Shinhan Financial Group shareholders on Thursday approved Jin Ok-dong for a second three-year term as chairman and CEO as it presses ahead with efforts to improve shareholder returns and expand overseas.
Jin’s reappointment had been widely expected after the group’s executive nomination committee named him the sole candidate, citing his first-term record in improving profitability, financial soundness, shareholder returns and governance.
Under Jin's leadership, Shinhan has reinforced its standing as Korea’s second-largest financial group and widened its lead in overseas operations. Last year, it became the first Korean banking group to post more than 1 trillion won ($663.9 million) in pretax earnings from global operations, pulling ahead of rivals that have struggled to scale profit abroad.
The group also improved capital ratios and reached its 50 percent shareholder return target ahead of schedule last year, underscoring a broader push to strengthen capital management and shareholder payouts.
At the annual meeting, shareholders also approved the appointment of two new outside directors, former Standard Chartered Bank Korea CEO Park Jong-bok and Kookmin University management professor Lim Seung-yeon, while reappointing five incumbent outside directors.
They also approved a reduction in capital reserves aimed at securing additional resources for shareholder returns. The 9.87 trillion won to be freed up will be transferred to retained earnings and used to support broader future payouts. Dividends funded through capital reserve reductions are exempt from the 15.4 percent dividend income tax.
In remarks to shareholders after securing a second term, Jin pledged to step up execution in businesses tied to Shinhan’s future competitiveness, including artificial intelligence and digital assets, while continuing to strengthen the group’s core franchises in wealth management and global operations.
jwc@heraldcorp.com
