SHINHAN FINANCIAL GROUP CO LTD | CIK:0001263043 | 3

  • Filed: 4/30/2018
  • Entity registrant name: SHINHAN FINANCIAL GROUP CO LTD (CIK: 0001263043)
  • Generator: Fujitsu
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    • ifrs-full:DisclosureOfSignificantInvestmentsInAssociatesExplanatory

    16. Investments in associates

     

      (a) Investments in associates as of December 31, 2016 and 2017 are as follows:

     

    Investees

    		   Country   Reporting
    date    		   Ownership (%)  
          2016     2017  

    BNP Paribas Cardif Life Insurance (*1),(*3)

    		   Korea   September 30     14.99       14.99  

    Aju Capital Co., Ltd. (*8)

    		   ”   —       12.85       —    

    Daewontos Co., Ltd.(*4),(*9)

    		   ”   December 31     36.33       36.33  

    Neoplux Technology Valuation Investment
    Fund (*1)

    		   ”   September 30     33.33       33.33  

    JAEYOUNG SOLUTEC CO.,
    LTD. (*1),(*4),(*5)

    		   ”   ”     10.45       9.61  

    Partners 4th Growth Investment Fund (*1)

    		   ”   ”     25.00       25.00  

    JAEYANG INDUSTRY (*4),(*9)

    		   ”   March 31     25.90       25.90  

    Chungyoung INC (*4),(*9)

    		   ”   June 30     18.94       18.94  

    DAEKWANG SEMICONDUCTOR CO.,
    LTD. (*4),(*9)

    		   ”   ”     20.94       20.94  

    Dream High Fund III (*7)

    		   ”   December 31     54.55       54.55  

    Asia Pacific No.39 Ship Investment Co., Ltd.

    		   ”   ”     50.00       50.00  

    KCLAVIS Meister Fund No.17

    		   ”   ”     26.09       26.09  

    SG No.9 Corporate Recovery Private Equity Fund

    		   ”   ”     26.49       26.49  

    Plutus-SG Private Equity Fund

    		   ”   ”     26.67       26.67  

    SG ARGES Private Equity Fund No.1

    		   ”   ”     24.06       24.06  

    OST Progress- 2 Fund

    		   ”   ”     27.62       27.62  

    Eum Private Equity Fund No.3

    		   ”   ”     20.76       20.76  

    Richmond Private Yong in Retail Facility Real Estate Fund No.1

    		   ”   ”     —         41.80  

    KTB Confidence Private Placement

    		   ”   ”     —         30.29  

    Meritz AI-SingA330-A Investment Type Private Placement Special Asset Fund

    		   ”   ”     —         23.89  

    Meritz AI-SingA330-B Investment Type Private Placement Special Asset Fund

    		   ”   ”     —         20.16  

    Pine Asia Unsecured Individual Rehabilitation Bond Fund 18

    		   ”   ”     —         22.86  

    Platform Partners brick save Private Investment trust (*7)

    		   ”   ”     —         98.77  

    Synergy-Shinhan Mezzanine New Technology Investment Fund

    		   ”   ”     —         47.62  

    The Asia Pacific Capital Fund II L.P.

    		   Cayman
    Islands    		   ”     25.18       25.18  

    Shinhan Praxis K-Growth Global Private Equity Fund (*6)

    		   Korea   ”     18.87       18.87  

    Credian Healthcare Private Equity Fund II

    		   ”   ”     34.07       34.07  

    Kiwoom Milestone Professional Private Real Estate Trust 19

    		   ”   ”     50.00       50.00  

    FG EURO GREEN PRIVATE REAL ESTATE TRUST No.3

    		   ”   ”     21.28       21.28  

    Brain Professional Private Trust No.4

    		   ”   ”     27.49       27.49  

    Hanhwa US Equity Strategy Private Real Estate Fund No.1

    		   ”   ”     44.84       44.84  

    Brain KS Qualified Privately Placed Fund No.6

    		   ”   ”     50.00       50.00  

     

    Investees

    		   Country   Reporting
    date    		   Ownership (%)  
          2016     2017  

    M360 CRE Income Fund (*7)

    		   U.S.A   ”     42.83       57.87  

    Shinhan Global Healthcare Fund 1(*6)

    		   Korea   December 31     —         4.41  

    JB Power TL Investment Type Private Placement Special Asset Fund 7

    		   ”   ”     —         33.33  

    IBK AONE convertible 1

    		   ”   ”     —         47.25  

    Rico synergy collabo Multi-Mezzanine 3 (*7)

    		   ”   ”     —         50.00  

    KB NA Hickory Private Special Asset Fund

    		   ”   ”     —         37.50  

    GB Professional Private Investment Trust 6 (*7)

    		   ”   ”     —         94.51  

    Koramco Europe Core Private Placement Real Estate Fund No.2-2

    		   ”   ”     —         48.49  

    SHBNPP Private Korea Equity Long-Short Professional Feeder (*10)

    		   ”   ”     15.88       9.85  

    SHBNPP Private Multi Strategy Professional Feeder No.1 (*8)

    		   ”   —       29.55       —    

    Shinhan-Stonebridge Petro PEF (*6)

    		   ”   December 31     1.82       1.82  

    BNP Paribas Cardif General Insurance (*1),(*2)

    		   ”   September 30     10.00       10.00  

    Axis Global Growth New Technology Investment Association

    		   ”   December 31     —         31.85  

    Polaris No7 Start up and Venture Private Equity Fund

    		   ”   ”     —         28.57  

    Hermes Private Investment Equity Fund

    		   ”   ”     —         29.17  

     

