SHINHAN FINANCIAL GROUP CO LTD | CIK:0001263043 |

Filed: 4/30/2018

Entity registrant name: SHINHAN FINANCIAL GROUP CO LTD (CIK: 0001263043)

Generator: Fujitsu

SEC filing page: http://www.sec.gov/Archives/edgar/data/1263043/000119312518141173/0001193125-18-141173-index.htm

XBRL Instance: http://www.sec.gov/Archives/edgar/data/1263043/000119312518141173/shg-20171231.xml

XBRL Cloud Viewer: Click to open XBRL Cloud Viewer

EDGAR Dashboard: https://edgardashboard.xbrlcloud.com/edgar-dashboard/?cik=0001263043

Open this page in separate window: Click

ifrs-full:DisclosureOfRelatedPartyExplanatory

46.

Related parties

Intra-group balances, and income and expenses arising from intra-group transactions are eliminated in preparing the consolidated financial statements.

(a) Significant balances with the related parties as of December 31, 2016 and 2017 are as follows:


Related party	Account	2016			2017
Investments in associates:
Aju Capital Co., Ltd.	Trading assets	W	49,990			—
”	Loans		210,000			—
”	Credit card loans		1,922			—
”	Allowances		(627	)		—
”	Deposits		692			—
”	Provisions		73			—
Pohang TechnoPark2PFV	Deposits		14,658			—
BNP Paribas Cardif Life Insurance	Other assets		112			9,868
”	Credit card loans		127			191
”	Allowances		(1	)		(4	)
”	Accrued expenses		29			—
”	Deposits		353			446
”	Provisions		1			2
BNP Paribas Cardif General Insurance	Credit card loans		44			29
”	Allowances		(1	)		(1	)
”	Deposits		13			221
Dream High Fund III	Deposits		1			3
Midas Dong-A Snowball Venture Fund	Deposits		427			220
IBKS-Shinhan Creative Economy New Technology Fund	Accounts receivable		12			—
”	Deposits		1,751			78
EQP Global Energy Infrastructure Private Equity Fund	Deposits		1			—
Shinhan Praxis K-Growth Global Private Equity Fund	Other assets		175			174
JAEYOUNG SOLUTEC CO., LTD.	Loans		14,356			14,847
”	Credit card loans		42			33
”	Allowances		(70	)		(124	)
”	Deposits		7,638			2,659
”	Provisions		7			4
Partners 4th Growth Investment Fund	Deposits		2,160			2,076
SHBNPP Private Korea Equity Long-Short Professional Feeder	Other assets		175			97
Credian Healthcare Private Equity Fund II	Deposits		7			26
Midas Dong-A Snowball Venture Fund 2	Deposits		242			239
IBKS-Shinhan Creative Economy New Technology Fund II	Accounts receivable		8			—
”	Deposits		179			76
PSA 1st Fintech Private Equity Fund	Deposits		525			—
SHBNPP Private Multi Strategy Professional Feeder No.1	Other assets		43			—
Eum Private Equity Fund No.3	Deposits		80			65


Related party	Account	2016			2017
Branbuil CO., LTD.	Loans	W	15			—
”	Credit card loans		3			—
”	Allowances		(1	)		—
”	Deposits		28			55
Semantic	Credit card loans		1			—
”	Allowances		(1	)		—
Albatross Growth Fund	Accounts receivable		326			—
Shinhan Global Healthcare Fund 1	Unearned revenue		—			409
KTB Newlake Global Healthcare PEF	Deposits		—			465
”	Provisions		—			13
Shinhan Fintech New Technology Fund No.1	Unearned revenue		—			123
Taihan Industrial System Co., Ltd.	Deposits		—			100
Incorporated association Finance Saving Information Center	Deposits		—			4
Key management personnel and their immediate relatives:	Loans		1,877			3,247

	Assets	W	278,527			28,357
	Liabilities		28,865			7,284

(b)

Transactions with the related parties for the years ended December 31, 2015, 2016 and 2017 are as follows:


Related party	Account	2015			2016			2017
Related party	Account	2015			2016			2017
Investments in associates
Aju Capital co., Ltd	Interest income	W	6,440			7,332			—
”	Fees and commission income		291			257			—
”	Other operating income		23			—			—
”	Reversal of credit losses		146			—			—
”	Interest expense		(1	)		(2	)		—
”	Fees and commission expense		(694	)		(302	)		—
”	Other operating expenses		—			(18	)		—
”	Provision for credit losses		—			(149	)		—
UAMCO., Ltd	Interest income		4			—			—
”	Fees and commission income		9			—			—
”	Other operating income		4			—			—
”	Provision for credit losses		(32	)		—			—
Pohang TechnoPark2PFV	Interest expense		(15	)		(15	)		—
BNP Paribas Cardif Life Insurance	Fees and commission income		1,994			4,265			4,631
”	Provision for credit losses		(1	)		(1	)		(3	)
”	Non-operating expense		(847	)		—			—
”	General and administrative expenses		(7	)		(9	)		(10	)
Kukdong Engineering & Construction CO., LTD	Interest income		26			—			—
”	Fees and commission income		16			—			—
”	Reversal of credit losses		1			—			—


