# EDGAR Filing Document

**Accession Number:** 0001263043
**File Stem:** 0001193125-26-086690
**Filing Date:** 2026-3
**Character Count:** 1289429
**Document Hash:** 90609ce667641a05142d2e4b4d750e7c
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001193125-26-086690.hdr.sgml**: 20260303

**ACCESSION NUMBER**: 0001193125-26-086690

**CONFORMED SUBMISSION TYPE**: 6-K

**PUBLIC DOCUMENT COUNT**: 16

**CONFORMED PERIOD OF REPORT**: 20260303

**FILED AS OF DATE**: 20260303

**DATE AS OF CHANGE**: 20260303

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** SHINHAN FINANCIAL GROUP CO LTD
- **CENTRAL INDEX KEY:** 0001263043
- **STANDARD INDUSTRIAL CLASSIFICATION:** NATIONAL COMMERCIAL BANKS [6021]
- **ORGANIZATION NAME:** 02 Finance
- **EIN:** 000000000

**FILING VALUES:**
- **FORM TYPE:** 6-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-31798
- **FILM NUMBER:** 26711061

**BUSINESS ADDRESS:**
- **ADDRESS IS A NON US LOCATION:** YES
- **STREET 1:** 120 2-GA TAEPYUNG RO JUNG GU
- **CITY:** SEOUL100-102
- **PROVINCE COUNTRY:** M5
- **ZIP:** 00000
- **BUSINESS PHONE:** 82263603000

**MAIL ADDRESS:**
- **ADDRESS IS A NON US LOCATION:** YES
- **STREET 1:** 120 2-GA TAEPYUNG RO JUNG GU
- **STREET 2:** SEOUL 100-102
- **CITY:** SEOUL
- **PROVINCE COUNTRY:** M5
- **ZIP:** 00000

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**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, DC 20549**

**——————————**

**FORM 6-K**

**——————————**

**REPORT OF FOREIGN PRIVATE ISSUER**

**PURSUANT TO RULE 13a-16 OR 15d-16**

**UNDER THE SECURITIES EXCHANGE ACT OF 1934**

**For the Month of March 2026**

**Commission File Number: 001-31798**

**——————————**

**SHINHAN FINANCIAL GROUP CO., LTD.**

**(Translation of registrant's name into English)**

**——————————**

**20, Sejong-daero 9-gil, Jung-gu, Seoul 04513, Korea <br>(Address of principal executive offices)**

**——————————**

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

Form 20-F  Form 40-F 

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**<u>Submission of Audit Report (Shinhan Financial Group)</u>**

On March 3, 2026, Shinhan Financial Group disclosed audit reports for the fiscal year 2025 based on the International Financial Reporting Standards as adopted by the Republic of Korea.

The financial statements with external auditor's report are not yet approved by stockholder's meeting approval process, thus contents are subjected to be changed in the due course of the approval process.

Please refer to Exhibit 99.1 and 99.2 for Independent Auditor's Reports on consolidated and separate financial statements.

Exhibit 99.1 : Independent Consolidated Auditor's Report of Shinhan Financial Group as of December 31, 2025

Exhibit 99.2 : Independent Separate Auditor's Report of Shinhan Financial Group as of December 31, 2025

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**SIGNATURES** 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

---

| | | |
|:---|:---|:---|
|  | <u>Shinhan Financial Group Co., Ltd</u>. | <u>Shinhan Financial Group Co., Ltd</u>. |
|  | (Registrant) | (Registrant) |
| &nbsp;&nbsp;&nbsp;&nbsp;Date: March 03, 2026 | By: | /s/ JANG Jeong Hoon |
|  | Name: JANG Jeong Hoon | Name: JANG Jeong Hoon |
|  | Title: Chief Financial Officer | Title: Chief Financial Officer |

---

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## Exhibit 99.1

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**SHINHAN FINANCIAL GROUP CO., LTD.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**AND SUBSIDIARIES**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Consolidated Financial Statements**

**December 31, 2025 and 2024**

**(With Independent Auditor's Report Thereon)**

------

Contents

---

| | |
|:---|:---|
|  | **Page** |
| **Independent Auditors' Report** | 1 |
| Consolidated Statements of Financial Position | 6 |
| Consolidated Statements of Comprehensive Income | 8 |
| Consolidated Statements of Changes in Equity | 10 |
| Consolidated Statements of Cash Flows | 12 |
| Notes to the Consolidated Financial Statements | 15 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Independent Auditors' Report on Internal Control over Financial Reporting** <br>**for Consolidation Purposes** | 327 |
| ICFR Operating Status Report for Consolidation Purposes by CEO and IAM | 329 |

---

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**<u>Independent Auditors' Report</u>**

Based on a report originally issued in Korean

The Board of Directors and Stockholders

Shinhan Financial Group Co., Ltd.

*Opinion*

We have audited the consolidated financial statements of Shinhan Financial Group Co., Ltd. and its subsidiaries ("the Group"), which comprise the consolidated statements of financial position as of December 31, 2025 and 2024, the consolidated statements of comprehensive income, changes in equity and cash flows for the years then ended, and notes, comprising material accounting policies and other explanatory information.

In our opinion, the accompanying consolidated financial statements present fairly, in all material respects, the consolidated financial position of the Group as of December 31, 2025 and 2024, and its consolidated financial performance and its consolidated cash flows for the years then ended in accordance with Korean International Financial Reporting Standards ("K-IFRS").

We have also audited, in accordance with Korean Standards on Auditing ("KSAs"), the Group's Internal Control over Financial Reporting ("ICFR") as of December 31, 2025 based on the criteria established in Conceptual Framework for Designing and Operating Internal Control over Financial Reporting issued by the Operating Committee of Internal Control over Financial Reporting in the Republic of Korea, and our report dated March 3, 2026 expressed an unmodified opinion on the effectiveness of the Group's internal control over financial reporting.

*Basis for Opinion*

We conducted our audits in accordance with KSAs. Our responsibilities under those standards are further described in the Auditors' Responsibilities for the Audit of the Consolidated Financial Statements section of our report. We are independent of the Group in accordance with the ethical requirements that are relevant to our audits of the consolidated financial statements in the Republic of Korea, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinions.

*Key Audit Matters*

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the consolidated financial statement as of and for the year ended December 31, 2025. These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

(1)Assessment of allowance for credit losses for loans

As discussed in Notes 3.(h), 5.(b), and 13 to the consolidated financial statements, the Group recognized an allowance for credit losses using the Expected Credit Loss (ECL) impairment model for loans at amortized cost amounting to KRW 4,280,672 million as of December 31, 2025. A lifetime ECL is recognized for those loans that have experienced a Significant Increase in Credit Risk (SICR) since initial recognition or

------

are credit impaired, otherwise a 12-month ECL is recognized. The Group measures ECL allowances on an individual basis for individually significant corporate loans which are credit impaired and for those which have experienced a SICR and demonstrate certain other high risk indicators (including debt restructuring, total capital erosion, etc.).

The individual assessment involves judgment by the Group in estimating the future cash flows expected from collateral. The allowance for credit losses for other loans are measured on a collective basis. For these loans, the Group measures ECL based on its estimates of the Probability of Default (PD), the Loss Given Default (LGD) and the Exposure at Default (EAD) as well as the impact of Forward-Looking Information (FLI). When measuring allowance for credit losses, PD estimated considering various factors such as collateral, product and borrower type, credit rating, loan size, recovering period, etc. and LGD per recovery type are applied. For corporate loans measured on a collective basis, one of the relevant inputs for determining PD is the internal credit risk rating of the borrower. When measuring the allowance for credit losses on corporate loans, PD is determined based on borrower's internal credit risk rating, which is assessed by considering both quantitative and qualitative factors. In particular, the evaluation of qualitative factors requires a high level of judgment by the Group.

We identified the following risks in accordance with the assessment of the allowance for credit losses for loans as a key audit matter, considering likelihood of error, management judgement, and risk of material misstatement.

Risks of misstatement in the allowance for credit losses due to errors and fraud when assessing the quantitative and qualitative factors for determining internal credit risk ratings of corporate loans, measuring PD and LGD, and incorporating FLI for the collective ECL calculation.

The following are the primary audit procedures we performed to address this key audit matter.

We evaluated the design and tested the operating effectiveness of certain internal controls related to: (i) the validation of the models used to determine the inputs to the collective ECL calculation and the impact of FLI; (ii) the assessment of qualitative factors in the process of determining the internal credit risk rating of the loans; (iii) the completeness and accuracy of quantitative data used in the credit risk ratings.

We involved credit risk professionals and IT audit specialists with specialized skills, industry knowledge and relevant experience who assisted in: (i) evaluating the methodology and key judgments used in determining the PD and LGD parameters; (ii) evaluating how FLI was incorporated in the collective ECL model; and (iii) recalculating forward-looking PD and LGD on a sample basis.

We evaluated on a sample basis whether, the internal credit risk ratings of corporate loans for collective ECL calculation were assessed in accordance with the Group policy.

(2) Internally measured fair value of level 3 derivatives, and level 3 derivative-linked securities

As discussed in Notes 5.(e) to the consolidated financial statements, the Group classifies financial instruments measured at fair value using valuation techniques where one or more significant inputs are not based on observable market data as level 3 in the fair value hierarchy.

Those financial instruments measured at fair value classified as level 3 include derivatives and derivative-linked securities both held and issued by Shinhan Securities Co., Ltd. (a subsidiary of the Group), of which fair value is measured by the internally developed valuation models. The fair value of such derivative assets and liabilities as of December 31, 2025 was KRW 146,924 million and KRW 284,135 million, respectively.

Also, the fair value of such derivative-linked securities held (presented as 'financial assets at fair value through profit or loss – debt securities') and issued (presented as 'financial liabilities designated at fair value through profit or loss') as of December 31, 2025 was KRW 47,665 million and KRW 5,834,683

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million, respectively. In order to measure the fair value of these financial instruments, the Group uses valuation models such as discounted cash flow models and option models. These models use various inputs and assumptions, depending on the nature of the financial instruments.

We identified the following risk in accordance with the measurement of fair value level 3 of the derivatives and derivative-linked securities as a key audit matter considering the level of judgement;

Risks of misstatement in the fair value of the level 3 derivatives and the derivative-linked securities measured by internally developed valuation models due to inappropriate applying unobservable inputs (including volatility of underlying assets, correlations, regression coefficients, discount rates, etc.) and related assumptions.

The following are the primary audit procedures we performed to address this key audit matter.

We evaluated the design and tested the operating effectiveness of certain internal controls related to the measurement of fair value of the derivatives and derivative-linked securities. This included controls related to the development and application of the significant unobservable inputs and assumptions used in the measurement of fair values.

We involved valuation professionals with specialized skills and knowledge, who assisted in (i) evaluating unobservable inputs on a selection of the derivatives and derivative-linked securities; and (ii) developing unobservable inputs independently for a selection of the derivatives and derivative-linked securities and comparing the resulting fair value estimates to the Group's fair value measurements.

*Other matters*

The procedures and practices utilized in the Republic of Korea to audit such consolidated financial statements may differ from those generally accepted and applied in other countries.

*Responsibilities of Management and Those Charged with Governance for the Consolidated Financial Statements*

Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with K-IFRS, and for such internal control as management determines is necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the consolidated financial statements, management is responsible for assessing the Group's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Group or to cease operations, or has no realistic alternative but to do so.

Those charged with governance are responsible for overseeing the Group's financial reporting process.

*Auditors' Responsibilities for the Audit of the Consolidated Financial Statements*

Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors' report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with KSAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate,

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they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated financial statements.

As part of an audit in accordance with KSAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances

Evaluate the appropriateness of accounting policies used in the preparation of the consolidated financial statements and the reasonableness of accounting estimates and related disclosures made by management.

Conclude on the appropriateness of management's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors' report to the related disclosures in the consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors' report. However, future events or conditions may cause the Group to cease to continue as a going concern.

Evaluate the overall presentation, structure and content of the consolidated financial statements, including the disclosures, and whether the consolidated financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in the internal controls that we identify during our audit.

We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the consolidated financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditors' report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

The engagement partner on the audit resulting in this independent auditors' report is Jung-Soo Bok.

------

KPMG Samjong Accounting Corp.

Seoul, Korea

March 3, 2026

&nbsp;&nbsp;This report is effective as of March 3, 2026, the audit report date. Certain subsequent events or circumstances, which may occur between the audit report date and the time of reading this report, could have a material impact on the accompanying consolidated financial statements and notes thereto. Accordingly, the readers of the audit report should understand that the above audit report has not been updated to reflect the impact of such subsequent events or circumstances, if any.<br>

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SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Consolidated Statements of Financial Position**

As of December 31, 2025 and 2024

---

| | | | | |
|:---|:---|:---|:---|:---|
| &nbsp;&nbsp;*(In millions of won)* | &nbsp;&nbsp;**Note** |  | &nbsp;&nbsp;**2025** | &nbsp;&nbsp;**2024** |
| &nbsp;&nbsp;&nbsp;&nbsp;**Assets** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash and due from banks at amortized cost | &nbsp;&nbsp;5, 9, 13, 20 | &nbsp;&nbsp;W | &nbsp;&nbsp;39742605 | &nbsp;&nbsp;40525712 |
| &nbsp;&nbsp;&nbsp;&nbsp;Financial assets at fair value through profit or <br>loss  | &nbsp;&nbsp;5, 10, 20 |  | &nbsp;&nbsp;78053377 | &nbsp;&nbsp;72146845 |
| &nbsp;&nbsp;Derivative assets | &nbsp;&nbsp;5, 11 |  | &nbsp;&nbsp;7153950 | &nbsp;&nbsp;10279257 |
| &nbsp;&nbsp;&nbsp;&nbsp;Securities at fair value through other <br>comprehensive income | &nbsp;&nbsp;5, 12, 20 |  | &nbsp;&nbsp;103216950 | &nbsp;&nbsp;93805369 |
| &nbsp;&nbsp;&nbsp;&nbsp;Securities at amortized cost  | &nbsp;&nbsp;5, 12, 20 |  | &nbsp;&nbsp;31944368 | &nbsp;&nbsp;33315999 |
| &nbsp;&nbsp;&nbsp;&nbsp;Loans at amortized cost  | &nbsp;&nbsp;5, 13, 20 |  | &nbsp;&nbsp;464773880 | &nbsp;&nbsp;449295238 |
| &nbsp;&nbsp;Property and equipment | &nbsp;&nbsp;14, 19, 20 |  | &nbsp;&nbsp;4153186 | &nbsp;&nbsp;4157592 |
| &nbsp;&nbsp;Intangible assets | &nbsp;&nbsp;15 |  | &nbsp;&nbsp;5893158 | &nbsp;&nbsp;6120133 |
| &nbsp;&nbsp;Investments in associates | &nbsp;&nbsp;16 |  | &nbsp;&nbsp;2639202 | &nbsp;&nbsp;2752980 |
| &nbsp;&nbsp;Current tax assets |  |  | &nbsp;&nbsp;68609 | &nbsp;&nbsp;54658 |
| &nbsp;&nbsp;Deferred tax assets | &nbsp;&nbsp;46 |  | &nbsp;&nbsp;209718 | &nbsp;&nbsp;205506 |
| &nbsp;&nbsp;Investment property | &nbsp;&nbsp;17 |  | &nbsp;&nbsp;611620 | &nbsp;&nbsp;327696 |
| &nbsp;&nbsp;Net defined benefit assets | &nbsp;&nbsp;27 |  | &nbsp;&nbsp;353097 | &nbsp;&nbsp;155697  |
| &nbsp;&nbsp;Insurance contract assets | &nbsp;&nbsp;29 |  | &nbsp;&nbsp;760 | &nbsp;&nbsp;5639  |
| &nbsp;&nbsp;Reinsurance contract assets | &nbsp;&nbsp;29 |  | &nbsp;&nbsp;603442 | &nbsp;&nbsp;184754  |
| &nbsp;&nbsp;Other assets | &nbsp;&nbsp;5, 13, 18, 20 |  | &nbsp;&nbsp;46524351 | &nbsp;&nbsp;26401598 |
| &nbsp;&nbsp;Assets held for sale | &nbsp;&nbsp;21 |  | &nbsp;&nbsp;71212 | &nbsp;&nbsp;29583 |
| &nbsp;&nbsp;**Total assets** |  | &nbsp;&nbsp;W | &nbsp;&nbsp;786013485 | &nbsp;&nbsp;739764256 |

---

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SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Consolidated Statements of Financial Position (Continued)**

As of December 31, 2025 and 2024

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| | | | | |
|:---|:---|:---|:---|:---|
| &nbsp;&nbsp;*(In millions of won)* | &nbsp;&nbsp;**Note** |  | &nbsp;&nbsp;**2025** | &nbsp;&nbsp;**2024** |
| &nbsp;&nbsp;**Liabilities** |  |  |  |  |
| &nbsp;&nbsp;Deposits | &nbsp;&nbsp;5, 22 | &nbsp;&nbsp;W | &nbsp;&nbsp; 447648971 | &nbsp;&nbsp; 422781045 |
| &nbsp;&nbsp;&nbsp;&nbsp;Financial liabilities at fair value through profit <br>or loss | &nbsp;&nbsp;5, 23 |  | &nbsp;&nbsp;2312487 | &nbsp;&nbsp;954899 |
| &nbsp;&nbsp;&nbsp;&nbsp;Financial liabilities designated at fair value <br>through profit or loss | &nbsp;&nbsp;5, 24 |  | &nbsp;&nbsp;6378064 | &nbsp;&nbsp;8220475  |
| &nbsp;&nbsp;Derivative liabilities | &nbsp;&nbsp;5, 11 |  | &nbsp;&nbsp;7020846 | &nbsp;&nbsp;10058532  |
| &nbsp;&nbsp;Borrowings | &nbsp;&nbsp;5, 25 |  | &nbsp;&nbsp;55394834 | &nbsp;&nbsp;49920373  |
| &nbsp;&nbsp;Debt securities issued | &nbsp;&nbsp;5, 26 |  | &nbsp;&nbsp;92991422 | &nbsp;&nbsp;93765854  |
| &nbsp;&nbsp;Net defined benefit liabilities | &nbsp;&nbsp;27 |  | &nbsp;&nbsp;17820 | &nbsp;&nbsp;38974  |
| &nbsp;&nbsp;Provisions | &nbsp;&nbsp;28 |  | &nbsp;&nbsp;1363345 | &nbsp;&nbsp;1308896  |
| &nbsp;&nbsp;Current tax liabilities |  |  | &nbsp;&nbsp;763377 | &nbsp;&nbsp;203131  |
| &nbsp;&nbsp;Deferred tax liabilities | &nbsp;&nbsp;46 |  | &nbsp;&nbsp;446799 | &nbsp;&nbsp;423821  |
| &nbsp;&nbsp;Insurance contract liabilities | &nbsp;&nbsp;29 |  | &nbsp;&nbsp;50471303 | &nbsp;&nbsp;51124629  |
| &nbsp;&nbsp;Reinsurance contract liabilities | &nbsp;&nbsp;29 |  | &nbsp;&nbsp;56378 | &nbsp;&nbsp;98063  |
| &nbsp;&nbsp;Investment contract liabilities | &nbsp;&nbsp;5, 31 |  | &nbsp;&nbsp;1536393 | &nbsp;&nbsp;1165022  |
| &nbsp;&nbsp;Other liabilities | &nbsp;&nbsp;5, 32 |  | &nbsp;&nbsp;59237657 | &nbsp;&nbsp;40879509 |
| &nbsp;&nbsp;Liabilities held for sale | &nbsp;&nbsp;21 |  | &nbsp;&nbsp;1465 | &nbsp;&nbsp;- |
| &nbsp;&nbsp;**Total liabilities** |  |  | &nbsp;&nbsp;725641161 | &nbsp;&nbsp;680943223 |
| &nbsp;&nbsp;**Equity** | &nbsp;&nbsp;33 |  |  |  |
| &nbsp;&nbsp;Capital stock |  |  | &nbsp;&nbsp;2969641  | &nbsp;&nbsp;2969641  |
| &nbsp;&nbsp;Hybrid bonds |  |  | &nbsp;&nbsp;4749837  | &nbsp;&nbsp;4600121  |
| &nbsp;&nbsp;Capital surplus |  |  | &nbsp;&nbsp;12098558  | &nbsp;&nbsp;12094968  |
| &nbsp;&nbsp;Capital adjustments |  |  | &nbsp;&nbsp;(1180080) | &nbsp;&nbsp;(807114) |
| &nbsp;&nbsp;Accumulated other comprehensive loss |  |  | &nbsp;&nbsp;(2474813) | &nbsp;&nbsp;(1824440) |
| &nbsp;&nbsp;Retained earnings  |  |  | &nbsp;&nbsp;41796129  | &nbsp;&nbsp;39020580 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total equity attributable to equity holders of<br>Shinhan Financial Group Co., Ltd. |  |  | &nbsp;&nbsp;57959272 | &nbsp;&nbsp;56053756 |
| &nbsp;&nbsp;Non-controlling interests |  |  | &nbsp;&nbsp;2413052  | &nbsp;&nbsp;2767277 |
| &nbsp;&nbsp;**Total equity** |  |  | &nbsp;&nbsp;60372324  | &nbsp;&nbsp;58821033 |
| &nbsp;&nbsp;**Total liabilities and equity** |  | &nbsp;&nbsp;W | &nbsp;&nbsp;786013485 | &nbsp;&nbsp;739764256 |

---

*See accompanying notes to the consolidated financial statements.*

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SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Consolidated Statements of Comprehensive Income**

For the years ended December 31, 2025 and 2024

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| | | | | |
|:---|:---|:---|:---|:---|
| *(In millions of won)* | **Note** |  | **2025** | **2024** |
| &nbsp;&nbsp;&nbsp;Interest income |  | W | 27988801  | 29209338 |
| &nbsp;&nbsp;&nbsp;Interest expense |  |  | (16294345) | (17807036) |
| &nbsp;&nbsp;&nbsp;**Net interest income** | 36 |  | 11694456 | 11402302 |
| &nbsp;&nbsp;&nbsp;Fees and commission income |  |  | 4564323  | 4295366 |
| &nbsp;&nbsp;&nbsp;Fees and commission expense |  |  | (1643112) | (1580492) |
| &nbsp;&nbsp;&nbsp;**Net fees and commission income** | 37 |  | 2921211 | 2714874 |
| &nbsp;&nbsp;&nbsp;Insurance income |  |  | 3364322  | 3116553 |
| &nbsp;&nbsp;&nbsp;Reinsurance income |  |  | 202299  | 73578 |
| &nbsp;&nbsp;&nbsp;Insurance service expenses |  |  | (2321814) | (2131560) |
| &nbsp;&nbsp;&nbsp;Reinsurance service expenses |  |  | (189080) | (75405) |
| &nbsp;&nbsp;&nbsp;**Net insurance income** | 29 |  | 1055727 | 983166 |
| &nbsp;&nbsp;&nbsp;Insurance finance income |  |  | 44087  | 202363 |
| &nbsp;&nbsp;&nbsp;Insurance finance expenses |  |  | (1235282) | (301802) |
| &nbsp;&nbsp;&nbsp;**Net insurance finance expense** | 30 |  | (1191195) | (99439) |
| &nbsp;&nbsp;&nbsp;Dividend income | 38 |  | 209681  | 239097 |
| &nbsp;&nbsp;&nbsp;&nbsp;Net gain on financial instruments at fair value <br>through profit or loss  | 39 |  | 2409365  | 1210771 |
| &nbsp;&nbsp;&nbsp;&nbsp;Net loss on financial instruments designated at fair<br> value through profit or loss | 40 |  | (413948) | (344453) |
| &nbsp;&nbsp;&nbsp;Net gain on foreign currency transaction |  |  | 875962  | 510985 |
| &nbsp;&nbsp;&nbsp;&nbsp;Net gain on disposal of securities at fair value <br>through other comprehensive income | 12 |  | 193612  | 60260 |
| &nbsp;&nbsp;&nbsp;Net loss on disposal of securities at amortized cost | 12 |  | (56) | (23155) |
| &nbsp;&nbsp;&nbsp;Provision for credit loss allowance | 41 |  | (2002965) | (2013274) |
| &nbsp;&nbsp;&nbsp;General and administrative expenses | 42 |  | (6402500) | (6116240) |
| &nbsp;&nbsp;&nbsp;Other operating expenses, net | 44 |  | (2325993) | (2066224) |
| &nbsp;&nbsp;&nbsp;**Operating income** |  |  | 7023357 | 6458670 |
| &nbsp;&nbsp;&nbsp;Equity method income (loss) | 16 |  | 221225 | (23822) |
| &nbsp;&nbsp;&nbsp;Other non-operating expense | 45 |  | (315573) | (405756) |
| &nbsp;&nbsp;&nbsp;**Profit before income taxes** |  |  | 6929009 | 6029092 |
| &nbsp;&nbsp;&nbsp;Income tax expense | 46 |  | 1844490  | 1470922 |
| &nbsp;&nbsp;&nbsp;**Profit for the year** |  | W | 5084519  | 4558170 |

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SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Consolidated Statements of Comprehensive Income (Continued)** 

For the years ended December 31, 2025 and 2024

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| | | | | |
|:---|:---|:---|:---|:---|
| *(In millions of won, except earnings per share data)* | **Note** |  | **2025** | **2024** |
| &nbsp;&nbsp;**Other comprehensive income (loss) for the year, net of income tax** | 33 |  |  |  |
| Items that are or may be reclassified to profit or loss: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Valuation gain (loss) on securities at fair value<br> through other comprehensive income |  | W | (1600292) | 1146623 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Equity in other comprehensive income (loss) of<br> associates |  |  | (16736) | 6671 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Foreign currency translation adjustments for foreign <br>operations |  |  | (144288) | 416182 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net change in unrealized fair value of cash flow <br>hedges |  |  | (173103) | 38514 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net finance income (expense) on insurance contract<br> assets (liabilities) |  |  | 1268886  | (2334235) |
| &nbsp;&nbsp;&nbsp;&nbsp;Net finance expense on reinsurance contract assets<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (liabilities) |  |  | (153683) | (1523) |
|  |  |  | (819216) | (727768) |
| Items that will not be reclassified to profit or loss: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Remeasurements of the net defined benefit<br> liabilities (assets) |  |  | 5324  | (62143) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Valuation gain on securities at fair value <br>through other comprehensive income |  |  | 160107  | 43258 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gain on disposal of securities at fair value <br>through other comprehensive income |  |  | 2923  | 7329 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Changes in own credit risk on financial liabilities <br>designated at fair value through profit or loss |  |  | (2652) | (6341) |
|  |  |  | 165702 | (17897) |
| &nbsp;&nbsp;&nbsp;&nbsp;Total other comprehensive income (loss), net of<br> income tax |  |  | (653514) | (745665) |
| **Total comprehensive income for the year** |  | W | 4431005 | 3812505 |
| **Profit attributable to:** |  |  |  |  |
| Equity holders of Shinhan Financial Group Co., Ltd. | 33, 47 | W | 4971561 | 4450177 |
| Non-controlling interests |  |  | 112958 | 107993 |
|  |  | W | 5084519 | 4558170 |
| **Total comprehensive income attributable to:** |  |  |  |  |
| Equity holders of Shinhan Financial Group Co., Ltd. |  | W | 4320358 | 3702863 |
| Non-controlling interests |  |  | 110647 | 109642 |
|  |  | W | 4431005 | 3812505 |
| **Earnings per share:** | 33, 47 |  |  |  |
| Basic and diluted earnings per share in won |  | W | 9812 | 8441 |

---

*See accompanying notes to the consolidated financial statements.*

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Consolidated Statements of Changes in Equity**

For the years ended December 31, 2025 and 2024

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of won)* |  | **Equity attributable to equity holders of Shinhan Financial Group Co., Ltd.** | **Equity attributable to equity holders of Shinhan Financial Group Co., Ltd.** | **Equity attributable to equity holders of Shinhan Financial Group Co., Ltd.** | **Equity attributable to equity holders of Shinhan Financial Group Co., Ltd.** | **Equity attributable to equity holders of Shinhan Financial Group Co., Ltd.** | **Equity attributable to equity holders of Shinhan Financial Group Co., Ltd.** | **Equity attributable to equity holders of Shinhan Financial Group Co., Ltd.** |  |  |
|  |  | **Capital** <br>**stock** | **Hybrid** <br>**bonds** | &nbsp;&nbsp;**Capital**<br>**surplus** | **Capital**<br>**adjustments** | **Accumulated** <br>**other compre-hensive income (loss)** | **Retained earnings** | **Sub-total** | **Non-controlling interests** | **Total** |
| **Balance at January 1, 2024** | W | 2969641 | 4001731  | 12094968  | (658664) | (1074453) | 36387314  | 53720537  | 2601328  | 56321865  |
| **Profit for the year** |  | - | - | - | - | - | 4450177 | 4450177 | 107993 | 4558170 |
| &nbsp;&nbsp;&nbsp;**Other comprehensive income (loss), net of income tax:** |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loss on valuation and disposal of securities at fair value <br>through other comprehensive income |  | - | - | - | - | 1196353 | - | 1196353 | 857 | 1197210 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Equity in other comprehensive income (loss) of associates |  | - | - | - | - | 6671 | - | 6671 | - | 6671 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Foreign currency translation adjustments for foreign<br> operations |  | - | - | - | - | 415006 | - | 415006 | 1176 | 416182 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net change in unrealized fair value of cash flow hedges |  | - | - | - | - | 38514 | - | 38514 | - | 38514 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net finance expense on insurance contract assets <br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(liabilities) |  | - | - | - | - | (2334235) | - | (2334235) | - | (2334235) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net finance expense on reinsurance contract assets<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (liabilities) |  | - | - | - | - | (1523) | - | (1523) | - | (1523) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Remeasurements of the net defined benefit liabilities <br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(assets) |  | - | - | - | - | (61759) | - | (61759) | (384) | (62143) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Changes in own credit risk on financial liabilities<br> designated at fair value through profit or loss |  | - | - | - | - | (6341) | - | (6341) | - | (6341) |
| &nbsp;&nbsp;&nbsp;Total other comprehensive income (loss) |  | - | - | - | - | (747314) | - | (747314) | 1649 | (745665)  |
| &nbsp;&nbsp;&nbsp;**Total comprehensive income (loss)**  |  | - | - | - | - | (747314) | 4450177 | 3702863 | 109642 | 3812505 |
| &nbsp;&nbsp;&nbsp;**Other changes in equity** |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Dividends |  | - | - | - | - | - | (268697) | (268697) | - | (268697) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interim dividends |  | - | - | - | - | - | (820287) | (820287) | - | (820287) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Dividends to hybrid bonds |  | - | - | - | - | - | (176945) | (176945) | - | (176945) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Issuance of hybrid bonds (Note 33) |  | - | 797866  | - | - | - | - | 797866 | - | 797866 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Redemption of hybrid bonds (Note 33) |  | - | (199476) | - | (524) | - | - | (200000) | - | (200000) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Transfer to retained earnings of redemption loss of hybrid<br> bonds |  | - | - | - | 102667  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <br>- | (102667) | - | - | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Acquisition of treasury stock (Note 33) |  | - | - | - | (700000) | - | - | (700000) | - | (700000) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Disposal of treasury stock (Note 33) |  | - | - | - | 297  | - | - | 297 | - | 297 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Retirement of treasury stock (Note 33) |  | - | - | - | 450000  | - | (450102) | (102) | - | (102) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Change in other capital adjustments |  | - | - | - | (890) | - | (886) | (1776) | - | (1776) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Change in other non-controlling interests |  | - | - | - | - | - | - | - | 56307 | 56307 |
|  |  | - | 598390 | - | (148450) | - | (1819584) | (1369644) | 56307 | (1313337) |
| **Reclassification of OCI to retained earnings** |  | - | - | - | - | (2673) | 2673 | - | - | - |
| **Balance at December 31, 2024** | W | 2969641 | 4600121  | 12094968  | (807114) | (1824440) | 39020580 | 56053756 | 2767277 | 58821033 |

---

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Consolidated Statements of Changes in Equity**

For the years ended December 31, 2025 and 2024

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Consolidated Statements of Changes in Equity (Continued)**

For the years ended December 31, 2025 and 2024

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of won)* |  | **Equity attributable to equity holders of Shinhan Financial Group Co., Ltd.** | **Equity attributable to equity holders of Shinhan Financial Group Co., Ltd.** | **Equity attributable to equity holders of Shinhan Financial Group Co., Ltd.** | **Equity attributable to equity holders of Shinhan Financial Group Co., Ltd.** | **Equity attributable to equity holders of Shinhan Financial Group Co., Ltd.** | **Equity attributable to equity holders of Shinhan Financial Group Co., Ltd.** | **Equity attributable to equity holders of Shinhan Financial Group Co., Ltd.** |  |  |
|  |  | **Capital** <br>**stock** | **Hybrid** <br>**bonds** | &nbsp;&nbsp;**Capital**<br>**surplus** | **Capital**<br>**adjustments** | **Accumulated** <br>**other compre-hensive income (loss)** | **Retained earnings** | **Sub-total** | **Non-controlling interests** | **Total** |
| **Balance at January 1, 2025** | W | 2969641 | 4600121  | 12094968  | (807114) | (1824440) | 39020580 | 56053756 | 2767277 | 58821033 |
| **Profit for the year** |  | - | - | - | - | - | 4971561  | 4971561  | 112958  | 5084519  |
| &nbsp;&nbsp;&nbsp;**Other comprehensive income (loss), net of income tax:** |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loss on valuation and disposal of securities at fair value<br> through other comprehensive income |  | - | - | - | - | (1435546) | - | (1435546) | (1716) | (1437262) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Equity in other comprehensive income (loss) of associates |  | - | - | - | - | (16736) | - | (16736) | - | (16736) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Foreign currency translation adjustments for foreign <br>operations |  | - | - | - | - | (143950) | - | (143950) | (338) | (144288) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net change in unrealized fair value of cash flow hedges |  | - | - | - | - | (173103) | - | (173103) | - | (173103) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net finance expense on insurance contract assets <br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(liabilities) |  | - | - | - | - | 1268886  | - | 1268886  | - | 1268886  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net finance expense on reinsurance contract assets <br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(liabilities) |  | - | - | - | - | (153683) | - | (153683) | - | (153683) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Remeasurements of the net defined benefit liabilities <br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(assets) |  | - | - | - | - | 5581  | - | 5581  | (257) | 5324  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Changes in own credit risk on financial liabilities <br>designated at fair value through profit or loss |  | - | - | - | - | (2652) | - | (2652) | - | (2652) |
| &nbsp;&nbsp;&nbsp;Total other comprehensive income (loss) |  | - | - | - | - | (651203) | - | (651203) | (2311) | (653514) |
| &nbsp;&nbsp;&nbsp;**Total comprehensive income (loss)**  |  | - | - | - | - | (651203) | 4971561  | 4320358  | 110647  | 4431005  |
| &nbsp;&nbsp;&nbsp;**Other changes in equity** |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Dividends |  | - | - | - | - | - | (267755) | (267755) | - | (267755) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interim dividends |  | - | - | - | - | - | (828228) | (828228) | - | (828228) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Dividends to hybrid bonds |  | - | - | - | - | - | (197932) | (197932) | - | (197932) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Issuance of hybrid bonds (Note 33) |  | - | 797870  | - | - | - | - | 797870  | - | 797870  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Redemption of hybrid bonds (Note 33) |  | - | (648154) | - | (1846) | - | - | (650000) | - | (650000) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Transfer to retained earnings of redemption loss of hybrid<br>bonds |  | - | - | - | 524  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- | (524) | - | - | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Acquisition of treasury stock (Note 33) |  | - | - | - | (1250001) | - | - | (1250001) | - | (1250001) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Retirement of treasury stock (Note 33) |  | - | - | - | 900000  | - | (900070) | (70) | - | (70) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Change in other capital adjustments |  | - | - | 3590  | (21643) | - | (673) | (18726) | - | (18726) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Change in other non-controlling interests |  | - | - | - | - | - | - | - | (464872) | (464872) |
|  |  | - | 149716  | 3590  | (372966) | - | (2195182) | (2414842) | (464872) | (2879714) |
| **Reclassification of OCI to retained earnings** |  | - | - | - | - | 830  | (830) | - | - | - |
| **Balance at December 31, 2025** | W | 2969641  | 4749837  | 12098558  | (1180080) | (2474813) | 41796129  | 57959272  | 2413052  | 60372324  |

---

*See accompanying notes to the consolidated financial statements.*

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Consolidated Statements of Cash Flows**

For the years ended December 31, 2025 and 2024

---

| | | | | |
|:---|:---|:---|:---|:---|
| *(In millions of won)* | **Note** |  | **2025** | **2024** |
| **Cash flows from operating activities** |  |  |  |  |
| Profit for the year |  | W | 5084519 | 4558170 |
| Adjustments for: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest income | 36 |  | (27988801) | (29209338) |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest expense | 36 |  | 16294345  | 17807036 |
| &nbsp;&nbsp;&nbsp;&nbsp;Dividend income | 38 |  | (209681) | (239097) |
| &nbsp;&nbsp;&nbsp;&nbsp;Income tax expense | 46 |  | 1844490  | 1470922 |
| &nbsp;&nbsp;&nbsp;&nbsp;Net fees and commission expense | 37 |  | 378283  | 330896 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net insurance income | 30 |  | (1055727) | (983166) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net insurance finance expense | 30 |  | 1191195  | 99439 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net gain on financial instruments at fair value through profit or loss  | 39 |  | (846030) | (678697) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net gain on derivatives | 11 |  | (510524) | (82184) |
| &nbsp;&nbsp;&nbsp;&nbsp;Net gain on foreign currency translation  |  |  | (284765) | (107294) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net loss (gain) on financial instruments designated at fair value<br>through profit or loss  | 40 |  | (43372) | 35604 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net gain on disposal of securities at fair value through other<br>comprehensive income  | 12 |  | (193612) | (60260) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Provision for allowance for credit loss | 41 |  | 2002965  | 2013274 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net loss on disposal of securities at amortized cost | 12 |  | 56  | 23155 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Employee benefit | 27 |  | 238848  | 157711 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation and other amortization | 42 |  | 1295085  | 1280382 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other operating expense  | 44 |  | 815185  | 687447 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Equity method loss (income), net | 16 |  | (221225) | 23822 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other non-operating expense | 45 |  | 265392  | 323593 |
|  |  |  | (7027893) | (7106755) |
| Changes in assets and liabilities: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Due from banks at amortized cost |  |  | 731113 | (408314) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Securities at fair value through profit or loss |  |  | (2887391) | (159581) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deposits at fair value through profit or loss |  |  | 1053  | (5418) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loans at fair value through profit or loss |  |  | 380767  | (138009) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Financial instruments designated at fair value through profit or loss |  |  | (1853330) | 379352 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Derivative instruments |  |  | 378311  | (83294) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loans at amortized cost  |  |  | (17106486) | (34952582) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Insurance contract assets |  |  | 4879  | 5015 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Reinsurance contract assets |  |  | (418688) | (96401) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other assets |  |  | (20923665) | 2036969 |

---

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Consolidated Statements of Cash Flows (Continued)**

For the years ended December 31, 2025 and 2024

---

| | | | | |
|:---|:---|:---|:---|:---|
| *(In millions of won)* | **Note** |  | **2025** | **2024** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deposits |  | W | 24093267  | 38873523 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net defined benefit liabilities |  |  | (413143) | (246347) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Provisions |  |  | (169300) | (505457) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Insurance contract liabilities |  |  | (409819) | (916060) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Reinsurance contract liabilities |  |  | (226184) | 936 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investment contract liabilities |  |  | 332236  | (467655) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other liabilities |  |  | 18745622  | (8626434) |
|  |  |  | 259242 | (5309757) |
| &nbsp;&nbsp;&nbsp;&nbsp;Income taxes paid |  |  | (1076814) | (1030947) |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest received |  |  | 27043508  | 28511378 |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest paid |  |  | (14749663) | (15218677) |
| &nbsp;&nbsp;&nbsp;&nbsp;Dividends received |  |  | 197982  | 222887 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Net cash inflow from operating activities** |  |  | 9730881 | 4626299 |
| **Cash flows from investing activities** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proceeds from disposal of financial instruments at fair value through <br>profit or loss |  |  | 4584365  | 5846223 |
| &nbsp;&nbsp;Acquisition of financial instruments at fair value through profit or loss |  |  | (4963361) | (7043560) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proceeds from disposal of securities at fair value through other<br>comprehensive income  |  |  | 50955576  | 44576886 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Acquisition of securities at fair value through other comprehensive<br>income  |  |  | (61673847) | (44514955) |
| &nbsp;&nbsp;&nbsp;&nbsp;Proceeds from disposal of securities at amortized cost  |  |  | 7073830  | 7646004 |
| &nbsp;&nbsp;&nbsp;&nbsp;Acquisition of securities at amortized cost |  |  | (5478916) | (5109510) |
| &nbsp;&nbsp;&nbsp;&nbsp;Proceeds from disposal of property and equipment | 14, 45 |  | 7729  | 6652 |
| &nbsp;&nbsp;&nbsp;&nbsp;Acquisition of property and equipment | 14 |  | (258659) | (263836) |
| &nbsp;&nbsp;&nbsp;&nbsp;Proceeds from disposal of intangible assets | 15, 45 |  | 14445  | 8102 |
| &nbsp;&nbsp;&nbsp;&nbsp;Acquisition of intangible assets | 15 |  | (378410) | (514938) |
| &nbsp;&nbsp;&nbsp;&nbsp;Proceeds from disposal of investments in associates | 16 |  | 601006  | 326439 |
| &nbsp;&nbsp;&nbsp;&nbsp;Acquisition of investments in associates | 16 |  | (239959) | (662106) |
| &nbsp;&nbsp;&nbsp;&nbsp;Net cash inflow from loss of control |  |  | 98267  | - |
| &nbsp;&nbsp;&nbsp;&nbsp;Net cash outflow from acquisition of control |  |  | (947246) | - |
| &nbsp;&nbsp;&nbsp;&nbsp;Proceeds from disposal of investment property | 17, 45 |  | 9128  | 5281 |
| &nbsp;&nbsp;&nbsp;&nbsp;Acquisition of investment property | 17 |  | (4564) | (3202) |
| &nbsp;&nbsp;&nbsp;&nbsp;Proceeds from disposal of assets held for sale |  |  | 48867 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;Change in other assets |  |  | (5264) | 31741 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proceeds from settlement of hedging derivative financial<br>instruments  |  |  | 42920  | 50300  |
| &nbsp;&nbsp;&nbsp;&nbsp;Payment of settlement of hedging derivative financial instruments  |  |  | (265683) | (236988) |
| &nbsp;&nbsp;&nbsp;&nbsp;Net cash flows from business combinations | 52 |  | (124004) | - |
| **Net cash inflow (outflow) from investing activities** |  |  | (10903780) | 148533 |

---

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Consolidated Statements of Cash Flows (Continued)**

For the years ended December 31, 2025 and 2024

---

| | | | | |
|:---|:---|:---|:---|:---|
| *(In millions of won)* | **Note** |  | **2025** | **2024** |
| **Cash flows from financing activities** |  |  |  |  |
| &nbsp;&nbsp;Issuance of hybrid bonds |  | W | 797870  | 797866 |
| &nbsp;&nbsp;Redemption of hybrid bonds |  |  | (650000) | (200000) |
| &nbsp;&nbsp;&nbsp;Net change in borrowings |  |  | 5125412  | (8231239) |
| &nbsp;&nbsp;&nbsp;&nbsp;Proceeds from debt securities issued |  |  | 44481665  | 54660582 |
| &nbsp;&nbsp;&nbsp;&nbsp;Redemption of debt securities issued |  |  | (45234727) | (45082555) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Increase in financial liabilities designated at fair value through profit<br>or loss |  |  | 99985  | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Decrease in financial liabilities designated at fair value through profit<br> or loss |  |  | (50000) | - |
| &nbsp;&nbsp;&nbsp;&nbsp;Changes in other liabilities |  |  | (95556) | (61797) |
| &nbsp;&nbsp;&nbsp;&nbsp;Dividends paid |  |  | (1293828) | (1267146) |
| &nbsp;&nbsp;&nbsp;&nbsp;Proceeds from settlement of hedging derivative financial instruments  |  |  | 2705549  | 2774765 |
| &nbsp;&nbsp;&nbsp;&nbsp;Payments of settlement of hedging derivative financial instruments  |  |  | (2556770) | (2655404) |
| &nbsp;&nbsp;&nbsp;&nbsp;Acquisition of treasury stock |  |  | (1250001) | (700000) |
| &nbsp;&nbsp;&nbsp;&nbsp;Disposal of treasury stock |  |  | - | 297 |
| &nbsp;&nbsp;&nbsp;&nbsp;Expense for retirement of treasury stock |  |  | (69) | (102) |
| &nbsp;&nbsp;&nbsp;&nbsp;Increase (decrease) in non-controlling interests |  |  | (547355) | 54717 |
| &nbsp;&nbsp;&nbsp;&nbsp;Repayments of lease liabilities  |  |  | (281530) | (272634) |
| **Net cash inflow (outflow) from financing activities** |  |  | 1250645 | (182650) |
| &nbsp;&nbsp;**Effect of exchange rate changes on cash and cash equivalents held** |  |  | (26857) | 238477 |
| **Increase in cash and cash equivalents** |  |  | 50889 | 4830659 |
| **Cash and cash equivalents included in assets held for sale** | 21, 49 |  | (3309) | - |
| **Cash and cash equivalents at beginning of year** | 49 |  | 35247543 | 30416884 |
| **Cash and cash equivalents at end of year** | 49 | W | 35295123 | 35247543 |

---

*See accompanying notes to the consolidated financial statements.*

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SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

**1. <u>Reporting entity</u>**

Shinhan Financial Group Co., Ltd., the controlling company, and its subsidiaries included in consolidation (collectively the "Group") are summarized as follows:

(a) Controlling company

Shinhan Financial Group Co., Ltd. (the "Shinhan Financial Group" or the "Company"), the controlling company, is incorporated on September 1, 2001 for the main purposes of controlling, managing and funding Shinhan Bank, Shinhan Securities Co., Ltd., Shinhan Capital Co., Ltd. and Shinhan Asset Management Co., Ltd. by way of share transfers. The total capital stock amounted to W1,461,721 million. Also, Shinhan Financial Group's shares have been listed on the Korea Exchange since September 10, 2001 and Shinhan Financial Group's American Depositary Shares have been registered with the Securities and Exchange Commission (SEC) and listed on the New York Stock Exchange since September 16, 2003.

(b) Ownership of Shinhan Financial Group and its major consolidated subsidiaries as of December 31, 2025 and 2024 are as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  |  |  | **Date of financial information** | **Ownership (%)** | **Ownership (%)** |
| **Investor** | **Investee (\*1)** | **Location** | **Date of financial information** | **December 31, 2025** | **December 31, 2024** |
| &nbsp;&nbsp;&nbsp;Shinhan Financial<br>Group Co., Ltd. | &nbsp;&nbsp;&nbsp;Shinhan Bank | Korea | December 31 | 100.0 | 100.0 |
| &nbsp;&nbsp;&nbsp;〃 | &nbsp;&nbsp;&nbsp;Shinhan Card Co., Ltd. | 〃 | 〃 | 100.0 | 100.0 |
| &nbsp;&nbsp;&nbsp;〃 | &nbsp;&nbsp;&nbsp;Shinhan Securities Co., Ltd. | 〃 | 〃 | 100.0 | 100.0 |
| &nbsp;&nbsp;&nbsp;〃 | &nbsp;&nbsp;&nbsp;Shinhan Life Insurance Co., Ltd. | 〃 | 〃 | 100.0 | 100.0 |
| &nbsp;&nbsp;&nbsp;〃 | &nbsp;&nbsp;&nbsp;Shinhan Capital Co., Ltd. | 〃 | 〃 | 100.0 | 100.0 |
| &nbsp;&nbsp;&nbsp;〃 | &nbsp;&nbsp;&nbsp;Jeju Bank (\*2) | 〃 | 〃 | 64.0 | 75.3 |
| &nbsp;&nbsp;&nbsp;〃 | &nbsp;&nbsp;&nbsp;Shinhan Asset Management Co., Ltd.  | 〃 | 〃 | 100.0 | 100.0 |
| &nbsp;&nbsp;&nbsp;〃 | &nbsp;&nbsp;&nbsp;SHC Management Co., Ltd. | 〃 | 〃 | 100.0 | 100.0 |
| &nbsp;&nbsp;&nbsp;〃 | &nbsp;&nbsp;&nbsp;Shinhan DS | 〃 | 〃 | 100.0 | 100.0 |
| &nbsp;&nbsp;&nbsp;〃 | &nbsp;&nbsp;&nbsp;Shinhan Savings Bank | 〃 | 〃 | 100.0 | 100.0 |
| &nbsp;&nbsp;&nbsp;〃 | &nbsp;&nbsp;&nbsp;Shinhan Asset Trust Co., Ltd. | 〃 | 〃 | 100.0 | 100.0 |
| &nbsp;&nbsp;&nbsp;〃 | &nbsp;&nbsp;&nbsp;Shinhan Fund Partners Co., Ltd. | 〃 | 〃 | 99.8 | 99.8 |
| &nbsp;&nbsp;&nbsp;〃 | &nbsp;&nbsp;&nbsp;Shinhan REITs Management Co., Ltd. | 〃 | 〃 | 100.0 | 100.0 |
| &nbsp;&nbsp;&nbsp;〃 | &nbsp;&nbsp;&nbsp;Shinhan Venture Investment Co., Ltd. | 〃 | 〃 | 100.0 | 100.0 |
| &nbsp;&nbsp;&nbsp;〃 | &nbsp;&nbsp;&nbsp;Shinhan EZ General Insurance Co.,<br> Ltd. (\*3) | 〃 | 〃 | 91.7 | 85.1 |
| &nbsp;&nbsp;&nbsp;Shinhan Bank | &nbsp;&nbsp;&nbsp;Shinhan Bank America | USA | 〃 | 100.0 | 100.0 |
| &nbsp;&nbsp;&nbsp;〃 | &nbsp;&nbsp;&nbsp;Shinhan Bank Europe GmbH | Germany | 〃 | 100.0 | 100.0 |
| &nbsp;&nbsp;&nbsp;〃 | &nbsp;&nbsp;&nbsp;Shinhan Bank Cambodia | Cambodia | 〃 | 97.5 | 97.5 |
| &nbsp;&nbsp;&nbsp;〃 | &nbsp;&nbsp;&nbsp;Shinhan Bank Kazakhstan Limited | Kazakhstan | 〃 | 100.0 | 100.0 |
| &nbsp;&nbsp;&nbsp;〃 | &nbsp;&nbsp;&nbsp;Shinhan Bank Canada | Canada | 〃 | 100.0 | 100.0 |
| &nbsp;&nbsp;&nbsp;〃 | &nbsp;&nbsp;&nbsp;Shinhan Bank (China) Limited | China | 〃 | 100.0 | 100.0 |
| &nbsp;&nbsp;&nbsp;〃 | &nbsp;&nbsp;&nbsp;Shinhan Bank Japan | Japan | 〃 | 100.0 | 100.0 |
| &nbsp;&nbsp;&nbsp;〃 | &nbsp;&nbsp;&nbsp;Shinhan Bank Vietnam Limited | Vietnam | 〃 | 100.0 | 100.0 |
| &nbsp;&nbsp;&nbsp;〃 | &nbsp;&nbsp;&nbsp;Banco Shinhan de Mexico | Mexico | 〃 | 99.9 | 99.9 |
| &nbsp;&nbsp;&nbsp;〃 | &nbsp;&nbsp;&nbsp;PT Bank Shinhan Indonesia | Indonesia | 〃 | 99.0 | 99.0 |
| &nbsp;&nbsp;&nbsp;KIRAM HO CHI MINH OFFICE General Private Placement Real Estate Investment Trust (USD) | &nbsp;&nbsp;&nbsp;HIEP HIEP THANH Investment Company Limited (\*4) | Vietnam | 〃 | 100.0 | - |
| &nbsp;&nbsp;&nbsp;HIEP HIEP THANH Investment<br>Company Limited | &nbsp;&nbsp;&nbsp;Khoi Phat Investment Company Limited (\*4) | Vietnam | 〃 | 100.0 | - |
| &nbsp;&nbsp;&nbsp;Shinhan Bank Japan | &nbsp;&nbsp;&nbsp;SBJDNX (\*5) | Japan | 〃 | 90.0 | 100.0 |

---

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SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

**1. <u>Reporting entity (continued)</u>**

(b) Ownership of Shinhan Financial Group and its major consolidated subsidiaries as of December 31, 2025 and 2024 are as follows (continued):

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  |  |  | **Date of financial information** | **Ownership (%)** | **Ownership (%)** |
| **Investor** | **Investee (\*1)** | **Location** | **Date of financial information** | **December 31, 2025** | **December 31, 2024** |
| &nbsp;&nbsp;&nbsp;Shinhan Card Co., Ltd. | &nbsp;&nbsp;&nbsp;Shinhan Credit Information Co., Ltd. | Korea | December 31 | 100.0 | 100.0 |
| &nbsp;&nbsp;&nbsp;〃 | &nbsp;&nbsp;&nbsp;LLP MFO Shinhan Finance (\*6) | Kazakhstan | 〃 | 72.1 | 75.0 |
| &nbsp;&nbsp;&nbsp;〃 | &nbsp;&nbsp;&nbsp;PT. Shinhan Indo Finance | Indonesia | 〃 | 76.3 | 76.3 |
| &nbsp;&nbsp;&nbsp;〃 | &nbsp;&nbsp;&nbsp;Shinhan Microfinance Co., Ltd. | Myanmar | 〃 | 100.0 | 100.0 |
| &nbsp;&nbsp;&nbsp;〃 | &nbsp;&nbsp;&nbsp;Shinhan Vietnam Finance Co., Ltd. | Vietnam | 〃 | 100.0 | 100.0 |
| &nbsp;&nbsp;&nbsp;Shinhan Securities Co.,<br> Ltd. | &nbsp;&nbsp;&nbsp;Shinhan Securities America Inc. (\*7) | USA | 〃 | 100.0 | 100.0 |
| &nbsp;&nbsp;&nbsp;〃 | &nbsp;&nbsp;&nbsp;Shinhan Securities Asia Ltd. | Hong Kong | 〃 | 100.0 | 100.0 |
| &nbsp;&nbsp;&nbsp;〃 | &nbsp;&nbsp;&nbsp;Shinhan Securities Vietnam Co., Ltd. | Vietnam | 〃 | 100.0 | 100.0 |
| &nbsp;&nbsp;&nbsp;〃 | &nbsp;&nbsp;&nbsp;PT. Shinhan Sekuritas Indonesia | Indonesia | 〃 | 99.0 | 99.0 |
| &nbsp;&nbsp;&nbsp;Shinhan Life Insurance<br>Co., Ltd. | &nbsp;&nbsp;&nbsp;Shinhan Financial Plus Co., Ltd. | Korea | 〃 | 100.0 | 100.0 |
| &nbsp;&nbsp;&nbsp;〃 | &nbsp;&nbsp;&nbsp;Shinhan LifeCare Co., Ltd. | 〃 | 〃 | 100.0 | 100.0 |
| &nbsp;&nbsp;&nbsp;〃 | &nbsp;&nbsp;&nbsp;Shinhan Life Insurance Vietnam Co., Ltd. | Vietnam | 〃 | 100.0 | 100.0 |
| &nbsp;&nbsp;&nbsp;Shinhan DS | &nbsp;&nbsp;&nbsp;Shinhan DS Vietnam Co., Ltd. | Vietnam | 〃 | 100.0 | 100.0 |

---

(\*1) Subsidiaries such as trust, beneficiary certificate, special purpose company, partnerships and private equity fund which are not actually operating their own business are excluded.

(\*2) During the year ended December 31, 2025, a third-party share issuance resulted in a decrease in the Group's ownership interest from 75.3% to 64.0%.

(\*3) During the year ended December 31, 2025, the Group participated in a capital increase of W 100,000 million conducted by Shinhan EZ General Insurance Co., Ltd., resulting in an increase in its ownership interest from 85.1% to 91.7%.

(\*4) During the year ended December 31, 2025, the entity became a consolidated subsidiary through a business combination.

(\*5) During the year ended December 31, 2025, the Group's ownership interest decreased from 100.0% to 90.0% due to a new share issuance by SBJ DNX and the partial disposal of shares held by SBJ Bank.

(\*6) During the year ended December 31, 2025, a third-party share issuance resulted in a decrease in the Group's ownership interest from 75.0% to 72.1%.

(\*7) As of December 31, 2025, the disposal is in progress and has been classified as held for sale.

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

**1. <u>Reporting entity (continued)</u>**

(c) Consolidated structured entities

Consolidated structured entities are as follows:

---

| | | |
|:---|:---|:---|
| &nbsp;&nbsp;**Category** | &nbsp;&nbsp;**Consolidated structured entities** | **Description** |
| &nbsp;&nbsp;Trust | &nbsp;&nbsp;Shinhan Bank (including<br> development trust) and<br> 17 others  | A trust is consolidated when the Group as a trustee is exposed to significant variable returns, if principle or interest amounts of the entrusted properties falls below guaranteed amount, the Group should compensate it, and the Group has the ability to affect those returns. |
| &nbsp;&nbsp;Asset-Backed<br>Securitization<br>| &nbsp;&nbsp;Tiger Eyes 3 Co., Ltd. <br>and 154 others | An entity for asset backed securitization is consolidated when the Group has sole decision-making authority to dispose assets or change the conditions of the assets, and the Group is substantially exposed to, or has rights to significant variable returns by providing credit enhancement and purchases of subordinated securities. |
| &nbsp;&nbsp;Structured <br>Financing | &nbsp;&nbsp;- | An entity established for structured financing relating to real estate, shipping, or mergers and acquisitions is consolidated when, due to events such as the counterparty's default, normal operations become no longer feasible and the Group, as the largest credit provider to the entity, has sole decision-making authority of these entities due to the entities default, and is substantially exposed to, or has rights to significant variable returns. |
| &nbsp;&nbsp;Investment Fund | &nbsp;&nbsp;One Shinhan Future's <br>Fund and 187 others | An investment fund is consolidated, when the Group manages or invests assets of the investment funds on behalf of other investors as a collective investor or a business executive, or has the ability to dismiss the manager of the investment funds, and is substantially exposed to, or has rights to, the significant variable returns. |

---

(\*) The Group provides ABCP purchase agreements and others of W 7,593,502 million for the purpose of credit enhancement of structured companies.

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SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

**2. <u>Basis of preparation</u>**

**(a) Statement of compliance**

The Group maintains its accounting records in Korean won and prepares statutory financial statements in the Korean language (Hangul) in accordance with International Financial Reporting Standards as adopted by the Republic of Korea (K-IFRS). The accompanying consolidated financial statements have been restructured and translated into English from the Korean language financial statements.

Certain information attached to the Korean language financial statements but not required for a fair presentation of the Group's financial position, financial performance or cash flows, is not presented in the accompanying consolidated financial statements.

The consolidated financial statements of the Group were authorized for issue by the Board of Directors on February 5, 2026, and the consolidated financial statements will be submitted for approval to the stockholders' meeting to be held on March 26, 2026.

**(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 K-IFRS requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, incomes and expenses. If the estimates and assumptions based on management's best judgment as of December 31, 2025 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.

In preparing these consolidated financial statements, the significant judgments made by management in applying the Group's accounting policies and the key sources of estimation uncertainty were the same as those that applied to the consolidated financial statements as of and for the year ended December 31, 2024 except as explained below.

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

**2. <u>Basis of preparation (continued)</u>**

**(e) Standards and amendments adopted by the Group**

The Group has newly applied the following accounting policies upon preparation of the annual consolidated financial statements from the beginning on January 1, 2025.

*i) Amendment to K-IFRS No. 1021 'Effects of Changes in Foreign Exchange Rates' and No. 1101 'First-time adoption of K-IFRS' – Lack of Exchangeability* 

These amendments define scenarios where exchanges with other currencies are considered possible for accounting purposes, clarify the assessment of exchangeability with other currencies, and specify requirements for estimating and disclosing the spot exchange rate in cases where no exchangeability exists. If exchange with other currencies is not possible, the spot exchange rate must be estimated on the measurement date using observable exchange rates without adjustment or employing alternative estimation techniques. There is no significant impact on the consolidated financial statements from these amendments.

*ii) Amendments to K-IFRS No. 1117 'Insurance Contracts' - Disclosure requirements related to lapse rates for insurance products with no or low surrender value*

The amendments add a disclosure requirement for entities to disclose, where the techniques to estimate the inputs used for measuring insurance contracts differ from those prescribed under insurance-related laws or regulations and such differences are considered relevant and material to users of the financial statements, those differences and their effects on the financial statements.

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

**3. <u>Material accounting policies</u>**

Material accounting policies applied by the Group upon the preparation of consolidated financial statements under K-IFRS are described below, and consolidated financial statements for the year ended December 31, 2025, and comparative periods were prepared using the same accounting policy, except as described in Note 2.

**(a) Operating segments**

The Group has divided the segments based on internal reports reviewed periodically by the chief operating decision maker to make decisions about the resources allocated to the segments and evaluate their performance. There are six reporting segments as described in Note 8. The reporting segments are operated separately according to the nature of the goods and services provided and the organizational structure of the Group.

The segment reported to the Chief Executive Officer ("CEO") includes items directly attributable to a segment as well as those that can be allocated on a reasonable basis.

It is the CEO's responsibility to evaluate the resources to be distributed to the business and the performance of the business, and to make strategic decisions.

**(b) Basis of consolidation**

*i) Subsidiaries*

If an entity of the Group uses accounting policies other than those adopted in the consolidated financial statements for the same transactions and events in similar circumstances, appropriate adjustments are made to its financial statements in preparing the consolidated financial statements.

*ii) Structured entity*

The Group establishes or invests in various structured entities. Considering the terms and conditions of the arrangement in which the structured entity was established, the entity is included in the consolidated entities if it is determined that the Group obtains gains and losses from the operations thereof, and the Group has the ability to direct the activities of the entity that can most significantly affect these gains and losses. The Group does not recognize any non-controlling interests as equity in relation to structured entities in the consolidated statements of financial position since the non-controlling interests in these entities are recognized as liabilities of the Group.

*iii) Intra-group transactions eliminated on consolidation*

Intra-group balances, transactions, and any unrealized income and expenses arising from intra-group transactions are eliminated in preparing the consolidated financial statements. Unrealized intra-group losses are recognized as expense if intra-group losses indicate an impairment that requires recognition in the consolidated financial statements.

*iv) Non-controlling interests*

Non-controlling interests in a subsidiary are accounted for separately from the parent's ownership interests in a subsidiary. Each component of net profit or loss and other comprehensive income is attributed to the owners of the parent and non-controlling interest holders, even when the non-controlling interests balance is reduced to below zero.

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

**3. <u>Material accounting policies (continued)</u>**

**(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 K-IFRS No.1012, *'Income Taxes'*

- Employee benefit arrangements are recognized and measured in accordance with K-IFRS No.1019, '*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 K-IFRS No.1102, *'Share-based Payment'*

- Non-current assets held for sale are measured at fair value less costs to sell in accordance with K-IFRS No.1105, *'Non-current Assets 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 acquiree's identifiable net assets.

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

**3. <u>Material accounting policies (continued)</u>**

**(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 unanimous consent of the parties sharing control.

The investment in an associate and a joint venture is initially recognized at cost, and the carrying amount is increased or decreased to recognize the Group's share of the profit or loss and changes in the investments of the associate and the joint venture after the date of acquisition. Intra-group balances and transactions, and any unrealized income and expenses arising from intra-group transactions, are eliminated the Group's stake in preparing the consolidated financial statements. Unrealized losses are also being derecognized unless the transaction provides evidence of an impairment of the transferred assets.

If an associate or a joint venture uses accounting policies different from those of the Group for transactions and events in similar circumstances, appropriate adjustments are made to its financial statements in applying the equity method.

When the carrying amount of that interest, including any long-term investments, is reduced to nil, the recognition of further losses is discontinued except to the extent that the Group has an obligation or has to make payments on behalf of the investee for further losses.

**(e) Cash and cash equivalents**

Cash and cash equivalents comprise cash on hand, demand deposits, and short-term, highly liquid investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value and are used by the Group in management of its short-term commitments with maturities of three months or less from the date of acquisition.

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

**3. <u>Material accounting policies (continued)</u>**

**(f) Non-derivative financial assets** 

Financial assets are recognized in the consolidated statement of financial position when the Group becomes a party to the contract. In addition, a standardized purchase or sale (a purchase or sale of a financial asset under a contract whose terms require delivery of the asset within the time frame established generally by regulation or convention in the market concerned) is recognized on the trade date.

*i) Financial assets designated at FVTPL* 

Financial assets can be irrevocably designated as measured at FVTPL despite classification standards stated below, if doing so eliminates or significantly reduces an accounting mismatch that would otherwise arise from measuring assets or liabilities or recognizing the gains or losses on them on different bases. However, once the financial assets are designated at FVTPL, it is irrevocable.

*ii) Equity instruments* 

For the equity instruments that are not held for short-term trading, at initial recognition, the Group may make an irrevocable election to present subsequent changes in fair value in other comprehensive income. Equity instruments that are not classified as financial assets at Fair Value through Other Comprehensive Income ("FVOCI") are classified as financial assets at FVTPL.

The Group subsequently measures all equity investments at fair value. Valuation gains or losses of the equity instruments that are classified as financial assets at FVOCI previously recognized as other comprehensive income is not reclassified as profit or loss on derecognition. The Group recognizes dividends in profit or loss when the Group's right to receive payments of the dividend is established.

Valuation gains or losses due to changes in fair value of the financial assets at FVTPL are recognized in the consolidated statement of comprehensive income gains or losses on financial assets at FVTPL. Impairment loss (reversal) on equity instruments at FVOCI is not recognized separately.

*iii) Debt instruments* 

Subsequent measurement of debt instruments depends on the Group's business model in which the asset is managed and the contractual cash flow characteristics of the asset. Debt instruments are classified as financial assets at amortized cost, at FVOCI, or at FVTPL. Debt instruments are reclassified only when the Group's business model changes.

*iii-1) Financial assets at amortized cost* 

Assets that are held within a business model whose objective is to hold assets to collect contractual cash flows where those cash flows represent solely payments of principal and interest are measured at amortized cost. A gain or loss on a financial asset measured at amortized cost that is not subject to a hedging relationship is recognized in profit or loss when the financial asset is derecognized or impaired. Interest income on the effective interest method is included in the 'Interest income' in the consolidated statement of comprehensive income.

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

**3. <u>Material accounting policies (continued)</u>**

**(f) Non-derivative financial assets (continued)**

*iii) Debt instruments (continued)*

*iii-2) Financial assets at FVOCI* 

Assets that are held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets and, where the assets' cash flows represent solely payments of principal and interest, are measured at FVOCI. Other than (reversal of) impairment losses, interest income, foreign exchange differences, gains or losses of the financial assets at FVOCI are recognized as other comprehensive income in equity. On removal, gains or losses accumulated in other comprehensive income are reclassified to profit or loss. The interest income on the effective interest method is included in the 'Interest income' in the consolidated statement of comprehensive income. Foreign exchange differences and impairment losses are included in the 'Net foreign currency transaction gain' and 'Provision for credit losses allowance' in the consolidated statement of comprehensive income, respectively.

*iii-3) Financial assets at FVTPL* 

Debt securities other than financial assets at amortized costs or FVOCI are classified at FVTPL. Unless hedge accounting is applied, gains or losses from financial assets at FVTPL are recognized as profit or loss and are included in 'Net gain (loss) on financial instruments at fair value through profit or loss' in the consolidated statement of comprehensive income.

*iv) Embedded derivatives* 

Financial assets with embedded derivatives are classified regarding the entire hybrid contract, and the embedded derivatives are not separately recognized. The entire hybrid contract is considered when it is determined whether the contractual cash flows represent solely payments of principal and interest.

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SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

**3. <u>Material accounting policies (continued)</u>**

**(g) Derivative financial instruments** 

Derivatives are initially recognized at fair value. Subsequent to initial recognition, derivatives are measured at fair value, and changes therein are accounted for as described below.

*i) Hedge accounting*

The Group holds forward exchange contracts, interest rate swaps, currency swaps and other derivative contracts to manage interest rate risk and foreign exchange risk. The Group designated derivatives as hedging instruments to hedge the risk of changes in the fair value of assets, liabilities or firm commitments (a fair value hedge) and foreign currency risk of highly probable forecasted transactions or firm commitments (a cash flow hedge).

On initial designation of the hedge, the Group formally documents the relationship between the hedging instrument(s) and hedged item(s), including the risk management objectives and strategy in undertaking the hedge transaction. In addition, this document describes the hedging instrument, hedged item, and the method of evaluating the effect of the hedging instrument offsetting changes in the fair value or cash flow of the hedged item due to the hedged risk at the initiation of the hedging relationship and in subsequent periods.

*i-1) Fair value hedge*

Changes in the fair value of a derivative hedging instrument designated as a fair value hedge are recognized in profit or loss. The gain or loss from remeasuring the hedging instrument at fair value for a derivative hedging instrument and the gain or loss on the hedged item attributable to the hedged risk are recognized in profit or loss in the same line item of the consolidated statement of comprehensive income.

The Group discontinues fair value hedge accounting if the hedging instrument expires or is sold, terminated or exercised, or if the hedge no longer meets the criteria. Any adjustment arising from gain or loss on the hedged item attributable to the hedged risk is amortized to profit or loss from the date the hedge accounting is discontinued.

*i-2) Cash flow hedge*

When a derivative is designated to hedge the variability in cash flows attributable to a particular risk associated with a recognized asset or liability or a highly probable forecasted transaction that could affect profit or loss, the effective portion of changes in the fair value of the derivative is recognized in other comprehensive income, net of tax, and presented in the hedging reserve in equity. Any ineffective portion of changes in the fair value of the derivative is recognized immediately in profit or loss.

If the hedging instrument no longer meets the criteria for hedge accounting, expires or is sold, terminated, exercised, or the designation is revoked, then hedge accounting is discontinued prospectively. The cumulative gain or loss on the hedging instrument that has been recognized in other comprehensive income is reclassified to profit or loss in the periods during which the forecasted transaction occurs. If the forecasted transaction is no longer expected to occur, then the balance in other comprehensive income is recognized immediately in profit or loss.

*i-3) Net investment hedge*

The portion of the change in fair value of a financial instrument designated as a hedging instrument that meets the requirements for hedge accounting for a net investment in a foreign operation is recognized in other comprehensive income and the ineffective portion of the hedge is recognized in profit or loss. The portion recognized as other comprehensive income that is effective as a hedge is recognized in the statement of comprehensive income as a result of reclassification adjustments in accordance with K-IFRS No. 1021, "Effect of Changes in Foreign Exchange Rates" at the time of disposing of its overseas operations or disposing of a portion of its overseas operations to profit or loss.

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

**3. <u>Material accounting policies (continued)</u>**

**(g) Derivative financial instruments (continued)**

*ii) Other derivative financial instruments*

All derivatives except those designated as hedging instruments and are effective in hedging are measured at fair value. Changes in the fair value of other derivative financial instruments not designated as hedging instruments are recognized immediately in profit or loss.

*iii) Gains and losses on initial recognition*

Any difference between the fair value of over the counter derivatives at initial recognition and the amount that would be determined at that date using a valuation technique in a situation in which the valuation is dependent on unobservable parameters is not recognized in profit or loss but is deferred, and the deferred gains and losses on initial transaction are depreciated on a straight-line basis over the life of the instrument or the remainder is recognized in profit or loss immediately when the fair value becomes observable.

**(h) Expected credit losses of financial assets** 

Except for financial assets measured at fair value through profit or loss, financial assets measured at amortized cost and financial assets measured at fair value through other comprehensive income are assessed for expected credit losses at the end of each reporting period and recognized as loss allowance.

Financial assets migrate through the following three stages based on the change in credit risk since initial recognition and allowance for credit loss for the financial assets are measured at the 12-month expected credit losses ("ECL") or the lifetime ECL, depending on the stage.

---

| | | |
|:---|:---|:---|
| **Category** | **Category** | **Allowance for credit loss** |
| &nbsp;&nbsp;&nbsp;&nbsp;STAGE 1 | When credit risk has not increased<br> significantly since the initial<br> recognition | &nbsp;&nbsp;12-month ECL: the ECL associated with the probability of default events occurring within the next 12 months<br>|
| &nbsp;&nbsp;&nbsp;&nbsp;STAGE 2 | When credit risk has increased<br> significantly since the initial<br> recognition | &nbsp;&nbsp;Lifetime ECL: a lifetime ECL associated with the probability of default events occurring over the remaining lifetime<br>|
| &nbsp;&nbsp;&nbsp;&nbsp;STAGE 3 | When assets are impaired | Same as above |

---

The Group, meanwhile, only recognizes the cumulative changes in lifetime expected credit losses since the initial recognition as an allowance for credit loss for purchased or originated credit-impaired financial assets.

The total period refers to the expected life of the financial instrument up to the contractual maturity date.

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SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

**3. <u>Material accounting policies (continued)</u>**

**(h) Expected credit losses of financial assets (continued)**

*i) Reflection of forward-looking information*

The Group incorporates forward-looking information when assessing whether credit risk has increased significantly and when measuring expected credit losses.

Assuming that the measurement factor of expected credit losses has a certain correlation with economic fluctuations, the expected credit losses are calculated by reflecting forward-looking information through modeling between macroeconomic variables and measurement factors.

*ii) Measurement of expected credit loss of financial assets at amortized cost*

The expected credit loss of amortized financial assets is measured as the difference between the present value of the cash flows expected to be received and the cash flow to be received in accordance with loan agreements. For this purpose, the Group calculates expected cash flows for individually significant financial assets.

For financial assets that are not individually significant, the Group collectively measures the expected credit losses thereof with similar credit risk characteristics.

Expected credit losses are deducted from financial assets at amortized cost using ACL, which are written off along with the assets if the assets are not recoverable. The allowance for credit loss is increased when the written-off loan receivables are subsequently collected, and the changes in the allowance for credit loss are recognized in profit or loss.

*iii) Measurement of estimated credit loss of financial assets at FVOCI* 

The calculation of expected credit loss of financial assets at FVOCI is the same as for financial assets measured at amortized cost, but changes in allowance for credit loss are recognized in other comprehensive income. In the case of disposal and redemption of financial assets at FVOCI, the allowance for credit loss is reclassified from other comprehensive income to profit or loss and recognized in profit or loss.

**(i) Property and equipment**

Land is not depreciated. Other property and equipment are depreciated on a straight-line basis over the estimated useful lives for the acquisition cost after deduction of the residual value. The estimated useful lives for the current and comparative periods are as follows:

---

| | |
|:---|:---|
| &nbsp;&nbsp;Descriptions | &nbsp;&nbsp;Useful lives |
| &nbsp;&nbsp;Buildings  | &nbsp;&nbsp;40 ~ 50 years |
| &nbsp;&nbsp;Other properties  | &nbsp;&nbsp;4 ~ 5 years |

---

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SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

**3. <u>Material accounting policies (continued)</u>**

**(j) Intangible assets**

Intangible assets are measured initially at cost and, subsequently, are carried at cost less accumulated amortization and accumulated impairment losses.

Amortization of intangible assets except for goodwill is calculated on a straight-line basis over the estimated useful lives of intangible assets as shown below, from the date that they are available for use. The residual value of intangible assets is zero. However, if there are no foreseeable limits to the periods over which certain intangible assets are expected to be available for use, they are determined to have indefinite useful lives and are not amortized.

---

| | |
|:---|:---|
| &nbsp;&nbsp;Descriptions | &nbsp;&nbsp;Useful lives |
| &nbsp;&nbsp;Software  | &nbsp;&nbsp;5 years |
| &nbsp;&nbsp;Capitalized development cost | &nbsp;&nbsp;5 ~ 10 years |
| &nbsp;&nbsp;Other intangible assets  | &nbsp;&nbsp;5 years or contract periods |

---

**(k) Investment properties**

An investment property is initially recognized at cost including any directly attributable expenditure. Subsequent to initial recognition, the asset is measured at cost less accumulated depreciation and accumulated impairment losses, if any.

The depreciation method and the estimated useful lives for the current and comparative periods are as follows:

<u>Descriptions</u>   <u>Useful lives</u>   <u>Depreciation method</u> <br> Buildings 40 ~ 50 years Straight-line

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SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

**3. <u>Material accounting policies (continued)</u>**

**(l) Leases**

*i) Accounting treatment as the lessee*

The Group leases various tangible assets, such as real estate and vehicles, and each of the lease contract is negotiated individually and includes a variety of terms and conditions. There are no other restrictions imposed by the lease contracts, but the lease assets cannot be provided as collaterals for borrowings.

At the commencement date of the lease, the Group recognizes the right-of-use assets and the lease liabilities. Each lease payment is allocated to payment for the principal portion of the lease liability and financial costs. The Group recognizes in profit or loss the amount calculated to produce a constant periodic rate of interest on the lease liability balance for each period as financial costs. Right-of-use assets are depreciated using a straight-line method from the commencement date over the lease term.

If the interest rate implicit in the lease is readily determined, the lease payments are discounted by the rate; if the rate is not readily determined, the lessee's incremental borrowing rate is used.

The cost of the right-of-use assets comprise:

- The amount of the initial measurement of the lease liability

- Any lease payments made at or before the commencement date (less any lease incentives received)

- Any initial direct costs incurred by the lessee

- An estimate of costs to be incurred by the lessee in dismantling and removing the underlying asset, restoring the site on which it is located or restoring the underlying asset to the condition required by the terms and conditions of the lease

Lease payments related to short-term leases or low-value assets are recognized as current expenses over the lease term using the straight-line method. A short-term lease is a lease that has a lease term of 12 months or less, and the low-value assets lease is a lease of which the underlying asset value is not more than W6 million.

Additional considerations for the Group when accounting for lessees include:

Extension and termination options are included in a number of real estate lease contracts of the Group. In determining the lease term, management considers all relevant facts and circumstances that create an economic incentive not to exercise the options. The periods covered by, a) an option to extend the lease if the lessee is reasonably certain to exercise that option, or b) an option to terminate the lease if the lessee is reasonably certain not to exercise that option, is included when determining the lease term. The Group reassesses whether the Group is reasonably certain to exercise the extension option, or not to exercise a termination option, upon the occurrence of either a significant event or a significant change in circumstances that is within the control of the lessee, and affects whether the lessee is reasonably certain to exercise an option not previously included in its determination of the lease term, or not to exercise an option previously included in its determination of the lease term.

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

**3. <u>Material accounting policies (continued)</u>**

**(l) Leases (continued)**

*ii) Accounting treatment as the lessor*

The Group leases out to lessee various tangible assets, including vehicles under operating and finance lease contracts, and each of the lease contract is negotiated individually and includes a variety of terms and conditions. The risk management method for all rights held by the Group in the underlying assets includes repurchase agreements, residual value guarantees, etc.

*ii-1) Finance leases*

The Group recognizes them as a receivable at an amount equal to the net investment in the lease, and the difference from the carrying amount of leasing asset as of the commencement date is recognized as profit or loss from disposal of the lease asset. In addition, interest income is recognized by applying the effective interest method for the amount of the Group's net investment in finance leases. Lease-related direct costs are included in the initial recognition of financial lease receivables and are accounted for in a way that reduces the revenue for the lease term.

*ii-2) Operating leases*

The Group recognizes the lease payments as income on straight-line basis, and adds the lease initial direct costs incurred during negotiation and contract phase of the operating lease to the carrying amount of the underlying asset. In addition, the depreciation policy of operating lease assets is consistent with the Group's depreciation policy of other similar assets.

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

**3. <u>Material accounting policies (continued)</u>**

**(m) Impairment of non-financial assets**

The carrying amounts of the Group's non-financial assets, other than assets arising from employee benefits, deferred tax assets and non-current assets held for sale, are reviewed at the end of the reporting period to determine whether there is any indication of impairment. If any such indication exists, then the asset's recoverable amount is estimated.

Goodwill and intangible assets that have indefinite useful lives or that are not yet available for use, irrespective of whether there is any indication of impairment, are tested for impairment annually by comparing their recoverable amount to their carrying amount.

The Group estimates the recoverable amount of an individual asset, and if it is impossible to measure the individual recoverable amount of an asset, then the Group estimates the recoverable amount of cash-generating unit ("CGU"). The recoverable amount of an asset or a CGU is the greater of its value in use and its fair value less costs to sell. The value in use is estimated by applying a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset or the CGU for which estimated future cash flows have not been adjusted, to the estimated future cash flows expected to be generated by the asset or the CGU.

An impairment loss is recognized if the carrying amount of an asset or a CGU exceeds its recoverable amount. Impairment losses are recognized in profit or loss.

Goodwill acquired in a business combination is allocated to each CGU that is expected to benefit from the synergies arising from the goodwill acquired. Any impairment identified at the CGU level will first reduce the carrying amount of goodwill and then be used to reduce the carrying amount of the other assets in the CGU on a pro rata basis. Impairment losses of goodwill cannot be reversed in the subsequent period. For other assets than goodwill, at the end of each reporting period, the Group reviews whether there is any indication that the impairment loss for those assets that was previously recognized no longer exists or has decreased, and reverses the impairment loss only if there is a change in the estimate used to determine the recoverable amount after the recognition of the impairment loss. The increased carrying amount of an asset attributable to a reversal of an impairment loss shall not exceed the carrying amount that would have been determined (net of amortisation or depreciation) had no impairment loss been recognised for the asset in prior years.

**(n) Non-derivative financial liabilities** 

The Group recognizes financial liabilities in the consolidated statement of financial position when the Group becomes a party to the contractual provisions of the financial liability in accordance with the substance of the contractual arrangement and the definitions of financial liabilities.

Transaction costs on the financial liabilities at FVTPL are recognized in profit or loss as incurred.

*i) Financial liabilities designated at FVTPL* 

Financial liabilities can be irrevocably designated as measured at FVTPL if doing so eliminates or significantly reduces an accounting mismatch that would otherwise arise from measuring assets or liabilities or recognizing the gains and losses on them on different bases, or a group of financial instruments is managed and its performance is evaluated on a fair value basis, in accordance with a documented risk management or investment strategy. The amount of change in the fair value of the financial liabilities designated at FVTPL that is attributable to changes in the credit risk of that liabilities shall be presented in other comprehensive income.

*ii) Financial liabilities at FVTPL* 

Since initial recognition, financial liabilities at FVTPL are measured at fair value, and changes in the fair value are recognized as profit or loss.

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

**3. <u>Material accounting policies (continued)</u>**

**(n) Non-derivative financial liabilities (continued)**

*iii) Other financial liabilities* 

Non-derivative financial liabilities other than financial liabilities at fair value through profit or loss are classified as other financial liabilities, and other financial liabilities include deposits, borrowings, debt securities and etc. At the date of initial recognition, other financial liabilities are measured at fair value minus transaction costs that are directly attributable to the acquisition. Subsequent to initial recognition, other financial liabilities are measured at amortized cost using the effective interest method.

The Group derecognizes a financial liability from the consolidated statement of financial position when it is extinguished (i.e. when the obligation specified in the contract is discharged, cancelled or expires).

**(o) Foreign currency**

*i) Foreign operations*

The assets and liabilities of foreign operations, whose functional currency is not the currency of a hyperinflationary economy, are translated to presentation currency at exchange rates at the reporting date. The income and expenses of foreign operations are translated to functional currency at exchange rates at the dates of the transactions. Foreign currency differences are recognized in other comprehensive income.

**(p) Equity capital**

*i) Hybrid bonds* 

The Group classifies an issued financial instrument, or its component parts, as a financial liability or an equity instrument depending on the substance of the contractual arrangement of such financial instrument. Hybrid bonds where the Group has an unconditional right to avoid delivering cash or another financial asset to settle a contractual obligation are classified as an equity instrument and presented in equity. Hybrid bonds issued by subsidiaries of the Group are classified as non-controlling interests according to this classification criteria. In addition, distributions paid are treated as net income attributable to non-controlling interests in the consolidated statement of comprehensive income.

*ii) Capital adjustment*

The effect of changes in ownership interests in subsidiaries that do not lose control over the equity attributable to owners of the parent is included in capital adjustments.

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

**3. <u>Material accounting policies (continued)</u>**

**(q) Employee benefits** 

*i) Short-term employee benefits* 

Short-term employee benefits are employee benefits that are due to be settled within 12 months after the end of the period in which the employees render the related service. When an employee has rendered service to the Group during an accounting period, the Group recognizes the undiscounted amount of short-term employee benefits expected to be paid in exchange for that service.

*ii) Other long-term employee benefits* 

The Group's net obligation in respect of other long-term employee benefits that are not expected to be settled wholly before 12 months after the end of the annual reporting period in which the employees render the related service, is the amount of future benefit that employees have earned in return for their service in the current and prior periods. That benefit is discounted to determine its present value. Remeasurements are recognized in profit or loss in the period in which they arise.

*iii) Retirement benefits: defined benefit plans* 

For the year ended December 31, 2025, defined benefit liabilities related to the defined benefit plan are recognized by deducting the fair value of external reserve from the present value of the defined benefit plan debt.

Defined benefit liabilities are calculated annually by independent actuaries using the predicted unit credit method. If the net present value of the defined benefit obligation less the fair value of the plan assets is an asset then the present value of the economic benefits available to the entity in the form of a refund from the plan or a reduction in future contributions to the plan.

**(r) Provisions** 

Provisions are recognized when the Group has a present legal or constructive obligation as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation.

The risks and uncertainties that inevitably surround many events and circumstances are taken into account in reaching the best estimate of a provision. Where the effect of the time value of money is material, provisions are determined at the present value of the expected future cash flows.

Provisions are reviewed at the end of each reporting period and adjusted to reflect the current best estimate. If it is no longer probable that an outflow of resources embodying economic benefits will be required to settle the obligation, the provision is reversed. Provisions shall be used only for expenditures for which the provisions are originally recognized.

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SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

**3. <u>Material accounting policies (continued)</u>**

**(s) Financial guarantee contract** 

A financial guarantee contract is a contract that requires the Group to make specified payments to reimburse the holder for a loss it incurs because a specified debtor fails to make payment when due in accordance with the original or modified terms of a debt instrument.

Financial guarantee contracts are recognized initially at their fair value, and the initial fair value is amortized over the life of the financial guarantee contract.

After initial recognition, financial guarantee contracts are measured at the higher of:

- Loss allowance in accordance with K-IFRS No. 1109, '*Financial Instruments*'

- The amount initially recognized less, when appropriate, the cumulative amount of income recognized in accordance with the principles of K-IFRS No. 1115, '*Revenue from Contracts with Customers*'

**(t) Insurance contracts**

*i) Definition and classification of insurance contracts* 

The Group classifies the insurance contract issued as an insurance contract when assuming significant insurance risk from the policyholder, regardless of its legal form. It is classified as an insurance contract if, based on present value, there is a potential loss exposure and if, under any commercially plausible scenario, significant additional payments (determined on a present value basis) would be required to the policyholder. The assessment of assuming significant insurance risk is performed for each contract at the time of issuance. For reinsurance contracts, they are classified as insurance contracts when transferring significant insurance risk to the reinsurer. Additionally, contracts with discretionary participation features are also classified as insurance contracts.

Among the insurance contracts held by the Group, participating insurance contracts are contracts under which, in accordance with the terms and conditions agreed between the insurer and the policyholder, the insurer distributes excess profits to policyholders in the form of dividends pursuant to the Regulations on Supervision of Insurance Business, in addition to insurance claims or surrender values. Under such contracts, the insurer has a contractual obligation to pay dividends to policyholders when dividends arise in accordance with the insurance policy terms and conditions.

Insurance contracts issued by the Group are subject to the recognition and measurement of insurance liabilities in accordance with K-IFRS No. 1117. K-IFRS No. 1117 requires insurance liabilities to be measured and recognized at the level of individual insurance contracts and to be measured based on estimates of all future cash flows within groups of insurance contracts. Accordingly, for participating insurance contracts, insurance liabilities are measured and recognized at the level of individual insurance contracts by estimating the future cash flows of each contract, including insurance claims, surrender values and dividends.

Such insurance contracts constitute a unit of account for the recognition and measurement of liabilities, as defined in paragraph 4.48 of the Conceptual Framework for Financial Reporting.

Accordingly, insurance liabilities are recognized and measured in accordance with the requirements of K-IFRS No. 1117 using insurance contracts as the unit of account, thereby meeting the definition of a liability under the Conceptual Framework for Financial Reporting. In this context, liabilities related to policyholder dividends constitute a component of insurance liabilities measured using participating insurance contracts as the unit of account.

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SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

**3. <u>Material accounting policies (continued)</u>**

**(t) Insurance contracts (continued)**

*ii) Recognition and measurement of insurance liabilities (assets) and reinsurance assets (liabilities)* 

*ii-1) Accounting unit* 

The Group identifies insurance contract portfolios by integrating insurance contracts that are exposed to similar risks and managed together based on coverage, currency, and interest rate types. The Group divides a portfolio of insurance contracts issued into the following groups of insurance contracts based on similarity of profitability. However, for insurance contracts applying the premium allocation approach, it assumes that there is no onerous insurance contract (or net gain contract for reinsurance contracts held) at the initial recognition unless evidence suggests otherwise.

A group of insurance contracts issued consists of:

- A group of contracts that are onerous at initial recognition.

- A group of contracts that at initial recognition have no significant possibility of becoming onerous subsequently

- A group of the remaining contracts

A group of reinsurance contracts held consists of:

- A group of contracts with net profits at initial recognition.

- A group of contracts that at initial recognition have the possibility of having net profits subsequently

- A group of the remaining contracts

The Group does not include contracts with a difference in issuance dates exceeding one year in the same group of insurance contracts issued, and it does not reassess the composition of the group subsequently.

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SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

**3. <u>Material accounting policies (continued)</u>**

**(t) Insurance contracts (continued)**

*ii) Recognition and measurement of insurance liabilities (assets) and reinsurance assets (liabilities)(continued)*

*ii-2) Recognition of a group of insurance contracts issued*

The Group shall recognize a group of insurance contracts it issues from the earliest of the following:

- The beginning of the coverage period of the group of contracts;

- The date when the first payment from a policyholder in the group becomes due (If there is no contractual payment due date, the time the first premium is received is considered that date); and

- For a group of onerous contracts, when the group becomes onerous.

The Group recognizes a group of reinsurance contracts held at the beginning of the coverage period of the group of insurance contracts held. However, in the case of non-proportional reinsurance, if the group of underlying contracts is a group of onerous contract and the group of reinsurance contracts held is concluded at or before the time when the group of underlying contracts is recognized, the Group recognizes a group of reinsurance contracts held at the earlier of the beginning of the coverage period of the group of reinsurance contracts held or the recognition time of the group of underlying insurance contracts which is the onerous contract for the current year. In addition, in the case of proportional reinsurance, the Group recognizes the group of reinsurance contracts held at the time of initial recognition of the group of underlying insurance contracts, if the initial recognition time of the group of underlying insurance contracts is later than the beginning of the coverage period of the group of reinsurance contracts held.

*ii-3) Measurement of insurance liabilities (assets) and reinsurance assets (liabilities) under the general model* 

At the time of initial recognition, the Group measures a group of insurance contracts issued as the sum of fulfillment cash flows (estimates of future cash flows, adjustments to the time value of money related to financial risks to future cash flows, and risk adjustments to non-financial risks) and contractual service margin, and subsequently, as the sum of the liability or assets for remaining coverage (fulfillment cash flow and contractual service margin) and the liability or asset for incurred claims (fulfillment cash flow). The liability for remaining coverage includes the obligation to investigate and pay reasonable insurance claims according to the current insurance contract for insurance events that have not yet occurred, the obligation to pay amounts related to insurance contract services that have not yet been provided, and represents the obligation to pay investment components and other amounts that have not been transferred to incurred liability. The liability for incurred claims comprises the obligation to investigate insurance events that have already occurred and pay reasonable insurance claims and other incurred insurance costs, the obligation to pay amounts related to insurance contract services already provided, and obligation to pay investment components and other amounts not related to insurance contract services and not included in the liability for remaining coverage.

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SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

**3. <u>Material accounting policies (continued)</u>**

**(t) Insurance contracts (continued)**

*ii) Recognition and measurement of insurance liabilities (assets) and reinsurance assets (liabilities)(continued)*

*ii-3) Measurement of insurance liabilities (assets) and reinsurance assets (liabilities) under the general model (continued)*

- The estimate of future cash flows

The Group estimates future cash flows using a probability-weighted average based on all relevant, reliable, and neutral information available without undue cost or effort regarding the timing, scope, and uncertainty of future cash flows. Estimates for market variables are consistent with observable market prices and reflect the perspective of the entity, while estimates for non-market variables incorporate all reasonable and reliable internal and external evidence available without undue cost or effort, while ensuring consistency with observable market variables. The Group segregates the future cash flows of reinsurance contracts held from those of the underlying insurance contracts issued and measures them separately, using assumptions consistent with the underlying insurance contracts issued but including the effect of risk of non-performance by the issuer of the reinsurance contract.

- Future cash flows within the contract boundary

The Group includes all future cash flows within the boundary of a group of insurance contracts issued when measuring the group. Cash flows within the contract boundary refer to cash flows up to the reporting period in which there exists a substantive right or obligation to compel the policyholder to pay premiums (or compel the reinsurer to pay reinsurance premiums for a group of reinsurance contracts held) or to provide substantive services under the insurance contract (or receive substantive services from the reinsurer for a group of reinsurance contracts held).

Cash flows within the contract boundary include premiums from policyholders, claims and benefits payable to policyholders (including payments linked to underlying items), insurance claim handling expenses, undivided options and guarantees-related cash flows, insurance acquisition cash flows directly attributable to the contract or its portfolio, fixed/variable indirect expenses directly attributable to fulfilling the insurance contract, costs related to investment activities and the provision of investment return services/investment-related services, insurance policy loans, etc; and excludes investment income or future insurance-related cash flows, product development expenses, and training expenses not directly attributable to the insurance contract portfolio.

The substantive obligations to provide insurance contract services (or the substantive right to receive insurance contract services for a group of reinsurance contracts held) ends when there is the practical ability to reassess the risks of the particular policyholder or the risks of the portfolio of insurance contracts(the risk transferred to reinsurance company for a group of reinsurance contracts held), and, as a result, to fully reflect such risks in pricing or settlement; during the reassessment of portfolio pricing, the risks related to periods after the reassessment date is not considered. The Group reassesses the contract boundary at the end of each reporting period to reflect changes in circumstances affecting substantive rights and obligations.

- Discretionary cash flows

The Group identifies and distinguishes the effects of discretionary cash flow variations, which pertain to amounts or timing of cash flows subject to discretion, and the effects of changes in assumptions related to financial risks on the recognition, separately. Any impact of changes in discretion on recognition is adjusted in contractual service margin. The Group considers any adjustment rate applied to the disclosed benchmark rate as discretionary when applying the disclosed interest rate to payments to policyholders.

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

**3. <u>Material accounting policies (continued)</u>**

**(t) Insurance contracts (continued)**

*ii) Recognition and measurement of insurance liabilities (assets) and reinsurance assets (liabilities)(continued)*

*ii-3) Measurement of insurance liabilities (assets) and reinsurance assets (liabilities) under the general model (continued)*

- Insurance acquisition cash flows

The Group allocates insurance acquisition cash flows directly attributable to the insurance contract portfolio to the group of insurance contracts issued in the portfolio and to the group of future insurance contracts that will be recognized upon renewal of the insurance contracts included in the group in a reasonable and systematic manner. Insurance acquisition cash flows recognized as assets after distribution are assessed for recoverability at the end of each reporting period if the fact and circumstances exist that the asset is impaired. If an impairment loss is identified, it is recognized in profit or loss for the current period and insurance acquisition cash flow assets and adjusted to the carrying amount of insurance acquisition cash flow assets. Insurance acquisition cash flow assets are derecognized when the related group of contracts is initially recognized and are included in the fulfilment cash flow measurement for that group of contracts.

- Discount rate

The Group measures the time value of money using a discount rate that reflects the cash flow and liquidity characteristics of insurance contracts while being consistent with current observable market prices and then adjusts future cash flow estimates. To do this, the Group calculates a risk-free interest rate term structure using the Smith-Wilson interpolation method, incorporating yields on government bonds with maturities observed in the market up to the longest term available, along with initial convergence periods and long-term forward interest rates. Liquidity premiums are then added to determine deterministic scenarios. The liquidity premium is derived by multiplying an adjustment ratio to the difference between the risk spread of the representative insurance industry portfolio and the credit risk spread. Additionally, the Group generates 1,000 stochastic scenarios based on this deterministic scenario, reflecting convergence speed parameters and volatility parameters. Deterministic and stochastic scenarios for foreign currencies are calculated separately from scenarios for Korean Won, taking into account the characteristics of each currency.

- Risk adjustment for non-financial risks

The Group explicitly reflects between estimated future cash flows and discount rates, reflecting the compensation of the uncertainty surrounding the amounts and timing of cash flows arising from non-financial risks through adjustments for non-financial risk. These adjustments are made in accordance with insurance regulations and are allocated at the individual contract level through reasonable and systematic methods. For reinsurance contracts held, adjustments for non-financial risk are calculated to reflect the risk transferred from the holder of the reinsurance contract to the reinsurer, consistent with the assumptions applied in the underlying insurance contracts issued.

- Contractual service margin

At the time of initial recognition of a group of insurance contracts issued, the Group measures the contractual service margin, which is unrealized profit that will be recognized as insurance contract services are provided in the future, as the amount that does not generate revenue or expenses from:

ⅰ) The amount of fulfillment cash flows expected at initial recognition date for the group of insurance contracts issued.

ⅱ) All cash flows already incurred from contracts within the group at the initial recognition date.

ⅲ) The insurance acquisition cash flows allocated to the group at the initial recognition date.

ⅳ) Other assets or liabilities recognized previously for cash flows associated with the group at the initial recognition date.

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SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

**3. <u>Material accounting policies (continued)</u>**

**(t) Insurance contracts (continued)** 

*ii) Recognition and measurement of insurance liabilities (assets) and reinsurance assets (liabilities)(continued)*

*ii-3) Measurement of insurance liabilities (assets) and reinsurance assets (liabilities) under the general model (continued)*

In the case of a reinsurance contracts held, the net cost or net gain on purchasing a group of the reinsurance contracts held is recognized as contractual service margin. However, if the net cost of purchasing reinsurance coverage is related to costs incurred prior to purchasing a group of reinsurance contracts held, it is recognized in profit or loss.

- Changes in fulfilment cash flows and contractual service margin.

The Group re-estimates the future cash flows as of the end of each reporting period at current estimates. Changes in fulfilment cash flows related to the future are adjusted in the contractual service margin, while the current and past service-related portions are recognized in profit or loss. The Group also adjusts the contractual service margin for experience adjustments related to future service-related premiums and related insurance acquisition cash flows, as well as for differences between expected and actual investment components. However, changes in the time value of money and financial risk, changes in estimated fulfilment cash flows for the liabilities for incurred claims (assets), and other experience adjustments related to current and past services are not adjusted in the contractual service margin.

The Group adjusts the current contractual service margin at the end of the reporting period by adding the

following amounts to the base amount:

ⅰ) Impact of newly added contracts to the current group of insurance contracts issued.

ⅱ) Accrued interest on the carrying amount of the contractual service margin, measured at the discount rate determined at initial recognition.

ⅲ) Changes in future service-related fulfilment cash flows (excluding the recognition of loss-recovery components and the reversal of loss components).

ⅳ) Effects of currency exchange differences on the contractual service margin.

ⅴ) Amounts recognized in the current period's profit or loss due to the transfer of insurance contract services during the period.

vi) Loss components and loss recovery components

The Group considers an insurance contract as one that incurs a loss if, at the initial recognition date, the total of the fulfilment cash flows allocated to the insurance contract, previously recognized insurance acquisition cash flows, and cash flows arising from the contract at that date result in a net outflow. Additionally, the Group categorizes a group of insurance contracts issued as a group of onerous contract if, at subsequent measurement dates, adverse fluctuations related to future services allocated to the group of insurance contracts issued exceed the carrying amount of the contractual service margin.

In a group of onerous contracts, there is no contractual service margin, and the measurement of the group consists entirely of the fulfilment cash flows. Any portion at the initial recognition date in the group of onerous contract that is expected to result in a net outflow or exceeds the carrying amount of the contractual service margin subsequently is considered a loss component of that group and recognized as a loss in the current period. After recognizing the loss component, the Group systematically allocates subsequent fluctuations in the remaining insurance liability fulfilment cash flows between the loss component and the liability for remaining coverage, excluding the loss component, based on established criteria. However, subsequent decreases in cash flows related to future services are allocated only to the loss component until it is fully exhausted and recognized in profit or loss. Any excess beyond the loss component's exhaustion is then recognized as contractual service margin again.

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SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

**3. <u>Material accounting policies (continued)</u>**

**(t) Insurance contracts (continued)** 

*ii) Recognition and measurement of insurance liabilities (assets) and reinsurance assets (liabilities)(continued)*

*ii-3) Measurement of insurance liabilities (assets) and reinsurance assets (liabilities) under the general model (continued)*

In the case of a group of reinsurance contracts held, when a loss component is recognized in the group of the underlying insurance contracts, the Group calculates the loss recovery component of the group of the reinsurance contracts held by multiplying the expected recovery ratio for claims under the group of the underlying insurance contracts by the loss component attributed to those claims. This loss recovery component is then used to adjust assets for the remaining coverage of the reinsurance group and to adjust the contractual service margin (or directly adjust the remaining insurance liability if the premium allocation approach is applied) for recognition of the current period's profit or loss. The loss recovery component is adjusted to reflect fluctuations in the loss component of the group of the underlying insurance contracts within the range that does not exceed the loss component's carrying amount for the group of the underlying insurance contracts.

*ii-4) Measurement of insurance liabilities (assets) under the variable fee approach* 

<br>The Group applies the variable fee approach to measure insurance liabilities (assets) for insurance contracts with direct participation features that meet the following criteria at inception. The Group provides investment-related services at the commencement of the insurance contract, and the insurance contract has direct participation features. The Group does not reassess the fulfillment of these criteria unless there is a contract modification. The variable fee approach is not applied to reinsurance contracts held.

<br>i) the contractual terms specify that the policyholder participates in a share of a clearly identified pool of underlying items.

ii) the Group expects to pay to the policyholder an amount equal to a substantial share of the fair value returns on the underlying items.

iii) the Group expects a substantial proportion of any change in the amounts to be paid to the policyholder to vary with the change in fair value of the underlying items.

In the variable fee approach, it is clear that the obligation to pay an amount equal to the fair value of the underlying items, deducted by the variable fee, constitutes the liability to the policyholder. The variable fee is the company's share of the fair value of the underlying items minus fulfillment cash flows, which do not vary depending on the performance of the underlying items. Fluctuations in the obligation to pay an amount equal to the fair value of the underlying items are not adjusted in the contractual service margin. However, adjustments are made in the contractual service margin for the portion of the fair value of the underlying items attributable to the company and the changes in the fulfilment cash flows not subject to variations based on the performance of the underlying items.

The Group measures the present value of cash flows at the initial recognition date and at the end of the reporting period using the same general model. The contractual service margin is calculated by adjusting the base amount with the following amounts.

i) The effect of new contracts added to the current group of insurance contracts issued.

ii) Changes in the portion of the fair value of underlying items attributable to the entity (excluding recognition and reversal of loss components).

iii) Changes in the fulfilment cash flows related to future services (excluding recognition and reversal of loss components).

iv) The effect of exchange rate fluctuations on contractual service margins.

v) Amounts recognized in the current period's profit or loss due to the transfer of insurance contract services during the period.

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SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

**3. <u>Material accounting policies (continued)</u>**

**(t) Insurance contracts (continued)** 

*ii) Recognition and measurement of insurance liabilities (assets) and reinsurance assets (liabilities)(continued)*

*ii-5) Insurance liabilities (assets) and reinsurance assets (liabilities) measured under the premium allocation approach.*

At the inception of a group of insurance contracts issued, if there is a reasonable expectation that the measurement of liabilities for remaining coverage under premium allocation approach does not differ materially from the one under the general model, and if the coverage period for all contracts within the group of insurance contracts issued is one year or less, the insurance liabilities (assets) are measured using the premium allocation approach, which is a simplified method compared to the general model.

The Group measures the liabilities (assets) for remaining coverage at the initial recognition by deducting from the cash received as premiums (or reinsurance premiums paid for reinsurance contracts held), the amount of insurance acquisition cash flows not immediately recognized as expenses (including amounts removed from assets). Subsequently, it determines the carrying amount by adding or subtracting the following amounts from the initial amount:

ⅰ) Premiums received during the reporting period. (reinsurance premiums paid for reinsurance contracts held)

ⅱ) Insurance acquisition cash flows not recognized as expenses and amortization of those insurance acquisition cash flows

ⅲ) Adjustments related to significant financial components

ⅳ) Amount recognized in profit or loss for the reporting period due to providing insurance contract services.

v) Investment components paid (received for reinsurance contracts held) or transferred to the liability (asset) for incurred claims.

The Group does not adjust the carrying amount of the remaining insurance liabilities at the initial recognition date if the coverage period of each contract within the group of insurance contracts issued does not exceed one year, in order to reflect the time value of money and the financial risk effect. Additionally, acquisition cash flows are recognized as expenses when they occur. However, if circumstances indicate that the group of insurance contracts issued incurs losses, the Group performs impairment tests. If the fulfilment cash flows exceed the carrying amount of the liabilities for remaining coverage, the difference is recognized as a loss in the current period, is also recognized as increase of the liabilities for remaining coverage.

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SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

**3. <u>Material accounting policies (continued)</u>**

**(t) Insurance contracts (continued)** 

*ⅲ) Recognition of insurance revenue and insurance service expenses*

*ⅲ-1) Recognition of insurance revenue in general model and variable fee approach model*

Insurance revenue is measured as the amount expected to be received in exchange for providing insurance contract services for a group of insurance contracts issued. It consists of the sum of changes in the liabilities for remaining coverage as following and insurance acquisition cash flows:

ⅰ) Insurance service expenses incurred during the period, measured at the amount estimated at the inception date (excluding transaction-related taxes collected on behalf of third parties, allocated amounts to loss components, insurance acquisition costs, investment components repaid to policyholders even if an insured event does not occur, and the executed loan from insurance contracts).

ⅱ) Changes in the risk adjustment for non-financial risks (excluding allocated amounts to loss components and changes related to future services).

ⅲ) Contractual service margin recognized in the current period as profit or loss (contractual service margin allocated to current coverage units among all coverage units calculated considering the quantity of benefits payments and the expected duration for coverage within the group of insurance contracts issued, and the frequency and severity of occurrence of insured events.

ⅳ) Other amounts such as experience adjustments on premiums collected for current or past services.

The Group determines insurance revenue related to insurance acquisition cash flows by allocating the portion of the premiums that related to recovering those cash flows to each reporting period in a systematic way on the basis of the passage of time; also, recognizes the same amount as insurance service expenses.

*ⅲ-2) Recognition of insurance revenue under the premium allocation approach*

Under the premium allocation approach, insurance revenue is recognized by allocating the expected premium income (excluding investment components) for services provided over each period on the basis of the passage of time. However, if the expected pattern of release of risk during the coverage period differs significantly from the passage of time, the expected premium income is calculated on the basis of expected timing of incurred insurance service expenses.

*ⅲ-3) Recognition of insurance service expenses*

The insurance service expenses incurred as a result of issuing the group of insurance contracts issued consist of the following.

ⅰ) Increase in the liabilities for incurred claims and changes in the fulfilment cash flows related to premiums and expenses (excluding repayment of investment components).

ⅱ) Amortization of insurance acquisition cash flows (the same amount is recognized as insurance revenue and insurance service expenses).

ⅲ) Changes in loss components recognized for the first time in onerous groups of contracts and loss components related to future services.

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SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

**3. <u>Material accounting policies (continued)</u>**

**(t) Insurance contracts (continued)** 

*ⅲ) Recognition of insurance revenue and insurance service expenses (continued)*

*ⅲ-4) Recognition of reinsurance revenue and reinsurance service expenses for the group of reinsurance contracts held.*

The revenue and expenses arising from the group of reinsurance contracts held is recognized by adopting the method of recognizing insurance service expenses and insurance revenue of the group of underlying insurance contracts, with adjustments made to reflect the characteristics of reinsurance contracts held (revenue being the amount recovered from reinsurers and expenses being the allocated portion of premiums paid to reinsurers).

*ⅳ) Contract modifications and terminations*

The Group derecognizes the original contract and recognizes the modified contract as a new contract when the insurance contract terms are changed and specific criteria are met. If the contract modification does not meet such criteria, the effect of the contract modification is accounted for as changes in estimated fulfilment cash flows. There were no instances during the current and prior periods where the original contract was removed and the modified contract was recognized as a new contract. When an insurance contract is extinguished (due to expiration, fulfilment, or cancellation of obligations stated in the insurance contract), the Group removes the insurance contract, adjusts the estimated fulfilment cash flows and contractual service margin related to the removed contract within the group of insurance contracts issued, and reflects the removed contract in the number of coverage units of the group of insurance contracts issued.

*ⅴ) Accounting estimates used in the preparation of interim financial statements*

The Group has adopted an accounting policy of not changing the accounting treatment of accounting estimates measured in interim financial statements when preparing subsequent interim financial statements and annual financial statements.

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SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

**3. <u>Material accounting policies (continued)</u>**

**(t) Insurance contracts (continued)** 

*ⅵ) Presentation*

The Group separately presents the book value of insurance contract portfolio, which is an asset, the book value of the insurance contract portfolio, which is a liability, the reinsurance contract portfolio held, which is an asset, and the reinsurance contract portfolio held, which is a liability, respectively, in the consolidated statement of financial position. Furthermore, it distinguishes between insurance revenue and reinsurance service expenses, as well as insurance service expenses and reinsurance revenue, without offsetting them against each other in the statement of comprehensive income.

The Group includes the time value of money and the effects of financial risks, as well as their fluctuations, in insurance finance income (expenses). The Group has elected an accounting policy to disaggregate insurance finance income (expenses) for the period between profit or loss and other comprehensive income. For groups of insurance contracts for which changes in financial risk assumptions significantly affect amounts payable to policyholders, the amount recognized in profit or loss is allocated based on the amounts credited in the current period and those expected to be credited in future periods. For other groups of insurance contracts, the effective interest rate determined at initial recognition is used to calculate insurance finance income (expenses) recognized in profit or loss. For groups of insurance contracts applying the variable fee approach that hold underlying items, insurance finance income or expenses recognized in profit or loss are determined so as to eliminate accounting mismatches with the profit or loss of the underlying items.

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SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

**3. <u>Material accounting policies (continued)</u>**

**(u) Recognition of revenues and expenses** 

The Group's revenues are recognized using five-step revenue recognition model as follows:<br>① 'Identifying the contract' → ② 'Identifying performance obligations' → ③ 'Determining the transaction price' → ④ 'Allocating the transaction price to performance obligations' → ⑤ 'Recognizing the revenue by satisfying performance obligations'.

*i) Interest income and expense* 

Interest income and expense are recognized in profit or loss using the effective interest method.

*ii) Fees and commission income*

The recognition of revenue for financial service fees depends on the purposes for which the fees are assessed and the basis of accounting for any associated financial instrument.

*ii-1) Fees that are an integral part of the effective interest rate of a financial instrument* 

Such fees are generally treated as an adjustment to the effective interest rate. Such fees may include compensation for activities such as evaluating the borrower's financial condition, evaluating and recording guarantees, collateral and other security arrangements, preparing and processing documents, closing the transaction and the origination fees received on issuing financial liabilities. However, when the financial instrument is measured at fair value with the change in fair value recognized in profit or loss, the fees are recognized as revenue when the instrument is initially recognized.

*ii-2) Fees earned as services are provided* 

Fees and commission income, including investment management fees, sales commission, and account servicing fees, are recognized as the related services are provided.

*ii-3) Fees that are earned on the execution of a significant act* 

The fees that are earned on the execution of a significant act including commission on the allotment of shares or other securities to a client, placement fee for arranging a loan between a borrower and an investor and sales commission, are recognized as revenue when the significant act has been completed.

*iii) Dividend income* 

Dividend income is recognized when the shareholder's right to receive payment is established. Dividend income is categorized on the classification of equity instruments.

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SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

**3. <u>Material accounting policies (continued)</u>**

**(v) Revenue from Contracts with Customers** 

The fair value of the consideration received or receivable in exchange for the initial transaction is allocated to the reward points ("points") and the remainder of the fee income. The Group provides compensation in various forms such as payment discounts and free gifts. The consideration to be allocated to the points is estimated based on the fair value of the monetary benefits to be provided in consideration of the expected recovery rate of points awarded in accordance with the customer loyalty program and the expected time of recovery. The consideration allocated to the points is recognized as a consideration to be paid to the customer and deducted from Fees and commission income.

**(w) Income tax** 

The Group applies the consolidated tax payment system, under which the parent company and its domestic subsidiaries subject to the parent's consolidated control (hereinafter referred to as the " Consolidated Subsidiaries") are treated as a single taxable unit for purposes of calculating a single tax base and tax liability.

The Group evaluates the feasibility of temporary differences, taking into account the future taxable income of individual companies and consolidated groups, respectively. The change in deferred tax assets (liabilities) was recognized as expense (income), except for the amount associated with items directly added to the equity account.

For additional temporary differences in subsidiaries, associates, and joint venture investment interests, the Group may control the timing of the disappearance of temporary differences. All deferred tax liabilities are recognised except in cases where temporary differences are unlikely to dissipate in the foreseeable future. Deferred tax assets arising from deductible temporary differences are likely to be extinguished in the foreseeable future. In addition, it is recognised when taxable income is likely to be used for temporary differences.

The carrying amount of deferred tax assets is reviewed at the end of each reporting period. The carrying amount of deferred tax assets is reduced when it is no longer likely that sufficient taxable income will be generated to use benefits from deferred tax assets.

Tax uncertainties arise from a claim of reassessment or refund of tax that the Group made, or tax investigation etc., due to complexity of transactions or the differences between the Group's tax policy and authority's interpretation. In accordance with K-IFRS No. 2123, the Group recognizes tax assets when anticipating tax refund on the tax paid due to tax authorities imposing, and tax liabilities when anticipating tax payment due to tax investigations, etc. In addition, the amount expected to be paid as a result of the tax investigation is recognized as the tax liability.

The Group is subject to the Global Minimum Corporate Tax Act and applies the temporary exception to deferred tax in K-IFRS No. 1012. As a result, the Group does not recognize deferred tax assets and liabilities related to the Global Minimum Corporate Tax Act and does not disclose information related to the related deferred tax assets. The Group separately discloses the details of the current corporate income tax expense (income) related to the Global Minimum Corporate Tax Act.

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SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

**3. <u>Material accounting policies (continued)</u>**

**(x) Accounting for trust accounts** 

The Group accounts for trust accounts separately from its bank accounts under the Financial Investment Services and Capital Markets Act No. 114. In this regard, the funds lent to the trust account are recognized as trust account loans and loans borrowed from the trust account as other liabilities (payable from trust account). In accordance with the Financial Investment Business Regulations, trust remuneration is acquired in connection with the operation, management, and disposal of trust property, and it is recognized as the operating profit of trust business.

**(y) New standards and amendments not yet adopted by the Group**

The following new accounting standards and amendments have been published that are not mandatory for annual periods beginning after January 1, 2025. The Group did not early adopt the following new standards and amendments when preparing consolidated financial statements.

*i) Amendments to K-IFRS No. 1109 'Financial Instruments' and K-IFRS No. 1107 'Financial Instruments: Disclosures' – Classification and measurement requirements of financial instruments*

*i -1) Derecognition of financial liabilities settled through electronic transfers*

The amendments permit an entity, subject to specified criteria, to consider a financial liability (or a portion thereof) that is settled through an electronic payment system as extinguished (and derecognized) prior to the settlement date. When this accounting policy is elected, it must be applied consistently to all settlements made through the same electronic payment system.

*i -2) Classification of financial assets*

- Contractual terms and conditions consistent with a basic lending arrangement

The amendments provide guidance on how to assess whether the contractual cash flows of a financial asset are consistent with a basic lending arrangement. This guidance is intended to support entities in applying the contractual cash flow characteristics assessment to financial assets with features linked to environmental, social and governance (ESG) factors.

- Non-recourse financial assets

The amendments enhance the explanation of the term 'non-recourse', clarifying in particular that a financial asset has non-recourse characteristics when the entity's ultimate contractual right to receive cash flows is limited to the cash flows generated from specified assets.

- Contractually linked instruments

The amendments clarify the characteristics that distinguish contractually linked instruments from other transactions. Specifically, they emphasize that, in such instruments, the priority of payments to holders of multiple contractually linked instruments (tranches) is established through a waterfall payment structure, resulting in the concentration of credit risk and the uneven allocation of losses among holders of different tranches. In addition, the amendments explain that not all transactions involving multiple debt instruments meet the criteria for contractually linked instruments, and clarify that the pool of underlying assets may include financial assets that are outside the scope of the classification requirements of this Standard.

*i -3) Disclosures* 

- Investments in equity instruments designated at fair value through other comprehensive income (FVOCI)

The requirements of K-IFRS No. 1107 have been amended to require entities to separately present fair value gains or losses related to investments derecognized during the reporting period and those related to investments held at the end of the reporting period, as well as to disclose fair value gains or losses recognized in other comprehensive income during the reporting period.

**3. <u>Material accounting policies (continued)</u>**

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SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

**(y) New standards and amendments not yet adopted by the Group (continued)**

*i) Amendments to K-IFRS No. 1109 'Financial Instruments' and K-IFRS No. 1107 'Financial Instruments: Disclosures' – Classification and measurement requirements of financial instruments (continued)*

*i -3) Disclosures (continued)*

- Contractual terms that may change the timing or amount of contractual cash flows

The amendments require disclosure of contractual terms that may change the timing or amount of contractual cash flows as a result of the occurrence (or non-occurrence) of contingent features that are not directly related to changes in basic lending risks or costs. These disclosure requirements apply to each class of financial assets at amortized cost or at fair value through other comprehensive income, and to each class of financial liabilities measured at amortized cost.

The amendments are effective for annual reporting periods beginning on or after 1 January 2026 with earlier application permitted. The Group expects that there will be no material impact on the consolidated financial statements from these amendments.

*ii) K-IFRS No. 1118 'Presentation and Disclosure in Financial Statements'*

K-IFRS No. 1118 supersedes K-IFRS No. 1001 and introduces new requirements designed to enhance comparability of financial performance among peer companies and provide more relevant information to users. While K-IFRS No. 1118 carries forward many of the requirements of K-IFRS No. 1001 without change, it also introduces new requirements. Certain paragraphs of K-IFRS No. 1001 have been relocated to K-IFRS No. 1008 and K-IFRS No. 1107, and K-IFRS No. 1007 and K-IFRS No. 1033 have been amended.

K-IFRS No. 1118 introduces the following new requirements:

- Presentation of specified categories and defined subtotals in the statement of profit or loss

- Disclosure of management-defined performance measures (MPMs) in the notes to the financial statements

- Improvements to aggregation and disaggregation requirements

The new Standard is effective for annual reporting periods beginning on or after 1 January 2027, with early application permitted. The amendments to K-IFRS No. 1007 and K-IFRS No. 1033, as well as the amended K-IFRS No. 1008 and K-IFRS No. 1107, are effective when K-IFRS No. 1118 is applied. K-IFRS No. 1118 requires retrospective application and provides specific transitional provisions. In accordance with the retrospective application requirements of the Standard, the comparative information for the year ended December 31, 2026 will be restated in accordance with K-IFRS No. 1118.

The Group is currently assessing the impact of the new Standard on its consolidated financial statements. The adoption of the Standard is not expected to affect net income. However, it is expected to affect the determination and presentation of operating profit, as income and expenses in the statement of profit or loss will be classified into new categories.

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SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

**3. <u>Material accounting policies (continued)</u>**

**(y) New standards and amendments not yet adopted by the Group (continued)**

*ⅲ) Annual Improvements to Korean International Financial Reporting Standards (K-IFRS)*

K-IFRS annual improvements are applied for annual reporting periods beginning on or after 1 January 2026 with earlier application permitted. The Group believes that there will be no material impact on the consolidated financial statement.

- K-IFRS No. 1101 '*First-time adoption of Korean International Financial Reporting Standards'* – Hedging accounting by a first-time adopter

- K-IFRS No. 1107 '*Financial Instruments: Disclosures*' – Gain or loss on derecognition

and Guidance on implementing K-IFRS No. 1107

- K-IFRS No. 1109 '*Financial Instruments'* – Derecognition of lease liabilities and transaction price

- K-IFRS No. 1110 *'Consolidated Financial Statements'* – Determination of 'de facto agent'

- K-IFRS No. 1007 '*Statement of Cash Flows*' – Cost method

- K-IFRS No. 1109 '*Financial Instruments'* and K-IFRS No. 1107 '*Financial Instruments: Disclosures'* - Contracts referencing nature-dependent electricity

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SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

**4. <u>Significant estimates and judgments</u>**

The preparation of financial statements requires the Group to make estimates and assumptions concerning the future. Management also needs to exercise judgment in applying the Group's accounting policies. Estimates and assumptions are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. As the resulting accounting estimates will, by definition, seldom equal the related actual results, it can contain a significant risk of causing a material adjustment. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities within the next financial year are discussed below.

**(a) Estimation of impairment of goodwill**

The Group reviews the goodwill annually in accordance with the accounting policy in Note 3. The recoverable amount of the cash-generating unit (group) is determined based on the value-in-use calculation. These calculations are based on estimates.

**(b) Income taxes**

The Group is subject to tax laws from various countries. In the normal course of business, there are various types of transactions and different accounting methods that may add uncertainties to the decision of the final income taxes. The Group has recognized current and deferred taxes that reflect tax consequences based on the best estimates in which the Group expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities. However, actual income taxes in the future may not be identical to the recognized deferred tax assets and liabilities, and this difference can affect current and deferred tax at the period when the final tax effect is determined.

**(c) Fair value of financial instruments**

The fair values of financial instruments (e.g. over-the-counter derivatives) which are not actively traded in the market are determined by using valuation techniques. The Group determines valuation techniques and assumptions based on significant market conditions at the end of each reporting period. Diverse valuation techniques are used to determine the fair value of financial instruments, from generic valuation techniques to internally developed valuation models that incorporate various types of assumptions and variables.

**(d) Allowance for credit loss, guarantees and unused loan commitments**

The Group determines and recognizes allowances for losses on debt securities, loans and other receivables measured at amortized cost or FVOCI, and recognizes provisions for guarantees and unused loan commitments through impairment testing. The accuracy of allowances and provisions for credit losses is determined by the estimation of expected cash flows for individually assessed allowances, and methodology and assumptions used for collectively assessed allowances and provisions for groups of loans, guarantees and unused loan commitments.

**(e) Insurance contract liabilities and reinsurance contract assets (liabilities)**

The Group calculates the present value of the future cash flows of the liabilities for remaining coverage and liabilities for incurring claims for measurement purposes. This involves estimating the unbiased estimate of future cash flows, considering the time value of money, adjusting for financial risks associated with future cash flows, and making risk adjustments for non-financial risks. The measurement of the present value of these cash flows is determined by estimating relevant market variables, assessing uncertainties regarding the amounts and timing of future cash flows, considering actuarial and economic assumptions, and other risks.

The number of coverage units in the group of insurance contracts is determined by considering the quantity of benefit provided by contracts within the group the duration of expected coverage, the frequency and recurrence of the coverage risk for all coverage units allocated to the current period.

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SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

**5. <u>Financial risk management</u>**

**(a) Overview**

Shinhan Financial Group Co., Ltd. (collectively the "Group") manages various risks that may arise within business sector and the major risks to which the Group is exposed include credit risk, market risk, interest rate risk, and liquidity risk. These risks are recognized, measured, controlled and reported in accordance with risk management guidelines established at the controlling company level and at the subsidiary level.

*i) Risk management principles* 

The risk management principles of the Group are as follows:

- All business activities take into account the balance of risks and profits within a predetermined risk appetite.

- The controlling company shall present the Group Risk Management Model Standard, supervise their compliance, and have responsibility and authority for group-level monitoring.

- Operate a risk-related decision-making system that enhances management's involvement.

- Organize and operate risk management organizations independent of the business sector.

- Operate a performance management system that clearly considers risks when making business decisions.

- Aim for preemptive and practical risk management functions.

- Share a cautious view to prepare for possible deterioration of the situation.

*ii) Risk management organization*

The fundamental policies for risk management of the Group are established by the Board of Directors of the controlling company, while the basic risk management strategies are established by the Risk Management Committee (the "Group Risk Management Committee") within the controlling company's Board of Directors. The Group's Chief Risk Officer (CRO) assists the Group Risk Management Committee and consults the risk management policies and strategies of the group and each subsidiary through the Group Risk Council, which includes the Chief Risk Officer of each subsidiary. The subsidiary implements the risk management policies and strategies of the Group through each company's risk management committee, risk-related committee, and risk management organization, and consistently establishes and implements the detailed risk management policies and strategies of the subsidiary. The risk management team of the controlling company assists the Group's Chief Risk Officer for risk management and supervision.

The Group has a hierarchical limit system to manage the risks of the Group to an appropriate level. The Group Risk Management Committee sets the risk limits that can be acceptable by the Group and each subsidiary, while the Risk Management Committee and the management-level risk Commitees of each subsidiary set and manage detailed risk limits by risk, department, desk, and product types.

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SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

**5. <u>Financial risk management (continued)</u>**

**(a) Overview (continued)**

*ii) Risk management organization (continued)*

*ii-1) Group Risk Management Committee*

The Committee establishes the risk management framework for the controlling company and each of its subsidiaries and comprehensively manages Group-wide risk-related matters, including the establishment of the Group's fundamental risk management policies and strategies and the approval of limits. The Committee consists of directors of the controlling company.

The resolution of the Committee is as follows:

-Establish risk management basic policy in line with management strategy

-Determine the level of risk that can be assumed by the Group and each subsidiary

-Approve appropriate investment limit or loss allowance limit

-Enact and amend the Group Risk Management Regulations and the Group Risk Council Regulations

-Matters concerning risk management organization structure and division of duties

-Matters concerning the operation of the risk management system

-Matters concerning the establishment of various limits and approval of limits

-Make decisions on approval of the FSS's internal rating based approach for non-retail and retail credit rating systems

-Matters concerning risk disclosure policy

-Analysis of crisis situation, related capital management plan and financing plan

-Matters deemed necessary by the board of directors

-Matters required by external regulations such as the Financial Services Commission and other regulations and guidelines

-Matters deemed necessary by the Chairman

The resolution of the Group Risk Management Committee is reported to the Board of Directors.<br>

*ii-2) Group Risk Management Council*

<br>In order to maintain the Group's risk management policies and strategies consistently, the Group resolves matters necessary to discuss overall risk-related issues and to implement the policies set by the Group Risk Management Committee. The members are chaired by the Group's chief risk officer and shall be consist of the chief risk officers of major subsidiaries.

*iii) Group Risk Management System* 

*iii-1) Management of the Risk Capital*

Risk capital refers to the capital required to compensate for the potential loss (risk) if it is actually realized. Risk capital management refers to the management of the risk assets considering its risk appetite, which is a datum point on the level of risk burden compared to available capital, so as to maintain the risk capital at an appropriate level. The Group and subsidiaries establish and operate a risk planning process to reflect the risk plan in advance when establishing financial and business plans for risk capital management, and establish a risk limit management system to control risk to an appropriate level.<br>

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SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

**5. <u>Financial risk management (continued)</u>**

**(a) Overview (continued)**

*iii) Group Risk Management System (continued)* 

*iii-2) Risk Monitoring* 

In order to proactively manage risks by periodically identifying risk factors that can affect the Group's business environment, the Group has established a multi-dimensional risk monitoring system. Each subsidiary is required to report to the Group on key issues that affect risk management at the Group level. The Group prepares weekly, monthly and ad-hoc monitoring reports for Group management, including the CRO.

In addition, the Risk Dashboard is operated to derive abnormal symptoms through three-dimensional monitoring of major portfolios, increased risks, and external environmental changes of assets for each subsidiary. If necessary, the Group takes preemptive risk management to establish and implement countermeasures.

*iii-3) Risk Reviewing* 

When conducting new product, new business and major policy changes, risk factors are reviewed by using a pre-defined checklist to prevent indiscriminate promotion of business that is not easy to judge risk and to support rational decision making. The subsidiary's risk management department conducts a preliminary review and post-monitoring process on products, services, and projects to be pursued in the business division. In case of matters that are linked or jointly promoted with other subsidiaries, the risk reviews are carried out after prior-consultation with the risk management department of the Group.

*iii-4) Crisis Management*

The Group maintains a group wide crisis management system to detect the signals of any risk crisis preemptively and, in the event of a crisis actually happening, to respond on a timely, efficient and flexible basis so as to ensure the Group's survival as a going concern. Each subsidiary maintains crisis planning for four levels of contingencies, namely, 'cautious', 'alert', 'imminent crisis' and 'crisis' determination of which is made based on quantitative and qualitative monitoring and consequence analysis, and upon the happening of any such contingency, is required to respond according to a prescribed contingency plan. At the controlling company level, the Group maintains and installs crisis detection and response system which is applied consistently group-wide, and upon the happening of any contingency at two or more subsidiary level, the Group directly takes charge of the situation so that the Group manages it on a concerted group wide basis.

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

**5. <u>Financial risk management (continued)</u>**

**(b) Credit risk**

Credit risk is the risk of potential economic loss that may be caused if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and is the largest risk which the Group faces. The Group's credit risk management encompasses all areas of credit that may result in potential economic loss, including not just transactions that are recorded on the balance sheet, but also off-balance-sheet transactions such as guarantees, loan commitments and derivative transactions.

Shinhan Bank's basic policy on credit risk management is determined by the Risk Policy Committee. The Risk Policy Committee consists of the chairman of the Chief Risk Officer (CRO), the Chief Credit Officer (CCO), the head of the business group, and the head of the risk management department. The Risk Policy Committee decides the credit risk management plan and the direction of the loan policy for the entire bank. Apart from the Risk Policy Committee, the Credit Review Committee is established to separate credit monitoring, such as large loans and limit approval, and is composed of chairman, the CCO, CRO and the head of the Group in charge of the credit-related business group, the head of the credit planning department, and the senior examination team to enhance the credit quality of the loan and profitability of operation.

Shinhan Bank's credit risk management includes processes such as credit evaluation, credit monitoring and supervision, credit risk measurement of counterparties and limit management processes and credit risk measurements for portfolios. All loan customers of Shinhan Bank are evaluated and managed with credit ratings. Retail customers are evaluated by summing up customer information from Shinhan Bank's internal information and external credit information, and the corporate customers are evaluated by considering financial and non-financial items such as industrial risk, operating risk, and management risk. The evaluated credit rating is used for credit approval, limit management, pricing, credit loss provisioning, etc., and is the basis for credit risk management. The credit evaluation system is divided into an evaluation system for retail customers, a small office home office ("SOHO") evaluation system, and an evaluation system for corporate customers. It is subdivided and refined by each model to reflect the Basel III requirements. The corporate credit decision is based on a collective decision-making system, making objective and prudent decisions. In the case of a general credit of loans, the credit is approved based on the consultation between branch RM's (Relationship Manager) and loan officers of each business division's headquarters. In the case of a large or important credit, the credit is approved by the review council. In particular, the Credit Review Committee, the highest decision-making body for loan approvals, reviews for important loans such as large loans. Credits for retail customers are monitored by an automated credit scoring systems (CSS) based on objective statistical methods and bank credit policies.

Shinhan Bank operates a regular monitoring system for the regular management of individual loans. The loan officers and RM's evaluate the adequacy of the result of the loan review by automatically searching for anticipated insolvent companies among business loan partners, and if necessary, the credit rating of the corporate is adjusted. In accordance with these procedures, corporate customers are classified either as an early warning company, an observation company, or a normal company, and then managed differently according to management guidelines for each risk classification, thereby mitigating the risk of insolvency of the loan at an early stage. The financial analysis support system affiliated with a professional credit rating agency supports credit screening and management, and the credit planning department calculates and manages industrial grades, and analyzes and provides industry trends and company information. In order to control the credit risk for the credit portfolio to an appropriate level, credit VaR limits are set and managed for each business and business sector, and to prepare for the credit risk caused by biased exposure to specific sectors, the Group sets and manages exposure limits for each sector by party, industry, country, etc.

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

&nbsp;&nbsp;&nbsp;&nbsp;**5. <u>Financial risk management (continued)</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(b) Credit risk (continued)**

Shinhan Card Co., Ltd. 's basic policy on credit risk is determined by the Risk Management Committee. The Risk Management Committee (RMC) consists of the Chief Risk Officer (CRO) as the chairperson, along with the heads of business and supporting groups, related department heads, and the Risk Management Manager. Apart from the RMC, a credit committee in charge of monitoring corporate credits and other important credits over a certain amount, has been established to separate credit policy decisions from credit monitoring.

Shinhan Card Co., Ltd.'s credit rating system is divided into ASS (Application Scoring System) and BSS (Behavior Scoring System). Unless a customer falls under "rejection due to policy" (such circumstances include delinquency of other credit card companies) and his/her credit rating is above a certain rate, an application of ASS is approved. There is a separate screening criterion for credit card customers, who have maintained a long-term relationship with the Group and have a good credit history. In addition, the elements of credit ratings are used as the basis for setting limits when issuing cards. The BSS, which is recalculated monthly, predicts the delinquency probability of cardholders, and is utilized to monitor member and portfolio risk.

*i) Techniques, assumptions and input variables used to measure impairment*

*i-1) Determining significant increases in credit risk since initial recognition*

At the end of each reporting period, the Group assesses whether the credit risk on a financial instrument has increased significantly since initial recognition. When making the assessment, the Group uses the change in the risk of a default occurring over the expected life of the financial instrument instead of the change in the amount of expected credit losses.

To make the assessment, the Group compares the risk of a default occurring on the financial instrument as at the reporting date with the risk of a default occurring on the financial instrument as at the date of initial recognition and considers reasonable and supportable information, that is available without undue cost or effort, and is indicative of significant increases in credit risk since initial recognition. Information includes the default experience data held by the Group and analysis by an internal credit rating expert.

1 Measuring the risk of default

The Group assigns an internal credit risk rating to each individual exposure based on observable data and historical experiences that have been found to have a reasonable correlation with the risk of default. The internal credit risk rating is determined by considering both qualitative and quantitative factors that indicate the risk of default, which may vary depending on the nature of the exposure and the type of borrower.

2 Measuring term structure of probability of default

Internal credit risk ratings are the main variable input to determine the duration structure for the risk of default. The Group accumulates information after analyzing the information regarding exposure to credit risk and default information by the type of product and borrower and results of internal credit risk assessment. For some portfolios, the Group uses information obtained from external credit rating agencies when performing these analyses.

The Group applies statistical techniques to estimate the probability of default for the remaining life of the exposure from the accumulated data and to estimate changes in the estimated probability of default over time.

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5. <u>Financial risk management (continued)</u>**

**(b) Credit risk (continued)**

*i) Techniques, assumptions and input variables used to measure impairment (continued)*

*i-1) Determining significant increases in credit risk since initial recognition (continued)*

3 Significant increases in credit risk

The Group uses the indicators defined as per portfolio to determine the significant increase in credit risk and such indicators generally consist of changes in the risk of default estimated from changes in the internal credit risk rating, qualitative factors, days of delinquency, and others. The method used to determine whether credit risk of financial instruments has significantly increased after the initial recognitions is summarized as follows:

---

| | | |
|:---|:---|:---|
| **Corporate exposures** | **Retail exposures** | **Card exposures** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Significant change in credit ratings | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Significant change in credit ratings | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Significant change in credit ratings |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Continued past due more than 30 days | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Continued past due more than 30 days | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Continued past due more than 7 days (personal card) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loan classification of precautionary or below | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loan classification of precautionary or below | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loan classification of precautionary or below |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Borrower with early warning signals | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Borrower with early warning signals | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Specific pool segment |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Negative net assets | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Specific pool segment |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Adverse audit opinion or disclaimer of opinion | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Collective loans for housing for which the constructors are insolvent |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest coverage ratio below 1 for a consecutive period of three years or negative cash flows from operating activities for a consecutive period of two years | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loans with identified indicators for significant increases in other credit risk |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loans with identified indicators for significant increases in other credit risk |  |  |

---

The Group assumes that the credit risk of the financial instrument has been increased significantly since initial recognition if a specific exposure is past due more than 30 days (except, for card exposures if it is past due more than 7 days). The Group counts the number of days past due from the earliest date on which the Group fails to fully receive the contractual payments from the borrower, and does not take into account any grace period granted to the borrower.

The Group regularly reviews the criteria for determining if there has been a significant increase in credit risk from the following perspective:

- A significant increase in credit risk shall be identified prior to the occurrence of default.

- The criteria established to judge the significant increase in credit risk shall have a more predictive power than the criteria for days of delinquency.

- As a result of applying the judgment criteria, management would not expect frequent movement between the 12-month expected credit loss accumulation target and the entire period expected credit loss accumulation target.

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

**5. <u>Financial risk management (continued)</u>**

**(b) Credit risk (continued)**

*i) Techniques, assumptions and input variables used to measure impairment (continued)*

*i-2) Modified financial assets*

If the contractual cash flows on a financial asset have been modified through renegotiation and the financial asset is not derecognized, the Group assesses whether there has been a significant increase in the credit risk of the financial instrument by comparing the risk of a default occurring at initial recognition based on the original, unmodified contractual terms and the risk of a default occurring at the reporting date based on the modified contractual terms.

The Group may adjust the contractual cash flows of loans to customers who are in financial difficulties in order to manage the risk of default and enhance the collectability (hereinafter referred to as 'debt restructuring'). These adjustments generally involve extension of maturity, changes in interest payment schedule, and changes in other contractual terms.

Debt restructuring is a qualitative indicator of a significant increase in credit risk and the Group recognizes lifetime expected credit losses for the exposure expected to be the subject of such adjustments. If a borrower faithfully makes payments of contractual cash flows that are modified in accordance with the debt restructuring or if the borrower's internal credit rating has recovered to the level prior to the recognition of the lifetime expected credit losses, the Group recognizes the 12-month expected credit losses for that exposure again.

*i-3) Risk of default*

The Group considers a financial asset to be in default if it meets one or more of the following conditions:

- If a borrower is overdue 90 days or more from the contractual payment date,

- If the Group judges that it is not possible to recover principal and interest without enforcing the collateral on a financial asset

The Group uses the following indicators when determining whether a borrower is in default:

- Qualitative factors (e.g. breach of contractual terms),

- Quantitative factors (e.g. if the same borrower does not perform more than one payment obligations to the Group, the number of days past due per payment obligation. However, in the case of a specific portfolio, the Group uses the number of days past due for each financial instrument),

- Internal observation data and external data

The definition of default applied by the Group generally conforms to the definition of default defined for regulatory capital management purposes; however, depending on the situations, the information used to determine whether a default has occurred and the extent thereof may vary.

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

**5. <u>Financial risk management (continued)</u>**

**(b) Credit risk (continued)**

*i) Techniques, assumptions, and input variables used to measure impairment (continued)*

*i-4) Reflection of forward-looking information*

The Group reflects future forward-looking information presented by a group of internal experts based on various information when measuring expected credit losses. The Group utilizes economic forecasts disclosed by domestic and foreign research institutes, governments, and public institutions to predict forward-looking information.

The Group reflects future macroeconomic conditions anticipated from a neutral standpoint that is free from bias in measuring expected credit losses. Expected credit losses in this respect reflect conditions that are most likely to occur and are based on the same assumptions that the Group used in its business plan and management strategy.

The Group analyzed data from its past experience, derived correlations between major macroeconomic variables and credit risks required for predicting credit risk and credit loss for each portfolio, and then reflected future forecast information through regression estimation. To reflect external and internal economic uncertainties, the Group has incorporated the final forward-looking information by reviewing an additional worst-case scenario along with the three existing scenarios of upside, central and downside.

For the years ended December 31, 2025 and 2024, macroeconomic variables used by the Group are as follows for each scenario.

1Upside scenario

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| &nbsp;&nbsp;**Major variables** <br>**(\*1), (\*2), (\*3)** | &nbsp;&nbsp;**Correlation between credit risks** | &nbsp;&nbsp;**2025.4Q**  | &nbsp;&nbsp;**2026** | &nbsp;&nbsp;**2026** | &nbsp;&nbsp;**2026** | &nbsp;&nbsp;**2026** |
| &nbsp;&nbsp;**Major variables** <br>**(\*1), (\*2), (\*3)** | &nbsp;&nbsp;**Correlation between credit risks** | &nbsp;&nbsp;**2025.4Q**  | &nbsp;&nbsp;**1Q** | &nbsp;&nbsp;**2Q** | &nbsp;&nbsp;**3Q** | &nbsp;&nbsp;**4Q** |
| &nbsp;&nbsp;&nbsp;&nbsp;GDP growth rate (YoY %) | &nbsp;&nbsp;(-) | &nbsp;&nbsp;1.5  | &nbsp;&nbsp;2.9  | &nbsp;&nbsp;2.8  | &nbsp;&nbsp;2.0  | &nbsp;&nbsp;2.0  |
| &nbsp;&nbsp;&nbsp;&nbsp;Private consumption index (YoY %) | &nbsp;&nbsp;(-) | &nbsp;&nbsp;1.9  | &nbsp;&nbsp;3.2  | &nbsp;&nbsp;3.3  | &nbsp;&nbsp;2.2  | &nbsp;&nbsp;2.0  |
| &nbsp;&nbsp;&nbsp;&nbsp;Facility investment growth rate (YoY %) | &nbsp;&nbsp;(-) | &nbsp;&nbsp;(1.7) | &nbsp;&nbsp;1.9  | &nbsp;&nbsp;4.6  | &nbsp;&nbsp;2.2  | &nbsp;&nbsp;1.7  |
| &nbsp;&nbsp;&nbsp;&nbsp;Consumer price index growth rate (%) | &nbsp;&nbsp;(+) | &nbsp;&nbsp;2.4  | &nbsp;&nbsp;2.1  | &nbsp;&nbsp;2.1  | &nbsp;&nbsp;2.2  | &nbsp;&nbsp;2.2  |
| &nbsp;&nbsp;&nbsp;&nbsp;Balance on current account (100 million dollars) | &nbsp;&nbsp;(-) | &nbsp;&nbsp;300.0  | &nbsp;&nbsp;220.0  | &nbsp;&nbsp;230.0  | &nbsp;&nbsp;240.0  | &nbsp;&nbsp;260.0  |
| &nbsp;&nbsp;&nbsp;&nbsp;Government bond 3y yields (%) | &nbsp;&nbsp;- | &nbsp;&nbsp;2.8  | &nbsp;&nbsp;2.6  | &nbsp;&nbsp;2.6  | &nbsp;&nbsp;2.7  | &nbsp;&nbsp;2.7  |

---

2 Central scenario

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| &nbsp;&nbsp;**Major variables** <br>**(\*1), (\*2), (\*3)** | &nbsp;&nbsp;**Correlation between credit risks** | &nbsp;&nbsp;**2025.4Q** | &nbsp;&nbsp;**2026** | &nbsp;&nbsp;**2026** | &nbsp;&nbsp;**2026** | &nbsp;&nbsp;**2026** |
| &nbsp;&nbsp;**Major variables** <br>**(\*1), (\*2), (\*3)** | &nbsp;&nbsp;**Correlation between credit risks** | &nbsp;&nbsp;**2025.4Q** | &nbsp;&nbsp;**1Q** | &nbsp;&nbsp;**2Q** | &nbsp;&nbsp;**3Q** | &nbsp;&nbsp;**4Q** |
| &nbsp;&nbsp;&nbsp;&nbsp;GDP growth rate (YoY %) | &nbsp;&nbsp;(-) | &nbsp;&nbsp;1.5  | &nbsp;&nbsp;2.4  | &nbsp;&nbsp;2.1  | &nbsp;&nbsp;1.3  | &nbsp;&nbsp;1.3  |
| &nbsp;&nbsp;&nbsp;&nbsp;Private consumption index (YoY %) | &nbsp;&nbsp;(-) | &nbsp;&nbsp;1.9  | &nbsp;&nbsp;2.7  | &nbsp;&nbsp;2.6  | &nbsp;&nbsp;1.2  | &nbsp;&nbsp;1.2  |
| &nbsp;&nbsp;&nbsp;&nbsp;Facility investment growth rate (YoY %) | &nbsp;&nbsp;(-) | &nbsp;&nbsp;(1.7) | &nbsp;&nbsp;1.3  | &nbsp;&nbsp;3.9  | &nbsp;&nbsp;1.8  | &nbsp;&nbsp;1.0  |
| &nbsp;&nbsp;&nbsp;&nbsp;Consumer price index growth rate (%) | &nbsp;&nbsp;(+) | &nbsp;&nbsp;2.4  | &nbsp;&nbsp;1.6  | &nbsp;&nbsp;1.8  | &nbsp;&nbsp;2.0  | &nbsp;&nbsp;2.0  |
| &nbsp;&nbsp;&nbsp;&nbsp;Balance on current account (100 million dollars) | &nbsp;&nbsp;(-) | &nbsp;&nbsp;300.0  | &nbsp;&nbsp;210.0  | &nbsp;&nbsp;220.0  | &nbsp;&nbsp;230.0  | &nbsp;&nbsp;250.0  |
| &nbsp;&nbsp;&nbsp;&nbsp;Government bond 3y yields (%) | &nbsp;&nbsp;- | &nbsp;&nbsp;2.8  | &nbsp;&nbsp;2.3  | &nbsp;&nbsp;2.4  | &nbsp;&nbsp;2.4  | &nbsp;&nbsp;2.5  |

---

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SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

**5. <u>Financial risk management (continued)</u>**

(b) Credit risk (continued)

*i) Techniques, assumptions and input variables used to measure impairment (continued)*

*i-4) Reflection of forward-looking information (continued)*

3 Downside scenario

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| &nbsp;&nbsp;**Major variables** <br>**(\*1), (\*2), (\*3)** | &nbsp;&nbsp;**Correlation**<br>**between credit risks** | &nbsp;&nbsp;**2025.4Q** | &nbsp;&nbsp;**2026** | &nbsp;&nbsp;**2026** | &nbsp;&nbsp;**2026** | &nbsp;&nbsp;**2026** |
| &nbsp;&nbsp;**Major variables** <br>**(\*1), (\*2), (\*3)** | &nbsp;&nbsp;**Correlation**<br>**between credit risks** | &nbsp;&nbsp;**2025.4Q** | &nbsp;&nbsp;**1Q** | &nbsp;&nbsp;**2Q** | &nbsp;&nbsp;**3Q** | &nbsp;&nbsp;**4Q** |
| &nbsp;&nbsp;&nbsp;&nbsp;GDP growth rate (YoY %) | &nbsp;&nbsp;(-) | &nbsp;&nbsp;1.5 | &nbsp;&nbsp;1.6  | &nbsp;&nbsp;1.0  | &nbsp;&nbsp;0.3  | &nbsp;&nbsp;0.3  |
| &nbsp;&nbsp;&nbsp;&nbsp;Private consumption index (YoY %) | &nbsp;&nbsp;(-) | &nbsp;&nbsp;1.9  | &nbsp;&nbsp;1.4  | &nbsp;&nbsp;1.0  | &nbsp;&nbsp;0.4  | &nbsp;&nbsp;0.5  |
| &nbsp;&nbsp;&nbsp;&nbsp;Facility investment growth rate (YoY %) | &nbsp;&nbsp;(-) | &nbsp;&nbsp;(1.7) | &nbsp;&nbsp;(0.1) | &nbsp;&nbsp;2.4  | &nbsp;&nbsp;1.2  | &nbsp;&nbsp;0.4  |
| &nbsp;&nbsp;&nbsp;&nbsp;Consumer price index growth rate (%) | &nbsp;&nbsp;(+) | &nbsp;&nbsp;2.4  | &nbsp;&nbsp;1.6  | &nbsp;&nbsp;1.7  | &nbsp;&nbsp;1.8  | &nbsp;&nbsp;1.8  |
| &nbsp;&nbsp;&nbsp;&nbsp;Balance on current account (100 million dollars) | &nbsp;&nbsp;(-) | &nbsp;&nbsp;300.0  | &nbsp;&nbsp;190.0  | &nbsp;&nbsp;200.0  | &nbsp;&nbsp;210.0  | &nbsp;&nbsp;230.0  |
| &nbsp;&nbsp;&nbsp;&nbsp;Government bond 3y yields (%) | &nbsp;&nbsp;- | &nbsp;&nbsp;2.8  | &nbsp;&nbsp;2.1  | &nbsp;&nbsp;1.9  | &nbsp;&nbsp;1.6  | &nbsp;&nbsp;1.7  |

---

4 Worst scenario

---

| | | |
|:---|:---|:---|
| &nbsp;&nbsp;**Major variables (\*1), (\*2), (\*4)** | &nbsp;&nbsp;**Correlation**<br>**between credit risks** | &nbsp;&nbsp;**Economic Crisis for 1 year** |
| &nbsp;&nbsp;**Major variables (\*1), (\*2), (\*4)** | &nbsp;&nbsp;**Correlation**<br>**between credit risks** | &nbsp;&nbsp;**Economic Crisis for 1 year** |
| &nbsp;&nbsp;GDP growth rate (YoY %) | &nbsp;&nbsp;(-) | &nbsp;&nbsp;(5.1) |
| &nbsp;&nbsp;&nbsp;&nbsp;Private consumption index (YoY %) | &nbsp;&nbsp;(-) | &nbsp;&nbsp;(11.9) |
| &nbsp;&nbsp;&nbsp;&nbsp;Facility investment growth rate (YoY %) | &nbsp;&nbsp;(-) | &nbsp;&nbsp;(38.6) |
| &nbsp;&nbsp;&nbsp;&nbsp;Consumer price index growth rate (%) | &nbsp;&nbsp;(+) | &nbsp;&nbsp;7.5  |
| &nbsp;&nbsp;&nbsp;&nbsp;Balance on current account (100 million dollars) | &nbsp;&nbsp;(-) | &nbsp;&nbsp;401.1  |
| &nbsp;&nbsp;&nbsp;&nbsp;Government bond 3y yields (%) | &nbsp;&nbsp;- | &nbsp;&nbsp;4.6 |

---

(\*1) As a result of examining the correlation between each variable, the Group applied key variables to reflect the final future economic outlook. Shinhan Bank applied key variables such as GDP growth rate, current account balance, and 3-year government bond yield, while Shinhan Card Co., Ltd. applied key variables such as GDP growth rate. In addition to the table above, the Group has selected macroeconomic indicators such as unemployment rate.

(\*2) Considering the default forecast period, the Group reflected the future economic outlook.

(\*3) The macroeconomic outlook figures are estimated by the Group for the purpose of calculating expected credit losses based on information from domestic and foreign research institutes. Therefore, it could be different from other institutions' estimates.

(\*4) Reflected considering the foreign exchange crisis.

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

**5. <u>Financial risk management (continued)</u>**

**(b) Credit risk (continued)**

*i) Techniques, assumptions and input variables used to measure impairment (continued)*

*i-4) Reflection of forward-looking information (continued)*

1Upside scenario

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| &nbsp;&nbsp;**Major variables** <br>**(\*1), (\*2), (\*3)** | &nbsp;&nbsp;**Correlation between credit risks** | &nbsp;&nbsp;**2024.4Q**  | &nbsp;&nbsp;**2025** | &nbsp;&nbsp;**2025** | &nbsp;&nbsp;**2025** | &nbsp;&nbsp;**2025** |
| &nbsp;&nbsp;**Major variables** <br>**(\*1), (\*2), (\*3)** | &nbsp;&nbsp;**Correlation between credit risks** | &nbsp;&nbsp;**2024.4Q**  | &nbsp;&nbsp;**1Q** | &nbsp;&nbsp;**2Q** | &nbsp;&nbsp;**3Q** | &nbsp;&nbsp;**4Q** |
| &nbsp;&nbsp;&nbsp;&nbsp;GDP growth rate (YoY %) | &nbsp;&nbsp;(-) | &nbsp;&nbsp;2.1 | &nbsp;&nbsp;1.5 | &nbsp;&nbsp;2.4 | &nbsp;&nbsp;3.2 | &nbsp;&nbsp;2.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;Private consumption index (YoY %) | &nbsp;&nbsp;(-) | &nbsp;&nbsp;1.2 | &nbsp;&nbsp;1.6 | &nbsp;&nbsp;2.5 | &nbsp;&nbsp;2.6 | &nbsp;&nbsp;2.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;Facility investment growth rate (YoY %) | &nbsp;&nbsp;(-) | &nbsp;&nbsp;4.9 | &nbsp;&nbsp;4.4 | &nbsp;&nbsp;6.5 | &nbsp;&nbsp;1.2 | &nbsp;&nbsp;3.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;Consumer price index growth rate (%) | &nbsp;&nbsp;(+) | &nbsp;&nbsp;1.6 | &nbsp;&nbsp;2.2 | &nbsp;&nbsp;2.4 | &nbsp;&nbsp;2.4 | &nbsp;&nbsp;2.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;Balance on current account (100 million dollars) | &nbsp;&nbsp;(-) | &nbsp;&nbsp;220.0 | &nbsp;&nbsp;210.0 | &nbsp;&nbsp;190.0 | &nbsp;&nbsp;180.0 | &nbsp;&nbsp;200.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;Government bond 3y yields (%) | &nbsp;&nbsp;- | &nbsp;&nbsp;2.8 | &nbsp;&nbsp;3.1 | &nbsp;&nbsp;3.2 | &nbsp;&nbsp;3.2 | &nbsp;&nbsp;3.2 |

---

2 Central scenario

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| &nbsp;&nbsp;**Major variables** <br>**(\*1), (\*2), (\*3)** | &nbsp;&nbsp;**Correlation between credit risks** | &nbsp;&nbsp;**2024.4Q** | &nbsp;&nbsp;**2025** | &nbsp;&nbsp;**2025** | &nbsp;&nbsp;**2025** | &nbsp;&nbsp;**2025** |
| &nbsp;&nbsp;**Major variables** <br>**(\*1), (\*2), (\*3)** | &nbsp;&nbsp;**Correlation between credit risks** | &nbsp;&nbsp;**2024.4Q** | &nbsp;&nbsp;**1Q** | &nbsp;&nbsp;**2Q** | &nbsp;&nbsp;**3Q** | &nbsp;&nbsp;**4Q** |
| &nbsp;&nbsp;&nbsp;&nbsp;GDP growth rate (YoY %) | &nbsp;&nbsp;(-) | &nbsp;&nbsp;2.1 | &nbsp;&nbsp;1.2 | &nbsp;&nbsp;2.0 | &nbsp;&nbsp;2.4 | &nbsp;&nbsp;2.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;Private consumption index (YoY %) | &nbsp;&nbsp;(-) | &nbsp;&nbsp;1.2 | &nbsp;&nbsp;1.3 | &nbsp;&nbsp;2.1 | &nbsp;&nbsp;2.0 | &nbsp;&nbsp;1.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;Facility investment growth rate (YoY %) | &nbsp;&nbsp;(-) | &nbsp;&nbsp;4.9 | &nbsp;&nbsp;4.0 | &nbsp;&nbsp;5.8 | &nbsp;&nbsp;0.8 | &nbsp;&nbsp;2.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;Consumer price index growth rate (%) | &nbsp;&nbsp;(+) | &nbsp;&nbsp;1.6 | &nbsp;&nbsp;1.9 | &nbsp;&nbsp;2.1 | &nbsp;&nbsp;2.1 | &nbsp;&nbsp;2.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;Balance on current account (100 million dollars) | &nbsp;&nbsp;(-) | &nbsp;&nbsp;200.0 | &nbsp;&nbsp;190.0 | &nbsp;&nbsp;170.0 | &nbsp;&nbsp;160.0 | &nbsp;&nbsp;180.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;Government bond 3y yields (%) | &nbsp;&nbsp;- | &nbsp;&nbsp;2.8 | &nbsp;&nbsp;2.9 | &nbsp;&nbsp;2.9 | &nbsp;&nbsp;3.0 | &nbsp;&nbsp;2.9 |

---

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

**5. <u>Financial risk management (continued)</u>**

**(b) Credit risk (continued)**

*i) Techniques, assumptions and input variables used to measure impairment (continued)*

*i-4) Reflection of forward-looking information (continued)*

3Downside scenario

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| &nbsp;&nbsp;**Major variables** <br>**(\*1), (\*2), (\*3)** | &nbsp;&nbsp;**Correlation**<br>**between credit risks** | &nbsp;&nbsp;**2024.4Q** | &nbsp;&nbsp;**2025**  | &nbsp;&nbsp;**2025**  | &nbsp;&nbsp;**2025**  | &nbsp;&nbsp;**2025**  |
| &nbsp;&nbsp;**Major variables** <br>**(\*1), (\*2), (\*3)** | &nbsp;&nbsp;**Correlation**<br>**between credit risks** | &nbsp;&nbsp;**2024.4Q** | &nbsp;&nbsp;**1Q** | &nbsp;&nbsp;**2Q** | &nbsp;&nbsp;**3Q** | &nbsp;&nbsp;**4Q** |
| &nbsp;&nbsp;&nbsp;&nbsp;GDP growth rate (YoY %) | &nbsp;&nbsp;(-) | &nbsp;&nbsp; 2.1 | &nbsp;&nbsp;0.8 | &nbsp;&nbsp;1.4 | &nbsp;&nbsp;1.7 | &nbsp;&nbsp;1.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;Private consumption index (YoY %) | &nbsp;&nbsp;(-) | &nbsp;&nbsp;1.2 | &nbsp;&nbsp;0.9 | &nbsp;&nbsp;1.5 | &nbsp;&nbsp;1.1 | &nbsp;&nbsp;0.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;Facility investment growth rate (YoY %) | &nbsp;&nbsp;(-) | &nbsp;&nbsp;4.9 | &nbsp;&nbsp;2.8 | &nbsp;&nbsp;4.5 | &nbsp;&nbsp;0.2 | &nbsp;&nbsp;1.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;Consumer price index growth rate (%) | &nbsp;&nbsp;(+) | &nbsp;&nbsp;1.6 | &nbsp;&nbsp;1.6 | &nbsp;&nbsp;1.8 | &nbsp;&nbsp;1.8 | &nbsp;&nbsp;1.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;Balance on current account (100 million dollars) | &nbsp;&nbsp;(-) | &nbsp;&nbsp;170.0 | &nbsp;&nbsp;160.0 | &nbsp;&nbsp;140.0 | &nbsp;&nbsp;120.0 | &nbsp;&nbsp;130.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;Government bond 3y yields (%) | &nbsp;&nbsp;- | &nbsp;&nbsp;2.8 | &nbsp;&nbsp;2.8 | &nbsp;&nbsp;2.7 | &nbsp;&nbsp;2.4 | &nbsp;&nbsp;2.2 |

---

4 Worst scenario

---

| | | |
|:---|:---|:---|
| &nbsp;&nbsp;**Major variables (\*1), (\*2), (\*4)** | &nbsp;&nbsp;**Correlation**<br>**between credit risks** | &nbsp;&nbsp;**Economic Crisis for 1 year** |
| &nbsp;&nbsp;**Major variables (\*1), (\*2), (\*4)** | &nbsp;&nbsp;**Correlation**<br>**between credit risks** | &nbsp;&nbsp;**Economic Crisis for 1 year** |
| &nbsp;&nbsp;GDP growth rate (YoY %) | &nbsp;&nbsp;(-) | &nbsp;&nbsp;(5.1) |
| &nbsp;&nbsp;&nbsp;&nbsp;Private consumption index (YoY %) | &nbsp;&nbsp;(-) | &nbsp;&nbsp;(11.9) |
| &nbsp;&nbsp;&nbsp;&nbsp;Facility investment growth rate (YoY %) | &nbsp;&nbsp;(-) | &nbsp;&nbsp;(38.6) |
| &nbsp;&nbsp;&nbsp;&nbsp;Consumer price index growth rate (%) | &nbsp;&nbsp;(+) | &nbsp;&nbsp;7.5  |
| &nbsp;&nbsp;&nbsp;&nbsp;Balance on current account (100 million dollars) | &nbsp;&nbsp;(-) | &nbsp;&nbsp;401.1  |
| &nbsp;&nbsp;&nbsp;&nbsp;Government bond 3y yields (%) | &nbsp;&nbsp;- | &nbsp;&nbsp;6.2 |

---

(\*1) As a result of examining the correlation between each variable, the Group applied key variables to reflect the final future economic outlook. Shinhan Bank applied key variables such as GDP growth rate, current account balance, and 3-year government bond yield, while Shinhan Card Co., Ltd. applied key variables such as GDP growth rate. In addition to the table above, the Group has selected macroeconomic indicators such as KOSPI index.

