KB Financial Group will expand financial support for advanced strategic industries such as semiconductors, physical AI and AI data centres. It plans to shift its credit screening system from a focus on past financial performance to future value, including technological capabilities and growth potential. It also plans to create a 150 billion won fund to foster unicorns.

KB Financial said on July 27 it held the fourth KB Financial Group Productive Finance Council meeting on July 24 and discussed the status of its productive finance initiative and ways to strengthen support systems for advanced strategic industries.

Participants discussed directions for financial support linked to the government’s three mega projects for South Korea’s major leap forward - semiconductors, physical AI and AI data centres - and a policy to expand the National Growth Fund.

KB Financial decided to draw up financial support measures for semiconductor and power infrastructure, companies related to physical AI, and AI data centres by leveraging its corporate and investment banking capabilities.

It will also identify innovative small and medium-sized regional companies centred on CIB centres, which are bank and brokerage collaborative branches specialising in corporate finance built in major hubs nationwide. It plans to strengthen funding for key regional industries by expanding comprehensive financial support such as lending, investment and capital market linkages.

It will also shift its corporate credit review methods from focusing on financial statements and past performance to a future value-based approach that reflects advanced technological capabilities and growth potential.

It will establish a Group Advanced Strategic Industry Study Forum to raise understanding of advanced industries within the group. The management research institute, research centres and sales and screening organisations will participate and conduct industry analysis, case studies and seminars by internal and external experts.

It is also pushing to form the KB National Growth Unicorn Scale-up Fund to support unicorn companies in advanced industries.

The fund will be created at 150 billion won, with KB Financial affiliates providing all the capital. KB Securities’ PE Growth Investment Division will manage it and invest in companies in AI, semiconductors, secondary batteries, aerospace, mobility, robots and bio.

KB Financial plans to expand the supply of funds by growth stage for innovative companies by linking policy finance from the National Growth Fund with the group’s own investment capabilities.

Kim Sung-hyun (김성현), head of KB Financial’s CIB Market Division, said responding to national growth strategies such as the three mega projects and the expansion of the National Growth Fund is both finance’s social role and a new growth opportunity for KB Financial. He said the group will support the growth of advanced strategic industries and innovative companies.