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 November 2008

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 2008 3Q Business Report

On November 14, 2008, Shinhan Financial Group (“SFG”) filed its 2008 3Q 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
2.		Business Results
3.		Independent Auditor
4.		Directors, Executive Officers and Employees
5.		Largest 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 September 30, 2008

1. Introduction of the Group

Company History in 2008

	§		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

Principal Subsidiaries under Korean Law as of Oct. 31, 2008

Direct Subsidiaries


Subsidiaries	Ownership by SFG
Shinhan Bank		100.0	%
Shinhan Card ¹⁾		100.0	%
SHC Management ¹⁾		100.0	%
Good Morning Shinhan Securities		100.0	%
Shinhan Life Insurance		100.0	%
Shinhan Capital		100.0	%
Shinhan BNP Paribas ITMC		50.0	%
Jeju Bank ²⁾		62.4	%
SH&C Life Insurance		50.0	%
Shinhan Macquarie Financial Advisory		51.0	%
Shinhan Credit Information		100.0	%
Shinhan Private Equity		100.0	%


1)		On September 21, 2007, LG Card became a wholly owned subsidiary of Shinhan Financial Group through a small scale share swap. LG Card shares were de-listed from the Korea Exchange on October 10, 2007. Further, through a process of business transfer and assumption, Shinhan Card’s business was fully assumed by LG Card. Subsequently, LG Card changed its name to “Shinhan Card” on October 1, 2007. Former Shinhan Card has changed its name to “SHC Management” and is in the process of liquidation.

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

Indirect subsidiaries held through direct subsidiaries

(As of Oct. 31, 2008)


		Ownership by the
Direct Subsidiaries	Indirect Subsidiaries	Parent
Shinhan Bank	Shinhan Data System		100.00	%
	Shinhan Finance Ltd.(Hong Kong)¹⁾		100.00	%
	SH Asset Management		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		100.00	%
	JSC Shinhan Bank Kazakhstan		100.00	%
	Shinhan Bank China Limited		100.00	%
	Shinhan AITAS		55.92	%
	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

Number of issued and outstanding shares of the Group as of September 30, 2008


Types of Shares	Number of Shares
Common Shares		396,199,587
Redeemable Preferred Shares		47,690,251
Redeemable Convertible Preferred Shares		14,721,000

Total		458,610,838

Employee Stock Ownership Plan (ESOP)

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

Employee

Contribution
Amount

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 Securites

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

—

Sub-total

3,295,700,000

—

Total

37,052,517,932

—

(2) Changes in ESOA Share Ownership


		(As of September 30, 2008, Unit: shares)
		Beginning Balance						Ending Balance
	Share type	(Jan.1, 2008)		Increase		Decrease		(Sept. 30, 2008)
Association Accounts	Common Shares		1,236,075		—		1,236,075		—
Employee Accounts	Common Shares		4,336,056		1,984,191		333,222		5,987,025
Total	—		5,572,131		1,984,191		1,569,297		5,987,025

ESOP Ownership per company


(As of September 30, 2008, Unit: shares)
Company	Number of Shares
Shinhan Financial Group		67,992
Shinhan Bank		5,573,394
Good Morning Shinhan Securities		107,608
Shinhan Capital		63,917
Shinhan Card		88,607
Shinhan Life Insurance		79,753
SH&C Life Insurance		1,351
Shinhan Credit Information		1,392
Shinhan Data System		3,011
Total		5,987,025

2. Business Results

Operation Results


	(KRW million)
	2008 3Q		2007		2006
	(Jan.1~Sept. 30)		(Jan.1~Dec.31)		(Jan.1~Dec.31)
Operating Revenue		2,064,835		2,749,536		2,003,752
Gain using the equity method of accounting		1,866,683		2,632,111		1,917,268
Interest income		96,524		117,333		79,151
Royalty		101,628		—		—
Gain on Foreign Currency Transaction		—		92		5,838
Other income		—		—		1,495
Operating Expense		329,584		375,344		182,889
Loss using the equity method of accounting		4,898		—		—
Interest Expense		283,170		326,928		129,644
Loss on Foreign Currency Transaction		—		93		5,838
Commission Expense		107		112		269
SG&A Expense		41,409		48,211		47,138
Operating Income		1,735,251		2,374,192		1,820,863

