Edgar Filing: SHINHAN FINANCIAL GROUP CO LTD

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SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

FORM 6-K

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

For the Month of March 2011

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 FY 2010 Business Report

On March 31, 2011, Shinhan Financial Group (“SFG”) filed its FY 2010 Business Report (the “Business Report”) with the Financial Supervisory Service of the Republic of Korea (“Korea”) pursuant to the Financial Investment Services and Capital Market Act of Korea. This is the summary of the Business Report translated into English. Non-material or previously disclosed information are omitted or abridged.

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

Table of Contents


1. Introduction of the Group

2. Business Results

3. Independent Auditor

4. Directors, Executive Officers and Employees

5. Major Shareholder and Market Price Information of Our Common Shares and ADRs

6. Related Party Transactions

EX-99.1
EX-99.2

Exhibit 99-1

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

Exhibit 99-2

Independent Accountant’s Audit Report (Consolidated Financial Statements) of Shinhan Financial Group as of December 31, 2010

1. Introduction of the Group

Company History in 2008 through 2011

	•		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 consummated share transfers of SH&C

	•		Sep. 2009 : SBJ became an indirect subsidiary of SFG

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

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

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

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

	•		June 2010 : CHB Valuemeet 2001 First SPC was disaffiliated from SFG

	•		June 2010 : CHB Valuemeet 2001 Second SPC and CHB Valuemeet 2002 First SPC were disaffiliated from SFG

	•		Aug. 2010 : Shinhan Macquarie Financial Advisory was disaffiliated from SFG

	•		Oct. 2010 : Shinhan Maritime Private Equity Fund I became a subsidiary of SFG

	•		Dec. 2010 : KOFC Shinhan Frontier Champ 2010-4 PEF Investment Corp. became an indirect subsidiary of SFG

	•		Feb. 2011 : Shinhan BNP Paribas Asset Management (Hong Kong) Limited became an indirect subsidiary of SFG

Change in Management

On March 23, 2011 the Board of Directors of Shinhan Financial Group appointed Mr. Dong Woo Han as Chairman of the Group and Mr. Hoon Namkoong as the Chairman of the Board of Directors.

Dividend for FY 2010

1) Dividend Amount for Common Stock: KRW 355,650 million

2) Dividend Amount for Preferred Stock: KRW 230,586 million

3) Total Dividend Amount: KRW 586,236 million

Principal Subsidiaries under Korean Law (as of March 31, 2011)

Direct Subsidiaries


Subsidiaries	Ownership by SFG
Shinhan Bank		100.0	%
Shinhan Card		100.0	%
Shinhan Investment Corp.		100.0	%
Shinhan Life Insurance		100.0	%
Shinhan Capital		100.0	%
Jeju Bank ¹⁾		68.9	%
Shinhan BNP Paribas Asset Management		65.0	%
Shinhan Data System ²⁾		100.0	%
Shinhan Credit Information		100.0	%
Shinhan Private Equity		100.0	%
SHC Management		100.0	%


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

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

Indirect subsidiaries held through direct subsidiaries


		Ownership by
Direct Subsidiaries	Indirect Subsidiaries	the Parent
Shinhan Bank	Shinhan Asia Limited		100.0	%
	Shinhan Bank America		100.0	%
	Shinhan Bank Europe		100.0	%
	Shinhan Vina Bank		50.0	%
	Shinhan Khmer Bank Limited		90.0	%
	Shinhan Bank Kazakhstan		100.0	%
	Shinhan Bank China Limited		100.0	%
	Shinhan AITAS		89.6	%
	Shinhan Bank Canada		100.0	%
	Shinhan Bank Japan		100.0	%
	Shinhan Vietnam Bank		100.0	%

Shinhan Card	Shinhan-KT Mobile Card		50.0	%

Shinhan Investment Corp.	Shinhan Investment Corporation Europe Ltd.		100.0	%
	Shinhan Investment Corporation USA Inc.		100.0	%
	Shinhan Investment Corporation Asia Ltd.		100.0	%
	Shinhan Maritime Private Equity Fund I		7.1	%
	KOFC Shinhan Frontier Champ 2010-4 PEF Investment Corp ³⁾		8.5	%

Shinhan Capital	PETRA PEF		23.8	%

Shinhan BNP Paribas Asset Management	Shinhan BNP Paribas Asset Management (Hong Kong) Limited		100.0	%

Shinhan Private Equity	Shinhan NPS Private Equity Fund 1st		5.0	% 1)
	Shinhan Private Equity Fund II		2.2	% 2)


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

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

3)		Shinhan Capital currently also owns 6.5% of KOFC Shinhan Frontier Champ 2010-4 PEF Investment Corp.

