Shinhan Financial Group Chairman Jin Ok-dong / Courtesy of Shinhan Financial Group

Shinhan Financial Group Chairman Jin Ok-dong said Sunday that the group was committed to the government's Corporate Value-up Program. In addition, the group is looking to bolster shareholder returns, promote the healthy growth of the country's capital market and support viable postretirement plans for older adults.

In a 16-page letter to shareholders, Jin stressed the importance of the value-up drive.

"I have been and will continue to be adamant that the corporate value enhancement measures are needed," he said.

The chair also said financial investment will emerge as a new alternative to property investment in an age of pension reform.

"The income replacement rate for Korea's state-run pension program subscribers is limited to the low 40 percent. This is far lower compared to the advanced peers of Korea including the U.S. where the rate is in the 60-percent range."

The group's efforts to implement the value-up drive announced in July of last year will help investors seek a balanced source of income, he added.

"[The] property market is often the go-to investment choice for many, but the value-up plan will provide a healthy alternative. Shinhan will continue to bolster the value-up drive."

The chair reiterated the group's plan to become both the best-in-class and the first-choice financial service provider.

"This year, we will grow not only in size but also in quality. Shinhan Financial employees will make sure they carry themselves with a sense of responsibility and integrity to focus on qualitative growth."

Internal controls will also be strengthened to prevent major irregularities similar to that of last year, he said.

"It is not just about the amount of loss incurred. It is the failure of internal controls, an incident we should never tolerate as a first-class organization," he said.