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| Shinhan Bank President Suh Jin-won, second from left, poses with KAMCO President Hong Yong-man, third from left, after signing an MOU to cooperate on financial consulting services for the working class and the underprivileged, in this March 17 file photo. / Courtesy of Shinhan Bank |
By Yoon Ja-young
The general impression many people have about finance is that it is a cold-hearted business, but it can be as warm as any helping hand.
Financial services can benefit the entire world, enhancing social values and revitalizing every corner of the economy.
During the past few years, Shinhan Bank has been pondering ways to use financial services as tools to help the underprivileged get back on track, and support the working class by stabilizing their household budget.
For instance, Shinhan Bank has provided more than 1.1 trillion won in loans tailored for low-income, low-credit households, the most provided by any local bank.
It also introduced the "SHB Household Debt Healing Program," which aims to support the "house poor," or homeowners squeezed by excessive debt and falling housing prices. It is a pre-workout program to restructure debt.
Those who are renting homes on "jeonse" ― Korea's unique system where a lump-sum deposit is provided to the homeowner instead of monthly rent ― are also heading to Shinhan to get loans amid soaring jeonse prices.
Recently, Shinhan went a step further, considering ways to help the working class rise to middle class, by signing a memorandum of understanding with the Korea Asset Management Corporation (KAMCO). Customers of KAMCO will get financial and credit consulting services at Shinhan, while Shinhan's customers will be provided job opportunities through KAMCO's job information program.
Its support of social enterprises aimed at expanding stable job opportunities for the underprivileged. Shinhan signed an agreement with the Seoul Credit Guarantee Foundation to provide loans to social enterprises and start-ups. It has lent some 7 billion won to about 60 such entities so far this year.
Social enterprises can also get accounting, financial and tax consulting services from the bank's social contribution consulting team, which was established in 2012.
Its savings account, which provides a 6 percent interest rate, aims at helping the working class accumulate assets. Over 17,000 customers have enjoyed the high interest rate so far this year.
"We believe we should sincerely support the working class and enhance their value for mutual growth of the bank and the customers. That's the contribution a bank can make for society and the economy," a Shinhan spokesperson said.
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