6-K 1 6-k-20240516.htm 6-K 6-K

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 May 2024

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 1Q of 2024 (Seperate)

99.2

 

Shinhan Financial Group Review Report for the 1Q of 2024 (Consolidated)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2

Summary of 1Q 2024 Business Report

 

On May 16, 2024, Shinhan Financial Group (“SFG”) filed its 1Q 2024 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

Not required to be disclosed in quarterly reports. Please refer to the business report for FY2023 submitted on March 18, 2024 for your references.

 

Overview of the Business Group

Not required to be disclosed in quarterly reports. Please refer to the business report for FY2023 submitted on March 18, 2024 for your references.

 

Credit Ratings

Not required to be disclosed in quarterly reports. Please refer to the business report for FY2023 submitted on March 18, 2024 for your references.

 

Number of Shares (as of March 31, 2024)

Types of Shares

 

Number of Shares

Number of shares authorized

for issuance

 

1,000,000,000

Number of common shares issued (1)

 

509,393,214

Number of preferred shares issued

 

-

Total outstanding shares

 

509,393,214

Treasury stocks (2)

 

6,352

Total outstanding shares
with voting rights

 

509,386,862

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 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) 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.

3) SFG canceled treasury shares of 5,035,658 on June 01, 2020, 3,665,423 on 25 April, 2022, 4,149,252 on 23 November, 2022, 3,676,470 on 28 March,2023, 4,243,281 on 16 June 2023, 2,842,929 on 31, August 2023, and 2,744,718 on 27 December 2023, and 3,366,257 on 22 March 2024 after completion of share repurchase program. Capital does not change due to the cancellation of acquired stocks within the range of dividend payable income.

4) 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.

 

 

Dividends

 

 

 

(KRW million)

Items

1Q 2024

(Jan. 1 ~ Mar. 31)

FY 2023

(Jan. 1 ~ Dec. 31)

FY 2022

(Jan. 1 ~ Dec. 31)

Par value per share (Won)

5,000

5,000

5,000

(Consolidated) Net Income

1,321,532

4,868,035

4,665,643

(Separate) Net Income

1,773,171

1,671,011

1,249,251

(Consolidated Earnings per share (Won)

2,513

8,048

8,498

Total Cash dividends

275,069

1,086,317

1,092,813

Total stock dividends

-

-

-

(Consolidated) Cash dividend payout ratio (%)

20.81

24.87

23.42

Cash dividend yield (%) – common shares

1.08

4.78

5.49

Cash dividend yield (%) – preferred shares

-

-

-

Stock dividend yield (%)

-

-

-

Cash dividend per share (Won)

540

2,100

2,065

Stock dividend per share

-

-

-

1) Cash dividend payout ratio on a common share basis for FY 2022 is 22.65%, and FY 2023 is 24.66%.

2) FY2022 has been restated retrospectively to reflect newly applied K-IFRS no.1117 ‘Insurance Contract’ from FY2023.

 

4

2. Business Results

Operating Results

 

 

 

(KRW billion)

 

1Q 2024

(Jan. 1 ~ Mar. 31)

FY 2023

(Jan. 1 ~ Dec. 31)

FY 2022

(Jan. 1 ~ Dec. 31)

Net interest income

 2,816

 10,818

 10,597

Interest income

 7,190

 27,579

 20,092

Interest expense

 4,375

 16,761

 9,496

Net fees and commission income

 703

 2,647

 2,414

Fees and commission income

 1,064

 4,175

 3,884

Fees and commission expense

 361

 1,528

 1,471

Net insurance income

 161

 598

 1,849

Insurance income

 792

 3,088

 3,629

Insurance expense

 631

 2,490

 1,780

Net gain(loss) on securities and FX trading/derivatives

 707

 2,485

-381

Provision for credit loss and impairment loss

-378

-2,251

-1,318

Net other operating income(expense)

-569

-2,300

-1,616

General and administrative expenses

 1,372

 5,895

 5,644

Net operating income

 2,068

 6,101

 5,906

Equity method income

-8

 125

 122

Other non-operating income(expense), net

-270

-261

 339

Profit before income taxes

 1,791

 5,965

 6,367

Income tax expense

 443

 1,487

 1,611

Consolidated net profit

 1,348

 4,478

 4,756

Net profit attributable to equity holders of the Group

 1,322

 4,368

 4,666

Net profit attributable to non-controlling interest

 26

 110

90

1) Some of the totals may not sum due to rounding..

