Mutual finance groups in South Korea are facing tighter rules on real estate project financing and broader asset-soundness requirements, forcing them to curb property-related lending and bolster capital. The financial authorities want the sector to strengthen its role in local and low-income finance, but the industry says stable earnings are needed to sustain such lending. It is calling for adjustments to household-loan regulations, particularly outside the capital region, to reflect differing regional conditions.

MG Community Credit Cooperatives has introduced a local tax virtual account payment service, the first in South Korea\'s mutual finance sector. The cooperative said the \"integrated virtual account\" collection service started on June 22. The system was built by linking its computer network with the local tax revenue collection platform operated by the Korea Local Information Research and Development Institute under the Ministry of the Interior and Safety. The service initially applies to regular and occasional local tax payments and is available in 49 local governments, excluding Seoul.