Form 6-K - Report of foreign issuer [Rules 13a-16 and 15d-16]

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 2024

SHINHAN FINANCIAL GROUP CO., LTD.

(Translation of registrant's name into English)

20, Sejong-daero 9-gil, Jung-gu, Seoul 04513, Korea
(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

Indicate by check mark if the registrant is submitting the Form 6-K in

paper as permitted by Regulation S-T Rule 101(b)(1): _______

Indicate by check mark if the registrant is submitting the Form 6-K in

paper as permitted by Regulation S-T Rule 101(b)(7): _______

Indicate by check mark whether the registrant by furnishing the

information contained in this form is also thereby furnishing the

information to the Commission pursuant to Rule 12g3-2(b) under the

Securities Exchange Act of 1934.

Yes No___√___

If "Yes" is marked, indicate below the file number assigned to the

registrant in connection with Rule 12g3-2(b): 82- n/a .

 

---

 

Please refer to Exhibit 99.1 and 99.2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

---

 

EXHIBIT INDEX

Exhibit No.		Description
99.1		Independent Auditor’s Report (Separate Financial Statements) of Shinhan Life as of December 31, 2023
99.2		Independent Auditor’s Report (Consolidated Financial Statements) of Shinhan Life as of December 31, 2023

 

 

---

 

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.

				Shinhan Financial Group Co., Ltd.
				(Registrant)
Date: March 4, 2024				By:		/s/ CHUN Sang-yung
				Name: CHUN Sang-yung
				Title: Chief Financial Officer

 

 

---

Exhibit 99.1
Independent Auditor’s Report (Separate Financial Statements) of Shinhan Life as of December 31, 2023

 

On March 4, 2024, Shinhan Life, our wholly-owned life insurance subsidiary, filed its audit report with the Financial Supervisory Service and the Korea Exchange of the Republic of Korea pursuant to the Act of External Audit of Stock Companies and KOSPI Market Disclosure Regulation.

 

Contents

		Page
Independent Auditors’ Report		1
Separate Statements of Financial Position		3
Separate Statements of Comprehensive Income		5
Separate Statements of Changes in Equity		7
Separate Statements of Cash Flows		9
Notes to the SeparateFinancial Statements		10
Independent Auditors’ Review Report on Internal Control over Financial Reporting		Refer to PDF
ICFR Operating Status Report by CEO and IAM		Refer to PDF

 

 

Please refer to the attached PDF file to see more details of Audit Reports with separate financial statements.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

---

Independent Auditors’ Report

(Based on a report originally issued in Korean)

To the Board of Directors and Shareholder

Shinhan Life Insurance Co., Ltd.

Opinion

We have audited the accompanying separate financial statements of Shinhan Life Insurance Co., Ltd. (the “Company”), which comprise the separate statement of financial position as of December 31, 2023, the separate statements of comprehensive income, changes in equity and cash flows for the year then ended, and notes, comprising of material accounting policy information 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, 2023, and its separate financial performance and its separate cash flows for the year then ended in accordance with Korean International Financial Reporting Standards (“K-IFRS”).

Basis for Opinion

We conducted our audits in accordance with Korean Standards on Auditing (“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 audit of the separate financial statements in 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.

Other Matter

The separate statement of financial position of the Company as of December 31, 2022 and January 1, 2022 and the related separate statements of comprehensive income, changes in equity and cash flows for the year ended December 31, 2022 were audited by another auditor in accordance with KSAs and their report thereon, dated March 6, 2023, expressed an unqualified opinion. The separate financial statements that another auditor audited are those before reflecting the adjustments due to the adoption of K-IFRS 1117 Insurance Contracts described in Note 53. The comparative separate statements of financial position as of December 31, 2022 and January 1, 2022 and the related separate statements of comprehensive income, changes in equity and cash flows for the year ended December 31, 2022 has reflected such adjustments.

