Korea Development Bank (KDB) has taken on significant responsibilities such as fostering advanced strategic businesses and supporting corporations harmed by tariffs in the United States, and it has initiated additional capital expansion more than a month later. The bank is expected to accelerate future capital increases as its legal capital increases by 15 trillion won due to the amendment of the Korea Development Bank Act.
According to the financial sector on the 3rd, the bank held an extraordinary shareholders' meeting on the 1st and approved a capital increase of 89.97 billion won. The new shares will be issued at 5,000 won each, totaling 17,994,000 shares.
This marks the sixth capital expansion this year. All newly issued shares from this capital increase will be allocated to the major shareholder, the government.
The bank plans to use the funds secured from the capital increase to support advanced industries and to provide low-interest loans to corporations harmed by tariffs in the U.S. The bank will launch the 'Advanced Strategic Industry Fund' at a scale of 50 trillion won by the end of this year, fostering industries such as artificial intelligence (AI) and semiconductors. The Lee Jae-myung government plans to structure this fund as a master fund and attract investments from private financial institutions and pension funds to establish a 'National Growth Fund' exceeding 100 trillion won.
The bank also decided to support low-interest loans for corporations harmed by tariffs in the U.S. Medium-sized enterprises can receive low-interest loans up to 50 billion won, while small businesses can receive up to 30 billion won.
The capital expansion timeline for the bank is accelerating. The bank has conducted six capital increases, starting with 65 billion won in February, 155.5 billion won in March, 388.2 billion won at the end of May, 111 billion won at the end of June, and 94.5 billion won in July. Including this capital increase, a total of 900 billion won has been raised this year alone.
Recently, both ruling and opposition parties processed a bill to raise the bank's authorized capital from the existing 30 trillion won to 45 trillion won. Currently, the bank's paid-in capital is approximately 27.22 trillion won, already exceeding 90% of the statutory capital.