Shin Sang-hoon and Shinhan Bank Reconcile... Ending the 13-Year-Long 'Shinhan Incident'

The so-called ‘Shinhan Incident’ has effectively come to an end after about 13 years. Former Shinhan Financial Group President Shin Sang-hoon and Shinhan Bank have halted litigation and reached a sudden reconciliation.

Shinhan Bank, Jung-gu, Seoul. Photo by Jinhyung Kang aymsdream@

On the afternoon of the 17th, at a mediation hearing held at the Seoul High Court, former President Shin and Shinhan Bank agreed to "cooperate mutually for the restoration of the plaintiff’s honor and the development of Shinhan Financial Group based on a future-oriented spirit of reciprocity." Once such mediation is established, it holds the same effect as a court settlement.

Previously, former President Shin had filed a lawsuit against Shinhan Bank claiming unfair dismissal due to the Shinhan Incident.

The conflict dates back to 2009, about 13 years ago. At that time, former Chairman Ra Eung-chan accused former President Shin of embezzling management advisory fees from former Honorary Chairman Lee Hee-geon in 2009. Former President Shin countered that the issue arose during the process of raising 30 million won in cash under the direction of former Chairman Ra.

Former Chairman Ra had instructed to raise 30 million won in cash, but since there was no cash in the secretariat at the time, the amount was withdrawn from the accounts of a Korean-Japanese shareholder and former President Shin himself, and then compensated from corporate funds under the name of management advisory fees. Former President Shin received a fine due to a partial guilty verdict for embezzlement in the course of duty.

The problematic 30 million won in cash was handed over to someone at the front gate parking lot of the Namsan Freedom Center in Seoul through former Shinhan Bank President Lee Baek-soon. Since this was right after the election of former President Lee Myung-bak, rumors circulated that it was given to a regime insider as a ‘congratulatory gift for the election,’ but this was never proven in investigations or trials. The results of the prosecution’s reinvestigation, prompted by the Ministry of Justice’s Past Affairs Committee under the Moon Jae-in administration, were not significantly different.

Former President Shin’s side stated in a press release, “Former President Shin tried to uncover the truth of the Shinhan Incident and restore the honor of himself and the juniors who were sacrificed together, but it was insufficient. We are very relieved to have resolved some of the grievances through this mediation.”

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