SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

FORM 6-K

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

SHINHAN FINANCIAL GROUP CO., LTD.

(Translation of registrant’s name into English)

120, 2-Ga, Taepyung-Ro, Jung-Gu, Seoul 100-102, Korea
(Address of principal executive offices)

Indicate by check mark whether the registrant files or will
file annual reports under cover of Form 20-F or Form 40-F.

Form 20-F þ Form 40-F o

Indicate by check mark if the registrant is submitting the Form 6-K in
paper as permitted by Regulation S-T Rule 101(b)(1):                     

Indicate by check mark if the registrant is submitting the Form 6-K in
paper as permitted by Regulation S-T Rule 101(b)(7):                     

Indicate by check mark whether the registrant by furnishing the

information contained in this form is also thereby furnishing the
information to the Commission pursuant to Rule 12g3-2(b) under the
Securities Exchange Act of 1934.

Yes o No þ

If “Yes” is marked, indicate below the file number assigned to the
registrant in connection with Rule 12g3-2(b): 82-                    .

 

 

Summary of 2005 Annual Report

On March 31, 2006, Shinhan Financial Group (“SFG”) filed the 2005 annual business report (the “Business Report”) with the Financial Supervisory Service of the Republic of Korea (“Korea”) pursuant to the Securities and Exchange Act of Korea. This is the summary of the Business Report translated into English. Non-material or previously disclosed information are omitted or abridged.

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

Table of Contents

1. Introduction of the Group
2. Business Results
3. Independent Accountant
4. Directors, Executive Officers and Employees
5. Activities of Board of Directors and Sub-committees
6. Market Price Information of Our Common Shares and ADRs
7. Related Party Transactions
EX-99.1 NON-CONSOLIDATED FINANCIAL STATEMENTS
EX-99.2 CONSOLIDATED FINANCIAL STATEMENTS

Exhibit 99-1 Independent Accountant’s Review Report (Non Consolidated Financial Statements)

Exhibit 99-2 Independent Accountant’s Review Report (Consolidated Financial Statements)

1. Introduction of the Group

Company History in 2005

	§		August 26, 2005
			BOD resolution to liquidate e-Shinhan
	§		August 29, 2005
			Acquisition of “Shinhan NPS Private Equity Fund 1” as the Group’s indirect subsidiary
	§		September 27, 2005
			BOD resolution to acquire Shinhan Life Insurance as the Group’s subsidiary through a
			small-scale share swap
	§		November 24, 2005
			Completion of final Stockholders’ Meeting concerning the liquidation of e-Shinhan
	§		December 13, 2005
			Acquisition of Shinhan Life Insurance as the Group’s subsidiary

Principal Subsidiaries under Korean Law as of December 31, 2005

     Direct Subsidiaries

Subsidiaries		Ownerships by SFG
Shinhan Bank			100.0	%
Chohung Bank			100.0	%
Good Morning Shinhan Securities1)			100.0	%
Shinhan Life Insurance2)			100.0	%
Shinhan Card			100.0	%
Shinhan Capital			100.0	%
Shinhan BNP Paribas ITMC			50.0	%
Jeju Bank3)			62.4	%
SH&C life Insurance			50.0	%
Shinhan Macquarie Financial Advisory			51.0	%
Shinhan Credit Information			100.0	%
Shinhan Private Equity			100.0	%

     Indirect subsidiaries held through direct subsidiaries

Direct Subsidiaries		Indirect Subsidiaries		Ownerships by the
				Parent
Shinhan Bank		Shinhan Data System			100.0	%
		Shinhan Finance (Hong Kong)			100.0	%
Chohung Bank		Chohung ITMC			79.8	%
		Chohung Finance (Hong Kong)			100.0	%
		CHB America Bank			100.0	%
		Chohung Bank GmbH			100.0	%
		Chohung Vina Bank			50.0	%
		CHB Valuemeet 2001 year 1st Securitization			50.0	%
		CHB Valuemeet 2001 year 2nd Securitization			50.0	%
		CHB Valuemeet 2002 year 1st Securitization			50.0	%
Good Morning		Good Morning Shinhan Securities Europe			100.0	%
Shinhan Securities		Good Morning Shinhan Securities USA			100.0	%
Shinhan Private Equity		Shinhan NPS Private Equity Fund 1			5.0	% 1)

The table below shows the number of issued and outstanding shares of the Group as of December 31, 2005

Types of Shares		Number of Shares				Total amount of
						par value(KRW)
Common Shares			359,207,313				1,796,036,565,000
Redeemable Preferred Shares			52,583,961				262,919,805,000
Redeemable Convertible Preferred Shares			22,360,301				111,801,505,000
Total			434,151,575				2,170,757,875,000

Employee Stock Ownership Plan (ESOP)

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

Contributed to

Contribution Date

Contribution Amount

Contributor

Use of money

(KRW)