(\*2) Considering the default forecast period, the Group reflected the future economic outlook.

(\*3) The macroeconomic outlook figures are estimated by the Group for the purpose of calculating expected credit losses based on information from domestic and foreign research institutes. Therefore, it could be different from other institutions' estimates.

(\*4) Reflected considering the foreign exchange crisis.

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

**5. <u>Financial risk management (continued)</u>**

**(b) Credit risk (continued)**

*i) Techniques, assumptions and input variables used to measure impairment (continued)*

*i-4) Reflection of forward-looking information (continued)*

The predicted correlations between the macroeconomic variables and the risk of default, used by the Group, are derived based on long-term data over the past ten years.

Since 2020, the Group has been implementing various policy support measures in response to the economic downturn caused by COVID-19. The Group manages the credit risk through classifying borrowers in moratorium of interest payments and moratorium of repayment that is one of the financial relief programs into Stage2 to reflect the impact of potential insolvency. In addition, credit risk is managed through additional expected loss assessments for non-retail and retail SOHO loans of borrowers holding the relevant loans, extended maturity loans and estimated loss loans from financial support programs. The Group has considered multiple economic scenarios in applying forward-looking information to measure the expected credit losses. Assuming a 100% weighting for each of the Upside, Central, Downside, and Worst scenarios, with all other assumptions held constant, the sensitivity of the Group's provision for expected credit losses is not significant for the years ended December 31, 2025 and 2024.

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

**5. <u>Financial risk management (continued)</u>**

**(b) Credit risk (continued)**

*i) Techniques, assumptions and input variables used to measure impairment (continued)*

*i-5) Measurement of expected credit losses*

Key variables used in measuring expected credit losses are as follows:

- Probability of default ("PD")

- Loss given default ("LGD")

- Exposure at default ("EAD")

These variables have been estimated from historical experience data by using the statistical techniques developed internally by the Group and have been adjusted to reflect forward-looking information.

Estimates of PD over a specified period are estimated by reflecting characteristics of counterparties and their exposure, based on a statistical model at a specific point of time. The Group uses its own information to develop a statistical credit assessment model used for the estimation, and additional information observed in the market is considered for some portfolios such as a group of large corporates. When a counterparty or exposure is concentrated in specific grades, the method of measuring PD for those grades is adjusted, and the PD for each rating grade is estimated by taking into account the contractual maturity of the exposure.

LGD refers to the expected loss in the event of a default. The Group calculates LGD based on the experience recovery rate measured from past default exposures. The model for measuring LGD is developed to reflect type of collateral, seniority of collateral, type of borrower, and cost of recovery. In particular, LGD for retail loan products uses loan to value (LTV) as a key variable. The recovery rate reflected in the LGD calculation is based on the present value of recovery amount, discounted at the effective interest rate.

EAD refers to the expected exposure at the time of default. The Group derives EAD reflecting a rate at which the current exposure is expected to be used additionally up to the point of default within the contractual limit. EAD of financial assets is equal to the total carrying amount of the assets, and EAD of loan commitments or financial guarantee contracts is calculated as the sum of the amount expected to be used in the future.

In measuring expected credit losses on financial assets, the Group uses the contractual maturity as the period subject to expected credit loss measurement. The contractual maturity is computed taking into account the extension right held by the borrower.

Risk factors of PD for each reporting period, and those of LGD and EAD, are collectively estimated according to the following criteria:

- Type of products

- Internal credit risk rating

- Type of collateral

- Loan to value ("LTV")

- Industry that the borrower belongs to

- Location of the borrower or collateral

- Days of delinquency

The criteria for classifying groups is periodically reviewed to maintain homogeneity of the group and adjusted if necessary. The Group uses external benchmark information to supplement internal information for a particular portfolio that did not have sufficient internal data accumulated from the past experience.

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**5. <u>Financial risk management (continued)</u>**

**(b) Credit risk (continued)**

*i) Techniques, assumptions and input variables used to measure impairment (continued)*

*i-6) Write-off of financial assets*

The Group writes off a portion of or entire loan or debt security that is not expected to receive its principal and interest. In general, the Group conducts write-off when it is deemed that the borrower has no sufficient resources or income to repay the principal and interest. The decision to write off follows the internal regulations of the Group and, if necessary, is carried out after obtaining approval from external institutions. Apart from write-off, the Group may continue to exercise its right of collection under its own recovery policy even after the write-off of financial assets.

*ii) Maximum exposure to credit risk*

Exposure to credit risk is related to due from banks, loans, investments in debt securities, derivative transactions, off-balance sheet items such as loan commitment. The exposures of due from banks and loans are classified into government, bank, corporation or retail based on the exposure classification criteria of Basel III credit risk weights, and the net carrying amount, excluding deductible items such as provisions, is presented as the maximum amount that can be exposed by credit risk.

The details of the maximum exposure to credit risk for financial instruments held as of December 31, 2025 and December 31, 2024 periods are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  |  | **December 31, 2025** | **December 31, 2024** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Due from banks and loans at amortized cost (\*1), (\*3): |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Banks | W | 12658709  | 14058051 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Retail |  | 208308298  | 199809576 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Government/Public sector/Central bank |  | 26417332  | 27228308 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Corporations |  | 226554125  | 218713457 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Card receivable |  | 27695043  | 27714596 |
|  |  | 501633507 | 487523988 |
| Due from banks and loans at FVTPL (\*3): |  |  |  |
| Banks |  | 169972  | 134609 |
| Corporations |  | 1286144  | 1780787 |
|  |  | 1456116 | 1915396 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Securities at FVTPL |  | 71727860  | 67134121 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Securities at FVOCI |  | 101282906  | 92016210 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Securities at amortized cost (\*1) |  | 31944368  | 33315999 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Derivative assets |  | 7153950  | 10279257 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other financial assets (\*1), (\*2) |  | 43323340  | 23116960 |
| Guarantee contracts |  | 26221968  | 22509195 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loan commitments and other credit liabilities |  | 220317053  | 218980794 |
|  | W | 1005061068  | 956791920 |

---

(\*1) The maximum exposure amounts for due from banks, loans, securities at amortized cost and other financial assets at amortized cost are the net carrying amount after deducting the allowance for credit losses.

(\*2) Other financial assets mainly comprise of accounts receivable, accrued income, deposits, domestic exchange settlement debit and suspense payments.

(\*3) Classified as similar credit risk group based on calculation of the BIS ratio under new Basel Capital Accord (Basel III).

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**5. <u>Financial risk management (continued)</u>**

**(b) Credit risk (continued)**

*iii) The maximum amount of exposure to credit risk by type of collateral as of December 31, 2025 and 2024 is as follows:*

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**December 31, 2025** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**December 31, 2025** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**December 31, 2025** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**December 31, 2025** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Classification** |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**12-month**<br>**expected credit losses** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Lifetime expected credit losses** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Lifetime expected credit losses** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Classification** |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**12-month**<br>**expected credit losses** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Non-impaired** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Impaired** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Guarantee | W | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;60850725 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9781605 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;411985 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;71044315 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deposits and <br>Savings |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2825303 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;399325 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2570 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3227198 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Property and <br>equipment |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1603758 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;518626 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4068 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2126452 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Real estate |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;185544412 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;28636383 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;721919 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;214902714 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Securities |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2363043 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;78110 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;34083 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2475236 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Others |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12414 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2000 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14414 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;W | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;253199655 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;39416049 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1174625 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;293790329 |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**December 31, 2024** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**December 31, 2024** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**December 31, 2024** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**December 31, 2024** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Classification** |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**12-month**<br>**expected credit losses** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Lifetime expected credit losses** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Lifetime expected credit losses** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Classification** |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**12-month**<br>**expected credit losses** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Non-impaired** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Impaired** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Guarantee | W | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;55422696 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11872362 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;450079 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;67745137 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deposits and <br>Savings |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2508238 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;401970 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4971 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2915179 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Property and <br>equipment |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1576438 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;367086 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4154 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1947678 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Real estate |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;170210822 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;26682978 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;528200 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;197422000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Securities |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1846531 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;155761 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2002292 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Others |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7687 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7687 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;W | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;231572412 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;39480157 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;987404 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;272039973 |

---

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**5. <u>Financial risk management (continued)</u>**

**(b) Credit risk (continued)**

*iv) Impairment information by credit risk of financial assets*

Details of impaired financial assets due to credit risk as of December 31, 2025 and 2024 are as follows:

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** |
|  |  | **12-month expected credit losses** | **12-month expected credit losses** | &nbsp;&nbsp;**Lifetime expected credit losses** | &nbsp;&nbsp;**Lifetime expected credit losses** | &nbsp;&nbsp;**Lifetime expected credit losses** | **Total** | **Allowances** | **Net** | **Mitigation of credit risk due to collateral** |
|  |  | &nbsp;&nbsp;**Grade 1**  | **Grade 2**  | &nbsp;&nbsp;**Grade 1**  | &nbsp;&nbsp;**Grade 2**  | &nbsp;&nbsp;**Impaired** | **Total** | **Allowances** | **Net** | **Mitigation of credit risk due to collateral** |
| &nbsp;&nbsp;&nbsp;Due from banks and loans at amortized cost: |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Banks | &nbsp;&nbsp;&nbsp;&nbsp;W | 11039981  | 1445815  | 183147  | 121  | - | 12669064  | (10355) | 12658709  | 171  |
| &nbsp;&nbsp;&nbsp; Retail |  | 188215501  | 6674522  | 9227654  | 3991054  | 1252699  | 209361430  | (1053132) | 208308298  | 162423106  |
| &nbsp;&nbsp;&nbsp;&nbsp; Government/Public sector/<br>Central bank |  | 23669547  | 2468610  | 290730  | 11  | - | 26428898  | (11566) | 26417332  | 2597  |
| &nbsp;&nbsp;&nbsp; Corporations |  | 121819093  | 56460975  | 22692064  | 25790138  | 2091404  | 228853674  | (2299549) | 226554125  | 126763442  |
| &nbsp;&nbsp;&nbsp; Card receivable |  | 20649246  | 4449746  | 1060430  | 1976109  | 481682  | 28617213  | (922170) | 27695043  | 18139  |
|  |  | 365393368  | 71499668  | 33454025  | 31757433  | 3825785  | 505930279  | (4296772) | 501633507  | 289207455  |
| &nbsp;&nbsp;&nbsp;Securities at FVOCI (\*) |  | 90408440  | 10847635  | - | 26831  | - | 101282906  | - | 101282906  | - |
| &nbsp;&nbsp;&nbsp;Securities at amortized cost |  | 30031575  | 1921484  | - | - | - | 31953059  | (8691) | 31944368  | - |
|  | W | 485833383  | 84268787  | 33454025  | 31784264  | 3825785  | 639166244  | (4305463) | 634860781  | 289207455  |

---

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**5. <u>Financial risk management (continued)</u>**

**(b) Credit risk (continued)**

*iv) Impairment information by credit risk of financial assets (continued)*

Details of impaired financial assets due to credit risk as of December 31, 2025 and 2024 are as follows (continued):

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
|  |  | **12-month expected credit losses** | **12-month expected credit losses** | &nbsp;&nbsp;**Lifetime expected credit losses** | &nbsp;&nbsp;**Lifetime expected credit losses** | &nbsp;&nbsp;**Lifetime expected credit losses** | **Total** | **Allowances** | **Net** | **Mitigation of credit risk due to collateral** |
|  |  | &nbsp;&nbsp;**Grade 1**  | **Grade 2**  | &nbsp;&nbsp;**Grade 1**  | &nbsp;&nbsp;**Grade 2**  | &nbsp;&nbsp;**Impaired** | **Total** | **Allowances** | **Net** | **Mitigation of credit risk due to collateral** |
| &nbsp;&nbsp;&nbsp;Due from banks and loans at amortized cost: |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Banks | &nbsp;&nbsp;&nbsp;&nbsp;W | 11740875  | 2027427  | 254625  | 60114  | - | 14083041  | (24990) | 14058051  | 27874  |
| &nbsp;&nbsp;&nbsp; Retail |  | 177166099  | 6397386  | 11714193  | 4387929  | 1198594  | 200864201  | (1054625) | 199809576  | 151610129  |
| &nbsp;&nbsp;&nbsp;&nbsp; Government/Public sector/<br>Central bank |  | 25118226  | 2030126  | 83783  | 49  | - | 27232184  | (3876) | 27228308  | 2500  |
| &nbsp;&nbsp;&nbsp; Corporations |  | 117893181  | 55345067  | 20324015  | 25633821  | 1880868  | 221076952  | (2363495) | 218713457  | 117575757  |
| &nbsp;&nbsp;&nbsp; Card receivable |  | 21631071  | 2974287  | 1170078  | 2436456  | 642991  | 28854883  | (1140287) | 27714596  | 18881  |
|  |  | 353549452  | 68774293  | 33546694  | 32518369  | 3722453  | 492111261  | (4587273) | 487523988  | 269235141  |
| &nbsp;&nbsp;&nbsp;Securities at FVOCI (\*) |  | 83218889 | 8736563 | 10034 | 50724 | - | 92016210 | - | 92016210 | - |
| &nbsp;&nbsp;&nbsp;Securities at amortized cost |  | 31103200  | 2219343  | - | 3644  | - | 33326187  | (10188) | 33315999  | - |
|  | W | 467871541  | 79730199  | 33556728  | 32572737  | 3722453 | 617453658  | (4597461) | 612856197  | 269235141 |

---

(\*) Credit loss allowance recognized as other comprehensive income of securities at fair value through other comprehensive income amounted to W 60,301 million and W 38,346 million as of December 31, 2025 and 2024.

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**5. <u>Financial risk management (continued)</u>**

**(b) Credit risk (continued)**

*v) Credit risk exposures per credit grade of off-balance sheet items*

The credit risk exposure for off-balance sheet items such as guarantees, loan commitments, and other credit-related

liabilities as of December 31, 2025 and December 31, 2024 are as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  |  | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** |
|  |  | **Grade 1** | **Grade 2** | **Impaired** | **Total** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Guarantee contracts: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12-month expected credit losses | W | 20555651  | 4535466  | - | 25091117  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Lifetime expected credit losses |  | 964695  | 154378  | - | 1119073  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Impaired |  | - | - | 11778  | 11778  |
|  |  | 21520346  | 4689844  | 11778  | 26221968  |
| &nbsp;&nbsp;Loan commitment and other credit line: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12-month expected credit losses |  | 185899148  | 22774387  | - | 208673535  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Lifetime expected credit losses |  | 8896231  | 2642174  | - | 11538405  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Impaired  |  | - | - | 105113  | 105113  |
|  |  | 194795379  | 25416561  | 105113  | 220317053  |
|  | W | 216315725  | 30106405  | 116891  | 246539021  |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  |  | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
|  |  | **Grade 1** | **Grade 2** | **Impaired** | **Total** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Guarantee contracts: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12-month expected credit losses | W | 19212434  | 2786804  | - | 21999238  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Lifetime expected credit losses |  | 361440  | 127153  | - | 488593  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Impaired |  | - | - | 21364  | 21364  |
|  |  | 19573874  | 2913957  | 21364  | 22509195  |
| &nbsp;&nbsp;Loan commitment and other credit line: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12-month expected credit losses |  | 183928715  | 21687932  | - | 205616647  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Lifetime expected credit losses |  | 10370570  | 2988286  | - | 13358856  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Impaired  |  | - | - | 5291  | 5291  |
|  |  | 194299285  | 24676218  | 5291  | 218980794  |
|  | W | 213873159  | 27590175  | 26655  | 241489989  |

---

*vi) Credit qualities are classified based on the internal credit rating as follows:*

---

| | | |
|:---|:---|:---|
| &nbsp;&nbsp;&nbsp;**Type of Borrower** | &nbsp;&nbsp;&nbsp;**Grade 1** | &nbsp;&nbsp;&nbsp;**Grade 2** |
| &nbsp;&nbsp;&nbsp;Individuals | Probability of default below 2.25% for each pool<br>| Probability of default 2.25% or above for each pool<br>|
| &nbsp;&nbsp;&nbsp;Government/Public agency/Central bank | OECD sovereign credit rating of 6 or above  | OECD sovereign credit rating of below 6  |
| &nbsp;&nbsp;&nbsp;Banks and Corporations<br>(Including credit card bond) | Internal credit rating of BBB+ or above | Internal credit rating of below BBB+ |
| &nbsp;&nbsp;&nbsp;Card receivables (Individuals)<br>| Behavior scoring system of 7 grade or above | Behavior scoring system of below 7 grade  |

---

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**5. <u>Financial risk management (continued)</u>**

**(b) Credit risk (continued)**

*vii) Credit risk exposures per credit quality of derivative assets* 

Credit risk exposures per credit quality of derivative assets as of December 31, 2025 and 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  |  | **December 31, 2025** | **December 31, 2024** |
| &nbsp;&nbsp;&nbsp;&nbsp;Grade 1 | &nbsp;&nbsp;W | &nbsp;&nbsp;6797321 | &nbsp;&nbsp;9578458 |
| &nbsp;&nbsp;&nbsp;&nbsp;Grade 2 |  | &nbsp;&nbsp;356629 | &nbsp;&nbsp;700799 |
|  | &nbsp;&nbsp;W | &nbsp;&nbsp;7153950 | &nbsp;&nbsp;10279257 |

---

(\*) Credit quality of derivative assets is classified based on the internal credit ratings.

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**5. <u>Financial risk management (continued)</u>**

**(b) Credit risk (continued)**

*viii) Concentration by geographic location*

An analysis of concentration by geographic location for financial instrument, net of allowance, as of December 31, 2025 and 2024 are as follows:

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | &nbsp;&nbsp;**December 31, 2025** | &nbsp;&nbsp;**December 31, 2025** | &nbsp;&nbsp;**December 31, 2025** | &nbsp;&nbsp;**December 31, 2025** | &nbsp;&nbsp;**December 31, 2025** | &nbsp;&nbsp;**December 31, 2025** | &nbsp;&nbsp;**December 31, 2025** | &nbsp;&nbsp;**December 31, 2025** | &nbsp;&nbsp;**December 31, 2025** |
| &nbsp;&nbsp;&nbsp;&nbsp;**Classification (\*)** |  | **Korea** | &nbsp;&nbsp; **USA** | &nbsp;&nbsp;**UK** | &nbsp;&nbsp; **Japan** | **Germany** | **Vietnam** | &nbsp;&nbsp;**China** | &nbsp;&nbsp; **Other** | &nbsp;&nbsp;**Total** |
| &nbsp;&nbsp;&nbsp;Due from banks and loans at amortized cost |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Banks | &nbsp;&nbsp;&nbsp;&nbsp;W | &nbsp;&nbsp;4934110  | &nbsp;&nbsp;1409928  | &nbsp;&nbsp;479051  | &nbsp;&nbsp;278851  | &nbsp;&nbsp;363081  | &nbsp;&nbsp;933820  | &nbsp;&nbsp;1078467  | &nbsp;&nbsp;3181401  | &nbsp;&nbsp;12658709  |
| &nbsp;&nbsp;&nbsp;Retail |  | &nbsp;&nbsp;192492848  | &nbsp;&nbsp;595218  | &nbsp;&nbsp;8021  | &nbsp;&nbsp;5464414  | &nbsp;&nbsp;3807  | &nbsp;&nbsp;5054569  | &nbsp;&nbsp;1817292  | &nbsp;&nbsp;2872129  | &nbsp;&nbsp;208308298  |
| &nbsp;&nbsp;&nbsp;&nbsp;Government/Public <br>sector/Central bank |  | &nbsp;&nbsp;15993867  | &nbsp;&nbsp;5354336  | &nbsp;&nbsp;- | &nbsp;&nbsp;2137190  | &nbsp;&nbsp;178022  | &nbsp;&nbsp;403760  | &nbsp;&nbsp;303764  | &nbsp;&nbsp;2046393  | &nbsp;&nbsp;26417332  |
| &nbsp;&nbsp;&nbsp;Corporations |  | &nbsp;&nbsp;193530841  | &nbsp;&nbsp;5498636  | &nbsp;&nbsp;1300654  | &nbsp;&nbsp;8202921  | &nbsp;&nbsp;206108  | &nbsp;&nbsp;4729918  | &nbsp;&nbsp;3476094  | &nbsp;&nbsp;9608953  | &nbsp;&nbsp;226554125  |
| &nbsp;&nbsp;&nbsp;Card receivable |  | &nbsp;&nbsp;27359956  | &nbsp;&nbsp;13936  | &nbsp;&nbsp;477  | &nbsp;&nbsp;3273  | &nbsp;&nbsp;339  | &nbsp;&nbsp;237884  | &nbsp;&nbsp;50429  | &nbsp;&nbsp;28749  | &nbsp;&nbsp;27695043  |
|  |  | &nbsp;&nbsp;434311622  | &nbsp;&nbsp;12872054  | &nbsp;&nbsp;1788203  | &nbsp;&nbsp;16086649  | &nbsp;&nbsp;751357  | &nbsp;&nbsp;11359951  | &nbsp;&nbsp;6726046  | &nbsp;&nbsp;17737625  | &nbsp;&nbsp;501633507  |
| &nbsp;&nbsp;&nbsp;Deposits and loans at FVTPL |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Banks |  | &nbsp;&nbsp;129110  | &nbsp;&nbsp;40862  | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;169972  |
| &nbsp;&nbsp;&nbsp;Corporations |  | &nbsp;&nbsp;1135383  | &nbsp;&nbsp;83254  | &nbsp;&nbsp;- | &nbsp;&nbsp;14424  | &nbsp;&nbsp;- | &nbsp;&nbsp;4133  | &nbsp;&nbsp;- | &nbsp;&nbsp;48950  | &nbsp;&nbsp;1286144  |
|  |  | &nbsp;&nbsp;1264493  | &nbsp;&nbsp;124116  | &nbsp;&nbsp;- | &nbsp;&nbsp;14424  | &nbsp;&nbsp;- | &nbsp;&nbsp;4133  | &nbsp;&nbsp;- | &nbsp;&nbsp;48950  | &nbsp;&nbsp;1456116  |
| Securities at FVTPL |  | &nbsp;&nbsp;65274393  | &nbsp;&nbsp;3720780  | &nbsp;&nbsp;861745  | &nbsp;&nbsp;147328  | &nbsp;&nbsp;7399  | &nbsp;&nbsp;12012  | &nbsp;&nbsp;11839  | &nbsp;&nbsp;1692364  | &nbsp;&nbsp;71727860  |
| Derivative assets |  | &nbsp;&nbsp;5776528  | &nbsp;&nbsp;480953  | &nbsp;&nbsp;17518  | &nbsp;&nbsp;153496  | &nbsp;&nbsp;112892  | &nbsp;&nbsp;6618  | &nbsp;&nbsp;7791  | &nbsp;&nbsp;598154  | &nbsp;&nbsp;7153950  |
| &nbsp;&nbsp;&nbsp;Securities at FVOCI |  | &nbsp;&nbsp;87212394 | &nbsp;&nbsp;7104105 | &nbsp;&nbsp;788292 | &nbsp;&nbsp;771151 | &nbsp;&nbsp;116116 | &nbsp;&nbsp;42978 | &nbsp;&nbsp;779447 | &nbsp;&nbsp;4468423 | &nbsp;&nbsp;101282906 |
| &nbsp;&nbsp;&nbsp;Securities at amortized cost |  | &nbsp;&nbsp;30100982 | &nbsp;&nbsp;206599 | &nbsp;&nbsp;- | &nbsp;&nbsp;432067 | &nbsp;&nbsp;- | &nbsp;&nbsp;465350 | &nbsp;&nbsp;96367 | &nbsp;&nbsp;643003 | &nbsp;&nbsp;31944368 |
|  |  | &nbsp;&nbsp;623940412  | &nbsp;&nbsp;24508607  | &nbsp;&nbsp;3455758  | &nbsp;&nbsp;17605115  | &nbsp;&nbsp;987764  | &nbsp;&nbsp;11891042  | &nbsp;&nbsp;7621490  | &nbsp;&nbsp;25188519  | &nbsp;&nbsp;715198707  |
| &nbsp;&nbsp;&nbsp;Off-balance sheet items |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Guarantees |  | &nbsp;&nbsp;23442408  | &nbsp;&nbsp;802192  | &nbsp;&nbsp;273331  | &nbsp;&nbsp;38669  | &nbsp;&nbsp;26576  | &nbsp;&nbsp;202498  | &nbsp;&nbsp;734356  | &nbsp;&nbsp;701938  | &nbsp;&nbsp;26221968  |
| &nbsp;&nbsp;&nbsp;&nbsp;Loan commitments and <br> other liabilities related to credit |  | &nbsp;&nbsp;210218685  | &nbsp;&nbsp;1546770  | &nbsp;&nbsp;270460  | &nbsp;&nbsp;572774  | &nbsp;&nbsp;126187  | &nbsp;&nbsp;2387567  | &nbsp;&nbsp;1064500  | &nbsp;&nbsp;4130110  | &nbsp;&nbsp;220317053  |
|  | W | &nbsp;&nbsp;233661093  | &nbsp;&nbsp;2348962  | &nbsp;&nbsp;543791  | &nbsp;&nbsp;611443  | &nbsp;&nbsp;152763  | &nbsp;&nbsp;2590065  | &nbsp;&nbsp;1798856  | &nbsp;&nbsp;4832048  | &nbsp;&nbsp;246539021  |

---

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**5. <u>Financial risk management (continued)</u>**

**(b) Credit risk (continued)**

*viii) Concentration by geographic location (continued)*

An analysis of concentration by geographic location for financial instrument, net of allowance, as of December 31, 2025 and 2024 are as follows (continued):

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | &nbsp;&nbsp;**December 31, 2024** | &nbsp;&nbsp;**December 31, 2024** | &nbsp;&nbsp;**December 31, 2024** | &nbsp;&nbsp;**December 31, 2024** | &nbsp;&nbsp;**December 31, 2024** | &nbsp;&nbsp;**December 31, 2024** | &nbsp;&nbsp;**December 31, 2024** | &nbsp;&nbsp;**December 31, 2024** | &nbsp;&nbsp;**December 31, 2024** |
| &nbsp;&nbsp;&nbsp;&nbsp;**Classification (\*)** |  | **Korea** | &nbsp;&nbsp; **USA** | &nbsp;&nbsp;**UK** | &nbsp;&nbsp; **Japan** | **Germany** | **Vietnam** | &nbsp;&nbsp;**China** | &nbsp;&nbsp; **Other** | &nbsp;&nbsp;**Total** |
| &nbsp;&nbsp;&nbsp;Due from banks and loans at amortized cost |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Banks | &nbsp;&nbsp;&nbsp;&nbsp;W | &nbsp;&nbsp;6303730  | &nbsp;&nbsp;1284361  | &nbsp;&nbsp;624468  | &nbsp;&nbsp;334073  | &nbsp;&nbsp;354583  | &nbsp;&nbsp;1295863  | &nbsp;&nbsp;1633954  | &nbsp;&nbsp;2227019  | &nbsp;&nbsp;14058051  |
| &nbsp;&nbsp;&nbsp;Retail |  | &nbsp;&nbsp;185102271  | &nbsp;&nbsp;506525  | &nbsp;&nbsp;7064  | &nbsp;&nbsp;5165687  | &nbsp;&nbsp;3399  | &nbsp;&nbsp;4391692  | &nbsp;&nbsp;2002467  | &nbsp;&nbsp;2630471  | &nbsp;&nbsp;199809576  |
| &nbsp;&nbsp;&nbsp;&nbsp;Government/Public <br>sector/Central bank |  | &nbsp;&nbsp;21716534 | &nbsp;&nbsp;1018284 | &nbsp;&nbsp;- | &nbsp;&nbsp;1914100 | &nbsp;&nbsp;197042 | &nbsp;&nbsp;334366 | &nbsp;&nbsp;360451 | &nbsp;&nbsp;1687531 | &nbsp;&nbsp;27228308 |
| &nbsp;&nbsp;&nbsp;Corporations |  | &nbsp;&nbsp;189219966  | &nbsp;&nbsp;5203409  | &nbsp;&nbsp;789820  | &nbsp;&nbsp;7075869  | &nbsp;&nbsp;218422  | &nbsp;&nbsp;4533648  | &nbsp;&nbsp;3125771  | &nbsp;&nbsp;8546552  | &nbsp;&nbsp;218713457  |
| &nbsp;&nbsp;&nbsp;Card receivable |  | &nbsp;&nbsp;27356847  | &nbsp;&nbsp;12469  | &nbsp;&nbsp;528  | &nbsp;&nbsp;2992  | &nbsp;&nbsp;330  | &nbsp;&nbsp;274884  | &nbsp;&nbsp;42310  | &nbsp;&nbsp;24236  | &nbsp;&nbsp;27714596  |
|  |  | &nbsp;&nbsp;429699348  | &nbsp;&nbsp;8025048  | &nbsp;&nbsp;1421880  | &nbsp;&nbsp;14492721  | &nbsp;&nbsp;773776  | &nbsp;&nbsp;10830453  | &nbsp;&nbsp;7164953  | &nbsp;&nbsp;15115809  | &nbsp;&nbsp;487523988  |
| &nbsp;&nbsp;&nbsp;Deposits and loans at FVTPL |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Banks |  | &nbsp;&nbsp;99159  | &nbsp;&nbsp;35450  | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;134609  |
| &nbsp;&nbsp;&nbsp;Corporations |  | &nbsp;&nbsp;1457224  | &nbsp;&nbsp;163511  | &nbsp;&nbsp;- | &nbsp;&nbsp;15402  | &nbsp;&nbsp;- | &nbsp;&nbsp;5193  | &nbsp;&nbsp;- | &nbsp;&nbsp;139457  | &nbsp;&nbsp;1780787  |
|  |  | &nbsp;&nbsp;1556383  | &nbsp;&nbsp;198961  | &nbsp;&nbsp;- | &nbsp;&nbsp;15402  | &nbsp;&nbsp;- | &nbsp;&nbsp;5193  | &nbsp;&nbsp;- | &nbsp;&nbsp;139457  | &nbsp;&nbsp;1915396  |
| Securities at FVTPL |  | &nbsp;&nbsp;61955771  | &nbsp;&nbsp;3321700  | &nbsp;&nbsp;377462  | &nbsp;&nbsp;135194  | &nbsp;&nbsp;2564  | &nbsp;&nbsp;- | &nbsp;&nbsp;7144  | &nbsp;&nbsp;1334286  | &nbsp;&nbsp;67134121  |
| &nbsp;&nbsp;&nbsp;Derivative assets |  | &nbsp;&nbsp;8199726  | &nbsp;&nbsp;687950  | &nbsp;&nbsp;41218  | &nbsp;&nbsp;152555  | &nbsp;&nbsp;274786  | &nbsp;&nbsp;3201  | &nbsp;&nbsp;1613  | &nbsp;&nbsp;918208  | &nbsp;&nbsp;10279257  |
| &nbsp;&nbsp;&nbsp;Securities at FVOCI |  | &nbsp;&nbsp;81294290  | &nbsp;&nbsp;5367178  | &nbsp;&nbsp;441203  | &nbsp;&nbsp;564635  | &nbsp;&nbsp;35026  | &nbsp;&nbsp;50368  | &nbsp;&nbsp;708567  | &nbsp;&nbsp;3554943  | &nbsp;&nbsp;92016210  |
| &nbsp;&nbsp;&nbsp;Securities at amortized cost |  | &nbsp;&nbsp;31113242  | &nbsp;&nbsp;207817  | &nbsp;&nbsp;- | &nbsp;&nbsp;499988  | &nbsp;&nbsp;- | &nbsp;&nbsp;761386  | &nbsp;&nbsp;116944  | &nbsp;&nbsp;616622  | &nbsp;&nbsp;33315999  |
|  |  | &nbsp;&nbsp;613818760  | &nbsp;&nbsp;17808654  | &nbsp;&nbsp;2281763  | &nbsp;&nbsp;15860495  | &nbsp;&nbsp;1086152  | &nbsp;&nbsp;11650601  | &nbsp;&nbsp;7999221  | &nbsp;&nbsp;21679325  | &nbsp;&nbsp;692184971  |
| &nbsp;&nbsp;&nbsp;Off-balance sheet items |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Guarantees |  | &nbsp;&nbsp;20517889 | &nbsp;&nbsp;579426 | &nbsp;&nbsp;250938 | &nbsp;&nbsp;44186 | &nbsp;&nbsp;9663 | &nbsp;&nbsp;199535 | &nbsp;&nbsp;511891 | &nbsp;&nbsp;395667 | &nbsp;&nbsp;22509195 |
| &nbsp;&nbsp;&nbsp;&nbsp;Loan commitments and <br> other liabilities related to credit |  | &nbsp;&nbsp;206833657 | &nbsp;&nbsp;1873831 | &nbsp;&nbsp;290909 | &nbsp;&nbsp;352256 | &nbsp;&nbsp;87212 | &nbsp;&nbsp;2187736 | &nbsp;&nbsp;2158798 | &nbsp;&nbsp;5196395 | &nbsp;&nbsp;218980794 |
|  | W | &nbsp;&nbsp;227351546 | &nbsp;&nbsp;2453257 | &nbsp;&nbsp;541847 | &nbsp;&nbsp;396442 | &nbsp;&nbsp;96875 | &nbsp;&nbsp;2387271 | &nbsp;&nbsp;2670689 | &nbsp;&nbsp;5592062 | &nbsp;&nbsp;241489989 |

---

(\*) The amounts by geographic location are presented as the net carrying amount after deducting allowances for loan losses.

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**5. <u>Financial risk management (continued)</u>**

**(b) Credit risk (continued)**

*ix) Concentration by industry sector*

An analysis of concentration by industry sector of financial instrument, net of allowance, as of and December 31, 2025 and 2024 is as follows:

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | &nbsp;&nbsp;&nbsp;**December 31, 2025** | &nbsp;&nbsp;&nbsp;**December 31, 2025** | &nbsp;&nbsp;&nbsp;**December 31, 2025** | &nbsp;&nbsp;&nbsp;**December 31, 2025** | &nbsp;&nbsp;&nbsp;**December 31, 2025** | &nbsp;&nbsp;&nbsp;**December 31, 2025** | &nbsp;&nbsp;&nbsp;**December 31, 2025** | &nbsp;&nbsp;&nbsp;**December 31, 2025** | &nbsp;&nbsp;&nbsp;**December 31, 2025** |
| &nbsp;&nbsp;&nbsp;&nbsp;**Classification (\*)** |  | **Finance and insurance** | &nbsp;&nbsp;&nbsp;**Manu-**<br>**facturing** | &nbsp;&nbsp;&nbsp;**Retail and wholesale** | **Real estate and business** | **Construction service** | &nbsp;&nbsp;&nbsp;**Lodging and Restaurant** | &nbsp;&nbsp;&nbsp;**Other** | **Retail**<br>**customers** | &nbsp;&nbsp;&nbsp;**Total** |
| &nbsp;&nbsp;&nbsp;Due from banks and loans at amortized cost: |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Banks | &nbsp;&nbsp;&nbsp;&nbsp;W | &nbsp;&nbsp;12359288  | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;299421  | &nbsp;&nbsp;- | &nbsp;&nbsp;12658709  |
| &nbsp;&nbsp;&nbsp; Retail |  | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;208308298  | &nbsp;&nbsp;208308298 |
| &nbsp;&nbsp;&nbsp; Government/Public sector/Central bank |  | &nbsp;&nbsp;26140603  | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;276729  | &nbsp;&nbsp;- | &nbsp;&nbsp;26417332  |
| &nbsp;&nbsp;&nbsp; Corporations |  | &nbsp;&nbsp;22523203  | &nbsp;&nbsp;63353165  | &nbsp;&nbsp;23759226  | &nbsp;&nbsp;47411346  | &nbsp;&nbsp;5764311  | &nbsp;&nbsp;7205522  | &nbsp;&nbsp;56537352  | &nbsp;&nbsp;- | &nbsp;&nbsp;226554125  |
| &nbsp;&nbsp;&nbsp; Card receivable |  | &nbsp;&nbsp;78300  | &nbsp;&nbsp;330944  | &nbsp;&nbsp;274289  | &nbsp;&nbsp;75757  | &nbsp;&nbsp;48900  | &nbsp;&nbsp;28196  | &nbsp;&nbsp;1329882  | &nbsp;&nbsp;25528775  | &nbsp;&nbsp;27695043  |
|  |  | &nbsp;&nbsp;61101394  | &nbsp;&nbsp;63684109  | &nbsp;&nbsp;24033515  | &nbsp;&nbsp;47487103  | &nbsp;&nbsp;5813211  | &nbsp;&nbsp;7233718  | &nbsp;&nbsp;58443384  | &nbsp;&nbsp;233837073  | &nbsp;&nbsp;501633507  |
| &nbsp;&nbsp;&nbsp;Due from banks and loans at FVTPL |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Banks |  | &nbsp;&nbsp;40862  | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;99327  | &nbsp;&nbsp;- | &nbsp;&nbsp;29783  | &nbsp;&nbsp;- | &nbsp;&nbsp;169972  |
| &nbsp;&nbsp;&nbsp; Corporations |  | &nbsp;&nbsp;575478  | &nbsp;&nbsp;399668  | &nbsp;&nbsp;3004  | &nbsp;&nbsp;156286  | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;151708  | &nbsp;&nbsp;- | &nbsp;&nbsp;1286144  |
|  |  | &nbsp;&nbsp;616340  | &nbsp;&nbsp;399668  | &nbsp;&nbsp;3004  | &nbsp;&nbsp;156286  | &nbsp;&nbsp;99327  | &nbsp;&nbsp;- | &nbsp;&nbsp;181491  | &nbsp;&nbsp;- | &nbsp;&nbsp;1456116  |
| &nbsp;&nbsp;&nbsp;Securities at FVTPL |  | &nbsp;&nbsp;35054770  | &nbsp;&nbsp;3090284  | &nbsp;&nbsp;1399374  | &nbsp;&nbsp;3087667  | &nbsp;&nbsp;242695  | &nbsp;&nbsp;29279  | &nbsp;&nbsp;28823791  | &nbsp;&nbsp;- | &nbsp;&nbsp;71727860  |
| &nbsp;&nbsp;&nbsp;Derivative assets |  | &nbsp;&nbsp;6068491  | &nbsp;&nbsp;829304  | &nbsp;&nbsp;13573  | &nbsp;&nbsp;19948  | &nbsp;&nbsp;2272  | &nbsp;&nbsp;329  | &nbsp;&nbsp;219516  | &nbsp;&nbsp;517  | &nbsp;&nbsp;7153950  |
| &nbsp;&nbsp;&nbsp;Securities at FVOCI |  | &nbsp;&nbsp;45699181  | &nbsp;&nbsp;2242382  | &nbsp;&nbsp;465133  | &nbsp;&nbsp;1733913  | &nbsp;&nbsp;749831  | &nbsp;&nbsp;22340  | &nbsp;&nbsp;50370126  | &nbsp;&nbsp;- | &nbsp;&nbsp;101282906  |
| &nbsp;&nbsp;&nbsp;Securities at amortized cost |  | &nbsp;&nbsp;7108253  | &nbsp;&nbsp;9985  | &nbsp;&nbsp;- | &nbsp;&nbsp;843938  | &nbsp;&nbsp;280851  | &nbsp;&nbsp;- | &nbsp;&nbsp;23701341  | &nbsp;&nbsp;- | &nbsp;&nbsp;31944368  |
|  |  | &nbsp;&nbsp;155648429  | &nbsp;&nbsp;70255732  | &nbsp;&nbsp;25914599  | &nbsp;&nbsp;53328855  | &nbsp;&nbsp;7188187  | &nbsp;&nbsp;7285666  | &nbsp;&nbsp;161739649  | &nbsp;&nbsp;233837590  | &nbsp;&nbsp;715198707  |
| &nbsp;&nbsp;&nbsp;Off-balance sheet items |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Guarantees |  | &nbsp;&nbsp;5659966  | &nbsp;&nbsp;12554311  | &nbsp;&nbsp;3633251  | &nbsp;&nbsp;290565  | &nbsp;&nbsp;214178  | &nbsp;&nbsp;60372  | &nbsp;&nbsp;3808447  | &nbsp;&nbsp;878  | &nbsp;&nbsp;26221968  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loan commitments and other liabilities related to credit |  | &nbsp;&nbsp;18227705  | &nbsp;&nbsp;31211151  | &nbsp;&nbsp;10863979  | &nbsp;&nbsp;6914971  | &nbsp;&nbsp;2269120  | &nbsp;&nbsp;444003  | &nbsp;&nbsp;20103475  | &nbsp;&nbsp;130282649  | &nbsp;&nbsp;220317053  |
|  | W | &nbsp;&nbsp;23887671  | &nbsp;&nbsp;43765462  | &nbsp;&nbsp;14497230  | &nbsp;&nbsp;7205536  | &nbsp;&nbsp;2483298  | &nbsp;&nbsp;504375  | &nbsp;&nbsp;23911922  | &nbsp;&nbsp;130283527  | &nbsp;&nbsp;246539021  |

---

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**5. <u>Financial risk management (continued)</u>**

**(b) Credit risk (continued)**

*ix) Concentration by industry sector (continued)*

An analysis of concentration by industry sector of financial instrument, net of allowance, as of and December 31, 2025 and 2024 is as follows:

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | &nbsp;&nbsp;&nbsp;**December 31, 2024** | &nbsp;&nbsp;&nbsp;**December 31, 2024** | &nbsp;&nbsp;&nbsp;**December 31, 2024** | &nbsp;&nbsp;&nbsp;**December 31, 2024** | &nbsp;&nbsp;&nbsp;**December 31, 2024** | &nbsp;&nbsp;&nbsp;**December 31, 2024** | &nbsp;&nbsp;&nbsp;**December 31, 2024** | &nbsp;&nbsp;&nbsp;**December 31, 2024** | &nbsp;&nbsp;&nbsp;**December 31, 2024** |
| &nbsp;&nbsp;&nbsp;&nbsp;**Classification (\*)** |  | **Finance and insurance** | &nbsp;&nbsp;&nbsp;**Manu-**<br>**facturing** | &nbsp;&nbsp;&nbsp;**Retail and wholesale** | **Real estate and business** | **Construction service** | &nbsp;&nbsp;&nbsp;**Lodging and Restaurant** | &nbsp;&nbsp;&nbsp;**Other** | **Retail**<br>**customers** | &nbsp;&nbsp;&nbsp;**Total** |
| &nbsp;&nbsp;&nbsp;Due from banks and loans at amortized cost: |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Banks | &nbsp;&nbsp;&nbsp;&nbsp;W | &nbsp;&nbsp;13495577 | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;562474 | &nbsp;&nbsp;- | &nbsp;&nbsp;14058051 |
| &nbsp;&nbsp;&nbsp; Retail |  | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;199809576 | &nbsp;&nbsp;199809576 |
| &nbsp;&nbsp;&nbsp; Government/Public sector/Central bank |  | &nbsp;&nbsp;27042097 | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;186211 | &nbsp;&nbsp;- | &nbsp;&nbsp;27228308 |
| &nbsp;&nbsp;&nbsp; Corporations |  | &nbsp;&nbsp;22485184  | &nbsp;&nbsp;62200259  | &nbsp;&nbsp;23447863  | &nbsp;&nbsp;47109684  | &nbsp;&nbsp;5409739  | &nbsp;&nbsp;6735852  | &nbsp;&nbsp;51324876  | &nbsp;&nbsp;- | &nbsp;&nbsp;218713457  |
| &nbsp;&nbsp;&nbsp; Card receivable |  | &nbsp;&nbsp;81613  | &nbsp;&nbsp;323992  | &nbsp;&nbsp;288452  | &nbsp;&nbsp;65256  | &nbsp;&nbsp;51107  | &nbsp;&nbsp;20277  | &nbsp;&nbsp;1189255  | &nbsp;&nbsp;25694644  | &nbsp;&nbsp;27714596  |
|  |  | &nbsp;&nbsp;63104471  | &nbsp;&nbsp;62524251  | &nbsp;&nbsp;23736315  | &nbsp;&nbsp;47174940  | &nbsp;&nbsp;5460846  | &nbsp;&nbsp;6756129  | &nbsp;&nbsp;53262816  | &nbsp;&nbsp;225504220  | &nbsp;&nbsp;487523988  |
| &nbsp;&nbsp;&nbsp;Due from banks and loans at FVTPL |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Banks |  | &nbsp;&nbsp;35450 | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;99159  | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;134609  |
| &nbsp;&nbsp;&nbsp; Corporations |  | &nbsp;&nbsp;859295  | &nbsp;&nbsp;391667  | &nbsp;&nbsp;301658  | &nbsp;&nbsp;149652  | &nbsp;&nbsp;10000  | &nbsp;&nbsp;- | &nbsp;&nbsp;68515  | &nbsp;&nbsp;- | &nbsp;&nbsp;1780787  |
|  |  | &nbsp;&nbsp;894745  | &nbsp;&nbsp;391667  | &nbsp;&nbsp;301658  | &nbsp;&nbsp;149652  | &nbsp;&nbsp;109159  | &nbsp;&nbsp;- | &nbsp;&nbsp;68515  | &nbsp;&nbsp;- | &nbsp;&nbsp;1915396  |
| &nbsp;&nbsp;&nbsp;Securities at FVTPL |  | &nbsp;&nbsp;34194979  | &nbsp;&nbsp;3634273  | &nbsp;&nbsp;1286997  | &nbsp;&nbsp;2149229  | &nbsp;&nbsp;304020  | &nbsp;&nbsp;136364  | &nbsp;&nbsp;25428259  | &nbsp;&nbsp;- | &nbsp;&nbsp;67134121  |
| &nbsp;&nbsp;&nbsp;Derivative assets |  | &nbsp;&nbsp;8305868  | &nbsp;&nbsp;1263951  | &nbsp;&nbsp;26101  | &nbsp;&nbsp;39698  | &nbsp;&nbsp;6003  | &nbsp;&nbsp;1616 | &nbsp;&nbsp;634051 | &nbsp;&nbsp;1969 | &nbsp;&nbsp;10279257 |
| &nbsp;&nbsp;&nbsp;Securities at FVOCI |  | &nbsp;&nbsp;35854914  | &nbsp;&nbsp;2636678  | &nbsp;&nbsp;712936  | &nbsp;&nbsp;1790042  | &nbsp;&nbsp;1056603  | &nbsp;&nbsp;12160  | &nbsp;&nbsp;49952877  | &nbsp;&nbsp;- | &nbsp;&nbsp;92016210  |
| &nbsp;&nbsp;&nbsp;Securities at amortized cost |  | &nbsp;&nbsp;9761249  | &nbsp;&nbsp;19984  | &nbsp;&nbsp;- | &nbsp;&nbsp;539416  | &nbsp;&nbsp;260379  | &nbsp;&nbsp;- | &nbsp;&nbsp;22734971 | &nbsp;&nbsp;- | &nbsp;&nbsp;33315999 |
|  |  | &nbsp;&nbsp;152116226  | &nbsp;&nbsp;70470804  | &nbsp;&nbsp;26064007  | &nbsp;&nbsp;51842977  | &nbsp;&nbsp;7197010  | &nbsp;&nbsp;6906269 | &nbsp;&nbsp;152081489 | &nbsp;&nbsp;225506189 | &nbsp;&nbsp;692184971 |
| &nbsp;&nbsp;&nbsp;Off-balance sheet items |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Guarantees |  | &nbsp;&nbsp;3733957 | &nbsp;&nbsp;11712348 | &nbsp;&nbsp;3548909 | &nbsp;&nbsp;92172 | &nbsp;&nbsp;179255 | &nbsp;&nbsp;115827 | &nbsp;&nbsp;3113748 | &nbsp;&nbsp;12979 | &nbsp;&nbsp;22509195 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loan commitments and other liabilities related to credit |  | &nbsp;&nbsp;18218204 | &nbsp;&nbsp;34199306 | &nbsp;&nbsp;10324128 | &nbsp;&nbsp;4325044 | &nbsp;&nbsp;2408759 | &nbsp;&nbsp;531832 | &nbsp;&nbsp;20644317 | &nbsp;&nbsp;128329204 | &nbsp;&nbsp;218980794 |
|  | W | &nbsp;&nbsp;21952161 | &nbsp;&nbsp;45911654 | &nbsp;&nbsp;13873037 | &nbsp;&nbsp;4417216 | &nbsp;&nbsp;2588014 | &nbsp;&nbsp;647659 | &nbsp;&nbsp;23758065 | &nbsp;&nbsp;128342183 | &nbsp;&nbsp;241489989 |

---

(\*) The amounts by industry sector are presented as the net carrying amount after deducting allowances for loan losses.

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**5. <u>Financial risk management (continued)</u>**

**(c) Market risk**

*i) Market risk management from trading positions*

*i-1) Concept of Market risk*

Market risk is defined as the risk of loss of trading account position of financial institutions due to changes on market price, such as interest rates, exchange rates and stock prices, etc. and is divided into general market risks and individual risks. A general market risk refers to a loss from price variability caused by events affecting the market as a whole, such as interest rates, exchange rates and stock prices; and an individual risk refers to a loss from price variability related to individual events of securities issuer, such as bonds and stocks. Structural foreign exchange positions refer to foreign exchange positions that, with the approval of the Governor of the Financial Supervisory Service, are excluded from the calculation of market risk regulatory capital, relating to amounts invested in foreign currencies such as capital contributions to overseas branches and Capital A (Gap-gi-geum).

*i-2) Market Risk Management Method*

The basic principle of market risk management in the trading sector is to maintain the maximum possible loss due to market risk within a certain level. To this end, the Group sets and operates VaR limits, investment limits, position limits, sensitivity limits, and loss limits from the portfolio to individual desks. These limits are managed daily by the department in charge of risk management, independent from the operating department.

Trading positions refer to all transactions for holding purposes such as short-term resale, profit seeking through short-term price fluctuations, risk-free arbitrage, and risk hedging. Trading positions refer to securities, foreign exchange positions, and derivative financial instruments held for the purpose of obtaining short-term trading gains. As a method of measuring market risk, VaR (Value at Risk) is typical, and it is a statistical measurement of the potential maximum loss that can occur due to changes in market conditions. VaR calculates the standardized approach market risk using the Group Market Risk Measurement System, and Shinhan Bank calculates the standardized approach market risk using its own model market risk calculation system. The Group and Shinhan Bank exclude structural foreign exchange positions, approved by the Governor of the Financial Supervisory Service, from the calculation of market risk under the standardized approach. Shinhan Securities Co., Ltd. uses its own market risk calculation system to calculate historical simulation VaR and the Group market risk system to calculate standardized approach market risk.

Stress tests are conducted to supplement risk measurement by statistical methods and to manage losses that may arise from rapid changes in the economic environment.

Shinhan Bank measures the risk of trading account products by applying market risk standardized approach. The trading account calculates market risk if it is for holding purposes such as short-term resale, profit seeking through short-term price fluctuations, risk-free arbitrage, and risk hedging. The standardized approach is a risk calculation methodology proposed by the Basel Committee on Banking Supervision (BCBS) of the Bank for International Settlements (BIS). In Korea, the Basel III standards for market risk have been incorporated into the Detailed Regulations on Banking Supervision since 2023, and the Group complies with these regulations. Under the Basel III standardized approach, market risk is calculated by aggregating sensitivity risk, default risk, and residual risk. Sensitivity risk measures coverage of general interest rates, credit spreads, stocks, commodity, delta and vega of foreign exchange, and curvature. Delta refers to the change in product value due to changes in the price of the underlying asset, and vega refers to the change in product value due to changes in the volatility of the underlying asset. Curvature is defined as a loss that exceeds the delta risk in the event of an upward or downward shock to the underlying asset. Sensitivity risk is designed to measure both linear and non-linear risks of factors affecting value fluctuations regardless of the characteristics of the product. Default risk measures the discrete default risk of the underlying asset that cannot be captured in sensitivity risk. Complete offsetting between purchase and sale exposures of the same borrower is possible. Residual risk is a concept that calculates additional risk because sensitivity risk and default risk are not accurately measured when there is a special profit/loss structure or the underlying asset is special.

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**5. <u>Financial risk management (continued)</u>**

**(c) Market risk (continued)**

*i) Market risk management from trading positions (continued)*

*i-2) Market Risk Management Method (continued)*

Trading position data is automatically interfaced into management system, and the system conducts VaR measurement and manages the limit. In addition, Shinhan Bank sets loss limit, sensitivity limit, investment limit, stress limit, etc. for Trading Department and desks, and monitors daily.

Shinhan Securities Co., Ltd. measures daily market risk by applying historical simulation VaR method of 99.9% confidence level-based VaR. It also measures market risk standardized approach to ensure consistent market risk management at the Group level. Historical simulation VaR method does not require assumption on a particular distribution since the method derives scenarios directly from historical market data, and measures non-linear products, such as options, in details. In addition to the VaR limit, Shinhan Securities Co., Ltd. sets and manages issuance and transaction limit, and stop-loss limit for each department.

The Group's market risk regulatory capital for trading positions under the Basel III revised standardized approach as of December 31, 2025 and 2024 is as follows:

---

| | | | |
|:---|:---|:---|:---|
|  |  | **December 31, 2025** | **December 31, 2024** |
| &nbsp;&nbsp;&nbsp;&nbsp;**Sensitivity risk** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;GIRR (\*1) | &nbsp;&nbsp;W | 219512  | 257705 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;CSR-Non-Securitized (\*2) |  | 465046  | 565017 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;CSR-Securitized (Non-CTP) |  | 56804  | 91048 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;CSR-Non-Securitized (CTP) |  | 141  | 508 |
| &nbsp;&nbsp;&nbsp;&nbsp;Stock |  | 92207  | 210850 |
| &nbsp;&nbsp;&nbsp;&nbsp;Foreign (\*3) |  | 435255  | 389673 |
| &nbsp;&nbsp;&nbsp;&nbsp;Commodity |  | 4293  | 2829 |
|  | &nbsp;&nbsp;W | 1273258  | 1517630 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Default risk** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Non-Securitized | &nbsp;&nbsp;W | 186037  | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Securitized (Excluding CTP) |  | 103363  | 121146 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Securitized (CTP) |  | 251  | 596 |
|  | &nbsp;&nbsp;W | 289651  | 121742 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Residual risk** |  | 8508  | 9547 |
|  | &nbsp;&nbsp;W | 1571417  | 1648919 |

---

(\*1) GIRR (General Interest Rate Risk): General interest rate risk, a concept that measures the risk of loss due to changes in the risk-free interest rate. In general, if the maturity is long and the value changes fluctuates a lot due to interest rate changes, the risk value is calculated to be large.

(\*2) CSR (Credit Spread Risk): Credit spread risk, a concept that measures the risk of value fluctuations as credit spreads fluctuate independently of the risk-free interest rate for products with inherent credit risk.

(\*3) Calculated by excluding structural foreign exchange positions approved by the Governor of the Financial Supervisory Service since the period ended December 31, 2024.

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**5. <u>Financial risk management (continued)</u>**

**(c) Market risk (continued)**

*i) Market risk management from trading positions (continued)*

*i-3) Shinhan Bank*

Shinhan Bank's market risk regulatory capital for trading positions under the Basel III revised standardized approach

as of December 31, 2025 and 2024 is as follows:

---

| | | | |
|:---|:---|:---|:---|
|  |  | **December 31, 2025** | **December 31, 2024** |
| &nbsp;&nbsp;&nbsp;&nbsp;**Sensitivity risk** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;GIRR (\*1) | W | 126382  | 116501 |
| &nbsp;&nbsp;&nbsp;&nbsp;CSR-Non-Securitized (\*2) |  | 148185  | 129603 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;CSR-Securitized (Non-CTP) (\*3) |  | 25290  | 27930 |
| &nbsp;&nbsp;&nbsp;&nbsp;Stock |  | 25676  | 28582 |
| &nbsp;&nbsp;&nbsp;&nbsp;Foreign (\*4) |  | 454808 | 368999 |
| &nbsp;&nbsp;&nbsp;&nbsp;Commodity |  | 287  | 199 |
|  | W | 780628 | 671814 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Default risk** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Non-Securitized | W | 111847  | 98699 |
| &nbsp;&nbsp;&nbsp;&nbsp;Securitized (Excluding CTP) |  | 58280  | 60866 |
|  | W | 170127  | 159565 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Residual risk** |  | 4576  | 2984 |
|  | W | 955331 | 834363 |

---

(\*1) GIRR: General Interest Rate Risk

(\*2) CSR: Credit Spread Risk

(\*3) CTP: Correlation Trading Portfolio

(\*4) Calculated by excluding structural foreign exchange positions approved by the Governor of the Financial Supervisory Service since the period ended December 31, 2024.

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**5. <u>Financial risk management (continued)</u>**

**(c) Market risk (continued)**

*i) Market risk management from trading positions (continued)*

*i-4) Shinhan Card Co., Ltd.*

Shinhan Card Co., Ltd.'s market risk regulatory capital for trading positions as of December 31, 2025 and 2024 under the standardized approach prescribed by the Financial Supervisory Service is as follows:

---

| | | | |
|:---|:---|:---|:---|
|  |  | **December 31, 2025** | **December 31, 2024** |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest rate risk (\*) | &nbsp;&nbsp;W | 2,700 | 2,551 |

---

(\*) Foreign subsidiaries are excluded from the calculation.

*i-5) Shinhan Securities Co., Ltd.*

The VaR of Shinhan Securities Co., Ltd.'s trading positions as of December 31, 2025 and 2024 is as follows:

---

| | | | |
|:---|:---|:---|:---|
|  |  | **December 31, 2025** | **December 31, 2024** |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest rate risk | W | 14058  | 15662 |
| &nbsp;&nbsp;&nbsp;&nbsp;Stock price risk |  | 33180  | 14321 |
| &nbsp;&nbsp;&nbsp;&nbsp;Foreign exchange risk |  | 23847  | 30310 |
| &nbsp;&nbsp;&nbsp;&nbsp;Option volatility risk |  | 9381  | 42703 |
| &nbsp;&nbsp;&nbsp;&nbsp;Portfolio diversification effect |  | (36966) | (41549) |
|  | &nbsp;&nbsp;W | 43500  | 61447 |

---

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**5. <u>Financial risk management (continued)</u>**

**(c) Market risk (continued)**

*i) Market risk management from trading positions (continued)*

*i-6) Shinhan Life Insurance Co., Ltd.*

The VaR of Shinhan Life Insurance Co., Ltd.'s trading positions as of December 31, 2025 and 2024 is as follows:

---

| | | | |
|:---|:---|:---|:---|
|  |  | **December 31, 2025** | **December 31, 2024** |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest rate risk | W | 145  | 683 |
| &nbsp;&nbsp;&nbsp;&nbsp;Stock price risk |  | 17365  | 11523 |
| &nbsp;&nbsp;&nbsp;&nbsp;Foreign exchange risk |  | 69913  | 55467 |
| &nbsp;&nbsp;&nbsp;&nbsp;Option volatility risk |  | 128  | 559 |
|  | &nbsp;&nbsp;W | 87551  | 68232 |

---

(\*) The market risk exposure for performance dividend-type assets held is W 5,687,547 million and W 4,956,743 million as of December 31, 2025, and 2024 respectively, and the minimum guaranteed risk amount that could result in an impact on the Group calculated using the internal shock scenario method as of the end of the reporting period is W 264,326 million and W 280,577 million as of December 31, 2025 and 2024 respectively.

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**5. <u>Financial risk management (continued)</u>**

**(c) Market risk (continued)**

*ii) Interest rate risk management from non-trading positions*

*ii-1) Principle*

Interest rate risk refers to the possibility of a decrease in net interest income or in net asset value that occurs when interest rates fluctuate unfavorably from the Group's financial position. The Group manages changes in net interest income or net asset value that occur due to changes in interest rates by early predicting the factors of interest rate risk fluctuation related to the Group's net interest income and net asset value through the interest rate risk management.

*ii-2) Managements* 

The Group's major financial subsidiaries manage interest rate risks independently by the risk management organization and the treasury department, and have internal regulations on interest rate risk management strategies, procedures, organization, measurement, and major assumptions.

One of the key indicators of managing interest rate risk is the Earnings at Risk (EaR) from an earning perspective and the Value at Risk (VaR) from an economic value perspective. Interest rate VaR represents the maximum anticipated loss in a net present value calculation, whereas interest rate EaR represents the maximum anticipated loss in a net interest income calculation for the immediately following one-year period, in each case, as a result of negative movements in interest rates.

Each subsidiary's interest rate risk measurement method varies depending on industry-specific regulations. However, interest rate VaR and interest rate EaR are measured using internal methodologies or IRRBB (Interest Rate Risk in the Banking Book). Interest rate risk limits are set based on interest rate VaR and monitored accordingly. In accordance with the amendments to the Detailed Enforcement Rules of the Financial Holding Companies Supervisory Regulations, the Group measures its interest rate risk using the standardized approach of IRRBB under Basel III, which measures interest rate risk more precisely than the existing BIS standard framework by segmenting interest rate maturities, reflecting customer behavior models, and diversifying interest rate shocks. The interest rate VaR scenario based IRRBB measures ① parallel up shock ② parallel down shock ③ steepener shock ④ flattener shock ⑤ short rate up shock ⑥ short rate down shock. By the parallel up shock and parallel down shock, the interest rate EaR scenario measures the scenario value with the largest loss as interest rate risk. Under the existing BIS standard framework, ± 200bp parallel shock scenario is applied to all currency. However, as the shock width is set differently by currency and period, interest rate risk is measured significantly by the IRRBB (e.g. (KRW) Parallel ± 225bp, Short Term ± 350bp, Long Term ± 225bp, (USD) Parallel ± 200bp, Short Term ± 300bp, Long Term ± 225bp). In the IRRBB method, the existing interest rate VaR and the interest rate EaR are expressed as △ EVE (Economic Value of Equity) and △ NII (Net Interest Income), respectively.

Since impacts of each subsidiary on changes of interest rates are differentiated by portfolios, the Group is preparing to respond proactively while monitoring the financial market and regulatory environment, and making efforts to hedge or reduce interest rate risk. In addition, the subsidiaries conduct the crisis analysis on changes in market interest rates and report it to management and the Group.

In particular, through its ALM (Asset and Liability Management) system, Shinhan Bank measures and manages its interest rate risk based on various analytical measures such as interest rate gap, duration gap and NPV (Net Present Value) and NII (Net Interest Income) simulations, and monitors on a monthly basis its interest rate VaR limits, interest rate EaR (Earnings at Risk) limits and interest rate gap ratio limits.

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**5. <u>Financial risk management (continued)</u>**

**(c) Market risk (continued)**

*ii) Interest rate risk management from non-trading positions (continued):*

*ii-3) The details of interest rate VaR and EaR for major subsidiaries for as of December 31, 2025 and 2024 are as follows:*

① Shinhan Bank

---

| | | | |
|:---|:---|:---|:---|
|  |  | **December 31, 2025** | **December 31, 2024** |
| &nbsp;&nbsp;&nbsp;&nbsp;△EVE (\*1) | W | 1,399,226  | 1,508,514 |
| &nbsp;&nbsp;&nbsp;&nbsp;△NII (\*2) |  | 255,874  | 406,207 |

---

② Shinhan Card Co., Ltd.

---

| | | | |
|:---|:---|:---|:---|
|  |  | **December 31, 2025** | **December 31, 2024** |
| &nbsp;&nbsp;&nbsp;&nbsp;△EVE (\*1) | W | 824,951  | 990,898 |
| &nbsp;&nbsp;&nbsp;&nbsp;△NII (\*2) |  | 587,147  | 600,681 |

---

③ Shinhan Securities Co., Ltd.

---

| | | | |
|:---|:---|:---|:---|
|  |  | **December 31, 2025** | **December 31, 2024** |
| &nbsp;&nbsp;&nbsp;&nbsp;△EVE (\*1) | W | 202,411  | 252,625 |
| &nbsp;&nbsp;&nbsp;&nbsp;△NII (\*2) |  | 280,082  | 418,741 |

---

4Shinhan Life Insurance Co., Ltd.

---

| | | | |
|:---|:---|:---|:---|
|  |  | **December 31, 2025** | **December 31, 2024** |
| &nbsp;&nbsp;&nbsp;&nbsp;△EVE (\*1) | W | 2,847,851  | 3,848,473 |
| &nbsp;&nbsp;&nbsp;&nbsp;△NII (\*2) |  | 30,124  | 44,525 |

---

(\*1) △EVE is the change in economic value of equity capital that can arise from changes in interest rates that affect the present value of assets, liabilities and off-balance sheet items by using the Basel III standard based IRRBB method.

(\*2) △NII is the change in net interest income that can occur over the next year due to changes in interest rates by using the Basel III standard based IRRBB method.

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**5. <u>Financial risk management (continued)</u>**

**(c) Market risk (continued)**

*iii) Foreign exchange risk*

Exposure to foreign exchange risk can be defined as the difference (net position) between assets and liabilities presented in foreign currency, including derivative financial instruments linked to foreign exchange rate. Foreign exchange risk is a factor that causes market risk of the trading position and is managed by the Group under the market risk management system.

The management of Shinhan Bank's foreign exchange position is centralized at the S&T Center. The desks and dealers of this department manage the overall position of spot foreign exchange or foreign exchange derivatives within the established market risk and foreign exchange position limits. Shinhan Bank sets a limit for net open positions by currency and the limits for currencies other than the U.S. dollars (USD), Japanese yen (JPY), Euros (EUR) and Chinese yuan (CNY) are set in order to minimize exposures from the other foreign exchange trading.

Foreign currency denominated assets and liabilities as of December 31, 2025 and 2024 are as follows:

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** |
|  |  | &nbsp;&nbsp;**USD** | &nbsp;&nbsp;**JPY** | **EUR** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**CNY** | **Other** | **Total** |
| &nbsp;&nbsp;&nbsp;&nbsp;**Assets:** |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash and due from banks at amortized cost | &nbsp;&nbsp;W | &nbsp;&nbsp;14268193  | &nbsp;&nbsp;3024755  | &nbsp;&nbsp;193635  | &nbsp;&nbsp;615220  | &nbsp;&nbsp;5969361  | &nbsp;&nbsp;24071164  |
| &nbsp;&nbsp;&nbsp;&nbsp;Due from banks at FVTPL |  | &nbsp;&nbsp;40862  | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;40862  |
| &nbsp;&nbsp;&nbsp;&nbsp;Loans at FVTPL |  | &nbsp;&nbsp;108450  | &nbsp;&nbsp;- | &nbsp;&nbsp;9635  | &nbsp;&nbsp;- | &nbsp;&nbsp;4133  | &nbsp;&nbsp;122218  |
| &nbsp;&nbsp;&nbsp;&nbsp;Loan at amortized cost |  | &nbsp;&nbsp;25860570  | &nbsp;&nbsp;14457433  | &nbsp;&nbsp;2117346  | &nbsp;&nbsp;4891534  | &nbsp;&nbsp;16981548  | &nbsp;&nbsp;64308431  |
| &nbsp;&nbsp;&nbsp;&nbsp;Securities at FVTPL |  | &nbsp;&nbsp;8324763  | &nbsp;&nbsp;137035  | &nbsp;&nbsp;1012815  | &nbsp;&nbsp;2750  | &nbsp;&nbsp;1251785  | &nbsp;&nbsp;10729148  |
| &nbsp;&nbsp;&nbsp;&nbsp;Derivative assets |  | &nbsp;&nbsp;815479  | &nbsp;&nbsp;2217  | &nbsp;&nbsp;304637  | &nbsp;&nbsp;881  | &nbsp;&nbsp;84524  | &nbsp;&nbsp;1207738  |
| &nbsp;&nbsp;&nbsp;&nbsp;Securities at FVOCI |  | &nbsp;&nbsp;13004888  | &nbsp;&nbsp;312632  | &nbsp;&nbsp;944285  | &nbsp;&nbsp;743545  | &nbsp;&nbsp;3314109  | &nbsp;&nbsp;18319459  |
| &nbsp;&nbsp;&nbsp;&nbsp;Securities at amortized cost |  | &nbsp;&nbsp;368841  | &nbsp;&nbsp;432333  | &nbsp;&nbsp;- | &nbsp;&nbsp;96420  | &nbsp;&nbsp;1140009  | &nbsp;&nbsp;2037603  |
| &nbsp;&nbsp;&nbsp;&nbsp;Other financial assets |  | &nbsp;&nbsp;9806303  | &nbsp;&nbsp;2707262  | &nbsp;&nbsp;1785518  | &nbsp;&nbsp;201174  | &nbsp;&nbsp;1736885  | &nbsp;&nbsp;16237142  |
|  | &nbsp;&nbsp;W | &nbsp;&nbsp;72598349  | &nbsp;&nbsp;21073667  | &nbsp;&nbsp;6367871  | &nbsp;&nbsp;6551524  | &nbsp;&nbsp;30482354  | &nbsp;&nbsp;137073765  |
| &nbsp;&nbsp;&nbsp;&nbsp;**Liabilities:** |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Deposits | &nbsp;&nbsp;W | &nbsp;&nbsp;31663691  | &nbsp;&nbsp;18053711  | &nbsp;&nbsp;2208668  | &nbsp;&nbsp;4903374  | &nbsp;&nbsp;17057680  | &nbsp;&nbsp;73887124  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Financial liabilities at FVTPL |  | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;1522071  | &nbsp;&nbsp;1522071  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Derivative liabilities  |  | &nbsp;&nbsp;641622  | &nbsp;&nbsp;5000  | &nbsp;&nbsp;145204  | &nbsp;&nbsp;1077  | &nbsp;&nbsp;74334  | &nbsp;&nbsp;867237  |
| &nbsp;&nbsp;&nbsp;&nbsp;Borrowings |  | &nbsp;&nbsp;11990792  | &nbsp;&nbsp;1253386  | &nbsp;&nbsp;459326  | &nbsp;&nbsp;6388  | &nbsp;&nbsp;2240724  | &nbsp;&nbsp;15950616  |
| &nbsp;&nbsp;&nbsp;&nbsp;Debt securities issued |  | &nbsp;&nbsp;13715798  | &nbsp;&nbsp;426698  | &nbsp;&nbsp;1985414  | &nbsp;&nbsp;- | &nbsp;&nbsp;1983450  | &nbsp;&nbsp;18111360  |
| &nbsp;&nbsp;&nbsp;&nbsp;Financial liabilities designated at FVTPL |  | &nbsp;&nbsp;790960  | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;790960  |
| &nbsp;&nbsp;&nbsp;&nbsp;Other financial liabilities |  | &nbsp;&nbsp;11593718  | &nbsp;&nbsp;861743  | &nbsp;&nbsp;911334  | &nbsp;&nbsp;786180  | &nbsp;&nbsp;1805791  | &nbsp;&nbsp;15958766  |
|  | &nbsp;&nbsp;W | &nbsp;&nbsp;70396581  | &nbsp;&nbsp;20600538  | &nbsp;&nbsp;5709946  | &nbsp;&nbsp;5697019  | &nbsp;&nbsp;24684050  | &nbsp;&nbsp;127088134  |
| &nbsp;&nbsp;&nbsp;&nbsp;Net domestic and foreign currency exposure | &nbsp;&nbsp;W | &nbsp;&nbsp;2201768  | &nbsp;&nbsp;473129  | &nbsp;&nbsp;657925  | &nbsp;&nbsp;854505  | &nbsp;&nbsp;5798304  | &nbsp;&nbsp;9985631  |
| &nbsp;&nbsp;&nbsp;&nbsp;Off-balance derivative exposure |  | &nbsp;&nbsp;2736104  | &nbsp;&nbsp;425121  | &nbsp;&nbsp;275984  | &nbsp;&nbsp;(1783) | &nbsp;&nbsp;(2754376) | &nbsp;&nbsp;681050  |
| &nbsp;&nbsp;&nbsp;&nbsp;Net foreign currency exposure | &nbsp;&nbsp;W | &nbsp;&nbsp;4937872  | &nbsp;&nbsp;898250  | &nbsp;&nbsp;933909  | &nbsp;&nbsp;852722  | &nbsp;&nbsp;3043928  | &nbsp;&nbsp;10666681  |

---

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**5. <u>Financial risk management (continued)</u>**

**(c) Market risk (continued)**

*iii) Foreign exchange risk (continued)*

Foreign currency denominated assets and liabilities as of December 31, 2025 and 2024 are as follows (continued):

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
|  |  | &nbsp;&nbsp;**USD** | &nbsp;&nbsp;**JPY** | **EUR** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**CNY** | **Other** | **Total** |
| &nbsp;&nbsp;&nbsp;&nbsp;**Assets:** |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash and due from banks at amortized cost | &nbsp;&nbsp;W | &nbsp;&nbsp;12337661 | &nbsp;&nbsp;2952548 | &nbsp;&nbsp;263878 | &nbsp;&nbsp;731304 | &nbsp;&nbsp;5387372 | &nbsp;&nbsp;21672763 |
| &nbsp;&nbsp;&nbsp;&nbsp;Due from banks at FVTPL |  | &nbsp;&nbsp;35450  | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;35450  |
| &nbsp;&nbsp;&nbsp;&nbsp;Loans at FVTPL |  | &nbsp;&nbsp;275434  | &nbsp;&nbsp;- | &nbsp;&nbsp;28229  | &nbsp;&nbsp;- | &nbsp;&nbsp;19899  | &nbsp;&nbsp;323562  |
| &nbsp;&nbsp;&nbsp;&nbsp;Loan at amortized cost |  | &nbsp;&nbsp;25948190  | &nbsp;&nbsp;13073162  | &nbsp;&nbsp;1832150  | &nbsp;&nbsp;4873899  | &nbsp;&nbsp;15186486  | &nbsp;&nbsp;60913887  |
| &nbsp;&nbsp;&nbsp;&nbsp;Securities at FVTPL |  | &nbsp;&nbsp;6687351  | &nbsp;&nbsp;133864  | &nbsp;&nbsp;852382  | &nbsp;&nbsp;4124  | &nbsp;&nbsp;726565  | &nbsp;&nbsp;8404286  |
| &nbsp;&nbsp;&nbsp;&nbsp;Derivative assets |  | &nbsp;&nbsp;1568025  | &nbsp;&nbsp;4578  | &nbsp;&nbsp;232197  | &nbsp;&nbsp;1987  | &nbsp;&nbsp;98297  | &nbsp;&nbsp;1905084  |
| &nbsp;&nbsp;&nbsp;&nbsp;Securities at FVOCI |  | &nbsp;&nbsp;10334842  | &nbsp;&nbsp;171177  | &nbsp;&nbsp;521289  | &nbsp;&nbsp;681404  | &nbsp;&nbsp;2536312  | &nbsp;&nbsp;14245024  |
| &nbsp;&nbsp;&nbsp;&nbsp;Securities at amortized cost |  | &nbsp;&nbsp;340153  | &nbsp;&nbsp;500269  | &nbsp;&nbsp;- | &nbsp;&nbsp;117008  | &nbsp;&nbsp;1381765  | &nbsp;&nbsp;2339195  |
| &nbsp;&nbsp;&nbsp;&nbsp;Other financial assets |  | &nbsp;&nbsp;5471934  | &nbsp;&nbsp;1264209  | &nbsp;&nbsp;197766  | &nbsp;&nbsp;355004  | &nbsp;&nbsp;830886  | &nbsp;&nbsp;8119799  |
|  | &nbsp;&nbsp;W | &nbsp;&nbsp;62999040  | &nbsp;&nbsp;18099807  | &nbsp;&nbsp;3927891  | &nbsp;&nbsp;6764730  | &nbsp;&nbsp;26167582  | &nbsp;&nbsp;117959050  |
| &nbsp;&nbsp;&nbsp;&nbsp;**Liabilities:** |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Deposits | &nbsp;&nbsp;W | &nbsp;&nbsp;28517193 | &nbsp;&nbsp;15642126 | &nbsp;&nbsp;1194240 | &nbsp;&nbsp;5245526 | &nbsp;&nbsp;15132335 | &nbsp;&nbsp;65731420 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Financial liabilities at FVTPL |  | &nbsp;&nbsp;3117 | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;597058 | &nbsp;&nbsp;600175 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Derivative liabilities  |  | &nbsp;&nbsp;1513732  | &nbsp;&nbsp;5297  | &nbsp;&nbsp;50101  | &nbsp;&nbsp;1964  | &nbsp;&nbsp;55052  | &nbsp;&nbsp;1626146  |
| &nbsp;&nbsp;&nbsp;&nbsp;Borrowings |  | &nbsp;&nbsp;9498518  | &nbsp;&nbsp;1446603  | &nbsp;&nbsp;280140  | &nbsp;&nbsp;544  | &nbsp;&nbsp;1485415  | &nbsp;&nbsp;12711220  |
| &nbsp;&nbsp;&nbsp;&nbsp;Debt securities issued |  | &nbsp;&nbsp;15926430  | &nbsp;&nbsp;168566  | &nbsp;&nbsp;764365  | &nbsp;&nbsp;- | &nbsp;&nbsp;1865788  | &nbsp;&nbsp;18725149  |
| &nbsp;&nbsp;&nbsp;&nbsp;Financial liabilities designated at FVTPL |  | &nbsp;&nbsp;804324 | &nbsp;&nbsp;313 | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;804637 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other financial liabilities |  | &nbsp;&nbsp;6432533  | &nbsp;&nbsp;936178  | &nbsp;&nbsp;229063  | &nbsp;&nbsp;652514  | &nbsp;&nbsp;1061947  | &nbsp;&nbsp;9312235  |
|  | &nbsp;&nbsp;W | &nbsp;&nbsp;62695847  | &nbsp;&nbsp;18199083  | &nbsp;&nbsp;2517909  | &nbsp;&nbsp;5900548  | &nbsp;&nbsp;20197595  | &nbsp;&nbsp;109510982  |
| &nbsp;&nbsp;&nbsp;&nbsp;Net domestic and foreign currency exposure | &nbsp;&nbsp;W | &nbsp;&nbsp;303193 | &nbsp;&nbsp;(99276) | &nbsp;&nbsp;1409982 | &nbsp;&nbsp;864182 | &nbsp;&nbsp;5969987 | &nbsp;&nbsp;8448068 |
| &nbsp;&nbsp;&nbsp;&nbsp;Off-balance derivative exposure |  | &nbsp;&nbsp;2433296 | &nbsp;&nbsp;1085962 | &nbsp;&nbsp;(397997) | &nbsp;&nbsp;(379652) | &nbsp;&nbsp;(1555122) | &nbsp;&nbsp;1186487 |
| &nbsp;&nbsp;&nbsp;&nbsp;Net foreign currency exposure | &nbsp;&nbsp;W | &nbsp;&nbsp;2736489 | &nbsp;&nbsp;986686 | &nbsp;&nbsp;1011985 | &nbsp;&nbsp;484530 | &nbsp;&nbsp;4414865 | &nbsp;&nbsp;9634555 |

---

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**5. <u>Financial risk management (continued)</u>**

**(d) Liquidity risk**

Liquidity risk refers to the risk of unexpected losses (such as the disposal of assets at abnormal prices, high interest-rate financing, etc.) or insolvency due to inconsistency in funding periods between assets and liabilities or a sudden outflow of funds.

Each subsidiary seeks to minimize liquidity risk through early detection of risk factors related to the sourcing and managing of funding that may cause volatility in liquidity by ensuring that it maintains an appropriate level of liquidity through systematic management. At the Group level, the Group manages liquidity risk by conducting monthly stress tests that compare liquidity requirements under normal situations against those under three types of stress situations, namely, the inherent crisis, crisis in the external market and a combination of internal and external crisis. Therefore, the Group is monitoring for any anomalies in terms of liquidity in preparation for potential crisis situations during normal times.

In particular, after the bankruptcy of Silicon Valley Bank, the Group has been strengthening its capability to respond to liquidity crises by conducting crisis situation analysis applying bank run scenarios to the banks and savings bank subsidiaries. The Group has established and reviewed emergency funding plans, accordingly.

In addition, in order to pre-emptively and comprehensively manage liquidity risk, the Group measures and monitors 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 funding in sufficient amounts, at the optimal time at reasonable costs;

- Maintain risk at appropriate levels and pre-emptively manage them through a prescribed risk limit system and an early warning signal detection system;

- Secure stable sources of revenue and minimize actual losses by implementing an effective asset-liability management system based on diversified sources of funding with varying maturities;

- Monitor and manage daily and intra-daily liquidity positions and risk exposures for timely payment and settlement of financial obligations due under both normal and crisis situations;

- Conduct periodic contingency analysis to prepare for any potential liquidity crisis and establish and implement emergency plans in the event of a crisis; and

- Consider liquidity-related costs, benefits and risks in determining the pricing of the Group's products and services, employee performance evaluations and approval of launching of new products and services.

Shinhan Card Co., Ltd. sets and operates a level that can withstand a 3-month credit crunch for end-of-month liquidity. The Group defines and manages the level of 'cautious', 'alert', 'imminent crisis', and 'crisis' and risk for the real liquidity gap ratio, liquidity buffer ratio, and ratio of ABS (asset backed securities) to borrowings which are major indicators related to liquidity risk. A contingency plan has been established to prepare for a crisis.

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**5. <u>Financial risk management (continued)</u>**

**(d) Liquidity risk (continued)**

The details of the composition of non-derivative financial instruments and derivative financial instruments by remaining period are as of December 31, 2025 and 2024 are as follows:

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | **December 31, 2025 (\*1)** | **December 31, 2025 (\*1)** | **December 31, 2025 (\*1)** | **December 31, 2025 (\*1)** | **December 31, 2025 (\*1)** | **December 31, 2025 (\*1)** | **December 31, 2025 (\*1)** |
|  |  | **Less than** <br>**1 month** | **1~3**<br>**months** | **3~6** <br>**months** | **6 months**<br>**~ 1 year** | **1~5** <br>**years** | **More than** <br>**5 years** | **Total** |
| &nbsp;&nbsp;&nbsp;**Non-derivative financial instruments:** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Assets: |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Cash and due from banks at amortized cost | W | 37051022  | 746364  | 68711  | 19990  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;264095  | 1842716  | 39992898  |
| &nbsp;&nbsp;&nbsp;Due from banks at FVTPL |  | - | - | - | - | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- | 40862  | 40862  |
| &nbsp;&nbsp;&nbsp;Loans at FVTPL |  | 84231 | 419312  | 83  | 81094  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;708906  | 126359 | 1419985  |
| &nbsp;&nbsp;&nbsp;Loans at amortized cost |  | 37915506  | 55304875  | 66984277  | 103607758  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;149981848  | 135798359  | 549592623  |
| &nbsp;&nbsp;&nbsp;Securities at FVTPL |  | 51192910  | 1363382  | 748568  | 1297385  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8919975  | 13075043 | 76597263 |
| &nbsp;&nbsp;&nbsp;Securities at FVOCI |  | 54888016  | 1564045  | 551147  | 1592027  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13096314  | 31737573  | 103429122  |
| &nbsp;&nbsp;&nbsp;Securities at amortized cost |  | 660221  | 3086876  | 1288192  | 2902604  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;21330649  | 5785213  | 35053755  |
| &nbsp;&nbsp;&nbsp;Other financial assets |  | 38973471  | 96390  | 68338  | 355372  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;510306  | 2044911  | 42048788 |
|  | W | 220765377 | 62581244  | 69709316  | 109856230  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;194812093  | 190451036 | 848175296 |
| &nbsp;&nbsp;&nbsp;Liabilities: |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Deposits (\*2) | W | 231520722  | 54103105  | 54526232  | 84041299  | 30677571  | 2274736  | 457143665  |
| &nbsp;&nbsp;&nbsp;&nbsp;Financial liabilities at FVTPL |  | 2212215  | - | - | - | - | 100272  | 2312487  |
| &nbsp;&nbsp;&nbsp;&nbsp;Borrowings |  | 16797623  | 6963957  | 6221726  | 8478193  | 11924157  | 6074035  | 56459691  |
| &nbsp;&nbsp;&nbsp;&nbsp;Debt securities issued |  | 6230564  | 8486174  | 9202855  | 15052890  | 56411740  | 3889537  | 99273760  |
| &nbsp;&nbsp;&nbsp;&nbsp;Financial liabilities designated at FVTPL |  | 399298  | 977019  | 854498  | 1180049  | 1423212  | 1586327  | 6420403  |
| &nbsp;&nbsp;&nbsp;&nbsp;Investment contract liabilities |  | 189704  | 10554  | 91041  | 159182  | 1085912  | - | 1536393  |
| &nbsp;&nbsp;&nbsp;&nbsp;Other financial liabilities |  | 51214836  | 162838  | 74360  | 602583  | 1318935  | 225282  | 53598834  |
|  | W | 308564962  | 70703647  | 70970712  | 109514196  | 102841527  | 14150189  | 676745233  |
| Off-balance sheet items (\*3): |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Guarantee contracts | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;W | 26221968  | - | - | - | - | - | 26221968  |
| &nbsp;&nbsp;&nbsp;&nbsp;Other liabilities related to loan commitments |  | 220317053  | - | - | - | - | - | 220317053  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;W | 246539021  | - | - | - | - | - | 246539021  |
| &nbsp;&nbsp;Derivatives | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;W | 771588  | (810792) | (29804) | (93500) | (2117259) | (76279) | (2356046) |

---

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**5. <u>Financial risk management (continued)</u>**

**(d) Liquidity risk (continued)**

The details of the composition of non-derivative financial instruments and derivative financial instruments by remaining period are as of December 31, 2025 and 2024 are as follows (continued):

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | **December 31, 2024 (\*1)** | **December 31, 2024 (\*1)** | **December 31, 2024 (\*1)** | **December 31, 2024 (\*1)** | **December 31, 2024 (\*1)** | **December 31, 2024 (\*1)** | **December 31, 2024 (\*1)** |
|  |  | **Less than** <br>**1 month** | **1~3**<br>**months** | **3~6** <br>**months** | **6 months**<br>**~ 1 year** | **1~5** <br>**years** | **More than** <br>**5 years** | **Total** |
| &nbsp;&nbsp;&nbsp;**Non-derivative financial instruments:** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Assets: |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Cash and due from banks at amortized cost | W | 36069005 | 678029 | 293900 | 290070 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;295757 | 3107597 | 40734358 |
| &nbsp;&nbsp;&nbsp;Due from banks at FVTPL |  | - | - | - | - | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- | 35450  | 35450  |
| &nbsp;&nbsp;&nbsp;Loans at FVTPL |  | 275263  | 531544  | 136762  | 95  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;660244  | 276599  | 1880507  |
| &nbsp;&nbsp;&nbsp;Loans at amortized cost |  | 37868875  | 54775441  | 69211593  | 99131674  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;145027757  | 123300327  | 529315667  |
| &nbsp;&nbsp;&nbsp;Securities at FVTPL |  | 41515377 | 1066771 | 473077 | 894621 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8851339 | 20043058 | 72844243 |
| &nbsp;&nbsp;&nbsp;Securities at FVOCI |  | 45714502 | 997618 | 825089 | 2680515 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10809850 | 32861952 | 93889526 |
| &nbsp;&nbsp;&nbsp;Securities at amortized cost |  | 878077  | 3117274  | 3152468  | 3236438  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20604654  | 5540522  | 36529433  |
| &nbsp;&nbsp;&nbsp;Other financial assets |  | 18550324  | 58298  | 59159  | 631667  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;599959  | 1975249  | 21874656  |
|  | W | 180871423  | 61224975  | 74152048  | 106865080  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;186849560  | 187140754  | 797103840  |
| &nbsp;&nbsp;&nbsp;Liabilities: |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Deposits (\*2) | W | 217170450 | 49309656 | 56540309 | 77227315 | 30221968 | 1261816 | 431731514 |
| &nbsp;&nbsp;&nbsp;&nbsp;Financial liabilities at FVTPL |  | 954899  | - | - | - | - | - | 954899  |
| &nbsp;&nbsp;&nbsp;&nbsp;Borrowings |  | 12862532  | 4757090  | 6901957  | 9990468  | 11464431  | 4896426  | 50872904  |
| &nbsp;&nbsp;&nbsp;&nbsp;Debt securities issued |  | 4859511  | 8927081  | 9122810  | 17273392  | 56429636  | 4046575  | 100659005  |
| &nbsp;&nbsp;&nbsp;&nbsp;Financial liabilities designated at FVTPL |  | 439367 | 861277 | 991871 | 1963789 | 2473275 | 1513662 | 8243241 |
| &nbsp;&nbsp;&nbsp;&nbsp;Investment contract liabilities |  | 106106  | 105788  | 248954  | 375300  | 328874  | - | 1165022  |
| &nbsp;&nbsp;&nbsp;&nbsp;Other financial liabilities |  | 32314670  | 174388  | 257115  | 587834  | 1351145  | 140254  | 34825406  |
|  | W | 268707535  | 64135280  | 74063016  | 107418098  | 102269329  | 11858733  | 628451991  |
| Off-balance sheet items (\*3): |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Guarantee contracts | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;W | 22509195 | - | - | - | - | - | 22509195 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other liabilities related to loan commitments |  | 218980794 | - | - | - | - | - | 218980794 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;W | 241489989 | - | - | - | - | - | 241489989 |
| &nbsp;&nbsp;Derivatives | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;W | 453751  | (12670) | (68634) | 6511  | (1847862) | (165170) | (1634074) |

---

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**5. <u>Financial risk management (continued)</u>**

**(d) Liquidity risk (continued)**

The details of the composition of non-derivative financial instruments and derivative financial instruments by remaining period are as of December 31, 2025 and 2024 are as follows (continued):

(\*1) These amounts include cash flows of principal and interest on financial assets and financial liabilities.

(\*2) Demand deposits amounting to W 172,840,771 million and W 160,031,760 million as of December 31, 2025 and 2024 are included in the 'Less than 1 month' category, respectively.

(\*3) Though guarantees, loan agreements, and other credit offerings provided by the Group exist, if the counterparty requests a payment, the Group should fulfill the obligation immediately.

**(e) Measurement of fair value**

The fair values of financial instruments being traded in an active market are determined by the published market prices of each period end. The published market prices of financial instruments being held by the Group are based on the trading agencies' notifications.

If the market for a financial instrument is not active, such as OTC (Over-The-Counter market) derivatives, fair value is determined either by using a valuation technique or independent third-party valuation service. The Group uses its judgment to select a variety of methods and make rational assumptions that are mainly based on market conditions existing at the end of each reporting period.

The fair value of financial instruments is determined by using valuation techniques; a method of using recent transactions between independent parties with reasonable judgment and willingness to trade, a method of referring to the current fair value of other financial instruments that are substantially identical, discounted cash flow model and option pricing models. For example, the fair value of an interest rate swap is calculated as the present value of the expected future cash flows, and the fair value of foreign exchange forwarding contract is calculated by applying the public forward exchange rate at the end of the reporting period.

The Group classifies and discloses fair value of financial instruments into the following three-level hierarchy:

Level 1: Financial instruments measured at quoted prices from active markets are classified as fair value level 1.

Level 2: Financial instruments measured using valuation techniques where all significant inputs are observable market data are classified as level 2.

Level 3: Financial instruments measured using valuation techniques where one or more significant inputs are not based on observable market data are classified as level 3.

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**5. <u>Financial risk management (continued)</u>**

**(e) Measurement of fair value (continued)**

*i) Financial instruments measured at fair value*

*i-1) The fair value hierarchy of financial instruments presented at their fair values in the statements of financial position as of December 31, 2025 and 2024 are as follows:*

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  |  | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** |
|  |  | **Level 1** | **Level 2** | &nbsp;&nbsp;&nbsp;**Level 3 (\*3)** | **Total** |
| **Financial assets:** |  |  |  |  |  |
| &nbsp;&nbsp;Due from banks at FVTPL | W | - | 40862  | - | 40862  |
| &nbsp;&nbsp;Loans at FVTPL (\*1)  |  | - | 506781  | 908473  | 1415254  |
| &nbsp;&nbsp;Securities at FVTPL: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Debt securities and other securities (\*2) |  | 12198754  | 41464110  | 17441328  | 71104192  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Equity securities |  | 2900162  | 461978  | 1507261  | 4869401  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gold/silver deposits |  | 623668  | - | - | 623668  |
|  |  | 15722584  | 41926088  | 18948589  | 76597261  |
| &nbsp;&nbsp;Derivative assets: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Trading |  | 63896  | 5876734  | 596229  | 6536859  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Hedging |  | - | 617091  | - | 617091  |
|  |  | 63896  | 6493825  | 596229  | 7153950  |
| &nbsp;&nbsp;Securities at FVOCI: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Debt securities |  | 37077188  | 64196579  | 9139  | 101282906  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Equity securities |  | 998372  | - | 935672  | 1934044  |
|  |  | 38075560  | 64196579  | 944811  | 103216950  |
|  | W | 53862040  | 113164135  | 21398102  | 188424277  |
| **Financial liabilities:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Financial liabilities at FVTPL: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Securities sold (\*2) | W | 790416  | - | - | 790416  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gold/silver deposits |  | 1522071  | - | - | 1522071  |
|  |  | 2312487  | - | - | 2312487  |
| &nbsp;&nbsp;&nbsp;Financial liabilities designated at FVTPL: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Derivatives-combined securities (\*2) |  | - | 255532  | 5834683  | 6090215  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Debt securities issued |  | - | 287849  | - | 287849  |
|  |  | - | 543381  | 5834683  | 6378064  |
| &nbsp;&nbsp;Derivative liabilities: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Trading |  | 38222  | 5540526  | 293655  | 5872403  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Hedging |  | - | 994626  | 153817  | 1148443  |
|  |  | 38222  | 6535152  | 447472  | 7020846  |
|  | W | 2350709  | 7078533  | 6282155  | 15711397  |

---

(\*1) Of the Financial assets at FVTPL invested by the Group, P-note's valuation of amount related to Lime Asset Management is W 27 billion. As of December 31, 2025, in this regard, international disputes are under way, the Group has estimated its fair value based on financial information within the recent audit report of underlying assets since it doesn't have fair market value observable through active trading markets.

(\*2) Financial instruments (Beneficiary certificates: W 181.8 billion and derivatives-combined securities: W 181.8 billion) related to GEN2 Partners asset management were delayed in repurchase for the year ended December 31, 2020. The company estimated fair value using the net asset value based on the most recent data available for the repurchase suspension fund. Since then, it has an uncertainty in measuring fair value due to market conditions.

(\*3) Using its internal valuation model, Shinhan Securities Co., Ltd.'s level 3 over-the-counter derivatives is recognized W 47,665 million in financial assets measured at fair value through profit or loss, W 5,834,683 million in financial liabilities designated at fair value through profit or loss, W 146,924 million in derivative assets, and W 284,145 million in derivative liabilities.

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**5. <u>Financial risk management (continued)</u>**

**(e) Measurement of fair value (continued)**

*i) Financial instruments at fair value (continued)*

*i-1) The fair value hierarchy of financial instruments presented at their fair values in the statements of financial position as of December 31, 2025 and 2024 are as follows (continued):* 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  |  | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
|  |  | **Level 1** | **Level 2** | &nbsp;&nbsp;&nbsp;**Level 3 (\*3)** | **Total** |
| **Financial assets:** |  |  |  |  |  |
| &nbsp;&nbsp;Due from banks at FVTPL | W | - | 35450 | - | 35450 |
| &nbsp;&nbsp;Loans at FVTPL (\*1)  |  | - | 745412 | 1134534 | 1879946 |
| &nbsp;&nbsp;Securities at FVTPL: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Debt securities and other securities (\*2) |  | 11870768  | 39052189  | 16082867  | 67005824  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Equity securities |  | 1618125  | 64277  | 1414926  | 3097328  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gold/silver deposits |  | 128297  | - | - | 128297  |
|  |  | 13617190  | 39116466  | 17497793  | 70231449  |
| &nbsp;&nbsp;Derivative assets: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Trading |  | 85439  | 8772280  | 719177  | 9576896  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Hedging |  | - | 702361  | - | 702361  |
|  |  | 85439  | 9474641  | 719177  | 10279257  |
| &nbsp;&nbsp;Securities at FVOCI: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Debt securities |  | 35984894 | 56031316 | - | 92016210 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Equity securities |  | 866968 | - | 922191 | 1789159 |
|  |  | 36851862 | 56031316 | 922191 | 93805369 |
|  | W | 50554491 | 105403285 | 20273695 | 176231471 |
| **Financial liabilities:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Financial liabilities at FVTPL: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Securities sold (\*2) | W | 357841 | - | - | 357841 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gold/silver deposits |  | 597058 | - | - | 597058 |
|  |  | 954899 | - | - | 954899 |
| &nbsp;&nbsp;&nbsp;Financial liabilities designated at FVTPL: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Derivatives-combined securities (\*2) |  | - | 819919 | 7139257 | 7959176 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Debt securities issued |  | - | 261299 | - | 261299 |
|  |  | - | 1081218 | 7139257 | 8220475 |
| &nbsp;&nbsp;Derivative liabilities: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Trading |  | 22721 | 8476885 | 536855 | 9036461 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Hedging |  | - | 814374 | 207697 | 1022071 |
|  |  | 22721 | 9291259 | 744552 | 10058532 |
|  | W | 977620 | 10372477 | 7883809 | 19233906 |

---

(\*1) Of the Financial assets at FVTPL invested by the Group, P-note's valuation of amount related to Lime Asset Management is W 40.8 billion. As of December 31, 2024, in this regard, international disputes are under way, the Group has estimated its fair value based on financial information within the recent audit report of underlying assets since it doesn't have fair market value observable through active trading markets. Accounting estimates and assumptions used in preparing consolidated financial statements may lead to adjustment in response to changes in uncertainty, such as information and market conditions available in the future. In addition, the ultimate impact on the business, financial condition, performance, and liquidity of the Group is unpredictable.

(\*2) Financial instruments (Beneficiary certificates: W 175 billion and derivatives-combined securities: W 175 billion) related to GEN2 Partners asset management were delayed in repurchase for the year ended December 31, 2020. The company estimated fair value using the net asset value based on the most recent data available for the repurchase suspension fund. Since then, it has an uncertainty in measuring fair value due to market conditions.

(\*3) Shinhan Securities Co., Ltd's level 3 over-the-counter derivatives is recognized W 86,279 million in financial assets measured at fair value through profit or loss, W 7,146,909 million in financial liabilities designated at fair value through profit or loss, W 718,788 million in derivative assets, and W 535,162 million in derivative liabilities. The fair value of over-the-counter derivatives classified as level 3 above is measured using Shinhan Securities Co., Ltd.'s internal valuation model.

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**5. <u>Financial risk management (continued)</u>**

**(e) Measurement of fair value (continued)**

*i) Financial instruments at fair value (continued)*

*i-2) Classification of financial instruments as fair value level 3*

The Group uses the value from evaluators who are qualified and external independent to determine the fair value for Group's assets at the end of each reporting period. Changes in carrying amounts of financial instruments classified as Level 3 for the years ended December 31, 2025 and 2024 are as follows:

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** |
|  |  | Financial<br>asset<br>at FVTPL | Securities<br>at FVOCI | Financial liabilities designated at FVTPL | Held for trading | Held for trading | Held for hedging | Held for hedging |
|  |  | Financial<br>asset<br>at FVTPL | Securities<br>at FVOCI | Financial liabilities designated at FVTPL | Derivative assets | Derivative liabilities | Derivative assets | Derivative liabilities |
| &nbsp;&nbsp;&nbsp;Beginning balance | W | 18632327  | 922191  | (7139257) | 719177  | (536855) | - | (207697) |
| &nbsp;&nbsp;&nbsp;Recognized in total comprehensive income for the year: |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Recognized in profit (loss) for the period (\*1) |  | 8721 | - | (225030) | 95523  | 155722  | - | 36007  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Recognized in other comprehensive income (loss) for the year |  | (531) | 69448  | (4165) | - | - | - | - |
|  |  | 8190  | 69448  | (229195) | 95523  | 155722  | - | 36007  |
| &nbsp;&nbsp;&nbsp;Purchase |  | 5875977  | 6324  | - | 87869  | (30005) | - | (13580) |
| &nbsp;&nbsp;&nbsp;Issue |  | - | - | (6407756) | - | - | - | - |
| &nbsp;&nbsp;&nbsp;Settlement |  | (4667721) | (62292) | 7941525  | (306359) | 117483  | - | 31453  |
| &nbsp;&nbsp;&nbsp;Transfer to level3 (\*2) |  | 65173  | 9140  | - | 23  | - | - | - |
| &nbsp;&nbsp;&nbsp;Transfer out of level3 (\*2) |  | (56884) | - | - | (4) | - | - | - |
| &nbsp;&nbsp;&nbsp;Ending balance | W | 19857062  | 944811  | (5834683) | 596229  | (293655) | - | (153817) |

---

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**5. <u>Financial risk management (continued)</u>**

**(e) Measurement of fair value (continued)**

*i) Financial instruments measured at fair value (continued)*

*i-2) Classification of financial instruments as fair value level 3 (continued)*

The Group uses the value from evaluators who are qualified and external independent to determine the fair value for Group's assets at the end of each reporting period. Changes in carrying amounts of financial instruments classified as Level 3 for the years ended December 31, 2025 and 2024 are as follows (continued):

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
|  |  | Financial<br>asset<br>at FVTPL | Securities<br>at FVOCI | Financial liabilities designated at FVTPL | Held for trading | Held for trading | Held for hedging | Held for hedging |
|  |  | Financial<br>asset<br>at FVTPL | Securities<br>at FVOCI | Financial liabilities designated at FVTPL | Derivative assets | Derivative liabilities | Derivative assets | Derivative liabilities |
| &nbsp;&nbsp;&nbsp;Beginning balance | W | 17327888  | 949183  | (6725252) | 632213  | (783587) | - | (224195) |
| &nbsp;&nbsp;&nbsp;Recognized in total comprehensive income for the year: |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Recognized in profit (loss) for the period (\*1) |  | 355895 | - | (74680) | 64091  | (307946) | - | 16498  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Recognized in other comprehensive income (loss) for the year |  | 3287  | (77241) | (8614) | - | - | - | - |
|  |  | 359182  | (77241) | (83294) | 64091  | (307946) | - | 16498  |
| &nbsp;&nbsp;&nbsp;Purchase |  | 7120860  | 55431  | - | 1318715  | (11529) | - | - |
| &nbsp;&nbsp;&nbsp;Issue |  | - | - | (7993276) | - | - | - | - |
| &nbsp;&nbsp;&nbsp;Settlement |  | (5798938) | (5153) | 7662565  | (1299773) | 566207  | - | - |
| &nbsp;&nbsp;&nbsp;Transfer to level3 (\*2) |  | 17407  | - | - | 3931  | - | - | - |
| &nbsp;&nbsp;&nbsp;Transfer out of level3 (\*2) |  | (394072) | (29) | - | - | - | - | - |
| &nbsp;&nbsp;&nbsp;Ending balance | W | 18632327  | 922191  | (7139257) | 719177  | (536855) | - | (207697) |

---

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**5. <u>Financial risk management (continued)</u>**

**(e) Measurement of fair value (continued)**

*i) Financial instruments at fair value (continued)*

*i-2) Classification of financial instruments as fair value level 3 (continued)*

(\*1) Recognized profit or loss of the changes in carrying amount of financial instruments classified as Level 3 for the years ended December 31, 2025 and 2024 are included in the accounts of the consolidated statements of comprehensive income, of which the amounts and the related accounts are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  |  | **December 31, 2025** | **December 31, 2025** |
|  |  | Amounts recognized in profit or loss | Recognized profit or loss from the financial instruments held as of December 31 |
| &nbsp;&nbsp;&nbsp;Net gain on financial assets at FVTPL  | W | 259966  | 250113  |
| &nbsp;&nbsp;&nbsp;Net gain (loss) on financial liabilities designated at FVTPL |  | (225030) | 2884  |
| &nbsp;&nbsp;&nbsp;Net other operating income (loss) |  | 36007  | 36007  |
|  | W | 70943  | 289004  |

---

---

| | | | |
|:---|:---|:---|:---|
|  |  | **December 31, 2024** | **December 31, 2024** |
|  |  | Amounts recognized in profit or loss | Recognized profit or loss from the financial instruments held as of December 31 |
| &nbsp;&nbsp;&nbsp;Net gain on financial assets at FVTPL  | W | 112040 | 443935 |
| &nbsp;&nbsp;&nbsp;Net gain (loss) on financial liabilities designated at FVTPL  |  | (74680) | 102961  |
| &nbsp;&nbsp;&nbsp;Net other operating income (loss) |  | 16498 | 16497 |
|  | W | 53858 | 563393 |

---

(\*2) Transfers between levels result from changes in the availability of observable market data for the financial instruments. The Group recognizes such transfers at the end of the reporting period in which the change occurs.

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**5. <u>Financial risk management (continued)</u>**

**(e) Measurement of fair value (continued)**

*i) Financial instruments at fair value (continued)*

*i-3) Valuation techniques and significant inputs not observable in markets* 

1Valuation techniques and inputs used in measuring the fair value of financial instruments classified as level 2 as of December 31, 2025 and 2024 are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** |
| &nbsp;&nbsp;**Type of financial instrument** | **Valuation technique** |  | &nbsp;&nbsp;&nbsp;**Carrying**<br>**value** | **Significant inputs** |
| &nbsp;&nbsp;**Assets** |  |  |  |  |
| &nbsp;&nbsp;Financial assets at FVTPL |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Debt securities | DCF, NAV,<br>Option model (\*) | W | 42011753 | &nbsp;&nbsp;Discount rate, interest rate, stock price, etc. |
| &nbsp;&nbsp;&nbsp;Equity securities | NAV,<br>Option model (\*) |  | 461978 | &nbsp;&nbsp;Price of underlying assets such as stocks, bonds, dividend yield |
|  |  |  | 42473731 |  |
| &nbsp;&nbsp;Derivative assets |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Trading | Option model (\*), Implied forward interest rate,<br>DCF |  | 5876734 | &nbsp;&nbsp;Discount rate, foreign exchange rate, volatility, stock price, commodity index, etc. |
| &nbsp;&nbsp;&nbsp;&nbsp;Hedging | Option model (\*), Implied forward interest rate,<br>DCF |  | 617091 | &nbsp;&nbsp;Discount rate, foreign exchange rate, volatility, stock price, commodity index, etc. |
|  |  |  | 6493825 |  |
| &nbsp;&nbsp;Securities at FVOCI |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Debt securities | DCF,<br>Option model (\*) |  | 64196579 | &nbsp;&nbsp;Interest rate, discount rate, etc. |
|  |  | W | 113164135 |  |
| &nbsp;&nbsp;**Liabilities** |  |  |  |  |
| &nbsp;&nbsp;Financial liabilities designated at FVTPL  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Derivative-linked securities sold | Option model (\*), NAV |  | 255532 | Underlying asset price |
| &nbsp;&nbsp;&nbsp;&nbsp;Debt securities issued  | Option model (\*), NAV | W | 287849 | Discount rate, volatility |
|  |  |  | 543381 |  |
| &nbsp;&nbsp;Derivative liabilities |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Trading | Option model (\*),<br>Forward interest rate, DCF |  | 5540526 | &nbsp;&nbsp;Discount rate, foreign exchange rate, volatility, stock price and commodity index, etc. |
| &nbsp;&nbsp;&nbsp;&nbsp;Hedging | Option model (\*),<br>Forward interest rate, DCF |  | 994626 | &nbsp;&nbsp;Discount rate, foreign exchange rate, volatility, stock price and commodity index, etc. |
|  |  |  | 6535152 |  |
|  |  | W | 7078533 |  |

---

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**5. <u>Financial risk management (continued)</u>**

**(e) Measurement of fair value (continued)**

*i) Financial instruments at fair value (continued)*

*i-3) Valuation techniques and significant inputs not observable in markets (continued)* 

1 Valuation techniques and inputs used in measuring the fair value of financial instruments classified as level 2 as of December 31, 2025 and 2024 are as follows (continued):

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
| &nbsp;&nbsp;**Type of financial instrument** | **Valuation technique** |  | &nbsp;&nbsp;&nbsp;**Carrying**<br>**value** | **Significant inputs** |
| &nbsp;&nbsp;**Assets** |  |  |  |  |
| &nbsp;&nbsp;Financial assets at FVTPL |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Debt securities | DCF, NAV,<br>Option model (\*) | W | 39833051 | &nbsp;&nbsp;Discount rate, interest rate, stock price, etc. |
| &nbsp;&nbsp;&nbsp;&nbsp;Equity securities | NAV |  | 64277 | &nbsp;&nbsp;Price of underlying assets such as stocks, bonds, etc. |
|  |  |  | 39897328 |  |
| &nbsp;&nbsp;Derivative assets |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Trading | Option model (\*), Implied forward interest rate,<br>DCF |  | 8772280 | &nbsp;&nbsp;Discount rate, foreign exchange rate, volatility, stock price, commodity index, etc. |
| &nbsp;&nbsp;&nbsp;&nbsp;Hedging | Option model (\*), Implied forward interest rate,<br>DCF |  | 702361 | &nbsp;&nbsp;Discount rate, foreign exchange rate, volatility, stock price, commodity index, etc. |
|  |  |  | 9474641 |  |
| &nbsp;&nbsp;Securities at FVOCI |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Debt securities | DCF, <br>Option model (\*) |  | 56031316 | &nbsp;&nbsp;Interest rate, discount rate, etc. |
|  |  | W | 105403285 |  |
| &nbsp;&nbsp;**Liabilities** |  |  |  |  |
| &nbsp;&nbsp;Financial liabilities designated at FVTPL  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Derivative-linked securities sold | Option model (\*), NAV |  | 819919 | Underlying asset price |
| &nbsp;&nbsp;&nbsp;Debt securities issued  | Option model (\*), NAV | W | 261299 | Discount rate, volatility |
|  |  |  | 1081218 |  |
| &nbsp;&nbsp;Derivative liabilities |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Trading | Option model (\*),<br>Forward interest rate, DCF |  | 8476885 | &nbsp;&nbsp;Discount rate, foreign exchange rate, volatility, stock price, commodity index, etc. |
| &nbsp;&nbsp;&nbsp;&nbsp;Hedging | Option model (\*),<br>Forward interest rate, DCF |  | 814374 | &nbsp;&nbsp;Discount rate, foreign exchange rate, volatility, stock price, commodity index, etc. |
|  |  |  | 9291259 |  |
|  |  | W | 10372477 |  |

---

(\*) Option models applied to measure fair value include the Black-Scholes model and Hull-White model, and methods such as Monte Carlo simulation are applied to some products depending on the product type.

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**5. <u>Financial risk management (continued)</u>**

**(e) Measurement of fair value (continued)**

*i) Financial instruments at fair value (continued)*

*i-3) Valuation techniques and significant inputs not observable in markets (continued)* 

2 Valuation techniques and significant inputs, but not observable, used in measuring the fair value of financial instruments classified as level 3 as of December 31, 2025 and 2024 are as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** |
| **Type of financial instrument** | **Valuation technique** |  | &nbsp;&nbsp;&nbsp;**Carrying**<br>**Value (\*2)** | **Significant unobservable inputs** | **Range** |
| &nbsp;&nbsp;**Financial assets** |  |  |  |  |  |
| &nbsp;&nbsp;Financial assets at FVTPL |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Debt securities | DCF, NAV, Option model (\*1), Income approach | W | 18349801  | The volatility of the underlying asset,<br>Discount rate,<br>Correlations<br>Growth rate,<br>Interest rate volatility,<br>Liquidation Value | 0.50~67.94%<br>4.04~17.95%<br>31.11~69.16%<br>0.00%<br>0.46~0.70%<br> 0.00% |
| &nbsp;&nbsp;&nbsp;Equity securities | DCF, NAV, Option model (\*1),<br>Comparable company analysis, Transaction case price, Dividend discount model (DDM),<br>Cost method |  | 1507261  | The volatility of the underlying asset,<br>Discount rate,<br>Growth rate,<br>Interest rate volatility,<br>Liquidation Value | <br>0.00~68.67%<br> 3.14~45.20%<br>0.00%<br> 0.46~0.70%<br>0.00% |
|  |  |  | 19857062  |  |  |
| Derivative assets |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Equity and foreign exchange related | Option model (\*1) |  | 25130  | The volatility of the underlying asset,<br>Correlations | 10.63~61.54%<br>30.33~82.07% |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest rates related | Option model (\*1) |  | 71254  | The volatility of the underlying asset,<br>Correlations | 0.48~1.51%<br>-70.00~61.85% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Credit and commodity related | Option model (\*1) |  | 499845  | The volatility of the underlying asset, Correlations,<br>Hazard Rate | 30.76~31.08%<br> 99.63%<br> 0.08~9.29% |
|  |  | W | 596229  |  |  |

---

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**5. <u>Financial risk management (continued)</u>**

**(e) Measurement of fair value (continued)**

*i) Financial instruments at fair value (continued)* 

*i-3) Valuation techniques and significant inputs not observable in markets (continued)* 

2 Valuation techniques and significant inputs, but not observable, used in measuring the fair value of financial instruments classified as level 3 as of December 31, 2025 and 2024 are as follows (continued):

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** |
| **Type of financial instrument** | **Valuation technique** |  | &nbsp;&nbsp;&nbsp;**Carrying**<br>**Value (\*2)** | **Significant unobservable inputs** | **Range** |
| **Financial assets** |  |  |  |  |  |
| Securities at FVOCI |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Debt securities | Option model (\*1) | W | 9139  | Discount rate,<br>Interest rate volatility | 6.23%<br> 7.92% |
| &nbsp;&nbsp;&nbsp;&nbsp;Equity securities | DCF, NAV, Option model (\*1),<br>Comparable company analysis,<br>Cost method |  | 935672  | The volatility of the underlying asset, Discount rate,<br>Growth rate,<br>Interest rate volatility,<br> Liquidation Value | 23.87%<br>4.23~16.33%<br>0.00%<br>0.46~0.70%<br>0.00% |
|  |  |  | 944811  |  |  |
|  |  |  | 21398102  |  |  |
| **Financial liabilities** |  |  |  |  |  |
| &nbsp;&nbsp;Financial liabilities designated at fair<br>value through profit or<br>loss |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Equity related | Option model (\*1) |  | 5834683 | The volatility of the underlying asset,<br>Correlations | 0.48~61.54%<br>-70.00~82.07% |
| Derivative liabilities |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Equity and foreign<br>exchange related | Option model (\*1) |  | 21150  | The volatility of the underlying asset,<br>Correlations | 8.20~61.54%<br>0.23~82.07% |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest rates related | Option model (\*1) |  | 335811  | The volatility of the underlying asset,<br>Regression coefficient,<br>Correlations | 0.48~1.51%<br>0.01~0.98%<br>-70.00~90.34% |
| &nbsp;&nbsp;&nbsp;&nbsp;Credit and commodity<br>related | Option model (\*1) |  | 90511  | The volatility of the underlying asset, Correlations,<br>Hazard Rate | 0.65~1.51%<br>-70.00~61.85%<br>0.21~9.22% |
|  |  |  | 447472  |  |  |
|  |  | W | 6282155  |  |  |

---

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**5. <u>Financial risk management (continued)</u>**

**(e) Measurement of fair value (continued)**

*i) Financial instruments at fair value (continued)* 

*i-3) Valuation techniques and significant inputs not observable in markets (continued)* 

2 Valuation techniques and significant inputs, but not observable, used in measuring the fair value of financial instruments classified as level 3 as of December 31, 2025 and 2024 are as follows (continued):

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
| **Type of financial instrument** | **Valuation technique** |  | &nbsp;&nbsp;&nbsp;**Carrying**<br>**Value (\*2)** | **Significant unobservable inputs** | **Range** |
| &nbsp;&nbsp;**Financial assets** |  |  |  |  |  |
| &nbsp;&nbsp;Financial assets at FVTPL |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Debt securities, loans | DCF, NAV, Option model (\*1), Income approach | W | 17217401 | The volatility of the underlying asset,<br>Discount rate,<br>Correlations<br>Growth rate,<br>Liquidation Value | 0.56~81.72%<br>2.74~11.07%<br>4.74~82.57%<br>0.00%<br>0.00% |
| &nbsp;&nbsp;&nbsp;Equity securities | DCF, NAV, Option model (\*1),<br>Comparable company analysis, Transaction case price, Dividend discount model (DDM),<br>Cost method |  | 1414926 | The volatility of the underlying asset,<br>Discount rate,<br>Growth rate<br>Interest rate volatility | <br>25.58~53.67%<br>3.60~15.44%<br>0.00%<br>0.46~0.73% |
|  |  |  | 18632327 |  |  |
| Derivative assets |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Equity and foreign exchange related | Option model (\*1) |  | 125445 | The volatility of the underlying asset,<br>Correlations | 10.35~41.28%<br>41.60~73.24% |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest rates related | Option model (\*1) |  | 85141 | The volatility of the underlying asset,<br>Correlations | 0.46~0.66%<br>-38.28~69.59% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Credit and commodity related | Option model (\*1) |  | 508591 | The volatility of the underlying asset, Correlations,<br>Hazard Rate | 30.92~31.36%<br>99.88~99.96%<br>0.16~8.90% |
|  |  |  | 719177 |  |  |
| &nbsp;&nbsp;Securities at FVOCI |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Equity securities | DCF, NAV, Option model (\*1),<br>Comparable company analysis |  | 922191 | The volatility of the underlying asset, Discount rate,<br>Growth rate,<br>Interest rate volatility | 22.95%<br>4.75~14.03%<br>-1.00~1.00%<br>0.41~67.91% |
| &nbsp;&nbsp;&nbsp;Equity securities | DCF, NAV, Option model (\*1),<br>Comparable company analysis |  | 922191 | The volatility of the underlying asset, Discount rate,<br>Growth rate,<br>Interest rate volatility | 22.95%<br>4.75~14.03%<br>-1.00~1.00%<br>0.41~67.91% |
|  |  | W | 20273695 |  |  |

---

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**5. <u>Financial risk management (continued)</u>**

**(e) Measurement of fair value (continued)**

*i) Financial instruments at fair value (continued)* 

*i-3) Valuation techniques and significant inputs not observable in markets (continued)* 

2 Valuation techniques and significant inputs, but not observable, used in measuring the fair value of financial instruments classified as level 3 as of December 31, 2025 and 2024 are as follows (continued):

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
| **Type of financial instrument** | **Valuation technique** |  | &nbsp;&nbsp;&nbsp;**Carrying**<br>**Value (\*2)** | **Significant unobservable inputs** | **Range** |
| **Financial liabilities** |  |  |  |  |  |
| &nbsp;&nbsp;Financial liabilities designated at fair<br>value through profit or<br>loss |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Equity related | Option model (\*1) | W | 7139257 | The volatility of the underlying asset,<br>Correlations | 0.46~57.68%<br>-46.56~83.10% |
| Derivative liabilities |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Equity and foreign<br>exchange related | Option model (\*1) |  | 181858 | The volatility of the underlying asset,<br>Correlations | 7.86~57.68%<br>-46.56~83.10% |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest rates related | Option model (\*1) |  | 428049 | The volatility of the underlying asset,<br>Regression coefficient,<br>Correlations | 0.46~1.09%<br>0.00~2.32%<br>-38.28~90.34% |
| &nbsp;&nbsp;&nbsp;&nbsp;Credit and commodity<br>related | Option model (\*1) |  | 134645 | The volatility of the underlying asset, Correlations,<br>Hazard Rate | 6.98%<br>0.00%<br>0.29~6.05% |
|  |  |  | 744552 |  |  |
|  |  | W | 7883809 |  |  |

---

(\*1) The option pricing models used by the Group for valuation purposes include the Black-Scholes model, the Hull-White model, and Monte Carlo simulation, among others.

(\*2) Valuation techniques and input variables are not disclosed for items whose carrying amounts are considered to approximate fair value.

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**5. <u>Financial risk management (continued)</u>**

**(e) Measurement of fair value (continued)**

*i) Financial instruments at fair value (continued)* 

*i-4) Sensitivity for changing in unobservable inputs*

For level 3 fair value measurement, the effects of changes in one or more of the unobservable inputs on profit or loss, or other comprehensive income as of December 31, 2025 and 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  |  | **December 31, 2025** | **December 31, 2025** |
|  |  | **Favorable** <br>**changes** | **Unfavorable**<br>**changes** |
| **Financial assets:** |  |  |  |
| &nbsp;&nbsp;&nbsp;Effects on profit or loss for the period (\*1), (\*2): |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Financial assets at FVTPL | W | 35062  | (34827) |
| &nbsp;&nbsp;&nbsp;&nbsp;Derivative assets |  | 15446  | (14723) |
| &nbsp;&nbsp;Securities at FVOCI (\*2) |  | 60531  | (42863) |
|  | W | 111039  | (92413) |
| **Financial liabilities:** |  |  |  |
| &nbsp;&nbsp;&nbsp;Effects on profit or loss for the period (\*1): |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Financial liabilities designated at FVTPL | W | 14685  | (14764) |
| &nbsp;&nbsp;&nbsp;&nbsp;Derivative liabilities |  | 6889  | (7538) |
|  | W | 21574  | (22302) |

---

---

| | | | |
|:---|:---|:---|:---|
|  |  | **December 31, 2024** | **December 31, 2024** |
|  |  | **Favorable** <br>**changes** | **Unfavorable**<br>**changes** |
| **Financial assets:** |  |  |  |
| &nbsp;&nbsp;&nbsp;Effects on profit or loss for the period (\*1), (\*2): |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Financial assets at FVTPL | W | 38489  | (33351) |
| &nbsp;&nbsp;&nbsp;&nbsp;Derivative assets |  | 14813  | (14777) |
| &nbsp;&nbsp;Securities at FVOCI (\*2) |  | 74482  | (49291) |
|  | W | 127784  | (97419) |
| **Financial liabilities:** |  |  |  |
| &nbsp;&nbsp;&nbsp;Effects on profit or loss for the period (\*1): |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Financial liabilities designated at FVTPL | W | 19782  | (20339) |
| &nbsp;&nbsp;&nbsp;&nbsp;Derivative liabilities |  | 25420  | (21955) |
|  | W | 45202  | (42294) |

---

(\*1) Fair value changes are calculated by increasing or decreasing the volatility of the underlying asset (-10~10%p) or correlations (-10~10%p), a significant unobservable input.

(\*2) Fair value changes are calculated by increasing or decreasing the growth rate and discount rate, which are a significant unobservable input, from -1% p to 1%p.

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**5. <u>Financial risk management (continued)</u>**

**(e) Measurement of fair value (continued)**

*ii) Financial instruments at amortized cost*

*ii-1) The method of calculating the fair value of financial instruments measured at amortized cost is as follows:*

---

| | |
|:---|:---|
| **Type** | **Measurement methods of fair value** |
| &nbsp;&nbsp;&nbsp;Cash and <br>due from banks | The carrying amount and the fair value for cash are identical and most of deposits are floating interest rate deposits or overnight deposits of a short-term instrument. For this reason, the book value is used as a proxy for fair value. |
| Loans | The fair value of the loans is measured by discounting the expected cash flow using a discount rate that reflects the market interest rate and the credit risk of the borrower. |
| Securities  | An external professional evaluation agency is used to calculate the valuation amount using the market information. The agency calculates the fair value based on active market prices, and DCF model is used to calculate the fair value if there is no quoted price. |
| Deposits and borrowings<br>| The carrying amount and the fair value for demand deposits, cash management account deposits, call money as short-term instrument are identical. The remaining liabilities and borrowings were calculated as fair value by discounting contractual cash flows at the market interest rate that reflects the residual risk. |
| Debt securities issued | Where available, the fair value of deposits and borrowings is based on the published price quotations in an active market. In case there is no data for an active market price, it is measured by discounting the contractual cash flow at the market interest rate that reflects the residual risk. |
| &nbsp;&nbsp;Investment contract liabilities | The carrying amount of accumulated pension benefits of retirement pension contract holders, as defined under the Insurance Business Act and the Regulations on Supervision of Insurance Business, is used as a proxy for fair value as reliable estimates of expected future cash flows are not available. |
| Other financial assets and<br> other financial liabilities | The carrying amount is measured at fair value for short-term and suspense accounts, such as spot exchange, inter-bank fund transfer, and domestic exchange of payments, and for the remaining financial instruments, the present value is calculated by discounting the contractual cash flows at the market interest rate that reflects the residual risk. |

---

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**5. <u>Financial risk management (continued)</u>**

**(e) Measurement of fair value (continued)**

*ii) Financial instruments at amortized cost (continued)*

*ii-2) The carrying amount and the fair value of financial instruments measured at amortized cost as of December 31, 2025 and 2024 are as follows:*

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  |  | **December 31, 2025** | **December 31, 2025** | **December 31, 2024** | **December 31, 2024** |
|  |  | **Carrying amount**  | **Fair value**  | **Carrying amount**  | **Fair value**  |
| Assets: |  |  |  |  |  |
| Deposits at amortized cost (\*) | W | 36859627  | 36793298  | 38228750 | 38159135 |
| Loans at amortized cost |  | 464773880  | 466291620  | 449295238 | 452724752 |
| Securities at amortized cost: |  |  |  |  |  |
| &nbsp;&nbsp;Government bonds |  | 22779176  | 22300505  | 21808057  | 21625666  |
| &nbsp;&nbsp;Financial institution bonds |  | 1837790  | 1851292  | 3787661  | 3828599  |
| &nbsp;&nbsp;Corporation bonds |  | 7327402  | 7239123  | 7720281  | 7694086  |
|  |  | 31944368  | 31390920  | 33315999  | 33148351  |
| Other financial assets |  | 43323340  | 43674984  | 23116960  | 23469322  |
|  | W | 576901215  | 578150822  | 543956947  | 547501560  |
| Liabilities: |  |  |  |  |  |
| Deposit liabilities: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Demand deposits | W | 172840773  | 172840773  | 160031759  | 160031759  |
| &nbsp;&nbsp;&nbsp;Time deposits |  | 238328250  | 238238605  | 236527490  | 236878216  |
| &nbsp;&nbsp;&nbsp;Certificate of deposit |  | 17001339  | 16970158  | 10409701  | 10481318  |
| &nbsp;&nbsp;&nbsp;Issued bill deposit |  | 8921064  | 8920096  | 7624787  | 7624245  |
| &nbsp;&nbsp;&nbsp;CMA deposits |  | 4889093  | 4889093  | 4451561  | 4451561  |
| &nbsp;&nbsp;&nbsp;Others |  | 5668452  | 5668466  | 3735747  | 3735726  |
|  |  | 447648971  | 447527191  | 422781045  | 423202825  |
| Borrowing debts: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Call-money |  | 1437100  | 1437100  | 1197823  | 1197823  |
| &nbsp;&nbsp;&nbsp;Bills sold |  | 11887  | 11846  | 8872  | 8831  |
| &nbsp;&nbsp;&nbsp;Bonds sold under repurchase agreements |  | 14988698  | 14988698  | 11542956  | 11542956  |
| &nbsp;&nbsp;&nbsp;Borrowings |  | 38957149  | 38924550  | 37170722  | 37236104  |
|  |  | 55394834  | 55362194  | 49920373  | 49985714  |
| Debt securities issued: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Borrowings in Korean won |  | 74937216  | 74697509 | 75106885  | 75610971  |
| &nbsp;&nbsp;&nbsp;Borrowings in foreign currency |  | 18054206  | 18273309  | 18658969  | 18759433  |
|  |  | 92991422  | 92970818 | 93765854  | 94370404  |
| Investment contract liabilities |  | 1536393  | 1536393  | 1165022 | 1165022 |
| Other financial liabilities |  | 57890911  | 57832606  | 39472400  | 39429575  |
|  | W | 655462531  | 655229202 | 607104694  | 608153540  |

---

(\*) Cash is not included.

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**5. <u>Financial risk management (continued)</u>**

**(e) Measurement of fair value (continued)**

*ii) Financial instruments at amortized cost (continued)*

*ii-3) The fair value hierarchy of financial assets and liabilities which are not measured at their fair values in the statements of financial position but disclosed with their fair value as of December 31, 2025 and 2024 are as follows:*

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  |  | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** |
|  |  | **Level 1** | **Level 2** | **Level 3** | **Total**  |
| Deposits at amortized cost (\*) | W | 269329 | 36523969 | - | 36793298 |
| Loans at amortized cost |  | - | 700039 | 465591581 | 466291620 |
| Securities at amortized cost: |  |  |  |  |  |
| &nbsp;&nbsp;Government bonds |  | 10815330 | 11485175 | - | 22300505 |
| &nbsp;&nbsp;Financial institution bonds |  | 80367 | 1770925 | - | 1851292 |
| &nbsp;&nbsp;Corporation bonds |  | - | 7239123 | - | 7239123 |
|  |  | 10895697 | 20495223 | - | 31390920 |
| Other financial assets |  | - | 29465771 | 14209213 | 43674984 |
|  | W | 11165026 | 87185002 | 479800794 | 578150822 |
| Liabilities: |  |  |  |  |  |
| Deposit liabilities: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Demand deposits | W | - | 172840773 | - | 172840773 |
| &nbsp;&nbsp;&nbsp;Time deposits |  | - | - | 238238605 | 238238605 |
| &nbsp;&nbsp;&nbsp;Certificate of deposit |  | - | - | 16970158 | 16970158 |
| &nbsp;&nbsp;&nbsp;Issued bill deposit |  | - | - | 8920096 | 8920096 |
| &nbsp;&nbsp;&nbsp;CMA deposits |  | - | 4889093 | - | 4889093 |
| &nbsp;&nbsp;&nbsp;Other |  | - | 5625593 | 42873 | 5668466 |
|  |  | - | 183355459 | 264171732 | 447527191 |
| Borrowing debts: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Call-money |  | - | 1437100 | - | 1437100 |
| &nbsp;&nbsp;&nbsp;Bills sold |  | - | - | 11846 | 11846 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Bonds sold under repurchase agreements |  | - | - | 14988698 | 14988698 |
| &nbsp;&nbsp;&nbsp;Borrowings |  | - | 108795 | 38815755 | 38924550 |
|  |  | - | 1545895 | 53816299 | 55362194 |
| Debt securities issued: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Borrowings in won |  | - | 40127224 | 34570285 | 74697509 |
| &nbsp;&nbsp;&nbsp;Borrowings in foreign currency |  | - | 12618554 | 5654755 | 18273309 |
|  |  | - | 52745778 | 40225040 | 92970818 |
| Investment contract liabilities |  | - | - | 1536393 | 1536393 |
| Other financial liabilities |  | - | 22535595 | 35297011 | 57832606 |
|  | W | - | 260182727 | 395046475 | 655229202 |

---

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**5. <u>Financial risk management (continued)</u>**

**(e) Measurement of fair value (continued)**

*ii) Financial instruments at amortized cost (continued)*

*ii-3) The fair value hierarchy of financial assets and liabilities which are not measured at their fair values in the statements of financial position but disclosed with their fair value as of December 31, 2025 and 2024 are as follows (continued):*

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  |  | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
|  |  | **Level 1** | **Level 2** | **Level 3** | **Total**  |
| Deposits at amortized cost (\*) | W | 537760 | 37621375 | - | 38159135 |
| Loans at amortized cost |  | - | 965455 | 451759297 | 452724752 |
| Securities at amortized cost: |  |  |  |  |  |
| &nbsp;&nbsp;Government bonds |  | 11292066  | 10333600  | - | 21625666  |
| &nbsp;&nbsp;Financial institution bonds |  | 331421  | 3497178  | - | 3828599  |
| &nbsp;&nbsp;Corporation bonds |  | - | 7694086  | - | 7694086  |
|  |  | 11623487  | 21524864  | - | 33148351  |
| Other financial assets |  | - | 13474763 | 9994559 | 23469322 |
|  | W | 12161247 | 73586457 | 461753856 | 547501560 |
| Liabilities: |  |  |  |  |  |
| Deposit liabilities: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Demand deposits | W | - | 160031759  | - | 160031759  |
| &nbsp;&nbsp;&nbsp;Time deposits |  | - | - | 236878216  | 236878216  |
| &nbsp;&nbsp;&nbsp;Certificate of deposit |  | - | - | 10481318  | 10481318  |
| &nbsp;&nbsp;&nbsp;Issued bill deposit |  | - | - | 7624245  | 7624245  |
| &nbsp;&nbsp;&nbsp;CMA deposits |  | - | 4451561  | - | 4451561  |
| &nbsp;&nbsp;&nbsp;Other |  | - | 3694921  | 40805  | 3735726  |
|  |  | - | 168178241  | 255024584  | 423202825  |
| Borrowing debts: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Call-money |  | - | 1197823  | - | 1197823  |
| &nbsp;&nbsp;&nbsp;Bills sold |  | - | - | 8831  | 8831  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Bonds sold under repurchase agreements |  | - | - | 11542956  | 11542956  |
| &nbsp;&nbsp;&nbsp;Borrowings |  | - | 19922  | 37216182  | 37236104  |
|  |  | - | 1217745  | 48767969  | 49985714  |
| Debt securities issued: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Borrowings in won |  | - | 43460315  | 32150656  | 75610971  |
| &nbsp;&nbsp;&nbsp;Borrowings in foreign currency |  | - | 12899498  | 5859935  | 18759433  |
|  |  | - | 56359813  | 38010591  | 94370404  |
| Investment contract liabilities |  | - | - | 1165022 | 1165022 |
| Other financial liabilities |  | - | 10428026  | 29001549  | 39429575  |
|  | W | - | 236183825  | 371969715  | 608153540  |

---

(\*) Cash is not included.

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**5. <u>Financial risk management (continued)</u>**

**(e) Measurement of fair value (continued)**

*ii) Financial instruments at amortized cost (continued)*

*ii-4) Valuation techniques and inputs used in the fair value measurements categorized within Level 2 and Level 3 for fair value disclosures, which are not recognized at fair value, as at December 31, 2025 and 2024, are as follows:* 

---

| | | | | |
|:---|:---|:---|:---|:---|
|  |  | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** |
|  |  | &nbsp;&nbsp;**Fair value (\*)** | &nbsp;&nbsp;**Valuation technique** | **Inputs** |
|  |  | &nbsp;&nbsp;**Fair value (\*)** | &nbsp;&nbsp;**Valuation technique** | **Inputs** |
| &nbsp;&nbsp;**Financial instruments classified as level 2:** | &nbsp;&nbsp;**Financial instruments classified as level 2:** | &nbsp;&nbsp;**Financial instruments classified as level 2:** | &nbsp;&nbsp;**Financial instruments classified as level 2:** | &nbsp;&nbsp;**Financial instruments classified as level 2:** |
| &nbsp;&nbsp;Assets |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Due from banks at amortized cost | &nbsp;&nbsp;W | 36523969 | DCF | &nbsp;&nbsp;Discount rate |
| &nbsp;&nbsp;&nbsp;&nbsp;Loans at amortized cost |  | 700039 | &nbsp;&nbsp;DCF | &nbsp;&nbsp;Discount rate, Credit spread, Prepayment rate |
| &nbsp;&nbsp;&nbsp;&nbsp;Securities at amortized cost |  | 20495223 | &nbsp;&nbsp;DCF | &nbsp;&nbsp;Discount rate |
| &nbsp;&nbsp;&nbsp;&nbsp;Other financial assets |  | 29465771 | &nbsp;&nbsp;DCF | &nbsp;&nbsp;Discount rate |
| &nbsp;&nbsp;**Financial instruments classified as level 3:** |  |  |  |  |
| &nbsp;&nbsp;Assets |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Loans at amortized cost |  | 465591581 | &nbsp;&nbsp;DCF | &nbsp;&nbsp;Discount rate, Credit spread, Prepayment rate |
| &nbsp;&nbsp;&nbsp;&nbsp;Other financial assets |  | 14209213 | &nbsp;&nbsp;DCF | &nbsp;&nbsp;Discount rate |
|  | &nbsp;&nbsp;W | 566985796 |  |  |
| &nbsp;&nbsp;**Financial instruments classified as level 2:** |  |  |  |  |
| &nbsp;&nbsp;Liabilities |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Deposits | &nbsp;&nbsp;W | 183355459 | &nbsp;&nbsp;DCF | &nbsp;&nbsp;Discount rate |
| &nbsp;&nbsp;&nbsp;&nbsp;Borrowings |  | 1545895 | &nbsp;&nbsp;DCF | &nbsp;&nbsp;Discount rate |
| &nbsp;&nbsp;&nbsp;&nbsp;Debt securities issued |  | 52745778 | &nbsp;&nbsp;DCF | &nbsp;&nbsp;Discount rate |
| &nbsp;&nbsp;&nbsp;&nbsp;Other financial liabilities |  | 22535595 | &nbsp;&nbsp;DCF | &nbsp;&nbsp;Discount rate |
| &nbsp;&nbsp;**Financial instruments classified as level 3:** | &nbsp;&nbsp;**Financial instruments classified as level 3:** | &nbsp;&nbsp;**Financial instruments classified as level 3:** | &nbsp;&nbsp;**Financial instruments classified as level 3:** | &nbsp;&nbsp;**Financial instruments classified as level 3:** |
| &nbsp;&nbsp;Liabilities |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Deposits |  | 264171732  | &nbsp;&nbsp;DCF | &nbsp;&nbsp;Discount rate |
| &nbsp;&nbsp;&nbsp;&nbsp;Borrowings |  | 53816299  | &nbsp;&nbsp;DCF | &nbsp;&nbsp;Discount rate |
| &nbsp;&nbsp;&nbsp;&nbsp;Debt securities issued |  | 40225040 | &nbsp;&nbsp;DCF | &nbsp;&nbsp;Discount rate,<br>Regression coefficient,<br>Correlations |
| &nbsp;&nbsp;&nbsp;&nbsp;Investment contract liabilities |  | 1536393  | &nbsp;&nbsp;- | &nbsp;&nbsp;- |
| &nbsp;&nbsp;&nbsp;&nbsp;Other financial liabilities |  | 35297011  | &nbsp;&nbsp;DCF | &nbsp;&nbsp;Discount rate |
|  | &nbsp;&nbsp;W | 655229202 |  |  |

---

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**5. <u>Financial risk management (continued)</u>**

**(e) Measurement of fair value (continued)**

*ii) Financial instruments at amortized cost (continued)*

*ii-4) Valuation techniques and inputs used in the fair value measurements categorized within Level 2 and Level 3 for* 

*fair value disclosures, which are not recognized at fair value, as at December 31, 2025 and 2024, are as follows* 

*(continued):*

---

| | | | | |
|:---|:---|:---|:---|:---|
|  |  | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
|  |  | &nbsp;&nbsp;**Fair value (\*)** | &nbsp;&nbsp;**Valuation technique** | **Inputs** |
|  |  | &nbsp;&nbsp;**Fair value (\*)** | &nbsp;&nbsp;**Valuation technique** | **Inputs** |
| &nbsp;&nbsp;**Financial instruments classified as level 2:** | &nbsp;&nbsp;**Financial instruments classified as level 2:** | &nbsp;&nbsp;**Financial instruments classified as level 2:** | &nbsp;&nbsp;**Financial instruments classified as level 2:** | &nbsp;&nbsp;**Financial instruments classified as level 2:** |
| &nbsp;&nbsp;Assets |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Due from banks at amortized cost | &nbsp;&nbsp;W | 37621375 | DCF | &nbsp;&nbsp;Discount rate |
| &nbsp;&nbsp;&nbsp;&nbsp;Loans at amortized cost |  | 965455 | &nbsp;&nbsp;DCF | &nbsp;&nbsp;Discount rate, Credit spread,<br>Prepayment rate |
| &nbsp;&nbsp;&nbsp;&nbsp;Securities at amortized cost |  | 21524864  | &nbsp;&nbsp;DCF | &nbsp;&nbsp;Discount rate |
| &nbsp;&nbsp;&nbsp;&nbsp;Other financial assets |  | 13474763  | &nbsp;&nbsp;DCF | &nbsp;&nbsp;Discount rate |
| &nbsp;&nbsp;**Financial instruments classified as level 3:** |  |  |  |  |
| &nbsp;&nbsp;Assets |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Loans at amortized cost |  | 451759297  | &nbsp;&nbsp;DCF | &nbsp;&nbsp;Discount rate, Credit spread and Prepayment rate |
| &nbsp;&nbsp;&nbsp;&nbsp;Other financial assets |  | 9994559  | &nbsp;&nbsp;DCF | &nbsp;&nbsp;Discount rate |
|  | &nbsp;&nbsp;W | 535340313  |  |  |
| &nbsp;&nbsp;**Financial instruments classified as level 2:** |  |  |  |  |
| &nbsp;&nbsp;Liabilities |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Deposits | &nbsp;&nbsp;W | 168178241  | &nbsp;&nbsp;DCF | &nbsp;&nbsp;Discount rate |
| &nbsp;&nbsp;&nbsp;&nbsp;Borrowings |  | 1217745  | &nbsp;&nbsp;DCF | &nbsp;&nbsp;Discount rate |
| &nbsp;&nbsp;&nbsp;&nbsp;Debt securities issued |  | 56359813  | &nbsp;&nbsp;DCF | &nbsp;&nbsp;Discount rate |
| &nbsp;&nbsp;&nbsp;&nbsp;Other financial liabilities |  | 10428026  | &nbsp;&nbsp;DCF | &nbsp;&nbsp;Discount rate |
| &nbsp;&nbsp;&nbsp;**Financial instruments classified as level 3:** | &nbsp;&nbsp;&nbsp;**Financial instruments classified as level 3:** | &nbsp;&nbsp;&nbsp;**Financial instruments classified as level 3:** | &nbsp;&nbsp;&nbsp;**Financial instruments classified as level 3:** | &nbsp;&nbsp;&nbsp;**Financial instruments classified as level 3:** |
| &nbsp;&nbsp;Liabilities |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Deposits |  | 255024584  | &nbsp;&nbsp;DCF | &nbsp;&nbsp;Discount rate |
| &nbsp;&nbsp;&nbsp;&nbsp;Borrowings |  | 48767969  | &nbsp;&nbsp;DCF | &nbsp;&nbsp;Discount rate |
| &nbsp;&nbsp;&nbsp;&nbsp;Debt securities issued |  | 38010591 | &nbsp;&nbsp;DCF | &nbsp;&nbsp;Discount rate,<br>Regression coefficient,<br>Correlations |
| &nbsp;&nbsp;&nbsp;&nbsp;Investment contract liabilities |  | 1165022 | &nbsp;&nbsp;- | &nbsp;&nbsp;- |
| &nbsp;&nbsp;&nbsp;&nbsp;Other financial liabilities |  | 29001549 | &nbsp;&nbsp;DCF | &nbsp;&nbsp;Discount rate |
|  | &nbsp;&nbsp;W | 608153540 |  |  |

---

(\*) Valuation techniques and inputs are not disclosed when the carrying amount is a reasonable approximation of fair value.

*iii) Changes in gains or losses on valuation at the transaction date for the years ended December 31, 2025 and 2024, are as follows:*

---

| | | | |
|:---|:---|:---|:---|
|  |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**December 31, 2025** | **December 31, 2024** |
| Beginning balance | W | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(89230) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(81747) |
| New transactions |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(40646) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(33712) |
| Recognized in profit for the year |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;40199  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;26229 |
| &nbsp;&nbsp;Ending balance  | W | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(89677) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(89230) |

---

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**5. <u>Financial risk management (continued)</u>**

**(f) Classification by categories of financial instruments**

Financial assets and liabilities are measured at fair value or amortized cost. The financial instruments measured at fair value or amortized costs are measured in accordance with the Group's valuation methodologies, which are described in Note 5. (e) Measurement of fair value.

The carrying amounts of each category of financial assets and financial liabilities as of December 31, 2025 and 2024 are as follows:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  |  | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** |
|  |  | **Financial assets at FVTPL** | **Financial assets at FVOCI** | **Financial assets at amortized cost** | **Derivatives held for hedging** | **Total** |
| Assets: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash and due from banks at amortized cost | W | - | - | 39742605  | - | 39742605  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Due from banks at FVTPL |  | 40862  | - | - | - | 40862  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Securities at FVTPL |  | 76597261  | - | - | - | 76597261  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Derivatives assets |  | 6536859  | - | - | 617091  | 7153950  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loans at FVTPL |  | 1415254  | - | - | - | 1415254  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loans at amortized cost |  | - | - | 464773880  | - | 464773880  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Securities at FVOCI |  | - | 103216950  | - | - | 103216950  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Securities at amortized cost |  | - | - | 31944368  | - | 31944368  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Others |  | - | - | 43323340  | - | 43323340  |
|  | W | 84590236  | 103216950  | 579784193  | 617091  | 768208470  |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  |  | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** |
|  |  | **Financial liabilities**<br>**at FVTPL** | **Financial liabilities designated at FVTPL** | **Financial liabilities at amortized cost** | **Derivatives held for hedging** | **Total** |
| Liabilities: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deposits  | W | - | - | 447648971  | - | 447648971  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Financial liabilities at FVTPL |  | 2312487  | - | - | - | 2312487  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Financial liabilities designated at FVTPL |  | - | 6378064  | - | - | 6378064  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Derivatives liabilities |  | 5872403  | - | - | 1148443  | 7020846  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Borrowings |  | - | - | 55394834  | - | 55394834  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Debt securities issued |  | - | - | 92991422  | - | 92991422  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investment contract liabilities |  | - | - | 1536393  | - | 1536393  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Others |  | - | - | 57890911  | - | 57890911  |
|  | W | 8184890  | 6378064  | 655462531  | 1148443  | 671173928  |

---

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**5. <u>Financial risk management (continued)</u>**

**(f) Classification by categories of financial instruments (continued)**

The carrying amounts of each category of financial assets and financial liabilities as of December 31, 2025 and 2024 are as follows (continued):

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  |  | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
|  |  | **Financial assets at FVTPL** | **Financial assets at FVOCI** | **Financial assets at amortized cost** | **Derivatives held for hedging** | **Total** |
| Assets: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash and due from banks at amortized cost | W | - | - | 40525712 | - | 40525712 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Due from banks at FVTPL |  | 35450 | - | - | - | 35450  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Securities at FVTPL |  | 70231449  | - | - | - | 70231449  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Derivatives assets |  | 9576896  | - | - | 702361  | 10279257  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loans at FVTPL |  | 1879946  | - | - | - | 1879946  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loans at amortized cost |  | - | - | 449295238  | - | 449295238  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Securities at FVOCI |  | - | 93805369  | - | - | 93805369  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Securities at amortized cost |  | - | - | 33315999  | - | 33315999  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Others |  | - | - | 23116960 | - | 23116960 |
|  | W | 81723741 | 93805369 | 546253909 | 702361 | 722485380 |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  |  | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
|  |  | **Financial liabilities**<br>**at FVTPL** | **Financial liabilities designated at FVTPL** | **Financial liabilities at amortized cost** | **Derivatives held for hedging** | **Total** |
| Liabilities: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deposits  | W | - | - | 422781045 | - | 422781045 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Financial liabilities at FVTPL |  | 954899  | - | - | - | 954899  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Financial liabilities designated at FVTPL |  | - | 8220475  | - | - | 8220475  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Derivatives liabilities |  | 9036461  | - | - | 1022071  | 10058532  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Borrowings |  | - | - | 49920373  | - | 49920373 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Debt securities issued |  | - | - | 93765854  | - | 93765854  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investment contract liabilities |  | - | - | 1165022  | - | 1165022  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Others |  | - | - | 39472400 | - | 39472400 |
|  | W | 9991360 | 8220475 | 607104694 | 1022071 | 626338600 |

---

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**5. <u>Financial risk management (continued)</u>**

**(g) Transfer of financial instruments**

*i) Transfers that do not qualify for derecognition*

*i-1) Repurchase agreements (Repo)* 

As of December 31, 2025 and 2024, the details of financial instruments that do not qualify for derecognition, as the Group sold securities with an obligation to repurchase them at a fixed price under repurchase agreements, are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  |  | **December 31, 2025** | **December 31, 2024** |
| Transferred asset: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Securities at FVTPL | W | 7687437  | 10141306 |
| &nbsp;&nbsp;&nbsp;&nbsp;Securities at FVOCI |  | 4615372  | 645888 |
| &nbsp;&nbsp;&nbsp;&nbsp;Securities at amortized cost |  | 87569  | 199261 |
| &nbsp;&nbsp;&nbsp;&nbsp;Loans at amortized cost |  | 10700  | 20600 |
|  | W | 12401078  | 11007055 |
| Related liabilities: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Bonds sold under repurchase agreements (\*) | W | 14988698 | 11542956 |

---

(\*) As of December 31, 2025 and 2024, borrowed securities pledged as collateral in connection with repurchase agreements amounted to W 3,643,514 million and W 1,502,252 million, respectively.

*i-2) Securities loaned* 

If the securities owned by the Group are loaned, the ownership of the securities is transferred, but is required to be returned at the end of the loan period. Therefore, the Group continues to recognize the entire securities loaned as it holds most of the risks and compensation of the securities.

Securities loaned as of December 31, 2025 and 2024 are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  |  | &nbsp;&nbsp;&nbsp;**December 31, 2025** | **December 31, 2024** | **Borrowers** |
| &nbsp;&nbsp;Government bonds | W | 14992877  | 13611571 | &nbsp;&nbsp;Korea Securities Finance Corp.,<br>Korea Securities Depository, etc. |
| &nbsp;&nbsp;Financial institutions bonds |  | 408766  | 607175  | &nbsp;&nbsp;Korea Securities Finance Corp.,<br>Korea Securities Depository, etc. |
| &nbsp;&nbsp;Corporation bonds |  | 519713  | 465211  | &nbsp;&nbsp;BNP Paribas Securities Corp. |
| &nbsp;&nbsp;Equity securities |  | 40277  | 15826  | &nbsp;&nbsp;Korea Securities Depository, etc. |
|  | W | 15961633  | 14699783 |  |

---

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**5. <u>Financial risk management (continued)</u>**

**(g) Transfer of financial instruments (continued)**

*i) Transfers that do not qualify for derecognition (continued)*

*i-3) Securitization of financial assets*

The Group uses the securitization of financial assets as a means of financing and to transfer risk. Generally, these securitization transactions result in the transfer of contractual cash flows to the debt securities holders issued from the financial asset portfolio. The Group recognizes debt securities issued without derecognition of assets under individual agreements, partially recognizes assets to the extent of the Group's level of involvement in assets, or recognizes rights and obligations arising from the derecognition and transfer of assets as separate assets and liabilities. The Group derecognizes the entire asset only if it transfers contractual rights to the cash flows of financial assets or if it holds contractual rights but bears contractual obligations to pay cash flows to the other party without significant delays or reinvestment and transfers most of the risks and benefits of ownership (e.g., credit risk, interest rate risk, prepayment risk, etc.).

For the years ended December 31, 2025 and 2024, the carrying amount of financial assets related to securitization transactions that have neither been transferred nor derecognized are W 10,815,348 million and W 11,369,662 million, respectively; the carrying amounts of related liabilities are W 6,586,888 million and W 7,144,588 million, respectively.

*ii) Financial instruments qualified for derecognition and continued involvement*

There are no financial instruments which qualify for derecognition and in which the Group has continuing involvements as of December 31, 2025, and 2024.

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**5. <u>Financial risk management (continued)</u>**

**(h) Offsetting financial assets and financial liabilities**

Financial assets and liabilities subject to offsetting, enforceable master netting arrangements and similar agreements as of December 31, 2025 and 2024 are as follows:

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** |
|  |  | &nbsp;&nbsp;**Gross amounts of recognized financial assets/ liabilities** | &nbsp;&nbsp;**Gross amounts of recognized financial assets/ liabilities set off in the statement of financial position** | &nbsp;&nbsp;**Net amounts of financial assets/ liabilities presented in the statement of financial position** | &nbsp;&nbsp;**Related amounts not set off in the statement of financial position** | &nbsp;&nbsp;**Related amounts not set off in the statement of financial position** | &nbsp;&nbsp;**Net amount** |
|  |  | &nbsp;&nbsp;**Gross amounts of recognized financial assets/ liabilities** | &nbsp;&nbsp;**Gross amounts of recognized financial assets/ liabilities set off in the statement of financial position** | &nbsp;&nbsp;**Net amounts of financial assets/ liabilities presented in the statement of financial position** | &nbsp;&nbsp;**Financial**<br>**instruments** | &nbsp;&nbsp;**Cash collateral received** | &nbsp;&nbsp;**Net amount** |
| &nbsp;&nbsp;&nbsp;**Assets:** |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Derivatives (\*1) | &nbsp;&nbsp;W | &nbsp;&nbsp;7215469  | &nbsp;&nbsp;- | &nbsp;&nbsp;7215469  | &nbsp;&nbsp;22362966 | &nbsp;&nbsp;425193 | &nbsp;&nbsp;2546676 |
| &nbsp;&nbsp;Other financial instruments (\*1) |  | &nbsp;&nbsp;18119366  | &nbsp;&nbsp;- | &nbsp;&nbsp;18119366  | &nbsp;&nbsp;22362966 | &nbsp;&nbsp;425193 | &nbsp;&nbsp;2546676 |
| &nbsp;&nbsp;&nbsp;&nbsp;Securities repurchased under repurchase agreements and bonds purchased under repurchase agreements (\*2) |  | &nbsp;&nbsp;14417309  | &nbsp;&nbsp;- | &nbsp;&nbsp;14417309  | &nbsp;&nbsp;14220871  | &nbsp;&nbsp;- | &nbsp;&nbsp;196438  |
| &nbsp;&nbsp;&nbsp;&nbsp;Securities loaned (\*2) |  | &nbsp;&nbsp;1274760  | &nbsp;&nbsp;- | &nbsp;&nbsp;1274760  | &nbsp;&nbsp;1101854  | &nbsp;&nbsp;- | &nbsp;&nbsp;172906  |
| &nbsp;&nbsp;&nbsp;&nbsp;Domestic exchange settlement debit (\*3) |  | &nbsp;&nbsp;49477452  | &nbsp;&nbsp;38218494  | &nbsp;&nbsp;11258958  | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;11258958  |
| &nbsp;&nbsp;&nbsp;&nbsp;Receivables from disposal of securities (\*4) |  | &nbsp;&nbsp;14771529  | &nbsp;&nbsp;7247688  | &nbsp;&nbsp;7523841  | &nbsp;&nbsp;6110092  | &nbsp;&nbsp;- | &nbsp;&nbsp;1413749  |
|  | &nbsp;&nbsp;W | &nbsp;&nbsp;105275885  | &nbsp;&nbsp;45466182  | &nbsp;&nbsp;59809703  | &nbsp;&nbsp;43795783  | &nbsp;&nbsp;425193  | &nbsp;&nbsp;15588727  |
| &nbsp;&nbsp;&nbsp;**Liabilities:** |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Derivatives (\*1), (\*5) | &nbsp;&nbsp;W | &nbsp;&nbsp;13236855  | &nbsp;&nbsp;- | &nbsp;&nbsp;13236855  | &nbsp;&nbsp;22987953  | &nbsp;&nbsp;1000  | &nbsp;&nbsp;8021031  |
| &nbsp;&nbsp;Other financial instruments (\*1) |  | &nbsp;&nbsp;17773129  | &nbsp;&nbsp;- | &nbsp;&nbsp;17773129  | &nbsp;&nbsp;22987953  | &nbsp;&nbsp;1000  | &nbsp;&nbsp;8021031  |
| &nbsp;&nbsp;&nbsp;&nbsp;Bonds sold under repurchase agreements (\*2) |  | &nbsp;&nbsp;14988698  | &nbsp;&nbsp;- | &nbsp;&nbsp;14988698  | &nbsp;&nbsp;11768314  | &nbsp;&nbsp;- | &nbsp;&nbsp;3220384  |
| &nbsp;&nbsp;&nbsp;&nbsp;Securities borrowed (\*2) |  | &nbsp;&nbsp;790416  | &nbsp;&nbsp;- | &nbsp;&nbsp;790416  | &nbsp;&nbsp;790416  | &nbsp;&nbsp;- | &nbsp;&nbsp;- |
| &nbsp;&nbsp;&nbsp;&nbsp;Domestic exchange settlement pending (\*3) |  | &nbsp;&nbsp;42413447  | &nbsp;&nbsp;38218494  | &nbsp;&nbsp;4194953  | &nbsp;&nbsp;4097860  | &nbsp;&nbsp;- | &nbsp;&nbsp;97093  |
| &nbsp;&nbsp;&nbsp;&nbsp;Payable from purchase of securities (\*4) |  | &nbsp;&nbsp;14808991  | &nbsp;&nbsp;7247688  | &nbsp;&nbsp;7561303  | &nbsp;&nbsp;6110113  | &nbsp;&nbsp;- | &nbsp;&nbsp;1451190  |
|  | &nbsp;&nbsp;W | &nbsp;&nbsp;104011536  | &nbsp;&nbsp;45466182  | &nbsp;&nbsp;58545354  | &nbsp;&nbsp;45754656  | &nbsp;&nbsp;1000  | &nbsp;&nbsp;12789698  |

---

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**5. <u>Financial risk management (continued)</u>**

**(h) Offsetting financial assets and financial liabilities (continued)**

Financial assets and liabilities subject to offsetting, enforceable master netting arrangements and similar agreements as of December 31, 2025 and 2024 are as follows (continued):

(\*1) The Group has certain derivative transactions subject to the ISDA (International Derivatives Swaps and Dealers Association) agreement. According to the ISDA agreement, when credit events (e.g. default) of counterparties occur, all derivative agreements are terminated and set off. At the time of termination, the parties to the transaction will offset the amount of payment or payment to each other, and one party will pay the other party a single amount will be paid to the other party.

