The chief of the nation’s monetary regulator on Monday known as on banks to play a higher function in productive finance.
In a ceremony marking the launch of a preparatory physique for a mega-sized public-private fund to put money into high-tech sectors, Lee Eog-weon, chairman of the Monetary Providers Fee (FSC), mentioned banks want to alter their lending practices by funneling extra money into progressive, productive sectors.
“Banks ought to dramatically change their decadeslong enterprise practices and mindsets,” Lee mentioned.
“They’re nonetheless reaping huge curiosity earnings, however their roles in boosting financing for high-risk sectors are nonetheless weak,” Lee mentioned.
In September, President Lee Jae Myung introduced that the nation will create a 150 trillion-won ($120 billion) public-private fund, set to be launched early subsequent month, to assist funding in synthetic intelligence (AI) and different superior industries.
The so-called “Public Progress Fund,” one in every of his key financial pledges, goals to speed up AI adoption throughout sectors and channel sources into key industries, together with semiconductors, secondary batteries, biotechnology, vitality, hydrogen, protection, vaccines and robotics, over the subsequent 5 years.
It’s going to include a 75 trillion-won government-guaranteed fund for strategic industries — set to launch in December — and 75 trillion received in private-sector funding, encompassing direct and oblique financing, government-backed bonds and low-interest mortgage applications.
