Woori to inject 6.3 trillion won into innovative startups this year

By Kim Bo-eun

Son Tae-seung

Woori Financial Group said Sunday it will inject a total of 6.3 trillion won into promising startups this year in a bid to foster the country's innovative growth.

The group also decided to introduce a new corporate credit review system with more emphasis on firms' growth potential over the size of assets they own.

The plan was discussed at a meeting of the group's committee on innovative finance. Woori Financial Group Chairman Son Tae-seung heads the committee comprised of CEOs of the group's affiliates.

The committee was drawn up to provide loans and investments for startups, including fintech firms. It also seeks to improve the existing system for loans.

Woori Financial plans to provide a total of 6 trillion won in loans for promising firms. It provided 2.53 trillion won in technology financing in the first quarter of this year alone. Technology financing refers to extending loans to firms based on promising technology they own.

In terms of investment, the group aims to pour in a total of 320 billion won, which is up 100 billion won from last year. The group said 131 firms have applied for direct investment and it will announce the recipients by the end of this month. Each of the selected firms will receive up to 1 billion won.

As for support for fintech firms, Woori plans to launch its Digital Innovation Lab by integrating its two existing labs ― Wibi Fintech Lab for startups in their early stages and Developer Lab for small firms with great potential.

"We will expand investments into innovative startups and enhance cooperation with them to prepare for the 'untact' trend after the coronavirus pandemic and make the crisis into an opportunity," a Woori group official said.

Untact is a Konglish term meaning contactless or non-face-to-face.