Chairman Cho Yong-byung gives a commemorative speech in a ceremony held online in honor of the 19th anniversary of Shinhan Financial Group on September 1. (Photo: Shinhan Financial Group)

The Shinhan Financial Group started to preoccupy new markets to be created with a Korean version of the New Deal.

The financial group plans to take a step further from playing its role as a supplier of funds to “Korean New Deal” projects. Therefore, it will seek opportunities to take off in future growth industries such as the digital, green and bio-tech industries.

This move is expected to expedite the Shinhan N.E.O Project led by group Chairman Cho Yong-byung as a “New Deal” in finance.

Chairman Cho held a video conference with CEOs of the group’s affiliates to discuss ways to support the Korean version of the New Deal after the first Korean New Deal strategy meeting held at Cheong Wa Dae, the presidential mansion of Korea.

The Shinhan Financial Group decided to inject about 26 trillion won over the next four years to play its roles as a financial supplier for the Korean New Deal.

Specifically, its financial support package will include 16 trillion won in innovative loans, one trillion won in investment in innovation and nine trillion won in green finance investment and loans.

The financial group will also carry out the indirect supply of funds to new growth industries by making private-sector money into funds and make good use of a system to support the discovery and nurture of startups.

Shinhan Bank decided to expand support for technologically excellent companies based on technical credit evaluation (TCB), intellectual property (IP), and movable property.

Shinhan Investment Corp. will establish basic infrastructure to strengthen investment in innovation-powered companies, including those in the bio-tech and high-tech material industries.

To this end, the company is considering using its own research capabilities to strengthen analysis of Korean New Deal-related industries and companies such as innovative companies and energy companies and to develop and supply financial investment products according to the K-New Deal Index.

At the meeting, Chairman Cho mentioned not only support for the Korean version of the New Deal, but also ways to find the key to the growth of the Shinhan Financial Group in the “post-COVID-19” era through the Korean New Deal.

“The Korean version of the New Deal is a nationwide project that fosters future growth industries such as the digital, green and bio-tech industries and create new markets,” chairman Cho said.

“I am confident that preoccupying the new markets will provide the Shinhan Financial Group with a chance to take off with flying colors.”

With respect to this, chairman Cho is expected to place a big bet on the Korean New Deal with the “One Shinhan” and “digital” initiatives.

Chairman Cho called on all group companies to actively band together to make quick decisions on the Shinhan N.E.O Project which can be called a New Deal in finance and accelerate the implementation of the project.

The Shinhan N.E.O Project was announced by Shinhan Financial Group in June to support the discovery of new economic growth engines in the post-COVID-19 era.

Chairman Cho regards the project as a new deal policy in finance being implemented in three key directions – giving financial support to new growth engine industries, taking the lead in new digital finance and creating a new growth engine ecosystem.

At the meeting, chairman Cho and CEOs of the group’s affiliates racked their brains to enhance its power for the implementation of the Shinhan N.E.O Project to support the Korean New Deal.

In addition, digital transformation is the group’s core competency to cope with changes in the post-COVID-19 era.

Chairman Cho has emphasized digital transformation whenever he has a chance with a desperate determination, saying “Unless we change, we will vanish.”

Chairman Cho has emphasized digital transformation several times since taking office.

“Shinhan is now at a crossroads in which it decides whether to take off once again based on past success or wane amid changes,” chairman Cho said in a ceremony marking the 19th anniversary of the group’s foundation on Sep. 1.

“Digital transformation is innovation and a reforming process that fundamentally change the entire group to make it fit the digital era.”

“Unless we can find a new path to digital transformation by mobilizing all of the group’s capabilities and resources, we will lose in future will,” chairman Cho stressed.

“We need to completely change our business models, work processes, organization and individual evaluation system with a focus on digital transformation.”