Edgar Filing: SHINHAN FINANCIAL GROUP CO LTD

Form 6-K

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

FORM 6-K

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

For the Month of May 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 2009 1Q Business Report

On May 15, 2009, Shinhan Financial Group (“SFG”) filed its 2009 1Q Business Report (the “Business Report”) with the Financial Supervisory Service of the Republic of Korea (“Korea”) pursuant to the Financial Investment Services and Capital Market Act of Korea. This is the summary of the Business Report translated into English. Non-material or previously disclosed information are omitted or abridged.

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

Table of Contents


1.		Introduction of the Group
2.		Business Results
3.		Independent Auditor
4.		Directors, Executive Officers and Employees
5.		Major Shareholder and Market Price Information of Our Common Shares and ADRs
6.		Related Party Transactions
EX-99.1

Exhibit 99-1
Independent Accountant’s Review Report (Non-consolidated Financial Statements) of Shinhan Financial Group as of March 31, 2009

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: 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 March 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
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 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 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


Types of Shares	Number of Shares
	As of December 31, 2008		As of March 31, 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

2. Business Results

Operation Results

(KRW billion)


	2009		2008		2007
	(Jan.1~Mar.31)		(Jan.1~Dec.31)		(Jan.1~Dec.31)
Operating income		204.9		3,032.2		3,737.4
Non-operating income		31.6		223.6		277.7
Non-operating expense		32.5		262.1		102.0
Earnings before income tax		204.0		2,993.7		3,913.1
Income taxes		81.6		968.5		549.0
Pre-acquisition income in subsidiaries		0.0		-0.4		874.1
Consolidated net income		122.4		2,025.6		2,490.0
Net income in majority interest		118.1		2,018.6		2,396.4
Net income in minority interest		4.3		7.0		93.6

Source and Use of Funds

Source of Funds


			2009								2008								2007
			(Jan.1~Mar.31)								(Jan.1~Dec.31)								(Jan.1~Dec.31)
			Average Balance				Interest		Interest		Average Balance				Interest		Interest		Average Balance				Interest		Interest
(In KRW 100 million, %)					Ratio (%)		Paid		Rate (%)				Ratio (%)		Paid		Rate (%)				Ratio(%)		Paid		Rate (%)
Source	Fund in KRW	Deposits		1,080,983		40.68		10,002		3.75		958,347		38.71		39,116		4.08		876,195		40.78		26,967		3.08
		CD		130,067		4.89		2,015		6.28		157,372		6.36		9,600		6.10		149,773		6.97		8,076		5.39
		Borrowing		68,481		2.58		840		4.97		67,277		2.72		3,332		4.95		60,264		2.81		2,437		4.04
		Call Loan		6,459		0.24		34		2.13		21,912		0.89		1,043		4.76		19,148		0.89		1,130		5.90
		Debenture		413,718		15.57		5,903		5.79		418,532		16.91		24,970		5.97		369,104		17.18		18,850		5.11
		Others		101,972		3.84		1,027		4.08		76,243		3.08		4,259		5.59		57,816		2.69		3,519		6.09

		Subtotal		1,801,680		67.79		19,821		4.46		1,699,683		68.66		82,320		4.84		1,532,300		71.32		60,980		3.98

	Fund in Foreign Currency	Deposits		95,207		3.58		560		2.39		67,431		2.72		1,791		2.66		49,953		2.33		1,532		3.07
		Borrowing		93,661		3.52		660		2.86		97,945		3.96		3,083		3.15		67,179		3.13		2,408		3.58
		Call Loan		33,188		1.25		270		3.30		10,913		0.44		466		4.27		10,733		0.50		524		4.88
		Debenture		53,611		2.02		388		2.94		49,316		1.99		1,897		3.85		39,398		1.83		2,068		5.25
		Others		3,780		0.14		33		3.54		10,938		0.44		445		4.07		23,062		1.07		712		3.09

		Subtotal		279,447		10.51		1,911		2.77		236,543		9.56		7,682		3.25		190,324		8.86		7,243		3.81

Interest bearing funding				2,081,127		78.31		21,732		4.23		1,936,226		78.22		90,002		4.65		1,722,624		80.18		68,224		3.96

