Seoul: Hana Financial Group and four other banking groups will provide 1 trillion won (US$680 million) worth of financial support for startups as part of their efforts to boost productive finance and help invigorate the venture industry, the country's financial regulator said Thursday.

According to Yonhap News Agency, the Financial Services Commission (FSC) stated that the five banking groups will funnel a combined 900 billion won into funds by 2029 that invest in startups, and provide 100 billion won worth of other financial support.

Local banks have been prodded to play a key role in boosting productive finance, as they have been mainly focused on extending loans backed by collateral, which many say has failed to support innovation in the economy.