South Korean financial groups provide 16 trillion won in inclusive finance

South Korea’s five major financial groups have provided a total of 16.01 trillion won in inclusive finance as of late September. This surge in funding comes as the Financial Services Commission prepares to implement a comprehensive evaluation system to assess banks on governance, fund supply, debt restructuring, social consideration, and non-financial support.

Individual contributions include 3.5 trillion won from KB Financial, 3.47 trillion won from Shinhan Financial, 3.1 trillion won from Hana Financial, 3.09 trillion won from NH Nonghyup Financial, and 2.83 trillion won from Woori Financial. Shinhan Financial has already exceeded its annual target, while Hana Financial has reached 97% of its goal.

In response to the upcoming regulatory evaluation, these institutions are restructuring their organizations. NH Nonghyup Financial plans to establish a dedicated inclusive finance department and appoint a Chief Inclusive Finance Officer (CIFO). Hana Financial has already appointed a CIFO, and Shinhan Financial has established a dedicated committee and secretariat. Under the new evaluation system, banks receiving high ratings may see reductions in contributions to the Inclusive Finance Agency, while those with poor ratings may face increased burdens.