Korean Federation of Community Credit Cooperatives Strengthens Community-Based Finance, Supporting Jobs and Cultural Life Beyond Banking

[Financial News] The Korean Federation of Community Credit Cooperatives is strengthening the role of community-based financial institutions in areas where financial and daily-life infrastructure has weakened due to population decline and aging. Beyond financial support, it plans to identify projects needed by local communities—including local job creation and support for cultural facilities and vulnerable groups—to enhance the self-sustaining capacity of regional economies.
According to financial industry sources on the 2nd, the Korean Federation of Community Credit Cooperatives operated more than 460 branches in 89 depopulating areas as of the end of last year. Nationwide, it provides financial services close to local residents through a network of 3,198 branches.
The Korean Federation of Community Credit Cooperatives tailors its community contribution efforts to the characteristics of each region. Last year, Jeju Ujeong Saemaeul Geumgo provided a loan to Gujwa Village Travel Cooperative, a youth-led village enterprise, to build a village hotel. Since then, the number of tourists has increased, while the number of young people working at the cooperative has risen from five to 12. The case demonstrates how linking finance with local projects can boost tourism and create jobs for young people.
Samcheok Dowon Saemaeul Geumgo in Gangwon Province focused on the shortage of cultural facilities in the area and has operated two local cinemas—Samcheok Garam and Dogye—since 2020. In addition to providing cultural spaces for residents, it directly hired 10 employees from the area. It is the only place in Samcheok where residents can watch movies, attracting 120,000 local residents annually.
The Korean Federation of Community Credit Cooperatives continues to invest in social contribution projects tailored to local needs. According to the Korean Federation of Community Credit Cooperatives, it invested 257.8 billion won in community contribution projects last year and provided 195.3 billion won in the first half of this year alone.
In the first half of the year, 81.6 billion won was allocated to cultural welfare and support programs, including assistance for vulnerable groups. Another 89.1 billion won went to community development projects addressing local disasters and emergencies and promoting regional economic growth. A further 8.3 billion won supported member education programs, such as scholarships and financial education. The organization also invested 16.3 billion won through donations and contributions to policy funds. As spending in the first half reached about 76% of last year’s full-year support, total community contribution spending this year is expected to exceed the previous year’s figure.
Financial support for social solidarity economy organizations, including village enterprises and cooperatives, has also increased recently. The aim is to support the supply of funds so that local residents can solve community problems themselves and revitalize their regional economies.
Despite the challenging business environment caused by the prolonged downturn in the real estate market, the Korean Federation of Community Credit Cooperatives plans to expand its community contribution spending to 700 billion won by 2030. It aims to strengthen its identity as a cooperative and further leverage finance to help address problems facing local communities.
An official from the Korean Federation of Community Credit Cooperatives said, "For community contributions, it is important to continuously identify and support projects that local communities need rather than provide one-time assistance. We will continue expanding social contribution activities that local residents can feel in their daily lives and strengthen the role of cooperatives working together with local communities."
[email protected] Lee Hyun-jung Reporter