Shinhan Financial Group has made an additional 100 billion won contribution, the first among 38 operators of Miso Finance foundations. It marks the first move of Chairman Jin Ok-dong (진옥동) in his second term, expanding inclusive finance from loan support to asset building.

Shinhan Financial said on March 29 it signed an agreement on March 27 with the Korea Inclusive Finance Agency and the Shinhan Miso Finance Foundation on support to help youth and regions in crisis overcome difficulties. It said it discussed specific cooperation measures alongside the 100 billion won contribution.

It said the move reflects its intention to build an execution system that links beyond simple financial support to customer self-reliance and preparation for the future, and to give concrete form to "responsible management."

In particular, Shinhan Financial made the additional contribution as the first among 38 domestic operators since the Miso Finance Foundation was established in 2009.

The total 100 billion won contribution is expected to strengthen the inclusive finance infrastructure while also providing a basis for establishing inclusive finance as a sustainable execution system.

Shinhan Financial will also use 20 billion won of the contribution to 추진 a programme that provides asset-building support funds to customers who repay diligently. It reflected the efforts of diligent borrowers by linking the debt repayment process to an opportunity to accumulate assets.

The programme is expected to be linked to products such as the Youth Future Savings Deposit scheduled to launch in June, and to serve as a "financial ladder" supporting customers' basic asset formation.

Shinhan Financial has expanded the role of finance into the real economy through initiatives including the "Bring Up & Value Up" project to support credit improvement for mid-credit customers and a 10 billion won contribution to a substitute workforce support programme for small and medium-sized companies.

This contribution and the asset-building support structure are assessed as a step to develop inclusive finance from a support-centred model into one that leads to self-reliance and asset building, based on that experience.

Shinhan Financial plans to strengthen cooperation with the Financial Services Commission and the Korea Inclusive Finance Agency, expand links to policy finance and broaden the role of inclusive finance from support to creating change.

"There are many cases where people do not have the opportunity to build assets because they are repaying loans diligently," Jin said. "Shinhan Financial will establish inclusive finance that helps customers become self-reliant and build assets as 'responsible management' and become a catalyst that creates real change," he said.