Shinhan Financial pledges $22 bn to support Korean New Deal over 4 yrs

2020.09.07 13:16:13

[Photo by Shinhan Financial Group Co.]이미지 확대

[Photo by Shinhan Financial Group Co.]

South Korea’s top Shinhan Financial Group Co. will inject 26 trillion won ($21.9 billion) to back state-led New Deal programs aimed at spurring digital migration and revitalizing the coronavirus-stricken economy over the next four years.

Shinhan Financial Group said on Monday that it will carry out its role as supporter of the Korean version of New Deal by injecting 26 trillion won over the next four years – 16 trillion won via innovation funds, 1 trillion won via innovative investment, and 9 trillion won via green finance, investment, and loans. The group will indirectly inject funds in new growth sectors by creating funds using private capital and provide direct support to discover and nurture startups.

Shinhan Financial Group plans to help companies in promising technology sectors by expanding tech credit bureau, intellectual property, and movable asset-backed loans.

The group will use its own research capacity to enhance analysis on New Deal-related industries and review supplying financial investment products linked to K-New Deal index.

Cho Yong-byoung, chairman of Shinhan Financial Group, said in an online meeting with company chief executives that taking the lead in Korean New Deal project will be an opportunity to Shinhan Financial Group to take a bigger leap. He asked for companies’ support for a swift push and decision-making of Shinhan N.E.O project – financial support to back government’s New Deal program.

The financial conglomerate last week approved fund-raising scheme of selling $1 billion new shares to global funds Affinity Equity Partners and Baring Private Equity Asia for a respective 4 percent and 3.5 percent stakes.

By Lee Eun-joo

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