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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 November 2009
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 2009 3Q Business Report
On November 16, 2009, Shinhan Financial Group (“SFG”) filed its 2009 3Q 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
     
   
   
   
   
   
   
 Exhibit 99.1
Exhibit 99-1
Independent Accountant’s Review Report (Non-consolidated Financial Statements) of Shinhan Financial Group as of September 30, 2009

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1. Introduction of the Group
Company History in 2008 and 2009
  §   March 2008 : JSC Shinhan Bank Kazakhstan, a subsidiary of Shinhan Bank, joins SFG as an indirect subsidiary
 
  §   April 2008 : SFG and Shinhan Bank obtain the Federal Reserve Bank’s approval to become Financial Holding Companies
 
  §   April 2008 : Shinhan Bank China Limited, a subsidiary of Shinhan Bank, joins SFG as an indirect subsidiary
 
  §   May 2008 : Shinhan AITAS, a fund administration and accounting subsidiary of Shinhan Bank, joins SFG as an indirect subsidiary
 
  §   June 2008 : Shinhan-KTF Mobile Card, a joint-venture company with KT Freetel, joins SFG as an indirect subsidiary
 
  §   August 2008 : Shinhan Private Equity Fund II joins SFG as an indirect subsidiary
 
  §   September 2008 : Shinhan Bank Canada joins SFG as an indirect subsidiary
 
  §   January 2009: Shinhan BNP Paribas Asset Management launched through the merger of Shinhan BNP Paribas ITMC and SH Asset Management
 
  §   June 2009 : SH&C separated from SFG after SFG consummates share transfers of SH&C
 
  §   September 2009 : Shinhan Bank Japan joins SFG as an indirect subsidiary
 
  §   September 2009 : SHC Management liquidation process initiated through a shareholders resolution to dissolve the company
Change in Management
On March 17, 2009, the Board of Directors of Shinhan Financial Group appointed Mr. Sang Hoon Shin as the new President & CEO. Mr. Sang Hoon Shin was formerly President and CEO of Shinhan Bank. Mr. Shin also served as the Managing Director of Shinhan Financial Group in 2001 and as the Managing Director of Shinhan Bank in 1999.
Change in Capital Stock
The number of our common shares has increased by 78,000,000 shares on March 25, 2009 as a result of a rights offering. The subscription price for the new common shares was KRW 16,800 per share. The aggregate proceed from this offering was KRW 1,310,400 million prior to adjusting for the underwriting commissions and other offering expenses. Please refer to the 6-K filed at February 2, 2009 for more details regarding the rights offering.

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Dividend for FY 2008
1)   Dividend Amount for Common Stock: KRW 0
 
2)   Dividend Amount for Preferred Stock: KRW 244,987 million
 
3)   Total Dividend Amount: KRW 244,987 million
Principal Subsidiaries under Korean Law (as of September 30, 2009)
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 %
Shinhan BNP Paribas Asset Management 1)
     65.0 %
Jeju Bank2)
     68.9 %
Shinhan Macquarie Financial Advisory
     51.0 %
Shinhan Credit Information
     100.0 %
Shinhan Private Equity
     100.0 %
SHC Management
     100.0 %
 
1)   Shinhan BNP Paribas Asset Management launched on January 1, 2009.
 
2)   Jeju Bank is currently listed on the Korea Exchange.
Indirect subsidiaries held through direct subsidiaries
             
        Ownership by
Direct Subsidiaries   Indirect Subsidiaries   the Parent
Shinhan Bank
   Shinhan Data System     100.00 %
 
