Edgar Filing: SHINHAN FINANCIAL GROUP CO LTD

SHINHAN FINANCIAL GROUP CO., LTD.

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

FORM 6-K

REPORT OF FOREIGN PRIVATE ISSUER
Pursuant to Rule 13a-16 or 15d-16 of
the Securities Exchange Act of 1934

For the Month of November 2006

SHINHAN FINANCIAL GROUP CO., LTD.

(Translation of registrant’s name into English)

120, 2-Ga, Taepyung-Ro, Jung-Gu, Seoul 100-102, Korea
(Address of principal executive offices)

Indicate by check mark whether the registrant files or will
file annual reports under cover of Form 20-F or Form 40-F.

Form 20-F þ Form 40-F o

Indicate by check mark if the registrant is submitting the Form 6-K
in paper as permitted by Regulation S-T Rule 101(b)(1): o

Indicate by check mark if the registrant is submitting the Form 6-K in
paper as permitted by Regulation S-T Rule 101(b)(7): o

Indicate by check mark whether the registrant by furnishing the
information contained in this form is also thereby furnishing the
information to the Commission pursuant to Rule 12g3-2(b) under the
Securities Exchange Act of 1934.

Yes o No þ

If “Yes” is marked, indicate below the file number assigned to the
registrant in connection with Rule 12g3-2(b): 82- .

Summary of 2006 3Q Business Report

On November 14, 2006, Shinhan Financial Group (“SFG”) filed the 2006 3Q business report (the “Business Report”) with the Financial Supervisory Service of the Republic of Korea (“Korea”) pursuant to the Securities and Exchange Act of Korea. This is the summary of the Business Report translated into English. Non-material or previously disclosed information are omitted or abridged.

The financial information in this report has been prepared in accordance with accounting principles generally accepted in Korea.

Table of Contents


1. Introduction of the Group
2. Business Results
3. Independent Accountant
4. Directors, Executive Officers and Employees
5. Activities of Board of Directors and Sub-committees
6. Market Price Information of Our Common Shares and ADRs
7. Related Party Transactions
Exhibit 99 Independent Accountant's Review Report (Non Consolidated Financial Statements) of Shinhan Financial Group as of September 30, 2006

1. Introduction of the Group

Company History in 2006 3Q

	§		August 16, 2006

			Shinhan Financial Group is selected as preferred bidder for LG Card acquisition

Principal Subsidiaries under Korean Law as of September 30, 2006

Direct Subsidiaries


Subsidiaries	Ownership by SFG
Shinhan Bank ¹⁾		100.0	%
Good Morning Shinhan Securities		100.0	%
Shinhan Life Insurance		100.0	%
Shinhan Card		100.0	%
Shinhan Capital		100.0	%
Shinhan BNP Paribas ITMC		50.0	%
Jeju Bank		62.4	%
SH&C Life Insurance		50.0	%
Shinhan Macquarie Financial Advisory		51.0	%
Shinhan Credit Information		100.0	%
Shinhan Private Equity		100.0	%


1)		As of April 1, 2006, Chohung Bank merged with Shinhan Bank, and the name of the integrated bank is ‘Shinhan Bank.’

Indirect subsidiaries held through direct subsidiaries


		(As of September 30, 2006)

		Ownership by the
Direct Subsidiaries	Indirect Subsidiaries	Parent
Shinhan Bank	Shinhan Data System		100.0	%
	Shinhan Finance Ltd.(Hong Kong)¹⁾		100.0	%
	SH Asset Management Co. Ltd ²⁾		79.8	%
	Shinhan Asia Limited ²⁾		100.0	%
	Shinhan Bank America ²⁾		100.0	%
	Shinhan Bank Europe Gmbh ²⁾		100.0	%
	Shinhan Vina Bank ²⁾		50.0	%
	CHB Valuemeet 2001 year 1^st Securitization		50.0	%
	CHB Valuemeet 2001 year 2^nd Securitization		50.0	%
	CHB Valuemeet 2002 year 1^st Securitization		50.0	%

Good Morning	Good Morning Shinhan Securities Europe		100.0	%
Shinhan Securities	Good Morning Shinhan Securities USA		100.0	%

Shinhan Private Equity	Shinhan NPS Private Equity Fund 1^st		5.0	% ³⁾


1)		On November 1, 2006, Shinhan Finance Limited, Shinhan Financial Group’s indirect subsidiary, was transferred to a branch of Shinhan Bank. The liquidation process is currently taking place and is expected to be finalized by the first half of 2007.

