"Beyond Financials: Shinhan Financial Group to Develop Corporate Growth Potential Credit Evaluation System"

Strengthening the Foundation for Productive Finance
First in the Financial Sector

Shinhan Financial Group announced on March 9 that it will launch the first-ever "Corporate Growth Potential Credit Evaluation System" development project in the financial sector, aiming to expand financial support for companies with technological capabilities and future growth potential.

Currently, corporate credit evaluations in the financial sector are primarily designed around past performance, such as financial results. While this approach offers stable assessment, it has the limitation of not sufficiently reflecting the future growth potential of technology-based or new industry companies.

In response, Shinhan Financial Group has recognized the need for an evaluation system that also considers a company’s growth potential and has begun developing a new credit evaluation framework.

This system is designed to go beyond the traditional finance-centered approach by reflecting companies’ technological capabilities, business models, and industry outlook—focusing on future competitiveness. In particular, unlike the existing method that centers on the probability of default, the new system will apply evaluation criteria tailored to growth stages and industry characteristics for companies with high growth potential, such as ventures, advanced, and innovative enterprises. In addition to conventional data based on financial and transaction information, it will comprehensively analyze factors such as a company’s growth stage, traditional financial information, and alternative data.

The developed system will be integrated with the existing corporate credit assessment framework and is planned to be used across various corporate finance areas, including corporate loan reviews, investment banking decision-making, and the identification of growth companies by industry.

A Shinhan Financial Group representative stated, "This is a new corporate evaluation system designed to more accurately assess companies with technological capabilities and growth potential," adding, "Based on our foresight regarding industrial and future changes, we will expand productive finance to support innovative companies and national strategic industries."

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