2) FY 2022 has been restated retrospectively to reflect newly applied K-IFRS no.1117 ‘Insurance Contract’ from FY2023.

 

5

 

Source and Use of Funds

Consolidated Basis

(KRW billion, %)

1Q 2024

FY 2023

FY 2022

Jan. 1 ~ Mar. 31

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

388,431.7

55.4

2,478.9

2.57

383,064.0

56.3

9,790.8

2.56

374,433.2

57.3

4,642.7

1.24

Borrowings

37,229.7

5.3

321.2

3.47

38,083.3

5.6

1,291.3

3.39

34,678.8

5.3

669.3

1.93

Debt Securities Issued

83,130.8

11.9

801.9

3.88

76,797.0

11.3

2,735.4

3.56

78,719.1

12.1

1,901.5

2.42

Other Liabilities

135,441.7

19.3

-

-

126,335.2

18.6

-

-

113,498.0

17.4

-

-

Total Liabilities

644,233.9

91.9

-

-

624,279.5

91.8

-

-

601,329.1

92.1

-

-

Total Stockholder's Equity

56,543.8

8.1

-

-

55,597.4

8.2

-

-

51,819.8

7.9

-

-

Total Liabilities & SE

700,777.7

100.0

-

-

679,876.9

100.0

-

-

653,148.9

100.0

-

-

Use

Cash & Due from Banks

34,849.0

5.0

178.7

2.06

34,892.3

5.1

590.8

1.69

29,660.1

4.5

282.9

0.95

Loans

418,999.5

59.8

5,573.8

5.35

410,463.6

60.4

21,823.8

5.32

398,391.1

61.0

16,146.9

4.05

  Loans in KRW

326,974.7

46.7

4,098.6

5.04

317,950.0

46.8

16,093.6

5.06

308,197.4

47.2

11,760.0

3.82

  Loans in Foreign Currency

41,701.2

6.0

576.4

5.56

40,341.7

5.9

2,160.6

5.36

36,601.1

5.6

1,551.6

4.24

  Credit Card Accounts

27,774.7

4.0

556.8

8.06

27,965.4

4.1

2,162.1

7.73

27,229.1

4.2

1,979.3

7.27

  Others

22,548.9

3.1

342.0

6.10

24,206.5

3.6

1,407.5

5.81

26,363.5

4.0

856.0

3.25

FVOCI Financial Assets

87,256.5

12.5

654.0

3.01

84,680.8

12.5

2,341.9

2.77

86,538.1

13.2

1,837.8

2.12

AC Financial Assets

35,626.0

5.1

270.9

3.06

34,708.0

5.1

1,062.1

3.06

29,778.9

4.6

691.8

2.32

Other Assets

124,046.7

17.6

-

-

115,132.2

16.9

-

-

108,780.7

16.7

-

-

Total Assets

700,777.7

100.0

-

-

679,876.9

100.0

-

-

653,148.9

100.0

-

-

1) The “Average Balance” is the arithmetric mean of the ending balance of each quarter.
2) FY 2022 has been restated retrospectively to reflect newly applied K-IFRS no.1117 ‘Insurance Contract’ from FY2023.

6

 

3. Other Financial Information

 

1) Capital Adequacy

Consolidated BIS Ratio (Shinhan Financial Group)

 

 

 

(KRW billion)

 

Mar. 31, 2024

Dec. 31, 2023

Dec. 31, 2022

Aggregate Amount of Equity Capital (A)

51,419.6

50,192.5

46,981.8

Risk-Weighted Assets (B)

324.420.3

314,180.7

291,542.6

BIS Ratio (A/B)

15.85%

15.98%

16.11%

Note:

▪
Calculated in accordance with Basel III
▪
The figures as of March 31, 2024 are preliminary

 

 

 

Capital Adequacy Ratios (Subsidiaries)

 

 

 

 

(%)

