Shinhan Capital Transfers Trillion-Won Assets to Card Business

Automobile-Related Projects Worth 1 Trillion Won

[Asia Economy Reporter Kim Hyo-jin] Shinhan Capital's automobile and retail financial assets, worth about 1 trillion won, will be transferred to Shinhan Card. Shinhan Financial Group plans to restructure its subsidiary portfolio to develop expertise in retail and investment banking (IB) sectors within the card and capital businesses, respectively.

Shinhan Card and Shinhan Capital, subsidiaries of Shinhan Financial Group, held extraordinary board meetings on the 24th to discuss the agenda of transferring Shinhan Capital's automobile and retail financial assets worth about 1 trillion won to Shinhan Card.

Amid ongoing profitability deterioration due to economic recession and increased volatility in domestic and international financial markets, Shinhan Financial decided to adjust the credit finance portfolios of the two companies to proactively respond to potential crises and establish a foundation for the group's sustainable growth.

The two companies plan to finalize the financial assets subject to transfer by the end of August and complete the practical procedures related to the contract.

With this decision, Shinhan Card will gain an opportunity to create new revenue sources by adding automobile finance assets and retail loan assets worth about 1 trillion won. A Shinhan Card official said, "Due to the decline in profitability of the credit card business, we are pursuing business diversification, and through this retail asset acquisition, we plan to create differentiated product sales and customer value."

Shinhan Capital will also be able to secure growth potential in the corporate investment finance sector by utilizing the investment funds secured through asset transfer. A Shinhan Capital official explained, "By securing liquidity from asset sales, we have prepared resources to respond to the high growth potential and volatility of the corporate finance market."

Going forward, Shinhan Card will focus on the retail sector within the group's credit finance business, while Shinhan Capital will specialize in investment, IB, and corporate finance sectors as subsidiaries, aiming to secure differentiated growth momentum and strengthen qualitative competitiveness.

A Shinhan Financial Group official said, "This asset transfer between the two companies is a strategic decision to expand market leadership of the credit finance portfolio within the group," adding, "We expect the group's corporate value and non-bank business portfolio to be further strengthened."

This content was produced with the assistance of AI translation services.