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Shinhan and Hana financial groups formed a partnership in seeking business opportunities and establishing presence abroad.
A memorandum of understanding (MOU) signed by Shinhan Chairman Cho Yong-byoung and Hana Chairman Kim Jung-tai includes coping with various regulations and making investments in foreign markets.
The groups also promised to pursue other types of cooperation.
The MOU was the first the two firms have signed with each other.
The financial holding firms said they wish to rank higher against the global competition by not competing with each other and by pursuing innovation through cooperation.
The two Korean financial services companies have been competing fiercely overseas, trying to outperform each other in China, Japan, and Southeast Asia.
While Shinhan's focus is on the Vietnamese and Japanese markets, Hana has been putting in more resources on China and Indonesia.
As of 2019, Shinhan had 216 branches in 20 countries, while Hana had 199 outlets in 24 countries.
