"Assets of 25 Trillion Won, Net Profit of 343.1 Billion Won" Military Mutual Aid Association Emerges as a Global Heavyweight [fn Market Watch]

[Financial News] The Military Mutual Aid Association, one of the major players in South Korea's capital market, is closing in on the 25 trillion won mark in total assets. Along with its expanded scale, first-half net profit jumped by more than 50%, and more than half of its investment assets are now allocated overseas, signaling a shift in the center of gravity of its asset management toward global markets.
According to the Military Mutual Aid Association on the 27th, total assets stood at 24.9433 trillion won at the end of June, up 479.8 billion won from the end of last year. Since 2022, its average annual asset growth rate has been about 16%.
Profitability also improved. Operating profit for the first half rose 22.6% year on year to 663.8 billion won, while net profit increased 52.9% from 224.4 billion won to 343.1 billion won. Financial capacity also expanded. Capital surplus rose by 713.1 billion won to 4.4781 trillion won from 3.765 trillion won at the end of last year. The reserve ratio also climbed 5.5 percentage points, from 125.5% to 131%.
What the investment banking industry is watching closely is the association's shift in asset allocation. Investment assets reached 15.9022 trillion won this year, up 814.8 billion won from the end of last year. In particular, the overseas investment share reached 50.3%, surpassing domestic investments at 49.7%. The overseas ratio had already risen from 43.6% at the end of 2024 to 47.9% at the end of last year, and it crossed the halfway mark for the first time this year. The increase reflects a diversification of investment destinations, centered on advanced economies such as the United States and Europe.
A senior official in the investment banking industry said, "As the association's assets are growing rapidly, the fact that overseas exposure has exceeded half of investment assets suggests that the asset allocation strategy itself is changing, not just the scale of growth." The official added, "However, as global asset prices and exchange-rate volatility increase, both the expansion of overseas assets and risk management capabilities will be put to the test."
In corporate finance, the association plans to expand investments in cutting-edge industries such as Artificial Intelligence (AI) and the bio-healthcare industry, while continuing investments in data center workload and renewable energy projects. In real estate, it will maintain a selective investment approach centered on stable PF deals and high-quality commercial properties.
It is also increasing the amount returned to members through investment performance. Member welfare spending in the first half of this year reached 320.7 billion won. In July, it raised the interest rate on its deposit-type lump-sum savings product by 0.40 percentage points, from 4.20% to 4.60% per year.
Membership also grew by 57,339 over four years, from 189,306 at the time Chairman Jeong Jae-kwan took office to 246,645 at the end of June this year.
The investment banking industry also says that as the Military Mutual Aid Association approaches the 25 trillion won asset mark, the key issue going forward will be not further expansion in scale, but how stably it can manage the growing pool of funds. With overseas assets now accounting for more than half of total investment assets, its ability to respond to global financial market volatility has become even more important.
Chairman Jeong Jae-kwan said, "Safeguarding and growing members' assets is our most important mission." He added, "We will generate stable returns through thorough risk management and by securing future growth engines."
[email protected] Kim Kyung-ah Reporter