Question 1

What is Shinhan Finance?

Accepted Answer

Shinhan Finance is a microfinance organization operating in Kazakhstan, specializing in providing accessible financial services to individuals and small businesses. As a wholly-owned subsidiary of Shinhan Card, which is part of the Shinhan Financial Group - one of South Korea's largest financial holding companies - Shinhan Finance combines international expertise with local market knowledge. The organization focuses on installment financing, secured and unsecured microloans, serving both retail customers and legal entities across multiple cities in Kazakhstan.

Question 2

When was Shinhan Finance founded?

Accepted Answer

Shinhan Finance was established on November 21, 2014 as a 100% subsidiary of Shinhan Card. The company began full operations in July 2015 after obtaining its license to conduct microfinance activities from Kazakhstan's financial regulatory authority.

The organization was founded as part of Shinhan Financial Group's global expansion strategy, representing the group's entry into the Central Asian microfinance market. In March 2024, Shinhan Finance transformed into a joint venture when Aster, a prominent local automotive dealer, acquired a 25% stake in the company, with Shinhan Card retaining 75% ownership.

Question 3

Where is Shinhan Finance headquartered?

Accepted Answer

Shinhan Finance is headquartered in Almaty, Kazakhstan, with its main office located at 48 Auezov Street, 2nd floor, Office 2/3. As Kazakhstan's largest city and financial center, Almaty provides strategic access to the country's primary business and consumer markets.

Question 4

Where does Shinhan Finance operate?

Accepted Answer

Shinhan Finance operates across four major cities in Kazakhstan: Almaty, Astana (the capital), Shymkent, and Aktau. This geographic distribution allows the organization to serve customers in Kazakhstan's most economically significant urban centers.

The company opened its Shymkent branch to expand services in southern Kazakhstan, and established a presence in Aktau in 2023 to serve the western region, particularly the Mangystau Oblast. This strategic expansion demonstrates Shinhan Finance's commitment to increasing financial accessibility across different regions of Kazakhstan.

Question 5

What services does Shinhan Finance offer?

Accepted Answer

Shinhan Finance provides a diverse range of microfinance products designed to meet various customer needs:

Vehicle Financing: The organization specializes in installment financing for both new and used automobiles, which has been a core product since the company's inception. This includes partnerships with major automotive dealers, particularly Aster.

Personal Microloans: Shinhan Finance offers both secured and unsecured consumer microloans to individuals. These loans are designed to be accessible, requiring minimal documentation and no guarantors, making them available even to customers with less-than-perfect credit histories.

Business Microloans: The organization provides microfinance services to legal entities, micro-enterprises, and small-to-medium-sized businesses (MSMEs). A significant portion of this lending is earmarked for women-owned businesses, supported by international development finance initiatives.

Pledge-Based Loans: Customers can obtain secured microloans using valuable assets as collateral, with services available for both individuals and businesses.

Digital Services: Shinhan Finance offers electronic microloan applications through its website and integrated digital platforms, including connections to Kazakhstan's e-government portal for streamlined documentation and consent processes.

Question 6

What makes Shinhan Finance unique?

Accepted Answer

International Backing with Local Expertise: Shinhan Finance benefits from being part of Shinhan Financial Group, a major South Korean financial conglomeration with over $500 billion in consolidated assets and operations in more than 20 countries. This provides financial stability, international best practices, and access to sophisticated risk management systems.

Strategic Partnership Model: The 2024 joint venture with Aster demonstrates Shinhan Finance's commitment to building strong local partnerships. This collaboration combines Shinhan's financial expertise with Aster's deep understanding of the Kazakh automotive market.

Rapid Growth and Scale: The organization achieved remarkable growth, with operational assets exceeding $10 million within its first years of operation and surpassing $100 million by 2022. This demonstrates both financial stability and successful market penetration.

International Development Support: In October 2023, the International Finance Corporation (IFC) committed up to $60 million in financing to Shinhan Finance, with at least 25% earmarked for women-owned small businesses. This partnership includes support from the Women Entrepreneurs Opportunity Facility and Goldman Sachs' 10,000 Women initiative, reflecting international confidence in the organization's mission and operations.

Social Responsibility: Shinhan Finance engages in charitable activities, including the "Areumin" library project, which has established libraries in Kazakhstan with substantial book collections, demonstrating commitment to education and community development.

Question 7

What type of financial institution is Shinhan Finance?

Accepted Answer

Shinhan Finance is a microfinance organization (MFO) licensed and regulated under Kazakhstan's Law on Microfinance Activities. In Kazakhstan, microfinance organizations are specialized financial institutions that provide microloans to individuals and small businesses, operating under regulatory supervision from the Agency of the Republic of Kazakhstan for Regulation and Development of the Financial Market.

Unlike traditional banks, microfinance organizations in Kazakhstan focus on providing accessible, smaller-scale credit to underserved market segments, including individuals who may have difficulty accessing conventional banking services and micro-to-small enterprises. Shinhan Finance operates within this regulatory framework while maintaining the financial backing and operational standards of its parent company, Shinhan Financial Group.

The organization is registered as "Shinhan Finance Microfinance organization LLP" (Limited Liability Partnership), which is the appropriate legal structure for microfinance entities under Kazakhstani law.

Shinhan Finance

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About Shinhan Finance in Kazakhstan