SFG Consolidated FY2022.4Q Final

SHINHAN FINANCIAL GROUP CO., LTD.
AND SUBSIDIARIES
Consolidated Financial Statements

December 31, 2022 and 2021
(With Independent Auditor’s Report Thereon)

Contents
Page
Independent Auditor’s Report 1
Consolidated Statements of Financial Position 5
Consolidated Statements of Comprehensive Income 7
Consolidated Statements of Changes in Equity 9
Consolidated Statements of Cash Flows 11
Notes to the Consolidated Financial Statements 14

Independent Auditor’s Report
(English Translation of a Report Originally Issued in Korean)
To the Board of Directors and Shareholders of Shinhan Financial Group Co., Ltd.
Opinion
We have audited the accompanying consolidated financial statements of Shinhan Financial Group Co., Ltd. and its
subsidiaries (collectively referred to as the “Group”), which comprise the consolidated statements of financial
position as at December 31, 2022 and 2021, and the consolidated statements of comprehensive income, consolidated
statements of changes in equity and consolidated statements of cash flows for the years then ended, and notes to the
consolidated financial statements, including a summary of significant accounting policies.
In our opinion, the accompanying consolidated financial statements present fairly, in all material respects, the
consolidated financial position of the Group as at December 31, 2022 and 2021, and its consolidated financial
performance and its consolidated cash flows for the years then ended in accordance with International Financial
Reporting Standards as adopted by the Republic of Korea (K-IFRS).
Basis for Opinion

We conducted our audits in accordance with Korean Standards on Auditing. Our responsibilities under those
standards are further described in the Auditor’s Responsibilities for the Audit of the Consolidated Financial
Statements section of our report. We are independent of the Group in accordance with the ethical requirements of
the Republic of Korea that are relevant to our audit of the consolidated financial statements and we have fulfilled
our other ethical responsibilities in accordance with the ethical requirements. We believe that the audit evidence we
have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the
consolidated financial statements of the current period. These matters were addressed in the context of our audit of
the consolidated financial statements as a whole, and in forming our opinion thereon, and we do not provide a
separate opinion on these matters.
1. Expected Credit Losses on Loans Measured at Amortized Cost

Why it is determined to be a key audit matter:
The impairment guidance under K-IFRS 1109 Financial Instruments requires determination of significant increases
in credit risk and measurement of expected credit losses using forward-looking information and others. Accordingly,
the Group developed a new measurement model utilizing various types of information, which requires a higher level
of management’s interpretation and judgment.
The Group measures expected credit losses on loans measured at amortized cost based on both individual and
collective assessments. Individual assessment of expected credit losses is performed based on estimates of future
forecast cash flow with a relatively high degree of management’s estimates and judgments, and collective
assessment of expected credit losses is involved with a variety and complex variable inputs and assumptions that
requires management’s estimates and judgments. Due to these facts, expected credit losses of loans measured at
amortized costs are determined as a key audit matter.
As described in Note 12, loans measured at amortized cost subject to individual or collective assessments amount to
W 415,942,374 million, with allowances for credit losses of W 3,650,863 million as of December 31, 2022.
How our audit addressed the key audit matter:

(1) Assessment of expected credit losses on an individual basis
We obtained an understanding and evaluated the processes and controls relating to the assessment of expected credit
losses on an individual basis. In particular, we focused our effort on the assumptions used in estimating future cash
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flows. We evaluated whether management’s estimation was reasonable and we assessed the key assumptions in the
cash flow projection including growth rate of entities subject to individual assessment and collateral valuation. As
part of these procedures, we assessed whether sales growth rate, operating income ratio, and assumptions on
investment activities were consistent with historical operating performance and current market conditions.
Furthermore, we assessed the appropriateness of collateral valuation by conducting our own research on recent
property prices and engaged independent appraisal specialists in assessing reasonableness of appraisal reports,
models and methodologies used by management.
(2) Assessment of expected credit losses on a collective basis
We obtained an understanding and evaluated the processes and controls relating to management’s calculation of
expected credit losses on a collective basis in accordance with impairment requirements under K-IFRS
1109 Financial Instruments. As explained in Note 3(8), management assesses credit ratings to recognize lifetime
expected credit losses on loans with significant increase in credit risk and impaired loans. Other than these cases,
management recognizes 12-months of expected credit losses. To calculate all expected credit losses, management
has applied forward-looking information, possible multiple scenarios, probability of default, loss given default and
other assumptions estimated through its internal procedures and controls implemented for various assumptions.
We assessed the design and operating effectiveness of controls relating to credit ratings that reasonably reflect both
qualitative and quantitative information. Our testing over the accuracy and reliability of the information included
agreeing qualitative and quantitative information with relevant evidence.
We reviewed the appropriateness of management policies and procedures to determine significant increases in credit
risk, and tested reasonableness of expected credit loss model applied by each of the three stages(Stage 1, 2 and 3)
depending on how significantly credit risk was increased.
Our audit effort involved risk specialists in verifying the reasonability and possibility of forward-looking
information and multiple scenarios produced by management. Also, our audit involved risk specialists to statistically
analyze the correlation between forward-looking information and probability of default or loss given default. We
assessed the appropriateness of methodologies for adjusting the probability of default to reflect forward-looking
information on estimation of expected credit losses. We further tested the reasonableness and mathematical accuracy
of the information through recalculation and inspection of supporting data.
We reviewed the methodologies used by management to verify that probability of default and loss given default
were calibrated using sufficient and reasonable historical data. We determined that the default and loss data used
were appropriately gathered and applied in accordance with internal control procedures. In addition, we assessed
reasonableness and accuracy of probability of default and loss given default through procedures including
recalculation, and evaluated management’s default and loss data by agreeing them with relevant evidence.
2. Valuation of Over-The-Counter Derivatives Classified as Level 3 Subject to Internal Valuation Models
Why it is determined to be a key audit matter :
Fair value of large portion of over-the-counter derivatives in the consolidated financial statements is calculated
through the use of an internally developed valuation system. Judgment is required in estimating the fair value of
these derivatives held by Shinhan Securities Co., Ltd. in determining appropriate models, assumptions and inputs.
Given the complexity of estimation and the extent of judgment involved in valuing these over-the-
counter derivatives, we considered this to be a key audit matter. Over-the-counter derivatives of Shinhan Securities
Co., Ltd. subject to fair value measurement are financial liabilities designated as fair value through profit or loss
related to derivative linked securities and financial assets at fair value through profit or loss(See Note 4(5)) that
amount to W 9,001,730 million as of December 31, 2022.
How our audit addressed the key audit matter :
We obtained an understanding and evaluated processes and controls in relation to fair value measurement. Our focus
was particularly on the accuracy of underlying transaction data used and mathematical calculation in accordance
with management’s internal valuation methodologies.
We assessed design and tested operating effectiveness of controls over accuracy and completeness of key inputs
such as underlying transaction data (notional amount, interest rate, maturity etc.) used in management’s
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determination of estimated fair value. We tested transaction data used in the valuation by examining supporting
evidence including contracts and trade confirmations.
We also tested the controls over periodic verification of management’s internal valuation system, verification of input
data, and recalculation of output data to ensure the accuracy of over-the-counter derivative valuation. We involved
our derivative valuation specialist to independently estimate fair values utilizing independent valuation models and
variables to see if management’s valuation is outside our ranges.
Other Matter
Auditing standards and their application in practice vary among countries. The procedures and practices used in the
Republic of Korea to audit such consolidated financial statements may differ from those generally accepted and
applied in other countries.
Responsibilities of Management and Those Charged with Governance for the Consolidated Financial
Statements
Management is responsible for the preparation and fair presentation of the consolidated financial statements in
accordance with K-IFRS, and for such internal control as management determines is necessary to enable the
preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or
error.
In preparing the consolidated financial statements, management is responsible for assessing the Group’s ability to
continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern
basis of accounting unless management either intends to liquidate the Group or to cease operations.
Those charged with governance are responsible for overseeing the Group’s financial reporting process.
Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements

Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are
free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our
opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in
accordance with Korean Standards on Auditing will always detect a material misstatement when it exists.
Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they
could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated
financial statements.
As part of an audit in accordance with Korean Standards on Auditing, we exercise professional judgment and
maintain professional skepticism throughout the audit. We also:
• Identify and assess the risks of material misstatement of the consolidated financial statements, whether
due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit
evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a
material misstatement resulting from fraud is higher than for one resulting from error, as fraud may
involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that
are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness
of the entity’s internal control.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates
and related disclosures made by management.
• Conclude on the appropriateness of management’s use of the going concern basis of accounting and,
based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions
that may cast significant doubt on the Group’s ability to continue as a going concern. If we conclude that
a material uncertainty exists, we are required to draw attention in our auditor’s report to the related
disclosures in the consolidated financial statements or, if such disclosures are inadequate, to modify our
opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report.
However, future events or conditions may cause the Group to cease to continue as a going concern.
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• Evaluate the overall presentation, structure and content of the consolidated financial statements, including
the disclosures, and whether the consolidated financial statements represent the underlying transactions
and events in a manner that achieves fair presentation.
• Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business
activities within the Group to express an opinion on the consolidated financial statements. We are
responsible for the direction, supervision and performance of the Group audit. We remain solely
responsible for our audit opinion.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing
of the audit and significant audit findings, including any significant deficiencies in internal control that we identify
during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical
requirements regarding independence, and to communicate with them all relationships and other matters that may
reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters that were of most
significance in the audit of the consolidated financial statements of the current period and are therefore the key audit
matters. We describe these matters in our auditor’s report unless law or regulation precludes public disclosure about
the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our
report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest
benefits of such communication.
The engagement partner on the audit resulting in this independent auditor’s report is Sungeun Jin, Certified Public
Accountant.
/s/ Samil PricewaterhouseCoopers

Seoul, Korea
March 6, 2023
This report is effective as of March 6, 2023, the audit report date. Certain subsequent events or circumstances,
which may occur between the audit report date and the time of reading this report, could have a material impact
on the accompanying consolidated financial statements and notes thereto. Accordingly, the readers of the audit
report should understand that there is a possibility that the above audit report may have to be revised to reflect
the impact of such subsequent events or circumstances, if any.
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SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES
Consolidated Statements of Financial Position
As of December 31, 2022 and 2021
(In millions of won) Note 2022 2021
Assets
Cash and due from banks at amortized cost 4, 8, 12, 19 W 29,532,235 28,453,404
Financial assets at fair value through profit or
4, 9, 19
loss 56,643,670 62,403,759
Derivative assets 4, 10 6,461,796 3,799,189
Securities at fair value through other
comprehensive income 4, 11, 19 63,661,719 64,838,323
Securities at amortized cost 4, 11, 19 57,971,493 49,930,076
Loans at amortized cost 4, 12 412,291,511 389,137,156
Property and equipment, net 13, 18, 19 4,011,097 4,046,164
Intangible assets 14 5,807,836 5,644,782
Investments in associates 15 2,904,474 2,913,745
Current tax receivable 26,307 15,159
Deferred tax assets 41 1,052,333 134,854
Investment property 16 363,108 675,391
Net defined benefit assets 25 619,653 142,020
Other assets 4, 12, 17, 19 34,507,838 35,973,754
Assets held for sale 29,211 44,409
Total assets W 675,884,281 648,152,185
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Consolidated Statements of Financial Position (Continued)
As of December 31, 2022 and 2021

Liabilities
Deposits 4, 20 W 383,010,745 364,896,675
Financial liabilities at fair value through profit
4, 21
or loss 1,146,110 1,369,225
Financial liabilities designated at fair value
4, 22
through profit or loss 8,367,368 8,023,870
Derivative liabilities 4, 10 7,704,705 3,586,564
Borrowings 4, 23 49,279,175 43,167,065
Debt securities issued 4, 24 77,288,783 80,149,363
Net defined benefit liabilities 25 14,664 51,204
Provisions 26 1,266,314 1,166,856
Current tax payable 702,143 702,660
Deferred tax liabilities 41 169,956 175,947
Liabilities under insurance contracts 27 54,315,124 54,333,498
Other liabilities 4, 28 41,488,772 40,990,836
Total liabilities 624,753,859 598,613,763
Equity 29
Capital stock 2,969,641 2,969,641
Hybrid bonds 4,196,968 3,334,531
Capital surplus 12,095,043 12,095,043
Capital adjustments (582,859) (664,429)
Accumulated other comprehensive loss (3,582,720) (984,936)
Retained earnings 33,342,633 30,541,300
Total equity attributable to equity holders of
Shinhan Financial Group Co., Ltd. 48,438,706 47,291,150
Non-controlling interests 2,691,716 2,247,272
Total equity 51,130,422 49,538,422
Total liabilities and equity W 675,884,281 648,152,185
See accompanying notes to the consolidated financial statements.
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Consolidated Statements of Comprehensive Income
For the years ended December 31, 2022 and 2021
Interest income
Financial assets at fair value through other
comprehensive income and at amortized cost W 19,167,750 14,027,418
Financial assets at fair value through profit or
loss 940,916 696,812
20,108,666 14,724,230
Interest expense (7,644,985) (3,954,905)
Net interest income 31 12,463,681 10,769,325
Fees and commission income 4,110,576 4,139,885

Fees and commission expense (1,585,010) (1,464,888)
Net fees and commission income 32 2,525,566 2,674,997
Insurance income 6,890,905 6,484,523

Insurance expenses (7,718,138) (7,259,909)
Net insurance expenses 27 (827,233) (775,386)
Dividend income 33 142,529 124,531

Net gain (loss) on financial instruments at fair
value through profit or loss 34 (304,113) 1,103,631
Net gain on financial instruments at fair value
through profit or loss (overlay approach) 9 313,211 43,003
Net gain (loss) on financial instruments designated
at fair value through profit or loss 35 576,942 (88,301)
Net gain on foreign currency transaction 180,304 222,819
Net gain (loss) on disposal of securities at fair
value through other comprehensive income 11 (127,393) 85,596
Net loss on disposal of securities at amortized cost 11 (101) (319)
Provision for allowance for credit loss 36 (1,292,296) (974,685)
General and administrative expenses 37 (6,013,514) (5,743,088)
Other operating expenses, net 39 (1,749,504) (1,490,027)
Operating income 5,888,079 5,952,096
Equity method income 15 121,697 158,600

Other non-operating income (expense), net 40 339,475 (527,032)
Profit before income taxes 6,349,251 5,583,664
Income tax expense 41 1,617,088 1,471,036

Profit for the year W 4,732,163 4,112,628
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Consolidated Statements of Comprehensive Income (Continued)
(In millions of won, except earnings per share data) Note 2022 2021
Other comprehensive income for the year, net of

income tax 29
Items that are or may be reclassified to profit or loss:
Loss on securities at fair value through other
comprehensive income W (2,447,712) (879,671)
Loss on financial instruments at fair value through
profit or loss (overlay approach) 9 (220,097) (20,098)
Equity in other comprehensive income (loss) of
associates (15,758) 2,748
Foreign currency translation adjustments for foreign
operations 14,732 252,308
Net change in unrealized fair value of cash flow
hedges (70,494) 21,700
Other comprehensive loss of separate account (113,207) (41,273)
(2,852,536) (664,286)
Items that will not be reclassified to profit or loss:
Remeasurements of the net defined benefit
liabilities(assets) 251,991 43,277
Equity in other comprehensive loss of associates (5) (2)
Valuation gain on securities at fair value through
other comprehensive income 5,133 35,441
Gain (loss) on disposal of securities at fair value
through other comprehensive income 2,134 (29,421)
Changes in own credit risk on financial liabilities
designated at fair value through profit of loss (4,749) (2,798)
254,504 46,497
Total other comprehensive loss, net of income tax (2,598,032) (617,789)
Total comprehensive income for the year W 2,134,131 3,494,839
Profit attributable to:

Equity holders of Shinhan Financial Group Co., Ltd. 29, 42 W 4,642,292 4,019,254
Non-controlling interests 89,871 93,374
W 4,732,163 4,112,628
Total comprehensive income attributable to:
Equity holders of Shinhan Financial Group Co., Ltd. W 2,045,190 3,402,925
Non-controlling interests 88,941 91,914
W 2,134,131 3,494,839
Earnings per share: 29, 42

Basic and diluted earnings per share in won W 8,454 7,308
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Consolidated Statements of Changes in Equity
For the years ended December 31, 2021
(In millions of won) Equity attributable to equity holders of Shinhan Financial Group Co., Ltd.
Accumulated
other compre- Non-
Capital Hybrid Capital Capital hensive income Retained controlling
stock bonds surplus adjustments (loss) earnings Sub-total interests Total
Balance at January 1, 2021 W 2,969,641 2,179,934 12,234,939 (687,935) (404,181) 27,777,169 44,069,567 2,287,291 46,356,858
Total comprehensive income for the year
Profit for the year - - - - - 4,019,254 4,019,254 93,374 4,112,628
Other comprehensive income (loss), net of income tax:
Loss on valuation and disposal of securities at fair
- - - - (871,104) - (871,104) (2,547) (873,651)
value through other comprehensive income
- - - - (20,098) - (20,098) - (20,098)
profit or loss (overlay approach)
Equity in other comprehensive income of associates - - - - 2,746 - 2,746 - 2,746
- - - - 251,842 - 251,842 466 252,308
operations
Net change in unrealized fair value of cash flow hedges - - - - 21,700 - 21,700 - 21,700
Other comprehensive loss of separate account - - - - (41,273) - (41,273) - (41,273)
Remeasurements of the net defined benefit liabilities
- - - - 42,656 - 42,656 621 43,277
(assets)
- - - - (2,798) - (2,798) - (2,798)
designated at fair value through profit or loss
Total other comprehensive loss - - - - (616,329) - (616,329) (1,460) (617,789)
Total comprehensive income (loss) - - - - (616,329) 4,019,254 3,402,925 91,914 3,494,839
Other changes in equity

Dividends - - - - - (803,838) (803,838) - (803,838)
Interim dividends - - - - - (299,082) (299,082) - (299,082)
Dividends to hybrid bonds - - - - - (116,388) (116,388) - (116,388)
Issuance of hybrid bonds - 1,154,597 - - - - 1,154,597 - 1,154,597
Acquisition of treasury stock (Note 29) - - - (79) - - (79) - (79)
Disposal of treasury stock (Note 29) - - - 23,589 - - 23,589 - 23,589
Change in other capital adjustments - - (105) (4) - (241) (350) - (350)
Change in other non-controlling interests - - (139,791) - - - (139,791) (131,933) (271,724)
- 1,154,597 (139,896) 23,506 - (1,219,549) (181,342) (131,933) (313,275)
Reclassification of OCI retained earnings - - - - 35,574 (35,574) - - -
Balance at December 31, 2021 W 2,969,641 3,334,531 12,095,043 (664,429) (984,936) 30,541,300 47,291,150 2,247,272 49,538,422
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Consolidated Statements of Changes in Equity (Continued)
For the years ended December 31, 2022
(In millions of won) Equity attributable to equity holders of Shinhan Financial Group Co., Ltd.
Accumulated
other compre- Non-
Capital Hybrid Capital Capital hensive income Retained controlling
stock bonds surplus adjustments (loss) earnings Sub-total interests Total
Balance at January 1, 2022 W 2,969,641 3,334,531 12,095,043 (664,429) (984,936) 30,541,300 47,291,150 2,247,272 49,538,422
Total comprehensive income for the year
Profit for the year - - - - - 4,642,292 4,642,292 89,871 4,732,163
Other comprehensive income (loss), net of income tax:
Loss on valuation and disposal of securities at fair
- - - - (2,436,859) - (2,436,859) (3,586) (2,440,445)
value through other comprehensive income
- - - - (220,097) - (220,097) - (220,097)
profit or loss (overlay approach)
Equity in other comprehensive loss of associates - - - - (15,763) - (15,763) - (15,763)
- - - - 12,936 - 12,936 1,796 14,732
operations
Net change in unrealized fair value of cash flow hedges - - - - (70,494) - (70,494) - (70,494)
Other comprehensive loss of separate account - - - - (113,207) - (113,207) - (113,207)
Remeasurements of the net defined benefit
- - - - 251,131 - 251,131 860 251,991
liabilites(assets)
- - - - (4,749) - (4,749) - (4,749)
designated at fair value through profit or loss
Total other comprehensive loss - - - - (2,597,102) - (2,597,102) (930) (2,598,032)
Total comprehensive income(loss) - - - - (2,597,102) 4,642,292 2,045,190 88,941 2,134,131
Other changes in equity

Dividends - - - - - (747,705) (747,705) - (747,705)
Interim dividends - - - - - (637,598) (637,598) - (637,598)
Dividends to hybrid bonds - - - - - (156,277) (156,277) - (156,277)
Issuance of hybrid bonds - 997,120 - - - - 997,120 - 997,120
Repayments of hybrid bonds - (134,683) - (317) - - (135,000) - (135,000)
Acquisition of treasury stock (Note 29) - - - (300,000) - - (300,000) - (300,000)
Retirement of treasury stock (Note 29) - - - 300,000 - (300,061) (61) - (61)
Change in other capital adjustments - - - (3,904) - - (3,904) - (3,904)
Change in other non-controlling interests - - - 85,791 - - 85,791 355,503 441,294
- 862,437 - 81,570 - (1,841,641) (897,634) 355,503 (542,131)
Reclassification of OCI retained earnings - - - - (682) 682 - - -
Balance at December 31, 2022 W 2,969,641 4,196,968 12,095,043 (582,859) (3,582,720) 33,342,633 48,438,706 2,691,716 51,130,422
See accompanying notes to the consolidated financial statements
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Consolidated Statements of Cash Flows
Cash flows from operating activities

Profit before income taxes W 6,349,251 5,583,664
Adjustments for:
Interest income 31 (20,108,666) (14,724,230)
Interest expense 31 7,644,985 3,954,905
Dividend income 33 (142,529) (124,531)
Net fees and commission expense 32 126,665 124,486
Net insurance loss 27 404,300 1,356,064
Net loss (gain) on financial instruments at fair value through profit or
loss 34 541,832 (174,279)
Net loss on derivatives 10 719,766 64,128
Net gain on financial instruments at fair value through profit or loss
(overlay approach) 9 (313,211) (43,003)
Net loss (gain) on foreign currency translation 68,860 (21,130)
Net gain on financial instruments designated at fair value through
profit or loss 35 (806,741) (423,914)
Net loss (gain) on disposal of securities at fair value through other
comprehensive income 11 127,393 (85,596)
Net loss on disposal of securities at amortized cost 11 101 319
Provision for allowance for credit loss 36 1,292,296 974,685
Employee benefit 25 194,952 221,259
Depreciation and other amortization 37 1,053,820 902,692
Other operating expense 39 427,362 457,359
Equity method income, net 15 (121,697) (158,600)
Other non-operating expense (income) 40 (437,203) 447,138
(9,327,715) (7,252,248)
Changes in assets and liabilities:

Due from banks at amortized cost (1,059,733) 2,690,535
Securities at fair value through profit or loss 5,535,664 (2,934,113)
Due from banks at fair value through profit or loss - 92,944
Loans at fair value through profit or loss (721,736) 341,140
Financial instruments designated at fair value through profit or loss 1,100,240 (9,466)
Derivative instruments 726,249 14,548
Loans at amortized cost (24,109,475) (28,740,535)
Other assets 152,673 (6,920,943)
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Consolidated Statements of Cash Flows (Continued)
Deposits W 18,309,172 36,948,828

Liabilities for defined benefit obligations (341,740) (261,750)
Provisions (59,400) (25,526)
Other liabilities 211,712 (4,489,460)
(256,374) (3,293,798)
Income taxes paid (1,693,408) (1,149,965)

Interest received 19,205,026 14,325,392
Interest paid (6,773,240) (4,114,027)
Dividends received 89,020 100,936
Net cash inflow from operating activities 7,592,560 4,199,954
Cash flows from investing activities

Decrease in financial instruments at fair value through profit or loss 5,175,744 4,362,417
Increase in financial instruments at fair value through profit or loss (5,976,774) (5,409,361)
Proceeds from disposal of securities at fair value through other
comprehensive income 21,493,133 29,991,033
Acquisition of securities at fair value through other comprehensive
income (23,515,761) (37,575,878)
Proceeds from disposal of securities at amortized cost 5,397,628 5,203,156
Acquisition of securities at amortized cost (13,125,363) (7,343,501)
Proceeds from disposal of property and equipment 13, 40 93,511 20,068
Acquisition of property and equipment 13 (326,546) (334,874)
Proceeds from disposal of intangible assets 14, 40 23,040 15,867
Acquisition of intangible assets 14 (616,581) (555,340)
Proceeds from disposal of investments in associates 15 516,735 357,401
Acquisition of investments in associates 15 (657,836) (588,827)
Proceeds from disposal of investment property 16, 40 259,453 276
Acquisition of investment property 16 (6,883) (8,292)
Proceeds from disposal of assets held for sale 624,837 47,792
Change in other assets (238,869) (220,636)
Proceeds from settlement of hedging derivative financial
instruments 12,585 61,502
Payment of settlement of hedging derivative financial instruments (135,669) (53,313)
Net cash flow from business combination 47 (27,840) -
Net cash outflow from investing activities (11,031,456) (12,030,510)
12
Consolidated Statements of Cash Flows (Continued)
Cash flows from financing activities

Issuance of hybrid bonds W 997,120 1,154,597
Repayments of hybrid bonds (135,000) -
Net increase in borrowings 6,145,271 849,212
Proceeds from debt securities issued 39,521,966 28,561,082
Repayments of debt securities issued (41,777,940) (24,143,252)
Increase in financial liabilities designated at fair value through profit
or loss 49,993 -
Change in other liabilities 239,591 83,067
Dividends paid (1,540,871) (1,218,761)
Proceeds from settlement of hedging derivative financial instruments 2,391,556 1,223,033
Payment of settlement of hedging derivative financial instruments (2,319,927) (1,210,366)
Acquisition of treasury stock (300,000) (79)
Disposition and redemption of treasury stock (60) 23,588
Increase(decrease) in non-controlling interests 382,929 (84,998)
Redemption of lease liabilities (259,913) (275,273)
Payment of stock issuance costs - (105)
Net cash inflow from financing activities 3,394,715 4,961,745
Effect of exchange rate changes on cash and cash equivalents held (57,837) 112,854
Decrease in cash and cash equivalents (102,018) (2,755,957)
Cash and cash equivalents at beginning of year 44 24,103,443 26,859,400
Cash and cash equivalents at end of year 44 W 24,001,425 24,103,443
13
Notes to the Consolidated Financial Statements
1. Reporting entity
Shinhan Financial Group Co., Ltd., the controlling company, and its subsidiaries included in consolidation
(collectively the “Group”) are summarized as follows:
(a) Controlling company
Shinhan Financial Group Co., Ltd. (the “Shinhan Financial Group” or the “Company”), the controlling company, is
incorporated on September 1, 2001 for the main purposes of controlling, managing and funding Shinhan Bank,
Shinhan Securities Co., Ltd., Shinhan Capital Co., Ltd. and Shinhan BNP Asset Management Co., Ltd. by way of
share transfers. The total capital stock amounted to W1,461,721 million. Also, Shinhan Financial Group’s shares
have been listed on the Korea Exchange since September 10, 2001 and Shinhan Financial Group’s American
Depositary Shares have been registered with the Securities and Exchange Commission (SEC) and listed on the New
York Stock Exchange since September 16, 2003.
(b) Ownership of Shinhan Financial Group and its major consolidated subsidiaries as of December 31, 2022 and
2021 are as follows:
Date of Ownership (%)
financial December December
Investor Investee(*1) Location information 31, 2022 31, 2021
Shinhan Financial
Shinhan Bank Korea December 31 100.0 100.0
Group Co., Ltd.
〃 Shinhan Card Co., Ltd. 〃〃 100.0 100.0
〃 Shinhan Securities Co., Ltd. (*2) 〃〃 100.0 100.0
〃 Shinhan Life Insurance Co., Ltd. 〃〃 100.0 100.0
〃 Shinhan Capital Co., Ltd. 〃〃 100.0 100.0
〃 Jeju Bank 〃〃 75.3 75.3
Shinhan Credit Information Co., Ltd.
〃〃〃 - 100.0
(*3)
Shinhan Alternative Investment
〃〃〃 - 100.0
Management Inc. (*4)
Shinhan Asset Management Co., Ltd.
〃〃〃 100.0 100.0
(*4)
〃 SHC Management Co., Ltd. 〃〃 100.0 100.0
〃 Shinhan DS 〃〃 100.0 100.0
〃 Shinhan Savings Bank 〃〃 100.0 100.0
〃 Shinhan Asset Trust Co., Ltd. (*5) 〃〃 100.0 60.0
〃 Shinhan AITAS Co., Ltd. 〃〃 99.8 99.8
〃 Shinhan REITs Management Co., Ltd. 〃〃 100.0 100.0
〃 Shinhan AI Co., Ltd. 〃〃 100.0 100.0
〃 Shinhan Venture Investment Co., Ltd. 〃〃 100.0 100.0
Shinhan EZ General Insurance, Ltd.
〃〃〃 85.1 -
(*6)
Shinhan Bank Shinhan Bank America USA 〃 100.0 100.0
〃 Shinhan Bank Europe GmbH Germany 〃 100.0 100.0
〃 Shinhan Bank Cambodia Cambodia 〃 97.5 97.5
〃 Shinhan Bank Kazakhstan Limited Kazakhstan 〃 100.0 100.0
〃 Shinhan Bank Canada Canada 〃 100.0 100.0
〃 Shinhan Bank (China) Limited China 〃 100.0 100.0
〃 Shinhan Bank Japan Japan 〃 100.0 100.0
〃 Shinhan Bank Vietnam Ltd. Vietnam 〃 100.0 100.0
〃 Banco Shinhan de Mexico Mexico 〃 99.9 99.9
〃 PT Bank Shinhan Indonesia Indonesia 〃 99.0 99.0
Shinhan Bank Japan SBJDNX Japan 〃 100.0 100.0
14
1. Reporting entity (continued)
(b) Ownership of Shinhan Financial Group and its major consolidated subsidiaries as of December 31, 2022 and
2021 are as follows (continued):
Date of Ownership (%)

financial December December
Investor Investee(*1) Location information 31, 2022 31, 2021
Shinhan Credit Information Co.,
Shinhan Card Co., Ltd. Korea December 31 100.0 -
Ltd.(*3)
〃 LLP MFO Shinhan Finance Kazakhstan 〃 100.0 100.0
〃 PT. Shinhan Indo Finance(*7) Indonesia 〃 76.3 50.0+1 share
〃 Shinhan Microfinance Co., Ltd. Myanmar 〃 100.0 100.0
〃 Shinhan Vietnam Finance Co., Ltd. Vietnam 〃 100.0 100.0
Shinhan Securities Co., Shinhan Securities America Inc.(*8)
USA 〃 100.0 100.0
Ltd.
〃 Shinhan Securities Asia Ltd.(*9) Hong Kong 〃 100.0 100.0
SHINHAN SECURITIES VIETNAM
〃 Vietnam 〃 100.0 100.0
CO., LTD.
〃 PT. Shinhan Sekuritas Indonesia Indonesia 〃 99.0 99.0
PT Shinhan Sekuritas PT. Shinhan Asset Management
Indonesia 〃 75.0 75.0
Indonesia Indonesia
Shinhan Life Insurance
Shinhan Financial Plus Korea 〃 100.0 100.0
Co., Ltd.
〃 Shinhan CubeOn Co., Ltd. 〃〃 100.0 100.0
Shinhan Life Insurance Vietnam Co.,
〃 Vietnam 〃 100.0 100.0
Ltd.
Shinhan Asset SHINHAN ASSET MGT HK,
Management Co., LIMITED Hong Kong 〃 100.0 100.0
Ltd.
Shinhan DS SHINHAN DS VIETNAM CO., LTD. Vietnam 〃 100.0 100.0
(*1) Subsidiaries such as trust, beneficiary certificate, corporate restructuring fund and private equity fund which are
not actually operating their own business are excluded.
(*2) Shinhan Investment Co., Ltd. has changed its name to Shinhan Securities Co., Ltd. on October 1, 2022.
(*3) On July 28, 2022, the Company disposed 100% of shares to Shinhan Card.
(*4) Shinhan Asset Management Co., Ltd. and Shinhan Alternative Investment Management Inc. have merged on
January 5, 2022 to form a company named Shinhan Asset Management Co., Ltd.
(*5) The Group has acquired remaining shares of Asia Trust Co., Ltd. during the period, and Asia Trust Co., Ltd.
became the Group’s wholly-owned subsidiary. Asia Trust Co., Ltd. has changed its name to Shinhan Asset Trust Co.,
Ltd.
(*6) The Group has acquired additional 94.54 % of shares of BNP Paribas Cardif General Insurance, Ltd. (5.46 %
of shares of Shinhan Life Insurance Co., Ltd.) during the period, and BNP Paribas Cardif General Insurance, Ltd.
became the Group’s wholly-owned subsidiary. BNP Paribas Cardif General insurance, Ltd. has changed its name to
Shinhan EZ General Insurance, Ltd. The controlling company participated in a paid-in capital increase of W 80
billion conducted by Shinhan EZ General Insurance, Ltd. and the Group's share ratio decreased from 100% to 85.1%.
(*7) The paid-in capital increase was completed during the period, and the Group’s share ratio has increased from
50 % + 1 share to 76.3 %.
(*8) Shinhan Investment America Inc. has changed its name to Shinhan Securities America Inc. during the period.
(*9) Shinhan Investment Asia Ltd. has changed its name to Shinhan Securities Asia Ltd. during the period.
15
1. Reporting entity (continued)
(c) Consolidated structured entities
Consolidated structured entities are as follows:
Consolidated
Category structured entities Description
Trust Shinhan Bank (including A trust is consolidated when the Group as a trustee is exposed to
development trust) and variable returns, if principle or interest amounts of the entrusted
17 others properties falls below guaranteed amount, the Group should
compensate it, and the Group has the ability to affect those
returns.
Asset-Backed MPC Yulchon Green I An entity for asset backed securitization is consolidated when the
Securitization and 226 others Group has sole decision-making authority to dispose assets or
change the conditions of the assets, and the Group is exposed to,
or has rights to related variable returns by providing credit
enhancement and purchases of subordinated securities.
Structured SHPE Holdings One Co., An entity established for structured financing relating to real
Financing Ltd. estate, shipping, or mergers and acquisitions is consolidated,
when the Group has the greatest credit to the entity, has sole
decision-making authority of these Entities due to the entities
default, and is exposed to, or has rights to related variable returns.
Investment Fund KoFC Shinhan Frontier An investment fund is consolidated, when the Group manages or
Champ 2010-4 PEF and invests assets of the investment funds on behalf of other investors
149 others as a collective investor or a business executive, or has the ability
to dismiss the manager of the investment funds, and is exposed
to, or has rights to, the variable returns.
(*) The Group provides ABCP purchase agreements and others of W6,940,100 million for the purpose of credit
enhancement of structured companies.
16
2. Basis of preparation
(a) Statement of compliance
The Group maintains its accounting records in Korean won and prepares statutory financial statements in the Korean
language (Hangul) in accordance with International Financial Reporting Standards as adopted by the Republic of
Korea (K-IFRS). The accompanying consolidated financial statements have been condensed, restructured and
translated into English from the Korean language financial statements.
Certain information attached to the Korean language financial statements, but not required for a fair presentation of
the Group's financial position, financial performance or cash flows, is not presented in the accompanying consolidated
The consolidated financial statements of the Group were authorized for issue by the Board of Directors on February
8, 2023. and the consolidated financial statements will be submitted for approval to the stockholder’s meeting to be
held on March 23, 2023.
(b) Basis of measurement
The consolidated financial statements have been prepared on the historical cost basis, except for the following material
items in the statement of financial position:
- derivative financial instruments measured at fair value

- financial instruments at fair value through profit or loss measured at fair value
- financial instruments at fair value through other comprehensive income measured at fair value
- liabilities for cash-settled share-based payment arrangements measured at fair value
- financial assets and liabilities designated as hedged items in a fair value hedge accounting of which changes in fair
value attributable to the hedged risk recognized in profit or loss
- liabilities for defined benefit plans recognized at the net of the total present value of defined benefit obligations
less the fair value of plan assets
(c) Functional and presentation currency
The respective financial statements of the Group entities are prepared in the functional currency of the respective
economic environment in which the group entities operate. These consolidated financial statements are presented and
reported in Korean won, which is the Controlling Company’s functional currency and the currency of the primary
economic environment in which the Group operates.
(d) Use of estimates and judgments
The preparation of the consolidated financial statements in conformity with K-IFRS requires management to make
judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of
assets, liabilities, income and expenses. If the estimates and assumptions based on management's best judgment as of
December 31, 2022 are different from the actual environment, these estimates and actual results may be different.
Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are
recognized in the period in which the estimates are revised and in any future periods affected.
Information about critical judgments in applying accounting policies that have a significant effect on the amounts
recognized in the consolidated financial statements and information about assumptions and estimation uncertainties
that have a significant risk of resulting in a material adjustment within the next financial year are described in Note 5.
In preparing these consolidated financial statements, the significant judgments made by management in applying the
Group’s accounting policies and the key sources of estimation uncertainty are the same as those that applied to the
consolidated financial statements as of and for the year ended December 31, 2021.
17
2. Basis of preparation (continued)
(e) Standards and amendments adopted by the Group
The Group has newly applied the following accounting policies upon preparation of the annual consolidated
financial statements for the year ended December 31, 2022.
i) K-IFRS No. 1103 'Business combination' amended – Reference to the Conceptual Framework
The amendments update a reference of definition of assets and liabilities to be recognized in a business combination
in revised Conceptual Framework for Financial Reporting. However, the amendments add an exception for the
recognition of liabilities and contingent liabilities within the scope of Korea IFRS 1037 ‘Provisions, Contingent
Liabilities and Contingent Assets’, and K-IFRS 2121 ‘Levies’. The amendments also clarify that contingent assets
should not be recognized at the acquisition date. The amendments do not have a significant impact on the consolidated
ii) K-IFRS No. 1016 ‘Property, Plant and Equipment ' amended – Proceeds before the intended use
The amendments require the entity to recognize the proceeds from selling such items, and the costs of producing those
items, in profit or loss, and prohibit an entity from deducting from the cost of an item of property, plant and equipment
any proceeds from selling items produced while the entity is preparing the asset for its intended use. The amendments
do not have a significant impact on the consolidated financial statements.
iii) K-IFRS No. 1037, ‘Provisions, Contingent Liabilities and Contingent Assets’ amended - Onerous Contracts: Cost
of Fulfilling a Contract
The amendments clarify that the direct costs of fulfilling a contract include both the incremental costs of fulfilling the
contract and an allocation of other costs directly related to fulfilling contracts when assessing whether the contract is
onerous. The amendments do not have a significant impact on the consolidated financial statements.
iv) Annual Improvements to K-IFRSs 2018-2020 Cycle
For Annual Improvements to K-IFRSs 2018-2020 Cycle, the amendments will take effect for annual periods beginning
after January 1, 2022 and are permitted for early application. The amendments do not have a significant impact on the
consolidated financial statements.
- K-IFRS No.1101, ‘First-time Adoption of K-IFRS’-First-time adopter subsidiaries

- K-IFRS No.1109, ‘Financial Instruments’ -10% test-related fee for financial liabilities removal
- K-IFRS No.1041, ‘Agriculture’ - Fair value measurement
18
2. Basis of preparation (continued)
(e) Standards and amendments adopted by the Group (continued)
v) K-IFRS No. 1007, ‘Statements of Cash flows’ – Cash and cash equivalents
The Group did not classify deposits with restrictions under relevant regulations, such as reserve deposits, as cash and
cash equivalents. However, in accordance with the IFRS Interpretation Committee's agenda decision in April 2022
'Demand deposits restricted on use under contracts with third parties' and the response to K-IFRS inquiry stating
'whether the reserve deposit should be classified as cash and cash equivalents', it was changed to classify reserve
deposits corresponding to demand deposits as cash and cash equivalents retroactively. The impact of this change in
accounting policy is as follows:
① Impact on consolidated statements of cash flows
December 31, 2022 December 31, 2021

Decrease in cash flows from operating activities W (877,724) (6,880,161)
Effect of exchange rate changes on cash and cash
equivalents denominated in foreign currencies (1,575) 3,301
Increase in cash and cash equivalents at the
beginning of the period 11,019,558 17,896,418
Increase in cash and cash equivalents at the end of W
the period 10,140,259 11,019,558
② Impact on notes to the consolidated statements of cash flows

Decrease in restricted deposits – excluded cash and
W
cash equivalents 10,140,259 11,019,558
19
3. Significant accounting policies
Significant accounting policies applied by the Group upon the preparation of consolidated financial statements under
K-IFRS are described below, and consolidated financial statements for the year ended December 31, 2022 and
comparative periods were prepared using the same accounting policy, except for changes in accounting policy
described in the Note 2.
(a) Operating segments
The Group has divided the segments based on internal reports reviewed periodically by the top sales decision maker
to make decisions about the resources allocated to the segments and evaluate their performance. There are six
reporting segments as described in Note 7. The reporting segments are operated separately according to the nature
of the goods and services provided and the organizational structure of the Group.
The segment reported to the Chief Executive Officer (“CEO”) includes items directly attributable to a segment as
well as those that can be allocated on a reasonable basis.
It is the CEO’s responsibility to evaluate the resources to be distributed to the business and the performance of the
business, and to make strategic decisions.
(b) Basis of consolidation
i) Subsidiaries
Subsidiaries are investees controlled by the Group. The Group controls an investee when it is exposed to, or has
rights to, variable returns from its involvement with the investee and has the ability to affect those returns through
its power over the investee. The financial statements of subsidiaries are included in the consolidated financial
statements from the date that control commences until the date that control ceases.
If a member of the Group uses accounting policies other than those adopted in the consolidated financial statements
for the same transactions and events in similar circumstances, appropriate adjustments are made to its financial
statements in preparing the consolidated financial statements.
ii) Structured entity
The Group establishes or invests in various structured entities. It does not own shares directly or indirectly for these
companies. Considering the terms and conditions of the arrangement in which the structured entity was established,
the Group gains and losses from the operations of the structured entity. It is included in the consolidated entities if it
is determined that it has the ability to direct the activities of a consolidated structured entity that can most significantly
affect these gains and losses. The Group does not recognize any non-controlling interests as equity in relation to
structured entities in the consolidated statements of financial position since the non-controlling interests in these
entities are recognized as liabilities of the Group.
iii) Intra-group transactions eliminated on consolidation
Intra-group balances, transactions, and any unrealized income and expenses arising from intra-group transactions are
eliminated in preparing the consolidated financial statements. Unrealized intra-group losses are recognized as
expense if intra-group losses indicate an impairment that requires recognition in the consolidated financial statements.
20
3. Significant accounting policies (continued)
(b) Basis of consolidation (continued)
iv) Non-controlling interests
Non-controlling interests in a subsidiary are accounted for separately from the parent’s ownership interests in a
subsidiary. Each component of net profit or loss and other comprehensive income is attributed to the owners of the
parent and non-controlling interest holders, even when the non-controlling interests balance is reduced to below zero.
(c) Business combinations
i) Business combinations
A business combination is accounted for by applying the acquisition method, unless it is a combination involving
entities or businesses under common control.
Each identifiable asset or liability is measured at its acquisition-date fair value except for below:
- Leases are required to be classified based on the contractual terms and other factors
- Only those contingent liabilities assumed in a business combination that are a present obligation and can be
measured reliably are recognized
- Deferred tax assets or liabilities are recognized and measured in accordance with K-IFRS No.1012, ‘Income Taxes’
- Employee benefit arrangements are recognized and measured in accordance with K-IFRS No.1019, ‘Employee
Benefits’
- Compensation assets are recognized and measured on the same basis as the items subject to compensation
- Reacquired rights are measured in accordance with special provisions
- Liabilities or equity instruments related to share-based payment transactions are measured in accordance with the
method in K-IFRS No.1102, ‘Share-based Payment’
- Non-current assets held for sale are measured at fair value less costs to sell in accordance with K-IFRS No.1105,
‘Non-current Assets Held for Sale and Discontinued Operations’
As of the acquisition date, non-controlling interests in the acquired are measured as the non-controlling interests'
proportionate share of the acquirer’s identifiable net assets.
The transfer consideration in a business combination is measured at fair value, which is calculated as the sum of the
acquisition-date fair values of the assets transferred by the acquirer, the liabilities incurred by the acquirer to former
owners of the acquired and the equity interests issued by the acquirer. However, any portion of the acquirer's share-
based payment awards exchanged for awards held by the acquired employee that is included in transfer consideration
in the business combination shall be measured in accordance with the method described above rather than at fair
value.
Acquisition-related costs are costs the acquirer incurs to effect a business combination. Those costs include broker's
fees; advisory, legal, accounting, valuation and other professional or consulting fees; general administrative costs,
including the costs of maintaining an internal acquisitions department; and costs of registering and issuing debt and
equity securities. Acquisition-related costs, other than those associated with the issue of debt or equity securities,
which are recognized in accordance with K-IFRS No.1032 and 1109, are expensed in the periods in which the costs
are incurred and the services are received.
21
(d) Investments in associates and joint ventures
An associate is an entity in which the Group has significant influence, but not control, over the entity’s financial and
operating policies. Significant influence is presumed to exist when the Group holds between 20 and 50 percent of
the voting power of another entity.
A joint venture is a joint arrangement whereby the parties that have joint control of the arrangement have rights to
the net assets of the arrangement. Joint control is the contractually agreed sharing of control of an arrangement, which
exists only when decisions about the relevant activities require the unanimous consent of the parties sharing control.
The investment in an associate and a joint venture is initially recognized at cost, and the carrying value is increased
or decreased to recognize the Group’s share of the profit or loss and changes in equity of the associate and the joint
venture after the date of acquisition. Intra-group balances and transactions, and any unrealized income and expenses
arising from intra-group transactions, are eliminated the Group's stake in preparing the consolidated financial
statements. Unrealized losses are also being derecognized unless the transaction provides evidence of an impairment
of the transferred assets.
If an associate or a joint venture uses accounting policies different from those of the Group for transactions and
events in similar circumstances, appropriate adjustments are made to its financial statements in applying the equity
method.
When the carrying value of that interest, including any long-term investments, is reduced to nil, the recognition of
further losses is discontinued except to the extent that the Group has an obligation or has to make payments on behalf
of the investee for further losses.
(e) Cash and cash equivalents
The Group classifies cash balances, call deposits and highly liquid investment assets with original maturities of three
months or less from the acquisition date that are easily converted into a fixed amount of cash, and are subject to an
insignificant risk of changes in their fair value as cash and cash equivalents. Equity instruments are excluded from
cash equivalents unless they are, in substance, cash equivalents, like in the case of preferred shares acquired within
a short period of their maturity and with a specified redemption date.
22
(f) Non-derivative financial assets
Financial assets are recognized in the consolidated statement of financial position when the Group becomes a party
to the contract. In addition, a standardized purchase or sale (a purchase or sale of a financial asset under a contract
whose terms require delivery of the asset within the time frame established generally by regulation or convention in
the market concerned) is recognized on the trade date.
A financial asset is measured initially at its fair value plus, for an item not at Fair Value Through Profit or Loss
(“FVTPL”), transaction costs that are directly attributable to its acquisition of the financial asset. Transaction costs
on the financial assets at FVTPL that are directly attributable to the acquisition are recognized in profit or loss as
incurred.
i) Financial assets designated at FVTPL
Financial assets can be irrevocably designated as measured at FVTPL despite of classification standards stated below,
if doing so eliminates or significantly reduces an accounting mismatch that would otherwise arise from measuring
assets or liabilities or recognizing the gains or losses on them on different bases.
ii) Equity instruments
For the equity instruments that are not held for short-term trading, at initial recognition, the Group may make an
irrevocable election to present subsequent changes in fair value in other comprehensive income. Equity instruments
that are not classified as financial assets at Fair Value through Other Comprehensive Income (“FVOCI”) are classified
as financial assets at FVTPL.
The Group subsequently measures all equity investments at fair value. Valuation gains or losses of the equity
instruments that are classified as financial assets at FVOCI previously recognized as other comprehensive income is
not reclassified as profit or loss on recognition. The Group recognizes dividends in profit or loss when the Group’s
right to receive payments of the dividend is established.
Valuation gains or losses due to changes in fair value of the financial assets at FVTPL are recognized in the
consolidated statement of comprehensive income gains or losses on financial assets at FVTPL. Impairment loss
(reversal) on equity instruments at FVOCI is not recognized separately.
iii) Debt instruments
Subsequent measurement of debt instruments depends on the Group’s business model in which the asset is managed
and the contractual cash flow characteristics of the asset. Debt instruments are classified as financial assets at
amortized cost, at FVOCI, or at FVTPL. Debt instruments are reclassified only when the Group’s business model
changes.
① Financial assets at amortized cost
Assets that are held within a business model whose objective is to hold assets to collect contractual cash flows where
those cash flows represent solely payments of principal and interest are measured at amortized cost. A gain or loss
on a financial asset measured at amortized cost that is not subject to a hedging relationship is recognized in profit or
loss when the financial asset is derecognized or impaired. Interest income on the effective interest method is included
in the ‘Interest income’ in the consolidated statement of comprehensive income.
23
(f) Non-derivative financial assets (continued)
② Financial assets at FVOCI
Assets that are held within a business model whose objective is achieved by both collecting contractual cash flows
and selling financial assets and, where the assets’ cash flows represent solely payments of principal and interest, are
measured at FVOCI. Other than (reversal of) impairment losses, interest income, foreign exchange differences, gains
or losses of the financial assets at FVOCI are recognized as other comprehensive income in equity. On removal,
gains or losses accumulated in other comprehensive income are reclassified to profit or loss. The interest income on
the effective interest method is included in the ‘Interest income’ in the consolidated statement of comprehensive
income. Foreign exchange differences and impairment losses are included in the ‘Net foreign currency transaction
gain’ and ‘Provision for credit losses allowance’ in the consolidated statement of comprehensive income, respectively.
③ Financial assets at FVTPL
Debt securities other than financial assets at amortized costs or FVOCI are classified at FVTPL. Unless hedge
accounting is applied, gains or losses from financial assets at FVTPL are recognized as profit or loss and are included
in ‘Net gain(loss) on financial assets at fair value through profit or loss’ in the consolidated statement of
comprehensive income.
iv) Embedded derivatives
Financial assets with embedded derivatives are classified regarding the entire hybrid contract, and the embedded
derivatives are not separately recognized. The entire hybrid contract is considered when it is determined whether the
contractual cash flows represent solely payments of principal and interest.
v) Derecognition of financial assets
The Group derecognizes a financial asset when the contractual rights to the cash flows from the asset expire, or it
transfers the rights to receive the contractual cash flows on the financial asset in a transaction in which substantially
all the risks and rewards of ownership of the financial asset are transferred. If the Group does not have or transfer
most of the risks and rewards of ownership of the financial asset, the entity shall remove the financial asset if it does
not control the financial asset. If the Group continues to control the financial asset, it continues to recognize the
transferred asset to the extent that it is continuously involved and recognizes the related liability together.
If the Group transfers the right to cash flows of a financial asset but holds most of the risks and rewards of ownership
of the financial asset, the entity shall continue to recognize the asset. Also, the amount of disposal received is
recognized as a liability.
vi) Offsetting
Financial assets and financial liabilities are offset and the net amount is presented in the consolidated statement of
financial position only when the Group currently has a legally enforceable right to set off the recognized amounts,
and intends either to settle on a net basis or to realize the asset and settle the liability simultaneously.
24
(g) Derivative financial instruments
Derivatives are initially recognized at fair value. Subsequent to initial recognition, derivatives are measured at fair
value, and changes therein are accounted for as described below.
i) Hedge accounting
The Group holds forward exchange contracts, interest rate swaps, currency swaps and other derivative contracts to
manage interest rate risk and foreign exchange risk. The Group designated derivatives as hedging instruments to
hedge the risk of changes in the fair value of assets, liabilities or firm commitments (a fair value hedge) and foreign
currency risk of highly probable forecasted transactions or firm commitments (a cash flow hedge).
On initial designation of the hedge, the Group formally documents the relationship between the hedging instrument(s)
and hedged item(s), including the risk management objectives and strategy in undertaking the hedge transaction. In
addition, this document describes the hedging instrument, hedged item, and the method of evaluating the effect of
the hedging instrument offsetting changes in the fair value or cash flow of the hedged item due to the hedged risk at
the initiation of the hedging relationship and in subsequent periods.
① Fair value hedge
Changes in the fair value of a derivative hedging instrument designated as a fair value hedge are recognized in profit
or loss. The gain or loss from remeasuring the hedging instrument at fair value for a derivative hedging instrument
and the gain or loss on the hedged item attributable to the hedged risk are recognized in profit or loss in the same line
item of the separate statement of comprehensive income.
The Group discontinues fair value hedge accounting if the hedging instrument expires or is sold, terminated or
exercised, or if the hedge no longer meets the criteria. Any adjustment arising from G/L on the hedged item attributable
to the hedged risk is amortized to profit or loss from the date the hedge accounting is discontinued.
② Cash flow hedge
When a derivative is designated to hedge the variability in cash flows attributable to a particular risk associated with
a recognized asset or liability or a highly probable forecasted transaction that could affect profit or loss, the effective
portion of changes in the fair value of the derivative is recognized in other comprehensive income, net of tax, and
presented in the hedging reserve in equity. Any ineffective portion of changes in the fair value of the derivative is
recognized immediately in profit or loss.
If the hedging instrument no longer meets the criteria for hedge accounting, expires or is sold, terminated, exercised,
or the designation is revoked, then hedge accounting is discontinued prospectively. The cumulative gain or loss on
the hedging instrument that has been recognized in other comprehensive income is reclassified to profit or loss in the
periods during which the forecasted transaction occurs. If the forecasted transaction is no longer expected to occur,
then the balance in other comprehensive income is recognized immediately in profit or loss.
③ Net investment hedge
The portion of the change in fair value of a financial instrument designated as a hedging instrument that meets the
requirements for hedge accounting for a net investment in a foreign operation is recognized in other comprehensive
income and the ineffective portion of the hedge is recognized in profit or loss. The portion recognized as other
comprehensive income that is effective as a hedge is recognized in the statement of comprehensive income as a result
of reclassification adjustments in accordance with K-IFRS No. 1021, "Effect of Changes in Foreign Exchange Rates"
at the time of disposing of its overseas operations or disposing of a portion of its overseas operations to profit or loss.
25
(g) Derivative financial instruments (continued)
ii) Other derivative financial instruments
All derivatives except those designated as hedging instruments and are effective in hedging are measured at fair value.
Changes in the fair value of other derivative financial instrument not designated as a hedging instrument are
recognized immediately in profit or loss.
iii) Gains and losses on initial recognition
Any difference between the fair value of over the counter derivatives at initial recognition and the amount that would
be determined at that date using a valuation technique in a situation in which the valuation is dependent on
unobservable parameters is not recognized in profit or loss but is deferred, and the deferred gains and losses on initial
transaction are depreciated on a straight-line basis over the life of the instrument or the remainder is recognized in
profit or loss immediately when the fair value becomes observable.
(h) Expected credit losses of financial assets
The Group recognizes allowance for credit loss(“ACL”) for debt instruments measured at amortized cost and fair
value through other comprehensive income, and lease receivable, loan commitments and financial guarantee
contracts using the expected credit loss impairment model. Financial assets migrate through the following three
stages based on the change in credit risk since initial recognition and allowance for credit loss for the financial assets
are measured at the 12-month expected credit losses (“ECL”) or the lifetime ECL, depending on the stage.
Category Allowance for credit loss

STAGE 1 When credit risk has not increased 12-months ECL: the ECL associated with the probability of
significantly since the initial default events occurring within the next 12 months
recognition
STAGE 2 When credit risk has increased Lifetime ECL: a lifetime ECL associated with the probability
significantly since the initial of default events occurring over the remaining lifetime
recognition
STAGE 3 When assets are impaired Same as above
The Group, meanwhile, only recognizes the cumulative changes in lifetime expected credit losses since the initial
recognition as an allowance for credit loss for purchased or originated credit-impaired financial assets.
The total period refers to the expected life span of the financial instrument up to the contract expiration date.
26
(h) Expected credit losses of Financial assets (continued)
i) Reflection of forward-looking information
The Group reflects forward-looking information presented by internal experts based on a variety of information when
measuring expected credit losses. Assuming that the measurement factor of expected credit losses has a certain
correlation with economic fluctuations, the expected credit losses are calculated by reflecting forward-looking
information through modeling between macroeconomic variables and measurement factors.
ii) Measurement of expected credit loss of financial assets at amortization cost
The expected credit loss of an amortized financial asset is measured as the difference between the present value of the
cash flows expected to be received and the cash flow expected to be received. For this purpose, we calculate expected
cash flows for individually significant financial assets. For non-individual significant financial assets, the financial
assets collectively include expected credit losses as part of a set of financial assets with similar credit risk
characteristics.
Expected credit losses are deducted using the allowance for credit loss account and are written off if the financial
assets are not recoverable. The allowance for credit loss is increased when the written-off loan receivables are
subsequently collected and changes in the allowance for credit loss are recognized in profit or loss.
iii) Measurement of estimated credit loss of financial assets at FVOCI
The calculation of expected credit losses is the same as for financial assets measured at amortized cost, but changes
in allowance for credit loss are recognized in other comprehensive income. In the case of disposal and redemption of
other comprehensive income - fair value, the allowance for credit loss is reclassified from other comprehensive income
to profit or loss and recognized in profit or loss.
(i) Property and equipment
Property and equipment are initially measured at cost and after initial recognition. The cost of property and equipment
includes expenditures arising directly from the construction or acquisition of the asset, any costs directly attributable
to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended
by management and the initial estimate of the costs of dismantling and removing the item and restoring the site on
which it is located. Certain land and buildings are measured at fair value at the date of transition to K-IFRS, which is
deemed cost, in accordance with K-IFRS No.1101, ‘First-time Adoption of K-IFRS’. Subsequent to initial recognition,
the asset is measured at cost less accumulated depreciation and accumulated impairment losses, if any.
The Group recognizes in the carrying value of an item of property and equipment the cost of replacing part of property
and equipment when that cost is incurred if it is probable that future economic benefits associated with the item will
flow to the Group and the cost of the item can be measured reliably. The carrying value of those parts that are replaced
is derecognized. The costs of the day-to-day servicing of property and equipment are recognized in profit or loss as
incurred.
Land is not depreciated. Other property and equipment are depreciated on a straight-line basis over the estimated
useful lives, which most closely reflect the expected pattern of consumption of the future economic benefits embodied
in the asset. The estimated useful lives for the current and comparative periods are as follows:
Descriptions Useful lives

Buildings 40~50 years
Other properties 4~5 years
27
(i) Property and equipment (continued)
Depreciation methods, useful lives and residual values are reassessed at each fiscal year-end and in case adjustments
are needed, it is accounted for as a change in accounting estimate.
(j) Intangible assets
Intangible assets are measured initially at cost and, subsequently, are carried at cost less accumulated amortization
and accumulated impairment losses.
Amortization of intangible assets except for goodwill is calculated on a straight-line basis over the estimated useful
lives of intangible assets as shown below, from the date that they are available for use. The residual value of intangible
assets is zero. However, if there are no foreseeable limits to the periods over which certain intangible assets are
expected to be available for use, they are determined to have indefinite useful lives and are not amortized.
Descriptions Useful lives

Software 5 years
Capitalized development cost 5 years
Other intangible assets 5 years or contract periods
Amortization periods and the amortization methods for intangible assets with finite useful lives are reviewed at the
end of each reporting period. The useful lives of intangible assets that are not being amortized are reviewed at the end
of each reporting period to determine whether events and circumstances continue to support indefinite useful life
assessments for those assets. Changes are accounted for as changes in accounting estimates.
Expenditures on research activities, undertaken with the prospect of gaining new technical knowledge and
understanding, are recognized in profit or loss as incurred. Development expenditures are capitalized only if
development costs can be measured reliably, the product or process is technically and commercially feasible, future
economic benefits are probable, and the Group intends to and has sufficient resources to complete development and
to use or sell the asset. Other development expenditures are recognized in profit or loss as incurred.
(k) Investment properties
Investment property is property held either to earn rental income or for capital appreciation or both. An investment
property is initially recognized at cost including any directly attributable expenditure. Subsequent to initial recognition,
the asset is measured at cost less accumulated depreciation and accumulated impairment losses, if any.
The depreciation method and the estimated useful lives for the current and comparative periods are as follows:
Descriptions Useful lives Depreciation method

Buildings 40 years Straight-line
28
(l) Leases
i) Accounting treatment as the lessee
The Group leases various tangible assets, such as real estate and vehicles, and each of the lease contract is negotiated
individually and includes a variety of terms and conditions. There are no other restrictions imposed by the lease
contracts, but the lease assets cannot be provided as collaterals for borrowings.
At the commencement date of the lease, the Group recognizes the right-of-use assets and the lease liabilities. Each
lease payment is allocated to payment for the principal portion of the lease liability and financial costs. The Group
recognizes in profit or loss the amount calculated to produce a constant periodic rate of interest on the lease liability
balance for each period as financial costs. Right-of-use assets are depreciated using a straight-line method from the
commencement date over the lease term.
Lease liabilities are measured at the present value of the lease payments that are not paid at the commencement date
of the lease, and the lease payments included in the measurement of the liabilities consist of the following payments:
- Fixed payments (including in-substance fixed payments, less any lease incentives receivable)
- Variable lease payments depending on the index or rate (interest rate)
- Amounts expected to be paid by the lessee under the residual value guarantee
- The exercise price of a purchase option if the lessee is reasonably certain to exercise that option
- Payments of penalties for terminating the lease, if the lease term reflects the lessee exercising an option to
terminate the lease
If the interest rate implicit in the lease is readily determined, the lease payments are discounted by the rate; if the rate
is not readily determined, the lessee’s incremental borrowing rate is used.
The cost of the right-of-use assets comprise:
- The amount of the initial measurement of the lease liability