    (*1) Financial statements as of September 30, 2017 were used for the equity method since the financial statements as of December 31, 2017 were not available. Significant trades and events occurred within the period were properly reflected.
    (*2) The Group applies the equity method accounting as the Group has significant influence on the financial and operating policies of the investee through the ability to elect investees’ board members and representation in decision making bodies of the investee.
    (*3) The Group has a significant influence on the investees through important business transactions.
    (*4) The shares of the investees were acquired by debt-equity swap. The Group reclassified available-for-sale financial assets to investments in associates as the reorganization procedures were completed and now the Group can normally exercise its voting rights to the investees.
    (*5) Although the ownership interests in JAEYOUNG SOLUTEC CO., LTD. were less than 15%, the Group used the equity method as the investee should consult with the Group when the investee decides major management decision such as dividend, business planning or business transfer.
    (*6) As a managing partner, the Group has a significant influence over the investees.
    (*7) 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.
    (*8) The associates were disposed or reclassified.
    (*9) The latest financial statements were used for the equity method since the financial statements as of December 31, 2017 were not available. Significant trades and events occurred within the period were properly reflected.
    (*10) Although the ownership interests in SHBNPP Private Korea Equity Long-Short Professional Feeder were less than 20%, the Group has significant influence on the entity as the investment manager.

     

     

      (b) Changes in investments in associates for the years ended December 31, 2016 and 2017 were as follows:

     

         2016  

    Investees

    		    Beginning
    balance    		      Investment
    and
    dividend    		     Equity
    method
    income
    (loss)    		     Change in
    other
    comprehensive
    income    		     Impairment
    loss    		     Ending
    balance    		  

    BNP Paribas Cardif Life Insurance

    		    W 57,280        —         (2,495 )      5,428       —         60,213  

    Aju Capital Co., Ltd. (*1)

    		      34,444        (2,588 )      9,038       (58 )      —         40,836  

    UAMCO., Ltd.

    		      125,822        (128,827 )      2,882       123       —         —    

    Daewontos Co., Ltd. (*3)

    		      —          —         —         —         —         —    

    Neoplux Technology Valuation Investment Fund

    		      1,993        4,768       765       —         —         7,526  

    JAEYOUNG SOLUTEC CO., LTD. (*2)

    		      6,238        —         (504 )      2       —         5,736  

    Partners 4th Growth Investment Fund

    		      1,800        3,080       (325 )      —         —         4,555  

    JAEYANG INDUSTRY (*3)

    		      —          —         —         —         —         —    

    Chungyoung INC

    		      —          —         —         —         —         —    

    DAEKWANG SEMICONDUCTOR CO., LTD.

    		      —          4,776       —         —         —         4,776  

    SHC-IMM New Growth Fund

    		      3,175        (1,189 )      309       —         —         2,295  

    Dream High Fund III

    		      1,556        —         171       1,417       —         3,144  

    SHC-EN Fund

    		      4,312        (4,942 )      630       —         —         —    

    Albatross Growth Fund

    		      3,341        (727 )      347       (1,389 )      —         1,572  

    Asia Pacific No.39 Ship Investment Co., Ltd.

    		      5,085        (837 )      342       586       —         5,176  

    SG No.9 Corporate Recovery Private Equity Fund

    		      —          3,886       96       —         —         3,982  

    Plutus-SG Private Equity Fund

    		      —          4,338       (39 )      —         —         4,299  

    SG ARGES Private Equity Fund No.1

    		      —          8,955       21       —         —         8,976  

    Eum Private Equity Fund No.3

    		      —          5,982       (49 )      —         —         5,933  

    The Asia Pacific Capital Fund II L.P.

    		      33,715        (4,419 )      (7,506 )      (2,872 )      (7,339 )      11,579  

    BNH-CJ Bio Healthcare Fund

    		      9,095        (12,892 )      3,797       —         —         —    

    Korea Investment Gong-pyeong Office Real Estate Investment Trust 2nd

    		      28,010        (28,631 )      1,085       —         —         464  

    Shinhan Praxis K-Growth Global Private Equity Fund

    		      8,614        4,624       (205 )      500       —         13,533  

    Credian Healthcare Private Equity Fund II

    		      —          4,148       (61 )      —         —         4,087  

    Kiwoom Milestone Professional Private Real Estate Trust 19

    		      —          10,944       (183 )      —         —         10,761  

    FG EURO GREEN PRIVATE REAL ESTATE TRUST No.3

    		      —          19,144       461       1,632       —         21,237  

    Brain Professional Private Trust No.4

    		      —          5,000       316       —         —         5,316  

    Hanhwa US Equity Strategy Private Real Estate Fund No.1

    		      —          25,000       747       17       —         25,764  

    Brain KS Qualified Privately Placed Fund No.6

    		      —          5,001       (13 )      (92 )      —         4,896  

    M360 CRE Income Fund

    		      —          22,992       —         175       —         23,167  

    SHBNPP Private Korea Equity Long-Short Professional Feeder

    		      28,076        (13,467 )      (429 )      —         —         14,180  

     

     

         2016  

    Investees

    		    Beginning
    balance    		      Investment
    and
    dividend    		     Equity
    method
    income
    (loss)    		      Change in
    other
    comprehensive
    income    		     Impairment
    loss    		     Ending
    balance    		  

    SHBNPP Private Multi Strategy Professional Feeder No.1

    		    W —          5,000       14        —         —         5,014  

    Shinhan-Stonebridge Petro PEF

    		      17,841        (2 )      648        —         —         18,487  

    Others

    		      22,609        17,008       135        (3,656 )      —         36,096  
      

     

     

    		     

     

     

    		    

     

     

    		     

     

     

    		    

     

     

    		    

     

     

    		  
       W 393,006        (43,875 )      9,995        1,813       (7,339 )      353,600  
      

     

     

    		     

     

     

    		    

     

     

    		     

     

     

    		    

     

     

    		    

     

     

    		  

     

    (*1) The market value of the investment is W51,543 million as of December 31, 2016 based on the quoted market price.
    (*2) The market value of the investment is W10,466 million as of December 31, 2016 based on the quoted market price.
    (*3) The Group has stopped recognizing its equity method income or loss due to the investees’ cumulative loss.

