Shinhan Bank provides $234 mn to support shared growth

South Korea’s Shinhan Bank will provide 306.7 billion won ($234 million) in financial support to alleviate the interest burden for self-employed individuals and small business owners.

The bank announced the measure on Tuesday as a follow-up measure urged by financial authorities in December 2023 within the banking sector for shared growth finance. Shinhan Bank is the third among Korea’s five major commercial banks to announce a support plan, following Woori Bank and NH Nonghyup Bank.

Shinhan Bank will offer a cashback of up to 90 percent of interest payments where interest rates exceeding 4 percent for one year, for customers with personal business loans of 200 million won or lower as of December 20, 2022. The cashback limit is up to 3 million won, and the bank plans to select eligible applicants in January 2024, inform the relevant customers about the support, and proceed with the cashback by March. Individuals with real estate leasing businesses will not be eligible for this cashback.

The bank plans additional cashbacks as well for customers whose interest exceeds 4 percent in 2024, even if the interest payment period is less than one year. The bank expects that 260,000 self-employed individuals and small business owners will benefit from the measure.

The bank has already formed a dedicated department for shared growth finance by integrating the then-shared growth finance planning unit and social responsibility unit as part of the year-end organizational reshuffling.