The group said existing corporate credit rating methods in the financial sector are largely built around stability assessments based on past performance, such as financial results, making it difficult to fully reflect the future growth potential of technology-based companies and firms in emerging industries.
Shinhan said the new system will go beyond finance-centered evaluations by incorporating forward-looking competitiveness factors, including a company’s technology capabilities, business model and industry outlook.
Unlike conventional approaches that focus mainly on the likelihood of default, the system will apply criteria that consider growth stage and industry characteristics for companies with high growth potential, including venture, advanced-technology and innovative firms.
In addition to existing finance and transaction data, Shinhan said it will use information on a company’s growth stage along with traditional financial data and alternative data to comprehensively analyze business viability, market growth potential and technological competitiveness.
A Shinhan Financial official said the project will create “a new corporate evaluation framework” to more precisely assess companies with strong technology and growth potential, adding that the group will expand “productive finance” to support innovative companies and national strategic industries based on insight into industrial and future changes.
* This article has been translated by AI.
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