Related party	Account	2015			2016			2017
”	Interest expense		(35	)		—			—
”	Fees and commission expense		(3	)		—			—
”	Other operating expenses		(15	)		—			—
BNP Paribas Cardif General Insurance	Fees and commission income		10			4			4
”	Provision for credit losses		(1	)		(1	)		—
”	Reversal of credit losses		—			—			1
Shinhan K2 Secondary Fund	Fees and commission income		116			665			—
Dream High Fund III	Interest expense		(5	)		—			—
Midas Dong-A Snowball Venture Fund	Fees and commission income		30			28			38
”	Interest expense		(3	)		(4	)		(3	)
SHC-EN Fund	Fees and commission income		54			149			—
SP New Technology Business investment Fund I	Fees and commission income		79			30			41
IBKS-Shinhan Creative Economy New Technology Fund	Fees and commission income		39			50			37
”	Interest expense		(2	)		(1	)		(2	)
SH Rental Service	Interest expense		(1	)		—			—
SM New Technology Business Investment Fund I	Fees and commission income		96			—			55
JAEYOUNG SOLUTEC CO., LTD.	Interest income	W	616			671			654
”	Fees and commission income		1			1			1
”	Other operating income		—			7			3
”	Reversal of credit losses		—			89			1
”	Interest expense		(47	)		(21	)		(4	)
”	Provision for credit losses		(160	)		—			(55	)
”	Other operating expense		(15	)		—			—
Korea Investment Gong-pyeong Office Real Estate Investment Trust 2nd	Fees and commission income		21			55			—
The Asia Pacific Capital Fund II L.P.	Fees and commission income		—			175			85
Shinhan Praxis K-Growth Global Private Equity Fund	Fees and commission income		391			691			689
Partners 4th Growth Investment Fund	Interest expense		(6	)		(2	)		(16	)
Albatross Growth Fund	Interest expense		—			(6	)		—
Shinhan-Albatross Growth Fund	Fees and commission income		—			—			152
”	Interest expense		—			—			(21	)
PSA 1st Fintech Private Equity Fund	Interest expense		—			(5	)		—
IBKS-Shinhan Creative Economy New Technology Fund II	Fees and commission income		—			22			25


Related party	Account	2015		2016			2017
Midas Dong-A Snowball Venture Fund 2	Interest expense		—		(1	)		—
SHBNPP Private Korea Equity Long-Short Professional Feeder	Fees and commission income		506		785			892
SHBNPP Private Multi Strategy Professional Feeder No.1	Fees and commission income		—		160			—
Semantic	Interest income		—		15			—
”	Provision for credit losses		—		(1	)		—
Branbuil CO., LTD.	Fees and commission income		—		1			2
”	Provision for credit losses		—		(1	)		—
Treenkid	Interest income		—		3			—
STI New development Co, LTD	Fees and commission income		—		—			30
Shinhan Fintech New Technology Fund No.1	Fees and commission income		—		—			30
KTB New lake medical Global Investment	Interest income		—		—			10
”	Other operating income		—		—			(13	)
Shinhan Global Healthcare Fund 1	Fees and commission income		—		—			282
Taihan Industrial System Co., Ltd.	Fees and commission income		—		—			2
Key management personnel and their immediate relatives
Interest income			119		68			101

		W	9,142		14,984			7,639

The above outstanding balances and transactions have arose in the ordinary course of business and on substantially the same terms, including interest rates and security, as for comparable transactions with third-party counterparties.

(c)

Key management personnel compensation

Key management personnel compensation for the years ended December 31, 2015, 2016 and 2017 are as follows:


	2015		2016		2017
Short-term employee benefits	W	18,462		16,428		17,112
Severance benefits		393		418		979
Share-based payment transactions		6,318		9,162		6,787

	W	25,173		26,008		24,878

(d)

The guarantees provided between the related parties as of December 31, 2016 and 2017 were as follows:


		Amount of guarantees
Guarantor	Guaranteed Parties	2016		2017		Account
Shinhan Bank	Aju Capital Co., Ltd.	W	50,000		—	Unused credit line
	New lake alliance		—		700	Unused credit line
	BNP Paribas Cardif Life Insurance		10,000		10,000	Unused credit line
	Neoplux Technology Valuation Investment Fund		12,000		6,000	Security underwriting commitment
	JAEYOUNG SOLUTEC CO., LTD.		600		109	Unused credit
	”		483		429	Import letter of credit

		W	73,083		17,238

(e)

Details of collaterals provided by the related parties as of December 31, 2016 and 2017 were as follows:

Provided to

Provided by

Pledged assets

2016

2017

Shinhan Bank

Aju Capital Co., Ltd.

Beneficiary

certificate

W160,000

—

BNP Paribas Cardif Life Insurance

Government

bonds

13,699

11,666

Treenkid

Properties

200

—

JAEYOUNG SOLUTEC CO., LTD.

Properties

20,814

”

Guarantee insurance policy

7,037

201,750

39,517