An Occasion for a Fresh Start

Shinhan Bank celebrates 5th anniversary of merger with Chohung Bank, resolves to value customers' patronage


(L)President Suh Jin-won of Shinhan Bank. (R)President Suh gives his congratulatory speech at a ceremony marking the 5th anniversary of the merger with Chohung Bank
on April 1.

Shinhan Bank celebrated the fifth anniversary of its merger with Chohung Bank in a ceremony held at its head office in downtown Seoul on April 1 under the theme of “New Start, 2011,” with some 250 of its officials and staff in attendance.
The theme is meant to encourage employees of the bank to step up their work to make the bank a top bank adored by its customers.
President Suh Jin-won unveiled the bank’s new vision entitled, “Becoming a new top bank opening its new future adored by its customers.” The vision included three major objectives: creating conditions to make the bank a place to work with fun and pride; creating visible results by strong on-the-spot management; and launching a future reform schedule for new challenges.
During the ceremony, citations and awards were presented to a number of exemplary employees in recognition of their contributions to the growth of the bank. About 200 officers and staff at the bank’s headquarters office visited the shopping areas around Namdaemun and presented gifts in appreciation of their patronage to the bank. The bank’s regional headquarters around the country did the same for customers in their regions on April 5 and 6.
The bank unveiled its new set of corporate characters, “Shinee” and “Hanee,” designed to secure customers through its brand and to strengthen its marketing to attract more customers to the bank. The characters will be used in various communication mediums for the bank including branch nameplates, passbooks, advertising and public relations materials and gifts, among others.
President Suh Jin-won of Shinhan Bank said he is very confident that both Shinhan Financial Group and Shinhan Bank will achieve the best performance results this year. He said Shinhan Bank will avoid an extensive competition with rival banks, but will increase its assets through a defensive means of operation.
During an interview with media, the CEO said this year Shinhan Financial Group (SFG) has set much higher operational targets than what it did last year. He confirmed that the bank is progressing in the right direction in light of Q1 results, and that targets are seen as achievable barring the development of unexpected problems along the way.
Suh said the bank has yet to fail to achieve its targets since its launch and it was the same when he was the CEO for Shinhan Life Insurance.
Last year, SFG netted 2.383 trillion won in net profit while the bank posted 1.648 trillion won in net profit. This year, SFG is projected to post more than 3 trillion won in profits from its investments in the stock market, while the bank is poised to secure more than 2 trillion won in net profits from securities investments.
He said the bank had its usual year as far as its operations were concerned, as employees went about their business unshaken by the feud among top executives - former SFG chairman Ra, SFG president Shin and Shinhan Bank president Lee - who all resigned at the conclusion of the legal affairs.
He said the internal feud is now over and if SFG pulls in more than 3 trillion won net profit this year, it would be the first time that a financial group exceeded that amount in the financial history of Korea.
Suh said the bank’s assets are projected to increase by 5 percent this year, meaning that soundness in operation will be the focus with the asset growth target matching the economic growth level this year.
He said the bank will monitor closely the household debts and project financing since they have become the most risky financing sectors as the sluggish real estate market and increases in interest rates could make household loan borrowers struggle to make their mortgage payments on time. “We have to employ preemptive means to protect our loans,” Suh stressed.
The CEO also said the bank will reevaluate credit conditions of its corporate borrowers and construction companies in particular, as LIG, a construction firm, was recently placed under court management.He said the bank secured shares of LIG Non-Life Insurance as collateral and its project financing loan amounting to 203 billion won to the construction firm are not in danger. The bank also has decided to take back the right to build a town near Gimpo airport from LIG Construction and give it to other construction firm to be nominated later. nw

Photos on courtesy of Shinhan Bank