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 August 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 ¨

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 ¨ 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 2011 1H Business Report

On August 29, 2011, Shinhan Financial Group (“SFG”) filed its 2011 1H 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 International Financial Reporting Standards.

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

Exhibit 99-1

Independent Accountant’s Audit Report (Separate Financial Statements) of Shinhan Financial Group as of June 30, 2011

Exhibit 99-2

Independent Accountant’s Audit Report (Consolidated Financial Statements) of Shinhan Financial Group as of June 30, 2011

1. Introduction of the Group

Company History in 2009 through 2011

•

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

Principal Subsidiaries under Korean Law (as of June 30, 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		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.

Indirect subsidiaries held through direct subsidiaries


Direct Subsidiaries	Indirect Subsidiaries	Ownership by the Parent
	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	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 Corporation Europe Ltd.		100.0	%
	Shinhan Investment Corporation USA Inc.		100.0	%
Shinhan Investment Corp.	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 owns 6.5% of KOFC Shinhan Frontier Champ 2010-4 PEF Investment Corp.

Number of Shares (as of June 30, 2011)


Types of Shares	Number of Shares
Common Shares		474,199,587
Redeemable Preferred Shares		40,090,000
Redeemable Convertible Preferred Shares		14,721,000

Total		529,010,587

Note)

On April 2011, a total of 11,100,000 shares of 12^th series Redeemable Preferred Shares were issued through a 3^rd party assignment. Please refer to the Form 6-K filed on April 7, 2011 for detail of the terms and conditions of these shares.

2. Business Results


Operation Results				(KRW billion)


	2011 (Jan. 1 ~ June 30)		2010 (Jan. 1 ~ June 31)
Operating income		2,529.8		1,822.0
Equity in income(loss) of associates		21.7		3.6
Earnings before income tax		2,551.5		1,825.6
Income taxes		577.1		372.4

Consolidated net income		1,974.3		1,453.2
Net income in majority interest		1,889.1		1,365.1
Net income in minority interest		85.2		88.1

F	Some of the totals may not sum due to rounding

Source and Use of Funds

Source of Funds


		2011								2010
		Jan. 1 ~ June 30								Jan. 1 ~ June 30
(In KRW billion, %)		Average Balance		Proportions (%)		Interest Paid		Interest Rate (%)		Average Balance		Proportions (%)		Interest Paid		Interest Rate (%)
	Deposits		152,389.6		61.04		1,958.6		2.57		148,937.6		62.23		1,977.5		2.66
	Borrowings		18,643.1		7.47		217.3		2.33		17,369.1		7.26		204.7		2.36
Source	Debentures		40,051.4		16.04		965.2		4.82		40,312.1		16.84		1,011.1		5.02
	Other Liabilities		38,564.5		15.45		—		—		32,703.1		13.66		—		—
	Total Liabilities		249,648.7		100.00		—		—		239,321.8		100.00		—		—
	Stockholder’s Equity		28,041.7		—		—		—		25,194.1		—		—		—
	Currency & Due from Banks		13,605.7		4.90		124.2		1.83		15,399.2		5.82		81.5		1.06
	Loans		184,144.2		66.31		5,451.0		5.92		171,537.8		64.85		5,229.0		6.10
	Loan in KRW		141,160.8		50.83		3,977.2		5.63		134,177.8		50.73		3,814.1		5.69
	Loan in Foreign Currency		9,044.2		3.26		183.2		4.05		8,745.7		3.31		183.0		4.18
Use	Credit Card Accounts		17,556.6		6.32		930.2		10.60		15,717.8		5.94		860.1		10.94
	Others		16,382.6		5.90		360.4		4.40		12,896.5		4.88		372.0		5.77
	HTM Assets		12,534.9		4.51		325.3		5.19		13,152.6		4.97		350.9		5.34
	Other Assets		67,405.7		24.27		—		—		64,426.3		24.36		—		—
	Total Assets		277,690.4		100.00		—		—		264,515.9		100.00		—		—

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

Other Financial Information

Financial information for June 30, 2011 contained in this section are provisional figures.


