Edgar Filing: SHINHAN FINANCIAL GROUP CO LTD

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SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

FORM 6-K

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

For the Month of May 2010

SHINHAN FINANCIAL GROUP CO., LTD.

(Translation of registrant’s name into English)

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

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

Form 20-F þ Form 40-F o

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

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

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

Yes o No þ

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

Summary of 2010 1Q Business Report

On May 17, 2010, Shinhan Financial Group (“SFG”) filed its 2010 1Q Business Report (the “Business Report”) with the Financial Supervisory Service of the Republic of Korea (“Korea”) pursuant to the Financial Investment Services and Capital Market Act of Korea. This is the summary of the Business Report translated into English. Non-material or previously disclosed information are omitted or abridged.

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

Table of Contents


1. Introduction of the Group
2. Business Results
3. Independent Auditor
4. Directors, Executive Shareholders Officers and Employees
5. Major and Market Price Information of Our Common Shares and ADRs
6. Related Party Transactions

Exhibit 99-1

Independent Accountant’s Review Report (Non-consolidated Financial Statements) of Shinhan Financial Group as of March 31, 2010

1. Introduction of the Group

Company History in 2009 through 2010

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

	•		June 2009 : SH&C separated from SFG after SFG consummated share transfers of SH&C

	•		Aug. 2009 : Corporate name of Good Morning Shinhan Securities changed to Shinhan Investment Corporation

	•		Sep. 2009 : Shinhan Bank Japan became an indirect subsidiary of SFG

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

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

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

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

Change in Management

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

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

Direct Subsidiaries


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


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

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

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

Indirect subsidiaries held through direct subsidiaries


		Ownership by
Direct Subsidiaries	Indirect Subsidiaries	the Parent
Shinhan Bank	Shinhan Asia Limited		100.00	%
	Shinhan Bank America		100.00	%
	Shinhan Bank Europe		100.00	%
	Shinhan Vina Bank		50.00	%
	CHB Valuemeet 2001 year 1^st Securitization		50.00	%
	CHB Valuemeet 2001 year 2^nd Securitization		50.00	%
	CHB Valuemeet 2002 year 1^st Securitization		50.00	%
	Shinhan Khmer Bank Limited		80.1	%
	Shinhan Bank Kazakhstan		100.00	%
	Shinhan Bank China Limited		100.00	%
	Shinhan AITAS		89.6	%
	Shinhan Bank Canada		100.00	%
	Shinhan Bank Japan		100.00	%


		Ownership by
Direct Subsidiaries	Indirect Subsidiaries	the Parent
	Shinhan Vietnam Bank		100.00	%

Shinhan Card	Shinhan-KT Mobile Card		50.00	%

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

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

Shinhan Capital	PETRA PEF		23.8	%


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

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

Number of Shares


	Number of Shares
Types of Shares	As of Dec. 31, 2009		As of Mar. 31, 2010
Common Shares		474,199,587		474,199,587
Redeemable Preferred Shares		38,373,459		38,373,459
Redeemable Convertible Preferred Shares		14,721,000		14,721,000

Total		527,294,046		527,294,046

2. Business Results

Operation Results

(KRW billion)


	2010			2009		2008
	(Jan.1~Mar.31)			(Jan.1~Dec.31)		(Jan.1~Dec.31)
Operating income		1,100.1			2,097.9		3,039.2
Non-operating income		30.0			126.2		223.6
Non-operating expense		45.7			244.7		261.9
Earnings before income tax		1,084.4			1,979.4		3,000.9
Income taxes		305.8			666.7		971.2
Pre-acquisition income in subsidiaries		0.0			0.0		(0.4	)
Consolidated net income		778.6			1,328.2		2,025.6
Net income in majority interest		779.0			1,305.3		2,018.6
Net income in minority interest		(0.5	)		22.9		7.0


