Boosting Synergy
among Affiliates

Shinhan Bank CEO Shin Sang-hoon to tighten operations to avoid risks

President Shin Sang-hoon of Shinhan Bank declared that the bank will try to do its best to maximize the synergistic effect from the merger with Chohung Bank, now that the hardware phase of the work has been completed last year. The bank will work on the software side of the operation including the discovery of new futuristic growth engines.
The Shinhan Bank CEO said this year is the initial year of operation for the merged bank, adding that the bank was able to smooth out a number of problems that came from the integrating the two large banks last year.
The hardest part of the work on the integration of the two banks electronic systems including the Internet banking system, but the job was considered successful, overcoming the initial problems last year. CEO Shin traveled around the country several times last year to see that branches around the country are on track.
The president views this year to be a challenging year for the bank because the Shinhan Financial Group acquired the LG Card last year and Shinhan Bank should be able to expand its customer base this year through the newly acquired credit card operation. Shinhan would be able to share the credit card's database and expand "exchange sales"between the bank and non-banking affiliate when the credit card company officially affiliated with the financial group.
Shin said the maximization of synergy with LG Card is a key objectives the bank's operation this year. Shinhan will try to have the customers of the credit card company to open accounts with Shinhan to pay their debts to the credit card company and for other purposes.
He said the bank needs a new blue ocean for its sustained drive for profit with the current banking industry immersed in excessive competition and becoming a "red ocean."The global banks have been diversifying their operations to look for new sources of income, indicating a lot for us as a model for our future operations.
He went on to say that ING Direct, which brought down the wall between the Internet and finance,
Macquarie Bank, which found a new market in the social overhead capital sector, and Mizuho Bank, which focused on SMEs, are among the global banks that found "blue ocean."The Shinhan CEO said he will also explore overseas financial markets to find a "blue ocean"for Shinhan. The bank will open its third branch in India, after Mumbai, which opened in 1996, and New Delhi last year. The bank also plans to hold mergers and acquisitions to take over a financial institution in countries other than India or take over stakes to expand its overseas presence.
The chief executive said he will stress risk management for the bank with the economy doesn't seem to have bright prospects this year, the worsened profitability for exporters due to the appreciation of the Korean currency and excessive financial burden for households, among others.
He also said he will also focus on making the bank more efficient in operation by streamlining its organizations and making it slim. He wants to avoid overlapping of departmental responsibilities and blank areas of business in particular. He wants the bank to be speedy and creative in operations and be like, a "dancing elephant,"despite its big body.
He also to have the bank take time out for social services, although it is going to be a busy year and he would like spend the weekends with his family and read books to catch up with current affairs.
As of April 1 last year, Shinhan became a giant bank by merging with Chohung Bank with the number of customers totaling over 16 million and the payroll list expanding to 13,700 with branches and depository facilities numbering 926 across the country, in addition to 16 overseas subsidiaries and branches.
Chairman Ra Eung-chan of the Shinhan Financial Group congratulated all officers and staff of the new Shinhan for their hard work during the past two and half years to prepare for the integration the new Shinhan since the merger was announced at the ceremony for the launch of the new Shinhan Bank. nw

President Shin Sang-hoon of Shinhan Bank