On January 21, 2026, the Financial Services Commission (FSC) held the ‘Productive Finance Council for the Financial Sector’ at the Seoul Government Complex, chaired by Vice Chairman Kwon Dae-young. The meeting brought together executives from the Financial Supervisory Service, policy finance institutions, and major private financial companies to review the progress of the productive finance transformation project and share challenges. Productive finance, highlighted in the President’s New Year’s address as a key policy for Korea’s economic leap, aims to shift capital flows from traditional collateral and guarantees to future growth engines such as advanced industries, startups, and regional development. The FSC plans to regularize this council to strengthen communication between the government and the financial sector, emphasizing the establishment of a systematic management framework for tangible results.
Executives from KB Financial Group, Woori Financial Group, iM Financial Group, Korea Investment & Securities, KB Securities, Hanwha Life, Samsung Fire & Marine, Korea Development Bank, and Industrial Bank of Korea attended the meeting. A total of 1,240 trillion KRW in productive finance support was announced, including 614 trillion KRW from private finance and 626 trillion KRW from policy finance, marking a significant increase of about 715 trillion KRW compared to October 2025. Each financial institution shared updates on organizational and performance management reforms, KPI adoption, and specific project implementations, while policy finance institutions presented support measures aligned with government initiatives such as the National Growth Fund and regional finance expansion targets.
Vice Chairman Kwon emphasized the importance of mutual understanding between finance and industry, urging financial institutions to strengthen their capabilities to evaluate future value rather than relying solely on collateral or past performance. He called for a redesign of organizational and performance management systems, including KPIs and incentive structures, to make productive finance a company-wide goal. Financial institutions reported on the establishment of dedicated productive finance teams, fund creation, and regional projects, while the FSC stressed the need for rapid and flexible communication to address on-site challenges and ensure effective implementation.
Going forward, the FSC will conduct monthly reviews with the financial sector to monitor the progress of the productive finance transformation and enhance cooperation between policy and private finance. As funding for advanced industries, venture startups, and regional companies expands, innovation in industrial structure and balanced regional development are expected. The government will strengthen management systems and project-based communication to ensure real results, encouraging autonomous innovation and responsible management in the financial sector. The regularization of this council is anticipated to mark the beginning of a major economic leap for Korea.
The FSC’s productive finance transformation project represents a paradigm shift in Korea’s financial industry. By redirecting capital from traditional collateral-based lending to future-oriented sectors such as advanced industries, ventures, and regional growth, finance becomes a catalyst for industrial innovation. Collaboration between policy and private finance, KPI-driven organizational reform, and enhanced field communication will contribute to sustainable growth and national competitiveness. Integrating AI-driven data analysis and risk management systems can further improve the efficiency and transparency of capital allocation.