Apr. 15, 2005

681,779,448

SFG

Stock Purchase

Association Accounts

Apr. 14, 2005

32,550,000,000

SHB

Stock Purchase

Apr. 13, 2005

297,775,000

Shinhan Capital

Stock Purchase

Sub-total

33,529,554,448

—

Employee Accounts

Nov. 28–Dec. 29, 2005

19,894,745,599

Employees

Stock Purchase

Sub-total

19,894,745,599

—

Total

53,424,300,047

—

(2) Changes in ESOA Share Ownership ¹⁾

(Unit: shares)

						Beginning												Ending Balance
						Balance												(December 31,
		Share type				(Jan.1, 2005)				Increase2)				Decrease3)				2005)
Association Accounts		Common Shares					650,146				1,293,682				1,415				1,942,413
Employee Accounts		Common Shares					0				845,790				2,520				843,270
Total			—				650,146				2,139,472				3,935				2,785,683

(3) ESOA Share Ownership per each company

(As of December 31, 2005, Unit: shares)

Company		Association Accounts				Employee Accounts				Total Balance
Shinhan Financial Group			36,672				8,556				45,228
Shinhan Bank			1,887,334				582,443				2,469,777
Chohung Bank			—				207,436				207,436
Shinhan Capital			18,407				96				18,503
Shinhan Card			—				8,989				8,989
Shinhan Life Insurance			—				31,578				31,578
SH&C Life Insurance			—				652				652
Shinhan Credit Information			—				576				576
Shinhan Data System			—				2,944				2,944
Total			1,942,413				843,270				2,785,683

2. Business Results

Operational Results

(in millions of Korean Won)

		2005				2004				2003
		(Jan.1~Dec.31)				(Jan.1~Dec.31)				(Jan.1~Dec.31)
Operating Revenue			1,886,806				1,224,147				617,074
Gain using the equity method of accounting			1,789,621				1,108,952				519,287
Interest income			95,812				114,264				97,787
Other income			1,373				931				—
Operating Expense			154,873				147,638				251,366
Loss using the equity method of accounting			1,047				212				129,886
Operating Income			1,731,933				1,076,509				365,708

Source and Use of Funds

Source of Funds

(in millions of Korean Won)

		2005								2004								2003
		(Jan.1~Dec.31)								(Jan.1~Dec.31)								(Jan.1~Dec.31)
		Average				Ratio				Average				Ratio				Average				Ratio
		Balance 1)				(%)				Balance 1)				(%)				Balance 1)				(%)
Stockholders’ Equity			8,463,137				77.36				6,770,562				74.00				4,768,492				73.82
Capital Stock			2,100,646				19.20				2,012,812				22.00				1,660,319				25.70
Capital Surplus			3,846,957				35.16				3,485,465				38.10				2,512,502				38.89
Retained Earnings			2,158,881				19.73				1,130,293				12.35				692,409				10.72
Capital Adjustment			356,653				3.26				141,992				1.55				-96,738				-1.50
Borrowings			2,477,425				22.64				2,378,244				26.00				1,691,375				26.18
Debentures			2,090,759				19.11				2,017,816				22.06				1,434,951				22.21
Other liabilities			386,666				3.53				360,428				3.94				256,424				3.97
Total			10,940,562				100.00				9,148,806				100.00				6,459,867				100.00

Use of Funds

(in millions of Korean Won)

		2005								2004								2003
		(Jan.1~Dec.31)								(Jan.1~Dec.31)								(Jan.1~Dec.31)
		Average				Ratio				Average				Ratio				Average				Ratio
		Balance 1)				(%)				Balance 1)				(%)				Balance 1)				(%)
Investments on equity stock			9,060,179				82.81				7,100,773				77.61				5,882,011				77.81
Shinhan Bank			4,198,207				38.37				3,709,669				40.55				3,139,126				41.53
Chohung Bank			3,393,190				31.01				2,411,868				26.36				1,831,964				24.24
Good Morning Shinhan Securities			867,403				7.93				610,171				6.67				537,265				7.11
Shinhan Life Insurance			147,558				1.35				—				—				—				—
Shinhan Card			197,754				1.81				162,378				1.77				191,094				2.53

		2005								2004								2003
		(Jan.1~Dec.31)								(Jan.1~Dec.31)								(Jan.1~Dec.31)
		Average				Ratio				Average				Ratio				Average				Ratio
		Balance 1)				(%)				Balance 1)				(%)				Balance 1)				(%)
Shinhan Capital			139,108				1.27				112,775				1.23				95,384				1.26
Shinhan BNP Paribas ITMC			23,139				0.21				22,435				0.25				22,109				0.29
E-Shinhan			2,197				0.02				2,617				0.03				3,331				0.04
Shinhan Macquarie FA			1,641				0.01				1,159				0.01				578				0.01
Jeju Bank			57,606				0.53				49,418				0.54				44,783				0.59
Shinhan Credit Information			8,198				0.07				4,628				0.05				2,392				0.03
SH&C Life Insurance			14,879				0.14				13,655				0.15				13,985				0.19
Shinhan Private Equity			9,300				0.09				1,958				0.02				—				—
Investment on Bonds			—				—				—				—				905				0.01
Loans			1,667,537				15.24				1,953,788				21.36				1,618,091				21.41
Fixed Assets			1,296				0.01				1,508				0.02				1,434				0.02
Intangible Assets			1,030				0.01				477				0.01				471				0.01
Cash Deposit in bank			177,313				1.62				55,370				0.61				25,326				0.34
Other Assets			33,207				0.31				36,893				0.40				30,808				0.41
Total			10,940,562				100.00				9,148,809				100.00				7,559,046				100.00

