53.1% of Korea Development Bank funding for small firms went to Seoul capital area
In short
Of the 47.2814 trillion won the Korea Development Bank supplied to small and medium-sized enterprises from 2023 to July this year, 25.1127 trillion won (53.1%) went to Seoul, Gyeonggi and Incheon, according to bank data obtained by Democratic Party lawmaker Min Byung-duk (민병덕). Total annual supply fell 17.7% between 2023 and 2025, with Sejong down 95.1% while Seoul rose 3.5%. The bank said the share reflects where companies and economic activity are concentrated and was not intentional.
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More than half of the funding the Korea Development Bank supplied to small and medium-sized enterprises went to the Seoul capital area, according to data the bank gave to Min Byung-duk (민병덕), a Democratic Party lawmaker on the National Assembly's National Policy Committee (정무위원회), Yonhap reported on October 9. Of 47.2814 trillion won supplied from 2023 to July this year, 25.1127 trillion won, or 53.1%, went to Seoul, Gyeonggi and Incheon. [ 1 , 2 , 3 ]
Seoul received the most, 12.4529 trillion won (26.3%), followed by Gyeonggi with 11.3512 trillion won (24.0%) and Incheon with 2.8%. Yonhap and Seoul Shinmun put Incheon's amount at 1.3086 trillion won; Maeil Business gave 1.0386 trillion won. Outside the capital area, South Chungcheong received the most, 3.4025 trillion won (7.2%), about a quarter of Seoul's total. It was followed by South Gyeongsang (6.2%), North Chungcheong (5.1%), North Gyeongsang (4.9%) and Busan (4.6%). South Jeolla, Gwangju and North Jeolla received 3.1%, 3.0% and 2.9%, Sejong 2.6% and Daegu 2.1%. Daejeon, Ulsan and Gangwon each received 1.5%, and Jeju 333.5 billion won, or 0.7%. [ 1 , 2 , 3 ]
The bank's overall supply to small firms has shrunk each year, and Yonhap and Seoul Shinmun reported that the decline was relatively steeper outside the capital area. Supply fell from 14.4676 trillion won in 2023 to 11.9055 trillion won in 2025, a drop of 2.5621 trillion won (17.7%). Sejong saw the largest fall, from 1.0343 trillion won to 50.5 billion won, down 95.1%. Seoul's supply rose 3.5% over the same period, from 3.5545 trillion won to 3.6806 trillion won. [ 1 , 2 , 3 ]
Min said the bank's funding for small firms was concentrated in the capital area and had fallen sharply elsewhere, and that the regional balancing function of policy finance should be strengthened to revive regional small firms and local economies. [ 1 , 2 , 3 ]
The Korea Development Bank said the capital-area share reflected the country's industrial structure, in which companies and economic activity are concentrated in the capital area, and funding demand, and that it had not intentionally concentrated funds there. Citing Statistics Korea, it said the capital area accounted for 52.8% of nominal regional GDP in 2024, so its funding share is similar to the share of the national economy. [ 1 , 2 , 3 ]
Why it matters
The lawmaker called for the regional balancing role of policy finance to be strengthened to support regional small firms and local economies. The bank argues its lending share tracks the capital area's 52.8% share of regional GDP, so the dispute is over whether the distribution reflects demand or a gap in policy finance.
Key facts
- The Korea Development Bank supplied 47.2814 trillion won to small and medium-sized enterprises from 2023 to July this year. [ 1 , 2 , 3 ]
- 25.1127 trillion won, or 53.1%, went to Seoul, Gyeonggi and Incheon. [ 1 , 2 , 3 ]
- Seoul received the most, 12.4529 trillion won (26.3%), followed by Gyeonggi with 11.3512 trillion won (24.0%). [ 1 , 2 , 3 ]
- Outside the capital area, South Chungcheong received the most, 3.4025 trillion won (7.2%), about a quarter of Seoul's amount. [ 1 , 2 , 3 ]
- Annual supply fell from 14.4676 trillion won in 2023 to 11.9055 trillion won in 2025, a 17.7% drop. [ 1 , 2 , 3 ]
- Over the same period Sejong's supply fell 95.1%, from 1.0343 trillion won to 50.5 billion won, while Seoul's rose 3.5%, from 3.5545 trillion won to 3.6806 trillion won. [ 1 , 2 , 3 ]
- Jeju received 333.5 billion won, 0.7% of the total. [ 1 , 2 ]
Confirmed by several sources
- 53.1% of the Korea Development Bank's funding for small and medium-sized enterprises from 2023 to July this year went to Seoul, Gyeonggi and Incheon. [ 1 , 2 , 3 ]
- Sejong recorded the largest decline, 95.1%, between 2023 and 2025, while Seoul's supply rose 3.5%. [ 1 , 2 , 3 ]
- Min Byung-duk said the bank's funding was concentrated in the capital area and had fallen sharply elsewhere, and called for the regional balancing function of policy finance to be strengthened. [ 1 , 2 , 3 ]
- The Korea Development Bank said the capital area accounted for 52.8% of nominal regional GDP in 2024, so its funding share is similar to the share of the economy. [ 1 , 3 ]
Still unclear
- Incheon's total for the period. Yonhap and Seoul Shinmun give 1.3086 trillion won, while Maeil Business gives 1.0386 trillion won; all three give the same 2.8% share.
- Whether the capital-area share reflects demand or a gap in policy finance. The lawmaker calls it a concentration that should be corrected; the bank says it mirrors the capital area's share of the economy and was not intentional.