     

     

         2017  

    Investees

    		    Beginning
    balance    		      Investment
    and
    dividend    		     Equity
    method
    income
    (loss)    		     Change in
    other
    comprehensive
    income    		     Impairment
    loss    		      Ending
    balance    		  

    BNP Paribas Cardif Life Insurance

    		    W 60,213        (255 )      3,682       (11,024 )      —          52,616  

    Aju Capital Co., Ltd.

    		      40,836        (42,022 )      438       748       —          —    

    Daewontos Co., Ltd. (*2)

    		      —          —         —         —         —          —    

    Neoplux Technology Valuation Investment Fund

    		      7,526        3,890       1,564       490       —          13,470  

    JAEYOUNG SOLUTEC CO., LTD. (*1)

    		      5,736        —         (2,009 )      122       —          3,849  

    Partners 4th Growth Investment Fund

    		      4,555        9,220       (385 )      —         —          13,390  

    JAEYANG INDUSTRY (*2)

    		      —          —         —         —         —          —    

    Chungyoung INC (*2)

    		      —          —         —         —         —          —    

    DAEKWANG SEMICONDUCTOR CO., LTD.

    		      4,776        —         (952 )      —         —          3,824  

    Dream High Fund III

    		      3,144        —         (109 )      (830 )      —          2,205  

    Asia Pacific No.39 Ship Investment Co., Ltd.

    		      5,176        (802 )      300       8       —          4,682  

    KCLAVIS Meister Fund No.17

    		      2,989        —         50       —         —          3,039  

    SG No.9 Corporate Recovery Private Equity Fund

    		      3,982        (192 )      173       —         —          3,963  

    Plutus-SG Private Equity Fund

    		      4,299        (132 )      84       —         —          4,251  

    SG ARGES Private Equity Fund No.1

    		      8,976        (2,754 )      200       —         —          6,422  

    OST Progress- 2 Fund

    		      1,460        3,500       (65 )      —         —          4,895  

    Eum Private Equity Fund No.3

    		      5,933        (1,362 )      354       —         —          4,925  

    Richmond Private Yong in Retail Facility Real Estate Fund No.1

    		      —          7,223       878       —         —          8,101  

    KTB Confidence Private Placement

    		      —          4,927       377       1,099       —          6,403  

    Meritz AI-SingA330-A Investment Type Private Placement Special Asset Fund

    		      —          6,504       457       (204 )      —          6,757  

    Meritz AI-SingA330-B Investment Type Private Placement Special Asset Fund

    		      —          8,012       628       (253 )      —          8,387  

    Pine Asia Unsecured Individual Rehabilitation Bond Fund 18

    		      —          5,867       145       —         —          6,012  

    Platform Partners brick save Private Investment trust

    		      —          7,877       192       —         —          8,069  

    Synergy-Shinhan Mezzanine New Technology Investment Fund

    		      —          5,000       (1 )      —         —          4,999  

    The Asia Pacific Capital Fund II L.P.

    		      11,579        454       (901 )      (3,825 )      —          7,307  

    Shinhan Praxis K-Growth Global Private Equity Fund

    		      13,533        6,415       (1,590 )      596       —          18,954  

    Credian Healthcare Private Equity Fund II

    		      4,087        —         7       (281 )      —          3,813  

    Kiwoom Milestone Professional Private Real Estate Trust 19

    		      10,761        (222 )      (131 )      —         —          10,408  

     

     

         2017  

    Investees

    		    Beginning
    balance    		      Investment
    and
    dividend    		     Equity
    method
    income
    (loss)    		     Change in
    other
    comprehensive
    income    		     Impairment
    loss    		     Ending
    balance    		  

    FG EURO GREEN PRIVATE REAL ESTATE TRUST No.3

    		    W 21,237        (841 )      641       (577 )      —         20,460  

    Brain Professional Private Trust No.4

    		      5,316        —         529       2       —         5,847  

    Hanhwa US Equity Strategy Private Real Estate Fund No.1

    		      25,764        (1,859 )      1,591       (17 )      —         25,479  

    Brain KS Qualified Privately Placed Fund No.6

    		      4,896        —         (78 )      (13 )      —         4,805  

    M360 CRE Income Fund

    		      23,167        132,768       9,270       (11,300 )      —         153,905  

    Shinhan Global Healthcare Fund 1

    		      —          3,440       (33 )      —         —         3,407  

    JB Power TL Investment Type Private Placement Special Asset Fund 7

    		      —          18,268       422       —         —         18,690  

    IBK AONE convertible 1

    		      —          5,000       122       —         —         5,122  

    Rico synergy collabo Multi-Mezzanine 3

    		      —          5,001       25       —         —         5,026  

    KB NA Hickory Private Special Asset Fund

    		      —          33,362       729       —         —         34,091  

    GB PROFESSIONAL PRIVATE INVESTMENT TRUST 6

    		      —          8,600       —         —         —         8,600  

    Koramco Europe Core Private Real Estate Trust No.2-2

    		      —          21,408       (648 )      —         —         20,760  

    SHBNPP Private Korea Equity Long-Short Professional Feeder

    		      14,180        (9,972 )      653       —         —         4,861  

    SHBNPP Private Multi Strategy Professional Feeder No.1

    		      5,014        (5,049 )      35       —         —         —    

    Shinhan-Stonebridge Petro PEF

    		      18,487        —         714       —         —         19,201  

    BNP Paribas Cardif General Insurance

    		      2,584        2,750       (910 )      5       —         4,429  

    Axis Global Growth New Technology Investment Association

    		      —          5,000       (47 )      —         —         4,953  

    Polaris No.7 Entrepreneur Private Equity Fund

    		      —          4,400       (41 )      —         —         4,359  

    Hermes Private Investment Equity Fund

    		      —          17,500       (3 )      —         —         17,497  

    Others

    		      33,394        21,820       4,036       (45 )      (144 )      59,061  
      

     

