Shinhan Bank said on Feb. 18 it signed a mutual cooperation agreement with Hyundai Engineering & Construction on Feb. 13 at the builder's headquarters in Jongno, Seoul, to promote productive finance.

Shinhan Bank CEO Jung Sang-hyuk (정상혁) and Hyundai Engineering & Construction CEO Lee Han-woo (이한우) attended the ceremony. The two companies plan to use the agreement to build a cooperative framework in which finance leads to real-economy investment and growth and to jointly take part in expanding productive finance.

To ensure projects proceed successfully, the partners said they will jointly review optimal financial support measures tailored to each project's characteristics and funding needs and put a working-level cooperation system into operation.

Under the agreement, Shinhan Bank plans to strengthen financial cooperation across businesses Hyundai Engineering & Construction is pursuing, including data centres, renewable energy, infrastructure and environment, and power brokerage trading. It plans to provide funding support through project-by-project financial advice, arranging finance and linking investments.

The two companies also agreed to strengthen information exchange during project execution and build a cooperative system. They plan to work together to develop financial products and customised financial solutions tailored to project characteristics.

Shinhan Financial Group launched a group task force on productive finance in December last year and has been expanding productive finance to help funds flow into productive areas of the real economy, focusing on national core industries, innovative companies and manufacturing. The agreement was also pursued as part of Shinhan Financial Group's strategy to expand productive finance.

A Shinhan Bank official said the agreement established a foundation for cooperation to expand productive finance that supports national growth engine industries such as data centres, environmentally friendly energy and infrastructure through finance. The official said the bank will work with Hyundai Engineering & Construction to identify high-quality projects and provide tailored financial solutions so that finance leads to real-economy investment and growth.