2)		Names of subsidiaries previously owned by Chohung Bank were changed accordingly after the integration with Shinhan Bank.

3)		Shinhan Financial Group and its subsidiaries currently own 36.7% of Shinhan NPS Private Equity Fund 1^st.

Number of Shares by type

The table below shows the number of issued and outstanding shares of the Group as of September 30, 2006


Types of Shares	Number of Shares
Common Shares		381,567,614
Redeemable Preferred Shares		39,767,169

Total		421,334,783

Employee Stock Ownership Plan (ESOP)

(1) Contribution to ESOA (Employee Stock Ownership Association)


		Contribution
Contribution		Amount
from	Contribution Date	(KRW)		Contributor		Use of money
	Feb. 28, 2006		542,407,000	Shinhan Card		Stock Purchase
	March 3, 2006		802,088,300	Shinhan Capital		Stock Purchase
Company	March 6, 2006		10,641,000,000	Shinhan Bank		Stock Purchase
	March 14, 2006		212,552,860	SFG		Stock Purchase
	April 26, 2006		43,240,950	Shinhan Bank		Operating Expenses
	Aug. 9 ~ Sept.4, 2006		19,297,881,928	Shinhan Bank		Stock Purchase
Sub-total			31,539,171,038		—
Employees	—		—		—
Sub-total			—		—

Total			31,539,171,038		—

(2) Changes in ESOA Share Ownership

(Unit: shares)


		Beginning
		Balance						Ending Balance
	Share Type	(Jan. 1, 2006)		Increase		Decrease		(Sept. 30, 2006)
Association Accounts	Common Shares		1,942,413		—		361		1,942,052
Employee Accounts	Common Shares		843,270		1,152,125		26,704		1,968,691

Total	Common Shares		2,785,683		1,152,125		27,065		3,910,743


*		The decrease is due to retirement of employees and withdrawal at maturity.

*		The increase is due to contributions by Shinhan Financial Group, Shinhan Bank, Shinhan Card, and Shinhan Capital

(3) ESOA Share Ownership per each company

(As of September 30, 2006, Unit: shares)


Company	Association Accounts		Employee Accounts		Total Balance
Shinhan Financial Group		36,672		13,492		50,164
Shinhan Bank		1,886,973		1,874,982		3,761,955
Shinhan Capital		18,407		21,576		39,983
Shinhan Card		—		23,649		23,649
Shinhan Life Insurance		—		31,002		31,002
SH&C Life Insurance		—		556		556
Shinhan Credit Information		—		576		576
Shinhan Data System		—		2,858		2,858

Total		1,942,052		1,968,691		3,910,743

2. Business Results

Operational Results

(in millions of Korean Won)


	2006 3Q		2005		2004
	(Jan. 1~Sept. 30)		(Jan. 1~Dec. 31)		(Jan. 1~Dec. 31)
Operating Revenue		1,695,106		1,886,806		1,224,147
Gain using equity method of accounting		1,632,956		1,789,621		1,108,952
Interest income		61,161		95,812		114,264
Other income		989		1,373		931
Operating Expense		124,564		154,873		147,638
Loss using equity method of accounting		46		1,047		212
Operating Income		1,570,542		1,731,933		1,076,509

Source and Use of Funds

Source of Funds

(in millions of Korean Won)


	2006 3Q				2005				2004
	(Jan. 1~Sept. 30)				(Jan. 1~Dec. 31)				(Jan. 1~Dec. 31)
	Average		Ratio		Average		Ratio		Average		Ratio
	Balance ¹⁾		(%)		Balance ¹⁾		(%)		Balance ¹⁾		(%)
Stockholders’ Equity		10,129,914		76.97		8,463,137		77.36		6,770,562		74.00
Capital Stock		2,170,758		16.50		2,100,646		19.20		2,012,812		22.00
Capital Surplus		4,360,105		33.13		3,846,957		35.16		3,485,465		38.10
Retained Earnings		2,876,952		21.86		2,158,881		19.73		1,130,293		12.35
Capital Adjustment		722,099		5.49		356,653		3.26		141,992		1.55
Borrowings		3,030,096		23.03		2,477,425		22.64		2,378,244		26.00
Debentures		2,339,857		17.78		2,090,759		19.11		2,017,816		22.06
Other liabilities		690,239		5.24		386,666		3.53		360,428		3.94

