Shinhan Bank was founded in Seoul in 1897, marking the inception of modern banking in Korea. The establishment was spearheaded by Lee Won-taek, who aimed to create a financial institution that could facilitate the growing economic activities of the time. During this period, Korea was undergoing significant socio-economic changes, influenced by both internal reforms and external pressures from Western powers. Shinhan Bank positioned itself as a pioneer, providing a new framework for financial transactions and investments that had previously been absent in the Korean economy.

Initially, Shinhan Bank focused on providing loans, collecting deposits, and offering basic financial services adapted to the needs of local businesses and citizens. This allowed for increased capital flow in the economy and supported various sectors like agriculture, trade, and manufacturing, which were critical for Korea's development during its transition toward modernization. Over time, the bank expanded its services and footprint, adapting to changes in the economic environment and integrating innovations in banking practices.

As the years progressed, Shinhan Bank not only increased its presence within Korea but also started to explore overseas markets, building international ties that were crucial for Korea's economic participation on a global scale. The bank’s ability to innovate, coupled with its resilience during periods of economic turbulence, solidified its role as a backbone of Korea's banking sector. Even today, Shinhan Bank remains among the largest financial institutions in South Korea, reflecting the successful legacy of its founding ideals.