Shinhan Bank
A major South Korean commercial bank and the principal banking subsidiary of Shinhan Financial Group.
Last updated August 31, 2026
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Overview
Shinhan Bank is a South Korean commercial bank headquartered in Seoul and the main banking subsidiary of Shinhan Financial Group. The bank was established under the Shinhan name in 1982 by Korean businesspeople based in Japan, beginning with three branches, 279 employees, and capital of KRW 25 billion. Although the present-day institution dates from 1982, its historical lineage is also connected to Hanseong Bank, established in 1897 and regarded as one of the earliest banks founded in Korea. That lineage entered Shinhan's corporate structure through the acquisition and later merger of Chohung Bank, Hanseong Bank's successor. Shinhan's business covers personal and household banking, corporate and institutional banking, lending, deposits, payments, foreign exchange, trade finance, wealth management, and other financial services. Its domestic franchise serves retail customers, small and medium-sized businesses, large corporations, and public-sector or institutional clients. Through the wider Shinhan Financial Group, the bank operates alongside financial businesses including securities, insurance, cards, asset management, and Jeju Bank, allowing it to participate in a broader financial-services ecosystem rather than operating as an isolated deposit-taking institution. A major turning point came in the early 2000s. Shinhan Financial Group acquired more than 80 percent of Chohung Bank in 2003 and completed the purchase of the remaining shares in 2004. Shinhan Bank and Chohung Bank were legally combined on 1 April 2006. The transaction was structured so that Chohung absorbed Shinhan and then adopted the Shinhan Bank name, preserving the older bank's institutional continuity while creating the principal bank of the expanding Shinhan group. The combination made Shinhan one of the leading banking groups in South Korea. The bank has also pursued international expansion, especially in markets with substantial Korean business and trade links. It opened a Ho Chi Minh City branch in December 1994, becoming the first Korean bank to establish a branch in Vietnam. Shinhan later developed a locally incorporated Vietnamese banking operation, merged with Shinhan Vina Bank in 2011, and acquired ANZ Vietnam Bank's retail banking business in 2017. Vietnam became an important international platform for the group, serving Korean companies, local customers, and cross-border commerce. Shinhan Bank's positioning combines the scale and balance-sheet capacity of a leading Korean bank with an emphasis on digital banking, international connectivity, and integrated group services. Like other large financial institutions, it operates in a heavily regulated environment and has faced technology and cybersecurity risks, including a temporary interruption to internet-banking servers during the cyberattacks reported in South Korea in March 2013. The bank remains an active operating institution and a central component of Shinhan Financial Group's domestic and international strategy.
History
Shinhan Bank's modern corporate history begins on 7 July 1982, when Lee Hee-gun established the bank with capital provided by Korean businessmen living in Japan. The new institution started on a modest scale, with KRW 25 billion in capital, 279 employees, and three branches. Kim Se-chang served as its first president. The bank's creation reflected the efforts of Korean business and financial interests abroad to establish a modern banking institution connected to Korea's expanding economy. The institution also inherited a much older banking lineage. Hanseong Bank was founded in 1897 and became one of the first banks established in Korea. Its successor, Chohung Bank, developed into a major Korean commercial bank. During the early 2000s, Shinhan Financial Group sought to combine the newer Shinhan franchise with Chohung's established customer base, branch network, and historical standing. In August 2003, Shinhan Financial Group acquired more than 80 percent of Chohung Bank. It increased its ownership to full control in June 2004. Before the merger, Shinhan Bank and Chohung Bank ranked among the largest Korean banks by assets. Their combination created one of the country's most important banking groups and strengthened Shinhan's ability to compete with other major institutions, including Kookmin Bank, Woori Bank, and Hana Bank. On 1 April 2006, the two banks were merged into one legal entity. The legal mechanics gave Chohung the absorbing-company role, after which it changed its name to Shinhan Bank. This structure allowed the combined bank to retain the prestige and historical continuity associated with Chohung while operating under the stronger Shinhan brand. International development became another important part of the bank's history. Shinhan opened its Ho Chi Minh City branch in December 1994, making it the first Korean bank to establish a branch in Vietnam. During 2008 and 2009, it received authorization to operate as a wholly foreign-owned bank in Vietnam. In 2011, it merged with Shinhan Vina Bank and became Shinhan Vietnam Bank, which at the time had the largest charter capital among foreign banks in the country. The Vietnamese operation subsequently broadened its retail footprint through the 2017 acquisition of ANZ Vietnam Bank's retail business. The Vietnam subsidiary continued to be integrated into the group's international and risk-management framework. Standard & Poor's assigned Shinhan Vietnam Bank a BBB long-term rating with a stable outlook in early 2020, according to the referenced account, and the subsidiary announced implementation of Basel II Pillar 2 capital-adequacy assessment processes in November of that year. Shinhan Bank has also had to manage the operational risks associated with large-scale digital banking. In March 2013, its internet-banking servers were temporarily blocked during a broader wave of cyberattacks in South Korea. Government authorities asserted a North Korean connection, while North Korea denied responsibility. The incident highlighted the importance of resilience and cybersecurity for the bank's expanding digital operations. Today, Shinhan Bank functions as Shinhan Financial Group's principal banking arm. Its activities span retail, corporate, institutional, foreign-exchange, trade-finance, lending, payments, wealth-management, and digital services. The bank's historical identity therefore combines a 1982 founding under the Shinhan name with a broader institutional heritage reaching back to Hanseong Bank in 1897.
- 2020
Basel II Pillar 2 implementation in Vietnam
[1]Shinhan Vietnam Bank announces implementation of Basel II Pillar 2 capital-adequacy assessment processes.
