Hana expands Korean New Deal investments

Hana Financial Group Chairman Kim Jung-tai speaks after taking office as leader of the KLPGA in Seoul, on March 11. Yonhap

By Lee Min-hyung

Hana Financial Group scaled up its earlier plan to offer 60 trillion won ($53.1 billion) for financing the Korean New Deal to 83 trillion won by 2025, the financial holding firm said Sunday.

The decision came after the banking group achieved bigger-than-expected annual funding in its drive last year. Hana planned to supply loans and investments worth 12 trillion won last year to back up the government-led Korean New Deal initiative, but it executed financing worth 26 trillion won during the same period.

Hana said it is set to focus on enhancing financial support in three key areas: customized financing for the Digital New Deal and Green New Deal, technology innovation of startups and digital personnel education.

For the Digital New Deal, the group will invest 100 billion won this year into a fund ― tentatively called the Hana New Deal Growth Fund ― to help innovative startups.

Hana's Green New Deal support will be made in line with its efforts to fulfill the environmental, social and corporate governance (ESG) standards.

The green initiative by Hana will center on enhancing development of the nation's new renewable energy, which the group believes will help Korea achieve carbon neutrality by 2025.

To be specific, the group plans to provide funding for three core next-generation energy industries: solar power, offshore wind power and hydrogen fuel cells.

According to the group, Hana is also set to play a bigger part in growing startups in promising state-of-the-art tech areas such as artificial intelligence, blockchain, cloud computing and data science.

The company also plans to hold a series of competitive events to select the best startups here and provide funding for their sustainable growth.

For talent development, Hana will enhance digital education for young people. The company will team up with the Korea Advanced Institute of Science and Technology (KAIST), Pohang University of Science and Technology (POSTECH) and Korea Polytechnics and carry out various projects to expand the nation's techfin ecosystem.

“We are going to garner group-wide efforts for the Korean New Deal and innovative financing, which Hana believes will help the economy achieve a new paradigm shift and overcome the COVID-19 shock,” Hana Financial Group Chairman Kim Jung-tai said.

“Hana will keep performing our corporate social responsibility in the area of finance and help Korea secure a leading status in the post-coronavirus era.”