Edgar Filing: SHINHAN FINANCIAL GROUP CO LTD

e6vk

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 March 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): 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 FY2008 Business Report

On March 31, 2009, Shinhan Financial Group (“SFG”) filed its FY2008 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			3
2. Business Results			6
3. Independent Auditor			10
4. Directors, Executive Officers and Employees			11
5. Major Shareholders and Market Price Information of Our Common Shares and ADRs			13
6. Related Party Transactions			14
Exhibit 99.1
Exhibit 99.2

Exhibit 99-1

Independent Accountant’s Audit Report (Non-consolidated Financial Statements) of Shinhan Financial Group as of December 31, 2008

Exhibit 99-2

Independent Accountant’s Audit Report (Consolidated Financial Statements) of Shinhan Financial Group and its subsidiaries as of December 31, 2008

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

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 the 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.

Changes 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.

Dividend for FY 2008

1) Dividend Amount for Common Stock: None

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 January 31, 2009)

Direct Subsidiaries


Subsidiaries	Ownership by SFG
Shinhan Bank		100.0	%
Shinhan Card		100.0	%
SHC Management		100.0	%
Good Morning Shinhan Securities		100.0	%
Shinhan Life Insurance		100.0	%
Shinhan Capital		100.0	%
Shinhan BNP Paribas Asset Management ¹⁾		65.0	%
Jeju Bank ²⁾		68.9	%
SH&C Life Insurance		50.0	%
Shinhan Macquarie Financial Advisory		51.0	%
Shinhan Credit Information		100.0	%
Shinhan Private Equity		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 the
Direct Subsidiaries	Indirect Subsidiaries	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 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	%
	JSC Shinhan Bank Kazakhstan		100.00	%
	Shinhan Bank China Limited		100.00	%
	Shinhan AITAS		89.6	%
	Shinhan Bank Canada		100.00	%

Shinhan Card	Shinhan-KTF Mobile Card		50.00	%

Good Morning Shinhan Securities	Good Morning Shinhan Securities Europe Ltd.		100.00	%
	Good Morning Shinhan Securities USA Inc.		100.00	%
	Good Morning Shinhan Securities Asia Ltd.		100.00	%

Shinhan Private Equity	Shinhan NPS Private Equity Fund 1^st		5.00	%²⁾
Shinhan Private Equity	Shinhan Private Equity Fund II		2.17	%³⁾


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 1^st.

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 March 25, 2009
Common Shares		396,199,587		474,199,587
Redeemable Preferred Shares		47,690,251		47,690,251
Redeemable Convertible Preferred Shares		14,721,000		14,721,000
Total		458,610,838		536,610,838

Employee Stock Ownership Plan (ESOP)

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


		Contribution Amount
Employee Accounts	Contribution Date	(KRW)		Contributor	Objective
Contributed by relevant companies	March 12, 2008		29,688,000,000	Shinhan Bank	Stock Purchase
	March 21, 2008		3,129,681,195	GMSH Securities	Stock Purchase
	March 24, 2008		525,000,000	Shinhan Capital	Stock Purchase
	April 4, 2008		414,136,737	SFG	Stock Purchase

Sub-total			33,756,817,932	—	—

Contributed by employees	March 12, 2008 ~ April 21, 2008		3,295,700,000	—	—
	October 27, 2008 ~ Nov. 4, 2008		8,500,356,700	—	—
	Dec. 1, 2008 ~ Dec. 5, 2008		8,679,380,000	—	—

Sub-total			20,475,436,700	—	—

Total			54,232,254,632		—

(2) Changes in ESOA Share Ownership


	(As of December 31, 2008, Unit: shares)
			Beginning Balance						Ending Balance
	Share type		(Jan.1, 2008)		Increase		Decrease		(Dec. 31, 2008)
Association Accounts	Common Shares			1,236,075		—		1,236,075		—
Employee Accounts	Common Shares			4,336,056		2,473,431		355,686		6,453,801

Total		—		5,572,131		2,473,431		1,591,761		6,453,801

(3) ESOP Ownership per company


(As of December 31, 2008, Unit: shares)
Company	Number of Shares
Shinhan Financial Group		71,613
Shinhan Bank		5,946,435
Good Morning Shinhan Securities		141,124
Shinhan Card		120,843
Shinhan Life Insurance		92,873
Shinhan Capital		65,859
Shinhan AITAS		6,233
SH&C Insurance		2,310
Shinhan Credit Information		1,674
Shinhan Data System		4,837

Total		6,453,801

(4) Subsequent Events

During the rights offering in March 2009, members of the ESOA have subscribed for 15,600,000 shares of new common shares allocated to them.