   Shinhan Finance Ltd.(Hong Kong) 1)     100.00 %
 
   Shinhan Asia Limited     100.00 %
 
   Shinhan Bank America     100.00 %
 
   Shinhan Bank Europe GmbH     100.00 %
 
   Shinhan Vina Bank     50.00 %
 
   CHB Valuemeet 2001 year 1st Securitization     50.00 %
 
   CHB Valuemeet 2001 year 2nd Securitization     50.00 %
 
   CHB Valuemeet 2002 year 1st Securitization     50.00 %
 
   Shinhan Khmer Bank Limited     80.1 %
 
   JSC Shinhan Bank Kazakhstan     100.00 %
 
   Shinhan Bank China Limited     100.00 %
 
   Shinhan AITAS     89.6 %
 
   Shinhan Bank Canada     100.00 %
 
   Shinhan Bank Japan     100.00 %
 
   Shinhan Vietnam Bank     100.00 %
 
            
Shinhan Card
   Shinhan-KT Mobile Card     50.00 %
 
            
Shinhan Investment Corp.
   Shinhan Investment Corp Europe Ltd.     100.00 %
 
   Shinhan Investment Corp USA Inc.     100.00 %
 
   Shinhan Investment Corp Asia Ltd.     100.00 %
 
            
Shinhan Private Equity
   Shinhan NPS Private Equity Fund 1st     5.00 % 2)
 
   Shinhan Private Equity Fund II     2.17 %3)
 
            

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1)   On November 1, 2006, Shinhan Finance Limited, Shinhan Financial Group’s indirect subsidiary, was transferred to a branch of Shinhan Bank. The liquidation process is currently taking place.
 
2)   Shinhan Financial Group and its subsidiaries currently own 36.7% of Shinhan NPS Private Equity Fund 1st.
 
3)   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 December 31, 2008   As of September 30, 2009
Common Shares
     396,199,587       474,199,587  
Redeemable Preferred Shares
     47,690,251       38,373,459  
Redeemable Convertible Preferred Shares
     14,721,000       14,721,000  
Total
     458,610,838       527,294,046  
 
                
2. Business Results
Operation Results
(KRW billion)
                         
    2009   2008   2007
    (Jan.1~Sept.30)   (Jan.1~Dec.31)   (Jan.1~Dec.31)
Operating income
     1,605.0       3,032.2       3,737.4  
Non-operating income
     99.9       223.6       277.7  
Non-operating expense
     130.3       262.1       102.0  
Earnings before income tax
     1,574.6       2,993.7       3,913.1  
Income taxes
     524.3       968.5       549.0  
 
                        
Pre-acquisition income in subsidiaries
     —       -0.4       874.1  
 
                        
Consolidated net income
     1,065.8       2,025,6       2,490.0  
Net income in majority interest
     1,049.1       2,018.6       2,396.4  
Net income in minority interest
     16.7       7.0       93.6  

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Source and Use of Funds
Source of Funds
                                                                                                         
            2009   2008   2007
            (Jan.1~Sept.30)   (Jan.1~Dec.31)   (Jan.1~Dec.31)
            Average Balance   Interest   Interest   Average Balance   Interest   Interest   Average Balance   Interest   Interest
(In KRW million, %)   Ratio(%)   Paid   Rate(%)   Ratio(%)   Paid   Rate(%)   Ratio(%)   Paid   Rate(%)
Source
   Fund in KRW   Deposits     1,149,373       43.59       27,301       3.18       958,347       38.71       39,116       4.08       876,195       40.78       26,967       3.08  
 
       CD     124,105       4.71       5,314       5.72       157,372       6.36       9,600       6.1       149,773       6.97       8,076       5.39  
 
       Borrowing     72,271       2.74       1,982       3.67       67,277       2.72       3,332       4.95       60,264       2.81       2,437       4.04  
 
       Call Loan     16,138       0.61       224       1.86       21,912       0.89       1,043       4.76       19,148       0.89       1,130       5.90  
 
       Debenture     390,098       14.79       16,034       5.5       418,532       16.91       24,970       5.97       369,104       17.18       18,850       5.11  
 
       Others     74,000       2.81       2,142       3.87       76,243       3.08       4,259       5.59       57,816       2.69       3,519       6.09  
 
       Subtotal     1,825,985       69.25       52,997       3.88       1,699,683       68.66       82,320       4.84       1,532,300       71.32       60,980       3.98  
 