Total		13,160,010		100.00		10,940,562		100.00		9,148,806		100.00


1)		The Average Balance was calculated by averaging the ending balance of each quarter.

Use of Funds

(in millions of Korean Won)


	2006 3Q				2005				2004
	(Jan. 1~Sept. 30)				(Jan. 1~Dec. 31)				(Jan. 1~Dec. 31)
	Average		Ratio		Average		Ratio		Average		Ratio
	Balance ¹⁾		(%)		Balance ¹⁾		(%)		Balance ¹⁾		(%)
Investments on equity stock		11,363,844		86.35		9,060,179		82.81		7,100,773		77.61
Shinhan Bank (pre-merger)		2,214,350		16.83		4,198,207		38.37		3,709,669		40.55
Shinhan Bank ²⁾		6,601,425		50.16		3,393,190		31.01		2,411,868		26.36
Good Morning Shinhan Securities		934,040		7.10		867,403		7.93		610,171		6.67
Shinhan Life Insurance		762,448		5.79		147,558		1.35		—		—
Shinhan Card		559,340		4.25		197,754		1.81		162,378		1.77
Shinhan Capital		165,885		1.26		139,108		1.27		112,775		1.23
Shinhan BNP Paribas ITMC		23,993		0.18		23,139		0.21		22,435		0.25
E-Shinhan		—		0.00		2,197		0.02		2,617		0.03
Shinhan Macquarie FA		1,412		0.01		1,641		0.01		1,159		0.01
Jeju Bank		66,182		0.50		57,606		0.53		49,418		0.54
Shinhan Credit Information		8,909		0.07		8,198		0.07		4,628		0.05
SH&C Life Insurance		17,250		0.13		14,879		0.14		13,655		0.15
Shinhan Private Equity		8,610		0.07		9,300		0.09		1,958		0.02
Investment on Bonds		—		—		—		—		—		—
Loans		1,329,755		10.10		1,667,537		15.24		1,953,788		21.36
Fixed Assets		1,005		0.01		1,296		0.01		1,508		0.02
Intangible Assets		1,006		0.01		1,030		0.01		477		0.01
Cash Deposit in bank		410,611		3.12		177,313		1.62		55,370		0.61
Other Assets		53,789		0.41		33,207		0.31		36,893		0.40

Total		13,160,010		100.00		10,940,562		100.00		9,148,809		100.00


1)		The Average Balance was calculated by averaging the ending balances of each quarter.

2)		Shinhan Bank and Chohung Bank were integrated as of April 1, 2006, under the name of “Shinhan Bank,” Chohung Bank being the legally surviving entity.

Other Financial Information

Requisite Capital Ratio

(in millions of Korean Won)


	2006 3Q (E)			2005			2004
Aggregate Amount of Equity Capital (A)		13,063,775			11,434,001			9,867,854
Requisite Capital (B)		9,853,839			8,609,121			7,625,261
Requisite Capital Ratio (A/B) ¹⁾		132.58	%		132.81	%		129.41	%


1)		Under the guidelines issued by the Financial Supervisory Commission applicable to financial holding companies, we, at the holding company level, are required to maintain a minimum requisite capital ratio of 100%.

Won Liquidity Ratio

(in millions of Korean Won)


	2006 3Q			2005			2004
Won Assets due within 3 months (A)		394,327			341,547			221,335
Won Liabilities due within 3 months (B)		378,996			332,746			212,081
Won Liquidity Ratio (A/B) ¹⁾		104.05	%		102.65	%		104.36	%


1)		Under the guidelines issued by the Financial Supervisory Commission, we, at the holding company level, are required to maintain a Won liquidity ratio of not less than 100%.

