Shinhan Bank Keeps Up Reforming as Korea's Representative Bank
- Turns to e-Business and digital financing

Shinhan Bank has established itself as Korea's representative bank despite its 22-year operation - the relatively short period - since its establishment as 25 billion won in paid-in capital, invested only by civilians.
Shinhan has grown into a Korean blue-chip commercial bank with 84,135.8 billion won in total assets, 4,555 employees, 55,959.9 billion won in deposits and 476 billion won in operating profits as of the end of 2003. Since its inception, Shinhan has reported black figures for the past 22 years.
Despite the success story, Shinhan Bank is keeping up the fast-changing financial industry to go from strength to strength. In a bid to survive the so-called Big Bang Syndrome - Globalization of the domestic financial market and a series of merges and acquisitions - Shinhan Bank is trying to reform itself, not being complacent about the traditional business methods and existing IT-based systems. In particular, Shinhan is putting more energy into strengthening a firm infrastructure for e-Business and digital financing by setting aside 120 billion won for this year.
Shinhan Bank has recently become the recipient of the 2004 New Media Grand Award in the category of corporate informatization.
On the occasion of being awarded with the honored award, Shinhan Bank President Shin Sang-hun said, "Shinhan has built up advanced business systems and fostered top-class personnel in the domestic financial sector through endless learning and strenuous innovation." The bank will endeavor to maintain the identity of the bank through its holding company, Shinhan Financial Holding and gain momentum for diversifying its businesses and growing into mega-banks, the current trend of the global financial market, he said.
On top of establishing a firm infrastructure for e-Business and digital financing, Shinhan Bank is also considering building up a financial disaster recovery system for the offering stable customer services.
Shinhan is making efforts to reinforce internal capabilities of its IT headquarters though in-house training for employees.
As part of its efforts to support digital financing for customers, the company has tried to provide diverse services through channels such as mobile, Internet and wireless Internet by seeking alliances and cooperation with mobile telecom operators. Shinhan Bank is the first domestic commercial bank to introduce a system under which each business division conducts an independent earnings management. The bank is running an advanced financial risk management system, while continuously making facility investments and overhauling systems in order to raise productivity and efficiency.
Shinhan Financial Holding, since its launch on Sept. 1, 2001, secured operation base by taking up such financial facility as securities, investment banking consultation, asset management, and bancassurance, among others.
After its launch, the company reorganized its operation units so that such financial practices as banking, securities, credit card, bancassurance, investment trust, financial consultation and capital would be included in its business category. Following its take over of Chohung Bank last year, the holding company became a leading integrated financial group with a base for further expansion in the banking sector.
The holding company started with 6 subsidiaries, but it now has 11 with a total assets of 165 trillion won. Shinhan reorganized its business portfolio through mergers and acquisitions and partnership. It developed numerous alternative financial products by taking advantage of its diversified financial network including Shinhan, Chohung Banks and Shinhan Securities and so that customers would be able to benefit from the wide business range of the holding company.
Banking affiliates have been handling the sale of non-banking sector products such as credit card, FNA securities related accounts, asset management, and bancassurance. Banks also are expanding the number of branches that handle stock transactions.
The holding company has also been offering such corporate financial services as investment banking, initial public offering(IPO), equity investment, mergers and acquisitions and restructuring.
Shinhan Financial Holding said this year would be the initial year for synergy effect to take firm hold. Actually, the holding company saw its synergy profit surge to 113.2 billion won, up 300 percent in the first half of this year. By pooling the purchase of material by the group, the holding company has been able to save its expenses by 23 billion won up until August this year and total savings for the group is projected to reach around 31.6 billion won by the end of this year.
For the past three years, the holding company's profits have been rising due to the mergers and acquisitions and synergistic effect from its operations. nw