Shinhan Bank Partners with Korea Real Estate Board to Support ESG Management for SMEs

Guarantee Institution Contributions and Agreement Guarantees
Up to 3 Billion KRW Financial Support per Company

Shinhan Bank announced on the 7th that it signed a business agreement with Korea Real Estate Board on the 6th at the InterContinental Seoul COEX Hotel in Gangnam-gu, Seoul, to utilize the building energy database (DB) for supporting environmental, social, and governance (ESG) management of small and medium-sized enterprises (SMEs).

This agreement is a public-private cooperative financial project utilizing the national building energy database managed by the Ministry of Land, Infrastructure and Transport. It was established to promote voluntary energy savings by SMEs in line with the spread of ESG management and to achieve the national greenhouse gas reduction targets.

Shinhan Bank will contribute 2 billion KRW to the guarantee institution to create a guarantee fund worth 120 billion KRW and support loans up to 3 billion KRW per company. Going forward, Korea Real Estate Board will provide energy consumption data from the ‘National Building Energy Integrated Management System’ to Shinhan Bank, allowing customers to receive preferential financial support without separate proof of reduction results.

The preferential financial support includes a 0.5% guarantee fee subsidy and up to a 1% reduction in loan interest rates. The preferential period is up to 3 years if the reduction rate exceeds 5%, and up to 2 years if the reduction rate is above 0% and up to 5%.

A Shinhan Bank official stated, “We will promptly provide benefits based on energy reduction amounts to SMEs and small business owners, raise awareness of ESG management, and promote focused financial support. We will continue to do our best to sincerely practice win-win finance for vulnerable SMEs and small business owners.”