Lee Hyo-jin covers the Bank of Korea, the banking industry and broader financial news. Her previous beats include foreign affairs, North Korea and general reporting on Korean society.
Woori Financial steps up productive finance with $6.5 bil. boost
Woori Financial Group Chairman Yim Jong-yong, right, speaks during a meeting at the group's headquarters in Seoul, Friday. Courtesy of Woori Financial Group
By Lee Hyo-jin
Woori Financial Group will expand its productive and inclusive finance programs by a combined 10 trillion won ($6.5 billion), stepping up support for strategic industries while broadening assistance for vulnerable borrowers, the company said Sunday.
The decision was made during a Friday meeting of senior executives from Woori's affiliates led by Chairman Yim Jong-yong, where participants reviewed progress under the group's productive and inclusive finance initiative, dubbed the Future Shared Growth Project.
The financial group said it will add 9.4 trillion won in productive financing and 600 billion won in inclusive finance, bringing the project's total size to 90 trillion won.
Most of the increase will be directed toward productive financing.
Woori said it plans to provide the additional 9.4 trillion won over the next two years, including 5.7 trillion won this year and 3.7 trillion won next year, to support strategic industries, exporters and other sectors viewed as key drivers of future growth.
The group also plans to significantly expand its inclusive finance programs this year.
It will increase support to 3.5 trillion won from an initial target of 1.2 trillion won, focusing on debt relief and lending programs for low-credit borrowers and small business owners.
As part of the effort, Woori plans to write off about 280 billion won in long-term delinquent debt to help financially vulnerable borrowers return to normal economic activity.
The move follows earlier measures by Woori Bank, which waived overdue interest on about 40 billion won in long-term delinquent debt in March. The bank plans to write off an additional 120 billion won in such debt in the second half of the year.
The group said it will provide 1.1 trillion won in loans for borrowers with mid-range credit profiles through its banking, card, capital and savings bank units. Additional support measures include emergency living expense loans, refinancing programs and loans for small business owners.
"Productive finance should ensure that funding reaches strategic industries and export-oriented companies in a timely manner, while inclusive finance should provide practical support for low-credit borrowers and financially vulnerable groups," Yim said.