Financial group consolidates banking, financing, securities operations to strengthen Southeast Asian foothold
Shinhan Financial Group has become the first Korean financial group to establish a holding company in Indonesia, consolidating its banking, financing and securities businesses as it seeks to strengthen its foothold in Southeast Asia's largest economy.
The group launched Shinhan Financial Group Indonesia by converting Shinhan Bank Indonesia into an operating holding company, it said Tuesday. The bank acquired controlling stakes of 50 percent plus one share each in Shinhan Indo Finance and Shinhan Sekuritas Indonesia from Shinhan Card and Shinhan Securities, respectively.
The new structure allows Shinhan to manage its Indonesian financial businesses under one roof while maintaining banking operations, aiming to accelerate decision-making, deepen cooperation and improve operational efficiency.
The restructuring also brings Shinhan into compliance with Indonesian regulations introduced in December 2024 requiring qualifying financial conglomerates to establish local holding companies responsible for governance, risk management and capital adequacy.
Shinhan began the restructuring process in December 2024, secured regulatory approval in September 2025 and completed the transition on Sept. 16 this year.
The move comes more than a decade after Shinhan entered Indonesia in 2015, when its banking unit acquired Bank Metro Express and its card unit launched Shinhan Indo Finance. Shinhan Bank Indonesia officially launched the following year. The group's Indonesian operations now employ about 900 people.
Other Korean financial groups are pursuing similar restructuring efforts. KB Financial Group received approval for its holding company plan in August and is working to convert an existing Indonesian IT subsidiary into a holding company overseeing its local financial businesses. Hanwha Life has established a preparatory entity and submitted a holding company plan following its acquisition of Bank Nobu.
Shinhan Chairman Jin Ok-dong attended a launch ceremony in Indonesian capital Jakarta on Monday alongside Indonesian financial officials.
The group also signed a memorandum of understanding with Indonesian conglomerate Sinar Mas to expand cooperation in corporate and supply chain financing, combining Sinar Mas' industrial network with Shinhan's financial services.
"The launch of the financial holding company gives us a foundation for operating our Indonesian businesses under a single structure, and this agreement marks a new step toward expanding our local business," Jin said. "We will work with Sinar Mas to deliver differentiated financial value to local customers and contribute to the economic development of both countries."
jwc@heraldcorp.com