UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
Pursuant to Rule 13a-16 or 15d-16
Under the Securities Exchange Act of 1934
For the Month of August 2023
SHINHAN FINANCIAL GROUP CO., LTD.
(Translation of registrant's name into English)
20, Sejong-daero 9-gil, Jung-gu, Seoul 04513, 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 √ Form 40-F
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): _______
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): _______
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 No___√___
If "Yes" is marked, indicate below the file number assigned to the
registrant in connection with Rule 12g3-2(b): 82- n/a .
1
EXHIBIT INDEX
Exhibit No. |
|
Description |
99.1 |
|
Shinhan Financial Group Review Report for the 2Q of 2023 (Consolidated) |
99.2 |
|
Shinhan Financial Group Review Report for the 2Q of 2023 (Seperate) |
2
Summary of 1H 2023 Business Report
On August 14, 2023, Shinhan Financial Group (“SFG”) filed its 1H 2023 Business Report (the “Business Report”) with the Financial Services Commission of Korea and the Korea Exchange 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 Korean International Financial Reporting Standards.
Table of Contents
1. Introduction of the Group
2. Business Results
3. Other Financial Information
4. Independent Auditor
5. Corporate Governance
6. Major Shareholders and Market Price Information of our Common Shares and ADRs
7. Directors, Executive Officers and Employees
8. Related Party Transactions
9. Material Information after the reporting period
3
1. Introduction of the Group
Company History (from Jan. 2010 through the reporting date)
4
5
Principal(Direct) Subsidiaries under Korean Law (as of June 30, 2023)
Subsidiaries |
|
Ownership by SFG |
Shinhan Bank |
|
100.0% |
Shinhan Card |
|
100.0% |
Shinhan Securities |
|
100.0% |
Shinhan Life Insurance 1) |
|
100.0% |
Shinhan Capital |
|
100.0% |
Shinhan Asset Management 2) |
|
100.0% |
Jeju Bank 3) |
|
75.3% |
Shinhan Savings Bank 4) |
|
100.0% |
Shinhan Asset Trust 5) |
|
100.0% |
Shinhan DS |
|
100.0% |
Shinhan Fund Partners 6) |
|
99.8% |
Shinhan REITs Management |
|
100.0% |
Shinhan AI |
|
100.0% |
Shinhan Venture Investrment 7) |
|
100.0% |
Shinhan EZ General Insurance 8) |
|
85.1% |
SHC Management |
|
100.0% |
1) Shinhan Life Insurance and Orange Life Insurance merged on July 1st, 2021 and became Shinhan Life Insurance Co., Ltd 2) On January 15, SFG acquired remaining 35% interests in Shinhan BNP Paribas Asset Management and it became our wholly-owned subsidiary (changed its legal name to Shinhan Asset Management) 3) Jeju Bank is currently listed on the Korea Exchange. 4) On January 30, 2013, Yehanbyoul Savings Bank joined SFG as a direct subsidiary. On April 1, 2013, Shinhan Savings Bank merged with Yehanbyoul Savings Bank, both of which were direct subsidiaries of Shinhan Financial Group. As a result of the integration of the two savings banks, the previous Shinhan Savings Bank has been liquidated and is thus no longer a subsidiary of Shinhan Financial Group and instead, Yehanbyoul Savings Bank now exists under the name of “Shinhan Savings Bank” as an existing legal entity constituting a member of Shinhan Financial Group. 5) The Group has acquired remaining shares of Asia Trust Co., Ltd during the period, and Asia Trust Co., Ltd became its wholly-owned subsidiary. Asia Trust Co., Ltd has changed its name to Shinhan Asset Trust Co., Ltd. 6) On November 30, 2012, Shinhan AITAS Co., Ltd. joined SFG as a direct subsidiary. Prior to November 30, 2012, Shinhan AITAS was an indirect subsidiary of SFG under Shinhan Bank, a wholly-owned bank subsidiary of SFG. On April 03, 2023, Shinhan AITAS changed its legal name to Shinhan Fund Partners. 7) On January 11, Neoplux changed its legal name to Shinhan Venture Investment. 8) On June 30, 2022, SFG acquired remaining 94.54% stake from BNP Paribas Cardiff and it became our wholly-owned subsidiary (changed its legal name to Shinhan EZ General Insurance) On November 03,2022, KT and Douzone Bizon acquired 9.9% and 5% shares of Shinhan EZ General Insurance, respectively.
|
||
6
Indirect subsidiaries held through direct subsidiaries (as of the reporting date)
Direct Subsidiaries |
|
Indirect Subsidiaries |
|
Ownership by the Parent |
Shinhan Bank |
|
Shinhan Bank America |
|
100.0% |
|
Shinhan Bank Japan 5) |
|
100.0% |
|
|
Shinhan Bank Europe |
|
100.0% |
|
|
Shinhan Bank Cambodia |
|
97.5% |
|
|
Shinhan Bank Kazakhstan |
|
100.0% |
|
|
Shinhan Bank China Limited |
|
100.0% |
|
|
Shinhan Bank Canada |
|
100.0% |
|
|
Shinhan Bank Vietnam |
|
100.0% |
|
|
|
Banco Shinhan de Mexico |
|
99.99% |
|
|
PT Bank Shinhan Indonesia |
|
99.0% |
Shinhan Card |
|
LLP MFO Shinhan Finance |
|
100.0% |
|
PT. Shinhan Indo Finance |
|
76.3% |
|
|
Shinhan Microfinance Co., Ltd. |
|
100.0% |
|
|
Shinhan Vietnam Finance Co. Ltd. |
|
100.0% |
|
|
|
Shinhan Credit Information Co.Ltd 6) |
|
100.0% |
Shinhan Securities |
|
Shinhan Securities New York |
|
100.0% |
|
Shinhan Securities Hong Kong |
|
100.0% |
|
|
Shinhan Securities Vietnam Co., Ltd |
|
100.0% |
|
|
PT Shinhan Sekuritas Indonesia |
|
99.0% |
|
|
|
Shinhan Smilegate Global PEF1 4) |
|
10.0% |
|
|
Shinhan SKS PEF |
|
9.59% |
|
|
Shinhan Praxis K-Growth Global Private Equity Fund 2) |
|
14.1% |
Shinhan Life Insurance |
|
Shinhan Financial Plus |
|
100.0% |
|
|
Shinhan CubeOn Co., Ltd. |
|
100.0% |
|
|
Shinhan Life Insurance Vietnam Limited Liability Company |
|
100.0% |
Shinhan Asset Management |
|
Shinhan Asset MGT HK, Limited |
|
100.0% |
|
|
Shinhan Private Equity Fund 2nd 3) |
|
66.3% |
|
|
JS Shinhan Private Equity Fund |
|
0.06% |
|
|
Shinhan Nautic Private Equity Fund I |
|
9.23% |
Shinhan DS |
|
Shinhan DS Vietnam Co. Limited |
|
100.0% |
Shinhan Venture Investment |
|
Neoplux 3rd PEF |
|
10.0% |
1) Shinhan Financial Group and its subsidiaries currently own 18.9% in the aggregate. 2) Shinhan Financial Group and its subsidiaries currently own 96.74% in the aggregate. 4) SBJ Bank own 100% in the aggregate. |
||||
7
Credit Ratings (as of June 30, 2023)
Date |
Types of Issuance |
Credit Rating |
Rating Company (Rating Range) |
2022.01.18 |
Write-down Contingent Capital Securities |
AA- |
Korea Rating(AAA~D) / KIS Rating(AAA~D) / NICE Investors Service(AAA~D) |
2022.02.21 |
Debentures |
AAA |
Korea Rating(AAA~D) / KIS Rating(AAA~D) / NICE Investors Service(AAA~D) |
2022.03.22 |
Debentures |
AAA |
Korea Rating(AAA~D) / KIS Rating(AAA~D) / NICE Investors Service(AAA~D) |
2022.04.19 |
Debentures |
AAA |
Korea Rating(AAA~D) / KIS Rating(AAA~D) / NICE Investors Service(AAA~D) |
2022.05.20 |
Debentures |