We have audited the adjustments reflected to the comparative separate financial statements as part of our audit of separate financial statements as of December 31, 2023 and for the period then ended. In our opinion, the adjustments to the accompanying separate financial statements present fairly, in all material respects, in accordance with K-IFRS. We were not engaged to audit, review, or apply any other procedures to the accompanying consolidated financial statements presented for comparative purposes, other than with respect to the adjustments, and accordingly, we do not express an audit opinion or any other form of assurance on the accompanying consolidated financial statements presented for comparative purposes taken as a whole.

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

ffrom 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 internal control that we identify during our audit.

KPMG Samjong Accounting Corp.

March 4, 2024

Seoul, Korea

This report is effective as of March 4, 2024, 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 accompanyingseparate 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.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

---

(In millions of won)		Note		December 31, 2023		December 31, 2022		January 1, 2022
Assets
Cash and due from banks at amortized cost		4,7,8,10,50,52	W	1,640,481		1,483,695		2,195,070
Financial assets at fair value through profit or loss		4,7,8,11,23,50		11,478,700		11,658,704		12,452,780
Securities at fair value through other comprehensive income		4,7,8,12,23,50		35,345,575		32,629,372		40,297,115
Securities at amortized cost		4,7,8,13,23		4,348,023		4,338,766		4,339,749
Investments in subsidiaries  and associates		14		274,581		265,493		212,311
Loans and receivables at  amortized cost		4,7,8,15,50		4,707,291		5,231,144		5,276,416
Reinsurance contract assets		25		62,815		59,017		-
Right-of-use assets		16,50		92,941		113,158		135,759
Property and equipment		17,50		76,122		81,416		93,723
Intangible assets		18,50		235,402		269,300		214,652
Derivative assets		4,7,8,21,50		116,378		92,074		6,857
Current tax assets		48,50		70,658		114,391		46,444
Investment property		20,23		14,397		14,610		14,822
Net defined benefit assets		31		34,257		44,888		32,751
Other assets		22		10,694		11,137		11,444
Total assets			W	58,508,315		56,407,165		65,329,893

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(In millions of won)		Note		December 31, 2023		December 31, 2022		January 1, 2022

---

Liabilities
Insurance contract liabilities		24	W	45,528,986			42,927,163		50,622,187
Reinsurance contract liabilities		25		93,120			62,770		281,763
Policyholders’ equity adjustments		27		(1,025)			(1,616)		45,105
Investment contract liabilities		4,7,8,26,50		1,831,826			2,296,401		3,142,578
Derivative liabilities		4,7,8,21,50		239,940			320,578		143,286
Borrowings		4,7,8,28		-			10,000		-
Debentures		4,7,8,29		299,331			643,451		614,645
Other financial liabilities		4,7,8,30,35,50		238,028			304,988		311,253
Lease liabilities		4,7,8,16,50		91,566			109,060		127,406
Provisions		32		75,565			82,718		91,850
Current tax payables		48,50		55			-		-
Deferred tax liabilities		48		1,631,841			1,488,780		1,641,830
Other liabilities		33		32,533			28,863		24,833
Total liabilities				50,061,766			48,273,156		57,046,736
Equity
Capital stock		34		578,274			578,274		578,274
Hybrid bonds		34		299,452			299,452		299,452
Capital surplus		34		820,023			820,023		2,233,525
Capital adjustments		34		1,461			1,464		1,458
Accumulated other comprehensive income(loss)		34		117,417			113,667		709,020
Retained earnings		34		6,629,922			6,321,129		4,461,428
Total equity				8,446,549			8,134,009		8,283,157
Total liabilities and equity			W	58,508,315			56,407,165		65,329,893

See accompanying notes to the separate financial statements.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(In millions of won)		Note		2023			2022
Insurance revenue		24,36	W	2,629,139			2,469,699
Reinsurance revenue		25,37		40,360			34,983