- Any lease payments made at or before the commencement date (less any lease incentives received)
- Any initial direct costs incurred by the lessee
- An estimate of costs to be incurred by the lessee in dismantling and removing the underlying asset, restoring the
site on which it is located or restoring the underlying asset to the condition required by the terms and conditions of
the lease
Lease payments related to short-term leases or low-value assets are recognized as current expenses over the lease term
using the straight-line method. A short-term lease is a lease that has a lease term of 12 months or less, and the low-
value assets lease is a lease of which the underlying asset value is not more than W6 million.
Additional considerations for the Group when accounting for lessees include:
Extension and termination options are included in a number of real estate lease contracts of the Group. In determining
the lease term, management considers all relevant facts and circumstances that create an economic incentive not to
exercise the options. The periods covered by, a) an option to extend the lease if the lessee is reasonably certain to
exercise that option, or b) an option to terminate the lease if the lessee is reasonably certain not to exercise that option,
is included when determining the lease term. The Group reassesses whether the Group is reasonably certain to exercise
the extension option, or not to exercise a termination option, upon the occurrence of either a significant event or a
significant change in circumstances that is within the control of the lessee, and affects whether the lessee is reasonably
certain to exercise an option not previously included in its determination of the lease term, or not to exercise an option
previously included in its determination of the lease term.
29
(l) Leases (continued)
ii) Accounting treatment as the lessor
The Group leases out to lessee various tangible assets, including vehicles under operating and finance lease contracts,
and each of the lease contract is negotiated individually and includes a variety of terms and conditions. The risk
management method for all rights held by the Group in the underlying assets includes repurchase agreements, residual
value guarantees, etc.
① Finance leases
The Group recognizes them as a receivable at an amount equal to the net investment in the lease, and the difference
from the carrying value of the leasing asset as of the commencement date is recognized as profit or loss from disposal
of the lease asset. In addition, interest income is recognized by applying the effective interest method for the amount
of the Group's net investment in finance leases. Lease-related direct costs are included in the initial recognition of
financial lease receivables and are accounted for in a way that reduces the revenue for the lease term.
② Operating leases
The Group recognizes the lease payments as income on straight-line basis, and adds the lease initial direct costs
incurred during negotiation and contract phase of the operating lease to the carrying value of the underlying asset. In
addition, the depreciation policy of operating lease assets is consistent with the Group’s depreciation policy of other
similar assets.
(m) Assets held for sale
Non-current assets, or disposal groups comprising assets and liabilities, that are expected to be recovered primarily
through sale rather than through continuing use, are classified as held for sale. In order to be classified as held for
sale, the asset (or disposal group) must be available for immediate sale in its present condition and its sale must be
highly probable. The assets or disposal group that are classified as non-current assets held for sale are measured at
the lower of their carrying value and fair value less cost to sell.
The Group recognizes an impairment loss for any initial or subsequent write-down of an asset (or disposal group) to
fair value less costs to sell, and a gain for any subsequent increase in fair value less costs to sell, up to the cumulative
impairment loss previously recognized.
An asset that is classified as held for sale or part of a disposal group classified as held for sale is not depreciated (or
amortized).
30
(n) Impairment of non-financial assets
The carrying values of the Group’s non-financial assets, other than assets arising from employee benefits, deferred
tax assets and non-current assets held for sale, are reviewed at the end of the reporting period to determine whether
there is any indication of impairment. If any such indication exists, then the asset’s recoverable amount is estimated.
Goodwill and intangible assets that have indefinite useful lives or that are not yet available for use, irrespective of
whether there is any indication of impairment, are tested for impairment annually by comparing their recoverable
amount to their carrying value.
The Group estimates the recoverable amount of an individual asset, and if it is impossible to measure the individual
recoverable amount of an asset, then the Group estimates the recoverable amount of cash-generating unit (“CGU”).
The recoverable amount of an asset or a CGU is the greater of its value in use and its fair value less costs to sell. The
value in use is estimated by applying a pre-tax discount rate that reflects current market assessments of the time value
of money and the risks specific to the asset or the CGU for which estimated future cash flows have not been adjusted,
to the estimated future cash flows expected to be generated by the asset or the CGU.
An impairment loss is recognized if the carrying value of an asset or a CGU exceeds its recoverable amount.
Impairment losses are recognized in profit or loss.
Goodwill acquired in a business combination is allocated to each CGU that is expected to benefit from the synergies
arising from the goodwill acquired. Any impairment identified at the CGU level will first reduce the carrying value
of goodwill and then be used to reduce the carrying value of the other assets in the CGU on a pro rata basis.
Impairment losses of goodwill cannot be reversed in the subsequent period. At the end of each reporting period, the
Group reviews whether there are any signs of impairment loss that has been recognized in the prior period no longer
exists or has decreased, and reversal occurs only if there is a change in the estimate used to determine the recoverable
amount after the recognition of the impairment loss. The asset’s carrying value does not exceed the carrying value
that would have been determined, net of depreciation or amortization, if no impairment loss had been recognized.
(o) Non-derivative financial liabilities
The Group recognizes financial liabilities in the consolidated statement of financial position when the Group becomes
a party to the contractual provisions of the financial liability in accordance with the substance of the contractual
arrangement and the definitions of financial liabilities.
Transaction costs on the financial liabilities at FVTPL are recognized in profit or loss as incurred.
i) Financial liabilities designated at FVTPL
Financial liabilities can be irrevocably designated as measured at FVTPL if doing so eliminates or significantly
reduces an accounting mismatch that would otherwise arise from measuring assets or liabilities or recognizing the
gains and losses on them on different bases, or a group of financial instruments is managed and its performance is
evaluated on a fair value basis, in accordance with a documented risk management or investment strategy. The
amount of change in the fair value of the financial liabilities designated at FVTPL that is attributable to changes in
the credit risk of that liabilities shall be presented in other comprehensive income.
ii) Financial liabilities at FVTPL
Since initial recognition, financial liabilities at FVTPL is measured at fair value, and changes in the fair value are
recognized as profit or loss.
31
(o) Non-derivative financial liabilities (continued)
iii) Other financial liabilities
Non-derivative financial liabilities other than financial liabilities at fair value through profit or loss are classified as
other financial liabilities, and other financial liabilities include deposits, borrowings, debt securities and etc. At the
date of initial recognition, other financial liabilities are measured at fair value minus transaction costs that are directly
attributable to the acquisition. Subsequent to initial recognition, other financial liabilities are measured at amortized
cost using the effective interest method.
The Group derecognizes a financial liability from the consolidated statement of financial position when it is
extinguished (i.e. when the obligation specified in the contract is discharged, canceled or expires).
(p) Foreign currency
i) Foreign currency transactions
Transactions in foreign currencies are translated to the respective functional currencies of the Group at exchange rates
at the dates of the transactions. Monetary assets and liabilities denominated in foreign currencies at the end of the
reporting period are retranslated to the functional currency using the exchange rate at the end of the reporting period.
Non-monetary foreign currency items measured at fair value are converted to the exchange rate on the date the fair
value is determined, and non-monetary items measured at historical cost are converted to the exchange rate on the
trading day.
All foreign currency differences arising from the conversion of monetary items are recognized in profit or loss.
However, the Group excludes currency differences at the time of settlement of monetary items, conversion differences
in net investments in foreign operations and conversion differences for financial liabilities designated cash flow hedges.
If gains or losses arising from non-monetary items are recognized in other comprehensive income, the effect of
exchange rate changes included in those gains or losses is also recognized in other comprehensive income. In addition,
if recognized in profit or loss, the effect of exchange rate changes is also recognized in profit or loss.
ii) Foreign operations
If the presentation currency of the Group is different from a foreign operation’s functional currency, the financial
statements of the foreign operation are translated into the presentation currency using the following methods:
The assets and liabilities of foreign operations, whose functional currency is not the currency of a hyperinflationary
economy, are translated to presentation currency at exchange rates at the reporting date. The income and expenses of
foreign operations are translated to functional currency at exchange rates at the dates of the transactions. Foreign
currency differences are recognized in other comprehensive income.
Any goodwill arising on the acquisition of a foreign operation and any fair value adjustments to the carrying values
of assets and liabilities arising on the acquisition of that foreign operation are treated as assets and liabilities of the
foreign operation and are translated using the exchange rate at the reporting date.
Upon disposal of foreign operations, the cumulative amount of the exchange differences recognized as a separate line
item within the equity and other comprehensive income is reclassified from other comprehensive income to profit and
loss at the time of recognition. When disposing subsidiaries, including foreign operations, proportional shares of
exchange differences recognized in other comprehensive income are reverted to non-controlling shares of foreign
operations, and in other cases, disposing some of the portions of foreign operations, only the proportional shares of
the accumulated exchange differences recognized in other comprehensive income are classified as profit and loss.
32
(p) Foreign currencies (continued)
iii) Net investment in a foreign operation
If the settlement of a monetary item receivable from or payable to a foreign operation is neither planned nor likely in
the foreseeable future, then foreign currency differences arising on the item form part of the net investment in the
foreign operation and are recognized in other comprehensive income and reclassified from equity to profit or loss on
disposal of the net investment.
(q) Equity capital
i) Capital stock
Capital stock is classified as equity. Incremental costs directly attributable to the transaction of stock are deducted
from equity, net of any tax effects.
Preferred stocks are classified as equity if they do not need to be repaid or are repaid only at the option of the Group
and if payment is determined by the Group's discretion, and dividends are recognized when the shareholders' meeting
approves the dividends. Preferred stocks that are eligible for reimbursement of a defined or determinable amount on
or after a certain date are classified as liabilities. The related dividend is recognized in profit or loss at the time of
occurrence as interest expense.
ii) Hybrid bonds
The Group classifies an issued financial instrument, or its component parts, as a financial liability or an equity
instrument depending on the substance of the contractual arrangement of such financial instrument. Hybrid bonds
where the Group has an unconditional right to avoid delivering cash or another financial asset to settle a contractual
obligation are classified as an equity instrument and presented in equity. Hybrid bonds issued by subsidiaries of the
group are classified as non-controlling interests according to this classification criteria. In addition, distributions paid
are treated as net income attributable to non-controlling interests in the consolidated statement of comprehensive
income.
iii) Capital adjustment
The effect of changes in ownership interests in subsidiaries that do not lose control over the equity attributable to
owners of the parent is included in capital adjustments.
33
(r) Employee benefits
i) Short-term employee benefits
Short-term employee benefits are employee benefits that are due to be settled within 12 months after the end of the
period in which the employees render the related service. When an employee has rendered service to the Group during
an accounting period, the Group recognizes the undiscounted amount of short-term employee benefits expected to be
paid in exchange for that service.
ii) Other long-term employee benefits
The Group’s net obligation in respect of other long-term employee benefits that are not expected to be settled wholly
before 12 months after the end of the annual reporting period in which the employees render the related service, is the
amount of future benefit that employees have earned in return for their service in the current and prior periods. That
benefit is discounted to determine its present value. Remeasurements are recognized in profit or loss in the period in
which they arise.
iii) Retirement benefits: defined contribution plans
The Group recognizes the contribution expense as an account of severance payments in profit or loss in the period
according to the defined contribution plans, when an employee provides work services for a certain period of time,
except for the case when it is included in the cost of the asset. Contributions payable are recognized as liabilities
(unpaid expenses) after deducting the contributions already paid. In addition, if the contribution already paid exceeds
the contribution due for services provided before the end of the reporting period, the future contribution is reduced or
cash refunded due to the excess is recognized as an asset (prepaid expense).
iv) Retirement benefits: defined benefit plans
For the year ended December 31, 2022, defined benefit liabilities related to the defined benefit plan are recognized by
deducting the fair value of external reserve from the present value of the defined benefit plan debt.
Defined benefit liabilities are calculated annually by independent actuaries using the predicted unit credit method. If
the net present value of the defined benefit obligation less the fair value of the plan assets is an asset then the present
value of the economic benefits available to the entity in the form of a refund from the plan or a reduction in future
contributions to the plan.
The remeasurement component of net defined benefit liability is the change in the effect on asset ceiling except for
the amount included in the net interest income of plan assets and net revenues of plan assets excluding actuarial gains
and losses to the net of defined benefit liabilities. It is immediately recognized in other comprehensive income. The
Group determines the net interest on the net defined benefit obligation (asset) by multiplying the net defined benefit
obligation (asset) by the discount rate determined at the beginning of the annual reporting period and is the net present
value of the net defined benefit obligation. It is determined by taking into consideration the fluctuations. Net interest
expense and other expenses related to defined benefit plans are recognized in profit or loss.
When an amendment or reduction of the system occurs, the gain or loss resulting from the change or decrease in the
benefits to the past service is immediately recognized in profit or loss. The Group recognizes gains or losses on
settlement when the defined benefit plan is settled.
34
(r) Employee benefit (continued)
v) Termination benefits
Termination benefits are recognized as an expense when the Group is committed demonstrably, without realistic
possibility of withdrawal, to a formal detailed plan to either terminate employment before the normal retirement date,
or to provide termination benefits as a result of an offer made to encourage voluntary redundancy. Termination benefits
for voluntary redundancies are recognized as an expense if the Group has made an offer of voluntary redundancy, it
is probable that the offer will be accepted, and the number of acceptances can be estimated reliably. If benefits are
payable more than 12 months after the reporting period, then they are discounted to their present value.
(s) Share-based payment transactions
In regards to the share-based payment transactions which grants an employee a stock or stock option in exchange for
the goods or services provided, if the fair value of the goods or services provided or the fair value of the goods or
services provided cannot be reliably measured, the Group indirectly measures the fair value of the goods or services
based on the fair value of the given equity, and the amount is recognized as employee benefit expenses and capital
during the vesting period. For share-based payment awards with non-vesting conditions, the grant date fair value of
the share-based payment is measured to reflect such conditions and there is no true-up for differences between
expected and actual outcomes.
The fair value of the amount payable to employees in respect of share appreciation rights, which are settled in cash,
is recognized as an expense with a corresponding increase in liabilities, over the period that the employees
unconditionally become entitled to payment. The liability is remeasured at each reporting date and at settlement date.
Any changes in the fair value of the liability are recognized as personnel expense in profit or loss.
(t) Provisions
Provisions are recognized when the Group has a present legal or constructive obligation as a result of a past event, it
is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a
reliable estimate can be made of the amount of the obligation.
The risks and uncertainties that inevitably surround many events and circumstances are taken into account in reaching
the best estimate of a provision. Where the effect of the time value of money is material, provisions are determined at
the present value of the expected future cash flows.
Provisions are reviewed at the end of each reporting period and adjusted to reflect the current best estimate. If it is no
longer probable that an outflow of resources embodying economic benefits will be required to settle the obligation,
the provision is reversed.
Provisions shall be used only for expenditures for which the provisions are originally recognized.
35
(u) Financial guarantee contract
A financial guarantee contract is a contract that requires the Group to make specified payments to reimburse the holder
for a loss it incurs because a specified debtor fails to make payment when due in accordance with the original or
modified terms of a debt instrument.
Financial guarantee contracts are recognized initially at their fair value, and the initial fair value is amortized over the
life of the financial guarantee contract.
After initial recognition, financial guarantee contracts are measured at the higher of:
- Loss allowance in accordance with K-IFRS No.1109, ‘Financial Instruments’
- The amount initially recognized less, when appropriate, the cumulative amount of income recognized in
accordance with the principles of K-IFRS No.1115, ‘Revenue from Contracts with Customers’
(v) Insurance contracts
i) Investment contract liabilities, including insurance contract liabilities and discretionary dividend factors
The group establishes liability reserves in accordance with the Insurance Business Law and the related regulations.
The reserves are calculated according to the insurance policy, insurance premiums and liability reserve calculation
method. The main contents are as follows.
i-1) Premium reserves
This is the amount to be accumulated for insurance claim payable for the existing contracts as of the end of the
reporting period, the reserves are calculated by deducting the present value of net premiums to be earned after the
end of the reporting period from the present value of claims to be paid to the policyholder after the date of the
statement of financial position.
i-2) Unearned premium reserves
Among premiums that are due for payment before the end of the reporting period, the prepaid premium reserves for
the next period are calculated through a premium and liability reserves calculation method.
i-3) Guarantee reserves
The total amount of reserve for variable minimum guarantee (①) and reserve for general account guarantee (②) is
provided as guarantee reserve.
① Variable minimum guarantee reserve
This reserve is the amount that must be accumulated to guarantee insurance premiums above a certain level for
contracts maintained as of the end of the reporting period, and is measured at the higher of:
i) the average amount of the top 30% of net loss expected in the future
ii) the minimum required amount by insurance types, minimum guarantees, level of guarantees and limits of stock
investment portion
36
(v) Insurance contracts (continued)
(continued)
i-3) Guarantee reserves (continued)
② General account guarantee reserve
As of the end of the reporting period, the amount of reserve for insurance contracts that are insured under general
account is required to be paid to guarantee the level of refunds, and select the largest of the following:
i) Average of the amount deducted from the appropriateness of the liability reserve calculated by excluding the
guarantee option from the appropriateness evaluation of the liability reserve calculated by including the guarantee
option for each interest rate scenario
ii) The amount of compensation (including annulment contract) against the guarantee received from the policy
holder by the rate applied at the premium calculation in the insurance premium and liability reserve calculation
method
i-4) Reserve for outstanding claims
As of the end of the reporting period, the Group has accrued the amount for which the reason for the payment of
insurance claims, etc. has been incurred and the amount of the claim payment has not been paid yet due to the dispute
or lawsuit related to the insurance settlement (pending in the Financial Dispute Mediation Committee). In addition,
the Group recognizes unrecognized losses based on historical experience.
i-5) Reserves for participating policyholders' dividends
The reserve is provided for the purpose of contributing to the policyholder dividend according to the laws and
regulations and the reserve for dividend reserve for the policyholder and the dividend reserve for the subsequent
business year.
The policyholder dividend reserve is the amount that is not paid as of the end of the reporting period for the settlement
amount and the reserve for dividend policy for the next fiscal year is based on the policyholder dividend calculated
on the insurance contract effective as of the end of the reporting period.
① Excess crediting rate reserve
In the case of a dividend insurance contract which has been maintained for more than one year as of the end of the
reporting period among contracts signed before October 1, 1997, the difference between the planned interest rate and
the one-year maturity deposit rate shall be preserved.
② Mortality dividend reserve
Dividends arising from contracts that are maintained for more than one year at the end of the reporting period are used
to offset the expected mortality and actual mortality rates applied to premiums.
37
(continued)
i-5) Reserves for participating policyholders' dividends (continued)
③ Interest dividend reserve
For the contracts that have been maintained for more than one year as of the end of the reporting period, the amount
calculated by applying the interest dividend reserve rate to the net written premium reserve less the unearned
acquisition costs. However, the insurance sold before October 1, 1997 is applied to the amount deducted from the net
premium in the event that the planned interest rate by the insurance product is less than the dividend standard.
④ Reserves for long-term special dividends
For the effective dividend policy agreement that has been maintained for 6 years or more, the amount calculated by
applying the long-term special dividend rate to the amount deducted from the net premiums for the end of the year.
However, insurance sold before October 1, 1997 is applied to the deduction of unearned premiums at the end of the
year when the expected interest rate by the insurance product is less than the dividend standard rate.
i-6) Reserve for interest dividends
In order to cover the policyholder dividend in the future, the total amount is set aside according to business
performance according to the law or insurance contracts.
i-7) Reserve for dividend insurance loss reserve
In accordance with the regulations set by the supervisory authority, dividend insurance profit is accumulated within
30/100 of the contractor's stake. The reserve for the compensation of dividend insurance losses shall compensate for
the loss of dividend insurance contracts in accordance with the provisions of the fiscal year within five years from the
end of the accumulated reporting period and shall be used as the policyholder dividend source for the individual
contractor.
ii) Contractor's equity adjustment
In accordance with K-IFRS No.1039, the Group classifies the gains and losses of available for sale financial assets as
policyholder's equity and shareholders' equity based on the reserve ratio for dividend paying and non-dividend paying
insurance for the year ended December 31, 2022, and the portion of policyholder's equity is accounted as
policyholder's equity adjustment.
38
iii) Evaluation of debt appropriateness
At the end of each reporting period, the group assesses whether the recognized insurance liability is appropriate using
the current estimates of future cash flows of the policy, and if the carrying value of the insurance liability is deemed
to be inappropriate in terms of the estimated future cash flows. The reserve for premiums is added to the profit or loss
by the amount corresponding to the deficiency.
iv) Reinsurance assets
The group presents the recoverable amount of reinsurance assets. The group assesses at the end of each reporting
period whether there is objective evidence that a reinsurance asset is impaired. If there is objective evidence that the
entity will not be able to collect all amounts under the terms of the agreement as a result of an event that occurred
after the initial recognition and if the event has a reliable and measurable impact on the amount to be received. If
reinsurance assets are determined to be impaired, impairment loss is recognized in the profit and loss for the current
period.
v) Deferred acquisition cost
The group recognizes unrealized gains and losses arising from long-term insurance contracts as assets and amortizes
the premiums over the life of the insurance contracts equally. If the contribution period exceeds 7 years, the
amortization period is 7 years if there is an unrecognized balance at the date of the cancelation, the entire amount of
the cancelation is amortized in the fiscal year to which the cancelation date belongs. But, if the ratio of additional
premiums is higher at the early stage of the insurance period for the purpose of recovering the excess of the unearned
premiums and the early settlement costs, the new settlement expenses are treated as the period expense.
39
(w) Recognition of revenues and expenses
The Group’s revenues are recognized using five-step revenue recognition model as follows:
① ‘Identifying the contract’ → ② ‘Identifying performance obligations’ → ③ ‘Determining the transaction price’ →
④ ‘Allocating the transaction price to performance obligations’ → ⑤ ‘Recognizing the revenue by satisfying
performance obligations’.
i) Interest income and expense
Interest income and expense are recognized in profit or loss using the effective interest method. The effective interest
rate is the rate that exactly discounts the estimated future cash payments and receipts through the expected life of the
financial asset or liability or, where appropriate, a shorter period to the net carrying value of the financial asset or
liability.
When calculating the effective interest rate, the Group estimates cash flows considering all contractual terms of the
financial instrument, but does not consider future credit losses. The calculation includes all fees and points paid or
received between parties to the contract that are an integral part of the effective interest rate, and all other premiums
or discounts. When it is not possible to estimate reliably the cash flows or the expected life of a financial instrument,
the Group uses the contractual cash flows over the full contractual term of the financial instrument.
Once a financial asset or a group of similar financial assets has been written down as a result of an impairment loss,
interest income is thereafter recognized using the rate of interest used to discount the future cash flows for the purpose
of measuring the impairment loss.
ii) Fees and commission
The recognition of revenue for financial service fees depends on the purposes for which the fees are assessed and the
basis of accounting for any associated financial instrument.
① Fees that are an integral part of the effective interest rate of a financial instrument
Such fees are generally treated as an adjustment to the effective interest rate. Such fees may include compensation for
activities such as evaluating the borrower’s financial condition, evaluating and recording guarantees, collateral and
other security arrangements, preparing and processing documents, closing the transaction and the origination fees
received on issuing financial liabilities. However, when the financial instrument is measured at fair value with the
change in fair value recognized in profit or loss, the fees are recognized as revenue when the instrument is initially
recognized.
② Fees earned as services are provided
Fees and commission income, including investment management fees, sales commission, and account servicing fees,
are recognized as the related services are provided.
③ Fees that are earned on the execution of a significant act
The fees that are earned on the execution of a significant act including commission on the allotment of shares or other
securities to a client, placement fee for arranging a loan between a borrower and an investor and sales commission,
are recognized as revenue when the significant act has been completed.
40
(w) Recognition of revenues and expenses (continued)
iii) Insurance income
The Group recognizes insurance income for the insurance premium paid of which the payment date arrived by the
premium payment methods of the insurance contract; and recognizes advance receipts for the insurance premium
paid of which the payment date has not arrived at the end of the reporting period.
iv) Dividend income
Dividend income is recognized when the shareholder’s right to receive payment is established. Usually this is the ex-
dividend date for equity securities. The Group provides compensation in various forms such as payment discounts and
gifts.
(x) Revenue from Contracts with Customers
The fair value of the consideration received or receivable in exchange for the initial transaction is allocated to the
reward points ("points") and the remainder of the fee income. The Group provides compensation in various forms
such as payment discounts and free gifts. The consideration to be allocated to the points is estimated based on the fair
value of the monetary benefits to be provided in consideration of the expected recovery rate of points awarded in
accordance with the customer loyalty program and the expected time of recovery. Points for distribution through the
cost paid by the customer is recognized by deducting from the revenue from fees.
41
(y) Income tax
Income tax expense comprises current and deferred tax. Current tax and deferred tax are recognized in profit or loss
except to the extent that it relates to a business combination, or items recognized directly in equity or in other
Current tax is the expected tax payable or receivable on the taxable profit or loss for the year, using tax rates enacted
or substantively enacted at the end of the reporting period and any adjustment to tax payable in respect of previous
years. The taxable profit is different from the accounting profit for the period since the taxable profit is calculated
excluding the temporary differences, which will be taxable or deductible in determining taxable profit (tax loss) of
future periods, and non-taxable or non-deductible items from the accounting profit. The unpaid taxes related to the
Group's current tax are calculated using the enacted or substantially established tax rate.
Deferred tax is recognized, using the asset-liability method, in respect of temporary differences between the carrying
values of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. A deferred
tax liability is recognized for all taxable temporary differences. A deferred tax asset is recognized for all deductible
temporary differences to the extent that it is probable that taxable profit will be available against which they can be
utilized. However, deferred tax is not recognized for the following temporary differences: taxable temporary
differences arising on the initial recognition of goodwill, or the initial recognition of assets or liabilities in a
transaction that is not a business combination and that affects neither accounting profit or loss nor taxable income.
The Group applies a consolidated tax method based on a consolidated tax base and a domestic corporation (hereinafter
referred to as the "Consolidated Entity Corporation ") that is fully controlled by the consolidated parent company and
the consolidated tax base.
The Group evaluates the feasibility of temporary differences, taking into account the future taxable income of
individual companies and consolidated groups, respectively. The change in deferred tax assets (liabilities) was
recognized as expense (income), except for the amount associated with items directly added to the equity account.
For additional temporary differences in subsidiaries, associates, and joint venture investment interests, the Group
may control the timing of the disappearance of temporary differences. All deferred tax liabilities are recognised
except in cases where temporary differences are unlikely to dissipate in the foreseeable future. Deferred tax assets
arising from deductible temporary differences are likely to be extinguished in the foreseeable future. In addition, it
is recognised when taxable income is likely to be used for temporary differences.
The carrying value of deferred tax assets is reviewed at the end of each reporting period. The carrying value of
deferred tax assets is reduced when it is no longer likely that sufficient taxable income will be generated to use
benefits from deferred tax assets.
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply to the period when the asset
is realized or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted
by the end of the reporting period. The measurement of deferred tax liabilities and deferred tax assets reflects the tax
consequences that would follow from the manner in which the Group expects, at the end of the reporting period to
recover or settle the carrying value of its assets and liabilities.
Deferred tax assets and liabilities are corporate taxes imposed by the same taxation authority. Deferred tax assets
and liabilities are offset only if there is a legally enforceable right to offset the related current tax liabilities and assets.
42
(y) Income tax (continued)
Because of the tax polices taken by the Group, tax uncertainties arise from the complexity of transactions and
differences in tax law analysis. Also, it arises from a tax refund suit, tax investigation, or a refund suit against the tax
authorities' tax amount. The Group paid the tax amount by the tax authorities in accordance with K-IFRS No. 2123.
However, it will be recognized as the corporate tax assets if there is a high possibility of a refund in the future. In
addition, the amount expected to be paid as a result of the tax investigation is recognized as the tax liability.
(z) Accounting for trust accounts
The Group accounts for trust accounts separately from its bank accounts under the Financial Investment Services
and Capital Markets Act No. 114 and thus the trust accounts are not included in the accompanying consolidated
financial statements. In this regard, the funds lent to the trust account are counted as trust account loans and loans
borrowed from the trust account as other accounting accounts (non-payment of the trust account). In accordance with
the Financial Investment Business Regulations, trust remuneration is acquired in connection with the operation,
management, and disposal of trust property, and it is counted as the operating profit of trust business.
(aa) Earnings per share
The Group presents basic and diluted earnings per share (EPS) data for its ordinary shares. Basic EPS is calculated
by dividing the profit or loss attributable to the ordinary shareholder of the Group by the weighted average number
of common shares outstanding during the period, adjusted for own shares held. Diluted EPS is determined by
adjusting the profit or loss attributable to ordinary shareholders and the weighted average number of ordinary shares
outstanding, adjusted for own shares held, for the effects of all dilutive potential ordinary shares, which comprise
share options granted to employees.
(ab) New standards and amendments not yet adopted by the Group
The following new accounting standards and amendments have been published that are not mandatory for annual
periods beginning after January 1, 2022, and have not been early adopted by the Group. The Group did not early
apply the following new standards and amendments when preparing consolidated financial statements
i) K-IFRS No. 1001 ‘Presentation of Financial Statements’ amended - Classification of Liabilities as Current or
Non-current
The amendments clarify that liabilities are classified as either current or non-current, depending on the substantive
rights that exist at the end of the reporting period. Classification is unaffected by the likelihood that an entity will
exercise right to defer settlement of the liability or the expectations of management. Also, the settlement of liability
includes the transfer of the entity’s own equity instruments, however, it would be excluded if an option to settle them
by the entity’s own equity instruments if compound financial instruments is met the definition of equity instruments
and recognized separately from the liability. The amendments should be applied for annual periods beginning on or
after January 1, 2024, and earlier application is permitted. The Group expects that the amendments will not have a
significant impact on the consolidated financial statements.
ii) K-IFRS No. 1001 ‘Presentation of Financial Statements’ amended - Disclosure of Accounting Policies
The amendments require an entity to define and to disclose its material information about accounting policies. The
amendments should be applied for annual periods beginning on or after January 1, 2023, and earlier application is
permitted. The Group expects that the amendments will not have a significant impact on the consolidated financial
statements.
43
(ab) New standards and amendments not yet adopted by the Group (continued)
iii) K-IFRS No. 1008 ‘Accounting Policies, Changes in Accounting Estimates and Errors' amended - Definition of
Accounting Estimates
The amendments clarify the definition of accounting estimates and how distinguish it from a change in accounting
policies. The amendments should be applied for annual periods beginning on or after January 1, 2023, and earlier
application is permitted. The Group expects that the amendments will not have a significant impact on the consolidated
iv) K-IFRS No. 1012 ‘Income Taxes’ - Deferred Tax Related to Assets and Liabilities Arising from a Single
Transaction
Under the amendments, an entity does not apply the initial recognition exemption for transactions which involve the
recognition of both an asset and liability – which in turn leads to equal taxable and deductible temporary differences.
The amendments should be applied for annual periods beginning on or after January 1, 2023, and earlier application
is permitted. The Group expects that the amendments will not have a significant impact on the consolidated financial
statements.
v) K-IFRS No. 1001 ‘Presentation of Financial Statements’ – Disclosure of financial liabilities valuation gains or
losses with conditions for exercise price adjustment currently available as a draft, will be applicable when published
by K-IFRS
The amendments require disclosure of the carrying amount of the financial liability and its related gains or losses if,
all or part of a financial instrument subject to adjustment of the exercise price according to changes in the issuer's
stock price. The amendments should be applied for annual periods beginning on or after January 1, 2023, and earlier
application is permitted. The Group expects that the amendments will not have a significant impact on its consolidated
vi) K-IFRS No.1117 ‘Insurance Contracts’
① Key amendments to accounting policies
K-IFRS No. 1117 ‘Insurance Contracts’ enacted on April 23, 2021 will be applied for annual periods beginning on
or after January 1, 2023. The standard will replace K-IFRS No. 1104 ‘Insurance Contracts’ which is the current
standard.
The main features of K-IFRS No. 1117 include measurement of the current value of insurance liabilities, recognition
of insurance revenue on an accrual basis, and separate presentation of investment income from insurance
performance. Under K-IFRS No. 1104, insurance liability was measured using historical information (e.g., interest
rates at sale, etc.). In addition, when the entity receives the premium, it recognizes the premium received as an
insurance revenue on a cash basis and there is no obligation to present insurance and investment income or expense
separately. On the contrary, K-IFRS No. 1117 measures insurance liability at its present value (i.e. at the reporting
date) by using updated discount rates which reflect current market-based information such as assumptions and risks.
An insurance revenue is recognized on an accrual basis, reflecting the services provided to the policyholder by the
insurance company for each accounting periods. Moreover, insurance finance income or expenses and the investment
income or expenses will be presented separately.
If the Group applies K-IFRS No. 1117 in preparation of the financial statements, significant differences with current
financial statements may arise due to the following reasons. These differences do not include all of the future
differences and they may be changed depending on further analysis.
44
vi) K-IFRS No.1117 ‘Insurance Contracts’ (continued)
② Evaluation of insurance liabilities
Under K-IFRS No. 1117, the Group estimates all cash flows under the insurance contract, then measures insurance
liability by using discount rates that reflect assumptions and risks at the reporting date.
Specifically, the Group identifies a portfolio of insurance contracts which comprises contracts subject to similar
risks and managed together and disaggregates the groups of insurance contracts with similar profitability within the
portfolio. Then, the Group measures the groups of insurance contracts at the total of estimates of future cash flows
(reflecting cash flows related to insurance contracts and the time value of money), risk adjustment and contractual
service margin. Upon the application of K-IFRS No. 1117, contractual service margin account has been newly
introduced. The contractual service margin presents the unrealized profit that the Group will recognize as it provides
services in the future.
Reinsurance contract is an insurance contract issued by one entity (the reinsurer) to compensate another entity for
claims arising from one or more insurance contracts issued by that another entity (underlying insurance contracts).
When estimating present value of future cash flows arising from reinsurance contracts, the Group would use
assumptions consistent with those it uses for the underlying contracts.
The Group calculates the discount rate for measuring the current value of an insurance liability using the bottom-up
approach, such as, by adding a liquidity premium to the risk-free rate of return (risk-free interest rate term structure)
and the confidence level to calculate risk adjustment which reflects measurement of an uncertainty regarding the
amount and timing of cash flows in a non-financial risk (insurance risk, cancellation risk, cost risk, etc.).
For insurance liability measurement models, the General Model (GM) is applied for underlying contracts, etc., but
the Variable Fee Approach (VFA) is applied for insurance contracts that have direct participation features that meet
certain requirements. However, Premium Allocation Approach (PAA) is applied for contracts with of one year or
less coverage period.
③ Recognition and measurement of financial performance
According to K-IFRS No. 1117, insurance revenue is recognized on an accrual basis including services (insurance
coverage) provided to the policyholder for each accounting period. Investment components (such as cancellation or
maturity refunds) being repaid to the policyholder even if an insured event does not occur, are excluded from
insurance revenue. Insurance finance income or expenses and investment income or expenses are presented
separately to enable information users to understand the sources of profits or losses.
The Group includes time value of money and financial risk, and the effect of changes in the time value of money and
financial risk related to the groups of insurance contracts in the insurance finance income or expenses. This requires
the Group to make an accounting policy choice as to whether to disaggregate insurance finance income or expenses
for the period between profit or loss and other comprehensive income.
The Group disaggregates the amounts recognized in the statements of profit or loss and other comprehensive income
by portfolios. In case of applying the ‘General Model (GM)’, insurance finance income or expenses are recognized in
other comprehensive income.
45
④ Accounting policies related to transition
According to the transition of K-IFRS No. 1117, the Group shall adjust the groups of insurance contracts issued
before the transition date, that is measured at cost to be measured at its current value by applying a full retrospective
approach, modified retrospective approach or fair value approach (January 1, 2022, the beginning of the annual
reporting period immediately preceding the date of initial application).
In principle, the Group shall identify, recognize, and measure (full retrospective approach) each group of insurance
contracts as if K-IFRS No. 1117 had been applied even before the transition date. However, if this approach is
impracticable, the Group may choose to apply either the modified retrospective approach or fair value approach. On
the other hand, for groups of insurance contracts with direct participation features which meet certain criteria, a fair
value approach may be applied even if the full retrospective approach is applicable.
The objective of the modified retrospective approach is to achieve the closest outcome to full retrospective
application possible using reasonable and supportable information available without undue cost or effort. The fair
value approach is an approach of assessing a group of insurance contracts using fair value assessments, etc. in
accordance with K-IFRS No. 1113 ‘Fair Value Measurement’. To apply the fair value approach, the Group shall
determine the contractual service margin or loss component of the liability for remaining coverage at the transition
date as the difference between the fair value of a group of insurance contracts and the fulfilment cash flows measured
at that date.
The Group applies modified retrospective approach only for underlying contracts issued within three years before
the transition date, and fair value approach for other underlying contracts and reinsurance contracts held, to measure
insurance liability at transition date.
⑤ Preparation for application
The Group has completed setting up actuarial assumptions and models and insurance liability settlement system.
Before 2023, when the standard is first applied, the Group is planning to continue fostering and reinforcing
additional professionals and will constantly promote advancement, including improvements on system stability and
verification of the consistency of data output. Also, the Group is being overhauled and established an Internal
Control of Financial Reporting that goes along with the dynamic accounting environment in order to prepare and
disclose reliable accounting information.
The application of K-IFRS No. 1117 will not only result to a change in accounting standards, but will also affect
insurance product development, sales strategies, and long-term management strategies. Therefore, with the aim of
re-establishment of the overall business management system, the Group will continue to provide training to the
employees and report to the management the status and implementation plan of K-IFRS No. 1117.
46
⑥ Financial effects analysis
As the implementation of K-IFRS No. 1117 results to changes in the measurement of liabilities, revenue recognition,
etc., the Group expects that it will lead to a volatility in financial figures of financial statements prepared for the year
ended 2023.
The Group’s assessment of financial impact of the initial application of K-IFRS No. 1117 using the current financial
reporting system established as of December 31, 2022, for the financial statements prepared for the year ended 2022
are as follows. However, at this point, it is difficult in practice to provide reasonable estimates of the impact on future
financial statements, as sufficient review and analysis of accounting policies and actuarial assumptions and
methodology for the application of K-IFRS No. 1117 is still in progress. Therefore, the results on analysis are subject
to change depending on additional information and economic conditions available in the future.
(i) Impact on the statement of financial position and the statement of comprehensive income
The Group classifies financial assets according to its business model by introducing K-IFRS No.1109 ‘Financial
Instruments’, but it will change its classification and measurement for capital volatility management through market
valuation of insurance liabilities as it allows revaluation of the business model when introducing K-IFRS No. 1117
‘Insurance Contracts’ in 2023. Accordingly, the group assessed the preliminary financial impact by applying the
classification adjustments in K-IFRS No. 1117 to financial assets removed between the transition date and the initial
application date to present comparative information for financial assets whose classification and measurement
requirements in K-IFRS No. 1109 have been changed through business model revaluation.
47
⑥ Financial effects analysis (continued)
(i) Impact on the statement of financial position and the statement of comprehensive income (continued)
[Shinhan Life Insurance Co., Ltd.]
<Statement of Financial Position>

The statement of financial position prepared in accordance with K-IFRS No. 1104 and K-IFRS No. 1117 as at
December 31, 2022 are as follows:
Under K-IFRS Under K-IFRS

Accounts No. 1104 and Accounts No. 1117 and (B-A)
1109 (A) (*1) 1109 (B) (*2)
Total Assets 66,753,920 Total Assets 56,501,131 (10,252,789)
Cash and due from banks at Cash and due from banks at
amortized cost 1,112,577 amortized cost 1,653,704
Financial assets at fair value Financial assets at fair value
through profit or loss 6,662,617 through profit or loss 11,527,229
Securities at fair value Securities at fair value
through other comprehensive through other
income 10,946,361 comprehensive income 32,753,803
Securities at amortized cost 27,744,212 Securities at amortized cost 4,338,766
Loans at amortized cost 8,612,410 Loans at amortized cost 4,219,870
Reinsurance contract assets 295,621 Reinsurance contract assets 59,017
Other assets 11,380,122 Other assets 1,948,742
Total Liabilities 63,271,167 Total Liabilities 48,414,409 (14,856,758)
Insurance contract liabilities 53,369,918 Insurance contract liabilities 42,928,691
Reinsurance contract
liabilities 62,770
Investment contract liabilities 2,296,401
Other liabilities 9,901,249 Other liabilities 3,126,547
Total equity 3,482,753 Total equity 8,086,722 4,603,969
(*1) The amounts applied under K-IFRS No. 1109 ‘Financial Instruments’ and K-IFRS No. 1104 ‘Insurance
Contracts’ (Application of the overlay approach under K-IFRS No. 1104 to financial assets related to insurance
contracts).
Contracts’.
48
<Statement of Comprehensive Income>

The statement of comprehensive income prepared in accordance with K-IFRS No. 1104 and K-IFRS No. 1117 for
the year ended December 31, 2022 are as follows:

1109 (A) (*1) 1109 (B) (*2)
Operating income 9,412,664 Insurance service result 733,320
Insurance service revenue 760,665
Net reinsurance service
expenses (27,345)
Operating expenses (8,796,865) Net financial result (182,741)
Investment income 588,729
Insurance finance expenses (771,470)
Operating profit 615,799 Operating profit 550,579 (65,220)
Non-operating income or
Non-operating income
expenses (17,562) (17,673)
Profit before income taxes 598,237 Profit before income taxes 532,906 (65,331)
Income tax expense (134,644) Income tax expense (117,331)
Profit for the year 463,593 Profit for the year 415,575 (48,018)
Other comprehensive loss for Other comprehensive loss for
the year (2,122,609) the year (592,441)
Total comprehensive loss for Total comprehensive loss for
the year (1,659,016) the year (176,866) 1,482,150
contracts).
Contracts’.
<Statement of Cash Flows>

The statement of cash flows prepared in accordance with K-IFRS No. 1104 and K-IFRS No. 1117 for the year ended
Under K-IFRS No. Under K-IFRS No.

Accounts (B-A)
1104 and 1109 (A) (*1) 1117 and 1109 (B) (*2)
Cash flows from operating activities (931,218) (1,337,223) (406,005)
Cash flows from investing activities 288,321 623,849 335,528
Cash flows from financing activities (42,340) (42,340) -
contracts).
Contracts’.
49
[Shinhan EZ General Insurance, Ltd.]
<Statement of Financial Position>

The statement of financial position prepared in accordance with K-IFRS No. 1104 and K-IFRS No. 1117 as at

1109 (A) (*1) 1109 (B) (*2)
Total Assets 241,096 Total Assets 222,971 (18,125)
Cash and due from banks at Cash and due from banks at
amortized cost 133,996 amortized cost 133,996
Securities at fair value Securities at fair value
through other comprehensive through other
income 9,876 comprehensive income 9,876
Securities at amortized cost 40,016 Securities at amortized cost 40,016
Reinsurance contract assets 35,748 Reinsurance contract assets 24,713
Other assets 21,460 Other assets 14,370
Total Liabilities 115,448 Total Liabilities 85,520 (29,928)
Insurance contract liabilities 93,885 Insurance contract liabilities 75,318
Reinsurance contract
liabilities -
Investment contract liabilities -
Other liabilities 21,563 Other liabilities 10,202
Total equity 125,648 Total equity 137,451 11,803
Contracts’.
Contracts’.
50
<Statement of Comprehensive Income>

The statement of comprehensive income prepared in accordance with K-IFRS No. 1104 and K-IFRS No. 1117 for
the year ended December 31, 2022 are as follows:

1109 (A) (*1) 1109 (B) (*2)
Operating income 71,210 Insurance service result (11,060)
Insurance service revenue (7,977)
Net reinsurance service
expenses (3,083)
Operating expenses (86,452) Net financial result 1,490
Investment income 2,181
Insurance finance expenses (691)
Operating profit (15,242) Operating profit (9,570) 5,672
Non-operating income 212 Non-operating income 212
Profit before income taxes (15,030) Profit before income taxes (9,358) 5,672
Income tax expense - Income tax expense -
Profit for the year (15,030) Profit for the year (9,358) 5,672
Other comprehensive income Other comprehensive income
for the year 208 for the year 225
Total comprehensive loss for Total comprehensive loss for
the year (14,822) the year (9,133) 5,689
Contracts’.
Contracts’.
<Statement of Cash Flows>

The statement of cash flows prepared in accordance with K-IFRS No. 1104 and K-IFRS No. 1117 for the year ended
Under K-IFRS No. Under K-IFRS No.

Accounts (B-A)
1104 and 1109 (A) (*1) 1117 and 1109 (B) (*2)
Cash flows from operating activities 9,331 9,331 -
Cash flows from investing activities (59,056) (59,056) -
Cash flows from financing activities (79,183) (79,183) -
Contracts’.
Contracts’
51
(ii) Financial impact of transition to K-IFRS No. 1117
As of the transition date (January 1, 2022), the measurement of liability for underlying contracts held, using different
transition approaches is as follows:
Date issued Insurance contract Contractual

Transition approach
- insurance contract liabilities Service Margin
Modified retrospective approach 2019 - 2021 1,437,967 2,734,701
Fair value approach Before 2018 49,184,220 3,753,602
50,622,187 6,488,303
As of the transition date (January 1, 2022), the amount of reinsurance contracts held calculated by applying the fair
value approach is W 281,763 million of reinsurance contract liabilities.
Date issued Insurance contract Contractual

Transition approach
- insurance contract liabilities Service Margin
Modified retrospective approach 2019 – 2021 47,331 100
As of the transition date (January 1, 2022), the amount of reinsurance contracts held calculated by applying the fair
value approach is W 13,025 million of reinsurance contract liabilities.
(iii) Financial impact on insurance assets and liabilities
As of December 31, 2022, the amount of insurance contract liabilities applying K-IFRS No. 1117 is as follows:
Contractual Contractual
Insurance Insurance
Classification service margin service margin
contract liabilities contract assets
(under liabilities) (under assets)
Underlying contracts 42,928,691 6,924,913 - -
Reinsurance contracts 62,770 (83,185) 59,017 94,861
42,991,461 6,841,728 59,017 94,861
Contractual Contractual
Insurance Insurance
Classification service margin service margin
contract liabilities contract assets
(under liabilities) (under assets)
Underlying contracts 75,318 - 519 (94)
Reinsurance contracts - - 24,713 -
75,318 - 25,232 (94)
52
4. Financial risk management
(a) Overview
(a) Overview
Shinhan Financial Group Co., Ltd. (collectively the “Group”) manages various risks that may be arisen by each
business sector and the major risks to which the Group is exposed include credit risk, market risk, interest rate risk,
and liquidity risk. These risks are recognized, measured, controlled and reported in accordance with risk
management guidelines established at the controlling company level and at the subsidiary level.
i) Risk management principles
The risk management principles of the Group are as follows:
- All business activities take into account the balance of risks and profits within a predetermined risk trend.
- The controlling company shall present the Group Risk Management Model Standards and supervise their compliance,
and have responsibility and authority for group-level monitoring.
- Operate a risk-related decision-making system that enhances management's involvement.
- Organize and operate risk management organizations independent of the business sector.
- Operate a performance management system that clearly considers risks when making business decisions.
- Aim for preemptive and practical risk management functions.
- Share a cautious view to prepare for possible deterioration of the situation.
ii) Risk management organization
The basic policies and strategies for risk management of the Group are established by the Risk Management
Committee (collectively the "Group Risk Management Committee") within the controlling company's Board of
Directors. The Group's Chief Risk Management Officer (CRO) assists the Group Risk Management Committee and
consults the risk policies and strategies of the group and each subsidiary through the Group Risk Council, which
includes the Chief Risk Management Officer of each subsidiary. The subsidiary implements the risk policies and
strategies of the Group through each company's risk management committee, risk-related committee, and risk
management organization, and consistently establishes and implements the detailed risk policies and strategies of
the subsidiary. The risk management team of the controlling company assists the Group's chief risk management
officer for risk management and supervision.
Shinhan Financial Group has a hierarchical limit system to manage the risks of the Group to an appropriate level.
The Group Risk Management Committee sets the risk limits that can be assumed by the Group and its subsidiaries,
while the Risk Management Committee and the Committee of each subsidiary set and manage detailed risk limits
by risk, department, desk and product types.
53
4. Financial risk management (continued)
(a) Overview (continued)
ii) Risk management organization (continued)
① Group Risk Management Committee
The Group established the risk management system for the Group and each of its subsidiaries, and comprehensively
manages group risk-related matters such as establishing risk policies, limits, and approvals. The Committee consists
of directors of the Group.
The resolution of the Committee is as follows:
- Establish risk management basic policy in line with management strategy

- Determine the level of risk that can be assumed by the Group and each subsidiary
- Approve appropriate investment limit or loss allowance limit
- Enact and amend the Group Risk Management Regulations and the Group Risk Council Regulations
- Matters concerning risk management organization structure and division of duties
- Matters concerning the operation of the risk management system
- Matters concerning the establishment of various limits and approval of limits
- Make decisions on approval of the FSS's internal rating law for non-retail and retail credit rating systems
- Matters concerning risk disclosure policy
- Analysis of crisis situation, related capital management plan and financing plan
- Matters deemed necessary by the board of directors
- Materials required by external regulations such as the Financial Services Commission and other regulations and
guidelines
- Matters deemed necessary by the Chairman
The resolution of the Group Risk Management Committee is reported to the Board of Directors.
② Group Risk Management Council
In order to maintain the Group's risk policy and strategy consistently, the Group decides what is necessary to discuss
the risks of the Group and to carry out the policies set by the Group Risk Management Committee. The members
are chaired by the group's risk management officer and consist of the risk management officers of major subsidiaries.
iii) Group Risk Management System
① Management of the risk capital
Risk capital refers to the capital required to compensate for the potential loss (risk) if it is actually realized. Risk cap
ital management refers to the management of the risk assets considering its risk appetite, which is a datum point on t
he level of risk burden compared to available capital, so as to maintain the risk capital at an appropriate level. The G
roup and subsidiaries establish and operate a risk planning process to reflect the risk plan in advance when establishi
ng financial and business plans for risk capital management, and establish a risk limit management system to control
risk to an appropriate level.
54
(a) Overview (continued)
iii) Group Risk Management System (continued)
② Risk Monitoring
In order to proactively manage risks by periodically identifying risk factors that can affect the group's business
environment, the Group has established a multi-dimensional risk monitoring system. Each subsidiary is required to
report to the Group on key issues that affect risk management at the group level. The Group prepares weekly, monthly
and occasional monitoring reports to report to Group management including the CRO.
In addition, the Risk Dash Board is operated to derive abnormal symptoms through three-dimensional monitoring
of major portfolios, increased risks, and external environmental changes of assets for each subsidiary. If necessary,
the Group takes preemptive risk management to establish and implement countermeasures.
③ Risk Reviewing
When conducting new product∙new business and major policy changes, risk factors are reviewed by using a pre-
defined checklist to prevent indiscriminate promotion of business that is not easy to judge risk and to support rational
decision making. The subsidiary's risk management department conducts a preliminary review and post-monitoring
process on products, services, and projects to be pursued in the business division. In case of matters that are linked
or jointly promoted with other subsidiaries, the risk reviews are carried out after prior-consultation with the risk
management department of the Group.
④ Risk management
The Group maintains a group wide risk management system to detect the signals of any risk crisis preemptively and,
in the event of a crisis actually happening, to respond on a timely, efficient and flexible basis so as to ensure the
Group’s survival as a going concern. Each subsidiary maintains crisis planning for three levels of contingencies,
namely, ‘alert’, ‘imminent crisis’ and ‘crisis’ determination of which is made based on quantitative and qualitative
monitoring and consequence analysis, and upon the happening of any such contingency, is required to respond
according to a prescribed contingency plan. At the controlling company level, the Group maintains and installs crisis
detection and response system which is applied consistently group-wide, and upon the happening of any contingency
at two or more subsidiary level, the Group directly takes charge of the situation so that the Group manages it on a
concerted group wide basis.
55
(b) Credit risk
Credit risk is the risk of potential economic loss that may be caused if a customer or counterparty to a financial
instrument fails to meet its contractual obligations, and is the largest risk which the Group is facing. The Group’s
credit risk management encompasses all areas of credit that may result in potential economic loss, including not just
transactions that are recorded on balance sheets, but also off-balance-sheet transactions such as guarantees, loan
commitments and derivative transactions.
Shinhan Bank's basic policy on credit risk management is determined by the Risk Policy Committee. The Risk Policy
Committee consists of the chairman of the CRO, the Chief Credit Officer (CCO), the head of the business group, and
the head of the risk management department, and decides the credit risk management plan and the direction of the
loan policy for the entire bank. Apart from the Risk Policy Committee, the Credit Review Committee is established
to separate credit monitoring, such as large loans and limit approval, and is composed of chairman, the CCO, CRO
and the head of the group in charge of the credit-related business group, the head of the credit planning department,
and the senior examination team to enhance the credit quality of the loan and profitability of operation.
Shinhan Bank's credit risk management includes processes such as credit evaluation, credit monitoring, and credit
supervision, and credit risk measurement of counterparties and limit management processes and credit risk
measurements for portfolios. All loan customers of Shinhan Bank are evaluated and managed with credit ratings.
Retail customers are evaluated by summing up the information of personal information the bank's internal
information and external credit information, and the corporate customers are evaluated by considering financial and
non-financial items such as industrial risk, operating risk, and management risk. The evaluated credit rating is used
for credit approval, limit management, pricing, credit loss provisioning, etc., and is the basis for credit risk
management. The credit evaluation system is divided into an evaluation system for retail customers, a SOHO
evaluation system, and an evaluation system for corporate customers. It is subdivided and refined by each model to
reflect the Basel III requirements. The corporate credit decision is based on a collective decision-making system,
making objective and prudent decisions. In the case of a general credit of loans, the credit is approved based on the
consultation between branch's RM (Relationship Manager) and loan officers of each business division's headquarters.
In the case of a large or important credit, the credit is approved by the review council. In particular, the Credit
Deliberation Committee, the highest decision-making body of the loan, reviews for important loans such as large
loans. Credits for retail customers are monitored by an automated credit scoring systems (CSS) based on objective
statistical methods and bank credit policies.
The Bank operates a regular monitoring system for the regular management of individual loans. The loan officers
and RM evaluate the adequacy of the result of the loan review by automatically searching for anticipated insolvent
companies among business loan partners, and if necessary, the credit rating of the corporate is requested of an
adjustment. In accordance with these procedures, the corporate customers are classified as an early warning company,
an observation company, and a normal company, and then are managed differently according to the management
guidelines for each risk stage, thereby preventing the insolvency of the loan at an early stage. The financial analysis
support system affiliated with a professional credit rating agency supports credit screening and management, and the
credit planning department calculates and manages industrial grades, and analyzes and provides industry trends and
company information. In order to control the credit risk for the credit portfolio to an appropriate level, credit VaR
limits are set and managed for each business and business sector, and to prepare for the credit risk caused by biased
exposure to specific sectors, the Group sets and manages exposure limits for each sector by the party, industry,
country, etc.
56
(b) Credit risk (continued)
Shinhan Card's basic policy on credit risk is determined by the Risk Management Committee. The Risk Management
Committee consists of the Risk Management Officer (CRO) as the chairperson, and is composed of the heads of
each business division and supporting division, and the heads of related departments. Apart from the RMC, a credit
committee in charge of monitoring corporate credits and other important credits over a certain amount has been
established to separate credit policy decisions from credit monitoring.
Shinhan Card’s credit rating system is divided into ASS(Application Scoring System) and BSS(Behavior Scoring
System). Unless a customer fall under “rejections due to policy” (such circumstances include delinquency of other
credit card companies) and his/her credit rating is above a certain rate, an application of AS is approved. There is a
separate screening criterion for credit card customers, who has maintained its relationship with Shinhan Financial
Group for a long-term and has a good credit history. In addition, the elements of credit ratings are used as the basis
for setting limits when issuing cards. The BSS, which is recalculated monthly, predicts the delinquency probability of
cardholders, and utilizes it to monitor members and monitor portfolio risk.
i) Techniques, assumptions and input variables used to measure impairment
i-1) Determining significant increases in credit risk since initial recognition
At the end of each reporting period, the Group assesses whether the credit risk on a financial instrument has increased
significantly since initial recognition. When making the assessment, the Group uses the change in the risk of a default
occurring over the expected life of the financial instrument instead of the change in the amount of expected credit
losses.
To make the assessment, the Group compares the risk of a default occurring on the financial instrument as at the
reporting date with the risk of a default occurring on the financial instrument as at the date of initial recognition and
considers reasonable and supportable information, that is available without undue cost or effort, and is indicative of
significant increases in credit risk since initial recognition. Information includes the default experience data held by
the Group and analysis by an internal credit rating expert.
i-1-1) Measuring the risk of default
The Group assigns an internal credit risk rating to each individual exposure based on observable data and historical
experiences that have been found to have a reasonable correlation with the risk of default. The internal credit risk
rating is determined by considering both qualitative and quantitative factors that indicate the risk of default, which
may vary depending on the nature of the exposure and the type of borrower.
i-1-2) Measuring term structure of probability of default
Internal credit risk rating is the main variable inputs to determine the duration structure for the risk of default. The
Group accumulates information after analyzing the information regarding exposure to credit risk and default
information by the type of product and borrower and results of internal credit risk assessment. For some portfolios,
the Group uses information obtained from external credit rating agencies when performing these analyses.
The Group applies statistical techniques to estimate the probability of default for the remaining life of the exposure
from the accumulated data and to estimate changes in the estimated probability of default over time.
57
i) Techniques, assumptions and input variables used to measure impairment (continued)
i-1-3) Significant increases in credit risk
The Group uses the indicators defined as per portfolio to determine the significant increase in credit risk and such
indicators generally consist of changes in the risk of default estimated from changes in the internal credit risk rating,
qualitative factors, days of delinquency, and others. The method used to determine whether credit risk of financial
instruments has significantly increased after the initial recognitions is summarized as follows:
Corporate exposures Retail exposures Card exposures
Significant change in credit ratings Significant change in credit ratings Significant change in credit ratings
Continued past due more than 30 Continued past due more than 30 Continued past due more than 7
days days days(personal card)
Loan classification of Loan classification of Loan classification of
precautionary or below precautionary or below precautionary or below
Borrower with early warning Borrower with early warning Specific delinquent pool segment
signals signals
Negative net assets Specific pool segment
Adverse audit opinion or Collective loans for housing for
disclaimer of opinion which the constructors are
insolvent
Interest coverage ratio below 1 for Loans with identified indicators for
a consecutive period of three significant increases in other
years or negative cash flows credit risk
from operating activities for a
consecutive period of two years
Loans with identified indicators for
significant increases in other
credit risk
The Group assumes that the credit risk of the financial instrument has been increased significantly since initial
recognition if a specific exposure is past due more than 30 days (except, for a specific portfolio if it is past due more
than 7 days). The Group counts the number of days past due from the earliest date on which the Group fails to fully
receive the contractual payments from the borrower, and does not take into account the grace period granted to the
borrower.
The Group regularly reviews the criteria for determining if there have been significant increases in credit risk from
the following perspective:
- A significant increase in credit risk shall be identified prior to the occurrence of default.
- The criteria established to judge the significant increase in credit risk shall have a more predictive power than the
criteria for days of delinquency.
58
i-2) Modified financial assets
If the contractual cash flows on a financial asset have been modified through renegotiation and the financial asset is
not derecognized, the Group assesses whether there has been a significant increase in the credit risk of the financial
instrument by comparing the risk of a default occurring at initial recognition based on the original, unmodified
contractual terms and the risk of a default occurring at the reporting date based on the modified contractual terms.
The Group may adjust the contractual cash flows of loans to customers who are in financial difficulties in order to
manage the risk of default and enhance the collectability (hereinafter referred to as ‘debt restructuring’). These
adjustments generally involve extension of maturity, changes in interest payment schedule, and changes in other
contractual terms.
Debt restructuring is a qualitative indicator of a significant increase in credit risk and the Group recognizes lifetime
expected credit losses for the exposure expected to be the subject of such adjustments. If a borrower faithfully makes
payments of contractual cash flows that are modified in accordance with the debt restructuring or if the borrower's
internal credit rating has recovered to the level prior to the recognition of the lifetime expected credit losses, the
Group recognizes the 12-month expected credit losses for that exposure again.
i-3) Risk of default
The Group considers a financial asset to be in default if it meets one or more of the following conditions:
- If a borrower is overdue 90 days or more from the contractual payment date,

- If the Group judges that it is not possible to recover principal and interest without enforcing the collateral on a
financial asset
The Group uses the following indicators when determining whether a borrower is in default:
- Qualitative factors (e.g. breach of contractual terms),

- Quantitative factors (e.g. if the same borrower does not perform more than one payment obligations to the Group,
the number of days past due per payment obligation. However, in the case of a specific portfolio, the Group uses
the number of days past due for each financial instrument),
- Internal observation data and external data
The definition of default applied by the Group generally conforms to the definition of default defined for regulatory
capital management purposes; however, depending on the situations, the information used to determine whether a
default has occurred and the extent thereof may vary.
59
i-4) Reflection of forward-looking information
The Group reflects future forward-looking information presented by a group of internal experts based on various
information when measuring expected credit losses. The Group utilizes economic forecasts disclosed by domestic
and foreign research institutes, governments, and public institutions to predict forward-looking information.
The Group reflects future macroeconomic conditions anticipated from a neutral standpoint that is free from bias in
measuring expected credit losses. Expected credit losses in this respect reflect conditions that are most likely to
occur and are based on the same assumptions that the Group used in its business plan and management strategy.
The Group analyzed the data experienced in the past, derived correlations between major macroeconomic variables
and credit risks required for predicting credit risk and credit loss for each portfolio, and then reflected future forecast
information through regression estimation. To reflect the COVID-19 economic situation, the Group has reviewed
the 3 scenarios of upside, central and downside to reflect the final forward-looking information. For the years ended
December 31, 2022 and 2021, macroeconomic variables used by the Group are as follows for each scenario.
<December, 31, 2022>

① Upside scenario
Correlation 2023(*2),(*3)
Major variables(*1) between 2022.4Q(*2),(*3)
1Q 2Q 3Q 4Q
credit risks
GDP growth
(-)
rate(YoY %) 1.4 1.6 1.7 2.5 3.9
Private consumption
(-)
index(YoY %) 3.6 4.9 2.8 2.1 3.6
Facility investment
(-)
growth rate(YoY %) 6.6 1.5 2.0 (4.2) 5.3
Consumer price index
(+)
growth rate(%) 5.3 5.0 4.0 3.4 3.0
Balance on current
account(100 million (-)
dollars) 15.0 30.0 40.0 80.0 100.0
Government bond 3y
-
yields(%) 3.9 3.7 4.0 4.0 4.0
② Central scenario
1Q 2Q 3Q 4Q
credit risks
GDP growth
(-) 1.4 0.4 0.5 1.2 3.7
rate(YoY %)
Private consumption
(-) 3.6 3.8 1.5 0.6 2.8
index(YoY %)
Facility investment
(-) 6.6 0.8 1.0 (5.3) 4.6
growth rate(YoY %)
(+) 5.3 5.3 4.4 3.8 3.4
growth rate(%)
Balance on current
account(100 million (-) 15.0 20.0 30.0 60.0 80.0
dollars)
Government bond 3y
- 3.9 4.0 4.2 4.2 4.2
yields(%)
60
i-4) Reflection of forward-looking information (continued)
③ Downside scenario
1Q 2Q 3Q 4Q
credit risks
GDP growth
rate(YoY %)
(-) 1.4 (0.4) (0.5) (0.1) 2.9
Private consumption
index(YoY %)
(-) 3.6 2.9 0.3 (0.8) 1.9
Facility investment
growth rate(YoY %)
(-) 6.6 0.2 0.3 (6.4) 3.4
growth rate(%)
(+) 5.3 5.7 4.8 4.4 3.8
Balance on current
dollars) 15.0 10.0 20.0 40.0 60.0
Government bond 3y
yields(%)
- 3.9 4.3 4.6 4.6 4.6
④ Worst scenario
Correlation
Major variables(*1) Economic Crisis for 1 year(*4)
between credit risks
GDP growth rate(YoY %) (-) (5.1)
Private consumption index(YoY %) (-) (11.9)
Facility investment growth rate(YoY %) (-) (38.6)
Consumer price index growth rate(%) (+) 7.5
Balance on current account(100 million
dollars)
(-) 401.1
Government bond 3y yields(%) - 4.4
(*1) As a result of examining the correlation between each variable, Shinhan Bank applied the GDP growth rate and
private consumption index increase rate, etc. as the major variables to reflect the final forward-looking information,
while, Shinhan Card applied the GDP growth rate, facility investment change rate, and current account balance, etc.
as the major variables. In addition to the table above, the Group has selected unemployment rate and KOSPI forecasts.
(*2) Considering the default forecast period, the Group reflected the future economic outlook.
(*3) The macroeconomic outlook figures are estimated by the Group for the purpose of calculating expected credit
losses based on information from domestic and foreign research institutes. Therefore, it could be different from other
institutions' estimates.
(*4) Shinhan Bank and Jeju Bank reviewed and reflected the Worst scenario (during the foreign exchange crisis) in
addition to the three scenarios of Upside, Central and Downside.
61
<December, 31, 2021>

① Upside scenario
1Q 2Q 3Q 4Q
credit risks
GDP growth
(-)
rate(YoY %) 4.1 3.0 3.1 3.8 3.7
Private consumption
(-)
index(YoY %) 6.3 5.1 2.5 3.7 3.8
Facility investment
(-)
growth rate(YoY %) 4.1 0.5 1.2 5.0 5.1
(-)
growth rate(%) 3.6 2.6 2.4 2.0 2.0
Balance on current
dollars) 202.0 230.0 200.0 220.0 230.0
Government bond 3y
-
yields(%) 1.87 1.90 1.90 2.00 2.00
② Central scenario
1Q 2Q 3Q 4Q
credit risks
GDP growth
(-) 4.1 2.3 2.4 3.0 3.4
rate(YoY %)
Private consumption
(-) 6.3 4.4 1.8 2.9 3.5
index(YoY %)
Facility investment
(-) 4.1 0.2 0.8 4.5 4.9
growth rate(YoY %)
(-) 3.6 2.7 2.5 2.2 2.0
growth rate(%)
Balance on current
account(100 million (-) 202.0 220.0 180.0 200.0 220.0
dollars)
Government bond 3y
- 1.87 1.80 1.80 1.90 1.90
yields(%)
62
③ Downside scenario
1Q 2Q 3Q 4Q
credit risks
GDP growth
rate(YoY %)
(-) 4.1 1.3 1.3 1.8 3.1
Private consumption
index(YoY %)
(-) 6.3 3.4 0.7 1.8 3.1
Facility investment
growth rate(YoY %)
(-) 4.1 (0.5) 0.3 4.3 4.5
growth rate(%)
(-) 3.6 3.2 3.0 3.0 2.8
Balance on current
dollars) 202.0 200.0 170.0 180.0 200.0
Government bond 3y
yields(%)
- 1.87 2.00 2.00 2.20 2.40
(*1) Shinhan Bank applied the GDP growth rate and private consumption index as the major variables. In addition,
Shinhan Card applied the GDP growth rate, facility investment growth rate, consumer price index growth rate, and
balance on current account as the major variables. In addition to the table above, the Group has selected additional
forecasts for the KOSPI.
(*2) Considering the default forecast period, the Group reflected the future economic outlook.
(*3) The macroeconomic outlook figures are estimated by the Group for the purpose of calculating expected credit
losses based on information from domestic and foreign research institutes. Therefore, it could be different from other
institutions' estimates.
The predicted correlations between the macroeconomic variables and the risk of default, used by the Group, are
derived based on long-term data over the past ten years.
The recent historical default rate is an important reference when estimating the default rate in consideration of the
future economic outlook. Economic indicators have worsened since 2020 due to the economic contraction caused by
the COVID-19. However, the historical default rate of the Group's has remained stable because of various
government support in response to the COVID-19. The Group manages the credit risk through classifying borrowers
in moratorium of interest payments and moratorium of repayment that is one of the financial relief programs into
Stage2 to reflect the impact of potential insolvency.
The Group has considered multiple economic scenarios in applying forward-looking information to measure the
expected credit losses. Assuming a 100% weighting of Upside, Central, and Downside scenarios, the sensitivity to
the Group's provision for expected credit loss is not significant.
63
i-5) Measurement of expected credit losses
Key variables used in measuring expected credit losses are as follows:
- Probability of default (“PD”)

- Loss given default (“LGD”)
- Exposure at default (“EAD”)
These variables have been estimated from historical experience data by using the statistical techniques developed
internally by the Group and have been adjusted to reflect forward-looking information.
Estimates of PD over a specified period are estimated by reflecting characteristics of counterparties and their
exposure, based on a statistical model at a specific point of time. The Group uses its own information to develop a
statistical credit assessment model used for the estimation, and additional information observed in the market is
considered for some portfolios such as a group of large corporates. When a counterparty or exposure is concentrated
in specific grades, the method of measuring PD for those grades would be adjusted, and the PD by grade is estimated
by considering contract expiration of the exposure.
LGD refers to the expected loss if a borrower defaults. The Group calculates LGD based on the experience recovery
rate measured from past default exposures. The model for measuring LGD is developed to reflect type of collateral,
seniority of collateral, type of borrower, and cost of recovery. In particular, LGD for retail loan products uses loan
to value (LTV) as a key variable. The recovery rate reflected in the LGD calculation is based on the present value of
recovery amount, discounted at the effective interest rate.
EAD refers to the expected exposure at the time of default. The Group derives EAD reflecting a rate at which the
current exposure is expected to be used additionally up to the point of default within the contractual limit. EAD of
financial assets is equal to the total carrying value of the asset, and EAD of loan commitments or financial guarantee
contracts is calculated as the sum of the amount expected to be used in the future.
In measuring expected credit losses on financial assets, the Group uses the contractual maturity as the period subject
to expected credit loss measurement. The contractual maturity is computed taking into account the extension right
held by the borrower.
Risk factors of PD, LGD and EAD are collectively estimated according to the following criteria:
- Type of products
- Internal credit risk rating
- Type of collateral
- Loan to value (“LTV”)
- Industry that the borrower belongs to
- Location of the borrower or collateral
- Days of delinquency
The criteria classifying groups is periodically reviewed to maintain homogeneity of the group and adjusted if
necessary. The Group uses external benchmark information to supplement internal information for a particular
portfolio that did not have sufficient internal data accumulated from the past experience.
64
(In millions of won)
i-6) Write-off of financial assets
The Group writes off a portion of or entire loan or debt security that is not expected to receive its principal and
interest. In general, the Group conducts write-off when it is deemed that the borrower has no sufficient resources or
income to repay the principal and interest. Such determination on write-off is carried out in accordance with the
internal rules of the Group and is carried out with the approval of an external institution, if necessary. Apart from
write-off, the Group may continue to exercise its right of collection under its own recovery policy even after the
write-off of financial assets.
ii) Maximum exposure to credit risk
Exposure to credit risk is the exposure related to due from banks, loans, investments in debt securities, derivative
transactions, off-balance sheet accounts such as loan commitment. The exposures of due from banks and loans are
classified into government, bank, corporation or retail based on the exposure classification criteria of BASEL III
credit risk weights, and the net carrying value, excluding provisions, is presented as the maximum amount that can
be exposed by credit risk.
The Group’s maximum exposure to credit risk without taking into account of any collateral held or other credit
enhancements as of December 31, 2022 and 2021 is as follows:
December 31, December 31,

2022 2021
Due from banks and loans at amortized cost(*1),(*3):
Banks W 20,137,657 14,166,508
Retail 183,539,365 186,358,002
Government/Public sector/Central bank 15,481,390 15,251,465
Corporations 192,985,692 172,527,573
Card receivable 27,375,162 25,065,621
439,519,266 413,369,169
Due from banks and loans at fair value through profit or loss(*3):
Banks 135,214 34,262
Corporations 2,280,081 1,683,344
2,415,295 1,717,606
Securities at fair value through profit or loss 51,604,186 58,310,838