	Others	Shareholder equity		185,490		6.98		0		0.00		181,847		7.35		0		0.00		174,937		8.14		0		0.00
		Loan loss reserve		16,036		0.60		0		0.00		15,707		0.63		0		0.00		11,147		0.52		0		0.00
		Others		374,951		14.11		0		0.00		341,710		13.80		0		0.00		239,699		11.16		0		0.00

Non-interest bearing funding				576,477		21.69		0		0.00		539,264		21.78		0		0.00		425,783		19.82		0		0.00

Total Funding				2,657,604		100.00		21,732		3.32		2,475,490		100.00		90,002		3.64		2,148,408		100.00		68,224		3.18


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

Use of Funds


			2009										2008										2007
			(Jan.1~Mar.31)										(Jan.1~Dec.31)										(Jan.1~Dec.31)
			Average Balance						Interest		Interest		Average Balance						Interest		Interest		Average Balance						Interest		Interest
(In KRW 100 million, %)						Ratio (%)			Paid		Rate (%)					Ratio (%)			Paid		Rate (%)					Ratio (%)			Paid		Rate (%)
Use	Fund in KRW	Deposits		113,976			4.29			491		1.75		73,760			2.98			2,581		3.50		67,425			3.14			1,501		2.23
		Securities		474,224			17.84			5,308		4.54		425,433			17.19			20,497		4.82		389,806			18.14			17,014		4.36
		Loans		1,300,756			48.94			20,331		6.34		1,224,471			49.46			89,602		7.32		1,078,194			50.19			72,320		6.71
		(Household)		594,107			22.35			8,766		5.98		574,061			23.19			40,925		7.13		528,181			24.58			35,298		6.68
		(Corporate)		706,649			26.59			11,565		6.64		650,410			26.27			48,677		7.48		550,013			25.60			37,022		6.73
		Advances for customers		1,145			0.04			4		1.42		397			0.02			11		2.77		175			0.01			8		4.29
		Call Loan		19,080			0.72			96		2.04		10,667			0.43			496		4.65		8,609			0.40			442		5.13
		Debenture		29,408			1.11			424		5.85		32,457			1.31			2,041		6.29		41,847			1.95			2,567		6.13
		Credit Card Receivable		105,519			3.97			7,568		29.09		100,551			4.06			27,839		27.69		94,300			4.39			23,240		24.64
		(Card Loan)		25,170			0.95			1,118		18.01		29,681			1.20			5,351		18.03		31,215			1.45			5,338		17.10
		Others		72,714			2.74			1,132		6.31		65,796			2.66			4,715		7.17		72,038			3.35			4,986		6.92
		Loan loss reserve		(33,976	)		(1.28	)		0		0.00		(30,502	)		(1.23	)		0		0.00		(28,316	)		(1.32	)		0		0.00

		Subtotal		2,082,846			78.37			35,354		6.88		1,903,030			76.87			147,782		7.77		1,724,078			80.25			122,077		7.08

	Fund in Foreign Currency	Deposits		24,806			0.93			43		0.70		16,573			0.67			394		2.38		9,343			0.43			292		3.13
		Securities		23,474			0.88			196		3.39		20,117			0.81			891		4.43		17,486			0.81			727		4.16
		Loan		147,285			5.54			1,590		4.38		141,759			5.73			6,873		4.85		78,387			3.65			4,564		5.82
		Call loan		22,115			0.83			32		0.59		8,640			0.35			235		2.72		5,360			0.25			299		5.58
		Bills bought		31,346			1.18			501		6.48		39,621			1.60			1,791		4.52		35,803			1.67			1,901		5.31
		Others		4,722			0.18			58		4.98		5,493			0.22			466		8.48		68,846			3.20			1,282		1.86
		Loan loss reserve		(2,652	)		(0.10	)		0		0.00		(2,342	)		(0.09	)		0		0.00		(1,441	)		(0.07	)				0.00
		Subtotal		251,096			9.45			2,420		3.91		229,861			9.29			10,650		4.63		213,785			9.95			9,065		4.24

Interest earning funding				2,333,942			87.82			37,774		6.56		2,132,890			86.16			158,432		7.43		1,937,864			90.20			131,142		6.77

	Others	Cash		21,578			0.81			0		0.00		23,746			0.96			0		0.00		27,901			1.30			0		0.00
		PP&E		24,065			0.91			0		0.00		24,194			0.98			0		0.00		75,437			3.51			0		0.00
		Others		278,019			10.46			0		0.00		294,660			11.90			0		0.00		107,206			4.99			0		0.00

Non-interest earning funding				323,662			12.18			0		0.00		342,600			13.84			0		0.00		210,544			9.80			0		0.00

Total use of funds				2,657,604			100.00			37,774		5.76		2,475,490			100.00			158,432		6.40		2,148,408			100.00			131,142		6.10


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

Other Financial Information

Financial information for 2009 1Q contained in this section is provisional figures.

