President Moon Jae-in is calling for financial reform so that startups and venture companies can receive active support. 

In a speech at Industrial Bank of Korea headquarters Thursday, Moon said the current lending system is bringing about polarization in the finance sector and needs to be revamped so that startups and venture firms can get the support they need.

The president explained that startups face obstacles in getting loans because banks make lending decisions based on criteria such as past performance and real estate collateral.

He cited the success of firms like Amazon, Facebook and Google, and called on banks to assess the future growth potential of early stage companies, including their ideas and technologies.