Shinhan Financial Group launches first Korean financial holding company in Indonesia

Shinhan Financial Group has launched the first South Korean financial holding company in Indonesia. The new entity, Shinhan Financial Group Indonesia, is centered around Shinhan Indonesia Bank, which will serve as the business holding company to integrate banking, card, and securities operations.

This restructuring follows Indonesian financial authority mandates to establish holding companies to clarify ownership structures and improve risk absorption. As part of the transition, Shinhan Indonesia Bank acquired majority stakes (50% plus one share) in local subsidiaries Shinhan Indonesia Finance and Shinhan Securities Indonesia.

To expand its local footprint, Shinhan Financial Group signed a memorandum of understanding with Sinar Mas Group, one of Indonesia’s largest conglomerates. The partnership aims to explore new business opportunities in corporate and supply chain finance by combining Shinhan’s financial expertise with Sinar Mas’s extensive industrial network.