- 2017
ANZ Vietnam retail acquisition
[1]Shinhan Bank acquires the retail banking segment of ANZ Vietnam Bank.
- 2013
Internet-banking disruption during cyberattacks
[1]Shinhan Bank's internet-banking servers are temporarily blocked during cyberattacks reported across South Korea.
- 2011
Shinhan Vina Bank merger
[1]The Vietnamese operation merges with Shinhan Vina Bank to form Shinhan Vietnam Bank.
- 2006
Shinhan and Chohung banks merge
[1]The two banks combine on 1 April. Chohung absorbs Shinhan legally and then adopts the Shinhan Bank name.
- 2004
Full ownership of Chohung Bank is completed
[1]Shinhan Financial Group raises its stake in Chohung Bank to 100 percent.
- 2003
Shinhan Financial Group takes control of Chohung Bank
[1]Shinhan Financial Group acquires more than 80 percent of Chohung Bank, the successor to Hanseong Bank.
- 1994
First Shinhan branch opens in Vietnam
[1]Shinhan opens a branch in Ho Chi Minh City, becoming the first Korean bank to establish a branch in Vietnam.
- 1982
Shinhan Bank is founded
[1]Lee Hee-gun establishes Shinhan Bank on 7 July with KRW 25 billion in capital, 279 employees, and three branches.
- 1897
Hanseong Bank is established
[1]Hanseong Bank is founded and later becomes the historical predecessor of Chohung Bank, whose legacy is incorporated into modern Shinhan Bank.
Products and positioning
A leading full-service commercial bank in South Korea, positioned around financial stability, broad domestic coverage, digital capabilities, and international support for Korean-linked business.
Retail banking
Personal banking
Shinhan Bank's personal-banking franchise serves individual customers through deposit accounts, savings products, payment services, personal credit, consumer lending, and digital channels. The offering is designed for routine financial needs such as payments, cash management, borrowing, and access to online and mobile banking.
Corporate banking
Corporate and commercial banking
Corporate and commercial banking provides lending, deposits, cash management, payments, foreign exchange, and advisory-related financial services to companies ranging from small and medium-sized enterprises to large Korean corporations and institutions.
Transaction banking
Trade finance
Trade-finance services support importers, exporters, and internationally active companies through banking instruments and cross-border transaction capabilities. This area is particularly relevant to Shinhan's Korean corporate customers and its network in overseas markets.
Markets and transaction services
Foreign exchange
The bank offers foreign-exchange services for retail, corporate, and institutional customers. These services support international payments, trade activity, currency conversion, and the financial needs of Korean businesses operating abroad.
Wealth management
Wealth management
Shinhan's wealth-management activities provide financial-planning and investment-related services to personal and affluent customers. The offering sits within the broader Shinhan Financial Group ecosystem and complements the bank's deposit, lending, and investment products.
Digital banking
Digital and internet banking
Digital banking enables customers to manage accounts, payments, transfers, and other banking functions through electronic channels. The bank's digital infrastructure is a core part of its service model, while the 2013 internet-banking disruption demonstrated the importance of operational resilience and cybersecurity.
Brand decisions
2020
Implementation of Basel II Pillar 2 processes in VietnamStrategyBackground
Shinhan Vietnam Bank continued strengthening its risk-management and capital-assessment framework as part of its regulated banking operations.
Action taken
The subsidiary announced implementation of Basel II Pillar 2 processes for assessing capital adequacy.
Aftermath
The move aligned the Vietnamese operation with a more developed regulatory and internal capital-assessment framework.
2017
Acquisition of ANZ Vietnam retail banking operationsM&ABackground
Shinhan sought to expand its Vietnamese retail presence after building a local banking platform and merging with Shinhan Vina Bank.
Action taken
Shinhan Bank acquired the retail segment of ANZ Vietnam Bank.
Aftermath
The acquisition broadened Shinhan's customer and distribution footprint in Vietnam.
2006
Merger of Shinhan Bank and Chohung BankM&ABackground
The two banks were among South Korea's major commercial banking institutions, and their combination was intended to create a stronger national banking group.
Action taken
On 1 April 2006, Chohung Bank absorbed Shinhan Bank as the legal surviving entity and then changed its name to Shinhan Bank.
Aftermath
The merged institution became the principal bank of Shinhan Financial Group while retaining a historical connection to the 1897 Hanseong Bank lineage.
2003
Acquisition of Chohung BankM&ABackground
Shinhan Financial Group sought to combine Shinhan Bank's newer franchise with Chohung Bank's established scale, customer base, and historical banking lineage.
Action taken
The group acquired more than 80 percent of Chohung Bank in 2003 and later completed the purchase of all remaining shares.
Aftermath
The transaction prepared the formation of a larger banking group and ultimately led to the 2006 merger of Shinhan and Chohung banks.
Recent events
KT and Shinhan Bank partner on AI and platform businesses[3]
Reported:
KT said it partnered with Shinhan Bank to collaborate on new businesses, including artificial intelligence and platform services. The partners plan 23 projects across areas including AI, NFTs, the metaverse and platforms.
Shinhan Bank acquires minority stake in Douzone Bizon[4]
Reported:
Shinhan Bank acquired a 1.97 percent stake in Douzone Bizon for 72.3 billion won as a strategic investment linked to development of a corporate banking platform.
Shinhan Bank and Microsoft Korea sign strategic partnership[5]
Reported:
Shinhan Bank and Microsoft Korea signed a strategic partnership for Shinhan’s Expace, a planned research and development platform for work with fintech companies, startups and other innovative firms.
Shinhan launches Shinhan SOL in India[6]
Reported:
Shinhan Bank said it launched the Shinhan SOL mobile banking application in India, offering services including inter-bank electronic funds transfers and bill payments.
Sources6 sources
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