   Fund in Foreign Currency   Deposits     103,183       3.91       1,730       2.24       67,431       2.72       1,791       2.66       49,953       2.33       1,532       3.07  
 
       Borrowing     82,598       3.13       1,556       2.52       97,945       3.96       3,083       3.15       67,179       3.13       2,408       3.58  
 
       Call Loan     19,866       0.75       364       2.45       10,913       0.44       466       4.27       10,733       0.50       524       4.88  
 
       Debenture     54,310       2.06       780       1.92       49,316       1.99       1,897       3.85       39,398       1.83       2,068       5.25  
 
       Others     2,087       0.08       48       3.08       10,938       0.44       445       4.07       23,062       1.07       712       3.09  
 
       Subtotal     262,044       9.94       4,478       2.28       236,543       9.56       7,682       3.25       190,324       8.86       7,243       3.81  
    Interest bearing funding
     2,088,029       79.18       57,475       3.68       1,936,226       78.22       90,002       4.65       1,722,624       80.18       68,224       3.96  
 
   Others   Shareholder equity     193,688       7.35       —       0       181,847       7.35       —       0       174,937       8.14       —       0  
 
       Loan loss reserve     15,753       0.6       —       0       15,707       0.63       —       0       11,147       0.52       —       0  
 
       Others     339,477       12.87       —       0       341,710       13.80       —       0       239,699       11.16       —       0  
    Non-interest bearing funding
     548,918       20.82       —       0       539,264       21.78       —       0       425,783       19.82       —       0  
                                   Total Funding
     2,636,947       100       57,475       2.91       2,475,490       100       90,002       3.64       2,148,408       100       68,224       3.18  
 
1)   The “Average Balance” is the arithmetic mean of the ending balance of each quarter.

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Use of Funds
                                                                                                         
            2009   2008   2007
            (Jan.1~Sept.30)   (Jan.1~Dec.31)   (Jan.1~Dec.31)
            Average Balance   Interest   Interest   Average Balance   Interest   Interest   Average Balance   Interest   Interest
(In KRW million, %)   Ratio(%)   Paid   Rate(%)   Ratio(%)   Paid   Rate(%)   Ratio(%)   Paid   Rate(%)
Use   Fund in KRW   Deposits     111,039       4.21       1,290       1.55       73,760       2.98       2,581       3.5       67,425       3.14       1,501       2.23  
 
       Securities     487,423       18.48       15,269       4.19       425,433       17.19       20,497       4.82       389,806       18.14       17,014       4.36  
 
       Loans     650,378       24.66       55,637       11.44       1,224,471       49.46       89,602       7.32       1,078,194       50.19       72,320       6.71  
 
       (Household)     601,575       22.81       24,579       5.46       574,061       23.19       40,925       7.13       528,181       24.58       35,298       6.68  
 
       (Corporate)     703,148       26.67       31,058       5.91       650,410       26.27       48,677       7.48       550,013       25.60       37,022       6.73  
 
       Advances for customers     944       0.04       10       1.42       397       0.02       11       2.77       175       0.01       8       4.29  
 
       Call Loan     18,598       0.71       272       1.96       10,667       0.43       496       4.65       8,609       0.40       442       5.13  
 
       Debenture     28,589       1.08       1,169       5.47       32,457       1.31       2,041       6.29       41,847       1.95       2,567       6.13  
 
       Credit Card Receivable     113,694       4.31       23,218       27.3       100,551       4.06       27,839       27.69       94,300       4.39       23,240       24.64  
 
       (Card Loan)     24,700       0.94       2,844       15.39       29,681       1.20       5,351       18.03       31,215       1.45       5,338       17.10  
 
       Others     66,031       2.5       3,147       6.37       65,796       2.66       4,715       7.17       72,038       3.35       4,986       6.92  
 
       Loan loss reserve     -35,333       -1.34       0       0       -30,502       -1.23       0       0       -28,316       -1.32       0       0  
 