     

    		     

     

     

    		    

     

     

    		    

     

     

    		    

     

     

    		    

     

     

    		  
       W 353,600        282,744       20,393       (25,299 )      (144 )      631,294  
      

     

     

    		     

     

     

    		    

     

     

    		    

     

     

    		    

     

     

    		    

     

     

    		  

     

    (*1) The market value of the investment is W6,826 million as of December 31, 2017 based on the quoted market price.
    (*2) The Group has stopped recognizing its equity method income or loss due to the investees’ cumulative loss.

     

     

      (c) Condensed statement of financial position information of associates as of December 31, 2016 and 2017 are as follows:

     

         2016  

    Investees

    		    Asset      Liability  

    BNP Paribas Cardif Life Insurance

    		    W 4,182,208        3,779,257  

    Aju Capital Co., Ltd.

    		      6,543,737        5,744,415  

    Daewontos Co., Ltd.

    		      399        2,492  

    Neoplux Technology Valuation Investment Fund

    		      22,577        —    

    JAEYOUNG SOLUTEC CO., LTD.

    		      155,368        120,184  

    Partners 4th Growth Investment Fund

    		      18,478        257  

    JAEYANG INDUSTRY

    		      2,146        4,717  

    Chungyoung INC

    		      2,341        6,753  

    DAEKWANG SEMICONDUCTOR CO., LTD.

    		      35,204        12,392  

    SHC-IMM New Growth Fund

    		      3,675        117  

    Dream High Fund III

    		      5,765        —    

    Albatross Growth Fund

    		      5,237        915  

    Asia Pacific No.39 Ship Investment Co., Ltd.

    		      10,379        28  

    SG No.9 Corporate Recovery Private Equity Fund

    		      15,069        38  

    Plutus-SG Private Equity Fund

    		      16,188        68  

    SG ARGES Private Equity Fund No.1

    		      37,392        91  

    Eum Private Equity Fund No.3

    		      28,584        4  

    The Asia Pacific Capital Fund II L.P.

    		      46,043        65  

    Korea Investment Gong-pyeong Office Real Estate Investment Trust 2nd

    		      928        1  

    Shinhan Praxis K-Growth Global Private Equity Fund

    		      72,075        350  

    Credian Healthcare Private Equity Fund II

    		      12,040        47  

    Kiwoom Milestone Professional Private Real Estate Trust 19

    		      57,692        36,169  

    FG EURO GREEN PRIVATE REAL ESTATE TRUST No.3

    		      99,794        3  

    Brain Professional Private Trust No.4

    		      19,384        46  

    Hanhwa US Equity Strategy Private Real Estate Fund No.1

    		      59,781        2,327  

    Brain KS Qualified Privately Placed Fund No.6

    		      9,794        1  

    M360 CRE Income Fund

    		      60,261        6,167  

    SHBNPP Private Korea Equity Long-Short Professional Feeder

    		      105,775        16,519  

    SHBNPP Private Multi Strategy Professional Feeder No.1

    		      20,325        3,340  

    Shinhan-Stonebridge Petro PEF

    		      1,015,299        804  
      

     

     

    		     

     

     

    		  
       W 12,663,938        9,737,567  
      

     

     

    		     

     

     

    		  

     

     

         2017  

    Investees

    		    Asset      Liability  

    BNP Paribas Cardif Life Insurance

    		    W 4,133,674        3,781,688  

    Daewontos Co., Ltd.

    		      400        2,492  

    Neoplux Technology Valuation Investment Fund

    		      40,692        283  

    JAEYOUNG SOLUTEC CO., LTD.

    		      157,009        137,916  

    Partners 4th Growth Investment Fund

    		      53,944        383  

    JAEYANG INDUSTRY

    		      2,146        4,717  

    Chungyoung INC

    		      3,292        8,392  

    DAEKWANG SEMICONDUCTOR CO., LTD.

    		      29,069        10,806  

    Dream High Fund III

    		      4,076        34  

    Asia Pacific No.39 Ship Investment Co., Ltd.

    		      9,389        27  

    KCLAVIS Meister Fund No.17

    		      11,694        42  

    SG No.9 Corporate Recovery Private Equity Fund

    		      15,035        76  

    Plutus-SG Private Equity Fund

    		      16,009        69  

    SG ARGES Private Equity Fund No.1

    		      26,758        69  

    OST Progress- 2 Fund

    		      17,829        107  

    Eum Private Equity Fund No.3

    		      23,725        5  

    Richmond Private Yong in Retail Facility Real Estate Fund No.1

    		      48,006        28,624  

    KTB Confidence Private Placement

    		      42,230        21,090  

    Meritz AI-SingA330-A Investment Type Private Placement Special Asset Fund

    		      28,286        1  

    Meritz AI-SingA330-B Investment Type Private Placement Special Asset Fund

    		      41,599        1  

    Pine Asia Unsecured Individual Rehabilitation Bond Fund 18

    		      26,316        14  

    Platform Partners brick save Private Investment trust

    		      8,441        271  

    Synergy-Shinhan Mezzanine New Technology Investment Fund

    		      10,500        3  

    The Asia Pacific Capital Fund II L.P.

