Woori Financial Group has achieved a remarkable milestone by deploying a total of 25.3 trillion won in the productive finance sector through August of this year, reaching 116% of its annual target ahead of schedule. This achievement was officially announced at the Advanced Strategic Industry Finance Council chaired by Chairman Lim Jong-ryong, emphasizing a focus on boosting real economic vitality beyond mere numerical targets. This result combines 1.5 trillion won in investments and 23.8 trillion won in loans, already reaching 35.7% of the five-year target for the Future Co-Growth Project. Building on its accumulated capabilities, Woori Financial plans to broaden its support scope to local regions and technology-driven small and medium-sized enterprises (SMEs). This article closely examines the current status of Woori Financial’s productive finance supply, specific support methods, and inclusive finance achievements. Please join us in reviewing the flow of financial support that provides practical help to neighbors facing economic difficulties.
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Woori Financial Achieves 116% of Annual Productive Finance Target… Supplies 25.3 Trillion Won
1. Background of Early Achievement of 116% Annual Productive Finance Target
As of August this year, the total supply in the productive finance sector by Woori Financial Group reached 25.3 trillion won. This represents an impressive over-achievement of 116.3% compared to the initially set annual target. The secret behind achieving this target so quickly lies in aggressive fund execution tailored to on-site demand and thorough plan implementation. In particular, by supplying 23.8 trillion won in loans and investing 1.5 trillion won, the group created a virtuous cycle of funds. At the council held on the 16th, Chairman Lim Jong-ryong commended the achievements thus far and clearly outlined future directions. Woori Financial is now shifting its focus away from the metropolitan area to hidden gems in local regions and technology-centric SMEs. A core objective of this project is to ensure funds flow appropriately so that SMEs do not suffer from funding shortages. Thanks to the efforts of employees working hard in the field, it is evaluated that the threshold for corporate funding has significantly lowered. If this trend continues, it is expected to contribute greatly not only to revitalizing local economies but also to strengthening the industrial competitiveness of the entire nation.
Woori Financial supplied 25.3 trillion won through August, exceeding its annual productive finance target by 116%.
2. Achievements in National Growth Fund and Venture Capital Investment
Woori Financial is actively expanding its participation in the National Growth Fund and the supply of venture capital to provide customized funding support for companies at various growth stages. A representative example is a 220 billion won project fund discovered by Woori Bank, which received final approval from the Growth Enterprise Discovery Council under the Financial Services Commission. This case has drawn intense industry attention as it is the first approval to go through the FSC’s relevant council. The most notable feature is that Woori Bank deeply participated in the entire process, from directly discovering and recommending promising companies to connecting them with policy finance. In October, the National Growth Fund is scheduled to contribute 50 billion won, while Woori Financial will directly participate with 65 billion won, preparing for the fund’s establishment and full execution. Woori Investment Securities has also received an impressive report card in the venture capital supply sector, solidly supporting the growth of the entire group. The scale of venture capital supplied by Woori Investment Securities through August this year was 365.1 billion won, exceeding the initial target by 180%. As investments in new technology businesses become more active, an environment has been created where innovative companies in need of funds can spread their wings. Behind this continuous investment is the persistent effort of field organizations that are not afraid of risk and seek out promising companies.
With the first approval of the National Growth Fund and 180% over-achievement in venture capital, a solid foundation for corporate growth has been established.
3. Support for Local Regions and SMEs, and Speed of AI Transformation
Woori Financial is not resting on its past achievements and plans to further broaden its support targets to local regions and technology-centric SMEs. This expresses the determination to faithfully play the role of easing the burden on local companies that face relatively greater difficulties in raising funds compared to the metropolitan area. To smoothly handle this large-scale fund supply, the group is also accelerating its AI transformation of internal business processes. Out of 75 AI transformation tasks related to productive finance, 13 tasks in areas such as credit review, risk management, and corporate sales support have already been completed. By actively adopting advanced technology, the loan review and fund execution processes have become much faster and more accurate. As complex and rigorous review procedures are simplified with the help of AI, field branch employees can focus more on customer consultations and discovering promising companies. Practical benefits are reaching SMEs that previously could not obtain loans due to lack of collateral or information despite having technical capabilities. This lays the foundation for hidden gems in local regions to resolve funding difficulties and devote themselves to research and development.
