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<SEC-DOCUMENT>0001145549-04-000657.txt : 20040519
<SEC-HEADER>0001145549-04-000657.hdr.sgml : 20040519
<ACCEPTANCE-DATETIME>20040519063304
ACCESSION NUMBER:		0001145549-04-000657
CONFORMED SUBMISSION TYPE:	6-K
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20040519
FILED AS OF DATE:		20040519

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			SHINHAN FINANCIAL GROUP CO LTD
		CENTRAL INDEX KEY:			0001263043
		STANDARD INDUSTRIAL CLASSIFICATION:	NATIONAL COMMERCIAL BANKS [6021]
		IRS NUMBER:				000000000

	FILING VALUES:
		FORM TYPE:		6-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-31798
		FILM NUMBER:		04817345

	BUSINESS ADDRESS:	
		STREET 1:		120 2-GA TAEPYUNG RO JUNG GU
		CITY:			SEOUL100-102
		STATE:			F4
		ZIP:			00000
		BUSINESS PHONE:		82263603000
</SEC-HEADER>
<DOCUMENT>
<TYPE>6-K
<SEQUENCE>1
<FILENAME>u99048e6vk.txt
<DESCRIPTION>SHINHAN FINANCIAL GROUP CO., LTD.
<TEXT>
<PAGE>
                       SECURITIES AND EXCHANGE COMMISSION
                              Washington, DC 20549

                                    FORM 6-K

                        REPORT OF FOREIGN PRIVATE ISSUER
                      Pursuant to Rule 13a-16 or 15d-16 of
                       the Securities Exchange Act of 1934

                            For the Month of May 2004

                        SHINHAN FINANCIAL GROUP CO., LTD.
                 (Translation of registrant's name into English)

              120, 2-Ga, Taepyung-Ro, Jung-Gu, Seoul 100-102, 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   X      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  X
                            -----         -----

       If "Yes" is marked, indicate below the file number assigned to the
            registrant in connection with Rule 12g3-2(b): 82-_______.
<PAGE>
SUMMARY OF 2004 1ST QUARTER BUSINESS REPORT

On May 14, 2004, Shinhan Financial Group("SFG") filed the 2004 1st quarter
business report with the Financial Supervisory Commission of the Republic of
Korea ("Korea") pursuant to the Securities and Exchange Act of Korea (the
"Business Report"). This is the summary of the Business Report translated into
English. Non-material or previously disclosed information are omitted or
abridged.

The financial information in this report has been prepared in accordance with
accounting principles generally accepted in Korea.


TABLE OF CONTENTS

1. Introduction to the Group
2. Business
3. Independent Accountant
4. Performance of Affiliated Companies
5. Market Price Information of Our Equity Securities
6. Directors, Executive Officers and Employees

Exhibit 1. Independent Accountant's Review Report (Non Consolidated Financial
           Statements)

                                       2
<PAGE>
1. INTRODUCTION TO THE GROUP

COMPANY HISTORY

<TABLE>
<S>               <C>
- - May 2000        Establishment of the Shinhan Financial Group announced.
- - Oct. 2000       Secretariat for the incorporation of SFG established
- - Jun. 2001       BOD of Shinhan Bank, Shinhan Securities, Shinhan Capital and
                  Shinhan ITM approved a transition to the holding company
                  structure/Signed a strategic alliance MOU with BNP Paribas
- - Jul. 2001       Preliminary license granted
- - Aug. 2001       Shareholders' Meeting of Shinhan Bank, Shinhan Securities,
                  Shinhan Capital and Shinhan ITM approved stock transfer
- - Aug. 2001       Official license granted
- - Sep. 2001       Registered SFG incorporation (Capital stock: KRW 1.4617
                  trillion)/e-Shinhan and Shinhan Macquarie Financial Advisory
                  co. became subsidiaries of the SFG
- - Dec. 2001       Signed the strategic alliance agreement with BNP Paribas
- - Apr. 2002       Announced the acquisition of the Good Morning Securities/
                  Established an Integration Committee to coordinate the merger
                  between Shinhan Securities and Good Morning Securities
- - May 2002        Jeju Bank included as SFG subsidiary
- - Jun. 2002       Credit card division of Shinhan Bank was spun off and
                  established as a wholly-owned subsidiary, Shinhan Card.
- - Jul. 2002       Incorporated Shinhan Credit Information Co.,Ltd
- - Aug. 2002       Good Morning-Shinhan Securities Launched and subsequently
                  included as SFG subsidiary
- - Aug. 2002       Signed a strategic alliance agreement with BNP Paribas for
                  investment trust business
- - Aug. 2002       Shinhan Credit Information included as SFG subsidiary
- - Sep. 2002       Sold 50%-1 shares of Shinhan ITMC to BNP Paribas Asset
                  Management Group/Shinhan-BNP Paribas ITMC launched
- - Oct. 2002       SH&C Life Insurance, a bancassurance joint venture
                  incorporated and included as the Group subsidiary
- - Jun. 2003       Sold 49% equity share of Shinhan Credit Information to Lone
                  Star Fund
- - Aug. 2003       Acquired 80.04% equity ownership of Chohung Bank(CHB) from the
                  Korea Deposit Insurance Corporation
</TABLE>

                                       3
<PAGE>
<TABLE>
<S>               <C>
- - Sep. 2003       SFG's inclusion of CHB as its subsidiary officially granted
- - Sep. 2003       Registered with the U.S. Securities Exchange Commission and
                  listed on the New York Stock Exchange
- - Nov. 2003       Acquired a bank holding company license in the US market from
                  the Federal Reserve Board
- - Dec. 2003       Additional Capital injection into CHB (KRW 200 billion)
- - Mar. 2004       Shinhan Bank sold out 29,873,359 common shares (Common Shares)
                  or 10.15% of Shinhan Financial Group through the block trading
                  before market opens (The Common Shares used to be recognized
                  as treasury shares in our consolidated financial statements)
- - Apr. 2004       Decided to acquire the minority common shares (135,548,285 or
                  18.85% of total common shares) of CHB by the end of June 2004
                  through the small-scale share
                  * Exchange ratio: 1 SFG common share = 0.1354 CHB common share
- - Apr. 2004       Provided a tender offer for the 20% or 27,109,657 shares of
                  the Chohung minority shares before the share swap
                  * Tender offer price: KRW 3,500 per share
                  * Tender offer period: April 26, 2004 ~ May 17, 2004
- - Apr. 2004       Decided to terminate the joint venture in the credit
                  information business and to buy back Lone Star's 49% ownership
                  in Shinhan Credit Information.
</TABLE>


PRINCIPAL SUBSIDIARIES UNDER KOREAN LAW AS OF MARCH 31, 2004

     DIRECT SUBSIDIARIES

<TABLE>
<CAPTION>
- -----------------------------------------   ---------------------------
         Subsidiaries                            Ownerships by SFG
- -----------------------------------------   ---------------------------
<S>                                         <C>
Shinhan Bank                                           100.0%
Chohung Bank 1)                                         81.2%
Goodmorning Shinhan Securities 1)                      59.02% 2)
Shinhan Card                                           100.0%
Shinhan Capital                                        100.0%
Shinhan BNP Paribas ITMC                                50.0%
Jeju Bank 1)                                            62.4%
SH&C life Insurance                                     50.0%
e-Shinhan                                               73.7%
Shinhan Macquarie                                       51.0%
Shinhan Credit Information 3)                           51.0%
- -----------------------------------------------------------------------
</TABLE>

1.   Chohung Bank, Goodmorning Shinhan Securities, and Jeju Bank are listed on
     the Korea Stock Exchange.

2.   Represents our ownership percentage of voting equity securities of
     Goodmorning

                                       4
<PAGE>
     Shinhan Securities. Currently, both common and preferred stock of
     Goodmorning Shinhan Securities has voting rights. We own 60.5% of common
     stock of Goodmorning Shinhan Securities.

3.   On April 29, 2004 we decided to buy back Lone Star's 49 % ownership in
     Shinhan Credit Information. With this transaction our equity ownership of
     Shinhan Credit Information will be increased to 100%.


INDIRECT SUBSIDIARIES HELD THROUGH DIRECT SUBSIDIARIES

<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------
                                                                         Ownerships by
Direct Subsidiaries               Indirect Subsidiaries                    the Parent
- -------------------      -----------------------------------------       -------------
<S>                      <C>                                             <C>
Shinhan Bank             Shinhan Data System 1)                              100.0%
                         Shinhan Finance                                     100.0%
Chohung Bank             Chohung ITM                                          79.8%
                         Chohung Finance                                     100.0%
                         CHB America Bank                                    100.0%
                         Chohung Bank GmbH                                   100.0%
                         Chohung Vina Bank                                    50.0%
                         CHB Valuemeet 2001 year 1st Securitization           50.0%
                         CHB Valuemeet 2001 year 2nd Securitization           50.0%
                         CHB Valuemeet 2002 year 1st Securitization           50.0%
Goodmorning              Goodmorning Shinhan Securities Europe               100.0%
Shinhan Securities       Goodmorning Shinhan Securities USA                  100.0%
- --------------------------------------------------------------------------------------
</TABLE>

1.   Shinhan System changed its corporate name to Shinhan Data System on October
     8, 2003.


CAPITALIZATION

     The table below sets forth the changes to the number of issued and
outstanding shares of the Group since its incorporation on September 1, 2001.

<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
                                                                                                   Subscription
                                                                        Number of     Par Value     price per     Total amount of
Date of issuance     Purpose of issuance         Types of shares      shares issued    (KRW)         share      capital stock (KRW)
- ------------------------------------------------------------------------------------------------------------------------------------
<S>                 <C>                          <C>                  <C>             <C>          <C>          <C>
2001.Sept.01        Incorporation                Common Shares         292,344,192      5,000          11,761     1,461,720,960,000
2002.Jun.06         Share Exchange(1)            Common Shares              15,891      5,000               -     1,461,800,415,000
2002.Oct.01         Share Exchange(1)            Common Shares                 786      5,000               -     1,461,804,345,000
2002.Dec.31         Share Exchange(1)            Common Shares                 256      5,000               -     1,461,805,625,000
2003.Aug.19         Cash Subscription(2)         Preferred Shares        6,000,000      5,000         150,000     1,491,805,625,000
2003.Aug.19         Share Exchange(3)            Preferred Shares       46,583,961      5,000          18,086     1,724,725,430,000
2003.Aug.19         Share Exchange(4)            Preferred Shares       44,720,603      5,000          18,086     1,948,328,445,000
2003.Sept.26        Cash Subscription(5)         Common Shares           1,864,065      5,000          14,832     1,957,648,770,000
2003.Oct.01         Share Exchange(1)            Common Shares              11,626      5,000               -     1,957,706,900,000
2003.Dec.31         Share Exchange(1)            Common Shares             164,484      5,000               -     1,958,529,320,000
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>

     1.   Issued in exchange for Shinhan Bank's common shares which were issued
          as a result of an exercise of warrants by the holders of bonds with
          warrants.

                                       5
<PAGE>
     2.   Redeemable preferred shares issued to a third party to raise cash for
          the Group's purchase of Chohung Bank shares which were held by Korean
          Deposit Insurance Corporation.

     3.   Redeemable preferred shares issued as consideration for the Group's
          purchase of Chohung Bank shares which were held by Korea Deposit
          Insurance Corporation.

     4.   Redeemable convertible preferred shares issued as consideration for
          the Group's purchase of Chohung Bank shares which were held by Korea
          Deposit Insurance Corporation.

     5.   BNP Paribas Luxembourg subscribed for 1,864,065 shares of the Group's
          common stock to maintain its 4% equity ownership on a fully diluted
          basis taking into account the full conversion of the 44,720,603 shares
          of redeemable convertible preferred shares issued by the Group to
          Korea Deposit Insurance Corporation.


FUTURE CAPITAL INCREASE
Shinhan Financial Group, currently holding 81.15% ownership of Chohung Bank
decided to acquire the minority common shares (18.85% of total Chohung common
shares or 135,548,285) of Chohung Bank by the end of June 2004 through the
small-scale share swap pursuant to the resolution of the BOD meeting held on
April 12, 2004. With this transaction, the Common Stock of Shinhan Financial
Group is expected to increase by a maximum of 18,411,984 shares or KRW
92,059,920,000 (par value KRW 5,000 per share).


NUMBER OF SHARES BY TYPE
The table below sets forth the number of the issued and outstanding shares of
the Group as of March 31, 2004.

<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------
                                                                       Total amount of
         Types of Shares                     Number of Shares             par value
- ---------------------------------------      ----------------         -----------------
<S>                                          <C>                      <C>
Common Shares                                   294,401,300           1,472,006,500,000
Redeemable Preferred Shares                      52,583,961             262,919,805,000
Redeemable Convertible Preferred Shares          44,720,603             223,603,015,000
- ---------------------------------------      ----------------         -----------------
     Total                                      391,705,864           1,958,529,320,000
- ---------------------------------------------------------------------------------------
</TABLE>


STOCK OPTIONS

<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------
                                            Number of   Number of      Number of   Exercise
                    Name of the              Granted    Exercised     Exercisable   Price
  Grant date         Guarantee                Option     option         option       (KRW)        Positions held at
- ------------------------------------------------------------------------------------------------------------------------
<S>              <C>                        <C>         <C>           <C>          <C>        <C>
   22-May-02     Ra, Eung-Chan               100,000         -          100,000     18,910    Shinhan Financial Group
   22-May-02     Lee, In-Ho                   80,000         -           80,000     18,910    Shinhan Financial Group
   22-May-02     Choi, Young Hwi              50,000         -           50,000     18,910    Shinhan Financial Group
- ------------------------------------------------------------------------------------------------------------------------
</TABLE>

                                       6
<PAGE>
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------
                                            Number of   Number of      Number of   Exercise
                    Name of the              Granted    Exercised     Exercisable   Price
  Grant date         Guarantee                Option     option         option       (KRW)        Positions held at
- ------------------------------------------------------------------------------------------------------------------------
<S>              <C>                        <C>         <C>           <C>          <C>        <C>
   22-May-02     Choi, Bhang-Gil              20,000         -           20,000     18,910    Shinhan Financial Group
   22-May-02     Han, Min Ky                   1,000         -            1,000     18,910    Shinhan Financial Group
   22-May-02     Song, Youn Soo                2,500         -            2,500     18,910    Shinhan Financial Group
   22-May-02     Shin, Sang Hoon              30,000         -           30,000     18,910    Shinhan Bank
   22-May-02     Moon, Hong Soon              20,000         -           20,000     18,910    Shinhan Bank
   22-May-02     Oh, Young-Kook               20,000         -           20,000     18,910    Shinhan Bank (retired)
   22-May-02     Lee, Jae Woo                 20,000         -           20,000     18,910    Shinhan Bank
   22-May-02     Nam, Kee Do                  20,000         -           20,000     18,910    Shinhan Bank (retired)
   22-May-02     Huh, Joong Ok                20,000         -           20,000     18,910    Shinhan Bank
   22-May-02     Kim, Sahng-Dae               20,000         -           20,000     18,910    Shinhan Bank
   22-May-02     Jang, Myoung-Kee             20,000         -           20,000     18,910    Shinhan Bank
   22-May-02     Youn, Gwang Lim              20,000         -           20,000     18,910    Shinhan Bank
   22-May-02     Shin, Christoper             15,000         -           15,000     18,910    Shinhan Bank
   22-May-02     Lee, Dae Woon                15,000         -           15,000     18,910    Shinhan Bank
   22-May-02     Lee, Dong Girl               30,000         -           30,000     18,910    Shinhan Capital
   22-May-02     Son, Woong Man               10,000         -           10,000     18,910    Shinhan Capital
   22-May-02     Hwang, Jung Hun              10,000         -           10,000     18,910    Shinhan Capital (retired)
   22-May-02     Jung, Yun Kang               10,000         -           10,000     18,910    Shinhan Capital
   22-May-02     Shin, Beom Seong              2,500         -            2,500     18,910    Shinhan Credit Information
   22-May-02     Song, Byung Kuk and          12,000         -           12,000     18,910                 -
                  other 5 officers
   22-May-02     Kim, Duk Jung and           456,200         -          456,200     18,910                 -
                  other 323 officers
   15-May-03     Ra, Eung-Chan               100,000         -          100,000     11,800    Shinhan Financial Group
   15-May-03     Choi, Young Hwi              90,000         -           90,000     11,800    Shinhan Financial Group
   15-May-03     Choi, Bhang-Gil              20,000         -           20,000     11,800    Shinhan Financial Group
   15-May-03     Han, Min Ky                  20,000         -           20,000     11,800    Shinhan Financial Group
   15-May-03     Song, Youn Soo               20,000         -           20,000     11,800    Shinhan Financial Group
   15-May-03     Shin, Sang Hoon              80,000         -           80,000     11,800    Shinhan Bank
   15-May-03     Moon, Hong Soon              20,000         -           20,000     11,800    Shinhan Bank
   15-May-03     Lee, Jae Woo                 20,000         -           20,000     11,800    Shinhan Bank
   15-May-03     Huh, Joong Ok                20,000         -           20,000     11,800    Shinhan Bank
   15-May-03     Kim, Sahng-Dae               20,000         -           20,000     11,800    Shinhan Bank
   15-May-03     Youn, Gwang Lim              20,000         -           20,000     11,800    Shinhan Bank
   15-May-03     Cho, Woo Seop                20,000         -           20,000     11,800    Shinhan Bank
   15-May-03     Kim, Hee Soo                 20,000         -           20,000     11,800    Shinhan Bank
   15-May-03     Han, Do Heui                 20,000         -           20,000     11,800    Shinhan Bank
   15-May-03     Shin, Christoper             15,000         -           15,000     11,800    Shinhan Bank
   15-May-03     Lee, Dae Woon                15,000         -           15,000     11,800    Shinhan Bank
   15-May-03     Hong Sung Kyun               30,000         -           30,000     11,800    Shinhan Card
   15-May-03     Lee Tae Kyu                  10,000         -           10,000     11,800    Shinhan Card
   15-May-03     Kim Seong Won                10,000         -           10,000     11,800    Shinhan Card
   15-May-03     Shim, Woo Yeob               10,000         -           10,000     11,800    Shinhan Card
   15-May-03     Lee, Dong Girl               30,000         -           30,000     11,800    Shinhan Capital
   15-May-03     Jung, Yun Kang               10,000         -           10,000     11,800    Shinhan Capital
   15-May-03     Jang, Myoung-Kee             10,000         -           10,000     11,800    Shinhan Capital
   15-May-03     Shim, Beom Seong             10,000         -           10,000     11,800    Shinhan Credit Information
   15-May-03     Song, Byung Kuk and          14,600         -           14,600     11,800                 -
                  other 7 officers
   15-May-03     Seo, Jin Won and            501,700         -          501,700     11,800                 -
                  other 340 officers
</TABLE>

                                       7
<PAGE>
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------
                                            Number of   Number of      Number of   Exercise
                    Name of the              Granted    Exercised     Exercisable   Price
  Grant date         Guarantee                Option     option         option       (KRW)        Positions held at
- ------------------------------------------------------------------------------------------------------------------------
<S>              <C>                        <C>         <C>           <C>          <C>        <C>
   25-Mar-04     Ra, Eung Chan               100,000                    100,000     21,595    Shinhan Financial Group
   25-Mar-04     Choi, Young Hwi              90,000                     90,000     21,595    Shinhan Financial Group
   25-Mar-04     Choi, Bhang Gil              30,000                     30,000     21,595    Shinhan Financial Group
   25-Mar-04     Hong, Chil Sun               20,000                     20,000     21,595    Shinhan Financial Group
   25-Mar-04     Kim, Hee Soo                 20,000                     20,000     21,595    Shinhan Financial Group
   25-Mar-04     Cho, Byung Jae               20,000                     20,000     21,595    Shinhan Financial Group
   25-Mar-04     Lee, Baek Soon               20,000                     20,000     21,595    Shinhan Financial Group
   25-Mar-04     Shin, Sang Hoon              80,000                     80,000     21,595    Shinhan Bank
   25-Mar-04     Cho, Jae Ho                  20,000                     20,000     21,595    Shinhan Bank
   25-Mar-04     Lee, Jae Woo                 20,000                     20,000     21,595    Shinhan Bank
   25-Mar-04     Youn, Gwang Lim              20,000                     20,000     21,595    Shinhan Bank
   25-Mar-04     Cho, Woo Sup                 20,000                     20,000     21,595    Shinhan Bank
   25-Mar-04     Han, Min Ky                  20,000                     20,000     21,595    Shinhan Bank
   25-Mar-04     Song, Youn Soo               20,000                     20,000     21,595    Shinhan Bank
   25-Mar-04     Han, Do Heui                 20,000                     20,000     21,595    Shinhan Bank
   25-Mar-04     Suh, Jin Won                 20,000                     20,000     21,595    Shinhan Bank
   25-Mar-04     Yang, Shin Keun              20,000                     20,000     21,595    Shinhan Bank
   25-Mar-04     Oh, Sang Young               15,000                     15,000     21,595    Shinhan Bank
   25-Mar-04     Hong, Sung Kyun              30,000                     30,000     21,595    Shinhan Card
   25-Mar-04     Lee, Tae Gyu                 10,000                     10,000     21,595    Shinhan Card
   25-Mar-04     Kim, Seong Won               10,000                     10,000     21,595    Shinhan Card
   25-Mar-04     Shim, Woo Yeob               10,000                     10,000     21,595    Shinhan Card
   25-Mar-04     Kim, Moon Han                10,000                     10,000     21,595    Shinhan Card
   25-Mar-04     Lee, Dong Girl               30,000                     30,000     21,595    Shinhan Capital
   25-Mar-04     Kim, Sahng Dae               10,000                     10,000     21,595    Shinhan Capital
   25-Mar-04     Oh, Seung Keun               10,000                     10,000     21,595    Shinhan Capital
   25-Mar-04     Shim, Beom Seong             10,000                     10,000     21,595    Shinhan Credit Information
   25-Mar-04     Song, Byung Kuk and          13,900                     13,900     21,595                 -
                  other 7 officers
   25-Mar-04     Kam, Hong Gon and           582,700                    582,700     21,595                 -
                  other 400 officers
     TOTAL          417 persons            3,462,100         -        3,462,100        -                   -
- ------------------------------------------------------------------------------------------------------------------------
</TABLE>

* The stock options granted in 2002 and 2003 are exercisable during the 4 year
period after the second anniversary from the grant date. The stock options
granted in 2004 are exercisable during 3 year period after the second
anniversary from the grant date.


