Chairperson Lee Eog-weon said on the 5th that starting with the first megaproject of the Public Growth Fund, support for cutting-edge industries will be ramped up in earnest by concentrating policy finance and public guarantees on advanced and promising sectors.
Lee said at a National Policy Committee briefing that this year, the aim is to accelerate the three major transformations in financial reform to deliver results that people can feel in earnest, and stated accordingly.
The Public Growth Fund is a project in which the government and the private sector raise 150 trillion won to invest in artificial intelligence (AI), semiconductors, and renewable energy. The Financial Services Commission selected the Shinan-Ui offshore wind farm project in South Jeolla as the first investment destination of the Public Growth Fund.
The Financial Services Commission (FSC) decided to expand policy finance and private finance for regions to spread productive finance. Regional policy finance will be increased to 125 trillion won per year by 2028. It will also establish the Southeast Region Investment Corporation to support development of the Arctic shipping route and regional industries.
Supply of policy climate finance, currently at 60 trillion won per year, will be expanded over five years to more than 80 trillion won per year.
For financially underserved groups such as young people and those requiring social consideration, the government will introduce low-interest policy finance products for low-income people, including a Smile Finance youth product and a livelihood fund product for vulnerable groups. A credit buildup system will also be prepared so that those who faithfully repay policy finance for low-income people can settle into the formal financial sector through credit growth. If all illegal private loans are repaid, the use of Smile Finance (for vulnerable groups) will be supported, and upon full repayment or faithful repayment of Smile Finance, use of the Stepping-stone Loan (bank-sector unsecured loan) will be supported.
Lee said the government will create a dense financial ecosystem by offering tailored asset-building products for young and older generations, providing community-embedded comprehensive support, and revitalizing bank agency services.
The Financial Services Commission (FSC) will maintain a consistent management stance to stabilize household debt and closely examine risk factors such as real estate project financing (PF). It also plans to support the rollout of limited recourse loans. These loans limit the borrower's repayment responsibility to the collateral, such as dwellings.
Measures to eradicate stock price manipulation will also be prepared, including preventing insider unfair transactions and strengthening disclosures. It will also push financial consumer protection measures, such as cracking down on illegal private lending, voice phishing, and money laundering.
Lee said the government will continue to identify and expand financial policies that people can feel in their daily lives, such as practical insurance products including dementia insurance and insurance linked with local governments, MyData AI agents, and innovations in electronic payment services.