*Group BIS Ratio*			(KRW billion)

	June 30, 2011		Dec. 31, 2010
Aggregate Amount of Equity Capital (A)		25,777.8		23.369.7
Risk-Weighted Assets (B)		190,312.2		188,785.7
BIS Ratio (A/B) ¹⁾		13.55%		12.38%

1)	In accordance with the amendments in the Financial Holding Company Guidelines of the Financial Service Commission (“FSC”), the Group BIS Ratio under BASEL I. is used as an index for measuring capital adequacy.

2)	BIS ratio for Dec. 31, 2010 based on K GAAP is 12.77%


*Won Liquidity Ratio*				(KRW billion)


	June 30, 2011	Dec. 31, 2010
Won Assets due within 1 month (A)	3,211.2	972.6
Won Liabilities due within 1 month (B)	99.8	246.0
Won Liquidity Ratio (A/B)	3,218.43%	395.31%


*Liabilities to Equity Ratio*				(KRW billion)


	June 30, 2011	Dec. 31, 2010
Liabilities (A)	7,831.7	6,907.6
Equity (B)	22,370.2	20,753.0
Liabilities to Equity Ratio (A/B)	35.01%	33.29%

Capital Adequacy Ratio and Other Ratios of Major Subsidiaries


(1) BIS Capital Adequacy Ratio (%)


	June 30, 2011	Dec. 31, 2010
Shinhan Bank ³⁾	15.75	15.47
Jeju Bank	13.47	13.40

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 Shinhan Bank’s BIS Capital Adequacy Ratios. Basel II TSA Approach was applied in calculating Jeju Bank’s BIS Capital Adequacy Ratios.

3)	Shinhan Bank’s BIS ratio for Dec. 31, 2010 based on K GAAP is 15.93%


(2) Adjusted Equity Capital Ratio (%)
	June 30, 2011	Dec. 31, 2010
Shinhan Card	24.57	25.18
Shinhan Capital	13.89	14.23

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. Under these guidelines, Shinhan Card and Shinhan Capital are required to maintain a minimum adjusted equity capital ratio of 8%.


(3) Net Capital Ratio (%)


	June 30, 2011	Dec. 31, 2010
Shinhan Investment Corp.	630.09	658.31
Shinhan BNP Paribas Asset Management	616.95	708.31

*	Net Capital Ratio is computed in accordance with the guidelines issued by the FSC. Under these guidelines, Shinhan Investment Corporation & Shinhan BNP Paribas Asset Management are required to maintain a minimum net capital ratio of 100%.


(4) Solvency Margin Ratio (%)


	June 30, 2011	Dec. 31, 2010
Shinhan Life Insurance	325.81	397.93

*	Under the guidelines issued by the FSC, Shinhan Life Insurance is required to maintain a minimum solvency margin ratio of 100%.


(6) Liability to Equity Ratio (%)


	June 30, 2011		Dec. 31, 2010
Shinhan Private Equity		233.3		216.2

Non- Performing Loans of Certain Subsidiaries ¹⁾


(1) Non- Performing Loans								(KRW billion)


	June 30, 2011				Dec. 31, 2010
	Balance of NPL		NPL to total Loans (%)		Balance of NPL		NPL to total Loans (%)
Shinhan Bank ¹⁾		1,530.7		0.96		1,410.0		0.91
Jeju Bank¹⁾		34.7		1.57		28.5		1.28
Shinhan Card ²⁾		331.4		1.62		325.9		1.60
Shinhan Investment ²⁾		144.3		12.33		186.9		16.32
Shinhan Life Insurance		6.2		0.22		6.0		0.21
Shinhan Capital		73.3		2.41		76.5		2.38

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.

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 billion)


		Jan. 1, 2011~ June. 30, 2011		Jan. 1, 2010~ June 30, 2010
	Allowance for Possible Loan Losses		1,723.7		1,805.1
	Allowance for doubtful accounts on Acceptance and Guarantees		132.3		208.7
	Allowances for Losses Related to Unused Ceiling		87.5		85.8
Shinhan Bank	Other Allowances		175.2		111.8
	Allowance for Valuation of Bonds		1.0		1.0
	Total		2,119.8		2,212.4

	Write-offs		360.6		709.8
	Allowance for Possible Loan Losses		31.0		39.7
	Allowance for doubtful accounts on Acceptance and Guarantees		0.3		0.2
	Allowances for Losses Related to Unused Ceiling		1.2		1.7
Jeju Bank	Other Allowances		0.6		—
	Allowance for Valuation of Bonds		—		—
	Total		33.1		41.6

