Shinhan Investment & Securities said on the 17th that it published a Blue Book titled "Productive Finance I: The era of capital reallocation," which analyzes the need for productive finance and the shift in the capital allocation structure.
The report comprehensively analyzes the direction of changes in the capital market and the financial system and presents the need to build a "productive finance" framework.
Part 1, "Productive finance: State capitalism 2.0," diagnoses the capital allocation structure that has become entrenched around real estate and stable asset, and presents the need to build a productive finance framework that channels capital into strategic industries such as AI, semiconductors, and biotech through a financial platform linking policy finance, private finance, and the capital market.
Part 2, "The beginning of capital cost reallocation and natural selection," analyzes the transition path to a productive finance market through three transmission channels: capital cost reallocation, household funds MoneyMove, and restoration of the exit market. In particular, it said performance-based financing will increase, and the activation of exit and reinvestment markets is expected to be the key variable determining the success or failure of productive finance.
Part 3, "The shift in capital allocation structure and the reorganization of financial roles," looks at how the roles of financial institutions will change in the transition to productive finance. Banks will expand the supply of funds into new areas such as policy funds and technology finance, while securities firms will serve as key capital providers connecting expanded IB venture capital with unlisted investments, IPOs, and even market liquidity supply. In addition, it analyzed that venture capital (VC), as a principal in capital allocation, will see its role expand into a reinvestment facilitator through the secondary market in line with policies to activate the exit market.
Meanwhile, Shinhan Investment & Securities, as a member of the "productive finance task force" being promoted under Shinhan Financial Group's banner of "K-growth, K-finance," is actively fostering venture capital. Reporting directly to the CIB head, it established the IB Integrated Finance Department as a dedicated productive finance unit, and plans to invest 35% of funds raised in venture capital from the first year of its commercial paper launch in 2026.