Source and Use of Funds

Source of Funds


	(KRW million)
	2008 3Q				2007				2006
	(Jan.1~Sept.30)				(Jan.1~Dec.31)				(Jan.1~Dec.31)
	Average		Ratio		Average		Ratio		Average		Ratio
	Balance ¹⁾		(%)		Balance ¹⁾		(%)		Balance ¹⁾		(%)
Stockholders’ Equity		17,995,389		70.85		15,896,140		71.4		10,376,235		76.7
Capital Stock		2,462,473		9.70		2,374,866		10.67		2,170,758		16.05
Capital Surplus		8,879,065		34.96		7,482,652		33.61		4,360,100		32.23
Capital Adjustment		-208,380		-0.82		19,669		0.09		25,520		0.19
Comprehensive Income		1,330,989		5.24		1,578,309		7.09		840,704		6.21
Retained Earnings		5,531,242		21.78		4,440,644		19.95		2,979,153		22.02
Liabilities		7,403,545		29.15		6,368,277		28.60		3,152,497		23.30
Borrowings		7,212,865		28.4		6,242,453		28.04		2,769,824		20.47
Other liabilities		190,680		0.75		125,824		0.57		382,673		2.83
Total		25,398,934		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 3Q				2007				2006
	(Jan.1~Sept.30)				(Jan.1~Dec.31)				(Jan.1~Dec.31)
	Average		Ratio		Average		Ratio		Average		Ratio
	Balance ¹⁾		(%)		Balance ¹⁾		(%)		Balance ¹⁾		(%)
Investments on equity stock		22,910,864		90.2		20,342,185		91.37		11,646,253		86.08
Shinhan Bank		11,561,301		45.52		10,820,953		48.60		8,997,565		66.50
Shinhan Card		7,892,528		31.07		5,963,810		26.79		—		—
SHC Management		429,738		1.69		955,862		4.29		639,038		4.72
Good Morning Shinhan Securities		1,727,075		6.80		1,432,555		6.43		943,203		6.97
Shinhan Life Insurance		820,290		3.23		807,664		3.63		768,599		5.68
Shinhan Capital		327,577		1.29		220,347		0.99		170,264		1.26
Jeju Bank		80,799		0.32		73,916		0.33		66,809		0.49
Shinhan Credit Information		12,816		0.05		11,249		0.05		9,179		0.07
Shinhan Private Equity		10,343		0.04		9,864		0.04		8,987		0.07
Shinhan BNP Paribas ITMC		30,283		0.12		26,597		0.12		24,152		0.18
SH&C Life Insurance		16,625		0.07		17,821		0.08		17,322		0.13
Shinhan Macquarie FA		1,489		0.01		1,547		0.01		1,135		0.01
Loans		1,751,200		6.89		1,201,143		5.39		1,299,633		9.61
Fixed Assets		1,237		0.00		662		0.00		959		0.01
Cash Deposit in bank		680,078		2.68		557,627		2.50		422,201		3.12
Other Assets		55,555		0.22		162,800		0.73		159,686		1.18
Total		25,398,934		100		22,264,417		100		13,528,732		100


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

Other Financial Information

Financial information for 2008 3Q contained in this section are provisional figures.

Group BIS Ratio

(KRW million)


	2008 3Q			2007
Aggregate Amount of Equity Capital (A)		19,449,457			15,945,940
Risk-Weighted Assets (B)		185,785,584			161,849,385
BIS Ratio (A/B) ¹⁾		10.47	%		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 3Q			2007			2006
Won Assets due within 3 months (A)		311,519			220,009			605,415
Won Liabilities due within 3 months (B)		279,688			209,888			248,661
Won Liquidity Ratio (A/B) ¹⁾		111.38	%		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 3Q			2007			2006
Liabilities (A)		7,226,602			7,349,727			3,642,105
Equity (B)		17,725,630			17,977,801			11,361,526
Liabilities to Equity Ratio (A/B)		40.77	%		40.88	%		32.06	%

Capital Adequacy Ratio and Other Ratios of Certain Subsidiaries

(1) BIS Capital Adequacy Ratio (%) ¹⁾


	2008 3Q		2007		2006
Shinhan Bank ²⁾		11.90		12.09		12.01
Jeju Bank		10.46		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 3Q.

