Financial authorities are set to initiate inspections of MG Community Credit Cooperatives amid an increasing risk of financial instability. This marks the first examination on MG conducted by financial regulatory authorities instead of the Ministry of the Interior and Safety, which normally supervises the credit union.
MG Community Credit Cooperatives is set to undergo major shifts in its leadership and management system by weakening the authority concentrated on its chairman and by restructuring the entire system under a newly established professional CEO position.
The financial industry is taking emergency measures to prevent potential bank runs, following a massive capital outflow at MG Community Credit Cooperative last month.
Concerns over real estate project financing are resurfacing in the capital market after GS Engineering & Construction (GS E&C) decided to bear losses of 550 billion won ($422 million) due to its decision to completely reconstruct an apartment complex in Incheon, west of Seoul.
SEOUL: South Korea's financial services regulator has asked major commercial banks to prepare around US$4 billion in financing to support a credit cooperative hit by customer withdrawals, two banking sources familiar with the matter said on Monday (Jul 10). An official at the Financial Services Commission