AAA |
Korea Rating(AAA~D) / KIS Rating(AAA~D) / NICE Investors Service(AAA~D) |
2022.06.30 |
Commercial Paper |
A1 |
Korea Rating(A1~D) / KIS Rating(A1~D) / NICE Investors Service(A1~D) |
2022.06.30 |
Electronic Short-term Bond |
A1 |
Korea Rating(A1~D) / KIS Rating(A1~D) / NICE Investors Service(A1~D) |
2022.07.15 |
Debentures |
AAA |
Korea Rating(AAA~D) / KIS Rating(AAA~D) / NICE Investors Service(AAA~D) |
2022.08.12 |
Write-down Contingent Capital Securities |
AA |
Korea Rating(AAA~D) / KIS Rating(AAA~D) / NICE Investors Service(AAA~D) |
2022.10.17 |
Debentures |
AAA |
Korea Rating(AAA~D) / KIS Rating(AAA~D) / NICE Investors Service(AAA~D) |
2022.11.08 |
Debentures |
AAA |
Korea Rating(AAA~D) / KIS Rating(AAA~D) / NICE Investors Service(AAA~D) |
2023.01.16 |
Write-down Contingent Capital Securities |
AA |
Korea Rating(AAA~D) / KIS Rating(AAA~D) / NICE Investors Service(AAA~D) |
2023.01.30 |
Debentures |
AAA |
Korea Rating(AAA~D) / KIS Rating(AAA~D) / NICE Investors Service(AAA~D) |
2023.02.23 |
Debentures |
AAA |
Korea Rating(AAA~D) / KIS Rating(AAA~D) / NICE Investors Service(AAA~D) |
2023.03.21 |
Debentures |
AAA |
Korea Rating(AAA~D) / KIS Rating(AAA~D) / NICE Investors Service(AAA~D) |
2023.04.20 |
Debentures |
AAA |
Korea Rating(AAA~D) / KIS Rating(AAA~D) / NICE Investors Service(AAA~D) |
2023.05.22 |
Debentures |
AAA |
Korea Rating(AAA~D) / KIS Rating(AAA~D) / NICE Investors Service(AAA~D) |
2023.06.30 |
Write-down Contingent Capital Securities (Issue date: 13 July 2023) |
AA |
Korea Rating(AAA~D) / KIS Rating(AAA~D) / NICE Investors Service(AAA~D) |
2023.06.30 |
Commercial Paper |
A1 |
Korea Rating(A1~D) / KIS Rating(A1~D) / NICE Investors Service(A1~D) |
2023.06.30 |
Electronic Short-term Bond |
A1 |
Korea Rating(A1~D) / KIS Rating(A1~D) / NICE Investors Service(A1~D) |
8
Number of Shares (as of June 30, 2023)
Types of Shares |
|
Number of Shares |
Number of shares authorized for issuance |
|
1,000,000,000 |
Number of common shares issued (1)(2)(4) |
|
518,347,118 |
Number of preferred shares issued (5) |
|
- |
Total outstanding shares |
|
518,347,118 |
Treasury stocks (3) |
|
6,352 |
Total outstanding shares |
|
518,340,766 |
(1) SFG issued 8,232,906 shares of common stock in relation to a comprehensive stock exchange between SFG and Orange Life Insurance on January 28, 2020. On June 1, 2020, SFG cancelled 5,035,658 treasury shares. On September 29, 2020, SFG had a paid-in capital increase and issued 39,130,000 common shares (third-party allocation). On December 30, 2020, SFG issued 72,719 shares of common stock in relation to a small-scale stock exchange between SFG and Neoplux. (2) For more information, please refer to SFG’s reports on Form 6-K furnished to the Securities and Exchange Commission on February 12, 2019 and April 30, 2019. (3) SFG acquired treasury stocks through the acquisition of fractional shares as a result of a stock exchange between SFG and Orange Life Insurance on January 28, 2020 and between SFG and Neoplux on December 30, 2020. (4) SFG canceled treasury shares of 3,665,423 on 25 April, 2022, 4,149,252 on 23 Nov, 2022, 3,676,470 on 38 March,2023, and 4,243,381 on 16 June 2023 after completion of share repurchase program on 25 April, 2022. Capital does not change due to the cancellation of acquired stocks within the range of dividend payable income. (5) 17,482,000 shares of Convertible Preferred Shares had automatically converted to common shares on 1 May 2023 upon the completion of conversion claim period. |
||
9
Dividends
|
|
|
(KRW million) |
Items |
1H2023 (Jan. 1 ~ Jun. 30) |
FY 2022 (Jan. 1 ~ Dec. 31) |
FY 2021 (Jan. 1 ~ Dec. 31) |
Par value per share (Won) |
5,000 |
5,000 |
5,000 |
(Consolidated) Net Income |
2,626,223 |
4,665,643 |
4,019,254 |
(Separate) Net Income |
1,730,323 |
1,249,251 |
1,413,956 |
(Consolidated Earnings per share (Won) |
4,847 |
8,498 |
7,308 |
Total Cash dividends |
546,486 |
1,092,813 |
1,046,787 |
Total stock dividends |
- |
- |
- |
(Consolidated) Cash dividend payout ratio (%) |
20.81 |
23.54 |
26.04 |
Cash dividend yield (%) – common shares |
3.04 |
5.49 |
5.16 |
Cash dividend yield (%) – preferred shares |
- |
- |
- |
Stock dividend yield (%) |
- |
- |
- |
Cash dividend per share (Won) |
1,050 |
2,065 |
1,960 |
Stock dividend per share |
- |
- |
- |
Note) Cash dividend payout ratio on a common share basis for 1H 2023 is 20.46%. |
|||
10
2. Business Results
Operating Results
|
|
|
(KRW billion) |
|||
|
1H2023 (Jan. 1 ~ Jun. 30) |
FY 2022 (Jan. 1 ~ Dec. 31) |
FY 2021 (Jan. 1 ~ Dec. 31) |
|||
Net interest income |
5,268 |
10,597 |
10,769 |
|||
Interest income |
13,308 |
20,092 |
14,724 |
|||
Interest expense |
8,040 |
9,496 |
3,955 |
|||
Net fees and commission income |
1,253 |
2,418 |
2,675 |
|||
Fees and commission income |
1,996 |
3,884 |
4,140 |
|||
Fees and commission expense |
743 |
1,466 |
1,465 |
|||
Net insurance income |
159 |
1,849 |
-775 |
|||
Insurance income |
1,463 |
3,629 |
6,485 |
|||
Insurance expense |
1,304 |
1,780 |
7,260 |
|||
Net gain(loss) on securities and FX trading/derivatives |
1,602 |
-381 |
1,524 |
|||
Provision for credit loss and impairment loss |
-1,009 |
-1,318 |
-996 |
|||
Net other operating income(expense) |
-982 |
-1,616 |
-1,501 |
|||
General and administrative expenses |
2,799 |
5,644 |
5,743 |
|||
Net operating income |
3,492 |
5,906 |
5,952 |
|||
Equity method income |
67 |
122 |
159 |
|||
Other non-operating income(expense), net |
26 |
339 |
-527 |
|||
Profit before income taxes |
3,585 |
6,367 |
5,584 |
|||
Income tax expense |
902 |
1,611 |
1,471 |
|||
Consolidated net profit |
2,683 |
4,756 |
4,113 |
|||
Net profit attributable to equity holders of the Group |
2,626 |
4,666 |
4,019 |
|||
Net profit attributable to non-controlling interest |
57 |
90 |
93 |
|||
1) Some of the totals may not sum due to rounding. 2) Fiscal Year 2022 has been restated retrospectively to reflect newly applied K-IFRS no.1117 ‘Insurance Contract’ from 2023. Fiscal Year 2021 has not been restated. |
||||||
11
Source and Use of Funds
Consolidated Basis (KRW billion, %) |
1H 2023 |
FY 2022 |
FY 2021 |
||||||||||
Jan. 1 ~ Jun. 30 |
Jan. 1 ~ Dec. 31 |
Jan. 1 ~ Dec. 31 |
|||||||||||
Average Balance1) |
Propor-tions (%) |
Interest Paid |
Interest Rate (%) |
Average Balance1) |
Propor-tions (%) |
Interest Paid |
Interest Rate (%) |
Average Balance1) |
Propor-tions (%) |
Interest Paid |
Interest Rate (%) |
||
Source |
Deposits |
382,660.4 |
56.9 |
4,673.3 |
2.46 |
374,433.2 |
57.3 |
4,642.7 |
1.24 |
344,759.5 |
55.0 |
2,173.8 |
0.63 |
Borrowings |
38,047.8 |
5.7 |
633.0 |
3.36 |
34,678.8 |
5.3 |
669.3 |
1.93 |
29,458.2 |
4.7 |
