Woori Financial Group to Support Innovative Growth Companies with 6.32 Trillion KRW This Year

Son Tae-seung, Chairman of Woori Financial Group

원본보기 아이콘

[Asia Economy Reporter Kim Hyo-jin] Woori Financial Group has decided to support innovative growth companies with 6.32 trillion KRW this year.

On the 26th, Woori Financial announced that Chairman Sohn Tae-seung recently chaired the group’s 'Innovation Finance Promotion Committee,' attended by CEOs of group companies, to review the progress of innovation finance initiatives and establish support goals based on innovation finance.

Launched last year, the Woori Financial Innovation Finance Promotion Committee consists of four task forces in credit support, credit system improvement, investment support, and fintech (financial technology) support. Centered on Woori Bank, it is preparing and implementing various support measures for innovative growth companies.

In the credit support sector, aiming for 6 trillion KRW this year, 2.533 trillion KRW in technology finance was supplied in the first quarter alone. In particular, secured financing including IP (intellectual property) provided 101 billion KRW over the past three months, achieving more than 50% of the 200 billion KRW target.

In the credit system improvement sector, to activate secured loans in the field, Woori Bank headquarters is conducting pre-collateral evaluations, and the screening department is prioritizing and expediting reviews for companies holding movable assets and IP. This year, they plan to establish unified collateral regulations and processes covering movable assets and IP, and continue improving the corporate credit screening system based on future growth potential such as non-financial information and technological capabilities.

In the investment support sector, 304 billion KRW was invested last year, exceeding the initial target of 220 billion KRW by 38%. This year, the indirect investment target amount, including the Innovation Venture Fund, has been increased by 100 billion KRW to 300 billion KRW, with plans to invest a total of 320 billion KRW including 20 billion KRW in direct investments. So far, 131 companies have applied for direct investment, and once the selection is completed by the end of this month, investments of up to 1 billion KRW per company will be executed.

Despite the contraction of investment activities and increased risks due to global financial market instability caused by COVID-19, Woori Financial’s policy is to further support promising companies in overcoming the Death Valley and growing into unicorn companies.

In the fintech support sector, the Wibee Fintech Lab, focused on early-stage startups, and the Developer Lab for startups with high growth potential will be expanded into the Dino Lab Integrated Center. With the relaunch as an integrated center, collaboration and investment between group business departments and startups will be strengthened.

Three teams selected through the group’s first-ever in-house venture system this year will also be housed in the Dino Lab Integrated Center to interact with startup nurturing companies and create synergy, aiming to spread creative thinking and a spirit of challenge throughout the entire group.

A Woori Financial official said, "Just as the public is overcoming the COVID-19 crisis through mutual trust and cooperation, we will make innovative growth companies partners in Woori Financial Group’s growth," adding, "To actively respond to the post-COVID-19 untact (non-face-to-face) trend, we will expand collaboration and investment targeting innovative startups and turn the crisis into an opportunity together."

As of the end of the first quarter of 2020, Woori Financial Group's innovative finance (loan and investment support) performance / Provided by Woori Financial Group

원본보기 아이콘

© The Asia Business Daily(www.asiae.co.kr). All rights reserved.