NH Nonghyup Financial Group is expanding its efforts in productive and inclusive finance to support local strategic industries and financially vulnerable groups. The group plans to establish a 100 billion won venture fund to invest in innovative companies in advanced industries and create a separate foundation to support financial assistance for low-income individuals.
On October 29, NH Nonghyup Financial held the fourth meeting of the Special Committee on Productive and Inclusive Finance at its headquarters in Seodaemun, Seoul, where it discussed the progress of key projects and ways to enhance collaboration among its affiliates.
To expand regionally focused productive finance, the group will strengthen a comprehensive financial support system linked to strategic industries by region. Following the establishment of the Southeast Maritime, Aviation, and Defense Comprehensive Support Center and the Jeonbuk NH Financial Hub, plans are underway to support the AI, semiconductor, vaccine, and energy industries through corporate finance, investment, insurance, and consulting centered around the Southwest NH Financial Hub.
The supply of venture capital will also be increased. The affiliates will jointly create a private venture fund, tentatively named the 'NH Financial Private Venture Fund,' with a scale of 100 billion won to invest in innovative companies in advanced industries such as AI, semiconductors, mobility, and robotics. The NH Coexistence Growth Fund No. 2, with a scale of 400 billion won, will allocate 60% to corporate finance and 40% to the National Growth Fund.
In the area of inclusive finance, the affiliates plan to jointly contribute 100 billion won to establish the NH Microfinance Foundation within the year. This initiative aims to expand financial support for youth and low-income individuals in rural areas, as well as to promote bank refinancing loans for diligent borrowers in the second financial sector and enhance alternative credit assessments.
Additionally, 1.5 trillion won will be provided to support loans backed by regional credit guarantee foundations. NH Nonghyup plans to implement the cancellation and reduction of long-term delinquent debts amounting to 927.6 billion won and suspend collections within the year.
Lee Chan-woo, Chairman of NH Nonghyup Financial, emphasized, "Based on our unique regional foundation and collaborative capabilities among affiliates, we will expand differentiated financial support initiatives and enhance execution to achieve tangible results that can be felt on the ground."
* This article has been translated by AI.
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