    		      29,103        88  

    Shinhan Praxis K-Growth Global Private Equity Fund

    		      100,805        353  

    Credian Healthcare Private Equity Fund II

    		      11,236        47  

    Kiwoom Milestone Professional Private Real Estate Trust 19

    		      57,405        36,589  

    FG EURO GREEN PRIVATE REAL ESTATE TRUST No.3

    		      97,203        1,066  

    Brain Professional Private Trust No.4

    		      21,369        105  

    Hanhwa US Equity Strategy Private Real Estate Fund No.1

    		      56,898        78  

    Brain KS Qualified Privately Placed Fund No.6

    		      9,639        28  

    M360 CRE Income Fund

    		      265,945        —    

    Shinhan Global Healthcare Fund 1

    		      77,166        —    

    JB Power TL Investment Type Private Placement Special Asset Fund 7

    		      56,125        53  

    IBK AONE convertible 1

    		      10,840        —    

    Rico synergy collabo Multi-Mezzanine 3

    		      10,054        3  

     

     

         2017  

    Investees

    		    Asset      Liability  

    KB NA Hickory Private Special Asset Fund

    		    W 90,978        67  

    GB Professional Private Investment Trust 6

    		      9,101        1  

    Koramco Europe Core Private Placement Real Estate Fund No.2-2

    		      44,886        2,074  

    SHBNPP Private Korea Equity Long-Short Professional Feeder

    		      54,029        4,733  

    Shinhan-Stonebridge Petro PEF

    		      1,056,401        2,740  

    BNP Paribas Cardif General Insurance

    		      59,699        15,405  

    Axis Global Growth New Technology Investment Association

    		      15,553        —    

    Polaris No7 Start up and Venture Private Equity Fund

    		      15,280        22  

    Hermes Private Investment Equity Fund

    		      60,000        10  
      

     

     

    		     

     

     

    		  
       W 6,959,834        4,060,572  
      

     

     

    		     

     

     

    		  

     

     

    Condensed statement of comprehensive income information for years ended December 31, 2016 and 2017 were as follows:

     

         2016  

    Investees

    		    Operating
    revenue    		      Net profit
    (loss)    		     Other
    comprehensive
    income
    (loss)    		     Total
    comprehensive
    income
    (loss)    		  

    BNP Paribas Cardif Life Insurance

    		    W 144,583        (16,706 )      36,189       19,483  

    Aju Capital Co., Ltd.

    		      757,345        70,598       (458 )      70,140  

    Daewontos Co., Ltd.

    		      517        (624 )      —         (624 ) 

    Neoplux Technology Valuation Investment Fund

    		      3,441        2,295       —         2,295  

    JAEYOUNG SOLUTEC CO., LTD.

    		      137,920        (7,095 )      (614 )      (7,709 ) 

    Partners 4th Growth Investment Fund

    		      113        (1,300 )      —         (1,300 ) 

    JAEYANG INDUSTRY

    		      212        (69 )      —         (69 ) 

    Chungyoung INC

    		      —          —         —         —    

    DAEKWANG SEMICONDUCTOR CO., LTD.

    		      —          —         —         —    

    SHC-IMM New Growth Fund

    		      855        479       —         479  

    Dream High Fund III

    		      535        313       2,597       2,910  

    Albatross Growth Fund

    		      1,024        957       (3,821 )      (2,864 ) 

    Asia Pacific No.39 Ship Investment Co., Ltd.

    		      730        681       1,172       1,853  

    SG No.9 Corporate Recovery Private Equity Fund

    		      —          428       —         428  

    Plutus-SG Private Equity Fund

    		      5        (148 )      —         (148 ) 

    SG ARGES Private Equity Fund No.1

    		      —          87       —         87  

    Eum Private Equity Fund No.3

    		      85        (235 )      —         (235 ) 

    The Asia Pacific Capital Fund II L.P.

    		      —          (29,768 )      (13,407 )      (43,175 ) 

    Korea Investment Gong-pyeong Office Real Estate Investment Trust 2nd

    		      2,170        2,170       —         2,170  

    Shinhan Praxis K-Growth Global Private Equity Fund

    		      513        (1,084 )      2,656       1,572  

    Credian Healthcare Private Equity Fund II

    		      190        (180 )      —         (180 ) 

    Kiwoom Milestone Professional Private Real Estate Trust 19

    		      924        (367 )      —         (367 ) 

    FG EURO GREEN PRIVATE REAL ESTATE TRUST No.3

    		      10,321        2,210       7,669       9,879  

    Brain Professional Private Trust No.4

    		      2,158        1,148       —         1,148  

    Hanhwa US Equity Strategy Private Real Estate Fund No.1

    		      5,199        1,667       37       1,704  

    Brain KS Qualified Privately Placed Fund No.6

    		      1        (26 )      (182 )      (208 ) 

    M360 CRE Income Fund

    		      —          —         —         —    

    SHBNPP Private Korea Equity Long-Short Professional Feeder

    		      25,736        (396 )      —         (396 ) 

    SHBNPP Private Multi Strategy Professional Feeder No.1

    		      4,510        70       —         70  

    Shinhan-Stonebridge Petro PEF

    		      38,898        35,559       —         35,559  
      

     

     

    		     

     

     

    		    

     

     

    		    

     

     

    		  
       W 1,137,985        60,664       31,838       92,502  
      

     

     

    		     

     

     

    		    

     

     

    		    

     

     

    		  

     

     

         2017  

    Investees

    		    Operating
    revenue    		     Net profit
    (loss)    		     Other
    comprehensive
    income (loss)    		     Total
    comprehensive
    income (loss)    		  

    BNP Paribas Cardif Life Insurance

    		    W 78,010       24,230       (73,495 )      (49,265 ) 

    Daewontos Co., Ltd.

    		      —         —         —         —    

    Neoplux Technology Valuation Investment Fund

    		      5,895       4,691       1,471       6,162  

    JAEYOUNG SOLUTEC CO., LTD.

