Edgar Filing: SHINHAN FINANCIAL GROUP CO LTD

SHINHAN FINANCIAL GROUP CO., LTD.

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 2006

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):

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 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 2006 1Q Business Report

On May 15, 2006, Shinhan Financial Group (“SFG”) filed the 2006 1Q business report (the “Business Report”) with the Financial Supervisory Service of the Republic of Korea (“Korea”) pursuant to the Securities and Exchange 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 Accountant
4. Directors, Executive Officers and Employees
5. Activities of Board of Directors and Sub-committees
6. Market Price Information of Our Common Shares and ADRs
7. Related Party Transactions
Exhibit 99 Independent Accountant's Review Report (Non Consolidated Financial Statements)

1. Introduction of the Group

Company History in 2006 1Q

	§		April 1, 2006

			The integrated Shinhan Bank was launched and CHB Card merged with Shinhan Card

	§		April 11, 2006

			SFG’s largest shareholder was changed from KDIC to BNP Paribas Group (owning 33,682,104 common shares, 9.38% of total shares)

Principal Subsidiaries under Korean Law as of April 1, 2006

Direct Subsidiaries


Subsidiaries	Ownerships by SFG
Shinhan Bank ¹⁾		100.0	%
Good Morning Shinhan Securities ²⁾		100.0	%
Shinhan Life Insurance ³⁾		100.0	%
Shinhan Card		100.0	%
Shinhan Capital		100.0	%
Shinhan BNP Paribas ITMC		50.0	%
Jeju Bank ⁴⁾		62.4	%
SH&C life Insurance		50.0	%
Shinhan Macquarie Financial Advisory		51.0	%
Shinhan Credit Information		100.0	%
Shinhan Private Equity		100.0	%

1)		As of April 1, 2006, Chohung Bank merged with Shinhan Bank, and the name of the remaining integrated bank is ‘Shinhan Bank.’

2)		Good Morning Shinhan Securities was delisted from the Korea Exchange on January 5, 2005.

3)		Shinhan Life Insurance joined Shinhan Financial Group as the Group’s subsidiary on December 13, 2005.

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

Indirect subsidiaries held through direct subsidiaries


		(As of April 1, 2006)
		Ownerships by
Direct Subsidiaries	Indirect Subsidiaries	the Parent
Shinhan Bank	Shinhan Data System		100.0	%
	Shinhan Finance Ltd.(Hong Kong)		100.0	%
	SH Asset Management Co. Ltd ¹⁾		79.8	%
	Shinhan Asia Limited ¹⁾		100.0	%
	Shinhan Bank America ¹⁾		100.0	%
	Shinhan Bank Europe Gmbh ¹⁾		100.0	%
	Shinhan Vina Bank ¹⁾		50.0	%
	CHB Valuemeet 2001 year 1^st Securitization		50.0	%
	CHB Valuemeet 2001 year 2^nd Securitization		50.0	%
	CHB Valuemeet 2002 year 1^st Securitization		50.0	%

Good Morning	Good Morning Shinhan Securities Europe		100.0	%
Shinhan Securities	Good Morning Shinhan Securities USA		100.0	%

Shinhan Private Equity	Shinhan NPS Private Equity Fund 1		5.0	% ²⁾


1)		Names of subsidiaries previously owned by Chohung Bank were changed accordingly after the integration with Shinhan Bank.

2)		Shinhan Financial Group currently owns 36.7% of Shinhan Private Equity

Number of Shares by type

The table below shows the number of issued and outstanding shares of the Group as of March 31, 2006


			Total amount of
Types of Shares	Number of Shares		par value(KRW)
Common Shares		359,207,313		1,796,036,565,000
Redeemable Preferred Shares		52,583,961		262,919,805,000
Redeemable Convertible Preferred Shares		22,360,301		111,801,505,000

Total		434,151,575		2,170,757,875,000

Employee Stock Ownership Plan (ESOP)

(1) Contribution to ESOA (Employee Stock Ownership Association)

Contribution Amount

Contributed to

Contribution Date

(KRW)

