Shinhan Financial to Invest 110 Trillion Won in Productive Finance Over 5 Years: "Group to Unite Capabilities for Financial Structure Innovation"

Supplying 93 to 98 Trillion Won in Productive Finance by 2030
10 Trillion Won for the National Growth Fund, Up to 15 Trillion Won in Direct Investments
Inclusive Finance to Continue
Progress Reviewed Every Two Months; Subsidiary Management Plans Finalized by Month-End

Shinhan Financial Group will invest 110 trillion won over the next five years to drive a transition toward productive finance and expand inclusive finance. Of this amount, 10 trillion won will be invested in the National Growth Fund promoted by the government, signaling the group's active participation in public-private partnerships for economic recovery. The group also plans to increase lending to general small and medium-sized enterprises (excluding real estate) and to make up to 15 trillion won in direct investments.

On November 9, Shinhan Financial Group announced the full-scale launch of its "Shinhan K-Growth! K-Finance! Project." This initiative is being pursued with a sense of responsibility to transform the entrenched low-growth economy and real estate-centered financial structure, positioning finance as a key driver for industrial transformation toward a hyper-innovative economy and for revitalizing livelihoods.

Shinhan Financial Group plans to strengthen the essential functions of finance-fund intermediation, risk sharing, and growth support-by allocating a total of 110 trillion won over five years until 2030. This will be divided into 93 trillion to 98 trillion won for productive finance and 12 trillion to 17 trillion won for inclusive finance.

The focus of productive finance is to foster advanced strategic industries and to enhance capital circulation centered on innovative companies. Specifically, this includes a 10 trillion won investment in the National Growth Fund, 10 trillion to 15 trillion won in direct financial support from the group, and 72 trillion to 75 trillion won in loans. The National Growth Fund, introduced by President Lee Jaemyung at the National Report Conference in August, represents about 13% of the 75 trillion won in private and national funds within the total 150 trillion won fund. Shinhan Financial Group, led by Shinhan Bank and its major affiliates, will provide concentrated support for advanced strategic industries such as artificial intelligence and semiconductors, as well as climate, energy, infrastructure, and K-Boom-Up industries.

Separately, the group will raise an additional 10 trillion to 15 trillion won in investment funds to pursue further investments, including 15 key projects in the hyper-innovative economy. The group intends to support the National Growth Fund and provide capital to high-potential companies, including those preparing for KOSDAQ listing or at the pre-IPO stage. In addition, through the "Hyper-Innovative Economy Growth Support Task Force," organized around the bank, Shinhan Financial Group will supply 72 trillion to 75 trillion won in direct loans to general small and medium-sized enterprises, excluding real estate.

As the project begins, Shinhan Financial Group has already initiated large-scale financing for the core infrastructure of national strategic industries and new industry sectors. The group has arranged a total of 5 trillion won in financing for infrastructure such as transportation and water supply in semiconductor industry clusters and invested another 5 trillion won in the CTX (Daejeon, Sejong, Chungbuk metropolitan railway) project to promote balanced regional development. Additionally, Shinhan Financial Group has established funds totaling 130 billion won for data centers and renewable energy development, and plans to raise an additional 300 billion won in infrastructure development funds by the end of the year. The group will also jointly promote regional infrastructure improvement projects, such as wastewater treatment facilities and residential environment upgrades, in cooperation with the Korea Credit Guarantee Fund.

The 12 trillion to 17 trillion won allocated for inclusive finance will be used to support the recovery of the livelihoods of low-income individuals, small business owners, and the self-employed, as well as to facilitate credit recovery and rehabilitation for financially vulnerable groups. The focus will be on reducing interest burdens (by expanding mid-interest rate loans for small business owners and the self-employed, and introducing refinancing services for credit loans to individual business owners) and providing practical rehabilitation support (including contributions to bad banks and expanding the scope of the New Start Fund). Shinhan Financial Group will also continue to expand its representative win-win finance programs, such as "Bring-Up & Value-Up" (refinancing credit loans from savings banks to banks) and "Help-Up & Value-Up" (reducing and exempting high-interest loans for low-income borrowers).

To enhance execution, Shinhan Financial Group established the "Productive Finance Project Management Office (PMO)" as an integrated group management organization in September. The PMO will systematically manage the entire process, including setting tasks and goals for each division, developing strategies to identify promising industries and innovative companies, analyzing capital impact and preparing capital management plans, enhancing execution through decision-making bodies (such as boards of directors) at each subsidiary, and monitoring project progress. The group will review implementation levels every two months. Performance in these initiatives will be included as core strategic tasks for participating group companies and reflected in executive evaluations.

This plan was reported and discussed at the board of directors meeting earlier this month. By the end of this month, each subsidiary's management plan for the next year, reflecting productive finance strategies and goals, will be finalized, and in December, the group will integrate these into a final management plan to be submitted to the board. Shinhan Financial Group emphasized that this plan will not negatively impact its capital ratios or shareholder return plans.

A Shinhan Financial Group representative stated, "This plan reflects our commitment to revolutionize the real estate-centered financial structure and strengthen the essence of finance to drive industrial transformation and sustainable growth. Shinhan Financial Group will mobilize its capabilities to expand support for the real economy and establish a leading financial model to accelerate hyper-innovative economy projects."