2. BUSINESS

SOURCE AND USE OF FUNDS

SOURCE OF FUNDS

                                       8
<PAGE>
<TABLE>
<CAPTION>
                                                                                   (in millions of Korean Won)
- --------------------------------------------------------------------------------------------------------------
                                        2004                        2003                       2002
                                   (Jan.1~Mar.31)              (Jan.1~Dec.31)             (Jan.1~Dec.31)
                                -----------------------    ------------------------   ------------------------
                                 Average        Ratio        Average        Ratio       Average       Ratio
                                Balance 1)       (%)       Balance 1)        (%)      Balance 1)       (%)
- --------------------------------------------------------------------------------------------------------------
<S>                             <C>             <C>        <C>             <C>        <C>            <C>
Stockholders' Equity            6,238,169        72.59     4,768,492        73.82     3,877,215       89.45
- --------------------------------------------------------------------------------------------------------------
  Capital Stock                 1,958,529        22.79     1,660,319        25.70     1,461,770       33.72
- --------------------------------------------------------------------------------------------------------------
  Capital Surplus               3,316,380        38.59     2,512,502        38.89     1,976,637       45.60
- --------------------------------------------------------------------------------------------------------------
  Retained Earnings               819,108         9.53       692,409        10.72       379,170        8.75
- --------------------------------------------------------------------------------------------------------------
  Capital Adjustment              144,152         1.68       (96,738)       (1.50)       59,638        1.38
- --------------------------------------------------------------------------------------------------------------
Borrowings                      2,355,296        27.41     1,645,804        25.48       394,965        9.11
- --------------------------------------------------------------------------------------------------------------
  Debentures                    2,005,118        23.33     1,434,951        22.21       359,240        8.29
- --------------------------------------------------------------------------------------------------------------
  Other liabilities               350,178         4.07       256,424         3.97        98,119        2.26
- --------------------------------------------------------------------------------------------------------------
           Total                8,593,465       100.00     6,459,867       100.00     4,334,574      100.00
- --------------------------------------------------------------------------------------------------------------
</TABLE>

1.   The Average Balance was calculated by averaging the ending balance of each
     quarter.


USE OF FUNDS

<TABLE>
<CAPTION>
                                                                                   (in millions of Korean Won)
- --------------------------------------------------------------------------------------------------------------
                                          2004                       2003                      2002
                                      (Jan.1~Mar.31)            (Jan.1~Dec.31)            (Jan.1~Dec.31)
                                    ---------------------     ---------------------   ------------------------
                                     Average        Ratio       Average       Ratio       Average       Ratio
                                    Balance 1)       (%)      Balance 1)       (%)      Balance 1)       (%)
- --------------------------------------------------------------------------------------------------------------
<S>                                 <C>            <C>        <C>            <C>        <C>            <C>
Investments on equity stock          6,427,896      74.80      5,882,011      77.81      3,874,018      89.38
- --------------------------------------------------------------------------------------------------------------
  Shinhan Bank                       3,467,213      40.35      3,139,126      41.53      3,134,106      72.30
- --------------------------------------------------------------------------------------------------------------
  Chohung Bank 2)                    2,054,938      23.91      1,831,964      24.24              -          -
- --------------------------------------------------------------------------------------------------------------
  Goodmorning Shinhan
   Securities 3)                       550,122       6.40        537,265       7.11        447,117      10.32
- --------------------------------------------------------------------------------------------------------------
  Shinhan Card                         160,791       1.87        191,094       2.53        149,800       3.46
- --------------------------------------------------------------------------------------------------------------
  Shinhan Capital                      105,825       1.23         95,384       1.26         71,171       1.64
- --------------------------------------------------------------------------------------------------------------
  Shinhan BNP Paribas                   22,768       0.26         22,109       0.29         39,010       0.90
- --------------------------------------------------------------------------------------------------------------
  E-Shinhan                              2,738       0.03          3,331       0.04          4,281       0.10
- --------------------------------------------------------------------------------------------------------------
  Shinhan Macquarie                      2,015       0.02            578       0.01            583       0.01
- --------------------------------------------------------------------------------------------------------------
  Jeju Bank                             46,704       0.54         44,783       0.59         23,855       0.55
- --------------------------------------------------------------------------------------------------------------
  Shinhan Credit Information             1,786       0.02          2,392       0.03          1,169       0.03
- --------------------------------------------------------------------------------------------------------------
  SH&C Life Insurance                   12,996       0.15         13,985       0.19          2,926       0.07
- --------------------------------------------------------------------------------------------------------------
Investment on Bonds                          0       0.00            905       0.01          1,279       0.03
- --------------------------------------------------------------------------------------------------------------
Loans                                2,007,828      23.36      1,618,091      21.41        390,275       9.00
- --------------------------------------------------------------------------------------------------------------
Fixed Assets                             1,588       0.02          1,434       0.02          1,272       0.03
- --------------------------------------------------------------------------------------------------------------
Intangible Assets                          401       0.00            471       0.01            163       0.00
- --------------------------------------------------------------------------------------------------------------
Cash Deposit in bank                   111,217       1.29         25,326       0.34         57,241       1.32
- --------------------------------------------------------------------------------------------------------------
Other Assets                            44,535       0.52         30,808       0.41         10,325       0.24
- --------------------------------------------------------------------------------------------------------------
            Total                    8,593,465     100.00      7,559,046     100.00      4,334,574     100.00
- --------------------------------------------------------------------------------------------------------------
</TABLE>

1.   The Average Balance was calculated by averaging the ending balance of each
     quarter.
2.   The Average Balance of Goodmorning Shinhan Securities for 2002 is the sum
     of the pre-merger balances of Shinhan Securities and Goodmorning
     Securities.

                                       9
<PAGE>
OTHER FINANCIAL INFORMATION

REQUISITE CAPITAL RATIO

<TABLE>
<CAPTION>
                                                                    (in millions of Korean Won)
- -----------------------------------------------------------------------------------------------
                                                   1st quarter
                                                     of 2004         2003 2)           2002
- -----------------------------------------------------------------------------------------------
<S>                                                <C>              <C>              <C>
       Aggregate Amount of Equity Capital (A)        9,960,206      8,847,673        4,842,795
       Requisite Capital (B)                         7,763,470      7,472,030        3,698,754
       Requisite Capital Ratio (A/B) 1)                 128.30%        118.41%          130.93%
- -----------------------------------------------------------------------------------------------
</TABLE>

1.   Under the guidelines issued by the Financial Supervisory Commission
     applicable to financial holding companies, we, at the holding company
     level, are required to maintain a minimum requisite capital ratio of 100%.
2.   The numbers for the 1st quarter of 2004 are provisional and are subject to
     change.


WON LIQUIDITY RATIO

<TABLE>
<CAPTION>
                                                                          (in millions of Korean Won)
- -----------------------------------------------------------------------------------------------------
                                                           1st quarter
                                                             of 2004            2003           2002
- -----------------------------------------------------------------------------------------------------
<S>                                                        <C>                 <C>            <C>
       Won Assets due within 3 months (A)                    332,483           16,687         14,945
       Won Liabilities due within 3 months (B)               319,951           15,504          6,480
       Won Liquidity Ratio (A/B) 1)                           103.92%          107.46%        230.63%
- -----------------------------------------------------------------------------------------------------
</TABLE>

1.   Under the guidelines issued by the Financial Supervisory Commission, we, at
     the holding company level, are required to maintain a Won liquidity ratio
     of not less than 100%.


LIABILITIES TO EQUITY RATIO

<TABLE>
<CAPTION>
                                                                           (in millions of Korean Won)
- ------------------------------------------------------------------------------------------------------
                                                     1st quarter
                                                       of 2004              2003               2002
- ------------------------------------------------------------------------------------------------------
<S>                                                  <C>                 <C>                <C>
       Liabilities (A)                                 2,533,606         2,176,875            774,759
       Adjusted Equity (B) 1)                          6,358,895         6,117,555          4,010,220
       Liabilities to Equity Ratio (A/B)                   39.84%            35.58%             19.32%
- ------------------------------------------------------------------------------------------------------
</TABLE>

1.   Adjusted Equity was calculated by subtracting the amount of intangible
     assets from total net assets.


CAPITAL ADEQUACY RATIO AND OTHER RATIOS OF CERTAIN SUBSIDIARIES

                                       10
<PAGE>

1)   Total Capital Adequacy Ratio (%)

<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------
                                  1st quarter of 2004                  2003                2002
<S>                               <C>                                 <C>                 <C>

         Shinhan Bank                     11.17                       10.49               10.91
         Chohung Bank                      9.10                        8.87                8.66
         Jeju Bank                        10.56                       10.96               11.71
- -----------------------------------------------------------------------------------------------
</TABLE>

*    The Total Capital Adequacy Ratios are computed in accordance with the
     guidelines issued by the Financial Supervisory Commission for commercial
     banks. Under these guidelines, commercial banks are required to maintain a
     minimum capital adequacy ratio of 8%.


2)   Net Capital Ratio

<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------
                                                     Mar.31 2004     Mar.31 2003     Mar.31 2002
<S>                                                  <C>             <C>             <C>
         Goodmorning Shinhan Securities                480.7%           412.6%         589.5%
- ------------------------------------------------------------------------------------------------
</TABLE>

*    Net Capital Ratio is computed in accordance with the guidelines issued by
     the Financial Supervisory Commission for securities investment trust
     businesses. Under these guidelines, Goodmorning Shinhan Securities is
     required to maintain a minimum net capital ratio of 100%.


3)   Adjusted Equity Capital Ratio

<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------
                                          1st quarter of 2004         2003             2002
<S>                                       <C>                        <C>              <C>
         Shinhan Card                           14.40%               13.78%           10.86%
- --------------------------------------------------------------------------------------------
</TABLE>

*    The Adjusted Equity Capital Ratio represents the ratio of total adjusted
     shareholder's equity to total adjusted assets and is computed in accordance
     with the guidelines issued by the Financial Supervisory Commission for
     credit card companies. Under these guidelines, Shinhan Card is required to
     maintain a minimum adjusted equity capital ratio of 8%.


4)   Non Performing Loans

<TABLE>
<CAPTION>

                                                                            (in 100 millions of Korean Won)
- -----------------------------------------------------------------------------------------------------------
                                  March 31.2004               Dec.31.2003               Dec.31.2002
                             ------------------------------------------------------------------------------
                                             NPL to                     NPL to                    NPL to
                             Balance of   total Loans   Balance of   total Loans   Balance of   total Loans
                                 NPL          (%)          NPL           (%)           NPL         (%)
                             ------------------------------------------------------------------------------
<S>                          <C>          <C>           <C>          <C>           <C>          <C>
        Shinhan Bank 1)         4,649         0.93        3,985          0.82        2,983         0.69
        Chohung Bank 1)        18,705          4.2       18,796           4.1       19,811          4.0
        Jeju Bank 1)              359         2.77          298          2.27          238         1.86
        G.MS Securities 2)        382        13.48          410            19        1,244           45
        Shinhan Card 3)           652         5.92          747          6.34          714         2.82
- -----------------------------------------------------------------------------------------------------------
</TABLE>

1.   Non-performing loans of banks are defined as those loans are past due more
     than 90 days or those are placed on non-accrual status according to the
     guidelines of the Financial Supervisory Service.

                                       11
<PAGE>
2.   Under the guidelines of the Financial Supervisory Service, every securities
     company shall classify its loans into five categories: "normal",
     "precautionary", "substandard", "doubtful", and "estimated loss". Under the
     Group's internal measures, non-performing loans of Goodmorning Shinhan
     Securities includes loans classified as "substandard", "doubtful", and
     "estimated loss."
3.   Under the guidelines of the Financial Supervisory Service, every credit
     card company shall classify its loans into five categories: "normal",
     "precautionary", "substandard", "doubtful", and "estimated loss". Under the
     Group's internal measures, non-performing loans of Shinhan Card includes
     loans classified as "substandard", "doubtful", and "estimated loss."


5)   Loan Loss Allowances & Write-offs for the period

<TABLE>
<CAPTION>
                                                                    (in 100 millions of Korean Won)
- ---------------------------------------------------------------------------------------------------
                                                     Jan.1, 2004~     Jan.1, 2003~     Jan.1, 2002~
                                                     Mar.31, 2004     Dec.31, 2003     Dec.31, 2002
- ---------------------------------------------------------------------------------------------------
<S>                    <C>             <C>           <C>              <C>              <C>
     Shinhan Bank      Loan Loss       Domestic             8,479            8,664            4,925
                       Allowance       ------------------------------------------------------------
                                       Overseas               729              745              733
                                       ------------------------------------------------------------
                                         Total              9,208            9,409            5,658
                       ----------------------------------------------------------------------------
                       Write-offs                             167              715            1,375
- ------------------------------------------------------------------------------------------------
     Chohung Bank      Loan Loss       Domestic            16,246           16,820           16,988
                       Allowance       ------------------------------------------------------------
                                       Overseas               623              693              563
                                       ------------------------------------------------------------
                                         Total             16,869           17,513           17,551
                       ----------------------------------------------------------------------------
                       Write-offs                           2,981           17,812           11,007
- ---------------------------------------------------------------------------------------------------
     Jeju Bank         Loan Loss       Domestic               458              345              273
                       Allowance       ------------------------------------------------------------
                                       Overseas                 -                -                -
                                       ------------------------------------------------------------
                                         Total                458              345              273
                       ----------------------------------------------------------------------------
                       Write-offs                              35              179              240
- ---------------------------------------------------------------------------------------------------
     GM Shinhan        Loan Loss       Domestic               309              370              929
     Securities 1)     Allowance       ------------------------------------------------------------
                                       Overseas                 -                -                -
                                       ------------------------------------------------------------
                                         Total                309              370              929
                       ----------------------------------------------------------------------------
                       Write-offs                               -               75              244
- ---------------------------------------------------------------------------------------------------
     Shinhan Card 2)   Loan Loss       Domestic               827              946              961
                       Allowance       ------------------------------------------------------------
                                       Overseas                 -                -                -
                                       ------------------------------------------------------------
                                         Total                827              946              961
                       ----------------------------------------------------------------------------
                       Write-offs                             646            2,770              544
- ---------------------------------------------------------------------------------------------------
</TABLE>

1.   The fiscal year of Goodmorning Shinhan Securities ends on March 31 of each
     year. Accordingly, the relevant periods for Goodmorning Shinhan Securities
     are adjusted as follows: (i) from April 1, 2003 to March 31, 2004, (ii)
     from April 1, 2002 to March 31 2003, and (iii) from April 1, 2001 to March
     31, 2002.
2.   Shinhan Card was incorporated on July 1, 2002.


3. INDEPENDENT ACCOUNTANT

                                       12
<PAGE>
COMPENSATION TO THE INDEPENDENT AUDITOR FOR AUDIT AND REVIEW SERVICES

     The following is a description of the fees for audit and review services
performed by our independent auditor for the last three years in connection with
our financial statements prepared in accordance with generally accepted
accounting principles in Korea.

<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------
      Year                         Auditor                       Payment (KRW)        Working hours
- ---------------------------------------------------------------------------------------------------
<S>                     <C>                                      <C>                  <C>
    2004 1)             KPMG Samjong Accounting Corp.             300,000,000               -
      2003              KPMG Samjong Accounting Corp.             210,000,000          1,560 hours
      2002              KPMG Samjong Accounting Corp.             150,000,000          1,484 hours
      2001              KPMG Samjong Accounting Corp.              70,000,000             9 days
- ---------------------------------------------------------------------------------------------------
</TABLE>

1)   The payment for 2004 is the total engagement amount, and therefore, it has
     not been fully paid yet.


COMPENSATION FOR SERVICES OTHER THAN AUDIT AND REVIEW

     The following is a description of the fees and commissions paid to our
independent auditor for the services set forth below for the last three years.

<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------
     Year        Month                      Service description                               Payment (KRW)
- -----------------------------------------------------------------------------------------------------------
<S>              <C>      <C>                                                                 <C>
   2004 1)        Jan.    Consulting services for disclosure control and                      1,375,000,000
                          procedure & Internal control system
     2003        Sept.    Due diligence on the Chohung Bank                                     904,000,000
                 July     Valuation of common shares of Chohung Bank                            100,000,000
     2001        Sept.    Advisory service for accounting and taxation                           40,000,000
- -----------------------------------------------------------------------------------------------------------
</TABLE>

1)   The payment for 2004 is the total engagement amount, and therefore, it has
     not been fully paid yet.


