Board roundtable draws 50 institutional investors at home and abroad

Corporate value, shareholder returns, evaluation framework on agenda

The board of Shinhan Financial Group hosts a roundtable meeting with domestic and foreign institutional investors at the Grand Hyatt Seoul on Thursday. From left: Board Member Choi Young-kwon, Shinhan Financial Group Chairman Jin Ok-dong and Board Chairman Kwak Su-geun engage with investors at the event. [Shinhan Financial Group]
The board of Shinhan Financial Group hosts a roundtable meeting with domestic and foreign institutional investors at the Grand Hyatt Seoul on Thursday. From left: Board Member Choi Young-kwon, Shinhan Financial Group Chairman Jin Ok-dong and Board Chairman Kwak Su-geun engage with investors at the event. [Shinhan Financial Group]

Shinhan Financial Group has overhauled its principles for appointing independent directors and tightened its internal control framework as part of a broader push to strengthen board-centered corporate governance.

The board of Shinhan Financial Group said Saturday it had hosted a board roundtable at the Grand Hyatt Seoul on Thursday, inviting about 50 domestic and foreign institutional investors.

The annual event brings together major investors to discuss the group's medium- and long-term strategy and governance issues. This year's gathering was attended by Board Chairman Kwak Su-geun, six independent directors and key executives including Group Chairman Jin Ok-dong.

Institutional investors raised questions on strategies to enhance corporate value, shareholder return plans, and the evaluation and compensation framework for the board and senior management.

Shinhan Financial said it had revised its independent director appointment principles this year, updating the criteria to prioritize candidates with substantive experience in the financial industry. The group plans to use a Board Skills Matrix to screen the candidate pool and raise the overall expertise of the board.

The group also shared measures to strengthen internal controls. Shinhan Financial said it built a group-wide AI-based internal control platform in June to help business units fulfill their oversight obligations. It also plans to improve the effectiveness of its control framework by directing the group's internal control committee to identify and address shortcomings.

"Sound governance and responsible management are at the heart of our corporate value enhancement plan," Board Chairman Kwak said. "Shinhan Financial Group's board will strive to become a trusted company that grows alongside its investors through transparent disclosure and open communication."

Group Chairman Jin said the company had updated its corporate value enhancement plan in April through the release of its Value-up 2.0 initiative, built on active engagement with a broad range of stakeholders. "Shinhan Financial will treat the diverse opinions and advice of our investors as a valuable foundation as we do our utmost to translate them into sustainable growth," he added.

Meanwhile, Shinhan Financial posted a net profit for the period of 3.44 trillion won ($2.49 billion) in the first half of this year, the highest first-half earnings in the group's history. Non-banking net profit also rose 38.3 percent year-on-year to 1.33 trillion won, driven by growth in the securities and asset management segments.


rim@heraldcorp.com