Shinhan Financial Group to invest W6b over three years to boost social solidarity economy

Shinhan Financial Group announced Wednesday it will invest a total of 6 billion won ($3.93 million) over three years in social solidarity economy organizations to help spread a locally circulating economy model. Working with the Ministry of Interior and Safety, the group plans to support projects focused on energy efficiency, job creation and community problem-solving.

Shinhan Financial Group signed an MOU with the Ministry of Interior and Safety at Ansim Village in Dong-gu, Daegu, formalizing the partnership. The signing ceremony was attended by Interior and Safety Minister Yun Ho-jung, Shinhan Financial Group Chairman Jin Ok-dong, officials from Daegu Metropolitan City and social solidarity economy organizations in Ansim Village, and local residents. Attendees toured the village and discussed the progress and future direction of Daegu's locally circulating economy model.

Ansim Village, where the ceremony was held, is a community where residents established a cooperative with the goal of integrated care for people with and without disabilities. It has since grown into a self-sustaining network of more than 20 social economy organizations and civic groups — including a daycare center, library, cafe, restaurant, dosirak delivery service and a solar power station. The Ministry of Interior and Safety has recognized it as a locally circulating economy model built through voluntary private initiative before any government support, and designated it as a "locally circulating economy development" project site.

Building on an MOU it signed with the Ministry of Interior and Safety in 2023 on neighborhood-level local branding and revitalization, Shinhan Financial has decided to expand its cooperation to cover the social solidarity economy sector. Through the Shinhan Financial Hope Foundation, it plans to provide 2 billion won annually for three years starting this year, for a total of 6 billion won. The expansion follows the group's earlier collaboration with the Ministry of Health and Welfare on a support program for vulnerable groups.

The support program will target social solidarity economy organizations and companies selected through a competitive application process. It will operate across three areas: an energy efficiency track that helps replace equipment with high-efficiency alternatives, a business development track supporting new ventures and job creation, and a community solutions track that addresses local challenges through public-private cooperation.

"For the social solidarity economy — where residents themselves create the services their communities need, such as care and energy — to grow, institutional government support and private-sector participation must go hand in hand," a Shinhan Financial official said. "We will work closely with the Ministry of Interior and Safety to help communities build a foundation for sustainable development."