247.8 |
0.84 |
|
Debt Securities Issued |
75,080.5 |
11.2 |
1,272.3 |
3.42 |
78,719.1 |
12.1 |
1,901.5 |
2.42 |
77,207.2 |
12.3 |
1,390.2 |
1.80 |
|
Other Liabilities |
121,653.7 |
18.0 |
- |
- |
113,498.0 |
17.4 |
- |
- |
127,835.4 |
20.3 |
- |
- |
|
Total Liabilities |
617,442.4 |
91.8 |
- |
- |
601,329.1 |
92.1 |
- |
- |
579,260.3 |
92.3 |
- |
- |
|
Total Stockholder's Equity |
55,082.9 |
8.2 |
- |
- |
51,819.8 |
7.9 |
- |
- |
48,104.0 |
7.7 |
- |
- |
|
Total Liabilities & SE |
672,525.3 |
100.0 |
- |
- |
653,148.9 |
100.0 |
- |
- |
627,364.3 |
100.0 |
- |
- |
|
Use |
Cash & Due from Banks |
34,559.3 |
5.1 |
282.3 |
1.65 |
29,660.1 |
4.5 |
282.9 |
0.95 |
30,080.8 |
4.8 |
87.1 |
0.29 |
Loans |
408,880.7 |
60.7 |
10,634.6 |
5.25 |
398,391.1 |
61.0 |
16,146.9 |
4.05 |
375,592.7 |
59.9 |
11,928.3 |
3.18 |
|
Loans in KRW |
315,332.9 |
46.9 |
7,845.1 |
5.02 |
308,197.4 |
47.2 |
11,760.0 |
3.82 |
293,331.7 |
46.8 |
8,503.5 |
2.90 |
|
Loans in Foreign Currency |
39,838.0 |
5.9 |
1,040.3 |
5.27 |
36,601.1 |
5.6 |
1,551.6 |
4.24 |
31,871.4 |
5.1 |
1,084.7 |
3.40 |
|
Credit Card Accounts |
27,914.8 |
4.2 |
1,049.6 |
7.58 |
27,229.1 |
4.2 |
1,979.3 |
7.27 |
24,642.6 |
3.9 |
1,890.8 |
7.67 |
|
Others |
25,350.2 |
3.7 |
699.6 |
5.57 |
26,363.5 |
4.0 |
856.0 |
3.25 |
25,747.0 |
4.1 |
449.3 |
1.75 |
|
FVOCI Financial Assets |
83,619.2 |
12.4 |
1,071.8 |
2.58 |
86,538.1 |
13.2 |
1,837.8 |
2.12 |
59,643.5 |
9.5 |
889.2 |
1.49 |
|
AC Financial Assets |
34,196.8 |
5.1 |
495.1 |
2.92 |
29,778.9 |
4.6 |
691.8 |
2.32 |
48,587.8 |
7.7 |
1,092.0 |
2.25 |
|
Other Assets |
111,714.1 |
16.7 |
- |
- |
108,780.7 |
16.7 |
- |
- |
113,459.5 |
18.1 |
- |
- |
|
Total Assets |
672,525.3 |
100.0 |
- |
- |
653,148.9 |
100.0 |
- |
- |
627,364.3 |
100.0 |
- |
- |
|
|
|||||||||||||
12
3. Other Financial Information
1) Capital Adequacy
Consolidated BIS Ratio (Shinhan Financial Group)
|
|
|
(KRW billion) |
|
Jun. 30, 2023 |
Dec. 31, 2022 |
Dec. 31, 2021 |
Aggregate Amount of Equity Capital (A) |
49,460.2 |
46,981.8 |
43,824.2 |
Risk-Weighted Assets (B) |
310,660.4 |
291,542.6 |
270,692.2 |
BIS Ratio (A/B) |
15.92% |
16.11% |
16.19% |
Note: ▪ Calculated in accordance with Basel III ▪ The figures as of June 30, 2023 are preliminary |
|
|
|
Capital Adequacy Ratios (Subsidiaries)
|
|
|
|
(%) |
Subsidiary |
Capital Adequacy Ratio |
Jun. 30, 2023 |
Dec. 31, 2022 |
Dec. 31, 2021 |
Shinhan Bank |
BIS Capital Adequacy Ratio |
18.4 |
17.8 |
18.2 |
Shinhan Card |
Adjusted Equity Capital Ratio |
19.3 |
18.6 |
18.9 |
Shinhan Securities |
Net Capital Ratio |
1,157.0 |
1,112.9 |
1,285.8 |
Shinhan Life Insurance |
Risk Based Capital Ratio |
218.6 |
267.7 |
284.7 |
Shinhan Capital |
Adjusted Equity Capital Ratio |
17.7 |
16.4 |
17.42 |
Shinhan Asset Management |
Equity Capital (KRW billion) |
218.3 |
213.3 |
202.5 |
Minimum Capital Requirement (KRW billion) |
47.3 |
46.8 |
31.1 |
|
Jeju Bank |
BIS Capital Adequacy Ratio |
16.6 |
16.4 |
17.2 |
Shinhan Savings Bank |
BIS Capital Adequacy Ratio |
16.0 |
14.4 |
12.4 |
Shinhan Asset Trust |
Net Capital Ratio |
1,070.8 |
1,107.7 |
1007.4 |
Shinhan EZ Gen. Insurance |
Risk Based Capital Ratio |
561.1 |
620.8 |
233.9 |
Notes : ▪ Basel III was applied in calculating Shinhan Bank and Jeju Bank’s BIS Capital Adequacy Ratio. ▪ Basel I was applied in calculating Shinhan Savings Bank’s BIS Capital Adequacy Ratio. ▪ Shinhan EZ General Insurance became SFG’s wholly-owned subsidiary on June 30, 2022. ▪ The figures as of June 30, 2023 are preliminary ▪ Shinhan Life and Shinhan EZ General Insurance upgraded its insurance risk measurement system in anticipation of a new regulatory solvency regime for insurance companies, the Korean-Insurance Capital Standard (the “K-ICS”). As of the date of submission of the 2Q report in 2023, the above payment capacity ratio is preliminary calculated, and the finally confirmed ratio will be amended and disclosed in Shinhan Life's 2Q 2023 business report and Shinhan EZ General Insurance's 2Q management disclosure. |
||||
2) Liquidity
Won Liquidity Ratio
|
|
|
(KRW billion, %) |
||||||||
Company |
Jun. 30, 2023 |
Dec. 31, 2022 |
Dec. 31, 2021 |
||||||||
Won Assets |
Won Assets |
Won Liquidity Ratio(%) |
Won Assets |
Won Liabilities |
Won Liquidity Ratio(%) |
Won Liabilities |
Won Liabilities |
Won Liquidity Ratio(%) |
|||
Shinhan Financial Group |
1,603.7 |
42.5 |
3,776.6 |
875.4 |
131.7 |
664.5 |
981.8 |
286.5 |
342.7 |
||
Shinhan Card |
21,076.8 |
5,403.0 |
390.1 |
21,102.5 |
5,863.2 |
359.9 |
18,950.6 |
5,024.4 |
377.2 |
||
Shinhan Securities |
22,340.9 |
17,287.2 |
129.2 |
19,341.7 |
13,867.7 |
139.5 |
18,798.1 |
13,153.0 |
142.9 |
||
Shinhan Life Insurance |
18,231.4 |
1,733.3 |
1051.9 |
21,822.0 |
1,616.3 |
1,350.1 |
2,292.4 |
1,336.6 |
171.5 |
||
Shinhan Capital |
2,478.9 |
1,050.6 |
236.0 |
2,949.0 |
722.3 |
408.3 |
1,575.9 |
797.458 |
197.6 |
||
Shinhan Savings Bank |
644.7 |
344.0 |
187.4 |
684.1 |
576.2 |
118.7 |
525.1 |
477.3 |
110.0 |
||
Shinhan Asset Trust |
272.2 |
19.7 |
1384.0 |
314.3 |
27.3 |
1151.2 |
243.0 |
42.5 |
571.7 |
||
Shinhan AI |
25.0 |
0.7 |
37.9 |
30.3 |
0.8 |
36.9 |
29.5 |
1.5 |
19.3 |
||
Shinhan EZ General Insurance |
63.6 |
1.2 |
5,458.0 |
83.5 |
1.7 |
4,918.8 |
19.3 |
1.0 |
1,977.5 |
||
Notes: ▪ Shinhan Financial Group: Due within 1 month ▪ Shinhan Life Insurance and Orange Life Insurance: (Won assets due within 3 months /3 months average of Claim payments )*100 ▪ Shinhan Card, Shinhan Securities, Shinhan Capital, and Shinhan Savings Bank : Due within 3 months ▪ Liquidity Ratio for Shinhan Bank and Jeju Bank have been replaced by Liquidity Coverage Ratio from Mar 31, 2015 to reflect the recent amendments to detailed regulations on supervision of banking business. |
|||||||||||
Liquidity Coverage Ratio
|
|
|
(KRW billion, %) |
||||||
Company |
Jun. 30, 2023 |
Dec. 31, 2022 |
Dec. 31, 2021 |
||||||
High Quality Liquid Assets |
Net Cash Outflows |
Liquidity Coverage Ratio(%)* |
High Quality Liquid Assets |
Net Cash Outflows |
Liquidity Coverage Ratio(%) |
High Quality Liquid Assets |
Net Cash Outflows |
Liquidity Coverage Ratio(%) |
|
Shinhan Bank |
81,035.2 |
82,112.8 |
98.7 |
82,709.0 |
83,705.6 |
98.8 |
68,922.6 |
78,444.5 |
87.9 |
Jeju Bank |
896.1 |
634.0 |
141.3 |
915.4 |
823.3 |
111.8 |
803.9 |
748.9 |
108.4 |
Notes: ▪ Liquidity Coverage Ratios are the arithmetic mean of daily LCRs. ▪ Financial Services Commission temporarily eased the regulatory minimum from 100.0% to 85.0% by end of June, to 90.0% by end of September 2022, to 92.5% by end of June, 2023. After July 2023, the ratio will be gradually increased and normalized from the first quarter of 2024.
