Company: SHG
Filing Date: 2025-04-23
Form Type: 20-F
Source: 0001193125-25-089950
Chunk: 89

Company: SHINHAN FINANCIAL GROUP CO LTD
Filing Date: 2025-04-23
Form: 20-F
Chunk 89
---
 into, or is deemed to be incorporated into a business group subject to disclosure under the Monopoly Regulation and Fair Trade Act. Non-profitenterprises that satisfy certain requirements prescribed in the SME Framework Act and its Presidential Decree may qualify as a small- and medium-sizedenterprise. Furthermore, cooperatives and federations of cooperatives as prescribed by the Presidential Decree are deemed as small- and medium-sizedenterprises, effective from April 15, 2014. As of December 31, 2024, we had loans to 454,833 small- and medium-sizedenterprises for an aggregate amount of W145,327 billion (before allowance for credit losses on loans and deferred loan origination costs and fees). We believe that Shinhan Bank, whose traditional focus has been on small- and medium-sizedenterprises lending, is well-positioned to succeed in the small- and medium-sizedenterprises market in light of its marketing capabilities (which we believe have provided Shinhan Bank with significant customer loyalty) and its prudent 53

risk management practices, including conservative credit rating systems for credit approval. To maintain or increase its market share of small- and medium-sizedenterprises lending, Shinhan Bank:

| • |     | has accumulated a market-leading expertise and familiarity as to customers and products. We believe Shinhan Bank has an in-depth understanding of the credit risks embedded in this market segment, allowing Shinhan Bank to develop loan and other products specifically tailored to the needs of this market segment; |

| • |     | operates a relationship management system to provide customer services that are tailored to small- and medium-sized enterprises. Shinhan Bank currently has relationship management teams in 190 banking branches, of which 40 are corporate banking branches and 150 are hybrid banking branches designed to serve both retail customers and, to a limited extent, corporate customers. These relationship management teams market products, and review and approve smaller loans with less credit risks; and |

| • |     | continues to focus on cross-selling loan products with other products. For example, when Shinhan Bank lends to small- and medium-sized enterprises, it also explores opportunities to cross-sell retail loans or deposit products to the employees of these enterprises or to provide financial advisory services. |

Large Corporate Banking Large corporate customers consist primarily of member companies of chaebolsand financial institutions. Our large corporate loans amounted to W68,461 billion (before allowance for credit losses on loans and deferred loan origination costs and fees) as of December 31, 2024. Large corporate