Shinhan Investment Corp. noted on the 20th that it will implement organizational restructuring aimed at fundamentally reforming its organizational culture, systems, and processes to restore trust among clients and the market, effective Jan. 1, 2025.
Firstly, Shinhan Investment Corp. will introduce a three-pronged management system comprising asset management, Corporate & Investment Banking (CIB), and management control. This is to pursue rapid and consistent recovery from the crisis and secure a sustainable growth system early on.
Additionally, new divisions for overall asset management, CIB, and management control will be established. The heads of the asset management and CIB divisions will be appointed with the title of president and are expected to take joint responsibility for strengthening internal control and driving business growth.
The asset management division plans to enhance customer convenience from a customer-centric perspective and lead sustainable growth based on strengthened internal controls by providing differentiated customer experiences that clients can feel and recognize.
The CIB division, which will lead the integrated growth and stabilization of corporate finance and real estate finance, is planning and promoting systematic collaboration for the growth of traditional investment banking (IB) businesses and the normalization of alternative asset IB businesses.
The management control division will oversee the strategic planning group and the management support group, with the president concurrently holding the position to enhance the driving force for overcoming the crisis and normalization. Improvements will be carried out consistently through organic connections and collaborations among various areas, including strategy, finance, human resources, processes, systems, and evaluation and compensation.
Shinhan Investment Corp. also established a new organization and strengthened functions related to internal control and risk management. The organization responsible for financial management has been elevated to headquarters, allowing for integrated management of corporate accounting. A new headquarters for process innovation has been created to improve work processes and enhance internal controls. The establishment of a compliance support team is intended to strengthen frontline internal controls, and a new operational risk management team has been created to bolster enterprise-wide operational risk management.
To increase operational efficiency, Shinhan Investment Corp. has also restructured its business lines. Two headquarters have been merged into one to enhance the efficiency of the real estate finance business, reducing affiliated departments from seven to five. Additionally, the wholesale group has been integrated into the Sales and Trading (S&T) group. Furthermore, organizations that are not operating efficiently or have low expectations for future profitability have been closed or merged with similar organizations.
A Shinhan Investment Corp. official said, "The goal is to quickly achieve crisis recovery and normalization," adding, "Through this organizational restructuring, we aim to grow together with our clients and create a Shinhan Investment Corp. that earns trust."