Company: SHG
Filing Date: 2025-04-23
Form Type: 20-F
Source: 0001193125-25-089950
Chunk: 325

Company: SHINHAN FINANCIAL GROUP CO LTD
Filing Date: 2025-04-23
Form: 20-F
Chunk 325
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.1 billion for reasons including alleged violation of internal regulations and reporting procedures in connection with Shinhan Bank’s designation as the primary bank for Seoul Metropolitan Government in 2018. In March 2021, the Financial Supervisory Service notified Shinhan Bank of an institutional caution and imposed an administrative fine of W31.2 million for alleged violation of the safety standard in operating its information system in respect of the electronic financial transaction and alleged negligence in notifying its customers of the errors occurred to the electronic financial transaction and measures taken to correct the errors. On July 31, 2023, the sanctions committee of the Financial Supervisory Service recommended a partial business suspension, a fine of W1.2 million and an administrative fine of W 174 million on Shinhan Bank in connection with Shinhan Bank’s alleged violation of regulations and reporting procedures in connection with foreign exchange transactions. In October 2024, the Financial Supervisory Service issued an institutional warning to Shinhan Bank for allegedly failing to adequately manage and supervise the anti-money laundering obligations of Shinhan Bank America. In November 2024, the Financial Supervisory Service imposed a fine of W180 million on Shinhan Bank for allegedly breaching its obligation to avoid unsound business practices by holding certain customers’ accounts without approval.

In January 2021, the Financial Services Commission imposed a fine of W28.8 million on Shinhan Card citing failure to discard personal information after transaction. On December 21, 2023, the Financial Services Commission notified Shinhan Card of an institutional caution and imposed a fine of W50 million on Shinhan Card for alleged violation of security authorization standard of its mobile application. In February 2024, the Financial Services Commission imposed a fine of W80 million on Shinhan Card for alleged violations of the duty to maintain the accuracy and timeliness of client credit information.

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In August 2019, the Financial Supervisory Service launched an investigation into Lime Asset Management Co., Ltd. (“Lime Asset”), Korea’s then largest hedge fund managing approximately W4.1 trillion in assets as of December 31, 2020, including with regards to allegations that Lime Asset had concealed the fact that it had changed the multi-manager trade finance fund’s investment method and concealed losses in their trade finance funds. Beginning in October 2019, Lime Asset suspended withdrawals from certain of its funds, freezing approximately W1.7 trillion in total as of the end of 2019, according to the Financial Supervisory Service. According to Financial