Shinhan Financial Finalizes 20 Trillion Won in Productive Finance for This Year, Ties It to Executive Evaluations

2 Trillion Won for the National Growth Fund, 3 Trillion Won for Inclusive Finance
Enhancing Execution by Reflecting Plans in Group Strategy Tasks and KPIs

Shinhan Financial Group has finalized this year's productive finance supply target at 20 trillion won. The group will also link this initiative to the performance evaluations of Chairman Jin Okdong and other executives to enhance execution.

Jin Okdong, chairman of Shinhan Financial Group (second from right), speaks with executives of the group's companies at a meeting of the "Productive Finance Promotion Committee" at the group's headquarters in Jung-gu, Seoul on the 11th. Provided by Shinhan Financial Group

Shinhan Financial Group announced that it made this decision at the "Group Productive Finance Promotion Committee" held on the morning of the 11th at its headquarters in Jung-gu, Seoul.

The meeting was attended by Chairman Jin, who serves as the committee chair, and the chief executive officers (CEOs) of key group companies. They finalized productive finance promotion plans by group company and business area, and reviewed detailed implementation measures such as execution schedules and role sharing.

Through this, Shinhan Financial Group established detailed plans totaling 20 trillion won for this year, including 2 trillion won for the National Growth Fund, 2 trillion won in the group’s own investments, 13 trillion won in credit support, and 3 trillion won in inclusive finance.

Specifically, in the investment division, the group plans to expand its participation in national core industries and mega projects such as AI, data centers, advanced manufacturing, and renewable energy by contributing to the National Growth Fund and leveraging its own investment capabilities through vehicles such as a 250 billion won start-up venture fund and a 450 billion won infrastructure development fund.

In the lending division, the group will flesh out plans for credit support aimed at establishing a business structure focused on industries related to the government’s 15 leading projects for a super-innovation economy and promoting balanced regional development. It also decided to strengthen employee capabilities by reorganizing the credit review team, improving credit rating models, and creating a new research team.

In the inclusive finance division, the group plans to significantly expand the scope of support around projects that Shinhan Financial Group has been prioritizing, including financial support for vulnerable young people and local communities through the Smile Microcredit Foundation, easing the burden of high-interest financing costs, and providing assistance to victims of voice phishing and rental deposit fraud.

In particular, to ensure the substantive promotion of productive finance, the group will reflect implementation targets and outcomes in the strategic tasks and key performance indicators (KPIs) of major group companies. It will also link them to the performance evaluations of the management of the holding company and key subsidiaries, including the group CEOs.

Chairman Jin Okdong said, "We will practice responsible finance by expanding effective financial support to invigorate the super-innovation economy and thereby help build a virtuous cycle in our society," adding, "By focusing on the essential role of productive finance, we will support the revitalization of the capital market and, in doing so, establish ourselves not just as a generator of simple profits but as a core pillar of sustainable growth."

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