The Financial Services Commission announced on June 11 that it held the inaugural 'Policy Finance Partnership' event in Daejeon with six policy finance institutions, including the Korea Development Bank, Industrial Bank of Korea, Korea Credit Guarantee Fund, Korea Technology Finance Corporation, Korea Eximbank, and Korea Trade Insurance Corporation.
The event was attended by representatives from the Daejeon, Sejong, and Cheongju chambers of commerce, along with over 70 local businesses, who shared insights on the current state of the regional economy and financial challenges.
To promote the expansion of local preferential finance, the Financial Services Commission has decided to increase the number of institutions participating in the policy finance local supply target program from four to six, now including Korea Eximbank and Korea Trade Insurance Corporation. As a result, the scale of policy finance supply for non-capital regions is projected to increase by 34 trillion won, from 130 trillion won last year to 164 trillion won by 2028. During the same period, the proportion of non-capital region supply is also planned to rise from 40.0% to 45.0%.
The government is also pushing for an expansion of private financial supply in the regions. Since April, the Financial Services Commission has lowered the weight of loan-to-deposit ratios for banks lending to businesses and individual entrepreneurs in non-capital regions. In the second half of the year, it will consider designating new innovative joint loan services for small and medium-sized enterprises through local and internet banks. Additionally, plans are in place to gradually increase loan limits and preferential loan-to-deposit ratios for non-capital region borrowers in savings banks and mutual finance.
A pilot project aimed at improving access to regional finance will also commence. Starting in July, the Financial Services Commission will begin a first-phase pilot operation allowing loan services from four major banks at 20 local post offices.
Lee Ok-yeon, Chairman of the Financial Services Commission, stated, "Achieving balanced national development is a historical mission that must be accomplished for a new leap in our economy. We will mobilize all resources from the government and the six policy finance institutions to ensure that local businesses can access funds at lower interest rates and higher limits."
* This article has been translated by AI.
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