Securities at fair value through other comprehensive income 62,093,908 63,806,919
Securities at amortized cost(*1) 57,971,493 49,930,076
Derivative assets 6,461,796 3,799,189
Other financial assets(*1),(*2) 21,896,490 23,238,932
Guarantee contracts 18,226,546 16,745,707
Loan commitments and other credit liabilities 205,255,277 193,853,866
W 865,444,257 824,772,302
(*1) The maximum exposure amounts for due from banks, loans, securities at amortized cost and other financial
assets at amortized cost are recorded as net of allowances.
(*2) Other financial assets mainly comprise of accounts receivable, accrued income, deposits, domestic exchange
settlement debit and suspense payments.
(*3) Classified as similar credit risk group based on calculation of the BIS ratio under new Basel Capital Accord
(Basel III).
65
iii) The maximum amount of exposure to credit risk by type of collateral as of December, 31, 2022 and 2021 is as
follows:
December 31, 2022

12 months Life time expected credit loss
Classification
Expected credit loss Not impaired Impaired Total
Guarantee W 61,643,599 8,583,456 275,460 70,502,515
Deposits and
Savings 2,814,723 287,890 4,348 3,106,961
Property and
equipment 1,546,908 404,440 11,523 1,962,871
Real estate 136,154,296 17,439,371 317,213 153,910,880
Securities 2,325,294 243,734 159,040 2,728,068
Others 5,104,440 - 4,564 5,109,004
Total W 209,589,260 26,958,891 772,148 237,320,299
December 31, 2021

12 months Life time expected credit loss
Classification
Expected credit loss Not impaired Impaired Total
Guarantee W 61,890,908 8,354,723 214,589 70,460,220
Deposits and
Savings 2,166,075 285,965 2,446 2,454,486
Property and
equipment 1,560,567 416,545 20,162 1,997,274
Real estate 127,505,563 14,318,098 256,972 142,080,633
Securities 1,906,005 128,293 7 2,034,305
Others 5,035,546 - 5,495 5,041,041
Total W 200,064,664 23,503,624 499,671 224,067,959
66
iv) Impairment information by credit risk of financial assets
Details of impaired financial assets due to credit risk as of December 31, 2022 and 2021 are as follows:
December 31, 2022

12-month expected credit loss Life time expected credit loss Mitigation of credit
risk
Grade 1 Grade 2 Grade 1 Grade 2 Impaired Total Allowances Net due to collateral
Due from banks and loans at
amortized cost:
Banks W 15,883,274 4,166,423 111,593 177 - 20,161,467 (23,810) 20,137,657 42,418
Retail 165,886,703 6,846,625 8,544,051 2,340,393 709,935 184,327,707 (788,342) 183,539,365 129,278,429
Government/Public sector/
Central bank 14,401,434 1,071,236 15,755 557 - 15,488,982 (7,592) 15,481,390 9,000
Corporations 116,264,866 47,287,903 12,582,994 17,780,729 880,857 194,797,349 (1,811,657) 192,985,692 104,854,134
Card receivable 20,858,888 2,727,744 1,671,259 2,662,353 493,480 28,413,724 (1,038,562) 27,375,162 12,589
333,295,165 62,099,931 22,925,652 22,784,209 2,084,272 443,189,229 (3,669,963) 439,519,266 234,196,570
Securities at fair value through
other comprehensive income(*) 52,920,399 9,106,311 - 67,198 - 62,093,908 - 62,093,908 -
Securities at amortized cost 56,333,659 1,643,689 - 10,516 - 57,987,864 (16,371) 57,971,493 -
W 442,549,223 72,849,931 22,925,652 22,861,923 2,084,272 563,271,001 (3,686,334) 559,584,667 234,196,570
(*) Credit loss allowance recognized as other comprehensive income of securities at fair value through other comprehensive income amounted to W 33,108 million as of December
31, 2022.
67
iv)Impairment information by credit risk of financial assets (continued)
Details of impaired financial assets due to credit risk as of December 31, 2022 and 2021 are as follows (continued):
December 31, 2021

12-month expected credit loss Life time expected credit loss Mitigation of credit
risk
Grade 1 Grade 2 Grade 1 Grade 2 Impaired Total Allowances Net due to collateral
Due from banks and loans at
amortized cost:
Banks W 10,793,973 3,278,144 112,254 434 - 14,184,805 (18,297) 14,166,508 133,618
Retail 169,313,467 7,015,361 7,900,192 2,127,173 581,534 186,937,727 (579,725) 186,358,002 126,988,030
Government/Public sector/
Central bank 14,531,532 710,527 17,433 257 - 15,259,749 (8,284) 15,251,465 9,000
Corporations 101,866,101 44,060,819 10,743,965 16,702,928 853,977 174,227,790 (1,700,217) 172,527,573 93,682,859
Card receivable 18,793,517 2,541,833 1,829,837 2,350,634 428,068 25,943,889 (878,268) 25,065,621 8,774
315,298,590 57,606,684 20,603,681 21,181,426 1,863,579 416,553,960 (3,184,791) 413,369,169 220,822,281
other comprehensive income(*) 56,176,008 7,478,125 - 152,786 - 63,806,919 - 63,806,919 -
Securities at amortized cost 48,305,398 1,605,335 - 36,290 - 49,947,023 (16,947) 49,930,076 -
W 419,779,996 66,690,144 20,603,681 21,370,502 1,863,579 530,307,902 (3,201,738) 527,106,164 220,822,281
(*) Credit loss allowance recognized as other comprehensive income of securities at fair value through other comprehensive income amounted to W 37,486 million as of December
31, 2021.
68
v) Credit risk exposures per credit grade of off-balance items
Credit risk exposures per credit grade of off-balance items as of December 31, 2022 and 2021 are as follows:
December 31, 2022

Grade 1 Grade 2 Impaired Total
Guarantee contracts:
12-month expected credit loss W 14,262,990 3,314,584 - 17,577,574
Life time expected credit loss 386,159 164,400 - 550,559
Impaired - - 98,413 98,413
14,649,149 3,478,984 98,413 18,226,546
Loan commitment and
other credit line
12-month expected credit loss 178,532,138 17,418,916 - 195,951,054
Life time expected credit loss 6,287,658 3,011,715 - 9,299,373
Impaired - - 4,850 4,850
184,819,796 20,430,631 4,850 205,255,277
W 199,468,945 23,909,615 103,263 223,481,823
December 31, 2021

Grade 1 Grade 2 Impaired Total
Guarantee contracts:
12-month expected credit loss W 12,671,376 3,434,615 - 16,105,991
Life time expected credit loss 342,224 205,179 - 547,403
Impaired - - 92,313 92,313
13,013,600 3,639,794 92,313 16,745,707
Loan commitment and
other credit line
12-month expected credit loss 160,307,100 23,370,613 - 183,677,713
Life time expected credit loss 7,406,324 2,759,057 - 10,165,381
Impaired - - 10,772 10,772
167,713,424 26,129,670 10,772 193,853,866
W 180,727,024 29,769,464 103,085 210,599,573
vi) Credit qualities are classified based on the internal credit rating as follows:
Type of Borrower Grade 1 Grade 2

Individuals Probability of default below 2.25% for Probability of default 2.25% or above
each pool for each pool
Government/Public OECD sovereign credit rating of 6 or OECD sovereign credit rating of below
agency/Central bank above 6
Banks and Corporations Internal credit rating of BBB+ or Internal credit rating of below BBB+
(Including credit card bond) above
Card receivables Behavior scoring system of 7 grade or Behavior scoring system of below 7
(Individuals) above grade
69
vii) Credit risk exposures per credit quality of derivative assets
Credit quality of derivative assets as of December 31, 2022 and 2021 are as follows:

Grade 1 W 5,942,661 3,201,912
Grade 2 519,135 597,277
W 6,461,796 3,799,189
(*) Credit quality of derivative assets is classified based on the internal credit ratings.
70
viii) Concentration by geographic location

An analysis of concentration by geographic location for financial instrument, net of allowance, as of December 31, 2022 and 2021 are as follows:
December 31, 2022
Classification(*) Korea USA UK Japan Germany Vietnam China Other Total
Due from banks and loans at amortized
cost
Banks W 5,956,111 2,259,951 765,128 879,022 675,370 1,793,330 3,861,678 3,947,067 20,137,657
Retail 171,780,848 403,445 8,199 4,357,325 3,716 3,183,424 2,030,305 1,772,103 183,539,365
Government/Public
sector/Central bank 11,251,561 915,306 - 1,404,163 426,747 345,843 441,551 696,219 15,481,390
Corporations 170,961,934 3,687,701 451,254 5,152,628 105,205 3,228,817 2,694,661 6,703,492 192,985,692
Card receivable 27,065,988 11,017 428 2,291 286 236,095 38,416 20,641 27,375,162
387,016,442 7,277,420 1,225,009 11,795,429 1,211,324 8,787,509 9,066,611 13,139,522 439,519,266
Deposits and loans at FVTPL

Banks 109,098 26,116 - - - - - - 135,214
Corporations 1,510,976 285,107 82,172 17,829 - - - 383,997 2,280,081
1,620,074 311,223 82,172 17,829 - - - 383,997 2,415,295
Securities measured at FVTPL 48,322,318 1,602,598 252,390 58,255 23,610 31,952 16,469 1,296,594 51,604,186
Securities at FVOCI 55,849,223 3,104,384 193,598 348,240 34,065 92,940 688,085 1,783,373 62,093,908
Securities at amortized cost 54,843,005 1,020,227 - 214,653 - 726,476 110,884 1,056,248 57,971,493
547,651,062 13,315,852 1,753,169 12,434,406 1,268,999 9,638,877 9,882,049 17,659,734 613,604,148
Off-balance accounts
Guarantees 16,426,498 118,951 23,481 47,805 44,203 329,904 1,015,543 220,161 18,226,546
Loan commitments and
other liabilities related to credit 194,236,727 1,312,830 317,335 550,116 42,230 1,816,773 2,548,483 4,430,783 205,255,277
W 210,663,225 1,431,781 340,816 597,921 86,433 2,146,677 3,564,026 4,650,944 223,481,823
(*) The following accounts are the net carrying value less provision for doubtful accounts.
71
viii) Concentration by geographic location (continued)

An analysis of concentration by geographic location for financial instrument, net of allowance, as of December 31, 2022 and 2021 are as follows (continued):
December 31, 2021
Classification(*) Korea USA UK Japan Germany Vietnam China Other Total
Due from banks and loans at amortized
cost
Banks W 4,310,888 1,525,158 235,591 450,689 530,688 1,676,080 2,677,445 2,759,969 14,166,508
Retail 175,777,754 392,882 7,683 4,338,281 3,111 2,412,670 1,944,105 1,481,516 186,358,002
Government/Public
sector/Central bank 11,807,591 796,405 - 1,279,012 217,773 248,301 462,308 440,075 15,251,465
Corporations 151,625,249 3,684,068 254,051 4,375,807 94,186 3,012,133 2,947,746 6,534,333 172,527,573
Card receivable 24,832,367 10,435 462 2,033 233 170,929 32,281 16,881 25,065,621
368,353,849 6,408,948 497,787 10,445,822 845,991 7,520,113 8,063,885 11,232,774 413,369,169
Deposits and loans at FVTPL

Banks - 34,262 - - - - - - 34,262
Corporations 1,113,229 282,513 - 19,274 - - - 268,328 1,683,344
1,113,229 316,775 - 19,274 - - - 268,328 1,717,606
Securities measured at FVTPL 53,942,627 2,359,478 255,023 91,766 19,048 27,613 76,107 1,539,176 58,310,838
Securities at FVOCI 59,353,250 1,871,526 164,340 250,768 52,199 120,884 679,527 1,314,425 63,806,919
Securities at amortized cost 46,896,258 777,546 - 244,149 - 902,377 80,041 1,029,705 49,930,076
529,659,213 11,734,273 917,150 11,051,779 917,238 8,570,987 8,899,560 15,384,408 587,134,608
Guarantees 15,451,432 156,225 4,690 28,725 13,374 382,307 617,574 91,380 16,745,707
other liabilities related to credit 182,701,367 686,381 260,036 771,183 87,080 2,772,750 2,157,388 4,417,681 193,853,866
W 198,152,799 842,606 264,726 799,908 100,454 3,155,057 2,774,962 4,509,061 210,599,573
(*) The following accounts are the net carrying value less provision for doubtful accounts.
72
ix) Concentration by industry sector
An analysis of concentration by industry sector of financial instrument, net of allowance, as of and December 31, 2022 and 2021 is as follows:
December 31, 2022
Finance and Manu Retail and Real estate Construction Lodging and Retail
Classification(*)
insurance -facturing wholesale and business service Restaurant Other customers Total
Due from banks and loans
at amortized cost:
Banks W 19,486,003 - - - 29,979 - 621,675 - 20,137,657
Retail - - - - - - - 183,539,365 183,539,365
Government/Public
sector/Central bank 15,422,776 - - 1,296 - - 57,318 - 15,481,390
Corporations 16,579,826 57,861,407 22,984,739 45,088,702 4,470,587 6,619,476 39,380,955 - 192,985,692
Card receivable 47,835 276,473 266,220 49,060 51,113 31,333 1,084,143 25,568,985 27,375,162
51,536,440 58,137,880 23,250,959 45,139,058 4,551,679 6,650,809 41,144,091 209,108,350 439,519,266
at FVTPL
Banks 26,115 - - 69,533 - - 39,566 - 135,214
Corporations 1,287,647 615,693 94,393 154,329 68,460 - 59,559 - 2,280,081
1,313,762 615,693 94,393 223,862 68,460 - 99,125 - 2,415,295
Securities measured at
FVTPL 29,194,048 1,962,916 1,018,407 1,039,955 247,657 89,394 18,051,809 - 51,604,186
Securities at FVOCI 25,383,957 2,917,059 602,196 780,751 883,115 38,704 31,488,126 - 62,093,908
Securities at amortized
cost 14,169,681 9,931 - 1,090,606 1,357,949 - 41,343,326 - 57,971,493
121,597,888 63,643,479 24,965,955 48,274,232 7,108,860 6,778,907 132,126,477 209,108,350 613,604,148
Guarantees 2,444,168 8,998,689 3,403,653 115,912 224,439 112,755 2,576,924 350,006 18,226,546
other liabilities related
to credit 17,871,585 28,414,045 10,535,492 3,918,854 2,242,493 462,976 15,669,405 126,140,427 205,255,277
W 20,315,753 37,412,734 13,939,145 4,034,766 2,466,932 575,731 18,246,329 126,490,433 223,481,823
(*) The composition details by industry are net book value less allowances.
73
ix) Concentration by industry sector (continued)
An analysis of concentration by industry sector of financial instrument, net of allowance, as of and December 31, 2022 and 2021 is as follows:
December 31, 2021
Finance and Manu Retail and Real estate Construction Lodging and Retail
Classification(*)
insurance -facturing wholesale and business service Restaurant Other customers Total
at amortized cost:
Banks W 13,447,829 - - - - - 718,679 - 14,166,508
Retail - - - - - - - 186,358,002 186,358,002
Government/Public
sector/Central bank 15,216,403 - - 1,797 - - 33,265 - 15,251,465
Corporations 13,384,083 53,134,572 21,167,564 41,106,836 3,727,338 6,544,166 33,463,014 - 172,527,573
Card receivable 51,123 252,973 228,900 46,896 45,568 29,713 1,899,301 22,511,147 25,065,621
42,099,438 53,387,545 21,396,464 41,155,529 3,772,906 6,573,879 36,114,259 208,869,149 413,369,169
at FVTPL
Banks 34,262 - - - - - - - 34,262
Corporations 986,736 492,598 15,107 78,753 22,537 2,637 84,976 - 1,683,344
1,020,998 492,598 15,107 78,753 22,537 2,637 84,976 - 1,717,606
Securities measured at
FVTPL 33,769,892 3,248,846 1,169,038 773,687 299,972 152,341 18,897,062 - 58,310,838
Securities at FVOCI 27,034,695 3,529,756 523,631 775,967 1,144,998 30,928 30,766,944 - 63,806,919
Securities at amortized
cost 10,309,318 - - 1,074,393 1,249,070 - 37,297,295 - 49,930,076
114,234,341 60,658,745 23,104,240 43,858,329 6,489,483 6,759,785 123,160,536 208,869,149 587,134,608
Guarantees 2,308,627 8,124,340 3,469,001 350,591 207,691 151,653 2,132,267 1,537 16,745,707
other liabilities related
to credit 15,445,541 25,389,003 8,908,201 3,676,457 2,213,871 499,633 20,404,848 117,316,312 193,853,866
W 17,754,168 33,513,343 12,377,202 4,027,048 2,421,562 651,286 22,537,115 117,317,849 210,599,573
(*) The composition details by industry are net book value less allowances.
74
(c) Market risk
i) Market risk management from trading positions
i-1) Concept of Market risk
Market risk is defined as the risk of loss of trading account position of financial institutions due to changes on market
price, such as interest rates, exchange rates and stock prices, etc. and is divided into general market risks and
individual risks. A general market risk refers to a loss from price variability caused by events affecting the market as
a whole, such as interest rates, exchange rates and stock prices; and an individual risk refers to a loss from price
variability related to individual events of securities issuer, such as bonds and stocks.
i-2) Market Risk Management Method
The basic principle of market risk management in the trading sector is to maintain the maximum possible loss due to
market risk within a certain level. To this end, the Group sets and operates VaR limits, investment limits, position
limits, sensitivity limits, and loss limits from the portfolio to individual desks. These limits are managed daily by the
department in charge of risk management, independent from the operating department.
Trading positions refer to securities, foreign exchange positions, and derivative financial instruments held for the
purpose of obtaining short-term trading gains. As a method of measuring market risk, VaR (Value at Risk) is typical,
and it is a statistical measurement of the potential maximum loss that can occur due to changes in market conditions.
VaR calculates the standard method market risk using the Group Market Risk Measurement System (TRMS), and
Shinhan Bank and Shinhan Financial Investment use their own internal model market risk calculation system.
Stress tests are conducted to supplement risk measurement by statistical methods and to manage losses that may arise
from rapid changes in the economic environment.
Shinhan Bank measures the market risk of linear products, such as stocks and bonds, as well as non-linear products,
such as options by applying historical simulation method of 99% confidence level-based VaR. Trading position data
is automatically interfaced into management system, and the system conducts VaR measurement and manages the
limit. In addition, the Bank sets loss limit, sensitivity limit, investment limit, stress limit, etc. for Trading Department
and desks, and monitors daily.
Shinhan Securities measures daily market risk by applying historical simulation VaR method of 99.9% confidence
level-based VaR. Historical simulation VaR method does not require assumption on a particular distribution since
the method derives scenarios directly from historical market data, and measures non-linear products, such as options,
in details. In addition to the VaR limit, the Shinhan Securities sets and manages issuance and transaction limit, and
stop-loss limit for each department.
75
(c) Market risk (continued)
i) Market risk management from trading positions (continued)
i-2) Market Risk Management Method (continued)
An analysis of the Group’s requisite capital in light of the market risk for trading positions as of and for the years
ended December 31, 2022 and 2021 based on the standard guidelines for risk management promulgated by the
Financial Supervisory Service, is as follows:
December 31, 2022

Average Maximum Minimum December 31
Interest rate risk W 485,531 526,936 447,425 447,425
Stock price risk 217,845 242,341 196,879 242,341
Foreign exchange risk 334,543 374,984 293,437 344,415
Commodity risk 11,624 14,309 9,213 9,213
Option volatility risk 64,208 71,811 43,374 70,770
W 1,113,751 1,230,381 990,328 1,114,164
December 31, 2021

Stock price risk 209,101 231,137 179,415 219,900
Commodity risk 8,544 9,571 8,043 8,043
W 1,095,671 1,197,521 991,581 1,123,399
i-3) Shinhan Bank

The analyses of the ten-day 99% confidence level-based VaR for managing market risk for trading positions of
Shinhan Bank as of and for the years ended December 31, 2022 and 2021 are as follows:
December 31, 2022

Stock price risk 20,303 24,879 13,443 21,659
Foreign exchange risk(*) 191,013 262,319 161,760 252,453
Option volatility risk 84 211 25 110
Commodity risk 13 193 - 27
Portfolio diversification
effect (33,760) (77,335) (10,872) (62,957)
W 222,372 274,895 188,678 265,069
December 31, 2021

Stock price risk 11,583 21,340 3,850 19,618
Foreign exchange risk(*) 159,165 185,514 136,936 161,978
Commodity risk 11 151 - 8
effect (25,023) (52,611) (13,207) (17,470)
W 174,647 210,535 145,145 192,224
(*) Both trading and non-trading accounts are included.
76
i-4) Shinhan Card
The analyses of Shinhan Card’s requisite capital in light of the market risk for trading positions as of and for the
years ended December 31 2022 and 2021, based on the standard guidelines for risk management promulgated by the
Financial Supervisory Service, are as follows:
December 31, 2022

Interest rate risk(*) W 1,784 2,401 1,650 1,801
December 31, 2021

Interest rate risk(*) W 1,996 2,350 1,700 1,700
(*) Foreign subsidiaries are excluded from the calculation.
i-5) Shinhan Securities
The analyses of the ten-day 99.9% confidence level-based VaR for managing market risk for trading positions of
Shinhan Securities as of and for the years ended December 31, 2022 and 2021 are as follows:
December 31, 2022

Stock price risk 36,100 63,956 14,507 25,762
effect (64,641) (147,826) (9,066) (74,885)
W 103,192 127,669 76,822 97,037
December 31, 2021

Stock price risk 31,668 62,315 15,856 33,295
effect (47,759) (104,149) (7,380) (58,241)
W 78,687 133,850 49,903 110,444
77
i-6) Shinhan Life Insurance
The analyses of the ten-day 99.9% confidence level-based VaR for managing market risk for trading positions of
Shinhan Life Insurance as of and for the years ended December 31, 2022 and 2021 are as follows:
December 31, 2022

Stock price risk 9,441 11,034 6,206 9,505
Foreign exchange risk 13,403 30,111 818 23,286
W 26,435 48,394 8,288 36,700
December 31, 2021

Interest rate risk W 4,161 9,262 457 1,259
Stock price risk 8,938 15,009 1,909 6,303
Foreign exchange risk 7,680 13,746 481 11,404
Option volatility risk 1,252 2,828 26 47
W 22,031 40,845 2,873 19,013
78
ii) Interest rate risk management from non-trading positions
ii-1) Principle
Interest rate risk refers to the possibility of a decrease in net interest income or in net asset value that occurs when
interest rates fluctuate unfavorably from the Group's financial position. The Group manages changes in net interest
income or net asset value that occur due to changes in interest rates by early predicting the factors of interest rate risk
fluctuation related to the Group's net interest income and net asset value through the interest rate risk management.
ii-2) Managements
Shinhan Financial Group's major financial subsidiaries manage interest rate risks independently by the risk
management organization and the treasury department, and have internal regulations on interest rate risk
management strategies, procedures, organization, measurement, and major assumptions.
One of the key indicators of managing interest rate risk is the Earnings at Risk (EaR) from an earning perspective
and the Value at Risk (VaR) from an economic value perspective. Interest rate VaR represents the maximum
anticipated loss in a net present value calculation, whereas interest rate EaR represents the maximum anticipated
loss in a net interest income calculation for the immediately following one-year period, in each case, as a result of
negative movements in interest rates.
The precision of risk management system differs by each subsidiary. Interest rate VaR and interest rate EaR are
measured by internal method or IRRBB (Interest Rate Risk In The Banking Book), and interest rate risk limits are
set and monitored based on the interest rate VaR. In accordance with the amendments in Regulations for Supervision
of Financial Holding Companies, the Group measures the interest rate risk using the Basel III based IRRBB, which
measures the interest rate risk more precisely than the existing BIS standard framework by segmenting maturities of
interest rates, reflecting customer behavior models and diversifying interest rate shocks. The interest rate VaR
scenario based IRRBB measures ① parallel up shock ② parallel down shock ③ steepener shock ④ flattener shock
⑤ short rate up shock ⑥ short rate down shock. By the parallel up shock and parallel down shock, the interest rate
EaR scenario measures the scenario value with the largest loss as interest rate risk. Under the existing BIS standard
framework, ± 200bp parallel shock scenario is applied to all currency. However, as the shock width is set differently
by currency and period, interest rate risk is measured significantly by the IRRBB (e.g. (KRW) Parallel ± 300bp,
Short Term ± 400bp, Long Term ± 200bp, (USD) Parallel ± 200bp, Short Term ± 300bp, Long Term ± 150bp). In
the IRRBB method, the existing interest rate VaR and the interest rate EaR are expressed as △ EVE (Economic
Value of Equity) and △ NII (Net Interest Income), respectively.
Since impacts of each subsidiary on changes of interest rates are differentiated by portfolios, the Group is preparing
to respond proactively while monitoring the financial market and regulatory environment, and making efforts to
hedge or reduce interest rate risk. In addition, the subsidiaries conduct the crisis analysis on changes in market
interest rates and report it to management and the Group.
In particular, through its ALM (Asset and Liability Management) system, Shinhan Bank measures and manages its
interest rate risk based on various analytical measures such as interest rate gap, duration gap and NPV (Net Present
Value) and NII (Net Interest Income) simulations, and monitors on a monthly basis its interest rate VaR limits,
interest rate EaR (Earnings at Risk) limits and interest rate gap ratio limits.
79
ii) Interest rate risk management from non-trading positions (continued):
The details of interest rate VaR and EaR for major subsidiaries for as of December 31, 2022 and 2021 are as follows:
ii-3) Shinhan Bank

△EVE (*1) W 1,046,136 774,352
△NII (*2) 599,941 96,145
ii-4) Shinhan Card

△EVE (*1) W 1,249,597 831,361
△NII (*2) 693,911 672,303
ii-5) Shinhan Securities

△EVE (*1) W 212,135 186,587
△NII (*2) 95,076 187,548
ii-6) Shinhan Life Insurance

△EVE (*1) W 2,353,230 2,751,977
△NII (*2) 62,923 84,812
(*1) △EVE is the change in economic value of equity capital that can arise from changes in interest rates that affect
the present value of assets, liabilities and off-balance sheet items by using the Basel III standard based IRRBB method.
(*2) △NII is the change in net interest income that can occur over the next year due to changes in interest rates by
using the Basel III standard based IRRBB method.
80
iii) Foreign exchange risk
Exposure to foreign exchange risk can be defined as the difference (net position) between assets and liabilities
presented in foreign currency, including derivative financial instruments linked to foreign exchange rate. Foreign
exchange risk is a factor that causes market risk of the trading position and is managed by the Group under the market
risk management system.
The management of Shinhan Bank’s foreign exchange position is centralized at the S&T Center. Dealers in the S&T
Center manage Shinhan Bank’s overall position within the set limits through spot trading, forward contracts, currency
options, futures and swaps and foreign exchange swaps. Shinhan Bank sets a limit for net open positions by currency
and the limits for currencies other than the U.S. dollars (USD), Japanese yen (JPY), Euros (EUR) and Chinese yuan
(CNY) are set in order to minimize exposures from the other foreign exchange trading.
Foreign currency denominated assets and liabilities as of December 31, 2022 and 2021 are as follows:
December 31, 2022

USD JPY EUR CNY Other Total
Assets:
Cash and due from banks at
amortized cost W 6,905,793 2,071,000 263,746 715,471 4,848,097 14,804,107
Due from banks at FVTPL 26,116 - - - - 26,116
Loans at FVTPL 291,678 - 239,520 - - 531,198
Loan at amortized cost 29,077,790 10,608,558 1,735,218 5,021,722 10,639,672 57,082,960
Securities at FVTPL 4,569,547 4,894 718,381 425 362,497 5,655,744
Derivative assets 1,476,251 2,585 33,613 4,598 33,866 1,550,913
Securities at FVOCI 5,911,909 180,352 287,774 498,367 1,191,984 8,070,386
Securities at amortized cost 1,442,437 203,102 96,701 110,997 1,705,337 3,558,574
Other financial assets 3,471,591 597,067 563,242 344,126 1,555,264 6,531,290
W 53,173,112 13,667,558 3,938,195 6,695,706 20,336,717 97,811,288
Liabilities:
Deposits W 25,719,297 11,812,723 1,633,007 5,035,481 11,769,661 55,970,169
Financial liabilities at
FVTPL 10,038 - - - 422,006 432,044
Derivative liabilities 1,345,476 1,899 59,206 3,074 77,662 1,487,317
Borrowings 9,976,462 1,349,529 182,926 85,862 1,226,389 12,821,168
Debt securities issued 10,774,062 352,677 675,600 108,864 1,495,991 13,407,194
Financial liabilities
designated at FVTPL 1,077,789 - - - - 1,077,789
Other financial liabilities 4,282,674 259,683 621,770 889,138 1,520,382 7,573,647
W 53,185,798 13,776,511 3,172,509 6,122,419 16,512,091 92,769,328
Net domestic and foreign

currency exposure W (12,686) (108,953) 765,686 573,287 3,824,626 5,041,960
Off-balance derivative
exposure 3,692,999 711,180 (466,451) (55,705) (1,836,929) 2,045,094
Net foreign currency exposure W 3,680,313 602,227 299,235 517,582 1,987,697 7,087,054
81
iii) Foreign exchange risk (continued)
Foreign currency denominated assets and liabilities as of December 31, 2022 and 2021 are as follows (continued):
December 31, 2021

USD JPY EUR CNY Other Total
Assets:
Cash and due from banks at
amortized cost W 4,958,621 1,878,286 479,644 700,378 3,630,253 11,647,182
Due from banks at FVTPL 34,262 - - - - 34,262
Loans at FVTPL 534,098 - - - - 534,098
Loan at amortized cost 24,443,325 9,901,710 975,680 5,090,928 10,093,297 50,504,940
Securities at FVTPL 5,417,837 15,557 577,157 233 553,519 6,564,303
Derivative assets 863,223 526 10,440 1,429 33,576 909,194
Securities at FVOCI 4,264,191 162,023 240,705 397,010 998,246 6,062,175
Securities at amortized cost 1,306,357 241,232 69,282 80,133 1,812,470 3,509,474
Other financial assets 4,347,761 242,919 324,886 173,906 927,110 6,016,582
W 46,169,675 12,442,253 2,677,794 6,444,017 18,048,471 85,782,210
Liabilities:
Deposits W 20,060,092 10,642,720 1,376,168 4,820,793 9,766,248 46,666,021
Financial liabilities at
FVTPL 7,114 - - - 581,458 588,572
Derivative liabilities 496,616 418 12,042 1,712 13,642 524,430
Borrowings 7,518,545 940,877 181,027 463,098 931,802 10,035,349
Debt securities issued 8,887,807 137,022 892,220 - 982,736 10,899,785
designated at FVTPL 1,553,683 - - - - 1,553,683
Other financial liabilities 3,806,778 116,544 195,387 551,976 1,112,455 5,783,140
W 42,330,635 11,837,581 2,656,844 5,837,579 13,388,341 76,050,980
Net domestic and foreign

currency exposure W 3,839,040 604,672 20,950 606,438 4,660,130 9,731,230
Off-balance derivative
exposure (419,387) (62,614) 325,000 (95,526) (2,113,543) (2,366,070)
Net foreign currency exposure W 3,419,653 542,058 345,950 510,912 2,546,587 7,365,160
82
(d) Liquidity risk
Liquidity risk refers to the risk of unexpected losses (such as the disposal of assets abnormal pricing, the procurement
of high interest rates, etc.) or insolvency due to inconsistency in funding periods between assets and liabilities or a
sudden outflow of funds.
Each subsidiary seeks to minimize liquidity risk through early detection of risk factors related to the sourcing and
managing of funding that may cause volatility in liquidity and by ensuring that it maintains an appropriate level of
liquidity through systematic management. At the Group level, the Group manages liquidity risk by conducting
monthly stress tests that compare liquidity requirements under normal situations against those under three types of
stress situations, namely, the group-specific internal crisis, crisis in the external market and a combination of internal
and external crisis. Therefore, the Group is checking the liquidity side for abnormalities in preparation for the usual
crisis.
In addition, in order to pre-emptively and comprehensively manage liquidity risk, the Group measures and monitors
liquidity risk management using various indices, including the ‘limit management index’, ‘early warning index’ and
‘monitoring index’.
Shinhan Bank applies the following basic principles for liquidity risk management:
- Raise funding in sufficient amounts, at the optimal time at reasonable costs;

- Maintain risk at appropriate levels and preemptively manage them through a prescribed risk limit system and an
early warning signal detection system;
- Secure stable sources of revenue and minimize actual losses by implementing an effective asset-liability management
system based on diversified sources of funding with varying maturities;
- Monitor and manage daily and intra-daily liquidity positions and risk exposures for timely payment and settlement
of financial obligations due under both normal and crisis situations;
- Conduct periodic contingency analysis in anticipation of any potential liquidity crisis and establish and implement
emergency plans in case of a crisis actually happening; and
- Consider liquidity-related costs, benefits of and risks in determining the pricing of the Group’s products and services,
employee performance evaluations and approval of launching of new products and services.
Shinhan Card sets and operates a level that can withstand a 3-month credit crunch for end-of-month liquidity. The
Group defines and manages the level of caution, anxiety and risk for the real-life liquidity gap ratio, liquidity buffer
ratio, and ABS weight compared to borrowings which are major indicators related to liquidity risk. A contingency
plan has been established to prepare for a crisis.
83
(d) Liquidity risk (continued)
The details of the composition of non-derivative financial instruments and derivative financial instruments by remaining period are as of December 31, 2022 and 2021 are as follows:
December 31, 2022(*1)
Less than 1~3 3~6 6 months 1~5 More than
1 month months months ~ 1 year years 5 years Total
Non-derivative financial instruments:
Assets:
Cash and due from banks at amortized cost W 25,149,737 974,982 529,653 1,795,509 126,607 1,087,249 29,663,737
Due from banks at fair value through profit or
loss 26,116 - - - - - 26,116
Loans at fair value through profit or loss 424,585 858,019 58,705 141,706 735,426 329,636 2,548,077
Loans at amortized cost 40,117,301 50,209,078 62,027,337 95,214,850 138,145,726 85,266,419 470,980,711
Securities at fair value through profit or loss 42,441,397 124,005 452,662 436,486 2,823,913 7,941,405 54,219,868
comprehensive income 54,294,050 1,664,172 506,614 955,692 5,508,063 748,761 63,677,352
Securities at amortized cost 518,445 2,048,707 1,331,479 5,383,089 26,724,733 36,906,942 72,913,395
Other financial assets 17,681,452 88,720 53,740 539,107 341,421 1,793,979 20,498,419
W 180,653,083 55,967,683 64,960,190 104,466,439 174,405,889 134,074,391 714,527,675
Liabilities:
Deposits(*2) W 210,900,107 42,661,824 41,864,404 71,259,303 21,141,919 2,627,394 390,454,951
or loss 1,148,899 - - - - - 1,148,899
Borrowings 11,960,133 4,760,298 4,798,388 7,249,539 12,298,388 9,024,107 50,090,853
Debt securities issued 4,563,916 8,368,614 9,646,088 16,486,221 37,534,713 5,157,377 81,756,929
through profit or loss 276,430 725,909 706,117 1,511,517 4,063,511 1,092,827 8,376,311
Other financial liabilities 27,579,552 233,395 133,729 287,774 1,037,741 113,667 29,385,858
W 256,429,037 56,750,040 57,148,726 96,794,354 76,076,272 18,015,372 561,213,801
Off balance(*3):
Guarantee contracts W 18,226,546 - - - - - 18,226,546
Other liabilities related to loan commitments 205,255,277 - - - - - 205,255,277
W 223,481,823 - - - - - 223,481,823
Derivatives W (384,134) 8,916 (7,058) (220,528) (1,211,454) (24,069) (1,838,327)
84
The details of the composition of non-derivative financial instruments and derivative financial instruments by remaining period are as of December 31, 2022 and 2021 are as follows
(continued):
December 31, 2021(*1)
Less than 1~3 3~6 6 months 1~5 More than 5
1 month months months ~ 1 year years years Total
Non-derivative financial instruments:
Assets:
Cash and due from banks at amortized cost W 24,864,116 796,046 329,809 1,151,073 108,491 1,299,438 28,548,973
Due from banks at fair value through profit or
loss 34,263 - - - - - 34,263
Loans at fair value through profit or loss 170,540 628,905 117,975 49,932 563,246 167,284 1,697,882
Loans at amortized cost 32,258,357 45,442,330 57,821,874 89,630,955 129,534,255 75,571,202 430,258,973
Securities at fair value through profit or loss 51,899,638 106,637 385,952 608,957 2,024,069 5,776,840 60,802,093
comprehensive income 60,818,846 1,204,770 91,704 634,600 1,249,183 897,270 64,896,373
Securities at amortized cost 515,883 2,542,470 1,992,334 4,273,021 18,358,433 36,658,577 64,340,718
Other financial assets 21,052,012 50,602 25,096 372,536 253,373 1,800,309 23,553,928
W 191,613,655 50,771,760 60,764,744 96,721,074 152,091,050 122,170,920 674,133,203
Liabilities:
Deposits(*2) W 212,378,477 36,147,003 40,879,482 59,303,450 17,046,796 2,589,696 368,344,904
or loss 1,371,503 - - - - - 1,371,503
Borrowings 13,159,909 3,928,317 3,643,545 5,171,542 14,168,441 3,649,507 43,721,261
Debt securities issued 4,833,061 7,033,973 7,257,291 17,537,101 41,799,782 5,334,848 83,796,056
through profit or loss 332,597 294,931 586,682 1,298,402 4,165,201 1,346,057 8,023,870
Other financial liabilities 26,754,163 175,952 136,110 568,997 579,871 159,352 28,374,445
W 258,829,710 47,580,176 52,503,110 83,879,492 77,760,091 13,079,460 533,632,039
Off balance(*3):
Guarantee contracts W 16,745,707 - - - - - 16,745,707
Other liabilities related to loan commitments 193,853,866 - - - - - 193,853,866
W 210,599,573 - - - - - 210,599,573
Derivatives W 380,609 23,508 11,867 23,099 (363,034) 47,464 123,513
85
(*1) These amounts include cash flows of principal and interest on financial assets and financial liabilities.
(*2) Demand deposits amounting to W157,446,276 million and W172,107,724 million as of December 31, 2022 and
2021 are included in the ‘Less than 1 month’ category, respectively.
(*3) Though guarantees, loan agreements, and other credit offerings provided by the Group exist, if the counterparty
requests a payment, the Group should fulfill the obligation immediately.
(e) Measurement of fair value
The fair values of financial instruments being traded in an active market are determined by the published market
prices of each period end. The published market prices of financial instruments being held by the Group are based
on the trading agencies’ notifications.
If the market for a financial instrument is not active, such as OTC (Over The Counter market) derivatives, fair value
is determined either by using a valuation technique or independent third-party valuation service. The Group uses its
judgment to select a variety of methods and make rational assumptions that are mainly based on market conditions
existing at the end of each reporting period.
The fair value of financial instruments is determined using valuation techniques; a method of using recent transactions
between independent parties with reasonable judgment and willingness to trade, a method of referring to the current
fair value of other financial instruments that are substantially identical, discounted cash flow model and option pricing
models. For example, the fair value of an interest rate swap is calculated as the present value of the expected future
cash flows, and the fair value of foreign exchange forwarding contract is calculated by applying the public forward
exchange rate at the end of the reporting period.
The Group classifies and discloses fair value of financial instruments into the following three-level hierarchy:
 Level 1: Financial instruments measured at quoted prices from active markets are classified as fair value level
1.
 Level 2: Financial instruments measured using valuation techniques where all significant inputs are observable
market data are classified as level 2.
 Level 3: Financial instruments measured using valuation techniques where one or more significant inputs are
not based on observable market data are classified as level 3.
86
(e) Measurement of fair value (continued)
i) Financial instruments measured at fair value
i-1) The fair value hierarchy of financial instruments presented at their fair values in the statements of financial
position as of December 31, 2022 and 2021 are as follows:
December 31, 2022
Level 1 Level 2 Level 3(*3) Total
Financial assets:
Due from banks measured at FVTPL W - 26,116 - 26,116
Loans at FVTPL(*1) - 957,543 1,431,637 2,389,180
Securities at FVTPL:
Debt securities and other securities(*2) 5,757,167 34,154,575 11,616,475 51,528,217
Equity securities 623,094 5,044 1,996,050 2,624,188
Gold/silver deposits 75,969 - - 75,969
6,456,230 34,159,619 13,612,525 54,228,374
Derivative assets:
Trading 47,550 5,586,798 529,144 6,163,492
Hedging - 298,304 - 298,304
47,550 5,885,102 529,144 6,461,796
Securities measured at FVOCI:
Debt securities 24,784,510 37,309,398 - 62,093,908
Equity securities 691,257 - 876,554 1,567,811
25,475,767 37,309,398 876,554 63,661,719
W 31,979,547 78,337,778 16,449,860 126,767,185
Financial liabilities:
Financial liabilities measured at FVTPL:
Securities sold W 724,104 - - 724,104
1,146,110 - - 1,146,110
through profit or loss:
Derivatives-combined securities(*2) - 389,132 7,930,909 8,320,041
Debt securities issued - 47,327 - 47,327
- 436,459 7,930,909 8,367,368
Derivative liabilities:
Trading 248,462 5,809,597 467,522 6,525,581
Hedging - 835,365 343,759 1,179,124
248,462 6,644,962 811,281 7,704,705
W 1,394,572 7,081,421 8,742,190 17,218,183
(*1) Of the Financial assets at FVTPL invested by the Group, P-note’s valuation of amount related to Lime Asset
Management is W 133.8 billion. As of December 31, 2022, in this regard, international disputes are under way, the
Group has estimated its fair value based on financial information within the recent audit report of underlying assets
since it doesn’t have fair market value observable through active trading markets. Accounting estimates and
assumptions used in preparing consolidated financial statements may lead to adjustment in response to changes in
uncertainty, such as information and market conditions available in the future. In addition, the ultimate impact on the
business, financial condition, performance, and liquidity of the Group is unpredictable.
(*2) Financial instruments (Beneficiary certificates: W 221.7 billion and derivatives-combined securities: W 221.7
billion) related to GEN2 Partners asset management were delayed in repurchase for the year ended December 31,
2022. The Group estimated fair value using the net asset value based on the most recent data available for the
repurchase suspension fund. Since then, it has an uncertainty in measuring fair value due to market conditions.
(*3) The valuation amount for the over-the-counter derivatives classified as Level 3 by Shinhan Securities Corp. are
W75,925 million in financial assets at FVTPL, W7,930,909 million in financial liabilities designated at fair value
through profit or loss, W526,868 million in derivative assets, and W468,028 million in derivative liabilities. The above
level 3 over-the-counter derivatives measure fair value using the internal valuation model of Shinhan Securities Co.,
Ltd.
87
i) Financial instruments measured at fair value (continued)
i-1) The fair value hierarchy of financial instruments presented at their fair values in the statements of financial
position as of December 31, 2022 and 2021 are as follows (continued):
December 31, 2021
Level 1 Level 2 Level 3(*3) Total
Financial assets:
Due from banks measured at FVTPL W - - 34,262 34,262
Loans at FVTPL(*1) - 790,510 892,834 1,683,344
Securities at FVTPL:
Debt securities and other securities(*2) 7,250,389 40,396,692 10,580,066 58,227,147
Equity securities 942,433 107,416 1,325,466 2,375,315
8,276,513 40,504,108 11,905,532 60,686,153
Derivative assets:
Trading 11,542 3,033,965 528,619 3,574,126
Hedging - 225,063 - 225,063
11,542 3,259,028 528,619 3,799,189
Securities measured at FVOCI:
Debt securities 24,951,761 38,855,158 - 63,806,919
Equity securities 257,947 48,225 725,232 1,031,404
25,209,708 38,903,383 725,232 64,838,323
W 33,497,763 83,457,029 14,086,479 131,041,271
Financial liabilities measured at FVTPL:
Securities sold W 787,767 - - 787,767
1,369,225 - - 1,369,225
through profit or loss:
Derivatives-combined securities(*2) - 401,345 7,622,525 8,023,870
Derivative liabilities:
Trading 191,061 2,862,761 153,933 3,207,755
Hedging - 196,060 182,749 378,809
191,061 3,058,821 336,682 3,586,564
W 1,560,286 3,460,166 7,959,207 12,979,659
(*1) Of the Financial assets at FVTPL invested by the Group, P-note’s valuation of amount related to Lime Asset
Management is W 157.9 billion. As of December 31, 2021, in this regard, international disputes are under way, the
Group has estimated its fair value based on financial information within the recent audit report of underlying assets
since it doesn’t have fair market value observable through active trading markets. Accounting estimates and
assumptions used in preparing consolidated financial statements may lead to adjustment in response to changes in
uncertainty, such as information and market conditions available in the future. In addition, the ultimate impact on the
business, financial condition, performance, and liquidity of the Group is unpredictable.
(*2) Financial instruments (Beneficiary certificates: W 300.2 billion and derivatives-combined securities: W 300.2
billion) related to GEN2 Partners asset management were delayed in repurchase for the year ended December 31,
2021. The Group estimated fair value using the net asset value based on the most recent data available for the
repurchase suspension fund. Since then, it has an uncertainty in measuring fair value due to market conditions.
(*3) The valuation amount for the over-the-counter derivatives classified as Level 3 by Shinhan Securities Corp. are
W72,980 million in financial assets at FVTPL, W7,622,526 million in financial liabilities designated at fair value
through profit or loss, W527,726 million in derivative assets, and W153,084 million in derivative liabilities. The
above level 3 over-the-counter derivatives measure fair value using the internal valuation model of Shinhan Securities
Co., Ltd.
88
i-2) Classification of financial instruments as fair value level 3
The Group uses the evaluation value from evaluators who are qualified and external independent to determine the fair
value for Group's assets at the end of each reporting period. Changes in carrying values of financial instruments
classified as Level 3 for the years ended December 31, 2022 and 2021 are as follows:
December 31, 2022

Financial Securities Financial liabilities Derivative assets and
asset at fair value through designated at fair liabilities, net
at fair value other comprehensive value through profit Held for Held for
through profit or loss profit or loss or loss trading hedging
Beginning balance W 12,832,628 725,232 (7,622,525) 374,686 (182,749)
Recognized in total
comprehensive income
for the year:
Recognized in profit
(loss) for the year(*1) 21,694 - 633,415 (484,756) (161,010)
Recognized in other
comprehensive
income (loss) for the
year (152,921) (705) (5,919) - -
(131,227) (705) 627,496 (484,756) (161,010)
Purchase 5,878,937 162,937 - 190,380 -
Issue - - (6,030,787) - -
Settlement (3,479,624) (10,910) 5,094,907 (18,763) -
Transfer to level3(*2) 173,636 - - - -
Transfer from level3(*2) (230,188) - - 75 -
Ending balance W 15,044,162 876,554 (7,930,909) 61,622 (343,759)
89
i-2) Classification of financial instruments as fair value level 3 (continued)
The Group uses the evaluation value from evaluators who are qualified and external independent to determine the fair
value for Group's assets at the end of each reporting period. Changes in carrying values of financial instruments
classified as Level 3 for the years ended December 31, 2022 and 2021 are as follows: (continued):
December 31, 2021

Securities Derivative assets and liabilities, net
Financial at fair value
asset through other Financial liabilities
at fair value comprehensive designated at fair value
through profit or loss profit or loss through profit or loss Held for trading Held for hedging
Beginning balance W 10,925,715 717,408 (8,141,504) 321,499 (102,024)
Recognized in total
comprehensive
income for the
year:
Recognized in
profit (loss) for
the year(*1) 271,065 448 (273,536) 348,046 (80,725)
Recognized in
other
comprehensive
income (loss)
for the year 38,566 24,672 (1,526) - -
309,631 25,120 (275,062) 348,046 (80,725)
Purchase 4,792,810 21,440 - 4,394 -
Issue - - (8,488,977) - -
Settlement (3,498,968) (38,736) 9,283,018 (299,633) -
Reclassification(*3) (9,641) - - - -
Transfer to
level3(*2) 507,984 - - 446 -
Transfer from
level3(*2) (194,903) - - (66) -
Ending balance W 12,832,628 725,232 (7,622,525) 374,686 (182,749)
(*1) Recognized profit or loss of the changes in carrying value of financial instruments classified as Level 3 for the
years ended December 31, 2022 and 2021 are included in the accounts of the statements of comprehensive income,
of which the amounts and the related accounts are as follows:
December 31, 2022

Recognized profit or loss
from the financial
Amounts recognized in instruments held as of
profit or loss December 31
Net loss on financial assets at fair value through profit or
loss W (463,062) (607,708)
Net gain on financial liabilities designated at fair value
through profit or loss 633,415 762,342
Net gain on securities at fair value through other
comprehensive income - -
Net other operating expense (161,010) (161,010)
W 9,343 (6,376)
90
i-2) Changes in carrying values of financial instruments classified as Level 3 for the years ended December 31, 2022
and 2021 are as follows (continued):
December 31, 2021

Recognized profit or loss
from the financial
Amounts recognized in instruments held as of
profit or loss December 31
Net gain on financial assets at fair value through profit or
loss W 619,111 322,974
Net gain (loss) on financial liabilities designated at fair
value through profit or loss (273,536) 186,003
Net gain on securities at fair value through other
comprehensive income 448 -
Net other operating expense (80,725) (83,669)
W 265,298 425,308
(*2) The investment securities transferred to Level 3 as the availability of observable market data changed due to
reasons such as suspension of trading, and the derivative instruments transferred to Level 3 as the availability of
observable market data changed due to reasons such as changes in the valuation.
(*3) It has been replaced by investment assets in associates.
91
i-3) Valuation techniques and significant inputs not observable in markets
i-3-1) Valuation techniques and inputs used in measuring the fair value of financial instruments classified as level 2
as of December 31, 2022 and 2021 are as follows:
December 31, 2022

Valuation Carrying
Type of financial instrument technique value Significant inputs
Assets
Financial asset at fair value through
profit or loss
Discount rate, interest rate, stock price
Debt securities DCF, NAV
W 35,138,234 and etc.
Price of underlying assets such as
Equity securities NAV
5,044 stocks, bonds, etc.
35,143,278
Derivative assets
Trading Option model, 5,586,798
Discount rate, foreign exchange rate,
Implied forward
volatility, stock price and commodity
Hedging interest rate,
index, etc.
DCF 298,304
5,885,102
Interest rate, discount rate and price of
Debt securities DCF underlying assets such as stock,
37,309,398 bonds, etc.
W 78,337,778
Liabilities
Financial liabilities designated at fair
value through profit or loss
Debt securities issued 47,327 Discount rate, volatility
Option model
Compound financial instruments W 389,132 Discount rate
436,459
Derivative liabilities
Trading 5,809,597 Discount rate, foreign exchange rate,
Option model,
Hedging DCF
835,365 index, etc.
6,644,962
W 7,081,421
92
i-3) Valuation techniques and significant inputs not observable in markets (continued)
i-3-1) Valuation techniques and inputs used in measuring the fair value of financial instruments classified as level 2
as of December 31, 2022 and 2021 are as follows (continued):
December 31, 2021

Valuation Carrying
Type of financial instrument technique value Significant inputs
Assets
Financial asset at fair value through
profit or loss
Discount rate, interest rate, stock price
Debt securities DCF, NAV
W 41,187,202 and etc.
Price of underlying assets such as
107,416 stocks, bonds, etc.
41,294,618
Derivative assets
Trading Option model, 3,033,965
Discount rate, foreign exchange rate,
Implied forward
Hedging interest rate,
index, etc.
DCF 225,063
3,259,028
Debt securities DCF 38,855,158 Interest rate, discount rate and price of
underlying assets such as stock,
48,225 bonds, etc.
38,903,383
W 83,457,029
Liabilities
Financial liabilities designated at fair
value through profit or loss
Compound financial instruments Option model W 401,345 Discount rate
Trading 2,862,761 Discount rate, foreign exchange rate,
Option model,
Hedging DCF
196,060 index, etc.
3,058,821
W 3,460,166
93
i-3-2) Valuation techniques and significant inputs, but not observable, used in measuring the fair value of financial
instruments classified as level 3 as of December 31, 2022 and 2021 are as follows:
December 31, 2022

Type of financial Valuation Carrying
instrument technique value(*2) Significant unobservable inputs Range
Financial assets
Financial asset at fair value
through profit or loss
DCF, NAV, The volatility of the underlying
Option asset, 0.60%~68.10%
Debt securities model(*1), W 13,048,112 Discount rate, 2.92%~38.87%
Income Correlations, Growth rate, and 15.94%~90.00%
approach Liquidation Value
DCF, NAV,
Option
model(*1), The volatility of the underlying
20.50%~25.30%
Comparable asset,
Equity securities 1,996,050 5.59%~15.18%
company Discount rate and
11.90%~66.00%
analysis, Correlations
Transaction
case price
15,044,162
Derivative assets
The volatility of the underlying
Equity and foreign 4.89%~84.40%
Option 54,541 asset and
exchange related 7.30%~72.30%
model(*1) Correlations
0.60%~1.10%
Interest rates related Option 51,025 asset and
76.60%~78.90%
model(*1) Correlations
The volatility of the underlying 42.20%~55.90%
Credit and commodity
Option 423,578 asset, Correlations 99.9%
related
model(*1) and Hazard Rate 1.20%~3.60%
529,144
Securities at fair value

through other
DCF, NAV,
Option 28.62%
model(*1), 9.08%~19.14%
Equity securities 876,554 asset, Discount rate,
Comparable 0.00%~2.00%
Growth rate and Volatility
company 0.56%~1.21%
analysis
W 16,449,860
94
instruments classified as level 3 as of December 31, 2022 and 2021 are as follows (continued):
December 31, 2022

designated at fair
value through profit or
loss
Option 0.20%~84.40%
Equity related W 7,930,909 asset and
model(*1) -44.20%~86.30%
Correlations
Equity and foreign Option 4.89%~84.40%
13,841 asset and
exchange related model(*1) -42.30%~87.60%
Correlations
0.20%~1.10%
Option asset,
Interest rates related 642,123 0.00%~1.46%
model(*1) Regression coefficient and
23.60%~90.34%
Correlations
The volatility of the underlying 0.20%~45.70%
Credit and commodity Option
155,317 asset, Correlations 23.60%~78.90%
related model(*1)
and Hazard Rate 1.20%~2.90%
811,281
W 8,742,190
(*1) Option model that the Group uses in derivative valuation includes Black-Scholes model, Hull-White model,
Monte Carlo simulation, etc.
(*2) There is no disclosure for valuation techniques and input variables related to items where the carrying value is
recognized as a reasonable approximation of fair value and the carrying value is disclosed at fair value.
95
December 31, 2021

Financial assets
Financial asset at fair value
19.48%~72.69%
DCF, NAV, asset,
0.07%~27.30%
Debt securities Option W 11,507,162 Discount rate,
23.17%~58.47%
model(*1) Correlations and
0.00%~1.00%
Growth rate
DCF, NAV,
Option 16.00%~32.00%
asset,
model(*1), 5.45%~16.35%
Equity securities 1,325,466 Discount rate,
Comparable 0.00%~54.00%
Correlations and
company 1.00%
Growth rate
analysis
12,832,628
Derivative assets
28,783 asset and
Correlations
0.70%
Option asset,
model(*1) Correlations and
1.11%~1.83%
Discount rate
Credit and commodity Option 0.70%~4.70%
493,807 asset
related model(*1) 5.17%~93.69%
and Hazard Rate
528,619

through other
DCF, NAV,
Option
The volatility of the underlying 25.49%
model(*1),
Equity securities 725,232 asset, Discount rate and 9.80%~22.79%
Comparable
Growth rate 0.00%~2.00%
company
analysis
W 14,086,479
96
December 31, 2021

Financial liabilities at fair
value through profit or
loss
Option 0.50%~94.90%
Equity related W 7,622,525 asset, and
model(*1) -12.00%~88.00%
Correlations
13,214 asset, and
Correlations
0.46%~0.78%
Option asset,
model(*1) Regression coefficient, and
0.00%~90.34%
Correlations
Credit and commodity Option 1.90%~94.90%
65,104 asset, and
related model(*1) 5.17%~100.79%
Hazard Rate
336,682
W 7,959,207
(*1) Option model that the Group uses in derivative valuation includes Black-Scholes model, Hull-White model,
Monte Carlo simulation, etc.
(*2) There is no disclosure for valuation techniques and input variables related to items where the carrying value is
recognized as a reasonable approximation of fair value and the carrying value is disclosed at fair value.
97
i-4) Sensitivity for changing in unobservable inputs
For level 3 fair value measurement, changing one or more of the unobservable inputs used to reasonably possible
alternative assumptions would have the following effects on profit or loss, or other comprehensive income as of
December 31, 2022 and 2021.
December 31, 2022

Favorable Unfavorable
changes changes
Financial assets:
Effects on profit or loss for the period(*1),(*2):
Financial asset at fair value through profit or loss W 62,840 (59,865)
Derivative assets 12,499 (11,465)
Securities at fair value through other comprehensive income(*2) 44,097 (32,469)
W 119,436 (103,799)
Effects on profit or loss for the period(*1):
Financial liabilities designated at fair value through profit or loss W 57,121 (60,525)
Derivative liabilities 16,388 (16,908)
W 73,509 (77,433)
December 31, 2021

Favorable Unfavorable
changes changes
Financial assets:
Effects on profit or loss for the period(*1),(*2):
Financial asset at fair value through profit or loss W 39,084 (43,072)
Derivative assets 16,893 (11,809)
Securities at fair value through other comprehensive income(*2) 38,865 (38,210)
W 94,842 (93,091)
Effects on profit or loss for the period(*1):
Financial liabilities designated at fair value through profit or loss W 45,493 (50,845)
Derivative liabilities 25,326 (23,486)
W 70,819 (74,331)
(*1) Fair value changes are calculated by increasing or decreasing the volatility of the underlying asset(-10~10%p) or
correlations (-10~10%p), a significant unobservable input.
(*2) Fair value changes are calculated by increasing or decreasing the growth rate and discount rate, which are a
significant unobservable input, from -1%p to 1%p.
98
ii) Financial instruments measured at amortized cost
ii-1) The method of measuring the fair value of financial instruments measured at amortized cost is as follows:
Type Measurement methods of fair value
Cash and The carrying value and the fair value for cash are identical and most of deposits are
due from banks floating interest rate deposits or next day deposits of a short-term instrument. For this
reason, the carrying value approximates fair value.
Loans The fair value of the loans is measured by discounting the expected cash flow at the
market interest rate and credit risk of the borrower.
Securities An external professional evaluation agency is used to calculate the valuation amount
using the market information. The agency calculates the fair value based on active
market prices, and DCF model is used to calculate the fair value if there is no quoted
price.
Deposits and borrowings The carrying value and the fair value for demand deposits, cash management account
deposits, call money as short-term instrument are identical. The fair value of others is
measured by discounting the contractual cash flow at the market interest rate that takes
into account the residual risk.
Debt securities issued Where available, the fair value of deposits and borrowings is based on the published
price quotations in an active market. In case there is no data for an active market price,
it is measured by discounting the contractual cash flow at the market interest rate that
takes into account the residual risk.
Other financial assets and The carrying value is measured at fair value for short-term and suspense accounts,
other financial liabilities such as spot exchange, inter-bank fund transfer, and domestic exchange of payments,
and for the remaining financial instruments, the present value is calculated by
discounting the contractual cash flows at a discount rate which considered residual
risk at the market interest rate.
99
ii) Financial instruments measured at amortized cost (continued)
ii-2) The carrying value and the fair value of financial instruments measured at amortized cost as of December 31,
2022 and 2021 are as follows:

Carrying value Fair value Carrying value Fair value
Assets:
Deposits measured at amortized cost W 27,227,755 27,123,736 24,232,013 24,216,932
Loans measured at amortized cost 412,291,511 409,344,807 389,137,156 390,406,822
Securities measured at amortized cost:

Government bonds 38,371,463 33,820,827 34,679,301 34,377,110
Financial institution bonds 6,530,386 6,294,481 3,423,536 3,477,834
Corporation bonds 13,069,644 11,428,463 11,827,239 11,750,467
57,971,493 51,543,771 49,930,076 49,605,411
Other financial assets 21,896,490 22,129,807 23,238,932 23,389,209
W 519,387,249 510,142,121 486,538,177 487,618,374
Liabilities:
Deposit liabilities:
Demand deposits W 157,446,276 157,446,276 172,107,724 172,107,724
Time deposits 196,265,911 195,886,583 161,498,901 161,301,409
Certificate of deposit 14,921,375 14,748,736 16,576,536 16,606,894
Issued bill deposit 6,631,858 6,631,276 5,818,001 5,817,844
CMA deposits 4,634,010 4,634,010 5,246,478 5,246,478
Others 3,111,315 3,110,993 3,649,035 3,648,983
383,010,745 382,457,874 364,896,675 364,729,332
Borrowing debts:
Call-money 1,276,301 1,276,301 1,534,611 1,534,611
Bills sold 15,057 15,006 9,032 9,019
Bonds sold under repurchase agreements 9,544,536 9,544,536 10,709,115 10,709,115
Borrowings 38,443,281 37,602,027 30,914,307 30,803,417
49,279,175 48,437,870 43,167,065 43,056,162
Debts:
Borrowings in Korean won 63,927,063 62,059,253 69,288,982 69,081,140
Borrowings in foreign currency 13,361,720 13,051,576 10,860,381 11,076,757
77,288,783 75,110,829 80,149,363 80,157,897
Other financial liabilities 32,099,649 31,790,397 29,880,879 29,872,186
W 541,678,352 537,796,970 518,093,982 517,815,577
100
ii-3) The fair value hierarchy of financial assets and liabilities which are not measured at their fair values in the
statements of financial position but with their fair value disclosed as of December 31, 2022 and 2021 are as follows:
December 31, 2022

Level 1 Level 2 Level 3 Total
Assets:
Deposits measured at amortized cost W 429,794 26,693,942 - 27,123,736
Loans measured at amortized cost - 5,832,484 403,512,323 409,344,807

Government bonds 22,668,684 11,152,143 - 33,820,827
Financial institution bonds 1,898,457 4,396,024 - 6,294,481
Corporation bonds - 11,428,463 - 11,428,463
24,567,141 26,976,630 - 51,543,771
Other financial assets - 12,598,487 9,531,320 22,129,807

W 24,996,935 72,101,543 413,043,643 510,142,121
Liabilities:
Demand deposits W - 157,446,276 - 157,446,276
Time deposits - - 195,886,583 195,886,583
Certificate of deposit - - 14,748,736 14,748,736
Issued bill deposit - - 6,631,276 6,631,276
CMA deposits - 4,634,010 - 4,634,010
Other - 3,057,789 53,204 3,110,993
- 165,138,075 217,319,799 382,457,874
Borrowing debts:
Call-money - 1,276,301 - 1,276,301
Bills sold - - 15,006 15,006
Bonds sold under repurchase agreements - - 9,544,536 9,544,536
Borrowings - 19,922 37,582,105 37,602,027
- 1,296,223 47,141,647 48,437,870
Debts:
Borrowings in won - 31,665,994 30,393,259 62,059,253
Borrowings in foreign currency - 9,625,410 3,426,166 13,051,576
- 41,291,404 33,819,425 75,110,829
Other financial liabilities - 8,921,782 22,868,615 31,790,397

W - 216,647,484 321,149,486 537,796,970
101
ii-3) The fair value hierarchy of financial assets and liabilities which are not measured at their fair values in the
statements of financial position but with their fair value disclosed as of December 31, 2022 and 2021 are as follows
(continued):
December 31, 2021

Level 1 Level 2 Level 3 Total
Assets:
Deposits measured at amortized cost W 252,474 23,964,458 - 24,216,932
Loans measured at amortized cost - 2,387,533 388,019,289 390,406,822

Government bonds 23,045,322 11,331,788 - 34,377,110
Financial institution bonds 698,105 2,779,729 - 3,477,834
Corporation bonds - 11,662,046 88,421 11,750,467
23,743,427 25,773,563 88,421 49,605,411
Other financial assets - 14,200,356 9,188,853 23,389,209

W 23,995,901 66,325,910 397,296,563 487,618,374
Liabilities:
Demand deposits W - 172,107,724 - 172,107,724
Time deposits - - 161,301,409 161,301,409
Certificate of deposit - - 16,606,894 16,606,894
Issued bill deposit - - 5,817,844 5,817,844
CMA deposits - 5,246,478 - 5,246,478
Other - 3,553,942 95,041 3,648,983
- 180,908,144 183,821,188 364,729,332
Borrowing debts:
Call-money - 1,534,611 - 1,534,611
Bills sold - - 9,019 9,019
Bonds sold under repurchase agreements - - 10,709,115 10,709,115
Borrowings - - 30,803,417 30,803,417
- 1,534,611 41,521,551 43,056,162
Debts:
Borrowings in won - 38,474,804 30,606,336 69,081,140
Borrowings in foreign currency - 7,956,414 3,120,343 11,076,757
- 46,431,218 33,726,679 80,157,897
Other financial liabilities - 9,413,875 20,458,311 29,872,186

W - 238,287,848 279,527,729 517,815,577
102
ii-4) Valuation techniques and inputs used in the fair value measurements categorized within Level 2 and Level 3 for
fair value disclosures, which are not recognized at fair value, as at December 31, 2022 and 2021, are as follows:
December 31, 2022

Valuation
Fair value(*) technique Inputs
Financial instruments classified as level 2 :
Assets
Due from banks measured at amortized cost W 26,693,942 DCF Discount rate
Discount rate, Credit spread
Loans measured at amortized cost 5,832,484 DCF
and Prepayment rate
Securities measured at amortized cost 26,976,630 DCF Discount rate
Other financial assets 12,598,487 DCF Discount rate
Assets
Discount rate, Credit spread and
Prepayment rate
Securities measured at amortized cost - DCF Discount rate
W 485,145,186

Liabilities
Deposits W 165,138,075 DCF Discount rate
Borrowings 1,296,223 DCF Discount rate
Debt securities issued 41,291,404 DCF Discount rate
Other financial liabilities 8,921,782 DCF Discount rate
Liabilities
Deposits 217,319,799 DCF Discount rate
Discount rate,
Debt securities issued 33,819,425 DCF Regression coefficient
and Correlations
W 537,796,970
(*) Valuation techniques and inputs are not disclosed when the carrying value is a reasonable approximation of fair
value.
103
- For financial instruments not measured at fair value in the statement of financial position but for which the fair
value is disclosed, information on valuation technique and inputs used in measuring fair value of financial
instruments classified as level 2 or level 3 at December 31, 2022 and 2021 are as follows (continued) :
December 31, 2021

Valuation
Fair value(*) technique Inputs
Assets
Due from banks measured at amortized cost W 23,964,458 DCF Discount rate
and Prepayment rate
Securities measured at amortized cost 25,773,563 DCF Discount rate
Assets
and Prepayment rate
Securities measured at amortized cost 88,421 DCF Discount rate
W 463,622,473

