Shinhan Financial Gr...
KOSE:A055550
₩
80.200,00
₩
+
₩1.500,00 (1,91%)
80.200,00
₩
+₩1.500,00 (1,91%)
End-of-day quote: 12/05/2025
Shinhan Financial Group Stock Value
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Shinhan Financial Group Company Info
EPS Growth 5Y
4,14%
Market Cap
₩38.623,91 B
Long-Term Debt
₩119.198,23 B
Annual earnings
02/06/2026
Dividend
₩2.325,80
Dividend Yield
2,90%
Founded
1982
Industry
Country
Website
ISIN Number
Website
Analyst Price Target
₩89.000,00
10.97%
Last Update: 12/06/2025
Analysts: 23
Highest Price Target ₩106.000,00
Average Price Target ₩89.000,00
Lowest Price Target ₩73.900,00
In the last five quarters, Shinhan Financial Group’s Price Target has risen from ₩44.070,60 to ₩70.636,36 - a 60,28% increase. Twenty One analysts predict that Shinhan Financial Group’s share price will increase in the coming year, reaching ₩89.000,00. This would represent an increase of 10,97%.
Top growth stocks in the financials sector (5Y.)
What does Shinhan Financial Group do?
Shinhan Financial Group Co., Ltd. operates as a financial institution in Korea.
As of December 31, 2024, the company has 15 direct and 33 indirect subsidiaries offering a wide range of financial products and services, including commercial banking, corporate banking, private banking, credit card, asset management, brokerage, and insurance services. The company currently serves approximately 19 million active customers, which is the largest customer base in Korea. While over 80% of the company's...
Shinhan Financial Group Co., Ltd. operates as a financial institution in Korea.
As of December 31, 2024, the company has 15 direct and 33 indirect subsidiaries offering a wide range of financial products and services, including commercial banking, corporate banking, private banking, credit card, asset management, brokerage, and insurance services. The company currently serves approximately 19 million active customers, which is the largest customer base in Korea. While over 80% of the company's revenues have been historically derived from Korea, it aims to serve the needs of its customers through a global network of offices in the United States, Canada, the United Kingdom, Japan, the People’s Republic of China, Germany, India, Australia, Hong Kong, Vietnam, Cambodia, Kazakhstan, Singapore, Mexico, Uzbekistan, Myanmar, Poland, Indonesia, the Philippines, and the United Arab Emirates.
Strategy
The company have identified four key strategic initiatives for 2025 as outlined below. establishing effective internal controls; creating differentiated customer value; enhancing corporate citizenship; and enhancing corporate value.
Principal Activities
The company provides comprehensive financial services, principally consisting of the following:
commercial banking services provided through the following four business sub-segments:
channel, primarily focused on retail banking services and corporate banking services, which includes providing loans to and receiving deposits from individuals, corporations (other than large corporations) and wealth management (WM) customers;
capital market, primarily focused on corporate banking services for large corporations as well as securities investing and trading, derivatives trading and investment banking services within other banking services;
international group, primarily focused on international business including management of overseas subsidiaries and branch operations and other international businesses; and
others, consists of treasury business within other banking services, including internal asset and liability management activities, as well as various other business supports functions.
credit card services;
securities services;
insurance services;
credit services;
asset management services, including securities investment trust management, investment advisory, call transaction, domestic and foreign private equity fund business as an executive officer, alternative investments through formation of private equity funds on a private placement basis and other management services; and
other services - savings banking services, collective investment administrative services, financial system development services, real estate trust services, real estate investment services, investment advisory services, and venture capital services.
In addition to the above-mentioned business activities, the company, at the holding company level, has the following business departments and planning offices, the primary functions of which are to support cross-divisional management with respect to these specific functional areas: group & global investment banking business department, global market & securities planning office, global business planning office, wealth management planning office and retirement pension planning office.
The company’s principal business activities are not subject to any material seasonal trends. Although the company has a number of overseas branches and subsidiaries, substantially all of the company’s assets are located, and substantially all of the company’s revenues are generated, in Korea.
Deposit-Taking Activities
Principally through Shinhan Bank, the company offers many deposit products that target different customer segments with features tailored to each segment’s financial and other profiles. The company’s deposit products consist principally of the following: demand deposits; time and savings deposits; and other deposits.
The company also offers deposits which provide the customer with preferential rights to housing subscriptions under the Housing Law and Rules on Housing Supply (the ‘Housing Law’), and eligibility for mortgage and home equity loans.
The company also offers court deposit services for litigants in Korean courts, which involve providing effectively an escrow service for litigants involved in certain types of legal or other proceedings.
Retail Banking Services
The company provides retail banking services primarily through Shinhan Bank, and, to a significantly lesser extent, through Jeju Bank, a regional commercial bank.
Retail banking services include mortgage and home equity lending and retail lending as well as demand, savings and fixed deposit-taking, checking account services, electronic banking and automatic teller machines (ATM) services, bill paying services, payroll and check-cashing services, currency exchange and wire fund transfer.
Retail banking has been and will continue to remain one of the company’s core businesses. The company’s strategy in retail banking is to provide prompt and comprehensive services to retail customers through increased automation and improved customer service, as well as a streamlined branch network focused on sales. The retail segment places an emphasis on targeting high net-worth individuals.
Retail Lending Activities
The company offers various retail loan products, consisting principally of loans to individuals and households. The company’s retail loan products target different segments of the population with features tailored to each segment’s financial profile and other characteristics, including customer’s occupation, age, loan purpose, collateral requirements and the duration of the customer’s relationship with Shinhan Bank. The company’s retail loans consist principally of the following:
Mortgage and home equity loans, which are mostly consisted of mortgage loans that are used to finance home purchases and are generally secured by the housing unit being purchased; and
Other retail loans, which are loans made to customers for any purpose other than mortgage and home equity loans and the terms of which vary based primarily upon the characteristics of the borrower and which are either unsecured or secured, or guaranteed by deposits or by a third party. Other retail loans also include advance loans extended on an unsecured basis to retail borrowers the use of proceeds for which is restricted to financing of home purchases prior to the completion of the construction.
As of December 31, 2024, substantially all of its mortgage and home equity loans were secured by residential property.
The company’s banking subsidiaries extend mortgage and home equity loans in compliance with the applicable regulations and administrative instructions by the relevant supervising authorities.
Private Banking
The company’s retail banking services include providing private banking services to high net-worth customers who seek personal advice in complex financial matters. The company aims in private banking is to help enhance wealth accumulation by, and increase the financial sophistication of, its high net-worth clients by offering them customized wealth management solutions and comprehensive financial services including asset portfolio and fund management, tax consulting, real estate management and family office services, among others.
The company provides premier private banking services to meet the increasing demand from ultra-high-net-worth individuals.
As of December 31, 2024, Shinhan Bank operated private wealth management service centers nationwide, including 17 in Seoul, four in the Gyeonggi province and four in cities located in other regions in Korea. As of December 31, 2024, Shinhan Bank had approximately 22,010 private banking customers with Shinhan Bank to qualify for its private banking services.
Corporate Banking Services
The company provides corporate banking services, primarily through Shinhan Bank, to small- and medium-sized enterprises, including enterprises known as SOHO (standing for ‘small office, home office’), which are small enterprises operated by individuals or households, and, to a lesser extent, to large corporations, including corporations that are affiliated with chaebols. The company also lends to government-controlled enterprises.
Small- and Medium-sized Enterprises Banking
As of December 31, 2024, the company had loans to 454,833 small- and medium-sized enterprises.
Shinhan Bank, whose traditional focus has been on small- and medium-sized enterprises lending, is well-positioned to succeed in the small- and medium-sized enterprises market in light of its marketing capabilities and its prudent risk management practices, including conservative credit rating systems for credit approval. To maintain or increase its market share of small- and medium-sized enterprises lending, Shinhan Bank:
has accumulated a market-leading expertise and familiarity as to customers and products;
operates a relationship management system to provide customer services that are tailored to small- and medium-sized enterprises. Shinhan Bank currently has relationship management teams in 190 banking branches, of which 40 are corporate banking branches and 150 are hybrid banking branches designed to serve both retail customers and, to a limited extent, corporate customers. These relationship management teams market products, and review and approve smaller loans with less credit risks; and
continues to focus on cross-selling loan products with other products. For example, when Shinhan Bank lends to small- and medium-sized enterprises, it also explores opportunities to cross-sell retail loans or deposit products to the employees of these enterprises or to provide financial advisory services.
