Shinhan Asset Management Forms KRW 500 Billion in Resident Revenue-Sharing and Energy Infrastructure Funds

Shinhan Asset Management has established energy infrastructure blind funds totaling KRW 500 billion, including a dedicated fund for resident participation that shares renewable energy generation revenues with local residents and a growth fund supporting domestic power grid infrastructure as a whole.

On October 30, Shinhan Asset Management announced that it had signed capital commitment agreements for the Shinhan Resident Revenue-Sharing General Private Special Asset Investment Trust No. 1 and the Shinhan Energy Infrastructure Growth General Private Special Asset Investment Trust No. 1, raising a total of KRW 500 billion.

The Shinhan Resident Revenue-Sharing Fund is the first fund in the asset management industry dedicated to resident participation. It provides financing to local residents and resident cooperatives participating in large-scale renewable energy projects and distributes the revenues generated during their operation. The fund has secured a large-scale offshore wind project as its first investment target and focuses on establishing a virtuous cycle of regional cooperation by returning generation revenues to local communities.

The Shinhan Energy Infrastructure Growth Fund, established alongside it, will make both senior and subordinated loans and equity investments in domestic renewable energy and power grid infrastructure projects. It will provide funding throughout the project lifecycle, from development and construction through operation, and plans to support early participation by private capital in public-sector-led projects involving state-run power companies and policy finance institutions, as well as projects linked to the National Growth Fund.

This year, Shinhan Asset Management has continued to achieve results in investments and projects related to carbon neutrality and the energy transition. These include operating a carbon credit fund that invests in projects approved under Article 6.2 of the Paris Agreement (ITMO); establishing the Shinhan Carbon-Neutral Port Infrastructure Fund and pursuing carbon-neutral energy projects at ports; being selected as an operator of a power distribution network energy storage system (ESS) project under the Ministry of Climate, Energy and Environment's AI-Based Energy Storage System (ESS) Deployment Support Project; and jointly developing public-sector-led solar power projects with state-run power companies and regional industrial complex corporations, prioritizing domestically produced equipment.

Lee Hojun, executive director of the Infrastructure Investment Division at Shinhan Asset Management, said, "The Resident Revenue-Sharing Fund is significant because it connects the energy transition with regional cooperation by enabling local residents and institutional investors to share in the results of renewable energy projects. We will continue to identify investment opportunities in various fields, including carbon credits, carbon-neutral ports, and power transmission and distribution networks, and expand infrastructure investments that support the energy transition."

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