[Background]
By strengthening the capital ratio regulations of the Korean Federation of Community Credit Cooperatives (KFCC), this amendment aims to induce an enhancement in its loss-absorbing capacity. Additionally, by reorganizing regulations on high-risk real estate-related loans (such as Project Financing [PF] loans), it seeks to promote the sound operation and sustainable development of the Geumgos (community credit cooperatives), thereby ensuring a smooth supply of funds to local communities, ordinary citizens, and Geumgo members.
[Main Points]
A. Improvement of the criteria for calculating the estimated recovery value of non-performing loans (Draft Articles 13 and 15; Attached Tables 2-1, 2-2, and 6)
- If "legal proceedings are scheduled to commence within 3 months" for non-performing loans, the final appraised value of the collateral may be used as the estimated recovery value on a one-time basis.
- Even if the "collateral ratio to the total loan amount is 150% or more" for non-performing loans, the final appraised value of the collateral cannot be used as the estimated recovery value unless the case falls under an exception category.
- For non-performing real estate development-related loans that have remained unresolved for a prolonged period, the final appraised value of the collateral cannot be used to calculate the estimated recovery value.
B. Establishment of limits on real estate development-related loans (PF loans) and exceptions to limit regulations for the real estate and construction industries (Draft Article 21)
- Establishing a loan limit for real estate PF loans (20% of total loans) and establishing an aggregate loan limit for the real estate industry, construction industry, and real estate PF loans combined.
- Workplace and organization Geumgos whose common bond consists of workers in the real estate and construction industries are exempt from the application of these industry-specific loan limits.
C. Upward adjustment of the management guidance ratio for the Korean Federation of Community Credit Cooperatives (Draft Article 43)