Number of Shares


	Number of Shares
Types of Shares	As of Dec 31, 2010		As of Dec 31, 2009
Common Shares		474,199,587		474,199,587
Redeemable Preferred Shares		28,990,000		38,373,459
Redeemable Convertible Preferred Shares		14,721,000		14,721,000

Total		517,910,587		527,294,046

2. Business Results

Operation Results


(KRW billion)
	2010			2009		2008
	(Jan.1~Dec.31)			(Jan.1~Dec.31)		(Jan.1~Dec.31)
Operating income		3,235.2			2,097.9		3,039.3
Non-operating income		122.4			126.2		223.6
Non-operating expense		268.9			244.7		261.9
Earnings before income tax		3,088.7			1,979.4		3,001.0
Income taxes		717.6			666.7		971.2
Pre-acquisition income in subsidiaries		0.0			0.0		(0.4	)
Consolidated net income		2,371.1			1,328.2		2,025,7
Net income in majority interest		2,383.9			1,305.3		2,018.7
Net income in minority interest		(12.8	)		22.9		7.0


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

Source and Use of Funds

Source of Funds


	2010								2009								2008
	(Jan.1~Dec.31)								(Jan.1~Dec.31)								(Jan.1~Dec.31)
	Average				Interest		Interest		Average				Interest		Interest		Average				Interest		Interest
(In KRW billion, %)	Balance		Ratio (%)		Paid		Rate (%)		Balance		Ratio (%)		Paid		Rate (%)		Balance		Ratio (%)		Paid		Rate (%)
Source
Fund in KRW
Deposits		136,841.6		51.81		3,931.0		2.87		117,649.1		45.05		3,643.5		3.10		95,834.7		38.71		3,911.6		4.08
CD		4,643.0		1.76		211.5		4.56		11,462.6		4.39		644.7		5.62		15,737.2		6.36		960.0		6.10
Borrowing		6,244.4		2.36		188.1		3.01		7,409.0		2.84		251.9		3.40		6,727.7		2.72		333.2		4.95
Call Loan		1,977.2		0.75		39.7		2.01		1,328.4		0.51		33.3		2.51		2,191.2		0.89		104.3		4.76
Debenture		34,371.3		13.01		1,847.9		5.38		38,241.6		14.64		2,084.0		5.45		41,853.2		16.91		2,497.0		5.97
Others		3,490.2		1.32		127.5		3.65		6,461.1		2.47		248.8		3.85		7,624.3		3.08		425.9		5.59
Subtotal		187,567.7		71.02		6,345.7		3.38		182,551.8		69.91		6,906.2		3.78		169,968.3		68.66		8,232.0		4.84
Fund in Foreign Currency
Deposits		11,530.8		4.37		140.3		1.22		10,550.7		4.04		218.7		2.07		6,743.1		2.72		179.1		2.66
Borrowing		6,545.6		2.48		85.1		1.30		7,776.1		2.98		183.3		2.36		9,794.5		3.96		308.3		3.15
Call Loan		605.4		0.23		3.1		0.51		1,188.4		0.46		36.7		3.09		1,091.3		0.44		46.6		4.27
Debenture		5,095.7		1.93		82.4		1.62		5,292.0		2.03		97.0		1.83		4,931.6		1.99		189.7		3.85
Others		344.9		0.13		16.7		4.84		201.4		0.08		5.7		2.83		1,093.8		0.44		44.5		4.07
Subtotal		24,122.4		9.13		327.6		1.36		25,008.6		9.58		541.4		2.16		23,654.3		9.56		768.2		3.25
Interest bearing funding		211,690.1		80.15		6,673.3		3.15		207,560.4		79.49		7,447.6		3.59		193,622.6		78.22		9,000.2		4.65
Others
Shareholder equity		22,081.8		8.36		0.0		0.00		19,719.7		7.55		0.0		0.00		18,184.7		7.35		0.0		0.00
Loan loss reserve		1,502.2		0.57		0.0		0.00		1,548.8		0.59		0.0		0.00		1,570.7		0.63		0.0		0.00
Others		28,846.4		10.92		0.0		0.00		32,297.8		12.37		0.0		0.00		34,171.0		13.80		0.0		0.00
Non-interest bearing funding		52,430.4		19.85		0.0		0.00		53,566.3		20.51		0.0		0.00		53,926.4		21.78		0.0		0.00
Total Funding		264,120.5		100.00		6,673.3		2.53		261,126.7		100.00		7,447.6		2.85		247,549.0		100.00		9,000.2		3.64


