Shinhan Bank will subsidise guarantee fees of up to 100,000 won for its "Shinhan Sunshine Loan Youth" to reduce young people's financing cost burden.

Shinhan Bank said on July 20 it has been running a guarantee fee support event for Shinhan Sunshine Loan Youth since July 15.

Shinhan Sunshine Loan Youth is a lending product operated by the Korea Inclusive Finance Agency to ease the financial burden of university students and young people.

Those eligible include job seekers, new employees and young entrepreneurs aged 19 to 34 with annual income of 35 million won or less. Borrowers can take out loans of up to 12 million won based on a guarantee certificate issued by the Korea Inclusive Finance Agency. The event targets customers who newly take out a Shinhan Sunshine Loan Youth loan and pay guarantee fees and interest on time. Customers are automatically entered when they take out the loan without a separate application process. The bank subsidises guarantee fees of up to 100,000 won per customer.

The support payment will be made at the end of the quarter following the quarter that includes the date the loan is newly taken out.

A Shinhan Bank official said, "We prepared this event to provide practical help to young customers," adding, "We will continue to expand inclusive finance that supports young people's stable entry into society and economic activity."

Separately, Shinhan Bank is running the "Jeoktu-ma: Installment Investment Marathon" campaign. Customers are automatically entered if they sign up for at least 100,000 won in an installment fund by Sept. 30 and set up an automatic transfer of 100,000 won per month for at least 12 months.