(2) Adjusted Equity Capital Ratio (%)


	2008 3Q		2007		2006
Shinhan Card		23.39		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 (%)


	Sept.30 2008		Mar.31 2008		Mar.31 2007
Good Morning Shinhan Securities		524.50		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 (%)


	Sept.30 2008		Mar.31 2008		Mar.31 2007
Shinhan Life Insurance		204.64		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)


	Sept.30, 2008				Dec.31, 2007				Dec.31, 2006
	Balance of NPL		NPL to total Loans (%)		Balance of NPL		NPL to total Loans (%)		Balance of NPL		NPL to total Loans (%)
Shinhan Bank		1,112,196		0.73		848,846		0.63		729,655		0.62
Jeju Bank		11,074		0.51		11,952		0.60		13,120		0.74
Shinhan Card ²⁾		395,513		3.04		448,866		3.71		493,236		6.05

Sept. 30, 2008

Mar. 31, 2008

Mar. 31, 2007

Balance of
NPL

NPL to total
Loans (%)

Balance of
NPL

NPL to total
Loans (%)

Balance of
NPL

NPL to total
Loans (%)

GMSH Securities ²⁾

59,841

5.11

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~
			Sept. 30, 2008		Dec. 31, 2007		Dec. 31, 2006
Shinhan Bank	Loan Loss	Domestic		2,579,196		2,317,075		1,911,843
	Allowance	Overseas		80,204		76,175		59,758
		Total		2,659,400		2,393,250		1,971,601
	Write-offs			256,308		186,316		160,636
Jeju Bank	Loan Loss	Domestic		28,930		31,849		26,313
	Allowance	Overseas		—		—		—
		Total		28,930		31,849		26,313
	Write-offs			6,955		7,188		8,325
Shinhan Card ¹⁾	Loan Loss	Domestic		829,153		947,737		1,031,823
	Allowance	Overseas		—		—		—
		Total		829,153		947,737		1,031,823
	Write-offs			437,129		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~
			Sept 30, 2008		Mar. 31, 2008		Mar. 31, 2007
GMSH	Loan Loss	Domestic		56,326		33,005		30,776
Securities	Allowance	Overseas		—		—		—
		Total		56,326		33,005		30,776
	Write-offs			481		983		1,117

3. Independent Auditor

Audit Opinion for the last 3 years

2008 3Q

FY 2007

FY 2006

Audit Opinion

—

Unqualified


*		Financial Statements for 3Q 2008 was reviewed by the independent auditor, but not audited.

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 (KRW mil.)		Details	Working hours
2008 3Q	KPMG Samjong Accounting Corp.	355 (annual)		Review/Audit of Financial Statements	3,170 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

In Ho Lee	Nov. 2, 1943	President & CEO	2 years starting from March 20, 2007

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 19, 2008.

Our non-executive directors are as follows:



		Outside
Name	Date of Birth	Director	Sub-Committees	Service Term
Sang Hoon Shin	Jul. 1, 1948	X	—	3 years starting from March 19, 2008

Pyung Joo Kim	Feb. 06, 1939	O	Risk Management Committee Chair Board Steering Committee member Compensation Committee member	1 year starting from March 19, 2008

Si Jong Kim	Aug. 16, 1937	O	—	1 year starting from March 19, 2008

Young Woo Kim	May 1, 1952	O	Audit Committee member	1 year starting from March 19, 2008

Shee Yul Ryoo	Sept. 5, 1938	O	Board Steering Committee member Compensation Committee Chair	1 year starting from March 19, 2008

Byung Hun Park	Sept. 10, 1928	O	Board Steering Committee member	1 year starting from March 19, 2008

Yong Woong Yang	Aug. 4, 1948	O	—	1 year starting from March 19, 2008

Sung Bin Chun	Jan. 21, 1953	O	Audit Committee Chair Compensation Committee member	1 year starting from March 19, 2008