Other Financial Information

Requisite Capital Ratio

(in billions of Korean Won)

		2005				2004				2003
Aggregate Amount of Equity Capital (A)			11,434.0				9,867.9				8,847.7
Requisite Capital (B)			8,609.1				7,625.3				7,472.0
Requisite Capital Ratio (A/B) 1)			132.81	%			129.41	%			118.41	%

Won Liquidity Ratio

(in millions of Korean Won)

		2005				2004				2003
Won Assets due within 3 months (A)			341,547				221,335				16,687
Won Liabilities due within 3 months (B)			332,746				212,081				15,504
Won Liquidity Ratio (A/B) 1)			102.65	%			104.36	%			107.63	%

Liabilities to Equity Ratio

(in millions of Korean Won)

		2005				2004				2003
Liabilities (A)			2,325,114				2,325,043				2,176,875
Equity (B)			10,137,017				7,747,271				5,523,410
Liabilities to Equity Ratio (A/B)			22.94	%			30.01	%			39.41	%

Capital Adequacy Ratio and Other Ratios of Certain Subsidiaries

(1) Total Capital Adequacy Ratio (%)

		2005				2004				2003
Shinhan Bank			12.23				11.94				10.49
Chohung Bank			10.94				9.40				8.87
Jeju Bank			11.71				10.91				10.96

(2) Net Capital Ratio (%)

		Dec.31 2005				Mar.31 2005				Mar.31 2004
Good Morning Shinhan Securities			614.84				629.22				480.69

(3) Solvency Margin Ratio (%)

		Dec.31 2005				Mar.31 2005				Mar.31 2004
Shinhan Life Insurance			232.12				—				—

(4) Adjusted Equity Capital Ratio (%)

		2005				2004				2003
Shinhan Card			17.68				16.48				13.78

(5) Non Performing Loans

(in billions of Korean Won)

						Dec. 31. 2004				Dec. 31. 2003
						(March 31, 2005 for GMS				(March 31, 2004 for GMS
		Dec. 31. 2005				Securities)				Securities)
		Balance of		NPL to total		Balance of		NPL to total		Balance of		NPL to total
		NPL		Loans (%)		NPL		Loans(%)		NPL		Loans (%)
Shinhan Bank 1)		363.5		0.64		434.4		0.84		398.5		0.82
Chohung Bank 1)		531.3		1.15		814.1		1.89		1,879.6		4.19
Jeju Bank 1)		16.3		1.15		30.3		2.33		29.8		2.27
GMS Securities 2)		25.1		5.12		30.7		11.75		38.2		13.48
Shinhan Card 3)		33.4		2.71		37.5		4.46		74.7		6.34

1)		Non-performing loans of banks are defined as those loans are past due more than 90 days or those are placed on non-accrual status according to the guidelines of the Financial Supervisory Service.
2)		Under the guidelines of the Financial Supervisory Service, every securities company shall classify its loans into five categories: “normal,” “precautionary,” “substandard,” “doubtful” and “estimated loss.” Under the Group’s internal measures, non-performing loans of Good Morning Shinhan Securities includes loans classified as “substandard,” “doubtful,” and “estimated loss.”
3)		Under the guidelines of the Financial Supervisory Service, every credit card company shall classify its loans into five categories: “normal,” “precautionary,” “substandard,” “doubtful” and “estimated loss.” Under the Group’s internal measures, non-performing loans of Shinhan Card includes loans classified as “substandard,” “doubtful” and “estimated loss.”
(6)		Loan Loss Allowances & Write-offs for the period

(in billions of Korean Won)

								Jan. 1, 2005~				Jan. 1, 2004~				Jan. 1, 2003~
								Dec. 31, 2005				Dec. 31, 2004				Dec. 31, 2003
Shinhan Bank		Loan Loss Allowance		Domestic					627.3				663.0				791.9
				Overseas					56.3				80.5				74.5
				Total					683.6				743.5				866.4
		Write-offs							108.2				232.6				70.1
Chohung Bank		Loan Loss Allowance		Domestic					861.2				955.5				1,602.6
				Overseas					27.6				51.2				56.3
				Total					888.8				1,006.7				1,658.9
		Write-offs							571.5				1,400.2				1,781.2
Jeju Bank		Loan Loss Allowance		Domestic					25.3				32.2				34.5
				Overseas					—				—				—
				Total					25.3				32.2				34.5
		Write-offs							19.1				24.7				17.9
GM Shinhan Securities1)		Loan Loss Allowance		Domestic					27.2				30.9				30.9
				Overseas					—				—				—
				Total					27.2				30.9				30.9
		Write-offs							3.7				1.9				—