4. PERFORMANCE OF AFFILIATED COMPANIES

                                       13
<PAGE>
CONDENSED FINANCIAL STATEMENTS OF SUBSIDIARIES


1)   Balance sheets

     Condensed balance sheets of subsidiaries as of March 31, 2004 are as
     follows:

<TABLE>
<CAPTION>
                                                                   (In millions of Korean Won)
                                                   ----------------------------------------------------------
                                                                                          Total stockholders'
                  Subsidiaries                     Total assets       Total liabilities           equity
                  ------------                     ------------       -----------------   -------------------
<S>                                                <C>                <C>                 <C>
       Shinhan Bank                                W 74,206,294           70,787,755            3,418,539
       Chohung Bank                                  62,240,144           59,915,568            2,324,576
       Goodmorning Shinhan Securities                 2,251,449            1,595,278              656,171
       Shinhan Card                                   1,645,129            1,492,683              152,446
       Shinhan Capital                                1,222,488            1,119,741              102,747
       Shinhan BNP Paribas ITMC                          49,013                2,914               46,099
       Jeju Bank                                      1,702,026            1,602,587               99,439
       SH&C Life Insurance                              140,105              114,161               25,944
       e-Shinhan                                          3,989                  256                3,733
       Shinhan Macquarie                                 17,703               13,414                4,289
       Shinhan Credit Information                        12,657                9,511                3,146
                                                   ------------          -----------            ---------
                                                   W143,490,997          136,653,868            6,837,129
                                                   ============          ===========            =========
</TABLE>


2)   Statements of Earnings

     Condensed statements of earnings of subsidiaries for the years ended March
     31, 2004 are as follows:

<TABLE>
<CAPTION>
                                                               (In millions of Korean Won)
                                         ----------------------------------------------------------------------------
                                         Operating        Operating        Operating      Ordinary       Net earnings
              Subsidiaries                 revenue          expense       income (loss)  income (loss)       (loss)
              ------------               ----------       ---------      -------------  -------------    ------------
<S>                                      <C>              <C>            <C>            <C>              <C>
       Shinhan Bank                      W1,440,872       1,196,837         244,035        365,565         253,408
       Chohung Bank                       1,479,113       1,438,160          40,953         36,740          36,120
       Goodmorning Shinhan
        Securities (*)                      193,385         178,928          14,457         22,116          24,098
       Shinhan Card                         108,895         114,080          (5,185)        (5,190)         (5,190)
       Shinhan Capital                       56,245          43,435          12,810         12,141           8,309
       Shinhan BNP
        Paribas ITMC (*)                      3,230           1,715           1,515          1,520           1,066
       Jeju Bank                             32,539          36,528          (3,989)        (4,319)         (4,319)
       SH&C life Insurance (*)                7,880           8,532            (652)          (652)           (652)
       e-Shinhan                                638             624              14             34              34
       Shinhan Macquarie (*)                  7,687           6,187           1,500          1,517             661
       Shinhan Credit Information             9,248          10,149            (901)          (715)           (715)
                                         ----------       ---------         -------        -------         -------
                                         W3,339,732       3,035,175         304,557        428,757         312,820
                                         ==========       =========         =======        =======         =======
</TABLE>


5. MARKET PRICE INFORMATION OF OUR EQUITY SECURITIES

                                       14
<PAGE>
COMMON SHARE TRADED IN KOREA STOCK EXCHANGE

<TABLE>
<CAPTION>
                                                                       (in Korean Won or number of shares)
- ----------------------------------------------------------------------------------------------------------
                         Nov. 2003      Dec. 2003      Jan. 2004     Feb. 2004    Mar. 2004     Apr. 2004
- ----------------------------------------------------------------------------------------------------------
<S>             <C>      <C>            <C>            <C>           <C>          <C>           <C>
  Price per     High         19,700         19,050         20,100        23,050       22,700        23,250
  share         Low          16,200         17,300         18,000        18,950       20,050        20,450
  Trading       Volume   26,806,597     21,912,227     19,275,208    27,301,403   67,106,149    21,938,659
- ----------------------------------------------------------------------------------------------------------
</TABLE>


AMERICAN DEPOSITARY SHARES

     Shinhan Financial Group listed its American Depositary Shares on the New
York Stock Exchange on September 16, 2003.

American Depositary Shares trade on the New York Stock Exchange

<TABLE>
<CAPTION>
                                                                       (in US Dollars or number of shares)
- ----------------------------------------------------------------------------------------------------------
                            Nov. 2003      Dec. 2003      Jan. 2004     Feb. 2004    Mar. 2004   Apr. 2004
- ----------------------------------------------------------------------------------------------------------
<S>             <C>         <C>            <C>            <C>           <C>          <C>         <C>
  Price per     High          32.75          32.05          35.10         39.63        38.50         40.80
  share         Low           28.15          29.35          30.80         32.80        34.05         35.15
  Trading       Volume       30,300         90,000         67,500       178,900      160,700        90,700
- ----------------------------------------------------------------------------------------------------------
</TABLE>


6. DIRECTORS, EXECUTIVE OFFICERS AND EMPLOYEES

DIRECTORS AND EXECUTIVE OFFICERS

1)   Executive Directors

     Our executive directors are as follows

<TABLE>
<CAPTION>
- ----------------------------------------------------------------------
Name                      Age   Position
- ----------------------------------------------------------------------
<S>                       <C>   <C>
Eung Chan Ra              65    Chairman of BOD
                                Chairman of the BOD Steering Committee
Young Hwi Choi            57    President & CEO
- ----------------------------------------------------------------------
</TABLE>


2)   Non-Executive Directors

     Currently, 13 non executive directors are in office, all of whom were
     nominated by our BOD and appointed or reappointed pursuant to the approval
     of general shareholders' meeting on March 25, 2004.

     Our non-executive directors are as follows.

                                       15
<PAGE>
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
                Name              Age                   Position
- --------------------------------------------------------------------------------
<S>                               <C>     <C>
       In Ho Lee                  60      Non-Executive Directors
       Young Seok Choi            74      Non-Executive Directors,
                                          Audit Committee member,
                                          Compensation Committee member
       Yong Woong Yang            55      Non-Executive Directors
       Pyung Joo Kim              65      Outside Director
                                          BOD Steering Committee member
                                          Chairman of Risk Management Committee
       Il Sup Kim                 57      Outside Director
                                          Chairman of Audit Committee
                                          Compensation Committee member
       Sang Yoon Lee              61      Outside Director
                                          Audit Committee member
                                          Compensation Committee member
       Yoon Soo Yoon              58      Outside Director
                                          BOD Steering Committee member
                                          Risk Management Committee member
                                          Chairman of Compensation Committee
       Sang Chul Lee              56      Outside Director
                                          Compensation Committee member
       Byung Hun Park             75      Outside Director
                                          BOD Steering Committee member
       Moon Pil Oh                73      Outside Director
                                          Audit Committee member
       Young Soo Lee              69      Outside Director
       Dong Hyun Kwon             67      Outside Director
                                          Audit Committee member
       Philippe Reynieix          54      Outside Director
                                          Risk Management Committee member
- --------------------------------------------------------------------------------
</TABLE>

     For the personal profiles of the directors, please refer to our Form 6-K
     filed on March 8, 2004, in which we included the resume of director
     candidates.

3)   Executive Officers

     In addition to the executive directors who are also our executive officers,
     we currently have the following executive officers

<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------
          Name              Age                                    Position
- ---------------------------------------------------------------------------------------------------------
<S>                         <C>    <C>
     Bhang Gil Choi         52     Senior Executive Vice President of Integration Coordination Team I and
                                    II (taking charge of Chohung Bank related issues)
     Chil Sun Hong          57     Senior Executive Vice President of Subsidiary Management Team II,
                                    Public Relations Team, and Audit & Compliance Team
     Hee Soo Kim            53     Senior Executive Vice President of Subsidiary Management Team I and
                                    Integration Coordination Team I
     Byung Jae Cho          53     Chief Financial Officer and Senior Executive Vice President of Planning
                                    & Financial Management Team and Investor Relations Team
     Lee, Baek Soon         51     Senior Executive Vice President of General Service Team, Information &
                                    Technology Planning Team and Integration Coordination Team II
- ---------------------------------------------------------------------------------------------------------
</TABLE>

                                       16
<PAGE>
EMPLOYEES

<TABLE>
<CAPTION>
                                                                                      (As of March 31, 2004)
- ------------------------------------------------------------------------------------------------------------
                                                      Total Salaries and wages paid     Average Payment per
               Number of         Average Tenure           for 1st quarter 2004          person (in mil. of
               Employees                                 (in mil. of Korean Won)            Korean Won)
- ------------------------------------------------------------------------------------------------------------
<S>            <C>             <C>                    <C>                               <C>
   Male               60       1 year & 4 months                            1,028.5                    17.1
  Female              13       1 year & 5 months                               94.5                     6.8
   Total              73       1 year & 5 months                            1,123.1                       -
- ------------------------------------------------------------------------------------------------------------
</TABLE>


EXHIBIT 1.
The Independent Accountant's Review Report (under Korean GAAP) to the
Non-consolidated Financial Statements of Shinhan Financial Group as of and for
the year ended December 31, 2003

<TABLE>
<CAPTION>
                                                                                       Page
                                                                                       ----
<S>                                                                                    <C>
- - Independent Accountant's Review Report                                               F-2
- - Shinhan Financial Group Non-Consolidated Balance Sheets                              F-5
- - Shinhan Financial Group Non-Consolidated Statements of Earnings                      F-6
- - Shinhan Financial Group Non-Consolidated Statements of Cash Flows                    F-7
- - Notes to Non-Consolidated Financial Statements                                       F-9
</TABLE>

                                       17
<PAGE>
                                   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.



                                            By /s/Byung Jae Cho
                                            ------------------------------------
                                            Name:  Byung Jae Cho
                                            Title: Chief Financial Officer

Date: May 19, 2004

                                       18




</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-1
<SEQUENCE>2
<FILENAME>u99048exv1.txt
<DESCRIPTION>INDEPENDENT ACCOUNTANT'S REVIEW REPORT
<TEXT>
<PAGE>
                                                                       Exhibit 1



                    SHINHAN FINANCIAL GROUP CO., LTD.

                    Non-Consolidated Financial Statements

                    (Unaudited)

                    March 31, 2004

                    (With Independent Accountants' Review Report Thereon)

                                      F-1
<PAGE>
                     INDEPENDENT ACCOUNTANTS' REVIEW REPORT

                  Based on a report originally issued in Korean



To the Board of Directors and Stockholders
Shinhan Financial Group Co., Ltd.:


We have reviewed the non-consolidated balance sheet of Shinhan Financial Group
Co., Ltd. (the "Company") as of March 31, 2004, the related non-consolidated
statements of earnings and cash flows for the quarter ended March 31, 2004 and
2003. These non-consolidated financial statements are the responsibility of the
Company's management. Our responsibility is to issue a report on these financial
statements based on our review.

We conducted our review in accordance with the Review Standards for Semiannual
Financial Statements established by the Securities and Futures Commission of the
Republic of Korea. These Standards require that we plan and perform the review
to obtain moderate assurance as to whether the financial statements are free of
material misstatement. A review consists principally of inquiries of company
personnel and analytical procedures applied to financial data and, thus provides
less assurance than an audit. We have not performed an audit and, accordingly,
we do not express an audit opinion.

Based on our review, nothing has come to our attention that causes us to believe
that the non-consolidated financial statements referred to above are not
presented fairly, in all material respects, in accordance with the Financial
Accounting Standards, as established by the Financial Supervisory Commission of
the Republic of Korea.

The non-consolidated balance sheet of the Company as of December 31, 2003 and
the related non-consolidated statements of earnings, appropriation of retained
earnings and cash flows for the year then ended, which are not accompanying this
report, were audited by us and our report thereon, dated January 30, 2004,
expressed an unqualified opinion. The accompanying non-consolidated balance
sheet of the Company as of December 31, 2003, presented for comparative
purposes, is not different from that audited by us in all material respects.

The accompanying non-consolidated financial statements have been translated into
United States dollars solely for the convenience of the reader, on the basis set
forth in Note 2(b) to the non-consolidated financial statements.

                                      F-2
<PAGE>
The following matters may be helpful to the readers in their understanding of
the non-consolidated financial statements:

As discussed in Note 2(a) to the non-consolidated financial statements,
accounting principles and review standards and their application in practice
vary among countries. The accompanying non-consolidated financial statements are
not intended to present the financial position, results of operations and cash
flows in accordance with accounting principles and practices generally accepted
in countries other than the Republic of Korea. In addition, the procedures and
practices utilized in the Republic of Korea to review such financial statements
may differ from those generally accepted and applied in other countries.
Accordingly, this report and the accompanying non-consolidated financial
statements are for use by those knowledgeable about Korean accounting procedures
and review standards and their application in practice.

As described in Note 1(a) to the non-consolidated financial statements, on March
3, 2004, Shinhan Bank sold 10.2% (29,873,295 shares) of total outstanding shares
in the Company at W627,339 million (W21,000 per share), through after-hour block
trading.

As described in Note 1(b) to the non-consolidated financial statements, the
Company decided to acquire 18.85% of minority shares in Chohung Bank through
tender offer and share exchange, at the Board of Directors' Meeting held on
April 12, 2004. As a result, the Company will provide a tender offer for 3.77%
of shares in Chohung Bank at W3,500 per share from April 26, 2004 to May 17,
2004. With respect to share exchange for 15.08% of shares in Chohung Bank, the
shareholders, who are against the share exchange, are entitled for a right to
sell their shares at W3,067 per share from May 25, 2004 to June 3, 2004, with
the resolution of extraordinary shareholders' meeting of Chohung Bank to be held
on May 24, 2004, and the remaining shares will be subject to share exchange, at
the exchange ratio of 0.1354 share in the Company to each Chohung Bank share, on
June 22, 2004.

As described in Note 1(k) to the non-consolidated financial statements, on April
29, 2004, the Company decided to acquire 49% of total outstanding shares in
Shinhan Credit Information Co., Ltd. from LSH Holdings LLC. As a result, the
Company's percentage of ownership is to be increased to 100% and Shinhan Credit
Information Co., Ltd. will become wholly owned subsidiary of the Company.

As described in Note 4 to the non-consolidated financial statements, Shinhan
Bank and Chohung Bank are holding loans (including securities and guarantees and
acceptances) provided to SK Networks Co., Ltd., which has been controlled by
creditor banks in accordance with the Corporate Restructuring Promotion Act of
the Republic of Korea, amounting to W376,391 million and W318,186 million,
respectively. As regards to those loans, Shinhan Bank and Chohung Bank provide
W106,358 million and W91,487 million of allowance for loan losses, respectively,
as of March 31, 2004. Actual losses on those loans may differ materially from
the management's assessments. The accompanying non-consolidated financial
statements do not reflect the impact of the uncertainty on the financial
position of the Company for the equity method.

As described in Note 4 to the non-consolidated financial statements, Shinhan
Bank, Chohung Bank and Goodmorning Shinhan Securities Co., Ltd. are holding
loans provided to and securities issued by LG Card Co., Ltd., which has been
controlled by creditor banks due to its liquidity crisis, amounting to W272.4
billion, W253.5 billion and W4.9 billion, respectively. Actual losses on these
loans and securities may differ materially from the management's assessments and
the accompanying non-consolidated financial statements do not reflect the impact
of the uncertainty on the financial position of the Company for the equity
method. Shinhan Bank and Chohung Bank have provided W81.0 billion and W73.4
billion of additional capital, respectively, for the quarter ended March 31,
2004, and will convert W121.7 billion and W110.3 billion of loans, respectively,
to equity shares.

As described in Note 12 to the non-consolidated financial statements, the
Company recorded W2,335,639 million of assets (representing 26.3% of
non-consolidated total assets) as of March 31, 2004 and W28,933 million of
operating revenue (representing 15.7% of non-consolidated total operating
revenue) for the quarter ended March 31, 2004 through its related party
transactions.

                                      F-3
<PAGE>
As described in Note 14(a) to the non-consolidated financial statements, on July
9, 2003, the Company made an agreement with the Korea Deposit Insurance
Corporation (the "KDIC") to acquire 80.04% (543,570,144 shares) of total
outstanding shares in Chohung Bank. In accordance with the agreement, the
Company purchased 266,349,371 shares in exchange for the Company's shares on
August 18, 2003 and 277,220,773 shares in cash on August 19, 2003. The
acquisition of the shares was accounted for using the purchase method, and the
acquisition cost of the shares and goodwill were W1,857,983 million and W840,244
million, respectively. Additionally, pursuant to the acquisition agreement, the
Company would be required to pay contingent consideration to the KDIC at the
maximum amount of W652,284 million related to Asset Indemnity Payment, W166,516
million related to General Indemnity Payment and additional Earn Out Payment
based on earnings of Chohung Bank in future periods. These contingent
considerations are not included in the acquisition cost on the date of
acquisition, for the amount is not determinable.








KPMG Samjong Accounting Corp.
Seoul, Korea
April 23, 2004






















- --------------------------------------------------------------------------------
This report is effective as of April 23, 2004, the review report date. Certain
subsequent events or circumstances, which may occur between the review report
date and the time of reading this report, could have a material impact on the
accompanying non-consolidated financial statements and notes thereto.
Accordingly, the readers of the review report should understand that there is a
possibility that the above review report may have to be revised to reflect the
impact of such subsequent events or circumstances, if any.
- --------------------------------------------------------------------------------

                                      F-4
<PAGE>
                        Shinhan Financial Group Co., Ltd.

                         NON-CONSOLIDATED BALANCE SHEETS

                      March 31, 2004 and December 31, 2003

               (In millions of Won and thousands of U.S. dollars)

                                   (Unaudited)

<TABLE>
<CAPTION>
                                                                       Won                     U.S. dollars (note 2)
                                                            -------------------------        -------------------------
                                                               2004           2003              2004            2003
                                                            ----------      ---------        ----------      ---------
<S>                                                         <C>             <C>              <C>             <C>
      Assets

Cash and due from bank (notes 3 and 12)                     W  217,082          5,353        $  188,178          4,640
Securities (note 4)                                          6,547,254      6,308,538         5,675,498      5,468,566
Loans (notes 5, 12 and 13)                                   2,080,476      1,935,180         1,803,463      1,677,514
Fixed assets (note 6)                                            1,957          2,020             1,696          1,751
Other assets (notes 7, 12 and 13)                               45,732         43,339            39,644         37,569
                                                            ----------      ---------        ----------      ---------
                                                            W8,892,501      8,294,430        $7,708,479      7,190,040
                                                            ==========      =========        ==========      =========

      Liabilities and Stockholders' equity

Liabilities:
  Borrowings (notes 8 and 13)                               W  259,216        165,868        $  224,702        143,783
  Debentures (notes 9 and 13)                                2,029,693      1,980,543         1,759,443      1,716,837
  Retirement and severance benefits (note 10)                       49              -                42              -
  Other liabilities (notes 11 and 13)                          244,759         30,464           212,170         26,408
                                                            ----------      ---------        ----------      ---------
           Total liabilities                                 2,533,717      2,176,875         2,196,357      1,887,028
                                                            ----------      ---------        ----------      ---------
Stockholders' equity:
  Capital stock of W5,000 par value (note 15)                1,958,530      1,958,530         1,697,755      1,697,755
    Common stock
      Authorized - 1,000,000,000 shares
      Issued - 294,401,300 shares
    Preferred stock
      Issued - 97,304,564 shares
  Capital surplus                                            3,316,380      3,316,380         2,874,809      2,874,809
  Retained earnings (note 16)                                  771,818        866,398           669,051        751,038
  Capital adjustments (notes 4 and 17)                         312,056        (23,753)          270,507        (20,590)
                                                            ----------      ---------        ----------      ---------
           Total stockholders' equity                        6,358,784      6,117,555         5,512,122      5,303,012
Commitments and contingencies (note 14)
                                                            ----------      ---------        ----------      ---------
                                                            W8,892,501      8,294,430        $7,708,479      7,190,040
                                                            ==========      =========        ==========      =========
</TABLE>

See accompanying notes to non-consolidated financial statements.