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

Use of Funds


	2010									2009									2008
	(Jan.1~Dec.31)									(Jan.1~Dec.31)									(Jan.1~Dec.31)
	Average					Interest		Interest		Average					Interest		Interest		Average					Interest		Interest
(In KRW billion, %)	Balance		Ratio (%)			Paid		Rate (%)		Balance		Ratio (%)			Paid		Rate (%)		Balance		Ratio (%)			Paid		Rate (%)
Use
Fund in KRW
Deposits		12,413.4		4.70			118.4		0.95		11,055.7		4.23			174.8		1.58		7,376.0		2.98			258.1		3.50
Securities		52,018.2		19.69			2,062.8		3.97		48,785.8		18.68			2,044.4		4.19		42,543.3		17.19			2,049.7		4.82
Loans		133,555.6		50.57			7,641.0		5.72		60,544.2		23.19			3,295.5		5.44		122,447.1		49.46			8,960.2		7.32
(Household)		62,998.4		23.85			3,403.7		5.40		60,544.2		23.19			3,295.5		5.44		57,406.1		23.19			4,092.5		7.13
(Corporate)		70,557.2		26.71			4,237.3		6.01		70,344.1		26.94			4,184.6		5.95		65,041.0		26.27			4,867.7		7.48
Advances for customers		35.2		0.01			0.3		0.85		81.9		0.03			1.1		1.34		39.7		0.02			1.1		2.77
Call Loan		2,970.0		1.12			65.0		2.19		1,464.8		0.56			38.8		2.65		1,066.7		0.43			49.6		4.65
Debenture		2,371.0		0.90			145.9		6.15		2,825.5		1.08			164.9		5.84		3,245.7		1.31			204.1		6.29
Credit Card Receivable		14,923.5		5.65			3,453.8		23.14		11,823.6		4.53			3,148.8		26.63		10,055.1		4.06			2,783.9		27.69
(Card Loan)		3,127.2		1.18			522.4		16.71		2,530.1		0.97			392.6		15.52		2,968.1		1.20			535.1		18.03
Others		1,708.2		0.65			366.2		21.44		6,219.0		2.38			401.7		6.46		6,579.6		2.66			471.5		7.17
Loan loss reserve		-3,446.2		(1.30	)		0.0		0.00		-3,519.2		(1.35	)		0.0		0.00		-3,050.2		(1.23	)		0.0		0.00
Subtotal		216,548.9		81.99			13,853.4		6.40		209,625.4		80.28			13,454.6		6.42		190,303.0		76.87			14,778.2		7.77
Fund in Foreign Currency
Deposits		2,879.8		1.09			40.2		1.40		2,883.5		1.10			21.4		0.74		1,657.3		0.67			39.4		2.38
Securities		2,230.4		0.84			29.5		1.32		2,331.8		0.89			53.3		2.29		2,011.7		0.81			89.1		4.43
Loan		13,508.8		5.11			460.7		3.41		13,368.1		5.12			518.5		3.88		14,175.9		5.73			687.3		4.85
Call loan		1,241.0		0.47			6.3		0.51		1,154.1		0.44			9.4		0.81		864.0		0.35			23.5		2.72
Bills bought		3,777.4		1.43			93.0		2.46		3,076.0		1.18			152.1		4.94		3,962.1		1.60			179.1		4.52
Others		313.1		0.12			11.6		3.70		379.9		0.15			14.7		3.87		549.3		0.22			46.6		8.48
Loan loss reserve		-386.1		(0.15	)		0.0		0.00		-273.3		(0.10	)		0.0		0.00		-234.2		(0.09	)		0.0		0.00
Subtotal		23,564.4		8.92			641.3		2.72		22,920.1		8.78			769.4		3.36		22,986.1		9.29			1,065.0		4.63
Interest earning funding		240,113.3		90.91			14,494.7		6.04		232,545.5		89.05			14,224.0		6.12		213,289.0		86.16			15,843.2		7.43
Others
Cash		2,327.2		0.88			0.0		0.00		2,289.3		0.88			0.0		0.00		2,374.6		0.96			0.0		0.00
PP&E		2,362.3		0.89			0.0		0.00		2,370.0		0.91			0.0		0.00		2,419.4		0.98			0.0		0.00
Others		19,317.7		7.31			0.0		0.00		23,921.9		9.16			0.0		0.00		29,466.0		11.90			0.0		0.00
Non-interest earning funding		24,007.2		9.09			0.0		0.00		28,581.2		10.95			0.0		0.00		34,260.0		13.84			0.0		0.00
Total use of funds		264,120.5		100.00			14,494.7		5.49		261,126.7		100.00			14,224.0		5.45		247,549.0		100.00			15,843.2		6.40


