Shinhan Financial Group is poised to significantly accelerate its global expansion initiatives, following a landmark achievement of exceeding 1 trillion won ($675 million) in overseas pre-tax profit last year. This strategic direction was articulated by Chairman and CEO Jin Ok-dong in a comprehensive shareholder letter released on Thursday.
Highlighting a pivotal moment in Korean finance, Jin stated, “Last year, Shinhan Financial reached a highly significant milestone by surpassing 1 trillion won in pre-tax profit generated from its extensive global network.”
This remarkable figure represents 16.6 percent of the group’s total earnings, firmly establishing its international operations as a critical engine for sustained growth and profitability.
Jin elaborated on the strategic advantage of global markets, noting, “In stark contrast to the saturated domestic market, the robust growth potential in many of our operational countries will substantially boost our return on equity.” He cited Shinhan’s strengthened market presence in key regions like Vietnam as a prime example of this success.
Looking ahead, the Chairman emphasized, “The group is committed to diversifying its global growth drivers through a well-defined long-term roadmap. This includes innovating our entire business model by enhancing customer engagement channels and rigorously improving operational efficiency across all units.”
A core element of Shinhan Financial Group’s future strategy, Jin also underscored, is the ambitious transformation into an “AI-native company.”
He detailed the group’s vision for artificial intelligence: “Repetitive tasks are being automated through advanced AI systems, empowering our employees to concentrate their expertise on generating higher value-added outcomes.” Jin further highlighted the accelerated pace of AI adoption, evidenced by initiatives such as a generative AI competition for executives and the establishment of dedicated AI teams last year.
The shareholder letter also showcased Shinhan’s unwavering commitment to enhancing shareholder returns. The group proudly announced that its shareholder return ratio surpassed 50 percent last year, significantly ahead of its original 2027 target, reinforcing investor confidence.
Addressing the broader global economic landscape, Jin identified the intensifying geopolitical competition between the US and China as a unique opportunity for Korean companies.
“With the US continuing its strategic reassessment concerning China, Korean companies are increasingly recognized globally as vital strategic supply partners, highly valued for their technological prowess and superior quality,” he observed.
Jin concluded with an optimistic outlook: “I anticipate this favorable trend will persist for the next five to ten years. This presents an opportune moment for Korean companies to expand investments strategically and bridge existing technological gaps.”
