Shinhan Financial Group has solidified its top position in the financial industry by rejoining the 2 trillion won club in net profit last year, led by Chairman Han Dong-woo. The group’s performance is more enviable as it came while the financial industry has been faced with tough problems, including low interest rates and increases in the loan loss provisions, with a number of large firms defaulting on their loans.
But Shinhan Financial has been doing fine for the past seven years, coming on top in the financial industry in terms of net profit, showing that no rivals in the industry appear to be able to topple the group. It’s firmly placed on top of the industry for the foreseeable future.
The secret for the financial group has been its risk management capability and its strong corporate culture, which has been called the “Shinhan Way.”
The Compassionate Finance, which took place as the group’s mission since 2011, has also been tagged as one of the core forces that driving the group’s operation. At the time, the group’s top management thought they would have to find a way to grow along with society and customers, otherwise the group could not only bank on its future, but its survival.
With such a view of the world by chairman Han, the group has been working to warm up the world with its financial activities. While its rivals in the industry have been engrossed with profitability, growth and health, the group has been toying with the idea for sustainability and seeking ways to survive with customers and society.
Financial market sources said the group’s operation has made revolutionary changes following the operation to put the group in the current position, although some wondered if the changes could be made with the financial industry as it still faces the same risks.
But the group quieted down the concern of the financial market by boosting its performance since 2011 — far better than its rivals.
The compassionate finance mission has deep roots in the group’s operation by beating its rivals and also strengthening its brand power to help at home and abroad.
In his New Year’s address, Chairman Han said the group should not rest on its laurels. It should fully cope with the changes taking place in the financial market, such as fintech and others.
The group decided to make “Practicing Shinhan, Growing Together” its slogan for the year, judging that its strategy has been working from the point of view of its customers, and the flow of social changes. The group should work together in one direction and in one mind in pursuing its strategies to continue to lead the financial industry and to be a global financial group in no time.
Chairman Han is certain that the group’s mission of being “A Compassionate Finance, Together in Future” will help the group to grow as a sustainable enterprise in the current uncertain environment for the financial industry.
In his fifth year as the chairman of the group, the financial industry wonders how much more Chairman Han could accomplish, after overcoming the current problems in the financial environment in the wake of boosting Shinhan Financial Group’s position over others since taking over the group.
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