Edgar Filing: SHINHAN FINANCIAL GROUP CO LTD

Form 6-K

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 August 2009

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.

orm 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 2009 1H Business Report

On August 14, 2009, Shinhan Financial Group (“SFG”) filed its 2009 1H Business Report (the “Business Report”) with the Financial Supervisory Service of the Republic of Korea (“Korea”) pursuant to the Financial Investment Services and Capital Market 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 Auditor
4. Directors, Executive Officers and Employees
5. Major Shareholder and Market Price Information of Our Common Shares and ADRs
6. Related Party Transactions
EX-99.1

Exhibit 99-1

Independent Accountant’s Review Report (Non-consolidated Financial Statements) of Shinhan Financial Group as of June 30, 2009

1. Introduction of the Group

Company History in 2008 and 2009

	§		March 2008 : JSC Shinhan Bank Kazakhstan, a subsidiary of Shinhan Bank, joins SFG as an indirect subsidiary

	§		April 2008 : SFG and Shinhan Bank obtain the Federal Reserve Bank’s approval to become Financial Holding Companies

	§		April 2008 : Shinhan Bank China Limited, a subsidiary of Shinhan Bank, joins SFG as an indirect subsidiary

	§		May 2008 : Shinhan AITAS, a fund administration and accounting subsidiary of Shinhan Bank, joins SFG as an indirect subsidiary

	§		June 2008 : Shinhan-KTF Mobile Card, a joint-venture company with KT Freetel, joins SFG as an indirect subsidiary

	§		August 2008 : Shinhan Private Equity Fund II joins SFG as an indirect subsidiary

	§		September 2008 : Shinhan Bank Canada joins SFG as an indirect subsidiary

	§		January 2009: Shinhan BNP Paribas Asset Management launched through the merger of Shinhan BNP Paribas ITMC and SH Asset Management

	§		June 2009 : SH&C separated from SFG after SFG consummates share transfers of SH&C

Change in Management

On March 17, 2009, the Board of Directors of Shinhan Financial Group appointed Mr. Sang Hoon Shin as the new President & CEO. Mr. Sang Hoon Shin was formerly President and CEO of Shinhan Bank. Mr. Shin also served as the Managing Director of Shinhan Financial Group in 2001 and as the Managing Director of Shinhan Bank in 1999.

Change in Capital Stock

The number of our common shares has increased by 78,000,000 shares on March 25, 2009 as a result of a rights offering. The subscription price for the new common shares was KRW 16,800 per share. The aggregate proceed from this offering was KRW 1,310,400 million prior to adjusting for the underwriting commissions and other offering expenses. Please refer to the 6-K filed at February 2, 2009 for more details regarding the rights offering.

Dividend for FY 2008

1) Dividend Amount for Common Stock: KRW 0

2) Dividend Amount for Preferred Stock: KRW 244,987 million

3) Total Dividend Amount: KRW 244,987 million

Principal Subsidiaries under Korean Law (as of June 30, 2009)

Direct Subsidiaries


Subsidiaries	Ownership by SFG
Shinhan Bank		100.0	%
Shinhan Card		100.0	%
SHC Management		100.0	%
Good Morning Shinhan Securities		100.0	%
Shinhan Life Insurance		100.0	%
Shinhan Capital		100.0	%
Shinhan BNP Paribas Asset Management ¹⁾		65.0	%
Jeju Bank²⁾		68.9	%
Shinhan Macquarie Financial Advisory		51.0	%
Shinhan Credit Information		100.0	%
Shinhan Private Equity		100.0	%


1)		Shinhan BNP Paribas Asset Management launched on January 1, 2009.

2)		Jeju Bank is currently listed on the Korea Exchange.