Contributor

Use of money

Association Accounts

Feb. 28, 2006

542,407,000

Shinhan Card

Stock Purchase

March 3, 2006

802,088,300

Shinhan Capital

Stock Purchase

March 6, 2006

10,641,000,000

Shinhan Bank

Stock Purchase

March 14, 2006

212,552,860

SFG

Stock Purchase

Sub-total

12,198,048,160

—

Employee Accounts

—

Sub-total

—

Total

12,198,048,160

—

(2) Changes in ESOA Share Ownership ¹⁾

(Unit: shares)


			Beginning
			Balance						Ending Balance
	Share type		(Jan.1, 2006)		Increase²⁾		Decrease³⁾		(March 31, 2006)
Association Accounts	Common Shares			1,942,413		—		—		1,942,413
Employee Accounts	Common Shares			843,270		318,350		10,784		1,153,836
Total		—		2,785,683		318,350		10,784		3,093,249


1)		Shinhan Financial Group introduced the Employee Stock Ownership Plan (ESOP) on December 5, 2002 and currently, Shinhan Financial Group, Shinhan Bank and Shinhan Capital participate in the ESOP.

2)		The increase is attributable to the purchasing of ESOP by SFG, Shinhan Bank, Shinhan Card, and Shinhan Capital

3)		The decrease is attributable to the retirement of employees and returning of ESOP at maturity.

(3) ESOA Share Ownership per each company

(As of March 31, 2006, Unit: shares)


Company	Association Accounts		Employee Accounts		Total Balance
Shinhan Financial Group		36,672		13,634		50,306
Shinhan Bank		1,887,334		848,983		2,736,317
Chohung Bank		—		207,436		207,436
Shinhan Capital		18,407		21,576		39,983
Shinhan Card		—		23,649		23,649
Shinhan Life Insurance		—		31,386		31,386
SH&C Life Insurance		—		652		652
Shinhan Credit Information		—		576		576
Shinhan Data System		—		2,944		2,944
Total		1,942,413		1,150,836		3,093,249

2. Business Results

Operational Results


			(in millions of Korean Won)
	2006 1Q		2005		2004
	(Jan. 1~Mar. 31)		(Jan.1~Dec.31)		(Jan.1~Dec.31)
Operating Revenue		517,130		1,886,806		1,224,147
Gain using equity method of accounting		495,902		1,789,621		1,108,952
Interest income		20,749		95,812		114,264
Other income		479		1,373		931
Operating Expense		40,859		154,873		147,638
Loss using equity method of accounting		184		1,047		212
Operating Income		476,271		1,731,933		1,076,509

Source and Use of Funds

Source of Funds


					(in millions of Korean Won)
	2006 1Q				2005				2004
	(Jan.1~Mar.31)				(Jan.1~Dec.31)				(Jan.1~Dec.31)
	Average		Ratio		Average		Ratio		Average		Ratio
	Balance ¹⁾		(%)		Balance ¹⁾		(%)		Balance ¹⁾		(%)
Stockholders’ Equity		9,813,976		77.52		8,463,137		77.36		6,770,562		74.00
Capital Stock		2,170,758		17.15		2,100,646		19.20		2,012,812		22.00
Capital Surplus		4,360,112		34.44		3,846,957		35.16		3,485,465		38.10
Retained Earnings		2,654,750		20.97		2,158,881		19.73		1,130,293		12.35
Capital Adjustment		628,356		4.96		356,653		3.26		141,992		1.55
Borrowings		2,845,360		22.48		2,477,425		22.64		2,378,244		26.00
Debentures		2,090,850		16.52		2,090,759		19.11		2,017,816		22.06
Other liabilities		754,510		5.96		386,666		3.53		360,428		3.94
Total		12,659,336		100.00		10,940,562		100.00		9,148,806		100.00


1)		The Average Balance was calculated by averaging the ending balance of each quarter.