---

Insurance service expenses		24,36		1,810,115		1,713,261
Reinsurance service expenses		25,37		71,631		62,328
Other operating expenses				124,129		91,924
Insurance service result				663,624		637,169
Insurance finance income and investment income:
Insurance finance income from insurance contracts issued		24,38		364,541		883,170
Insurance finance income from reinsurance contracts held		25,38		19,095		15,757
Interest income		41,50		1,538,432		1,532,315
Gains on financial assets at fair value through profit or loss		11,50		1,187,285		532,617
Gains on disposal of securities at fair value through other comprehensive income		12		54,256		72,818
Gains on disposal of loans at amortized cost				48		27
Reversal of credit loss allowance		42,50		7,564		3,571
Gains on foreign currency transaction		43		172,736		315,184
Gains on derivatives		21,50		147,499		252,413
Dividend income		45		30,483		42,542
Fees and commission income		44,50		12,489		14,888
Other investment income		46		10,924		16,461
				3,545,352		3,681,763
Insurance finance expenses and investment expenses:
Insurance finance expenses from insurance contracts issued		24,38		2,500,731		1,653,462
Insurance finance expenses from reinsurance contracts held		25,38		19,959		16,936
Interest expenses		41,50		147,255		94,761
Losses on financial assets at fair value through profit or loss		11		353,758		1,319,165
Losses on disposal of at fair value through other comprehensive income		12		55,895		56,757
Losses on disposal of loans at amortized cost				198		73
Provision for credit loss allowance		42,50		24,406		17,879
Losses on foreign currency transaction		43		41,437		134,706
Losses on derivatives		21,50		301,322		387,687
Investment administrative expenses		40,50		16,925		20,106
Other investment expenses		46		80,773		61,117
				3,542,659		3,762,649
Net finance result			W	2,693		(80,886)

(In millions of won)		Note		2023		2022
Operating profit			W	666,317		556,283

---

Non-operating income and expenses		47		(23,943)		(21,921)
Profit before income taxes				642,374		534,362
Income tax expense		48		160,523		77,364
Profit for the period				481,851		456,998
Other comprehensive income (loss) for the period, net of income tax
Items that may be subsequently reclassified to profit or loss:
Gains (losses) on valuation of securities at fair value through other comprehensive income				2,087,218		(5,241,685)
Gains (losses) on valuation of derivatives held for cash flow hedges				105,477		(97,818)
Net finance income (expenses) from insurance contracts issued				(2,162,910)		4,704,252
Net finance income (expenses) from reinsurance contracts held				(20,765)		34,045
				9,020		(601,206)
Items that will not be subsequently reclassified to profit or loss:
Gains (losses) on valuation of securities at fair value through other comprehensive income				3,896		(9,700)
Remeasurements of defined benefit liability				(9,166)		15,553
				(5,270)		5,853
Total other comprehensive income (loss), net of income tax		12,21,34		3,750		(595,353)
Total comprehensive income (loss) for the period			W	485,601		(138,355)
Earnings per share:
Basic earnings per share and diluted earnings per share in won		51	W	4,073		3,858

See accompanying notes to the separate financial statements.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(In millions of won)

Equity attributable to equity holders of Shinhan Life Insurance Co., Ltd.

Capital stock

Hybrid bonds

Capital surplus

Capital adjustments

Accumulated other compre-hensive income (loss)

Retained earnings

Total

---

Balance at January 1, 2022 (Before)	W			578,274				299,452				2,233,525				1,458				51,926				1,996,016				5,160,651
Changes in accounting policies				-				-				-				-				657,094				2,465,412				3,122,506
Balance at January 1, 2022 (After)				578,274				299,452				2,233,525				1,458				709,020				4,461,428				8,283,157
Total comprehensive income for the period:
Profit for the period				-				-				-				-				-				456,998				456,998
Other comprehensive income, net of income tax:
Losses on valuation of securities at fair value through other comprehensive income				-				-				-				-				(5,251,385)				-				(5,251,385)
Losses on valuation of derivatives held for cash flow hedges				-				-				-				-				(97,818)				-				(97,818)
Net finance income from insurance contracts issued				-				-				-				-				4,704,252				-				4,704,252
Net finance income from reinsurance contracts held				-				-				-				-				34,045				-				34,045
Remeasurement of defined benefit plans				-				-				-				-				15,553				-				15,553
Total other comprehensive income				-				-				-				-				(595,353)				-				(595,353)
Total comprehensive income(loss)				-				-				-				-				(595,353)				456,998				(138,355)
Other changes in equity
Share-based payment				-				-				-				6				-				-				6
Dividend payment on hybrid bonds				-				-				-				-				-				(10,799)				(10,799)
Decrease in capital surplus, increase in retained earnings				-				-				(1,413,502)				-				-				1,413,502				-
Balance at December 31, 2022	W			578,274				299,452				820,023				1,464				113,667				6,321,129				8,134,009