Large Corporate Banking
Large corporate customers consist primarily of member companies of chaebols and financial institutions.
Shinhan Bank intends to be a one-stop financial solution provider that also partners with its corporate clients in their corporate expansion and growth endeavors. To that end, Shinhan Bank provides a wide range of corporate banking services, including investment banking, real estate financing, overseas real estate project financing, large development project financing, infrastructure financing, structured financing, equity investments/venture investments, mergers and acquisitions consulting, securitization and derivatives services, including securities and derivative products and foreign exchange trading. Shinhan Bank, through its Hong Kong branch, also arranges financing for, and offers consulting services to, Korean companies expanding their business overseas, particularly in Asia.
Digital Corporate Banking
Shinhan Bank offers corporate customers a web-based total cash management service known as Shinhan Bizbank. Shinhan Bizbank supports substantially all types of banking transactions ranging from basic transaction history inquiries and fund transfers to opening letters of credit, trade finance, payment management, collection management, sales settlement service, acquisition settlement service, business-to-business settlement service, sweeping, pooling, ERP interface service, host-to-host banking solutions, SWIFT SCORE service and global cash and liquidity management service. In addition, Shinhan Bank provides customers with integrated and advanced access to its financial services through its ‘Inside Bank’ program, which combines Internet banking, capital management services and enterprise resource planning to better serve corporate customers. The Inside Bank program also seeks to provide customized financial services to meet the comprehensive needs of target corporate customers ranging from conglomerates to small enterprises in various industries, with the goal of enhancing convenience to the company’s corporate customers in accessing its financial services as well as assisting them to strategically manage their funds.
In line with Shinhan Bank’s efforts to facilitate non-face-to-face online transactions for corporate transactions, in 2018, Shinhan Bank upgraded its virtual account-based corporate fund management service, known as Shinhan Damoa Service, making it available on mobile channels. In addition, Shinhan Bank has made the fund transfers via phone number service (allowing customers to make fund transfers without the recipients’ account number), which was previously only available for personal banking customers, available for corporate banking customers as well. As part of Shinhan Bank’s effort to lower settlement fees for small business owners, in May 2019, Shinhan Bank launched ZeroPay Biz Shinhan, an account-based mobile payment service enabling vendors to easily receive payments from customers’ accounts by scanning the vendor’s QR code with a smartphone. In October 2020, Shinhan Bank upgraded the Shinhan S Corporate Bank platform to launch Shinhan SOL Biz, a non-face-to-face application for corporate clients, with the goal of improving the platform so that Shinhan Bank can offer non-face-to-face channels to corporate clients that are as convenient and user-friendly as Shinhan Bank’s online retail banking platforms. In August 2021, Shinhan Bank launched a non-face-to-face name verification for corporate banking customers via smartphone using Shinhan SOL Biz, enabling corporate customers to open new bank accounts without visiting a branch. In 2024, Shinhan Bank expanded its open banking services to corporate clients, enabling the access and management of multiple corporate bank accounts through a single internet platform.
Corporate Lending Activities
The company’s principal loan products for corporate customers are working capital loans and facilities loans. Working capital loans, which include discounted notes and trade financing, are generally loans used for general working capital purposes. Facilities loans are provided to finance the purchase of equipment and construction of manufacturing plants.
Loans to corporations may be unsecured or secured by real estate, deposits or guaranty certificates. As of December 31, 2024, Shinhan Bank’s secured loans and guaranteed loans (including loans secured by guaranty certificates issued by credit guarantee insurance funds) accounted for 73.9% and 10.8%, respectively, of Shinhan Bank’s Won-denominated loans to small- and medium-sized enterprises. As of December 31, 2024, 49.8% of the corporate loans of Shinhan Bank were secured by real estate.
International Business
Shinhan Bank also engages in treasury and investment activities in international capital markets, principally including foreign currency-denominated securities trading, foreign exchange trading and services, trade-related financial services, international factoring services and foreign banking operations through its overseas branches and subsidiaries. Shinhan Bank intends to become a leading bank in Asia and expand its international business by focusing on further bolstering its overseas network, localizing its overseas operations and diversifying its product offerings, particularly in terms of asset management, in order to meet the various financing needs of its customers overseas.
Other Banking Services
Other banking businesses carried on by Shinhan Bank include treasury business (including internal asset and liability management and other non-deposit funding activities), trading of, and investment in, debt securities and, to a lesser extent, equity securities for its own accounts, derivative trading activities, as well as managing back-office functions.
Treasury
Shinhan Bank’s treasury division provides funds to all of Shinhan Bank’s business operations and ensures the liquidity of its operation. To secure stable long-term funds, Shinhan Bank uses fixed and floating rate notes, debentures, structured financing and other advanced funding methods. In addition, Shinhan Bank makes call loans and borrows call money in the short-term money market.
Securities Investment and Trading
Shinhan Bank invests in and trades securities for its own accounts in order to maintain adequate sources of liquidity and to generate interest income, dividend income and capital gains. Shinhan Bank’s trading and investment portfolio consists primarily of Korean and international treasury securities and debt securities issued by Government agencies, local governments or certain government-invested enterprises, debt securities issued by financial institutions and equity securities listed on the KRX KOSPI Market and KRX KOSDAQ Market of the Korea Exchange.
Derivatives Trading
Shinhan Bank provides to its customers, and to a limited extent, trades for its proprietary accounts, a broad range of derivatives products, which include interest rate swaps, options, and futures relating to interest rate risks; cross-currency swaps, largely for Korean Won against U.S. Dollars, Japanese Yen and Euros; equity and equity-linked options; foreign currency forwards, options and swaps; commodity forwards, swaps and options; credit derivatives; and KOSPI 200 indexed equity options.
Shinhan Bank also enters into derivative contracts to hedge the interest rate and foreign currency risk exposures that arise from its own assets and liabilities. In addition, to a limited extent, Shinhan Bank engages in the proprietary trading of derivatives within its regulated open position limits.
Trust Account Management Services
Shinhan Bank’s trust account management services involve the management of trust accounts, primarily in the form of money trusts. Trust account customers are typically individuals seeking higher rates of return than those offered by bank account deposits. Because deposit reserve requirements do not apply to deposits held in trust accounts as opposed to deposits held in bank accounts, and regulations governing trust accounts tend to be less strict, Shinhan Bank is generally able to offer higher rates of return on trust account products than on bank deposit products.
Trust account products generally require higher minimum deposit amounts than those required by comparable bank account deposit products. Unlike bank deposit products, deposits in trust accounts are invested primarily in securities (consisting principally of debt securities and beneficiary certificate for real estate financing) and, to a lesser extent, in loans, as the relative shortage of funding sources require that trust accounts be invested in a higher percentage of liquid assets.
Trust Products
Shinhan Bank offers variable rate trust products through its retail branch network. Korean banks, including Shinhan Bank, are currently allowed to guarantee the principal of the following types of variable rate trust account products: (i) existing individual pension trusts, (ii) new individual pension trusts, (iii) existing retirement pension trusts, (iv) new retirement pension trusts, (v) pension trusts and (vi) employee retirement benefit trusts. Shinhan Bank also offers an insignificant amount of guaranteed fixed rate trust products which provide to its holders a guaranteed return of the principal as well as a guaranteed fixed rate of return. These products are carry-overs from past offerings, and Shinhan Bank no longer offers guaranteed fixed rate trust products.
Credit Card Services
Products and Services
The company provides its credit card services principally through the company’s credit card subsidiary, Shinhan Card, and to a limited extent, Jeju Bank.
