Shinhan Financial Group revises independent director appointment standards, strengthens internal controls

[Financial News] The board of Shinhan Financial Group Co., Ltd. met with domestic and overseas institutional investors to discuss strategies for enhancing corporate value and plans for shareholder returns. Shinhan Financial Group is also moving quickly to establish sound governance by revising its standards for appointing independent directors and strengthening its internal control system.
Shinhan Financial Group Co., Ltd. said on the 30th that its board held a board roundtable meeting on the 27th at Grand Hyatt Seoul in Yongsan District, Seoul, inviting domestic and overseas institutional investors.
The board roundtable is an annual forum designed to invite major domestic and overseas investors to discuss the group's mid- to long-term strategy and governance, while building mutual understanding and trust with investors.
This meeting was attended by 50 domestic and overseas institutional investors, both in person and online. Six independent directors, including Board Chairman Kwak Soo-geun, and key executives such as Shinhan Financial Group Chairman Jin Ok-dong also took part.
The institutional investors asked questions centered on key issues, including the mid- to long-term direction for enhancing corporate value, shareholder return plans, and the evaluation and compensation systems for the board and management.
Shinhan Financial Group explained that it newly revised its principles for appointing independent directors this year. The group has adjusted the standards to expand the pool of candidates with practical experience in finance, and plans to use the Board Skills Matrix to select candidates and strengthen the board's expertise.
It also shared measures to strengthen internal controls. In June, it became the first in the financial sector to build a groupwide artificial intelligence-based internal control platform, helping frontline staff carry out their management duties. The group also plans to improve the effectiveness of internal controls by using the Group Internal Control Committee to request corrective action on shortcomings.
Kwak Soo-geun, chairman of the board of Shinhan Financial Group Co., Ltd., said, "The establishment of sound governance and responsible management is at the core of our plan to enhance corporate value." He added, "The board of Shinhan Financial Group will continue to work toward becoming a trusted company that grows together with investors through transparent information disclosure and open communication."
Shinhan Financial Group Chairman Jin Ok-dong said, "Based on active communication with various stakeholders, we updated our corporate value enhancement plan through the announcement of Value-Up 2.0 in April." He added, "Shinhan Financial Group will do its utmost to turn investors' diverse opinions and advice into a valuable foundation for sustainable growth."
Shinhan Financial Group disclosed its new corporate value enhancement plan, "Shinhan Value-Up 2.0," in April. The key feature is the introduction of a shareholder return formula linked to return on equity (ROE) and growth rates, based on maintaining an appropriate common equity tier 1 ratio. The plan will be applied from this year through 2028.
[email protected] Lee Hyun-jung Reporter