Chairmen Kim Jeong-tae and Cho Yong-byeong to Sign Agreement on 25th
at Lotte Hotel, Jung-gu, Seoul
First Agreement Between Holding Companies
At the business agreement ceremony held on the 25th at Lotte Hotel in Jung-gu, Seoul, to strengthen global competitiveness between Hana Financial Group and Shinhan Financial Group, (from left) Ji Sung-kyu, CEO of Hana Bank, Cho Yong-byeong, Chairman of Shinhan Financial Group, Kim Jung-tae, Chairman of Hana Financial Group, and Jin Ok-dong, CEO of Shinhan Bank, are taking a commemorative photo. Photo by Hana Financial Group
[Asia Economy Reporter Kim Min-young] Shinhan Financial Group and Hana Financial Group have joined hands.
The two groups announced on the 25th that they signed a Memorandum of Understanding (MOU) at Lotte Hotel in Jung-gu, Seoul, to strengthen global competitiveness.
Although the two groups are fierce rivals competing in the domestic financial market, they decided to cooperate with each other in overseas business sectors. They judged that joining forces is better than pursuing independent paths to stand shoulder to shoulder with global financial companies.
The market evaluates this as the first innovative case signed between leading domestic financial groups, expected to present a new paradigm for the future of the financial industry.
So far, domestic financial companies have faced issues such as regional concentration when expanding overseas and stagnation in localizing and scaling up overseas networks. The two groups shared the recognition that avoiding excessive competition among domestic financial companies and forming a mutually complementary and cooperative relationship is necessary for qualitative growth and innovation.
Going forward, the two groups will engage in various exchanges and cooperation in the global sector. They plan to jointly explore and promote business opportunities across global operations, respond together to country-specific regulations and issues, enter new overseas markets jointly, make overseas joint investments, and establish overseas networks.
At the signing ceremony, Kim Jung-tae, Chairman of Hana Financial Group, said, “This will be a new financial paradigm that overcomes the simple goodwill competition between the two groups and establishes a global cooperative relationship,” adding, “We expect it to be a cornerstone for the two groups to compete confidently with world-class financial companies.”
Shin Yong-byeong, Chairman of Shinhan Financial Group, also emphasized, “We expect this to be a good opportunity for the two groups to strengthen global competitiveness and become a new breakthrough in the uncertain global market.”
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