Edgar Filing: SHINHAN FINANCIAL GROUP CO LTD

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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 March 2010

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 FY 2009 Business Report

On March 31, 2010, Shinhan Financial Group (“SFG”) filed its 2009 FY 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			3
2. Business Results			5
3. Independent Auditor			15
4. Directors, Executive Officers and Employees			15
5. Major Shareholder and Market Price Information of Our Common Shares and ADRs			17
6. Related Party Transactions			19

Exhibit 99.1
Exhibit 99.2

Exhibit 99-1

Independent Accountant’s Audit Report (Non-consolidated Financial Statements) of Shinhan Financial Group as of Dec. 31, 2009

Exhibit 99-2

Independent Accountant’s Audit Report (Consolidated Financial Statements) of Shinhan Financial Group as of Dec. 31, 2009

1. Introduction of the Group

Company History in 2008 through 2010

	•		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 consummated share transfers of SH&C

	•		Aug. 2009 : Corporate name of Good Morning- Shinhan Securities changed (Shinhan Investment)

	•		Sep. 2009 : SBJ became an indirect subsidiary of SFG

	•		Oct. 2009 : Shinhan Vietnam Bank became an indirect subsidiary of SFG

	•		Nov. 2009 : Liquidated Shinhan Finance Ltd. , an indirect subsidiary of SFG

	•		Dec. 2009 : Shinhan Capital Petra PEF became an indirect subsidiary of SFG

	•		Jan. 2010 : Shinhan Data System became a subsidiary of SFG

Change in Management

On March 24, 2010 the Board of Directors of Shinhan Financial Group appointed Mr. Eung Chan Ra as the Chairman of the Group and Ms. Sung Bin Chun as the Chairman of the Board of Directors.

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 our Form filed on February 2, 2009 for more details regarding the rights offering.

Dividend for FY 2009

1) Dividend Amount for Common Stock: KRW 189,680 million

2) Dividend Amount for Preferred Stock: KRW 238,180 million

3) Total Dividend Amount: KRW 427,860 million

Principal Subsidiaries under Korean Law (as of March 31, 2010)

Direct Subsidiaries


Subsidiaries	Ownership by SFG
Shinhan Bank		100.0	%
Shinhan Card		100.0	%
Shinhan Investment Corp.		100.0	%
Shinhan Life Insurance		100.0	%
Shinhan Capital		100.0	%
Jeju Bank¹⁾		68.9	%
Shinhan BNP Paribas Asset Management²⁾		65.0	%
Shinhan Data System		100.0	%
Shinhan Credit Information		100.0	%
Shinhan Private Equity		100.0	%
Shinhan Macquaire Financial Advisory		51.0	%
SHC Management		100.0	%


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

2)		In January 2009, SH Asset Management and Shinhan BNP Paribas ITMC merged to form Shinhan BNP Paribas Asset Management.

3)		In January 2010, Shinhan Data System, formerly a subsidiary of Shinhan Bank became a direct subsidiary of the Group.

Indirect subsidiaries held through direct subsidiaries


		Ownership by the
Direct Subsidiaries	Indirect Subsidiaries	Parent
Shinhan Bank	Shinhan Asia Limited		100.00	%
	Shinhan Bank America		100.00	%
	Shinhan Bank Europe		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	%
	Shinhan Bank Kazakhstan		100.00	%
	Shinhan Bank China Limited		100.00	%
	Shinhan AITAS		89.6	%
	Shinhan Bank Canada		100.00	%
	Shinhan Bank Japan		100.00	%
	Shinhan Vietnam Bank		100.00	%


		Ownership by the
Direct Subsidiaries	Indirect Subsidiaries	Parent
Shinhan Card	Shinhan-KT Mobile Card		50.00	%

Shinhan Investment Corporation	Shinhan Investment Corporation Europe Ltd.		100.00	%
	Shinhan Investment Corporation USA Inc.		100.00	%
	Shinhan Investment Corporation Asia Ltd.		100.00	%

Shinhan Private Equity	Shinhan NPS Private Equity Fund 1^st		5.00	%¹⁾
	Shinhan Private Equity Fund II		2.17	%²⁾

