Suhyup Central Federation implements financial reforms and AI risk training

The Suhyup Central Federation is undertaking comprehensive institutional reforms following 28 management improvement and cautionary requests from the Financial Supervisory Service. Key measures include recalibrating risk tolerance limits to align with available capital, strengthening internal controls for branch establishment, and establishing formal internal regulations for managing non-performing loans through its subsidiary, Suhyup NPL Debt.

The federation also plans to implement stricter household loan limits based on individual cooperative characteristics and enhance oversight of joint loans and collateral management to prevent regulatory violations. Suhyup has committed to submitting a detailed reform plan to the Financial Supervisory Service within six months.

In a parallel effort to bolster risk management capabilities, Suhyup Central Federation and Sh Suhyup Bank have launched an advanced training program focused on AI-based corporate credit analysis. The initiative aims to combine AI’s rapid data processing and structuring abilities with the professional intuition of credit experts to identify early signs of corporate insolvency amidst increasing economic uncertainty.