Company: SHG
Filing Date: 2025-04-23
Form Type: 20-F
Source: 0001193125-25-089950
Chunk: 385

Company: SHINHAN FINANCIAL GROUP CO LTD
Filing Date: 2025-04-23
Form: 20-F
Chunk 385
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 an outside director nominating committee of which at least one-half of its members are required to be outside directors. However, there is no requirement to establish a corporate governance committee under applicable Korean law. Our outside director nominating committee consists of a majority of outside directors. However, if the agenda for a general shareholders’ meeting includes appointment of an outside director, all outside directors are required to participate as committee members during the final candidate recommendation process. The composition of the committee is in compliance with the relevant provisions under the Korean Commercial Code and the Act on Corporate Governance of Financial Companies, and the chair of the committee must be an outside director pursuant to the Act on Corporate Governance of Financial Companies.

We currently have a committee for recommending candidates for CEO, which is responsible for general corporate governance, reviewing and recommending nominees for the president and/or CEO of our group and the development, operation and review of our management succession plan, including setting the qualifications for the CEO, evaluating the CEO candidate pool and recommending CEO candidates. The chair of the committee must be an outside director, and the incumbent CEO may be restricted from participating and voting on matters related to CEO selection. We also have a committee for recommending candidates for independent directors and members of the audit committee, which is responsible for matters related to the recommendation and nomination of outside directors including audit committee members. In addition, in light of the recent emphasis on corporate governance, in March 2021, we transferred certain functions, such as those relating to code of ethics and other code of behavior, determination of the size of the board of directors and other matters necessary for improving our overall corporate governance structure, from the corporate governance committee to the board of directors.

Internal Control Committee

Under the amended Act on Corporate Governance of Financial Companies which came into effect on July 3, 2024, financial institutions including financial holding companies must establish an internal control committee of**

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**which at least one-half of its members must be outside directors and whose chairman must be an outside director. However, internal control committee may not be established if, as prescribed by the financial company’s articles of incorporation, the audit committee or the risk management committee requests for the inspection, evaluation and necessary measures regarding whether executives or the representative director are properly performing management measures and reporting duties, and deliberates and resolves on (i) the establishment of the basic policy and strategy for internal control, (ii) the establishment of a plan to establish an organizational culture that values the professional ethics and compliance spirit of officers and employees, (iii