								Jan. 1, 2005~				Jan. 1, 2004~				Jan. 1, 2003~
								Dec. 31, 2005				Dec. 31, 2004				Dec. 31, 2003
Shinhan Card		Loan Loss Allowance		Domestic					46.3				49.8				94.6
				Overseas					—				—				—
				Total					46.3				49.8				94.6
		Write-offs							86.2				233.2				277.0

1)

The fiscal year of Good Morning Shinhan Securities ends on March 31 of each year. Accordingly, the relevant periods for Good Morning Shinhan Securities are adjusted as follows: (i) from April 1, 2005 to December 31, 2005, (ii) from April 1, 2004 to March 31, 2005, and (iii) from April 1, 2003 to March 31, 2004.

3. Independent Accountant

Audit Opinion for the last 3 years

FY 2005

FY 2004

FY 2003

Audit Opinion

Unqualified

Unqualified

Unqualified

Compensation to the Independent Auditor for Audit and Review Services

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

Year		Auditor		Payment (KRW)		Working hours
2005		KPMG Samjong Accounting Corp.		288,000,000		3,073 hours
2004		KPMG Samjong Accounting Corp.		300,000,000		2,504 hours
2003		KPMG Samjong Accounting Corp.		210,000,000		1,560 hours

Compensation for Services Other than Audit and Review

     The following is a description of the fees and commissions paid to our independent auditor for the services set forth below for the last three years.

Year		Month		Service description		Payment
2005		Jan.		Audit of the Financial Statements based on US GAAP		USD2,000,000
		Sept.		Settlement of taxation affairs		KRW15,000,000
2004		Jan.		Consulting services for disclosure control and procedure & Internal control system		KRW1,375,000,000
2003		Sept.		Due diligence on Chohung Bank		KRW904,000,000
		July		Valuation of common shares of Chohung Bank		KRW100,000,000

4. Directors, Executive Officers and Employees

Directors and Executive Officers

1) Executive Directors

Our executive directors are as follows as of March 21, 2006:

Name		Date of Birth		Position		Service Term
Eung Chan Ra		Nov.25, 1938		Chairman of BOD		3 years starting from March 25, 2004
				Head of the Board Steering Committee
In Ho Lee		Nov. 2, 1943		President & CEO		3 years starting from March 25, 2004
				Board Steering Committee member
Young Hwi Choi		Oct. 28, 1945		Executive Director		3 years starting from March 25, 2004

2) Non-Executive Directors

     Currently, 12 non-executive directors are in office. Of the twelve members, 10 are outside directors, nominated by our Outside Director Recommendation Committee and appointed pursuant to the approval of general shareholders’ meeting on March 21, 2006.

     Our non-executive directors are as follows:

Name		Date of Birth		Current Position		Service Term
Young Seok Choi		Jul. 2, 1929		Non-Executive Directors,		3 years starting from March 25, 2004
				Audit Committee member
Yong Woong Yang		Aug. 4, 1948		Non-Executive Directors		3 years starting from March 25, 2004
Il Sup Kim		Jul. 1, 1946		Outside Director		1 year starting from March 21, 2006
				Head of Audit Committee
Sang Yoon Lee		Sep. 13, 1942		Outside Director		1 year starting from March 21, 2006
				Board Steering Committee member
				Audit Committee member
Yoon Soo Yoon		Mar. 5, 1946		Outside Director		1 year starting from March 21, 2006
Shee Yul Ryoo		Sep. 5, 1938		Outside Director		1 year starting from March 21, 2006
				Board Steering Committee member
Byung Hun Park		Sep. 10, 1928		Outside Director		1 year starting from March 21, 2006
				Board Steering Committee member
Young Hoon Choi		Nov. 8, 1928		Outside Director		1 year starting from March 21, 2006
Si Jong Kim		Apr. 16, 1937		Outside Director		1 year starting from March 21, 2006
				Audit Committee member
Philippe Reynieix		Jun. 24, 1949		Outside Director		1 year starting from March 21, 2006
Haeng Nam Chung		Mar. 15, 1941		Outside Director		1 year starting from March 21, 2006
Myoung Soo Choi		Aug. 5, 1957		Outside Director		1 year starting from March 21, 2006

For personal profiles of the outside directors, please refer to 6-K filed on February 24, 2006 .