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

Source and Use of Funds

Source of Funds


			2010							2009							2008
			(Jan.1~Mar.31)							(Jan.1~Dec.31)							(Jan.1~Dec.31)
			Average Balance			Interest		Interest		Average Balance			Interest		Interest		Average Balance			Interest		Interest
(In KRW hundred million, %)			Ratio (%)			Paid		Rate (%)		Ratio (%)			Paid		Rate (%)		Ratio (%)			Paid		Rate (%)
Source	Fund in KRW	Deposits		1,331,640	51.13		9,774		2.94		1,176,491	45.05		36,435		3.10		958,347	38.71		39,116		4.08
		CD		64,879	2.49		792		4.90		114,626	4.39		6,447		5.62		157,372	6.36		9,600		6.10
		Borrowing		71,563	2.75		445		2.49		74,090	2.84		2,519		3.40		67,277	2.72		3,332		4.95
		Call Loan		20,818	0.80		97		1.87		13,284	0.51		333		2.51		21,912	0.89		1,043		4.76
		Debenture		343,759	13.20		4,731		5.52		382,416	14.64		20,840		5.45		418,532	16.91		24,970		5.97
		Others		42,182	1.62		295		2.81		64,611	2.47		2,488		3.85		76,243	3.08		4,259		5.59
		Subtotal		1,874,841	71.98		16,134		3.45		1,825,518	69.91		69,062		3.78		1,699,683	68.66		82,320		4.84
	Fund in Foreign Currency	Deposits		113,780	4.37		397		1.40		105,507	4.04		2,187		2.07		67,431	2.72		1,791		2.66
		Borrowing		56,814	2.18		209		1.48		77,761	2.98		1,833		2.36		97,945	3.96		3,083		3.15
		Call Loan		5,624	0.22		6		0.43		11,884	0.46		367		3.09		10,913	0.44		466		4.27
		Debenture		50,988	1.96		191		1.50		52,920	2.03		970		1.83		49,316	1.99		1,897		3.85
		Others		1,336	0.05		19		5.70		2,014	0.08		57		2.83		10,938	0.44		445		4.07
		Subtotal		228,542	8.77		822		1.44		250,086	9.58		5,414		2.16		236,543	9.56		7,682		3.25
	Interest bearing funding			2,103,383	80.76		16,956		3.23		2,075,604	79.49		74,476		3.59		1,936,226	78.22		90,002		4.65
	Others	Shareholder equity		213,355	8.19		0		0.00		197,197	7.55		0		0.00		181,847	7.35		0		0.00
		Loan loss reserve		14,812	0.57		0		0.00		15,488	0.59		0		0.00		15,707	0.63		0		0.00
		Others		273,017	10.48		0		0.00		322,978	12.37		0		0.00		341,710	13.80		0		0.00
	Non-interest bearing funding			501,184	19.24		0		0.00		535,663	20.51		0		0.00		539,264	21.78		0		0.00
Total Funding				2,604,567	100.00		16,956		2.61		2,611,267	100.00		74,476		2.85		2,475,490	100.00		90,002		3.64