(\*2) Resale and repurchase agreements and securities borrowing and lending agreements are also similar to ISDA agreements with respect to legally enforceable netting arrangements.

(\*3) The Group has legally enforceable right to set off and settles financial assets and liabilities on a net basis under normal business terms. Therefore, domestic exchanges settlement receivables (payables) are recorded on a net basis in the consolidated statements of financial position.

(\*4) It is an account that deals with bonds and liabilities based on the settlement of listed stocks traded in the market. The Group currently has a legally enforceable right to set off the recognized amounts and intends to settle on a net basis. Therefore, the net amount is presented in the consolidated statement of financial position. The offset amount of related bonds and liabilities based on the settlement of over-the-counter derivatives in-house payment by Central Clearing System is included.

(\*5) As of December 31, 2025, the total amount of financial liabilities includes W 6,090,215 million of ELS (equity-linked securities) products and of DLS (derivative linked securities) products. In the

course of this transaction, the Group has provided collateral for some transactions. The financial instruments provided as collateral of W 156,351 million are included in the related instruments not offset

in the statement of financial position.

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**5. <u>Financial risk management (continued)</u>**

**(h) Offsetting financial assets and financial liabilities (continued)**

Financial assets and liabilities subject to offsetting, enforceable master netting arrangements and similar agreements as of December 31, 2025 and 2024 are as follows: (continued)

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
|  |  | &nbsp;&nbsp;**Gross amounts of recognized financial assets/ liabilities** | &nbsp;&nbsp;**Gross amounts of recognized financial assets/ liabilities set off in the statement of financial position** | &nbsp;&nbsp;**Net amounts of financial assets/ liabilities presented in the statement of financial position** | &nbsp;&nbsp;**Related amounts not set off in the statement of financial position** | &nbsp;&nbsp;**Related amounts not set off in the statement of financial position** | &nbsp;&nbsp;**Net amount** |
|  |  | &nbsp;&nbsp;**Gross amounts of recognized financial assets/ liabilities** | &nbsp;&nbsp;**Gross amounts of recognized financial assets/ liabilities set off in the statement of financial position** | &nbsp;&nbsp;**Net amounts of financial assets/ liabilities presented in the statement of financial position** | &nbsp;&nbsp;**Financial**<br>**instruments** | &nbsp;&nbsp;**Cash collateral received** | &nbsp;&nbsp;**Net amount** |
| &nbsp;&nbsp;&nbsp;**Assets:** |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Derivatives (\*1) | &nbsp;&nbsp;W | &nbsp;&nbsp;10560214  | &nbsp;&nbsp;- | &nbsp;&nbsp;10560214  | &nbsp;&nbsp;13744859 | &nbsp;&nbsp;522860 | &nbsp;&nbsp;5592302 |
| &nbsp;&nbsp;Other financial instruments (\*1) |  | &nbsp;&nbsp;9299807  | &nbsp;&nbsp;- | &nbsp;&nbsp;9299807  | &nbsp;&nbsp;13744859 | &nbsp;&nbsp;522860 | &nbsp;&nbsp;5592302 |
| &nbsp;&nbsp;&nbsp;&nbsp;Securities repurchased under repurchase agreements and bonds purchased under repurchase agreements (\*2) |  | &nbsp;&nbsp;17514396 | &nbsp;&nbsp;- | &nbsp;&nbsp;17514396 | &nbsp;&nbsp;15238643 | &nbsp;&nbsp;- | &nbsp;&nbsp;2275753 |
| &nbsp;&nbsp;&nbsp;&nbsp;Securities loaned (\*2) |  | &nbsp;&nbsp;6456316  | &nbsp;&nbsp;- | &nbsp;&nbsp;6456316  | &nbsp;&nbsp;6393972  | &nbsp;&nbsp;- | &nbsp;&nbsp;62344  |
| &nbsp;&nbsp;&nbsp;&nbsp;Domestic exchange settlement debit (\*3) |  | &nbsp;&nbsp;39697639  | &nbsp;&nbsp;34787860  | &nbsp;&nbsp;4909779  | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;4909779  |
| &nbsp;&nbsp;&nbsp;&nbsp;Receivables from disposal of securities (\*4) |  | &nbsp;&nbsp;4879073  | &nbsp;&nbsp;2199610  | &nbsp;&nbsp;2679463  | &nbsp;&nbsp;1925615  | &nbsp;&nbsp;- | &nbsp;&nbsp;753848  |
|  | &nbsp;&nbsp;W | &nbsp;&nbsp;88407445  | &nbsp;&nbsp;36987470  | &nbsp;&nbsp;51419975  | &nbsp;&nbsp;37303089  | &nbsp;&nbsp;522860  | &nbsp;&nbsp;13594026  |
| &nbsp;&nbsp;&nbsp;**Liabilities:** |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Derivatives (\*1), (\*5) | &nbsp;&nbsp;W | &nbsp;&nbsp;18245590  | &nbsp;&nbsp;- | &nbsp;&nbsp;18245590  | &nbsp;&nbsp;14692837 | &nbsp;&nbsp;1000 | &nbsp;&nbsp;11767096 |
| &nbsp;&nbsp;Other financial instruments (\*1) |  | &nbsp;&nbsp;8215343  | &nbsp;&nbsp;- | &nbsp;&nbsp;8215343  | &nbsp;&nbsp;14692837 | &nbsp;&nbsp;1000 | &nbsp;&nbsp;11767096 |
| &nbsp;&nbsp;&nbsp;&nbsp;Bonds sold under repurchase agreements (\*2) |  | &nbsp;&nbsp;11542956  | &nbsp;&nbsp;- | &nbsp;&nbsp;11542956  | &nbsp;&nbsp;10667259  | &nbsp;&nbsp;- | &nbsp;&nbsp;875697  |
| &nbsp;&nbsp;&nbsp;&nbsp;Securities borrowed (\*2) |  | &nbsp;&nbsp;357842  | &nbsp;&nbsp;- | &nbsp;&nbsp;357842  | &nbsp;&nbsp;357842  | &nbsp;&nbsp;- | &nbsp;&nbsp;- |
| &nbsp;&nbsp;&nbsp;&nbsp;Domestic exchange settlement pending (\*3) |  | &nbsp;&nbsp;36593966  | &nbsp;&nbsp;34787860  | &nbsp;&nbsp;1806106  | &nbsp;&nbsp;1735983  | &nbsp;&nbsp;- | &nbsp;&nbsp;70123  |
| &nbsp;&nbsp;&nbsp;&nbsp;Payable from purchase of securities (\*4) |  | &nbsp;&nbsp;4868572  | &nbsp;&nbsp;2199610  | &nbsp;&nbsp;2668962  | &nbsp;&nbsp;1926038  | &nbsp;&nbsp;- | &nbsp;&nbsp;742924  |
|  | &nbsp;&nbsp;W | &nbsp;&nbsp;79824269  | &nbsp;&nbsp;36987470  | &nbsp;&nbsp;42836799  | &nbsp;&nbsp;29379959  | &nbsp;&nbsp;1000  | &nbsp;&nbsp;13455840  |

---

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**5. <u>Financial risk management (continued)</u>**

**(h) Offsetting financial assets and financial liabilities (continued)**

Financial assets and liabilities subject to offsetting, enforceable master netting arrangements and similar agreements as of December 31, 2025 and 2024 are as follows (continued):

(\*1) The Group has certain derivative transactions subject to the ISDA (International Derivatives Swaps and Dealers Association) agreement. According to the ISDA agreement, when credit events (e.g. default) of counterparties occur, all derivative agreements are terminated and set off. At the time of termination, the parties to the transaction will offset the amount of payment or payment to each other, and one party will pay the other party a single amount will be paid to the other party.

(\*2) Resale and repurchase agreements and securities borrowing and lending agreements are also similar to ISDA agreements with respect to legally enforceable netting arrangements.

For securities lending transactions executed through intermediaries, such as the Korea Securities Depository and the Korea Securities Finance Corporation (i.e., competitive transactions), collateral is pledged in the name of the intermediary. Accordingly, direct netting agreements and the enforceability of collateral between the transaction counterparties do not apply.

In this regard, the amount of securities lent for which a pledge has been established in the name of the intermediary amounted to W 5,186,364 million as of December 31, 2024.

(\*3) The Group has legally enforceable right to set off and settles financial assets and liabilities on a net basis under normal business terms. Therefore, domestic exchanges settlement receivables (payables) are recorded on a net basis in the consolidated statements of financial position.

(\*4) It is an account that deals with bonds and liabilities based on the settlement of listed stocks traded in the market. The Group currently has a legally enforceable right to set off the recognized amounts and intends to settle on a net basis. Therefore, the net amount is presented in the consolidated statement of financial position. The offset amount of related bonds and liabilities based on the settlement of over-the-counter derivatives in-house payment by Central Clearing System is included.

(\*5) As of December 31, 2024, the total amount of financial liabilities includes W 7,966,828 million of ELS (equity-linked securities) products and of DLS (derivative linked securities) products. In the

course of this transaction, the Group has provided collateral for some transactions. The financial instruments provided as collateral of W 586,768 million are included in the related instruments not offset

in the statement of financial position.

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**5. <u>Financial risk management (continued)</u>**

**(i) Capital risk management**

The Group is required, in accordance with the Financial Holding Companies Act, to maintain a total capital ratio based on consolidated risk-weighted assets of at least 8% (hereinafter referred to as the "Basel III capital ratio"). In addition, following the implementation of enhanced Basel III capital regulations from 2016, the required BIS capital ratio to be maintained in order to strengthen loss-absorbing capacity has been increased to a maximum of 14%. This requirement reflects the minimum regulatory ratio plus the additional accumulation of a capital conservation buffer (2.5%p), a domestic systemically important bank ("D-SIB") buffer (1.0%p), and a countercyclical capital buffer (2.5%p). The countercyclical capital buffer may be imposed up to a maximum of 2.5%p during periods of excessive credit growth. In Korea, the countercyclical capital buffer requirement was increased from 0%p to 1%p effective May 1, 2024. Accordingly, as of December 31, 2025, the BIS capital ratio additionally required to enhance loss-absorbing capacity is 12.5%, which reflects the application of the capital conservation buffer (2.5%p), the D-SIB buffer (1.0%p), and the countercyclical capital buffer (1.0%p).

The Basel III capital ratio refers to an internationally harmonized standard for capital adequacy regulation established under the "International Convergence of Capital Measurement and Capital Standards" issued by the Basel Committee on Banking Supervision of the Bank for International Settlements ("BIS"). The ratio is calculated as:

(Common Equity Tier 1 capital (net of regulatory deductions) + Additional Tier 1 capital + Tier 2 capital) ÷ Risk-weighted assets

Common Equity Tier 1 capital is the first line of capital available to absorb losses of a financial holding company and ranks last in priority upon liquidation. It is not redeemable prior to liquidation and consists of capital stock, capital surplus, retained earnings, and other components. Additional Tier 1 capital consists of perpetual capital instruments that meet certain regulatory requirements. Tier 2 capital consists of capital instruments that are available to absorb losses upon liquidation, subject to specific regulatory criteria. Regulatory deduction items are assets or capital items held by the Group that do not contribute to loss-absorbing capacity and, unless otherwise specified, are deducted from Common Equity Tier 1 capital.

The Basel III capital ratios of the Group as of December 31, 2025 and 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**December 31, 2025** | **December 31, 2024** |
| Capital:  |  |  |  |
| Common Equity Tier 1 capital | W | 47115338 | 44562500  |
| Additional tier 1 capital |  | 5890967 | 5824082  |
| Total Tier I capital |  | 53006305 | 50386582  |
| Tier II capital |  | 3254292 | 3516787  |
| Total capital (A) | W | 56260597 | 53903369  |
| &nbsp;&nbsp;Total risk-weighted assets (B) | W | 352907638 | 342375264  |
| Total capital ratio (A/B) |  | 15.94% | 15.74%  |
| Tier 1 capital ratio |  | 15.02% | 14.72%  |
| Common Equity Tier 1 capital ratio |  | 13.35% | 13.02%  |

---

(\*) As of December 31, 2025, the Group maintains an appropriate capital adequacy ratio in accordance with the BIS capital regulation system and the capital ratios as of that date are provisional.

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**6. <u>Insurance Risk</u>**

(a) Overview of the insurance risk – Shinhan Life Insurance Co., Ltd.

*i) Overview of the insurance risk*

*i-1) Insurance risk*

Insurance risk is the likelihood that insured events occur and the uncertainty of the total amount and timing of claims for the insured events occurred. The main risk covered by insurance contracts is the risk that the actual claim or benefit payment will exceed the accumulated insurance liability. This risk can occur for the following reasons:

① Frequency risk: a possibility that the number of occurrences of the insured event is different from the expected number

② Severity risk: a possibility that the cost of an incident may be different from the expected cost level

By experience, when there is more similar insurance or they are more diversified, the less likely it is that abnormal effects from some contracts will occur. Shinhan Life Insurance Co., Ltd. takes this into account when underwriting contracts and strives to form a sufficiently large and diversified group of contracts.

Insurance risk includes a lack of risk diversification and relates to geographical location and the nature of the policyholder as well as to the diversification of risk forms or sizes.

If the insurance contract covers death, a catastrophe affects the frequency the most and can affect the frequency of death earlier than expected due to a wide range of causes such as eating habits, smoking, and exercise habits, etc. And if the coverage is survival, medical technology and social conditions can increase the survival rate. The frequency may also be affected by excessive concentration in residential areas of policy holders.

Insurance accidents in life insurance include not only the death of the policyholder (insured) but also their survival, disability, and hospitalization.

Shinhan Life Insurance Co., Ltd. basically classifies its insurance products into individual insurance and group insurance according to the policyholder. Group insurance means a contract under which the insured belongs to a group of a certain size or larger and in which the policyholder is the representative of the group or organization. Group insurance can be divided into savings and protections. Protection insurance means insurance in which the sum of benefits paid for survival at the base age does not exceed the premium already paid; savings insurance is defined as insurance, except for protection insurance, in which the sum of benefits paid for survival exceeds the premium already paid. Individual insurance can be classified into death insurance in which the insured's death is insured, survival insurance in which the life is insured for a certain period of time, and endowment insurance in which life insurance and survival insurance are mixed.

Life insurance products can also be divided into guaranteed fixed rates, floating rates, interest accreted rate linked , and variable types by the applying term structures of interest types.

In the guaranteed fixed interest type, since the expected rate does not change from the time the policyholder enters into the contract to the end of the insurance period, Shinhan Life Insurance Co., Ltd. assumes the interest rate risk if the asset management return rate or market interest rate is lower than the expected rate. Floating interest rate type divides the net insurance premium into the guaranteed portion and the reserve portion; the guaranteed portion is applied with the predetermined expected rate, and the reserve portion changes based on the reserve rate for policy reserve according to asset management return rate, which makes partial hedge to interest rate risk, but Shinhan Life Insurance Co., Ltd. assumes some interest rate risk from the changes of asset management return rate, etc. since the minimum reserve rate for policy reserve is predetermined.

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**6. <u>Insurance Risk (continued)</u>**

(a) Overview of the insurance risk – Shinhan Life Insurance Co., Ltd. (continued)

*i) Overview of the insurance risk (continued)*

*i-1) Insurance risk and reinsurance (continued)*

Shinhan Life Insurance Co., Ltd. uses acquisition strategies and reinsurance strategies to manage insurance risk of uncertainties of the total amount and timing of insurance claims paid due to insured events.

1Acceptance strategy

Acceptance strategy means diversifying the type of risk or the level of claims from that are accepted insurance policies. For example, Shinhan Life Insurance Co., Ltd. can balance mortality and survival risks. In addition, the selection of policyholders through regular health check-ups is one of the major acceptance strategies.

2Reinsurance strategy

The risk of reinsurance contracts held to Shinhan Life Insurance Co., Ltd. is based on the accepted insurance contracts, which can be the total amount of risk or risk per contract on a per capita basis or per contract basis. In principle, the reinsurance method provides the risk premium excess reinsurance, but other methods may be used within the scope of the relevant laws as required. The degree of reinsurance held by Shinhan Life Insurance Co., Ltd. shall be determined by considering its assets, contract conditions, risk level, and technology for selecting the contract.

Insurance risk can also be affected by the policyholder's right to terminate the contract or exercise annuity conversion rights to reduce or not pay the full premium. As a result, insurance risks may be affected by the policyholder's actions and decisions. Shinhan Life Insurance Co., Ltd.'s insurance risk can be estimated on the assumption that the policyholder is reasonable. For example, a person who is worse than a person in good health would have less intention of terminating insurance that covers death. These factors are also reflected in the assumptions about Shinhan Life Insurance Co., Ltd.'s insurance liabilities.

*ii) Insurance risk management policy*

*ii -1) Measurement of Insurance Risk*

Unlike other financial instruments, life insurance companies' insurance policies have the characteristics of long-term contracts, which can be exposed to insurance risk that may arise due to an increase in actual claim payments than the risk rate determined at the time of development of the product and interest rate risk that may arise due to differences in interest rates and maturities between insurance liabilities and asset management.

The purpose of Shinhan Life Insurance Co., Ltd.'s risk management is to generate long-term stable growth and profits by proactively preventing and systematically managing the various risks that may arise in the course of management activities, reflecting these uncertain financial environments and the characteristics of life insurance products with long-term attributes.

Shinhan Life Insurance Co., Ltd. divides insurance risks arising from life insurance contracts into six sub-risks: death risk, longevity risk, disability and illness risk, cancellation risk, operating expense risk, and catastrophe risk. The risk amount for each sub-risk is measured on assets and liabilities that may directly or indirectly cause loss to Shinhan Life Insurance Co., Ltd. in the event of changes in actuarial assumptions, and is calculated based on the net asset value through the shock scenario method or risk coefficient method for each sub-risk.

The shock scenario method, one of the insurance risk measurement methods, is a method of calculating the amount of change in net asset value when applying a scenario in which the basic assumptions used for market valuation of assets or liabilities change. On the other hand, the risk coefficient method is a method that calculates the amount by multiplying a specific exposure by a specified risk coefficient, and is suitable for risk amounts that have short maturity or do not have large changes in net asset value during market valuation.

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**6. <u>Insurance Risk (continued)</u>**

(a) Overview of the insurance risk – Shinhan Life Insurance Co., Ltd. (continued)

*ii) Insurance risk management policy (continued)*

*ii -1) Measurement of Insurance Risk (continued)*

In addition, Shinhan Life Insurance Co., Ltd. calculates the life insurance risk amount considering the diversification effect by adding the risk amount calculated for each sub-risk, reflecting the correlation coefficient between the sub-risks.

*ii -2) Insurance risk management organization and management method*

Shinhan Life Insurance Co., Ltd. measures the statutory minimum level of capital based on the life insurance risk amount and manages it within the allowable range. For this purpose, Shinhan Life Insurance Co., Ltd. establishes basic principles of risk management and establishes and implements regulations and management systems to implement them. In addition, Shinhan Life Insurance Co., Ltd. supports decision-making related to various risks through the Risk Management Committee and risk management organization, and prepare risk management procedures to identify and manage risks in a timely manner.

In general, risk management procedures are to recognize exposed risks, measure their size, set acceptable limits, monitor them regularly to report to management, and efficiently control and manage risks in case they exceed their limits.

Management methods by risk type are as follows:

-Insurance risk management

Shinhan Life Insurance Co., Ltd. develops insurance products with proper profitability by setting the profitability guidelines from the time of product development, establishes and operates the acceptance policy to prevent reverse selection, running the claim-screening policy to make claim payments.

- Interest rate risk management

Shinhan Life Insurance Co., Ltd. establishes a guideline and consider the market interest rate and asset management return rate to determine the published interest rate and expected interest rate within the guidelines. Shinhan Life Insurance Co., Ltd. also establishes the asset management strategy considering the interest rate level and maturity of liabilities; establishes a long-term target portfolio by comprehensively considering the risk level and rate of return of operating assets after analyzing the properties of long-term insurance liabilities, and sets a viable portfolio as a guideline every year to allocate and manage assets.

- Liquidity risk management

Shinhan Life Insurance Co., Ltd. reviews and manages the amount of claims paid insurance and liquid assets periodically.

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**6. <u>Insurance Risk (continued)</u>**

(a) Overview of the insurance risk – Shinhan Life Insurance Co., Ltd. (continued)

*iii) Korean Insurance Capital Standard(K-ICS)*

K-ICS is an equity capital system that precisely evaluates risk and financial soundness by evaluating the assets and liabilities of insurance companies to market so that they can be applied under the financial statements prepared in accordance with K-IFRS 1117 on insurance contracts. To maintain consistency in mark-to-market valuation and ensure consistency with international capital regulations, the supervisory authorities introduced K-ICS based on mark-to-market valuation, which improves the quality of insurance companies' capital by calculating available and required capital in line with economic substance. This is a system designed to encourage improvement and strengthen risk management.

With the introduction of K-ICS, the supervisory authorities have established standards for preparing a financial position statement based on soundness supervision standards to separately calculate assets and liabilities that meet the purpose of supervision and at the same time substantially reflect the risks of insurance companies. In the K-ICS, the available capital, or solvency amount, is measured based on the basic capital and supplementary capital classified by the loss absorption capacity of the net asset amount in the statement of financial position based on soundness supervision standards evaluated at market price, and there are some restrictions on loss compensation. Supplementary capital, defined as having, can be reflected in the solvency amount up to 50% of the required capital. In addition, the required capital under the K-ICS, that is, the solvency standard amount, refers to the amount of potential losses that may occur in the insurance company over the next year. Specifically, the K-ICS divides the risks exposed due to insurance contract underwriting and asset management into five risks: life and long-term non-life insurance risk, general non-life insurance risk, market risk, credit risk, and operational risk. Under the 99.5% confidence level, the solvency standard amount is required to be measured by calculating the maximum loss that can occur over the next year using the shock scenario method.

Under the K-ICS, the solvency ratio is calculated by dividing the solvency amount by the solvency standard amount. If the insurance company's solvency ratio is less than 100%, it indicates that the solvency standard amount measured by the potential loss amount cannot be covered with capital, which means that the insurance company's capital soundness has become poor, and the supervisory authority must comply with the Regulations on Supervision of Insurance Business. Accordingly, insurance companies with a solvency ratio of less than 100% are required to take timely corrective actions such as management improvement recommendations, management improvement requests, or management improvement orders. As such, the new solvency system is a system in which the supervisory authorities seek to protect policyholders by supervising the capital adequacy and risk management capabilities of insurance companies.

*iv) Financial risks related to insurance contracts*

Investment contracts that include insurance contracts and discretionary participation feature may be exposed to financial risks although it is an insurance liability, and the form of exposure is as follows:

*iv-1) Credit risk*

Credit risk refers to the risk of loss resulting from the borrower's failure to repay a loan or meet contractual obligations. Shinhan Life Insurance Co., Ltd.'s reinsurance assets are exposed to credit risk as assets that may incur losses if the reinsurer defaults at the time of receipt of the claims and receivables.

*iv-2) Interest rate risk*

Interest rate risk means the risk that arises when Shinhan Life Insurance Co., Ltd.'s financial position fluctuates unfavorably due to the effect of interest rates on assets and liabilities. Shinhan Life Insurance Co., Ltd. manages matched assets and liabilities for each portfolio to minimize the impact of mismatches between assets and liabilities caused by interest rate fluctuations, thus reducing the risk.

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**6. <u>Insurance Risk (continued)</u>**

(a) Overview of the insurance risk – Shinhan Life Insurance Co., Ltd. (continued)

*iv) Financial risks related to insurance contracts (continued)*

*iv-3) Liquidity risk*

Liquidity risk refers to the risk that assets and liabilities are subject to inconsistency or failure to respond to unexpected cash outflows. Therefore, future cash outflows from investment contracts, including insurance liabilities which account for most of Shinhan Life Insurance Co., Ltd.'s liabilities and discretionary participation features, are factors used to determine the level of risk associated with Shinhan Life Insurance Co., Ltd.'s liquidity.

The purpose of Shinhan Life Insurance Co., Ltd.'s management of liquidity risk is to maintain sufficient liquidity to prepare for repayments arising from insurance contracts under normal circumstances or when market shocks occur. Shinhan Life Insurance Co., Ltd.'s main liquidity risk management methods are as follows:

- Regularly inspect and manage the amount of insurance payments and liquid assets

- Maintain and manage a portfolio comprised of assets that can be relatively easily liquidated in preparation for unexpected disruptions in financing.

- Monitoring liquidity ratios by running liquidity stress tests

- Establishment of asset liability management strategy considering insurance contract liability cash flow

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**6. <u>Insurance Risk (continued)</u>**

(a) Overview of the insurance risk – Shinhan Life Insurance Co., Ltd. (continued)

*iv) Financial risks related to insurance contracts (continued)*

*iv-4) Market risk*

Market risk refers to the risk of loss arising when Shinhan Life Insurance Co., Ltd.'s financial position fluctuates unfavorably due to adverse price fluctuations such as stock prices and exchange rates. Shinhan Life Insurance Co., Ltd. carries out insurance contract transactions denominated in foreign currencies and is therefore exposed to exchange rate fluctuations. Exposure to exchange rate fluctuations is managed through foreign exchange forward contracts and interest rate swaps between different currencies.

*v) Concentration of Insurance Risk*

*v-1) The concentration of insurance risks by region as of December 31, 2025 and December 31, 2024 are as follows:*

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  |  | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** |
|  |  | **Insurance contracts** | **Insurance contracts** | **Insurance contracts** | **Reinsurance contracts** | **Total** |
|  |  | **Participating**  | **Non-participating**  | **Variable**  | **Reinsurance contracts** | **Total** |
| Domestic | W | 4959061  | 29808665  | 5591163  | 53048  | 40411937  |
| International |  | - | (849) | - | - | (849) |
|  | &nbsp;&nbsp;W | &nbsp;&nbsp;4959061  | &nbsp;&nbsp;29807816  | &nbsp;&nbsp;5591163  | &nbsp;&nbsp;53048  | &nbsp;&nbsp;40411088  |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  |  | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
|  |  | **Insurance contracts** | **Insurance contracts** | **Insurance contracts** | **Reinsurance contracts** | **Total** |
|  |  | **Participating**  | **Non-participating**  | **Variable**  | **Reinsurance contracts** | **Total** |
| Domestic | W | 5200167  | 31160425  | 4834945  | 345177  | 41540714  |
| International |  | - | (1341) | - | - | (1341) |
|  | &nbsp;&nbsp;W | &nbsp;&nbsp;5200167  | &nbsp;&nbsp;31159084  | &nbsp;&nbsp;4834945  | &nbsp;&nbsp;345177  | &nbsp;&nbsp;41539373  |

---

*v-2) The amount of currency insurance liabilities (based on the fulfilment cash flows) as of December 31, 2025 and December 31, 2024 are as follows:*

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **December 31, 2025** | **December 31, 2025** | **December 31, 2024** | **December 31, 2024** |
|  | **Foreign currency amount** | **KRW converted amount** | **Foreign currency amount** | **KRW converted amount** |
| Foreign currency insurance contract liabilities: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;USD (thousand) | 279946  | 401695  | 168209  | 247267 |
| &nbsp;&nbsp;&nbsp;&nbsp;EUR (thousand) | 110  | 185  | 119  | 182 |
| &nbsp;&nbsp;&nbsp;&nbsp;VND (million) | &nbsp;&nbsp;(15540) | (849) | &nbsp;&nbsp;(23242)  | (1341) |
|  |  | 401031  |  | 246108 |

---

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SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**6. <u>Insurance Risk (continued)</u>**

(a) Overview of the insurance risk – Shinhan Life Insurance Co., Ltd. (continued)

*vi) Sensitivity to Insurance Risk*

The impacts of changes in key assumptions on insurance contract liabilities (assets) as of December 31, 2025 and 2024 are as follows:

*vi -1) Participating insurance contracts*

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  |  |  | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** |
|  |  |  | **Base amount and base amount after change** | **Base amount and base amount after change** | **Profit and capital impact (before tax)** | **Profit and capital impact (before tax)** |
|  | **Sensitivity (\*2)** |  | **Fulfilment cash flows (\*3)** | **Contractual service margin** | **Profit (loss) (\*4)** | **Other comprehensive income** |
| Base amount |  | W | 4738480  | 130865  | - | - |
| Mortality rate | Increased by 3.27% |  | &nbsp;&nbsp;4732654  | 127293  | 9398  | (1887) |
| Disability and illness (fixed compensation) | Increased by 3.40% |  | &nbsp;&nbsp;4742230 | 126951  | 165  | 115  |
| Disability and illness (actual loss compensation) | &nbsp;&nbsp;Increased by<br>2.62% |  | &nbsp;&nbsp;4742230 | 126951  | 165  | 115  |
| Long-term property and other | &nbsp;&nbsp;Increased by<br>4.19% |  | &nbsp;&nbsp;4738480  | 130865  | &nbsp;&nbsp;- | - |
| lapse rate (increase) | &nbsp;&nbsp;Increased by<br>9.16% |  | &nbsp;&nbsp;4726618  | 130294  | &nbsp;&nbsp;12433  | (6606) |
| lapse rate (decrease) | &nbsp;&nbsp;Decreased by 9.16% |  | &nbsp;&nbsp;4750500  | 131545  | &nbsp;&nbsp;(12700) | 6861  |
| Operating expense (level) | &nbsp;&nbsp;Increased by<br>2.62% |  | &nbsp;&nbsp;4743228  | 128161  | &nbsp;&nbsp;(2044) | 611  |
| Operating expense (inflation) | &nbsp;&nbsp;Increased by<br>0.26%p |  | &nbsp;&nbsp;4743228  | 128161  | &nbsp;&nbsp;(2044) | 611  |

---

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**6. <u>Insurance Risk (continued)</u>**

(a) Overview of the insurance risk – Shinhan Life Insurance Co., Ltd. (continued)

*vi) Sensitivity to Insurance Risk (continued)*

The impacts of changes in major assumptions on insurance contract liabilities (assets) as of December 31, 2025 and December 31, 2024 are as follows (continued):

*vi -1) Participating insurance contracts (continued)*

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  |  |  | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
|  |  |  | **Base amount and base amount after change** | **Base amount and base amount after change** | **Profit and capital impact (before tax)** | **Profit and capital impact (before tax)** |
|  | **Sensitivity (\*2)** |  | **Fulfilment cash flows (\*3)** | **Contractual service margin** | **Profit (loss) (\*4)** | **Other comprehensive income** |
| Base amount |  | W | 4979280  | 118533  | - | - |
| Mortality rate | Increased by 3.27% |  | &nbsp;&nbsp;4974196  | 114164  | 9453  | (1895) |
| Disability and illness (fixed compensation) | Increased by 3.40% |  | &nbsp;&nbsp; <br>4984691  | <br>113928  | <br>(806) | <br>124  |
| Disability and illness (actual loss compensation) | &nbsp;&nbsp;Increased by<br>2.62% |  | &nbsp;&nbsp; <br>4984691  | <br>113928  | <br>(806) | <br>124  |
| Long-term property and other | &nbsp;&nbsp;Increased by<br>4.19% |  | &nbsp;&nbsp;4979280  | 118533  | &nbsp;&nbsp;- | - |
| lapse rate (increase) | &nbsp;&nbsp;Increased by<br>9.16% |  | &nbsp;&nbsp;4963981  | 120301  | &nbsp;&nbsp;13532  | (5710) |
| lapse rate (decrease) | &nbsp;&nbsp;Decreased by 9.16% |  | &nbsp;&nbsp;4994968  | 116666  | &nbsp;&nbsp;(13820) | 5949  |
| Operating expense (level) | &nbsp;&nbsp;Increased by<br>2.62% |  | &nbsp;&nbsp;4984797  | 115214  | &nbsp;&nbsp;(2197) | 484  |
| Operating expense (inflation) | &nbsp;&nbsp;Increased by<br>0.26%p |  | &nbsp;&nbsp;4984797  | 115214  | &nbsp;&nbsp;(2197) | 484  |

---

(\*1) This amount is presented before reflecting the effects of reinsurance.

(\*2) The risk adjustment is calculated at the 75% confidence level.

(\*3) The risk adjustment included in the fulfilment cash flows was calculated without shock.

(\*4) The profit (loss) for the year consists of (i) an increase in the present value estimate of future cash flows that exceeds the carrying amount of the contractual service margin, resulting in a loss due to changes in assumptions, and (ii) changes in the present value estimate of future cash flows allocated to the loss component, which also result from changes in assumptions.

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**6. <u>Insurance Risk (continued)</u>**

(a) Overview of the insurance risk – Shinhan Life Insurance Co., Ltd. (continued)

*vi) Sensitivity to Insurance Risk (continued)*

The impacts of changes in major assumptions on insurance contract liabilities (assets) as of December 31, 2025 and December 31, 2024 are as follows (continued):

*vi -2) Non-participating insurance contracts* 

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  |  |  | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** |
|  |  |  | **Base amount and base amount after change** | **Base amount and base amount after change** | **Profit and capital impact (before tax)** | **Profit and capital impact (before tax)** |
|  | **Sensitivity (\*2)** |  | **Fulfilment cash flows (\*3)** | **Contractual service margin** | **Profit (loss) (\*4)** | **Other comprehensive income** |
| Base amount |  | W | 28288556  | 7199651  | - | - |
| Mortality rate | Increased by 3.27% |  | &nbsp;&nbsp;28406579  | 7081232  | 397  | (2440) |
| Disability and illness (fixed compensation) | Increased by 3.40% |  | &nbsp;&nbsp;29032742  | 6553779  | (98314) | 41408  |
| Disability and illness (actual loss compensation) | &nbsp;&nbsp;Increased by<br>2.62% |  | &nbsp;&nbsp;29032742  | 6553779  | (98314) | 41408  |
| Long-term property and other | &nbsp;&nbsp;Increased by<br>4.19% |  | &nbsp;&nbsp;28288556  | 7199651  | &nbsp;&nbsp;- | - |
| lapse rate (increase) | &nbsp;&nbsp;Increased by<br>9.16% |  | &nbsp;&nbsp;29032371  | 6475155  | &nbsp;&nbsp;(19318) | (78503) |
| lapse rate (decrease) | &nbsp;&nbsp;Decreased by 9.16% |  | &nbsp;&nbsp;27470393  | 8000387  | &nbsp;&nbsp;17427  | 82187  |
| Operating expense (level) | &nbsp;&nbsp;Increased by<br>2.62% |  | &nbsp;&nbsp;28487259  | 7007703  | &nbsp;&nbsp;(6755) | 15146  |
| Operating expense (inflation) | &nbsp;&nbsp;Increased by<br>0.26%p |  | &nbsp;&nbsp;28487259  | 7007703  | &nbsp;&nbsp;(6755) | 15146  |

---

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**6. <u>Insurance Risk (continued)</u>**

(a) Overview of the insurance risk – Shinhan Life Insurance Co., Ltd. (continued)

*vi) Sensitivity to Insurance Risk (continued)*

The impacts of changes in major assumptions on insurance contract liabilities (assets) as of December 31, 2025 and December 31, 2024 are as follows (continued):

*vi -2) Non-participating insurance contracts (continued)*

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  |  |  | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
|  |  |  | **Base amount and base amount after change** | **Base amount and base amount after change** | **Profit and capital impact (before tax)** | **Profit and capital impact (before tax)** |
|  | **Sensitivity (\*2)** |  | **Fulfilment cash flows (\*3)** | **Contractual service margin** | **Profit (loss) (\*4)** | **Other comprehensive income** |
| Base amount |  | W | 29627853  | 6969672  | - | - |
| Mortality rate | Increased by 3.27% |  | &nbsp;&nbsp;29749337  | 6848600  | (411) | (9443) |
| Disability and illness (fixed compensation) | Increased by 3.40% |  | &nbsp;&nbsp;30300967  | 6324390  | (27831) | 14386  |
| Disability and illness (actual loss compensation) | &nbsp;&nbsp;Increased by<br>2.62% |  | &nbsp;&nbsp;30300967  | 6324390  | (27831) | 14386  |
| Long-term property and other | &nbsp;&nbsp;Increased by<br>4.19% |  | &nbsp;&nbsp;29627853  | 6969672  | &nbsp;&nbsp;- | - |
| lapse rate (increase) | &nbsp;&nbsp;Increased by<br>9.16% |  | &nbsp;&nbsp;30338377  | 6275939  | &nbsp;&nbsp;(16791) | (89404) |
| lapse rate (decrease) | &nbsp;&nbsp;Decreased by 9.16% |  | &nbsp;&nbsp;28845362  | 7734641  | &nbsp;&nbsp;17522  | 98708  |
| Operating expense (level) | &nbsp;&nbsp;Increased by<br>2.62% |  | &nbsp;&nbsp;29820711  | 6782260  | &nbsp;&nbsp;(5446) | 8158  |
| Operating expense (inflation) | &nbsp;&nbsp;Increased by<br>0.26%p |  | &nbsp;&nbsp;29820711  | 6782260  | &nbsp;&nbsp;(5446) | 8158  |

---

(\*1) This amount is presented before reflecting the effects of reinsurance.

(\*2) The risk adjustment is calculated at the 75% confidence level.

(\*3) The risk adjustment included in the fulfilment cash flows was calculated without shock.

(\*4) The profit (loss) for the year consists of (i) an increase in the present value estimate of future cash flows that exceeds the carrying amount of the contractual service margin, resulting in a loss due to changes in assumptions, and (ii) changes in the present value estimate of future cash flows allocated to the loss component, which also result from changes in assumptions.

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**6. <u>Insurance Risk (continued)</u>**

(a) Overview of the insurance risk – Shinhan Life Insurance Co., Ltd. (continued)

*vi) Sensitivity to Insurance Risk (continued)*

The impacts of changes in major assumptions on insurance contract liabilities (assets) as of December 31, 2025 and December 31, 2024 are as follows (continued):

*vi -3) Variable insurance contracts* 

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  |  |  | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** |
|  |  |  | **Base amount and base amount after change** | **Base amount and base amount after change** | **Profit and capital impact (before tax)** | **Profit and capital impact (before tax)** |
|  | **Sensitivity (\*2)** |  | **Fulfilment cash flows (\*3)** | **Contractual service margin** | **Profit (loss) (\*4)** | **Other comprehensive income** |
| Base amount |  | W | 5528259  | 223218  | - | - |
| Mortality rate | Increased by 3.27% |  | &nbsp;&nbsp;5542000  | 218227  | (8750) | 2058  |
| Disability and illness (fixed compensation) | Increased by 3.40% |  | &nbsp;&nbsp;5553328  | 218469  | (20320) | 2632  |
| Disability and illness (actual loss compensation) | &nbsp;&nbsp;Increased by<br>2.62% |  | &nbsp;&nbsp;5553328  | 218469  | (20320) | 2632  |
| Long-term property and other | &nbsp;&nbsp;Increased by<br>4.19% |  | &nbsp;&nbsp;5528259  | 223218  | &nbsp;&nbsp;- | - |
| lapse rate (increase) | &nbsp;&nbsp;Increased by<br>9.16% |  | &nbsp;&nbsp;5585976  | 190331  | &nbsp;&nbsp;(24830) | (9064) |
| lapse rate (decrease) | &nbsp;&nbsp;Decreased by 9.16% |  | &nbsp;&nbsp;5464450  | 278118  | &nbsp;&nbsp;8909  | 9826  |
| Operating expense (level) | &nbsp;&nbsp;Increased by<br>2.62% |  | &nbsp;&nbsp;5541523  | 216204  | &nbsp;&nbsp;(6250) | 1203  |
| Operating expense (inflation) | &nbsp;&nbsp;Increased by<br>0.26%p |  | &nbsp;&nbsp;5541523  | 216204  | &nbsp;&nbsp;(6250) | 1203  |

---

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**6. <u>Insurance Risk (continued)</u>**

(a) Overview of the insurance risk – Shinhan Life Insurance Co., Ltd. (continued)

*vi) Sensitivity to Insurance Risk (continued)*

The impacts of changes in major assumptions on insurance contract liabilities (assets) as of December 31, 2025 and December 31, 2024 are as follows (continued):

*vi -3) Variable insurance contracts (continued)*

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  |  |  | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
|  |  |  | **Base amount and base amount after change** | **Base amount and base amount after change** | **Profit and capital impact (before tax)** | **Profit and capital impact (before tax)** |
|  | **Sensitivity (\*2)** |  | **Fulfilment cash flows (\*3)** | **Contractual service margin** | **Profit (loss) (\*4)** | **Other comprehensive income** |
| Base amount |  | W | 4773118  | 135908  | - | - |
| Mortality rate | Increased by 3.27% |  | &nbsp;&nbsp;4788129  | 128304  | (7407) | 1386  |
| Disability and illness (fixed compensation) | Increased by 3.40% |  | &nbsp;&nbsp;4797541  | 129336  | (17851) | 1666  |
| Disability and illness (actual loss compensation) | &nbsp;&nbsp;Increased by<br>2.62% |  | &nbsp;&nbsp;4797541  | 129336  | (17851) | 1666  |
| Long-term property and other | &nbsp;&nbsp;Increased by<br>4.19% |  | &nbsp;&nbsp;4773118  | 135908  | &nbsp;&nbsp;- | - |
| lapse rate (increase) | &nbsp;&nbsp;Increased by<br>9.16% |  | &nbsp;&nbsp;4824350  | 106919  | &nbsp;&nbsp;(22243) | (9536) |
| lapse rate (decrease) | &nbsp;&nbsp;Decreased by 9.16% |  | &nbsp;&nbsp;4716553  | 190190  | &nbsp;&nbsp;2282  | 10428  |
| Operating expense (level) | &nbsp;&nbsp;Increased by<br>2.62% |  | &nbsp;&nbsp;4786747  | 127067  | &nbsp;&nbsp;(4787) | 981  |
| Operating expense (inflation) | &nbsp;&nbsp;Increased by<br>0.26%p |  | &nbsp;&nbsp;4786747  | 127067  | &nbsp;&nbsp;(4787) | 981  |

---

(\*1) This amount is presented before reflecting the effects of reinsurance.

(\*2) The risk adjustment is calculated at the 75% confidence level.

(\*3) The risk adjustment included in the fulfilment cash flows was calculated without shock.

(\*4) The profit (loss) for the year consists of (i) an increase in the present value estimate of future cash flows that exceeds the carrying amount of the contractual service margin, resulting in a loss due to changes in assumptions, and (ii) changes in the present value estimate of future cash flows allocated to the loss component, which also result from changes in assumptions.

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**6. <u>Insurance Risk (continued)</u>**

(a) Overview of the insurance risk – Shinhan Life Insurance Co., Ltd. (continued)

*vi) Sensitivity to Insurance Risk (continued)*

The impacts of changes in major assumptions on insurance contract liabilities (assets) as of December 31, 2025 and December 31, 2024 are as follows (continued):

*vi -4) After reflecting the effects of reinsurance*

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  |  |  | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** |
|  |  |  | **Base amount and base amount after change** | **Base amount and base amount after change** | **Profit and capital impact (before tax)** | **Profit and capital impact (before tax)** |
|  | **Sensitivity (\*2)** |  | **Fulfilment cash flows (\*3)** | **Contractual service margin** | **Profit (loss) (\*4)** | **Other comprehensive income** |
| Base amount |  | W | 38727725  | 7062840  | - | - |
| Mortality rate | Increased by 3.27% |  | &nbsp;&nbsp;38845670  | 6943850  | 1045  | (2160) |
| Disability and illness (fixed compensation) | Increased by 3.40% |  | &nbsp;&nbsp;39445049  | 6463985  | (118469) | 41920  |
| Disability and illness (actual loss compensation) | &nbsp;&nbsp;Increased by<br>2.62% |  | &nbsp;&nbsp;39445049  | 6463985  | (118469) | 41920  |
| Long-term property and other | &nbsp;&nbsp;Increased by<br>4.19% |  | &nbsp;&nbsp;38727725  | 7062840  | &nbsp;&nbsp;- | - |
| lapse rate (increase) | &nbsp;&nbsp;Increased by<br>9.16% |  | &nbsp;&nbsp;39477221  | 6345060  | &nbsp;&nbsp;(31715) | (92695) |
| lapse rate (decrease) | &nbsp;&nbsp;Decreased by 9.16% |  | &nbsp;&nbsp;37900620  | 7876309  | &nbsp;&nbsp;13636  | 97419  |
| Operating expense (level) | &nbsp;&nbsp;Increased by<br>2.62% |  | &nbsp;&nbsp;38944441  | 6861174  | &nbsp;&nbsp;(15050) | 16960  |
| Operating expense (inflation) | &nbsp;&nbsp;Increased by<br>0.26%p |  | &nbsp;&nbsp;38944441  | 6861174  | &nbsp;&nbsp;(15050) | 16960  |

---

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**6. <u>Insurance Risk (continued)</u>**

(a) Overview of the insurance risk – Shinhan Life Insurance Co., Ltd. (continued)

*vi) Sensitivity to Insurance Risk (continued)*

The impacts of changes in major assumptions on insurance contract liabilities (assets) as of December 31, 2025 and December 31, 2024 are as follows (continued):

*vi -4) After reflecting the effects of reinsurance (continued)*

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  |  |  | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
|  |  |  | **Base amount and base amount after change** | **Base amount and base amount after change** | **Profit and capital impact (before tax)** | **Profit and capital impact (before tax)** |
|  | **Sensitivity (\*2)** |  | **Fulfilment cash flows (\*3)** | **Contractual service margin** | **Profit (loss) (\*4)** | **Other comprehensive income** |
| Base amount |  | W | 39819864  | 6869326  | - | - |
| Mortality rate | Increased by 3.27% |  | &nbsp;&nbsp;39946680  | 6740875  | 1635  | 8702  |
| Disability and illness (fixed compensation) | Increased by 3.40% |  | &nbsp;&nbsp;40478965  | 6256714  | (46488) | 34285  |
| Disability and illness (actual loss compensation) | &nbsp;&nbsp;Increased by<br>2.62% |  | &nbsp;&nbsp;40478965  | 6256714  | (46488) | 34285  |
| Long-term property and other | &nbsp;&nbsp;Increased by<br>4.19% |  | &nbsp;&nbsp;39819864  | 6869326  | &nbsp;&nbsp;- | - |
| lapse rate (increase) | &nbsp;&nbsp;Increased by<br>9.16% |  | &nbsp;&nbsp;40533222  | 6181469  | &nbsp;&nbsp;(25501) | (86772) |
| lapse rate (decrease) | &nbsp;&nbsp;Decreased by 9.16% |  | &nbsp;&nbsp;39031830  | 7651376  | &nbsp;&nbsp;5984  | 133903  |
| Operating expense (level) | &nbsp;&nbsp;Increased by<br>2.62% |  | &nbsp;&nbsp;40031868  | 6669753  | &nbsp;&nbsp;(12430) | 9624  |
| Operating expense (inflation) | &nbsp;&nbsp;Increased by<br>0.26%p |  | &nbsp;&nbsp;40031868  | 6669753  | &nbsp;&nbsp;(12430) | 9624  |

---

(\*1) This amount represents the combined total of participating, non-participating, and variable insurance contracts.

(\*2) The risk adjustment is calculated at the 75% confidence level.

(\*3) The risk adjustment included in the fulfilment cash flows was calculated without shock.

(\*4) The profit (loss) for the year consists of (i) an increase in the present value estimate of future cash flows that exceeds the carrying amount of the contractual service margin, resulting in a loss due to changes in assumptions, and (ii) changes in the present value estimate of future cash flows allocated to the loss component, which also result from changes in assumptions.

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**6. <u>Insurance Risk (continued)</u>**

(a) Overview of the insurance risk – Shinhan Life Insurance Co., Ltd. (continued)

*vii) Credit risk arising from insurance contracts*

The amounts of the reinsurance contracts held, which are an asset according to risk level, as of December 31, 2025 and December 31, 2024 are as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  |  | **December 31, 2025** | **December 31, 2025** | **December 31, 2024** | **December 31, 2024** |
|  |  | **Reinsurance residual coverage assets** | **Reinsurance incident assets** | &nbsp;&nbsp;&nbsp;**Reinsurance residual coverage assets** | **Reinsurance incident assets** |
| AA+ ~ AA- | W | 335,136 | 20,462 | - | 146 |

---

*viii) Interest rate risk arising from insurance contracts*

The impacts of exposure to interest rate risk and interest rate changes on profit or loss and equity as of December 31, 2025 and December 31, 2024 are as follows:

*viii-1) Interest rate risk exposure*

---

| | | | |
|:---|:---|:---|:---|
|  |  | **December 31, 2025** | **December 31, 2024** |
| Exposure to financial products measured at fair value (\*1) | W | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;47717387 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 48843348 |
| Exposure to insurance contracts (\*2)  |  |  |  |
| Participating |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4738480  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4979280  |
| &nbsp;&nbsp;&nbsp;&nbsp;Non-participating |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;28289432  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;29628025  |
| &nbsp;&nbsp;&nbsp;&nbsp;Variable |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5528259  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4773118  |
| Others |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;172430  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;439613  |
|  |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;38728601 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;39820035 |
| Net exposure (financial products - insurance contracts) | W | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8988786 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 9023312 |

---

(\*1) It is the total amount of financial assets measured at fair value through profit or loss, financial assets measured at fair value through other comprehensive income, and derivative assets (liabilities).

(\*2) It is the total amount excluding the contractual service margin from the remaining coverage components of insurance contract liabilities and reinsurance contract assets (liabilities).

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**6. <u>Insurance Risk (continued)</u>**

(a) Overview of the insurance risk – Shinhan Life Insurance Co., Ltd. (continued)

*viii) Interest rate risk arising from insurance contracts (continued)*

The impacts of exposure to interest rate risk and interest rate changes on profit or loss and equity as of December 31, 2025 and December 31, 2024 are as follows (continued):

*viii-2) Interest rate risk sensitivity*

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  |  | **December 31, 2025** | **December 31, 2025** | **December 31, 2024** | **December 31, 2024** |
|  |  | **Profit or loss** | **Equity** | **Profit or loss** | **Equity** |
| 100 bp Increase |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Insurance contracts (\*1) |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Participating | W | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;509420  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;539618  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Non-participating |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4535425  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3772927  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Variable |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;21308  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;44699  |
|  | W | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5066153 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4357244 |
| &nbsp;&nbsp;&nbsp;&nbsp;Reinsurance contracts (\*1) |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;255489  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;50365 |
| &nbsp;&nbsp;&nbsp;&nbsp;Financial assets (\*2) | W | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(26466) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4736892) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(35934) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4777699) |
| 100 bp Decrease |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Insurance contracts (\*1) |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Participating | W | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(620972) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(658212) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Non-participating |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5802811) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5332780) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Variable |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(60875) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(82742) |
|  | W | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6484658) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6073734) |
| &nbsp;&nbsp;&nbsp;&nbsp;Reinsurance contracts (\*1) |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(308842) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(59948) |
| &nbsp;&nbsp;&nbsp;&nbsp;Financial assets (\*2) | W | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;26563  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5800791  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;35934 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5837965 |

---

(\*1) This is the impact on capital (before tax) due to changes in expected cash flows of insurance and reinsurance contracts, excluding variable annuities/savings.

(\*2) These sensitivities are calculated for assets related to insurance contracts, excluding variable annuities and savings products. The effect on profit or loss represents changes in the fair value of financial assets measured at FVTPL, while the effect on equity represents changes in the fair value of financial assets measured at FVOCI.

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**6. <u>Insurance Risk (continued)</u>**

(a) Overview of the insurance risk – Shinhan Life Insurance Co., Ltd. (continued)

*ⅸ) Equity risk arising from insurance contracts*

The impact of changes in equity prices on profit or loss and equity as of December 31, 2025 and 2024 is as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  |  | **December 31, 2025** | **December 31, 2025** | **December 31, 2024** | **December 31, 2024** |
|  |  | **Profit or loss** | **Equity** | **Profit or loss** | **Equity** |
| 100 bp Increase |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Insurance contracts |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Participating | W | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Non-participating |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Variable |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(255595) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(193578) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- |
|  | W | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(255595) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(193578) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- |
| &nbsp;&nbsp;&nbsp;&nbsp;Reinsurance contracts |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- |
| &nbsp;&nbsp;&nbsp;&nbsp;Financial assets | W | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;255595  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;193578  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- |
| 100 bp Decrease |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Insurance contracts |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Participating | W | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Non-participating |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Variable |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;255595  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;193578  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- |
|  | W | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;255595  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;193578  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- |
| &nbsp;&nbsp;&nbsp;&nbsp;Reinsurance contracts |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- |
| &nbsp;&nbsp;&nbsp;&nbsp;Financial assets | W | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(255595) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(193578) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- |

---

(\*) The analysis is performed for assets related to variable annuity and savings insurance contracts subject to the Variable Fee Approach. The effect on profit or loss represents changes in the fair value of financial assets measured at FVTPL.

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**6. <u>Insurance Risk (continued)</u>**

(a) Overview of the insurance risk – Shinhan Life Insurance Co., Ltd. (continued)

*ⅹ) Liquidity risk arising from insurance contracts* 

The maturity analysis of undiscounted remaining contractual cash flows as of December 31, 2025 and December 31, 2024 is as follow:

This amount does not include matters relating to remaining coverage liabilities (insurance contracts and reinsurance contracts) measured under the premium allocation approach.

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | &nbsp;&nbsp;**December 31, 2025** | &nbsp;&nbsp;**December 31, 2025** | &nbsp;&nbsp;**December 31, 2025** | &nbsp;&nbsp;**December 31, 2025** | &nbsp;&nbsp;**December 31, 2025** | &nbsp;&nbsp;**December 31, 2025** | &nbsp;&nbsp;**December 31, 2025** |
|  |  | Less than or equal to<br>1 year | &nbsp;&nbsp;1 ~ 2<br>years | &nbsp;&nbsp;2 ~ 3<br>years | &nbsp;&nbsp;3 ~ 4<br>years | &nbsp;&nbsp;4 ~ 5<br>years | &nbsp;&nbsp;More than<br>5 years | &nbsp;&nbsp;Total |
| &nbsp;&nbsp;&nbsp;**Insurance contracts** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Participating: |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash Inflow | &nbsp;&nbsp;&nbsp;&nbsp;W | &nbsp;&nbsp;34397  | &nbsp;&nbsp;25425  | &nbsp;&nbsp;20141  | &nbsp;&nbsp;16443  | &nbsp;&nbsp;13515  | &nbsp;&nbsp;63988  | &nbsp;&nbsp;173909  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash Outflow |  | &nbsp;&nbsp;(240847) | &nbsp;&nbsp;(253700) | &nbsp;&nbsp;(255690) | &nbsp;&nbsp;(258371) | &nbsp;&nbsp;(261112) | &nbsp;&nbsp;(8042439) | &nbsp;&nbsp;(9312159) |
|  |  | &nbsp;&nbsp;(206450) | &nbsp;&nbsp;(228275) | &nbsp;&nbsp;(235549) | &nbsp;&nbsp;(241928) | &nbsp;&nbsp;(247597) | &nbsp;&nbsp;(7978451) | &nbsp;&nbsp;(9138250) |
| &nbsp;&nbsp;&nbsp;Non-participating: |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash Inflow |  | &nbsp;&nbsp;6331260  | &nbsp;&nbsp;5662522  | &nbsp;&nbsp;5010684  | &nbsp;&nbsp;4358197  | &nbsp;&nbsp;3771019  | &nbsp;&nbsp;51088737  | &nbsp;&nbsp;76222419  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash Outflow |  | &nbsp;&nbsp;(5068663) | &nbsp;&nbsp;(4871804) | &nbsp;&nbsp;(4780238) | &nbsp;&nbsp;(4705099) | &nbsp;&nbsp;(4437033) | &nbsp;&nbsp;(134903633) | &nbsp;&nbsp;(158766470) |
|  |  | &nbsp;&nbsp;1262597  | &nbsp;&nbsp;790718  | &nbsp;&nbsp;230446  | &nbsp;&nbsp;(346902) | &nbsp;&nbsp;(666014) | &nbsp;&nbsp;(83814896) | &nbsp;&nbsp;(82544051) |
| &nbsp;&nbsp;&nbsp;Variable: |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash Inflow |  | &nbsp;&nbsp;437302  | &nbsp;&nbsp;361966  | &nbsp;&nbsp;297826  | &nbsp;&nbsp;249995  | &nbsp;&nbsp;213177  | &nbsp;&nbsp;2158311  | &nbsp;&nbsp;3718577  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash Outflow |  | &nbsp;&nbsp;(948429) | &nbsp;&nbsp;(855175) | &nbsp;&nbsp;(765759) | &nbsp;&nbsp;(669433) | &nbsp;&nbsp;(604609) | &nbsp;&nbsp;(8817026) | &nbsp;&nbsp;(12660431) |
|  |  | &nbsp;&nbsp;(511127) | &nbsp;&nbsp;(493209) | &nbsp;&nbsp;(467933) | &nbsp;&nbsp;(419438) | &nbsp;&nbsp;(391432) | &nbsp;&nbsp;(6658715) | &nbsp;&nbsp;(8941854) |
|  |  | &nbsp;&nbsp;545020  | &nbsp;&nbsp;69234  | &nbsp;&nbsp;(473036) | &nbsp;&nbsp;(1008268) | &nbsp;&nbsp;(1305043) | &nbsp;&nbsp;(98452062) | &nbsp;&nbsp;(100624155) |
| &nbsp;&nbsp;&nbsp;**Reinsurance contracts** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash Inflow |  | &nbsp;&nbsp;322122  | &nbsp;&nbsp;302044  | &nbsp;&nbsp;286274  | &nbsp;&nbsp;278232  | &nbsp;&nbsp;271893  | &nbsp;&nbsp;9694621  | &nbsp;&nbsp;11155186  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash Outflow |  | &nbsp;&nbsp;(347205) | &nbsp;&nbsp;(334989) | &nbsp;&nbsp;(321136) | &nbsp;&nbsp;(312211) | &nbsp;&nbsp;(305518) | &nbsp;&nbsp;(9388316) | &nbsp;&nbsp;(11009375) |
|  |  | &nbsp;&nbsp;(25083) | &nbsp;&nbsp;(32945) | &nbsp;&nbsp;(34862) | &nbsp;&nbsp;(33979) | &nbsp;&nbsp;(33625) | &nbsp;&nbsp;306305  | &nbsp;&nbsp;145811  |
| &nbsp;&nbsp;&nbsp;Total (including variable insurance contracts) |  | &nbsp;&nbsp;519937  | &nbsp;&nbsp;36289  | &nbsp;&nbsp;(507898) | &nbsp;&nbsp;(1042247) | &nbsp;&nbsp;(1338668) | &nbsp;&nbsp;(98145757) | &nbsp;&nbsp;(100478344) |
| &nbsp;&nbsp;&nbsp;Total (excluding variable insurance contracts) | W | &nbsp;&nbsp;1031064  | &nbsp;&nbsp;529498  | &nbsp;&nbsp;(39965) | &nbsp;&nbsp;(622809) | &nbsp;&nbsp;(947236) | &nbsp;&nbsp;(91487042) | &nbsp;&nbsp;(91536490) |

---

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**6. <u>Insurance Risk (continued)</u>**

(a) Overview of the insurance risk – Shinhan Life Insurance Co., Ltd. (continued)

*ⅹ) Liquidity risk arising from insurance contracts (continued)*

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | &nbsp;&nbsp;**December 31, 2024** | &nbsp;&nbsp;**December 31, 2024** | &nbsp;&nbsp;**December 31, 2024** | &nbsp;&nbsp;**December 31, 2024** | &nbsp;&nbsp;**December 31, 2024** | &nbsp;&nbsp;**December 31, 2024** | &nbsp;&nbsp;**December 31, 2024** |
|  |  | Less than or equal to<br>1 year | &nbsp;&nbsp;1 ~ 2<br>years | &nbsp;&nbsp;2 ~ 3<br>years | &nbsp;&nbsp;3 ~ 4<br>years | &nbsp;&nbsp;4 ~ 5<br>years | &nbsp;&nbsp;More than<br>5 years | &nbsp;&nbsp;Total |
| &nbsp;&nbsp;&nbsp;**Insurance contracts** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Participating: |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash Inflow | &nbsp;&nbsp;&nbsp;&nbsp;W | &nbsp;&nbsp;43374  | &nbsp;&nbsp;33437  | &nbsp;&nbsp;24916  | &nbsp;&nbsp;19959  | &nbsp;&nbsp;16437  | &nbsp;&nbsp;106215  | &nbsp;&nbsp;244338  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash Outflow |  | &nbsp;&nbsp;(240206) | &nbsp;&nbsp;(228226) | &nbsp;&nbsp;(232215) | &nbsp;&nbsp;(241157) | &nbsp;&nbsp;(240783) | &nbsp;&nbsp;(8645374) | &nbsp;&nbsp;(9827961) |
|  |  | &nbsp;&nbsp;(196832) | &nbsp;&nbsp;(194789) | &nbsp;&nbsp;(207299) | &nbsp;&nbsp;(221198) | &nbsp;&nbsp;(224346) | &nbsp;&nbsp;(8539159) | &nbsp;&nbsp;(9583623) |
| &nbsp;&nbsp;&nbsp;Non-participating: |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash Inflow |  | &nbsp;&nbsp;5582811  | &nbsp;&nbsp;4840753  | &nbsp;&nbsp;4361203  | &nbsp;&nbsp;3863416  | &nbsp;&nbsp;3314013  | &nbsp;&nbsp;47454014  | &nbsp;&nbsp;69416210  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash Outflow |  | &nbsp;&nbsp;(5750906) | &nbsp;&nbsp;(4300951) | &nbsp;&nbsp;(4353876) | &nbsp;&nbsp;(4074145) | &nbsp;&nbsp;(4294566) | &nbsp;&nbsp;(124429513) | &nbsp;&nbsp;(147203957) |
|  |  | &nbsp;&nbsp;(168095) | &nbsp;&nbsp;539802  | &nbsp;&nbsp;7327  | &nbsp;&nbsp;(210729) | &nbsp;&nbsp;(980553) | &nbsp;&nbsp;(76975499) | &nbsp;&nbsp;(77787747) |
| &nbsp;&nbsp;&nbsp;Variable: |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash Inflow |  | &nbsp;&nbsp;482531  | &nbsp;&nbsp;402250  | &nbsp;&nbsp;334537  | &nbsp;&nbsp;279308  | &nbsp;&nbsp;237124  | &nbsp;&nbsp;2351146  | &nbsp;&nbsp;4086896  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash Outflow |  | &nbsp;&nbsp;(916187) | &nbsp;&nbsp;(783304) | &nbsp;&nbsp;(709458) | &nbsp;&nbsp;(636965) | &nbsp;&nbsp;(559272) | &nbsp;&nbsp;(8181229) | &nbsp;&nbsp;(11786415) |
|  |  | &nbsp;&nbsp;(433656) | &nbsp;&nbsp;(381054) | &nbsp;&nbsp;(374921) | &nbsp;&nbsp;(357657) | &nbsp;&nbsp;(322148) | &nbsp;&nbsp;(5830083) | &nbsp;&nbsp;(7699519) |
|  |  | &nbsp;&nbsp;(798583) | &nbsp;&nbsp;(36041) | &nbsp;&nbsp;(574893) | &nbsp;&nbsp;(789584) | &nbsp;&nbsp;(1527047) | &nbsp;&nbsp;(91344741) | &nbsp;&nbsp;(95070889) |
| &nbsp;&nbsp;&nbsp;**Reinsurance contracts** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash Inflow |  | &nbsp;&nbsp;225165  | &nbsp;&nbsp;216544  | &nbsp;&nbsp;209995  | &nbsp;&nbsp;207721  | &nbsp;&nbsp;207575  | &nbsp;&nbsp;8223398  | &nbsp;&nbsp;9290398  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash Outflow |  | &nbsp;&nbsp;(244930) | &nbsp;&nbsp;(237756) | &nbsp;&nbsp;(230883) | &nbsp;&nbsp;(227262) | &nbsp;&nbsp;(226934) | &nbsp;&nbsp;(9123146) | &nbsp;&nbsp;(10290911) |
|  |  | &nbsp;&nbsp;(19765) | &nbsp;&nbsp;(21212) | &nbsp;&nbsp;(20888) | &nbsp;&nbsp;(19541) | &nbsp;&nbsp;(19359) | &nbsp;&nbsp;(899748) | &nbsp;&nbsp;(1000513) |
| &nbsp;&nbsp;&nbsp;Total (including variable insurance contracts) |  | &nbsp;&nbsp;(818348) | &nbsp;&nbsp;(57253) | &nbsp;&nbsp;(595781) | &nbsp;&nbsp;(809125) | &nbsp;&nbsp;(1546406) | &nbsp;&nbsp;(92244489) | &nbsp;&nbsp;(96071402) |
| &nbsp;&nbsp;&nbsp;Total (excluding variable insurance contracts) | W | &nbsp;&nbsp;(384692) | &nbsp;&nbsp;323801  | &nbsp;&nbsp;(220860) | &nbsp;&nbsp;(451468) | &nbsp;&nbsp;(1224258) | &nbsp;&nbsp;(86414406) | &nbsp;&nbsp;(88371883) |

---

As of December 31, 2025 and 2024, the amount to be paid upon request by the contractor of insurance contracts issued by Shinhan Life Insurance Co., Ltd. is W 56,064,811 million and W 53,227,935 million.

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**6. <u>Insurance Risk (continued)</u>**

(a) Overview of the insurance risk – Shinhan Life Insurance Co., Ltd. (continued)

*ⅺ) Claims development*

The amounts of claims development as of December 31, 2025 and 2024 are as follows:

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | &nbsp;&nbsp;**December 31, 2025** | &nbsp;&nbsp;**December 31, 2025** | &nbsp;&nbsp;**December 31, 2025** | &nbsp;&nbsp;**December 31, 2025** | &nbsp;&nbsp;**December 31, 2025** | &nbsp;&nbsp;**December 31, 2025** |
| **Progress yea**r |  | &nbsp;&nbsp;**Year of incident** | &nbsp;&nbsp;**Year of incident** | &nbsp;&nbsp;**Year of incident** | &nbsp;&nbsp;**Year of incident** | &nbsp;&nbsp;**Year of incident** |  |
|  |  | **2021** | &nbsp;&nbsp;**2022** | &nbsp;&nbsp;**2023** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2024** | &nbsp;&nbsp;**2025** | &nbsp;&nbsp;**Total** |
| &nbsp;&nbsp;&nbsp;**Undiscounted estimate of ultimate loss** | &nbsp;&nbsp;&nbsp;&nbsp;W | &nbsp;&nbsp;1069793  | &nbsp;&nbsp;1106219  | &nbsp;&nbsp;1154705  | &nbsp;&nbsp;1232242  | &nbsp;&nbsp;1419726  | &nbsp;&nbsp;5982685  |
| Paid claims: |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Current year |  | &nbsp;&nbsp;832601  | &nbsp;&nbsp;857694  | &nbsp;&nbsp;896770  | &nbsp;&nbsp;952706  | &nbsp;&nbsp;1098335  | &nbsp;&nbsp;4638106  |
| &nbsp;&nbsp;&nbsp;1 year after |  | &nbsp;&nbsp;187431  | &nbsp;&nbsp;194972  | &nbsp;&nbsp;201175  | &nbsp;&nbsp;220039  | &nbsp;&nbsp;- | &nbsp;&nbsp;803617  |
| &nbsp;&nbsp;&nbsp;2 years after |  | &nbsp;&nbsp;27435  | &nbsp;&nbsp;27703  | &nbsp;&nbsp;30697  | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;85835  |
| &nbsp;&nbsp;&nbsp;3 years after |  | &nbsp;&nbsp;12000  | &nbsp;&nbsp;15032  | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;27032  |
| &nbsp;&nbsp;&nbsp;4 years after |  | &nbsp;&nbsp;4859  | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;4859  |
| **Cumulative paid claims** | &nbsp;&nbsp;&nbsp;&nbsp;W | &nbsp;&nbsp;1064326  | &nbsp;&nbsp;1095401  | &nbsp;&nbsp;1128642  | &nbsp;&nbsp;1172745  | &nbsp;&nbsp;1098335  | &nbsp;&nbsp;5559449  |
| &nbsp;&nbsp;&nbsp;The difference between the estimated ultimate loss and paid claims |  | &nbsp;&nbsp;5467  | &nbsp;&nbsp;10818  | &nbsp;&nbsp;26063  | &nbsp;&nbsp;59497  | &nbsp;&nbsp;321391  | &nbsp;&nbsp;423236  |
| &nbsp;&nbsp;&nbsp;Discount effect |  | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;(12313) |
| &nbsp;&nbsp;&nbsp;Future loss adjustment expenses |  | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;9205  |
| &nbsp;&nbsp;&nbsp;Reported but unpaid claims |  | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;1366616  |
| &nbsp;&nbsp;&nbsp;Risk adjustment for non-financial risks |  | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;15973  |
| &nbsp;&nbsp;&nbsp;Reinsurance effect |  | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;(119384) |
| &nbsp;&nbsp;&nbsp;**Total liabilities for incurred claims** | W | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;1683333  |

---

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | &nbsp;&nbsp;**December 31, 2024** | &nbsp;&nbsp;**December 31, 2024** | &nbsp;&nbsp;**December 31, 2024** | &nbsp;&nbsp;**December 31, 2024** | &nbsp;&nbsp;**December 31, 2024** | &nbsp;&nbsp;**December 31, 2024** |
| **Progress yea**r |  | &nbsp;&nbsp;**Year of incident** | &nbsp;&nbsp;**Year of incident** | &nbsp;&nbsp;**Year of incident** | &nbsp;&nbsp;**Year of incident** | &nbsp;&nbsp;**Year of incident** |  |
|  |  | **2020** | &nbsp;&nbsp;**2021** | &nbsp;&nbsp;**2022** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2023** | &nbsp;&nbsp;**2024** | &nbsp;&nbsp;**Total** |
| &nbsp;&nbsp;&nbsp;**Undiscounted estimate of ultimate loss** | &nbsp;&nbsp;&nbsp;&nbsp;W | &nbsp;&nbsp;959974 | &nbsp;&nbsp;1070850 | &nbsp;&nbsp;1104112 | &nbsp;&nbsp;1152207 | &nbsp;&nbsp;1233110 | &nbsp;&nbsp;5520253 |
| Paid claims: |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Current year |  | &nbsp;&nbsp;746984 | &nbsp;&nbsp;833427 | &nbsp;&nbsp;857650 | &nbsp;&nbsp;896474 | &nbsp;&nbsp;957713 | &nbsp;&nbsp;4292248 |
| &nbsp;&nbsp;&nbsp;1 year after |  | &nbsp;&nbsp;166072 | &nbsp;&nbsp;187415 | &nbsp;&nbsp;195026 | &nbsp;&nbsp;202132 | &nbsp;&nbsp;- | &nbsp;&nbsp;750645 |
| &nbsp;&nbsp;&nbsp;2 years after |  | &nbsp;&nbsp;23751 | &nbsp;&nbsp;27433 | &nbsp;&nbsp;27763 | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;78947 |
| &nbsp;&nbsp;&nbsp;3 years after |  | &nbsp;&nbsp;13248 | &nbsp;&nbsp;12079 | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;25327 |
| &nbsp;&nbsp;&nbsp;4 years after |  | &nbsp;&nbsp;4849 | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;4849 |
| **Cumulative paid claims** | &nbsp;&nbsp;&nbsp;&nbsp;W | &nbsp;&nbsp;954904 | &nbsp;&nbsp;1060354 | &nbsp;&nbsp;1080439 | &nbsp;&nbsp;1098606 | &nbsp;&nbsp;957713 | &nbsp;&nbsp;5152016 |
| &nbsp;&nbsp;&nbsp;The difference between the estimated ultimate loss and paid claims |  | &nbsp;&nbsp;5070 | &nbsp;&nbsp;10496 | &nbsp;&nbsp;23673 | &nbsp;&nbsp;53601 | &nbsp;&nbsp;275397 | &nbsp;&nbsp;368237 |
| &nbsp;&nbsp;&nbsp;Discount effect |  | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;(11011) |
| &nbsp;&nbsp;&nbsp;Future loss adjustment expenses |  | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;7316 |
| &nbsp;&nbsp;&nbsp;Reported but unpaid claims |  | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;1436530 |
| &nbsp;&nbsp;&nbsp;Risk adjustment for non-financial risks |  | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;14041 |
| &nbsp;&nbsp;&nbsp;Reinsurance effect |  | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;(94435) |
| &nbsp;&nbsp;&nbsp;**Total liabilities for incurred claims** | W | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;1720678 |

---

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**6. <u>Insurance Risk (continued)</u>**

(b) Overview of the insurance risk – Shinhan EZ General Insurance Co., Ltd.

*i) Overview of insurance risks*

Insurance risk is defined as the risk that arises in connection with the underwriting of insurance contracts and payment of claims, which are the unique tasks of an insurance company, and is managed by dividing it into long-term non-life insurance risk and general non-life insurance risk.

Long-term non-life insurance risk refers to the risk of loss due to risk factors that may arise in a long-term non-life insurance contract and is divided and measured into death risk, longevity risk, disability and illness risk, property/other risk, operating expense risk, project cost risk, and catastrophe risk. General non-life insurance risk refers to the risk of loss due to risk factors that may arise in general non-life insurance contracts and is measured by dividing it into insurance price risk, reserve risk, and catastrophe risk.

*i-1) Long-term non-life insurance risk*

Mortality risk and longevity risk refer to the risk of unexpected losses related to the death of the policyholder and are measured by the risk of a decrease in net asset value due to changes in the mortality level.

Disability and illness risk is the risk of unexpected losses related to the policyholder's disability or illness and is measured as the risk of a decrease in net asset value due to changes in the risk level of disability and illness coverage.

Property and other risks are the risk of unexpected losses related to property, costs, compensation, and other collateral, and are measured as the risk of a decrease in net asset value due to changes in the risk level of property, costs, compensation, and other collateral.

Cancellation risk refers to the risk of unexpected losses due to the policyholder's exercise of options, such as contract termination or early withdrawal, and is measured by the risk of a decrease in net asset value due to changes in the policyholder's option exercise rate or group termination of policyholders.

Operating expense risk includes the risk arising from changes in spending due to inflation and the level of future costs related to insurance contract costs. Costs related to insurance contracts include all cost items except allowances.

Catastrophe risk refers to the risk of potential loss due to extreme or exceptional risks (e.g. epidemic disease, major accident, etc.) that are not considered in the risk of death.

*i-2) General non-life insurance risk*

Insurance price risk refers to the risk resulting from uncertainty related to the timing, frequency, and severity of future insured events.

Reserve risk refers to the risk that the reserve liability accumulated to pay insurance claims for insurance events that have occurred in the relevant contract will not cover the insurance claims to be paid in the future.

Catastrophe risk refers to the risk of potential loss due to extreme or exceptional risks (natural disasters, major accidents, major guarantees, etc.) that are not considered in insurance prices and reserve risks.

*ii) Measurement and management of insurance risk*

*ii-1) Measurement of insurance risk*

Shinhan EZ General Insurance Co., Ltd. measures general and long-term insurance risks through the solvency amount and the statutory solvency amount calculation criteria under the Detailed Enforcement Rules of the Insurance Business Supervisory Regulations and operates related risk management policies.

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**6. <u>Insurance Risk (continued)</u>**

(b) Overview of the insurance risk – Shinhan EZ General Insurance Co., Ltd. (continued)

*ii) Measurement and management of insurance risk (continued)*

*ii-2) Insurance risk management organization and management method*

Shinhan EZ General Insurance Co., Ltd. determines an insurance risk permissible limit every year, monitors compliance with the limit, and executes in accordance with predetermined countermeasures when the insurance risk exceeds the limit. In addition, underwriting guidelines, retention, and reinsurance strategies are established and operated so that risks can be retained at an appropriate level for each type of insurance.

*ii-3) Claims development*

In accordance with K-IFRS No. 1117, Shinhan EZ General Insurance Co., Ltd. considers that the frequency and severity of future claims may be more adverse than those reflected in the risk adjustment assumptions when estimating insured events. In general, uncertainty related to insurance claims and costs due to an insured event is greatest when the accident is in its early stages, and as the year of the accident progresses, the uncertainty of the final claims and costs decreases.

*ii-4) Sensitivity to insurance risk*

Shinhan EZ General Insurance Co., Ltd. manages insurance risks through sensitivity analysis based on cancellation rates, loss ratios, and operating expense rates that are judged to have a significant impact on the amount, timing, and uncertainty of the insurer's future cash flows.

*ii-5) Liquidity risk arising from insurance contracts*

Liquidity risk arising from insurance contracts may result in the inability to respond to payment demands due to inconsistencies in the operation of funds and the procurement period and amount, or incur losses due to the procurement of high-interest funds or unfavorable sales of held assets to resolve fund shortages. It means there is a risk. Shinhan EZ General Insurance Co., Ltd. monitors liquidity ratios to manage liquidity risk.

*ii-6) Credit risk arising from insurance contracts*

Credit risk arising from an insurance contract refers to the possibility of economic loss that may occur if the reinsurer, the counterparty to the transaction, is unable to fulfil its obligations specified in the contract due to default or deterioration of credit rating. Shinhan EZ General Insurance Co., Ltd. transacts as a reinsurer with high-quality insurance companies that have been given a rating of BBB- or higher by S&P or an equivalent rating through strict internal review.

*ii-7) Interest rate risk arising from insurance contracts*

Interest rate risk exposed to Shinhan EZ General Insurance Co., Ltd. 's insurance contracts is the risk of unexpected losses arising from changes in net interest income or net asset value depending on changes in interest rates. The consolidated entity manages this to minimize unexpected losses arising from interest rate changes.

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**7. <u>Investment in subsidiaries</u>**

(a) The summarized financial information of the controlling company and the Group's major subsidiaries as of December 31, 2025 and 2024 is as follows:

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
| **Investees (\*1), (\*2)** |  | &nbsp;&nbsp;**Total** <br>**Assets** | &nbsp;&nbsp;**Total** <br>**Liabilities** | &nbsp;&nbsp;**Total** <br>**Equity** | &nbsp;&nbsp;**Total** <br>**Assets** | &nbsp;&nbsp;**Total** <br>**Liabilities** | &nbsp;&nbsp;**Total** <br>**Equity** |
| &nbsp;&nbsp;&nbsp;Shinhan Financial Group (separate) | W  | 37793827  | 11458367  | 26335460  | 37672303 | 11324128 | 26348175 |
| &nbsp;&nbsp;&nbsp;Shinhan Bank |  | 596967318  | 558513573  | 38453745  | 556691161  | 519926426  | 36764735  |
| &nbsp;&nbsp;&nbsp;Shinhan Card Co., Ltd. |  | 43186732  | 34686850  | 8499882  | 44137094  | 35860198  | 8276896  |
| &nbsp;&nbsp;&nbsp;Shinhan Securities Co., Ltd. |  | 54077820  | 48280415  | 5797405  | 49026790  | 43532326  | 5494464  |
| &nbsp;&nbsp;&nbsp;Shinhan Life Insurance Co., Ltd. |  | 59661505  | 53455107  | 6206398  | 59843268  | 52802301  | 7040967  |
| &nbsp;&nbsp;&nbsp;Shinhan Capital Co., Ltd. |  | 12482497  | 10166788  | 2315709  | 12512659  | 10259145  | 2253514  |
| &nbsp;&nbsp;&nbsp;Jeju Bank |  | 8019927  | 7372657  | 647270  | 7444771  | 6854663  | 590108  |
| &nbsp;&nbsp;&nbsp;Shinhan Asset Management Co., Ltd. |  | 381311  | 87974  | 293337  | 503319 | 186991 | 316328 |
| &nbsp;&nbsp;&nbsp;SHC Management Co., Ltd. |  | 10480  | - | 10480  | 10325  | - | 10325  |
| &nbsp;&nbsp;&nbsp;Shinhan DS |  | 131276  | 64456  | 66820  | 139322  | 76603  | 62719  |
| &nbsp;&nbsp;&nbsp;Shinhan Savings Bank |  | 2982788  | 2603718  | 379070  | 2879145  | 2512348  | 366797  |
| &nbsp;&nbsp;&nbsp;Shinhan Asset Trust Co., Ltd.  |  | 881518  | 564731  | 316787  | 775844  | 471890  | 303954  |
| &nbsp;&nbsp;&nbsp;Shinhan Fund Partners Co., Ltd |  | 112911  | 23555  | 89356  | 122507  | 22580  | 99927  |
| &nbsp;&nbsp;&nbsp;Shinhan REITs Management Co., Ltd. |  | 83488  | 7920  | 75568  | 82781 | 12640 | 70141 |
| &nbsp;&nbsp;&nbsp;Shinhan Venture Investment Co., Ltd. |  | 192749  | 103912  | 88837  | 176165 | 90967 | 85198 |
| &nbsp;&nbsp;&nbsp;Shinhan EZ General Insurance Co., Ltd. |  | 361063  | 185342  | 175721  | 289867 | 178573 | 111294 |

---

(\*1) The summarized financial information of the consolidated subsidiaries are based on consolidated financial statements, if applicable.

(\*2) Trusts, beneficiary certificates, securitization special limited liability companies, associates and private equity investment specialists that are not actually operating their own business are excluded.

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**7. <u>Investment in subsidiaries (continued)</u>**

(b) The summarized income statement information of the controlling company and the Group's major subsidiaries for the years ended December 31, 2025 and 2024 is as follows:

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
| **Investees (\*1), (\*2)** |  | **Operating**<br>**Revenue**  | **Net** <br>**Income (\*3)** | **Comprehensive Income (\*3)** | **Operating**<br>**Revenue** | **Net** <br>**Income (\*3)** | **Comprehensive Income (\*3)** |
| &nbsp;&nbsp;&nbsp;Shinhan Financial Group (separate) | W  | 2956974  | 2385457  | 2383400  | 2556503  | 1619867  | 1617202  |
| &nbsp;&nbsp;&nbsp;Shinhan Bank |  | 39167414  | 3775822  | 3582428  | 47357783  | 3695913  | 4414685  |
| &nbsp;&nbsp;&nbsp;Shinhan Card Co., Ltd. |  | 5892383  | 480205  | 539374  | 6173106  | 575261  | 553274  |
| &nbsp;&nbsp;&nbsp;Shinhan Securities Co., Ltd. |  | 9646202  | 381605  | 403740  | 11446637  | 179160  | 179829  |
| &nbsp;&nbsp;&nbsp;Shinhan Life Insurance Co., Ltd. |  | 7816814  | 507708  | (149342) | 7044374  | 528401  | (1056025) |
| &nbsp;&nbsp;&nbsp;Shinhan Capital Co., Ltd. |  | 1125840  | 108273  | 105601  | 1201874  | 116948  | 115203  |
| &nbsp;&nbsp;&nbsp;Jeju Bank |  | 369561  | 13930  | 9330  | 382121  | 10416  | 12709  |
| &nbsp;&nbsp;&nbsp;Shinhan Asset Management Co., Ltd. |  | 197447  | 56010  | 56209  | 241409  | 66003  | 65512  |
| &nbsp;&nbsp;&nbsp;SHC Management Co., Ltd. |  | - | 155  | 155  | - | 274  | 274  |
| &nbsp;&nbsp;&nbsp;Shinhan DS |  | 331847  | 5343  | 4103  | 331631  | 8756  | 10996  |
| &nbsp;&nbsp;&nbsp;Shinhan Savings Bank |  | 245890  | 21533  | 22247  | 255650  | 17855  | 17310  |
| &nbsp;&nbsp;&nbsp;Shinhan Asset Trust Co., Ltd. |  | 196935  | 19638  | 19590  | 100626  | (320601) | (320675) |
| &nbsp;&nbsp;&nbsp;Shinhan Fund Partners Co., Ltd. |  | 74011  | 17109  | 17158  | 67420  | 15371  | 15310  |
| &nbsp;&nbsp;&nbsp;Shinhan REITs Management Co., Ltd. |  | 18581  | 5417  | 5427  | 26131  | 7688  | 7644  |
| &nbsp;&nbsp;&nbsp;Shinhan AI Co., Ltd. (\*4) |  | - | - | - | - | (1927) | (1928) |
| &nbsp;&nbsp;&nbsp;Shinhan Venture Investment Co., Ltd. |  | 46110  | 3789  | 3638  | 45542  | 3776  | 3931  |
| &nbsp;&nbsp;&nbsp;Shinhan EZ General Insurance Co., Ltd. |  | 153298  | (32309) | (35143) | 93894  | (17403) | (18035) |

---

(\*1) The summarized financial information of the consolidated subsidiaries is based on consolidated financial statements, if applicable.

(\*2) Trusts, beneficiary certificates, securitization special limited liability companies, associates and private equity investment specialists that are not actually operating their own business are excluded.

(\*3) This amount includes non-controlling interests.

(\*4) Shinhan AI Co., Ltd. was liquidated in the year ended December 31, 2024, and the amounts for the year ended December 31, 2024 represent those incurred prior to the liquidation.

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**7. <u>Investment in subsidiaries (continued)</u>**

(c) Change in the scope of consolidation

i) There are no major subsidiaries included in or excluded from the consolidated financial statements for the year ended December 31, 2025.

ii) Changes in consolidated subsidiaries for the year ended December 31, 2024 are as follows:

---

| | | |
|:---|:---|:---|
|  | &nbsp;&nbsp;**Company** | &nbsp;&nbsp;**Description** |
| &nbsp;&nbsp;Excluded | &nbsp;&nbsp;Shinhan AI Co., Ltd. | &nbsp;&nbsp;Liquidation |
| &nbsp;&nbsp;Excluded | &nbsp;&nbsp;PT Shinhan Asset Management Indonesia | &nbsp;&nbsp;Disposal |
| &nbsp;&nbsp;Excluded | &nbsp;&nbsp;SHINHAN ASSET MGT HK, LIMITED | &nbsp;&nbsp;Liquidation |

---

(\*) Subsidiaries such as trust, beneficiary certificate, corporate restructuring fund and private equity fund which are not actually operating their own business are excluded.

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**8. <u>Operating segments</u>**

(a) Segment information

General descriptions of operating segments as of December 31, 2025 are as follows:

---

| | |
|:---|:---|
| **Segment** | **Description** |
| Banking<br>| Credit to customers, lending to and receiving deposits from customers, and its accompanying work |
| Credit card | Sales of credit cards, short-term and long-term card loan services, installment financing, lease and its accompanying work  |
| Securities | Securities trading, consignment trading, underwriting and its accompanying work  |
| Insurance | Life insurance business, non-life insurance business and its accompanying work  |
| Credit | Facility rental, new technology business financing, others and its accompanying work |
| Others | Business segments that do not belong to the above segments, such as real estate trust, investment advisory services, venture business investment and other remaining business |

---

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**8. <u>Operating segments (continued)</u>**

(b) The operating income (expense) and net income by operating segment for the years ended December 31, 2025 and 2024 are as follows:

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** |
|  |  | **Banking** | **Credit card** | **Securities** | **Insurance** | **Credit** | **Others** | **Consolidation adjustment** | **Total** |
| &nbsp;&nbsp;&nbsp;Net interest income (expense) | W | 9332810  | 1947497  | 572266  | (146977) | 102274  | 77314  | (190728) | 11694456  |
| &nbsp;&nbsp;&nbsp;Net fees and commission income (expense) |  | 1051527  | 763885  | 690164  | (8814) | 22959  | 377488  | 24002  | 2921211  |
| &nbsp;&nbsp;&nbsp;Reversal of (provision for) credit loss allowance |  | (666420) | (911601) | (116592) | (4840) | (239571) | (62605) | (1336) | (2002965) |
| &nbsp;&nbsp;&nbsp;General and administrative expenses |  | (4260611) | (889822) | (804320) | (191106) | (65588) | (443479) | 252426  | (6402500) |
| &nbsp;&nbsp;&nbsp;Other income (expense), net |  | (279671) | (167895) | 146960  | 1110751  | 221419  | 325066  | (543475) | 813155  |
| &nbsp;&nbsp;&nbsp;Operating income (expense) |  | 5177635  | 742064  | 488478  | 759014  | 41493  | 273784  | (459111) | 7023357  |
| &nbsp;&nbsp;&nbsp;Equity method income (loss) |  | 14295  | 12794  | 32636  | (2428) | 96362  | 8249  | 59317 | 221225  |
| &nbsp;&nbsp;&nbsp;Income tax expense |  | 1250175  | 176969  | 104732  | 280406  | 28266  | 7813  | (3871) | 1844490  |
| &nbsp;&nbsp;&nbsp;Profit for the year | W | 3685246  | 584711  | 381605  | 475399  | 108273  | 275426  | (426141) | 5084519  |
| &nbsp;&nbsp;&nbsp;Controlling interest | W | 3684190  | 581251  | 381617  | 475399  | 108273  | 275426  | (534595) | 4971561  |
| &nbsp;&nbsp;&nbsp;Non-controlling interests |  | 1056  | 3460  | (12) | - | - | - | 108454  | 112958  |

---

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**8. <u>Operating segments (continued)</u>**

(b) The operating income (expense) and net income by operating segment for the years ended December 31, 2025 and 2024 are as follows (continued):

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
|  |  | **Banking** | **Credit card** | **Securities** | **Insurance** | **Credit** | **Others** | **Consolidation adjustment** | **Total** |
| &nbsp;&nbsp;&nbsp;Net interest income (expense) | W | 8988515  | 1931171  | 573375  | (135352) | 143672  | 92600  | (191679) | 11402302  |
| &nbsp;&nbsp;&nbsp;Net fees and commission income (expense) |  | 867909  | 934519  | 535910  | (4380) | 17442  | 336957  | 26517  | 2714874  |
| &nbsp;&nbsp;&nbsp;Reversal of (provision for) credit loss allowance |  | (425429) | (917239) | (136466) | (6237) | (151258) | (375991) | (654) | (2013274) |
| &nbsp;&nbsp;&nbsp;General and administrative expenses |  | (3983172) | (855125) | (786141) | (201994) | (65273) | (437691) | 213156  | (6116240) |
| &nbsp;&nbsp;&nbsp;Other income (expense), net |  | (507922) | (215670) | 95227  | 1055611  | 177677  | 548614  | (682529) | 471008  |
| &nbsp;&nbsp;&nbsp;Operating income (expense) |  | 4939901  | 877656  | 281905  | 707648  | 122260  | 164489  | (635189) | 6458670  |
| &nbsp;&nbsp;&nbsp;Equity method income (loss) |  | 9856  | (4053) | (558) | (894) | 25148  | (5453) | (47868) | (23822) |
| &nbsp;&nbsp;&nbsp;Income tax expense |  | 1040924  | 224731  | 54238  | 193041  | 27044  | 52899  | (121955) | 1470922  |
| &nbsp;&nbsp;&nbsp;Profit for the year | W | 3610084  | 671506  | 179160  | 510998  | 116948  | (124845) | (405681) | 4558170  |
| &nbsp;&nbsp;&nbsp;Controlling interest | W | 3609620  | 668392  | 179157  | 510998  | 116948  | (124845) | (510093) | 4450177  |
| &nbsp;&nbsp;&nbsp;Non-controlling interests |  | 464  | 3114  | 3  | - | - | - | 104412  | 107993  |

---

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**8. <u>Operating segments (continued)</u>**

(c) Net interest income from external customers by segment and inter-segment net interest income for the years ended December 31, 2025 and 2024 are as follows:

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** |
|  |  | **Banking** | **Credit card** | **Securities** | **Insurance** | **Credit** | **Others** | **Consolidation adjustment (\*)** | **Total** |
| Net interest income from: |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;External customers (\*) | W | 9330010  | 1997682  | 595111  | (142326) | 119698  | (1078) | (204641) | 11694456  |
| &nbsp;&nbsp;&nbsp;Inter-segment transactions |  | 2800  | (50185) | (22845) | (4651) | (17424) | 78392  | 13913  | - |
|  | W | 9332810  | 1947497  | 572266  | (146977) | 102274  | 77314  | (190728) | 11694456  |

---

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
|  |  | **Banking** | **Credit card** | **Securities** | **Insurance** | **Credit** | **Others** | **Consolidation adjustment (\*)** | **Total** |
| Net interest income from: |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;External customers (\*) | W | 8987390  | 1997334  | 596982  | (129874) | 170737  | 1207  | (221474) | 11402302  |
| &nbsp;&nbsp;&nbsp;Inter-segment transactions |  | 1125  | (66163) | (23607) | (5478) | (27065) | 91393  | 29795  | - |
|  | W | 8988515  | 1931171  | 573375  | (135352) | 143672  | 92600  | (191679) | 11402302  |

---

(\*) Consolidated adjustments to net interest income from external customers relate to the fair value measurement of securities and other assets arising from business combination accounting.

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**8. <u>Operating segments (continued)</u>**

(d) Net fee and commission income from external customers by segment and inter-segment net fees and commission income for the years ended December 31, 2025 and 2024 are as follows:

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** |
|  |  | **Banking** | **Credit card** | **Securities** | **Insurance** | **Credit** | **Others** | **Consolidation adjustment** | **Total** |
| &nbsp;&nbsp;&nbsp;Net fee and commission income from: |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;External customers | W | 1087979  | 817107  | 697178  | 1310  | 22216  | 295421  | - | 2921211  |
| &nbsp;&nbsp;&nbsp;Inter-segment transactions |  | (36452) | (53222) | (7014) | (10124) | 743  | 82067  | 24002  | - |
|  | W | 1051527  | 763885  | 690164  | (8814) | 22959  | 377488  | 24002  | 2921211  |

---

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
|  |  | **Banking** | **Credit card** | **Securities** | **Insurance** | **Credit** | **Others** | **Consolidation adjustment** | **Total** |
| &nbsp;&nbsp;&nbsp;Net fee and commission income from: |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;External customers | W | 911057  | 984884  | 541673  | 3561  | 15910  | 257789  | - | 2714874  |
| &nbsp;&nbsp;&nbsp;Inter-segment transactions |  | (43148) | (50365) | (5763) | (7941) | 1532  | 79168  | 26517  | - |
|  | W | 867909  | 934519  | 535910  | (4380) | 17442  | 336957  | 26517  | 2714874  |

---

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**8. <u>Operating segments (continued)</u>**

(e) Financial information of geographical area

i) Operating income from external customers for the years ended December 31, 2025 and 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  |  | **December 31, 2025** | **December 31, 2024** |
| Domestic | W | 5,642,133  | 5,180,020 |
| Overseas (\*) |  | 1,381,224  | 1,278,650 |
|  | W | 7,023,357  | 6,458,670 |

---

(\*) Vietnam and Japan are the countries where the related income from external customers are material. As of December 31, 2025, and 2024, operating income recognized for Vietnam amounted to W 332,114 million and W 332,717 million, respectively. For Japan, it amounted to W 256,027 million and W 218,393 million, respectively.

ii) Non-current assets as of December 31, 2025 and 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  |  | **December 31, 2025** | **December 31, 2024** |
| Domestic | W | 9,797,256  | 10,185,952 |
| Overseas |  | 860,708  | 419,469 |
|  | W | 10,657,964  | 10,605,421 |

---

(\*) Non-current assets comprise property and equipment, investment properties, and intangible assets.

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**9. <u>Cash and due from banks at amortized cost</u>**

(a) Cash and due from banks at amortized cost as of December 31, 2025 and 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  |  | **December 31, 2025** | **December 31, 2024** |
| Cash | W | 2882978 | 2296962 |
| Deposits denominated in Korean won: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Reserve deposits |  | 8164072  | 11594266  |
| &nbsp;&nbsp;&nbsp;&nbsp;Time deposits |  | 893222  | 2198645  |
| &nbsp;&nbsp;Certificate of deposit |  | 19434  | - |
| &nbsp;&nbsp;&nbsp;&nbsp;Other |  | 4286250  | 3365689  |
|  |  | 13362978 | 17158600  |
| Deposits denominated in foreign currency: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Deposits |  | 16942214  | 14934942  |
| &nbsp;&nbsp;&nbsp;&nbsp;Time deposits |  | 3908381  | 3956971  |
| &nbsp;&nbsp;&nbsp;&nbsp;Other |  | 2662154  | 2199579  |
|  |  | 23512749  | 21091492  |
| Allowance for credit losses |  | (16100) | (21342) |
|  | W | 39742605  | 40525712  |

---

(b) Restricted due from banks in accordance with Related Regulations or Acts as of December 31, 2025 and 2024 are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  |  | **December 31, 2025** | **December 31, 2024** | **Related Regulations or Acts** |
| Deposits denominated <br>in Korean won: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Reserve deposits | W | 8164072  | 11594266 | Article 55 of the Bank of Korea Act |
| &nbsp;&nbsp;&nbsp;&nbsp;Other |  | 1727588  | 1978415 | Article 74 of the Capital Markets and Financial Investment Business Act, etc. |
|  |  | 9891660  | 13572681 |  |
| Deposits denominated <br>in foreign currency |  | 8367341  | 11046189 | Articles of the Bank of Korea Act,<br>New York State Banking Act, derivatives related, etc. |
|  | W | 18259001  | 24618870 |  |

---

(c) The details of early redemptions of deposits measured at amortized cost during the year ended December 31, 2025 are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  |  | **Carrying amount (\*1)** | **Gain (loss) from redemption (\*2)** |
| Installment savings | W | 137975  | 1639  |
| Time deposits |  | 33186  | (6070) |

---

(\*1) The carrying amount includes accrued interest of W 65,737 million.

(\*2) During the year ended December 31, 2025, certain installment savings and time deposits were early redeemed due to the issuer's early termination and the closure of operations, respectively, and were derecognized.

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**10. <u>Financial assets at fair value through profit or loss</u>**

Financial assets at fair value through profit or loss as of December 31, 2025 and 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  |  | **December 31, 2025** | **December 31, 2024** |
| Debt instruments: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Governments  | W | 8933644  | 8983699  |
| &nbsp;&nbsp;&nbsp;&nbsp;Financial institutions |  | 8572717  | 11127785  |
| &nbsp;&nbsp;&nbsp;&nbsp;Corporations |  | 15340624  | 12579941  |
| &nbsp;&nbsp;&nbsp;&nbsp;Stocks with put option |  | 620258  | 691684  |
| &nbsp;&nbsp;&nbsp;&nbsp;Equity investment with put option |  | 5737916  | 5483075  |
| &nbsp;&nbsp;&nbsp;&nbsp;Beneficiary certificates |  | 16068876  | 14414681  |
| &nbsp;&nbsp;&nbsp;&nbsp;Commercial papers |  | 8605755  | 9270928  |
| &nbsp;&nbsp;&nbsp;&nbsp;CMA |  | 3694196  | 1613961  |
| &nbsp;&nbsp;&nbsp;&nbsp;Others (\*) |  | 3530206  | 2840070  |
|  |  | 71104192  | 67005824  |
| Equity instruments: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Stocks |  | 4370515  | 2954653  |
| &nbsp;&nbsp;&nbsp;&nbsp;Equity investment |  | 5981  | 6680  |
| &nbsp;&nbsp;&nbsp;&nbsp;Others |  | 492905  | 135995  |
|  |  | 4869401  | 3097328  |
| Gold/silver deposits |  | 623668  | 128297 |
|  | W | 76597261  | 70231449 |
| Other: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Loans at FVTPL |  | 1415254  | 1879946  |
| &nbsp;&nbsp;&nbsp;&nbsp;Due from banks at fair value |  | 40862  | 35450  |
|  | W | 78053377  | 72146845  |

---

(\*) As of December 31, 2025 and 2024, restricted deposits for customer deposit claims (trusts) amount to W 2,965,469 million and W 1,731,224 million, respectively.

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**11. <u>Derivatives</u>**

(a) The notional amounts of derivatives outstanding as of December 31, 2025 and 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  |  | **December 31, 2025** | **December 31, 2024** |
| **Foreign currency related:** |  |  |  |
| &nbsp;&nbsp;&nbsp;Over the counter: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Currency forwards | W | 186552883  | 167805176  |
| &nbsp;&nbsp;&nbsp;&nbsp;Currency swaps |  | 68522136  | 59641567  |
| &nbsp;&nbsp;&nbsp;&nbsp;Currency options |  | 3410253  | 2182530  |
|  |  | 258485272  | 229629273  |
| &nbsp;&nbsp;&nbsp;Exchange traded: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Currency futures |  | 1982556  | 1534764  |
|  |  | 260467828  | 231164037  |
| **Interest rates related:** |  |  |  |
| &nbsp;&nbsp;&nbsp;Over the counter: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest rate forwards and swaps |  | 65847009  | 57169341  |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest rate options |  | 926000  | 825057  |
|  |  | 66773009  | 57994398  |
| &nbsp;&nbsp;&nbsp;Exchange traded: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest rate futures |  | 3962031  | 4875687  |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest rate swaps (\*) |  | 175593544  | 142194805  |
|  |  | 179555575  | 147070492  |
|  |  | 246328584  | 205064890 |
| **Credit related:** |  |  |  |
| &nbsp;&nbsp;&nbsp;Over the counter: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Credit swaps |  | 5079897  | 4231106  |
| &nbsp;&nbsp;&nbsp;&nbsp;Total return swaps |  | 841964  | 809987  |
|  |  | 5921861  | 5041093 |
| **Equity related:** |  |  |  |
| &nbsp;&nbsp;&nbsp;Over the counter: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Equity swaps and forwards |  | 2811480  | 5975657  |
| &nbsp;&nbsp;&nbsp;&nbsp;Equity options |  | 2283749  | 2923962  |
|  |  | 5095229  | 8899619  |
| &nbsp;&nbsp;&nbsp;Exchange traded: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Equity futures |  | 1357692  | 1600342  |
| &nbsp;&nbsp;&nbsp;&nbsp;Equity options |  | 492549  | 452322  |
|  |  | 1850241  | 2052664  |
|  |  | 6945470  | 10952283  |
| **Commodity related:** |  |  |  |
| &nbsp;&nbsp;&nbsp;Over the counter: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Commodity swaps and forwards |  | 1698190 | 2121686  |
| &nbsp;&nbsp;&nbsp;Exchange traded: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Commodity futures |  | 249235  | 172899  |
|  |  | 1947425  | 2294585  |
| **Hedge:** |  |  |  |
| &nbsp;&nbsp;&nbsp;Currency forwards |  | 3713759  | 4345149  |
| &nbsp;&nbsp;&nbsp;Currency swaps |  | 9059479  | 7993851  |
| &nbsp;&nbsp;&nbsp;Interest rate forwards and swaps |  | 13612757  | 13219417  |
| &nbsp;&nbsp;&nbsp;Equity options |  | - | 18750  |
|  |  | 26385995  | 25577167  |
|  | W | 547997163  | 480094055  |

---

(\*) The notional amounts of derivatives outstanding that are to be settled in the 'Central Counter Party (CCP)'system.

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**11. <u>Derivatives (continued)</u>**

(b) Fair values of derivatives as of December 31, 2025 and 2024 are as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  |  | **December 31, 2025** | **December 31, 2025** | **December 31, 2024** | **December 31, 2024** |
|  |  | **Assets** | **Liabilities** | **Assets** | **Liabilities** |
| **Foreign currency related:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Over the counter: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Currency forwards | W | 3384263  | 2215089  | 5731971  | 3887398  |
| &nbsp;&nbsp;&nbsp;&nbsp;Currency swaps |  | 1703067  | 2625865  | 2299084  | 3823249  |
| &nbsp;&nbsp;&nbsp;&nbsp;Currency options |  | 9043  | 18497  | 24230  | 25700  |
|  |  | 5096373  | 4859451  | 8055285  | 7736347  |
| &nbsp;&nbsp;&nbsp;Exchange traded: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Currency futures |  | 107  | 3365  | 1527  | 828  |
|  |  | 5096480  | 4862816  | 8056812  | 7737175  |
| **Interest rates related:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Over the counter: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest rate forwards and swaps |  | 817433  | 754732  | 734284  | 859402  |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest rate options |  | - | 29468  | 1157  | 28907  |
|  |  | 817433  | 784200  | 735441  | 888309  |
| &nbsp;&nbsp;&nbsp;Exchange traded: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest rate futures |  | 1605  | 808  | 2929  | 675  |
|  |  | 819038  | 785008  | 738370  | 888984  |
| **Credit related:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Over the counter: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Credit swaps |  | 40643  | 7187  | 40325  | 5208  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total return swaps |  | 458469  | 6510  | 467352  | 4556  |
|  |  | 499112  | 13697  | 507677 | 9764 |
| **Equity related:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Over the counter: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Equity swap and forwards |  | 43121  | 48500  | 96841  | 137399  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Equity options |  | 5880  | 17480  | 95173  | 112088  |
|  |  | 49001  | 65980  | 192014  | 249487  |
| &nbsp;&nbsp;&nbsp;&nbsp;Exchange traded: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Equity futures |  | 10401  | 663  | 1228  | 13302  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Equity options |  | 43595  | 24835  | 66177  | 4274  |
|  |  | 53996  | 25498  | 67405  | 17576  |
|  |  | 102997  | 91478  | 259419 | 267063 |
| **Commodity related:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Over the counter: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Commodity swaps and forwards |  | 11044  | 110854  | 914 | 129833 |
| &nbsp;&nbsp;&nbsp;&nbsp;Exchange traded: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Commodity futures |  | 8188  | 8550  | 13704 | 3642 |
|  |  | 19232  | 119404  | 14618 | 133475 |
| **Hedge:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Currency forwards |  | 18997  | 176304  | 12100  | 213015  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Currency swaps |  | 521120  | 344888  | 539015  | 181413  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest rate forwards and swaps |  | 76974  | 627251  | 151246  | 623702  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Equity options |  | - | - | - | 3941  |
|  |  | 617091  | 1148443  | 702361  | 1022071  |
|  | W | 7153950  | 7020846  | 10279257 | 10058532 |

---

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**11. <u>Derivatives (continued)</u>**

(c) Gains or losses on valuation of derivatives for the years ended December 31, 2025 and 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  |  | **December 31, 2025** | **December 31, 2024** |
| **Foreign currency related:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Over the counter: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Currency forwards | W | 273413  | 1734704  |
| &nbsp;&nbsp;&nbsp;&nbsp; Currency swaps |  | (28745) | (1739525) |
| &nbsp;&nbsp;&nbsp;&nbsp; Currency options  |  | 7388  | 4392  |
|  |  | 252056  | (429) |
| &nbsp;&nbsp;&nbsp;&nbsp;Exchange traded: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Currency futures |  | (3258) | 804  |
|  |  | 248798  | 375  |
| **Interest rates related:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Over the counter: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest rate forwards and swaps |  | 187839  | 115234  |
| &nbsp;&nbsp;&nbsp;&nbsp; Interest rate options  |  | 1476  | (2413) |
|  |  | 189315  | 112821  |
| &nbsp;&nbsp;&nbsp;&nbsp;Exchange traded: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Interest rate futures and others |  | 152  | 2253  |
|  |  | 189467  | 115074  |
| **Credit related:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Over the counter: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Credit swaps |  | (5507) | 44223 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total return swaps |  | 9912  | - |
|  |  | 4405  | 44223 |
| **Equity related:** |  |  |  |
| &nbsp;&nbsp;Over the counter: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Equity swap and forwards |  | 30008  | (61607) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Equity options |  | 6807  | 28708  |
|  |  | 36815  | (32899) |
| &nbsp;&nbsp;Exchange traded: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Equity futures |  | 9935  | (12093) |
| &nbsp;&nbsp;&nbsp;&nbsp; Equity options |  | (5036) | 1085  |
|  |  | 4899  | (11008) |
|  |  | 41714  | (43907) |
| **Commodity related:** |  |  |  |
| &nbsp;&nbsp;Over the counter: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Commodity swaps and forwards |  | 26502  | (43643) |
| &nbsp;&nbsp;&nbsp;&nbsp;Exchange traded: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Commodity futures |  | (362) | 10062  |
|  |  | 26140  | (33581) |
| **Hedge** |  | (264572) | 242379  |
|  | W | 245952  | 324563  |

---

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**11. <u>Derivatives (continued)</u>**

(d) Gains and losses related to hedge

i) The amounts recognized in profit or loss and the related account categories arising from hedging ineffectiveness of fair value hedges for the years ended December 31, 2025 and 2024 are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  |  | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** |
|  |  | **Gains and losses on hedged items designated in fair value hedges** | **Gains and losses on hedging instruments designated as fair value hedges**  | **Hedging ineffectiveness recognized in profit**<br>**or loss (\*2)** |
| &nbsp;&nbsp;**Fair value hedges:** |  |  |  |  |
| &nbsp;&nbsp;Interest rate risk (\*1) | W | (120061) | 138277  | 18216  |
| &nbsp;&nbsp;Foreign exchange risk (\*1) |  | 278  | 14686  | 14964  |
| &nbsp;&nbsp;Other price risk (\*1) |  | (4357) | 3941  | (416) |
|  | W | (124140) | 156904  | 32764  |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  |  | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
|  |  | **Gains and losses on hedged items designated in fair value hedges** | **Gains and losses on hedging instruments designated as fair value hedges**  | **Hedging ineffectiveness recognized in profit**<br>**or loss (\*2)** |
| &nbsp;&nbsp;**Fair value hedges:** |  |  |  |  |
| &nbsp;&nbsp;Interest rate risk (\*1) | W | (45264) | 42787 | (2477) |
| &nbsp;&nbsp;Foreign exchange risk (\*1) |  | 44094  | (46382) | (2288) |
| &nbsp;&nbsp;Other price risk (\*1) |  | (1548) | 1109  | (439) |
|  | W | (2718) | (2486) | (5204) |

---

(\*1) The related account categories are presented in the amounts of interest rate swap assets and liabilities, currency forward assets and liabilities, and equity option liabilities.

(\*2) Hedging ineffectiveness represents the difference between the changes in fair value of the hedging instruments and the hedged items.

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**11. <u>Derivatives (continued)</u>**

(d) Gains and losses related to hedge (continued)

ii) Due to the hedging ineffectiveness of cash flow risk and net investment in foreign operations during the year, the amounts recognized in the profit or loss and other comprehensive income are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  |  | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** |
|  |  | **Gains (losses) on hedges recognized in other comprehensive income** | **Hedging ineffectiveness recognized in profit**<br>**or loss (\*2)** | **Amounts reclassified from cash flow hedge reserve to profit or loss** |
| &nbsp;&nbsp;**Cash flow hedges:** |  |  |  |  |
| &nbsp;&nbsp;Interest rate risk (\*1) | W | (209145) | (8743) | 1567  |
| &nbsp;&nbsp;Foreign exchange risk (\*1) |  | (35688) | 2776  | (160443) |
| &nbsp;&nbsp;Discontinuation of <br> cash flow hedges |  | 1532  | - | (28) |
| &nbsp;&nbsp;&nbsp;&nbsp;**Hedge of net investments:** |  |  |  |  |
| &nbsp;&nbsp;Foreign exchange risk (\*1) |  | 59096  | 21422  | - |
|  | W | (184205) | 15455  | (158904) |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  |  | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
|  |  | **Gains (losses) on hedges recognized in other comprehensive income** | **Hedging ineffectiveness recognized in profit**<br>**or loss (\*2)** | **Amounts reclassified from cash flow hedge reserve to profit or loss** |
| &nbsp;&nbsp;**Cash flow hedges:** |  |  |  |  |
| Interest rate risk (\*1) | W | 89293  | (5034) | (151) |
| &nbsp;&nbsp;Foreign exchange risk (\*1) |  | 2548  | (6184) | 210424  |
| &nbsp;&nbsp;Discontinuation of <br> cash flow hedges |  | (39621) | - | 47957 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Hedge of net investments:** |  |  |  |  |
| &nbsp;&nbsp;Foreign exchange risk (\*1) |  | (221221) | (1191) | - |
|  | W | (169001) | (12409) | 258230  |

---

(\*1) The related account categories are presented in the amounts of interest rate swap assets and liabilities, currency forwards assets and liabilities and borrowings.

(\*2) Hedging ineffectiveness represents the difference between the changes in fair value of the hedging instruments and the hedged items.

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**11. <u>Derivatives (continued)</u>**

(e) Effect of hedge accounting on the consolidated financial statements, statement of comprehensive income, statement of changes in equity

*i) Hedging purpose and strategy*

The Group transacts with derivative financial instruments to hedge its interest rate risk, currency risk and stock price fluctuation risk arising from the assets and liabilities of the Group. The Group applies the fair value hedge accounting for the changes in the market interest rates, foreign exchange rates and stock price of the Korean won structured notes, foreign currency financial debentures, Korean won structured deposits, foreign currency investment receivables and beneficiary securities in foreign currency; and cash flow hedge accounting for forward interest rate, interest rate swaps, forward currency and currency swaps to hedge cash flow risk due to interest rates and foreign exchange rates of the Korean won debt, foreign currency debt, foreign currency structured deposits, the Korean won bonds and foreign currency bonds, etc. In addition, in order to hedge the exchange rate risk of the net investment in overseas business, the Group applies the net investment hedge accounting for foreign operations using currency forward and non-derivative financial instruments.

ii) The notional amounts and the average hedge ratios for hedging instruments as of December 31, 2025 and 2024 are as follows:

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** |
|  |  | **Less than**<br>**1 year** | **1~2**<br>**years** | **2~3**<br>**years** | **3~4**<br>**years** | **4~5** <br>**years** | **More than 5 years** | **Total** |
| &nbsp;&nbsp;&nbsp;**Interest risk:** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Notional values: | W | 2485060  | 2219475  | 2553701  | 2008399  | 450481  | 3895641  | 13612757  |
| &nbsp;&nbsp;&nbsp; Average price condition (\*1) |  | 1.86% | 1.60% | 1.75% | 1.73% | 1.14% | 0.42% | 1.34% |
| &nbsp;&nbsp;&nbsp; Average hedge ratio: |  | 100% | 100% | 100% | 100% | 100% | 100% | 100% |
| **Exchange risk: (\*2)** |  |  |  |  |  |  |  |  |
| Notional values: |  | 4344598  | 3288511  | 3353841  | 1941689  | 992587  | 747109  | 14668335  |
| &nbsp;&nbsp;Average hedge ratio: |  | 100% | 100% | 100% | 100% | 100% | 100% | 100% |

---

(\*1) Interest rate swaps consist of 3M CD, USD SOFR, 3M USD Libor, 3M Euribor, 3M AUD Bond and 3M JPY TONAR.

(\*2) The average exchange rates of net investment hedge instruments are USD/KRW 1,307.41, JPY/KRW 9.43, EUR/KRW 1,487.33, GBP/KRW 1,568.02, AUD/KRW 896.37, CAD/KRW 999.37 and SEK/KRW 131.64.

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**11. <u>Derivatives (continued)</u>**

(e) Effect of hedge accounting on the consolidated financial statements, statement of comprehensive income, statement of changes in equity (continued)

ii) The notional amounts and the average hedge ratios for hedging instruments as of December 31, 2025 and 2024 are as follows (continued):

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
|  |  | **Less than**<br>**1 year** | **1~2**<br>**years** | **2~3**<br>**years** | **3~4**<br>**years** | **4~5** <br>**years** | **More than 5 years** | **Total** |
| &nbsp;&nbsp;&nbsp;**Interest risk:** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Notional values: | W | 910440  | 2621365  | 1943818  | 2350027  | 1161927  | 4231840  | 13219417  |
| &nbsp;&nbsp;&nbsp; Average price condition (\*1) |  | 3.43% | 3.07% | 4.08% | 4.82% | 4.17% | 3.60% | 3.82% |
| &nbsp;&nbsp;&nbsp; Average hedge ratio: |  | 100% | 100% | 100% | 100% | 100% | 100% | 100% |
| **Exchange risk: (\*2)** |  |  |  |  |  |  |  |  |
| Notional values: |  | 4319632  | 2421806  | 3072483  | 2870442  | 1059147  | 447703  | 14191213  |
| &nbsp;&nbsp;Average hedge ratio: |  | 100% | 100% | 100% | 100% | 100% | 100% | 100% |
| &nbsp;&nbsp;**Other price risk: (\*3)** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Notional values: |  | - | - | 18750  | - | - | - | 18750  |
| &nbsp;&nbsp;Average hedge ratio: |  | - | - | 100% | - | - | - | 100% |

---

(\*1) Interest rate swaps consist of 3M CD, USD SOFR, 3M Euribor, and 3M AUD Bond.

(\*2) The average exchange rates of net investment hedge instruments are USD/KRW 1,280.52, JPY/KRW 9.25, EUR/KRW 1,402.37, GBP/KRW 1,561.57, AUD/KRW 892.94, CAD/KRW 991.06, CNY/KRW 189.50, SEK/KRW 127.54.

(\*3) The equity option, which has an exercise price of W 324,027.

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**11. <u>Derivatives (continued)</u>**

(e) Effect of hedge accounting on the consolidated financial statements, statement of comprehensive income, statement of changes in equity (continued)

iii) The effect of hedging derivatives on the consolidated statements of financial position, comprehensive income, and changes in equity as of December 31, 2025 and 2024 is as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  |  | &nbsp;&nbsp;&nbsp;&nbsp;**December 31, 2025** | &nbsp;&nbsp;&nbsp;&nbsp;**December 31, 2025** | &nbsp;&nbsp;&nbsp;&nbsp;**December 31, 2025** | &nbsp;&nbsp;&nbsp;&nbsp;**December 31, 2025** |
|  |  | **Notional amount** | **Carrying amount of assets (\*)** | **Carrying amount of liabilities (\*)** | &nbsp;&nbsp;&nbsp;&nbsp;**Changes in fair value in the period** |
| **Fair value hedges** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest rate forward and swap | W | 10339461  | 45898  | 431007  | 138277  |
| &nbsp;&nbsp;&nbsp;&nbsp;Currency forward |  | 434282  | 1079  | 14708  | 14686  |
| &nbsp;&nbsp;&nbsp;&nbsp;Equity options |  | - | - | - | 3941  |
| **Cash flow hedges** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Interest rate swap |  | 3273296  | 31076  | 196244  | (214598) |
| &nbsp;&nbsp;&nbsp;&nbsp; Currency swap |  | 9059478  | 521120  | 344888  | (218169) |
| &nbsp;&nbsp;&nbsp;&nbsp; Currency forward |  | 1898541  | 1104  | 161596  | 34038  |
| &nbsp;&nbsp;**Hedge of net investments in foreign operations** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Currency forward |  | 1380935  | 16814  | - | 51154  |
| &nbsp;&nbsp;&nbsp;&nbsp; Borrowings |  | 1895100  | - | 1891783  | 29364  |

---

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**11. <u>Derivatives (continued)</u>**

(e) Effect of hedge accounting on the consolidated financial statements, statement of comprehensive income, statement of changes in equity (continued)

(iii) The effect of hedging derivatives on the consolidated statements of financial position, comprehensive income, and changes in equity as of December 31, 2025 and 2024 is as follows (continued):

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  |  | &nbsp;&nbsp;&nbsp;&nbsp;**December 31, 2024** | &nbsp;&nbsp;&nbsp;&nbsp;**December 31, 2024** | &nbsp;&nbsp;&nbsp;&nbsp;**December 31, 2024** | &nbsp;&nbsp;&nbsp;&nbsp;**December 31, 2024** |
|  |  | **Notional amount** | **Carrying amount of assets (\*)** | **Carrying amount of liabilities (\*)** | &nbsp;&nbsp;&nbsp;&nbsp;**Changes in fair value in the period** |
| **Fair value hedges** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest rate forward and swap | W | 10347033  | 57685  | 579563  | 42787  |
| &nbsp;&nbsp;&nbsp;&nbsp;Currency forward |  | 429939  | - | 39395  | (46382) |
| &nbsp;&nbsp;&nbsp;&nbsp;Equity options |  | 18750  | - | 3941  | 1109  |
| **Cash flow hedges** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Interest rate swap |  | 2872383  | 93562  | 44139  | 60694  |
| &nbsp;&nbsp;&nbsp;&nbsp; Currency swap |  | 7993851  | 539015  | 181413  | 314114  |
| &nbsp;&nbsp;&nbsp;&nbsp; Currency forward |  | 1723440  | 2087  | 138694  | (104727) |
| &nbsp;&nbsp;**Hedge of net investments in foreign operations** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Currency forward |  | 2191770  | 10013  | 34926  | (41071) |
| &nbsp;&nbsp;&nbsp;&nbsp; Borrowings |  | 1852212  | - | 1848316  | (181341) |

---

(\*) The related account categories are presented as interest rate swap assets / liabilities and currency forward assets / liabilities etc.

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**11. <u>Derivatives (continued)</u>**

(e) Effect of hedge accounting on the consolidated financial statements, statement of comprehensive income, statement of changes in equity (continued)

iv) The effect of hedged items on the consolidated statements of financial position, comprehensive income, and changes in equity as of December 31, 2025 and 2024 is as follows:

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** |
|  |  | **Carrying amount of assets (\*)** | **Carrying amount of liabilities (\*)** | **Assets of Cumulative fair value hedge adjustment** | &nbsp;&nbsp;&nbsp;&nbsp;**Liabilities of Cumulative fair value hedge adjustment** | **Changes of fair value in the year** | **Cash flow hedge reserve** | **Foreign currency translation reserves** |
| **Fair value hedges** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Interest rate risk |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Borrowings and others | W | 1217304  | 8984247  | (7991) | (373328) | (120061) | - | - |
| &nbsp;&nbsp;Foreign exchange risk |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Securities in foreign currency |  | 380113  | - | - | - | 278  | - | - |
| Other price risk |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Loans |  | - | - | (5905) | - | (4357) | - | - |
| **Cash flow hedges** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Interest rate risk |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Debentures in won and debentures in foreign currency |  | 438011  | 349941  | - | - | 2303  | (187801) | - |
| &nbsp;&nbsp;&nbsp;&nbsp; Foreign exchange risk |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Debentures in foreign currency and loans in foreign currency |  | 3629809  | 6030836  | - | - | 234512  | (57429) | - |
| &nbsp;&nbsp;**Hedge of net investments in foreign operations** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Foreign exchange risk |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net assets in foreign operation |  | - | - | - | - | (59096) | - | 125194  |

---

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**11. <u>Derivatives (continued)</u>**

(e) Effect of hedge accounting on the consolidated financial statements, statement of comprehensive income, statement of changes in equity (continued)

iv) The effect of hedged items on the consolidated statements of financial position, comprehensive income, and changes in equity as of December 31, 2025 and 2024 is as follows (continued):

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
|  |  | **Carrying amount of assets (\*)** | **Carrying amount of liabilities (\*)** | **Assets of Cumulative fair value hedge adjustment** | &nbsp;&nbsp;&nbsp;&nbsp;**Liabilities of Cumulative fair value hedge adjustment** | **Changes of fair value in the year** | **Cash flow hedge reserve** | **Foreign currency translation reserves** |
| **Fair value hedges** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Interest rate risk |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Borrowings and others | W | 996275 | 9167678 | 11271 | (540967) | (45264) | - | - |
| &nbsp;&nbsp;Foreign exchange risk |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Securities in foreign currency |  | 480273 | - | - | - | 44094 | - | - |
| Other price risk |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Loans |  | 5809 | - | (1548) | - | (1548) | - | - |
| **Cash flow hedges** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Interest rate risk |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Debentures in won and debentures in foreign currency |  | 357441 | 749708 | - | - | (3449) | 25943 | - |
| &nbsp;&nbsp;&nbsp;&nbsp; Foreign exchange risk |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Debentures in foreign currency and loans in foreign currency |  | 2971800 | 5045127 | - | - | 773828 | (8638) | - |
| &nbsp;&nbsp;**Hedge of net investments in foreign operations** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Foreign exchange risk |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net assets in foreign operation |  | - | - | - | - | 221221 | - | 184291 |

---

(\*) The related account categories are presented in the amounts of borrowings, bonds, and others.

*ⅴ)* The effect of credit risk mitigation for derivatives, measured based on collateral held, including deposits and securities, is W 1,550,509 million and W 1,614,291 million as of December 31, 2025 and 2024, respectively.

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**12. <u>Securities at fair value through other comprehensive income and securities at amortized cost</u>** 

(a) Details of securities at FVOCI and securities at amortized cost as of December 31, 2025 and 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  |  | **December 31, 2025** | **December 31, 2024** |
| &nbsp;&nbsp;**Securities at FVOCI:** |  |  |  |
| Debt securities: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Government bonds | W | 44038340  | 42463118  |
| &nbsp;&nbsp;&nbsp;&nbsp;Financial institutions bonds |  | 35435282  | 25983405  |
| &nbsp;&nbsp;&nbsp;&nbsp;Corporate bonds and others |  | 21809284  | 23569687  |
|  |  | 101282906  | 92016210  |
| Equity securities (\*): |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Stocks |  | 1830922  | 1594019  |
| &nbsp;&nbsp;&nbsp;&nbsp;Equity investments |  | 594  | 4367  |
| &nbsp;&nbsp;&nbsp;&nbsp;Others |  | 102528  | 190773  |
|  |  | 1934044  | 1789159  |
|  |  | 103216950  | 93805369  |
| &nbsp;&nbsp;**Securities at amortized cost:** |  |  |  |
| Debt securities: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Government bonds |  | 22779176  | 21808057  |
| &nbsp;&nbsp;&nbsp;&nbsp;Financial institutions bonds |  | 1837790  | 3787661  |
| &nbsp;&nbsp;&nbsp;&nbsp;Corporate bonds and others |  | 7327402  | 7720281  |
|  |  | 31944368  | 33315999  |
|  | W | 135161318  | 127121368  |

---

(\*) The equity securities are designated as FVOCI, as the Group has exercised the FVOCI option for reasons including policy-driven holding requirements.

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**12. <u>Securities at fair value through other comprehensive income and securities at amortized cost (continued)</u>**

(b) Changes in carrying amount of debt securities at fair value through other comprehensive income and securities at amortized cost for the years ended December 31, 2025 and 2024 are as follows:

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** |
|  |  | &nbsp;&nbsp;**Debt securities at FVOCI** | &nbsp;&nbsp;**Debt securities at FVOCI** | &nbsp;&nbsp;**Debt securities at FVOCI** | **Debt securities at amortized cost** | **Debt securities at amortized cost** | **Debt securities at amortized cost** |
|  |  | **12-month expected**<br> **credit losses** | **Lifetime expected**<br> **credit losses** | **Total** | &nbsp;&nbsp;**12-month expected** <br>**credit losses** | **Lifetime expected** <br>**credit losses** | **Total** |
| &nbsp;&nbsp;&nbsp;Beginning balance | W | 91955452  | 60758  | 92016210  | 33322543  | 3644  | 33326187  |
| &nbsp;&nbsp;&nbsp;Transfer (from) to 12-month expected credit losses |  | 5276  | (5276) | - | - | - | - |
| &nbsp;&nbsp;&nbsp;Transfer (from) to lifetime expected credit losses |  | (2939) | 2939  | - | - | - | - |
| &nbsp;&nbsp;&nbsp;Net increase and decrease (\*) |  | 9298286  | (31590) | 9266696  | (1369484) | (3644) | (1373128) |
| Ending balance | W | 101256075  | 26831  | 101282906  | 31953059  | - | 31953059  |

---

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
|  |  | &nbsp;&nbsp;**Debt securities at FVOCI** | &nbsp;&nbsp;**Debt securities at FVOCI** | &nbsp;&nbsp;**Debt securities at FVOCI** | **Debt securities at amortized cost** | **Debt securities at amortized cost** | **Debt securities at amortized cost** |
|  |  | **12-month expected**<br> **credit losses** | **Lifetime expected**<br> **credit losses** | **Total** | &nbsp;&nbsp;**12-month expected** <br>**credit losses** | **Lifetime expected** <br>**credit losses** | **Total** |
| &nbsp;&nbsp;&nbsp;Beginning balance | W | 88545051 | 91949 | 88637000 | 35690387 | 7523 | 35697910 |
| &nbsp;&nbsp;&nbsp;Transfer (from) to 12-month expected credit losses |  | 3798 | (3798) | - | - | - | - |
| &nbsp;&nbsp;&nbsp;Transfer (from) to lifetime expected credit losses |  | - | - | - | - | - | - |
| &nbsp;&nbsp;&nbsp;Net increase and decrease (\*) |  | 3406603 | (27393) | 3379210 | (2367844) | (3879) | (2371723) |
| Ending balance | W | 91955452 | 60758 | 92016210 | 33322543 | 3644 | 33326187 |

---

(\*) Includes the effects of purchases, disposals, redemptions, valuations, changes in foreign exchange rates, and the amortization of fair value adjustments recognized through business combination accounting, among others.

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**12. <u>Securities at fair value through other comprehensive income and securities at amortized cost (continued)</u>**

(c) Changes in allowance for credit loss of debt securities at fair value through other comprehensive income and securities at amortized cost for the years ended December 31, 2025 and 2024 are as follows:

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** |
|  |  | &nbsp;&nbsp;**Debt securities at FVOCI** | &nbsp;&nbsp;**Debt securities at FVOCI** | &nbsp;&nbsp;**Debt securities at FVOCI** | **Debt securities at amortized cost** | **Debt securities at amortized cost** | **Debt securities at amortized cost** |
|  |  | **12-month expected credit losses** | **Lifetime expected credit losses** | **Total** | &nbsp;&nbsp;**12-month expected credit losses** | **Lifetime expected credit losses** | **Total** |
| &nbsp;&nbsp;&nbsp;Beginning balance | W | 38250  | 96  | 38346  | 10137  | 51  | 10188  |
| &nbsp;&nbsp;&nbsp;Transfer (from)to 12-month expected credit losses |  | 17  | (17) | - | - | - | - |
| &nbsp;&nbsp;&nbsp;Transfer (from)to lifetime expected credit losses |  | (3) | 3  | - | - | - | - |
| &nbsp;&nbsp;&nbsp;Provision (Reversal) |  | 23479  | 2437  | 25916  | (1196) | (47) | (1243) |
| &nbsp;&nbsp;&nbsp;Disposal and others (\*) |  | (3981) | 20  | (3961) | (250) | (4) | (254) |
| Ending balance | W | 57762  | 2539  | 60301  | 8691  | - | 8691  |

---

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
|  |  | &nbsp;&nbsp;**Debt securities at FVOCI** | &nbsp;&nbsp;**Debt securities at FVOCI** | &nbsp;&nbsp;**Debt securities at FVOCI** | **Debt securities at amortized cost** | **Debt securities at amortized cost** | **Debt securities at amortized cost** |
|  |  | **12-month expected credit losses** | **Lifetime expected credit losses** | **Total** | &nbsp;&nbsp;**12-month expected credit losses** | **Lifetime expected credit losses** | **Total** |
| &nbsp;&nbsp;&nbsp;Beginning balance | W | 41568 | 909 | 42477 | 11283 | 140 | 11423 |
| &nbsp;&nbsp;&nbsp;Transfer (from)to 12-month expected credit losses |  | 14 | (14) | - | - | - | - |
| &nbsp;&nbsp;&nbsp;Transfer (from)to lifetime expected credit losses |  | - | - | - | - | - | - |
| &nbsp;&nbsp;&nbsp;Provision (Reversal) |  | (2279) | (420) | (2699) | (1515) | (97) | (1612) |
| &nbsp;&nbsp;&nbsp;Disposal and others (\*) |  | (1053) | (379) | (1432) | 369  | 8  | 377  |
| Ending balance | W | 38250  | 96  | 38346  | 10137  | 51  | 10188  |

---

(\*) Includes the effects of restructuring of loans, debt-to-equity swaps, and changes in foreign exchange rates, among others.

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**12. <u>Securities at fair value through other comprehensive income and securities at amortized cost (continued)</u>**

(d) Gains and losses on disposal of securities at fair value through other comprehensive income and securities at amortized cost for the years ended December 31, 2025 and 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  |  | **December 31, 2025** | **December 31, 2024** |
| &nbsp;&nbsp;Gain on disposal of securities at FVOCI | W | 287564  | 197708  |
| &nbsp;&nbsp;Loss on disposal of securities at FVOCI |  | (93952) | (137448) |
| &nbsp;&nbsp;Gain on disposal of securities at amortized cost (\*) |  | 2  | - |
| &nbsp;&nbsp;Loss on disposal of securities at amortized cost (\*) |  | (58) | (23155) |
|  | W | 193556  | 37105  |

---

(\*) The disposal of securities measured at amortized cost was driven by the exercise of early redemption options by the issuers and by the objective of securing additional asset duration for asset-liability management in response to changes in the interest rate environment.

(e) Income or loss on equity securities at fair value through other comprehensive income

i) The Group recognized dividends, amounting to W 71,328 million and W 86,107 million, related to equity securities designated at fair value through other comprehensive income for the years ended December 31, 2025 and 2024, respectively.

ii) The details of disposal of equity securities designated at fair value through other comprehensive income for the years ended December 31, 2025 and 2024 are as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  |  | **Fair value at the date of disposal** | **Fair value at the date of disposal** | **Cumulative net gain (loss) at the time of disposal** | **Cumulative net gain (loss) at the time of disposal** |
|  |  | **December 31,** <br>**2025** | **December 31, 2024** | **December 31,** <br>**2025** | **December 31, 2024** |
| &nbsp;&nbsp;Stocks | W | 155004  | 106810 | 4467  | 9429 |
| &nbsp;&nbsp;Contingent convertible bonds |  | 1687  | 3023 | 11  | 5 |
|  | W | 156691  | 109833 | 4478  | 9434 |

---

(\*) The reason for the disposal of stocks at fair value through other comprehensive income is the disposal of stocks acquired through debt-to-equity swaps, among others.

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**13. <u>Loans at amortized cost, etc.</u>**

(a) The composition of loans at amortized cost by customer as of December 31, 2025 and 2024 is as follows:

---

| | | | |
|:---|:---|:---|:---|
|  |  | &nbsp;&nbsp;**December 31, 2025** | &nbsp;&nbsp;**December 31, 2024** |
| &nbsp;&nbsp;&nbsp;&nbsp;Retail loans | &nbsp;&nbsp;W | &nbsp;&nbsp;173568321 | &nbsp;&nbsp;166140123  |
| &nbsp;&nbsp;&nbsp;&nbsp;Corporate loans (\*) |  | &nbsp;&nbsp;259593754 | &nbsp;&nbsp;251011516  |
| &nbsp;&nbsp;&nbsp;&nbsp;Public and other loans |  | &nbsp;&nbsp;4845465  | &nbsp;&nbsp;5253071  |
| &nbsp;&nbsp;&nbsp;&nbsp;Loans between banks |  | &nbsp;&nbsp;1691536  | &nbsp;&nbsp;1946442  |
| &nbsp;&nbsp;&nbsp;&nbsp;Credit card receivables |  | &nbsp;&nbsp;28653978  | &nbsp;&nbsp;28894371  |
|  |  | &nbsp;&nbsp;468353054  | &nbsp;&nbsp;453245523  |
| &nbsp;&nbsp;&nbsp;&nbsp;Discount |  | &nbsp;&nbsp;(26251) | &nbsp;&nbsp;(29923) |
| &nbsp;&nbsp;&nbsp;&nbsp;Deferred loan origination costs |  | &nbsp;&nbsp;727749  | &nbsp;&nbsp;645569  |
|  |  | &nbsp;&nbsp;469054552  | &nbsp;&nbsp;453861169  |
| &nbsp;&nbsp;&nbsp;&nbsp;Less: Allowance for credit loss |  | &nbsp;&nbsp;(4280672) | &nbsp;&nbsp;(4565931) |
|  | &nbsp;&nbsp;W | &nbsp;&nbsp;464773880  | &nbsp;&nbsp;449295238  |

---

(\*) Includes SOHO loans.

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**13. <u>Loans at amortized cost, etc. (continued)</u>**

(b) Changes in the carrying amount of loans at amortized cost, etc. for the years ended December 31, 2025 and 2024 are as follows:

*i) Loans at amortized cost* 

---

| | | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** |
|  |  | **Retail** | **Retail** | **Retail** | **Corporate** | **Corporate** | **Corporate** | **Credit card** | **Credit card** | **Credit card** | **Others** | **Others** | **Others** | **Others** |
|  |  | **12-month expected credit losses** | **Lifetime expected credit** <br>**losses** | **Impaired financial asset**  | **12-month expected credit losses** | **Lifetime expected credit losses** | **Impaired financial asset** | **12-month expected credit losses** | **Lifetime expected credit losses** | **Impaired financial**<br> **asset** | **12-month expected credit losses** | **Lifetime expected credit losses** | **Impaired financial** <br>**asset** | **Total** |
| &nbsp;&nbsp;Beginning balance  | W | 153512220  | 12364744  | 904376  | 199978305  | 49062758  | 2158953  | 24605360  | 3606533  | 642990  | 5982867  | 1026076  | 15987  | 453861169  |
| &nbsp;&nbsp;Transfer (from) to 12-month expected credit losses |  | 4966815  | (4952706) | (14109) | 11474546  | (11453191) | (21355) | 1040384  | (1040209) | (175) | 127708  | (127708) | - | - |
| &nbsp;&nbsp;Transfer (from) to lifetime expected credit losses |  | (4600026) | 4678174  | (78148) | (15753286) | 16008648  | (255362) | (1145956) | 1146484  | (528) | (214090) | 214091  | (1) | - |
| &nbsp;&nbsp;Transfer (from) to credit- impaired financial assets |  | (450753) | (296548) | 747301  | (843905) | (670277) | 1514182  | (369466) | (357902) | 727368  | (10524) | (920) | 11444  | - |
| &nbsp;&nbsp;Net increase and decrease (\*1) |  | 10479493  | (2351966) | 1694  | 10956888  | (1204297) | 663429  | 968671  | (318368) | 450990  | (675876) | (63762) | 6175  | 18913071  |
| &nbsp;&nbsp;Charge off (\*2) |  | - | - | (373347) | - | - | (833199) | - | - | (806961) | - | - | (14410) | (2027917) |
| &nbsp;&nbsp;Disposal  |  | - | (2672) | (241633) | (9998) | (57522) | (839847) | - | - | (532002) | - | - | (8097) | (1691771) |
| Ending balance | W | 163907749 | 9439026  | 946134  | 205802550  | 51686119  | 2386801  | 25098993  | 3036538  | 481682  | 5210085  | 1047777  | 11098  | 469054552  |

---

(\*1) Includes the effects of the issuance, collection, restructuring of loans, debt-to-equity swaps, and changes in foreign exchange rates, among others.

(\*2) The amount of uncollected loans currently in recovery (principal and interest) is W 10,682,802 million, which is written off as of December 31, 2025.

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**13. <u>Loans at amortized cost, etc. (continued)</u>**

(b) Changes in the carrying amount of loans at amortized cost, etc. for the years ended December 31, 2025 and 2024 are as follows (continued):

*ii) Due from banks at amortized cost and other financial assets* 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  |  | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** |
|  |  | **12-month expected** <br>**credit losses** | **Lifetime expected**<br> **credit losses** | **Impaired financial asset** | **Total** |
| &nbsp;&nbsp;Beginning balance  | W | 61488945  | 235252  | 217158  | 61941355  |
| &nbsp;&nbsp;Transfer (from) to 12 month expected credit losses |  | 33235  | (33122) | (113) | - |
| &nbsp;&nbsp;Transfer (from) to lifetime expected credit losses |  | (50051) | 50130  | (79) | - |
| &nbsp;&nbsp;Transfer (from) to credit- impaired financial assets |  | (6288) | (16627) | 22915  | - |
| &nbsp;&nbsp;Net increase and decrease (\*) |  | 18837706  | (14525) | 41033  | 18864214  |
| &nbsp;&nbsp;Charge off |  | - | - | (92749) | (92749) |
| &nbsp;&nbsp;Disposal  |  | - | (1164) | (6378) | (7542) |
| Ending balance | W | 80303547  | 219944  | 181787  | 80705278  |

---

(\*) Includes the effects of the issuance, collection, restructuring of loans, debt-to-equity swaps, and changes in foreign exchange rates, among others.

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**13. <u>Loans at amortized cost, etc. (continued)</u>**

(b) Changes in the carrying amount of loans at amortized cost, etc. for the years ended December 31, 2025 and 2024 are as follows (continued):

*i) Loans at amortized cost (continued)* 

---

| | | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
|  |  | **Retail** | **Retail** | **Retail** | **Corporate** | **Corporate** | **Corporate** | **Credit card** | **Credit card** | **Credit card** | **Others** | **Others** | **Others** | **Others** |
|  |  | **12-month expected credit losses** | **Lifetime expected credit** <br>**losses** | **Impaired financial asset**  | **12-month expected credit losses** | **Lifetime expected credit losses** | **Impaired financial asset** | **12-month expected credit losses** | **Lifetime expected credit losses** | **Impaired financial** <br>**asset** | **12-month expected credit losses** | **Lifetime expected credit losses** | **Impaired financial** <br>**asset** | **Total** |
| &nbsp;&nbsp;Beginning balance  | W | 145441757  | 9390209  | 794050  | 181802456  | 41746140  | 1548844  | 23294631  | 4110407  | 645603  | 6444509  | 826979  | 24447  | 416070032  |
| &nbsp;&nbsp;Transfer (from) to 12-month expected credit losses |  | 3147209  | (3133165) | (14044) | 8633328  | (8567306) | (66022) | 59878  | (59830) | (48) | 30878  | (30878) | - | - |
| &nbsp;&nbsp;Transfer (from) to lifetime expected credit losses |  | (7176298) | 7236219  | (59921) | (14466401) | 14506969  | (40568) | (50080) | 50133  | (53) | (189201) | 189201  | - | - |
| &nbsp;&nbsp;Transfer (from) to credit- impaired financial assets |  | (478797) | (281842) | 760639  | (424077) | (611269) | 1035346  | (19995) | (12913) | 32908  | (43) | (9600) | 9643  | - |
| &nbsp;&nbsp;Net increase and decrease (\*1) |  | 12578349  | (843971) | 18273  | 24466147  | 2178224  | 893286  | 1320926  | (481264) | 1008038  | (303276) | 50784  | 6123  | 40891639  |
| &nbsp;&nbsp;Charge off (\*2) |  | - | - | (393809) | - | - | (450932) | - | - | (685877) | - | - | (5483) | (1536101) |
| &nbsp;&nbsp;Disposal  |  | - | (2706) | (200812) | (33148) | (190000) | (761001) | - | - | (357581) | - | (410) | (18743) | (1564401) |
| Ending balance | W | 153512220 | 12364744  | 904376  | 199978305  | 49062758  | 2158953  | 24605360  | 3606533  | 642990  | 5982867  | 1026076  | 15987  | 453861169  |

---

(\*1) Includes the effects of the issuance, collection, restructuring of loans, debt-to-equity swaps, and changes in foreign exchange rates, among others.

(\*2) The amount of uncollected loans currently in recovery (principal and interest) is W 10,268,898 million, which is written off as of December 31, 2024.

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**13. <u>Loans at amortized cost, etc. (continued)</u>**

(b) Changes in the carrying amount of loans at amortized cost, etc. for the years ended December 31, 2025 and 2024 are as follows (continued):

*ii) Due from banks at amortized cost and other financial assets*

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  |  | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
|  |  | **12-month expected** <br>**credit losses** | **Lifetime expected**<br> **credit losses** | **Impaired financial asset** | **Total** |
| &nbsp;&nbsp;Beginning balance  | W | 59409121  | 245916  | 167788  | 59822825  |
| &nbsp;&nbsp;Transfer (from) to 12 month expected credit losses |  | 34752  | (34626) | (126) | - |
| &nbsp;&nbsp;Transfer (from) to lifetime expected credit losses |  | (62021) | 62091  | (70) | - |
| &nbsp;&nbsp;Transfer (from) to credit- impaired financial assets |  | (8949) | (21143) | 30092  | - |
| &nbsp;&nbsp;Net increase and decrease (\*) |  | 2116517  | (10556) | 205387  | 2311348  |
| &nbsp;&nbsp;Charge off |  | - | - | (61157) | (61157) |
| &nbsp;&nbsp;Disposal  |  | (475) | (6430) | (124756) | (131661) |
| Ending balance | W | 61488945  | 235252  | 217158  | 61941355  |

---

(\*) Includes the effects of the issuance, collection, restructuring of loans, debt-to-equity swaps, and changes in foreign exchange rates, among others.

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**13. <u>Loans at amortized cost, etc. (continued)</u>**

(c) Changes in the allowance for credit losses on loans at amortized cost, etc. for the years ended December 31, 2025 and 2024 are as follows:

*i) Loans at amortized cost*

---

| | | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** |
|  |  | **Retail** | **Retail** | **Retail** | **Corporate** | **Corporate** | **Corporate** | **Credit card** | **Credit card** | **Credit card** | **Others** | **Others** | **Others** | **Others** |
|  |  | **12-month expected credit losses** | **Lifetime expected credit** <br>**losses** | **Impaired financial asset** | **12-month expected credit losses** | **Lifetime expected credit losses** | **Impaired financial asset** | **12-month expected credit losses** | **Lifetime expected credit losses** | **Impaired financial** <br>**asset** | **12-month expected credit losses** | **Lifetime expected credit losses** | **Impaired financial** <br>**asset** | **Total** |
| &nbsp;&nbsp;Beginning balance  | W | 268533  | 223017  | 340091  | 725105  | 872904  | 958808  | 263914  | 418255  | 458116  | 12748  | 17575  | 6865  | 4565931  |
| &nbsp;&nbsp;Transfer (from) to 12- month expected credit losses |  | 53827  | (51918) | (1909) | 134081  | (132826) | (1255) | 84381  | (84246) | (135) | 8442  | (8442) | - | - |
| &nbsp;&nbsp;Transfer (from) to lifetime expected credit losses |  | (18210) | 56419  | (38209) | (74530) | 80482  | (5952) | (24117) | 24486  | (369) | (283) | 283  | - | - |
| &nbsp;&nbsp;Transfer (from) to credit- impaired financial assets |  | (17720) | (26077) | 43797  | (5712) | (76398) | 82110  | (11675) | (113200) | 124875  | (45) | (244) | 289  | - |
| &nbsp;&nbsp;Provision (reversal)  |  | (22099) | 21425  | 251154  | (71512) | 83178  | 885920  | (87645) | 132894  | 825064  | (10665) | (2233) | 8656  | 2014137  |
| &nbsp;&nbsp;Charge off |  | - | - | (373347) | - | - | (833199) | - | - | (806961) | - | - | (14410) | (2027917) |
| &nbsp;&nbsp;Amortization of discount |  | - | - | (11333) | - | - | (27865) | - | - | 79  | - | - | - | (39119) |
| &nbsp;&nbsp;Disposal |  | - | (377) | (66868) | - | (3381) | (107589) | - | - | (371086) | - | - | (75) | (549376) |
| &nbsp;&nbsp;Collection  |  | - | - | 195229  | - | - | 51741  | - | - | 96413  | - | - | 412  | 343795  |
| &nbsp;&nbsp;Others (\*) |  | (2369) | (478) | 921  | (7497) | (6213) | (4283) | 316  | (1003) | (6187) | 86  | (72) | - | (26779) |
| Ending balance | W | 261962  | 222011  | 339526  | 699935  | 817746  | 998436  | 225174  | 377186  | 319809  | 10283  | 6867  | 1737  | 4280672  |

---

(\*) Includes the effects of restructuring of loans, debt-to-equity swaps, and changes in foreign exchange rates, among others.

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**13. <u>Loans at amortized cost, etc. (continued)</u>**

(c) Changes in the allowance for credit losses on loans at amortized cost, etc. for the years ended December 31, 2025 and 2024 are as follows (continued):

*ii) Due from banks at amortized cost and other financial assets* 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  |  | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** |
|  |  | **12-month expected** <br>**credit losses** | **Lifetime expected** <br>**credit losses** | **Impaired financial asset** | **Total** |
| &nbsp;&nbsp;Beginning balance  | W | 394484  | 14752  | 186410  | 595646  |
| &nbsp;&nbsp;Transfer (from) to 12-month expected credit losses |  | 654  | (613) | (41) | - |
| &nbsp;&nbsp;Transfer (from) to lifetime expected credit losses |  | (869) | 891  | (22) | - |
| &nbsp;&nbsp;Transfer (from) to credit- impaired financial assets |  | (1957) | (5084) | 7041  | - |
| &nbsp;&nbsp;Provision |  | 4759  | 507  | 64769  | 70035  |
| &nbsp;&nbsp;Write-offs |  | - | - | (92749) | (92749) |
| &nbsp;&nbsp;Disposal |  | - | (37) | (5663) | (5700) |
| &nbsp;&nbsp;Collection |  | - | - | 2688  | 2688  |
| &nbsp;&nbsp;Others (\*) |  | 1728  | (6) | (14226) | (12504) |
| Ending balance | W | 398799  | 10410  | 148207  | 557416  |

---

(\*) Includes the effects of restructuring of loans, debt-to-equity swaps, and changes in foreign exchange rates, among others.

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**13. <u>Loans at amortized cost, etc. (continued)</u>**

(c) Changes in the allowance for credit losses on loans at amortized cost, etc. for the years ended December 31, 2025 and 2024 are as follows (continued):

*i) Loans at amortized cost (continued)*

---

| | | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
|  |  | **Retail** | **Retail** | **Retail** | **Corporate** | **Corporate** | **Corporate** | **Credit card** | **Credit card** | **Credit card** | **Others** | **Others** | **Others** | **Others** |
|  |  | **12-month expected credit losses** | **Lifetime expected credit** <br>**losses** | **Impaired financial asset**  | **12-month expected credit losses** | **Lifetime expected credit losses** | **Impaired financial asset** | **12-month expected credit losses** | **Lifetime expected credit losses** | **Impaired financial** <br>**asset** | **12-month expected credit losses** | **Lifetime expected credit losses** | **Impaired financial** <br>**asset** | **Total** |
| &nbsp;&nbsp;Beginning balance  | W | 243266  | 207362  | 283191  | 789050  | 994345  | 628487  | 230286  | 460848  | 462554  | 13372  | 10371  | 7338  | 4330470  |
| &nbsp;&nbsp;Transfer (from) to 12-month expected credit losses |  | 40874  | (39258) | (1616) | 140511  | (137260) | (3251) | 25333  | (25273) | (60) | 85  | (85) | - | - |
| &nbsp;&nbsp;Transfer (from) to lifetime expected credit losses |  | (24178) | 50652  | (26474) | (79310) | 86108  | (6798) | (19981) | 20177  | (196) | (1310) | 1310  | - | - |
| &nbsp;&nbsp;Transfer (from) to credit- impaired financial assets |  | (15753) | (21007) | 36760  | (5838) | (84444) | 90282  | (2696) | (4919) | 7615  | - | (60) | 60  | - |
| &nbsp;&nbsp;Provision (reversal)  |  | 21772  | 25003  | 392200  | (123593) | 23937  | 760786  | 30805  | (32602) | 751753  | 412  | 6016  | 5524  | 1862013  |
| &nbsp;&nbsp;Charge off |  | - | - | (393809) | - | - | (450932) | - | - | (685877) | - | - | (5483) | (1536101) |
| &nbsp;&nbsp;Amortization of discount |  | - | - | (13501) | - | - | (27710) | - | - | 6180  | - | - | - | (35031) |
| &nbsp;&nbsp;Disposal |  | - | (261) | (53538) | (2946) | (19347) | (90141) | - | - | (257543) | - | (1) | (1061) | (424838) |
| &nbsp;&nbsp;Collection  |  | - | - | 112627  | - | - | 75082  | - | - | 172842  | - | - | 487  | 361038  |
| &nbsp;&nbsp;Others (\*) |  | 2552  | 526  | 4251  | 7231  | 9565  | (16997) | 167  | 24  | 848  | 189  | 24  | - | 8380  |
| Ending balance | W | 268533  | 223017  | 340091  | 725105  | 872904  | 958808  | 263914  | 418255  | 458116  | 12748  | 17575  | 6865  | 4565931  |

---

(\*) Includes the effects of restructuring of loans, debt-to-equity swaps, and changes in foreign exchange rates, among others.

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**13. <u>Loans at amortized cost, etc. (continued)</u>**

(c) Changes in the allowance for credit losses on loans at amortized cost, etc. for the years ended December 31, 2025 and 2024 are as follows (continued):

*ii) Due from banks at amortized cost and other financial assets* 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  |  | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
|  |  | **12-month expected** <br>**credit losses** | **Lifetime expected** <br>**credit losses** | **Impaired financial asset** | **Total** |
| &nbsp;&nbsp;Beginning balance  | W | 332951  | 15650  | 137968  | 486569  |
| &nbsp;&nbsp;Transfer (from) to 12-month expected credit losses |  | 1262  | (1229) | (33) | - |
| &nbsp;&nbsp;Transfer (from) to lifetime expected credit losses |  | (5414) | 5441  | (27) | - |
| &nbsp;&nbsp;Transfer (from) to credit- impaired financial assets |  | (178) | (5715) | 5893  | - |
| &nbsp;&nbsp;Provision |  | 175  | 629  | 112858  | 113662  |
| &nbsp;&nbsp;Write-offs |  | - | - | (61157) | (61157) |
| &nbsp;&nbsp;Disposal |  | (1) | (38) | (15028) | (15067) |
| &nbsp;&nbsp;Collection |  | - | - | 3292  | 3292  |
| &nbsp;&nbsp;Others (\*) |  | 65689 | 14 | 2644 | 68347 |
| Ending balance | W | 394484 | 14752 | 186410 | 595646 |

---

(\*) Includes the effects of restructuring of loans, debt-to-equity swaps, and changes in foreign exchange rates, among others.

(d) Changes in deferred loan origination costs for the years ended December 31, 2025 and 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  |  | **December 31, 2025** | **December 31, 2024** |
| Beginning balance  | W | 645569  | 505986  |
| Loan origination  |  | 306840  | 344963  |
| &nbsp;&nbsp;Amortization, etc. |  | (224660) | (205380) |
| Ending balance | W | 727749  | 645569  |

---

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**14. <u>Property and equipment</u>**

(a) Details of property and equipment as of December 31, 2025 and 2024 are as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**December 31, 2025** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**December 31, 2025** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**December 31, 2025** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**December 31, 2025** |
|  |  | **Acquisition cost** | &nbsp;&nbsp;&nbsp;**Accumulated** <br>**depreciation** | **Accumulated**<br>**Impairment** | **Carrying amount** |
| &nbsp;&nbsp;&nbsp;Land | W | 1965541  | - | - | 1965541  |
| &nbsp;&nbsp;&nbsp;Buildings  |  | 1516346  | (605249) | (11630) | 899467  |
| &nbsp;&nbsp;&nbsp;Other assets |  | 2585776  | (2065625) | - | 520151  |
| &nbsp;&nbsp;&nbsp;Right-of-use assets |  | 1782396  | (1014369) | - | 768027  |
|  | W | 7850059  | (3685243) | (11630) | 4153186  |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**December 31, 2024** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**December 31, 2024** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**December 31, 2024** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**December 31, 2024** |
|  |  | **Acquisition cost** | &nbsp;&nbsp;&nbsp;**Accumulated** <br>**depreciation** | **Accumulated**<br>**Impairment** | **Carrying amount** |
| &nbsp;&nbsp;&nbsp;Land | W | 2028761  | - | - | 2028761  |
| &nbsp;&nbsp;&nbsp;Buildings  |  | 1314682  | (565350) | (10706) | 738626  |
| &nbsp;&nbsp;&nbsp;Other assets |  | 2482527  | (1967572) | - | 514955  |
| &nbsp;&nbsp;&nbsp;Right-of-use assets |  | 1717665  | (842415) | - | 875250  |
|  | W | 7543635  | (3375337) | (10706) | 4157592  |

---

(b) Changes in property and equipment for the years ended December 31, 2025 and 2024 are as follows:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  |  | &nbsp;&nbsp;**December 31, 2025** | &nbsp;&nbsp;**December 31, 2025** | &nbsp;&nbsp;**December 31, 2025** | &nbsp;&nbsp;**December 31, 2025** | &nbsp;&nbsp;**December 31, 2025** |
|  |  | &nbsp;&nbsp;&nbsp;&nbsp;**Land** | &nbsp;&nbsp;&nbsp;&nbsp;**Buildings** | &nbsp;&nbsp;&nbsp;&nbsp;**Others** | &nbsp;&nbsp;&nbsp;&nbsp;**Right-of-use assets** | &nbsp;&nbsp;&nbsp;&nbsp;**Total** |
| &nbsp;&nbsp;Beginning balance | &nbsp;&nbsp;W | &nbsp;&nbsp;2028761  | &nbsp;&nbsp;738626  | &nbsp;&nbsp;514955  | &nbsp;&nbsp;875250  | &nbsp;&nbsp;4157592  |
| &nbsp;&nbsp;Acquisition (\*1) |  | &nbsp;&nbsp;- | &nbsp;&nbsp;46132  | &nbsp;&nbsp;207342  | &nbsp;&nbsp;289866  | &nbsp;&nbsp;543340  |
| &nbsp;&nbsp;Disposal (\*1) |  | &nbsp;&nbsp;(591) | &nbsp;&nbsp;(740) | &nbsp;&nbsp;(4478) | &nbsp;&nbsp;(63119) | &nbsp;&nbsp;(68928) |
| &nbsp;&nbsp;&nbsp;&nbsp;Depreciation (\*2) |  | &nbsp;&nbsp;- | &nbsp;&nbsp;(58376) | &nbsp;&nbsp;(205579) | &nbsp;&nbsp;(334935) | &nbsp;&nbsp;(598890) |
| &nbsp;&nbsp;&nbsp;&nbsp;Asset impairment |  | &nbsp;&nbsp;- | &nbsp;&nbsp;(923) | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;(923) |
| &nbsp;&nbsp;&nbsp;&nbsp;Amounts transferred from (to) investment property |  | &nbsp;&nbsp;(53772) | &nbsp;&nbsp;48943  | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;(4829) |
| &nbsp;&nbsp;&nbsp;&nbsp;Amounts transferred from (to) intangible assets |  | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;7548  | &nbsp;&nbsp;- | &nbsp;&nbsp;7548  |
| &nbsp;&nbsp;&nbsp;&nbsp;Amounts transferred from (to) non-current assets held for sale (\*3) |  | &nbsp;&nbsp;(8627) | &nbsp;&nbsp;(3170) | &nbsp;&nbsp;(83) | &nbsp;&nbsp;- | &nbsp;&nbsp;(11880) |
| &nbsp;&nbsp;&nbsp;&nbsp;Amounts transferred from(to) operating lease assets |  | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;30  | &nbsp;&nbsp;- | &nbsp;&nbsp;30  |
| &nbsp;&nbsp;&nbsp;&nbsp;Effects of foreign currency adjustments |  | &nbsp;&nbsp;(230) | &nbsp;&nbsp;1087  | &nbsp;&nbsp;340  | &nbsp;&nbsp;961  | &nbsp;&nbsp;2158  |
| &nbsp;&nbsp;&nbsp;&nbsp;Effects of business combinations |  | &nbsp;&nbsp;- | &nbsp;&nbsp;127888  | &nbsp;&nbsp;76  | &nbsp;&nbsp;4  | &nbsp;&nbsp;127968  |
| &nbsp;&nbsp;&nbsp;&nbsp;Ending balance | &nbsp;&nbsp;W | &nbsp;&nbsp;1965541  | &nbsp;&nbsp;899467  | &nbsp;&nbsp;520151  | &nbsp;&nbsp;768027  | &nbsp;&nbsp;4153186  |

---

(\*1) During the year ended December 31, 2025, W 36,258 million transferred from assets under construction is included.

