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Shinhan strengthening ties with LS for Green New Deal

Le 10/11/2020 • par By Lee Min-hyung, The Korea Times

Shinhan Bank is strengthening its partnership with LS Group for the government's Green New Deal drive.

Shinhan said Tuesday it had signed a memorandum of understanding on new renewable energy business with LS ELECTRIC whose core business centers on developing smart energy systems and manufacturing electrical power equipment.

The deal came about two weeks after the nation's leading lender clinched a partnership with E1, an LS Group subsidiary that imports and sells liquid petroleum gas.

The recent partnerships between Shinhan and LS affiliates display a willingness to enhance business ties in line with the government's eco-friendly initiative.

Shinhan plans to ask for LS' continuous participation in its projects related to the Green New Deal, which refers to the government's flagship initiative for the nation to achieve a smooth transition into an eco-friendly economy using low carbon, sustainable energy resources.

Earlier, Shinhan Financial Group announced a plan to invest 26 trillion won over the next four years to build a financial environment for the new deal drives. The lender will focus its investment on eco-friendly and innovative projects by offering loans to such businesses.

Shinhan Bank is the main creditor of LS Group, so the lender is known to have a clear understanding of LS' financial structure and can engage in risk management for the group.

Under the partnership between Shinhan and LS ELECTRIC, both sides will make efforts to bring the nation's smart energy and new renewable energy drive to the next level. Shinhan will provide financial support for the latter's eco-friendly energy businesses ― such as solar energy, energy storage systems and other green energy projects.

"We are going to continue tightening strategies partnerships with LS ELECTRIC and other LS affiliates for the nation's green drive," an official from Shinhan said. "The latest partnership with LS was part of our efforts to build a foundation and infrastructure for the development of an eco-friendly industry nationwide. We will also continue to seek more partnerships with the nation's major corporations in the area of eco-friendly businesses."

LS ELECTRIC also said it would keep enhancing ties with Shinhan to seek new future growth engines in the green area.

"We are expanding our footsteps into wider and more comprehensive eco-friendly energy areas," an official from the company said. "LS ELECTRIC has expertise in smart energy solutions that can back up the government's green drive. We will keep tightening our strategic alliance with Shinhan, so that both sides can generate tangible outcomes in the areas."

LS ELECTRIC is one of the country's leading operators of smart grids, which are infrastructure where suppliers and consumers can exchange energy-related information in real-time for smarter energy storage and consumption.

"Our energy expertise will be of great help for the government's green initiative, and we will do the utmost for the nation's early and stable transformation toward becoming an eco-friendly powerhouse."

Aside from financial support, Shinhan will also provide financial consulting services for LS' upcoming green projects, the lender said.

Last year, Shinhan also signed a marketing partnership with LS Mtron, another LS affiliate developing industrial machinery and parts. Under the partnership, Shinhan provided loans for major clients of LS Mtron in countries such as Vietnam, Indonesia and Cambodia.