    		      142,228       (22,756 )      2,764       (19,992 ) 

    Partners 4th Growth Investment Fund

    		      137       (1,540 )      —         (1,540 ) 

    JAEYANG INDUSTRY

    		      —         —         —         —    

    Chungyoung INC

    		      5,568       (693 )      —         (693 ) 

    DAEKWANG SEMICONDUCTOR CO., LTD.

    		      13,929       (4,549 )      —         (4,549 ) 

    Dream High Fund III

    		      27       (200 )      (1,522 )      (1,722 ) 

    Asia Pacific No.39 Ship Investment Co., Ltd.

    		      666       616       32       648  

    KCLAVIS Meister Fund No.17

    		      425       194       —         194  

    SG No.9 Corporate Recovery Private Equity Fund

    		      (157 )      652       —         652  

    Plutus-SG Private Equity Fund

    		      317       316       —         316  

    SG ARGES Private Equity Fund No.1

    		      (351 )      832       —         832  

    OST Progress- 2 Fund

    		      (234 )      (234 )      —         (234 ) 

    Eum Private Equity Fund No.3

    		      1,614       1,649       —         1,649  

    Richmond Private Yong in Retail Facility Real Estate Fund No.1

    		      2,265       2,100       —         2,100  

    KTB Confidence Private Placement

    		      1,604       1,242       3,629       4,871  

    Meritz AI-SingA330-A Investment Type Private Placement Special Asset Fund

    		      1,914       1,913       (856 )      1,057  

    Meritz AI-SingA330-B Investment Type Private Placement Special Asset Fund

    		      3,117       3,116       (1,257 )      1,859  

    Pine Asia Unsecured Individual Rehabilitation Bond Fund 18

    		      648       634       —         634  

    Platform Partners brick save Private Investment trust

    		      207       194       —         194  

    Synergy-Shinhan Mezzanine New Technology Investment Fund

    		      —         (3 )      —         (3 ) 

    The Asia Pacific Capital Fund II L.P.

    		      —         (3,582 )      (10,269 )      (13,851 ) 

    Shinhan Praxis K-Growth Global Private Equity Fund

    		      7,273       (8,428 )      3,156       (5,272 ) 

    Credian Healthcare Private Equity Fund II

    		      211       19       (823 )      (804 ) 

    Kiwoom Milestone Professional Private Real Estate Trust 19

    		      2,742       (262 )      —         (262 ) 

    FG EURO GREEN PRIVATE REAL ESTATE TRUST No.3

    		      5,851       3,012       (2,713 )      299  

    Brain Professional Private Trust No.4

    		      2,942       1,925       —         1,925  

    Hanhwa US Equity Strategy Private Real Estate Fund No.1

    		      11,562       3,549       (37 )      3,512  

    Brain KS Qualified Privately Placed Fund No.6

    		      3       (110 )      (72 )      (182 ) 

    M360 CRE Income Fund

    		      7       14,179       —         14,179  

    Shinhan Global Healthcare Fund 1

    		      3       (757 )      —         (757 ) 

    JB Power TL Investment Type Private Placement Special Asset Fund 7

    		      7,115       1,267       —         1,267  

    IBK AONE convertible 1

    		      279       258       —         258  

    Rico synergy collabo Multi-Mezzanine 3

    		      371       50       —         50  

     

     

         2017  

    Investees

    		    Operating
    revenue    		     Net profit
    (loss)    		     Other
    comprehensive
    income (loss)    		     Total
    comprehensive
    income (loss)    		  

    KB NA Hickory Private Special Asset Fund

    		    W 11,092       1,945       —         1,945  

    GB PROFESSIONAL PRIVATE INVESTMENT TRUST 6

    		      1       —         —         —    

    Koramco Europe Core Private Placement Real Estate Fund No.2-2

    		      2,503       (1,337 )      —         (1,337 ) 

    SHBNPP Private Korea Equity Long-Short Professional Feeder

    		      28,956       9,356       —         9,356  

    Shinhan-Stonebridge Petro PEF

    		      39,170       39,170       —         39,170  

    BNP Paribas Cardif General Insurance

    		      10,093       (9,294 )      94       (9,200 ) 

    Axis Global Growth New Technology Investment Association

    		      (147 )      (147 )      —         (147 ) 

    Polaris No7 Start up and Venture Private Equity Fund

    		      (142 )      (142 )      —         (142 ) 

    Hermes Private Investment Equity Fund

    		      (10 )      (10 )      —         (10 ) 
      

     

     

    		    

     

     

    		    

     

     

    		    

     

     

    		  
       W 387,704       63,065       (79,898 )      (16,833 ) 
      

     

     

    		    

     

     

    		    

     

     

    		    

     

     

    		  

     

     

      (d) Reconciliation of the financial information to the carrying values of its interests in the associates as of December 31, 2016 and 2017 are as follow:

     

         2016  

    Investees

    		    Net assets
    (a)    		     Ownership
    (%)
    (b)    		      Interests
    in the net
    assets
    (a)*(b)    		     Intra-group
    transactions    		     Other     Carrying
    Value    		  

    BNP Paribas Cardif Life Insurance

    		    W 402,951       14.99        60,443       (230 )      —         60,213  

    Aju Capital Co., Ltd. (*1)

    		      749,882       12.85        96,365       —         (55,529 )      40,836  

    Daewontos Co., Ltd. (*2)

    		      (2,093 )      36.33        (760 )      —         760       —    

    Neoplux Technology Valuation Investment Fund

    		      22,577       33.33        7,526       —         —         7,526  

    JAEYOUNG SOLUTEC CO., LTD. (*3)

    		      34,147       10.45        3,567       —         2,169       5,736  

    Partners 4th Growth Investment Fund

    		      18,221       25.00        4,555       —         —         4,555  

    JAEYANG INDUSTRY (*5)

    		      (2,571 )      25.90        (666 )      —         666       —    

    Chungyoung INC (*4)

    		      (4,412 )      18.94        (836 )      —         836       —    

    DAEKWANG SEMICONDUCTOR CO., LTD.

