"Uniform Reduction of Loan Rates to Single Digits"... Shinhan Financial Launches Bold Mutual Growth Initiative

Implementation of 'Help-up & Value-up Project'
Household loan rates over 10% to be reduced to single digits
Up to 4 percentage points cut... About 42,000 people to benefit
New 'Saehuimangholssi' credit loans for low-income individuals to be lowered by 1 percentage point

Shinhan Financial Group will uniformly lower the lending rates of Shinhan Bank customers whose household loan interest rates exceed 10%, reducing them to single-digit rates. The company has also decided to lower the interest rates by 1 percentage point for both existing and new customers who take out Saehuimangholssi (New Hope Loan), a credit loan product for low-income individuals. Marking its 43rd anniversary, Shinhan is launching this bold, mutually beneficial initiative to provide tangible relief from interest burdens for customers. It is estimated that approximately 77,000 customers will benefit from this program.

Jin Okdong, Chairman of Shinhan Financial Group. Provided by Shinhan Financial Group.

Shinhan Financial announced on the 2nd that it will implement its third mutual growth program, the 'Help-up & Value-up Project,' within this month.

This initiative is particularly significant as it coincides with July 7, the anniversary of Shinhan Bank's founding and the starting point of Shinhan Financial Group. The project reaffirms the group's mission of "Warm Finance for a Shared Future." The aim is to help customers achieve economic independence (Help-up) and enhance their asset value (Value-up), thereby supporting sustainable consumption.

To achieve this, as of the end of June, Shinhan Financial will uniformly reduce the interest rates for Shinhan Bank household loan customers with rates of 10% or higher to a single-digit rate of 9.8% for up to one year until maturity. This is the first time in the banking industry that a bank has automatically lowered customer interest rates without requiring a separate visit or application.

With this measure, low-credit customers who have been subject to relatively high interest rates due to their lower credit scores are expected to benefit. Shinhan Financial anticipates that interest rates will be reduced by an average of 2.8 percentage points, with a maximum reduction of 4 percentage points. Approximately 42,000 customers are expected to benefit.

In addition, starting from the 1st, Shinhan Financial has decided to lower the calculated interest rate by 1 percentage point for all newly issued Saehuimangholssi loans (credit loans for low-income individuals). It is estimated that about 33,000 customers and a total loan amount of approximately 300 billion won will benefit from this measure.

Small business owners who have high-interest household loans will also be eligible for interest rate reductions through this program. Shinhan Bank plans to actively participate in related government policies, such as the Saechulbal Fund and Bad Bank initiatives, to support small businesses.

Shinhan Financial estimates that this program will reduce customers' interest burdens by up to approximately 20 billion won. A Shinhan Financial representative stated, "By providing direct support through interest rate reductions, we aim to deliver tangible benefits and help customers establish a foundation for long-term asset building, thereby taking the lead in fostering a virtuous cycle of mutual growth. We also plan to expand this project to Jeju Bank and Shinhan Savings Bank within the group in the future."

Chairman Jin Okdong stated, "Shinhan Financial's ongoing mutual growth finance projects are not one-off supports, but strategies to lay the foundation for customers' future financial journeys and grow together. We plan to continuously and gradually implement mutual growth finance that enhances customer credit and uncovers hidden asset value to help customers achieve economic independence."

Meanwhile, last year, Shinhan Financial launched the 'Bring-up & Value-up' program, which supported credit recovery and interest rate reductions by refinancing high-quality Shinhan Savings Bank customers to Shinhan Bank. More recently, the group introduced the 'Find-up & Value-up' program to help customers discover hidden asset value.