South Korea Reviews 'Cooperative Finance Index' with Six Major Banks

Ha Jun-kyung (sixth from left), Chief Economic Officer of the Blue House, poses for a commemorative photo with government and banking officials at the 'Financial Sector Cooperative Growth Strategy Review Meeting' held on July 1 in Jung-gu, Seoul. From left to right: Lee Tae-hoon, Executive Director of the Korean Bankers Association; Kang Myung-kyu, Vice President of Shinhan Bank; Lee Won-jae, Deputy Secretary of the Office of the President; Song Yong-seop, Vice President of Woori Bank; Shin Jin-chang, Secretary General of the Financial Services Commission; Ha Jun-kyung, Chief Economic Officer of the Office of the President; Lee Byung-kwon, Deputy Minister of the Ministry of SMEs and Startups; Eom Eul-yong, Vice President of NH Bank; Kim Hyun-wook, Vice President of Kookmin Bank; Kwon Oh-sam, Vice President of Industrial Bank; Seo Yu-seok, Vice President of Hana Bank. [Photo=Blue House]

The Blue House announced on July 1 that it held a 'Financial Sector Cooperative Growth Strategy Review Meeting' with six major banks.

According to the Blue House, the meeting, chaired by Chief Economic Officer Ha Jun-kyung, included representatives from six banks (KB Kookmin Bank, IBK Industrial Bank, NH Bank, Shinhan Bank, Woori Bank, and Hana Bank), the Ministry of SMEs and Startups, the Financial Services Commission, the Commission on Shared Growth, the Financial Supervisory Service, and the Korean Bankers Association.

During the meeting, the six banks shared the current status and plans for cooperative efforts in the financial sector.

They also discussed strategies to ensure that the financial sector's cooperative initiatives lead to tangible growth for small and medium enterprises (SMEs) and small business owners.

Earlier, in January, the government announced a 'Cooperative Growth Strategy for Large and Small Enterprises,' aiming to expand the cooperative ecosystem beyond traditional manufacturing and construction sectors to include finance, defense, and online platforms. As part of this initiative, the Cooperative Finance Index will quantify the level of cooperation between the financial sector and SMEs, a measure that has been requested by the SME sector.

The Blue House explained that the Cooperative Finance Index will comprehensively evaluate factors such as cooperative finance performance, cooperation outcomes, and consumer perception. This is intended to encourage banks to lower lending barriers and provide closer support to drive corporate growth.

The Commission on Shared Growth and the Financial Supervisory Service plan to introduce the 'Cooperative Finance Index' in the second half of the year, which is expected to serve as a new model for transforming the paradigm of cooperation in the financial sector.

Ha emphasized, "Financial institutions must become strong partners that drive the growth of SMEs and small business owners, moving beyond merely providing loans."

He added, "These efforts will create a virtuous cycle that enhances the financial health and profitability of financial institutions, enabling sustainable growth for our economy."

* This article has been translated by AI.