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

Other Financial Information

Group BIS Ratio


(KRW million)
	Dec. 31, 2010			Dec. 31, 2009			Dec. 31, 2008
Aggregate Amount of Equity Capital (A)		23,711,758			22,572,130			18,723,461
Risk-Weighted Assets (B)		185,694,642			179,083,070			183,741,412
BIS Ratio (A/B) ¹⁾		12.77	%		12.60	%		10.19	%


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)
	Dec. 31, 2010			Dec. 31, 2009			Dec. 31, 2008
Won Assets due within 1 months (A)		972,593			470,681			920,661
Won Liabilities due within 1 months (B)		246,035			376,446			690,397
Won Liquidity Ratio (A/B)		395.31	%		125.03	%		133.35	%


1)		2008 figures are assets and liabilities due within 3 month.

Liabilities to Equity Ratio


(KRW million)
	Dec. 31, 2010			Dec. 31, 2009			Dec. 31, 2008
Liabilities (A)		6,886,449			6,392,346			8,307,683
Equity (B)		22,724,753			20,728,361			17,605,883
Liabilities to Equity Ratio (A/B)		30.30	%		30.84	%		47.19	%

Capital Adequacy Ratio and Other Ratios of Certain Subsidiaries

(1) BIS Capital Adequacy Ratio (%) ¹⁾


	Dec. 31, 2010		Dec. 31, 2009		Dec. 31, 2008
Shinhan Bank ²⁾		15.93		15.13		13.44


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

2)		Basel II FIRB Approach was applied in calculating BIS Capital Adequacy Ratios

(2) Adjusted Equity Capital Ratio (%)


	Dec. 31, 2010		Dec. 31, 2009		Dec. 31, 2008
Shinhan Card		24.99		26.73		20.32


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

(3) Net Capital Ratio (%)


	Dec. 31, 2010		Dec. 31, 2009		Dec. 31, 2008
Shinhan Investment Corp.		658.31		608.78		575.44


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

(4) Solvency Margin Ratio (%)


	Dec. 31, 2010		Dec. 31, 2009		Dec. 31, 2008
Shinhan Life Insurance		397.93		262.67		209.47


*		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, 2010				Dec. 31, 2009				Dec.31, 2008
	Balance of		NPL to total		Balance of		NPL to total		Balance of		NPL to total
	NPL		Loans (%)		NPL		Loans (%)		NPL		Loans (%)
Shinhan Bank ¹⁾		1,410,031		0.91		1,158,985		0.77		1,306,316		0.85
Shinhan Card ²⁾		237,395		1.44		435,083		3.08		339,101		2.91
Shinhan Investment ²⁾		142,772		12.29		253,995		19.45		46,833		4.82
Shinhan Life Insurance		38,000		1.48		38,800		1.53		31,600		1.31


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 Shinhan Investment, and Shinhan Card includes loans classified as “substandard,” “doubtful,” and “estimated loss.”