Indirect subsidiaries held through direct subsidiaries


		Ownership by the
Direct Subsidiaries	Indirect Subsidiaries	Parent
Shinhan Bank	Shinhan Data System		100.00	%
	Shinhan Finance Ltd.(Hong Kong)¹⁾		100.00	%
	Shinhan Asia Limited		100.00	%
	Shinhan Bank America		100.00	%
	Shinhan Bank Europe GmbH		100.00	%
	Shinhan Vina Bank		50.00	%
	CHB Valuemeet 2001 year 1^st Securitization		50.00	%
	CHB Valuemeet 2001 year 2^nd Securitization		50.00	%
	CHB Valuemeet 2002 year 1^st Securitization		50.00	%
	Shinhan Khmer Bank Limited		80.1	%
	JSC Shinhan Bank Kazakhstan		100.00	%
	Shinhan Bank China Limited		100.00	%
	Shinhan AITAS		89.6	%
	Shinhan Bank Canada		100.00	%
Shinhan Card	Shinhan-KT Mobile Card		50.00	%
Good Morning	Good Morning Shinhan Securities Europe Ltd.		100.00	%
Shinhan Securities	Good Morning Shinhan Securities USA Inc.		100.00	%
	Good Morning Shinhan Securities Asia Ltd.		100.00	%
Shinhan Private Equity	Shinhan NPS Private Equity Fund 1^st		5.00	% ²⁾
	Shinhan Private Equity Fund II		2.17	%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.

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

3)		Shinhan Financial Group and its subsidiaries currently own 32.6% of Shinhan Private Equity Fund II.

Number of Shares


	Number of Shares
Types of Shares	As of December 31, 2008		As of June 30, 2009
Common Shares		396,199,587		474,199,587
Redeemable Preferred Shares		47,690,251		47,690,251
Redeemable Convertible Preferred Shares		14,721,000		14,721,000
Total		458,610,838		536,610,838

2. Business Results

Operation Results


(KRW billion)
	2009		2008		2007
	(Jan.1~Jun.30)		(Jan.1~Dec.31)		(Jan.1~Dec.31)
Operating income		841.8		3,032.2		3,737.4
Non-operating income		75.4		223.6		277.7
Non-operating expense		67.2		262.1		102.0
Earnings before income tax		850.0		2,993.7		3,913.1
Income taxes		296.5		968.5		549.0
Pre-acquisition income in subsidiaries		0.0		-0.4		874.1
Consolidated net income		568.9		2,025,6		2,490.0
Net income in majority interest		557.8		2,018.6		2,396.4
Net income in minority interest		11.2		7.0		93.6

Source and Use of Funds

Source of Funds


			2009							2008							2007
			(Jan.1~Jun.30)							(Jan.1~Dec.31)							(Jan.1~Dec.31)
			Average Balance			Interest		Interest		Average Balance			Interest		Interest		Average Balance			Interest		Interest
(In KRW million, %)			Ratio(%)			Paid		Rate(%)		Ratio(%)			Paid		Rate(%)		Ratio(%)			Paid		Rate(%)
Source	Fund in KRW	Deposits		1,112,346	41.78		18,736		3.40		958,347	38.71		39,116		4.08		876,195	40.78		26,967		3.08
		CD		126,546	4.75		3,756		5.99		157,372	6.36		9,600		6.1		149,773	6.97		8,076		5.39
		Borrowing		66,796	2.51		1,443		4.36		67,277	2.72		3,332		4.95		60,264	2.81		2,437		4.04
		Call Loan		13,508	0.51		129		1.93		21,912	0.89		1,043		4.76		19,148	0.89		1,130		5.90
		Debenture		400,302	15.04		11,092		5.59		418,532	16.91		24,970		5.97		369,104	17.18		18,850		5.11
		Others		88,999	3.34		1,652		3.74		76,243	3.08		4,259		5.59		57,816	2.69		3,519		6.09
		Subtotal		1,808,497	67.94		36,808		4.10		1,699,683	68.66		82,320		4.84		1,532,300	71.32		60,980		3.98
	Fund in Foreign Currency	Deposits		99,677	3.74		1,166		2.36		67,431	2.72		1,791		2.66		49,953	2.33		1,532		3.07
		Borrowing		87,997	3.31		1,218		2.79		97,945	3.96		3,083		3.15		67,179	3.13		2,408		3.58
		Call Loan		27,331	1.03		356		2.63		10,913	0.44		466		4.27		10,733	0.50		524		4.88
		Debenture		54,549	2.05		561		2.07		49,316	1.99		1,897		3.85		39,398	1.83		2,068		5.25
		Others		2,521	0.09		41		3.28		10,938	0.44		445		4.07		23,062	1.07		712		3.09
		Subtotal		272,075	10.22		3,342		2.48		236,543	9.56		7,682		3.25		190,324	8.86		7,243		3.81
	Interest bearing funding			2,080,572	78.16		40,150		3.89		1,936,226	78.22		90,002		4.65		1,722,624	80.18		68,224		3.96
	Others	Shareholder equity		189,851	7.13		—		0		181,847	7.35		—		0		174,937	8.14		—		0
		Loan loss reserve		16,003	0.60		—		0		15,707	0.63		—		0		11,147	0.52		—		0
		Others		375,655	14.11		—		0		341,710	13.80		—		0		239,699	11.16		—		0
	Non-interest bearing funding			581,509	21.84		—		0		539,264	21.78		—		0		425,783	19.82		—		0
Total Funding				2,662,081	100		40,150		3.04		2,475,490	100		90,002		3.64		2,148,408	100		68,224		3.18


1)		The “Average Balance” is the arithmetic mean of the ending balance of each quarter.