       Subtotal     2,095,708       79.47       100,012       6.38       1,903,030       76.87       147,782       7.77       1,724,078       80.25       122,077       7.08  
    Fund in Foreign Currency   Deposits     28,180       1.07       160       0.76       16,573       0.67       394       2.38       9,343       0.43       292       3.13  
 
       Securities     23,319       0.88       403       2.31       20,117       0.81       891       4.43       17,486       0.81       727       4.16  
 
       Loan     135,737       5.15       3,994       3.93       141,759       5.73       6,873       4.85       78,387       3.65       4,564       5.82  
 
       Call loan     17,576       0.67       80       0.61       8,640       0.35       235       2.72       5,360       0.25       299       5.58  
 
       Bills bought     29,944       1.14       1,270       5.67       39,621       1.60       1,791       4.52       35,803       1.67       1,901       5.31  
 
       Others     3,959       0.15       117       3.95       5,493       0.22       466       8.48       68,846       3.20       1,282       1.86  
 
       Loan loss reserve     -2,677       -0.1       0       0       -2,342       -0.09       0       0       -1,441       -0.07               0  
 
       Subtotal     236,038       8.95       6,024       3.41       229,861       9.29       10,650       4.63       213,785       9.95       9,065       4.24  
    Interest earning funding     2,331,746       88.43       106,036       6.08       2,132,890       86.16       158,432       7.43       1,937,864       90.20       131,142       11.32  
    Others   Cash     23,999       0.91       0       0       23,746       0.96       0       0       27,901       1.30       0       0  
 
       PP&E     23,790       0.9       0       0       24,194       0.98       0       0       75,437       3.51       0       0  
 
       Others     257,412       9.76       0       0       294,660       11.90       0       0       107,205       4.99       0       0  
    Non-interest earning funding     305,201       11.57       0       0       342,600       13.84       0       0       210,543       9.80       0       0  
                                  Total use of funds
     2,636,947       100       106,036       5.38       2,475,490       100       158,432       6.4       2,148,408       100       131,142       6.1  
 
1)   The “Average Balance” is the arithmetic mean of the ending balance of each quarter.

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Other Financial Information
Financial information for 2009 3Q contained in this section are provisional figures.
Group BIS Ratio
(KRW million)
                         
    2009 3Q   2008   2007
Aggregate Amount of Equity Capital (A)
     23,485,430       18,723,461       15,815,434  
Risk-Weighted Assets (B)
     176,041,972       183,741,412       161,849,385  
BIS Ratio (A/B) 1)
     13.34 %     10.19 %     9.77 %
 
1)   In accordance with the amendments in the Financial Holding Company Guidelines of the Financial Service Commission (“FSC”), the Group BIS Ratio, rather than the Requisite Capital Ratio, is used as an index for measuring capital adequacy, beginning FY2007.
Won Liquidity Ratio
(KRW million)
                         
    2009 3Q   2008   2007
Won Assets due within 3 months (A)
     925,522       920,661       220,009  
Won Liabilities due within 3 months (B)
     1,390,942       690,397       209,888  
Won Liquidity Ratio (A/B)
     66.54 %     133.35 %     104.82 %
Liabilities to Equity Ratio
(KRW million)
                         
    2009 3Q   2008   2007
Liabilities (A)
     6,775,260       8,307,683       7,349,727  
Equity (B)
     20,192,251       17,605,119       17,977,801  
Liabilities to Equity Ratio (A/B)
     33.55 %     47.19 %     40.88 %
Capital Adequacy Ratio and Other Ratios of Certain Subsidiaries
     (1) BIS Capital Adequacy Ratio (%) 1)
                         
    2009 3Q   2008   2007
Shinhan Bank 2)
     16.02       13.44       12.09  
 
1)   The BIS Capital Adequacy Ratio is computed in accordance with the guidelines issued by the FSC for commercial banks. Under these guidelines, commercial banks are required to maintain a minimum capital adequacy ratio of 8%.
 
