Company: SHG
Filing Date: 2025-04-23
Form Type: 20-F
Source: 0001193125-25-089950
Chunk: 6

Company: SHINHAN FINANCIAL GROUP CO LTD
Filing Date: 2025-04-23
Form: 20-F
Chunk 6
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 to Our Banking Business•We have significant exposure to small- andmedium-sizedenterprises, and financial difficulties experienced by such enterprises may result in a deterioration of our asset quality.•A decline in the value of the collateral securing our loans or our inability to fully realize the collateral value may adversely affect our credit portfolio.•Real estate project financing exposure poses significant risk, and guarantees received in connection with our real estate financing may not provide sufficient coverage.•A limited portion of our credit exposure is concentrated in a relatively small number of large corporate borrowers, and future financial difficulties experienced by them may have an adverse impact on us.•The asset quality of our retail loan portfolio may deteriorate.•Any deterioration in the asset quality of our guarantees and acceptances will likely have a material adverse effect on our financial condition and results of operations.•Risks Relating to Our Credit Card Business•Future changes in market conditions as well as other factors, such as stricter regulation, may lead to reduced revenues and deterioration in the asset quality of credit card receivables.•Risks Relating to Our Other Businesses•We may experience significant losses from our investments and, to a lesser extent, trading activities due to market fluctuations.•We may generate losses from our brokerage and other commission- andfee-basedbusiness.•Prolonged periods of declining or low interest rates or changes in related accounting standards may reduce or turn negative our investment margin on savings insurance products and result in an increase in the valuation of our liabilities associated with these products.•We may fail to realize the anticipated benefits of and encounter significant risks in connection with mergers and acquisitions.•Other Risks Relating to Us as the Holding Company•Our ability to continue to pay dividends and service debt will depend on the level of profits and cash flows of our subsidiaries.•Damage to our reputation could harm our business.•Our risk management policies and procedures may not be fully effective at all times.•Labor unrest may adversely affect our operations.•We may experience disruptions, delays and other difficulties relating to our information technology systems.•Our activities are subject to cyber security risk.•Our customers may become victims to “voice phishing” or other financial scams, for which we may be required to make monetary compensation and suffer damage to our business and reputation.•Risks Relating to Law, Regulation and Government Policy•We are a heavily regulated entity and operate in a legal and regulatory environment that is subject to change, and violations could result in penalties and other regulatory actions.4
| • |     | The Government may encourage targeted lending to certain sectors in furtherance of policy objectives, and