Massive Restructuring at Shinhan Holdings

Matrix-type reorganization separates wealth management and corporate investment banking

Shinhan Financial Holdings Co. underwent a massive restructuring on Jan. 26 under its so called 'Shinhan-type Matrix System' followed by a personnel shake-up on Jan. 30 to start the new year in a brand new environment, industry sources said recently.
They said the financial holding firm completed its Matrix-type restructuring on its wealth management (WM) sector and corporate investment banking (CIB) sector and underwent a personnel shake-up in the newly created posts of the sectors, the sources said.
Officials at the financial holdings firm said personnel moves would be completed around Jan. 26 and the new units would go online around that time.
When the restructuring is completed, the WM sector and CIB sector will be assigned to Shinhan Bank and Shinhan Financial Investment Co., respectively, unlike in the past when the heads of those sectors were treated as CEOs of affiliate firms of Shinhan Financial Group, and will attend the top management meeting of the group, they said.
The financial holding firm undertook the restructuring just to separate the sectors and put them under two different affiliates for maximum synergy and profits from their operations.
The WM sector will move into the Shinhan Bank building near Namdaemun (South Gate) in downtown Seoul, since it requires many wealthy individual customers, while the CIB sector will stay with the Shinhan Financial Investment Co. building in Yeouido, Seoul, where there are many financial institutions, for the creation of synergy, the sources said.
The WM Sector is made of a support unit and business unit. The support unit includes the Investment Product and Service units and the planning unit, while the business unit has already been in operation with the opening of the PWM (Personal Wealth Management) Center.
The CIB Sector will consist of the CIB Planning and IB Headquarters designed to handle the bond market and overseas plant market to build up their competitive strength.
The Matrix-type restructuring has allowed for the search for corporate customers and to get their deposits first and then to handle the issuance of corporate bonds while also intensifying its overseas project operations.
Vice President Wee Sang-ho of Shinhan Bank will head the WM Sector while also serving as a non-standing member of the Shinhan Financial Investment board and a board member of Shinhan Financial Holdings. Vice President Oh Se-il has been named to head the CIB Sector and will also serve as a non-standing member of Shinhan Financial Investment and a board member of Shinhan Financial Holdings.
"We have to work hard to have the new system take root as soon as possible," officials of the group said. nw

Chairman Han Dong-woo of Shinhan Financial Group.

A view of the Shinhan Financial Group building near South Gate in Taepyeong-ro, downtown Seoul.