Use of Funds


			2009							2008							2007
			(Jan.1~Jun.30)							(Jan.1~Dec.31)							(Jan.1~Dec.31)
			Average Balance			Interest		Interest		Average Balance			Interest		Interest		Average Balance			Interest		Interest
(In KRW million, %)			Ratio(%)			Paid		Rate(%)		Ratio(%)			Paid		Rate(%)		Ratio(%)			Paid		Rate(%)
Use	Fund in KRW	Deposits		115,751	4.35		912		1.59		73,760	2.98		2,581		3.5		67,425	3.14		1,501		2.23
		Securities		474,816	17.84		10,338		4.39		425,433	17.19		20,497		4.82		389,806	18.14		17,014		4.36
		Loans		867,170	32.57		37,681		8.76		1,224,471	49.46		89,602		7.32		1,078,194	50.19		72,320		6.71
		(Household)		598,189	22.47		16,582		5.59		574,061	23.19		40,925		7.13		528,181	24.58		35,298		6.68
		(Corporate)		704,384	26.46		21,099		6.04		650,410	26.27		48,677		7.48		550,013	25.60		37,022		6.73
		Advances for customers		1,078	0.04		8		1.50		397	0.02		11		2.77		175	0.01		8		4.29
		Call Loan		16,554	0.62		158		1.92		10,667	0.43		496		4.65		8,609	0.40		442		5.13
		Debenture		28,978	1.09		781		5.43		32,457	1.31		2,041		6.29		41,847	1.95		2,567		6.13
		Credit Card Receivable		110,138	4.14		15,337		28.08		100,551	4.06		27,839		27.69		94,300	4.39		23,240		24.64
		(Card Loan)		24,563	0.92		1,866		15.32		29,681	1.20		5,351		18.03		31,215	1.45		5,338		17.10
		Others		67,760	2.55		2,191		6.52		65,796	2.66		4,715		7.17		72,038	3.35		4,986		6.92
		Loan loss reserve		-35,001	-1.31		0		0		-30,502	-1.23		0		0		-28,316	-1.32		0		0
		Subtotal		2,082,647	78.23		67,406		6.53		1,903,030	76.87		147,782		7.77		1,724,078	80.25		122,077		7.08
	Fund in Foreign Currency	Deposits		27,051	1.02		110		0.82		16,573	0.67		394		2.38		9,343	0.43		292		3.13
		Securities		23,555	0.88		314		2.69		20,117	0.81		891		4.43		17,486	0.81		727		4.16
		Loan		140,010	5.26		2,883		4.15		141,759	5.73		6,873		4.85		78,387	3.65		4,564		5.82
		Call loan		19,750	0.74		63		0.64		8,640	0.35		235		2.72		5,360	0.25		299		5.58
		Bills bought		31,037	1.17		963		6.26		39,621	1.60		1,791		4.52		35,803	1.67		1,901		5.31
		Others		4,215	0.16		90		4.31		5,493	0.22		466		8.48		68,846	3.20		1,282		1.86
		Loan loss reserve		-2,679	-0.10		0		0		-2,342	-0.09		0		0		-1,441	-0.07				0
		Subtotal		242,939	9.13		4,423		3.67		229,861	9.29		10,650		4.63		213,785	9.95		9,065		4.24
	Interest earning funding			2,325,586	87.36		71,829		6.23		2,132,890	86.16		158,432		7.43		1,937,864	90.20		131,142		11.32
	Others	Cash		21,948	0.82		0		0		23,746	0.96		0		0		27,901	1.30		0		0
		PP&E		23,923	0.90		0		0		24,194	0.98		0		0		75,437	3.51		0		0
		Others		290,624	10.92		0		0		294,660	11.90		0		0		107,205	4.99		0		0
	Non-interest earning funding			336,495	12.64		0		0		342,600	13.84		0		0		210,543	9.80		0		0
Total use of funds				2,662,081	100		71,829		5.44		2,475,490	100		158,432		6.4		2,148,408	100		131,142		6.1


1)		The “Average Balance” is the arithmetic mean of the ending balance of each quarter.