                                      F-5
<PAGE>
                        Shinhan Financial Group Co., Ltd.

                     NON-CONSOLIDATED STATEMENTS OF EARNINGS

                 For the quarters ended March 31, 2004 and 2003

  (In millions of Won and thousands of U.S. dollars, except earnings per share)

                                   (Unaudited)

<TABLE>
<CAPTION>
                                                                       Won                     U.S. dollars (note 2)
                                                              -----------------------          -----------------------
                                                                2004            2003             2004            2003
                                                              --------         ------          --------         ------
<S>                                                           <C>              <C>             <C>              <C>
Operating revenue:
  Valuation gain using the equity method
   (notes 4 and 25)                                           W155,528         64,722          $134,819         56,104
  Interest income (note 12)                                     28,932         15,257            25,080         13,226
                                                              --------         ------          --------         ------
                                                               184,460         79,979           159,899         69,330
Operating expense:
  Interest expense                                              30,366         14,287            26,323         12,385
  Fees and commission                                               52          1,989                45          1,724
  General and administrative expenses (note 19)                  8,785          7,384             7,615          6,401
                                                              --------         ------          --------         ------
                                                                39,203         23,660            33,983         20,510
                                                              --------         ------          --------         ------
Operating income                                               145,257         56,319           125,916         48,820
Non-operating income (expense):
  Gain (loss) on foreign currency translation, net                   2              3                 1              2
  Loss on foreign currency transactions                             (1)             -                (1)             -
  Donation                                                          (2)            (3)               (1)            (2)
  Other, net                                                       360            115               312            100
                                                              --------         ------          --------         ------
                                                                   359            115               311            100
                                                              --------         ------          --------         ------
Earnings before income taxes                                   145,616         56,434           126,227         48,920
Income taxes (note 20)                                               -              -                 -              -
                                                              --------         ------          --------         ------
Net earnings                                                  W145,616         56,434          $145,616         48,920
                                                              ========         ======          ========         ======
Ordinary income and net earnings
 per share in Won and U.S. dollars (note 21)                  W    397            193          $   0.34           0.17
                                                              ========         ======          ========         ======
Diluted ordinary income and net earnings per share
 in Won and U.S. dollars (note 21)                            W    357              -          $   0.31              -
                                                              ========         ======          ========         ======
</TABLE>

See accompanying notes to non-consolidated financial statements.

                                      F-6
<PAGE>
                        Shinhan Financial Group Co., Ltd.

                    NON-CONSOLIDATED STATEMENTS OF CASH FLOWS

                 For the quarters ended March 31, 2004 and 2003

               (In millions of Won and thousands of U.S. dollars)

                                   (Unaudited)

<TABLE>
<CAPTION>
                                                                         Won                     U.S. dollars (note 2)
                                                               ------------------------         ------------------------
                                                                 2004           2003              2004           2003
                                                               ---------       --------         ---------       --------
<S>                                                            <C>             <C>              <C>             <C>
Cash flows from operating activities:
  Net earnings                                                 W 145,616         56,434         $ 126,227         48,920
  Adjustments to reconcile net earnings to net
   cash provided by (used in) operating activities:
    Provision for retirement and severance benefit                    53            267                46            231
    Stock compensation costs                                         355            254               308            220
    Interest expense                                                 773            481               670            417
    Depreciation expense                                             149            106               129             92
    Amortization expense                                              27             27                23             23
    Bad debt expense                                                 730          4,116               633          3,568
    Loss (gain) on foreign currency translation, net                  (2)             1                (1)             1
    Valuation gain using the equity method                      (155,528)       (64,722)         (134,819)       (56,104)
    Increase in other assets                                        (302)        (7,782)             (261)        (6,746)
    Increase in other liabilities                                  1,133          7,195               982          6,237
    Retirement and severance benefit paid                            (90)           (35)              (78)           (30)
    Increase in deposit for severance benefit insurance               86             22                74             19
                                                               ---------       --------         ---------       --------
          Net cash used in operating activities                   (7,000)        (3,636)           (6,067)        (3,152)
                                                               ---------       --------         ---------       --------
Cash flows from investing activities:
  Cash provided by investing activities:
    Dividends received                                           252,807        185,896           219,146        161,144
  Cash used in investing activities:
    Increase in loans                                           (150,000)      (820,000)         (130,028)      (710,818)
    Purchases of fixed assets                                       (112)           (42)              (97)           (36)
    Increase in other assets                                        (715)           (90)             (620)           (78)
                                                               ---------       --------         ---------       --------
                                                                (150,827)      (820,132)         (130,745)      (710,932)
                                                               ---------       --------         ---------       --------
          Net cash provided by (used in)
           investing activities                                  101,980       (634,236)           88,401       (549,788)
                                                               ---------       --------         ---------       --------
</TABLE>

                                      F-7
<PAGE>
                        Shinhan Financial Group Co., Ltd.

              NON-CONSOLIDATED STATEMENTS OF CASH FLOWS, CONTINUED

                 For the quarters ended March 31, 2004 and 2003

               (In millions of Won and thousands of U.S. dollars)

                                   (Unaudited)

<TABLE>
<CAPTION>
                                                                         Won                      U.S. dollars (note 2)
                                                                -----------------------          -----------------------
                                                                  2004           2003              2004           2003
                                                                --------        -------          --------        -------
<S>                                                             <C>             <C>              <C>             <C>
Cash flows from financing activities:
  Cash provided by financing activities:
    Increase in borrowings                                        96,000        300,000            83,218        260,055
    Increase in debentures                                        50,000        420,000            43,342        364,078
                                                                --------        -------          --------        -------
                                                                 146,000        720,000           126,560        624,133
  Cash used in financing activities:
    Issuance cost on debentures paid                                (298)        (1,329)             (258)        (1,152)
    Dividends paid                                               (28,953)       (30,508)          (25,098)       (26,446)
                                                                --------        -------          --------        -------
                                                                 (29,251)       (31,837)          (25,356)       (27,598)
                                                                --------        -------          --------        -------
          Net cash provided by financing activities              116,749        688,163           101,204        596,535
                                                                --------        -------          --------        -------
Net increase in cash and cash equivalents                        211,729         50,291           183,538         43,595
Cash and cash equivalents at beginning of period                   5,353         10,613             4,640          9,200
                                                                --------        -------          --------        -------
Cash and cash equivalents at end of period                      W217,082         60,904          $188,178         52,795
                                                                ========        =======          ========        =======
</TABLE>

See accompanying notes to non-consolidated financial statements.

                                      F-8

<PAGE>
                        Shinhan Financial Group Co., Ltd.

                 NOTES TO NON-CONSOLIDATED FINANCIAL STATEMENTS

                                 March 31, 2004

                                   (Unaudited)


(1)  General Description of the Company

     Shinhan Financial Group Co., Ltd. (the "Company") was incorporated on
     September 1, 2001 by way of the transfer of all issued shares owned by
     shareholders of Shinhan Bank, Shinhan Securities Co., Ltd., Shinhan Capital
     Co., Ltd. and Shinhan Investment Trust Management Co., Ltd. to the Company.
     The Company was formed for the purpose of providing management services and
     financing to affiliated companies with W1,461,721 million of initial
     capital stock and the Company's shares were listed on the Korea Stock
     Exchange on September 10, 2001.

     On September 16, 2003, the Company's American depository shares were listed
     on the New York Stock Exchange.

     As of March 31, 2004, the Company has 11 subsidiaries and its capital stock
     consists of W1,472,007 million in common stock and W486,523 million in
     preferred stock. Details of its subsidiaries are as follows:

     (a)  Shinhan Bank

          Shinhan Bank was established on September 15, 1981 under the General
          Banking Act of the Republic of Korea to engage in the commercial
          banking and trust operations. Shinhan Bank operates through 365
          branches and 171 automated teller machine locations and its capital
          stock amounts to W1,224,034 million as of March 31, 2004.

          Additionally, on March 3, 2004, Shinhan Bank sold 10.2% (29,873,295
          shares) of total outstanding shares in the Company at W627,339 million
          (W21,000 per share), through after-hour block trading.

     (b)  Chohung Bank

          Chohung Bank was established on October 1, 1943 under the General
          Banking Act of the Republic of Korea through the merger of Han Sung
          Bank, which was established on February 19, 1897, and Dong Il Bank,
          which was established on August 8, 1906, to engage in commercial
          banking and trust operations. The shares of Chohung Bank were listed
          on the Korea Stock Exchange on June 3, 1956, and Chohung Bank operates
          through 470 domestic branches, 87 depositary offices and 6 overseas
          branches and its capital stock amounts to W3,595,592 million as of
          March 31, 2004.

          On July 9, 2003, the Company made an agreement with the Korea Deposit
          Insurance Corporation (the "KDIC") to acquire 80.04% (543,570,144
          shares) of total outstanding shares in Chohung Bank. Additionally, the
          Company's percentage of ownership increased to 81.15% through
          additional equity acquisition at W200,000 million on December 30,
          2003.

          Additionally, the Company decided to acquire 18.85% of minority shares
          in Chohung Bank through tender offer and share exchange, at the Board
          of Directors' Meeting held on April 12, 2004. As a result, the Company
          will provide a tender offer for 3.77% of shares in Chohung Bank at
          W3,500 per share from April 26, 2004 to May 17, 2004. With respect to
          share exchange for 15.08% of shares in Chohung Bank, the shareholders,
          who are against the share exchange, are entitled for a right to sell
          their shares at W3,067 per share from May 25, 2004 to June 3, 2004,
          with the resolution of extraordinary shareholders' meeting of Chohung
          Bank to be held on May 24, 2004, and the remaining shares will be
          subject to share exchange, at the exchange ratio of 0.1354 share in
          the Company for each Chohung Bank share, on June 22, 2004.

                                      F-9
<PAGE>
                        Shinhan Financial Group Co., Ltd.

            NOTES TO NON-CONSOLIDATED FINANCIAL STATEMENTS, CONTINUED

                                 March 31, 2004

                                   (Unaudited)


(1)  General Description of the Company, Continued

     (c)  Goodmorning Shinhan Securities Co., Ltd.

          Goodmorning Shinhan Securities Co., Ltd. ("Goodmorning Shinhan
          Securities") was incorporated on April 2, 1973 to engage in securities
          trading, underwriting and brokerage services. Its shares were listed
          on the Korea Stock Exchange on December 19, 1986. On June 18, 2002,
          the Company acquired a 29% share of Good Morning Securities Co., Ltd.
          from its largest shareholders and on July 31, 2002, Good Morning
          Securities Co., Ltd. was merged with Shinhan Securities Co., Ltd.,
          which was one of subsidiaries of the Company, and renamed to
          Goodmorning Shinhan Securities. As of March 31, 2004, it operates
          through 83 branches and its capital stock amounts to W796,998 million
          (including W19,117 million of preferred stocks).

     (d)  Shinhan Card Co., Ltd.

          Shinhan Card Co., Ltd. ("Shinhan Card") was established on June 1,
          2002 under the Credit Specialty Finance Law through the spin-off of
          the credit card division of Shinhan Bank. Shinhan Card is engaged
          principally in credit card services, factoring, consumer loan and
          installment financing. As of March 31, 2004, Shinhan Card holds 2.21
          million of franchise accounts and 2.13 million of credit card holders,
          and its capital stock amounts to W152,847 million.

     (e)  Shinhan Capital Co., Ltd.

          Shinhan Capital Co., Ltd. ("Shinhan Capital") was incorporated on
          April 19, 1991 to engage in the leasing and rental business and it
          changed its name on May 27, 1999 from Shinhan Leasing Co., Ltd. to
          Shinhan Capital. Its capital stock as of March 31, 2004 amounts to
          W80,000 million.

     (f)  Shinhan BNP Paribas Investment Trust Management Co., Ltd.

          On August 1, 1996, Shinhan BNP Paribas Investment Trust Management
          Co., Ltd. ("Shinhan BNP Paribas ITMC") was established and obtained a
          license to engage in the business of investment and trust of
          securities and advisory services under the Investment and Trust of
          Securities Law. Additionally, on October 24, 2002, the Company sold
          3,999,999 shares (50% of total outstanding shares - 1 share) of
          Shinhan Investment Trust Management Co., Ltd., which has been renamed
          to Shinhan BNP Paribas ITMC, to BNP Paribas Asset Management Group.
          Its capital stock as of March 31, 2004 amounts to W40,000 million.

     (g)  Jeju Bank

          Jeju Bank was incorporated on March 18, 1969 under the General Banking
          Act of the Republic of Korea to engage in the commercial banking and
          trust business and listed its shares on the Korea Stock Exchange on
          December 28, 1972. On April 4, 2002, Jeju Bank became one of
          subsidiaries of the Company through acquiring a 51% share from the
          KDIC. Additionally, the Company's percentage of ownership increased to
          62% with the acquisition of additional common shares at W20,177
          million on July 5, 2002 and its capital stock as of March 31, 2004
          amounts to W77,644 million.

     (h)  SH&C Life Insurance Co., Ltd.

          SH&C Life Insurance Co., Ltd. ("SH&C Life Insurance") was established
          in October 1, 2002 to engage in insurance business and other related
          business. Its capital stock as of March 31, 2004 amounts to W30,000
          million.

                                      F-10
<PAGE>
                        Shinhan Financial Group Co., Ltd.

            NOTES TO NON-CONSOLIDATED FINANCIAL STATEMENTS, CONTINUED

                                 March 31, 2004

                                   (Unaudited)


(1)  General Description of the Company, Continued

     (i)  e-Shinhan Inc.

          e-Shinhan Inc. ("e-Shinhan") was incorporated on February 21, 2001 to
          engage in the business of internet brokerage service and comprehensive
          management services on customer accounts. Its capital stock as of
          March 31, 2004 amounts to W2,820 million.

     (j)  Shinhan Macquarie Financial Advisory Co., Ltd.

          Shinhan Macquarie Financial Advisory Co., Ltd. ("Shinhan Macquarie")
          was incorporated on August 1, 2001 to engage in the business of
          financial advisory services and cross border leasing. Its capital
          stock as of March 31, 2004 amounts to W1,000 million.

     (k)  Shinhan Credit Information Co., Ltd.

          Shinhan Credit Information Co., Ltd. ("Shinhan Credit Information")
          was established on July 8, 2002 as wholly owned subsidiary of the
          Company to engage in the business of debt collection services and
          credit research. Its capital stock as of March 31, 2004 amounts to
          W3,000 million.

          On April 29, 2004, the Company decided to acquire 49% of total
          outstanding shares in Shinhan Credit Information from LSH Holdings
          LLC. As a result, the Company's percentage of ownership is to be
          increased to 100% and Shinhan Credit Information will become wholly
          owned subsidiary of the Company.

Ownerships of the Company's subsidiaries as of March 31, 2004 and December 31,
2003 are as follows:

<TABLE>
<CAPTION>
                                                                     2004                          2003
                                                            -------------------------     -------------------------
                                                                           Ownership                      Ownership
                                                             Number of     Percentage      Number of     Percentage
   Investor                   Investee                        shares          (%)           shares           (%)
   --------          ------------------------------         -----------    ----------     -----------    ----------
<S>                  <C>                                    <C>            <C>            <C>            <C>
   The Company       Shinhan Bank                           244,806,782         100.0     244,806,782         100.0
                     Chohung Bank                           583,570,144          81.2     583,570,144          81.2
                     Goodmorning Shinhan Securities          94,084,384    (*)   59.4      94,084,384     (*)  59.4
                     Shinhan Card                            30,569,400         100.0      30,569,400         100.0
                     Shinhan Capital                         16,000,000         100.0      16,000,000         100.0
                     Shinhan BNP Paribas ITMC                 4,000,001          50.0       4,000,001          50.0
                     Jeju Bank                                9,692,369          62.4       9,692,369          62.4
                     SH&C Life Insurance                      3,000,001          50.0       3,000,001          50.0
                     e-Shinhan                                  415,495          73.7         415,495          73.7
                     Shinhan Macquarie                          102,000          51.0         102,000          51.0
                     Shinhan Credit Information                 306,000          51.0         306,000          51.0
   Shinhan Bank      The Company                                      -             -      29,873,359    (**)  10.2
</TABLE>

(*)  1,047,213 shares of treasury stock were considered.

(**) Preferred stocks are excluded and 10.2% (29,873,295 shares) of shares in
     Shinhan Bank were sold at W627,339 million (W21,000 per share) on March 3,
     2004 through after-hour block trading.

                                      F-11
<PAGE>
                        Shinhan Financial Group Co., Ltd.

            NOTES TO NON-CONSOLIDATED FINANCIAL STATEMENTS, CONTINUED

                                 March 31, 2004

                                   (Unaudited)


(2)  Basis of Financial Statements Presentation and Summary of Significant
     Accounting Policies

     (a)  Basis of Financial Statements Presentation

          The Company maintains its accounting records in Korean Won and
          prepares statutory non-consolidated financial statements in the Korean
          language (Hangul) in conformity with the accounting principles
          generally accepted in the Republic of Korea. Certain accounting
          principles applied by the Company that conform with financial
          accounting standards and accounting principles in the Republic of
          Korea may not conform with generally accepted accounting principles in
          other countries. Accordingly, these non-consolidated financial
          statements are intended for use only by those who are informed about
          Korean accounting principles and practices. The accompanying
          non-consolidated financial statements have been condensed,
          restructured and translated into English (with certain expanded
          descriptions) from the Korean language financial statements.

          The accompanying non-consolidated financial statements include only
          the accounts of the Company, and do not include the accounts of any of
          its subsidiaries.

     (b)  Basis of Financial Statements Translation

          The non-consolidated financial statements are expressed in Korean Won
          and, solely for the convenience of the reader, have been translated
          into U.S. dollars at the rate of W1,153.60 to US$1, the basic exchange
          rate on March 31, 2004. These translations should not be construed as
          a representation that any or all of the amounts shown could be
          converted into U.S. dollars at this or any other rate.

     (c)  Allowance for Loan Losses

          Allowance for loan losses is provided to cover estimated losses on
          loans, based on past experience of collection and analysis of the
          collectibility of individual outstanding loans.

     (d)  Investments in Securities

          Debt and equity securities should be classified into one of the three
          categories of held-to-maturity, available-for-sale, or trading
          securities at the time of acquisition and such determination should be
          reassessed at each balance sheet date. Investments in debt securities
          that the Bank has the positive intent and ability to hold to maturity
          are classified as held-to-maturity. Securities that are bought and
          held principally for the purpose of selling them in the near term
          (thus held for only a short period of time) are classified as trading
          securities. Trading generally reflects active and frequent buying and
          selling, and trading securities are generally used to generate profit
          on short-term differences in price. Investments not classified as
          either held-to-maturity or trading securities are classified as
          available-for-sale securities.

          Trading securities are carried at fair value, with unrealized holding
          gains and losses included in earnings. Available-for-sale securities
          are carried at fair value, with unrealized holding gains and losses
          reported as a capital adjustment. Investments in equity that do not
          have readily determinable fair values are stated at cost. Declines in
          value judged to be other-than-temporary on available-for-sale
          securities are charged to current results of operations. Investments
          in debt securities that are classified into held-to-maturity are
          reported at amortized cost at the balance sheet date and such
          amortization is included in interest income.

                                      F-12
<PAGE>
                        Shinhan Financial Group Co., Ltd.

            NOTES TO NON-CONSOLIDATED FINANCIAL STATEMENTS, CONTINUED

                                 March 31, 2004

                                   (Unaudited)


(2)  Basis of Financial Statements Presentation and Summary of Significant
     Accounting Policies, Continued

     Marketable securities are at the quoted market prices as of the period end.
     Non-marketable debt securities are recorded at the fair values derived from
     the discounted cash flows by using an interest rate deemed to approximate
     the market interest rate. The market interest rate is determined by the
     issuers' credit rate announced by the accredited credit rating agencies in
     Korea. Money market funds are recorded at the fair value determined by the
     investment management companies.