Shinhan Capital	PETRA PEF		23.8	%


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

2)		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 Dec. 31, 2008		As of Dec. 31, 2009
Common Shares		396,199,587		474,199,587
Redeemable Preferred Shares		47,690,251		38,373,459
Redeemable Convertible Preferred Shares		14,721,000		14,721,000
Total		458,610,838		527,294,046

2. Business Results

Operation Results

(KRW billion)


	2009		2008		2007
	(Jan.1~Dec.31)		(Jan.1~Dec.31)		(Jan.1~Dec.31)
Operating income		2,097.9		3,039.3		3,737.4
Non-operating income		126.2		223.6		277.7
Non-operating expense		244.7		261.9		102.0
Earnings before income tax		1,979.4		3,001.0		3,913.1
Income taxes		666.7		971.2		549.0
Pre-acquisition income in subsidiaries		0.0		(0.4)		874.1
Consolidated net income		1,328.2		2,025,7		2,490.0
Net income in majority interest		1,305.3		2,018.7		2,396.4
Net income in minority interest		22.9		7.0		93.6


F		Some of the totals may not sum due to rounding.

Source and Use of Funds

Source of Funds


	2009							2008							2007
	(Jan.1~Dec.31)							(Jan.1~Dec.31)							(Jan.1~Dec.31)
	Average Balance			Interest		Interest		Average Balance			Interest		Interest		Average Balance			Interest		Interest
(In KRW hundred million, %)	Ratio (%)			Paid		Rate (%)		Ratio (%)			Paid		Rate (%)		Ratio (%)			Paid		Rate (%)
Source
Fund in KRW
Deposits		1,176,491	45.05		36,435		3.10		958,347	38.71		39,116		4.08		876,195	40.78		26,967		3.08
CD		114,626	4.39		6,447		5.62		157,372	6.36		9,600		6.10		149,773	6.97		8,076		5.39
Borrowing		74,090	2.84		2,519		3.40		67,277	2.72		3,332		4.95		60,264	2.81		2,437		4.04
Call Loan		13,284	0.51		333		2.51		21,912	0.89		1,043		4.76		19,148	0.89		1,130		5.90
Debenture		382,416	14.64		20,840		5.45		418,532	16.91		24,970		5.97		369,104	17.18		18,850		5.11
Others		64,611	2.47		2,488		3.85		76,243	3.08		4,259		5.59		57,816	2.69		3,519		6.09
Subtotal		1,825,518	69.91		69,062		3.78		1,699,683	68.66		82,320		4.84		1,532,300	71.32		60,980		3.98
Fund in Foreign Currency
Deposits		105,507	4.04		2,187		2.07		67,431	2.72		1,791		2.66		49,953	2.33		1,532		3.07
Borrowing		77,761	2.98		1,833		2.36		97,945	3.96		3,083		3.15		67,179	3.13		2,408		3.58
Call Loan		11,884	0.46		367		3.09		10,913	0.44		466		4.27		10,733	0.50		524		4.88
Debenture		52,920	2.03		970		1.83		49,316	1.99		1,897		3.85		39,398	1.83		2,068		5.25
Others		2,014	0.08		57		2.83		10,938	0.44		445		4.07		23,062	1.07		712		3.09
Subtotal		250,086	9.58		5,414		2.16		236,543	9.56		7,682		3.25		190,324	8.86		7,243		3.81
Interest bearing funding		2,075,604	79.49		74,476		3.59		1,936,226	78.22		90,002		4.65		1,722,624	80.18		68,224		3.96
Others
Shareholder equity		197,197	7.55		0		0.00		181,847	7.35		0		0.00		174,937	8.14		0		0.00
Loan loss reserve		15,488	0.59		0		0.00		15,707	0.63		0		0.00		11,147	0.52		0		0.00
Others		322,978	12.37		0		0.00		341,710	13.80		0		0.00		239,699	11.16		0		0.00
Non-interest bearing funding		535,663	20.51		0		0.00		539,264	21.78		0		0.00		425,783	19.82		0		0.00
