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A Study on Strategies for Overcoming Crises in Cooperative Banking: Focusing on the National Agricultural Cooperative Federation's Mutual Finance

KwanSoo Moon Primary Contact
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Abstract

Cooperative banking has long served as a community-oriented, people-friendly financial institution. Based on trust and solidarity, it has provided customized financial services to rural areas and the socially underprivileged who face difficulty accessing traditional financial institutions, contributing to the revitalization of local economies. (1) Background/Purpose: This study analyzes the crises facing cooperative banking in Korea, focusing on the case of the National Agricultural Cooperative Federation (NACF)'s mutual finance, and proposes concrete strategic responses for its sustainable development. NACF mutual finance, which developed alongside Korea's rural economy since the 1960s to address predatory lending, now faces serious threats from intensified regulatory burdens, rural depopulation and aging, and the rise of fintech competitors. (2) Study Design/Methodology/Approach: The study employs literature review, case analysis, and policy analysis. Domestic cases include Toss Bank and Kakao Bank, whose digital innovation strategies are examined for applicable implications. Overseas cases include the Netherlands' Rabobank and France's Crédit Agricole, whose sustainability strategies, crisis experiences, and recovery methods are analyzed. (3) Findings: Three core strategies for overcoming the current crises are identified: (i) development of a differentiated digital platform model leveraging agricultural data unique to NACF; (ii) strengthening of inclusive finance identity through community cooperation with local governments; and (iii) relaxation of regulatory barriers including restrictions on non-member service usage, individual lending limits, and disproportionate provisioning requirements. (4) Originality/Value: This study provides a comprehensive, institution-specific strategic roadmap for NACF's mutual finance by integrating digital innovation approaches from leading fintech institutions with sustainability-centered lessons from globally successful cooperative banking models, and by identifying specific regulatory reforms necessary for the sector's revival.

References
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Keywords
cooperative banking mutual finance NACF agricultural cooperative fintech digital platform inclusive finance Rabobank Crédit Agricole regulatory reform
Details
Section Articles
Issue Vol. 2 No. 5 (2026): Volume 2 Issue 5 (May 2026)
Published 2026-05-30
Authors
KwanSoo Moon Primary Contact
농협중앙회
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How to Cite
A Study on Strategies for Overcoming Crises in Cooperative Banking: Focusing on the National Agricultural Cooperative Federation’s Mutual Finance. (2026). ASSIST Business Review, 2(5). https://jnl.ampla.page/abr/article/view/92