Shinhan Bank said Tuesday it has signed a memorandum of understanding with Kakao Mobility to financially support the taxi-hailing company’s employees and cooperate on developing new business models. 

Under the deal, Shinhan Bank will provide loan programs offering favorable interest rates to taxi drivers and employess of nine taxi compnies operated by TJ Partners. The company is a subsidiary of Kakao Mobility, an affiliate of the country’s dominant mobile messenger operator, Kakao.

Also, the two companies will launch a marketing campaign where Shinhan Bank offers different vouchers to its subscribers using Kakao T once they transfer their membership reward points from the cab-hailing platform to the lender’s mobile application Shinhan Plus.

“The business partnership with Kakao Mobility is expected to improve the welfare of taxi drivers, while increasing consumer benefits. (Shinhan Bank) will keep trying to contribute to the development of the local mobility industry and foster its sustainable management centered on environmental, social and corporate governance, or ESG, principles,” said managing director for domestic business Shin Yeon-sik. 

By Choi Jae-hee (cjh@heraldcorp.com)