KB Financial Group has decided to pour 110 trillion won into productive and inclusive finance to foster strategic industries that will lead the national economy and create ecosystems. In particular, KB Financial will actively support regional growth projects for balanced national development.
KB Financial announced on Nov. 9 that it will allocate 93 trillion won to productive finance and 17 trillion won to inclusive finance over the next five years. To implement this plan, the group will operate the KB Financial Group Productive Finance Council. KB Financial explained, “This is to support cutting-edge industries that will lead Korea’s future economy based on industry-leading capital strength and financing capabilities.”
By category, the 93 trillion won in productive finance consists of 25 trillion won in investment finance and 68 trillion won in strategic industry loans. Investment finance will be pursued through 10 trillion won from the National Growth Fund and 15 trillion won in group’s own investments. The National Growth Fund support funds are scheduled to be provided to domestic artificial intelligence (AI), semiconductors, bio, robots, secondary batteries, future vehicles, defense industry, and others. KB Financial plans to contribute to the early performance creation and successful establishment of the National Growth Fund through mega deal discovery and preemptive financial support based on existing investment finance experience. The 15 trillion won self-fund will see subsidiaries KB Asset Management, KB Securities, and KB Invest form funds to engage in venture capital and infrastructure/venture investments. The 68 trillion won loan will also be provided to cutting-edge strategic industries and promising growth companies. Previously, KB Financial announced that it would arrange financing for the Yongin Semiconductor Cluster with a total project scale of 3.3 trillion won together with Korea Development Bank, and KB Securities disclosed plans to participate in the government’s win-win settlement loan market for the first time in the industry.
KB will also focus on discovering regional growth projects that align with the government’s “5-Hub 3-Special Strategy” for balanced national development. The strategy aims to overcome the single-hub structure centered on the metropolitan area by developing the nation around five major super-regional zones (metropolitan area, southeastern region, Daegu-Gyeongbuk region, central region, Honam region) and three special autonomous provinces (Jeju, Gangwon, Jeonbuk). KB plans to expand investment in region-customized strategic industries and social overhead capital (SOC) complex projects such as infrastructure linked to core industries by region, renewable energy, data/AI centers, and logistics/ports.
KB Financial is discussing detailed implementation plans for productive finance and periodically reviewing performance through the Group Productive Finance Council established in September. KB Kookmin Bank, a subsidiary, is considering establishing a dedicated organization to perform productive finance-centered corporate loan expansion, company discovery, and growth support. Last month, it also created a new dedicated review department, the Advanced Strategic Industry Review Unit. KB Securities reorganized its organization to strengthen future industry research, and KB Asset Management also established the Advanced Strategic Industry Management Office.
Additionally, KB plans to support the recovery and asset formation of low-income vulnerable groups, small business owners, and self-employed individuals through 17 trillion won in inclusive finance. Debt support programs are also being prepared.
Source: Businesskorea