(\*2) Included in general administrative expense, other operating expense and insurance service expense of the consolidated statements of comprehensive income.

(\*3) Includes buildings, land, etc.

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**14. <u>Property and equipment (continued)</u>**

(b) Changes in property and equipment for the years ended December 31, 2025 and 2024 are as follows (continued):

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  |  | &nbsp;&nbsp;**December 31, 2024** | &nbsp;&nbsp;**December 31, 2024** | &nbsp;&nbsp;**December 31, 2024** | &nbsp;&nbsp;**December 31, 2024** | &nbsp;&nbsp;**December 31, 2024** |
|  |  | &nbsp;&nbsp;&nbsp;&nbsp;**Land** | &nbsp;&nbsp;&nbsp;&nbsp;**Buildings** | &nbsp;&nbsp;&nbsp;&nbsp;**Others** | &nbsp;&nbsp;&nbsp;&nbsp;**Right-of-use assets** | &nbsp;&nbsp;&nbsp;&nbsp;**Total** |
| &nbsp;&nbsp;Beginning balance | &nbsp;&nbsp;W | &nbsp;&nbsp;2043119  | &nbsp;&nbsp;790251  | &nbsp;&nbsp;532459  | &nbsp;&nbsp;606475  | &nbsp;&nbsp;3972304  |
| &nbsp;&nbsp;Acquisition (\*1) |  | &nbsp;&nbsp;40480  | &nbsp;&nbsp;23661  | &nbsp;&nbsp;199988  | &nbsp;&nbsp;624103  | &nbsp;&nbsp;888232  |
| &nbsp;&nbsp;Disposal (\*1) |  | &nbsp;&nbsp;(500) | &nbsp;&nbsp;(854) | &nbsp;&nbsp;(10774) | &nbsp;&nbsp;(45452) | &nbsp;&nbsp;(57580) |
| &nbsp;&nbsp;&nbsp;&nbsp;Depreciation (\*2) |  | &nbsp;&nbsp;- | &nbsp;&nbsp;(57341) | &nbsp;&nbsp;(209156) | &nbsp;&nbsp;(329946) | &nbsp;&nbsp;(596443) |
| &nbsp;&nbsp;&nbsp;&nbsp;Asset impairment |  | &nbsp;&nbsp;- | &nbsp;&nbsp;(1703) | &nbsp;&nbsp;- | &nbsp;&nbsp;53  | &nbsp;&nbsp;(1650) |
| &nbsp;&nbsp;&nbsp;&nbsp;Amounts transferred from (to) investment property |  | &nbsp;&nbsp;(61432) | &nbsp;&nbsp;(16320) | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;(77752) |
| &nbsp;&nbsp;&nbsp;&nbsp;Amounts transferred from (to) intangible assets |  | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;2302  | &nbsp;&nbsp;- | &nbsp;&nbsp;2302  |
| &nbsp;&nbsp;&nbsp;&nbsp;Amounts transferred from (to) non-current assets held for sale (\*3) |  | &nbsp;&nbsp;528  | &nbsp;&nbsp;511  | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;1039  |
| &nbsp;&nbsp;&nbsp;&nbsp;Amounts transferred from (to) operating lease assets |  | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;80  | &nbsp;&nbsp;- | &nbsp;&nbsp;80  |
| &nbsp;&nbsp;&nbsp;&nbsp;Effects of foreign currency adjustments |  | &nbsp;&nbsp;6566 | &nbsp;&nbsp;421 | &nbsp;&nbsp;56 | &nbsp;&nbsp;20017 | &nbsp;&nbsp;27060 |
| &nbsp;&nbsp;&nbsp;&nbsp;Ending balance | &nbsp;&nbsp;W | &nbsp;&nbsp;2028761 | &nbsp;&nbsp;738626 | &nbsp;&nbsp;514955 | &nbsp;&nbsp;875250 | &nbsp;&nbsp;4157592 |

---

(\*1) During the year ended December 31, 2024, W 26,185 million transferred from assets under construction is included.

(\*2) Included in general administrative expense, other operating expense and insurance service expense of the consolidated statements of comprehensive income.

(\*3) Includes buildings, land, etc.

(c) Details of insurance coverage for cash, property and equipment, investment properties, and assets held for sale as of December 31, 2025 are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** |
| **Type of insurance** | **Insured assets and objects** | **Amount covered** | **Insurance company** |
| &nbsp;&nbsp;Comprehensive insurance for financial institutions | Cash (including ATM) | 29500  | Samsung Fire & Marine<br>Insurance Co., Ltd., etc. |
| &nbsp;&nbsp;Comprehensive Property insurance | Property Total Risk, Machine Risk, General Liability Collateral | 1430372  | Samsung Fire & Marine<br>Insurance Co., Ltd., etc. |
| Fire insurance | Business property and real estate | 20008  | Hanwha General Insurance Co., Ltd. etc. |
| &nbsp;&nbsp;Compensation liability insurance for officers | Officer liability of executives | 46000  | Meritz Fire & Marine<br>Insurance Co., Ltd., etc. |
| Burglary insurance | Cash and securities | 60000  | Samsung Fire & Marine<br>Insurance Co., Ltd., etc. |
| &nbsp;&nbsp;&nbsp;Personal information liability insurance, | &nbsp;&nbsp;&nbsp;&nbsp;- | 26090  | DB Insurance Co., Ltd. etc. |
| &nbsp;&nbsp;&nbsp;Others | &nbsp;&nbsp;&nbsp;&nbsp;- | 169677  | Samsung Fire & Marine<br>Insurance Co., Ltd., etc. |

---

(\*) In addition to the insurance described above, the Group maintains automobile insurance, medical insurance for employees, property damage insurance, and workers' compensation insurance, etc.

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

 **15. <u>Intangible assets</u>**

(a) Details of intangible assets as of December 31, 2025 and 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  |  | **December 31, 2025** | **December 31, 2024** |
| &nbsp;&nbsp;Goodwill | W | 4656673  | 4665417  |
| &nbsp;&nbsp;Software |  | 251178  | 235229  |
| &nbsp;&nbsp;Development cost |  | 543993  | 677572  |
| &nbsp;&nbsp;Others |  | 441314  | 541915  |
|  | W | 5893158  | 6120133  |

---

(b) Changes in intangible assets for the years ended December 31, 2025 and 2024 are as follows:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  |  | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** |
|  |  | **Goodwill** | **Software** | **Development**<br> **cost** | **Others** | **Total** |
| &nbsp;&nbsp;&nbsp;&nbsp;Beginning balance | W | 4665417  | 235229  | 677572  | 541915  | 6120133  |
| &nbsp;&nbsp;&nbsp;&nbsp;Acquisition |  | - | 108624  | 82897  | 96635  | 288156  |
| &nbsp;&nbsp;&nbsp;&nbsp;Disposal and write-off |  | - | (969) | (180) | (13818) | (14967) |
| &nbsp;&nbsp;&nbsp;&nbsp;Amounts transferred from (to) property and equipment |  | - | - | (7548) | - | (7548) |
| &nbsp;&nbsp;&nbsp;&nbsp;Amounts transferred within intangible assets |  | - | (2252) | - | - | (2252) |
| &nbsp;&nbsp;&nbsp;&nbsp;Impairment (\*1) |  | - | (499) | - | (297) | (796) |
| &nbsp;&nbsp;&nbsp;&nbsp;Amortization (\*2) |  | - | (94261) | (210459) | (173974) | (478694) |
| &nbsp;&nbsp;&nbsp;&nbsp;Effects of changes in foreign exchange rate |  | (8744) | 5306  | 1711  | (9147) | (10874) |
| &nbsp;&nbsp;&nbsp;&nbsp;Ending balance | W | 4656673  | 251178  | 543993  | 441314  | 5893158  |

---

(\*1) Included in the non-operating expenses of the consolidated statement of comprehensive income.

(\*2) Included in general administrative expense, other operating expense, and insurance service expense of the consolidated statements of comprehensive income.

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

 **15. <u>Intangible assets (continued)</u>**

(b) Changes in intangible assets for the years ended December 31, 2025 and 2024 are as follows (continued):

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  |  | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
|  |  | **Goodwill** | **Software** | **Development**<br> **cost** | **Others** | **Total** |
| &nbsp;&nbsp;&nbsp;&nbsp;Beginning balance | W | 4677204  | 259233  | 464638  | 816871  | 6217946  |
| &nbsp;&nbsp;&nbsp;&nbsp;Acquisition |  | - | 67077  | 196292 | 110230 | 373599  |
| &nbsp;&nbsp;&nbsp;&nbsp;Disposal and write-off |  | - | (2822) | (418) | (8383) | (11623) |
| &nbsp;&nbsp;&nbsp;&nbsp;Amounts transferred from (to) property and equipment |  | - | - | (2302) | - | (2302) |
| &nbsp;&nbsp;&nbsp;&nbsp;Amounts transferred within intangible assets |  | - | 905 | 165761 | (166666) | - |
| &nbsp;&nbsp;&nbsp;&nbsp;Impairment (\*1) |  | (24513) | - | (715) | (128) | (25356) |
| &nbsp;&nbsp;&nbsp;&nbsp;Amortization (\*2) |  | - | (96335) | (179302) | (174341) | (449978) |
| &nbsp;&nbsp;&nbsp;&nbsp;Effects of changes in foreign exchange rate |  | 12726 | 7171 | 33618 | (35668) | 17847 |
| &nbsp;&nbsp;&nbsp;&nbsp;Ending balance | W | 4665417 | 235229 | 677572 | 541915 | 6120133 |

---

(\*1) Goodwill impairment incurred from the cash-generating unit of security sector at Shinhan Securities Vietnam Co., Ltd. and other sector at Shinhan Asset Trust Co., Ltd. As a result of the impairment test for goodwill of Shinhan Securities Vietnam Co., Ltd., the Group recognized an impairment loss amounting to W 1,298 million for the carrying amount exceeding the recoverable amount of the CGU. This is due to the decrease in recoverable amounts resulting from the reduced trading volume and trading value on the Vietnamese stock market, caused by the global high interest rate environment and domestic and external economic recessions. In addition, as a result of the impairment test for goodwill of Shinhan Asset Trust Co., Ltd., the Group recognized an impairment loss amounting to W 23,215 million for the carrying amount exceeding the recoverable amount of the CGU. This is due to the decrease in recoverable amounts resulting from the deterioration of the business environment caused by the slowdown in the real estate and construction sectors. The amount of impairment loss recognized is included in the non-operating expenses, of the consolidated statement of comprehensive income.

(\*2) Included in general administrative expense, other operating expense, and insurance service expense of the consolidated statements of comprehensive income.

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**15. <u>Intangible asset (continued)</u>**

(c) Goodwill

*i) Goodwill allocated to the Group's Cash-Generating Units (CGUs) as of December 31, 2025 and 2024 is as follows:*

---

| | | | |
|:---|:---|:---|:---|
|  |  | **December 31, 2025** | **December 31, 2024** |
| Banking | W | 769,304  | 771,156 |
| Credit card |  | 2,894,610  | 2,901,502 |
| Life insurance  |  | 850,238  | 850,238 |
| Others |  | 142,521  | 142,521 |
|  | W | 4,656,673  | 4,665,417 |

---

*ii) Goodwill impairment test*

The recoverable amounts of each CGU are evaluated based on their respective value in use.

*ii-1) Explanation on evaluation method*

The discounted cash flow method (DCF) is applied when evaluating the recoverable amounts based on value in use, considering the characteristics of each unit or group of CGU. However, the CGU of life insurance applied an actuarial enterprise valuation methodology based on stochastically expected cash flows in consideration of the characteristics of the insurance business.

*ii-2) Projection period* 

When evaluating the value in use, 5.5 years of cash flow estimates are used in projection and the value thereafter is reflected as terminal value. However, 99 years of cash flow estimates for Shinhan Life Insurance Co., Ltd. is applied and the present value of the future cash flows thereafter is not applied as it is not significant.

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**15. <u>Intangible assets, net (continued)</u>**

*ii-3) Discount rates and terminal growth rates*

The required rates of return expected by shareholders are applied to the discount rates. It is calculated in consideration of which comprises a risk-free interest rate, a market risk premium and systemic risk (beta factor). In addition, terminal growth rate is estimated based on inflation rate. However, for the life insurance CGU, since its cost of risk is reflected at future cash flows, the current discount rates based on the interest rate term structure of risk-free government bonds that reflects only the time value of money was applied.

Discount rates before tax and terminal growth rates applied to each CGU are as follows:

---

| | | |
|:---|:---|:---|
|  | **Discount rate before tax (%)** | **Terminal growth rate (%)** |
| Banking | 8.4 ~ 15.6 | 0.0 ~ 2.0 |
| Credit card | 10.0 ~ 15.3 | 1.0 ~ 2.0 |
| Others | 9.1 ~ 11.2 | 1.0 |

---

In case of the life insurance CGU, a term structure discount rate of 2.78% ~4.30% was applied for each future period corresponding to future cash flows for 99 years.

*ii-4) Key assumptions*

Key assumptions used in the discounted cash flow calculations of CGUs (other than life insurance components) are as follows:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | &nbsp;&nbsp;**2025** | &nbsp;&nbsp;**2026** | &nbsp;&nbsp;**2027** | &nbsp;&nbsp;**2028** | &nbsp;&nbsp;**2029** | &nbsp;&nbsp;**2030** |
| &nbsp;&nbsp;CPI growth (%) | &nbsp;&nbsp;2.1  | &nbsp;&nbsp;1.7  | &nbsp;&nbsp;1.8  | &nbsp;&nbsp;2.1  | &nbsp;&nbsp;1.9  | &nbsp;&nbsp;1.9  |
| &nbsp;&nbsp;Private consumption growth (%) | &nbsp;&nbsp;0.8  | &nbsp;&nbsp;1.1  | &nbsp;&nbsp;1.6  | &nbsp;&nbsp;1.9  | &nbsp;&nbsp;2.1  | &nbsp;&nbsp;2.1  |
| &nbsp;&nbsp;Real GDP growth (%) | &nbsp;&nbsp;0.8  | &nbsp;&nbsp;1.4  | &nbsp;&nbsp;1.7  | &nbsp;&nbsp;2.0  | &nbsp;&nbsp;2.1  | &nbsp;&nbsp;2.1  |

---

Key assumptions used in the discounted cash flow calculations of life insurance (Shinhan Life Insurance Co., Ltd.) components are as follows:

---

| | |
|:---|:---|
|  | &nbsp;&nbsp;**Key assumptions** |
| &nbsp;&nbsp;Consumer price index growth rate (Bank of Korea) (%) | &nbsp;&nbsp;2.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;Risk-based confidence level (%) | &nbsp;&nbsp;99.5 |

---

*ii-5) The total recoverable amount and total carrying amount of CGUs to which goodwill has been allocated are as follows:*

---

| | | |
|:---|:---|:---|
|  |  | &nbsp;&nbsp;**Amount** |
| &nbsp;&nbsp;Total recoverable amount | &nbsp;&nbsp;W | &nbsp;&nbsp;63569922  |
| &nbsp;&nbsp;Total carrying amount |  | &nbsp;&nbsp;55556858  |
|  | &nbsp;&nbsp;W | &nbsp;&nbsp;8013064  |

---

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**16. <u>Investments in associates</u>**

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Investees** | **Country** | &nbsp;&nbsp;&nbsp;&nbsp;**Reporting**<br>**date** | **Ownership (%)** | **Ownership (%)** |
| **Investees** | **Country** | &nbsp;&nbsp;&nbsp;&nbsp;**Reporting**<br>**date** | **December 31, 2025** | **December 31, 2024** |
| &nbsp;&nbsp;&nbsp;BNP Paribas Cardif Life Insurance (\*1), (\*7) | Korea | September 30 | &nbsp;&nbsp;&nbsp;14.99 | &nbsp;&nbsp;&nbsp;14.99 |
| &nbsp;&nbsp;&nbsp;Shinhan-Neoplux Energy Newbiz Fund | Korea | December 31 | &nbsp;&nbsp;&nbsp;31.66 | &nbsp;&nbsp;&nbsp;31.66 |
| &nbsp;&nbsp;&nbsp;Shinhan-Albatross tech investment Fund (\*1) | Korea | November 30 | &nbsp;&nbsp;&nbsp;50.00 | &nbsp;&nbsp;&nbsp;50.00 |
| &nbsp;&nbsp;&nbsp;VOGO Debt Strategy Qualified IV Private | Korea | December 31 | &nbsp;&nbsp;&nbsp;20.00 | &nbsp;&nbsp;&nbsp;20.00 |
| &nbsp;&nbsp;&nbsp;Shinhan-Midas Donga Secondary Fund | Korea | December 31 | &nbsp;&nbsp;&nbsp;50.00 | &nbsp;&nbsp;&nbsp;50.00 |
| &nbsp;&nbsp;&nbsp;ShinHan – Soo Young Entrepreneur Investment Fund No.1 | Korea | December 31 | &nbsp;&nbsp;&nbsp;24.00 | &nbsp;&nbsp;&nbsp;24.00 |
| &nbsp;&nbsp;&nbsp;Shinhan Praxis K-Growth Global Private Equity Fund (\*7) | Korea | December 31 | &nbsp;&nbsp;&nbsp;14.15 | &nbsp;&nbsp;&nbsp;14.15 |
| &nbsp;&nbsp;&nbsp;Kiwoom Milestone Professional Private Real Estate Trust 19 | Korea | December 31 | &nbsp;&nbsp;&nbsp;50.00 | &nbsp;&nbsp;&nbsp;50.00 |
| &nbsp;&nbsp;&nbsp;Shinhan Global Healthcare Fund 1 (\*7) | Korea | December 31 | &nbsp;&nbsp;&nbsp;4.41 | &nbsp;&nbsp;&nbsp;3.13 |
| &nbsp;&nbsp;&nbsp;KB NA Hickory Private Special Asset Fund (\*5) | Korea | - | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;37.50 |
| &nbsp;&nbsp;&nbsp;Koramco Europe Core Private Placement Real Estate Fund No.2-2 | Korea | December 31 | &nbsp;&nbsp;&nbsp;44.02 | &nbsp;&nbsp;&nbsp;44.02 |
| &nbsp;&nbsp;&nbsp;Shinhan-Nvestor Liquidity Solution Fund | Korea | December 31 | &nbsp;&nbsp;&nbsp;24.92 | &nbsp;&nbsp;&nbsp;24.92 |
| &nbsp;&nbsp;&nbsp;Shinhan AIM FoF Fund 1-A | Korea | December 31 | &nbsp;&nbsp;&nbsp;25.00 | &nbsp;&nbsp;&nbsp;25.00 |
| &nbsp;&nbsp;&nbsp;IGIS Global Credit Fund 150-1 | Korea | December 31 | &nbsp;&nbsp;&nbsp;25.00 | &nbsp;&nbsp;&nbsp;25.00 |
| &nbsp;&nbsp;&nbsp;Nomura-Rifa Private Real Estate Investment Trust 19 | Korea | December 31 | &nbsp;&nbsp;&nbsp;31.20 | &nbsp;&nbsp;&nbsp;31.20 |
| &nbsp;&nbsp;&nbsp;Genesis North America Power Company No.1 PEF | Korea | December 31 | &nbsp;&nbsp;&nbsp;43.84 | &nbsp;&nbsp;&nbsp;43.84 |
| &nbsp;&nbsp;&nbsp;SH MAIN Professional Investment Type Private Mixed Asset Investment Trust No.3 (\*5) | Korea | - | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;23.33 |
| Korea Finance Security Co., Ltd. (\*1), (\*7) | Korea | September 30 | &nbsp;&nbsp;&nbsp;14.91 | &nbsp;&nbsp;&nbsp;14.91 |
| MIEL Co., Ltd. (\*2) | Korea | December 31 | &nbsp;&nbsp;&nbsp;28.77 | &nbsp;&nbsp;&nbsp;28.77 |
| &nbsp;&nbsp;AIP Transportation Specialized Privately Placed Fund Trust #1 | Korea | December 31 | &nbsp;&nbsp;&nbsp;35.73 | &nbsp;&nbsp;&nbsp;35.73 |
| &nbsp;&nbsp;Kiwoom-Shinhan Innovation Fund I | Korea | December 31 | &nbsp;&nbsp;&nbsp;50.00 | &nbsp;&nbsp;&nbsp;50.00 |
| &nbsp;&nbsp;Samchully Midstream Private Placement Special Asset Fund 5-4 | Korea | December 31 | &nbsp;&nbsp;&nbsp;41.67 | &nbsp;&nbsp;&nbsp;41.67 |
| &nbsp;&nbsp;MK Ventures-K Clavis Growth Capital Venture Fund 1 | Korea | December 31 | &nbsp;&nbsp;&nbsp;26.67 | &nbsp;&nbsp;&nbsp;26.67 |
| &nbsp;&nbsp;Vestas Qualified Investors Private Real Estate Fund Investment Trust No.37 (\*4) | Korea | December 31 | &nbsp;&nbsp;&nbsp;60.00 | &nbsp;&nbsp;&nbsp;60.00 |
| &nbsp;&nbsp;Milestone Private Real Estate Fund 3  | Korea | December 31 | &nbsp;&nbsp;&nbsp;32.06 | &nbsp;&nbsp;&nbsp;32.06 |
| &nbsp;&nbsp;Nomura-Rifa Private Real Estate Investment Trust 31  | Korea | December 31 | &nbsp;&nbsp;&nbsp;31.31 | &nbsp;&nbsp;&nbsp;31.31 |
| &nbsp;&nbsp;FuturePlay-Shinhan TechInnovation Fund 1 | Korea | December 31 | &nbsp;&nbsp;&nbsp;50.00 | &nbsp;&nbsp;&nbsp;50.00 |
| &nbsp;&nbsp;Stonebridge Corporate 1st Fund (\*5) | Korea | - | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;44.12 |
| &nbsp;&nbsp;Vogo Realty Partners Private Real Estate Fund V | Korea | December 31 | &nbsp;&nbsp;&nbsp;21.64 | &nbsp;&nbsp;&nbsp;21.64 |
| &nbsp;&nbsp;Korea Credit Bureau (\*1), (\*7) | Korea | September 30 | &nbsp;&nbsp;&nbsp;9.00 | &nbsp;&nbsp;&nbsp;9.00 |
| &nbsp;&nbsp;Goduck Gangil1 PFV Co., Ltd. (\*1), (\*7) | Korea | September 30 | &nbsp;&nbsp;&nbsp;1.04 | &nbsp;&nbsp;&nbsp;1.04 |
| &nbsp;&nbsp;SBC PFV Co., Ltd. (\*1), (\*7), (\*8) | Korea | September 30 | &nbsp;&nbsp;&nbsp;25.00 | &nbsp;&nbsp;&nbsp;25.00 |
| &nbsp;&nbsp;NH-amundi global infra private fund 16 | Korea | December 31 | &nbsp;&nbsp;&nbsp;50.00 | &nbsp;&nbsp;&nbsp;50.00 |
| &nbsp;&nbsp;SH BNCT Professional Investment Type Private Special Asset Investment Trust (\*9) | Korea | December 31 | &nbsp;&nbsp;&nbsp;72.50 | &nbsp;&nbsp;&nbsp;72.50 |
| &nbsp;&nbsp;IGIS Real-estate Private Investment Trust No.33 | Korea | December 31 | &nbsp;&nbsp;&nbsp;24.18 | &nbsp;&nbsp;&nbsp;40.86 |
| &nbsp;&nbsp;Goduck Gangil10 PFV Co., Ltd. (\*1), (\*7) | Korea | September 30 | &nbsp;&nbsp;&nbsp;19.90 | &nbsp;&nbsp;&nbsp;19.90 |
| &nbsp;&nbsp;Fidelis Global Private Real Estate Trust No.2 (\*6) | Korea | December 31 | &nbsp;&nbsp;&nbsp;79.63 | &nbsp;&nbsp;&nbsp;79.63 |
| &nbsp;&nbsp;AIP EURO PRIVATE REAL ESTATE TRUST No. 12 | Korea | December 31 | &nbsp;&nbsp;&nbsp;28.70 | &nbsp;&nbsp;&nbsp;28.70 |
| &nbsp;&nbsp;Shinhan Global Healthcare Fund 2 (\*7) | Korea | December 31 | &nbsp;&nbsp;&nbsp;13.68 | &nbsp;&nbsp;&nbsp;13.68 |
| &nbsp;&nbsp;Shinhan AIM Real Estate Fund No.1 | Korea | December 31 | &nbsp;&nbsp;&nbsp;21.01 | &nbsp;&nbsp;&nbsp;21.01 |
| &nbsp;&nbsp;SH Daegu Green Power Cogeneration System Professional Investment Type Private Special Asset Investment Trust  | Korea | December 31 | &nbsp;&nbsp;&nbsp;22.02 | &nbsp;&nbsp;&nbsp;22.02 |
| &nbsp;&nbsp;SH Sangju YC Expressway Professional Investment Type Private Special Asset Investment Trust | Korea | December 31 | &nbsp;&nbsp;&nbsp;29.19 | &nbsp;&nbsp;&nbsp;29.19 |
| &nbsp;&nbsp;SH Global Infrastructure Professional Investment Type Private Special Asset Investment Trust No.7-2 (\*6) | Korea | December 31 | &nbsp;&nbsp;&nbsp;71.43 | &nbsp;&nbsp;&nbsp;71.43 |
| &nbsp;&nbsp;Korea Omega-Shinhan Project Fund I | Korea | December 31 | &nbsp;&nbsp;&nbsp;50.00 | &nbsp;&nbsp;&nbsp;50.00 |
| &nbsp;&nbsp;Samsung SRA Real Estate Professional Private 45 | Korea | December 31 | &nbsp;&nbsp;&nbsp;25.00 | &nbsp;&nbsp;&nbsp;25.00 |

---

(a) Investments in associates as of December 31, 2025 and 2024 are as follows:

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**16. <u>Investments in associates (continued)</u>**

(a) Investments in associates as of December 31, 2025 and 2024 are as follows (continued):

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Investees** | **Country** | &nbsp;&nbsp;&nbsp;&nbsp;**Reporting**<br>**date** | **Ownership (%)** | **Ownership (%)** |
| **Investees** | **Country** | &nbsp;&nbsp;&nbsp;&nbsp;**Reporting**<br>**date** | **December 31, 2025** | **December 31, 2024** |
| &nbsp;&nbsp;&nbsp;IBK Global New Renewable Energy Special Asset Professional Private2 | Korea | December 31 | &nbsp;&nbsp;&nbsp;28.98 | &nbsp;&nbsp;&nbsp;28.98 |
| &nbsp;&nbsp;&nbsp;VS Cornerstone Fund (\*5) | Korea | - | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;41.18 |
| &nbsp;&nbsp;&nbsp;Kakao-Shinhan 1st TNYT Fund | Korea | December 31 | &nbsp;&nbsp;&nbsp;48.62 | &nbsp;&nbsp;&nbsp;48.62 |
| &nbsp;&nbsp;&nbsp;Pacific Private Placement Real Estate Fund No.40 | Korea | December 31 | &nbsp;&nbsp;&nbsp;24.73 | &nbsp;&nbsp;&nbsp;24.73 |
| &nbsp;&nbsp;&nbsp;LB Scotland Amazon Fulfillment Center Fund 29 (\*4) | Korea | December 31 | &nbsp;&nbsp;&nbsp;65.00 | &nbsp;&nbsp;&nbsp;65.00 |
| &nbsp;&nbsp;&nbsp;JR AMC Hungary Budapest Office Fund 16 | Korea | December 31 | &nbsp;&nbsp;&nbsp;34.87 | &nbsp;&nbsp;&nbsp;32.57 |
| &nbsp;&nbsp;&nbsp;Gyeonggi-Neoplux Superman Fund | Korea | December 31 | &nbsp;&nbsp;&nbsp;21.76 | &nbsp;&nbsp;&nbsp;21.76 |
| &nbsp;&nbsp;&nbsp;NewWave 6th Fund | Korea | December 31 | &nbsp;&nbsp;&nbsp;30.00 | &nbsp;&nbsp;&nbsp;30.00 |
| &nbsp;&nbsp;&nbsp;Neoplux No.3 Private Equity Fund (\*3) | Korea | December 31 | &nbsp;&nbsp;&nbsp;10.00 | &nbsp;&nbsp;&nbsp;10.00 |
| &nbsp;&nbsp;&nbsp;PCC Amberstone Private Equity Fund I | Korea | December 31 | &nbsp;&nbsp;&nbsp;21.67 | &nbsp;&nbsp;&nbsp;21.67 |
| &nbsp;&nbsp;&nbsp;KIAMCO POWERLOAN TRUST 4TH | Korea | December 31 | &nbsp;&nbsp;&nbsp;47.37 | &nbsp;&nbsp;&nbsp;47.37 |
| &nbsp;&nbsp;&nbsp;Mastern Opportunity Seeking Real Estate Fund II | Korea | December 31 | &nbsp;&nbsp;&nbsp;20.00 | &nbsp;&nbsp;&nbsp;22.22 |
| &nbsp;&nbsp;&nbsp;Neoplux Market-Frontier Secondary Fund (\*3) | Korea | December 31 | &nbsp;&nbsp;&nbsp;19.74 | &nbsp;&nbsp;&nbsp;19.74 |
| &nbsp;&nbsp;&nbsp;Synergy Green New Deal 1st New Technology Business Investment Fund (\*5) | Korea | - | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;28.17 |
| KIAMCO Vietnam Solar Special Asset Private Investment Trust | Korea | December 31 | &nbsp;&nbsp;&nbsp;50.00 | &nbsp;&nbsp;&nbsp;50.00 |
| SHINHAN-NEO Core Industrial Technology Fund | Korea | December 31 | &nbsp;&nbsp;&nbsp;49.75 | &nbsp;&nbsp;&nbsp;49.75 |
| &nbsp;&nbsp;SHBNPP Green New Deal Energy Professional Investment Type Private Special Asset Investment Trust No.2 | Korea | December 31 | &nbsp;&nbsp;&nbsp;30.00 | &nbsp;&nbsp;&nbsp;30.00 |
| &nbsp;&nbsp;Eum Private Equity Fund No.7 | Korea | December 31 | &nbsp;&nbsp;&nbsp;21.00 | &nbsp;&nbsp;&nbsp;21.00 |
| &nbsp;&nbsp;Kiwoom Hero No.4 Private Equity Fund (\*5) | Korea | - | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;21.05 |
| &nbsp;&nbsp;AJ-KOSNET Semicon One Venture Fund | Korea | December 31 | &nbsp;&nbsp;&nbsp;22.22 | &nbsp;&nbsp;&nbsp;22.22 |
| &nbsp;&nbsp;Shinhan Smilegate Global PEF I (\*5) | Korea | - | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;14.21 |
| &nbsp;&nbsp;Genesis Eco No.1 PEF | Korea | December 31 | &nbsp;&nbsp;&nbsp;29.00 | &nbsp;&nbsp;&nbsp;29.00 |
| &nbsp;&nbsp;SHINHAN-NEO Market-Frontier 2nd Fund | Korea | December 31 | &nbsp;&nbsp;&nbsp;42.70 | &nbsp;&nbsp;&nbsp;42.70 |
| &nbsp;&nbsp;J& Moorim Jade Investment Fund (\*5) | Korea | - | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;24.89 |
| &nbsp;&nbsp;Ulmus SHC innovation investment fund | Korea | December 31 | &nbsp;&nbsp;&nbsp;24.04 | &nbsp;&nbsp;&nbsp;24.04 |
| &nbsp;&nbsp;T Core Industrial Technology 1st Venture PEF | Korea | December 31 | &nbsp;&nbsp;&nbsp;31.47 | &nbsp;&nbsp;&nbsp;31.47 |
| &nbsp;&nbsp;TI First Property Private Investment Trust 1 | Korea | December 31 | &nbsp;&nbsp;&nbsp;40.00 | &nbsp;&nbsp;&nbsp;40.00 |
| &nbsp;&nbsp;Kiwoom-Shinhan Innovation Fund 2 | Korea | December 31 | &nbsp;&nbsp;&nbsp;42.86 | &nbsp;&nbsp;&nbsp;42.86 |
| &nbsp;&nbsp;ETRI Holdings-Shinhan 1st Unicorn Fund | Korea | December 31 | &nbsp;&nbsp;&nbsp;50.00 | &nbsp;&nbsp;&nbsp;50.00 |
| &nbsp;&nbsp;SJ ESG Innovative Growth Fund (\*5) | Korea | - | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;28.57 |
| &nbsp;&nbsp;AVES 1st Corporate Recovery Private Equity Fund (\*4) | Korea | December 31 | &nbsp;&nbsp;&nbsp;76.19 | &nbsp;&nbsp;&nbsp;76.19 |
| &nbsp;&nbsp;Reverent-Shinhan Vista Fund (\*3) | Korea | December 31 | &nbsp;&nbsp;&nbsp;13.41 | &nbsp;&nbsp;&nbsp;13.41 |
| &nbsp;&nbsp;JS Shinhan Private Equity Fund (\*3) | Korea | December 31 | &nbsp;&nbsp;&nbsp;3.85 | &nbsp;&nbsp;&nbsp;3.85 |
| &nbsp;&nbsp;Meta TB ESG Private Equity Fund I | Korea | December 31 | &nbsp;&nbsp;&nbsp;27.40 | &nbsp;&nbsp;&nbsp;27.40 |
| &nbsp;&nbsp;Shinhan VC tomorrow venture fund 1 | Korea | December 31 | &nbsp;&nbsp;&nbsp;39.62 | &nbsp;&nbsp;&nbsp;39.62 |
| &nbsp;&nbsp;H-IOTA Fund (\*5) | Korea | - | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;24.81 |
| &nbsp;&nbsp;Stonebridge-Shinhan Unicorn Secondary Fund  | Korea | December 31 | &nbsp;&nbsp;&nbsp;26.01 | &nbsp;&nbsp;&nbsp;26.01 |
| &nbsp;&nbsp;Tres-Yujin Trust  | Korea | December 31 | &nbsp;&nbsp;&nbsp;50.00 | &nbsp;&nbsp;&nbsp;50.00 |
| &nbsp;&nbsp;Shinhan-Time mezzanine blind Fund (\*5) | Korea | - | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;50.00 |
| &nbsp;&nbsp;Capstone REITs No.26 | Korea | December 31 | &nbsp;&nbsp;&nbsp;50.00 | &nbsp;&nbsp;&nbsp;50.00 |
| &nbsp;&nbsp;JB Incheon-Bucheon REITS No.54 | Korea | December 31 | &nbsp;&nbsp;&nbsp;39.31 | &nbsp;&nbsp;&nbsp;39.31 |
| &nbsp;&nbsp;Hankook Smart Real Asset Investment Trust No.3 | Korea | December 31 | &nbsp;&nbsp;&nbsp;33.33 | &nbsp;&nbsp;&nbsp;33.33 |
| &nbsp;&nbsp;JB Hwaseong-Hadong REITs No.53 | Korea | December 31 | &nbsp;&nbsp;&nbsp;31.03 | &nbsp;&nbsp;&nbsp;31.03 |
| &nbsp;&nbsp;KB Oaktree Trust No.3 | Korea | December 31 | &nbsp;&nbsp;&nbsp;33.33 | &nbsp;&nbsp;&nbsp;33.33 |
| &nbsp;&nbsp;KAI-The Square Fund 1 | Korea | December 31 | &nbsp;&nbsp;&nbsp;47.96 | &nbsp;&nbsp;&nbsp;47.96 |
| &nbsp;&nbsp;SH Real Estate Loan Investment Type Private Real Estate Investment Trust No.2 | Korea | December 31 | &nbsp;&nbsp;&nbsp;29.73 | &nbsp;&nbsp;&nbsp;29.73 |
| &nbsp;&nbsp;Shinhan JigaeNamsan Road Private Special Asset Investment Trust | Korea | December 31 | &nbsp;&nbsp;&nbsp;24.85 | &nbsp;&nbsp;&nbsp;24.85 |
| &nbsp;&nbsp;KB Distribution Private Real Estate 3-1 | Korea | December 31 | &nbsp;&nbsp;&nbsp;37.50 | &nbsp;&nbsp;&nbsp;37.50 |

---

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**16. <u>Investments in associates (continued)</u>**

(a) Investments in associates as of December 31, 2025 and 2024 are as follows (continued):

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Investees** | **Country** | &nbsp;&nbsp;&nbsp;&nbsp;**Reporting**<br>**date** | **Ownership (%)** | **Ownership (%)** |
| **Investees** | **Country** | &nbsp;&nbsp;&nbsp;&nbsp;**Reporting**<br>**date** | **December 31, 2025** | **December 31, 2024** |
| &nbsp;&nbsp;&nbsp;Pacific Private Investment Trust No.49-1 (\*6) | &nbsp;&nbsp;&nbsp;Korea | &nbsp;&nbsp;&nbsp;December 31 | &nbsp;&nbsp;&nbsp;79.28 | &nbsp;&nbsp;&nbsp;79.28 |
| &nbsp;&nbsp;&nbsp;KIWOOM Real estate private placement fund for normal investors No. 31 (\*6) | &nbsp;&nbsp;&nbsp;Korea | &nbsp;&nbsp;&nbsp;December 31 | &nbsp;&nbsp;&nbsp;60.00 | &nbsp;&nbsp;&nbsp;60.00 |
| &nbsp;&nbsp;&nbsp;RIFA Real estate private placement fund for normal investors No. 51  | &nbsp;&nbsp;&nbsp;Korea | &nbsp;&nbsp;&nbsp;December 31 | &nbsp;&nbsp;&nbsp;40.00 | &nbsp;&nbsp;&nbsp;40.00 |
| &nbsp;&nbsp;&nbsp;Shinhan-Kunicorn first Fund | &nbsp;&nbsp;&nbsp;Korea | &nbsp;&nbsp;&nbsp;December 31 | &nbsp;&nbsp;&nbsp;38.31 | &nbsp;&nbsp;&nbsp;38.31 |
| &nbsp;&nbsp;&nbsp;Shinhan-Quantum Startup Fund | &nbsp;&nbsp;&nbsp;Korea | &nbsp;&nbsp;&nbsp;December 31 | &nbsp;&nbsp;&nbsp;49.18 | &nbsp;&nbsp;&nbsp;49.18 |
| &nbsp;&nbsp;&nbsp;Shinhan Simone Fund Ⅰ | &nbsp;&nbsp;&nbsp;Korea | &nbsp;&nbsp;&nbsp;December 31 | &nbsp;&nbsp;&nbsp;38.46 | &nbsp;&nbsp;&nbsp;38.46 |
| &nbsp;&nbsp;&nbsp;Korea Investment develop seed Trust No.1 | &nbsp;&nbsp;&nbsp;Korea | &nbsp;&nbsp;&nbsp;December 31 | &nbsp;&nbsp;&nbsp;40.00 | &nbsp;&nbsp;&nbsp;40.00 |
| &nbsp;&nbsp;&nbsp;Tiger Green alpha Trust No.29 (\*5) | &nbsp;&nbsp;&nbsp;Korea | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;95.24 |
| &nbsp;&nbsp;&nbsp;STIC ALT Global II Private Equity Fund | &nbsp;&nbsp;&nbsp;Korea | &nbsp;&nbsp;&nbsp;December 31 | &nbsp;&nbsp;&nbsp;21.74 | &nbsp;&nbsp;&nbsp;21.74 |
| &nbsp;&nbsp;&nbsp;DDI LVC Master Real Estate Investment Trust Co., Ltd. (\*1), (\*7) | &nbsp;&nbsp;&nbsp;Korea | &nbsp;&nbsp;&nbsp;September 30 | &nbsp;&nbsp;&nbsp;15.00 | &nbsp;&nbsp;&nbsp;15.00 |
| &nbsp;&nbsp;&nbsp;Find-Green New Deal 2nd Equity Fund | &nbsp;&nbsp;&nbsp;Korea | &nbsp;&nbsp;&nbsp;December 31 | &nbsp;&nbsp;&nbsp;22.57 | &nbsp;&nbsp;&nbsp;22.57 |
| &nbsp;&nbsp;&nbsp;ShinhanFitrin 1st Technology Business Investment Association (\*3) | &nbsp;&nbsp;&nbsp;Korea | &nbsp;&nbsp;&nbsp;December 31 | &nbsp;&nbsp;&nbsp;16.17 | &nbsp;&nbsp;&nbsp;16.17 |
| &nbsp;&nbsp;&nbsp;Koramco Private Real Estate Fund 143 | &nbsp;&nbsp;&nbsp;Korea | &nbsp;&nbsp;&nbsp;December 31 | &nbsp;&nbsp;&nbsp;30.30 | &nbsp;&nbsp;&nbsp;30.30 |
| &nbsp;&nbsp;&nbsp;Korea Investment Top Mezzanine Private Real Estate Trust No.1 | &nbsp;&nbsp;&nbsp;Korea | &nbsp;&nbsp;&nbsp;December 31 | &nbsp;&nbsp;&nbsp;22.22 | &nbsp;&nbsp;&nbsp;22.22 |
| &nbsp;&nbsp;&nbsp;LB YoungNam Logistics Private Trust No.40 | &nbsp;&nbsp;&nbsp;Korea | &nbsp;&nbsp;&nbsp;December 31 | &nbsp;&nbsp;&nbsp;25.00 | &nbsp;&nbsp;&nbsp;25.00 |
| &nbsp;&nbsp;&nbsp;Shinhan-Cognitive Start-up Fund L.P. | &nbsp;&nbsp;&nbsp;Korea | &nbsp;&nbsp;&nbsp;December 31 | &nbsp;&nbsp;&nbsp;32.77 | &nbsp;&nbsp;&nbsp;32.77 |
| &nbsp;&nbsp;&nbsp;Cornerstone J&M Fund I (\*5) | &nbsp;&nbsp;&nbsp;Korea | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;26.67 |
| &nbsp;&nbsp;&nbsp;Logisvalley Shinhan REIT Co., Ltd. (\*1) | &nbsp;&nbsp;&nbsp;Korea | &nbsp;&nbsp;&nbsp;September 30 | &nbsp;&nbsp;&nbsp;20.27 | &nbsp;&nbsp;&nbsp;20.27 |
| &nbsp;&nbsp;&nbsp;Shinhan-G.N.Tech Smart Innovation Fund | &nbsp;&nbsp;&nbsp;Korea | &nbsp;&nbsp;&nbsp;December 31 | &nbsp;&nbsp;&nbsp;50.00 | &nbsp;&nbsp;&nbsp;50.00 |
| &nbsp;&nbsp;&nbsp;Shinhan-Gene and New Normal First Mover Venture Investment Equity Fund 1st | &nbsp;&nbsp;&nbsp;Korea | &nbsp;&nbsp;&nbsp;December 31 | &nbsp;&nbsp;&nbsp;50.00 | &nbsp;&nbsp;&nbsp;50.00 |
| &nbsp;&nbsp;&nbsp;Korea Investment Green Newdeal Infra Trust No.1 | &nbsp;&nbsp;&nbsp;Korea | &nbsp;&nbsp;&nbsp;December 31 | &nbsp;&nbsp;&nbsp;27.97 | &nbsp;&nbsp;&nbsp;27.97 |
| &nbsp;&nbsp;&nbsp;BTS 2nd Private Equity Fund (\*1) | &nbsp;&nbsp;&nbsp;Korea | &nbsp;&nbsp;&nbsp;November 30 | &nbsp;&nbsp;&nbsp;26.00 | &nbsp;&nbsp;&nbsp;26.00 |
| &nbsp;&nbsp;&nbsp;NH-J&-IBKC Label Technology Fund | &nbsp;&nbsp;&nbsp;Korea | &nbsp;&nbsp;&nbsp;December 31 | &nbsp;&nbsp;&nbsp;27.81 | &nbsp;&nbsp;&nbsp;27.81 |
| &nbsp;&nbsp;&nbsp;Shinhan-Sneak Peek Bio&Healthcare Bounce Back Fund | &nbsp;&nbsp;&nbsp;Korea | &nbsp;&nbsp;&nbsp;December 31 | &nbsp;&nbsp;&nbsp;50.00 | &nbsp;&nbsp;&nbsp;50.00 |
| &nbsp;&nbsp;&nbsp;Shinhan-isquare Venture PEF 1 | &nbsp;&nbsp;&nbsp;Korea | &nbsp;&nbsp;&nbsp;December 31 | &nbsp;&nbsp;&nbsp;40.00 | &nbsp;&nbsp;&nbsp;40.00 |
| &nbsp;&nbsp;&nbsp;Aurum Goldrush ESG Private Fund No. 1 | &nbsp;&nbsp;&nbsp;Korea | &nbsp;&nbsp;&nbsp;December 31 | &nbsp;&nbsp;&nbsp;28.33 | &nbsp;&nbsp;&nbsp;28.33 |
| &nbsp;&nbsp;&nbsp;Capstone Develop Frontier Trust (\*5) | &nbsp;&nbsp;&nbsp;Korea | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;21.43 |
| &nbsp;&nbsp;&nbsp;Nextrade Co., Ltd. (\*7) | &nbsp;&nbsp;&nbsp;Korea | &nbsp;&nbsp;&nbsp;December 31 | &nbsp;&nbsp;&nbsp;8.00 | &nbsp;&nbsp;&nbsp;8.00 |
| &nbsp;&nbsp;&nbsp;IBKC-Behigh Fund 1st | &nbsp;&nbsp;&nbsp;Korea | &nbsp;&nbsp;&nbsp;December 31 | &nbsp;&nbsp;&nbsp;29.73 | &nbsp;&nbsp;&nbsp;29.73 |
| &nbsp;&nbsp;&nbsp;ON No.1 Private Equity Fund (\*5) | &nbsp;&nbsp;&nbsp;Korea | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;28.57 |
| &nbsp;&nbsp;&nbsp;Digital New Deal Kappa Private Equity Fund (\*5) | &nbsp;&nbsp;&nbsp;Korea | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;24.75 |
| &nbsp;&nbsp;&nbsp;DS-Shinhan-JBWoori New Media New Technology Investment Fund No.1 | &nbsp;&nbsp;&nbsp;Korea | &nbsp;&nbsp;&nbsp;December 31 | &nbsp;&nbsp;&nbsp;20.83 | &nbsp;&nbsp;&nbsp;20.83 |
| &nbsp;&nbsp;&nbsp;VOGO Debt Strategy General Private Real Estate Investment Trust No. 18 | &nbsp;&nbsp;&nbsp;Korea | &nbsp;&nbsp;&nbsp;December 31 | &nbsp;&nbsp;&nbsp;28.57 | &nbsp;&nbsp;&nbsp;28.57 |
| &nbsp;&nbsp;&nbsp;Koramco IPO REITS Mezzanine General Private Investment Trust No. 38 (\*4) | &nbsp;&nbsp;&nbsp;Korea | &nbsp;&nbsp;&nbsp;December 31 | &nbsp;&nbsp;&nbsp;75.00 | &nbsp;&nbsp;&nbsp;75.00 |
| &nbsp;&nbsp;&nbsp;TogetherKorea Private Investment Trust No. 6 (\*6) | &nbsp;&nbsp;&nbsp;Korea | &nbsp;&nbsp;&nbsp;December 31 | &nbsp;&nbsp;&nbsp;99.98 | &nbsp;&nbsp;&nbsp;99.98 |
| &nbsp;&nbsp;&nbsp;TogetherKorea Private Investment Trust No. 7 (\*6) | &nbsp;&nbsp;&nbsp;Korea | &nbsp;&nbsp;&nbsp;December 31 | &nbsp;&nbsp;&nbsp;99.98 | &nbsp;&nbsp;&nbsp;99.98 |
| &nbsp;&nbsp;&nbsp;Kiwoom Core Industrial Technology Investment Fund No.3 | &nbsp;&nbsp;&nbsp;Korea | &nbsp;&nbsp;&nbsp;December 31 | &nbsp;&nbsp;&nbsp;34.75 | &nbsp;&nbsp;&nbsp;34.75 |
| &nbsp;&nbsp;&nbsp;Penture K-Content Investment Fund (\*7) | &nbsp;&nbsp;&nbsp;Korea | &nbsp;&nbsp;&nbsp;December 31 | &nbsp;&nbsp;&nbsp;19.78 | &nbsp;&nbsp;&nbsp;19.78 |
| &nbsp;&nbsp;&nbsp;2023 Shinhan-JB Woori-Daeshin Listed Companies New Technology Fund  | &nbsp;&nbsp;&nbsp;Korea | &nbsp;&nbsp;&nbsp;December 31 | &nbsp;&nbsp;&nbsp;30.00 | &nbsp;&nbsp;&nbsp;30.00 |
| &nbsp;&nbsp;&nbsp;Hana Alternative Investment Kosmes PCBO General PEF No. 1 | &nbsp;&nbsp;&nbsp;Korea | &nbsp;&nbsp;&nbsp;December 31 | &nbsp;&nbsp;&nbsp;37.04 | &nbsp;&nbsp;&nbsp;37.04 |
| &nbsp;&nbsp;&nbsp;Shinhan-Timefolio Bio Accelerator Fund | &nbsp;&nbsp;&nbsp;Korea | &nbsp;&nbsp;&nbsp;December 31 | &nbsp;&nbsp;&nbsp;48.39 | &nbsp;&nbsp;&nbsp;48.39 |
| &nbsp;&nbsp;&nbsp;Shinhan M&A-ESG Fund | &nbsp;&nbsp;&nbsp;Korea | &nbsp;&nbsp;&nbsp;December 31 | &nbsp;&nbsp;&nbsp;23.33 | &nbsp;&nbsp;&nbsp;23.33 |
| &nbsp;&nbsp;&nbsp;Shinhan Mid and Small-Sized Office Value-Added MO REIT Co., Ltd. | &nbsp;&nbsp;&nbsp;Korea | &nbsp;&nbsp;&nbsp;December 31 | &nbsp;&nbsp;&nbsp;28.43 | &nbsp;&nbsp;&nbsp;28.43 |
| &nbsp;&nbsp;&nbsp;KDBC meta-enter New Technology investment fund (\*5) | &nbsp;&nbsp;&nbsp;Korea | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;27.89 |
| &nbsp;&nbsp;&nbsp;Shinhan Time Secondary Blind New Technology Investment Trust | &nbsp;&nbsp;&nbsp;Korea | &nbsp;&nbsp;&nbsp;December 31 | &nbsp;&nbsp;&nbsp;47.50 | &nbsp;&nbsp;&nbsp;47.50 |
| &nbsp;&nbsp;&nbsp;Shinhan DS Secondary Investment Fund | &nbsp;&nbsp;&nbsp;Korea | &nbsp;&nbsp;&nbsp;December 31 | &nbsp;&nbsp;&nbsp;49.83 | &nbsp;&nbsp;&nbsp;49.83 |
| &nbsp;&nbsp;&nbsp;Shinhan-openwater pre-IPO Investment Trust 1 | &nbsp;&nbsp;&nbsp;Korea | &nbsp;&nbsp;&nbsp;December 31 | &nbsp;&nbsp;&nbsp;50.00 | &nbsp;&nbsp;&nbsp;50.00 |

---

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**16. <u>Investments in associates (continued)</u>**

(a) Investments in associates as of December 31, 2025 and 2024 are as follows (continued):

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Investees** | **Country** | &nbsp;&nbsp;&nbsp;&nbsp;**Reporting**<br>**date** | **Ownership (%)** | **Ownership (%)** |
| **Investees** | **Country** | &nbsp;&nbsp;&nbsp;&nbsp;**Reporting**<br>**date** | **December 31, 2025** | **December 31, 2024** |
| Shinhan-CJ TechInnovation Fund 1st | &nbsp;&nbsp;&nbsp;Korea | &nbsp;&nbsp;&nbsp;December 31 | &nbsp;&nbsp;&nbsp;40.00 | &nbsp;&nbsp;&nbsp;40.00 |
| &nbsp;&nbsp;&nbsp;Shinhan-Eco Venture Fund 2nd | &nbsp;&nbsp;&nbsp;Korea | &nbsp;&nbsp;&nbsp;December 31 | &nbsp;&nbsp;&nbsp;40.00 | &nbsp;&nbsp;&nbsp;40.00 |
| &nbsp;&nbsp;&nbsp;Heungkuk-Shinhan the1st Visionary Technology Investment Trust no. 1 | &nbsp;&nbsp;&nbsp;Korea | &nbsp;&nbsp;&nbsp;December 31 | &nbsp;&nbsp;&nbsp;40.00 | &nbsp;&nbsp;&nbsp;40.00 |
| &nbsp;&nbsp;&nbsp;Hantoo Shinhan Lake K-beauty Technology Investment Trust | &nbsp;&nbsp;&nbsp;Korea | &nbsp;&nbsp;&nbsp;December 31 | &nbsp;&nbsp;&nbsp;22.96 | &nbsp;&nbsp;&nbsp;22.96 |
| &nbsp;&nbsp;&nbsp;Shinhan HB Wellness 1st Investment Trust | &nbsp;&nbsp;&nbsp;Korea | &nbsp;&nbsp;&nbsp;December 31 | &nbsp;&nbsp;&nbsp;48.54 | &nbsp;&nbsp;&nbsp;48.54 |
| &nbsp;&nbsp;&nbsp;Korea real Asset Fund No.3 | &nbsp;&nbsp;&nbsp;Korea | &nbsp;&nbsp;&nbsp;December 31 | &nbsp;&nbsp;&nbsp;28.57 | &nbsp;&nbsp;&nbsp;28.57 |
| &nbsp;&nbsp;&nbsp;Timefolio Tech Fund I | &nbsp;&nbsp;&nbsp;Korea | &nbsp;&nbsp;&nbsp;December 31 | &nbsp;&nbsp;&nbsp;21.18 | &nbsp;&nbsp;&nbsp;21.18 |
| &nbsp;&nbsp;&nbsp;PineStreet Global Corporate FoF XIII-2 (\*6) | &nbsp;&nbsp;&nbsp;Korea | &nbsp;&nbsp;&nbsp;December 31 | &nbsp;&nbsp;&nbsp;100.00 | &nbsp;&nbsp;&nbsp;100.00 |
| IGIS Yongsan Office General Private Real Estate Investment Trust 518 | &nbsp;&nbsp;&nbsp;Korea | &nbsp;&nbsp;&nbsp;December 31 | &nbsp;&nbsp;&nbsp;26.22 | &nbsp;&nbsp;&nbsp;26.22 |
| &nbsp;&nbsp;&nbsp;SH K-REITs Infra Real Estate Investment Trust (FoFs) | &nbsp;&nbsp;&nbsp;Korea | &nbsp;&nbsp;&nbsp;December 31 | &nbsp;&nbsp;&nbsp;23.30 | &nbsp;&nbsp;&nbsp;20.40 |
| &nbsp;&nbsp;&nbsp;Samsung-dunamu Innovative IT Technology Investment Trust No. 1 | &nbsp;&nbsp;&nbsp;Korea | &nbsp;&nbsp;&nbsp;December 31 | &nbsp;&nbsp;&nbsp;22.99 | &nbsp;&nbsp;&nbsp;22.99 |
| &nbsp;&nbsp;&nbsp;Time Robotics New Technology Investment Trust | &nbsp;&nbsp;&nbsp;Korea | &nbsp;&nbsp;&nbsp;December 31 | &nbsp;&nbsp;&nbsp;29.86 | &nbsp;&nbsp;&nbsp;29.86 |
| &nbsp;&nbsp;&nbsp;Ascent-welcome Technology Investment Trust No.2 | &nbsp;&nbsp;&nbsp;Korea | &nbsp;&nbsp;&nbsp;December 31 | &nbsp;&nbsp;&nbsp;27.65 | &nbsp;&nbsp;&nbsp;27.65 |
| &nbsp;&nbsp;&nbsp;Newmain I funds (\*5) | &nbsp;&nbsp;&nbsp;Korea | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;36.36 |
| &nbsp;&nbsp;&nbsp;Igis General PE Real Estate Investment Trust 517-1 (\*6) | &nbsp;&nbsp;&nbsp;Korea | &nbsp;&nbsp;&nbsp;December 31 | &nbsp;&nbsp;&nbsp;96.71 | &nbsp;&nbsp;&nbsp;96.78 |
| &nbsp;&nbsp;&nbsp;SH Ulmus M.P.E. Innovative Venture Fund 7 | &nbsp;&nbsp;&nbsp;Korea | &nbsp;&nbsp;&nbsp;December 31 | &nbsp;&nbsp;&nbsp;28.57 | &nbsp;&nbsp;&nbsp;28.57 |
| &nbsp;&nbsp;&nbsp;Consus Osansegyo No.2 | &nbsp;&nbsp;&nbsp;Korea | &nbsp;&nbsp;&nbsp;December 31 | &nbsp;&nbsp;&nbsp;50.00 | &nbsp;&nbsp;&nbsp;50.00 |
| &nbsp;&nbsp;&nbsp;Shinhan AIM Private Fund of Fund 9-B | &nbsp;&nbsp;&nbsp;Korea | &nbsp;&nbsp;&nbsp;December 31 | &nbsp;&nbsp;&nbsp;25.00 | &nbsp;&nbsp;&nbsp;25.00 |
| &nbsp;&nbsp;&nbsp;Shinhan General Private Real Estate Investment Trust No.3 | &nbsp;&nbsp;&nbsp;Korea | &nbsp;&nbsp;&nbsp;December 31 | &nbsp;&nbsp;&nbsp;20.75 | &nbsp;&nbsp;&nbsp;20.75 |
| &nbsp;&nbsp;&nbsp;Paros Kosdaq Venture General Private Investment Trust No. 5  | &nbsp;&nbsp;&nbsp;Korea | &nbsp;&nbsp;&nbsp;December 31 | &nbsp;&nbsp;&nbsp;29.45 | &nbsp;&nbsp;&nbsp;28.56 |
| &nbsp;&nbsp;&nbsp;Shinhan-soo secondary Fund (\*6) | &nbsp;&nbsp;&nbsp;Korea | &nbsp;&nbsp;&nbsp;December 31 | &nbsp;&nbsp;&nbsp;77.61 | &nbsp;&nbsp;&nbsp;77.61 |
| &nbsp;&nbsp;&nbsp;TECHFIN RATINGS Co., Ltd. (\*1) | &nbsp;&nbsp;&nbsp;Korea | &nbsp;&nbsp;&nbsp;September 30 | &nbsp;&nbsp;&nbsp;45.00 | &nbsp;&nbsp;&nbsp;45.00 |
| &nbsp;&nbsp;&nbsp;Songpa biz cluster PFV Co., Ltd. (\*1), (\*7), (\*10) | &nbsp;&nbsp;&nbsp;Korea | &nbsp;&nbsp;&nbsp;September 30 | &nbsp;&nbsp;&nbsp;27.40 | &nbsp;&nbsp;&nbsp;27.40 |
| &nbsp;&nbsp;&nbsp;Planeta PTE LTD | &nbsp;&nbsp;&nbsp;Singapore | &nbsp;&nbsp;&nbsp;December 31 | &nbsp;&nbsp;&nbsp;33.33 | &nbsp;&nbsp;&nbsp;33.33 |
| &nbsp;&nbsp;&nbsp;The E&Shinhan New Growth Up Fund | &nbsp;&nbsp;&nbsp;Korea | &nbsp;&nbsp;&nbsp;December 31 | &nbsp;&nbsp;&nbsp;50.00 | &nbsp;&nbsp;&nbsp;50.00 |
| &nbsp;&nbsp;&nbsp;HHR Special Situation Real Estate Private Investment Trust No. 13 | &nbsp;&nbsp;&nbsp;Korea | &nbsp;&nbsp;&nbsp;December 31 | &nbsp;&nbsp;&nbsp;20.00 | &nbsp;&nbsp;&nbsp;20.00 |
| &nbsp;&nbsp;&nbsp;Shinhan-GB FutureFlow Fund L.P.  | &nbsp;&nbsp;&nbsp;Korea | &nbsp;&nbsp;&nbsp;December 31 | &nbsp;&nbsp;&nbsp;50.00 | &nbsp;&nbsp;&nbsp;58.18 |
| &nbsp;&nbsp;&nbsp;Credila Financial Services (\*1), (\*7) | &nbsp;&nbsp;&nbsp;India | &nbsp;&nbsp;&nbsp;September 30 | &nbsp;&nbsp;&nbsp;10.06 | &nbsp;&nbsp;&nbsp;10.93 |
| &nbsp;&nbsp;&nbsp;Shinhan-DS Mezzanine Fund 1 (\*7) | &nbsp;&nbsp;&nbsp;Korea | &nbsp;&nbsp;&nbsp;December 31 | &nbsp;&nbsp;&nbsp;15.09 | &nbsp;&nbsp;&nbsp;15.09 |
| &nbsp;&nbsp;&nbsp;Shinhan Time BM sobujang Fund | &nbsp;&nbsp;&nbsp;Korea | &nbsp;&nbsp;&nbsp;December 31 | &nbsp;&nbsp;&nbsp;29.41 | &nbsp;&nbsp;&nbsp;29.41 |
| &nbsp;&nbsp;&nbsp;Tigris Fund No. 58 | &nbsp;&nbsp;&nbsp;Korea | &nbsp;&nbsp;&nbsp;December 31 | &nbsp;&nbsp;&nbsp;20.83 | &nbsp;&nbsp;&nbsp;20.83 |
| &nbsp;&nbsp;&nbsp;Shinhan Market-Frontier Fund Ⅲ | &nbsp;&nbsp;&nbsp;Korea | &nbsp;&nbsp;&nbsp;December 31 | &nbsp;&nbsp;&nbsp;44.02 | &nbsp;&nbsp;&nbsp;44.02 |
| &nbsp;&nbsp;&nbsp;DB IPO HighYield Fund 1 (\*5) | &nbsp;&nbsp;&nbsp;Korea | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;28.57 |
| &nbsp;&nbsp;&nbsp;Exponential SQUARE Private Investment Trust No.1 (\*5) | &nbsp;&nbsp;&nbsp;Korea | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;50.99 |
| &nbsp;&nbsp;&nbsp;Fine North America Credit Private Mixed Asset Investment Trust 22 (\*6) | &nbsp;&nbsp;&nbsp;Korea | &nbsp;&nbsp;&nbsp;December 31 | &nbsp;&nbsp;&nbsp;58.82 | &nbsp;&nbsp;&nbsp;58.82 |
| &nbsp;&nbsp;&nbsp;IGIS Private Real Estate Investment No.454 | &nbsp;&nbsp;&nbsp;Korea | &nbsp;&nbsp;&nbsp;December 31 | &nbsp;&nbsp;&nbsp;24.04 | &nbsp;&nbsp;&nbsp;24.04 |
| &nbsp;&nbsp;&nbsp;IGIS Private Real Estate Investment No.462 (\*6) | &nbsp;&nbsp;&nbsp;Korea | &nbsp;&nbsp;&nbsp;December 31 | &nbsp;&nbsp;&nbsp;69.20 | &nbsp;&nbsp;&nbsp;69.20 |
| &nbsp;&nbsp;&nbsp;BNW Recharge Private Equity Fund | &nbsp;&nbsp;&nbsp;Korea | &nbsp;&nbsp;&nbsp;December 31 | &nbsp;&nbsp;&nbsp;21.13 | &nbsp;&nbsp;&nbsp;21.13 |
| &nbsp;&nbsp;&nbsp;United Partners Realasset Fund No.14 | &nbsp;&nbsp;&nbsp;Korea | &nbsp;&nbsp;&nbsp;December 31 | &nbsp;&nbsp;&nbsp;33.33 | &nbsp;&nbsp;&nbsp;33.33 |
| &nbsp;&nbsp;&nbsp;Shinhan Securities HIFI Bond SafeR 2Y Private Fund No.12 (\*5) | &nbsp;&nbsp;&nbsp;Korea | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;5.00 |
| &nbsp;&nbsp;&nbsp;Shinhan Securities HIFI Bond SafeR 2Y Private Fund No.13 (\*5) | &nbsp;&nbsp;&nbsp;Korea | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;5.00 |
| &nbsp;&nbsp;&nbsp;Shinhan Securities HIFI Bond SafeR 2Y Private Fund No.14 (\*7) | &nbsp;&nbsp;&nbsp;Korea | &nbsp;&nbsp;&nbsp;December 31 | &nbsp;&nbsp;&nbsp;7.67 | &nbsp;&nbsp;&nbsp;5.00 |
| &nbsp;&nbsp;&nbsp;Shinhan Securities HIFI Bond SafeR 2Y Private Fund No.15 (\*7) | &nbsp;&nbsp;&nbsp;Korea | &nbsp;&nbsp;&nbsp;December 31 | &nbsp;&nbsp;&nbsp;7.79 | &nbsp;&nbsp;&nbsp;5.00 |
| &nbsp;&nbsp;&nbsp;Shinhan Securities HIFI Bond SafeR 2Y Private Fund No.16 (\*7) | &nbsp;&nbsp;&nbsp;Korea | &nbsp;&nbsp;&nbsp;December 31 | &nbsp;&nbsp;&nbsp;7.67 | &nbsp;&nbsp;&nbsp;5.00 |
| &nbsp;&nbsp;&nbsp;Shinhan Securities HIFI Bond SafeR 2Y Private Fund No.17 (\*7) | &nbsp;&nbsp;&nbsp;Korea | &nbsp;&nbsp;&nbsp;December 31 | &nbsp;&nbsp;&nbsp;7.40 | &nbsp;&nbsp;&nbsp;5.00 |
| &nbsp;&nbsp;&nbsp;Shinhan Securities HIFI Bond SafeR 2Y Private Fund No.18 (\*7) | &nbsp;&nbsp;&nbsp;Korea | &nbsp;&nbsp;&nbsp;December 31 | &nbsp;&nbsp;&nbsp;6.39 | &nbsp;&nbsp;&nbsp;5.00 |
| &nbsp;&nbsp;&nbsp;Shinhan Securities HIFI Bond SafeR 2Y Private Fund No.19 (\*7) | &nbsp;&nbsp;&nbsp;Korea | &nbsp;&nbsp;&nbsp;December 31 | &nbsp;&nbsp;&nbsp;6.55 | &nbsp;&nbsp;&nbsp;5.00 |
| &nbsp;&nbsp;&nbsp;SH US Buyback&High Dividend Security Feeder Investment Trust(H)[Equity] (\*7) | &nbsp;&nbsp;&nbsp;Korea | &nbsp;&nbsp;&nbsp;December 31 | &nbsp;&nbsp;&nbsp;19.91 | &nbsp;&nbsp;&nbsp;22.37 |
| &nbsp;&nbsp;&nbsp;SH Prestige High Dividend Security Feeder No.1[Equity] | &nbsp;&nbsp;&nbsp;Korea | &nbsp;&nbsp;&nbsp;December 31 | &nbsp;&nbsp;&nbsp;23.92 | &nbsp;&nbsp;&nbsp;21.55 |
| &nbsp;&nbsp;&nbsp;IGIS Real Estate General Private Feeder Investment Company No.562 (\*6) | &nbsp;&nbsp;&nbsp;Korea | &nbsp;&nbsp;&nbsp;December 31 | &nbsp;&nbsp;&nbsp;88.46 | &nbsp;&nbsp;&nbsp;- |
| &nbsp;&nbsp;&nbsp;Shinhan Securities HIFI Bond SafeR 2Y Private Fund No.21 (\*7) | &nbsp;&nbsp;&nbsp;Korea | &nbsp;&nbsp;&nbsp;December 31 | &nbsp;&nbsp;&nbsp;4.97 | &nbsp;&nbsp;&nbsp;- |
| &nbsp;&nbsp;&nbsp;Shinhan Securities HIFI Bond SafeR 2Y Private Fund No.22 (\*7) | &nbsp;&nbsp;&nbsp;Korea | &nbsp;&nbsp;&nbsp;December 31 | &nbsp;&nbsp;&nbsp;4.97 | &nbsp;&nbsp;&nbsp;- |
| &nbsp;&nbsp;&nbsp;Shinhan Securities HIFI Bond SafeR 2Y Private Fund No.23 (\*7) | &nbsp;&nbsp;&nbsp;Korea | &nbsp;&nbsp;&nbsp;December 31 | &nbsp;&nbsp;&nbsp;4.97 | &nbsp;&nbsp;&nbsp;- |
| &nbsp;&nbsp;&nbsp;Finflow (\*7) | &nbsp;&nbsp;&nbsp;Korea | &nbsp;&nbsp;&nbsp;December 31 | &nbsp;&nbsp;&nbsp;15.00 | &nbsp;&nbsp;&nbsp;- |
| &nbsp;&nbsp;&nbsp;Fireant Media and Digital Service Joint Stock Company (\*7) | &nbsp;&nbsp;&nbsp;Korea | &nbsp;&nbsp;&nbsp;December 31 | &nbsp;&nbsp;&nbsp;17.66 | &nbsp;&nbsp;&nbsp;- |
| &nbsp;&nbsp;&nbsp;ST EIP Holdings Inc. | &nbsp;&nbsp;&nbsp;Korea | &nbsp;&nbsp;&nbsp;December 31 | &nbsp;&nbsp;&nbsp;49.00 | &nbsp;&nbsp;&nbsp;- |
| &nbsp;&nbsp;&nbsp;AMP Capital Global Infrastructure Fund II B L (\*7) | &nbsp;&nbsp;&nbsp;Korea | &nbsp;&nbsp;&nbsp;December 31 | &nbsp;&nbsp;&nbsp;1.50 | &nbsp;&nbsp;&nbsp;- |
| &nbsp;&nbsp;&nbsp;Post CR REITS No.1 (\*6) | &nbsp;&nbsp;&nbsp;Korea | &nbsp;&nbsp;&nbsp;December 31 | &nbsp;&nbsp;&nbsp;70.00 | &nbsp;&nbsp;&nbsp;- |
| &nbsp;&nbsp;&nbsp;SH US Long Term Treasury Plus Security Feeder Investment Trust(H)[Bond-FoFs] | &nbsp;&nbsp;&nbsp;Korea | &nbsp;&nbsp;&nbsp;December 31 | &nbsp;&nbsp;&nbsp;23.30 | &nbsp;&nbsp;&nbsp;- |

---

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**16. <u>Investments in associates (continued)</u>**

(a) Investments in associates as of December 31, 2025 and 2024 are as follows (continued):

(\*1) As the financial statements as of December 31, 2025 were not available, the most recent financial statements available after the reporting date were used in applying the equity method. Significant transactions and events that occurred during the period have been appropriately reflected.

(\*2) Shares were acquired through a debt-to-equity swap during the rehabilitation process. Although voting rights could not be exercised during the rehabilitation process, normal voting rights became exercisable as the rehabilitation process ended before December 31, 2025. Therefore, it has been reclassified from financial assets measured at fair value through profit or loss(FVTPL) to investments in associates.

(\*3) As a managing partner, the Group has a significant influence over the investees.

(\*4) As a limited partner, the Group does not have an ability to participate in policy-making processes to obtain economic benefit from the investees that would allow the Group to control the entity.

(\*5) Excluded from the investments in associates due to full or partial disposal of shares, or loss of significant influence.

(\*6) Although the ownership percentages are more than 50%, the Group applies the equity method accounting as the Group does not have an ability to participate in the financial and operating policy-making process.

(\*7) Although the ownership percentages are less than 20%, the Group applies the equity method accounting since it participates in policy-making processes and therefore can exercise significant influence on investees.

(\*8) The rate of Group's voting rights is 4.65%.

(\*9) Although the Group has a significant influence with ownership percentage more than 50%, the contribution was classified as investments in associates as the Group is not exposed to variable returns due to the payment guarantee for the entire investment amount.

(\*10) The rate of Group's voting rights is 19.86%.

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**16. <u>Investments in associates (continued)</u>**

(b)Changes in investments in associates for the years ended December 31, 2025 and 2024 are as follows:

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | &nbsp;&nbsp;&nbsp;&nbsp;**December 31, 2025** | &nbsp;&nbsp;&nbsp;&nbsp;**December 31, 2025** | &nbsp;&nbsp;&nbsp;&nbsp;**December 31, 2025** | &nbsp;&nbsp;&nbsp;&nbsp;**December 31, 2025** | &nbsp;&nbsp;&nbsp;&nbsp;**December 31, 2025** | &nbsp;&nbsp;&nbsp;&nbsp;**December 31, 2025** |
| **Investees** |  | **Beginning**<br>**balance** | <br>**Investment**<br>**and**<br>**dividend** | **Equity**<br>**method**<br>**income**<br>**(loss)** | **Change in**<br>**other comprehensive income** | &nbsp;&nbsp;&nbsp;&nbsp;**Impairment**<br>**loss** | &nbsp;&nbsp;&nbsp;&nbsp;**Ending**<br>**balance** |
| &nbsp;&nbsp;&nbsp;BNP Paribas Cardif Life Insurance | W | 36436  | - | (2105) | 2146  | - | 36477  |
| &nbsp;&nbsp;&nbsp;Shinhan-Neoplux Energy Newbiz Fund |  | 14612  | - | (1590) | - | - | 13022  |
| &nbsp;&nbsp;&nbsp;Shinhan-Albatross tech investment Fund |  | 8672  | (2017) | (989) | - | - | 5666  |
| &nbsp;&nbsp;&nbsp;VOGO Debt Strategy Qualified IV Private |  | 3713  | (1863) | (12) | - | - | 1838  |
| &nbsp;&nbsp;&nbsp;Shinhan-Midas Donga Secondary Fund |  | 3152  | (915) | (528) | - | - | 1709  |
| &nbsp;&nbsp;&nbsp;ShinHan – Soo Young Entrepreneur Investment Fund No.1 |  | 3381  | (1340) | (297) | - | - | 1744  |
| &nbsp;&nbsp;&nbsp;Shinhan Praxis K-Growth Global Private Equity Fund |  | 3690  | - | - | - | - | 3690  |
| &nbsp;&nbsp;Kiwoom Milestone Professional Private Real Estate Trust 19 (\*) |  | - | - | - | - | - | - |
| &nbsp;&nbsp;&nbsp;Shinhan Global Healthcare Fund 1 (\*) |  | - | - | - | - | - | - |
| &nbsp;&nbsp;&nbsp;KB NA Hickory Private Special Asset Fund |  | 17493  | (17628) | 135  | - | - | - |
| &nbsp;&nbsp;&nbsp;Koramco Europe Core Private Placement Real Estate Fund No.2-2 (\*) |  | 6815  | - | (618) | - | (771) | 5426  |
| &nbsp;&nbsp;&nbsp;Shinhan-Nvestor Liquidity Solution Fund |  | 5126  | (1250) | (147) | - | - | 3729  |
| &nbsp;&nbsp;&nbsp;Shinhan AIM FoF Fund 1-A |  | 9804  | (9813) | 10  | - | - | 1  |
| &nbsp;&nbsp;&nbsp;IGIS Global Credit Fund 150-1 |  | 4989  | (2979) | (1017) | - | - | 993  |
| &nbsp;&nbsp;&nbsp;Nomura-Rifa Private Real Estate Investment Trust 19 (\*) |  | 1939  | (13) | 80  | - | (2006) | - |
| &nbsp;&nbsp;&nbsp;Genesis North America Power Company No.1 PEF |  | 6802  | (1254) | 523  | - | - | 6071  |
| &nbsp;&nbsp;&nbsp;SH MAIN Professional Investment Type Private Mixed Asset Investment Trust No.3 |  | 9402  | (11201) | 1799  | - | - | - |
| &nbsp;&nbsp;&nbsp;Korea Finance Security Co., Ltd. |  | 3542  | - | 307  | - | - | 3849  |
| &nbsp;&nbsp;&nbsp;MIEL Co., Ltd. (\*) |  | - | - | - | - | - | - |
| &nbsp;&nbsp;&nbsp;AIP Transportation Specialized Privately Placed Fund Trust #1 |  | 58807  | 1505  | 2459  | - | - | 62771  |
| &nbsp;&nbsp;&nbsp;Kiwoom-Shinhan Innovation Fund I |  | 7979  | - | (225) | - | - | 7754  |
| &nbsp;&nbsp;&nbsp;Samchully Midstream Private Placement Special Asset Fund 5-4 |  | 39484  | (1871) | (2666) | - | - | 34947  |
| &nbsp;&nbsp;&nbsp;MK Ventures-K Clavis Growth Capital Venture Fund 1 (\*) |  | 3  | - | (1) | - | - | 2  |
| &nbsp;&nbsp;&nbsp;Vestas Qualified Investors Private Real Estate Fund Investment Trust No.37 |  | 35413  | (1678) | (1648) | - | - | 32087  |
| &nbsp;&nbsp;&nbsp;Milestone Private Real Estate Fund 3  |  | 19120  | 1789  | 367  | - | - | 21276  |
| &nbsp;&nbsp;&nbsp;Nomura-Rifa Private Real Estate Investment Trust 31  |  | 6343  | (98) | (159) | - | - | 6086  |
| &nbsp;&nbsp;&nbsp;FuturePlay-Shinhan TechInnovation Fund 1 |  | 5785  | - | 517  | - | - | 6302  |
| &nbsp;&nbsp;&nbsp;Stonebridge Corporate 1st Fund |  | 3977  | (3367) | (610) | - | - | - |
| &nbsp;&nbsp;&nbsp;Vogo Realty Partners Private Real Estate Fund V |  | 10662  | (225) | (166) | - | - | 10271  |
| &nbsp;&nbsp;&nbsp;Korea Credit Bureau  |  | 7574  | (90) | 2654  | - | - | 10138  |
| &nbsp;&nbsp;&nbsp;Goduck Gangil1 PFV Co., Ltd. (\*) |  | 96  | (25) | (8) | - | - | 63  |
| &nbsp;&nbsp;&nbsp;SBC PFV Co., Ltd. |  | 37616  | - | (2662) | - | - | 34954  |
| &nbsp;&nbsp;&nbsp;NH-amundi global infra private fund 16 (\*) |  | 32968  | 6422  | (9385) | - | (2205) | 27800  |
| &nbsp;&nbsp;&nbsp;SH BNCT Professional Investment Type Private Special Asset Investment Trust |  | 225708  | (29542) | 9837  | - | - | 206003  |
| &nbsp;&nbsp;&nbsp;IGIS Real-estate Private Investment Trust No.33 |  | 15632  | (9746) | 878  | - | - | 6764  |

---

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**16. <u>Investments in associates (continued)</u>**

(b) Changes in investments in associates for the years ended December 31, 2025 and 2024 are as follows

(continued):

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | &nbsp;&nbsp;&nbsp;&nbsp;**December 31, 2025** | &nbsp;&nbsp;&nbsp;&nbsp;**December 31, 2025** | &nbsp;&nbsp;&nbsp;&nbsp;**December 31, 2025** | &nbsp;&nbsp;&nbsp;&nbsp;**December 31, 2025** | &nbsp;&nbsp;&nbsp;&nbsp;**December 31, 2025** | &nbsp;&nbsp;&nbsp;&nbsp;**December 31, 2025** |
| **Investees** |  | **Beginning**<br>**balance** | <br>**Investment**<br>**and**<br>**dividend** | **Equity**<br>**method**<br>**income**<br>**(loss)** | **Change in**<br>**other comprehensive income** | &nbsp;&nbsp;&nbsp;&nbsp;**Impairment**<br>**loss** | &nbsp;&nbsp;&nbsp;&nbsp;**Ending**<br>**balance** |
| &nbsp;&nbsp;&nbsp;Goduck Gangil10 PFV Co., Ltd. | W | 6165  | (1030) | (379) | (4756) | - | - |
| &nbsp;&nbsp;&nbsp;Fidelis Global Private Real Estate Trust No.2 (\*) |  | 551  | - | - | - | - | 551  |
| &nbsp;&nbsp;&nbsp;AIP EURO PRIVATE REAL ESTATE TRUST No. 12 (\*) |  | 24644  | - | - | - | (7792) | 16852  |
| &nbsp;&nbsp;&nbsp;Shinhan Global Healthcare Fund 2 (\*) |  | - | - | - | - | - | - |
| &nbsp;&nbsp;&nbsp;Shinhan AIM Real Estate Fund No.1 |  | 2884  | - | 3620  | - | - | 6504  |
| &nbsp;&nbsp;&nbsp;SH Daegu Green Power Cogeneration System Professional Investment Type Private Special Asset Investment Trust  |  | 39491  | (858) | 640  | - | - | 39273  |
| &nbsp;&nbsp;&nbsp;SH Sangju YC Expressway Professional Investment Type Private Special Asset Investment Trust |  | 21947  | 11  | (2176) | - | - | 19782  |
| &nbsp;&nbsp;&nbsp;SH Global Infrastructure Professional Investment Type Private Special Asset Investment Trust No.7-2  |  | 15770  | (521) | 423  | - | - | 15672  |
| &nbsp;&nbsp;&nbsp;Korea Omega-Shinhan Project Fund I |  | 19473  | (31903) | 17793  | - | - | 5363  |
| &nbsp;&nbsp;&nbsp;Samsung SRA Real Estate Professional Private 45 |  | 30276  | (2887) | 1642  | - | - | 29031  |
| &nbsp;&nbsp;&nbsp;IBK Global New Renewable Energy Special Asset Professional Private2 |  | 33098  | (5805) | 755  | - | - | 28048  |
| &nbsp;&nbsp;&nbsp;VS Cornerstone Fund |  | 3225  | (3618) | 393  | - | - | - |
| &nbsp;&nbsp;&nbsp;Kakao-Shinhan 1st TNYT Fund |  | 23678  | - | 128  | - | - | 23806  |
| &nbsp;&nbsp;&nbsp;Pacific Private Placement Real Estate Fund No.40 |  | 11623  | (747) | 8176  | - | - | 19052  |
| &nbsp;&nbsp;&nbsp;LB Scotland Amazon Fulfillment Center Fund 29  |  | 18848  | 6351  | (2262) | - | - | 22937  |
| &nbsp;&nbsp;&nbsp;JR AMC Hungary Budapest Office Fund 16 |  | 13187  | 1127  | 43  | - | - | 14357  |
| &nbsp;&nbsp;&nbsp;Gyeonggi-Neoplux Superman Fund |  | 4138  | - | 70  | - | - | 4208  |
| &nbsp;&nbsp;&nbsp;NewWave 6th Fund |  | 10708  | - | (872) | - | - | 9836  |
| &nbsp;&nbsp;&nbsp;Neoplux No.3 Private Equity Fund |  | 12152  | (20) | (1923) | - | - | 10209  |
| &nbsp;&nbsp;&nbsp;PCC Amberstone Private Equity Fund I |  | 14540  | (6457) | (66) | - | - | 8017  |
| &nbsp;&nbsp;&nbsp;KIAMCO POWERLOAN TRUST 4TH |  | 48703  | (2796) | 893  | - | - | 46800  |
| &nbsp;&nbsp;&nbsp;Mastern Opportunity Seeking Real Estate Fund II |  | 5272  | (4873) | 749  | - | - | 1148  |
| &nbsp;&nbsp;&nbsp;Neoplux Market-Frontier Secondary Fund  |  | 8175  | - | (2613) | - | - | 5562  |
| &nbsp;&nbsp;&nbsp;Synergy Green New Deal 1st New Technology Business Investment Fund |  | 10857  | (10841) | (16) | - | - | - |
| &nbsp;&nbsp;&nbsp;KIAMCO Vietnam Solar Special Asset Private Investment Trust |  | 7103  | - | (201) | - | - | 6902  |
| &nbsp;&nbsp;&nbsp;SHINHAN-NEO Core Industrial Technology Fund |  | 8111  | - | (1011) | - | - | 7100  |
| &nbsp;&nbsp;&nbsp;SHBNPP Green New Deal Energy Professional Investment Type Private Special Asset Investment Trust No.2 |  | 21710  | (2514) | 962  | - | - | 20158  |
| &nbsp;&nbsp;&nbsp;Eum Private Equity Fund No.7 |  | 9156  | (405) | 783  | - | - | 9534  |
| &nbsp;&nbsp;&nbsp;Kiwoom Hero No.4 Private Equity Fund |  | 4197  | (9523) | 5326  | - | - | - |
| &nbsp;&nbsp;&nbsp;AJ-KOSNET Semicon One Venture Fund |  | 3212  | - | (51) | - | - | 3161  |
| &nbsp;&nbsp;&nbsp;Shinhan Smilegate Global PEF I |  | 3882  | (3882) | - | - | - | - |
| &nbsp;&nbsp;&nbsp;Genesis Eco No.1 PEF |  | 11077  | - | (2305) | - | - | 8772  |

---

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**16. <u>Investments in associates (continued)</u>**

(b) Changes in investments in associates for the years ended December 31, 2025 and 2024 are as follows

(continued):

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | &nbsp;&nbsp;&nbsp;&nbsp;**December 31, 2025** | &nbsp;&nbsp;&nbsp;&nbsp;**December 31, 2025** | &nbsp;&nbsp;&nbsp;&nbsp;**December 31, 2025** | &nbsp;&nbsp;&nbsp;&nbsp;**December 31, 2025** | &nbsp;&nbsp;&nbsp;&nbsp;**December 31, 2025** | &nbsp;&nbsp;&nbsp;&nbsp;**December 31, 2025** |
| **Investees** |  | **Beginning**<br>**balance** | <br>**Investment**<br>**and**<br>**dividend** | **Equity**<br>**method**<br>**income**<br>**(loss)** | **Change in**<br>**other comprehensive income** | &nbsp;&nbsp;&nbsp;&nbsp;**Impairment**<br>**loss** | &nbsp;&nbsp;&nbsp;&nbsp;**Ending**<br>**balance** |
| &nbsp;&nbsp;&nbsp;SHINHAN-NEO Market-Frontier 2nd Fund | W | 27499  | (4014) | 1133  | - | - | 24618  |
| &nbsp;&nbsp;&nbsp;J& Moorim Jade Investment Fund |  | 5353  | (7579) | 2226  | - | - | - |
| &nbsp;&nbsp;&nbsp;Ulmus SHC innovation investment fund |  | 4305  | - | 1302  | - | - | 5607  |
| &nbsp;&nbsp;&nbsp;T Core Industrial Technology 1st Venture PEF |  | 2995  | - | 61  | - | - | 3056  |
| &nbsp;&nbsp;&nbsp;TI First Property Private Investment Trust 1 |  | 3102  | (4248) | 2046  | - | - | 900  |
| &nbsp;&nbsp;&nbsp;Kiwoom-Shinhan Innovation Fund 2 |  | 10227  | (3771) | 6223  | - | - | 12679  |
| &nbsp;&nbsp;&nbsp;ETRI Holdings-Shinhan 1st Unicorn Fund |  | 4696  | (500) | (72) | - | - | 4124  |
| &nbsp;&nbsp;&nbsp;SJ ESG Innovative Growth Fund |  | 3115  | (2458) | (657) | - | - | - |
| &nbsp;&nbsp;&nbsp;AVES 1st Corporate Recovery Private Equity Fund |  | 4523  | - | (25) | - | - | 4498  |
| &nbsp;&nbsp;&nbsp;Reverent-Shinhan Vista Fund  |  | 3409  | 54  | 300  | - | - | 3763  |
| &nbsp;&nbsp;&nbsp;JS Shinhan Private Equity Fund  |  | 6381  | - | (119) | - | - | 6262  |
| &nbsp;&nbsp;&nbsp;Meta TB ESG Private Equity Fund I |  | 5683  | - | (91) | - | - | 5592  |
| &nbsp;&nbsp;&nbsp;Shinhan VC tomorrow venture fund 1 |  | 70633  | 2214  | 29693  | - | - | 102540  |
| &nbsp;&nbsp;&nbsp;H-IOTA Fund |  | 9377  | (9615) | 238  | - | - | - |
| &nbsp;&nbsp;&nbsp;Stonebridge-Shinhan Unicorn Secondary Fund  |  | 13587  | (2002) | 1497  | - | - | 13082  |
| &nbsp;&nbsp;&nbsp;Tres-Yujin Trust  |  | 13031  | - | 115  | - | - | 13146  |
| &nbsp;&nbsp;&nbsp;Shinhan-Time mezzanine blind Fund |  | 16426  | (16504) | 78  | - | - | - |
| &nbsp;&nbsp;&nbsp;Capstone REITs No.26 |  | 5369  | - | (300) | - | - | 5069  |
| &nbsp;&nbsp;&nbsp;JB Incheon-Bucheon REITS No.54 |  | 4967  | - | 818  | - | - | 5785  |
| &nbsp;&nbsp;&nbsp;Hankook Smart Real Asset Investment Trust No.3 |  | 6006  | (1515) | (2408) | - | - | 2083  |
| &nbsp;&nbsp;&nbsp;JB Hwaseong-Hadong REITs No.53 |  | 4974  | (5195) | 1014  | - | - | 793  |
| &nbsp;&nbsp;&nbsp;KB Oaktree Trust No.3 |  | 9888  | (1118) | 544  | - | - | 9314  |
| &nbsp;&nbsp;&nbsp;KAI-The Square Fund 1 (\*) |  | 125  | - | 30  | - | (144) | 11  |
| &nbsp;&nbsp;&nbsp;SH Real Estate Loan Investment Type Private Real Estate Investment Trust No.2 |  | 52797  | (24390) | 3141  | - | - | 31548  |
| &nbsp;&nbsp;&nbsp;Shinhan JigaeNamsan Road Private Special Asset Investment Trust |  | 39645  | (901) | 1552  | - | - | 40296  |
| &nbsp;&nbsp;&nbsp;KB Distribution Private Real Estate 3-1 (\*) |  | 24079  | - | (939) | - | (23140) | - |
| &nbsp;&nbsp;&nbsp;Pacific Private Investment Trust No.49-1  |  | 28000  | - | 8678  | - | - | 36678  |
| &nbsp;&nbsp;&nbsp;KIWOOM Real estate private placement fund for normal investors No. 31 (\*) |  | 8032  | - | 14  | - | (8046) | - |
| &nbsp;&nbsp;&nbsp;RIFA Real estate private placement fund for normal investors No. 51 (\*) |  | 5371  | - | 9  | - | (5380) | - |
| &nbsp;&nbsp;&nbsp;Shinhan-Kunicorn first Fund |  | 9424  | - | (1723) | - | - | 7701  |
| &nbsp;&nbsp;&nbsp;Shinhan-Quantum Startup Fund |  | 5665  | - | (117) | - | - | 5548  |
| &nbsp;&nbsp;&nbsp;Shinhan Simone Fund Ⅰ |  | 3422  | (1962) | 36  | - | - | 1496  |
| &nbsp;&nbsp;&nbsp;Korea Investment develop seed Trust No.1 |  | 10145  | (527) | 1112  | - | - | 10730  |
| &nbsp;&nbsp;&nbsp;Tiger Green alpha Trust No.29  |  | 29992  | (31100) | 1108  | - | - | - |
| &nbsp;&nbsp;&nbsp;STIC ALT Global II Private Equity Fund |  | 9841  | (217) | 169  | - | - | 9793  |
| &nbsp;&nbsp;&nbsp;DDI LVC Master Real Estate Investment Trust Co., Ltd. |  | 5800  | - | (1141) | - | - | 4659  |

---

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**16. <u>Investments in associates (continued)</u>**

(b) Changes in investments in associates for the years ended December 31, 2025 and 2024 are as follows

(continued):

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | &nbsp;&nbsp;&nbsp;&nbsp;**December 31, 2025** | &nbsp;&nbsp;&nbsp;&nbsp;**December 31, 2025** | &nbsp;&nbsp;&nbsp;&nbsp;**December 31, 2025** | &nbsp;&nbsp;&nbsp;&nbsp;**December 31, 2025** | &nbsp;&nbsp;&nbsp;&nbsp;**December 31, 2025** | &nbsp;&nbsp;&nbsp;&nbsp;**December 31, 2025** |
| **Investees** |  | **Beginning**<br>**balance** | <br>**Investment**<br>**and**<br>**dividend** | **Equity**<br>**method**<br>**income**<br>**(loss)** | **Change in**<br>**other comprehensive income** | &nbsp;&nbsp;&nbsp;&nbsp;**Impairment**<br>**loss** | &nbsp;&nbsp;&nbsp;&nbsp;**Ending**<br>**balance** |
| &nbsp;&nbsp;&nbsp;Find-Green New Deal 2nd Equity Fund | W | 4324  | - | 402  | - | - | 4726  |
| &nbsp;&nbsp;&nbsp;ShinhanFitrin 1st Technology Business Investment Association  |  | 4232  | - | (298) | - | - | 3934  |
| &nbsp;&nbsp;&nbsp;Koramco Private Real Estate Fund 143 |  | 6669  | - | 1423  | - | - | 8092  |
| &nbsp;&nbsp;&nbsp;Korea Investment Top Mezzanine Private Real Estate Trust No.1 |  | 9876  | (5701) | (1135) | - | - | 3040  |
| &nbsp;&nbsp;&nbsp;LB YoungNam Logistics Private Trust No.40 |  | 9625  | (600) | 687  | - | - | 9712  |
| &nbsp;&nbsp;&nbsp;Shinhan-Cognitive Start-up Fund L.P. |  | 4209  | - | (62) | - | - | 4147  |
| &nbsp;&nbsp;&nbsp;Cornerstone J&M Fund I |  | 3414  | (4109) | 695  | - | - | - |
| &nbsp;&nbsp;&nbsp;Logisvalley Shinhan REIT Co., Ltd.  |  | 3389  | - | (144) | - | - | 3245  |
| &nbsp;&nbsp;&nbsp;Shinhan-G.N.Tech Smart Innovation Fund |  | 13004  | (4160) | 2130  | - | - | 10974  |
| &nbsp;&nbsp;&nbsp;Shinhan-Gene and New Normal First Mover Venture Investment Equity Fund 1st |  | 6758  | 1800  | (366) | - | - | 8192  |
| &nbsp;&nbsp;&nbsp;Korea Investment Green Newdeal Infra Trust No.1 |  | 16096  | 1418  | (75) | - | - | 17439  |
| &nbsp;&nbsp;&nbsp;BTS 2nd Private Equity Fund |  | 10159  | 806  | (27) | - | - | 10938  |
| &nbsp;&nbsp;&nbsp;NH-J&-IBKC Label Technology Fund |  | 9646  | (5396) | 4031  | - | - | 8281  |
| &nbsp;&nbsp;&nbsp;Shinhan-Sneak Peek Bio&Healthcare Bounce Back Fund |  | 3916  | (1150) | 1187  | - | - | 3953  |
| &nbsp;&nbsp;&nbsp;Shinhan-isquare Venture PEF 1 |  | 4237  | (874) | (62) | - | - | 3301  |
| &nbsp;&nbsp;&nbsp;Aurum Goldrush ESG Private Fund No. 1 |  | 3007  | - | (438) | - | - | 2569  |
| &nbsp;&nbsp;&nbsp;Capstone Develop Frontier Trust |  | 8049  | (7607) | (442) | - | - | - |
| &nbsp;&nbsp;&nbsp;Nextrade Co., Ltd. |  | 9700  | - | - | - | - | 9700  |
| &nbsp;&nbsp;&nbsp;IBKC-Behigh Fund 1st |  | 3160  | - | (64) | - | - | 3096  |
| &nbsp;&nbsp;&nbsp;ON No.1 Private Equity Fund |  | 5712  | (6020) | 308  | - | - | - |
| &nbsp;&nbsp;&nbsp;Digital New Deal Kappa Private Equity Fund |  | 4747  | (5534) | 787  | - | - | - |
| &nbsp;&nbsp;&nbsp;DS-Shinhan-JBWoori New Media New Technology Investment Fund No.1 |  | 9646  | (4304) | 1818  | - | - | 7160  |
| &nbsp;&nbsp;&nbsp;VOGO Debt Strategy General Private Real Estate Investment Trust No. 18 |  | 11324  | (1916) | 745  | - | - | 10153  |
| &nbsp;&nbsp;&nbsp;Koramco IPO REITS Mezzanine General Private Investment Trust No. 38  |  | 3278  | (87) | 342  | - | - | 3533  |
| &nbsp;&nbsp;&nbsp;TogetherKorea Private Investment Trust No. 6  |  | 5423  | - | 117  | - | - | 5540  |
| &nbsp;&nbsp;&nbsp;TogetherKorea Private Investment Trust No. 7  |  | 5423  | - | 117  | - | - | 5540  |
| &nbsp;&nbsp;&nbsp;Kiwoom Core Industrial Technology Investment Fund No.3 |  | 4219  | - | (44) | - | - | 4175  |
| &nbsp;&nbsp;&nbsp;Penture K-Content Investment Fund |  | 11319  | 8000  | (3239) | - | - | 16080  |
| &nbsp;&nbsp;&nbsp;2023 Shinhan-JB Woori-Daeshin Listed Companies New Technology Fund  |  | 13468  | (5790) | 3055  | - | - | 10733  |
| &nbsp;&nbsp;&nbsp;Hana Alternative Investment Kosmes PCBO General PEF No. 1 |  | 5125  | (528) | 686  | - | - | 5283  |
| &nbsp;&nbsp;&nbsp;Shinhan-Timefolio Bio Accelerator Fund |  | 11707  | (6060) | 11465  | - | - | 17112  |
| &nbsp;&nbsp;&nbsp;Shinhan M&A-ESG Fund |  | 6454  | 1946  | 653  | - | - | 9053  |
| &nbsp;&nbsp;&nbsp;Shinhan Mid and Small-Sized Office Value-Added MO REIT Co., Ltd. |  | 18804  | (472) | 1216  | - | - | 19548  |

---

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**16. <u>Investments in associates (continued)</u>**

(b) Changes in investments in associates for the years ended December 31, 2025 and 2024 are as follows

(continued):

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | &nbsp;&nbsp;&nbsp;&nbsp;**December 31, 2025** | &nbsp;&nbsp;&nbsp;&nbsp;**December 31, 2025** | &nbsp;&nbsp;&nbsp;&nbsp;**December 31, 2025** | &nbsp;&nbsp;&nbsp;&nbsp;**December 31, 2025** | &nbsp;&nbsp;&nbsp;&nbsp;**December 31, 2025** | &nbsp;&nbsp;&nbsp;&nbsp;**December 31, 2025** |
| **Investees** |  | **Beginning**<br>**balance** | <br>**Investment**<br>**and**<br>**dividend** | **Equity**<br>**method**<br>**income**<br>**(loss)** | **Change in**<br>**other comprehensive income** | &nbsp;&nbsp;&nbsp;&nbsp;**Impairment**<br>**loss** | &nbsp;&nbsp;&nbsp;&nbsp;**Ending**<br>**balance** |
| &nbsp;&nbsp;&nbsp;KDBC meta-enter New Technology investment fund | W | 6797  | (7000) | 203  | - | - | - |
| &nbsp;&nbsp;&nbsp;Shinhan Time Secondary Blind New Technology Investment Trust |  | 4637  | 2375  | 4126  | - | - | 11138  |
| &nbsp;&nbsp;&nbsp;Shinhan DS Secondary Investment Fund |  | 2439  | 7087  | 21652  | - | - | 31178  |
| &nbsp;&nbsp;&nbsp;Shinhan-openwater pre-IPO Investment Trust 1 |  | 5666  | (2450) | 3350  | - | - | 6566  |
| &nbsp;&nbsp;&nbsp;Shinhan-CJ TechInnovation Fund 1st |  | 4595  | - | (174) | - | - | 4421  |
| &nbsp;&nbsp;&nbsp;Shinhan-Eco Venture Fund 2nd |  | 3957  | (330) | (43) | - | - | 3584  |
| &nbsp;&nbsp;&nbsp;Heungkuk-Shinhan the1st Visionary Technology Investment Trust no. 1 |  | 6497  | 505  | 53  | - | - | 7055  |
| &nbsp;&nbsp;&nbsp;Hantoo Shinhan Lake K-beauty Technology Investment Trust |  | 10264  | (2938) | (252) | - | - | 7074  |
| &nbsp;&nbsp;&nbsp;Shinhan HB Wellness 1st Investment Trust |  | 5326  | - | 364  | - | - | 5690  |
| &nbsp;&nbsp;&nbsp;Korea real Asset Fund No.3 |  | 16552  | 1046  | 1082  | - | - | 18680  |
| &nbsp;&nbsp;&nbsp;Timefolio Tech Fund I |  | 2990  | - | 49  | - | - | 3039  |
| &nbsp;&nbsp;&nbsp;PineStreet Global Corporate FoF XIII-2 |  | 3743  | 3273  | 1126  | - | - | 8142  |
| &nbsp;&nbsp;&nbsp;IGIS Yongsan Office General Private Real Estate Investment Trust 518 |  | 17144  | (726) | (2412) | - | - | 14006  |
| &nbsp;&nbsp;&nbsp;SH K-REITs Infra Real Estate Investment Trust (FoFs) |  | 2813  | (176) | 545  | - | - | 3182  |
| &nbsp;&nbsp;&nbsp;Samsung-dunamu Innovative IT Technology Investment Trust No. 1 |  | 3750  | - | 255  | - | - | 4005  |
| &nbsp;&nbsp;&nbsp;Time Robotics New Technology Investment Trust |  | 3778  | (72) | (76) | - | - | 3630  |
| &nbsp;&nbsp;&nbsp;Ascent-welcome Technology Investment Trust No.2 |  | 8460  | (1659) | 302  | - | - | 7103  |
| &nbsp;&nbsp;&nbsp;Newmain I funds |  | 9364  | (9254) | (110) | - | - | - |
| &nbsp;&nbsp;&nbsp;Igis General PE Real Estate Investment Trust 517-1 |  | 54902  | 3000  | (2927) | - | - | 54975  |
| &nbsp;&nbsp;&nbsp;SH Ulmus M.P.E. Innovative Venture Fund 7 |  | 3032  | - | (99) | - | - | 2933  |
| &nbsp;&nbsp;&nbsp;Consus Osansegyo No.2 |  | 8009  | - | - | - | - | 8009  |
| &nbsp;&nbsp;&nbsp;Shinhan AIM Private Fund of Fund 9-B |  | 36741  | 5053  | 1802  | - | - | 43596  |
| &nbsp;&nbsp;&nbsp;Shinhan General Private Real Estate Investment Trust No.3 |  | 26706  | 660  | 2023  | - | - | 29389  |
| &nbsp;&nbsp;&nbsp;Paros Kosdaq Venture General Private Investment Trust No. 5  |  | 6590  | (3062) | 110  | - | - | 3638  |
| &nbsp;&nbsp;&nbsp;Shinhan-soo secondary Fund |  | 16737  | - | 705  | - | - | 17442  |
| &nbsp;&nbsp;&nbsp;TECHFIN RATINGS Co., Ltd. |  | 25610  | - | (2570) | - | - | 23040  |
| &nbsp;&nbsp;&nbsp;Songpa biz cluster PFV Co., Ltd. |  | 13364  | - | (437) | - | - | 12927  |
| &nbsp;&nbsp;&nbsp;Planeta PTE LTD |  | 11341  | - | 898  | - | - | 12239  |
| &nbsp;&nbsp;&nbsp;The E&Shinhan New Growth Up Fund |  | 3518  | 2580  | 1398  | - | - | 7496  |
| &nbsp;&nbsp;&nbsp;HHR Special Situation Real Estate Private Investment Trust No. 13 |  | 2749  | (224) | 691  | - | - | 3216  |

---

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**16. <u>Investments in associates (continued)</u>**

(b) Changes in investments in associates for the years ended December 31, 2025 and 2024 are as follows

(continued):

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | &nbsp;&nbsp;&nbsp;&nbsp;**December 31, 2025** | &nbsp;&nbsp;&nbsp;&nbsp;**December 31, 2025** | &nbsp;&nbsp;&nbsp;&nbsp;**December 31, 2025** | &nbsp;&nbsp;&nbsp;&nbsp;**December 31, 2025** | &nbsp;&nbsp;&nbsp;&nbsp;**December 31, 2025** | &nbsp;&nbsp;&nbsp;&nbsp;**December 31, 2025** |
| **Investees** |  | **Beginning**<br>**balance** | <br>**Investment**<br>**and**<br>**dividend** | **Equity**<br>**method**<br>**income**<br>**(loss)** | **Change in**<br>**other comprehensive income** | &nbsp;&nbsp;&nbsp;&nbsp;**Impairment**<br>**loss** | &nbsp;&nbsp;&nbsp;&nbsp;**Ending**<br>**balance** |
| &nbsp;&nbsp;&nbsp;Shinhan-GB FutureFlow Fund L.P. | W | 5150  | 2996  | (313) | 249  | - | 8082  |
| &nbsp;&nbsp;&nbsp;Credila Financial Services |  | 263116  | 3240  | 20059  | (20601) | - | 265814  |
| &nbsp;&nbsp;&nbsp;Shinhan-DS Mezzanine Fund 1 |  | 2869  | - | 774  | - | - | 3643  |
| &nbsp;&nbsp;&nbsp;Shinhan Time BM sobujang Fund |  | 1405  | 1750  | 216  | - | - | 3371  |
| &nbsp;&nbsp;&nbsp;Tigris Fund No. 58 |  | 1977  | (1420) | 3252  | - | - | 3809  |
| &nbsp;&nbsp;&nbsp;Shinhan Market-Frontier Fund Ⅲ |  | 12791  | 8804  | 881  | - | - | 22476  |
| &nbsp;&nbsp;&nbsp;DB IPO HighYield Fund 1 |  | 4278  | (4342) | 64  | - | - | - |
| &nbsp;&nbsp;&nbsp;Exponential SQUARE Private Investment Trust No.1 |  | 5208  | (5668) | 460  | - | - | - |
| &nbsp;&nbsp;&nbsp;Fine North America Credit Private Mixed Asset Investment Trust 22 |  | 4613  | 807  | 463  | - | - | 5883  |
| &nbsp;&nbsp;&nbsp;IGIS Private Real Estate Investment No.454 |  | 3368  | - | (6) | - | - | 3362  |
| &nbsp;&nbsp;&nbsp;IGIS Private Real Estate Investment No.462 |  | 4433  | - | (56) | - | - | 4377  |
| &nbsp;&nbsp;&nbsp;BNW Recharge Private Equity Fund |  | 7138  | - | (2656) | - | - | 4482  |
| &nbsp;&nbsp;&nbsp;United Partners Realasset Fund No.14 |  | 9998  | (65) | 135  | - | - | 10068  |
| &nbsp;&nbsp;&nbsp;Shinhan Securities HIFI Bond SafeR 2Y Private Fund No.12 |  | 17977  | (17977) | - | - | - | - |
| &nbsp;&nbsp;&nbsp;Shinhan Securities HIFI Bond SafeR 2Y Private Fund No.13 |  | 12035  | (12035) | - | - | - | - |
| &nbsp;&nbsp;&nbsp;Shinhan Securities HIFI Bond SafeR 2Y Private Fund No.14 |  | 13711  | - | 2685  | - | - | 16396  |
| &nbsp;&nbsp;&nbsp;Shinhan Securities HIFI Bond SafeR 2Y Private Fund No.15 |  | 13738  | - | 2116  | - | - | 15854  |
| &nbsp;&nbsp;&nbsp;Shinhan Securities HIFI Bond SafeR 2Y Private Fund No.16 |  | 13290  | - | 2687  | - | - | 15977  |
| &nbsp;&nbsp;&nbsp;Shinhan Securities HIFI Bond SafeR 2Y Private Fund No.17 |  | 5378  | - | 1847  | - | - | 7225  |
| &nbsp;&nbsp;&nbsp;Shinhan Securities HIFI Bond SafeR 2Y Private Fund No.18 |  | 10925  | - | 3948  | - | - | 14873  |
| &nbsp;&nbsp;&nbsp;Shinhan Securities HIFI Bond SafeR 2Y Private Fund No.19 |  | 5052  | - | 2515  | - | - | 7567  |
| &nbsp;&nbsp;&nbsp;SH US Buyback&High Dividend Security Feeder Investment Trust(H)[Equity] |  | 4197  | (326) | 517  | - | - | 4388  |

---

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**16. <u>Investments in associates (continued)</u>**

(b) Changes in investments in associates for the years ended December 31, 2025 and 2024 are as follows

(continued):

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | &nbsp;&nbsp;&nbsp;&nbsp;**December 31, 2025** | &nbsp;&nbsp;&nbsp;&nbsp;**December 31, 2025** | &nbsp;&nbsp;&nbsp;&nbsp;**December 31, 2025** | &nbsp;&nbsp;&nbsp;&nbsp;**December 31, 2025** | &nbsp;&nbsp;&nbsp;&nbsp;**December 31, 2025** | &nbsp;&nbsp;&nbsp;&nbsp;**December 31, 2025** |
| **Investees** |  | **Beginning**<br>**balance** | <br>**Investment**<br>**and**<br>**dividend** | **Equity**<br>**method**<br>**income**<br>**(loss)** | **Change in**<br>**other comprehensive income** | &nbsp;&nbsp;&nbsp;&nbsp;**Impairment**<br>**loss** | &nbsp;&nbsp;&nbsp;&nbsp;**Ending**<br>**balance** |
| &nbsp;&nbsp;&nbsp;SH Prestige High Dividend Security Feeder No.1[Equity] | W  | 2579  | 1962  | 2229  | - | - | 6770  |
| &nbsp;&nbsp;&nbsp;IGIS Real Estate General Private Feeder Investment Company No.562 |  | - | 23000  | (1782) | - | - | 21218  |
| &nbsp;&nbsp;&nbsp;Shinhan Securities HIFI Bond SafeR 2Y Private Fund No.21 |  | - | 15700  | (1011) | - | - | 14689  |
| &nbsp;&nbsp;&nbsp;Shinhan Securities HIFI Bond SafeR 2Y Private Fund No.22 |  | - | 15700  | (261) | - | - | 15439  |
| &nbsp;&nbsp;&nbsp;Shinhan Securities HIFI Bond SafeR 2Y Private Fund No.23 |  | - | 15700  | (1146) | - | - | 14554  |
| &nbsp;&nbsp;&nbsp;Finflow  |  | - | 7058  | (20) | - | - | 7038  |
| &nbsp;&nbsp;&nbsp;Fireant Media and Digital Service Joint Stock Company  |  | - | 4925  | (204) | - | - | 4721  |
| &nbsp;&nbsp;&nbsp;ST EIP Holdings Inc. |  | - | 51873  | 1265  | - | - | 53138  |
| &nbsp;&nbsp;&nbsp;AMP Capital Global Infrastructure Fund II B L |  | - | 24243  | (1171) | - | - | 23072  |
| &nbsp;&nbsp;&nbsp;Post CR REITS No.1  |  | - | 3500  | - | - | - | 3500  |
| &nbsp;&nbsp;&nbsp;SH US Long Term Treasury Plus Security Feeder Investment Trust(H)[Bond-FoFs] |  | - | 4781  | (48) | - | - | 4733  |
| &nbsp;&nbsp;&nbsp;Others |  | 187092  | (74374) | 47885  | - | (1) | 160602  |
|  | W | 2752980  | (262556) | 221225  | (22962) | (49485) | 2639202  |

---

(\*) Due to cumulative unrealized losses incurred since initial acquisition, this item was recognized as an impairment loss.

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**16. <u>Investments in associates (continued)</u>**

(b) Changes in investments in associates for the years ended December 31, 2025 and 2024 are as follows

(continued):

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | &nbsp;&nbsp;&nbsp;&nbsp;**December 31, 2024** | &nbsp;&nbsp;&nbsp;&nbsp;**December 31, 2024** | &nbsp;&nbsp;&nbsp;&nbsp;**December 31, 2024** | &nbsp;&nbsp;&nbsp;&nbsp;**December 31, 2024** | &nbsp;&nbsp;&nbsp;&nbsp;**December 31, 2024** | &nbsp;&nbsp;&nbsp;&nbsp;**December 31, 2024** |
| **Investees** |  | **Beginning**<br>**balance** | <br>**Investment**<br>**and**<br>**dividend** | **Equity**<br>**method**<br>**income**<br>**(loss)** | **Change in**<br>**other comprehensive income** | &nbsp;&nbsp;&nbsp;&nbsp;**Impairment**<br>**loss** | &nbsp;&nbsp;&nbsp;&nbsp;**Ending**<br>**balance** |
| &nbsp;&nbsp;&nbsp;BNP Paribas Cardif Life Insurance | W | 39272 | - | (3423) | 587  | - | 36436  |
| &nbsp;&nbsp;&nbsp;Shinhan-Neoplux Energy Newbiz Fund |  | 22358 | (9196) | 1450  | - | - | 14612  |
| &nbsp;&nbsp;&nbsp;Shinhan-Albatross tech investment Fund |  | 15499 | (8312) | 1485  | - | - | 8672  |
| &nbsp;&nbsp;&nbsp;KCGI-SingA330-A Private Special Asset Investment Trust |  | 4609 | (4876) | 267  | - | - | - |
| &nbsp;&nbsp;&nbsp;VOGO Debt Strategy Qualified IV Private |  | 6532 | (3465) | 646  | - | - | 3713  |
| &nbsp;&nbsp;&nbsp;Shinhan-Midas Donga Secondary Fund |  | 4301 | (750) | (399) | - | - | 3152  |
| &nbsp;&nbsp;&nbsp;ShinHan – Soo Young Entrepreneur Investment Fund No.1 |  | 4862 | (5760) | 4279  | - | - | 3381  |
| &nbsp;&nbsp;&nbsp;Shinhan Praxis K-Growth Global Private Equity Fund |  | 3692 | - | (2) | - | - | 3690  |
| &nbsp;&nbsp;Kiwoom Milestone Professional Private Real Estate Trust 19 (\*) |  | - | - | - | - | - | - |
| &nbsp;&nbsp;&nbsp;Shinhan Global Healthcare Fund 1 (\*) |  | - | - | - | - | - | - |
| &nbsp;&nbsp;&nbsp;KB NA Hickory Private Special Asset Fund |  | 24096 | (7321) | 718  | - | - | 17493  |
| &nbsp;&nbsp;&nbsp;Koramco Europe Core Private Placement Real Estate Fund No.2-2 |  | 18799 | 1058  | 370  | - | (13412) | 6815  |
| &nbsp;&nbsp;&nbsp;KDBC-Midas Dong-A Global contents Fund |  | 4288 | - | (1648) | - | - | 2640  |
| &nbsp;&nbsp;&nbsp;Shinhan-Nvestor Liquidity Solution Fund |  | 6088 | (1270) | 308  | - | - | 5126  |
| &nbsp;&nbsp;&nbsp;Shinhan AIM FoF Fund 1-A |  | 9635 | (1169) | 1338  | - | - | 9804  |
| &nbsp;&nbsp;&nbsp;IGIS Global Credit Fund 150-1 |  | 4286 | (549) | 1252  | - | - | 4989  |
| &nbsp;&nbsp;&nbsp;Korea Omega Project Fund III |  | 3696 | (2274) | (1422) | - | - | - |
| &nbsp;&nbsp;&nbsp;Genesis North America Power Company No.1 PEF |  | 6358 | (3143) | 3587  | - | - | 6802  |
| &nbsp;&nbsp;&nbsp;SH MAIN Professional Investment Type Private Mixed Asset Investment Trust No.3 |  | 40764 | (37990) | 6628  | - | - | 9402  |
| &nbsp;&nbsp;&nbsp;Korea Finance Security Co., Ltd. |  | 3245 | - | 297  | - | - | 3542  |
| &nbsp;&nbsp;&nbsp;MIEL Co., Ltd. (\*) |  | - | - | - | - | - | - |
| &nbsp;&nbsp;&nbsp;AIP Transportation Specialized Privately Placed Fund Trust #1 |  | 46372 | 3460  | 8975  | - | - | 58807  |
| &nbsp;&nbsp;&nbsp;Kiwoom-Shinhan Innovation Fund I |  | 7854 | - | 125  | - | - | 7979  |
| &nbsp;&nbsp;Midas Asset Global CRE Debt Private Fund No.6  |  | 54881 | (57919) | 3038  | - | - | - |
| &nbsp;&nbsp;&nbsp;Samchully Midstream Private Placement Special Asset Fund 5-4 |  | 33163 | 2416  | 3905  | - | - | 39484  |
| &nbsp;&nbsp;&nbsp;SH Senior Loan Professional Investment Type Private Mixed Asset Investment Trust No.3 |  | 7254 | (7664) | 410  | - | - | - |
| &nbsp;&nbsp;&nbsp;MK Ventures-K Clavis Growth Capital Venture Fund 1 (\*) |  | - | (183) | 3  | - | 183  | 3  |
| &nbsp;&nbsp;&nbsp;NH-Amundi Global Infrastructure Trust 14 |  | 18728 | (20589) | 1861  | - | - | - |
| &nbsp;&nbsp;&nbsp;Vestas Qualified Investors Private Real Estate Fund Investment Trust No.37 |  | 35265 | (1591) | 1739  | - | - | 35413  |
| &nbsp;&nbsp;&nbsp;Milestone Private Real Estate Fund 3  |  | 17615 | 1619  | (114) | - | - | 19120  |
| &nbsp;&nbsp;&nbsp;Nomura-Rifa Private Real Estate Investment Trust 31  |  | 6889 | - | (546) | - | - | 6343  |
| &nbsp;&nbsp;&nbsp;SH Senior Loan Professional Investment Type Private Mixed Asset Investment Trust No.2  |  | 3138 | (889) | 269  | - | - | 2518  |

---

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**16. <u>Investments in associates (continued)</u>**

(b) Changes in investments in associates for the years ended December 31, 2025 and 2024 are as follows

(continued):

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | &nbsp;&nbsp;&nbsp;&nbsp;**December 31, 2024** | &nbsp;&nbsp;&nbsp;&nbsp;**December 31, 2024** | &nbsp;&nbsp;&nbsp;&nbsp;**December 31, 2024** | &nbsp;&nbsp;&nbsp;&nbsp;**December 31, 2024** | &nbsp;&nbsp;&nbsp;&nbsp;**December 31, 2024** | &nbsp;&nbsp;&nbsp;&nbsp;**December 31, 2024** |
| **Investees** |  | **Beginning**<br>**balance** | <br>**Investment**<br>**and**<br>**dividend** | **Equity**<br>**method**<br>**income**<br>**(loss)** | **Change in**<br>**other comprehensive income** | &nbsp;&nbsp;&nbsp;&nbsp;**Impairment**<br>**loss** | &nbsp;&nbsp;&nbsp;&nbsp;**Ending**<br>**balance** |
| &nbsp;&nbsp;&nbsp;FuturePlay-Shinhan TechInnovation Fund 1 | W | 7847  | (1238) | (824) | - | - | 5785  |
| &nbsp;&nbsp;&nbsp;Stonebridge Corporate 1st Fund |  | 4142  | - | (165) | - | - | 3977  |
| &nbsp;&nbsp;&nbsp;Vogo Realty Partners Private Real Estate Fund V |  | 10792  | 1379  | (1509) | - | - | 10662  |
| &nbsp;&nbsp;&nbsp;Korea Credit Bureau  |  | 6738  | (45) | 881  | - | - | 7574  |
| &nbsp;&nbsp;&nbsp;Goduck Gangil1 PFV Co., Ltd. |  | 180  | (148) | 64  | - | - | 96  |
| &nbsp;&nbsp;&nbsp;SBC PFV Co., Ltd. |  | 30774  | 8750  | (1908) | - | - | 37616  |
| &nbsp;&nbsp;&nbsp;NH-amundi global infra private fund 16 |  | 50652  | 4293  | (21977) | - | - | 32968  |
| &nbsp;&nbsp;&nbsp;SH BNCT Professional Investment Type Private Special Asset Investment Trust |  | 244772  | (31676) | 12612  | - | - | 225708  |
| &nbsp;&nbsp;&nbsp;Deutsche Global Professional Investment Type Private Real Estate Investment Trust No. 24  |  | 18110  | (19646) | 1536  | - | - | - |
| &nbsp;&nbsp;&nbsp;Sparklabs-Shinhan Opportunity Fund 1 |  | 3914  | - | (1189) | - | - | 2725  |
| &nbsp;&nbsp;&nbsp;IGIS Real-estate Private Investment Trust No.33 |  | 15271  | (809) | 1170  | - | - | 15632  |
| &nbsp;&nbsp;&nbsp;Goduck Gangil10 PFV Co., Ltd. |  | 5081  | (212) | 1296  | - | - | 6165  |
| &nbsp;&nbsp;&nbsp;Fidelis Global Private Real Estate Trust No.2 |  | 551  | - | - | - | - | 551  |
| &nbsp;&nbsp;&nbsp;AIP EURO PRIVATE REAL ESTATE TRUST No. 12 |  | 48619  | 2955  | 2919  | - | (29849) | 24644  |
| &nbsp;&nbsp;&nbsp;Shinhan Global Healthcare Fund 2 (\*) |  | - | - | - | - | - | - |
| &nbsp;&nbsp;&nbsp;Shinhan AIM Real Estate Fund No.2 |  | 26678  | 1760  | (26884) | - | - | 1554  |
| &nbsp;&nbsp;&nbsp;Shinhan AIM Real Estate Fund No.1 |  | 51873  | 2613  | (51602) | - | - | 2884  |
| &nbsp;&nbsp;&nbsp;SH Daegu Green Power Cogeneration System Professional Investment Type Private Special Asset Investment Trust  |  | 34781  | (856) | 5566  | - | - | 39491  |
| &nbsp;&nbsp;&nbsp;SH Sangju YC Expressway Professional Investment Type Private Special Asset Investment Trust |  | 20053  | - | 1894  | - | - | 21947  |
| &nbsp;&nbsp;&nbsp;SH Global Infrastructure Professional Investment Type Private Special Asset Investment Trust No.7-2  |  | 17516  | (3377) | 1631  | - | - | 15770  |
| &nbsp;&nbsp;&nbsp;Korea Omega-Shinhan Project Fund I |  | 11630  | (1957) | 9800  | - | - | 19473  |
| &nbsp;&nbsp;&nbsp;Samsung SRA Real Estate Professional Private 45 |  | 31432  | (3954) | 2798  | - | - | 30276  |
| &nbsp;&nbsp;&nbsp;IBK Global New Renewable Energy Special Asset Professional Private2 |  | 32296  | (1266) | 2068  | - | - | 33098  |
| &nbsp;&nbsp;&nbsp;VS Cornerstone Fund |  | 3280  | - | (55) | - | - | 3225  |
| &nbsp;&nbsp;&nbsp;NH-Amundi US Infrastructure Private Fund2 |  | 29725  | (30845) | 1664  | - | - | 544  |
| &nbsp;&nbsp;&nbsp;Kakao-Shinhan 1st TNYT Fund |  | 19866  | - | 3812  | - | - | 23678  |
| &nbsp;&nbsp;&nbsp;Pacific Private Placement Real Estate Fund No.40 |  | 11624  | (748) | 747  | - | - | 11623  |
| &nbsp;&nbsp;&nbsp;Mastern Private Real Estate Loan Fund No.2 |  | 3040  | (1908) | 198  | - | - | 1330  |
| &nbsp;&nbsp;&nbsp;LB Scotland Amazon Fulfillment Center Fund 29  |  | 30928  | 3780  | (15860) | - | - | 18848  |
| &nbsp;&nbsp;&nbsp;JR AMC Hungary Budapest Office Fund 16 |  | 12687  | 221  | 279  | - | - | 13187  |
| &nbsp;&nbsp;&nbsp;EDNCENTRAL Co., Ltd. (\*) |  | - | - | - | - | - | - |
| &nbsp;&nbsp;&nbsp;Gyeonggi-Neoplux Superman Fund |  | 5056  | - | (918) | - | - | 4138  |
| &nbsp;&nbsp;&nbsp;NewWave 6th Fund |  | 13716  | (1425) | (1583) | - | - | 10708  |
| &nbsp;&nbsp;&nbsp;Neoplux No.3 Private Equity Fund |  | 18981  | (404) | (6425) | - | - | 12152  |
| &nbsp;&nbsp;&nbsp;PCC Amberstone Private Equity Fund I |  | 17258  | (5513) | 2795  | - | - | 14540  |
| &nbsp;&nbsp;&nbsp;KIAMCO POWERLOAN TRUST 4TH |  | 45099  | (2331) | 5935 | - | - | 48703  |

---

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**16. <u>Investments in associates (continued)</u>**

(b) Changes in investments in associates for the years ended December 31, 2025 and 2024 are as follows

(continued):

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | &nbsp;&nbsp;&nbsp;&nbsp;**December 31, 2024** | &nbsp;&nbsp;&nbsp;&nbsp;**December 31, 2024** | &nbsp;&nbsp;&nbsp;&nbsp;**December 31, 2024** | &nbsp;&nbsp;&nbsp;&nbsp;**December 31, 2024** | &nbsp;&nbsp;&nbsp;&nbsp;**December 31, 2024** | &nbsp;&nbsp;&nbsp;&nbsp;**December 31, 2024** |
| **Investees** |  | **Beginning**<br>**balance** | <br>**Investment**<br>**and**<br>**dividend** | **Equity**<br>**method**<br>**income**<br>**(loss)** | **Change in**<br>**other comprehensive income** | &nbsp;&nbsp;&nbsp;&nbsp;**Impairment**<br>**loss** | &nbsp;&nbsp;&nbsp;&nbsp;**Ending**<br>**balance** |
| &nbsp;&nbsp;&nbsp;Mastern Opportunity Seeking Real Estate Fund II | W | 13135  | (4868) | (2995) | - | - | 5272  |
| &nbsp;&nbsp;&nbsp;Neoplux Market-Frontier Secondary Fund  |  | 10427  | (4006) | 1754  | - | - | 8175  |
| &nbsp;&nbsp;&nbsp;Synergy Green New Deal 1st New Technology Business Investment Fund |  | 10315  | (72) | 614  | - | - | 10857  |
| &nbsp;&nbsp;&nbsp;KIAMCO Vietnam Solar Special Asset Private Investment Trust |  | 6836  | (580) | 847  | - | - | 7103  |
| &nbsp;&nbsp;&nbsp;SHINHAN-NEO Core Industrial Technology Fund |  | 13616  | (9247) | 3742  | - | - | 8111  |
| &nbsp;&nbsp;&nbsp;SHBNPP Green New Deal Energy Professional Investment Type Private Special Asset Investment Trust No.2 |  | 23356  | (2538) | 892  | - | - | 21710  |
| &nbsp;&nbsp;&nbsp;Eum Private Equity Fund No.7 |  | 9166  | (400) | 390  | - | - | 9156  |
| &nbsp;&nbsp;&nbsp;Kiwoom Hero No.4 Private Equity Fund |  | 3442  | (96) | 851  | - | - | 4197  |
| &nbsp;&nbsp;&nbsp;Vogo Canister Professional Trust Private Fund I |  | 45871  | (47321) | 1450  | - | - | - |
| &nbsp;&nbsp;&nbsp;AJ-KOSNET Semicon One Venture Fund |  | 2854  | - | 358  | - | - | 3212  |
| &nbsp;&nbsp;&nbsp;Timefolio The Venture-V second |  | 5801  | (4444) | 8  | - | - | 1365  |
| &nbsp;&nbsp;&nbsp;Shinhan Smilegate Global PEF I |  | 3801  | (4326) | 4407  | - | - | 3882  |
| &nbsp;&nbsp;&nbsp;Genesis Eco No.1 PEF |  | 11219  | - | (142) | - | - | 11077  |
| &nbsp;&nbsp;&nbsp;SHINHAN-NEO Market-Frontier 2nd Fund |  | 32670  | (5466) | 295  | - | - | 27499  |
| &nbsp;&nbsp;&nbsp;NH-Synergy Core Industrial New Technology Fund |  | 6439  | (6175) | (264) | - | - | - |
| &nbsp;&nbsp;&nbsp;J& Moorim Jade Investment Fund |  | 4920  | - | 433  | - | - | 5353  |
| &nbsp;&nbsp;&nbsp;Ulmus SHC innovation investment fund |  | 5543  | (1150) | (88) | - | - | 4305  |
| &nbsp;&nbsp;&nbsp;T Core Industrial Technology 1st Venture PEF |  | 4254  | (378) | (881) | - | - | 2995  |
| &nbsp;&nbsp;&nbsp;Fine Value POST IPO No.5 Private Equity Fund  |  | 3766  | (3565) | (201) | - | - | - |
| &nbsp;&nbsp;&nbsp;TI First Property Private Investment Trust 1 |  | 3102  | (203) | 203  | - | - | 3102  |
| &nbsp;&nbsp;&nbsp;IBKC Global Contents Investment Fund  |  | 4701  | (4764) | 63  | - | - | - |
| &nbsp;&nbsp;&nbsp;Kiwoom-Shinhan Innovation Fund 2 |  | 9165  | 1148  | (86) | - | - | 10227  |
| &nbsp;&nbsp;&nbsp;ETRI Holdings-Shinhan 1st Unicorn Fund |  | 3295  | 1500  | (99) | - | - | 4696  |
| &nbsp;&nbsp;&nbsp;SJ ESG Innovative Growth Fund |  | 4198  | - | (1083) | - | - | 3115  |
| &nbsp;&nbsp;&nbsp;AVES 1st Corporate Recovery Private Equity Fund |  | 4768  | - | (245) | - | - | 4523  |
| &nbsp;&nbsp;&nbsp;Reverent-Shinhan Vista Fund  |  | 2600  | 54  | 755  | - | - | 3409  |
| &nbsp;&nbsp;&nbsp;JS Shinhan Private Equity Fund  |  | 4933  | - | 1448  | - | - | 6381  |
| &nbsp;&nbsp;&nbsp;Daishin Newgen New Technology Investment Fund 1<sup>st</sup>  |  | 6082  | (5742) | (340) | - | - | - |
| &nbsp;&nbsp;&nbsp;Meta TB ESG Private Equity Fund I |  | 5771  | - | (88) | - | - | 5683  |
| &nbsp;&nbsp;&nbsp;Shinhan VC tomorrow venture fund 1 |  | 45210  | 25608  | (185) | - | - | 70633  |
| &nbsp;&nbsp;&nbsp;H-IOTA Fund |  | 9524  | (2639) | 2492  | - | - | 9377  |
| &nbsp;&nbsp;&nbsp;Stonebridge-Shinhan Unicorn Secondary Fund  |  | 7427  | 6160  | - | - | - | 13587  |
| &nbsp;&nbsp;&nbsp;Tres-Yujin Trust  |  | 10359  | - | 2672  | - | - | 13031  |
| &nbsp;&nbsp;&nbsp;Shinhan-Time mezzanine blind Fund |  | 14121  | - | 2305  | - | - | 16426  |
| &nbsp;&nbsp;&nbsp;Capstone REITs No.26 |  | 5750  | - | (381) | - | - | 5369  |
| &nbsp;&nbsp;&nbsp;JB Incheon-Bucheon REITS No.54 |  | 4978  | - | (11) | - | - | 4967  |
| &nbsp;&nbsp;&nbsp;Hankook Smart Real Asset Investment Trust No.3 |  | 7668  | - | (1662) | - | - | 6006  |
| &nbsp;&nbsp;&nbsp;JB Hwaseong-Hadong REITs No.53 |  | 4983  | - | (9) | - | - | 4974  |
| &nbsp;&nbsp;&nbsp;KB Oaktree Trust No.3 |  | 8668  | 304  | 916  | - | - | 9888  |

---

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**16. <u>Investments in associates (continued)</u>**

(b) Changes in investments in associates for the years ended December 31, 2025 and 2024 are as follows

(continued):

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | &nbsp;&nbsp;&nbsp;&nbsp;**December 31, 2024** | &nbsp;&nbsp;&nbsp;&nbsp;**December 31, 2024** | &nbsp;&nbsp;&nbsp;&nbsp;**December 31, 2024** | &nbsp;&nbsp;&nbsp;&nbsp;**December 31, 2024** | &nbsp;&nbsp;&nbsp;&nbsp;**December 31, 2024** | &nbsp;&nbsp;&nbsp;&nbsp;**December 31, 2024** |
| **Investees** |  | **Beginning**<br>**balance** | <br>**Investment**<br>**and**<br>**dividend** | **Equity**<br>**method**<br>**income**<br>**(loss)** | **Change in**<br>**other comprehensive income** | &nbsp;&nbsp;&nbsp;&nbsp;**Impairment**<br>**loss** | &nbsp;&nbsp;&nbsp;&nbsp;**Ending**<br>**balance** |
| &nbsp;&nbsp;&nbsp;Daehan No.36 Office Asset Management Company | W | 22482  | (25394) | 2912  | - | - | - |
| &nbsp;&nbsp;&nbsp;Rhinos Premier Mezzanine Private Investment Fund No.1  |  | 3056  | (3048) | (8) | - | - | - |
| &nbsp;&nbsp;&nbsp;SH Real Estate Loan Investment Type Private Real Estate Investment Trust No.2 |  | 62769  | (12710) | 2738  | - | - | 52797  |
| &nbsp;&nbsp;&nbsp;Shinhan JigaeNamsan Road Private Special Asset Investment Trust |  | 41434  | (1142) | (647) | - | - | 39645  |
| &nbsp;&nbsp;&nbsp;SKS-Yozma Fund No.1 |  | 3455  | (2931) | (524) | - | - | - |
| &nbsp;&nbsp;&nbsp;KB Distribution Private Real Estate 3-1 |  | 25976  | - | (1897) | - | - | 24079  |
| &nbsp;&nbsp;&nbsp;Pacific Private Investment Trust No.49-1  |  | 27377  | - | 623  | - | - | 28000  |
| &nbsp;&nbsp;&nbsp;KIWOOM Real estate private placement fund for normal investors No. 31  |  | 8558  | (435) | (91) | - | - | 8032  |
| &nbsp;&nbsp;&nbsp;RIFA Real estate private placement fund for normal investors No. 51  |  | 5731  | (294) | (66) | - | - | 5371  |
| &nbsp;&nbsp;&nbsp;Fivetree general private equity fund No.15 |  | 12572  | (12572) | - | - | - | - |
| &nbsp;&nbsp;&nbsp;Shinhan-Kunicorn first Fund |  | 9626  | - | (202) | - | - | 9424  |
| &nbsp;&nbsp;&nbsp;Shinhan-Quantum Startup Fund |  | 3986  | 1800  | (121) | - | - | 5665  |
| &nbsp;&nbsp;&nbsp;Shinhan Simone Fund Ⅰ |  | 4837  | (991) | (424) | - | - | 3422  |
| &nbsp;&nbsp;&nbsp;Korea Investment develop seed Trust No.1 |  | 9532  | (939) | 1552  | - | - | 10145  |
| &nbsp;&nbsp;&nbsp;Tiger Green alpha Trust No.29  |  | 28573  | (664) | 2083  | - | - | 29992  |
| &nbsp;&nbsp;&nbsp;STIC ALT Global II Private Equity Fund |  | 9504  | (217) | 554  | - | - | 9841  |
| &nbsp;&nbsp;&nbsp;NH-Brain EV Fund |  | 11125  | (12999) | 1874  | - | - | - |
| &nbsp;&nbsp;&nbsp;DDI LVC Master Real Estate Investment Trust Co., Ltd.  |  | 6583  | - | (783) | - | - | 5800  |
| &nbsp;&nbsp;&nbsp;Reverent Frontier Private Equity Fund IV Specializing in Start-up Venture Business |  | 3294  | - | (1220) | - | - | 2074  |
| &nbsp;&nbsp;&nbsp;Find-Green New Deal 2nd Equity Fund |  | 4465  | - | (141) | - | - | 4324  |
| &nbsp;&nbsp;&nbsp;ShinhanFitrin 1st Technology Business Investment Association  |  | 4519  | - | (287) | - | - | 4232  |
| &nbsp;&nbsp;&nbsp;Koramco Private Real Estate Fund 143 |  | 6667  | - | 2  | - | - | 6669  |
| &nbsp;&nbsp;&nbsp;Korea Investment Top Mezzanine Private Real Estate Trust No.1 |  | 10016  | (994) | 854  | - | - | 9876  |
| &nbsp;&nbsp;&nbsp;LB YoungNam Logistics Private Trust No.40 |  | 9782  | (600) | 443  | - | - | 9625  |
| &nbsp;&nbsp;&nbsp;Shinhan-Cognitive Start-up Fund L.P. |  | 5329  | - | (1120) | - | - | 4209  |
| &nbsp;&nbsp;&nbsp;Cornerstone J&M Fund I |  | 3488  | - | (74) | - | - | 3414  |
| &nbsp;&nbsp;&nbsp;Logisvalley Shinhan REIT Co., Ltd.  |  | 3598  | - | (209) | - | - | 3389  |
| &nbsp;&nbsp;&nbsp;DA Value-Honest New Technology Investment Fund 1  |  | 4099  | (2754) | (1345) | - | - | - |
| &nbsp;&nbsp;&nbsp;Shinhan-G.N.Tech Smart Innovation Fund |  | 9977  | 2535  | 492  | - | - | 13004  |
| &nbsp;&nbsp;&nbsp;Shinhan-Gene and New Normal First Mover Venture Investment Equity Fund 1st |  | 6968  | - | (210) | - | - | 6758  |
| &nbsp;&nbsp;&nbsp;Korea Investment Green Newdeal Infra Trust No.1 |  | 10257  | 5962  | (123) | - | - | 16096  |
| &nbsp;&nbsp;&nbsp;BTS 2nd Private Equity Fund |  | 6342  | 3796  | 21  | - | - | 10159  |
| &nbsp;&nbsp;&nbsp;NH-J&-IBKC Label Technology Fund |  | 9747  | - | (101) | - | - | 9646  |
| &nbsp;&nbsp;&nbsp;Hanyang Time Mezzanine Fund |  | 3012  | (300) | (201) | - | - | 2511  |
| &nbsp;&nbsp;&nbsp;Shinhan-Sneak Peek Bio&Healthcare Bounce Back Fund |  | 2261  | 1250  | 405  | - | - | 3916  |
| &nbsp;&nbsp;&nbsp;Shinhan-isquare Venture PEF 1 |  | 4286  | 100  | (149) | - | - | 4237  |

---

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**16. <u>Investments in associates (continued)</u>**

(b) Changes in investments in associates for the years ended December 31, 2025 and 2024 are as follows

(continued):

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | &nbsp;&nbsp;&nbsp;&nbsp;**December 31, 2024** | &nbsp;&nbsp;&nbsp;&nbsp;**December 31, 2024** | &nbsp;&nbsp;&nbsp;&nbsp;**December 31, 2024** | &nbsp;&nbsp;&nbsp;&nbsp;**December 31, 2024** | &nbsp;&nbsp;&nbsp;&nbsp;**December 31, 2024** | &nbsp;&nbsp;&nbsp;&nbsp;**December 31, 2024** |
| **Investees** |  | **Beginning**<br>**balance** | <br>**Investment**<br>**and**<br>**dividend** | **Equity**<br>**method**<br>**income**<br>**(loss)** | **Change in**<br>**other comprehensive income** | &nbsp;&nbsp;&nbsp;&nbsp;**Impairment**<br>**loss** | &nbsp;&nbsp;&nbsp;&nbsp;**Ending**<br>**balance** |
| &nbsp;&nbsp;&nbsp;Aurum Goldrush ESG Private Fund No. 1 | W | 2917  | - | 90  | - | - | 3007  |
| &nbsp;&nbsp;&nbsp;Capstone Develop Frontier Trust |  | 7547  | (549) | 1051  | - | - | 8049  |
| &nbsp;&nbsp;&nbsp;Nextrade Co., Ltd. |  | 9700  | - | - | - | - | 9700  |
| &nbsp;&nbsp;&nbsp;SH 1.5years Maturity Investment Type Security Investment Trust No.2 |  | 4835  | (4835) | - | - | - | - |
| &nbsp;&nbsp;&nbsp;Eventus-IBKC LIB Fund |  | 6632  | (7064) | 432  | - | - | - |
| &nbsp;&nbsp;&nbsp;IBKC-Behigh Fund 1st |  | 3219  | - | (59) | - | - | 3160  |
| &nbsp;&nbsp;&nbsp;ON No.1 Private Equity Fund |  | 5321  | - | 391  | - | - | 5712  |
| &nbsp;&nbsp;&nbsp;Digital New Deal Kappa Private Equity Fund |  | 4845  | - | (98) | - | - | 4747  |
| &nbsp;&nbsp;&nbsp;IBKCJS New Technology Fund No.1 |  | 6130  | (2418) | (1094) | - | - | 2618  |
| &nbsp;&nbsp;&nbsp;DS-Shinhan-JBWoori New Media New Technology Investment Fund No.1 |  | 9803  | - | (157) | - | - | 9646  |
| &nbsp;&nbsp;&nbsp;VOGO Debt Strategy General Private Real Estate Investment Trust No. 18 |  | 12013  | (2170) | 1481  | - | - | 11324  |
| &nbsp;&nbsp;&nbsp;Koramco IPO REITS Mezzanine General Private Investment Trust No. 38  |  | 3171  | (61) | 168  | - | - | 3278  |
| &nbsp;&nbsp;&nbsp;TogetherKorea Private Investment Trust No. 6  |  | 5270  | - | 153  | - | - | 5423  |
| &nbsp;&nbsp;&nbsp;TogetherKorea Private Investment Trust No. 7  |  | 5270  | - | 153  | - | - | 5423  |
| &nbsp;&nbsp;&nbsp;Kiwoom Core Industrial Technology Investment Fund No.3 |  | 4180  | - | 39  | - | - | 4219  |
| &nbsp;&nbsp;&nbsp;Penture K-Content Investment Fund |  | 5622  | 6000  | (303) | - | - | 11319  |
| &nbsp;&nbsp;&nbsp;2023 Shinhan-JB Woori-Daeshin Listed Companies New Technology Fund  |  | 7969  | 6413  | (914) | - | - | 13468  |
| &nbsp;&nbsp;&nbsp;Hana Alternative Investment Kosmes PCBO General PEF No. 1 |  | 5107  | (526) | 544  | - | - | 5125  |
| &nbsp;&nbsp;&nbsp;Shinhan-Timefolio Bio Accelerator Fund |  | 5927  | 6000  | (220) | - | - | 11707  |
| &nbsp;&nbsp;&nbsp;Shinhan M&A-ESG Fund |  | 4169  | 2576  | (291) | - | - | 6454  |
| &nbsp;&nbsp;&nbsp;Shinhan Mid and Small-Sized Office Value-Added MO REIT Co., Ltd. |  | 10574  | 6609  | 1621  | - | - | 18804  |
| &nbsp;&nbsp;&nbsp;KDBC meta-enter New Technology investment fund |  | 6940  | - | (143) | - | - | 6797  |
| &nbsp;&nbsp;&nbsp;Shinhan Time Secondary Blind New Technology Investment Trust |  | 4754  | - | (117) | - | - | 4637  |
| &nbsp;&nbsp;&nbsp;Shinhan DS Secondary Investment Fund |  | 7477  | (1408) | (3630) | - | - | 2439  |
| Shinhan-openwater pre-IPO Investment Trust 1 |  | 4973  | - | 693  | - | - | 5666  |
| &nbsp;&nbsp;&nbsp;Shinhan-CJ TechInnovation Fund 1st |  | 2364  | 2400  | (169) | - | - | 4595  |
| &nbsp;&nbsp;&nbsp;Shinhan-Eco Venture Fund 2nd |  | 3610  | 450  | (103) | - | - | 3957  |
| &nbsp;&nbsp;&nbsp;Heungkuk-Shinhan the1st Visionary Technology Investment Trust no. 1 |  | 3154  | 3200  | 143  | - | - | 6497  |
| &nbsp;&nbsp;&nbsp;Hantoo Shinhan Lake K-beauty Technology Investment Trust |  | 9969  | - | 295  | - | - | 10264  |
| &nbsp;&nbsp;&nbsp;Shinhan HB Wellness 1st Investment Trust |  | 4992  | - | 334  | - | - | 5326  |
| &nbsp;&nbsp;&nbsp;Korea real Asset Fund No.3 |  | 9315  | 7865  | (628) | - | - | 16552  |
| &nbsp;&nbsp;&nbsp;PineStreet Global Corporate FoF XIII-2 |  | 721  | 3087  | (65) | - | - | 3743  |

---

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**16. <u>Investments in associates (continued)</u>**

(b) Changes in investments in associates for the years ended December 31, 2025 and 2024 are as follows

(continued):

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | &nbsp;&nbsp;&nbsp;&nbsp;**December 31, 2024** | &nbsp;&nbsp;&nbsp;&nbsp;**December 31, 2024** | &nbsp;&nbsp;&nbsp;&nbsp;**December 31, 2024** | &nbsp;&nbsp;&nbsp;&nbsp;**December 31, 2024** | &nbsp;&nbsp;&nbsp;&nbsp;**December 31, 2024** | &nbsp;&nbsp;&nbsp;&nbsp;**December 31, 2024** |
| **Investees** |  | **Beginning**<br>**balance** | <br>**Investment**<br>**and**<br>**dividend** | **Equity**<br>**method**<br>**income**<br>**(loss)** | **Change in**<br>**other comprehensive income** | &nbsp;&nbsp;&nbsp;&nbsp;**Impairment**<br>**loss** | &nbsp;&nbsp;&nbsp;&nbsp;**Ending**<br>**balance** |
| &nbsp;&nbsp;&nbsp;IGIS Yongsan Office General Private Real Estate Investment Trust 518 | W | 23131  | (5596) | (391) | - | - | 17144  |
| &nbsp;&nbsp;&nbsp;Samsung-dunamu Innovative IT Technology Investment Trust No. 1 |  | 4536  | - | (786) | - | - | 3750  |
| &nbsp;&nbsp;&nbsp;Time Robotics New Technology Investment Trust |  | 3966  | (200) | 12  | - | - | 3778  |
| &nbsp;&nbsp;&nbsp;Ascent-welcome Technology Investment Trust No.2 |  | 8771  | - | (311) | - | - | 8460  |
| &nbsp;&nbsp;&nbsp;Newmain I funds |  | 1991  | - | 7373  | - | - | 9364  |
| &nbsp;&nbsp;&nbsp;Igis General PE Real Estate Investment Trust 517-1 |  | 51736  | 5000  | (1834) | - | - | 54902  |
| &nbsp;&nbsp;&nbsp;SH Ulmus M.P.E. Innovative Venture Fund 7 |  | 3000  | - | 32  | - | - | 3032  |
| &nbsp;&nbsp;&nbsp;Consus Osansegyo No.2 |  | 8104  | - | (95) | - | - | 8009  |
| &nbsp;&nbsp;&nbsp;Mastern General Private Real Estate Investment Trust No.189(Type 1 Beneficiary Securities) |  | 7822  | (7502) | (320) | - | - | - |
| &nbsp;&nbsp;&nbsp;Shinhan AIM Private Fund of Fund 9-B |  | 24018  | 9751  | 2972  | - | - | 36741  |
| &nbsp;&nbsp;&nbsp;Shinhan General Private Real Estate Investment Trust No.3 |  | 7838  | 18970  | (102)  | - | - | 26706  |
| &nbsp;&nbsp;&nbsp;NH Absolute Project L General Private Investment Trust  |  | 4893  | (5264) | 371  | - | - | - |
| &nbsp;&nbsp;&nbsp;Paros Kosdaq Venture General Private Investment Trust No. 5  |  | 5994  | - | 596  | - | - | 6590  |
| &nbsp;&nbsp;&nbsp;Happy Pet Life Care New Technology Investment Association No.2 |  | 3456  | - | (457) | - | - | 2999  |
| &nbsp;&nbsp;&nbsp;Shinhan-soo secondary Fund |  | 5249  | 12250  | (762) | - | - | 16737  |
| &nbsp;&nbsp;&nbsp;TECHFIN RATINGS Co., Ltd. |  | - | 27000  | (1390) | - | - | 25610  |
| &nbsp;&nbsp;&nbsp;Songpa biz cluster PFV Co., Ltd. |  | - | 13700  | (336) | - | - | 13364  |
| &nbsp;&nbsp;&nbsp;Planeta PTE LTD |  | - | 11341  | - | - | - | 11341  |
| &nbsp;&nbsp;&nbsp;The E&Shinhan New Growth Up Fund |  | - | 3600  | (82) | - | - | 3518  |
| &nbsp;&nbsp;&nbsp;Shinhan-GB FutureFlow Fund L.P. |  | - | 5855  | (352) | (353) | - | 5150  |
| &nbsp;&nbsp;&nbsp;Credila Financial Services |  | - | 250270  | 4017  | 8829  | - | 263116  |
| &nbsp;&nbsp;&nbsp;Shinhan Market-Frontier Fund Ⅲ |  | - | 13205  | (414) | - | - | 12791  |
| &nbsp;&nbsp;&nbsp;DB IPO HighYield Fund 1 |  | - | 4000  | 278  | - | - | 4278  |
| &nbsp;&nbsp;&nbsp;Exponential SQUARE Private Investment Trust No.1 |  | - | 6146  | (938) | - | - | 5208  |
| &nbsp;&nbsp;&nbsp;Fine North America Credit Private Mixed Asset Investment Trust 22 |  | - | 4549  | 64  | - | - | 4613  |
| &nbsp;&nbsp;&nbsp;IGIS Private Real Estate Investment No.454 |  | - | 3393  | (25) | - | - | 3368  |
| &nbsp;&nbsp;&nbsp;IGIS Private Real Estate Investment No.462 |  | - | 4607  | (174) | - | - | 4433  |
| &nbsp;&nbsp;&nbsp;BNW Recharge Private Equity Fund |  | - | 6767  | 371  | - | - | 7138  |

---

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**16. <u>Investments in associates (continued)</u>**

(b) Changes in investments in associates for the years ended December 31, 2025 and 2024 are as follows

(continued):

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | &nbsp;&nbsp;&nbsp;&nbsp;**December 31, 2024** | &nbsp;&nbsp;&nbsp;&nbsp;**December 31, 2024** | &nbsp;&nbsp;&nbsp;&nbsp;**December 31, 2024** | &nbsp;&nbsp;&nbsp;&nbsp;**December 31, 2024** | &nbsp;&nbsp;&nbsp;&nbsp;**December 31, 2024** | &nbsp;&nbsp;&nbsp;&nbsp;**December 31, 2024** |
| **Investees** |  | **Beginning**<br>**balance** | <br>**Investment**<br>**and**<br>**dividend** | **Equity**<br>**method**<br>**income**<br>**(loss)** | **Change in**<br>**other comprehensive income** | &nbsp;&nbsp;&nbsp;&nbsp;**Impairment**<br>**loss** | &nbsp;&nbsp;&nbsp;&nbsp;**Ending**<br>**balance** |
| &nbsp;&nbsp;&nbsp;United Partners Realasset Fund No.14 | W  | - | 10000  | (2) | - | - | 9998  |
| &nbsp;&nbsp;&nbsp;Shinhan Securities HIFI Bond SafeR 2Y Private Fund No.12 |  | - | 17929  | 48  | - | - | 17977  |
| &nbsp;&nbsp;&nbsp;Shinhan Securities HIFI Bond SafeR 2Y Private Fund No.13 |  | - | 11996  | 39  | - | - | 12035  |
| &nbsp;&nbsp;&nbsp;Shinhan Securities HIFI Bond SafeR 2Y Private Fund No.14 |  | - | 13953  | (242) | - | - | 13711  |
| &nbsp;&nbsp;&nbsp;Shinhan Securities HIFI Bond SafeR 2Y Private Fund No.15 |  | - | 13955  | (217) | - | - | 13738  |
| &nbsp;&nbsp;&nbsp;Shinhan Securities HIFI Bond SafeR 2Y Private Fund No.16 |  | - | 13837  | (547) | - | - | 13290  |
| &nbsp;&nbsp;&nbsp;Shinhan Securities HIFI Bond SafeR 2Y Private Fund No.17 |  | - | 5270  | 108  | - | - | 5378  |
| &nbsp;&nbsp;&nbsp;Shinhan Securities HIFI Bond SafeR 2Y Private Fund No.18 |  | - | 10530  | 395  | - | - | 10925  |
| &nbsp;&nbsp;&nbsp;Shinhan Securities HIFI Bond SafeR 2Y Private Fund No.19 |  | - | 5270  | (218) | - | - | 5052  |
| &nbsp;&nbsp;&nbsp;SH US Buyback&High Dividend Security Feeder Investment Trust(H)[Equity] |  | - | 4124  | 73  | - | - | 4197  |
| &nbsp;&nbsp;&nbsp;Others |  | 210518  | (9778) | (17080) | - | - | 183660  |
|  | W | 2692031 | 118786 | (23822) | 9063 | (43078) | 2752980 |

---

(\*) Due to cumulative unrealized losses incurred since initial acquisition, this item was recognized as an impairment loss.