|
|||||||||
Foreign Currency (FC) Liquidity Ratio
|
|
|
(USD millions, %) |
||||||
Company |
Jun. 30, 2023 |
Dec. 31, 2022 |
Dec. 31, 2021 |
||||||
FC Assets |
FC Liabilities |
FC Liquidity Ratio(%) |
FC Assets |
FC Liabilities |
FC Liquidity Ratio(%) |
FC Assets |
FC Liabilities |
FC Liquidity Ratio(%) |
|
Shinhan Financial Group |
50.4 |
9.9 |
510.2 |
65.0 |
9.9 |
655.7 |
94.9 |
9.9 |
958.0 |
Shinhan Securities |
9,792.2 |
8,584.8 |
114.1 |
6,985.2 |
6,355.4 |
109.9 |
7,226.4 |
6,980.2 |
103.5 |
Shinhan Capital |
49.7 |
0.4 |
12,122.0 |
79.6 |
0.4 |
18,859.5 |
96.7 |
0.4 |
23,033.1 |
Jeju Bank |
17.1 |
15.6 |
109.3 |
13.8 |
14.3 |
96.9 |
27.6 |
25.5 |
108.0 |
Notes : ▪ Foreign currency liquidity ratios are computed with assets and liabilities due within 3 months. ▪ Shinhan Bank’s foreign currency liquidity ratio reflected securitization weight with the guidelines issued by the FSS. ▪ Shinhan Bank’s foreign currency liquidity ratio has been replaced by Foreign Liquidity Coverage Ratio. |
|||||||||
Foreign Currency (FC) Liquidity Coverage Ratio
|
|
|
(USD millions, %) |
Company |
2023 2Q |
2022 4Q |
2021 4Q |
Jan. 1 ~ Mar. 31 |
Jan. 1 ~ Dec. 31 |
Jan. 1 ~ Dec. 31 |
|
Shinhan Bank |
130.2 |
141.11 |
112.6 |
Notes :
3) Asset Quality
SFG Consolidated Basis
(KRW billion) |
|||
|
Jun. 30, 2023 |
Dec. 31, 2022 |
Dec. 31, 2021 |
Total Loans |
407,791.8 |
412,421.1 |
393,049.4 |
Substandard & Below |
2,536.7 |
2,122.9 |
1,741.0 |
Substandard & Below Ratio |
0.62% |
0.51% |
0.44% |
Non-Performing Loans |
2,161.8 |
1,800.8 |
1,363.9 |
NPL Ratio |
0.53% |
0.44% |
0.35% |
Substandard & Below Coverage Ratio |
162.71% |
176.99% |
182.50% |
Loan Loss Allowance |
4,127.3 |
3,757.4 |
3,177.3 |
Substandard & Below Loans |
2,536.7 |
2,122.9 |
1,741.0 |
Separate Basis
(%) |
Jun. 30 2023 |
Dec. 31 2022 |
Dec. 31 2021 |
||||||
Substandard & Below Ratio |
NPL Ratio |
Substandard & Below Coverage Ratio |
Substandard & Below Ratio |
NPL Ratio |
Substandard & Below Coverage Ratio |
Substandard & Below Ratio |
NPL Ratio |
Substandard & Below Coverage Ratio 1) |
|
Shinhan Financial Group |
- |
- |
- |
- |
- |
- |
- |
- |
- |
Shinhan Bank |
0.27 |
0.21 |
206 |
0.25 |
0.20 |
202 |
0.27 |
0.21 |
163 |
Shinhan Card |
1.36 |
0.77 |
234 |
0.92 |
0.43 |
315 |
0.88 |
0.36 |
314 |
Shinhan Securites |
11.19 |
11.20 |
56 |
10.16 |
10.16 |
57 |
4.83 |
4.83 |
98 |
Shinhan Life Insurance |
0.16 |
0.15 |
488 |
0.06 |
0.06 |
357 |
0.07 |
0.07 |
286 |
Shinhan Capital |
1.71 |
1.27 |
93 |
0.93 |
0.72 |
118 |
0.42 |
0.38 |
165 |
Jeju Bank |
0.76 |
0.66 |
121 |
0.55 |
0.46 |
128 |
0.51 |
0.43 |
95 |
Shinhan Savings Bank |
3.02 |
6.57 |
125 |
2.45 |
4.27 |
143 |
2.13 |
2.32 |
108 |
Shinhan Asset Trust |
29.24 |
29.24 |
40 |
23.07 |
23.07 |
84 |
85.37 |
85.37 |
59 |
4) Debt to Equity Ratios
Shinhan Financial Group (Separate Basis)
(KRW billion) |
|||
|
Jun. 30, 2023 |
Dec. 31, 2022 |
Dec. 31, 2021 |
Debt |
10,572.2 |
10,779.8 |
10,410.5 |
Equity |
27,561.8 |
26,676.5 |
26,405.4 |
Debt to Equity Ratio |
38.36% |
40.41% |
39.43% |
Twenty Largest Exposures by Borrower
(KRW billion) |
||||||
As of Jun. 30, 2023 Consolidated basis |
Loans in Won |
Loans in Foreign Currency |
Securities |
Guarantees and Acceptances |
Others |
Total Exposures |
LG Display |
224.3 |
814.0 |
173.0 |
510.5 |
- |
1,721.8 |
Woori Bank |
1,241.0 |
91.9 |
360.8 |
- |
- |
1,693.7 |
Nong Hyup Bank |
617.9 |
12.6 |
784.9 |
67.3 |
- |
1,482.7 |
National Agriculture Cooperative Federation |
65.2 |
- |
1,098.0 |
- |
- |
1,163.2 |
Lotte Hotel |
100.7 |
388.3 |
275.7 |
365.7 |
- |
1,130.5 |
KEB Hana Bank |
675.0 |
73.9 |
345.4 |
32.5 |
- |
1,126.7 |
Samsung Heavy Industries Co.,Ltd |
0.0 |
- |
- |
1,040.8 |
- |
1,040.8 |
HD Hyundai Heavy Industries Co.,Ltd |
70.0 |
41.5 |
32.9 |
879.2 |
- |
1,023.6 |
KB Bank |
663.1 |
16.6 |
326.1 |
15.1 |
- |
1,020.9 |
Korea Electric Power Corporation |
0.3 |
- |
881.0 |
96.8 |
- |
978.1 |
KB Card |
- |
34.2 |
936.7 |
- |
- |
970.8 |
SK Hynix |
500.0 |
- |
240.1 |
204.5 |
- |
944.6 |
Samsung C&T |
- |
43.8 |
49.3 |
781.2 |
0.0 |
874.3 |
Hyundai Steel |
329.2 |
260.8 |
221.1 |
27.1 |
0.0 |
838.2 |
NH Investment & Securities |
702.7 |
- |
130.7 |
- |
- |
833.4 |
Hana Card |
- |
- |
809.7 |
- |
- |
809.7 |
Hyundai Card |
31.1 |
62.8 |
628.8 |
62.8 |
- |
785.4 |
IBK Asset Management |
- |
- |
768.1 |
- |
- |
768.1 |
Mirae Asset Management |
0.0 |
- |
747.8 |
- |
- |
747.8 |
Kia |
264.3 |
438.0 |
34.7 |
8.7 |
0.0 |
745.8 |
Total |
5,484.7 |
2,278.3 |
8,844.8 |
4,092.3 |
0.0 |
20,700.1 |
Note) Some of the totals may not sum due to rounding |
||||||
Exposure to ten Main Debtor Groups
(KRW billion) |
||||||
As of Jun. 30, 2023 Consolidated basis |
Loans in Won |
Loans in Foreign Currency |
Securities |
Guarantees and Acceptances |
Others |
Total Exposures |
Hyundai Motor Company |
917.0 |
2,783.4 |
1,766.6 |
600.1 |
0.0 |
6,067.1 |
SK |
1,415.2 |
624.0 |
1,905.6 |
1,008.3 |
0.0 |
4,953.2 |
Samsung |
187.8 |
1,480.6 |
1,180.8 |
1,889.3 |
0.0 |
4,738.5 |
Lotte |
762.4 |
893.0 |
1,779.2 |
821.8 |
1.2 |
4,257.5 |
LG |
701.4 |
1,125.3 |
867.5 |
676.8 |
0.0 |
3,371.0 |
Hyundai Heavy Industries |
244.9 |
152.4 |
308.5 |
2,170.0 |
0.0 |
2,875.8 |
Hanwha |
332.1 |
420.0 |
1,024.8 |
609.1 |
0.0 |
2,386.1 |
LS |
259.4 |
881.8 |
133.5 |
783.3 |
0.2 |
2,058.3 |
KT |
83.6 |
126.7 |
838.3 |
200.7 |
0.0 |
1,249.3 |
Hyosung |
215.4 |
674.6 |
14.9 |
225.7 |
0.0 |
1,130.6 |
Total |
5,119.2 |
9,161.9 |
9,819.9 |
8,985.2 |
1.4 |
33,087.5 |
Note) Some of the totals may not sum due to rounding |
||||||
Top Twenty Non-Performing Loans
(KRW billion) |
||||
Borrower |
Industry |
Gross Principal Outstanding |
Substandard & Below |
Allowance for Loan Losses |
A |
Other financial service activities n.e.c. |
149.9 |
149.9 |
60.9 |
B |
Other financial service activities n.e.c. |
119.8 |
119.8 |
96.5 |
C |
Other financial service activities n.e.c. |
56.5 |
56.5 |
56.5 |
D |
Other financial service activities n.e.c. |
44.1 |
44.1 |
18.8 |
E |
Other financial investment businesses |
41.0 |
41.0 |
2.1 |
F |
Other financial service activities n.e.c. |
40.1 |
40.1 |
27.2 |
G |
Building of steel ships |
26.4 |
26.4 |
0.5 |
H |
Other financial service activities n.e.c. |
26.3 |
26.3 |
26.3 |
I |
Other financial service activities n.e.c. |
26.2 |
26.2 |
0.9 |
J |
Manufacture of sections for ships |
21.0 |
21.0 |
2.5 |
K |
