[Financial Microscope] Is Chairman Lim Jongryong the Reason Woori Financial Leads in Productive Finance?

Started Public Service at the Ministry of Finance and Economy After Passing the 24th Civil Service Exam
A Veteran Bureaucrat Who Served as First Vice Minister of Strategy and Finance and Chairman of the Financial Services Commission
Unmatched Un

Woori Financial Group is making notable strides in the field of "productive finance." Many attribute this to the significant influence of Woori Financial Group Chairman Lim Jongryong, who previously served as Chairman of the Financial Services Commission. It is believed that his experience in considering the need to redirect capital concentrated in real estate toward key industries and the capital market has been reflected in the management of the financial holding company.

Former Financial Services Commission Chairman Lim Jongryong... The Most In-Depth Understanding of Financial Authorities Among Financial Holding Company Chairmen

On September 29, Lim Jongryong, Chairman of Woori Financial Group, announced that the group would invest a total of 80 trillion won across all affiliates by 2030 to promote a transition to productive finance and expand inclusive finance. At the same event, he also unveiled a plan to invest 10 trillion won in the National Growth Fund. Woori Financial Group was the first among financial holding companies and private corporations to pledge such an investment.

Lim’s career background is cited as the reason for his swift response to financial policy directions. After graduating from Yonsei University with a degree in economics, Lim passed the 24th National Civil Service Examination and began his public service career at the Ministry of Finance and Economy.

He is a career bureaucrat who served as Director of the Banking System Division and the Securities System Division at the Ministry of Finance and Economy, First Vice Minister at the Ministry of Strategy and Finance, and Chairman of the Financial Services Commission. During his time in public office, he was recognized not only for his expertise but also for his outstanding political judgment.

It is only natural that he has a deeper understanding than anyone else of the intentions behind financial authorities’ policies, such as lending regulations, policy funds, support for small business owners, and industrial restructuring. Above all, Chairman Lim is someone who is well-versed in both the nuances and the challenges faced by economic bureaucrats.

His abilities are well recognized by officials at the Financial Services Commission. Both executives and working-level staff at the commission say, “Whenever you work with Lim Jongryong, you can’t help but wonder what he will accomplish next,” and, “He stands out among all previous chairmen of the Financial Services Commission.”

Undisputed Leader in Productive Finance

It can be said that this background played a role in Woori Financial Group being the first to announce its investment plan for the National Growth Fund. In particular, by committing to a 10 trillion won investment, the group effectively set the benchmark for other financial holding companies.

At a press conference, Chairman Lim told reporters that the decision to set the investment amount at 10 trillion won was made “in consideration of Woori Financial Group’s share within the entire financial sector.”

Now, financial groups such as KB Financial Group, Shinhan Financial Group, and Hana Financial Group, which pride themselves on being ahead of Woori Financial Group, are in a position where they must also consider investments of at least 10 trillion won. For financial authorities, who cannot directly intervene in the investment plans of financial companies, Woori Financial Group’s proactive decision is especially welcome.

Looking at the details of Woori Financial Group’s productive finance (Future Co-Growth Project) plan announced by Chairman Lim, both the scale and substance exceed expectations. Woori Financial Group announced that it would invest a total of 80 trillion won over the next five years to expand productive and inclusive finance.

In addition to the 10 trillion won National Growth Fund, the group’s own investment and lending account for 63 trillion won. The group’s own investment, including that by affiliates, amounts to 7 trillion won, while lending reaches 56 trillion won. The plan stands out for its intention to support the ecosystem of core industries, ranging from large corporations in advanced industries to small and medium-sized enterprises in parts and materials. Seven trillion won has also been allocated for inclusive finance, such as debt restructuring for small business owners. After reviewing the announcement of Woori Financial Group’s Future Co-Growth Project, one official from the Financial Services Commission commented, “It was almost like a government policy announcement.”

In fact, as the topic of productive finance gained traction, Woori Financial Group was quick to shift its corporate lending focus from real estate to manufacturing. Among the five major commercial banks, Woori Bank had the highest proportion of loans to the real estate leasing sector (about 30%). Recognizing this issue, the bank has been reducing real estate leasing loans since the end of last year, in line with policy directions, while increasing loans to advanced manufacturing industries.

The industry’s evaluation of Lim’s responsiveness to the financial authorities’ policy direction is also positive. An industry insider said, “Our organization has long struggled with external pressures and lacked a clear sense of direction, which limited our growth. However, since Chairman Lim took office, both the internal atmosphere and our external standing have changed.”

Another executive in the financial sector said, “Woori Bank has traditionally excelled in corporate lending and has the capacity for even greater growth. If the chairman, who has completed the acquisitions of a securities firm and an insurance company, continues to manage with consistency, the group will be able to achieve even greater results.”