Shinhan Financial Group Chairman Jin Ok-dong said the company will aggressively pursue "productive finance" to boost return on equity as Korean companies are being revalued amid US-China competition. He believes that once housing prices stabilize, household assets will shift to capital markets, making productive finance a new growth driver.
Shinhan Financial Group announced Wednesday that Jin recently sent a letter to shareholders outlining his vision to create Shinhan's own "sustainable narrative."
Jin assessed that Korean stock market growth is not a short-term phenomenon, given institutional changes such as amendments to the Commercial Act. He noted that as US-China competition and protectionist trade policies persist, Korean companies are being revalued as strategic supply partners based on their technological capabilities and quality. If this trend continues for the next five to 10 years, it represents an opportune time for Korean companies to expand investment and close technology gaps, he said.
Shinhan Financial plans to leverage this as an opportunity to raise ROE by aggressively pursuing productive finance. "If housing price increases stabilize, household assets will move to capital markets as an alternative," Jin said. "Productive finance, including corporate lending, can become a new asset growth driver for financial companies."
Shinhan Financial is also preparing "Value-up 2.0" centered on its board of directors. The company plans to thoroughly analyze the implementation results of the existing plan, incorporate investor feedback, and release the updated version soon.
"We will realize 'a bank for the nation' through productive finance, 'a trustworthy bank' through thorough internal controls and risk management, and 'a world-class bank' through relentless challenges on the global stage," Jin said.