Other financial investment businesses |
20.4 |
20.4 |
0.6 |
L |
Other financial investment businesses |
22.6 |
20.3 |
20.7 |
M |
Other financial service activities n.e.c. |
20.0 |
20.0 |
14.5 |
N |
Sea freight water transport |
19.0 |
19.0 |
0.5 |
O |
Other financial service activities n.e.c. |
17.3 |
17.3 |
13.0 |
P |
Apartment building construction |
15.6 |
15.6 |
12.3 |
Q |
Development and subdividing of residential buildings |
15.0 |
15.0 |
4.9 |
R |
Development and subdividing of other real estate |
13.8 |
13.8 |
10.2 |
S |
Other financial service activities n.e.c. |
13.1 |
13.1 |
- |
T |
General warehousing |
12.1 |
12.1 |
- |
Total |
720.0 |
717.7 |
368.9 |
|
Notes : ▪ Consolidated basis as of Jun. 30, 2023 ▪ Some of the totals may not sum due to rounding. |
||||
4. Independent Auditor
Audit Opinion for the last 3 years
|
1H 2023 |
FY 2022 |
FY 2023 |
Independent Auditor |
KPMG Samjong Accounting Corp. |
PwC Samil Accounting Corp. |
PwC Samil Accounting Corp. |
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 preparation.
Year |
Auditor |
Payment 1) |
Details |
Working hours |
1H 2023 |
KPMG Samjong Accounting Corp. |
1,007 (annualized basis) |
Review/Audit of Financial Statements |
2,867 Hours |
KPMG Samjong Accounting Corp. |
133 (annualized basis) |
K-IFRS Report Package Audit for Shinhan Savings Bank |
239 Hours |
|
FY 2022 |
PwC Samil Accounting Corp. |
987 (annualized basis) |
Review/Audit of Financial Statements |
9,235 Hours |
PwC Samil Accounting Corp. |
130 (annualized basis) |
K-IFRS Report Package Audit for Shinhan Savings Bank |
1,004 Hours |
|
FY 2021 |
PwC Samil Accounting Corp. |
958 (annualized basis) |
Review/Audit of Financial Statements |
9,283 Hours |
PwC Samil Accounting Corp. |
126 (annualized basis) |
K-IFRS Report Package Audit for Shinhan Savings Bank |
1,078.5 Hours |
|
PwC Samil Accounting Corp. |
73 (annualized basis) |
Review Consolidation of Asia Trust |
610.5 Hours |
|
1) Excluding value-added taxes. * In addition to above mentioned description of fees for audit and review services, also provided services related to US listing and ICOFR audit in accordance with the standards of the PCAOB which we agreed to pay KRW 2,323 million(excluding value-added taxes) for FY2023. |
||||
5. Corporate Governance
Board of Directors and committees of the Board of Directors
Our board of directors, which currently consists of one executive director, one non-executive director and 9 outside directors, has the ultimate responsibility for the management of our affairs.
Our Articles of Incorporation provide for no less than three but no more than 15 directors, the number of outside directors must be more than 50% of the total number of directors, and we must maintain at least three outside directors. All directors are elected for a term not exceeding three years as determined by the shareholders’ meeting, except that outside directors are elected for a term not exceeding two years, provided that the term of re-election shall not exceed one year and the term cannot be extended in excess of six years. The aggregate term served as an outside director of us or any of our subsidiaries shall not exceed nine years.
Terms are renewable and are subject to the Korean Commercial Code, the Financial Holding Companies Act, the Act on Corporate Governance of Financial Companies and related regulations. See “Item 6.A. Directors and Senior Management” above for information concerning the terms of office of our directors and executive officers.
Our board of directors meets on a regular basis to discuss and resolve material corporate matters. Additional extraordinary meetings may also be convened at the request of the chairman and chief executive officer or a director designated by the board.
Currently, there are no outstanding service contracts between any of our directors or executive officers and us or any of our subsidiaries providing for benefits upon termination of employment by such director or executive officer.
• Committees of the Board of Directors
We currently have seven management committees that serve under the board:
Each committee member is appointed by the board of directors, except for members of the Audit Committee, who are elected at the general meeting of shareholders.
• Risk Management Committee
The Risk Management Committee currently consists of 3 outside directors, namely Lee Yong Guk (Chair), Sung Jae-ho and Choi Jae Boong. The committee oversees and makes determinations on all issues relating to our comprehensive risk management function. In order to ensure our stable financial condition and to maximize our profits, the committee monitors our overall risk exposure and reviews our compliance with risk policies and risk limits. In addition, the committee reviews risk and control strategies and policies, evaluates whether each risk is at an adequate level, establishes or abolishes risk management divisions, reviews risk-based capital allocations, and reviews the plans and evaluation of internal control. The committee holds regular meetings every quarter.
• Audit Committee
The Audit Committee currently consists of 3 outside directors, namely Yoon Jaewon (Chair), Kwak Su Keun, and Bae Hoon. The committee oversees our financial reporting and approves the appointment of and interaction with our independent auditors and our internal audit-related officers. The committee also reviews our financial information, audit examinations, key financial statement issues and the administration of our financial affairs by the board of directors. In connection with the general meetings of stockholders, the committee examines the agenda for, and financial statements and other reports to be submitted by, the board of directors for each general meeting of shareholders. The committee holds regular meetings every quarter.
• Remuneration Committee
The Remuneration Committee currently consists of 4 outside directors, namely Sung Jae-ho (Chair), Kwak Su Keun, Kim Jo Seol and Lee Yoon-jae. At least one-half of the members of this committee must be outside directors and currently all members of Remuneration Committee are outside directors. This committee is responsible for reviewing and approving the management’s evaluation and compensation programs. The committee meetings are called by the chairman of this committee, who must be an outside director.
