Shinhan Bank Lowers Household Loan Interest Rates... 100 Billion KRW Interest Savings

Shinhan Bank announced on the 24th that it will implement support measures to reduce financial costs amounting to 162.3 billion KRW for households and businesses.

On the same day, Shinhan Bank held a 'Win-Win Finance Meeting' with Lee Bok-hyun, Governor of the Financial Supervisory Service, and unveiled a comprehensive plan to expand win-win finance, consisting of interest rate reductions for individual customers and financial support for small business owners and SMEs.

Shinhan Bank will lower interest rates for all new, refinancing, and deferred household loans as follows: ▲Mortgage loans (new and refinancing) by 0.4 percentage points ▲Jeonse deposit loans (new, refinancing, and deferred) by 0.3 percentage points ▲General unsecured loans (new, refinancing, and deferred) by 0.4 percentage points ▲New Saehopeumholssi loans by 1.5 percentage points. The bank explained that the expected reduction in interest expenses for individual customers through this measure is approximately 100 billion KRW.

For small business owners and SME borrowers, Shinhan Bank will independently extend the secondary interest subsidy period for loans subject to interest rate increases due to the end of the COVID-19 secondary interest subsidy period, thereby reducing interest costs. Additionally, Shinhan Bank will support insurance premiums for small business owners and SMEs using the Credit Guarantee Fund’s accounts receivable insurance local government agreement products.

Furthermore, support measures originally scheduled for implementation in the second quarter of this year for vulnerable SMEs will be brought forward to the end of this month. These include a maximum 1 percentage point reduction in interest rate increases due to credit rating downgrades, up to a 3 percentage point interest rate cut for vulnerable SMEs with interest rates exceeding 7%, and maintaining the current interest rate when converting variable rate loans to fixed rate loans. The expected reduction in financial costs for small business and SME users through these measures is approximately 62.3 billion KRW.

Shinhan Bank plans to establish a 'Win-Win Finance Planning Office' to create social value through finance. The office will serve as a control tower to promote sustainable win-win efforts by formulating win-win finance policies that encompass both financial and non-financial aspects.

Meanwhile, following the win-win finance meeting, the 23rd graduation ceremony of the 'Shinhan SOHO Academy' was held. The Shinhan SOHO Academy is a win-win partnership program between Shinhan Bank and small business owners that began in 2017.

Jung Sang-hyuk, CEO of Shinhan Bank, said, "I deeply empathize with the social demand that banks must make greater efforts to coexist with the public amid the increasing interest burden caused by high interest rates. We will lead a culture of coexistence with tangible and sincere policies and do our best to spread this throughout the financial sector so that finance can serve as a reliable partner to the people."