2)   Basel II FIRB Approach was applied in calculating BIS for 2008 and 2009 3Q.
     (2) Adjusted Equity Capital Ratio (%)
                         
    2009 3Q   2008   2007
Shinhan Card
     25.93       20.32       25.31  
 
*   The Adjusted Equity Capital Ratio represents the ratio of total adjusted shareholder’s equity to total adjusted assets and is computed in accordance with the guidelines issued by FSC for credit

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    card companies. Under these guidelines, Shinhan Card is required to maintain a minimum adjusted equity capital ratio of 8%.
     (3) Net Capital Ratio (%)
                         
    Sept. 30 2009   Mar.31 2009   Mar.31 2008
Shinhan Investment Corp.
     603.89       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, Good Morning Shinhan Securities is required to maintain a minimum net capital ratio of 100%.
     (4) Solvency Margin Ratio (%)
                         
    Sept.30 2009   Mar.31 2009   Mar.31 2008
Shinhan Life Insurance
     215.05       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)
                                                 
    Sept. 30, 2009   Dec.31, 2008   Dec.31, 2007
    Balance of   NPL to total   Balance of   NPL to total   Balance of   NPL to total
    NPL   Loans (%)   NPL   Loans (%)   NPL   Loans (%)
     
Shinhan Bank
     1,841,714       1.24       1,306,316       0.85       848,846       0.63  
Shinhan Card 2)
     374,309       3.10       339,101       2.91       448,866       3.71  
                                                 
    Sept. 30, 2009   Mar.31, 2009   Mar.31, 2008
    Balance   NPL to total   Balance of   NPL to total   Balance of   NPL to total
    of NPL   Loans (%)   NPL   Loans (%)   NPL   Loans (%)
     
Shinhan Investment Corp. 2)
     138,854       10.05       125,366       12.14       27,738       2.35  
 
1)   Non-performing loans of banks are defined as those loans are past due more than 90 days or those are placed on non-accrual status according to the guidelines of the FSC.
 
2)   Under the guidelines of the FSC, every securities brokerage company and credit card company shall classify its loans into five categories: “normal,” “precautionary,” “substandard,” “doubtful” and “estimated loss.” Under the Group’s internal measures, non-performing loans of Good Morning Shinhan Securities, and Shinhan Card includes loans classified as “substandard,” “doubtful,” and “estimated loss.”

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     (2) Loan Loss Allowances & Write-offs for the period
(KRW million)
                                 
            Jan. 1, 2009~   Jan. 1, 2008~   Jan. 1, 2007~
            Sept. 30, 2009   Dec. 31, 2008   Dec. 31, 2007
Shinhan Bank
   Loan Loss   Domestic     3,379,616       2,945,910       2,317,075  
 
   Allowance   Overseas     25,948       81,927       76,175  
 
      
Total
     3,405,564       3,027,837       2,393,250  
 
   Write-offs         557,223       340,942       186,316  
Shinhan Card
   Loan Loss   Domestic     779,677       773,961       947,737  
 
   Allowance   Overseas     —       —       —  
 
      
Total
     779,677       773,961       947,737  
 
   Write-offs         406,350       603,883       430,535  
                                 
            Apr. 1, 2009~   Apr. 1, 2008~   Apr. 1, 2007~
            Sept. 30, 2009   Mar. 31, 2009   Mar. 31, 2008
Shinhan Investment Corp.
   Loan Loss   Domestic     89,255       104,212       33,005  
 
  Allowance   Overseas     17,357       6,541       —  
 
      
Total
     106,612       110,753       33,005  
 
   Write-offs         4,682       78,153       983  
3. Independent Auditor
Audit Opinion for the last 3 years
                                 
    2009 3Q   2008 3Q   FY 2008   FY 2007
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        
Year   Auditor   (KRW mil.)   Details   Working hours
 
