Woori Bank to Establish Dedicated "Productive Finance" Department, Consolidating Corporate Lending Capabilities

Serving as the Control Tower for Productive Finance
Composed of Diverse Personnel from Credit Policy, Finance, and Risk Management

Exterior view of Woori Bank.

Woori Bank will establish a dedicated department for productive finance within this year. This move is part of the "Future Co-Growth Project" announced by Woori Financial Group Chairman Lim Jongryong at a meeting last month. At that time, Chairman Lim stated 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.

According to the financial industry on October 20, Woori Bank is currently preparing to establish a dedicated department for "productive finance." The tentatively named "Productive Finance" department will serve as a control tower for related work, functioning as a dedicated organization for productive finance.

A Woori Bank official explained, "The Productive Finance Department will involve various departments, including the corporate group, credit policy, financial planning, and risk management."

Productive finance is one of the government's key financial policies aimed at shifting the flow of finance from real estate to advanced industrial sectors. This is also why Woori Bank is actively responding to productive finance policies. Woori Bank has traditionally been strong in corporate lending. Under this government policy direction, the bank intends to move away from an interest income structure centered on mortgage loans and instead leverage its capabilities in corporate lending.

According to the "Future Co-Growth Project" announced by Woori Financial Group, the group plans to support 73 trillion won in productive finance and 7 trillion won in inclusive finance over the next five years through 2030. The specific investment plan for productive finance consists of: 56 trillion won in investment and lending to mid-sized, small, and venture companies in advanced strategic industries; 1 trillion won in group joint investment funds; 1 trillion won in venture capital (Woori Investment & Securities) investments; and 5 trillion won in productive finance funds by asset management affiliates.

The newly established Productive Finance Department is expected to be responsible for the "56 trillion won investment and lending to mid-sized, small, and venture companies in advanced strategic industries." The corporate group at Woori Bank is confident in its ability to handle productive finance investment and lending, as it has already been shifting its management focus from real estate to corporate lending since the end of last year. The bank is reducing the proportion of real estate leasing loans, which previously accounted for a large share of corporate lending, and is expanding loans to the manufacturing sector.

The decision to assign personnel from various departments, including credit policy and risk management, to the Productive Finance Department is interpreted as an effort to enhance credit evaluation and risk management in corporate lending related to productive finance. In particular, Woori Bank plans to actively utilize artificial intelligence (AI) in the corporate credit sector. Woori Financial Group intends to develop its own AI program to further improve efficiency and risk management in loan evaluation and management by relationship managers dedicated to corporate groups.

Meanwhile, Woori Financial Group was the first among major financial institutions to announce a concrete plan for productive finance investment. Since the holding company has already established a blueprint for productive finance investment and lending, the creation of a dedicated department is expected to immediately lead to an expansion of corporate lending and investment in advanced industrial sectors.