Following the terms of the agreement, Shinhan Financial Group will sell a 4% share to BNP Paribas
The bancassurance company is to be established with Cardif upon receiving approval from the relevant regulatory body while the consumer finance company with Cetelem will be established following the planned revision of the Credit Specialised Financial Institutions Act.
This Strategic Alliance will allow BNP Paribas to introduce its advanced financial products and services to the high potential Korean market while Shinhan Financial Group will have the capability to provide its clients with a greater range of high quality financial services.
Shinhan Financial Group and BNP Paribas plan to broaden the scope of the Strategic Alliance beyond the existing joint ventures and to strengthen the relationship between the two parties.
Cetelem, leader in consumer finance in Europe, is a partner of reference for retailers, banking establishments to whom it brings a know-how in matter of credit, scoring, risk management and marketing. For more than 15 years, Cetelem has been having an ambitious strategy of internationalization which has led it to 21 countries. In Asia, Cetelem is also present in Taiwan and in Thailand where it recently signed a partnership agreement with the Thai Farmers Bank.
Cardif sells insurance products trough partnership agreements worldwide with banks and financial institutions, as well as trough brokers and independant financial advisors. In Asia, Cardif has concluded an exclusive partnership agreement concerning insurance of individuals with the State Bank of India, first bank of India.
BNP Paribas ranks 4th among French life insurance groups with its two subsidiaries Cardif and Natio Vie. More than 40 % of Cardif's premium income is realised outside France, in 24 countries.