93 trillion won in productive finance by 2030… 17 trillion won in inclusive finance
Establishing dedicated organizations for each affiliate… Reducing real estate finance organization
KB Financial Group plans to invest 110 trillion won over the next five years to transition to productive finance and expand inclusive finance. Out of this, 10 trillion won will be invested in the National Growth Fund promoted by the government. Additionally, they plan to pursue a 15 trillion won productive finance fund and venture investments.
[Image Description: The headquarters building of KB Financial Group.]
KB Financial announced on the 9th that it is implementing this plan to support the nurturing of strategic industries and the establishment of an ecosystem that will lead the future national economy. With a sense of duty that redirecting capital to productive areas is the fundamental role of finance, KB Financial launched the ‘KB Financial Group Productive Finance Council’ last September and has been preparing detailed execution plans.
KB Financial has decided to allocate a total of 110 trillion won over the next five years by 2030, divided into productive finance (93 trillion won) and inclusive finance (17 trillion won).
Productive finance consists of 10 trillion won for the National Growth Fund, 15 trillion won for the group’s own investment, and 68 trillion won for business loans (strategic industry financing). To support the early achievement and successful settlement of the National Growth Fund, they will invest 10 trillion won and actively engage in mega-deal discovery and proactive financial support. Additionally, through a 15 trillion won group self-investment, they aim to establish a productive finance fund centered on asset management, securities, and investments, supply adventure capital through securities, and invest in infrastructure and venture investments for affiliates.
In particular, they will actively pursue regional growth projects that align with the ‘5 regions, 3 special areas’ (a national growth strategy reorganizing the nation into 5 major metropolitan areas and 3 special self-governing provinces: Jeju, Gangwon, and Jeonbuk) for balanced national development. They plan to expand investments in regional customized strategic industries and social infrastructure projects related to key industries, renewable energy, data & AI centers, logistics, and ports.
The 17 trillion won for inclusive finance will support growth and reintegration of low-income and vulnerable groups and small business owners, with various financial support and debt-support programs aimed at assisting asset formation.
Meetings involving 21 executives, including subsidiary presidents, are held regularly to discuss execution plans and implementation direction and to monitor performance. To enhance execution speed, dedicated organizations will be established for each affiliate. For example, KB Kookmin Bank set up a dedicated review department for advanced strategic industries last month, and they are considering establishing an overarching organization focused on expanding business loans centered on productive finance and supporting corporate discovery and growth. The securities sector has reorganized its future industry research team, and asset management has established an advanced strategic industry management office.
They plan to expand loan support from the perspective of fostering national industries, aligning with the government’s policy of transitioning to ‘productive finance’. They are considering reducing the real estate finance sales organization and expanding the corporate and infrastructure finance sales organization.
A KB Financial representative stated, “We will actively participate in government-led productive finance support to ensure that finance plays its essential role in leading sustainable economic growth,” and added, “We will continue to spearhead inclusive finance support to aid the growth and recovery of small business owners and vulnerable groups, ensuring that the nation grows together.”