Shinhan Financial Group said on Jan. 29 it decided to build the entire value chain of its capital markets business in Jeonbuk Innovation City to develop it into an asset management and capital markets hub.

Shinhan Financial plans to concentrate group-wide capabilities to build a comprehensive hub in Jeonbuk Innovation City that carries out asset management business broadly. It plans to ensure that all value chain functions related to capital markets, including management, custody, risk and back-office administration, operate in practice rather than setting up a simple local office.

To that end, it plans to develop the site into a group capital markets base that will employ more than 300 people, including bank staff. It aims to ease the concentration of financial functions in the Seoul metropolitan area while pursuing local economic revitalisation and the creation of quality jobs at the same time.

In particular, Shinhan Fund Partners has had about 30 specialists stationed in Jeonju since early this year to perform core tasks. Including staff from major group subsidiaries such as banking, securities and asset management, about 130 capital markets specialists are currently stationed in Jeonju, operating a practical system.

Shinhan Asset Management, which manages 153 trillion won in assets, plans to open an office in Jeonju as the first domestic comprehensive asset management firm to do so. It plans to build the local financial ecosystem, expand its financial network with the National Pension Service's fund management headquarters and hire local talent to pursue shared growth with the community.

Shinhan Bank already operates a National Pension Service custody management office in Jeonju. It plans to establish a customer service centre in Jeonju this year that had been run with a Seoul-area focus. Shinhan Investment Corp recently completed an integration with a nearby branch and is operating the Jeonbuk Financial Center in Jeonju, the largest branch in the Jeonbuk region.

Through this, key capital markets tasks such as product development, management support, custody and post-management are currently being carried out in Jeonju, and regional-based comprehensive asset management and capital markets functions are set to come into full operation.