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

Use of Funds


			2010									2009									2008
			(Jan.1~Mar.31)									(Jan.1~Dec.31)									(Jan.1~Dec.31)
			Average Balance					Interest		Interest		Average Balance					Interest		Interest		Average Balance					Interest		Interest
(In KRW hundred million, %)			Ratio (%)					Paid		Rate (%)		Ratio (%)					Paid		Rate (%)		Ratio (%)					Paid		Rate (%)
Use	Fund in KRW	Deposits		122,483		4.70			288		0.94		110,557		4.23			1,748		1.58		73,760		2.98			2,581		3.50
		Securities		524,730		20.15			5,291		4.04		487,858		18.68			20,444		4.19		425,433		17.19			20,497		4.82
		Loans		1,319,192		50.65			19,200		5.84		605,442		23.19			32,955		5.44		1,224,471		49.46			89,602		7.32
		(Household)		622,406		23.90			8,542		5.50		605,442		23.19			32,955		5.44		574,061		23.19			40,925		7.13
		(Corporate)		696,786		26.75			10,658		6.14		703,441		26.94			41,846		5.95		650,410		26.27			48,677		7.48
		Advances for customers		334		0.01			1		1.20		819		0.03			11		1.34		397		0.02			11		2.77
		Call Loan		27,464		1.05			137		2.00		14,648		0.56			388		2.65		10,667		0.43			496		4.65
		Debenture		26,224		1.01			412		6.30		28,255		1.08			1,649		5.84		32,457		1.31			2,041		6.29
		Credit Card Receivable		138,783		5.33			8,150		23.55		118,236		4.53			31,488		26.63		100,551		4.06			27,839		27.69
		(Card Loan)		28,584		1.10			1,190		16.70		25,301		0.97			3,926		15.52		29,681		1.20			5,351		18.03
		Others		43,640		1.68			1,035		9.51		62,190		2.38			4,017		6.46		65,796		2.66			4,715		7.17
		Loan loss reserve		(35,057	)	(1.35	)		0		0.00		(35,192	)	(1.35	)		0		0.00		(30,502	)	(1.23	)		0		0.00
		Subtotal		2,167,793		83.23			34,514		6.39		2,096,254		80.28			134,546		6.42		1,903,030		76.87			147,782		7.77
	Fund in Foreign Currency	Deposits		27,782		1.07			79		1.14		28,835		1.10			214		0.74		16,573		0.67			394		2.38
		Securities		23,420		0.90			77		1.32		23,318		0.89			533		2.29		20,117		0.81			891		4.43
		Loan		126,051		4.84			952		3.03		133,681		5.12			5,185		3.88		141,759		5.73			6,873		4.85
		Call loan		12,884		0.49			13		0.40		11,541		0.44			94		0.81		8,640		0.35			235		2.72
		Bills bought		31,775		1.22			235		2.97		30,760		1.18			1,521		4.94		39,621		1.60			1,791		4.52
		Others		3,055		0.12			26		3.41		3,799		0.15			147		3.87		5,493		0.22			466		8.48
		Loan loss reserve		(2,969	)	(0.11	)		0		0.00		(2,733	)	(0.10	)		0		0.00		(2,342	)	(0.09	)		0		0.00
		Subtotal		221,998		8.52			1,382		2.50		229,201		8.78			7,694		3.36		229,861		9.29			10,650		4.63
	Interest earning funding			2,389,791		91.75			35,896		6.02		2,325,455		89.05			142,240		6.12		2,132,890		86.16			158,432		7.43
	Others	Cash		21,540		0.83			0		0.00		22,893		0.88			0		0.00		23,746		0.96			0		0.00
		PP&E		23,430		0.90			0		0.00		23,700		0.91			0		0.00		24,194		0.98			0		0.00
		Others		169,806		6.52			0		0.00		239,219		9.16			0		0.00		294,660		11.90			0		0.00
	Non-interest earning funding			214,776		8.25			0		0.00		285,812		10.95			0		0.00		342,600		13.84			0		0.00
Total use of funds				2,604,567		100.00			35,896		5.53		2,611,267		100.00			142,240		5.45		2,475,490		100.00			158,432		6.40


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

Other Financial Information

Financial information for 2010 1Q contained in this section are provisional figures.

Group BIS Ratio

(KRW million)


	Mar. 31, 2010			Dec. 31, 2009			Dec. 31, 2008
Aggregate Amount of Equity Capital (A)		23,190,127			22,572,130			18,723,461
Risk-Weighted Assets (B)		179,222,639			179,083,070			183,741,412
BIS Ratio (A/B) ¹⁾		12.94	%		12.60	%		10.19	%


1)		In accordance with the Financial Holding Company Guidelines of the Financial Service Commission (“FSC”), the Group BIS Ratio under BASEL I is used as an index for measuring capital adequacy, beginning FY2007.

Won Liquidity Ratio

(KRW million)


	2010 1Q			2009			2008¹⁾
Won Assets due within 1 months (A)		886,004			470,681			920,661
Won Liabilities due within 1 months (B)		745,555			376,446			690,397
Won Liquidity Ratio (A/B)		118.84	%		125.03	%		133.35	%


1)		2008 figures are due within 3 months

Liabilities to Equity Ratio

(KRW million)


	2010 1Q			2009			2008
Liabilities (A)		6,577,974			6,392,346			8,307,683
Equity (B)		21,154,755			20,728,361			17,605,883
Liabilities to Equity Ratio (A/B)		31.09	%		30.84	%		47.19	%

Capital Adequacy Ratio and Other Ratios of Certain Subsidiaries

(1) BIS Capital Adequacy Ratio (%) ¹⁾


	Mar. 31, 2010		Dec. 31, 2009		Dec. 31, 2008
Shinhan Bank ²⁾		16.17		15.13		13.44


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

2)		Basel II FIRB Approach was applied in calculating BIS

(2) Adjusted Equity Capital Ratio (%)


	Mar. 31, 2010		Dec. 31, 2009		Dec. 31, 2008
Shinhan Card		23.65		26.73		20.32


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

(3) Net Capital Ratio (%)


