The move has resulted in MoneyGram's agency network in the country almost doubling, with all 850 Shinhan branches now offering the money transfer firm's services.
It has seen a recent increase in demand for business due to the growing number of migrants entering South Korea for work, as well as a rise in the amount of South Koreans heading abroad to study or seek employment.
And Nick Cunnew, senior regional director for south Asia and Asia Pacific at MoneyGram, said the partnership is an opportunity for the company to grow further in the region.
"Shinhan is a well-respected financial institution with an impressive national network spanning cities and rural communities throughout South Korea," he remarked, adding that MoneyGram is now "better able to meet the needs of consumers".
Earlier this month, MoneyGram announced a net loss of $3.3 million for the second quarter of 2009.
Written by Asim Shah