Other Financial Information

Financial information for 2009 1H contained in this section are provisional figures.

Group BIS Ratio


(KRW million)
	2009 1H			2008			2007
Aggregate Amount of Equity Capital (A)		23,131,432			18,746,446			15,945,940
Risk-Weighted Assets (B)		177,680,895			183,766,217			161,849,385
BIS Ratio (A/B) ¹⁾		13.02	%		10.20	%		9.85	%


1)		In accordance with the amendments in the Financial Holding Company Guidelines of the Financial Service Commission (“FSC”), the Group BIS Ratio, rather than the Requisite Capital Ratio, is used as an index for measuring capital adequacy, beginning FY2007.

Won Liquidity Ratio


(KRW million)
	2009 1H			2008			2007
Won Assets due within 3 months (A)		910,814			920,661			220,009
Won Liabilities due within 3 months (B)		588,314			690,397			209,888
Won Liquidity Ratio (A/B)		154.82	%		133.35	%		104.82	%

Liabilities to Equity Ratio


(KRW million)
	2009 1H			2008			2007
Liabilities (A)		6,842,678			8,307,683			7,349,727
Equity (B)		19,533,671			17,605,119			17,977,801
Liabilities to Equity Ratio (A/B)		35.03	%		47.19	%		40.88	%

Capital Adequacy Ratio and Other Ratios of Certain Subsidiaries

(1)

BIS Capital Adequacy Ratio (%) ¹⁾


	2009 1H		2008		2007
Shinhan Bank ²⁾		15.84		13.44		12.09


1)		The BIS Capital Adequacy Ratio is computed in accordance with the guidelines issued by the FSC for commercial banks. Under these guidelines, commercial banks are required to maintain a minimum capital adequacy ratio of 8%.

2)		2007 ratios for Shinhan Bank are based on Basel I. Basel II FIRB Approach was applied in calculating BIS for 2008 and 2009 1H.

(2)

Adjusted Equity Capital Ratio (%)


	2009 1H		2008		2007
Shinhan Card		24.95		20.32		25.31


*		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 FSC for credit


		card companies. Under these guidelines, Shinhan Card is required to maintain a minimum adjusted equity capital ratio of 8%.

(3)

Net Capital Ratio (%)


	Jun.30 2009		Mar.31 2009		Mar.31 2008
Good Morning Shinhan Securities		694.20		678.79		783.89


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

(4)

Solvency Margin Ratio (%)


	Jun.30 2009		Mar.31 2009		Mar.31 2008
Shinhan Life Insurance		212.12		208.60		222.74


*		Under the guidelines issued by the FSC, Shinhan Life Insurance is required to maintain a minimum solvency margin ratio of 100%.

Non- Performing Loans of Certain Subsidiaries ¹⁾

(1)

Non- Performing Loans


(KRW million)
	Jun. 30, 2009				Dec.31, 2008				Dec.31, 2007
	Balance of		NPL to total		Balance of		NPL to total		Balance of		NPL to total
	NPL		Loans (%)		NPL		Loans (%)		NPL		Loans (%)
Shinhan Bank		2,092,383		1.40		1,306,316		0.85		848,846		0.63
Shinhan Card ²⁾		413,763		3.53		339,101		2.91		448,866		3.71

Jun.30, 2009

Mar.31, 2009

Mar.31, 2008

Balance of

NPL to total

Balance of

NPL to total

Balance of

NPL to total

NPL

Loans (%)

NPL

Loans (%)

NPL

Loans (%)

GMSH Securities ²⁾

119,380

10.54

125,366

12.14

27,738

2.35


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

2)		Under the guidelines of the FSC, every securities brokerage company and 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 Good Morning Shinhan Securities, and Shinhan Card includes loans classified as “substandard,” “doubtful,” and “estimated loss.”

