Shinhan provides leverage to SMEs, low incomers

Shinhan Bank, South Korea’s third-largest bank by assets, is taking the lead in backing small and medium-sized enterprises and low-income groups.

Shinhan extended loans worth 58.4 trillion won ($57 billion) to SMEs as of July, up 3.2 trillion won from last year’s 55.1 trillion won, according to the Financial Supervisory Service.

The increase was the largest among local banks, and almost double that of No. 2 lender Woori Bank’s 1.6 trillion won.

“Our goal for this year is to allot 90 percent of our corporate loans to SMEs, and also help them tap into new markets,” a Shinhan spokesman said.

Shinhan currently operates a “Global Desk” program in five countries, including Vietnam, China and India. The service offers various forms of assistance to both members and nonmembers on translation, transportation, legal consulting, real estate information and securing funds.

“We have expanded loan support in dollars to several mid-sized companies that are planning to enter Vietnam,” Shinhan officials said.

The bank is also stepping up its support for low- to middle-income housing groups.

Shinhan was the only bank in the country whose small loans surpassed 1 trillion in the first half of this year. Shinhan’s first microcredit beneficiary Shinhan Smile Microcredit Bank also logged a record 70 billion won last month, the highest since its establishment in 2009.

“Our strong commitment to SMEs and private borrowers comes from the belief that remaining faithful to the bank’s fundamentals will benefit everyone,” the bank officials said.

Shinhan Bank president Seo Jin-won also stressed the significance of helping the low-income bracket and smaller companies, claiming that revitalizing the economy is key to local banks’ survival.

“As a leading bank, Shinhan will bring change and innovation to the firm’s system with a greater commitment to the Korean economy,” Seo said in a statement.

By Suk Gee-hyun (monicasuk@heraldcorp.com)