Liabilities to Equity Ratio

(in millions of Korean Won)


	2006 3Q			2005			2004
Liabilities (A)		3,061,396			2,325,114			2,325,043
Equity (B)		10,897,232			10,137,017			7,747,609
Liabilities to Equity Ratio (A/B)		28.09	%		22.94	%		30.01	%

Capital Adequacy Ratio and Other Ratios of Certain Subsidiaries

(1) Total Capital Adequacy Ratio (%) *


	2006 3Q		2005		2004
Shinhan Bank **		11.64		10.94		9.40
Jeju Bank		11.70		11.71		10.91


*		The Total Capital Adequacy Ratio is computed in accordance with the guidelines issued by the Financial Supervisory Commission for commercial banks. Under these guidelines, commercial banks are required to maintain a minimum capital adequacy ratio of 8%.

**		As the integrated Shinhan Bank was launched on April 1, 2006, 2006 3Q figures are of the integrated Shinhan Bank whereas the 2004 and 2005 figures are of the pre-merger Chohung Bank, the legally surviving entity.

(2) Net Capital Ratio (%) *


	Sept. 30, 2006		Mar. 31 2006		Mar. 31 2005
Good Morning Shinhan Securities		483.00		558.60		629.22


*		Net Capital Ratio is computed in accordance with the guidelines issued by the Financial Supervisory Service for securities investment trust businesses. Under these guidelines, Good Morning Shinhan Securities is required to maintain a minimum net capital ratio of 100%.

(3) Solvency Margin Ratio (%)


	Sept. 30, 2006		Mar. 31 2006		Mar. 31 2005

Shinhan Life Insurance *		235.9		230.8		204.9


*		Shinhan Life Insurance joined Shinhan Financial Group as the Group’s subsidiary as of December 13, 2005

(4) Adjusted Equity Capital Ratio (%) *


	Sept. 30, 2006		2005		2004

Shinhan Card		16.68		17.68		16.48


*		The Adjusted Equity Capital Ratio represents the ratio of total adjusted shareholder’s equity to total adjusted assets and is computed in accordance with the guidelines issued by the Financial Supervisory Commission for credit card companies. Under these guidelines, Shinhan Card is required to maintain a minimum adjusted equity capital ratio of 8%.

(5) Non Performing Loans

(in millions of Korean Won)


					Dec. 31, 2005				Dec. 31, 2004
					(March 31, 2006 for GMS				(March 31, 2005 for GMS
	Sept. 30, 2006				Securities)				Securities)
	Balance of		NPL to total		Balance of		NPL to total		Balance of		NPL to total
	NPL		Loans (%)		NPL		Loans (%)		NPL		Loans (%)

Shinhan Bank ¹⁾		931,810		0.82		531,349		1.15		814,127		1.89
Jeju Bank ¹⁾		10,373		0.61		16,287		1.15		30,261		2.33
GMS Securities ²⁾		28,417		5.14		26,943		5.71		30,745		11.75
Shinhan Card ³⁾		169,635		5.28		33,420		2.71		37,502		4.46


1)		Non-performing loans of banks are defined as loans that are past due more than 90 days or those that are placed on non-accrual status according to the guidelines of the Financial Supervisory Service.

		For Shinhan Bank, figures for the period ended September 30, 2006 are of the integrated Shinhan Bank, whereas figures for 2004 and 2005 are of the pre-merger Chohung Bank, the legally surviving entity.

2)		Under the guidelines of the Financial Supervisory Service, every securities company shall classify its loans into five categories: “normal,” “precautionary,” “substandard,” “doubtful” and “estimated loss.” Under the Group’s internal measures, non-performing loans of Good Morning Shinhan Securities includes loans classified as “substandard,” “doubtful,” and “estimated loss.”

3)		Under the guidelines of the Financial Supervisory Service, every credit card company shall classify its loans into five categories: “normal,” “precautionary,” “substandard,” “doubtful” and “estimated loss.” Under the Group’s internal measures, non-performing loans of Shinhan Card includes loans classified as “substandard,” “doubtful” and “estimated loss.”

		Figures for the period ended September 30, 2006 include the credit card business of Chohung Bank that was spun-off and merged into Shinhan Card.