Subsidiary

Capital Adequacy Ratio

Mar. 31, 2024

Dec. 31, 2023

Dec. 31, 2022

Shinhan Bank

BIS Capital Adequacy Ratio

17.6

18.1

17.8

Shinhan Card

Adjusted Equity Capital Ratio

19.2

19.7

18.6

Shinhan Securities

Net Capital Ratio

847.4

926.6

1,112.9

Shinhan Life Insurance

Risk Based Capital Ratio(K-ICS)

240.0

250.8

267.7

Shinhan Capital

Adjusted Equity Capital Ratio

18.0

19.0

16.4

Shinhan Asset Management

Equity Capital (KRW billion)

216.0

233.2

213.3

Minimum Capital Requirement (KRW billion)

50.2

49.1

46.8

Jeju Bank

BIS Capital Adequacy Ratio

19.6

17.5

16.4

Shinhan Savings Bank

BIS Capital Adequacy Ratio

18.6

14.4

12.4

Shinhan Asset Trust

Net Capital Ratio

877.5

926.8

1,107.7

Shinhan EZ Gen. Insurance

Risk Based Capital Ratio(K-ICS)

406.5

469.4

620.8

Notes :

▪
Basel III was applied in calculating Shinhan Bank and Jeju Bank’s BIS Capital Adequacy Ratio.
▪
Shinhan EZ General Insurance became SFG’s wholly-owned subsidiary on June 30, 2022.
▪
The figures as of March 31, 2024 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 1Q report in 2024, the above payment capacity ratio is preliminary calculated, and the finally confirmed ratio will be amended and disclosed in Shinhan Life's 1Q 2024 business report and Shinhan EZ General Insurance's 1Q management disclosure.

 

 

 

 

 

 

 

 

 

2) Liquidity

Won Liquidity Ratio

 

 

 

(KRW billion, %)

Company

Mar. 31, 2024

Dec. 31, 2023

Dec. 31, 2022

Won Assets

Won Assets

Won Liquidity Ratio(%)

Won Assets

Won Liabilities

Won Liquidity Ratio(%)

Won Liabilities

Won Liabilities

Won Liquidity Ratio(%)

Shinhan Financial Group

3,330.7

1,039.4

320.4

721.2

235.9

305.8

875.4

131.7

664.5

Shinhan Card

22,624.9

6,892.2

328.3

21,732.0

5,970.0

364.0

21,102.5

5,863.2

359.9

Shinhan Securities

25,469.3

22,549.8

112.9

25,804.2

21,888.6

117.9

19,341.7

13,867.7

139.5

Shinhan Life Insurance

19,821.0

1,393.5

1,422.4

21,863.8

1,479.1

1,478.2

21,822.0

1,616.3

1,350.1

Shinhan Capital

3,359.6

1,028.3

326.7

2,760.2

1,064.9

259.2

2,949.0

722.3

408.3

Shinhan Savings Bank

739.2

523.4

141.2

721.7

602.2

119.8

684.1

576.2

118.7

Shinhan Asset Trust

195.5

26.7

732.5

185.2

21.2

872.0

314.3

27.3

1,151.2

Shinhan AI

33.1

0.8

39.1

28.0

0.9

30.5

30.3

0.8

36.9

Shinhan EZ General Insurance

12.0

0.3

3,527.8

135.3

2.0

6,788.2

83.5

1.7

4,918.8

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

Mar. 31, 2024

Dec. 31, 2023

Dec. 31, 2022

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

86,357.1

83,493.0

103.4

85,172.4

85,155.4

100.0

82,709.0

83,705.6

98.8

Jeju Bank

981.3

640.7

157.2

1,020.7

813.0

125.6

915.4

823.3

111.8

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

Mar. 31, 2024

Dec. 31, 2023

Dec. 31, 2022

FC

Assets

FC Liabilities

FC Liquidity Ratio(%)

FC

Assets

FC Liabilities

FC Liquidity Ratio(%)

FC

Assets

FC

Liabilities

FC Liquidity Ratio(%)

Shinhan Financial Group

37.0

-

N/A

33.3

20.8

160.2

65.0

9.9

655.7

Shinhan Securities

10,024.5

8,769.0

114.3

10,318.0

9,117.0

113.2

6,985.2

6,355.4

109.9

Shinhan Capital

49.6

1.2

4,285.1

55.6

0.4

13,556.1

79.6

0.4

18,859.5

Jeju Bank

13.4

4.3

309.2

13.4

2.2

605.7

13.8

14.3

96.9

Notes :

▪
Foreign currency liquidity ratios are computed with assets and liabilities due within 3 months.
▪
Shinhan Bank’s foreign currency liquidity ratio has been replaced by Foreign Liquidity Coverage Ratio.

