Company: SHG
Filing Date: 2025-04-23
Form Type: 20-F
Source: 0001193125-25-089950
Chunk: 407

Company: SHINHAN FINANCIAL GROUP CO LTD
Filing Date: 2025-04-23
Form: 20-F
Chunk 407
---
 and non-controlling interest holders, even when the non-controlling interests balance is reduced to below zero.

<div align='center'>F- 22</div>

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(In millions of won)

December 31, 2023 and 2024

| 3. | Material accounting policies (continued) |

| (c) | Business combinations |

i) Business combinations

A business combination is accounted for by applying the acquisition method, unless it is a combination involving entities or businesses under common control.

Each identifiable asset or liability is measured at its acquisition-date fair value except for below:

| • |     | Leases are required to be classified based on the contractual terms and other factors |

| • |     | Only those contingent liabilities assumed in a business combination that are a present obligation and can be measured reliably are recognized |

| • |     | Deferred tax assets or liabilities are recognized and measured in accordance with IAS 12,‘Income Taxes’ |

| • |     | Employee benefit arrangements are recognized and measured in accordance with IAS 19,‘Employee Benefits’ |

| • |     | Compensation assets are recognized and measured on the same basis as the items subject to compensation |

| • |     | Reacquired rights are measured in accordance with special provisions |

| • |     | Liabilities or equity instruments related to share-based payment transactions are measured in accordance with the method in IFRS 2,‘Share-based Payment’ |

| • |     | Non-currentassets held for sale are measured at fair value less costs to sell in accordance with IFRS 5,‘Non-currentAssets Held for Sale and Discontinued Operations’ |

As of the acquisition date, non-controlling interests in the acquired are measured as the non-controlling interests’ proportionate share of the acquirer’s identifiable net assets.

| (d) | Investments in associates and joint ventures |

An associate is an entity in which the Group has significant influence, but not control, over the entity’s financial and operating policies. Significant influence is presumed to exist when the Group holds between 20 and 50 percent of the voting power of another entity.

A joint venture is a joint arrangement whereby the parties that have joint control of the arrangement have rights to the net assets of the arrangement. Joint control is the contractually agreed sharing of control of an arrangement, which exists only when decisions about the relevant activities require the