(6) Loan Loss Allowances & Write-offs for the period

(in millions of Korean Won)


			Jan. 1, 2006~		Jan. 1, 2005~		Jan. 1, 2004~
			Sept. 30, 2006		Dec. 31, 2005		Dec. 31, 2004

Shinhan Bank ¹⁾	Loan Loss	Domestic		1,684,265		905,000		1,001,800
	Allowance	Overseas		60,849		27,600		51,200

		Total		1,745,112		932,600		1,053,000

	Write-offs			139,600		571,500		1,400,200
Jeju Bank	Loan Loss	Domestic		22,501		25,329		32,299
	Allowance	Overseas		—		—		—

		Total		22,501		25,329		32,299

	Write-offs			6,610		19,145		24,735
GM Shinhan Securities ²⁾	Loan Loss	Domestic		30,818		28,900		30,900
	Allowance	Overseas		—		—		—

		Total		30,818		28,900		30,900

	Write-offs			265		2,300		1,900
Shinhan Card	Loan Loss	Domestic		175,879		46,269		49,785
	Allowance	Overseas		—		—		—

		Total		175,879		46,269		49,785

	Write-offs			116,639		117,583		233,178


1)		2006 3Q figures are of the integrated Shinhan Bank, whereas figures for 2004 and 2005 are for pre-merger Chohung Bank, the legally surviving entity.

2)		The fiscal year of Good Morning Shinhan Securities ends on March 31 of each year. Accordingly, the relevant periods for Good Morning Shinhan Securities are adjusted as follows: (i) from April 1, 2006 to September 30, 2006, (ii) from April 1, 2005 to March 31, 2006, and (iii) from April 1, 2004 to March 31, 2005.

3. Independent Accountant

Audit Opinion for the last 3 years

2006 3Q

FY 2005

FY 2004

Audit / Review

Reviewed

Audited

Audit Opinion

—

Unqualified

Compensation to the Independent Auditor for Audit and Review Services

The following is a description of the fees for audit and review services performed by our independent auditor for the last three years in connection with our financial statements prepared in accordance with generally accepted accounting principles in Korea.

Year

Auditor

Payment (KRW)

Working hours

2006 3Q

KPMG Samjong Accounting Corp.

304,000,000

2,160 hours

2005

KPMG Samjong Accounting Corp.

288,000,000

3,073 hours

2004

KPMG Samjong Accounting Corp.

300,000,000

2,504 hours

Compensation for Services Other than Korean GAAP Audit and Review

The following is a description of the fees and commissions paid to our independent auditor for the services set forth below for the last three years.


	Contract
Year	signed in	Service description	Payment

2006 3Q	2005 Dec.	Audit of the Financial Statements based on US GAAP for FY2005	KRW 1,888,000,000

2005	Jan.	Audit of the Financial Statements based on US GAAP for FY2004	USD 2,000,000

	July	Settlement of taxation affairs	KRW 15,000,000

2004	Jan.	Consulting services for disclosure control and procedure & Internal control system	KRW 1,375,000,000

4. Directors, Executive Officers and Employees

Directors and Executive Officers

1) Executive Directors

Our executive directors are as follows as of March 21, 2006:


Name	Date of Birth	Position	Service Term

Eung Chan Ra	Nov. 25, 1938	Chairman of BOD	3 years starting from March 25, 2004
		Head of the Board Steering Committee

In Ho Lee	Nov. 2, 1943	President & CEO	3 years starting from March 25, 2004
		Board Steering Committee member

Young Hwi Choi	Oct. 28, 1945	Executive Director	3 years starting from March 25, 2004

2) Non-Executive Directors

Currently, twelve non-executive directors are in office. Of the twelve members, ten are outside directors, nominated by our Outside Director Recommendation Committee and appointed pursuant to the approval of general shareholders’ meeting on March 21, 2006.