 

 

 

 

 

 

 

 

---

 

 

 

 

(In millions of won)		Equity attributable to equity holders of Shinhan Life Insurance Co., Ltd.
		Capital stock		Hybrid bonds		Capital surplus		Capital adjustments		Accumulated other compre-hensive income (loss)		Retained earnings		Total
Balance at January 1, 2023	W	578,274		299,452		820,023		1,464		113,667		6,321,129		8,134,009
Total comprehensive income for the period:
Profit for the period		-		-		-		-		-		481,851		481,851
Other comprehensive income, net of income tax:
Gains on valuation of securities at fair value through other comprehensive income		-		-		-		-		2,091,114		-		2,091,114
Gains on valuation of derivatives intended for cash flow hedges		-		-		-		-		105,477		-		105,477
Net finance expenses from insurance contracts issued		-		-		-		-		(2,162,910)		-		(2,162,910)
Net finance expenses from reinsurance contracts held		-		-		-		-		(20,765)		-		(20,765)
Remeasurement of defined benefit plans		-		-		-		-		(9,166)		-		(9,166)
Total other comprehensive income		-		-		-		-		3,750		-		3,750
Total comprehensive income		-		-		-		-		3,750		481,851		485,601
Other changes in equity
Dividends		-		-		-		-		-		(162,257)		(162,257)
Share-based payment		-		-		-		(3)		-		-		(3)
Dividend payment on hybrid bonds		-		-		-		-		-		(10,801)		(10,801)
Balance at December 31, 2023	W	578,274		299,452		820,023		1,461		117,417		6,629,922		8,446,549

See accompanying notes to the separate financial statements.

 

 

 

 

 

 

 

 

 

---

 

 

 

 

 

 

 

 

 

 

(In millions of won)		2023		2022
Cash flows from operating activities
Profit for the period	W	481,851		456,998
Adjustment for profit or loss (Note 52)		(274,615)		(574,708)
Changes in assets and liabilities (Note 52)		(702,715)		(2,278,427)
Income tax refund(paid)		24,827		(71,758)
Interest received		1,027,457		1,164,919
Interest paid		(33,496)		(31,103)
Dividends received		40,321		47,180
Net cash inflow(outflow) from operating activities		563,630		(1,286,899)
Cash flows from investing activities
Disposal of financial assets at fair value through profit or loss		509,489		969,855
Acquisition of financial assets at fair value through profit or loss		(783,328)		(1,008,703)
Disposal of securities at fair value through other comprehensive income		3,744,617		3,861,846
Acquisition of securities at fair value through other comprehensive income		(3,138,261)		(2,950,679)
Disposal of securities at amortized cost		-		10,000
Acquisition of investments in subsidiaries		(54,000)		(20,000)
Disposal of investments in associates		-		2,456
Acquisition of investments in associates		-		(35,981)
Cash inflows from hedging activities		14,224		12,197
Cash outflows from hedging activities		(67,030)		(138,834)
Disposal of property and equipment		665		369
Acquisition of property and equipment		(16,744)		(10,115)
Disposal of intangible assets		665		682
Acquisition of intangible assets		(34,967)		(123,083)
Decrease in receivables at amortized cost		21,741		30,214
Increase in receivables at amortized cost		(3,502)		(19,722)
Net cash inflow from investing activities		193,569		580,502
Cash flows from financing activities
Repayment of debt securities		(656,645)		-
Proceeds from issuance of debt securities		299,246		-
Decrease in borrowings		(34,100)		-
Increase in borrowings		24,100		10,000
Decrease in other financial liabilities		(1,501)		(289)
Increase in other financial liabilities		896		193
Decrease in lease liabilities		(30,351)		(34,360)
Dividends paid		(162,257)		-
Hybrid bond interests paid		(10,801)		(10,799)
Net cash outflow from financing activities		(571,413)		(35,255)
Net increase(decrease) in cash and cash equivalents		185,786		(741,652)
Changes in cash and cash equivalents due to foreign currency translation		558		245

---

Cash and cash equivalents at the beginning of year		764,099		1,505,506
Cash and cash equivalents at the end of year	W	950,443		764,099

See accompanying notes to the separate financial statements.