(2)

Loan Loss Allowances & Write-offs for the period


(KRW million)
			Jan. 1, 2009~		Jan. 1, 2008~		Jan. 1, 2007~
			Jun. 30, 2009		Dec. 31, 2008		Dec. 31, 2007
Shinhan Bank	Loan Loss Allowance	Domestic		3,486,824		2,945,910		2,317,075
		Overseas		60,023		81,927		76,175
		Total		3,546,847		3,027,837		2,393,250
	Write-offs			499,200		340,942		186,316
Shinhan Card	Loan Loss Allowance	Domestic		850,046		773,961		947,737
		Overseas		—		—		—
		Total		850,046		773,961		947,737
	Write-offs			268,808		609,033		430,535

			Apr. 1, 2009~		Apr. 1, 2008~		Apr. 1, 2007~
			Jun. 30, 2009		Mar. 31, 2009		Mar. 31, 2008
GMSH Securities	Loan Loss Allowance	Domestic		89,336		104,212		33,005
		Overseas		6,102		6,541		—
		Total		95,438		110,753		33,005
	Write-offs			-10,636		78,153		983

3. Independent Auditor

Audit Opinion for the last 3 years

2009 1H

2008 1H

FY 2008

FY 2007

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 mil.)	Details	Working hours
2009 1H	KPMG Samjong Accounting Corp.	355	Review/Audit of Financial Statements	2,250 hours
2008	KPMG Samjong Accounting Corp.	355	Review/Audit of Financial Statements	5,106 hours
2007	KPMG Samjong Accounting Corp.	341	Review/Audit of Financial Statements	4,599 hours
2007	KPMG Samjong Accounting Corp.	399	Review of Financial Statements related to accounting treatment of LG Card acquisition	2,755 hours

4. Directors, Executive Officers and Employees

Directors and Executive Officers

Executive Directors


Name	Date of Birth	Position	Service Term
Eung Chan Ra	Nov. 25, 1938	Chairman of BOD Board Steering Committee Chair	3 years starting from March 20, 2007
Sang Hoon Shin	Jul. 1, 1948	President & CEO	2 years starting from March 17, 2009

Non-Executive Directors

Currently, 13 non-executive directors are in office, 12 of which outside directors who are nominated by our Outside Director Recommendation Committee and appointed pursuant to the approval of general shareholders’ meeting on March 17, 2009.

Our non-executive directors are as follows:


		Outside
Name	Date of Birth	Director	Sub-Committees	Service Term
Baek Soon Lee	Oct. 8, 1952	X	—	3 years starting from March 17, 2009
Boo In Go	Dec. 25, 1941	O	—	1 year starting from March 17, 2009
Young Woo Kim	May 1, 1952	O	Audit Committee member	1 year starting from March 17, 2009
Yo Koo Kim	Mar. 23, 1950	O	—	1 year starting from March 17, 2009
Shee Yul Ryoo	Sept. 5, 1938	O	Board Steering Committee member Compensation Committee member	1 year starting from March 17, 2009
Ke Sup Yun	May 20, 1945	O	Risk Management Committee member Compensation Committee member	1 year starting from March 17, 2009
Jung Il Lee	Aug. 28, 1952	O	—	1 year starting from March 17, 2009
Sung Bin Chun	Jan. 21, 1953	O	Audit Committee Chair Board Steering Committee member Compensation Committee member	1 year starting from March 17, 2009
Kap Young Jeong	Aug. 22, 1951	O	Audit Committee member Board Steering Committee member Compensation Committee member	1 year starting from March 17, 2009
Haeng Nam Chung	Mar. 15, 1941	O	—	1 year starting from March 17, 2009
Bong Youn Cho	Mar. 9, 1948	O	Risk Management Committee chair Audit Committee member Compensation Committee member	1 year starting from March 17, 2009
Young Seok Choi	Jul. 2, 1929	O	Board Steering Committee member	1 year starting from March 17, 2009
Philippe Reynieix	Jun. 24, 1949	O	Risk Management Committee member	1 year starting from March 17, 2009

For personal profiles of the outside directors, please refer to our Form 6-K filed on February 19, 2009.

Chair of Compensation Committee will be elected in the near future.

