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Photo: Shinhan Financial Group |
[Alpha Biz= Kim Jisun] Shinhan Financial Group has significantly increased its lending to major semiconductor companies, including Samsung Electronics and SK Hynix, in a move seen as part of its “productive finance” strategy, according to an exclusive report by Seoul Economic Daily.
According to financial industry sources on March 22, Shinhan’s outstanding loans to Samsung Electronics reached 2.80 trillion won ($2.1 billion) at the end of last year, marking a sharp 65% increase from a year earlier. The entire increase came from foreign currency loans, which rose by 1.10 trillion won to 1.70 trillion won over the same period.
Lending to SK Hynix also expanded notably, rising by more than 430 billion won year-on-year to 1.50 trillion won, representing an increase of over 40%.
Industry officials said banks have been extending financing to large corporations as part of broader efforts to support productive investment, while noting that semiconductor companies require massive capital for future expansion.
Shinhan also maintains significant exposure to major conglomerates, including Lotte Group, while KB Financial Group has similarly increased support for SK Hynix and continues sizable lending to Samsung Electronics.
Experts caution that growing concentration of bank lending toward large corporations could raise concerns over reduced credit access for small and medium-sized enterprises and potential future risks in asset quality.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