    		      22,812       20.94        4,776       —         —         4,776  

    SHC-IMM New Growth Fund

    		      3,559       64.52        2,295       —         —         2,295  

    Dream High Fund III

    		      5,765       54.55        3,144       —         —         3,144  

    Albatross Growth Fund

    		      4,322       36.36        1,572       —         —         1,572  

    Asia Pacific No.39 Ship Investment Co., Ltd.

    		      10,351       50.00        5,176       —         —         5,176  

    SG No.9 Corporate Recovery Private Equity Fund

    		      15,031       26.49        3,982       —         —         3,982  

    Plutus-SG Private Equity Fund

    		      16,120       26.67        4,299       —         —         4,299  

    SG ARGES Private Equity Fund No.1

    		      37,301       24.06        8,976       —         —         8,976  

    Eum Private Equity Fund No.3

    		      28,580       20.76        5,933       —         —         5,933  

    The Asia Pacific Capital Fund II L.P.

    		      45,978       25.18        11,579       —         —         11,579  

    Korea Investment Gong-pyeong Office Real Estate Investment Trust 2nd

    		      927       50.00        464       —         —         464  

    Shinhan Praxis K-Growth Global Private Equity Fund

    		      71,725       18.87        13,533       —         —         13,533  

    Credian Healthcare Private Equity Fund II

    		      11,993       34.07        4,087       —         —         4,087  

    Kiwoom Milestone Professional Private Real Estate Trust 19

    		      21,523       50.00        10,761       —         —         10,761  

    FG EURO GREEN PRIVATE REAL ESTATE TRUST No.3

    		      99,791       21.28        21,237       —         —         21,237  

    Brain Professional Private Trust No.4

    		      19,338       27.49        5,316       —         —         5,316  

    Hanhwa US Equity Strategy Private Real Estate Fund No.1

    		      57,454       44.84        25,764       —         —         25,764  

    Brain KS Qualified Privately Placed
    Fund No.6

    		      9,793       50.00        4,896       —         —         4,896  

    M360 CRE Income Fund

    		      54,094       42.83        23,167       —         —         23,167  

     

     

         2016  

    Investees

    		    Net assets
    (a)    		      Ownership
    (%)
    (b)    		      Interests
    in the net
    assets
    (a)*(b)    		      Intra-group
    transactions    		     Other     Carrying
    value    		  

    SHBNPP Private Korea Equity Long Short Professional Feeder

    		    W 89,256        15.88        14,180        —         —         14,180  

    SHBNPP Private Multi Strategy Professional Feeder No.1

    		      16,985        29.55        5,014        —         —         5,014  

    Shinhan-Stonebridge Petro PEF

    		      1,014,495        1.82        18,487        —         —         18,487  

    Others

    		      158,356        —          35,507        —         589       36,096  
      

     

     

    		        

     

     

    		     

     

     

    		    

     

     

    		    

     

     

    		  
       W 3,034,251           404,339        (230 )      (50,509 )      353,600  
      

     

     

    		        

     

     

    		     

     

     

    		    

     

     

    		    

     

     

    		  

     

    (*1) Net assets do not include non-controlling interests and other adjustments represent the cumulative impairment.
    (*2) Other adjustments represent the unrecognized equity method losses because the Group has stopped recognizing its equity method losses as the balance of the investment has been reduced to zero.
    (*3) Net assets do not include non-controlling interests; and other adjustments represent the difference between the cost of the investment and the Group’s interests in the net carrying value of the investee’s assets and liabilities at the investment date and the cumulative impairment.
    (*4) Other adjustments represent the difference between the cost of the investment and the Group’s interests in the net carrying value of the investee’s assets and liabilities at the investment date.
    (*5) Other adjustments represent the unrecognized equity method losses because the Group has stopped recognizing its equity method losses as the balance of the investment has been reduced to zero and the difference between the cost of the investment and the Group’s interests in the net carrying value of the investee’s assets and liabilities at the investment date.

     

     

        2017  

    Investees

    		   Net assets
    (a)    		     Ownership
    (%)
    (b)    		     Interests
    in the net
    assets
    (a)*(b)    		     Intra-group
    transactions    		     Other     Carrying
    Value    		  

    BNP Paribas Cardif Life Insurance

    		   W 351,986       14.99       52,763       (147 )      —         52,616  

    Daewontos Co., Ltd (*1)

    		     (2,092 )      36.33       (760 )      —         760       —    

    Neoplux Technology Valuation Investment Fund

    		     40,409       33.33       13,470       —         —         13,470  

    JAEYOUNG SOLUTEC CO., LTD (*2)

    		     17,484       9.61       1,680       —         2,169       3,849  

    Partners 4th Growth Investment Fund

    		     53,561       25.00       13,390       —         —         13,390  

    JAEYANG INDUSTRY (*3)

    		     (2,571 )      25.90       (666 )      —         666       —    

    Chungyoung INC (*3)

    		     (5,100 )      18.94       (966 )      —         966       —    

    DAEKWANG SEMICONDUCTOR CO., LTD.

    		     18,263       20.94       3,824       —         —         3,824  

    Dream High Fund III

    		     4,042       54.55       2,205       —         —         2,205  

    Asia Pacific No.39 Ship Investment Co., Ltd.

