5 Major Financial Groups Provide Tens of Trillions Support for 'Korean New Deal'... Comprehensive Loans and Investments

Starting Point of the Blue House Meeting Unanimously "Full Support"
Increased Speed... "Implementation from Next Month"

President Moon Jae-in is presiding over the 1st Korean New Deal Strategy Meeting at the Blue House on the morning of the 3rd. (Photo by Yonhap News)

[Asia Economy Reporter Kim Hyo-jin] Major financial groups reiterated their commitment to large-scale financial support and decided to accelerate the pace of support, marking the 'Korean New Deal' strategy meeting with President Moon Jae-in on the 3rd as a turning point.

KB Financial plans to support 10 trillion KRW by 2025 for 8 out of the 10 representative tasks of the Korean New Deal. Adding the existing 66 trillion KRW in innovative financial support, KB Financial will provide a total of 76 trillion KRW in support.

In July, KB Financial held the 'KB New Deal & Innovation Finance Council' and selected five key support areas among the 10 representative tasks of the Korean New Deal project: 'Green Smart School,' 'Digitalization of National Safety SOC,' 'Green Remodeling,' 'Green Energy,' and 'Eco-friendly Future Mobility.'

Hana Financial will provide a total of 60 trillion KRW in financial support to back the success of the Korean New Deal aimed at overcoming the COVID-19 crisis and revitalizing the economy.

Among this, Hana Financial plans to invest 10 trillion KRW in Korean New Deal projects such as the 'Digital New Deal' and 'Green New Deal.' In addition to loan support from its main affiliate Hana Bank, it will focus its financial support capabilities on direct and indirect investments by creating New Deal-related funds through affiliates such as Hana Financial Investment, Hana Alternative Asset Management, and Hana Ventures.

Diversified Support by Sector Including Digital and Green
Policy Finance Joins with 100 Trillion KRW Support

Woori Financial Group also plans to provide about 10 trillion KRW in New Deal-related financial support and will launch a non-face-to-face ultra-simple credit loan for small business owners in collaboration with Dino Lab, the group’s startup incubation program, in October.

Furthermore, to respond to trends for SMEs and small business owners, Woori Financial will expand customized loan support through the use of policy funds and contributions to guarantee institutions, and promote support in non-financial sectors such as entry into 'Wibee Market,' an online mall operated by Woori Card, and providing location and competition analysis using card sales big data to strengthen online sales capabilities.

Woori Financial will also expand green finance support linked with policy finance, guarantee institutions, and local governments to foster the renewable energy industrial ecosystem and will launch specialized products.

NH Nonghyup Financial is preparing New Deal support totaling 13.8 trillion KRW through loans and investments. This support plan will be promoted by consolidating the capabilities of all Nonghyup Financial affiliates, including banks, securities, and asset management subsidiaries.

Specifically, it includes ▲1.2 trillion KRW for digital New Deal sectors such as startup incubation and agricultural big data platform construction ▲12 trillion KRW for green New Deal sectors including rural solar power projects, renewable energy projects, and expansion of eco-friendly smart farm loans ▲600 billion KRW for safety net strengthening sectors such as distribution of digital devices to information-vulnerable groups.

Shinhan Financial plans to invest 28.5 trillion KRW in loans and investments in the New Deal sector based on the 'Shinhan N.E.O (New Economy Opportunity) Project,' which significantly shifts the business focus to New Deal and innovative growth sectors. Major investment areas include smart cities, smart grid industrial complexes, and renewable energy.

Hong Nam-ki, Deputy Prime Minister and Minister of Economy and Finance (right), and Eun Sung-soo, Chairman of the Financial Services Commission, are announcing the 'Korean New Deal Financial Support Plan' at the briefing room of the Government Seoul Office Building on the 3rd. / Photo by Moon Ho-nam munonam@

Meanwhile, the government announced a New Deal finance activation support plan, including policy financial institutions investing about 100 trillion KRW.

The government will simultaneously promote a significant expansion of funding support not only for New Deal projects and infrastructure but also for upstream and downstream companies and industries related to them. Accordingly, policy financial institutions such as KDB Industrial Bank plan to raise the proportion of funds supplied to the New Deal sector from about 8% last year to around 12% by the end of 2025. The intention is to lead the role of venture capital through active investment in New Deal infrastructure.

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