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**16. <u>Investments in associates (continued)</u>**

(c) Summarized financial information of major associates as of December 31, 2025 and 2024 is as follows:

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** |
| **Investees** |  | **Asset** | **Liability** | **Operating**<br>**revenue** | **Net profit**<br>**(loss)** | **Other comprehen-**<br>**sive income**<br>**(loss)** | **Total comprehen-**<br>**sive income**<br>**(loss)** |
| &nbsp;&nbsp;&nbsp;BNP Paribas Cardif Life Insurance | W | 2610512  | 2367134  | 47048  | (14043) | - | (14043) |
| &nbsp;&nbsp;&nbsp;Shinhan-Neoplux Energy Newbiz Fund |  | 45420  | 4290  | 5216  | (5022) | - | (5022) |
| &nbsp;&nbsp;&nbsp;Shinhan-Albatross tech investment Fund |  | 11342  | 11  | 2990  | (1978) | - | (1978) |
| &nbsp;&nbsp;&nbsp;VOGO Debt Strategy Qualified IV Private |  | 9193  | 4  | 1503  | (60) | - | (60) |
| &nbsp;&nbsp;&nbsp;Shinhan-Midas Donga Secondary Fund |  | 3417  | - | 1  | (1056) | - | (1056) |
| &nbsp;&nbsp;&nbsp;ShinHan – Soo Young Entrepreneur Investment Fund No.1 |  | 7369  | 103  | 294  | (1238) | - | (1238) |
| &nbsp;&nbsp;&nbsp;Shinhan Praxis K-Growth Global Private Equity Fund |  | 26081  | 1  | 16  | - | - | - |
| &nbsp;&nbsp;&nbsp;Kiwoom Milestone Professional Private Real Estate Trust 19 |  | 101  | 36920  | 8575  | 2194  | - | 2194  |
| &nbsp;&nbsp;&nbsp;Shinhan Global Healthcare Fund 1 |  | 38  | 3507  | 1  | - | - | - |
| &nbsp;&nbsp;&nbsp;Koramco Europe Core Private Placement Real Estate Fund No.2-2 |  | 14162  | 1837  | 8323  | (1404) | - | (1404) |
| &nbsp;&nbsp;&nbsp;Shinhan-Nvestor Liquidity Solution Fund |  | 15085  | 121  | 2301  | (590) | - | (590) |
| &nbsp;&nbsp;&nbsp;Shinhan AIM FoF Fund 1-A |  | 2  | - | 55  | 40  | - | 40  |
| &nbsp;&nbsp;&nbsp;IGIS Global Credit Fund 150-1 |  | 3976  | 3  | (4034) | (4068) | - | (4068) |
| &nbsp;&nbsp;&nbsp;Nomura-Rifa Private Real Estate Investment Trust 19 |  | 1237  | 12519  | (9928) | (11027) | - | (11027) |
| &nbsp;&nbsp;&nbsp;Genesis North America Power Company No.1 PEF |  | 13881  | 35  | 10658  | 1193  | - | 1193  |
| &nbsp;&nbsp;&nbsp;Korea Finance Security Co., Ltd. |  | 41108  | 15296  | 47822  | 2059  | - | 2059  |
| &nbsp;&nbsp;&nbsp;MIEL Co., Ltd. |  | 423  | 565  | - | - | - | - |
| &nbsp;&nbsp;&nbsp;AIP Transportation Specialized Privately Placed Fund Trust #1 |  | 175881  | 178  | 89236  | 6883  | - | 6883  |
| &nbsp;&nbsp;&nbsp;Kiwoom-Shinhan Innovation Fund I |  | 15849  | 341  | 2  | (450) | - | (450) |
| &nbsp;&nbsp;&nbsp;Samchully Midstream Private Placement Special Asset Fund 5-4 |  | 83898  | 25  | 15930  | (6398) | - | (6398) |
| &nbsp;&nbsp;&nbsp;MK Ventures-K Clavis Growth Capital Venture Fund 1  |  | 7  | - | - | (4) | - | (4) |
| &nbsp;&nbsp;&nbsp;Vestas Qualified Investors Private Real Estate Fund Investment Trust No.37 |  | 53514  | 35  | 7454  | (2747) | - | (2747) |
| &nbsp;&nbsp;&nbsp;Milestone Private Real Estate Fund 3  |  | 82313  | 15952  | 19404  | 1145  | - | 1145  |
| &nbsp;&nbsp;&nbsp;Nomura-Rifa Private Real Estate Investment Trust 31  |  | 90451  | 71014  | 9498  | (508) | - | (508) |
| &nbsp;&nbsp;&nbsp;FuturePlay-Shinhan TechInnovation Fund 1 |  | 12764  | 160  | 1201  | 1034  | - | 1034  |
| &nbsp;&nbsp;&nbsp;Vogo Realty Partners Private Real Estate Fund V |  | 47579  | 115  | 14350  | (767) | - | (767) |

---

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**16. <u>Investments in associates (continued)</u>**

(c) Summarized financial information of major associates as of December 31, 2025 and 2024 is as follows (continued):

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** |
| **Investees** |  | **Asset** | **Liability** | **Operating**<br>**revenue** | **Net profit**<br>**(loss)** | **Other comprehen-**<br>**sive income**<br>**(loss)** | **Total comprehen-**<br>**sive income**<br>**(loss)** |
| &nbsp;&nbsp;&nbsp;Korea Credit Bureau  | W | 156968  | 44319  | 195322  | 29489  | - | 29489  |
| &nbsp;&nbsp;&nbsp;Goduck Gangil1 PFV Co., Ltd. |  | 6399  | 330  | (134) | (769) | - | (769) |
| &nbsp;&nbsp;&nbsp;SBC PFV Co., Ltd. |  | 1517864  | 1338087  | (1093) | (10648) | - | (10648) |
| &nbsp;&nbsp;&nbsp;NH-amundi global infra private fund 16 |  | 55639  | 40  | 41577  | (18770) | - | (18770) |
| &nbsp;&nbsp;&nbsp;SH BNCT Professional Investment Type Private Special Asset Investment Trust |  | 284142  | - | 2900  | 13568  | - | 13568  |
| &nbsp;&nbsp;&nbsp;IGIS Real-estate Private Investment Trust No.33 |  | 93022  | 65050  | 10378  | 3631  | - | 3631  |
| &nbsp;&nbsp;&nbsp;Fidelis Global Private Real Estate Trust No.2 |  | 753  | 62  | 1  | - | - | - |
| &nbsp;&nbsp;&nbsp;AIP EURO PRIVATE REAL ESTATE TRUST No. 12 |  | 58792  | 74  | 130  | - | - | - |
| &nbsp;&nbsp;&nbsp;Shinhan Global Healthcare Fund 2 |  | 31  | 183  | 1  | - | - | - |
| &nbsp;&nbsp;&nbsp;Shinhan AIM Real Estate Fund No.1 |  | 32433  | 1479  | 224439  | 17230  | - | 17230  |
| &nbsp;&nbsp;&nbsp;SH Daegu Green Power Cogeneration System Professional Investment Type Private Special Asset Investment Trust  |  | 178424  | 70  | 29854  | 2906  | - | 2906  |
| &nbsp;&nbsp;&nbsp;SH Sangju YC Expressway Professional Investment Type Private Special Asset Investment Trust |  | 68261  | 492  | 0  | (7455) | - | (7455) |
| &nbsp;&nbsp;&nbsp;SH Global Infrastructure Professional Investment Type Private Special Asset Investment Trust No.7-2  |  | 21968  | 28  | 460  | 592  | - | 592  |
| &nbsp;&nbsp;&nbsp;Korea Omega-Shinhan Project Fund I |  | 10725  | - | 70333  | 35586  | - | 35586  |
| &nbsp;&nbsp;&nbsp;Samsung SRA Real Estate Professional Private 45 |  | 146093  | 29969  | 14647  | 6568  | - | 6568  |
| &nbsp;&nbsp;&nbsp;IBK Global New Renewable Energy Special Asset Professional Private2 |  | 96818  | 51  | 17251  | 2605  | - | 2605  |
| &nbsp;&nbsp;&nbsp;Kakao-Shinhan 1st TNYT Fund |  | 49061  | 98  | 647  | 263  | - | 263  |
| &nbsp;&nbsp;&nbsp;Pacific Private Placement Real Estate Fund No.40 |  | 175099  | 98060  | 110276  | 33061  | - | 33061  |
| &nbsp;&nbsp;&nbsp;LB Scotland Amazon Fulfillment Center Fund 29  |  | 35411  | 123  | 27397  | (3480) | - | (3480) |
| &nbsp;&nbsp;&nbsp;JR AMC Hungary Budapest Office Fund 16 |  | 43087  | 1914  | 12442  | 123  | - | 123  |
| &nbsp;&nbsp;&nbsp;Gyeonggi-Neoplux Superman Fund |  | 19336  | - | 6251  | 322  | - | 322  |
| &nbsp;&nbsp;&nbsp;NewWave 6th Fund |  | 33577  | 791  | 2485  | (2907) | - | (2907) |
| &nbsp;&nbsp;&nbsp;Neoplux No.3 Private Equity Fund |  | 111356  | 9271  | 35272  | (19230) | - | (19230) |
| &nbsp;&nbsp;&nbsp;PCC Amberstone Private Equity Fund I |  | 38558  | 1561  | 5875  | (305) | - | (305) |
| &nbsp;&nbsp;&nbsp;KIAMCO POWERLOAN TRUST 4TH |  | 98813  | 13  | 5028  | 1885  | - | 1885  |

---

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**16. <u>Investments in associates (continued)</u>**

(c) Summarized financial information of major associates as of December 31, 2025 and 2024 is as follows (continued):

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** |
| **Investees** |  | **Asset** | **Liability** | **Operating**<br>**revenue** | **Net profit**<br>**(loss)** | **Other comprehen-**<br>**sive income**<br>**(loss)** | **Total comprehen-**<br>**sive income**<br>**(loss)** |
| &nbsp;&nbsp;&nbsp;Mastern Opportunity Seeking Real Estate Fund II | W | 5738  | - | 29833  | 3745  | - | 3745  |
| &nbsp;&nbsp;&nbsp;Neoplux Market-Frontier Secondary Fund  |  | 28177  | - | 1416  | (13237) | - | (13237) |
| &nbsp;&nbsp;&nbsp;KIAMCO Vietnam Solar Special Asset Private Investment Trust |  | 13927  | 124  | 3165  | (402) | - | (402) |
| &nbsp;&nbsp;&nbsp;SHINHAN-NEO Core Industrial Technology Fund |  | 14560  | 288  | 264  | (2032) | - | (2032) |
| &nbsp;&nbsp;&nbsp;SHBNPP Green New Deal Energy Professional Investment Type Private Special Asset Investment Trust No.2 |  | 67224  | 29  | 2943  | 3207  | - | 3207  |
| &nbsp;&nbsp;&nbsp;Eum Private Equity Fund No.7 |  | 45410  | 6  | 10561  | 3729  | - | 3729  |
| &nbsp;&nbsp;&nbsp;AJ-KOSNET Semicon One Venture Fund |  | 14406  | 178  | 2  | (230) | - | (230) |
| &nbsp;&nbsp;&nbsp;Genesis Eco No.1 PEF |  | 30863  | 623  | -  | (7946) | - | (7946) |
| &nbsp;&nbsp;&nbsp;SHINHAN-NEO Market-Frontier 2nd Fund |  | 59139  | 1485  | 11056  | 2653  | - | 2653  |
| &nbsp;&nbsp;&nbsp;Ulmus SHC innovation investment fund |  | 23322  | - | 5587  | 5416  | - | 5416  |
| &nbsp;&nbsp;&nbsp;T Core Industrial Technology 1st Venture PEF |  | 9715  | 3  | 198  | 194  | - | 194  |
| &nbsp;&nbsp;&nbsp;TI First Property Private Investment Trust 1 |  | 2272  | 21  | 5173  | 5115  | - | 5115  |
| &nbsp;&nbsp;&nbsp;Kiwoom-Shinhan Innovation Fund 2 |  | 29907  | 325  | 14854  | 14519  | - | 14519  |
| &nbsp;&nbsp;&nbsp;ETRI Holdings-Shinhan 1st Unicorn Fund |  | 8247  | - | 11  | (144) | - | (144) |
| &nbsp;&nbsp;&nbsp;AVES 1st Corporate Recovery Private Equity Fund |  | 6220  | 316  | - | (33) | - | (33) |
| &nbsp;&nbsp;&nbsp;Reverent-Shinhan Vista Fund  |  | 28061  | - | 2541  | 2237  | - | 2237  |
| &nbsp;&nbsp;&nbsp;JS Shinhan Private Equity Fund  |  | 163377  | 724  | (1555) | (3091) | - | (3091) |
| &nbsp;&nbsp;&nbsp;Meta TB ESG Private Equity Fund I |  | 20410  | - | 8  | (332) | - | (332) |
| &nbsp;&nbsp;&nbsp;Shinhan VC tomorrow venture fund 1 |  | 261781  | 2992  | 89255  | 74939  | - | 74939  |
| &nbsp;&nbsp;&nbsp;Stonebridge-Shinhan Unicorn Secondary Fund  |  | 50970  | 672  | 6450  | 5755  | - | 5755  |
| &nbsp;&nbsp;&nbsp;Tres-Yujin Trust  |  | 26592  | 301  | 233  | 230  | - | 230  |
| &nbsp;&nbsp;&nbsp;Capstone REITs No.26 |  | 50974  | 40837  | 147  | (600) | - | (600) |
| &nbsp;&nbsp;&nbsp;JB Incheon-Bucheon REITS No.54 |  | 14729  | 11  | 2109  | 2081  | - | 2081  |
| &nbsp;&nbsp;&nbsp;Hankook Smart Real Asset Investment Trust No.3 |  | 6352  | 103  | 7701  | (7225) | - | (7225) |
| &nbsp;&nbsp;&nbsp;JB Hwaseong-Hadong REITs No.53 |  | 2559  | 3  | 3293  | 3268  | - | 3268  |
| &nbsp;&nbsp;&nbsp;KB Oaktree Trust No.3 |  | 28742  | 798  | 10358  | 1632  | - | 1632  |
| &nbsp;&nbsp;&nbsp;KAI-The Square Fund 1 |  | 85  | 62  | 98  | 63  | - | 63  |
| &nbsp;&nbsp;&nbsp;SH Real Estate Loan Investment Type Private Real Estate Investment Trust No.2 |  | 106145  | 30  | 7492  | 10565  | - | 10565  |
| &nbsp;&nbsp;&nbsp;Shinhan JigaeNamsan Road Private Special Asset Investment Trust |  | 162241  | 84  | 6497  | 6245  | - | 6245  |
| &nbsp;&nbsp;&nbsp;KB Distribution Private Real Estate 3-1 |  | 2  | 100  | (100) | (2603) | - | (2603) |
| &nbsp;&nbsp;&nbsp;Pacific Private Investment Trust No.49-1  |  | 46448  | 184  | 16845  | 10946  | - | 10946  |
| &nbsp;&nbsp;&nbsp;KIWOOM Real estate private placement fund for normal investors No. 31 |  | 4  | 77  | (34) | (50) | - | (50) |

---

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**16. <u>Investments in associates (continued)</u>**

(c) Summarized financial information of major associates as of December 31, 2025 and 2024 is as follows (continued):

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** |
| **Investees** |  | **Asset** | **Liability** | **Operating**<br>**revenue** | **Net profit**<br>**(loss)** | **Other comprehen-**<br>**sive income**<br>**(loss)** | **Total comprehen-**<br>**sive income**<br>**(loss)** |
| &nbsp;&nbsp;&nbsp;RIFA Real estate private placement fund for normal investors No. 51  | W | 19  | 47  | 4756  | (5) | - | (5) |
| &nbsp;&nbsp;&nbsp;Shinhan-Kunicorn first Fund |  | 20102  | - | 2  | (4498) | - | (4498) |
| &nbsp;&nbsp;&nbsp;Shinhan-Quantum Startup Fund |  | 11281  | - | 29  | (238) | - | (238) |
| &nbsp;&nbsp;&nbsp;Shinhan Simone Fund Ⅰ |  | 3917  | 27  | 199  | 94  | - | 94  |
| &nbsp;&nbsp;&nbsp;Korea Investment develop seed Trust No.1 |  | 26936  | 111  | 3244  | 2780  | - | 2780  |
| &nbsp;&nbsp;&nbsp;STIC ALT Global II Private Equity Fund |  | 45262  | 216  | 4458  | 777  | - | 777  |
| &nbsp;&nbsp;&nbsp;DDI LVC Master Real Estate Investment Trust Co., Ltd.  |  | 30991  | 9  | (3) | (7607) | - | (7607) |
| &nbsp;&nbsp;&nbsp;Find-Green New Deal 2nd Equity Fund |  | 20984  | 47  | 1932  | 1781  | - | 1781  |
| &nbsp;&nbsp;&nbsp;ShinhanFitrin 1st Technology Business Investment Association  |  | 24396  | 64  | 688  | (1843) | - | (1843) |
| &nbsp;&nbsp;&nbsp;Koramco Private Real Estate Fund 143 |  | 26771  | 65  | 4706  | 4696  | - | 4696  |
| &nbsp;&nbsp;&nbsp;Korea Investment Top Mezzanine Private Real Estate Trust No.1 |  | 13706  | 26  | 1336  | (5108) | - | (5108) |
| &nbsp;&nbsp;&nbsp;LB YoungNam Logistics Private Trust No.40 |  | 38857  | 10  | 2937  | 2748  | - | 2748  |
| &nbsp;&nbsp;&nbsp;Shinhan-Cognitive Start-up Fund L.P. |  | 12933  | 277  | 1534  | (189) | - | (189) |
| &nbsp;&nbsp;&nbsp;Logisvalley Shinhan REIT Co., Ltd.  |  | 78074  | 55469  | 3874  | (710) | - | (710) |
| &nbsp;&nbsp;&nbsp;Shinhan-G.N.Tech Smart Innovation Fund |  | 21948  | - | 7129  | 4260  | - | 4260  |
| &nbsp;&nbsp;&nbsp;Shinhan-Gene and New Normal First Mover Venture Investment Equity Fund 1st |  | 16757  | 373  | 7  | (732) | - | (732) |
| &nbsp;&nbsp;&nbsp;Korea Investment Green Newdeal Infra Trust No.1 |  | 62377  | 27  | (217) | (268) | - | (268) |
| &nbsp;&nbsp;&nbsp;BTS 2nd Private Equity Fund |  | 42226  | 157  | - | (104) | - | (104) |
| &nbsp;&nbsp;&nbsp;NH-J&-IBKC Label Technology Fund |  | 30499  | 721  | 15844  | 14495  | - | 14495  |
| &nbsp;&nbsp;&nbsp;Shinhan-Sneak Peek Bio&Healthcare Bounce Back Fund |  | 7905  | - | 3511  | 2374  | - | 2374  |
| &nbsp;&nbsp;&nbsp;Shinhan-isquare Venture PEF 1 |  | 8296  | 42  | 7  | (155) | - | (155) |
| &nbsp;&nbsp;&nbsp;Aurum Goldrush ESG Private Fund No. 1 |  | 9082  | 12  | (1155) | (1546) | - | (1546) |
| &nbsp;&nbsp;&nbsp;Nextrade Co., Ltd. |  | 135357  | 14107  | 67843  | - | - | - |
| &nbsp;&nbsp;&nbsp;IBKC-Behigh Fund 1st |  | 10414  | - | 17  | (215) | - | (215) |
| &nbsp;&nbsp;&nbsp;DS-Shinhan-JBWoori New Media New Technology Investment Fund No.1 |  | 34374  | - | 9567  | 8728  | - | 8728  |
| &nbsp;&nbsp;&nbsp;VOGO Debt Strategy General Private Real Estate Investment Trust No. 18 |  | 35558  | 21  | 4694  | 2608  | - | 2608  |
| &nbsp;&nbsp;&nbsp;Koramco IPO REITS Mezzanine General Private Investment Trust No. 38  |  | 4731  | 21  | 477  | 456  | - | 456  |
| &nbsp;&nbsp;&nbsp;TogetherKorea Private Investment Trust No. 6  |  | 5542  | 1  | 120  | 117  | - | 117  |
| &nbsp;&nbsp;&nbsp;TogetherKorea Private Investment Trust No. 7  |  | 5542  | 1  | 120  | 117  | - | 117  |

---

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**16. <u>Investments in associates (continued)</u>**

(c) Summarized financial information of major associates as of December 31, 2025 and 2024 is as follows (continued):

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** |
| **Investees** |  | **Asset** | **Liability** | **Operating**<br>**revenue** | **Net profit**<br>**(loss)** | **Other comprehen-**<br>**sive income**<br>**(loss)** | **Total comprehen-**<br>**sive income**<br>**(loss)** |
| &nbsp;&nbsp;&nbsp;Kiwoom Core Industrial Technology Investment Fund No.3 | W | 12014  | - | 831  | (127) | - | (127) |
| &nbsp;&nbsp;&nbsp;Penture K-Content Investment Fund |  | 81619  | 337  | 67  | (16373) | - | (16373) |
| &nbsp;&nbsp;&nbsp;2023 Shinhan-JB Woori-Daeshin Listed Companies New Technology Fund  |  | 35845  | 69  | 10805  | 10183  | - | 10183  |
| &nbsp;&nbsp;&nbsp;Hana Alternative Investment Kosmes PCBO General PEF No. 1 |  | 14278  | 15  | 2110  | 1852  | - | 1852  |
| &nbsp;&nbsp;&nbsp;Shinhan-Timefolio Bio Accelerator Fund |  | 35826  | 464  | 24201  | 23693  | - | 23693  |
| &nbsp;&nbsp;&nbsp;Shinhan M&A-ESG Fund |  | 38799  | - | 4015  | 2799  | - | 2799  |
| &nbsp;&nbsp;&nbsp;Shinhan Mid and Small-Sized Office Value-Added MO REIT Co., Ltd. |  | 68818  | 70  | 11231  | 4276  | - | 4276  |
| &nbsp;&nbsp;&nbsp;Shinhan Time Secondary Blind New Technology Investment Trust |  | 23448  | - | 8951  | 8686  | - | 8686  |
| &nbsp;&nbsp;&nbsp;Shinhan DS Secondary Investment Fund |  | 62721  | 153  | 43951  | 43452  | - | 43452  |
| &nbsp;&nbsp;&nbsp;Shinhan-openwater pre-IPO Investment Trust 1 |  | 13138  | 6  | 6899  | 6700  | - | 6700  |
| &nbsp;&nbsp;&nbsp;Shinhan-CJ TechInnovation Fund 1st |  | 11053  | - | 68  | (435) | - | (435) |
| &nbsp;&nbsp;&nbsp;Shinhan-Eco Venture Fund 2nd |  | 9001  | 42  | 249  | (108) | - | (108) |
| &nbsp;&nbsp;&nbsp;Heungkuk-Shinhan the1st Visionary Technology Investment Trust no. 1 |  | 17637  | - | 725  | 133  | - | 133  |
| &nbsp;&nbsp;&nbsp;Hantoo Shinhan Lake K-beauty Technology Investment Trust |  | 30811  | - | - | (1098) | - | (1098) |
| &nbsp;&nbsp;&nbsp;Shinhan HB Wellness 1st Investment Trust |  | 11722  | - | 869  | 750  | - | 750  |
| &nbsp;&nbsp;&nbsp;Korea real Asset Fund No.3 |  | 65623  | 239  | 8086  | 3787  | - | 3787  |
| &nbsp;&nbsp;&nbsp;Timefolio Tech Fund I |  | 14419  | 71  | 531  | 231  | - | 231  |
| &nbsp;&nbsp;&nbsp;PineStreet Global Corporate FoF XIII-2 |  | 8150  | 8  | 1805  | 1126  | - | 1126  |
| &nbsp;&nbsp;&nbsp;IGIS Yongsan Office General Private Real Estate Investment Trust 518 |  | 262395  | 208976  | 11179  | (9200) | - | (9200) |
| &nbsp;&nbsp;&nbsp;SH K-REITs Infra Real Estate Investment Trust (FoFs) |  | 13671  | 16  | 2515  | 2339  | - | 2339  |
| &nbsp;&nbsp;&nbsp;Samsung-dunamu Innovative IT Technology Investment Trust No. 1 |  | 17420  | - | 671  | 1109  | - | 1109  |
| &nbsp;&nbsp;&nbsp;Time Robotics New Technology Investment Trust |  | 12158  | - | 245  | (255) | - | (255) |
| &nbsp;&nbsp;&nbsp;Ascent-welcome Technology Investment Trust No.2 |  | 25688  | - | 1144  | 1092  | - | 1092  |
| &nbsp;&nbsp;&nbsp;Igis General PE Real Estate Investment Trust 517-1 |  | 57644  | 346  | (1786) | (2573) | (776) | (3349) |
| &nbsp;&nbsp;&nbsp;SH Ulmus M.P.E. Innovative Venture Fund 7 |  | 10268  | - | 206  | (347) | - | (347) |
| &nbsp;&nbsp;&nbsp;Consus Osansegyo No.2 |  | 16406  | 388  | 383  | - | - | - |
| &nbsp;&nbsp;&nbsp;Shinhan AIM Private Fund of Fund 9-B |  | 174507  | 123  | 35441  | 7208  | - | 7208  |
| &nbsp;&nbsp;&nbsp;Shinhan General Private Real Estate Investment Trust No.3 |  | 143216  | 1616  | 8811  | 9747  | - | 9747  |
| &nbsp;&nbsp;&nbsp;Paros Kosdaq Venture General Private Investment Trust No. 5  |  | 12354  | 2  | 921  | 374  | - | 374  |

---

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**16. <u>Investments in associates (continued)</u>**

(c) Summarized financial information of major associates as of December 31, 2025 and 2024 is as follows (continued):

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** |
| **Investees** |  | **Asset** | **Liability** | **Operating**<br>**revenue** | **Net profit**<br>**(loss)** | **Other comprehen-**<br>**sive income**<br>**(loss)** | **Total comprehen-**<br>**sive income**<br>**(loss)** |
| &nbsp;&nbsp;&nbsp;Shinhan-soo secondary Fund | W  | 22475  | - | 1272  | 908  | - | 908  |
| &nbsp;&nbsp;&nbsp;TECHFIN RATINGS Co., Ltd. |  | 26117  | 3606  | 1370  | (5711) | - | (5711) |
| &nbsp;&nbsp;&nbsp;Songpa biz cluster PFV Co., Ltd. |  | 2061152  | 2013972  | - | (1595) | - | (1595) |
| &nbsp;&nbsp;&nbsp;Planeta PTE LTD |  | 36720  | - | 3719  | 2694  | - | 2694  |
| &nbsp;&nbsp;&nbsp;The E&Shinhan New Growth Up Fund |  | 14992  | - | 3129  | 2796  | - | 2796  |
| &nbsp;&nbsp;&nbsp;HHR Special Situation Real Estate Private Investment Trust No. 13 |  | 16118  | 37  | 3701  | 3455  | - | 3455  |
| &nbsp;&nbsp;&nbsp;Shinhan-GB FutureFlow Fund L.P. |  | 16177  | 12  | 9  | (626) | - | (626) |
| &nbsp;&nbsp;&nbsp;Credila Financial Services |  | 8555773  | 7082850  | 907033  | 199394  | (6759) | 192635  |
| &nbsp;&nbsp;&nbsp;Shinhan-DS Mezzanine Fund 1 |  | 24137  | - | 5679  | 5128  | - | 5128  |
| &nbsp;&nbsp;&nbsp;Shinhan Time BM sobujang Fund |  | 11462  | - | 1004  | 734  | - | 734  |
| &nbsp;&nbsp;&nbsp;Tigris Fund No. 58 |  | 18286  | - | 15760  | 15612  | - | 15612  |
| &nbsp;&nbsp;&nbsp;Shinhan Market-Frontier Fund Ⅲ |  | 51059  | - | 3594  | 2001  | - | 2001  |
| &nbsp;&nbsp;&nbsp;Fine North America Credit Private Mixed Asset Investment Trust 22 |  | 10641  | 641  | 1764  | 787  | - | 787  |
| &nbsp;&nbsp;&nbsp;IGIS Private Real Estate Investment No.454 |  | 14004  | 15  | 1  | (25) | - | (25) |
| &nbsp;&nbsp;&nbsp;IGIS Private Real Estate Investment No.462 |  | 6372  | 47  | 6  | (81) | - | (81) |
| &nbsp;&nbsp;&nbsp;BNW Recharge Private Equity Fund |  | 21346  | 133  | 3  | (12570) | - | (12570) |
| &nbsp;&nbsp;&nbsp;United Partners Realasset Fund No.14 |  | 30260  | 53  | 458  | 405  | - | 405  |
| &nbsp;&nbsp;&nbsp;Shinhan Securities HIFI Bond SafeR 2Y Private Fund No.14 |  | 1130346  | 916520  | 62187  | 35016  | - | 35016  |
| &nbsp;&nbsp;&nbsp;Shinhan Securities HIFI Bond SafeR 2Y Private Fund No.15 |  | 1115837  | 912310  | 55065  | 27165  | - | 27165  |
| &nbsp;&nbsp;&nbsp;Shinhan Securities HIFI Bond SafeR 2Y Private Fund No.16 |  | 1085990  | 877765  | 65151  | 35020  | - | 35020  |
| &nbsp;&nbsp;&nbsp;Shinhan Securities HIFI Bond SafeR 2Y Private Fund No.17 |  | 540904  | 443282  | 37459  | 24955  | - | 24955  |
| &nbsp;&nbsp;&nbsp;Shinhan Securities HIFI Bond SafeR 2Y Private Fund No.18 |  | 1110136  | 877285  | 87835  | 61808  | - | 61808  |
| &nbsp;&nbsp;&nbsp;Shinhan Securities HIFI Bond SafeR 2Y Private Fund No.19 |  | 532152  | 416574  | 50597  | 38412  | - | 38412  |
| &nbsp;&nbsp;&nbsp;SH US Buyback&High Dividend Security Feeder Investment Trust(H)[Equity] |  | 22143  | 102  | 5643  | 2597  | - | 2597  |
| &nbsp;&nbsp;&nbsp;SH Prestige High Dividend Security Feeder No.1[Equity] |  | 28356  | 52  | 9538  | 9319  | - | 9319  |
| &nbsp;&nbsp;&nbsp;IGIS Real Estate General Private Feeder Investment Company No.562 |  | 24919  | 663  | (53) | (1716) | (1536) | (3252) |
| &nbsp;&nbsp;&nbsp;Shinhan Securities HIFI Bond SafeR 2Y Private Fund No.21 |  | 1584731  | 1289266  | 43763  | (20336) | - | (20336) |
| &nbsp;&nbsp;&nbsp;Shinhan Securities HIFI Bond SafeR 2Y Private Fund No.22 |  | 1565827  | 1255271  | 43249  | (5250) | - | (5250) |
| &nbsp;&nbsp;&nbsp;Shinhan Securities HIFI Bond SafeR 2Y Private Fund No.23 |  | 1378370  | 1085625  | 34074  | (23051) | - | (23051) |
| &nbsp;&nbsp;&nbsp;Finflow |  | 46860  | 3444  | 6876  | (133) | (858) | (991) |
| &nbsp;&nbsp;&nbsp;Fireant Media and Digital Service Joint Stock Company |  | 26827  | 97  | 403  | (1155) | - | (1155) |
| &nbsp;&nbsp;&nbsp;ST EIP Holdings Inc. |  | 614640  | 506195  | 26162  | 2582  | - | 2582  |

---

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**16. <u>Investments in associates (continued)</u>**

(c) Summarized financial information of major associates as of December 31, 2025 and 2024 is as follows (continued):

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** |
| **Investees** |  | **Asset** | **Liability** | **Operating**<br>**revenue** | **Net profit**<br>**(loss)** | **Other comprehen-**<br>**sive income**<br>**(loss)** | **Total comprehen-**<br>**sive income**<br>**(loss)** |
| &nbsp;&nbsp;&nbsp;AMP Capital Global Infrastructure Fund II B L | W  | 1630662  | 92506  | 290372  | (78067) | - | (78067) |
| &nbsp;&nbsp;&nbsp;Post CR REITS No.1 |  | 5008  | 8  | 8  | - | - | - |
| &nbsp;&nbsp;&nbsp;SH US Long Term Treasury Plus Security Feeder Investment Trust(H)[Bond-FoFs] |  | 20452  | 139  | 1596  | (206) | - | (206) |

---

(\*) Excluded associates that are not accounted for using the equity method due to disposal or for which financial information was not available as of December 31, 2025.

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**16. <u>Investments in associates (continued)</u>**

(c) Summarized financial information of major associates as of December 31, 2025 and 2024 is as follows (continued):

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
| **Investees** |  | **Asset** | **Liability** | **Operating**<br>**revenue** | **Net profit**<br>**(loss)** | **Other comprehen-**<br>**sive income**<br>**(loss)** | **Total comprehen-**<br>**sive income**<br>**(loss)** |
| &nbsp;&nbsp;&nbsp;BNP Paribas Cardif Life Insurance | W | 2714143  | 2471042  | 57764  | (22798) | 3917  | (18881) |
| &nbsp;&nbsp;&nbsp;Shinhan-Neoplux Energy Newbiz Fund |  | 52550  | 6398  | 26255  | 1591  | - | 1591  |
| &nbsp;&nbsp;&nbsp;Shinhan-Albatross tech investment Fund |  | 17575  | 229  | 17168  | (1666) | - | (1666) |
| &nbsp;&nbsp;&nbsp;VOGO Debt Strategy Qualified IV Private |  | 18573  | 8  | 5810  | 3229  | - | 3229  |
| &nbsp;&nbsp;&nbsp;Shinhan-Midas Donga Secondary Fund |  | 6304  | - | 868  | (797) | - | (797) |
| &nbsp;&nbsp;&nbsp;ShinHan – Soo Young Entrepreneur Investment Fund No.1 |  | 14244  | 157  | 30591  | 17828  | - | 17828  |
| &nbsp;&nbsp;&nbsp;Shinhan Praxis K-Growth Global Private Equity Fund |  | 26087  | 6  | 18  | (14) | - | (14) |
| &nbsp;&nbsp;&nbsp;Kiwoom Milestone Professional Private Real Estate Trust 19 |  | - | 39013  | 6701  | 3188  | - | 3188  |
| &nbsp;&nbsp;&nbsp;Shinhan Global Healthcare Fund 1 |  | 39  | 4925  | - | (1) | - | (1) |
| &nbsp;&nbsp;&nbsp;KB NA Hickory Private Special Asset Fund |  | 51721  | 5072  | 15337  | (1158) | - | (1158) |
| &nbsp;&nbsp;&nbsp;Koramco Europe Core Private Placement Real Estate Fund No.2-2 |  | 17260  | 1779  | (1381)  | (10599) | - | (10599) |
| &nbsp;&nbsp;&nbsp;KDBC-Midas Dong-A Global contents Fund |  | 11416  | 62  | 4 | (7080) | - | (7080) |
| &nbsp;&nbsp;&nbsp;Shinhan-Nvestor Liquidity Solution Fund |  | 20841  | 270  | 2354  | 1236  | - | 1236  |
| &nbsp;&nbsp;&nbsp;Shinhan AIM FoF Fund 1-A |  | 39244  | 30  | 12872  | 5353 | - | 5353 |
| &nbsp;&nbsp;&nbsp;IGIS Global Credit Fund 150-1 |  | 19966  | 12  | 5917  | 5008 | - | 5008 |
| &nbsp;&nbsp;&nbsp;Genesis North America Power Company No.1 PEF |  | 15514  | - | 7299  | 7018  | - | 7018  |
| &nbsp;&nbsp;&nbsp;SH MAIN Professional Investment Type Private Mixed Asset Investment Trust No.3 |  | 40375  | 81  | 28764  | 28406  | - | 28406  |
| &nbsp;&nbsp;&nbsp;Korea Finance Security Co., Ltd. |  | 36984  | 13230  | 46929  | 1991  | - | 1991  |
| &nbsp;&nbsp;&nbsp;MIEL Co., Ltd. |  | 423  | 565  | - | - | - | - |
| &nbsp;&nbsp;&nbsp;AIP Transportation Specialized Privately Placed Fund Trust #1 |  | 165492  | 885  | (88843)  | (152566) | - | (152566) |
| &nbsp;&nbsp;&nbsp;Kiwoom-Shinhan Innovation Fund I |  | 16166  | 209  | 469  | 253  | - | 253  |
| &nbsp;&nbsp;&nbsp;Samchully Midstream Private Placement Special Asset Fund 5-4 |  | 94792 | 30  | 22021  | 9371 | - | 9371 |
| &nbsp;&nbsp;&nbsp;MK Ventures-K Clavis Growth Capital Venture Fund 1 (\*) |  | 10 | - | 151  | 146  | - | 146  |
| &nbsp;&nbsp;&nbsp;Vestas Qualified Investors Private Real Estate Fund Investment Trust No.37 |  | 59045  | 23  | 11969 | 2925 | - | 2925 |
| &nbsp;&nbsp;&nbsp;Milestone Private Real Estate Fund 3  |  | 59637  | - | 1297  | (10711) | - | (10711) |
| &nbsp;&nbsp;&nbsp;Nomura-Rifa Private Real Estate Investment Trust 31  |  | 92219  | 71961  | 43830  | 32959  | - | 32959  |
| &nbsp;&nbsp;&nbsp;SH Senior Loan Professional Investment Type Private Mixed Asset Investment Trust No.2  |  | 11845  | 6  | 1183  | 1265  | - | 1265  |

---

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**16. <u>Investments in associates (continued)</u>**

(c) Summarized financial information of major associates as of December 31, 2025 and 2024 is as follows (continued):

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
| **Investees** |  | **Asset** | **Liability** | **Operating**<br>**revenue** | **Net profit**<br>**(loss)** | **Other comprehen-**<br>**sive income**<br>**(loss)** | **Total comprehen-**<br>**sive income**<br>**(loss)** |
| &nbsp;&nbsp;&nbsp;FuturePlay-Shinhan TechInnovation Fund 1 | W | 11855  | 285  | 2219  | (1648) | - | (1648) |
| &nbsp;&nbsp;&nbsp;Stonebridge Corporate 1st Fund |  | 9016  | 1  | - | (373) | - | (373) |
| &nbsp;&nbsp;&nbsp;Vogo Realty Partners Private Real Estate Fund V |  | 49374  | 96  | 5403  | (6973) | - | (6973) |
| &nbsp;&nbsp;&nbsp;Korea Credit Bureau  |  | 153079  | 68920  | 172186  | 9791  | - | 9791  |
| &nbsp;&nbsp;&nbsp;Goduck Gangil1 PFV Co., Ltd. |  | 9794  | 542  | 85798  | 6326  | - | 6326  |
| &nbsp;&nbsp;&nbsp;SBC PFV Co., Ltd. |  | 1315956  | 1125532  | 4 | (7622) | - | (7622) |
| &nbsp;&nbsp;&nbsp;NH-amundi global infra private fund 16 |  | 72552  | 6617  | 84498  | 38998  | - | 38998  |
| &nbsp;&nbsp;&nbsp;SH BNCT Professional Investment Type Private Special Asset Investment Trust |  | 311321  | - | 3086  | 17396  | - | 17396  |
| &nbsp;&nbsp;&nbsp;Sparklabs-Shinhan Opportunity Fund 1 |  | 5505  | - | 25  | (2405) | - | (2405) |
| &nbsp;&nbsp;&nbsp;IGIS Real-estate Private Investment Trust No.33 |  | 93113  | 54852  | 5709  | 2863 | - | 2863 |
| &nbsp;&nbsp;&nbsp;Goduck Gangil10 PFV Co., Ltd. |  | 31122  | 144  | 59353  | 6350  | - | 6350  |
| &nbsp;&nbsp;&nbsp;Fidelis Global Private Real Estate Trust No.2 |  | 748  | 57  | (1) | (2) | - | (2) |
| &nbsp;&nbsp;&nbsp;AIP EURO PRIVATE REAL ESTATE TRUST No. 12 |  | 145170  | 59302  | (7077)  | (10179) | - | (10179) |
| &nbsp;&nbsp;&nbsp;Shinhan Global Healthcare Fund 2 |  | 31  | 183  | 1  | - | - | - |
| &nbsp;&nbsp;&nbsp;Shinhan AIM Real Estate Fund No.2 |  | 6641  | 1461  | 123427  | (89613) | - | (89613) |
| &nbsp;&nbsp;&nbsp;Shinhan AIM Real Estate Fund No.1 |  | 14604  | 877  | 164469  | (245607) | - | (245607) |
| &nbsp;&nbsp;&nbsp;SH Daegu Green Power Cogeneration System Professional Investment Type Private Special Asset Investment Trust  |  | 179396  | 52  | 22204  | 25277  | - | 25277  |
| &nbsp;&nbsp;&nbsp;SH Sangju YC Expressway Professional Investment Type Private Special Asset Investment Trust |  | 75611  | 426  | 11878  | 6489  | - | 6489  |
| &nbsp;&nbsp;&nbsp;SH Global Infrastructure Professional Investment Type Private Special Asset Investment Trust No.7-2  |  | 22106  | 29  | 2581  | 2283  | - | 2283  |
| &nbsp;&nbsp;&nbsp;Korea Omega-Shinhan Project Fund I |  | 38945  | - | 19657  | 19599  | - | 19599  |
| &nbsp;&nbsp;&nbsp;Samsung SRA Real Estate Professional Private 45 |  | 139222  | 18119  | (11232)  | (11358) | - | (11358) |
| &nbsp;&nbsp;&nbsp;IBK Global New Renewable Energy Special Asset Professional Private2 |  | 114189  | - | (4160)  | (32244) | - | (32244) |
| &nbsp;&nbsp;&nbsp;VS Cornerstone Fund |  | 8085  | 254  | - | (134) | - | (134) |
| &nbsp;&nbsp;&nbsp;NH-Amundi US Infrastructure Private Fund2 |  | 2100  | 1  | 107  | 6423  | - | 6423  |
| &nbsp;&nbsp;&nbsp;Kakao-Shinhan 1st TNYT Fund |  | 48793  | 96  | 12387  | 7840  | - | 7840  |
| &nbsp;&nbsp;&nbsp;Pacific Private Placement Real Estate Fund No.40 |  | 145794  | 98798  | 4270  | 3022 | - | 3022 |
| &nbsp;&nbsp;&nbsp;Mastern Private Real Estate Loan Fund No.2 |  | 3977  | 14  | 627  | 590  | - | 590  |
| &nbsp;&nbsp;&nbsp;LB Scotland Amazon Fulfillment Center Fund 29  |  | 29223  | 227  | 3917  | (16566)  | - | (16566)  |
| &nbsp;&nbsp;&nbsp;JR AMC Hungary Budapest Office Fund 16 |  | 42031  | 1543  | 858 | 858 | - | 858 |
| &nbsp;&nbsp;&nbsp;EDNCENTRAL Co., Ltd. |  | 122357  | 200291  | (35285)  | (70591) | - | (70591) |

---

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**16. <u>Investments in associates (continued)</u>**

(c) Summarized financial information of major associates as of December 31, 2025 and 2024 is as follows (continued):

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
| **Investees** |  | **Asset** | **Liability** | **Operating**<br>**revenue** | **Net profit**<br>**(loss)** | **Other comprehen-**<br>**sive income**<br>**(loss)** | **Total comprehen-**<br>**sive income**<br>**(loss)** |
| &nbsp;&nbsp;&nbsp;Gyeonggi-Neoplux Superman Fund | W | 20711  | 1697  | 716  | (4218) | - | (4218) |
| &nbsp;&nbsp;&nbsp;NewWave 6th Fund |  | 36572  | 878  | 9185  | (5276) | - | (5276) |
| &nbsp;&nbsp;&nbsp;Neoplux No.3 Private Equity Fund |  | 129055  | 7532  | 1307  | (64247) | - | (64247) |
| &nbsp;&nbsp;&nbsp;PCC Amberstone Private Equity Fund I |  | 67099  | - | 17359  | 12898  | - | 12898  |
| &nbsp;&nbsp;&nbsp;KIAMCO POWERLOAN TRUST 4TH |  | 102831  | 13  | 8143  | 12529  | - | 12529  |
| &nbsp;&nbsp;&nbsp;Mastern Opportunity Seeking Real Estate Fund II |  | 25087  | 1362  | 12764  | (13478) | - | (13478) |
| &nbsp;&nbsp;&nbsp;Neoplux Market-Frontier Secondary Fund  |  | 41423  | 2  | 13712  | 8889  | - | 8889  |
| &nbsp;&nbsp;&nbsp;Synergy Green New Deal 1st New Technology Business Investment Fund |  | 38542  | - | 2578  | 2180  | - | 2180  |
| &nbsp;&nbsp;&nbsp;KIAMCO Vietnam Solar Special Asset Private Investment Trust |  | 14267  | 62  | 4527  | 1697 | - | 1697 |
| &nbsp;&nbsp;&nbsp;SHINHAN-NEO Core Industrial Technology Fund |  | 16704  | 400  | 21363  | 7522  | - | 7522  |
| &nbsp;&nbsp;&nbsp;SHBNPP Green New Deal Energy Professional Investment Type Private Special Asset Investment Trust No.2 |  | 72396  | 31  | 3173  | 2973  | - | 2973  |
| &nbsp;&nbsp;&nbsp;Eum Private Equity Fund No.7 |  | 43608  | 4  | 2427  | 1857  | - | 1857  |
| &nbsp;&nbsp;&nbsp;Kiwoom Hero No.4 Private Equity Fund |  | 19934  | - | 3624  | 4042  | - | 4042  |
| &nbsp;&nbsp;&nbsp;AJ-KOSNET Semicon One Venture Fund |  | 14576  | 122  | 1827  | 1613  | - | 1613  |
| &nbsp;&nbsp;&nbsp;Timefolio The Venture-V second |  | 6589  | 3  | 2744  | 31 | - | 31 |
| &nbsp;&nbsp;&nbsp;Shinhan Smilegate Global PEF I |  | 27798  | 475  | (18714)  | (19824) | - | (19824) |
| &nbsp;&nbsp;&nbsp;Genesis Eco No.1 PEF |  | 38654  | 469  | - | (490) | - | (490) |
| &nbsp;&nbsp;&nbsp;SHINHAN-NEO Market-Frontier 2nd Fund |  | 65802  | 1402  | 11931  | 691  | - | 691  |
| &nbsp;&nbsp;&nbsp;J& Moorim Jade Investment Fund |  | 21508  | - | 1862  | 1740  | - | 1740  |
| &nbsp;&nbsp;&nbsp;Ulmus SHC innovation investment fund |  | 17910  | - | 207  | (366) | - | (366) |
| &nbsp;&nbsp;&nbsp;T Core Industrial Technology 1st Venture PEF |  | 9541  | 23  | 206  | (2800) | - | (2800) |
| &nbsp;&nbsp;&nbsp;TI First Property Private Investment Trust 1 |  | 7776  | 21  | 4139 | 507 | - | 507 |
| &nbsp;&nbsp;&nbsp;Kiwoom-Shinhan Innovation Fund 2 |  | 23991  | 129  | 429  | (200) | - | (200) |
| &nbsp;&nbsp;&nbsp;ETRI Holdings-Shinhan 1st Unicorn Fund |  | 9391  | - | 7  | (197) | - | (197) |
| &nbsp;&nbsp;&nbsp;SJ ESG Innovative Growth Fund |  | 10941  | 39  | 1  | (3791) | - | (3791) |
| &nbsp;&nbsp;&nbsp;AVES 1st Corporate Recovery Private Equity Fund |  | 6131  | 194  | - | (321) | - | (321) |

---

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**16. <u>Investments in associates (continued)</u>**

(c) Summarized financial information of major associates as of December 31, 2025 and 2024 is as follows (continued):

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
| **Investees** |  | **Asset** | **Liability** | **Operating**<br>**revenue** | **Net profit**<br>**(loss)** | **Other comprehen-**<br>**sive income**<br>**(loss)** | **Total comprehen-**<br>**sive income**<br>**(loss)** |
| &nbsp;&nbsp;&nbsp;Reverent-Shinhan Vista Fund  | W | 25415  | - | 6002  | 5629  | - | 5629  |
| &nbsp;&nbsp;&nbsp;JS Shinhan Private Equity Fund  |  | 165748  | 1  | (39164)  | (40720) | - | (40720) |
| &nbsp;&nbsp;&nbsp;Meta TB ESG Private Equity Fund I |  | 20742  | - | 23  | (321) | - | (321) |
| &nbsp;&nbsp;&nbsp;Shinhan VC tomorrow venture fund 1 |  | 180741  | 2474  | 19038  | (467) | - | (467) |
| &nbsp;&nbsp;&nbsp;H-IOTA Fund |  | 38306  | 517  | 10346  | 10044  | - | 10044  |
| &nbsp;&nbsp;&nbsp;Stonebridge-Shinhan Unicorn Secondary Fund  |  | 52230  | - | 71  | (6) | - | (6) |
| &nbsp;&nbsp;&nbsp;Tres-Yujin Trust  |  | 26264  | 202  | 5347  | 5344 | - | 5344  |
| &nbsp;&nbsp;&nbsp;Shinhan-Time mezzanine blind Fund |  | 32851  | - | 4901  | 4613  | - | 4613  |
| &nbsp;&nbsp;&nbsp;Capstone REITs No.26 |  | 51536  | 40798  | 914  | (761)  | - | (761)  |
| &nbsp;&nbsp;&nbsp;JB Incheon-Bucheon REITS No.54 |  | 12639  | 5  | -  | (29) | - | (29) |
| &nbsp;&nbsp;&nbsp;Hankook Smart Real Asset Investment Trust No.3 |  | 18083  | 66  | -  | (4986)  | - | (4986)  |
| &nbsp;&nbsp;&nbsp;JB Hwaseong-Hadong REITs No.53 |  | 16034  | 5  | -  | (29) | - | (29) |
| &nbsp;&nbsp;&nbsp;KB Oaktree Trust No.3 |  | 29674  | 9  | 7074  | 2749  | - | 2749  |
| &nbsp;&nbsp;&nbsp;SH Real Estate Loan Investment Type Private Real Estate Investment Trust No.2 |  | 177733  | 143  | 12600 | 9210  | - | 9210  |
| &nbsp;&nbsp;&nbsp;Shinhan JigaeNamsan Road Private Special Asset Investment Trust |  | 159621  | 83  | 6948  | (2604) | - | (2604) |
| &nbsp;&nbsp;&nbsp;KB Distribution Private Real Estate 3-1 |  | 64261  | 50  | 5118  | 5118  | - | 5118  |
| &nbsp;&nbsp;&nbsp;Pacific Private Investment Trust No.49-1  |  | 40988  | 5671  | (1819) | (2852) | - | (2852) |
| &nbsp;&nbsp;&nbsp;KIWOOM Real estate private placement fund for normal investors No. 31  |  | 13403  | 17  | 1669  | 1604  | - | 1604  |
| &nbsp;&nbsp;&nbsp;RIFA Real estate private placement fund for normal investors No. 51  |  | 13461  | 33  | 153 | 140  | - | 140  |
| &nbsp;&nbsp;&nbsp;Shinhan-Kunicorn first Fund |  | 24603  | 7  | 7  | (527) | - | (527) |
| &nbsp;&nbsp;&nbsp;Shinhan-Quantum Startup Fund |  | 11519  | - | 61  | (246) | - | (246) |
| &nbsp;&nbsp;&nbsp;Shinhan Simone Fund Ⅰ |  | 8901  | 3  | 206  | (1098) | - | (1098) |
| &nbsp;&nbsp;&nbsp;Korea Investment develop seed Trust No.1 |  | 25407  | 45  | 3987  | 3881 | - | 3881 |
| &nbsp;&nbsp;&nbsp;Tiger Green alpha Trust No.29  |  | 31545  | 53  | 2345  | 2187 | - | 2187 |
| &nbsp;&nbsp;&nbsp;STIC ALT Global II Private Equity Fund |  | 45398  | 129  | 3073  | 2548  | - | 2548  |
| &nbsp;&nbsp;&nbsp;DDI LVC Master Real Estate Investment Trust Co., Ltd.  |  | 38594  | 8  | (60) | (5340) | - | (5340) |
| &nbsp;&nbsp;&nbsp;Reverent Frontier Private Equity Fund IV Specializing in Start-up Venture Business |  | 8758  | 75  | - | (5109) | - | (5109) |
| &nbsp;&nbsp;&nbsp;Find-Green New Deal 2nd Equity Fund |  | 19201  | 47  | 28  | (625) | - | (625) |
| &nbsp;&nbsp;&nbsp;ShinhanFitrin 1st Technology Business Investment Association  |  | 26243  | 68  | 2869  | 2445  | - | 2445  |
| &nbsp;&nbsp;&nbsp;Koramco Private Real Estate Fund 143 |  | 22055  | 44  | 15  | 7  | - | 7  |
| &nbsp;&nbsp;&nbsp;Korea Investment Top Mezzanine Private Real Estate Trust No.1 |  | 44605  | 165  | 3876 | 3845 | - | 3845 |
| &nbsp;&nbsp;&nbsp;LB YoungNam Logistics Private Trust No.40 |  | 38510  | 10  | 1794  | 1771 | - | 1771 |
| &nbsp;&nbsp;&nbsp;Shinhan-Cognitive Start-up Fund L.P. |  | 12844  | - | 4046  | 2657  | - | 2657  |
| &nbsp;&nbsp;&nbsp;Cornerstone J&M Fund I |  | 12849  | 47  | 1  | (278) | - | (278) |
| &nbsp;&nbsp;&nbsp;Logisvalley Shinhan REIT Co., Ltd.  |  | 78877  | 55563  | 3872  | (1031) | - | (1031) |
| &nbsp;&nbsp;&nbsp;Shinhan-G.N.Tech Smart Innovation Fund |  | 26008  | - | 1395  | 984  | - | 984  |

---

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**16. <u>Investments in associates (continued)</u>**

(c) Summarized financial information of major associates as of December 31, 2025 and 2024 is as follows (continued):

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
| **Investees** |  | **Asset** | **Liability** | **Operating**<br>**revenue** | **Net profit**<br>**(loss)** | **Other comprehen-**<br>**sive income**<br>**(loss)** | **Total comprehen-**<br>**sive income**<br>**(loss)** |
| &nbsp;&nbsp;&nbsp;Shinhan-Gene and New Normal First Mover Venture Investment Equity Fund 1st | W | 13899  | 383  | 8  | (420) | - | (420) |
| &nbsp;&nbsp;&nbsp;Korea Investment Green Newdeal Infra Trust No.1 |  | 57567  | 25  | -  | (441)  | - | (441)  |
| &nbsp;&nbsp;&nbsp;BTS 2nd Private Equity Fund |  | 39434  | 359  | 527  | 81  | - | 81  |
| &nbsp;&nbsp;&nbsp;NH-J&-IBKC Label Technology Fund |  | 35111  | 425  | 6  | (363) | - | (363) |
| &nbsp;&nbsp;&nbsp;Hanyang Time Mezzanine Fund |  | 8790  | - | 270  | (703) | - | (703) |
| &nbsp;&nbsp;&nbsp;Shinhan-Sneak Peek Bio&Healthcare Bounce Back Fund |  | 7831  | - | 815  | 810  | - | 810  |
| &nbsp;&nbsp;&nbsp;Shinhan-isquare Venture PEF 1 |  | 10655  | 63  | - | (372) | - | (372) |
| &nbsp;&nbsp;&nbsp;Aurum Goldrush ESG Private Fund No. 1 |  | 10629  | 16  | 332  | 316  | - | 316  |
| &nbsp;&nbsp;&nbsp;Capstone Develop Frontier Trust |  | 37644  | 81  | 4987  | 4906 | - | 4906 |
| &nbsp;&nbsp;&nbsp;Nextrade Co., Ltd. |  | 123829  | 2579  | (12517)  | (34855) | - | (34855) |
| &nbsp;&nbsp;&nbsp;IBKC-Behigh Fund 1st |  | 10629  | - | 26  | (198) | - | (198) |
| &nbsp;&nbsp;&nbsp;ON No.1 Private Equity Fund |  | 19991  | - | 1628  | 1369  | - | 1369  |
| &nbsp;&nbsp;&nbsp;Digital New Deal Kappa Private Equity Fund |  | 19178  | - | - | (396) | - | (396) |
| &nbsp;&nbsp;&nbsp;IBKCJS New Technology Fund No.1 |  | 8901  | - | 2523  | (3720) | - | (3720) |
| &nbsp;&nbsp;&nbsp;DS-Shinhan-JBWoori New Media New Technology Investment Fund No.1 |  | 46301  | - | 9  | (753) | - | (753) |
| &nbsp;&nbsp;&nbsp;VOGO Debt Strategy General Private Real Estate Investment Trust No. 18 |  | 39658  | 24  | 9617  | 5184  | - | 5184  |
| &nbsp;&nbsp;&nbsp;Koramco IPO REITS Mezzanine General Private Investment Trust No. 38  |  | 4390  | 19  | 244 | 224  | - | 224  |
| &nbsp;&nbsp;&nbsp;TogetherKorea Private Investment Trust No. 6  |  | 5425  | 1  | 150  | 147  | - | 147  |
| &nbsp;&nbsp;&nbsp;TogetherKorea Private Investment Trust No. 7  |  | 5425  | 1  | 150  | 147  | - | 147  |
| &nbsp;&nbsp;&nbsp;Kiwoom Core Industrial Technology Investment Fund No.3 |  | 12139  | - | 239  | 112  | - | 112  |
| &nbsp;&nbsp;&nbsp;Penture K-Content Investment Fund |  | 57553  | 337  | 505  | (1532) | - | (1532) |
| &nbsp;&nbsp;&nbsp;2023 Shinhan-JB Woori-Daeshin Listed Companies New Technology Fund  |  | 45013  | 119  | 43  | (3047) | - | (3047) |
| &nbsp;&nbsp;&nbsp;Hana Alternative Investment Kosmes PCBO General PEF No. 1 |  | 13852  | 15  | 1524  | 1469 | - | 1469 |
| &nbsp;&nbsp;&nbsp;Shinhan-Timefolio Bio Accelerator Fund |  | 24659  | 464  | 32  | (458) | - | (458) |
| &nbsp;&nbsp;&nbsp;Shinhan M&A-ESG Fund |  | 27661  | 1  | 137  | (1245) | - | (1245) |
| &nbsp;&nbsp;&nbsp;Shinhan Mid and Small-Sized Office Value-Added MO REIT Co., Ltd. |  | 103444  | 37314  | 21731  | 5701  | - | 5701  |
| &nbsp;&nbsp;&nbsp;KDBC meta-enter New Technology investment fund |  | 24375  | 2  | 1  | (513) | - | (513) |
| &nbsp;&nbsp;&nbsp;Shinhan Time Secondary Blind New Technology Investment Trust |  | 9762  | - | 133  | (246) | - | (246) |
| &nbsp;&nbsp;&nbsp;Shinhan DS Secondary Investment Fund |  | 5047  | 152  | (653)  | (9219) | - | (9219) |
| &nbsp;&nbsp;&nbsp;Shinhan-openwater pre-IPO Investment Trust 1 |  | 11337  | 5  | 1873  | 1386  | - | 1386  |
| &nbsp;&nbsp;&nbsp;Shinhan-CJ TechInnovation Fund 1st |  | 11488  | - | 66  | (422) | - | (422) |
| &nbsp;&nbsp;&nbsp;Shinhan-Eco Venture Fund 2nd |  | 9935  | 42  | - | (257) | - | (257) |

---

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**16. <u>Investments in associates (continued)</u>**

(c) Summarized financial information of major associates as of December 31, 2025 and 2024 is as follows (continued):

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
| **Investees** |  | **Asset** | **Liability** | **Operating**<br>**revenue** | **Net profit**<br>**(loss)** | **Other comprehen-**<br>**sive income**<br>**(loss)** | **Total comprehen-**<br>**sive income**<br>**(loss)** |
| &nbsp;&nbsp;&nbsp;Heungkuk-Shinhan the1st Visionary Technology Investment Trust no. 1 | W  | 16243  | - | 835  | 358  | - | 358  |
| &nbsp;&nbsp;&nbsp;Hantoo Shinhan Lake K-beauty Technology Investment Trust |  | 44701  | - | 1878  | 1284  | - | 1284  |
| &nbsp;&nbsp;&nbsp;Shinhan HB Wellness 1st Investment Trust |  | 10971  | - | 808  | 688  | - | 688  |
| &nbsp;&nbsp;&nbsp;Korea real Asset Fund No.3 |  | 58401  | 468  | -  | (2198)  | - | (2198)  |
| &nbsp;&nbsp;&nbsp;PineStreet Global Corporate FoF XIII-2 |  | 3748  | 5  | 173  | (47) | - | (47) |
| &nbsp;&nbsp;&nbsp;IGIS Yongsan Office General Private Real Estate Investment Trust 518 |  | 271916  | 206529  | 16409  | (614) | - | (614) |
| &nbsp;&nbsp;&nbsp;Samsung-dunamu Innovative IT Technology Investment Trust No. 1 |  | 16313  | - | 11  | (3419) | - | (3419) |
| &nbsp;&nbsp;&nbsp;Time Robotics New Technology Investment Trust |  | 12651  | - | 240  | 40  | - | 40  |
| &nbsp;&nbsp;&nbsp;Ascent-welcome Technology Investment Trust No.2 |  | 30597  | - | 16  | (1125) | - | (1125) |
| &nbsp;&nbsp;&nbsp;Newmain I funds |  | 25757  | 3  | 25313  | 20278  | - | 20278  |
| &nbsp;&nbsp;&nbsp;Igis General PE Real Estate Investment Trust 517-1 |  | 57074  | 346  | 11  | (1983) | - | (1983) |
| &nbsp;&nbsp;&nbsp;SH Ulmus M.P.E. Innovative Venture Fund 7 |  | 10612  | - | 250  | 112  | - | 112  |
| &nbsp;&nbsp;&nbsp;Consus Osansegyo No.2 |  | 16024  | 6  | 284  | 282  | - | 282  |
| &nbsp;&nbsp;&nbsp;Shinhan AIM Private Fund of Fund 9-B |  | 147033  | 70  | 25619  | 11888  | - | 11888  |
| &nbsp;&nbsp;&nbsp;Shinhan General Private Real Estate Investment Trust No.3 |  | 130731  | 2057  | 5557  | (491)  | - | (491)  |
| &nbsp;&nbsp;&nbsp;Paros Kosdaq Venture General Private Investment Trust No. 5  |  | 23074  | - | 916  | 2087  | - | 2087  |
| &nbsp;&nbsp;&nbsp;Happy Pet Life Care New Technology Investment Association No.2 |  | 9997  | - | - | (1523) | - | (1523) |
| &nbsp;&nbsp;&nbsp;Shinhan-soo secondary Fund |  | 21567  | - | 77  | (982) | - | (982) |
| &nbsp;&nbsp;&nbsp;TECHFIN RATINGS Co., Ltd. |  | 32223  | 4000 | 170 | (3089)  | - | (3089)  |
| &nbsp;&nbsp;&nbsp;Songpa biz cluster PFV Co., Ltd. |  | 909499  | 860724  | - | (1225) | - | (1225) |
| &nbsp;&nbsp;&nbsp;Planeta PTE LTD |  | 36088  | 2061  | 1677 | 3354  | - | 3354  |
| &nbsp;&nbsp;&nbsp;The E&Shinhan New Growth Up Fund |  | 7035  | - | 16  | (163) | - | (163) |
| &nbsp;&nbsp;&nbsp;Shinhan-GB FutureFlow Fund L.P. |  | 8951  | 99  | (98) | (801) | - | (801) |
| &nbsp;&nbsp;&nbsp;Credila Financial Services |  | 6597497  | 5362148  | 188931  | 36768  | - | 36768  |
| &nbsp;&nbsp;&nbsp;Shinhan Market-Frontier Fund Ⅲ |  | 29058  | - | 89  | (940) | - | (940) |
| &nbsp;&nbsp;&nbsp;DB IPO HighYield Fund 1 |  | 14974  | - | 970  | 846  | - | 846  |
| &nbsp;&nbsp;&nbsp;Exponential SQUARE Private Investment Trust No.1 |  | 10233  | 18  | 3365  | 220  | - | 220  |
| &nbsp;&nbsp;&nbsp;Fine North America Credit Private Mixed Asset Investment Trust 22 |  | 8610  | 769  | 1062  | 401  | - | 401  |
| &nbsp;&nbsp;&nbsp;IGIS Private Real Estate Investment No.454 |  | 14022  | 12  | 95  | 81  | - | 81  |
| &nbsp;&nbsp;&nbsp;IGIS Private Real Estate Investment No.462 |  | 6445  | 39  | 223  | 176  | - | 176  |
| &nbsp;&nbsp;&nbsp;BNW Recharge Private Equity Fund |  | 33918  | 133  | 2050  | 1755  | - | 1755  |

---

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**16. <u>Investments in associates (continued)</u>**

(c) Summarized financial information of major associates as of December 31, 2025 and 2024 is as follows (continued):

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
| **Investees** |  | **Asset** | **Liability** | **Operating**<br>**revenue** | **Net profit**<br>**(loss)** | **Other comprehen-**<br>**sive income**<br>**(loss)** | **Total comprehen-**<br>**sive income**<br>**(loss)** |
| &nbsp;&nbsp;&nbsp;United Partners Realasset Fund No.14 | W  | 30026  | 32  | 206  | (6) | - | (6) |
| &nbsp;&nbsp;&nbsp;Shinhan Securities HIFI Bond SafeR 2Y Private Fund No.12 |  | 1758651  | 1399238  | 78021  | 30627  | - | 30627  |
| &nbsp;&nbsp;&nbsp;Shinhan Securities HIFI Bond SafeR 2Y Private Fund No.13 |  | 1186406  | 945673  | 50564  | 19152  | - | 19152  |
| &nbsp;&nbsp;&nbsp;Shinhan Securities HIFI Bond SafeR 2Y Private Fund No.14 |  | 1086016  | 811622  | 37721  | 19563  | - | 19563  |
| &nbsp;&nbsp;&nbsp;Shinhan Securities HIFI Bond SafeR 2Y Private Fund No.15 |  | 1085298  | 810379  | 36610  | 18667  | - | 18667  |
| &nbsp;&nbsp;&nbsp;Shinhan Securities HIFI Bond SafeR 2Y Private Fund No.16 |  | 1084569  | 818607  | 42410  | 24595  | - | 24595  |
| &nbsp;&nbsp;&nbsp;Shinhan Securities HIFI Bond SafeR 2Y Private Fund No.17 |  | 525649  | 418113  | 2206  | (155) | - | (155) |
| &nbsp;&nbsp;&nbsp;Shinhan Securities HIFI Bond SafeR 2Y Private Fund No.18 |  | 1045465  | 826940  | (1922)  | (4905) | - | (4905) |
| &nbsp;&nbsp;&nbsp;Shinhan Securities HIFI Bond SafeR 2Y Private Fund No.19 |  | 523914  | 422896  | 5962  | 5122  | - | 5122  |
| &nbsp;&nbsp;&nbsp;SH US Buyback&High Dividend Security Feeder Investment Trust(H)[Equity] |  | 18870  | 109  | 7131  | 3895  | - | 3895  |

---

(\*) Excluded associates that are not accounted for using the equity method due to disposal or for which financial information was not available as of December 31, 2024.

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**16. <u>Investments in associates (continued)</u>**

(d) The reconciliation of the financial information to the carrying amount of its interests in the associates as of December 31, 2025 and 2024 is as follows:

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** |
| **Investees** |  | **Net assets**<br>**(a)** | **Ownership (%) (b)** | **Interests in the net assets**<br>**(a)\*(b)** | **Intra-group transactions** | **Others** | &nbsp;&nbsp;&nbsp;&nbsp;**Carrying**<br>**amount** |
| &nbsp;&nbsp;&nbsp;BNP Paribas Cardif Life Insurance | &nbsp;&nbsp;&nbsp;W | &nbsp;&nbsp;&nbsp;243378  | &nbsp;&nbsp;&nbsp;14.99  | &nbsp;&nbsp;&nbsp;36482  | &nbsp;&nbsp;&nbsp;(5) | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;36477  |
| &nbsp;&nbsp;&nbsp;Shinhan-Neoplux Energy Newbiz Fund |  | &nbsp;&nbsp;&nbsp;41130  | &nbsp;&nbsp;&nbsp;31.66  | &nbsp;&nbsp;&nbsp;13022  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;13022  |
| &nbsp;&nbsp;&nbsp;Shinhan-Albatross tech investment Fund |  | &nbsp;&nbsp;&nbsp;11331  | &nbsp;&nbsp;&nbsp;50.00  | &nbsp;&nbsp;&nbsp;5666  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;5666  |
| &nbsp;&nbsp;&nbsp;VOGO Debt Strategy Qualified IV Private |  | &nbsp;&nbsp;&nbsp;9189  | &nbsp;&nbsp;&nbsp;20.00  | &nbsp;&nbsp;&nbsp;1838  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;1838  |
| &nbsp;&nbsp;&nbsp;Shinhan-Midas Donga Secondary Fund |  | &nbsp;&nbsp;&nbsp;3417  | &nbsp;&nbsp;&nbsp;50.00  | &nbsp;&nbsp;&nbsp;1709  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;1709  |
| &nbsp;&nbsp;&nbsp;ShinHan – Soo Young Entrepreneur Investment Fund No.1 |  | &nbsp;&nbsp;&nbsp;7266  | &nbsp;&nbsp;&nbsp;24.00  | &nbsp;&nbsp;&nbsp;1744  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;1744  |
| &nbsp;&nbsp;&nbsp;Shinhan Praxis K-Growth Global Private Equity Fund |  | &nbsp;&nbsp;&nbsp;26080  | &nbsp;&nbsp;&nbsp;14.15  | &nbsp;&nbsp;&nbsp;3690  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;3690  |
| &nbsp;&nbsp;&nbsp;Kiwoom Milestone Professional Private Real Estate Trust 19 (\*6) |  | &nbsp;&nbsp;&nbsp;(36819) | &nbsp;&nbsp;&nbsp;50.00  | &nbsp;&nbsp;&nbsp;(18409) | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;18409  | &nbsp;&nbsp;&nbsp;- |
| &nbsp;&nbsp;&nbsp;Shinhan Global Healthcare Fund 1 (\*6) |  | &nbsp;&nbsp;&nbsp;(3469) | &nbsp;&nbsp;&nbsp;4.41  | &nbsp;&nbsp;&nbsp;(153) | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;153  | &nbsp;&nbsp;&nbsp;- |
| &nbsp;&nbsp;&nbsp;Koramco Europe Core Private Placement Real Estate Fund No.2-2 |  | &nbsp;&nbsp;&nbsp;12325  | &nbsp;&nbsp;&nbsp;44.02  | &nbsp;&nbsp;&nbsp;5426  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;5426  |
| &nbsp;&nbsp;&nbsp;Shinhan-Nvestor Liquidity Solution Fund |  | &nbsp;&nbsp;&nbsp;14964  | &nbsp;&nbsp;&nbsp;24.92  | &nbsp;&nbsp;&nbsp;3729  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;3729  |
| &nbsp;&nbsp;&nbsp;Shinhan AIM FoF Fund 1-A |  | &nbsp;&nbsp;&nbsp;2  | &nbsp;&nbsp;&nbsp;25.00  | &nbsp;&nbsp;&nbsp;1  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;1  |
| &nbsp;&nbsp;&nbsp;IGIS Global Credit Fund 150-1 |  | &nbsp;&nbsp;&nbsp;3973  | &nbsp;&nbsp;&nbsp;25.00  | &nbsp;&nbsp;&nbsp;993  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;993  |
| &nbsp;&nbsp;&nbsp;Nomura-Rifa Private Real Estate Investment Trust 19 (\*6) |  | &nbsp;&nbsp;&nbsp;(11282) | &nbsp;&nbsp;&nbsp;31.20  | &nbsp;&nbsp;&nbsp;(3520) | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;3520  | &nbsp;&nbsp;&nbsp;- |
| &nbsp;&nbsp;&nbsp;Genesis North America Power Company No.1 PEF |  | &nbsp;&nbsp;&nbsp;13846  | &nbsp;&nbsp;&nbsp;43.84  | &nbsp;&nbsp;&nbsp;6071  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;6071  |
| &nbsp;&nbsp;&nbsp;Korea Finance Security Co., Ltd. |  | &nbsp;&nbsp;&nbsp;25812  | &nbsp;&nbsp;&nbsp;14.91  | &nbsp;&nbsp;&nbsp;3849  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;3849  |
| &nbsp;&nbsp;&nbsp;MIEL Co., Ltd. (\*2) |  | &nbsp;&nbsp;&nbsp;(142) | &nbsp;&nbsp;&nbsp;28.77  | &nbsp;&nbsp;&nbsp;(41) | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;41  | &nbsp;&nbsp;&nbsp;- |
| &nbsp;&nbsp;&nbsp;AIP Transportation Specialized Privately Placed Fund Trust #1 |  | &nbsp;&nbsp;&nbsp;175703  | &nbsp;&nbsp;&nbsp;35.73  | &nbsp;&nbsp;&nbsp;62771  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;62771  |
| &nbsp;&nbsp;&nbsp;Kiwoom-Shinhan Innovation Fund I |  | &nbsp;&nbsp;&nbsp;15508  | &nbsp;&nbsp;&nbsp;50.00  | &nbsp;&nbsp;&nbsp;7754  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;7754  |
| Samchully Midstream Private Placement Special Asset Fund 5-4 |  | &nbsp;&nbsp;&nbsp;83873  | &nbsp;&nbsp;&nbsp;41.67  | &nbsp;&nbsp;&nbsp;34947  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;34947  |
| &nbsp;&nbsp;&nbsp;MK Ventures-K Clavis Growth Capital Venture Fund 1  |  | &nbsp;&nbsp;&nbsp;7  | &nbsp;&nbsp;&nbsp;26.67  | &nbsp;&nbsp;&nbsp;2  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;2  |
| &nbsp;&nbsp;&nbsp;Vestas Qualified Investors Private Real Estate Fund Investment Trust No.37 |  | &nbsp;&nbsp;&nbsp;53479  | &nbsp;&nbsp;&nbsp;60.00  | &nbsp;&nbsp;&nbsp;32087  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;32087  |
| &nbsp;&nbsp;&nbsp;Milestone Private Real Estate Fund 3  |  | &nbsp;&nbsp;&nbsp;66361  | &nbsp;&nbsp;&nbsp;32.06  | &nbsp;&nbsp;&nbsp;21276  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;21276  |
| &nbsp;&nbsp;&nbsp;Nomura-Rifa Private Real Estate Investment Trust 31  |  | &nbsp;&nbsp;&nbsp;19437  | &nbsp;&nbsp;&nbsp;31.31  | &nbsp;&nbsp;&nbsp;6086  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;6086  |
| &nbsp;&nbsp;&nbsp;FuturePlay-Shinhan TechInnovation Fund 1 |  | &nbsp;&nbsp;&nbsp;12604  | &nbsp;&nbsp;&nbsp;50.00  | &nbsp;&nbsp;&nbsp;6302  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;6302  |
| &nbsp;&nbsp;&nbsp;Vogo Realty Partners Private Real Estate Fund V |  | &nbsp;&nbsp;&nbsp;47464  | &nbsp;&nbsp;&nbsp;21.64  | &nbsp;&nbsp;&nbsp;10271  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;10271  |

---

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**16. <u>Investments in associates (continued)</u>**

(d) The reconciliation of the financial information to the carrying amount of its interests in the associates as of December 31, 2025 and 2024 is as follows (continued):

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** |
| **Investees** |  | **Net assets**<br>**(a)** | **Ownership (%) (b)** | **Interests in the net assets**<br>**(a)\*(b)** | **Intra-group transactions** | **Others** | &nbsp;&nbsp;&nbsp;&nbsp;**Carrying**<br>**amount** |
| &nbsp;&nbsp;&nbsp;Korea Credit Bureau  | &nbsp;&nbsp;&nbsp;W | &nbsp;&nbsp;&nbsp;112649  | &nbsp;&nbsp;&nbsp;9.00  | &nbsp;&nbsp;&nbsp;10138  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;10138  |
| &nbsp;&nbsp;&nbsp;Goduck Gangil1 PFV Co., Ltd. |  | &nbsp;&nbsp;&nbsp;6069  | &nbsp;&nbsp;&nbsp;1.04  | &nbsp;&nbsp;&nbsp;63  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;63  |
| &nbsp;&nbsp;&nbsp;SBC PFV Co., Ltd. (\*3) |  | &nbsp;&nbsp;&nbsp;179777  | &nbsp;&nbsp;&nbsp;25.00  | &nbsp;&nbsp;&nbsp;44944  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;(9990) | &nbsp;&nbsp;&nbsp;34954  |
| &nbsp;&nbsp;&nbsp;NH-amundi global infra private fund 16 |  | &nbsp;&nbsp;&nbsp;55599  | &nbsp;&nbsp;&nbsp;50.00  | &nbsp;&nbsp;&nbsp;27800  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;27800  |
| &nbsp;&nbsp;&nbsp;SH BNCT Professional Investment Type Private Special Asset Investment Trust |  | &nbsp;&nbsp;&nbsp;284142  | &nbsp;&nbsp;&nbsp;72.50  | &nbsp;&nbsp;&nbsp;206003  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;206003  |
| &nbsp;&nbsp;&nbsp;IGIS Real-estate Private Investment Trust No.33 |  | &nbsp;&nbsp;&nbsp;27972  | &nbsp;&nbsp;&nbsp;24.18  | &nbsp;&nbsp;&nbsp;6764  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;6764  |
| &nbsp;&nbsp;&nbsp;Fidelis Global Private Real Estate Trust No.2 |  | &nbsp;&nbsp;&nbsp;691  | &nbsp;&nbsp;&nbsp;79.63  | &nbsp;&nbsp;&nbsp;551  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;551  |
| &nbsp;&nbsp;&nbsp;AIP EURO PRIVATE REAL ESTATE TRUST No. 12 |  | &nbsp;&nbsp;&nbsp;58718  | &nbsp;&nbsp;&nbsp;28.70  | &nbsp;&nbsp;&nbsp;16852  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;16852  |
| &nbsp;&nbsp;&nbsp;Shinhan Global Healthcare Fund 2 (\*6) |  | &nbsp;&nbsp;&nbsp;(152) | &nbsp;&nbsp;&nbsp;13.68  | &nbsp;&nbsp;&nbsp;(21) | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;21  | &nbsp;&nbsp;&nbsp;- |
| &nbsp;&nbsp;&nbsp;Shinhan AIM Real Estate Fund No.1 |  | &nbsp;&nbsp;&nbsp;30954  | &nbsp;&nbsp;&nbsp;21.01  | &nbsp;&nbsp;&nbsp;6504  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;6504  |
| &nbsp;&nbsp;&nbsp;SH Daegu Green Power Cogeneration System Professional Investment Type Private Special Asset Investment Trust  |  | &nbsp;&nbsp;&nbsp;178354  | &nbsp;&nbsp;&nbsp;22.02  | &nbsp;&nbsp;&nbsp;39273  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;39273  |
| &nbsp;&nbsp;&nbsp;SH Sangju YC Expressway Professional Investment Type Private Special Asset Investment Trust |  | &nbsp;&nbsp;&nbsp;67769  | &nbsp;&nbsp;&nbsp;29.19  | &nbsp;&nbsp;&nbsp;19782  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;19782  |
| &nbsp;&nbsp;&nbsp;SH Global Infrastructure Professional Investment Type Private Special Asset Investment Trust No.7-2  |  | &nbsp;&nbsp;&nbsp;21940  | &nbsp;&nbsp;&nbsp;71.43  | &nbsp;&nbsp;&nbsp;15672  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;15672  |
| &nbsp;&nbsp;&nbsp;Korea Omega-Shinhan Project Fund I |  | &nbsp;&nbsp;&nbsp;10725  | &nbsp;&nbsp;&nbsp;50.00  | &nbsp;&nbsp;&nbsp;5363  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;5363  |
| &nbsp;&nbsp;&nbsp;Samsung SRA Real Estate Professional Private 45 |  | &nbsp;&nbsp;&nbsp;116124  | &nbsp;&nbsp;&nbsp;25.00  | &nbsp;&nbsp;&nbsp;29031  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;29031  |
| &nbsp;&nbsp;&nbsp;IBK Global New Renewable Energy Special Asset Professional Private2 |  | &nbsp;&nbsp;&nbsp;96767  | &nbsp;&nbsp;&nbsp;28.98  | &nbsp;&nbsp;&nbsp;28048  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;28048  |
| &nbsp;&nbsp;&nbsp;Kakao-Shinhan 1st TNYT Fund |  | &nbsp;&nbsp;&nbsp;48963  | &nbsp;&nbsp;&nbsp;48.62  | &nbsp;&nbsp;&nbsp;23806  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;23806  |
| &nbsp;&nbsp;&nbsp;Pacific Private Placement Real Estate Fund No.40 |  | &nbsp;&nbsp;&nbsp;77039  | &nbsp;&nbsp;&nbsp;24.73  | &nbsp;&nbsp;&nbsp;19052  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;19052  |
| &nbsp;&nbsp;&nbsp;LB Scotland Amazon Fulfillment Center Fund 29  |  | &nbsp;&nbsp;&nbsp;35288  | &nbsp;&nbsp;&nbsp;65.00  | &nbsp;&nbsp;&nbsp;22937  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;22937  |
| &nbsp;&nbsp;&nbsp;JR AMC Hungary Budapest Office Fund 16 |  | &nbsp;&nbsp;&nbsp;41173  | &nbsp;&nbsp;&nbsp;34.87  | &nbsp;&nbsp;&nbsp;14357  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;14357  |
| &nbsp;&nbsp;&nbsp;Gyeonggi-Neoplux Superman Fund |  | &nbsp;&nbsp;&nbsp;19336  | &nbsp;&nbsp;&nbsp;21.76  | &nbsp;&nbsp;&nbsp;4208  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;4208  |
| NewWave 6th Fund |  | &nbsp;&nbsp;&nbsp;32786  | &nbsp;&nbsp;&nbsp;30.00  | &nbsp;&nbsp;&nbsp;9836  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;9836  |
| &nbsp;&nbsp;&nbsp;Neoplux No.3 Private Equity Fund |  | &nbsp;&nbsp;&nbsp;102085  | &nbsp;&nbsp;&nbsp;10.00  | &nbsp;&nbsp;&nbsp;10209  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;10209  |
| &nbsp;&nbsp;&nbsp;PCC Amberstone Private Equity Fund I |  | &nbsp;&nbsp;&nbsp;36997  | &nbsp;&nbsp;&nbsp;21.67  | &nbsp;&nbsp;&nbsp;8017  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;8017  |
| &nbsp;&nbsp;&nbsp;KIAMCO POWERLOAN TRUST 4TH |  | &nbsp;&nbsp;&nbsp;98800  | &nbsp;&nbsp;&nbsp;47.37  | &nbsp;&nbsp;&nbsp;46800  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;46800  |

---

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**16. <u>Investments in associates (continued)</u>**

(d) The reconciliation of the financial information to the carrying amount of its interests in the associates as of December 31, 2025 and 2024 is as follows (continued):

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** |
| **Investees** |  | **Net assets**<br>**(a)** | **Ownership (%) (b)** | **Interests in the net assets**<br>**(a)\*(b)** | **Intra-group transactions** | **Others** | &nbsp;&nbsp;&nbsp;&nbsp;**Carrying**<br>**amount** |
| &nbsp;&nbsp;&nbsp;Mastern Opportunity Seeking Real Estate Fund II | &nbsp;&nbsp;&nbsp;W | &nbsp;&nbsp;&nbsp;5738  | &nbsp;&nbsp;&nbsp;20.00  | &nbsp;&nbsp;&nbsp;1148  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;1148  |
| &nbsp;&nbsp;&nbsp;Neoplux Market-Frontier Secondary Fund  |  | &nbsp;&nbsp;&nbsp;28177  | &nbsp;&nbsp;&nbsp;19.74  | &nbsp;&nbsp;&nbsp;5562  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;5562  |
| &nbsp;&nbsp;&nbsp;KIAMCO Vietnam Solar Special Asset Private Investment Trust |  | &nbsp;&nbsp;&nbsp;13803  | &nbsp;&nbsp;&nbsp;50.00  | &nbsp;&nbsp;&nbsp;6902  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;6902  |
| &nbsp;&nbsp;&nbsp;SHINHAN-NEO Core Industrial Technology Fund |  | &nbsp;&nbsp;&nbsp;14272  | &nbsp;&nbsp;&nbsp;49.75  | &nbsp;&nbsp;&nbsp;7100  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;7100  |
| &nbsp;&nbsp;&nbsp;SHBNPP Green New Deal Energy Professional Investment Type Private Special Asset Investment Trust No.2 |  | &nbsp;&nbsp;&nbsp;67195  | &nbsp;&nbsp;&nbsp;30.00  | &nbsp;&nbsp;&nbsp;20158  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;20158  |
| &nbsp;&nbsp;&nbsp;Eum Private Equity Fund No.7 |  | &nbsp;&nbsp;&nbsp;45404  | &nbsp;&nbsp;&nbsp;21.00  | &nbsp;&nbsp;&nbsp;9534  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;9534  |
| &nbsp;&nbsp;&nbsp;AJ-KOSNET Semicon One Venture Fund |  | &nbsp;&nbsp;&nbsp;14228  | &nbsp;&nbsp;&nbsp;22.22  | &nbsp;&nbsp;&nbsp;3161  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;3161  |
| &nbsp;&nbsp;&nbsp;Genesis Eco No.1 PEF |  | &nbsp;&nbsp;&nbsp;30240  | &nbsp;&nbsp;&nbsp;29.01  | &nbsp;&nbsp;&nbsp;8772  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;8772  |
| &nbsp;&nbsp;&nbsp;SHINHAN-NEO Market-Frontier 2nd Fund |  | &nbsp;&nbsp;&nbsp;57654  | &nbsp;&nbsp;&nbsp;42.70  | &nbsp;&nbsp;&nbsp;24618  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;24618  |
| &nbsp;&nbsp;&nbsp;Ulmus SHC innovation investment fund |  | &nbsp;&nbsp;&nbsp;23322  | &nbsp;&nbsp;&nbsp;24.04  | &nbsp;&nbsp;&nbsp;5607  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;5607  |
| &nbsp;&nbsp;&nbsp;T Core Industrial Technology 1st Venture PEF |  | &nbsp;&nbsp;&nbsp;9712  | &nbsp;&nbsp;&nbsp;31.47  | &nbsp;&nbsp;&nbsp;3056  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;3056  |
| &nbsp;&nbsp;&nbsp;TI First Property Private Investment Trust 1 |  | &nbsp;&nbsp;&nbsp;2251  | &nbsp;&nbsp;&nbsp;40.00  | &nbsp;&nbsp;&nbsp;900  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;900  |
| &nbsp;&nbsp;&nbsp;Kiwoom-Shinhan Innovation Fund 2 |  | &nbsp;&nbsp;&nbsp;29582  | &nbsp;&nbsp;&nbsp;42.86  | &nbsp;&nbsp;&nbsp;12679  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;12679  |
| &nbsp;&nbsp;&nbsp;ETRI Holdings-Shinhan 1st Unicorn Fund |  | &nbsp;&nbsp;&nbsp;8247  | &nbsp;&nbsp;&nbsp;50.00  | &nbsp;&nbsp;&nbsp;4124  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;4124  |
| &nbsp;&nbsp;&nbsp;AVES 1st Corporate Recovery Private Equity Fund |  | &nbsp;&nbsp;&nbsp;5904  | &nbsp;&nbsp;&nbsp;76.19  | &nbsp;&nbsp;&nbsp;4498  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;4498  |
| &nbsp;&nbsp;&nbsp;Reverent-Shinhan Vista Fund  |  | &nbsp;&nbsp;&nbsp;28061  | &nbsp;&nbsp;&nbsp;13.41  | &nbsp;&nbsp;&nbsp;3763  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;3763  |
| &nbsp;&nbsp;&nbsp;JS Shinhan Private Equity Fund  |  | &nbsp;&nbsp;&nbsp;162653  | &nbsp;&nbsp;&nbsp;3.85  | &nbsp;&nbsp;&nbsp;6262  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;6262  |
| &nbsp;&nbsp;&nbsp;Meta TB ESG Private Equity Fund I |  | &nbsp;&nbsp;&nbsp;20410  | &nbsp;&nbsp;&nbsp;27.40  | &nbsp;&nbsp;&nbsp;5592  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;5592  |
| &nbsp;&nbsp;&nbsp;Shinhan VC tomorrow venture fund 1 |  | &nbsp;&nbsp;&nbsp;258789  | &nbsp;&nbsp;&nbsp;39.62  | &nbsp;&nbsp;&nbsp;102540  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;102540  |
| &nbsp;&nbsp;&nbsp;Stonebridge-Shinhan Unicorn Secondary Fund  |  | &nbsp;&nbsp;&nbsp;50298  | &nbsp;&nbsp;&nbsp;26.01  | &nbsp;&nbsp;&nbsp;13082  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;13082  |
| &nbsp;&nbsp;&nbsp;Tres-Yujin Trust  |  | &nbsp;&nbsp;&nbsp;26291  | &nbsp;&nbsp;&nbsp;50.00  | &nbsp;&nbsp;&nbsp;13146  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;13146  |
| Capstone REITs No.26 |  | &nbsp;&nbsp;&nbsp;10137  | &nbsp;&nbsp;&nbsp;50.00  | &nbsp;&nbsp;&nbsp;5069  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;5069  |
| &nbsp;&nbsp;&nbsp;JB Incheon-Bucheon REITS No.54 |  | &nbsp;&nbsp;&nbsp;14718  | &nbsp;&nbsp;&nbsp;39.31  | &nbsp;&nbsp;&nbsp;5785  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;5785  |
| &nbsp;&nbsp;&nbsp;Hankook Smart Real Asset Investment Trust No.3 |  | &nbsp;&nbsp;&nbsp;6249  | &nbsp;&nbsp;&nbsp;33.33  | &nbsp;&nbsp;&nbsp;2083  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;2083  |
| &nbsp;&nbsp;&nbsp;JB Hwaseong-Hadong REITs No.53 |  | &nbsp;&nbsp;&nbsp;2556  | &nbsp;&nbsp;&nbsp;31.03  | &nbsp;&nbsp;&nbsp;793  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;793  |
| &nbsp;&nbsp;&nbsp;KB Oaktree Trust No.3 |  | &nbsp;&nbsp;&nbsp;27944  | &nbsp;&nbsp;&nbsp;33.33  | &nbsp;&nbsp;&nbsp;9314  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;9314  |
| &nbsp;&nbsp;&nbsp;KAI-The Square Fund 1 |  | &nbsp;&nbsp;&nbsp;23  | &nbsp;&nbsp;&nbsp;47.96  | &nbsp;&nbsp;&nbsp;11  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;11  |
| &nbsp;&nbsp;&nbsp;SH Real Estate Loan Investment Type Private Real Estate Investment Trust No.2 |  | &nbsp;&nbsp;&nbsp;106115  | &nbsp;&nbsp;&nbsp;29.73  | &nbsp;&nbsp;&nbsp;31548  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;31548  |
| &nbsp;&nbsp;&nbsp;Shinhan JigaeNamsan Road Private Special Asset Investment Trust |  | &nbsp;&nbsp;&nbsp;162157  | &nbsp;&nbsp;&nbsp;24.85  | &nbsp;&nbsp;&nbsp;40296  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;40296  |
| &nbsp;&nbsp;&nbsp;KB Distribution Private Real Estate 3-1 (\*6) |  | &nbsp;&nbsp;&nbsp;(98) | &nbsp;&nbsp;&nbsp;37.50  | &nbsp;&nbsp;&nbsp;(37) | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;37  | &nbsp;&nbsp;&nbsp;- |
| &nbsp;&nbsp;&nbsp;Pacific Private Investment Trust No.49-1  |  | &nbsp;&nbsp;&nbsp;46264  | &nbsp;&nbsp;&nbsp;79.28  | &nbsp;&nbsp;&nbsp;36678  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;36678  |
| &nbsp;&nbsp;&nbsp;KIWOOM Real estate private placement fund for normal investors No. 31 (\*6) |  | &nbsp;&nbsp;&nbsp;(73) | &nbsp;&nbsp;&nbsp;60.00  | &nbsp;&nbsp;&nbsp;(44) | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;44  | &nbsp;&nbsp;&nbsp;- |

---

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**16. <u>Investments in associates (continued)</u>**

(d) The reconciliation of the financial information to the carrying amount of its interests in the associates as of December 31, 2025 and 2024 is as follows (continued):

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** |
| **Investees** |  | **Net assets**<br>**(a)** | **Ownership (%) (b)** | **Interests in the net assets**<br>**(a)\*(b)** | **Intra-group transactions** | **Others** | &nbsp;&nbsp;&nbsp;&nbsp;**Carrying**<br>**amount** |
| &nbsp;&nbsp;&nbsp;RIFA Real estate private placement fund for normal investors No. 51 (\*6) | &nbsp;&nbsp;&nbsp;W | &nbsp;&nbsp;&nbsp;(28) | &nbsp;&nbsp;&nbsp;40.00  | &nbsp;&nbsp;&nbsp;(11) | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;11  | &nbsp;&nbsp;&nbsp;- |
| &nbsp;&nbsp;&nbsp;Shinhan-Kunicorn first Fund |  | &nbsp;&nbsp;&nbsp;20102  | &nbsp;&nbsp;&nbsp;38.31  | &nbsp;&nbsp;&nbsp;7701  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;7701  |
| &nbsp;&nbsp;&nbsp;Shinhan-Quantum Startup Fund |  | &nbsp;&nbsp;&nbsp;11281  | &nbsp;&nbsp;&nbsp;49.18  | &nbsp;&nbsp;&nbsp;5548  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;5548  |
| &nbsp;&nbsp;&nbsp;Shinhan Simone Fund Ⅰ |  | &nbsp;&nbsp;&nbsp;3890  | &nbsp;&nbsp;&nbsp;38.46  | &nbsp;&nbsp;&nbsp;1496  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;1496  |
| &nbsp;&nbsp;&nbsp;Korea Investment develop seed Trust No.1 |  | &nbsp;&nbsp;&nbsp;26825  | &nbsp;&nbsp;&nbsp;40.00  | &nbsp;&nbsp;&nbsp;10730  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;10730  |
| &nbsp;&nbsp;&nbsp;STIC ALT Global II Private Equity Fund |  | &nbsp;&nbsp;&nbsp;45046  | &nbsp;&nbsp;&nbsp;21.74  | &nbsp;&nbsp;&nbsp;9793  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;9793  |
| &nbsp;&nbsp;&nbsp;DDI LVC Master Real Estate Investment Trust Co., Ltd. (\*1) |  | &nbsp;&nbsp;&nbsp;30982  | &nbsp;&nbsp;&nbsp;15.00  | &nbsp;&nbsp;&nbsp;4647  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;12  | &nbsp;&nbsp;&nbsp;4659  |
| Find-Green New Deal 2nd Equity Fund |  | &nbsp;&nbsp;&nbsp;20937  | &nbsp;&nbsp;&nbsp;22.57  | &nbsp;&nbsp;&nbsp;4726  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;4726  |
| &nbsp;&nbsp;&nbsp;ShinhanFitrin 1st Technology Business Investment Association  |  | &nbsp;&nbsp;&nbsp;24332  | &nbsp;&nbsp;&nbsp;16.17  | &nbsp;&nbsp;&nbsp;3934  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;3934  |
| &nbsp;&nbsp;&nbsp;Koramco Private Real Estate Fund 143 |  | &nbsp;&nbsp;&nbsp;26706  | &nbsp;&nbsp;&nbsp;30.30  | &nbsp;&nbsp;&nbsp;8092  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;8092  |
| &nbsp;&nbsp;&nbsp;Korea Investment Top Mezzanine Private Real Estate Trust No.1 |  | &nbsp;&nbsp;&nbsp;13680  | &nbsp;&nbsp;&nbsp;22.22  | &nbsp;&nbsp;&nbsp;3040  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;3040  |
| &nbsp;&nbsp;&nbsp;LB YoungNam Logistics Private Trust No.40 |  | &nbsp;&nbsp;&nbsp;38847  | &nbsp;&nbsp;&nbsp;25.00  | &nbsp;&nbsp;&nbsp;9712  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;9712  |
| &nbsp;&nbsp;&nbsp;Shinhan-Cognitive Start-up Fund L.P. |  | &nbsp;&nbsp;&nbsp;12656  | &nbsp;&nbsp;&nbsp;32.77  | &nbsp;&nbsp;&nbsp;4147  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;4147  |
| &nbsp;&nbsp;&nbsp;Logisvalley Shinhan REIT Co., Ltd. (\*1) |  | &nbsp;&nbsp;&nbsp;22605  | &nbsp;&nbsp;&nbsp;20.27  | &nbsp;&nbsp;&nbsp;4582  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;(1337) | &nbsp;&nbsp;&nbsp;3245  |
| &nbsp;&nbsp;&nbsp;Shinhan-G.N.Tech Smart Innovation Fund |  | &nbsp;&nbsp;&nbsp;21948  | &nbsp;&nbsp;&nbsp;50.00  | &nbsp;&nbsp;&nbsp;10974  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;10974  |
| &nbsp;&nbsp;&nbsp;Shinhan-Gene and New Normal First Mover Venture Investment Equity Fund 1st |  | &nbsp;&nbsp;&nbsp;16384  | &nbsp;&nbsp;&nbsp;50.00  | &nbsp;&nbsp;&nbsp;8192  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;8192  |
| &nbsp;&nbsp;&nbsp;Korea Investment Green Newdeal Infra Trust No.1 |  | &nbsp;&nbsp;&nbsp;62350  | &nbsp;&nbsp;&nbsp;27.97  | &nbsp;&nbsp;&nbsp;17439  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;17439  |
| &nbsp;&nbsp;&nbsp;BTS 2nd Private Equity Fund |  | &nbsp;&nbsp;&nbsp;42069  | &nbsp;&nbsp;&nbsp;26.00  | &nbsp;&nbsp;&nbsp;10938  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;10938  |
| &nbsp;&nbsp;&nbsp;NH-J&-IBKC Label Technology Fund |  | &nbsp;&nbsp;&nbsp;29778  | &nbsp;&nbsp;&nbsp;27.81  | &nbsp;&nbsp;&nbsp;8281  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;8281  |
| &nbsp;&nbsp;&nbsp;Shinhan-Sneak Peek Bio&Healthcare Bounce Back Fund |  | &nbsp;&nbsp;&nbsp;7905  | &nbsp;&nbsp;&nbsp;50.00  | &nbsp;&nbsp;&nbsp;3953  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;3953  |
| &nbsp;&nbsp;&nbsp;Shinhan-isquare Venture PEF 1 |  | &nbsp;&nbsp;&nbsp;8254  | &nbsp;&nbsp;&nbsp;40.00  | &nbsp;&nbsp;&nbsp;3301  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;3301  |
| Aurum Goldrush ESG Private Fund No. 1 |  | &nbsp;&nbsp;&nbsp;9070  | &nbsp;&nbsp;&nbsp;28.33  | &nbsp;&nbsp;&nbsp;2569  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;2569  |
| &nbsp;&nbsp;&nbsp;Nextrade Co., Ltd. |  | &nbsp;&nbsp;&nbsp;121250  | &nbsp;&nbsp;&nbsp;8.00  | &nbsp;&nbsp;&nbsp;9700  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;9700  |
| &nbsp;&nbsp;&nbsp;IBKC-Behigh Fund 1st |  | &nbsp;&nbsp;&nbsp;10414  | &nbsp;&nbsp;&nbsp;29.73  | &nbsp;&nbsp;&nbsp;3096  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;3096  |
| &nbsp;&nbsp;&nbsp;DS-Shinhan-JBWoori New Media New Technology Investment Fund No.1 |  | &nbsp;&nbsp;&nbsp;34374  | &nbsp;&nbsp;&nbsp;20.83  | &nbsp;&nbsp;&nbsp;7160  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;7160  |
| &nbsp;&nbsp;&nbsp;VOGO Debt Strategy General Private Real Estate Investment Trust No. 18 |  | &nbsp;&nbsp;&nbsp;35537  | &nbsp;&nbsp;&nbsp;28.57  | &nbsp;&nbsp;&nbsp;10153  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;10153  |
| &nbsp;&nbsp;&nbsp;Koramco IPO REITS Mezzanine General Private Investment Trust No. 38  |  | &nbsp;&nbsp;&nbsp;4710  | &nbsp;&nbsp;&nbsp;75.00  | &nbsp;&nbsp;&nbsp;3533  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;3533  |
| &nbsp;&nbsp;&nbsp;TogetherKorea Private Investment Trust No. 6  |  | &nbsp;&nbsp;&nbsp;5541  | &nbsp;&nbsp;&nbsp;99.98  | &nbsp;&nbsp;&nbsp;5540  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;5540  |
| &nbsp;&nbsp;&nbsp;TogetherKorea Private Investment Trust No. 7  |  | &nbsp;&nbsp;&nbsp;5541  | &nbsp;&nbsp;&nbsp;99.98  | &nbsp;&nbsp;&nbsp;5540  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;5540  |

---

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**16. <u>Investments in associates (continued)</u>**

(d) The reconciliation of the financial information to the carrying amount of its interests in the associates as of December 31, 2025 and 2024 is as follows (continued):

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** |
| **Investees** |  | **Net assets**<br>**(a)** | **Ownership (%) (b)** | **Interests in the net assets**<br>**(a)\*(b)** | **Intra-group transactions** | **Others** | &nbsp;&nbsp;&nbsp;&nbsp;**Carrying**<br>**amount** |
| &nbsp;&nbsp;&nbsp;Kiwoom Core Industrial Technology Investment Fund No.3 | &nbsp;&nbsp;&nbsp;W | &nbsp;&nbsp;&nbsp;12014  | &nbsp;&nbsp;&nbsp;34.75  | &nbsp;&nbsp;&nbsp;4175  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;4175  |
| &nbsp;&nbsp;&nbsp;Penture K-Content Investment Fund |  | &nbsp;&nbsp;&nbsp;81282  | &nbsp;&nbsp;&nbsp;19.78  | &nbsp;&nbsp;&nbsp;16080  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;16080  |
| &nbsp;&nbsp;&nbsp;2023 Shinhan-JB Woori-Daeshin Listed Companies New Technology Fund  |  | &nbsp;&nbsp;&nbsp;35776  | &nbsp;&nbsp;&nbsp;30.00  | &nbsp;&nbsp;&nbsp;10733  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;10733  |
| &nbsp;&nbsp;&nbsp;Hana Alternative Investment Kosmes PCBO General PEF No. 1 |  | &nbsp;&nbsp;&nbsp;14263  | &nbsp;&nbsp;&nbsp;37.04  | &nbsp;&nbsp;&nbsp;5283  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;5283  |
| &nbsp;&nbsp;&nbsp;Shinhan-Timefolio Bio Accelerator Fund |  | &nbsp;&nbsp;&nbsp;35362  | &nbsp;&nbsp;&nbsp;48.39  | &nbsp;&nbsp;&nbsp;17112  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;17112  |
| &nbsp;&nbsp;&nbsp;Shinhan M&A-ESG Fund |  | &nbsp;&nbsp;&nbsp;38799  | &nbsp;&nbsp;&nbsp;23.33  | &nbsp;&nbsp;&nbsp;9053  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;9053  |
| &nbsp;&nbsp;&nbsp;Shinhan Mid and Small-Sized Office Value-Added MO REIT Co., Ltd. |  | &nbsp;&nbsp;&nbsp;68748  | &nbsp;&nbsp;&nbsp;28.43  | &nbsp;&nbsp;&nbsp;19548  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;19548  |
| &nbsp;&nbsp;&nbsp;Shinhan Time Secondary Blind New Technology Investment Trust |  | &nbsp;&nbsp;&nbsp;23448  | &nbsp;&nbsp;&nbsp;47.50  | &nbsp;&nbsp;&nbsp;11138  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;11138  |
| &nbsp;&nbsp;&nbsp;Shinhan DS Secondary Investment Fund |  | &nbsp;&nbsp;&nbsp;62568  | &nbsp;&nbsp;&nbsp;49.83  | &nbsp;&nbsp;&nbsp;31178  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;31178  |
| &nbsp;&nbsp;&nbsp;Shinhan-openwater pre-IPO Investment Trust 1 |  | &nbsp;&nbsp;&nbsp;13132  | &nbsp;&nbsp;&nbsp;50.00  | &nbsp;&nbsp;&nbsp;6566  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;6566  |
| &nbsp;&nbsp;&nbsp;Shinhan-CJ TechInnovation Fund 1st |  | &nbsp;&nbsp;&nbsp;11053  | &nbsp;&nbsp;&nbsp;40.00  | &nbsp;&nbsp;&nbsp;4421  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;4421  |
| &nbsp;&nbsp;&nbsp;Shinhan-Eco Venture Fund 2nd |  | &nbsp;&nbsp;&nbsp;8959  | &nbsp;&nbsp;&nbsp;40.00  | &nbsp;&nbsp;&nbsp;3584  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;3584  |
| &nbsp;&nbsp;&nbsp;Heungkuk-Shinhan the1st Visionary Technology Investment Trust no. 1 |  | &nbsp;&nbsp;&nbsp;17637  | &nbsp;&nbsp;&nbsp;40.00  | &nbsp;&nbsp;&nbsp;7055  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;7055  |
| &nbsp;&nbsp;&nbsp;Hantoo Shinhan Lake K-beauty Technology Investment Trust |  | &nbsp;&nbsp;&nbsp;30811  | &nbsp;&nbsp;&nbsp;22.96  | &nbsp;&nbsp;&nbsp;7074  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;7074  |
| &nbsp;&nbsp;&nbsp;Shinhan HB Wellness 1st Investment Trust |  | &nbsp;&nbsp;&nbsp;11722  | &nbsp;&nbsp;&nbsp;48.54  | &nbsp;&nbsp;&nbsp;5690  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;5690  |
| &nbsp;&nbsp;&nbsp;Korea real Asset Fund No.3 |  | &nbsp;&nbsp;&nbsp;65384  | &nbsp;&nbsp;&nbsp;28.57  | &nbsp;&nbsp;&nbsp;18680  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;18680  |
| &nbsp;&nbsp;&nbsp;Timefolio Tech Fund I |  | &nbsp;&nbsp;&nbsp;14348  | &nbsp;&nbsp;&nbsp;21.18  | &nbsp;&nbsp;&nbsp;3039  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;3039  |
| &nbsp;&nbsp;&nbsp;PineStreet Global Corporate FoF XIII-2 |  | &nbsp;&nbsp;&nbsp;8142  | &nbsp;&nbsp;&nbsp;100.00  | &nbsp;&nbsp;&nbsp;8142  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;8142  |
| &nbsp;&nbsp;&nbsp;IGIS Yongsan Office General Private Real Estate Investment Trust 518 |  | &nbsp;&nbsp;&nbsp;53419  | &nbsp;&nbsp;&nbsp;26.22  | &nbsp;&nbsp;&nbsp;14006  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;14006  |
| &nbsp;&nbsp;&nbsp;SH K-REITs Infra Real Estate Investment Trust (FoFs) |  | &nbsp;&nbsp;&nbsp;13655  | &nbsp;&nbsp;&nbsp;23.30  | &nbsp;&nbsp;&nbsp;3182  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;3182  |
| &nbsp;&nbsp;&nbsp;Samsung-dunamu Innovative IT Technology Investment Trust No. 1 |  | &nbsp;&nbsp;&nbsp;17420  | &nbsp;&nbsp;&nbsp;22.99  | &nbsp;&nbsp;&nbsp;4005  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;4005  |
| &nbsp;&nbsp;&nbsp;Time Robotics New Technology Investment Trust |  | &nbsp;&nbsp;&nbsp;12158  | &nbsp;&nbsp;&nbsp;29.86  | &nbsp;&nbsp;&nbsp;3630  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;3630  |
| &nbsp;&nbsp;&nbsp;Ascent-welcome Technology Investment Trust No.2 |  | &nbsp;&nbsp;&nbsp;25688  | &nbsp;&nbsp;&nbsp;27.65  | &nbsp;&nbsp;&nbsp;7103  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;7103  |
| &nbsp;&nbsp;&nbsp;Igis General PE Real Estate Investment Trust 517-1 |  | &nbsp;&nbsp;&nbsp;57298  | &nbsp;&nbsp;&nbsp;96.71  | &nbsp;&nbsp;&nbsp;55414  | &nbsp;&nbsp;&nbsp;(439) | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;54975  |
| &nbsp;&nbsp;&nbsp;SH Ulmus M.P.E. Innovative Venture Fund 7 |  | &nbsp;&nbsp;&nbsp;10268  | &nbsp;&nbsp;&nbsp;28.57  | &nbsp;&nbsp;&nbsp;2933  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;2933  |
| &nbsp;&nbsp;&nbsp;Consus Osansegyo No.2 |  | &nbsp;&nbsp;&nbsp;16018  | &nbsp;&nbsp;&nbsp;50.00  | &nbsp;&nbsp;&nbsp;8009  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;8009  |
| &nbsp;&nbsp;&nbsp;Shinhan AIM Private Fund of Fund 9-B |  | &nbsp;&nbsp;&nbsp;174384  | &nbsp;&nbsp;&nbsp;25.00  | &nbsp;&nbsp;&nbsp;43596  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;43596  |
| &nbsp;&nbsp;&nbsp;Shinhan General Private Real Estate Investment Trust No.3 |  | &nbsp;&nbsp;&nbsp;141600  | &nbsp;&nbsp;&nbsp;20.75  | &nbsp;&nbsp;&nbsp;29389  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;29389  |
| &nbsp;&nbsp;&nbsp;Paros Kosdaq Venture General Private Investment Trust No. 5  |  | &nbsp;&nbsp;&nbsp;12352  | &nbsp;&nbsp;&nbsp;29.45  | &nbsp;&nbsp;&nbsp;3638  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;3638  |

---

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**16. <u>Investments in associates (continued)</u>**

(d) The reconciliation of the financial information to the carrying amount of its interests in the associates as of December 31, 2025 and 2024 is as follows (continued):

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** |
| **Investees** |  | **Net assets**<br>**(a)** | **Ownership (%) (b)** | **Interests in the net assets**<br>**(a)\*(b)** | **Intra-group transactions** | **Others** | &nbsp;&nbsp;&nbsp;&nbsp;**Carrying**<br>**amount** |
| &nbsp;&nbsp;&nbsp;Shinhan-soo secondary Fund | &nbsp;&nbsp;&nbsp;W | &nbsp;&nbsp;&nbsp;22475  | &nbsp;&nbsp;&nbsp;77.61 | &nbsp;&nbsp;&nbsp;17442  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;17442  |
| &nbsp;&nbsp;&nbsp;TECHFIN RATINGS Co., Ltd. (\*4) |  | &nbsp;&nbsp;&nbsp;22511  | &nbsp;&nbsp;&nbsp;45.00  | &nbsp;&nbsp;&nbsp;10130  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;12910  | &nbsp;&nbsp;&nbsp;23040  |
| &nbsp;&nbsp;&nbsp;Songpa biz cluster PFV Co., Ltd. |  | &nbsp;&nbsp;&nbsp;47180  | &nbsp;&nbsp;&nbsp;27.40  | &nbsp;&nbsp;&nbsp;12927  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;12927  |
| &nbsp;&nbsp;&nbsp;Planeta PTE LTD |  | &nbsp;&nbsp;&nbsp;36720  | &nbsp;&nbsp;&nbsp;33.33  | &nbsp;&nbsp;&nbsp;12239  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;12239  |
| &nbsp;&nbsp;&nbsp;The E&Shinhan New Growth Up Fund |  | &nbsp;&nbsp;&nbsp;14992  | &nbsp;&nbsp;&nbsp;50.00  | &nbsp;&nbsp;&nbsp;7496  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;7496  |
| &nbsp;&nbsp;&nbsp;HHR Special Situation Real Estate Private Investment Trust No. 13 |  | &nbsp;&nbsp;&nbsp;16081  | &nbsp;&nbsp;&nbsp;20.00  | &nbsp;&nbsp;&nbsp;3216  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;3216  |
| &nbsp;&nbsp;&nbsp;Shinhan-GB FutureFlow Fund L.P. |  | &nbsp;&nbsp;&nbsp;16165  | &nbsp;&nbsp;&nbsp;50.00  | &nbsp;&nbsp;&nbsp;8082  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;8082  |
| &nbsp;&nbsp;&nbsp;Credila Financial Services (\*4) |  | &nbsp;&nbsp;&nbsp;1472923  | &nbsp;&nbsp;&nbsp;10.06  | &nbsp;&nbsp;&nbsp;148176  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;117638  | &nbsp;&nbsp;&nbsp;265814  |
| &nbsp;&nbsp;&nbsp;Shinhan-DS Mezzanine Fund 1 |  | &nbsp;&nbsp;&nbsp;24137  | &nbsp;&nbsp;&nbsp;15.09  | &nbsp;&nbsp;&nbsp;3643  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;3643  |
| &nbsp;&nbsp;&nbsp;Shinhan Time BM sobujang Fund |  | &nbsp;&nbsp;&nbsp;11462  | &nbsp;&nbsp;&nbsp;29.41  | &nbsp;&nbsp;&nbsp;3371  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;3371  |
| &nbsp;&nbsp;&nbsp;Tigris Fund No. 58 |  | &nbsp;&nbsp;&nbsp;18286  | &nbsp;&nbsp;&nbsp;20.83  | &nbsp;&nbsp;&nbsp;3809  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;3809  |
| &nbsp;&nbsp;&nbsp;Shinhan Market-Frontier Fund Ⅲ |  | &nbsp;&nbsp;&nbsp;51059  | &nbsp;&nbsp;&nbsp;44.02  | &nbsp;&nbsp;&nbsp;22476  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;22476  |
| &nbsp;&nbsp;&nbsp;Fine North America Credit Private Mixed Asset Investment Trust 22 |  | &nbsp;&nbsp;&nbsp;10000  | &nbsp;&nbsp;&nbsp;58.82  | &nbsp;&nbsp;&nbsp;5883  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;5883  |
| &nbsp;&nbsp;&nbsp;IGIS Private Real Estate Investment No.454 |  | &nbsp;&nbsp;&nbsp;13989  | &nbsp;&nbsp;&nbsp;24.04  | &nbsp;&nbsp;&nbsp;3362  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;3362  |
| &nbsp;&nbsp;&nbsp;IGIS Private Real Estate Investment No.462 |  | &nbsp;&nbsp;&nbsp;6325  | &nbsp;&nbsp;&nbsp;69.20  | &nbsp;&nbsp;&nbsp;4377  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;4377  |
| &nbsp;&nbsp;&nbsp;BNW Recharge Private Equity Fund |  | &nbsp;&nbsp;&nbsp;21213  | &nbsp;&nbsp;&nbsp;21.13  | &nbsp;&nbsp;&nbsp;4482  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;4482  |
| &nbsp;&nbsp;&nbsp;United Partners Realasset Fund No.14 |  | &nbsp;&nbsp;&nbsp;30207  | &nbsp;&nbsp;&nbsp;33.33  | &nbsp;&nbsp;&nbsp;10068  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;10068  |
| &nbsp;&nbsp;&nbsp;Shinhan Securities HIFI Bond SafeR 2Y Private Fund No.14 |  | &nbsp;&nbsp;&nbsp;213826  | &nbsp;&nbsp;&nbsp;7.67  | &nbsp;&nbsp;&nbsp;16396  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;16396  |
| &nbsp;&nbsp;&nbsp;Shinhan Securities HIFI Bond SafeR 2Y Private Fund No.15 |  | &nbsp;&nbsp;&nbsp;203527  | &nbsp;&nbsp;&nbsp;7.79  | &nbsp;&nbsp;&nbsp;15854  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;15854  |
| &nbsp;&nbsp;&nbsp;Shinhan Securities HIFI Bond SafeR 2Y Private Fund No.16 |  | &nbsp;&nbsp;&nbsp;208225  | &nbsp;&nbsp;&nbsp;7.67  | &nbsp;&nbsp;&nbsp;15977  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;15977  |
| &nbsp;&nbsp;&nbsp;Shinhan Securities HIFI Bond SafeR 2Y Private Fund No.17 |  | &nbsp;&nbsp;&nbsp;97622  | &nbsp;&nbsp;&nbsp;7.40  | &nbsp;&nbsp;&nbsp;7225  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;7225  |
| &nbsp;&nbsp;&nbsp;Shinhan Securities HIFI Bond SafeR 2Y Private Fund No.18 |  | &nbsp;&nbsp;&nbsp;232851  | &nbsp;&nbsp;&nbsp;6.39  | &nbsp;&nbsp;&nbsp;14873  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;14873  |
| &nbsp;&nbsp;&nbsp;Shinhan Securities HIFI Bond SafeR 2Y Private Fund No.19 |  | &nbsp;&nbsp;&nbsp;115578  | &nbsp;&nbsp;&nbsp;6.55  | &nbsp;&nbsp;&nbsp;7567  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;7567  |
| &nbsp;&nbsp;&nbsp;SH US Buyback&High Dividend Security Feeder Investment Trust(H)[Equity] |  | &nbsp;&nbsp;&nbsp;22041  | &nbsp;&nbsp;&nbsp;19.91  | &nbsp;&nbsp;&nbsp;4388  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;4388  |
| &nbsp;&nbsp;&nbsp;SH Prestige High Dividend Security Feeder No.1[Equity] |  | &nbsp;&nbsp;&nbsp;28304  | &nbsp;&nbsp;&nbsp;23.92  | &nbsp;&nbsp;&nbsp;6770  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;6770  |
| &nbsp;&nbsp;&nbsp;IGIS Real Estate General Private Feeder Investment Company No.562 (\*5) |  | &nbsp;&nbsp;&nbsp;24256  | &nbsp;&nbsp;&nbsp;88.46  | &nbsp;&nbsp;&nbsp;21457  | &nbsp;&nbsp;&nbsp;(264) | &nbsp;&nbsp;&nbsp;25  | &nbsp;&nbsp;&nbsp;21218  |
| &nbsp;&nbsp;&nbsp;Shinhan Securities HIFI Bond SafeR 2Y Private Fund No.21 |  | &nbsp;&nbsp;&nbsp;295465  | &nbsp;&nbsp;&nbsp;4.97  | &nbsp;&nbsp;&nbsp;14689  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;14689  |
| &nbsp;&nbsp;&nbsp;Shinhan Securities HIFI Bond SafeR 2Y Private Fund No.22 |  | &nbsp;&nbsp;&nbsp;310556  | &nbsp;&nbsp;&nbsp;4.97  | &nbsp;&nbsp;&nbsp;15439  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;15439  |
| &nbsp;&nbsp;&nbsp;Shinhan Securities HIFI Bond SafeR 2Y Private Fund No.23 |  | &nbsp;&nbsp;&nbsp;292745  | &nbsp;&nbsp;&nbsp;4.97  | &nbsp;&nbsp;&nbsp;14554  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;14554  |
| &nbsp;&nbsp;&nbsp;Finflow (\*1) |  | &nbsp;&nbsp;&nbsp;43416  | &nbsp;&nbsp;&nbsp;15.00  | &nbsp;&nbsp;&nbsp;6512  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;526  | &nbsp;&nbsp;&nbsp;7038  |
| &nbsp;&nbsp;&nbsp;Fireant Media and Digital Service Joint Stock Company |  | &nbsp;&nbsp;&nbsp;26730  | &nbsp;&nbsp;&nbsp;17.66  | &nbsp;&nbsp;&nbsp;4721  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;4721  |
| &nbsp;&nbsp;&nbsp;ST EIP Holdings Inc. |  | &nbsp;&nbsp;&nbsp;108445  | &nbsp;&nbsp;&nbsp;49.00  | &nbsp;&nbsp;&nbsp;53138  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;53138  |

---

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**16. <u>Investments in associates (continued)</u>**

(d) The reconciliation of the financial information to the carrying amount of its interests in the associates as of December 31, 2025 and 2024 is as follows (continued):

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** |
| **Investees** |  | **Net assets**<br>**(a)** | **Ownership (%) (b)** | **Interests in the net assets**<br>**(a)\*(b)** | **Intra-group transactions** | **Others** | &nbsp;&nbsp;&nbsp;&nbsp;**Carrying**<br>**amount** |
| &nbsp;&nbsp;&nbsp;AMP Capital Global Infrastructure Fund II B L | &nbsp;&nbsp;&nbsp;W | &nbsp;&nbsp;&nbsp;1538156  | &nbsp;&nbsp;&nbsp;1.50 | &nbsp;&nbsp;&nbsp;23072  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;23072  |
| &nbsp;&nbsp;&nbsp;Post CR REITS No.1 |  | &nbsp;&nbsp;&nbsp;5000  | &nbsp;&nbsp;&nbsp;70.00 | &nbsp;&nbsp;&nbsp;3500  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;3500  |
| &nbsp;&nbsp;&nbsp;SH US Long Term Treasury Plus Security Feeder Investment Trust(H)[Bond-FoFs] |  | &nbsp;&nbsp;&nbsp;20313  | &nbsp;&nbsp;&nbsp;23.30 | &nbsp;&nbsp;&nbsp;4733  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;4733  |

---

(\*1) Others represent the adjustments of fair value when acquired.

(\*2) Others represent fair value adjustment amounts recognized at the time of acquisition and cumulative losses that were not recognized due to the suspension of equity method accounting after the carrying amount of the investment account was reduced to zero as a result of accumulated deficits.

(\*3) Others represent adjustments resulting from the equity method not being applied to non-voting preferred shares issued by the investee.

(\*4) Others represent goodwill recognized at the time of acquisition.

(\*5) Others represent changes between the financial statements used for the external fair value valuation and those as of the end of the reporting period.

(\*6) Others represent cumulative unrecognized losses arising from the suspension of equity method accounting after the carrying amount of the investment account was reduced to zero due to accumulated deficits.

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**16. <u>Investments in associates (continued)</u>**

(d) The reconciliation of the financial information to the carrying amount of its interests in the associates as of December 31, 2025 and 2024 is as follows (continued):

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
| **Investees** |  | **Net assets**<br>**(a)** | **Ownership (%) (b)** | **Interests in the net assets**<br>**(a)\*(b)** | **Intra-group transactions** | **Others** | &nbsp;&nbsp;&nbsp;&nbsp;**Carrying**<br>**amount** |
| &nbsp;&nbsp;&nbsp;BNP Paribas Cardif Life Insurance | &nbsp;&nbsp;&nbsp;W | &nbsp;&nbsp;&nbsp;243101  | &nbsp;&nbsp;&nbsp;14.99  | &nbsp;&nbsp;&nbsp;36441  | &nbsp;&nbsp;&nbsp;(5) | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;36436  |
| &nbsp;&nbsp;&nbsp;Shinhan-Neoplux Energy Newbiz Fund |  | &nbsp;&nbsp;&nbsp;46152  | &nbsp;&nbsp;&nbsp;31.66  | &nbsp;&nbsp;&nbsp;14612  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;14612  |
| &nbsp;&nbsp;&nbsp;Shinhan-Albatross tech investment Fund |  | &nbsp;&nbsp;&nbsp;17346  | &nbsp;&nbsp;&nbsp;50.00  | &nbsp;&nbsp;&nbsp;8672  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;8672  |
| &nbsp;&nbsp;&nbsp;VOGO Debt Strategy Qualified IV Private |  | &nbsp;&nbsp;&nbsp;18565  | &nbsp;&nbsp;&nbsp;20.00  | &nbsp;&nbsp;&nbsp;3713  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;3713  |
| &nbsp;&nbsp;&nbsp;Shinhan-Midas Donga Secondary Fund |  | &nbsp;&nbsp;&nbsp;6304  | &nbsp;&nbsp;&nbsp;50.00  | &nbsp;&nbsp;&nbsp;3152  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;3152  |
| &nbsp;&nbsp;&nbsp;ShinHan – Soo Young Entrepreneur Investment Fund No.1 |  | &nbsp;&nbsp;&nbsp;14087  | &nbsp;&nbsp;&nbsp;24.00  | &nbsp;&nbsp;&nbsp;3381  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;3381  |
| &nbsp;&nbsp;&nbsp;Shinhan Praxis K-Growth Global Private Equity Fund |  | &nbsp;&nbsp;&nbsp;26081  | &nbsp;&nbsp;&nbsp;14.15  | &nbsp;&nbsp;&nbsp;3690  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;3690  |
| &nbsp;&nbsp;&nbsp;Kiwoom Milestone Professional Private Real Estate Trust 19 (\*5) |  | &nbsp;&nbsp;&nbsp;(39013) | &nbsp;&nbsp;&nbsp;50.00  | &nbsp;&nbsp;&nbsp;(19506) | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;19506  | &nbsp;&nbsp;&nbsp;- |
| &nbsp;&nbsp;&nbsp;Shinhan Global Healthcare Fund 1 (\*5) |  | &nbsp;&nbsp;&nbsp;(4886) | &nbsp;&nbsp;&nbsp;3.13  | &nbsp;&nbsp;&nbsp;(153) | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;153  | &nbsp;&nbsp;&nbsp;- |
| &nbsp;&nbsp;&nbsp;KB NA Hickory Private Special Asset Fund |  | &nbsp;&nbsp;&nbsp;46649  | &nbsp;&nbsp;&nbsp;37.50  | &nbsp;&nbsp;&nbsp;17493  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;17493  |
| &nbsp;&nbsp;&nbsp;Koramco Europe Core Private Placement Real Estate Fund No.2-2 |  | &nbsp;&nbsp;&nbsp;15481  | &nbsp;&nbsp;&nbsp;44.02  | &nbsp;&nbsp;&nbsp;6815  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;6815  |
| &nbsp;&nbsp;&nbsp;KDBC-Midas Dong-A Global contents Fund |  | &nbsp;&nbsp;&nbsp;11354  | &nbsp;&nbsp;&nbsp;23.26  | &nbsp;&nbsp;&nbsp;2640  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;2640  |
| &nbsp;&nbsp;&nbsp;Shinhan-Nvestor Liquidity Solution Fund |  | &nbsp;&nbsp;&nbsp;20571  | &nbsp;&nbsp;&nbsp;24.92  | &nbsp;&nbsp;&nbsp;5126  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;5126  |
| &nbsp;&nbsp;&nbsp;Shinhan AIM FoF Fund 1-A |  | &nbsp;&nbsp;&nbsp;39214  | &nbsp;&nbsp;&nbsp;25.00  | &nbsp;&nbsp;&nbsp;9804  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;9804  |
| &nbsp;&nbsp;&nbsp;IGIS Global Credit Fund 150-1 |  | &nbsp;&nbsp;&nbsp;19954  | &nbsp;&nbsp;&nbsp;25.00  | &nbsp;&nbsp;&nbsp;4989  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;4989  |
| &nbsp;&nbsp;&nbsp;Genesis North America Power Company No.1 PEF |  | &nbsp;&nbsp;&nbsp;15514  | &nbsp;&nbsp;&nbsp;43.84  | &nbsp;&nbsp;&nbsp;6802  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;6802  |
| &nbsp;&nbsp;&nbsp;SH MAIN Professional Investment Type Private Mixed Asset Investment Trust No.3 |  | &nbsp;&nbsp;&nbsp;40294  | &nbsp;&nbsp;&nbsp;23.33  | &nbsp;&nbsp;&nbsp;9402  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;9402  |
| &nbsp;&nbsp;&nbsp;Korea Finance Security Co., Ltd. |  | &nbsp;&nbsp;&nbsp;23754  | &nbsp;&nbsp;&nbsp;14.91  | &nbsp;&nbsp;&nbsp;3542  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;3542  |
| &nbsp;&nbsp;&nbsp;MIEL Co., Ltd. (\*2) |  | &nbsp;&nbsp;&nbsp;(142) | &nbsp;&nbsp;&nbsp;28.77  | &nbsp;&nbsp;&nbsp;(41) | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;41  | &nbsp;&nbsp;&nbsp;- |
| AIP Transportation Specialized Privately Placed Fund Trust #1 |  | &nbsp;&nbsp;&nbsp;164607  | &nbsp;&nbsp;&nbsp;35.73  | &nbsp;&nbsp;&nbsp;58807  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;58807  |
| &nbsp;&nbsp;&nbsp;Kiwoom-Shinhan Innovation Fund I |  | &nbsp;&nbsp;&nbsp;15957  | &nbsp;&nbsp;&nbsp;50.00  | &nbsp;&nbsp;&nbsp;7979  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;7979  |
| &nbsp;&nbsp;&nbsp;Samchully Midstream Private Placement Special Asset Fund 5-4 |  | &nbsp;&nbsp;&nbsp;94762  | &nbsp;&nbsp;&nbsp;41.67  | &nbsp;&nbsp;&nbsp;39484  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;39484  |
| &nbsp;&nbsp;&nbsp;MK Ventures-K Clavis Growth Capital Venture Fund 1  |  | &nbsp;&nbsp;&nbsp;10  | &nbsp;&nbsp;&nbsp;26.67  | &nbsp;&nbsp;&nbsp;3  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;3  |
| &nbsp;&nbsp;&nbsp;Vestas Qualified Investors Private Real Estate Fund Investment Trust No.37 |  | &nbsp;&nbsp;&nbsp;59022  | &nbsp;&nbsp;&nbsp;60.00  | &nbsp;&nbsp;&nbsp;35413  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;35413  |
| &nbsp;&nbsp;&nbsp;Milestone Private Real Estate Fund 3  |  | &nbsp;&nbsp;&nbsp;59637  | &nbsp;&nbsp;&nbsp;32.06  | &nbsp;&nbsp;&nbsp;19120  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;19120  |
| &nbsp;&nbsp;&nbsp;Nomura-Rifa Private Real Estate Investment Trust 31  |  | &nbsp;&nbsp;&nbsp;20258  | &nbsp;&nbsp;&nbsp;31.31  | &nbsp;&nbsp;&nbsp;6343  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;6343  |
| &nbsp;&nbsp;&nbsp;SH Senior Loan Professional Investment Type Private Mixed Asset Investment Trust No.2  |  | &nbsp;&nbsp;&nbsp;11839  | &nbsp;&nbsp;&nbsp;21.27  | &nbsp;&nbsp;&nbsp;2518  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;2518  |

---

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**16. <u>Investments in associates (continued)</u>**

(d) The reconciliation of the financial information to the carrying amount of its interests in the associates as of December 31, 2025 and 2024 is as follows (continued):

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
| **Investees** |  | **Net assets**<br>**(a)** | **Ownership (%) (b)** | **Interests in the net assets**<br>**(a)\*(b)** | **Intra-group transactions** | **Others** | &nbsp;&nbsp;&nbsp;&nbsp;**Carrying**<br>**amount** |
| &nbsp;&nbsp;&nbsp;FuturePlay-Shinhan TechInnovation Fund 1 | &nbsp;&nbsp;&nbsp;W | &nbsp;&nbsp;&nbsp;11570  | &nbsp;&nbsp;&nbsp;50.00  | &nbsp;&nbsp;&nbsp;5785  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;5785  |
| &nbsp;&nbsp;&nbsp;Stonebridge Corporate 1st Fund |  | &nbsp;&nbsp;&nbsp;9015  | &nbsp;&nbsp;&nbsp;44.12  | &nbsp;&nbsp;&nbsp;3977  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;3977  |
| &nbsp;&nbsp;&nbsp;Vogo Realty Partners Private Real Estate Fund V |  | &nbsp;&nbsp;&nbsp;49278  | &nbsp;&nbsp;&nbsp;21.64  | &nbsp;&nbsp;&nbsp;10662  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;10662  |
| &nbsp;&nbsp;&nbsp;Korea Credit Bureau  |  | &nbsp;&nbsp;&nbsp;84159  | &nbsp;&nbsp;&nbsp;9.00  | &nbsp;&nbsp;&nbsp;7574  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;7574  |
| &nbsp;&nbsp;&nbsp;Goduck Gangil1 PFV Co., Ltd. |  | &nbsp;&nbsp;&nbsp;9252  | &nbsp;&nbsp;&nbsp;1.04  | &nbsp;&nbsp;&nbsp;96  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;96  |
| &nbsp;&nbsp;&nbsp;SBC PFV Co., Ltd. (\*3) |  | &nbsp;&nbsp;&nbsp;190424  | &nbsp;&nbsp;&nbsp;25.00  | &nbsp;&nbsp;&nbsp;47606  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;(9990) | &nbsp;&nbsp;&nbsp;37616  |
| &nbsp;&nbsp;&nbsp;NH-amundi global infra private fund 16 |  | &nbsp;&nbsp;&nbsp;65935  | &nbsp;&nbsp;&nbsp;50.00  | &nbsp;&nbsp;&nbsp;32968  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;32968  |
| &nbsp;&nbsp;&nbsp;SH BNCT Professional Investment Type Private Special Asset Investment Trust |  | &nbsp;&nbsp;&nbsp;311321  | &nbsp;&nbsp;&nbsp;72.50  | &nbsp;&nbsp;&nbsp;225708  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;225708  |
| &nbsp;&nbsp;&nbsp;Sparklabs-Shinhan Opportunity Fund 1 |  | &nbsp;&nbsp;&nbsp;5505  | &nbsp;&nbsp;&nbsp;49.50  | &nbsp;&nbsp;&nbsp;2725  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;2725  |
| &nbsp;&nbsp;&nbsp;IGIS Real-estate Private Investment Trust No.33 |  | &nbsp;&nbsp;&nbsp;38261  | &nbsp;&nbsp;&nbsp;40.86  | &nbsp;&nbsp;&nbsp;15632  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;15632  |
| &nbsp;&nbsp;&nbsp;Goduck Gangil10 PFV Co., Ltd. |  | &nbsp;&nbsp;&nbsp;30978  | &nbsp;&nbsp;&nbsp;19.90  | &nbsp;&nbsp;&nbsp;6165  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;6165  |
| &nbsp;&nbsp;&nbsp;Fidelis Global Private Real Estate Trust No.2 |  | &nbsp;&nbsp;&nbsp;691  | &nbsp;&nbsp;&nbsp;79.63  | &nbsp;&nbsp;&nbsp;551  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;551  |
| &nbsp;&nbsp;&nbsp;AIP EURO PRIVATE REAL ESTATE TRUST No. 12 |  | &nbsp;&nbsp;&nbsp;85868  | &nbsp;&nbsp;&nbsp;28.70  | &nbsp;&nbsp;&nbsp;24644  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;24644  |
| &nbsp;&nbsp;&nbsp;Shinhan Global Healthcare Fund 2 (\*5) |  | &nbsp;&nbsp;&nbsp;(152) | &nbsp;&nbsp;&nbsp;13.68  | &nbsp;&nbsp;&nbsp;(21) | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;21  | &nbsp;&nbsp;&nbsp;- |
| &nbsp;&nbsp;&nbsp;Shinhan AIM Real Estate Fund No.2 |  | &nbsp;&nbsp;&nbsp;5180  | &nbsp;&nbsp;&nbsp;30.00  | &nbsp;&nbsp;&nbsp;1554  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;1554  |
| &nbsp;&nbsp;&nbsp;Shinhan AIM Real Estate Fund No.1 |  | &nbsp;&nbsp;&nbsp;13727  | &nbsp;&nbsp;&nbsp;21.01  | &nbsp;&nbsp;&nbsp;2884  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;2884  |
| &nbsp;&nbsp;&nbsp;SH Daegu Green Power Cogeneration System Professional Investment Type Private Special Asset Investment Trust  |  | &nbsp;&nbsp;&nbsp;179344  | &nbsp;&nbsp;&nbsp;22.02  | &nbsp;&nbsp;&nbsp;39491  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;39491  |
| &nbsp;&nbsp;&nbsp;SH Sangju YC Expressway Professional Investment Type Private Special Asset Investment Trust |  | &nbsp;&nbsp;&nbsp;75185  | &nbsp;&nbsp;&nbsp;29.19  | &nbsp;&nbsp;&nbsp;21947  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;21947  |
| &nbsp;&nbsp;&nbsp;SH Global Infrastructure Professional Investment Type Private Special Asset Investment Trust No.7-2  |  | &nbsp;&nbsp;&nbsp;22077  | &nbsp;&nbsp;&nbsp;71.43  | &nbsp;&nbsp;&nbsp;15770  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;15770  |
| &nbsp;&nbsp;&nbsp;Korea Omega-Shinhan Project Fund I |  | &nbsp;&nbsp;&nbsp;38945  | &nbsp;&nbsp;&nbsp;50.00  | &nbsp;&nbsp;&nbsp;19473  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;19473  |
| &nbsp;&nbsp;&nbsp;Samsung SRA Real Estate Professional Private 45 |  | &nbsp;&nbsp;&nbsp;121103  | &nbsp;&nbsp;&nbsp;25.00  | &nbsp;&nbsp;&nbsp;30276  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;30276  |
| IBK Global New Renewable Energy Special Asset Professional Private2 |  | &nbsp;&nbsp;&nbsp;114189  | &nbsp;&nbsp;&nbsp;28.98  | &nbsp;&nbsp;&nbsp;33098  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;33098  |
| &nbsp;&nbsp;&nbsp;VS Cornerstone Fund |  | &nbsp;&nbsp;&nbsp;7831  | &nbsp;&nbsp;&nbsp;41.18  | &nbsp;&nbsp;&nbsp;3225  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;3225  |
| &nbsp;&nbsp;&nbsp;NH-Amundi US Infrastructure Private Fund2 |  | &nbsp;&nbsp;&nbsp;2099  | &nbsp;&nbsp;&nbsp;25.91  | &nbsp;&nbsp;&nbsp;544  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;544  |
| &nbsp;&nbsp;&nbsp;Kakao-Shinhan 1st TNYT Fund |  | &nbsp;&nbsp;&nbsp;48697  | &nbsp;&nbsp;&nbsp;48.62  | &nbsp;&nbsp;&nbsp;23678  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;23678  |
| &nbsp;&nbsp;&nbsp;Pacific Private Placement Real Estate Fund No.40 |  | &nbsp;&nbsp;&nbsp;46996  | &nbsp;&nbsp;&nbsp;24.73  | &nbsp;&nbsp;&nbsp;11623  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;11623  |
| &nbsp;&nbsp;&nbsp;Mastern Private Real Estate Loan Fund No.2 |  | &nbsp;&nbsp;&nbsp;3963  | &nbsp;&nbsp;&nbsp;33.57  | &nbsp;&nbsp;&nbsp;1330  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;1330  |
| &nbsp;&nbsp;&nbsp;LB Scotland Amazon Fulfillment Center Fund 29  |  | &nbsp;&nbsp;&nbsp;28996  | &nbsp;&nbsp;&nbsp;65.00  | &nbsp;&nbsp;&nbsp;18848  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;18848  |
| &nbsp;&nbsp;&nbsp;JR AMC Hungary Budapest Office Fund 16 |  | &nbsp;&nbsp;&nbsp;40488  | &nbsp;&nbsp;&nbsp;32.57  | &nbsp;&nbsp;&nbsp;13187  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;13187  |
| &nbsp;&nbsp;EDNCENTRAL Co., Ltd. (\*6) |  | &nbsp;&nbsp;&nbsp;(77934) | &nbsp;&nbsp;&nbsp;13.47  | &nbsp;&nbsp;&nbsp;(10495) | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;10495  | &nbsp;&nbsp;&nbsp;- |

---

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**16. <u>Investments in associates (continued)</u>**

(d) The reconciliation of the financial information to the carrying amount of its interests in the associates as of December 31, 2025 and 2024 is as follows (continued):

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
| **Investees** |  | **Net assets**<br>**(a)** | **Ownership (%) (b)** | **Interests in the net assets**<br>**(a)\*(b)** | **Intra-group transactions** | **Others** | &nbsp;&nbsp;&nbsp;&nbsp;**Carrying**<br>**amount** |
| &nbsp;&nbsp;&nbsp;Gyeonggi-Neoplux Superman Fund | &nbsp;&nbsp;&nbsp;W | &nbsp;&nbsp;&nbsp;19014  | &nbsp;&nbsp;&nbsp;21.76  | &nbsp;&nbsp;&nbsp;4138  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;4138  |
| &nbsp;&nbsp;&nbsp;NewWave 6th Fund |  | &nbsp;&nbsp;&nbsp;35694  | &nbsp;&nbsp;&nbsp;30.00  | &nbsp;&nbsp;&nbsp;10708  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;10708  |
| &nbsp;&nbsp;&nbsp;Neoplux No.3 Private Equity Fund |  | &nbsp;&nbsp;&nbsp;121523  | &nbsp;&nbsp;&nbsp;10.00  | &nbsp;&nbsp;&nbsp;12152  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;12152  |
| &nbsp;&nbsp;&nbsp;PCC Amberstone Private Equity Fund I |  | &nbsp;&nbsp;&nbsp;67099  | &nbsp;&nbsp;&nbsp;21.67  | &nbsp;&nbsp;&nbsp;14540  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;14540  |
| &nbsp;&nbsp;&nbsp;KIAMCO POWERLOAN TRUST 4TH |  | &nbsp;&nbsp;&nbsp;102818  | &nbsp;&nbsp;&nbsp;47.37  | &nbsp;&nbsp;&nbsp;48703  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;48703  |
| &nbsp;&nbsp;&nbsp;Mastern Opportunity Seeking Real Estate Fund II |  | &nbsp;&nbsp;&nbsp;23725  | &nbsp;&nbsp;&nbsp;22.22  | &nbsp;&nbsp;&nbsp;5272  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;5272  |
| &nbsp;&nbsp;&nbsp;Neoplux Market-Frontier Secondary Fund  |  | &nbsp;&nbsp;&nbsp;41421  | &nbsp;&nbsp;&nbsp;19.74  | &nbsp;&nbsp;&nbsp;8175  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;8175  |
| &nbsp;&nbsp;&nbsp;Synergy Green New Deal 1st New Technology Business Investment Fund |  | &nbsp;&nbsp;&nbsp;38542  | &nbsp;&nbsp;&nbsp;28.17  | &nbsp;&nbsp;&nbsp;10857  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;10857  |
| &nbsp;&nbsp;&nbsp;KIAMCO Vietnam Solar Special Asset Private Investment Trust |  | &nbsp;&nbsp;&nbsp;14205  | &nbsp;&nbsp;&nbsp;50.00  | &nbsp;&nbsp;&nbsp;7103  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;7103  |
| &nbsp;&nbsp;&nbsp;SHINHAN-NEO Core Industrial Technology Fund |  | &nbsp;&nbsp;&nbsp;16304  | &nbsp;&nbsp;&nbsp;49.75  | &nbsp;&nbsp;&nbsp;8111  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;8111  |
| &nbsp;&nbsp;&nbsp;SHBNPP Green New Deal Energy Professional Investment Type Private Special Asset Investment Trust No.2 |  | &nbsp;&nbsp;&nbsp;72365  | &nbsp;&nbsp;&nbsp;30.00  | &nbsp;&nbsp;&nbsp;21710  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;21710  |
| &nbsp;&nbsp;&nbsp;Eum Private Equity Fund No.7 |  | &nbsp;&nbsp;&nbsp;43604  | &nbsp;&nbsp;&nbsp;21.00  | &nbsp;&nbsp;&nbsp;9156  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;9156  |
| &nbsp;&nbsp;&nbsp;Kiwoom Hero No.4 Private Equity Fund |  | &nbsp;&nbsp;&nbsp;19934  | &nbsp;&nbsp;&nbsp;21.05  | &nbsp;&nbsp;&nbsp;4197  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;4197  |
| &nbsp;&nbsp;&nbsp;AJ-KOSNET Semicon One Venture Fund |  | &nbsp;&nbsp;&nbsp;14454  | &nbsp;&nbsp;&nbsp;22.22  | &nbsp;&nbsp;&nbsp;3212  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;3212  |
| &nbsp;&nbsp;&nbsp;Timefolio The Venture-V second |  | &nbsp;&nbsp;&nbsp;6586  | &nbsp;&nbsp;&nbsp;20.73  | &nbsp;&nbsp;&nbsp;1365  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;1365  |
| &nbsp;&nbsp;&nbsp;Shinhan Smilegate Global PEF I |  | &nbsp;&nbsp;&nbsp;27323  | &nbsp;&nbsp;&nbsp;14.21  | &nbsp;&nbsp;&nbsp;3882  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;3882  |
| &nbsp;&nbsp;&nbsp;Genesis Eco No.1 PEF |  | &nbsp;&nbsp;&nbsp;38185  | &nbsp;&nbsp;&nbsp;29.01  | &nbsp;&nbsp;&nbsp;11077  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;11077  |
| &nbsp;&nbsp;&nbsp;SHINHAN-NEO Market-Frontier 2nd Fund |  | &nbsp;&nbsp;&nbsp;64400  | &nbsp;&nbsp;&nbsp;42.70  | &nbsp;&nbsp;&nbsp;27499  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;27499  |
| &nbsp;&nbsp;&nbsp;J& Moorim Jade Investment Fund |  | &nbsp;&nbsp;&nbsp;21508  | &nbsp;&nbsp;&nbsp;24.89  | &nbsp;&nbsp;&nbsp;5353  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;5353  |
| &nbsp;&nbsp;&nbsp;Ulmus SHC innovation investment fund |  | &nbsp;&nbsp;&nbsp;17910  | &nbsp;&nbsp;&nbsp;24.04  | &nbsp;&nbsp;&nbsp;4305  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;4305  |
| &nbsp;&nbsp;&nbsp;T Core Industrial Technology 1st Venture PEF |  | &nbsp;&nbsp;&nbsp;9518  | &nbsp;&nbsp;&nbsp;31.47  | &nbsp;&nbsp;&nbsp;2995  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;2995  |
| TI First Property Private Investment Trust 1 |  | &nbsp;&nbsp;&nbsp;7755  | &nbsp;&nbsp;&nbsp;40.00  | &nbsp;&nbsp;&nbsp;3102  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;3102  |
| &nbsp;&nbsp;&nbsp;Kiwoom-Shinhan Innovation Fund 2 |  | &nbsp;&nbsp;&nbsp;23862  | &nbsp;&nbsp;&nbsp;42.86  | &nbsp;&nbsp;&nbsp;10227  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;10227  |
| &nbsp;&nbsp;&nbsp;ETRI Holdings-Shinhan 1st Unicorn Fund |  | &nbsp;&nbsp;&nbsp;9391  | &nbsp;&nbsp;&nbsp;50.00  | &nbsp;&nbsp;&nbsp;4696  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;4696  |
| &nbsp;&nbsp;&nbsp;SJ ESG Innovative Growth Fund |  | &nbsp;&nbsp;&nbsp;10902  | &nbsp;&nbsp;&nbsp;28.57  | &nbsp;&nbsp;&nbsp;3115  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;3115  |
| &nbsp;&nbsp;&nbsp;AVES 1st Corporate Recovery Private Equity Fund |  | &nbsp;&nbsp;&nbsp;5937  | &nbsp;&nbsp;&nbsp;76.19  | &nbsp;&nbsp;&nbsp;4523  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;4523  |

---

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**16. <u>Investments in associates (continued)</u>**

(d) The reconciliation of the financial information to the carrying amount of its interests in the associates as of December 31, 2025 and 2024 is as follows (continued):

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
| **Investees** |  | **Net assets**<br>**(a)** | **Ownership (%) (b)** | **Interests in the net assets**<br>**(a)\*(b)** | **Intra-group transactions** | **Others** | &nbsp;&nbsp;&nbsp;&nbsp;**Carrying**<br>**amount** |
| &nbsp;&nbsp;&nbsp;Reverent-Shinhan Vista Fund  | &nbsp;&nbsp;&nbsp;W | &nbsp;&nbsp;&nbsp;25415  | &nbsp;&nbsp;&nbsp;13.41  | &nbsp;&nbsp;&nbsp;3409  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;3409  |
| &nbsp;&nbsp;&nbsp;JS Shinhan Private Equity Fund  |  | &nbsp;&nbsp;&nbsp;165747  | &nbsp;&nbsp;&nbsp;3.85  | &nbsp;&nbsp;&nbsp;6381  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;6381  |
| &nbsp;&nbsp;&nbsp;Meta TB ESG Private Equity Fund I |  | &nbsp;&nbsp;&nbsp;20742  | &nbsp;&nbsp;&nbsp;27.40  | &nbsp;&nbsp;&nbsp;5683  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;5683  |
| &nbsp;&nbsp;&nbsp;Shinhan VC tomorrow venture fund 1 |  | &nbsp;&nbsp;&nbsp;178267  | &nbsp;&nbsp;&nbsp;39.62  | &nbsp;&nbsp;&nbsp;70633  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;70633  |
| &nbsp;&nbsp;&nbsp;H-IOTA Fund |  | &nbsp;&nbsp;&nbsp;37789  | &nbsp;&nbsp;&nbsp;24.81  | &nbsp;&nbsp;&nbsp;9377  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;9377  |
| &nbsp;&nbsp;&nbsp;Stonebridge-Shinhan Unicorn Secondary Fund  |  | &nbsp;&nbsp;&nbsp;52230  | &nbsp;&nbsp;&nbsp;26.01  | &nbsp;&nbsp;&nbsp;13587  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;13587  |
| &nbsp;&nbsp;&nbsp;Tres-Yujin Trust  |  | &nbsp;&nbsp;&nbsp;26062  | &nbsp;&nbsp;&nbsp;50.00  | &nbsp;&nbsp;&nbsp;13031  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;13031  |
| Shinhan-Time mezzanine blind Fund |  | &nbsp;&nbsp;&nbsp;32851  | &nbsp;&nbsp;&nbsp;50.00  | &nbsp;&nbsp;&nbsp;16426  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;16426  |
| &nbsp;&nbsp;&nbsp;Capstone REITs No.26 |  | &nbsp;&nbsp;&nbsp;10738  | &nbsp;&nbsp;&nbsp;50.00  | &nbsp;&nbsp;&nbsp;5369  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;5369  |
| &nbsp;&nbsp;&nbsp;JB Incheon-Bucheon REITS No.54 |  | &nbsp;&nbsp;&nbsp;12634  | &nbsp;&nbsp;&nbsp;39.31  | &nbsp;&nbsp;&nbsp;4967  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;4967  |
| &nbsp;&nbsp;&nbsp;Hankook Smart Real Asset Investment Trust No.3 |  | &nbsp;&nbsp;&nbsp;18017  | &nbsp;&nbsp;&nbsp;33.33  | &nbsp;&nbsp;&nbsp;6006  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;6006  |
| &nbsp;&nbsp;&nbsp;JB Hwaseong-Hadong REITs No.53 |  | &nbsp;&nbsp;&nbsp;16029  | &nbsp;&nbsp;&nbsp;31.03  | &nbsp;&nbsp;&nbsp;4974  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;4974  |
| &nbsp;&nbsp;&nbsp;KB Oaktree Trust No.3 |  | &nbsp;&nbsp;&nbsp;29665  | &nbsp;&nbsp;&nbsp;33.33  | &nbsp;&nbsp;&nbsp;9888  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;9888  |
| &nbsp;&nbsp;&nbsp;SH Real Estate Loan Investment Type Private Real Estate Investment Trust No.2 |  | &nbsp;&nbsp;&nbsp;177590 | &nbsp;&nbsp;&nbsp;29.73  | &nbsp;&nbsp;&nbsp;52797  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;52797  |
| &nbsp;&nbsp;&nbsp;Shinhan JigaeNamsan Road Private Special Asset Investment Trust |  | &nbsp;&nbsp;&nbsp;159538  | &nbsp;&nbsp;&nbsp;24.85  | &nbsp;&nbsp;&nbsp;39645  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;39645  |
| &nbsp;&nbsp;&nbsp;KB Distribution Private Real Estate 3-1 |  | &nbsp;&nbsp;&nbsp;64211  | &nbsp;&nbsp;&nbsp;37.50  | &nbsp;&nbsp;&nbsp;24079  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;24079  |
| &nbsp;&nbsp;&nbsp;Pacific Private Investment Trust No.49-1  |  | &nbsp;&nbsp;&nbsp;35317  | &nbsp;&nbsp;&nbsp;79.28  | &nbsp;&nbsp;&nbsp;28000  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;28000  |
| &nbsp;&nbsp;&nbsp;KIWOOM Real estate private placement fund for normal investors No. 31  |  | &nbsp;&nbsp;&nbsp;13386  | &nbsp;&nbsp;&nbsp;60.00  | &nbsp;&nbsp;&nbsp;8032  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;8032  |
| &nbsp;&nbsp;&nbsp;RIFA Real estate private placement fund for normal investors No. 51  |  | &nbsp;&nbsp;&nbsp;13428  | &nbsp;&nbsp;&nbsp;40.00  | &nbsp;&nbsp;&nbsp;5371  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;5371  |
| &nbsp;&nbsp;&nbsp;Shinhan-Kunicorn first Fund |  | &nbsp;&nbsp;&nbsp;24596  | &nbsp;&nbsp;&nbsp;38.31  | &nbsp;&nbsp;&nbsp;9424  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;9424  |
| &nbsp;&nbsp;&nbsp;Shinhan-Quantum Startup Fund |  | &nbsp;&nbsp;&nbsp;11519  | &nbsp;&nbsp;&nbsp;49.18  | &nbsp;&nbsp;&nbsp;5665  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;5665  |
| Shinhan Simone Fund Ⅰ |  | &nbsp;&nbsp;&nbsp;8898  | &nbsp;&nbsp;&nbsp;38.46  | &nbsp;&nbsp;&nbsp;3422  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;3422  |
| &nbsp;&nbsp;&nbsp;Korea Investment develop seed Trust No.1 |  | &nbsp;&nbsp;&nbsp;25362  | &nbsp;&nbsp;&nbsp;40.00  | &nbsp;&nbsp;&nbsp;10145  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;10145  |
| &nbsp;&nbsp;&nbsp;Tiger Green alpha Trust No.29  |  | &nbsp;&nbsp;&nbsp;31492  | &nbsp;&nbsp;&nbsp;95.24  | &nbsp;&nbsp;&nbsp;29992  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;29992  |
| &nbsp;&nbsp;&nbsp;STIC ALT Global II Private Equity Fund |  | &nbsp;&nbsp;&nbsp;45269  | &nbsp;&nbsp;&nbsp;21.74  | &nbsp;&nbsp;&nbsp;9841  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;9841  |
| &nbsp;&nbsp;&nbsp;DDI LVC Master Real Estate Investment Trust Co., Ltd. (\*1) |  | &nbsp;&nbsp;&nbsp;38586  | &nbsp;&nbsp;&nbsp;15.00  | &nbsp;&nbsp;&nbsp;5788  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;12  | &nbsp;&nbsp;&nbsp;5800  |
| &nbsp;&nbsp;&nbsp;Reverent Frontier Private Equity Fund IV Specializing in Start-up Venture Business |  | &nbsp;&nbsp;&nbsp;8683  | &nbsp;&nbsp;&nbsp;23.89  | &nbsp;&nbsp;&nbsp;2074  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;2074  |
| &nbsp;&nbsp;&nbsp;Find-Green New Deal 2nd Equity Fund |  | &nbsp;&nbsp;&nbsp;19154  | &nbsp;&nbsp;&nbsp;22.57  | &nbsp;&nbsp;&nbsp;4324  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;4324  |
| &nbsp;&nbsp;&nbsp;ShinhanFitrin 1st Technology Business Investment Association  |  | &nbsp;&nbsp;&nbsp;26175  | &nbsp;&nbsp;&nbsp;16.17  | &nbsp;&nbsp;&nbsp;4232  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;4232  |
| &nbsp;&nbsp;&nbsp;Koramco Private Real Estate Fund 143 |  | &nbsp;&nbsp;&nbsp;22011  | &nbsp;&nbsp;&nbsp;30.30  | &nbsp;&nbsp;&nbsp;6669  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;6669  |
| &nbsp;&nbsp;&nbsp;Korea Investment Top Mezzanine Private Real Estate Trust No.1 |  | &nbsp;&nbsp;&nbsp;44440  | &nbsp;&nbsp;&nbsp;22.22  | &nbsp;&nbsp;&nbsp;9876  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;9876  |
| &nbsp;&nbsp;&nbsp;LB YoungNam Logistics Private Trust No.40 |  | &nbsp;&nbsp;&nbsp;38500  | &nbsp;&nbsp;&nbsp;25.00  | &nbsp;&nbsp;&nbsp;9625  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;9625  |
| &nbsp;&nbsp;&nbsp;Shinhan-Cognitive Start-up Fund L.P. |  | &nbsp;&nbsp;&nbsp;12844  | &nbsp;&nbsp;&nbsp;32.77  | &nbsp;&nbsp;&nbsp;4209  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;4209  |
| &nbsp;&nbsp;&nbsp;Cornerstone J&M Fund I |  | &nbsp;&nbsp;&nbsp;12802  | &nbsp;&nbsp;&nbsp;26.67  | &nbsp;&nbsp;&nbsp;3414  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;3414  |
| &nbsp;&nbsp;&nbsp;Logisvalley Shinhan REIT Co., Ltd. (\*1) |  | &nbsp;&nbsp;&nbsp;23314  | &nbsp;&nbsp;&nbsp;20.27  | &nbsp;&nbsp;&nbsp;4726  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;(1337) | &nbsp;&nbsp;&nbsp;3389  |
| &nbsp;&nbsp;&nbsp;Shinhan-G.N.Tech Smart Innovation Fund |  | &nbsp;&nbsp;&nbsp;26008  | &nbsp;&nbsp;&nbsp;50.00  | &nbsp;&nbsp;&nbsp;13004  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;13004  |

---

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**16. <u>Investments in associates (continued)</u>**

(d) The reconciliation of the financial information to the carrying amount of its interests in the associates as of December 31, 2025 and 2024 is as follows (continued):

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
| **Investees** |  | **Net assets**<br>**(a)** | **Ownership (%) (b)** | **Interests in the net assets**<br>**(a)\*(b)** | **Intra-group transactions** | **Others** | &nbsp;&nbsp;&nbsp;&nbsp;**Carrying**<br>**amount** |
| &nbsp;&nbsp;&nbsp;Shinhan-Gene and New Normal First Mover Venture Investment Equity Fund 1st | &nbsp;&nbsp;&nbsp;W | &nbsp;&nbsp;&nbsp;13516  | &nbsp;&nbsp;&nbsp;50.00  | &nbsp;&nbsp;&nbsp;6758  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;6758  |
| &nbsp;&nbsp;&nbsp;Korea Investment Green Newdeal Infra Trust No.1 |  | &nbsp;&nbsp;&nbsp;57542  | &nbsp;&nbsp;&nbsp;27.97  | &nbsp;&nbsp;&nbsp;16096  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;16096  |
| &nbsp;&nbsp;&nbsp;BTS 2nd Private Equity Fund |  | &nbsp;&nbsp;&nbsp;39075  | &nbsp;&nbsp;&nbsp;26.00  | &nbsp;&nbsp;&nbsp;10159  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;10159  |
| &nbsp;&nbsp;&nbsp;NH-J&-IBKC Label Technology Fund |  | &nbsp;&nbsp;&nbsp;34686  | &nbsp;&nbsp;&nbsp;27.81  | &nbsp;&nbsp;&nbsp;9646  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;9646  |
| &nbsp;&nbsp;&nbsp;Hanyang Time Mezzanine Fund |  | &nbsp;&nbsp;&nbsp;8790  | &nbsp;&nbsp;&nbsp;28.57  | &nbsp;&nbsp;&nbsp;2511  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;2511  |
| &nbsp;&nbsp;&nbsp;Shinhan-Sneak Peek Bio&Healthcare Bounce Back Fund |  | &nbsp;&nbsp;&nbsp;7831  | &nbsp;&nbsp;&nbsp;50.00  | &nbsp;&nbsp;&nbsp;3916  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;3916  |
| &nbsp;&nbsp;&nbsp;Shinhan-isquare Venture PEF 1 |  | &nbsp;&nbsp;&nbsp;10592  | &nbsp;&nbsp;&nbsp;40.00  | &nbsp;&nbsp;&nbsp;4237  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;4237  |
| &nbsp;&nbsp;&nbsp;Aurum Goldrush ESG Private Fund No. 1 |  | &nbsp;&nbsp;&nbsp;10613  | &nbsp;&nbsp;&nbsp;28.33  | &nbsp;&nbsp;&nbsp;3007  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;3007  |
| &nbsp;&nbsp;&nbsp;Capstone Develop Frontier Trust |  | &nbsp;&nbsp;&nbsp;37563  | &nbsp;&nbsp;&nbsp;21.43  | &nbsp;&nbsp;&nbsp;8049  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;8049  |
| &nbsp;&nbsp;&nbsp;Nextrade Co., Ltd. |  | &nbsp;&nbsp;&nbsp;121250  | &nbsp;&nbsp;&nbsp;8.00  | &nbsp;&nbsp;&nbsp;9700  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;9700  |
| &nbsp;&nbsp;&nbsp;IBKC-Behigh Fund 1st |  | &nbsp;&nbsp;&nbsp;10629  | &nbsp;&nbsp;&nbsp;29.73  | &nbsp;&nbsp;&nbsp;3160  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;3160  |
| &nbsp;&nbsp;&nbsp;ON No.1 Private Equity Fund |  | &nbsp;&nbsp;&nbsp;19991  | &nbsp;&nbsp;&nbsp;28.57  | &nbsp;&nbsp;&nbsp;5712  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;5712  |
| &nbsp;&nbsp;&nbsp;Digital New Deal Kappa Private Equity Fund |  | &nbsp;&nbsp;&nbsp;19178  | &nbsp;&nbsp;&nbsp;24.75  | &nbsp;&nbsp;&nbsp;4747  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;4747  |
| &nbsp;&nbsp;&nbsp;IBKCJS New Technology Fund No.1 |  | &nbsp;&nbsp;&nbsp;8901  | &nbsp;&nbsp;&nbsp;29.41  | &nbsp;&nbsp;&nbsp;2618  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;2618  |
| &nbsp;&nbsp;&nbsp;DS-Shinhan-JBWoori New Media New Technology Investment Fund No.1 |  | &nbsp;&nbsp;&nbsp;46301  | &nbsp;&nbsp;&nbsp;20.83  | &nbsp;&nbsp;&nbsp;9646  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;9646  |
| &nbsp;&nbsp;&nbsp;VOGO Debt Strategy General Private Real Estate Investment Trust No. 18 |  | &nbsp;&nbsp;&nbsp;39634  | &nbsp;&nbsp;&nbsp;28.57  | &nbsp;&nbsp;&nbsp;11324  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;11324  |
| &nbsp;&nbsp;&nbsp;Koramco IPO REITS Mezzanine General Private Investment Trust No. 38  |  | &nbsp;&nbsp;&nbsp;4371  | &nbsp;&nbsp;&nbsp;75.00  | &nbsp;&nbsp;&nbsp;3278  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;3278  |
| &nbsp;&nbsp;&nbsp;TogetherKorea Private Investment Trust No. 6  |  | &nbsp;&nbsp;&nbsp;5424  | &nbsp;&nbsp;&nbsp;99.98  | &nbsp;&nbsp;&nbsp;5423  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;5423  |
| &nbsp;&nbsp;&nbsp;TogetherKorea Private Investment Trust No. 7  |  | &nbsp;&nbsp;&nbsp;5424  | &nbsp;&nbsp;&nbsp;99.98  | &nbsp;&nbsp;&nbsp;5423  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;5423  |
| &nbsp;&nbsp;&nbsp;Kiwoom Core Industrial Technology Investment Fund No.3 |  | &nbsp;&nbsp;&nbsp;12139  | &nbsp;&nbsp;&nbsp;34.75  | &nbsp;&nbsp;&nbsp;4219  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;4219  |
| &nbsp;&nbsp;&nbsp;Penture K-Content Investment Fund |  | &nbsp;&nbsp;&nbsp;57216  | &nbsp;&nbsp;&nbsp;19.78  | &nbsp;&nbsp;&nbsp;11319  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;11319  |
| &nbsp;&nbsp;&nbsp;2023 Shinhan-JB Woori-Daeshin Listed Companies New Technology Fund  |  | &nbsp;&nbsp;&nbsp;44894  | &nbsp;&nbsp;&nbsp;30.00  | &nbsp;&nbsp;&nbsp;13468  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;13468  |
| &nbsp;&nbsp;&nbsp;Hana Alternative Investment Kosmes PCBO General PEF No. 1 |  | &nbsp;&nbsp;&nbsp;13837  | &nbsp;&nbsp;&nbsp;37.04  | &nbsp;&nbsp;&nbsp;5125  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;5125  |
| &nbsp;&nbsp;&nbsp;Shinhan-Timefolio Bio Accelerator Fund |  | &nbsp;&nbsp;&nbsp;24195  | &nbsp;&nbsp;&nbsp;48.39  | &nbsp;&nbsp;&nbsp;11707  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;11707  |
| &nbsp;&nbsp;&nbsp;Shinhan M&A-ESG Fund |  | &nbsp;&nbsp;&nbsp;27660  | &nbsp;&nbsp;&nbsp;23.33  | &nbsp;&nbsp;&nbsp;6454  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;6454  |
| &nbsp;&nbsp;&nbsp;Shinhan Mid and Small-Sized Office Value-Added MO REIT Co., Ltd. |  | &nbsp;&nbsp;&nbsp;66130  | &nbsp;&nbsp;&nbsp;28.43  | &nbsp;&nbsp;&nbsp;18804  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;18804  |
| &nbsp;&nbsp;&nbsp;KDBC meta-enter New Technology investment fund |  | &nbsp;&nbsp;&nbsp;24373  | &nbsp;&nbsp;&nbsp;27.89  | &nbsp;&nbsp;&nbsp;6797  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;6797  |
| &nbsp;&nbsp;&nbsp;Shinhan Time Secondary Blind New Technology Investment Trust |  | &nbsp;&nbsp;&nbsp;9762  | &nbsp;&nbsp;&nbsp;47.50  | &nbsp;&nbsp;&nbsp;4637  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;4637  |
| &nbsp;&nbsp;&nbsp;Shinhan DS Secondary Investment Fund |  | &nbsp;&nbsp;&nbsp;4895  | &nbsp;&nbsp;&nbsp;49.83  | &nbsp;&nbsp;&nbsp;2439  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;2439  |
| &nbsp;&nbsp;&nbsp;Shinhan-openwater pre-IPO Investment Trust 1 |  | &nbsp;&nbsp;&nbsp;11332  | &nbsp;&nbsp;&nbsp;50.00  | &nbsp;&nbsp;&nbsp;5666  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;5666  |
| &nbsp;&nbsp;&nbsp;Shinhan-CJ TechInnovation Fund 1st |  | &nbsp;&nbsp;&nbsp;11488  | &nbsp;&nbsp;&nbsp;40.00  | &nbsp;&nbsp;&nbsp;4595  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;4595  |
| &nbsp;&nbsp;&nbsp;Shinhan-Eco Venture Fund 2nd |  | &nbsp;&nbsp;&nbsp;9893  | &nbsp;&nbsp;&nbsp;40.00  | &nbsp;&nbsp;&nbsp;3957  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;3957  |

---

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**16. <u>Investments in associates (continued)</u>**

(d) The reconciliation of the financial information to the carrying amount of its interests in the associates as of December 31, 2025 and 2024 is as follows (continued):

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
| **Investees** |  | **Net assets**<br>**(a)** | **Ownership (%) (b)** | **Interests in the net assets**<br>**(a)\*(b)** | **Intra-group transactions** | **Others** | &nbsp;&nbsp;&nbsp;&nbsp;**Carrying**<br>**amount** |
| &nbsp;&nbsp;&nbsp;Heungkuk-Shinhan the1st Visionary Technology Investment Trust no. 1 | &nbsp;&nbsp;&nbsp;W | &nbsp;&nbsp;&nbsp;16243  | &nbsp;&nbsp;&nbsp;40.00  | &nbsp;&nbsp;&nbsp;6497  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;6497  |
| &nbsp;&nbsp;&nbsp;Hantoo Shinhan Lake K-beauty Technology Investment Trust |  | &nbsp;&nbsp;&nbsp;44701  | &nbsp;&nbsp;&nbsp;22.96  | &nbsp;&nbsp;&nbsp;10264  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;10264  |
| &nbsp;&nbsp;&nbsp;Shinhan HB Wellness 1st Investment Trust |  | &nbsp;&nbsp;&nbsp;10971  | &nbsp;&nbsp;&nbsp;48.54  | &nbsp;&nbsp;&nbsp;5326  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;5326  |
| &nbsp;&nbsp;&nbsp;Korea real Asset Fund No.3 |  | &nbsp;&nbsp;&nbsp;57933  | &nbsp;&nbsp;&nbsp;28.57  | &nbsp;&nbsp;&nbsp;16552  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;16552  |
| &nbsp;&nbsp;&nbsp;PineStreet Global Corporate FoF XIII-2 |  | &nbsp;&nbsp;&nbsp;3743  | &nbsp;&nbsp;&nbsp;100.00  | &nbsp;&nbsp;&nbsp;3743  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;3743  |
| &nbsp;&nbsp;&nbsp;IGIS Yongsan Office General Private Real Estate Investment Trust 518 |  | &nbsp;&nbsp;&nbsp;65387  | &nbsp;&nbsp;&nbsp;26.22  | &nbsp;&nbsp;&nbsp;17144  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;17144  |
| &nbsp;&nbsp;&nbsp;Samsung-dunamu Innovative IT Technology Investment Trust No. 1 |  | &nbsp;&nbsp;&nbsp;16313  | &nbsp;&nbsp;&nbsp;22.99  | &nbsp;&nbsp;&nbsp;3750  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;3750  |
| &nbsp;&nbsp;&nbsp;Time Robotics New Technology Investment Trust |  | &nbsp;&nbsp;&nbsp;12651  | &nbsp;&nbsp;&nbsp;29.86  | &nbsp;&nbsp;&nbsp;3778  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;3778  |
| &nbsp;&nbsp;&nbsp;Ascent-welcome Technology Investment Trust No.2 |  | &nbsp;&nbsp;&nbsp;30597  | &nbsp;&nbsp;&nbsp;27.65  | &nbsp;&nbsp;&nbsp;8460  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;8460  |
| &nbsp;&nbsp;&nbsp;Newmain I funds |  | &nbsp;&nbsp;&nbsp;25754  | &nbsp;&nbsp;&nbsp;36.36  | &nbsp;&nbsp;&nbsp;9364  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;9364  |
| &nbsp;&nbsp;&nbsp;Igis General PE Real Estate Investment Trust 517-1 |  | &nbsp;&nbsp;&nbsp;56728  | &nbsp;&nbsp;&nbsp;96.78  | &nbsp;&nbsp;&nbsp;54902  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;54902  |
| &nbsp;&nbsp;&nbsp;SH Ulmus M.P.E. Innovative Venture Fund 7 |  | &nbsp;&nbsp;&nbsp;10612  | &nbsp;&nbsp;&nbsp;28.57  | &nbsp;&nbsp;&nbsp;3032  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;3032  |
| &nbsp;&nbsp;&nbsp;Consus Osansegyo No.2 |  | &nbsp;&nbsp;&nbsp;16018  | &nbsp;&nbsp;&nbsp;50.00  | &nbsp;&nbsp;&nbsp;8009  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;8009  |
| &nbsp;&nbsp;&nbsp;Shinhan AIM Private Fund of Fund 9-B |  | &nbsp;&nbsp;&nbsp;146963  | &nbsp;&nbsp;&nbsp;25.00  | &nbsp;&nbsp;&nbsp;36741  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;36741  |
| &nbsp;&nbsp;&nbsp;Shinhan General Private Real Estate Investment Trust No.3 |  | &nbsp;&nbsp;&nbsp;128674  | &nbsp;&nbsp;&nbsp;20.75  | &nbsp;&nbsp;&nbsp;26706  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;26706  |
| &nbsp;&nbsp;&nbsp;Paros Kosdaq Venture General Private Investment Trust No. 5  |  | &nbsp;&nbsp;&nbsp;23074  | &nbsp;&nbsp;&nbsp;28.56  | &nbsp;&nbsp;&nbsp;6590  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;6590  |
| &nbsp;&nbsp;&nbsp;Happy Pet Life Care New Technology Investment Association No.2 |  | &nbsp;&nbsp;&nbsp;9997  | &nbsp;&nbsp;&nbsp;30.00  | &nbsp;&nbsp;&nbsp;2999  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;2999  |
| &nbsp;&nbsp;&nbsp;Shinhan-soo secondary Fund |  | &nbsp;&nbsp;&nbsp;21567  | &nbsp;&nbsp;&nbsp;77.61  | &nbsp;&nbsp;&nbsp;16737  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;16737  |
| &nbsp;&nbsp;&nbsp;TECHFIN RATINGS Co., Ltd. (\*4) |  | &nbsp;&nbsp;&nbsp;28223  | &nbsp;&nbsp;&nbsp;45.00  | &nbsp;&nbsp;&nbsp;12700  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;12910  | &nbsp;&nbsp;&nbsp;25610  |
| &nbsp;&nbsp;&nbsp;Songpa biz cluster PFV Co., Ltd. |  | &nbsp;&nbsp;&nbsp;48775  | &nbsp;&nbsp;&nbsp;27.40  | &nbsp;&nbsp;&nbsp;13364  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;13364  |
| &nbsp;&nbsp;&nbsp;Planeta PTE LTD |  | &nbsp;&nbsp;&nbsp;34027  | &nbsp;&nbsp;&nbsp;33.33  | &nbsp;&nbsp;&nbsp;11341  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;11341  |
| &nbsp;&nbsp;&nbsp;The E&Shinhan New Growth Up Fund |  | &nbsp;&nbsp;&nbsp;7035  | &nbsp;&nbsp;&nbsp;50.00  | &nbsp;&nbsp;&nbsp;3518  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;3518  |
| &nbsp;&nbsp;&nbsp;Shinhan-GB FutureFlow Fund L.P. |  | &nbsp;&nbsp;&nbsp;8852  | &nbsp;&nbsp;&nbsp;58.18  | &nbsp;&nbsp;&nbsp;5150  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;5150  |
| &nbsp;&nbsp;&nbsp;Credila Financial Services (\*4) |  | &nbsp;&nbsp;&nbsp;1235349  | &nbsp;&nbsp;&nbsp;10.93  | &nbsp;&nbsp;&nbsp;135024  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;128092  | &nbsp;&nbsp;&nbsp;263116  |
| &nbsp;&nbsp;&nbsp;Shinhan Market-Frontier Fund Ⅲ |  | &nbsp;&nbsp;&nbsp;29058  | &nbsp;&nbsp;&nbsp;44.02  | &nbsp;&nbsp;&nbsp;12791  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;12791  |
| &nbsp;&nbsp;&nbsp;DB IPO HighYield Fund 1 |  | &nbsp;&nbsp;&nbsp;14974  | &nbsp;&nbsp;&nbsp;28.57  | &nbsp;&nbsp;&nbsp;4278  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;4278  |
| &nbsp;&nbsp;&nbsp;Exponential SQUARE Private Investment Trust No.1 |  | &nbsp;&nbsp;&nbsp;10215  | &nbsp;&nbsp;&nbsp;50.99  | &nbsp;&nbsp;&nbsp;5208  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;5208  |
| &nbsp;&nbsp;&nbsp;Fine North America Credit Private Mixed Asset Investment Trust 22 |  | &nbsp;&nbsp;&nbsp;7841  | &nbsp;&nbsp;&nbsp;58.82  | &nbsp;&nbsp;&nbsp;4613  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;4613  |
| &nbsp;&nbsp;&nbsp;IGIS Private Real Estate Investment No.454 |  | &nbsp;&nbsp;&nbsp;14010  | &nbsp;&nbsp;&nbsp;24.04  | &nbsp;&nbsp;&nbsp;3368  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;3368  |
| &nbsp;&nbsp;&nbsp;IGIS Private Real Estate Investment No.462 |  | &nbsp;&nbsp;&nbsp;6406  | &nbsp;&nbsp;&nbsp;69.20  | &nbsp;&nbsp;&nbsp;4433  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;4433  |
| &nbsp;&nbsp;&nbsp;BNW Recharge Private Equity Fund |  | &nbsp;&nbsp;&nbsp;33785  | &nbsp;&nbsp;&nbsp;21.13  | &nbsp;&nbsp;&nbsp;7138  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;7138  |

---

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**16. <u>Investments in associates (continued)</u>**

(d) The reconciliation of the financial information to the carrying amount of its interests in the associates as of December 31, 2025 and 2024 is as follows (continued):

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
| **Investees** |  | **Net assets**<br>**(a)** | **Ownership (%) (b)** | **Interests in the net assets**<br>**(a)\*(b)** | **Intra-group transactions** | **Others** | &nbsp;&nbsp;&nbsp;&nbsp;**Carrying**<br>**amount** |
| &nbsp;&nbsp;&nbsp;United Partners Realasset Fund No.14 | &nbsp;&nbsp;&nbsp;W | &nbsp;&nbsp;&nbsp;29994  | &nbsp;&nbsp;&nbsp;33.33  | &nbsp;&nbsp;&nbsp;9998  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;9998  |
| &nbsp;&nbsp;&nbsp;Shinhan Securities HIFI Bond SafeR 2Y Private Fund No.12 |  | &nbsp;&nbsp;&nbsp;359413  | &nbsp;&nbsp;&nbsp;5.00  | &nbsp;&nbsp;&nbsp;17977  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;17977  |
| &nbsp;&nbsp;&nbsp;Shinhan Securities HIFI Bond SafeR 2Y Private Fund No.13 |  | &nbsp;&nbsp;&nbsp;240733  | &nbsp;&nbsp;&nbsp;5.00  | &nbsp;&nbsp;&nbsp;12035  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;12035  |
| &nbsp;&nbsp;&nbsp;Shinhan Securities HIFI Bond SafeR 2Y Private Fund No.14 |  | &nbsp;&nbsp;&nbsp;274394  | &nbsp;&nbsp;&nbsp;5.00  | &nbsp;&nbsp;&nbsp;13711  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;13711  |
| &nbsp;&nbsp;&nbsp;Shinhan Securities HIFI Bond SafeR 2Y Private Fund No.15 |  | &nbsp;&nbsp;&nbsp;274919  | &nbsp;&nbsp;&nbsp;5.00  | &nbsp;&nbsp;&nbsp;13738  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;13738  |
| &nbsp;&nbsp;&nbsp;Shinhan Securities HIFI Bond SafeR 2Y Private Fund No.16 |  | &nbsp;&nbsp;&nbsp;265962  | &nbsp;&nbsp;&nbsp;5.00  | &nbsp;&nbsp;&nbsp;13290  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;13290  |
| &nbsp;&nbsp;&nbsp;Shinhan Securities HIFI Bond SafeR 2Y Private Fund No.17 |  | &nbsp;&nbsp;&nbsp;107536  | &nbsp;&nbsp;&nbsp;5.00  | &nbsp;&nbsp;&nbsp;5378  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;5378  |
| &nbsp;&nbsp;&nbsp;Shinhan Securities HIFI Bond SafeR 2Y Private Fund No.18 |  | &nbsp;&nbsp;&nbsp;218525  | &nbsp;&nbsp;&nbsp;5.00  | &nbsp;&nbsp;&nbsp;10925  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;10925  |
| &nbsp;&nbsp;&nbsp;Shinhan Securities HIFI Bond SafeR 2Y Private Fund No.19 |  | &nbsp;&nbsp;&nbsp;101018  | &nbsp;&nbsp;&nbsp;5.00  | &nbsp;&nbsp;&nbsp;5052  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;5052  |
| &nbsp;&nbsp;&nbsp;SH US Buyback&High Dividend Security Feeder Investment Trust(H)[Equity] |  | &nbsp;&nbsp;&nbsp;18761  | &nbsp;&nbsp;&nbsp;22.37  | &nbsp;&nbsp;&nbsp;4197  | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;4197  |

---

(\*1) Others represent the adjustments of fair value when acquired.