    		     9,362       50.00       4,682       —         —         4,682  

    KCLAVIS Meister Fund No.17

    		     11,652       26.09       3,039       —         —         3,039  

    SG No.9 Corporate Recovery Private Equity Fund

    		     14,959       26.49       3,963       —         —         3,963  

    Plutus-SG Private Equity Fund

    		     15,940       26.67       4,251       —         —         4,251  

    SG ARGES Private Equity Fund No.1

    		     26,689       24.06       6,422       —         —         6,422  

    OST Progress- 2 Fund

    		     17,722       27.62       4,895       —         —         4,895  

    Eum Private Equity Fund No.3

    		     23,720       20.76       4,925       —         —         4,925  

    Richmond Private Yong in Retail Facility Real Estate Fund No.1

    		     19,382       41.80       8,101       —         —         8,101  

    KTB Confidence Private Placement

    		     21,140       30.29       6,403       —         —         6,403  

    Meritz AI-SingA330-A Investment Type Private Placement Special Asset Fund

    		     28,285       23.89       6,757       —         —         6,757  

    Meritz AI-SingA330-B Investment Type Private Placement Special Asset Fund

    		     41,598       20.16       8,387       —         —         8,387  

    Pine Asia Unsecured Individual Rehabilitation Bond Fund 18

    		     26,302       22.86       6,012       —         —         6,012  

    Platform Partners brick save Private Investment trust

    		     8,170       98.77       8,069       —         —         8,069  

    Synergy-Shinhan Mezzanine New Technology Investment Fund

    		     10,497       47.62       4,999       —         —         4,999  

    The Asia Pacific Capital Fund II L.P.

    		     29,015       25.18       7,307       —         —         7,307  

    Shinhan Praxis K-Growth Global Private Equity Fund

    		     100,452       18.87       18,954       —         —         18,954  

    Credian Healthcare Private Equity Fund II

    		     11,189       34.07       3,813       —         —         3,813  

    Kiwoom Milestone Professional Private Real Estate Trust 19

    		     20,816       50.00       10,408       —         —         10,408  

    FG EURO GREEN PRIVATE REAL ESTATE TRUST No.3

    		     96,137       21.28       20,460       —         —         20,460  

    Brain Professional Private Trust No.4

    		     21,264       27.49       5,847       —         —         5,847  

    Hanhwa US Equity Strategy Private Real Estate Fund No.1

    		     56,820       44.84       25,479       —         —         25,479  

    Brain KS Qualified Privately Placed Fund No.6

    		     9,611       50.00       4,805       —         —         4,805  

     

     

        2017  

    Investees

    		   Net assets
    (a)    		     Ownership
    (%)
    (b)    		     Interests
    in the net
    assets
    (a)*(b)    		     Intra-group
    transactions    		     Other     Carrying
    Value    		  

    M360 CRE Income Fund

    		   W 265,945       57.87       153,905       —         —         153,905  

    Shinhan Global Healthcare Fund 1

    		     77,166       4.41       3,407       —         —         3,407  

    JB Power TL Investment Type Private Placement Special Asset Fund 7

    		     56,072       33.33       18,690       —         —         18,690  

    IBK AONE convertible 1

    		     10,840       47.25       5,122       —         —         5,122  

    Rico synergy collabo Multi-Mezzanine 3

    		     10,051       50.00       5,026       —         —         5,026  

    KB NA Hickory Private Special Asset Fund

    		     90,911       37.50       34,091       —         —         34,091  

    GB Professional Private Investment Trust 6

    		     9,100       94.51       8,600       —         —         8,600  

    Koramco Europe Core Private Placement Real Estate Fund No.2-2

    		     42,812       48.49       20,760       —         —         20,760  

    SHBNPP Private Korea Equity Long-Short Professional Feeder

    		     49,296       9.85       4,861       —         —         4,861  

    Shinhan-Stonebridge Petro PEF

    		     1,053,661       1.82       19,201       —         —         19,201  

    BNP Paribas Cardif General Insurance

    		     44,294       10.00       4,429       —         —         4,429  

    Axis Global Growth New Technology Investment Association

    		     15,553       31.85       4,953       —         —         4,953  

    Polaris No7 Start up and Venture Private Equity Fund

    		     15,258       28.57       4,359       —         —         4,359  

    Hermes Private Investment Equity Fund

    		     59,990       29.17       17,497       —         —         17,497  

    Others

    		     218,647       —         58,362       —         699       59,061  
     

     

     

    		      

     

     

    		    

     

     

    		    

     

     

    		    

     

     

    		  
      W 3,116,300         626,181       (147 )      5,260       631,294  
     

     

     

    		      

     

     

    		    

     

     

    		    

     

     

    		    

     

     

    		  

     

    (*1) Other adjustments represent the unrecognized equity method losses because the Group has stopped recognizing its equity method losses as the balance of the investment has been reduced to zero.
    (*2) Net assets do not include non-controlling interests and other adjustments represent the difference between the cost of the investment and the Group’s interests in the net carrying value of the investee’s assets and liabilities at the investment date.
    (*3) Other adjustments represent the unrecognized equity method losses because the Group has stopped recognizing its equity method losses as the balance of the investment has been reduced to zero and the difference between the cost of the investment and the Group’s interests in the net carrying value of the investee’s assets and liabilities at the investment date.

     

     

      (e) The unrecognized equity method losses for the year ended December 31, 2017 and the cumulative unrecognized equity method losses as of December 31, 2017 are as follows:

     

         2017  

    Investees

    		    Unrecognized equity
    method losses    		      Cumulative unrecognized
    equity method losses    		  

    Daewontos Co., Ltd.

    		    W —          (760 ) 

    JAEYANG INDUSTRY

    		      —          (18 ) 

    Chungyoung INC

    		      (130)        (130 ) 
      

     

     

    		     

     

     

    		  
       W (130)        (908 )