---

Exhibit 99.2
Independent Auditor’s Report (Consolidated Financial Statements) of Shinhan Life as of December 31, 2023

 

On March 4, 2024, Shinhan Life, our wholly-owned life insurance subsidiary, filed its audit report with the Financial Supervisory Service and the Korea Exchange of the Republic of Korea pursuant to the Act of External Audit of Stock Companies and KOSPI Market Disclosure Regulation.

 

Contents

		Page
Independent Auditors' Report		1
Consolidated Statements of Financial Position		3
Consolidated Statements of Comprehensive Income		5
Consolidated Statements of Changes in Equity		7
Consolidated Statements of Cash Flows		9
Notes to the Consolidated Financial Statements		Refer to PDF

 

 

Please refer to the attached PDF file to see more details of Audit Reports with consolidated financial statements.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

---

 

Independent Auditors’ Report

(Based on a report originally issued in Korean)

To the Board of Directors and Shareholder

Shinhan Life Insurance Co., Ltd.

Opinion

We have audited the accompanying consolidated financial statements of Shinhan Life Insurance Co., Ltd. and its subsidiaries (the “Group”), which comprise the consolidated statement of financial position as of December 31, 2023, the consolidated statements of comprehensive income, changes in equity and cash flows for the year then ended, and notes, comprising of material accounting policy information 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, 2023, and its consolidated financial performance and its consolidated cash flows for the year then ended in accordance with Korean International Financial Reporting Standards (“K-IFRS”).

Basis for Opinion

We conducted our audits in accordance with Korean Standards on Auditing (“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 audit of the consolidated financial statements in 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.

Other Matter

The consolidated statement of financial position of the Group as of December 31, 2022 and January 1, 2022 and the related consolidated statements of comprehensive income, changes in equity and cash flows for the year ended December 31, 2022 were audited by another auditor in accordance with KSAs and their report thereon, dated March 6, 2023, expressed an unqualified opinion. The consolidated financial statements that another auditor audited are those before reflecting the adjustments due to the adoption of K-IFRS 1117 Insurance Contracts described in Note 56. The comparative consolidated statements of financial position as of December 31, 2022 and January 1, 2022 and the related consolidated statements of comprehensive income, changes in equity and cash flows for the year ended December 31, 2022 has reflected such adjustments.

We have audited the adjustments reflected to the comparative consolidated financial statements as part of our audit of consolidated financial statements as of December 31, 2023 and for the period then ended. In our opinion, the adjustments to the accompanying consolidated financial statements present fairly, in all material respects, in accordance with K-IFRS. We were not engaged to audit, review, or apply any other procedures to the accompanying consolidated financial statements presented for comparative purposes, other than with respect to the adjustments, and accordingly, we do not express an audit opinion or any other form of assurance on the accompanying consolidated financial statements presented for comparative purposes taken as a whole.

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 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 Separate 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, 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 internal control that we identify during our audit.

KPMG Samjong Accounting Corp.

March 4, 2024

Seoul, Korea

This report is effective as of March 4, 2024, 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.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

---

(In millions of won)		Note			December 31, 2023			December 31, 2022					January 1, 2022
Assets
Cash and due from banks at amortized cost		4,7,8,10,50,52	W		1,838,006			1,653,704					2,360,571
Financial assets at fair value through profit or loss		4,7,8,11,23, 50			11,127,310			11,527,229					12,411,406
Securities at fair value through other comprehensive income		4,7,8,12,23,50			35,674,980			32,753,803					40,338,093
Securities at amortized cost		4,7,8,13,23			4,348,023			4,338,766					4,339,749
Investments in associates		14			25,956			41,043					4,379
Loans and receivables at amortized cost		4,7,8,15,50			4,775,933			5,282,587					5,321,737
Reinsurance contract assets		25			62,815			59,017					-
Right-of-use assets		16,50			97,606			116,466					131,216
Property and equipment, net		17,50			90,359			88,954					100,465
Intangible assets		18,50			257,771			292,687					233,093
Derivative assets		4,7,8,21,50			122,465			95,238					7,070
Current tax assets		48,50			71,169			114,669					46,399
Deferred tax assets		48			88			-					-
Investment property		20,23			14,397			14,610					14,822
Net defined benefit assets		31			34,796			44,907					32,751
Other assets		22			99,671			77,451					67,939
Total assets			W		58,641,345			56,501,131					65,409,690

