[비즈한국] Shinhan Financial Group Chairman Jin Ok-dong’s reappointment has effectively been confirmed. The Shinhan Financial Group Chairman Recommendation Committee announced that it has selected current Chairman Jin Ok-dong as the final candidate for the next chairmanship. Chairman Jin has been well-received for driving earnings growth at Shinhan Financial Group since taking office in 2023. As he takes the helm for another three years, focus is now on whether he will succeed in achieving tasks such as providing productive financial support and implementing plans to enhance corporate value.
The Shinhan Financial Group Chairman Recommendation Committee held interviews for the CEO and Chairman position at the Shinhan headquarters on December 4, after which they recommended current Chairman Jin Ok-dong as the final candidate. This comes about two months after the management succession process began on September 26. On November 18, the committee had finalized a shortlist featuring Chairman Jin, along with Shinhan Bank CEO Jung Sang-hyuk, Shinhan Securities CEO Lee Sun-hoon, and one undisclosed external candidate. While the inclusion of Lee Sun-hoon, who does not have a background in banking, drew industry attention, the selection of Chairman Jin proceeded as expected.
The committee explained its recommendation, stating, "Chairman Jin possesses the well-rounded abilities required of a chairman, based on the experience and expertise accumulated while serving as CEO of Shinhan Bank and Chairman of Shinhan Financial Group," and added, "He has proven his capability as chairman by delivering outstanding performance over the past three years."
Beyond financial results, the committee also gave high marks for the "Value-up" project promoted during his term to boost corporate value, as well as his efforts to establish a culture of internal control and strengthen fundamental management. Chairman Jin Ok-dong will take office as the next chairman following approval at Shinhan Financial Group's regular general shareholders' meeting and board of directors meeting in March 2026. If reappointed, his term will last until March 2029.
Since Chairman Jin took office, Shinhan Financial Group's earnings have been on an upward trend. In 2023, his first year, the group’s net profit increased from 4.368 trillion won to 4.5157 trillion won in 2024. Cumulative net profit through the third quarter of this year reached 4.4609 trillion won, already surpassing the level seen at the end of last year. Including fourth-quarter results, the annual net profit for 2025 is expected to exceed 5 trillion won.
Maintaining a smooth relationship with the current administration is also a strength. Chairman Jin succeeded in being reappointed, defying predictions that a change in leadership might occur following the change in administration. In August, he was the only head of the five major financial groups to attend the Liberation Day ceremony where President Lee Jae-myung’s inauguration ceremony took place. He also aligned with government policies by representing the banking sector at the "Korea Investment Summit" held at the New York Stock Exchange in September, followed by the "National Growth Fund Report Conference."
Despite his successful reappointment, Chairman Jin faces significant challenges. First, he must fulfill the key financial agendas of the Lee Jae-myung administration: productive and inclusive financial support. In November, Shinhan Financial Group announced the 110 trillion won "Shinhan K-Growth! K-Finance! Project." The core of the project is to provide 110 trillion won in productive and inclusive finance over five years until 2030, and to strengthen the essential functions of finance, such as capital intermediation, risk-sharing, and growth support.
To promote this productive financial project, Shinhan Financial Group established a group-wide integrated management organization called the "Productive Finance PMO" in September. Major subsidiaries including the bank, capital, securities, and savings bank participate to establish implementation plans, which will be integrated into the group's management plan in December.
Strengthening the non-banking sector and global profits is also a task. In January 2023, Shinhan Financial Group unveiled a blueprint to "achieve a 30% global profit share and 50% non-banking profit share by 2030." However, as the non-banking sector has underperformed compared to banking, the profit share of the non-banking sector decreased from 35% in 2023 to 24% in 2024. To improve ROE, Shinhan Financial Group has set a roadmap to structurally improve the non-banking sector between 2025 and 2027 to reduce costs and increase earnings.
The share of overseas business profits increased from 12.6% in 2023 to 17.1% in 2024, but it has since decreased to 15.4% in the third quarter. Since taking office, Chairman Jin has been active in global operations, personally participating in overseas investor relations meetings. This year, he also conducted on-site due diligence in emerging market countries such as Poland, Kazakhstan, and Uzbekistan.
Chairman Jin is now also tasked with achieving the corporate value enhancement (Value-up) plan announced during his tenure. In July 2024, Shinhan Financial Group announced a Value-up plan aiming for the following by 2027: △ROE of 10%, △Shareholder return rate of 50%, △Common Equity Tier 1 (CET1) ratio of 13%, and △a reduction of 5 million shares. In a letter to shareholders sent in March this year, Chairman Jin expressed his determination to implement the plan, stating, "We were able to preemptively announce the corporate value plan and confirm high market expectations," and added, "We will turn the dream of 2024 into the reality of 2027."
As of the third quarter, Shinhan Financial Group is maintaining its target levels with a CET1 ratio of 13.6% and an ROE of 11.1%. Regarding shareholder returns, the group is accelerating efforts, primarily through treasury share cancellation, with a target of a shareholder return rate of over 42% in 2025. It established a plan to acquire and cancel 1.25 trillion won in treasury shares this year, and as of the third quarter, it has completed the acquisition of 828.1 billion won worth of shares. It plans to acquire and cancel 321.9 billion won in the fourth quarter, and another 200 billion won in January 2026.
The securities industry predicts that achieving these goals is possible. Choi Jung-wook, an analyst at Hana Securities, forecasted, "The current CET1 ratio leaves room to increase the shareholder return rate. There should be no problem maintaining a CET1 ratio of 13.5% through the end of the year," and added, "I expect the 2025 shareholder return rate to be around 46%. The 2026 shareholder return rate will likely exceed 48%."
Meanwhile, while pursuing shareholder returns and productive finance simultaneously, efforts must also be made to maintain sound financial health. Shinhan Financial Group has maintained relatively stable soundness. The Non-Performing Loan (NPL) ratio, a key indicator of soundness, has consistently declined from 0.81% in the first quarter of this year to 0.8% in the second and 0.76% in the third. The group's cost-of-credit ratio, which indicates asset quality and profitability, also fell to 0.46% as of the third quarter, compared to 0.47% in 2024.