Banks Spent 1.1 Trillion Won on Social Contributions Last Year

2020 Bank Social Contribution Activity Report Published
Most in the Field of Microfinance with 584.9 Billion KRW

[Asia Economy Reporter Kim Jin-ho] It has been revealed that the banking sector supported more than 1 trillion won in social contribution activities last year.

According to the '2020 Banking Social Contribution Activities Report' published by the Korea Federation of Banks on the 12th, the banking sector spent a total of 1.0919 trillion won on social contribution activities last year.

Looking at the support details by sector, 584.9 billion won was provided to the low-income finance sector. This was followed by 333.5 billion won for local community and public interest sectors, 96.8 billion won for academic and educational sectors, 66.1 billion won for arts patronage and sports sectors, 5.9 billion won for global sectors, and 4.7 billion won for environmental sectors.

The Federation of Banks explained that traditional social contribution sectors closely related to banks, such as low-income finance and local community/public interest, accounted for most of the support, and that although the global and environmental sectors are still minimal, greater support is expected in the future.

Last year, the banking sector also took the lead in supporting vulnerable groups to overcome the COVID-19 crisis. Over the past year, financial support totaling 251.9 trillion won was provided, including new loans of 125.4 trillion won and maturity extensions of 125.7 trillion won, targeting small and medium-sized enterprises and small business owners.

In addition, as part of creating social value for companies, support for nurturing startups and fostering the entrepreneurial ecosystem was actively carried out. The Korea Federation of Banks explained that the Banking Sector Youth Startup Foundation, established with a total contribution of 845 billion won from the banking sector, has achieved an economic effect worth 6.7 trillion won, including the creation of 32,523 jobs over the past three years.

Furthermore, the Federation of Banks stated that it conducted a survey and revamped the report by reflecting the United Nations (UN) Sustainable Development Goals to systematically convey the efforts and capabilities the banking sector dedicates to solving social issues.

Through the survey, they identified the public’s current perception of bank social contributions and the roles expected of banks in the future, while incorporating the global standard of the ‘UN Sustainable Development Goals’ to promote qualitative improvement in the banking sector’s social contribution activities.

Kim Kwang-soo, Chairman of the Korea Federation of Banks, emphasized, "The scale of social contributions by domestic banks has been steadily increasing every year," and added, "We will continue to work together so that the various activities and efforts of the banking sector can contribute to solving the issues our society faces."