2009 3Q
  KPMG Samjong Accounting Corp.     355     Review/Audit of Financial Statements   3,320 hours
2008
  KPMG Samjong Accounting Corp.     355     Review/Audit of Financial Statements   5,106 hours
2007
  KPMG Samjong Accounting Corp.     341     Review/Audit of Financial Statements   4,599 hours
 
  KPMG Samjong Accounting Corp.     399     Review of Financial Statements related to accounting treatment of LG Card acquisition   2,755 hours

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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 BOD
Board Steering Committee Chair 		  3 years starting from March 20, 2007
Sang Hoon Shin
  Jul. 1, 1948   President & CEO   2 years starting from March 17, 2009
2) Non-Executive Directors
     Currently, 13 non-executive directors are in office, 12 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 17, 2009.
     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
Boo In Go
  Dec. 25, 1941   O   —   1 year starting from March 17, 2009
Young Woo Kim
  May 1, 1952   O   Audit Committee member   1 year starting from March 17, 2009
Yo Koo Kim
  Mar. 23, 1950   O   —   1 year starting from March 17, 2009
Shee Yul Ryoo
  Sept. 5, 1938   O   Board Steering Committee Chair
Compensation Committee member 		  1 year starting from March 17, 2009
Ke Sup Yun
  May 20, 1945   O   Risk Management Committee member
Compensation Committee member 		  1 year starting from March 17, 2009
Jung Il Lee
  Aug. 28, 1952   O   —   1 year starting from March 17, 2009
Sung Bin Chun
  Jan. 21, 1953   O   Audit Committee Chair
Board Steering Committee member
Compensation Committee member 		  1 year starting from March 17, 2009
Kap Young Jeong
  Aug. 22, 1951   O   Audit Committee member
Board Steering Committee member
Compensation Committee member 		  1 year starting from March 17, 2009
Haeng Nam Chung
  Mar. 15, 1941   O   —   1 year starting from March 17, 2009
Bong Youn Cho
  Mar. 9, 1948   O   Risk Management Committee Chair
Audit Committee member
Compensation Committee member 		  1 year starting from March 17, 2009
Young Seok Choi
  Jul. 2, 1929   O   Board Steering Committee member   1 year starting from March 17, 2009
Philippe Reynieix
  Jun. 24, 1949   O   Risk Management Committee member   1 year starting from March 17, 2009
     For personal profiles of the outside directors, please refer to our Form 6-K filed on February 19, 2009.

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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 and Chief Financial Officer   - Finance Management Team
- Investor Relations Team
- Strategic Planning Team
- Global Business Strategy Team
 
            
Sung Ho Wi
  Jun. 12, 1958   Deputy President   - General Affairs Team
 
          - Business Management Team
 
          - Public Relations Team
 
            
Chan Hee Jin
  Jun. 10, 1955   Deputy President   - Synergy Management Team
 
          - Information & Technology Planning Team
 
          - Audit & Compliance Team
Stock Options (as of September 30, 2009)
                                         
            No. of Exercised   No. of Cancelled   No. of Exercisable    
    No. of   Options   Options   Options    
    Granted Options (A)   (B)   (C)   (D = A – B - C)   Exercise Price
Granted in 2003
     1,020,416       1,008,816       11,600       —       11,800  
Granted in 2004
     1,258,923       1,243,723       15,200       —       21,595  
Granted in 2005
     2,620,331       430,793       251,300       1,938,238       28,006  
Granted in 2006
     3,206,173       9,800       480,300       2,716,073       38,829  
Granted in 2007
     1,301,050       —       148,700       1,152,350       54,560  
Granted in 2008
     808,700       —       109,690       699,010       49,053  
Granted in 2009
     614,735       —       614,735       —       23,405  
Total
     10,830,328       2,638,312       1,631,525       6,505,671       —  
 
Note)   The weighted-average exercise price of outstanding exercisable options as of September 30, 2009 is KRW 39,489.
Employees
(As of Sept. 30, 2009)
                                 
