[DigitalToday reporter Ji-young Lee (이지영)] Shinhan Bank has introduced an escrow service dedicated to foreign direct investment to strengthen transaction safety between foreign investors and domestic investee companies.

Shinhan Bank said on Monday it has launched the escrow service for foreign direct investment.

Under the service, after a foreign direct investment report and once investment funds arrive, Shinhan Bank keeps the foreign investor's money in a separate account. It pays the funds to the domestic investee company after related procedures, such as conditions precedent specified in the investment contract, are completed.

Shinhan Bank said the service will keep investment funds safe until contractual payment conditions are met. It will manage payments so that funds are released only when pre-agreed payment requirements are confirmed. Foreign investors can reduce the risk of funds being paid out before conditions are met, and domestic investee companies can receive the funds stably after contract performance.

To mark the launch, Shinhan Bank will fully waive escrow service fees for initial customers. It will also provide professional consultations linked to external law firms through its dedicated foreign direct investment organization, Shinhan FDI Partners.

A Shinhan Bank official said, "We launched it to build a financial foundation that allows foreign investors and domestic companies to transact with peace of mind." The official added, "We will actively support the smooth inflow of overseas capital into South Korea and help domestic companies attract investment."