Cho Yong-byeong Responds to 'K-New Deal' with 'Financial New Deal'... Shinhan Financial Invests 90 Trillion Won in 'Neo' (Comprehensive)

Chairman Cho Yong-byeong Leads Business... Group CEO Execution Strengthening Meeting
Announces Three Key Funding Measures... Expansion of Policy-Related Loans and Investments

[Asia Economy Reporter Kangwook Cho] Cho Yong-byeong, Chairman of Shinhan Financial Group, will provide more than 90 trillion won in funding 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 strengthen the execution of the 'Shinhan N.E.O. Project' and announced the details. 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 this, they specified detailed tasks such as building eco-friendly and digital infrastructure, fostering a digital ecosystem, and discovering startups.

To fulfill its role as a New Deal finance supplier, Shinhan Financial plans to invest 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 in loans, 4 trillion in investments). This is an increase of 6 trillion won from the 20 trillion won announced last June. Additionally, they will combine indirect supply methods by creating private funds to supply capital to new growth industries and direct support methods for discovering and nurturing startup companies.

By group company, Shinhan Bank will expand support for technology credit evaluation (TCB), intellectual property (IP), and movable collateral loans, focusing on promising technology sector companies. Also, using the group's social value measurement system, 'Shinhan Social Value Measurement Framework (Shinhan SVMF),' they plan to create various New Deal-related specialized financial products, such as financial support products for job-creating companies, and supply loans accordingly.

Announcement of Three Core Funding Supply Plans... Expansion of Policy-Related Loans and Investments

Shinhan Investment Corp. will build basic infrastructure to strengthen investments in innovative companies in fields such as bio and advanced materials. To this end, they will enhance analysis of New Deal-related industries and corporate groups (innovative companies, energy companies, etc.) using their own research capabilities and refine the evaluation of intangible assets (intellectual property rights, patents, etc.) to expand the pool of companies eligible for New Deal-related investment support. They also plan to provide K-New Deal-related investment information to various investors through shared platforms and are considering creating various financial investment products linked to the newly introduced 'K-New Deal Index' to supply to investors.

Shinhan Life Insurance and Orange Life will promote the expansion of the healthcare business by launching a healthcare platform and expanding the group's healthcare business collaboration system. They will also further increase eco-friendly investments focusing on renewable energy (wind and solar power projects) and smart industrial complexes (waste treatment, etc.).

Shinhan Capital plans to further expand New Deal-related investments by advancing the New Growth Industry investment system centered on the venture investment department established in April last year (securing and internalizing specialized capabilities). Shinhan BNP Paribas Asset Management and Shinhan Alternative Investment Management will operate a task force (TF) related to the Korean New Deal fund and launch 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 participating in various eco-friendly energy supply projects such as Bonghwa Omisan Wind Power (160 billion won), Yeonggwang Wind Power in Jeonnam (160 billion won), Taebaek Wind Power (50 billion won), Imjado Solar Power (150 billion won), Paju Eco Green Energy (140 billion won), and fuel cell power generation in Jeonbuk industrial complexes (100 billion won). They plan to complete financial support for multiple smart logistics centers, data center construction projects, and smart industrial complex projects within this year.

Shinhan Financial is leading the activation of the financial data exchange to pioneer new digital finance. Currently, Shinhan Card is the most active participant in data market activation, recording the highest transaction performance at the data exchange (128 transactions, 32% of total transactions). They are also promoting data sales to overseas financial institutions for the first time in Korea. Each group company plans to introduce various financial services using AI (artificial intelligence). Shinhan Bank is currently building an AI-based intelligent consultation service, and Shinhan Card is also promoting the establishment of an AI consultation center using a voice AI platform. Additionally, Shinhan AI, the group's AI specialized subsidiary, is developing 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 the 'Market Warning System,' an in-house developed market risk early detection system.

Launch of Shinhan Triple-K Project... Nationwide Startup Support Completed

Alongside this, Shinhan Financial is operating the 'Shinhan Triple-K (Triple-K) Project,' composed of 'Korea Cross Country' for nationwide expansion of the innovation growth platform, 'Korea to Global' for supporting innovative companies' global expansion, and 'K-Unicorn' for fostering 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, and plan to expand to Busan, Gwangju, and Jeju to complete a nationwide startup support platform.

The nationwide startup parks established by Shinhan will primarily house startups that can provide foundational technologies for New Deal projects. They plan to invest an additional 200 billion won in resident companies 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 national 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." He emphasized, "All group companies must actively unite their efforts for rapid 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.