Foreign Currency (FC) Liquidity Coverage Ratio

 

 

 

(USD millions, %)

Company

2024 1Q

2023 4Q

2022 4Q

Jan. 1 ~ Mar. 31

Jan. 1 ~ Dec. 31

Jan. 1 ~ Dec. 31

Shinhan Bank

160.7

157.8

141.1

 

Notes :

▪
Financial Services Commission temporarily eased the regulatory minimum from 80% to 70% by end of June 2022, in order to support the capacity of banks to provide funding to businesses affected by COVID-19. Starting From September 2022, the regulation will be reinstated to 80.0%.
▪
Foreign Currency Liquidity Coverage Ratio is calculated by quaterly average.

 

 

 

3) Asset Quality

 

SFG Consolidated Basis

(KRW billion)

 

Mar. 31, 2024

Dec. 31, 2023

Dec. 31, 2022

Total Loans

423,846.0

413,664.8

412,421.1

Substandard & Below

3,027.8

2,668.4

2,122.9

Substandard & Below Ratio

0.71%

0.65%

0.51%

Non-Performing Loans

2,431.6

2,176.6

1,800.8

NPL Ratio

0.57%

0.53%

0.44%

Substandard & Below Coverage Ratio

145.86%

165.61%

176.99%

Loan Loss Allowance

4,416.5

4,419.1

3,757.4

Substandard & Below Loans

3,027.8

2,668.4

2,122.9

 

Separate Basis

(%)

Mar. 31 2024

Dec. 31 2023

Dec. 31 2022

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

0.26

0.20

208

0.24

0.19

233

0.25

0.20

202

Shinhan Card

1.45

0.77

229

1.31

0.70

248

0.92

0.43

315

Shinhan Securites

14.79

14.79

58

12.86

12.86

62

10.16

10.16

57

Shinhan Life Insurance

0.25

0.25

433

0.21

0.21

510

0.06

0.06

357

Shinhan Capital

2.01

1.10

149

1.74

0.74

193

0.93

0.72

118

Jeju Bank

1.25

1.12

102

0.98

0.87

120

0.55

0.46

128

Shinhan Savings Bank

6.47

10.38

70

4.38

9.10

93

2.45

4.27

143

Shinhan Asset Trust

74.91

74.91

24

64.66

64.66

15

23.07

23.07

84

 

 

 

 

 

 

 

 

 

 

 

 

 

 

4) Debt to Equity Ratios

Shinhan Financial Group (Separate Basis)

(KRW billion)

 

Mar. 31, 2024

Dec. 31, 2023

Dec. 31, 2022

Debt

11,921.7

11,190.4

10,779.8

Equity

27,816.4

26,099.1

26,676.5

Debt to Equity Ratio

42.86%

42.88%

40.41%

 

 

Twenty Largest Exposures by Borrower

(KRW billion)