(\*2) Others represent fair value adjustment amounts recognized at the time of acquisition and cumulative losses that were not recognized due to the suspension of equity method accounting after the carrying amount of the investment account was reduced to zero as a result of accumulated deficits.

(\*3) Others represent adjustments resulting from the equity method not being applied to non-voting preferred shares issued by the investee.

(\*4) Others represent goodwill recognized at the time of acquisition.

(\*5) Others represent changes between the financial statements used for the external fair value valuation and those as of the end of the reporting period.

(\*6) Others represent cumulative unrecognized losses arising from the suspension of equity method accounting after the carrying amount of the investment account was reduced to zero due to accumulated deficits.

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**16. <u>Investments in associates (continued)</u>**

(e) The unrecognized equity method losses as of and for the years ended December 31, 2025 and 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  |  | &nbsp;&nbsp;&nbsp;**December 31, 2025** | &nbsp;&nbsp;&nbsp;**December 31, 2025** |
| **Investees** |  | &nbsp;&nbsp;&nbsp;**Unrecognized changes during the current period** | &nbsp;&nbsp;&nbsp;**Cumulative unrecognized equity method losses** |
| &nbsp;&nbsp;MIEL Co., Ltd. | W | - | (41) |
| &nbsp;&nbsp;Shinhan Global Healthcare Fund 1 |  | - | (153) |
| &nbsp;&nbsp;Shinhan Global Healthcare Fund 2 |  | - | (21) |
| &nbsp;&nbsp;Kiwoom Milestone Professional Private Real Estate Trust 19 |  | 1097  | (18409) |
| &nbsp;&nbsp;KIWOOM Real estate private placement fund for normal investors No. 31 |  | (44) | (44) |
| &nbsp;&nbsp;RIFA Real estate private placement fund for normal investors No. 51 |  | (11) | (11) |
| &nbsp;&nbsp;KB Distribution Private Real Estate 3-1 |  | (37) | (37) |
| &nbsp;&nbsp;Nomura-Rifa Private Real Estate Investment Trust 19 |  | (3520) | (3520) |
|  | W | (2515) | (22236) |

---

---

| | | | |
|:---|:---|:---|:---|
|  |  | &nbsp;&nbsp;&nbsp;**December 31, 2024** | &nbsp;&nbsp;&nbsp;**December 31, 2024** |
| **Investees** |  | &nbsp;&nbsp;&nbsp;**Unrecognized changes during the prior period** | &nbsp;&nbsp;&nbsp;**Cumulative unrecognized equity method losses** |
| &nbsp;&nbsp;MIEL Co., Ltd. | W | - | (41) |
| &nbsp;&nbsp;Shinhan Global Healthcare Fund 1 |  | - | (153) |
| &nbsp;&nbsp;Shinhan Global Healthcare Fund 2 |  | - | (21) |
| &nbsp;&nbsp;EDNCENTRAL Co., Ltd. |  | (4818) | (10495) |
| &nbsp;&nbsp;Kiwoom Milestone Professional Private Real Estate Trust 19 |  | (73) | (19506) |
|  | W | (4891) | (30216) |

---

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**17. <u>Investment properties</u>**

(a) Investment properties as of December 31, 2025 and 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  |  | **December 31, 2025** | **December 31, 2024** |
| Acquisition cost | W | 808759  | 495844  |
| Accumulated depreciation |  | (196398) | (168148) |
| Accumulated impairment losses |  | (741) | - |
| Carrying amount | W | 611620  | 327696  |

---

(b) Changes in investment properties for the years ended December 31, 2025 and 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  |  | **December 31, 2025** | **December 31, 2024** |
| Beginning balance | W | 327696  | 257806  |
| Acquisition |  | 80103  | 3582  |
| Disposal |  | (5507) | (1854) |
| Depreciation |  | (16922) | (15063) |
| Impairment loss recognized |  | (694) | - |
| Amounts transferred from property and equipment |  | 4829  | 77752  |
| Amounts transferred from (to) assets held for sale (\*) |  | (52138) | 5551  |
| Effects of foreign currency adjustments |  | 6279  | (78) |
| Effects of business combinations |  | 267974  | - |
| Ending balance | W | 611620  | 327696  |

---

(\*) Comprise buildings and land, etc.

(c) Income and expenses on investment property for the years ended December 31, 2025 and 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  |  | **December 31, 2025** | **December 31, 2024** |
| Rental income | W | 35,725  | 28,708 |
| &nbsp;&nbsp;Direct operating expenses for investment properties that generated rental income |  | 12,733  | 11,385 |

---

(d) Fair value of investment property

(ⅰ) The fair value of investment properties measured at cost as of December 31, 2025 and 2024 is as follows:

---

| | | | |
|:---|:---|:---|:---|
|  |  | **December 31, 2025** | **December 31, 2024** |
| Land and buildings | W | 1,160,058 | 741,547 |

---

(ⅱ) The valuation techniques and inputs used to measure the fair value of investment property as of December 31, 2025 and 2024 are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  |  | **December 31, 2025** | **December 31, 2024** | **Input variables** |
| Market approach | W | 875,056 | 741,547  | Comparable market transactions, Official land prices, etc. |
| Income approach |  | 285,002  | - | Rental income, Discount rate, etc. |
|  | W | 1,160,058 | 741,547  |  |

---

The fair value of investment property was determined based on valuations performed by an independent valuation firm with appropriate professional qualifications. Under the market approach, the valuation was derived using various market data, including recent market transactions of comparable properties with similar location, use, and scale, as well as official land prices. Under the income approach, the valuation was determined by discounting the expected future cash flows to be generated from the property using an appropriate discount rate. As significant unobservable inputs were used in these valuation processes, the fair value measurement is classified as Level 3 within the fair value hierarchy.

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**18. <u>Other assets</u>**

Other assets as of December 31, 2025 and 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  |  | **December 31, 2025** | **December 31, 2024** |
| Accounts receivable | W | 27441511  | 13611340  |
| Domestic exchange settlement debit |  | 11258959  | 4909780  |
| Guarantee deposits |  | 985307  | 982836  |
| Discounted present value |  | (51293) | (57626) |
| Accrued income |  | 3774852  | 3810267  |
| Prepaid expense |  | 393748  | 381091  |
| Provisional payments |  | 417246  | 411923  |
| Sundry assets |  | 250017  | 136079  |
| Advance payments |  | 671143  | 484828  |
| Leased assets |  | 1890090  | 2125379  |
| Others |  | 34087  | 180005  |
| Allowances for credit loss of other assets |  | (541316) | (574304) |
|  | W | 46524351  | 26401598  |

---

 **19. <u>Leases</u>**

(a) Gross investment and present value of minimum lease payment of finance lease as of December 31, 2025 and 2024 are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  |  | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** |
|  |  | **Gross investment** | **Unearned finance income** | &nbsp;&nbsp;**Present value of minimum lease payment** |
| &nbsp;&nbsp;&nbsp;&nbsp;Not later than 1 year | &nbsp;&nbsp;W | 718515  | 119989  | 598526  |
| &nbsp;&nbsp;&nbsp;&nbsp;1 ~ 2 years |  | 641935  | 73116  | 568819  |
| &nbsp;&nbsp;&nbsp;&nbsp;2 ~ 3 years |  | 442923  | 40645  | 402278  |
| &nbsp;&nbsp;&nbsp;&nbsp;3 ~ 4 years |  | 351421  | 16236  | 335185  |
| &nbsp;&nbsp;&nbsp;&nbsp;4 ~ 5 years |  | 243782  | 9503  | 234279  |
| Later than 5 years |  | 3926  | 9  | 3917  |
|  | &nbsp;&nbsp;W | 2402502  | 259498  | 2143004  |

---

(\*) Interest income on finance lease receivables recognized for the year ended December 31, 2025 is W 135,004 million.

---

| | | | | |
|:---|:---|:---|:---|:---|
|  |  | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
|  |  | **Gross investment** | **Unearned finance income** | &nbsp;&nbsp;**Present value of minimum lease payment** |
| &nbsp;&nbsp;&nbsp;&nbsp;Not later than 1 year | &nbsp;&nbsp;W | 655270  | 116496  | 538774  |
| &nbsp;&nbsp;&nbsp;&nbsp;1 ~ 2 years |  | 580993  | 75359  | 505634  |
| &nbsp;&nbsp;&nbsp;&nbsp;2 ~ 3 years |  | 520285  | 36203  | 484082  |
| &nbsp;&nbsp;&nbsp;&nbsp;3 ~ 4 years |  | 305670  | 13301  | 292369  |
| &nbsp;&nbsp;&nbsp;&nbsp;4 ~ 5 years |  | 217104  | 10347  | 206757  |
| Later than 5 years |  | 3858  | 11  | 3847  |
|  | &nbsp;&nbsp;W | 2283180  | 251717  | 2031463  |

---

(\*) Interest income on finance lease receivables recognized for the year ended December 31, 2024 is W 119,049 million.

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**19. <u>Leases (continued)</u>**

(b) Minimum lease payment receivable schedule for operating lease contracts of the Group as lessor as of December 31, 2025 and 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  |  | **Minimum lease payment** | **Minimum lease payment** |
|  |  | **December 31, 2025** | **December 31, 2024** |
| &nbsp;&nbsp;&nbsp;&nbsp;Not later than 1 year | &nbsp;&nbsp;W | 531124  | 585583 |
| &nbsp;&nbsp;&nbsp;&nbsp;1 ~ 2 years |  | 394824  | 455068  |
| &nbsp;&nbsp;&nbsp;&nbsp;2 ~ 3 years |  | 251163  | 313369  |
| &nbsp;&nbsp;&nbsp;&nbsp;3 ~ 4 years |  | 118738  | 169173  |
| &nbsp;&nbsp;&nbsp;&nbsp;4 ~ 5 years |  | 29081  | 52983  |
| Later than 5 years |  | 260  | 328 |
|  | &nbsp;&nbsp;W | 1325190  | 1576504 |

---

(c) Changes in operating lease assets for the years ended December 31, 2025 and 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  |  | **December 31, 2025** | **December 31, 2024** |
| &nbsp;&nbsp;&nbsp;&nbsp;Beginning balance  | &nbsp;&nbsp;W | 2123621  | 2077080  |
| Acquisition  |  | 504347  | 740721  |
| Disposal |  | (293222) | (228384) |
| Depreciation  |  | (445157) | (465716) |
| Amounts transferred from (to) property and equipment |  | (30) | (80) |
| &nbsp;&nbsp;&nbsp;&nbsp;Ending balance | &nbsp;&nbsp;W | 1889559  | 2123621  |

---

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**19. <u>Leases (continued)</u>**

(d) The details of the right-of-use assets by the lessee's underlying asset type as of December 31, 2025 and 2024 are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  |  | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** |
|  |  | **Acquisition cost**  | **Accumulated depreciation**  | &nbsp;&nbsp;**Carrying amount**  |
| &nbsp;&nbsp;&nbsp;&nbsp;Real estate | &nbsp;&nbsp;W | 1687919  | (952505) | 735414  |
| &nbsp;&nbsp;&nbsp;&nbsp;Vehicle |  | 56741  | (35619) | 21122  |
| &nbsp;&nbsp;&nbsp;&nbsp;Others |  | 37736  | (26245) | 11491  |
|  | &nbsp;&nbsp;W | 1782396  | (1014369) | 768027  |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  |  | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
|  |  | **Acquisition cost**  | **Accumulated depreciation**  | &nbsp;&nbsp;**Carrying amount**  |
| &nbsp;&nbsp;&nbsp;&nbsp;Real estate | &nbsp;&nbsp;W | 1621125  | (784200) | 836925  |
| &nbsp;&nbsp;&nbsp;&nbsp;Vehicle |  | 57737  | (31744) | 25993  |
| &nbsp;&nbsp;&nbsp;&nbsp;Others |  | 38803  | (26471) | 12332  |
|  | &nbsp;&nbsp;W | 1717665 | (842415) | 875250  |

---

(e) Changes in right-of-use assets for the years ended December 31, 2025 and 2024 are as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  |  | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** |
|  |  | **Real estate** | **Vehicle** | **Others** | **Total** |
| &nbsp;&nbsp;Beginning balance | W | 836925  | 25993  | 12332  | 875250  |
| Acquisition |  | 271932  | 13205  | 4729  | 289866  |
| Disposal |  | (57574) | (4788) | (757) | (63119) |
| Depreciation (\*) |  | (317022) | (13060) | (4853) | (334935) |
| &nbsp;&nbsp;Effects of foreign currency adjustments |  | 1153  | (232) | 40  | 961  |
| &nbsp;&nbsp;Effects of business combinations |  | - | 4  | - | 4  |
| &nbsp;&nbsp;Ending balance | W | 735414  | 21122  | 11491  | 768027  |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  |  | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
|  |  | **Real estate** | **Vehicle** | **Others** | **Total** |
| &nbsp;&nbsp;Beginning balance | W | 566941  | 28417  | 11117  | 606475  |
| Acquisition |  | 601686  | 15454  | 6963  | 624103  |
| Disposal |  | (40522) | (4222) | (708) | (45452) |
| Depreciation (\*) |  | (311077) | (13843) | (5026) | (329946) |
| Impairment loss recognized |  | 53 | - | - | 53 |
| &nbsp;&nbsp;Effects of foreign currency adjustments |  | 19844 | 187 | (14) | 20017 |
| &nbsp;&nbsp;Ending balance | W | 836925 | 25993 | 12332 | 875250 |

---

(\*) Included in general administrative expense, other operating expense and insurance service expense of the consolidated statements of comprehensive income.

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**19. <u>Leases (continued)</u>**

(f) The details of the maturity of the lease liability as of December 31, 2025 and 2024 are as follows:

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** |
|  |  | &nbsp;&nbsp;**1 month**<br>**or less** | **1 month ~**<br>**3 months** <br>**or less** | **3 months ~**<br>**6 months**<br>**or less** | **6 months ~**<br>**1 year**<br>**or less** | **1 year ~**<br>**5 years**<br>**or less** | **More than 5 years** | **Total** |
| &nbsp;&nbsp;Real estate | W | 32077  | 44129  | 63944  | 114686  | 401536  | 92509  | 748881  |
| Vehicle |  | 6899  | 2052  | 2933  | 5420  | 11432  | - | 28736  |
| Others |  | 767  | 633  | 1035  | 2376  | 7911  | - | 12722  |
|  | W | 39743  | 46814  | 67912  | 122482  | 420879  | 92509  | 790339  |

---

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
|  |  | &nbsp;&nbsp;**1 month**<br>**or less** | **1 month ~**<br>**3 months** <br>**or less** | **3 months ~**<br>**6 months**<br>**or less** | **6 months ~**<br>**1 year**<br>**or less** | **1 year ~**<br>**5 years**<br>**or less** | **More than 5 years** | **Total** |
| &nbsp;&nbsp;Real estate | W | 31623  | 45513  | 63760  | 128823  | 479432  | 95807  | 844958  |
| Vehicle |  | 6849  | 1687  | 2355  | 5578  | 15939  | 220  | 32628  |
| Others |  | 721  | 713  | 1325  | 2202  | 8142  | - | 13103  |
|  | W | 39193  | 47913  | 67440  | 136603  | 503513  | 96027  | 890689  |

---

(\*) The above amounts are based on undiscounted cash flows, and have been classified at the earliest maturity that the Group has the obligation to pay.

(g) The lease payments for low-value assets and short-term leases for the years ended December 31, 2025 and 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  |  | **December 31, 2025** | **December 31, 2024** |
| Low-value assets  | W | 5365  | 6287 |
| Short-term lease (\*) |  | 1484  | 975 |
| Total  | W | 6849  | 7262 |

---

(\*) The payments for leases with terms less than 1 month are included.

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

**20. <u>Assets Pledged as Collateral and Assets Held as Collateral</u>** 

(a) Assets pledged as collateral as of December 31, 2025 and 2024 are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  |  | &nbsp;&nbsp;&nbsp;&nbsp;**December 31, 2025** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**December 31, 2024** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Reasons for collateral** |
| Loans at amortized cost | W | - | 119699 | &nbsp;&nbsp;Pledge for borrowing transaction |
| Securities: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Securities at FVTPL |  | 12402270  | 14837334 | &nbsp;&nbsp;Customer RP, etc. |
| &nbsp;&nbsp;&nbsp;&nbsp; Securities at FVOCI |  | 13435175  | 10223916 | &nbsp;&nbsp;Borrowings, Settlement security for Bank of Korea, Borrowed securities, etc. |
| &nbsp;&nbsp;&nbsp;&nbsp; Securities at amortized cost |  | 21845620  | 1464788 | &nbsp;&nbsp;Borrowings, Settlement security for Bank of Korea, Customer RP, etc. |
|  |  | 47683065  | 26526038 |  |
| Deposits at amortized cost |  | 315986  | 1845022 | &nbsp;&nbsp;Borrowings, etc. |
| &nbsp;&nbsp;&nbsp;&nbsp;Property and Equipment <br>(real estate) |  | 3474  | 5515 | &nbsp;&nbsp; Establishing the right to collateral security, etc. |
|  | W | 48002525 | 28496274 |  |

---

(\*) The carrying amounts of assets pledged that the pledgees have the right to sell or re-pledge regardless of the Group's default as of December 31, 2025 and 2024 are W 13,374,326 million and W 13,579,738 million, respectively.

(b) As of December 31, 2025 and 2024, the fair value of securities held as collateral by the Group that may be sold or repledged, regardless of whether the pledgor defaults, amounted to W 3,607,427 million and W 5,676,715 million, respectively. The fair value of collateral sold or repledged amounted to W 1,606,806 million and W 1,339,757 million, respectively.

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**21. <u>Held for sale</u>**

(a) The details of non-current assets and liabilities held for sale.as of December 31, 2025 and 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  |  | **December 31, 2025** | **December 31, 2024** |
| Assets of disposal group classified as held for sale |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash and due from banks | W | 3310  | - |
| &nbsp;&nbsp;&nbsp;&nbsp;Property and equipment |  | 58340  | 29583  |
| &nbsp;&nbsp;&nbsp;&nbsp;Investment property |  | 9447  | - |
| &nbsp;&nbsp;&nbsp;&nbsp;Other assets held for sale |  | 115  | - |
|  |  | 71212  | 29583  |
| Liabilities of disposal group classified as held for sale |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Other liabilities |  | 1465  | - |
|  | W | 1465  | - |

---

During the year ended December 31, 2025, the Group entered into a share purchase agreement for the sale of all of its equity interests in Shinhan Securities America Inc. and classified the related assets of W 4,462 million and liabilities of W 1,465 million as assets of a disposal group classified as held for sale and liabilities of a disposal group classified as held for sale, respectively. In addition, the Group classified property and equipment and investment property that are highly probable to be sold within one year from the end of the reporting period as non-current assets held for sale.

(b) Cumulative gains and losses recognized in other comprehensive income (OCI)

As of December 31, 2025, cumulative gains and losses recognized in other comprehensive income in relation to non-current assets held for sale amount to W 2,798 million.

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

 **22. <u>Deposits</u>**

Deposits as of December 31, 2025 and 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  |  | **December 31, 2025** | **December 31, 2024** |
| Demand deposits: |  |  |  |
| Korean won | W | 146969815  | 134283019  |
| Foreign currencies |  | 25870958  | 25748740  |
|  |  | 172840773  | 160031759  |
| Time deposits: |  |  |  |
| Korean won |  | 202475134  | 202699097  |
| Foreign currencies |  | 35853116  | 33828393  |
|  |  | 238328250  | 236527490  |
| Certificates of deposits |  | 17001339  | 10409701  |
| Discount note deposits |  | 8921064  | 7624787  |
| CMA  |  | 4889093  | 4451561  |
| Others |  | 5668452  | 3735747  |
|  | W | 447648971  | 422781045  |

---

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**23. <u>Financial liabilities at fair value through profit or loss</u>**

Financial liabilities at fair value through profit or loss as of December 31, 2025 and 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  |  | **December 31, 2025** | **December 31, 2024** |
| Securities sold:  |  |  |  |
| Stocks | W | 11,360  | 640 |
| Bonds |  | 779,056  | 354,084 |
| Others |  | - | 3,117 |
|  |  | 790,416  | 357,841 |
| Gold/silver deposits |  | 1,522,071  | 597,058 |
|  | W | 2,312,487  | 954,899 |

---

**24. <u>Financial liabilities designated at fair value through profit or loss</u>**

(a) Financial liabilities designated at fair value through profit or loss as of December 31, 2025 and 2024 are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  |  | **December 31, 2025** | **December 31, 2024** | **Reason for designation** |
| &nbsp;&nbsp;Derivative-linked securities sold | W | 6090215  | 7959176  | Compound financial instrument |
| &nbsp;&nbsp;Debt securities issued  |  | 287849  | 261299  | Fair value measurement<br>and management |
|  | W | 6378064  | 8220475  |  |

---

&nbsp;&nbsp;&nbsp;&nbsp;(\*) The Group designated the financial liabilities at the initial recognition (or subsequently) in accordance with paragraph 6.7.1 of K-IFRS No. 1109 as financial liabilities at fair value through profit or loss.

Maximum credit risk exposure of the financial liabilities designated at fair value through profit or loss amounts to W 6,378,064 million as of December 31, 2025. Decrease in values of the liability due to credit risk changes is W 4,163 million for the year ended December 31, 2025 and the accumulated changes in values are W (-)6,163 million as of December 31, 2025.

(b) The difference between the carrying amount of financial liabilities designated at fair value through profit or loss and the amount required to be paid at contractual maturity as of December 31, 2025 and 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  |  | **December 31, 2025** | **December 31, 2024** |
| Expiration payment | W | 6140775  | 8001931 |
| Carrying amount |  | 6378064  | 8220475 |
| Difference from carrying amount | W | (237289) | (218544) |

---

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**25. <u>Borrowings</u>**

Borrowings as of December 31, 2025 and 2024 are as follows:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
|  | Interest<br>rate (%) |  | Amount | Interest<br>rate (%) |  | Amount |
| Borrowings denominated in Korean won: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Borrowings from Bank of Korea | 1.00~1.00 | &nbsp;&nbsp;W | 3574907  | 1.50~1.50 | W | 3106011 |
| &nbsp;&nbsp;&nbsp;&nbsp;Others | 0.00~5.22 |  | 21974367  | 0.00~5.72 |  | 23869254 |
|  |  |  | 25549274  |  |  | 26975265 |
| &nbsp;&nbsp;Borrowings denominated in foreign currencies: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Overdraft due from banks | 0.00~0.00 |  | 54293  | 0.00~0.00 |  | 30837 |
| &nbsp;&nbsp;&nbsp;&nbsp;Borrowings from banks | 0.00~19.50 |  | 10870815  | 0.00~16.25 |  | 7591181 |
| &nbsp;&nbsp;&nbsp;&nbsp;Others | 1.53~14.83 |  | 2545755  | 0.00~16.75 |  | 2713165 |
|  |  |  | 13470863  |  |  | 10335183 |
| &nbsp;&nbsp;Call money | 0.70~4.20 |  | 1437100  | 0.29~4.97 |  | 1197823 |
| &nbsp;&nbsp;Bill of sale | 0.00~2.79 |  | 11887  | 0.00~3.23 |  | 8872 |
| &nbsp;&nbsp;Bonds sold under repurchase agreements | 0.00~3.90 |  | 14988698  | 0.00~5.45 |  | 11542956 |
| &nbsp;&nbsp;Deferred origination costs |  |  | (62988) |  |  | (139726) |
|  |  | &nbsp;&nbsp;W | 55394834  |  | W | 49920373 |

---

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**26. <u>Debt securities issued</u>**

Debt securities issued as of December 31, 2025 and 2024 are as follows:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
|  | **Interest<br>rate (%)** |  | **Amount** | **Interest<br>rate (%)** |  | **Amount** |
| Debt securities issued in Korean won: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Debt securities issued | 1.43~9.50 | &nbsp;&nbsp;W | 72212922  | 1.00~9.50 | &nbsp;&nbsp;W | 72561043 |
| &nbsp;&nbsp;&nbsp;&nbsp;Subordinated debt securities issued | 2.20~5.20 |  | 3014773  | 2.20~5.20 |  | 2820105 |
| &nbsp;&nbsp;&nbsp;&nbsp;Gain on fair value hedges | &nbsp;&nbsp;- |  | (195980) | &nbsp;&nbsp;- |  | (188774) |
| &nbsp;&nbsp;&nbsp;&nbsp;Discount on debt securities issued | &nbsp;&nbsp;- |  | (94499) | &nbsp;&nbsp;- |  | (85489) |
|  |  |  | 74937216  |  |  | 75106885 |
| Debt securities issued in foreign <br> currencies: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Debt securities issued | 0.98~5.40 |  | 14012181  | 0.98~6.60 |  | 13979805 |
| &nbsp;&nbsp;Subordinated debt securities issued | 3.75~5.75 |  | 4186893  | 3.34~5.75 |  | 4995972 |
| &nbsp;&nbsp;&nbsp;&nbsp;Gain on fair value hedges | &nbsp;&nbsp;- |  | (87714) | &nbsp;&nbsp;- |  | (250628) |
| &nbsp;&nbsp;&nbsp;&nbsp;Discount on debt securities issued | &nbsp;&nbsp;- |  | (57154) | &nbsp;&nbsp;- |  | (66180) |
|  |  |  | 18054206  |  |  | 18658969 |
|  |  | &nbsp;&nbsp;W | 92991422  |  | &nbsp;&nbsp;W | 93765854 |

---

**27. <u>Defined benefit plans</u>**

The Group has operated a defined benefit plan and calculates defined benefit obligations based on the employee's pension compensation benefits and service period.

(a) Defined benefit plan assets and obligations as of December 31, 2025 and 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  |  | **December 31, 2025** | **December 31, 2024** |
| Present value of defined benefit obligations | W | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2313168  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2345148 |
| Fair value of plan assets |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2648445) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2461871) |
| &nbsp;&nbsp;Recognized liability (asset) for defined benefit obligations (\*) | W | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(335277) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(116723) |

---

(\*) The asset for defined benefit obligation of W 335,277 million as of December 31, 2025 is the net defined benefit assets of W 353,097 million less the net defined liabilities of W 17,820 million. In addition, the asset for defined benefit obligation of W 116,723 million as of December 31, 2024 is the net defined benefit assets of W 155,697 million less the net defined liabilities of W 38,974 million.

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**27. <u>Defined benefit plans (continued)</u>**

(b) Changes in the present value of defined benefit obligation and plan assets for the years ended December 31, 2025 and 2024 are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  |  | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** |
|  |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Defined benefit** <br>**obligation** | **Plan assets** | **Net defined benefit liabilities (assets)**  |
| Beginning balance | W | 2345148  | (2461871) | (116723) |
| Included in profit or loss (\*): |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Current service cost |  | 166534  | - | 166534  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Past service cost |  | 8624  | - | 8624  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net interest expense (income) |  | 96771  | (113722) | (16951) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Settlement loss (gain) |  | (893) | 8  | (885) |
|  |  | 271036  | (113714) | 157322  |
| &nbsp;&nbsp;Included in other comprehensive income: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Remeasurement loss (gain) |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- Actuarial losses(gains) arising from |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Demographic assumptions |  | (3913) | - | (3913) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Financial assumptions |  | (29812) | 2719  | (27093) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Experience adjustment |  | 28921  | - | 28921  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- Return on plan assets excluding interest income |  | - | 34682  | 34682  |
|  |  | (4804) | 37401  | 32597  |
| Other:  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Benefits paid by the plan |  | (298060) | 148422  | (149638) |
| &nbsp;&nbsp;&nbsp;&nbsp;Contributions paid into the plan |  | - | (258683) | (258683) |
| &nbsp;&nbsp;&nbsp;&nbsp;Settlement gains and losses |  | 188  | - | 188  |
| &nbsp;&nbsp;&nbsp;&nbsp;Changes in the scope of consolidation |  | (496) | - | (496) |
| &nbsp;&nbsp;&nbsp;&nbsp;Effect of changes in foreign exchange rates |  | 156  | - | 156  |
|  |  | (298212) | (110261) | (408473) |
| Ending balance | W | 2313168  | (2648445) | (335277) |

---

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**27. <u>Defined benefit plans (continued)</u>**

(b) Changes in the present value of defined benefit obligation and plan assets for the years ended December 31, 2025 and 2024 are as follows (continued):

---

| | | | | |
|:---|:---|:---|:---|:---|
|  |  | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
|  |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Defined benefit** <br>**obligation** | **Plan assets** | **Net defined benefit liabilities (assets)**  |
| Beginning balance | W | 2219490  | (2266248) | (46758) |
| Included in profit or loss (\*): |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Current service cost |  | 164062  | - | 164062  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Past service cost |  | (18613) | - | (18613) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net interest expense (income) |  | 107274  | (122178) | (14904) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Settlement loss (gain) |  | (1990) | 18 | (1972) |
|  |  | 250733 | (122160) | 128573 |
| &nbsp;&nbsp;Included in other comprehensive income: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Remeasurement loss (gain) |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- Actuarial losses(gains) arising from |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Demographic assumptions |  | (2338) | - | (2338) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Financial assumptions |  | 141583  | 2407  | 143990  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Experience adjustment |  | (121322) | - | (121322) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- Return on plan assets excluding interest income |  | 605 | 29966 | 30571 |
|  |  | 18528 | 32373 | 50901 |
| Other:  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Benefits paid by the plan |  | (143331) | 60606  | (82725) |
| &nbsp;&nbsp;&nbsp;&nbsp;Contributions paid into the plan |  | - | (166447) | (166447) |
| &nbsp;&nbsp;&nbsp;&nbsp;Gains or losses on settlement  |  | - | 5  | 5  |
| &nbsp;&nbsp;&nbsp;&nbsp;Effect of changes in foreign exchange rates |  | (272) | - | (272) |
|  |  | (143603) | (105836) | (249439) |
| Ending balance | W | 2345148 | (2461871) | (116723) |

---

(\*) Profit or loss related to defined benefit plans is all included in the general administrative expense.

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**27. <u>Defined benefit plans (continued)</u>**

(c) The composition of plan assets as of December 31, 2025 and 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  |  | **December 31, 2025** | **December 31, 2024** |
| Plan assets comprise: |  |  |  |
| &nbsp;&nbsp;&nbsp;Debt securities | W | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;42296  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;38634 |
| &nbsp;&nbsp;&nbsp;Due from banks |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1729816  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2046507 |
| &nbsp;&nbsp;&nbsp;Others |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;876333  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;376730 |
|  | W | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2648445  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2461871 |

---

(d) Actuarial assumptions as of December 31, 2025 and 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | **December 31, 2025** | **December 31, 2024** | **Description** |
| &nbsp;&nbsp;Discount rate | 3.81%~4.93% | 3.45%~4.66% | AA0 corporate bond yields |
| &nbsp;&nbsp;Future salary increase rate | 1.94%~5.96%<br>+ Upgrade rate | 1.94%~5.94%<br>+ Upgrade rate | Average for 5 years |
| &nbsp;&nbsp;Weighted average maturity | 4.98 years~<br>10.04 years | 5.00 years~<br>11.00 years |  |

---

(e) Sensitivity analysis

As of December 31, 2025 and 2024, reasonably possible changes in one of the relevant actuarial assumptions, holding other assumptions constant, would have affected the defined benefit obligation by the amounts shown below.

---

| | | | |
|:---|:---|:---|:---|
|  |  | **December 31, 2025** | **December 31, 2025** |
|  |  | **Defined benefit obligation** | **Defined benefit obligation** |
|  |  | Increase | Decrease |
| Discount rate (1%p movement) | W | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(183183) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;199684  |
| Future salary increase rate (1%p movement) |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;202468  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(191712) |

---

---

| | | | |
|:---|:---|:---|:---|
|  |  | **December 31, 2024** | **December 31, 2024** |
|  |  | **Defined benefit obligation** | **Defined benefit obligation** |
|  |  | Increase | Decrease |
| Discount rate (1%p movement) | W | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(180402) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;204053 |
| Future salary increase rate (1%p movement) |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;211736 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(190347) |

---

(f) The Group's estimated contribution is W 161,400 million as of December 31, 2026.

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**28. <u>Provisions</u>**

(a) Provisions as of December 31, 2025 and 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  |  | **December 31, 2025** | **December 31, 2024** |
| Asset retirement obligations | W | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;106125  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;99306 |
| Expected loss related to litigation |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;144173  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;114750 |
| Unused credit commitments |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;305955  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;411275 |
| Guarantee contracts issued |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;111307  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;104451 |
| &nbsp;&nbsp;Financial guarantee contracts issued |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;93693  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;87088 |
| &nbsp;&nbsp;Non-financial guarantee contracts issued |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17614  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17363 |
| Others (\*1), (\*2), (\*3) |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;695785  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;579114 |
|  | W | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1363345  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1308896 |

---

(\*1) As of December 31, 2025 and 2024, the Group recognizes a provision of W 305,237 million and W 317,857 million, respectively, an estimated amount which is highly probable to be paid for customer losses expected due to delays in redemption of Lime CI funds, etc.

(\*2) As of December 31, 2024, the Group recognizes a provision of W 25,856 million for vulnerable groups such as self-employed people, small business owners and institutions supporting vulnerable groups, etc. in accordance with the "Banking financial support plan for people's livelihood."

(\*3) As of December 31, 2025 and 2024, the Group recognizes a provision of W 8,643 million and W 19,086 million, respectively, for the estimated customer compensation amount related to equity-linked products based on the Hong Kong H-Index (Hang Seng China Enterprises Index).

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**28. <u>Provisions (continued)</u>**

(b) Changes in provision for unused credit commitments and financial guarantee contracts issued for the years ended December 31, 2025 and 2024 are as follows:

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** |
|  |  | &nbsp;&nbsp;**Unused credit commitments** | &nbsp;&nbsp;**Unused credit commitments** | &nbsp;&nbsp;**Unused credit commitments** | **Financial guarantee contracts issued** | **Financial guarantee contracts issued** | **Financial guarantee contracts issued** | **Total** |
|  |  | &nbsp;&nbsp;**12-month expected<br>credit losses** | **Lifetime expected<br>credit losses** | &nbsp;&nbsp;**Impaired** <br>**financial asset** | **12-month expected credit losses** | **Lifetime expected<br>credit losses** | **Impaired financial asset** | **Total** |
| &nbsp;&nbsp;&nbsp;Beginning balance | &nbsp;&nbsp;&nbsp;&nbsp;W | 229415  | 88843  | 93017  | 80780  | 6296  | 12  | 498363  |
| &nbsp;&nbsp;&nbsp;Transfer (from) to 12-month expected credit losses |  | 48121  | (47999) | (122) | 1420  | (1420) | - | - |
| &nbsp;&nbsp;&nbsp;Transfer (from) to lifetime expected credit losses |  | (13183) | 13237  | (54) | (3336) | 3336  | - | - |
| &nbsp;&nbsp;&nbsp;Transfer (from) to impaired financial asset |  | (767) | (972) | 1739  | - | - | - | - |
| &nbsp;&nbsp;&nbsp;Provided (reversed) |  | (50312) | 40278  | (91457) | (3308) | (1077) | (3) | (105879) |
| &nbsp;&nbsp;&nbsp;Change in foreign exchange rate |  | (3089) | (445) | - | (333) | (154) | 1  | (4020) |
| Other (\*) |  | (295) | - | - | 6915  | 4573  | (9) | 11184  |
| &nbsp;&nbsp;&nbsp;Ending balance | W | 209890  | 92942  | 3123  | 82138  | 11554  | 1  | 399648  |

---

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**28. <u>Provisions (continued)</u>**

(b) Changes in provision for unused credit commitments and financial guarantee contracts issued for the years ended December 31, 2025 and 2024 are as follows (continued):

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
|  |  | &nbsp;&nbsp;**Unused credit commitments** | &nbsp;&nbsp;**Unused credit commitments** | &nbsp;&nbsp;**Unused credit commitments** | **Financial guarantee contracts issued** | **Financial guarantee contracts issued** | **Financial guarantee contracts issued** | **Total** |
|  |  | &nbsp;&nbsp;**12-month expected<br>credit losses** | **Lifetime expected<br>credit losses** | &nbsp;&nbsp;**Impaired** <br>**financial asset** | **12-month expected credit losses** | **Lifetime expected<br>credit losses** | **Impaired financial asset** | **Total** |
| &nbsp;&nbsp;&nbsp;Beginning balance | &nbsp;&nbsp;&nbsp;&nbsp;W | 206687  | 129182  | 19722  | 32002  | 7590  | 406  | 395589  |
| &nbsp;&nbsp;&nbsp;Transfer (from) to 12-month expected credit losses |  | 68071 | (67931) | (140) | 4968  | (4968) | - | - |
| &nbsp;&nbsp;&nbsp;Transfer (from) to lifetime expected credit losses |  | (11698) | 11723  | (25) | (366) | 366  | - | - |
| &nbsp;&nbsp;&nbsp;Transfer (from) to impaired financial asset |  | (806) | (1561) | 2367  | - | - | - | - |
| &nbsp;&nbsp;&nbsp;Provided (reversed) |  | (40306) | 16043  | 71093  | (3783) | (1139) | 2  | 41910  |
| &nbsp;&nbsp;&nbsp;Change in foreign exchange rate |  | 5340 | 1347  | - | 2316  | 791  | 1  | 9795  |
| Other (\*) |  | 2127 | 40 | - | 45643 | 3656 | (397) | 51069 |
| &nbsp;&nbsp;&nbsp;Ending balance | W | 229415 | 88843 | 93017 | 80780 | 6296 | 12 | 498363 |

---

(\*) Includes the effects of new financial guarantee contracts initially measured at fair value, expirations of such contracts, and changes in discount rates, among others.

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**28. <u>Provisions (continued)</u>**

(c) Changes in provisions for the years ended December 31, 2025 and 2024 are as follows:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  |  | &nbsp;&nbsp;**December 31, 2025** | &nbsp;&nbsp;**December 31, 2025** | &nbsp;&nbsp;**December 31, 2025** | &nbsp;&nbsp;**December 31, 2025** | &nbsp;&nbsp;**December 31, 2025** |
|  |  | &nbsp;&nbsp;**Asset** <br>**retirement** | &nbsp;&nbsp;**Litigation** | &nbsp;&nbsp;**Guarantee** | &nbsp;&nbsp;**Other** | &nbsp;&nbsp;**Total** |
| &nbsp;&nbsp;&nbsp;&nbsp;Beginning balance | &nbsp;&nbsp;&nbsp;&nbsp;W | 99306  | 114750  | 17363  | 579114  | 810533  |
| &nbsp;&nbsp;&nbsp;Provision (reversal) |  | 6739  | 26032  | 404  | 315971  | 349146  |
| &nbsp;&nbsp;&nbsp;Provision used |  | (3363) | (69713) | - | (131149) | (204225) |
| &nbsp;&nbsp;&nbsp;Change in foreign<br>exchange rate |  | - | - | (245) | 166  | (79) |
| &nbsp;&nbsp;&nbsp;Other (\*) |  | 3443  | 73104  | 92  | (68317) | 8322  |
| &nbsp;&nbsp;&nbsp;&nbsp;Ending balance | W | 106125  | 144173  | 17614  | 695785  | 963697  |

---

(\*) During the year ended December 31, 2025, W 72,868 million of other provisions related to Shinhan Asset Trust Co., Ltd. were reclassified to provisions for litigation. The amount includes increases in the carrying amount of provisions from unwinding of the discount and changes in discount rates.

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  |  | &nbsp;&nbsp;**December 31, 2024** | &nbsp;&nbsp;**December 31, 2024** | &nbsp;&nbsp;**December 31, 2024** | &nbsp;&nbsp;**December 31, 2024** | &nbsp;&nbsp;**December 31, 2024** |
|  |  | &nbsp;&nbsp;**Asset** <br>**retirement** | &nbsp;&nbsp;**Litigation** | &nbsp;&nbsp;**Guarantee** | &nbsp;&nbsp;**Other** | &nbsp;&nbsp;**Total** |
| &nbsp;&nbsp;&nbsp;&nbsp;Beginning balance | &nbsp;&nbsp;&nbsp;&nbsp;W | 99927  | 31371  | 23163  | 819616  | 974077  |
| &nbsp;&nbsp;&nbsp;Provision (reversal) |  | 957  | 83862 | (8471) | 293407 | 369755  |
| &nbsp;&nbsp;&nbsp;Provision used |  | (7282) | (483) | - | (533232) | (540997) |
| &nbsp;&nbsp;&nbsp;Change in foreign<br>exchange rate |  | - | - | 2412 | (483) | 1929 |
| &nbsp;&nbsp;&nbsp;Other (\*) |  | 5704  | - | 259 | (194) | 5769 |
| &nbsp;&nbsp;&nbsp;&nbsp;Ending balance | W | 99306  | 114750 | 17363 | 579114 | 810533 |

---

(\*) Includes increases in provisions due to the unwinding of discount and the effects of changes in discount rates, among others.

(d) Asset retirement obligation liabilities represent the estimated cost to restore the existing leased properties which is discounted to the present value using the appropriate discount rate at the end of the reporting period. Disbursements of such costs are expected to incur at the end of lease contract. Such costs are reasonably estimated using the average lease year and the average restoration expenses. The average lease year is calculated based on the past ten-year historical data of the expired leases. The average restoration expense is calculated based on the actual costs incurred for the past three years using the three-year average inflation rate.

(e) Allowance for guarantees and acceptances as of December 31, 2025 and 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  |  | **December 31, 2025** | **December 31, 2024** |
| Outstanding guarantees and acceptances  | W | &nbsp;&nbsp;&nbsp;&nbsp;18642539  | &nbsp;&nbsp;&nbsp;&nbsp;15315381 |
| Contingent guarantees and acceptances |  | &nbsp;&nbsp;&nbsp;&nbsp;4917473  | &nbsp;&nbsp;&nbsp;&nbsp;5068782 |
| ABS and ABCP purchase commitments |  | &nbsp;&nbsp;&nbsp;&nbsp;2649382  | &nbsp;&nbsp;&nbsp;&nbsp;2123665 |
| Endorsed bill |  | &nbsp;&nbsp;&nbsp;&nbsp;12574  | &nbsp;&nbsp;&nbsp;&nbsp;1367  |
|  | W | &nbsp;&nbsp;&nbsp;&nbsp;26221968  | &nbsp;&nbsp;&nbsp;&nbsp;22509195 |
| &nbsp;&nbsp;Allowance for loss on guarantees and acceptances | W | &nbsp;&nbsp;&nbsp;&nbsp;111307  | &nbsp;&nbsp;&nbsp;&nbsp;104451 |
| &nbsp;&nbsp;Ratio | % | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0.42  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0.46 |

---

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**29. <u>Insurance contract liabilities</u>**

(a) The details of insurance contract liabilities as of December 31, 2025 and 2024 are as follows:

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** |
|  |  | **Life insurance** | **Life insurance** | **Life insurance** | **Life insurance** | **Life insurance** | **Non-life insurance** | **Non-life insurance** | **Non-life insurance** |  |
|  |  | **Death**  | **Health** | **Pension Savings** | **Variable** | **Complex** | **Long-term** | **General** | **Automobile** | **Total** |
| Insurance contract assets | W | - | - | - | - | - | (760) | - | - | (760) |
| Insurance contract liabilities |  | 20174773  | 5081797  | 19060216  | 5984497  | - | 433  | 168767  | 820  | 50471303  |
| &nbsp;&nbsp;&nbsp;Net insurance contract liabilities (assets) total |  | 20174773  | 5081797  | 19060216  | 5984497  | - | (327) | 168767  | 820  | 50470543  |
| Reinsurance contract assets |  | - | - | - | - | 494226  | 241  | 108975  | - | 603442  |
| Reinsurance contract liabilities |  | (24641) | (31737) | - | - | - | - | - | - | (56378) |
| &nbsp;&nbsp;&nbsp;Total net reinsurance contract assets (liabilities) | W | (24641) | (31737) | - | - | 494226  | 241  | 108975  | - | 547064  |

---

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
|  |  | **Life insurance** | **Life insurance** | **Life insurance** | **Life insurance** | **Life insurance** | **Non-life insurance** | **Non-life insurance** | **Non-life insurance** |  |
|  |  | **Death**  | **Health** | **Pension Savings** | **Variable** | **Complex** | **Long-term** | **General** | **Automobile** | **Total** |
| Insurance contract assets | W | - | - | - | - | - | (1051) | (4588) | - | (5639) |
| Insurance contract liabilities |  | 20021186 | 5556614 | 20227829 | 5157827 | - | - | 160346 | 1189 | 51124991 |
| &nbsp;&nbsp;&nbsp;Net insurance contract liabilities (assets) total |  | 20021186 | 5556614 | 20227829 | 5157827 | - | (1051) | 155758 | 1189 | 51119352 |
| Reinsurance contract assets |  | - | - | - | - | 107668 | 21 | 77065 | - | 184754 |
| Reinsurance contract liabilities |  | (26214) | (71844) | - | - | - | - | (5) | - | (98063) |
| &nbsp;&nbsp;&nbsp;Total net reinsurance contract assets (liabilities) | W | (26214) | (71844) | - | - | 107668 | 21 | 77060 | - | 86691 |

---

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**29. <u>Insurance contract liabilities (continued)</u>**

(b) The assumptions and calculation basis for the current estimates of future cash flows applied to the holding contract as of December 31, 2025 and 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | **Assumption value (%)** | **Assumption value (%)** | **Basis for calculation** |
|  | **December 31, 2025** | **December 31, 2024** | **Basis for calculation** |
| **Life insurance:** |  |  |  |
| &nbsp;&nbsp;Lapse ratio | 0.00 ~ 66.77 | 0.00 ~ 69.75 | &nbsp;&nbsp;&nbsp;- The ratio of surrendered contract amounts to the retained contract amounts, calculated based on statistics, by premium payment type, product group, interest rate category, payment term (zero/low-surrender-value insurance products), and duration<br>- For zero/low-surrender-value insurance products, the lapse ratio for the period when there is insufficient experience statistics is calculated, using the log-linear regression model, so that it converges to 0.1% at the time of completion of premium payments. |
| &nbsp;&nbsp;Loss ratio | 3.16 ~ 1787.70 | 8.00 ~ 316.00 | &nbsp;&nbsp;&nbsp;- Other than general mortality: the ratio of accident claims to insurance premiums to on-level risk insurance premiums by risk coverage and elapsed period based on the last five years' experience statistics |
|  | 3.16 ~ 1787.70 | 8.00 ~ 316.00 | &nbsp;&nbsp;&nbsp;- General mortality: the ratio of actual mortality rate to expected mortality rate by risk coverage and elapsed period based on the last five years' experience statistics |
| &nbsp;&nbsp;Operating Expense ratio | - | - | &nbsp;&nbsp;&nbsp;- Calculate unit costs such as performance, agent commissions, number of new/retained contracts, initial/continuing premiums, reserve funds, etc. based on a business plan (budget) incorporating future operating expense policies based on recent experience statistics. |
| &nbsp;&nbsp;Discount rate | 2.79 ~ 4.59 | 2.31 ~ 4.55 | &nbsp;&nbsp;&nbsp;- Disclosure standard interest rate term structure provided by the Financial Supervisory Service |
| &nbsp;&nbsp;The confidence level for the risk adjustments regarding non-financial | 75.00 | 75.00 | &nbsp;&nbsp;&nbsp;- The risk adjustment is calculated as the portion of 75th percentile exceeding the probability-weighted average of the present value of future cash flows, assuming that the probability distribution of the present value of future cash flows follows a normal distribution at each reporting date. |

---

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**29. <u>Insurance contract liabilities (continued)</u>**

(b) The assumptions and calculation basis for the current estimates of future cash flows applied to the holding contract as of December 31, 2025 and 2024 are as follows (continued):

---

| | | | |
|:---|:---|:---|:---|
|  | **Assumption value (%)** | **Assumption value (%)** | **Basis for calculation** |
|  | **December 31, 2025** | **December 31, 2024** | **Basis for calculation** |
| **Non-life insurance:** |  |  |  |
| &nbsp;&nbsp;Lapse ratio | -General: Not Applicable | -General: 0.00 ~ 52.76 | <br>- Not applicable based on the results of the current period impact analysis, as the remaining maturity of the retained contracts is less than one year. |
| &nbsp;&nbsp;Lapse ratio | -Long-term: 0.12 ~ 25.47 | -Long-term: 1.60 ~ 25.47 | <br>- Used the company's entire historical experience data (Oct. 2017 - June 2025). For segments with insufficient data, pricing assumptions from product development or industry statistics from the Korea Insurance Development Institute (KIDI) were applied.<br>-Calculated as the ratio of lapses and surrender to the number of retained contracts.<br>-Categorized by payment method, product group, channel, and payment period (including zero/low-surrender value products). |
| &nbsp;&nbsp;Loss ratio | General: 12.43 ~ 66.91 | General: 12.98 ~ 81.54 | <br>- Used the last 7 years of empirical statistics (July 2018 - June 2025).<br>- Calculated as the ratio of incurred losses to earned premiums.<br>- Categorized by portfolio. |
|  | Long-term: 44.62 ~ 281.80 | Long-term: 36.81 ~ 422.10 | <br>- Used the company's entire historical experience data (Oct. 2017 - June 2025). For segments with insufficient data, industry statistics from the Korea Insurance Development Institute (KIDI) were applied.<br>- Calculated as the ratio of incurred losses to risk premiums.<br>- Categorized by risk coverage. Loss ratios by age were not applied due to the lack of segments with sufficient statistical reliability or significance for age-based classification. |

---

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**29. <u>Insurance contract liabilities (continued)</u>**

(b) The assumptions and calculation basis for the current estimates of future cash flows applied to the holding contract as of December 31, 2025 and 2024 are as follows (continued):

---

| | | | |
|:---|:---|:---|:---|
|  | **Assumption value (%)** | **Assumption value (%)** | **Basis for calculation** |
|  | **December 31, 2025** | **December 31, 2024** | **Basis for calculation** |
| &nbsp;&nbsp;Operating Expense ratio | - | - | &nbsp;&nbsp;&nbsp;- Used empirical statistics for the most recent one-year period (July 2024 – June 2025).<br>-Estimated by incorporating business plan assumptions into the ratio of actual operating expenses to cost drivers.<br>-Estimated separately by categorizing expenses into acquisition costs, maintenance costs, and claim investigation expenses.<br>-Acquisition costs: Allocated based on Annualized Premium Equivalent (APE) and the number of new contracts.<br>-Maintenance costs: Allocated based on earned premiums and the number of in-force contracts.<br>-Claim investigation expenses: Allocated in proportion to incurred losses. |
| &nbsp;&nbsp;Discount rate | Deterministic discount rate: <br>2.79 ~ 4.30 | Deterministic discount rate: 2.31 ~ 4.55 | -Term structure of interest rates provided by the Financial Supervisory Service. |
| &nbsp;&nbsp;&nbsp;&nbsp;The confidence level for non-financial risks | 75.00 | 75.00 | &nbsp;&nbsp;&nbsp;-The risk adjustment is calculated as the portion of 75th percentile exceeding the<br>probability-weighted average of the present value of future cash flows, assuming<br>that the probability distribution of the present value of future cash flows follows a <br>normal distribution at each reporting date. |

---

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**29. <u>Insurance contract liabilities (continued)</u>**

(c) Changes in the remaining coverage and incurred claim components of net insurance contract liabilities for which the premium allocation approach is not applied for the years ended December 31, 2025 and 2024 are as follows:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  |  |  | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** |
|  |  |  | Remaining coverage components | Remaining coverage components | Incurred claim component | Total |
|  |  |  | Excluding loss component | Loss component | Incurred claim component | Total |
| &nbsp;&nbsp;&nbsp;Beginning balance | Insurance contract assets | W | (1266) | - | 215  | (1051) |
|  | Insurance contract liabilities |  | 48154718  | 993409  | 1814915  | 50963042  |
|  | Net insurance contract liabilities |  | 48153452  | 993409  | 1815130  | 50961991  |
| &nbsp;&nbsp;&nbsp;Insurance income | Retroactive modification method |  | (1252936) | - | - | (1252936) |
|  | Fair value method |  | (955369) | - | - | (955369) |
|  | Other |  | (1054075) | - | - | (1054075) |
|  |  |  | (3262380) | - | - | (3262380) |
| &nbsp;&nbsp;&nbsp;Insurance service expenses | &nbsp;&nbsp;&nbsp;&nbsp;Incurred claims and other incurred insurance service expenses |  | - | - | 1829232  | 1829232  |
|  | Changes in liabilities for incurred claims |  | - | - | (26729) | (26729) |
|  | Losses on onerous contracts |  | - | 4135  | - | 4135  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;Amortization of insurance acquisition cash flows |  | 422286  | - | - | 422286  |
|  | Other |  | (9198) | (18287) | - | (27485) |
|  |  |  | 413088  | (14152) | 1802503  | 2201439  |
| Investment components and insurance premium refund | Investment components and insurance premium refund |  | (4557494) | - | 4557494  | - |
| &nbsp;&nbsp;&nbsp;Insurance finance income and expenses | Profit or loss |  | 2769151  | 21373  | 62008  | 2852532  |
|  | Other comprehensive income |  | (1723260) | (25851) | 517  | (1748594) |
|  |  | W | 1045891  | (4478) | 62525  | 1103938  |

---

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**29. <u>Insurance contract liabilities (continued)</u>**

(c)Changes in the remaining coverage and incurred claim components of net insurance contract liabilities for which the premium allocation approach is not applied for the years ended December 31, 2025 and 2024 are as follows (continued):

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  |  |  | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** |
|  |  |  | Remaining coverage components | Remaining coverage components | Incurred claim component | Total |
|  |  |  | Excluding loss component | Loss component | Incurred claim component | Total |
| &nbsp;&nbsp;&nbsp;Cash flows for the period | Insurance premium received | W | 7797683  | - | - | 7797683  |
|  | Insurance acquisition cash flows paid |  | (2062604) | - | - | (2062604) |
|  | &nbsp;&nbsp;&nbsp;&nbsp;Insurance claims and other insurance service expenses paid |  | (6178) | - | (1740328) | (1746506) |
|  | &nbsp;&nbsp;Receipt (payment) of investment components and refund of insurance premiums |  | - | - | (4693623) | (4693623) |
|  |  |  | 5728901  | - | (6433951) | (705050) |
| Other increases (decreases) | Other increases (decreases) |  | 30  | (160) | (3) | (133) |
| &nbsp;&nbsp;&nbsp;Ending balance | Insurance contract assets |  | (1672) | - | 912  | (760) |
|  | &nbsp;&nbsp;&nbsp;&nbsp;Insurance contract liabilities |  | 47523160  | 974619  | 1802786  | 50300565  |
|  | Net insurance contract liabilities | W | 47521488  | 974619  | 1803698  | 50299805  |

---

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**29. <u>Insurance contract liabilities (continued)</u>**

(c) Changes in the remaining coverage and incurred claim components of net insurance contract liabilities for which the premium allocation approach is not applied for the years ended December 31, 2025 and 2024 are as follows (continued):

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  |  |  | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
|  |  |  | Remaining coverage components | Remaining coverage components | Incurred claim component | Total |
|  |  |  | Excluding loss component | Loss component | Incurred claim component | Total |
| &nbsp;&nbsp;&nbsp;Beginning balance | Insurance contract assets | W | (493) | - | 49 | (444) |
|  | Insurance contract liabilities |  | 45517567 | 884042  | 1827957  | 48229566  |
|  | Net insurance contract liabilities |  | 45517074 | 884042  | 1828006  | 48229122  |
| &nbsp;&nbsp;&nbsp;Insurance income | Retroactive modification method |  | (1354769) | - | - | (1354769) |
|  | Fair value method |  | (968200) | - | - | (968200) |
|  | Other |  | (730549) | 1501  | 18  | (729030) |
|  |  |  | (3053518) | 1501  | 18  | (3051999) |
| &nbsp;&nbsp;&nbsp;Insurance service expenses | &nbsp;&nbsp;&nbsp;&nbsp;Incurred claims and other incurred insurance service expenses |  | - | - | 1646968  | 1646968  |
|  | Changes in liabilities for incurred claims |  | - | - | 28182  | 28182  |
|  | &nbsp;&nbsp;Losses on onerous contracts and reversals |  | - | 67934  | - | 67934  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;Amortization of insurance acquisition cash flows |  | 360411 | - | - | 360411 |
|  | Other |  | (28208) | (20122) | - | (48330) |
|  |  |  | 332203 | 47812  | 1675150  | 2055165  |
| Investment components and insurance premium refund | Investment components and insurance premium refund |  | (4769963) | - | 4769963 | - |
| &nbsp;&nbsp;&nbsp;Insurance finance income and expenses | Profit or loss |  | 1697955 | 17375  | 63930  | 1779260  |
|  | Other comprehensive income |  | 3125467 | 42685  | 3306  | 3171458  |
|  |  | W | 4823422 | 60060  | 67236  | 4950718  |

---

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**29. <u>Insurance contract liabilities (continued)</u>**

(c) Changes in the remaining coverage and incurred claim components of net insurance contract liabilities for which the premium allocation approach is not applied for the years ended December 31, 2025 and 2024 are as follows (continued):

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  |  |  | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
|  |  |  | Remaining coverage components | Remaining coverage components | Incurred claim component | Total |
|  |  |  | Excluding loss component | Loss component | Incurred claim component | Total |
| &nbsp;&nbsp;&nbsp;Cash flows for the period | Insurance premium received | W | 6897049 | - | - | 6897049 |
|  | Insurance acquisition cash flows paid |  | (1586104) | - | - | (1586104) |
|  | &nbsp;&nbsp;&nbsp;&nbsp;Insurance claims and other insurance service expenses paid |  | (6708) | - | (1583846) | (1590554) |
|  | &nbsp;&nbsp;&nbsp;&nbsp;Receipt (payment) of investment components and refund of insurance premiums |  | - | - | (4941397) | (4941397) |
|  |  |  | 5304237 | - | (6525243) | (1221006) |
| Other increases (decreases) | Other increases (decreases) |  | (3) | (6) | - | (9) |
| &nbsp;&nbsp;&nbsp;Ending balance | Insurance contract assets |  | (1266) | - | 215 | (1051) |
|  | Insurance contract liabilities |  | 48154718 | 993409 | 1814915 | 50963042 |
|  | Net insurance contract liabilities | W | 48153452 | 993409 | 1815130 | 50961991 |

---

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**29. <u>Insurance contract liabilities (continued)</u>**

(d) Changes in the remaining coverage and incurred claim components of net insurance contract liabilities, applying the premium allocation approach for the years ended December 31, 2025 and 2024, are as follows:

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  |  | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** |
|  |  |  | Remaining coverage components | Remaining coverage components | Incurred claim component | Risk adjustment for non-financial risks | Total |
|  |  |  | Excluding loss component | Loss component | Present value estimate of future cash flows | Risk adjustment for non-financial risks | Total |
| &nbsp;&nbsp;&nbsp;Beginning balance | Insurance contract assets | W | (6506) | - | 1894  | 24  | (4588) |
|  | Insurance contract liabilities |  | 135670  | 2579  | 21756  | 1944  | 161949  |
|  | Net insurance contract liabilities |  | 129164  | 2579  | 23650  | 1968  | 157361  |
| &nbsp;&nbsp;&nbsp;Insurance income |  |  | (101942) | - | - | - | (101942) |
| &nbsp;&nbsp;&nbsp;Insurance service expenses | &nbsp;&nbsp;&nbsp;&nbsp;Incurred claims and other incurred insurance service expenses |  | 537  | - | 83752  | 2475  | 86764  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;Changes in liabilities for incurred claims |  | - | - | 8901  | (552) | 8349  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;Losses on onerous contracts and reversals |  | 742  | 2693  | - | - | 3435  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;Amortization of insurance acquisition cash flows |  | 21827  | - | - | - | 21827  |
|  |  |  | 23106  | 2693  | 92653  | 1923  | 120375  |
| Investment components and insurance premium refund | Investment components and insurance premium refund |  | (223) | - | 223  | - | - |
| &nbsp;&nbsp;&nbsp;Insurance finance income and expenses | Profit or loss |  | 5140  | - | 253  | 57  | 5450  |
|  | Other comprehensive income |  | - | - | (27) | (6) | (33) |
|  |  |  | 5140  | - | 226  | 51  | 5417  |
| &nbsp;&nbsp;&nbsp;Cash flows for the period | &nbsp;&nbsp;&nbsp;&nbsp;Insurance premium received |  | 106466  | - | - | - | 106466  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;Insurance acquisition cash flows paid |  | (26637) | - | - | - | (26637) |
|  | &nbsp;&nbsp;&nbsp;&nbsp;Insurance claims and other insurance service expenses paid |  | - | - | (90081) | - | (90081) |
|  | &nbsp;&nbsp;&nbsp;&nbsp;Receipt (payment) of investment components and refund of insurance premiums |  | - | - | (221) | - | (221) |
|  |  |  | 79829  | - | (90302) | - | (10473) |
| &nbsp;&nbsp;&nbsp;Other increases (decreases) |  |  | - | - | 2  | (2) | - |
| &nbsp;&nbsp;&nbsp;Ending balance | Insurance contract assets |  | - | - | - | - | - |
|  | Insurance contract liabilities |  | 135074  | 5272  | 26452  | 3940  | 170738  |
|  | Net insurance contract liabilities | W | 135074  | 5272  | 26452  | 3940  | 170738  |

---

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**29. <u>Insurance contract liabilities (continued)</u>**

(d) Changes in the remaining coverage and incurred claim components of net insurance contract liabilities, applying the premium allocation approach for the years ended December 31, 2025 and 2024, are as follows (continued):

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  |  | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
|  |  |  | Remaining coverage components | Remaining coverage components | Incurred claim component | Risk adjustment for non-financial risks | Total |
|  |  |  | Excluding loss component | Loss component | Present value estimate of future cash flows | Risk adjustment for non-financial risks | Total |
| &nbsp;&nbsp;&nbsp;Beginning balance | Insurance contract assets | W | (10670) | 3 | 450 | 7 | (10210) |
|  | Insurance contract liabilities |  | 88524  | 4815 | 10340 | 987 | 104666 |
|  | Net insurance contract liabilities |  | 77854  | 4818 | 10790 | 994 | 94456 |
| &nbsp;&nbsp;&nbsp;Insurance income |  |  | (64554) | - | - | - | (64554) |
| &nbsp;&nbsp;&nbsp;Insurance service expenses | &nbsp;&nbsp;&nbsp;&nbsp;Incurred claims and other incurred insurance service expenses |  | 45 | - | 61148 | 528 | 61721 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;Changes in liabilities for incurred claims |  | - | - | 3209 | 421 | 3630 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;Losses on onerous contracts |  | 54 | (2239) | - | - | (2185) |
|  | &nbsp;&nbsp;&nbsp;&nbsp;Amortization of insurance acquisition cash flows |  | 13238 | - | - | - | 13238 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;Other |  | - | - | (9) | - | (9) |
|  |  |  | 13337 | (2239) | 64348 | 949 | 76395 |
| Investment components and insurance premium refund | Investment components and insurance premium refund |  | (2) | - | 2 | - | - |
| &nbsp;&nbsp;&nbsp;Insurance finance income and expenses | Profit or loss |  | 4363 | - | 162 | 17 | 4542 |
|  | Other comprehensive income |  | - | - | 22 | 6 | 28 |
|  |  |  | 4363 | - | 184 | 23 | 4570 |
| &nbsp;&nbsp;&nbsp;Cash flows for the period | &nbsp;&nbsp;&nbsp;&nbsp;Insurance premium received |  | 109597 | - | - | - | 109597 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;Insurance acquisition cash flows paid |  | (19841) | - | - | - | (19841) |
|  | &nbsp;&nbsp;&nbsp;&nbsp;Insurance claims and other insurance service expenses paid |  | - | - | (45564) | - | (45564) |
|  | &nbsp;&nbsp;&nbsp;&nbsp;Receipt (payment) of investment components and refund of insurance premiums |  | - | - | (2) | - | (2) |
|  |  |  | 89756 | - | (45566) | - | 44190 |
| &nbsp;&nbsp;&nbsp;Other increases (decreases) |  |  | 8410 | - | (6108) | 2 | 2304 |
| &nbsp;&nbsp;&nbsp;Ending balance | Insurance contract assets |  | (6506) | - | 1894 | 24 | (4588) |
|  | Insurance contract liabilities |  | 135670 | 2579 | 21756 | 1944 | 161949 |
|  | Net insurance contract liabilities | W | 129164 | 2579 | 23650 | 1968 | 157361 |

---

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**29. <u>Insurance contract liabilities (continued)</u>**

(e) Changes in the measurement components of net insurance contract liabilities to which the premium allocation approach is not applied for the years ended December 31, 2025 and 2024 are as follows:

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  |  | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** |
|  |  |  | Present value estimate of future cash flows | Risk adjustment for non-financial risks | Contractual service margin | Contractual service margin | Contractual service margin | Contractual service margin | Total |
|  |  |  | Present value estimate of future cash flows | Risk adjustment for non-financial risks | Retrospective method | Fair value method | Other | Sub-total | Total |
| &nbsp;&nbsp;&nbsp;Beginning balance | &nbsp;&nbsp;&nbsp;&nbsp;Insurance contract assets | W | (1325) | 203  | - | - | 71  | 71  | (1051) |
|  | &nbsp;&nbsp;&nbsp;&nbsp;Insurance contract liabilities |  | 39847061  | 1346719  | 4848662  | 2876232  | 2044368  | 9769262  | 50963042  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;Net insurance contract liabilities |  | 39845736  | 1346922  | 4848662  | 2876232  | 2044439  | 9769333  | 50961991  |
| &nbsp;&nbsp;&nbsp;Changes related to future services | &nbsp;&nbsp;&nbsp;&nbsp;Changes in estimates adjusting the contractual service margin |  | 927177  | (20510) | (394416) | 123371  | (635621) | (906666) | 1  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;Changes in estimates not adjusting the contractual service margin |  | (34340) | 5828  | - | - | - | - | (28512) |
|  | &nbsp;&nbsp;&nbsp;&nbsp;Effect of initial recognition of new contracts |  | (1841928) | 224776  | - | - | 1649798  | 1649798  | 32646  |
|  |  |  | (949091) | 210094  | (394416) | 123371  | 1014177  | 743132  | 4135  |
| &nbsp;&nbsp;&nbsp;Changes related to current service | &nbsp;&nbsp;&nbsp;&nbsp;Amortization of contractual service margin |  | - | - | (357104) | (253829) | (302280) | (913213) | (913213) |
|  | &nbsp;&nbsp;&nbsp;&nbsp;Change in risk adjustment |  | - | (173450) | - | - | - | - | (173450) |
|  | &nbsp;&nbsp;&nbsp;&nbsp;Experience adjustment |  | 48316  | - | - | - | - | - | 48316  |
|  |  |  | 48316  | (173450) | (357104) | (253829) | (302280) | (913213) | (1038347) |
| &nbsp;&nbsp;&nbsp;Changes related to past services | &nbsp;&nbsp;&nbsp;&nbsp;Adjustment of incurred claim component |  | (15614) | (11115) | - | - | - | - | (26729) |

---

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**29. <u>Insurance contract liabilities (continued)</u>**

(e) Changes in the measurement components of net insurance contract liabilities to which the premium allocation approach is not applied for the years ended December 31, 2025 and 2024 are as follows (continued):

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  |  | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** |
|  |  |  | Present value estimate of future cash flows | Risk adjustment for non-financial risks | Contractual service margin | Contractual service margin | Contractual service margin | Contractual service margin | Total |
|  |  |  | Present value estimate of future cash flows | Risk adjustment for non-financial risks | Retrospective method | Fair value method | Other | Sub-total | Total |
| &nbsp;&nbsp;&nbsp;Insurance finance income and expenses | &nbsp;&nbsp;&nbsp;&nbsp;Profit or loss | W | 2452814  | 55416  | 146242  | 90559  | 107501  | 344302  | 2852532  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;Other comprehensive income |  | (1719959) | (28635) | - | - | - | - | (1748594) |
|  |  |  | 732855  | 26781  | 146242  | 90559  | 107501  | 344302  | 1103938  |
| &nbsp;&nbsp;&nbsp;Cash flows for the period | &nbsp;&nbsp;&nbsp;&nbsp;Insurance premium received |  | 7797683  | - | - | - | - | - | 7797683  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;Insurance acquisition cash flows paid |  | (2062604) | - | - | - | - | - | (2062604) |
|  | &nbsp;&nbsp;&nbsp;&nbsp;Insurance claims and other insurance service expenses paid |  | (1746506) | - | - | - | - | - | (1746506) |
|  | &nbsp;&nbsp;&nbsp;&nbsp;Receipt (payment) of investment components and refund of insurance premiums |  | (4693623) | - | - | - | - | - | (4693623) |
|  |  |  | (705050) | - | - | - | - | - | (705050) |
| &nbsp;&nbsp;&nbsp;Other increases (decreases) |  |  | 44  | (35) | - | - | (142) | (142) | (133) |
| &nbsp;&nbsp;&nbsp;Ending balance | &nbsp;&nbsp;&nbsp;&nbsp;Insurance contract assets |  | (1336) | 407  | - | - | 169  | 169  | (760) |
|  | &nbsp;&nbsp;&nbsp;&nbsp;Insurance contract liabilities |  | 38958532  | 1398790  | 4243384  | 2836333  | 2863526  | 9943243  | 50300565  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;Net insurance contract liabilities | W | 38957196  | 1399197  | 4243384  | 2836333  | 2863695  | 9943412  | 50299805  |

---

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**29. <u>Insurance contract liabilities (continued)</u>**

(e) Changes in the measurement components of net insurance contract liabilities to which the premium allocation approach is not applied for the years ended December 31, 2025 and 2024 are as follows (continued):

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  |  | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
|  |  |  | Present value estimate of future cash flows | Risk adjustment for non-financial risks | Contractual service margin | Contractual service margin | Contractual service margin | Contractual service margin | Total |
|  |  |  | Present value estimate of future cash flows | Risk adjustment for non-financial risks | Retrospective method | Fair value method | Other | Sub-total | Total |
| &nbsp;&nbsp;&nbsp;Beginning balance | &nbsp;&nbsp;&nbsp;&nbsp;Insurance contract assets | W | (743) | 124 | - | - | 175 | 175 | (444) |
|  | &nbsp;&nbsp;&nbsp;&nbsp;Insurance contract liabilities |  | 37213497 | 1151534 | 5772838 | 2782796 | 1308901 | 9864535 | 48229566 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;Net insurance contract liabilities |  | 37212754 | 1151658 | 5772838 | 2782796 | 1309076 | 9864710 | 48229122 |
| &nbsp;&nbsp;&nbsp;Changes related to future services | &nbsp;&nbsp;&nbsp;&nbsp;Changes in estimates adjusting the contractual service margin  |  | 685902  | 90882  | (663935) | 257316  | (370165) | (776784) | - |
|  | &nbsp;&nbsp;&nbsp;&nbsp;Changes in estimates not adjusting the contractual service margin |  | 39452  | 382  | - | - | 460  | 460  | 40294  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;Effect of initial recognition of new contracts |  | (1395897) | 157279 | - | - | 1266258 | 1266258 | 27640 |
|  |  |  | (670543) | 248543 | (663935) | 257316 | 896553 | 489934 | 67934 |
| &nbsp;&nbsp;&nbsp;Changes related to current service | &nbsp;&nbsp;&nbsp;&nbsp;Amortization of contractual service margin |  | - | - | (433780) | (246990) | (242944) | (923714) | (923714) |
|  | &nbsp;&nbsp;&nbsp;&nbsp;Change in risk adjustment |  | - | (119568) | - | - | - | - | (119568) |
|  | &nbsp;&nbsp;&nbsp;&nbsp;Experience adjustment |  | (49668) | - | - | - | - | - | (49668) |
|  |  |  | (49668) | (119568) | (433780) | (246990) | (242944) | (923714) | (1092950) |
| &nbsp;&nbsp;&nbsp;Changes related to past services | &nbsp;&nbsp;&nbsp;&nbsp;Adjustment of incurred claim component |  | 44341 | (16159) | - | - | - | - | 28182 |

---

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**29. <u>Insurance contract liabilities (continued)</u>**

(e) Changes in the measurement components of net insurance contract liabilities to which the premium allocation approach is not applied for the years ended December 31, 2025 and 2024 are as follows (continued):

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  |  | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
|  |  |  | Present value estimate of future cash flows | Risk adjustment for non-financial risks | Contractual service margin | Contractual service margin | Contractual service margin | Contractual service margin | Total |
|  |  |  | Present value estimate of future cash flows | Risk adjustment for non-financial risks | Retrospective method | Fair value method | Other | Sub-total | Total |
| &nbsp;&nbsp;&nbsp;Insurance finance income and expenses | &nbsp;&nbsp;&nbsp;&nbsp;Profit or loss | W | 1399565 | 41292 | 173539 | 83110 | 81754 | 338403 | 1779260 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;Other comprehensive income |  | 3130302 | 41156 | - | - | - | - | 3171458 |
|  |  |  | 4529867 | 82448 | 173539 | 83110 | 81754 | 338403 | 4950718 |
| &nbsp;&nbsp;&nbsp;Cash flows for the period | &nbsp;&nbsp;&nbsp;&nbsp;Insurance premium received |  | 6897049 | - | - | - | - | - | 6897049 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;Insurance acquisition cash flows paid |  | (1586104) | - | - | - | - | - | (1586104) |
|  | &nbsp;&nbsp;&nbsp;&nbsp;Insurance claims and other insurance service expenses paid |  | (1590554) | - | - | - | - | - | (1590554) |
|  | &nbsp;&nbsp;&nbsp;&nbsp;Receipt (payment) of investment components and refund of insurance premiums |  | (4941397) | - | - | - | - | - | (4941397) |
|  |  |  | (1221006) | - | - | - | - | - | (1221006) |
| &nbsp;&nbsp;&nbsp;Other increases (decreases)  |  |  | (9) | - | - | - | - | - | (9) |
| &nbsp;&nbsp;&nbsp;Ending balance | &nbsp;&nbsp;&nbsp;&nbsp;Insurance contract assets |  | (1325) | 203 | - | - | 71 | 71 | (1051) |
|  | &nbsp;&nbsp;&nbsp;&nbsp;Insurance contract liabilities |  | 39847061 | 1346719 | 4848662 | 2876232 | 2044368 | 9769262 | 50963042 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;Net insurance contract liabilities | W | 39845736 | 1346922 | 4848662 | 2876232 | 2044439 | 9769333 | 50961991 |

---

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**29. <u>Insurance contract liabilities (continued)</u>**

(f) Details of insurance contracts initially recognized during the years ended December 31, 2025 and 2024, to which the premium allocation approach was not applied, are as follows:

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  |  | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** |
|  |  |  | Present value estimate of future cash outflows | Present value estimate of future cash outflows | Present value estimate of future cash inflows | Risk adjustment for non-financial risks | Contractual service margin | Total |
|  |  |  | Other than insurance acquisition cash flow amount | Insurance acquisition cash flow amount | Present value estimate of future cash inflows | Risk adjustment for non-financial risks | Contractual service margin | Total |
| &nbsp;&nbsp;&nbsp;Contracts initially recognized during the period | Groups of contracts issued other than onerous contracts | W | 7203902  | 2065657  | (11135497) | 216140  | 1649798  | - |
| &nbsp;&nbsp;&nbsp;Contracts initially recognized during the period | Groups of onerous contracts issued |  | 742242  | 104758  | (822990) | 8636  | - | 32646  |
|  |  | W | 7946144  | 2170415  | (11958487) | 224776  | 1649798  | 32646  |

---

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  |  | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
|  |  |  | Present value estimate of future cash outflows | Present value estimate of future cash outflows | Present value estimate of future cash inflows | Risk adjustment for non-financial risks | Contractual service margin | Total |
|  |  |  | Other than insurance acquisition cash flow amount | Insurance acquisition cash flow amount | Present value estimate of future cash inflows | Risk adjustment for non-financial risks | Contractual service margin | Total |
| &nbsp;&nbsp;&nbsp;Contracts initially recognized during the period | Groups of contracts issued other than onerous contracts | W | 5654572 | 1725595 | (8794395) | 147970 | 1266258 | - |
| &nbsp;&nbsp;&nbsp;Contracts initially recognized during the period | Groups of onerous contracts issued |  | 748281 | 119002 | (848952) | 9309 | - | 27640 |
|  |  | W | 6402853 | 1844597 | (9643347) | 157279 | 1266258 | 27640 |

---

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**29. <u>Insurance contract liabilities (continued)</u>**

(g) The amount expected to be recognized in profit or loss in the future as Contractual Service Margin for insurance contracts that do not apply the premium allocation approach as of December 31, 2025 and 2024 as follows:

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** |
|  |  | **Less than1 year** | **1~2 years** | **2~5 years** | **5~10 years** | **More than 10 years** | **Total** |
| &nbsp;&nbsp;&nbsp;Contractual Service Margin  | W | 608355  | 542852  | 1365661  | 1682380  | &nbsp;&nbsp;&nbsp;&nbsp;5744164  | 9943412  |

---

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
|  |  | **Less than 1 year** | **1~2 years** | **2~5 years** | **5~10 years** | **More than 10 years** | **Total** |
| &nbsp;&nbsp;&nbsp;Contractual Service Margin  | W | 613018 | 527795 | 1331128 | 1664754 | &nbsp;&nbsp;&nbsp;&nbsp;5632638 | 9769333 |

---

(h) The composition details and fair value amounts of basic items of insurance contracts with direct participation characteristics as of December 31, 2025 and 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
| **Classification (\*)** |  | **December 31, 2025** | **December 31, 2024** |
| Cash and amortized cost measurement deposits | W | &nbsp;&nbsp;&nbsp;&nbsp;371582  | &nbsp;&nbsp;&nbsp;&nbsp;294963  |
| Financial assets measured at FVTPL |  | &nbsp;&nbsp;&nbsp;&nbsp;4004935  | &nbsp;&nbsp;&nbsp;&nbsp;3561126  |
| Amortized cost loan receivables |  | &nbsp;&nbsp;&nbsp;&nbsp;40245  | &nbsp;&nbsp;&nbsp;&nbsp;32489  |
| Derivatives |  | &nbsp;&nbsp;&nbsp;&nbsp;429  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(150) |
| Other |  | &nbsp;&nbsp;&nbsp;&nbsp;52778  | &nbsp;&nbsp;&nbsp;&nbsp;69608 |
|  | W | &nbsp;&nbsp;&nbsp;&nbsp;4469969  | &nbsp;&nbsp;&nbsp;&nbsp;3958036 |

---

(\*) As of December 31, 2025 and 2024, the carrying amounts of financial assets (liabilities) related to variable insurance are W 6,338,236 million and W 5,498,129 million, respectively.

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**29. <u>Insurance contract liabilities (continued)</u>**

(i) Changes in the remaining coverage and incurred claim components of reinsurance contract assets and liabilities for which the premium allocation approach is not applied for the years ended December 31, 2025 and 2024 are as follows:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  |  |  | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** |
|  |  |  | Remaining coverage component | Remaining coverage component | Incurred claim component | Total |
|  |  |  | Excluding loss recovery component | Loss recovery component | Incurred claim component | Total |
| &nbsp;&nbsp;&nbsp;Beginning balance | &nbsp;&nbsp;&nbsp;&nbsp;Reinsurance contract assets | W | 47331  | 3806  | 56552  | 107689  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;Reinsurance contract liabilities |  | (153155) | 17187  | 37910  | (98058) |
|  | &nbsp;&nbsp;&nbsp;&nbsp;Net reinsurance contract assets (liabilities) |  | (105824) | 20993  | 94462  | 9631  |
| &nbsp;&nbsp;&nbsp;Reinsurance revenue | &nbsp;&nbsp;&nbsp;&nbsp;Incurred reinsurance claims |  | - | - | 185015  | 185015  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;Changes in liabilities for incurred claims |  | - | - | (34225) | (34225) |
|  | &nbsp;&nbsp;&nbsp;&nbsp;Other |  | 60  | 14124  | - | 14184  |
|  |  |  | 60  | 14124  | 150790  | 164974 |
| &nbsp;&nbsp;&nbsp;Reinsurance service expense | &nbsp;&nbsp;&nbsp;&nbsp;Fair value method |  | (68563) | - | - | (68563) |
|  | &nbsp;&nbsp;&nbsp;&nbsp;Other |  | (81875) | - | - | (81875) |
|  |  |  | (150438) | - | - | (150438) |
| Recoveries of investment components and reinsurance premiums | Recoveries of investment components and reinsurance premiums |  | (249075) | - | 249075  | - |
| &nbsp;&nbsp;&nbsp;Reinsurance finance income and expense | Profit or loss |  | 9055  | (4) | 1831  | 10882  |
|  | Other comprehensive income |  | (211893) | 13  | 171  | (211709) |
|  |  | W | (202838) | 9  | 2002  | (200827) |

---

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**29. <u>Insurance contract liabilities (continued)</u>**

(i) Changes in the remaining coverage and incurred claim components of reinsurance contract assets and liabilities for which the premium allocation approach is not applied for the years ended December 31, 2025 and 2024 are as follows (continued):

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  |  |  | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** |
|  |  |  | Remaining coverage components | Remaining coverage components | Incurred claim<br>component | Total |
|  |  |  | Excluding loss recovery component | Loss recovery component | Incurred claim<br>component | Total |
| &nbsp;&nbsp;&nbsp;Cash flows for the period | &nbsp;&nbsp;&nbsp;&nbsp;Reinsurance premium paid | W | 969789 | - | - | 969789 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;Recoveries of reinsurance claims and other reinsurance income |  | - | - | (130014) | (130014) |
|  | &nbsp;&nbsp;&nbsp;&nbsp;Receipts of investment components and recoveries of reinsurance premiums |  | 21694  | - | (246720) | (225026) |
|  |  |  | 991483 | - | (376734) | 614749 |
| Other increases (decreases) | Other increases (decreases) |  | (119) | 119  | - | - |
| &nbsp;&nbsp;&nbsp;Ending balance | &nbsp;&nbsp;&nbsp;&nbsp;Reinsurance contract assets |  | 433672  | 3922  | 56873  | 494467  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;Reinsurance contract liabilities |  | (150423) | 31323  | 62722  | (56378) |
|  | &nbsp;&nbsp;&nbsp;&nbsp;Net reinsurance contract assets<br>&nbsp;&nbsp;&nbsp;&nbsp;(liabilities) | W | 283249  | 35245  | 119595  | 438089  |

---

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**29. <u>Insurance contract liabilities (continued)</u>**

(i) Changes in the remaining coverage and incurred claim components of reinsurance contract assets and liabilities for which the premium allocation approach is not applied for the years ended December 31, 2025 and 2024 are as follows (continued):

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  |  |  | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
|  |  |  | Remaining coverage components | Remaining coverage components | Incurred claim<br>component | Total |
|  |  |  | Excluding loss recovery component | Loss recovery component | Incurred claim<br>component | Total |
| &nbsp;&nbsp;&nbsp;Beginning balance | &nbsp;&nbsp;&nbsp;&nbsp;Reinsurance contract assets | W | 19436 | 5055 | 38323 | 62814 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;Reinsurance contract liabilities |  | (143204) | 23112 | 26930 | (93162) |
|  | &nbsp;&nbsp;&nbsp;&nbsp;Net reinsurance contract assets <br>&nbsp;&nbsp;&nbsp;&nbsp;(liabilities) |  | (123768) | 28167 | 65253 | (30348) |
| &nbsp;&nbsp;&nbsp;Reinsurance revenue | &nbsp;&nbsp;&nbsp;&nbsp;Incurred reinsurance claims |  | - | - | 89856 | 89856 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;Changes in liabilities for incurred claims |  | - | - | (29334) | (29334) |
|  | &nbsp;&nbsp;&nbsp;&nbsp;Other |  | 10 | (7391) | - | (7381) |
|  |  |  | 10 | (7391) | 60522 | 53141 |
| &nbsp;&nbsp;&nbsp;Reinsurance service expense | &nbsp;&nbsp;&nbsp;&nbsp;Fair value method |  | (28839) | - | - | (28839) |
|  | &nbsp;&nbsp;&nbsp;&nbsp;Other |  | (28514) | - | - | (28514) |
|  |  |  | (57353) | - | - | (57353) |
| Recoveries of investment components and reinsurance premiums | Recoveries of investment components and reinsurance premiums |  | (143510) | - | 143510 | - |
| &nbsp;&nbsp;&nbsp;Reinsurance finance income and expense | Profit or loss |  | (1350) | 37 | 1375 | 62 |
|  | Other comprehensive income |  | (2685) | 244 | 350 | (2091) |
|  |  | W | (4035) | 281 | 1725 | (2029) |

---

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**29. <u>Insurance contract liabilities (continued)</u>**

(i) Changes in the remaining coverage and incurred claim components of reinsurance contract assets and liabilities for which the premium allocation approach is not applied for the years ended December 31, 2025 and 2024 are as follows (continued):

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  |  |  | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
|  |  |  | Remaining coverage components | Remaining coverage components | Incurred claim<br>component | Total |
|  |  |  | Excluding loss recovery component | Loss recovery component | Incurred claim<br>component | Total |
| &nbsp;&nbsp;&nbsp;Cash flows for the period | &nbsp;&nbsp;&nbsp;&nbsp;Reinsurance premium paid | W | 221033 | - | - | 221033 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;Recoveries of reinsurance claims and other reinsurance income  |  | - | - | (33580) | (33580) |
|  | &nbsp;&nbsp;&nbsp;&nbsp;Receipts of investment components and recoveries of reinsurance premiums |  | 2348 | - | (142968) | (140620) |
|  |  |  | 223381 | - | (176548) | 46833 |
| Other increases (decreases) | Other increases (decreases) |  | (549) | (64) | - | (613) |
| &nbsp;&nbsp;&nbsp;Ending balance | &nbsp;&nbsp;&nbsp;&nbsp;Reinsurance contract assets |  | 47331 | 3806 | 56552 | 107689 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;Reinsurance contract liabilities |  | (153155) | 17187 | 37910 | (98058) |
|  | &nbsp;&nbsp;&nbsp;&nbsp;Net reinsurance contract assets<br>&nbsp;&nbsp;&nbsp;&nbsp;(liabilities) | W | (105824) | 20993 | 94462 | 9631 |

---

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**29. <u>Insurance contract liabilities (continued)</u>**

(j) Changes in the remaining coverage and incurred claim components of reinsurance contract assets and liabilities applying the premium allocation approach for the years ended December 31, 2025 and 2024 are as follows:

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  |  | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** |
|  |  |  | Remaining coverage components | Remaining coverage components | Incurred claim component | Incurred claim component | Total |
|  |  |  | Excluding loss recovery component | Loss recovery component | Present value estimate of future cash flows | Risk adjustment for non-financial risks | Total |
| &nbsp;&nbsp;&nbsp;Beginning balance | &nbsp;&nbsp;&nbsp;&nbsp;Reinsurance contract assets | W | 51439  | 965  | 23144  | 1517  | 77065  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;Reinsurance contract liabilities |  | - | - | (5) | - | (5) |
|  | &nbsp;&nbsp;&nbsp;&nbsp;Net reinsurance contract assets (liabilities) |  | 51439  | 965  | 23139  | 1517  | 77060  |
| Reinsurance revenue | &nbsp;&nbsp;&nbsp;&nbsp;Incurred reinsurance claims |  | - | - | 33682  | 1753  | 35435  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;Changes in liabilities for incurred claims |  | - | - | 136  | (24) | 112  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;Other |  | - | 1778  | - | - | 1778  |
|  |  |  | - | 1778  | 33818  | 1729  | 37325  |
| &nbsp;&nbsp;&nbsp;Reinsurance service expenses |  |  | (38642) | - | - | - | (38642) |
| &nbsp;&nbsp;&nbsp;&nbsp;Recoveries of investment components and reinsurance premiums | &nbsp;&nbsp;&nbsp;&nbsp;Recoveries of investment components and reinsurance premiums |  | - | - | - | - | - |
| &nbsp;&nbsp;&nbsp;Reinsurance finance income and expenses | &nbsp;&nbsp;&nbsp;&nbsp;Profit or loss |  | 2984  | - | 114  | 35  | 3133  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;Other comprehensive income |  | - | - | (19) | (5) | (24) |
|  |  |  | 2984  | - | 95  | 30  | 3109  |
| &nbsp;&nbsp;&nbsp;Cash flows for the period | &nbsp;&nbsp;&nbsp;&nbsp;Reinsurance premium paid |  | 42773  | - | - | - | 42773 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;Recoveries of reinsurance claims and other reinsurance income  |  | - | - | (12650) | - | (12650) |
|  | &nbsp;&nbsp;&nbsp;&nbsp;Receipts of investment components and recoveries of reinsurance premiums |  | - | - | - | - | - |
|  |  |  | 42773  | - | (12650) | - | 30123 |
| &nbsp;&nbsp;&nbsp;Other increases (decreases) |  |  | - | - | - | - | - |
| &nbsp;&nbsp;&nbsp;Ending balance | &nbsp;&nbsp;&nbsp;&nbsp;Reinsurance contract assets |  | 58554  | 2743  | 44402  | 3276  | 108975  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;Reinsurance contract liabilities |  | - | - | - | - | - |
|  | &nbsp;&nbsp;&nbsp;&nbsp;Net reinsurance contract assets (liabilities) | W | 58554  | 2743  | 44402  | 3276  | 108975  |

---

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**29. <u>Insurance contract liabilities (continued)</u>**

(j) Changes in the remaining coverage and incurred claim components of reinsurance contract assets and liabilities applying the premium allocation approach for the years ended December 31, 2025 and 2024 are as follows (continued):

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  |  | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
|  |  |  | Remaining coverage components | Remaining coverage components | Incurred claim component | Incurred claim component | Total |
|  |  |  | Excluding loss recovery component | Loss recovery component | Present value estimate of future cash flows | Risk adjustment for non-financial risks | Total |
| &nbsp;&nbsp;&nbsp;Beginning balance | &nbsp;&nbsp;&nbsp;&nbsp;Reinsurance contract assets | W | 19971 | 1220 | 4244 | 104 | 25539 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;Reinsurance contract liabilities |  | (59) | - | (19) | - | (78) |
|  | &nbsp;&nbsp;&nbsp;&nbsp;Net reinsurance contract assets (liabilities) |  | 19912 | 1220 | 4225 | 104 | 25461 |
| Reinsurance revenue | &nbsp;&nbsp;&nbsp;&nbsp;Incurred reinsurance claims |  | - | - | 15934 | 564 | 16498 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;Changes in liabilities for incurred claims |  | - | (255) | 3476 | 838 | 4059 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;Other |  | (120) | - | - | - | (120) |
|  |  |  | (120) | (255) | 19410 | 1402 | 20437 |
| &nbsp;&nbsp;&nbsp;Reinsurance service expenses |  |  | (18052) | - | - | - | (18052) |
| &nbsp;&nbsp;&nbsp;&nbsp;Recoveries of investment components and reinsurance premiums | &nbsp;&nbsp;&nbsp;&nbsp;Recoveries of investment components and reinsurance premiums |  | - | - | - | - | - |
| &nbsp;&nbsp;&nbsp;Reinsurance finance income and expenses | &nbsp;&nbsp;&nbsp;&nbsp;Profit or loss |  | 2071 | - | 97 | 7 | 2175 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;Other comprehensive income |  | - | - | 14 | 4 | 18 |
|  |  |  | 2071 | - | 111 | 11 | 2193 |
| &nbsp;&nbsp;&nbsp;Cash flows for the period | &nbsp;&nbsp;&nbsp;&nbsp;Reinsurance premium paid |  | 2128 | - | - | - | 2128 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;Recoveries of reinsurance claims and other reinsurance income  |  | - | - | 33051 | - | 33051 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;Receipts of investment components and recoveries of reinsurance premiums |  | - | - | - | - | - |
|  |  |  | 2128 | - | 33051 | - | 35179 |
| &nbsp;&nbsp;&nbsp;Other increases (decreases) |  |  | 45500 | - | (33658) | - | 11842 |
| &nbsp;&nbsp;&nbsp;Ending balance | &nbsp;&nbsp;&nbsp;&nbsp;Reinsurance contract assets |  | 51439 | 965 | 23144 | 1517 | 77065 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;Reinsurance contract liabilities |  | - | - | (5) | - | (5) |
|  | &nbsp;&nbsp;&nbsp;&nbsp;Net reinsurance contract assets (liabilities) | W | 51439 | 965 | 23139 | 1517 | 77060 |

---

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**29. <u>Insurance contract liabilities (continued)</u>**

(k) Changes by measurement component in reinsurance contract assets and liabilities for which the premium allocation approach is not applied for the years ended December 31, 2025 and 2024 are as follows:

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  |  | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** |
|  |  |  | Present value estimate of future cash flows | Risk adjustment for non-financial risks | Contractual service margin | Contractual service margin | Contractual service margin | Total |
|  |  |  | Present value estimate of future cash flows | Risk adjustment for non-financial risks | Fair value method | Other | Sub-total | Total |
| &nbsp;&nbsp;&nbsp;Beginning balance | &nbsp;&nbsp;&nbsp;&nbsp;Reinsurance contract assets | W | (81178) | 19688  | 78043  | 91136  | 169179  | 107689  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;Reinsurance contract liabilities |  | (323273) | 39435  | 95595  | 90185  | 185780  | (98058) |
|  | &nbsp;&nbsp;&nbsp;&nbsp;Net reinsurance contract <br>assets (liabilities) |  | (404451) | 59123  | 173638  | 181321  | 354959  | 9631  |
| &nbsp;&nbsp;&nbsp;Changes related to future services | &nbsp;&nbsp;&nbsp;&nbsp;Changes in estimates adjusting the contractual service margin  |  | 110860  | 3688  | (54909) | (45758) | (100667) | 13881  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;Effect of initial recognition of new contracts |  | (268930) | 16978  | - | 253590  | 253590  | 1638  |
|  |  |  | (158070) | 20666  | (54909) | 207832  | 152923  | 15519  |
| &nbsp;&nbsp;&nbsp;Changes related to current service | &nbsp;&nbsp;&nbsp;&nbsp;Amortization of contractual service margin |  | - | - | (10697) | (21985) | (32682) | (32682) |
|  | &nbsp;&nbsp;&nbsp;&nbsp;Change in risk adjustment |  | - | (5065) | - | - | - | (5065) |
|  | &nbsp;&nbsp;&nbsp;&nbsp;Experience adjustment |  | 70989  | - | - | - | - | 70989  |
|  |  |  | 70989  | (5065) | (10697) | (21985) | (32682) | 33242  |
| &nbsp;&nbsp;&nbsp;Changes related to past services | &nbsp;&nbsp;&nbsp;&nbsp;Adjustments to incurred claims component | W | (33376) | (849) | - | - | - | (34225) |

---

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**29. <u>Insurance contract liabilities (continued)</u>**

(k) Changes by measurement component in reinsurance contract assets and liabilities for which the premium allocation approach is not applied for the years ended December 31, 2025 and 2024 are as follows (continued):

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  |  | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** |
|  |  |  | Present value estimate of future cash flows | Risk adjustment for non-financial risks | Contractual service margin | Contractual service margin | Contractual service margin | Total |
|  |  |  | Present value estimate of future cash flows | Risk adjustment for non-financial risks | Fair value method | Other | Sub-total | Total |
| &nbsp;&nbsp;&nbsp;Reinsurance finance income and expenses | &nbsp;&nbsp;&nbsp;&nbsp;Profit or loss | W | (7204) | 2252  | 5176  | 10658  | 15834  | 10882  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;Other comprehensive <br>income |  | (209355) | (2354) | - | - | - | (211709) |
|  |  |  | (216559) | (102) | 5176  | 10658  | 15834  | (200827) |
| &nbsp;&nbsp;&nbsp;Cash flows for the period | &nbsp;&nbsp;&nbsp;&nbsp;Reinsurance premium paid |  | 969789  | - | - | - | - | 969789  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;Recoveries of reinsurance claims and other reinsurance income  |  | (130014) | - | - | - | - | (130014) |
|  | &nbsp;&nbsp;&nbsp;&nbsp;Receipts of investment components and recoveries of reinsurance premiums |  | (225026) | - | - | - | - | (225026) |
|  |  |  | 614749  | - | - | - | - | 614749  |
| &nbsp;&nbsp;&nbsp;Other increases (decreases) |  |  | - | - | - | - | - | - |
| &nbsp;&nbsp;&nbsp;Ending balance | &nbsp;&nbsp;&nbsp;&nbsp;Reinsurance contract assets |  | 188742  | 26586  | 57547  | 221592  | 279139  | 494467  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;Reinsurance contract<br>&nbsp;&nbsp;&nbsp;&nbsp;liabilities |  | (315460) | 47187  | 55661  | 156234  | 211895  | (56378) |
|  | &nbsp;&nbsp;&nbsp;&nbsp;Net reinsurance contract <br>&nbsp;&nbsp;&nbsp;&nbsp;assets (liabilities) | W | (126718) | 73773  | 113208  | 377826  | 491034  | 438089  |

---

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**29. <u>Insurance contract liabilities (continued)</u>**

(k) Changes by measurement component in reinsurance contract assets and liabilities for which the premium allocation approach is not applied for the years ended December 31, 2025 and 2024 are as follows (continued):

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  |  | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
|  |  |  | Present value estimate of future cash flows | Risk adjustment for non-financial risks | Contractual service margin | Contractual service margin | Contractual service margin | Total |
|  |  |  | Present value estimate of future cash flows | Risk adjustment for non-financial risks | Fair value method | Other | Sub-total | Total |
| &nbsp;&nbsp;&nbsp;Beginning balance | &nbsp;&nbsp;&nbsp;&nbsp;Reinsurance contract assets | W | (26683) | 18538 | 15224 | 55735 | 70959 | 62814 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;Reinsurance contract liabilities |  | (182136) | 28620 | 24066 | 36288 | 60354 | (93162) |
|  | &nbsp;&nbsp;&nbsp;&nbsp;Net reinsurance contract <br>assets (liabilities) |  | (208819) | 47158 | 39290 | 92023 | 131313 | (30348) |
| &nbsp;&nbsp;&nbsp;Changes related to future services | &nbsp;&nbsp;&nbsp;&nbsp;Changes in estimates adjusting the contractual service margin  |  | (186989) | 4806 | 121614 | 52954 | 174568 | (7615) |
|  | &nbsp;&nbsp;&nbsp;&nbsp;Effect of initial recognition of new contracts |  | (46121) | 4672 | - | 42929 | 42929 | 1480 |
|  |  |  | (233110) | 9478 | 121614 | 95883 | 217497 | (6135) |
| &nbsp;&nbsp;&nbsp;Changes related to current service | &nbsp;&nbsp;&nbsp;&nbsp;Amortization of contractual service margin |  | - | - | 11035 | (10844) | 191 | 191 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;Change in risk adjustment |  | - | (2982) | - | - | - | (2982) |
|  | &nbsp;&nbsp;&nbsp;&nbsp;Experience adjustment |  | 34048 | - | - | - | - | 34048 |
|  |  |  | 34048 | (2982) | 11035 | (10844) | 191 | 31257 |
| &nbsp;&nbsp;&nbsp;Changes related to past services | &nbsp;&nbsp;&nbsp;&nbsp;Adjustments to incurred claims component | W | (27816) | (1518) | - | - | - | (29334) |

---

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**29. <u>Insurance contract liabilities (continued)</u>**

(k) Changes by measurement component in reinsurance contract assets and liabilities for which the premium allocation approach is not applied for the years ended December 31, 2025 and 2024 are as follows (continued):

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  |  | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
|  |  |  | Present value estimate of future cash flows | Risk adjustment for non-financial risks | Contractual service margin | Contractual service margin | Contractual service margin | Total |
|  |  |  | Present value estimate of future cash flows | Risk adjustment for non-financial risks | Fair value method | Other | Sub-total | Total |
| &nbsp;&nbsp;&nbsp;Reinsurance finance income and expenses | &nbsp;&nbsp;&nbsp;&nbsp;Profit or loss | W | (7595) | 1758 | 1699 | 4200 | 5899 | 62 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;Other comprehensive <br>income |  | (7320) | 5229 | - | - | - | (2091) |
|  |  |  | (14915) | 6987 | 1699 | 4200 | 5899 | (2029) |
| &nbsp;&nbsp;&nbsp;Cash flows for the period | &nbsp;&nbsp;&nbsp;&nbsp;Reinsurance premium paid |  | 221033 | - | - | - | - | 221033 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;Recoveries of reinsurance claims and other reinsurance income  |  | (33580) | - | - | - | - | (33580) |
|  | &nbsp;&nbsp;&nbsp;&nbsp;Receipts of investment components and recoveries of reinsurance premiums |  | (140620) | - | - | - | - | (140620) |
|  |  |  | 46833 | - | - | - | - | 46833 |
| &nbsp;&nbsp;&nbsp;Other increases (decreases) |  |  | (672) | - | - | 59 | 59 | (613) |
| &nbsp;&nbsp;&nbsp;Ending balance | &nbsp;&nbsp;&nbsp;&nbsp;Reinsurance contract assets |  | (81178) | 19688 | 78043 | 91136 | 169179 | 107689 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;Reinsurance contract<br>&nbsp;&nbsp;&nbsp;&nbsp;liabilities |  | (323273) | 39435 | 95595 | 90185 | 185780 | (98058) |
|  | &nbsp;&nbsp;&nbsp;&nbsp;Net reinsurance contract <br>&nbsp;&nbsp;&nbsp;&nbsp;assets (liabilities) | W | (404451) | 59123 | 173638 | 181321 | 354959 | 9631 |

---

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

 **29. <u>Insurance contract liabilities (continued)</u>**

(l) Details of reinsurance contracts that did not apply the premium allocation approach recognized for the first time for the years ended December 31, 2025 and 2024 are as follows:

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  |  | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** |
|  |  |  | Present value estimate of future cash outflows | Present value estimate of future cash outflows | Present value estimate of future cash inflows | Risk adjustment for non-financial risks | Contractual service margin | Total |
|  |  |  | Other than insurance acquisition cash flow amount | Insurance acquisition cash flow amount | Present value estimate of future cash inflows | Risk adjustment for non-financial risks | Contractual service margin | Total |
| &nbsp;&nbsp;&nbsp;Contracts initially recognized during the period | Groups of contracts issued other than net profit contracts | W | (1746549) | - | 1478971  | 15475  | 253467  | 1364  |
| &nbsp;&nbsp;&nbsp;Contracts initially recognized during the period | Groups of net profit contracts issued |  | (62220) | - | 60868  | 1503  | 123  | 274  |
| &nbsp;&nbsp;&nbsp;Contracts initially recognized during the period |  | W | (1808769) | - | 1539839  | 16978  | 253590  | 1638  |

---

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  |  | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
|  |  |  | Present value estimate of future cash outflows | Present value estimate of future cash outflows | Present value estimate of future cash inflows | Risk adjustment for non-financial risks | Contractual service margin | Total |
|  |  |  | Other than insurance acquisition cash flow amount | Insurance acquisition cash flow amount | Present value estimate of future cash inflows | Risk adjustment for non-financial risks | Contractual service margin | Total |
| &nbsp;&nbsp;&nbsp;Contracts initially recognized during the period | Groups of contracts issued other than net profit contracts | W | (160095) | - | 109889 | 3098 | 47598 | 490 |
| &nbsp;&nbsp;&nbsp;Contracts initially recognized during the period | Groups of net profit contracts issued |  | (64074) | - | 68159 | 1574 | (4669) | 990 |
| &nbsp;&nbsp;&nbsp;Contracts initially recognized during the period |  | W | (224169) | - | 178048 | 4672 | 42929 | 1480 |

---

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**29. <u>Insurance contract liabilities (continued)</u>**

(m) The amount of contractual service margin for reinsurance contracts that do not apply the premium allocation approach as of December 31, 2025 and 2024 is expected to be recognized in profit or loss in the future as follows:

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** |
|  |  | **Less than** <br>**1 year** | **1~2**<br>**years** | **2~5**<br>**year** | **5~10**<br>**year** | **More than 10 years** | **Total** |
| &nbsp;&nbsp;&nbsp;Reinsurance contract assets | W | (19328) | (18168) | (49285) | (67992) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(124366) | (279139) |
| &nbsp;&nbsp;&nbsp;Reinsurance contract liabilities |  | (18802) | (16756) | (38942) | (43802) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(93593) | (211895) |
|  | W | (38130) | (34924) | (88227) | (111794) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(217959) | (491034) |

---

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
|  |  | **Less than** <br>**1 year** | **1~2**<br>**years** | **2~5**<br>**year** | **5~10**<br>**year** | **More than 10 years** | **Total** |
| &nbsp;&nbsp;&nbsp;Reinsurance contract assets | W | (12551) | (11363) | (29455) | (38460) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(77350) | (169179) |
| &nbsp;&nbsp;&nbsp;Reinsurance contract liabilities |  | (13874) | (12036) | (30495) | (35569) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(93806) | (185780) |
|  | W | (26425) | (23399) | (59950) | (74029) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(171156) | (354959) |

---

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**29. <u>Insurance contract liabilities (continued)</u>**

(n) Details of insurance profits and losses for the years ended December 31, 2025 and 2024 are as follows:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  |  |  | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** |
|  |  |  | Retroactive modification method | Fair value method | Other | Total |
| &nbsp;&nbsp;&nbsp;Unapplied premium allocation approach | &nbsp;&nbsp;&nbsp;&nbsp;Expected insurance claims and other expected insurance service expenses | W | 757062  | 659233  | 342883  | 1759178  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;Change in risk adjustment |  | 57884  | 41931  | 86153  | 185968  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;Amortization of contractual service margin  |  | 357104  | 253829  | 302280  | 913213  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;Recoveries of insurance acquisition cash flows  |  | 92192  | 312  | 329782  | 422286  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;Other |  | (11306) | 64  | (7023) | (18265) |
|  |  |  | 1252936  | 955369  | 1054075  | 3262380  |
| Premium allocation approach | Premium allocation approach |  | 23416  | - | 78526  | 101942  |
| **Insurance revenue subtotal** | **Insurance revenue subtotal** |  | 1276352  | 955369  | 1132601  | 3364322  |
| &nbsp;&nbsp;&nbsp;Unapplied premium allocation approach | &nbsp;&nbsp;&nbsp;&nbsp;Incurred claims and other incurred insurance service expenses |  | 761109  | 643747  | 424376  | 1829232  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;Changes in liabilities for incurred claims |  | (5912) | (24832) | 4015  | (26729) |
|  | &nbsp;&nbsp;&nbsp;&nbsp;Losses on onerous contracts |  | (21666) | (70108) | 95909  | 4135  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;Amortization of insurance acquisition cash flows |  | 92191  | 312  | 329783  | 422286  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;Other |  | (9665) | 1670  | (19490) | (27485) |
|  |  |  | 816057  | 550789  | 834593  | 2201439  |
| Premium allocation approach | Premium allocation approach |  | 53111  | - | 67264  | 120375  |
| **Insurance service expense subtotal** | **Insurance service expense subtotal** | W | 869168  | 550789  | 901857  | 2321814  |

---

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**29. <u>Insurance contract liabilities (continued)</u>**

(n) Details of insurance profits and losses for the years ended December 31, 2025 and 2024 are as follows (continued):

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  |  |  | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** |
|  |  |  | Retroactive modification method | Fair value method | Other | Total |
| &nbsp;&nbsp;&nbsp;Unapplied premium allocation approach | Incurred reinsurance claims | W | - | 108510  | 76505  | 185015  |
|  | Changes in liabilities for incurred claims |  | - | (32864) | (1361) | (34225) |
|  | Other |  | - | (207) | 14391  | 14184  |
|  |  |  | - | 75439  | 89535  | 164974  |
| Premium allocation approach | Premium allocation approach |  | 9420  | - | 27905  | 37325  |
| **Reinsurance revenue subtotal** | **Reinsurance revenue subtotal** |  | 9420  | 75439  | 117440  | 202299  |
| &nbsp;&nbsp;&nbsp;Unapplied premium allocation approach | &nbsp;&nbsp;&nbsp;&nbsp;Expected reinsurance claims |  | - | 37115  | 39595  | 76710  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;Change in risk adjustment |  | - | 3552  | 3177  | 6729  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;Amortization of contractual service margin |  | - | 10697  | 21985  | 32682  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;Other |  | - | 17199  | 17118  | 34317  |
|  |  |  | - | 68563  | 81875  | 150438  |
| Premium allocation approach | Premium allocation approach |  | 17796  | - | 20846  | 38642  |
| **Reinsurance service expense subtotal** | **Reinsurance service expense subtotal** |  | 17796  | 68563  | 102721  | 189080  |
|  |  | W | 398808  | 411456  | 245463  | 1055727  |

---

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**29. <u>Insurance contract liabilities (continued)</u>**

(n) Details of insurance profits and losses for the years ended December 31, 2025 and 2024 are as follows (continued):

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  |  |  | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
|  |  |  | Retroactive modification method | Fair value method | Other | Total |
| &nbsp;&nbsp;&nbsp;Unapplied premium allocation approach | &nbsp;&nbsp;&nbsp;&nbsp;Expected insurance claims and other expected insurance service expenses | W | 769737 | 685765 | 199933 | 1655435 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;Change in risk adjustment |  | 48040  | 35437  | 46946  | 130423  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;Amortization of contractual service margin  |  | 433780  | 246990  | 242944  | 923714  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;Recoveries of insurance acquisition cash flows |  | 116454 | 379 | 243578 | 360411 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;Other |  | (13242) | (371) | (4371) | (17984) |
|  |  |  | 1354769 | 968200 | 729030 | 3051999 |
| Premium allocation approach | Premium allocation approach |  | 64109 | - | 445 | 64554 |
| **Insurance revenue subtotal** | **Insurance revenue subtotal** |  | 1418878 | 968200 | 729475 | 3116553 |
| &nbsp;&nbsp;&nbsp;Unapplied premium allocation approach | &nbsp;&nbsp;&nbsp;&nbsp;Incurred claims and other incurred insurance service expenses |  | 775573 | 652193  | 219202  | 1646968  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;Changes in liabilities for incurred claims |  | (2310) | 26060  | 4432  | 28182  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;Losses on onerous contracts |  | 42867  | 4682  | 20385  | 67934  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;Amortization of insurance acquisition cash flows |  | 116636 | 379 | 243396 | 360411 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;Other |  | (10455) | 883 | (38758) | (48330) |
|  |  |  | 922311 | 684197 | 448657 | 2055165 |
| Premium allocation approach | Premium allocation approach |  | 75029 | - | 1366 | 76395 |
| **Insurance service expense subtotal** | **Insurance service expense subtotal** | W | 997340 | 684197 | 450023 | 2131560 |

---

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**29. <u>Insurance contract liabilities (continued)</u>**

(n) Details of insurance profits and losses for the years ended December 31, 2025 and 2024 are as follows (continued):

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  |  |  | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
|  |  |  | Retroactive modification method | Fair value method | Other | Total |
| &nbsp;&nbsp;&nbsp;Unapplied premium allocation approach | Incurred reinsurance claims | W | 67 | 68816 | 20973 | 89856 |
|  | Changes in liabilities for incurred claims |  | 58 | (27421) | (1971) | (29334) |
|  | Other |  | 53 | (11372) | 3938 | (7381) |
|  |  |  | 178 | 30023 | 22940 | 53141 |
| Premium allocation approach | Premium allocation approach |  | 20437 | - | - | 20437 |
| **Reinsurance revenue subtotal** | **Reinsurance revenue subtotal** |  | 20615 | 30023 | 22940 | 73578 |
| &nbsp;&nbsp;&nbsp;Unapplied premium allocation approach | &nbsp;&nbsp;&nbsp;&nbsp;Expected reinsurance claims |  | - | 39319  | 13689 | 53008  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;Change in risk adjustment |  | - | 2861  | 1066  | 3927  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;Amortization of contractual service margin |  | - | (11035) | 10844  | (191) |
|  | &nbsp;&nbsp;&nbsp;&nbsp;Other |  | - | (2306) | 2915 | 609 |
|  |  |  | - | 28839 | 28514 | 57353 |
| Premium allocation approach | Premium allocation approach |  | 18052 | - | - | 18052 |
| **Reinsurance service expense subtotal** | **Reinsurance service expense subtotal** |  | 18052 | 28839 | 28514 | 75405 |
|  |  | W | 424101 | 285187 | 273878 | 983166 |

---

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**30. <u>Insurance finance income and expense</u>**

Details of insurance finance income and expense for the years ended December 31, 2025 and 2024 are as follows:

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  |  |  | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** |
|  |  |  |  | Life insurance | Life insurance | Life insurance | Non-life insurance | Non-life insurance | Non-life insurance | Total |
|  |  |  |  | General | Variable | Retirement | Long-term | General | Automobile | Total |
| Insurance finance income | Insurance contracts | &nbsp;&nbsp;&nbsp;&nbsp;Effect of foreign exchange rate changes | W | 20253  | - | - | - | - | - | 20253  |
|  |  | &nbsp;&nbsp;&nbsp;&nbsp;Other |  | 5483  | 18122  | - | - | - | - | 23605  |
|  |  |  |  | 25736  | 18122  | - | - | - | - | 43858  |
|  | Reinsurance contracts | &nbsp;&nbsp;&nbsp;&nbsp;Other |  | 229  | - | - | - | - | - | 229  |
|  |  |  |  | 25965  | 18122  | - | - | - | - | 44087  |
| &nbsp;&nbsp;&nbsp;Insurance finance expenses | Insurance contracts | &nbsp;&nbsp;&nbsp;&nbsp;Effect of foreign exchange rate changes |  | 15824  | - | - | - | - | - | 15824  |
|  |  | &nbsp;&nbsp;&nbsp;&nbsp;Other |  | 220  | 1219210  | - | - | - | - | 1219430  |
|  |  |  |  | 16044  | 1219210  | - | - | - | - | 1235254  |
|  | Reinsurance contracts | Other |  | 17  | - | - | - | 11  | - | 28  |
|  |  |  |  | 16061  | 1219210  | - | - | 11  | - | 1235282  |
| Total insurance finance income and expenses recognized in profit or loss | Total insurance finance income and expenses recognized in profit or loss | Total insurance finance income and expenses recognized in profit or loss |  | 9904  | (1201088) | - | - | (11) | - | (1191195) |
| Insurance finance income and expenses recognized in other comprehensive income (\*) | Insurance finance income and expenses recognized in other comprehensive income (\*) | Insurance finance income and expenses recognized in other comprehensive income (\*) |  | 1791470  | (42982) | - | 107  | 32  | - | 1748627  |
| &nbsp;&nbsp;&nbsp;Reinsurance finance income and expenses recognized in other comprehensive income (\*) | &nbsp;&nbsp;&nbsp;Reinsurance finance income and expenses recognized in other comprehensive income (\*) | &nbsp;&nbsp;&nbsp;Reinsurance finance income and expenses recognized in other comprehensive income (\*) |  | (211718) | - | - | 8  | (23) | - | (211733) |
| &nbsp;&nbsp;&nbsp;Total insurance finance income and expenses recognized in profit or loss and other comprehensive income | &nbsp;&nbsp;&nbsp;Total insurance finance income and expenses recognized in profit or loss and other comprehensive income | &nbsp;&nbsp;&nbsp;Total insurance finance income and expenses recognized in profit or loss and other comprehensive income | W | 1589656  | (1244070) | - | 115  | (2) | - | 345699  |

---

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**30. <u>Insurance finance income and expense (continued)</u>**

Details of insurance finance income and expense for the years ended December 31, 2025 and 2024 are as follows (continued):

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  |  |  | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
|  |  |  |  | Life insurance | Life insurance | Life insurance | Non-life insurance | Non-life insurance | Non-life insurance | Total |
|  |  |  |  | General | Variable | Retirement | Long-term | General | Automobile | Total |
| Insurance finance income | Insurance contracts | &nbsp;&nbsp;&nbsp;&nbsp;Effect of foreign exchange rate changes | W | 13896 | - | - | - | - | - | 13896 |
|  |  | &nbsp;&nbsp;&nbsp;&nbsp;Other |  | 21762 | 166710 | - | - | 2 | - | 188474 |
|  |  |  |  | 35658 | 166710 | - | - | 2 | - | 202370 |
|  | Reinsurance contracts | &nbsp;&nbsp;&nbsp;&nbsp;Other |  | 40 | - | - | - | (47) | - | (7) |
|  |  |  |  | 35698 | 166710 | - | - | (45) | - | 202363 |
| &nbsp;&nbsp;&nbsp;Insurance finance expenses | Insurance contracts | &nbsp;&nbsp;&nbsp;&nbsp;Effect of foreign exchange rate changes |  | 48410 | - | - | - | - | - | 48410 |
|  |  | &nbsp;&nbsp;&nbsp;&nbsp;Other |  | 1176 | 252216 | - | - | - | - | 253392 |
|  |  |  |  | 49586 | 252216 | - | - | - | - | 301802 |
| Total insurance finance income and expenses recognized in profit or loss | Total insurance finance income and expenses recognized in profit or loss | Total insurance finance income and expenses recognized in profit or loss |  | (13888) | (85506) | - | - | (45) | - | (99439) |
| Insurance finance income and expenses recognized in other comprehensive income (\*) | Insurance finance income and expenses recognized in other comprehensive income (\*) | Insurance finance income and expenses recognized in other comprehensive income (\*) |  | (3124198) | (47215) | - | (47) | (26) | - | (3171486) |
| &nbsp;&nbsp;&nbsp;Reinsurance finance income and expenses recognized in other comprehensive income (\*) | &nbsp;&nbsp;&nbsp;Reinsurance finance income and expenses recognized in other comprehensive income (\*) | &nbsp;&nbsp;&nbsp;Reinsurance finance income and expenses recognized in other comprehensive income (\*) |  | (2098) | - | - | 7 | 18 | - | (2073) |
| &nbsp;&nbsp;&nbsp;Total insurance finance income and expenses recognized in profit or loss and other comprehensive income | &nbsp;&nbsp;&nbsp;Total insurance finance income and expenses recognized in profit or loss and other comprehensive income | &nbsp;&nbsp;&nbsp;Total insurance finance income and expenses recognized in profit or loss and other comprehensive income | W | (3140184) | (132721) | - | (40) | (53) | - | (3272998) |

---

(\*) Finance income and expense recognized as other comprehensive income are before deducting corporate tax effects.

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**31. <u>Investment contract liabilities</u>**

Details of investment contract liabilities as of December 31, 2025 and 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  |  | **December 31, 2025** | **December 31, 2024** |
| Financial liabilities at amortized cost (\*) | W | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,536,393 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,165,022 |

---

(\*) This is retirement pension policyholder reserve.

**32. <u>Other liabilities</u>**

Other liabilities as of December 31, 2025 and 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  |  | **December 31, 2025** | **December 31, 2024** |
| Lease liabilities (\*)  | W | 790339  | 890689  |
| Accounts payable |  | 29026951  | 15140873  |
| Accrued expenses |  | 6964603  | 7023165  |
| Dividend payable |  | 6352  | 7997  |
| Advance received |  | 178085  | 198317  |
| Unearned income |  | 446972  | 453706  |
| Withholding value-added tax and other taxes |  | 844975  | 1020113  |
| Securities deposit received |  | 2576731  | 2252424  |
| Foreign exchange settlement pending |  | 639422  | 551196  |
| Domestic exchange settlement pending |  | 4194954  | 1806106  |
| Payable from trust account |  | 9905174  | 8174066  |
| Due to agencies |  | 1186042  | 1178661  |
| Deposits for subscription |  | 82969  | 61578  |
| Sundry liabilities |  | 2431999  | 2198383  |
| Other |  | 57058  | 54133  |
| Present value discount |  | (94969) | (131898) |
|  | W | 59237657  | 40879509 |

---

(\*) As of December 31, 2025, the Group accounts for the lease liabilities as other liabilities. For the year ended December 31, 2025, the amount of variable lease payments that are not included in the measurement of lease liabilities is W 74 million, cash outflows from leases are W 288,447 million, and interest expense on lease liabilities is W 20,984 million. For the year ended December 31, 2024, the amount of variable lease payments that are not included in the measurement of lease liabilities is W 1,987 million, cash outflows from leases are W 299,061 million, and interest expense on lease liabilities is W 22,787 million.

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**33. <u>Equity</u>**

(a) Equity as of December 31, 2025 and 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**December 31, 2025** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**December 31, 2024** |
| Capital stock (\*1): |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Ordinary shares | W | 2695586  | 2695586  |
| &nbsp;&nbsp;&nbsp;&nbsp;Preferred shares |  | 274055  | 274055  |
|  |  | 2969641  | 2969641 |
| Hybrid bond |  | 4749837  | 4600121 |
| Capital surplus: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Share premium |  | 11352744  | 11352744  |
| &nbsp;&nbsp;&nbsp;&nbsp;Others  |  | 745814  | 742224  |
|  |  | 12098558 | 12094968  |
| Capital adjustments |  | (1180080) | (807114) |
| Accumulated other comprehensive income, net of tax: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loss on financial assets at FVOCI |  | (3752987) | (2314518) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Equity in other comprehensive loss of associates |  | (11035) | 5701 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Foreign currency translation adjustments for foreign operations |  | 152539  | 296489 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net loss from cash flow hedges |  | (169697) | 3406 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Remeasurement of net defined benefit liabilities (assets) |  | (348506) | (354087) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Changes in own credit risk on financial liabilities designated under fair value option |  | (4468) | (5569) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net finance income on insurance contract assets (liabilities) |  | 1801274  | 532388 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net finance income on reinsurance contract assets (liabilities) |  | (141933) | 11750 |
|  |  | (2474813) | (1824440) |
| Retained earnings (\*2), (\*3), (\*4)  |  | 41796129 | 39020580 |
| Non-controlling interest (\*5) |  | 2413052 | 2767277 |
|  | W | 60372324 | 58821033 |

---

(\*1) Due to profit retirement, the capital is different from the total face value of issued stocks.

(\*2) As of December 31, 2025 and 2024, profits reserved by the Group in accordance with Article 53 of the Financial Holding Companies Act amounted to W 2,969,641 million and W 2,865,461 million, respectively.

(\*3) As of December 31, 2025 and 2024, the regulatory reserve for loan losses the Group appropriated in retained earnings are W 20,462 million and W 20,656 million, respectively.

(\*4) As of December 31, 2025, profit dividends within retained earnings of subsidiaries of the Group restricted in accordance with laws, etc. are amounted to W 20,888,870 million.

(\*5) As of December 31, 2025 and 2024, the total amounts of hybrid bonds that Shinhan Bank, Jeju Bank, Shinhan Capital Co,.Ltd. and Shinhan Life Insurance Co., Ltd. issued are W 2,148,630 million and W 2,587,478 million, respectively, and are recognized as non-controlling interests. And, for the years ended December 31, 2025 and 2024, the amounts of dividends paid for the hybrid bonds of Shinhan Bank, Jeju Bank, Shinhan Capital Co,. Ltd. and Shinhan Life Insurance Co., Ltd. W 106,713 million and W 104,400 million, respectively, are allocated to profit attributed to non-controlling interest.

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won, except per share data)

**33. <u>Equity (continued)</u>**

(b) Capital stock

*i) Capital stock of the Group as of December 31, 2025 and 2024 are as follows:*

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  |  | **December 31, 2025** | **December 31, 2025** | **December 31, 2024** | **December 31, 2024** |
| &nbsp;&nbsp;&nbsp;Number of authorized shares |  | 1000000000 | 1000000000 | 1000000000 | 1000000000 |
| &nbsp;&nbsp;&nbsp;Types of stock |  | Ordinary shares | Preferred shares | Ordinary shares | Preferred shares |
| &nbsp;&nbsp;&nbsp;Par value per share in won | W | 5000 | - | 5000 | - |
| &nbsp;&nbsp;&nbsp;Number of issued ordinary shares |  | 485494934 |  | 503445325 | - |
| &nbsp;&nbsp;&nbsp;Capital stock (\*) | W | 2695586 | 274055 | 2695586 | 274055 |

---

(\*) Due to profit retirement, the capital is different from the total face value of issued stocks.

*(ii) The details of changes in the number of ordinary shares outstanding as of December 31, 2025 and 2024 are as follows:*

---

| | | |
|:---|:---|:---|
|  | **December 31, 2025** | **December 31, 2024** |
| Beginning balance | 498859764  | 512753119 |
| Increase | - | 6353 |
| Decrease | (21702365) | (13899708) |
| Ending balance | 477157399  | 498859764 |

---

(c) Hybrid bonds

Hybrid bonds classified as other equity instruments as of December 31, 2025 and 2024 are as follows:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Issue date** | **Maturity date** | **Interest rate (%)** |  | &nbsp;&nbsp;&nbsp;**December 31, 2025** | **December 31, 2024** |
| KRW | June 25, 2015 | June 25, 2045 | 4.38 | W | - | 199455  |
| KRW | September 15, 2017 | Perpetual bond | 4.25 |  | 89783 | 89783  |
| KRW | April 13, 2018 | Perpetual bond | 4.56 |  | 14955 | 14955  |
| KRW | September 17, 2020 | Perpetual bond | 3.12 |  | - | 448699  |
| KRW | March 16, 2021 | Perpetual bond | 2.94 |  | 429009 | 429009  |
| KRW | March 16, 2021 | Perpetual bond | 3.30 |  | 169581 | 169581  |
| KRW | January 25, 2022 | Perpetual bond | 3.90 |  | 560438 | 560438  |
| KRW | January 25, 2022 | Perpetual bond | 4.00 |  | 37853 | 37853  |
| KRW | August 26, 2022 | Perpetual bond | 4.93 |  | 343026 | 343026  |
| KRW | August 26, 2022 | Perpetual bond | 5.15 |  | 55803 | 55803  |
| KRW | January 30, 2023 | Perpetual bond | 5.14 |  | 398831 | 398831  |
| KRW | July 13, 2023 | Perpetual bond | 5.40 |  | 498815 | 498815  |
| KRW | January 31, 2024 | Perpetual bond | 4.49 |  | 398833 | 398833  |
| KRW | September 12, 2024 | Perpetual bond | 4.00 |  | 399033 | 399033  |
| KRW | February 13, 2025 | Perpetual bond | 3.90 |  | 398835 | - |
| KRW | September 9, 2025 | Perpetual bond | 3.26 |  | 399035 | - |
| USD | May 12, 2021 | Perpetual bond | 2.88 |  | 556007 | 556007 |
|  |  |  |  | W | 4749837 | 4600121 |

---

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won, except per share data)

**33. <u>Equity (continued)</u>**

(c) Hybrid bonds (continued)

(\*) For the year ended December 31, 2025, the deduction for capital related to hybrid bonds issued is W 2,131 million.

The hybrid bonds above can be repaid early after 5 or 10 years from the date of issuance, and the Group has an unconditional right to extend the maturity under the same condition or change them to perpetual bonds.

(d) Capital adjustments

*(i) Changes in capital adjustments for the years ended December 31, 2025 and 2024 are as follows:*

---

| | | | |
|:---|:---|:---|:---|
|  |  | **December 31, 2025** | **December 31, 2024** |
| Beginning balance | W | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(807114) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(658664) |
| Acquisition of treasury stocks |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1250001) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(700000) |
| Disposal and retirement of treasury stocks |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;900000  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;450297 |
| Redemption of hybrid bonds |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1322) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;102143 |
| Other transactions with owners |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(21643) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(890) |
| &nbsp;&nbsp;Ending balance | W | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1180080) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(807114) |

---

(ii) Details of treasury stock acquisition for the years ended December 31, 2025 and 2024 are as follows:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
|  | **The number of shares** |  | **Carrying amount** | **The number of shares** |  | **Carrying amount** |
| Beginning balance | 4585561 | W | 250000 | 6352 | W | 227 |
| Acquisition | 21702365 |  | 1250001  | 13899708 |  | 700000 |
| Disposal | - |  | - | (6353) |  | (227) |
| Retirement (\*) | (17950391) |  | (900000) | (9314146) |  | (450000) |
| Ending balance | 8337535 | W | 600001 | 4585561 | W | 250000 |

---

(\*) For the year ended December 31, 2025, the Group acquired treasury stocks for retirement and completed the retirement of 7,603,260 shares and 10,347,131 shares on April 29, 2025 and June 26, 2025, respectively. For the year ended December 31, 2024, the Group acquired treasury stocks for retirement and completed the retirement of 3,366,257 shares and 5,947,889 shares on March 22, 2024 and November 1, 2024, respectively.

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**33. <u>Equity (continued)</u>**

(e) Accumulated other comprehensive income

Changes in accumulated other comprehensive income for the years ended December 31, 2025 and 2024 are as follows:

---

| | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | &nbsp;&nbsp;**December 31, 2025** | &nbsp;&nbsp;**December 31, 2025** | &nbsp;&nbsp;**December 31, 2025** | &nbsp;&nbsp;**December 31, 2025** | &nbsp;&nbsp;**December 31, 2025** | &nbsp;&nbsp;**December 31, 2025** | &nbsp;&nbsp;**December 31, 2025** | &nbsp;&nbsp;**December 31, 2025** | &nbsp;&nbsp;**December 31, 2025** | &nbsp;&nbsp;**December 31, 2025** | &nbsp;&nbsp;**December 31, 2025** |
|  |  | Items that are or may be reclassified to profit or loss | Items that are or may be reclassified to profit or loss | Items that are or may be reclassified to profit or loss | Items that are or may be reclassified to profit or loss | Items that are or may be reclassified to profit or loss | Items that are or may be reclassified to profit or loss | Items that will never be reclassified to profit or loss | Items that will never be reclassified to profit or loss | Items that will never be reclassified to profit or loss | Items that will never be reclassified to profit or loss | Total |
|  |  | Gain (loss) on securities at FVOCI | Equity in other comprehensi-ve income (expense) of<br>associates | Foreign currency translation<br>adjustments<br>for foreign<br>operations | Net gain (loss)<br>from cash<br>flow<br>hedges | Net finance <br>Income (expen-se) on insurance contract <br>assets <br>(liabilities) | Net finance <br>Income (expen-se) on reinsura-nce contract assets <br>(liabilities) | Remeasure-<br>ments of<br>the defined benefit<br>plans | Equity in other comprehensi-ve income (expense) of<br>associates | Gain (loss) on<br> securities at <br>FVOCI | Gain (loss) on<br>financial <br>liabilities <br>designated at<br>FVTPL<br>attributable to<br>changes in<br>credit risk | Total |
| &nbsp;&nbsp;&nbsp;Beginning balance | &nbsp;&nbsp;&nbsp;&nbsp;W | (2482668) | 5692  | 296489  | 3406  | 532388  | 11750  | (354087) | 9  | 168150  | (5569) | (1824440) |
| &nbsp;&nbsp;&nbsp;Change due to fair value  |  | (2181955) | (24731) | - | - | 1748614  | (211730) | - | - | 225514  | (4163) | (448451) |
| Reclassification: |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Change due to impairment or disposal |  | (47293) | 662  | - | - | - | - | - | - | - | - | (46631) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Effect of hedge accounting |  | - | - | - | (27149) | - | - | - | - | - | - | (27149) |
| &nbsp;&nbsp;Hedging |  | (19262) | - | 59096  | (216152) | - | - | - | - | - | - | (176318) |
| &nbsp;&nbsp;&nbsp;Effects from changes in foreign exchange rate |  | - | 1107  | (199597) | - | - | - | - | - | (696) | - | (199186) |
| &nbsp;&nbsp;&nbsp;Remeasurements of the net defined benefit plans |  | - | - | - | - | - | - | (181) | - | - | - | (181) |
| &nbsp;&nbsp;&nbsp;Deferred income taxes |  | 648218  | 6226  | (3787) | 70198  | (479728) | 58047  | 5505  | - | (61788) | 1511  | 244402  |
| &nbsp;&nbsp;&nbsp;Transfer to other account |  | - | - | - | - | - | - | - | - | (2923) | 3753  | 830  |
| &nbsp;&nbsp;&nbsp;Non-controlling interests |  | 1716  | - | 338  | - | - | - | 257  | - | - | - | 2311  |
| &nbsp;&nbsp;&nbsp;&nbsp;Ending balance | &nbsp;&nbsp;&nbsp;&nbsp;W | (4081244) | (11044) | 152539  | (169697) | 1801274  | (141933) | (348506) | 9  | 328257  | (4468) | (2474813) |

---

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**33. <u>Equity (continued)</u>**

(e) Accumulated other comprehensive income (continued)

Changes in accumulated other comprehensive income for the years ended December 31, 2025 and 2024 are as follows (continued):

---

| | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | &nbsp;&nbsp;**December 31, 2024** | &nbsp;&nbsp;**December 31, 2024** | &nbsp;&nbsp;**December 31, 2024** | &nbsp;&nbsp;**December 31, 2024** | &nbsp;&nbsp;**December 31, 2024** | &nbsp;&nbsp;**December 31, 2024** | &nbsp;&nbsp;**December 31, 2024** | &nbsp;&nbsp;**December 31, 2024** | &nbsp;&nbsp;**December 31, 2024** | &nbsp;&nbsp;**December 31, 2024** | &nbsp;&nbsp;**December 31, 2024** |
|  |  | Items that are or may be reclassified to profit or loss | Items that are or may be reclassified to profit or loss | Items that are or may be reclassified to profit or loss | Items that are or may be reclassified to profit or loss | Items that are or may be reclassified to profit or loss | Items that are or may be reclassified to profit or loss | Items that will never be reclassified to profit or loss | Items that will never be reclassified to profit or loss | Items that will never be reclassified to profit or loss | Items that will never be reclassified to profit or loss | Total |
|  |  | Gain (loss) on securities at FVOCI | Equity in other comprehensi-ve income (expense) of<br>associates | Foreign currency translation<br>adjustments<br>for foreign<br>operations | Net gain (loss)<br>from cash<br>flow<br>hedges | Net finance <br>Income (expen-se) on insurance contract <br>assets <br>(liabilities) | Net finance <br>Income (expen-se) on reinsura-nce contract assets <br>(liabilities) | Remeasure-<br>ments of<br>the defined benefit<br>plans | Equity in other comprehens-ive income (expense) of<br>associates | Gain (loss) on <br>securities at <br>FVOCI | Gain (loss) on financial <br>liabilities <br>designated at<br>FVTPL<br>attributable to<br>changes in<br>credit risk | Total |
| &nbsp;&nbsp;&nbsp;Beginning balance | &nbsp;&nbsp;&nbsp;&nbsp;W | (3628434) | (979) | (118517) | (35108) | 2866623  | 13273 | (292328) | 9 | 124892 | (3884) | (1074453) |
| &nbsp;&nbsp;&nbsp;Change due to fair value  |  | 1465249 | 16732 | - | - | (3171476) | (2077) | - | - | 55179 | (8616) | (1645009) |
| Reclassification: |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Change due to impairment or disposal |  | 119594 | - | (593) | - | - | - | - | - | - | - | 119001 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Effect of hedge accounting |  | - | - | - | (582424) | - | - | - | - | - | - | (582424) |
| &nbsp;&nbsp;Hedging |  | (30371) | - | (221221) | 634645 | - | - | - | - | - | - | 383053 |
| &nbsp;&nbsp;&nbsp;Effects from changes in foreign exchange rate |  | - | (7668) | 624565 | - | - | - | - | - | 13017 | - | 629914 |
| &nbsp;&nbsp;&nbsp;Remeasurements of the net defined benefit plans |  | - | - | - | - | - | - | (83937) | - | - | - | (83937) |
| &nbsp;&nbsp;&nbsp;Deferred income taxes |  | (407849) | (2393) | 13431 | (13707) | 837241 | 554 | 21794 | - | (17609) | 2275 | 433737 |
| &nbsp;&nbsp;&nbsp;Transfer to other account |  | - | - | - | - | - | - | - | - | (7329) | 4656 | (2673) |
| &nbsp;&nbsp;&nbsp;Non-controlling interests |  | (857) | - | (1176) | - | - | - | 384 | - | - | - | (1649) |
| &nbsp;&nbsp;&nbsp;&nbsp;Ending balance | &nbsp;&nbsp;&nbsp;&nbsp;W | (2482668) | 5692 | 296489 | 3406 | 532388 | 11750 | (354087) | 9 | 168150 | (5569) | (1824440) |

---

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**33. <u>Equity (continued)</u>**

(f) Appropriation of retained earnings

The appropriation of retained earnings for the years ended December 31, 2025 and 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  |  | **December 31, 2025** | **December 31, 2024** |
| Date of appropriation: |  | March 26, 2026 | March 26, 2025 |
| **Unappropriated retained earnings:** |  |  |  |
| &nbsp;&nbsp;&nbsp;Balance at beginning of year | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;W | &nbsp;&nbsp;&nbsp;&nbsp;4472618 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4672650 |
| &nbsp;&nbsp;&nbsp;Retirement of treasury stock |  | &nbsp;&nbsp;&nbsp;&nbsp;(900070) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(450402) |
| &nbsp;&nbsp;&nbsp;Dividend to hybrid bonds |  | &nbsp;&nbsp;&nbsp;&nbsp;(197932) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(176945) |
| &nbsp;&nbsp;&nbsp;Interim dividends |  | &nbsp;&nbsp;&nbsp;&nbsp;(828228) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(820287) |
| &nbsp;&nbsp;&nbsp;Net income |  | &nbsp;&nbsp;&nbsp;&nbsp;2385457 | &nbsp;&nbsp;&nbsp;&nbsp;1619867 |
|  |  | &nbsp;&nbsp;&nbsp;&nbsp;4931845 | &nbsp;&nbsp;&nbsp;&nbsp;4844883 |
| **Transfer from voluntary reserves** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Loan loss reserve reversal amount |  | &nbsp;&nbsp;&nbsp;&nbsp;2754 | &nbsp;&nbsp;&nbsp;&nbsp;194 |
|  |  | &nbsp;&nbsp;&nbsp;&nbsp;4934599 | &nbsp;&nbsp;&nbsp;&nbsp;4845077 |
| **Appropriation of retained earnings:** |  |  |  |
| &nbsp;&nbsp;&nbsp;Legal reserve |  | &nbsp;&nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;&nbsp;104180 |
| &nbsp;&nbsp;&nbsp;Dividends on ordinary shares paid |  | &nbsp;&nbsp;&nbsp;&nbsp;417502 | &nbsp;&nbsp;&nbsp;&nbsp;267755 |
| &nbsp;&nbsp;&nbsp;Loss on redemption of hybrid bonds |  | &nbsp;&nbsp;&nbsp;&nbsp;1846  | &nbsp;&nbsp;&nbsp;&nbsp;524 |
|  |  | &nbsp;&nbsp;&nbsp;&nbsp;419348 | &nbsp;&nbsp;&nbsp;&nbsp;372459 |
| &nbsp;&nbsp;**Unappropriated retained earnings**<br>**to be carried over to subsequent year** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;W | &nbsp;&nbsp;&nbsp;&nbsp;4515251 | &nbsp;&nbsp;&nbsp;&nbsp;4472618 |

---

(\*) These statements of appropriation of retained earnings are based on the separate financial statements of Shinhan Financial Group.

(g) Regulatory reserve for loan losses

In accordance with Regulations for the Supervision of Financial Institutions, the Group reserves the difference between allowance for credit losses by K-IFRS and that as required by the Regulations at the account of regulatory reserve for loan losses in retained earnings.

*i) Changes in regulatory reserve for loan losses including non-controlling interests for the years ended December 31, 2025 and 2024 are as follows:*

---

| | | | |
|:---|:---|:---|:---|
|  |  | **December 31, 2025** | **December 31, 2024** |
| Beginning balance | W | 3,969,339  | 3,456,487 |
| Expected regulatory reserve for loan losses  |  | 274,226  | 512,852 |
| Ending balance | W | 4,243,565  | 3,969,339 |

---

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won, except per share data)

**33. <u>Equity (continued)</u>**

(g) Regulatory reserve for loan losses (continued)

*ii) Profit attributable to equity holders of Shinhan Financial Group and earnings per share after factoring in regulatory reserve for loan losses for the years ended December 31, 2025 and 2024 are as follows:*

---

| | | | |
|:---|:---|:---|:---|
|  |  | **December 31, 2025** | **December 31, 2024** |
| &nbsp;&nbsp;Profit attributable to equity holders of Shinhan Financial Group | W | 4971561  | 4450177 |
| Provision for regulatory reserve for loan losses |  | (268536) | (512278) |
| &nbsp;&nbsp;Profit attributable to equity holders of Shinhan Financial Group adjusted for regulatory reserve | W | 4703025  | 3937899 |
| &nbsp;&nbsp;&nbsp;Basic and diluted earnings per share adjusted for regulatory reserve in won (\*) |  | 9260 | 7779 |

---

(\*) Dividends for hybrid bonds are deducted.

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

 **34. <u>Dividends</u>**

(a) The interim dividends paid for the years ended December 31, 2025 and 2024 are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** |
| **Record date** |  |  |  | **Amount** |
| &nbsp;&nbsp;May 2, 2025 (1<sup>st</sup> Quarter) | Ordinary shares (W 570 per share) | Ordinary shares (W 570 per share) | W | 278127 |
| &nbsp;&nbsp;August 1, 2025 (2<sup>nd</sup> Quarter) | Ordinary shares (W 570 per share) |  | W | 276732 |
| &nbsp;&nbsp;November 4, 2025 (3<sup>rd</sup> Quarter) | Ordinary shares (W 570 per share) | W | W | 273369 |
|  |  |  | W | 828228 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
| **Record date** |  |  |  | **Amount** |
| &nbsp;&nbsp;March 31, 2024 (1<sup>st</sup> Quarter) | Ordinary shares (W 540 per share) | Ordinary shares (W 540 per share) | W | 275069 |
| &nbsp;&nbsp;June 30, 2024 (2<sup>nd</sup> Quarter) | Ordinary shares (W 540 per share) |  | W | 273358 |
| &nbsp;&nbsp;September 30, 2024 (3<sup>rd</sup> Quarter) | Ordinary shares (W 540 per share) | W | W | 271860 |
|  |  |  | W | 820287 |

---

(b) Details of dividends recognized as distributions to shareholders for the years ended December 31, 2025 and 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  |  | **December 31, 2025** | **December 31, 2024** |
| **Ordinary shares:** |  |  |  |
| &nbsp;&nbsp;Total number of shares issued and outstanding  | W | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;485494934 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;503445325 |
| &nbsp;&nbsp;Par value per share in won |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5000 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5000 |
| &nbsp;&nbsp;Dividend per share in won (\*3) |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;880 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;540 |
| &nbsp;&nbsp;Dividends (\*1), (\*2) | W | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;417502 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;267755 |
| &nbsp;&nbsp;Dividend rate per share (\*3)  | % | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.6 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.8 |
| **Record date (\*4)** |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2026-02-20 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2025-02-21 |

---

(\*1) The proposed dividend is scheduled to be resolved at the general meeting of shareholders on March 26, 2026, and therefore has not been recognized as a distribution to owners during the current period.

(\*2) The dividend applies to ordinary shares excluding treasury shares, with 2,723,039 treasury shares acquired between the end of the reporting period and the dividend record date being excluded.

(\*3) The amount excludes interim dividends. When including quarterly dividends, the dividend per share is W 2,590 and W 2,160, for the years ended December 31, 2025 and 2024, respectively and dividend rate per share are 51.8% and 43.2%, for the years ended December 31, 2025 and 2024, respectively.

(\*4) The Articles of Incorporation were amended at the regular general meeting of shareholders held on March 23, 2023, to allow the Board of Directors to determine the dividend record date by resolution. Accordingly, the record date for the 2025 annual dividend is February 20, 2026.

