SBJ DNX said on Thursday it held a signing ceremony for an equity investment agreement with LG CNS to cooperate on Japan banking solutions on Dec. 10 at Shinhan Bank’s headquarters in central Seoul.

SBJ DNX is a subsidiary established in April 2020 by SBJ Bank, Shinhan Bank’s local unit in Japan, to pursue new digital and ICT businesses in the Japanese financial market.

Seven months after its establishment, it signed a contract to provide a cloud banking system to UI Bank under Japan’s Kiraboshi Financial Group.

The sale of a 10 percent stake to LG CNS follows a global financial digital and IT business partnership signed by Shinhan Bank and LG CNS in December 2023.

Under that agreement, the two sides agreed to cooperate on key tasks including expanding financial digital and IT solutions in global markets such as Japan and Vietnam, researching and developing market-specific financial solutions and new businesses, and building a model for shared global growth.

The investment is expected to accelerate the expansion of banking solutions for Japanese financial companies by combining LG CNS’s capabilities in financial system digital transformation.

An SBJ DNX official said the investment would combine SBJ DNX’s financial expertise with LG CNS’s IT technology to create meaningful synergies in the Japanese market and serve as a turning point for SBJ DNX to grow into a global digital company.