Shinhan Bank said on Jan. 12 it signed a business agreement with the Korea Technology Finance Corp at Kibo’s Silicon Valley branch in Silicon Valley, the United States, on Jan. 8 to expand financial support for South Korean companies entering North America.

Under the agreement, it will provide a total of 50 billion won in partnership guarantees for South Korean companies operating local subsidiaries in North America.

Using Shinhan Bank’s special contribution as funding, the plan will raise the guarantee ratio to 100 percent from 85 percent and subsidise guarantee fees by 0.7 percentage points for 2 years. It aims to ease financing costs for South Korean companies with relatively low access to local financial markets.

Shinhan Bank has 4 networks in North America: America Shinhan Bank, its New York branch, Shinhan Canada and Shinhan Mexico. It continues to pursue business expansion in North America, including opening a representative office in Georgia in November 2024.

A Shinhan Bank official said the agreement will allow the bank to provide effective financial support to South Korean companies that have entered North America, a key region in responding to the reshaping of global supply chains. The official said Shinhan Bank will strengthen cooperation for South Korean companies expanding overseas by linking Kibo’s capabilities in providing guarantee support based on technology evaluation with Shinhan Bank’s local financial network.