Shinhan Card Soars to the Top: President Moon Dong-kwan’s Winning Strategy for Internal Control and Risk Management
Shinhan Card’s Vision for the Future: A Platform Company
Moon Dong-kwan, CEO of Shinhan Card, believes that a paradigm shift in core business is essential for survival in the credit card industry. With over 20 years of experience in the business, he is determined to lead the company towards a new vision – a platform company.
According to President Moon, the current market that relies only on card business has its limitations, and the challenges of discovering new business models are significant. He aims to reduce Shinhan Card’s reliance on credit card business to 50%, compared to the industry average of 90%.
The actual card business has limitations that differ from other financial industries. Card companies without a reception function have been making profits through credit sales, but repeated cuts in card merchant commission rates have seen profits on new sales deteriorate into the 0% range.
President Moon emphasizes the importance of analyzing trends of individual customers and converting their data to provide customized, differentiated services. “We must strive to make customers feel personalized beyond just the card plate transaction,” he said.
Improving Performance and Expanding Digital Sector
Under President Moon’s leadership, Shinhan Card has improved its business structure by cutting costs and implementing strategies to expand online and offline platforms. The company achieved a net profit of KRW 379.3 billion in the first half of this year.
The number of monthly active users (MAU) based on platforms such as Shinhan SOL Pay reached 12.11 million in the first half of this year, a year-on-year increase of 14.3%. The amount of digital payments also increased by 19.6% to 25.5 trillion won in the first half of this year.
Artificial Intelligence and Global Expansion
Shinhan Card is actively working to ensure competitiveness using Artificial Intelligence (AI). Through the ‘AI 5025’ project, President Moon has developed a ubiquitous innovation model with the use of more than 170 AI models in all business areas.
President Moon’s No. 1 DNA strategy is being actively spread abroad. In early August, he visited Kazakhstan, where Shinhan Card’s foreign subsidiary Shinhan Finance is based, and held a ceremony to launch a joint venture (JV) with Aster Auto, a local used car dealer.
Management Philosophy and Future Plans
President Moon aims to play a role and responsibilities faithful to the fundamentals based on the management keywords of ’customer-centric management’, ‘strengthening internal control’ and ‘growing together with stakeholders’.
He emphasizes the importance of risk management and internal controls, and has delivered a message that the company should focus on risk management in the second half of this year.
Biography of Shinhan Card CEO Moon Dong-kwan
- 1968: Born
- 1993.2: Yonsei University Department of Business Administration
- 1996.1: Joined LG installment finance
- 2004.10: LG Card Risk Management Team Leader
- 2005.1: LG Card Business Management Team Leader
- 2009.2: Shinhan Card Business Management Team Manager
- 2013.1: Shinhan Card Product R&D Center Manager
- 2014.12: Shinhan Card Strategic Planning Team Manager
- 2017.1: Head of Shinhan Card Yongnam BU
- 2018.1: Shinhan Card Planning Director
- 2019.1: Shinhan Card Executive Director (Management Planning Group)
- 2021.1: Shinhan Card Vice President (Management Planning Group)
- 2023.1: CEO and President of Shinhan Card (Current)