Value context and insight. lkm@koreatimes.co.kr
Shinhan Financial to prioritize convenience, innovation, ESG values
Shinhan Financial Group Chairman Cho Yong-byoung speaks at the online ceremony for the group's 20th anniversary. Courtesy of Shinhan Financial Group
By Lee Kyung-min
By Lee Kyung-min
Shinhan Financial Group pledged that it will place greater emphasis on convenience, innovation and safety to enhance customer satisfaction ― a new set of goals outlined on its 20th anniversary, which fell on Wednesday.
The group's asset total stands at 626 trillion won ($540 billion) as of June, over a 10-fold increase from the 56 trillion won total assets it had at its launch in September 2001. The group's net profit in the first six months of this year was over 2.49 trillion won, up from 221 billion won 20 years ago.
Shinhan Bank Vietnam, the group's most lucrative banking subsidiary set up in the Southeast Asian country, ranked first among foreign banks there for the widest network and best financial performance. Its 41 branches reported a combined 58.4 billion won in net profit in the January-June period, up from 57.7 billion won, year-on-year. The figure for the first half accounts for 48 percent of the 120.6 billion won in overseas net profit registered by Shinhan Bank. The gains from global businesses amount to 10 percent of the group's net profit.
Shinhan Financial has 16 subsidiaries, including, among others: Shinhan Bank, Shinhan Card, Shinhan Investment, Shinhan Life Insurance, Shinhan Capital, Shinhan Asset Management and Shinhan Savings Bank. It has what it calls a “matrix of five financial services,” three of which are global investment banking, pension management and wealth management.
Shinhan Financial Group Chairman Cho Yong-byoung said that the group will strive to improve the customer experience, defined by easier, more convenient and more innovative services.
“It is high time that we initiated a cultural revolution to become the best,” Cho said during the online ceremony to mark the group's 20th anniversary. “We should no longer remain hesitant about removing customary practices that do not serve customers.” The comments call for a major change in the mindset of the group leadership and immediate subsequent implementation of what he considers new and improved values to fundamentally reorient the group's corporate culture.
Also among the group's top priorities is the advancement of environmental, social and governance (ESG) goals, a new initiative Cho considers will determine the long-term growth path of the firm.
“Let us align the internal protocol and work process with ESG values and increase our digital capabilities to become a true leader in the industry.”
Shinhan Financial recently established a committee devoted to promoting ESG values. The committee will strengthen the group's eco-friendly drive for net-zero carbon emissions, create an ecosystem for sustainable growth and lead the group's ESG-related businesses.