     (e)  Investment Securities under the Equity Method

          Investments in affiliated companies with the Company's ownership of
          20% or more or over which the Company has significant management
          control are stated at an amount as determined using the equity method.

          Under the equity method, the Company's initial investment is recorded
          at cost and is subsequently increased to reflect the Company's share
          of the investee income and reduced to reflect the Company's share of
          the investee losses or dividends received. Any excess in the Company's
          acquisition cost over the Company's share of the investee's
          identifiable net assets is generally recorded as goodwill or other
          intangibles. Goodwill (negative goodwill) is amortized by the
          straight-line method over a reasonable period, generally less than 20
          years. When events or circumstances indicate that carrying amount may
          not be recoverable, the Company reviews goodwill for any impairment.

          Under the equity method, the Company does not record its share of
          losses of affiliate companies when such losses would make the
          Company's investment in such entity less than zero.

          For the equity method, the Company applies its own criteria in
          providing allowances for loan losses of its affiliated companies.
          Accordingly, additional allowances provided for the quarter ended
          March 31, 2004 for Chohung and Jeju Bank amount to W31,024 million and
          W1,339 million, respectively, by the equity method.

     (f)  Fixed Assets

          i)   Tangible Assets

               Tangible assets are stated at cost. Significant additions or
               improvements extending value or useful lives of assets are
               capitalized, where normal maintenance and repairs are charged to
               expense when incurred.

               The depreciation method and useful lives of tangible assets are
               as follows:

<TABLE>
<CAPTION>
                         Descriptions                     Depreciation Method                 Useful Lives
                        -------------                     -------------------                 ------------
<S>                                                       <C>                                 <C>
           Vehicles                                         Declining-balance                    5 years
           Furniture, fixtures and other                           "                               "
           Leasehold improvement                              Straight-line                        "
</TABLE>

          ii)  Intangible Assets

               Intangible assets are stated at acquisition cost less
               amortization computed using the straight-line method over 5
               years.

                                      F-13
<PAGE>
                        Shinhan Financial Group Co., Ltd.

            NOTES TO NON-CONSOLIDATED FINANCIAL STATEMENTS, CONTINUED

                                 March 31, 2004

                                   (Unaudited)


(2)  Basis of Financial Statements Presentation and Summary of Significant
     Accounting Policies, Continued

     (g)  Discounts on Debentures

          Discounts on debentures issued, which represent the difference between
          the face value of debentures issued and the issuance price of
          debentures, are amortized on the effective interest method over the
          life of the debentures. The amount amortized is included in interest
          expense.

     (h)  Income Taxes

          Income tax on the earnings or loss for the year comprises current and
          deferred tax. Income tax is recognized in the statement of earnings
          except to the extent that it relates to items recognized directly to
          equity, in which case it is recognized in equity.

          Deferred tax is provided using the asset and liability method,
          providing for temporary differences between the carrying amounts of
          assets and liabilities for financial reporting purposes and the
          amounts used for taxation purposes. The amount of deferred tax
          provided is based on the expected manner of realization or settlement
          of the carrying amount of assets and liabilities, using tax rates
          enacted or substantially enacted at the balance sheet date.

          A deferred tax asset is recognized only to the extent that it is
          probable that future taxable earnings will be available against which
          the unused tax losses and credits can be utilized. Deferred tax assets
          are reduced to the extent that it is no longer probable that the
          related tax benefit will be realized.

     (i)  Retirement and Severance Benefits

          Employees who have been with the Company for more than one year are
          entitled to lump-sum payments based on current rates of pay and length
          of service when they leave the Company. The Company's estimated
          liability under the plan which would be payable if all employees left
          on the balance sheet date is accrued in the accompanying
          non-consolidated balance sheets. A portion of the liability is covered
          by an employees' severance pay insurance where the employees have a
          vested interest in the deposit with the insurance company. The deposit
          for severance benefit insurance is, therefore, reflected in the
          accompanying balance sheets as a deduction from the liability for
          retirement and severance benefits.

     (j)  Translation of Foreign Currency Denominated Assets and Liabilities

          Monetary assets and liabilities denominated in foreign currencies are
          translated into Korean Won at the balance sheet date, with the
          resulting gains and losses recognized in current results of
          operations. Monetary assets and liabilities denominated in foreign
          currencies are translated into Korean Won at W1,153.60 and W1,197.80
          to US$1, the rate of exchange on March 31, 2004 and December 31, 2003,
          respectively, that is permitted by the Financial Accounting Standards.
          Non-monetary assets and liabilities denominated in foreign currencies,
          which are stated at historical cost, are translated into Korean Won at
          the foreign exchange rate ruling at the date of the transaction.

                                      F-14
<PAGE>
                        Shinhan Financial Group Co., Ltd.

            NOTES TO NON-CONSOLIDATED FINANCIAL STATEMENTS, CONTINUED

                                 March 31, 2004

                                   (Unaudited)


(2)  Basis of Financial Statements Presentation and Summary of Significant
     Accounting Policies, Continued

     (k)  Stock Options

          The stock option program allows the Company's employees to acquire
          shares of the Company or to be compensated for the market price
          difference. In case of stock grant type, the Company values stock
          options based upon an option pricing model under the fair value method
          and recognizes this value as an expense and a capital adjustment over
          the period in which the options vest. In case of price compensation
          type, the Company recognizes the compensation expense as an expense
          and a liability over the period in which the options vest.

     (l)  Contingent Liabilities

          Contingent losses are generally recognized as a liability when
          probable and reasonably estimable.

     (m)  Use of Estimates

          The preparation of financial statements in accordance with accounting
          principles generally accepted in the Republic of Korea requires
          management to make estimates and assumptions that affect the amounts
          reported in the financial statements and related notes to financial
          statements. Actual results could differ from those estimates.

                                      F-15
<PAGE>
                        Shinhan Financial Group Co., Ltd.

            NOTES TO NON-CONSOLIDATED FINANCIAL STATEMENTS, CONTINUED

                                 March 31, 2004

                              (In millions of Won)

                                   (Unaudited)


(3)  Cash and Due from Banks

     As of March 31, 2004 and December 31, 2003, W2.5 million of cash and due
     from banks is restricted for guarantee deposits on bank accounts.


(4)  Securities

     Securities as of March 31, 2004 and December 31, 2003 solely consists of
     investment securities accounted for by the equity method and details are as
     follows:

<TABLE>
<CAPTION>
                                                                             2004
                                        --------------------------------------------------------------------------
                                                     Acquisition
                                                         and         Equity
                                        Beginning      dividend,     method      Retain      Capital       Ending
         Subsidiaries                    balance         net       gain (loss)  earnings   adjustments    balance
         ------------                   ----------   -----------   -----------  --------   -----------   ---------
<S>                                     <C>          <C>           <C>          <C>        <C>           <C>
   Shinhan Bank                         W3,515,618     (244,807)     92,982        (377)      55,392     3,418,808
   Chohung Bank (*)                      1,887,328            -      51,343       2,324      281,554     2,222,549
   Goodmorning Shinhan Securities          546,872            -      10,005           -       (3,505)      553,372
   Shinhan Card                            163,136            -      (4,690)          -            -       158,446
   Shinhan Capital                         105,448       (8,000)      8,539           -          214       106,201
   Shinhan BNP Paribas ITMC                 22,486            -         533           -           31        23,050
   Jeju Bank                                48,092            -      (2,855)        (38)         116        45,315
   SH&C Life Insurance                      13,021            -        (326)          -          276        12,971
   e-Shinhan                                 2,725            -          25           -            -         2,750
   Shinhan Macquarie                         1,843            -         337           8            -         2,188
   Shinhan Credit Information                1,969            -        (365)          -            -         1,604
                                        ----------     --------     -------       -----      -------     ---------
                                        W6,308,538     (252,807)    155,528       1,917      334,078     6,547,254
                                        -=========     ========     =======       =====      =======     =========
</TABLE>

   Shinhan Bank and Chohung Bank are holding loans (including securities and
   guarantees and acceptances) provided to SK Networks Co., Ltd., which has been
   controlled by creditor banks in accordance with the Corporate Restructuring
   Promotion Act of the Republic of Korea, amounting to W376,391 million and
   W318,186 million, respectively. As regards to those loans, Shinhan Bank
   provides W106,358 million of allowance for loan losses and Chohung Bank
   provides W91,487 million of allowance for loan losses, as of March 31, 2004.
   Actual losses on those loans may differ materially from the management's
   assessments. The accompanying non-consolidated financial statements do not
   reflect the impact of the uncertainty on the financial position of the
   Company for the equity method.

   Additionally, Shinhan Bank, Chohung Bank and Goodmorning Shinhan Securities
   are holding loans provided to and securities issued by LG Card Co., Ltd.,
   which has been controlled by creditor banks due to its liquidity crisis,
   amounting to W272.4 billion, W253.5 billion and W4.9 billion, respectively.
   Actual losses on these loans and securities may differ materially from the
   management's assessments and the accompanying non-consolidated financial
   statements do not reflect the impact of the uncertainty on the financial
   position of the Company for the equity method. Shinhan Bank and Chohung Bank
   have provided W81.0 billion and W73.4 billion of additional capital,
   respectively, for the quarter ended March 31, 2004 and will convert W121.7
   billion and W110.3 billion of loans, respectively, to equity shares.

                                      F-16
<PAGE>
                        Shinhan Financial Group Co., Ltd.

            NOTES TO NON-CONSOLIDATED FINANCIAL STATEMENTS, CONTINUED

                                 March 31, 2004

                              (In millions of Won)

                                   (Unaudited)


(4)  Securities, Continued

     The changes in goodwill (negative goodwill) for the quarter ended March 31,
     2004 are as follows:

<TABLE>
<CAPTION>
                                                             Beginning      Increase       Amortization    Ending
                                                              balance      (decrease)       (reversal)     balance
                                                             ---------     ----------      ------------   --------
<S>                                                          <C>           <C>             <C>            <C>
   Chohung Bank                                               W846,751              -         15,478       831,273
   Goodmorning Shinhan Securities                              144,538              -          4,251       140,287
   Jeju Bank                                                    (6,276)             -           (190)       (6,086)
                                                              --------     ----------         ------       -------
                                                              W985,013              -         19,539       965,474
                                                              ========     ==========         ======       =======
</TABLE>


<TABLE>
<CAPTION>
                                                                             2003
                                        ---------------------------------------------------------------------------
                                                      Acquisition
                                                          and        Equity
                                         Beginning     dividend,     method      Retain      Capital       Ending
            Subsidiaries                  balance         net      gain (loss)  earnings   adjustments     balance
            ------------                ----------    -----------  -----------  --------   -----------    ---------
<S>                                     <C>           <C>          <C>          <C>        <C>            <C>
   Shinhan Bank                         W3,043,952     (182,592)    476,273          937      177,048     3,515,618
   Chohung Bank (*)                              -    2,057,983     (43,545)         621     (127,731)    1,887,328
   Goodmorning Shinhan Securities          531,566            -       8,787      (12,342)      18,861       546,872
   Shinhan Card                            247,460            -     (84,324)           -            -       163,136
   Shinhan Capital                          76,458            -      26,204            -        2,786       105,448
   Shinhan BNP Paribas ITMC                 22,581       (1,000)        917          (37)          25        22,486
   Jeju Bank                                46,692       (2,423)      5,189            -       (1,366)       48,092
   SH&C Life Insurance                      14,630            -      (1,684)           -           75        13,021
   e-Shinhan                                 3,892            -      (1,166)          (1)           -         2,725
   Shinhan Macquarie                           423            -       1,446          (26)           -         1,843
   Shinhan Credit Information                3,121       (1,696)        544            -            -         1,969
                                        ----------    ---------     -------      -------     --------     ---------
                                        W3,990,775    1,870,272     388,641      (10,848)      69,698     6,308,538
                                        ==========    =========     =======      =======     ========     =========
</TABLE>

     The changes in goodwill (negative goodwill) for the year ended December 31,
     2003 are as follows:

<TABLE>
<CAPTION>
                                                              Beginning     Increase       Amortization    Ending
                                                               balance     (decrease)       (reversal)     balance
                                                              ---------    ----------      ------------    -------
<S>                                                           <C>          <C>             <C>             <C>
   Chohung Bank                                               W      -     (*)866,757         20,006       846,751
   Goodmorning Shinhan Securities                              161,542              -         17,004       144,538
   Jeju Bank                                                    (7,034)             -           (758)       (6,276)
                                                              --------     ----------         ------       -------
                                                              W154,508        866,757         36,252       985,013
                                                              ========     ==========         ======       =======
</TABLE>

(*)  W26,513 million of additional goodwill through additional equity
     acquisition were included.

                                      F-17
<PAGE>
                        Shinhan Financial Group Co., Ltd.

            NOTES TO NON-CONSOLIDATED FINANCIAL STATEMENTS, CONTINUED

                                 March 31, 2004

               (In millions of Won and thousands of U.S. dollars)

                                   (Unaudited)


(5)  Loans

     (a)  Loans as of March 31, 2004 and December 31, 2003 consist of the
          following:

<TABLE>
<CAPTION>
                                                                    Won                     U.S. dollars (Note 2)
                                                          ------------------------        ------------------------
                                                             2004           2003             2004           2003
                                                          ----------     ---------        ----------     ---------
<S>                                                       <C>            <C>              <C>            <C>
       Loans in Won                                       W1,787,200     1,637,200        $1,549,237     1,419,210
       Loans in foreign currencies                           103,731       107,705            89,919        93,364
       Privately placed bonds                                200,000       200,000           173,370       173,370
                                                          ----------     ---------        ----------     ---------
                                                           2,090,931     1,944,905         1,812,526     1,685,944
       Less: allowance for loan losses                       (10,455)       (9,725)           (9,063)       (8,430)
                                                          ----------     ---------        ----------     ---------
                                                          W2,080,476     1,935,180        $1,803,463     1,677,514
                                                          ==========     =========        ==========     =========
</TABLE>

     (b)  Details of loans as of March 31, 2004 and December 31, 2003 are as
          follows:

<TABLE>
<CAPTION>
                                              Borrower            Interest rate (%)          2004           2003
                                              --------            -----------------       ----------     ---------
<S>                                    <C>                        <C>                     <C>            <C>
       Loans in Won                    Shinhan Card                  4.83~6.28            W1,200,000     1,100,000
                     "                 Shinhan Capital               4.83~8.12               587,200       537,200
                                                                                          ----------     ---------
                                                                                           1,787,200     1,637,200
       Loans in foreign currencies     Shinhan Capital             Libor+0.9~1.2             103,731       107,705
       Privately placed bonds          Shinhan Bank                     7.42                  50,000        50,000
                     "                 Goodmorning
                                        Shinhan Securities              6.23                 130,000       130,000
                     "                 Jeju Bank                        8.14                  20,000        20,000
                                                                                          ----------     ---------
                                                                                             200,000       200,000
                                                                                          ----------     ---------
                                                                                           2,090,931     1,944,905
       Less: allowance for loan losses                                                       (10,455)       (9,725)
                                                                                          ----------     ---------
                                                                                          W2,080,476     1,935,180
                                                                                          ==========     =========
</TABLE>

                                      F-18
<PAGE>
                        Shinhan Financial Group Co., Ltd.

            NOTES TO NON-CONSOLIDATED FINANCIAL STATEMENTS, CONTINUED

                                 March 31, 2004

               (In millions of Won and thousands of U.S. dollars)

                                   (Unaudited)


(5)  Loans, Continued

     (a)  The maturities of loans as of March 31, 2004 and December 31, 2003 are
          as follows:

<TABLE>
<CAPTION>
                                                                            Loans
                                                             Loans       in foreign      Privately
                At March 31, 2004                           in Won       currencies     placed bonds      Total
                -----------------                         ----------     ----------     ------------    ---------
<S>                                                       <C>            <C>            <C>             <C>
       Due in 3 months or less                            W   90,000              -              -         90,000
       Due in 6 months or less                               100,000              -        130,000        230,000
       Due after 6 months through 12 months                  277,200         34,608              -        311,808
       Due after 1 year through 3 years                    1,070,000         69,123              -      1,139,123
       Thereafter                                            250,000              -         70,000        320,000
                                                          ----------        -------        -------      ---------
                                                          W1,787,200        103,731        200,000      2,090,931
                                                          ==========        =======        =======      =========
</TABLE>


<TABLE>
<CAPTION>
                                                                            Loans
                                                             Loans       in foreign      Privately
                At December 31, 2003                        in Won       currencies     placed bonds      Total
                --------------------                      ----------     ----------     ------------    ---------
<S>                                                       <C>            <C>            <C>             <C>
       Due in 3 months or less                            W        -              -              -              -
       Due in 6 months or less                                90,000              -              -         90,000
       Due after 6 months through 12 months                   97,200              -        130,000        227,200
       Due after 1 year through 3 years                    1,220,000        107,705              -      1,327,705
       Thereafter                                            230,000              -         70,000        300,000
                                                          ----------        -------        -------      ---------
                                                          W1,637,200        107,705        200,000      1,944,905
                                                          ==========        =======        =======      =========
</TABLE>


(6)  Fixed Assets

     Fixed assets as of March 31, 2004 and December 31, 2003 consist of the
     following:

<TABLE>
<CAPTION>
                                                                    Won                     U.S. dollars (Note 2)
                                                           ----------------------          -----------------------
                                                            2004            2003             2004            2003
                                                           ------          ------          -------          ------
<S>                                                        <C>             <C>             <C>              <C>
   Property and equipment:                                 W                               $
     Vehicles                                                 391             391              339             339
     Furniture and fixtures                                 1,105             993              958             861
     Leasehold improvement and other                        1,405           1,404            1,218           1,217
                                                           ------          ------          -------          ------
                                                            2,901           2,788            2,515           2,417
   Less: Accumulated depreciation                          (1,332)         (1,182)          (1,155)         (1,025)
                                                           ------          ------          -------          ------
                                                            1,569           1,606            1,360           1,392
   Intangible assets:
     Other                                                    388             414              336             359
                                                           ------          ------          -------          ------
                                                           W1,957           2,020          $ 1,696           1,751
                                                           ======          ======          =======          ======
</TABLE>

     As of March 31, 2004, the Company maintains insurance policies covering
     loss and liability arising from automobile accidents.

                                      F-19
<PAGE>
                        Shinhan Financial Group Co., Ltd.

