Korean Federation of Community Credit Cooperatives (KFCC) Vice President Hwang Kook-hyun holds a video conference with experts of the European Association of Cooperative Banks at the KFCC office in Seoul on June 3. Photo courtesy of KFCC

Discussions underway about digital transition, new business models

The Korean Federation of Community Credit Cooperatives (KFCC) strives to better adapt to the changes in the global financial ecosystem, together with its peer _ the European Association of Cooperative Banks (EACB).

Toward that end, officials of the KFCC, the primary apex organization for Korea’s cooperative banking sector, held a video conference on June 3 with experts of the EACB.

Also included in the agenda was finding ways to strengthen the KFCC’s presence in the rural areas by benchmarking the EACB, which has successfully underpinned Europe’s rural economy amid the fast urbanization.

They also discussed digital transformation and new business models necessary to deal with the latest trends in the international financial markets.

Led by Chairman Park Cha-hoon, the KFCC represents about 1,300 financial cooperatives in Korea. Its customer base tops 20 million people across the country.

In particular, the outfit achieved an exploit last year by surpassing 200 trillion won ($180 billion) in the total asset. It took eight years for the KFCC to double its asset to 200 trillion won.

Established in 1970, the EACB maintains cooperative banks in 22 countries, which include thousands of small, regional, and large member banks in Europe.

Nina Schindler, formerly managing director at Deutsche Bank, took charge of the EACB late last year.

The KFCC garnered a membership of the EACB in 2020.