Jin Ok-dong outlines an AI-native strategy, stronger internal controls, and “productive finance” to lift returns.
Jin Ok-dong, Chairman of Shinhan Financial Group
Shinhan Financial Group Chairman Jin Ok-dong announced on April 9 that he recently sent a letter to shareholders, presenting a vision to uphold the essence embedded in the group’s founding spirit and to create Shinhan’s unique ‘sustainable narrative’.
In the opening of the letter, Chairman Jin cited Ortega’s ‘The Revolt of the Masses’, expressing his resolve not to rest on the laurels inherited from his predecessors. He also conveyed that he deeply discussed the direction of innovation with the management team at the management strategy meeting held at the beginning of the year.
Chairman Jin revealed that last year, to accelerate the AI transformation, the group promoted initiatives such as hosting a generative AI competition for executives and establishing a dedicated AX organization, with plans to ultimately transform Shinhan into an ‘AI Native Company’.
He explained that the group achieved the target shareholder return rate of 50% last year, which was initially set for 2027, ahead of schedule. Furthermore, Shinhan Financial Group set a significant milestone in Korean financial history by surpassing 1 trillion won in global pre-tax profit. In terms of internal control, he emphasized that the principle of “‘internal control is not a cost but a prerequisite’” has been established throughout the organization. This was achieved by expanding the application of the responsibility structure, which the holding company and the bank first introduced in the domestic financial sector, to group affiliates such as securities, life insurance, and asset management, and by reflecting subsidiaries’ efforts to improve internal control in the evaluation and compensation system.
Chairman Jin Ok-dong cited the amendment of the Commercial Act as a key factor in the growth of the Korean stock market, mentioning the process of market trust being formed through three amendments.
He diagnosed that amidst the ongoing US-China competition and protectionist trade policies, Korean companies are being re-evaluated as strategic supply partners based on their technological prowess and quality. He further stated that this trend is expected to continue for about 5 to 10 years, emphasizing that now is the opportune time for Korean companies to expand investment and close technological gaps. Shinhan Financial plans to actively pursue ‘productive finance’ by leveraging this trend as an opportunity to enhance ROE.
Regarding ‘Value-up 2.0’, which is currently being discussed by the board of directors, he announced that the implementation performance of existing plans will be thoroughly analyzed, and investor opinions will be reflected and shared in the near future.
At the end of the letter, Chairman Jin mentioned the ‘7B Management Philosophy’ at the time of Shinhan Bank’s founding in 1982, emphasizing, “A bank for the nation will be realized through productive finance, a trustworthy bank through thorough internal control and risk management, and a global bank through continuous challenges on the global stage.”
Michael Herh
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