Korea Development Bank (KDB) and Industrial Bank of Korea (IBK) will inject 250 trillion won and 300 trillion won, respectively, over the next five years for productive finance. KDB will supply funding to the advanced industry and infrastructure institutional sector, while IBK will supply funding to the small and midsize businesses, small merchants, and the venture and startup institutional sector.
At the Financial Services Commission public institutions' briefing held on the 13th at Government Complex Seoul, KDB Chair Park Sang-jin said, "To actively support the government's policy goals and a major leap forward in the economy and industry, we will supply 250 trillion won over five years."
Specifically, the plan is to invest ▲ 25 trillion won to support the Public Growth Fund ▲ 100 trillion won in loans and funds for the advanced strategic industry institutional sector ▲ 75 trillion won in special products favoring regions ▲ 50 trillion won for a green energy transition. Park said, "KDB has not invested in corporations after their initial public offering (IPO), but going forward, even after an IPO there can unexpectedly be corporations that pass through the valley of death, so I am thinking about activating and pushing investment."
IBK will also provide more than 300 trillion won over the five years through 2030. First, it will supply a total of 250 trillion won to small and midsize businesses and small merchants and invest 20 trillion won in the venture, investment, and infrastructure institutional sector. In addition, it said it will invest an additional 3.78 trillion won in the productive finance institutional sector by supporting vulnerable groups and leveraging subsidiaries such as IBK Capital.
Korea Credit Guarantee Fund (KODIT) also decided to expand this year's total guarantee target to 76.5 trillion won, up 900 billion won from last year's plan. The guarantee supply target was set at 68.3 trillion won, an increase of 3.3 trillion won from the previous year. KODIT Chair Choi Won-mok said, "We will establish a 2 trillion won special guarantee for the artificial intelligence (AI) advanced industry and introduce a deep-tech customized guarantee program."
Lee Eog-weon, chair of the Financial Services Commission, who presided over the briefing, said, "There will be many areas of overlap and collaboration in the work among KDB, IBK, and KODIT," and proposed, "How about the three institutions create a regular consultative body to explore ways to develop together?"