Shinhan Bank, after its successful merger with Chohung Bank in 2006, has developed into a sound bank with capital totaling 238 trillion won as of March 2010. The bank has pioneered the Korean industry, introducing ATMs, automated shops, Internet banking, and cyber loans for the first time in Korea, leading Korea’s retail banking industry and establishing an advanced finance system.
Shinhan Bank’s most important management philosophy has been based on ‘customer satisfaction’ since its establishment. The bank has led Korea’s financial services due to management’s fully-fledged support and its employees’ dedication to service provision since opening the Korena banking industry’s first customer satisfaction center.
The bank’s fair and transparent HR management is an important principle and one that has helped shape the bank. Its fair human resource evaluation means it has kept away from academic cliques, factionalism and localism, with it recently implementing a 360-degree multi-faceted capacity evaluation in order to improve the fairness of its HR management.
In addition, Shinhan Bank takes great pride in its strong manpower, in which an employee is equal to a hundred other workers based on its unique HR development programs and mentoring system which enable it to nurture its employees’ superiority.
Shinhan Bank is trying to establish a base for global business in order to find future growth dynamics rather than being content with competing in the local market. Based on its current global networking established under the principle ‘selection and concentration,’ selective network restructuring will take place in areas of strategic importance where risks can be minimized and sufficient profitability guaranteed.
At the same time, centering around the recently reinforced local corporation network, the bank is concentrating on local delivery and the security of local customers in order to realize ‘glocalization (globalization and localization)’ and will continue to secure global competitiveness, such as strong risk management, localization marketing, and global HR strategies based on an in-depth understanding of the language and culture of each country.
In order to secure sustainable growth, the bank established the ‘Shinhan Way,’ as well as helping employees concentrate on the bank’s common goals by forming Shinhan’s unique cultural identity. Therefore, Shinhan Bank will be reborn as a strong bank dedicated to its original business nature.
With its simple but ever stronger Shinhan Culture focusing on the prioritization of customers and sales, fighting spirit, ability-focused recruitment and promotion, and preemptive risk management system, the bank will continue to develop from Korea’s leading bank to one of the world’s greatest.
Since its merger with Chohung Bank on April 1, 2006, the bank has employed 10,695 employees, opened 946 sales branches, and achieved total assets of 238 trillion won (bank, comprehensive financial service, and trust account included) while profits before the allowance for bad debts stood at 1.99 trillion won as of March 2010.
Through the balanced growth of operating and non-operating profits and losses, a net profit of 588.6 billion won and a ROE (return on equity) of 17.51 percent have been realized, as well as a loan ratio of substandard or below of 1.28 percent and a non-performing loans ratio of 0.97 percent, indicating the capital soundness and stable profits maintained through the qualitative growth of assets.
Management ideology and core value
Shinhan Bank, with its vision of ‘THE Bank of Pride,’ aims to become the best bank for its stakeholders and a leader of the Asian banking industry. The management philosophy of Shinhan Bank is to achieve the trust of its customers, to serve members through the challenging change of management, and pursue happiness together.
The new core values include customer-centeredness, mutual respect, change-initiation, aiming for the best, and the spirit of ownership by comprehensively considering historic perspectives, internal issues, and external environmental changes.
Shinhan Bank has developed socially responsible management since the early 1980s and implemented various social responsibility programs in order to grow into a representative service model by pursuing management that incorporates basics, honesty and principles, as well as the value of customer satisfaction and carrying out its responsibilities and roles as a corporate citizen.
Shinhan Bank published its first social responsibility report in 2005, a firstfor the Korean banking industry, and has published regularly every year since so as to share its practice of consistent and socially responsible management.
In order to stand tall as a stronghold for the national economy, advance Korea’s finance industry, contribute to generating more national wealth, and systemically run social responsibility programs, the bank has decided to seek ‘management of coexistence with stakeholders,’ goals and strategies for socially responsible management as well as decision of mid and long term tasks for stakeholders by 2012.
Shinhan Bank pursues management dedicated to basics, honesty, and principles, creating customer satisfaction by increasing customer convenience and promoting wealth, as well as carrying out its responsibilities as a corporate citizen in order to grow into Korea’s representative service model company
Under the CEO’s management philosophy of ‘Bank dedicated to Public Goods,’ the bank will establish a banking business prioritizing customer trust and social interest, returning corporate interest to society through social welfare, academics and education, voluntary activities, environmental conservation, culture and arts, physical education, and the development of public goods, in addition to sharing its performance and values with local communities.
Shinhan Bank, for its enterprise-wise socially responsible management, was awarded the “Global Standard Management Prize” by the Korea Management Association Quality Assurance. It has also received numerous awards from external institutions, including the “Award for Social Contribution to Korea” by the Korea Journalists Forum and the Award for GRI-acknowledged Sustainable Growth Report.
Shinhan Bank, centering around its team dedicated to social responsibility, will focus on related business by considering recent social trends, changes in customers’ awareness, strengthened global standards, and the characteristics of the banking industry so as to establish a concrete and differentiated strategy. It is actively taking part in CSR-related global initiatives, such as the UN Global Compact, UNEP FI, and CDP signees in order to take a leading role in establishing global standards in social responsibility.
Furthermore, the bank is trying to establish an innovative culture through blue ocean, Six Sigma, and knowledge management so as to change its ways of working and thinking, create new markets through the expansion of knowledge management, and excavate future growth dynamics in order to achieve high profits and high growth.
Shinhan Bank will keep driving for its own business, help society achieve its desired goals, and make all stakeholders happy. In order to achieve these aims, the bank prioritizes sustainable banking and systemizes numerous healthy sustainable management programs.