한국지방재정공제회 LOCAL FINANCE ACCOCIATION

Purpose and system

Purpose and system

The system was introduced in 1964 to control publicly owned property and support disaster recovery for local autonomous entities in the form of mutual-aid. Our association is a special association established for the development of local finances through our disaster recovery project, maintenance of public buildings, local government vessel businesses, and a mutual-aid project towards the liability damages and member support businesses in an efficient manner. Our association promotes such business for local autonomous entities over the country under the spirit of mutual-aid to resolve financial difficulties for them.
(Relative Act: Act number 6872 - Korea Local Finance Association Act)


Introduction of Mutual-aid system

The mutual-aid system and insurance have a common characteristic from a business point of view as businesses as both of them help to prepare for unexpected accidents. However, while a mutual-aid system pursues public benefits for member insurance pursues benefits for company and that is big difference between them.

  • A mutual-aid system is a public benefit based business in which members (each local autonomous entity and corporation, industrial complex established by local autonomous entities) participate in a same purpose and insurance is marketable an item sold to different people.
  • A mutual-aid system raises funds through mutual-aid projects and use these funds to support businesses for members and for benefits of members and insurance pursues company's benefit by selling insurance product.
  • Decisions are made by members for maximized benefits for members in mutual-aid system, and the insurance company makes a decision through their management board to maximize the benefits to a company.
Function of Association

Established in 1964 for the management of publicly owned property of local autonomous entities and support of disaster recovery in the manner of mutual-aid.

  • The association has been operating with 364 members of local autonomous entities, local corporations, local industrial complexes and local associations and has been supporting or promoting disaster recovery projects, maintenance of public buildings, local government vessel businesses, and mutual-aid projects for the liability from damages and member support businesses by raising funds and expanding businesses.
  • This mutual-aid system raises funds through mutual-aid projects and use the funds to support business for members and for the benefit of members and insurance pursues company's benefit by selling insurance products.
Division in Charge : Mutual-aid project Phone number : +82-2-3274-2034