     3) Executive Officers

     In addition to the executive directors, we currently have the following executive officers:

Name		Date of Birth				Position				Taking Charge of
Jae Woo Lee		July 2, 1950				Managing Director				General Affairs Team, Public Relations Team, and
										Human Resources Team
Byung Jae Cho		Jan. 6, 1951				Managing Director				Finance Planning Team, Risk Management Team,
										and Investor Relations Team
Jin Won Seo		April 20, 1951				Managing Director				Strategic Planning Team,
										Future Strategy & Management Team, and
										Information & Technology Planning Team,
Jae Woon Yoon		July 22, 1951				Managing Director				Joint Procurement Team,
										Synergy Management Team, and
										Audit & Compliance Team

Stock Options

								Number of Changes
								No. of
				No. of				Exercised				No. of Cancelled				No. of Exercisable
		Guarantee		Granted Options				Options				Options				Options
Granted on 2002		Management, Head of Department			864,576				213,011				0				651,565
Granted on 2003		Management, Head of Department			1,020,206				233,879				11,390				774,937
Granted on 2004		Management, Head of Department			1,301,600				0				11,800				1,289,800
Granted on 2005		Management, Head of Department, Outside Directors			2,695,200				0				62,400				2,632,800
Granted on 2006		Management, Head of Department, Outside Directors			3,296,200				0				0				3,296,200
		Total			9,177,782				446,890				85,590				8,645,302

Employees

(As of December 31, 2005)

Total Salaries and wages paid

Average Payment per

Number of

Average length of

in 2005

person (in mil. of

Employees

Service

(in mil. of Korean Won)

Korean Won)

Male

75

2 years and 3 months

6,168

82

Female

23

2 years and 1 month

727

32

Total

98

2 years and 2 months

6,895

70

5. Activities of Board of Directors and sub-committees for the year 2005~2006

Meetings of Board of Directors

		Date		Agenda
1		Feb. 2, 2005		1. Closing of the 4th FY (Jan.1, 2004 ~ Dec 31. 2004)		Approved
				2. Appointment of Outside Director Recommendation Committee members		Approved
				- Byung Hun Park, Eung Chan Ra, Pyung Joo Kim, Dong Hyun Kwon, and Yoon Soo Yoon
2		Feb. 22, 2005		1. Convening of the 4th General Meeting of Shareholders		Approved
				- 10:00 AM, March 30, 2005
				2. Remuneration levels for Directors		Approved
				- KRW 4 billion
				3. Stock option grant to executives, employees and outside directors of the Group and Subsidiaries		Approved
				- 1,196,000 shares for executive, 50,000 shares for outside directors, and up to 1,500,000 shares for employees
3		March 30, 2005		1. Appointment of Board steering Committee members		Approved
				- Eung Chan Ra, Young Hwi Choi, Byung Hun Park, Pyung Joo Kim, and Shee Yul Ryoo
				2. Appointment of Risk Management Committee members		Approved
				- Pyung Joo Kim, Yoon Soo Yoon, and Reynieix
				3. Decision on Director compensation level		Approved
4		May 17, 2005		1. Adoption of Code of Ethics for Finance Officers and Employees		Approved
				- Purpose, Application, Conduct Guideline and etc.
				2. Approval of the Volume Limit of Corporate Bond Issue for the 2nd half of 2005		Approved
				- KRW 1,100 billion ( including USD 50 million)
				3. Adjustment of the Number of Stock Options Granted in 2003		Approved
				- The number of stock option granted was adjusted with the retirement of 31 officers and employees.
				4. Change of CEO		Approved
				- Dismissal: Mr. Young Hwi Choi, Appointment: Mr. In Ho Lee
				5. Appointment of Sub Committees Members		Approved
				- Board Steering Committee: Young Hwi Choi was dismissed and In Ho Lee was Appointed
				- Compensation Committee: Pyung Joo Kim, Il Sup Kim, Sang Yoon Lee, Yoon Soo Yoon, and Shee Yul Ryoo were appointed.
5		June 29, 2005		1. Incorporation of Shinhan Private Equity Fund No.1 into SFG’s Indirect Subsidiary		Approved
				- To be established in July 2005 as a subsidiary of Shinhan Private Equity
				2. Amendment of Regulations		Approved
				- Board Regulations, Management Operation Regulations, and Subsidiary Management Committee Regulations
				3. Determination of Director Remuneration		Approved
				- Amendment of Director Remuneration Plan
6		Aug. 26, 2005		1. Cancellation of Stock Option		Approved
				- To cancel 51,800 shares previously granted to 8 people
				2. Exclusion of e-Shinhan from Shinhan Financial Group		Approved
				- liquidation of e-Shinhan
				3. Set-up of Bank Merger Committee		Approved
				- To be launched in September or October 2005, consisting of 7 members including a chairperson
				4. Set-up of Credit Card Business Competency Enhancement Committee		Approved
				- To be launched in September or October 2005, consisting of 5 members including a chairperson
				5. Appointment of Non-Director Executive Officers		Approved
				- Mr. Byung Jae Cho (re-appointed) and Mr. Jae Woon Yoon (newly appointed)
7		Sep. 27, 2005		1. Acquisition of 100% of Shinhan Life Insurance through a Small-Scale Share Swap		Approved
				- To include Shinhan Life Insurance as the Group’s subsidiary through a small scale share swap by the end of December 2005