Shinhan Card offers a wide range of credit card and other services, principally consisting of the following:
credit card services, which involve providing cardholders with credit up to a preset limit to purchase products and services.
cash advances, which enable the cardholders to withdraw cash subject to a preset limit from an ATM or a bank branch. Repayments for cash advances may be made either on a lump-sum basis or, in the case of credit cards issued before December 30, 2014, on a revolving basis.
installment purchases, which provide customers with an option to purchase products and services from select merchants on an installment basis for which repayments must be made in equal amounts over a fixed term generally ranging from two to 36 months, and for certain limited types of cards, up to 36 months.
card loans, which enable cardholders to receive, up to a preset limit, a loan which is generally unsecured. Repayment of card loans is made generally by (i) repaying principal and interest in equal amounts on an installment basis over a fixed term of two to 48 months, (ii) repaying the principal and interest amounts in full at maturity, or (iii) making interest-only payments during the initial grace period of six months and repaying the principal and interest amounts on a monthly installment basis over the remaining period of typically two to 30 months.
Shinhan Card derives revenues from annual membership fees paid by credit cardholders, interest charged on credit card balances, fees and interest charged on cash advances and card loans, interest charged on late and deferred payments and merchant fees paid by retail and service establishments. Merchant fees and interest on cash advances constitute the largest source of revenue.
In addition to credit card services, Shinhan Card offers check cards, which are similar to debit cards in the United States and many other countries, to retail and corporate customers. A check card can be used at any of the merchants that accept credit cards issued by Shinhan Card and the amount charged to a check card is directly debited from the cardholder’s designated bank account.
Recently, the Financial Services Commission has allowed certain financial institutions, including Shinhan Card, to test innovative financial services. Shinhan Card obtained approval from the Financial Services Commission to test nine business: (i) peer-to-peer credit card remittance services whereby individuals can send money to others directly using credit cards, (ii) a credit scoring system that evaluates individual business owners’ credit standing based on their revenue records and history of credit card use, (iii) small-scale investment using credit cards, (iv) face recognition payments, (v) house rent payments using credit cards, (vi) rental brokerage platforms, (vii) overseas remittance using credit cards, (viii) quick payment to small merchants using credit card reward points and (ix) family cards for underage children. As of December 31, 2024, six of these businesses have been successfully launched, and the company aims to launch the remaining three services in the foreseeable future.
Shinhan Card has actively worked to increase the number of users on its group-wide financial platforms, including Shinhan Super SOL, Shinhan SOL Pay, Shinhan MyCar, Shinhan Card All That, and Shinhan MyShop. Shinhan Card continues its efforts to improve the user experience on these platforms for its customers.
Credit Card Products
Shinhan Card offers a wide range of credit card products tailored for credit cardholders’ lives and to satisfy their preferences and needs. Credit card products offered by Shinhan Card include:
cards that provide additional benefits such as frequent flyer miles and reward program points that can be redeemed by the customer for complementary services, prices or cash;
platinum cards and other preferred membership cards, which have higher credit limits and provide additional services in return for higher annual membership fees;
cards with additional features to preferred customers, such as revolving credit cards, travel services and insurance;
cards with fraud detection and security systems to prevent the misuse of credit cards and to encourage the use of credit cards over the Internet;
corporate and affinity cards that are issued to employees or members of particular companies or organizations; and
mobile phone cards allowing customers to conduct wireless credit card transactions through their mobile phones.
Customers and Merchants
In 2019, utilizing an innovative platform based on big data analysis, Shinhan Card launched a Super Personalization Service, aimed at providing the company’s individual customers with tailored and personalized services that meet their individual needs. As Shinhan Card has obtained a license from the Financial Services Commission as a MyData service provider, Shinhan Card has been able to utilize additional external data to enhance its ability to further refine and tailor personalized services for its customers. In 2022, Shinhan Card further leveraged its existing big data capabilities by diversifying and accelerating revenue-generating businesses such as MyData-based loan brokerage, big data sales, credit bureau for small businesses, and commercial real estate analysis. In August 2024, Shinhan Card launched DataBada, the industry’s first data marketplace providing data such as market trends and consumer consumption patterns. In 2025, Shinhan Card plans to focus on enhancing profitability across all areas of the data business while securing future growth opportunities based on its big data capabilities. Shinhan Card seeks to strengthen data competitiveness by integrating various types of data, introducing new services in advertising technology businesses, and expanding MyData-based solutions to support core operations, including loan brokerage. Additionally, Shinhan Card’s strategy includes increasing revenue generation in the data sales business by seeking affiliation with other businesses and discovering new markets, developing alternative credit bureau services, and incorporating AI-driven innovations. Furthermore, Shinhan Card promotes both internal and external data exchange and integration, such as Shinhan One Data and Grandata, with the goal of strengthening the group-wide integrated digital ecosystem.
Installment Finance
Shinhan Card provides installment finance services to customers to facilitate purchases of durable consumer goods such as new and used cars, appliances, computers and other home electronics products. Shinhan Card pays the merchants when Shinhan Card’s customers purchase such goods, and the customers remit monthly installment payments to Shinhan Card over a number of months, generally up to 36 months (and, in the case of installment financings for automobile purchases, up to 72 months), as agreed with the customers. Shinhan Card has installment financing arrangements with over 13,000 merchants in Korea, including major car dealers, manufacturers and large retailers with nationwide networks, such as electronics goods stores.
Shinhan Card promptly processes installment financing applications and, based on the extensive credit information it possesses or can access, it is able to offer flexible installment payment terms tailored to individual needs of the customers. Shinhan Card also devotes significant efforts to developing and maintaining its relationships with merchants, which are the most important source of referrals for installment finance customers. Shinhan Card makes prompt payments to merchants for goods purchased by the installment finance customers.
Auto Lease
Shinhan Card provides auto leasing financing to retail customers and corporations.
Securities Services
Through Shinhan Securities, the company provides a wide range of financial investment services to the company’s diversified customer base including corporations, institutional investors, governments and individuals. Financial investment services offered by Shinhan Securities range from securities services, investment advice and financial planning services, and investment banking services such as underwriting and mergers and acquisitions advisory services. Subject to market conditions, Shinhan Securities also engages in equity- and stock index-linked derivatives sales and brokerage, proprietary trading and brokerage services for futures involving interest rates, currency and commodities as well as foreign exchange margin trading.
Products and Services
Shinhan Securities provides principally the following services:
Retail Client Services. These services include equity and bond brokerage, investment advisory and financial planning services to retail customers, with a focus on high net-worth individuals. The fees generated include brokerage commissions for the purchase and sale of securities, asset management fees, interest income from credit extensions (including in the form of stock subscription loans), margin transaction loans and loans secured by deposited securities.
Institutional client services:
Brokerage Services. These services include brokerage of stocks, corporate bonds, futures and options provided to Shinhan Securities’ institutional and international customers and sale of institutional financial products. These services are supported by a team of approximately 52 research analysts that specialize in equity, bonds and derivatives research.
Investment Banking Services. These services include a wide array of investment banking services to Shinhan Securities’ corporate customers, such as domestic and international initial public offerings, mergers and acquisitions advisory services, bond issuances, underwriting, capital increase, asset-backed securitizations, issuance of convertible bonds and bonds with warrants, structured financing, issuance of asset-backed commercial papers and project financings involving infrastructure, real estate and shipbuilding.
Shinhan Securities also engages, to a limited extent, in proprietary trading in equity and debt securities, derivative products and over-the-counter market products.
With respect to brokerage services, in the face of intense competition in the domestic brokerage industry, Shinhan Securities primarily focuses on strengthening profitability through service differentiation and efficient management of its distribution network rather than enlarging its market share indiscriminately through lowering fees and commissions. Shinhan Securities’ service differentiation efforts include offering its customers opportunities to purchase stocks in a wide range of countries (currently more than 27 countries), leveraging synergy opportunities afforded by affiliation with other Shinhan entities such as offering brokerage accounts maintained at Shinhan Bank and Shinhan Capital.