Group BIS Ratio

(KRW million)


	2009 1Q			2008			2007
Aggregate Amount of Equity Capital (A)		21,623,661			18,746,446			15,945,940
Risk-Weighted Assets (B)		187,133,717			183,766,217			161,849,385
BIS Ratio (A/B) ¹⁾		11.56	%		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)


	2009 1Q			2008			2007
Won Assets due within 3 months (A)		1,630,222			920,661			220,009
Won Liabilities due within 3 months (B)		876,334			690,397			209,888
Won Liquidity Ratio (A/B)		186.03	%		133.35	%		104.82	%

Liabilities to Equity Ratio

(KRW million)


	2009 1Q			2008			2007
Liabilities (A)		7,722,359			8,307,683			7,349,727
Equity (B)		18,782,611			17,605,119			17,977,801
Liabilities to Equity Ratio (A/B)		41.11	%		47.19	%		40.88	%

Capital Adequacy Ratio and Other Ratios of Certain Subsidiaries

(1) BIS Capital Adequacy Ratio (%) ¹⁾


	2009 1Q	2008	2007
Shinhan Bank ²⁾	14.45	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) 2007 ratios for Shinhan Bank are based on Basel I. Basel II FIRB Approach was applied in calculating BIS for 2008 and 2009 1Q.

(2) Adjusted Equity Capital Ratio (%)


	2009 1Q	2008	2007
Shinhan Card	21.51	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 card companies. Under these guidelines, Shinhan Card is required to maintain a minimum adjusted equity capital ratio of 8%.

(3) Net Capital Ratio (%)


	Mar.31 2009	Mar.31 2008	Mar.31 2007
Good Morning Shinhan Securities	678.8	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 (%)


	Mar.31 2009	Mar.31 2008	Mar.31 2007
Shinhan Life Insurance	207.74	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)


	Mar. 31, 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		2,046,184		1.35		1,306,316		0.85		848,846		0.63
Shinhan Card ²⁾		367,922		3.20		339,101		2.91		448,866		3.71

Mar.31, 2009

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⁾

125,366

12.14

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.

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

(KRW million)


			Jan. 1, 2009~		Jan. 1, 2008~		Jan. 1, 2007~
			Mar. 31, 2009		Dec. 31, 2008		Dec. 31, 2007
Shinhan Bank	Loan Loss Allowance	Domestic		3,251,442		2,945,910		2,317,075
		Overseas		66,253		81,927		76,175
		Total		3,317,695		3,027,837		2,393,250
	Write-offs			130,958		340,942		186,316

Shinhan Card	Loan Loss Allowance	Domestic		849,429		773,961		947,737
		Overseas		—		—		—
		Total		849,429		773,961		947,737
	Write-offs			106,493		603,883		430,535


			Apr. 1, 2008~		Apr. 1, 2007~		Apr. 1, 2006~
			Mar. 31, 2009		Mar. 31, 2008		Mar. 31, 2007
GMSH Securities	Loan Loss Allowance	Domestic		104,212		33,005		30,776
		Overseas		—		—		—
		Total		104,212		33,005		30,776
	Write-offs			78,153		983		1,117

3. Independent Auditor

Audit Opinion for the last 3 years


	2009 1Q	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.