		Date		Agenda
8		Nov. 4, 2005		1. Appointment of Sub-Committee members		Approved
				- Board Steering Committee: Mr. Sang Yoon Lee
				- Risk Management Committee: Mr. Shee Yul Ryoo
9		Dec. 13, 2005		1. Arrangement of business plans and budget for 2006		Approved
				- Business strategy, financial plans, predicted business budget for year 2006
				2. Arrangements on limitations of SFG’s financial support and methods of consent to its subsidiaries		Approved
				- Decision to limit SFG’s financial support budget to KRW 1,870 billion
				3. Approval of Limitation of corporate bond issuance for the first half of 2006		Approved
				- Issuance limited to KRW 1,800 billion
				4. Establishment of Scholarship Foundation		Approved
				- Contribution in the initial stage: max KRW 50 billion, business purpose: scholarship business, 5 directors, 2 auditors
				5. Cancellation of Stock Option		Approved
				- To cancel 22,400 shares previously granted to 2 people
10		Jan. 12, 2006		1. Appointment of Outside Director Recommendation Committee members		Approved
				- Eung Chan Ra, Byung Hun Park, Young Hoon Choi, Shee Yul Ryoo, Yoon Soo Yoon
				2. Appointment of management (non-director)		Approved
				- Baek Soon Lee (term ending: March 31, 2006)
11		Feb. 6, 2006		1. Partial alteration of the articles of association		Approved
				2. Closing of the 5th FY(2005)		Approved
12		Feb. 16, 2006		1. Convening of the 5th General Meeting of Shareholders		Approved
				- 10:00 AM, March 21, 2006
				2. Remuneration levels for Directors		Approved
				- KRW 5 billion
				3. Stock option grant to executives, employees and outside directors of the Group and Subsidiaries		Approved
				- 1,418,900 shares for executives and management, 40,000 shares for outside directors, and up to 2,098,600 shares for employees
				4. Alterations in previous contract concerning the granting of Stock Options		Approved
				5. Alterations in regulations concerning the ‘Guide to provide and use Personal Credit Information’		Approved
				6. Appointment of management (non-director)		Approved
				- Jin Won Suh (term ending: January 12, 2008)
				7. Appointment of corporate advisor		Approved
				- advisor: Byung Joo Kim
13		March 21, 2006		1. Appointment of Board steering Committee members		Approved
				- Eung Chan Rha, In Ho Lee, Byung Hun Park, Shee Yul Ryoo, Sang Yoon Lee
				2. Confirmation of Director Remuneration		Approved
				- Confirmation of individual director remuneration within the limitations set by the Board of Directors

Meetings of Audit Committee

		Date		Agenda
1		Feb. 22, 2005		1. Audit Results for the 4th Fiscal Year		Approved
				- Confirmation of Audit Results for the 4th FY and Submission of Audit Report
				2. Appointment of Independent Auditors for Korean GAAP		Approved
				- KPMC Samjong Accounting Corp. was appointed
				3. Evaluation of the Operation Status of the Internal Accounting Control System for the Year		Approved
				2004 - The internal accounting control system is properly operated.
				4. Evaluation of the Internal Monitoring System		Approved
				- The internal monitoring system is properly operated.
				5. Approval of the Group Audit Plan for 2005
				- the agenda transferred to the next audit committee		Not Approved

