Shinhan puts greater focus on child-care products

By Choi Kyong-ae

Shinhan Financial Group, the country’s biggest financial company by assets, is betting on child-care financial products because it believes the government’s welfare projects will generate more business opportunities.

Beginning this year, parents who have children who are under 5 are able to apply for government subsidies when they send their children to kindergartens or private child-care centers.

The subsidies ranged from 150,000 won ($137) to 394,000 won, depending on the age of the child, a Shinhan Financial spokesman said.

“To be qualified for the government subsidies, parents are initially required to take out a credit card dubbed ‘Child Happy Card’ at the country’s commercial banks or card companies,” the spokesman said.

“If a parent makes a monthly payment for a kindergarten or a baby-care center with the card, the Ministry of Health and Welfare returns money worth up to 394,000 won per child.”

Shinhan Bank, a flagship unit of Shinhan Financial Group, is one of 11 banks and card issuers allowed to issue the Child Happy Card from Jan. 2.

In other benefits, cardholders could get discounts when they bought an insurance policy from Shinhan Financial’s insurance unit and other financial products at the financial group’s affiliates, which include an asset management company and financial investment company, the spokesman said.

Cardholders could also enjoy discounts of 5 percent at pharmacies, hospitals and large discount stores, he said. They could also enjoy benefits at major amusement parks such as Everland, Lotte World and Seoul Land.

To win young parents from other financial firms, Shinhan Financial has launched the “Shinhan Child Happy Family” product lineup. It covers installment savings, mortgage loans, insurance policies and cash management accounts, according to the bank.