KB Financial Group announced Monday it has launched the “KB Innovation Finance Council” to provide investment and credit support to innovative startups as well as small and medium-sized enterprises.

The council, consisting of 12 executive members from KB affiliates including KB Investments, KB Securities, and KB Kookmin Bank, has been created to “revitalize venture capital and innovative finance among startups and SMEs,” said the group.

Outlining various ways the council will provide support, KB Investments announced plans to create a total of 2 trillion won ($1.7 billion) worth of venture funds over the course of five years.

KB Securities will actively invest in undervalued enterprises listed on the Kosdaq market and subsequently provide 10 billion won worth of corporate venture capital funds for them to scale up.

KB Kookmin Bank, on the other hand, will launch exclusive intellectual property security loans.

“The council will provide tailored services for innovative companies with growth potential,” said Yoon Jung-kyoo, chief of KB Financial, who will also head the newly created council.

By Cho Hyee-su (chohyeesu@heraldcorp.com)