	Write-offs		7.0		10.6
	Allowance for Possible Loan Losses		696.1		703.8
Shinhan Card	Allowance for reward on credit card use		21.9		25.2
	Allowances for Losses Related to Unused Ceiling		360.9		367.5
	Other Allowances		9.3		8.8
	Total		1,088.2		1,105.3

	Write-offs		205.3		494.4
	Allowance for Possible Loan Losses		120.2		151.3
Shinhan Investment Corp.	Other Allowances		25.0		25.3
	Total		145.2		176.6

	Write-offs		—		8.0
Shinhan Life Insurance	Allowance for Possible Loan Losses		30.9		28.5
	Total		30.9		28.5

	Write-offs		2.2		6.8
	Allowance for Possible Loan Losses		66.6		61.5
Shinhan Capital	Total		66.6		61.5

	Write-offs		29.8		27.8


*Twenty Largest Exposures by Borrower*			(KRW billion)


As of June 30, 2011 Consolidated basis	Loans in Won		Loans in Foreign Currency		Securities		Guarantees and Acceptancss		Others		Total Exposures
Ministry of Strategy & Finance		—		—		8,883		—		—		8,883
Bank of Korea		2,500		—		5,568		—		—		8,068
Hyundai Heavy Industries Co., Ltd.		30		332		702		1,816		—		2,880
Korea Land & Housing Corporation		—		—		2,448		—		—		2,448
Industrial Bank of Korea		554		11		1,858		—		—		2,423
Korea Deposit Insurance Corporation		174		—		2,049		—		—		2,223
Korea Development Bank		19		—		1,650		—		—		1,669
Woori Bank		97		95		1,215		—		—		1,407
Hana Bank		14		5		1,253		—		—		1,272
Samsung Heavy Industries Co., LTd.		—		16		—		1,239		—		1,256
National Agricultural Cooperative Federation		88		34		1,042		3		—		1,167
POSCO		28		126		933		38		—		1,124
Songdo Cosmopolitan City Development Inc.		1,000		—		100		—		—		1,100
SH Corporation		100		—		976		—		—		1,077
Korea Finance Corporation		—		—		974		—		—		974
Hyundai Samho Heavy Industries Co., Ltd.		1		44		35		806		—		885
Samsung C&T		35		89		571		87		—		782
KEPCO		1		—		767		1		—		770
Hynix		—		292		373		96		—		762
Korea Securities Finance Corporation		50		—		679		—		—		729

Total		4,691		1,044		32,074		4,087		—		41,896

F	Some of the totals may not sum due to rounding

Exposure to Main Debtor Groups

(KRW billion)


As of June 30, 2011 Consolidated basis	Loans in Won		Loans in Foreign Currency		Securities		Guarantees and Acceptances		Others		Total Exposures
Hyundai Heavy Industries		141		544		791		3,219		—		4,694
Samsung		243		1,099		1,138		1,573		—		4,053
Hyundai Motors		901		1,143		656		466		—		3,166
LG		1,296		584		215		189		—		2,283
SK		337		428		671		659		—		2,095
POSCO		159		305		954		334		6		1,758
Lotte		588		84		424		118		1		1,215
GS		280		192		310		397		—		1,179
LS		195		286		146		315		—		943
Hynix		—		292		373		96		—		762

Total		4,140		4,957		5,678		7,367		8		22,149

F	Some of the totals may not sum due to rounding


*Loan Concentration by Industry*				(KRW billion)


	Total Exposures
As of June 30, 2011 Consolidated basis	Amount		Weight (%)
Finance and insurance		19,117		9.65	%
Manufacturing		33,047		16.68	%
Retail and wholesale		11,424		5.77	%
Real Estate, leasing and service		15,737		7.94	%
Construction		4,468		2.25	%
Hotel and leisure		3,298		1.66	%
Others		20,661		10.43	%
Consumers		90,395		45.62	%

Total		198,147		100.00	%

Top Twenty Non-Performing Loans

(KRW billion)


Borrower	Industry	Gross Principal Outstanding		Allowance for Loan Losses
A	Real estate, leasing and service		204		93
B	Finance and insurance		65		14
C	Real estate, leasing and service		30		5
D	Arts, sports and leisure service		27		1
E	Transportation		16		13
F	Real estate, leasing and service		15		0
G	Manufacturing		13		2
H	Arts, sports and leisure service		11		0
I	Transportation		10		0
J	Real estate, leasing and service		9		1
K	Real estate, leasing and service		8		0
L	Others		8		2
M	Transportation		7		0
N	Real estate, leasing and service		7		0
O	Manufacturing		7		1
P	Manufacturing		7		0
Q	Real estate, leasing and service		6		0
R	Arts, sports and leisure service		6		0
S	Construction		5		1
T	Whole Sale and Retail		5		1

Total			464		135

1)	Consolidated basis as of June 30, 2011.

