Chairman Jo Yong-byeong's Generous Support for 'K-New Deal'... Shinhan Financial Group Invests a Total of 93 Trillion Won

Shin Yong-byeong, Chairman of Shinhan Financial Group, is holding a video conference with group company CEOs on the 7th in the conference room of Shinhan Financial Group headquarters to strengthen the execution of the 'Shinhan N.E.O Project'.

[Asia Economy Reporter Kangwook Cho] Cho Yong-byeong, Chairman of Shinhan Financial Group, will invest over 90 trillion won to actively support the government’s ‘Korean New Deal Policy.’ This will be done through the so-called ‘Financial New Deal Policy,’ known as the ‘Shinhan N.E.O. (New Economy Opportunity) Project.’ Chairman Cho is personally leading the project as its chairman. He emphasized, “We will accelerate the digitalization of finance to establish national infrastructure and promote convergence between finance and other industries to lead the creation of a new industrial ecosystem.”

On the 7th, Shinhan Financial held a group CEO video conference attended by Chairman Cho and CEOs of group companies to finalize and announce these plans to strengthen the execution of the ‘Shinhan N.E.O. Project.’ Shinhan Financial set three core directions for supplying funds related to the Korean New Deal: ▲ Financial support for new growth industries ▲ Leading new digital finance ▲ Creating a new growth ecosystem. Based on these, they specified detailed tasks such as ▲ Building eco-friendly and digital infrastructure ▲ Creating a digital ecosystem ▲ Discovering startups.

To fulfill its role as a New Deal finance supplier, Shinhan Financial plans to inject about 26 trillion won over four years starting this year (16 trillion won in innovation loans, 1 trillion won in innovation investments, 9 trillion won in green finance?5 trillion won in loans, 4 trillion won in investments). This amount is 6 trillion won more than the 20 trillion won announced in June. They will also combine indirect supply methods by creating funds from private capital to supply funds to new growth industries and direct support for discovering and nurturing startup companies.

By group company, Shinhan Bank will expand support for promising technology sector companies through technology credit evaluation (TCB), intellectual property (IP), and movable collateral loans. Additionally, using the group’s social value measurement system, ‘Shinhan Social Value Measurement Framework (SVMF),’ they plan to create various New Deal-related specialized financial products, including those supporting job-creating companies, to supply loans.

Shinhan Investment Corp. will build a basic infrastructure to strengthen investments in innovative companies in fields such as bio and advanced materials. To this end, they will enhance New Deal-related industry and company analysis using their own research capabilities and refine intangible asset evaluations to expand the pool of companies eligible for New Deal investment support. They are also considering providing K-New Deal-related investment information to investors through shared platforms and supplying financial investment products linked to the ‘K-New Deal Index.’

Shinhan Life Insurance and Orange Life plan to expand collaboration in the group’s healthcare business, including launching a healthcare platform. They also plan to further increase eco-friendly investments such as renewable energy and smart industrial complexes.

Shinhan Capital plans to further expand New Deal-related investments centered on the venture investment department established in April last year. Shinhan BNP Paribas Asset Management and Shinhan Alternative Investment Management have launched task forces (TF) related to Korean New Deal funds to release various products.

Furthermore, they are actively considering participation in smart city projects in various regions, including Sejong and Busan, selected as national pilot cities, and Guri City, which is independently promoting smart city construction projects. Shinhan Financial is involved in various eco-friendly energy supply projects such as Bonghwa Omisan Wind Power (160 billion won), Jeonnam Yeonggwang Wind Power (160 billion won), Taebaek City Wind Power (50 billion won), Imjado Solar Power (150 billion won), Paju Eco Green Energy (140 billion won), and Jeonbuk Industrial Complex Fuel Cell Power Generation (100 billion won).

Shinhan Financial is also leading efforts to activate the financial data exchange. Shinhan Card currently ranks first in data exchange transactions (128 cases, 32% of total transactions), actively participating in data market activation. They are also promoting the first-ever data sales to overseas financial institutions in Korea. Each group company is introducing AI-based financial services. Shinhan Bank is developing an AI-based intelligent consultation service. Shinhan Card is also building an AI consultation center using a voice AI platform. Shinhan AI is establishing a non-face-to-face customer investment asset management system combining the group’s financial know-how and the latest AI technology. They also plan to further advance their self-developed market risk early detection system, the ‘Market Warning System.’

Additionally, Shinhan Financial is operating the ‘Shinhan Triple-K Project,’ consisting of ‘nationwide expansion of the innovation growth platform, support for global advancement of innovative companies, and plans to nurture promising venture companies,’ to discover digital startups and create a new ecosystem combining industry and finance. They are already operating and establishing startup parks in Seoul, Incheon, and Daejeon, with plans to expand to Busan, Gwangju, and Jeju to complete a nationwide startup support platform. They will additionally invest 200 billion won in tenant startups at the startup parks to actively support New Deal-related startups to serve as a catalyst for the success of the Korean New Deal.

Chairman Cho stated, “The Korean New Deal is a nationwide project fostering future growth industries such as digital, green, and bio sectors, and a newly opening market. I am confident that seizing this opportunity will be a greater leap forward for Shinhan. All group companies must actively unite their efforts for quick decision-making and swift implementation of the financial New Deal, the ‘Shinhan N.E.O. Project.’”

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