Business innovation through AI transformation has increased the speed and accuracy of financial support for local regions and SMEs.
4. Expansion of Inclusive Finance and Alleviation of Debt Burden for Vulnerable Groups
Woori Financial is also steadily implementing plans to expand inclusive finance for people facing economic difficulties, in addition to productive finance. According to the inclusive finance expansion plan announced in June, 950 billion won in small and medium-sized enterprise finance and 790 billion won in mid-interest rate loans were supplied through August this year. Including loans for small business owners, the total funds released for vulnerable groups reached 2.2 trillion won. In particular, the 7% annual interest rate cap on personal credit loans, which Woori Bank is ambitiously implementing, benefited approximately 75,000 customers by the end of August. As a result, many common people who were suffering from interest burdens due to soaring rates could directly feel a total interest reduction of 3 billion won. Large-scale write-offs of long-term delinquent debts are also being carried out to help financially vulnerable groups escape the shackles of debt and return to normal economic activities. In the first half of this year alone, Woori Bank wrote off 42.4 billion won in long-term delinquent debts, warmly supporting the restart of over 2,300 individuals. By the end of September, an additional 12 billion won is scheduled to be written off, and Woori Card will also write off 12 billion won, with the group clearing a total of 280 billion won in bonds. These multi-faceted efforts serve as an important catalyst to strengthen the safety net of the collapsed common people’s economy, going beyond simply lending money.
Through inclusive finance, 2.2 trillion won has been supplied, supporting vulnerable groups via interest rate caps and bond write-offs.
5. Large-Scale Fund Injection into the Future Co-Growth Project
Woori Financial Group is sparing no investment in the Future Co-Growth Project to promote the sustainable development of the national economy. In June, Woori Financial made the bold decision to inject an additional 10 trillion won into the project. Consequently, the total amount of funds Woori Financial is investing in the two pillars of productive and inclusive finance has swelled to a massive 90 trillion won. This enormous sum of 90 trillion won is acting as a core driver to improve the quality of the South Korean economy and discover future growth engines. Rather than being a one-off support, the funds are being systematically executed over a long-term horizon of five years, earning high market trust. A group-level control tower is constantly operating to ensure that funds flow appropriately to where they are needed, enhancing execution capability. Chairman Lim Jong-ryong repeatedly emphasized that inclusive finance must also be conducted with sincerity, ensuring that necessary funds reach customers facing economic difficulties in a timely manner. This management philosophy has changed the mindset of field employees and serves as a foundation for realizing customer-centric financial services.
With the additional injection into the Future Co-Growth Project, the total funds invested in productive and inclusive finance have expanded to 90 trillion won.
6. Future Outlook and Economic Ripple Effects
Woori Financial Group’s over-achievement of its productive finance target is leaving a fresh stimulus and a exemplary precedent for the entire domestic financial industry. This is because efforts to coexist with the real sector of the national economy, moving away from past practices focused solely on profit pursuit, are bearing concrete fruits. This fund supply trend is expected to be maintained without waver during the remaining second half of the year, with the scope of beneficiaries expanding further. In particular, as SMEs, which act as the capillaries of the local economy, regain vitality, positive ripple effects on job creation and investment activation are anticipated. Readers are encouraged to pay attention to the positive changes Woori Financial’s actions are bringing to our society and economy. If you know of small business owners or SMEs facing funding difficulties, guiding them to the various financial support programs provided by Woori Financial is a good approach. Please watch with a warm eye as the financial sector faithfully performs its role as a reliable partner that comforts the pain of common people and supports corporate growth. We send our strong support to our companies and common people who are moving forward without losing hope despite economic difficulties.
Woori Financial’s expansion of productive finance serves as a model case for coexistence with the real economy and is expected to have significant ripple effects in the future.
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