Company: SHG
Filing Date: 2025-04-23
Form Type: 20-F
Source: 0001193125-25-089950
Chunk: 456

Company: SHINHAN FINANCIAL GROUP CO LTD
Filing Date: 2025-04-23
Form: 20-F
Chunk 456
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F- 61

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(In millions of won)

December 31, 2023 and 2024

| 5. | Financial risk management (continued) |

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 amount, 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, 2023 and 2024 is as follows:

|                                                                     |     | 2023 |             |     | 2024 |             |
| Due from banks and loans at amortized cost (*1),(*3):               |     |      |             |     |      |             |
| Banks                                                               |     |    W |  15,099,247 |     |      |  14,058,051 |
| Retail                                                              |     |      | 177,454,344 |     |      | 199,809,576 |
| Government/Public sector/Central bank                               |     |      |  21,981,065 |     |      |  27,228,308 |
| Corporations                                                        |     |      | 202,763,657 |     |      | 218,713,457 |
| Card receivable                                                     |     |      |  26,896,950 |     |      |  27,714,