As of Mar. 31, 2024

Consolidated basis

Loans in Won

Loans in Foreign Currency

Securities

Guarantees and Acceptances

Others

Total Exposures

Korea Investment & Securities Co.,Ltd

2,005.0

4.6

236.6

26.9

-

2,273.2

Samsung Electronics

-

2,259.8

6.5

-

-

2,266.3

Woori Bank

1,674.8

53.9

408.0

-

-

2,136.6

Nong Hyup Bank

518.4

91.2

1,384.4

50.0

-

2,044.0

LG Display

660.2

835.1

141.9

242.2

-

1,879.4

Korea Electric Power Corporation

0.3

-

1,484.7

105.6

-

1,590.7

KEB Hana Bank

916.2

1.8

497.6

37.2

-

1,452.8

S-Oil

500.6

768.3

133.5

15.4

-

1,417.8

SK on Co.,Ltd

202.1

895.3

256.2

-

-

1,353.7

KB Bank

738.7

-

586.9

17.0

-

1,342.5

Lotte Hotel

101.2

392.5

431.1

382.1

-

1,307.0

National Agriculture Cooperative Federation

77.4

-

1,227.5

0.0

-

1,304.9

HD Hyundai Heavy Industries Co.,Ltd

70.0

15.9

0.3

1,197.6

-

1,283.8

Mirae Asset Securities

510.2

33.7

545.8

-

-

1,089.7

Samsung Heavy Industries Co.,Ltd

-

20.2

-

1,001.2

-

1,021.4

Hyundai Card

33.3

64.0

846.2

64.0

-

1,007.5

LIG NEX1 Co.,Ltd

2.5

-

149.3

847.6

-

999.4

Hyundai Steel

291.3

167.7

483.5

16.7

0.0

959.2

KT

0.9

-

895.7

43.5

-

940.1

SK Hynix

495.3

-

385.9

-

-

881.3

Total

8,798.6

5,604.1

10,101.9

4,046.9

0.0

28,551.5

Note) Some of the totals may not sum due to rounding

 

 

 

 

 

 

Exposure to ten Main Debtor Groups

(KRW billion)

As of Mar. 31, 2024

Consolidated basis

Loans in Won

Loans in Foreign Currency

Securities

Guarantees and Acceptances

Others

Total

Exposures

Samsung

218.0

3,256.1

1,443.5

1,807.6

0.0

6,725.2

SK

1,537.3

1,444.9

2,230.7

803.0

0.0

6,015.9

Lotte

1,588.8

979.6

1,962.5

789.0

0.0

5,319.8

Hyundai Motor Company

968.2

1,262.6

2,334.3

598.2

3.1

5,166.4

Hyundai Heavy Industries

446.6

115.4

168.9

2,730.0

-

3,460.9

LG

1,045.5

969.8

976.2

465.0

-

3,456.5

Hanwha

789.9

395.8

1,148.5

838.4

0.0

3,172.6

LS

279.8

863.7

194.8

1,107.9

0.4

2,446.6

Hyosung

161.0

130.0

958.4

174.3

-

1,423.7

S-oil

504.2

768.3

133.5

15.4

-

1,421.4

Total

7,539.2

10,186.2

11,551.4

9,328.7

3.4

38,609.0

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.

145.2

145.2

24.3

B

Other financial service activities n.e.c.

125.5

125.5

125.5

C

Other financial service activities n.e.c.

56.5

56.5

56.5

D

Other financial service activities n.e.c.

41.7

41.7

1.0

E

Other financial service activities n.e.c.

39.7

39.7

21.4

F

Other financial service activities n.e.c.

27.1

27.1

0.4

G

Other financial service activities n.e.c.

26.9

26.9

26.9

H

Other financial service activities n.e.c.

21.3

21.3

0.7

I

Other financial investment businesses

21.2

21.2

20.1

J

Manufacture of sections for ships

22.6

20.3

20.4

K

Other construction of civil engineering projects

20.0

20.0

20.0

L

Other financial investment businesses

20.0

20.0

15.3

M

Other financial service activities n.e.c.

20.0

20.0

0.4

N

Other financial service activities n.e.c.

19.6

19.6

1.7

O

Other financial service activities n.e.c.

19.0

19.0

17.6

P

Other financial service activities n.e.c.

17.3

17.3

10.2

Q

Office, commercial and institutional building construction

17.0

17.0

0.0

R

Sea freight water transport

15.1

15.1

10.9

S

Other financial service activities n.e.c.

15.0

15.0

0.3

T

Other financial service activities n.e.c.

13.8

13.8

10.2

Total

704.5

702.2

383.9

Notes :

▪
Consolidated basis as of Mar. 31, 2024
▪
Some of the totals may not sum due to rounding.

 

 

 

4. Independent Auditor

Audit Opinion for the last 3 years

 

1Q 2024

FY 2023

FY 2022

Independent Auditor

KPMG Samjong

Accounting Corp.

KPMG Samjong

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) 
(KRW mil.)

Details

Working hours

1Q 2024

KPMG Samjong

Accounting Corp.

410

(quarterly basis)

Review/Audit of Financial Statements

1,173

Hours

KPMG Samjong

Accounting Corp.

54

(quarterly basis)

K-IFRS Report Package Audit for Shinhan Savings Bank

131

Hours

FY 2023

KPMG Samjong

Accounting Corp.