Total Funding		2,611,267	100.00		74,476		2.85		2,475,490	100.00		90,002		3.64		2,148,408	100.00		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 hundred million, %)	Ratio (%)					Paid		Rate (%)		Ratio (%)					Paid		Rate (%)		Ratio (%)					Paid		Rate (%)
Use
Fund in KRW
Deposits		110,557		4.23			1,748		1.58		73,760		2.98			2,581		3.50		67,425		3.14			1,501		2.23
Securities		487,858		18.68			20,444		4.19		425,433		17.19			20,497		4.82		389,806		18.14			17,014		4.36
Loans		605,442		23.19			32,955		5.44		1,224,471		49.46			89,602		7.32		1,078,194		50.19			72,320		6.71
(Household)		605,442		23.19			32,955		5.44		574,061		23.19			40,925		7.13		528,181		24.58			35,298		6.68
(Corporate)		703,441		26.94			41,846		5.95		650,410		26.27			48,677		7.48		550,013		25.60			37,022		6.73
Advances for customers		819		0.03			11		1.34		397		0.02			11		2.77		175		0.01			8		4.29
Call Loan		14,648		0.56			388		2.65		10,667		0.43			496		4.65		8,609		0.40			442		5.13
Debenture		28,255		1.08			1,649		5.84		32,457		1.31			2,041		6.29		41,847		1.95			2,567		6.13
Credit Card Receivable		118,236		4.53			31,488		26.63		100,551		4.06			27,839		27.69		94,300		4.39			23,240		24.64
(Card Loan)		25,301		0.97			3,926		15.52		29,681		1.20			5,351		18.03		31,215		1.45			5,338		17.10
Others		62,190		2.38			4,017		6.46		65,796		2.66			4,715		7.17		72,038		3.35			4,986		6.92
Loan loss reserve		(35,192	)	(1.35	)		0		0.00		(30,502	)	(1.23	)		0		0.00		(28,316	)	(1.32	)		0		0.00
Subtotal		2,096,254		80.28			134,546		6.42		1,903,030		76.87			147,782		7.77		1,724,078		80.25			122,077		7.08
Fund in Foreign Currency
Deposits		28,835		1.10			214		0.74		16,573		0.67			394		2.38		9,343		0.43			292		3.13
Securities		23,318		0.89			533		2.29		20,117		0.81			891		4.43		17,486		0.81			727		4.16
Loan		133,681		5.12			5,185		3.88		141,759		5.73			6,873		4.85		78,387		3.65			4,564		5.82
Call loan		11,541		0.44			94		0.81		8,640		0.35			235		2.72		5,360		0.25			299		5.58
Bills bought		30,760		1.18			1,521		4.94		39,621		1.60			1,791		4.52		35,803		1.67			1,901		5.31
Others		3,799		0.15			147		3.87		5,493		0.22			466		8.48		68,846		3.20			1,282		1.86
Loan loss reserve		(2,733	)	(0.10	)		0		0.00		(2,342	)	(0.09	)		0		0.00		(1,441	)	(0.07	)		0		0.00
Subtotal		229,201		8.78			7,694		3.36		229,861		9.29			10,650		4.63		213,785		9.95			9,065		4.24


	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 hundred million, %)	Ratio (%)			Paid		Rate (%)		Ratio (%)			Paid		Rate (%)		Ratio (%)			Paid		Rate (%)
Interest earning funding		2,325,455	89.05		142,240		6.12		2,132,890	86.16		158,432		7.43		1,937,864	90.20		131,142		11.32
Others
Cash		22,893	0.88		0		0.00		23,746	0.96		0		0.00		27,901	1.30		0		0.00
PP&E		23,700	0.91		0		0.00		24,194	0.98		0		0.00		75,437	3.51		0		0.00
Others		239,219	9.16		0		0.00		294,660	11.90		0		0.00		107,205	4.99		0		0.00
Non-interest earning funding		285,812	10.95		0		0.00		342,600	13.84		0		0.00		210,543	9.80		0		0.00
Total use of funds		2,611,267	100.00		142,240		5.45		2,475,490	100.00		158,432		6.40		2,148,408	100.00		131,142		6.10


