Credit Union Audit Ongoing

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Credit Union Audit Ongoing

The Financial Supervisory Service said Friday that it is reviewing the books of the National Credit Union Federation of Korea and will intervene in the management if large-scale mismanagement and losses are uncovered.

An official at the regulatory agency said Friday that the investigations are in their fourth day. The federation said it is preparing a management rescue plan for the agency, adding that it plans to return to profitable operation by 2010 through conservative fund management and downsizing of personnel and fixed assets. "Operations are improving dramatically recently," said an official at the federation. "We are recording a profit of 54 billion won ($39 million) as of May 15."

The federation recorded negative net assets of 567.4 billion won at the end of April on total liabilities of 6.5 trillion won. Most of the losses have reportedly stemmed from investments in stocks and write-downs of bad debts to troubled corporations. "We are not experiencing liquidity problems," the federation official said, however.



by Huh Kwi-shik

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