Shinhan Financial Injects Additional 100 Billion Won into Group’s Smile Microcredit Foundation

Shinhan Financial Group announced on February 4 that its major affiliates will make an additional contribution of 100 billion won to the Shinhan Smile Microcredit Foundation and expand inclusive finance policy programs for low-income individuals, including diligent repayment incentives, targeting young people and vulnerable groups in provincial areas.

Exterior view of Shinhan Financial Group headquarters.

This additional contribution is intended to upgrade the Shinhan Smile Microcredit Foundation, which oversees the group’s inclusive finance, into an execution platform for inclusive finance that substantively supports the self-reliance and future preparedness of young people and vulnerable groups in provincial areas.

Based on the expanded funding, the group plans to actively participate in policy finance programs of the Korea Inclusive Finance Agency for young people and vulnerable groups in provincial areas, while also gradually reviewing and expanding an incentive model that links diligent repayment after loans to asset building.

Specifically, Shinhan Financial Group is reviewing an asset-building incentive model for diligent repayers of Smile Microcredit loans, under which a portion of the diligently repaid amount would be used as matching funds to be deposited into the “Youth First Savings” product or invested in the “National Growth Fund,” which is scheduled to be launched in June this year.

Jin Ok-dong, Chairman of Shinhan Financial Group, said, “This additional contribution will serve as a turning point for the Shinhan Smile Microcredit Foundation to grow into a practical execution hub for inclusive finance for young people and vulnerable groups in provincial areas,” adding, “Shinhan Financial Group will continue to upgrade its support for inclusive finance as ‘responsible management’ so that sound use of finance can lead to self-reliance and future preparedness.”

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