1,187

(annualized basis)

Review/Audit of Financial Statements

11,311

Hours

KPMG Samjong

Accounting Corp.

133

(annualized basis)

K-IFRS Report Package Audit for Shinhan Savings Bank

1,207

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

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 2,351 million(excluding value-added taxes) for FY2024.

 

 

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:

-
the Risk Management Committee;
-
the Audit Committee;
-
the Remuneration Committee;
-
the Committee for Recommending Candidates for Independent Directors and Members of Audit Committee;
-
the Committee for Recommending Candidates for CEO;
-
the Environment, Social and Governance (ESG) Strategy Committee; and
-
the Committee for Subsidiary’s CEO Recommendation

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 Song Seongjoo (Chair), Lee Yong Guk and Choi Young-Gwon. 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 Kwak Su Keun (Chair), Yoon Jaewon, 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 3 outside directors, namely Choi Young-Gwon (Chair), Kwak Su Keun, Kim Jo Seol. 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 4 outside directors, namely Choi Jae Boong (Chair), Kim Jo Seol, Song Seongjoo 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 5 directors, namely Yoon Jaewon (Chair), Jin Hyun-duk, Choi Young-Gwon, Bae Hoon 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, 3outside directors and 1 Non-executive director namely Lee Yong Guk (Chair), Kim Jo Seo, Choi Jae Boong, Jin Okdong and Jung Sang Hyuk. 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 Subsidiary’s CEO Recommendation

The Committee for subsidiary’s CEO Recommendation 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, Yoon Jaewon and Lee Yong Guk. 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.

 

6. Major Shareholder and Market Price Information of our Common Shares and ADRs

Major Shareholders1) of Shinhan Financial Group as of Mar. 31, 2024

Name

No. of Common Shares owned

Ownership%2)

National Pension Service

40,947,430

8,04%

BlackRock Fund Advisors3)

29,063,012

5.71%

Employee Stock Ownership Association4)

26,115,654

5.13%

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, 509,393,214 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 26,018,646 shares owned in

    the Employee Stock Ownership accounts and 97,008 shares in the ESOA account.

 

 

 

 

Common Shares Traded on the Korea Exchange

 

 

 

 

 

 

(KRW, number of shares)

 

Oct. 2023

Nov. 2023

Dec. 2023

Jan. 2024

Feb. 2024

Mar. 2024

Price per share

High

36,400

37,000

40,150

40,850

45,300

51,500

Low

34,100

34,500

36,350

36,350

41,350

44,050

Avg.

35,276

35,961

37,897

38,041

43,289

47,640

Trading Volume

15,607,979

17,582,184

14,544,102

26,658,216

57,765,714

80,366,313

Highest Daily Trading Volume

1,396,810

1,461,987

1,779,177

6,962,512

10,298,785

23,699,462

Lowest Daily Trading Volume

435,133

404,462

387,597

356,649

1,443,410

1,218,353

American Depositary Receipts traded on the New York Stock Exchange

 

 

 

 

 

(USD, number of shares)

 

Oct. 2023

Nov. 2023

Dec. 2023

Jan. 2024

Feb. 2024

Mar. 2024

Price per share

High

26.72

28.52

31.12

30.69

33.85

37.94

Low

25.13

25.60

27.87

27.23

31.15

32.61

Avg.

26.04

27.41

29.18

28.83

32.57

35.76

Monthly Trading Volume

2,644,682

2,560,309

2,426,861

3,089,730

2,533,291

2,924,340

Highest Daily Trading Volume

211,769

301,206

435,937

253,439

407,870

361,538

Lowest Daily Trading Volume

77,726

40,806

51,496

74,314

52,046

58,745

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 and Outside 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, 1 non-executive directors and 9 outside 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

Yoon Jaewon

Aug. 29, 1970

Outside Director

March 26, 2020

March 2025

Bae Hoon

Jun. 30, 1953

Outside Director

March 25, 2021

March 2025

Lee Yong Guk

May 11, 1964

Outside Director

March 25, 2021

March 2025

Kim Jo Seol

Dec. 5, 1957

Outside Director

March 24, 2022

March 2025

Choi Jae Boong

Feb. 18, 1965

Outside Director

March 25, 2021

March 2025

Kwak Su Keun

Aug. 16, 1953

Outside Director

March 25, 2021

March 2025

Jin Hyun-duk

Sep. 10, 1955

Outside Director

March 26, 2020

March 2025

Song Seongjoo

Mar. 26, 1971

Outside Director

March 26, 2024

March 2026

Choi Young-Gwon

Jul. 16, 1964

Outside Director

March 26, 2024

March 2026

 

Note: The date on which each term will end will be the date of the general shareholders’ meeting in the relevant year.

