Shinhan Card announced on Dec. 28 that Shinhan Finance, its subsidiary in Kazakhstan, will receive a joint investment of approximately 31 billion won over the next five years following the completion of a partnership agreement with Aster, a top-tier automotive dealer in Kazakhstan.
The agreement enables Shinhan Finance to transform into a joint venture (JV) company with a capital base of about 62 billion won. Aster is expected to ultimately acquire approximately 49.9% of the JV's equity through this phased investment.
This significant partnership with Aster marks a pivotal evolution for Shinhan Finance from an affiliate relationship to a joint venture business. The strategic collaboration aims to establish the company as a leading “retail-focused financial institution” in Kazakhstan’s Micro Finance Organization (MFO) market.
The contract signing, held in the afternoon of Dec. 27 at Shinhan Card’s headquarters, was attended by key representatives from both companies, including Moon Dong-kwon, president of Shinhan Card; Alexey Bakal, chairman of Aster Group; and Askar Burunchin, president of Aster.
Moon Dong-kwon commented, “Building on our leading financial expertise in the domestic industry, Shinhan Finance is poised for a new leap forward through this joint investment. Our ongoing exploration of the local market will continue to evolve Shinhan Finance into a 'retail-focused financial institution,' with plans to grow into a top 3 multi-finance company.”