South Korea's Saemaul Credit Union Task Force Extends Past Deadline as Regulators Debate Authority

According to financial authorities, on July 5, South Korea's special management task force overseeing Saemaul Credit Unions has extended past its original deadline without finalizing an extension decision, with authorities set to conclude this month. The task force, jointly operated by the Ministry of Interior and Safety and the Financial Services Commission, was initially set to end on June 30, but regulators lack legal authority to make it permanent, creating disagreement on next steps. A financial official stated the task force can only review performance metrics and offer improvement suggestions under current law, with no enforcement powers. The measure follows consecutive annual losses of 1.27 trillion won in 2025 and delinquency rates that peaked at 8.37% before improving to 5.08%.
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