"In the Era of Productive Finance... Capital Finance Must Expand Its Role in Supporting Future Industries"

Credit Finance Task Force of the Korea Credit Card Academic Society Holds Capital Future Vision Forum
Discussions Focus on Supporting Business Growth, Protecting Consumers, and Expanding Access to Finance
"Sustainable Financing Requires Institutional Improvements and Stronger Industry Capabilities"

The capital finance industry should move beyond a business structure centered on auto finance and strengthen its role in productive finance by supporting innovation in future industries and businesses, speakers said. The analysis highlighted the need for institutional support, including sharing residual value risk and improving capital regulations, to expand into asset-based finance for machinery and equipment and provide funding suited to each stage of a company’s growth.

Seo Jiyong, chairman of the Korea Credit Card Academic Society, delivers opening remarks at the 2026 Capital Future Vision Forum held on the 19th. Reporter Lee Seunghyung.

On October 19, the Credit Finance Task Force of the Korea Credit Card Academic Society held the "2026 Capital Future Vision Forum" at Bankers Hall in Seoul under the theme "The New Role of Capital Finance in the Era of Productive and Inclusive Finance." The forum was organized to address changes in industrial structures, growing demand for growth capital among businesses, and calls for stronger financial consumer protection and better access to finance.

Seo Jiyong, president of the Korea Credit Card Academic Society, said, "The capital finance industry should draw on its expertise to explore how it can support investment in equipment for future industries, growth financing for businesses, and consumers' diverse needs." He added, "I hope today's discussions will lead not only to declarations but also to practical initiatives and cooperation that can be put into action."

The first presentation discussed ways to expand the role of the capital finance industry beyond auto finance into asset-based finance for machinery and equipment, as well as corporate finance. Yoon Jongmun, a senior director at the Credit Finance Association's Credit Finance Research Institute, said that the share of leasing and installment financing in capital companies' total assets fell from 40% at the end of 2013 to 33% at the end of March this year, while the share of corporate loans rose from 26% to 36% and the share of investment assets increased from 7% to 16%.

"Asset-based finance differs from bank lending in its valuation of physical assets, management of assets during the contract period, and recovery and resale of those assets," Yoon said. He noted that domestic capital companies could apply the expertise they have developed in estimating residual values and managing assets in auto finance to industrial equipment, batteries, medical devices, and other areas. He particularly pointed out that although assets in future industries are expanding, especially in equipment for productive finance and future mobility, they carry residual value risk. He therefore proposed linking policy funding to leasing, sharing residual value risk, and expanding special provisions for leverage calculations.

He also said improvements were needed in rationalizing rental limits, allowing the sale of returned vehicles, and permitting insurance sales related to companies' core businesses. "Residual value risk is the missing link in productive finance," Yoon said. "The role of capital finance companies is to put a price on that risk, drawing on the asset-based finance expertise they have gained through auto finance."

Next, Kim Gyurim, a managing director at the KPMG Economic Research Institute, presented on "The Role and Challenges of Capital Finance in Supporting Business Growth and Innovation," saying that financing options should be combined in different ways depending on a company's growth stage and funding needs. Since companies need different forms of funding at each stage, from technology development and equipment purchases to increased production and business expansion, she said the industry should strengthen its ability to provide growth capital by using credit, investment, and lease financing.

As policy priorities, she proposed capital regulations calibrated to risk and funding structures suited to long-term corporate finance. Since loans, leases, and direct investments have different risk profiles, she said regulations and capital requirements should be reviewed according to each function, and long-term corporate finance requires funding and risk-sharing structures aligned with the financing term. She also stressed that rather than all capital companies following the same path, each company should determine the scope and pace of its expansion based on its expertise, capital, funding, and management capabilities.

"Capital finance companies are already shifting toward corporate and investment finance," Kim said. "Supporting business growth and innovation involves not only providing funds but also monitoring outcomes and managing risks. Sustainable corporate financing will be possible when institutional improvements go hand in hand with strengthening the industry's capabilities."

This content was produced with the assistance of AI translation services.