KB Financial, 10 Trillion Won Support for 'Korean New Deal'... Total Investment Reaches 76 Trillion Won

KB Financial, Total Support Increased to KRW 76 Trillion Including Existing KRW 66 Trillion Innovation Finance Fund
KRW 400 Billion for 'Green Smart School' Project, KRW 485 Billion for 'National Safety SOC Digitalization' Project, KRW 505 Billion for 'Green Energy' Project, Total KRW 1.4 Trillion Priority Support
Chairman Yoon Jong-kyu Urges Accelerated Role with Company-wide Efforts in 'Korean New Deal' Projects

[Asia Economy Reporter Minyoung Kim] KB Financial Group will support 10 trillion KRW for 8 out of the 10 representative tasks of the Korean New Deal. Accordingly, KB Financial will provide a total of 76 trillion KRW in support, including the existing 66 trillion KRW for innovative financial support.

On the 3rd, at the ‘1st Korean New Deal Strategy Meeting’ held at the Blue House, KB Financial Group expressed its commitment to actively participate in the K-New Deal project and to do its best as a financial institution. It announced specific investment plans related to the ‘Korean New Deal,’ such as loans and funds, focusing on the social overhead capital (SOC) sector.

On July 23, KB Financial Group held the ‘KB New Deal·Innovative Finance Council’ and selected five key support areas among the 10 representative tasks of the ‘Korean New Deal’ project: ‘Green Smart School,’ ‘National Safety SOC Digitalization,’ ‘Green Remodeling,’ ‘Green Energy,’ and ‘Eco-friendly Future Mobility.’ It also established a support plan of about 9 trillion KRW by 2025.

Subsequently, it set a plan to invest an additional 1 trillion KRW to support projects related to the ‘Digital New Deal’ policy (Data Dam, Intelligent Government, Smart Medical Infrastructure), aiming to provide a total of 10 trillion KRW in support. Through this, KB Financial will support 8 out of the 10 representative tasks.

KB Financial plans to simultaneously promote financial support totaling 76 trillion KRW by adding 10 trillion KRW for the ‘Korean New Deal’ projects to the existing 66 trillion KRW for ‘innovative finance’ support.

Currently, KB Financial is actively reviewing support and investment projects in each area. Regarding the ‘Green Smart School’ project, KB Financial plans to establish a rental-type private investment (BTL) fund called the ‘(tentative name) Living Infrastructure BTL Specialized Private Investment Trust No. 2.’ The fund size will be about 400 billion KRW, managed by KB Asset Management, with participation from KB Kookmin Bank and others.

Regarding the ‘National Safety SOC Digitalization’ project, KB Kookmin Bank plans to support 485 billion KRW for the ‘Seoul-Chuncheon Expressway Differential Compensation Restructuring Project.’ KB Kookmin Bank was recently selected as the preferred negotiator to arrange 4,850 billion KRW, which is 50% of the total project cost of 9,700 billion KRW. Through this project, KB Financial supports the ‘National Safety SOC Digitalization’ project and is closely consulting with related agencies on financing methods such as public offering funds, one of the government’s Korean New Deal funding plans, to create a successful revenue-sharing model with the public.

Regarding the ‘Green Energy’ project, KB Financial plans to initially support 505 billion KRW. Based on its top-tier domestic capabilities accumulated in the renewable energy finance sector, it will establish the ‘KB Renewable Energy Private Special Asset Investment Trust No. 2’ with a scale of about 130 billion KRW to accelerate the ‘Green Energy’ project. Recently, it also succeeded in winning the bid for the ‘Bigeumdo Solar Power Project,’ the largest solar power project in Korea.

The ‘Bigeumdo Solar Power Project’ is a 200 MW solar power project constructed on the abandoned salt farm site in Bigeumdo, Sinan County. With a total project cost of 375 billion KRW, it was a big deal that attracted bids from leading financial companies, but KB Kookmin Bank and KB Securities were finally selected as the preferred negotiators responsible for financial advisory and arrangement.

Yoon Jong-kyu, Chairman of KB Financial Group, said, “To ensure the success of the Korean New Deal project, we must unite the group’s overall capabilities and do our best in our fundamental financial role.” He added, “Let’s discover various business ideas centered on the KB New Deal·Innovative Finance Council and establish concrete execution plans to proceed with speed.”

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