New service streamlines fund disbursement process for foreign investors

Shinhan Bank headquarters. [Shinhan Bank]
Shinhan Bank headquarters. [Shinhan Bank]

Shinhan Bank on Tuesday launched a dedicated escrow service for foreign direct investment, aimed at improving transaction security and fund disbursement efficiency between foreign investors and domestic companies.

Under the service, once an FDI filing is made and investment funds arrive, the bank holds the money in a separate account and releases it to the domestic company only after all preconditions set out in the investment agreement have been met. The arrangement lets foreign investors reduce the risk of premature disbursement, while giving domestic companies assurance that payment will follow once contractual obligations are fulfilled.

To mark the launch, Shinhan Bank will waive escrow service fees in full for early customers. The bank plans to offer specialist consultations through its dedicated FDI unit, Shinhan FDI Partners, in coordination with external law firms. Established in June last year, Shinhan FDI Partners provides comprehensive financial solutions covering the full investment process — including FDI filings, account opening and fund execution — as well as foreign exchange transactions and acquisition financing advisory services.

"Drawing on our global financial network and expertise in foreign direct investment, we will actively support the smooth inflow of overseas capital into Korea and help domestic companies attract investment," a Shinhan Bank official said.


ehkim@heraldcorp.com