Executive Officers

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


Name	Date of Birth	Position	In charge of
Buhmsoo Choi	Aug. 8, 1956	Deputy President and Chief Financial Officer	— Finance Management Team — Investor Relations Team — Strategic Planning Team — Global Business Strategy Team
Sung Ho Wi	Jun. 12, 1958	Deputy President	— General Affairs Team — Business Management Team — Public Relations Team
Chan Hee Jin	Jun. 10, 1955	Deputy President	— Synergy Management Team — Information & Technology Planning Team — Audit & Compliance Team — Risk Management Team

Stock Options (as of June 30, 2009)


	No. of		No. of Exercised		No. of Cancelled		No. of Exercisable
	Granted Options		Options		Options		Options
	(A)		(B)		(C)		(D = A - B - C)		Exercise Price
Granted in 2003		1,020,416		1,008,816		11,600		—		11,800
Granted in 2004		1,258,923		1,243,723		15,200		—		21,595
Granted in 2005		2,620,331		385,773		251,300		1,983,258		28,006
Granted in 2006		3,206,173		—		480,300		2,725,873		38,829
Granted in 2007		1,301,050		—		148,700		1,152,350		54,560
Granted in 2008		808,700		—		109,690		699,010		49,053
Granted in 2009		614,735		—		614,735		—		23,405
Total		10,830,328		2,638,312		1,631,525		6,560,491		—


Note)		The weighted-average exercise price of outstanding exercisable options as of June 30, 2009 is KRW 39,409.

Employees

(As of Jun. 30, 2009)

Total Salaries and wages

Average Payment

Number of

paid in 1H 2009

per person

Employees

Average length of Service

(KRW million)

Total

3 yrs 3 mths

4,028

41.5

5. Major Shareholders and Market Price Information of our Common Shares and ADRs

Major Shareholders¹⁾ of Shinhan Financial Group as of Jun. 30, 2009


Name	No. of Common Shares owned		Ownership%
BNP Paribas Group²⁾		38,574,239		8.13
Korea Nat’l Pension Fund ³⁾		27,325,400		5.76
Total		65,899,639		13.89


1)		Shareholders who own beneficial ownership of 5% or more.

2)		During the month of August, 2009, BNP Paribas Luxemburg, an affiliate of BNP Paribas Group, announced it has sold 4,178,510 of common shares through a series of public filing. As a result, BNP Paribas Group holds 34,395,729 or 7.25% of our common shares as of August 14, 2009.

3)		Based on the public filing submitted by the Korea National Pension Fund on June 5, 2009 to report change of beneficial ownership of 5% or more. Number of common shares owned is as of May 18, 2009.

Common Share Traded on the Korea Exchange


(KRW, number of shares)
		Jan. 2009		Feb. 2009		Mar. 2009		Apr. 2009		May 2009		Jun. 2009
Price per share	High		32,950		29,700		27,700		31,700		34,000		32,650
	Low		25,500		21,250		20,500		25,750		30,300		29,250
	Avg.		29,603		25,838		24,016		29,191		31,939		30,868
Trading Volume			65,154,136		86,825,512		114,074,594		97,338,743		94,042,303		59,576,805
Highest Daily Trading Volume			5,207,842		7,133,276		9,482,933		9,373,677		13,492,539		4,281,045
Lowest Daily Trading Volume			1,620,498		2,336,662		2,689,026		2,254,216		2,382,288		1,672,469

American Depositary Shares traded on the New York Stock Exchange


(USD, number of shares)
		Jan. 2009		Feb. 2009		Mar. 2009		Apr. 2009		May 2009		Jun. 2009
Price per share	High		50.34		43.62		41.46		49.35		56.66		53.99
	Low		36.82		28.00		26.25		38.24		48.06		46.81
	Avg.		43.04		35.93		33.17		43.87		51.71		49.08
Trading Volume			2,583,218		2,805,315		4,766,767		3,491,465		2,819,257		1,910,529
Highest Daily Trading Volume			286,052		304,636		347,113		393,039		247,599		181,514
Lowest Daily Trading Volume			57,173		76,461		122,175		85,018		67,028		37,024