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**34. <u>Dividends (continued)</u>**

(c) Dividends for hybrid bond is calculated as follows for the years ended December 31, 2025 and 2024:

---

| | | | |
|:---|:---|:---|:---|
|  |  | **December 31, 2025** | **December 31, 2024** |
| Amount of hybrid bond | W | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4764550 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4614550 |
| Interest rate | % | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.88 ~ 5.40 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.88 ~ 5.40 |
| &nbsp;&nbsp;Dividends | W | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;197932 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;176945 |

---

**35. <u>Operating revenue</u>** 

Operating revenue for the years ended December 31, 2025 and 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  |  | **December 31, 2025** | **December 31, 2024** |
| Interest income | W | 27988801  | 29209338  |
| Fees and commission income |  | 4564323  | 4295366  |
| Insurance income |  | 3364322  | 3116553  |
| Reinsurance income |  | 202299  | 73578  |
| Insurance finance income |  | 44087  | 202363  |
| Dividend income |  | 209681  | 239097  |
| Net gain on financial instruments measured at FVTPL |  | 4823409  | 4264126 |
| Gain on trading derivatives measured at FVTPL |  | 17568108  | 22397247 |
| Net gain on financial instruments designated at FVTPL |  | 232193  | 252924  |
| Net gain on foreign currency transaction |  | 3683224  | 8084564  |
| Net gain on disposal of securities at FVOCI |  | 287564  | 197708  |
| Net gain on disposal of securities at amortized cost |  | 2  | - |
| Reversal of credit loss allowance |  | 107122  | 4311  |
| Gain related to hedging derivates |  | 607993  | 753798  |
| Other operating income |  | 998832  | 973306 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;W | 64681960  | 74064279 |

---

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**36. <u>Net interest income</u>** 

Net interest income for the years ended December 31, 2025 and 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  |  | **December 31, 2025** | **December 31, 2024** |
| **Interest income:** |  |  |  |
| &nbsp;&nbsp;&nbsp;Cash and due from banks at amortized cost | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;W | 781197  | 780046  |
| &nbsp;&nbsp;&nbsp;Deposits at FVTPL |  | 1305  | 133  |
| &nbsp;&nbsp;&nbsp;Securities at FVTPL |  | 1499121  | 1693064  |
| &nbsp;&nbsp;&nbsp;Securities at FVOCI |  | 2888284  | 2744083  |
| &nbsp;&nbsp;&nbsp;Securities at amortized cost |  | 1044061  | 1101721  |
| &nbsp;&nbsp;&nbsp;Loans at amortized cost |  | 21311377  | 22410903  |
| &nbsp;&nbsp;&nbsp;Loans at FVTPL |  | 89239  | 100122  |
| &nbsp;&nbsp;&nbsp;Insurance finance interest income |  | 232272  | 219409  |
| &nbsp;&nbsp;&nbsp;Others |  | 141945  | 159857 |
|  |  | 27988801  | 29209338 |
| **Interest expense:** |  |  |  |
| &nbsp;&nbsp;&nbsp;Deposits |  | 9202286  | 10220774 |
| &nbsp;&nbsp;&nbsp;Financial liabilities designated at FVTPL |  | 14792  | 13292 |
| &nbsp;&nbsp;&nbsp;Borrowings |  | 1534773  | 1862406  |
| &nbsp;&nbsp;&nbsp;Debt securities issued |  | 3332621  | 3408678  |
| &nbsp;&nbsp;&nbsp;Insurance finance interest expense |  | 1885044  | 1901536  |
| &nbsp;&nbsp;&nbsp;Others |  | 324829  | 400350 |
|  |  | 16294345  | 17807036 |
| Net interest income | W | 11694456  | 11402302 |

---

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**37. <u>Net fees and commission income</u>**

Net fees and commission income for the years ended December 31, 2025 and 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  |  | **December 31, 2025** | **December 31, 2024** |
| Fees and commission income: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Credit placement fees | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;W | 64109  | 73339  |
| &nbsp;&nbsp;&nbsp;&nbsp;Commission received as electronic charge receipt |  | 150709  | 147625  |
| &nbsp;&nbsp;&nbsp;&nbsp;Brokerage fees |  | 529028  | 392836  |
| &nbsp;&nbsp;&nbsp;&nbsp;Commission received as agency  |  | 176535  | 153684  |
| &nbsp;&nbsp;&nbsp;&nbsp;Investment banking fees |  | 294948  | 228976  |
| &nbsp;&nbsp;&nbsp;&nbsp;Commission received in foreign exchange activities |  | 452048  | 361341  |
| &nbsp;&nbsp;&nbsp;&nbsp;Trust management fees |  | 258331  | 249586  |
| &nbsp;&nbsp;&nbsp;&nbsp;Credit card fees |  | 1186972  | 1311422  |
| &nbsp;&nbsp;&nbsp;&nbsp;Operating lease fees (\*) |  | 651178  | 651691  |
| &nbsp;&nbsp;&nbsp;&nbsp;Others |  | 800465  | 724866 |
|  |  | 4564323  | 4295366 |
| Fees and commission expense: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Credit-related fee |  | 45155  | 49924  |
| &nbsp;&nbsp;&nbsp;&nbsp;Credit card fees |  | 1018051  | 966303  |
| &nbsp;&nbsp;&nbsp;&nbsp;Others |  | 579906  | 564265 |
|  |  | 1643112  | 1580492 |
| Net fees and commission income | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;W | 2921211  | 2714874 |

---

(\*) Among operating lease fees recognized for the years ended December 31, 2025 and 2024, there is no variable lease fee income which does not vary by index or rate.

**38. <u>Dividend income</u>**

Dividend income for the years ended December 31, 2025 and 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  |  | **December 31, 2025** | **December 31, 2024** |
| Securities at FVTPL | W | 138,353 | 152,990 |
| Securities at FVOCI |  | 71,328 | 86,107 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;W | 209,681 | 239,097 |

---

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**39. <u>Net gains (losses) on financial instruments measured at fair value through profit or loss</u>**

Net gains (losses) on financial instruments measured at fair value through profit or loss for the years ended December 31, 2025 and 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  |  | **December 31, 2025** | **December 31, 2024** |
| Net gain (loss) on due from banks measured at FVTPL |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Gain (loss) on valuation | W | 6465 | (711) |
| Net gain on loans measured at FVTPL |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Loss on valuation |  | (68284) | (2755) |
| &nbsp;&nbsp;&nbsp;&nbsp;Gain on sale |  | 487 | 90227 |
|  |  | (67797) | 87472 |
| Net gain on securities measured at FVTPL |  |  |  |
| &nbsp;&nbsp;Debt securities |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Gain on valuation  |  | 204485  | 663877  |
| &nbsp;&nbsp;&nbsp;&nbsp;Gain (loss) on sale |  | (10263) | (39354) |
| &nbsp;&nbsp;&nbsp;&nbsp;Other gains |  | 687136  | 803645 |
|  |  | 881358  | 1428168 |
| &nbsp;&nbsp;Equity securities |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Gain on valuation  |  | 934475  | 161316 |
| &nbsp;&nbsp;&nbsp;&nbsp;Gain on sale |  | 495672  | 485566 |
|  |  | 1430147  | 646882 |
| &nbsp;&nbsp;Other |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Gain on valuation |  | 337239  | 36688 |
|  |  | 2648744  | 2111738 |
| Net loss on financial liabilities measured at FVTPL |  |  |  |
| Debt securities |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Loss on valuation |  | 9972  | (3593) |
| &nbsp;&nbsp;&nbsp;&nbsp;Loss on disposal |  | (39802) | (249398) |
|  |  | (29830) | (252991) |
| &nbsp;&nbsp;Other |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Loss on valuation  |  | (527558) | (173058) |
| &nbsp;&nbsp;&nbsp;&nbsp;Gain on disposal |  | 12331  | 2930 |
|  |  | (515227) | (170128) |
|  |  | (545057) | (423119) |
| Derivatives: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Gain on valuation |  | 510524  | 82184 |
| &nbsp;&nbsp;&nbsp;&nbsp;Loss on transaction |  | (143514) | (646793) |
|  |  | 367010  | (564609) |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;W | 2409365  | 1210771 |

---

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**40. <u>Net gains (losses) on financial instruments designated at fair value through profit or loss</u>**

Net gains (losses) on financial instruments designated at fair value through profit or loss for the years ended December 31, 2025 and 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  |  | **December 31, 2025** | **December 31, 2024** |
| Financial liabilities designated at FVTPL: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Debt securities issued: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Gain (loss) on valuation | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;W | 23435  | (6466) |
| &nbsp;&nbsp;&nbsp;&nbsp;Gain on sale |  | 11  | - |
|  |  | 23446  | (6466) |
| &nbsp;&nbsp;&nbsp;&nbsp;Compound financial instruments: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Gain (loss) on valuation |  | 19796  | (29162) |
| &nbsp;&nbsp;&nbsp;&nbsp;Loss on sale and redemption |  | (457190) | (308825) |
|  |  | (437394) | (337987) |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;W | (413948) | (344453) |

---

**41. <u>Provision for credit loss allowance</u>**

Provision for credit loss allowance on financial assets for the years ended December 31, 2025 and 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  |  | **December 31, 2025** | **December 31, 2024** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Allowance provided: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Loans at amortized cost | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;W | (2014137) | (1862013) |
| &nbsp;&nbsp;&nbsp;&nbsp;Other financial assets at amortized cost |  | (70035) | (113662) |
| &nbsp;&nbsp;&nbsp;&nbsp;Securities at FVOCI |  | (25915) | - |
| &nbsp;&nbsp;&nbsp;&nbsp;Unused credit line and financial guarantee |  | - | (41910) |
|  |  | (2110087) | (2017585) |
| Allowance reversed: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Securities at FVOCI | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;W | - | 2699 |
| &nbsp;&nbsp;&nbsp;&nbsp;Securities at amortized cost |  | 1243  | 1612 |
| &nbsp;&nbsp;&nbsp;&nbsp;Unused credit line and financial guarantee |  | 105879  | - |
|  |  | 107122  | 4311 |
|  | W | (2002965) | (2013274) |

---

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**42. <u>General and administrative expenses</u>**

General and administrative expenses for the years ended December 31, 2025 and 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  |  | **December 31, 2025** | **December 31, 2024** |
| Employee benefits: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Salaries  | W | 3522053 | 3316503 |
| &nbsp;&nbsp;&nbsp;&nbsp;Severance benefits: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Defined contribution |  | 40817  | 37745 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Defined benefit |  | 143751  | 114943 |
|  |  | 184568 | 152688 |
| &nbsp;&nbsp;&nbsp;&nbsp;Termination benefits |  | 279693  | 235330 |
|  |  | 3986314 | 3704521 |
| Entertainment |  | 48345  | 46903 |
| Depreciation |  | 541607  | 535571  |
| Amortization |  | 308321  | 279095  |
| Taxes and utility bills |  | 316925  | 272018  |
| Advertising |  | 319845  | 315281  |
| Research |  | 27341  | 23917  |
| Others |  | 853802  | 938934 |
|  | W | 6402500  | 6116240 |

---

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won, except per share data)

**43. <u>Share-based payments</u>**

(a) Performance shares granted as of December 31, 2025 are as follows:

---

| | | |
|:---|:---|:---|
|  | **Expired** | **Not expired** |
| Type | Cash-settled share-based payment | Cash-settled share-based payment |
| Performance conditions | Relative stock price linked (20.0%), management index (80.0%) | Relative stock price linked (20.0%), management index (80.0%) |
| Exercising period | 4 years from the commencement date of the year <br>to which the grant date belongs | 4 years from the commencement date of the year <br>to which the grant date belongs |
| Estimated number of shares vested at December 31, 2025 | 880,880 shares | 2,069,238 shares |
| Fair value per share in Korean won (\*)  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;W 37,387, W 37,081,<br>W 38,156, W 50,444 and<br>W 77,757 for the expiration of exercising period from 2021 to 2025 | W 76,900 |

---

(\*) Based on performance-based stock compensation, the reference stock price (the arithmetic average of the weighted average share price of transaction volume for the past two months, the past one month, and the past one week from the day before the base date) of four years after the commencement of the grant year is paid in cash, and the fair value of the reference stock price to be paid in the future is assessed as the closing price of the settlement.

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**43. <u>Share-based payments (continued)</u>**

(b) Share-based compensation costs for the years ended December 31, 2025 and 2024 are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  |  | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** |
|  |  | **Employees of** | **Employees of** |  |
|  |  | **The controlling company** | **The subsidiaries** | **Total** |
| Performance shares  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;W | 10979 | 95163 | 106142 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  |  | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
|  |  | **Employees of** | **Employees of** |  |
|  |  | **The controlling company** | **The subsidiaries** | **Total** |
| Performance shares  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;W | 4950 | 41686 | 46636 |

---

(c) Accrued expenses recognized related to share-based payment transactions as of December 31, 2025 and 2024 are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  |  | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** |
|  |  | **Employees of** | **Employees of** |  |
|  |  | **The controlling company** | **The subsidiaries** | **Total** |
| Performance shares  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;W | 22537 | 197518 | 220055 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  |  | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
|  |  | **Employees of** | **Employees of** |  |
|  |  | **The controlling company** | **The subsidiaries** | **Total** |
| Performance shares  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;W | 16396 | 135356 | 151752 |

---

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**44. <u>Net other operating income and expenses</u>**

Other operating income and expenses for the years ended December 31, 2025 and 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  |  | **December 31, 2025** | **December 31, 2024** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Other operating income** |  |  |  |
| &nbsp;&nbsp;&nbsp;Gain on disposal of assets: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Loans at amortized cost | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;W | 249842  | 206643  |
| &nbsp;&nbsp;&nbsp;Others: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Gain on hedged items |  | 607993  | 753798 |
| &nbsp;&nbsp;&nbsp;&nbsp;Reversal of allowance for guarantees and acceptances |  | - | 8471 |
| &nbsp;&nbsp;&nbsp;&nbsp;Reversal of other allowance |  | 1086  | 8022 |
| &nbsp;&nbsp;&nbsp;&nbsp;Others |  | 747904  | 750170 |
|  |  | 1356983  | 1520461 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;W | 1606825  | 1727104 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Other operating expense** |  |  |  |
| &nbsp;&nbsp;&nbsp;Loss on disposal of assets: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Loans at amortized cost | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;W | 161910 | 97821 |
| &nbsp;&nbsp;&nbsp;Others: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Loss on hedged items |  | 753529  | 626116  |
| &nbsp;&nbsp;&nbsp;&nbsp;Fund contribution |  | 559455  | 526196  |
| &nbsp;&nbsp;&nbsp;&nbsp;Provision for payment guarantee liabilities |  | 404  | - |
| &nbsp;&nbsp;&nbsp;&nbsp;Provision for other debt allowances |  | 35164  | 98344  |
| &nbsp;&nbsp;&nbsp;&nbsp;Depreciation of operating lease assets  |  | 445157  | 465716  |
| &nbsp;&nbsp;&nbsp;&nbsp;Others |  | 1977199  | 1979135 |
|  |  | 3770908  | 3695507 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;W | 3932818  | 3793328 |
| **Other operating expenses, net** | W | (2325993) | (2066224) |

---

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

 **45. <u>Net other non-operating income and expenses</u>**

Other non-operating income and expenses for the years ended December 31, 2025 and 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  |  | **December 31, 2025** | **December 31, 2024** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Other non-operating income** |  |  |  |
| &nbsp;&nbsp;&nbsp;Gain on disposal of assets: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Property and equipment | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;W | 5706  | 3287  |
| &nbsp;&nbsp;&nbsp;&nbsp;Investment property |  | 3621  | 3427  |
| &nbsp;&nbsp;&nbsp;&nbsp;Assets held for sale |  | 21181  | - |
| &nbsp;&nbsp;&nbsp;&nbsp;Lease assets |  | 68  | 1  |
| &nbsp;&nbsp;&nbsp;&nbsp;Right-of-use assets |  | 3247  | 9712  |
| &nbsp;&nbsp;&nbsp;&nbsp;Gain on other disposals |  | 340  | - |
|  |  | 34163  | 16427  |
| &nbsp;&nbsp;&nbsp;Investments in associates: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Gain on disposal |  | 14701  | 9908 |
| &nbsp;&nbsp;&nbsp;&nbsp;Reversal of impairment loss |  | - | 183 |
|  |  | 14701  | 10091 |
| &nbsp;&nbsp;&nbsp;Others: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Rental income on investment property |  | 35725  | 28708  |
| &nbsp;&nbsp;&nbsp;&nbsp;Reversal of impairment losses on intangible asset |  | 277  | 112  |
| &nbsp;&nbsp;&nbsp;&nbsp;Gain on contribution of assets |  | 1670  | - |
| &nbsp;&nbsp;&nbsp;&nbsp;Bargain purchase gain |  | 3077  | - |
| &nbsp;&nbsp;&nbsp;&nbsp;Others |  | 110405  | 86458 |
|  |  | 151154  | 115278 |
|  |  | 200018 | 141796 |
| **Other non-operating expense** |  |  |  |
| &nbsp;&nbsp;&nbsp;Loss on disposal of assets: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Property and equipment |  | 1185  | 5785  |
| &nbsp;&nbsp;&nbsp;&nbsp;Lease assets |  | 116  | 7  |
| &nbsp;&nbsp;&nbsp;&nbsp;Right-of-use assets |  | 6125  | 804  |
| &nbsp;&nbsp;&nbsp;&nbsp;Others |  | 909  | 50 |
|  |  | 8335  | 6646 |
| &nbsp;&nbsp;&nbsp;Investments in associates: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Loss on disposal |  | 21460  | 5193  |
| &nbsp;&nbsp;&nbsp;&nbsp;Impairment loss |  | 49485  | 43262  |
|  |  | 70945  | 48455 |
| &nbsp;&nbsp;&nbsp;Others: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Donations |  | 170706  | 144212  |
| &nbsp;&nbsp;&nbsp;&nbsp;Depreciation of investment properties |  | 16922  | 15063  |
| &nbsp;&nbsp;&nbsp;&nbsp;Impairment loss on property and equipment |  | 923  | 1650  |
| &nbsp;&nbsp;&nbsp;&nbsp;Impairment loss on intangible assets |  | 1073  | 25468  |
| &nbsp;&nbsp;&nbsp;&nbsp;Write-off of intangible assets |  | 1027  | 1662  |
| &nbsp;&nbsp;&nbsp;&nbsp;Expenses on collection of special bonds |  | 9228  | 10236  |
| &nbsp;&nbsp;&nbsp;&nbsp;Others |  | 236432  | 294160 |
|  |  | 436311  | 492451 |
|  |  | 515591  | 547552 |
| **Other non-operating expenses, net**  | W | (315573) | (405756) |

---

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**46. <u>Income tax expense</u>**

(a) Income tax expense for the years ended December 31, 2025 and 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  |  | **December 31, 2025** | **December 31, 2024** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Current income tax expense | W | 1572116  | 1210083 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Temporary differences |  | 17638  | (163840) |
| Income tax recognized in other comprehensive income |  | 254736  | 424679 |
| Income tax expenses | W | 1844490  | 1470922 |

---

(b) Income tax expense calculated by multiplying net income before tax with the tax rate for the years ended December 31, 2025 and 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  |  | **December 31, 2025** | **December 31, 2024** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Profit before income taxes | W | 6929009  | 6029092 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income taxes at statutory tax rates |  | 1818897  | 1581318 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Adjustments:  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Non-taxable income |  | (20796) | (44370) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Non-deductible expense |  | 23909  | 19755  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Tax credit |  | (1318) | (1484) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Others |  | 23798  | (84297) |
| Income tax expense | W | 1844490  | 1470922  |
| Effective tax rate | % | 26.62  | 24.40 |

---

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**46. <u>Income tax expense (continued)</u>**

(c) Deferred tax expenses by origination and reversal of deferred assets and liabilities and temporary differences for the years ended December 31, 2025 and 2024 are as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  |  | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** |
|  |  | &nbsp;&nbsp;&nbsp;&nbsp;Beginning<br>Balance | Profit or loss | Other comprehensive income (loss) | Ending<br>Balance (\*) |
| &nbsp;&nbsp;Unearned income | W | (430175) | (23729) | - | (453904) |
| &nbsp;&nbsp;Account receivable |  | (36406) | (5060) | - | (41466) |
| &nbsp;&nbsp;Financial assets measured at fair value |  | (379605) | 76414  | 585988  | 282797  |
| &nbsp;&nbsp;Investment in associates |  | 194415  | (18848) | 6229  | 181796  |
| &nbsp;&nbsp;Valuation and depreciation of property and equipment, etc. |  | (103931) | (959) | - | (104890) |
| &nbsp;&nbsp;Derivative asset |  | 51184  | (70745) | 82890  | 63329  |
| &nbsp;&nbsp;Deposits |  | 27279  | 9677  | - | 36956  |
| &nbsp;&nbsp;Accrued expenses |  | 286029  | 40172  | - | 326201  |
| &nbsp;&nbsp;Defined benefit obligation |  | 547095  | 35686  | (8532) | 574249  |
| &nbsp;&nbsp;Plan assets |  | (583708) | (76062) | 13930  | (645840) |
| &nbsp;&nbsp;Other provisions |  | 495417  | 12464  | - | 507881  |
| &nbsp;&nbsp;Allowance for acceptance and<br>guarantees |  | 35484  | 12713  | - | 48197  |
| &nbsp;&nbsp;Allowance related to asset revaluation |  | (47709) | (1999) | - | (49708) |
| &nbsp;&nbsp;Allowance for expensing depreciation |  | (79) | 61  | - | (18) |
| &nbsp;&nbsp;Accrued contributions |  | 57604  | (1561) | - | 56043  |
| &nbsp;&nbsp;Financial assets (liabilities) designated at fair value through profit of loss |  | (112939) | (14065) | - | (127004) |
| &nbsp;&nbsp;Allowances |  | 274218  | (49538) | - | 224680  |
| &nbsp;&nbsp;Constructive dividend |  | 18575  | 848  | - | 19423  |
| &nbsp;&nbsp;Liability under insurance contracts |  | 10356  | (1510) | - | 8846  |
| &nbsp;&nbsp;Others |  | (701922) | (175446) | (425769) | (1303137) |
|  |  | (398818) | (251487) | 254736  | (395569) |
| &nbsp;&nbsp;Expired unused tax losses: |  |  |  |  |  |
| Extinguishment of deposit and insurance liabilities |  | 180503  | (22015) | - | 158488  |
|  | W | (218315) | (273502) | 254736  | (237081) |

---

(\*) Deferred tax assets from overseas subsidiaries are increased by W 1,128 million due to foreign exchange rate movements.

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**46. <u>Income tax expense (continued)</u>**

(c) Deferred tax expenses by origination and reversal of deferred assets and liabilities and temporary differences for the years ended December 31, 2025 and 2024 are as follows (continued):

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  |  | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
|  |  | &nbsp;&nbsp;&nbsp;&nbsp;Beginning<br>Balance | Profit or loss | Other comprehensive income (loss) | Ending<br>Balance (\*1) |
| &nbsp;&nbsp;Unearned income | W | (432276) | 2101 | - | (430175) |
| &nbsp;&nbsp;Account receivable |  | (21354) | (15052) | - | (36406) |
| &nbsp;&nbsp;Financial assets measured at fair value |  | 454253 | (408640) | (425218) | (379605) |
| &nbsp;&nbsp;Investment in associates |  | 188268 | 8543  | (2396) | 194415  |
| &nbsp;&nbsp;Valuation and depreciation of property and equipment etc. |  | (104078) | 147  | - | (103931) |
| &nbsp;&nbsp;Derivative asset |  | 152388  | (79962) | (21242) | 51184  |
| &nbsp;&nbsp;Deposits |  | 33553  | (6274) | - | 27279  |
| &nbsp;&nbsp;Accrued expenses |  | 221458  | 64571  | - | 286029  |
| &nbsp;&nbsp;Defined benefit obligation |  | 544667  | (17567) | 19995  | 547095  |
| &nbsp;&nbsp;Plan assets |  | (617983) | 32565  | 1710  | (583708) |
| &nbsp;&nbsp;Other provisions |  | 510604  | (15187) | - | 495417  |
| &nbsp;&nbsp;Allowance for acceptances and<br>guarantees |  | 22017 | 13467  | - | 35484  |
| &nbsp;&nbsp;Allowance related to asset revaluation |  | (47709) | - | - | (47709) |
| &nbsp;&nbsp;Allowance for expensing depreciation |  | (140) | 61  | - | (79) |
| &nbsp;&nbsp;Accrued contributions |  | 37669 | 19935  | - | 57604  |
| &nbsp;&nbsp;Financial assets (liabilities) designated at fair value through profit of loss |  | (232597) | 119658  | - | (112939) |
| &nbsp;&nbsp;Allowances |  | 224066  | 50152  | - | 274218  |
| &nbsp;&nbsp;Constructive dividend |  | 17718  | 857  | - | 18575  |
| &nbsp;&nbsp;Liability under insurance contracts |  | 11445  | (1089) | - | 10356  |
| &nbsp;&nbsp;Others |  | (1551513) | (2239) | 851830 | (701922) |
|  |  | (589544) | (233953) | 424679 | (398818) |
| &nbsp;&nbsp;Expired unused tax losses: |  |  |  |  |  |
| Extinguishment of deposit and insurance liabilities |  | 200668 | (20165) | - | 180503  |
|  | W | (388876) | (254118) | 424679  | (218315) |

---

(\*1) Deferred tax assets from overseas subsidiaries are increased by W 6,721 million due to foreign exchange rate movements.

(\*2) The Group does not recognize deferred tax assets and liabilities related to global minimum tax laws by applying the temporary exception provision for deferred tax in K-IFRS No. 1012.

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**46. <u>Income tax expense (continued)</u>**

(d) Deferred tax assets and liabilities that are directly charged or credited to equity for the years ended December 31, 2025 and 2024 are as follows:

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | &nbsp;&nbsp;**January 1, 2025** | &nbsp;&nbsp;**January 1, 2025** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Changes** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Changes** | **December 31, 2025** | **December 31, 2025** |
|  |  | &nbsp;&nbsp;**OCI** | &nbsp;&nbsp;**Tax effect** | **OCI** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Tax effect** | **OCI** | **Tax effect** |
| &nbsp;&nbsp;Gain (loss) on valuation of financial assets measured at FVOCI | &nbsp;&nbsp;W | (3112803) | 798285  | (2024457) | 585987  | (5137260) | 1384272  |
| &nbsp;&nbsp;Gain (loss) on financial liabilities designated at FVTPL attributable to changes in credit risk |  | (7566) | 1997  | 1403  | (301) | (6163) | 1696  |
| &nbsp;&nbsp;Foreign currency translation adjustments for foreign operations |  | 296233  | 257  | (140164) | (3785) | 156069  | (3528) |
| &nbsp;&nbsp;Gain (loss) on cash flow hedges |  | 11133  | (7727) | (255994) | 82890  | (244861) | 75163  |
| &nbsp;&nbsp;Equity in other comprehensive income (loss) of associates |  | 7746  | (2044) | (22965) | 6228  | (15219) | 4184  |
| &nbsp;&nbsp;Remeasurements of the defined benefit liability |  | (482002) | 127914  | 183  | 5398  | (481819) | 133312  |
| &nbsp;&nbsp;Net finance income (expense) on insurance contract |  | 739357  | (195219) | 1536884  | (421681) | 2276241  | (616900) |
|  | &nbsp;&nbsp;W | (2547902) | 723463  | (905110) | 254736  | (3453012) | 978199  |

---

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | &nbsp;&nbsp;**January 1, 2024** | &nbsp;&nbsp;**January 1, 2024** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Changes** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Changes** | **December 31, 2024** | **December 31, 2024** |
|  |  | &nbsp;&nbsp;**OCI** | &nbsp;&nbsp;**Tax effect** | **OCI** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Tax effect** | **OCI** | **Tax effect** |
| &nbsp;&nbsp;Gain (loss) on valuation of financial assets measured at FVOCI | &nbsp;&nbsp;W | (4727044) | 1223503 | 1614241 | (425218) | (3112803) | 798285 |
| &nbsp;&nbsp;Gain (loss) on financial liabilities designated at FVTPL attributable to changes in credit risk |  | (5278) | 1393 | (2288) | 604 | (7566) | 1997 |
| &nbsp;&nbsp;Foreign currency translation adjustments for foreign operations |  | (105343) | (13174) | 401576 | 13431 | 296233 | 257 |
| &nbsp;&nbsp;Gain (loss) on cash flow hedges |  | (48623) | 13515 | 59756 | (21242) | 11133 | (7727) |
| &nbsp;&nbsp;Equity in other comprehensive income (loss) of associates |  | (1321) | 352 | 9067 | (2396) | 7746 | (2044) |
| &nbsp;&nbsp;Remeasurements of the defined benefit liability |  | (398538) | 106209 | (83464) | 21705 | (482002) | 127914 |
| &nbsp;&nbsp;Net finance income (expense) on insurance contract |  | 3912910 | (1033014) | (3173553) | 837795 | 739357 | (195219) |
|  | &nbsp;&nbsp;W | (1373237) | 298784 | (1174665) | 424679 | (2547902) | 723463 |

---

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**46. <u>Income tax expense (continued)</u>**

(e) The amount of deductible temporary differences that are not recognized as deferred tax assets as of December 31, 2025 and 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  |  | **December 31, 2025** | **December 31, 2024** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Temporary differences related to<br>Shinhan EZ General Insurance Co., Ltd. (\*1) | W | 135,608 | 109,731 |

---

(\*1) Shinhan EZ General Insurance Co., Ltd., a subsidiary of the Group, suffered a net loss for the current period, etc. As of the end of December 31, 2025, deferred corporate tax assets were not recognized as it was determined that the temporary difference to be deducted in excess of the temporary difference to be added and the tax loss were not feasible.

(\*2) The expiration date of unused carried tax losses not recognized as deferred tax assets as of the end of the reporting period is as follows:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  |  | **Less than**<br>**1 year** | **1~2**<br>**years** | **2~3**<br>**years** | **More than 3 years** | **Total** |
| &nbsp;&nbsp;&nbsp;Tax loss carried-forward | W | 7444  | 9253  | 12361  | 98817  | 127875  |

---

(f) The amount of temporary difference regarding investment in subsidiaries that are not recognized as deferred tax liabilities as of December 31, 2025 and 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  |  | **December 31, 2025** | **December 31, 2024** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investment in subsidiaries, etc. | W | (10643726) | (10203270) |

---

(g) The Group set off a deferred tax asset against a deferred tax liability of the same taxable entity if, and only if, they relate to income taxes levied by the same taxation authority and the entity has a legally enforceable right to set off current tax assets against current tax liabilities. Deferred tax assets and liabilities presented on a gross basis prior to any offsetting as of December 31, 2025 and 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  |  | **December 31, 2025** | **December 31, 2024** |
| Deferred tax assets | W | 1,266,026  | 1,375,325 |
| Deferred tax liabilities |  | 1,503,107  | 1,593,640 |

---

(h) The Group is required, under the implementation of the Global Minimum Corporate Tax Act, to pay additional taxes on the difference where the effective tax rate of each constituent entity, by jurisdiction in which it is located, falls below 15%. The Group has assessed the impact of the Global Minimum Corporate Tax Act in accordance with the relevant legislation and determined that most constituent entities either meet the transitional safe harbor provisions or have effective tax rates exceeding 15%, and therefore no significant additional tax liability is expected to arise in respect of those entities. However, additional tax has arisen in relation to a constituent entity located in Mexico as a result of the application of the Global Minimum Corporate Tax Act, and accordingly, the current income tax expense for the period ended December 31, 2025 includes current income tax expense of W 936 million related thereto.

Income tax expense related to the Global Minimum Corporate Tax Act is subject to estimation uncertainty due to various factors, including tax incentives granted to permanent establishments and accounting adjustments required under the legislation for the calculation of Global Minimum Tax income based on accounting profit or loss for subsequent periods. In addition, the Group has applied the temporary exception to the recognition of deferred taxes under K-IFRS No. 1012 and, accordingly, has not recognized deferred tax assets and liabilities related to the Global Minimum Corporate Tax Act, nor has it disclosed related information.

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**47. <u>Earnings per share</u>**

(a) Basic and diluted earnings per share for the years ended December 31, 2025 and 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  |  | **December 31, 2025** | **December 31, 2024** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Profit attributable to equity holders of Shinhan Financial Group | W | 4971561 | 4450177 |
| Less: |  |  |  |
| &nbsp;&nbsp;&nbsp;Dividends to hybrid bond |  | (197932) | (176945) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Profit attributable to ordinary shareholders | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;W | 4773629 | 4273232 |
| Weighted average number of ordinary shares outstanding (\*) |  | 486484485 | 506231595 |
| Basic and diluted earnings per share in won | W | 9812 | 8441 |

---

(\*) The number of ordinary shares outstanding is 485,494,934 shares, and the above weighted-average number of shares has been calculated by reflecting changes in treasury stock, including shares acquired and subsequently retired, for the years ended December 31, 2025 and 2024.

(b) The calculation details of the weighted average number of ordinary shares for the years ended December 31, 2025 and 2024 are as follows:

---

| | | |
|:---|:---|:---|
|  | **December 31, 2025** | **December 31, 2025** |
|  | **Number of shares** | **Accumulated number of shares** |
| Number of ordinary shares issued | 485494934  | 179923930646  |
| Number of treasury shares | (8337535) | (2357093621) |
| Average number of ordinary shares | 477157399  | 177566837025  |
| Days |  | 365 days |
| Weighted average number of ordinary shares |  | 486484485 |

---

---

| | | |
|:---|:---|:---|
|  | **December 31, 2024** | **December 31, 2024** |
|  | **Number of shares** | **Accumulated number of shares** |
| Number of ordinary shares issued | 503445325 | 186347761912 |
| Number of treasury shares | (4585561) | (1066997991) |
| Average number of ordinary shares | 498859764 | 185280763921 |
| Days |  | 366 days |
| Weighted average number of ordinary shares |  | 506231595 |

---

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**48. <u>Commitments and contingencies</u>**

(a) Guarantees, acceptances and credit commitments as of December 31, 2025 and 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  |  | **December 31, 2025** | **December 31, 2024** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Guarantees and purchase agreements: |  |  |  |
| &nbsp;&nbsp;&nbsp;Outstanding guarantees  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;W | 18642539  | 15315381 |
| &nbsp;&nbsp;&nbsp;Contingent guarantees  |  | 4917473  | 5068782 |
| &nbsp;&nbsp;&nbsp;ABS and ABCP purchase agreements |  | 2649382  | 2123665 |
|  |  | 26209394  | 22507828 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Commitments to extend credit: |  |  |  |
| &nbsp;&nbsp;&nbsp;Loan commitments in won |  | 95042772  | 93064772 |
| &nbsp;&nbsp;&nbsp;Loan commitments in foreign currency  |  | 25559545  | 28613692 |
| &nbsp;&nbsp;&nbsp;Unused credit commitments |  | 93230869  | 90700766 |
| &nbsp;&nbsp;&nbsp;Other agreements |  | 6483867  | 6601564 |
|  |  | 220317053  | 218980794 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Endorsed bills: |  |  |  |
| &nbsp;&nbsp;&nbsp;Secured endorsed bills |  | 12574  | 1367 |
| &nbsp;&nbsp;&nbsp;Unsecured endorsed bills |  | 10560935  | 11937894 |
|  |  | 10573509  | 11939261 |
|  | W | 257099956  | 253427883 |

---

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**48. <u>Commitments and contingencies (continued)</u>**

(b) Pending litigations

The Group's pending lawsuits as a defendant as of December 31, 2025 are as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Case** | **Number of claims** |  | **Claim** <br>**amount** | **Description** | **Status** |
| &nbsp;&nbsp;Return of unjust earning | 1  | W | 5027  | &nbsp;&nbsp;The plaintiff, a residents' representative council composed of apartment residents, claims that, following a final court judgment invalidating the formation of the 5th and 6th residents' representative councils of the apartment complex, illegal acts occurred in the handling of the plaintiff's Shinhan Bank account, including the transfer of account ownership, in connection with a change in the plaintiff's representative at the time, thereby causing damages to the plaintiff. | &nbsp;&nbsp;&nbsp;&nbsp;The first trial is ongoing as of December 31, 2025. |
| Loss claim | 2  |  | 73830  | &nbsp;&nbsp;A case in which OO Bank and OO Securities filed a lawsuit for damages against employees of Shinhan Securities Co., Ltd. alleging their involvement in the illegal activities of Lime Asset Management. | &nbsp;&nbsp;&nbsp;&nbsp;The second trial is ongoing as of December 31, 2025. (\*1) |
| Loss claim | 2  |  | 36937  | &nbsp;&nbsp;A case in which OO Bank and OO Securities filed a lawsuit for damages against employees of Shinhan Securities Co., Ltd. alleging their involvement in the illegal activities of Lime Asset Management. | &nbsp;&nbsp;&nbsp;&nbsp;The first trial is ongoing as of December 31, 2025. (\*2) |
| &nbsp;&nbsp;Loss claim regarding responsibility for construction completion in a management-type land trust  | 9 |  | 261630 | &nbsp;&nbsp;Lenders holding claims for principal and interest have filed lawsuits for damages against Shinhan Asset Trust Co., Ltd., regarding its failure to meet construction completion deadlines under managed land trust agreements with completion guarantees | &nbsp;&nbsp;&nbsp;&nbsp;(\*3) |
| &nbsp;&nbsp;Other trust-related litigations | 718  |  | 640999 | &nbsp;&nbsp;Claims against Shinhan Asset Trust Co., Ltd. for defect-related damages, refund of the purchase price, and other related claims | &nbsp;&nbsp;&nbsp;&nbsp;(\*4) |
| &nbsp;&nbsp;Others | 465 |  | 390946 | &nbsp;&nbsp;Includes multiple cases: Shinhan Bank W 164,553 million (264 cases), Shinhan Card W 13,206 million (49 cases), Shinhan Securities W 120,534 million (28 cases), Shinhan Life W 10,350 million (93 cases), Shinhan Capital W 30,864 million (4 cases), and others. | &nbsp;&nbsp;&nbsp;&nbsp;(\*5) |
|  | 1197  | W | 1409369 |  |  |

---

(\*1) Following a partial loss in the first trial on February 14, 2025, approximately W 63,200 million was paid. An appeal has been filed and the case is currently pending in the second trial.

(\*2) Subsequent to the end of the reporting period, a partial loss was decided in the first trial on February 5, 2026, and approximately W 41,500 million was paid. As of December 31, 2025 the Group has recognized litigation provisions of approximately W 40,100 million.

(\*3) As of the end of the reporting period, there were five cases pending in the court of first instance (claim amount: W 169,930 million) and four cases pending in the court of second instance (claim amount: W 91,700 million). However, subsequent to the reporting period, all cases were concluded through withdrawal of the lawsuits following separate settlements with the plaintiffs.

(\*4) These lawsuits are related to the trust business of Shinhan Asset Trust Co., Ltd. In the event of a loss, the judgment amount (principal and interest) will be paid from the trust account or can be recovered through a right of

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

indemnity against trust-related parties. Accordingly, the impact on the Group's own account is expected to be limited.

**48. <u>Commitments and contingencies (continued)</u>**

(b) Pending litigations (continued)

The Group's pending lawsuits as a defendant as of December 31, 2025 are as follows (continued):

(\*5) Subsequent to the reporting period, on February 11, 2026, the Company received an unfavorable ruling at the court of first instance in a loss claim related to its trust business (1 case, claim amount: W 7,005 million), and on February 12, 2026, the Company also received a partially unfavorable ruling at the court of second instance in a lawsuit claiming agreed payments filed by a petitioner (1 case, claim amount: W 5,000 million). As of December 31, 2025, the Group recognized provisions for litigation amounting to W 3,694 million and W 7,379 million, respectively, in relation to the above cases. The cases are currently pending on appeal and before the Supreme Court, respectively.

As of December 31, 2025, the Group has recorded W 144,173 million and W 5,732 million, respectively, as other provisions and insurance contract liabilities for litigations, etc., which have been decided to lose at the first trial. The outcome of the remaining litigations other than those accounted for provisions, etc. are not expected to have a material impact on the consolidated financial statements, but additional losses may result from future litigation.

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**48. <u>Commitments and contingencies (continued)</u>**

(c) As a Prime Brokerage Service (PBS) provider, Shinhan Securities Co., Ltd. entered into a total return swap (TRS) agreement, derivatives that exchange profits and losses from underlying assets such as stocks, bonds, and funds, with a fund managed by Lime Asset Management (the "Lime Fund"). Through the TRS agreement with Shinhan Securities Co., Ltd., the Lime Fund invested approximately USD 200 million in the IIG Global Trade Finance Fund, IIG Trade Finance Fund, and IIG Trade Finance Fund–FX Hedge (hereinafter referred to as the "IIG Fund") between May and September 2017. In 2019, under the management instructions of Lime Asset Management, Shinhan Securities Co., Ltd. made an in-kind investment of the IIG Fund into LAM Enhanced Finance III L.P. (the "LAM III Fund") and acquired beneficiary certificates of the LAM III Fund. The recoverable value of the LAM III Fund's beneficiary certificates is dependent on the recoverable value of the IIG Fund previously invested in kind. In November 2019, the IIG Fund was subject to a registration cancellation and asset freeze by the U.S. Securities and Exchange Commission (SEC).

In its interim inspection report issued in February 2020, the Financial Supervisory Service (FSS) stated that Shinhan Securities Co., Ltd. was involved in concealing losses and committing fraud in connection with the Lime Fund while operating TRS agreements, and a related prosecution investigation has since been ongoing. On November 12, 2021, the Financial Services Commission (FSC) finalized institutional sanctions against Shinhan Securities Co., Ltd., including a six-month ban on the sale of new private equity funds. In addition, the former director of Prime Brokerage Services at Shinhan Securities Co., Ltd. was arrested and indicted on charges of fraud and violation of the Financial Investment Services and Capital Markets Act. The director was subsequently found guilty.

On January 22, 2021, the prosecution indicted Shinhan Securities Co., Ltd. for violations of the Financial Investment Services and Capital Markets Act arising from the actions of the former director of its Prime Brokerage Services (PBS) division. Subsequently, on March 15, 2023, the court imposed a fine of W 50 million on Shinhan Securities for breach of its supervisory duties.

Taking into consideration the resolutions of the Board of Directors and the results of the dispute settlement committee of the Financial Supervisory Service, Shinhan Securities Co., Ltd. has completed, or plans to carry out, compensation and liquidity support for certain products, including the Lime Trade Finance Fund.

(d) From May 2014 to November 2019, Shinhan Securities Co., Ltd. sold trust instruments related to the Gen2 project. As of December 31, 2025, redemptions for the entire outstanding balance of approximately W 420 billion have been suspended, and repayments have been delayed. In accordance with a resolution of the Board of Directors dated September 28, 2021, Shinhan Securities Co., Ltd. decided to compensate customers who agreed to the suspension of redemption by paying 40% of their invested principal, with the remaining balance to be settled upon recovery of the underlying investments. On August 29, 2023, the Board of Directors resolved to proceed with a private settlement under a post-settlement arrangement. Furthermore, on December 8, 2023, the Board resolved to proceed with private settlements under a post-settlement arrangement for the NH-UK Peterborough Power Plant Trust product, and on September 2, 2025, the Complaints Review Committee resolved to apply the same approach to the Lime M360 Fund and other related trust products.

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**48. <u>Commitments and contingencies (continued)</u>**

(e) Shinhan Asset Trust Co., Ltd. is engaged in completion-guaranteed land trust projects, under which the company assumes responsibility for ensuring project completion in the event the contractor fails to do so. If Shinhan Asset Trust Co., Ltd. fails to fulfill this obligation, it is liable to compensate financial institutions for any losses incurred. For the period ended December 31, 2025, Shinhan Asset Trust Co., Ltd. had entered into agreements for a total of 16 projects (including those already completed), such as a studio apartment development in Sincheon-dong, Siheung-si, Gyeonggi Province, under a management-type land trust with a guaranteed completion clause. As of December 31, 2025, the total project financing (PF) commitment amount from financial institutions related to these projects was W 1,059,277 million, and the outstanding PF loan balance amounted to W 993,054 million.

As of December 31, 2025, the guaranteed completion deadlines for 8 project sites (including completed ones) have passed. The total project financing (PF) loan commitment limits for these sites amount to W 249,927 million, with loan balances of W 224,123 million.

Shinhan Asset Trust Co., Ltd. continuously assesses the impact of off-balance sheet commitments to ensure that they are appropriately reflected in the financial statements, if necessary.

(f) As of December 31, 2025, Shinhan Asset Trust Co., Ltd. may lend a portion of the total project cost to the trust account in relation to loan-type land trust agreements, etc., and the maximum commitment amount of PF loans (unused limit) is W 263,836 million. Regarding the project, Shinhan Asset Trust Co., Ltd. is not unconditionally obligated to provide trust account loans. Instead, such decisions are made after comprehensively considering factors such as the proprietary account and the cash flow plans of each trust project.

(g) As of December 31, 2025, Shinhan Securities Co., Ltd. is under investigation by the Korea Fair Trade Commission regarding alleged unfair collusion among financial institutions*.* In addition, Shinhan Life Insurance is expected to receive inspection results and corrective action requirements for certain matters identified during the regular examination conducted by the Financial Supervisory Service in 2023.

(h) Shinhan Bank, in accordance with the *Dual Recourse Bonds Act* and the covered bond issuance program agreement, separately registers and manages a cover pool to secure the repayment of covered bonds. To maintain the eligibility of the cover pool, Shinhan Bank performs a collateral maintenance ratio test on each calculation date to ensure that the adjusted total collateral amount remains at or above a specified percentage (minimum collateral ratio) of the outstanding issuance balance. In addition, from 12 months prior to the maturity of covered bonds, Shinhan Bank conducts a pre-maturity liquidity test and has agreed to pre-accumulate liquidity assets necessary for repayment at maturity upon the occurrence of certain events, such as a credit rating downgrade.

As of December 31, 2025 and 2024, the carrying amounts of covered bonds issued by Shinhan Bank are W 1,916,820 million and W 1,852,365 million, respectively. The carrying amounts of the cover pools (including residential mortgage loans and liquidity assets) established to comply with the above agreements are W 3,647,109 million and W 4,458,312 million, respectively.

(i) Shinhan Card Co., Ltd. is currently subject to an investigation by the supervisory authorities in connection with the leakage of personal information of merchant representatives that occurred between March 2022 and May 2025. The outcome of the investigation cannot be reasonably estimated as of December 31, 2025.

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**49. <u>Statement of cash flows</u>**

(a) Cash and cash equivalents in the consolidated statements of cash flows as of December 31, 2025 and 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  |  | **December 31, 2025** | **December 31, 2024** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash and due from banks at amortized cost | W | 39758705 | 40547054 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Adjustments: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Due from financial institutions with a maturity over three months from date of acquisition |  | (966755) | (1655932) |
| &nbsp;&nbsp;Restricted due from banks |  | (3496827) | (3643579) |
|  |  | (4463582) | (5299511) |
|  | W | 35295123  | 35247543 |

---

(b) Significant non-cash activities for the years ended December 31, 2025 and 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  |  | **December 31, 2025** | **December 31, 2024** |
| &nbsp;&nbsp;Transfers from construction-in-progress to property and equipment | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;W | 36258  | 26185 |
| &nbsp;&nbsp;Transfers between property and equipment and investment property |  | 4829  | 77752 |
| &nbsp;&nbsp;Transfers between assets held for sale and property and equipment |  | 11880  | 1039 |
| &nbsp;&nbsp;Transfers between investment property and assets held for sale |  | 52138  | 5551 |
| &nbsp;&nbsp;Accounts payable for purchase of intangible assets, etc. |  | (92368) | (132270) |
| &nbsp;&nbsp;Transaction for right-of-use assets |  | 226747  | 578651 |

---

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**49. <u>Statement of cash flows (continued)</u>**

(c) Changes in assets and liabilities arising from financing activities for the years ended December 31, 2025 and 2024 are as follows:

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | &nbsp;&nbsp;**December 31, 2025** | &nbsp;&nbsp;**December 31, 2025** | &nbsp;&nbsp;**December 31, 2025** | &nbsp;&nbsp;**December 31, 2025** | &nbsp;&nbsp;**December 31, 2025** | &nbsp;&nbsp;**December 31, 2025** |
|  |  | &nbsp;&nbsp;**Net Derivative liabilities** | &nbsp;&nbsp;**Borrowings** | &nbsp;&nbsp;**Debt securities issued** | &nbsp;&nbsp;**Lease liabilities** | &nbsp;&nbsp;**Financial liabilities designated at FVTPL** | &nbsp;&nbsp;**Total** |
| &nbsp;&nbsp;Beginning balance | &nbsp;&nbsp;W | &nbsp;&nbsp;(140273) | &nbsp;&nbsp;49920373  | &nbsp;&nbsp;93765854  | &nbsp;&nbsp;890689  | &nbsp;&nbsp;261299  | &nbsp;&nbsp;144697942  |
| &nbsp;&nbsp;Changes from cash flows |  | &nbsp;&nbsp;148779  | &nbsp;&nbsp;5125412  | &nbsp;&nbsp;(753062) | &nbsp;&nbsp;(281530) | &nbsp;&nbsp;49985  | &nbsp;&nbsp;4289584  |
| &nbsp;&nbsp;Non-cash changes: |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest expense<br>&nbsp;&nbsp;&nbsp;&nbsp;(Amortization) |  | &nbsp;&nbsp;- | &nbsp;&nbsp;(100672) | &nbsp;&nbsp;42896  | &nbsp;&nbsp;20984  | &nbsp;&nbsp;- | &nbsp;&nbsp;(36792) |
| &nbsp;&nbsp;&nbsp;&nbsp;Changes in foreign currency  |  | &nbsp;&nbsp;- | &nbsp;&nbsp;60971  | &nbsp;&nbsp;(210960) | &nbsp;&nbsp;(7204) | &nbsp;&nbsp;15  | &nbsp;&nbsp;(157178) |
| &nbsp;&nbsp;Other |  | &nbsp;&nbsp;(285623) | &nbsp;&nbsp;388750  | &nbsp;&nbsp;146694  | &nbsp;&nbsp;167400  | &nbsp;&nbsp;(23450) | &nbsp;&nbsp;393771  |
| &nbsp;&nbsp;Ending balance | &nbsp;&nbsp;W | &nbsp;&nbsp;(277117) | &nbsp;&nbsp;55394834  | &nbsp;&nbsp;92991422  | &nbsp;&nbsp;790339  | &nbsp;&nbsp;287849  | &nbsp;&nbsp;149187327  |

---

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | &nbsp;&nbsp;**December 31, 2024** | &nbsp;&nbsp;**December 31, 2024** | &nbsp;&nbsp;**December 31, 2024** | &nbsp;&nbsp;**December 31, 2024** | &nbsp;&nbsp;**December 31, 2024** | &nbsp;&nbsp;**December 31, 2024** |
|  |  | &nbsp;&nbsp;**Net Derivative liabilities** | &nbsp;&nbsp;**Borrowings** | &nbsp;&nbsp;**Debt securities issued** | &nbsp;&nbsp;**Lease liabilities** | &nbsp;&nbsp;**Financial liabilities designated at FVTPL** | &nbsp;&nbsp;**Total** |
| &nbsp;&nbsp;Beginning balance | &nbsp;&nbsp;W | &nbsp;&nbsp;358017  | &nbsp;&nbsp;56901352  | &nbsp;&nbsp;81561725  | &nbsp;&nbsp;613914  | &nbsp;&nbsp;254832  | &nbsp;&nbsp;139689840  |
| &nbsp;&nbsp;Changes from cash flows |  | &nbsp;&nbsp;119361 | &nbsp;&nbsp;(8231239) | &nbsp;&nbsp;9578027 | &nbsp;&nbsp;(272634) | &nbsp;&nbsp;- | &nbsp;&nbsp;1193515 |
| &nbsp;&nbsp;Non-cash changes: |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest expense<br>&nbsp;&nbsp;&nbsp;&nbsp;(Amortization) |  | &nbsp;&nbsp;- | &nbsp;&nbsp;(131663) | &nbsp;&nbsp;(4401) | &nbsp;&nbsp;22787 | &nbsp;&nbsp;- | &nbsp;&nbsp;(113277) |
| &nbsp;&nbsp;&nbsp;&nbsp;Changes in foreign currency  |  | &nbsp;&nbsp;- | &nbsp;&nbsp;770798 | &nbsp;&nbsp;2178255 | &nbsp;&nbsp;28602 | &nbsp;&nbsp;- | &nbsp;&nbsp;2977655 |
| &nbsp;&nbsp;Other |  | &nbsp;&nbsp;(617651) | &nbsp;&nbsp;611125 | &nbsp;&nbsp;452248 | &nbsp;&nbsp;498020 | &nbsp;&nbsp;6467 | &nbsp;&nbsp;950209 |
| &nbsp;&nbsp;Ending balance | &nbsp;&nbsp;W | &nbsp;&nbsp;(140273) | &nbsp;&nbsp;49920373 | &nbsp;&nbsp;93765854 | &nbsp;&nbsp;890689 | &nbsp;&nbsp;261299 | &nbsp;&nbsp;144697942 |

---

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**50. <u>Related parties</u>**

Intra-group balances, and income and expenses arising from intra-group transactions are eliminated in preparing the consolidated financial statements. In accordance with K-IFRS No. 1024, the Group defines the retirement benefit plans of the associates, key management and their families, the consolidation group and related parties as the scope of related parties. The amount of profit and loss, bond and debt balance between the Group and the related parties are disclosed. For details of the subsidiaries and associates, refer to 'Note 16'.

(a) Balances with the related parties as of December 31, 2025 and 2024 are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Related party** | **Account** |  | **December 31, 2025** | **December 31, 2024** |
| **Investments in associates:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;BNP Paribas Cardif Life Insurance | Credit card loans | W | 190  | 154 |
| &nbsp;&nbsp;&nbsp;&nbsp;〃 | ACL |  | (1) | (1) |
| &nbsp;&nbsp;&nbsp;&nbsp;〃 | Accrued income |  | 14  | 23 |
| &nbsp;&nbsp;&nbsp;&nbsp;〃 | Deposits |  | 3855  | 5559 |
| &nbsp;&nbsp;&nbsp;&nbsp;〃 | Allowance for Undrawn Commitment |  | 1  | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;Incorporated association Finance Saving Information Center | Credit card loans |  | 1  | 2 |
| &nbsp;&nbsp;&nbsp;&nbsp;〃 | Deposits |  | 4  | 3 |
| &nbsp;&nbsp;&nbsp;&nbsp;Nomura-Rifa Private Real Estate Investment Trust 19 | Loans |  | 11400  | 11700 |
| &nbsp;&nbsp;&nbsp;&nbsp;〃 | ACL |  | (3781) | (247) |
| &nbsp;&nbsp;&nbsp;&nbsp;〃 | Accrued income |  | 47  | - |
| &nbsp;&nbsp;&nbsp;&nbsp;SH MAIN Professional Investment Type Private Mixed Asset Investment Trust No.3 (\*) | Accrued income |  | - | 71 |
| &nbsp;&nbsp;&nbsp;&nbsp;Korea Finance Security Co., Ltd. | Deposits |  | 123  | 131 |
| &nbsp;&nbsp;&nbsp;&nbsp;〃 | Credit card loans |  | 7  | 6 |
| &nbsp;&nbsp;&nbsp;&nbsp;Korea Credit Bureau | Deposits |  | 1671  | 24 |
| &nbsp;&nbsp;&nbsp;&nbsp;〃 | Credit card loans |  | 907  | 616 |
| &nbsp;&nbsp;&nbsp;&nbsp;〃 | ACL |  | - | (1) |
| &nbsp;&nbsp;&nbsp;&nbsp;Goduck Gangil1 PFV Co., Ltd. | Deposits |  | - | 4 |
| &nbsp;&nbsp;&nbsp;&nbsp;SBC PFV Co., Ltd. | Loans |  | 519800  | 984600 |
| &nbsp;&nbsp;&nbsp;&nbsp;〃 | ACL |  | (3990) | (1345) |
| &nbsp;&nbsp;&nbsp;&nbsp;〃 | Accrued income |  | 93  | 89 |
| &nbsp;&nbsp;&nbsp;&nbsp;〃 | Allowance for Undrawn Commitment |  | 771  | - |
| &nbsp;&nbsp;&nbsp;&nbsp;〃 | Deposits |  | 1  | 105 |
| &nbsp;&nbsp;&nbsp;&nbsp;Goduck Gangil10 PFV Co., Ltd. | Deposits |  | 340  | 11899 |
| &nbsp;&nbsp;&nbsp;&nbsp;EDNCENTRAL Co., Ltd. (\*) | Loans |  | - | 25400 |
| &nbsp;&nbsp;&nbsp;&nbsp;〃 | ACL |  | - | (74) |
| &nbsp;&nbsp;&nbsp;&nbsp;〃 | Accrued income |  | - | 64 |
| &nbsp;&nbsp;&nbsp;&nbsp;〃 | Deposits |  | - | 1170 |
| &nbsp;&nbsp;&nbsp;&nbsp;〃 | Provisions |  | - | 156 |
| &nbsp;&nbsp;&nbsp;&nbsp;Shinhan Global Healthcare Fund 2 | Deposits |  | 1  | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;Future-Creation Neoplux Venture Capital Fund | Account receivables |  | 3600  | 3600 |
| &nbsp;&nbsp;&nbsp;&nbsp;Gyeonggi-Neoplux Superman Fund | Account receivables |  | - | 1696 |
| &nbsp;&nbsp;&nbsp;&nbsp;Shinhan-Neoplux Energy Newbiz Fund  | Account receivables |  | 643  | 721 |
| &nbsp;&nbsp;&nbsp;&nbsp;SHINHAN-NEO Core Industrial Technology Fund | Account receivables |  | 288  | 399 |
| &nbsp;&nbsp;&nbsp;&nbsp;Neoplux No.3 Private Equity Fund | Account receivables |  | 9240  | 7532 |
| &nbsp;&nbsp;&nbsp;&nbsp;Wave Technology | Deposits |  | 106  | 115 |

---

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**50. <u>Related parties (continued)</u>**

(a) Balances with the related parties as of December 31, 2025 and 2024 are as follows (continued):

---

| | | | | |
|:---|:---|:---|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;**Related party** | **Account** |  | **December 31, 2025** | **December 31, 2024** |
| **Investments in associates (continued):** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;SHINHAN-NEO Market-Frontier 2nd Fund | Account receivables | W | 1485  | 1402 |
| &nbsp;&nbsp;&nbsp;&nbsp;iPIXEL Co., Ltd. | Credit card loans |  | 10  | 14 |
| &nbsp;&nbsp;&nbsp;&nbsp;〃 | ACL |  | - | (1) |
| &nbsp;&nbsp;&nbsp;&nbsp;〃 | Deposits |  | 74  | 717 |
| &nbsp;&nbsp;&nbsp;&nbsp;〃 | Allowance for Undrawn Commitment |  | - | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;NewWave 6th Fund | Account receivables |  | 791  | 877 |
| &nbsp;&nbsp;&nbsp;&nbsp;DDI LVC Master Real Estate Investment Trust Co., Ltd. | Deposits |  | 784  | 852 |
| &nbsp;&nbsp;&nbsp;&nbsp;Logisvalley Shinhan REIT Co., Ltd. | Loans |  | 33000  | 33000 |
| &nbsp;&nbsp;&nbsp;&nbsp;〃 | ACL |  | (29) | (30) |
| &nbsp;&nbsp;&nbsp;&nbsp;〃 | Accrued income |  | 75  | 75 |
| &nbsp;&nbsp;&nbsp;&nbsp;〃 | Deposits |  | 932  | 1340 |
| &nbsp;&nbsp;&nbsp;&nbsp;Shinhan-Albatross tech investment Fund | Deposits |  | 2331  | 4339 |
| &nbsp;&nbsp;&nbsp;&nbsp;Shinhan VC tomorrow venture fund 1 | Account receivables |  | 2992  | 2474 |
| &nbsp;&nbsp;&nbsp;&nbsp;JS Shinhan Private Equity Fund | Accrued income |  | 289  | - |
| &nbsp;&nbsp;&nbsp;&nbsp;Shinhan Time 1st Investment fund | Deposits |  | - | 64 |
| &nbsp;&nbsp;&nbsp;&nbsp;NH-J&-IBKC Label Technology Fund | Deposits |  | 44  | 59 |
| &nbsp;&nbsp;&nbsp;&nbsp;SH K-REITs Infra Real Estate Investment Trust (FoFs) | Accrued income |  | 5  | 5 |
| &nbsp;&nbsp;&nbsp;&nbsp;Shinhan-CJ TechInnovation Fund 1st | Deposits |  | 3500  | 3100 |
| &nbsp;&nbsp;&nbsp;&nbsp;SH US Buyback&High Dividend Security Feeder Investment Trust(H)[Equity] | Accrued income |  | 14  | 12 |
| &nbsp;&nbsp;&nbsp;&nbsp;SH Prestige High Dividend Security Feeder No.1[Equity] | Accrued income |  | 34  | 14 |
| &nbsp;&nbsp;&nbsp;&nbsp;Shinhan General Private Real Estate Investment Trust No.3 | Accrued income |  | 50  | 44 |
| &nbsp;&nbsp;&nbsp;&nbsp;Capstone REITs No.26 | Loans |  | 20000  | 20000 |
| &nbsp;&nbsp;&nbsp;&nbsp;〃 | ACL |  | (21) | (21) |
| &nbsp;&nbsp;&nbsp;&nbsp;〃 | Accrued income |  | 93  | 90 |
| &nbsp;&nbsp;&nbsp;&nbsp;Shinhan Mid and Small-Sized Office Value-Added MO REIT Co., Ltd. | Accrued income |  | 146  | 145 |
| &nbsp;&nbsp;&nbsp;&nbsp;Shinhan-GB FutureFlow Fund L.P. | Account receivables |  | - | 41 |
| &nbsp;&nbsp;&nbsp;&nbsp;LB Scotland Amazon Fulfillment Center Fund 29 | Derivative assets |  | - | 503 |
| &nbsp;&nbsp;&nbsp;&nbsp;Shinhan AIM FoF Fund 1-A | Derivative assets |  | - | 3511 |
| &nbsp;&nbsp;&nbsp;&nbsp;PineStreet Global Corporate FoF XIII-2 | Derivative assets |  | 469  | 104 |
| &nbsp;&nbsp;&nbsp;&nbsp;〃 | Derivative liabilities |  | 17  | - |
| &nbsp;&nbsp;&nbsp;&nbsp;CASCADETECH INC | Deposits |  | 11  | 35 |
| &nbsp;&nbsp;&nbsp;&nbsp;Songpa biz cluster PFV Co., Ltd. | Loans |  | 70272  | 22424 |
| &nbsp;&nbsp;&nbsp;&nbsp;〃 | ACL |  | (521) | (119) |
| &nbsp;&nbsp;&nbsp;&nbsp;〃 | Accrued income |  | 129  | 26 |
| &nbsp;&nbsp;&nbsp;&nbsp;〃 | Allowance for Undrawn Commitment |  | - | 95 |
| &nbsp;&nbsp;&nbsp;&nbsp;STIC ALT Global II Private Equity Fund | Deposits |  | 805  | 2207 |
| &nbsp;&nbsp;&nbsp;&nbsp;TECHFIN RATINGS Co., Ltd.  | Credit card loans |  | 28  | 13 |
| 〃 | ACL |  | - | (2) |
| 〃 | Deposits |  | 13548  | 21611 |
| 〃 | Allowance for Undrawn Commitment |  | 1  | 7 |

---

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**50. <u>Related parties (continued)</u>**

(a) Balances with the related parties as of December 31, 2025 and 2024 are as follows (continued):

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Related party** | **Account** |  | **December 31, 2025** | **December 31, 2024** |
| **Investments in associates (continued):** |  |  |  |  |
| Nomura-Rifa Private Real Estate Investment Trust 31 | Loans | W | 13860  | 14000  |
| 〃 | ACL |  | (54) | (27) |
| Pacific Private Placement Real Estate Fund No.40 | Loans |  | 14000  | 14000  |
| 〃 | ACL |  | (99) | (75) |
| 〃 | Accrued income |  | 152  | 124  |
| Shinhan-DS Mezzanine Fund 1 | Unearned revenue |  | 88  | 93  |
| Shinhan-Csquared Mezzanine Fund 1 | Unearned revenue |  | 19  | 19  |
| KR Seocho Co., Ltd | Loans |  | 11871  | 11871  |
| 〃 | ACL |  | (228) | (213) |
| 〃 | Accrued income |  | 1691  | 573  |
| KB Distribution Private Real Estate 3-1 | Loans |  | - | 2000  |
| 〃 | ACL |  | - | (4) |
| 〃 | Accrued income |  | - | 17  |
| Shinhan-Dev healthcare Fund I | Unearned revenue |  | 8  | - |
| Credila Financial Services | Loans |  | 19895  | - |
| 〃 | ACL |  | (78) | - |
| 〃 | Deposits |  | 3196  | - |
| Shinhan Rio Green Private Equity Fund | Account receivables |  | 79  | - |
| D2U 12th Fund | Deposits |  | 400  | - |
| Finflow | Deposits |  | 574  | - |
| Fireant Media and Digital Service Joint Stock Company | Deposits |  | 4  | - |
| SH US Long Term Treasury Plus Security Feeder Investment Trust(H)[Bond-FoFs] | Accrued income |  | 4  | - |
| IGIS Yongsan Office General Private Real Estate Investment Trust 518 | Loans |  | 20000  | 20000  |
| 〃 | ACL |  | (141) | (107) |
| 〃 | Accrued income |  | 140  | 140  |
| Shinhan-BNK Global Fund I | Unearned revenue |  | 44  | - |
| &nbsp;&nbsp;**Key management personnel** <br>**and their immediate relatives:** | Loans |  | 4558  | 3402  |
|  | Assets |  | 753419  | 1185307  |
|  | Liabilities | W | 33253  | 53707  |

---

(\*) Excluded from the associates due to disposal and liquidation for the year ended December 31, 2025.

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**50. <u>Related parties (continued)</u>**

(b) Transactions with the related parties for the years ended December 31, 2025 and 2024 are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Related party** | **Account** |  | **December 31, 2025** | **December 31, 2024** |
| **Investments in associates:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;BNP Paribas Cardif Life Insurance | Fees and commission income | W | 1669  | 1312  |
| &nbsp;&nbsp;&nbsp;&nbsp;〃 | Interest expense |  | (12) | (12) |
| &nbsp;&nbsp;&nbsp;&nbsp;Shinhan-Albatross tech investment Fund | Fees and commission income |  | 514  | 1047  |
| &nbsp;&nbsp;&nbsp;&nbsp;〃 | Interest expense |  | (7) | (12) |
| &nbsp;&nbsp;&nbsp;&nbsp;Shinhan-Nvestor Liquidity Solution Fund | Fees and commission income |  | 174  | 192  |
| &nbsp;&nbsp;&nbsp;&nbsp;Shinhan-PS Investment Fund No.1 | Fees and commission income |  | 8  | 20  |
| &nbsp;&nbsp;&nbsp;&nbsp;Nomura-Rifa Private Real Estate Investment Trust 19 | Interest income |  | 574  | 588  |
| &nbsp;&nbsp;&nbsp;&nbsp;〃 | Reversal of (provision for) credit loss allowance |  | (3533) | 223  |
| &nbsp;&nbsp;&nbsp;&nbsp;SH MAIN Professional Investment Type Private Mixed Asset Investment Trust No.3 (\*2) | Fees and commission income |  | 176  | 886  |
| &nbsp;&nbsp;&nbsp;&nbsp;Korea Finance Security Co., Ltd. | Fees and commission income |  | 3  | 4  |
| &nbsp;&nbsp;&nbsp;&nbsp;〃 | Other administrative expense |  | (145) | (145) |
| &nbsp;&nbsp;&nbsp;&nbsp;ShinHan – Soo Young Entrepreneur Investment Fund No.1 | Fees and commission income |  | 2072  | 3122  |
| &nbsp;&nbsp;&nbsp;&nbsp;Kiwoom-Shinhan Innovation Fund I | Fees and commission income |  | 28  | 148  |
| &nbsp;&nbsp;&nbsp;&nbsp;FuturePlay-Shinhan TechInnovation Fund 1 | Fees and commission income |  | 179  | 158  |
| &nbsp;&nbsp;&nbsp;&nbsp;Korea Credit Bureau | Fees and commission income |  | 3803  | 1753  |
| &nbsp;&nbsp;&nbsp;&nbsp;〃 | Fees and commission expense |  | (5060) | (4830) |
| &nbsp;&nbsp;&nbsp;&nbsp;〃 | Other administrative expense |  | (1093) | (91) |
| &nbsp;&nbsp;&nbsp;&nbsp;〃 | Reversal of allowance for credit losses |  | 1  | - |
| &nbsp;&nbsp;&nbsp;&nbsp;〃 | Interest expense |  | (10) | - |
| &nbsp;&nbsp;&nbsp;&nbsp;SBC PFV Co., Ltd. | Fees and commission income |  | 29145  | 7839  |
| &nbsp;&nbsp;&nbsp;&nbsp;〃 | Interest income |  | 45135  | 36957  |
| &nbsp;&nbsp;&nbsp;&nbsp;〃 | Interest expense |  | - | (13) |
| &nbsp;&nbsp;&nbsp;&nbsp;〃 | Provision for credit losses |  | (2645) | (679) |
| &nbsp;&nbsp;&nbsp;&nbsp;〃 | Provision for unused commitments |  | (771) | - |

---

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**50. <u>Related parties (continued)</u>**

(b) Transactions with the related parties for the years ended December 31, 2025 and 2024 are as follows (continued):

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Related party** | **Account** |  | **December 31, 2025** | **December 31, 2024** |
| **Investments in associates (continued):** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Goduck Gangil10 PFV Co., Ltd. | Interest income | W | - | 30  |
| &nbsp;&nbsp;&nbsp;&nbsp;〃 | Interest expense |  | (78) | (295) |
| &nbsp;&nbsp;&nbsp;&nbsp;〃 | Reversal of allowance for credit losses |  | - | 17  |
| &nbsp;&nbsp;&nbsp;&nbsp;Korea Omega-Shinhan Project Fund I | Fees and commission income |  | 3756  | 146  |
| &nbsp;&nbsp;&nbsp;&nbsp;Sparklabs-Shinhan Opportunity Fund 1 | Fees and commission income |  | 1  | 18  |
| &nbsp;&nbsp;&nbsp;&nbsp;EDNCENTRAL Co., Ltd. | Interest income |  | 587  | 615  |
| &nbsp;&nbsp;&nbsp;&nbsp;〃 | Fees and commission income |  | 18  | - |
| &nbsp;&nbsp;&nbsp;&nbsp;〃 | Interest expense |  | (29) | (2) |
| &nbsp;&nbsp;&nbsp;&nbsp;〃 | Provision for credit losses |  | (43) | (74) |
| &nbsp;&nbsp;&nbsp;&nbsp;〃 | Provision for unused commitments |  | (32) | - |
| &nbsp;&nbsp;&nbsp;&nbsp;Kakao-Shinhan 1<sup>st</sup> TNYT Fund | Fees and commission income |  | 265  | 338  |
| &nbsp;&nbsp;&nbsp;&nbsp;Future-Creation Neoplux Venture Capital Fund | Interest income |  | 72  | 76  |
| &nbsp;&nbsp;&nbsp;&nbsp;Gyeonggi-Neoplux Superman Fund | Fees and commission income |  | 315  | 522  |
| &nbsp;&nbsp;&nbsp;&nbsp;Shinhan-Neoplux Energy Newbiz Fund  | Fees and commission income |  | 643  | 706  |
| &nbsp;&nbsp;&nbsp;&nbsp;NewWave 6<sup>th</sup> Fund | Fees and commission income |  | 791  | 877  |
| &nbsp;&nbsp;&nbsp;&nbsp;SHINHAN-NEO Core Industrial Technology Fund | Fees and commission income |  | 288  | 401  |
| &nbsp;&nbsp;&nbsp;&nbsp;Neoplux No.3 Private Equity Fund | Fees and commission income |  | 1707  | - |
| &nbsp;&nbsp;&nbsp;&nbsp;Shinhan Smilegate Global PEF I (\*2) | Fees and commission income |  | - | 238  |
| &nbsp;&nbsp;&nbsp;&nbsp;SHINHAN-NEO Market-Frontier 2<sup>nd</sup> Fund | Fees and commission income |  | 1485  | 1402  |
| &nbsp;&nbsp;&nbsp;&nbsp;SWK-Shinhan New Technology Investment Fund 1<sup>st</sup> | Fees and commission income |  | 61  | 61  |
| &nbsp;&nbsp;&nbsp;&nbsp;Ulmus SHC innovation investment fund | Fees and commission income |  | 67  | 69  |
| &nbsp;&nbsp;&nbsp;&nbsp;iPIXEL Co., Ltd. | Interest expense |  | - | (1) |
| &nbsp;&nbsp;&nbsp;&nbsp;〃 | Reversal of allowance for credit losses |  | 1  | - |
| &nbsp;&nbsp;&nbsp;&nbsp;〃 | Reversal of provision for unused commitments |  | 1  | - |
| &nbsp;&nbsp;&nbsp;&nbsp;CJL No.1 Private Equity Fund (\*2) | Interest expense |  | - | (2) |
| &nbsp;&nbsp;&nbsp;&nbsp;Reverent-Shinhan Vista Fund | Fees and commission income |  | 80  | 80  |
| &nbsp;&nbsp;&nbsp;&nbsp;Kiwoom-Shinhan Innovation Fund 2 | Fees and commission income |  | 96  | 120  |
| &nbsp;&nbsp;&nbsp;&nbsp;ETRI Holdings-Shinhan 1<sup>st</sup> Unicorn Fund | Fees and commission income |  | 78  | 93  |
| &nbsp;&nbsp;&nbsp;&nbsp;Shinhan-Time mezzanine blind Fund (\*2) | Fees and commission income |  | - | 300  |
| &nbsp;&nbsp;&nbsp;&nbsp;Shinhan VC tomorrow venture fund 1 | Fees and commission income |  | 2992  | 2474  |
| &nbsp;&nbsp;&nbsp;&nbsp;JS Shinhan Private Equity Fund | Fees and commission income |  | 600  | 600  |
| &nbsp;&nbsp;&nbsp;&nbsp;Stonebridge-Shinhan Unicorn Secondary Fund | Fees and commission income |  | 14  | 722  |
| &nbsp;&nbsp;&nbsp;&nbsp;Shinhan-Kunicorn first Fund | Fees and commission income |  | 261  | 261  |
| &nbsp;&nbsp;&nbsp;&nbsp;Shinhan-Quantum Startup Fund | Fees and commission income |  | 124  | 153  |
| &nbsp;&nbsp;&nbsp;&nbsp;Shinhan Simone Fund Ⅰ | Fees and commission income |  | 23  | 78  |
| &nbsp;&nbsp;&nbsp;&nbsp;ShinhanFitrin 1st Technology Business Investment Association | Fees and commission income |  | 76  | 82  |
| &nbsp;&nbsp;&nbsp;&nbsp;DDI LVC Master Real Estate Investment Trust Co., Ltd. | Interest expense |  | (1) | (1) |
| &nbsp;&nbsp;&nbsp;&nbsp;Logisvalley Shinhan REIT Co., Ltd. | Interest income |  | 1643  | 1703  |
| &nbsp;&nbsp;&nbsp;&nbsp;〃 | Fees and commission income |  | 150  | 143  |
| &nbsp;&nbsp;&nbsp;&nbsp;〃 | Interest expense |  | (2) | (2) |
| &nbsp;&nbsp;&nbsp;&nbsp;〃 | Reversal of allowance for credit losses |  | 1  | - |
| &nbsp;&nbsp;&nbsp;&nbsp;Shinhan-Dev healthcare Fund I | Fees and commission income |  | 67  | 82  |

---

**50. <u>Related parties (continued)</u>**

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

(b) Transactions with the related parties for the years ended December 31, 2025 and 2024 are as follows (continued):

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Related party** | **Account** |  | **December 31, 2025** | **December 31, 2024** |
| &nbsp;&nbsp;&nbsp;&nbsp;**Investments in associates (continued):** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Shinhan-Cognitive Start-up Fund L.P. | Fees and commission income | W | 120  | 222  |
| &nbsp;&nbsp;&nbsp;&nbsp;Global Commerce Fund | Fees and commission income |  | 22  | 38  |
| &nbsp;&nbsp;&nbsp;&nbsp;Shinhan-HGI Social Enterprise Fund | Fees and commission income |  | 51  | 47  |
| &nbsp;&nbsp;&nbsp;&nbsp;Shinhan-WWG Energy Fund New Technology Venture Investment Fund | Fees and commission income |  | 57  | 45  |
| &nbsp;&nbsp;&nbsp;&nbsp;IGIS-Shinhan New Technology Fund 1 | Fees and commission income |  | 36  | 36  |
| &nbsp;&nbsp;&nbsp;&nbsp;Shinhan-G.N.Tech Smart Innovation Fund | Fees and commission income |  | 260  | 195  |
| &nbsp;&nbsp;&nbsp;&nbsp;SH Global Net Zero Solution Security Investment Trust (\*1) | Fees and commission income |  | - | 17  |
| &nbsp;&nbsp;&nbsp;&nbsp;SH 1.5years Maturity Investment Type Security Investment Trust No.2 (\*1) | Fees and commission income |  | - | 4  |
| &nbsp;&nbsp;&nbsp;&nbsp;Shinhan Global Active REIT Co., Ltd. (\*1), (\*3) | Interest income |  | - | 3982  |
| &nbsp;&nbsp;&nbsp;&nbsp;〃 | Fees and commission income |  | - | 2498  |
| &nbsp;&nbsp;&nbsp;&nbsp;〃 | Derivative-related income |  | - | 8220  |
| &nbsp;&nbsp;&nbsp;&nbsp;〃 | Interest expense |  | - | (4) |
| &nbsp;&nbsp;&nbsp;&nbsp;〃 | Reversal of allowance for credit losses |  | - | 533  |
| &nbsp;&nbsp;&nbsp;&nbsp;DS SHINHAN Content Investment Fund 1 | Fees and commission income |  | 18  | 18  |
| &nbsp;&nbsp;&nbsp;&nbsp;Shinhan Time 1st Investment fund | Fees and commission income |  | 26  | 26  |
| &nbsp;&nbsp;&nbsp;&nbsp;SHINHAN SGC ESG Fund No.1 | Fees and commission income |  | 110  | 115  |
| &nbsp;&nbsp;&nbsp;&nbsp;Shinhan-Sneak Peek Bio&Healthcare Bounce Back Fund | Fees and commission income |  | 124  | 125  |
| &nbsp;&nbsp;&nbsp;&nbsp;Shinhan-isquare Venture PEF 1 | Fees and commission income |  | 100  | 100  |
| &nbsp;&nbsp;&nbsp;&nbsp;Shinhan-Gene and New Normal First Mover Venture Investment Equity Fund 1st | Fees and commission income |  | 207  | 207  |
| &nbsp;&nbsp;&nbsp;&nbsp;DS-Shinhan-JBWoori New Media New Technology Investment Fund No.1 | Fees and commission income |  | 216  | 216  |
| &nbsp;&nbsp;&nbsp;&nbsp;NH-J&-IBKC Label Technology Fund | Interest expense |  | (1) | (6) |
| &nbsp;&nbsp;&nbsp;&nbsp;Bonanza-Shinhan GIB Innovative Semiconductor Investment Fund | Fees and commission income |  | 55  | 55  |
| &nbsp;&nbsp;&nbsp;&nbsp;2023 Shinhan-JB Woori-Daeshin Listed Companies New Technology Fund | Fees and commission income |  | 176  | 214  |
| &nbsp;&nbsp;&nbsp;&nbsp;Shinhan M&A-ESG Investment fund  | Fees and commission income |  | 1072  | 1083  |
| &nbsp;&nbsp;&nbsp;&nbsp;Shinhan-JW Mezzanin New Technology Fund 1<sup>st</sup> (\*1) | Fees and commission income |  | - | 7  |
| &nbsp;&nbsp;&nbsp;&nbsp;MAN Global Strategy Bond(H) | Fees and commission income |  | - | 5  |
| &nbsp;&nbsp;&nbsp;&nbsp;SH US Buyback&High Dividend Security Feeder Investment Trust(H)[Equity] | Fees and commission income |  | 75  | 18  |
| &nbsp;&nbsp;&nbsp;&nbsp;SH Prestige High Dividend Security Feeder No.1[Equity] | Fees and commission income |  | 104  | 24  |
| &nbsp;&nbsp;&nbsp;&nbsp;Shinhan Time Secondary Blind New Technology Investment Trust | Fees and commission income |  | 163  | 200  |
| &nbsp;&nbsp;&nbsp;&nbsp;Shinhan-openwater pre-IPO Investment Trust 1 | Fees and commission income |  | 100  | 100  |
| &nbsp;&nbsp;&nbsp;&nbsp;Shinhan-CJ TechInnovation Fund 1st | Fees and commission income |  | 200  | 200  |
| &nbsp;&nbsp;&nbsp;&nbsp;〃 | Interest expense |  | (72) | (25) |
| &nbsp;&nbsp;&nbsp;&nbsp;Shinhan-Eco Venture Fund 2nd  | Fees and commission income |  | 100  | 100  |
| &nbsp;&nbsp;&nbsp;&nbsp;Heungkuk-Shinhan the1st Visionary Technology Investment Trust no. 1 | Fees and commission income |  | 200  | 200  |
| &nbsp;&nbsp;&nbsp;&nbsp;Hantoo Shinhan Lake K-beauty Technology Investment Trust | Fees and commission income |  | 115  | 237  |
| &nbsp;&nbsp;&nbsp;&nbsp;Shinhan HB Wellness 1st Investment Trust | Fees and commission income |  | 77  | 77  |

---

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**50. <u>Related parties (continued)</u>**

(b) Transactions with the related parties for the years ended December 31, 2025 and 2024 are as follows (continued):

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Related party** | **Account** |  | **December 31, 2025** | **December 31, 2024** |
| &nbsp;&nbsp;&nbsp;&nbsp;Shinhan J&Wave Investment Fund | Fees and commission income | W | 11  | 18  |
| &nbsp;&nbsp;&nbsp;&nbsp;Shinhan General Private Real Estate Investment Trust No.3 | Fees and commission income |  | 210  | 135  |
| &nbsp;&nbsp;&nbsp;&nbsp;Shinhan-Timefolio Bio Accelerator Fund | Fees and commission income |  | - | 310  |
| &nbsp;&nbsp;&nbsp;&nbsp;Shinhan DS Secondary Investment Fund | Fees and commission income |  | 303  | 303  |
| &nbsp;&nbsp;&nbsp;&nbsp;Fortress-shinhan New Tech Fund No.1 | Fees and commission income |  | 6  | 101  |
| &nbsp;&nbsp;&nbsp;&nbsp;Shinhan-Ulmus Sobujang hyeokshin Enterprise Investment Association No.7 | Fees and commission income |  | 94  | 94 |
| &nbsp;&nbsp;&nbsp;&nbsp;Shinhan Mid and Small-Sized Office Value-Added MO REIT Co., Ltd. | Fees and commission income |  | 496  | 208  |
| &nbsp;&nbsp;&nbsp;&nbsp;Shinhan-GB FutureFlow Fund L.P. | Fees and commission income |  | 296  | 279 |
| &nbsp;&nbsp;&nbsp;&nbsp;LB Scotland Amazon Fulfillment Center Fund 29 | Derivative-related income |  | - | 503  |
| &nbsp;&nbsp;&nbsp;&nbsp;〃 | Other expense |  | - | (2) |
| &nbsp;&nbsp;&nbsp;&nbsp;Shinhan AIM FoF Fund 1-A | Derivative-related income |  | - | 3331  |
| &nbsp;&nbsp;&nbsp;&nbsp;〃 | Derivative-related expense |  | - | (232) |
| &nbsp;&nbsp;&nbsp;&nbsp;〃 | Other income |  | - | 22  |
| &nbsp;&nbsp;&nbsp;&nbsp;〃 | Interest expense |  | - | (12) |
| &nbsp;&nbsp;&nbsp;&nbsp;PineStreet Global Corporate FoF XIII-2 | Derivative-related income |  | 365  | 96  |
| &nbsp;&nbsp;&nbsp;&nbsp;〃 | Derivative-related expense |  | (17) | - |
| &nbsp;&nbsp;&nbsp;&nbsp;Shinhan-Regent Fund Ⅰ | Fees and commission income |  | 84  | 23  |
| &nbsp;&nbsp;&nbsp;&nbsp;Shinhan-soo secondary Fund | Fees and commission income |  | 169  | 247  |
| &nbsp;&nbsp;&nbsp;&nbsp;The E&Shinhan New Growth Up Fund | Fees and commission income |  | 160  | 216  |
| &nbsp;&nbsp;&nbsp;&nbsp;CASCADETECH INC | Reversal of allowance for credit losses |  | - | 6  |
| &nbsp;&nbsp;&nbsp;&nbsp;TECHFIN RATINGS Co., Ltd. (\*4) | Fees and commission income |  | 4  | 2  |
| &nbsp;&nbsp;&nbsp;&nbsp;〃 | Interest expense |  | (525) | (726) |
| &nbsp;&nbsp;&nbsp;&nbsp;〃 | Fees and commission expense |  | (1) | - |
| &nbsp;&nbsp;&nbsp;&nbsp;〃 | Reversal of allowance for credit losses |  | 2  | - |
| &nbsp;&nbsp;&nbsp;&nbsp;〃 | Reversal of provision for unused commitments |  | 6  | - |
| &nbsp;&nbsp;&nbsp;&nbsp;Songpa biz cluster PFV Co., Ltd. | Interest income |  | 2810  | 356  |
| &nbsp;&nbsp;&nbsp;&nbsp;〃 | Fees and commission income |  | 1  | 9178  |
| &nbsp;&nbsp;&nbsp;&nbsp;〃 | Interest expense |  | - | (1) |
| &nbsp;&nbsp;&nbsp;&nbsp;〃 | Provision for credit losses |  | (402) | - |
| &nbsp;&nbsp;&nbsp;&nbsp;〃 | Reversal of provision for unused commitments |  | 95  | - |
| &nbsp;&nbsp;&nbsp;&nbsp;STIC ALT Global II Private Equity Fund | Interest expense |  | (1) | (3) |
| &nbsp;&nbsp;&nbsp;&nbsp;Nomura-Rifa Private Real Estate Investment Trust No.31. | Interest income |  | 749  | 746  |
| &nbsp;&nbsp;&nbsp;&nbsp;〃 | Provision for credit losses |  | (27) | (27) |
| &nbsp;&nbsp;&nbsp;&nbsp;Pacific Private Placement Real Estate Fund No.40 | Interest income |  | 589  | 825  |
| &nbsp;&nbsp;&nbsp;&nbsp;〃 | Provision for credit losses |  | (24) | - |
| &nbsp;&nbsp;&nbsp;&nbsp;Shinhan-DS Mezzanine Fund 1 | Fees and commission income |  | 270  | 172  |
| &nbsp;&nbsp;&nbsp;&nbsp;Shinhan-Csquared Mezzanine Fund 1 | Fees and commission income |  | 40  | 20  |

---

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**50. <u>Related parties (continued)</u>**

(b) Transactions with the related parties for the years ended December 31, 2025 and 2024 are as follows (continued):

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Related party** | **Account** |  | **December 31, 2025** | **December 31, 2024** |
| &nbsp;&nbsp;&nbsp;&nbsp;Shinhan Time BM sobujang Fund | Fees and commission income | W | 82  | 110  |
| &nbsp;&nbsp;&nbsp;&nbsp;KR Seocho Co., Ltd | Interest income |  | 1430  | 1287  |
| &nbsp;&nbsp;&nbsp;&nbsp;〃 | Provision for credit losses |  | (15) | - |
| &nbsp;&nbsp;&nbsp;&nbsp;Shinhan Market-Frontier Fund Ⅲ | Fees and commission income |  | 1568  | 1022  |
| &nbsp;&nbsp;&nbsp;&nbsp;SH K-REITs Infra Real Estate Investment Trust (FoFs) | Fees and commission income |  | 63  | 50  |
| &nbsp;&nbsp;&nbsp;&nbsp;KB Distribution Private Real Estate 3-1 | Interest income |  | 83  | 103  |
| &nbsp;&nbsp;&nbsp;&nbsp;〃 | Reversal of (provision for) credit loss allowance  |  | 4  | (4) |
| &nbsp;&nbsp;&nbsp;&nbsp;Capstone REITs No.26 | Interest income |  | 1000  | 589  |
| &nbsp;&nbsp;&nbsp;&nbsp;〃 | Provision for credit losses |  | - | (21) |
| &nbsp;&nbsp;&nbsp;&nbsp;Wave Technology | Fees and commission expense |  | (300) | (300) |
| &nbsp;&nbsp;&nbsp;&nbsp;Credila Financial Services | Interest income |  | 1918  | - |
| &nbsp;&nbsp;&nbsp;&nbsp;〃 | Fees and commission income |  | 9  | - |
| &nbsp;&nbsp;&nbsp;&nbsp;〃 | Provision for credit losses |  | (78) | - |
| &nbsp;&nbsp;&nbsp;&nbsp;〃 | Interest expense |  | (84) | - |
| &nbsp;&nbsp;&nbsp;&nbsp;Shinhan Rio Green Private Equity Fund | Fees and commission income |  | 131  | - |
| &nbsp;&nbsp;&nbsp;&nbsp;〃 | Interest expense |  | (31) | - |
| &nbsp;&nbsp;&nbsp;&nbsp;Startup Korea Vision 2024 Fund | Fees and commission income |  | 801  | - |
| &nbsp;&nbsp;&nbsp;&nbsp;Shinhan-soo Investment Green Wiz Fund | Fees and commission income |  | 412  | - |
| &nbsp;&nbsp;&nbsp;&nbsp;Shinhan-Time Premier Fund | Fees and commission income |  | 120  | - |
| &nbsp;&nbsp;&nbsp;&nbsp;Finflow (\*4) | Other non-operating income |  | 2652  | - |
| &nbsp;&nbsp;&nbsp;&nbsp;D2U 12th Fund | Interest expense |  | (7) | - |
| &nbsp;&nbsp;&nbsp;&nbsp;Fireant Media and Digital Service Joint Stock Company | Interest expense |  | (1) | - |
| &nbsp;&nbsp;&nbsp;&nbsp;〃 | Fees and commission income |  | 4  | - |
| &nbsp;&nbsp;&nbsp;&nbsp;Meta TB ESG Private Equity Fund I | Interest expense |  | (9) | - |
| &nbsp;&nbsp;&nbsp;&nbsp;Reverent-Shinhan Root Fund | Fees and commission income |  | 88  | - |
| &nbsp;&nbsp;&nbsp;&nbsp;SH US Long Term Treasury Plus Security Feeder Investment Trust(H)[Bond-FoFs] | Fees and commission income |  | 11  | - |
| &nbsp;&nbsp;&nbsp;&nbsp;IGIS Yongsan Office General Private Real Estate Investment Trust 518 | Interest income |  | 1205  | - |
| &nbsp;&nbsp;&nbsp;&nbsp;〃 | Provision for credit losses |  | (34) | - |
| **Key management personnel and their immediate relatives** | **Key management personnel and their immediate relatives** | **Key management personnel and their immediate relatives** | **Key management personnel and their immediate relatives** | **Key management personnel and their immediate relatives** |
|  | Interest income |  | 233 | 133  |
|  |  | W | 107012 | 98783 |

---

(\*1) Excluded from associates due to the loss of significant influence through disposal, liquidation, or other means for the year ended December 31, 2024.

(\*2) Excluded from the associates due to disposal and liquidation for the year ended December 31, 2025.

(\*3) The transaction details between the associate and its subsidiary are included during the year ended December 31, 2024.

(\*4) During the year ended December 31, 2025, the Group acquired shares of Finflow through an in-kind contribution, and a disposal gain of W 2,652 million arising from the in-kind contribution is included in other non-operating income.

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**50. <u>Related parties (continued)</u>**

(c) Key management personnel compensation

Key management personnel compensation for the years ended December 31, 2025 and 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  |  | **December 31,** <br>**2025** | **December 31,**<br> **2024** |
| Short-term employee benefits | W | 21,268  | 21,963 |
| Severance benefits |  | 701  | 824 |
| Share-based payment transactions (\*) |  | 24,840  | 12,478 |
|  | W | 46,809  | 35,265 |

---

(\*) The above share-based compensation expenses are costs related to share-based compensation arrangements that are still within the vesting period.

(d) The guarantees and purchase agreement provided between the related parties as of December 31, 2025 and 2024 are as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  |  |  | **Amount of guarantees** | **Amount of guarantees** |  |
| **Guarantor** | **Guaranteed Parties** |  | **December 31, 2025** | **December 31, 2024** | **Account** |
| Shinhan Bank  | &nbsp;&nbsp;&nbsp;&nbsp;SBC PFV Co., Ltd. | W | 1226300  | 65400 | Unused credit commitment |
| 〃 | &nbsp;&nbsp;&nbsp;&nbsp;Key Management Personnel |  | 989  | 2801 | Unused credit commitment |
| Shinhan Life Insurance Co., Ltd. | &nbsp;&nbsp;&nbsp;&nbsp;SBC PFV Co., Ltd. |  | 171700  | - | Unused credit commitment |
| Shinhan Securities Co., Ltd.  | &nbsp;&nbsp;&nbsp;&nbsp;SBC PFV Co., Ltd. |  | 4100  | - | Unused credit commitment |
| 〃 | &nbsp;&nbsp;&nbsp;&nbsp;Songpa biz cluster PFV Co., Ltd. |  | 30000  | - | Unused credit commitment |
| Shinhan Capital | &nbsp;&nbsp;&nbsp;&nbsp;SBC PFV Co., Ltd. |  | 61300  | - | Unused credit commitment |
| Shinhan Card Co., Ltd. | &nbsp;&nbsp;&nbsp;&nbsp;BNP Paribas Cardif Life Insurance |  | 810  | 846 | Unused credit line |
| The Group | &nbsp;&nbsp;&nbsp;&nbsp;Structured entities |  | 131704 | 204035 | Purchase agreement |
| The Group | &nbsp;&nbsp;&nbsp;&nbsp;Structured entities |  | 6286  | 31440 | Derivates agreement |
|  |  | W | 1633189 | 304522 |  |

---

(e) Details of collaterals provided by the related parties as of December 31, 2025 and 2024 are as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  |  |  |  | **Amount of assets pledged** | **Amount of assets pledged** |
| **Provided to** | **Provided by** | **Pledged assets** |  | **December 31,** <br>**2025** | **December 31,**<br> **2024** |
| Shinhan Bank | &nbsp;&nbsp;&nbsp;&nbsp;Logisvalley Shinhan REIT Co., Ltd. | Collateral trust | W | 39600  | 39600 |
| Shinhan Bank | &nbsp;&nbsp;&nbsp;&nbsp;Nomura-Rifa Private Real Estate Investment Trust No.31. | Collateral trust |  | 16632  | 16800 |
| Shinhan Bank | &nbsp;&nbsp;&nbsp;&nbsp;SBC PFV Co., Ltd. | Collateral trust |  | 1440000  | 960000 |
| Shinhan Bank | &nbsp;&nbsp;&nbsp;&nbsp;〃 | Shares |  | 7529  | - |
| Shinhan Bank |  |  |  | 1447529  | 960000 |
| Shinhan Bank | &nbsp;&nbsp;&nbsp;&nbsp;Key Management Personnel | Properties |  | 9103  | 6799 |
| Shinhan Bank | &nbsp;&nbsp;&nbsp;&nbsp;〃 | Deposits, etc. |  | 1783  | 1466 |
| Shinhan Bank | &nbsp;&nbsp;&nbsp;&nbsp;〃 | Guarantee |  | 980  | 2132 |
| Shinhan Bank |  |  |  | 11866  | 10397 |
|  |  |  | W | 1515627  | 1026797 |

---

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**50. <u>Related parties (continued)</u>**

(f) Significant loans and financing transactions with related parties

 *i) Details of significant loan and collection transactions with related parties for the year ended December 31, 2025 and for the year ended December 31, 2024 are as follows:*

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  |  | &nbsp;&nbsp;**December 31, 2025** | &nbsp;&nbsp;**December 31, 2025** | &nbsp;&nbsp;**December 31, 2025** | &nbsp;&nbsp;**December 31, 2025** | &nbsp;&nbsp;**December 31, 2025** |
| &nbsp;&nbsp;**Classification** | &nbsp;&nbsp;**Company** |  | &nbsp;&nbsp;**Beginning** | &nbsp;&nbsp;**Loan** | &nbsp;&nbsp;**Collection** | &nbsp;&nbsp;**Others (\*)** | &nbsp;&nbsp;**Ending** |
| &nbsp;&nbsp;Investments in associates | &nbsp;&nbsp;&nbsp;&nbsp;Nomura-Rifa Private Real Estate Investment Trust 19 | &nbsp;&nbsp;&nbsp;W | &nbsp;&nbsp;11700  | &nbsp;&nbsp;- | &nbsp;&nbsp;(300) | &nbsp;&nbsp;- | &nbsp;&nbsp;11400  |
| &nbsp;&nbsp;Investments in associates | &nbsp;&nbsp;&nbsp;&nbsp;SBC PFV Co., Ltd. |  | &nbsp;&nbsp;984600  | &nbsp;&nbsp;1270300  | &nbsp;&nbsp;(1735100) | &nbsp;&nbsp;- | &nbsp;&nbsp;519800  |
| &nbsp;&nbsp;Investments in associates | &nbsp;&nbsp;&nbsp;&nbsp;Logisvalley Shinhan REIT Co., Ltd. |  | &nbsp;&nbsp;33000  | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;33000  |
| &nbsp;&nbsp;Investments in associates | &nbsp;&nbsp;&nbsp;&nbsp;Nomura-Rifa Private Real Estate Investment Trust No.31. |  | &nbsp;&nbsp;14000  | &nbsp;&nbsp;- | &nbsp;&nbsp;(140) | &nbsp;&nbsp;- | &nbsp;&nbsp;13860  |
| &nbsp;&nbsp;Investments in associates | &nbsp;&nbsp;&nbsp;&nbsp;Pacific Private Placement Real Estate Fund No.40 |  | &nbsp;&nbsp;14000  | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;14000  |
| &nbsp;&nbsp;Investments in associates | &nbsp;&nbsp;&nbsp;&nbsp;KR Seocho Co., Ltd |  | &nbsp;&nbsp;11871  | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;11871  |
| &nbsp;&nbsp;Investments in associates | &nbsp;&nbsp;&nbsp;&nbsp;Songpa biz cluster PFV Co., Ltd. |  | &nbsp;&nbsp;22424  | &nbsp;&nbsp;47848  | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;70272  |
| &nbsp;&nbsp;Investments in associates | &nbsp;&nbsp;&nbsp;&nbsp;KB Distribution Private Real Estate 3-1 |  | &nbsp;&nbsp;2000  | &nbsp;&nbsp;- | &nbsp;&nbsp;(2000) | &nbsp;&nbsp;- | &nbsp;&nbsp;- |
| &nbsp;&nbsp;Investments in associates | &nbsp;&nbsp;&nbsp;&nbsp;Capstone REITs No.26 |  | &nbsp;&nbsp;20000  | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;20000  |
| &nbsp;&nbsp;Investments in associates | &nbsp;&nbsp;&nbsp;&nbsp;EDNCENTRAL Co., Ltd. |  | &nbsp;&nbsp;25400  | &nbsp;&nbsp;7930  | &nbsp;&nbsp;- | &nbsp;&nbsp;(33330) | &nbsp;&nbsp;- |
| &nbsp;&nbsp;Investments in associates | &nbsp;&nbsp;&nbsp;&nbsp;Credila Financial Services |  | &nbsp;&nbsp;- | &nbsp;&nbsp;26567  | &nbsp;&nbsp;(6672) | &nbsp;&nbsp;- | &nbsp;&nbsp;19895  |
| &nbsp;&nbsp;Investments in associates | &nbsp;&nbsp;&nbsp;&nbsp;IGIS Yongsan Office General Private Real Estate Investment Trust 518 |  | &nbsp;&nbsp;20000  | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp; - | &nbsp;&nbsp;20000  |
| &nbsp;&nbsp;Key Management Personnel | &nbsp;&nbsp;Key Management Personnel |  | &nbsp;&nbsp;3403  | &nbsp;&nbsp;3747  | &nbsp;&nbsp;(2591) | &nbsp;&nbsp;- | &nbsp;&nbsp;4559  |
| &nbsp;&nbsp;Total | &nbsp;&nbsp;Total | &nbsp;&nbsp;&nbsp;W | &nbsp;&nbsp;1162398  | &nbsp;&nbsp;1356392  | &nbsp;&nbsp;(1746803) | &nbsp;&nbsp;(33330) | &nbsp;&nbsp;738657  |

---

(\*) Excluded from associates due to the loss of significant influence during the year ended December 31, 2025, and the year-end balance has been reclassified under 'Others'.

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**50. <u>Related parties (continued)</u>**

(f) Significant loans and financing transactions with related parties (continued)

 *i) Details of significant loan and collection transactions with related parties for the year ended December 31, 2025 and for the year ended December 31, 2024 are as follows (continued):*

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  |  | &nbsp;&nbsp;**December 31, 2024** | &nbsp;&nbsp;**December 31, 2024** | &nbsp;&nbsp;**December 31, 2024** | &nbsp;&nbsp;**December 31, 2024** | &nbsp;&nbsp;**December 31, 2024** |
| &nbsp;&nbsp;**Classification** | &nbsp;&nbsp;**Company** |  | &nbsp;&nbsp;**Beginning** | &nbsp;&nbsp;**Loan** | &nbsp;&nbsp;**Collection** | &nbsp;&nbsp;**Others (\*1)** | &nbsp;&nbsp;**Ending** |
| &nbsp;&nbsp;Investments in associates | &nbsp;&nbsp;&nbsp;&nbsp;Nomura-Rifa Private Real Estate Investment Trust 19 | &nbsp;&nbsp;&nbsp;W | &nbsp;&nbsp;11529  | &nbsp;&nbsp;- | &nbsp;&nbsp;(300) | &nbsp;&nbsp;471  | &nbsp;&nbsp;11700 |
| &nbsp;&nbsp;Investments in associates | &nbsp;&nbsp;&nbsp;&nbsp;Shinhan Global Active REIT Co., Ltd. (\*2) |  | &nbsp;&nbsp;- | &nbsp;&nbsp;165400  | &nbsp;&nbsp;(125700) | &nbsp;&nbsp;(39700) | &nbsp;&nbsp;- |
| &nbsp;&nbsp;Investments in associates | &nbsp;&nbsp;&nbsp;&nbsp;SBC PFV Co., Ltd. |  | &nbsp;&nbsp;- | &nbsp;&nbsp;1169700  | &nbsp;&nbsp;(185100) | &nbsp;&nbsp;- | &nbsp;&nbsp;984600 |
| &nbsp;&nbsp;Investments in associates | &nbsp;&nbsp;&nbsp;&nbsp;Goduck Gangil10 PFV Co., Ltd. |  | &nbsp;&nbsp;1100  | &nbsp;&nbsp;- | &nbsp;&nbsp;(1100) | &nbsp;&nbsp;- | &nbsp;&nbsp;- |
| &nbsp;&nbsp;Investments in associates | &nbsp;&nbsp;&nbsp;&nbsp;Logisvalley Shinhan REIT Co., Ltd. |  | &nbsp;&nbsp;33000  | &nbsp;&nbsp;34175  | &nbsp;&nbsp;(34175) | &nbsp;&nbsp;- | &nbsp;&nbsp;33000 |
| &nbsp;&nbsp;Investments in associates | &nbsp;&nbsp;&nbsp;&nbsp;CASCADETECH INC |  | &nbsp;&nbsp;- | &nbsp;&nbsp;66  | &nbsp;&nbsp;(66) | &nbsp;&nbsp;- | &nbsp;&nbsp;- |
| &nbsp;&nbsp;Investments in associates | &nbsp;&nbsp;&nbsp;&nbsp;Nomura-Rifa Private Real Estate Investment Trust No.31. |  | &nbsp;&nbsp;- | &nbsp;&nbsp;28000  | &nbsp;&nbsp;(14000) | &nbsp;&nbsp;- | &nbsp;&nbsp;14000 |
| &nbsp;&nbsp;Investments in associates | &nbsp;&nbsp;&nbsp;&nbsp;Pacific Private Placement Real Estate Fund No.40 |  | &nbsp;&nbsp;- | &nbsp;&nbsp;14000  | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;14000 |
| &nbsp;&nbsp;Investments in associates | &nbsp;&nbsp;&nbsp;&nbsp;KR Seocho Co., Ltd. |  | &nbsp;&nbsp;- | &nbsp;&nbsp;11871  | &nbsp;&nbsp;(7000) | &nbsp;&nbsp;7000  | &nbsp;&nbsp;11871 |
| &nbsp;&nbsp;Investments in associates | &nbsp;&nbsp;&nbsp;&nbsp;Songpa biz cluster PFV Co., Ltd. |  | &nbsp;&nbsp;- | &nbsp;&nbsp;22424  | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;22424 |
| &nbsp;&nbsp;Investments in associates | &nbsp;&nbsp;&nbsp;&nbsp;KB Distribution Private Real Estate 3-1 |  | &nbsp;&nbsp;- | &nbsp;&nbsp;2000  | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;2000 |
| &nbsp;&nbsp;Investments in associates | &nbsp;&nbsp;&nbsp;&nbsp;Capstone REITs No.26 |  | &nbsp;&nbsp;- | &nbsp;&nbsp;20000  | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;20000 |
| &nbsp;&nbsp;Investments in associates | &nbsp;&nbsp;&nbsp;&nbsp;EDNCENTRAL Co., Ltd. |  | &nbsp;&nbsp;- | &nbsp;&nbsp;25400  | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;25400 |
| &nbsp;&nbsp;Investments in associates | &nbsp;&nbsp;&nbsp;&nbsp;IGIS Yongsan Office General Private Real Estate Investment Trust 518 |  | &nbsp;&nbsp;20000 | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;20000 |
| &nbsp;&nbsp;Key Management Personnel | &nbsp;&nbsp;Key Management Personnel |  | &nbsp;&nbsp;5005 | &nbsp;&nbsp;1493  | &nbsp;&nbsp;(3095) | &nbsp;&nbsp;- | &nbsp;&nbsp;3403 |
| &nbsp;&nbsp;Total | &nbsp;&nbsp;Total | &nbsp;&nbsp;&nbsp;W | &nbsp;&nbsp;70634 | &nbsp;&nbsp;1494529  | &nbsp;&nbsp;(370536) | &nbsp;&nbsp;(32229) | &nbsp;&nbsp;1162398 |

---

(\*1) The effect on changes in allowance for credit loss is included.

(\*2) Excluded from associates due to the loss of significant influence during the year ended December 31, 2024, and the year-end balance has been reclassified under 'Others'.

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**50. <u>Related parties (continued)</u>**

(f) Significant loans and financing transactions with related parties (continued)

*ii) Details of significant borrowing and repayment transactions with related parties for the year ended December 31, 2025 and for the year ended December 31, 2024 are as follows:*

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  |  |  | &nbsp;&nbsp;**December 31, 2025** | &nbsp;&nbsp;**December 31, 2025** | &nbsp;&nbsp;**December 31, 2025** | &nbsp;&nbsp;**December 31, 2025** |
| &nbsp;&nbsp;**Liabilities** | &nbsp;&nbsp;**Classification** | &nbsp;&nbsp;**Company** |  | &nbsp;&nbsp;**Beginning** | &nbsp;&nbsp;**Borrowing** | &nbsp;&nbsp;**Repayment** | &nbsp;&nbsp;**Ending** |
| &nbsp;&nbsp;Deposits (\*) | &nbsp;&nbsp;Investments in associates | &nbsp;&nbsp;NH-J&-IBKC Label Technology Fund | &nbsp;&nbsp;&nbsp;W | &nbsp;&nbsp;59  | &nbsp;&nbsp;- | &nbsp;&nbsp;(59) | &nbsp;&nbsp;- |
| &nbsp;&nbsp;Deposits (\*) | &nbsp;&nbsp;Investments in associates | &nbsp;&nbsp;Shinhan Rio Green Private Equity Fund |  | &nbsp;&nbsp;- | &nbsp;&nbsp;4600  | &nbsp;&nbsp;(4600) | &nbsp;&nbsp;- |
| &nbsp;&nbsp;Deposits (\*) | &nbsp;&nbsp;Investments in associates | &nbsp;&nbsp;TECHFIN RATINGS Co., Ltd. |  | &nbsp;&nbsp;18000  | &nbsp;&nbsp;24500  | &nbsp;&nbsp;(29000) | &nbsp;&nbsp;13500  |
| &nbsp;&nbsp;Deposits (\*) | &nbsp;&nbsp;Investments in associates | &nbsp;&nbsp;Shinhan-CJ TechInnovation Fund 1st |  | &nbsp;&nbsp;3100  | &nbsp;&nbsp;14500  | &nbsp;&nbsp;(14100) | &nbsp;&nbsp;3500  |
| &nbsp;&nbsp;Deposits (\*) | &nbsp;&nbsp;Investments in associates | &nbsp;&nbsp;&nbsp;&nbsp;D2U 12th Fund |  | &nbsp;&nbsp;- | &nbsp;&nbsp;900  | &nbsp;&nbsp;(500) | &nbsp;&nbsp;400  |
| &nbsp;&nbsp;Deposits (\*) | &nbsp;&nbsp;Investments in associates | &nbsp;&nbsp;Meta TB ESG Private Equity Fund I |  | &nbsp;&nbsp;- | &nbsp;&nbsp;300  | &nbsp;&nbsp;(300) | &nbsp;&nbsp;- |
| &nbsp;&nbsp;Deposits (\*) | &nbsp;&nbsp;Investments in associates | &nbsp;&nbsp;Korea Credit Bureau |  | &nbsp;&nbsp;- | &nbsp;&nbsp;1000  | &nbsp;&nbsp;- | &nbsp;&nbsp;1000  |
|  | &nbsp;&nbsp;Total | &nbsp;&nbsp;Total | &nbsp;&nbsp;&nbsp;W | &nbsp;&nbsp;21159  | &nbsp;&nbsp;45800  | &nbsp;&nbsp;(48559) | &nbsp;&nbsp;18400 |

---

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  |  |  | &nbsp;&nbsp;**December 31, 2024** | &nbsp;&nbsp;**December 31, 2024** | &nbsp;&nbsp;**December 31, 2024** | &nbsp;&nbsp;**December 31, 2024** |
| &nbsp;&nbsp;**Liabilities** | &nbsp;&nbsp;**Classification** | &nbsp;&nbsp;**Company** |  | &nbsp;&nbsp;**Beginning** | &nbsp;&nbsp;**Borrowing** | &nbsp;&nbsp;**Repayment** | &nbsp;&nbsp;**Ending** |
| &nbsp;&nbsp;Deposits (\*) | &nbsp;&nbsp;Investments in associates | &nbsp;&nbsp;NH-J&-IBKC Label Technology Fund | &nbsp;&nbsp;&nbsp;W | &nbsp;&nbsp;248  | &nbsp;&nbsp;522  | &nbsp;&nbsp;(711) | &nbsp;&nbsp;59  |
| &nbsp;&nbsp;Deposits (\*) | &nbsp;&nbsp;Investments in associates | &nbsp;&nbsp;TECHFIN RATINGS Co., Ltd. |  | &nbsp;&nbsp;- | &nbsp;&nbsp;46000  | &nbsp;&nbsp;(28000) | &nbsp;&nbsp;18000  |
| &nbsp;&nbsp;Deposits (\*) | &nbsp;&nbsp;Investments in associates | &nbsp;&nbsp;CJL No.1 Private Equity Fund |  | &nbsp;&nbsp;265  | &nbsp;&nbsp;282  | &nbsp;&nbsp;(547) | &nbsp;&nbsp;- |
| &nbsp;&nbsp;Deposits (\*) | &nbsp;&nbsp;Investments in associates | &nbsp;&nbsp;Shinhan-CJ TechInnovati-<br>on Fund 1st |  | &nbsp;&nbsp;- | &nbsp;&nbsp;3100  | &nbsp;&nbsp;- | &nbsp;&nbsp;3100  |
|  | &nbsp;&nbsp;Total | &nbsp;&nbsp;Total | &nbsp;&nbsp;&nbsp;W | &nbsp;&nbsp;513 | &nbsp;&nbsp;49904 | &nbsp;&nbsp;(29258) | &nbsp;&nbsp;21159 |

---

(\*) Settlement balances between related parties and payable deposits with frequent movements are excluded.

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**51. <u>Interests in unconsolidated structured entities</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)The nature and extent of interests in unconsolidated structured entities

The Group involved in assets-backed securitization, structured financing, beneficiary certificates (primarily investment funds) and other structured entities and characteristics of these structured entities are as follows:

---

| | |
|:---|:---|
|  | &nbsp;&nbsp;**Description** |
| &nbsp;&nbsp;&nbsp;&nbsp;Assets-backed securitization | &nbsp;&nbsp;Securitization vehicles are established to buy assets from originators and issue asset-backed securities in order to facilitate the originators' funding activities and enhance their financial soundness. The Group is involved in the securitization vehicles by purchasing (or committing to purchase) the asset-backed securities issued and/or providing other forms of credit enhancement. <br>The Group does not consolidate a securitization vehicle if (i) the Group is unable to make or approve decisions as to the modification of the terms and conditions of the securities issued by such vehicle or disposal of such vehicles' assets, (ii) (even if the Group is so able) if the Group does not have the exclusive or primary power to do so, or (iii) if the Group does not have exposure, or right, to a significant amount of variable returns from such entity due to the purchase (or commitment to purchase) of asset-backed securities so issued or subordinated obligations or by providing other forms of credit support. |
| &nbsp;&nbsp;Structured financing | &nbsp;&nbsp;Structured entities for project financing are established to raise funds and invest in a specific project such as M&A (mergers and acquisitions), BTL (build-transfer-lease), shipping finance, etc. The Group is involved in the structured entities by originating loans, investing in equity, or providing credit enhancement. |
| &nbsp;&nbsp;Investment fund | &nbsp;&nbsp;Investment fund means an investment trust, a PEF (private equity fund) or a partnership which invests in a group of assets such as stocks or bonds by issuing a type of beneficiary certificates to raise funds from the general public, and distributes its income and capital gains to their investors. The Group manages assets by investing in shares of investment fund or playing a role of an operator or a GP (general partner) of investment fund, on behalf of other investors. |

---

The size of unconsolidated structured entities as of December 31, 2025 and 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  |  | **December 31, 2025** | **December 31, 2024** |
| Total assets: |  |  |  |
| &nbsp;&nbsp;&nbsp;Asset-backed securitization | W | 180681470  | 193570970  |
| &nbsp;&nbsp;&nbsp;Structured financing |  | 567491062  | 506473200  |
| &nbsp;&nbsp;&nbsp;Investment fund |  | 603354883  | 508704815  |
|  | W | 1351527415  | 1208748985  |

---

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**51. <u>Interests in unconsolidated structured entities (continued)</u>**

(b) Nature of risks

*i) The carrying amounts of the assets and liabilities relating to its interests in unconsolidated structured entities as of December 31, 2025 and 2024 are as follows:*

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  |  | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** |
|  |  | **Assets-backed** <br>**securitization** | **Structured** <br>**financing** | **Investment** <br>**fund** | **Total** |
| Assets under consolidated financial statements: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Loans at FVTPL | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;W | 4622  | 746038  | - | 750660  |
| &nbsp;&nbsp;&nbsp;&nbsp;Loan at amortized cost |  | 2971101  | 19410662  | 150857  | 22532620  |
| &nbsp;&nbsp;&nbsp;&nbsp;Securities at FVTPL |  | 4491692  | 322481  | 16428693  | 21242866  |
| &nbsp;&nbsp;&nbsp;&nbsp;Derivate assets |  | 9286  | - | - | 9286  |
| &nbsp;&nbsp;&nbsp;&nbsp;Securities at FVOCI |  | 3721496  | 138153  | - | 3859649  |
| &nbsp;&nbsp;&nbsp;&nbsp;Securities at amortized cost |  | 4089597  | - | 80  | 4089677  |
| &nbsp;&nbsp;&nbsp;&nbsp;Other assets |  | 12665  | 101058  | 2439  | 116162  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;W | 15300459  | 20718392  | 16582069  | 52600920  |
| Liabilities under consolidated financial statements: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Derivate liabilities | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;W | 2101  | - | - | 2101  |
| &nbsp;&nbsp;&nbsp;&nbsp;Other liabilities |  | 315  | 6481  | - | 6796  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;W | 2416  | 6481  | - | 8897  |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  |  | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
|  |  | **Assets-backed** <br>**securitization** | **Structured** <br>**financing** | **Investment** <br>**fund** | **Total** |
| Assets under consolidated financial statements: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Loans at FVTPL | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;W | 11669  | 600796  | - | 612465  |
| &nbsp;&nbsp;&nbsp;&nbsp;Loan at amortized cost |  | 2326196  | 18660200  | 93296  | 21079692  |
| &nbsp;&nbsp;&nbsp;&nbsp;Securities at FVTPL |  | 4233165  | 255936  | 14902327  | 19391428  |
| &nbsp;&nbsp;&nbsp;&nbsp;Derivate assets |  | 16012  | - | - | 16012  |
| &nbsp;&nbsp;&nbsp;&nbsp;Securities at FVOCI |  | 4124742  | 176273  | - | 4301015  |
| &nbsp;&nbsp;&nbsp;&nbsp;Securities at amortized cost |  | 4879484  | - | 93  | 4879577  |
| &nbsp;&nbsp;&nbsp;&nbsp;Other assets |  | 13700  | 73981  | 28076  | 115757  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;W | 15604968  | 19767186  | 15023792  | 50395946  |
| Liabilities under consolidated financial statements: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Derivate liabilities | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;W | 3130  | 220  | - | 3350  |
| &nbsp;&nbsp;&nbsp;&nbsp;Other liabilities |  | 510  | 4295  | 3  | 4808  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;W | 3640  | 4515  | 3  | 8158  |

---

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**51. <u>Interests in unconsolidated structured entities (continued)</u>**

(b) Nature of risks (continued)

*ii) The maximum risk exposure of the Group relating to its interests in unconsolidated structured entities as of December 31, 2025 and 2024 are as follows:*

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  |  | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** |
|  |  | **Assets-backed** <br>**securitization** | **Structured** <br>**financing** | **Investment** <br>**fund** | **Total** |
| Assets held | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;W | 15300459  | 20718392  | 16582069  | 52600920  |
| &nbsp;&nbsp;&nbsp;&nbsp;ABS and ABCP <br>purchase agreements |  | 1802241  | 277917  | 2203699  | 4283857  |
| Loan commitments |  | 256038  | 1458320  | 67807  | 1782165  |
| Guarantees |  | 31450  | 6000  | - | 37450  |
| Others |  | - | 263836  | - | 263836  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;W | 17390188  | 22724465  | 18853575  | 58968228  |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  |  | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
|  |  | **Assets-backed** <br>**securitization** | **Structured** <br>**financing** | **Investment** <br>**fund** | **Total** |
| Assets held | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;W | 15604968 | 19767186 | 15023792 | 50395946 |
| &nbsp;&nbsp;&nbsp;&nbsp;ABS and ABCP <br>purchase agreements |  | 1125400 | 224184 | 2246239 | 3595823 |
| Loan commitments |  | 327367 | 916236 | 41656 | 1285259 |
| Guarantees |  | 111150 | 8900 | - | 120050 |
| Others |  | - | 383071 | - | 383071 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;W | 17168885 | 21299577 | 17311687 | 55780149 |

---

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**<u>52. Business Combinations</u>**

(a)General Information

On October 20, 2025, the Group acquired 100% of the equity interests in HIEP HIEP THANH INVESTMENT COMPANY LIMITED and obtained control over the entity. The identifiable assets and liabilities of HIEP HIEP THANH INVESTMENT COMPANY LIMITED as of the acquisition date include inputs and processes that have the ability to create outputs. In assessing whether the acquired set constitutes a business, the Group evaluated whether the acquired inputs and substantive processes significantly contribute to the ability to generate outputs, including other income. Based on this assessment, the acquired set meets the definition of a business.

As a result of obtaining control over HIEP HIEP THANH INVESTMENT COMPANY LIMITED, the Group became the substantive owner of The METT Office Building, thereby securing stable rental income in the Ho Chi Minh City real estate market in Vietnam and expecting capital appreciation arising from favorable real estate market conditions. In addition, as major consolidated subsidiaries of the Group occupy The METT Office Building, the Group expects the property to serve as a strategic foothold for its expansion into the Vietnamese market.

For the two-month period subsequent to the acquisition date, the Group recognized revenue of approximately

W 2,796 million and an operating loss of approximately W 1,056 million through HIEP HIEP THANH INVESTMENT COMPANY LIMITED. If the acquisition had occurred on January 1, 2025, the beginning of the annual reporting period, revenue would have been approximately W 11,853 million and operating loss would have been approximately W 17,933 million. These amounts were estimated assuming that the provisional fair value adjustments recognized at the acquisition date had been applied as of January 1, 2025.

---

| | | |
|:---|:---|:---|
| Name of the acquiree |  | HIEP HIEP THANH INVESTMENT COMPANY LIMITED |
| Acquisition date |  | 2025-10-20 |
| Consideration transferred | W | 132519 |
| Fair value of identifiable assets recognized |  | 455413 |
| Fair value of identifiable liabilities recognized |  | 319817 |
| Bargain purchase gain recognized (\*) |  | 3077 |
| Operating revenue since the acquisition date |  | 2796 |

---

(\*) The bargain purchase gain arose as the consideration transferred was determined by taking into consideration the market conditions at the transaction date, including exchange rate fluctuations, the seller's negotiating position, and the urgency to complete the transaction. After reassessing the related fair value measurements to confirm that there were no measurement errors, the Group recognized the amount as a bargain purchase gain.

(b)Consideration transferred

The fair values of the major components of the consideration transferred as of the acquisition date are as follows:

---

| | | |
|:---|:---|:---|
|  |  | **Amount** |
| Cash | W | 132,519 |

---

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**<u>52. Business Combinations (continued)</u>**

(c)Identifiable assets acquired and liabilities assumed

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*i) The amounts of the assets acquired and liabilities assumed as of the acquisition date are as follows:*

---

| | | |
|:---|:---|:---|
|  |  | **Amount** |
| Property and equipment (\*) | W | 188,110 |
| Investment property |  | 207,833 |
| Trade and other receivables |  | 50,955 |
| Cash and cash equivalents |  | 8,515 |
| Deferred tax liabilities |  | 35,183 |
| Trade and other payables |  | 284,634 |
| Identifiable net assets | W | 135,596 |

---

(\*) Investment property of the acquiree amounting to W 188,029 million was classified as property and equipment in the Group's consolidated statement of financial position.

*ii) The valuation techniques used to measure the fair value of significant assets acquired are as follows:*

---

| | |
|:---|:---|
| Assets acquired | Valuation techniques |
| Property and equipment and investment property | Market approach and income approach using the discounted cash flow ("DCF") method:<br>Under the market approach, fair value was determined based on recent transaction cases and market data of comparable properties with similar location, use, and scale as of the acquisition date.<br>Under the income approach, fair value was estimated by projecting future cash flows expected to be generated from the investment property based on reasonable assumptions and discounting them using an appropriate discount rate. |

---

------

SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDIARIES

**Notes to the Consolidated Financial Statements**

December 31, 2025 and 2024

(In millions of won)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**<u>52. Business Combinations (continued)</u>**

(d)Goodwill or Bargain Purchase Gain

Goodwill (or bargain purchase gain) arising from the business combination is as follows:

The bargain purchase gain was recognized as non-operating income.

---

| | | |
|:---|:---|:---|
|  |  | **Amount** |
| Total consideration transferred | W | 132519 |
| Fair value of identifiable net assets acquired |  | 135596  |
| Goodwill (bargain purchase gain) |  | (3077) |

---

(e)Acquisition-related costs

The Group incurred approximately W 171 million of acquisition-related costs in connection with the business combination, including legal and due diligence fees.

(f)Net cash flows from business combinations are as follows:

---

| | | |
|:---|:---|:---|
|  |  | **Amount** |
| Consideration paid in cash | W | 132,519  |
| Less: Cash and cash equivalents held by the subsidiary |  | 8,515  |
| Net cash flows from business combinations |  | 124,004  |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**<u>53. Subsequent events</u>**

<br>To enhance shareholder value, the Company resolved to acquire and retire treasury shares totaling W 500 billion based on a resolution of the Board of Directors on February 5, 2026.

------

**<u>Independent Auditors' Report on Internal Control over Financial Reporting for Consolidation Purposes</u>**

Based on a report originally issued in Korean

The Board of Directors and Stockholders

Shinhan Financial Group Co., Ltd.

*Opinion on Internal Control over Financial Reporting for Consolidation Purposes*

We have audited the internal control over financial reporting ("ICFR") for consolidation purposes of Shinhan Financial Group Co., Ltd. and its subsidiaries ("the Group") as of December 31, 2025 based on the criteria established in the Conceptual Framework for Designing and Operating ICFR ("ICFR Design and Operation Framework") issued by the Operating Committee of Internal Control over Financial Reporting in the Republic of Korea (the "ICFR Committee").

In our opinion, the Group maintained, in all material respects, effective internal control over financial reporting for consolidation purposes as of December 31, 2025, based on ICFR Design and Operation Framework.

We have also audited, in accordance with Korean Standards on Auditing ("KSAs"), the consolidated financial statements of the Group, which comprise the consolidated statement of financial position as of December 31, 2025, the consolidated statements of comprehensive income, changes in equity and cash flows for the year then ended, and notes, comprising a summary of material accounting policies and other explanatory information, and our report dated March 3, 2026 expressed an unmodified opinion on those consolidated financial statements.

*Basis for Opinion on Internal Control over Financial Reporting for Consolidation Purposes*

We conducted our audit in accordance with KSAs. Our responsibilities under those standards are further described in the Auditors' Responsibilities for the Audit of the Internal Control over Financial Reporting for Consolidation Purposes section of our report. We are independent of the Group in accordance with the ethical requirements that are relevant to our audit of the internal control over financial reporting for consolidation purposes in the Republic of Korea, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

*Responsibilities of Management and Those Charged with Governance for the Internal Control over Financial Reporting for Consolidation Purposes*

The Group's management is responsible for designing, operating and maintaining effective internal control over financial reporting for consolidation purposes and for its assessment of the effectiveness of internal control over financial reporting for consolidation purposes, included in the accompanying 'ICFR Operating Status Report for Consolidation Purposes by CEO and IAM.'

Those charged with governance are responsible for overseeing the Group's internal control over financial reporting for consolidation purposes.

------

*Auditors' Responsibilities for the Audit of the Internal Control over Financial Reporting for Consolidation Purposes* 

Our responsibility is to express an opinion on the Group's internal control over financial reporting for consolidation purposes based on our audit. We conducted our audit in accordance with KSAs. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting for consolidation purposes was maintained in all material respects.

Our audit of internal control over financial reporting for consolidation purposes included obtaining an understanding of internal control over financial reporting for consolidation purposes, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk.

*Definition and Limitations of Internal Control over Financial Reporting for Consolidation Purposes*

A company's internal control over financial reporting for consolidation purposes is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of consolidated financial statements for external purposes in accordance with Korean International Financial Reporting Standards ("K-IFRS"). A company's internal control over financial reporting for consolidation purposes includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the Group; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of consolidated financial statements in accordance with K-IFRS, and that receipts and expenditures of the Group are being made only in accordance with authorizations of management and directors of the Group; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the Group's assets that could have a material effect on the consolidated financial statements.

Because of its inherent limitations, internal control over financial reporting for consolidation purposes may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

The engagement partner on the audit resulting in this independent auditors' report is Jung-Soo Bok.

KPMG Samjong Accounting Corp.

Seoul, Korea

March 3, 2026

&nbsp;&nbsp;This report is effective as of March 3, 2026, the audit report date. Certain subsequent events or circumstances, which may occur between the audit report date and the time of reading this report, could have a material impact on the internal control over financial reporting for consolidation purposes. Accordingly, the readers of the audit report should understand that the above audit report has not been updated to reflect the impact of such subsequent events or circumstances, if any.<br>

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![img29632060_0.jpg](img29632060_0.jpg)

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![img29632060_1.jpg](img29632060_1.jpg)

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![img29632060_2.jpg](img29632060_2.jpg)

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![img29632060_3.jpg](img29632060_3.jpg)

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![img29632060_4.jpg](img29632060_4.jpg)

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![img29632060_5.jpg](img29632060_5.jpg)

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![img29632060_6.jpg](img29632060_6.jpg)

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![img29632060_7.jpg](img29632060_7.jpg)

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![img29632060_8.jpg](img29632060_8.jpg)

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## Exhibit 99.2

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**SHINHAN FINANCIAL GROUP CO., LTD.** 

**Separate Financial Statements**

**December 31, 2025 and 2024**

**(With Independent Auditor's Report Thereon)**

------

Contents

---

| | |
|:---|:---|
|  | **Page** |
| **Independent Auditors' Report** | 1 |
| Separate Statements of Financial Position | 4 |
| Separate Statements of Comprehensive Income | 5 |
| Separate Statements of Changes in Equity | 6 |
| Separate Statements of Cash Flows | 8 |
| Notes to the Separate Financial Statements | 10 |
| **Independent Auditors' Report on Internal Control over Financial Reporting** | 74 |
| ICFR Operating Status Report by CEO and IAM | 76 |

---

------

**<u>Independent Auditors' Report</u>**

Based on a report originally issued in Korean

The Board of Directors and Stockholders

Shinhan Financial Group Co., Ltd.

*Opinion*

We have audited the separate financial statements of Shinhan Financial Group Co., Ltd. ("the Company"), which comprise the separate statements of financial position as of December 31, 2025 and 2024, the separate statements of comprehensive income, changes in equity and cash flows for the years then ended, and notes, comprising a summary of material accounting policies and other explanatory information.

In our opinion, the accompanying separate financial statements present fairly, in all material respects, the separate financial position of the Company as of December 31, 2025 and 2024, and its separate financial performance and its cash flows for the years then ended in accordance with Korean International Financial Reporting Standards ("KIFRS").

We have also audited, in accordance with Korean Standards on Auditing ("KSAs"), the Company's Internal Control over Financial Reporting ("ICFR") as of December 31, 2025 based on the criteria established in Conceptual Framework for Designing and Operating Internal Control over Financial Reporting issued by the Operating Committee of Internal Control over Financial Reporting in the Republic of Korea, and our report dated March 3, 2026 expressed an unmodified opinion on the effectiveness of the Company's internal control over financial reporting.

*Basis for Opinion*

We conducted our audits in accordance with KSAs. Our responsibilities under those standards are further described in the Auditors' Responsibilities for the Audit of the Separate Financial Statements section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audits of the separate financial statements in the Republic of Korea, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinions.

*Key Audit Matters*

We have determined that there are no key audit matters to communicate in our report.

*Other Matters*

The procedures and practices utilized in the Republic of Korea to audit such separate financial statements may differ from those generally accepted and applied in other countries.

------

*Responsibilities of Management and Those Charged with Governance for the Separate Financial Statements*

Management is responsible for the preparation and fair presentation of the separate financial statements in accordance with K-IFRS, and for such internal control as management determines is necessary to enable the preparation of separate financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the separate financial statements, management is responsible for assessing the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.

Those charged with governance are responsible for overseeing the Company's financial reporting process.

*Auditors' Responsibilities for the Audit of the Separate Financial Statements*

Our objectives are to obtain reasonable assurance about whether the separate financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors' report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with KSAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these separate financial statements.

As part of an audit in accordance with KSAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

Identify and assess the risks of material misstatement of the separate financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances.

Evaluate the appropriateness of accounting policies used in the preparation of the separate financial statements and the reasonableness of accounting estimates and related disclosures made by management.

Conclude on the appropriateness of management's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors' report to the related disclosures in the separate financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors' report. However, future events or conditions may cause the Company to cease to continue as a going concern.

Evaluate the overall presentation, structure and content of the separate financial statements, including the disclosures, and whether the separate financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

------

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in the internal controls that we identify during our audit.

We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the separate financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditors' report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

The engagement partner on the audit resulting in this independent auditors' report is Jung-Soo Bok.

KPMG Samjong Accounting Corp.

Seoul, Korea

March 3, 2026

&nbsp;&nbsp;This report is effective as of March 3, 2026, the audit report date. Certain subsequent events or circumstances, which may occur between the audit report date and the time of reading this report, could have a material impact on the accompanying separate financial statements and notes thereto. Accordingly, the readers of the audit report should understand that the above audit report has not been updated to reflect the impact of such subsequent events or circumstances, if any.<br>

------

SHINHAN FINANCIAL GROUP CO., LTD.

**Separate Statements of Financial Position**

As of December 31, 2025 and 2024

---

| | | | | |
|:---|:---|:---|:---|:---|
| *(In millions of won)* | **Notes** |  | **2025** | **2024** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Assets** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Cash and due from banks at amortized cost | 4, 6, 8, 33 | W | 2589 | 151143 |
| &nbsp;&nbsp;&nbsp;&nbsp;Financial assets at fair value through profit or loss | 4, 7, 33 |  | 3160174 | 2552750 |
| &nbsp;&nbsp;&nbsp;Loans at amortized cost | 4, 8, 33 |  | 2951878 | 3837298 |
| &nbsp;&nbsp;&nbsp;Property and equipment | 9, 11, 33 |  | 4833 | 6509 |
| &nbsp;&nbsp;&nbsp;Intangible assets | 10 |  | 7114 | 6488 |
| &nbsp;&nbsp;&nbsp;Investments in subsidiaries | 12 |  | 30723705 | 30623651 |
| &nbsp;&nbsp;&nbsp;Net defined benefit assets | 16 |  | 9676 | 5622 |
| &nbsp;&nbsp;&nbsp;Deferred tax assets | 29 |  | 6388 | - |
| &nbsp;&nbsp;&nbsp;Other assets | 4, 8, 13, 33 |  | 927470 | 488842 |
| **Total assets** |  | W | 37793827 | 37672303 |
| **Liabilities** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Borrowings | 4, 14 |  | 9975 | 19914 |
| &nbsp;&nbsp;&nbsp;Debt securities issued | 4, 15, 33 |  | 10457205 | 10731336 |
| &nbsp;&nbsp;&nbsp;Deferred tax liabilities | 29 |  | - | 20518 |
| &nbsp;&nbsp;&nbsp;Other liabilities | 4, 17, 33 |  | 991187 | 552360 |
| **Total liabilities** |  |  | 11458367 | 11324128 |
| **Equity** | 18 |  |  |  |
| &nbsp;&nbsp;&nbsp;Capital stock |  |  | 2969641  | 2969641 |
| &nbsp;&nbsp;&nbsp;Hybrid bonds |  |  | 4749837  | 4600121 |
| &nbsp;&nbsp;&nbsp;Capital surplus |  |  | 11350744  | 11350744 |
| &nbsp;&nbsp;&nbsp;Capital adjustments |  |  | (647347) | (296024) |
| &nbsp;&nbsp;&nbsp;Accumulated other comprehensive loss |  |  | (11363) | (9307) |
| &nbsp;&nbsp;&nbsp;&nbsp;Retained earnings  |  |  | 7923948  | 7733000 |
| **Total equity** |  |  | 26335460 | 26348175 |
| **Total liabilities and equity**  |  | W | 37793827 | 37672303 |

---

*See accompanying notes to the separate financial statements.*

------

SHINHAN FINANCIAL GROUP CO., LTD.

**Separate Statements of Comprehensive Income**

For the years ended December 31, 2025 and 2024

---

| | | | | |
|:---|:---|:---|:---|:---|
| *(In millions of won, except earnings per share data)* | **Notes** |  | **2025** | **2024** |
| Interest income | 28, 33 | W | 89331  | 98770 |
| Interest expense | 33 |  | (335753) | (334798) |
| **Net interest expense** | 20 |  | (246422) | (236028) |
| Fees and commission income | 28, 33 |  | 71038  | 71053 |
| Fees and commission expense | 33 |  | (810) | (617) |
| **Net fees and commission income**  | 21 |  | 70228 | 70436 |
| Dividend income | 22, 28, 33 |  | 2624112 | 2025956 |
| &nbsp;&nbsp;Net gain on financial assets at fair value through profit or loss | 24, 28 |  | 71959  | 89244 |
| &nbsp;&nbsp;Net foreign currency transaction loss | 28 |  | (291) | (2128) |
| &nbsp;&nbsp;Reversal of credit loss allowance | 8, 23, 28, 33 |  | 266  | 215 |
| &nbsp;&nbsp;General and administrative expenses | 25, 33 |  | (155536) | (146832) |
| **Operating income** |  |  | 2364316 | 1800863 |
| **Non-operating expenses** | 27 |  | (3788) | (169111) |
| **Profit before income taxes** |  |  | 2360528 | 1631752 |
| Income tax expense (benefit) | 29 |  | (24929) | 11885 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Profit for the year** |  |  | 2385457  | 1619867 |
|  |  |  | (2056) | (2665) |
| &nbsp;&nbsp;&nbsp;**Other comprehensive loss for the year, net of income tax** | 16, 18 |  | (2056) | (2665) |
| &nbsp;&nbsp;&nbsp;&nbsp;Items that will not be reclassified subsequently to profit or loss: <br>Re-measurements of the defined benefit asset |  |  | (2056) | (2665) |
| &nbsp;&nbsp;&nbsp;**Total comprehensive income for the year** |  | W | 2383401 | 1617202 |
| &nbsp;&nbsp;&nbsp;&nbsp; Basic and diluted earnings per <br>share in Korean won | 30 | W | 4497 | 2850 |

---

*See accompanying notes to the separate financial statements.*

------

SHINHAN FINANCIAL GROUP CO., LTD.

**Separate Statements of Changes in Equity**

For the years ended December 31, 2025 and 2024

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of won)* |  |  |  |  |  |  |  |  |
|  |  | **Capital**<br>**stock** | **Hybrid bonds** | **Capital**<br>**surplus** | **Capital adjust-ments** | **Accumulated other**<br>**comprehensive loss** | **Retained earnings** | **Total**<br>**equity** |
| **Balance at January 1, 2024** | W | 2969641 | 4001731 | 11350744 | (148464) | (6642) | 7932131 | 26099141 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total comprehensive income for the year:** |  |  |  |  |  |  |  |  |
| **Profit for the year** |  | - | - | - | - | - | 1619867 | 1619867 |
| **Other comprehensive income** |  | - | - | - | - | (2665) | - | (2665) |
| &nbsp;&nbsp;&nbsp;&nbsp;Remeasurements of the net defined benefit assets |  | - | - | - | - | (2665) | - | (2665) |
|  |  | - | - | - | - | (2665) | 1619867 | 1617202 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Transactions with owners:** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Dividends |  | - | - | - | - | - | (268697) | (268697) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interim dividends |  | - | - | - | - | - | (820287) | (820287) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Dividend to hybrid bonds |  | - | - | - | - | - | (176945) | (176945) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Redemption of hybrid bonds |  | - | (199476) | - | (524) | - | - | (200000) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Transfer to retained earnings of redemption<br>loss of hybrid bonds |  | - | - | - | 102667  | - | (102667) | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Issuance of hybrid bonds |  | - | 797866 | - | - | - | - | 797866 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Acquisition of treasury stock |  | - | - | - | (700300) | - | - | (700300) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Disposal of treasury stock |  | - | - | - | 297 | - | - | 297 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Retirement of treasury stock |  | - | - | - | 450300 | - | (450402) | (102) |
|  |  | - | 598390 | - | (147560) | - | (1818998) | (1368168) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Balance at December 31, 2024** |  | 2969641  | 4600121  | 11350744  | (296024) | (9307) | 7733000 | 26348175 |

---

------

SHINHAN FINANCIAL GROUP CO., LTD.

**Separate Statements of Changes in Equity (Continued)**

For the years ended December 31, 2025 and 2024

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| *(In millions of won)* |  |  |  |  |  |  |  |  |
|  |  | **Capital**<br>**stock** | **Hybrid bonds** | **Capital**<br>**surplus** | **Capital adjust-ments** | **Accumulated other**<br>**comprehensive loss** | **Retained earnings** | **Total**<br>**equity** |
| **Balance at January 1, 2025** | W | 2969641  | 4600121  | 11350744  | (296024) | (9307) | 7733000  | 26348175  |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total comprehensive income for the year:** |  |  |  |  |  |  |  |  |
| **Profit for the year** |  | - | - | - | - | - | 2385457  | 2385457  |
| **Other comprehensive income** |  | - | - | - | - | (2056) | - | (2056) |
| &nbsp;&nbsp;&nbsp;&nbsp;Remeasurements of the net defined benefit assets |  | - | - | - | - | (2056) | - | (2056) |
|  |  | - | - | - | - | (2056) | 2385457  | 2383401  |
| &nbsp;&nbsp;&nbsp;&nbsp;**Transactions with owners:** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Dividends |  | - | - | - | - | - | (267755) | (267755) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interim dividends |  | - | - | - | - | - | (828228) | (828228) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Dividend to hybrid bonds |  | - | - | - | - | - | (197932) | (197932) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Redemption of hybrid bonds |  | - | (648154) | - | (1846) | - | - | (650000) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Transfer to retained earnings of redemption<br>loss of hybrid bonds |  | - | - | - | 524  | - | (524) | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Issuance of hybrid bonds |  | - | 797870  | - | - | - | - | 797870  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Acquisition of treasury stock |  | - | - | - | (1250001) | - | - | (1250001) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Retirement of treasury stock |  | - | - | - | 900000  | - | (900070) | (70) |
|  |  | - | 149716  | - | (351323) | - | (2194509) | (2396116) |
| **Balance at December 31, 2025** | W | 2969641  | 4749837  | 11350744  | (647347) | (11363) | 7923948  | 26335460  |

---

*See accompanying notes to the separate financial statements.*

------

SHINHAN FINANCIAL GROUP CO., LTD.

**Separate Statements of Cash Flows**

For the years ended December 31, 2025 and 2024

---

| | | | | |
|:---|:---|:---|:---|:---|
| *(In millions of won)* | **Notes** |  | **2025** | **2024** |
| **Cash flows from operating activities** |  |  |  |  |
| Profit for the year |  | W | 2385457 | 1619867 |
| Adjustments for: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest income | 20 |  | (89331) | (98770) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest expense | 20 |  | 335753  | 334798 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Dividend income | 22 |  | (2624112) | (2025956) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income tax expense (benefit) | 29 |  | (24929) | 11885 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net gain on financial instruments at fair value through profit or loss | 24 |  | (29334) | (39427) |
| &nbsp;&nbsp;&nbsp;&nbsp;Reversal of credit loss allowance |  |  | (266) | (215) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Employee benefits |  |  | 12825  | 6364 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization | 25 |  | 4450  | 5137 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net foreign currency translation loss (gain) |  |  | (37848) | 4201 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Non-operating expense |  |  | 2272  | 167731 |
|  |  |  | (2450520) | (1634252) |
| Changes in assets and liabilities: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Financial instruments at fair value through profit or loss |  |  | (564963) | (330111) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other assets |  |  | (886) | 235 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net defined benefit assets |  |  | (8916) | (4625) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other liabilities |  |  | (2699) | (4021) |
|  |  |  | (577464) | (338522) |
| Income tax paid |  |  | (594) | 792 |
| Interest received |  |  | 88220  | 97366 |
| Interest paid |  |  | (328744) | (326008) |
| Dividend received |  |  | 2624048  | 2025368 |
| **Net cash inflow from operating activities** |  |  | 1740403 | 1444611 |
| **Cash flows from investing activities** |  |  |  |  |
| Acquisition of financial instruments at fair value through <br> profit or loss |  |  | (100000) | (150000) |
| &nbsp;&nbsp;&nbsp;&nbsp;Decrease in financial instruments at fair value through <br>profit or loss |  |  | 100000  | - |
| Lending of loans at amortized cost |  |  | (1575697) | (179304) |
| Collection of loans at amortized cost |  |  | 2480890  | 615000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Acquisition of property and equipment |  |  | (292) | (2162) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Disposal of property and equipment |  |  | - | (10) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Acquisition of intangible assets |  |  | (1806) | (1840) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Disposal of intangible assets |  |  | - | 2387 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Increase in other assets |  |  | (8225) | (620) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Decrease in other assets |  |  | - | 71 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Acquisition of investment in subsidiary  |  |  | (100054) | (100000) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Disposal of investments in subsidiaries  |  |  | - | 32804 |
| **Net cash inflow from investing activities** |  | W | 794816 | 216326 |

---

------

SHINHAN FINANCIAL GROUP CO., LTD.

**Separate Statements of Cash Flows (Continued)**

For the years ended December 31, 2025 and 2024

------

SHINHAN FINANCIAL GROUP CO., LTD.

**Separate Statements of Cash Flows (Continued)**

For the years ended December 31, 2025 and 2024

---

| | | | | |
|:---|:---|:---|:---|:---|
| *(In millions of won)* | **Notes** |  | **2025** | **2024** |
| **Cash flows from financing activities** |  |  |  |  |
| Issuance of hybrid bonds |  |  | 797870  | 797867 |
| Redemption of hybrid bonds |  |  | (650000) | (200000) |
| Issuance of debt securities |  |  | 2738224  | 1836934 |
| Redemption of debt securities |  |  | (3015000) | (1770000) |
| Increase in borrowings |  |  | 109700  | 29316 |
| Decrease in borrowings |  |  | (120000) | (235000) |
| Dividends paid |  |  | (1293828) | (1267146) |
| Acquisition of treasury stock |  |  | (1250001) | (700300) |
| Disposal of treasury stock |  |  | - | 297 |
| Expense for retirement of treasury stock |  |  | (69) | (102) |
| Repayments of lease liabilities |  |  | (731) | (1619) |
| **Net cash outflow from financing activities** |  |  | (2683835) | (1509753) |
| **Net increase (decrease) in cash and cash equivalents** |  |  | (148616) | 151184 |
| **Cash and cash equivalents at the beginning of year** | 32 |  | 151203 | 19 |
| **Cash and cash equivalents at the end of year** | 32 | W | 2587 | 151203  |

---

*See accompanying notes to the separate financial statements.* 

------

SHINHAN FINANCIAL GROUP CO., LTD.

**Notes to the Separate Financial Statements**

December 31, 2025 and 2024

**<u>1. Reporting entity</u>**

Shinhan Financial Group Co., Ltd. (hereinafter referred to as "the Company") was established on September 1, 2001 for the main business purposes such as control and management of companies operating in the financial industry, and financial support for subsidiaries. In addition, the stocks were listed on the Korea Exchange on September 10, 2001, and the Company was registered with the Securities and Exchange Commission (SEC) on September 16, 2003, and on the same date, ADS (American Depositary Shares) was listed on the New York Stock Exchange (NYSE).

**<u>2. Basis of preparation</u>**

**(a) Statement of compliance**

The Company maintains its accounting records in Korean won and prepares statutory financial statements in the Korean language (Hangul) in accordance with International Financial Reporting Standards as adopted by the Republic of Korea (K-IFRS) The accompanying separate financial statements have been restructured and translated into English from the Korean language financial statements.

Certain information attached to the Korean language financial statements, but not required for a fair presentation of the Company's financial position, financial performance or cash flows, is not presented in the accompanying separate financial statements.

These financial statements are separate financial statements prepared in accordance with K-IFRS No. 1027 *'Separate Financial Statements'* in which presented on the basis of direct equity investments, not on that the controlling company, equity interests in associates and joint ventures does not base the investment on the investee's reported performance and net assets.

**(b) Basis of measurement**

The separate financial statements have been prepared on the historical cost basis except for the following major items in the separate statement of financial position.

Financial instruments at fair value through profit or loss are measured at fair value

Liabilities for cash-settled share-based payment arrangements are measured at fair value

Liabilities for defined benefit plans are measured as the present value of defined benefit obligations less the fair value of plan assets

**(c) Functional and presentation currency**

These separate financial statements are presented in Korean won which is the Company's functional currency and the currency of the primary economic environment in which the Company operates.

------

SHINHAN FINANCIAL GROUP CO., LTD.

**Notes to the Separate Financial Statements**

December 31, 2025 and 2024

**<u>2. Basis of preparation (continued)</u>**

**(d) Use of estimates and judgments**

The preparation of the separate financial statements in conformity with K-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 judgment as of the end of the annual reporting period differ from the actual circumstances, the related actual results may differ from these estimates.

Estimates and underlying assumptions about estimates 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.

**(e) Changes in accounting policy**

Except for the following new standard, which has been applied from January 1, 2025, the accounting policies applied by the Company in these separate financial statements are the same as those applied by the Company in its separate financial statements as of and for the year ended December 31, 2024.

*i) Amendments to K-IFRS No. 1021 'Effects of Changes in Foreign Exchange Rates' and No. 1101 'First-time adoption of K-IFRS' – Lack of Exchangeability* 

These amendments define scenarios where exchanges with other currencies are considered possible for accounting purposes, clarify the assessment of exchangeability with other currencies, and specify requirements for estimating and disclosing the spot exchange rate in cases where no exchangeability exists.

If exchange with other currencies is not possible, the spot exchange rate must be estimated on the measurement date using observable exchange rates without adjustment or employing alternative estimation techniques. There is no significant impact on the separate financial statements from these amendments.

*ii) Amendments to K-IFRS No. 1117 'Insurance Contracts' - Disclosure requirements related to lapse rates for insurance products with no or low surrender value*

A paragraph has been added to require disclosure of any differences and their effects on the financial statements when the estimation techniques used for input variables in measuring insurance contracts differ from the principles for estimation required under insurance-related laws and regulations, provided that such information is considered relevant and material to users of the financial statements. These amendments are effective from December 31, 2025, and are applicable to the first annual reporting period ending after the effective date. The amendments will remain in effect until the annual reporting period ending December 31, 2029. There is no significant impact on the separate financial statements from these amendments.

**(f) Approval of separate financial statements**

These separate financial statements were approved by the Board of Directors on February 5, 2026, which will be submitted for approval to shareholders' meeting on March 26, 2026.

------

SHINHAN FINANCIAL GROUP CO., LTD.

**Notes to the Separate Financial Statements**

December 31, 2025 and 2024

**<u>3. Material accounting policies</u>**

The material accounting policies applied by the Company in preparation of its separate financial statements are included below. The Company applies the same accounting policies applied as when preparing the annual separate financial statements for the years ended December 31, 2025 and 2024, except for the following amendments that have been applied for the first time since January 1, 2025 and as described in Note 2.

**(a) Investments in subsidiaries**

The accompanying separate financial statements have been prepared on a stand-alone basis in accordance with K-IFRS No. 1027 *Separate Financial Statements*. The Company's investments in subsidiaries are recorded at cost less impairment, if any, in accordance with K-IFRS No. 1027. The Company applied K-IFRS No. 1101 *First-time Adoption of K-IFRS*, and considered the amount reported previously in separate financial statements prepared in accordance with previous K-GAAP as deemed cost at the date of transition. Dividends received from its subsidiaries are recognized in profit or loss when the Company is entitled to receive the dividend.

**(b) Cash and cash equivalents**

Cash and cash equivalents comprise cash on hand, demand deposits, and short-term, highly liquid investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value and are used by the Company in management of its short-term commitments with maturities of three months or less from the date of acquisition.

**(c) Non-derivative financial assets**

Financial assets are recognized in the separate statement of financial position when the Company becomes a party to the contract. In addition, a standardized purchase or sale (a purchase or sale of a financial asset under a contract whose terms require delivery of the asset within the time frame established generally by regulation or convention in the market concerned) is recognized on the trade date.

*i) Financial assets designated at FVTPL*

Financial assets can be irrevocably designated as measured at FVTPL despite classification standards stated below, if doing so eliminates or significantly reduces an accounting mismatch that would otherwise arise from measuring assets or liabilities or recognizing the gains or losses on them on different bases. However, once the financial assets are designated at FVTPL, it is irrevocable.

*ii) Equity instruments*

For the equity instruments that are not held for short-term trading, at initial recognition, the Company may make an irrevocable election to present subsequent changes in fair value in other comprehensive income. Equity instruments that are not classified as financial assets at Fair Value through Other Comprehensive Income ("FVOCI") are classified as financial assets at FVTPL.

The Company subsequently measures all equity investments at fair value. Valuation gains or losses of the equity instruments that are classified as financial assets at FVOCI previously recognized as other comprehensive income is not reclassified as profit or loss on derecognition. The Company recognizes dividends in profit or loss when the Company's right to receive payments of the dividend is established.

Valuation gains or losses due to changes in fair value of the financial assets at FVTPL are recognized as gains or losses on financial assets at FVTPL. Impairment loss (reversal) on equity instruments at FVOCI is not recognized separately.

------

SHINHAN FINANCIAL GROUP CO., LTD.

**Notes to the Separate Financial Statements**

December 31, 2025 and 2024

**<u>3. Material accounting policies (continued)</u>**

**(c) Non-derivative financial assets (continued)**

*iii) Debt instruments*

Subsequent measurement of debt instruments depends on the Company's business model in which the asset is managed and the contractual cash flow characteristics of the asset. Debt instruments are classified as financial assets at amortized cost, at FVOCI, or at FVTPL. Debt instruments are reclassified only when the Company's business model changes.

*iii-1) Financial assets at amortized cost*

Assets that are held within a business model whose objective is to hold assets to collect contractual cash flows where those cash flows represent solely payments of principal and interest are measured at amortized cost. Impairment losses, and gains or losses on derecognition of the financial assets at amortized cost are recognized in profit or loss. Interest income on the effective interest method is included in the 'Interest income' in the separate statement of comprehensive income.

*iii-2) Financial asset at FVOCI*

Assets that are held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets, where the assets' cash flows represent solely payments of principal and interest, are measured at FVOCI. Other than impairment losses, interest income amortized using effective interest method and foreign exchange differences, gains or losses of the financial assets at FVOCI are recognized as other comprehensive income in equity. On removal, gains or losses accumulated in other comprehensive income are reclassified to profit or loss. The interest income on the effective interest method is included in the 'Interest income' in the separate statement of comprehensive income. Foreign exchange differences and impairment losses are included in the 'Net foreign currency transaction gain' and 'Provision for credit losses allowance' in the separate statement of comprehensive income, respectively.

*iii-3) Financial asset at FVTPL*

Debt securities other than financial assets at amortized costs or FVOCI are classified at FVTPL. Unless hedge accounting is applied, gains or losses from financial assets at FVTPL are recognized as profit or loss and are included in 'Net gain on financial instruments at fair value through profit or loss' in the separate statement of comprehensive income.

*iv) Embedded derivatives*

Financial assets with embedded derivatives are classified regarding the entire hybrid contract, and the embedded derivatives are not separately recognized. The entire hybrid contract is considered when it is determined whether the contractual cash flows represent solely payments of principal and interest.

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SHINHAN FINANCIAL GROUP CO., LTD.

**Notes to the Separate Financial Statements**

December 31, 2025 and 2024

**<u>3. Material accounting policies (continued)</u>**

**(d) Expected credit losses of financial assets**

The Company recognizes provision for credit loss allowance for debt instruments measured at amortized cost and fair value through other comprehensive income, using the expected credit loss impairment model.

Financial assets migrate through the following three stages based on the change in credit risk since initial recognition and loss allowances for the financial assets are measured at the 12-month expected credit losses ("ECL") or the lifetime ECL, depending on the stage.

---

| | | |
|:---|:---|:---|
| **Category** | **Category** | **Provision for credit loss allowance** |
| &nbsp;&nbsp;&nbsp;&nbsp;STAGE 1 | When credit risk has not increased<br> significantly since the initial<br> recognition | &nbsp;&nbsp;12-month ECL: the ECL associated with the probability of default events occurring within the next 12 months<br>|
| &nbsp;&nbsp;&nbsp;&nbsp;STAGE 2 | When credit risk has increased<br> significantly since the initial<br> recognition | &nbsp;&nbsp;Lifetime ECL: a lifetime ECL associated with the probability of default events occurring over the remaining lifetime |
| &nbsp;&nbsp;&nbsp;&nbsp;STAGE 3 | When assets are impaired | Same as above |

---

The Company, meanwhile, only recognizes the cumulative changes in lifetime expected credit losses since the initial recognition as a loss allowance for purchased or originated credit-impaired financial assets.

The total period refers to the expected life of the financial instrument up to the contractual maturity date.

*i) Reflection of forward-looking information*

The Company incorporates forward-looking information when assessing whether credit risk has increased significantly and when measuring expected credit losses.

Assuming that the measurement factor of expected credit losses has a certain correlation with economic fluctuations, the expected credit losses are calculated by reflecting forward-looking information through modeling between macroeconomic variables and measurement factors.

*ii) Measurement of amortization cost regarding the expected credit loss of financial assets*

The expected credit loss of amortized financial assets is measured as the difference between the present value of the cash flows expected to be received and the cash flow to be received in accordance with loan agreements. For this purpose, the Company calculates expected cash flows for individually significant financial assets.

For financial assets that are not individually significant, the Company collectively measures the expected credit losses thereof with similar credit risk characteristics.

Expected credit losses are deducted from financial assets at amortized cost using ACL, which are written off along with the assets if the assets are not recoverable. The allowance for credit loss is increased when the written-off loan receivables are subsequently collected, and the changes in the allowance for credit loss are recognized in profit or loss.

*iii) Measurement of expected credit loss of financial assets at FVOCI*

The calculation of expected credit loss of financial assets at FVOCI is the same as for financial assets measured at amortized cost, but changes in allowance for credit loss are recognized in other comprehensive income. In the case of disposal and redemption of financial assets at FVOCI, the allowance for credit loss is reclassified from other comprehensive income to profit or loss and recognized in profit or loss.

------

SHINHAN FINANCIAL GROUP CO., LTD.

**Notes to the Separate Financial Statements**

December 31, 2025 and 2024

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SHINHAN FINANCIAL GROUP CO., LTD.

**Notes to the Separate Financial Statements**

December 31, 2025 and 2024

**<u>3. Material accounting policies (continued)</u>**

**(e) Property and equipment**

Depreciation is recognized in profit or loss on a straight-line basis over the estimated useful lives of 5 years, since this most closely reflects the expected pattern of consumption of the future economic benefits embodied in the asset.

**(f) Intangible assets**

Intangible assets are measured initially at cost and, subsequently, are carried at cost less accumulated amortization and accumulated impairment losses, if any.

Amortization of intangible assets is calculated on a straight-line basis over the estimated useful lives of 5 years from the date that they are available for use. The residual value of intangible assets is zero. However, if there are no foreseeable limits to the periods over which certain intangible assets are expected to be available for use, they are determined to have indefinite useful lives and are not amortized.

**(g) Impairment of non-financial assets**

The carrying amounts of the Company's non-financial assets, other than assets arising from employee benefits and deferred tax assets, are reviewed at the end of the reporting period to determine whether there is any indication of impairment. If any such indication exists, then the asset's recoverable amount is estimated. Intangible assets that have indefinite useful lives or that are not yet available for use, irrespective of whether there is any indication of impairment, are tested for impairment annually by comparing their recoverable amount to their carrying amount.

The Company estimates the recoverable amount of an individual asset, if it is impossible to measure the individual recoverable amount of an asset, then the Company estimates the recoverable amount of cash-generating unit ("CGU"). A CGU is the smallest identifiable group of assets that generates cash inflows that are largely independent of the cash inflows from other assets or groups of assets. The recoverable amount of an asset or CGU is the greater of its value in use and its fair value less costs to sell. The value in use is estimated by applying a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset or CGU for which estimated future cash flows have not been adjusted, to the estimated future cash flows expected to be generated by the asset or CGU.

An impairment loss is recognized if the carrying amount of an asset or a CGU exceeds its recoverable amount. Impairment losses are recognized in profit or loss.

------

SHINHAN FINANCIAL GROUP CO., LTD.

**Notes to the Separate Financial Statements**

December 31, 2025 and 2024

**<u>3. Material accounting policies (continued)</u>**

**(h) Non-derivative financial liabilities** 

The Company recognizes financial liabilities in the separate statement of financial position when the Company becomes a party to the contractual provisions of the financial liability in accordance with the substance of the contractual arrangement and the definitions of financial liabilities. Transaction costs on the financial liabilities at FVTPL are recognized in profit or loss as incurred.

*i) Financial liabilities designated at FVTPL* 

Financial liabilities can be irrevocably designated as measured at FVTPL if doing so eliminates or significantly reduces an accounting mismatch that would otherwise arise from measuring assets or liabilities or recognizing the gains and losses on them on different bases, or a group of financial instruments is managed and its performance is evaluated on a fair value basis, in accordance with a documented risk management or investment strategy. The amount of change in the fair value of the financial liabilities designated at FVTPL that is attributable to changes in the credit risk of that liabilities shall be presented in other comprehensive income.

*ii) Financial liabilities at FVTPL* 

Since initial recognition, financial liabilities at FVTPL are measured at fair value, and changes in the fair value are recognized as profit or loss.