 

 

 

 

 

 

 

 

 

 

---

(In millions of won)		Note		December 31, 2023		December 31, 2022		January 1, 2022
Liabilities
Insurance contract liabilities		24	W	45,533,987		42,928,691		50,622,187
Reinsurance contract liabilities		25		93,120		62,770		281,763
Policyholders’ equity adjustments		27		(1,025)		(1,616)		45,154
Investment contract liabilities		4,7,8,26,50		1,831,826		2,296,401		3,142,578
Derivative liabilities		4,7,8,21,50		240,771		321,561		143,791
Borrowings		4,7,8,28		17,835		11,271		1,855
Debentures		4,7,8,29		299,331		643,451		614,645
Other financial liabilities		4,7,8,30,35,50		267,901		330,189		334,152
Lease liabilities		4,7,8,16,50		101,294		118,702		131,587
Net defined benefit liabilities		31		2,336		107		9
Provisions		32		79,572		85,892		95,126
Current tax payable		48,50		55		-		-
Deferred tax liabilities		48		1,645,360		1,495,764		1,641,572
Other liabilities		33		105,848		87,409		80,888
Total liabilities				50,218,211		48,380,592		57,135,307
Equity
Capital stock		34		578,274		578,274		578,274
Hybrid bonds		34		299,452		299,452		299,452
Capital surplus		34		820,012		820,012		2,233,514
Capital adjustments		34		1,461		1,464		1,458
Accumulated other comprehensive income		34		124,738		121,477		713,878
Retained earnings		34		6,599,197		6,299,860		4,447,807
Total equity				8,423,134		8,120,539		8,274,383
Total liabilities and equity			W	58,641,345		56,501,131		65,409,690

See accompanying notes to the consolidated financial statements.

 

 

 

 

 

 

 

 

 

 

---

(In millions of won)		Note		2023			2022
Insurance revenue		24,36	W	2,641,027			2,469,699
Reinsurance revenue		25,37		40,360			34,983
Insurance service expenses		24,36		1,813,791			1,709,035
Reinsurance service expenses		25,37		71,631			62,328
Other operating expenses				141,809			102,289
Insurance service result				2,681,387			2,504,682
Insurance finance income and investment income:
Insurance finance income from insurance contracts issued		24,38		364,541			883,170
Insurance finance income from reinsurance contracts held		25,38		19,095			15,757
Interest income		41,50		1,564,494			1,549,471
Gains on financial assets at fair value through profit or loss		11,50		1,173,532			540,739
Gains on disposal of securities at fair value through other comprehensive income		12		54,256			72,818
Gains on disposal of loans at amortized cost				48			27
Reversal of credit loss allowance		42,50		9,641			3,562
Gains on foreign currency transaction		43		177,491			319,495
Gains on derivatives		21,50		153,712			256,784
Dividend income		45		30,483			42,543
Fees and commission income		44,50		12,220			13,142
Other investment income		46		210,815			175,115
				3,770,328			3,872,623
Insurance finance expenses and investment expenses:
Insurance finance expenses from insurance contracts issued		24,38		2,500,731			1,653,462
Insurance finance expenses from reinsurance contracts held		25,38		19,959			16,936
Interest expenses		41,50		147,595			94,970
Losses on financial assets at fair value through profit or loss		11		352,776			1,334,502
Losses on disposal of securities measured at fair value through other comprehensive income		12		55,895			56,757
Losses on disposal of loans at amortized cost				198			73
Provision for credit loss allowance		42,50		25,813			19,948
Losses on foreign currency transaction		43		47,851			138,823
Losses on derivatives		21,50		307,698			392,232
Investment administrative expenses		40,50		18,203			24,036
Other investment expenses		46		288,708			221,334
				3,765,427			3,953,073
Net finance result			W	4,901			(80,450)

