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🇰🇷 South Korea /Economy & Trade

South Korea's three state-run banks to create 700 billion won fund for small and venture firms

From Dong-A Ilbo · () Korean

Translated from Korean and summarized by DistantNews. Read the original for the full story.

At a glance

News Official statement New plan
  • Three South Korean state-run banks will establish a 700 billion won joint fund for promising companies in future industries.
  • The banks plan to contribute 450 billion won combined, with each investing 150 billion won, while the fund supplies growth financing and supports overseas expansion.
  • The initiative forms part of a productive-finance effort to meet companies' funding needs at different stages of growth.

IBK Industrial Bank of Korea, Korea Development Bank and the Export-Import Bank of Korea are joining forces to create a 700 billion won fund for promising companies expected to lead future industries.

The banks announced the plan on September 7 as part of an effort to provide productive finance. The fund will supply capital to small, mid-sized and venture companies and support their expansion into overseas markets.

We will actively respond to promising companies' funding needs at each stage of growth, based on cooperation among policy-finance institutions.

· IBK officialThe official described how the three banks intend to support companies through the joint fund.

Each institution plans to contribute 150 billion won, bringing their combined investment to 450 billion won. The total fund is expected to reach 700 billion won. The banks have been discussing the fund's structure, eligible recipients and implementation schedule.

An IBK official said the cooperation would help the policy-finance institutions respond more actively to companies' funding needs at each stage of growth. The official also said combining the banks' investment and financial-support capabilities should deliver policy funds more effectively to companies that need them.

We expect policy funds to be supplied more effectively to companies that need them by combining each institution's investment and financial-support capabilities.

· IBK officialThe official explained the expected benefit of pooling the banks' resources.
About this summary

Originally published by Dong-A Ilbo in Korean. Translated, summarized, and contextualized automatically by DistantNews, with a note on how the source frames the story. Not individually reviewed before publishing. How this works.

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