Use of Funds


					(in millions of Korean Won)
	2006 1Q				2005				2004
	(Jan.1~Mar.31)				(Jan.1~Dec.31)				(Jan.1~Dec.31)
	Average		Ratio		Average		Ratio		Average		Ratio
	Balance ¹⁾		(%)		Balance ¹⁾		(%)		Balance ¹⁾		(%)
Investments on equity stock		10,890,192		86.02		9,060,179		82.81		7,100,773		77.61
Shinhan Bank		4,428,700		34.98		4,198,207		38.37		3,709,669		40.55
Chohung Bank		4,292,884		33.91		3,393,190		31.01		2,411,868		26.36
Good Morning Shinhan Securities		907,845		7.17		867,403		7.93		610,171		6.67
Shinhan Life Insurance		750,663		5.93		147,558		1.35		—		—
Shinhan Card		229,452		1.81		197,754		1.81		162,378		1.77
Shinhan Capital		157,819		1.25		139,108		1.27		112,775		1.23
Shinhan BNP Paribas ITMC		24,668		0.19		23,139		0.21		22,435		0.25


					(in millions of Korean Won)
	2006 1Q				2005				2004
	(Jan.1~Mar.31)				(Jan.1~Dec.31)				(Jan.1~Dec.31)
	Average		Ratio		Average		Ratio		Average		Ratio
	Balance ¹⁾		(%)		Balance ¹⁾		(%)		Balance ¹⁾		(%)
E-Shinhan		—		—		2,197		0.02		2,617		0.03
Shinhan Macquarie FA		2,524		0.02		1,641		0.01		1,159		0.01
Jeju Bank		62,270		0.49		57,606		0.53		49,418		0.54
Shinhan Credit Information		8,589		0.07		8,198		0.07		4,628		0.05
SH&C Life Insurance		16,132		0.13		14,879		0.14		13,655		0.15
Shinhan Private Equity		8,649		0.07		9,300		0.09		1,958		0.02
Investment on Bonds		—		—		—		—		—		—
Loans		1,429,001		11.29		1,667,537		15.24		1,953,788		21.36
Fixed Assets		1,136		0.01		1,296		0.01		1,508		0.02
Intangible Assets		1,054		0.01		1,030		0.01		477		0.01
Cash Deposit in bank		303,266		2.40		177,313		1.62		55,370		0.61
Other Assets		34,689		0.27		33,207		0.31		36,893		0.40
Total		12,659,336		100.00		10,940,562		100.00		9,148,809		100.00


1)		The Average Balance was calculated by averaging the ending balances of each quarter.

Other Financial Information

Requisite Capital Ratio


				(in billions of Korean Won)
	2006 1Q			2005			2004
Aggregate Amount of Equity Capital (A)		11,601.0			11,434.0			9,867.9
Requisite Capital (B)		8,735.7			8,609.1			7,625.3
Requisite Capital Ratio (A/B) ¹⁾		132.8	%		132.81	%		129.41	%


1)		Under the guidelines issued by the Financial Supervisory Commission applicable to financial holding companies, we, at the holding company level, are required to maintain a minimum requisite capital ratio of 100%.

Won Liquidity Ratio


				(in billions of Korean Won)
	2006 1Q			2005			2004
Won Assets due within 3 months (A)		799.5			341.5			221.3
Won Liabilities due within 3 months (B)		792.5			332.7			212.1
Won Liquidity Ratio (A/B) ¹⁾		100.9	%		102.65	%		104.36	%


1)		Under the guidelines issued by the Financial Supervisory Commission, we, at the holding company level, are required to maintain a Won liquidity ratio of not less than 100%.

Liabilities to Equity Ratio


	(in billions of Korean Won)
	2006 1Q			2005			2004
Liabilities (A)		3,365.6			2,325.1			2,325.0
Equity (B)		9,490.9			10,137.0			7,747.3
Liabilities to Equity Ratio (A/B)		36.4	%		22.94	%		30.01	%

Capital Adequacy Ratio and Other Ratios of Certain Subsidiaries

(1) Total Capital Adequacy Ratio (%)


	2006 1Q		2005		2004
Shinhan Bank		12.7		12.23		11.94
Chohung Bank		10.8		10.94		9.40
Jeju Bank		10.6		11.71		10.91

* The Total Capital Adequacy Ratio is computed in accordance with the guidelines issued by the Financial Supervisory Commission for commercial banks. Under these guidelines, commercial banks are required to maintain a minimum capital adequacy ratio of 8%.

