Shinhan Financial Group's overseas operations function through a system that assigns different roles to each region to stabilize the overall revenue structure. The group has divided responsibilities among Money Market Center (MMC) branches, Southeast Asian local subsidiaries, and equity investments in emerging markets, with each pillar designed to complement the others' weaknesses.
The London and Singapore branches serve as Shinhan Financial's primary MMC hubs. MMCs benchmark financial techniques from advanced markets and secure foreign currency liquidity for the group by raising dollar funds. They function more as global financial hubs performing investment banking and fundraising rather than traditional deposit-and-loan operations. The numbers support this role. The London branch's assets expanded dramatically from 1.31 trillion won in 2015 to 8.30 trillion won last year, while the Singapore branch's assets surged from 834.2 billion won to 4.17 trillion won over the same period. In September last year, the Singapore branch became the first among Korean commercial banks to close a risk participation sell deal.
Southeast Asian subsidiaries have adopted a strategy of entering local financial ecosystems through retail banking. In Vietnam and Indonesia particularly, the group has made non-face-to-face channels the core engine of retail growth through advanced mobile banking. As a result, the Vietnamese subsidiary's assets expanded approximately sixfold from 2.20 trillion won in 2015 to 13.11 trillion won last year, while net profit grew from 56.6 billion won to 259.1 billion won. Over the same period, the Indonesian subsidiary's assets surged ninefold from 276.8 billion won to 2.35 trillion won. Net profit, which stood at merely 1.2 billion won, expanded dramatically to 22.3 billion won.
In India, an emerging market, the group's equity investment approach stands out. A prime example is the acquisition of a 10% stake in Credila, an Indian education finance company. Credila is the top financial company in India's student loan sector with a stable customer base. Through this equity investment, Shinhan Financial entered the Indian financial market while securing access to local retail finance structures and customer data. This is interpreted as a phased approach to expanding its business foundation, considering India's financial environment where market size is substantial but regulation and competition are intense.
Central Asia represents another growth frontier. Shinhan Financial maintains three footholds in Central Asia: Shinhan Finance in Kazakhstan (a Shinhan Card subsidiary), Shinhan Kazakhstan Bank, and Shinhan Bank's representative office in Uzbekistan. Shinhan Kazakhstan Bank has expanded its market role by absorbing policy demand through increased support for SMEs, women, youth, and green finance, with assets surging from 63.5 billion won in 2015 to 2.09 trillion won.
SBJ in Japan serves as the link connecting these three pillars. SBJ's assets stood at 17.04 trillion won as of last year, the largest share within Shinhan Financial. With net profit of 179.2 billion won, the unit plays the role of "eldest brother," providing both scale and stability. Analysts say it provides portfolio stability while acting as a counterbalance among the pillars.
"Southeast Asia handles growth, MMC hubs provide capital market functions, and SBJ serves as a stable earnings base—each hub's role appears clearly defined," a financial industry official said. "Overseas operations have moved beyond simple market entry to function as a portfolio strategy."