Woori Financial Internalizes Productive and Inclusive Finance Across the Group... KRW 34.7 Trillion Achieved in 1 Year
TECHWORLD ·
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Woori Financial Group said it supplied KRW 34.7 trillion in productive and inclusive finance over the past year based on the 'Future Co-Growth Project.'
Productive finance came to KRW 33.3 trillion and inclusive finance to KRW 1.4 trillion, while the achievement rate against the five-year target was 38.5%.
Woori Financial said that next year it will seek to expand supply, manage the share of small and medium-sized enterprises and regional companies, and push ahead with the write-off of delinquent claims and linkage with employment and welfare.
Woori Financial Group announced last September that it would launch the 'Future Co-Growth Project' and supply KRW 80 trillion in productive and inclusive finance over five years. In June, it added another KRW 10 trillion — KRW 9.4 trillion in productive finance and KRW 600 billion in inclusive finance — and raised its expanded target to KRW 90 trillion.
Woori Financial Group said it delivered KRW 34.7 trillion in productive and inclusive finance over the past year based on the 'Future Co-Growth Project' launched last September. The group said it was directing funding from large corporations to small and medium-sized enterprises, and from the Seoul metropolitan area to regional areas.
Woori Financial Group also highlighted that support for financially vulnerable groups has entered a stabilization phase. As specific examples, it pointed to SaeHuiMang Holls Loan and the write-off of long-term delinquent loan claims.
On the 20th, Woori Financial Group held the 'October Advanced Strategic Industry Financial Council' chaired by Chairman Im Jong-ryong, with the heads of major affiliates in attendance. At the meeting, the group reviewed the one-year results of productive and inclusive finance and shared next year's implementation plan.
The group supplied a total of KRW 34.7 trillion in funding over the year since the project was announced. Of that, KRW 33.3 trillion was productive finance and KRW 1.4 trillion was inclusive finance. As a result, the group achieved 38.5% of its five-year target.
In the project's early phase, funding in the fourth quarter of last year stood at KRW 4.5 trillion, and it rose to KRW 11.5 trillion in the third quarter of this year. The group said the increase showed that productive finance had become embedded across the organization. In the lending segment of productive finance, KRW 27.2 trillion was supplied from January to September this year, exceeding the annual target of KRW 18.4 trillion.
Woori Bank supplied KRW 26.6 trillion in productive finance. Of that, support for small and medium-sized enterprises accounted for KRW 13.4 trillion, and support for regional small and medium-sized enterprises came to KRW 5.1 trillion. In the investment segment, KRW 1.9 trillion was executed from January to September this year.
In the investment segment, affiliates including bank IB, securities, capital and insurance participated in the National Growth Fund. The fund has executed more than KRW 500 billion this year, with investments in the Shinan Uiwui offshore wind project, Samsung Electronics' Pyeongtaek semiconductor facility, and AI semiconductor company Rebellions. Projects with additional commitments completed are worth about KRW 600 billion and are awaiting execution.
The group joint fund managed by Woori Asset Management set this year's target at KRW 200 billion and had executed KRW 177.7 billion by September. The fund's investments cover eight companies, including secondary batteries and mobility. Execution of the group joint fund is revitalizing the market and also speeding up the supply of venture capital.
In addition, Woori Investment & Securities supplied KRW 466.1 billion in venture capital. That amount included KRW 100 billion for the purchase of private bonds issued by a solar power company. Woori Investment & Securities is also expanding its investment destinations into AI, bio and defense.
This month, venture capital investment is scheduled for a non-metropolitan AI center jointly identified by group affiliates. For this investment, Woori Bank will arrange the financing, while Woori Investment & Securities and Woori Financial Capital will provide senior funding.
Woori Asset Management and Woori Asset Trust will also handle asset management and collateral trust. As a result, a single financial structure will be established, from funding to collateral trust. The operator will be able to raise funds stably without having to go through multiple financial institutions individually.
Woori Financial said it viewed the provision of optimal financial solutions based on affiliate cooperation, along with the swift and stable execution of projects, as a model case of the Future Co-Growth Project. It also said it plans to continue expanding such cases.
Woori Financial set its inclusive finance supply target at KRW 3.5 trillion and had executed KRW 2.8 trillion in inclusive finance by September. Woori Bank's SaeHuiMang Holls Loan was reported at KRW 652 billion in support from January to September.
In January, Woori Bank introduced an annual 7% interest rate cap on personal credit loans. As a result, about 90,000 customers benefited, and the total amount of interest relief was KRW 3.7 billion.
Woori Bank launched the 'WooriWON Dream Living Expense Loan' in March, and the amount supported over six months came to KRW 63.7 billion. Reflecting this demand, the bank decided to raise the sales cap in November from KRW 100 billion to KRW 200 billion.
Woori Savings Bank supplied KRW 435.1 billion in policy-backed loans for low-income borrowers, including Sunshine Loan and Saetdol Loan, from January to September. Woori Smile Microfinance Foundation also supplied KRW 12.6 billion during the same period, surpassing its annual target of KRW 12 billion.
The Smile Microfinance Foundation will open new branches in Gimhae, Jeonju, Yangcheon and Incheon Seohae in the second half of this year. As a result, the foundation's nationwide branch network will expand to 12 locations. The expansion is intended to improve accessibility for vulnerable groups.
Three of the new branches will be co-located at Comprehensive Support Centers for Microfinance operated by the Korea Inclusive Finance Agency. At these three locations, financial support, employment linkage and welfare linkage will be provided as a one-stop service.
Woori Bank and Woori Card wrote off about KRW 280 billion in long-term delinquent claims this year. As a result of the write-offs, more than 12,000 people were supported in restoring their credit and making a fresh start.
At the meeting, the participants discussed management directions for next year. For productive finance, they decided to push ahead with expanding the supply scale and managing loan balances by industry, the share of small and medium-sized enterprises, the share of regional companies and dependence on collateral and guarantees, while managing the overall supply structure from multiple angles. For inclusive finance, they decided to push ahead with the write-off of delinquent claims and linkage with employment and welfare to help vulnerable groups make a substantive fresh start. Specific support scale and methods will be finalized later at the 'Advanced Strategic Industry Financial Council.'
Chairman Im Jong-ryong said the group had devoted its efforts over the past year to supplying funds in a timely manner to where they were needed, and asked that, based on that confidence, next year's plans be drawn up to drive structural changes in supply such as the share of small and medium-sized enterprises and regional companies. He added that inclusive finance must be genuine and urged the group to continue expanding inclusive finance that customers can actually feel.
Source: TECHWORLD · Lee Gwang-jae
Original: https://www.epnc.co.kr/news/articleView.html?idxno=408525
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Source: TECHWORLD
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