	Mar. 31, 2010		Mar. 31, 2009		Mar. 31, 2008
Shinhan Investment Corp.		558.65		678.79		783.89


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

(4) Solvency Margin Ratio (%)


	Mar. 31, 2010		Mar. 31, 2009		Mar. 31, 2008
Shinhan Life Insurance		223.10		208.60		222.74


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

Non- Performing Loans of Certain Subsidiaries ¹⁾

(1) Non- Performing Loans

(KRW million)


	Mar. 31, 2010				Dec. 31, 2009				Dec. 31, 2008
	Balance of		NPL to total		Balance of		NPL to total		Balance of		NPL to total
	NPL		Loans (%)		NPL		Loans (%)		NPL		Loans (%)
Shinhan Bank ¹⁾		1,437,617		0.97		1,158,985		0.77		1,306,316		0.85
Shinhan Card ²⁾		356,404		2.46		435,083		3.08		339,101		2.91


	Mar. 31, 2010				Mar. 31, 2009				Mar. 31, 2008
	Balance		NPL to total		Balance of		NPL to total		Balance of		NPL to total
	of NPL		Loans (%)		NPL		Loans (%)		NPL		Loans (%)
Shinhan Investment		230,228		17.90		125,366		12.14		27,738		2.35
Shinhan Life Insurance ³⁾		38,298		1.47		40,369		1.69		23,224		1.10


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

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

3)		Non-performing loans of Life Insurance Company are defined as loans past due longer than 90 days

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

(KRW million)


		Jan. 1, 2010~		Jan. 1, 2009~		Jan. 1, 2008~
		Mar. 31, 2010		Dec. 31, 2009		Dec. 31, 2008
Shinhan Bank	Allowance for Possible Loan Losses		2,804,060		2,641,918		2,661,427
	Allowance for doubtful accounts on Acceptance and Guarantees		119,809		105,629		113,669
	Allowances for Losses Related to Unused Ceiling		283,254		267,859		249,442
	Other Allowances		85,025		88,337		69,557
	Allowance for Valuation of Bonds		7,555		7,609		8,152
	Total		3,299,703		3,111,352		3,102,247
	Write-offs		25,267		1,006,941		340,942
Shinhan Card	Allowance for Possible Loan Losses		706,554		793,469		773,960
	Allowance for reward on credit card use		265,071		273,233		246,429
	Allowances for Losses Related to Unused Ceiling		504,201		488,559		485,738
	Other Allowances		6,802		12,619		22,325
	Total		1,482,628		1,567,880		1,528,452
	Write-offs		149,602		469,087		603,883


		Apr. 1, 2009~		Apr. 1, 2008~		Apr. 1, 2007~
		Mar. 31, 2010		Mar. 31, 2009		Mar. 31, 2008
Shinhan Investment Corp.	Allowance for Possible Loan Losses		168,257		110,753		33,005
	Other Allowances		21,942		—	—
	Total		190,199		110,753		33,005
	Write-offs		14,838		502		2,584
Shinhan Life Insurance	Allowance for Possible Loan Losses		37,705		31,589		22,805
	Total		37,705		31,589		22,805
	Write-offs		6,230		1,330		860

Note that the financial information contained in the following four tables (Twenty Largest Exposres by Borrower, Exposure to Main Debtor Group, Loan Concentration by Industry and Top Twenty Non-Performing Loans) have been formulated under the non-consolidated basis of Shinhan Bank.

Twenty Largest Exposures by Borrower

(KRW billion)


			Loans in						Guarantees
			Foreign		Equity				and		Total
As of Mar. 31, 2010	Loans in Won		Currency		Securities		Debt Securities		Acceptances		Exposures
Ministry of Strategy & Finance		—		—		—		11,276		—		11,276
Bank of Korea		250		—		—		6,234		—		6,484
Korea Deposit Insurance Corporation		—		—		—		2,439		—		2,439
Hyundai Heavy Industries Co., Ltd.		3		11		2		10		1,468		1,494
Hyundai Samho Heavy Industries Co., Ltd.		—		17		—		—		1,238		1,255
POSCO		—		—		990		55		—		1,045
Korea Development Bank		—		—		—		1,018		—		1,018
Samsung Heavy Industries Co., LTd.		100		117		—		—		785		1,002
STX Offshore & Shipbuilding Co., Ltd		20		7		—		—		866		893
Hynix Semiconductor		38		284		493		—		47		862
Hyundai Mipo Dockyard Co., Ltd		—		—		2		—		861		863
Kookmin Bank		—		—		—		843		—		843
Industrial Bank of Korea		—		—		—		793		—		793
Hana Bank		—		—		—		739		—		739
Woori Bank		—		—		—		727		—		727
Songdo Cosmopolitan City Development Inc.		721		—		—		—		—		721
SK Energy		58		167		2		16		391		634
Korea Electronic Power Corporation		—		—		12		619		—		631
Korea Finance Corporation		—		—		—		488		—		488
Gyeonggi Expressway		445		—		32		—		—		477
Total		1,635		603		1,533		25,257		5,656		34,684

