According to the terms of the agreement, BNP Paribas will acquire 50% (minus one share) of the existing Shinhan Investment Trust Management Company which will change its name to "Shinhan-BNP Paribas Investment Trust Management Company". It will become a 50/50 joint venture company of Shinhan Financial Group and BNP Paribas Asset Management.
BNP Paribas Asset Management is one of the major players in Europe with euros 161 billion assets under management as of June, 2002.
Vivien Lévy-Garboua, member of BNP Paribas' Group Executive Committee in charge of Asset Management & Services, said : "This joint venture reflects our strategy to develop local fund management activities in markets with high growth potential, in partnership with the best performing and most reputable players. It is one further step towards a promising alliance in financial services in Korea, to which BNP Paribas shall bring its technical know-how and cross-selling expertise".
Coming after the establishment of the newly merged "GoodMorning Shinhan Securities", the joint venture agreement in Shinhan Investment Trust Management Company will enhance Shinhan Financial Group's competitiveness by rapidly extending its cross-sales capabilities.
According to Shinhan Financial Group's Deputy President Choi Young-Hwi, who led the negotiations of the alliances with BNP Paribas, "due to the participation of BNP Paribas in asset management business of Shinhan Financial Group, we are able to provide financial products with better security and returns to our customers. The joint venture will be an important part of Shinhan's One Portal business model."
The new "Shinhan-BNP Paribas Investment Trust Management Company" will start its official operations around September of this year after changing its current "Shinhan Investment Management Company" name and completion of share purchase and sale. The new joint venture company will aim to become the 5th largest investment management company in Korea by 2005.
The establishment of this joint venture in the asset management business will complement the on-going establishment of other joint ventures (in consumer finance with Cetelem and bancassurance business with Cardif) between Shinhan Financial Group and BNP Paribas.
Shinhan Group (including Shinhan Investment Trust Management, Shinhan Bank, GoodMorning Shinhan Securities, Shinhan Capital, e-Shinhan, Shinhan Card, Shinhan Credit Information and Jeju Bank) is one of the leading financial groups in Korea, offering a broad range of products from retail banking to credit cards, investment trust and middle-market and corporate banking services.
About BNP Paribas
BNP Paribas is a powerful and efficient financial services group, with solid roots in Europe, leading positions in Asia and an active presence in the United States. It is the first bank in terms of net income and market capitalisation in the Euro zone. BNP Paribas has one of the largest international banking networks, present in 85 countries with 85,000 employees. The group has three core businesses: Corporate and Investment Banking; Private Banking, Asset Management, Securities Services and Insurance; Retail Banking.