Shinhan Financial Group said on Thursday that Chairman Jin Ok-dong (진옥동) recently sent a letter to shareholders, presenting a vision to build Shinhan’s own “sustainable narrative” based on its founding spirit.

In the opening of the letter, Jin cited Ortega’s “The Revolt of the Masses” to underscore his resolve not to rest on past achievements. He said he held in-depth discussions with executives on the direction of innovation at the management strategy meeting at the start of the year.

On last year’s performance, he said the group moved to accelerate an AI transition by holding a generative AI competition for executives and establishing a dedicated AX organization. He said Shinhan plans to use this as a foundation to transform into an “AI Native Company.”

He also said Shinhan achieved early its target shareholder return ratio of 50 percent, initially set for 2027, and posted global pre-tax profit exceeding 1 trillion won.

On internal controls, he stressed that Shinhan expanded its accountability structure, introduced at the holding company and the bank, to group affiliates including securities, life and asset management. He also said the group strengthened its management system by reflecting internal control assessments in evaluation and compensation systems.

Jin mentioned revisions to the Commercial Act as a backdrop to the recent growth of South Korea’s stock market, as he reviewed the process of building market trust. He said South Korean companies are being re-evaluated as strategic supply partners amid U.S.-China competition and an environment of protectionism.

He said this trend could continue for the next 5 to 10 years and called it an opportunity to expand corporate investment and strengthen technological competitiveness.

Shinhan Financial plans to use this as an opportunity to raise ROE and to actively expand “productive finance.” Jin mentioned a report by the group’s Future Strategy Research Institute titled “What will change when home prices stabilise,” saying that if housing prices stabilise, funds will move to capital markets and productive finance, including corporate lending, could become a new growth engine.

On “Value-up 2.0,” which is being discussed with a focus on the board of directors, he said Shinhan will check the results of the existing plan, reflect investor opinions and disclose it soon.

In the closing of the letter, Jin said, “A bank for the nation will be realised through productive finance, a trustworthy bank through thorough internal controls and risk management, and a world-class bank through challenges on the global stage.” He added, “Based on our founding spirit, we will complete a top-tier Shinhan.”