            NOTES TO NON-CONSOLIDATED FINANCIAL STATEMENTS, CONTINUED

                                 March 31, 2004

               (In millions of Won and thousands of U.S. dollars)

                                   (Unaudited)


(7)  Other Assets

     Other assets as of March 31, 2004 and December 31, 2003 consist of the
     following:

<TABLE>
<CAPTION>
                                                                  Won                       U.S. dollars (Note 2)
                                                          -----------------------          -----------------------
                                                           2004             2003             2004            2003
                                                          -------          ------          -------          ------
<S>                                                       <C>              <C>             <C>              <C>
   Guarantee deposits paid                                W 7,840           7,840          $ 6,796           6,796
   Accounts receivable                                      8,982           7,612            7,787           6,598
   Accrued income                                          10,973          11,334            9,512           9,825
   Advance payments                                            10              10                9               9
   Prepaid expenses                                         1,830           1,667            1,586           1,445
   Prepaid income taxes                                    14,375          13,867           12,461          12,021
   Other                                                    1,722           1,009            1,493             875
                                                          -------          ------          -------          ------
                                                          W45,732          43,339          $39,644          37,569
                                                          =======          ======          =======          ======
</TABLE>

(8)  Borrowings

     (a)  Borrowings as of March 31, 2004 and December 31, 2003 consist of the
          following:

<TABLE>
<CAPTION>
                                                                  Won                       U.S. dollars (Note 2)
                                                         ------------------------         ------------------------
                                                          2004             2003             2004            2003
                                                         --------         -------         --------         -------
<S>                                                      <C>              <C>             <C>              <C>
       Borrowings in Won                                 W190,000          94,000         $164,702          81,484
       Borrowings in foreign currencies                    69,216          71,868           60,000          62,299
                                                         --------         -------         --------         -------
                                                         W259,216         165,868         $224,702         143,783
                                                         ========         =======         ========         =======
</TABLE>

     (b)  The maturities of borrowings as of March 31, 2004 and December 31,
          2003 are as follows:

<TABLE>
<CAPTION>
                                                                                     Borrowings
                                                                 Borrowings          in foreign
                At March 31, 2004                                  in Won            currencies              Total
                -----------------                                ----------          ----------             -------
<S>                                                              <C>                 <C>                    <C>
       Due in 3 months or less                                     W 90,000                   -              90,000
       Due in 6 months or less                                      100,000                   -             100,000
       Due after 6 months through 12 months                               -              34,608              34,608
       Due after 1 years through 3 years                                  -              34,608              34,608
       Thereafter                                                         -                   -                   -
                                                                   --------              ------             -------
                                                                   W190,000              69,216             259,216
                                                                   ========              ======             =======
</TABLE>


<TABLE>
<CAPTION>
                                                                                     Borrowings
                                                                 Borrowings          in foreign
                At December 31, 2003                               in Won            currencies             Total
                --------------------                             ----------          ----------           ---------
<S>                                                              <C>                 <C>                  <C>
       Due in 3 months or less                                      W     -                   -                   -
       Due in 6 months or less                                       90,000                   -              90,000
       Due after 6 months through 12 months                           4,000                   -             234,000
       Due after 1 years through 3 years                                  -              71,868           1,697,802
       Thereafter                                                         -                   -             130,000
                                                                    -------              ------           ---------
                                                                    W94,000              71,868           2,151,802
                                                                    =======              ======           =========
</TABLE>

                                      F-20

<PAGE>
                        Shinhan Financial Group Co., Ltd.

            NOTES TO NON-CONSOLIDATED FINANCIAL STATEMENTS, CONTINUED

                                 March 31, 2004

               (In millions of Won and thousands of U.S. dollars)

                                   (Unaudited)


(9)  Debentures

     (a)  Debentures as of March 31, 2004 and December 31, 2003 consist of the
          following:

<TABLE>
<CAPTION>
                                                                  Won                      U.S. dollars (Note 2)
                                                       --------------------------       --------------------------
                                                          2004            2003             2004            2003
                                                       ----------       ---------       ----------       ---------
<S>                                                    <C>              <C>             <C>              <C>
       Korean Won debentures                           W2,000,000       1,950,000       $1,733,703       1,690,361
       Foreign currency debentures                         34,608          35,934           30,000          31,149
                                                       ----------       ---------       ----------       ---------
                                                        2,034,608       1,985,934        1,763,703       1,721,510
       Less: discounts on debentures                       (4,915)         (5,391)          (4,260)         (4,673)
                                                       ----------       ---------       ----------       ---------
                                                       W2,029,693       1,980,543       $1,759,443       1,716,837
                                                       ==========       =========       ==========       =========
</TABLE>

     (b)  The maturities of debentures as of March 31, 2004 and December 31,
          2003 are as follows:

<TABLE>
<CAPTION>
                                                               Korean Won          Foreign currency
                At March 31, 2004                              debentures            debentures             Total
                -----------------                              ----------          ----------------       ---------
<S>                                                            <C>                 <C>                    <C>
       Due in 6 months or less                                 W  130,000                     -             130,000
       Due after 6 months through 12 months                       280,000                     -             280,000
       Due after 1 years through 3 years                        1,420,000                34,608           1,454,608
       Thereafter                                                 170,000                     -             170,000
                                                               ----------                ------           ---------
                                                               W2,000,000                34,608           2,034,608
                                                               ==========                ======           =========
</TABLE>


<TABLE>
<CAPTION>
                                                               Korean Won          Foreign currency
                At December 31, 2003                           debentures            debentures             Total
                --------------------                           ----------          ----------------       ---------
<S>                                                            <C>                 <C>                    <C>
       Due in 6 months or less                                 W        -                     -                   -
       Due after 6 months through 12 months                       230,000                     -             230,000
       Due after 1 years through 3 years                        1,590,000                35,934           1,625,934
       Thereafter                                                 130,000                     -             130,000
                                                               ----------                ------           ---------
                                                               W1,950,000                35,934           1,985,934
                                                               ==========                ======           =========
</TABLE>

(10) Retirement and Severance Benefits

     Changes in retirement and severance benefits for the quarter ended March
     31, 2004 and the year ended December 31, 2003 are as follows:

<TABLE>
<CAPTION>
                                                                         Won                 U.S. dollars (Note 2)
                                                                   ------------------        ---------------------
<S>                                                                <C>           <C>         <C>              <C>
                                                                    2004         2003           2004          2003
                                                                   -----         ----          -----          ----
   Estimated severance liability at beginning of period            W 530          570          $ 459           494
   Provision                                                          53          140             46           121
   Payment                                                           (90)        (180)           (78)         (156)
                                                                   -----         ----          -----          ----
   Estimated severance liability at end of period                    493          530            427           459
   Less: deposits for severance benefit insurance                   (444)        (530)          (385)         (459)
                                                                   -----         ----          -----          ----
   Net balance at end of period                                    W  49            -          $  42             -
                                                                   =====         ====          =====          ====
</TABLE>

                                      F-21



<PAGE>
                        Shinhan Financial Group Co., Ltd.

            NOTES TO NON-CONSOLIDATED FINANCIAL STATEMENTS, CONTINUED

                                 March 31, 2004

               (In millions of Won and thousands of U.S. dollars)

                                   (Unaudited)


(11) Other Liabilities

     Other liabilities as of March 31, 2004 and December 31, 2003 consist of the
     following:

<TABLE>
<CAPTION>
                                                                         Won                 U.S. dollars (Note 2)
                                                                ---------------------       ----------------------
                                                                  2004          2003          2004           2003
                                                                --------       ------       --------        ------
<S>                                                             <C>            <C>          <C>             <C>
   Withholding taxes                                            W  4,313        1,176       $  3,739         1,020
   Dividends payable                                             214,090          928        185,584           804
   Accounts payable                                               14,059       14,492         12,187        12,562
   Accrued expenses                                               10,391       12,189          9,008        10,566
   Unearned revenue                                                1,906        1,679          1,652         1,456
                                                                --------       ------       --------        ------
                                                                W244,759       30,464       $212,170        26,408
                                                                ========       ======       ========        ======
</TABLE>


(12) Related Party Transactions

     (a)  Details of transactions

          Significant transactions with the related parties for the quarters
          ended March 31, 2004 and 2003 are as follows:

<TABLE>
<CAPTION>
            Revenue earned             Expense incurred                  Account                   2004       2003
            --------------             ----------------                  -------                  -------    ------
<S>                               <C>                          <C>                                <C>        <C>
       The Company                Shinhan Bank                 Interest income                    W 1,009     1,015
                  [ ]             Goodmorning Shinhan          Interest income                      2,023     2,023
                                   Securities
                  [ ]             Shinhan Card                 Interest income                     16,304     5,857
                  [ ]             Shinhan Capital              Interest income                      9,189     5,958
                  [ ]             Jeju Bank                    Interest income                        408       405
                                                                                                  -------    ------
                                                                                                   28,933    15,258
                                                                                                  -------    ------
       Shinhan Bank               The Company                  Rental income                            9        82
                  [ ]             Chohung Bank                 Interest income                         29         -
                  [ ]                         [ ]              Gain on derivatives                  2,867         -
                  [ ]             Goodmorning Shinhan          Interest income                        551       386
                                   Securities
                  [ ]                         [ ]              Rental income                            8         -
       Shinhan Bank               Shinhan Card                 Interest income                        379     1,013
                  [ ]                         [ ]              Fees and commission income           8,229    20,673
                  [ ]                         [ ]              Rental income                          221       218
                  [ ]             Shinhan Capital              Interest income                        743       613
                  [ ]                         [ ]              Rental income                           77        83
                  [ ]                         [ ]              Gain on derivatives                     53       473
                  [ ]             Jeju Bank                    Interest income                         53        59
                  [ ]             Shinhan Credit Information   Rental income                           61         -
                  [ ]             SH&C Life Insurance          Fees and commission income               1         -
</TABLE>

                                      F-22
<PAGE>
                        Shinhan Financial Group Co., Ltd.

            NOTES TO NON-CONSOLIDATED FINANCIAL STATEMENTS, CONTINUED

                                 March 31, 2004

                              (In millions of Won)

                                   (Unaudited)


(12) Related Party Transactions, Continued

<TABLE>
<CAPTION>
            Revenue earned             Expense incurred                  Account                   2004       2003
            --------------             ----------------                  -------                  -------    ------
<S>                               <C>                          <C>                                <C>        <C>
       Chohung Bank               Shinhan Bank                 Interest income                         35         -
                  [ ]                         [ ]              Gain on derivatives                  1,448         -
                  [ ]             Shinhan Capital              Interest income                         11         -
                  [ ]                         [ ]              Gain on derivatives                    235         -
                  [ ]             Shinhan Card                 Interest income                        223         -
       Goodmorning Shinhan        Shinhan Bank                 Interest income                        242       200
        Securities
                  [ ]             Chohung Bank                 Interest income                         61         -
                  [ ]             Shinhan Card                 Rental income                           73        52
                  [ ]                         [ ]              Fees and commission income             116         -
                  [ ]             Shinhan BNP Paribas ITMC     Rental income                           51         -
       Shinhan Card               Shinhan Bank                 Interest income                         50         -
                  [ ]                         [ ]              Fees and commission expense              4         -
                  [ ]             SH&C Life Insurance          Fees and commission expense             74         -
       Shinhan Capital            Shinhan Bank                 Interest income                        250        75
                  [ ]                         [ ]              Gain on derivatives                  1,109         -
                  [ ]             Chohung Bank                 Interest income                        337         -
       Shinhan BNP Paribas ITMC   Shinhan Bank                 Interest income                          5        72
                  [ ]                         [ ]              Fees and commission income               6         -
       SH&C Life Insurance        Shinhan Bank                 Interest income                        103       134
                  [ ]                         [ ]              Insurance income                       266         -
       e-Shinhan                  Shinhan Bank                 Interest income                         20         -
                  [ ]                         [ ]              Fees and commission income              31         -
                  [ ]             Shinhan Card                 Fees and commission income               3         -
                  [ ]             The Company                  Fees and commission income              33         -
       Shinhan Macquarie          Shinhan Bank                 Interest income                          1         -
       Shinhan Credit             Shinhan Bank                 Fees and commission income             576       559
        Information
                  [ ]                         [ ]              Interest income                         10         -
                  [ ]                         [ ]              Fees and commission income             587         -
                  [ ]             Goodmorning Shinhan          Fees and commission income               4         -
                                   Securities
                  [ ]             Shinhan Card                 Fees and commission income           1,258     1,424
                  [ ]             Shinhan Capital              Fees and commission income              30         -
                  [ ]             Jeju Bank                    Fees and commission income              69       134
                                                                                                  -------    ------
                                                                                                   20,602    26,250
                                                                                                  -------    ------
                                                                                                  W49,535    41,508
                                                                                                  =======    ======
</TABLE>

                                      F-23
<PAGE>
                        Shinhan Financial Group Co., Ltd.

            NOTES TO NON-CONSOLIDATED FINANCIAL STATEMENTS, CONTINUED

                                 March 31, 2004

                              (In millions of Won)

                                   (Unaudited)


(12) Related Party Transactions, Continued

     (b)  Account balances

          Significant balances with the related parties as of March 31, 2004 and
          December 31, 2003 are as follows:

<TABLE>
<CAPTION>
               Creditor                    Debtor                      Account                 2004         2003
               --------                    ------                      -------               ----------   ---------
<S>                               <C>                        <C>                             <C>          <C>
       The Company                Shinhan Bank               Due from banks                  W  217,082       5,327
                  [ ]                        [ ]             Loans                               50,000      50,000
                  [ ]                        [ ]             Other assets                        15,904      14,644
                  [ ]             Goodmorning                Loans                              130,000     130,000
                                   Shinhan Securities
                  [ ]                        [ ]             Other assets                           132         134
                  [ ]                        [ ]             Loans                            1,200,000   1,100,000
                  [ ]                        [ ]             Other assets                         6,564       6,541
                  [ ]             Shinhan Capital            Loans                              690,931     644,905
                  [ ]                        [ ]             Other assets                         4,792       5,066
                  [ ]             Jeju Bank                  Loans                               20,000      20,000
                  [ ]                        [ ]             Other assets                           185         186
                  [ ]             Shinhan Credit             Other assets                            49          38
                                   Information
                                                                                             ----------   ---------
                                                                                              2,335,639   1,976,841
                                                                                             ----------   ---------
       Shinhan Bank               Chohung Bank               Securities                         111,060     132,708
                  [ ]                        [ ]             Derivative assets                    3,072         797
       Shinhan Bank               Goodmorning                Loans                               30,000      30,000
                                   Shinhan Securities
                  [ ]                        [ ]             Other assets                         4,412       4,418
                  [ ]             Shinhan Card               Loans                               12,800      28,500
                  [ ]                        [ ]             Other assets                             1          87
                  [ ]             Shinhan Capital            Loans                               61,083      75,933
                  [ ]                        [ ]             Derivative assets                      114          97
                  [ ]                        [ ]             Other assets                           162         136
       Shinhan Bank               Jeju Bank                  Loans                                3,140       3,140
                  [ ]                        [ ]             Other assets                             -         561
                  [ ]             SH&C Life Insurance        Other assets                           622       1,455
       Chohung Bank               Shinhan Bank               Securities                               -      96,515
                  [ ]                        [ ]             Loans                              197,219           -
                  [ ]                        [ ]             Derivative assets                    5,282       4,324
                  [ ]                        [ ]             Other assets                            35           -
                  [ ]             Shinhan Capital            Loans                                    -         392
                  [ ]                        [ ]             Derivative assets                      237           -
                  [ ]             Shinhan Card               Loans                                7,128           -
                  [ ]             SH&C Life Insurance        Other assets                           570           -
</TABLE>

                                      F-24
<PAGE>
                        Shinhan Financial Group Co., Ltd.

            NOTES TO NON-CONSOLIDATED FINANCIAL STATEMENTS, CONTINUED

                                 March 31, 2004

                              (In millions of Won)

                                   (Unaudited)


 (12) Related Party Transactions, Continued

<TABLE>
<CAPTION>
               Creditor                    Debtor                      Account                 2004         2003
               --------                    ------                      -------               ----------   ---------
<S>                               <C>                        <C>                             <C>          <C>
       Goodmorning                Shinhan Bank               Due from banks                      14,733      53,064
        Shinhan Securities
                  [ ]                        [ ]             Other assets                         6,792       6,791
                  [ ]             Chohung Bank               Due from banks                       7,866       2,011
                  [ ]                        [ ]             Other assets                            46           8
       Shinhan Card               The Company                Other assets                         1,615         906
                  [ ]             Shinhan Bank               Cash and due from banks                433         102
                  [ ]                        [ ]             Loans                               50,000           -
                  [ ]                        [ ]             Other assets                         1,388       1,189
                  [ ]             Goodmorning                Other assets                         4,635       4,635
                                   Shinhan Securities
                  [ ]             SH&C Life Insurance        Other assets                           301         338
       Shinhan Capital            The Company                Other assets                           291         773
                  [ ]             Shinhan Bank               Short-term financial                73,752      58,231
                                                              instruments
                  [ ]                        [ ]             Derivative assets                    3,050       1,941
                  [ ]                        [ ]             Other assets                           378         400
                  [ ]             Chohung Bank               Securities                           6,366       6,714
                  [ ]                        [ ]             Derivative assets                        3           -
                  [ ]                        [ ]             Other assets                           337         173
       Shinhan BNP Paribas ITMC   Shinhan Bank               Cash and due from banks              7,446       4,436
                  [ ]                        [ ]             Other assets                            55         105
                  [ ]             Goodmorning                Other assets                         3,496       3,496
                                   Shinhan Securities
       Jeju Bank                  Shinhan Bank               Other assets                             -         561
                  [ ]             SH&C Life Insurance        Other assets                            10           -
       SH&C Life Insurance        Shinhan Bank               Cash and cash equivalents            9,802      33,563
                  [ ]                        [ ]             Other assets                            15          46
                  [ ]             Chohung Bank               Cash and cash equivalents               10           -
       e-Shinhan                  Shinhan Bank               Cash and cash equivalents            2,225       2,158
                  [ ]                        [ ]             Other assets                            24           -
       Shinhan Macquarie          Shinhan Bank               Cash and cash equivalents            3,631       1,187
       Shinhan Credit             Shinhan Bank               Cash and cash equivalents            1,818       1,686
        Information
                  [ ]                        [ ]             Other assets                         1,059       1,146
                  [ ]             Chohung Bank               Cash and cash equivalents               17           -
                  [ ]                        [ ]             Other assets                           237           -
                  [ ]             Shinhan Card               Other assets                           470         892
                  [ ]             Shinhan Capital            Other assets                             1           -
                  [ ]             Jeju Bank                  Other assets                            80         161
                                                                                             ----------   ---------
                                                                                                639,319     565,776
                                                                                             ----------   ---------
                                                                                             W2,974,958   2,542,617
                                                                                             ==========   =========
</TABLE>

                                      F-25
<PAGE>
                        Shinhan Financial Group Co., Ltd.

            NOTES TO NON-CONSOLIDATED FINANCIAL STATEMENTS, CONTINUED

                                 March 31, 2004

               (In millions of Won and thousands of U.S. dollars)

                                   (Unaudited)


(12) Related Party Transactions, Continued

     (c)  Guarantees and acceptances

          The guarantees and acceptances provided between the related parties as
          of March 31, 2004 are as follows:

<TABLE>
<CAPTION>
                                                                                                           Amount
             Creditor                     Debtor                           Account                       guaranteed
             --------                     ------                           -------                       ----------
<S>                           <C>                              <C>                                       <C>
       The Company            Goodmorning Shinhan Securities   Lease guarantee                              W50,000
       Shinhan Bank           Shinhan Capital                  Letter of credit                              19,922
               "              Shinhan Finance                  Guarantees for loans                          12,015
       Chohung Bank           Chohung Finance                  Guarantees for letter of credit                  231
                                                                                                            -------
                                                                                                            W82,168
                                                                                                            =======
</TABLE>


(13) Assets and Liabilities Denominated in Foreign Currency

     Assets and liabilities denominated in foreign currency as of March 31, 2004
     and December 31, 2003 are as follows:

<TABLE>
<CAPTION>
                                                             Foreign currency                  Equivalent Won
                                                           ---------------------           ----------------------
                                                            2004          2003               2004          2003
                                                           -------        ------           --------       -------
<S>                                                        <C>            <C>              <C>            <C>
   Assets:
     Loans                                                 $89,919        89,919           W103,731       107,705
     Other assets                                               69           426                 79           510
                                                           -------        ------           --------       -------
                                                           $89,988        90,345           W103,810       108,215
                                                           =======        ======           ========       =======
   Liabilities:
     Borrowings                                            $60,000        60,000           W 69,216        71,868
     Debentures                                             30,000        30,000             34,608        35,934
     Discounts on debentures                                   (43)          (50)               (49)          (60)
     Other liabilities                                          64           382                 74           457
                                                           -------        ------           --------       -------
                                                           $90,021        90,332           W103,849       108,199
                                                           =======        ======           ========       =======
</TABLE>

                                      F-26
<PAGE>
                        Shinhan Financial Group Co., Ltd.