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


(KRW million)
		Jan. 1, 2010~		Jan. 1, 2009~		Jan. 1, 2008~
		Dec. 31, 2010		Dec. 31, 2009		Dec. 31, 2008
Shinhan Bank	Allowance for Possible Loan Losses		2,835,768		2,641,918		2,661,427
	Allowance for doubtful accounts on Acceptance and Guarantees		138,236		105,629		113,669
	Allowances for Losses Related to Unused Ceiling		287,224		267,859		249,442
	Other Allowances		111,757		88,337		69,557
	Allowance for Valuation of Bonds		984		7,609		8,152
	Total		3,373,968		3,111,352		3,102,247
	Write-offs		709,844		1,006,941		340,942


Shinhan Card	Allowance for Possible Loan Losses		607,105		793,469		773,960
	Allowance for reward on credit card use		287,196		273,233		246,429
	Allowances for Losses Related to Unused Ceiling		504,692		488,559		485,738
	Other Allowances		4,946		12,619		22,325
	Total		1,403,939		1,567,880		1,528,452
	Write-offs		479,231		469,087		603,883


Shinhan Investment Corp.	Allowance for Possible Loan Losses		117,768		182,278		62,217
	Other Allowances		21,942		21,942		0
	Total		139,710		204,220		62,217
	Write-offs		8,004		4,682		502


Shinhan Life Insurance	Allowance for Possible Loan Losses		38,859		38,410		30,635
	Total		38,589		38,410		30,635
	Write-offs		5,144		4,540		0

Twenty Largest Exposures by Borrower


(KRW billion)
			Loans in						Guarantees
As of Dec. 31, 2010	Loans in		Foreign		Equity		Debt		and		Total
Consolidated basis	Won		Currency		Securities		Securities		Acceptances		Exposures
Ministry of Strategy & Finance		0		0		0		10,085		0		10,085
Bank of Korea		1,200		0		0		3,348		0		4,548
Korea Deposit Insurance Corporation		0		0		0		2,311		0		2,311
Hyundai Heavy Industries Co., Ltd.		3		136		8		10		1,879		2,036
Industrial Bank of Korea		498		17		2		1,068		0		1,585
Korea Land & Housing Corporation		0		0		0		1,281		0		1,281
Korea Development Bank		18		0		42		1,186		0		1,246
Hyundai Samho Heavy Industries Co., Ltd.		0		57		0		30		1,093		1,180
Woori Bank		55		0		19		1,042		0		1,116
POSCO		29		59		851		99		70		1,108
I-CLOVER CO., LTD.		29		0		0		1,076		0		1,105
Samsung Electronics Co., Ltd.		0		1,033		32		0		0		1,065
Samsung Heavy Industries Co., LTd.		0		194		0		0		801		995
Songdo Cosmopolitan City Development Inc.		978		0		0		0		0		978
Kookmin Bank		37		0		1		829		0		867
Hyundai Mipo Dockyard Co., Ltd.		0		0		3		0		812		815
SK Energy		7		206		1		106		403		723
Korea Securities Finance Corporation		350		0		25		281		0		656
STX Offshore & Shipbuilding Co., Ltd.		20		0		0		0		615		635
Samsung C&T		1		65		523		10		28		627
Total		3,225		1,767		1,507		22,762		5,701		34,962

Exposure to Main Debtor Groups


(KRW billion)
			Loans in						Guarantees
As of Dec. 31, 2010			Foreign		Equity		Debt		and		Total
Consolidated basis	Loans in Won		Currency		Securities		Securities		Acceptances		Exposures
Hyundai Heavy Industries		68		293		13		41		3,813		4,228
Samsung		133		1,550		543		256		1,204		3,686
Hyundai Motors		1,017		1,186		24		170		410		2,807
SK		309		254		432		221		600		1,815
POSCO		159		230		857		122		394		1,762
LG		623		663		0		6		182		1,474
Lotte		487		50		2		313		102		955
STX		114		48		49		0		623		834
LS		125		259		1		71		292		748
Hynix		0		118		342		0		98		559
Total		3,035		4,651		2,263		1,200		7,718		18,868

