Shinhan Bank prepares entry into Uzbekistan market

Tashkent, Uzbekistan (UzDaily.com) — South Korea’s Shinhan Bank Co. is preparing to enter the Uzbekistan market, which is regarded as one of the most promising in Central Asia, according to Pulse.

The move is part of Shinhan Financial Group’s international strategy and marks the first major overseas project in the second term of group chairman Jin Ok-don, who has identified global expansion as a key driver of future growth.

According to financial sector sources, the bank has already taken an internal decision to establish a subsidiary in Uzbekistan. The application to local financial regulators is expected to be submitted in the first half of this year.

If approved, the new entity will become Shinhan Bank’s 11th overseas office and the first case among major South Korean commercial banks of establishing a fully localized structure in Uzbekistan. A significant portion of preparatory work has reportedly already been completed, with key issues coordinated with regulators.

Industry estimates suggest that full-scale operations of the Uzbek subsidiary could begin as early as next year.

Shinhan Bank’s interest in Uzbekistan has developed over nearly 17 years. After opening a subsidiary in Kazakhstan in 2008, the bank established a representative office in Tashkent in 2009. In 2024, head office staff participated in discussions with Uzbek financial authorities.

Later, Shinhan Financial Group chairman Jin Ok-don personally visited Uzbekistan in April last year to discuss not only the establishment of a bank but also broader financial cooperation.

The decision to enter the market is linked to the assessment of Uzbekistan’s high economic potential. With a population of around 37 million and an average age of approximately 29, the country is characterized by a young demographic structure and ongoing industrial transition.

The bank views Uzbekistan’s financial sector as being at an early stage of development with significant growth potential. Rising demand for lending and foreign exchange operations is also noted, alongside relatively high interest rates of around 14%.

Shinhan Bank plans to follow a model previously used in Kazakhstan, initially focusing on corporate clients before expanding into retail banking, including mortgage lending and cooperation with local companies.

In the longer term, the bank aims to create synergies between its regional units and develop joint financial products. Expansion of Shinhan Bank and Shinhan Card activities in Uzbekistan is also under consideration, including auto financing and partnership projects with local firms.

The group notes that fast-growing international markets such as Uzbekistan provide opportunities to enhance capital returns and strengthen its global financial position.