New collaboration between the UK government and a top Korean banking company will unlock £2 billion of investment into Britain, boosting economic growth and driving forward the government’s Plan for Change.
Shinhan, the Republic of Korea’s second largest bank, aims to finance the investment over the next 5 years into energy, digital assets, infrastructure projects as well as businesses based in the UK’s thriving financial services sector.
The bank’s expansion and investment plans follows £460 million the business has already invested in the UK since 2023. This latest vote of confidence reaffirms the UK’s position as a global investment destination.
The plans back the government’s aim to significantly increase long-term business investment following the publication of the Modern Industrial Strategy, which marks a new era of collaboration between government and high growth industries, slashing energy bills for industry, increasing skills, and boosting investment to unlock the UK’s economic potential.
Minister for Investment Baroness Poppy Gustafsson opened the expanded office for Shinhan Bank in London earlier this month and met with President and CEO of Shinhan Bank, Jung Sang Hyuk.
Minister for Investment Baroness Poppy Gustafsson CBE said: “The UK is a top investment destination, and Shinhan’s latest investment will help us make the UK the number one destination for financial services by 2035, delivering on our Plan for Change."
“Financial Services are a UK success story, and one of the eight growth sectors we identified with the biggest potential for growth in our modern Industrial Strategy, as we look to boost the economy and put more money in people’s pockets."
Shinhan Bank President & CEO Jung Sang Hyuk said: "The expansion of London office is a strategic decision aimed at proactively responding to the rapidly changing financial environment and delivering greater value and higher-level services to our customers. The (Shinhan) Head Office will remain fully committed to providing strong support, enabling London office to take on an even more central role within London's financial market and to grow together as a trusted financial partner."
Securing foreign direct investment is key to delivering economic growth, and companies like Shinhan investing billions in the UK economy shows the government's Plan for Change is working – creating jobs and putting more money in working people’s pockets.
The news also builds on the positive findings from Deloitte's latest survey which found that finance leaders see the UK as the joint-most attractive destination when it comes to investment.
Economic growth is the Government’s central mission and unlocking new investment opportunities with South Korea is vital to achieving this, as the UK looks to build on the £21 billion record-level of investment the country has attracted from Korean businesses.
This major investment comes just days after the Chancellor Rachel Reeves announced the Financial Services Growth and Competitiveness Strategy, which aims to position the UK as the number one destination for financial services companies by 2035.
Today’s announcement also follows the Minister for Investment Poppy Gustafsson’s visit to South Korea earlier this month, where she met a range of investors and businesses including SeAH, Hana Bank and Korea Investment Corporation (KIC) to encourage further investment into the country.