2. Business Results

Operation Results


	(KRW million)
	2008		2007		2006
	(Jan.1~Dec.31)		(Jan.1~Dec.31)		(Jan.1~Dec.31)
Operating Revenue		2,455,917		2,749,536		2,003,752
Gain using the equity method of accounting		2,184,643		2,632,111		1,917,268
Interest income		135,503		117,333		79,151
Royalty		135,771		—		—
Gain on Foreign Currency Transaction		—		92		5,838
Other income		—		—		1,495
Operating Expense		442,907		375,344		182,889
Loss using the equity method of accounting		5,328		—		—
Interest Expense		390,602		326,928		129,644
Loss on Foreign Currency Transaction		13		93		5,838
Commission Expense		291		112		269
SG&A Expense		46,673		48,211		47,138
Operating Income		2,013,010		2,374,192		1,820,863

Source and Use of Funds

Source of Funds


							(KRW million)
	2008						2007				2006
	(Jan.1~Dec.31)						(Jan.1~Dec.31)				(Jan.1~Dec.31)
	Average			Ratio			Average		Ratio		Average		Ratio
	Balance ¹⁾			(%)			Balance ¹⁾		(%)		Balance ¹⁾		(%)
Stockholders’ Equity		17,912,730			70.21			15,896,140		71.40		10,376,235		76.70
Capital Stock		2,462,473			9.65			2,374,866		10.67		2,170,758		16.05
Capital Surplus		8,955,810			35.10			7,482,652		33.61		4,360,100		32.23
Capital Adjustment		(294,958	)		(1.16	)		19,669		0.09		25,520		0.19
Comprehensive Income		996,812			3.91			1,578,309		7.09		840,704		6.21
Retained Earnings		5,792,593			22.71			4,440,644		19.95		2,979,153		22.02
Liabilities		7,598,366			29.79			6,368,277		28.60		3,152,497		23.30
Borrowings		7,404,973			29.03			6,242,453		28.04		2,769,824		20.47
Other liabilities		193,393			0.76			125,824		0.57		382,673		2.83

Total		25,511,096			100.00			22,264,417		100.00		13,528,732		100.00


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

Use of Funds


(KRW million)
	2008				2007				2006
	(Jan.1~Dec.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		22,736,897		89.13		20,342,185		91.37		11,646,253		86.08
Shinhan Bank		11,665,665		45.74		10,820,953		48.60		8,997,565		66.50
Shinhan Card		7,711,856		30.24		5,963,810		26.79		—		—
SHC Management		239,768		0.94		955,862		4.29		639,038		4.72
Good Morning Shinhan Securities		1,758,965		6.89		1,432,555		6.43		943,203		6.97
Shinhan Life Insurance		827,007		3.24		807,664		3.63		768,599		5.68
Shinhan Capital		361,603		1.42		220,347		0.99		170,264		1.26
Jeju Bank		84,618		0.33		73,916		0.33		66,809		0.49
Shinhan Credit Information		13,349		0.05		11,249		0.05		9,179		0.07
Shinhan Private Equity		10,564		0.04		9,864		0.04		8,987		0.07
Shinhan BNP Paribas ITMC		31,557		0.12		26,597		0.12		24,152		0.18
SH Asset Management		12,998		0.05		—		—		—		—
SH&C Life Insurance		17,908		0.07		17,821		0.08		17,322		0.13
Shinhan Macquarie FA		1,039		0.00		1,547		0.01		1,135		0.01
Loans		1,990,995		7.80		1,201,143		5.39		1,299,633		9.61
Fixed Assets		1,409		0.01		662		0.00		959		0.01
Cash Deposit in bank		714,835		2.80		557,627		2.50		422,201		3.12
Other Assets		66,960		0.26		162,800		0.73		159,686		1.18

Total		25,511,096		100.00		22,264,417		100.00		13,528,732		100.00


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

Other Financial Information

Group BIS Ratio


(KRW million)
	2008			2007
Aggregate Amount of Equity Capital (A)		18,746,446			15,945,940
Risk-Weighted Assets (B)		183,766,217			161,849,385
BIS Ratio (A/B) ¹⁾		10.20	%		9.85	%


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)
	2008			2007			2006
Won Assets due within 3 months (A)		920,661			220,009			605,415
Won Liabilities due within 3 months (B)		690,397			209,888			248,661
Won Liquidity Ratio (A/B) ¹⁾		133.35	%		104.82	%		243.47	%


1)		Under the guidelines issued by the FSC, we, at the holding company level, are required to maintain a Won liquidity ratio of no less than 100%.