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

F	Some of the totals may not sum due to rounding

3. Independent Auditor

Audit Opinion for the last 3 years


	1H FY 2011	FY 2010	FY 2009
Audit Opinion	—	Unqualified	Unqualified

*	For the 1^st half 2011, the independent accountant conducted a review for our financial statements instead of auditing them.

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 preparations.

Year

Auditor

Payment
(KRW mil.)

Details

Working
hours

2011

KPMG Samjong Accounting Corp.

487

Review/Audit of Financial Statements

3,600 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

*	Payment for the 1^st half 2011 covers the full year of 2011.

4. Directors, Executive Officers and Employees

Directors and Executive Officers


1) Executive Directors

Name

Month and Year
of Birth

Position

Service Term

Dong Woo Han

Nov. 1948

Chairman of Shinhan Financial Group

Board Steering Committee chair

3 years starting from March 23, 2011

2)	Non-Executive Directors

Currently, 10 non-executive directors are in office, 9 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:


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

*	One June 16, 2011, Sun Tae Hwang resigned from outside director due to his personal reasons.

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	Month and Year of Birth	Position	In charge of
Buhmsoo Choi	Aug. 1956	Deputy President	- Strategic Planning Team - Global Business Strategy Team - Shinhan FSB Research Institute
Jae-Gwang Soh	Aug. 1961	Executive Vice-President	- Synergy Management Team - Information & Technology Planning Team - Audit Team
Jung Kee Min	Mar. 1959	Executive Vice-President & Chief Financial Officer	- Finance Management Team - Investor Relations Team - Business Management Team
Dong Hwan Lee	Sept. 1959	Executive Vice-President	- Public Relations Team - CSR & Culture Management Team - General Affairs Team
Yee Yong Jo	Feb. 1957	Managing Director	- Compliance Team
Bo Hyuk Yim	Mar. 1961	Managing Director	- Risk Management Team


*Stock Options*								(as of July 31, 2011)


	No. of Granted Options (A)		No. of Exercised Options (B)		No. of Cancelled Options (C)		No. of Exercisable Options (D = A – B – C)		Exercise Price
Granted in 2005		2,620,331		1,144,950		251,300		1,224,081		28,006
Granted in 2006		3,206,173		482,956		480,300		2,242,917		38,829
Granted in 2007		1,231,169		0		205,313		1,025,856		54,560
Granted in 2008		805,174		0		185,396		619,778		49,053

Note	1) The weighted-average exercise price of outstanding exercisable options as of July 31, 2011 is KRW 41,381.

2) The closing price of our common stock was KRW 50,500 on July 31, 2011.


*Employees*								(As of June 30, 2011)


Gender	Number of Employees	Average length of Service	Total Salaries and wages paid in 1^st half of 2011 (KRW million)	Average Payment per person (KRW million)
Male	114	2 yrs 2 mths	5,850	49
Female	22	3 yrs 2 mths	645	27

Total	136	2 yrs 4 mths	6,495	45

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

Major Shareholders¹⁾ of Shinhan Financial Group as of June 30, 2011


Name	No. of Common Shares owned	Ownership%
BNP Paribas Group	30,106,276	6.35%
National Pension Service	28,957,592 ²⁾	6.11% ²⁾

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

2)	As of December 31, 2010

Share ownership of Employee Stock Ownership Association

Beginning Balance

(Jan.1, 2011)

Increase

Decrease

Ending Balance
(June 30, 2011)

Ownership%
(June 30, 2011)

17,005,029

1,832,543

1,864,104

16,973,468

3.58%

Common Share Traded on the Korea Exchange

(KRW, number of shares)


