Shinhan Financial to Support Young Borrowers with Up to 3 Million Won

Shinhan Financial Group will provide support of up to 3 million won to young customers who have repaid their loans without defaulting. The initiative aims to encourage responsible repayment and assist young people in building their assets, going beyond merely lending to financially vulnerable groups.

Starting September 4, Shinhan Financial Group will accept applications for the 'Asset Formation Support Fund' from young loan users through the Shinhan Microfinance Foundation.

This program utilizes 200 billion won from the 1 trillion won that Shinhan Financial Group contributed to the Microfinance Foundation in March. The goal is to alleviate financial burdens by supporting a portion of the repayments for young borrowers who repay their loans diligently, thereby helping them establish a foundation for self-sufficiency.

Eligible participants are those who have taken out youth loans from the Shinhan Microfinance Foundation, such as the Youth Future Connection or Youth Operator Fund loans, and have been repaying them without default since April 1.

Shinhan Financial Group will verify repayment status at the end of each quarter and provide up to 300,000 won per instance, for a total of up to 3 million won over a maximum of 10 instances. Payments will be made on the 10th of the month following the end of each quarter, or on the next business day if that date falls on a holiday.

The first payment is scheduled for October 12. Eligible applicants include 568 borrowers who received youth loans between April and June of this year and have applied for the support fund. Shinhan Financial Group anticipates that approximately 10,000 individuals will benefit from this program over the next eight years until the funds are exhausted.

Jin Ok-dong, Chairman of Shinhan Financial Group, stated, "Young people who borrow from the Shinhan Microfinance Foundation often find it difficult to access first-tier financial institutions. I wanted to ensure that those who repay their loans responsibly are rewarded for their efforts and can build their own assets."