(2) Net Capital Ratio (%)


	Mar.31 2006		Mar.31 2005		Mar.31 2004
Good Morning Shinhan Securities		558.6		629.22		480.69

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

(3) Solvency Margin Ratio (%)


	Mar.31 2006		Mar.31 2005		Mar.31 2004
Shinhan Life Insurance		230.8		—		—

* Shinhan Life Insurance joined Shinhan Financial Group as the Group’s subsidiary as of December 13, 2005

(4) Adjusted Equity Capital Ratio (%)


	Mar.31 2006		2005		2004
Shinhan Card		19.35		17.68		16.48

* 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 the Financial Supervisory Commission for credit card companies. Under these guidelines, Shinhan Card is required to maintain a minimum adjusted equity capital ratio of 8%.

(5) Non Performing Loans


	(in billions of Korean Won)
									Dec.31. 2004
									(March 31, 2005 for GMS
	Mar.31.2006				Dec.31. 2005				Securities)
	Balance of		NPL to total		Balance of		NPL to total		Balance of		NPL to total
	NPL		Loans (%)		NPL		Loans (%)		NPL		Loans (%)
Shinhan Bank ¹⁾		424.5		0.74		363.5		0.64		434.4		0.84
Chohung Bank ¹⁾		501.1		1.08		531.3		1.15		814.1		1.89
Jeju Bank ¹⁾		19.4		1.35		16.3		1.15		30.3		2.33
GMS Securities ²⁾		26.9		5.71		25.1		5.12		30.7		11.75
Shinhan Card ³⁾		30.6		2.73		33.4		2.71		37.5		4.46


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

2)		Under the guidelines of the Financial Supervisory Service, every securities company shall classify its loans into five categories: “normal,” “precautionary,” “substandard,” “doubtful” and “estimated loss.” Under the Group’s internal measures, non-performing loans of Good Morning Shinhan Securities includes loans classified as “substandard,” “doubtful,” and “estimated loss.”

3)		Under the guidelines of the Financial Supervisory Service, every 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 Card includes loans classified as “substandard,” “doubtful” and “estimated loss.”

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


(in billions of Korean Won)
			Jan. 1, 2006~		Jan. 1, 2005~		Jan. 1, 2004~
			Mar. 31, 2006		Dec. 31, 2005		Dec. 31, 2004
Shinhan Bank	Loan Loss	Domestic		636.8		627.3		663.0
	Allowance	Overseas		54.6		56.3		80.5
		Total		691.4		683.6		743.5
	Write-offs			14.4		108.2		232.6
Chohung	Loan Loss	Domestic		1,020.3		861.2		955.5
Bank	Allowance	Overseas		26.7		27.6		51.2
		Total		1,047.0		888.8		1,006.7
	Write-offs			73.7		571.5		1,400.2
Jeju Bank	Loan Loss	Domestic		24.4		25.3		32.2
	Allowance	Overseas		—		—		—
		Total		24.4		25.3		32.2
	Write-offs			4.0		19.1		24.7
GM Shinhan Securities ¹⁾	Loan Loss	Domestic		28.9		30.9		30.9
	Allowance	Overseas		—		—		—
		Total		28.9		30.9		30.9
	Write-offs			2.3		1.9		—


(in billions of Korean Won)
			Jan. 1, 2006~		Jan. 1, 2005~		Jan. 1, 2004~
			Mar. 31, 2006		Dec. 31, 2005		Dec. 31, 2004
Shinhan Card	Loan Loss	Domestic		41.9		46.3		49.8
	Allowance	Overseas		—		—		—
		Total		41.9		46.3		49.8
	Write-offs			17.8		86.2		233.2


1)		The fiscal year of Good Morning Shinhan Securities ends on March 31 of each year. Accordingly, the relevant periods for Good Morning Shinhan Securities are adjusted as follows: (i) from April 1, 2005 to March 31, 2006, (ii) from April 1, 2004 to March 31, 2005, and (iii) from April 1, 2003 to March 31, 2004.

3. Independent Accountant

Audit Opinion for the last 3 years

2006 1Q

FY 2005

FY 2004

Audit Opinion

—

Unqualified

Compensation to the Independent Auditor for Audit and Review Services

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


Year	Auditor	Payment (KRW)		Working hours
2006 1Q	KPMG Samjong Accounting Corp.		304,000,000	720 hours
2005	KPMG Samjong Accounting Corp.		288,000,000	3,073 hours
2004	KPMG Samjong Accounting Corp.		300,000,000	2,504 hours

Compensation for Services Other than Audit and Review

The following is a description of the fees and commissions paid to our independent auditor for the services set forth below for the last three years.


