KB Financial Group held the first meeting of the “KB New Deal and Innovation Finance Council in 2021” with the attendance of Chairman Yoon Jong-kyu (center) and heads of major affiliates. (Photo: KB Financial Group)

On April 9, KB Financial Group’s New Deal and Innovation Finance Council held a meeting with executives of major affiliates, including Group Chairman Yoon Jong-kyu and KB Kookmin Bank President Huh In, for the first time in 2021.

KB Financial Group has expanded the KB Innovation Finance Council to the KB New Deal and Innovation Finance since July 2020.

Since then, the group has been pushing to provide a total of 76 trillion won in financial support, including 66 trillion won for innovation finance by 2023 and 10 trillion won for the Korean New Deal by 2025.

Participants focused on the current status of the group’s financial support by affiliates in 2020 and discussed plans for the successful promotion of the Korean New Deal.

KB Financial Group allocated 3.2 trillion won to the Korean New Deal in 2021. As of the end of March, the group reached 68 percent of its target by spending a total of 2.2 trillion won.

That included 175.1 billion won in financial support for the District Heating/Cooling Project for Seokmun National Industrial Complex (KB Kookmin Bank) and 280 billion won in financial support for recycling companies.

Such achievements are quite meaningful in that ESG management empowered KB Financial Group’s leadership to expand to the Green New Deal sector from the new and renewable energy investment market.

Last year, KB Financial Group served as a lead manager of big projects in the three major renewable energy sectors — solar power, wind power and fuel cells.

The big projects included the Saemangeum Ground Solar Power District 3 Project, the Hwasun Geumseongsan Wind Power Project and the Godeok Fuel Cell Power Generation Project.

KB Asset Management was also selected as an entrusted management company of the policy-type New Deal Fund in February in recognition of its excellent track record and asset management capabilities in the renewable energy sector.

KB Financial Group plans to contribute to the promotion of the first policy-type New Deal Fund by creating and managing the fund with supports at the group level such as its affiliates’ active participation in investment in the fund.

KB Financial Group is making various efforts with a focus on key agendas such as more credit support for innovation-powered companies, scaling up investment in innovation-based growth, startup support and job creation and fostering startups and finance-linked platform innovation for innovation finance.

Major tasks are expanding technology financing and asset/IP-backed loans, consulting for small business owners and self-employed people and promoting KB Bridge (policy fund platform). As of April 12, its progress stood at 32 percent.

“The Korean New Deal really matters to financial companies as it can enable them to find a new way for the future in the New Normal era,” said Yoon Jong-kyu, chairman of KB Financial Group.

“We will direct our group’s capabilities on Korean New Deal projects including new and renewable energy projects.” Meanwhile, KB Financial Group announced on April 5 that the group joined the Partnership for Carbon Accounting Financials (PCAF).

The PCAF is a collaboration between financial institutions worldwide to enable harmonized assessments and disclosures of greenhouse gas emissions financed by loans and investments.

With more than 100 banks and investors from five continents, the group is rapidly expanding in North America, Latin America, Europe, Africa and Asia Pacific.

KB Financial Group will not only accelerate the transition to a low carbon economy by focusing on carbon emissions reduction and efficient energy consumption in its own operations, but also lead the green finance ecosystem by increasing investments and lending in renewable energy and green sectors.

As stakeholders’ interest in the environment increases, consideration of environmental risk is becoming more important in the financial sector.

KB Financial Group aims to strengthen its management of environmental risks by advancing climate change strategy and expanding green financial services.

“We are pleased to welcome KB Financial Group to the 110+ financial institutions globally that participate in PCAF,” said Giel Linthorst, executive director of the PCAF.

 
“By committing to measure and disclose the emissions of their portfolios to support meeting the goals of the Paris Climate Agreement, KB Financial Group shows its climate leadership not only in the Asia-Pacific region, but also globally.”