Shown above is the head office of the Korean Federation of Community Credit Cooperatives in Seoul. In time with its 60th anniversary, the outfit strives to prepare for the next 100 years. Photo courtesy of KFCC

Korean co-op financial outfit guns for digital transformation

The Korean Federation of Community Credit Cooperatives (KFCC) announced on Feb. 22 that it would embrace ESG as its major management principle.

The KFCC made the decision in the outfit’s general meeting earlier this month, designed to share its 2023 management strategy in time with its 60th anniversary.

The country’s leading apex organization also stressed ethical management and digital transformation aimed at substantially improving its brand value.

Topping other things off, the KFCC said that it would put the top priority on ESG management by offering helping hands to underprivileged people and going global.

The KFCC has tapped into underdeveloped economies to share its grassroots financial models by setting up a total of 56 branches in three countries of Myanmar, Uganda, and Laos.

Short for Environmental, Social, and corporate Governance, ESG refers to the three major factors in gauging the sustainability of a corporation or business.

The concept has become a buzzword in the world over the past few years.

As the second goal, the KFCC vowed to improve its culture in more transparent and fairer fashions, which would help enhance its trustworthiness from the outside.

In addition, the KFCC strives to continue its digital transformation after setting up an integrated info-tech center in 2020 and launching a dedicated committee last year. In 2019, it established a department focusing on digital finance.

For this year, the entity is scheduled to come up with an integrated app and strengthen cooperation with tech giants.

“This year marks the 60th anniversary of the KFCC, and the total asset is expected to reach 300 trillion won ($231 billion),” KFCC Chairman Park Cha-hoon said.

“By strengthening field-oriented management and internal cooperation, we will find out next-generation growth engines to help us last for the next 100 years.”

The KFCC represents around 1,300 financial cooperatives in South Korea.