Year	Month	Service description	Payment
2006 1Q	2005 Dec.	Audit of the Financial Statements based on US GAAP for FY2005		KRW 1,888,000,000
2005	Jan. Sept.	Audit of the Financial Statements based on US GAAP for FY2004 Settlement of taxation affairs		USD 2,000,000 KRW 15,000,000
2004	Jan.	Consulting services for disclosure control and procedure & Internal control system		KRW 1,375,000,000

4. Directors, Executive Officers and Employees

Directors and Executive Officers

1) Executive Directors

Our executive directors are as follows as of March 21, 2006:


Name	Date of Birth	Position	Service Term
Eung Chan Ra	Nov.25, 1938	Chairman of BOD Head of the Board Steering Committee	3 years starting from March 25, 2004
In Ho Lee	Nov. 2, 1943	President & CEO Board Steering Committee member	3 years starting from March 25, 2004
Young Hwi Choi	Oct. 28, 1945	Executive Director	3 years starting from March 25, 2004

2) Non-Executive Directors

Currently, 12 non-executive directors are in office. Of the twelve members, 10 are outside directors, nominated by our Outside Director Recommendation Committee and appointed pursuant to the approval of general shareholders’ meeting on March 21, 2006.

Our non-executive directors are as follows:


Name	Date of Birth	Current Position	Service Term
Young Seok Choi	Jul. 2, 1929	Non-Executive Directors, Audit Committee member	3 years starting from March 25, 2004
Yong Woong Yang	Aug. 4, 1948	Non-Executive Directors	3 years starting from March 25, 2004
Il Sup Kim	Jul.1, 1946	Outside Director Head of Audit Committee	1 year starting from March 21, 2006
Sang Yoon Lee	Sep.13, 1942	Outside Director Board Steering Committee member Audit Committee member	1 year starting from March 21, 2006
Yoon Soo Yoon	Mar. 5, 1946	Outside Director	1 year starting from March 21, 2006
Shee Yul Ryoo	Sep. 5, 1938	Outside Director Board Steering Committee member	1 year starting from March 21, 2006
Byung Hun Park	Sep. 10, 1928	Outside Director Board Steering Committee member	1 year starting from March 21, 2006
Young Hoon Choi	Nov. 8, 1928	Outside Director	1 year starting from March 21, 2006
Si Jong Kim	Apr. 16, 1937	Outside Director Audit Committee member	1 year starting from March 21, 2006
Philippe Reynieix	Jun. 24, 1949	Outside Director	1 year starting from March 21, 2006
Haeng Nam Chung	Mar. 15.1941	Outside Director	1 year starting from March 21, 2006
Myoung Soo Choi	Aug. 5 1957	Outside Director	1 year starting from March 21, 2006

For personal profiles of the outside directors, please refer to 6-K filed on February 24, 2006 .

3) Executive Officers

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


Name	Date of Birth	Position	Taking Charge of
Jae Woo Lee	July 2, 1950	Managing Director (Chief Operating Officer)	General Affairs Team, Public Relations Team, and Human Resources Team
Byung Jae Cho	Jan. 6, 1951	Managing Director (Chief Financial Officer)	Finance Planning Team, Risk Management Team, and Investor Relations Team
Jin Won Seo	April 20, 1951	Managing Director (Chief Strategy Officer)	Strategic Planning Team, Future Strategy & Management Team, and Information & Technology Planning Team,
Jae Woon Yoon	July 22, 1951	Managing Director (Group Synergy Officer)	Joint Procurement Team, Synergy Management Team, and Audit & Compliance Team

Stock Options


		Number of Changes
				No. of
		No. of		Exercised		No. of Cancelled		No. of Exercisable
Guarantee		Granted Options		Options		Options		Options
Granted on 2002	Management, Head of Department		864,576		216,511		0		648,065
Granted on 2003	Management, Head of Department		1,020,206		240,803		11,390		768,013
Granted on 2004	Management, Head of Department		1258,923		20,000		15,200		1,223,723
Granted on 2005	Management, Head of Department, Outside Directors		2,695,200		0		68,200		2,627,000
Granted on 2006	Management, Head of Department, Outside Directors		3,296,200		0		0		3,296,200
Total			9,135,105		447,314		94,790		8,563,001