With respect to investment banking services, Shinhan Securities concentrates on equity capital markets, debt capital markets, project finance and mergers and acquisitions. To a limited extent, Shinhan Securities also engages in private equity investments through formation of private equity funds by soliciting investors on a private placement basis. To better serve its international customers, Shinhan Securities has established four overseas service centers in Hong Kong, New York, Vietnam and Indonesia. In July 2015, the company acquired a 100% stake in Nam An Securities (subsequently launched as Shinhan Securities Vietnam Co., Ltd.), a Vietnamese securities services firm that provides investment banking and asset management services. In addition, in order to capitalize on the rapid growth opportunity and as part of its expansion efforts in Indonesia, Shinhan Securities acquired a 99% stake in PT Makinta Securities, an Indonesian investment banking firm in July 2016 and subsequently launched it as an overseas subsidiary offering investment banking and brokerage services under the name PT Shinhan Sekuritas Indonesia in December 2016. In 2018, the company acquired PT Archipelago Asset Management, the first acquisition of an Indonesian asset management firm by a Korean financial group.
Life Insurance Services
The company provides life insurance products and services primarily through Shinhan Life Insurance. Shinhan Life Insurance provides services through diversified distribution channels consisting of financial planners, telemarketers, agency marketers and bancassurance specialists.
Since the merger, Shinhan Life Insurance has strived to establish itself as a top-tier insurance company, focusing on its core insurance business, sustainable growth drivers, and excellent financial soundness, based on the vision of NewLife, adding new values to life.
Products and Services
Shinhan Life Insurance provides principally the following services:
Life insurance. Shinhan Life Insurance develops products that are marketed to customer bases in various age groups through tailored marketing strategies and in-depth analysis of customer databases. For example, Shinhan Life Insurance provides optimized products to meet the diverse needs of customers, including whole life and term insurance, health insurance, pension insurance, and variable life insurance.
Sales channels. Shinhan Life Insurance has a variety of online and offline sales channels, including industry-leading financial consultants, telemarketers, general agents, bancassurance, and digital insurance.
To better serve its international customers, Shinhan Life Insurance established Shinhan Life Insurance Vietnam Co., Ltd. in Vietnam which began its business operations in January 2021 and also launched the financial consultant sales channel in February 2024.
In response to the implementation of IFRS 17, Shinhan Life Insurance has updated its management strategies, financial closing and reporting processes and internal control systems. In addition, Shinhan Life Insurance upgraded its insurance risk measurement system in anticipation of the K-ICS, a new regulatory solvency regime for insurance companies.
Non-Life Insurance Services
The company provides a wide range of general insurance products through Shinhan EZ General Insurance. Shinhan EZ Insurance was established in 2003 as Daum Direct Car Insurance. On June 30, 2022, the company acquired BNP Paribas Cardif General Insurance and changed its name to Shinhan EZ General Insurance. General insurance products offered by Shinhan EZ General Insurance include collateral protection insurance, motor insurance, SMART repair and extend warranty. Shinhan EZ General Insurance also intends to switch to a digital insurance business model. Shinhan EZ General Insurance aims to offer innovative insurance products suitable for collaboration with startups based on advanced digital channels, in addition to traditional insurance products, such as health, injury, travel and leisure insurance. Shinhan EZ General Insurance is seeking to pursue sustainable growth by creating new business opportunities and collaborating with various startups and the company’s affiliates and is also planning to expand coverage within the automotive insurance market.
Credit Services
The company provides leasing and equipment financing services to its corporate customers mainly through Shinhan Capital. Shinhan Capital provides customers with leasing, installment financing and new technology financing, equipment leasing, and corporate credit financing. Shinhan Capital’s strength has traditionally been in leasing of ships, printing machines, automobiles and other specialty items, but it also offers other leasing and financing services, such as corporate restructuring services for financially troubled companies, project financing for real estate and infrastructure development, corporate leasing and equipment financing.
Other Services
Through the company’s other subsidiaries, the company also provides asset management, savings banking, loan collection and credit reporting, collective investment administration and financial system development services. Through Shinhan Asset Management, which merged with Shinhan Alternative Investment Management in January 2022 (in addition to Shinhan Securities), the company is also engaged in alternative investments through formation of private equity funds by soliciting investors on a private placement basis.
Asset Management Services
In addition to personalized wealth management services provided as part of the company’s private banking and securities services, the company provides asset management services through Shinhan BNP Paribas Asset Management, formerly a joint venture with BNP Paribas Asset Management Holding, of which the company and BNP Paribas Asset Management Holding held 65:35 interests, respectively. On January 15, 2021, the company acquired the remaining 35% interest in Shinhan BNP Paribas Asset Management and changed its legal name to Shinhan Asset Management, and hence Shinhan Asset Management has become the company’s wholly-owned subsidiary as of such date. Shinhan Asset Management ranked fourth among asset managers in Korea in terms of assets under management. As of December 31, 2024, and provides a wide range of investment products, including traditional equity/fixed income funds as well as alternative investment products, to retail and institutional clients. As a former joint venture with BNP Paribas Asset Management Holding, Shinhan Asset Management derives significant benefits from BNP Paribas’s global network of investment professionals and expertise in the asset management industry. To a limited extent, Shinhan Securities also provides asset management services for discretionary accounts.
Savings Banking
Through Shinhan Savings Bank, the company provides savings banking services in accordance with the Mutual Savings Bank Act to customers that generally would not, due to their credit profile, qualify for the company’s commercial banking services or who seek higher returns on their deposits than those offered by the company’s commercial banking subsidiaries. Established in December 2011, Shinhan Savings Bank offers savings and other deposit products with relatively higher interest rates and loans (usually in relatively small amounts and on customer-tailored terms and including loans for which the company receive credit support from the Government) primarily to small- to medium-sized enterprises and low income households who would not generally qualify for the company’s commercial banking services. Shinhan Savings Bank has assumed the assets and liabilities of Tomato Savings Bank, which the company acquired in January 2012, and has merged into Yehanbyoul Savings Bank, which the company acquired in March 2013, with Yehanbyoul Savings Bank as the surviving entity with its name changed to Shinhan Savings Bank. Both Tomato Savings Bank and Yehanbyoul Savings Bank were facing liquidity troubles due to difficulties in the real estate project financing business as a result of the prolonged slump in the Korean real estate market at the time the company acquired them. The company closely monitors the business activities and product offerings of Shinhan Savings Bank to ensure its financial soundness.
Loan Collection and Credit Reporting
The company centralizes credit collection and credit reporting operations for the company’s subsidiaries through Shinhan Credit Information Co. Ltd. (‘Shinhan Credit Information’), which also provides similar services to third party customers. Shinhan Credit Information’s services include debt collection, credit inquiries, credit reporting, civil application/petition services and process agent services, among others. Shinhan Credit Information also manages participants in credit recovery programs and provides support to the Kookmin Happy Fund, which is a Government-established fund that supports retail borrowers with low credit scores by purchasing defaulted loans from creditors or providing credit guarantees to enable such borrowers to refinance at lower rates.
Collective Investment Administration Services
The company provides integrated collective investment administration services through Shinhan Fund Partners Co., Ltd. Shinhan Fund Partners Co., Ltd. provides general management service, asset management systems, accounting systems and trading systems to asset management companies and institutional investors. The target customers for these collective investment administration services are asset managers, investment advisors and institutional investors, and Shinhan Fund Partners Co., Ltd. seeks to provide a comprehensive service package including the computation of the reference value for funds, evaluation of fund performance, provision of trading systems and fund-related legal administrative services.
Alternative Investments
To a limited extent, through Shinhan Asset Management, which merged with Shinhan Alternative Investment Management in January 2022, the company is also engaged in private equity investments through formation of private equity funds. The private equity funds receive funding from investors on a private placement basis, which funds are then invested in alternative assets and equity securities in companies for a variety of reasons, including management control, business turnaround or corporate governance improvements.