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

Other Financial Information

Group BIS Ratio


(KRW million)

	2009			2008			2007
Aggregate Amount of Equity Capital (A)		22,572,130			18,723,461			15,815,434
Risk-Weighted Assets (B)		179,083,070			183,741,412			161,849,385
BIS Ratio (A/B) ¹⁾		12.60	%		10.19	%		9.77	%


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)

	2009¹⁾			2008			2007
Won Assets due within 3 months (A)		470,681			920,661			220,009
Won Liabilities due within 3 months (B)		376,446			690,397			209,888
Won Liquidity Ratio (A/B)		125.03	%		133.35	%		104.82	%


1)		2009 figures are assets and liabilities due within 1 month

Liabilities to Equity Ratio


(KRW million)

	2009			2008			2007
Liabilities (A)		6,392,346			8,307,683			7,349,727
Equity (B)		20,728,361			17,605,883			17,977,801
Liabilities to Equity Ratio (A/B)		30.84	%		47.19	%		40.88	%

Capital Adequacy Ratio and Other Ratios of Certain Subsidiaries


(1) BIS Capital Adequacy Ratio (%) ¹⁾

	2009		2008		2007
Shinhan Bank ²⁾		15.13		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.


(2) Adjusted Equity Capital Ratio (%)

	2009		2008		2007
Shinhan Card		26.73		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 (%)

Dec 31. 2009

Mar. 31 2009

Mar. 31 2008

Shinhan Investment

608.08

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, Shinhan Investment Corporation is required to maintain a minimum net capital ratio of 100%.

(4) Solvency Margin Ratio (%)

Dec 31. 2009

Mar. 31 2009

Mar. 31 2008

Shinhan Life Insurance

262.67

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)

Dec. 31, 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

1,158,985

0.77

1,306,316

0.85

848,846

0.63

Shinhan Card ²⁾

435,083

3.08

339,101

2.91

448,866

3.71


	Dec. 31, 2009					Mar.31, 2009					Mar.31, 2008
	Balance		NPL to total			Balance of		NPL to total			Balance of		NPL to total
	of NPL		Loans (%)			NPL		Loans (%)			NPL		Loans (%)

Shinhan Investment²⁾		253,995		19.45			125,366		12.14			27,738		2.35
Shinhan Life Insurance		38,800		1.53	%		40,369		1.69	%		23,224		1.10	%


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 Shinhan Investment, 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~
	Dec. 31, 2009		Dec. 31, 2008		Dec. 31, 2007
Shinhan Bank
Allowance for Possible Loan Losses		2,641,918		2,661,427		1,991,574
Allowance for doubtful accounts on Acceptance and Guarantees		105,629		113,669		59,926
Allowances for Losses Related to Unused Ceiling		267,859		249,442		341,750
Other Allowances		88,337		69,557		104,181
Allowance for Valuation of Bonds		7,609		8,152		9,616
Total		2,843,493		2,852,805		2,165,297
Write-offs		1,006,941		340,942		186,316
Shinhan Card
Allowance for Possible Loan Losses		793,469		773,960		947,736
Allowance for reward on credit card use		273,233		246,429		212,775
Allowances for Losses Related to Unused Ceiling		488,559		485,738		455,639
Other Allowances		12,619		22,325		15,385
Total		1,567,880		1,528,452		1,631,535
Write-offs		469,087		603,883		430,535


	Apr. 1, 2009~		Apr. 1, 2008~		Apr. 1, 2007~
	Dec 31, 2009		Mar. 31, 2009		Mar. 31, 2008
Shinhan Investment
Allowance for Possible Loan Losses		182,288		110,753		33,005
Other Allowances		21,942		—		—
Total		204,230		110,753		33,005
Write-offs		4,682		502		2,584
Shinhan Life Insurance
Allowance for Possible Loan Losses		37.944		31.589		22.805
Total		37.944		31.589		22.805
Write-offs		4.540		1.330		860

