2023-07-11 14:55:54
[대한경제=심화영 기자] In the political world, voices are growing that the management and supervision of Saemaul Geumgo should be transferred from the Ministry of Public Administration and Security to the financial authorities. Controversy over the supervisory authority of Saemaul Geumgo seems to be reigniting as concerns regarding insolvency due to the high delinquency rate have been raised following various corruption cases at Saemaul Geumgo last year.
On the 11th, Rep. Kwon Seong-dong, a member of the National Assembly’s Public Administration and Security Committee, said on Facebook, “Of the 28,891 employees of 1294 vaults nationwide, only executives account for 47%, and the central chairman and others are called’God’s safekeepers’ who receive high salaries. “For a more stringent supervision system, we need to discuss in earnest how to move the relevant agency from the Ministry of Public Administration and Security to the Financial Services Commission,” he argued.
According to the National Assembly, the Democratic Party of Korea is also preparing to propose an amendment to the Saemaul Geumgo Act as a representative initiative by Democratic Party lawmaker Kang Byung-won, an opposition secretary of the National Assembly’s Public Security Committee. According to the draft amendment, the authority of the Financial Services Commission, which was only available for ‘consultational supervision’ with the Ministry of Public Administration and Security for credit business and mutual aid business, was clarified so that ‘direct supervision and necessary orders for supervision’ might be made, transferring the credit business supervision authority from the Ministry of Public Administration and Security to the Financial Services Commission. Transferring is the key.
At Saemaul Geumgo, which is outside the jurisdiction of the financial authorities, embezzlement and breach of trust incidents are repeated every year. As a result of analyzing the current status of Saemaul Geumgo financial accidents from 2017 to August of last year by Rep. Hye-in Yong of the Basic Income Party of the National Assembly’s Public Administration and Security Committee, the number of cases of embezzlement, breach of trust, fraud, and brokerage by executives and employees was 85, and the amount of damage was 64.1 billion won.
However, internally, it is detected that the Ministry of Public Administration and Security does not want to place the Saemaul Geumgo, which has total assets of 284 trillion won and is closely related to the finances of local governments. Therefore, it is uncertain whether the Ministry of Public Administration and Security, which has authority over the personnel and organization of government ministries, will provide sufficient support even if the Financial Services Commission is transferred to the Saemaul Geumgo management authority.
The Financial Services Commission is also not active in taking over the Saemaul Geumgo. A high-ranking official from the Financial Services Commission said, “In the meantime, there have been many bills that say that the management and supervision agency of Saemaul Geumgo should be moved, but once the crisis has passed, the related details have been introduced.” It is not an easy thing to do,” he said.
Among them, Saemaul Geumgo is currently delinquent with 12 trillion won out of total loans of regarding 200 trillion won. The delinquency rate of Saemaul Geumgo, which was 1.93% in 2021, soared to 6.2% in 2023. An official from the financial sector said, “The main culprits in delinquency of Saemaul Geumgo are corporate loans, most of which are loans to construction companies and developers.
Vice Minister of Public Administration and Security Han Chang-seop answered in a joint briefing with related ministries related to the integrity of Saemaul Geumgo at the Seoul Government Complex on the 6th, “I think the priority is to overcome the current situation and regain stability” regarding the transfer of supervisory authority. Reporter Sim Hwa-young
Correspondent Shim Hwa-young dorothy@
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