Major domestic brokerages will supply 22.5 trillion won in risk capital over the next three years and move toward a major shift to “productive finance.”

The Financial Services Commission held a meeting of the “productive finance consultative body for the financial industry” on Tuesday at the Government Complex Seoul in Jongno district, Seoul, chaired by Vice Chairman Kwon Dae-young (권대영).

At the meeting, financial authorities and the financial sector agreed to invest a total of 1,240 trillion won in productive finance over the next five years, comprising 614 trillion won from the private sector and 626 trillion won in policy funds.

Of that, seven large brokerages with equity capital of 4 trillion won or more will supply 22.5 trillion won in risk capital over the next three years and take responsibility for financing by companies’ stages of growth.

In opening remarks, Kwon called for a fundamental improvement in the financial sector’s underlying structure. “Finance must not remain on the familiar old road of collateral and guarantees,” he said. “It must move toward a path that opens a new future by channeling funds to advanced industries, startups and regions,” he added.

Kwon said evaluation practices focused on simple performance should be overhauled.

“Real productive finance is possible only when financial companies can themselves assess industries and companies’ technological capabilities and competitiveness,” he said. He asked for a complete redesign of key performance indicators, compensation systems and risk management structures so the goal can become one for the entire organisation.

The meeting also unveiled major brokerages’ detailed implementation plans.

Korea Investment & Securities will increase its supply of risk capital with two pillars: work on investment management accounts, or IMA, and participation in the National Growth Fund.

An IMA is a performance-linked account that pools and manages customer deposits and distributes profits. The plan is to actively use funds raised through the accounts for corporate finance.

It will also expand a dedicated KOSDAQ organisation and research staff to strengthen a growth ladder system spanning from start-up to initial public offering.

KB Securities will sharply shift the centre of its business portfolio from existing bonds and loans, or credit provision, to equity investment.

In particular, it will introduce a “shared growth payment” system that pays small and medium-sized companies using accounts receivable issued by large companies, in a first for the industry, to help funding flows for small and mid-sized firms.

It also plans to join the National Growth Fund as a general partner to lead investment in advanced strategic industries. To do so, it has completed organisational changes, including establishing a “productive finance promotion team” within the investment banking division this month and hiring analysts dedicated to semiconductors and AI.

The FSC plans to regularise the consultative body and check implementation on a monthly, project-by-project basis.

Kwon said the government would provide immediate support if difficulties on the ground are conveyed without being bound by formality. He also called for concrete success cases that work in the field, rather than plans aimed at showing totals.