Exposure to Main Debtor Groups

(KRW billion)


			Loans in						Guarantees
			Foreign		Equity		Debt		and		Total
As of Mar. 31, 2010	Loans in Won		Currency		Securities		Securities		Acceptances		Exposures
Hyundai Heavy Industries		24		210		5		10		3,377		3,626
Samsung		169		1,115		431		104		885		2,704
Hyundai Motors		742		871		—		157		103		1,873
SK		222		553		365		71		333		1,544
STX		123		279		39		—		875		1,316
POSCO		60		93		992		37		93		1,275
LG		224		877		0		86		60		1,247
Hynix		38		302		493		—		28		861
LS		144		326		—		108		106		684
Lotte		207		136		36		25		34		438
Total		1,953		4,762		2,361		598		5,894		15,568

Loan Concentration by Industry

(KRW million)


					Loans in Foreign
	Loans in Won				Currency				Others				Total Exposures
As of Mar. 31, 2010	Amount		Weight (%)		Amount		Weight (%)		Amount		Weight (%)		Amount		Weight (%)
Manufacturing		19,441,061		15.90		2,331,435		37.92		6,495,370		54.01		28,267,866		20.13
Retail and wholesale		11,187,152		9.15		524,333		8.53		1,545,861		12.85		13,257,346		9.44
Real Estate, leasing and service		15,354,134		12.56		517,860		8.42		397,968		3.31		16,269,962		11.58
Construction		5,029,880		4.11		57,173		0.93		700,213		5.82		5,787,266		4.12
Hotel and leisure		3,494,557		2.86		50,123		0.82		84,232		0.70		3,628,912		2.58
Finance and insurance		1,960,301		1.60		504,332		8.20		1,910,593		15.89		4,375,226		3.12
Others		6,862,578		5.61		2,162,929		35.18		892,013		7.42		9,917,520		7.06
Consumers		58,942,574		48.21		—		—		—		—		58,942,574		41.97
Total		122,272,237		100.00		6,148,185		100.00		12,026,250		100.00		140,446,672		100.00

Top Twenty Non-Performing Loans

(KRW billion)

As of Mar. 31, 2010


			Gross Principal
Borrower		Industry	Outstanding		Allowance for Loan Losses
	A	Real estate, leasing and service		25		13
	B	Construction		23		6
	C	Real estate, leasing and service		18		4
	D	Construction		16		7
	E	Manufacturing		15		7
	F	Real estate, leasing and service		14		6
	G	Transportation		14		14
	H	Other service		13		10
	I	Other service		12		9
	J	Manufacturing		10		3
	K	Real estate, leasing and service		9		0
	L	Other service		9		2
	M	Other service		8		12
	N	Manufacturing		8		6
	O	Other service		8		1
	P	Real estate, leasing and service		7		1
	Q	Manufacturing		6		1
	R	Construction		6		1
	S	Real estate, leasing and service		5		1
	T	Real estate, leasing and service		5		1
Total				231		104


F		Non-performing loans are loans that are past due longer than 90 days

3. Independent Auditor

Audit Opinion for the last 3 years


	2010 1Q	FY 2009	FY 2008
Audit Opinion	—	Unqualified	Unqualified

Compensation to the Independent Auditor for Audit and Review Services

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

Payment

Working

Year

Auditor

(KRW mil.)

Details

hours

2010 1Q

KPMG Samjong Accounting Corp.

366

Review/Audit of Financial Statements

700 hours

2009

KPMG Samjong Accounting Corp.

355

Review/Audit of Financial Statements

4,595 hours

2008

KPMG Samjong Accounting Corp.