            NOTES TO NON-CONSOLIDATED FINANCIAL STATEMENTS, CONTINUED

                                 March 31, 2004

                              (In millions of Won)

                                   (Unaudited)


(14) Commitments and Contingencies

     (a)  Acquisition of Chohung Bank

          On July 9, 2003, the Company made an agreement with the KDIC to
          acquire 80.04% (543,570,144 shares) of total outstanding shares in
          Chohung Bank. Additionally, in accordance with the agreement, the
          Company would be required to pay contingent consideration to the KDIC
          in relation to the earnings in the future and changes in fair value of
          assets and liabilities of Chohung Bank and the details are as follows:

          -    Asset Indemnity Payment

                 Amount       : W652,284 million - asset indemnity amount for
                                corporate loans, returned KAMCO loans and credit
                                card loans

                 Payment date : earlier of 60 days after the date asset
                                indemnity is determined as of June 30, 2005 or
                                the date as agreed on

                 Interest     : 4.3% per annum


          -    General Indemnity Payment

                 Amount       : W166,516 million (deductible any amounts due and
                                payable by the KDIC to the Company in connection
                                with the breach of representation or warranty)

                 Payment date : the second anniversary date of cash portion
                                closing date

                 Interest     : 4.3% per annum


          -    Earn Out Payment

                 Amount       : 20% of the total excess amount, which means
                                net earnings of Chohung Bank for fiscal years
                                of 2004, 2005 and 2006 in excess of W1,800
                                billion

                 Payment date : within 30 days after the date excess amount is
                                determined for the fiscal year of 2006


          These contingent considerations are not included in the acquisition
          cost on the date of acquisition, for the amount is not determinable.

     (b)  Indemnification on contingent loss

          Pursuant to the sale agreement of 50% shares in Shinhan ITMC, entered
          into between BNP Paribas Asset Management Group and the Company, the
          Company agreed to compensate BNP Paribas Asset Management Group for
          contingent loss arising from following pending lawsuit filed against
          Shinhan BNP Paribas ITMC:

<TABLE>
<CAPTION>
               Plaintiff                       Claimed for             Amount to be claimed
               ---------                       -----------             --------------------
<S>                                       <C>                          <C>
       Bumin Mutual Savings Bank          Indemnity for losses                W100
</TABLE>

          However, with regard to above pending lawsuit, the ultimate outcome of
          other lawsuits cannot be presently determined.

     (c)  As of March 31, 2004, the Company has provided a blank note to Koram
          Bank, as collateral related to bank overdrafts.

                                      F-27

<PAGE>
                        Shinhan Financial Group Co., Ltd.

            NOTES TO NON-CONSOLIDATED FINANCIAL STATEMENTS, CONTINUED

                                 March 31, 2004

                              (In millions of Won)

                                   (Unaudited)


(15) Capital Stock

     (a)  The Company issued new preferred stock for the year ended December 31,
          2003, and the details are as follows:

<TABLE>
<CAPTION>
                                              Predetermined
                                 Number of    dividend rate
                                  shares           (%)                Redeemable period
                                ----------    -------------    ---------------------------------
<S>                             <C>           <C>              <C>
Redeemable preferred stock:

  Series 1                       9,316,792        4.04         August 19, 2004 - August 18, 2006
  Series 2                       9,316,792        4.04         August 19, 2005 - August 18, 2007
  Series 3                       9,316,792        4.04         August 19, 2006 - August 18, 2008
  Series 4                       9,316,792        4.04         August 19, 2007 - August 18, 2009
  Series 5                       9,316,793        4.04         August 19, 2008 - August 18, 2010
  Series 6                       3,500,000        7.00           July 19, 2006 - August 18, 2006
  Series 7                       2,433,334        7.46           July 19, 2008 - August 18, 2008
  Series 8                          66,666        7.86           July 19, 2010 - August 18, 2010
                                ----------
                                52,583,961

Redeemable convertible preferred stock:

  Series 9 (*)                  44,720,603        2.02         August 19, 2006 - August 18, 2008
                                ----------
                                97,304,564
                                ==========
</TABLE>

(*)  Convertible period      : August 19, 2004 - August 18, 2007
     Conversion ratio        : 1 common share to 1 preferred share
     Conversion price in Won : W18,086


     (b)  Details of changes in capital stock for the year ended December 31,
          2003 are as follows:

<TABLE>
<CAPTION>
                                                                           2003
                                                    ----------------------------------------------------
                                                    Number of shares    Capital stock    Capital surplus
                                                    ----------------    -------------    ---------------
<S>                                                 <C>                 <C>              <C>
Balance at beginning of the year                       292,361,125        1,461,806         1,976,625
Redeemable preferred stock issued:
  Series 1 to 5                                         46,583,961          232,920           237,784
  Series 6 to 8                                          6,000,000           30,000           855,530
Redeemable convertible preferred stock issued:
  Series 9                                              44,720,603          223,603           228,271
Common stock issued                                      1,864,065            9,320            18,183
Stock exchange                                             176,110              881               (13)
                                                       -----------        ---------         ---------
Balance at end of the year                             391,705,864        1,958,530         3,316,380
                                                       ===========        =========         =========
</TABLE>

                                      F-28
<PAGE>
                        Shinhan Financial Group Co., Ltd.

            NOTES TO NON-CONSOLIDATED FINANCIAL STATEMENTS, CONTINUED

                                 March 31, 2004

               (In millions of Won and thousands of U.S. dollars)

                                   (Unaudited)


(16) Retained Earnings

     Retained earnings as of March 31, 2004 and December 31, 2003 consist of the
     following:

<TABLE>
<CAPTION>
                                                       Won            U.S. dollars (Note 2)
                                             ---------------------    ---------------------
                                               2004          2003       2004          2003
                                             --------      -------    --------       -------
<S>                                          <C>           <C>        <C>           <C>
Legal reserves                               W118,692       82,469    $102,888       71,488
Retained earnings before appropriations       653,126      783,929     566,163      679,550
                                             --------      -------    --------      -------
                                             W771,818      866,398    $669,051      751,038
                                             ========      =======    ========      =======
</TABLE>

     The Korean Financial Holding Company Act requires the Company to
     appropriate a minimum of 10% of annual net earnings as a legal reserve
     whenever dividends are paid until such reserve equals its paid-in capital.
     This reserve is not available for payment of cash dividends. However,
     subject to the stockholders' approval, it may be transferred to common
     stock in connection with stock dividends or used to reduce any accumulated
     deficit.


(17) Capital Adjustment

     Capital adjustments as of March 31, 2004 and December 31, 2003 consist of
     the following:

<TABLE>
<CAPTION>
                                                               Won              U.S. dollars (Note 2)
                                                      --------------------      ---------------------
                                                        2004         2003         2004          2003
                                                      --------     -------      --------      -------
<S>                                                   <C>          <C>          <C>           <C>
Unrealized gain (loss) on investment securities       W300,698     (33,379)     $260,661      (28,935)
 accounted for by the equity method
Stock options (note 18)                                 11,358       9,626         9,846        8,345
                                                      --------     -------      --------      -------
                                                      W312,056     (23,753)     $270,507      (20,590)
                                                      ========     =======      ========      =======
</TABLE>

                                      F-29
<PAGE>
                       Shinhan Financial Group Co., Ltd.

           NOTES TO NON-CONSOLIDATED FINANCIAL STATEMENTS, CONTINUED

                                 March 31, 2004

                              (In millions of Won)

                                  (Unaudited)


(18) Stock Options

     (a)  Details of stock options

<TABLE>
<CAPTION>
Grant date                     March 25, 2004              May 15, 2003               May 22, 2002
- ---------------------      ----------------------     ----------------------     ----------------------
<S>                        <C>                        <C>                        <C>
Shares granted                1,301,600 shares           1,156,300 shares           1,004,200 shares

Share expired to date                        -              37,042 shares              45,604 shares

Shares outstanding            1,301,600 shares           1,119,258 shares             958,596 shares

Type of stock options          Stock grant or             Stock grant or             Stock grant or
                             price compensation         price compensation         price compensation

Exercise price (Won)                   W21,595                    W11,800                    W18,910

Exercise period            Within 3 years after 2     Within 4 years after 2     Within 4 years after 2
                            years from grant date      years from grant date      years from grant date

Forfeited period                After 5 years              After 6 years              After 6 years
                               from grant date            from grant date            from grant date
</TABLE>

     (b)  The Company calculated the compensation cost using the fair value
          method for stock grant and details are as follows:

<TABLE>
<CAPTION>
Grant date                              March 25, 2004    May 15, 2003     May 22, 2002
- ----------------------------------      --------------    ------------     ------------
<S>                                     <C>               <C>              <C>
Risk-free interest rate                       4.39%          4.25%            6.43%
Expected exercise period                    3.5 years       4 years          4 years
Expected stock price volatility              19.85%          22.11%           27.13%
Expected dividend yield                        0%               0%              0%
Expected ratios of no-exercise                 0%               0%              0%
Weighted average fair value in Won           W7,696          W5,292           W9,812
</TABLE>

     (c)  Changes in stock compensation costs for the quarter ended March 31,
          2004 are as follows:

<TABLE>
<CAPTION>
                                                                       Personnel of
Grant date                Stock compensation cost               the Company   subsidiaries      Total
- --------------       ------------------------------------       -----------   ------------      ------
<S>                  <C>                                        <C>           <C>               <C>
March 25, 2004       Incurred during the period                 W      -               -             -
                     To be recorded in subsequent periods          2,416           7,601        10,017

May 15, 2003         Recorded at beginning of the period             442           1,489         1,931
                     Incurred during the period                      126             551           677
                     To be recorded in subsequent periods            723           2,591         3,314

May 22, 2002         Recorded at beginning of the period           1,581           6,113         7,694
                     Incurred during the period                      228             827         1,055
                     To be recorded in subsequent periods            136             520           656
</TABLE>

          For stock options, which were granted to the personnel of the
          subsidiaries, the difference between the exercise price and the fair
          value on the date of exercise would be assumed by the subsidiaries of
          the Company. Therefore, in relation to those stock options, the
          subsidiaries have recorded stock compensation costs as long-term
          payables, and the Company has accounted for as accounts receivable.

                                      F-30
<PAGE>
                        Shinhan Financial Group Co., Ltd.

            NOTES TO NON-CONSOLIDATED FINANCIAL STATEMENTS, CONTINUED

                                 March 31, 2004

               (In millions of Won and thousands of U.S. dollars)

                                   (Unaudited)


(19) General and Administrative Expenses

     Details of general and administrative expenses for the quarters ended March
     31, 2004 and 2003 are as follows:

<TABLE>
<CAPTION>
                                                               Won          U.S. dollars (Note 2)
                                                         ---------------    ---------------------
                                                          2004     2003      2004            2003
                                                         ------    -----    ------          -----
<S>                                                      <C>       <C>      <C>             <C>
Salaries and wages                                       W3,788    1,631    $3,284          1,414
Provision for retirement and severance benefits              53      267        46            231
Other employees benefits                                    226      166       196            144
Rental                                                      107       16        93             14
Entertainment                                               162      266       140            231
Depreciation                                                149      106       129             92
Amortization                                                 27       27        23             23
Bad debts                                                   730    4,116       633          3,568
Taxes and dues                                               68       53        59             46
Advertising                                                   7        2         6              1
Fees and commission                                       2,961      550     2,567            477
Other                                                       507      184       439            160
                                                         ------    -----    ------          -----
                                                         W8,785    7,384    $7,615          6,401
                                                         ======    =====    ======          =====
</TABLE>

                                      F-31
<PAGE>
                       Shinhan Financial Group Co., Ltd.

           NOTES TO NON-CONSOLIDATED FINANCIAL STATEMENTS, CONTINUED

                                 March 31, 2004

               (In millions of Won and thousands of U.S. dollars)

                                  (Unaudited)


(20) Income Taxes

     (a)  The Company is subject to income taxes based on taxable earnings,
          which results in the normal tax rate of 29.7%.

          The components of income taxes for the quarters ended March 31, 2004
          and 2003 are as follows:

<TABLE>
<CAPTION>
                                         Won              U.S. dollars (Note 2)
                               ---------------------     ----------------------
                                 2004         2003         2004          2003
                               --------      -------     --------      --------
<S>                            <C>           <C>         <C>           <C>
Current income taxes           W      -            -     $      -             -
Deferred taxes                        -            -            -             -
                               --------      -------     --------      --------
                               W      -            -     $      -             -
                               ========      =======     ========      ========
</TABLE>

     (b)  Reconciliation of accounting income and taxable income for the quarter
          ended March 31, 2004 and the year ended December 31, 2003 is as
          follows:

<TABLE>
<CAPTION>
                                                        Temporary difference      Permanent difference
                                                       ----------------------     ---------------------
                Description                              2004          2003         2004         2003
- -----------------------------------------------        --------      --------     --------     --------
<S>                                                    <C>           <C>          <C>          <C>
Addition:

  Dividends received                                   W252,807       186,896            -            -
  Accrued income earned in prior year                    11,334         4,332            -            -
  Investment securities accounted for by the
   equity method                                              -        10,848        1,917            -
  Retirement and severance benefits                          45             -            -            -
  Stock compensation cost                                     -             -          355        1,381
  Entertainment expense in excess of tax limit                -             -          140        1,434
  Other                                                       -            20            2           34
                                                       --------      --------     --------     --------
                                                        264,186       202,096        2,414        2,849
                                                       --------      --------     --------     --------
Deduction:

  Dividends received                                          -             -      250,899      186,058
  Investment securities accounted for by the
   equity method                                          1,917             -            -       10,848
  Retained earnings                                           -             -            -           20
  Accrued income earned in current year                  10,973        11,334            -            -
  Deposit for retirement and severance benefits
   insurance                                                 45           198            -            -
  Valuation gain using the equity method                155,528       388,641            -            -
  Other                                                       1             -            -            -
                                                       --------      --------     --------     --------
                                                        168,464       400,173      250,899      196,926
                                                       --------      --------     --------     --------
                                                       W 95,722      (198,077)    (248,485)    (194,077)
                                                       ========      ========     ========     ========
</TABLE>

                                      F-32
<PAGE>
                        Shinhan Financial Group Co., Ltd.

            NOTES TO NON-CONSOLIDATED FINANCIAL STATEMENTS, CONTINUED

                                 March 31, 2004

                              (In millions of Won)

                                   (Unaudited)


(20) Income Taxes, Continued

     (c)  Changes in significant accumulated temporary differences and tax
          effects for the quarter ended March 31, 2004 and the year ended
          December 31, 2003 are as follows:

<TABLE>
<CAPTION>
                                                                              2004
                                                       ----------------------------------------------------
                                                        Beginning                                  Ending
                                                       balance (*)     Increase      Decrease      balance
                                                       -----------     --------      --------      --------
<S>                                                    <C>             <C>           <C>           <C>
Temporary differences:

  Securities                                            W  12,198             -         1,917        10,281
  Retirement and severance benefits                           251            45             -           296
  Valuation gain using the equity method                 (268,310)     (155,528)     (252,807)     (171,031)
  Accrued income                                          (11,334)      (10,973)      (11,334)      (10,973)
  Deposit for severance benefit insurance                    (251)          (45)            -          (296)
  Other                                                        11             -             1            10
                                                        ---------      --------      --------      --------
                                                         (267,435)     (166,501)     (262,223)     (171,713)
                                                        ---------      --------      --------      --------
Unrealizable temporary differences on valuation gain
 using the equity method                                  263,171                                   173,938
                                                        ---------                                  --------
Net temporary differences                                  (4,264)                                    2,225
Tax effects of temporary differences                       (1,172)                                      612
Tax effects of tax loss carryforwards                      13,706                                    15,421
                                                        ---------                                  --------
Net tax effects                                            12,534                                    16,033
                                                        =========                                  ========
Tax effects recorded in financial statements (**)       W       -                                         -
                                                        =========                                  ========
</TABLE>

(*)  Amount resulting from prior year tax return is reflected in the current
     period.

(**) Tax effects on temporary differences and tax loss carryforwards are not
     recognized due to uncertainty of realization. Total amount of tax loss
     carryforwards, which are not recognized as deferred taxes, is W56,077
     million, with the tax benefit maturity of W5,553 million in 2006, W14,363
     million in 2007, W29,014 million in 2008 and W7,147 million in 2009.

                                      F-33
<PAGE>
                        Shinhan Financial Group Co., Ltd.

            NOTES TO NON-CONSOLIDATED FINANCIAL STATEMENTS, CONTINUED

                                 March 31, 2004

                              (In millions of Won)

                                   (Unaudited)


(20) Income Taxes, Continued

<TABLE>
<CAPTION>
                                                                              2003
                                                        --------------------------------------------------
                                                        Beginning                                  Ending
                                                         balance       Increase      Decrease      balance
                                                        ---------      --------      --------     --------
<S>                                                     <C>            <C>           <C>          <C>
Deductible temporary differences:
  Securities                                            W   1,351        10,848             -       12,199
  Retirement and severance benefits                           342             -             -          342
                                                        ---------      --------      --------     --------
                                                            1,693        10,848             -       12,541
                                                        ---------      --------      --------     --------
Taxable temporary differences:
  Valuation gain using the equity method                 (203,714)     (388,641)     (186,896)    (405,459)
  Accrued income                                           (4,332)      (11,334)       (4,332)     (11,334)
  Deposit for severance benefit insurance                    (332)         (198)            -         (530)
  Other                                                        (4)            -           (20)         (16)
                                                        ---------      --------      --------     --------
                                                         (208,382)     (400,173)     (191,248)    (417,307)
                                                        ---------      --------      --------     --------
     Net                                                 (206,689)                                (404,766)

Unrealizable temporary differences on valuation gain
 using the equity method                                  191,135                                  386,200
                                                        ---------                                 --------
Net temporary differences                                 (15,554)                                 (18,566)
Tax effects of temporary differences                       (4,619)                                  (5,106)
Tax effects of tax loss carryforwards                       6,295                                   13,706
                                                        ---------                                 --------
Net tax effects                                             1,676                                    8,600
                                                        =========                                 ========
Tax effects recorded in financial statements (*)        W       -                                        -
                                                        =========                                 ========
</TABLE>

(*)  Tax effects on temporary differences and tax loss carryforwards are not
     recognized due to uncertainty of realization. Total amount of tax loss
     carryforwards, which are not recognized as deferred taxes, is W49,842
     million, with the tax benefit maturity of W5,553 million in 2006, W14,363
     million in 2007 and W29,926 million in 2008.

                                      F-34
<PAGE>
                        Shinhan Financial Group Co., Ltd.

            NOTES TO NON-CONSOLIDATED FINANCIAL STATEMENTS, CONTINUED

                                 March 31, 2004

               (In millions of Won, except net earnings per share)

                                   (Unaudited)


(21) Earnings Per Share

     (a)  Earnings per share

          Earnings per common share is calculated by dividing net earnings by
          the weighted average number of shares of common stock outstanding. The
          Company's ordinary income and net earnings per share for the quarters
          ended March 31, 2004 and 2003 are computed as follows:

<TABLE>
<CAPTION>
                                                                     2004               2003
                                                                 ------------       -----------
<S>                                                              <C>                <C>
Net earnings for period                                          W    145,616            56,434
Extraordinary loss (gain)                                                   -                 -
Dividends on preferred stock                                           28,628                 -
                                                                 ------------       -----------
Ordinary income available for common stock                            116,988            56,434
Weighted average number of common shares outstanding in share     294,401,300       292,361,125
                                                                 ------------       -----------
Ordinary income per share in Won                                 W        397               193
                                                                 ============       ===========
Net earnings per share in Won                                    W        397               193
                                                                 ============       ===========
</TABLE>

     (b)  Diluted earnings per share

          For the quarter ended March 31, 2004, if convertible preferred stock
          and stock options exercised, 48,099,517 shares of common stocks would
          be issued, and if preferred stock converted into common stock on issue
          date, weighted average number of common shares outstanding is
          339,760,809. However, diluted earnings per share for the quarter ended
          March 31, 2003 are not computed because stock options have no dilutive
          effect.