Employees


(As of March 31, 2006)
			Total Salaries and wages paid	Average Payment per
	Number of	Average length of	in 2006 1Q	person in 2006 1Q
	Employees	Service	(in mil. of Korean Won)	(in mil. of Korean Won)
Male	75	2 years and 6 months	1,469	20
Female	22	2 years and 2 month	187	9
Total	97	2 years and 4 months	1,656	17

5. Activities of Board of Directors and sub-committees for the year 2005~2006

Meetings of Board of Directors


	Date	Agenda
1	Jan. 12, 2006	1. Appointment of Outside Director Recommendation Committee members
		- Eung Chan Ra, Byung Hun Park, Young Hoon Choi, Shee Yul Ryoo, Yoon Soo Yoon	Approved
		2. Appointment of management (non-director)
		- Baek Soon Lee (term ending: March 31, 2006)	Approved
2	Feb. 6, 2006	1. Partial alteration of the articles of association	Approved
		2. Closing of the 5th FY(2005)	Approved
3	Feb. 16, 2006	1. Convening of the 5th General Meeting of Shareholders - 10:00 AM, March 21, 2006	Approved
		2. Remuneration levels for Directors
		- KRW 5 billion	Approved
		3. Stock option grant to executives, employees and outside directors of the Group and Subsidiaries
		- 1,418,900 shares for executives and management, 40,000 shares for outside directors, and up to 2,098,600 shares for employees	Approved
		4. Alterations in previous contract concerning the granting of Stock Options	Approved
		5. Alterations in regulations concerning the ‘Guide to provide and use Personal Credit Information’	Approved
		6. Appointment of management (non-director)
		- Jin Won Suh (term ending: January 12, 2008)	Approved
		7. Appointment of corporate advisor
		- advisor: Byung Joo Kim	Approved
4	Mar. 21, 2006	1. Appointment of Board steering Committee members - Eung Chan Rha, In Ho Lee, Byung Hun Park, Shee Yul Ryoo, Sang Yoon Lee	Approved
		2. Confirmation of Director Remuneration
		- Confirmation of individual director remuneration within the limitations set by the Board of Directors	Approved
5	May 10, 2006	1. Appointment of Risk Management Committee members - Sheel Yul Ryoo, Yoon Soo Yoon, Reynieix	Approved
		2. Appointment of Compensation Committee members
		- Il Sup Kim, Shee Yul Ryoo, Yoon Soo Yoon, Sang Yoon Lee	Approved
		3. Approval of Limitation of corporate bond issuance for the second half of 2006
		- Issuance limited to KRW 1,100 billion (including USD 100 Mil)	Approved
		4. Enactment of Internal Control over Financial Reporting etc.
		- Settlement of standards and processes of Internal Control over Financial Reporting based on internal accounting regulations and SOX404.	Approved
		5. Alterations in regulations concerning the exercising of stock options granted in 2004
		- retirement of employees within two years after the granting of stock options due to a transfer to a subsidiary company is seen as a continuation of services	Approved
		6. Partial cancellation of stock options granted on 2004 and 2005
		-6 people, 10,400 shares	Approved

Meetings of Audit Committee


	Date	Agenda
1	Feb. 16, 2006	1. Audit Results for the 5^th Fiscal Year	Approved
		- Confirmation of Audit Results for the 5^th FY and Submission of Audit Report
		2. Appointment of Independent Auditors for US GAAP, for Shinhan Life Insurance	Approved
		- KPMC Samjong Accounting Corp. was appointed
		3. Evaluation of the Operation Status of the Internal Accounting Control System for the Year 2005	Approved