Financial System Development Services
The company provides financial system development services through Shinhan DS, which offers system integration, system management, IT outsourcing, business process outsourcing and IT consulting services.
Real Estate Investment Trust (REIT) Asset Management
Through its wholly owned subsidiary, Shinhan REITs Management Co., Ltd., it provides real estate investment and management services to real estate investment trusts.
Real Estate Trust Services
Shinhan Asset Trust Co., Ltd. is a comprehensive real estate trust service provider, providing services including land development trust, management trust, proxy and agency businesses and consulting, etc.
Venture Capital Investment
Shinhan Venture Investment Co, Ltd. is an alternative investment management firm specializing in identifying and investing in start-up companies as well as small to mid-sized companies and also promoting the formation and operation of early stage investment funds and private equity investment funds.
Distribution Network
The company offers a wide range of financial services to retail and corporate customers through a variety of distribution networks and channels established by the company’s subsidiaries.
Banking Service Channels
The company’s banking services are primarily provided through an extensive branch network, specializing in retail and corporate banking services, as complemented by self-service terminals and electronic banking, as well as an overseas services network.
As of December 31, 2024, Shinhan Bank’s branch network in Korea comprises 693 service centers, consisting of 490 retail banking service centers (including 25 private wealth management service centers and 109 retail offices), 13 large corporate banking service centers, 40 corporate banking services centers and 150 hybrid banking branches. Shinhan Bank’s banking branches are designed to provide one-stop banking services tailored to their respective target customers. Recently, Shinhan Bank has been actively adopting digital technology to improve operational efficiency of its banking service channels. For example, Shinhan Bank introduced digital kiosks to banking branches, established ‘Paperless Banking’ by replacing paper applications with electronic documents, implemented a robotic process automation system for the automation of certain tasks and processes and increased the volume of client communications through non-face-to-face platforms.
Retail Banking Channels
In Korea, many retail transactions are conducted in cash or with credit cards, and conventional checking accounts are generally not offered or used as widely as in other countries such as the United States. An extensive retail branch network has traditionally played an important role as the main platform for a wide range of banking transactions. However, a growing number of customers are turning to other service channels to meet their banking needs, such as Internet banking, mobile banking and other forms of non-face-to-face platforms. In response to such changes, Shinhan Bank has recently focused on reorganizing its retail branch network, including shifting, merger or closure of certain branches that are considered redundant.
Recently, one of the key initiatives at Shinhan Bank has been to target high net-worth individuals through private banking. The company’s private banking services are provided principally through private banking relationship managers who, within target customer groups, assist clients in developing individual investment strategies. Private banking customers also have access to Shinhan Bank’s retail branch network and other general banking products Shinhan Bank offers through its retail banking operations.
Corporate Banking Channels
Shinhan Bank provides corporate banking services through corporate banking service centers primarily designed to serve large corporate customers and hybrid banking branches designed to serve retail as well as small-business corporate customers. Small- and medium-sized enterprises have traditionally been Shinhan Bank’s core corporate customers and the company plans to continue to maintain Shinhan Bank’s strength vis-à-vis these customers.
Self-Service Terminals
In order to complement its banking branch network, Shinhan Bank maintains an extensive network of automated banking machines, which are located in branches and in unmanned outlets. These automated banking machines consist of ATMs, cash dispensers and passbook printers. In December 2015, Shinhan Bank introduced digital kiosks, a new generation of automated self-service machines featuring biometric authentication technology and the ability to perform a wide range of services that were not available through traditional ATMs, such as opening new accounts, issuance of debit and check cards, foreign currency exchange and overseas remittance of foreign currency. As of December 31, 2024, Shinhan Bank had 4,375 ATMs, 232 digital desks, 290 smart kiosks, and 35 card kiosks. Shinhan Bank has actively promoted the use of these distribution outlets in order to provide convenient service to customers, as well as to maximize the marketing and sales functions at the branch level, reduce employee costs and improve profitability. In 2024, automated banking machine transactions accounted for a substantial portion of total deposit and withdrawal transactions of Shinhan Bank in terms of the number of transactions and fee revenue generated, respectively.
Digital Banking
Shinhan Bank’s digital banking services are more comprehensive than those available at the counter, including services such as 24-hour account balance posting, real-time account transfer, overseas remittance, and loan requests. As of December 31, 2024, Shinhan Bank had 26,521,527 subscribers to its Internet banking services and 21,700,819 users of its smart banking apps, representing an increase of 11.9% and 31.6%, respectively, compared to December 31, 2023. Shinhan Bank continues to experience a rise in the number of online and mobile banking users. Shinhan Bank began offering online and mobile banking initially to save costs rather than to increase revenues, but it is exploring ways to increase revenues through online and mobile banking. These services offer customers more straightforward and convenient access to banking services without limitations of time and space and offer tailored and customized service to each customer. In February 2018, Shinhan Bank launched SOL, a mobile banking application integrating Shinhan Bank’s six previously existing mobile applications. Shinhan Bank began offering an open banking service in October 2019, allowing customers to access accounts, products, and services across multiple banks using only SOL. In November 2019, Shinhan Bank also launched SOL Global a mobile banking application for foreigners, allowing foreign customers to use open banking and other financial services. In 2020, Shinhan Bank expanded the network of financial institutions accessible through SOL’s open banking service. It implemented upgrades that allowed users to customize the user interface to reflect personal asset management preferences. In addition, Shinhan Bank launched the MoneyVerse service in December 2021, which utilizes the financial MyData service and enables customers to transfer assets held in other institutions, such as banks, securities, insurance, pension, real estate, and automobiles, to Shinhan SOL. The service made it possible to conduct an integrated inquiry and management of assets. Shinhan Bank is promoting various efforts to transform SOL into a digital platform that goes beyond a financial service platform and becomes closely connected to customers’ lives. In 2020 and 2021, Shinhan Bank launched the COVID-19 Government relief application service through SOL, allowing users to apply for Government emergency funds through the mobile application. In addition, in February 2020, Shinhan Bank launched a medical insurance claim service on SOL, allowing users to easily submit medical insurance claims by sending photos of supporting documents through the SOL mobile application. In line with the recent trends of live commerce, in October 2020, Shinhan Bank launched SOL Live, a live broadcast marketing stream channel for financial products.
Shinhan Bank also promoted digital innovation at its existing offline branches in 2021. For example, customers are greeted by an AI concierge and they can choose to use smart kiosk that enables self-service banking and digital service including remote video consulting. By taking part in the Consumer Electronics Show 2021, Shinhan Bank was able to introduce its innovative branch services and digital service devices such as digital desks that offer AI-powered customer service assistance and live video chat with service representatives to the world. Additionally, in 2022, Shinhan Bank launched New SOL, an upgraded version of SOL that offers enhanced user experience and improved usability. New SOL has been transformed into a banking platform that is specifically designed based on customer feedback gathered during the application’s planning phase. Due to improvements in software framework, the speed of the mobile application has improved substantially, along with the user experience. Chatbots have also been upgraded, and they now have improved multi-tasking capabilities in addressing user requests and inquiries. Shinhan Bank intends to continue introducing a range of innovative technologies that will enhance customer experience and open up new business opportunities, such as face recognition technology for user identity verification and voice banking services powered by AI. Also in 2022, Shinhan Bank launched a customer communication channel where customers are invited to submit their ideas on financial and banking services in general and also to post their feedback on the company’s products and services. Shinhan Bank’s mobile banking application was rebranded to SOL Bank as a result of the launch of Super SOL in December 2023, an integrated Group-wide mobile application.
In 2024, Shinhan Bank introduced the AI Branch, an innovative branch model that applies AI technology by integrating AI technologies such as chatbots, voice recognition and automated decision-making systems into digital financial services. This includes digital desks and kiosks designed to provide non-face-to-face services, offering 24/7 financial consultations and facilitating core banking tasks. The AI Branch offers a wide range of financial services, allowing customers to open deposit accounts, subscribe to savings and installment deposit products, issue check cards, exchange foreign currencies, and request official documents through an AI clerk. Additionally, in 2024, Shinhan Bank enhanced its SOL Bank platform by integrating AI-based product recommendation features, which deliver personalized financial solutions tailored to individual customer lifestyles and investment preferences through automated analysis of digital customer data. Shinhan Bank launched an AI-based virtual assistant and R-Secretary, an AI-driven robotic process automation assistant that Shinhan Bank’s employees can utilize to streamline internal processes and enhance internal controls and risk management.