Twenty Largest Exposures by Borrower


											(KRW billion)
			Loans in						Guarantees
As of Dec. 31, 2009			Foreign		Equity				and		Total
consolidated basis	Loans in Won		Currency		Securities		Debt Securities		Acceptances		Exposures
Ministry of Strategy & Finance		—		—		—		11,542.0		—		11,542.0
Bank of Korea		300.0		—		—		5,333.7		—		5,633.7
Korea Deposit Insurance Corporation		—		—		—		2,550.7		—		2,550.7
Industrial Bank of Korea		142.1		14.2		0.0		1,724.0		—		1,880.4
Korea Development Bank		7.8		—		18.3		1,606.6		—		1,632.7
Hyundai Samho Heavy Industries Co., Ltd.		19.4		10.6		—		—		1,496.2		1,526.2
Hyundai Heavy Industries Co., Ltd.		3.1		17.0		24.1		10.0		1,392.1		1,446.4
POSCO		14.8		17.2		1,240.5		61.6		97.5		1,431.5
Kookmin Bank		28.6		—		21.3		1,239.1		—		1,289.0
I-CLOVER CO., LTD		675.7		—		—		582.8		0.1		1,258.6
Hana Bank		4.3		132.3		—		1,012.5		—		1,149.1
Samsung Heavy Industries Co., LTd.		100.0		39.7		1.1		—		935.0		1,075.8
Woori Bank		14.5		—		—		1,052.4		—		1,066.9
Hynix Semiconductor		37.5		359.2		591.8		0.7		64.0		1,053.2
Hyundai Mipo Dockyard Co., Ltd		—		—		1.5		—		1,002.4		1,003.9
National Agricultural Cooperative Federation		4.0		—		4.1		968.2		5.4		981.7
STX Offshore & Shipbuilding Co., Ltd		20.0		14.1		0.0		—		894.5		928.7
SH Corporation		780.0		—		—		75.9		—		855.9
SK Energy		108.3		127.0		3.8		16.1		511.4		766.6
Songdo Cosmopolitan City Development Inc.		713.5		—		—		—		—		713.5
Total		2,973.7		731.3		1,906.4		27,776.5		6,398.7		39,786.6

Exposure to Main Debtor Groups


											(KRW billion)
			Loans in						Guarantees
As of Dec. 31, 2009			Foreign		Equity		Debt		and		Total
consolidated basis	Loans in Won		Currency		Securities		Securities		Acceptances		Exposures
Hyundai Heavy Industries		22.5		27.7		3.3		10.0		3,890.7		3,954.2
Samsung		615.1		912.8		637.6		234.8		1,279.1		3,679.5
Hyundai Motors		514.7		890.4		39.7		288.1		340.9		2,073.8
SK		508.2		165.6		323.8		123.1		672.0		1,792.8
POSCO		66.1		34.5		1,241.6		78.4		126.9		1,547.4
STX		81.5		121.7		32.2		—		941.6		1,176.9
Hynix		37.5		359.2		588.0		—		64.0		1,048.7
LG		107.9		455.4		8.7		185.4		165.5		923.0
LS		146.5		219.1		1.8		142.6		124.3		634.3
Lotte		215.9		56.1		17.4		174.2		87.9		551.5
Total		2,316.0		3,242.5		2,894.1		1,236.6		7,692.9		17,382.1

Loan Concentration by Industry


													(KRW million)
					Loans in Foreign
	Loans in Won				Currency				Others				Total Exposures
As of Dec. 31, 2009			Weight				Weight				Weight				Weight
consolidated basis	Amount		(%)		Amount		(%)		Amount		(%)		Amount		(%)
Manufacturing		19,576,255		14.77		3,313,740		34.58		7,074,414		24.74		29,964,409		17.55
Retail and wholesale		11,293,599		8.52		711,116		7.42		1,330,166		4.65		13,334,881		7.81
Real Estate, leasing and service		16,858,445		12.72		1,248,396		13.03		192,416		0.67		18,299,257		10.72
Construction		5,857,791		4.42		40,854		0.43		774,970		2.71		6,673,615		3.91
Hotel and leisure		3,627,311		2.74		239,009		2.49		108,925		0.38		3,975,245		2.33
Finance and insurance		4,241,347		3.2		444,094		4.63		1,434,339		5.02		6,119,780		3.58
Others		9,210,576		6.95		3,446,620		35.96		2,154,169		7.53		14,811,365		8.68
Consumers		61,886,997		46.69		140,097		1.46		15,522,851		54.29		77,549,945		45.42
Totals		132,552,321		100		9,583,926		100		28,592,250		100		170,728,497		100

