Top 5 financial groups to provide $68 bil. in funding for tariff-hit firms through 2026

Financial Services Commission Vice Chairman Kwon Dae-young, right, speaks during a meeting at Government Complex Seoul, Wednesday. Yonhap

By Lee Kyung-min

• Published Sep 3, 2025 2:55 PM KST

The country’s top five financial holding groups will provide 95 trillion won ($68 billion) for businesses hit by the Trump administration’s tariff policies, mostly in the form of low interest rate loans, assistance in exports and promotion of innovation-led growth, industry officials said Wednesday.

The collective move was prompted by continued downside risks from the U.S. tariffs, despite recent trade negotiations. Korea managed to negotiate the blanket tariff to 15 percent on key industrial goods, down from as high as 25 percent. However, more than 400 items, including steel and aluminum, are subject to levies of up to 50 percent.

According to the Financial Services Commission (FSC), the country’s top five financial holding groups — KB, Shinhan, Hana, Woori and NH NongHyup — attended a meeting presided over by FSC vice chairman Kwon Dae-young.

It was organized to outline a comprehensive financial assistance package to help manufacturers strengthen their fundamentals and weather external shocks.

Also in attendance were state-run entities including Korea Development Bank, Export-Import Bank of Korea and Korea Asset Management Corp. They will provide a financial assistance package of 172 trillion won, raising the total to 267 trillion won through next year.

KB Financial Group is offering lower interest rates to small and medium-sized enterprises (SMEs) in manufacturing and small partner firms that supply parts to Hyundai Motor and Kia, the country’s automobile giants.

Shinhan Financial Group is focusing on expanding financing opportunities for innovation-driven businesses. It will introduce financial products for goods manufacturers and technology developers in national strategic industries that have offices and facilities in the government-designated industrial complex.

Hana Financial Group has rolled out a program to assist automakers in strengthening their competitive edge in exports, while Woori Financial Group is prioritizing liquidity support and lowering financing costs for exporters.

NH NongHyup Financial Group is expanding primary collateralized bond obligation programs. This structured finance instrument used in Korea helps SMEs raise funds by securitizing corporate bonds.

Meanwhile, the 172 trillion won in assistance from state-run financial entities is designed to help firms with short-term emergency operations (36.3 trillion won), export diversification (33.3 trillion won), industrial upgrades (91.5 trillion won) and corporate restructuring (11 trillion won).

Kwon stressed that the financing efforts will help businesses move beyond short-term survival.

“We must offer more than lifelines,” he said during the meeting. “We must provide a solid foundation for new growth. Our industries will weather this time of crisis to strengthen their global competitiveness.”