Shinhan Bank, Korea's third largest bank, has combined its commercial bank with its investment group to create a wealth management entity, local reports show.

The company, known mainly for its commercial banking capabilities, is merging its commercial banking strengths with those of Shinhan Investment, its brokerage affiliate, to create an independent unit that will focus on wealth management and corporate investment banking. Both firms will still operate separately.

The service was piloted at four of the bank's private banking branches in December. Under the new firm, retail clients can use investment and finance advisory services from an in-house team of wealth management specialists, while corporate customers will gain access to pre-emptive risk management tools through the unit's CIB business divison. 

The decision to launch an independent "bank plus brokerage" entity is the bank's response to "momentous growth in overseas markets," said reports. In 2011, Shinhan Bank opened two branches in Japan, two in Vietnam, one in Cambodia and one in China. At present, the bank has 57 branches and two representative offices in 14 countries.