Banks' donations up 65.7% amid 'mutual growth' push

A woman passes by an electronic donation box intalled at Gwanghwamun Square in Seoul, Dec. 31, 2023. Yonhap

The country’s top five commercial lenders made a combined 411 billion won ($312 million) in donations last year, up more than 65 percent from the previous year, prodded by the government's “mutual growth” push to help small businesses, data showed Sunday. The money was put mainly toward helping children, low-income earners, multicultural families and small businesses.

The Yoon Suk Yeol administration is spearheading the push whereby banks are to set up a fund reorienting tens of trillions of won in interest income accumulated over the past few pandemic years. Most of it will be used to support low-income earners, small businesses and the underprivileged.

The donations made by KB Kookmin, Shinhan, Hana, Woori and NH NongHyup banks came to 411 billion won, up 65.7 percent from 248 billion won in 2022.

Hana made the largest contribution of 108.9 billion won, up 157.4 percent from 42.3 billion won in 2022.

KB Kookmin’s year-on-year increase of 46.4 percent raised the total to 91.8 billion won, up from 62.7 billion won.

NongHyup’s amount stood at 85.6 billion won, up 43.1 percent from 59.8 billion won the year before.

Shinhan’s figure of 70.5 billion won rose by 72.8 percent from 40.8 billion won in 2022.

Woori made a donation of 42.3 billion won in 2022, and the figure went up 28.1 percent to 54.3 billion won last year.

KB Kookmin used part of the funds to advance KB Dream Wave 2030, a project to help children of low-income backgrounds.

Shinhan made donations to create safe child care services and help with legal fees for victims of "jeonse" fraud. Jeonse is the country’s unique housing rental system whereby tenants pay a lump sum refundable deposit instead of monthly rent for the term of the contract. Over 10,000 people lost their housing and jeonse deposits last year.

Hana’s donation will fund projects to build more day care centers and create jobs for innovative companies.

Woori will expand scholarships for multicultural families.

NongHyup’s contribution will fortify disaster responses and recovery programs.