Shinhan Launches Indonesia Holding Company

Jin Ok-dong, Chairman of Shinhan Financial Group (right), takes a commemorative photo after signing a memorandum of understanding with Fuganto Widjaja, Chairman of the Financial and Energy Division of Sinar Mas Group, in Jakarta, Indonesia on Oct. 12. (Provided by Shinhan Financial Group)  Shinhan Financial Group announced on Oct. 13 that Shinhan Bank Indonesia has converted into a holding company, making a fresh start as 'Shinhan Indonesia Financial Group'. This conversion into a holding company is the result of proactively responding to regulatory changes by local financial authorities. Shinhan Indonesia Financial Group began restructuring its corporate governance as Indonesian financial authorities made the establishment of financial holding companies mandatory in Dec. 2024. Subsequently, the group obtained approval from the authorities in September last year and has been carrying out the share transfer process. To establish the holding company system, Shinhan Bank Indonesia strengthened its control by reorganizing the shares of its affiliates. The bank partially acquired shares in Shinhan Indo Finance and Shinhan Securities Indonesia, the local subsidiaries previously held by Shinhan Card and Shinhan Securities, respectively. Through this, the bank secured '50%+1 share' in each of the two corporations, incorporating them as subsidiaries. Close external cooperation also took place during this process. Shinhan Financial Group collaborated with the Embassy of the Republic of Korea in the Republic of Indonesia and the Korea-ASEAN Financial Cooperation Center to finalize the holding company conversion process on Sep. 16. Jin Ok-dong, Chairman of Shinhan Financial Group, personally attended the launch ceremony held in Jakarta on Oct. 12, setting a new milestone for the local business. Shinhan Financial Group also joined hands with Sinar Mas Group, the fourth-largest conglomerate in Indonesia, to target the local market. The two parties signed a memorandum of understanding to cooperate in areas such as corporate finance and supply chain finance. Sinar Mas Group is a large conglomerate encompassing the financial and energy sectors, and Shinhan Financial Group plans to provide differentiated financial services to local customers through this collaboration. Chairman Jin Ok-dong stated that through the launch of the financial holding company, they have established a foundation to operate the local business in Indonesia under a single system, adding that they will provide value to local customers through collaboration with Sinar Mas Group while also contributing to the economic development of both South Korea and Indonesia.