Shinhan Financial Group is launching a financial holding company in Indonesia to enhance its local operations.
On October 13, Shinhan Financial Group announced that Shinhan Indonesia Bank has transitioned into a business holding company, marking the establishment of the 'Shinhan Indonesia Financial Group,' the first local financial holding company by a domestic financial group.
The Shinhan Indonesia Financial Group began restructuring its governance in December 2024, in accordance with local regulatory guidelines. Following approval from local financial authorities in September of last year, the company completed the transition on September 16, after executing subsequent procedures, including share transfers.
Shinhan Indonesia Bank acquired stakes in local subsidiaries Shinhan Indo Finance and Shinhan Investment Securities Indonesia, previously held by Shinhan Card and Shinhan Investment Securities, respectively, resulting in ownership of 50% plus one share in each.
Over the past decade, Shinhan Financial has expanded its operations in Indonesia, growing into a comprehensive financial group with approximately 900 employees. This governance restructuring aims to enhance collaboration among subsidiaries and streamline decision-making processes.
As part of its diversification strategy following the establishment of the financial holding company, Shinhan Financial signed a memorandum of understanding with Sinarmas Group, Indonesia's fourth-largest conglomerate, on October 12.
Shinhan Financial Chairman Jin Ok-dong stated, "With the launch of the financial holding company, we have established a foundation to operate our local business as a cohesive entity. This MOU represents a new initiative for expanding our local business. We aim to provide differentiated financial value to local customers in collaboration with Sinarmas Group and contribute to the economic development of both countries."
* This article has been translated by AI.
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