[비즈한국] Shinhan Financial Group held its general shareholders' meeting on the 26th and decided on the reappointment of Chairman Jin Ok-dong. Since Shinhan Financial Group has led performance improvements during his tenure, the financial sector largely expected the possibility of Chairman Jin's reappointment to be high. With this, Chairman Jin will lead Shinhan Financial Group until March 2029. However, the National Pension Service (NPS) Fund Management Headquarters opposed his reappointment. Furthermore, the Lee Jae-myung administration showed a negative stance on the consecutive terms of financial holding company chairmen. In short, the sentiments surrounding Chairman Jin were not entirely favorable.
National Pension Service: "Someone with a History of Damaging Corporate Value," Pointing to the Lime Fund Scandal
As of the end of last year, the stake in Shinhan Financial Group held by the National Pension Service (NPS) stood at 9.03%, making it the largest single shareholder. However, as a large number of foreign shareholders, who are major shareholders of Shinhan Financial Group, cast votes in favor, it did not act as a significant obstacle to Chairman Jin Ok-dong's reappointment.
The NPS recently voted in favor of the reappointments of Woori Financial Group Chairman Yim Jong-yong316140 and BNK Financial Group Chairman Bin Dae-in138930. Among the major financial holding companies, it was only against the reappointment of Chairman Jin Ok-dong. The NPS stated that Chairman Jin falls under the category of "individuals with a history of damaging corporate value or infringing upon shareholder rights."
Shinhan Bank was previously embroiled in controversy over the incomplete sale of Lime Asset Management funds. At the time, Chairman Jin was the bank's president. The Financial Supervisory Service's Sanctions Review Committee issued a 'cautionary warning' to Chairman Jin in 2021. Furthermore, in 2022, the Financial Services Commission imposed a partial business suspension of three months and a fine of 5.7 billion won on Shinhan Bank. Because of this, the NPS also opposed Chairman Jin's appointment as chairman of Shinhan Financial Group in 2023.
In its explanatory materials for the agenda, Shinhan Financial Group clarified its position, stating, "It is excessive to conclude that an individual candidate has significantly damaged corporate value or infringed upon shareholder rights based solely on the fact that sanctions were imposed on Shinhan Bank, and to link this directly to the agenda for appointing him as a director."
Shinhan Financial Group was also embroiled in controversy last year after it was revealed that it had invested in IMS Mobility. IMS Mobility is a company where Kim Ye-seong, a butler to First Lady Kim Keon-hee, was involved in its founding and management. Because of this, suspicions were raised about whether major companies invested in IMS Mobility as a quid pro quo. However, the Kim Keon-hee Special Prosecutor Team (Special Prosecutor Min Joong-ki) was unable to establish a relationship between the companies that invested in IMS Mobility and First Lady Kim Keon-hee.
The Lee Jae-myung administration also showed a negative reaction to the reappointment of chairmen of major financial holding companies. Financial Supervisory Service Governor Lee Chan-jin said at a press conference last December, "It seems everyone has a high desire for reappointment," adding, "The problem is that this desire is operating too excessively." This shows that while it is true that Chairman Jin led the increase in performance, the environment surrounding him was not entirely favorable.
Tasks Remaining After Reappointment: Strengthening Non-Banking Sectors and Accelerating AX
For Chairman Jin Ok-dong, he must prove his capability through performance. It is true that Shinhan Financial Group's performance increased during his tenure. However, it has consistently lagged behind its competitor, KB Financial Group105560, and has not managed to reclaim the title of 'Leading Financial Group' (Related Article: KB Financial Group is the #1 Financial Group for 3 Consecutive Years… Attention on the 'Reappointed' Shinhan Financial Group).
The financial sector identifies 'strengthening non-banking sectors' as a top priority for Shinhan Financial Group. The assessment is that the performance of the non-banking sector has significantly contributed to Shinhan Financial Group lagging behind KB Financial Group. In particular, Shinhan Card's net profit decreased by 16.68% from 572.1 billion won in 2024 to 476.7 billion won in 2025.
Chairman Jin Ok-dong has recently been emphasizing the acceleration of AX (AI Transformation) and DX (Digital Transformation). In January of this year, Shinhan Financial Group held a launch ceremony for 'AX Innovation Leaders' and announced its transition to a company-wide AX execution stage focused on on-site operations. On March 24, it signed a business agreement with NC AI for the "advancement of AI-based future financial channels." NC AI is a subsidiary of NCSoft036570, which was launched last year.
Not only Shinhan Financial Group, but major domestic financial companies are commonly showing interest in AX and DX. This is because the scope of application is broad, such as customized services through financial data analysis and risk management using AI. The assessment is that it must speed up AX and DX to avoid falling behind its competitors.
At the general shareholders' meeting, Chairman Jin Ok-dong stated, "Thanks to the support of our shareholders, we achieved record-high results last year and raised the status of our global financial group one level higher by being the first domestic financial company to surpass 1 trillion won in annual pre-tax profit overseas," and added, "We were able to achieve our goal of a 50% shareholder return rate early by faithfully implementing our corporate value enhancement plan."
Chairman Jin added, "We will complete a top-tier Shinhan by promoting productive finance, accelerating AX and DX, leading future strategic projects, and strengthening internal controls and financial consumer protection, focusing on core areas directly linked to the group's future competitiveness."