                    Total Salaries and wages   Average Payment
    Number of           paid in 1H 2009   per person
    Employees   Average length of Service   (KRW million)   (KRW million)
Total
     107     3 yrs 2 mths     6,238       58.2  

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5. Major Shareholders and Market Price Information of our Common Shares and ADRs
Major Shareholders1) of Shinhan Financial Group as of Sept. 30, 2009
                     
Name       No. of Common Shares owned   Ownership%
BNP Paribas Group
        30,106,276       6.35  
Korea Nat’l Pension Fund 2)
        27,325,400       5.76  
Total
        57,431,676       12.11  
 
1)   Shareholders who own beneficial ownership of 5% or more.
 
2)   Based on the public filing submitted by the Korea National Pension Fund on June 5, 2009 to report change of beneficial ownership of 5% or more. Number of common shares owned is as of May 18, 2009.
Common Share Traded on the Korea Exchange
(KRW, number of shares)
                                                 
    Apr. 2009   May 2009   Jun. 2009   Jul. 2009   Aug. 2009   Sept. 2009
Price per share
                                                
High
     31,700       34,000       32,650       41,600       42,500       48,950  
Low
     25,750       30,300       29,250       32,900       38,800       42,100  
Avg.
     29,191       31,939       30,868       35,963       41,019       46,061  
Trading Volume
     97,338,743       94,042,303       59,576,805       67,685,036       53,817,978       60,030,877  
Highest Daily Trading Volume
     9,373,677       13,492,539       4,281,045       5,588,808       4,298,230       4,444,317  
Lowest Daily Trading Volume
     2,254,216       2,382,288       1,672,469       1,542,585       1,067,417       1,194,900  
American Depositary Shares traded on the New York Stock Exchange
(USD, number of shares)
                                                 
    Apr. 2009   May 2009   Jun. 2009   Jul. 2009   Aug. 2009   Sept. 2009
Price per share
                                                
High
     49.35       56.66       53.99       67.28       69.96       82.87  
Low
     38.24       48.06       46.81       50.56       60.92       65.14  
Avg.
     43.87       51.71       49.08       57.52       66.53       76.21  
Trading Volume
     3,491,465       2,819,257       1,910,529       2,273,916       1,387,528       1,814,680  
Highest Daily Trading Volume
     393,039       247,599       181,514       277,872       137,350       162,484  
Lowest Daily Trading Volume
     85,018       67,028       37,024       36,278       30,791       27,895  
 
*   1 ADR = 2 Common Shares

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6. Related Party Transactions
     
Loans to Subsidiaries   (KRW billion)
     