Liabilities
Deposits W 180,908,144 DCF Discount rate
Debt securities issued 46,431,218 DCF Discount rate
Liabilities
Deposits 183,821,188 DCF Discount rate
Discount rate,
Debt securities issued 33,726,679 DCF Regression coefficient
and Correlations
W 517,815,577
(*) Valuation techniques and inputs are not disclosed when the carrying value is a reasonable approximation of fair
value
ⅲ) Changes in gains or losses on valuation at the transaction date for the years ended December 31, 2022 and
2021, are as follows:

Beginning balance W (160,525) (292,599)
New transactions (88,769) (206,897)
Recognized in profit for the year 105,335 338,971
Ending balance W (143,959) (160,525)
104
(f) Classification by categories of financial instruments
Financial assets and liabilities are measured at fair value or amortized cost. The financial instruments measured at
fair value or amortized costs are measured in accordance with the Group’s valuation methodologies, which are
described in Note 4.(e) Measurement of fair value.
The carrying values of each category of financial assets and financial liabilities as of December 31, 2022 and 2021
is as follows:
December 31, 2022

Derivatives held
FVTPL FVOCI Amortized cost for hedging Total
Assets:
Cash and due from
banks at amortized
cost W - - 29,532,235 - 29,532,235
Due from banks at
fair value through
profit or loss 26,116 - - - 26,116
through profit or
loss 54,228,374 - - - 54,228,374
Derivatives assets 6,163,492 - - 298,304 6,461,796
Loans at fair value
through profit or
loss 2,389,180 - - - 2,389,180
Loans at amortized
cost - - 412,291,511 - 412,291,511
through other
comprehensive
income - 63,661,719 - - 63,661,719
Securities at
amortized cost - - 57,971,493 - 57,971,493
Others - - 21,896,490 - 21,896,490
W 62,807,162 63,661,719 521,691,729 298,304 648,458,914
December 31, 2022

Financial
FVTPL liabilities
liabilities measured at Derivatives held
FVTPL designated amortized cost for hedging Total
Liabilities:
Deposits W - - 383,010,745 - 383,010,745
at fair value
through profit or
loss 1,146,110 - - - 1,146,110
designated at
FVTPL - 8,367,368 - - 8,367,368
Derivatives
liabilities 6,525,581 - - 1,179,124 7,704,705
Borrowings - - 49,279,175 - 49,279,175
Debt securities
issued - - 77,288,783 - 77,288,783
Others - - 32,099,649 - 32,099,649
W 7,671,691 8,367,368 541,678,352 1,179,124 558,896,535
105
(f) Classification by categories of financial instruments (continued)
The carrying values of each category of financial assets and financial liabilities as of December 31, 2022 and 2021
is as follows (continued):
December 31, 2021

Derivatives held
FVTPL FVOCI Amortized cost for hedging Total
Assets:
Cash and due from
banks at amortized
cost W - - 28,453,404 - 28,453,404
Due from banks at
fair value through
profit or loss 34,262 - - - 34,262
through profit or
loss 60,686,153 - - - 60,686,153
Derivatives assets 3,574,126 - - 225,063 3,799,189
Loans at fair value
through profit or
loss 1,683,344 - - - 1,683,344
Loans at amortized
cost - - 389,137,156 - 389,137,156
through other
comprehensive
income - 64,838,323 - - 64,838,323
Securities at
amortized cost - - 49,930,076 - 49,930,076
Others - - 23,238,932 - 23,238,932
W 65,977,885 64,838,323 490,759,568 225,063 621,800,839
December 31, 2021

Financial
FVTPL liabilities
liabilities measured at Derivatives held
FVTPL designated amortized cost for hedging Total
Liabilities:
Deposits W - - 364,896,675 - 364,896,675
at fair value
through profit or
loss 1,369,225 - - - 1,369,225
designated at
FVTPL - 8,023,870 - - 8,023,870
Derivatives
liabilities 3,207,755 - - 378,809 3,586,564
Borrowings - - 43,167,065 - 43,167,065
Debt securities
issued - - 80,149,363 - 80,149,363
Others - - 29,880,879 - 29,880,879
W 4,576,980 8,023,870 518,093,982 378,809 531,073,641
106
(g) Transfer of financial instruments
i) Transfers that do not qualify for derecognition
① Sale of repurchase bonds
Among the Group’s sale of repurchase bonds, followings are the details of financial instruments that do not qualify
for derecognition because the Group sold under repurchase agreement at a fixed price as of December 31, 2022 and
2021:
Transferred asset:
Securities at FVTPL W 7,461,978 9,883,335
Securities at FVOCI 1,325,157 647,541
Securities at amortized cost 269,724 210,490
W 9,056,859 10,741,366
Associated liabilities:
Bonds sold under repurchase agreements W 9,544,536 10,709,115
② Securities loaned
If the securities owned by the Group are loaned, the ownership of the securities is transferred, but is required to be
returned at the end of the loan period. Therefore, the Group continues to recognize the entire securities loaned as it
holds most of the risks and compensation of the securities.
Securities loaned as of December 31, 2022 and 2021 are as follows:

December December
Borrowers
31, 2022 31, 2021
Korea Securities Finance Corp.,
Government bonds
W 13,282,971 9,044,914 Korea Securities Depository, etc
Korea Securities Finance Corp.,
Financial institutions bonds
425,179 209,594 Korea Securities Depository, etc
Corporation bonds 222,857 - BNP Paribas Securities Corp.
CITIGROUP GLOBAL MARKETS Ltd.,
Equity securities
44,622 8,109 etc
W 13,975,629 9,262,617
③ Securitization of financial assets
The Group uses the securitization of financial assets as a means of financing and to transfer risk. Generally, these
securitization transactions result in the transfer of contractual cash flows to the debt securities holders issued from the
financial asset portfolio. The Group recognizes debt securities issued without derecognition of assets under individual
agreements, partially recognizes assets to the extent of the Group’s level of involvement in assets, or recognizes rights
and obligations arising from the derecognition and transfer of assets as separate assets and liabilities. The Group
derecognizes the entire asset only if it transfers contractual rights to the cash flows of financial assets or if it holds
contractual rights but bears contractual obligations to pay cash flows to the other party without significant delays or
reinvestment and transfers most of the risks and benefits of ownership (e.g., credit risk, interest rate risk, prepayment
risk, etc.). For the years ended December 31, 2022 and 2021, the carrying value of financial assets related to
securitization transactions that have neither been transferred nor derecognized are W 11,429,250 million and W
11,529,634 million, respectively; the carrying values of related liabilities are W 6,366,124 million and W 8,284,109
million, respectively.
107
(g) Transfer of financial instruments (continued)
ii) Financial instruments qualified for derecognition and continued involvement
There are no financial instruments which qualify for derecognition and in which the Group has continuing
involvements as of December 31, 2022, and 2021.
108
(h) Offsetting financial assets and financial liabilities
Financial assets and liabilities subject to offsetting, enforceable master netting arrangements and similar agreements as of December 31, 2022 and 2021 are as follows:
December 31, 2022

Gross amounts of Related amounts not set off in the
recognized Net amounts of statement of financial position
financial assets/ financial assets/
Gross amounts of liabilities set off in liabilities presented
recognized financial the statement of in the statement of Financial Cash collateral
assets/ liabilities financial position financial position instruments received Net amount
Assets:
Derivatives(*1) W 6,523,848 - 6,523,848
10,950,859 473,252 2,535,392
Other financial instruments(*1) 7,435,655 - 7,435,655
Securities repurchased under repurchase agreements
and bonds purchased under repurchase
agreements(*2) 12,991,705 - 12,991,705 12,839,843 - 151,862
Securities loaned(*2) 4,673,143 - 4,673,143 4,660,603 - 12,540
Domestic exchange settlement debit(*3) 45,282,683 39,247,867 6,034,816 - - 6,034,816
Receivables from disposal of securities(*4) 4,933,264 2,405,878 2,527,386 1,767,831 - 759,555
Insurance receivables 145,747 - 145,747 121,315 - 24,432
W 81,986,045 41,653,745 40,332,300 30,340,451 473,252 9,518,597
Liabilities:
Derivatives(*1),(*5) W 15,797,823 - 15,797,823
11,222,110 1,000 10,773,043
Bonds sold under repurchase agreements(*2) 9,544,536 - 9,544,536 8,931,247 - 613,289
Securities borrowed(*2) 724,104 - 724,104 724,104 - -
Domestic exchange settlement pending(*3) 41,556,442 39,247,867 2,308,575 2,231,508 - 77,067
Payable from purchase of securities(*4) 4,854,358 2,405,878 2,448,480 1,768,821 - 679,659
Insurance payables 122,083 - 122,083 121,315 - 768
W 78,797,676 41,653,745 37,143,931 24,999,105 1,000 12,143,826
109
(h) Offsetting financial assets and financial liabilities (continued)
Financial assets and liabilities subject to offsetting, enforceable master netting arrangements and similar agreements as of December 31, 2022 and 2021 are as follows (continued):
(*1) The Group has certain derivative transactions subject to the ISDA (International Derivatives Swaps and Dealers Association) agreement. According to the ISDA agreement, when credit events (e.g.
default) of counterparties occur, all derivative agreements are terminated and set off. At the time of termination, the parties to the transaction will offset the amount of payment or payment to each other,
and one party will pay the other party a single amount will be paid to the other party.
(*2) Resale and repurchase agreement, securities borrowing and lending agreement are also similar to ISDA agreement with respect to enforceable netting agreements.
(*3) The Group has legally enforceable right to set off and settles financial assets and liabilities on a net basis under normal business terms. Therefore, domestic exchanges settlement receivables (payables)
are recorded on a net basis in the consolidated statements of financial position.
(*4) It is an account that deals with bonds and liabilities based on the settlement of listed stocks traded in the market. The Group currently has a legally enforceable right to set off the recognized amounts
and intends to settle on a net basis. Therefore, the net amount is presented in the consolidated statement of financial position. The offset amount of related bonds and liabilities based on the settlement of
over-the-counter derivatives in-house payment by Central Clearing System is included.
(*5) As of December 31, 2022, the total amount of financial liabilities includes W 8,320,041 million of ELS (equity-linked securities) products and of DLS (derivative linked securities) products. In the
course of this transaction, the Group has provided collateral for some transactions. The financial instruments provided as collateral of W 432,228 million are included in the related instruments not offset
in the statement of financial position. The total amount of financial liabilities recognized as of December 31, 2022 is W 1,934,547 million for transactions with the other party with collective offset contracts
or similar arrangements.
110
Financial assets and liabilities subject to offsetting, enforceable master netting arrangements and similar agreements as of December 31, 2022 and 2021 are as follows: (continued)
December 31, 2021

Gross amounts of Related amounts not set off in the
recognized Net amounts of statement of financial position
financial assets/ financial assets/
Gross amounts of liabilities set off in liabilities presented
recognized financial the statement of in the statement of Financial Cash collateral
assets/ liabilities financial position financial position instruments received Net amount
Assets:
Derivatives(*1) W 3,821,253 - 3,821,253
9,509,183 409,487 1,775,888
Securities repurchased under repurchase agreements
and bonds purchased under repurchase
agreements(*2) 12,749,800 - 12,749,800 12,618,359 - 131,441
Securities loaned(*2) 2,648,248 - 2,648,248 2,648,248 - -
Domestic exchange settlement debit(*3) 44,872,022 38,171,649 6,700,373 - - 6,700,373
Receivables from disposal of securities(*4) 7,082,779 3,477,874 3,604,905 2,668,065 - 936,840
Insurance receivables 70,087 - 70,087 45,849 - 24,238
W 79,117,494 41,649,523 37,467,971 27,489,704 409,487 9,568,780
Liabilities:
Derivatives(*1),(*5) W 11,434,081 - 11,434,081
10,093,812 1,000 8,120,313
Bonds sold under repurchase agreements(*2) 10,709,115 - 10,709,115 10,492,779 - 216,336
Securities borrowed(*2) 787,767 - 787,767 787,767 - -
Domestic exchange settlement pending(*3) 40,062,057 38,171,649 1,890,408 1,809,727 - 80,681
Payable from purchase of securities(*4) 7,036,630 3,477,874 3,558,756 2,668,767 - 889,989
Insurance payables 45,940 - 45,940 45,849 - 91
W 76,856,634 41,649,523 35,207,111 25,898,701 1,000 9,307,410
111
Financial assets and liabilities subject to offsetting, enforceable master netting arrangements and similar agreements as of December 31, 2022 and 2021 are as follows (continued):
(*1) The Group has certain derivative transactions subject to the ISDA (International Derivatives Swaps and Dealers Association) agreement. According to the ISDA agreement, when credit events (e.g.
default) of counterparties occur, all derivative agreements are terminated and set off. At the time of termination, the parties to the transaction will offset the amount of payment or payment to each other,
and one party will pay the other party a single amount will be paid to the other party.
(*2) Resale and repurchase agreement, securities borrowing and lending agreement are also similar to ISDA agreement with respect to enforceable netting agreements.
(*3) The Group has legally enforceable right to set off and settles financial assets and liabilities on a net basis under normal business terms. Therefore, domestic exchanges settlement receivables (payables)
are recorded on a net basis in the consolidated statements of financial position.
(*4) It is an account that deals with bonds and liabilities based on the settlement of listed stocks traded in the market. The Group currently has a legally enforceable right to set off the recognized amounts
and intends to settle on a net basis. Therefore, the net amount is presented in the consolidated statement of financial position. The offset amount of related bonds and liabilities based on the settlement of
over-the-counter derivatives in-house payment by Central Clearing System is included.
(*5) As of December 31, 2021, the total amount of financial liabilities includes W 8,023,870 million of ELS (equity-linked securities) products and of DLS (derivative linked securities) products. In the
course of this transaction, the Group has provided collateral for some transactions. The financial instruments provided as collateral of W 717,841 million are included in the related instruments not offset
in the statement of financial position. The total amount of financial liabilities recognized as of December 31, 2021 is W 445,128 million for transactions with the other party with collective offset contracts
or similar arrangements.
112
(i) Capital risk management
The criteria for capital adequacy to be complied with by the Group are 8.0%. In addition, the minimum regulatory
BIS capital ratio, which should be maintained additionally to increase the ability to absorb losses, has been raised to
up to 14% as the capital regulation based on the Basel III standard is enforced from 2016. This is based on the addition
of capital conservation capital (2.5%p) and domestic system-critical banks (D-SIB) capital (1.0%p) and economic
response capital (2.5%p) to the existing lowest common equity capital ratio, and economic response capital can be
charged up to 2.5%p during credit expansion period. As of December 31, 2022, the minimum regulatory BIS capital
ratio to be observed is 11.5%, which is the standard for applying capital conservation capital (2.5%p), D-SIB capital
(1.0%p), and economic response capital (0%p).
Basel III capital ratio is the concept of 'International Agreement on the Measurement and Standards of Equity Capital'
of the Basel Bank Supervisory Commission of BIS (International Settlement Bank). It is calculated as '(common
stock capital (after deduction of deductions) + other basic capital + supplementary capital) ÷ risk weighted assets'.
The capital of common stock can be the first to make up for the loss of the financial holding company. The capital
of common stock consists of capital stock, capital reserve, retained earnings and other, which will not be redeemed
until the liquidation and will be redeemed at the last during the liquidation. Other basic capital consists of capital
securities that meet certain requirements as capital of permanent nature. Complementary capital is capital that can
compensate for losses of financial holding companies during liquidation, and consists of capital securities, etc. that
meet certain requirements. The deduction items are those held by the Group as assets or capital items, but do not
contribute to the ability to absorb losses. Unless otherwise noted, it will be deducted from common stock capital.
The capital ratio of the Group based on Basel III is as of December 31, 2022 and 2021 are as follows:

Capital :
Tier I common equity capital W 37,287,768 35,469,554
Additional tier 1 capital 6,018,792 4,965,931
Tier I capital 43,306,560 40,435,485
Tier II capital 3,714,400 3,427,951
Total capital (A) W 47,020,960 43,863,436
Total risk-weighted assets (B) W 291,542,598 270,692,183
Capital adequacy ratio (A/B) 16.13% 16.20%

Tier I capital adequacy ratio 14.85% 14.94%
Common stock ratio 12.79% 13.10%
(*) As of December 31, 2022, the Group has maintained an appropriate consolidated equity capital ratio according
to the BIS equity capital regulation.
113
5. Significant estimates and judgments
The preparation of financial statements requires the Group to make estimates and assumptions concerning the future.
Management also needs to exercise judgment in applying the Group’s accounting policies. Estimates and
assumptions are continually evaluated and are based on historical experience and other factors, including
expectations of future events that are believed to be reasonable under the circumstances. As the resulting accounting
estimates will, by definition, seldom equal the related actual results, it can contain a significant risk of causing a
material adjustment. The estimates and assumptions that have a significant risk of causing a material adjustment to
the carrying values of assets and liabilities within the next financial year are discussed below.
(a) Estimation of impairment of goodwill
The Group reviews the goodwill annually in accordance with the accounting policy in Note 3. The recoverable
amount of the cash-generating unit (group) is determined based on the value-in-use calculation. These calculations
are based on estimates.
(b) Income taxes
The Group is subject to tax laws from various countries. In the normal course of business, there are various types of
transactions and different accounting methods that may add uncertainties to the decision of the final income taxes.
The Group has recognized current and deferred taxes that reflect tax consequences based on the best estimates in
which the Group expects, at the end of the reporting period, to recover or settle the carrying value of its assets and
liabilities. However, actual income taxes in the future may not be identical to the recognized deferred tax assets and
liabilities, and this difference can affect current and deferred tax at the period when the final tax effect is determined.
(c) Fair value of financial instruments
The fair values of financial instruments (e.g. over-the-counter derivatives) which are not actively traded in the market
are determined by using valuation techniques. The Group determines valuation techniques and assumptions based on
significant market conditions at the end of each reporting period. Diverse valuation techniques are used to determine
the fair value of financial instruments, from generic valuation techniques to internally developed valuation models
that incorporate various types of assumptions and variables.
(d) Allowance for credit loss, guarantees and unused loan commitments
The Group determines and recognizes allowances for losses on debt securities, loans and other receivables measured
at amortized cost or FVOCI, and recognizes provisions for guarantees and unused loan commitments through
impairment testing. The accuracy of allowances and provisions for credit losses are determined by the estimation of
expected cash flows for individually assessed allowances, and methodology and assumptions used for collectively
assessed allowances and provisions for groups of loans, guarantees and unused loan commitments.
114
6. Investment in subsidiaries
(a) The summarized financial information of the controlling company and the Group’s major subsidiaries as of
December 31, 2022 and 2021 is as follows:
Asset Liability Equity Asset Liability Equity

Investees(*1)(*2) balance balance balance balance balance balance
Shinhan Financial
Group(separate) W 37,456,314 10,779,765 26,676,549 36,815,893 10,410,517 26,405,376
Shinhan Bank 491,981,392 460,814,132 31,167,260 467,435,213 438,199,575 29,235,638
Shinhan Card Co., Ltd. 43,050,321 35,591,567 7,458,754 38,472,228 31,737,225 6,735,003
Shinhan Securities Co., Ltd.(*3) 43,821,577 38,479,027 5,342,550 44,446,803 39,421,314 5,025,489
Shinhan Life Insurance Co., Ltd. 66,753,920 63,271,167 3,482,753 70,535,556 65,382,992 5,152,564
Shinhan Capital Co., Ltd. 13,035,892 11,048,996 1,986,896 10,921,698 9,189,041 1,732,657
Jeju Bank 7,320,304 6,798,450 521,854 6,944,214 6,428,269 515,945
Shinhan Credit Information Co.,
Ltd.(*4) - - - 31,377 12,334 19,043
Shinhan Alternative Investment
Management Inc.(*5) - - - 114,973 70,449 44,524
Shinhan Asset Management Co.,
Ltd.(*5) 319,511 88,519 230,992 242,760 40,181 202,579
SHC Management Co., Ltd. 9,746 - 9,746 9,636 - 9,636
Shinhan DS 107,366 59,833 47,533 92,591 52,804 39,787
Shinhan Savings Bank 3,043,506 2,723,713 319,793 2,644,942 2,413,176 231,766
Shinhan Asset Trust Co., Ltd. (*6) 435,815 110,981 324,834 373,488 122,890 250,598
Shinhan AITAS Co., Ltd. 94,725 10,147 84,578 90,116 9,786 80,330
Shinhan REITs Management Co.,
Ltd. 58,610 5,559 53,051 63,026 10,584 52,442
Shinhan AI Co., Ltd. 41,431 2,264 39,167 44,031 2,563 41,468
Shinhan Venture Investment Co.,
Ltd. 140,310 63,309 77,001 98,914 23,331 75,583
Shinhan EZ General Insurance,
Ltd. 241,096 115,448 125,648 - - -
(*1) The consolidated financial statements of the consolidated subsidiaries are based on consolidated financial
statements, if applicable.
(*2) Trusts, beneficiary certificates, securitization special limited liability companies, associates and private equity
investment specialists that are not actually operating their own business are excluded.
(*4) On July 28, 2022, the Company disposed 100% of shares to Shinhan Card.
(*5) Shinhan Asset Management Co., Ltd. and Shinhan Alternative Investment Management Inc. have merged on
January 5, 2022 to form a holding company named Shinhan Asset Management Co., Ltd.
(*6) The Group has acquired remaining shares of Asia Trust Co., Ltd. during the period, and Asia Trust Co., Ltd.
became the Group’s wholly-owned subsidiary. Asia Trust Co., Ltd. has changed its name to Shinhan Asset Trust Co.,
Ltd.
115
6. Investment in subsidiaries (continued)
(b) The summarized income information of the controlling company and the Group’s major subsidiaries for the years ended December 31, 2022 and 2021 is as follows:

Operating Net Comprehensive Operating Net Comprehensive
Investees(*1),(*2) Revenue Income(*3) Income(*3) Revenue Income(*3) Income(*3)
Shinhan Financial Group(separate) W 1,806,604 1,249,251 1,251,294 1,875,675 1,413,956 1,413,675
Shinhan Bank 35,514,461 3,045,732 2,394,238 23,540,347 2,494,894 2,396,829
Shinhan Card Co., Ltd. 4,761,181 644,555 671,113 4,359,627 676,297 710,090
Shinhan Securities Co., Ltd.(*4) 10,548,842 412,339 427,451 7,592,350 320,662 366,000
Shinhan Life Insurance Co., Ltd. 9,412,664 463,593 (1,659,016) 7,079,569 174,811 (162,161)
Orange Life Insurance Co., Ltd.(*5) - - - 2,112,353 216,826 (96,157)
Shinhan Capital Co., Ltd. 922,592 303,276 307,988 783,890 274,855 275,760
Jeju Bank 275,582 22,820 11,658 204,543 18,446 11,739
Shinhan Credit Information Co., Ltd.(*6) 20,705 1,029 1,450 42,417 1,936 2,079
Shinhan Alternative Investment Management Inc.(*7) - - - 28,010 9,163 9,163
Shinhan Asset Management Co., Ltd.(*7) 174,242 37,064 36,892 107,598 32,152 32,066
SHC Management Co., Ltd. - 110 110 - (7) (7)
Shinhan DS 279,453 6,835 7,739 244,445 4,100 5,653
Shinhan Savings Bank 241,013 38,384 37,884 163,643 30,310 30,037
Shinhan Asset Trust Co., Ltd. (*8) 152,563 73,654 74,236 144,971 75,823 75,972
Shinhan AITAS Co., Ltd. 55,270 9,500 9,500 53,005 9,816 9,816
Shinhan REITs Management Co., Ltd. 11,433 540 609 16,440 8,481 8,469
Shinhan AI Co., Ltd. 10,668 (2,217) (2,301) 12,106 478 455
Shinhan Venture Investment Co., Ltd. 19,839 1,526 1,418 32,134 15,929 15,750
Shinhan EZ General Insurance, Ltd.(*9) 42,827 (10,497) (10,129) - - -
116
(b) The summarized income information of the controlling company and the Group’s major subsidiaries for the years ended December 31, 2022 and 2021 is as follows (continued):
(*1) The consolidated financial statements of the consolidated subsidiaries are based on consolidated financial statements, if applicable.
(*2) Trusts, beneficiary certificates, securitization special limited liability companies, associates and private equity investment specialists that are not actually operating their own
business are excluded.
(*3) This amount includes non-controlling interests.
(*5) The amount as of December 31, 2021 is revenue, net income (loss) and total comprehensive income for the six months prior to the merger with Shinhan Life Insurance Co., Ltd.
(*6) On July 28, 2022, the Company disposed 100% of shares to Shinhan Card Co., Ltd. The amount as of December 31, 2022 is revenue, net income (loss) and total comprehensive
income for the six month period ended before the disposal of Shinhan Card Co., Ltd.
(*7) Shinhan Asset Management Co., Ltd. and Shinhan Alternative Investment Management Inc. merged on January 5, 2022. The company name after the merger is Shinhan Asset
Management Co., Ltd.
(*8) The Group has acquired remaining shares of Asia Trust Co., Ltd. during the period, and Asia Trust Co., Ltd. became the Group’s wholly-owned subsidiary. Asia Trust Co., Ltd.
has changed its name to Shinhan Asset Trust Co., Ltd.
(*9) For the acquired company, the amount is from the consolidated statements of comprehensive income for the period after the acquisition point.
117
(c) Change in the scope of consolidation
i) Change in consolidated subsidiaries for the year ended December 31, 2022 are as follows:
Company Description
Included Shinhan EZ General Insurance, Ltd. Newly acquired subsidiary
Excluded Shinhan Alternative Investment Management Extinguished due to merger with
Inc. Shinhan Asset Management Co., Ltd.
(*) Subsidiaries such as trust, beneficiary certificate, corporate restructuring fund and private equity fund which are
not actually operating their own business are excluded.
ii) Change in consolidated subsidiaries for the year ended December 31, 2021 are as follows:
Company Description
Included Shinhan Life Insurance Vietnam Co., Ltd. Newly acquired subsidiary
Included Shinhan CubeOn Co., Ltd. Newly acquired subsidiary
Excluded Orange Life Insurance Co., Ltd. Extinguished due to merger with
Shinhan Life Insurance Co., Ltd.
(*) Subsidiaries such as trust, beneficiary certificate, corporate restructuring fund and private equity fund which
are not actually operating their own business are excluded.
118
7. Operating segments
(a) Segment information
The general descriptions by operating segments as of December 31, 2022 are as follows:
Segment Description
Banking Credit to customers, lending to and receiving deposits from

customers, and its accompanying work
Credit card Sales of credit cards, cash services, card loan services, installment
financing, lease and its accompanying work
Securities Securities trading, consignment trading, underwriting and its
accompanying work
Life insurance Life insurance business and its accompanying work
Credit Facility rental, new technology business financing, others and its
accompanying work
Others Business segments that do not belong to the above segments, such as
real estate trust, investment advisory services, venture business
investment and other remaining business
119
7. Operating segments (continued)
(b) The following tables provide information of income and expense for each operating segment for the years ended December 31, 2022 and 2021:
December 31, 2022

Consolidation
Banking Credit card Securities Life insurance Credit Others adjustment Total
Net interest income W 8,358,526 1,798,005 428,420 1,648,339 260,011 154,722 (184,342) 12,463,681
Net fees and commission income 801,109 702,392 484,632 107,385 30,587 394,319 5,142 2,525,566
Reversal of (provision for) allowance
for credit loss (621,690) (560,264) 546 (16,942) (19,803) (72,859) (1,284) (1,292,296)
General and administrative expenses (3,761,767) (777,496) (690,539) (499,228) (80,320) (401,604) 197,440 (6,013,514)
Other income (expense), net (715,837) (283,011) (102,084) (625,653) 158,560 87,985 (315,318) (1,795,358)
Operating income 4,060,341 879,626 120,975 613,901 349,035 162,563 (298,362) 5,888,079
Equity method income (loss) 22,301 7,115 70,270 4,222 54,937 (735) (36,413) 121,697
Income tax expense 1,030,445 227,769 145,301 134,644 98,468 35,006 (54,545) 1,617,088
Profit for the year W 2,974,716 738,391 412,339 463,593 303,275 132,375 (292,526) 4,732,163
Controlling interest W 2,973,996 735,204 412,496 463,593 303,275 132,375 (378,647) 4,642,292
Non-controlling interests 720 3,187 (157) - - - 86,121 89,871
120
(b) The following tables provide information of income and expense for each operating segment for the years ended December 31, 2022 and 2021 (continued):
December 31, 2021

Consolidation
Net interest income W 6,738,165 1,799,153 517,296 1,620,266 231,679 68,991 (206,225) 10,769,325
Net fees and commission income 818,426 634,716 601,793 170,781 28,812 415,212 5,257 2,674,997
Reversal of (provision for) allowance
for credit loss (364,291) (442,668) (80,134) (21,760) (34,064) (35,421) 3,653 (974,685)
General and administrative expenses (3,409,144) (790,733) (696,278) (557,292) (80,056) (366,149) 156,564 (5,743,088)
Other income (expense), net (305,508) (179,695) 234,209 (660,416) 194,564 177,912 (235,519) (774,453)
Operating income 3,477,648 1,020,773 576,886 551,579 340,935 260,545 (276,270) 5,952,096
Equity method income (loss) 25,401 (1,109) 65,341 (739) 29,644 16,201 23,861 158,600
Income tax expense 821,201 266,798 94,864 139,106 94,329 71,120 (16,382) 1,471,036
Profit for the year W 2,417,880 771,757 320,662 391,637 274,855 205,880 (270,043) 4,112,628
Controlling interest W 2,417,361 770,457 320,783 391,637 274,855 205,880 (361,719) 4,019,254
Non-controlling interests 519 1,300 (121) - - - 91,676 93,374
121
(c) Interest gains and losses from segment external customers and cross-sector interest gains and losses for the years ended December 31, 2022 and 2021 are as follows:
December 31, 2022

Consolidation
Banking Credit card Securities Life insurance Credit Others adjustment(*) Total
Net interest income from:
External customers (*) W 8,366,892 1,857,351 442,554 1,644,953 269,230 73,068 (190,367) 12,463,681
Internal transactions (8,366) (59,346) (14,134) 3,386 (9,219) 81,654 6,025 -
W 8,358,526 1,798,005 428,420 1,648,339 260,011 154,722 (184,342) 12,463,681
(*) Consolidated adjustment to net interest income from external customers is from the securities and others which were measured in fair values as a part of business combination accounting.
December 31, 2021

Consolidation
Banking Credit card Securities Life insurance Credit Others adjustment(*) Total
Net interest income from:
External customers (*) W 6,741,279 1,849,209 534,969 1,617,186 241,035 781 (215,134) 10,769,325
Internal transactions (3,114) (50,056) (17,673) 3,080 (9,356) 68,210 8,909 -
W 6,738,165 1,799,153 517,296 1,620,266 231,679 68,991 (206,225) 10,769,325
(*) Consolidated adjustment to net interest income from external customers is from the securities and others which were measured in fair values as a part of business combination accounting.
122
(d) The following tables provide information of net fees and commission income (expense) of each operating segment for the years ended December 31, 2022 and 2021.
December 31, 2022

Consolidation
Net fees and commission income from:
External customers W 844,888 734,900 496,097 121,229 26,737 301,715 - 2,525,566
Internal transactions (43,779) (32,508) (11,465) (13,844) 3,850 92,604 5,142 -
W 801,109 702,392 484,632 107,385 30,587 394,319 5,142 2,525,566
December 31, 2021

Consolidation
Net fees and commission income from:
External customers W 863,879 681,129 615,414 181,345 27,351 305,879 - 2,674,997
Internal transactions (45,453) (46,413) (13,621) (10,564) 1,461 109,333 5,257 -
W 818,426 634,716 601,793 170,781 28,812 415,212 5,257 2,674,997
123
(e) Financial information of geographical area
The following table provides information of income from external consumers by geographical area for the years
ended December 31, 2022 and 2021.

Domestic W 5,047,406 5,404,278
Overseas 840,673 547,818
W 5,888,079 5,952,096
The following table provides information of non-current assets by geographical area as of December 31, 2022 and
2021.

Domestic W 9,825,529 10,029,650
Overseas 356,512 336,687
W 10,182,041 10,366,337
(*) Non-current assets comprise property and equipment, intangible assets and investment properties.
124
8. Cash and due from banks at amortized cost
(a) Cash and due from banks at amortized cost as of December 31, 2022 and 2021 are as follows:

Cash and cash equivalents:
Cash W 2,304,480 4,194,831
Cash equivalents - 26,560
2,304,480 4,221,391
Deposits denominated in Korean won:
Reserve deposits 8,647,429 9,851,064
Time deposits 2,205,832 892,053
Other 2,571,005 2,701,873
13,424,266 13,444,990
Deposits denominated in foreign currency:
Deposits 8,516,315 6,731,190
Time deposits 3,153,208 2,148,955
Other 2,153,066 1,924,601
13,822,589 10,804,746
Allowance for credit losses (19,100) (17,723)

W 29,532,235 28,453,404
(b) Restricted due from banks in accordance with Related Regulation or Acts as of December 31, 2022 and 2021
are as follows:
December 31, 2022 December 31, 2021 Related Regulations or Acts

Deposits denominated
in Korean won:
Reserve deposits W 8,647,429 9,851,064 Article 55 of the Bank of Korea Act
Article 74 of the Capital Markets and
Other 2,192,566 1,174,670
Financial Investment Business Act, etc.
10,839,995 11,025,734
Articles of the Bank of Korea Act,

Deposits denominated
2,963,995 2,870,908 New York State Banking Act, derivatives
in foreign currency
related, etc.
W 13,803,990 13,896,642
125
9. Financial assets at fair value through profit or loss
(a) Financial assets at fair value through profit or loss as of December 31, 2022 and 2021 are as follows:

Debt instruments:
Governments W 4,304,950 3,961,045
Financial institutions 11,616,813 13,449,550
Corporations 7,632,222 9,618,302
Stocks with put option 353,569 627,275
Equity investment with put option 3,185,222 2,625,297
Beneficiary certificates 12,169,688 13,386,212
Commercial papers 4,939,927 7,042,045
CMA 3,850,613 3,591,822
Others(*) 3,475,213 3,925,599
51,528,217 58,227,147
Equity instruments:
Stocks 2,410,017 2,182,829
Equity investment 38,515 12,962
Others 175,656 179,524
2,624,188 2,375,315
W 54,152,405 60,602,462
Other:
Loans at FVTPL W 2,389,180 1,683,344
Due from banks at fair value 26,116 34,262
Gold/silver deposits 75,969 83,691
W 56,643,670 62,403,759
(*) As of December 31, 2022 and 2021, restricted reserve for claims of customers’ deposits (trusts) are W 1,705,724
million and W 2,080,626 million, respectively.
126
9. Financial assets at fair value through profit or loss (continued)
(b) Financial assets to which overlay approach are applied in accordance with K-IFRS No. 1109 ‘Financial
Instruments’ and K-IFRS No. 1104 ‘Insurance Contracts’ as of December 31, 2022 and 2021 are as follows:
Due from banks at fair value through profit or loss W 26,116 34,262
Securities at fair value through profit or loss 4,631,973 4,903,275
W 4,658,089 4,937,537
A financial asset is eligible for designation for the overlay approach, if it is measured at fair value through profit or
loss applying K-IFRS No. 1109 but would not have been measured at fair value through profit or loss in its entirety
applying K-IFRS No. 1039; and it is not held in respect of an activity that is not associated with contracts within the
scope of K-IFRS No. 1104.
The reclassified amounts between profit or loss and other comprehensive income due to the overlay approach as of
and for the years ended December 31, 2022 and 2021 are as follows:
December 31, 2022

Other comprehensive
Profit or loss income(*)
By K-IFRS No. By K-IFRS No.
1109 1039 Amount Tax effect
Net gain (loss) on valuation of financial
assets at fair value through profit or loss W (187,706) 33,508 (221,214) 58,622
Net gain (loss) on disposal of financial
assets at fair value through profit or loss 39,547 131,544 (91,997) 24,379
W (148,159) 165,052 (313,211) 83,001
(*) The amount of the policyholders equity adjustment for the reclassification of other comprehensive income is W
13,277 million for the year ended December 31, 2022.
December 31, 2021

Other comprehensive
Profit or loss income(*)
By K-IFRS No. By K-IFRS No.
1109 1039 Amount Tax effect
Net gain (loss) on valuation of financial
assets at fair value through profit or loss W 130,170 83,288 46,882 (12,893)
Net gain (loss) on disposal of financial
assets at fair value through profit or loss (2,668) 87,217 (89,885) 24,719
W 127,502 170,505 (43,003) 11,826
(*) The amount of the policyholders equity adjustment for the reclassification of other comprehensive income is W
11,079 million for the year ended December 31, 2021.
127
10. Derivatives
(a) The notional amounts of derivatives outstanding as of December 31, 2022 and 2021 are as follows:

Foreign currency related:
Over the counter:
Currency forwards W 129,544,881 145,786,842
Currency swaps 40,557,913 36,532,622
Currency options 1,327,752 2,270,594
171,430,546 184,590,058
Exchange traded:
Currency futures 719,618 641,104
172,150,164 185,231,162
Interest rates related:
Over the counter:
Interest rate forwards and swaps 37,170,647 35,518,719
Interest rate options 226,924 258,460
37,397,571 35,777,179
Exchange traded:
Interest rate futures 2,783,937 3,293,821
Interest rate options - 54,890
Interest rate swaps(*) 94,803,271 72,898,275
97,587,208 76,246,986
134,984,779 112,024,165
Credit related:
Over the counter:
Credit swaps 5,155,334 4,737,329
Equity related:
Over the counter:
Equity swaps and forwards 4,008,263 2,073,995
Equity options 878,122 677,824
4,886,385 2,751,819
Exchange traded:
Equity futures 2,443,194 1,678,070
Equity options 1,444,098 3,298,673
3,887,292 4,976,743
8,773,677 7,728,562
Commodity related:
Over the counter:
Commodity swaps and forwards 898,332 789,930
Commodity options 8,000 11,500
906,332 801,430
Exchange traded:
Commodity futures and options 69,373 158,550
975,705 959,980
Hedge:
Currency forwards 1,249,589 1,279,598
Currency swaps 4,647,279 3,726,939
Interest rate forwards and swaps 16,475,525 8,695,960
22,372,393 13,702,497
W 344,412,052 324,383,695
(*) The notional amounts of derivatives outstanding that will be settled in the ‘Central Counter Party (CCP)’ system.
128
10. Derivatives (continued)
(b) Fair values of derivative instruments as of December 31, 2022 and 2021 are as follows:
Assets Liabilities Assets Liabilities
Over the counter:
Currency forwards W 3,089,759 2,838,793 2,183,315 1,797,419
Currency swaps 1,626,567 1,807,229 651,292 748,302
Currency options 14,776 13,603 12,218 11,591
4,731,102 4,659,625 2,846,825 2,557,312
Exchange traded:
Currency futures 17 928 12 210
4,731,119 4,660,553 2,846,837 2,557,522
Over the counter:
Interest rate forwards and swaps 772,513 1,062,772 166,855 303,227
Interest rate options 5,169 1,983 3,748 611
777,682 1,064,755 170,603 303,838
Exchange traded:
Interest rate futures 2,555 972 1,701 1,828
Interest rate options - - 83 -
2,555 972 1,784 1,828
780,237 1,065,727 172,387 305,666
Credit related:
Over the counter:
Credit swaps 423,966 19,235 493,829 65,103
Equity related:
Over the counter:
Equity swap and forwards 169,504 393,810 28,803 69,880
Equity options 2,704 1,139 3,884 8,671
172,208 394,949 32,687 78,551
Exchange traded:
Equity futures 31,035 100,490 817 19,903
Equity options 11,414 145,895 6,324 167,237
42,449 246,385 7,141 187,140
214,657 641,334 39,828 265,691
Commodity related:
Over the counter:
Commodity swaps and forwards 10,983 136,701 18,557 3,149
Commodity options - 1,517 - 8,406
10,983 138,218 18,557 11,555
Exchange traded:
Commodity futures and options 2,530 514 2,688 2,218
13,513 138,732 21,245 13,773
Hedge:
Currency forwards 23,143 37,757 106 46,139
Currency swaps 158,297 72,367 63,560 79,407
Interest rate forwards and swaps 116,864 1,069,000 161,397 253,263
298,304 1,179,124 225,063 378,809
W 6,461,796 7,704,705 3,799,189 3,586,564
129
(c) Gain or loss on valuation of derivatives for the years ended December 31, 2022 and 2021 are as follows:

Over the counter:
Currency forwards W 44,245 268,310
Currency swaps (143,586) (201,500)
Currency options 4,247 2,007
(95,094) 68,817
Exchange traded:
Currency futures (48) (199)
(95,142) 68,618
Over the counter:
Interest rate forwards and swaps (173,277) (142,703)
Interest rate options 285 792
(172,992) (141,911)
Exchange traded:
Interest rate futures and others 1,582 (4)
(171,410) (141,915)
Credit related:
Over the counter:
Credit swaps (25,562) 192,729
Equity related:
Over the counter:
Equity swap and forwards (192,888) (176,430)
Equity options 3,360 3,307
(189,528) (173,123)
Exchange traded:
Equity futures (69,455) (19,408)
Equity options (27,932) 32,555
(97,387) 13,147
(286,915) (159,976)
Commodity related:
Over the counter:
Commodity swaps and forwards (148,591) (19,097)
Commodity options 5,840 (4,956)
(142,751) (24,053)
Exchange traded:
Commodity futures and options 2,014 469
(140,737) (23,584)
Hedge (741,873) (203,563)

W (1,461,639) (267,691)
130
(d) Impact of hedge accounting on the consolidated financial statements
i) Gains(losses) on fair value hedged items and hedging instruments attributable to the hedged ineffectiveness for the
years ended December 31, 2022 and 2021 are as follows:
December 31, 2022

Gains on Losses on Hedge ineffectiveness
fair value hedges fair value hedges recognized in profit
(hedged items) (hedging instruments) or loss (*2)
Fair value hedges:
Interest rate risk(*1) W 697,330 (728,397) (31,067)
Foreign exchange risk(*1) 20,748 (22,056) (1,308)
Stock price volatility risk (4,762) 3,411 (1,351)
W 713,316 (747,042) (33,726)
December 31, 2021

Gains on Losses on Hedge ineffectiveness
fair value hedges fair value hedges recognized in profit
(hedged items) (hedging instruments) or loss (*2)
Fair value hedges:
Interest rate risk(*1) W 273,219 (281,649) (8,430)
Foreign exchange risk(*1) 26,547 (32,829) (6,282)
W 299,766 (314,478) (14,712)
(*1) The related account categories are presented as interest rate swap assets / liabilities and currency swap assets.
(*2) Ineffective portion of hedge: the difference between hedging instruments and hedged items.
131
(d) Impact of hedge accounting on the consolidated financial statements (continued)
ii) Due to the ineffectiveness of hedge of cash flow risk and hedge of net investment in foreign operations during the
year, the amounts recognized in the income statement and other comprehensive income are as follows:
December 31, 2022

Gains (losses) on hedges Hedge ineffectiveness From cash flow hedge
recognized in other recognized in profit reserve to profit or loss
comprehensive income or loss(*2) reclassified amount
Cash flow hedges:
Interest rate risk(*1) W (132,203) (47,854) (65)
Foreign exchange risk(*1) 32,159 (54,969) 124,214
Discontinuation of
cash flow hedges - - 9,270
Hedge of net investments:
Foreign exchange risk(*1) (25,793) (4,096) -
W (125,837) (106,919) 133,419
December 31, 2021

Gains (losses) on hedges Hedge ineffectiveness From cash flow hedge
recognized in other recognized in profit reserve to profit or loss
comprehensive income or loss(*2) reclassified amount
Cash flow hedges:
Interest rate risk(*1) W 15,492 (49,882) -
Foreign exchange risk(*1) 14,439 (14,955) 24,464
Discontinuation of
cash flow hedges - - 8,799
Hedge of net investments:
Foreign exchange risk(*1) (74,525) (2,094) -
W (44,594) (66,931) 33,263
(*1) The related account categories are presented as interest rate swap assets / liabilities and currency swap assets
/ liabilities, currency forwards assets / liabilities and borrowings.
(*2) Ineffective portion of hedge: The difference between hedging instruments and hedged items.
132
(e) Effect of hedge accounting on financial statement, statement of comprehensive income, statement of changes in
equity
i) Purpose and strategy of risk avoidance
The Group transacts with derivative financial instruments to hedge its interest rate risk and currency risk arising from
the assets and liabilities of the Group. The Group applies the fair value hedge accounting for the changes in the market
interest rates of the Korean won structured notes, foreign currency generated financial debentures, structured deposits
in foreign currencies and foreign currency investment receivables; and cash flow hedge accounting for interest rate
swaps and currency swaps to hedge cash flow risk due to interest rates and foreign exchange rates of the Korean won
debt, the Korean won bonds, foreign currency bonds, etc. In addition, in order to hedge the exchange rate risk of the
net investment in overseas business, the Group applies the net investment hedge accounting for foreign operations
using currency forward and non-derivative financial instruments.
ii) Nominal amounts and average hedge ratios for hedging instruments as of December 31, 2022 and 2021 are as
follows:
December 31, 2022

Less than 1~2 2~3 3~4 4~5 More than
1 year years years years years 5 years Total
Interest risk:
Nominal values: W 5,338,313 3,023,185 612,113 2,114,152 819,140 4,568,622 16,475,525
Average price
condition(*1) 0.72% 0.82% 2.53% 1.52% 1.48% 0.68% 0.94%
Average hedge ratio: 100% 100% 100% 100% 100% 100% 100%
Exchange risk:(*2)
Nominal values: 2,620,663 610,676 1,108,785 1,900,980 942,804 - 7,183,908
Average hedge ratio: 100% 100% 100% 100% 100% - 100%
(*1) Interest rate swaps consist of 3M CD, 3M USD Libor, 3M Euribor, and 3M AUD Bond.
(*2) The average exchange rates of net investment hedge instruments are USD/KRW 1,198.11, JPY/KRW 10.13,
EUR/KRW 1,336.97, GBP/KRW 1,484.00, AUD/KRW 812.44, CAD/KRW 948.79, SGD/KRW 859.87,
CNY/KRW 190.96, SEK/KRW 125.49.
December 31, 2021

Less than 1~2 2~3 3~4 4~5 More than
Interest risk:
Nominal values: W 693,057 1,256,392 641,413 158,833 1,589,729 4,356,536 8,695,960
Average price
condition(*1) 0.88% 1.21% 1.30% 1.00% 1.00% 0.66% 0.87%
Exchange risk:(*2)
Nominal values: 2,328,042 2,164,591 568,991 699,433 480,878 22,525 6,264,460
(*1) Interest rate swaps consist of 3M CD, 3M USD Libor, 3M Euribor, and 3M AUD Bond.
(*2) The average exchange rates of net investment hedge instruments are USD/KRW 1,143.95, JPY/KRW 10.53,
EUR/KRW 1,288.52, GBP/KRW 1,484.00, AUD/KRW 817.06, CAD/KRW 868.95, SGD/KRW 859.87,
CNY/KRW 174.40, SEK/KRW 124.85.
133
equity (continued)
iii) Effect of derivatives on statement financial position, statement of comprehensive income, statement of changes in
equity
December 31, 2022

Changes in fair
Carrying value Carrying value of value in the
Nominal amount of asset(*) liabilities(*) period
Fair value hedges
Interest rate forward and swap W 13,530,243 77,757 895,005 (740,190)
Currency forward 113,126 4,038 635 1,780
Cash flow hedges

Interest rate swap 2,945,282 39,107 173,995 (126,075)
Currency swap 4,647,281 158,297 72,367 119,277
Currency forward 883,003 15,708 35,976 (3,136)
Hedge of net investments in

foreign operations
Currency forward 253,460 3,397 1,146 (773)
Borrowings 1,287,039 - 1,282,361 (29,116)
(*) The related account categories are presented as interest rate swap assets / liabilities and currency forward assets
and liabilities.
December 31, 2021

Changes in fair
Carrying value Carrying value of value in the
Nominal amount of asset(*) liabilities(*) period
Fair value hedges
Interest rate swap W 7,079,468 156,710 236,758 (277,450)
Currency forward 176,369 - 4,995 (8,835)
Cash flow hedges

Interest rate swap 1,616,492 4,687 16,505 23,257
Currency swap 3,726,939 63,560 79,407 156,271
Currency forward 866,129 106 31,486 (63,659)
Hedge of net investments in

foreign operations
Currency forward 237,100 - 9,658 (14,948)
Borrowings 1,257,923 - 1,256,241 (61,672)
(*) The related account categories are presented as interest rate swap assets / liabilities and currency forward assets
and liabilities.
134
equity (continued)
iv) Effect of hedging items on statement financial position, statement of comprehensive income, statement of changes
in equity
December 31, 2022
Assets of Liabilities of
Cumulative Cumulative Foreign
Carrying Carrying fair value fair value Changes if Cash flow currency
value of value of hedge hedge fair value in hedge conversion
asset(*) liabilities(*) adjustment adjustment the year reserve reserves
Fair value hedges
Interest rate risk
Borrowings and others W 505,668 12,711,595 69,687 (861,128) 708,439 - -
Foreign exchange risk
Securities in foreign
currency 205,470 - - - (4,002) - -
Cash flow hedges
Interest rate risk
Debentures in won and
debentures in foreign
currency 475,027 1,689,360 - - 31,830 (58,956) -
Debentures in foreign
currency and loans in
foreign currency 2,778,511 2,843,059 - - 52,361 (1,468) -
Hedge of net
investments in
foreign operations
Net assets in foreign
operation - - - - 25,793 - (40,834)
(*) The related account categories are presented as interest rate swap assets / liabilities and currency forwards.
December 31, 2021

Assets of Liabilities of
Cumulative Cumulative Foreign
Carrying Carrying fair value fair value Changes if Cash flow currency
value of value of hedge hedge fair value in hedge conversion
asset(*) liabilities(*) adjustment adjustment the year reserve reserves
Fair value hedges
Interest rate risk
Borrowings and others W 704,942 6,370,330 6,207 (85,441) 274,005 - -
Securities in foreign
currency 415,693 - - - 23,109 - -
Cash flow hedges
Interest rate risk
Debentures in won and
debentures in foreign
currency 607,062 1,714,303 - - 22,432 67,553 -
Debentures in foreign
currency and loans in
foreign currency 2,848,303 2,782,574 - - 336,281 (19,296) -
Hedge of net
investments in foreign
operations
Net assets in foreign
operation - - - - 74,525 - (66,626)
(*) The related account categories are presented as interest rate swap assets / liabilities and currency forwards.
135
(f) Hedge relationships affected by an interest rate index
The revised Standard requires exceptions to the analysis of future information in relation to the application of hedge
accounting, while uncertainty exists due to movements of the interest rate indicator reform. The exception assumes
that when assessing whether the expected cash flows that comply with existing interest rate indicators are highly
probable, whether there is an economic relationship between the hedged item and the hedging instrument, and
whether there is a high hedge effectiveness between the hedged item and the hedging instrument, the interest rate
indicators that are based on the hedged item do not change due to the effect of the interest rate index reform. The
carrying value of the hedged item and the nominal amount of the hedging instrument related to the interest rate index
exposed to the hedging relationship due to the Group's reform of the interest rate index as of December 31, 2022 and
2021, are as follows:
December 31, 2022

Carrying value of Carrying value of hedged Nominal amount of
Interest rate index hedged item, Assets item, Liabilities hedging instrument
KRW 3M CD (*1) W - 9,247,047 9,390,000
USD 1M LIBOR (*2) - 258,393 258,529
USD 3M LIBOR(*1),(*2) 283,014 3,785,641 4,196,714
EURIBOR 1M - - -
EURIBOR 3M 3,236 269,826 274,294
W 286,250 13,560,907 14,119,537
(*1) Include nominal amount of the hedging instrument related to the CMS(Constant Maturity Swap) calculated
based on the CD and LIBOR rate.
(*2) Exclude the nominal amount that will mature before the end of June 30, 2023, when LIBOR interest rate
calculation is discontinued.
December 31, 2021

Carrying value of Carrying value of hedged Nominal amount of
Interest rate index hedged item, Assets item, Liabilities hedging instrument
KRW 3M CD (*1) W - 2,509,045 2,580,000
USD 1M LIBOR (*2) - 241,192 241,842
USD 3M LIBOR(*1),(*2) 539,197 3,589,452 4,187,018
EURIBOR 1M - 220,992 221,050
EURIBOR 3M 25,094 267,830 293,972
W 564,291 6,828,511 7,523,882
(*1) Include nominal amount of the hedging instrument related to the CMS(Constant Maturity Swap) calculated
based on the CD and LIBOR rate.
(*2) Exclude the nominal amount that will mature before the end of June 30, 2023, when LIBOR interest rate
calculation is discontinued.
The USD LIBOR interest rate will be replaced by a SOFR (Secured Overnight Financing Rate) based on actual
transactions. In Korea, the “Korea Overnight Financing Repo Rate (KOFR)” was finally selected as the risk-free index
interest rate. The Group has assumed that in this hedging relationship, the spread changed on the basis of SOFR,
KOFR would be similar to the spread included in the interest rate swap and forward used as the hedging instrument
after LIBOR rate is suspended. The Group does not assume any changes in other conditions.
136
11. Securities at fair value through other comprehensive income and securities at amortized cost
(a) Details of securities at FVOCI and securities at amortized cost as of December 31, 2022 and 2021 are as follows:

Securities at FVOCI:
Debt securities:
Government bonds W 27,197,987 25,687,070
Financial institutions bonds 19,030,714 19,702,292
Corporate bonds and others 15,865,207 18,417,557
62,093,908 63,806,919
Equity securities(*):
Stocks 1,475,153 922,579
Equity investments 3,833 4,118
Others 88,825 104,707
1,567,811 1,031,404
63,661,719 64,838,323
Securities at amortized cost:
Debt securities:
Government bonds 38,371,463 34,679,301
Financial institutions bonds 6,530,386 3,423,536
Corporate bonds and others 13,069,644 11,827,239
57,971,493 49,930,076
W 121,633,212 114,768,399
(*) Equity securities in the table above are classified as other comprehensive income - equity securities designated as
fair value items, and other comprehensive income and fair value options are exercised for the purpose of holding as
required by the policy.
137
11. Securities at fair value through other comprehensive income and securities at amortized cost (continued)
(b) Changes in carrying value of debt securities at fair value through other comprehensive income and securities at amortized cost for the years ended December 31, 2022 and 2021
are as follows:
December 31, 2022

Debt securities at fair value through other comprehensive income Debt securities at amortized cost
12-month expected Life time expected 12-month expected Life time expected
credit loss credit loss Total credit loss credit loss Total
Beginning balance W 63,654,133 152,786 63,806,919 49,910,733 36,290 49,947,023

Transfer (from)to 12-month
expected credit loss 61,740 (61,740) - 18,544 (18,544) -
Transfer (from)to life time
expected credit loss (23,619) 23,619 - - - -
Net increase and
decrease(*) (1,690,349) (47,467) (1,737,816) 8,048,071 (7,230) 8,040,841
Business
combination (Note 47) 24,805 - 24,805 - - -
Ending balance W 62,026,710 67,198 62,093,908 57,977,348 10,516 57,987,864
(*) Included the effects from changes in purchase, disposal, repayment, valuation, changes in foreign exchange rate and amortization of fair value adjustments recognized through
business combination accountings and the others.
138
(b) Changes in carrying value of debt securities at fair value through other comprehensive income and securities at amortized cost for the years ended December 31, 2022 and 2021
are as follows (continued):
December 31, 2021

Debt securities at fair value through other comprehensive income Debt at amortized cost
12-month expected Life time expected 12-month expected Life time expected
credit loss credit loss Total credit loss credit loss Total
Beginning balance W 57,142,298 267,135 57,409,433 47,293,109 - 47,293,109

expected credit loss 51,055 (51,055) - - - -
expected credit loss (35,665) 35,665 - (35,505) 35,505 -
Net increase and
decrease(*) 6,496,445 (98,959) 6,397,486 2,653,129 785 2,653,914
Ending balance W 63,654,133 152,786 63,806,919 49,910,733 36,290 49,947,023
(*) Included the effects from changes in purchase, disposal, repayment, valuation, changes in foreign exchange rate and amortization of fair value adjustments recognized through
business combination accountings and the others.
139
(c) Changes in allowance for credit loss of debt securities at fair value through other comprehensive income and securities at amortized cost for the years ended December 31, 2022
and 2021 are as follows:
December 31, 2022

12 months expected Life time expected 12 months expected Life time expected credit
credit loss credit loss Total credit loss loss Total
Beginning balance W 36,883 603 37,486 16,484 463 16,947

expected credit loss 166 (166) - 203 (203) -
expected credit loss (20) 20 - - - -
Provision (Reversal) (3,393) (355) (3,748) (197) (94) (291)
Disposal and others(*) (641) 11 (630) (276) (9) (285)
Ending balance W 32,995 113 33,108 16,214 157 16,371
(*) Included the effects from changes in debt restructuring, investment conversion, foreign exchange rate and the others.
140
(c) Changes in allowance for credit loss of debt securities at fair value through other comprehensive income and securities at amortized cost for the years ended December 31, 2022
December 31, 2021

12 months expected Life time expected 12 months expected Life time expected credit
credit loss credit loss Total credit loss loss Total
Beginning balance W 22,493 678 23,171 10,486 - 10,486

expected credit loss 33 (33) - - - -
expected credit loss (63) 63 - (216) 216 -
Provision (Reversal) 19,722 (25) 19,697 5,065 240 5,305
Disposal and others(*) (5,302) (80) (5,382) 1,149 7 1,156
Ending balance W 36,883 603 37,486 16,484 463 16,947
(*) Included the effects from changes in debt restructuring, investment conversion, foreign exchange rate and the others.
141
(d) Gain or loss on disposal of securities at fair value through other comprehensive income and securities at amortized
cost for the years ended December 31, 2022 and 2021 are as follows:

2022 2021
Gain on disposal of securities at FVOCI W 26,357 131,189

Loss on disposal of securities at FVOCI (153,750) (45,593)
Gain on disposal of securities at amortized cost(*) 4 24
Loss on disposal of securities at amortized cost(*) (105) (343)
W (127,494) 85,277
(*) The issuers of those securities have exercised the early redemption options and the others.
(e) Income or loss on equity securities at fair value through other comprehensive income
i) The Group recognizes dividends, amounting to W26,996 million and W24,216 million, related to equity securities
at fair value through other comprehensive income for the years ended December 31, 2022 and 2021, respectively.
ii) The details of disposal of equity securities designated at fair value through other comprehensive income for the
years ended December 31, 2022 and 2021 are as follows:

2022 2021
Stocks acquired by investment
conversion
Fair value at the date of disposal W 48,525 84,624
Cumulative net gain (loss) at the time of disposal 2,943 (42,058)
(*) The reason for the disposal is the disposal of stocks acquired by investment conversion.
142
12. Loans at amortized cost, etc.
(a) Loans at amortized cost for configuration by customer as of December 31, 2022 and 2021 are as follows:

Retail loans W 160,416,509 159,006,999
Corporate loans(*) 215,344,233 199,465,807
Public and other loans 3,788,040 3,468,917
Loans between banks 7,428,874 3,849,565
Credit card receivables 28,459,691 25,999,576
415,437,347 391,790,864
Discount (21,879) (30,001)
Deferred loan origination costs 526,906 543,361
415,942,374 392,304,224
Less: Allowance for credit loss (3,650,863) (3,167,068)
W 412,291,511 389,137,156
(*) Included loans for solo proprietor business, etc.
143
12. Loans at amortized cost, etc. (continued)
(b) Changes in carrying value of loans at amortized cost, etc. as of December 31, 2022 and 2021 are as follows:
i) Loans at amortized cost
December 31, 2022

Retail Corporate Credit card Others
12 months Life time Impaired 12 months Life time Impaired 12 months Life time Impaired 12 months Life time Impaired
expected expected financial expected expected financial expected expected financial expected expected financial
credit loss credit loss asset credit loss credit loss asset credit loss credit loss asset credit loss credit loss asset Total
Beginning balance W 150,861,783 8,149,050 457,616 169,874,897 28,830,466 930,757 21,346,418 4,166,803 457,582 6,542,444 668,657 17,751 392,304,224
Transfer (from) to 12
months expected credit
losses 3,402,319 (3,390,943) (11,376) 7,620,541 (7,612,945) (7,596) 431,252 (430,915) (337) 55,766 (55,766) - -
Transfer (from) to
lifetime expected
credit losses (4,240,767) 4,275,492 (34,725) (11,480,879) 11,491,902 (11,023) (764,938) 765,279 (341) (52,028) 52,030 (2) -
Transfer (from) to
credit- impaired
financial assets (255,175) (154,510) 409,685 (222,960) (489,488) 712,448 (115,976) (160,843) 276,819 (18) (12) 30 -
Net increase and
decrease(*1) 2,019,166 (385,941) 127,162 16,796,397 (164,011) (267,984) 2,689,877 (6,713) 352,143 3,821,009 767 181 24,982,053
Charge off(*2) - - (263,962) - - (249,453) - - (592,386) - - (1,121) (1,106,922)
Disposal - (1,151) (78,428) (17,000) (1,333) (136,419) - - - - - (2,748) (237,079)
Business combination
(Note 47) - - - - - - - - - 98 - - 98
Ending balance W 151,787,326 8,491,997 605,972 182,570,996 32,054,591 970,730 23,586,633 4,333,611 493,480 10,367,271 665,676 14,091 415,942,374
(*1) The amount is due to execution, collection, debt restructuring, investment conversion, exchange rate fluctuation, etc.
(*2) The amount of uncollected loans currently in recovery (principal and interest) is W 9,739,237 million, which is written off as of December 31, 2022.
144
(b) Changes in carrying value of loans at amortized cost, etc. as of December 31, 2022 and 2021 are as follows
(continued):
ii) Due from banks at amortized cost and other financial assets
December 31, 2022

12 month Life time
expected expected Impaired
credit loss credit loss financial asset Total
Beginning balance W 47,549,159 104,650 79,094 47,732,903
Transfer (from) to 12 month expected credit
losses 16,401 (16,309) (92) -
Transfer (from) to lifetime expected credit
losses (23,870) 23,985 (115) -
Transfer (from) to credit- impaired financial
assets (10,008) (3,654) 13,662 -
Net increase and decrease(*) 1,630,953 57,051 21,722 1,709,726
Charge off - - (25,636) (25,636)
Disposal - - (1,123) (1,123)
Business combination (Note 47) 89,648 - - 89,648
Ending balance W 49,252,283 165,723 87,512 49,505,518
(*) The amount is due to execution, collection, debt restructuring, investment conversion, exchange rate fluctuation,
etc.
145
(b) Changes in carrying value of loans at amortized cost, etc. as of December 31, 2022 and 2021 are as follows (continued):
i) Loans at amortized cost (continued)
December 31, 2021

Retail Corporate Credit card Others
12 months Life time Impaired 12 months Life time Impaired 12 months Life time Impaired 12 months Life time Impaired
Beginning balance W 138,516,630 8,215,137 466,427 152,338,024 26,210,417 1,057,932 18,969,258 3,951,689 468,377 8,405,173 665,196 18,225 359,282,485
losses 3,200,712 (3,192,315) (8,397) 6,566,663 (6,494,160) (72,503) 390,658 (390,593) (65) 43,343 (43,343) - -
Transfer (from) to
lifetime expected
credit losses (3,482,541) 3,516,278 (33,737) (9,636,590) 9,659,114 (22,524) (674,961) 675,063 (102) (94,270) 94,272 (2) -
Transfer (from) to
credit- impaired
financial assets (194,192) (134,008) 328,200 (230,972) (322,361) 553,333 (110,704) (158,036) 268,740 (896) (2) 898 -
Net increase and
decrease(*1) 12,821,174 (255,318) 38,153 20,922,205 (222,364) (146,801) 2,772,167 88,680 287,576 (1,810,906) (47,466) (108) 34,446,992
Charge off(*2) - - (279,789) - - (299,661) - - (566,944) - - (1,218) (1,147,612)
Disposal - (724) (53,241) (84,433) (180) (139,019) - - - - - (44) (277,641)
Ending balance W 150,861,783 8,149,050 457,616 169,874,897 28,830,466 930,757 21,346,418 4,166,803 457,582 6,542,444 668,657 17,751 392,304,224
(*1) The amount is due to execution, collection, debt restructuring, investment conversion, exchange rate fluctuation, etc.
(*2) The amount of uncollected loans currently in recovery (principal and interest) is W 10,613,730 million, which is written off as of December 31, 2021.
146
(b) Changes in carrying value of loans at amortized cost, etc. as of December 31, 2022 and 2021 are as follows
(continued):
ii) Due from banks at amortized cost and other financial assets (continued)
December 31, 2021

12 month Life time
Beginning balance W 51,881,798 99,899 57,658 52,039,355
Transfer (from) to 12 month expected credit
losses 13,111 (13,079) (32) -
losses (29,026) 29,048 (22) -
assets (1,049) (11,797) 12,846 -
Net increase and decrease(*) (4,315,675) 580 37,428 (4,277,667)
Charge off - - (27,929) (27,929)
Disposal - (1) (855) (856)
Ending balance W 47,549,159 104,650 79,094 47,732,903
(*) The amount is due to execution, collection, debt restructuring, investment conversion, exchange rate fluctuation,
etc.
147
(c) Changes in allowance for credit loss of loans at amortized cost and other financial assets as of December 31, 2022 and 2021 are as follows:
December 31, 2022

Retail Corporate Credit cards Others
12 month Life time Impaired 12 month Life time Impaired 12 month Life time Impaired 12 month Life time Impaired
Beginning balance W 174,005 90,412 189,806 530,300 742,252 520,326 204,711 401,077 289,232 10,195 9,258 5,494 3,167,068
losses 17,317 (16,023) (1,294) 92,620 (90,661) (1,959) 24,579 (24,471) (108) 403 (403) - -
Transfer (from) to lifetime
expected credit losses (9,449) 26,014 (16,565) (62,583) 64,821 (2,238) (14,752) 14,892 (140) (122) 122 - -
Transfer (from) to credit-
impaired financial assets (4,702) (9,103) 13,805 (1,461) (66,033) 67,494 (1,094) (2,041) 3,135 (1) (5) 6 -
Provision (reversal) 95,929 84,402 244,633 (14,887) 159,287 103,935 101,644 254,090 209,353 3,405 246 2,387 1,244,424
Charge off - - (263,962) - - (249,453) - - (592,386) - - (1,121) (1,106,922)
Amortization of discount - - (5,923) - - (13,189) - - 7,307 - - - (11,805)
Disposal - (28) (22,676) - (5) (10,723) - - - - - (217) (33,649)
Collection - - 108,666 - - 55,441 - - 217,407 - - 145 381,659
Others(*) (8,264) (10,584) 19,121 15,187 30,896 17,605 (103,976) (172,074) 222,175 2 - - 10,088
Ending balance W 264,836 165,090 265,611 559,176 840,557 487,239 211,112 471,473 355,975 13,882 9,218 6,694 3,650,863
(*) Other changes are due to debt restructuring, investment conversion and changes in foreign exchange rate, etc.
148
(c) Changes in allowance for credit loss of loans at amortized cost and other financial assets as of December 31, 2022
December 31, 2022

