One Step Beyond 65 Trillion? ... Financial Groups Meeting Moon Focused on New Deal Blueprint

5 Major Financial Groups Already Plan 65 Trillion Won New Deal Financial Supply
Expansion Possible Following Business Direction After Blue House Strategy Meeting

[Asia Economy Reporter Kim Hyo-jin] This week, attention is focused on the financial supply plans of financial groups that will discuss support strategies for the 'Korean New Deal' with President Moon Jae-in. With support plans related to the New Deal already exceeding 65 trillion won centered on major financial groups, there is speculation that the scale could increase further if the direction of related projects is concretized starting from this discussion.

According to the financial sector on the 1st, the heads of the five major financial groups?Cho Yong-byeong, Chairman of Shinhan Financial Group; Yoon Jong-kyu, Chairman of KB Financial Group; Kim Jung-tae, Chairman of Hana Financial Group; Sohn Tae-seung, Chairman of Woori Financial Group; and Kim Kwang-soo, Chairman of NH Nonghyup Financial Group?will attend the '1st Korean New Deal Strategy Meeting' hosted by President Moon Jae-in at the Blue House on the 3rd. They will introduce the recently established New Deal support plans and discuss specific strategies.

Shinhan Financial plans to allocate 28.5 trillion won in loans and investments to the New Deal sector over five years until 2025, based on the 'Shinhan N.E.O (New Economy Opportunity) Project,' which significantly shifts the business focus to the New Deal and innovation growth sectors. Hana Financial and Woori Financial have also recently decided to supply 10 trillion won each in loans and investments over five years, based on internal projects and dedicated organizations such as the 'Korean New Deal Finance Project' and the 'New Deal Financial Support Committee,' respectively.

KB Financial plans to supply 9 trillion won over five years centered on the 'KB New Deal and Innovation Finance Council,' while NH Nonghyup Financial intends to provide 8 trillion won over five years through units like the 'Green Finance Business Group' in fields such as renewable energy and smart farms. So far, the total scale has reached 65.5 trillion won.

President Moon is expected to encourage active participation from the financial sector in initiatives such as the 'New Deal Fund' at this strategy meeting. The government and ruling party are promoting the establishment of the New Deal Fund to raise about 10% of the resources needed for the New Deal projects, which will total 160 trillion won by 2025.

The financial sector generally agrees on the necessity and justification of the Korean New Deal projects. An executive at the vice president level of Financial Group A explained, "In a situation where traditional operations centered on interest income have limitations, the alternative would be digital innovation and new business areas based on it," adding, "If specific projects take shape and proceed in earnest, investments or loans could increase depending on the assessment of business viability."

Voices Cautioning Against 'Government Control and Pressure'
"Creativity and Autonomy Must Be Maximally Guaranteed"

Some in the financial sector express concerns about such moves by the Blue House and government. This is because the financial sector is already bearing a considerable role and pressure related to various financial supports for COVID-19, including extensions of loan maturities and additional interest payment deferrals.

A financial sector official said, "We must be cautious about the possibility that the New Deal promotion process could be distorted into a form of 'financial mobilization' based on government control," and pointed out, "The government must not neglect efforts to maximally guarantee private sector creativity and autonomy and to prevent controversies such as 'government-controlled funds' surrounding the New Deal Fund."

Meanwhile, the strategy meeting will see large participation both online and offline from key figures in finance and government, including the chairpersons of the five major financial holding companies, chairpersons of DGB (Daegu Bank), BNK (Busan Bank), JB (Jeonbuk Bank), Korea Investment & Securities, Meritz Financial Group, heads of financial associations, Deputy Prime Minister and Minister of Economy and Finance Hong Nam-ki, and Financial Services Commission Chairman Eun Sung-soo.

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