Shinhan Bank Launches Salary Advance Loan... 'Gig Worker' Product

"Get Your Next Month's Salary in Advance"

[Asia Economy Reporter Park Sun-mi] Shinhan Bank announced on the 2nd that it will launch a new financial product called ‘Shinhan Salary Advance Loan,’ which supports emergency living funds by utilizing labor data for gig workers in the gig economy era (an economic situation where non-regular freelance work forms are spreading).

Shinhan Bank launched the ‘Shinhan Salary Advance Loan,’ a new financial service that is easier, more comfortable, and more innovative for financial consumers with various work types, as the work culture of working according to one’s capabilities at desired times without belonging to a specific company spreads due to the development of digital platforms and social changes that value personal life.

The ‘Shinhan Salary Advance Loan’ is a product that supports funds up to KRW 2 million, providing up to 70% of the monthly salary and 60% of weekly or daily wages for employees of workplaces using the payroll settlement service of Newploy, an automated payroll service platform. The loan period is one month, and the loan is automatically repaid when the salary is deposited on the customer’s payday.

In particular, if the loan cannot be repaid on the payday due to unexpected situations such as resignation or delayed salary deposit, the loan balance can be extended with a 3-month principal installment repayment method, allowing monthly repayment of principal and interest, reflecting the work characteristics of gig workers and considering convenience in financial transactions.

The loan can be applied for through Shinhan SOL, and preferential interest rates are applied when income deposits exceed KRW 500,000, when Shinhan Card (including check cards) is used for more than KRW 500,000 over three months, or when the balance of installment savings products such as savings deposits and subscription products exceeds KRW 300,000.

A Shinhan Bank official said, “Through customer surveys and payroll data analysis, we developed a new loan product that short-term and non-regular gig worker customers, who had difficulty verifying employment and income, can use as emergency living funds,” adding, “We will continue to introduce more innovative financial services that allow customers to use the bank more easily and comfortably by utilizing financial and non-financial data.”