MG Community Credit Cooperative accelerates restructuring and NPL sales

MG Community Credit Cooperative is accelerating its financial restructuring to achieve profitability by 2028. In the first half of this year, the cooperative sold approximately 3.48 trillion won in non-performing loans (NPLs). Of this amount, 3.19 trillion won was processed through MG Asset Management Company (AMCO), while the remainder was managed via NPL funds and the Korea Asset Management Corporation.

To improve financial soundness, the cooperative has also expanded its merger activities. It completed the merger of 21 individual credit unions in the first half of the year, a significant increase from the seven mergers conducted during the same period last year. The organization aims to complete a total of 51 mergers by the end of the year. To ensure local accessibility, existing branches of merged unions will be maintained as branch offices.

In collaboration with the Ministry of the Interior and Safety, the cooperative is implementing stricter management protocols. This includes limiting new corporate loans with high delinquency risks and a plan to cap project financing (PF) loans at 20% of total loans starting in 2027. The cooperative currently holds 6.7 trillion won in various reserves to support its stability.