Purpose of Establishment

The Korea Federation of Savings Banks (KFSB) is a non-profit organization established for the purpose of promoting the healthy development of savings banks and protecting the benefits of customers.

The KFSB was established in accordance with Article 25 of the Mutual Savings Banks Act in 1973. It was renamed the National Federation of Mutual Savings and Finance Companies in 1975, and again in 2002 changed its name to Korea Federation of Savings Banks.
The KFSB performs the following key functions: support for savings banks, conduct duties required as a central savings banks, support for shared computer networks, and work for autonomous regulation of banking business.

Key Functions of KFSB

  • Support for Savings Banks
    Conducts research and surveys for the
    development of the business of savings banks
    Performs activities for public relations to enhance
    the reputation of savings banks
    Provides education and training for employees of savings banks
  • Role as Central Savings Bank
    Receives and manages reserve deposits from savings banks
    Receives and manages deposits (residual funds) from savings banks
    Grants loans to savings banks, rediscounts commercial paper, and
    provides a guarantee of payment for savings banks
    Provides emergency financial support for savings banks
  • Support for Shared Computer Networks
    Establishes, operates, and maintains shared
    computer networks tosupport the business of savings banks
    Conducts R&D on information technology
    such as smart banking and FinTech
    Exchanges data with financial institutions
    as the IT center of savings banks
    Manages customers’ data secure
  • Autonomous Regulation of Banking Business
    Establishes a sound credit system and protects customers
    Exercises the entrusted authority of the Financial Services ommission
    Provides standards and guidelines on the business
    methods and regulations for savings banks
    Analyzes business management of savings banks
    Conducts autonomous deliberations on advertising
    contents for the products of savings banks