Shinhan Bank is the descendant of Hanseong Bank, the first modern bank in Korea. It was established by Kim Jong-Han in 1897, but began operating around 1900. It was originally located in a small house with only two rooms. One room was for the president, Yi Jae, and the other room was for the staff. The bank operated by borrowing money from Japanese banks at low interest rates and then loaning it out for twice the rate to the Korean market. The Bank was successful because despite lending out money at twice the rate it borrowed it at, the bank’s interest rates were still far lower than what could be obtained elsewhere in Korea at that time.
In an anecdotal story the bank’s first property to use as collateral on a loan happened to be a donkey. The bank staff were challenged to feed and care for their collateral as the loan was out.
In March 2013, the Financial Services Commission of South Korea said that Shinhan Bank reported that its Internet banking servers had been temporarily blocked. The South Korean government asserted a North Koreanlink in the March cyberattacks, which has been denied by Pyongyang.
A principal bank in South Korea is planning to impose more regulations on accounts to closely monitor cryptocurrency exchanges, according to a report from Cointelegraph citing Korean news outlet BEI News.
Shinhan Bank plans to take special measures in response to claims that the bank has been aiding the rise of financial criminals committing fraud involving cryptocurrency exchanges. These special measures reportedly include the devotion of staff to analyze account transactions.
The bank could also utilize an artificial intelligence monitoring system in the future to detect fraudulent transactions immediately and more accurately.
“We have set up a comprehensive plan for the elimination of telecommunication and financial fraud,” a spokesperson for the bank said, per Cointelegraph. “We will continue to implement preventive measures so that customers will not be harmed in the future.” The stricter regulations may also be motivated by recent cryptocurrency hacks. In June 2018, Bitcoin Magazinereported that the South Korean exchange platform Bithumb lost $30 million worth of cryptocurrencies as a result of a hack.