		Date		Agenda
				6. Ratification of the Company and its Subsidiaries’ Non-audit Contracts		Approved
				1) Audit and Tax Adjustment ( Shinhan Finance Ltd. with KPMG Samjong)
				2) Comfort Letters regarding the issue of bond in foreign currency (Shinhan Bank with KPMG Samjong)
				7. Audit of Approval Items for the FY 4 General Shareholders’ Meeting		Approved
				-The approval items are appropriate.
2		Mar. 30, 2005		1. Appointment of Independent Auditors for US GAAP		Approved
				- KPMC Samjong Accounting Corp. was appointed
				2. Approval of the Group Audit Plan for 2005		Approved
3		May 17, 2005		1. Appointment of Head of Audit Committee		Approved
				- Mr. Il Sup Kim
				2. Establishment of Insider Reporting System		Approved
				- Establishing Insider Reporting System and adopting relevant regulations
				3. Rectification of Subsidiaries’ Non audit Contracts		Approved
				1) 2005 Tax Adjustment and review (Chohung Bank with KPMG Samjong)
				2) Income Tax Advisory, Tax Adjustment, and Comfort letter on Important Items of Financial Statement (Shinhan Private Equity with KPMG Samjong)
4		June 29, 2005		1. Rectification of Subsidiaries’ Non audit Contracts		Approved
				- Comfort Letters regarding the issue of bond (Shinhan Bank with KPMG Samjong)
5		Aug. 26, 2005		1. Approval of appointment and dismissal of Head of Audit & Compliance Team		Approved
				- Newly appointed Head of Audit & Compliance Team: Mr. Eui Kwon Kwak
6		Nov. 6, 2005		1. Establishment of a Guideline for Subsidiaries’ Audit Planning and Operation		Approved
7		Feb. 16, 2006		1. Audit Results for the 5th Fiscal Year		Approved
				- Confirmation of Audit Results for the 5th FY and Submission of Audit Report
				2. Appointment of Independent Auditors for US GAAP, for Shinhan Life Insurance		Approved
				- KPMC Samjong Accounting Corp. was appointed
				3. Evaluation of the Operation Status of the Internal Accounting Control System for the Year 2005		Approved
				- The internal accounting control system is properly operated.
				- The proper operation of the internal accounting control system of the major subsidiaries are to be reported separately
				4. Evaluation of the Internal Monitoring System		Approved
				- The internal monitoring system is properly operated.
				5. Ratification of the Company and its Subsidiaries’ Non-audit Contracts		Approved
				1) Examination of financial statements for the acquisition process of Shinhan Life Insurance (Shinhan Financial Group – Samjong Accounting Corp.)
				2) Examination of financial statements for the acquisition process of Shinhan Life Insurance (Shinhan Life Insurance – Samjong Accounting Corp.)
				3) Income Tax Advisory, Tax Adjustment (Shinhan Bank New York Branch–KPMG New York)
				4) Auditing and Tax adjustment concerning PEF Shinhan National Pension
				5) Comfort Letters regarding the issuance of bonds (Shinhan Bank with Samjong Accounting Corp.)
				6. Auditing Results of the 5th Annual Shareholders’ Meeting		Approved
				- Results found to be appropriate
8		Mar. 21, 2006		1. Approval of auditing plans for 2006		Approved
				- Auditing plans for Shinhan Financial Group and subsidiary companies approved
				2. Approval of auditing fees of K-GAAP		Approved
				- Auditing fees considered appropriate for Korean accounting standards

Meetings of Outside Director Recommendation Committee

Date

Agenda

1

Feb.2, 2005

1. Appointment of Head of Outside Director Recommendation Committee

Approved

- Mr. Byung Hun Park

2

Feb. 16, 2005

1. Recommendation of Outside Director Candidates

Approved

- Outside director candidates: Byung Hun Park, Dong Hyun Kwon , Young Hoon Choi,

Si Jong Kim and Philippe Reynieix (5 candidates)

- Outside director candidates with professional expertise: Pyung Joo Kim, Il Sup Kim,

Sang Yoon Lee, Yoon Soo Yoon, and Shee Yul Ryoo (5 candidates)

3

Jan. 12, 2006

1. Appointment of Head of Outside Director Recommendation Committee

Approved

- Mr. Byung Hun Park

1. Recommendation of Outside Director Candidates

- Outside director candidates: Byung Hun Park, Si Jong Kim, Young Hoon Choi,

4

Feb. 16, 2006

Myung Soo Choi, Hang Nam Jung and Philippe Reynieix (6 candidates)

- Outside director candidates with professional expertise: Il Sup Kim,

Sang Yoon Lee, Yoon Soo Yoon, and Shee Yul Ryoo (4 candidates)

Approved

6. Market Price Information of our Common Shares and ADRs

Common Share Traded on the Korea Exchange

(in Korean Won or number of shares)

						Sept. 2005				Oct. 2005				Nov. 2005				Dec. 2005				Jan. 2006				Feb. 2006
Price per share		High					37,200				37,400				41,000				43,100				42,300				41,450
		Low					31,500				33,750				36,300				39,000				37,700				38,250
Trading Volume							22,816,559				24,953,683				29,170,702				25,024,286				24,454,664				22,609,271

American Depositary Shares traded on the New York Stock Exchange

     Shinhan Financial Group listed its American Depositary Shares on the New York Stock Exchange on September 16, 2003.

(in US Dollars or number of shares)

						Sept. 2005				Oct. 2005				Nov. 2005				Dec. 2005				Jan. 2006				Feb. 2006
Price per share		High					72.20				72.17				78.87				84.71				86.40				86.78
		Low					61.90				64.52				69.75				75.55				77.00				78.66
Trading Volume							362,500				477,700				501,700				468,100				695,300				670,300

7. Related Party Transactions

Loans to Subsidiaries

(As of December 31, 2005)                   