Loan Concentration by Industry


(KRW million)
					Loans in Foreign
	Loans in Won				Currency				Others				Total Exposures
As of Dec. 31, 2010			Weight				Weight				Weight				Weight
Consolidated basis	Amount		(%)		Amount		(%)		Amount		(%)		Amount		(%)
Manufacturing		21,787,018		16.01		3,368,816		33.39		7,589,477		21.97		32,745,311		18.12
Retail and wholesale		12,216,603		8.98		814,288		8.07		1,861,594		5.39		14,892,485		8.24
Real Estate, leasing and service		16,742,638		12.30		1,357,500		13.46		318,291		0.92		18,418,429		10.19
Construction		5,555,513		4.08		45,451		0.45		554,345		1.61		6,155,309		3.41
Hotel and leisure		4,308,646		3.17		271,096		2.69		104,507		0.30		4,684,249		2.59
Finance and insurance		3,419,713		2.51		442,407		4.39		3,673,620		10.64		7,535,740		4.17
Others		7,662,856		5.63		3,586,516		35.55		1,465,153		4.24		12,714,525		7.04
Consumers		64,375,959		47.32		202,097		2.00		18,969,993		54.93		83,548,049		46.24
Total		136,068,946		100.00		10,088,171		100.00		34,536,980		100.00		180,694,097		100.00

Top Twenty Non-Performing Loans


(KRW billion)
		Gross Principal
Borrower	Industry	Outstanding		Allowance for Loan Losses
A	Finance and insurance		64		32
B	Others		51		51
C	Real estate, leasing and service		50		25
D	Others		39		14
E	Manufacturing		22		2
F	Construction		18		10
G	Manufacturing		18		11
H	Manufacturing		13		3
I	Manufacturing		13		12
J	Transportation		12		3
K	Manufacturing		11		11
L	Transportation		10		0
M	Transportation		10		10
N	Real estate, leasing and service		9		2
O	Manufacturing		9		2
P	Real estate, leasing and service		8		2
Q	Others		8		2
R	Manufacturing		7		3
S	Real estate, leasing and service		7		1
T	Manufacturing		6		2
Total			385		198


1)		Consolidated basis as of December 31, 2010

2)		Non-Performing Loans are defined as loans past due longer than 90 days

3. Independent Auditor

Audit Opinion for the last 3 years


	FY 2010	FY 2009	FY 2008
Audit Opinion	Unqualified	Unqualified	Unqualified

Compensation to the Independent Auditor for Audit and Review Services

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


		Payment
Year	Auditor	(KRW mil.)		Details	Working hours
2010	KPMG Samjong Accounting Corp.		366	Review/Audit of Financial Statements	4,650 hours
2009	KPMG Samjong Accounting Corp.		355	Review/Audit of Financial Statements	4,595 hours
2008	KPMG Samjong Accounting Corp.		355	Review/Audit of Financial Statements	5,106 hours

4. Directors, Executive Officers and Employees

Directors and Executive Officers

1) Executive Directors


Name	Date of Birth	Position	Service Term
Dong Woo Han	Nov. 10, 1948	Chairman of Shinhan Financial Group Board Steering Committee Member	3 years starting from March 23, 2011

2) Non-Executive Directors

Currently, 11 non-executive directors are in office, 10 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 23, 2011.

Our non-executive directors are as follows:


		Outside
Name	Date of Birth	Director	Sub-Committees	Service Term
Jin Won Suh	April 20, 1951	X	—	1 years starting from March 23, 2011
Taeeun Kwon	January 29, 1941	O	Audit Committee member	2 years starting from March 23, 2011
Kee Young Kim	October 7, 1937	O	Risk Management Committee member	2 years starting from March 23, 2011
			Compensation Committee member
Seok Won Kim	April 29, 1947	O	Audit Committee member	2 years starting from March 23, 2011
			Compensation Committee member
Hoon Namkoong	June 26, 1947	O	Chairman of Board of Directors	2 years starting from March 23, 2011
			Board Steering Committee member
			Risk Management Committee member
Jaekun Yoo	August 24, 1941	O	—	2 years starting from March 23, 2011
Ke Sop Yun	May 20, 1945	O	Audit Committee member	1 years starting from March 23, 2011
			Board Steering Committee member
Jung Il Lee	August 28, 1952	O	Board Steering Committee member	1 years starting from March 23, 2011
Sun Tae Hwang	October 11, 1948	O	Audit Committee member	2 years starting from March 23, 2011
			Compensation Committee member
Haruki Hirakawa	November 7, 1964	O	—	1 years starting from March 23, 2011
Philippe Aguignier	September 26, 1957	O	Risk Management Committee member	1 years starting from March 23, 2011

For personal profiles of the outside directors, please refer to our Form 6-K filed on February 22, 2011.

