Shinhan sets up Indonesian financial holding company

Shinhan Financial Group has launched a local financial holding company in Indonesia, bringing its banking, financing and securities operations under one structure as it seeks to expand in Southeast Asia’s largest economy. Shinhan says it is the first Korean financial group to establish a holding company in the country.

Shinhan Indonesia Bank became the operating holding company, while continuing its banking operations. It now owns 50% plus one share in each of Shinhan Indo Finance and the group’s local securities business, after acquiring stakes previously held by Shinhan Card and Shinhan Investment & Securities. The restructuring was completed on 16 September 2026.

The change gives Shinhan a single structure for managing its Indonesian businesses and follows a regulatory requirement introduced in December 2024. The move matters for foreign financial groups operating in Indonesia because the rules require qualifying conglomerates to establish local holding companies with responsibility for governance, risk management and capital adequacy.

Why Shinhan changed its structure

Shinhan began the restructuring after the Indonesian authorities set the requirement in December 2024. It received local regulatory approval in September 2025 and completed the change after transferring shares. The launch ceremony took place in Jakarta on 12 October, attended by Shinhan chairman Jin Ok-dong and Indonesian financial officials.

The group entered Indonesia in 2015, and its local businesses now employ about 900 people, according to Shinhan. The new structure is intended to speed up decisions, strengthen cooperation between its units and improve operating efficiency. Other Korean financial groups are also pursuing local holding-company arrangements: KB Financial has received approval for a plan, while Hanwha Life has submitted one.

Sinar Mas agreement and next steps

At the launch ceremony, Shinhan signed a memorandum of understanding with Sinar Mas, which the group identifies as Indonesia’s fourth-largest business group. The companies plan to explore cooperation by combining Sinar Mas’s local industrial network with Shinhan’s financial services, including in corporate and supply-chain financing.

Jin said the holding company provides a foundation to operate Shinhan’s Indonesian businesses under one structure and described the agreement as a step towards expanding its local business. The announcement did not specify the value of any planned financing, a timetable for projects or whether the memorandum will lead to binding agreements.

This report draws on information from The Asia Business Daily and The Korea Herald.