Year	Auditor	Payment		Details	Working
		(KRW mil.)			hours
2009 1Q	KPMG Samjong Accounting Corp.		355	Review/Audit of Financial Statements	796 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

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, 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	—	from March 17, 2009
				1 year starting
Young Woo Kim	May 1, 1952	O	Audit Committee member	from March 17, 2009
				1 year starting
Yo Koo Kim	Mar. 23, 1950	O	—	from March 17, 2009
				1 year starting
Shee Yul Ryoo	Sept. 5, 1938	O	Board Steering Committee member	1 year starting
			Compensation Committee member	from March 17, 2009
Ke Sup Yun	May 20, 1945	O	Risk Management Committee member	1 year starting
			Compensation Committee member	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	1 year starting
			Board Steering Committee member	from March 17, 2009
			Compensation Committee member
Kap Young Jeong	Aug. 22, 1951	O	Audit Committee member	1 year starting
			Board Steering Committee member	from March 17, 2009
			Compensation Committee member
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	1 year starting
			Audit Committee member	from March 17, 2009
			Compensation Committee member
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	- Finance Management Team
		and Chief Financial	- Investor Relations Team
		Officer	- 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 31, 2009)


	No. of		No. of Exercised		No. of Cancelled		No. of Exercisable
	Granted Options		Options		Options		Options
	(A)		(B)		(C)		(D = A - B - C)		Exercise Price
Granted in 2003		1,020,416		958,207		11,600		50,609		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

Total		10,830,328		2,587,703		1,631,525		6,611,100


Note)		The weighted-average exercise price of outstanding exercisable options as of March 31, 2009 is KRW 39,198.

Employees

(As of Mar. 31, 2009)

Total Salaries and wages

Average Payment

Number of

paid in 1Q 2009

per person

Employees

Average length of Service

(KRW million)

Total

3 yrs 3 mths

2,007

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

Major Shareholders¹⁾ of Shinhan Financial Group as of Mar. 31, 2008


Name	No. of Common Shares owned		Ownership%
BNP Paribas Group		38,574,239		8.13
Korea Nat’l Pension Fund ²⁾		32,350,153		6.82
Total		70,924,392		14.95


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

2)		Based on the public filing submitted by the Korea National Pension Fund on April 7, 2009 to report changes in beneficial ownership. Number of common shares owned is as of April 7, 2009.

Common Share Traded on the Korea Exchange

(KRW, number of shares)


		Oct. 2008		Nov. 2008		Dec. 2008		Jan. 2009		Feb. 2009		Mar. 2009
Price per share	High		42,000		37,600		34,900		32,950		29,700		27,700
	Low		29,000		25,600		29,500		25,500		21,250		20,500
	Avg.		36,452		31,730		31,626		29,603		25,838		24,016
Trading Volume			85,794,289		66,940,466		59,554,052		65,154,136		86,825,512		114,074,594
Highest Daily Trading Volume			8,806,724		5,603,354		7,687,124		5,207,842		7,133,276		9,482,933
Lowest Daily Trading Volume			1,943,420		2,226,739		930,833		1,620,498		2,336,662		2,689,026

American Depositary Shares traded on the New York Stock Exchange

(USD, number of shares)


		Oct. 2008		Nov. 2008		Dec. 2008		Jan. 2009		Feb. 2009		Mar. 2009
Price per share	High		71.00		61.61		52.73		50.34		43.62		41.46
	Low		43.80		32.68		37.42		36.82		28.00		26.25
	Avg.		55.33		45.63		46.90		43.04		35.93		33.17
Trading Volume			2,863,845		2,278,490		2,695,983		2,583,218		2,805,315		4,766,767
Highest Daily Trading Volume			203,500		192,527		277,442		286,052		304,636		347,113
Lowest Daily Trading Volume			39,550		46,457		20,417		57,173		76,461		122,175


*		1 ADR = 2 Common Shares

6. Related Party Transactions


Loans to Subsidiaries		(KRW billion)


			Origination		Maturity		Funding			Lending			Beginning						Ending
Subsidiary	Loan Type		Date		Date		Rate			Rate			Balance		Increase		Decrease		Balance
Shinhan 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
GMSH Securities	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
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 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	Loan in KRW			2008-12-26		2015-12-26		—			9.00	%		10		—		10		—
Shinhan Capital	Loan in KRW			2009-01-06		2010-01-05		6.53	%		6.63	%		—		50		—		50

Total		—		—		—		—			—			2,410		50		230		2,230

Exhibit 99-1
Independent Accountant’s Review Report (Non-consolidated Financial Statements) of Shinhan Financial Group as of March 31, 2009

SIGNATURES

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


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

Date : May 15, 2009