Shinhan Card has initiated a major organizational restructuring aimed at sustainable future growth. In an effort to reduce costs, they have conducted additional voluntary retirements after six months and have streamlined core functions by consolidating team-specific core functions into new divisions to minimize resource duplication.
On the 18th, Shinhan Card announced a reorganization for the second half of the year, with a focus on organizational renewal to secure long-term competitiveness and minimize resource duplication. The current “4 Groups, 20 Divisions, 81 Teams” structure has been restructured to “4 Groups, 20 Divisions, 58 Departments.”
By consolidating team-specific core functions around departments, Shinhan Card intends to enhance work efficiency and expand a “performance-oriented culture” by granting both responsibility and authority together.
In the rapidly changing digital payment market, the “Payment R&D Team” dedicated to technology development and the “Sales Planning Team” overseeing sales strategy have been integrated into the “Sales Planning Department” to boost practical sales performance.
Furthermore, the “Customer Marketing Team” and “Future Customer Team” have been merged into the “Customer Marketing Department” to serve as a control tower for company-wide marketing strategies. This department will handle not only generation-specific marketing tailored to life cycles but also customized marketing strategies for foreign customers.
To organically manage the product lineup operated across the company, including credit, check, and prepaid products, the “Product R&D Team” and “Check/Prepaid Team” have been integrated into the “Product R&D Department.”
The decision-making processes have been simplified, focusing leadership to swiftly respond to both internal and external business environments by reorganizing the number of part organizations from 36 to 12. To enhance channel efficiency due to changes in the sales environment, the CRM Center, Financial Center, etc., have been converted to a direct management system by the head office.
Alongside the organizational overhaul, they have implemented HR measures for the second half focusing on human resource renewal and strengthening performance generation capabilities.
By appointing leaders based on performance and competence, Shinhan Card aims to foster a virtuous cycle of human resources and reinforce organizational dynamism. They have also established the role of ‘Team Leader (Department Head Equivalent)’ to swiftly stabilize the organization and create a foundation for nurturing future leaders for stable business succession.
A Shinhan Card representative stated, “This organizational restructuring and personnel measures focus on strategically restructuring the business structure for sustainable future growth,” adding that “Through organizational renewal and improvement, we will respond swiftly to the rapidly changing business environment and further strengthen our long-term competitiveness.”
On another note, Shinhan Card will accept applications for voluntary retirement from June 19 targeting all ranks of employees born between 1968 and 1979. This expansion in rank and age band follows a voluntary retirement in December of the previous year, marking a significant feature. This is seen as an effort to reduce costs by cutting workforce. Voluntary retirements are usually conducted at the end of the year, so an additional round in June is quite unprecedented. Since losing the first place in net income to Samsung Card last year, there have been consistent calls for restructuring.