South Korea’s Shinhan Bank is set to establish a full-scale presence in Uzbekistan by launching a local subsidiary, according to reports from Maeil Business Newspaper citing financial sector sources.
The move marks Uzbekistan as the first major international venture under the second term of Shinhan Financial Group Chairman Jin Ok-dong, who has identified overseas expansion as a cornerstone for future growth.
Preparations are already well underway; a dedicated team dispatched to the country has completed the bulk of the preliminary work, and local regulatory relations have been established. Operations are expected to go live as early as 2027.
Shinhan’s ambitions in Uzbekistan date back to the late 2000s. After launching a subsidiary in Kazakhstan in 2008 and an office in Tashkent in 2009, the bank ramped up its efforts in 2024. Senior representatives visited the country for high-level talks with financial authorities, followed by a visit from the Chairman of Shinhan Financial Group himself.
The report highlights Uzbekistan’s high growth potential as the primary driver for this move. With a population of roughly 37 million and a median age of 29, the country boasts a dynamic demographic profile and is undergoing a significant economic transformation.
Shinhan Bank views the local financial market as being in its early stages with immense room for expansion. Key growth drivers include high interest rates and a rising demand for lending and foreign exchange services.
“We believe that early market entry—similar to our successful strategy in Vietnam—will provide a long-term competitive advantage,” a bank representative stated.
Shinhan Bank intends to leverage its success in Kazakhstan as a blueprint for its expansion into Uzbekistan. In the neighboring market, the bank initially focused on corporate services for South Korean firms before scaling up to serve local businesses and entering the retail lending sector, including mortgages.
This strategy proved highly effective, turning Kazakhstan into one of the group's most vital overseas markets, alongside Vietnam and Japan.
The new bank will be headquartered in Tashkent, where Shinhan Bank’s representative office is currently located. It is expected to become the second bank in the country backed by South Korean capital, following KDB Uzbekistan (a subsidiary of the Korea Development Bank).
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