Company: SHG
Filing Date: 2025-04-23
Form Type: 20-F
Source: 0001193125-25-089950
Chunk: 531

Company: SHINHAN FINANCIAL GROUP CO LTD
Filing Date: 2025-04-23
Form: 20-F
Chunk 531
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 Foreign exchange risk (*1) |     |                                                                 | (221,221 | ) |     |                                           | (1,191  | ) |     |                                                                  |       — |   |
|                            |     |                                                               W | (169,001 | ) |     |                                           | (12,409 | ) |     |                                                                  | 258,230 |   |

| (*1) | The related account categories are presented as interest rate swap assets / liabilities and currency swap assets / liabilities, currency forwards assets / liabilities and borrowings. |

| (*2) | The hedge ineffectiveness is the difference between gains and losses on hedged items and hedging instruments. |

| (e) | Effect of hedge accounting on the consolidated financial statements, statement of comprehensive income, statement of changes in equity |

| i) | Hedging purpose and strategy |

The Group transacts with derivative financial instruments to hedge its interest rate risk, currency risk and stock price fluctuation risk arising from the assets and liabilities of the Group. The Group applies the fair value hedge accounting for the changes in the market interest rates, foreign exchange rates and stock price of the Korean won structured notes, foreign currency generated financial debentures, Korean won structured deposits, foreign currency investment receivables and beneficiary securities in foreign currency; and cash flow hedge accounting for forward interest rate, interest rate swaps, forward currency and currency swaps to hedge cash flow risk due to interest rates and foreign exchange rates of the Korean won debt, foreign currency debt, foreign currency structured deposits, the Korean won bonds and foreign currency bonds, etc.

<div align='center'>F-13 9</div>

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(In millions of won)

December 31, 2023 and 2024

| 11. | Derivatives (continued) |

In addition, in order to hedge the exchange rate risk of the net investment in overseas business, the Group applies the net investment hedge accounting for foreign operations using currency forward and non-derivative financial instruments.

|                              |     |      2023 |           |   |     |       |           |   |     |       |           |   |     |       |         |   |     |       |           |   |     |                  |           |   |     |       |            |   |
|                              |     | Less than 
    1 year |           |   |