Company: SHG
Filing Date: 2025-04-23
Form Type: 20-F
Source: 0001193125-25-089950
Chunk: 404

Company: SHINHAN FINANCIAL GROUP CO LTD
Filing Date: 2025-04-23
Form: 20-F
Chunk 404
---
, were certified by management on April 23, 2025.

| (b) | Basis of measurement |

The consolidated financial statements have been prepared on the historical cost basis, except for the following material items in the consolidated statement of financial position:

| • |     | derivative financial instruments measured at fair value |

| • |     | financial instruments at fair value through profit or loss measured at fair value |

| • |     | financial instruments at fair value through other comprehensive income measured at fair value |

| • |     | liabilities for cash-settled share-based payment arrangements measured at fair value |

| • |     | financial assets and liabilities designated as hedged items in a fair value hedge accounting of which changes in fair value attributable to the hedged risk recognized in profit or loss |

| • |     | liabilities for defined benefit plans recognized at the net of the total present value of defined benefit obligations less the fair value of plan assets |

| • |     | Insurance and reinsurance contract assets and liabilities measured at fair value |

| (c) | Functional and presentation currency |

The respective financial statements of the Group entities are prepared in the functional currency of the economic environment in which each individual company of group entities operate. These consolidated financial statements are presented and reported in Korean won, which is the controlling company’s functional and presentation currency.

| (d) | Use of estimates and judgments |

The preparation of the consolidated financial statements in conformity with IFRS requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. If the estimates and assumptions based on management’s best judgment as of December 31, 2024 are different from the actual environment, these estimates and actual results may be different.

Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimates are revised and in any future periods affected.

Information about critical judgments in applying accounting policies that have a significant effect on the amounts recognized in the consolidated financial statements and information about assumptions and estimation uncertainties that might have a significant risk of resulting in a material adjustment within the next financial year are described in Note 4.

<div align='center'>F- 20</div>

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(In millions of won)

December 31, 2023 and 2024

| 2. | Basis of preparation