South Korean banks expand lending to strategic industries

Major South Korean banks are shifting their focus toward ‘productive finance’ by expanding credit to strategic industries and corporate sectors.

KB Kookmin Bank reported that its corporate loan balance exceeded 200 trillion won in the first half of the year. The bank saw a net profit of over 2.2 trillion won, supported by a 36.5% increase in fee income. To support national strategic industries, export companies, and new technology firms, the bank has expanded its preferential interest rate program to a total of 10 trillion won. Additionally, the bank is collaborating with the KOSDAQ Association to provide integrated financial support, including investment and capital market services, for listed companies.

Woori Bank has provided 16.3 trillion won in productive finance during the first half of the year. This funding targets nine advanced strategic industries, including artificial intelligence, semiconductors, secondary batteries, bio-technology, and defense. The bank utilizes specialized Biz Prime Centers located near national industrial complexes to provide credit and financial consulting. Its strategy focuses on supporting the entire supply chain, from major corporations to small and medium-sized enterprises (SMEs) specializing in materials, parts, and equipment.