KB Financial Group has donated a 10 billion won cooperation fund to support small and medium-sized enterprises and small merchants in their digital, green and safety transitions.

KB Financial said on June 5 it held a ceremony with the Ministry of SMEs and Startups and the Korea Commission for Corporate Partnership to contribute 10 billion won to the fund and will 추진 cooperation projects.

The fund was set up to broaden support beyond partners mainly within large companies' supply chains to include SMEs and small merchants. KB Financial plans to help strengthen their competitiveness through support for AI transition, green transition and safety transition, and by investing in regional social solidarity economy firms.

It will provide 2 billion won for the AI transition segment. It will offer AI-based digital solutions to regional manufacturers and support small merchants with smart ordering and customer analytics marketing systems to help revitalise regional industry and commercial districts.

It will put 3 billion won into the green transition segment. It will provide climate finance education for SMEs and support consulting so that facilities, the environment and overall management can meet the standards of the Korean Green Taxonomy.

It will provide 2 billion won for the safety transition segment. It will offer consulting to help SMEs with safety technology expand sales channels, and provide micro businesses with AI CCTV, sensor-based safety detection systems and industrial safety consulting free of charge.

It will also invest 3 billion won in the cooperation fund's master fund for impact investment in regional social solidarity economy firms and social ventures. The investment targets are companies that create social value, such as revitalising local economies, creating jobs and supporting vulnerable groups.

This contribution is the first case of the cooperation fund investing in a venture fund. Investment proceeds will flow back into the cooperation fund and be used for reinvestment.

Han Sung-sook (한성숙), the minister of SMEs and Startups, said, "Amid rapid changes at industrial sites, cooperation and co-prosperity among large companies, SMEs and the financial sector are more important than ever." She added, "I hope KB Financial's contribution will serve as a catalyst for spreading a culture of cooperation and co-prosperity in the financial sector."

Yang Jong-hee (양종희), chairman of KB Financial Group, said, "The cooperation fund was set up to support SMEs and small merchants so they can build future competitiveness through AI, green and safety transitions and grow together with local communities." He added, "We will continue to contribute to the sustainable growth of SMEs and small merchants and to revitalising local economies based on finance's social responsibility."