Hana Financial Group Chairman Ham Young-joo / Courtesy of Hana Financial Group

Hana Financial Group plans to spend 100 trillion won ($70 billion) over five years to strengthen artificial intelligence (AI) financing and assist exporters, small businesses and low-income groups, it said Tuesday.

The initiative is part of the group's efforts to advance what it has termed a "Korea Premium" era wherein finance is elevated as a national growth driver beyond profit-seeking.

The drive is one of the largest private-led financial projects in Korea, with a focus away from household mortgage financing and toward more productive, inclusive and innovation-driven investments.

The group's bank, brokerage, capital, insurance and venture capital subsidiaries will be mobilized for the unified growth strategy.

Woori Financial announced a similar plan on Sept. 29.

"This is more than setting a target -- this is a statement of future direction," said Hana Financial Group Chairman Ham Young-joo. "We are committed to reshaping finance into a vehicle that truly supports people and progress."

Of the total planned expenditure, 84 trillion won will be spent to bolster "productive finance."

This includes 10 trillion won for early-stage investment into the Lee Jae Myung administration's National Growth Fund of 150 trillion won.

The government-driven fund seeks to channel private and institutional capital into high-potential sectors. Hana's contribution would constitute 13 percent of the 75 trillion won to be funded by the private sector.

Another 10 trillion won will be used to support venture funding and regional innovation.

A total of 50 trillion won will be allocated for targeted lending to high-growth industry players in AI, biotech, defense and advanced manufacturing.

Around 14 trillion won will be spent to assist small exporters and strengthen supply chain resilience, including foreign currency risk management and trade financing.

Meanwhile, of the remaining 16 trillion won allocated for "inclusive finance," 12 trillion won will be used to assist small business and self-employed borrowers, in the form of guarantees and debt relief.

Some 4 trillion won will be earmarked to provide financial programs for youth, low-income households and low-credit borrowers, as well as those with falling credit scores, with a focus on greater digital access and financial rehabilitation.

Hana also reiterated its commitment to raising shareholder return to 50 percent by 2027, aided by healthy capital buffers and strong corporate fundamentals.

Hana Financial to spend $70 bil. on AI, exports, inclusive finance - The Korea Times