KB, Shinhan set for fiercer rivalry as AI-driven shift reshapes finance

KB Financial Group Chairman Yang Jong-hee delivers a lecture to group executives during a management workshop at Grand Walkerhill Seoul, Friday. Courtesy of KB Financial Group

The rivalry between KB Financial Group, which is seeking to hold onto its No. 1 position, and Shinhan Financial Group, eager to regain the top spot, is set to intensify this year as both groups reshuffle their lineups, industry officials said Sunday. This comes at a critical turning point for the financial sector, marked by the rise of artificial intelligence (AI) and a prolonged low-growth environment.

KB Financial has recently reshaped its organizational structure, launching a new future strategy division that integrates group-wide strategy, synergy and environmental, social and corporate governance functions with AI, data and digital innovation initiatives. The reorganization underscores KB’s full-scale push to accelerate AI-led transformation across the group this year.

As part of that effort, KB convened a management workshop last Friday, bringing together its entire executive leadership to review business strategies under the theme “Transition and Expansion.”

During the session, Chairman Yang Jong-hee said, “All executives and employees must evolve into strategists and innovators who lead change by leveraging AI as a strategic asset to accelerate the transformation of business models and work practices, while expanding into new markets and customer segments.”

The workshop also featured talks on topics such as the shifting boundaries between science and technology in the AI era, the enduring value of storytelling beyond the reach of technology and the importance of precise communication to avoid misinterpretation in an AI-driven environment.

In his New Year address, Yang also emphasized that with AI expected to reshape financial markets, the industry as a whole is “facing a paradigm shift at both the national and societal levels.”

Shinhan Financial Group Chairman Jin Ok-dong speaks during a management strategy meeting at Shinhan Bank’s training center in Yongin, Gyeonggi Province, Saturday. Courtesy of Shinhan Financial Group

Shinhan Financial Group, which lost its position as the leading financial group to KB Financial in 2023, held a three-day management strategy conference last week, attended by about 250 executives and employees, signaling a strong resolve to reclaim the top spot.

Extended by a day compared with previous years, the event featured intensive, in-depth discussions aimed at strengthening innovation and execution, with participants reflecting on past shortcomings and committing to meaningful change.

Chairman Jin Ok-dong, who recently secured another term, personally led the entire three-day session without a moderator, urging leaders to think independently and take full responsibility for driving innovation.

Speaking in December after securing another term, Jin named AI as a central priority for the coming three years.

“It is critical for CEOs to consider how AI will influence the financial industry, identify the issues leaders must address and anticipate how the future landscape will evolve,” Jin said at the time. “Early preparation is key. Long-term success ultimately depends on becoming a company that earns lasting trust.”

Earlier, the company reshuffled its organizational structure to establish a future innovation group tasked with driving organization-wide innovation. Through this, the firm plans to focus on priority initiatives in the medium to long term, including senior wealth management, expanding its foreign customer base and strengthening its capabilities in digital assets.