          Details of diluted ordinary / net earnings per share due to dilutive
          effect for the quarter ended March 31, 2004 are as follows:

<TABLE>
<S>                                                               <C>
Ordinary income available for common stock                        W    116,988
Add: dividends on convertible preferred stock                            4,062
     stock compensation costs                                              126
                                                                  ------------
Diluted ordinary income / net earnings                                 121,176
Weighted average number of common shares outstanding in share      339,760,809
                                                                  ------------
Diluted ordinary income per share in Won                          W        357
                                                                  ============
Diluted net earnings per share in Won                             W        357
                                                                  ============
</TABLE>

     (c)  Securities applicable to common shares

<TABLE>
<CAPTION>
                                                                                  Number of shares
                                                   Convertible period              to be issued
                                          ---------------------------------       ----------------
<S>                                       <C>                                     <C>
Redeemable convertible preferred stock    August 19, 2004 - August 18, 2007          44,720,603
Stock options                                   May 22, 2004 - May 22, 2008             958,596
Stock options                                  May 15, 2005 - June 15, 2009           1,119,258
Stock options                                March 26, 2006 - March 25, 2009          1,301,060
                                                                                     ----------
                                                                                     48,099,517
                                                                                     ==========
</TABLE>

                                      F-35
<PAGE>
                        Shinhan Financial Group Co., Ltd.

            NOTES TO NON-CONSOLIDATED FINANCIAL STATEMENTS, CONTINUED

                                 March 31, 2004

                              (In millions of Won)

                                   (Unaudited)


(22) Statements of Cash Flows


     Significant transactions not involving cash inflows or outflows for the
     quarters ended March 31, 2004 and 2003 are as follows:

<TABLE>
<CAPTION>
                                                                             2004          2003
                                                                           --------       -------
<S>                                                                        <C>            <C>
Changes in capital adjustments due to the equity method                    W334,078        88,680
Changes in retained earnings due to the equity method                         1,917        12,476
Changes in unrealized gain on available-for-sale securities                       -           301
Stock options recorded as accounts receivable                                 1,378           945
Amortization offseted to retained earnings due to accounting change               -            20
Dividend payable recorded                                                   242,114       157,492
Appropriations of retained earnings as legal reserve                         36,223        60,393
</TABLE>


(23) Condensed Financial Statements of Subsidiaries

     (a)  Balance sheets

     Condensed balance sheets of subsidiaries as of March 31, 2004 and
     December 31, 2003 are as follows:

<TABLE>
<CAPTION>
                                                                              2004
                                                   ------------------------------------------------------------
                                                                                            Total stockholders'
        Subsidiaries                               Total assets        Total liabilities           equity
- ------------------------------                     ------------        -----------------    -------------------
<S>                                                <C>                 <C>                  <C>
Shinhan Bank                                       W 74,206,294            70,787,755             3,418,539
Chohung Bank                                         62,240,144            59,915,568             2,324,576
Goodmorning Shinhan Securities                        2,251,449             1,595,278               656,171
Shinhan Card                                          1,645,129             1,492,683               152,446
Shinhan Capital                                       1,222,488             1,119,741               102,747
Shinhan BNP Paribas ITMC                                 49,013                 2,914                46,099
Jeju Bank                                             1,702,026             1,602,587                99,439
SH&C Life Insurance                                     140,105               114,161                25,944
e-Shinhan                                                 3,989                   256                 3,733
Shinhan Macquarie                                        17,703                13,414                 4,289
Shinhan Credit Information                               12,657                 9,511                 3,146
                                                   ------------           -----------             ---------
                                                   W143,490,997           136,653,868             6,837,129
                                                   ============           ===========             =========
</TABLE>

<TABLE>
<CAPTION>
                                                                               2003
                                                   --------------------------------------------------------------
                                                                                              Total stockholders'
         Subsidiaries                              Total assets        Total liabilities             equity
- ------------------------------                     ------------        -----------------      -------------------
<S>                                                <C>                 <C>                    <C>
Shinhan Bank                                       W 70,066,189            66,550,821             3,515,368
Chohung Bank                                         59,227,864            57,289,224             1,938,640
Goodmorning Shinhan Securities                        2,928,017             2,290,044               637,973
Shinhan Card                                          1,778,191             1,620,555               157,636
Shinhan Capital                                       1,153,907             1,051,683               102,224
Shinhan BNP Paribas ITMC                                 47,461                 2,489                44,972
Jeju Bank                                             1,785,961             1,682,328               103,633
SH&C Life Insurance                                     114,012                87,970                26,042
e-Shinhan                                                 3,924                   225                 3,699
Shinhan Macquarie                                        11,255                 7,642                 3,613
Shinhan Credit Information                               13,588                 9,726                 3,862
                                                   ------------           -----------             ---------
                                                   W137,130,369           130,592,707             6,537,662
                                                   ============           ===========             =========
</TABLE>

                                      F-36
<PAGE>
                        Shinhan Financial Group Co., Ltd.

            NOTES TO NON-CONSOLIDATED FINANCIAL STATEMENTS, CONTINUED

                                 March 31, 2004

                              (In millions of Won)

                                   (Unaudited)


(23) Condensed Financial Statements of Subsidiaries, Continued


     (b)  Statements of Earnings

          Condensed statements of earnings of subsidiaries for the quarters
          ended March 31, 2004 and 2003 are as follows:

<TABLE>
<CAPTION>
                                                                    2004
                                   ----------------------------------------------------------------------
                                   Operating      Operating     Operating      Ordinary      Net earnings
      Subsidiaries                  revenue        expense    income (loss)  income (loss)      (loss)
- --------------------------         ----------     ---------   -------------  -------------   ------------
<S>                                <C>            <C>         <C>            <C>             <C>
Shinhan Bank                       W1,440,872     1,196,837      244,035       365,565         253,408
Chohung Bank                        1,479,113     1,438,160       40,953        36,740          36,120
Goodmorning Shinhan
 Securities (*)                       193,385       178,928       14,457        22,116          24,098
Shinhan Card                          108,895       114,080       (5,185)       (5,190)         (5,190)
Shinhan Capital                        56,245        43,435       12,810        12,141           8,309
Shinhan BNP
 Paribas ITMC (*)                       3,230         1,715        1,515         1,520           1,066
Jeju Bank                              32,539        36,528       (3,989)       (4,319)         (4,319)
SH&C life Insurance (*)                 7,880         8,532         (652)         (652)           (652)
e-Shinhan                                 638           624           14            34              34
Shinhan Macquarie (*)                   7,687         6,187        1,500         1,517             661
Shinhan Credit Information              9,248        10,149         (901)         (715)           (715)
                                   ----------     ---------      -------       -------         -------
                                   W3,339,732     3,035,175      304,557       428,757         312,820
                                   ==========     =========      =======       =======         =======
</TABLE>

(*)  Operating results from January 1, 2004 to March 31, 2004 are reflected.


<TABLE>
<CAPTION>
                                                                    2003
                                   ----------------------------------------------------------------------
                                   Operating      Operating     Operating      Ordinary      Net earnings
      Subsidiaries                  revenue        expense    income (loss)  income (loss)      (loss)
- --------------------------         ----------     ---------   -------------  -------------   ------------
<S>                                <C>            <C>         <C>            <C>             <C>
Shinhan Bank                       W1,209,894     1,046,614      163,280         133,524       93,472
Goodmorning Shinhan
 Securities (*)                       141,809       150,414       (8,605)         (5,370)     (20,022)
Shinhan Card                           98,728       133,088      (34,360)        (34,389)     (34,151)
Shinhan Capital                        41,870        36,580        5,290           5,051        3,528
Shinhan BNP
 Paribas ITMC (*)                       3,218         4,999       (1,781)         (1,910)      (1,351)
Jeju Bank                              35,596        36,319         (723)            557          557
SH&C life Insurance (*)                   545           258          287            (684)        (684)
e-Shinhan                                 572           940         (368)           (325)        (325)
Shinhan Macquarie (*)                   2,972         3,181         (209)            (24)        (148)
Shinhan Credit Information              2,230         1,897          333             338          338
                                   ----------     ---------      -------         -------      -------
                                   W1,537,434     1,414,290      123,144          96,768       41,214
                                   ==========     =========      =======         =======      =======
</TABLE>

(*)  Operating results from January 1, 2003 to March 31, 2003 are reflected.

                                      F-37
<PAGE>
                        Shinhan Financial Group Co., Ltd.

            NOTES TO NON-CONSOLIDATED FINANCIAL STATEMENTS, CONTINUED

                                 March 31, 2004

                              (In millions of Won)

                                   (Unaudited)


(24) Financing and Operating Status of the Company and Subsidiaries

     The financing and operating status of the Company and its subsidiaries as
     of March 31, 2004 and December 31, 2003 are as follows:

     (a) Financing

<TABLE>
<CAPTION>
                                                                            2004
                                             -------------------------------------------------------------
                                               Deposits        Borrowings    Debentures (*)       Total
                                             -----------       ----------    --------------    -----------
<S>                                          <C>               <C>           <C>               <C>
The Company                                  W         -          259,216       2,029,693        2,288,909
Shinhan Bank                                  41,113,275       13,772,304       9,565,011       64,450,590
Chohung Bank                                  40,970,152        5,527,186       6,085,658       52,582,996
Goodmorning Shinhan Securities                   665,469          205,394         161,000        1,031,863
Shinhan Card                                         182        1,379,594          70,000        1,449,776
Shinhan Capital                                        -          870,183          79,876          950,059
Jeju Bank                                      1,385,883           85,740          35,000        1,506,623
                                             -----------       ----------      ----------      -----------
                                             W84,134,961       22,099,617      18,026,238      124,260,816
                                             ===========       ==========      ==========      ===========
</TABLE>

(*)  Net of discounts on debentures

<TABLE>
<CAPTION>
                                                                            2003
                                              -------------------------------------------------------------
                                                Deposits        Borrowings    Debentures (*)       Total
                                              -----------       ----------    --------------    -----------
<S>                                           <C>               <C>           <C>               <C>
The Company                                   W         -          165,868       1,980,543        2,146,411
Shinhan Bank                                   41,991,839       10,621,963       9,115,997       61,729,799
Chohung Bank                                   40,030,091        5,711,922       6,424,165       52,166,178
Goodmorning Shinhan Securities                  1,032,769          657,838         161,000        1,851,607
Shinhan Card                                            -        1,318,182         259,991        1,578,173
Shinhan Capital                                         -          787,433         114,814          902,247
Jeju Bank                                       1,438,284           83,299          35,000        1,556,583
                                              -----------       ----------      ----------      -----------
                                              W84,492,983       19,346,505      18,091,510      121,930,998
                                              ===========       ==========      ==========      ===========
</TABLE>

(*)  Net of discounts on debentures

                                      F-38
<PAGE>
                        Shinhan Financial Group Co., Ltd.

            NOTES TO NON-CONSOLIDATED FINANCIAL STATEMENTS, CONTINUED

                                 March 31, 2004

                              (In millions of Won)

                                   (Unaudited)


(24) Financing and Operating Status of the Company and Subsidiaries, Continued

     (b)  Operating

<TABLE>
<CAPTION>
                                                                      2004
                                          -------------------------------------------------------------
                                                                           Cash and due
                                           Loans (*)        Securities      from bank           Total
                                          -----------       ----------     ------------     -----------
<S>                                       <C>               <C>            <C>               <C>
The Company                               W 2,080,476        6,547,254         217,082        8,844,812
Shinhan Bank                               50,701,374       14,846,741       2,569,015       68,117,130
Chohung Bank                               42,124,998       10,514,941       1,214,767       53,854,706
Goodmorning Shinhan Securities                255,834          825,811         775,329        1,856,974
Shinhan Card                                  984,494          625,397           4,079        1,613,970
Shinhan Capital                               897,052           65,264          83,952        1,046,268
Shinhan BNP Paribas ITMC                          448           10,295          30,901           41,644
Jeju Bank                                   1,290,952          226,931          39,435        1,557,318
SH&C Life Insurance                               171           54,547          14,737           69,455
e-Shinhan                                          36              107           2,225            2,368
Shinhan Macquarie                                   -                -           3,631            3,631
Shinhan Credit Information                          -                -             100              100
                                          -----------       ----------       ---------      -----------
                                          W98,335,835       33,717,288       4,955,253      137,008,376
                                          ===========       ==========       =========      ===========
</TABLE>

(*)  Net of allowance for loan losses and present value discounts


<TABLE>
<CAPTION>
                                                                      2003
                                          -------------------------------------------------------------
                                                                           Cash and due
                                           Loans (*)        Securities      from bank           Total
                                          -----------       ----------     ------------     -----------
<S>                                       <C>               <C>            <C>               <C>
The Company                               W 1,935,180        6,308,538           5,353        8,249,071
Shinhan Bank                               47,783,925       15,592,202       2,697,780       66,073,907
Chohung Bank                               42,701,666        9,208,341         548,249       52,458,256
Goodmorning Shinhan Securities                397,354        1,020,131       1,154,647        2,572,132
Shinhan Card                                1,058,667          682,841           3,886        1,745,394
Shinhan Capital                               899,140           54,388          58,232        1,011,760
Shinhan BNP Paribas ITMC                          176              680          29,498           30,354
Jeju Bank                                   1,326,103          243,024          21,122        1,590,249
SH&C Life Insurance                                44           38,650          38,511           77,205
e-Shinhan                                          36              107           2,160            2,303
Shinhan Macquarie                                   -                -           1,187            1,187
Shinhan Credit Information                          -                -           1,691            1,691
                                          -----------       ----------       ---------      -----------
                                          W96,102,291       33,148,902       4,562,316      133,813,509
                                          ===========       ==========       =========      ===========
</TABLE>

(*)  Net of allowance for loan losses and present value discounts

                                      F-39
<PAGE>
                        Shinhan Financial Group Co., Ltd.

            NOTES TO NON-CONSOLIDATED FINANCIAL STATEMENTS, CONTINUED

                                 March 31, 2004

                              (In millions of Won)

                                   (Unaudited)


(25) Contribution of Subsidiaries to the Company's Net Earning

     Effects under the equity method on the Company's net earnings for the
     quarters ended March 31, 2004 and 2003 are as follows:

<TABLE>
<CAPTION>
                                                                     2004                         2003
                                                          --------------------------    ------------------------
                                                            Amount         Ratio (%)    Amount         Ratio (%)
                                                          --------         ---------   --------        ---------
<S>                                                       <C>              <C>          <C>            <C>
Valuation gain accounted for by the equity method on:

  Shinhan Bank                                            W 92,982           59.78     W 93,722          144.81
  Chohung Bank                                              51,343           33.01            -               -
  Goodmorning Shinhan Securities                            10,005            6.43      (13,669)         (21.12)
  Shinhan Card                                              (4,690)          (3.02)     (29,150)         (45.03)
  Shinhan Capital                                            8,539            5.49       16,067          (24.82)
  Shinhan BNP Paribas ITMC                                     533            0.34         (675)          (1.04)
  Jeju Bank                                                 (2,855)          (1.84)      (1,254)          (1.94)
  SH&C Life Insurance                                         (326)          (0.21)        (342)          (0.53)
  e-Shinhan                                                     25            0.02         (239)          (0.37)
  Shinhan Macquarie                                            337            0.22          (76)          (0.12)
  Shinhan Credit Information                                  (365)          (0.22)         338            0.52
                                                          --------          ------     --------         -------
                                                           155,528          100.00       64,722          100.00
                                                                            ======                      =======
Other income                                                33,271                       18,525
Other expense                                              (43,183)                     (26,813)
                                                          --------                     --------
Net earnings for period                                   W145,616                     W 56,434
                                                          ========                     ========
</TABLE>


(26) Allowance for Loan Losses of the Company and its Subsidiaries

     Changes in allowance for loan losses of the Company and its subsidiaries
     for the quarter ended March 31, 2004 and the year ended December 31, 2003
     are as follows:

<TABLE>
<CAPTION>
                                                                    2004
                                        --------------------------------------------------------------
                                        Beginning balance        Increase (decrease)    Ending balance
                                        -----------------        -------------------    --------------
<S>                                     <C>                      <C>                    <C>
The Company                                W    9,725                     730                10,455
Shinhan Bank                                  866,428                  54,391               920,819
Chohung Bank (*)                            1,686,350                  31,517             1,717,867
Goodmorning Shinhan Securities                 43,048                 (21,016)               22,032
Shinhan Card                                  118,609                  (3,289)              115,320
Shinhan Capital                                17,899                     683                18,582
Shinhan BNP Paribas ITMC                           14                       1                    15
Jeju Bank (*)                                  35,270                  10,456                45,726
SH&C Life Insurance                                 1                       3                     4
e-Shinhan                                           8                      (2)                    6
Shinhan Macquarie                                  98                      34                   132
Shinhan Credit Information                         36                     (27)                    9
                                           ----------                 -------             ---------
                                           W2,777,486                  73,481             2,850,967
                                           ==========                 =======             =========
</TABLE>

(*)  W32,363 million of additional allowance for loan losses is included in
     ending balance.

                                      F-40
<PAGE>
                        Shinhan Financial Group Co., Ltd.

            NOTES TO NON-CONSOLIDATED FINANCIAL STATEMENTS, CONTINUED

                                March 31, 2004

                              (In millions of Won)

                                   (Unaudited)


(26) Allowance for Loan Losses of the Company and its Subsidiaries, Continued

<TABLE>
<CAPTION>
                                                                      2003
                                       ----------------------------------------------------------------
                                       Beginning balance         Increase (decrease)     Ending balance
                                       -----------------         -------------------     --------------
<S>                                    <C>                       <C>                     <C>
The Compnay                                W    3,846                    5,879                9,725
Shinhan Bank                                  565,844                  300,584              866,428
Chohung Bank (**)                           1,604,607                   81,743            1,686,350
Goodmorning Shinhan Securities (*)             87,442                  (44,394)              43,048
Shinhan Card                                   96,074                   22,535              118,609
Shinhan Capital (*)                            33,787                  (15,888)              17,899
Shinhan BNP Paribas ITMC                            8                        6                   14
Jeju Bank (*) (**)                             29,318                    5,952               35,270
SH&C Life Insurance                                 -                        1                    1
e-Shinhan                                           1                        7                    8
Shinhan Macquarie                                  22                       76                   98
Shinhan Credit Information                          -                       36                   36
                                           ----------                  -------            ---------
                                           W2,420,949                  356,537            2,777,486
                                           ==========                  =======            =========
</TABLE>

(*)  W12,952 million of additional allowance for loan losses is included in
     beginning balance.

(**) W28,170 million of additional allowance for loan losses is included in
     ending balance.


(27) Economic Environment

     In common with other Asian countries, the economic environment in the
     Republic of Korea continues to be volatile. In addition, the Korean
     government and the private sector continue to implement structural reforms
     to historical business practices including corporate governance. The
     Company may be either directly or indirectly affected by these economic
     conditions and the reform program described above. The accompanying
     non-consolidated financial statements reflect management's assessment of
     the impact to date of the economic environment on the financial position
     and results of operations of the Company. Actual results may differ
     materially from management's current assessment.

                                      F-41

</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
-----END PRIVACY-ENHANCED MESSAGE-----
