Company: SHG
Filing Date: 2025-04-23
Form Type: 20-F
Source: 0001193125-25-089950
Chunk: 185

Company: SHINHAN FINANCIAL GROUP CO LTD
Filing Date: 2025-04-23
Form: 20-F
Chunk 185
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 unlisted private equity funds). The equity securities in Won held in Shinhan Bank’s investment portfolio consist of stocks listed on the KRX KOSPI Market or the KRX KOSDAQ Market of the Korea Exchange and certain non-listedstocks. Shinhan Bank sets exposure limits for most of these equity securities to manage their related risk. As of December 31, 2024, Shinhan Bank held equity securities in an aggregate amount of W1,691.9 billion in its non-tradingaccounts, including equity securities in the amount of W373.5 billion that it held, among other reasons, for management control purposes and as a result of debt-to-equityconversion as a part of reorganization proceedings of the companies to which it had extended loans. As of December 31, 2024, Shinhan Bank did not hold any Won-denominatedconvertible bonds, Won-denominatedexchangeable bonds or Won-denominatedbonds with warrants, in each case, in its non-tradingaccounts. Shinhan Bank does not measure equity risk with respect to convertible bonds, exchangeable bonds or bonds with warrants, and the interest rate risk of these equity-linked securities are measured together with the other debt securities. As such, Shinhan Bank measures interest rate risk VaRs but not equity risk VaRs for these equity-linked securities. Liquidity Risk Management Liquidity risk is the risk of insolvency, default or loss due to disparity between inflow and outflow of funds, including the risk of having to obtain funds at a high price or to dispose of securities at an unfavorable price due to lack of available funds. Each of our subsidiaries seeks to minimize liquidity risk through early detection of risk factors related to the sourcing and managing of funds that may cause volatility in liquidity and by ensuring that it maintains an appropriate level of liquidity through systematic management. At the group-wide level, we manage our liquidity risk by conducting monthly stress tests that compare liquidity requirements under normal situations against those under three types of stress situations, namely, our group-specific internal crisis, crisis in the external market and a combination of internal and external crisis. In addition, in order to preemptively and comprehensively manage liquidity risk, we measure and monitor liquidity risk management using various indices, including the “limit management index,” “early warning index” and “monitoring index.” Shinhan Bank applies the following basic principles for liquidity risk management:

| • |     | raise funds in sufficient amounts, at the optimal time at reasonable costs; |

| • |     | maintain liquidity risk at appropriate levels