	Date	Agenda
		- The internal accounting control system is properly operated.
		- The proper operation of the internal accounting control system of the major subsidiaries are to be reported separately
		4. Evaluation of the Internal Monitoring System	Approved
		- The internal monitoring system is properly operated.
		5. Ratification of the Company and its Subsidiaries’ Non-audit Contracts	Approved
		1) Examination of financial statements for the acquisition process of Shinhan Life Insurance (Shinhan Financial Group — Samjong Accounting Corp.)
		2) Examination of financial statements for the acquisition process of Shinhan Life Insurance (Shinhan Life Insurance — Samjong Accounting Corp.)
		3) Income Tax Advisory, Tax Adjustment (Shinhan Bank New York Branch-KPMG New York)
		4) Auditing and Tax adjustment concerning PEF Shinhan National Pension
		5) Comfort Letters regarding the issuance of bonds
		(Shinhan Bank with Samjong Accounting Corp.)
		6. Auditing Results of the 5th Annual Shareholders’ Meeting	Approved
		- Results found to be appropriate
2	Mar. 21, 2006	1. Approval of auditing plans for 2006	Approved
		- Auditing plans for Shinhan Financial Group and subsidiary companies approved
		2. Approval of auditing fees of K-GAAP	Approved
		- Auditing fees considered appropriate for Korean accounting standards
3	May 10, 2006	1. Appointment of Audit Committee chairperson
		- Il Sup Kim appointed as chairperson	Approved

Meetings of Outside Director Recommendation Committee


	Date	Agenda
1	Jan. 12, 2006	1. Appointment of Head of Outside Director Recommendation Committee	Approved
		- Mr. Byung Hun Park
2	Feb. 16, 2006	1. Recommendation of Outside Director Candidates
		- Outside director candidates: Byung Hun Park, Si Jong Kim, Young Hoon Choi, Myung Soo Choi, Hang Nam Jung and Philippe Reynieix (6 candidates)
		- Outside director candidates with professional expertise: Il Sup Kim,
		Sang Yoon Lee, Yoon Soo Yoon, and Shee Yul Ryoo (4 candidates)	Approved

6. Market Price Information of our Common Shares and ADRs

Common Share Traded on the Korea Exchange


(in Korean Won or number of shares)
		Nov. 2005		Dec. 2005		Jan. 2006		Feb. 2006		Mar. 2006		April 2006
Price per share	High		41,000		43,100		42,300		41,450		43,700		47,100
	Low		36,300		39,000		37,700		38,250		36,500		44,200
Trading Volume			29,170,702		25,024,286		24,454,664		22,609,271		42,326,382		47,943,771

American Depositary Shares traded on the New York Stock Exchange

Shinhan Financial Group listed its American Depositary Shares on the New York Stock Exchange on September 16, 2003.


(in US Dollars or number of shares)
		Nov. 2005		Dec. 2005		Jan. 2006		Feb. 2006		Mar. 2006		April 2006
Price per share	High		78.87		84.71		86.40		86.78		88.10		99.02
	Low		69.75		75.55		77.00		78.66		74.05		91.15
Trading Volume			501,700		468,100		695,300		670,300		842,800		414,500

7. Related Party Transactions

Loans to Subsidiaries

(As of March 31, 2006)


										Beginning					Ending
		Origination		Funding			Lending			Balance					Balance
Borrower	Loan Type	date	Maturity date	Rate			Rate			Jan. 1 2005		Increase	Decrease		Dec. 31, 2005
GMS Securities	Loans in KRW	2005-01-31	2010-07-31		4.59	%		5.25	%		700	—		—		700
Shinhan Bank	Privately Placed Bonds	2001-12-21	2008-03-21		7.12	%		7.42	%		500	—		—		500
Shinhan Card	Loans in KRW	2003-01-24	2006-01-24		5.19	%		5.50	%		500	—		500	—
Shinhan Card	Loans in KRW	2003-02-26	2006-02-26		4.99	%		5.29	%		2,000	—		2,000	—
Shinhan Card	Loans in KRW	2003-04-23	2009-04-23		5.47	%		6.28	%		1,000	—		—		1,000
Shinhan Card	Loans in KRW	2003-05-23	2006-05-23		5.29	%		5.59	%		500	—		—		500
Shinhan Card	Loans in KRW	2003-06-24	2006-06-24		5.43	%		5.73	%		1,500	—		—		1,500
Shinhan Card	Loans in KRW	2003-10-24	2006-10-24		4.63	%		4.95	%		1,000	—		—		1,000
Shinhan Card	Loans in KRW	2005-03-18	2007-03-18		4.13	%		4.49	%		500	—		—		500
Shinhan Card	Loans in KRW	2005-03-18	2008-03-18		4.23	%		4.54	%		500	—		—		500
Shinhan Capital	Loans in KRW	2002-03-29	2007-04-04		7.47	%		8.12	%		200	—		—		200
Shinhan Capital	Loans in KRW	2002-07-29	2007-07-29		6.30	%		6.65	%		200	—		—		200
Shinhan Capital	Loans in KRW	2002-11-21	2007-11-21		5.88	%		6.18	%		200	—		—		200
Shinhan Capital	Loans in KRW	2002-12-16	2007-12-16		5.96	%		6.22	%		200	—		—		200
Shinhan Capital	Loans in KRW	2003-01-24	2006-01-24		5.19	%		5.54	%		200	—		200	—