355

Review/Audit of Financial Statements

5,106 hours

4. Directors, Executive Officers and Employees

Directors and Executive Officers

1) Executive Directors


Name	Date of Birth	Position	Service Term
Eung Chan Ra	Nov. 25, 1938	Chairman of Shinhan Financial Group Board Steering Committee Chair	3 years starting from March 24, 2010
Sang Hoon Shin	Jul. 1, 1948	President & CEO	2 years starting from March 17, 2009

2) Non-Executive Directors

Currently, 10 non-executive directors are in office, 8 of which outside directors who are nominated by our Outside Director Recommendation Committee and appointed pursuant to the approval of general shareholders’ meeting on March 24, 2010.

Our non-executive directors are as follows:


		Outside
Name	Date of Birth	Director	Sub-Committees	Service Term
Baek Soon Lee	Oct. 8, 1952	X	—	3 years starting from March 17, 2009
Shee Yul Ryoo	Sept. 5, 1938	X	Risk Management Committee chair Board Steering Committee member Compensation Committee member	1 year starting from March 24, 2010
Byung-il Kim	Sep. 1, 1945	O	Compensation Committee chair Board Steering Committee member	1 year starting from March 24, 2010
Yo Koo Kim	Mar. 23, 1950	O	Audit Committee member	1 year starting from March 24, 2010
Hui Mook Kim	Aug. 17, 1957	O	—	1 year starting from March 24, 2010
Ke Sup Yun	May 20, 1945	O	Audit Committee chair Risk Management Committee member Compensation Committee member	1 year starting from March 24, 2010
Sung Bin Chun	Jan. 21, 1953	O	Chairman of Board of Directors Board Steering Committee member Audit Committee member	1 year starting from March 24, 2010
Haeng Nam Chung	Mar. 15, 1941	O	Board Steering Committee member	1 year starting from March 24, 2010
Yoji Hirakawa	Feb. 13, 1953	O	—	1 year starting from March 24, 2010
Philippe Aguignier	Sep. 26, 1957	O	Risk Management Committee member	1 year starting from March 24, 2010

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

3) Executive Officers

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


Name	Date of Birth	Position	In charge of
Buhmsoo Choi	Aug. 8, 1956	Deputy President & Chief Financial Officer	— Finance Management Team — Investor Relations Team — Strategic Planning Team — Global Business Strategy Team — Shinhan FSB Research Institute
Sung Ho Wi	Jun. 12, 1958	Deputy President	— General Affairs Team — Business Management Team — Public Relations Team — CSR & Culture Management Team
Chan Hee Jin	Jun. 10, 1955	Deputy President	— Synergy Management Team — Information & Technology Planning Team — Audit Team
Hyo Il Lee	Sep. 26, 1959	Managing Director	— Synergy Management Team
Yee Yong Jo	Feb. 13, 1957	Managing Director	— Compliance Team
Sam Yong Lee	Jun. 11, 1953	Managing Director	— Risk Management Team

Stock Options (as of Dec 31, 2009)


	No. of		No. of Exercised		No. of Cancelled		No. of Exercisable
	Granted Options		Options		Options		Options
	(A)		(B)		(C)		(D = A - B - C)		Exercise Price
Granted in 2005		2,620,331		638,716		251,300		1,730,315		28
Granted in 2006		3,206,173		106,174		480,300		2,619,699		38
Granted in 2007		1,231,169		0		148,700		1,082,469		54
Granted in 2008		808,700		0		112,090		696,610		49
Granted in 2009		614,735		0		614,735		0		23
Total		8,481,108		744,890		1,607,125		6,129,093		—

Note)

The weighted-average exercise price of outstanding exercisable options as of Mar. 31, 2010 is KRW 39,714.

Employees

(As of Dec 31, 2009)

Number of

Total Salaries and wages

Average Payment

Employees

Average length of Service

paid in 2010

per person

(KRW million)

Total

134

1 yr 9 mths

2,800

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

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


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


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

Common Share Traded on the Korea Exchange

(KRW, number of shares)


		Oct. 2009		Nov. 2009		Dec. 2009		Jan. 2010		Feb. 2010		Mar. 2010
Price per share	High		49,000		49,550		47,350		45,700		45,050		43,250
	Low		44,500		44,150		43,200		39,250		42,200		39,650
	Avg.		47,314		47,164		45,562		42,843		43,782		42,011
Trading Volume			42,692,228		33,367,895		39,876,374		43,955,182		33,744,419		26,862,396
Highest Daily Trading Volume			3,618,069		3,764,932		4,463,172		3,844,278		2,604,479		2,273,117
Lowest Daily Trading Volume			1,126,835		821,886		982,116		1,148,972		893,737		617,996

