Private and policy finance funds invested in productive finance will expand to 1,240 trillion won over five years. Private finance, including financial holding companies, securities, and insurance, increased its support from 525 trillion won to 614 trillion won. Policy finance, including the Korea Development Bank (KDB) and Industrial Bank of Korea (IBK), will provide 626 trillion won.
Financial holding companies said on the 21st at the Financial Industry Productive Finance Council held at Government Complex Seoul that they will expand productive finance support to 584 trillion won.
KB Financial plans in the first quarter of this year to arrange financing for the large-scale infrastructure projects of the Sinan Uui offshore wind power project and the Yongin semiconductor cluster development project. Woori Financial Group completed the creation of a 200 billion won group co-investment fund in Dec. last year. Asset management affiliates have created a 520 billion won fund and are operating a productive fund.
Seven large securities firms with equity capital of 4 trillion won or more decided to supply 2.25 trillion won in venture capital over three years. KB Securities, the first in the industry to introduce win-win settlement and participate as a general partner (GP) in the Public Growth Fund, will lead funding for small and midsize corporations and advanced strategic industries. Korea Investment & Securities Co. will gradually expand its KOSDAQ-dedicated unit and research staff to strengthen customized financial support from startup to initial public offering (IPO).
In the insurance sector, 24 life and non-life insurers will provide 3.66 trillion won in support. The Financial Services Commission (FSC) is reviewing regulatory improvements, including adjusting risk weights related to policy funds, infrastructure, venture investment, and mortgage loan in the insurance sector, to ensure smooth support. Hanwha Life Insurance will invest 5 trillion won by 2030 in social infrastructure, data centers, fuel cells, and renewable energy, and will invest 250 billion won in infrastructure.
Korea Development Bank (KDB) will establish the KDB NEXT KOREA program and provide 250 trillion won, or 50 trillion won annually for five years, to strengthen competitiveness in advanced and future strategic industries and to foster regional corporations and key industries. In addition, it plans to provide more than 30 trillion won this year to projects with significant spillover effects within industries. Industrial Bank of Korea (IBK) will push the IBK-style Productive Finance 30-300 Project to provide more than 300 trillion won by 2030.
Kwon Dae-young, vice chair of the Financial Services Commission (FSC), said the Financial Industry Productive Finance Council, which was created by expanding the Productive Finance Communication and Inspection Meeting, will be made regular. Kwon said, "We need to build a management system that can systematically classify, inspect, and share whether the announced and shared plans actually lead to productive finance."