Company: SHG
Filing Date: 2025-04-23
Form Type: 20-F
Source: 0001193125-25-089950
Chunk: 300

Company: SHINHAN FINANCIAL GROUP CO LTD
Filing Date: 2025-04-23
Form: 20-F
Chunk 300
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 |   1,198 |
| Borrowings from the Bank of Korea |     |                         |   3,106 |
| Other short-term borrowings       |     |                         |  33,359 |
| Asset securitizations             |     |                         |  11,543 |
| Stockholders’ equity(1)           |     |                         |  18,922 |
| Total                             |     | W                       | 585,748 |

Note:

| (1) | Includes capital stock, share premium, and hybrid bonds issued. |

222

#### We obtain funding from a variety of sources, both domestic and foreign. Our principal source of funding is customer deposits obtained from our banking operations, and we from time to time issue equity and debt securities. In addition, our subsidiaries acquire funding through call money, borrowings from the Bank of Korea, other short-term borrowings, corporate debentures, other long-term debt and asset-backed securitizations.Our primary funding strategy has been to achievelow-costfunding by increasing the average balances oflow-costretail customer deposits. Customer deposits accounted 72.4% of our total funding as of December 31, 2022, 70.7% of our total funding as of December 31, 2023 and 72.2% of our total funding as of December 31, 2024. Historically, except in limited circumstances, largely due to the lack of alternative investment opportunities for individuals and households in Korea, especially in light of a low interest rate environment and volatile stock market conditions, a substantial portion of such customer deposits were rolled over upon maturity and accordingly provided a stable source of funding for our banking subsidiaries. However, in the face of attractive alternative investment opportunities such as during a bullish run of the stock market, customers may transfer a significant amount of bank deposits to alternative investment products in search of higher returns, which may result in temporary difficulties in finding sufficient funding on commercial terms favorable to us. In addition, in recent years, we have faced increasing pricing competition from our competitors with respect to our deposit products. If we do not continue to offer competitive interest rates to our deposit customers, we may lose their business, which has traditionally provided a stable andlow-costsource of funding. Even if we are able to match our competitors’ pricing, doing so may result in an increase in our funding costs, which may have an adverse impact on our results of operations.While our banking subsidiaries generally have not faced, and currently are not