Shinhan Bank Supports Operating Funds for Overseas Subsidiaries of SMEs Affected by COVID-19

Korea Trade Insurance Corporation and SMEs Overseas Subsidiaries Financial Support Agreement for COVID-19 Damage

[Asia Economy Reporter Kwon Haeyoung] Shinhan Bank has expanded the scope of financial support for companies affected by the novel coronavirus infection (COVID-19) to overseas locations.

On the 12th, Shinhan Bank announced that it signed a business agreement with the Korea Trade Insurance Corporation at the Korea Trade Insurance Corporation headquarters located in Jongno-gu, Seoul, to provide financial support for overseas local subsidiaries of small and medium-sized enterprises (SMEs) and mid-sized companies affected by COVID-19.

At the signing ceremony held on the 10th, attended by Jin Okdong, President of Shinhan Bank, Lee Inho, President of Korea Trade Insurance Corporation, and officials from both organizations, the two parties agreed to cooperate to facilitate smooth financial support for overseas local subsidiaries of SMEs and mid-sized companies currently facing difficulties in fund management. The Korea Trade Insurance Corporation will actively support the subscription of overseas business finance insurance to reduce the risks Shinhan Bank must bear during the loan process, and Shinhan Bank will provide working capital loans to overseas local subsidiaries of SMEs and mid-sized companies using this as collateral.

Overseas business finance insurance is a product where the Korea Trade Insurance Corporation compensates financial institutions for losses if a company that received overseas business funding from the financial institution is unable to repay the principal and interest of the loan.

Shinhan Bank, which operates a total of 157 networks in 20 countries overseas, plans to take a more active role in supporting financing for overseas local subsidiaries of domestic companies through this business agreement. In particular, Shinhan Bank has the largest network among domestic commercial banks in Southeast Asian regions such as Vietnam and Cambodia, where domestic companies are actively expanding.

A Shinhan Bank official said, "This business agreement was promoted to help companies expanding overseas that are struggling due to the global spread of COVID-19," adding, "We will take the lead in supporting SMEs and mid-sized companies financially through various methods and practice warm finance not only to overcome the COVID-19 crisis but also beyond."

This content was produced with the assistance of AI translation services.