Shinhan Card, which lost its position as the number one in the card industry, has implemented voluntary retirement and initiated a massive organizational overhaul, reducing the number of Head of Team positions by 28%.
Shinhan Card announced on the 18th that it has restructured to a '4 Group 20 Headquarters 58 Departments' system in order to consolidate the '4 Group 20 Headquarters 81 Teams'. Accordingly, personnel changes have been made for the second half of this year, resulting in about a 30% reduction in Head of Team positions. Shinhan Card explained that this is aimed at minimizing resource duplication and improving its organizational structure to secure long-term competitiveness.
Shinhan Card has also decided to accept applications for voluntary retirement from all ranks born between 1968 and 1979. For those who apply, up to 30 months' worth of average monthly salary will be provided as severance pay. This voluntary retirement comes about six months after the last voluntary retirement for those born between 1968 and 1974, with an expanded age group.
Specifically, the Payment R&D Team and the Sales Planning Team will be merged into the Sales Planning Department. Additionally, the Customer Marketing Team and the Future Customer Team will merge into the Customer Marketing Department, while the Product R&D Team and the Prepaid Check Team will form the Product R&D Department. The CRM center and the Financial Center will also be directly managed by the headquarters to enhance channel efficiency.
This organizational restructuring is interpreted as a response to poor performance. Shinhan Card recorded a net profit of 572.1 billion won at the end of last year, losing its industry-leading position to Samsung Card, which had 664.6 billion won. The net profit for the first quarter of this year was also 136.9 billion won, a decrease of 26.2% compared to the same period last year, falling behind Samsung Card.