South Korea's Shinhan Bank is planning a full entry into the Uzbek market by opening a subsidiary branch, according to the Maeil Business Newspaper, citing sources in the financial sector.
Uzbekistan was reportedly chosen as the first major international project under the second term of Shinhan Financial Group Chairman Chin Ok-dong, who allegedly views overseas expansion as a key driver of future growth.
The bank has purportedly completed internal procedures for establishing a subsidiary and plans to submit an application to Uzbek financial authorities in the first half of the year. If approved, this would become the bank's 11th overseas subsidiary and the first such project among South Korean commercial banks in Uzbekistan.
Cooperation with local regulators is said to be established, and the bank team sent to the country has allegedly completed most of the preparatory work. The unit is expected to begin operations as early as 2027.
Plans for Shinhan Bank's entry into Uzbekistan have been discussed since the late 2000s. In 2008, the bank opened a subsidiary in Kazakhstan, and in 2009, a representative office in Tashkent. In 2024, bank representatives reportedly visited Uzbekistan for negotiations with financial authorities, and later the head of Shinhan Financial Group also visited the country.
The article emphasizes that Uzbekistan's selection is due to its high growth potential. With a population of nearly 37 million and an average age of 29, the country has dynamic demographics, and its economy is allegedly undergoing active transformation.
The bank estimates that the republic's financial market is still in its early stages of development, with broad growth potential. Growth factors cited include high interest rates, increased lending, and foreign exchange operations.
"We believe that early market entry, as was the case in Vietnam, will provide a competitive advantage in the long term," a bank representative was quoted as saying.
Shinhan Bank plans to use its Kazakhstan experience for business development in Uzbekistan. There, the bank initially focused on corporate services for Korean companies, later expanding into local business and retail lending, including mortgages.
As a result, Kazakhstan has become one of the group's key foreign markets, along with Vietnam and Japan.
Entry into the Uzbek market is also planned jointly with the Shinhan Card division. In Kazakhstan, the group has developed auto lending through a joint venture with Astana Motors, a major used car market operator. A similar model is planned for Uzbekistan.
The entry into Uzbekistan aligns with Shinhan Financial Group's previously announced "quality growth" strategy. The company believes that developing countries offer higher potential for capital profitability compared to the saturated domestic market of South Korea.
The new bank will be established in Tashkent, where Shinhan Bank already has a representative office. It is expected to become the second bank with South Korean capital after KDB Uzbekistan (a subsidiary of KDB Industrial Bank).
On-site operations are led by office head Kim Yoseop. In August 2024, he was reportedly due to return to headquarters after five years at Shinhan Bank Kazakhstan, but instead was redirected to Uzbekistan. He is seen as a suitable candidate to transfer the successful experience gained in Kazakhstan.
In February 2025, the Central Bank of Uzbekistan and Shinhan Bank discussed the privatization of state banks. At that time, representatives of the South Korean bank reportedly expressed plans to expand their activities in the country's market.
Source: www.gazeta.uz