[Alpha Biz= Paul Lee] Shinhan Card, which recently lost its long-held position as the No. 1 card issuer in Korea, announced a sweeping organizational restructuring on June 18, including voluntary retirements and a 28% reduction in team leader positions.



The company said it has reorganized its structure from "4 groups, 20 divisions, and 81 teams" to a streamlined "4 groups, 20 divisions, and 58 departments" to enhance operational efficiency. As part of this reorganization, Shinhan Card also carried out its mid-year personnel reshuffle. The move is expected to reduce the number of team leader positions by approximately 30%.



To further accelerate organizational renewal, the company is accepting applications for voluntary retirement from all employees born between 1968 and 1979. Eligible applicants may receive up to 30 months’ worth of average monthly salary as severance. This marks Shinhan Card's second round of voluntary retirements in six months, following a similar program in December targeting those born between 1968 and 1974.



As part of the restructure, several departments are being consolidated: the Payment R&D and Sales Planning teams will merge into a single Sales Planning Department; the Customer Marketing and Future Customer teams will be combined into the Customer Marketing Department; and the Product R&D and Check/Prepaid Card teams will form the unified Product R&D Department. In addition, centers such as CRM and Financial Services will be placed under direct control of the headquarters to enhance channel efficiency.



Industry observers point to weak financial performance as a key driver of the overhaul. In 2023, Shinhan Card posted a net profit of KRW 572.1 billion, falling behind Samsung Card’s KRW 664.6 billion. In the first quarter of 2024, Shinhan Card’s net profit dropped by 26.2% year-over-year to KRW 136.9 billion, again trailing its main rival.

 

 

 

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