		Jan. 2011		Feb. 2011		Mar. 2011		Apr. 2011		May 2011		June 2011
	High		53,800		51,600		50,900		52,500		52,400		51,300
Price per share	Low		49,500		47,100		46,350		46,250		47,200		48,350
	Avg.		51,540		48,915		48,850		48,740		49,168		50,110
Trading Volume			35,567,942		28,003,566		38,231,286		53,445,066		35,492,587		33,256,848
Highest Daily Trading Volume			3,427,084		2,504,871		3,283,176		6,867,957		2,717,663		3,350,287
Lowest Daily Trading Volume			1,010,676		926,689		913,976		1,172,616		896,756		856,464

American Depositary Shares traded on the New York Stock Exchange

(USD, number of shares)


		Jan. 2011		Feb. 2011		Mar. 2011		Apr. 2011		May 2011		June 2011

	High		95.65		94.52		91.09		97.02		97.40		95.95
Price per share	Low		89.03		83.56		82.76		85.29		87.07		89.41
	Avg.		92.03		88.55		87.27		89.41		91.11		92.86
Trading Volume			964,589		810,077		858,087		1,051,425		1,149,641		992,430
Highest Daily Trading Volume			149,733		86,100		73,114		209,097		137,183		90,671
Lowest Daily Trading Volume			14,989		18,996		15,543		13,368		16,587		18,769

*	1 ADR = 2 Common Shares

6. Related Party Transactions

Loans to Subsidiaries

(As of June 30, 2011, KRW billion)


Subsidiary	Loan Type		Origination Date		Maturity Date		Lending Rate			Beginning Balance (Jan. 1, 2011)		Decrease		Increase		Ending Balance (June 30, 2011)
Shinhan Investment Corp.		Loans in KRW		2006-07-31		2012-01-31		5.64	%		100		—		—		100
		Loans in KRW		2007-11-27		2012-11-27		6.41	%		100		—		—		100
		Loans in KRW		2007-12-18		2012-12-18		6.86	%		50		—		—		50
		Loans in KRW		2008-02-21		2011-02-21		5.66	%		150		150		—		—
		Loans in KRW		2008-03-12		2011-03-12		5.84	%		200		200		—		—
Shinhan Card		Loans in KRW		2008-06-27		2011-06-27		6.53	%		200		200		—		—
		Loans in KRW		2008-07-31		2011-07-31		6.90	%		100		—		—		100
		Loans in KRW		2010-10-29		2015-10-29		4.37	%		100		—		—		100
		Loans in KRW		2011-01-28		2016-01-28		4.91	%		—		—		100		100
		Loans in KRW		2011-02-24		2016-02-24		4.82	%		—		—		250		250
		Loans in KRW		2011-05-17		2016-05-17		4.47	%		—		—		100		100
		Loans in KRW		2006-09-26		2011-09-26		4.99	%		50		—		—		50
		Loans in KRW		2007-03-23		2012-03-23		5.48	%		50		—		—		50
		Loans in KRW		2007-06-08		2012-06-08		5.95	%		50		—		—		50
		Loans in KRW		2008-01-23		2011-01-23		6.60	%		50		50		—		—
		Loans in KRW		2008-01-23		2013-01-23		6.60	%		50		0		—		50
Shinhan Capital		Loans in KRW		2008-03-12		2011-03-12		5.84	%		50		50		—		—
		Loans in KRW		2008-07-31		2011-07-31		6.90	%		50		—		—		50
		Loans in KRW		2010-09-28		2013-09-28		4.12	%		100		—		—		100
		Loans in KRW		2011-01-28		2014-01-28		4.53	%		—		—		50		50
		Loans in KRW		2011-04-29		2016-04-29		4.65	%		—		—		100		100
		Loans in KRW		2011-05-17		2016-05-17		4.47	%		—		—		50		50
Shinhan PE		Loans in KRW		2010-08-13		2011-08-12		3.64	%		5		—		—		5
Total		—		—		—		—			1,455		650		650		1,455

Exhibit 99-1

Independent Accountant’s Audit Report (Non-consolidated Financial Statements) of Shinhan Financial Group as of June 30, 2011

Exhibit 99-2

Independent Accountant’s Audit Report (Consolidated Financial Statements) of Shinhan Financial Group as of June 30, 2011

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/ Jung Kee Min
Name:		Jung Kee Min
Title:		Chief Financial Officer

Date: August 29, 2011