Productive finance allocation raised by 9.4 trillion won, to be deployed early through next year

Inclusive finance gets additional 600 billion won; 3.5 trillion won targeted for this year

Subsidiaries to roll out tailored inclusive finance products and services

Woori Financial Group Chairman Lim Jong-ryong presides over the June Advanced Strategic Industry Finance Council meeting at the group's headquarters in Jung-gu, Seoul, on June 19. The council decided to expand productive and inclusive finance support by 10 trillion won and to accelerate the deployment of 3.5 trillion won in inclusive finance. Lim called on subsidiaries to step up efforts in supporting advanced strategic industries and financially vulnerable groups. [Woori Financial Group]
Woori Financial Group Chairman Lim Jong-ryong presides over the June Advanced Strategic Industry Finance Council meeting at the group's headquarters in Jung-gu, Seoul, on June 19. The council decided to expand productive and inclusive finance support by 10 trillion won and to accelerate the deployment of 3.5 trillion won in inclusive finance. Lim called on subsidiaries to step up efforts in supporting advanced strategic industries and financially vulnerable groups. [Woori Financial Group]

Woori Financial Group will expand its "Future Co-Growth Project" — a flagship initiative for productive and inclusive finance — by a total of 10 trillion won ($6.51 billion), bringing the project's overall scale to 90 trillion won. The increase allocates an additional 9.4 trillion won to productive finance and 600 billion won to inclusive finance.

The 9.4 trillion won increase in productive finance will be deployed early — this year and next — to help companies secure growth momentum. On the inclusive finance side, the group plans to rapidly execute a total of 3.5 trillion won in support within this year, expanding beyond basic low-income financial products to include mid-rate loans, interest rate caps, small-business loans and the cancellation of delinquent debt.

Woori Financial said it finalized the expansion plan at its June Advanced Strategic Industry Finance Council meeting on June 19, chaired by group Chairman Lim Jong-ryong and attended by the CEOs of major subsidiaries.

For productive finance, the 9.4 trillion won increase will be split into 5.7 trillion won this year and 3.7 trillion won next year, with both tranches deployed within two years to strengthen the flow of capital to the real economy. The group aims to contribute to regional economic development while broadening financial support for advanced strategic industries and export-oriented companies.

Woori Financial will also significantly expand the scope and scale of its inclusive finance program. The group plans to deliver a total of 3.5 trillion won in inclusive finance support this year — adding 2.3 trillion won on top of the original annual target of 1.2 trillion won. The support model has also been diversified beyond basic low-income financial products to include mid-rate loans, interest rate caps and guaranteed loans.

To help long-term delinquent customers get back on their feet, the group will cancel approximately 280 billion won in long-overdue debt. The move is intended to enable financially vulnerable individuals to return to normal economic activity through active debt relief, fulfilling finance's social responsibility.

At the subsidiary level, Woori Bank will cancel an additional 120 billion won in long-term delinquent debt in the second half of this year. The bank had earlier, in March, halted collection on approximately 40 billion won in long-overdue debt and waived accrued interest. Woori Card is also pursuing the cancellation of approximately 120 billion won in long-term delinquent debt. Woori Financial said it will continue to gradually expand debt cancellations to address gaps in financial access and ease the burden on vulnerable groups.

The group will also strengthen the financial safety net for low- and mid-credit borrowers, supplying a total of 1.1 trillion won in mid-rate loans across all subsidiaries — including the bank, card, capital and savings bank units. On top of that, the group will inject an additional 2.3 trillion won through small-business loans of 600 billion won, emergency living expense and loan-switching products totaling 300 billion won, and microfinance of 12 billion won, to reach the full-year target of 3.5 trillion won.

Woori Financial is also rolling out tailored inclusive finance products and services at each subsidiary to improve the real-world impact of its support.

Woori Bank's personal credit loan interest rate cap of 7 percent per annum, introduced in January, provided approximately 1.4 billion won in interest relief to about 46,000 customers through the end of May. The "Woori WON Dream Living Expense Loan," launched in March, uses an alternative credit scoring model and is currently providing emergency living funds to about 3,000 customers.

In May, the bank launched the "Woori WON Dream Loan-Switching" product, which allows customers with high-interest loans from non-bank lenders to refinance at lower bank rates, reducing the interest burden on vulnerable borrowers and helping them transition into the mainstream financial system.

Woori Financial Savings Bank has cumulatively supplied approximately 118 billion won in "Saittdol Loans" — a mid-rate policy product — through the end of May, maintaining what the group described as the top performance in the industry. The savings bank is also applying interest payments made by multiple-debt holders and customers in the bottom 30 percent of external credit ratings toward principal repayment, reducing their actual debt burden. Customers with remaining delinquency interest after subrogation on special guarantee loans receive delinquency record removal and interest waivers, supporting their credit recovery.

Chairman Lim said the increase in productive and inclusive finance targets represents "a commitment to the market and our customers that Woori Financial will take greater responsibility in supporting the real economy and vulnerable groups." He also called on each subsidiary to "work to identify productive and inclusive finance systems and products that customers can actually feel the benefit of" as they pursue their targets.

Lim added that productive finance must be "pursued with urgency so that funds needed by the real economy — including advanced strategic industries and export companies — are supplied in a timely manner," while inclusive finance "must provide real help in resolving the loan cliff for low- and mid-credit borrowers and supporting the recovery of vulnerable borrowers." He urged each subsidiary to "actively implement long-term delinquent debt cancellation and mid-rate loan supply — the most needed tools for financially vulnerable groups — so that Woori Financial can truly become a warm and caring financial institution."


won@heraldcorp.com