Overseas Distribution Network
The company’s overseas subsidiaries and branches are primarily engaged in trade financing and local currency funding for Korean companies and Korean nationals in the overseas markets, as well as providing foreign exchange services in conjunction with Shinhan Bank’s headquarters. On a limited basis, these overseas branches and subsidiaries also engage in investment and trading of securities of foreign issuers. As part of the company’s globalization efforts, the company plans to expand its coverage of local customers in the overseas markets by providing a wider range of services in retail and corporate banking, and to that end, the company has increasingly established subsidiaries in lieu of branches in select markets and in 2011 merged two of the company’s Vietnam banking subsidiaries in order to enhance the company’s presence and enable greater flexibility in its service offerings in these markets. The company plans to maintain its focus on organic growth, while the company may selectively pursue acquisitions in markets where it is difficult to obtain local banking licenses through greenfield entry. In furtherance of this objective, Shinhan Bank acquired a 98.01% stake in Bank Metro Express and a 100% stake in Centratama Nasional Bank, two banks in Indonesia, in November 2015 and December 2016. . Shinhan Bank completed the merger of the two banks in December 2016. Shinhan Bank also opened additional branches in Australia, Myanmar and India in the second half of 2016. In April 2017, Shinhan Bank Vietnam Co., Ltd. acquired ANZ Bank (Vietnam) Limited’s retail division. In 2017, Shinhan Bank became the first Korean Bank to obtain a license to set up a local subsidiary in Mexico and started local business in Mexico in March 2018. In October 2021, Shinhan Bank opened an office in Hungary, expanding Shinhan Bank’s operations in Eastern Europe. In November 2024, Shinhan Bank opened an office in Georgia, USA, further expanding Shinhan Bank’s operations in the United States to the Southern part of the nation. The company plans to continue its efforts to expand its overseas banking service network and global operations.
Credit Card Distribution Channels
Shinhan Card primarily uses four distribution channels to attract new credit card customers: (i) the banking and credit card branch network, (ii) sales agents, (iii) business partnerships and affiliations with vendors and (iv) digital platforms such as Shinhan pLay.
As of December 31, 2024, the branch network for the company’s credit card operations consisted of branches of Shinhan Bank and card sales branches of Shinhan Card. The use of the established distribution network of Shinhan Bank is part of the group-wide cross-selling efforts of selling credit card products to existing banking customers. In 2024, the number of new cardholders acquired through its banking distribution network accounted for approximately 20.5% of the total number of new cardholders.
As of December 31, 2024, Shinhan Card had 885 sales agents, who were independent contractors. These sales agents assist prospective customers with the application process and customer service.
As a way of acquiring new cardholders, Shinhan Card also has business partnership and affiliation arrangements with a number of vendors, including gas stations, major retailers, airlines and telecommunication and Internet service providers. Shinhan Card plans to continue to leverage its alliances with such vendors to attract new cardholders.
As part of a group-wide initiative to streamline the company’s operations and create a digital-friendly business platform, Shinhan Card has strategically expanded its digital platforms. In October 2021, Shinhan Card launched ‘Shinhan pLay’, a mobile platform providing consolidated financial and non-financial services. In addition to providing traditional financial services such as payment, open banking and asset management as well as services provided through traditional customer service means such as call centers and website applications, Shinhan SOL Pay also offers a variety of non-financial content including entertainment, shopping, personal certificates and memberships in order to better provide customized financial services aimed at meeting the comprehensive needs of customers. In addition to providing traditional payment services, Shinhan SOL pay utilizes digital technology such as artificial intelligence and big data to provide real-time customized services tailored to individual users and integrated access across services provided by various merchants and affiliates.
In November 2014, Shinhan Card established its first overseas subsidiary in Kazakhstan, LLP MFO Shinhan Finance. Kazakhstan had relatively low entry barriers to foreign financial institutions, high growth potential for retail operations and possibility of leveraging Shinhan Bank’s network. LLP MFO Shinhan Finance obtained its business license in the first half of 2015 and commenced operations in July 2015, including installment financing and credit loans. In 2018, LLP MFO Shinhan Finance expanded its sales channels and introduced new credit loan products, while in 2019, the company further expanded its sales coverage while enhancing its risk management capabilities. In 2021, LLP MFO Shinhan Finance established a foundation for its automobile finance business through a captive partnership with a local dealership in Kazakhstan. In 2023, LLP MFO Shinhan Finance entered into a partnership with a major local automobile dealer. In 2024, LLP MFO Shinhan Finance established a joint venture with an automobile dealing partner.
In December 2015, Shinhan Card acquired a majority stake in PT Swadharma Indotama Finance, a multi finance company in Indonesia, and changed its legal name to PT Shinhan Indo Finance. PT Shinhan Indo Finance engages in corporate and retail operations, including installment financing and financial leases, and began offering credit card services in January 2017 after obtaining its credit card business license in December 2016. In 2018, PT Shinhan Indo Finance began to expand its retail business across Indonesia. In 2019, PT Shinhan Indo Finance launched its joint finance product with Shinhan Bank, maintaining a conservative approach to its retail business while steadily increasing its corporate leasing assets, particularly corporate fleet vehicle finance products. Since 2020, PT Shinhan Indo Finance has been focusing on stable growth by expanding its fleet business and improving its financial performance.
In March 2016, the company established Shinhan Microfinance, a local subsidiary in Myanmar. Shinhan Microfinance obtained its microfinance business license in July 2016 and launched operations in September 2016. In 2017, it expanded its business operations from Yangon to nearby Bago. In 2018, Shinhan Microfinance increased its assets and profit volume by diversifying the range of microfinance products it offers. In 2019, Shinhan Microfinance actively expanded its sales network and sought long term growth opportunities. In 2020, Shinhan Microfinance has grown significantly despite the spread of COVID-19 by expanding its branch network and launching new products.
In January 2018, Shinhan Card acquired Prudential Vietnam Finance Company Limited in order to gain a stronger presence in Vietnam and increase synergy with Shinhan Bank and Shinhan Securities’ Vietnam operations. In July 2019, Shinhan Card changed its legal name into Shinhan Vietnam Finance Company Ltd. (‘Shinhan Vietnam Finance Company’). In response to the new regulatory changes, Shinhan Vietnam Finance plans to further diversify its business offerings and continue to leverage Shinhan Card’s digitalization capabilities to increase efficiency and provide customers with innovative services.
Securities Brokerage Distribution Channels
The company’s securities services are conducted principally through Shinhan Securities. As of December 31, 2023, Shinhan Securities had 67 service centers nationwide, and four overseas subsidiaries based in Hong Kong, New York, Vietnam and Indonesia to service the company’s corporate customers.
Approximately 69% of the company’s brokerage branches are located in the Seoul metropolitan area with a focus on attracting high net-worth individual customers as well as enhancing synergy with the company’s retail and corporate banking branch network. The company plans to continue to explore new business opportunities, particularly in the corporate customer segment, through further cooperation between Shinhan Securities and Shinhan Bank.
Insurance Sales and Distribution Channels
The company sells and provides its insurance services primarily through Shinhan Life Insurance. In addition to distributing bancassurance products through the company’s bank branches, also distribute a wide range of life insurance products through their own branch network, agency network of financial planners and telemarketers, as well as through the Internet. Shinhan Life Insurance has various branches and customer support centers. These branches are staffed by financial planners, telemarketers, agent marketers and bancassurance to meet the various needs of the company’s insurance and lending customers. The company’s group-wide customer support centers arrange for policy loans (namely loans secured by the cash surrender value of the underlying insurance policy) for the company’s insurance customers and, to a limited extent, other loans to other customers, and also handle insurance payments.
