Young Koreans celebrating after the announcement of the government’s 508 trillion won financial support plan
Korean youth rejoicing over the government’s unprecedented 508 trillion won support plan.
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Summary

Korea’s five major financial groups — KB, Shinhan, Hana, Woori, and NongHyup — jointly announced a total of 508 trillion won in “Productive & Inclusive Finance.” This initiative aims to revitalize the economy through loans, investments, and innovative business support that directly benefit both companies and individuals.

1. Key Overview — What is “508 Trillion Productive & Inclusive Finance”?

On November 9, 2025, KB and Shinhan Financial Groups each unveiled 110 trillion won worth of support plans. Together with Hana, Woori, and NongHyup, the total commitment from the five major banking groups now stands at 508 trillion won — marking one of the largest private financial initiatives in Korea’s history.

The policy goes beyond typical lending programs, aiming to boost national productivity while expanding financial inclusion — ensuring that money flows where it generates sustainable growth and social value.


2. Breakdown by Major Financial Groups

▸ KB Financial Group: ₩110 trillion focused on venture investments and young entrepreneurs.

▸ Shinhan Financial Group: ₩110 trillion for SMEs, startups, and ESG-based finance.

▸ Hana Financial Group: ₩100 trillion for green finance and carbon-neutral projects.

▸ Woori Financial Group: ₩95 trillion to strengthen financial inclusion for low-income sectors.

▸ NH NongHyup Financial Group: ₩93 trillion for agricultural and regional economic revitalization.

The plan aligns with Korea’s “productive finance” direction, combining government and private initiatives to support small businesses, startups, and social enterprises.

Bright atmosphere at the press briefing for Korea’s 508 trillion won Productive & Inclusive Finance Strategy
A bright and optimistic scene from the press briefing announcing Korea’s ₩508 trillion Productive & Inclusive Finance Strategy.

3. Direct Benefits for Individuals

▸ Inclusive Loans: Low-interest financial products for youth and self-employed individuals with low credit scores.

▸ Investment Support: Seed funding and venture capital for young entrepreneurs and innovators.

▸ ESG-Based Finance: Preferential rates and guarantees for green and social enterprises.

▸ Financial Education: Literacy programs for underprivileged communities.

▸ Wealth Management: Tailored asset management for both young professionals and retirees.

4. Impact on Companies & Markets

▸ Innovation: Enhanced R&D funding and easier access to capital for startups.

▸ SMEs: Reduced financing costs and stronger credit guarantees.

▸ Startups: Lower market-entry barriers through venture investment programs.

▸ Markets: Increased liquidity may help stimulate broader economic recovery.

Experts highlight that “long-term capital circulation matters more than short-term liquidity boosts.”

5. Policy Background and Government Alignment

The ₩508 trillion plan is part of the government’s “Inclusive Growth Finance Strategy,” jointly developed by the Financial Services Commission and the nation’s top financial groups.

It reflects the Yoon administration’s policy shift from traditional debt-based finance toward investment-driven, innovation-oriented financial systems.

Public policy banks like KDB and IBK will coordinate alongside private institutions for efficient capital flow.

6. Limitations and Caveats

▸ Short-term effects may be limited; most benefits will materialize over several years.

▸ ESG and innovation-driven priorities may limit benefits for traditional industries.

▸ As a private-sector-led initiative, outcomes may vary with market volatility.

Experts stress that “the sustainability of financial flow matters more than headline numbers.”

FAQ

How is “Productive & Inclusive Finance” different from traditional policy finance?

Unlike traditional, government-led loan programs, this model empowers private financial groups to invest autonomously in innovation and social impact sectors.

Can individuals benefit from this plan?

Yes. Youths, small business owners, and low-credit borrowers can access low-interest loans and startup assistance through dedicated programs.

When does it start?

KB and Shinhan have already begun implementation, with full rollout expected across all five groups by late 2025.

How are ESG goals integrated?

ESG (Environmental, Social, Governance) principles serve as key evaluation criteria, giving green and social enterprises preferential access to funds.

Will this be a one-time project?

No. Each group has set annual investment targets through 2030, ensuring continuous and transparent execution.

Important Notes

Is ₩508 trillion a realistic figure?
It’s a long-term commitment spread through 2025–2030, not a lump-sum disbursement.
How can startup founders apply?
Applications are handled via each group’s business banking platforms (e.g., KB BizBank, Shinhan SOHO Plus).
Foreign professionals pleasantly chatting after hearing about Korea’s 508 trillion won financial support plan
Foreign professionals pleasantly chatting and smiling after learning about Korea’s large-scale ₩508 trillion financial support plan.

The 508 trillion won initiative marks not just a policy, but a turning point in Korea’s financial ecosystem — reshaping how capital circulates to power inclusive growth.


When Today’s Change Shapes Tomorrow’s Life

At the heart of every financial strategy lies people. Productive finance ultimately aims to empower individuals — just as maintaining physical and mental health sustains life itself.

Balanced growth, whether economic or personal, stems from consistent care and investment. As inclusive finance warms the economy, well-being nourishes our daily lives.

In the next article, we’ll explore how “financial health” parallels “physical health” — connecting money, body, and mind into a sustainable rhythm.