Haeng Nam Chung	Mar. 15, 1941	O	—	1 year starting from March 19, 2008

Young Hoon Choi	Nov. 8, 1928	O	—	1 year starting from March 19, 2008

Philippe Reynieix	Jun. 24, 1949	O	Risk Management Committee member	1 year starting from March 19, 2008

Bong Youn Cho	Mar. 9, 1949	O	Compensation Committee member Risk Management Committee member Audit Committee member	1 year starting from March 19, 2008

Young Sup Huh	Oct. 9, 1941	O	Board Steering Committee member Compensation Committee member Audit Committee member	1 year starting from March 19, 2008

For personal profiles of the outside directors, please refer to our Form 6-K filed on February 15, 2008.

Chair of the Board Steering Committee and 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
Baek Soon Lee	Oct. 8, 1952	Deputy President	— Synergy Management Team — Information & Technology Planning Team — Risk Management Team — Audit & Compliance Team

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

Stock Options (as of November 6 , 2008)


	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		822,463		11,600		186,353		11,800
Granted in 2004		1,258,923		906,100		15,200		337,623		21,595
Granted in 2005		2,620,331		383,573		251,300		1,985,458		28,006
Granted in 2006		3,296,200		—		478,800		2,817,400		38,829
Granted in 2007		1,301,050		—		131,000		1,170,050		54,560
Granted in 2008		808,700		—		7,500		801,200		49,053
		11,170,196		2,976,712		895,400		7,298,084		—


Note)		The weighted-average exercise price of outstanding exercisable options as of November 6, 2008 is KRW 38,042.

Employees

(As of Sept. 30, 2008)

Total Salaries and wages

paid for the first 9 months

Average Payment

of 2008

per person

Number of Employees

Average length of Service

(KRW million)

Male

2 yrs 1 mths

6,200

Female

4 yrs 5 mths

456

Total

3 yrs 3 mths

6,656

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. Largest Shareholder and Market Price Information of our Common Shares and ADRs

Largest Shareholder of Shinhan Financial Group as of Sept. 30, 2008


Name	No. of Common Shares owned		Ownership%
BNP Paribas Group		33,682,104		8.50

Common Share Traded on the Korea Exchange


		(KRW, number of shares)
		Apr. 2008		May 2008		Jun. 2008		Jul. 2008		Aug 2008		Sept. 2008
Price per share	High		57,900		58,900		51,300		47,400		50,300		50,100
Price per share	Low		53,100		49,300		41,500		41,500		46,050		41,900
Trading Volume			35,766,669		41,348,852		84,932,657		43,908,185		28,535,556		56,905,055

American Depositary Shares traded on the New York Stock Exchange


		(USD, number of shares)
		Apr. 2008		May 2008		Jun. 2008		Jul. 2008		Aug 2008		Sept. 2008
Price per share	High		116.47		118.35		99.04		96.03		98.07		91.40
Price per share	Low		108.60		94.29		86.79		83.26		88.26		68.47
Trading Volume			1,020,729		1,103,566		1,242,979		1,427,883		1,177,288		2,204,707


