Woori to inject 43 trillion won for Korean New Deal

Woori Financial Group headquarters in Seoul / Courtesy of Woori Financial Group

By Park Jae-hyuk

Woori Financial Group will inject an additional 43 trillion won ($38 billion) for Korean New Deal projects and innovative financing by the end of 2025, the banking group said Monday.

The decision was made after Woori Chairman Son Tae-seung hosted a meeting of the committee in support of the Korean New Deal, Friday, to assess the group's efforts to support the government-led development strategy aimed at overcoming the COVID-19 pandemic and transforming the nation's industrial structure.

Last August, the group organized the committee comprised of representatives from its affiliates to devise medium- and long-term plans to support the project. The committee agreed in the latest meeting to accelerate its ongoing efforts.

“We will lead the Korean New Deal and seek promising businesses to support,” the chairman said. “I hope the entire group pushes ahead with supporting the Korean New Deal and innovative financing to take this opportunity to create synergy effects and satisfy environmental, social and corporate governance (ESG) criteria.”

Last year, Woori lent 8.5 trillion won and invested 800 billion won for the Korean New Deal and innovative financing. The combined amount was 40 percent higher than the group's initially planned amount.

The group will lend an additional 40 trillion won to production sectors, including manufacturing businesses and services companies relevant to balanced regional development. According to the group, this is intended to contribute to strengthening Korea's social safety net.

In addition, Woori's affiliates will participate in raising a New Deal Fund this year to encourage the Korean New Deal.

Based on its experience raising the first Korean New Deal infrastructure fund in the private sector, the group plans to create a 100 billion won Green New Deal Fund during the first half of this year. It will also invest 3 trillion won by 2025, including an investment of 1.3 trillion won in the eco-friendly New Deal infrastructure fund.