Company: SHG
Filing Date: 2025-04-23
Form Type: 20-F
Source: 0001193125-25-089950
Chunk: 144

Company: SHINHAN FINANCIAL GROUP CO LTD
Filing Date: 2025-04-23
Form: 20-F
Chunk 144
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forming loans to third parties including the Korea Asset Management Corporation; |

94

| • |     | entering into asset-backed securitization transactions with respect to non-performing loans; |

| • |     | managing retail loans that are three months or more past due through Shinhan Credit Information under an agency agreement; and |

| • |     | using third-party collection agencies including credit information companies. |

In 2024, we sold non-performingloans in the amount of W164 billion to third parties, including W82 billion transferred to UAMCO, Ltd., an investment management company. Loans transferred to third parties meet the criteria of true sale and are derecognized accordingly. The following table presents a roll-forward of our non-performingloans in 2024.

|                                                    |     | -In billions of Won |       |   |
| Non-performing loans as of December 31, 2023       |     | W                   | 2,216 |   |
| Additional non-performing loans due to delinquency |     |                     | 2,226 |   |
| Loans sold                                         |     |                     |  (164 | ) |
| Loans charged off                                  |     |                     |  (442 | ) |
| Loans modified and returned to performing          |     |                     |  (859 | ) |
| Other adjustments(1)                               |     |                     |  (336 | ) |
| Non-performing loans as of December 31, 2024       |     | W                   | 2,641 |   |

Note:

| (1) | Represents loans paid down or paid off and loans returned to performing other than as a result of modification. We do not separately collect and analyze data relating to non-performing loans other than those that were sold, charged off, modified and returned to performing, or transferred to held-for-sale investment portfolio. |

Loan Charge-offs Our gross charge-offs, including amortization of discount and disposal, increased by 12.3% from W1,777 billion in 2023 to W1,996 billion in 2024, primarily due to an increase in the amount of charge-offs for corporate loans and credit card loans in 2024 compared to 2023. The increase in the amount of charge-offs for corporate loans in 2024 was primarily due to write-offs for real estate-related corporate loans resulting from the deterioration of project financing loans as a measure taken by Shinhan Capital to manage financial soundness. The increase