Vice Chairman Lee Eogwon: "We Must Drive a Major Transformation in Advanced Industries"... National Growth Fund Officially Launched (Comprehensive)

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On November 17, Lee Eogwon, Vice Chairman of the Financial Services Commission, attended the inauguration ceremony and business agreement signing for the National Growth Fund Secretariat. He stated, "Not only the scale, but also the support methods and collaboration systems represent a new path that industrial finance has never taken before," adding, "We must radically overhaul the existing mindset and ways of working."

Vice Chairman Lee, who attended the inauguration ceremony and business agreement signing for the National Growth Fund Secretariat held at the Korea Development Bank annex in Seoul, said, "Through the National Growth Fund, which is being called 'the largest fund since the founding of the nation,' we must redirect the flow of capital and gather innovative capabilities to bring about a major transformation in our advanced industries."

He continued, "I ask for the financial sector's continued interest in and support for productive finance," and added, "The government will also help facilitate active investment decisions by improving the risk-weighted asset (RWA) investment burden and providing indemnity support in case of investment failure."

This agreement includes cooperation among the Korea Development Bank and the five major financial holding companies-KB, Shinhan, Hana, Woori, and NongHyup-for the formation and execution of the National Growth Fund. The cooperation will cover information exchange related to advanced strategic industries and the secondment of professional personnel.

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With the official launch of the National Growth Fund scheduled for December 10, the Financial Services Commission has decided to establish a secretariat to oversee investment operations and strengthen cooperation with the five major financial holding companies regarding investments.

The commission is currently collecting investment demand from relevant ministries and advanced industry companies, and is also in the process of forming the "Fund Management Deliberation Committee." Following the amendment of the Korea Development Bank Act, the plan is to execute investments swiftly once the National Growth Fund is officially launched next month.

The total plan for productive finance supply across the financial sector amounts to 526 trillion won. Each financial holding company has already announced plans to contribute 10 trillion won to the National Growth Fund. In addition, the plan includes a total of 73 trillion to 93 trillion won in productive finance supply directions.

However, Vice Chairman Lee pointed out, "The market and the public still maintain a sober assessment," adding, "There is still a perception that financial institutions are making huge profits primarily through easy real estate collateral lending, and that they are not playing a sufficient role in supporting future growth engines."

He further urged, "With a sense of responsibility to build the future of our economy together, I ask you to put your full commitment into ensuring the success of the National Growth Fund and the transformation toward productive finance."

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