Shinhan Bank’s program for offering financial support for startups has offered up to 468.2 billion won ($460 million) in low-interest loans in just a year since it first kicked off.

The bank’s program was designed mainly to offer financial support for small and midsized firms that boast strong growth potential based on innovative ideas and quality products. It hopes to use the fund to help create more jobs in the sector in order to contribute to the local economy in general.

“I urge all of our employees to make sure they can offer the necessary aid to companies that become financial unstable despite having the potential to become successful,” said Shinhan Bank CEO Suh Jin-won.

His comments also echo the Park Geun-hye administration’s initiative for boosting startups and entrepreneurs in a bid to usher in the era of the “creative economy.”

“The fund is showing significant performance, not to mention that the program itself has much to boast about since up to two-thirds of it is offered without any collateral, meaning they (the loans) are based solely on credit,” said a Shinhan Bank official.

He stressed that the whole point of the program was to think outside of the box to offer the kind of support that would really help the companies.

And that’s not all Shinhan offers.

In March this year, the bank joined hands with several government-run credit guarantee agencies to exempt certified startups from insurance entrance fees for collective surety.

This way, the bank believes entrepreneurs can be encouraged to try starting new businesses without the fear of going bankrupt.

Furthermore, Shinhan also has a three-year plan lined up for supporting startups, with the first phase unfolding this year with the completion of the groundwork. During the second phase, extending to 2015, the firm will focus on building the right infrastructure to analyze firms’ potential. In the third and final phase, the company will seek to develop a self-screening tool with which it can independently assess and support entrepreneurs.

By Bae Hyun-jung (tellme@heraldcorp.com)