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 &	— Finance Management Team
		Chief Financial Officer	— Investor Relations Team
			— Strategic Planning Team
			— Global Business Strategy Team
			— Shinhan FSB Research Institute
Sung Ho Wi	Jun. 12, 1958	Deputy President	— General Affairs Team
			— Business Management Team
			— Public Relations Team
			— CSR & Culture Management Team
Jung Kee Min	March 13, 1959	Executive	— Synergy Management Team
		Vice-President	— Information & Technology Planning Team
			— Audit Team
Yee Yong Jo	Feb. 13, 1957	Managing Director	— Compliance Team
Sam Yong Lee	June 11, 1953	Managing Director	— Risk Management Team
Jeong Bae Park	May 6, 1960	Managing Director	— General Affairs Team

Stock Options


(as of Feb 28, 2011)
	No. of		No. of Exercised		No. of Cancelled		No. of Exercisable
	Granted Options		Options		Options		Options
	(A)		(B)		(C)		(D = A - B - C)		Exercise Price
Granted in 2005		2,620,331		983,298		251,300		1,385,733		28,006
Granted in 2006		3,206,173		388,980		480,300		2,336,893		38,829
Granted in 2007		1,231,169		0		205,313		1,025,856		54,560
Granted in 2008		808,700		0		185,396		623,304		49,053
Granted in 2009		614,735		0		614,735		0		23,405
Total		8,481,108		1,372,278		1,737,044		5,371,786	—


Note)		The weighted-average exercise price of outstanding exercisable options as of Feb. 28, 2011 is KRW 40,228.

Employees

(As of Dec 31, 2010)

Total Salaries and wages paid in

Average Payment

Number of

2010

per person

Gender

Employees

Average length of Service

(KRW million)

Male

121

2 yrs 2 mths

12,856

106

Female

3 yrs 3 mths

1,422

Total

145

2 yrs 4 mths

14,278

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

Major Shareholders¹⁾ of Shinhan Financial Group as of Dec. 31, 2010


Name	No. of Common Shares owned		Ownership%
BNP Paribas Group		30,106,276		6.35
National Pension Service		28,957,592		6.11


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

Shareholders holding ownership of more than 1% as of Dec. 31, 2010


			No. of Common
Name			Shares owned		Ownership%

	1	BNP Paribas Group		30,106,276		6.35	%
	2	National Pension Service		28,957,592		6.11	%
	3	Citibank N.A. (ADR Dept)		19,346,872		4.08	%
	4	Shinhan Financial Group
		Employee Stock Ownership Association		17,005,029		3.59	%
	5	Saudi Arabian Monetary Agency		13,300,931		2.80	%
	6	The Lazard Funds Inc.		12,002,550		2.53	%
	7	Mirae Asset Investments Co., Ltd.		8,161,005		1.72	%
	8	The Government of Singapore		6,401,780		1.35	%
	9	Mizuho		5,955,000		1.26	%
	10	Samsung Life Insurance		5,386,699		1.14	%
	11	Daekyo Co., Ltd.		5,076,687		1.07	%
		Others		322,499,166		68.00	%

		Total		474,199,587		100.00	%

Common Share Traded on the Korea Exchange


										(KRW, number of shares)
		July. 2010		Aug. 2010		Sep. 2010		Oct. 2010		Nov. 2010		Dec. 2010
Price per share	High		49,200		49,100		46,200		47,850		44,700		53,600
	Low		44,300		45,100		42,300		43,550		41,950		44,750
	Avg.		47,264		47,000		43,747		45,338		43,618		49,859

Trading Volume			30,636,767		24,140,249		54,422,382		52,563,124		42,003,206		46,027,719

Highest Daily Trading Volume			2,479,092		1,675,582		8,441,035		5,909,348		4,612,237		3,958,956

Lowest Daily Trading Volume			680,553		731,963		1,157,371		1,368,202		1,028,379		881,250