12 months Life time
Beginning balance W 183,908 8,008 70,043 261,959
Transfer (from) to 12 months expected credit
losses 315 (274) (41) -
losses (740) 765 (25) -
assets (75) (1,267) 1,342 -
Provision 2,275 3,278 27,226 32,779
Charge off - - (25,636) (25,636)
Disposal - - (61) (61)
Collection - - 2,502 2,502
Others (*) 110,514 (70) (729) 109,715
Business combination (Note 47) 16 - - 16
Ending balance W 296,213 10,440 74,621 381,274
149
(c) Changes in allowance for credit loss of loans at amortized cost and other financial assets as of December 31, 2022 and 2021 are as follows (continued):
December 31, 2021

Retail Corporate Credit cards Others
12 month Life time Impaired 12 month Life time Impaired 12 month Life time Impaired 12 month Life time Impaired
Beginning balance W 149,034 86,048 198,440 568,614 665,083 481,244 203,908 374,453 306,690 11,434 9,601 6,417 3,060,966
losses 20,528 (19,794) (734) 85,187 (79,571) (5,616) 26,178 (26,149) (29) 200 (200) - -
Transfer (from) to lifetime
expected credit losses (9,078) 21,383 (12,305) (55,055) 63,834 (8,779) (14,471) 14,548 (77) (359) 359 - -
Transfer (from) to credit-
impaired financial assets (3,203) (7,112) 10,315 (1,830) (48,468) 50,298 (1,003) (1,503) 2,506 (7) - 7 -
Provision (reversal) 10,812 (1,321) 154,260 (68,403) 135,401 263,327 75,981 202,000 137,456 (1,342) (503) (598) 907,070
Charge off - - (279,789) - - (299,661) - - (566,944) - - (1,218) (1,147,612)
Amortization of discount - - (4,651) - - (12,894) - - 7,973 - - - (9,572)
Disposal - (1) (13,617) (6) - (14,528) - - - - - (1) (28,153)
Collection - - 103,316 - - 76,245 - - 207,631 - - 887 388,079
Others (*) 5,912 11,209 34,571 1,793 5,973 (9,310) (85,882) (162,272) 194,026 269 1 - (3,710)
Ending balance W 174,005 90,412 189,806 530,300 742,252 520,326 204,711 401,077 289,232 10,195 9,258 5,494 3,167,068
150
(c) Changes in allowance for credit loss of loans at amortized cost and other financial assets as of December 31, 2022
December 31, 2021

12 months Life time
Transfer (from) to 12 months expected credit
losses 241 (230) (11) -
losses (284) 288 (4) -
assets (290) (2,012) 2,302 -
Provision 8,555 1,426 42,181 52,162
Charge off - - (27,929) (27,929)
Disposal - - (40) (40)
Collection - - 2,357 2,357
Others (*) 139,995 255 2,257 142,507
Ending balance W 183,908 8,008 70,043 261,959
(d) Changes in deferred loan origination costs for the years ended December 31, 2022 and 2021 are as follows:

Beginning balance W 543,361 516,815
Loan origination 209,347 255,482
Amortization, etc. (225,802) (228,936)
Ending balance W 526,906 543,361
151
13. Property and equipment
(a) Details of property and equipment as of December 31, 2022 and 2021 are as follows:
December 31, 2022

Accumulated Accumulated
Acquisition cost depreciation Impairment Carrying value
Land W 2,101,176 - - 2,101,176
Buildings 1,165,468 (455,617) (7,594) 702,257
Other assets 2,424,987 (1,836,533) - 588,454
Right-of-use assets 1,208,728 (589,518) - 619,210
W 6,900,359 (2,881,668) (7,594) 4,011,097
December 31, 2021

Accumulated Accumulated
Acquisition cost depreciation Impairment Carrying value
Land W 2,173,134 - - 2,173,134
Buildings 1,210,401 (446,321) (7,594) 756,486
Other assets 2,294,740 (1,786,323) - 508,417
Right-of-use assets 1,229,169 (621,042) - 608,127
W 6,907,444 (2,853,686) (7,594) 4,046,164
(b) Changes in property and equipment for the years ended December 31, 2022 and 2021 are as follows:
December 31, 2022

Right-of-use
Land Buildings Others assets Total
Beginning balance W 2,173,134 756,486 508,417 608,127 4,046,164
Acquisition(*1) 631 49,220 257,662 369,153 676,666
Disposal (13,173) (1,124) (4,212) (75,563) (94,072)
Depreciation(*2) - (49,935) (186,307) (287,886) (524,128)
Amounts transferred from(to)
investment property 2,892 (12,446) - - (9,554)
intangible assets - - 6,916 - 6,916
Amounts transferred from(to) non-
current assets held for sale(*3) (62,288) (39,469) - - (101,757)
operating lease assets - - 214 - 214
Effects of foreign currency
adjustments (20) (475) 4,877 4,328 8,710
Business combination (Note 47) - - 887 1,051 1,938
Ending balance W 2,101,176 702,257 588,454 619,210 4,011,097
(*1) W 33,983 million transferred from assets-under-construction is included.
(*2) Included in general administrative expense and other operating income(loss) of the consolidated statements of
(*3) Includes buildings, land, etc.
152
13. Property and equipment (continued)
(b) Changes in property and equipment for the years ended December 31, 2022 and 2021 are as follows (continued):
December 31, 2021

Right-of-use
Land Buildings Others assets Total
Acquisition(*1) 513 32,777 289,614 316,925 639,829
Disposal (709) (1,378) (5,086) (26,930) (34,103)
Depreciation(*2) - (49,646) (154,104) (289,585) (493,335)
Impairment - (7,594) - - (7,594)
investment property (46,046) (27,727) - - (73,773)
intangible assets - - 3,676 - 3,676
Amounts transferred from(to) non-
current assets held for sale(*3) (169) (853) - - (1,022)
Effects of foreign currency adjustments 318 146 5,025 17,300 22,789
Ending balance W 2,173,134 756,486 508,417 608,127 4,046,164
(*1) W 18,748 million transferred from assets-under-construction is included.
(*2) Included in general administrative expense and other operating income(loss) of the consolidated statements of
(*3) Includes buildings, land, etc.
(c) Insured assets and liability insurance as of December 31, 2022 are as follows:
December 31, 2022

Amount
Type of insurance Insured assets and objects covered Insurance company
Comprehensive insurance for Samsung Fire & Marine
Cash(including ATM) 25,500
financial institutions Insurance Co., Ltd., etc.
Comprehensive Property Property Total Risk, Machine Risk, Samsung Fire & Marine
1,667,825
insurance General Liability Collateral Insurance Co., Ltd., etc.
Meritz Fire & Marine
Fire insurance Business property and real estate 35,062
Insurance Co., Ltd., etc.
Compensation liability insurance Meritz Fire & Marine
Officer liability of executives 50,000
for officers Insurance Co., Ltd., etc.
Compensation liability insurance Meritz Fire & Marine
Employee 82,029
for employee accident Insurance Co., Ltd., etc.
Burglary insurance Samsung Fire & Marine
Cash and securities 60,480
Insurance Co., Ltd., etc.
Others Personal information liability insurance, Samsung Fire & Marine
56,862
etc. Insurance Co., Ltd., etc.
(*) Aside from the insurance mentioned above, the Group has entered into car insurance, medical insurance,
property insurance, and employee accident insurance.
153
14. Intangible assets
(a) Details of intangible assets as of December 31, 2022 and 2021 are as follows:

Goodwill W 4,683,902 4,670,134
Software 263,341 192,582
Development cost 454,284 229,148
Others 406,309 552,918
W 5,807,836 5,644,782
(b) Changes in intangible assets for the years ended December 31, 2022 and 2021 are as follows:
December 31, 2022

Development
Goodwill Software cost Others Total
Acquisition - 143,766 332,826 211,511 688,103
(Note 47) - 1,472 2,638 315 4,425
Disposal and write-off - (253) (434) (236,881) (237,568)
Amounts transferred
from(to) property and
equipment - - (6,337) (579) (6,916)
Impairment(*1) (2,258) - (702) 198 (2,762)
Amortization(*2) - (74,916) (102,849) (120,844) (298,609)
Effects of changes in
foreign exchange rate 16,026 690 (6) (329) 16,381
Ending balance W 4,683,902 263,341 454,284 406,309 5,807,836
(*1) Goodwill impairment incurred from the cash-generating unit of security sector at PT Shinhan Sekuritas Indonesia.
As a result of the impairment test for goodwill of PT Shinhan Sekuritas Indonesia’s cash-generating unit, the Group’s
interests of the carrying amount exceeding the recoverable amount of the cash-generating unit was recognized as an
impairment loss for W 2,258 million. This is attributable to the continued high prices caused by the prolonged crisis
in Ukraine in 2022, the local and global economic downturn, and the increase in the discount rate due to the global
high interest rate economic phenomenon, and recoverable amount decreased by W 1,569 million compared to the
previous year. The amount of impairment loss recognized is included in the non-operating expenses, the line item of
the consolidated statement of comprehensive income.
(*2) Included in general administrative expense and other operating income(expense) of the consolidated statements
of comprehensive income.
154
14. Intangible assets
(b) Changes in intangible assets for the years ended December 31, 2022 and 2021 are as follows (continued):
December 31, 2021

Development
Goodwill Software cost Others Total
Acquisition - 103,929 127,993 225,228 457,150
Business combination 13,851 - - - 13,851
Disposal and write-off - (2,341) (719) (5,349) (8,409)
Amounts transferred
from(to) property and
equipment - - (3,676) - (3,676)
Impairment(*1) (33,509) - (270) (765) (34,544)
Amortization(*2) - (55,531) (77,734) (129,615) (262,880)
Effects of changes in
foreign exchange rate - 1,990 (38) 719 2,671
Ending balance W 4,670,134 192,582 229,148 552,918 5,644,782
(*1) Goodwill impairment has occurred at Shinhan Bank Indonesia within the banking sector and PT Shinhan
Sekuritas Indonesia within the securities sector among the cash-generating units. After the impairment test for
goodwill of Shinhan Bank Indonesia, among the carrying value exceeding recoverable amount of cash-generating unit,
which is W 32,396 million, the Group has recognized W 32,072 million as an impairment of goodwill which is 99%
of the Group’s total stake. After the impairment test for goodwill of PT Shinhan Sekuritas Indonesia, among the
carrying value exceeding recoverable amount of cash-generating unit, which is W 2,595 million, the Group has
recognized W 2,569 million as an impairment of goodwill which is 99% of the Group’s total stake. This has occurred
as a result of the persistent low-interest rate in Indonesia, the impact of COVID-19, and the decrease in the recoverable
amount due to increased provisions of corporate borrowers. For the year ended December 31, 2021, the decrease in
the asset’s recoverable amount in comparison to the previous year is W 56,587 million and W 8,715 million,
respectively. The amount of goodwill impairment recognized is included in the non-operating expenses of the
consolidated statement of comprehensive income.
(*2) Included in general administrative expense and other operating income(expense) of the consolidated statements
155
14. Intangible asset (continued)
(c) Goodwill
i) Goodwill allocated in the Group’s CGUs as of December 31, 2022 and 2021 is as follows:

Banking W 768,766 764,883
Credit card 2,892,610 2,880,383
Securities 2,993 5,335
Life insurance 853,798 853,798
Others 165,735 165,735
W 4,683,902 4,670,134
ii) Changes in goodwill for the years ended December 31, 2022 and 2021 are as follows:

Beginning balance W 4,670,134 4,689,792
Additional recognition(*1) - 13,851
Impairment losses (2,258) (33,509)
Others (*2) 16,026 -
Ending balance W 4,683,902 4,670,134
(*1) It is the goodwill recognized by Shinhan Financial Plus, a subsidiary acquired in the previous year, from a
business transfer for the GF division and IMGA division of Leaders Financial Marketing.
(*2) Other changes are due to effects of changes in foreign exchange rate.
iii) Goodwill impairment test
The recoverable amounts of each CGU are evaluated based on their respective value in use.
- Explanation on evaluation method
The discounted cash flow method (DCF) is applied when evaluating the recoverable amounts based on value in use,
considering the characteristics of each unit or group of CGU. However, the CGU of life insurance applied an actuarial
enterprise valuation methodology based on probabilistically expected cash flows in consideration of the
characteristics of the insurance business.
- Projection period
When evaluating the value in use, 5.5 years of cash flow estimates are used in projection and the value thereafter is
reflected as terminal value. However, 99 years of cash flow estimates for Shinhan Life Insurance Co., Ltd. is applied
and the present value of the future cash flows thereafter is not applied as it is not significant.
156
14. Intangible assets, net (continued)
- Discount rates and terminal growth rates
The required rates of return expected by shareholders are applied to the discount rates. It is calculated in consideration
of which comprises a risk-free interest rate, a market risk premium and systemic risk (beta factor). In addition, terminal
growth rate is estimated based on inflation rate. However, since the life insurance cash-generating unit reflects the
cost of risk in future cash flows, the discount rate based on the risk-free government bond interest rate term structure
reflecting only the time value of money was applied.
Discount rates and terminal growth rates applied to each CGU are as follows:
Discount rate(%) Terminal growth rate(%)

Banking 7.1 ~ 14.2 0.0 ~ 2.0
Credit card 8.7 ~ 13.9 1.0 ~ 2.0
Securities 13.6 ~ 13.9 2.0
Others 8.9 ~ 10.9 1.0
In case of the life insurance CGU, a term structure discount rate of 2.37% to 4.95% was applied for each future
period corresponding to future cash flows for 99 years.
iv) Key assumptions
Key assumptions used in the discounted cash flow calculations of CGUs (other than life insurance components) are
as follows:
2022 2023 2024 2025 2026 2027

CPI growth(%) 5.50 2.80 0.80 1.00 1.20 1.20
Private consumption growth(%) 3.40 2.20 2.30 2.60 2.80 2.80
Real GDP growth(%) 2.70 2.30 2.60 2.80 2.70 2.70
Key assumptions used in the discounted cash flow calculations of life insurance (Shinhan life insurance) components
are as follows:
Key assumptions
Consumer price index growth rate(Bank of Korea)(%) 2.00
Risk-based confidence level(%) 99.50
v) Total recoverable amount and total carrying value of CGUs to which goodwill has been allocated, are as follows:
Amount
Total recoverable amount W 55,081,110
Total carrying value(*) 46,383,778
W 8,697,332
(*) It is the carrying value after reflecting the impairment loss in the securities sector.
157
15. Investments in associates
(a) Investments in associates as of December 31, 2022 and 2021 are as follows:
Ownership (%)
Reporting December December
Investees Country date 31, 2022 31, 2021
BNP Paribas Cardif Life Insurance (*1),(*2) Korea September 30 14.99 14.99
Songrim Partners (*7) Korea - - 35.34
Partners 4th Growth Investment Fund (*4) Korea November 30 25.00 25.00
KTB Newlake Global Healthcare PEF Korea December 31 20.57 30.00
Shinhan-Neoplux Energy Newbiz Fund (*1),(*5) Korea December 31 31.66 31.66
Shinhan-Albatross tech investment Fund (*4),(*5) Korea November 30 50.00 50.00
Meritz AI-SingA330-A Investment Type Private Placement Special
Korea December 31 23.89 23.89
Asset Fund
Meritz AI-SingA330-B Investment Type Private Placement Special
Asset Fund
VOGO Debt Strategy Qualified IV Private Korea December 31 20.00 20.00
Shinhan-Midas Donga Secondary Fund (*6) Korea December 31 50.00 50.00
ShinHan – Soo Young Entrepreneur Investment Fund No.1 Korea December 31 24.00 24.00
Shinhan Praxis K-Growth Global Private Equity Fund (*9) Korea December 31 14.15 18.87
Kiwoom Milestone Professional Private Real Estate Trust 19 Korea December 31 50.00 50.00
AIP EURO Green Private Real Estate Trust No.3 (*7) Korea - - 21.28
Shinhan Global Healthcare Fund 1 (*9) Korea December 31 4.41 4.41
KB NA Hickory Private Special Asset Fund Korea December 31 37.50 37.50
Koramco Europe Core Private Placement Real Estate Fund No.2-2 Korea December 31 44.02 44.02
Shinhan EZ General Insurance, Ltd. (*12) Korea - 85.10 5.46
Hermes Private Investment Equity Fund Korea December 31 29.17 29.17
KDBC-Midas Dong-A Global contents Fund Korea December 31 23.26 23.26
Shinhan-Nvestor Liquidity Solution Fund Korea December 31 24.92 24.92
Shinhan AIM FoF Fund 1-A Korea December 31 25.00 25.00
IGIS Global Credit Fund 150-1 Korea December 31 25.00 25.00
Partner One Value up I Private Equity Fund Korea December 31 27.91 27.91
Genesis No.1 Private Equity Fund Korea December 31 22.80 22.80
Korea Omega Project Fund III Korea December 31 23.53 23.53
Soo Delivery Platform Growth Fund (*7) Korea - - 30.00
Genesis North America Power Company No.1 PEF Korea December 31 39.11 40.03
SH MAIN Professional Investment Type Private Mixed Asset
Investment Trust No.3
MIEL CO.,LTD.(*3),(*4) Korea December 31 28.77 28.77
AIP Transportation Specialized Privately Placed Fund Trust #1 Korea December 31 35.73 35.73
E&Healthcare Investment Fund No.6 Korea December 31 21.05 21.05
One Shinhan Global Fund 1 (*5) Korea December 31 20.52 20.56
Kiwoom-Shinhan Innovation Fund I (*6) Korea December 31 50.00 50.00
158
15. Investments in associates (continued)
(a) Investments in associates as of December 31, 2022 and 2021 are as follows (continued):
Ownership (%)
Daishin-K&T New Technology Investment Fund (*7) Korea - - 31.25
Midas Asset Global CRE Debt Private Fund No.6 Korea December 31 41.16 41.16
Samchully Midstream Private Placement Special Asset Fund 5-4 Korea December 31 42.92 42.92
SH Senior Loan Professional Investment Type Private Mixed Asset
Korea September 30 20.00 20.00
Investment Trust No.3 (*1)
NH-Amundi Global Infrastructure Trust 14 Korea December 31 30.00 30.00
Jarvis Memorial Private Investment Trust 1 (*6) Korea December 31 99.01 99.01
Vestas Qualified Investors Private Real Estate Fund Investment
Trust No.37 (*8)
Milestone Private Real Estate Fund 3 Korea December 31 32.06 32.06
Nomura-Rifa Private Real Estate Investment Trust 31 Korea December 31 31.31 31.31
SH Senior Loan Professional Investment Type Private Mixed Asset
T&F 2019 bearing Private Equity Fund Specializing in Start-up and
Venture Business
Cape IT Fund No.3 (*7) Korea - - 32.89
FuturePlay-Shinhan TechInnovation Fund 1 (*6) Korea December 31 50.00 50.00
Stonebridge Corporate 1st Fund Korea December 31 44.12 44.12
Vogo Realty Partners Private Real Estate Fund V Korea December 31 21.64 21.64
Korea Credit Bureau (*1),(*9) Korea September 30 9.00 9.00
Goduck Gangil1 PFV Co., Ltd. (*1),(*9) Korea September 30 1.04 1.04
SBC PFV Co., Ltd. (*1),(*10) Korea September 30 25.00 25.00
NH-amundi global infra private fund 16 Korea December 31 50.00 50.00
IMM Global Private Equity Fund Korea December 31 33.00 33.00
HANA Alternative Estate Professional Private122 (*7) Korea - - 74.02
SH Corporate Professional Investment Type Private Security
Korea - - 45.96
SH BNCT Professional Investment Type Private Special Asset
Investment Trust (*11)
Deutsche Global Professional Investment Type Private Real Estate
Investment Trust No. 24 (*8)
Sparklabs-Shinhan Opportunity Fund 1 Korea December 31 49.50 49.50
BNW Tech-Innovation Private Equity Fund Korea December 31 29.85 29.85
IGIS Real-estate Private Investment Trust No.33 Korea December 31 40.86 40.86
WWG Global Real Estate Investment Trust no.4 Korea December 31 29.55 29.55
Goduck Gangil10 PFV Co., Ltd. (*1),(*9) Korea September 30 19.90 19.90
Fidelis Global Private Real Estate Trust No.2 (*8) Korea December 31 79.70 78.26
159
Ownership (%)
AIP EURO PRIVATE REAL ESTATE TRUST No. 12 Korea December 31 28.70 28.70
Shinhan Healthcare Fund 2(*9) Korea December 31 13.68 13.68
Pebblestone CGV Private Real Estate Trust No.1 (*7) Korea - - 48.53
SH Corporate Professional Investment Type Private Security Investment Trust
Korea - - 43.65
No.45 (*7)
Shinhan AIM Real Estate Fund No.2 (*1) Korea September 30 30.00 30.00
Shinhan AIM Real Estate Fund No.1 (*1) Korea September 30 21.01 21.01
SH Daegu Green Power Cogeneration System Professional Investment Type
Private Special Asset Investment Trust
SH Sangju YC Expressway Professional Investment Type Private Special
Asset Investment Trust (*1)
SH Global Infrastructure Professional Investment Type Private Special Asset
Investment Trust No.7-2 (*1),(*8)
Korea Omega-Shinhan Project Fund I (*6) Korea December 31 50.00 50.00
ST-Bonanja Food tech Korea December 31 38.83 38.83
Samsung SRA Real Estate Professional Private 45 Korea December 31 25.00 25.00
IBK Global New Renewable Energy Special Asset Professional Private2 Korea December 31 28.98 28.98
VS Cornerstone Fund Korea December 31 41.18 41.18
Aone Mezzanine Opportunity Professional Private (*8) Korea December 31 64.41 66.09
NH-Amundi US Infrastructure Private Fund2 Korea December 31 25.91 25.91
KB Distribution Private Real Estate1 (*7) Korea - - 62.00
SH Japan Photovoltaic Private Special Asset Investment Trust No.2 (*1) Korea September 30 30.00 30.00
Kakao-Shinhan 1st TNYT Fund Korea December 31 48.62 48.62
IMM Special Situation 1-2 PRIVATE EQUITY FUND Korea December 31 20.00 20.00
Pacific Private Placement Real Estate Fund No.40 Korea December 31 24.73 24.73
Mastern Private Real Estate Loan Fund No.2 Korea December 31 33.57 33.57
LB Scotland Amazon Fulfillment Center Fund 29(*8) Korea December 31 70.14 70.14
JR AMC Hungary Budapest Office Fund 16 Korea December 31 32.57 32.57
EDNCENTRAL Co.,Ltd.(*9) Korea December 31 13.47 19.87
Future-Creation Neoplux Venture Capital Fund (*1),(*5) Korea September 30 16.25 16.25
Gyeonggi-Neoplux Superman Fund (*1),(*5) Korea September 30 21.76 21.76
NewWave 6th Fund (*5) Korea December 31 30.00 30.00
KTC-NP Growth Champ 2011-2 Private Equity Fund (*1),(*5) Korea September 30 5.56 5.56
160
Ownership (%)
Neoplux No.3 Private Equity Fund (*1),(*5) Korea September 30 10.00 10.00
PCC Amberstone Private Equity Fund I Korea December 31 21.67 21.67
KIAMCO POWERLOAN TRUST 4TH Korea December 31 47.37 47.37
Mastern Opportunity Seeking Real Estate Fund II Korea December 31 20.00 20.00
AION ELFIS PROFESSIONAL PRIVATE 1 Korea December 31 20.00 20.00
T&F 2020 SS Private Equity Fund Specializing in Start-up and Venture
Business
Neoplux Market-Frontier Secondary Fund (*5) Korea December 31 19.74 19.74
Harvest Private Equity Fund II Korea December 31 22.06 22.06
Synergy Green New Deal 1st New Technology Business Investment Fund Korea December 31 28.17 28.17
KAIM Real-estate Private Investment Trust 20 Korea December 31 38.46 38.46
KIAMCO Vietnam Solar Special Asset Private Investment Trust (*6) Korea December 31 50.00 50.00
Daishin New Technology Investment Fund 5th Korea December 31 23.44 23.44
CSQUARE SNIPER PROFESSIONAL PRIVATE 10 (*7) Korea - - 62.50
Acurus Hyundai Investment Partners New Technology (*7) Korea - - 26.79
IGIS GLIP Professional Investment Private Real Estate Investment Trust No.
Korea - - 97.10
1-1 (*7)
IGIS GLIP Professional Investment Private Real Estate Investment Trust No.
Korea - - 97.10
1-2 (*7)
Pacific Sunny Professional Investors Private Placement Real Estate
Korea - - 25.00
Investment Company No.45 (*7)
SHINHAN-NEO Core Industrial Technology Fund (*5) Korea December 31 49.75 49.75
SHBNPP Green New Deal Energy Professional Investment Type Private
Special Asset Investment Trust No.2 (*1)
SIMONE Mezzanine Fund No.3 Korea December 31 28.97 29.38
Eum Private Equity Fund No.7 Korea December 31 21.00 21.00
Kiwoom Private Equity Ant-Man Startup Venture Specialized Private Equity
Korea - - 25.00
Fund (*7)
Kiwoom Hero No.4 Private Equity Fund Korea December 31 21.05 21.05
Vogo Canister Professional Trust Private Fund I Korea December 31 36.27 36.53
SW-S Fund Korea December 31 30.30 30.30
CL Buyout 1st PEF Korea December 31 21.43 21.43
Timefolio The Venture-V second Korea December 31 20.73 20.73
Newlake Growth Capital Partners2 PEF (*4) Korea November 30 29.91 29.91
Shinhan Smilegate Global PEF I (*9) Korea December 31 14.21 14.21
Fount Professional Investors Private Investment Trust No.3 (*7) Korea - - 49.98
Genesis Eco No.1 PEF Korea December 31 29.00 29.01
SHINHAN-NEO Market-Frontier 2nd Fund (*5) Korea December 31 42.70 42.70
NH-Synergy Core Industrial New Technology Fund Korea December 31 36.93 36.93
J& Moorim Jade Investment Fund Korea December 31 24.89 24.89
Helios-KDBC Digital Contents 1st Korea December 31 23.26 23.26
Ulmus SHC innovation investment fund Korea December 31 24.04 24.04
Mirae Asset Partners X Private Equity Fund Korea December 31 35.71 35.71
T Core Industrial Technology 1st Venture PEF Korea December 31 31.47 31.47
Curious Finale Corporate Recovery Private Equity Fund Korea December 31 27.78 27.78
TI First Property Private Investment Trust 1 Korea December 31 40.00 40.00
MPLUS Professional Private Real Estate Fund 25 Korea December 31 41.67 41.67
IBKC Global Contents Investment Fund Korea December 31 24.39 24.39
161
Ownership (%)
Nautic Smart No.6 Private Equity Fund Korea December 31 37.74 37.74
Premier Luminous Private Equity Fund Korea December 31 25.12 27.78
Hanyang-Meritz 1 Fund Korea December 31 22.58 22.58
KNT 2ND PRIVATE EQUITY FUND Korea December 31 21.74 21.74
Kiwoom-Shinhan Innovation Fund 2 Korea December 31 42.86 42.86
Maple Mobility Fund Korea December 31 20.18 20.18
SJ ESG Innovative Growth Fund Korea December 31 28.57 28.57
AVES 1st Corporate Recovery Private Equity Fund (*6) Korea December 31 76.19 76.19
JS Shinhan Private Equity Fund (*5) Korea December 31 3.85 3.85
NH Kyobo AI Solution Investment Fund Korea December 31 26.09 26.09
Daishin Newgen New Technology Investment Fund 1st (*8) Korea December 31 50.60 50.60
META ESG Private Equity Fund I Korea December 31 27.40 27.40
SWFV FUND-1 Korea December 31 40.25 40.25
PHAROS DK FUND Korea December 31 24.14 24.24
Shinhan VC tomorrow venture fund 1 (*5) Korea December 31 39.62 39.62
Highland 2021-8 Fund Korea December 31 32.67 32.67
H-IOTA Fund Korea December 31 24.81 24.81
Stonebridge-Shinhan Unicorn Secondary Fund (*5) Korea December 31 17.57 19.92
Tres-Yujin Trust (*6) Korea December 31 50.00 50.00
Shinhan-Time mezzanine blind Fund (*6) Korea December 31 50.00 50.00
Capstone REITs No.26 (*6) Korea December 31 50.00 50.00
JB Incheon-Bucheon REITS No.54 Korea December 31 39.31 39.31
Hankook Smart Real Asset Investment Trust No.3 Korea December 31 33.33 33.33
JB Hwaseong-Hadong REITs No.53 Korea December 31 31.03 31.03
KB Oaktree Trust No.3 Korea December 31 33.33 33.33
Daehan No.36 Office Asset Management Company Korea December 31 48.05 48.05
Rhinos Premier Mezzanine Private Investment Fund No.1 Korea December 31 27.93 27.93
SH Real Estate Loan Investment Type Private Real Estate Investment Trust
No.2
Shinhan JigaeNamsan Road Private Special Asset Investment Trust (*1) Korea September 30 24.85 24.85
SKS-Yozma Fund No.1 Korea December 31 29.85 29.85
IBKC-METIS Global Contents Investment Fund Korea December 31 36.36 36.36
Keistone Unicorn Private Equity Fund Korea December 31 28.00 28.00
KB Distribution Private Real Estate 3-1 Korea December 31 37.50 -
Pacific Private Investment Trust No.49-1 (*8) Korea December 31 79.28 -
KIWOOM Real estate private placement fund for normal investors No. 31 Korea -
December 31 60.00
(*8)
RIFA Real estate private placement fund for normal investoes No. 51 Korea December 31 40.00 -
Fivetree general private equity fund No.15 Korea December 31 49.98 -
Shinhan-Kunicorn first Fund Korea December 31 38.31 -
Harvest Fund No.3 Korea December 31 44.67 -
Shinhan Simone Fund Ⅰ Korea December 31 38.46 -
Korea Investment develop seed Trust No.1 Korea December 31 40.00 -
Tiger Green alpah Trust No.29 (*6) Korea December 31 95.24 -
STIC ALT Global II Private Equity Fund Korea December 31 21.74 -
NH-Brain EV Fund Korea December 31 25.00 -
DDI LVC Master Real Estate Investment Trust Co., Ltd. (*1),(*9) Korea September 30 15.00 -
Find-Green New Deal 2nd Equity Fund Korea December 31 22.57 -
ShinhanFitrin 1st Technology Business Investment Association (*5) Korea December 31 16.17 -
PARATUS No.3 Private Equity Fund Korea December 31 25.64 -
Golden Route 2nd Startup Venture Specialized Private Equity Fund Korea December 31 22.73 -
Koramco Private Real Estate Fund 143 Korea December 31 30.30 -
Korea Investment Top Mezzanine Private Real Esate Trust No.1 Korea December 31 22.22 -
LB YoungNam Logistics Private Trust No.40 Korea December 31 25.00 -
Shinhan-Cognitive Start-up Fund L.P. Korea December 31 32.74 -
IGEN2022 No.1 private Equity Fund Korea December 31 27.95 -
Cornerstone J&M Fund I Korea December 31 26.67 -
162
Ownership (%)
Logisvalley Shinhan REIT Co.,Ltd. (*1) Korea September 30 20.27 -
KDB Investment Global Healthcare Private Equity Fund I Korea December 31 24.14 -
Korea Investment Green Newdeal Infra Trust No.1 Korea December 31 27.97 -
BTS 2nd Private Equity Fund (*1) Korea September 30 26.00 -
Shinhan Global Active REIT Co.Ltd Korea December 31 20.37 -
NH-J&-IBKC Label Technology Fund Korea December 31 27.81 -
IMM Global Venture Opportunity, LP Korea December 31 35.50 -
Capstone Develop Frontier Trust Korea December 31 21.43 -
Nextrade Co., Ltd. (*9) Korea December 31 8.00 -
SH Sustainable Management ESG Short term Bond Security Feeder Korea -
December 31 26.90
SH 1.5years Maturity Investment Type Security Investment Trust No.2 Korea December 31 29.00 -
Eventus-IBKC LIB Fund Korea December 31 21.88 -
NH-Daishin-Kyobo healthcare 1 Fund Korea December 31 25.00 -
IBKC-Behigh Fund 1st Korea December 31 29.73 -
Nautic Green Innovation ESG Co-investment No.1 Private Equity Fund Korea December 31 24.10 -
ON No.1 Private Equity Fund Korea December 31 28.57 -
Digital New Deal Kappa Private Equity Fund Korea December 31 30.12 -
(*1) The financial statements of September 30, 2022 are used for the equity method since the financial statements as
of December 31, 2022 are not available. Significant trades and events occurred within the period are properly reflected.
(*2) The Group applies the equity method accounting as the Group has a significant influence on the investees through
important business transactions.
(*3) In the course of the rehabilitation process, the shares were acquired through investment conversion. Although
voting rights cannot be exercised during the rehabilitation process, normal voting rights are exercised because the
rehabilitation process was completed before December 31, 2022. Also, it has been reclassified into the investments in
associates.
(*4) The latest financial statements are used for the equity method since the financial statements as of December 31,
2022 are not available. Significant trades and events occurred within the period are properly reflected.
(*5) As a managing partner, the Group has a significant influence over the investees.
(*6) As a limited partner, the Group does not have an ability to participate in policy-making processes to obtain
economic benefit from the investees that would allow the Group to control the entity.
(*7) Excluded from the investments in associates due to full or partial disposal of shares, or loss of significant influence.
(*8) Although the ownership percentages are more than 50%, the Group applies the equity method accounting as the
Group does not have an ability to participate in the financial and operating policy-making process.
(*9) Although the ownership percentages are less than 20%, the Group applies the equity method accounting since it
participates in policy-making processes and therefore can exercise significant influence on investees.
(*10) The rate of Group’s voting rights is 4.65%.
(*11) Although the Group has a significant influence with ownership percentage more than 50%, the contribution was
classified as investments in associates as the Group is not exposed to variable returns due to the payment guarantee
for the entire investment amount.
(*12) For the year ended December 31, 2022, it is incorporated into the consolidation target as the Group held control
due to increased equity ratio and BNP Paribas Cardif General Insurance, Ltd. has changed its name to Shinhan EZ
General Insurance, Ltd.
163
(b) Changes in investments in associates for the years ended December 31, 2022 and 2021 are as follows:
December 31, 2022

Equity Change in
Investment method other
Beginning and income comprehensive Impairment Ending
Investees balance dividend (loss) income loss balance
BNP Paribas Cardif Life Insurance W 44,022 - (1,774) (12,079) - 30,169
Songrim Partners - - - - - -
Partners 4th Growth Investment Fund 13,033 (1,714) 6,917 (4,694) - 13,542
KTB Newlake Global Healthcare PEF 9,412 (5,832) 729 - - 4,309
Shinhan-Neoplux Energy Newbiz Fund 16,032 (391) 5,196 - - 20,837
Shinhan-Albatross tech investment Fund 10,389 (1,800) 3,792 (128) - 12,253
Meritz AI-SingA330-A Investment Type
- 676 34 - 3,522 4,232
Private Placement Special Asset Fund
Meritz AI-SingA330-B Investment Type
- 1,471 - - 255 1,726
VOGO Debt Strategy Qualified IV
7,179 (1,433) 339 - - 6,085
Private
Shinhan -Midas Dong-A Secondary
3,951 (1,025) 1,505 - - 4,431
Fund
ShinHan – Soo Young Entrepreneur
4,226 - 188 - - 4,414
Investment Fund No.1
Shinhan Praxis K-Growth Global Private
7,761 (8,512) 4,442 - - 3,691
Equity Fund
Kiwoom Milestone Professional Private
5,253 - (150) - (1,142) 3,961
Real Estate Trust 19
AIP EURO Green Private Real Estate
29,703 (29,008) (695) - - -
Trust No.3
Shinhan Global Healthcare Fund 1 (*1) - - - - - -
KB NA Hickory Private Special Asset
34,376 (1,545) 1,508 - - 34,339
Fund
Koramco Europe Core Private
19,492 (464) 208 - - 19,236
Placement Real Estate Fund No.2-2
Shinhan EZ General Insurance, Ltd. (*2) 3,354 (3,181) (182) 9 - -
Hermes Private Investment Equity Fund 9,782 - (4,220) - - 5,562
KDBC-Midas Dong-A Global contents
2,955 - 1,322 - - 4,277
Fund
Shinhan-Nvestor Liquidity Solution
5,338 700 400 - - 6,438
Fund
Shinhan AIM FoF Fund 1-A 9,156 51 903 - - 10,110
IGIS Global Credit Fund 150-1 5,402 (1,267) 557 - - 4,692
Partner One Value up I Private Equity
7,891 - (2,747) - - 5,144
Fund
Genesis No.1 Private Equity Fund 55,533 408 3,983 - - 59,924
Korea Omega Project Fund III 4,290 - (616) - - 3,674
Soo Delivery Platform Growth Fund 5,873 (6,093) 220 - - -
Genesis North America Power Company
13,736 (12,629) 7,011 - - 8,118
No.1 PEF
SHBNPP MAIN Professional
Investment Type Private Mixed Asset 41,549 12,056 (10,361) - - 43,244
MIEL CO.,LTD. (*1) - - - - - -
AIP Transportation Specialized Privately
34,688 5,527 4,606 - - 44,821
Placed Fund Trust #1
E&Healthcare Investment Fund No.6 6,866 (3,190) (3,079) - - 597
One Shinhan Global Fund 1 3,773 - (1,183) - (642) 1,948
164
(b) Changes in investments in associates for the years ended December 31, 2022 and 2021 are as follows
(continued):
December 31, 2022

Equity Change in
Kiwoom-Shinhan Innovation Fund I W 11,731 (1,500) (790) - - 9,441
Daishin-K&T New Technology
7,991 (7,430) (561) - - -
Investment Fund
Midas Asset Global CRE Debt Private
48,305 5,873 2,851 - - 57,029
Fund No.6
Samchully Midstream Private Placement
27,471 5,033 (1,880) - - 30,624
Special Asset Fund 5-4
SHBNPP Senior Loan Professional
Investment Type Private Mixed Asset 25,204 (912) 200 - - 24,492
NH-Amundi Global Infrastructure Trust
18,301 1,714 960 - - 20,975
14
Jarvis Memorial Private Investment
10,109 (700) 377 - - 9,786
Trust 1
Vestas Qualified Investors Private Real
33,153 (22) 226 - - 33,357
Estate Fund Investment Trust No.37
Milestone Private Real Estate Fund 3
18,544 (201) 728 - - 19,071
(Derivative Type)
RIFA Real estate private placement fund
7,902 (607) 69 - - 7,364
for normal investors No. 31
Investment Type Private Mixed Asset 10,236 (5,292) (1,975) - - 2,969
T&F 2019 bearing Private Equity Fund
Specializing in Start-up and Venture 2,864 - 367 - - 3,231
Business
Cape IT Fund No.3 10,065 (10,580) 515 - - -
FuturePlay-Shinhan TechInnovation
7,149 - (233) - - 6,916
Fund 1
Stonebridge Corporate 1st Fund 2,964 - 658 - - 3,622
Vogo Realty Partners Private Real Estate
10,766 (638) 787 - - 10,915
Fund V
Korea Credit Bureau 7,695 - (2,656) - - 5,039
Goduck Gangil1 PFV Co., Ltd. - - 60 - - 60
SBC PFV Co., Ltd. 29,586 - (1,118) - - 28,468
NH-amundi global infra private fund 16 52,008 (15,362) 19,565 - - 56,211
IMM Global Private Equity Fund 118,615 19,045 9,724 - - 147,384
HANA Alternative Eastate Professional
29,489 (28,570) (918) - - 1
Private122
SHBNPP Corporate Professional
Investment Type Private Security 49,899 (50,540) 641 - - -
SHBNPP BNCT Professional
Investment Type Private Special Asset 282,199 (24,838) 5,691 - - 263,052
Investment Trust
Deutsche Global Professional
Investment Type Private Real Estate 28,312 (6,937) 1,308 - - 22,683
Investment Trust No. 24
Sparklabs-Shinhan Opportunity Fund 1 4,640 (826) 817 - - 4,631
BNW Tech-Innovation Private Equity
5,881 - (48) - - 5,833
Fund
IGIS Real-estate Private Investment
13,884 (715) 1,383 - - 14,552
Trust No.33
WWG Global Real Estate Investment
10,644 (659) 346 - - 10,331
Trust no.4
Goduck Gangil10 PFV Co., Ltd. - - 3,236 - - 3,236
165
(continued):
December 31, 2022
Equity Change in
Fidelis Global Private Real Estate Trust
W 19,773 2,183 (11) - - 21,945
No.2
AIP EURO PRIVATE REAL ESTATE
49,217 (5,640) 4,850 - - 48,427
TRUST No. 12
Shinhan Global Healthcare Fund 2 (*1) - - - - - -
Pebblestone CGV Private Real Estate
13,710 (13,971) 261 - - -
Trust No.1
SH Corporate Professional Investment
Type Private Security Investment Trust 173,955 (173,955) - - - -
No.45
Shinhan AIM Real Estate Fund No.2 23,275 3,346 (1,378) - - 25,243
Shinhan AIM Real Estate Fund No.1 44,312 (2,176) 2,506 - - 44,642
SHBNPP Daegu Green Power
Cogeneration System Professional
32,948 (915) 594 - - 32,627
Investment Type Private Special Asset
Investment Trust
SHBNPP Sangju YC Expressway
Professional Investment Type Private 20,550 6 (1,260) - - 19,296
Special Asset Investment Trust
SHBNPP Global Infrastructure
Professional Investment Type Private 18,855 5,114 629 - - 24,598
Special Asset Investment Trust No.7-2
Korea Omega-Shinhan Project Fund I 7,244 2,000 778 - - 10,022
ST-Bonanja Food tech 3,359 (621) (107) - - 2,631
Samsung SRA Real Estate Professional
12,880 5,279 3,491 - - 21,650
Private 45[FoFs]
IBK Global New Renewable Energy
31,887 (2,516) 4,041 - - 33,412
Special Asset Professional Private2
VS Cornerstone Fund 3,410 - (75) - - 3,335
Aone Mezzanine Opportunity
9,540 (5,084) 553 - - 5,009
Professional Private
NH-Amundi US Infrastructure Private
27,024 2,446 2,471 - - 31,941
Fund2
KB Distribution Private Real Estate1 30,694 (30,694) - - - -
SHBNPP Japan Photovoltaic Private
13,016 (7,291) 607 - - 6,332
Special Asset Investment Trust No.2
Kakao-Shinhan 1st TNYT Fund 14,497 - 6,833 - - 21,330
IMM Special Situation 1-2 PRIVATE
11,593 (8,690) (300) - - 2,603
EQUITY FUND
Pacific Private Placement Real Estate
11,598 (748) 772 - - 11,622
Fund No.40
Mastern Private Real Estate Loan Fund
7,491 (1,359) 255 - - 6,387
No.2
LB Scotland Amazon Fulfillment Center
31,268 (2,189) 558 - - 29,637
Fund 29
JR AMC Hungary Budapest Office Fund
12,140 (821) 1,138 - - 12,457
16
EDNCENTRAL Co.,Ltd. (*1) - - - - - -
Future-Creation Neoplux Venture
3,017 - 1,234 - - 4,251
Capital Fund
Gyeonggi-Neoplux Superman Fund 7,878 (1,195) (1,216) - - 5,467
NewWave 6th Fund 14,455 - (915) - - 13,540
KTC-NP Growth Champ 2011-2 Private
3,990 (2,490) (293) - - 1,207
Equity Fund
166
(continued):
December 31, 2022

Equity Change in
Neoplux No.3 Private Equity Fund W 22,601 (2) (2,145) - - 20,454
PCC Amberstone Private Equity Fund I 22,790 (2,509) (1,496) - - 18,785
KIAMCO POWERLOAN TRUST 4TH 45,301 (2,305) 528 - - 43,524
Mastern Opportunity Seeking Real
21,317 (6,457) (150) - - 14,710
Estate Fund II
AION ELFIS PROFESSIONAL
4,422 232 (1,088) - - 3,566
PRIVATE 1
T&F 2020 SS Private Equity Fund
Specializing in Start-up and Venture 4,360 (1,732) 3,081 - - 5,709
Business
Neoplux Market-Frontier Secondary
11,313 (653) 3,300 - - 13,960
Fund
Harvest Private Equity Fund II 3,481 (159) (183) - - 3,139
Synergy Green New Deal 1st New
9,684 (146) 1,094 - - 10,632
Technology Business Investment Fund
KAIM Real-estate Private Investment
5,048 (4,176) 315 - - 1,187
Trust 20
KIAMCO Vietnam Solar Special Asset
7,527 (2,019) 1,219 - - 6,727
Private Investment Trust
Daishin New Technology Investment
4,439 (844) (1,165) - - 2,430
Fund 5th
CSQUARE SNIPER PROFESSIONAL
3,247 (3,806) 559 - - -
PRIVATE 10
Acurus Hyundai Investment Partners
4,714 (3,979) (735) - - -
New Technology
IGIS GLIP Professional Investment
Private Real Estate Investment Trust 63,944 (60,279) - (3,665) - -
No. 1-1
Private Real Estate Investment Trust 63,944 (60,279) - (3,665) - -
No. 1-2
Pacific Sunny Professional Investors
Private Placement Real Estate 14,778 (14,778) - - - -
Investment Company No.45
SHINHAN-NEO Core Industrial
5,691 3,960 (242) - - 9,409
Technology Fund
SHBNPP Green New Deal Energy
Professional Investment Type Private 27,243 (2,559) 340 - - 25,024
SIMONE Mezzanine Fund No.3 3,054 4 (41) - - 3,017
Eum Private Equity Fund No.7 7,873 (86) 1,383 - - 9,170
Kiwoom Private Equity Ant-Man
Startup Venture Specialized Private 7,594 (4,870) (2,724) - - -
Equity Fund
Kiwoom Hero No.4 Private Equity Fund 4,305 - (788) - - 3,517
Vogo Canister Professional Trust Private
41,072 2,103 3,154 - - 46,329
Fund I
SW-S Fund 6,724 - 524 - - 7,248
CL Buyout 1st PEF 13,791 273 (1,222) - - 12,842
Timefolio The Venture-V second 4,572 - (476) - - 4,096
167
(continued):
December 31, 2022

Equity Change in
Newlake Growth Capital Partners2 PEF W 12,921 (177) (248) - - 12,496
Shinhan Smilegate Global PEF I 3,336 (1,828) 2,263 - - 3,771
Fount Professional Investors Private
5,197 (5,197) - - - -
Genesis Eco No.1 PEF 11,130 195 93 - - 11,418
SHINHAN-NEO Market-Frontier 2nd
24,606 8,540 1,274 - - 34,420
Fund
NH-Synergy Core Industrial New
6,437 - (60) - - 6,377
Technology Fund
J& Moorim Jade Investment Fund 5,540 (385) 279 - - 5,434
Helios-KDBC Digital Contents 1st 1,695 1,720 (59) - - 3,356
Ulmus SHC innovation investment fund 5,192 - (306) - - 4,886
Mirae Asset Partners X Private Equity
7,858 - (66) - - 7,792
Fund
T Core Industrial Technology 1st
4,535 - (6) - - 4,529
Venture PEF
Curious Finale Corporate Recovery
3,690 (245) 146 - - 3,591
Private Equity Fund
TI First Property Private Investment
3,055 (101) 173 - - 3,127
Trust 1
MPLUS Professional Private Real Estate
3,290 655 286 - - 4,231
Fund 25
IBKC Global Contents Investment Fund 4,943 - (391) - - 4,552
Nautic Smart No.6 Private Equity Fund 3,974 (3,752) 956 - - 1,178
Premier Luminous Private Equity Fund 6,991 (2,314) 4,289 - - 8,966
Hanyang-Meritz 1 Fund 3,483 - (17) - - 3,466
KNT 2ND PRIVATE EQUITY FUND 4,157 (3,000) (207) - - 950
Kiwoom-Shinhan Innovation Fund 2 2,677 9,000 (406) - - 11,271
Maple Mobility Fund 8,683 91 8,085 - - 16,859
SJ ESG Innovative Growth Fund 2,998 - 1,199 - - 4,197
AVES 1st Corporate Recovery Private
4,736 - 321 - - 5,057
Equity Fund
JS Shinhan Private Equity Fund 5,037 - (84) - - 4,953
NH Kyobo AI Solution Investment Fund 2,973 - 315 - - 3,288
Daishin Newgen New Technology
12,169 (2,277) (4,188) - - 5,704
Investment Fund 1st
META ESG Private Equity Fund I 5,677 - 180 - - 5,857
SWFV FUND-1 9,646 - (518) - - 9,128
PHAROS DK FUND 3,949 - (114) - - 3,835
168
(continued):
December 31, 2022

Equity Change in
Shinhan VC tomorrow venture fund 1 W 9,042 18,226 (342) - - 26,926
Highland 2021-8 Fund 4,899 - (73) - - 4,826
H-IOTA Fund 9,728 (88) (17) - - 9,623
Stonebridge-Shinhan Unicorn Secondary
2,074 4,160 (152) - - 6,082
Fund
Tres-Yujin Trust 9,995 (546) 555 - - 10,004
Shinhan-Time mezzanine blind Fund 14,942 - (1,630) - - 13,312
Capstone REITs No.26 4,395 (300) (243) - - 3,852
JB Incheon-Bucheon REITS No.54 4,999 - (10) - - 4,989
Hankook Smart Real Asset Investment
4,342 2,195 456 - - 6,993
Trust No.3
JB Hwaseong-Hadong REITs No.53 4,999 - (8) - - 4,991
KB Oaktree Trust No.3 3,159 5,376 70 - - 8,605
Daehan No.36 Office Asset Management
21,500 (635) 1,193 - - 22,058
Company
Rhinos Premier Mezzanine Private
3,005 - (132) - - 2,873
SH Real Estate Loan Investment Type
Private Real Estate Investment Trust 19,903 35,762 1,669 - - 57,334
No.2
Shinhan JigaeNamsan Road Private
40,105 (795) 1,261 - - 40,571
SKS-Yozma Fund No.1 5,945 - 654 - - 6,599
IBKC-METIS Global Contents
4,000 - 550 - - 4,550
Investment Fund
Keistone Unicorn Private Equity Fund 6,300 - (51) - - 6,249
KB Distribution Private Real Estate 3-1 - 24,000 2,651 - - 26,651
Pacific Private Investment Trust No.49-1 - 28,000 641 - - 28,641
KIWOOM Real estate private placement
- 8,474 84 - - 8,558
fund for normal investors No. 31
RIFA Real estate private placement fund
- 5,650 76 - - 5,726
for normal investoes No. 51
Fivetree general private equity fund
- 11,995 286 - - 12,281
No.15
Shinhan-Kunicorn first Fund - 10,000 (169) - - 9,831
Harvest Fund No.3 - 13,000 2,854 - - 15,854
Shinhan Simone Fund Ⅰ - 5,000 (204) - - 4,796
Korea Investment develop seed Trust
- 9,562 680 - - 10,242
No.1
Tiger Green alpah Trust No.29 - 26,180 626 - - 26,806
STIC ALT Global II Private Equity Fund - 10,000 (141) - - 9,859
NH-Brain EV Fund - 13,000 (1,408) - - 11,592
DDI LVC Master Real Estate Investment
- 6,625 (220) - - 6,405
Trust Co., Ltd.
Find-Green New Deal 2nd Equity Fund - 4,549 (41) - - 4,508
ShinhanFitrin 1st Technology Business
- 4,850 (413) - - 4,437
Investment Association
PARATUS No.3 Private Equity Fund - 5,000 (64) - - 4,936
169
(continued):
December 31, 2022

Equity Change in
Golden Route 2nd Startup Venture W
- 3,000 3 - - 3,003
Specialized Private Equity Fund
Koramco Private Real Estate Fund 143 - 3,030 - - - 3,030
Korea Investment Top Mezzanine
- 8,884 1,001 - - 9,885
Private Real Esate Trust No.1
LB YoungNam Logistics Private Trust
- 9,706 42 - - 9,748
No.40
Shinhan-Cognitive Start-up Fund L.P. - 9,200 753 - - 9,953
IGEN2022 No.1 private Equity Fund - 8,280 765 - - 9,045
Cornerstone J&M Fund I - 3,600 (39) - - 3,561
Logisvalley Shinhan REIT Co.,Ltd. - 3,880 (60) (16) - 3,804
KDB Investment Global Healthcare
- 35,000 (532) - - 34,468
Private Equity Fund I
Korea Investment Green Newdeal Infra
- 5,734 (20) - - 5,714
Trust No.1
BTS 2nd Private Equity Fund - 3,934 (162) - - 3,772
Shinhan Global Active REIT Co.Ltd. - 19,900 (678) - - 19,222
NH-J&-IBKC Label Technology Fund - 9,976 (110) - - 9,866
IMM Global Venture Opportunity, LP - 3,115 - - - 3,115
Capstone Develop Frontier Trust - 6,857 - - - 6,857
Nextrade Co., Ltd. - 9,700 - - - 9,700
SH Sustainable Management ESG Short
term Bond Security Feeder Investment - 3,000 11 - - 3,011
Trust No.1
SH 1.5years Maturity Investment Type
- 4,600 1 - - 4,601
Security Investment Trust No.2
Eventus-IBKC LIB Fund - 7,000 (965) - - 6,035
NH-Daishin-Kyobo healthcare 1 Fund - 4,000 (52) - - 3,948
IBKC-Behigh Fund 1st - 3,300 (32) - - 3,268
Nautic Green Innovation ESG Co-
- 4,000 (44) - - 3,956
investment No.1 Private Equity Fund
ON No.1 Private Equity Fund - 6,000 (638) - - 5,362
Digital New Deal Kappa Private Equity
- 5,000 (54) - - 4,946
Fund
Others 170,811 50,920 12,089 - (3,598) 230,222
W 2,913,745 (105,125) 121,697 (24,238) (1,605) 2,904,474
(*1) The Group has stopped recognizing its equity method income or loss due to the carrying value of ‘0’ resulting
from the investees’ cumulative loss.
due to increased equity ratio and BNP Paribas Cardif General Insurance, Ltd. has changed its name to Shinhan EZ
General Insurance, Ltd.
170
(continued):
December 31, 2021

Equity Change in
BNP Paribas Cardif Life Insurance W 50,600 - (660) (5,918) - 44,022
Songrim Partners(*1) - - - - - -
Partners 4th Growth Investment Fund 11,958 (16,144) 12,525 4,694 - 13,033
KTB Newlake Global Healthcare PEF 9,404 - 8 - - 9,412
Daekwang Semiconductor Co., Ltd. 3,631 (3,742) 113 (2) - -
Shinhan-Neoplux Energy Newbiz Fund 14,470 475 1,087 - - 16,032
Shinhan-Albatross tech investment Fund 13,322 (9,000) 6,067 - - 10,389
8,702 (1,733) 210 - - 7,179
Private
Shinhan-Midas Donga Secondary Fund 4,752 (500) (301) - - 3,951
9,968 (7,879) 2,137 - - 4,226
9,945 (2,310) 126 - - 7,761
Equity Fund
Credian Healthcare Private Equity Fund
5,835 (5,835) - - - -
II
9,918 (66) (361) - (4,238) 5,253
21,021 (1,335) 10,017 - - 29,703
Trust No.3
Shinhan Global Healthcare Fund 1(*1) - - - - - -
JB Power TL Investment Type Private
16,186 (15,947) (239) - - -
Placement Special Asset Fund 7
34,938 (2,266) 1,704 - - 34,376
Fund
18,618 (1,204) 2,078 - - 19,492
BNP Paribas Cardif General Insurance 3,895 176 (708) (9) - 3,354
Hermes Private Investment Equity Fund 6,099 (3,167) 6,850 - - 9,782
4,493 331 514 - - 5,338
Fund
Shinhan AIM FoF Fund 1-A 8,760 (79) 475 - - 9,156
IGIS Global Credit Fund 150-1 7,282 (3,246) 1,366 - - 5,402
11,779 (6,933) 3,045 - - 7,891
Fund
Genesis No.1 Private Equity Fund 80,113 388 (24,968) - - 55,533
Korea Omega Project Fund III 3,563 - 727 - - 4,290
Soo Delivery Platform Growth Fund 4,068 - 1,805 - - 5,873
16,983 (5,229) 1,982 - - 13,736
No.1 PEF
Hyungje art printing(*2) - - - - - -
SH MAIN Professional Investment Type
Private Mixed Asset Investment Trust 10,582 24,500 6,467 - - 41,549
No.3
Korea Finance Security 3,055 - (61) - - 2,994
Multimedia Tech Co.Ltd.(*2) - - - - - -
MIEL CO.,LTD.(*1) - - - - - -
171
(continued):
December 31, 2021

Equity Change in
W 32,993 347 1,348 - - 34,688
DB Epic Convertiblebond Private Trust
5,785 (5,538) (247) - - -
No.2
E&Healthcare Investment Fund No.6 15,163 (3,431) (4,866) - - 6,866
One Shinhan Global Fund 1 4,029 (519) 263 - - 3,773
Kiwoom-Shinhan Innovation Fund I 15,969 (5,150) 912 - - 11,731
7,000 - 991 - - 7,991
Investment Fund
47,389 (2,701) 3,617 - - 48,305
Fund No.6
Richmond Private Investment Trust
15,049 (19,411) 4,362 - - -
No.82
Tiger Alternative Real Estate
18,499 (20,848) 2,349 - - -
Professional Private5
28,818 (843) (504) - - 27,471
SH Senior Loan Professional Investment
Type Private Mixed Asset Investment 65,616 (41,622) 1,210 - - 25,204
Trust No.3
NH-Amundi Global Infrastructure Trust
18,819 (1,609) 1,091 - - 18,301
14
10,043 (700) 766 - - 10,109
Trust 1
Mastern Private Private Investment Trust
10,010 (10,332) 322 - - -
68
35,641 (4,981) 2,493 - - 33,153
Milestone Private Real Estate Fund 3 18,528 (472) 488 - - 18,544
IGIS Private Real Estate Investment
8,844 (9,176) 332 - - -
Trust 286
Nomura-Rifa Private Real Estate
8,407 (705) 200 - - 7,902
Investment Trust 31
Type Private Mixed Asset Investment 13,323 (3,511) 424 - - 10,236
Trust No.2
Hana Semiconductor New Technology
24,131 (26,129) 1,998 - - -
Fund
J&Magnet Startup Venture Specialized
5,935 (7,247) 1,312 - - -
Private Equity Fund
Cape IT Fund No.3 10,649 (580) (4) - - 10,065
4,295 3,025 (171) - - 7,149
Fund 1
Stonebridge Corporate 1st Fund 3,239 - (275) - - 2,964
10,827 (681) 620 - - 10,766
Fund V
Korea Credit Bureau 6,976 (90) 809 - - 7,695
Goduck Gangil1 PFV Co., Ltd.(*1) - - - - - -
SBC PFV Co., Ltd. 18,208 12,499 (1,121) - - 29,586
NH-amundi global infra private fund 16 43,839 346 7,823 - - 52,008
IMM Global Private Equity Fund 120,855 (10,462) 8,222 - - 118,615
172
(continued):
December 31, 2021

Equity Change in
HANA Alternative Estate Professional
W 29,631 (1,001) 859 - - 29,489
Private122
Hanwha-Incus Plus New Technology
11,026 (8,284) (2,742) - - -
Fund No.1
Type Private Security Investment Trust 51,210 (1,518) 207 - - 49,899
No.7
SH BNCT Professional Investment Type
286,531 (15,191) 10,859 - - 282,199
PSA EMP Private Equity Fund 9,814 (9,755) (59) - - -
Investment Type Private Real Estate 29,401 (2,630) 1,541 - - 28,312
BRAIN DO PROFESSIONALE
3,441 (3,048) 583 - - 976
PRIVATE No. 27
UI Venture Fund 7th 3,279 (3,269) (10) - - -
Sparklabs-Shinhan Opportunity Fund 1 4,832 - (192) - - 4,640
5,942 - (61) - - 5,881
Fund
14,099 (714) 499 - - 13,884
Trust No.33
Findvalue PreIPO 6th Professional
Investment Type Private Investment 3,002 (3,301) 299 - - -
Trust
17,752 (7,855) 747 - - 10,644
Trust no.4
Goduck Gangil10 PFV Co., Ltd(*1) 32 - (32) - - -
19,485 (911) 1,199 - - 19,773
No.2
IGIS PRIVATE REAL ESTATE TRUST
3,765 (3,765) - - - -
NO.331
48,344 (5,436) 6,309 - - 49,217
TRUST No. 12
Shinhan Healthcare Fund 2(*1) 986 - (75) - (911) -
13,346 (748) 1,112 - - 13,710
Trust No.1
Type Private Security Investment Trust - 174,154 (199) - - 173,955
No.45
Shinhan AIM Real Estate Fund No.2 22,464 1,911 (1,100) - - 23,275
Shinhan AIM Real Estate Fund No.1 46,945 (4,412) 1,779 - - 44,312
SH Daegu Green Power Cogeneration
System Professional Investment Type 32,944 (911) 915 - - 32,948
SH Sangju YC Expressway Professional
Investment Type Private Special Asset 20,902 7 (359) - - 20,550
Investment Trust
SH Global Infrastructure Professional
Investment Type Private Special Asset 6,692 13,667 (1,504) - - 18,855
Investment Trust No.7-2
SH Japan Photovoltaic Private Special
4,845 (4,845) - - - -
Asset Investment Trust No.1
Korea Omega-Shinhan Project Fund I 5,931 2,000 (687) - - 7,244
ST-Bonanja Food tech 1,993 - 1,366 - - 3,359
New Green Shinhan Mezzanine Fund 4,916 (5,622) 706 - - -
KORAMKO-Daum Professional Private
7,528 (7,756) 228 - - -
173
(continued):
December 31, 2021

Equity Change in
W 10,666 2,656 (442) - - 12,880
Private 45
32,349 (1,988) 1,526 - - 31,887
VS Cornerstone Fund 3,464 - (54) - - 3,410
9,580 (28) (12) - - 9,540
KiwoomUnicorn3 New Technology
4,283 (3,633) (650) - - -
Business Investment Fund
Multi Asset The United States Thortons
41,440 (41,607) 167 - - -
Kiwoom Milestone US Real Estate
51,512 (51,512) - - - -
25,430 207 1,387 - - 27,024
Fund2
KB Distribution Private Real Estate1 30,698 (1,423) 1,419 - - 30,694
SH Jigae Namsan BTO professional
Investment Type Private Special Asset 20,712 (22,293) 1,581 - - -
Investment Trust
29,149 (16,798) 665 - - 13,016
Kakao-Shinhan 1st TNYT Fund 5,681 9,000 (184) - - 14,497
10,870 (160) 883 - - 11,593
EQUITY FUND
11,647 (747) 698 - - 11,598
Fund No.40
Mastern Private Real Estate Loan Fund
5,692 1,429 370 - - 7,491
No.2
31,182 (1,734) 1,820 - - 31,268
Fund 29
JR AMC Hungary Budapest Office Fund
12,204 (821) 757 - - 12,140
16
IGIS 372 Real Estate Professional
56,835 (56,835) - - - -
Private
EDNCENTRAL Co.,Ltd.(*1) 1,040 - (1,040) - - -
KoFC-Neoplux R&D-Biz Creation
3,830 (8,388) 4,558 - - -
2013-1 Venture Capital Fund
3,796 (995) 216 - - 3,017
Capital Fund
Gyeonggi-Neoplux Superman Fund 6,399 (2,257) 3,736 - - 7,878
NewWave 6th Fund 6,150 7,575 730 - - 14,455
2,853 - 1,137 - - 3,990
Equity Fund
Neoplux No.3 Private Equity Fund 10,295 10,182 2,124 - - 22,601
PCC Amberstone Private Equity Fund I 22,480 (2,356) 2,666 - - 22,790
KIAMCO POWERLOAN TRUST 4TH 43,955 (164) 1,510 - - 45,301
174
(continued):
December 31, 2021

Equity Change in
W 19,799 (737) 2,255 - - 21,317
Estate Fund II
5,528 (1,350) 244 - - 4,422
PRIVATE 1
Specializing in Start-up and Venture 4,453 - (93) - - 4,360
Business
11,545 (614) 382 - - 11,313
Fund
Harvest Private Equity Fund II 2,982 - 499 - - 3,481
10,008 (247) (77) - - 9,684
5,098 (350) 300 - - 5,048
Trust 20
7,948 (1,112) 691 - - 7,527
2,850 - 1,589 - - 4,439
Fund 5th
3,125 - 122 - - 3,247
PRIVATE 10
2,927 - 1,787 - - 4,714
New Technology
Private Real Estate Investment Trust 44,594 4,103 11,371 3,876 - 63,944
No. 1-1
Private Real Estate Investment Trust 44,594 4,103 11,371 3,876 - 63,944
No. 1-2
Private Placement Real Estate 15,855 - (1,077) - - 14,778
IGIS Professional Investors Private
Investment Real Estate Investment 29,644 (29,644) - - - -
LLC No.395
1,979 3,960 (248) - - 5,691
Technology Fund
Professional Investment Type Private 21,142 5,271 830 - - 27,243
SIMONE Mezzanine Fund No.3 2,980 - 74 - - 3,054
Eum Private Equity Fund No.7 7,872 121 (120) - - 7,873
Startup Venture Specialized Private 5,034 - 2,560 - - 7,594
Equity Fund
Kiwoom Hero No.4 Private Equity Fund 4,707 - (402) - - 4,305
43,975 (4,712) 1,809 - - 41,072
Fund I
SW-S Fund - 7,000 (276) - - 6,724
CL Buyout 1st PEF - 13,875 (84) - - 13,791
Timefolio The Venture-V second - 4,000 572 - - 4,572
Newlake Growth Capital Partners2 PEF - 13,000 (79) - - 12,921
Shinhan Smilegate Global PEF I - 3,376 (40) - - 3,336
- 5,000 197 - - 5,197
Genesis Eco No.1 PEF - 11,292 (162) - - 11,130
175
(continued):
December 31, 2021

Equity Change in
W - 25,620 (1,014) - - 24,606
Fund(*3)
- 6,500 (63) - - 6,437
Technology Fund
J& Moorim Jade Investment Fund - 5,500 40 - - 5,540
Ulmus SHC innovation investment fund - 5,000 192 - - 5,192
- 8,000 (142) - - 7,858
Fund
- 4,500 35 - - 4,535
Venture PEF
- 3,377 313 - - 3,690
Private Equity Fund
- 2,879 176 - - 3,055
Trust 1
- 3,010 280 - - 3,290
Fund 25
IBKC Global Contents Investment Fund - 5,000 (57) - - 4,943
Nautic Smart No.6 Private Equity Fund - 4,000 (26) - - 3,974
Premier Luminous Private Equity Fund - 7,095 (104) - - 6,991
Hanyang-Meritz 1 Fund - 3,500 (17) - - 3,483
KNT 2ND PRIVATE EQUITY FUND - 3,000 1,157 - - 4,157
Maple Mobility Fund - 9,274 (591) - - 8,683
- 4,800 (64) - - 4,736
Equity Fund
JS Shinhan Private Equity Fund - 5,076 (39) - - 5,037
- 8,000 4,169 - - 12,169
Investment Fund 1st
META ESG Private Equity Fund I - 5,726 (49) - - 5,677
SWFV FUND-1 - 9,700 (54) - - 9,646
PHAROS DK FUND - 4,000 (51) - - 3,949
Shinhan VC tomorrow venture fund 1 - 9,113 (71) - - 9,042
Highland 2021-8 Fund - 4,900 (1) - - 4,899
Medicii 2021-3 Fund - 9,752 (24) - - 9,728
Tres-Yujin Trust - 10,000 (5) - - 9,995
Shinhan-Time mezzanine blind Fund - 15,000 (58) - - 14,942
Capstone REITs No.26 - 4,849 (454) - - 4,395
176
(continued):
December 31, 2021

