Shinhan Financial Group (055550.KS) Chairman Jin Ok-dong chose inclusive finance as his first initiative of his second term. By making the first-ever additional contribution of 100 billion won ($72 million) among all 38 Miso microfinance foundation operators in Korea, Jin is being credited with pursuing responsible management that goes beyond simple loan support to help customers prepare for their financial futures.
According to financial industry sources on Tuesday, Shinhan Financial signed a "business agreement to support youth and regional crisis recovery" with the Korea Inclusive Finance Agency and the Shinhan Miso Foundation on Sunday, pledging to contribute 100 billion won.
Miso foundations are microfinance institutions that provide small unsecured loans to individuals with low credit scores or low incomes. First launched in 2009, they are operated by major financial groups including KB, Shinhan, Woori, Hana, and IBK Industrial Bank of Korea, as well as large corporations such as Samsung Electronics. Shinhan Financial is the first to make an additional contribution since the foundations were established.
The funds will be used not only for loan support but also as resources to help borrowers achieve self-sufficiency after repayment. Of the total, 80 billion won will be allocated to loans for vulnerable groups including young people, low-income individuals, and small business owners. The remaining 20 billion won will be used as asset-building grants for borrowers who faithfully repay their loans. The initiative aims to turn the process of repaying debt into an opportunity for asset accumulation. Shinhan also plans to link the program with products such as the Youth Future Savings Account set to launch in June, strengthening its role as a financial ladder. While conventional inclusive finance has focused on improving financial access and reducing cost burdens, this program differentiates itself by supporting the foundation for self-sufficiency by considering borrowers' lives after repayment.
The decision reflects Chairman Jin's commitment to designing structures that enable finance to lead to real changes in customers' lives. The move is seen as signaling the direction of his second-term leadership, particularly as it came as his first initiative after being reappointed at the shareholders' meeting on Wednesday. A Shinhan Financial official said, "If inclusive finance has previously stopped at simple loan support, we are now evolving it into a structure that supports customers in building a foundation for self-sufficiency by considering their lives after repayment," adding, "The responsible management approach of establishing such an execution framework will be further strengthened."
Chairman Jin has focused on building a system that provides customers with both debt relief and asset-building opportunities. Shinhan Financial has expanded the social role of finance through various inclusive finance programs, including the "Bring Up & Value Up" project that supports credit improvement and financial cost reduction for mid-credit customers, and a 10 billion won contribution to a program supporting substitute workers for small and medium-sized enterprises.
Shinhan Financial plans to strengthen cooperation with the Financial Services Commission and the Korea Inclusive Finance Agency to expand linkages with policy finance, while broadening the social role of inclusive finance from "support" to "creating change." Chairman Jin said, "There are many customers who have diligently repaid their loans but never had the opportunity to build assets," adding, "We will establish inclusive finance that helps them achieve self-sufficiency and asset formation as a pillar of the group's responsible management, and serve as a catalyst for creating real change."
