Shinhan Financial Launches 5 Trillion Won Inclusive Finance Initiative

Shinhan Financial Group is launching a 5 trillion won "Inclusive Finance 2.0" project.

On June 10, Shinhan Financial held its fifth meeting of the Group Productive Finance Promotion Team at TP Tower in Yeouido, Seoul.

Having achieved its inclusive finance target of 3 trillion won ahead of schedule this year, Shinhan plans to expedite its 1.5 trillion won allocation for next year, aiming to provide a total of 4.5 trillion won in inclusive finance by the end of the year. Specifically, this includes 2.9 trillion won for low-interest loans aimed at the underprivileged, 1.45 trillion won to support small businesses, and 150 billion won to expand the scope of microfinance and cooperative refinancing loans.

Starting July 1, the cooperative refinancing loan program will be extended to all customers of savings banks, a benefit previously available only to Shinhan Savings Bank customers. The maximum loan limit will be set at 100 million won, with a repayment period of up to 10 years. The product lineup will also be expanded, including the recently launched "Emergency Loan for Basic Pension Recipients," support for asset formation for diligent microfinance borrowers, cashback on Sunshine Loan guarantee fees, and tailored inclusive finance products for seniors.

Additionally, Shinhan will write off 500 billion won in long-term delinquent loans, with 330 billion won to be addressed in the first half of the year alone. In February, Shinhan Bank proactively wrote off 57.6 billion won in long-term delinquent loans and plans to write off an additional 120 billion won. Shinhan Card will also write off 150 billion won in long-term delinquent loans that were previously excluded from the new leap fund support. Jeju Bank and Shinhan Savings Bank will participate in writing off approximately 6 billion won in delinquent loans. Shinhan Bank is also continuing to adjust interest rates, including expanding preferential rates for New Hope Loans.

The practice of mechanically extending the statute of limitations will also be improved. For debts older than five years, extensions will generally be blocked, and debt restructuring will be prioritized. If an extension is unavoidable, a new procedure for "re-examination after three years" will be established to break the cycle of long-term delinquency.

Furthermore, the "Alternative Credit Evaluation Model for the Underprivileged" will be utilized to expand support for low- to mid-credit borrowers, which will also be applied to the evaluation criteria for new mid-interest loan products set to be launched in the third quarter.

Shinhan Financial Chairman Jin Ok-dong stated, "'Inclusive Finance 2.0 ON' goes beyond simple support; it is a way for financial companies to fulfill their social responsibilities in a tangible manner. We will repay the trust of our customers and society by reducing financial blind spots and acting as a corporate citizen that fulfills its role in the social safety net."