Equity Change in
JB Incheon-Bucheon REITS No.54 W - 5,000 (1) - - 4,999
- 4,173 169 - - 4,342
Trust No.3
JB Hwaseong-Hadong REITs No.53 - 5,000 (1) - - 4,999
KB Oaktree Trust No.3 - 3,141 18 - - 3,159
- 21,500 - - - 21,500
Company
- 3,000 5 - - 3,005
Private Real Estate Investment Trust - 19,426 477 - - 19,903
No.2
- 39,996 109 - - 40,105
SKS-Yozma Fund No.1 - 6,000 (55) - - 5,945
- 4,000 - - - 4,000
Investment Fund
Keistone Unicorn Private Equity Fund - 6,300 - - - 6,300
Others 121,040 63,729 5,881 (3) (5,570) 185,077
W 2,657,768 101,582 158,600 6,514 (10,719) 2,913,745
(*1) The Group has stopped recognizing its equity method income or loss due to the carrying value of ‘0’ resulting
from the investees’ cumulative loss.
(*2) For the year ended December 31, 2021, the Group has stopped recognizing its equity method income or loss to
accumulated deficits and the shares are retired for the year ended December 31, 2021.
(*3) Classified as investments in associates without cash transactions.
177
(c) The statement of financial information as of and for the years ended December 31, 2022 and 2021 are as
follows:
December 31, 2022

Other Total
comprehen- comprehen-
Operating Net profit sive income sive income
Investees Asset Liability revenue (loss) (loss) (loss)
BNP Paribas Cardif Life Insurance W 2,528,558 2,327,352 47,631 (11,901) (80,527) (92,428)
Partners 4th Growth Investment Fund 54,661 496 14,432 27,663 (18,774) 8,889
KTB Newlake Global Healthcare PEF 21,000 55 3,091 2,996 - 2,996
Shinhan-Neoplux Energy Newbiz
66,792 978 3,371 21,618 - 21,618
Fund
Shinhan-Albatross tech investment
24,870 363 1,469 10,429 (383) 10,046
Fund
Meritz AI-SingA330-A Investment
Type Private Placement Special 17,718 2 14,888 14,888 - 14,888
Asset Fund
Meritz AI-SingA330-B Investment
Type Private Placement Special Asset 8,569 6 1,267 1,265 - 1,265
Fund
30,440 20 3,963 1,691 - 1,691
Private
Shinhan -Midas Dong-A Secondary
8,863 - 3,749 3,011 - 3,011
Fund
18,660 269 1,056 784 - 784
Shinhan Praxis K-Growth Global
26,086 4 32,477 31,394 - 31,394
Private Equity Fund
Kiwoom Milestone Professional
46,585 38,663 2,605 (2,584) - (2,584)
Private Real Estate Trust 19
Shinhan Global Healthcare Fund 1 40 4,558 - (1,406) - (1,406)
91,617 45 17,394 8,543 - 8,543
Fund
45,492 1,798 7,431 574 - 574
Hermes Private Investment Equity
19,078 7 - (14,465) - (14,465)
Fund
KDBC-Midas Dong-A Global
18,412 19 7,110 5,689 - 5,689
contents Fund
26,085 249 2,297 1,607 - 1,607
Fund
Shinhan AIM FoF Fund 1-A 40,471 27 16,497 3,617 - 3,617
IGIS Global Credit Fund 150-1 18,779 14 5,436 2,223 - 2,223
18,496 68 1,281 (9,798) - (9,798)
Fund
Genesis No.1 Private Equity Fund 262,825 2 19,226 17,898 - 17,898
Korea Omega Project Fund III 15,610 - - (2,624) - (2,624)
Genesis North America Power
20,898 138 20,864 20,155 - 20,155
Company No.1 PEF
SHBNPP MAIN Professional
Investment Type Private Mixed 185,777 444 - (44,452) - (44,452)
MIEL CO.,LTD. 422 565 36 (1) - (1)
AIP Transportation Specialized
125,545 86 7,398 (3,978) - (3,978)
Privately Placed Fund Trust #1
E&Healthcare Investment Fund No.6 2,839 - 3,243 (14,623) - (14,623)
178
follows(continued):
December 31, 2022

Other Total
One Shinhan Global Fund 1 W 9,575 80 - (6,263) - (6,263)
Kiwoom-Shinhan Innovation Fund I 19,130 249 1,545 (1,581) - (1,581)
139,200 662 10,515 6,925 - 6,925
Fund No.6
Samchully Midstream Private
71,399 47 16,238 (4,512) - (4,512)
Placement Special Asset Fund 5-4
Investment Type Private Mixed 122,479 23 4,534 1,007 - 1,007
NH-Amundi Global Infrastructure
69,933 14 14,823 3,201 - 3,201
Trust 14
9,887 4 384 380 - 380
Trust 1
Vestas Qualified Investors Private
Real Estate Fund Investment Trust 55,618 20 15,784 379 - 379
No.37
59,697 212 1,865 (4,045) - (4,045)
(Derivative Type)
RIFA Real estate private placement
95,314 71,795 13,708 108 - 108
Investment Type Private Mixed 13,967 6 2,226 (9,585) - (9,585)
T&F 2019 bearing Private Equity
Fund Specializing in Start-up and 11,446 6 1,527 1,333 - 1,333
Venture Business
13,832 - 2 (465) - (465)
Fund 1
Stonebridge Corporate 1st Fund 8,211 - 1,575 1,493 - 1,493
Vogo Realty Partners Private Real
50,529 83 3,851 3,637 - 3,637
Estate Fund V
Korea Credit Bureau 144,765 88,766 141,445 (29,498) - (29,498)
Goduck Gangil1 PFV Co., Ltd. 212,608 206,893 187,295 21,478 - 21,478
SBC PFV Co., Ltd. 424,242 290,391 - (4,471) - (4,471)
NH-amundi global infra private fund
112,489 66 32,982 22,026 - 22,026
16
IMM Global Private Equity Fund 451,407 4,821 25,234 (48,679) - (48,679)
SHBNPP BNCT Professional
Investment Type Private Special 362,896 66 10,788 (18,077) - (18,077)
Asset Investment Trust
Investment Type Private Real Estate 43,941 552 25,185 2,665 - 2,665
Sparklabs-Shinhan Opportunity Fund
9,356 - 1,951 1,652 - 1,652
1
20,303 763 92 (161) - (161)
Fund
89,582 53,964 5,202 3,387 - 3,387
Trust No.33
34,970 11 4,402 1,169 - 1,169
Trust no.4
Goduck Gangil10 PFV Co., Ltd. 179,923 163,660 210,961 24,625 - 24,625
Fidelis Global Private Real Estate
30,217 32 - (821) - (821)
Trust No.2
169,704 969 17,932 13,514 - 13,514
TRUST No. 12
Shinhan Global Healthcare Fund 2 32 192 1 (75) - (75)
179
follows(continued):
December 31, 2022

Other Total
Shinhan AIM Real Estate Fund No.2 W 84,946 806 10,262 (4,595) - (4,595)
Shinhan AIM Real Estate Fund No.1 239,734 27,259 15,006 11,925 - 11,925
SHBNPP Daegu Green Power
Cogeneration System Professional
148,236 75 4,456 2,688 - 2,688
Investment Type Private Special
Professional Investment Type
66,408 301 655 (4,315) - (4,315)
Private Special Asset Investment
Trust
SHBNPP Global Infrastructure
34,479 42 4,149 2,310 - 2,310
Trust No.7-2
Korea Omega-Shinhan Project Fund I 20,043 - 1,776 1,555 - 1,555
ST-Bonanja Food tech 6,775 - 202 (275) - (275)
Samsung SRA Real Estate
93,284 7,161 5,721 (7,106) - (7,106)
Professional Private 45[FoFs]
115,311 41 8,791 8,504 - 8,504
VS Cornerstone Fund 8,098 - 1 (131) - (131)
8,006 229 992 729 - 729
123,363 72 32,302 9,571 - 9,571
Fund2
SHBNPP Japan Photovoltaic Private
21,202 99 6,709 2,901 - 2,901
Kakao-Shinhan 1st TNYT Fund 44,003 134 14,778 14,054 - 14,054
13,058 39 6,499 (1,494) - (1,494)
EQUITY FUND
145,569 98,572 4,155 3,122 - 3,122
Fund No.40
Mastern Private Real Estate Loan
19,200 175 919 759 - 759
Fund No.2
LB Scotland Amazon Fulfillment
42,291 39 2,226 795 - 795
Center Fund 29
JR AMC Hungary Budapest Office
38,247 - 3,493 3,493 - 3,493
Fund 16
EDNCENTRAL Co.,Ltd. 114,856 138,293 1,193 (9,338) - (9,338)
30,109 3,949 13,584 7,591 - 7,591
Capital Fund
Gyeonggi-Neoplux Superman Fund 25,739 623 12,768 (5,587) - (5,587)
NewWave 6th Fund 45,981 849 2,167 (3,053) - (3,053)
KTC-NP Growth Champ 2011-2
27,070 5,349 463 (5,288) - (5,288)
Private Equity Fund
Neoplux No.3 Private Equity Fund 207,723 3,194 10,686 (21,454) - (21,454)
PCC Amberstone Private Equity Fund
89,577 2,892 9,177 (10,097) - (10,097)
I
KIAMCO POWERLOAN TRUST
91,908 24 5,024 1,117 - 1,117
4TH
73,584 40 13,201 (2,950) - (2,950)
Estate Fund II
17,833 2 395 (4,280) - (4,280)
PRIVATE 1
180
follows(continued):
December 31, 2022

Other Total
Specializing in Start-up and Venture W 19,257 22 10,655 10,381 - 10,381
Business
71,633 904 29,131 16,720 - 16,720
Fund
Harvest Private Equity Fund II 14,387 157 119 (831) - (831)
Technology Business Investment 37,743 - 4,283 3,883 - 3,883
Fund
3,089 - 820 820 - 820
Trust 20
KIAMCO Vietnam Solar Special
13,473 18 5,271 2,438 - 2,438
Asset Private Investment Trust
10,384 15 227 107 - 107
Fund 5th
19,037 124 136 (486) - (486)
Technology Fund
83,453 36 3,580 1,158 - 1,158
Trust No.2
SIMONE Mezzanine Fund No.3 10,427 8 120 (129) - (129)
Eum Private Equity Fund No.7 43,679 6 7,116 6,587 - 6,587
Kiwoom Hero No.4 Private Equity
16,731 26 399 191 (3,936) (3,745)
Fund
Vogo Canister Professional Trust
127,808 61 22,709 8,743 - 8,743
Private Fund I
SW-S Fund 23,919 - 1,978 1,728 - 1,728
CL Buyout 1st PEF 60,144 214 1 (5,704) - (5,704)
Timefolio The Venture-V second 19,764 - - (2,296) - (2,296)
Newlake Growth Capital Partners2
42,358 592 - (829) - (829)
PEF
Shinhan Smilegate Global PEF I 28,792 - 6,610 6,118 - 6,118
Genesis Eco No.1 PEF 39,363 4 657 1,400 - 1,400
81,123 513 8,166 2,985 - 2,985
Fund
17,269 - - 100 - 100
Technology Fund
J& Moorim Jade Investment Fund 21,837 1 1,134 969 - 969
Helios-KDBC Digital Contents 1st 14,518 87 3,529 3,272 - 3,272
Ulmus SHC innovation investment
20,326 - 1 (1,275) - (1,275)
fund
181
follows(continued):
December 31, 2022

Other Total
W 21,850 33 2 (185) - (185)
Fund
14,405 12 208 (20) - (20)
Venture PEF
12,986 61 946 522 - 522
Private Equity Fund
7,817 - 432 432 - 432
Trust 1
MPLUS Professional Private Real
12,395 2,242 686 686 - 686
Estate Fund 25
IBKC Global Contents Investment
18,739 78 - (1,603) - (1,603)
Fund
Nautic Smart No.6 Private Equity
3,212 91 2,718 2,531 - 2,531
Fund
Premier Luminous Private Equity
35,763 63 10,762 10,534 - 10,534
Fund
Hanyang-Meritz 1 Fund 15,348 - 41 (74) - (74)
KNT 2ND PRIVATE EQUITY FUND 5,182 5 6,186 5,983 - 5,983
Kiwoom-Shinhan Innovation Fund 2 26,475 176 16 (947) - (947)
Maple Mobility Fund 83,540 1 40,442 40,066 - 40,066
SJ ESG Innovative Growth Fund 14,689 - 4,319 4,195 - 4,195
6,641 3 431 422 - 422
Equity Fund
JS Shinhan Private Equity Fund 128,728 1 12 (2,098) - (2,098)
NH Kyobo AI Solution Investment
12,601 - 2,182 2,002 - 2,002
Fund
11,298 25 184 38 (8,314) (8,276)
Investment Fund 1st
META ESG Private Equity Fund I 21,380 - 2 (341) - (341)
SWFV FUND-1 22,678 - - (1,287) - (1,287)
PHAROS DK FUND 15,918 32 - (403) - (403)
Shinhan VC tomorrow venture fund 1 68,808 850 2,775 (645) - (645)
Highland 2021-8 Fund 14,924 154 - (228) - (228)
H-IOTA Fund 38,933 149 356 (64) - (64)
Stonebridge-Shinhan Unicorn
34,621 - 3 (866) - (866)
Secondary Fund
182
follows(continued):
December 31, 2022

Other Total
Tres-Yujin Trust W 20,010 3 1,114 1,111 - 1,111
Shinhan-Time mezzanine blind Fund 26,625 - 42 (3,260) - (3,260)
Capstone REITs No.26 16,709 9,006 - (486) - (486)
JB Incheon-Bucheon REITS No.54 12,695 5 2 (26) - (26)
21,085 105 1,408 1,368 - 1,368
Trust No.3
JB Hwaseong-Hadong REITs No.53 16,090 6 2 (27) - (27)
KB Oaktree Trust No.3 25,822 8 3,266 210 - 210
Daehan No.36 Office Asset
141,037 96,073 5,231 2,047 - 2,047
Management Company
2,880 7 1,137 1,073 - 1,073
Private Real Estate Investment Trust 192,904 53 11,005 5,638 - 5,638
No.2
163,349 82 5,679 5,076 - 5,076
SKS-Yozma Fund No.1 22,110 - 2,505 2,196 - 2,196
12,513 - 1 1,513 - 1,513
Investment Fund
Keistone Unicorn Private Equity Fund 22,318 - - (176) - (176)
KB Distribution Private Real Estate 3-
71,093 24 85 14 - 14
1
Pacific Private Investment Trust
36,126 - - (23) - (23)
No.49-1
KIWOOM Real estate private
placement fund for normal investors 14,278 14 435 260 - 260
No. 31
RIFA Real estate private placement
14,343 28 218 170 - 170
fund for normal investoes No. 51
Fivetree general private equity fund
24,606 33 2,003 1,920 - 1,920
No.15
Shinhan-Kunicorn first Fund 25,658 - 10 (442) - (442)
Harvest Fund No.3 35,577 89 6,855 6,388 - 6,388
Shinhan Simone Fund Ⅰ 12,468 - 24 (532) - (532)
Korea Investment develop seed Trust
26,334 730 1,806 1,702 - 1,702
No.1
Tiger Green alpah Trust No.29 28,200 54 1,431 658 - 658
STIC ALT Global II Private Equity
45,480 130 2 (649) - (649)
Fund
NH-Brain EV Fund 46,369 - 2 (5,631) - (5,631)
DDI LVC Master Real Estate
42,665 43 - (1,466) - (1,466)
Investment Trust Co., Ltd.
Find-Green New Deal 2nd Equity
19,969 - 26 (181) - (181)
Fund
183
follows(continued):
December 31, 2022

Other Total
ShinhanFitrin 1st Technology W
27,520 76 1 (2,556) - (2,556)
Business Investment Association
PARATUS No.3 Private Equity Fund 19,372 123 - (250) - (250)
Golden Route 2nd Startup Venture
13,272 58 73 14 - 14
Koramco Private Real Estate Fund
10,006 6 4 - - -
143
Korea Investment Top Mezzanine
45,126 649 4,554 4,499 - 4,499
Private Real Esate Trust No.1
LB YoungNam Logistics Private
39,001 9 191 169 - 169
Trust No.40
Shinhan-Cognitive Start-up Fund L.P. 30,744 386 899 384 - 384
IGEN2022 No.1 private Equity Fund 32,483 122 3,166 2,737 - 2,737
Cornerstone J&M Fund I 13,355 2 1 (147) - (147)
Logisvalley Shinhan REIT Co.,Ltd. 79,248 55,619 1,000 (296) - (296)
KDB Investment Global Healthcare
143,070 276 - (2,206) - (2,206)
Private Equity Fund I
Korea Investment Green Newdeal
20,438 7 - (70) - (70)
Infra Trust No.1
BTS 2nd Private Equity Fund 15,018 513 1 (625) - (625)
Shinhan Global Active REIT Co.Ltd. 192,742 98,372 - (1,703) - (1,703)
NH-J&-IBKC Label Technology Fund 35,481 4 2 (123) - (123)
IMM Global Venture Opportunity, LP 8,775 - - - - -
Capstone Develop Frontier Trust 32,000 - - - - -
Nextrade Co., Ltd. 141,561 140 - (2,323) - (2,323)
SH Sustainable Management ESG
Short term Bond Security Feeder 11,196 2 72 49 - 49
15,865 - 4 4 - 4
Eventus-IBKC LIB Fund 27,617 27 6 (4,409) - (4,409)
NH-Daishin-Kyobo healthcare 1 Fund 15,792 - 17 (208) - (208)
IBKC-Behigh Fund 1st 10,992 - 1 (108) - (108)
investment No.1 Private Equity 16,569 150 1 (181) - (181)
Fund
ON No.1 Private Equity Fund 18,767 - - (2,233) - (2,233)
Digital New Deal Kappa Private
16,569 149 1 (180) - (180)
Equity Fund
(*) Excluded the financial information of associates that are not subject to equity method due to disposal or of which
the financial information is not available as of end of the year.
184
follows(continued):
December 31, 2021

Other Total
BNP Paribas Cardif Life Insurance W 3,268,153 2,974,519 48,207 (4,499) (39,454) (43,953)
Songrim Partners 1,003 1,065 548 - - -
Partners 4th Growth Investment Fund 60,073 7,939 52,019 50,100 18,774 68,874
KTB Newlake Global Healthcare PEF 30,969 161 552 27 - 27
Shinhan-Neoplux Energy Newbiz
66,213 1,002 20,575 18,016 - 18,016
Fund
Shinhan-Albatross tech investment
20,677 464 12,058 10,912 - 10,912
Fund
35,919 23 5,393 1,138 - 1,138
Private
Shinhan-Midas Donga Secondary
7,902 - 72 (602) - (602)
Fund
17,960 352 27,318 8,906 - 8,906
Shinhan Praxis K-Growth Global
41,193 60 1,217 669 - 669
Private Equity Fund
Kiwoom Milestone Professional
49,101 38,596 2,505 (9,199) - (9,199)
Private Real Estate Trust 19
219,110 79,534 52,789 47,070 - 47,070
Trust No.3
Shinhan Global Healthcare Fund 1 43 3,507 - (1,414) - (1,414)
91,752 84 15,540 4,502 - 4,502
Fund
46,169 1,894 7,743 4,719 - 4,719
BNP Paribas Cardif General Insurance 140,179 78,748 61,951 (6,872) (28) (6,900)
Hermes Private Investment Equity
33,545 8 23,536 23,486 - 23,486
Fund
21,420 - 2,169 2,064 - 2,064
Fund
Shinhan AIM FoF Fund 1-A 36,651 28 4,527 (1,466) - (1,466)
IGIS Global Credit Fund 150-1 21,625 16 3,138 1,763 - 1,763
28,273 - 304 10,910 - 10,910
Fund
Genesis No.1 Private Equity Fund 243,534 - - (109,494) - (109,494)
Korea Omega Project Fund III 18,234 - 3,154 3,093 - 3,093
Soo Delivery Platform Growth Fund 19,578 - 6,243 6,018 - 6,018
Genesis North America Power
34,626 316 11,654 4,951 - 4,951
Company No.1 PEF
SH MAIN Professional Investment
Type Private Mixed Asset 178,427 358 28,997 27,719 - 27,719
Korea Finance Security 35,044 14,966 63,693 (412) - (412)
MIEL CO.,LTD. 491 632 36 (56) - (56)
185
follows(continued):
December 31, 2021

Other Total
AIP Transportation Specialized
W 104,512 7,415 16,239 3,773 - 3,773
Privately Placed Fund Trust #1
E&Healthcare Investment Fund No.6 32,615 - 17,133 (23,116) - (23,116)
One Shinhan Global Fund 1 15,799 41 8,276 (1,280) - (1,280)
Kiwoom-Shinhan Innovation Fund I 23,613 151 4,803 1,823 - 1,823
25,637 66 8,639 3,171 - 3,171
Investment Fund
117,396 49 2,817 1,451 - 1,451
Fund No.6
Samchully Midstream Private
65,966 35 11,141 (4,113) - (4,113)
Placement Special Asset Fund 5-4
SH Senior Loan Professional
NH-Amundi Global Infrastructure
61,005 1 4,134 4 - 4
Trust 14
10,214 4 39 35 - 35
Trust 1
Vestas Qualified Investors Private
Real Estate Fund Investment Trust 55,273 19 6,500 23 - 23
No.37
Milestone Private Real Estate Fund 3 57,956 114 1,880 1,522 - 1,522
97,211 72,103 7,364 639 - 639
Investment Trust 31
SH Senior Loan Professional
Cape IT Fund No.3 30,651 52 2,100 (11) - (11)
14,297 - 3 (342) - (342)
Fund 1
Stonebridge Corporate 1st Fund 6,718 - 1 (622) - (622)
Vogo Realty Partners Private Real
49,842 82 2,110 (2,066) - (2,066)
Estate Fund V
Korea Credit Bureau 129,478 43,981 121,982 8,988 - 8,988
Goduck Gangil1 PFV Co., Ltd 301,513 317,276 88,085 (1,835) - (1,835)
SBC PFV Co., Ltd. 334,262 175,976 - (4,462) - (4,462)
NH-amundi global infra private fund
297,837 193,821 25,560 14,770 - 14,770
16
IMM Global Private Equity Fund 362,514 3,099 50,060 24,933 - 24,933
39,878 38 2,608 1,160 - 1,160
Private122
Type Private Security Investment 268,037 167,939 3,231 415 - 415
Trust No.7
SH BNCT Professional Investment
Type Private Special Asset 389,240 - 14,978 14,978 - 14,978
Investment Trust
Investment Type Private Real Estate 54,914 756 23,920 2,948 - 2,948
BRAIN DO PROFESSIONALE
3,351 - 2,002 2,002 - 2,002
PRIVATE No. 27
Sparklabs-Shinhan Opportunity Fund
9,372 - - (388) - (388)
1
20,215 513 95 (204) - (204)
Fund
186
follows(continued):
December 31, 2021

Other Total
W 87,790 53,808 1,123 440 - 440
Trust No.33
36,030 11 2,538 293 - 293
Trust no.4
Goduck Gangil10 PFV Co., Ltd 253,607 261,969 - (8,526) - (8,526)
Fidelis Global Private Real Estate
25,271 6 1,575 1,532 - 1,532
Trust No.2
172,398 909 23,567 21,983 - 21,983
TRUST No. 12
Shinhan Healthcare Fund 2 35 138 340 (7,310) - (7,310)
64,667 36,415 7,147 2,350 - 2,350
Trust No.1
Shinhan AIM Real Estate Fund No.2 79,162 1,580 9,672 (3,666) - (3,666)
Shinhan AIM Real Estate Fund No.1 226,809 15,901 20,209 8,467 - 8,467
System Professional Investment
149,702 75 4,451 4,152 - 4,152
Type Private Special Asset
Investment Trust
SH Sangju YC Expressway
70,637 236 - (1,231) - (1,231)
Trust
Investment Type Private Special 26,429 33 2,310 (2,105) - (2,105)
Asset Investment Trust No.7-2
Korea Omega-Shinhan Project Fund I 14,488 - - (1,373) - (1,373)
ST-Bonanja Food tech 8,650 - 3,666 3,519 - 3,519
Samsung SRA Real Estate
56,083 4,564 3,833 (1,769) - (1,769)
Professional Private 45
114,645 4,633 5,520 5,265 - 5,265
VS Cornerstone Fund 8,281 - 2 (132) - (132)
15,247 800 1,409 (18) - (18)
104,374 61 6,769 5,351 - 5,351
Fund2
KB Distribution Private Real Estate1 50,014 508 2,335 2,289 - 2,289
43,540 155 7,216 2,216 - 2,216
Kakao-Shinhan 1st TNYT Fund 29,948 133 8 (379) - (379)
57,965 3 4,610 4,418 - 4,418
EQUITY FUND
46,898 - 398 398 - 398
Fund No.40
Mastern Private Real Estate Loan
22,453 139 549 410 - 410
Fund No.2
LB Scotland Amazon Fulfillment
44,614 37 5,177 3,345 - 3,345
Center Fund 29
JR AMC Hungary Budapest Office
38,545 1,271 - - - -
Fund 16
EDNCENTRAL Co.,Ltd. 94,405 96,892 1,381 (5,093) - (5,093)
22,488 3,919 10,294 1,332 - 1,332
Capital Fund
187
follows(continued):
December 31, 2021

Other Total
Gyeonggi-Neoplux Superman Fund W 36,815 620 21,349 17,163 - 17,163
NewWave 6th Fund 48,185 - 4,009 2,434 - 2,434
KTC-NP Growth Champ 2011-2
80,853 9,024 20,479 20,472 - 20,472
Private Equity Fund
Neoplux No.3 Private Equity Fund 226,970 962 38,467 21,233 - 21,233
PCC Amberstone Private Equity Fund
105,169 - 12,174 12,302 - 12,302
I
KIAMCO POWERLOAN TRUST
95,658 24 3,282 3,188 - 3,188
4TH
111,276 4,692 11,332 11,274 - 11,274
Estate Fund II
22,143 31 4,212 1,219 - 1,219
PRIVATE 1
Specializing in Start-up and Venture 15,062 374 - (312) - (312)
Business
58,273 954 7,913 1,932 - 1,932
Fund
Harvest Private Equity Fund II 15,877 97 2,496 2,262 - 2,262
Technology Business Investment 34,379 - 977 (272) - (272)
Fund
13,125 - 125 125 - 125
Trust 20
KIAMCO Vietnam Solar Special
15,065 12 - - - -
Asset Private Investment Trust
18,970 30 6,903 6,778 - 6,778
Fund 5th
CSQUARE SNIPER
5,269 75 425 195 - 195
PROFESSIONAL PRIVATE 10
17,642 42 6,881 6,679 - 6,679
New Technology
Private Real Estate Investment Trust 60,740 59 6,767 6,637 2,339 8,976
No. 1-1
Private Real Estate Investment Trust 60,740 59 6,767 6,637 2,339 8,976
No. 1-2
Private Placement Real Estate 134,667 94,282 6 (8,090) - (8,090)
11,439 - 5 (499) - (499)
Technology Fund
90,848 38 3,650 2,767 - 2,767
Trust No.2
SIMONE Mezzanine Fund No.3 10,404 9 345 253 - 253
Eum Private Equity Fund No.7 37,495 - - (573) - (573)
188
follows(continued):
December 31, 2021

Other Total
Startup Venture Specialized Private W 30,434 59 10,475 10,241 - 10,241
Equity Fund
Kiwoom Hero No.4 Private Equity
20,478 29 1 (1,908) - (1,908)
Fund
Vogo Canister Professional Trust
112,505 72 16,029 4,949 - 4,949
Private Fund I
SW-S Fund 22,191 - - (909) - (909)
CL Buyout 1st PEF 64,518 159 1 (390) - (390)
Timefolio The Venture-V second 22,829 769 3,361 2,941 - 2,941
Newlake Growth Capital Partners2
43,187 - 290 (263) - (263)
PEF
Shinhan Smilegate Global PEF I 23,469 - - (281) - (281)
10,416 17 411 394 - 394
Genesis Eco No.1 PEF 38,369 4 308 (377) - (377)
58,138 513 1,466 (2,375) - (2,375)
Fund
17,430 - - (170) - (170)
Technology Fund
J& Moorim Jade Investment Fund 22,265 6 356 160 - 160
Ulmus SHC innovation investment
21,601 - 956 801 - 801
fund
22,035 33 1 (398) - (398)
Fund
14,418 5 197 113 - 113
Venture PEF
13,346 61 1,275 1,126 - 1,126
Private Equity Fund
7,654 17 156 139 - 139
Trust 1
MPLUS Professional Private Real
8,186 290 451 396 - 396
Estate Fund 25
IBKC Global Contents Investment
20,265 - - (235) - (235)
Fund
Nautic Smart No.6 Private Equity
10,565 32 50 (68) - (68)
Fund
Premier Luminous Private Equity
25,170 3 - (375) - (375)
Fund
Hanyang-Meritz 1 Fund 15,423 - - (77) - (77)
KNT 2ND PRIVATE EQUITY FUND 19,133 9 5,402 5,324 - 5,324
189
follows(continued):
December 31, 2021

Other Total
Maple Mobility Fund W 43,024 1 - (2,930) - (2,930)
6,215 - - (85) - (85)
Equity Fund
JS Shinhan Private Equity Fund 130,967 1 7 (1,036) - (1,036)
24,050 2 1 8,238 - 8,238
Investment Fund 1st
META ESG Private Equity Fund I 21,722 - 1 (178) - (178)
SWFV FUND-1 24,055 90 - (135) - (135)
PHAROS DK FUND 16,349 60 - (210) - (210)
Shinhan VC tomorrow venture fund 1 22,603 - 23 (397) - (397)
Highland 2021-8 Fund 15,000 2 - (2) - (2)
Medicii 2021-3 Fund 39,217 15 - (98) - (98)
Tres-Yujin Trust 20,000 11 - (11) - (11)
Shinhan-Time mezzanine blind Fund 29,885 - - (115) - (115)
Capstone REITs No.26 12,223 3,433 - - - -
JB Incheon-Bucheon REITS No.54 12,718 2 - (2) - (2)
13,146 120 532 506 - 506
Trust No.3
JB Hwaseong-Hadong REITs No.53 16,113 2 - (2) - (2)
KB Oaktree Trust No.3 9,552 77 130 52 - 52
Daehan No.36 Office Asset
133,884 95,993 1,000 111 - 111
Management Company
10,759 - 19 17 - 17
Private Real Estate Investment Trust 66,959 12 1,617 1,605 - 1,605
No.2
161,417 27 467 440 - 440
SKS-Yozma Fund No.1 19,915 - 1 (185) - (185)
(*) Excluded the financial information of associates that are not subject to equity method due to disposal or of which
the financial information is not available as of end of the year.
190
(d) Reconciliation of the financial information to the carrying value of its interests in the associates as of December
31, 2022 and 2021 are as follows:
December 31, 2022

Interests in the
Net assets Ownership net assets Intra-group Carrying
Investees (a) (%)(b) (a)*(b) transactions Other value
BNP Paribas Cardif Life Insurance W 201,205 14.99 30,161 8 - 30,169
Partners 4th Growth Investment Fund 54,165 25.00 13,542 - - 13,542
KTB Newlake Global Healthcare PEF 20,945 20.57 4,309 - - 4,309
Shinhan-Neoplux Energy Newbiz Fund 65,814 31.66 20,837 - - 20,837
Shinhan-Albatross tech investment Fund 24,507 50.00 12,253 - - 12,253
Meritz AI-SingA330-A Investment Type
17,716 23.89 4,232 - - 4,232
Meritz AI-SingA330-B Investment Type
8,563 20.16 1,726 - - 1,726
VOGO Debt Strategy Qualified IV Private 30,420 20.00 6,085 - - 6,085
Shinhan -Midas Dong-A Secondary Fund 8,863 50.00 4,431 - - 4,431
18,391 24.00 4,414 - - 4,414
26,082 14.15 3,691 - - 3,691
Equity Fund
7,922 50.00 3,961 - - 3,961
Shinhan Global Healthcare Fund 1 (*2) (4,518) 4.41 (199) - 199 -
KB NA Hickory Private Special Asset Fund 91,572 37.50 34,339 - - 34,339
Koramco Europe Core Private Placement
43,694 44.02 19,236 - - 19,236
Real Estate Fund No.2-2
Hermes Private Investment Equity Fund 19,071 29.17 5,562 - - 5,562
KDBC-Midas Dong-A Global contents Fund 18,393 23.26 4,277 - - 4,277
Shinhan-Nvestor Liquidity Solution Fund 25,836 24.92 6,438 - - 6,438
Shinhan AIM FoF Fund 1-A 40,444 25.00 10,110 - - 10,110
IGIS Global Credit Fund 150-1 18,765 25.00 4,692 - - 4,692
Partner One Value up I Private Equity Fund 18,428 27.91 5,144 - - 5,144
Genesis No.1 Private Equity Fund 262,823 22.80 59,924 - - 59,924
Korea Omega Project Fund III 15,610 23.53 3,674 - - 3,674
20,760 39.11 8,118 - - 8,118
No.1 PEF
SHBNPP MAIN Professional Investment
Type Private Mixed Asset Investment 185,333 23.33 43,244 - - 43,244
Trust No.3
MIEL CO.,LTD. (*2) (143) 28.77 (41) - 41 -
125,459 35.73 44,821 - - 44,821
E&Healthcare Investment Fund No.6 2,839 21.05 597 - - 597
191
31, 2022 and 2021 are as follows (continued):
December 31, 2022

Interests in the
One Shinhan Global Fund 1 W 9,495 20.52 1,948 - - 1,948
Kiwoom-Shinhan Innovation Fund I 18,881 50.00 9,441 - - 9,441
Midas Asset Global CRE Debt Private Fund
138,538 41.16 57,029 - - 57,029
No.6
71,352 42.92 30,624 - - 30,624
Investment Type Private Mixed Asset 122,456 20.00 24,492 - - 24,492
NH-Amundi Global Infrastructure Trust 14 69,919 30.00 20,975 - - 20,975
Jarvis Memorial Private Investment Trust 1 9,883 99.01 9,786 - - 9,786
55,598 60.00 33,357 - - 33,357
59,485 32.06 19,071 - - 19,071
(Derivative Type)
RIFA Real estate private placement fund for
23,519 31.31 7,364 - - 7,364
normal investors No. 31
Investment Type Private Mixed Asset 13,961 21.27 2,969 - - 2,969
T&F 2019 bearing Private Equity Fund
Specializing in Start-up and Venture 11,440 28.25 3,231 - - 3,231
Business
FuturePlay-Shinhan TechInnovation Fund 1 13,832 50.00 6,916 - - 6,916
Stonebridge Corporate 1st Fund 8,211 44.12 3,622 - - 3,622
50,446 21.64 10,915 - - 10,915
Fund V
Korea Credit Bureau 55,999 9.00 5,039 - - 5,039
Goduck Gangil1 PFV Co., Ltd. 5,715 1.04 60 - - 60
SBC PFV Co., Ltd. (*3) 133,851 25.00 33,463 - (4,995) 28,468
NH-amundi global infra private fund 16 112,423 50.00 56,211 - - 56,211
IMM Global Private Equity Fund 446,586 33.00 147,384 - - 147,384
SHBNPP BNCT Professional Investment
Type Private Special Asset Investment 362,830 72.50 263,052 - - 263,052
Trust
Deutsche Global Professional Investment
Type Private Real Estate Investment Trust 43,389 52.28 22,683 - - 22,683
No. 24
Sparklabs-Shinhan Opportunity Fund 1 9,356 49.50 4,631 - - 4,631
BNW Tech-Innovation Private Equity Fund 19,540 29.85 5,833 - - 5,833
IGIS Real-estate Private Investment Trust
35,618 40.86 14,552 - - 14,552
No.33
WWG Global Real Estate Investment Trust
34,959 29.55 10,331 - - 10,331
no.4
Goduck Gangil10 PFV Co., Ltd. 16,263 19.90 3,236 - - 3,236
30,185 79.70 24,055 - (2,110) 21,945
No.2 (*1)
168,735 28.70 48,427 - - 48,427
TRUST No. 12
Shinhan Global Healthcare Fund 2 (*2) (160) 13.68 (22) - 22 -
192
December 31, 2022

Interests in the
Shinhan AIM Real Estate Fund No.2 W 84,140 30.00 25,243 - - 25,243
Shinhan AIM Real Estate Fund No.1 212,475 21.01 44,642 - - 44,642
SHBNPP Daegu Green Power Cogeneration
System Professional Investment Type 148,161 22.02 32,627 - - 32,627
Professional Investment Type Private 66,107 29.19 19,296 - - 19,296
SHBNPP Global Infrastructure Professional
Investment Type Private Special Asset 34,437 71.43 24,598 - - 24,598
Korea Omega-Shinhan Project Fund I 20,043 50.00 10,022 - - 10,022
ST-Bonanja Food tech 6,775 38.83 2,631 - - 2,631
86,123 25.00 21,531 - 119 21,650
Private 45[FoFs] (*1)
IBK Global New Renewable Energy Special
115,270 28.98 33,412 - - 33,412
Asset Professional Private2
VS Cornerstone Fund 8,098 41.18 3,335 - - 3,335
Aone Mezzanine Opportunity Professional
7,777 64.41 5,009 - - 5,009
Private
123,291 25.91 31,941 - - 31,941
Fund2
SHBNPP Japan Photovoltaic Private Special
21,103 30.00 6,332 - - 6,332
Kakao-Shinhan 1st TNYT Fund 43,869 48.62 21,330 - - 21,330
13,019 20.00 2,603 - - 2,603
EQUITY FUND
Pacific Private Placement Real Estate Fund
46,997 24.73 11,622 - - 11,622
No.40
Mastern Private Real Estate Loan Fund No.2 19,025 33.57 6,387 - - 6,387
42,252 70.14 29,637 - - 29,637
Fund 29
JR AMC Hungary Budapest Office Fund 16 38,247 32.57 12,457 - - 12,457
EDNCENTRAL Co.,Ltd. (*2) (23,437) 13.47 (3,156) - 3,156 -
Future-Creation Neoplux Venture Capital
26,160 16.25 4,251 - - 4,251
Fund
Gyeonggi-Neoplux Superman Fund 25,116 21.76 5,467 - - 5,467
NewWave 6th Fund 45,132 30.00 13,540 - - 13,540
21,721 5.56 1,207 - - 1,207
Equity Fund
Neoplux No.3 Private Equity Fund 204,529 10.00 20,454 - - 20,454
PCC Amberstone Private Equity Fund I 86,685 21.67 18,785 - - 18,785
KIAMCO POWERLOAN TRUST 4TH 91,884 47.37 43,524 - - 43,524
Mastern Opportunity Seeking Real Estate
73,544 20.00 14,710 - - 14,710
Fund II
AION ELFIS PROFESSIONAL PRIVATE 1 17,831 20.00 3,566 - - 3,566
Business
193
December 31, 2022

Interests in the
Neoplux Market-Frontier Secondary Fund W 70,729 19.74 13,960 - - 13,960
Harvest Private Equity Fund II 14,230 22.06 3,139 - - 3,139
37,743 28.17 10,632 - - 10,632
KAIM Real-estate Private Investment Trust
3,089 38.46 1,187 - - 1,187
20
13,455 50.00 6,727 - - 6,727
Daishin New Technology Investment Fund
10,369 23.44 2,430 - - 2,430
5th
18,913 49.75 9,409 - - 9,409
Technology Fund
SIMONE Mezzanine Fund No.3 10,419 28.97 3,017 - - 3,017
Eum Private Equity Fund No.7 43,673 21.00 9,170 - - 9,170
Kiwoom Hero No.4 Private Equity Fund 16,705 21.05 3,517 - - 3,517
127,747 36.27 46,329 - - 46,329
Fund I
SW-S Fund 23,919 30.30 7,248 - - 7,248
CL Buyout 1st PEF 59,930 21.43 12,842 - - 12,842
Timefolio The Venture-V second 19,764 20.73 4,096 - - 4,096
Newlake Growth Capital Partners2 PEF 41,766 29.91 12,496 - - 12,496
Shinhan Smilegate Global PEF I (*1) 28,792 14.21 4,091 - (320) 3,771
Genesis Eco No.1 PEF 39,359 29.01 11,418 - - 11,418
SHINHAN-NEO Market-Frontier 2nd Fund 80,610 42.70 34,420 - - 34,420
17,269 36.93 6,377 - - 6,377
Technology Fund
J& Moorim Jade Investment Fund 21,836 24.89 5,434 - - 5,434
Helios-KDBC Digital Contents 1st 14,431 23.26 3,356 - - 3,356
Ulmus SHC innovation investment fund 20,326 24.04 4,886 - - 4,886
Mirae Asset Partners X Private Equity Fund 21,817 35.71 7,792 - - 7,792
T Core Industrial Technology 1st Venture
14,393 31.47 4,529 - - 4,529
PEF
Curious Finale Corporate Recovery Private
12,925 27.78 3,591 - - 3,591
Equity Fund
TI First Property Private Investment Trust 1 7,817 40.00 3,127 - - 3,127
10,153 41.67 4,231 - - 4,231
Fund 25
IBKC Global Contents Investment Fund 18,661 24.39 4,552 - - 4,552
Nautic Smart No.6 Private Equity Fund 3,121 37.74 1,178 - - 1,178
194
(d) Reconciliation of the financial information to the carrying values of its interests in the associates as of December
December 31, 2022

Interests in the
Premier Luminous Private Equity Fund W 35,700 25.12 8,966 - - 8,966
Hanyang-Meritz 1 Fund 15,348 22.58 3,466 - - 3,466
KNT 2ND PRIVATE EQUITY FUND (*1) 5,177 21.74 1,124 - (174) 950
Kiwoom-Shinhan Innovation Fund 2 26,299 42.86 11,271 - - 11,271
Maple Mobility Fund 83,539 20.18 16,859 - - 16,859
SJ ESG Innovative Growth Fund 14,689 28.57 4,197 - - 4,197
6,638 76.19 5,057 - - 5,057
Equity Fund
JS Shinhan Private Equity Fund 128,727 3.85 4,953 - - 4,953
NH Kyobo AI Solution Investment Fund 12,601 26.09 3,288 - - 3,288
11,273 50.60 5,704 - - 5,704
Investment Fund 1st
META ESG Private Equity Fund I 21,380 27.40 5,857 - - 5,857
SWFV FUND-1 22,678 40.25 9,128 - - 9,128
PHAROS DK FUND 15,886 24.14 3,835 - - 3,835
Shinhan VC tomorrow venture fund 1 67,958 39.62 26,926 - - 26,926
Highland 2021-8 Fund 14,770 32.67 4,826 - - 4,826
H-IOTA Fund 38,784 24.81 9,623 - - 9,623
34,621 17.57 6,082 - - 6,082
Fund
Tres-Yujin Trust 20,007 50.00 10,004 - - 10,004
Shinhan-Time mezzanine blind Fund 26,625 50.00 13,312 - - 13,312
Capstone REITs No.26 7,703 50.00 3,852 - - 3,852
JB Incheon-Bucheon REITS No.54 12,690 39.31 4,989 - - 4,989
20,980 33.33 6,993 - - 6,993
Trust No.3
JB Hwaseong-Hadong REITs No.53 16,084 31.03 4,991 - - 4,991
KB Oaktree Trust No.3 25,814 33.33 8,605 - - 8,605
44,964 48.05 21,604 - 454 22,058
Company (*1)
2,873 27.93 802 - 2,071 2,873
Investment Fund No.1 (*1)
192,851 29.73 57,334 - - 57,334
Private Real Estate Investment Trust No.2
Shinhan JigaeNamsan Road Private Special
163,267 24.85 40,571 - - 40,571
SKS-Yozma Fund No.1 22,110 29.85 6,599 - - 6,599
IBKC-METIS Global Contents Investment
12,513 36.36 4,550 - - 4,550
Fund
Keistone Unicorn Private Equity Fund 22,318 28.00 6,249 - - 6,249
KB Distribution Private Real Estate 3-1 71,069 37.50 26,651 - - 26,651
Pacific Private Investment Trust No.49-1 36,126 79.28 28,641 - - 28,641
KIWOOM Real estate private placement
14,264 60.00 8,558 - - 8,558
RIFA Real estate private placement fund for
14,315 40.00 5,726 - - 5,726
normal investoes No. 51
Fivetree general private equity fund No.15 24,573 49.98 12,281 - - 12,281
Shinhan-Kunicorn first Fund 25,658 38.31 9,831 - - 9,831
Harvest Fund No.3 35,488 44.67 15,854 - - 15,854
Shinhan Simone Fund Ⅰ 12,468 38.46 4,796 - - 4,796
Korea Investment develop seed Trust No.1 25,604 40.00 10,242 - - 10,242
195
December 31, 2022

Interests in the
Tiger Green alpah Trust No.29 W 28,146 95.24 26,806 - - 26,806
STIC ALT Global II Private Equity Fund 45,350 21.74 9,859 - - 9,859
NH-Brain EV Fund 46,369 25.00 11,592 - - 11,592
42,622 15.00 6,393 - 12 6,405
Trust Co., Ltd. (*1)
Find-Green New Deal 2nd Equity Fund 19,969 22.57 4,508 - - 4,508
27,444 16.17 4,437 - - 4,437
Investment Association
PARATUS No.3 Private Equity Fund 19,249 25.64 4,936 - - 4,936
Golden Route 2nd Startup Venture
13,214 22.73 3,003 - - 3,003
Koramco Private Real Estate Fund 143 10,000 30.30 3,030 - - 3,030
Korea Investment Top Mezzanine Private
44,477 22.22 9,885 - - 9,885
Real Esate Trust No.1
LB YoungNam Logistics Private Trust
38,992 25.00 9,748 - - 9,748
No.40
Shinhan-Cognitive Start-up Fund L.P. (*1) 30,358 32.74 9,939 - 14 9,953
IGEN2022 No.1 private Equity Fund 32,361 27.95 9,045 - - 9,045
Cornerstone J&M Fund I 13,353 26.67 3,561 - - 3,561
Logisvalley Shinhan REIT Co.,Ltd. (*1) 23,629 20.27 4,790 - (986) 3,804
KDB Investment Global Healthcare Private
142,794 24.14 34,468 - - 34,468
Equity Fund I
Korea Investment Green Newdeal Infra
20,431 27.97 5,714 - - 5,714
Trust No.1
BTS 2nd Private Equity Fund 14,505 26.00 3,772 - - 3,772
Shinhan Global Active REIT Co.Ltd. 94,370 20.37 19,222 - - 19,222
NH-J&-IBKC Label Technology Fund 35,477 27.81 9,866 - - 9,866
IMM Global Venture Opportunity, LP 8,775 35.50 3,115 - - 3,115
Capstone Develop Frontier Trust 32,000 21.43 6,857 - - 6,857
Nextrade Co., Ltd. (*1) 141,421 8.00 11,314 - (1,614) 9,700
term Bond Security Feeder Investment 11,194 26.90 3,011 - - 3,011
Trust No.1
15,865 29.00 4,601 - - 4,601
Eventus-IBKC LIB Fund 27,590 21.88 6,035 - - 6,035
NH-Daishin-Kyobo healthcare 1 Fund 15,792 25.00 3,948 - - 3,948
IBKC-Behigh Fund 1st 10,992 29.73 3,268 - - 3,268
16,419 24.10 3,956 - - 3,956
investment No.1 Private Equity Fund
ON No.1 Private Equity Fund 18,767 28.57 5,362 - - 5,362
Digital New Deal Kappa Private Equity
16,420 30.12 4,946 - - 4,946
Fund
Others 797,590 - 228,801 - 1,422 230,223
W 9,416,618 - 2,907,155 8 (2,689) 2,904,474
(*1) Other represents the adjustments of fair value when acquired.
(*2) Others are the amount of fair value adjustments that occurred at the time of acquisition and accumulated losses
that were not recognized due to the suspension of equity method recognition as the investment account balance became
“0” due to the accumulation of losses for the current period.
(*3) The adjustments for others are the unrecognized equity method for preferred stocks without voting rights issued
by the invested company.
196
December 31, 2021

Interests in the
BNP Paribas Cardif Life Insurance W 293,634 14.99 44,039 (17) - 44,022
Songrim Partners(*1) (62) 35.34 (22) - 22 -
Partners 4th Growth Investment Fund 52,134 25.00 13,033 - - 13,033
KTB Newlake Global Healthcare PEF(*1) 30,808 30.00 9,299 - 113 9,412
Shinhan-Neoplux Energy Newbiz Fund 65,211 31.66 16,032 - - 16,032
Shinhan-Albatross tech investment Fund 20,213 50.00 10,389 - - 10,389
VOGO Debt Strategy Qualified IV Private 35,896 20.00 7,179 - - 7,179
Shinhan-Midas Donga Secondary Fund 7,902 50.00 3,951 - - 3,951
17,608 24.00 4,226 - - 4,226
41,133 18.87 7,761 - - 7,761
Equity Fund
10,505 50.00 5,253 - - 5,253
AIP EURO Green Private Real Estate Trust
139,576 21.28 29,703 - - 29,703
No.3
Shinhan Global Healthcare Fund 1(*1) (3,464) 4.41 (153) - 153 -
KB NA Hickory Private Special Asset Fund 91,668 37.50 34,376 - - 34,376
Koramco Europe Core Private Placement
44,275 44.02 19,492 - - 19,492
Real Estate Fund No.2-2
BNP Paribas Cardif General Insurance 61,431 5.46 3,354 - - 3,354
Hermes Private Investment Equity Fund 33,537 29.17 9,782 - - 9,782
Shinhan-Nvestor Liquidity Solution Fund 21,420 24.92 5,338 - - 5,338
Shinhan AIM FoF Fund 1-A 36,623 25.00 9,156 - - 9,156
IGIS Global Credit Fund 150-1 21,609 25.00 5,402 - - 5,402
Partner One Value up I Private Equity Fund 28,273 27.91 7,891 - - 7,891
Genesis No.1 Private Equity Fund 243,534 22.80 55,533 - - 55,533
Korea Omega Project Fund III 18,234 23.53 4,290 - - 4,290
Soo Delivery Platform Growth Fund 19,578 30.00 5,873 - - 5,873
34,310 40.03 13,736 - - 13,736
No.1 PEF
Private Mixed Asset Investment Trust 178,069 23.33 41,549 - - 41,549
No.3
Korea Finance Security 20,078 14.91 2,994 - - 2,994
MIEL CO.,LTD.(*1) (141) 28.77 (41) - 41 -
197
December 31, 2021

Interests in the
W 97,097 35.73 34,688 - - 34,688
E&Healthcare Investment Fund No.6 32,615 21.05 6,866 - - 6,866
One Shinhan Global Fund 1 15,758 20.56 3,773 - - 3,773
Kiwoom-Shinhan Innovation Fund I 23,462 50.00 11,731 - - 11,731
Daishin-K&T New Technology Investment
25,571 31.25 7,991 - - 7,991
Fund
Midas Asset Global CRE Debt Private Fund
117,347 41.16 48,305 - - 48,305
No.6
65,931 42.92 27,471 - - 27,471
Trust No.3
NH-Amundi Global Infrastructure Trust 14 61,004 30.00 18,301 - - 18,301
Jarvis Memorial Private Investment Trust 1 10,210 99.01 10,109 - - 10,109
55,254 60.00 33,153 - - 33,153
Milestone Private Real Estate Fund 3 57,842 32.06 18,544 - - 18,544
Nomura-Rifa Private Real Estate Investment
25,108 31.31 7,902 - - 7,902
Trust 31
Trust No.2
Cape IT Fund No.3 30,599 32.89 10,065 - - 10,065
FuturePlay-Shinhan TechInnovation Fund 1 14,297 50.00 7,149 - - 7,149
Stonebridge Corporate 1st Fund 6,718 44.12 2,964 - - 2,964
49,760 21.64 10,766 - - 10,766
Fund V
Korea Credit Bureau 85,497 9.00 7,695 - - 7,695
Goduck Gangil1 PFV Co., Ltd(*1) (15,763) 1.04 (164) - 164 -
SBC PFV Co., Ltd.(*2) 158,286 25.00 34,581 - (4,995) 29,586
NH-amundi global infra private fund 16 104,016 50.00 52,008 - - 52,008
IMM Global Private Equity Fund 359,415 33.00 118,615 - - 118,615
39,840 74.02 29,489 - - 29,489
Private122
SH Corporate Professional Investment Type
100,098 45.96 49,899 - - 49,899
Private Security Investment Trust No.7
SH BNCT Professional Investment Type
389,240 72.50 282,199 - - 282,199
Deutsche Global Professional Investment
Type Private Real Estate Investment Trust 54,158 52.28 28,312 - - 28,312
No. 24
BRAIN DO PROFESSIONALE PRIVATE
3,351 29.13 976 - - 976
No. 27
Sparklabs-Shinhan Opportunity Fund 1 9,372 49.50 4,640 - - 4,640
BNW Tech-Innovation Private Equity Fund 19,702 29.85 5,881 - - 5,881
198
December 31, 2021

Interests in the
IGIS Real-estate Private Investment Trust
W 33,982 40.86 13,884 - - 13,884
No.33
WWG Global Real Estate Investment Trust
36,019 29.55 10,644 - - 10,644
no.4
Goduck Gangil10 PFV Co., Ltd(*1) (8,362) 19.90 (1,664) - 1,664 -
25,265 78.26 19,773 - - 19,773
No.2
171,489 28.70 49,217 - - 49,217
TRUST No. 12
Shinhan Healthcare Fund 2(*1) (103) 13.68 (14) - 14 -
Pebblestone CGV Private Real Estate Trust
28,252 48.53 13,710 - - 13,710
No.1
System Professional Investment Type 149,627 22.02 32,948 - - 32,948
SH Sangju YC Expressway Professional
Investment Trust
Korea Omega-Shinhan Project Fund I 14,488 50.00 7,244 - - 7,244
ST-Bonanja Food tech 8,650 38.83 3,359 - - 3,359
51,519 25.00 12,880 - - 12,880
Private 45
IBK Global New Renewable Energy Special
110,012 28.98 31,887 - - 31,887
Asset Professional Private2
VS Cornerstone Fund 8,281 41.18 3,410 - - 3,410
Aone Mezzanine Opportunity Professional
14,447 66.09 9,540 - - 9,540
Private
104,313 25.91 27,024 - - 27,024
Fund2
KB Distribution Private Real Estate1 49,506 62.00 30,694 - - 30,694
SH Japan Photovoltaic Private Special Asset
43,385 30.00 13,016 - - 13,016
Kakao-Shinhan 1st TNYT Fund 29,815 48.62 14,497 - - 14,497
57,962 20.00 11,593 - - 11,593
EQUITY FUND
Pacific Private Placement Real Estate Fund
46,898 24.73 11,598 - - 11,598
No.40
Mastern Private Real Estate Loan Fund No.2 22,314 33.57 7,491 - - 7,491
44,577 70.14 31,268 - - 31,268
Fund 29
JR AMC Hungary Budapest Office Fund 16 37,274 32.57 12,140 - - 12,140
EDNCENTRAL Co.,Ltd.(*1) (2,487) 19.87 (494) - 494 -
18,569 16.25 3,017 - - 3,017
Fund
Gyeonggi-Neoplux Superman Fund 36,195 21.76 7,878 - - 7,878
199
December 31, 2021

Interests in the
NewWave 6th Fund W 48,185 30.00 14,455 - - 14,455
71,829 5.56 3,990 - - 3,990
Equity Fund
Neoplux No.3 Private Equity Fund 226,008 10.00 22,601 - - 22,601
PCC Amberstone Private Equity Fund I 105,169 21.67 22,790 - - 22,790
KIAMCO POWERLOAN TRUST 4TH 95,634 47.37 45,301 - - 45,301
Mastern Opportunity Seeking Real Estate
106,584 20.00 21,317 - - 21,317
Fund II
AION ELFIS PROFESSIONAL PRIVATE 1 22,112 20.00 4,422 - - 4,422
Business
Neoplux Market-Frontier Secondary Fund 57,319 19.74 11,313 - - 11,313
Harvest Private Equity Fund II 15,780 22.06 3,481 - - 3,481
34,379 28.17 9,684 - - 9,684
KAIM Real-estate Private Investment Trust
13,125 38.46 5,048 - - 5,048
20
15,053 50.00 7,527 - - 7,527
Daishin New Technology Investment Fund
18,940 23.44 4,439 - - 4,439
5th
5,194 62.50 3,247 - - 3,247
PRIVATE 10
Acurus Hyundai Investment Partners New
17,600 26.79 4,714 - - 4,714
Technology
IGIS GLIP Professional Investment Private
60,681 97.10 63,944 - - 63,944
Real Estate Investment Trust No. 1-1
IGIS GLIP Professional Investment Private
60,681 97.10 63,944 - - 63,944
Real Estate Investment Trust No. 1-2
Pacific Sunny Professional Investors Private
Placement Real Estate Investment 40,385 25.00 14,778 - - 14,778
Company No.45
11,439 49.75 5,691 - - 5,691
Technology Fund
SIMONE Mezzanine Fund No.3 10,395 29.38 3,054 - - 3,054
Eum Private Equity Fund No.7 37,495 21.00 7,873 - - 7,873
Kiwoom Private Equity Ant-Man Startup
30,375 25.00 7,594 - - 7,594
Venture Specialized Private Equity Fund
Kiwoom Hero No.4 Private Equity Fund 20,449 21.05 4,305 - - 4,305
112,433 36.53 41,072 - - 41,072
Fund I
SW-S Fund 22,191 30.30 6,724 - - 6,724
CL Buyout 1st PEF 64,359 21.43 13,791 - - 13,791
Timefolio The Venture-V second 22,060 20.73 4,572 - - 4,572
Newlake Growth Capital Partners2 PEF 43,187 29.91 12,921 - - 12,921
200
December 31, 2021

Interests in the
Shinhan Smilegate Global PEF I W 23,469 14.21 3,336 - - 3,336
10,399 49.98 5,197 - - 5,197
Genesis Eco No.1 PEF 38,365 29.01 11,130 - - 11,130
SHINHAN-NEO Market-Frontier 2nd Fund 57,625 42.70 24,606 - - 24,606
17,430 36.93 6,437 - - 6,437
Technology Fund
J& Moorim Jade Investment Fund 22,259 24.89 5,540 - - 5,540
Ulmus SHC innovation investment fund 21,601 24.04 5,192 - - 5,192
Mirae Asset Partners X Private Equity Fund 22,002 35.71 7,858 - - 7,858
T Core Industrial Technology 1st Venture
14,413 31.47 4,535 - - 4,535
PEF
Curious Finale Corporate Recovery Private
13,285 27.78 3,690 - - 3,690
Equity Fund
TI First Property Private Investment Trust 1 7,637 40.00 3,055 - - 3,055
7,896 41.67 3,290 - - 3,290
Fund 25
IBKC Global Contents Investment Fund 20,265 24.39 4,943 - - 4,943
Nautic Smart No.6 Private Equity Fund 10,533 37.74 3,974 - - 3,974
Premier Luminous Private Equity Fund 25,167 27.78 6,991 - - 6,991
Hanyang-Meritz 1 Fund 15,423 22.58 3,483 - - 3,483
KNT 2ND PRIVATE EQUITY FUND 19,124 21.74 4,157 - - 4,157
Maple Mobility Fund 43,023 20.18 8,683 - - 8,683
6,215 76.19 4,736 - - 4,736
Equity Fund
JS Shinhan Private Equity Fund 130,966 3.85 5,037 - - 5,037
24,048 50.60 12,169 - - 12,169
Investment Fund 1st
META ESG Private Equity Fund I 21,722 27.40 5,677 - - 5,677
SWFV FUND-1 23,965 40.25 9,646 - - 9,646
PHAROS DK FUND 16,289 24.24 3,949 - - 3,949
Shinhan VC tomorrow venture fund 1 22,603 39.62 9,042 - - 9,042
Highland 2021-8 Fund 14,998 32.67 4,899 - - 4,899
Medicii 2021-3 Fund 39,202 24.81 9,728 - - 9,728
Tres-Yujin Trust 19,989 50.00 9,995 - - 9,995
Shinhan-Time mezzanine blind Fund 29,885 50.00 14,942 - - 14,942
Capstone REITs No.26 8,790 50.00 4,395 - - 4,395
JB Incheon-Bucheon REITS No.54 12,716 39.31 4,999 - - 4,999
13,026 33.33 4,342 - - 4,342
Trust No.3
JB Hwaseong-Hadong REITs No.53 16,111 31.03 4,999 - - 4,999
KB Oaktree Trust No.3 9,475 33.33 3,159 - - 3,159
37,891 48.05 18,206 - 3,294 21,500
Company(*1)
10,759 27.93 3,005 - - 3,005
66,947 29.73 19,903 - - 19,903
Private Real Estate Investment Trust No.2
Shinhan JigaeNamsan Road Private Special
161,390 24.85 40,105 - - 40,105
SKS-Yozma Fund No.1 19,915 29.85 5,945 - - 5,945
Others 666,941 - 367,840 - 1,492 369,332
W 8,508,993 - 2,911,306 (17) 2,456 2,913,745
(*1) Other represents the adjustments of fair value when acquired.
(*2) The adjustments for others are the unrecognized equity method for preferred stocks without voting rights issued
by the invested company.
201
(e) The unrecognized equity method losses as of and for the years ended December 31, 2022 and 2021 are as follows:
December 31, 2022

Unrecognized equity Cumulative unrecognized
Investees method losses equity method losses
MSTEEL co.Ltd. W (371) (371)
MIEL CO.,LTD. - (41)
Shinhan Global Healthcare Fund 1 (61) (214)
EDNCENTRAL Co.,Ltd. (504) (998)
W (1,018) (1,720)
December 31, 2021

Unrecognized equity Cumulative unrecognized
Investees method losses equity method losses
Songrim Partners W - (22)
MIEL CO.,LTD. (16) (41)
Goduck Gangil1 PFV Co., Ltd. (19) (164)
Goduck Gangil10 PFV Co., Ltd. (1,664) (1,664)
EDNCENTRAL Co.,Ltd. (494) (494)
W (2,360) (2,552)
202
16. Investment properties
(a) Investment properties as of December 31, 2022 and 2021 are as follows:

Acquisition cost W 513,986 852,458
Accumulated depreciation (150,878) (177,067)
Carrying value W 363,108 675,391
(b) Changes in investment properties for the years ended December 31, 2022 and 2021 are as follows:

Beginning balance W 675,391 615,235
Acquisition 10,090 8,292
Disposal (230,148) (2,279)
Depreciation (18,115) (21,616)
Amounts transferred from (to) property and equipment 9,554 73,773
Amounts transferred from(to) assets held for sale(*) (83,664) 2,238
Foreign currency adjustment - (252)
Ending balance W 363,108 675,391
(*) Comprise buildings and land, etc.
(c) Income and expenses on investment property for the years ended December 31, 2022 and 2021 are as follows:

Rental income W 33,366 35,887
Direct operating expenses for investment properties that generated rental
income 16,980 12,033
(d) The fair value of investment property as of December 31, 2022 and 2021 is as follows:

Land and buildings(*) W 1,063,031 1,374,389
(*) Fair value of investment properties is estimated based in the recent market transaction conditions with an
independent third party and certain significant unobservable inputs. Accordingly, fair value of investment properties
is classified as level 3.
203
17. Other assets
(a) Other assets as of December 31, 2022 and 2021 are as follows:

Accounts receivable W 11,594,139 12,754,436
Domestic exchange settlement debit 6,034,816 6,700,373
Guarantee deposits 1,016,748 1,077,644
Accrued income 3,254,404 2,655,894
Prepaid expense 784,630 491,950
Provisional payments 378,993 295,149
Sundry assets 96,190 88,797
Separate account assets 8,086,147 9,501,135
Advance payments 288,466 207,128
Unamortized deferred acquisition cost 949,322 954,949
Leased assets 1,932,791 1,395,334
Others 505,230 125,815
Discounted present value (51,864) (30,614)
Allowances for credit loss of other assets (362,174) (244,236)
W 34,507,838 35,973,754
(b) Changes in unamortized deferred acquisition cost by insurance type for the years ended December 31, 2022 and
December 31, 2022

Acquisition cost incurred Business
Beginning combination Amortiza Ending
balance Cost Expensed Deferral (Note 47) -tion balance
Individual insurance
Pure endowment
insurance W 22,742 10,216 (4,569) 5,647 - (12,491) 15,898
Death insurance 916,043 636,753 (247,827) 388,926 - (385,664) 919,305
Endowment insurance 15,769 15,139 (11,168) 3,971 - (5,974) 13,766
954,554 662,108 (263,564) 398,544 - (404,129) 948,969
Group insurance
Pure protection 395 136 (20) 116 - (168) 343
General insurance
Long-term - - - - 13 (3) 10
W 954,949 662,244 (263,584) 398,660 13 (404,300) 949,322
December 31, 2021

Beginning Acquisition cost incurred Amortiza Ending
balance Cost Expensed Deferral -tion balance
Individual insurance
Pure endowment insurance W 37,504 12,386 (3,680) 8,706 (23,468) 22,742
Death insurance 932,922 655,210 (278,147) 377,063 (393,942) 916,043
Endowment insurance 8,925 19,703 (8,382) 11,321 (4,477) 15,769
979,351 687,299 (290,209) 397,090 (421,887) 954,554
Group insurance
Pure protection 591 170 (64) 106 (302) 395
W 979,942 687,469 (290,273) 397,196 (422,189) 954,949
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18. Leases
(a) Gross investment and present value of minimum lease payment of finance lease as of December 31, 2022 and
December 31, 2022

Unrealized interest Present value of minimum
Gross investment income lease payment
Not later than 1 year W 654,159 82,286 571,873
1 ~ 2 years 477,216 55,860 421,356
2 ~ 3 years 379,998 36,353 343,645
3 ~ 4 years 312,014 20,816 291,198
4 ~ 5 years 250,568 7,415 243,153
Later than 5 years 1,682 4 1,678
W 2,075,637 202,734 1,872,903
(*) Interest income on finance lease receivables recognized for the year ended December 31, 2022 is W64,679 million.
December 31, 2021

Unrealized interest Present value of minimum
Gross investment income lease payment
1 ~ 2 years 470,800 39,631 431,169
2 ~ 3 years 308,999 18,738 290,261
3 ~ 4 years 191,257 6,606 184,651
4 ~ 5 years 113,638 4,417 109,221
W 1,725,690 134,773 1,590,917
(*) Interest income on finance lease receivables recognized for the year ended December 31, 2021 is W60,475 million.
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18. Leases (continued)
(b) Minimum lease payment receivable schedule for lease contracts of the Group as lessor as of December 31, 2022
i) Finance lease
December 31, 2022

Minimum lease Present value Present value of minimum
payment adjustment lease payment
1 ~ 2 years 477,216 55,860 421,356
2 ~ 3 years 379,998 36,353 343,645
3 ~ 4 years 312,014 20,816 291,198
4 ~ 5 years 250,568 7,415 243,153
W 2,075,637 202,734 1,872,903
December 31, 2021

Minimum lease Present value Present value of minimum
payment adjustment lease payment
1 ~ 2 years 470,800 39,631 431,169
2 ~ 3 years 308,999 18,738 290,261
3 ~ 4 years 191,257 6,606 184,651
4 ~ 5 years 113,638 4,417 109,221
W 1,725,690 134,773 1,590,917
ii) Operating lease
Minimum lease payment

Not later than 1 year W 513,245 371,521
1 ~ 2 years 439,678 320,603
2 ~ 3 years 322,125 251,720
3 ~ 4 years 189,375 147,134
4 ~ 5 years 72,000 53,879
Later than 5 years 6,997 94,143
W 1,543,420 1,239,000
(c) Changes in operating lease assets for the years ended December 31, 2022 and 2021 are as follows:

Acquisition 1,017,137 691,192
Disposal (128,950) (54,721)
Depreciation (351,208) (257,033)
Amounts transferred from(to) property and equipment (214) -
Ending balance W 1,930,503 1,393,738
206
(d) The details of the right-of-use assets by the lessee’s underlying asset type as of December 31, 2022 and 2021 are
as follows:
December 31, 2022

Accumulated
Acquisition cost depreciation Carrying value
Real estate W 1,124,151 (538,076) 586,075
Vehicle 51,644 (29,317) 22,327
Others 32,933 (22,125) 10,808
W 1,208,728 (589,518) 619,210
December 31, 2021

Accumulated
Acquisition cost depreciation Carrying value
Real estate W 1,153,021 (578,980) 574,041
Vehicle 45,670 (23,821) 21,849
Others 30,478 (18,241) 12,237
W 1,229,169 (621,042) 608,127
(e) The details of the changes in the right-of-use assets for the years ended December 31, 2022 and 2021 are as
follows:
December 31, 2022

Real estate Vehicle Others Total
Acquisition 350,328 14,834 3,991 369,153
Disposal (72,323) (2,404) (836) (75,563)
Depreciation(*) (271,299) (12,004) (4,583) (287,886)
movements 4,277 52 (1) 4,328
Business combination (Note 47) 1,051 - - 1,051
Ending balance W 586,075 22,327 10,808 619,210
December 31, 2021

Real estate Vehicle Others Total
Acquisition 295,228 17,524 4,173 316,925
Disposal (22,829) (4,070) (31) (26,930)
Depreciation(*) (271,895) (12,408) (5,282) (289,585)
movements 17,118 182 - 17,300
Ending balance W 574,041 21,849 12,237 608,127
(*) Included in general administrative expense and other operating income(expense) of the consolidated statements
207
(f) The details of the maturity of the lease liability as of December 31, 2022 and 2021 are as follows:
December 31, 2022

1 month ~ 3 months ~ 6 months ~ 1 year ~
1 month 3 months 6 months 1 year 5 years More than
or less or less or less or less or less 5 years Total
Real estate W 26,601 34,980 48,209 84,706 315,267 74,190 583,953
Vehicle 4,999 1,851 2,543 4,566 13,910 92 27,961
Others 463 588 1,151 2,219 6,994 10 11,425
W 32,063 37,419 51,903 91,491 336,171 74,292 623,339
December 31, 2021

1 month ~ 3 months ~ 6 months ~ 1 year ~
1 month 3 months 6 months 1 year 5 years More than
or less or less or less or less or less 5 years Total
Real estate W 22,890 33,950 46,532 82,467 266,299 121,360 573,498
Vehicle 4,496 1,935 2,536 4,718 12,298 513 26,496
Others 465 650 1,124 2,205 8,226 26 12,696
W 27,851 36,535 50,192 89,390 286,823 121,899 612,690
(*) The above amounts are based on undiscounted cash flows, and have been classified at the earliest maturity that
the Group has the obligation to pay.
(g) The lease payments for low-value assets and short-term leases for the years ended December 31, 2022 and 2021
are as follows:

Low-value assets W 6,888 5,885
Short-term lease(*) 268 766
Total W 7,156 6,651
(*) The payments for leases with terms less than 1 month are included.
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19. Pledged assets
(a) Assets pledged as collateral as of December 31, 2022 and 2021 are as follows:
December 31, 2022 December 31, 2021 Reasons for collateral
Securities:
Securities at FVTPL W 12,627,388 14,944,525 Customer RP, etc.
Borrowings, Settlement
Securities at FVOCI security for Bank of Korea,
9,282,016 3,244,232 Borrowing securities, etc.
Borrowings, Settlement
Securities at amortized cost security for Bank of Korea,
15,004,325 16,284,795 Customer RP, etc.
36,913,729 34,473,552
Deposits at amortized cost 1,883,755 958,206 Borrowings, etc.

