Lee Sun-ho's leadership at Shinhan Investment Corp. begins with restoring trust rather than focusing solely on growth. He has taken on the role of rebuilding the organization, which was shaken by a major financial incident and internal control controversies. Since his appointment, he has emphasized that 'internal control is not just an obligation but a part of the organizational culture.' At the same time, he is pursuing new growth strategies, including the issuance of notes, digital assets, and AI-based asset management. His leadership is characterized by a focus on organizational stability and trust recovery while not neglecting digital transformation.
Leadership Focused on Restoring Trust After Financial Crisis
Lee Sun-ho took the helm during a crisis. Shinhan Investment Corp. faced a loss of approximately 130 billion won during the management of an ETF LP in 2024, which was compounded by issues of internal record manipulation, shaking the entire organization’s trust. The market viewed this not merely as a management failure but as a fundamental issue with the internal control system.
Lee made his direction clear immediately after taking office. He stated that internal control would be redesigned as a fundamental structure of organizational operations rather than merely a post-event inspection function. In practice, Shinhan Investment Corp. has reorganized the roles and responsibilities across its front, middle, and back offices and elevated the risk management department to a group level. A new customer risk management department was established, and operational risk management functions were strengthened.
He repeatedly emphasized, "Internal control should not be an obligation imposed by someone but should become a habit." This is not just a slogan; following the top-down system establishment, he now demands a bottom-up cultural change within the organization. The implementation of a whistleblower system and a mandatory leave system, along with the introduction of an AI-based anomaly detection system, aligns with this approach.
The core of Lee's leadership is ultimately 'finance that prevents accidents.' He aims to establish the trust structure of the organization before focusing on short-term performance. This approach, while not flashy, is considered the most necessary leadership in the current financial sector.
Pursuing Growth Strategies Amid Stability
However, viewing Lee Sun-ho's leadership as merely stability-focused is insufficient. He is simultaneously pursuing growth strategies, with the issuance of notes being a prime example. Shinhan Investment Corp. secured approval for note issuance at the end of 2025, establishing a new funding base.
This is not just a new business; it is an enterprise-wide infrastructure connecting corporate finance, management, and retail. Lee aims to strengthen the competitiveness of investment banking centered on productive finance and venture capital based on this foundation. In fact, he established a comprehensive investment banking department to provide financial solutions to emerging industries such as AI, semiconductors, healthcare, and green energy.
He does not view note issuance merely as a funding tool. His statement, "We will create a virtuous cycle that supplies growth capital to companies and shares the fruits of growth with investors," reflects this direction.
Performance is also showing signs of recovery. Shinhan Investment Corp.'s net profit reached 381.6 billion won, a 113% increase from the previous year, and operating profit also improved significantly. The recovery in performance was driven by increases in commission fees and profits related to financial products. Notably, the IRP yield ranked among the highest in the industry, enhancing wealth management competitiveness.
Ultimately, Lee Sun-ho's strategy is not merely defensive. It is more about redesigning the growth structure based on internal control.
Transforming Asset Management with AI and Life Care
Another focus for Lee Sun-ho is digital and life care asset management. He does not see asset management merely as the sale of financial products but aims to expand it into a service that designs the entire life of the customer.
In fact, he emphasized in a recent essay that "asset management is evolving beyond simple investment management into life care." He believes that integrated solutions encompassing taxes, real estate, inheritance, and retirement planning will be key in the future.
To this end, Shinhan Investment Corp. operates the 'Shinhan Premier Pathfinder' organization. This structure allows tax, real estate, legal, and foreign exchange experts to conduct a comprehensive diagnosis of customer assets. This strategy connects not just wealth management competition but the entirety of the customer's life within financial services.
AI is also utilized in the same direction. Shinhan Investment Corp. is developing services that support customers' investment decisions through AI-based PB services and enhanced mobile trading systems. This is an attempt to provide 'understandable investments' and 'managed assets' rather than a transaction-centered platform.
However, challenges remain. In the past five years, the number of IT system failures has been among the highest in the industry, and the ETF loss incident revealed limitations in internal systems. Ultimately, digital innovation must ensure stability alongside speed.
Lee Sun-ho's leadership currently stands at a turning point. He emphasizes trust recovery and system stability over aggressive expansion. However, he also aims not to overlook future growth foundations such as note issuance, AI, and digital assets. Ultimately, his entrepreneurial spirit in finance connects to one question: Can finance that has regained trust grow again?
* This article has been translated by AI.
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