KB Financial Group and Shinhan Financial Group announced on Sunday that each will invest 110 trillion won ($75 billion) over the next five years to support productive inclusive finance. These investments aim to stimulate economic growth while expanding access to financial services for underserved communities. Productive inclusive finance has become central to South Korea’s long-term economic strategy.
Together with Hana Financial, Woori Financial, and NongHyup Financial, the five major banks now plan to invest a total of 508 trillion won. This combined effort reflects the banking sector’s commitment to fostering strategic industries and promoting financial inclusion.
KB Financial will allocate 10 trillion won to the Public Growth Fund, a 150 trillion-won initiative supporting artificial intelligence and advanced technology. The bank will lend 68 trillion won to corporations and invest 15 trillion won directly in strategic projects. It will dedicate 17 trillion won to inclusive finance, helping microbusiness owners, self-employed individuals, and financially underserved communities.
Shinhan Financial will also invest 10 trillion won in the Public Growth Fund and 10-15 trillion won in direct investments. Another 72-75 trillion won will fund corporate loans. The bank will dedicate 12-17 trillion won to inclusive finance, offering lower-interest loans to small businesses. It will also support regional infrastructure projects, including wastewater treatment and residential improvements.
Officials emphasized that productive inclusive finance will drive innovation and balanced economic development. A KB Financial representative said the bank aims to “support strategic industries and create drivers for the nation’s future economy.” A Shinhan Financial official added the initiative will help “build a virtuous financial cycle supporting innovation and regional development.”
Both banks have formed dedicated teams to manage productive inclusive finance programs and coordinate across their affiliates. Experts noted that this approach will maximize impact and help meet national growth targets.
As South Korea focuses on strengthening industries and expanding financial access, productive inclusive finance will shape the nation’s economic and social landscape over the next five years.