• Committee for Recommending Candidates for Independent Directors and Members of Audit Committee
The Committee for recommending candidates for independent directors and members of audit committee currently consists of 5 outside directors, namely Choi Jae Boong (Chair), Kim Jo Seol, Yoon Jaewon, Lee Yong Guk and Jin Hyun-duk. Members of this committee will be appointed by our board of directors only to the extent necessary to recommend and nominate candidates for our outside director positions, audit committee members and related matters. However, when the procedure for final recommendation of outside director and audit committee member candidates commences, all outside directors are called to participate in the committee and in this case, all outside directors are deemed as enrolled. The committee meetings are called by the chairman of this committee, who must be an outside director. This committee is responsible and authorized for: (i) establishment, review and reinforcement of policies for outside director and audit committee member selection, (ii) recommendation of outside director and audit committee member candidates for approval at the general shareholders’ meeting and (iii) continual recruitment and screening of potential outside director candidates.
• Committee for Recommending Candidates for CEO
The Committee for recommending candidates for Chief Executive Officer (CEO) was established in March 2012 and currently consists of 6 directors, namely Sung Jae-ho (Chair), Jin Hyun-duk, Lee Yoon-jae, Bae Hoon, Lee Yong Guk and Choi Jae Boong. However, when the meeting for final selection of candidates for Chief Executive Officer, all outside directors are called to participate in the committee and in this case, all outside directors are deemed as enrolled. This committee is responsible for matters concerning the recommendation of candidates for the CEO including establishing and reviewing our management succession plan and its operation, setting and evaluating the qualifications and criteria for the CEO and CEO candidate pool and other matters necessary for improving our overall corporate governance structure. The chair of the committee must be an outside director, and the incumbent CEO may be restricted from participating and voting on matters related to the CEO selection.
• Environmental, Social and Governance (ESG) Strategy Committee
The ESG Strategy Committee was established in March 2015 and currently consists of 1 executive director and 4 outside directors, namely Kwak Su Keun (Chair), Kim Jo Seo, Yoon Jaewon, Lee Yong Guk and Jin Okdong. This committee is responsible for setting the corporate policy for sustainable management, corporate disclosure of sustainability report and discussing specific business agenda in relation to socially responsible management and other matters such as corporate strategy toward climate change.
• Committee for Managing Subsidiary’s Business
The Committee for managing subsidiary’s business was established in March 2021 and currently consists of 1 executive director and 4 outside directors, namely Jin Okdong (Chair), Kwak Su Keun, Bae Hoon, Sung Jae-ho and Lee Yoon-jae. This committee is responsible for matters concerning the evaluation of subsidiary management leadership, establishment of subsidiary CEO qualifications, verification and recommendation of subsidiary CEO candidates and other matters deemed necessary by the committee.
Note) On January 12, 2023, Byeon Yang-ho, one of outsider directors, resigned due to personal reasons.
6. Major Shareholder and Market Price Information of our Common Shares and ADRs
Major Shareholders1) of Shinhan Financial Group as of Jun. 30, 2023
Name |
No. of Common Shares owned |
Ownership%2) |
National Pension Service |
38,918,475 |
7.51% |
BlackRock Fund Advisors3) |
29,063,012 |
5.61% |
Employee Stock Ownership Association4) |
26,988,396 |
5.21% |
1) Shareholders who own beneficial ownership of 5% or more (common share basis). 2) Ownership is based on the total number of common shares issued, 518,347,118 shares. 3) Based on the large equity ownership discloser by BlackRock Fund Advisors with the Financial Supervisory Service on Sep. 27, 2018. 4) The number of stocks owned by Employee Stock Ownership Association is the sum of 26,921,596 shares owned in the Employee Stock Ownership accounts and 66,800 shares in the ESOA account. |
||
Common Shares Traded on the Korea Exchange
|
|
|
|
|
(KRW, number of shares) |
||
|
Jan. 2023 |
Feb. 2023 |
Mar. 2023 |
Apr. 2023 |
May. 2023 |
Jun. 2023 |
|
Price per share |
High |
44,900 |
42,450 |
37,700 |
35,900 |
35,750 |
35,700 |
Low |
34,300 |
37,900 |
34,450 |
34,300 |
34,550 |
33,850 |
|
Avg. |
41,108 |
39,758 |
35,720 |
35,123 |
35,070 |
34,771 |
|
Trading Volume |
38,313,527 |
30,922,795 |
36,752,783 |
22,250,001 |
26,504,520 |
20,371,479 |
|
Highest Daily Trading Volume |
3,988,771 |
2,578,534 |
2,886,686 |
2,038,028 |
5,709,393 |
1,931,552 |
|
Lowest Daily Trading Volume |
660,649 |
790,817 |
1,045,362 |
728,126 |
671,463 |
588,962 |
|
American Depositary Receipts traded on the New York Stock Exchange
|
|
|
|
|
(USD, number of shares) |
||
|
Jan. 2023 |
Feb. 2023 |
Mar. 2023 |
Apr. 2023 |
May. 2023 |
Jun. 2023 |
|
Price per share |
High |
36.62 |
35.09 |
29.74 |
27.11 |
26.99 |
27.74 |
Low |
27.48 |
29.23 |
25.59 |
26.14 |
25.69 |
25.85 |
|
Avg. |
33.49 |
31.32 |
27.29 |
26.57 |
26.35 |
26.96 |
|
Monthly Trading Volume |
2,348,608 |
2,525,414 |
4,542,763 |
2,648,698 |
2,742,683 |
2,158,363 |
|
Highest Daily Trading Volume |
194,209 |
240,267 |
422,547 |
208,687 |
255,015 |
209,094 |
|
Lowest Daily Trading Volume |
60,454 |
71,076 |
96,102 |
68,074 |
76,250 |
72,118 |
|
Note) 1 ADR = 1 Common Shares |
|||||||
7. Directors, Executive Officers and Employees
Directors and Executive Officers
1) Executive Director
Name |
Date of Birth |
Position |
Executive Director Since |
Date Term Ends(1) |
Jin Okdong |
Feb. 21, 1961 |
Chief Executive Officer |
March 23, 2023 |
March 2026 |
Note: The date on which the term will end will be the date of the general shareholders’ meeting in the relevant year.
Jin Okdong is our Chief Executive Officer. Prior to being elected to his current position on March 23, 2023, Mr. Jin served as the chief executive officer of Shinhan Bank from 2019 to 2023.
Mr. Jin served as the deputy president of Shinhan Financial Group from 2017 to 2018, the deputy president of Shinhan Bank in 2017 and the chief executive officer of Shinhan Bank Japan from 2015 to 2016. Mr. Jin received a master’s degree in business administration from Chung Ang University.
2) Non-Executive Directors
Non-executive directors are directors who are not our employees and do not hold executive officer positions with us. Outside directors are non-executive directors who also satisfy the requirements set forth under the Financial Investment Services and Capital Markets Act to be independent of our major shareholders, affiliates and management. Our non-executive directors are selected based on the candidates’ talents and skills in diverse areas, such as law, finance, economics, management and accounting. Currently, 10 non-executive directors are in office, all of whom were nominated by our board of directors and approved at a general meeting of shareholders.
Our non-executive and outside directors are as follows:
Name |
Date of Birth |
Position |
Director Since |
Date Term Ends(1) |
Jung Sang Hyuk |
Nov. 26, 1964 |
Non-Executive Director |
March 23, 2023 |
March 2025 |
Bae Hoon |
Jun. 30, 1953 |
Outside Director |
March 25, 2021 |
March 2024 |
Sung Jae-ho |
Jun. 18, 1960 |
Outside Director |
March 27, 2019 |
March 2024 |
Lee Yong Guk |
May 11, 1964 |
Outside Director |
March 25, 2021 |
March 2024 |
Lee Yoon-jae |
Nov. 3, 1950 |
Outside Director |
March 27, 2019 |
March 2024 |
Kim Jo Seol |
Dec. 5, 1957 |
Outside Director |
March 24, 2022 |
March 2024 |
Choi Jae Boong |
Feb. 18, 1965 |
Outside Director |
March 25, 2021 |
March 2024 |
Kwak Su Keun |
Aug. 16, 1953 |
Outside Director |
March 25, 2021 |
March 2024 |
Yoon Jaewon |
Aug. 29, 1970 |
Outside Director |
March 26, 2020 |
March 2024 |
Jin Hyun-duk |
Sep. 10, 1955 |
Outside Director |
March 26, 2020 |
March 2024 |
Note: The date on which each term will end will be the date of the general shareholders’ meeting in the relevant year.
※On January 12, 2023, Byeon Yang-ho, one of outsider directors, resigned due to personal reasons.
