KB Financial "Over 3.2 Trillion Won Financial Support for K-New Deal by Year-End"

Creation of the First 'Policy-type New Deal Infrastructure Fund'

[Asia Economy Reporter Park Sun-mi] KB Financial Group announced on the 12th that it held the ‘2021 1st KB New Deal·Innovative Finance Council,’ composed of key executives from major affiliates including Chairman Yoon Jong-kyu and KB Kookmin Bank President Heo In.

To participate in the Korean New Deal, KB Financial has expanded the KB Innovative Finance Council to the KB New Deal·Innovative Finance Council since July last year and is promoting a total of KRW 76 trillion in financial support, including KRW 10 trillion for the Korean New Deal by 2025 and KRW 66 trillion for innovative finance by 2023.

At this meeting, the focus was on reviewing the current status of financial support by each affiliate, which is being actively promoted this year for the successful implementation of the Korean New Deal, and discussing future plans.

KB Financial’s Korean New Deal support target for this year is KRW 3.2 trillion. As of the end of March, it achieved KRW 2.2 trillion in results, recording a 68% achievement rate against the target, including KRW 175.1 billion in financial support for the Seokmun National Industrial Complex collective energy project (KB Kookmin Bank) and KRW 280 billion acquisition financing for Koentec and Saehan Environment to support resource recycling companies (KB Securities).

Last year, KB Financial secured the largest-scale financial lead roles in the three major renewable energy sectors?solar power, wind power, and fuel cells?including the Saemangeum Onshore Solar Power Zone 3 Project, Hwasun Geumseongsan Wind Power Project, and Godeok Fuel Cell Power Project. This year, it has consecutively secured projects worth a total of KRW 500 billion. KB Asset Management was also recognized for its excellent track record and asset management capabilities in the renewable energy sector and was selected as the entrusted operator of the policy-type New Deal fund in February. KB Financial plans to contribute to the activation of the first policy-type New Deal fund by forming and operating the fund through group-level support, including active investment participation by affiliates.

Meanwhile, KB Financial stated that it is making various efforts for innovative finance, including strengthening loan support for innovative companies, expanding investment in innovative growth, supporting startups and job creation, fostering new businesses, and innovating financial linkage platforms. Major initiatives include expanding technology finance and collateral loans secured by movable property and IP, consulting for small business owners and self-employed individuals, and activating KB Bridge (policy fund platform), achieving 32% of the target so far.

Chairman Yoon Jong-kyu said, “The Korean New Deal is a significant project for financial companies in terms of finding new opportunities in the new normal era. We will focus the group’s capabilities on New Deal projects, including renewable energy, and take the lead in creating social value linked to ESG (environmental, social, and governance) management.”

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