NH Nonghyup Financial, Plans to Provide a Total of 13.8 Trillion KRW in Financial Support for the 'K-New Deal'

Digital New Deal 1.2 Trillion, Green New Deal 12 Trillion, Safety Net Reinforcement 0.6 Trillion, etc.
Fund Launched to Promote K-New Deal Participation Boom and Activate Green Industry Investment

[Asia Economy Reporter Kangwook Cho] NH NongHyup Financial Group announced on the 3rd a plan to support a total of 13.8 trillion KRW through loans and investments by 2025 in line with the Korean New Deal policy.

This support plan will be promoted by consolidating the capabilities of all NongHyup Financial Group affiliates, including banks, securities, and asset management non-bank subsidiaries. Specifically, it includes ▲ 1.2 trillion KRW in the digital New Deal sector such as startup fostering and building a big data platform for agriculture, ▲ 12 trillion KRW in the green New Deal sector including rural solar power projects, renewable energy projects, and expansion of eco-friendly smart farm loans, and ▲ 0.6 trillion KRW in the safety net strengthening sector such as distribution of digital devices to information-vulnerable groups.

In the digital New Deal sector, plans include △ infrastructure investment for NongHyup Financial Group’s digital transformation (DT) such as building and advancing a big data platform and establishing a 24/7 non-face-to-face business system, △ investments to create a digital ecosystem such as startup fostering, digital talent development (over 2,300 people by 2025), and building a big data platform for agriculture, and △ innovative digital new business investments such as MyData projects and digital healthcare platform construction.

In the green New Deal sector, plans include △ revitalizing rural solar power projects and fostering eco-friendly companies, △ supporting eco-friendly smart farm households and agro-food companies, and △ investing in renewable energy and establishing an ESG management system.

In the safety net strengthening sector, plans include △ operating products to bridge the digital information gap, △ supporting the distribution of digital devices to information-vulnerable groups, and △ support measures such as agricultural crowdfunding and loans for feed purchase funds for livestock farmers.

In particular, NH NongHyup Financial Group plans to promote the 'Greening of Agriculture' by leveraging its unique capabilities and strengths in agricultural industry finance. A total of 5.5 trillion KRW will be supported by 2025 to eco-friendly smart farm households and eco-friendly distribution and processing companies in the agro-food sector.

Smart farms are advanced automated farms that combine digital technology and agricultural cultivation techniques, representing a convergence of digital and green aspects. NH NongHyup Financial Group launched smart farm loans in 2017 and currently supports about 90 billion KRW annually. It plans to provide an additional total of 0.9 trillion KRW in agricultural-related funds, including smart farm loans, by 2025.

Additionally, it will supply a total of 4.6 trillion KRW in new credit to agro-food companies involved in eco-friendly agricultural product distribution and processing by 2025. Agriculture is a life industry and the foundation of the green New Deal, and its national importance is increasing in the post-COVID-19 era. Therefore, this 'Greening of Agriculture' support plan holds great significance.

NH NongHyup Financial Group already established the 'Green Finance Business Unit' at NongHyup Bank as of the 1st to expand a dedicated organization to promote the greening of agriculture, and plans to further expand related organizations and personnel in the future.

Along with this, NH-Amundi Asset Management, an affiliate of NH NongHyup Financial Group, launched the 'NH-Amundi 100-Year Enterprise Green Korea Fund' on the 3rd, securing initial operating funds of 40 billion KRW from the entire NongHyup Group to promote nationwide participation in the K-New Deal and activate investment in green and environmental industries.

This fund invests by analyzing companies not only on financial factors but also on sustainability from environmental (E), social (S), and governance (G) perspectives. It focuses on environmental investments among ESG factors, and 20% of the management fees will be allocated to a public interest fund to support social contribution activities and public interest projects. The strategy is to continue the excellent performance of the 'Winning Korea' fund, launched last year in response to Japan’s export restrictions, with the 'Green Korea' fund.

Kim Kwang-soo, Chairman of NH NongHyup Financial Group, said regarding this support plan, "The K-New Deal is an effort to build a sustainable economy and society, and NH NongHyup Financial Group’s purpose is to support farmers and rural areas and enhance the value of the agricultural industry, which aligns with the intent of the K-New Deal. We will consolidate the strengths and capabilities unique to NH NongHyup Financial Group to play a significant role in the national paradigm shift."

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