Jung Sang Hyuk has been our non-executive director since March 23, 2023. Mr. Jung was the chief executive officer of Shinhan Bank and previously served as the deputy president of Shinhan Bank from 2020 to 2023 Mr. Jung received a bachelor’s degree in economics from Seoul National University.
Bae Hoon has been our outside director since March 25, 2021. Mr. Bae is a Korean lawyer and Certified Public Accountant in Japan and currently serves as a representative attorney at Orbis Legal Profession Corporation. Mr. Bae received a master’s degree in business administration from Kobe University.
Sung Jae-ho has been our outside director since March 27, 2019. Mr. Sung is currently a professor at Sung Kyun Kwan University School of Law. Mr. Sung previously served as a policy advisor of the Ministry of Unification in 2009 and the Ministry of Foreign Affairs and Trade in 2002. Mr. Sung also served as an outside director of NICE Holdings from 2018 to 2019 and Shinhan Card from 2015 to 2019, and chairman of Korea Council of International Law. Mr. Sung received a Ph.D. in law from Sung Kyun Kwan University.
Lee Yong Guk has been our outside director since March 25, 2021. Mr. Lee is a clinical professor at Seoul National University, School of Law. Mr. Lee was previously an attorney at Cleary Gottlieb Steen & Hamilton LLP for 27 years. Mr. Lee received a J.D. from Harvard University Law School.
Lee Yoon-jae has been our outside director since March 27, 2019. Mr. Lee served as an outside director for various Korean companies, such as LG, KT&G and S-Oil from 2006 to 2015. In addition, he held the chief executive officer position at KorEI from 2001 to 2010. Mr. Lee received a master’s degree in business administration from Stanford Graduate School of Business.
Kim Jo Seol has been newly appointed as our outside director since March 24, 2022. Ms. Kim is a Korean-Japanese professor who teaches economics at Osaka University of Commerce and economist with a high awareness of Northeast Asian economics. Ms Kim received a Ph.D. in economics from Osaka City University.
Choi Jae Boong has been our outside director since March 25, 2021. Mr. Choi currently serves as a professor of mechanical engineering at Sung Kyun Kwan University, College of Engineering and director of Human-centered Convergence Design BK(Brain Korea)21+ Project, which is a human resource development program initiated by the Government. Mr. Choi received a Ph.D. in mechanical engineering from University of Waterloo.
Kwak Su Keun has been our outside director since March 25, 2021. Mr. Kwak currently serves as an honorary professor of accounting at Seoul National University, Business School and chair of Corporate Governance Advisory Board at Korea Listed Companies Association. Mr. Kwak received a Ph.D in business administration from University of North Carolina Chapel Hill.
Yoon Jaewon has been our outside director since March 26, 2020. Ms. Yoon is currently a professor at Hongik University College of Business Administration and member of the committee for National Tax Service as well as the committee on national accounting policy of the Ministry of Economy and Finance and Korea Custom Service. Ms. Yoon previously served as a non-executive judge at the Tax Tribunal from 2013 to 2019. Ms. Yoon received a Ph.D in accounting from Korea University.
Jin Hyun-duk has been our outside director since March 26, 2020. Mr. Jin currently serves as the chief executive officer of Phoedra Co., Ltd. since 1988 and councilor of the Korea Educational Foundation. Mr. Jin was previously a professor at Sakushin-gakuin University and Utsunomiya University. Mr. Jin received a master’s degree in business administration from Keio Business School.
Any director wishing to enter into a transaction with Shinhan Financial Group or any of its subsidiaries in his or her personal capacity is required to obtain the prior approval of our board of directors. The director having an interest in the transaction may not vote at the meeting of our board of directors at which the relevant transaction is subject to vote for approval.
3) Executive Officers
In addition to the executive directors who are also our executive officers, we currently have the following executive officers.
Name |
Date of Birth |
Position |
In Charge of |
Jang Dong-ki |
Jan. 2, 1964 |
Deputy President |
Global Markets & Securities Business Group |
Wang Ho-min |
Jun. 4, 1964 |
Deputy President and Chief Compliance Officer |
Compliance Team |
Lee Een-kyoon |
Apr. 1, 1967 |
Deputy President and Chief Operation Officer |
Shinhan Leadership Center Management Support Team ICT Planning Team |
Ahn Jun Sik |
May 1, 1965 |
Deputy President and Chief Public Relations Officer |
Brand PR Division |
Kim Soung Jo |
Jan. 18, 1967 |
Deputy President |
Group Audit |
Name |
Date of Birth |
Position |
In Charge of |
Bang Dong-kwon |
Feb. 10, 1966 |
Deputy President and Chief Risk Officer |
Risk Management Team Risk Model Validation Team Credit Review Team |
Lee Taekyung |
May. 30, 1966 |
Deputy President and Chief Financial Officer |
Finance Management Team Investor Relations Team Accounting Division |
Kim Myoung Hee |
Jan. 16, 1968 |
Deputy President and Chief Digital Officer |
Digital Planning Team
|
Koh Seogheon |
Sept. 27, 1968 |
Executive Director and Chief Strategy & Sustainability Officer |
Strategic Planning Team ESG Planning Team
|
Kim Tae Youn |
Jul. 7, 1968 |
Executive Director and Head of Accounting Division |
Accounting Planning Team Internal Control on Financial Reporting Team |
None of the executive officers have any significant activities outside Shinhan Financial Group.
Jang Dong-ki has been our deputy president since January 1, 2018. Mr. Jang previously served as Chief Financial Officer of Shinhan Financial Group, the head of finance management team, managing director and the head of the capital market and trading division of Shinhan Bank. Mr. Jang received a bachelor’s degree in economics from Seoul National University.
Wang Ho-min has been our deputy president and chief compliance officer since January 1, 2019. Mr. Wang previously served as the branch manager of Southern Jam-sil branch, Seoul Southern District Court branch and the head of corporate culture development team. Mr. Wang received a bachelor’s degree in law from Hankuk University of Foreign Studies.
Lee Een-kyoon has been our deputy president and chief operation officer since January 1, 2019. Mr. Lee previously served as the head of management support team and the head of secretary’s office of Shinhan Bank. Mr. Lee received a bachelor’s degree in English literature from Hanyang University.
Ahn Jun Sik has been our deputy president and chief public relations officer since January 1, 2021. Mr. Ahn previously served as the head of Seocho Division at Shinhan Bank. Mr. Ahn received a bachelor’s degree in economics from Pusan National University..
Kim Soung Jo has been our deputy president since January 1, 2021. Mr. Kim previously served as the head of audit team at Shinhan Financial Group. Mr. Kim received a bachelor’s degree in economics from Seoul National University.
Bang Dong-kwon has been our chief risk officer since January 1, 2020. Mr. Bang previously served as the head of risk management department of Shinhan Bank. Mr. Bang received a bachelor’s degree in English language and literature from Sung Kyun Kwan University.
Lee Taekyung has been our deputy president and chief financial officer since January 1, 2022. Mr. Lee previously served as the CEO of Shinhan Bank Vietnam and the CEO of Shinhan Bank Cambodia. Mr. Lee received a bachelor’s degree in economics from Seoul National University.
Kim Myoung Hee has been our deputy president and chief digital officer since January 1, 2022. Before joining Shinhan Financial Group, Ms. Kim was the CEO, Hancom MDS Inc. Ms. Kim received a Ph.D. in Knowledge Consulting from Dankook University and master’s degree in Management Information System from Sogang University.
Koh Seogheon has been our executive director and chief strategy & sustainability officer since January 1, 2022. Mr. Koh previously served as the head of business management division and strategic planning team of Shinhan Financial Group. Mr. Koh received a bachelor’s degree in economics from Seoul National University.
Kim TaeYoun has been our executive director and head of accounting division since January 1, 2022. Mr. Kim previously served as the managing director of finance management team of Shinhan Financial Group. Mr. Kim received a bachelor’s degree in economics from Yonsei University.
There are no family relationships among our directors and/or executive officers.