*1 ADR		= 2 Common Shares

6. Related Party Transactions

Loans to Subsidiaries


(KRW billion)
		Origination		Maturity		Funding			Lending			Beginning						Ending
Subsidiary	Loan Type	Date		Date		Rate			Rate			Balance		Increase		Decrease		Balance
Shinhan Card	Loan in KRW		2003-04-23		2009-04-23		5.47	%		5.92	%		100		—		100		—
Shinhan Capital	Loan in KRW		2004-03-24		2009-03-24		5.11	%		5.93	%		20		—		20		—
Shinhan Capital	Loan in KRW		2004-06-25		2009-06-25		4.93	%		5.22	%		50		—		50		—
GMSH Securities	Loan in KRW		2005-01-31		2010-07-31		4.59	%		5.25	%		70		—		—		70
Shinhan Card	Loan in KRW		2006-01-24		2009-01-24		5.24	%		5.41	%		50		—		50		—
Shinhan Capital	Loan in KRW		2006-01-24		2009-01-24		5.24	%		5.41	%		50		—		50		—
Shinhan Card	Loan in KRW		2006-02-27		2009-02-27		5.07	%		5.23	%		30		—		30		—
Shinhan Capital	Loan in KRW		2006-02-27		2009-02-27		5.07	%		5.23	%		70		—		70		—
Shinhan Capital	Loan in KRW		2006-04-24		2009-04-24		5.09	%		5.22	%		100		—		100		—
GMSH Securities	Loan in KRW		2006-07-31		2012-01-31		5.16	%		5.64	%		100		—		—		100
Shinhan Capital	Loan in KRW		2006-09-26		2011-09-26		4.91	%		4.99	%		50		—		—		50
Shinhan Capital	Loan in KRW		2007-03-23		2012-03-23		5.28	%		5.48	%		50		—		—		50
Shinhan Capital	Loan in KRW		2007-04-13		2010-04-13		5.24	%		5.38	%		50		—		—		50
Shinhan Capital	Loan in KRW		2007-06-08		2012-06-08		5.54	%		5.95	%		50		—		—		50
Shinhan Capital	Loan in KRW		2007-09-27		2010-09-27		5.91	%		6.05	%		100		—		—		100
Shinhan Capital	Loan in KRW		2007-11-27		2010-11-27		6.24	%		6.37	%		50		—		—		50
Shinhan Card	Loan in KRW		2007-11-27		2012-11-27		6.33	%		6.41	%		100		—		—		100
Shinhan Capital	Loan in KRW		2007-12-18		2010-12-18		6.69	%		6.83	%		50		—		—		50
Shinhan Card	Loan in KRW		2007-12-18		2012-12-18		6.78	%		6.86	%		50		—		—		50
Shinhan Card	Loan in KRW		2008-01-23		2011-01-23		6.46	%		6.60	%		100		—		100		—
Shinhan Capital	Loan in KRW		2008-01-23		2011-01-23		6.46	%		6.60	%		50		—		—		50
Shinhan Capital	Loan in KRW		2008-01-23		2013-01-23		6.51	%		6.60	%		50		—		—		50
Shinhan Card	Loan in KRW		2008-02-21		2011-02-21		5.51	%		5.66	%		150		—		—		150
Shinhan Card	Loan in KRW		2008-03-12		2011-03-12		5.71	%		5.84	%		200		—		—		200
Shinhan Capital	Loan in KRW		2008-03-12		2011-03-12		5.71	%		5.84	%		50		—		—		50
Shinhan Card	Loan in KRW		2008-06-27		2011-06-27		6.41	%		6.53	%		200		—		—		200
Shinhan PE	Loan in KRW		2008-06-27		2009-06-26		5.98	%		6.18	%		5		—		5		—
Shinhan Card	Loan in KRW		2008-07-31		2011-07-31		6.76	%		6.90	%		100		—		—		100
Shinhan Capital	Loan in KRW		2008-07-31		2011-07-31		6.76	%		6.90	%		50		—		—		50
Shinhan PE	Loan in KRW		2008-08-13		2009-08-13		6.65	%		6.85	%		5		—		—		5
Shinhan Card	Loan in KRW		2008-12-11		2011-12-11		8.01	%		8.12	%		100		—		—		100
Shinhan Capital	Loan in KRW		2008-12-11		2011-12-11		8.01	%		8.12	%		30		—		—		30
Shinhan Capital	Loan in KRW		2008-12-18		2009-11-11		8.13	%		8.20	%		120		—		—		120
SH&C	Loan in KRW		2008-12-26		2015-12-26		—			9.00	%		10		—		10		—
Shinhan Capital	Loan in KRW		2009-01-06		2010-01-05		6.53	%		6.63	%		—		50		—		50
Total	—		—		—		—			—			2,410		50		585		1,875

Exhibit 99-1

Independent Accountant’s Review Report (Non-consolidated Financial Statements) of Shinhan Financial Group as of June 30, 2009

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/ Buhmsoo Choi
	Name: Buhmsoo Choi
	Title: Chief Financial Officer

Date : August 14, 2009