1. Reason for Proposal

This Amendment prescribes the scope of local credit unions that are required to entrust the election of the union president to the election commission as delegated by presidential decree in accordance with the amended Credit Unions Act (Act No. 19565; to be promulgated on July 18, 2023), and separates pension savings credit, etc., which by nature are intended to protect post-retirement income, from standard deposits and prescribes a separate limit of guarantee, thereby aiming to ensure greater protection of credit union members.

2. Major Provisions

A. The scope of local credit unions that are required to entrust the election of the union president to the election commission (Article 14-5)

Prescribe that the scope of local credit unions that are required to entrust the election of the union president to the election commission shall be those local credit unions whose total assets are worth 100 billion won or more based on the average balance in the immediately preceding business year.

B. Prescribe a separate limit of guarantee for pension savings credit (Article 19-8 (3) 1)

Separate pension savings credit, which is important for protecting the post-retirement income of the public, from standard deposits, etc., and specify a separate limit of guarantee.

C. Newly insert a limit of guarantee for accident mutual aid money in mutual aid products (Article 19-8 (3) 2)

Prescribe that mutual aid money paid in the event of grounds for payment stipulated in the terms and conditions of the mutual aid (excluding mutual aid money paid at the end of the mutual aid period) shall be separated from standard deposits and subject to a separate limit of guarantee.