South Korea’s financial landscape faces a looming crisis as the Korean Federation of Community Credit Cooperatives, more commonly known as Saemaul Geumgo, grapples with an escalating financial predicament due to its overexposure to the real estate market and its decentralized organizational structure.

Saemaul Geumgo, a mutual credit institution, faces soaring delinquency rates and the specter of bank runs despite the organization’s vast assets and user base, and concerns are rising not only about the immediate threats to the company’s stability but also the potential aftershocks across South Korea’s financial ecosystem.