*		1 ADR = 2 Common Shares

6. Related Party Transactions

Loans to Subsidiaries


		Origination	Maturity	Funding	Lending			Beginning
Subsidiary	Loan Type	Date	Date	Rate	Rate			Balance		Increase		Decrease		Ending Balance
Shinhan Card	Loan in KRW	2003-04-23	2009-04-23	5.47%		6.28	%		1,000		—		—		1,000
Shinhan Capital	Loan in KRW	2003-06-24	2008-06-24	5.69%		5.95	%		300		—		300		—
Shinhan Capital	Loan in KRW	2003-07-24	2008-07-24	5.87%		6.13	%		200		—		200		—
Shinhan Capital	Loan in KRW	2004-03-24	2009-03-24	5.11%		5.93	%		200		—		—		200
Shinhan Capital	Loan in KRW	2004-06-25	2009-06-25	4.93%		5.22	%		500		—		—		500
Shinhan Capital	Loan in KRW	2005-01-31	2008-01-31	4.21%		4.58	%		300		—		300		—
GMSH Securities	Loan in KRW	2005-01-31	2010-07-31	4.59%		5.25	%		700		—		—		700
Shinhan Card	Loan in KRW	2005-03-18	2008-03-18	4.23%		4.54	%		500		—		500		—
Shinhan Capital	Loan in KRW	2005-05-09	2008-05-09	3.99%		4.33	%		500		—		500		—
Shinhan Capital	Loan in KRW	2005-12-16	2008-12-16	5.34%		5.67	%		400		—		—		400
Shinhan Card	Loan in KRW	2006-01-24	2009-01-24	5.24%		5.41	%		500		—		—		500
Shinhan Capital	Loan in KRW	2006-01-24	2009-01-24	5.24%		5.41	%		500		—		—		500
Shinhan Card	Loan in KRW	2006-02-27	2009-02-27	5.07%		5.23	%		1,000		—		700		300
Shinhan Capital	Loan in KRW	2006-02-27	2009-02-27	5.07%		5.23	%		—		700		—		700
Shinhan Capital	Loan in KRW	2006-04-24	2009-04-24	5.09%		5.22	%		1,000		—		—		1,000
GMSH Securities	Loan in KRW	2006-07-31	2012-01-31	5.16%		5.64	%		1,000		—		—		1,000
Shinhan Capital	Loan in KRW	2006-09-26	2011-09-26	4.91%		4.99	%		500		—		—		500
Shinhan Capital	Loan in KRW	2007-03-23	2012-03-23	5.28%		5.48	%		500		—		—		500
Shinhan Capital	Loan in KRW	2007-04-13	2010-04-13	5.24%		5.38	%		500		—		—		500
Shinhan Capital	Loan in KRW	2007-06-08	2012-06-08	5.54%		5.95	%		500		—		—		500
Shinhan Capital	Loan in KRW	2007-09-27	2010-09-27	5.91%		6.05	%		1,000		—		—		1,000
Shinhan Capital	Loan in KRW	2007-11-27	2010-11-27	6.24%		6.37	%		500		—		—		500
Shinhan Card	Loan in KRW	2007-11-27	2012-11-27	6.33%		6.41	%		1,000		—		—		1,000
Shinhan Capital	Loan in KRW	2007-12-18	2010-12-18	6.69%		6.83	%		500		—		—		500
Shinhan Card	Loan in KRW	2007-12-18	2012-12-18	6.78%		6.86	%		500		—		—		500
Shinhan PE	Loan in KRW	2007-06-28	2008-06-27	5.31%		5.51	%		50		—		50		—
Shinhan Card	Loan in KRW	2008-01-23	2011-01-23	6.46%		6.60	%		—		1,000		—		1,000
Shinhan Capital	Loan in KRW	2008-01-23	2011-01-23	6.46%		6.60	%		—		500		—		500
Shinhan Capital	Loan in KRW	2008-01-23	2013-01-23	6.51%		6.60	%		—		500		—		500
Shinhan Card	Loan in KRW	2008-02-21	2011-02-21	5.51%		5.66	%		—		1,500		—		1,500
Shinhan Card	Loan in KRW	2008-03-12	2011-03-12	5.71%		5.84	%		—		2,000		—		2,000
Shinhan Capital	Loan in KRW	2008-03-12	2011-03-12	5.71%		5.84	%		—		500		—		500
Shinhan Card	Loan in KRW	2008-06-27	2011-06-27	6.41%		6.53	%		—		2,000		—		2,000
Shinhan Card	Loan in KRW	2008-07-31	2011-07-31	6.76%		6.90	%		—		1,000		—		1,000
Shinhan Capital	Loan in KRW	2008-07-31	2011-07-31	6.76%		6.90	%		—		500		—		500
Shinhan PE	Loan in KRW	2008-06-27	2009-06-26	5.98%		6.18	%		—		50		—		50
Shinhan PE	Loan in KRW	2008-08-13	2009-08-13	6.65%		6.85	%		—		50		—		50
Total									14,150		10,300		2,550		21,900

Exhibit 99-1 Independent Accountant’s Review Report (Non-consolidated Financial Statements) of Shinhan Financial Group as of September 30, 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 : November 14, 2008