Shinhan Financial Shifts Focus From Expansion to Quality Localization

Shinhan Financial Group Chairman Jin Ok-dong encouraged the company's Vietnamese subsidiary last year, saying "we need to work harder" despite its strong performance. The message was clear: significant gains in net profit and growth notwithstanding, much work remains ahead. Now is the time to advance to the next level rather than rest on current achievements.

Chairman Jin strongly believes the group must evolve from quantitative growth to qualitative localization. A Shinhan Financial official said, "The goal is not competition among foreign banks, but direct competition with large local banks," adding that "securing a viable growth structure is the core objective."

As he prepares for his second term, Chairman Jin is envisioning an elevated "Localization 2.0" strategy. After his reappointment was confirmed in December last year, he told reporters that "qualitative growth is the key keyword for my second term." He explained, "In the first term, I focused on transitioning from P/L-centered management to B/S-centered management. To become a sustainable company, stability of financial structure matters more than the size of profits."

This direction is being directly applied to overseas business strategy. While the past focus was on expanding local branches and securing a retail base for territorial expansion, the analysis suggests future emphasis will be on simultaneously improving asset quality, funding structure, and customer base stability. The overseas business must not only serve as the group's growth engine but also take root as a foundation supporting the overall financial structure.

Industry consensus holds that global business maturity cannot be measured solely by external indicators such as local employee ratios or branch counts. Shinhan Financial plans to pursue localization across three elements—assets, customers, and employees—while maximizing the local customer experience.

A Shinhan Financial official emphasized, "While we are achieving remarkable quantitative growth, building genuine competitiveness in global business requires more fundamental and substantive localization." The official added, "Beyond simply offering price competitiveness to local customers, we will pursue qualitative localization by enhancing actual satisfaction through financial transactions and providing sophisticated financial solutions."