Shinhan Revives Innovation DNA with Back-to-Basics Push

On July 7, 1982, a light drizzle fell from early morning on the opening day of Shinhan Bank. It was the day 341 Korean-Japanese shareholders pooled 25 billion won in capital to launch the bank.

"It was the moment to awaken Korea's dormant financial sector," the late Lee Hee-kun, founder of Shinhan Bank, once recalled. "We founded Shinhan Bank, Korea's first purely private-capital bank, with the spirit of serving the nation through finance and building a new Korea."

Carrying the aspirations of Korean-Japanese residents, Shinhan Bank recorded 17,520 customer visits and 35.748 billion won in deposits on its opening day alone—1.5 times its initial capital. That was how Shinhan Bank took its first step into Korean financial history.

As Shinhan Financial Group Chairman Jin Ok-dong's reappointment has been virtually confirmed, the group's innovation drive is accelerating, with the chairman emphasizing the founding spirit from 40 years ago. Industry observers predict the focus will be on reviving the "innovation DNA" to achieve qualitative growth.

Indeed, Shinhan, which launched as Korea's sixth commercial bank, has been synonymous with "firsts." The bank was the first in Korea to introduce the low counter (consultation desk) and high counter (deposits, withdrawals, and utility payments) system. Under the belief that customers are king, bank employees would stand and bow at 45 degrees when customers entered. Staff also conducted door-to-door sales at traditional markets using mobile coin carts—an early model of mobile banking units. Shinhan Bank's first advertising slogan was "Shinhan Bank is a new bank from A to Z."

These characteristics were conceptualized into the "7B" management philosophy: Bank for National Wealth, Bank of Retail, Bank of Community, Bank of Disclosure, Bank of Effectiveness, Bank of Worldwide, and Bank of New Age.

Shinhan employees demonstrated strong commitment. Chairman Jin recently met with former Finance Minister Lee Yong-man, who served as Shinhan's second president, and recalled: "At the time, President Lee would stand in front of the old Cosmos Department Store in Myeongdong and shout loudly, 'I'm Lee Yong-man. Please use Lee Yong-man,' playing on the similar pronunciation of his name and 'use' in Korean." Even today, it is rare for a bank president to personally engage in street marketing. Though now discontinued, the bank had a practice called "maengpye," where employees would face each other and shout "Get out!"—meaning get out and sell. Staff also promoted the bank on streets and buses.

The market is watching whether Chairman Jin's declaration to revive Shinhan's dynamism and innovation from 40 years ago will bring fresh winds to the financial sector. The fact that new technologies such as artificial intelligence and stablecoins are penetrating the financial industry makes Shinhan's moves even more noteworthy. Chairman Jin already signaled intensive change and renewal by making surprise executive appointments at subsidiaries on January 5.

"It means reviving the innovative spirit from the early founding days," said Cho Yong-byoung, chairman of the Korea Federation of Banks and former Shinhan Financial Group chairman, on January 7. "It likely means upgrading Shinhan's core values of 'doing right,' 'moving fast,' and 'being different' to fit the digital era."