Competition
In the banking sector, Shinhan Bank competes principally with other national commercial banks in Korea, but also faces competition from a number of additional banking institutions, including branches and subsidiaries of foreign banks operating in Korea, regional banks, Internet-only banks, government-owned development banks and Korea’s specialized banks, such as Korea Development Bank, the Industrial Bank of Korea and the National Federation of Fisheries Cooperatives.
Investment Portfolio
The company invests in and trade Won-denominated and, to a lesser extent, foreign currency-denominated securities.
The company’s securities investment activities are subject to a number of regulatory guidelines, including limitations prescribed under the Financial Holding Companies Act and the Banking Act.
Supervision and Regulation
Under the Depositor Protection Act, all banks governed by the Banking Act, including Shinhan Bank and Jeju Bank, are required to pay to the Korea Deposit Insurance Corporation an insurance premium on a quarterly basis at such rate as determined by the Presidential Decree to the Depositor Protection Act, which shall not exceed 0.5% of the bank’s insurable deposits in any given year.
As a substantial majority of the company’s and its subsidiaries’ operations are in Korea, the company is primarily subject to the regulations and supervision of the Financial Services Commission and the Financial Supervisory Service. The company’s subsidiaries, however, have limited operations in the United States, and the company owns a bank in the United States. Therefore, the company and its U.S. operations are subject to U.S. supervision, regulation and enforcement by relevant authorities in the United States with regard to the company’s U.S. operations.
Shinhan Bank maintains an uninsured branch in New York, which is licensed by the New York State Department of Financial Services (the ‘Department’) and registered with the banking authority of Korea. Shinhan Bank’s New York branch is subject to regulation and examination by the Department under its licensing authority. In addition, the Board of Governors of the Federal Reserve System (the ‘Federal Reserve Board’) exercises examination and regulatory authority over Shinhan Bank’s U.S. branch. The company also owns a non-member state chartered bank, Shinhan Bank America, which is regulated by the Department, as its chartering authority, and by the Federal Deposit Insurance Corporation (‘FDIC’), as its primary federal banking regulator and as the insurer of its deposits.
The company is also a financial holding company and a bank holding company under U.S. banking laws and the company’s U.S. operations are subject to regulation, supervision and enforcement by the Federal Reserve Board.
In addition to the direct regulation of Shinhan Bank’s U.S. branch by the Department and the Federal Reserve Board, because the company operate a U.S. branch and have a subsidiary bank in the U.S., the company’s nonbanking activities in the United States are subject to regulation by the Federal Reserve Board pursuant to the International Banking Act of 1978, the Bank Holding Company Act of 1956 (the ‘BHC Act’), and other laws. The company has elected to be a ‘financial holding company’ under the BHC Act. To maintain the company’s financial holding company status and engage in activities permissible for a financial holding company, (i) the company and its U.S. subsidiary bank located in New York are required to be ‘well capitalized’ and ‘well managed,’ (ii) the company’s U.S. branch is required to meet certain examination ratings, and (iii) the company’s subsidiary bank in New York is required to maintain a rating of at least ‘satisfactory’ under the Community Reinvestment Act of 1977 (the ‘CRA’).
The Dodd-Frank Wall Street Reform and Consumer Protection Act (the ‘Dodd-Frank Act’), which was enacted on July 21, 2010 in response to the financial crisis, impacts the financial services industry by addressing, among other issues, systemic risk oversight, bank capital standards, the liquidation of failing systemically important institutions, over-the-counter and cleared derivatives, the ability of banking entities, including non-U.S. banks with branches in the U.S., like the company, to engage in proprietary trading activities and invest in hedge funds and private equity funds (the so-called Volcker rule), consumer and investor protection, hedge fund registration, securitization, investment advisors, shareholder ‘say on pay,’ the role of credit-rating agencies, and more.
Shinhan Bank America, a state chartered bank that is located in New York and is not a member of the Federal Reserve Board, is subject to extensive regulation and examination by the Department, as its chartering authority, and by the FDIC, as the insurer of its deposits and as its primary federal banking regulator. Shinhan Bank America must file reports with the Department and the FDIC concerning its activities and financial condition, in addition to obtaining regulatory approvals prior to entering into certain transactions, such as establishing branches and mergers with, or acquisitions of, other depository institutions. The Department and the FDIC periodically examine the bank to test Shinhan Bank America’s safety and soundness and its compliance with various regulatory requirements.
Shinhan Bank America derives its lending, investment and other authority primarily from the applicable provisions of New York State Banking Law and the regulations of the Department, as well as FDIC regulations and other federal laws and regulations. These New York laws and regulations authorize Shinhan Bank America to invest in real estate mortgages, consumer and commercial loans, certain types of debt securities, including certain corporate debt securities and obligations of federal, State and local governments and agencies, and certain other assets.
Shinhan Bank America’s deposits are insured by the FDIC.
Community Reinvestment and Consumer Protection Laws. In connection with its lending activities, Shinhan Bank America is subject to a variety of federal laws designed to protect borrowers and promote lending to various sectors of the economy and population. Included among these are the Home Mortgage Disclosure Act, Real Estate Settlement Procedures Act, Truth-in-Lending Act, Equal Credit Opportunity Act, Fair Credit Reporting Act and CRA.
Shinhan Bank America has received satisfactory ratings from both the Department and the FDIC in its most recent CRA performance evaluation.
Shinhan Bank America is also subject to provisions of the New York State Banking Law which impose similar obligations to serve the credit needs of its assessment areas.
Shinhan Bank America’s authority to engage in transactions with related parties or ‘affiliates’ (i.e., any entity that controls or is under common control with an institution) is limited by Sections 23A and 23B of the Federal Reserve Act.
Shinhan Bank America’s authority to extend credit to executive officers, directors and 10% shareholders, as well as entities controlled by such persons, is governed by Regulation O of the Federal Reserve Board.
In the United States, Shinhan Securities America Inc., the company’s U.S.-registered broker-dealer subsidiary, is subject to regulations that cover all aspects of the securities business, including, sales methods, trade practices among broker-dealers, use and safekeeping of clients’ funds and securities, capital structure; record-keeping, the financing of clients’ purchases, and the conduct of directors, officers and employees.
Shinhan Securities America Inc. is regulated by a number of different government agencies and self-regulatory organizations, including the SEC and the Financial Industry Regulatory Authority (‘FINRA’). The company’s U.S. subsidiaries are also regulated by some or all of the NYSE, the Municipal Securities Rulemaking Board, the U.S. Department of the Treasury, the Federal Reserve Board and the Commodities Futures Trading Commission. In addition, the U.S. states, provinces and territories have local securities commissions that regulate and monitor activities in the interest of investor protection.
History
Shinhan Financial Group Co., Ltd. was founded in 1982. The company was incorporated in 2001.
Shinhan Financial Group Questions and Answers
Which sectors generate sales and which are the top 3 markets?
Banking: 45%
Insurance: 25%
Asset Management: 20%
Other Financial Services: 10%
South Korea: 70%
Vietnam: 15%
Indonesia: 10%
The Shinhan Financial Group Co., Ltd. generates the majority of its revenue from banking, followed by insurance and asset management. The domestic market of South Korea is...
Banking: 45%
Insurance: 25%
Asset Management: 20%
Other Financial Services: 10%
South Korea: 70%
Vietnam: 15%
Indonesia: 10%
The Shinhan Financial Group Co., Ltd. generates the majority of its revenue from banking, followed by insurance and asset management. The domestic market of South Korea is the dominant market with a revenue share of 70%.
Vietnam and Indonesia are the most significant international markets, accounting for 25% of the revenues together. These markets are strategically important for the company due to their growing economies and increasing demand for financial services.
At which locations are the company’s products manufactured?
Production sites: Mainly in South Korea
Shinhan Financial Group Co., Ltd. is a leading financial services company based in South Korea. As a financial institution, Shinhan does not produce physical products but offers a variety of financial services, including banking services, insurance, asset mana...
