Shinhan Bank Signs Business Agreement with Ministry of Industry to Establish Technology Innovation Specialized Fund

[Asia Economy Reporter Haeyoung Kwon] On the 11th, Shinhan Bank signed a business agreement with the Ministry of Trade, Industry and Energy at the Glad Hotel in Yeouido, Yeongdeungpo-gu, Seoul, to establish a technology innovation specialized fund and to be selected as the dedicated bank for the 3rd phase of industrial technology funds.

The technology innovation specialized fund is the first fund in Korea established to support research and development (R&D) and other technology innovations of small and medium-sized enterprises (SMEs) and mid-sized companies. It is created with a total of 280 billion KRW in pure private capital, and Shinhan Bank will invest 100 billion KRW in this fund.

With the establishment of this fund, direct investment will be made in domestic technology innovation manufacturing companies that are in urgent need of funds, moving away from the existing passive support centered on loans, enabling practical support that companies need. It is expected to be a great help to domestic technology innovation manufacturing companies in manufacturing, parts, and equipment sectors that are struggling due to the recent spread of the novel coronavirus infection (COVID-19).

Shinhan Bank has been selected as the dedicated bank for industrial technology funds operated by the Ministry of Trade, Industry and Energy and will manage and operate industrial technology funds worth 5 trillion KRW until 2022. Since 2012, the Ministry has designated dedicated banks to operate an exclusive system (RCMS) aimed at transparent and efficient execution of the national R&D budget. Shinhan Bank was selected as the dedicated bank for the 3rd phase following its selection as the 2nd phase operator in 2017.

A Shinhan Bank official said, "We are honored to participate in the technology innovation specialized fund that invests in the growth of technology innovation companies," adding, "We will use this fund establishment as an opportunity to invest in the technology development of more companies so that the financial sector can contribute to making Korea a technological powerhouse."

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