South Korea’s top Shinhan Financial Group will expand its investment banking, global, and digital businesses in a major organizational reshuffle under Cho Yong-byoung, the group’s chairman and chief executive who undertook the position in March. The reshuffle, which was approved by the board of directors on Tuesday, is aimed at merging each of the businesses currently managed separately by the group’s units to boost operational synergy and become a financial leader in Asia by 2020.

According to the reshuffle plan, the group will have a larger investment banking division responsible for capital markets by adding investment banking workforce of Shinhan Life Insurance Co. and Shinhan Capital Co. to the existing corporate and investment banking unit that has been led by Shinhan Financial, Shinhan Bank, and Shinhan Financial Corp. Employees of each affiliate in charge of investment banking business will also be called in to work at Shinhan Financial Corp. headquarters in Yeouido, Seoul, to boost management efficiency.

The overall move is aimed at enhancing the group’s monitoring system and reducing risk in investment banking business. By enhancing its global investment capability, Shinhan Financial aims to expand the net profit share of its investment business from the current 8 percent of the group’s total to 14 percent by 2020.

Shinhan Financial Group will also revamp its global business by appointing a global business chief overlooking overseas businesses of five units -financial group, bank, credit card, financial investment, and life insurance to be more responsive to changes and needs of overseas markets. The new chief will also carry out the role as vice president of the five units and make decisions on the group’s global businesses, set up strategies and work as a control tower. Shinhan Financial Group aims to expand net profit share of its global business from the current 7 percent to 20 percent by 2020.

As part of efforts to enhance its digital business, Shinhan Financial Group also plans to appoint chief digital officers at each unit and create and manage a chief digital officer council to set up digital business strategy of the group.

The financial group will also newly create a digital innovation organization that researches five core digital areas - artificial intelligence, block chain, open application programming interface, cloud, and digital experience.

By Kim Tae-sung

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