Chairman Han Dong-woo of Shinhan Financial Group.

A view of the building where the financial group has its offices near South Gate in Seoul.(Photos:Shinhan Financial Group)

Shinhan Bank was established in 1982 by a number of Korean residents in Japan with the motto, “To make contributions to the mother country’s economic development through finance.”

Such a lofty ideal was passed down by the bank’s officers and staff, and in the 30 years since then, Shinhan Financial Group has been able to stand firmly as a leading financial group in Korea.

Since his arrival at the financial group as chairman in 2011, Chairman Han Dong-woo has inherited the ideal and incorporated it into the mission of the bank: “Compassionate finance to travel together in the future.”

The theme includes the intention to travel together with customers and society as a financial group to grow and develop. Some in the financial industry point out the capacity for risk management, which Shinhan is proud of, and its strong corporate culture as the strong points for the group, but some also note the group’s major operational theme, “Compassionate Finance to travel together in the future,” as a main engine for growth. The theme shows that the group’s ultimate purpose is different from those of its rival financial groups.

Since 2011, the financial group has managed its operations under the compassionate finance theme, which means working for the benefit of the world, to go along with Chairman Han’s thoughts that neither growth nor guarantee for survival can be attained if they fail to live together within the society they belong.

When other financial companies were jostling with earnings, soundness and growth, Shinhan always had bigger goals: to get along with society and customers, rather than focusing squarely on profits.

Compassionate Finance has become the foundation for judgment and direction for its management in conducting all of its assigned tasks. Some in the financial market think the ideal helped the group’s management strategies put the group where it is today. However some expressed doubts if the foundation can go as far as taking root in the financial market when all kinds of risks still exist. 

Since 2011, the group has performed its rivals, giving the market confidence in its management tenant.

The group not only outperformed others, but it also has strengthened the management tenant of “Compassionate Finance” as a broader part of its brand power, and in doing so boosting its reputation at home and abroad.

The upgraded tenant “Compassionate Finance that travel together in the future” has become a representative slogan for the group. Shinhan pledges to work for the benefit of the world. It will build a new structure for mutual survival together with customers with better financial products and services and fund management in the financial industry’s original operation areas.

Chairman Han’s respectable management ideal to not pursuing profits over the interests of customers won him the Top CEO in the Asia-Pacific region award by the Asian Banker magazine. It was a first for a Korean banker.

Last year, everyone within the group worked hard to let their customers know the difference that the Compassionate Finance has made in comparison with the management ideals of other financial groups. All personnel at the group, from CEOs to staff, worked hard to let the world know what Compassionate Finance is all about. 

They strengthened measures to protect customers with stronger support for the general public and SMEs. They did that with financial products and services that show what Compassionate Finance is really all about. 

The group will keep pushing Creative Finance as a means to practice the Compassionate Finance.