---

(In millions of won)		Note		2023		2022
Operating profit			W	659,057		550,580
Non-operating expenses		47		(19,202)		(21,895)
Equity in net income of associated companies		14		(302)		4,221
Profit before income taxes				639,553		532,906
Income tax expense		48		167,158		83,514
Profit for the period				472,395		449,392
Other comprehensive income (loss) for the period, net of income tax
Items that may be subsequently reclassified to profit or loss:
Gains (losses) on valuation of securities at fair value through other comprehensive income				2,087,606		(5,241,573)
Equity in other comprehensive income of associates				-		3
Foreign currency translation adjustments for foreign operations				(738)		2,883
Gains (losses) on valuation of derivatives held for cash flow hedges				105,477		(97,818)
Net finance income (expenses) from insurance contracts issued				(2,162,910)		4,704,252
Net finance income (expenses) from reinsurance contracts held				(20,765)		34,045
				8,670		(598,208)
Items that will not be subsequently reclassified to profit or loss:
Gains (losses) on valuation of securities at fair value through other comprehensive income				3,896		(9,700)
Equity in other comprehensive income of associates				-		(5)
Remeasurements of defined benefit liability				(9,305)		15,471
				(5,409)		5,766
Total other comprehensive income (loss), net of income tax		12,21,34		3,261		(592,442)
Total comprehensive income (loss) for the period			W	475,656		(143,050)
Profit attributable to:
Equity holders of Shinhan Life Insurance Co., Ltd.				472,395		449,392
			W	472,395		449,392
Total comprehensive income (loss) attributable to:
Equity holders of Shinhan Life Insurance Co., Ltd.				475,656		(143,050)
			W	475,656		(143,050)
Earnings per share:
Basic earnings per share in won		51	W	3,991		3,792

See accompanying notes to the consolidated financial statements

 

 

 

 

 

 

---

(In millions of won)		Equity attributable to equity holders of Shinhan Life Insurance Co., Ltd.
		Capital stock		Hybrid bonds		Capital surplus		Capital adjustments		Accumulated other compre-hensive income (loss)		Retained earnings		Total
Balance at January 1, 2022 (Before)	W	578,274		299,452		2,233,514		1,458		43,802		1,996,063		5,152,563
Changes in accounting policies		-		-		-		-		670,075		2,451,744		3,121,819
Balance at January 1, 2022 (After)		578,274		299,452		2,233,514		1,458		713,877		4,447,807		8,274,382
Total comprehensive income for the period:
Profit for the period		-		-		-		-		-		449,392		449,392
Other comprehensive income, net of income tax:
Losses on valuation of securities at fair value through other comprehensive income		-		-		-		-		(5,251,273)		-		(5,251,273)
Equity in other comprehensive income of associates		-		-		-		-		(2)		-		(2)
Foreign currency translation adjustments for foreign operations		-		-		-		-		2,883		-		2,883
Losses on valuation of derivatives held for cash flow hedges		-		-		-		-		(97,818)		-		(97,818)
Net finance income from insurance contracts issued		-		-		-		-		4,704,252		-		4,704,252
Net finance income from reinsurance contracts held		-		-		-		-		34,045		-		34,045
Remeasurement of defined benefit plans		-		-		-		-		15,471		-		15,471
Total other comprehensive income		-		-		-		-		(592,442)		-		(592,442)
Other changes in equity
Share-based payment		-		-		-		6		-		-		6
Interest expenses on hybrid bonds		-		-		-		-		-		(10,799)		(10,799)
Decrease in Additional Paid-In Capital, Transfer from Retained Earnings		-		-		(1,413,502)		-		-		1,413,502		-
Reclassification of other comprehensive income to retained earnings		-		-		-		-		42		(42)		-
Balance at December 31, 2022 (Unaudited)	W	578,274		299,452		820,012		1,464		121,477		6,299,860		8,120,539

