[Background and Necessity]
□ The proportion of mutual savings bank loans in non-capital regions (34.3%) is lower compared to the economic size (47.7%) and population (49.1%) share of these regions.

ㅇ In particular, multiple-region mutual savings banks, which account for more than half (59.5 trillion KRW) of the total savings bank loans (97.9 trillion KRW), mainly operate in the capital region.

※ Even if the proportion of loans in a specific operating region (e.g., Seoul) is 100%, 

it does not constitute a violation of the mandatory loan ratio regulation within the region for multiple-region mutual savings banks.

[Regulatory Content]
□ When calculating the loan ratio within the operating region for multiple-region mutual savings banks that include both capital and non-capital regions, apply differentiated weighting for capital and non-capital region loans 

(capital region loans: 90%, non-capital region loans: 110%).

ㅇ In addition, a grace period will be provided to ensure the applicable savings banks can comply with the regulation, such as expanding loan supply to non-capital regions (e.g., 1-year grace period).

1. Reason for Revision

The aim is to overcome the challenges faced by the mutual savings bank industry and enhance its core role in regional and low-income financial mediation. 

This includes expanding regional and low-income financial supply, strengthening operational capabilities and infrastructure, and supporting market stability and soundness management. 

This revision is part of institutional improvements related to the "Measures to Enhance the Role of Savings Banks" (announced on March 20, 2025), as well as other necessary adjustments.

a. Incentives for the Loan Ratio Calculation in the Operating Region (Article 22-2, Paragraph 2, Item 3)
To incentivize the expansion of policy-based low-income financial supply by savings banks, incentives will be provided for loans such as the "Hae Sallon" program when calculating the loan ratio within the operating region.

b. Mitigating Loan Concentration in the Capital Region for Multiple-Region Savings Banks (Article 22-2, Paragraph 3)
To alleviate loan concentration in the capital region for multiple-region savings banks (which operate in both capital and non-capital regions), the loan ratio calculation within the operating region will apply differentiated weighting for loans in the capital and non-capital regions.

c. Incentives for Non-Face-to-Face Personal Credit Loans by Small and Medium Savings Banks (Article 22-2, Paragraph 4, Item 2)
Considering the need to diversify the loan portfolios of small and medium savings banks and increase non-face-to-face (internet, mobile, etc.) personal credit loans, small savings banks with assets below 1 trillion KRW will receive preferential treatment for non-face-to-face personal credit loans when calculating the loan ratio within the operating region.

d. Addition of Post-Approval Requirement for Changes in Major Shareholders (Article 21, Paragraph 8)
Stock acquisitions due to court-ordered auctions will be added as a subject for post-approval regarding changes in major shareholders.

e. Addition of Borrowing Targets for the Korea Federation of Savings Banks (Article 62)
The Small and Medium Business Corporation will be added as a borrowing target for the Korea Federation of Savings Banks.

f. Improvement of Unreasonable Asset Soundness Classification Criteria (Annex 7, Item 2, Subitems B and C)
Allowing the classification of savings deposits and loans guaranteed by financial institutions as normal, similar to other industries, and establishing exceptions for small amounts in the case of provisional seizure or confiscation, in line with other industries.

g. Incorporation of New Project Viability Evaluation Standards in Supervision Regulations (Annex 7-1, Items 1 and 2)
The revised project viability evaluation standards, which are already being applied as industry best practices, will be incorporated into the supervision regulations.

h. Changes to the Enforcement Decree Reference Provisions (Article 13-2, Item 3, etc.)
Changes in the reference article numbers (from Enforcement Decree Article 11-6 to Article 11-7).