In his New Year’s message for 2025, Chairman Kang Seog-hoon of Korea Development Bank (KDB) announced a plan to provide 100 trillion won in financial support to high-tech strategic industries over the next three years.
Korea and KDB need to continue the “Miracle of the Han River” and discover new growth drivers, Kang emphasized in his message. He presented four goals for the KDB to focus on in 2025.
First of all, Kang brought up supporting high-tech strategic industries.
The global economic paradigm is rapidly changing, including the emergence of AI, intensifying competition in high-tech strategic industries such as semiconductors, the growing importance of industrial policies and economic security, according to Kang.
“In particular, a battle for control of high-tech strategic industries has recently gone beyond competition among companies and has become a battle for economic security,” Kang added.
KDB will launch the Korea Rebound Program, which will provide a total of 100 trillion won in financial support over the next three years, to serve as an anchor in supporting high-tech strategic industries.
The state-run bank will raise 10 trillion won in capital from government contributions and its own profits. It will invest 100 trillion won in high-tech strategic industries, led by KDB’s Regional Growth Division and Corporate Finance Division.
Second, KDB will build a stable profit generation base to conduct sustainable policy finance. “Sound financial structure and active policy financing should go hand in hand,” Kang said.
“We have already experienced some negative impacts on our organization when this balance is disrupted.”
Government funding is the easiest way to raise funds for expanding policy finance, such as supporting high-tech strategic industries. “But there is a limit to how much government funding you can, so it is essential to secure enough operating profits,” Kang explained.
KDB’s Innovative Growth Finance Division, Global Business Division, and Capital Markets Division should strengthen their roles as profit centers to increase profits while minimizing direct market frictions, Kang said.
In addition, the Review and Valuation Division, Risk Management Division, Planning Management Division and Treasury Management Division should closely examine profit and loss, proactively prevent poor business results, and minimize the volatility of non-recurring profit and loss arising from non-financial affiliates and external factors.
In addition, KDB will closely monitor market conditions and the company’s funding needs and tightly manage liquidity in preparation for expanding uncertainties in the Korean and overseas financial markets.
The third was to create an organizational culture where all employees can grow and enjoy working at KDB.
“During my inauguration ceremony, I mentioned that I will strongly support you in creating an environment where you can become the best experts in your respective fields,” Kang said. “In order to respond to new environmental changes and understand future new technologies and industries, we need to constantly develop ourselves.”
“KDB employees are encouraged to work together to increase their own capabilities. The management including myself will support them and pump up their efforts to develop human resources,” Kang explained.
Fourth is strengthening crisis response capabilities in a timely manner. In the first half of 2025, the Korean economy and KDB may face internal and external crises, according to Kang.
“Given the stability of Korea’s macroeconomic and foreign trade, the soundness of financial institutions, and the sufficiency of external assets, the likelihood of a crisis is not high, and even in the unlikely event of a crisis, we will be able to appropriately deal with it. However, the increased uncertainty caused by the possibility of an economic crisis is not without a vicious cycle of interactions that can lead to an actual crisis.”
“All KDB employees will need to continue to closely watch Korea’s economic situation and make every effort to enhance crisis response capabilities in their respective areas,” Kang stressed.
Since its foundation in 1954, KDB has supplied long-term capital necessary for the country’s industrial development, effectively functioning as a market safeguard in times of crises.
