NH NongHyup plans inclusive finance unit as major financial groups step up support

Major financial holding companies are reorganizing dedicated units and expanding support for low-income and vulnerable groups ahead of the financial regulator's introduction of a comprehensive inclusive finance evaluation system.

According to financial industry sources, the groups are either establishing new inclusive finance divisions or strengthening group-level management frameworks.

NH NongHyup Financial Group is reviewing plans to create an "inclusive finance division" (tentative name) within NongHyup Bank through a reorganization next year, along with appointing a group-level chief inclusive finance officer. NongHyup Financial has operated a special committee on productive and inclusive finance directly under its chairman since January.

Hana Financial Group became the first in the industry to appoint a chief inclusive finance officer last August and has since held monthly inclusive finance council meetings attended by executives from its affiliates. Shinhan Financial Group has formed a productive finance promotion committee and secretariat, while Woori Financial Group is pursuing a five-year inclusive finance plan tied to its "Future Co-Growth Project." KB Financial Group manages related performance through KB Kookmin Bank's inclusive finance division.

Alongside the organizational overhaul, the banks are also expanding financial support for low-income and vulnerable customers.

Hana Bank plans to increase support through specialized Saeheuimang Holssi products and Haetsal Loan Youth linkages next year, and to broaden access to non-face-to-face inclusive finance services for sole proprietors. Shinhan Bank will work with the Korea Inclusive Finance Agency to establish a combined support center in Gangwon Province that offers financial, welfare and employment services under one roof.

NongHyup Bank will expand products targeting mid- to low-credit borrowers, including mid-rate living stability loans, business closure cost support loans and refinancing products for second-tier financial institutions. Woori Bank also plans to gradually raise its inclusive finance supply targets and regularize debt adjustment support.

The five major financial groups supplied a combined 16 trillion won ($12 billion) in inclusive finance as of the end of September. KB Financial Group disbursed 3.5 trillion won, Shinhan Financial Group 3.48 trillion won, Hana Financial Group 3.1 trillion won, Woori Financial Group 2.83 trillion won and NH NongHyup Financial Group 3.09 trillion won.

Meanwhile, the Financial Services Commission finalized a comprehensive inclusive finance evaluation framework for the banking sector on Wednesday. The system divides 17 banks into three groups — large, small-to-midsize and internet-only banks — and assesses them across five areas: governance, funding supply, debt adjustment, social consideration and non-financial support.

Banks will be rated on a four-tier scale: outstanding (S), good (A), average (B) and insufficient (C). Starting with 2027 performance, banks rated outstanding and good will receive a 20 percent and 10 percent reduction, respectively, in their Korea Inclusive Finance Agency contributions, while banks rated insufficient will face a 20 percent surcharge.