Top Twenty Non-Performing Loans

(KRW billion)


Borrower	Industry	Gross Principal Outstanding		Allowance for Loan Losses
A	Real estate, leasing and service		71.4		46.9
B	Construction		54.0		40.5
C	Real estate, leasing and service		19.8		13.8
D	Construction		18.5		3.7
E	Manufacturing		17.8		4.2
F	Real estate, leasing and service		12.9		9.7
G	Transportation		11.3		2.9
H	Other service		9.8		2.0
I	Other service		7.6		1.0
J	Manufacturing		7.2		2.3
K	Real estate, leasing and service		7.1		1.6
L	Other service		6.9		1.6
M	Other service		6.5		1.3
N	Manufacturing		5.9		1.3
O	Other service		5.9		0.9
P	Real estate, leasing and service		5.5		5.5
Q	Manufacturing		5.5		0.8
R	Construction		5.3		5.3
S	Real estate, leasing and service		5.3		1.1
T	Real estate, leasing and service		5.0		0.2
	Total		289.3		146.6

F Consolidated basis as of December 31, 2009

3. Independent Auditor

Audit Opinion for the last 3 years


	FY 2009	FY 2008	FY 2007
Audit Opinion	Unqualified	Unqualified	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.


		Payment			Working
Year	Auditor	(KRW mil.)		Details	hours
2009	KPMG Samjong Accounting Corp.		355	Review/Audit of Financial Statements	4,595 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
	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

1) Executive Directors


Name	Date of Birth	Position	Service Term
Eung Chan Ra	Nov. 25, 1938	Chairman of Shinhan Financial Group Board Steering Committee Chair	3 years starting from March 24, 2010

Sang Hoon Shin	Jul. 1, 1948	President & CEO	2 years starting from March 17, 2009

2) Non-Executive Directors

Currently, 10 non-executive directors are in office, 8 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 24, 2010.

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


		Outside
Name	Date of Birth	Director	Sub-Committees	Service Term
Shee Yul Ryoo	Sept. 5, 1938	X	Risk Management Committee chair Board Steering Committee member Compensation Committee member	1 year starting from March 24, 2010

Byung-il Kim	Sep. 1, 1945	O	Compensation Committee chair Board Steering Committee member	1 year starting from March 24, 2010

Yo Koo Kim	Mar. 23, 1950	O	Audit Committee member	1 year starting from March 24, 2010

Hui Mook Kim	Aug. 17, 1957	O	—	1 year starting from March 24, 2010

Ke Sup Yun	May 20, 1945	O	Audit Committee chair Risk Management Committee member Compensation Committee member	1 year starting from March 24, 2010

Sung Bin Chun	Jan. 21, 1953	O	Chairman of Board of Directors Board Steering Committee member Audit Committee member	1 year starting from March 24, 2010

Haeng Nam Chung	Mar. 15, 1941	O	Board Steering Committee member	1 year starting from March 24, 2010

Yoji Hirakawa	Feb. 13, 1953	O	—	1 year starting from March 24, 2010

Philippe Aguignier	Sep. 26, 1957	O	Risk Management Committee member	1 year starting from March 24, 2010

For personal profiles of the outside directors, please refer to our Form 6-K filed on February 26, 2010.

