From the Draft Fund to the New Deal Fund... KDB Union Says "Only Whipping, No Support"

[Asia Economy Reporter Jo Gang-wook] Employees of the Korea Development Bank (KDB) who are responsible for the New Deal Fund operations, following the Industrial Stabilization Fund, are voicing their dissatisfaction.

On the 10th, according to the financial sector, the Korea Development Bank branch of the National Financial Industry Labor Union issued a statement the previous day condemning "the government's unilateral announcement of the New Deal Fund support plan and the shifting of burdens onto policy financial institutions."

The New Deal Fund, to be established with a scale of 20 trillion won, will have 7 trillion won invested by the government and policy financial institutions over five years, with the remainder raised from the private sector. To encourage private investment, the government has assigned policy financial institutions such as KDB to make subordinated investments and bear investment risks, meaning that if the investment products incur losses, the government and KDB will have to absorb them.

The KDB labor union stated, "The policy-type New Deal Fund plans to raise 20 trillion won (4 trillion won from policy financial institutions including KDB and 3 trillion won from the treasury), making KDB a party responsible for loss bearing," and emphasized, "Losses arising from the New Deal Fund should be excluded from management evaluations, and active capital increases and indemnification for executives and employees to cover losses must be guaranteed."

Earlier in April, the union also issued a statement criticizing the government's announcement of the Industrial Stabilization Fund plan. Since its launch, the fund has remained idle for over three months without any companies applying for support.

The KDB labor union said, "The government should not just unilaterally set grand plans and whip policy financial institutions but must provide sufficient support including capital increases and workforce expansion."

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