TLDR: KB Financial Group has launched a ‘Productive Finance Council’ to redirect its focus from traditional real estate-backed lending towards supporting high-growth sectors, including artificial intelligence and other advanced strategic industries. Chaired by Kim Seong-hyeon, CEO of KB Securities, the council will oversee the group’s participation in the government’s 150 trillion won National Growth Fund, with KB committing 10 trillion won. This initiative aligns with a broader government push for financial institutions to foster economic value creation.
Seoul, South Korea – KB Financial Group officially inaugurated its ‘Productive Finance Council’ on September 30, 2025, marking a significant strategic pivot towards fostering national economic growth through targeted investments in promising sectors. The council, announced on September 25, aims to expand ‘productive finance’ by channeling support into areas such as artificial intelligence (AI) and other advanced strategic industries.
Chaired by Kim Seong-hyeon, CEO of KB Securities, the council comprises key executives from across KB Financial Group’s subsidiaries, including KB Asset Management, KB Investment, KB Kookmin Bank, and KB Insurance. The diverse representation also includes management from finance, human resources, and research centers, ensuring a comprehensive approach to strategic direction and implementation.
This initiative is a direct response to the South Korean government’s call for financial institutions to shift away from traditional, collateral-heavy lending models. It aligns with President Lee Jae-myung’s vision for a ‘major shift from pawnshop-style operations—securing collateral, lending money, and collecting interest—to productive finance.’ The council’s immediate agenda includes discussing support measures for the government’s ambitious 150 trillion Korean won ‘National Growth Fund.’ KB Financial Group is expected to contribute 10 trillion won to this fund, mirroring commitments from other major financial groups.
Within the framework of the National Growth Fund, KB subsidiaries will assume distinct roles. KB Asset Management, KB Investment, and KB Securities will act as General Partners (GPs), responsible for managing the investments. Concurrently, KB Kookmin Bank, KB Insurance, and KB Securities will serve as Limited Partners (LPs), providing the necessary capital.
To facilitate this transition, KB Kookmin Bank is establishing specialized units: an ‘Advanced Strategic Industry Review Unit’ dedicated to evaluating high-tech strategic industries and a ‘Growth Finance Promotion Unit’ to bolster productive finance initiatives. The bank also plans a long-term restructuring of its portfolio to reduce its reliance on real estate collateral loans. Furthermore, the group intends to recruit external experts in critical advanced industries like AI, semiconductors, and biotechnology to enhance its loan review capabilities.
Yang Jong-hee, Chairman of KB Financial Group, underscored the philosophical underpinnings of this shift at the 17th-anniversary ceremony, stating, ‘Finance must become a force that creates social value.’ He emphasized the group’s commitment to ‘continue to pursue inclusive finance to ignite new hope for more people, including small business owners and youth.’ In another internal meeting, Chairman Yang reiterated, ‘Finance has a destined role to efficiently allocate growth capital and connect it to social value creation,’ asserting that ‘the transition to productive finance is the destiny of all financial companies.’
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Beyond productive finance, KB Financial Group is also expanding its inclusive finance efforts, setting a target of 50 trillion won for investments and loans in environmental, social, and governance (ESG) areas by 2030. The group will also strengthen strategic cooperation with policy finance institutions such as the Korea Development Bank and the Korea Credit Guarantee Fund to maximize its impact on national economic development.