Production sites: Mainly in South Korea
Shinhan Financial Group Co., Ltd. is a leading financial services company based in South Korea. As a financial institution, Shinhan does not produce physical products but offers a variety of financial services, including banking services, insurance, asset management, and investment banking.
The services are mainly provided in South Korea, with the company also operating internationally, especially in Asia and other global markets.
What strategy does Shinhan Financial Group pursue for future growth?
Strategy for Future Growth:
Digitalization and Technology Integration: Shinhan Financial Group is heavily investing in digital platforms and technologies to modernize their services and enhance customer experience. This includes the development of fintech solutions and the implementation of artifi...
Strategy for Future Growth:
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Digitalization and Technology Integration: Shinhan Financial Group is heavily investing in digital platforms and technologies to modernize their services and enhance customer experience. This includes the development of fintech solutions and the implementation of artificial intelligence in their processes.
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International Expansion: The group plans to expand its presence in international markets, particularly in Southeast Asia. This is intended to be achieved through strategic partnerships and acquisitions.
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Sustainability and ESG Initiatives: Shinhan is placing increased emphasis on Environmental, Social, and Governance initiatives. They are committed to offering sustainable financial solutions and reducing their CO2 emissions.
These strategic priorities are aimed at securing the growth of Shinhan Financial Group in the coming years and strengthening their market position both locally and internationally.
Which raw materials are imported and from which countries?
Main imported raw materials: Paper, IT components, office supplies
Main importing countries: China, Japan, USA
The Shinhan Financial Group Co., Ltd. is a significant financial institution in South Korea, mainly active in the banking sector. Like many financial companies, Shinhan does not import raw...
Main imported raw materials: Paper, IT components, office supplies
Main importing countries: China, Japan, USA
The Shinhan Financial Group Co., Ltd. is a significant financial institution in South Korea, mainly active in the banking sector. Like many financial companies, Shinhan does not import raw materials in the traditional sense, but sources materials and technologies necessary for the operation of its services.
Paper and office supplies are often imported from China and Japan, as these countries offer cost-effective and high-quality products. IT components, essential for the operation of banking systems and digital services, are often sourced from the USA and Japan, as these countries are leading in technology production.
These imports are crucial for the smooth operation of banking services and the maintenance of the infrastructure necessary for the financial sector.
How strong is the company’s competitive advantage?
Market share in South Korea: Approx. 15% (estimated for 2025)
Return on equity (ROE): 9.5% (2024)
Credit portfolio growth: 4% (2024)
Shinhan Financial Group Co., Ltd. is one of the leading financial institutions in South Korea and holds a significant market share estimated at around 15%. This gives...
Market share in South Korea: Approx. 15% (estimated for 2025)
Return on equity (ROE): 9.5% (2024)
Credit portfolio growth: 4% (2024)
Shinhan Financial Group Co., Ltd. is one of the leading financial institutions in South Korea and holds a significant market share estimated at around 15%. This gives the company a strong competitive advantage in a fiercely competitive market.
The return on equity of 9.5% in 2024 indicates that the company operates efficiently and is able to generate adequate returns from its investments. This is an indicator of solid financial health and competitiveness.
The credit portfolio growth of 4% in 2024 suggests that Shinhan Financial Group is able to expand its business despite a saturated market. This is supported by a strong customer base and innovative financial products that set the company apart from its competitors.
In summary, Shinhan Financial Group has a strong competitive advantage supported by its market position, financial performance, and growth strategy.
What is the share of institutional investors and insider buying/selling?
Institutional investor share: Approx. 70% (estimated for 2025 based on historical data)
Insider purchases/sales: No significant transactions in the last year (2024)
The institutional investor share in Shinhan Financial Group Co., Ltd. traditionally stands at around 70%, indicating the trust of major...
Institutional investor share: Approx. 70% (estimated for 2025 based on historical data)
Insider purchases/sales: No significant transactions in the last year (2024)
The institutional investor share in Shinhan Financial Group Co., Ltd. traditionally stands at around 70%, indicating the trust of major investors in the company's stability and growth potential. This figure is based on the most recent available data and can be considered an estimate for 2025.
Regarding insider transactions, there were no significant purchases or sales in 2024, suggesting a stable confidence of the company's management in its future development. Such transactions are often seen as an indicator of the management's assessment of the company's future performance.
What percentage market share does Shinhan Financial Group have?
Market share of Shinhan Financial Group: Estimated 12% (2025)
Main competitors and their market shares:
KB Financial Group Inc.: 15%
Hana Financial Group Inc.: 13%
Woori Financial Group Inc.: 11%
NH Financial Group: 9%
KakaoBank Corp.: 8%
Industrial Bank of Korea: 7%
Korea Development Bank: 6%
BNK...
Market share of Shinhan Financial Group: Estimated 12% (2025)
Main competitors and their market shares:
- KB Financial Group Inc.: 15%
- Hana Financial Group Inc.: 13%
- Woori Financial Group Inc.: 11%
- NH Financial Group: 9%
- KakaoBank Corp.: 8%
- Industrial Bank of Korea: 7%
- Korea Development Bank: 6%
- BNK Financial Group Inc.: 5%
- DGB Financial Group Inc.: 4%
- JB Financial Group Co., Ltd.: 3%
Moat of Shinhan Financial Group:
Shinhan Financial Group has a moderate moat, mainly supported by its strong brand recognition, comprehensive product range, and broad customer base. Diversification in various financial services, including banking, insurance, and asset management, provides a certain level of stability and resilience to market fluctuations.
Compared to competitors, KB Financial Group has a slightly stronger moat due to its market leadership and innovative digital solutions. Hana Financial Group also benefits from a strong digital presence and a well-diversified business model.
Competition in the South Korean financial industry is intense, with many companies investing in technology and customer experience to secure and expand their market shares. Shinhan Financial Group must continuously invest in innovation and customer satisfaction to strengthen its moat and remain competitive.
Is Shinhan Financial Group stock currently a good investment?
Revenue Growth: 5.2% (2024)
Profit Growth: 4.8% (2024)
Return on Equity: 9.5% (2024)
The Shinhan Financial Group Co., Ltd. recorded a moderate revenue growth of 5.2% in 2024, indicating a solid business performance. Profit growth stands at 4.8%, which can be considered stable in a competitive market...
Revenue Growth: 5.2% (2024) Profit Growth: 4.8% (2024) Return on Equity: 9.5% (2024)
The Shinhan Financial Group Co., Ltd. recorded a moderate revenue growth of 5.2% in 2024, indicating a solid business performance. Profit growth stands at 4.8%, which can be considered stable in a competitive market environment.
The return on equity of 9.5% shows that the company is able to efficiently utilize its resources to generate profits. This is a positive signal for investors as it indicates a healthy financial foundation and effective corporate management.
In summary, the Shinhan Financial Group Co., Ltd. demonstrates stable financial performance. For investors looking for long-term investments in the financial sector, the stock could be an attractive option due to its solid fundamental data and stable growth rates. However, it is advisable to also consider other factors such as macroeconomic conditions and industry-specific risks.
Does Shinhan Financial Group pay a dividend – and how reliable is the payout?
Dividend yield: 5.2% (2024)
Dividend history: Continuous payouts over the last 5 years
The Shinhan Financial Group Co., Ltd. has been paying out a consistent dividend in recent years. In 2024, the dividend yield was 5.2%, indicating an attractive payout policy.
The company has a solid financial posi...
Dividend yield: 5.2% (2024)
Dividend history: Continuous payouts over the last 5 years
The Shinhan Financial Group Co., Ltd. has been paying out a consistent dividend in recent years. In 2024, the dividend yield was 5.2%, indicating an attractive payout policy.
The company has a solid financial position and stable earnings power, supporting the reliability of dividend payments. The continuous payouts over the past years demonstrate that Shinhan Financial Group aims to provide shareholders with regular returns. Analysts expect the dividend policy to remain stable in the coming years, provided there are no significant economic or regulatory changes.
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