CEO says lender leading Korean banks’ globalization with 59 network channels in 14 nations


Shinhan Bank plans to offer high-end financial products by launching an upgraded business sector this year that connects the commercial bank and its brokerage affiliate.

“We are about to introduce the independent business sector. It is designed to elevate synergy between Shinhan Bank and Shinhan Investment Corp.,” bank president & CEO Suh Jin-won told The Korea Herald.

While the bank and the securities firm operate separately, a group will be formed to work for the independent entity combining the specialties of the two major units of Shinhan Financial Group, he said.

The combined services, the first of their kind in the local market, are mainly focused on “wealth management” and “corporate investment banking.”

“For retail customers, the new entity’s staff of the WM business division will offer services such as investment advisory and finance advisory,” Suh said.

The service has been piloted at Shinhan’s four private-banking branches since December.

He said corporate customers will be able to enjoy preemptive risk management tools in consultation with the entity’s CIB business division for procurement and settlement services.

The two Shinhan units as well as their parent Shinhan Financial Group predict the WM and CIB businesses will offer high-end customer value and play a significant role as future growth potential.

“Coming operations are certainly more important than the new entity itself,” the CEO said. “We will continue to supplement details via feedback between the staff and customers.”

The “bank plus brokerage” business unit of Shinhan could be a role model for upgrading of the nation’s financial industry.

Shinhan Bank has also designated its “global business” as one of the core sectors for future growth, Suh said.

“We’ve attained momentous growth in overseas markets in terms of network expansion, profitability and risk management.”

Last year, the bank opened six overseas branches ― two in Japan, two in Vietnam, one in Cambodia and one in China.

It operates 59 overseas networks ― 57 branches and two representative offices ― in 14 countries.

In foreign countries, it has been operating a variety of programs to foster human resources as part of its long-term vision for wider global projects.

But due to externally unfavorable factors in the wake of the eurozone debt crisis, Suh stressed that Shinhan will put priority on sustainable growth rather than aggressive expansion in 2012.

“For the sustainable growth, we plan to strengthen operating power in major branches in key markets ― Japan, China, Vietnam and India,” he said.

The bank is mapping out differentiated strategies to achieve so-called “glocalization,” aimed at effective coping with each country’s market situations.

Domestically, Suh stressed the significance of elaborating the smart phone-oriented banking service.

“We will open an investment advisory service through video phone calls between employees and customers in February,” he said.

In addition, the bank aims to develop “tailored branches” to meet a variety of customer needs in consideration of regional conditions and “on and off-line combined branches.”

He also vowed to expand support for the underprivileged in society, which will involve micro-loans for lower-income brackets.

CEO Suh has the goal of making Shinhan one of the top 10 commercial banks in Asia and No. 1 in Korea by 2015.

Suh, who began his career as a banker in 1977 after graduating from Korea University, joined the commercial bank in 1983.

Since being named deputy CEO of the bank in 2004, he has held executive-level posts, including group vice president, at the parent Shinhan Financial Group.


By Kim Yon-se (kys@heraldcorp.com)