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Soon after the credit unions were founded in Korea, a controversy focused on their development strategies began. The controversy which received attentions from the credit union leaders prevailed through out 1970s. At that time it was said that the controversy could have negative effects on the identity of the credit union in Korea and would make the credit unions difficult to get on the right tracks. Nowadays questions have been posed on the identity of the credit union. If the controversy was detrimental to the normal development of the credit unions and did harm their identity, its negative effects may carry on until today. The purpose of this paper is to examine the backgrounds, meanings and implications of that controversy. This paper argues that the controversy inside the credit union in the 1970s harmed the identity of the credit union.