Shinhan Financial Group Leads in Inclusive Finance Initiatives

Shinhan Financial Group is gaining attention as the fastest-moving financial group in response to the government's inclusive finance initiatives. Under Chairman Jin Ok-dong, the group has revived the 'microfinance' program, previously used as a policy finance tool, to differentiate itself in the market.

As of May 7, Shinhan Financial has actively integrated microfinance into its inclusive finance strategy, enhancing its presence. Microfinance provides low-interest startup and operational funds to low-income individuals without requiring collateral or guarantees, aimed at supporting financially vulnerable groups. Although launched during the Lee Myung-bak administration and expanded under the Moon Jae-in administration, its significance had diminished in recent years.

The current government had not considered utilizing microfinance, but Shinhan Financial has adopted it as a tool for inclusive finance. Chairman Jin recognized its potential during a review of existing inclusive finance systems, suggesting, "Let’s use existing systems efficiently" instead of creating new ones.

This approach has been praised for balancing speed and effectiveness, reducing the time needed to design new systems while clearly defining the support targets. Following Shinhan Financial's proposal, other financial groups are reportedly exploring similar models.

The proactive efforts of Chairman Jin and Vice Chairman Ko Seok-hun have been noted, with the group quickly generating ideas in response to messages from financial authorities. Shinhan Financial was the first to propose debt forgiveness for disabled individuals, reflecting this trend.

Shinhan Financial plans to contribute 100 billion won to the Shinhan Microfinance Foundation to support diligent repayers and develop new policy loan products. Additionally, it aims to convert all diligent repayment customers from savings banks to bank products within the first half of the year and operate cooperative finance loan products using its platform, distinguishing itself from other financial groups.

A financial authority official stated, "Shinhan Financial is notably quick in its responses and frequently proposes ideas, making it one of the active players in inclusive finance."