*American Depositary Shares traded on the New York Stock Exchange*

		(USD, number of shares)
		July. 2010		Aug. 2010		Sep. 2010		Oct. 2010		Nov. 2010		Dec. 2010
	High		83.36		84.91		79.40		86.76		81.19		93.82
Price per share	Low		73.09		75.42		72.77		77.55		73.38		79.30
	Avg.		79.50		79.70		75.91		81.19		77.43		86.86

Trading Volume			1,010,625		804,623		849,639		1,305,987		699,240		1,042,042

Highest Daily Trading Volume			96,979		72,180		86,709		165,478		86,105		93,024

Lowest Daily Trading Volume			17,688		11,592		11,067		13,811		11,694		10,738


*1		ADR = 2 Common Shares

6. Related Party Transactions

Loans to Subsidiaries


(KRW billion)
		Origination	Maturity	Lending			Beginning						Ending
Subsidiary	Loan Type	Date	Date	Rate			Balance		Increase		Decrease		Balance
Shinhan Investment Corp.	Loans in KRW	2005-01-31	2010-07-31		5.25	%		70.0		70.0		0.0		0.0
Shinhan Investment Corp.	Loans in KRW	2006-07-31	2012-01-31		5.64	%		100.0		0.0		0.0		100.0
Shinhan Capital	Loans in KRW	2006-09-26	2011-09-26		4.99	%		50.0		0.0		0.0		50.0
Shinhan Capital	Loans in KRW	2007-04-13	2010-04-13		5.38	%		50.0		50.0		0.0		0.0
Shinhan Capital	Loans in KRW	2007-03-23	2012-03-23		5.48	%		50.0		0.0		0.0		50.0
Shinhan Capital	Loans in KRW	2007-06-08	2012-06-08		5.95	%		50.0		0.0		0.0		50.0
Shinhan Capital	Loans in KRW	2007-09-27	2010-09-27		6.05	%		100.0		100.0		0.0		0.0
Shinhan Capital	Loans in KRW	2007-11-27	2010-11-27		6.37	%		50.0		50.0		0.0		0.0
Shinhan Card	Loans in KRW	2007-11-27	2012-11-27		6.41	%		100.0		0.0		0.0		100.0
Shinhan Capital	Loans in KRW	2007-12-18	2010-12-18		6.83	%		50.0		50.0		0.0		0.0
Shinhan Card	Loans in KRW	2007-12-18	2012-12-18		6.86	%		50.0		0.0		0.0		50.0
Shinhan Capital	Loans in KRW	2008-01-23	2011-01-23		6.60	%		50.0		0.0		0.0		50.0
Shinhan Capital	Loans in KRW	2008-01-23	2013-01-23		6.60	%		50.0		0.0		0.0		50.0
Shinhan Card	Loans in KRW	2008-02-21	2011-02-21		5.66	%		150.0		0.0		0.0		150.0
Shinhan Card	Loans in KRW	2008-03-12	2011-03-12		5.84	%		200.0		0.0		0.0		200.0
Shinhan Capital	Loans in KRW	2008-03-12	2011-03-12		5.84	%		50.0		0.0		0.0		50.0
Shinhan Card	Loans in KRW	2008-06-27	2011-06-27		6.53	%		200.0		0.0		0.0		200.0
Shinhan Card	Loans in KRW	2008-07-31	2011-07-31		6.90	%		100.0		0.0		0.0		100.0
Shinhan Capital	Loans in KRW	2008-07-31	2011-07-31		6.90	%		50.0		0.0		0.0		50.0
Shinhan Capital	Loans in KRW	2010-09-28	2013-09-28		4.12	%		0.0		0.0		100.0		100.0
Shinhan Card	Loans in KRW	2010-10-29	2015-10-29		4.37	%		0.0		0.0		100.0		100.0
Shinhan PE	Loans in KRW	2010-08-13	2011-08-12		3.64	%		0.0		0.0		5.0		5.0
Shinhan PE	Loans in KRW	2009-08-13	2010-08-13		3.99	%		5.0		5.0		0.0		0.0
Total	—	—	—		—			1,575.0		325.0		205.0		1,455.0

Exhibit 99-1

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

Exhibit 99-2

Independent Accountant’s Audit Report (Consolidated Financial Statements) of Shinhan Financial Group as of December 31, 2010

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, 2011