Officials of the Korean Federation of Community Credit Cooperatives (KFCC) in Uganda celebrate as the outfit gains approval as an official financial institution of the country. Photo courtesy of KFCC

5,000 Uganda people enjoy financial services from KFCC

The Korean Federation of Community Credit Cooperatives (KFCC) announced on May 7 that the outfit had gained the status of a perpetual legal entity in Uganda.

This means that the KFCC has become an official financial institution of the country, which has acknowledged the sustainability of the KFCC’s business model.

The KFCC, the leading apex organization for Korea’s cooperative banking sector, tapped into Uganda in October 2018 and up to 5,000 Uganda people are now enjoying financial services through the KFCC.

“We have collaborated with the South Korean government to enable Uganda people to access financial services over the past few years,” a KFCC official said.

“Our operational self-sufficiency (OSS) ratio in Uganda tops 100 percent. And in some places, the ratio surpassed 900 percent to show the stability of our business.”

The OSS refers to the ratio, which gauges any financial institution’s ability to generate enough revenues or incomes to cover the total cost incurred in running its business.

A ratio of 100 percent is a break-even point. Any figure higher than 100 percent demonstrates that the outfit is doing fine.

“We are trying to help Uganda people in rural areas realize their dream,” KFCC Chairman Park Cha-hoon said.

In South Korea, the KFCC represents about 1,300 financial cooperatives across the nation. Its customer base is bigger than 20 million in Korea alone.

The KFCC has briskly made inroads into foreign countries to share its successful business model.