3) 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 & Chief Financial Officer	- Finance Management Team - Investor Relations Team - Strategic Planning Team - Global Business Strategy Team - Shinhan FSB Research Institute

Sung Ho Wi	Jun. 12, 1958	Deputy President	- General Affairs Team - Business Management Team - Public Relations Team - CSR & Culture Management Team

Chan Hee Jin	Jun. 10, 1955	Deputy President	- Synergy Management Team - Information & Technology Planning Team - Audit Team

Hyo IL Lee	Sep. 26, 1959	Managing Director	- Synergy Management Team

Yee Yong Jo	Feb. 13, 1957	Managing Director	- Compliance Team

Sam Yong Lee	June 11, 1953	Managing Director	- Risk Management Team

Stock Options (as of Dec 31, 2009)


			No. of Exercised		No. of Cancelled		No. of Exercisable
	No. of		Options		Options		Options
	Granted 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		601,623		251,300		1,767,408		28,006
Granted in 2006		3,206,173		79,584		480,300		2,646,289		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		2,933,746		1,631,525		6,265,057		—

Note)

The weighted-average exercise price of outstanding exercisable options as of Dec. 31, 2009 is KRW 39,810.

Employees (as of Dec 31, 2009)

Total Salaries and

Average Payment

wages paid in 2009

per person

Number of Employees

Average length of Service

(KRW million)

Total

135

2 yrs 3 mths

8,504

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

Major Shareholders¹⁾ of Shinhan Financial Group as of Dec. 31, 2009


Name	No. of Common Shares owned		Ownership%
BNP Paribas Group²⁾		30,106,276		6.35

Total		30,106,276		6.35


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

2)		During the months of August and September of 2009, BNP Paribas Luxemburg, an affiliate of BNP Paribas Group, announced it has sold 8,467,963 of common shares through a series of public filing. As a result, BNP Paribas Group holds 30,106,276 or 6.35% of our common shares as of Dec. 31, 2009.

Common Share Traded on the Korea Exchange


(KRW, number of shares)

	July 2009		Aug. 2009		Sep. 2009		Oct. 2009		Nov. 2009		Dec. 2009
Price per share
High		41,600		42,500		48,950		49,000		49,550		47,350
Low		32,900		38,800		42,100		44,500		44,150		43,200
Avg.		35,963		41,019		46,061		47,314		47,164		45,562
Trading Volume		67,685,036		53,817,978		60,030,877		42,692,228		33,367,895		39,876,374
Highest Daily Trading Volume		5,588,808		4,298,230		4,444,317		3,628,069		3,764,932		4,463,172
Lowest Daily Trading Volume		1,542,585		1,067,417		1,194,900		1,126,835		821,886		982,116

American Depositary Shares traded on the New York Stock Exchange


(USD, number of shares)

	July 2009		Aug. 2009		Sep. 2009		Oct. 2009		Nov. 2009		Dec. 2009
Price per share
High		67.28		69.96		82.87		85.20		86.42		81.83
Low		50.56		60.92		65.14		75.65		76.50		74.28
Avg.		57.52		66.53		76.21		80.60		81.86		78.01
Trading Volume		2,273,916		1,387,528		1,814,680		2,159,261		1,620,825		1,509,390
Highest Daily Trading Volume		277,872		137,350		162,484		251,769		143,045		141,197
Lowest Daily Trading Volume		36,278		30,791		27,895		39,650		40,060		32,140


*		1 ADR = 2 Common Shares

6. Related Party Transactions


Loans to Subsidiaries															(KRW billion)

		Origination		Maturity					Lending			Beginning						Ending
Subsidiary	Loan Type	Date		Date		Funding 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		—
Shinhan Investment	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		—
Shinhan Investment	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		2009-09-03		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		2010-08-19		6.53	%		6.63	%		—		50		50		—
Shinhan PE	Loan in KRW		2009-08-13		2010-08-13		3.93	%		3.99	%		—		5		—		5
Total	—		—		—		—			—			2,410		55		890		1,575

Exhibit 99-1

Independent Accountant’s Audit Report (Non-consolidated Financial Statements) of Shinhan Financial Group as of Dec. 31, 2009

Exhibit 99-2

Independent Accountant’s Audit Report (Consolidated Financial Statements) of Shinhan Financial Group as of Dec. 31, 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 : March 31, 2010