American Depositary Shares traded on the New York Stock Exchange

(USD, number of shares)


		Oct. 2009		Nov. 2009		Dec. 2009		Jan. 2010		Feb. 2010		Mar. 2010
Price per share	High		85.20		86.42		81.83		81.37		75.26		80.31
	Low		75.65		76.50		74.28		68.42		66.37		73.61
	Avg.		80.60		81.86		78.01		75.22		72.60		77.14
Trading Volume			2,159,261		1,620,825		1,509,390		1,482,395		1,226,473		1,484,473
Highest Daily Trading Volume			251,769		143,045		141,197		253,870		104,598		438,722
Lowest Daily Trading Volume			39,650		40,060		32,140		23,393		32,649		20,054


*		1 ADR = 2 Common Shares

6. Related Party Transactions


Loans to Subsidiaries		(KRW billion)


		Origination	Maturity	Funding			Lending			Beginning						Ending
Subsidiary	Loan Type	Date	Date	Rate			Rate			Balance		Increase		Decrease		Balance
Shinhan Investment Corporation	Loan in KRW	2005-01-31	2010-07-31		4.59	%		5.25	%		70.0		—		—		70.0
Shinhan Investment Corporation	Loan in KRW	2006-07-31	2012-01-31		5.16	%		5.64	%		100.0		—		—		100.0
Shinhan Capital	Loan in KRW	2006-09-26	2011-09-26		4.91	%		4.99	%		50.0		—		—		50.0
Shinhan Capital	Loan in KRW	2007-04-13	2010-04-13		5.24	%		5.38	%		50.0		—		—		50.0
Shinhan Capital	Loan in KRW	2007-03-23	2012-03-23		5.28	%		5.48	%		50.0		—		—		50.0
Shinhan Capital	Loan in KRW	2007-06-08	2012-06-08		5.54	%		5.95	%		50.0		—		—		50.0
Shinhan Capital	Loan in KRW	2007-09-27	2010-09-27		5.91	%		6.05	%		100.0		—		—		100.0
Shinhan Capital	Loan in KRW	2007-11-27	2010-11-27		6.24	%		6.37	%		50.0		—		—		50.0
Shinhan Card	Loan in KRW	2007-11-27	2012-11-27		6.33	%		6.41	%		100.0		—		—		100.0
Shinhan Capital	Loan in KRW	2007-12-18	2010-12-18		6.69	%		6.83	%		50.0		—		—		50.0
Shinhan Card	Loan in KRW	2007-12-18	2012-12-18		6.78	%		6.86	%		50.0		—		—		50.0
Shinhan Capital	Loan in KRW	2008-01-23	2011-01-23		6.46	%		6.60	%		50.0		—		—		50.0
Shinhan Capital	Loan in KRW	2008-01-23	2013-01-23		6.51	%		6.60	%		50.0		—		—		50.0
Shinhan Card	Loan in KRW	2008-02-21	2011-02-21		5.51	%		5.66	%		150.0		—		—		150.0
Shinhan Card	Loan in KRW	2008-03-12	2011-03-12		5.71	%		5.84	%		200.0		—		—		200.0
Shinhan Capital	Loan in KRW	2008-03-12	2011-03-12		5.71	%		5.84	%		50.0		—		—		50.0
Shinhan Card	Loan in KRW	2008-06-27	2011-06-27		6.41	%		6.53	%		200.0		—		—		200.0
Shinhan Card	Loan in KRW	2008-07-31	2011-07-31		6.76	%		6.90	%		100.0		—		—		100.0
Shinhan Capital	Loan in KRW	2008-07-31	2011-07-31		6.76	%		6.90	%		50.0		—		—		50.0
Shinhan PE	Loan in KRW	2009-08-13	2010-08-13		3.93	%		3.99	%		5.0		—		—		5.0
Total	—	—	—		—			—			1,575.0		—		—		1,575.0

SIGNATURES

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


	SHINHAN FINANCIAL GROUP CO., LTD.
	By	/s/ Buhmsoo Choi
	Name: Buhmsoo Choi
	Title: Chief Financial Officer

Date : May 17, 2010