Our non-executive directors are as follows:


Name	Date of Birth	Current Position	Service Term

Young Seok Choi	Jul. 2, 1929	Non-Executive Director	3 years starting from March 25, 2004
		Audit Committee member

Yong Woong Yang	Aug. 4, 1948	Non-Executive Director	3 years starting from March 25, 2004

Il Sup Kim	Jul. 1, 1946	Outside Director	1 year starting from March 21, 2006
		Head of Audit Committee
		Compensation Committee member

Sang Yoon Lee	Sep. 13, 1942	Outside Director	1 year starting from March 21, 2006
		Board Steering Committee member
		Audit Committee member
		Compensation Committee member

Yoon Soo Yoon	Mar. 5, 1946	Outside Director	1 year starting from March 21, 2006
		Head of Compensation Committee
		Risk Management Committee member

Shee Yul Ryoo	Sep. 5, 1938	Outside Director	1 year starting from March 21, 2006
		Board Steering Committee member
		Compensation Committee member
		Head of Risk Management Committee

Byung Hun Park	Sep. 10, 1928	Outside Director	1 year starting from March 21, 2006
		Board Steering Committee member

Young Hoon Choi	Nov. 8, 1928	Outside Director	1 year starting from March 21, 2006

Si Jong Kim	Apr. 16, 1937	Outside Director	1 year starting from March 21, 2006
		Audit Committee member

Philippe Reynieix	Jun. 24, 1949	Outside Director	1 year starting from March 21, 2006
		Risk Management Committee member

Haeng Nam Chung	Mar. 15, 1941	Outside Director	1 year starting from March 21, 2006

Myoung Soo Choi	Aug. 5, 1957	Outside Director	1 year starting from March 21, 2006

For personal profiles of the outside directors, please refer to our current report on Form 6-K filed on February 24, 2006.

3) Executive Officers

In addition to the executive directors, we currently have the following executive officers:


Name	Date of Birth	Position	Taking Charge of
Jae Woo Lee	July 2, 1950	Managing Director (Chief Operating Officer)	General Affairs Team, Public Relations Team, and Human Resources Team

Byung Jae Cho	Jan. 6, 1951	Managing Director (Chief Financial Officer)	Finance Planning Team, Risk Management Team, and Investor Relations Team

Jin Won Suh	April 20, 1951	Managing Director (Chief Strategy Officer)	Strategic Planning Team, Future Strategy & Management Team, and Information & Technology Planning Team,

Jae Woon Yoon	July 22, 1951	Managing Director (Group Synergy Officer)	Joint Procurement Team, Synergy Management Team, and Audit & Compliance Team

Stock Options

(As of November 8, 2006)


		No. of		No. of Exercised		No. of Cancelled		No. of Exercisable
		Granted Options		Options		Options		Options
Guarantee		(A)		(B)		(C)		(D=A-B-C)
Granted in 2002	Management, Head of Department		864,576		244,511		—		620,065
Granted in 2003	Management, Head of Department		1,020,206		272,803		11,390		736,013
Granted in 2004	Management, Head of Department		1,258,923		82,900		15,200		1,160,823
Granted in 2005	Management, Head of Department, Outside Directors		2,695,200		—		70,500		2,624,700
Granted in 2006	Management, Head of Department, Outside Directors		3,296,200		—		3400		3,292,800
	Total		9,135,105		600,214		100,490		8,434,401

Employees

(As of September 30, 2006)

Average Payment per

Total Salaries and wages paid

person in 2006 3Q

Number of

Average length of

in 2006 3Q

(in mil. of Korean

Employees

Service

(in mil. of Korean Won)

Won)

Male

2 yrs 6mths

5,105

Female

2 yrs 9mths

650

Total

2 yrs 8mths

5,755

5. Activities of Board of Directors and sub-committees during 2006 3Q

Meetings of Board of Directors


Date		Agenda
Sept. 12, 2006	1.	Exclusion of Shinhan Bank’s Hong Kong subsidiary as a non-direct subsidiary
	-	Exclusion of Shinhan Bank’s Hong Kong subsidiary as a non-direct subsidiary, following its closing and transfer into Shinhan Bank’s branch	Approved

	2.	Issuance of Corporate Bond	Approved
	-	The 36^th and 37^thpublic issuance of Corporate Bonds (KRW 100 billion and KRW 500 billion)

	3.	Amendment of Risk Management Committee regulations	Approved
	-	Establishment of new article related to reporting items and changes in expressions related to resolution items etc

	4.	4^th round of guideline amendments related to the providing and using of individual credit information etc.	Approved
	-	Amendment of related articles due to the launching of the integrated Shinhan Bank and changes in names of subsidiaries etc.