*iii) Other financial liabilities* 

Non-derivative financial liabilities other than financial liabilities at fair value through profit or loss are classified as other financial liabilities. At the date of initial recognition, other financial liabilities are measured at fair value minus transaction costs that are directly attributable to the acquisition. Subsequent to initial recognition, other financial liabilities are at amortized cost using the effective interest method.

The Company derecognizes a financial liability from the separate statement of financial position when it is extinguished (i.e. when the obligation specified in the contract is discharged, cancelled or expires).

**(i) Paid-in capital**

*i) Hybrid bond*

The Company classifies issued financial instrument, or its component parts, as a financial liability or an equity instrument depending on the substance of the contractual arrangement of such financial instrument. Hybrid bond where the Company has an unconditional right to avoid delivering cash or another financial asset to settle a contractual obligation are classified as an equity instrument and presented in equity.

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SHINHAN FINANCIAL GROUP CO., LTD.

**Notes to the Separate Financial Statements**

December 31, 2025 and 2024

**<u>3. Material accounting policies (continued)</u>**

**(j) Employee benefits** 

*i) Short-term employee benefits*

Short-term employee benefits are employee benefits that are due to be settled within 12 months after the end of the period in which the employees render the related service. When an employee has rendered service to the Company during an accounting period, the Company recognizes the undiscounted amount of short-term employee benefits expected to be paid in exchange for that service.

*ii) Other long-term employee benefits*

The Company's net obligation in respect of long-term employee benefits other than pension plans is the amount of future benefit that employees have earned in return for their service in the current and prior periods; that benefit is discounted to determine its present value, and the fair value of any related assets is deducted. The discount rate is the yield at the reporting date on AA credit-rated bonds that have maturity dates approximating the terms of the Company's obligations. The calculation is performed using the projected unit credit method. Any actuarial gains and losses are recognized in profit or loss in the period in which they arise.

*iii) Retirement benefits: defined benefit plans*

For the year ended December 31, 2024, defined benefit liabilities related to the defined benefit plan are recognized by deducting the fair value of external reserve from the present value of the defined benefit plan debt.

Defined benefit liabilities are calculated annually by independent actuaries using the predicted unit credit method. If the net present value of the defined benefit obligation less the fair value of the plan assets is an asset then the present value of the economic benefits available to the entity in the form of a refund from the plan or a reduction in future contributions to the plan.

**(k) Provisions** 

A provision is recognized if, as a result of a past event, the Company has a present legal or constructive obligation that can be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the obligation.

The risks and uncertainties that inevitably surround many events and circumstances are taken into account in reaching the best estimate of a provision. Where the effect of the time value of money is material, provisions are determined at the present value of the expected future cash flows.

Provisions are reviewed at the end of each reporting period and adjusted to reflect the current best estimate. If it is no longer probable that an outflow of resources embodying economic benefits will be required to settle the obligation, the provision is reversed.

Provision shall be used only for expenditures for which the provision is originally recognized.

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SHINHAN FINANCIAL GROUP CO., LTD.

**Notes to the Separate Financial Statements**

December 31, 2025 and 2024

**<u>3. Material accounting policies (continued)</u>**

**(l) Recognition of revenues and expenses**

The Company recognizes revenue by applying the following five-step revenue recognition model:

① Identify the contract → ② Identify performance obligations → ③ Determine the transaction price → ④ Allocate the transaction price to the performance obligations → ⑤ Recognize revenue once performance obligations are satisfied

*i) Interest income and expenses*

Interest income and expense are recognized in profit or loss using the effective interest method.

*ii) Fees and commissions*

The recognition of revenue for financial service fees depends on the purposes for which the fees are assessed and the basis of accounting for any associated financial instrument.

*ii-1) Fees that are an integral part of the effective interest rate of a financial instrument* 

Such fees are generally treated as an adjustment to the effective interest rate. Such fees may include compensation for activities such as evaluating the borrower's financial condition, evaluating and recording guarantees, collateral and other security arrangements, preparing and processing documents, closing the transaction and the origination fees received on issuing financial liabilities. However, when the financial instrument is measured at fair value with the change in fair value recognized in profit or loss, the fees are recognized as revenue when the instrument is initially recognized.

*ii-2) Fees earned as services are provided* 

Fees and commission income, including investment management fees, sales commission, and account servicing fees, are recognized as the related services are provided.

*ii-3) Fees that are earned on the execution of a significant act* 

The fees that are earned on the execution of a significant act including commission on the allotment of shares or other securities to a client, placement fee for arranging a loan between a borrower and an investor and sales commission, are recognized as revenue when the significant act has been completed.

*iii) Dividend income*

Dividend income is recognized when the shareholder's right to receive payment is established.

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SHINHAN FINANCIAL GROUP CO., LTD.

**Notes to the Separate Financial Statements**

December 31, 2025 and 2024

**<u>3. Material accounting policies (continued)</u>**

**(m) Income tax**

Income tax expense comprises current and deferred tax. Current tax and deferred tax are recognized in profit or loss except to the extent that it relates to a business combination, or items recognized directly in equity or in other comprehensive income.

The Company applies the consolidated tax payment system, under which the Company, as the parent corporation, and its domestic subsidiaries subject to the parent's consolidated control (hereinafter referred to as the "Consolidated Subsidiaries") are treated as a single taxable unit for purposes of calculating a single tax base and tax liability.

The Company evaluates the probability of realizing temporary differences by considering the future taxable profit of each entity and the consolidated group and recognizes changes in deferred tax assets (liabilities), except those recognized directly in equity, in profit or loss as income tax expense. In addition, given the Company, as the consolidated parent corporation, files a corporate tax return and pays corporate tax, it recognizes total consolidated income taxes payables and income tax allocated to each subsidiary as liabilities and receivables from subsidiaries, respectively, within its stand-alone financial statements.

The carrying value of deferred tax assets is reviewed at the end of each reporting period. The carrying value of deferred tax assets is reduced when it is no longer likely that sufficient taxable income will be generated to use benefits from deferred tax assets.

Because of the tax polices taken by the Company, tax uncertainties arise from the complexity of transactions and differences in tax law analysis. Also, it arises from a tax refund suit, tax investigation, or a refund suit against the tax authorities' tax amount. The Company paid the tax amount by the tax authorities in accordance with K-IFRS No. 2123. However, it will be recognized as the corporate tax assets if there is a high possibility of a refund in the future. In addition, the amount expected to be paid as a result of the tax investigation is recognized as the tax liability.

The company is subject to the Global Minimum Corporate Tax Act and has applied the temporary exception for deferred taxes under K-IFRS No. 1012. Accordingly, the company does not recognize deferred tax assets and liabilities related to the Global Minimum Corporate Tax Act and does not disclose information related to deferred tax. However, the company separately discloses details of the current income tax expense (income) related to the Global Minimum Corporate Tax Act.

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SHINHAN FINANCIAL GROUP CO., LTD.

**Notes to the Separate Financial Statements**

December 31, 2025 and 2024

**<u>3. Material accounting policies (continued)</u>**

**(n) New standards and amendments not yet adopted by the Company**

The following new accounting standards and amendments have been published that are not mandatory for annual periods beginning on or after January 1, 2025, and have not been early adopted by the Company.

*i) Amendments to K-IFRS No. 1109 'Financial Instruments' and K-IFRS No. 1107 'Financial Instruments: Disclosures' – Classification and measurement requirements of financial instruments*

*i -1) Derecognition of financial liabilities settled through electronic transfers* 

<br>The amendments permit an entity, subject to specified criteria, to consider a financial liability (or a portion thereof) that is settled through an electronic payment system as extinguished (and derecognized) prior to the settlement date. When this accounting policy is elected, it must be applied consistently to all settlements made through the same electronic payment system.

*i -2) Classification of financial assets*

- Contractual terms and conditions consistent with a basic lending arrangement

The amendments provide guidance on how to assess whether the contractual cash flows of a financial asset are consistent with a basic lending arrangement. This guidance is intended to support entities in applying the contractual cash flow characteristics assessment to financial assets with features linked to environmental, social and governance (ESG) factors.

- Non-recourse financial assets

The amendments enhance the explanation of the term 'non-recourse', clarifying in particular that a financial asset has non-recourse characteristics when the entity's ultimate contractual right to receive cash flows is limited to the cash flows generated from specified assets.

- Contractually linked instruments

The amendments clarify the characteristics that distinguish contractually linked instruments from other transactions. Specifically, they emphasize that, in such instruments, the priority of payments to holders of multiple contractually linked instruments (tranches) is established through a waterfall payment structure, resulting in the concentration of credit risk and the uneven allocation of losses among holders of different tranches. In addition, the amendments explain that not all transactions involving multiple debt instruments meet the criteria for contractually linked instruments and clarify that the pool of underlying assets may include financial assets that are outside the scope of the classification requirements of this standard.

*i -3) Disclosures* 

- Investments in equity instruments designated at fair value through other comprehensive income (FVOCI)

The requirements of K-IFRS No. 1107 have been amended to require entities to separately present fair value gains or losses related to investments derecognized during the reporting period and those related to investments held at the end of the reporting period, as well as to disclose fair value gains or losses recognized in other comprehensive income during the reporting period.

- Contractual terms that may change the timing or amount of contractual cash flows

The amendments require disclosure of contractual terms that may change the timing or amount of contractual cash flows as a result of the occurrence (or non-occurrence) of contingent features that are not directly related to changes in basic lending risks or costs. These disclosure requirements apply to each class of financial assets at amortized cost or at fair value through other comprehensive income, and to each class of financial liabilities measured at amortized cost.

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SHINHAN FINANCIAL GROUP CO., LTD.

**Notes to the Separate Financial Statements**

December 31, 2025 and 2024

**<u>3. Material accounting policies (continued)</u>**

**(n) New standards and amendments not yet adopted by the Company (continued)**

The amendments are effective for annual reporting periods beginning on or after 1 January 2026 with earlier application permitted. The Company expects that there will be no material impact on the separate financial statements from these amendments.

*ii) K-IFRS No. 1118 'Presentation and Disclosure in Financial Statements'*

K-IFRS No. 1118 supersedes K-IFRS No. 1001 . While K-IFRS No. 1118 carries forward many of the requirements of K-IFRS No. 1001 without change, it also introduces new requirements. Certain paragraphs of K-IFRS No. 1001 have been relocated to K-IFRS No. 1008 and K-IFRS No. 1107, and K-IFRS No. 1007 and K-IFRS No. 1033 have been amended.

K-IFRS No. 1118 introduces the following new requirements:

- Presentation of specified categories and defined subtotals in the statement of profit or loss

- Disclosure of management-defined performance measures (MPMs) in the notes to the financial statements

- Improvements to aggregation and disaggregation requirements

The new Standard is effective for annual reporting periods beginning on or after 1 January 2027, with early application permitted. The amendments to K-IFRS No. 1007 and K-IFRS No. 1033, as well as the amended K-IFRS No. 1008 and K-IFRS No. 1107, are effective when K-IFRS No. 1118 is applied. K-IFRS No. 1118 requires retrospective application and provides specific transitional provisions. In accordance with the retrospective application requirements of the Standard, the comparative information for the year ended December 31, 2026 will be restated in accordance with K-IFRS No. 1118.

The Company is currently assessing the impact of the new Standard on its financial statements. The adoption of the Standard is not expected to affect net income. However, it is expected to affect the determination and presentation of operating profit, as income and expenses in the statement of profit or loss will be classified into new categories.

*ⅲ) Annual Improvements to Korean International Financial Reporting Standards (K-IFRS)*

K-IFRS annual improvements are effective for annual reporting periods beginning on or after 1 January 2026 with earlier application permitted. The Company expects that there will be no material impact on the separate financial statements from these amendments.

- K-IFRS No. 1101 '*First-time adoption of Korean International Financial Reporting Standards'* – Hedging accounting by a first-time adopter

- K-IFRS No. 1107 '*Financial Instruments: Disclosures*' – Gain or loss on derecognition

and Guidance on implementing K-IFRS No. 1107

- K-IFRS No. 1109 '*Financial Instruments'* – Derecognition of lease liabilities and transaction price

- K-IFRS No. 1110 *'Consolidated Financial Statements'* – Determination of 'de facto agent'

- K-IFRS No. 1007 '*Statement of Cash Flows*' – Cost method

- K-IFRS No. 1109 '*Financial Instruments'* and K-IFRS No. 1107 '*Financial Instruments: Disclosures'* - Contracts referencing nature-dependent electricity

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SHINHAN FINANCIAL GROUP CO., LTD.

**Notes to the Separate Financial Statements**

December 31, 2025 and 2024

**<u>4. Financial risk management</u>**

**(a) Overview**

As a financial services provider, Shinhan Financial Group Co., Ltd. and its subsidiaries (hereinafter referred to as the "Group") manage various risks that may arise within business area, and the main risks are credit risk, market risk, interest rate risk and liquidity risk. These risks are recognized, measured, controlled and reported in accordance with the basic risk management policies established by the controlling company and each subsidiary.

*i) Risk management principles*

The risk management principles of the Group are as follows:

- All business activities take into account the balance of risks and profits within a predetermined risk appetite.

- The controlling company shall present the Group Risk Management Model Standard, supervise their compliance, and have responsibility and authority for group-level monitoring.

- Operate a risk-related decision-making system that enhances management's involvement.

- Organize and operate risk management organizations independent of the business sector.

- Operate a performance management system that clearly considers risks when making business decisions.

- Aim for preemptive and practical risk management functions.

- Share a cautious view to prepare for possible deterioration of the situation.

*ii) Risk management organization*

The fundamental policies for risk management of the Group are established by the Board of Directors of the controlling company, while the basic risk management strategies are established by the Risk Management Committee (the "Group Risk Management Committee") within the controlling company's Board of Directors. The Group's Chief Risk Officer (CRO) assists the Group Risk Management Committee and consults the risk management policies and strategies of the group and each subsidiary through the Group Risk Council, which includes the Chief Risk Officer of each subsidiary. The subsidiary implements the risk management policies and strategies of the Group through each company's risk management committee, risk-related committee, and risk management organization, and consistently establishes and implements the detailed risk management policies and strategies of the subsidiary. The risk management team of the controlling company assists the Group's Chief Risk Officer for risk management and supervision.

The Company has a hierarchical limit system to manage the risks of the Group to an appropriate level. The Group Risk Management Committee sets the risk limits that can be acceptable by the Group and each subsidiary, while the Risk Management Committee and the management-level risk Commitees of each subsidiary set and manage detailed risk limits by risk, department, desk, and product types.

*ii-1) Group Risk Management Committee* 

The Committee establishes the risk management framework for the controlling company and each of its subsidiaries and comprehensively manages Group-wide risk-related matters, including the establishment of the Group's fundamental risk management policies and strategies and the approval of limits. The Committee consists of directors of the controlling company.

The Committee's resolutions are as follows.

- Establish risk management basic policy in line with management strategy

- Determine the level of risk that can be assumed by the Group and each subsidiary

- Approve appropriate investment limit or loss allowance limit

- Enact and amend the Group Risk Management Regulations and the Group Risk Council Regulations

- Matters concerning risk management organization structure and division of duties

- Matters concerning the operation of the risk management system

- Matters concerning the establishment of various limits and approval of limits

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SHINHAN FINANCIAL GROUP CO., LTD.

**Notes to the Separate Financial Statements**

December 31, 2025 and 2024

- Make decisions on approval of the FSS's internal rating based approach for non-retail and retail credit rating systems

**<u>4. Financial risk management (continued)</u>**

**(a) Overview (continued)**

*ii-1) Group Risk Management Committee(continued)* 

- Matters concerning risk disclosure policy

- Analysis of crisis situation, related capital management plan and financing plan

- Matters deemed necessary by the board of directors

- Matters required by external regulations such as the Financial Services Commission and other regulations and guidelines

- Matters deemed necessary by the Chairman

*ii-2) Group Risk Management Council*

In order to maintain the Group's risk policies and strategies consistently, discuss all risk-related matters of the Group and make resolutions on matters necessary to implement the policies prescribed by the Group Risk Management Committee. The members shall be chaired by the chief risk officer of the group and shall be comprised of the chief risk officer of the major subsidiaries.

*iii) Risk management framework* 

*iii-1) Management of the Risk Capital* 

Risk capital refers to the capital required to compensate for the potential loss (risk) if it is actually realized. Risk capital management refers to the management of the risk assets considering its risk appetite, which is a datum point on the level of risk burden compared to available capital, so as to maintain the risk capital at an appropriate level. The controlling company and subsidiaries establish and operate a risk planning process to reflect the risk plan in advance when establishing financial and business plans for risk capital management, and establish a risk limit management system to control risk to an appropriate level.

*iii-2) Risk monitoring*

In order to proactively manage risks by periodically identifying risk factors that can affect the Group's business environment, the Company has established a multi-dimensional risk monitoring system. Each subsidiary is required to report to the Company on key issues that affect risk management at the Group level. The Company prepares weekly, monthly and ad-hoc monitoring reports for Group management, including the CRO.

In addition, the Risk Dashboard is operated to derive abnormal symptoms through three-dimensional monitoring of major portfolios, increased risks, and external environmental changes of assets for each subsidiary. If necessary, the Company takes preemptive risk management to establish and implement countermeasures.

*iii-3) Risk review*

When conducting new product, new business and major policy changes, risk factors are reviewed by using a pre-defined checklist to prevent indiscriminate promotion of business that is not easy to judge risk and to support rational decision making. The subsidiary's risk management department conducts a preliminary review and post-monitoring process on products, services, and projects to be pursued in the business division. In case of matters that are linked or jointly promoted with other subsidiaries, the risk reviews are carried out after prior-consultation with the risk management department of the controlling company.

------

SHINHAN FINANCIAL GROUP CO., LTD.

**Notes to the Separate Financial Statements**

December 31, 2025 and 2024

**<u>4. Financial risk management (continued)</u>**

**(a) Overview (continued)**

*iii) Risk management framework (continued)*

*iii-4) Crisis management*

The Company maintains a group-wide risk management system to detect the signals of any risk crisis and, in the event of a crisis actually happening, to respond on a timely, efficient and flexible basis so as to ensure the Group's survival as a going concern. Each subsidiary maintains crisis planning for four levels of contingencies, namely, "cautious', "alert", "imminent crisis" and "crisis", determination of which is made based on quantitative and qualitative monitoring and consequence analysis, and upon the happening of any such contingency, is required to respond according to a prescribed contingency plan. At the controlling company level, the Company maintains and installs crisis detection and response system which is applied consistently group-wide, and upon the happening of any contingency at two or more subsidiary levels, the Company directly takes charge of the situation so that the Company manages it on a concerted group wide basis.

**(b) Credit risk** 

 *i) Credit risk management*

Credit risk is the risk of potential economic loss that may be caused if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and is the largest risk which the Company faces. The Company's credit risk management encompasses all areas of credit that may result in potential economic loss, including not just transactions that are recorded on the balance sheet, but also off-balance-sheet transactions such as guarantees, loan commitments and derivative transactions.

< Techniques, assumptions and input variables used to measure impairment>

*i-1) Determining significant increases in credit risk since initial recognition*

At the end of each reporting period, the Company assesses whether the credit risk on a financial instrument has increased significantly since initial recognition. When making the assessment, the Company uses the change in the risk of a default occurring over the expected life of the financial instrument instead of the change in the amount of expected credit losses. To make that assessment, the Company compares the risk of a default occurring on the financial instrument as at the reporting date with the risk of a default occurring on the financial instrument as at the date of initial recognition and consider reasonable and supportable information, that is available without undue cost or effort, that is indicative of significant increases in credit risk since initial recognition. This information includes the default experience data we have and the analysis results of internal credit rating experts.

① Measuring the risk of default

The Company assigns an internal credit risk rating to each individual exposure based on observable data and historical experiences that have been found to have a reasonable correlation with the risk of default. The internal credit risk rating is determined by considering both qualitative and quantitative factors that indicate the risk of default, which may vary depending on the nature of the exposure and the type of borrower.

② Measuring term structure of probability of default

Internal credit rating is a key input variable for determining term structure of probability of default. The Company accumulates information after analyzing the information regarding exposure to credit risk and default information by the type of product and borrower and results of internal credit risk assessment. For some portfolios, the Company uses information obtained from external credit rating agencies when performing these analyses.

------

SHINHAN FINANCIAL GROUP CO., LTD.

**Notes to the Separate Financial Statements**

December 31, 2025 and 2024

**<u>4. Financial risk management (continued)</u>**

**(b) Credit risk (continued)**

 *i) Credit risk management (continued)*

*i-1) Determining significant increases in credit risk since initial recognition (continued)*

② Measuring term structure of probability of default (continued)

The Company applies statistical techniques to estimate the probability of default for the remaining life of the exposure from the accumulated data and to estimate changes in the estimated probability of default over time.

③ Significant increases in credit risk

The Company uses the indicators defined as per portfolio to determine the significant increase in credit risk, and such indicators generally consist of changes in the risk of default estimated from changes in the internal credit risk rating, qualitative factors, days of delinquency, and others.

*i-2) Risk of default*

The Company considers a financial asset to be in default if it meets one or more of the following conditions:

- if a borrower is overdue by 90 days or more from the contractual payment date

- if the Company judges that it is not possible to recover principal and interest without enforcing the collateral on a financial asset

The Company uses the following indicators when determining whether a borrower is in default:

- Qualitative factors (e.g. breach of contractual terms),

- Quantitative factors (e.g. if the same borrower does not perform more than one payment obligations to the Company, the number of days past due per payment obligation. However, in the case of a specific portfolio, the Company uses the number of days past due for each financial instrument),

- Internal observation data and external data

The definition of default applied by the Company generally conforms to the definition of default defined for regulatory capital management purposes; however, depending on the situations, the information used to determine whether a default has incurred, and the extent thereof may vary.

------

SHINHAN FINANCIAL GROUP CO., LTD.

**Notes to the Separate Financial Statements**

December 31, 2025 and 2024

**<u>4. Financial risk management (continued)</u>**

**(b) Credit risk (continued)**

 *i) Credit risk management (continued)*

*i-3) Reflection of forward-looking information*

The Company reflects forward-looking information presented by internal experts based on a variety of information when measuring expected credit losses. For the purpose of estimating this forward-looking information, the Company utilizes the economic outlook published by domestic and overseas research institutes or government and public agencies.

The Company identified the key macroeconomic variables needed to forecast credit risk and credit losses for each portfolio as follows by analyzing data obtained from past experience and drew correlations across credit risk for each variable. After that, the Company has reflected the forward-looking information through a regression estimation.

---

| | |
|:---|:---|
| **Key macroeconomic variables** | **Correlation with credit risk** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;GDP growth rate | (-) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Private consumption growth rate | (-) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Facility investment growth rate | (-) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Consumer price index growth rate | (+) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Balance on current account | (-) |

---

The predicted correlations between the macroeconomic variables and the risk of default, used by the Company, are derived based on data from over past ten years.

------

SHINHAN FINANCIAL GROUP CO., LTD.

**Notes to the Separate Financial Statements**

December 31, 2025 and 2024

**<u>4. Financial risk management (continued)</u>**

**(b) Credit risk (continued)**

 *i) Credit risk management (continued)*

*i-4) Measurement of expected credit losses*

Key variables used in measuring expected credit losses are as follows:

- Probability of default ("PD")

- Loss given default ("LGD")

- Exposure at default ("EAD")

These variables have been estimated from historical experience data and the statistical techniques developed internally and have been adjusted to reflect forward-looking information.

Estimates of PD over a specified period are estimated by reflecting characteristics of counterparties and their exposure, based on a statistical model at a specific point of time. The Company uses its own information to develop a statistical credit assessment model used for the estimation, and additional information observed in the market is considered for some portfolios such as a group of large corporates. When a counterparty or exposure is concentrated in specific grades, the method of measuring PD for those grades would be adjusted, and the PD by grade is estimated by considering contract expiration of the exposure.

LGD refers to the expected loss if a borrower defaults. The Company calculates LGD based on the experience recovery rate measured from past default exposures. The model for measuring LGD is developed to reflect type of collateral, seniority of collateral, type of borrower, and cost of recovery. In particular, LGD for retail loan products uses loan to value (LTV) as a key variable. The recovery rate reflected in the LGD calculation is based on the present value of recovery amount, discounted at the effective interest rate.

EAD refers to the expected exposure at the time of default. The Company derives EAD reflecting a rate at which the current exposure is expected to be used additionally up to the point of default within the contractual limit. EAD of financial assets is equal to the total carrying amount of the asset, and EAD of loan commitments or financial guarantee contracts is calculated as the sum of the amount expected to be used in the future.

In measuring expected credit losses on financial assets, the Company uses the contractual maturity as the period subject to expected credit loss measurement. The contractual maturity is computed by considering the extension right held by the borrower.

Risk factors of PD, LGD and EAD are collectively estimated according to the following criteria:

- Type of products

- Internal credit risk rating

- Type of collateral

- Loan to value ("LTV")

- Industry that the borrower belongs to

- Location of the borrower or collateral

- Days of delinquency

The criteria classifying groups is periodically reviewed to maintain the homogeneity of the group and adjusted if necessary. The Company uses external benchmark information to supplement internal information for a particular portfolio that did not have sufficient internal data accumulated from past experience.

------

SHINHAN FINANCIAL GROUP CO., LTD.

**Notes to the Separate Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**<u>4. Financial risk management (continued)</u>**

**(b) Credit risk (continued)**

*i-5) Write-off of financial assets*

The Company writes off a portion of or entire loan or debt security for which the Company does not expect to receive its principal and interest. In general, the Company writes off the balance when it is deemed that the borrower has no sufficient resources or income to repay the principal and interest. Such determination on write-off is carried out in accordance with the internal rules of the Company and is carried out with the approval of Financial Supervisory Service, if necessary. The Company may continue to exercise its right of collection under its own recovery policy even after the write-off of financial assets.

*ii) The maximum exposure to credit risk of financial instruments, excluding equity securities, as of December 31, 2025 and 2024 is as follows:*

---

| | | | | |
|:---|:---|:---|:---|:---|
|  |  |  | **December 31, 2025** | **December 31, 2024** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Due from banks and loans at amortized cost (\*1): | Banks | W | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2589  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;151143  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Due from banks and loans at amortized cost (\*1): | Corporations |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2951878  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3837298  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Due from banks and loans at amortized cost (\*1): |  |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2954467  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3988441  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Financial assets at fair value through profit or loss | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Financial assets at fair value through profit or loss |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1667654  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1069628  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other financial assets at amortized cost (\*1), (\*2) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other financial assets at amortized cost (\*1), (\*2) |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;927158  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;488756  |
|  |  | W | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5549279 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5546825  |

---

(\*1) The maximum exposure amounts for due from banks, loans and other financial assets are measured as net of allowances.

(\*2) It is comprised of accounts receivable, accrued income, and guarantee deposits.

------

SHINHAN FINANCIAL GROUP CO., LTD.

**Notes to the Separate Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**<u>4. Financial risk management (continued)</u>**

**(b) Credit risk (continued)**

*iii) Impairment information of financial assets by credit risk*

Detailed information of financial assets at amortized costs on impairment as of December 31, 2025 and 2024 is as follows:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  |  | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** |
|  |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**12-month**<br>**ECL** | **Lifetime**<br>**ECL** | **Gross**<br>**amount** | **Allowance** | **Total, net** |
| &nbsp;&nbsp;&nbsp;&nbsp;Due from banks and loans at amortized cost (\*): |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Banks | &nbsp;&nbsp;W | 2590  | - | 2590  | (1) | 2589  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Corporations |  | 2953103  | - | 2953103  | (1225) | 2951878  |
|  |  | 2955693  | - | 2955693  | (1226) | 2954467  |
| &nbsp;&nbsp;&nbsp;&nbsp;Other financial assets at amortized cost |  | 927532  | - | 927532  | (374) | 927158  |
|  | &nbsp;&nbsp;W | 3883225  | - | 3883225  | (1600) | 3881625  |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  |  | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
|  |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**12-month**<br>**ECL** | **Lifetime**<br>**ECL** | **Gross**<br>**amount** | **Allowance** | **Total, net** |
| &nbsp;&nbsp;&nbsp;&nbsp;Due from banks and loans at amortized cost (\*): |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Banks | &nbsp;&nbsp;W | 151206  | - | 151206  | (63) | 151143  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Corporations |  | 3838903 | - | 3838903 | (1605) | 3837298  |
|  |  | 3990109  | - | 3990109  | (1668) | 3988441  |
| &nbsp;&nbsp;&nbsp;&nbsp;Other financial assets at amortized cost |  | 488954 | - | 488954 | (198) | 488756 |
|  | &nbsp;&nbsp;W | 4479063 | - | 4479063 | (1866) | 4477197 |

---

(\*) Credit quality of due from banks and loans is divided into Prime and Normal. Credit quality of due from banks and loans as of December 31, 2025 and 2024 is classified as Prime. The distinction between prime grade and normal grade is as follows:

---

| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;**Type of Borrower** | **Corporations and banks** |
| &nbsp;&nbsp;Grade: 1. Prime | Internal credit rating of BBB+ or above |
| &nbsp;&nbsp;Grade: 2. Normal | Internal credit rating of below BBB+ |

---

------

SHINHAN FINANCIAL GROUP CO., LTD.

**Notes to the Separate Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**<u>4. Financial risk management (continued)</u>**

**(c) Market risk** 

Market risk refers to the risk of loss that may occur due to changes in market price such as interest rates, equity prices, and foreign exchange rates, etc.

*i) Interest rate risk*

Interest rate risk refers to the risk of loss that changes in market interest rates can result in changes in net interest

income (NII) or net asset value (NPV).

Interest rate gap analysis is a method of measuring the sensitivity of net interest income from interest rate fluctuations

by preparing interest rate gap tables that allocate interest income asset, liability, and off-balance-sheet item transaction item positions to maturity based on the agreed cash flow and interest rate revision date.

The results of interest rate gap analysis as of December 31, 2025 and 2024 are as follows:

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** |
|  |  | **Less than** <br>**1 month** | **1 month ~ 3 months** | **3 months ~ 6 months** | **6 months ~** <br>**1 year** | **1 year ~** <br>**5 years** | **More than** <br>**5 years** | **Total** |
| &nbsp;&nbsp;&nbsp;Interest-earning assets: |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Due from banks |  | 2587  | - | - | - | &nbsp;&nbsp;&nbsp;- | - | 2587  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loans at amortized <br>cost | W | 10000  | 510000  | 530027  | 70000  | &nbsp;&nbsp;&nbsp;1833101  | - | 2953128  |
|  |  | 12587  | 510000  | 530027  | 70000  | &nbsp;&nbsp;&nbsp;1833101  | - | 2955715  |
| &nbsp;&nbsp;&nbsp; <br>Interest-bearing liabilities: |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Borrowings |  | 10000  | - | - | - | - | - | 10000  |
| &nbsp;&nbsp;Debt securities issued |  | 817450  | 550000  | 520000  | 670000  | 7774900  | 140000  | 10472350  |
|  |  | 827450  | 550000  | 520000  | 670000  | 7774900  | 140000  | 10482350  |
| Sensitivity gap | W | (814863) | (40000) | 10027  | (600000) | (5941799) | (140000) | (7526635) |
| Cumulative gap |  | (814863) | (854863) | (844836) | (1444836) | (7386635) | (7526635) |  |

---

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
|  |  | **Less than** <br>**1 month** | **1 month ~ 3 months** | **3 months ~ 6 months** | **6 months ~** <br>**1 year** | **1 year ~** <br>**5 years** | **More than** <br>**5 years** | **Total** |
| &nbsp;&nbsp;&nbsp;Interest-earning assets: |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Due from banks |  | 9  | - | 151194 | - | &nbsp;&nbsp;&nbsp;- | - | 151203  |
| &nbsp;&nbsp;Loans at amortized <br>cost | W | 10000 | 780300 | 350000 | 1340590 | &nbsp;&nbsp;&nbsp;1358100 | - | 3838990 |
|  |  | 10009  | 780300 | 501194 | 1340590 | &nbsp;&nbsp;&nbsp;1358100 | - | 3990193 |
| &nbsp;&nbsp;&nbsp; <br>Interest-bearing liabilities: |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Borrowings |  | 10000 | 10000 | -  | - | - | - | 20000  |
| &nbsp;&nbsp;Debt securities issued |  | -  | 1285000 | 760000 | 970000 | 7530000 | 200000 | 10745000 |
|  |  | 10000 | 1295000 | 760000 | 970000 | 7530000 | 200000 | 10765000 |
| Sensitivity gap | W | 9 | (514700) | (258806) | 370590 | (6171900) | (200000) | (6774807) |
| Cumulative gap |  | 9 | (514691) | (773497) | (402907) | (6574807) | (6774807) |  |

---

------

SHINHAN FINANCIAL GROUP CO., LTD.

**Notes to the Separate Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**<u>4. Financial risk management (continued)</u>**

 **(c) Market risk** 

*ii) Foreign exchange risk* 

Foreign exchange risk refers to the risk of loss that may arise from fluctuations in the fair value or future cash flow of foreign exchange risk exposure due to exchange rate fluctuations. Foreign exchange risk exposure can be understood as the difference between foreign currency denominated assets and liabilities (net position), and derivative financial instruments with exchange rate as underlying asset. Meanwhile, there are no items in the company's foreign currency assets and liabilities that apply hedge accounting.

The Company's foreign currency financial assets and liabilities are exposed to exchange rate risk. Exchange rate risk is calculated and managed based on the required capital by the standard method. The risk weighting for the currency has been raised from 8% to 15% (high-flow currency 10.6%) as the standard method of required capital is revised from 2023.

As of December 31, 2025 and 2024, the required capital amount by the standard method, exposure to foreign exchange risk and changes in net assets assuming a 5% weaker and stronger dollar, are as follows.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** |
| **Classification** | **Foreign currency** | **Foreign currency** | **Won equivalent** | **5% increase** | **5% decrease** |
| **Classification** | **Currency** | **Amount** | **Won equivalent** | **5% increase** | **5% decrease** |
| &nbsp;&nbsp;&nbsp;Assets in foreign currency |  |  |  |  |  |
| &nbsp;&nbsp;Due from banks | USD | 10002  | 14  | 15  | 13  |
| &nbsp;&nbsp;&nbsp;Loans at amortized cost | USD | 720000000  | 1033128  | 1084784  | 981472  |
| &nbsp;&nbsp;&nbsp;Financial assets - FVTPL | USD | 797461386  | 1144277  | 1201491  | 1087063  |
| &nbsp;&nbsp;&nbsp;Other financial assets at amortized cost | USD | 11422008  | 16389  | 17208  | 15570  |
|  | USD | 1528893396  | 2193808  | 2303498  | 2084118  |
| Liabilities in foreign currency |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Debt securities issued in foreign currency | USD | 1494090016  | 2143870  | 2251064  | 2036677  |
| &nbsp;&nbsp;&nbsp;Other financial liabilities | USD | 23476900  | 33687  | 35371  | 32003  |
|  | USD | 1517566916  | 2177557  | 2286435  | 2068680  |
| &nbsp;&nbsp;&nbsp;Amount of financial statement exposure | USD | 11326480 | 16251 | 17063 | 15438 |
| Net capital effect | Net capital effect | Net capital effect | Net capital effect | 812 | (813) |
| Regulatory capital (standardized approach) | Regulatory capital (standardized approach) | Regulatory capital (standardized approach) | 435255 | 435255 | 435255 |

---

------

SHINHAN FINANCIAL GROUP CO., LTD.

**Notes to the Separate Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**<u>4. Financial risk management (continued)</u>** 

**(c) Market risk (continued)**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
| **Classification** | **Foreign currency** | **Foreign currency** | **Won equivalent** | **5% increase** | **5% decrease** |
| **Classification** | **Currency** | **Amount** | **Won equivalent** | **5% increase** | **5% decrease** |
| &nbsp;&nbsp;&nbsp;Assets in foreign currency |  |  |  |  |  |
| &nbsp;&nbsp;Due from banks | USD | 5984  | 9  | 9  | 9  |
| &nbsp;&nbsp;&nbsp;Loans at amortized cost | USD | 1217000000  | 1788990  | 1878440 | 1699541  |
| &nbsp;&nbsp;&nbsp;Financial assets - FVTPL | USD | 282172057 | 414793 | 435533 | 394053 |
| &nbsp;&nbsp;&nbsp;Other financial assets at amortized cost | USD | 10952433 | 16100 | 16905 | 15295 |
|  | USD | 1510130474 | 2219892 | 2330887 | 2108898  |
| Liabilities in foreign currency |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Debt securities issued in foreign currency | USD | 1495161396 | 2197887 | 2307781 | 2087993 |
| &nbsp;&nbsp;&nbsp;Other financial liabilities | USD | 20777442 | 30543 | 32070 | 29016 |
|  | USD | 1515938838 | 2228430 | 2339851  | 2117009 |
| &nbsp;&nbsp;&nbsp;Amount of financial statement exposure | USD | (5808364) | (8538) | (8964) | (8111) |
| Net capital effect | Net capital effect | Net capital effect | Net capital effect | (426) | 427 |
| Regulatory capital (standardized approach) | Regulatory capital (standardized approach) | Regulatory capital (standardized approach) | 389673  | 389673  | 389673  |

---

**(d) Liquidity risk**

Liquidity risk refers to the risk of unexpected losses (such as the disposal of assets abnormal pricing, the procurement of high interest rates, etc.) or insolvency due to inconsistency in funding periods between assets and liabilities or a sudden outflow of funds.

Under the Financial Holding Companies Act, the Company manages its liquidity by maintaining assets with a remaining maturity of one month or less in excess of corresponding liabilities at the end of each month

The details of the composition of non-derivative financial instruments by remaining period are as of December 31, 2025 and 2024 are as follows:

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** |
|  |  | **Less than** <br>**1 month** | **1 month ~** <br>**3 months** | **3 months ~** <br>**6 months** | **6 months ~** <br>**1 year** | **1 year ~** <br>**5 years** | **More than** <br>**5 years** | **Total** |
| &nbsp;&nbsp;&nbsp;**Non-derivatives** |  |  |  |  |  |  |  |  |
| Assets: |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Due from banks |  | 2587  | - | - | - | - | - | 2587  |
| &nbsp;&nbsp;&nbsp;Loans at amortized cost |  | 34142  | 516628  | 542979  | 106872  | 2045114  | - | 3245735  |
| &nbsp;&nbsp;&nbsp;Financial assets - FVTPL |  | 1667654  | - | - | - | - | - | 1667654  |
| &nbsp;&nbsp;&nbsp;&nbsp;Other financial assets |  | 9877  | 54842  | 635149  | 40882  | 143356  | 21627  | 905733  |
|  | W | 1714260  | 571470  | 1178128  | 147754  | 2188470  | 21627  | 5821709  |
| Liabilities: |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Borrowings |  | 10000  | - | - | - | - | - | 10000  |
| &nbsp;&nbsp;&nbsp;&nbsp;Debt securities issued |  | 880482  | 591353  | 581788  | 816521  | 8337526  | 148540  | 11356210  |
| &nbsp;&nbsp;&nbsp;&nbsp;Other financial<br>liabilities |  | 27733  | 64960  | 7235  | 4987  | 159489  | - | 264404  |
|  |  | 918215  | 656313  | 589023  | 821508  | 8497015  | 148540  | 11630614  |
| Net assets (liabilities) | W | 796045  | (84843) | 589105  | (673754) | (6308545) | (126913) | (5808905) |

---

------

SHINHAN FINANCIAL GROUP CO., LTD.

**Notes to the Separate Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**<u>4. Financial risk management (continued)</u>** 

**(d) Liquidity risk (continued)**

The details of the composition of non-derivative financial instruments by remaining period are as of December 31, 2025 and 2024 are as follows (continued):

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
|  |  | **Less than** <br>**1 month** | **1 month ~** <br>**3 months** | **3 months ~** <br>**6 months** | **6 months ~** <br>**1 year** | **1 year ~** <br>**5 years** | **More than** <br>**5 years** | **Total** |
| &nbsp;&nbsp;&nbsp;**Non-derivatives** |  |  |  |  |  |  |  |  |
| Assets: |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Due from banks |  | 9  | - | 151194 | - | - | - | 151203  |
| &nbsp;&nbsp;&nbsp;Loans at amortized cost |  | 16540 | 804810 | 364413 | 1369150 | 1388544  | - | 3943457 |
| &nbsp;&nbsp;&nbsp;Financial assets - FVTPL |  | 1069628 | - | - | - | - | - | 1069628 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other financial assets |  | 13238 | 5031 | 315682 | 25412 | 94157 | 13402 | 466922 |
|  | W | 1099415 | 809841 | 831289 | 1394562 | 1482701 | 13402 | 5631210 |
| Liabilities: |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Borrowings |  | 10000 | 10000 | - | - | - | - | 20000 |
| &nbsp;&nbsp;&nbsp;&nbsp;Debt securities issued |  | 47194 | 1341073 | 824623 | 1108604 | 8046442 | 214183 | 11582119 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other financial<br>liabilities |  | 26469 | 7221 | 198009 | 16128  | 105779  | - | 353606 |
|  |  | 83663 | 1358294 | 1022632 | 1124732 | 8152221 | 214183 | 11955725 |
| Net assets (liabilities) | W | 1015752 | (548453) | (191343) | 269830 | (6669520) | (200781) | (6324515) |

---

The above amounts include both principal and interest cash flows. As of December 31, 2025 and 2024, the deposit of W 3 million which is limited to use as a deposit for checking account opening, is excluded from the cash flows.

------

SHINHAN FINANCIAL GROUP CO., LTD.

**Notes to the Separate Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**<u>4. Financial risk management (continued)</u>** 

**(e) Measurement for the fair value of financial instruments**

The fair values of financial instruments being traded in an active market are determined by the published market prices of each period end. The published market prices of financial instruments being held by the Company are based on the trading agencies' notifications.

If the market for a financial instrument is not active, such as OTC (Over-The-Counter market) derivatives, fair value is determined either by using a valuation technique or independent third-party valuation service. The Company uses its judgement to select a variety of methods and make rational assumptions that are mainly based on market conditions existing at the end of each reporting period.

The fair value of financial instruments is determined using valuation techniques, such as, a method of using recent transactions between independent parties with reasonable judgement and willingness to trade, a method of referring to the current fair value of other financial instruments that are substantially identical, discounted cash flow model and option pricing models.

The Company classifies and discloses fair value of financial instruments into the following three-level hierarchy:

Level 1: Financial instruments measured at quoted prices from active markets are classified as fair value level 1.

Level 2: Financial instruments measured using valuation techniques where all significant inputs are observable market data are classified as level 2.

Level 3: Financial instruments measured using valuation techniques where one or more significant inputs are not based on observable market data are classified as level 3.

*i) Financial instruments measured at fair value* 

*i-1) The fair value hierarchy of financial assets which are presented at their fair value in the statements of financial position as of December 31, 2025 and 2024 are as follows:*

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  |  | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** |
|  |  | **Level 1** | **Level 2** | &nbsp;&nbsp;&nbsp;**Level 3** | **Total** |
| &nbsp;&nbsp;&nbsp;&nbsp;**Assets** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Financial assets at fair value through profit or loss | W | - | 1667654  | 1492520  | 3160174  |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  |  | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
|  |  | **Level 1** | **Level 2** | &nbsp;&nbsp;&nbsp;**Level 3** | **Total** |
| &nbsp;&nbsp;&nbsp;&nbsp;**Assets** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Financial assets at fair value through profit or loss | W | - | 1069628 | 1483122 | 2552750 |

---

------

SHINHAN FINANCIAL GROUP CO., LTD.

**Notes to the Separate Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**<u>4. Financial risk management (continued)</u>** 

**(e) Measurement for the fair value of financial instruments (continued)**

*i-2) Changes in level 3 of the fair value hierarchy*

- Changes in level 3 of the fair value hierarchy for the years ended December 31, 2025 and 2024 are as follows:

---

| | | |
|:---|:---|:---|
|  |  | &nbsp;&nbsp;&nbsp;**December 31, 2025** |
|  |  | &nbsp;&nbsp;&nbsp;**Financial assets at FVTPL** |
| &nbsp;&nbsp;Beginning balance | W | 1483122  |
| Recognized in profit or loss  |  | 9398  |
| &nbsp;&nbsp;Purchases |  | 100000  |
| &nbsp;&nbsp;Settlement |  | (100000) |
| &nbsp;&nbsp;Ending balance | W | 1492520  |

---

---

| | | |
|:---|:---|:---|
|  |  | &nbsp;&nbsp;&nbsp;**December 31, 2024** |
|  |  | &nbsp;&nbsp;&nbsp;**Financial assets at FVTPL** |
| &nbsp;&nbsp;Beginning balance | W | 1,250,605 |
| Recognized in profit or loss  |  | 82,517 |
| &nbsp;&nbsp;Purchases |  | 150,000 |
| &nbsp;&nbsp;Ending balance | W | 1,483,122 |

---

*i-3) Valuation techniques and input variables unobservable in markets* 

*i-3-1) The valuation techniques and the fair value measurement input variables of financial instruments classified as level 2 as of December 31, 2025 and 2024 are as follows:*

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | &nbsp;&nbsp;**Classification** | &nbsp;&nbsp;**Valuation techniques** | &nbsp;&nbsp;**Type** | &nbsp;&nbsp; <br>**Carrying amount** | &nbsp;&nbsp;**Inputs** |
| &nbsp;&nbsp;**2025** | &nbsp;&nbsp;&nbsp;&nbsp;Financial assets at fair value through profit or loss | &nbsp;&nbsp;&nbsp;&nbsp;Net asset valuation approach | &nbsp;&nbsp;&nbsp;&nbsp;Beneficiary certificates | &nbsp;&nbsp; <br>1667654 | &nbsp;&nbsp;&nbsp;Prices of underlying assets such as bonds |
| &nbsp;&nbsp;**2024** | &nbsp;&nbsp;&nbsp;&nbsp;Financial assets at fair value through profit or loss | &nbsp;&nbsp;&nbsp;&nbsp;Net asset valuation approach | &nbsp;&nbsp;&nbsp;&nbsp;Beneficiary certificates | &nbsp;&nbsp; <br>1069628 | &nbsp;&nbsp;&nbsp;Prices of underlying assets such as bonds |

---

------

SHINHAN FINANCIAL GROUP CO., LTD.

**Notes to the Separate Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**<u>4. Financial risk management (continued)</u>** 

**(e) Measurement for the fair value of financial instruments (continued)**

*i-3-2) Information about valuation techniques and significant unobservable inputs in measuring financial instruments categorized as level 3 as of December 31, 2025 and 2024 are as follows:*

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** |
|  | &nbsp;&nbsp;**Valuation**<br>**technique** | &nbsp;&nbsp;**Type of financial instrument** |  | &nbsp;&nbsp;**Carrying amount** | &nbsp;&nbsp;**Significant**<br>**unobservable**<br>**input** | **Range of estimates for unobservable input** |
|  | &nbsp;&nbsp;**Valuation**<br>**technique** | &nbsp;&nbsp;**Type of financial instrument** |  | &nbsp;&nbsp;**Carrying amount** | &nbsp;&nbsp;**Significant**<br>**unobservable**<br>**input** | **Range of estimates for unobservable input** |
|  | &nbsp;&nbsp;**Valuation**<br>**technique** | &nbsp;&nbsp;**Type of financial instrument** |  | &nbsp;&nbsp;**Carrying amount** | &nbsp;&nbsp;**Significant**<br>**unobservable**<br>**input** | **Range of estimates for unobservable input** |
| **Financial assets** | **Financial assets** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Financial assets at fair value through profit or loss | Option model (\*) | &nbsp;&nbsp;Hybrid bonds | &nbsp;&nbsp;W | 1492520 | &nbsp;&nbsp;Volatility of<br>interest rate | 0.46%~0.86% |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
|  | &nbsp;&nbsp;**Valuation**<br>**technique** | &nbsp;&nbsp;**Type of financial instrument** |  | &nbsp;&nbsp;**Carrying amount** | &nbsp;&nbsp;**Significant**<br>**unobservable**<br>**input** | **Range of estimates for unobservable input** |
|  | &nbsp;&nbsp;**Valuation**<br>**technique** | &nbsp;&nbsp;**Type of financial instrument** |  | &nbsp;&nbsp;**Carrying amount** | &nbsp;&nbsp;**Significant**<br>**unobservable**<br>**input** | **Range of estimates for unobservable input** |
|  | &nbsp;&nbsp;**Valuation**<br>**technique** | &nbsp;&nbsp;**Type of financial instrument** |  | &nbsp;&nbsp;**Carrying amount** | &nbsp;&nbsp;**Significant**<br>**unobservable**<br>**input** | **Range of estimates for unobservable input** |
| **Financial assets** | **Financial assets** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Financial assets at fair value through profit or loss | Option model (\*) | &nbsp;&nbsp;Hybrid bonds | &nbsp;&nbsp;W | 1483122<br>| &nbsp;&nbsp;Volatility of<br>interest rate | 0.47%~1.13% |

---

(\*) It is calculated by applying the Hull-White model method.

*i-4) Sensitivity to changes in unobservable inputs*

- For level 3 fair value measurement, changing one or more of the unobservable inputs used to reasonably possible alternative assumptions would have the following effect on profit (loss), and other comprehensive income (loss) as of December 31, 2025 and 2024 are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  |  |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**December 31, 2025** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**December 31, 2025** |
| **Type of financial instrument** | **Type of financial instrument** |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Profit (loss) for the year** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Profit (loss) for the year** |
| **Type of financial instrument** | **Type of financial instrument** |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Favorable**<br>**change** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Unfavorable**<br>**change** |
| Recognized in profit or loss (\*) | &nbsp;&nbsp;&nbsp;Financial assets at fair value through profit or loss | W | 207 | (233) |

---

------

SHINHAN FINANCIAL GROUP CO., LTD.

**Notes to the Separate Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**<u>4. Financial risk management (continued)</u>** 

**(e) Measurement for the fair value of financial instruments (continued)**

*i-4) Sensitivity to changes in unobservable inputs (continued)*

---

| | | | | |
|:---|:---|:---|:---|:---|
|  |  |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**December 31, 2024** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**December 31, 2024** |
| **Type of financial instrument** | **Type of financial instrument** |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Profit (loss) for the year** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Profit (loss) for the year** |
| **Type of financial instrument** | **Type of financial instrument** |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Favorable**<br>**change** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Unfavorable**<br>**change** |
| Recognized in profit or loss (\*) | &nbsp;&nbsp;&nbsp;Financial assets at fair value through profit or loss | W | 493  | (524) |

---

(\*) Based on a 10% increase or decrease in interest rate volatility, which is a major unobservable input.

*ii) Financial instruments measured at amortized cost* 

*ii-1) The methods of measuring the fair value of financial instruments at amortized cost are as follows:*

---

| | |
|:---|:---|
| **Type** | **Measurement methods of fair value** |
| Due from banks | The carrying amount and the fair value for cash are identical and most deposits are either floating interest rate deposits or next-day deposits of short-term instruments. For this reason, the carrying value approximates fair value. |
| Loans | The fair value of the loans is measured by discounting the expected cash flow at the market interest rate and credit risk of the borrower, etc. |
| &nbsp;&nbsp;Borrowings and debt securities issued | The fair value of borrowings and debt securities issued is based on the published price quotations in an active market. In case there is no data for an active market price, it is measured by discounting the contractual cash flow at the market interest rate that takes into account the residual risk |

---

*ii-2) The carrying value and fair value of the financial instruments at amortized cost as of December 31, 2025 and 2024 are as follows:*

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  |  | **December 31, 2025** | **December 31, 2025** | **December 31, 2024** | **December 31, 2024** |
|  |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Carrying value** | **Fair value** | **Carrying value** | **Fair value** |
| Assets: |  |  |  |  |  |
| &nbsp;&nbsp;Due from banks at amortized cost | W | 2589  | 2589  | 151143 | 151143 |
| &nbsp;&nbsp;Loans at amortized cost |  | 2951878  | 3109700  | 3837298 | 3814558 |
| &nbsp;&nbsp;Other financial assets |  | 927158  | 927158  | 488756 | 488756 |
|  | W | 3881625  | 4039447  | 4477197 | 4454457 |
| Liabilities: |  |  |  |  |  |
| &nbsp;&nbsp;Borrowings | W | 9975  | 9976  | 19914 | 19922 |
| &nbsp;&nbsp;Debt securities issued |  | 10457205  | 10492523  | 10731336 | 10761924 |
| &nbsp;&nbsp;Other financial liabilities |  | 329942  | 329942  | 418727 | 418727 |
|  | W | 10797122  | 10832441  | 11169977 | 11200573 |

---

------

SHINHAN FINANCIAL GROUP CO., LTD.

**Notes to the Separate Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**<u>4. Financial risk management (continued)</u>**

**(e) Measurement for the fair value of financial instruments (continued)**

*ii) Financial instruments at amortized cost (continued)*

*ii-3) The fair value hierarchy of financial assets and liabilities which are not measured at their fair values in the statements of financial position but disclosed with their fair values as of December 31, 2025 and 2024 are as follows:* 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  |  | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** |
|  |  | **Level 1** | **Level 2** | &nbsp;&nbsp;&nbsp;**Level 3** | **Total** |
| Assets: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Due from banks at amortized cost | W | 2586  | 3  | - | 2589  |
| &nbsp;&nbsp;Loans at amortized cost |  | - | - | 3109700  | 3109700  |
| &nbsp;&nbsp;Other financial assets |  | - | - | 927158  | 927158  |
|  | W | 2586  | 3  | 4036858  | 4039447  |
| Liabilities: |  |  |  |  |  |
| &nbsp;&nbsp;Borrowings | W | - | 9976  | - | 9976  |
| &nbsp;&nbsp;Debt securities issued |  | - | 10492523  | - | 10492523  |
| &nbsp;&nbsp;Other financial liabilities |  | - | - | 329942  | 329942  |
|  | W | - | 10502499  | 329942  | 10832441  |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  |  | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
|  |  | **Level 1** | **Level 2** | &nbsp;&nbsp;&nbsp;**Level 3** | **Total** |
| Assets: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Due from banks at amortized cost | W | 151140 | 3  | - | 151143 |
| &nbsp;&nbsp;Loans at amortized cost |  | - | - | 3814558 | 3814558 |
| &nbsp;&nbsp;Other financial assets |  | - | - | 488756 | 488756 |
|  | W | 151140 | 3  | 4303314 | 4454457 |
| Liabilities: |  |  |  |  |  |
| &nbsp;&nbsp;Borrowings | W | - | 19922 | - | 19922 |
| &nbsp;&nbsp;Debt securities issued |  | - | 10761924 | - | 10761924 |
| &nbsp;&nbsp;Other financial liabilities |  | - | - | 418727 | 418727 |
|  | W | - | 10781846 | 418727 | 11200573 |

---

------

SHINHAN FINANCIAL GROUP CO., LTD.

**Notes to the Separate Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**<u>4. Financial risk management (continued)</u>**

**(e) Measurement for the fair value of financial instruments (continued)**

*ii) Financial instruments at amortized cost (continued)*

*ii-4) Information on valuation technique and inputs used as of December 31, 2025 and 2024 in measuring financial instruments not measured at fair value classified as level 2 or 3 is as follows:*

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** |
|  | **Valuation technique** |  | &nbsp;&nbsp;**Fair value** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Inputs** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Assets: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Due from banks at amortized cost | - | W | 3  | - |
| &nbsp;&nbsp;&nbsp;&nbsp;Loans at amortized cost | DCF |  | 3109700  | Discount rate |
| &nbsp;&nbsp;&nbsp;&nbsp;Other financial assets | DCF |  | 927158  | Discount rate |
|  |  | W | 4036861  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Liabilities: |  |  |  |  |
| &nbsp;&nbsp;Borrowings | DCF | W | 9976  | Discount rate |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Debt securities issued | DCF |  | 10492523  | Discount rate |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other financial liabilities | DCF |  | 329942  | Discount rate |
|  |  | W | 10832441  |  |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
|  | **Valuation technique** |  | &nbsp;&nbsp;**Fair value** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Inputs** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Assets: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Due from banks at amortized cost | - | W | 3  | - |
| &nbsp;&nbsp;&nbsp;&nbsp;Loans at amortized cost | DCF |  | 3814558 | Discount rate |
| &nbsp;&nbsp;&nbsp;&nbsp;Other financial assets | DCF |  | 488756 | Discount rate |
|  |  | W | 4303317 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Liabilities: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Borrowings | DCF | W | 19922 | Discount rate |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Debt securities issued | DCF |  | 10761924 | Discount rate |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other financial liabilities | DCF |  | 418727 | Discount rate |
|  |  | W | 11200573 |  |

---

------

SHINHAN FINANCIAL GROUP CO., LTD.

**Notes to the Separate Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**<u>4. Financial risk management (continued)</u>** 

**(f) Classification by categories of financial instruments**

*i) Financial assets and liabilities are measured at fair value or amortized cost. The carrying amounts of each category of financial assets and financial liabilities as of December 31, 2025 and 2024 are as follows:*

---

| | | | | |
|:---|:---|:---|:---|:---|
|  |  | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** |
|  |  | **Financial assets at fair value through profit or loss** | **Financial assets**<br>**at amortized cost** | **Financial liabilities**<br>**at amortized cost** |
| &nbsp;&nbsp;Assets: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash and due from banks at amortized cost | W | - | 2589  | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Financial assets at fair value through profit or loss |  | 3160174  | - | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loans at amortized cost |  | - | 2951878  | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other financial assets at amortized cost |  | - | 927158  | - |
|  | W | 3160174  | 3881625  | - |
| &nbsp;&nbsp;Liabilities: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Borrowings | W | - | - | 9975  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Debt securities issued |  | - | - | 10457205  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other financial liabilities |  | - | - | 329942  |
|  | W | - | - | 10797122  |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  |  | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
|  |  | **Financial assets at fair value through profit or loss** | **Financial assets**<br>**at amortized cost** | **Financial liabilities**<br>**at amortized cost** |
| &nbsp;&nbsp;Assets: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash and due from banks at amortized cost | W | - | 151143  | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Financial assets at fair value through profit or loss |  | 2552750 | - | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loans at amortized cost |  | - | 3837298 | - |
| &nbsp;&nbsp;Other financial assets at amortized cost |  | - | 488756 | - |
|  | W | 2552750 | 4477197 | - |
| &nbsp;&nbsp;Liabilities: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Borrowings | W | - | - | 19914 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Debt securities issued |  | - | - | 10731336 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other financial liabilities |  | - | - | 418727 |
|  | W | - | - | 11169977 |

---

------

SHINHAN FINANCIAL GROUP CO., LTD.

**Notes to the Separate Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**<u>4. Financial risk management (continued)</u>** 

**(f) Classification by categories of financial instruments (continued)**

*ii) Comprehensive income by categories of financial instruments for the years ended December 31, 2025 and 2024 are as follows:*

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** |
|  |  | **Net profit or loss** | **Net profit or loss** | **Net profit or loss** | **Net profit or loss** | **Net profit or loss** | **Other comprehensive income** |
|  |  | **Interest income**<br>**(expenses) (\*)** | **Provision for credit loss allowance** | **Valuation** <br>**and disposal** | **Foreign currency** | **Total** | **Other comprehensive income** |
| &nbsp;&nbsp;Financial assets at fair value through profit or loss | W | - | - | 71959  | 13103  | 85062  | - |
| &nbsp;&nbsp;Financial assets at amortized cost |  | 89331  | 266  | - | (21543) | 68054  | - |
| &nbsp;&nbsp;Financial liabilities at amortized cost | W | (335753) | - | - | 8149  | (327604) | - |

---

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
|  |  | **Net profit or loss** | **Net profit or loss** | **Net profit or loss** | **Net profit or loss** | **Net profit or loss** | **Other comprehensive income** |
|  |  | **Interest income**<br>**(expenses) (\*)** | **Provision for credit loss allowance** | **Valuation** <br>**and disposal** | **Foreign currency** | **Total** | **Other comprehensive income** |
| &nbsp;&nbsp;Financial assets at fair value through profit or loss | W | - | - | 89244 | 49811 | 139055 | - |
| &nbsp;&nbsp;Financial assets at amortized cost |  | 98770 | 215 | - | 221280 | 320265 | - |
| &nbsp;&nbsp;Financial liabilities at amortized cost | W | (334798) | - | - | (273219) | (608017) | - |

---

(\*) Calculated by using the effective interest method.

**(g) Capital risk management**

Pursuant to Financial Holding Company Supervisory Regulation, the Company complies with the debt ratio calculated as 'total liability divided by total equity subtracting regulatory reserve for credit loss' and calculates the dual leverage ratio as 'total invested amount on subsidiaries divided by total equity subtracting regulatory reserve for credit loss', for capital risk management purposes.

------

SHINHAN FINANCIAL GROUP CO., LTD.

**Notes to the Separate Financial Statements**

December 31, 2025 and 2024

**<u>5. Significant estimates and judgments</u>**

The preparation of financial statements requires the Company to make estimates and assumptions concerning the future. Estimates and assumptions are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. As the resulting accounting estimates will, by definition, seldom equal the related actual results, it can contain a significant risk of causing a material adjustment. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below.

(a) Income taxes

The Company has recognized current and deferred taxes that reflect tax consequences based on the best estimates in which the Company expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities. However, actual income taxes in the future may not be identical to the recognized tax assets and liabilities, and this difference can affect current and deferred tax at the period when the final tax effect is determined.

(b) Fair value of financial instruments

The fair values of financial instruments which are not actively traded in the market are determined by using valuation techniques. The Company determines valuation techniques and assumptions based on significant market conditions at the end of each reporting period. Diverse valuation techniques are used to determine the fair value of financial instruments, from generic valuation techniques to internally developed valuation models that incorporate various types of assumptions and variables.

(c) Allowance for credit losses

The Company determines and recognizes allowances for losses on loans and other receivables measured at amortized cost. The accuracy of allowances and provisions for credit losses is determined by the assumptions used for collectively assessed allowances and provisions for groups of loans.

------

SHINHAN FINANCIAL GROUP CO., LTD.

**Notes to the Separate Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**<u>6. Due from banks</u>**

(a) Due from banks as of December 31, 2025 and 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  |  | **December 31, 2025** | **December 31, 2024** |
| Due from banks |  |  |  |
| Due from banks at amortized cost | W | 2590  | 151206 |
| Less: allowance |  | (1) | (63) |
|  | W | 2589  | 151143 |

---

(b) Restricted due from banks as of December 31, 2025 and 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  |  | **December 31, 2025** | **December 31, 2024** |
| Deposit for checking account opening | W | 3 | 3 |

---

**<u>7. Financial assets at fair value through profit or loss</u>**

Financial instruments at fair value through profit or loss as of December 31, 2025 and 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  |  | **December 31, 2025** | **December 31, 2024** |
| Beneficiary certificates |  |  |  |
| Beneficiary certificates in Korean won | W | 907013  | 1023281 |
| Beneficiary certificates in foreign currency |  | 760641  | 46347 |
|  |  | 1667654  | 1069628 |
| Hybrid Bonds |  |  |  |
| &nbsp;&nbsp;Hybrid Bonds in Korean won |  | 1108884  | 1114676 |
| &nbsp;&nbsp;Hybrid Bonds in foreign currency |  | 383636  | 368446 |
|  |  | 1492520  | 1483122 |
|  | W | 3160174  | 2552750 |

---

------

SHINHAN FINANCIAL GROUP CO., LTD.

**Notes to the Separate Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**<u>8. Loans at amortized cost</u>**

(a) Loans at amortized cost as of December 31, 2025 and 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  |  | **December 31, 2025** | **December 31, 2024** |
| Corporate loans (Working Capital Loan) | W | 2953103  | 3838903 |
| Less: allowance |  | (1225) | (1605) |
|  | W | 2951878  | 3837298 |

---

(b) Changes in the carrying amount of loans at amortized cost, etc. for the years ended December 31, 2025 and 2024 are as follows:

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** |
|  |  | &nbsp;&nbsp;**Loans at amortized cost** | &nbsp;&nbsp;**Loans at amortized cost** | &nbsp;&nbsp;**Loans at amortized cost** | **Due from banks at amortized cost and other financial assets** | **Due from banks at amortized cost and other financial assets** | **Due from banks at amortized cost and other financial assets** |  |
|  |  | &nbsp;&nbsp;**12-month expected credit losses** | **Lifetime expected credit losses**  | &nbsp;&nbsp;**Impaired financial asset** | &nbsp;&nbsp;**12-month expected credit losses** | **Lifetime expected credit losses** | **Impaired financial asset** | **Total** |
| &nbsp;&nbsp;&nbsp;Beginning balance | &nbsp;&nbsp;&nbsp;&nbsp;W | 3838903  | - | - | 640160  | - | - | 4479063  |
| &nbsp;&nbsp;&nbsp;Transfer to 12-month expected credit losses |  | - | - | - | - | - | - | - |
| &nbsp;&nbsp;&nbsp;Transfer to lifetime expected credit losses |  | - | - | - | - | - | - | - |
| &nbsp;&nbsp;&nbsp;Transfer to impaired financial asset |  | - | - | - | - | - | - | - |
| &nbsp;&nbsp;&nbsp;Origination |  | 1576004  | - | - | - | - | - | 1576004  |
| &nbsp;&nbsp;&nbsp;Collection |  | (2480890) | - | - | - | - | - | (2480890) |
| &nbsp;&nbsp;&nbsp;Others (\*) |  | 19086  | - | - | 289962  | - | - | 309048  |
| &nbsp;&nbsp;&nbsp;Ending balance | W | 2953103  | - | - | 930122  | - | - | 3883225  |

---

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
|  |  | &nbsp;&nbsp;**Loans at amortized cost** | &nbsp;&nbsp;**Loans at amortized cost** | &nbsp;&nbsp;**Loans at amortized cost** | **Due from banks at amortized cost and other financial assets** | **Due from banks at amortized cost and other financial assets** | **Due from banks at amortized cost and other financial assets** |  |
|  |  | &nbsp;&nbsp;**12-month expected credit losses** | **Lifetime expected credit losses** | &nbsp;&nbsp;**Impaired financial asset** | &nbsp;&nbsp;**12-month expected credit losses** | **Lifetime expected credit losses** | **Impaired financial asset** | **Total** |
| &nbsp;&nbsp;&nbsp;Beginning balance | &nbsp;&nbsp;&nbsp;&nbsp;W | 4052900 | - | - | 507378 | - | - | 4560278 |
| &nbsp;&nbsp;&nbsp;Transfer to 12-month expected credit losses |  | - | - | - | - | - | - | - |
| &nbsp;&nbsp;&nbsp;Transfer to lifetime expected credit losses |  | - | - | - | - | - | - | - |
| &nbsp;&nbsp;&nbsp;Transfer to impaired financial asset |  | - | - | - | - | - | - | - |
| &nbsp;&nbsp;&nbsp;Origination |  | 180000 | - | - | - | - | - | 180000 |
| &nbsp;&nbsp;&nbsp;Collection |  | (615000) | - | - | - | - | - | (615000) |
| &nbsp;&nbsp;&nbsp;Others (\*) |  | 221003 | - | - | 132782 | - | - | 353785 |
| &nbsp;&nbsp;&nbsp;Ending balance | W | 3838903 | - | - | 640160 | - | - | 4479063 |

---

(\*) Other changes are due to dividends receivables, consolidation tax receivables, accrued income, changes in foreign exchange rates, etc.

------

SHINHAN FINANCIAL GROUP CO., LTD.

**Notes to the Separate Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**<u>8. Loans at amortized cost (continued)</u>**

(c) Changes in allowances for loans at amortized cost and other assets for the years ended December 31, 2025 and 2024 are as follows:

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** |
|  |  | &nbsp;&nbsp;**Loans at amortized cost** | &nbsp;&nbsp;**Loans at amortized cost** | &nbsp;&nbsp;**Loans at amortized cost** | **Due from banks at amortized cost and other financial assets** | **Due from banks at amortized cost and other financial assets** | **Due from banks at amortized cost and other financial assets** |  |
|  |  | &nbsp;&nbsp;**12-month expected credit losses** | **Lifetime expected credit losses** | &nbsp;&nbsp;**Impaired financial asset** | &nbsp;&nbsp;**12-month expected credit losses** | **Lifetime expected credit losses** | **Impaired financial asset** | **Total** |
| &nbsp;&nbsp;&nbsp;Beginning balance | &nbsp;&nbsp;&nbsp;&nbsp;W | 1605  | - | - | 261  | - | - | 1866  |
| &nbsp;&nbsp;&nbsp;Transfer to 12-month expected credit losses |  | - | - | - | - | - | - | - |
| &nbsp;&nbsp;&nbsp;Transfer to lifetime expected credit losses |  | - | - | - | - | - | - | - |
| &nbsp;&nbsp;&nbsp;Transfer to impaired financial asset |  | - | - | - | - | - | - | - |
| &nbsp;&nbsp;&nbsp;Provision (Reversal) |  | (380) | - | - | 114  | - | - | (266) |
| &nbsp;&nbsp;&nbsp;Ending balance | W | 1225  | - | - | 375  | - | - | 1600  |

---

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
|  |  | &nbsp;&nbsp;**Loans at amortized cost** | &nbsp;&nbsp;**Loans at amortized cost** | &nbsp;&nbsp;**Loans at amortized cost** | **Due from banks at amortized cost and other financial assets** | **Due from banks at amortized cost and other financial assets** | **Due from banks at amortized cost and other financial assets** |  |
|  |  | &nbsp;&nbsp;**12-month expected credit losses** | **Lifetime expected credit losses** | &nbsp;&nbsp;**Impaired financial asset** | &nbsp;&nbsp;**12-month expected credit losses** | **Lifetime expected credit losses** | **Impaired financial asset** | **Total** |
| &nbsp;&nbsp;&nbsp;Beginning balance | &nbsp;&nbsp;&nbsp;&nbsp;W | 1896 | - | - | 185  | - | - | 2081 |
| &nbsp;&nbsp;&nbsp;Transfer to 12-month expected credit losses |  | - | - | - | - | - | - | - |
| &nbsp;&nbsp;&nbsp;Transfer to lifetime expected credit losses |  | - | - | - | - | - | - | - |
| &nbsp;&nbsp;&nbsp;Transfer to impaired financial asset |  | - | - | - | - | - | - | - |
| &nbsp;&nbsp;&nbsp;Provision (Reversal)  |  | (291) | - | - | 76 | - | - | (215) |
| &nbsp;&nbsp;&nbsp;Ending balance | W | 1605 | - | - | 261 | - | - | 1866 |

---

------

SHINHAN FINANCIAL GROUP CO., LTD.

**Notes to the Separate Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**<u>9. Property and equipment</u>**

(a) Property and equipment as of December 31, 2025 and 2024 are as follows:

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
|  |  | **Acquisition cost** | &nbsp;&nbsp;**Accumulated depreciation** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Carrying** <br>**value** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Acquisition** <br>**cost** | **Accumulated depreciation** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Carrying** <br>**value** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Furniture and fixtures | W | 10196  | (7973) | 2223  | 9949 | (6932) | 3017 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other tangible assets |  | 10632  | (8784) | 1848  | 10597 | (7860) | 2737 |
| &nbsp;&nbsp;&nbsp;&nbsp;Right-of-use assets |  | 6961  | (6199) | 762  | 5843 | (5088) | 755 |
|  | W | 27789  | (22956) | 4833  | 26389 | (19880) | 6509 |

---

(b) Changes in property and equipment for the years ended December 31, 2025 and 2024 are as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  |  | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** |
|  |  | **Furniture and fixtures** | &nbsp;&nbsp;**Others** | **Right-of-use assets** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Beginning balance | W | 3017  | 2737  | 755  | 6509  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Acquisition |  | 247  | 36  | 1504  | 1787  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Disposal |  | - | - | (139) | (139) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation |  | (1041) | (925) | (1358) | (3324) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ending balance | W | 2223  | 1848  | 762  | 4833  |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  |  | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
|  |  | **Furniture and fixtures** | &nbsp;&nbsp;**Others** | **Right-of-use assets** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Beginning balance | W | 3581  | 2188  | 1817  | 7586  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Acquisition |  | 586  | 1510  | 1452  | 3548  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Disposal |  | (1) | - | (118) | (119) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation |  | (1149) | (961) | (2396) | (4506) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ending balance | W | 3017  | 2737  | 755  | 6509  |

---

------

SHINHAN FINANCIAL GROUP CO., LTD.

**Notes to the Separate Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**<u>10. Intangible assets</u>**

(a) Intangible assets as of December 31, 2025 and 2024 are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**December 31, 2025** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**December 31, 2025** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**December 31, 2025** |
|  |  | **Acquisition cost** | &nbsp;&nbsp;&nbsp;**Accumulated** <br>**amortization** | **Carrying amount** |
| &nbsp;&nbsp;&nbsp;Membership | W | 3021  | - | 3021  |
| &nbsp;&nbsp;&nbsp;Software |  | 6440  | (6132) | 308  |
| &nbsp;&nbsp;&nbsp;Development costs |  | 5330  | (1545) | 3785  |
|  | W | 14791  | (7677) | 7114  |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**December 31, 2024** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**December 31, 2024** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**December 31, 2024** |
|  |  | **Acquisition cost** | &nbsp;&nbsp;&nbsp;**Accumulated** <br>**amortization** | **Carrying amount** |
| &nbsp;&nbsp;&nbsp;Membership | W | 3020  | - | 3020  |
| &nbsp;&nbsp;&nbsp;Software |  | 6235  | (5894) | 341  |
| &nbsp;&nbsp;&nbsp;Development costs |  | 3785  | (658) | 3127  |
|  | W | 13040  | (6552) | 6488  |

---

(b) Changes in intangible assets for the years ended December 31, 2025 and 2024 are as follows:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  |  | &nbsp;&nbsp;**December 31, 2025** | &nbsp;&nbsp;**December 31, 2025** | &nbsp;&nbsp;**December 31, 2025** | &nbsp;&nbsp;**December 31, 2025** | &nbsp;&nbsp;**December 31, 2025** |
|  |  | **Beginning balance** | **Acquisition** | **Disposal** | **Amortization**<br>**(\*)** | &nbsp;&nbsp;**Ending Balance** |
| Membership | W | 3020  | 1  | - | - | 3021 |
| Software |  | 341  | 205  | - | (238) | 308  |
| Development costs |  | 3127  | 1546  | - | (888) | 3785  |
|  | W | 6488  | 1752  | - | (1126) | 7114  |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  |  | &nbsp;&nbsp;**December 31, 2024** | &nbsp;&nbsp;**December 31, 2024** | &nbsp;&nbsp;**December 31, 2024** | &nbsp;&nbsp;**December 31, 2024** | &nbsp;&nbsp;**December 31, 2024** |
|  |  | **Beginning balance** | **Acquisition** | **Disposal** | **Amortization**<br>**(\*)** | &nbsp;&nbsp;**Ending Balance** |
| Membership | W | 5352 | 107 | (2439) | - | 3020 |
| Software |  | 228 | 189 | - | (76) | 341 |
| Development costs |  | 2165 | 1517 | - | (555) | 3127 |
|  | W | 7745 | 1813 | (2439) | (631) | 6488 |

---

(\*) Amortization of intangible assets is classified as general administrative expenses.

------

SHINHAN FINANCIAL GROUP CO., LTD.

**Notes to the Separate Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**<u>11. Leases</u>** 

(a) The details of the change in the right-of-use assets for the years ended December 31, 2025 and 2024 are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  |  | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** |
|  |  | **Real estate** | **Vehicle** | **Total** |
| &nbsp;&nbsp;Beginning balance | W | 95  | 660  | 755  |
| Acquisitions |  | 1066  | 438  | 1504  |
| Disposals |  | - | (139) | (139) |
| Depreciation |  | (1031) | (327) | (1358) |
| &nbsp;&nbsp;Ending balance | W | 130  | 632  | 762  |
|  |  | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
|  |  | **Real estate** | **Vehicle** | **Total** |
| &nbsp;&nbsp;Beginning balance | W | 1160  | 657  | 1817  |
| Acquisitions |  | 1013  | 439  | 1452  |
| Disposals |  | - | (118) | (118) |
| Depreciation |  | (2078) | (318) | (2396) |
| &nbsp;&nbsp;Ending balance | W | 95  | 660  | 755  |

---

(b) The details of the maturity of the lease liabilities as the end of December 31, 2025 and 2024 are as follows:

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** |
|  |  | &nbsp;&nbsp;1 month<br>or less | 1 month ~<br>3 months <br>or less | 3 months ~<br>6 months<br>or less | 6 months ~<br>1 year<br>or less | 1 year ~<br>5 years<br>or less | More than 5 years | Total |
| &nbsp;&nbsp;Real estate | W | 43  | 74  | 55  | - | - | - | 172  |
| Vehicle |  | 54  | 60  | 81  | 153  | 365  | - | 713  |
|  | W | 97  | 134  | 136  | 153  | 365  | - | 885  |

---

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
|  |  | &nbsp;&nbsp;1 month<br>or less | 1 month ~<br>3 months <br>or less | 3 months ~<br>6 months<br>or less | 6 months ~<br>1 year<br>or less | 1 year ~<br>5 years<br>or less | More than 5 years | Total |
| &nbsp;&nbsp;Real estate | W | 37  | 63  | 34  | - | - | - | 134  |
| Vehicle |  | 50  | 58  | 77  | 142  | 420  | - | 747  |
|  | W | 87  | 121  | 111  | 142  | 420  | - | 881  |

---

(c) The exemptions from the application of lease standards for the years ended December 31, 2025 and 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  |  | **December 31, 2025** | **December 31, 2024** |
| &nbsp;&nbsp;Low value lease payments | W | 48 | 50 |
| &nbsp;&nbsp;Short-term lease payments (\*) |  | 985 | 407 |
| Total | W | 1033 | 457 |

---

(\*) Expenses with a lease period of less than 1 month are excluded.

(d) Cash outflows from leases for the years ended December 31, 2025 and 2024 are W 1,764 million and W 2,076 million, respectively.

------

SHINHAN FINANCIAL GROUP CO., LTD.

**Notes to the Separate Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**<u>12. Investments in subsidiaries</u>**

Investments in subsidiaries as of December 31, 2025 and 2024 are as follows:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
| **Investees** | &nbsp;&nbsp;**Ownership**<br>**Interest**<br>**(%)** |  | **Carrying value** | &nbsp;&nbsp;**Ownership**<br>**Interest**<br>**(%)** |  | **Carrying value** |
| Shinhan Bank | 100.0  |  | 13617579  | 100.0  |  | 13617579  |
| Shinhan Card Co., Ltd. | 100.0  |  | 7919672  | 100.0  |  | 7919672  |
| Shinhan Securities Co., Ltd. | 100.0  |  | 3001420  | 100.0  |  | 3001420  |
| Shinhan Life Insurance Co., Ltd.  | 100.0  |  | 4204526  | 100.0  |  | 4204533  |
| Shinhan Capital Co., Ltd. | 100.0  |  | 558921  | 100.0  |  | 558921  |
| &nbsp;&nbsp;&nbsp;Shinhan Asset Management Co., Ltd. | 100.0  |  | 326206  | 100.0  |  | 326206  |
| &nbsp;&nbsp;&nbsp;Jeju Bank (\*1) | 64.0  |  | 179643  | 75.3  |  | 179643  |
| &nbsp;&nbsp;&nbsp;Shinhan Savings Bank | 100.0  |  | 157065  | 100.0  |  | 157065  |
| &nbsp;&nbsp;&nbsp;Shinhan Asset Trust Co., Ltd. | 100.0  |  | 364789  | 100.0  |  | 364789  |
| Shinhan DS | 100.0  |  | 23026  | 100.0  |  | 23026  |
| &nbsp;&nbsp;Shinhan Fund Partners Co., Ltd. | 99.8  |  | 50092  | 99.8  |  | 50092  |
| &nbsp;&nbsp;Shinhan REITs Management Co., Ltd. | 100.0  |  | 30000  | 100.0  |  | 30000  |
| &nbsp;&nbsp;Shinhan Venture Investment Co., Ltd. | 100.0  |  | 75840  | 100.0  |  | 75840  |
| &nbsp;&nbsp;Shinhan EZ General Insurance Co., Ltd. (\*2) | 91.7  |  | 206271  | 85.1  |  | 106210  |
| &nbsp;&nbsp;SHC Management Co., Ltd. | 100.0  |  | 8655  | 100.0  |  | 8655  |
|  |  | W | 30723705  |  | W | 30623651 |

---

(\*1) The decrease in ownership interest during the current period was due to a third-party share issuance amounting to W 57,010 million (5,669,783 shares), in which the Company did not participate.

(\*2) The Company participated in a common share issuance amounting to W 100,000 million (16,983,695 shares) during the current period.

------

SHINHAN FINANCIAL GROUP CO., LTD.

**Notes to the Separate Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**<u>13. Other assets</u>**

Other assets as of December 31, 2025 and 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  |  | **December 31, 2025** | **December 31, 2024** |
| Guarantee deposits | W | 21627  | 13402  |
| Accounts receivable |  | 878063  | 447733  |
| Accrued income |  | 27841  | 27819  |
| Prepaid expenses |  | 301  | 74  |
| Sundry assets |  | 12  | 12  |
| Less: allowance |  | (374) | (198) |
|  | W | 927470  | 488842  |

---

**<u>14.</u> <u>Borrowings</u>**

Borrowings as of December 31, 2025 and December 31, 2024 are as follows:

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  |  | &nbsp;&nbsp;**December 31, 2025** | &nbsp;&nbsp;**December 31, 2025** | &nbsp;&nbsp;**December 31, 2025** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Lender** | **Period** | **Interest**<br>**rate (%)** |  | **Amount** | **Interest**<br>**rate (%)** |  | **Amount** |
| &nbsp;&nbsp;&nbsp;&nbsp;Borrowings<br>in Korean won | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;DB Financial Investment<br>Co., LTD. | &nbsp;&nbsp;&nbsp;2024.02.01<br>~2025.01.30 | 3.71 |  | - | 3.71 |  | 9969  |
| &nbsp;&nbsp;&nbsp;&nbsp;Borrowings<br>in Korean won | &nbsp;&nbsp;〃 | &nbsp;&nbsp;&nbsp;2025.01.31<br>~2026.01.30 | 3.01 |  | 9975 | - |  | - |
| &nbsp;&nbsp;&nbsp;&nbsp;Borrowings<br>in Korean won | &nbsp;&nbsp;Kyobo Securities Co., Ltd. | 2024.10.11<br>~2025.02.26 | 3.54 |  | - | 3.54 |  | 9945  |
|  |  |  |  | W | 9975 |  | W | 19914 |

---

------

SHINHAN FINANCIAL GROUP CO., LTD.

**Notes to the Separate Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**<u>15. Debt securities issued</u>**

Debt securities issued as of December 31, 2025 and 2024 are as follows:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | &nbsp;&nbsp;**December 31, 2025** | &nbsp;&nbsp;**December 31, 2025** | &nbsp;&nbsp;**December 31, 2025** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
|  | **Interest**<br>**rate (%)** |  | **Amount** | **Interest**<br>**rate (%)** |  | **Amount** |
| Debt securities issued in Korean won: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Debt securities issued | 1.43 ~ 6.17 | W | 8320000  | 1.40 ~ 6.17 | W | 8540000  |
| &nbsp;&nbsp;&nbsp;&nbsp;Discount |  |  | (6665) |  |  | (6551) |
|  |  |  | 8313335  |  |  | 8533449  |
| Debt securities issued in foreign currency: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Debt securities issued | 1.37 ~ 5.06 |  | 2152350  | 1.37 ~ 5.06 |  | 1470000  |
| &nbsp;&nbsp;&nbsp;&nbsp;Subordinated debt securities issued |  |  | - | 3.34 |  | 735000  |
| &nbsp;&nbsp;&nbsp;&nbsp;Discount  |  |  | (8480) |  |  | (7113) |
|  |  |  | 2143870  |  |  | 2197887  |
|  |  | W | 10457205  |  | W | 10731336  |

---

**<u>16. Defined benefit assets and liabilities</u>**

(a) Defined benefit obligations and plan assets

Defined benefit obligations and plan assets as of December 31, 2025 and 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  |  | **December 31, 2025** | **December 31, 2024** |
| Present value of defined benefit obligations | W | 26483 | 23895 |
| Fair value of plan assets |  | (36159) | (29517) |
| &nbsp;&nbsp;Recognized assets for defined benefit obligations | W | (9676) | (5622) |

---

(b) Changes in the present value of defined benefit obligation and plan assets for the years ended December 31, 2025 and 2024 are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  |  | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** |
|  |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Defined benefit**<br>**obligation** | **Plan assets** | **Net defined benefit liability** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Beginning balance | &nbsp;&nbsp;W | 23895  | (29517) | (5622) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Recognized in profit or loss (\*): |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Current service costs |  | 2087  | - | 2087  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest expense (income) |  | 996  | (1237) | (241) |
|  |  | 3083  | (1237) | 1846  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Recognized in other comprehensive income: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Remeasurements loss (gain): |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- Actuarial losses arising from: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Demographics assumptions |  | - | - | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Financial assumptions |  | (44) | - | (44) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Experience adjustment |  | 2582  | - | 2582  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- Return on plan assets |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;excluding interest income |  | - | 490  | 490  |
|  |  | 2538  | 490  | 3028  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Others:  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Benefits paid by the plan |  | (1386) | 2025  | 639  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Contributions paid into the plan |  | - | (7920) | (7920) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Succession |  | (1647) | - | (1647) |
|  |  | (3033) | (5895) | (8928) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ending balance | &nbsp;&nbsp;W | 26483  | (36159) | (9676) |

---

------

SHINHAN FINANCIAL GROUP CO., LTD.

**Notes to the Separate Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**<u>16. Defined benefit assets and liabilities (continued)</u>**

(b) Changes in the present value of defined benefit obligation and plan assets for the years ended December 31, 2025 and 2024 are as follows (continued):

---

| | | | | |
|:---|:---|:---|:---|:---|
|  |  | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
|  |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Defined benefit**<br>**obligation** | **Plan assets** | **Net defined benefit liability** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Beginning balance | &nbsp;&nbsp;W | 19728 | (26805) | (7077) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Recognized in profit or loss (\*): |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Current service costs |  | 1768  | - | 1768  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest expense (income) |  | 954  | (1308) | (354) |
|  |  | 2722  | (1308) | 1414  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Recognized in other comprehensive income: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Remeasurements loss (gain): |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- Actuarial losses arising from: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Demographics assumptions |  | (48) | - | (48) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Financial assumptions |  | 1537  | - | 1537  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Experience adjustment |  | 1654  | - | 1654 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- Return on plan assets |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;excluding interest income |  | - | 478  | 478  |
|  |  | 3143 | 478  | 3621 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Others:  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Benefits paid by the plan |  | (1494) | 1219  | (275) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Contributions paid into the plan |  | - | (3101) | (3101) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Succession |  | (204) | - | (204) |
|  |  | (1698) | (1882) | (3580) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ending balance | &nbsp;&nbsp;W | 23895  | (29517) | (5622) |

---

(\*) Profit or loss arising from defined benefit plans is included in general and administrative expenses.

(c) The Company's plan assets as of December 31, 2025 and 2024 consist entirely of deposits.

(d) Actuarial assumptions as of December 31, 2025 and 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | **December 31, 2025** | **December 31, 2024** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Description** |
| Discount rate | 4.60% | 4.30% | AA0 corporate bond yields |
| Future salary increasing rate | 2.66%<br>+ Upgrade rate | 2.40%<br>+ Upgrade rate | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Average of past 5 years |

---

(e) Sensitivity analysis

As of December 31, 2025 and 2024, reasonably possible changes in one of the relevant actuarial assumptions, holding other assumptions constant, would have affected the defined benefit obligation by the amounts shown below.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  |  | **December 31, 2025** | **December 31, 2025** | **December 31, 2024** | **December 31, 2024** |
|  |  | **The present value of defined benefit obligation** | **The present value of defined benefit obligation** | **The present value of defined benefit obligation** | **The present value of defined benefit obligation** |
|  |  | 1%p increase | 1%p decrease | 1%p increase | 1%p decrease |
| Discount rate | W | (1810) | 2018 | (1719) | 1927  |
| Future salary increasing rate |  | 2039 | (1861) | 1946  | (1767) |

---

(f) As of December 31, 2025 and 2024, the weighted-average duration of the defined benefit obligation is 7.59 years and 7.99 years, respectively.

(g) As of December 31, 2026, the estimated contribution is W 2,100 million.

------

SHINHAN FINANCIAL GROUP CO., LTD.

**Notes to the Separate Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**<u>17. Other liabilities</u>**

Other liabilities as of December 31, 2025 and 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  |  | **December 31, 2025** | **December 31, 2024** |
| Accounts payable | W | 31381  | 189580  |
| Accrued expenses  |  | 292792  | 223478  |
| Income taxes payable |  | 659527  | 132701  |
| Dividends payable |  | 4913  | 4826  |
| Lease liabilities (\*)  |  | 856  | 844  |
| Taxes withheld |  | 1718  | 931  |
|  | W | 991187  | 552360  |

---

(\*) As of December 31, 2025, the Company accounts for the lease liabilities as other liabilities. For the year ended December 31, 2025, there is no expense of variable lease payments that is not included in the measurement of lease liabilities. For the years ended December 31, 2025 and 2024, interest expense on lease liabilities is W 33 million and W 63 million, respectively.

**<u>18. Equity</u>**

(a) Equity as of December 31, 2025 and 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  |  | **December 31, 2025** | **December 31, 2024** |
| Capital stock (\*1): |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Ordinary shares | W | 2695586 | 2695586  |
| &nbsp;&nbsp;&nbsp;&nbsp;Preferred shares |  | 274055 | 274055  |
|  |  | 2969641 | 2969641  |
| Hybrid bonds |  | 4749837 | 4600121 |
| Capital surplus |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Share premium |  | 11350744 | 11350744  |
| Capital adjustments |  | (647347) | (296024) |
| Accumulated other comprehensive loss |  | (11363) | (9307) |
| Retained earnings |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Legal reserve (\*2) |  | 2969641 | 2865461  |
| &nbsp;&nbsp;&nbsp;&nbsp;Regulatory reserve for loan losses |  | 20462 | 20656  |
| &nbsp;&nbsp;&nbsp;&nbsp;Other legal reserves |  | 2000 | 2000  |
| &nbsp;&nbsp;&nbsp;&nbsp;Unappropriated retained earnings |  | 4931845 | 4844883  |
|  |  | 7923948 | 7733000  |
|  | W | 26335460 | 26348175  |

---

(\*1) Due to the retirement of earned surplus reserve, the capital is different from the total face value of the issued stock.

(\*2) Legal reserve is restricted for the dividend to stockholders by law or legislation. According to the article 53 of the Financial Holding Companies Act, the Company is required to appropriate a legal reserve in an amount equal to at least 10% of cash dividends for each accounting period until the reserve equals 100% of stated capital. The legal reserve may only be used to reduce a deficit or to transfer capital.

------

SHINHAN FINANCIAL GROUP CO., LTD.

**Notes to the Separate Financial Statements**

December 31, 2025 and 2024

(In millions of won, except per share data)

**<u>18. Equity (continued)</u>**

(b) Capital

*i)* Capital as of December 31, 2025 and 2024 are as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  |  | **December 31, 2025** | **December 31, 2025** | **December 31, 2024** | **December 31, 2024** |
| Total number of shares to be issued |  | 1000000000 | 1000000000 | 1000000000 | 1000000000 |
| Type of share |  | Ordinary shares | Preferred shares | Ordinary shares | Preferred shares |
| The amount per share | W | 5000 | - | 5000 | - |
| Total number of shares issued |  | 485494934 | - | 503445325 | - |
| Capital Stock (\*) |  | 2695586 | 274055 | 2695586 | 274055 |

---

(\*) Due to the retirement of earned surplus reserve, the capital is different from the total face value of the issued stock.

*ii)* Changes in the number of ordinary shares for the years ended December 31, 2025 and 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  |  | **December 31, 2025** | **December 31, 2024** |
| &nbsp;&nbsp;Beginning  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;W | 498859764  | 512753119 |
| &nbsp;&nbsp;Increase |  | - | 6353 |
| &nbsp;&nbsp;Decrease |  | (21702365) | (13899708) |
| &nbsp;&nbsp;Ending  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;W | 477157399  | 498859764 |

---

(c) Hybrid bonds

Hybrid bonds classified as other equity instruments as of December 31, 2025 and 2024 are as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Issue date** | **Issue date** | **Maturity date** | **Interest rate (%)** | &nbsp;&nbsp;&nbsp;**December 31,** <br>**2025** | **December 31, 2024** |
| Hybrid bonds in KRW | June 25, 2015 | June 25, 2045 | 4.38 | - | 199455  |
| Hybrid bonds in KRW | September 15, 2017 | Perpetual bond | 4.25 | 89783 | 89783  |
| Hybrid bonds in KRW | April 13, 2018 | Perpetual bond | 4.56 | 14955 | 14955  |
| Hybrid bonds in KRW | September 17, 2020 | Perpetual bond | 3.12 | - | 448699  |
| Hybrid bonds in KRW | March 16, 2021 | Perpetual bond | 2.94 | 429009 | 429009  |
| Hybrid bonds in KRW | March 16, 2021 | Perpetual bond | 3.30 | 169581 | 169581  |
| Hybrid bonds in KRW | January 25, 2022 | Perpetual bond | 3.90 | 560438 | 560438  |
| Hybrid bonds in KRW | January 25, 2022 | Perpetual bond | 4.00 | 37853 | 37853  |
| Hybrid bonds in KRW | August 26, 2022 | Perpetual bond | 4.93 | 343026 | 343026  |
| Hybrid bonds in KRW | August 26, 2022 | Perpetual bond | 5.15 | 55803 | 55803  |
| Hybrid bonds in KRW | January 30, 2023 | Perpetual bond | 5.14 | 398831 | 398831  |
| Hybrid bonds in KRW | July 13, 2023 | Perpetual bond | 5.40 | 498815 | 498815  |
| Hybrid bonds in KRW | January 31, 2024 | Perpetual bond | 4.49 | 398833 | 398833 |
| Hybrid bonds in KRW | September 12, 2024 | Perpetual bond | 4.00 | 399033 | 399033 |

---

------

SHINHAN FINANCIAL GROUP CO., LTD.

**Notes to the Separate Financial Statements**

December 31, 2025 and 2024

(In millions of won, except per share data)

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | February 13, 2025 | Perpetual bond | 3.90 |  | 398835 | - |
|  | September 9, 2025 | Perpetual bond | 3.26 |  | 399035 | - |
| Hybrid bonds in USD | May 12, 2021 | Perpetual bond | 2.88 |  | 556007 | 556007 |
|  |  |  |  | W | 4749837 | 4600121 |

---

(\*) For the year ended December 31, 2025, the deduction for capital related to hybrid bond issued is W 2,131 million.

The Company can make early redemption for the above bonds, after 5 or 10 years from the issue date and has the rights to extend the maturity under the same condition.

------

SHINHAN FINANCIAL GROUP CO., LTD.

**Notes to the Separate Financial Statements**

December 31, 2025 and 2024

(In millions of won, except per share data)

**<u>18. Equity (continued)</u>**

(d) Capital adjustments

*i)* Changes in accumulated capital adjustments for the years ended December 31, 2025 and 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  |  | **December 31, 2025** | **December 31, 2024** |
| &nbsp;&nbsp;Beginning balance | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;W | (296024) | (148464) |
| &nbsp;&nbsp;Disposal of retained earnings |  | 524 | 102667 |
| &nbsp;&nbsp;Redemption of hybrid bonds |  | (1846) | (524) |
| &nbsp;&nbsp;Acquisition of treasury stock |  | (1250001) | (700300) |
| &nbsp;&nbsp;Disposal of treasury stock |  | - | 297 |
| &nbsp;&nbsp;Retirement of treasury stock |  | 900000 | 450300 |
| &nbsp;&nbsp;Ending balance | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;W | (647347) | (296024) |

---

*ii)* Changes in treasury stocks for the years ended December 31, 2025 and 2024 are as follows:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  |  |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**December 31, 2025** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**December 31, 2025** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**December 31, 2025** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**December 31, 2025** |
|  |  | **Beginning balance** | **Acquisition** | **Disposal** | **Retirement (\*)** | **Ending balance** |
| &nbsp;&nbsp;&nbsp;&nbsp;The number of <br>shares |  | 4585561  | &nbsp;&nbsp;&nbsp;&nbsp;21702365 | - | (17950391) | &nbsp;&nbsp;&nbsp;&nbsp;8337535 |
| Carrying amount | W | 250000  | 1250001 | - | (900000) | 600001 |

---

(\*) For the year ended December 31, 2025, the Company acquired treasury stocks for retirement and completed the retirement of 7,603,260 shares and 10,347,131 shares on April 29, 2025 and June 26, 2025, respectively.

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  |  |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**December 31, 2024** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**December 31, 2024** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**December 31, 2024** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**December 31, 2024** |
|  |  | **Beginning balance** | **Acquisition** | **Disposal** | **Retirement** (\*) | **Ending balance** |
| &nbsp;&nbsp;&nbsp;&nbsp;The number of <br>shares |  | 6352 | 13899708 | (6353) | (9314146) | 4585561 |
| Carrying amount | W | 227 | 700300 | (227) | (450300) | 250000 |

---

(\*) For the year ended December 31, 2024, the Company acquired treasury stocks for retirement and completed the retirement of 3,366,257 shares and 5,947,889 shares on March 22, 2024 and November 1, 2024, respectively.

(e) Changes in accumulated other comprehensive loss for years ended December 31, 2025 and 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  |  | **December 31, 2025** | **December 31, 2024** |
| &nbsp;&nbsp;Beginning balance | W | (9307) | (6642) |
| &nbsp;&nbsp;Remeasurement of the defined benefit assets |  | (3028) | (3621) |
| &nbsp;&nbsp;Tax effect |  | 972 | 956 |
| &nbsp;&nbsp;Ending balance | W | (11363) | (9307) |

---

------

SHINHAN FINANCIAL GROUP CO., LTD.

**Notes to the Separate Financial Statements**

December 31, 2025 and 2024

(In millions of won, except per share data)

**<u>18. Equity (continued)</u>**

(f) Regulatory reserve for loan losses

In accordance with Supervisory Regulations on Financial Holding Companies (the "Regulations"), the Company reserves the difference between allowance for credit losses under K-IFRS and that as required by the Regulations at the account of regulatory reserve for loan losses.

*i)* Changes in regulatory reserve for loan losses for the years ended December 31, 2025 and 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  |  | **December 31, 2025** | **December 31, 2024** |
| Beginning balance | W | 20462 | 20656  |
| Planned reversal of regulatory reserve for loan losses |  | (2754) | (194) |
| Ending balance | W | 17708 | 20462  |

---

*ii)* Profit for the period and earnings per share after adjusted for regulatory reserve for loan losses for the years ended December 31, 2025 and 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  |  | **December 31, 2025** | **December 31, 2024** |
| Profit for the period | W | 2385457 | 1619867 |
| Provision for regulatory reserve for loan losses |  | 2754 | 194  |
| &nbsp;&nbsp;&nbsp;&nbsp;Profit for the period adjusted for regulatory reserve | W | 2388211 | 1620061 |
| &nbsp;&nbsp;Basic and diluted earnings per share in won factoring in regulatory reserve (\*) | W | 4503 | 2851 |

---

(\*) Dividends for hybrid bonds are deducted.

------

SHINHAN FINANCIAL GROUP CO., LTD.

**Notes to the Separate Financial Statements**

December 31, 2025 and 2024

(In millions of won, except per share data)

**<u>18. Equity (continued)</u>**

(g*)* Appropriation of retained earnings

The appropriation of retained earnings for the years ended December 31, 2025 and 2024, is as follows:

---

| | | | |
|:---|:---|:---|:---|
|  |  | **December 31, 2025** | **December 31, 2024** |
|  |  | **Date of Disposal (Expected):**<br> **March 26, 2026** | **Date of Disposal (Confirmed):** <br>**March 26, 2025** |
| &nbsp;&nbsp;**Unappropriated retained earnings:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Balance at beginning of year | W | 4472618 | 4672650 |
| &nbsp;&nbsp;&nbsp;&nbsp;Retirement for treasury stock |  | (900070) | (450402) |
| &nbsp;&nbsp;&nbsp;&nbsp;Dividend on hybrid bonds |  | (197932) | (176945) |
| &nbsp;&nbsp;&nbsp;&nbsp;Interim dividends |  | (828228) | (820287) |
| &nbsp;&nbsp;&nbsp;&nbsp;Profit for the year |  | 2385457 | 1619867 |
|  |  | 4931845 | 4844883 |
| &nbsp;&nbsp; <br>**Transfer from voluntary reserves** | W | 2754 | 194 |
|  |  | 4934599 | 4845077 |
| &nbsp;&nbsp;**Appropriation of retained earnings:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Legal reserve |  | - | 104180 |
| &nbsp;&nbsp;&nbsp;&nbsp;Dividends |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Dividends on ordinary shares |  | 417502 | 267755 |
| &nbsp;&nbsp;&nbsp;&nbsp;Loss on redemption of hybrid bonds  |  | 1846 | 524 |
|  |  | 419348 | 372459 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Unappropriated retained earnings**<br>**to be carried over to subsequent year** | W | 4515251 | 4472618 |

---

------

SHINHAN FINANCIAL GROUP CO., LTD.

**Notes to the Separate Financial Statements**

December 31, 2025 and 2024

(In millions of won, except per share data)

**<u>19. Dividends</u>**

(a) Details of dividends recognized as distributions to shareholders for the years ended December 31, 2025 and 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**December 31, 2025** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**December 31, 2024** |
| **Ordinary shares:** |  |  |  |
| &nbsp;&nbsp;&nbsp;Total number of shares issued and outstanding  |  | 485494934 | 503445325  |
| &nbsp;&nbsp;&nbsp;Par value per share in won |  | 5000 | 5000  |
| &nbsp;&nbsp;&nbsp;Dividend per share in won (\*3) |  | 880 | 540  |
| &nbsp;&nbsp;&nbsp;Dividends (\*1), (\*2) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;W | 417502 | 267755 |
| &nbsp;&nbsp;&nbsp;Dividend rate per share (\*3)  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;% | 17.6 | 10.8 |
| &nbsp;&nbsp;&nbsp;Record date (\*4) |  | 2026-02-20 | 2025-02-21 |

---

(\*1) The (proposed) dividend is scheduled to be resolved on March 26, 2026, and therefore has not been recognized as a distribution to owners for the period.

(\*2) Dividends on common shares, excluding treasury shares, as 2,723,039 treasury shares acquired between the end of the reporting period and the dividend record date have been excluded.

(\*3) The amounts exclude interim dividends. Including interim dividends, dividends per share for the current and prior periods would amount to W 2,590 and W 2,160, respectively, and the corresponding dividend rates per share would be 51.8% and 43.2%, respectively.

(\*4) The Articles of Incorporation were amended at the regular general meeting of shareholders held on March 23, 2023, to allow the Board of Directors to determine the dividend record date by resolution. Accordingly, the record date for the 2025 annual dividend is February 20, 2026.

(b) The interim dividends paid for the years ended December 31, 2025 and 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
| **Dividend base date** |  |  | **Amount** |
| &nbsp;&nbsp;On May 2, 2025(Q1) | Ordinary shares (W 570 per share) | W | 278,127 |
| &nbsp;&nbsp;On August 1, 2025(Q2) | Ordinary shares (W 570 per share) | W | 276,732 |
| &nbsp;&nbsp;On November 4, 2025(Q3) | Ordinary shares (W 570 per share) | W | 273,369 |
|  |  |  | 828,228 |

---

---

| | | | |
|:---|:---|:---|:---|
| **Dividend base date** |  |  | **Amount** |
| &nbsp;&nbsp;On March 31, 2024(Q1) | Ordinary shares (W 540 per share) | W | 275069 |
| &nbsp;&nbsp;On June 30, 2024(Q2) | Ordinary shares (W 540 per share) | W | 273358 |
| &nbsp;&nbsp;On September 30, 2024(Q3) | Ordinary shares (W 540 per share) | W | 271860 |
|  |  |  | 820287 |

---

------

SHINHAN FINANCIAL GROUP CO., LTD.

**Notes to the Separate Financial Statements**

December 31, 2025 and 2024

(In millions of won, except per share data)

**<u>19. Dividends (continued)</u>**

(c) Dividends for hybrid bonds for the years ended December 31, 2025 and 2024 are calculated as follows:

---

| | | | |
|:---|:---|:---|:---|
|  |  | **December 31, 2025** | **December 31, 2024** |
| Amount of hybrid bond | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;W | 4764550 | 4614550  |
| Interest rate |  | 2.88% ~ 5.40% | 2.88% ~ 5.40% |
| Dividend to hybrid bonds | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;W | 197932 | 176945 |

---

**<u>20. Net interest expense</u>**

Net interest expense for the years ended December 31, 2025 and 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  |  | **December 31, 2025** | **December 31, 2024** |
| Interest income: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash and due from banks at amortized cost | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;W | 5561 | 3122  |
| &nbsp;&nbsp;&nbsp;&nbsp;Loans at amortized cost |  | 83158 | 94766  |
| &nbsp;&nbsp;&nbsp;&nbsp;Others |  | 612 | 882  |
|  |  | 89331 | 98770  |
| Interest expense: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Borrowings |  | (451) | (3443) |
| &nbsp;&nbsp;&nbsp;&nbsp;Debt securities issued |  | (335269) | (331292) |
| &nbsp;&nbsp;&nbsp;&nbsp;Others |  | (33) | (63) |
|  |  | (335753) | (334798) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net interest expense | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;W | (246422) | (236028) |

---

------

SHINHAN FINANCIAL GROUP CO., LTD.

**Notes to the Separate Financial Statements**

December 31, 2025 and 2024

(In millions of won, except per share data)

**<u>21. Net fees and commission income</u>**

Net fees and commission income for the years ended December 31, 2025 and 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  |  | **December 31, 2025** | **December 31, 2024** |
| Fees and commission income: |  |  |  |
| &nbsp;&nbsp;&nbsp;Royalty | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;W | 71037 | 71038  |
| &nbsp;&nbsp;&nbsp;Others |  | 1 | 15  |
|  |  | 71038 | 71053 |
| Fees and commission expense: |  |  |  |
| &nbsp;&nbsp;&nbsp;Others |  | (810) | (617) |
| Net fees and commission income | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;W | 70228 | 70436 |

---

**<u>22. Dividend income</u>**

Dividend income for the years ended December 31, 2025 and 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  |  | **December 31, 2025** | **December 31, 2024** |
| Dividend from subsidiaries | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;W | 2565457 | 1971428 |
| Dividend to hybrid bonds |  | 58655 | 54528 |
|  |  | 2624112 | 2025956 |

---

**<u>23. Reversal of credit loss allowance</u>**

Reversal of credit loss allowance for the years ended December 31, 2025 and 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  |  | **December 31, 2025** | **December 31, 2024** |
| Reversal of credit loss allowance | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;W | 266 | 215 |

---

**<u>24. Gain and loss on financial instruments at fair value through profit or loss</u>** 

Gain and loss on financial instruments at FVTPL for the years ended December 31, 2025 and 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  |  | **December 31, 2025** | **December 31, 2024** |
| **Beneficiary certificates** |  |  |  |
| &nbsp;&nbsp;Gain on valuation of beneficiary certificates | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;W | 11138  | 1127  |
| &nbsp;&nbsp;Gain on sale of beneficiary certificates |  | 42625  | 49817  |
|  |  | 53763  | 50944  |
| **Hybrid bonds** |  |  |  |
| &nbsp;&nbsp;Gain on valuation of hybrid bonds |  | 17820  | 38300 |
| &nbsp;&nbsp;Gain on sale of hybrid bonds |  | 376  | - |
|  |  | 18196  | 38300 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;W | 71959  | 89244 |

---

------

SHINHAN FINANCIAL GROUP CO., LTD.

**Notes to the Separate Financial Statements**

December 31, 2025 and 2024

(In millions of won, except per share data)

**<u>25. General and administrative expenses</u>**

General and administrative expenses for the years ended December 31, 2025 and 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  |  | **December 31, 2025** | **December 31, 2024** |
| Salaries: |  |  |  |
| &nbsp;&nbsp;&nbsp;Salary expenses and bonuses | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;W | 56013 | 45979  |
| &nbsp;&nbsp;&nbsp;Severance benefits |  | 1846 | 1414  |
| Rent |  | 1994 | 1854  |
| Lease |  | 1089 | 575  |
| Entertainment |  | 1911 | 1898  |
| Depreciation |  | 3324 | 4506  |
| Amortization |  | 1126 | 631  |
| Taxes and dues |  | 897 | 802  |
| Advertising |  | 60008 | 61354  |
| Others |  | 27328 | 27819  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;W | 155536 | 146832  |

---

**<u>26. Share-based payments</u>**

(a) Performance shares granted as of December 31, 2025 are as follows:

---

| | | |
|:---|:---|:---|
|  | **Expired** | **Not expired** |
| Type | Cash-settled share-based payment | Cash-settled share-based payment |
| Performance conditions  | Relative stock price linked (20.0%), management index (80.0%) | Relative stock price linked (20.0%), management index (80.0%) |
| Exercising period | 4 years from the commencement date of the year to which the grant date belongs | 4 years from the commencement date of the year to which the grant date belongs |
| Estimated number of shares vested at December 31, 2025 | 880880 | 2069238 |
| Fair value per share in Korean won (\*) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;W 37,387, W 37,081, W 38,156, W 50,444, W 77,757 for the expiration of exercising period from 2021 to 2025 | W 76,900 |

---

(\*) Based on performance-based stock compensation, the reference stock price (the arithmetic average of the weighted average share price of transaction volume for the past two month, the previous one month, and the past one week) of four years after the commencement of the grant year is paid in cash, and the fair value of the reference stock to be paid in the future is assessed as the closing price of the settlement.

------

SHINHAN FINANCIAL GROUP CO., LTD.

**Notes to the Separate Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**<u>26. Share-based payments (continued)</u>**

(b) Share-based compensation costs

Based on the share-based payment arrangements held by the Company, the share-based compensation costs for the years ended December 31, 2025 and 2024 are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  |  | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** |
|  |  | **Employees of** | **Employees of** |  |
|  |  | **Shinhan**<br>**Financial**<br>**Group** | **Subsidiaries** | **Total** |
| Performance shares  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;W | 10979 | 95163 | 106142 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  |  | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
|  |  | **Employees of** | **Employees of** |  |
|  |  | **Shinhan**<br>**Financial**<br>**Group** | **Subsidiaries** | **Total** |
| Performance shares  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;W | 4950 | 41686  | 46636 |

---

(c) Share-based compensation payable

In accordance with the share-based compensation agreements by the Company, the share-based compensation payable as of December 31, 2025 and 2024 is as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  |  | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** |
|  |  | **Accrued expense** | **Accrued expense** |  |
|  |  | **Shinhan**<br>**Financial**<br>**Group** | **Subsidiaries (\*)** | **Total** |
| Performance shares  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;W | 22537 | 197518 | 220055 |

---

(\*) The Company recognizes W 197,518 million to be preserved from the subsidiary as the amount to be paid to the executives and employees of the subsidiary.

---

| | | | | |
|:---|:---|:---|:---|:---|
|  |  | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
|  |  | **Accrued expense** | **Accrued expense** |  |
|  |  | **Shinhan**<br>**Financial**<br>**Group** | **Subsidiaries (\*)** | **Total** |
| Performance shares  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;W | 16396 | 135356 | 151752 |

---

(\*) The Company recognizes W 135,356 million to be preserved from the subsidiary as the amount to be paid to the executives and employees of the subsidiary.

------

SHINHAN FINANCIAL GROUP CO., LTD.

**Notes to the Separate Financial Statements**

December 31, 2025 and 2024

(In millions of won)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**<u>27. Non-operating income and expense</u>**

Non-operating income and expense for the years ended December 31, 2025 and 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  |  | **December 31, 2025** | **December 31, 2024** |
| Non-operating income: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Gain on termination of right-of-use assets | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;W | 12  | 4  |
| &nbsp;&nbsp;&nbsp;&nbsp;Others |  | 1327  | 1023  |
|  |  | 1339  | 1027  |
| Non-operating expense: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Loss on termination of right-of-use assets |  | (3) | (82) |
| &nbsp;&nbsp;&nbsp;&nbsp;Donations and contributions |  | (2742) | (2404) |
| &nbsp;&nbsp;&nbsp;&nbsp;Impairment loss of investments in subsidiaries |  | - | (165659) |
| &nbsp;&nbsp;&nbsp;&nbsp;Loss on disposal of investments in subsidiaries |  | - | (1930) |
| &nbsp;&nbsp;&nbsp;&nbsp;Loss on redemption of debt securities issued |  | (2273) | - |
| &nbsp;&nbsp;&nbsp;&nbsp;Others |  | (109) | (63) |
|  |  | (5127) | (170138) |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;W | (3788) | (169111) |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**<u>28. Operating income</u>**

Operating income for the years ended December 31, 2025 and 2024 are as follows.

---

| | | | |
|:---|:---|:---|:---|
|  |  | **December 31, 2025** | **December 31, 2024** |
| Dividend income | W | 2624112 | 2025956  |
| Fees and commission income |  | 71038 | 71053  |
| Interest income |  | 89331 | 98770  |
| Gains on financial instruments at FVTPL |  | 81491 | 89244  |
| Gains on foreign currency transaction  |  | 90736 | 271265  |
| Reversal of credit loss allowance |  | 266 | 215  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;W | 2956974 | 2556503  |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**<u>29. Income taxes</u>**

(a)Income tax expense for the years ended December 31, 2025 and 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  |  | **December 31, 2025** | **December 31, 2024** |
| Current income tax expense | W | 1005 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;Change in deferred tax assets and liabilities due to temporary differences (\*) |  | (26906) | 10929 |
| &nbsp;&nbsp;Income tax recognized directly in equity (\*) |  | 972 | 956 |
| Income tax expense (benefit) | W | (24929) | 11885 |

---

(\*) Following the tax law amendments at the end of 2025, deferred tax assets (liabilities) expected to be realized after 2026 have been measured using the revised tax rates.

------

SHINHAN FINANCIAL GROUP CO., LTD.

**Notes to the Separate Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**<u>29. Income taxes (continued)</u>**

(b) The reconciliation between income tax expense and accounting profit for the years ended December 31, 2025 and 2024 is as follows.

---

| | | | |
|:---|:---|:---|:---|
|  |  | **December 31, 2025** | **December 31, 2024** |
| Profit before income taxes | W | 2360528  | 1631752  |
| Income taxes at statutory tax rates |  | 623179  | 430782  |
| Adjustments: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Non-taxable income  |  | (589765) | (438292) |
| &nbsp;&nbsp;&nbsp;&nbsp;Non-deductible expense |  | 610  | 1152  |
| &nbsp;&nbsp;&nbsp;&nbsp;Others (\*) |  | (58953) | 18243 |
| &nbsp;&nbsp;Income tax expense | W | (24929) | 11885  |
| &nbsp;&nbsp;Effective income tax rate | % | (1.06) | 0.73 |

---

(\*) The effect of the remeasurement of deferred tax due to changes in tax rates during the current period is not material and has been included in the movement in deferred tax.

(c) The changes in deferred tax liabilities arising from temporary differences for the years ended December 31, 2025 and 2024 are as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  |  | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** |
|  |  | &nbsp;&nbsp;&nbsp;&nbsp;**Beginning**<br>**balance** | **Net income effect** | **Other comprehensive income effect** | **Ending**<br>**Balance (\*)** |
| Financial assets at FVTPL | W | 341 | (7710) | - | (7369) |
| Net gain on foreign currency conversion |  | (25765) | 31702  | - | 5937  |
| Allowances  |  | 427  | (87) | - | 340  |
| Defined benefit obligation |  | 6308  | 160  | 815  | 7283  |
| Plan assets |  | (7792) | (432) | 157  | (8067) |
| Accrued expenses |  | 5745  | 2030  | - | 7775  |
| Lease assets |  | (199) | (11) | - | (210) |
| Lease liabilities |  | 223  | 12  | - | 235  |
| Others |  | 194  | 270  | - | 464  |
|  | W | (20518) | 25934  | 972  | 6388  |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  |  | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
|  |  | &nbsp;&nbsp;&nbsp;&nbsp;**Beginning**<br>**balance** | **Net income effect** | **Other comprehensive income effect** | **Ending**<br>**Balance (\*)** |
| Financial assets at FVTPL | W | 10848  | (10507) | - | 341  |
| Net gain on foreign currency conversion |  | (26549) | 784  | - | (25765) |
| Allowances  |  | 504  | (77) | - | 427  |
| Defined benefit obligation |  | 5208  | 270  | 830  | 6308  |
| Plan assets |  | (6840) | (1078) | 126  | (7792) |
| Accrued expenses |  | 5117  | 628  | - | 5745  |
| Lease assets |  | (480) | 281  | - | (199) |
| Lease liabilities |  | 510  | (287) | - | 223  |
| Others |  | 2093  | (1899) | - | 194  |
|  | W | (9589) | (11885) | 956  | (20518) |

---

------

SHINHAN FINANCIAL GROUP CO., LTD.

**Notes to the Separate Financial Statements**

December 31, 2025 and 2024

(In millions of won)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**<u>29. Income taxes (continued)</u>**

(d) The amounts of deductible temporary differences that are not recognized as deferred tax assets as of December 31, 2025 and 2024 are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  |  |  | **December 31, 2025** | **December 31, 2024** |
| &nbsp;&nbsp;Investment in subsidiary related (\*) | &nbsp;&nbsp;Taxable temporary differences | W | (7248127) | (7248127) |
|  | &nbsp;&nbsp;Deductible temporary differences |  | 332650  | 332650  |
| &nbsp;&nbsp;Other accumulated temporary differences | &nbsp;&nbsp;Other accumulated temporary differences |  | 80 | 59 |

---

(\*) Deferred tax assets were not recognized due to the Company controls the timing of the disappearance of temporary differences, and temporary differences are unlikely to be extinguished in the foreseeable future.

(e) As of December 31, 2025, there are no tax losses and tax credits carryforwards that are not recognized as deferred tax assets.

(f) The Company offsets deferred tax assets against deferred tax liabilities of the same taxable entity if, and only if, they relate to income taxes levied by the same taxation authority and the entity has a legally enforceable right and intention to set off current tax assets against current tax liabilities; in such cases, the amounts are presented on a net basis in the statement of financial position.

(g) Deferred tax assets and liabilities presented on a gross basis prior to any offsetting as of December 31, 2025 and 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  |  | **December 31, 2025** | **December 31, 2024** |
| Deferred tax assets | W | 22034 | 13238 |
| &nbsp;&nbsp;Deferred tax liabilities |  | (15646) | (33756) |

---

(h) Under the Global Minimum Corporate Tax Act, the Company is required to pay additional taxes on the difference between the effective tax rate and the minimum tax rate of 15% for each jurisdiction in which its constituent entities operate. The Company has assessed the impact of the Global Minimum Corporate Tax Act in accordance with the relevant legislation and determined that most constituent entities are either eligible for transitional safe harbor relief or subject to effective tax rates exceeding 15%. As a result, no significant additional tax is expected to arise in respect of those entities. However, additional tax has arisen in relation to a subsidiary located in Mexico due to the application of the Global Minimum Tax. Accordingly, the Company's current income tax expense includes current income tax expense of W 936 million related thereto.

The current income tax expense related to the Global Minimum Tax is subject to estimation uncertainty, as it may change due to various factors, including tax incentives granted to permanent establishments and accounting adjustments required under the relevant legislation for the calculation of Global Minimum Tax income in subsequent periods. Furthermore, the Company has applied the temporary exception to deferred tax accounting under K-IFRS No. 1012 and, accordingly, has not recognized deferred tax assets and liabilities related to Pillar Two legislation and has not disclosed information related thereto.

------

SHINHAN FINANCIAL GROUP CO., LTD.

**Notes to the Separate Financial Statements**

December 31, 2025 and 2024

(In millions of won, except per share data)

**<u>30. Earnings per share</u>**

(a) Basic and diluted earnings per share for the years ended December 31, 2025 and 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  |  | **December 31, 2025** | **December 31, 2024** |
| Net profit for the year | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;W | 2385457 | 1619867  |
| Less:  |  |  |  |
| &nbsp;&nbsp;&nbsp;Dividends to hybrid bond |  | (197932) | (176945) |
| &nbsp;&nbsp;Profit attributable to ordinary shareholders |  | 2187525 | 1442922 |
| &nbsp;&nbsp;Weighted average number of common shares outstanding (\*1), (\*2) |  | 486484485 | 506231595  |
| &nbsp;&nbsp;Basic and diluted earnings per share in won | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;W | 4497 | 2850 |

---

(\*1) The number of common shares issued by the Company is 485,494,934 shares as of the end of the current period.

The weighted average number of outstanding common shares above was calculated to reflect changes resulting from treasury shares that were acquired and subsequently retired during the current and prior periods.

(\*2) The redeemable convertible preferred shares previously issued by the Company were fully redeemed with profits during the prior period. As a result, while preferred share capital remains, there are no outstanding preferred shares as of the end of the period.

(b) The calculation details of the weighted average number of ordinary shares are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **December 31, 2025** | **December 31, 2025** | **December 31, 2024** | **December 31, 2024** |
|  | **Number of shares** | **Accumulated number of shares** | **Number of shares** | **Accumulated** <br>**number of shares** |
| Number of common shares issued | 485494934 | 179923930646 | 503445325  | 186347761912  |
| Number of treasury shares | (8337535) | (2357093621) | (4585561) | (1066997991) |
| Average number of ordinary shares | 477157399  | 177566837025  | 498859764  | 185280763921  |
| Days |  | 365 days |  | 366 days |
| &nbsp;&nbsp;Weighted average number of ordinary shares |  | 486484485 |  | <br>506231595 |

---

**<u>31. Commitments and contingencies</u>**

(a) Commitments

The Commitments with financial institutions for the years ended December 31, 2025 and 2024 are as follows:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  |  |  | &nbsp;&nbsp;**December 31, 2025** | &nbsp;&nbsp;**December 31, 2025** | **December 31, 2024** | **December 31, 2024** |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Financial institutions |  | **Borrowing Limit** | **Balance after Execution** | **Borrowing Limit** | **Balance after Execution** |
| &nbsp;&nbsp;Borrowing agreement <br>in Korean won | &nbsp;&nbsp;Korea Development Bank | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;W | 100000  | - | 100000  | - |
| &nbsp;&nbsp;Borrowing agreement <br>in Korean won | &nbsp;&nbsp;Kookmin Bank |  | 200000  | - | 200000  | - |
| &nbsp;&nbsp;Borrowing agreement <br>in Korean won | &nbsp;&nbsp;Hana Bank |  | 200000  | - | 200000  | - |
|  |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;W | 500000  | - | 500000  | -  |

---

------

SHINHAN FINANCIAL GROUP CO., LTD.

**Notes to the Separate Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**<u>32. Statement of cash flows</u>**

(a) Cash and cash equivalents as of December 31, 2025 and 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  |  | **December 31, 2025** | **December 31, 2024** |
| &nbsp;&nbsp;&nbsp;&nbsp;Due from financial institutions with a maturity less <br>than three months from date of acquisition | W | 2,587 | 151,203 |

---

(b) Significant non-cash activities for the years ended December 31, 2025 and 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  |  | **December 31, 2025** | **December 31, 2024** |
| &nbsp;&nbsp;&nbsp;Share-based payments granted to the employees of subsidiaries | W | 62162 | 24299 |
| &nbsp;&nbsp;&nbsp;Income tax receivable offset by income tax payable due to consolidated corporate income tax filing |  | 674741 | 307767 |
| &nbsp;&nbsp;&nbsp;Transaction for right-of-use assets |  | (1357) | (948) |

---

(c) Changes in liabilities arising from financing activities for the years ended December 31, 2025 and 2024 are as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  |  | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** |
|  |  | **Borrowings** | **Debentures** | **Lease liabilities (\*)** | **Total** |
| &nbsp;&nbsp;Beginning balance | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;W | 19914  | 10731336  | 843  | 10752093  |
| &nbsp;&nbsp;&nbsp;&nbsp;Changes from cash flows |  | (10300) | (276776) | (731) | (287807) |
| &nbsp;&nbsp;&nbsp;&nbsp;Changes from non-cash flows: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Amortization of discount on debentures |  | 361  | 6522  | 33  | 6916  |
| &nbsp;&nbsp;&nbsp;Foreign currency difference |  | - | (6150) | - | (6150) |
| Other changes |  | - | 2273  | 710  | 2983  |
| &nbsp;&nbsp;Ending balance | W | 9975  | 10457205  | 855  | 10468035  |

---

(\*) Cash outflows due to small lease fees and short-term lease fees not recognized as lease liabilities are W 48 million and W 985 million, respectively.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  |  | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
|  |  | **Borrowings** | **Debentures** | **Lease liabilities (\*)** | **Total** |
| &nbsp;&nbsp;Beginning balance | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;W | 223722  | 10389276  | 1933  | 10614931  |
| &nbsp;&nbsp;&nbsp;&nbsp;Changes from cash flows |  | (205684) | 66934  | (1619) | (140369) |
| &nbsp;&nbsp;&nbsp;&nbsp;Changes from non-cash flows: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Amortization of discount on debentures |  | 1876 | 5199  | 63  | 7138  |
| &nbsp;&nbsp;&nbsp;Foreign currency difference |  | - | 269927  | - | 269927  |
| Other changes |  | - | - | 466  | 466  |
| &nbsp;&nbsp;Ending balance | W | 19914 | 10731336 | 843 | 10752093 |

---

(\*) Cash outflows due to small lease fees and short-term lease fees not recognized as lease liabilities are W 50 million and W 407 million, respectively.

------

SHINHAN FINANCIAL GROUP CO., LTD.

**Notes to the Separate Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**<u>33. Related party transactions</u>**

The Company defines subsidiaries, key managements, and their families as a range of the related parties in accordance with K-IFRS No. 1024 and discloses the amount of transactions between the Company and related parties and the balance of receivables and payables. For details of subsidiaries, refer to 'Note 12'.

(a) Significant transactions with the related parties for the years ended December 31, 2025 and 2024 are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| &nbsp;&nbsp;**Related party** | &nbsp;&nbsp;**Account** |  | &nbsp;&nbsp;**December 31,** <br>**2025** | &nbsp;&nbsp;**December 31,** <br>**2024** |
| &nbsp;&nbsp;***Revenue:*** |  |  |  |  |
| &nbsp;&nbsp;Shinhan Bank | &nbsp;&nbsp;Interest income | &nbsp;&nbsp;W | &nbsp;&nbsp;613  | &nbsp;&nbsp;424  |
| &nbsp;&nbsp;〃 | &nbsp;&nbsp;&nbsp;&nbsp;Fees and commission income |  | &nbsp;&nbsp;46442  | &nbsp;&nbsp;46442  |
| &nbsp;&nbsp;〃 | &nbsp;&nbsp;&nbsp;Dividend income |  | &nbsp;&nbsp;1662952  | &nbsp;&nbsp;1196396  |
| &nbsp;&nbsp;Shinhan Card Co., Ltd. | &nbsp;&nbsp;Interest income |  | &nbsp;&nbsp;35501  | &nbsp;&nbsp;52528  |
| &nbsp;&nbsp;〃 | &nbsp;&nbsp;&nbsp;&nbsp;Fees and commission income |  | &nbsp;&nbsp;13340  | &nbsp;&nbsp;13340  |
| &nbsp;&nbsp;〃 | &nbsp;&nbsp;Dividend income |  | &nbsp;&nbsp;317977  | &nbsp;&nbsp;342306  |
| &nbsp;&nbsp;〃 | &nbsp;&nbsp;Reversal of credit losses |  | &nbsp;&nbsp;196  | &nbsp;&nbsp;283  |
| &nbsp;&nbsp;Shinhan Securities Co., Ltd. | &nbsp;&nbsp;Interest income |  | &nbsp;&nbsp;27311  | &nbsp;&nbsp;21186  |
| &nbsp;&nbsp;〃 | &nbsp;&nbsp;&nbsp;&nbsp;Fees and commission income |  | &nbsp;&nbsp;3524  | &nbsp;&nbsp;3524  |
| &nbsp;&nbsp;〃 | &nbsp;&nbsp;&nbsp;&nbsp;Dividend income |  | &nbsp;&nbsp;100813  | &nbsp;&nbsp;51144  |
| &nbsp;&nbsp;〃 | &nbsp;&nbsp;&nbsp;&nbsp;Reversal of credit losses |  | &nbsp;&nbsp;55  | &nbsp;&nbsp;- |
| &nbsp;&nbsp;Shinhan Life Insurance Co., Ltd. | &nbsp;&nbsp;&nbsp;&nbsp;Fees and commission income |  | &nbsp;&nbsp;4879  | &nbsp;&nbsp;4879  |
| &nbsp;&nbsp;〃 | &nbsp;&nbsp;Dividend income |  | &nbsp;&nbsp;378307  | &nbsp;&nbsp;315343  |
| &nbsp;&nbsp;Shinhan Capital Co., Ltd. | &nbsp;&nbsp;Interest income |  | &nbsp;&nbsp;12587  | &nbsp;&nbsp;13184  |
| &nbsp;&nbsp;〃 | &nbsp;&nbsp;&nbsp;&nbsp;Fees and commission income |  | &nbsp;&nbsp;1994  | &nbsp;&nbsp;1994  |
| &nbsp;&nbsp;〃 | &nbsp;&nbsp;Dividend income |  | &nbsp;&nbsp;38017  | &nbsp;&nbsp;84655  |
| &nbsp;&nbsp;〃 | &nbsp;&nbsp;Reversal of credit losses |  | &nbsp;&nbsp;82  | &nbsp;&nbsp;63  |
| &nbsp;&nbsp;Jeju Bank | &nbsp;&nbsp;&nbsp;&nbsp;Fees and commission income |  | &nbsp;&nbsp;40  | &nbsp;&nbsp;40  |
| &nbsp;&nbsp;〃 | &nbsp;&nbsp;&nbsp;&nbsp;Dividend income |  | &nbsp;&nbsp;2420  | &nbsp;&nbsp;2420  |
| &nbsp;&nbsp;Shinhan Asset Management Co., Ltd. | &nbsp;&nbsp;&nbsp;&nbsp;Fees and commission income |  | &nbsp;&nbsp;164  | &nbsp;&nbsp;164  |
| &nbsp;&nbsp;〃 | &nbsp;&nbsp;&nbsp;&nbsp;Dividend income |  | &nbsp;&nbsp;79200  | &nbsp;&nbsp;24400  |
| &nbsp;&nbsp;〃 | &nbsp;&nbsp;&nbsp;&nbsp;Reversal of credit losses |  | &nbsp;&nbsp;2  | &nbsp;&nbsp;- |
| &nbsp;&nbsp;Shinhan DS | &nbsp;&nbsp;&nbsp;&nbsp;Interest income |  | &nbsp;&nbsp;313  | &nbsp;&nbsp;397  |
| &nbsp;&nbsp;〃 | &nbsp;&nbsp;&nbsp;&nbsp;Fees and commission income |  | &nbsp;&nbsp;16  | &nbsp;&nbsp;21  |
| &nbsp;&nbsp;〃 | &nbsp;&nbsp;&nbsp;&nbsp;Reversal of credit losses |  | &nbsp;&nbsp;1  | &nbsp;&nbsp;4  |
| &nbsp;&nbsp;Shinhan Fund Partners | &nbsp;&nbsp;&nbsp;&nbsp;Fees and commission income |  | &nbsp;&nbsp;104  | &nbsp;&nbsp;104  |
| &nbsp;&nbsp;〃 | &nbsp;&nbsp;&nbsp;&nbsp;Dividend income |  | &nbsp;&nbsp;27670  | &nbsp;&nbsp;6083  |
| &nbsp;&nbsp;Shinhan Savings Bank | &nbsp;&nbsp;&nbsp;&nbsp;Interest income |  | &nbsp;&nbsp;2229  | &nbsp;&nbsp;2678  |
| &nbsp;&nbsp;〃 | &nbsp;&nbsp;&nbsp;&nbsp;Fees and commission income |  | &nbsp;&nbsp;323  | &nbsp;&nbsp;332  |
| &nbsp;&nbsp;〃 | &nbsp;&nbsp;&nbsp;&nbsp;Dividend income |  | &nbsp;&nbsp;10000  | &nbsp;&nbsp;- |
| &nbsp;&nbsp;〃 | &nbsp;&nbsp;&nbsp;&nbsp;Reversal of credit losses |  | &nbsp;&nbsp;21  | &nbsp;&nbsp;4  |
| &nbsp;&nbsp;Shinhan REITs Management Co., Ltd. | &nbsp;&nbsp;&nbsp;&nbsp;Fees and commission income |  | &nbsp;&nbsp;75  | &nbsp;&nbsp;75  |
| &nbsp;&nbsp;〃 | &nbsp;&nbsp;&nbsp;&nbsp;Reversal of credit losses |  | &nbsp;&nbsp;1  | &nbsp;&nbsp;- |
| &nbsp;&nbsp;Shinhan Asset Trust Co., Ltd. | &nbsp;&nbsp;&nbsp;&nbsp;Interest income |  | &nbsp;&nbsp;3761  | &nbsp;&nbsp;2894  |
| &nbsp;&nbsp;〃 | &nbsp;&nbsp;&nbsp;&nbsp;Fees and commission income |  | &nbsp;&nbsp;96  | &nbsp;&nbsp;96  |
| &nbsp;&nbsp;〃 | &nbsp;&nbsp;&nbsp;&nbsp;Dividend income |  | &nbsp;&nbsp;6757  | &nbsp;&nbsp;3210  |
| &nbsp;&nbsp;Shinhan Venture Investment Co., Ltd. | &nbsp;&nbsp;&nbsp;&nbsp;Interest income |  | &nbsp;&nbsp;1885  | &nbsp;&nbsp;2364  |
| &nbsp;&nbsp;〃 | &nbsp;&nbsp;&nbsp;&nbsp;Fees and commission income |  | &nbsp;&nbsp;41  | &nbsp;&nbsp;41  |
| &nbsp;&nbsp;〃 | &nbsp;&nbsp;&nbsp;&nbsp;Reversal of credit losses |  | &nbsp;&nbsp;1  | &nbsp;&nbsp;3  |
|  |  | &nbsp;&nbsp;W | &nbsp;&nbsp;2779710  | &nbsp;&nbsp;2193021 |

---

------

SHINHAN FINANCIAL GROUP CO., LTD.

**Notes to the Separate Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**<u>33. Related party transactions (continued)</u>**

(a) Significant transactions with the related parties for the years ended December 31, 2025 and 2024 are as follows (continued):

---

| | | | | |
|:---|:---|:---|:---|:---|
| &nbsp;&nbsp;**Related party** | &nbsp;&nbsp;&nbsp;&nbsp;**Account** |  | &nbsp;&nbsp;**December 31,** <br>**2025** | &nbsp;&nbsp;**December 31,** <br>**2024** |
| &nbsp;&nbsp;***Expenses:*** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Shinhan Bank | &nbsp;&nbsp;&nbsp;&nbsp;Interest expenses  | &nbsp;&nbsp;&nbsp;&nbsp;W | &nbsp;&nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;&nbsp;25  |
| &nbsp;&nbsp;&nbsp;&nbsp;〃 | &nbsp;&nbsp;&nbsp;&nbsp;General and administrative expenses  |  | &nbsp;&nbsp;&nbsp;&nbsp;1302  | &nbsp;&nbsp;&nbsp;&nbsp;2098  |
| &nbsp;&nbsp;&nbsp;&nbsp;〃 | &nbsp;&nbsp;&nbsp;&nbsp;Provision for credit losses |  | &nbsp;&nbsp;&nbsp;&nbsp;148  | &nbsp;&nbsp;&nbsp;&nbsp;27  |
| &nbsp;&nbsp;&nbsp;&nbsp;Shinhan Card Co., Ltd. | &nbsp;&nbsp;&nbsp;&nbsp;Interest expenses  |  | &nbsp;&nbsp;&nbsp;&nbsp;2  | &nbsp;&nbsp;&nbsp;&nbsp;4  |
| &nbsp;&nbsp;&nbsp;&nbsp;〃 | &nbsp;&nbsp;&nbsp;&nbsp;General and administrative expenses  |  | &nbsp;&nbsp;&nbsp;&nbsp;57  | &nbsp;&nbsp;&nbsp;&nbsp;61  |
| &nbsp;&nbsp;&nbsp;&nbsp;Shinhan Securities Co., Ltd. | &nbsp;&nbsp;&nbsp;&nbsp;Interest expenses |  | &nbsp;&nbsp;&nbsp;&nbsp;179  | &nbsp;&nbsp;&nbsp;&nbsp;161  |
| &nbsp;&nbsp;&nbsp;&nbsp;〃 | &nbsp;&nbsp;&nbsp;&nbsp;Fees and commission expenses (\*) |  | &nbsp;&nbsp;&nbsp;&nbsp;150  | &nbsp;&nbsp;&nbsp;&nbsp;584  |
| &nbsp;&nbsp;&nbsp;&nbsp;〃 | &nbsp;&nbsp;&nbsp;&nbsp;General and administrative expenses |  | &nbsp;&nbsp;&nbsp;&nbsp;3  | &nbsp;&nbsp;&nbsp;&nbsp;3  |
| &nbsp;&nbsp;&nbsp;&nbsp;〃 | &nbsp;&nbsp;&nbsp;&nbsp;Provision for credit losses |  | &nbsp;&nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;&nbsp;7  |
| &nbsp;&nbsp;&nbsp;&nbsp;Shinhan Life Insurance Co., Ltd. | &nbsp;&nbsp;&nbsp;&nbsp;Interest expenses  |  | &nbsp;&nbsp;&nbsp;&nbsp;31  | &nbsp;&nbsp;&nbsp;&nbsp;875  |
| &nbsp;&nbsp;&nbsp;&nbsp;〃 | &nbsp;&nbsp;&nbsp;&nbsp;Provision for credit losses |  | &nbsp;&nbsp;&nbsp;&nbsp;7  | &nbsp;&nbsp;&nbsp;&nbsp;2  |
| &nbsp;&nbsp;&nbsp;&nbsp;Shinhan Asset Management Co., Ltd. | &nbsp;&nbsp;&nbsp;&nbsp;Provision for credit losses |  | &nbsp;&nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;&nbsp;3 |
| &nbsp;&nbsp;&nbsp;&nbsp;Shinhan DS | &nbsp;&nbsp;&nbsp;&nbsp;General and administrative expenses |  | &nbsp;&nbsp;&nbsp;&nbsp;2495  | &nbsp;&nbsp;&nbsp;&nbsp;2016  |
| &nbsp;&nbsp;&nbsp;&nbsp;Shinhan Fund Partners Co., Ltd. | &nbsp;&nbsp;&nbsp;&nbsp;Provision for credit losses |  | &nbsp;&nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;&nbsp;1 |
| &nbsp;&nbsp;&nbsp;&nbsp;Shinhan Asset Trust Co., Ltd. | &nbsp;&nbsp;&nbsp;&nbsp;Provision for credit losses |  | &nbsp;&nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;&nbsp;39  |
| &nbsp;&nbsp;&nbsp;&nbsp;Shinhan EZ General Insurance Co., Ltd. | &nbsp;&nbsp;&nbsp;&nbsp;General and administrative expenses |  | &nbsp;&nbsp;&nbsp;&nbsp;89  | &nbsp;&nbsp;&nbsp;&nbsp;79 |
|  |  | &nbsp;&nbsp;W | &nbsp;&nbsp;&nbsp;&nbsp;4463  | &nbsp;&nbsp;&nbsp;&nbsp;5985  |

---

(\*) It consists of commissions paid for acquisitions of hybrid bonds and was directly deducted from the equity.

------

SHINHAN FINANCIAL GROUP CO., LTD.

**Notes to the Separate Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**<u>33. Related party transactions (continued)</u>**

(b) Significant balances with the related parties as of December 31, 2025 and 2024 are as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Creditor** | **Debtor** | **Account** |  | **December 31,** <br>**2025** | **December 31,** <br>**2024** |
| &nbsp;&nbsp;&nbsp;***Assets:*** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Shinhan Financial Group Co., Ltd. | &nbsp;&nbsp;&nbsp;Shinhan Bank | &nbsp;&nbsp;&nbsp;Cash and due from banks | W | 17  | 12  |
| &nbsp;&nbsp;&nbsp;〃 | &nbsp;&nbsp;&nbsp;〃 | &nbsp;&nbsp;&nbsp;Other assets |  | 637533  | 270791 |
| &nbsp;&nbsp;&nbsp;〃 | &nbsp;&nbsp;&nbsp;Shinhan Card Co., Ltd. | &nbsp;&nbsp;&nbsp;Financial assets at fair value through profit or loss (\*1) |  | 713983  | 718491 |
|  | &nbsp;&nbsp;&nbsp;〃 | &nbsp;&nbsp;&nbsp;Loans |  | 1383047  | 1852100 |
| &nbsp;&nbsp;&nbsp;〃 | &nbsp;&nbsp;&nbsp;〃 | &nbsp;&nbsp;&nbsp;Reserve for loan losses |  | (574) | (774) |
| &nbsp;&nbsp;&nbsp;〃 | &nbsp;&nbsp;&nbsp;〃 | &nbsp;&nbsp;&nbsp;Property and equipment |  | 44  | 101  |
| &nbsp;&nbsp;&nbsp;〃 | &nbsp;&nbsp;&nbsp;〃 | &nbsp;&nbsp;&nbsp;Other assets |  | 115259  | 105040  |
| &nbsp;&nbsp;&nbsp;〃 | Shinhan Securities Co., Ltd. | &nbsp;&nbsp;&nbsp;Financial assets at fair value through profit or loss (\*2) |  | 383636  | 368446 |
| &nbsp;&nbsp;&nbsp;〃 | &nbsp;&nbsp;&nbsp;〃 | &nbsp;&nbsp;&nbsp;Loans |  | 703101  | 862890 |
| &nbsp;&nbsp;&nbsp;〃 | &nbsp;&nbsp;&nbsp;〃 | &nbsp;&nbsp;&nbsp;Reserve for loan losses |  | (292) | (361) |
| &nbsp;&nbsp;&nbsp;〃 | &nbsp;&nbsp;&nbsp;〃 | &nbsp;&nbsp;&nbsp;Other assets |  | 60923  | 27406 |
| &nbsp;&nbsp;&nbsp;〃 | &nbsp;&nbsp;&nbsp;Shinhan Life Insurance Co., Ltd. | &nbsp;&nbsp;&nbsp;Other assets |  | 33116  | 16704 |
| &nbsp;&nbsp;&nbsp;〃 | &nbsp;&nbsp;&nbsp;Shinhan Capital Co., Ltd. | &nbsp;&nbsp;&nbsp;Financial assets at fair value through profit or loss (\*3) |  | 247939  | 245460 |
| &nbsp;&nbsp;&nbsp;〃 | &nbsp;&nbsp;&nbsp;〃 | &nbsp;&nbsp;&nbsp;Loans |  | 596980  | 804000 |
| &nbsp;&nbsp;&nbsp;〃 | &nbsp;&nbsp;&nbsp;〃 | &nbsp;&nbsp;&nbsp;Reserve for loan losses |  | (248) | (336) |
| &nbsp;&nbsp;&nbsp;〃 | &nbsp;&nbsp;&nbsp;〃 | Other assets |  | 35563  | 20470 |
| &nbsp;&nbsp;&nbsp;〃 | &nbsp;&nbsp;&nbsp;Shinhan Asset Management Co., Ltd. | &nbsp;&nbsp;&nbsp;Other assets |  | 10430  | 15400 |
| &nbsp;&nbsp;&nbsp;〃 | &nbsp;&nbsp;&nbsp;Jeju Bank | &nbsp;&nbsp;&nbsp;Other assets |  | 3879  | 3421 |
| &nbsp;&nbsp;&nbsp;〃 | &nbsp;&nbsp;&nbsp;Shinhan DS | &nbsp;&nbsp;&nbsp;Loans |  | 9975  | 9969 |
| &nbsp;&nbsp;&nbsp;〃 | &nbsp;&nbsp;&nbsp;〃 | &nbsp;&nbsp;&nbsp;Reserve for loan losses |  | (4) | (4) |
| &nbsp;&nbsp;&nbsp;〃 | &nbsp;&nbsp;&nbsp;〃 | &nbsp;&nbsp;&nbsp;Property and equipment |  | 158  | 235  |
| &nbsp;&nbsp;&nbsp;〃 | &nbsp;&nbsp;&nbsp;〃 | &nbsp;&nbsp;&nbsp;Intangible assets |  | 126  | 112  |
| &nbsp;&nbsp;&nbsp;〃 | &nbsp;&nbsp;&nbsp;〃 | &nbsp;&nbsp;&nbsp;Other assets |  | 1965  | 3296  |
| &nbsp;&nbsp;&nbsp;〃 | &nbsp;&nbsp;&nbsp;Shinhan Fund Partners<br>Co., Ltd. | &nbsp;&nbsp;&nbsp;Other assets |  | 5141  | 4293 |

---

------

SHINHAN FINANCIAL GROUP CO., LTD.

**Notes to the Separate Financial Statements**

December 31, 2025 and 2024

(In millions of won)

**<u>33. Related party transactions (continued)</u>**

(b)Significant balances with the related parties as of December 31, 2025 and 2024 are as follows (continued):

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| &nbsp;&nbsp;&nbsp;**Creditor** | &nbsp;&nbsp;&nbsp;**Debtor** | &nbsp;&nbsp;&nbsp;**Account** |  | **December 31,** <br>**2025** | **December 31,** <br>**2024** |
| &nbsp;&nbsp;&nbsp;***Assets:*** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Shinhan Financial Group Co., Ltd. | &nbsp;&nbsp;&nbsp;Shinhan Savings Bank | &nbsp;&nbsp;&nbsp;Loans |  | 100000  | 150000  |
| &nbsp;&nbsp;&nbsp;〃 | &nbsp;&nbsp;&nbsp;〃 | &nbsp;&nbsp;&nbsp;Reserve for loan losses |  | (41) | (63) |
| &nbsp;&nbsp;&nbsp;〃 | &nbsp;&nbsp;&nbsp;〃 | &nbsp;&nbsp;&nbsp;Other assets |  | 11402  | 11826 |
| &nbsp;&nbsp;&nbsp;〃 | &nbsp;&nbsp;&nbsp;Shinhan Asset Trust <br>Co., Ltd. | &nbsp;&nbsp;&nbsp;Financial assets at fair value through profit or loss (\*4) |  | 146962  | 150725 |
| &nbsp;&nbsp;&nbsp;〃 | &nbsp;&nbsp;&nbsp;〃 | &nbsp;&nbsp;&nbsp;Loans |  | 100000  | 100000  |
| &nbsp;&nbsp;&nbsp;〃 | &nbsp;&nbsp;&nbsp;〃 | &nbsp;&nbsp;&nbsp;Reserve for loan losses |  | (41) | (42) |
| &nbsp;&nbsp;&nbsp;〃 | &nbsp;&nbsp;&nbsp;〃 | &nbsp;&nbsp;&nbsp;Other assets |  | 4291  | 3160 |
| &nbsp;&nbsp;&nbsp;〃 | &nbsp;&nbsp;&nbsp;Shinhan REITS management | &nbsp;&nbsp;&nbsp;Other assets |  | 994  | 2531 |
| &nbsp;&nbsp;&nbsp;〃 | &nbsp;&nbsp;&nbsp;Shinhan Venture Investment Co., Ltd. | &nbsp;&nbsp;&nbsp;Loans |  | 60000  | 59944 |
| &nbsp;&nbsp;&nbsp;〃 | &nbsp;&nbsp;&nbsp;〃 | &nbsp;&nbsp;&nbsp;Reserve for loan losses |  | (25) | (25) |
| &nbsp;&nbsp;&nbsp;〃 | &nbsp;&nbsp;&nbsp;〃 | &nbsp;&nbsp;&nbsp;Other assets |  | 813  | 2410 |
| &nbsp;&nbsp;&nbsp;〃 | &nbsp;&nbsp;&nbsp;Shinhan EZ General Insurance, Co., Ltd. | &nbsp;&nbsp;&nbsp;Other assets |  | 348  | 167 |
|  |  |  | W | 5366400  | 5807795 |
| &nbsp;&nbsp;&nbsp;***Liabilities:*** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Shinhan Bank. | &nbsp;&nbsp;&nbsp;Shinhan Financial Group<br>Co., Ltd. | &nbsp;&nbsp;&nbsp; <br>Other liabilities | W | 1707  | 1103 |
| &nbsp;&nbsp;&nbsp;Shinhan Card Co., Ltd. | &nbsp;&nbsp;&nbsp;〃 | &nbsp;&nbsp;&nbsp;Other liabilities  |  | 610  | 643 |
| &nbsp;&nbsp;&nbsp;Shinhan Securities <br>Co., Ltd | &nbsp;&nbsp;&nbsp;〃 | &nbsp;&nbsp;&nbsp;Other liabilities |  | 6403  | 91463 |
| &nbsp;&nbsp;&nbsp;Shinhan Life<br> Insurance Co., Ltd. | &nbsp;&nbsp;&nbsp;〃 | &nbsp;&nbsp;&nbsp;Debt security issued in won |  | - | 30000  |
| &nbsp;&nbsp;&nbsp;〃 | &nbsp;&nbsp;&nbsp;〃 | &nbsp;&nbsp;&nbsp;Other liabilities |  | 6460  | 82649 |
| &nbsp;&nbsp;&nbsp;Shinhan Capital Co., Ltd. | &nbsp;&nbsp;&nbsp;〃 | &nbsp;&nbsp;&nbsp;Other liabilities |  | 25  | 14  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shinhan Asset <br>Management Co., Ltd. |  | &nbsp;&nbsp;&nbsp;Other liabilities |  | 3  | - |
| &nbsp;&nbsp;&nbsp;Shinhan DS | &nbsp;&nbsp;&nbsp;〃 | &nbsp;&nbsp;&nbsp;Other liabilities |  | 108  | 43 |
| &nbsp;&nbsp;&nbsp;Shinhan Savings Bank | &nbsp;&nbsp;&nbsp;〃 | &nbsp;&nbsp;&nbsp;Other liabilities |  | 5  | -  |
| &nbsp;&nbsp;&nbsp;Shinhan REITs Management Co., Ltd. | &nbsp;&nbsp;&nbsp;〃 | &nbsp;&nbsp;&nbsp;Other liabilities |  | 87  | -  |
| &nbsp;&nbsp;&nbsp;Shinhan Venture <br>Investment Co., Ltd. | &nbsp;&nbsp;&nbsp;〃 | &nbsp;&nbsp;&nbsp;Other liabilities |  | 1434  | - |
|  |  |  | W | 16842  | 205915 |

---

(\*1) The amount represents the carrying amount of hybrid bonds and includes fair value losses through profit or loss of W 4,508 million and fair value gains through profit or loss of W 18,704 million recognized for the years ended December 31, 2025 and 2024, respectively.

(\*2) The amount represents the carrying amount of hybrid bonds and includes fair value gains through profit or loss of W 23,988 million and W 8,541 recognized for the years ended December 31, 2025 and 2024, respectively.

(\*3) The amount represents the carrying amount of hybrid bonds and includes fair value gains through profit or loss of W 2,103 million and W 10,330 recognized for the years ended December 31, 2025 and 2024, respectively.

(\*4) The amount represents the carrying amount of hybrid bonds and includes fair value gains through profit or loss of W 3,764 million and W 725 recognized for the years ended December 31, 2025 and 2024, respectively.

**<u>33. Related party transactions (continued)</u>**

------

SHINHAN FINANCIAL GROUP CO., LTD.

**Notes to the Separate Financial Statements**

December 31, 2025 and 2024

(In millions of won)

(c) Right-of-use assets and lease liabilities recognised through lease transactions with related parties as of December 31, 2025 and 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
| &nbsp;&nbsp;&nbsp;**Related parties** |  | **December 31, 2025** | **December 31, 2024** |
| &nbsp;&nbsp;&nbsp;**Right-of-use assets** |  |  |  |
| &nbsp;&nbsp;&nbsp; Shinhan Card Co., Ltd. |  | 44 | 101  |
|  | W | 44 | 101  |
| &nbsp;&nbsp;&nbsp;**Lease liabilities** |  |  |  |
| &nbsp;&nbsp;&nbsp; Shinhan Card Co., Ltd. |  | 49 | 109  |
|  | W | 49 | 109  |

---

(d) Financing transaction****

<br> Major financing transactions with related parties for the years ended December 31, 2025 and 2024 are as follows:

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** |
|  |  | **Beginning balance** | **Loan** | **Acquisition (\*1)** | **Collection** | **Others (\*2)** | **Ending balance** |
| Shinhan Card Co., Ltd. | W | 2570590  | 670000  | - | (1138000) | (5561) | 2097029  |
| Shinhan Securities Co., Ltd. |  | 1231335  | 676004  | - | (862890) | 42287  | 1086736  |
| Shinhan Capital Co., Ltd. |  | 1049461  | 160000  | 100000  | (460000) | (4541) | 844920  |
| Shinhan Asset Trust Co., Ltd. |  | 250725  | - | - | - | (3764) | 246961  |
| Shinhan Savings Bank  |  | 150000  | - | - | (50000) | - | 100000  |
| Shinhan DS |  | 9970  | 10000  | - | (10000) | 7  | 9977  |
| Shinhan Venture Investment Co., Ltd. |  | 59944  | 60000  | - | (60000) | 56  | 60000  |
|  | W | 5322025  | 1576004  | 100000  | (2580890) | 28484  | 4445623  |

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
|  |  | **Beginning balance** | **Loan** | **Acquisition (\*1)** | **Collection** | **Others (\*2)** | **Ending balance** |
| Shinhan Card Co., Ltd. | W | 2933452 | - | - | (460000) | 97138  | 2570590  |
| Shinhan Securities Co., Ltd. |  | 1072565 | - | - | - | 158770  | 1231335  |
| Shinhan Capital Co., Ltd. |  | 1073011 | - | - | (70000) | 46450  | 1049461  |
| Shinhan Asset Trust Co., Ltd. |  | - | 100000 | 150000 | - | 725  | 250725  |
| Shinhan Savings Bank  |  | 150000 | - | - | - | - | 150000  |
| Shinhan DS |  | 14949 | 10000 | - | (15000) | 21  | 9970  |
| Shinhan Venture Investment Co., Ltd. |  | 59528 | 70000  | - | (70000) | 416 | 59944  |
|  | W | 5303505 | 180000 | 150000  | (615000) | 303520 | 5322025 |

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(\*1) The purchase amount of hybrid bonds issued by subsidiaries.

(\*2) Other transactions are the amount due to financial asset evaluation and foreign currency conversion.

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SHINHAN FINANCIAL GROUP CO., LTD.

**Notes to the Separate Financial Statements**

December 31, 2025 and 2024

(In millions of won)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**<u>33. Related party transactions (continued)</u>**

(e) Related-party transactions

Major equity transactions with related parties for the years ended December 31, 2025 and 2024 are as follows:

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| | | | |
|:---|:---|:---|:---|
| &nbsp;&nbsp;&nbsp;**Related parties** |  | **December 31, 2025** | **December 31, 2024** |
| &nbsp;&nbsp;&nbsp;Shinhan EZ General Insurance Co., Ltd. | W | 100000 | - |
| &nbsp;&nbsp;&nbsp;Shinhan Asset Trust Co., Ltd. |  | - | 100000 |
| &nbsp;&nbsp;&nbsp;Shinhan AI Co., Ltd. (\*) |  | - | (32804) |
|  | W | 100000 | 67196 |

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(\*) The amount received during the prior period from the liquidation of Shinhan AI, a subsidiary.

(f) Management Compensation

Compensation for key management executives for the years ended December 31, 2025 and 2024 is as follows:

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| | | | |
|:---|:---|:---|:---|
|  |  | **December 31, 2025** | **December 31, 2024** |
| Short-term employee benefits | W | 4,531  | 4,676 |
| Severance benefits |  | 126  | 128  |
| Share-based payment expenses (\*) |  | 5,758  | 3,068 |
|  | W | 10,415  | 7,872 |

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(\*) Expenses recognized during the vesting period under the agreement on share-based payments.

(g) Shinhan Securities Co., Ltd., the subsidiary, acquired bonds of both W 270 billion and W 231 billion issued by the Company for the years ended December 31, 2025 and 2024, respectively.

(h) As of the December 31, 2025, the limit for credit card use provided by Shinhan Card Co., Ltd., a subsidiary company, is W 4,000 million.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**<u>34. Subsequent events</u>**

<br>To enhance shareholder value, the Company resolved to acquire and retire treasury shares totaling W 500 billion based on a resolution of the Board of Directors on February 5, 2026.

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**<u>Independent Auditors' Report on Internal Control over Financial Reporting</u>**

Based on a report originally issued in Korean

The Board of Directors and Stockholders

Shinhan Financial Group Co., Ltd.

*Opinion on Internal Control over Financial Reporting*

We have audited the internal control over financial reporting ("ICFR") of Shinhan Financial Group Co., Ltd. (the "Company") as of December 31, 2025 based on the criteria established in the Conceptual Framework for Designing and Operating ICFR ("ICFR Design and Operation Framework") issued by the Operating Committee of Internal Control over Financial Reporting in the Republic of Korea (the "ICFR Committee").

In our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2025, based on ICFR Design and Operation Framework.

We have also audited, in accordance with Korean Standards on Auditing ("KSAs"), the separate financial statements of the Company, which comprise the separate statement of financial position as of December 31, 2025, the separate statements of comprehensive income, changes in equity and cash flows for the year then ended, and notes, comprising a summary of material accounting policies and other explanatory information, and our report dated March 3, 2026 expressed an unmodified opinion on those separate financial statements.

*Basis for Opinion on Internal Control over Financial Reporting*

We conducted our audit in accordance with KSAs. Our responsibilities under those standards are further described in the Auditors' Responsibilities for the Audit of the Internal Control over Financial Reporting section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the internal control over financial reporting in the Republic of Korea, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

*Responsibilities of Management and Those Charged with Governance for the Internal Control over Financial Reporting*

The Company's management is responsible for designing, operating and maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanying 'ICFR Operating Status Report by CEO and IAM.'

Those charged with governance are responsible for overseeing the Company's internal control over financial reporting.

*Auditors' Responsibilities for the Audit of the Internal Control over Financial Reporting*

Our responsibility is to express an opinion on the Company's internal control over financial reporting based on our audit. We conducted our audit in accordance with KSAs. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects.

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Our audit of internal control over financial reporting included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk.

*Definition and Limitations of Internal Control over Financial Reporting*

A company's internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with Korean International Financial Reporting Standards ("K-IFRS"). A company's internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with K-IFRS, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company's assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

The engagement partner on the audit resulting in this independent auditors' report is Jung-Soo Bok.

KPMG Samjong Accounting Corp.

Seoul, Korea

March 3, 2026

&nbsp;&nbsp;This report is effective as of March 3, 2026, the audit report date. Certain subsequent events or circumstances, which may occur between the audit report date and the time of reading this report, could have a material impact on the internal control over financial reporting. Accordingly, the readers of the audit report should understand that the above audit report has not been updated to reflect the impact of such subsequent events or circumstances, if any.<br>

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