 

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.

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.

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.

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.

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.

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.

 

Song Seongjoo has been newly appointed as our outside director since March 26, 2024. Ms. Song currently

serves as a professor of statistics at Korea University since 2012 and Director of the Korea Risk Management Society. Ms. Song was previously an Advisory Professor, Economic Statistics Division, Bank of Korea. Ms. Song received a Ph. D in Statistics from University of Chicago.

Choi Young-Gwon has been newly appointed as our outside director since March 26, 2024. Mr. Choi currently serves as an Adjunct Professor, Graduate School of Business Administration, Sogang University and Adjunct Professor, College of Business Administration, Soongsil University. Mr. Choi was previously served the chief executive officer of Woori Asset Management in 2019-2023. Mr. Choi received a Ph.D. in Financial Management from Soongsil University.

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

Chun Sang-yung

Jul. 25, 1969

Deputy President and Chief Financial Officer

Finance Management Team, Investor Relations Part, Accounting Part, Group Business Synergy Part

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, PR Team

Bang Dong-kwon

Feb. 10, 1966

Deputy President and Chief Risk Officer

Risk Management Team

 

Koh Seogheon

Sept. 27, 1968

Executive Director and Chief Strategy & Sustainability Officer

Strategic Planning Team, ESG Part, Digital Strategy Part

Park Hyun Joo

Apr. 22, 1965

Deputy President and Chief Customer Protection Part

Group Consumer Protection Part

 

Kim Junhwan

Jun. 23, 1972

Executive Director and Head of Digital Part

Group Digital Part

 

Kim Jion

May. 12, 1968

Executive Director and Chief Audit Officer

Group Audit Part

None of the executive officers have any significant activities outside Shinhan Financial Group.

 

Chun Sang-yung has been our deputy president and chief finance officer since January 1, 2024. Mr. Chun previously served as the head of group synergy division and business management division of Shinhan Financial Group. Mr. Chun received a bachelor’s degree in business management from Yeonsei 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.

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.

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.

 

Park Hyun Joo has been our deputy president and chief consumer protection part since July 1, 2023. Ms. Park previously served as the head of Consumer Protection Division at Shinhan Bank. Ms. Park graduated from Seoul Girl’s Commercial High School.

Kim Junhwan has been our executive director and head of digital part since January 1, 2024. Mr. Kim previously served as the head of digital innovation team at Shinhan Bank. Mr. Kim received a master’s degree in computer application design studies from Korea Advanced Institute of Science & Technology.

Kim Jion has been our executive director and chief audit officer since January 1, 2024. Ms. Kim previously served as the head of PRM marketing team at Shinhan Bank. Ms. 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

 

Not required to be disclosed in quarterly reports. Please refer to the business report for FY2023 submitted on March 18, 2024 for your references.

 

Compensation to Non-registered directors

 

Not required to be disclosed in quarterly reports. Please refer to the business report for FY2023 submitted on March 18, 2024 for your references.

 

Stock Options

 

Not required to be disclosed in quarterly reports. Please refer to the business report for FY2023 submitted on March 18, 2024 for your references.

 

 

Employees

 

Not required to be disclosed in quarterly reports. Please refer to the business report for FY2023 submitted on March 18, 2024 for your references.

 

 

 

8. Related Party Transactions

Loans to Subsidiaries

(KRW billion)

Loans to Subsidiaries
(in KRW bil.)

