November 24, 2024

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Shinhan Bank CEO Jung Sang-hyuk (right) and British Business and Trade Secretary Kemi Badenoch pose for a photo after signing an investment agreement at Mansion House in London, Tuesday. (Shinhan Bank)

Shinhan Bank said Wednesday that it has signed an agreement worth 1 billion pounds ($1.25 billion) with the United Kingdom Department for Business and Trade to invest in the country's infrastructure and environmental sectors.

On Tuesday, the memorandum of understanding signing ceremony took place with the attendance of British Business and Trade Secretary Kemi Badenoch and Shinhan Bank CEO Jung Sang-hyuk, at the mayor's residence in London.

Under the deal, the Seoul-based bank will invest in the environmental, social and corporate governance sectors of the UK and make joint investments with financial bodies under the British government in the next five years.

Along with its global network in London, the Korean bank aimed to secure continuity and long-term certainty with the UK government, it said.

The bank will also collaborate with Shinhan Financial Group subsidiaries -- Shinhan Asset Management, Shinhan Life and Shinhan Securities -- to invest an additional 1 billion pounds in the future. Once achieved, the financial giant as a whole would get to invest a total of 2 billion pounds in the UK government.

In order to materialize the agreement into concrete achievements, the Korean bank plans to operate a steering committee and consultative body together with the Department for Business and Trade.

Setting London as its hub for global financial business, Shinhan Bank will boost financing and management in Europe, the Middle East and Africa. It also aims to diversify its business portfolio in stocks, derivatives and foreign exchange markets, the bank added.

“We will continue to strengthen and deepen South Korea’s partnership with the UK and create an optimal public-private partnership model,” said a Shinhan Bank official.

Meanwhile, South Korean President Yoon Suk Yeol on Monday went on a four-day state visit to Britain to mark the 140th anniversary of relations between the two nations. The CEOs of South Korea’s top five commercial banks, including Jung, accompanied Yoon as part of a business delegation to help launch talks on a new trade deal.

By Mun So-jeong  (munsojeong@heraldcorp.com)