beyond the KRW1 trillion-level in September 2005. As of the end of 2005, the total asset holding amounted to KRW1.186 trillion to mark a KRW72.7 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 KRW217 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.

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.

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.