Korean Federation of Community Credit Cooperatives also resumes group loans, normalizing mutual finance operations

[Financial News] After local agricultural cooperatives and credit unions, the Korean Federation of Community Credit Cooperatives has also resumed group loans.
According to the financial sector on the 27th, the federation decided to restart relocation, interim payment and final payment loans from that day. It will also resume loan brokerage sales for related products.
It will also lift restrictions on mortgage lending for non-members.
Previously, the federation had suspended relocation, interim payment and final payment loans, as well as household loans through loan brokers, from Feb. 19 in line with the government's policy of managing overall household lending. In May, it also stopped offering mortgages to members with less than one year of membership and to non-members.
The federation resumed group loans this month because the financial authorities decided to exclude such loans from each lender's household lending cap.
Credit unions and local agricultural cooperatives lifted their restrictions on group loan sales on the 25th. With the federation reopening lending on the same day, all major mutual finance institutions have now fully removed their restrictions on group loan sales.
[email protected] Seo Ji-yoon Reporter