                                                                     
        Origination   Maturity           Lending   Beginning                   Ending
Subsidiary   Loan Type   Date   Date   Funding Rate   Rate   Balance   Increase   Decrease   Balance
Shinhan Card  
Loan in KRW
     2003-04-23       2009-04-23       5.47 %     5.92 %     100       —       100       —  
Shinhan Capital  
Loan in KRW
     2004-03-24       2009-03-24       5.11 %     5.93 %     20       —       20       —  
Shinhan Capital  
Loan in KRW
     2004-06-25       2009-06-25       4.93 %     5.22 %     50       —       50       —  
Shinhan Investment Corp.  
Loan in KRW
     2005-01-31       2010-07-31       4.59 %     5.25 %     70       —       —       70  
Shinhan Card  
Loan in KRW
     2006-01-24       2009-01-24       5.24 %     5.41 %     50       —       50       —  
Shinhan Capital  
Loan in KRW
     2006-01-24       2009-01-24       5.24 %     5.41 %     50       —       50       —  
Shinhan Card  
Loan in KRW
     2006-02-27       2009-02-27       5.07 %     5.23 %     30       —       30       —  
Shinhan Capital  
Loan in KRW
     2006-02-27       2009-02-27       5.07 %     5.23 %     70       —       70       —  
Shinhan Capital  
Loan in KRW
     2006-04-24       2009-04-24       5.09 %     5.22 %     100       —       100       —  
Shinhan Investment Corp.  
Loan in KRW
     2006-07-31       2012-01-31       5.16 %     5.64 %     100       —       —       100  
Shinhan Capital  
Loan in KRW
     2006-09-26       2011-09-26       4.91 %     4.99 %     50       —       —       50  
Shinhan Capital  
Loan in KRW
     2007-03-23       2012-03-23       5.28 %     5.48 %     50       —       —       50  
Shinhan Capital  
Loan in KRW
     2007-04-13       2010-04-13       5.24 %     5.38 %     50       —       —       50  
Shinhan Capital  
Loan in KRW
     2007-06-08       2012-06-08       5.54 %     5.95 %     50       —       —       50  
Shinhan Capital  
Loan in KRW
     2007-09-27       2010-09-27       5.91 %     6.05 %     100       —       —       100  
Shinhan Capital  
Loan in KRW
     2007-11-27       2010-11-27       6.24 %     6.37 %     50       —       —       50  
Shinhan Card  
Loan in KRW
     2007-11-27       2012-11-27       6.33 %     6.41 %     100       —       —       100  
Shinhan Capital  
Loan in KRW
     2007-12-18       2010-12-18       6.69 %     6.83 %     50       —       —       50  
Shinhan Card  
Loan in KRW
     2007-12-18       2012-12-18       6.78 %     6.86 %     50       —       —       50  
Shinhan Card  
Loan in KRW
     2008-01-23       2011-01-23       6.46 %     6.60 %     100       —       100       —  
Shinhan Capital  
Loan in KRW
     2008-01-23       2011-01-23       6.46 %     6.60 %     50       —       —       50  
Shinhan Capital  
Loan in KRW
     2008-01-23       2013-01-23       6.51 %     6.60 %     50       —       —       50  
Shinhan Card  
Loan in KRW
     2008-02-21       2011-02-21       5.51 %     5.66 %     150       —       —       150  
Shinhan Card  
Loan in KRW
     2008-03-12       2011-03-12       5.71 %     5.84 %     200       —       —       200  
Shinhan Capital  
Loan in KRW
     2008-03-12       2011-03-12       5.71 %     5.84 %     50       —       —       50  
Shinhan Card  
Loan in KRW
     2008-06-27       2011-06-27       6.41 %     6.53 %     200       —       —       200  
Shinhan PE  
Loan in KRW
     2008-06-27       2009-06-26       5.98 %     6.18 %     5       —       5       —  
Shinhan Card  
Loan in KRW
     2008-07-31       2011-07-31       6.76 %     6.90 %     100       —       —       100  
Shinhan Capital  
Loan in KRW
     2008-07-31       2011-07-31       6.76 %     6.90 %     50       —       —       50  
Shinhan PE  
Loan in KRW
     2008-08-13       2009-08-13       6.65 %     6.85 %     5       —       5       —  
Shinhan Card  
Loan in KRW
     2008-12-11       2011-12-11       8.01 %     8.12 %     100       —       100       —  
Shinhan Capital  
Loan in KRW
     2008-12-11       2011-12-11       8.01 %     8.12 %     30       —       30       —  
Shinhan Capital  
Loan in KRW
     2008-12-18       2009-07-03       8.13 %     8.20 %     120       —       120       —  
SH&C  
Loan in KRW
     2008-12-26       2015-12-26       —       9.00 %     10       —       10       —  
Shinhan Capital  
Loan in KRW
     2009-01-06       2009-08-19       6.53 %     6.63 %     —       50       50       —  
Shinhan PE  
Loan in KRW
     2009-08-13       2010-08-13       3.93 %     3.99 %     —       5       —       5  
                                     
Total  
—
     —       —       —       —       2,410       55       890       1,575  
                                     

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Exhibit 99-1
Independent Accountant’s Review Report (Non-consolidated Financial Statements) of Shinhan Financial Group as of September 30, 2009

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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 : November 16, 2009

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