Property and Equipment Establishing the right to
(real estate) 29,288 300,352 collateral security, etc.
W 38,826,772 35,732,110
(*) The carrying values of assets pledged that the pledgees have the right to sell or re-pledge regardless of the Group’s
default as of December 31, 2022 and 2021 are W9,754,980 million and W11,017,362 million, respectively.
(b) The fair value of collateral held that the Group has the right to sell or re-pledge regardless of the pledger’s default
as of December 31, 2022 and 2021 are as follows:

The fair value of The fair value of
collateral sold or collateral sold or
Assets received as re-provided as Assets received re-provided as
collateral collateral as collateral collateral
Securities W 3,750,199 - 2,163,744 -
209
20. Deposits
Deposits as of December 31, 2022 and 2021 are as follows:

Demand deposits:
Korean won W 132,604,867 151,787,483
Foreign currencies 24,841,409 20,320,241
157,446,276 172,107,724
Time deposits:
Korean won 171,355,724 140,651,250
Foreign currencies 24,910,187 20,847,651
196,265,911 161,498,901
Certificates of deposits 14,921,375 16,576,536
Discount note deposits 6,631,858 5,818,001
CMA 4,634,010 5,246,478
Others 3,111,315 3,649,035
W 383,010,745 364,896,675
210
21. Financial liabilities at fair value through profit or loss
Financial liabilities at fair value through profit or loss as of December 31, 2022 and 2021 are as follows:

Securities sold:
Stocks W 278,341 275,451
Bonds 438,689 505,202
Others 7,074 7,114
724,104 787,767
Gold/silver deposits 422,006 581,458
W 1,146,110 1,369,225
22. Financial liabilities designated at fair value through profit or loss
(a) Financial liabilities designated at fair value through profit or loss as of December 31, 2022 and 2021 are as follows:
December 31, 2022 December 31, 2021 Reason for designation

Equity-linked securities sold W 5,437,434 5,795,071 Compound financial
Securities sold with embedded derivatives 2,882,607 2,228,799 instrument
Fair value measurement
Debt securities issued
47,327 - and management
W 8,367,368 8,023,870
(*) The Group designated the financial liabilities at the initial recognition(or subsequently) in accordance with
paragraph 6.7.1 of K-IFRS No. 1109 as financial liabilities at fair value through profit or loss.
Maximum credit risk exposure of the financial liabilities designated at fair value through profit or loss amounts to
W 8,367,368 million as of December 31, 2022. Decrease in values of the liability due to credit risk changes is W
5,919 million for the year ended December 31, 2022 and the accumulated changes in values are W(-)7,014 million
as of December 31, 2022.
(b) The difference between the carrying value of financial liabilities designated at fair value through profit or loss
and the amount required to be paid at contractual maturity as of December 31, 2022 and 2021 are as follows:
Expiration payment W 7,733,506 7,325,678

Carrying value 8,367,368 8,023,870
Difference from carrying value W (633,862) (698,192)
211
23. Borrowings
Borrowings as of December 31, 2022 and 2021 are as follows:

Interest Interest
rate (%) Amount rate (%) Amount
Borrowings denominated in Korean won:
Borrowings from Bank of Korea 0.25~1.75 W 5,100,325 0.25~0.25 W 5,278,331
Others 0.00~7.60 23,091,971 0.00~3.93 18,412,343
28,192,296 23,690,674
Borrowings denominated in foreign currencies:
Overdraft due from banks 0.00~0.30 48,072 0.00~0.30 42,434
Borrowings from banks 0.15~21.20 7,811,701 (0.49)~12.29 5,292,872
Others 0.00~22.65 2,397,605 0.00~11.25 1,890,291
10,257,378 7,225,597
Call money 0.05~6.30 1,276,301 (0.30)~1.52 1,534,611

Bill of sale 0.00~3.95 15,057 0.00~1.47 9,032
Bonds sold under repurchase agreements 0.00~6.80 9,544,536 0.00~6.25 10,709,115
Deferred origination costs (6,393) (1,964)
W 49,279,175 W 43,167,065
212
24. Debt securities issued
Debt securities issued as of December 31, 2022 and 2021 are as follows:

Interest Interest
rate (%) Amount rate (%) Amount
Debt securities issued in Korean won:
Debt securities issued 0.05~9.00 W 61,038,481 0.79~8.00 W 64,419,771
Subordinated debt securities issued 2.20~4.17 3,275,225 2.20~4.60 5,030,125
Gain on fair value hedges - (348,700) - (122,069)
Discount on debt securities issued - (37,943) - (38,845)
63,927,063 69,288,982
Debt securities issued in foreign
currencies:
Debt securities issued 0.25~7.59 9,586,831 0.25~7.59 7,462,087
Subordinated debt securities issued 3.34~5.10 4,145,264 3.34~5.10 3,307,306
Loss(Gain) on fair value hedges - (324,901) - 130,392
Discount on debt securities issued - (45,474) - (39,404)
13,361,720 10,860,381
W 77,288,783 W 80,149,363
25. Defined benefit plans
(a) Defined benefit plan assets and obligations
The Group has operated a defined benefit plan and calculates defined benefit obligations based on the employee's
pension compensation benefits and service period.
Defined benefit obligations and plan assets as of December 31, 2022 and 2021 are as follows:

Present value of defined benefit obligations W 1,934,643 2,205,869
Fair value of plan assets (2,539,632) (2,296,685)
Recognized liability(asset) for defined benefit obligations(*) W (604,989) (90,816)
(*) The asset for defined benefit obligation of W604,989 million as of December 31, 2022 is the net defined benefit
assets of W619,653 million less the net defined liabilities of W14,664 million. In addition, the liability for defined
benefit obligation of W90,816 million as of December 31, 2021 is the net defined benefit liabilities of W142,020
million less the net defined assets of W51,204 million.
213
25. Defined benefit plans (continued)
(b) Changes in the present value of defined benefit obligation and plan assets for the years ended December 31,
December 31, 2022

Net defined
Defined benefit benefit
obligation Plan assets liability(asset)
Beginning balance W 2,205,869 (2,296,685) (90,816)
Included in profit or loss:
Current service cost 170,772 - 170,772
Past service cost 8,330 - 8,330
Interest expense (income) 72,307 (78,823) (6,516)
Settlement gain or loss (466) - (466)
250,943 (78,823) 172,120
Included in other comprehensive income:
Remeasurement loss (gain):
- Actuarial losses (gains) arising from:
Demographic assumptions (938) - (938)
Financial assumptions (419,764) - (419,764)
Experience adjustment 35,758 - 35,758
- Return on plan assets excluding interest
income - 36,725 36,725
(384,944) 36,725 (348,219)
Other:
Benefits paid by the plan (138,290) 145,130 6,840
Contributions paid into the plan - (345,979) (345,979)
Changes in the scope of consolidation 1,507 - 1,507
Effect of changes in foreign exchange rates (442) - (442)
(137,225) (200,849) (338,074)
Ending balance W 1,934,643 (2,539,632) (604,989)
(*) Profit and loss related to defined benefit plans are all included in the general administrative expense.
214
(b) Changes in the present value of defined benefit obligation and plan assets for the years ended December 31,
2022 and 2021 are as follows (continued):
December 31, 2021

Net defined
Defined benefit benefit
obligation Plan assets liability(asset)
Beginning balance W 2,182,464 (2,138,324) 44,140
Included in profit or loss:
Current service cost 179,751 - 179,751
Past service cost 2,570 - 2,570
Interest expense (income) 64,729 (64,759) (30)
Settlement gain or loss (4,844) - (4,844)
242,206 (64,759) 177,447
Included in other comprehensive income:
Remeasurement loss (gain):
- Actuarial losses (gains) arising from :
Demographic assumptions (1,642) - (1,642)
Financial assumptions (87,406) - (87,406)
Experience adjustment (5,450) - (5,450)
- Return on plan assets excluding interest
income - 35,141 35,141
(94,498) 35,141 (59,357)
Other:
Benefits paid by the plan (122,358) 120,347 (2,011)
Contributions paid into the plan (10) (249,099) (249,109)
Settlement gain or loss (2,231) 9 (2,222)
Effect of changes in foreign exchange rates 296 - 296
(124,303) (128,743) (253,046)
Ending balance W 2,205,869 (2,296,685) (90,816)
(*) Profit and loss related to defined benefit plans are all included in the general administrative expense.
215
(c) The composition of plan assets as of December 31, 2022 and 2021 are as follows:

Plan assets comprise:
Debt securities W 31,140 43,607
Due from banks 2,220,218 1,915,361
Others 288,274 337,717
W 2,539,632 2,296,685
(d) Actuarial assumptions as of December 31, 2022 and 2021 are as follows:
December 31, 2022 December 31, 2021 Description

Discount rate 5.05%~5.93% 3.19%~3.77% AA0 corporate bond yields
2.00%~7.00% 1.98%~5.00%
Future salary increase rate Average for 5 years
+ Upgrade rate + Upgrade rate
6.7 years~ 7.4 years~
Weighted average maturity
10.9 years 14.8 years
(e) Sensitivity analysis
As of December 31, 2022 and 2021, reasonably possible changes in one of the relevant actuarial assumptions, holding
other assumptions constant, would have affected the defined benefit obligation by the amounts shown below.
December 31, 2022

Defined benefit obligation
Increase Decrease
Discount rate (1%p movement) W (154,651) 168,565
Future salary increase rate (1%p movement) 172,716 (160,649)
December 31, 2021

Defined benefit obligation
Increase Decrease
Discount rate (1%p movement) W (197,174) 216,226
Future salary increase rate (1%p movement) 216,450 (200,843)
(f) The Group's estimated contribution is W145,699 million as of December 31, 2023.
26. Provisions
(a) Provisions as of December 31, 2022 and 2021 are as follows:

Asset retirement obligations W 91,571 82,123
Expected loss related to litigation 29,238 9,693
Unused credit commitments 317,590 300,008
Guarantee contracts issued 83,411 81,922
Financial guarantee contracts issued 55,828 55,344
Non-financial guarantee contracts issued 27,583 26,578
Others(*) 744,504 693,110
W 1,266,314 1,166,856
(*) As of December 31, 2022 and 2021, the Group recognizes a provision of W 574,013 million and W 518,955 million,
respectively, an estimated amount which is highly probable to be paid for customer losses expected due to delays in
redemption of Lime CI funds, etc.
216
26. Provisions (continued)
(b) Changes in provision for unused credit commitments and financial guarantee contracts issued for the years ended December 31, 2022 and 2021 are as follows:
December 31, 2022

Unused credit commitments Financial guarantee contracts issued
12 months expected Life time expected Impaired 12 months expected Life time expected Impaired financial
credit loss credit loss financial asset credit loss credit loss asset Total
Beginning balance W 150,573 147,511 1,924 48,607 6,709 28 355,352

Transfer (from)to 12 months
expected credit loss 68,226 (67,945) (281) 2,680 (2,680) - -
expected credit loss (10,794) 10,842 (48) (3,715) 3,715 - -
Transfer (from)to impaired
financial asset (316) (1,274) 1,590 - - - -
Provided (reversed) (30,016) 50,733 (1,155) (972) 537 5 19,132
Change in foreign exchange
rate (2,068) 131 - 910 118 - (909)
OtOthers(*) (43) - - 603 (712) (5) (157)
Ending balance W 175,562 139,998 2,030 48,113 7,687 28 373,418
(*) Others include effects of the provision from the new financial guarantee contracts measured at fair value, and the expired contracts, the change of discount rate and others.
217
(b) Changes in provision for unused credit commitments and financial guarantee contracts issued for the years ended December 31, 2022 and 2021 are as follows (continued):
December 31, 2021

Unused credit commitments Financial guarantee contracts issued
12 months expected Life time expected Impaired 12 months expected Life time expected Impaired financial
credit loss credit loss financial asset credit loss credit loss asset Total
Beginning balance W 164,147 140,137 1,435 54,550 7,335 10 367,614

Transfer (from)to 12 months
expected credit loss 63,335 (63,249) (86) 2,931 (2,931) - -
expected credit loss (11,889) 11,917 (28) (3,621) 3,621 - -
Transfer (from)to impaired
financial asset (274) (939) 1,213 - - - -
Provided (reversed) (66,373) 58,188 (610) (581) (178) 5 (9,549)
Change in foreign exchange
rate 1,964 1,077 - 1,910 534 - 5,485
OtOthers (*) (337) 380 - (6,582) (1,672) 13 (8,198)
Ending balance W 150,573 147,511 1,924 48,607 6,709 28 355,352
(*) Others include effects of the provision from the new financial guarantee contracts measured at fair value, and the expired contracts, the change of discount rate and others.
218
(c) Changes in provisions for the years ended December 31, 2022 and 2021 are as follows:
December 31, 2022

Asset
retirement Litigation Guarantee Others Total
Beginning balance W 82,123 9,693 26,578 693,110 811,504
Provision(reversal) 27,474 20,733 (410) 127,460 175,257
Provision used (25,228) (779) - (75,355) (101,362)
Change in foreign
exchange rate 4 - 1,352 315 1,671
Others(*) 7,090 (409) 63 (1,026) 5,718
(Note 47) 108 - - - 108
Ending balance W 91,571 29,238 27,583 744,504 892,896
(*) Others include increase in provisions based on the present value, the effect of changes in discount rate over the
period and others.
December 31, 2021

Asset
retirement Litigation Guarantee Other Total
Beginning balance W 65,659 12,468 21,956 337,039 437,122
Provision(reversal) 8,185 2,552 3,457 350,090 364,284
Provision used (3,793) (5,327) - (37,604) (46,724)
Change in foreign
exchange rate 4 - 1,265 (1,314) (45)
Others(*) 12,068 - (100) 44,899 56,867
Ending balance W 82,123 9,693 26,578 693,110 811,504
(*) Others include increase in provisions based on the present value, the effect of changes in discount rate over the
period and others.
(d) Asset retirement obligation liabilities represent the estimated cost to restore the existing leased properties which
is discounted to the present value using the appropriate discount rate at the end of the reporting period. Disbursements
of such costs are expected to incur at the end of lease contract. Such costs are reasonably estimated using the average
lease year and the average restoration expenses. The average lease year is calculated based on the past ten-year
historical data of the expired leases. The average restoration expense is calculated based on the actual costs incurred
for the past three years using the three-year average inflation rate.
(e) Allowance for guarantees and acceptances as of December 31, 2022 and 2021 are as follows:

Outstanding guarantees and acceptances W 12,154,088 10,540,968
Contingent guarantees and acceptances 4,565,829 4,670,771
ABS and ABCP purchase commitments 1,496,604 1,525,768
Endorsed bill 10,025 8,199
W 18,226,546 16,745,706
Allowance for loss on guarantees and acceptances W 83,411 81,922
Ratio % 0.46 0.49
219
27. Liability under insurance contracts
(a) Overview of the insurance risk – Shinhan Life Insurance Co., Ltd.
i) Overview of the insurance risk
i-1) Insurance risk and reinsurance
Insurance risk is the likelihood of an insurance event occurring and the uncertainty as to the total amount and timing
of benefits paid as a result of the event. The main risk covered by insurance contracts is the risk that the actual claim
or benefit payment will exceed the accumulated liability. This risk can occur for the following reasons:
① Frequency risk: Possibility that the number of occurrences of the insurance event is different from the expected
number
② Severity risk: The cost of an incident may be different from the expected cost level
Experience shows that more or more similar insurance contracts are less likely to have an unusual effect from some
contracts, and the Group forms a sufficiently diversified group of contracts in consideration of this when acquiring
the contracts.
Insurance risk includes a lack of risk diversification and relates to geographical location and the nature of the
policyholder as well as to the diversification of risk forms or sizes.
If the insurance contract covers death, the catastrophe affects the frequency the most and can affect the frequency of
death earlier than expected due to a wide range of causes such as eating habits, smoking, and exercise habits. And if
the coverage is survival, medical technology and social conditions can increase the survival rate. The frequency may
also be affected by excessive concentration in the coverage area.
Insurance accidents in life insurance include not only the death of the insured (insured) but also survival, disability
and hospitalization.
The Group basically classifies the Group's insurance products into individual insurance and group insurance according
to the policyholder. Group insurance means a contract under which the insured belongs to a group of a certain size or
larger and in which the policyholder is the representative of the Group or organization. The group insurance can be
divided into savings and protections. Protection insurance means insurance in which the sum of benefits paid for
survival at the base age does not exceed the premium already paid; savings insurance is defined as insurance, except
for protection insurance, in which the sum of benefits paid for survival exceeds the premium already paid. Individual
insurance can be classified into death insurance in which the insured's death is insured, survival insurance in which
the life is insured for a certain period of time, and endowment insurance.
Life insurance products can also be divided into guaranteed fixed rates, floating rates, interest-sensitive, and variable
types.
In the guaranteed fixed interest type, since the expected rate does not change from the time the policyholder enters
into the contract to the end of the insurance period, the Group assumes the interest rate risk if the asset management
yield or market interest rate is lower than the expected rate. Floating interest rate type divides the net insurance
premium into the guaranteed portion and the reserve portion, so that the guaranteed portion is applied with the
predetermined expected rate, and the reserve portion changes the reserve rate of policy reserve according to asset
management yield, and some hedging on interest rate risk is feasible.
The Group uses acquisition strategies and reinsurance strategies to manage the uncertainty of the total amount and
timing of insurance claims paid out as a result of an insured event.
220
27. Liability under insurance contracts (continued)
(a) Overview of the insurance risk – Shinhan Life Insurance Co., Ltd. (continued)
i) Overview of the insurance risk (continued)
i-1) Insurance risk and reinsurance (continued)
① Acquisition strategy
Acquisition strategy means diversifying the type of risk or the level of benefits that are acquired. For example, a
company can balance mortality and survival risks. In addition, the selection of policyholders through regular check-
ups is one of the major acquisition strategies.
② Reinsurance strategy
The risk to be ceded by the Group is based on the acquired insurance contract, which can be the total amount of risk
or risk per contract on a per capita basis or per contract basis. In principle, the reinsurance method provides the risk
premium excess reinsurance, but other methods may be used within the scope of the relevant laws as required. The
degree of reinsurance held by the Group shall be determined by considering the Group's assets, contract conditions,
risk level, and technology for selecting the contract.
Insurance risk can also be affected by the policyholder's right to terminate the contract or exercise annuity conversion
rights to reduce or not pay the full premium. As a result, insurance risks may be affected by the policyholder's actions
and decisions. The Group's insurance risk can be estimated on the assumption that the policyholder is reasonable. For
example, a person who is worse than a person in good health would have less intention of terminating insurance that
guarantees death. These factors are also reflected in the assumptions about the Group's insurance liability.
i-2) Discretionary participation features
The discretionary participation feature is a contractual right to receive additional benefits which have the following
characteristics in addition to the unconditional rights of the policyholder or investor, which fulfils all three
requirements below. Insurance premiums for investment contracts without discretionary participation feature are
recognized as deposits, and premiums for investment contracts with discretionary participation feature are recognized
as profit or loss.
① It constitutes a significant portion of the total payments in the contract.

② The amount or timing is determined at the discretion of the issuer under the contract.
③ The contract is based on one or more of the following:
- The performance arising from specific contract groups or specific contract types;
- Realized or unrealized return on investment arising from the specific asset group held by the issuer; or
- Profit or loss of the entity, fund or other entity that issued the contract;
The Group’s participating contract meets all three of the above requirements and includes a discretionary participation
feature.
If the actual base rate matches with the expected base rate assumed upon calculation of the insurance premium of the
Group, income and expenses are balanced over the insurance period, that the premiums do not fall short. In practice,
however, the expected risk, expected interest rate, and projected expense ratio applied when calculating premiums
will differ from the actual rate where the interest rate or expense ratio changes due to changes in risk rate or economic
situation. These differences constitute the Group's profit or losses and, depending on the source, these may consist of
mortality risk, interest rate, interest rate risk, and expense rate.
221
i-2) Discretionary participation features (continued)
Compared to contracts without discretionary participation feature, in contracts with discretionary participation, the
sources of profit or loss below are shared between the policyholders and the Group, thereby reducing the risk.
① Gain or losses on mortality risk
It is caused by the difference between the expected risk rate and the actual risk rate. In case of death insurance, if the
actual mortality rate is lower than the expected mortality rate, there is a risk difference gain, and vice versa.
② Gain or losses on interest rate risk
It is caused by the difference between the expected interest rate and the actual interest rate. If the actual asset
management return is higher than the expected interest rate, interest rate difference is generated, and vice versa.
③ Gain or losses on expense rate risk
It is caused by the difference between the business expense and the actual expense. If the actual expense is lower
than the business expense, the difference in expense is incurred, and vice versa.
As described above, if the expected base rate used by the Group to calculate the premium is different from the actual,
the profits generated from the settlement must be refunded to the policyholder because the profits generated are taken
in the calculation of premiums, and the dividend paid to the policyholder is distinguished from the dividend paid to
shareholders.
The Group first accumulates policy reserves at the end of each reporting period, and then divides the remainder into
gain or losses from participating and non-participating insurance contracts and gain or losses on management of the
capital account. Gain or losses from non-participating insurance and management of the capital account are treated
as the shareholder’s interest, shareholder’s interest for the gain or losses on participating insurance is less than 10th
of 100th, and the remaining portion shall be treated as the policyholder’s interest. Policyholder's shares may not be
used or accumulated for purpose other than the financial resources for policyholder dividends and the purpose of
accumulating excess participating policyholder dividend reserve.
Policyholder dividends represent amounts payable to policyholders due to interest rate difference, long-term duration,
mortality rate difference, and expense rate difference, and the reserve for policyholder dividends is divided into
policyholder dividend reserve and excess participating policyholder dividend reserve. Excess participating
policyholder dividend reserve is the amount to be accumulated in the total amount to be used for future policyholder
dividends if there is surplus after accumulating the reserve for loss from participating insurance and the policyholder
dividend reserve from the policyholders’ interest of participating interest in the year.
The policyholder dividend reserve is a defined dividend reserve that determines the amount to be paid for each
policyholder, whereas the amount of excess participating policyholder dividend reserve is not confirmed for each
policyholder. The Group should first use the excess participating policyholder dividend reserve accumulated in gross
amount prior to the year and the excess participating policyholder dividend reserve accumulated should be used as
the policyholder dividend within 5 years from the end of the year.
222
i-2) Discretionary participation features (continued)
Reserve for loss from participating insurance is the amount that is accumulated for the purpose of preserving the loss
of participating insurance according to laws and regulations. Prior to accumulate the policyholder dividend reserve,
the dividend reserves of the retained dividends take precedence over the policyholder dividend reserve and the excess
participating policyholder dividend reserve.
Reserve for loss from participating insurance is accumulated within 30th of the policyholder’s interests, preferentially
compensates for losses incurred in participating insurance within 5 years of accumulation, and the remaining amount
after compensation is used for the dividends of the policyholder.
ii) Insurance risk management policy
Unlike other financial instruments, life insurance companies' insurance policies have the characteristics of long-term
contracts, which can be exposed to insurance risk that may arise due to an increase in actual claim payments than the
risk rate determined at the time of development of the product and interest rate risk that may arise due to differences
in interest rates and maturities between insurance liabilities and asset management.
The purpose of the Group’s risk management is to generate long-term stable growth and profits by proactively
preventing and systematically managing the various risks that may arise in the course of management activities,
reflecting these uncertain financial environments and the characteristics of life insurance products with long-term
attributes.
To achieve this risk management policy, the Group's risk management strategy measures the risk-based capital stock
(RBC) required capital and manages it within acceptable limits. To this end, the Group has established the basic
principles of risk management and established and implemented regulations and management systems to implement
them. In addition, through the Risk Management Committee and Risk Management Organization, various risk-related
decision-making is supported, and risk management procedures are in place to identify and manage risks in a timely
manner.
In general, risk management procedures are to recognize exposed risks, measure their size, set acceptable limits,
monitor them regularly to report to management, and efficiently control and manage risks in case they exceed their
limits.
Management methods by risk type are as follows:
① Insurance risk management: From the time of product development, by setting profitability guidelines, products
are developed to ensure proper profitability, and appropriate acceptance criteria are set and operated to prevent reverse
selection, and claim payments can be made fairly.
② Interest rate risk management: Establish a guideline and consider the market interest rate and asset management
profit rate to determine the published interest rate and expected interest rate within the guidelines. In addition, the
asset management strategy is set considering the interest rate level and maturity of liabilities, after analyzing the
attributes of long-term insurance liabilities, the long-term target portfolio is established, and the annual portfolio can
be guided by comprehensively considering the risk level and return of the managed asset.
③ Liquidity risk management: Inspect and manage the amount of paid insurance and liquid assets on a daily basis.
223
iii) Standard policy reserve system
The policy reserve is a liability to the policyholder and the faithfulness of the reserve on the basis of the profit or loss
account is directly linked to the maintenance of the Group’s management integrity and the protection of the
policyholder's interests, so it is subject to strict regulatory regulations. Accordingly, the supervisory authorities apply
the standard policy reserve system in relation to the method of setting up and calculating the respective policy reserves.
The current method of using the reserve base rate equal to the insurance premium calculation base rate can threaten
the financial health of the Group by causing insolvency of the reserve fund in case of liberalization of insurance prices,
so the standard policy reserve system is introduced to use objective and conservative basic rates to prevent insolvency
of the financial structure that can result from liberalization of insurance premium prices and protect the rights and
interests of policyholders.
In other words, the standard policy reserve is an institutional device that dualizes the contract base rate by setting the
risk or interest rate applied to calculating the policy reserve in a more conservative manner than the risk or interest
rate applied to calculating the insurance premium. In order for the insurance company to calculate the policy reserve,
the future expected basic rate, such as the expected interest rate and the expected risk rate, is necessary, and the policy
reserve is the estimated amount of the debt estimated by the expected basic rate. Since the real intention of
liberalization is not to leave such a policy reserve entirely to the discretion of the insurer after price liberalization, the
government needed an objective and certain level of reserve accumulation system to strengthen the financial stability
of insurance companies and protection of policyholders, and prevent insurers' insolvency due to price competition
such as insurance premium dumping after price liberalization.
According to the Regulation on Supervision of Insurance Business, premium reserves are calculated by applying the
standard rate and standard risk rate set by the supervisor authority. In this case, the standard rate is to apply the standard
rate of the year in which the insurance contract was signed over the entire insurance period. However, the highest
interest rate among the interest rates specified in the insurance premium and policy reserve calculation method for the
floating interest rate product is applied. As a result, when the premium reserve calculated at the base rate applied when
calculating the premium differs from the premium reserve calculated at the standard interest rate and the standard risk
rate, a large amount is required to be accumulated as the premium reserve so that more than a certain minimum reserve
is accumulated, hence the system tends to protect policyholders by enhancing reserves.
The current reserve for liability is calculated using the evaluation method for the year of issuance. In other words,
the basic rate of evaluation of the reserve for liability is applied in the same way as the interest rate and risk rate
applied at the time the insurance contract was established until the end of the contract. This method is suitable for a
stable situation in which the financial environment at the time of sale of the insurance product and the financial
environment during the insurance period are almost unchanged, however, in the event of fluctuations such as
market interest rates and the expected risk rate at the time of sale of a contract, it is not possible to react flexibly.
Therefore, there is a possibility that the policy reserve may not properly reflect the fair value of the contract. A
liability adequacy test system was introduced to compensate for the shortcomings that could not reflect such
market changes.
224
iv) Financial risks related to insurance contracts
iv-1) Form of exposure by each type of risk
Investment contracts that include insurance contracts and discretionary participation feature may be exposed to
financial risks although it is an insurance liability, and the form of exposure is as follows:
① Credit risk
Credit risk refers to the risk of loss resulting from the borrower's failure to repay a loan or meet contractual obligations.
The Group's reinsurance assets and reinsurance receivables are exposed to credit risk as assets that may incur losses
if the reinsurer defaults at the time of receipt of the claims and receivables.
② Interest rate risk
Interest rate risk means the risk that arises when the Group's financial position fluctuates unfavorably due to the effect
of interest rates on assets and liabilities.
③ Liquidity risk
Liquidity risk refers to the risk that assets and liabilities are subject to inconsistency or failure to respond to unexpected
cash outflows. Therefore, future cash outflows from investment contracts, including insurance liabilities which
account for most of the Company's liabilities and dividend components, are factors used to determine the level of risk
associated with the Group's liquidity.
④ Market risk
Market risk refers to the risk of loss arising when the Group's financial position fluctuates unfavourably due to
adverse price fluctuations such as stock prices and exchange rates. There is no impact on profit or loss or capital
due to changes in each liability amount, since fluctuations in stock prices and exchange rates, the prices of
investment contracts, including insurance liabilities which account for most of the Group's liabilities and dividend
components, do not fluctuate.
iv-2) The degree to which the discretionary participation feature mitigates or aggravates risk
A relatively high premium is received by setting and producing a relatively conservative base rate compared to a
contract without discretionary participation features, and a relatively high premium is later refunded to the contractor
through a policyholder dividend for the premium payment based on conservative calculation of the expected base rate.
However, contracts without a discretionary participation feature will set the expected optimal base rate, which is not
conservative, and receive a relatively low premium when establishing the initial expected base rate. Thereafter, if the
expected basic rate is different from the actual result, the Group will assume the profit or loss according to the result.
Thus, a contract with a discretionary participation feature is a structure that establishes a conservative base rate and
shares the risks associated with the contract with the policyholder, and in the case of a contract without discretionary
participation element, the Group assumes the risk for the initial basis set by the Group.
iv-3) Risks associated with guarantees
The guarantee options inherent in insurance contracts include guaranteed minimum death benefit, guaranteed
minimum annuity guarantee benefit, and guaranteed minimum interest rate benefit. These guarantees can increase
cash flow outflows when market prices and interest rates fall below a certain level.
225
(b) Overview of the insurance risk – Shinhan EZ General Insurance, Ltd.
Insurance risk is the risk that arises in relation to the acquisition of insurance contracts and payment of insurance
claims, which are business of the Group, and is classified into insurance price risk and reserve risk. Insurance price
risk refers to the risk of exceeding the expected risk rate and expected expense ratio set at the time of insurance
premium calculation, and reserve risk refers to the loss of the Group due to the occurrence of more insurance payments
in the future due to insufficient reserves accumulated at the time of evaluation. Reserve risk is measured for general
non-life insurance.
i) Measurement and management
① Measurement of insurance risk

The insurance risk is measured by using the standard model (Article 7-2, Paragraph 4 of the Insurance Industry
Supervision Regulations) and calculated by dividing the insurance price risk and the reserve risk, and considering the
diversification effect on the assumption that the two risks are mutually independent. Insurance price risk is calculated
by multiplying the premium held by insurance product category by the risk coefficient, and reserve risk is calculated
by multiplying the risk coefficient by the reserve payable by insurance product category of general non-life insurance.
② The method of insurance risk management

The Group sets an insurance risk permissible limit every year, monitors compliance with the limit, and executes in
accordance with preset countermeasures when the limit is exceeded. In addition, underwriting guidelines, retention,
and reinsurance strategies are established and operated so that risks can be retained at an appropriate level for each
type of insurance.
ii) The target of insurance risk management
The insurance risk management targets of the Group are the appropriateness of the insurance price and the adequacy
of the reserve, and are identified as follows.
- Appropriateness of insurance price: Changes in the ratio of incurred loss to premium for earned risk (risk loss ratio)
are being verified.
- Adequacy of reserve: Based on the insurance industry supervision regulation, an evaluation of conducted for the
adequacy of reserves and a report on the review of reserve requirements is submitted to the Financial Supervisory
Service.
226
(b) Overview of the insurance risk – Shinhan EZ General Insurance Ltd. (continued)
iii) Insurance price
The product development department of the Group proceeds with product development according to the product
development and approval process so that the related department can fully review and make decisions about possible
risks in the development and sale of new products. In addition, pre-analysis and evaluation are conducted, such as
analysis of the adequacy of the expected risk rate and expected expense ratio of new products, profit and loss analysis,
etc., and a senior actuary confirms the adequacy of the basic documents and related coefficients.
iv) Accumulating reserves
The senior accountant regularly verifies the adequacy of the reserve by using the total amount estimation method.
Total amount estimation is based on Paid Ladder Development Method (PLDM), Incurred Ladder Development
Method (ILDM), Average Payment Method (APM), frequency/severity method, and Bornhuetter-Ferguson method.
It is calculated by applying the method allowed under the Supervisory Regulations, etc. In addition, we have submitted
a verification opinion on this to the Financial Supervisory Service.
v) Sensitivity analysis of insurance risk
The Group manages insurance risk by conducting sensitivity analysis based on the discount rate, claim payment rate,
retention rate and expense ratio, etc. that are judged to have a significant impact on the amount, timing and uncertainty
of the future cash flow of the insurer.
vi) Concentration of insurance risk and reinsurance
Every year, a reinsurance operation strategy for each item (automotive/general) is established and implemented after
deliberation and resolution by the Risk Management Committee. The reinsurance operation strategy is established
after reviewing its adequacy based on the Group's underlying assets, insurance risk level, and reinsurance cost.
- Objective of reinsurance transactions

- Setting acceptable risk holding limits and planning for ceding reinsurance
- Monitoring method for adequacy of reinsurance operation
- Method for selecting reinsurers and reinsurance brokers and criteria of security
In principle, reinsurance transactions are executed according to the reinsurance operation strategy, and in the case of
underwriting contracts in excess of the holding limit, the Risk Management Committee consider and determine
whether or not to underwrite.
vii) Credit risk from insurance contracts
Credit risk arising from contracts refers to economic losses resulting from the inability to fulfill the obligations
specified in the contracts due to default or deterioration of credit ratings of the counterparty, reinsurer. The Group
enters into voluntary reinsurance or special contractual reinsurance contracts with reinsurance companies or non-life
insurance companies for a part of the total insurance amount. The holding and reinsurance strategy is the risk transfer
strategy of the Group. Holding and ceding are determined through the risk evaluation of each contract. When applying
the new holding and reinsurance strategy, the expected profit and loss compared to the existing reinsurance strategy,
the expected profit and loss against risk, and the cost of financing are calculated. It is decided by the Risk Management
Committee.
227
(b) Overview of the insurance risk – Shinhan EZ General Insurance Ltd. (continued)
viii) Liquidity risk from insurance contracts
Liquidity risk arising from insurance contracts may result in inability to respond to a request for claim payment due
to mismatched fund management or loss due to the raising of high-interest financing to resolve such a mismatch of
funds or the unfavorable sale of owned assets. The Group the liquidity gap ratio of general accounts to manage
liquidity risk.
(c) Insurance liabilities as of December 31, 2022 and 2021 are as follows:

Policy reserve W 54,316,740 54,330,046
Policyholder’s equity adjustment (1,616) 3,452
W 54,315,124 54,333,498
(d) Policy reserve as of December 31, 2022 and 2021 are as follows:

Life insurance:
Variable interest rate W 27,303,550 29,399,446
Fixed interest rate 26,919,128 24,930,600
54,222,678 54,330,046
General insurance:
Automotive 1,880 -
General 89,297 -
Long-term 2,885 -
94,062 -
W 54,316,740 54,330,046
228
(e) The details of policy reserves for insurance risk classification as of December 31, 2022 and 2021 are as follows:
December 31, 2022

Individual insurance Group insurance
Pure
endowment Death Endowment Subtotal Pure protection Savings Subtotal
Premium reserve W 14,123,768 30,270,677 7,589,977 51,984,422 13,556 66 13,622
Guarantee reserve 20,514 278,826 745 300,085 - - -
Unearned premium reserve 2 1,642 - 1,644 1 - 1
Reserve for outstanding claims 275,089 1,182,023 338,747 1,795,859 14,154 - 14,154
Interest rate difference guarantee reserve 1,496 106 6 1,608 - - -
Mortality gains reserve 5,932 31,100 70 37,102 2 - 2
Interest gains reserve 22,202 209 10 22,421 - - -
Expense gains reserve 5,490 7,060 - 12,550 - - -
Long term duration dividend reserve 24,550 11,881 6 36,437 - - -
Reserve for policyholder’s profit dividend 1,616 - - 1,616 - - -
Reserve for losses on dividend insurance contract 1,155 - - 1,155 - - -
W 14,481,814 31,783,524 7,929,561 54,194,899 27,713 66 27,779
December 31, 2022

General insurance
Automotive General Long-term Subtotal Total
Premium reserve W - - 2,814 2,814 52,000,858
Guarantee reserve - - - - 300,085
Unearned premium reserve - 86,699 - 86,699 88,344
Reserve for outstanding claims 1,880 2,598 71 4,549 1,814,562
Interest rate difference guarantee reserve - - - - 1,608
Mortality gains reserve - - - - 37,104
Interest gains reserve - - - - 22,421
Expense gains reserve - - - - 12,550
Long term duration dividend reserve - - - - 36,437
Reserve for policyholder’s profit dividend - - - - 1,616
Reserve for losses on dividend insurance contract - - - - 1,155
W 1,880 89,297 2,885 94,062 54,316,740
229
(e) The details of policy reserves for insurance risk classification as of December 31, 2022 and 2021 are as follows (continued):
December 31, 2021

Pure
endowment Death Endowment Subtotal Pure protection Savings Subtotal Total
Premium reserve W 14,515,676 28,443,718 9,078,015 52,037,409 15,609 64 15,673 52,053,082
Guarantee reserve 24,717 284,474 871 310,062 - - - 310,062
Unearned premium reserve 1 1,660 - 1,661 8 - 8 1,669
Reserve for outstanding claims 266,157 1,137,858 424,897 1,828,912 14,376 - 14,376 1,843,288
Interest rate difference guarantee
reserve 1,734 130 7 1,871 - - - 1,871
Mortality gains reserve 6,894 34,085 88 41,067 2 - 2 41,069
Interest gains reserve 23,031 242 12 23,285 - - - 23,285
Expense gains reserve 6,068 7,595 - 13,663 - - - 13,663
Long term duration dividend reserve 26,799 12,663 7 39,469 - - - 39,469
Reserve for policyholder’s profit
dividend 1,635 - - 1,635 - - - 1,635
Reserve for losses on dividend
insurance contract 953 - - 953 - - - 953
W 14,873,665 29,922,425 9,503,897 54,299,987 29,995 64 30,059 54,330,046
230
(f) Changes in policy reserves
Changes in policy reserves for the years ended December 31, 2022 and 2021 are as follows:
December 31, 2022

Life insurance General insurance
Insurance Insurance
contracts with contracts with
fixed-interest variable-interest Subtotal Automotive General Long-term Subtotal Total
Beginning balance W 24,930,600 29,399,446 54,330,046 - - - - 54,330,046
Reserve (*) 1,988,528 (2,095,896) (107,368) 978 20,127 1,551 22,656 (84,712)
(Note 47) - - - 902 69,170 1,334 71,406 71,406
Ending balance W 26,919,128 27,303,550 54,222,678 1,880 89,297 2,885 94,062 54,316,740
(*) This is the amount of provision for insurance contract liabilities less changes in reinsurance assets and includes effects from changes in foreign exchange rate.
December 31, 2021

Insurance contracts with fixed- Insurance contracts with variable-
interest interest Total
Beginning balance W 23,414,098 29,977,303 53,391,401
Reserve (*) 1,516,502 (577,857) 938,645
Ending balance W 24,930,600 29,399,446 54,330,046
231
(g) Changes in policy reserves by insurance risk classification
Changes in policy reserves by insurance risk classification for the years ended December 31, 2022 and 2021 are as follows:
December 31, 2022

Individual insurance Group insurance General insurance
Pure Sub Pure Sub Auto- Long- Sub
endowment Death Endowment total protection Savings total motive General term total Total
Beginning 29,922,42
balance W 14,873,665 5 9,503,897 54,299,987 29,995 64 30,059 - - - - 54,330,046
Reserve
(reversal) (*) (391,851) 1,861,099 (1,574,336) (105,088) (2,282) 2 (2,280) 978 20,127 1,551 22,656 (84,712)
Business
combination
(Note 47) - - - - - - - 902 69,170 1,334 71,406 71,406
31,783,52
Ending balance W 14,481,814 4 7,929,561 54,194,899 27,713 66 27,779 1,880 89,297 2,885 94,062 54,316,740
December 31, 2021

Sub
Pure endowment Death Endowment Subtotal Pure protection Savings total Total
Beginning
balance W 14,936,578 28,074,444 10,346,489 53,357,511 33,828 62 33,890 53,391,401
Reserve
(reversal) (*) (62,913) 1,847,981 (842,592) 942,476 (3,833) 2 (3,831) 938,645
Ending balance W 14,873,665 29,922,425 9,503,897 54,299,987 29,995 64 30,059 54,330,046
232
(h) Reinsurance credit risk as of December 31, 2022 and 2021 are as follows:

Reinsurance Reinsurance
Reinsurance account Reinsurance account
assets receivable assets receivable
AAA W 22,687 4,525 - -
AA- to AA+ 33,859 53,317 15,310 23,472
A- to A+ 274,704 93,633 31,740 46,615
Unrated 118 204 - -
W 331,368 151,679 47,050 70,087
(i) Income or expenses on insurance for the years ended December 31, 2022 and 2021 are as follows:

Insurance income:
Premium income W 6,258,858 6,255,872
Reinsurance income (*1) 182,566 153,534
Provision for insurance liabilities (*1),(*2) 342,088 -
Separate account income 107,393 75,117
6,890,905 6,484,523
Insurance expenses:
Claims paid 6,467,553 5,346,364
Reinsurance premium expenses(*1) 456,732 175,282
Provision for insurance liabilities (*1),(*2) - 933,875
Separate account expenses 107,394 75,116
Acquisition costs 662,244 687,469
Collection expenses and discount fee 18,575 16,810
Deferred acquisition costs (398,660) (397,196)
Amortization of deferred acquisition costs 404,300 422,189
7,718,138 7,259,909
Net loss on insurance W (827,233) (775,386)

(*1) It includes reinsurance expenses of W244,855 million, reinsurance income of W 7,314 million and reversal of
insurance liabilities of W242,071 million due to an issuance of joint reinsurance.
(*2) Interest expenses on savings insurance contracts are included.
233
(j) Maturity of premium reserve as of December 31, 2022 and 2021 are as follows:
December 31, 2022

Less than or
equal to 1~3 3~7 7 ~ 10 10 ~ 20 More than
Life insurance:
Variable interest rate W 616,479 911,463 856,451 650,770 1,847,433 19,601,653 24,484,249
Fixed interest rate 223,095 546,105 1,011,399 698,021 1,979,082 23,056,093 27,513,795
839,574 1,457,568 1,867,850 1,348,791 3,826,515 42,657,746 51,998,044
General insurance:
Long-term - - - 40 2,774 - 2,814
Ending balance W 839,574 1,457,568 1,867,850 1,348,831 3,829,289 42,657,746 52,000,858
December 31, 2021

Less than or
equal to 1~3 3~7 7 ~ 10 10 ~ 20 More than
Life insurance:
Variable interest rate W 906,017 1,492,275 1,420,942 653,388 2,001,348 20,082,744 26,556,714
Fixed interest rate 99,289 471,909 772,549 687,077 2,072,122 21,393,422 25,496,368
Ending balance W 1,005,306 1,964,184 2,193,491 1,340,465 4,073,470 41,476,166 52,053,082
(k) Liability adequacy test, LAT
i) Scope
Liability adequacy tests were performed on the premium reserve, unearned premium reserve and guarantee reserve
for the contracts held at December 31, 2022. The premium reserve considered the amount net level premium reserve
less, where appropriate, deferred acquisition cost and Loan on policy in accordance with the Article 6-3 of Regulation
on Supervision of Insurance Business Act.
ii) Output overview
In the debt appraisal system, the insurance premium surplus method is applied to calculate premium deficits.
Premium deficiency refers to deficiency when the amount of accumulated reserve is insufficient due to a decrease in
the interest rate after the sale of the product or an increase in the risk rate compared with the expected basic rate at
the time of product development.
The insurance premium standard inspection method is a method of calculating the reserve amount based on the
present value of total income reflecting the interest rate, the risk rate, the business ratio, the cancelation rate, etc. and
the present value of the total expenditure, that is, interest rate(discount rate), business ratio, risk rate, and cancelation
rate calculated based on the Group’s own experience, which reflects company-specific characteristics, and does not
reflect subjective factors such as management's willingness to improve management.
234
(k) Liability adequacy test, LAT (continued)
iii) Assumptions and basis of calculation applied
The assumptions and basis of calculation applied to calculate the estimates of future cash flows when performing
liability adequacy test for the years ended December 31, 2022 and 2021 are as follows. The criteria of Insurance
contract liability adequacy test were changed during the period, and the Group has applied the change in the
accounting policy as it provides more reliable and relevant information on the estimate of future cash flows, and the
notes as of December 31, 2021 and January 1, 2021 have been restated.
Assumptions
December 31, December 31, January 1, Assumption applied and
2022 2021 2021 calculation method
The interest rate scenario
Shinhan Life calculated and presented
Insurance Co., Ltd. by the Financial
-2.838% -3.623% ~ 23.477% Supervisory Service as a
Discount rate -3.39% ~ 19.541%
~ 21.144% Orange Life scenario in which a
Insurance Co., Ltd. liquidity premium is
-3.623% ~ 23.477% added to the risk-free rate
of return scenario.
ㆍ Death due to other
causes: Based on the
statistics illustrating the
Shinhan Life past five-year experience,
Insurance Co., Ltd. the ratio of premiums to
9% 10.38% ~ 585.90% on-level risk premiums by
Mortality rate 16% ~ 751%
~ 771% Orange Life risk collateral and time
Insurance Co., Ltd. elapsed.
15% ~ 255% ㆍ Death due to natural
causes: The ratio of actual
mortality to the latest
expected mortality
Shinhan Life
Insurance Co., Ltd. Lapse rate by sales
0.53% ~ 29.83% channel, product, and
Surrender ratio 0% ~ 78% 0% ~ 84%
Orange Life time elapsed for the past
Insurance Co., Ltd. five years.
0% ~ 61%
235
iv) The result of liability adequacy test as of December 31, 2022 and 2021, and January 1, 2021 are as follows:
December 31, 2022

Premium surplus
Provisions for test LAT base (loss)
Participating:
Fixed interest W 1,388,054 1,679,179 (291,125)
Variable interest 2,082,019 2,890,311 (808,292)
Non- Participating:
Fixed interest 20,382,784 6,245,441 14,137,343
Variable interest 21,124,126 17,994,755 3,129,371
Variable type 147,988 (1,104,320) 1,252,308
Co-reinsurance 240,720 135,465 105,255
W 45,365,691 27,840,831 17,524,860
December 31, 2021

Premium surplus
Participating:
Fixed interest W 1,371,625 2,098,387 (726,762)
Non- Participating:
Fixed interest 18,749,426 8,155,797 10,593,629
Variable interest 23,059,035 21,378,217 1,680,818
Variable type 109,753 (1,437,388) 1,547,141
W 45,388,879 33,219,924 12,168,955
236
iv) The result of liability adequacy test as of December 31, 2022 and 2021 and January 1, 2021 are as follows
(continued):
< Shinhan Life Insurance>

January 1, 2021
Premium surplus
Participating:
Fixed interest W 598,793 1,371,496 (772,703)
Variable interest 915,382 1,062,384 (147,002)
Non- Participating:
Fixed interest 7,230,482 4,222,670 3,007,812
Variable interest 14,456,394 13,753,963 702,431
Variable type 165,259 61,212 104,047
W 23,366,310 20,471,725 2,894,585
<Orange Life Insurance>

January 1, 2021
Premium surplus
Participating:
Fixed interest W 745,614 793,719 (48,105)
Non- Participating:
Fixed interest 10,061,004 5,850,160 4,210,844
Variable interest 9,190,507 8,998,793 191,714
Variable type (15,032) (1,548,878) 1,533,846
W 21,156,900 15,792,778 5,364,122
237
[Shinhan EZ General Insurance Ltd.]
i) Scope
Liability adequacy tests are performed on the premium reserve and unearned premium reserve for the contracts held
at December 31, 2022. The premium reserve considered the amount net level premium reserve less, where
appropriate, deferred acquisition cost in accordance with the Article 6-3 of Regulation on Supervision of Insurance
Business Act.
ii) Output overview
In the debt appraisal system, the insurance premium surplus method is applied to calculate premium deficits.
Premium deficiency refers to deficiency when the amount of accumulated reserve is insufficient due to a decrease in
the interest rate after the sale of the product or an increase in the risk rate compared with the expected basic rate at
the time of product development.
The insurance premium standard inspection method is a method of calculating the reserve amount based on the
present value of total income reflecting the interest rate, the risk rate, the business ratio, the cancelation rate, etc. and
the present value of the total expenditure, that is, business ratio, risk rate, and cancelation rate calculated based on
the Group’s own experience, which reflects company-specific characteristics, and does not reflect subjective factors
such as management's willingness to improve management.
238
iii) Assumptions and basis of calculation applied
The assumptions and basis of calculation applied to calculate the estimates of future cash flows when performing
liability adequacy test for the year ended December 31, 2022 are as follows.
Assumptions
December 31, December 31, January 1, Assumption applied and
2022 2021 2021 calculation method
Long-term(*):
The interest rate scenario
calculated and presented
by the Financial
-2.838%~ Supervisory Service as a
Discount rate -3.39%~19.541% -3.623%~23.477%
21.144% scenario in which a
liquidity premium is
added to the risk-free rate
of return scenario.
Due to lack of empirical
statistics, the application of
long-term non-life insurance
Loss rate 49%~145% 19%~131% 3%~365% industry statistics and risk
rates applied to calculating
product prices by insurance
coverage
Due to lack of empirical
statistics, the application of
Lapse ratio 0%~18% 0%~17% 0%~15%
long-term non-life insurance
industry statistics
General:
Based on the statistics
illustrating the past five-
Loss rate 37% 36% 39% year experience, the ratio
of incurred loss to earned
premium
illustrating the past three-
Loss Assumed year experience, the ratio
19% 21% 11%
Expense ratio of best estimated
LAE(Loss Assumed
Expense) ratio
illustrating the past one-
Administration
expense ratio
70% 62% 63% year experience, the ratio
of best estimated expense
ratio
(*) Among the expense ratios, the new acquisition cost was calculated based on the amount to be executed in the
future in accordance with related regulations such as internal recruitment allowance regulations, and the
maintenance cost was calculated for each cost driver based on experience statistics for the last year.
239
iv) The result of liability adequacy test as of December 31, 2022 and 2021, and January 1, 2021 are as follows:
December 31, 2022

Premium surplus
Long-term W 16 2,627 (2,611)
General 85,187 86,699 (1,512)
W 85,203 89,326 (4,123)
December 31, 2021

Premium surplus
Long-term W 12 2,496 (2,484)
General 53,442 53,663 (221)
W 53,454 56,159 (2,705)
January 1, 2021
Premium surplus
Long-term W - (1,610) 1,610
General 21,453 19,188 2,265
W 21,453 17,578 3,875
28. Other liabilities
Other liabilities as of December 31, 2022 and 2021 are as follows:

Lease liabilities(*) W 623,339 612,690
Accounts payable 12,452,551 14,041,740
Accrued expenses 4,416,908 3,273,939
Dividend payable 34,698 32,275
Advance received 186,134 177,121
Unearned income 451,757 397,010
Withholding value-added tax and other taxes 750,547 673,294
Securities deposit received 2,451,521 1,985,269
Foreign exchange settlement pending 359,422 221,521
Domestic exchange settlement pending 2,308,574 1,890,408
Payable from trust account 6,579,457 5,191,901
Due to agencies 718,082 887,400
Deposits for subscription 18,931 133,550
Separate account liabilities 8,004,363 9,834,895
Sundry liabilities 2,149,043 1,563,832
Others 81,148 126,455
Present value discount (97,703) (52,464)
W 41,488,772 40,990,836
(*) As of December 31, 2022, the Group accounts for the lease liabilities as other liabilities. For the year ended
December 31, 2022, the amount of variable lease payments that are not included in the measurement of lease liabilities
is W 12,337 million, cash outflows from leases are W 279,406 million, and interest expense on lease liabilities is W
13,379 million. For the year ended December 31, 2021, the amount of variable lease payments that are not included
in the measurement of lease liabilities is W 79 million, cash outflows from leases are W 283,470 million, and interest
expense on lease liabilities is W 10,873 million.
240
29. Equity
(a) Equity as of December 31, 2022 and 2021 are as follows:

Capital stock:
Common stock W 2,608,176 2,608,176
Preferred stock 361,465 361,465
2,969,641 2,969,641
Hybrid bond 4,196,968 3,334,531
Capital surplus:
Share premium 11,352,819 11,352,819
Others 742,224 742,224
12,095,043 12,095,043
Capital adjustments (582,859) (664,429)
Accumulated other comprehensive income, net of tax:

Loss on financial assets at fair value through other comprehensive
income (3,053,865) (614,872)
Gain (loss) on financial assets at fair value through profit or loss
(Overlay approach) (78,276) 141,821
Equity in other comprehensive income of associates (8,126) 7,595
Foreign currency translation adjustments for foreign operations (112,283) (125,219)
Net loss from cash flow hedges (96,965) (26,471)
Other comprehensive loss of separate account (136,057) (22,850)
Remeasurement of net defined benefit liabilities (assets) (91,993) (343,124)
Changes in own credit risk on financial liabilities designated under fair
value option (5,155) (1,816)
(3,582,720) (984,936)
Retained earnings(*1),(*2),(*3) 33,342,633 30,541,300
Non-controlling interest(*4),(*5) 2,691,716 2,247,272

W 51,130,422 49,538,422
(*1) As of December 31, 2022 and 2021, profits reserved by the Group as of Article 53 of the Financial Holding
Companies Act amounted to W2,573,435 million and W2,432,039 million, respectively.
(*2) As of December 31, 2022 and 2021, the regulatory reserves for loan losses the Group appropriated in retained
earnings are W18,524 million and W15,552 million, respectively.
(*3) As of December 31, 2022, profit dividends within retained earnings of subsidiaries of the Group restricted in
accordance with laws, etc. are amounted to W7,428,897 million.
(*4) As of December 31, 2022 and 2021, the total amounts of hybrid bonds that Shinhan Bank, Jeju Bank, Shinhan
Capital Co,.Ltd. and Shinhan Life Insurance Co., Ltd. have recognized as non-controlling interests are W2,537,569
million and W2,035,762 million, respectively. And, for the years ended December 31, 2022 and 2021, the amounts of
dividends paid for the hybrid bonds by Shinhan Bank, Jeju Bank, Shinhan Capital Co,.Ltd. and Shinhan Life Insurance
Co., Ltd. W81,262 million and W71,746 million, respectively, are allocated to profit attributed to non-controlling
interest.
(*5) During the year ended December 31, 2022, non-controlling interests decreased by W 89,912 million due to the
acquisition of remaining shares by Shinhan Asset Trust Co., Ltd., and non-controlling interests increased by W 19,454
million due to paid-in capital increase of Shinhan EZ General Insurance, Ltd. During the year ended December 31,
2021, non-controlling interests decreased by W 59,709 million due to the acquisition of the remaining shares by
Shinhan Asset Management Co., Ltd.
241
(In millions of won, except per share data)
29. Equity (continued)
(b) Capital stock
Capital stock of the Group as of December 31, 2022 and 2021 are as follows:
Number of authorized shares 1,000,000,000

Par value per share in won W 5,000
Number of issued common stocks as of December 31, 2022 508,784,869
Number of issued common stocks as of December 31, 2021 516,599,554
Number of issued preferred stocks as of December 31, 2022 and 2021 17,482,000
The details of changes in the number of common shares outstanding as of December 31, 2022 and 2021 are as follows:

Beginning balance 516,593,202 515,894,758
Increase - 700,870
Decrease (7,814,685) (2,426)
Ending balance 508,778,517 516,593,202
(c) The details of preferred stock are as follows:
The number of Contracted

shares dividend rate Conversion request period(*)
4.0% per year based
Convertible preferred on issue price
17,482,000 2020.05.01~2023.04.30
stock (non-cumulative
participating)
(*) Preferred stocks that have not been converted for 4 years from the issuance date and until the expiration date of
the period of existence are automatically converted to common stocks at the expiration date of the period of existence.
242
(d) Hybrid bonds
Hybrid bonds classified as other equity instruments as of December 31, 2022 and 2021 are as follows:
Interest December 31, December 31,

Issue date Maturity date rate (%) 2022 2021
June 25, 2015 June 25, 2045 4.38 W 199,455 199,455
September 15, 2017 Perpetual bond 3.77 - 134,683
September 15, 2017 Perpetual bond 4.25 89,783 89,783
April 13, 2018 Perpetual bond 4.08 134,678 134,678
April 13, 2018 Perpetual bond 4.56 14,955 14,955
August 29, 2018 Perpetual bond 4.15 398,679 398,679
June 28, 2019 Perpetual bond 3.27 199,476 199,476
KRW
September 17, 2020 Perpetual bond 3.12 448,699 448,699
March 16, 2021 Perpetual bond 2.94 429,009 429,009
March 16, 2021 Perpetual bond 3.30 169,581 169,581
January 25, 2022 Perpetual bond 3.90 560,438 -
January 25, 2022 Perpetual bond 4.00 37,853 -
August 26, 2022 Perpetual bond 4.93 343,026 -
August 26, 2022 Perpetual bond 5.15 55,803 -
USD August 13, 2018 Perpetual bond 5.88 559,526 559,526

May 12, 2021 Perpetual bond 2.88 556,007 556,007
W 4,196,968 3,334,531
(*) For the year ended December 31, 2022, the deduction for capital related to hybrid bonds issued is W2,880
million.
The hybrid bonds above can be repaid early after 5 or 10 years from the date of issuance, and the controlling company
has an unconditional right to extend the maturity under the same condition.
(e) Capital adjustments
Changes in capital adjustments for the years ended December 31, 2022 and 2021 are as follows:

Beginning balance W (664,429) (687,935)
Acquisition of treasury stocks (300,000) (79)
Disposal and retirement of treasury stocks 300,000 23,589
The acquisition commitment amount for subsidiaries’ remaining shares 86,711 -
Repayments of hybrid bonds (317) -
Other transactions with owners (4,824) (4)
Ending balance W (582,859) (664,429)
243
(f) Accumulated other comprehensive income
Changes in accumulated other comprehensive income for the years ended December 31, 2022 and 2021 are as follows:
December 31, 2022

Items that are or may be reclassified to profit or loss Items that will never be reclassified to profit or loss
Gain (loss) on fi
Gain (loss) on nancial
Gain (loss) on valuation of Equity in Foreign Other Equity in Gain (loss) on s Liabilities
securities at financial asset other currency Net gain comprehen- Remeasure other ecurities at measured at
fair value measured at comprehensiv translation (loss) sive income -ments of comprehensiv fair value FVTPL
through other FVTPL e income adjustments from cash (loss) of the defined e income through other attributable to
comprehensive (overlay (loss) of for foreign flow separate benefit (expense) of comprehensive i changes in
income approach) associates operations hedges account plans associates ncome credit risk Total
Beginning balance W (730,295) 141,821 7,623 (125,219) (26,471) (22,850) (343,124) (28) 115,423 (1,816) (984,936)
Change due to fair value (3,340,230) (299,934) (16,914) - - (153,594) - 9 19,610 (5,919) (3,796,972)
Reclassification:
Change due to
impairment or
disposal (37,142) - (7,333) - - - - - - - (44,475)
Effect of hedge
accounting - - - - (190,372) - - - - - (190,372)
Hedging 63,480 - - (25,793) 90,328 - - - - - 128,015
Effects from changes in
foreign exchange rate - - - 40,679 - - - - (823) - 39,856
Remeasurements of the
defined benefit plans - - - - - - 348,248 - - - 348,248
Deferred income
taxes(*) 866,180 79,837 8,489 (154) 29,550 40,387 (96,257) (14) (11,520) 1,170 917,668
Transfer to other
account - - - - - - - 42 (2,134) 1,410 (682)
Non-controlling
interests 3,586 - - (1,796) - - (860) - - - 930
Ending balance W (3,174,421) (78,276) (8,135) (112,283) (96,965) (136,057) (91,993) 9 120,556 (5,155) (3,582,720)
(*) The effect of the tax rate change due to the revision of the tax law at the end of 2022 was reflected.
244
(f) Accumulated other comprehensive income (continued)
Changes in accumulated other comprehensive income for the years ended December 31, 2022 and 2021 are as follows (continued):
December 31, 2021

Items that are or may be reclassified to profit or loss Items that will never be reclassified to profit or loss
Gain (loss) on fi
Gain (loss) on nancial
Gain (loss) on valuation of Equity in Foreign Other Equity in Gain (loss) on s Liabilities
securities at financial asset other currency Net gain comprehen- Remeasure other ecurities at measured at
fair value measured at comprehensiv translation (loss) sive income -ments of comprehensiv fair value FVTPL
through other FVTPL e income adjustments from cash (loss) of the defined e income through other attributable to
comprehensive (overlay (loss) of for foreign flow separate benefit (expense) of comprehensive i changes in
income approach) associates operations hedges account plans associates ncome credit risk Total
Beginning balance W 146,829 161,919 4,875 (377,061) (48,171) 18,423 (385,780) (26) 79,982 (5,171) (404,181)
Change due to fair value (1,110,290) (31,924) 6,517 - - (56,484) - (3) 21,408 (1,526) (1,172,302)
Reclassification:
Change due to
impairment or
disposal (114,399) - - - - - - - - - (114,399)
Effect of hedge
accounting - - - - (209,869) - - - - - (209,869)
Hedging 10,627 - - (74,525) 239,800 - - - - - 175,902
Effects from changes in
foreign exchange rate - - - 333,059 - - - - 673 - 333,732
Remeasurements of the
defined benefit plans - - - - - - 59,441 - - - 59,441
Deferred income taxes 334,391 11,826 (3,769) (6,226) (8,231) 15,211 (16,164) 1 (16,061) (1,272) 309,706
Transfer to other
account - - - - - - - - 29,421 6,153 35,574
Non-controlling
interests 2,547 - - (466) - - (621) - - - 1,460
Ending balance W (730,295) 141,821 7,623 (125,219) (26,471) (22,850) (343,124) (28) 115,423 (1,816) (984,936)
245
(g) Appropriation of retained earnings
The appropriation of retained earnings for the years ended December 31, 2022 and 2021 are as follows:

