South Korea FSC raises productive finance target to 1,560 trillion won

South Korea’s Financial Services Commission (FSC) has increased its five-year target for productive finance supply to 1,560 trillion won, combining private and policy finance sectors. This target is an increase from the previous 1,250 trillion won goal.

To encourage investment in high-tech, innovative, and regional enterprises, the FSC plans to expand immunity measures. These measures will protect financial institution employees from liability or personnel disadvantages for losses incurred during productive finance activities, provided there was no intentional misconduct or gross negligence.

As of July, the financial sector has supplied 272.3 trillion won in productive finance. Major institutions are integrating these goals into their operations: Shinhan Financial Group reported that 79% of its corporate loan growth was related to productive finance, while Woori Financial Group has already exceeded its annual supply target. Other participants, including iM Financial Group, Kiwoom Securities, and Samsung Securities, are also implementing dedicated departments and linking performance to Key Performance Indicators (KPIs).

To ensure transparency, financial companies will publish a ‘Productive Finance White Paper’ in December and an annual report in May to disclose their progress and specific case studies.