Shinhan Bank dares foreign expansion
In a none too friendly global banking environment, Shinhan Bank aims for 'glocalization'.
Shinhan Bank CEO Suh Jin Won said his plan is to generate at least 10% of the bank’s revenue from overseas by 2015.
To achieve this, the bank plans to add at least seven overseas branches this year to its more than 60 branches in 14 countries around the world.
“We are on course to achieve the goal,” he said. “Our foreign business units combined to generate more than 5% of our revenue last year, and since business operations in our three key markets of Japan, China and Vietnam have been strong so far, I have high hopes for this year.”
He said countries Shinhan Bank was already in will provide the foundation that will allow it to spread further across the world markets. The idea is to strengthen Shinhan’s positions in these core markets and use that strength to expand, rather than going here and there and spreading themselves too thin.
“Our approach to international markets could be summarized as ‘glocalization.’ We will continue to be involved in business areas where we are the best, but also put in more efforts to tailor these services and make them attractive to local customers in each market.”
In 2011, Shinhan Bank became the first Korean bank to achieve an annual profit above 2 trillion won (US$1.7 billion), earning US$2.1 billion.