																						Beginning												Ending
						Origination				Maturity				Funding				Lending				Balance												Balance
Borrower		Loan Type				date				date				Rate				Rate				Jan. 1 2005				Increase				Decrease				Dec. 31, 2005
Good Morning
Shinhan Securities		Loans in KRW				31-Jan-05				31-Jul-10					4.59	%			5.25	%			—				700				—				700
		Privately Placed
Shinhan Bank		Bonds				21-Dec-01				21-Mar-08					7.12	%			7.42	%			500				—				—				500
Shinhan Card		Loans in KRW				21-Nov-02				21-Nov-05					5.60	%			5.93	%			1,000				—				1,000				—
Shinhan Card		Loans in KRW				16-Dec-02				16-Dec-05					5.65	%			5.95	%			1,000				—				1,000				—
Shinhan Card		Loans in KRW				24-Jan-03				24-Jan-05					5.04	%			5.39	%			500				—				500				—
Shinhan Card		Loans in KRW				24-Jan-03				24-Jan-06					5.19	%			5.50	%			500				—				—				500
Shinhan Card		Loans in KRW				26-Feb-03				26-Feb-05					4.89	%			5.24	%			1,000								1,000				—
Shinhan Card		Loans in KRW				26-Feb-03				26-Feb-06					4.99	%			5.29	%			2,000				—				—				2,000
Shinhan Card		Loans in KRW				23-Apr-03				23-Apr-09					5.47	%			6.28	%			1,000				—				—				1,000
Shinhan Card		Loans in KRW				23-May-03				23-May-05					5.11	%			5.45	%			500				—				500				—
Shinhan Card		Loans in KRW				23-May-03				23-May-06					5.29	%			5.59	%			500				—				—				500
Shinhan Card		Loans in KRW				24-Jun-03				24-Jun-06					5.43	%			5.73	%			1,500				—				—				1,500
Shinhan Card		Loans in KRW				24-Oct-03				24-Oct-06					4.63	%			4.95	%			1,000				—				—				1,000
Shinhan Card		Loans in KRW				18-Mar-05				18-Mar-07					4.13	%			4.49	%			—				500				—				500
Shinhan Card		Loans in KRW				18-Mar-05				18-Mar-08					4.23	%			4.54	%			—				500				—				500
Shinhan Capital		Loans in KRW				30-Jan-02				30-Jan-05					6.69	%			7.34	%			300				—				300				—
Shinhan Capital		Loans in KRW				29-Mar-02				04-Apr-07					7.47	%			8.12	%			200				—				—				200
Shinhan Capital		Loans in KRW				29-Apr-02				29-Apr-05					6.84	%			7.49	%			300				—				300				—
Shinhan Capital		Loans in KRW				26-Jun-02				26-Jun-05					6.30	%			6.95	%			300				—				300				—
Shinhan Capital		Loans in KRW				29-Jul-02				29-Jul-07					6.30	%			6.65	%			200				—				—				200
Shinhan Capital		Loans in KRW				21-Nov-02				21-Nov-07					5.88	%			6.18	%			200				—				—				200
Shinhan Capital		Loans in KRW				16-Dec-02				16-Dec-05					5.65	%			5.95	%			300				—				300				—
Shinhan Capital		Loans in KRW				16-Dec-02				16-Dec-07					5.96	%			6.22	%			200				—				—				200
Shinhan Capital		Loans in KRW				24-Jan-03				24-Jan-06					5.19	%			5.54	%			200				—				—				200
Shinhan Capital		Loans in KRW				23-Apr-03				23-Apr-05					5.28	%			5.65	%			500				—				500				—
Shinhan Capital		Loans in KRW				23-May-03				23-May-06					5.29	%			5.59	%			500				—				—				500
Shinhan Capital		Loans in KRW				24-Jun-03				24-Jun-08					5.69	%			5.95	%			300				—				—				300
Shinhan Capital		Loans in KRW				24-Jul-03				24-Jul-06					5.55	%			5.85	%			300				—				—				300
Shinhan Capital		Loans in KRW				24-Jul-03				24-Jul-08					5.87	%			6.13	%			200				—				—				200
Shinhan Capital		Loans in KRW				24-Mar-04				24-Mar-07					4.76	%			5.16	%			300				—				—				300
Shinhan Capital		Loans in KRW				24-Mar-04				24-Mar-09					5.11	%			5.93	%			200				—				—				200
Shinhan Capital		Loans in KRW				25-Jun-04				25-Jun-09					4.93	%			5.22	%			500				—				—				500
Shinhan Capital		Loans in KRW				31-Jan-05				31-Jan-08					4.21	%			4.58	%			—				300				—				300
Shinhan Capital		Loans in KRW				18-Mar-05				18-Mar-07					4.23	%			4.49	%			—				500				—				500
Shinhan Capital		Loans in KRW				09-May-05				09-May-08					3.99	%			4.33	%			—				500				—				500
Shinhan Capital		Loans in KRW				16-Dec-05				16-Dec-08					5.48	%			5.67	%							400				—				400
Jeju Bank		Loans in KRW				28-Dec-05				28-Jan-11					5.74	%			6.43	%			—				200				—				200
		Loans in foreign												6M Libor				6M Libor
Shinhan Capital		Currency				13-Mar-02				13-Mar-05				+100bp				+120bp					313				—				313				—