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Controversy Arises over Shinhan Banking Group’s Unfair, Immoral Management
Immoral Management
Controversy Arises over Shinhan Banking Group’s Unfair, Immoral Management
  • By Michael Herh
  • June 19, 2017, 03:45
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There have been steady controversies over Shinhan Financial Group’s immoral hiring of sons or daughters of executives and breaching of trust due to illegal loans.
There have been steady controversies over Shinhan Financial Group’s immoral hiring of sons or daughters of executives and breaching of trust due to illegal loans.

 

Han Dong-woo, a former chairman of the Shinhan Financial Group (SHG)
Han Dong-woo, a former chairman of the Shinhan Financial Group (SHG)

 

Controversy is brewing over the disclosure of Shinhan Bank’s preliminary transfer of a son of Han Dong-woo, a former chairman of the Shinhan Financial Group (SHG) to its New York branch. It was also disclosed that the son was not originally recruited in an open recruitment system of the bank but left LG Investment & Securities (currently NH Investment & Securities) in 2004 and moved to Shinhan Bank as a manager of investment banking.

Han resigned from the management team last March and is now serving as an advisor to the Shinhan Financial Group.

There have been steady controversies over many cases where children of executives were hired at the Shinhan Financial Group as not only the son of former chairman Han but a son of former chairman Ra Eung-chan was given a job at Shinhan Bank among others.

"After former chairman Han has been influencing Shinhan as an advisor since his retirement. It is not a coincidence for Han’s son who did not started at Shinhan in the first place to transfer to the New York branch. It is hard for any Shinhan employees to have a change to work at the New York branch." said a former Shinhan Financial Group

A daughter of Lim Young-jin, president of Shinhan Card also joined Shinhan Card as a member of the third class of newly publicly recruited workers at the company in 2012. A son of Kim Hyung-jin, president of Shinhan Financial Investment, has been also working as a full-time employee since the beginning of this year after internship at Shinhan Card.

Shin Sang-hoon, a former president of Shinhan Financial Group, who was involved in the Shinhan Incident, an internal struggle over control of the management right to the Shinhan Financial Group among executives in 2010, was accused of the misappropriation of management consulting fees, a breach of trust due to illegal loans and a violation of the Financial Holding Company Act. Recently, his charges were uncovered in a court of law.