Liabilities to Equity Ratio


(KRW million)
	2008			2007			2006
Liabilities (A)		8,307,683			7,349,727			3,642,105
Equity (B)		17,605,119			17,977,801			11,361,526
Liabilities to Equity Ratio (A/B)		47.19	%		40.88	%		32.06	%

Capital Adequacy Ratio and Other Ratios of Certain Subsidiaries

(1) BIS Capital Adequacy Ratio (%) ¹⁾


	2008		2007		2006
Shinhan Bank ²⁾		13.44		12.09		12.01
Jeju Bank		12.98		11.32		11.26


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)		2006 and 2007 ratios for Shinhan Bank are based on Basel I. Basel II FIRB Approach was applied in calculating BIS for 2008

(2) Adjusted Equity Capital Ratio (%)


	2008		2007		2006
Shinhan Card		20.32		25.31		34.25


*		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%. 2006 figure is that of former LG Card.

(3) Net Capital Ratio (%)


	Dec.31 2008		Mar.31 2008		Mar.31 2007
Good Morning Shinhan Securities		575.44		699.80		451.69


*		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 (%)


	Dec.31 2008		Mar.31 2008		Mar.31 2007
Shinhan Life Insurance		209.47		222.74		224.70


*		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)
	Dec.31, 2008				Dec.31, 2007				Dec.31, 2006
	Balance of		NPL to total		Balance of		NPL to total		Balance of		NPL to total
	NPL		Loans (%)		NPL		Loans (%)		NPL		Loans (%)
Shinhan Bank		1,306,316		0.85		848,846		0.63		729,655		0.62
Jeju Bank		7,581		0.36		11,952		0.60		13,120		0.74
Shinhan Card ²⁾		339,101		2.91		448,866		3.71		493,236		6.05

Dec.31, 2008

Mar. 31, 2008

Mar. 31, 2007

Balance of

NPL to total

Balance of

NPL to total

Balance of

NPL to total

NPL

Loans (%)

NPL

Loans (%)

NPL

Loans (%)

GMSH Securities ²⁾

46,833

4.83

27,738

2.35

25,888

2.54


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.”

		2006 figure for Shinhan Card is that of former LG Card.

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


(KRW million)
			Jan. 1, 2008~		Jan. 1, 2007~		Jan. 1, 2006~
			Dec. 31, 2008		Dec. 31, 2007		Dec. 31, 2006
Shinhan Bank	Loan Loss	Domestic		2,941,901		2,317,075		1,911,843
	Allowance	Overseas		82,636		76,175		59,758
		Total		3,024,537		2,393,250		1,971,601
	Write-offs			340,942		186,316		160,636
Jeju Bank	Loan Loss	Domestic		26,438		31,849		26,313
	Allowance	Overseas		—		—		—
		Total		26,438		31,849		26,313
	Write-offs			8,255		7,188		8,325
Shinhan Card ¹⁾	Loan Loss	Domestic		773,961		947,737		1,031,823
	Allowance	Overseas		—		—		—
		Total		773,961		947,737		1,031,823
	Write-offs			603,883		430,535		535,622


1)		2006 figure for Shinhan Card is that of former LG Card.


			Apr. 1, 2008~		Apr. 1, 2007~		Apr. 1, 2006~
			Dec. 31, 2008		Mar. 31, 2008		Mar. 31, 2007
GMSH	Loan Loss	Domestic		62,217		33,005		30,776
Securities	Allowance	Overseas		—		—		—
		Total		62,217		33,005		30,776
	Write-offs			1,600		983		1,117

3. Independent Auditor

Audit Opinion for the last 3 years

FY 2008

FY 2007

FY 2006

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

Details

Working hours

(KRW mil.)

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

2006

KPMG Samjong Accounting Corp.

304

Review/Audit of Financial Statements

3,352 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 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 are outside directors 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 member 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	July 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.

Chair of Compensation Committee will be elected in the near future.

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 — Risk Management Team

Stock Options (as of March 25, 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 2002		864,576		864,576		—		—		18,910
Granted in 2003		1,020,416		956,507		11,600		52,309		11,800
Granted in 2004		1,258,923		1,243,723		15,200		—		21,595
Granted in 2005		2,620,331		385,773		251,300		1,983,258		28,006
Granted in 2006		3,206,173		—		480,300		2,725,873		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

		11,694,904		3,450,579		1,631,525		6,612,800		—

Note)

The weighted-average exercise price of outstanding exercisable options as of March 25, 2009 is KRW 39,191.

