Shinhan Bank CEO Han promises innovation and support in 2023

New Shinhan Bank CEO Han Yong-gu speaks at a press conference held in central Seoul on Friday. [NEWS1]

Shinhan Bank CEO Han Yong-gu said he will manage economic crisis next year using data analysis and by offering timely support measures to customers.

During his inauguration ceremony Friday, Han said “our economy is expected to face a state of crisis beyond an economic slowdown in 2023.” To overcome the difficulties, the bank should manage its soundness based on “data analysis” and with timely support measures to the financially vulnerable customers, he added.

Han was recommend as the new Shinhan Bank CEO to replace Jin Ok-dong by a Shinhan Financial Group board committee on Dec. 20. The committee noted his relationship-building abilities and a strong drive in his past roles as a sales manager.

The two-year term starts on Jan. 1.

Han said being an “invisible bank” will be the ultimate future of Shinhan Bank.

An invisible banking model is where banking services are behind the scenes and embedded in everyday activities without customers realizing the presence of a bank.

Shinhan Bank “will realize finance that permeates into daily lives and expands connections with institutions,” Han added.

Han said he is concerned about the financial soundness of the self-employed in particular.

“I believe things will grow more difficult and the financial soundness will emerge as a bigger issue next year,” Han told reporters at a press conference held on the same day following the ceremony at Shinhan Bank's main office in central Seoul. Heading for a “soft landing through active and preemptive measures to the socially and financially vulnerable people will be our role. I’ll put a focus on that.”

Shinhan, along with KB Kookmin, Hana, Woori and NongHyup, is considering on temporarily exempting an early redemption charge for vulnerable borrowers as part of the effort to alleviate their interest costs.

Han also noted a voluntary retirement program is “inevitable” in order to hire younger employees and to take part in the program of hiring socially vulnerable people.

A total of 250 people left Shinhan Bank through the voluntary retirement program in January. Shinhan Bank plans to offer the program again in January.

Commercial banks, also including KB Kookmin, Hana and Woori, have been offering voluntary retirement programs as digitization reduces the need for staff at branches.

Shinhan Bank shut about 150 branches over the past two years.

Other key agenda items on which Han promised to focus include customer service, growth, strengthening of the ESG and communications.

BY JIN MIN-JI [jin.minji@joongang.co.kr]