Type

Origination

Date

Maturity

Date

Lending

Rate

Beginning Balance

(Jan. 1, 2024)

Decrease

Increase

Others1)

Ending Balance

(Mar. 31, 2024)

Shinhan Card

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

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

2023-10-30

2024-04-30

4.69%

50

-

-

-

50

Loan

2023-10-30

2024-04-30

4.81%

100

-

-

-

100

Loan

2019-11-19

2025-02-04

2.79%

516

-

-

23

539

Loan

2021-05-26

2026-05-12

1.53%

39

-

-

1

40

Financial

assets at

FVPL

2022-03-17

2052-03-17

4.01%

389

-

-

4

393

 

Financial

assets at

FVPL

2023-02-14

2053-02-14

5.28%

310

-

-

-1

309

Shinhan Securities

Loan

2019-11-19

2025-02-04

2.79%

116

-

-

5

121

Loan

2020-08-20

2025-08-20

2.55%

641

-

-

29

670

Financial

assets at

FVPL

2021-06-14

-

2.93%

315

-

-

13

328

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%

258

-

-

11

269

Financial

assets at

FVPL

2020-04-22

2050-04-22

3.56%

96

-

-

1

97

Financial

assets at

FVPL

2021-07-28

2051-07-28

3.38%

139

-

-

1

140

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

2023-02-02

2024-02-01

3.86%

15

15

-

-

-

Loan

2024-02-01

2025-01-30

3.78%

-

-

10

-

10

Shinhan Venture

Loan

2023-10-26

2024-02-26

4.58%

50

50

-

-

-

Loan

2023-12-11

2024-04-11

4.08%

10

-

-

-

10

Loan

2024-02-26

2025-02-26

3.84%

-

-

50

-

50

Shinhan Asset Trust

Loan

2024-03-25

2027-03-25

3.76%

-

-

100

-

100

Total

5,304

115

160

87

5,436

 

 

 

 

 

 

 

 

 

 

 

 

 

 

9. Material Information after the reporting period

 

Announcement on Acquisition of Treasury Shares

In accordance with the resolution of the Board of Directors on April 26, 2024, the Group resolved to enter into a trust agreement to acquire treasury shares.

Total contract amount : KRW 300,000,000,000

Contract period : April 29, 2024 - October 28, 2024

Contracting party: NH Investment & Securities Co., Ltd.

Limitation on the acquisition amount of treasury shares as of April 26, 2024 : 4,313,380,875,941

 

For more detailed information, please refer to the Independent Accountant’s Audit Report, which was reported on Form 6-K on April 26, 2024.

 

Announcement on Cancellation of Shares

In accordance with the resolution of the Board of Directors on April 26, 2024, the Group resolved to cancel the treasury shares to be acquired pursuant to the announcement on Form 6-K dated April 26, 2024.

Estimated Amount to be Cancelled : KRW 300,000,000,000

Class and Number of Shares to be Cancelled : Common shares 6,896,551

Scheduled Date of Cancellation : To be determined

1) “Class and Number of Shares to be Cancelled – Common shares” and “Estimated Amount to be Cancelled” are calculated using the closing share price of common shares of SFG on April 25, 2024 (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 April 26, 2024.

 

Announcement on Disposal of Treasury Shares

In accordance with the resolution of the Board of Directors on April 26, 2024, the Group resolved to dispose the treasury shares. The details are as follows:

Class and Number of Shares to be disposed: Common shares 6,353

Scheduled disposal period: April 27, 2024 ~ May 26, 2024

Purpose of disposal: Disposal of treasure shares (fractional shares) previously acquired in a comprehensive stock exchange process, etc.

 

For more detailed information, please refer to the Independent Accountant’s Audit Report, which was reported on Form 6-K on April 26, 2024.

 

Announcement on Quarterly Cash Dividends

In accordance with the resolution of the Board of Directors on April 26, 2024, the Group resolved to pay quarterly cash dividends.

 

Total dividend amount to be paid: KRW 275,068,905,480 (KRW 540 per share)

The total number of shares subject to dividend is 509,386,862 shares

Record date: March 31, 2024

 

Shinhan AI has decided to dissolve the Company

In accordance with the resolution of the Board of Directors on May 9, 2024, the Group announced that the board of directors of Shinhan AI Co, Ltd (hereinafter “Shinhan AI”) has decided to dissolve the company. Shinhan AI will withdraw from SFG’s subsidiary as soon as the liquidation process is completed.

 

 

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.

 

(Registrant)

 

 

 

    Date: May 16, 2024

 

By:

/s/ CHUN Sang-yung

 

 

 

 

 

 

Name: CHUN Sang-yung

 

 

Title: Chief Financial Officer