Financial Group Reshaping the Game with 'Digital Innovation + Korean New Deal'

Rapid Digital Transformation Amid Drastic Changes in Financial Environment
Leading Korea New Deal with Large-Scale Financial Supply

[Asia Economy Reporter Kim Hyo-jin] Major financial groups are competitively unveiling concrete strategies related to digital innovation and large-scale financial supply plans for the 'Korean New Deal.' This is analyzed as a move to reshape the landscape in response to the rapidly changing environment due to the financial entry of big tech (large information and communication companies), while proactively aligning with government policy directions to reaffirm the significance of existing financial companies across the economy.

According to the financial sector on the 31st, Shinhan Financial plans to incorporate 'digital leadership' into the evaluation of group CEOs and executives' leadership. Shinhan Financial Chairman Cho Yong-byeong announced this policy during the Shinhan Management Forum CEO special lecture held from the 27th to 29th, encouraging, "Leaders must take the lead in setting big and bold innovation goals and boldly take on challenges" for digital innovation.

Woori Financial is conducting an online training program on 'Digital Transformation (DT) and Information Technology (IT) knowledge content' for all employees of the group to accelerate and implement digital innovation. The training content loaded on the online platform is composed of topics aligned with the recent emphasis on fintech (financial technology) and digital financial environments, such as the Fourth Industrial Revolution, DT and IT trends, DT strategies, and artificial intelligence (AI). Woori Financial Chairman Sohn Tae-seung serves as the chairman of the 'Digital Innovation Committee,' leading digital innovation tasks within the group. Woori Financial also plans to collaborate with KT to discover new businesses that combine finance and information and communication technology (ICT).

Hana Financial is providing digital specialization education, including basic coding, to all employees. KB Financial is conducting various digital experiments, such as the bank branch 'KB Insight,' operated solely by IT professionals. NH Nonghyup Financial strengthened its digitalization foundation by recruiting Lee Sang-rae, former Samsung SDS executive director, as the head of the bank's digital division earlier this month.

"Driving the New Deal through loans and investments... The role of finance remains significant"

Financial groups also plan to pour several trillion to tens of trillions of won into the 'Korean New Deal' sector over the mid to long term. Woori Financial plans to support a total of 10 trillion won in loans and investments over the next five years, divided into ▲Digital New Deal sector (3.3 trillion won) ▲Green New Deal sector (4.5 trillion won) ▲Safety net reinforcement sector (2.2 trillion won).

Hana Financial, operating the 'Korean New Deal Financial Project,' plans to invest a total of 10 trillion won focusing on the Digital New Deal and Green New Deal. Based on this, it aims to expand support for the materials, parts, and equipment industry and smart industrial complexes, and significantly strengthen support for 5G facility investments and data centers. Hana Financial signed a business agreement with Doosan Group, which focuses on green energy businesses such as wind power and hydrogen fuel cells, to provide efficient and systematic support for the Green New Deal sector.

KB Financial plans to invest 9 trillion won by 2025 in green smart schools and the digitalization of national safety social overhead capital (SOC) infrastructure. To this end, KB Financial will expand the KB Innovation Finance Council into the KB New Deal and Innovation Finance Council. Shinhan Financial decided to concentrate group capabilities on the 'Shinhan N.E.O. Project,' which it independently promotes with the goal of a 'Financial New Deal.' Through this project, Shinhan Financial plans to invest 85 trillion won in loans and investments related to innovative growth over five years.

A financial sector official said, "The future management direction of financial groups has been completely reset around digital and the New Deal," adding, "Considering the early part of this year when the focus was on global business expansion and aggressive mergers and acquisitions (M&A), it is striking how a completely different environment has been established in just half a year."

Regarding large-scale financial support plans for the Korean New Deal, a senior official from a financial group said, "The inherent socio-economic roles and responsibilities of financial companies, which new players like big tech and fintech companies find difficult to handle, remain significant," and predicted, "As the economic structure becomes increasingly diversified and the need for convergence between different fields grows, these roles may become even heavier in the future."

This content was produced with the assistance of AI translation services.