Compensation to Directors
1) Total Amount Approved at the Meeting of Shareholders
(As of Jun. 30, 2023) |
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|
Total number of persons |
Total amount approved at shareholders’ meeting (KRW millions) |
Notes |
Directors (Outside directors) |
11(9) |
3,000 |
No distinction is made between registered directors, outside directors, and members of the audit committee. |
Note) Represents the aggregate amount for all directors (including outside directors) excluding long-term incentives. |
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2) Total Amount Paid
(As of Jun. 30, 2023) |
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|
Total number of Persons |
Total compensation (KRW million) |
Average compensation per person (KRW million) |
Notes |
Registered Directors |
2 |
428 |
214 |
- |
Outside Directors |
6 |
257 |
39 |
- |
Audit committee members or internal auditor |
3 |
147 |
43 |
- |
Notes : Represents the total number of applicable persons as of Jun. 30, 2023. |
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Compensation to Non-registered directors
(As of Jun. 30, 2023) |
||||
|
Total number of persons |
Total compensation |
Average Compensation per person (KRW million) |
Notes |
Non-registered directors |
10 |
3,703 |
370 |
- |
Stock Options
None
Employees
Gender |
Number of Employees |
Average length of Service |
Total Salaries and wages paid in 2023 (KRW million) |
Average Payment per person (KRW million) |
Male |
132 |
3 yrs 4 mths (15 yrs 6 mths) |
15,439 |
108 |
Female |
41 |
3 yrs 7 mths (11 yrs) |
3,144 |
68 |
Total |
173 |
3 yrs 5 mths (14 yrs 5 mths) 1) |
18,583 |
98 |
1) Average length of service including services within group subsidiaries 2) Total Salaries and wages is the amount paid from Jan.1,2023 to Jun.30, 2023. |
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8. Related Party Transactions
Loans to Subsidiaries
(KRW billion) |
|||||||||
Loans to Subsidiaries |
Type |
Origination Date |
Maturity Date |
Lending Rate |
Beginning Balance (Jan. 1, 2023) |
Decrease |
Increase |
Others1) |
Ending Balance (Mar. 31, 2023) |
Shinhan Card |
Loan |
2018-02-22 |
2023-02-22 |
2.90% |
100 |
100 |
- |
- |
- |
Loan |
2019-04-18 |
2024-04-18 |
2.04% |
100 |
- |
- |
- |
100 |
|
Loan |
2019-04-18 |
2026-04-18 |
2.09% |
100 |
- |
- |
- |
100 |
|
Loan |
2019-10-22 |
2024-10-22 |
1.76% |
40 |
- |
- |
- |
40 |
|
Loan |
2019-10-22 |
2026-10-22 |
1.81% |
60 |
- |
- |
- |
60 |
|
Loan |
2020-09-17 |
2025-09-17 |
1.48% |
200 |
- |
- |
- |
200 |
|
Loan |
2020-10-29 |
2023-10-29 |
1.24% |
150 |
- |
- |
- |
150 |
|
Loan |
2020-10-29 |
2025-10-29 |
1.46% |
150 |
- |
- |
- |
150 |
|
Loan |
2021-02-18 |
2026-02-18 |
1.54% |
150 |
- |
- |
- |
150 |
|
Loan |
2021-02-24 |
2026-02-24 |
1.62% |
150 |
- |
- |
- |
150 |
|
Loan |
2021-11-11 |
2024-11-11 |
2.39% |
170 |
- |
- |
- |
170 |
|
Loan |
2021-11-11 |
2026-11-11 |
2.55% |
10 |
- |
- |
- |
10 |
|
Loan |
2022-04-20 |
2025-06-20 |
3.71% |
100 |
- |
- |
- |
100 |
|
Loan |
2022-07-18 |
2025-07-18 |
4.21% |
100 |
- |
- |
- |
100 |
|
Loan |
2022-07-18 |
2027-07-18 |
4.25% |
100 |
- |
- |
- |
100 |
|
Loan |
2023-04-21 |
2028-04-21 |
4.21% |
- |
- |
100 |
- |
100 |
|
Loan |
2019-11-19 |
2025-02-04 |
2.79% |
507 |
- |
- |
18 |
525 |
|
Loan |
2021-05-26 |
2026-05-12 |
1.53% |
38 |
- |
- |
1 |
39 |
|
Financial assets at FVPL |
2022-03-17 |
2052-03-17 |
4.01% |
343 |
- |
- |
25 |
368 |
|
Financial assets at FVPL |
2023-02-14 |
2053-02-14 |
5.28% |
- |
- |
300 |
3 |
303 |
|
Shinhan Securities |
Loan |
2019-11-19 |
2025-02-04 |
2.79% |
114 |
- |
- |
4 |
118 |
Loan |
2020-08-20 |
2025-08-20 |
2.55% |
630 |
- |
- |
22 |
652 |
|
Financial assets at FVPL |
2021-06-14 |
- |
2.93% |
285 |
- |
- |
28 |
313 |
|
Shinhan Capital |
Loan |
2019-02-01 |
2024-02-01 |
2.23% |
50 |
- |
- |
- |
50 |
Loan |
2019-05-24 |
2024-05-24 |
1.92% |
20 |
- |
- |
- |
20 |
|
Loan |
2020-04-10 |
2025-04-10 |
1.75% |
200 |
- |
- |
- |
200 |
|
Loan |
2020-12-23 |
2025-12-23 |
1.57% |
160 |
- |
- |
- |
160 |
|
Loan |
2021-03-16 |
2026-03-16 |
1.83% |
150 |
- |
- |
- |
150 |
|
Loan |
2021-05-13 |
2026-05-12 |
1.53% |
253 |
- |
- |
10 |
263 |
|
Financial assets at FVPL |
2020-04-22 |
2050-04-22 |
3.56% |
90 |
- |
- |
5 |
95 |
|
Financial assets at FVPL |
2021-07-28 |
2051-07-28 |
3.38% |
128 |
- |
- |
5 |
133 |
|
Shinhan Savings Bank |
Loan |
2020-05-28 |
2025-05-28 |
1.52% |
50 |
- |
- |
- |
50 |
Loan |
2021-04-26 |
2026-04-26 |
1.85% |
50 |
- |
- |
- |
50 |
|
Loan |
2021-05-28 |
2026-05-28 |
1.99% |
50 |
- |
- |
- |
50 |
|
Shinhan DS |
Loan |
2022-02-03 |
2023-02-02 |
2.30% |
20 |
20 |
- |
- |
- |
Loan |
2023-02-02 |
2024-02-01 |
3.86% |
0 |
0 |
15 |
- |
15 |
|
Shinhan Venture |
Loan |
2022-12-27 |
2023-03-27 |
4.38% |
40 |
40 |
- |
- |
- |
Loan |
2023-03-27 |
2023-06-26 |
3.81% |
- |
- |
40 |
- |
40 |
|
Loan |
2023-06-26 |
2023-10-26 |
4.08% |
- |
- |
50 |
-1 |
49 |
|
Total |
4,858 |
200 |
505 |
120 |
5,283 |
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9. Material Information after the reporting period
Announcement on Acquisition and Cancellation of Shares
In accordance with the resolution of the Board of Directors on July 27, 2023, the Group resolved to acquire and cancel the treasury shares within the profits available for dividends.
Number of Shares to be Acquired and Cancelled: 2,994,011 common shares
Estimated Acquisition and Cancellation Amount: KRW 100,000,000,000원
Scheduled Acquisition Period: July 28, 2023 ~ October 27, 2023
Note) “Estimated Amount to be Cancelled” are calculated using the closing share price of common shares of SFG on July 26, 2023 (one day prior to this announcement). The actual number of shares to be cancelled is subject to change depending on share price fluctuation.
For more detailed information, please refer to the Independent Accountant’s Audit Report, which was reported on Form 6-K on July 27, 2023.
Announcement on Quarterly Cash Dividends
In accordance with the resolution of the Board of Directors on July 27, 2023, the Group resolved to pay quarterly cash dividends.
Total dividend amount to be paid: KRW 272,128,902,150 (KRW 525 per share)
The total number of shares subject to dividend is 518,340,766 shares, including class shares
Record date: June 30, 2023
Appointment of New Excecutives
On June 30, 2023, Park Hyun Joo, vice president of Shinhan Bank, was newly appointed as an executive of Chief Consumer Protection Officer(CCPO), and the term of office is from July1st 2023 to December 31, 2023.
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.
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Shinhan Financial Group Co., Ltd. |
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(Registrant) |
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Date: August 14, 2023 |
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By: |
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/s/ Lee Taekyung |
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Name: Lee Taekyung |
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Title: Chief Financial Officer |
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Exhibit 99.1
Shinhan Financial Group Review Report for the Second Quarter of 2023 (Consolidated)
Contents:
Report on Review of Interim Financial Statements |
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Consolidated Interim Statements of Financial Position |
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Consolidated Interim Statements of Comprehensive Income |
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Consolidated Interim Statements of Changes in Equity |
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Consolidated Interim Statements of Cash Flows |
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Notes to the Consolidated Interim Financial Statements |
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Please refer to the attached courtesy PDF file to see more details.