Shinhan Bank and KT Form Tech-Finance Alliance with 437.5 Billion KRW Equity Swap

Technology-Finance Convergence 'Joint Platform' New Business Promotion
SI Fund Formation and Joint R&D Operation... Accelerating DT
ESG Collaboration Through Joint Startup Development

On the 17th, at the Shinhan Bank headquarters in Jung-gu, Seoul, Jin Ok-dong, President of Shinhan Bank (left), and Park Jong-wook, President of KT's Management Planning Division, are posing for a commemorative photo at the signing ceremony of the strategic partnership between Shinhan Bank and KT.

[Asia Economy Reporter Kwangho Lee] Shinhan Bank announced on the 17th that it has signed a strategic partnership with KT to leap faster as a digital company, overcoming the limitations of finance and technology.

Shinhan Bank acquired a 5.46% stake in KT (approximately 437.5 billion KRW) to ensure execution capability and momentum in business cooperation and to maintain a long-term collaborative relationship. KT also acquired a 2.08% stake in Shinhan Financial Group (approximately 437.5 billion KRW).

Shinhan Bank will promote cooperation with KT in a total of 4 areas and 23 projects.

First, they will develop solutions that combine Shinhan Bank’s financial expertise and KT’s technological capabilities to build various joint platforms that help customers in their daily lives. The joint platform businesses to be established in new areas include convergence services based on the metaverse, real estate platforms, and certified electronic documents.

Additionally, they will jointly promote the certified electronic document business utilizing KT’s blockchain technology. This includes not only the storage of electronic documents composed of unstructured data such as various types of electronic contracts, electronic certificates, and mobile electronic notifications but also discovering specific business models linked to the certified electronic document intermediary business. In particular, the two companies plan to expand their alliance network by leveraging digital capabilities in various industrial fields such as non-fungible tokens (NFTs) and AI in the future.

Furthermore, the two companies will establish a joint strategic investment (SI) fund and promote investment and consulting collaboration with domestic and international ventures with technological capabilities. They also plan to create a joint research and development (R&D) organization to carry out technology-based financial convergence projects and discover additional cooperation tasks. Ultimately, through this, the two companies aim to jointly promote global platform businesses, secure global competitiveness, and drive digital transformation (DT) for becoming digital companies.

Shinhan Bank and KT plan to create specialized services based on their strengths and excellent customer experience (CX) so that small business owners and the MZ generation can enjoy the combined benefits of both companies.

In addition, the two companies will collaborate on ESG (environment, social, governance) business by developing ESG data management solutions that link telecommunications technology and financial benefits, developing various businesses, and jointly nurturing startup companies to create a healthy society. To swiftly carry out joint projects, they will organize a joint task force (TF) composed of Shinhan Bank’s financial infrastructure experts and KT’s technology specialists, accelerating future digital financial convergence businesses that combine technology and finance based on this.

A Shinhan Bank official said, "This strategic partnership will be a great driving force to accelerate Shinhan Bank’s digital company that connects customers and the future through new businesses and solutions beyond industries and DT." He added, "Through the fusion of technology and finance by both companies, we will launch differentiated digital convergence businesses, products, and services so that our society and customers can enjoy new benefits."

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