	5.	Amendment of regulations concerning evaluation and remuneration	Approved
	-	Execution of cash-compensation system related to long-term results and retirement allowances system for non-management directors

	6.	Alterations in remuneration for managing directors	Approved
	-	Alterations in remuneration for managing directors, including short-term merit pay etc.

	7.	Cancellation of previously granted stock options	Approved
	-	3 persons, 5,700 shares

Meetings of Compensation Committee


Date	Agenda
Sept. 12, 2006	1. Establishment of PU(Performance Unit) system management regulations	Approved

Meetings of Risk Management Committee


Date		Agenda
Sept. 12, 2006		1. Reporting Item: The group’s capital adequacy ratio and risk limit management by risk type etc.

For reference to details of past Board of Directors and sub-committee meetings for year 2006, please refer to our current report on Form 6-K filed on August 21, 2006.

6. Market Price Information of our Common Shares and ADRs

Common Share Traded on the Korea Exchange

(in Korean Won or number of shares)


	May 2006		June 2006		July 2006		Aug. 2006		Sept. 2006		Oct. 2006
Price per share
High		49,500		45,000		47,000		47,100		44,000		44,100
Low		43,400		40,400		43,750		43,350		42,100		41,450
Trading Volume		28,343,860		24,274,622		19,759,297		27,184,347		25,860,937		24,500,981

American Depositary Shares traded on the New York Stock Exchange

Shinhan Financial Group listed its American Depositary Shares on the New York Stock Exchange on September 16, 2003.

(in US Dollars or number of shares)


	May 2006		June 2006		July 2006		Aug. 2006		Sept. 2006		Oct. 2006
Price per share
High		106.08		95.95		100.98		97.90		92.60		93.00
Low		89.03		81.15		90.51		89.89		88.95		86.56
Trading Volume		784,700		675,200		506,900		479,100		325,600		313,900

7. Related Party Transactions

Loans to Subsidiaries

(As of Sept. 30, 2006, in 100 millions of Korean Won)