										Beginning					Ending
		Origination		Funding			Lending			Balance					Balance
Borrower	Loan Type	date	Maturity date	Rate			Rate			Jan. 1 2005		Increase	Decrease		Dec. 31, 2005
Shinhan Capital	Loans in KRW	2003-05-23	2006-05-23		5.29	%		5.59	%		500	—		—		500
Shinhan Capital	Loans in KRW	2003-06-24	2008-06-24		5.69	%		5.95	%		300	—		—		300
Shinhan Capital	Loans in KRW	2003-07-24	2006-07-24		5.55	%		5.85	%		300	—		—		300
Shinhan Capital	Loans in KRW	2003-07-24	2008-07-24		5.87	%		6.13	%		200	—		—		200
Shinhan Capital	Loans in KRW	2004-03-24	2007-03-24		4.76	%		5.16	%		300	—		—		300
Shinhan Capital	Loans in KRW	2004-03-24	2009-03-24		5.11	%		5.93	%		200	—		—		200
Shinhan Capital	Loans in KRW	2004-06-25	2009-06-25		4.93	%		5.22	%		500	—		—		500
Shinhan Capital	Loans in KRW	2005-01-31	2008-01-31		4.21	%		4.58	%		300	—		—		300
Shinhan Capital	Loans in KRW	2005-03-18	2007-03-18		4.23	%		4.49	%		500	—		—		500
Shinhan Capital	Loans in KRW	2005-05-09	2008-05-09		3.99	%		4.33	%		500	—		—		500
Shinhan Capital	Loans in KRW	2005-12-16	2008-12-16		5.48	%		5.67	%		400	—		—		400
Jeju Bank	Loans in KRW	2005-12-28	2011-01-28		5.74	%		6.43	%		200	—		—		200
Shinhan Capital	Loans in foreign currency	2003-12-30	2006-12-30	3M Libor +70bp			3M Libor +90bp				304	—		11		293
Shinhan Capital	Loans in foreign currency	2004-07-15	2007-06-15	3M Libor +70bp			3M Libor +90bp				405	—		15		390
Jeju Bank ^{1) 2)}	Privately Placed Bonds	2004-05-07	2007-03-30		6.26	%		—			31	—		31	—
Jeju Bank ²⁾	Privately Placed Bonds	2002-05-20	2008-01-20		7.25	%		8.14	%		200	—		200	—


										Beginning						Ending
		Origination		Funding			Lending			Balance						Balance
Borrower	Loan Type	date	Maturity date	Rate			Rate			Jan. 1 2005		Increase		Decrease		Dec. 31, 2005
Shinhan Card	Loans in KRW	2006-01-24	2009-01-24		5.24	%		5.41	%				500				500
Shinhan Capital	Loans in KRW	2006-01-24	2009-01-24		5.24	%		5.41	%				500				500
Shinhan Card	Loans in KRW	2006-02-27	2009-02-27		5.07	%		5.23	%				1,000				1,000
Total											14,840		2,000		2,957		13,883

Note 1) Privately placed bonds, which were under complete ownership of Shinhan Bank when first issued in June 30, 2001, were acquired by SFG as of May 7, 2004 (In the above case interest rates have been omitted as transfer and acquisition took place with internal reserved funds).

Note 2) All privately placed bonds of Jeju Bank were redeemed as of March 13, 2006.

Exhibit 99 Independent Accountant’s Review Report (Non Consolidated Financial Statements) of Shinhan Financial Group as of March 31, 2006.

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/ Byung Jae Cho

		Name: Byung Jae Cho
		Title: Chief Financial Officer

Date : May 23, 2006