Next Year's Management Goal Set as 'A Bigger KDB Fully Committed to Fostering South Korea's Industries with A.I. (All-in)'
Promoting Advanced Strategic Industries like Semiconductors and AI... Leading Green Transition and Driving Regional Growth
Ensuring Reliable Market Safety Net Role
On the 26th, Korea Development Bank (KDB) held a board meeting and set next year's management goal as "A Bigger KDB All-in (A.I.) for the Development of Korean Industry" in response to the severe domestic and international economic situation and the government's economic policy direction. The bank announced that it will focus all its capabilities on supporting the government's "New Industry and Financial Policy," including fostering advanced strategic industries, leading green transition, driving regional growth, and serving as a market safety net.
First, KDB will actively promote the "Korea Rebound Program," a three-year plan totaling KRW 100 trillion, to foster nationally important advanced strategic industries such as semiconductors and artificial intelligence (AI). In particular, in 2025, the first year of implementation, KDB plans to supply approximately KRW 30 trillion in policy funds, including launching a new semiconductor facility investment support program at the lowest government bond interest rate level, to strengthen the global competitiveness of Korea's advanced strategic industries.
Additionally, KDB will vigorously advance the first phase of the Future Energy Fund project (KRW 1.26 trillion), in which it is the largest investor, and expand green finance support to accelerate the green transition of domestic industries as the national climate finance bank (K-Climate Bank). This includes supporting carbon reduction facility investments and fostering low-carbon industries to help companies decarbonize their supply chains.
To enhance the competitiveness of industries and companies outside the metropolitan area, KDB will also expand financial support to promote the creation of regional venture ecosystems, green transition, and business restructuring. To revitalize regional venture investments, a new regional innovation fund investment project will be launched, while specialized products for business structure transformation aimed at improving the health of traditional manufacturing industries will be expanded.
Furthermore, in response to the recent increase in domestic and international economic uncertainties, KDB will maintain a permanent operation system for a market stabilization program worth KRW 41.8 trillion, including support for refinancing corporate bonds and commercial papers (CP). If necessary, it plans to expand the scope and scale of support through consultations with the government and related institutions to stabilize the financial market early. KDB will also introduce new programs for preemptive corporate improvement targeting mid-sized companies, which have been a blind spot so far. Through this, KDB will actively support the stable management activities and competitiveness enhancement of mid-sized companies that play a pivotal role in the Korean economy.
To ensure sustainable and smooth policy finance execution, KDB plans to secure foreign currency funds stably as Korea's representative borrower in the international procurement market by issuing "SSA-style global bonds" and actively fulfill its role as the government's research and development (R&D) center by hosting the "Next100 Forum," a communication platform with experts from the government, companies, and research institutions, supporting the establishment of the government's new industry and financial policies.
KDB stated, "We expect 2025 to be a year where enormous challenges and opportunities coexist for the Korean economy," and explained, "As a leading policy finance institution responsible for 1% of the Korean economy, we will actively fulfill our role."
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