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

---

(In millions of won)			Equity attributable to equity holders of Shinhan Life Insurance Co., Ltd.
			Capital stock		Hybrid bonds		Capital surplus		Capital adjustments		Accumulated other compre-hensive income (loss)		Retained earnings		Total
Balance at January 1, 2023		W	578,274		299,452		820,012		1,464		121,477		6,299,860		8,120,539
Total comprehensive income for the period:
Profit for the period			-		-		-		-		-		472,395		472,395
Other comprehensive income, net of income tax:
Gains on valuation of securities at fair value through other comprehensive income			-		-		-		-		2,091,502		-		2,091,502
Foreign currency translation adjustments for foreign operations			-		-		-		-		(738)		-		(738)
Gains on valuation of derivatives intended for cash flow hedges			-		-		-		-		105,477		-		105,477
Net finance expenses from insurance contracts issued			-		-		-		-		(2,162,910)		-		(2,162,910)
Net finance expenses from reinsurance contracts held			-		-		-		-		(20,765)		-		(20,765)
Remeasurement of defined benefit plans			-		-		-		-		(9,305)		-		(9,305)
Total other comprehensive income			-		-		-		-		3,261		-		3,261
Other changes in equity
Dividends			-		-		-		-		-		(162,257)		(162,257)
Share-based payment			-		-		-		(3)		-		-		(3)
Interest expenses on hybrid bonds			-		-		-		-		-		(10,801)		(10,801)
Balance at December 31, 2023		W	578,274		299,452		820,012		1,461		124,738		6,599,197		8,423,134

See accompanying notes to the consolidated financial statements

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

---

 

 

(In millions of won)		2023		2022
Cash flows from operating activities
Profit before income taxes	W	472,395		449,392
Adjustment for profit or loss (Note 52)		(291,067)		(582,788)
Changes in assets and liabilities (Note 52)		(707,446)		(2,325,951)
Income taxes received (paid)		24,597		(71,970)
Interest received		1,048,077		1,179,902
Interest paid		(33,496)		(31,103)
Dividends received		40,321		47,180
		553,381		(1,335,338)
Cash flows from investing activities
Disposal of financial assets at fair value through profit or loss		507,025		972,389
Acquisition of financial assets at fair value through profit or loss		(561,784)		(891,305)
Disposal of securities at fair value through other comprehensive income		3,751,873		3,861,846
Acquisition of securities at fair value through other comprehensive income		(3,349,281)		(3,035,678)
Disposal of securities at amortized cost		-		10,000
Disposal of investments in associates		-		2,456
Acquisition of investments in associates		(25,200)		(35,981)
Cash inflows from hedging activities		15,436		12,585
Cash outflows from hedging activities		(70,720)		(139,690)
Disposal of property and equipment		838		414
Acquisition of property and equipment		(26,809)		(12,484)
Disposal of intangible assets		665		648
Acquisition of intangible assets		(40,908)		(129,524)
Decrease in receivables at amortized cost		23,996		31,219
Increase in receivables at amortized cost		(5,984)		(23,046)
Net cash inflow inflow from investing activities		219,147		623,849
Cash flows from financing activities
Increase in non-controlling interests		16,488		(782)
Repayment of debentures		(656,645)		-
Issuance of debentures		299,246		-
Decrease in borrowings		(34,100)		-
Increase in borrowings		24,100		10,000
Decrease in other financial liabilities		(1,501)		(289)
Increase in other financial liabilities		861		1
Decrease in lease liabilities		(37,920)		(40,471)
Dividends paid		(162,257)		-
Hybrid bond dividends paid		(10,801)		(10,799)
Net cash outflow from financing activities	W	(562,529)		(42,340)
Net Increase in cash and cash equivalents		209,999		(753,829)
Changes in cash and cash equivalents due to foreign currency translation		558		245
Cash and cash equivalents at the beginning of the period		803,520		1,557,104
Cash and cash equivalents at the end of the period	W	1,014,077		803,520

See accompanying notes to the consolidated financial statements.

 

---

---