Shinhan Financial Group Chairman Jin Ok-dong (second from right) attends a session at the investor relations event held in Hong Kong on Nov 13. (Shinhan Financial Group)

Shinhan Financial Group is intensifying efforts to enhance its corporate value, with Chairman Jin Ok-dong leading initiatives both domestically and internationally.

In November, Jin attended a joint investor relations event in Hong Kong, organized by South Korea's Financial Supervisory Service, following a similar event in New York in May. He presented Shinhan's corporate value enhancement plan, outlined strategies for strengthening South Korea's capital market, and discussed global expansion.

In July, Shinhan introduced a comprehensive corporate value plan, targeting a 10 percent return on equity, a 50 percent shareholder return, and reducing shares by 50 million by 2027. This includes stock buybacks to reduce listed shares to 500 million by year-end and 450 million by 2027.

The group also raised its Common Equity Tier 1 target to 13 percent to strengthen its loss-absorption capacity, and aims for an 11.5 percent return on tangible common equity and 10 percent return on equity. It will use return on group capital to assess profitability across subsidiaries, tying it to management performance and compensation.

Shinhan has focused on boosting shareholder returns, introducing quarterly dividends in 2021 and equal dividends in 2023 -- both firsts for a Korean financial group. The company has also conducted seven consecutive quarters of share buybacks and cancellations.

The group has also enhanced communications with investors, holding over 450 meetings annually and conducting regular shareholder meetings and earnings calls. In September, the board held a roundtable with major shareholders, attended by Jin and Board Chair Yoon Jae-won.

In October, Shinhan hosted a "Value Up Conference," sharing its value enhancement strategies with listed corporate clients. Jin emphasized collaboration between the group and its clients to boost corporate value and promote capital market growth.

Since taking office in March 2023, Jin has prioritized global investor relations, conducting tours in Japan and Europe to explore collaboration opportunities in finance, digital innovation and environmental, social and governance initiatives. This led to Shinhan Bank’s acquisition of a majority stake in Indian student loan provider Credila for $18 million in April, marking the first such deal by a Korean commercial bank.

By Choi Ji-won (jwc@heraldcorp.com)