[Evolving CSR] Shinhan Card Leads Financial Support for SMEs and Self-Employed... Role as a Public Interest Platform

Warm Management Initiatives by Card Companies ① Shinhan Card
Industry's First 100 Billion KRW ESG Bond Issuance for COVID-19 Financial Support
Opened Dedicated Section for Small Business Products in Own Shopping Mall... Sales Support

[Editor's Note] The social contribution methods of card companies are evolving. As the emphasis on corporate social responsibility grows for sustainable management?including non-financial factors such as environment, society, and governance (ESG) beyond financial indicators?social responsibility is highlighted from financing to social contribution targets, which have expanded to children and youth, local communities, natural environment, and culture and arts. Especially this year, card companies are conducting various social contribution activities, including financial support and marketing analysis using big data, for financially vulnerable groups facing crises due to the COVID-19 pandemic. Asia Economy presents a series on the social contribution activities of individual card companies leading warm-hearted management.

[Asia Economy Reporter Ki Ha-young] Shinhan Card is promoting social contribution based on its ESG (environment, social, governance) strategy that emphasizes corporate social responsibility. Shinhan Card, which established the industry's first ESG team this year, is conducting systematic social contribution activities based on eco-friendly management, win-win management, and trust management.

This year, it focused on playing a public platform role in national disaster relief projects to overcome the COVID-19 crisis.

It introduced various support measures for small and medium-sized enterprises (SMEs) and small business owners struggling with livelihood difficulties due to COVID-19. Representative financial support for the financially vulnerable includes a 30% reduction in interest rates on business loans for small and medium-sized franchisees with annual sales under 500 million KRW, 2-3 months of interest-free installments, and deferred payment of settlement amounts.

It also issued ESG bonds for COVID-19 financial support for the first time in the industry. In May, Shinhan Card successfully issued ESG bonds worth 100 billion KRW. The funds raised through bond issuance will be used to support customers affected by COVID-19.

In addition to financial support, it is also focusing on supporting economic revitalization such as increasing sales for self-employed business owners. In March, Shinhan Card opened a dedicated section for SME and small business products on its shopping mall, All That Shopping.

Through promotions, it supports the activation of small business product sales and also conducts company introductions via promotional videos. The marketing platform ‘My Shop,’ which small business owners can participate in, was improved so that Shinhan Card covers up to 15% of marketing costs.

It also launched the ‘Weekend Loan Based on Card Payment Approval Amount’ to secure operating funds for small franchisees. This is the industry's first loan product based on card payment amounts, designed to resolve management difficulties of small franchisees who face challenges securing operating funds such as raw material costs because card sales proceeds are not paid on weekends. Franchisees with annual sales under 300 million KRW, who have generated sales for more than three months and have good credit, can use this product at a fixed interest rate of 5% per annum.

Loan Based on Card Payment Amount Launched... Helps Franchisees Secure Weekend Funds

Besides win-win management to overcome the COVID-19 crisis, Shinhan Card has been operating the ‘Areumin Library’ for 11 years since 2010, providing eco-friendly reading environments, recommended books for children and youth, and book mentor programs to vulnerable children. So far, it has opened a total of 506 libraries, supported over 620,000 books, and provided quality educational opportunities to more than 80,000 children, youth, and citizens.

In connection with its global business, it has opened six Areumin Libraries overseas in Vietnam, Indonesia, Myanmar, and recently opened a digital library in collaboration with LG Uplus and others, conducting various connections and collaborations.

Shinhan Card is also expanding the ‘Euljiro 3-ga Project’ for urban regeneration nationwide and promoting the local win-win ‘Hero (Here:路) Project,’ which connects small business owners and customers based on its brand and ESG capabilities. It has carried out the ‘Euljiro Shutter Gallery’ to improve the street environment of Euljiro through art marketing, and the ‘Daegu-ro Seomun Market Environment Improvement Project,’ which provides a special customer experience by enhancing the charm of the local area.

A Shinhan Card official said, "As part of Shinhan Financial Group’s ESG strategy implementation, we plan to continuously expand eco-friendly management, win-win management, and trust management to evolve beyond being number one to becoming a first-class (一流) Shinhan Card."