Strategic Marketing Pays
Off for Shinhan Bank
- Bank to merge with Chohung Bank to become a top bank in the country

Shinhan Bank launched its operation back in 1982 with only three branches, 278 employees and 25 billion won in capital. Despite its short history, the bank's total assets amounted to 83 trillion won at the end of last year, with over 4,800 employees, 388 branches and capital totaling more than 4.1 trillion won. The bank became one of the top banks in the country with its net profit of 844.1 billion won and deposits totaling over 55 trillion won at the end of last year.
The bank's management strategy this year will be focused on the rediscovery of customers through strategic marketing, building the best profit-structure for continued growth, strengthening the base of global competition and building a successful integration base.
The bank will make up its marketing strategy according to different groups of customers with the management system to take control of the segregated marketing strategies for different groups of customers.
The customer segregated marketing strategy will offer an integrated financial service, which breaks down to financial consultant service and strengthening asset management capability, especially in IB and PB sectors. It will provide one portal product and service. It will also attempt to discover new kinds of businesses based on diversified customer needs by expanding ubiquitous banking, foreign exchange asset investment service and developing profit models suited to customer needs arising out of hedge demand.
The customer segregated marketing strategy will also include the development of products and services for each different group of customers and diversify investment products.
Another aspect of the bank's management strategy will focus on deepening its profit base and expand non-interest earnings. It will strengthen and expand interest and fee income through strategic pricing. It will also expand Internet banking and expand low-expense procurement channels. It will also try to expand asset management related to non-interest income including derivative products. The strategy will also call for taking on investment banking and diversification of wholesale banking linked to the capital market.
The bank will build a system to cope with a management crisis by strengthening the management of credit risk and portfolio and taking advance measures under sluggish economic conditions. The bank will also strengthen the integrated risk management system to be ready for the implementation of Basle II. Management of key management indicators will be strengthened to be ready for crisis situations.
For maximization of synergistic profit, one portal logistics channel will be strengthened and raise productivity through an intensive use and promotion of group CRM. The bank will also expand its retail financial service through the strategic linkage with group affiliates.
In order to build its global base for competition toward becoming a representative Korean bank, the bank will promote the strategy to boost its brand value as the first step.
It will also step up its effort to realize continuous customer-oriented system and process by publicizing and creating Shinhan standard for effective BPR project promotion.
Creation, accumulation and use of the intellectual properties will be promoted with the expansion of its joint ownership system.
Through an advanced personnel management system, the bank will strive to create a dynamic corporate culture. It will strengthen the reimbursement system through fair evaluation of performance. It will also provide training courses to produce professional experts in various fields and the establishment of its management system. The bank will intensify the use of the electronic approval system and set up standards for each of its departments. nw