Date of appropriation: March 23, 2023 March 24, 2022
Unappropriated retained earnings:
Balance at beginning of year W 5,461,771 5,355,358
Retirement of treasury stock (300,661) -
Dividend to hybrid bonds (156,277) (116,388)
Interim dividends (637,598) (299,082)
Net income 1,249,251 1,413,956
5,616,486 6,353,844
Appropriation of retained earnings:
Legal reserve 124,925 141,396
Dividends
Dividends on common stocks paid 440,093 723,230
Dividends on preferred stocks paid 15,122 24,475
Regulatory reserve for loan losses 2,554 2,972
Loss on repayments of hybrid bonds 317 -
583,011 892,073
Unappropriated retained earnings
to be carried over to subsequent year W 5,033,475 5,461,771
(*) These statements of appropriation of retained earnings are based on the separate financial statements of Shinhan
Finance Group.
(h) Regulatory reserve for loan losses
In accordance with Regulations for the Supervision of Financial Institutions, the Group reserves the difference
between allowance for credit losses by K-IFRS and that as required by the Regulations at the account of regulatory
reserve for loan losses in retained earnings.
i) Changes in regulatory reserve for loan losses including non-controlling interests as of December 31, 2022 and

Planned regulatory provision (reversal) of loan losses (37,228) 369,416
Ending balance W 3,662,087 3,699,315
246
(h) Regulatory reserve for loan losses (continued)
ii) Profit attributable to equity holders of Shinhan Financial Group and earnings per share after factoring in
regulatory reserve for loan losses for the years ended December 31, 2022 and 2021 are as follows:

Profit attributable to equity holders of Shinhan Financial Group W 4,642,292 4,019,254
Provision for regulatory reserve for loan losses 37,614 (364,882)
Profit attributable to equity holders of Shinhan Financial Group adjusted
for regulatory reserve W 4,679,906 3,654,372
Basic and diluted earnings per share adjusted for regulatory reserve in
won(*) 8,525 6,625
(*) Dividends for hybrid bonds are deducted.
(i) Treasury stock
The acquisitions of treasury stock for the years ended December 31, 2022 and 2021 are as follows:
December 31, 2022(*) December 31, 2021

The number of The number of
Carrying value Carrying value
share share
Beginning balance 6,352 W 227 704,796 W 28,215
Acquisition 7,814,685 300,000 2,426 79
Disposal - - (700,870) (28,067)
Retirement (7,814,685) (300,000) - -
Ending balance 6,352 W 227 6,352 W 227
(*) The controlling company has acquired treasury stocks for retirement for the years ended December 31, 2022 and
completed retirement of treasury stocks by retained earnings on April 25 (3,665,423 shares) and November 23, 2022
(4,149,262 shares).
247
30. Dividends
(a) For the year ended December 31, 2022, the interim dividends paid are as follows:
Dividend base date Amount

st Common stock (W400 per share) W 206,277
March 31, 2022 (1 Quarter)
Convertible preferred stock (W400 per share) 6,993
W 213,270
Common stock (W400 per share) W 205,171

June 30, 2022 (2nd Quarter)
W 212,164
Common stock (W400 per share) W 205,171

September 30, 2022 (3rd Quarter)
W 212,164
W 637,598
(b) Details of dividends recognized as distributions to stockholders for the years ended December 31, 2022 and 2021
are as follows:
December 31, 2022(*1) December 31, 2021

Common Stock:
Total number of shares issued and outstanding 508,784,869 516,599,554
Par value per share in won 5,000 5,000
Dividend per share in won 865 1,400
Dividends(*2) W 440,093 723,230
Dividend rate per share % 17.3 28.0
Preferred Stock:
Total number of shares issued and outstanding 17,482,000 17,482,000
Par value per share in won 5,000 5,000
Dividend per share in won 865 1,400
Dividends W 15,122 24,475
Dividend rate per share % 17.3 28.0
(*1) The current dividend(plan) will be decided on March 23, 2023. The amount of dividends was not recognized as
a distribution to the owner during the period.
(*2) Dividends on own shares held by the Group are excluded.
248
30. Dividends (continued)
(c) The details of dividends paid by the Group related to the preferred stock issued for the years ended December 31,
December 31, 2022

Dividend per Issue price per
Total Dividend rate per
Number of shares share share
dividend paid issue price (%)
(in won) (in won)
Convertible
preferred stock 17,482,000 2,065 36,101 42,900 4.81
December 31, 2021

Dividend per Issue price per
Total Dividend rate per
Number of shares share share
dividend paid issue price (%)
(in won) (in won)
Convertible
preferred stock 17,482,000 1,960 34,265 42,900 4.57
(d) Dividends for hybrid bond is calculated as follows for the years ended December 31, 2022 and 2021:

Amount of hybrid bond W 4,212,700 3,347,700
Interest rate (%) % 2.88 ~ 5.88 2.88 ~ 5.88
Dividends W 156,277 116,388
249
31. Net interest income
Net interest income for the years ended December 31, 2022 and 2021 are as follows:

Interest income:
Cash and due from banks at amortized cost W 272,407 85,846
Deposits at FVTPL 1,329 1,298
Securities at FVTPL 870,441 659,927
Securities at FVOCI 1,209,153 896,027
Securities at amortized cost 1,275,368 1,091,974
Loans at amortized cost 16,316,497 11,889,767
Loans at FVTPL 69,146 35,587
Others 94,325 63,804
20,108,666 14,724,230
Interest expense:
Deposits 4,642,670 2,173,804
Financial liabilities designated at FVTPL 1,296 -
Borrowings 938,641 330,548
Debt securities issued 1,901,458 1,390,230
Others 160,920 60,323
7,644,985 3,954,905
Net interest income W 12,463,681 10,769,325
250
32. Net fees and commission income
Net fees and commission income for the years ended December 31, 2022 and 2021 are as follows:

Fees and commission income:
Credit placement fees W 68,002 71,480
Commission received as electronic charge receipt 147,727 148,626
Brokerage fees 341,634 577,238
Commission received as agency 136,114 146,662
Investment banking fees 232,512 188,644
Commission received in foreign exchange activities 295,161 271,808
Trust management fees 308,353 310,376
Credit card fees 1,202,129 1,175,084
Operating lease fees(*) 478,374 365,447
Others 900,570 884,520
4,110,576 4,139,885
Fees and commission expense:
Credit-related fee 37,331 38,668
Credit card fees 895,787 836,990
Others 651,892 589,230
1,585,010 1,464,888
Net fees and commission income W 2,525,566 2,674,997

(*) Among operating lease fees recognized for the years ended December 31, 2022 and 2021, there is no variable lease
fee income which does not vary by index or rate.
33. Dividend income
Dividend income for the years ended December 31, 2022 and 2021 are as follows:

Securities at FVTPL W 115,533 100,315
Securities at FVOCI 26,996 24,216
W 142,529 124,531
251
34. Net gain (loss) on financial instruments measured at fair value through profit or loss
Net gain (loss) on financial instruments measured at fair value through profit or loss for the ended December 31,

Net loss on due from banks measured at FVTPL
Loss on valuation W (10,600) (296)
Loss on sale - (1,479)
(10,600) (1,775)
Net gain (loss) on loans measured at FVTPL
Loss on valuation (35,652) (78,416)
Gain on sale 14,063 15,312
(21,589) (63,104)
Net gain (loss) on securities measured at FVTPL
Debt securities
Gain (loss) on valuation (432,967) 97,281
Loss on sale (86,011) (92,230)
Other gains 573,600 506,980
54,622 512,031
Equity securities
Gain (loss) on valuation (67,022) 180,363
Gain (loss) on sale (124,557) 199,702
(191,579) 380,065
Other
Gain on valuation 2,089 9,316
(134,868) 901,412
Net gain (loss) on financial liabilities measured at FVTPL

Debt securities
Gain (loss) on valuation 41,317 (7,745)
Gain (loss) on disposal 53,067 (67,522)
94,384 (75,267)
Other
Gain on disposal 2,724 3,489
(36,273) (22,735)
58,111 (98,002)
Derivatives:
Gain on transaction 524,599 429,228
(195,167) 365,100
W (304,113) 1,103,631
252
35. Net gain (loss) on financial instruments designated at fair value through profit or loss
Net gain (loss) on financial instruments designated at fair value through profit or loss for the years ended December
31, 2022 and 2021 are as follows:

2022 2021
Financial liabilities designated at fair value through profit or loss:
Debt securities issued:
Gain on valuation W 2,673 -
Compound financial instruments:
Gain on valuation 804,068 423,914
Loss on sale and redemption (229,799) (512,215)
574,269 (88,301)
W 576,942 (88,301)
36. Reversal of (provision for) credit loss allowance
Reversal of (provision for) credit loss allowance on financial assets for the years ended December 31, 2022 and 2021
are as follows:

Allowance provided:
Loans at amortized cost W (1,244,424) (907,070)
Other financial assets at amortized cost (32,779) (52,162)
Securities at fair value through other comprehensive income - (19,697)
Unused credit line and financial guarantee (19,132) -
Securities at amortized cost - (5,305)
(1,296,335) (984,234)
Allowance reversed:
Securities at fair value through other comprehensive income W 3,748 -
Securities at amortized cost 291 -
Unused credit commitment and financial guarantee - 9,549
4,039 9,549
W (1,292,296) (974,685)
253
37. General and administrative expenses
General and administrative expenses for the years ended December 31, 2022 and 2021 are as follows:

Employee benefits:
Salaries W 3,423,186 3,283,436
Severance benefits:
Defined contribution 38,902 38,577
Defined benefit 169,882 192,614
Termination benefits 154,012 268,089
3,785,982 3,782,716
Entertainment 46,359 38,552

Depreciation 516,164 490,457
Amortization 186,448 155,202
Taxes and utility bills 226,197 187,432
Advertising 339,955 280,780
Research 29,289 25,320
Others 883,120 782,629
W 6,013,514 5,743,088
254
38. Share-based payments
(a) Performance shares granted as of December 31, 2022 are as follows:
Expired Not expired

Type Cash-settled share-based payment
Performance conditions Relative stock price linked (20.0%), management index (80.0%)
4 years from the commencement date of the year

Exercising period
to which the grant date belongs
Estimated number of shares vested at December 31, 2022 743,160 2,182,644
W 44,222, W 33,122,
W 37,387 and W 37,081 for
Fair value per share in Korean won (*) W 35,200
the expiration of exercising
period from 2019 to 2022
(*) Based on performance-based stock compensation, the reference stock price (the arithmetic average of the
weighted average share price of transaction volume for the past two month, the previous one month, and the past one
week) of four years after the commencement of the grant year is paid in cash, and the fair value of the reference stock
to be paid in the future is assessed as the closing price of the settlement.
255
38. Share-based payments (continued)
(b) Share-based compensation costs for the years ended December 31, 2022 and 2021 are as follows:
December 31, 2022

Employees of
The controlling
company The subsidiaries Total
Stock options granted:
7th(*) W - - -
Performance shares 3,159 25,092 28,251
W 3,159 25,092 28,251
December 31, 2021

Employees of
The controlling
Stock options granted:
7th(*) W (1) (1) (2)
Performance shares 4,286 32,899 37,185
W 4,285 32,898 37,183
(*) As of December 31, 2021, all stock options have expired.
(c) Accrued expenses as of December 31, 2022 and 2021 are as follows:
December 31, 2022

Accrued expense
The controlling
Performance shares W 12,746 91,469 104,215
December 31, 2021(*)

Accrued expense
The controlling
Performance shares W 10,598 82,498 93,096
(*) As of December 31, 2021, all stock options have expired.
256
39. Net other operating expense
Other operating income and other operating expense for the years ended December 31, 2022 and 2021 are as follows:

Other operating income
Gain on disposal of assets:
Loans at amortized cost W 33,147 18,843
Others:
Gain on hedged items 1,122,823 501,676
Reversal of allowance for guarantees and acceptances 410 -
Gain on other trust accounts 142 44,238
Reversal of other allowance 13,348 8,886
Others 448,640 356,611
1,585,363 911,411
W 1,618,510 930,254
Other operating expense
Loss on disposal of assets:
Loans at amortized cost W 5,533 347
Others:
Loss on hedged items 1,089,220 518,891
Fund contribution 440,715 397,884
Provision for guarantees and acceptances - 3,457
Provision for other debt allowances 22,721 52,123
Depreciation of operating lease assets 351,208 257,033
Others 1,458,617 1,190,546
3,362,481 2,419,934
W 3,368,014 2,420,281
Net other operating expenses W (1,749,504) (1,490,027)
257
40. Net other non-operating income
Other non-operating income and other non-operating expense for the years ended December 31, 2022 and 2021 are
as follows:

Other non-operating income
Gain on disposal of assets:
Property and equipment W 67,411 1,836
Investment property 29,305 108
Assets held for sale (*1) 448,770 16,976
Lease assets 36 247
Right-of-use assets 4,131 2,986
549,653 22,153
Investments in associates:
Gain on disposal 8,965 39,593
Reversal of impairment loss 5,924 -
14,889 39,593
Others:
Rental income on investment property 33,366 35,887
Reversal of impairment losses on intangible asset 396 372
Gain from assets contributed 4 20
Gain from bargain purchase 12,349 -
Others 75,504 64,272
121,619 100,551
686,161 162,297
Other non-operating expense

Loss on disposal of assets:
Property and equipment 2,546 2,027
Investment property - 2,111
Lease assets 9 -
Right-of-use assets 737 2,920
Others 183 1,186
3,475 8,244
Loss on disposal 19,045 11,002
Impairment loss 7,529 10,719
26,574 21,721
Others:
Donations 67,558 64,098
Depreciation of investment properties 18,115 21,616
Impairment loss on property and equipment - 7,594
Impairment loss on intangible assets 3,158 34,916
Write-off of intangible assets 1,822 1,346
Expenses on collection of special bonds 10,259 11,275
Others (*2) 215,725 518,519
316,637 659,364
346,686 689,329
Net other non-operating gain (loss) W 339,475 (527,032)

(*1) Gain and loss on disposal of sale-and-leaseback are included in gain and loss on disposal of property and
equipment, gain and loss on disposal of investment property and gain on assets held for sale, respectively. Gain on
disposal of sale-and-leaseback for the years ended December 31, 2022 and 2021 are W 443,780 million and W 9,761
million, respectively.
(*2) It includes W 168,020 million and W 466,775 million, respectively, for the years ended December 31, 2022 and
2021 of estimated claim for damages that are highly probable to be paid in case of customer losses expected due to
redemption delays of Lime CI funds, etc.
258
41. Income tax expense
(a) Income tax expense for the years ended December 31, 2022 and 2021 are as follows:

Current income tax expense W 1,666,075 1,498,819
Temporary differences (*) (926,267) (322,279)
Income tax recognized in other comprehensive income (*) 877,280 294,496
Income tax expenses W 1,617,088 1,471,036
(*) As the corporate tax rate was changed due to the tax law revision in the end of 2022, the effect of the tax rate
change was reflected in deferred tax assets (liabilities) expected to be realized 2023 onward.
(b) Income tax expense calculated by multiplying net income before tax with the tax rate for the years ended
December 31, 2022 and 2021 are as follows:

Profit before income taxes W 6,349,251 5,583,664
Income taxes at statutory tax rates 1,735,682 1,530,030

Adjustments:
Non-taxable income (13,902) (8,417)
Non-deductible expense 16,762 15,975
Tax credit (1,233) (159)
Others (120,221) (66,393)
Income tax expense W 1,617,088 1,471,036
Effective tax rate % 25.47 26.35
259
41. Income tax expense (continued)
(c) Deferred tax expenses by origination and reversal of deferred assets and liabilities and temporary differences for
the years ended December 31, 2022 and 2021 are as follows:
December 31, 2022

Other
Beginning comprehensive Ending
Balance Profit or loss income(loss) Balance(*2)
Unearned income W (340,992) (9,780) - (350,772)
Account receivable (26,580) 2,885 - (23,695)
Financial assets measured at fair
value 266,958 84,474 937,122 1,288,554
Investment in associates and etc. 178,262 (3,681) 8,829 183,410
Valuation and depreciation of
property and equipment (136,170) 34,750 - (101,420)
Derivative asset 21,649 207,136 32,965 261,750
Deposits 24,430 12,617 - 37,047
Accrued expenses 154,716 55,021 (9) 209,728
Defined benefit obligation 549,950 23,951 (98,124) 475,777
Plan assets (601,844) (36,244) 2,107 (635,981)
Other provisions 389,546 9,304 - 398,850
Allowance for acceptances and
guarantees 32,462 (8,039) - 24,423
Allowance related to asset
revaluation (49,713) 1,822 - (47,891)
Allowance for expensing
depreciation (274) 72 - (202)
Accrued contributions 36,114 925 - 37,039
Financial liabilities designated at
fair value through profit of loss (74,655) (204,434) - (279,089)
Allowances 132,239 33,839 - 166,078
Constructive dividend 16,737 450 - 17,187
Liability under insurance contracts 1,871 (15) - 1,856
Others (882,404) (111,817) (5,609) (999,830)
(307,698) 93,236 877,281 662,819
Expired unused tax losses:
Extinguishment of deposit and
insurance liabilities 266,605 (47,047) - 219,558
W (41,093) 46,189 877,281 882,377
(*1) Deferred tax assets from overseas subsidiaries are decreased by W 2,797 million due to foreign exchange rate
movements.
(*2) As the corporate tax rate was changed due to the tax law revision in the end of 2022, the effect of the tax rate
change was reflected in deferred tax assets (liabilities) expected to be realized 2023 onward.
260
(c) Deferred tax expenses by origination and reversal of deferred assets and liabilities and temporary differences for
the years ended December 31, 2022 and 2021 are as follows (continued):
December 31, 2021

Other
Beginning comprehensive Ending
Balance Profit or loss income(loss) Balance(*)
Unearned income W (328,278) (12,714) - (340,992)
Account receivable (29,078) 2,498 - (26,580)
Financial assets measured at fair
value (142,085) 83,716 325,327 266,958
Investment in associates and etc. 161,270 22,616 (5,624) 178,262
Valuation and depreciation of
property and equipment (150,786) 14,616 - (136,170)
Derivative asset (liability) (55,590) 86,234 (8,995) 21,649
Deposits 27,632 (3,202) - 24,430
Accrued expenses 140,864 13,852 - 154,716
Defined benefit obligation 538,654 26,411 (15,115) 549,950
Plan assets (553,907) (47,067) (870) (601,844)
Other provisions 312,278 77,268 - 389,546
Allowance for acceptances and
guarantees 88,050 (55,588) - 32,462
Allowance related to asset
revaluation (49,713) - - (49,713)
Allowance for expensing
depreciation (337) 63 - (274)
Accrued contributions 16,618 19,496 - 36,114
Financial liabilities designated at
fair value through profit of loss (28,226) (46,429) - (74,655)
Allowances 223,651 (91,412) - 132,239
Constructive dividend 16,291 446 - 16,737
Liability under insurance contracts 1,739 132 - 1,871
Deficit carried over 311 (311) - -
Others (837,736) (44,441) (227) (882,404)
(648,378) 46,184 294,496 (307,698)
Expired unused tax losses:
Extinguishment of deposit and
insurance liabilities 284,067 (17,462) - 266,605
W (364,311) 28,722 294,496 (41,093)
(*) Deferred tax assets from overseas subsidiaries are increased by W 939 million due to foreign exchange rate
movements.
261
(d) Deferred tax assets and liabilities that are directly charged or credited to equity for the years ended December 31,
January 1, 2022 Changes December 31, 2022

OCI Tax effect OCI Tax effect OCI Tax effect
Gain (loss) on valuation of financial assets
measured at FVOCI W (824,213) 209,342 (3,293,654) 854,660 (4,117,867) 1,064,002
Gain (loss) on financial liabilities measured at
FVTPL attributable to changes in credit risk (2,506) 689 (4,508) 1,170 (7,014) 1,859
Foreign currency translation adjustments for
foreign operations (116,876) (8,343) 13,091 (155) (103,785) (8,498)
Gain (loss) on cash flow hedges (38,004) 11,532 (100,043) 29,551 (138,047) 41,083
Equity in other comprehensive income(loss) of
associates 13,362 (5,766) (24,196) 8,474 (10,834) 2,708
The accumulated other comprehensive
income(loss) in separate account(*) (31,072) 8,223 (153,594) 40,387 (184,666) 48,610
Remeasurements of the defined benefit liability (473,356) 130,232 347,388 (96,257) (125,968) 33,975
Gain (loss) on valuation of financial asset
measured at FVTPL (Overlay approach) 192,125 (50,304) (299,934) 79,837 (107,809) 29,533
W (1,280,540) 295,605 (3,515,450) 917,667 (4,795,990) 1,213,272
January 1, 2021 Changes December 31, 2021

OCI Tax effect OCI Tax effect OCI Tax effect
Gain (loss) on valuation of financial assets
measured at FVOCI W 335,800 (108,989) (1,160,013) 318,331 (824,213) 209,342
Gain (loss) on financial liabilities measured at
FVTPL attributable to changes in credit risk (7,133) 1,961 4,627 (1,272) (2,506) 689
Foreign currency translation adjustments for
foreign operations (374,944) (2,117) 258,068 (6,226) (116,876) (8,343)
Gain (loss) on cash flow hedges (67,935) 19,764 29,931 (8,232) (38,004) 11,532
Equity in other comprehensive income(loss) of
associates 6,850 (2,000) 6,512 (3,766) 13,362 (5,766)
The accumulated other comprehensive
income(loss) in separate account(*) 25,412 (6,988) (56,484) 15,211 (31,072) 8,223
Remeasurements of the defined benefit liability (532,176) 146,396 58,820 (16,164) (473,356) 130,232
Gain (loss) on valuation of financial asset
measured at FVTPL (Overlay approach) 224,049 (62,130) (31,924) 11,826 192,125 (50,304)
W (390,077) (14,103) (890,463) 309,708 (1,280,540) 295,605
(*) Deferred tax effects, which are originated from the accumulated other comprehensive income in separate account,
are included in the other liabilities of principle and interest guaranteed separate account's financial statement.
262
(e) The amount of deductible temporary differences that are not recognized as deferred tax assets as of December 31,

Temporary differences related to
W 119,553 -
Shinhan EZ General Insurance, Ltd. (*)
(*) Shinhan EZ General Insurance, Ltd., a newly incorporated subsidiary for the current period, suffered a net loss for
the current period, etc. As of the end of 2022, deferred corporate tax assets were not recognized as it was determined
that the temporary difference to be deducted in excess of the temporary difference to be added and the tax loss were
not feasible. The expiration date of unused carried tax losses not recognized as deferred tax assets as of the end of the
reporting period is as follows:
Less than 1~2 2~3 More than 3

1 year years years years Total
Tax loss carried-forward W 9,207 19,979 9,006 76,230 114,422
(f) The amount of temporary difference regarding investment in subsidiaries that are not recognized as deferred tax
liabilities as of December 31, 2022 and 2021 are as follows:

Investment in subsidiaries, etc. W (8,888,268) (8,486,919)
(g) The Group set off a deferred tax asset against a deferred tax liability of the same taxable entity if, and only if,
they relate to income taxes levied by the same taxation authority and the entity has a legally enforceable right to set
off current tax assets against current tax liabilities. Deferred tax assets and liabilities presented on a gross basis prior
to any offsetting as of December 31, 2022 and 2021 are as follows:

Deferred tax assets W 1,072,327 593,852
Deferred tax liabilities (189,950) (634,945)
(h) As of the end of 2022, the Group is in the process of litigation for cases where tax uncertainty exists (claim
amount: W 30,590 million). The Group determined that there is a high probability of winning the case and reflected
it as current corporate tax assets and corporate tax expenses.
263
42. Earnings per share
(a) Basic and diluted earnings per share for the years ended December 31, 2022 and 2021 are as follows:

Profit attributable to equity holders of Shinhan Financial Group W 4,642,292 4,019,254
Less:
Dividends to hybrid bond (156,277) (116,388)
Net profit available for common stock W 4,486,015 3,902,866
Weighted average number of common shares outstanding(*) 530,638,621 534,049,948
Basic and diluted earnings per share in won W 8,454 7,308

(*) The number of basic ordinary shares outstanding is 508,784,869 shares and the above weighted-average stocks
are calculated by reflecting treasury stocks issued and 17,482,000 shares of convertible preferred shares issued on
May 1, 2019.
(b) The calculation details of the weighted average number of ordinary shares for the years ended December 31, 2022
December 31, 2022

Number of shares Number of days
Number of common shares issued 508,784,869 187,476,994,819
Shares of convertible preferred stock 17,482,000 6,380,930,000
Shares of treasury stock (6,352) (174,828,329)
Average number of ordinary shares 526,260,517 193,683,096,490
Days 365 days
Weighted average number of ordinary shares 530,638,621
December 31, 2021

Number of shares Number of days
Number of common shares issued 516,599,554 188,558,837,210
Shares of convertible preferred stock 17,482,000 6,380,930,000
Shares of treasury stock (6,352) (11,536,338)
Average number of ordinary shares 534,075,202 194,928,230,872
Days 365 days
Weighted average number of ordinary shares 534,049,948
264
43. Commitments and contingencies
(a) Guarantees, acceptances and credit commitments as of December 31, 2022 and 2021 are as follows:

Guarantees and purchase agreements:
Outstanding guarantees W 12,154,088 10,540,968
Contingent guarantees 4,565,829 4,670,771
ABS and ABCP purchase agreements 1,496,604 1,525,768
18,216,521 16,737,507
Commitments to extend credit:
Loan commitments in won 83,231,840 81,707,963
Loan commitments in foreign currency 25,052,284 19,807,686
Other agreements (*) 96,971,153 92,338,217
205,255,277 193,853,866
Endorsed bills:
Secured endorsed bills 10,025 8,199
Unsecured endorsed bills 7,046,806 7,683,165
7,056,831 7,691,364
W 230,528,629 218,282,737
(*) Unused credit commitments provided to the card customers are included, the amounts are W 90,452,012 million
for the year ended December 31, 2022 and W 86,979,545 million for the year ended December 31, 2021.
265
43. Commitments and contingencies (continued)
(b) Pending litigations
The Group’s pending lawsuits as a defendant as of December 31, 2022 are as follows:
Number Claim
Case of claim amount Description Status
The Plaintiff believes that the group of lenders The first trial is
including the Group unfairly sold two oil drilling ongoing as of
vessels that are the core assets for borrowers and December 31, 2022.
Return of unjust
1 W 33,096 it caused losses to other bankrupt creditors of the
earning
borrower. Therefore, the Plaintiff filed a lawsuit
for damages.
Joint Tort liability and Vicarious liability The first trial is

Loss claim 1 64,748 ongoing as of
December 31, 2022.
Joint Tort liability and Vicarious liability The first trial is
Loss claim 1 36,436 ongoing as of
December 31, 2022.
Hwaseong Bansong- The plaintiffs, as contractors, claimed unpaid The first trial is
dong Construction construction costs. ongoing as of
Payment Litigation 1 25,507 December 31, 2022.
(Hyosung Heavy
Industries, etc. 1)
Others 588 370,892 It includes various cases, such as compensation for loss claim.
592 W 530,679
As of the December 31, 2022, the Group has recorded W 29,238 million and W 3,991 million, respectively, as
provisions and insurance contract liabilities (reserve for claims) for litigations, etc., which have been decided to lose
at the first trial. The outcome of the remaining litigations other than those accounted for provisions, etc. are not
expected to have a material impact on the consolidated financial statements, but additional losses may result from
future litigation.
266
43. Commitments and contingencies (continued)
(c) As a Prime Brokerage Service operator, the Group entered into a total return swap agreement (“TRS”, derivatives
that exchange profits and losses from underlying assets such as stocks, bonds and funds) with a fund operated by
Lime Asset Management ("Lime Fund"). Through TRS with the Group, the Lime Fund invested approximately $200
million in IIG Global Trade Finance Fund, IIG Trade Finance Fund, and IIG Trade Finance Fund-FX Hedge ("IIG
Fund") from May 2017 to September 2017. The Group invested the IIG Fund in LAM Enhanced Finance III L.P
("LAM III Fund") in kind and acquired the LAM III Fund's beneficiary certificates in accordance with the
management instructions of Lime Asset Management in 2019. The recoverable value of the LAM III Fund
beneficiary certificates is affected by the recoverable value of the IIG Fund invested in kind.
Meanwhile, IIG Fund received cancellation of registration and asset freeze from the US Securities and Exchange
Commission in November 2019. The Financial Supervisory Service (FSS) announced in its interim inspection of
Lime Fund in February 2020 that the Group is charged of being involved in poor concealment and fraud of Lime
Fund while operating TRSs with Lime Fund, and a related prosecution investigation has been under way since then.
Institutional sanctions (banned from the sale of new private equity funds and etc. for six months) against the Group
was finalized by the Financial Services Commission on November 12, 2021.
In addition, the prosecution arrested and indicted the former director of Prime Brokerage Services for fraud charges
and violation of the Capital Market and Financial Investment Services Act. Finally, the former director of Prime
Brokerage Services was found guilty.
The prosecution indicted the Group and the former director of Prime Brokerage Services on January 22, 2021 for
violating ‘Financial Investment Services and Capital Markets Act’. It is expected that the criminal trial will determine
whether the Group is legally responsible or not. The Group has determined the present obligation that the Group may
be liable for the charge of involvement in the fraud is not significant.
Considering the board resolutions and the results of the Financial Supervisory Service's dispute settlement committee,
the Group has been completed or will be carried out the compensation and liquidity supply for some of the Lime Fund
sales in the future.
(d) The Group has sold Gen2 related trust instruments from May 2014 to November 2019. As of December 31, 2022,
approximately W420 billion, the entire outstanding balance, is suspended from redemption and delayed in repayment.
In accordance with a resolution of the Board of Directors on September 28, 2021, the Group has decided to pay 40%
of the investment principal to the customers who have agreed to the suspension of redemption and settle the amount
upon investment recovery.
(e) The Group is responsible for the completion of construction when the contractor fails to fulfill its responsibilities.
In case the Group fails to fulfill its responsibility, it is in the process of a responsible-for-completion land trust project
(154 cases other than the new residential and commercial apartment project in Jongno-gu, Seoul (excluding completed
workplaces)) to compensate for damages incurred to the financial institutions, and for the period ended December 31,
2022, the total PF loans amounted to W 5,194.9 billion. The amount of claim for damages of the Group is determined
after identifying whether it is a damage caused by the Group’s failure to fulfill its responsibilities. As of December 31,
2022, the risk of the Group to bear the responsibility to complete the project is low, and the loss cannot be reliably
measured, hence this was not reflected in the financial statements for the period ended December 31, 2022. Meanwhile,
the process of each business sites will be continuously monitored.
267
44. Statement of cash flows
(a) Cash and cash equivalents in the consolidated statements of cash flows as of December 31, 2022 and 2021 are as
follows:
Cash and due from banks at amortized cost W 29,551,335 28,471,127
Adjustments:
Due from financial institutions with a maturity over three months from
date of acquisition (1,886,179) (1,490,600)
Restricted due from banks (3,663,731) (2,877,084)
(5,549,910) (4,367,684)
W 24,001,425 24,103,443
(b) Significant non-cash activities for the years ended December 31, 2022 and 2021 are as follows:
Investment conversion W - 32,239
Transfers from construction-in-progress to property and equipment 33,983 18,748
Transfers between property and equipment and investment property 9,554 73,773
Transfers between assets held for sale and property and equipment 101,757 1,022
Transfers between investment property and assets held for sale 83,664 2,238
Accounts payable for purchase of intangible assets, etc. 117,743 137,058
Transaction for right-of-use assets 293,590 289,995
268
44. Statement of cash flows (continued)
(c) Changes in assets and liabilities arising from financing activities for the years ended December 31, 2022 and 2021
are as follows:
December 31, 2022
Financial
Net Debt liabilities
Derivative securities Lease designated
liabilities Borrowings issued liabilities at FVTPL Total
Beginning balance W (81,407) 43,167,065 80,149,363 612,690 - 123,847,711
Changes from cash
flows 71,629 6,145,271 (2,255,974) (259,913) 49,993 3,751,006
Changes from
non-cash flows
Amortization of
discount on
borrowings and
debentures - (94,209) 45,713 13,379 - (35,117)
Changes in
foreign currency - 294,867 58,406 19,032 - 372,305
Other 541,712 (233,819) (708,725) 237,049 (2,666) (166,449)
Business
combination
(Note 47) - - - 1,102 - 1,102
Ending balance W 531,934 49,279,175 77,288,783 623,339 47,327 127,770,558
December 31, 2021

Net Debt
Derivative securities Lease
liabilities Borrowings issued liabilities Total
Beginning balance W (88,784) 41,594,064 75,134,394 594,161 117,233,835
Changes from cash flows 12,667 849,212 4,417,830 (275,273) 5,004,436
Changes from non-cash flows
Amortization of discount on
borrowings and debentures - (71,390) 9,257 10,873 (51,260)
Changes in foreign currency - 193,892 779,919 16,235 990,046
Other (5,290) 601,287 (192,037) 266,694 670,654
Ending balance W (81,407) 43,167,065 80,149,363 612,690 123,847,711
269
45. Related parties
Intra-group balances, and income and expenses arising from intra-group transactions are eliminated in preparing the
consolidated financial statements. In accordance with K-IFRS No. 1024, the Group defines the retirement benefit
plans of the associates, key management and their families, the consolidation group and related parties as the scope
of related parties. The amount of profit and loss, bond and debt balance between the Group and the related parties
are disclosed. For details of the subsidiaries and associates, refer to 'Note 15'.
(a) Balances with the related parties as of December 31, 2022 and 2021 are as follows:

Related party Account
2022 2021
BNP Paribas Cardif Life Insurance Other assets W 38 61
〃 Credit card loans 117 87
〃 Deposits 18,745 14,870
Unused credit commitments 1 -
Partners 4th Growth Investment Fund Deposits 742 10,096
Shinhan EZ General Insurance, Ltd. (*2) Credit card loans - 24
〃 ACL - (2)
〃 Other provisions - 4
〃 Deposits - 1,455
Dream High Fund Ⅲ (*1) Deposits - 4
Midas Dong-A Snowball Venture Fund 2 Deposits - 350
Incorporated association Finance Saving Information
Center Deposits 2 16
Nomura-Rifa Private Real Estate Investment Trust
No.19 Loans 11,880 11,880
〃 Other assets 44 -
SH MAIN Professional Investment Type Private Mixed
Asset Investment Trust No.3 Other assets 427 345
Korea Finance Security Deposits 415 457
SHINHAN-CORE TREND GLOBAL FUND 1 (*1) Unearned revenue - 17
Hermes Private Investment Equity Fund Deposits 218 246
Korea Credit Bureau Deposits 721 1,394
Goduck Gangil1 PFV Co., Ltd Loans 6,825 12,000
〃 ACL (20) (52)
〃 Deposits 3 -
SBC PFV Co., Ltd Deposits 21,163 33,278
Sprott Global Renewable Private Equity Fund I Deposits 100 176
IMM Global Private Equity Fund Loans 800 800
〃 ACL (3) (3)
〃 Deposits 14,824 21,543
Goduck Gangil10 PFV Co., Ltd Loans 3,100 7,600
〃 ACL (9) (24)
〃 Deposits 26,880 72,740
Shinhan Global Healthcare Fund 2 Deposits 1 1
One Shinhan Global Fund 1 Unearned revenue - 104
IMM Special Situation 1-2 PRIVATE EQUITY FUND Deposits 151 23
EDNCENTRAL Co.,Ltd. Loans - 19,739
〃 Accrued income - 9
〃 Deposits - 1
〃 Unearned revenue - 40
Future-Creation Neoplux Venture Capital Fund Account receivables 3,949 3,919
Neoplux Market-Frontier Secondary Fund Account receivables 904 954
Gyeonggi-Neoplux Superman Fund Account receivables 623 620
Shinhan-Neoplux Energy Newbiz Fund Account receivables 978 1,002
270
45. Related parties (continued)
(a) Balances with the related parties as of December 31, 2022 and 2021 are as follows (continued):

Related party Account 2022 2021
Investments in associates (continued):
SHINHAN-NEO Core Industrial Technology
W
Fund Account receivables 124 -
KTC-NP Growth Champ 2011-2 Private Equity
Fund Account receivables 2,675 4,512
Neoplux No.3 Private Equity Fund Account receivables 3,190 662
NV Station Private Equity Fund Deposits 21 41
Korea Digital Asset Custody Deposits 153 526
SW-S Fund Deposits 112 115
Shinhan Smilegate Global PEF I Unearned revenue 9 49
WaveTechnology co.Ltd Deposits 41 99
SHINHAN-NEO Market-Frontier 2nd Fund Account receivables 513 513
iPIXEL Co.,Ltd. Loans - 55
〃 Deposits 225 651
CJL No.1 Private Equity Fund Deposits 603 779
NewWave 6th Fund Account receivables 849 -
Nova New Technology Investment Fund No.1 Deposits 215 357
DS Power Semicon Private Equity Fund Deposits 100 -
Genesis No.1 Private Equity Fund Deposits 19 -
DDI LVC Master Real Estate Investment Trust Co., Ltd. Deposits 59 -
Newlake Growth Capital Partners2 PEF Deposits 353 -
Logisvalley Shinhan REIT Co.,Ltd. Loans 43,000 -
〃 ACL (28) -
〃 Account receivables 81 -
〃 Deposits 1,421 -
Shinhan-Albatross tech investment Fund Deposits 3,402 -
Shinhan Global Active REIT Co.Ltd Deposits 393 -
Shinhan VC tomorrow venture fund 1 Account receivables 850 -
SH Sustainable Management ESG Short term Bond
Security Feeder Investment Trust No.1 Accrued income 1 -
SH Global Net Zero Solution Security Investment Trust Accrued income 2 -
SEOKWANG T&I Deposits 1 -
Shinhan Time 1st Investment fund Deposits 238 -
DeepBlue No.1 Private Equity Fund Deposits 400 -
Key management personnel
and their immediate relatives: Loans 6,561 6,149
Assets 87,471 70,850
Liabilities W 91,731 159,432
(*1) Excluded from the associates due to disposal and liquidation for the year ended December 31, 2022.
due to increased equity ratio and BNP Paribas Cardif General Insurance, Ltd. has changed its name to Shinhan
EZ General Insurance, Ltd.
271
(b) Transactions with the related parties for the years ended December 31, 2022 and 2021 are as follows:

Investments in associates
BNP Paribas Cardif Life Insurance Fees and commission income W 1,890 3,023
〃 Interest expense (52) (13)
〃 General and administrative expenses (1) (2)
Equity Fund Fees and commission income 42 323
Shinhan EZ General Insurance, Ltd. (*3) Fees and commission income 2 10
〃 Reversal for credit loss 5 6
SM New Technology Business
Investment Fund I (*1) Fees and commission income - 187
Partners 4th Growth Investment Fund Interest expense (12) (11)
Shinhan-Albatross Technology
Investment Fund Fees and commission income 146 129
Shinhan-Midas Dong-A Secondary Fund Fees and commission income 121 115
Shinhan-Nvestor Liquidity Solution Fund Fees and commission income 181 271
Shinhan-PS Investment Fund No.1 Fees and commission income 15 20
Investment Trust No.19 Interest income 522 530
Private Mixed Asset Investment Trust
No.3 Fees and commission income 1,550 974
KOREA FINANCE SECURITY Fees and commission income 6 8
〃 Interest expense - (1)
Investment Fund Fees and commission income 140 1,028
Shinhan-Rhinos 1 Fund (*2) Fees and commission income 61 47
SHINHAN-CORE TREND GLOBAL
FUND1 (*2) Fees and commission income - 106
Kiwoom-Shinhan Innovation Fund I Fees and commission income 118 240
One Shinhan Global Fund1 Fees and commission income 104 208
Open-Shinhan Portfolio Investment
Association No. 1 Fees and commission income - 59
Fund 1 Fees and commission income 227 241
Korea Credit Bureau Fees and commission income 13 14
〃 Interest expense - (9)
Goduck Gangil1 PFV Co., Ltd Interest income 377 754
〃 Reversal for credit loss 31 20
SBC PFV Co., Ltd Fees and commission income 808 776
IMM Global Private Equity Fund Interest income 29 23
〃 Provision for credit loss - (1)
272
(b) Transactions with the related parties for the years ended December 31, 2022 and 2021 are as follows (continued):

Investments in associates (continued)
Goduck Gangil10 PFV Co., Ltd Interest income W 171 283
〃 Provision for credit loss 14 (4)
COSPEC BIM tech (*1) Interest income - 41
〃 Provision(reversal) for credit loss - 95
Korea Omega Project Fund I Fees and commission income 180 180
New Green Shinhan Mezzanine Fund(*1) Fees and commission income - 334
Sparklabs-Shinhan Opportunity Fund 1 Fees and commission income 202 202
EDNCENTRAL Co.,Ltd. Interest income 267 1,140
〃 Fees and commission income 3,212 714
Kakao-Shinhan 1st TNYT Fund Fees and commission income 386 386
KoFC-Neoplux R&D-Biz Creation 2013-
1 Investment (*1) Interest income - 1
〃 Fees and commission income - 5,474
Fund Interest income 74 31
〃 Fees and commission income 53 308
Fund Fees and commission income 904 954
Gyeonggi-Neoplux Superman Fund Fees and commission income 623 621
Shinhan-Neoplux Energy Newbiz Fund Fees and commission income 978 1,002
NewWave 6th Fund Fees and commission income 1,014 1,210
Technology Fund Fees and commission income 498 498
Equity Fund Interest income 59 26
Neoplux No.3 Private Equity Fund Fees and commission income 3,190 2,433
Private Placement Real Estate
Investment Company No.45 (*2) Fees and commission income - 83
Shinhan Smilegate Global PEF I Fees and commission income 49 189
Fund Fees and commission income 2,050 2,026
Korea Digital Asset Custody Interest expense - (2)
SWK-Shinhan New Technology
Investment Fund 1st Fees and commission income 76 41
Ulmus SHC innovation investment fund Fees and commission income 94 63
iPIXEL Co.,Ltd. Interest income 1 2
CJL No.1 Private Equity Fund Interest expense (7) (2)
Reverent-Shinhan Vista Fund Fees and commission income 40 90
Hermes Private Investment Equity Fund Interest expense - (1)
Kiwoom-Shinhan Innovation Fund 2 Fees and commission income 279 115
ETRI Holdings-Shinhan 1st Unicorn Fund Fees and commission income 100 32
Shinhan-Time mezzanine blind Fund Fees and commission income 107 300
Shinhan VC tomorrow venture fund 1 Fees and commission income 3,400 419
JS Shinhan Private Equity Fund Fees and commission income 587 250
Fund Fees and commission income 591 -
Shinhan-Kunicorn first Fund Fees and commission income 261 -
273
(b) Transactions with the related parties for the years ended December 31, 2022 and 2021 are as follows (continued):
Related party Account December 31, 2022 December 31, 2021

Investments in associates (continued)
Shinhan-Quantum Startup Fund Fees and commission income W 125 -
Shinhan Simone Fund Ⅰ Fees and commission income 78 -
Investment Association Fees and commission income 59 -
Trust Co., Ltd. Interest expense (1) -
Logisvalley Shinhan REIT Co.,Ltd. Interest income 1,018 -
〃 Fees and commission income 458 -
〃 Interest expense (1) -
〃 Provision(reversal) for credit loss (28) -
Shinhan-Albatross tech investment Fund Interest expense (7) -
Shinhan-Dev healthcare Fund I Fees and commission income 66 -
Shinhan-Cognitive Start-up Fund L.P. Fees and commission income 192 -
Global Commerce Fund Fees and commission income 10 -
Shinhan-HGI Social Enterprise Fund Fees and commission income 27 -
Shinhan-WWG Energy Fund New
Technology Venture Investment Fund Fees and commission income 22 -
IGIS-Shinhan New Technology Fund 1 Fees and commission income 36 -
Shinhan-G.N.Tech Smart Innovation Fund Fees and commission income 81 -
term Bond Security Feeder Investment
Trust No.1 Fees and commission income 6 -
SH Global Net Zero Solution Security
Investment Trust Fees and commission income 82 -
Newlake Growth Capital Partners2 PEF Interest expense (1) -
Shinhan Global Active REIT Co.Ltd Interest expense (1) -
DeepBlue No.1 Private Equity Fund Interest expense (2) -
DS SHINHAN Content Investment Fund 1 Fees and commission income 18 -
Shinhan Time 1st Investment fund Fees and commission income 4 -
SHINHAN SGC ESG Fund No.1 Fees and commission income 5 -
Shinhan-Sneak Peek Bio&Healthcare
Bounce Back Fund Fees and commission income 4 -
Shinhan-iSquare Venture Fund 1st Fees and commission income 3 -
Key management personnel and their immediate relatives
Interest income 205 122
W 27,198 28,589
(*1) Excluded from the associates due to disposal and liquidation for the year ended December 31, 2021
(*2) Excluded from the associates due to disposal and liquidation for the year ended December 31, 2022.
EZ General Insurance, Ltd. The transaction amount for the years ended December 31, 2022 and 2021 is the
amount before being incorporated into the consolidation target.
274
(c) Key management personnel compensation
Key management personnel compensation for the years ended December 31, 2022 and 2021 are as follows:

2022 2021
Short-term employee benefits W 27,591 23,972
Severance benefits 817 686
Share-based payment transactions(*) 9,777 13,886
W 38,185 38,544
(*) The expenses of share-based payment transactions are the renumeration expenses during the vesting period.
(d) The guarantees and purchase agreement provided between the related parties as of December 31, 2022 and
Amount of guarantees
Guarantor Guaranteed Parties 2022 2021 Account
Shinhan Bank BNP Paribas Cardif Life Insurance W 10,000 10,000 Unused loan limit
〃 Key Management Personnel 2,143 1,607 Unused loan limit
Shinhan Card BNP Paribas Cardif Life Insurance 883 913 Unused credit line
Shinhan EZ General Insurance,
〃 Ltd.(*) -
226 Unused credit line
The Group Structured entities 296,118 207,078 Purchase agreement
W 309,144 219,824
(*) For the year ended December 31, 2022, it is incorporated into the consolidation target as the Group held control
EZ General Insurance, Ltd.
(e) Details of collaterals provided by the related parties as of December 31, 2022 and 2021 are as follows:
Amount of assets pledged

Provided to Provided by Pledged assets 2022 2021
BNP Paribas Cardif Life Government
Insurance bonds W 12,400 12,000
Electronic credit
iPIXEL Co.,Ltd.
guarantee 190 190
Logisvalley Shinhan REIT
Collateral trust
Shinhan Bank Co.,Ltd. 51,600 -
Key Management Personnel Properties 8,073 10,012
〃 Deposits and etc.
1,306 2,011
〃 Guarantee
3,092 375
12,471 12,398
W 76,661 12,398
275
(f) Details of significant loan transactions with related parties as of December 31, 2022 and 2021 are as follows:
December 31, 2022

Classification Company Beginning Execution Collection Others(*) Ending
Nomura-Rifa Private
Real Estate Investment W
Trust No.19 11,880 - - - 11,880
EDNCENTRAL
Co.,Ltd. 19,739 - (20,000) 261 -
Goduck Gangil1 PFV
Investments Co., Ltd. 12,000 - (5,175) - 6,825
in associates Goduck Gangil10 PFV
Co., Ltd. 7,600 - (4,500) - 3,100
IMM Global Private
Equity Fund 800 - - - 800
iPIXEL Co.,Ltd. 55 - - (55) -
Logisvalley Shinhan
REIT Co.,Ltd. - 43,000 - - 43,000
Key Management Personnel 6,150 4,590 (4,177) - 6,563
Total W 58,224 47,590 (33,852) 206 72,168
(*) The effect on changes in allowance for credit loss is included.
December 31, 2021

Classification Company Beginning Execution Collection Others(*) Ending
Nomura-Rifa Private
Real Estate Investment W
Trust No.19 11,973 - - (93) 11,880
IGIS PRIVATE REAL
ESTATE TRUST
NO.331 9,688 - (9,769) 81 -
EDNCENTRAL
Investments Co.,Ltd. 19,381 - - 358 19,739
in associates Goduck Gangil1 PFV
Co., Ltd. 24,000 - (12,000) - 12,000
Goduck Gangil10 PFV
Co., Ltd. 9,400 600 (2,400) 7,600
IMM Global Private
Equity Fund 800 - - - 800
COSPEC BIM tech 151 - - (151) -
iPIXEL Co.,Ltd. - 71 - (16) 55
Key Management Personnel 5,146 5,315 (4,311) - 6,150
Total W 80,539 5,986 (28,480) 179 58,224
(*) The effect on changes in allowance for credit loss is included.
276
46. Interests in unconsolidated structured entities
(a) The nature and extent of interests in unconsolidated structured entities
The Group involved in assets-backed securitization, structured financing, beneficiary certificates (primarily
investment funds) and other structured entities and characteristics of these structured entities are as follows:
Description
Assets-backed Securitization vehicles are established to buy assets from originators and issue asset-
securitization backed securities in order to facilitate the originators’ funding activities and enhance
their financial soundness. The Group is involved in the securitization vehicles by
purchasing (or committing to purchase) the asset-backed securities issued and/or
providing other forms of credit enhancement.
The Group does not consolidate a securitization vehicle if (i) the Group is unable to
make or approve decisions as to the modification of the terms and conditions of the
securities issued by such vehicle or disposal of such vehicles’ assets, (ii) (even if the
Group is so able) if the Group does not have the exclusive or primary power to do
so, or (iii) if the Group does not have exposure, or right, to a significant amount of
variable returns from such entity due to the purchase (or commitment to purchase)
of asset-backed securities so issued or subordinated obligations or by providing
other forms of credit support.
Structured financing Structured entities for project financing are established to raise funds and invest in
a specific project such as M&A (mergers and acquisitions), BTL (build-transfer-
lease), shipping finance, etc. The Group is involved in the structured entities by
originating loans, investing in equity, or providing credit enhancement.
Investment fund Investment fund means an investment trust, a PEF (private equity fund) or a
partnership which invests in a group of assets such as stocks or bonds by issuing a
type of beneficiary certificates to raise funds from the general public, and distributes
its income and capital gains to their investors. The Group manages assets by
investing in shares of investment fund or playing a role of an operator or a GP
(general partner) of investment fund, on behalf of other investors.
The size of unconsolidated structured entities as of December 31, 2022 and 2021 are as follows:

Total assets:
Asset-backed securitization W 237,920,155 248,200,446
Structured financing 343,752,304 255,854,384
Investment fund 343,504,568 301,241,508
W 925,177,027 805,296,338
277
46. Interests in unconsolidated structured entities (continued)
(b) Nature of risks
i) The carrying values of the assets and liabilities relating to its interests in unconsolidated structured entities as of
December 31, 2022

Assets-backed Structured Investment
securitization financing fund Total
Assets under consolidated financial
statements:
Loans measured at fair value
through profit or loss W 9,269 693,630 498 703,397
Loan at amortized cost 869,478 15,725,255 183,263 16,777,996
profit or loss 2,475,307 250,470 13,767,837 16,493,614
Derivate assets 4,432 - - 4,432
through other
comprehensive income 1,832,987 179,714 - 2,012,701
Securities at amortized cost 6,894,241 - - 6,894,241
Other assets 4,337 44,448 5,608 54,393
W 12,090,051 16,893,517 13,957,206 42,940,774
Liabilities under consolidated
financial statements:
Derivate liabilities W 24,902 91 - 24,993
Other liabilities 788 18,840 101 19,729
W 25,690 18,931 101 44,722
December 31, 2021

Assets under consolidated financial
statements:
Loans measured at fair value
through profit or loss W 16,352 156,630 42,231 215,213
Loan at amortized cost 731,184 13,548,490 155,572 14,435,246
profit or loss 3,752,394 235,238 14,014,493 18,002,125
Derivate assets 4,343 16,560 - 20,903
other comprehensive income 2,510,057 215,237 - 2,725,294
Securities at amortized cost 6,493,106 - - 6,493,106
Other assets 138 17,280 177 17,595
W 13,507,574 14,189,435 14,212,473 41,909,482
Liabilities under consolidated
financial statements:
Derivate liabilities W 3,817 48 - 3,865
Other liabilities 103 21,683 - 21,786
W 3,920 21,731 - 25,651
278
46. Interests in unconsolidated structured entities (continued)
(b) Nature of risks (continued)
ii) The maximum risk exposure of the Group relating to its interests in unconsolidated structured entities as of
December 31, 2022

Assets held W 12,090,051 16,893,517 13,957,206 42,940,774
ABS and ABCP
purchase agreements 1,014,702 104,773 2,257,564 3,377,039
Loan commitments 419,039 988,331 - 1,407,370
Guarantees 15,000 80,000 - 95,000
Others - 103,039 - 103,039
W 13,538,792 18,169,660 16,214,770 47,923,222
December 31, 2021

Assets held W 13,507,574 14,189,435 14,212,473 41,909,482
ABS and ABCP
purchase agreements 895,273 2,210 2,703,353 3,600,836
Loan commitments 439,843 984,082 6,900 1,430,825
Guarantees 21,200 105,550 - 126,750
Others - 150,579 - 150,579
W 14,863,890 15,431,856 16,922,726 47,218,472
279
47. Business combination
(a) Shinhan EZ General Insurance, Ltd.
i) General information
On June 30, 2022, the Group obtained control by acquiring 94.54% (The acquisition price of W 41 billion) of the total
issued shares of Shinhan EZ General Insurance, Ltd. (formerly, BNP Paribas Cardif General Life Insurance Ltd.) after
the Financial Services Commission approved the incorporation of subsidiary on June 9, 2022. The main reason for
business combination is to secure new business opportunities in the insurance finance area and to achieve synergy
between existing businesses.
ii) Identifiable net assets
Fair values of assets acquired and liabilities assumed as of acquisition date are as follows:
Amount(*1)
Assets:
Cash and due from banks at amortized cost W 79,723
Securities at fair value through profit or loss 5,977
Securities at fair value through other comprehensive income 24,805
Loans at amortized cost(*2) 98
Property and equipment 1,938
Intangible assets 4,425
Other assets 36,980
153,946
Liabilities:
Liabilities under insurance contracts(*3) 71,406
Other liabilities 26,824
98,230
Fair value of the identifiable net assets W 55,716
(*1) The accounting for the acquisition of Shinhan EZ General Insurance, Ltd. was determined using the identifiable
assets and liabilities recognized by Shinhan EZ General Insurance, Ltd. at the time of business combination.
(*2) During the business combination, the Group acquired receivables that were fair value of W 98 million, and the
total contract amount was W 98 million. There is no contractual cash flow that is not expected to be recovered from
the receivables.
(*3) VOBA (Value Of Business Acquired) measured separately was adjusted by applying the direct method based
on the actuarial appraisal value model to the carrying amount of the acquired company's insurance contract liabilities.
280
47. Business combination (continued)
(a) Shinhan EZ General Insurance, Ltd. (continued)
iii) Gain from bargain purchase
Gain from bargain purchase recognized as a result of business combination is as follows:

Amount
Transfer cost(*) W 43,367
Fair value of the identifiable net assets 55,716
Gain from bargain purchase W (12,349)
(*) Includes the 5.46% shares Shinhan Life Insurance Co., Ltd. held.
iv) Expenses related to business combination
The expenses in connection with the business combination amounts to W 1,259 million, including legal fees and due
diligence fees, and the fee was recognized as a fee and commission expense in the consolidated comprehensive income.
v) Net cash outflows from business combination
Amount
Consideration paid in cash W 41,000
Cash and cash equivalent acquired 13,869
Net cash outflows W 27,131
vi) If Shinhan EZ Insurance had been consolidated from the beginning of the current year, the operating loss and net
loss of Shinhan EZ Insurance, which would have been recorded in the consolidated statement of comprehensive income,
are W 15,242 million and W 15,030 million, respectively.
(b) The merger of Shinhan Asset Management Co., Ltd. and Shinhan Alternative Investment Management Inc.
Shinhan Asset Management Co., Ltd. and Shinhan Alternative Investment Management Inc. have merged on January
5, 2022 to form a holding company named Shinhan Asset Management Co., Ltd. As a result of the merger, the
common shareholders as of immediately prior to the merger of Shinhan Alternative Investment Management Inc.
(the merged company) are entitled to receive 0.4430946 share of Shinhan Asset Management Co., Ltd. (the surviving
company)’s common share (W 5,000 per share) per common share of Shinhan Alternative Investment Management
Inc. There is no further transfer of any such shares except in accordance with the exchange ratio agreed upon by both
parties under the merger agreement addressed above.
281
48. Events after the reporting period
(a) Decided to acquire and retire treasury stock
The controlling company decided to acquire and retire treasury stocks that worth W 150 billion through a resolution
of the Board of Directors on February 8, 2023, in order to enhance shareholder value.
282
49. Uncertainty due to changes in domestic and global economic conditions
Increased internal and external economic uncertainty, such as inflation and rising market interest rates, and the prolonged COVID-19 are negatively affecting the global economy. The
Group uses forward-looking information to estimate expected credit losses in accordance with K-IFRS No.1109 ‘Financial Instruments’ and there have been changes in forward-
looking information due to the increase in future uncertainty. Accordingly, the probability of default rate for the year ended December 31, 2022 is re-estimated using changed forward-
looking information on major variables such as GDP growth rate, consumer price fluctuation rate and unemployment rate to compute the probability of default rate. The Group will
continue to monitor internal and external economic uncertainties and the impact of the COVID-19 on the economy.
Risk exposures by major consolidated subsidiaries due to COVID-19 are as follows, figures may significantly vary for industries that are highly affected by future economic
conditions:
(a) Shinhan Bank
December 31, 2022

Airlift Oil/petroleum Movie Clothing
passenger Lodging refinery Art-related theater manufacturing Travel Total
Loans at amortized cost W 154,076 3,281,340 1,217,228 209,652 76,982 2,160,803 56,719 7,156,800
comprehensive income 123,875 18,416 211,000 - - 14,776 - 368,067
Securities at amortized cost 59,997 - - - - - - 59,997
Off-balance accounts 435,399 254,076 2,731,899 8,500 76,817 1,162,054 36,784 4,705,529
W 773,347 3,553,832 4,160,127 218,152 153,799 3,337,633 93,503 12,290,393
December 31, 2021

Airlift Oil/petroleum Movie Clothing
passenger Lodging refinery Art-related theater manufacturing Travel Total
Loans at amortized cost W 164,904 3,314,684 937,385 219,859 86,241 2,082,545 92,152 6,897,770
profit or loss - - 29,911 - - - 2,737 32,648
comprehensive income 114,158 18,142 264,343 - 7,123 10,678 - 414,444
Off-balance accounts 364,351 323,638 2,650,311 20,196 91,622 982,026 37,941 4,470,085
W 643,413 3,656,464 3,881,950 240,055 184,986 3,075,249 132,830 11,814,947
283
49. Uncertainty due to changes in domestic and global economic conditions (continued)
conditions (continued):
(b) Shinhan Card Co., Ltd.
December 31, 2022

Retails
Credit sales Short term card loan Long term card loan Total
Loans at amortized cost W 439,882 187,652 424,445 1,051,979
Total Exposure 870,572 - 870,572
December 31, 2021

Retails
Credit sales Short term card loan Long term card loan Total
Loans at amortized cost W 371,197 152,838 387,318 911,353
Total Exposure 814,598 - 814,598
284
conditions (continued):
(c) Jeju Bank
December 31, 2022

Leisure Youth
related training
Airlift Movie service Bus Bath facilities
passenger Lodging Art-related theater industry business business business Total
Loans at amortized cost W - 303,118 4,752 226 11,299 8,152 9,064 5,438 342,049
Off-balance accounts 1 6,107 173 4 841 384 339 4 7,853
W 1 309,225 4,925 230 12,140 8,536 9,403 5,442 349,902
December 31, 2021

Leisure Youth
related training
Airlift Movie service Bus Bath facilities
passenger Lodging Art-related theater industry business business business Total
Loans at amortized cost W - 295,664 4,161 596 25,432 7,535 17,089 5,466 355,943
Off-balance accounts 4 5,439 161 4 991 197 538 6 7,340
W 4 301,103 4,322 600 26,423 7,732 17,627 5,472 363,283
285
As of December 31, 2022 and 2021, the exposure of the loans applied for moratorium of interest payments and moratorium of repayment in installments is as follows:
(a) Shinhan Bank

Moratorium of interest payments W 165,442 224,449
Moratorium of repayment in installments 1,105,481 1,342,366
Moratorium of interest payments and
moratorium of repayment in installments 66,218 65,773
W 1,337,141 1,632,588
(b) Jeju Bank

Moratorium of interest payments W - 348
Moratorium of repayment in installments 351,129 276,193
W 351,129 276,541
286
50. LIBOR Interest rates
The effective interest rate, not the carrying value, is adjusted when replacing the interest rate index of a financial instrument measured at amortized cost in relation to the reform of the interest rate index.
It includes exceptions, such as allowing hedge accounting to continue uninterrupted even if an interest rate indicator replacement occurs in a hedging relationship. Regarding the suspension of LIBOR
interest rate calculation, the financial instruments that have not been converted to replaced interest rate benchmark among the LIBOR interest rates as of December 31, 2022 and December 31, 2021 are
as follows:
(a) Non-derivative financial assets

December 31, 2022
Carrying Value
USD LIBOR(*2) JPY LIBOR EUR LIBOR Other LIBORs
Due from banks and loans at amortized cost:
Loans W 2,511,050 - - -
Financial assets at fair value through profit or loss:

Corporate bonds and others 253,126 - - -
Securities at fair value through other comprehensive income:

Financial institution bonds 189,047 - - -
418,077 - - -
Commitments and financial guarantee contracts(*1) W 217,839 - - -

(*1) The commitments and guarantee contracts are in nominal amount.
(*2) The instruments that will be matured before the end of June 30, 2023 when USD LIBOR interest rate calculation is discontinued are excluded.
December 31, 2021
Carrying Value
USD LIBOR(*2) JPY LIBOR EUR LIBOR Other LIBORs
Due from banks and loans at amortized cost:
Loans W 2,768,972 207,660 49,642 122,104
Securities at fair value through other comprehensive income:

Financial institution bonds 167,167 - - -
449,116 - - -
Commitments and guarantee contracts(*1) W 280,224 39,148 56,552 13,853
(*1) The commitments and guarantee contracts are in nominal amount.
(*2) The instruments that will be matured before the end of June 30, 2023 when USD LIBOR interest rate calculation is discontinued are excluded.
287
50. LIBOR Interest rates (continued)
(b) Non-derivative financial liabilities

December 31, 2022
Carrying Value
USD LIBOR(*) JPY LIBOR EUR LIBOR Other LIBORs
Financial liabilities at amortized cost:
Deposits W 200,000 - - -
Borrowings 50,692 - - -
Debt securities issued 1,355,525 - - -
W 1,606,217 - - -
Derivatives-combined securities W 15,000 - - -
(*) The instruments that will be matured before the end of June 30, 2023 when USD LIBOR interest rate calculation is discontinued are excluded.
December 31, 2021

Carrying Value
Financial liabilities at amortized cost:
Deposits W 200,000 - - -
Borrowings 347,420 - - -
Debt securities issued 986,871 - - -
W 1,534,291 - - -
288
50. LIBOR Interest rates (continued)
(c) Derivatives
December 31, 2022
Notional amount
Trading:
Interest rates related W 11,488,018 - - -
Foreign currency related 11,718,419 - - -
Equity related 183,779 - - -
Credit related 2,370 - - -
Others 405,536 - - -
23,798,122 - - -
Hedge:
Interest rates related 4,196,714 - - -
Foreign currency related 258,529 - - -
W 4,455,243 - - -
December 31, 2021

Notional amount
Trading:
Interest rates related W 10,772,390 - - -
Foreign currency related 10,900,844 - - -
Equity related 268,243 - - -
Credit related 1,108 - - -
Others 379,360 - - -
22,321,945 - - -
Hedge:
Interest rates related 4,150,155 - - -
Foreign currency related 278,705 - - -
W 4,428,860 - - -
289

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SHINHAN FINANCIAL GROUP CO., LTD.

Consolidated Financial Statements

(With Independent Auditor’s Report Thereon)

Independent Auditor’s Report 1

Consolidated Statements of Financial Position 5

Consolidated Statements of Comprehensive Income 7

Consolidated Statements of Changes in Equity 9

Consolidated Statements of Cash Flows 11

Notes to the Consolidated Financial Statements 14

(English Translation of a Report Originally Issued in Korean)

Basis for Opinion

Key Audit Matters

1. Expected Credit Losses on Loans Measured at Amortized Cost

How our audit addressed the key audit matter:

(2) Assessment of expected credit losses on a collective basis

2. Valuation of Over-The-Counter Derivatives Classified as Level 3 Subject to Internal Valuation Models

Why it is determined to be a key audit matter :

How our audit addressed the key audit matter :

Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements

/s/ Samil PricewaterhouseCoopers

(In millions of won) Note 2022 2021

Total assets W 675,884,281 648,152,185

(In millions of won) Note 2022 2021

Total liabilities 624,753,859 598,613,763

Total liabilities and equity W 675,884,281 648,152,185

See accompanying notes to the consolidated financial statements.

(In millions of won) Note 2022 2021

Fees and commission income 4,110,576 4,139,885

Insurance income 6,890,905 6,484,523

Dividend income 33 142,529 124,531

Operating income 5,888,079 5,952,096

Equity method income 15 121,697 158,600

Income tax expense 41 1,617,088 1,471,036

Other comprehensive income for the year, net of

Total comprehensive income for the year W 2,134,131 3,494,839

Profit attributable to:

Earnings per share: 29, 42

See accompanying notes to the consolidated financial statements.

Other changes in equity

See accompanying notes to the consolidated financial statements.

Other changes in equity

See accompanying notes to the consolidated financial statements

(In millions of won) Note 2022 2021

Cash flows from operating activities

Changes in assets and liabilities:

(In millions of won) Note 2022 2021

Deposits W 18,309,172 36,948,828

Income taxes paid (1,693,408) (1,149,965)

Net cash inflow from operating activities 7,592,560 4,199,954

Cash flows from investing activities

(In millions of won) Note 2022 2021

Cash flows from financing activities

Cash and cash equivalents at beginning of year 44 24,103,443 26,859,400

Cash and cash equivalents at end of year 44 W 24,001,425 24,103,443

See accompanying notes to the consolidated financial statements.

(a) Controlling company

1. Reporting entity (continued)

Date of Ownership (%)

1. Reporting entity (continued)