The Cooperative Credit Societies were one of the influential rural organizations established under the supervision of the Government-General of Korea with the aim of stably controlling rural colonial Korea. In this paper, the characteristics of the Cooperative Credit Societies as a "colonial financial institution" are analyzed, paying special attention to the performance of its loan project. They were similar to rural cooperatives in contemporary mainland of the Japanese Empire, with some important distinctions. First, the managing directors of each Cooperative Credit Society were directly appointed by the Governor-General of Korea, and eventually three-fourths of them were Japanese. Second, the savings project was open to non-members and the share of the non-members' savings was rather large. Third, the purchasing and selling projects were passively conducted. Generally, the loan project of a cooperative includes many loans without pledges that are based on inter-personal trust. In the case of the Cooperative Credit Societies in colonial Korea, however, inter-personal trust did not work sufficiently for two reasons. On the one hand, the Japanese managing directors who were in charge of the credit research of the members exhibited prejudice against the Korean members. On the other hand, the Korean members displayed cynicism or antipathy toward the Cooperative Credit Societies, which they regarded as a subcontractor organization of the colonial ruling power. As a result, the poor Korean members who had few securities for a loan were alienated from the loan project of the Cooperative Credit Societies.