Shinhan Financial Group Chairman and CEO Jin Ok-dong (Shinhan Financial Group)
Shinhan Financial Group Chairman and CEO Jin Ok-dong (Shinhan Financial Group)

Shinhan Financial Group will step up its global expansion after surpassing 1 trillion won ($675 million) in overseas pre-tax profit last year, Chairman and CEO Jin Ok-dong said in a shareholder letter released Thursday.

“Last year, Shinhan Financial achieved a highly meaningful milestone in Korea's finance history by surpassing 1 trillion won in pre-tax profit from its global network,” Jin wrote.

The figure accounted for 16.6 percent of the group’s total earnings, underscoring that its overseas business has firmly established itself as a core pillar of growth.

“Unlike the domestic market, where competition is already saturated, the strong growth potential in some of the countries where we operate will also support improvements in return on equity,” he wrote, referring to how Shinhan has strengthened its presence in markets such as Vietnam.

“Going forward, the group will diversify its global growth drivers based on a long-term roadmap, while innovating its overall business model by enhancing customer channels and improving operational efficiency,” he wrote.

Jin also emphasized the group’s ambition to transform into an "AI-native company."

“Repetitive tasks should be automated through AI, while employees should leverage their expertise to generate higher value-added outcomes,” he said, noting that the group has promoted various initiatives to accelerate AI adoption, including hosting a generative AI competition for executives and establishing dedicated teams for AI last year.

The letter also underlined the group's efforts to strengthen shareholder returns, with the shareholder return ratio surpassing 50 percent last year, ahead of its 2027 target.

Addressing the global economic landscape, Jin added that the intensifying rivalry between the US and China presents an opportunity for Korean companies.

“As the US continues to check China, Korean companies are being recognized as strategic supply partners by countries around the world, based on their technological capabilities and quality,” he said.

“I expect this trend to continue for the next five to ten years. Now is a timely opportunity for Korean companies to expand investment and close technological gaps.”


silverstar@heraldcorp.com