Hana, Woori to invest W10 tril. each for Korean New Deal

Financial Services Commission (FSC) Chairman Eun Sung-soo, center in the right, attends a breakfast meeting with five leaders of major financial holding firms here in Seoul, Thursday. Yonhap

By Lee Min-hyung

Hana Financial Group and Woori Financial Group will invest 10 trillion won ($8.3 billion), respectively, in the Korean New Deal initiative in response to a top regulator's call for them to join the national development strategy.

The two financial holding firms shared their vision Sunday on supporting the drive by injecting capital into the new policy's two pillars ― the Green New Deal and the Digital New Deal. The Korean New Deal initiative is a top economic vision recently introduced by President Moon Jae-in and his administration to create more jobs and reinvigorate the COVID-19 hit economy

The injected capital will be used to help establish smart industrial clusters across the nation and develop local parts and equipment industries, according to Hana. It also said it would expand support on building equipment and facilities for the fifth-generation (5G) network and data centers.

For the growth of environmentally-friendly industries, the financial group is also set to invest in low-carbon energy businesses. As a first step to fulfill the vision, Hana formed a partnership with Doosan Group to support the latter's green energy businesses using wind power and hydrogen fuel cells.

“We are going to play a role of primer for the success of the Korean New Deal,” Hana Financial Group Chairman Kim Jung-tai said. “Hana will offer financial support for the nation to overcome the ongoing economic difficulties.”

The decision came three days after Financial Services Commission (FSC) Chairman Eun Sung-soo held a breakfast meeting with leaders of the nation's five major financial holding firms ― KB, Shinhan, Hana, Woori and NongHyup.

Woori Financial Group also expressed its willingness to back up the New Deal drive by pledging to invest 10 trillion won for the next five years in the government's digital and green economic growth initiative.

The company plans to offer 3.3 trillion won for the Digital New Deal for which Woori plans to place a focus on building a data-driven ecosystem, digitalizing social overhead capital and developing contactless industries, the financial holding firm said.

Woori will invest 4.5 trillion won to support the Green New Deal. The company plans to focus on helping develop new renewable energy and eco-friendly industries. It also plans to establish what it calls the “Green New Deal Investment Platform” to raise more awareness of green industries and provide financial aid in the area.

“We will provide financial support for the Korean New Deal, and remain more socially responsible amid the economic downturn induced by the prolonged COVID-19 pandemic,” Woori Financial Group Chairman Son Tae-seung said.

During the meeting with Eun, the leaders of Hana and Woori decided to extend loan maturities and interest payments, scheduled for the end of September, for virus-hit companies and small business owners.

The decision came as the local economy is expected to continue reeling from the virus in the second half of the year, as the COVID-19 spread is unlikely to come to a complete end by then and will continue freezing the already sagging economy.