												Beginning						Ending
		Origination				Funding			Lending			Balance						Balance
Borrower	Loan Type	date		Maturity date		Rate			Rate			Jan. 1 2006		Increase		Decrease		June 30, 2006
GMS Securities	Loans in KRW		2005-01-31		2010-07-31		4.59	%		5.25	%		700		—		—		700
Shinhan Bank	Privately Placed Bonds		2001-12-21		2008-03-21		7.12	%		7.42	%		500		—		500
Shinhan Card	Loans in KRW		2003-01-24		2006-01-24		5.19	%		5.50	%		500		—		500		—
Shinhan Card	Loans in KRW		2003-02-26		2006-02-26		4.99	%		5.29	%		2,000		—		2,000		—
Shinhan Card	Loans in KRW		2003-04-23		2009-04-23		5.47	%		6.28	%		1,000		—		—		1,000
Shinhan Card	Loans in KRW		2003-05-23		2006-05-23		5.29	%		5.59	%		500		—		500		—
Shinhan Card	Loans in KRW		2003-06-24		2006-06-24		5.43	%		5.73	%		1,500		—		1,500
Shinhan Card ⁴⁾	Loans in KRW		2003-10-24		2006-10-24		4.63	%		4.95	%		1,000		—		—		1,000
Shinhan Card	Loans in KRW		2005-03-18		2007-03-18		4.13	%		4.49	%		500		—		—		500
Shinhan Card	Loans in KRW		2005-03-18		2008-03-18		4.23	%		4.54	%		500		—		—		500
Shinhan Capital	Loans in KRW		2002-03-29		2007-04-04		7.47	%		8.12	%		200		—		—		200
Shinhan Capital	Loans in KRW		2002-07-29		2007-07-29		6.30	%		6.65	%		200		—		—		200
Shinhan Capital	Loans in KRW		2002-11-21		2007-11-21		5.88	%		6.18	%		200		—		—		200
Shinhan Capital	Loans in KRW		2002-12-16		2007-12-16		5.96	%		6.22	%		200		—		—		200
Shinhan Capital	Loans in KRW		2003-01-24		2006-01-24		5.19	%		5.54	%		200		—		200		—
Shinhan Capital	Loans in KRW		2003-05-23		2006-05-23		5.29	%		5.59	%		500		—		500
Shinhan Capital	Loans in KRW		2003-06-24		2008-06-24		5.69	%		5.95	%		300		—		—		300
Shinhan Capital	Loans in KRW		2003-07-24		2006-07-24		5.55	%		5.85	%		300		—		300		—
Shinhan Capital	Loans in KRW		2003-07-24		2008-07-24		5.87	%		6.13	%		200		—		—		200
Shinhan Capital	Loans in KRW		2004-03-24		2007-03-24		4.76	%		5.16	%		300		—		—		300
Shinhan Capital	Loans in KRW		2004-03-24		2009-03-24		5.11	%		5.93	%		200		—		—		200
Shinhan Capital	Loans in KRW		2004-06-25		2009-06-25		4.93	%		5.22	%		500		—		—		500
Shinhan Capital	Loans in KRW		2005-01-31		2008-01-31		4.21	%		4.58	%		300		—		—		300
Shinhan Capital	Loans in KRW		2005-03-18		2007-03-18		4.23	%		4.49	%		500		—		—		500
Shinhan Capital	Loans in KRW		2005-05-09		2008-05-09		3.99	%		4.33	%		500		—		—		500
Shinhan Capital	Loans in KRW		2005-12-16		2008-12-16		5.48	%		5.67	%		400		—		—		400
Jeju Bank ³⁾	Loans in KRW		2005-12-28		2011-01-28		5.74	%		6.43	%		200		—		200		—
Shinhan Capital	Loans in foreign currency		2003-12-30		2006-12-30	3M Libor +70bp			3M Libor +90bp				304		—		20		284
Shinhan Capital	Loans in foreign currency		2004-07-15		2007-06-15	3M Libor +70bp			3M Libor +90bp				405		—		27		378
Jeju Bank ^{1) 2)}	Privately Placed Bonds		2004-05-07		2007-03-30		6.26	%		—			31		—		31		—
Jeju Bank ²⁾	Privately Placed Bonds		2002-05-20		2008-01-20		7.25	%		8.14	%		200		—		200		—
Shinhan Card	Loans in KRW		2006-01-24		2009-01-24		5.24	%		5.41	%		—		500		—		500
Shinhan Capital	Loans in KRW		2006-01-24		2009-01-24		5.24	%		5.41	%		—		500		—		500
Shinhan Card	Loans in KRW		2006-02-27		2009-02-27		5.07	%		5.23	%		—		1,000		—		1,000
Shinhan Card	Loans in KRW		2006-04-24		2009-04-24		5.09	%		5.22	%		—		1,000		—		1,000


												Beginning						Ending
		Origination				Funding			Lending			Balance						Balance
Borrower	Loan Type	date		Maturity date		Rate			Rate			Jan. 1 2006		Increase		Decrease		June 30, 2006
GMS Securities	Loans in KRW		2006-07-31		2012-01-31		5.16	%		5.64	%		—		1,000		—		1,000
Shinhan Capital	Loans in KRW		2006-09-26		2011-09-26		4.91	%		4.99	%		—		500		—		500

Total													14,840		4,500		6,478		12,862

Note 1) Privately placed bonds, which were under complete ownership of Shinhan Bank when first issued in June 30, 2001, were acquired by SFG as of May 7, 2004.

Note 2) All privately placed bonds issued by Jeju Bank were redeemed on March 13, 2006.

Note 3) Loans were redeemed on July 3, 2006.

Note 4) Loans were redeemed on October 24, 2006.

Exhibit 99 Independent Accountant’s Review Report (Non Consolidated Financial Statements) of Shinhan Financial Group as of September 30, 2006.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.


	SHINHAN FINANCIAL GROUP CO., LTD.

	By	/s/ Byung Jae Cho
	Name: Byung Jae Cho Title: Chief Financial Officer

Date : November 21, 2006