Employees

(As of Dec. 31, 2008)

Total Salaries and

wages paid for the

Average Payment

year 2008

per person

Number of Employees

Average length of Service

(KRW million)

Male

2 yrs 3 mths

8,261

Female

4 yrs 8 mths

620

Total

3 yrs 6 mths

8,881

Directors and Officers Liability Insurance (for SFG and subsidiaries)


Name of Insurance	Insurance Premium	Insured Amount	Insurance Period
Directors and Officers	KRW 496 mil.	Up to KRW 50 bil.	April 1, 2008~
Liability Insurance	(annual)		April 1, 2009


*		Of the total insurance premium (KRW 496 mil.), KRW 121 mil. was paid by SFG, and the remaining amount, by its subsidiaries

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

Major Shareholders of Shinhan Financial Group as of Dec. 31, 2008


Name	No. of Common Shares owned		Ownership%
BNP Paribas Group		33,682,104		8.50
Korea Nat’l Pension Fund		26,181,238		6.61
Citibank N.A. (ADR Dept.)		18,740,162		4.73
Mirae Asset Management		10,776,145		2.72
SFG ESOP		6,453,801		1.63
NTC-GOV SPORE		6,103,884		1.54
Mizuho		5,955,000		1.50
Samsung Life Insurance		5,596,606		1.41
Daekyo		5,234,402		1.32
Samsung Investments		5,012,360		1.27
Norges Bank		4,178,065		1.05

Common Share Traded on the Korea Exchange


(KRW, number of shares)
		Jul. 2008		Aug. 2008		Sept. 2008		Oct. 2008		Nov. 2008		Dec. 2008
Price per share	High		47,400		50,300		50,100		42,000		37,600		34,900
	Low		41,500		46,050		41,900		29,000		25,600		29,500
Trading Volume			43,908,185		28,535,556		56,905,055		85,794,289		66,940,466		59,554,052

American Depositary Shares traded on the New York Stock Exchange


(USD, number of shares)
		Jul. 2008		Aug. 2008		Sept. 2008		Oct. 2008		Nov. 2008		Dec. 2008
Price per share	High		96.03		98.07		91.40		71.00		61.61		52.73
	Low		83.26		88.26		68.47		43.80		32.68		37.42
Trading Volume			1,427,883		1,177,288		2,204,707		2,863,845		2,278,490		2,695,983

* 1 ADR = 2 Common Shares

6. Related Party Transactions



Loans to Subsidiaries		(KRW billion)


Subsidiary	Loan Type	Origination Date		Maturity Date		Funding Rate			Lending Rate			Beginning Balance		Increase		Decrease		Ending Balance
Shinhan Card	Loan in KRW		2003-04-23		2009-04-23		5.47	%		6.28	%		100		—		—		100
Shinhan Capital	Loan in KRW		2003-06-24		2008-06-24		5.69	%		5.95	%		30		—		30		—
Shinhan Capital	Loan in KRW		2003-07-24		2008-07-24		5.87	%		6.13	%		20		—		20		—
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 Capital	Loan in KRW		2005-01-31		2008-01-31		4.21	%		4.58	%		30		—		30		—
GMSH Securities	Loan in KRW		2005-01-31		2010-07-31		4.59	%		5.25	%		70		—		—		70
Shinhan Card	Loan in KRW		2005-03-18		2008-03-18		4.23	%		4.54	%		50		—		50		—
Shinhan Capital	Loan in KRW		2005-05-09		2008-05-09		3.99	%		4.33	%		50		—		50		—
Shinhan Capital	Loan in KRW		2005-12-16		2008-12-16		5.34	%		5.67	%		40		—		40		—
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	%		100		—		70		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
GMSH Securities	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 PE	Loan in KRW		2007-06-28		2008-06-27		5.31	%		5.51	%		5		—		5		—
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		2009-11-11		8.13	%		8.20	%		—		120		—		120
SH&C Life Insurance	Loan in KRW		2008-12-26		2015-12-26		N.A.			9.00	%		—		10		—		10

Total													1,415		1,290		295		2,410

Exhibit 99-1

Independent Accountant’s Audit Report (Non-consolidated Financial Statements) of Shinhan Financial Group as of December 31, 2008

Exhibit 99-2

Independent Accountant’s Audit Report (Consolidated Financial Statements) of Shinhan Financial Group and its subsidiaries as of December 31, 2008

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 : March 31, 2009