Shinhan Financial Group Approves Quarterly Dividends at General Meeting... "Strengthening Shareholder-Friendly Policies" (Update)

Soo-geun Kwak, Hoon Bae, Yong-guk Lee, and Jae-boong Choi Newly Appointed as Outside Directors... Jin Ok-dong Reapproved as Other Non-Executive Director
Approval of 1,500 KRW per Common Share Year-End Dividend, Down 350 KRW from Previous Year... Dividend Payout Ratio Set at 22.7%

Shin Yong-byeong, Chairman of Shinhan Financial Group, is speaking at the 20th regular shareholders' meeting of Shinhan Financial Group held at the headquarters in Jung-gu, Seoul, on the morning of the 25th.

[Asia Economy Reporter Kwangho Lee] Shinhan Financial Group approved a partial amendment to its articles of incorporation for quarterly dividends at the regular shareholders' meeting on the 25th. Accordingly, dividends can now be paid quarterly in addition to the annual dividend. The appointment of four new outside directors, recommended at the regular board meeting on the 3rd, was also finalized.

Shinhan Financial Group held the 20th regular shareholders' meeting at its headquarters on Sejong-daero, Jung-gu, Seoul, and handled these agenda items. The meeting proceeded in the order of approval of the 20th fiscal year financial statements and consolidated financial statements, amendment of the articles of incorporation, appointment of directors, appointment of outside directors to the audit committee, appointment of audit committee members, and approval of director remuneration limits.

For the 2020 fiscal year-end dividend, Shinhan Financial finalized a dividend of 1,500 KRW per common share and 1,716 KRW per convertible preferred share. This is 350 KRW less than last year. The dividend payout ratio was set at 22.7%. Although this is higher than the 20% proposed by KB, Woori, and Hana Financial Groups, it slightly decreased compared to last year in accordance with financial authorities' recommendations.

To establish the basis for quarterly dividends, the articles of incorporation were amended. With the passage of this amendment, quarterly dividends in addition to annual dividends will be possible, which is expected to help raise the reduced dividend levels for shareholders.

Shinhan Financial Group Chairman Cho Yong-byeong said in his greeting, "We will do our best to continuously enhance shareholder value through shareholder-friendly policies."

Shinhan Financial Group also finalized the appointment of four new outside director candidates: Kwak Soo-geun, Professor Emeritus at Seoul National University Business School; Bae Hoon, lawyer at Orbis Law Firm; Lee Yong-guk, Clinical Professor at Seoul National University School of Law; and Choi Jae-bung, Professor in the Department of Mechanical Engineering at Sungkyunkwan University. According to the 'Act on the Corporate Governance of Financial Companies,' directors Park Cheol and Hirakawa Yuki, who completed six-year terms at Shinhan Financial Group, and director Philip Avril retired.

Shinhan Financial Group stated, "The four will strengthen activities not only for the company's growth and development but also for the protection of financial consumers and enhancement of value for various stakeholders."

Additionally, Shinhan Financial Group reappointed six outside directors whose terms expire this month: Park An-soon, Chairman of Daesung Sangsa Co., Ltd.; Byun Yang-ho, Advisor at VIG Partners; Sung Jae-ho, Professor at Sungkyunkwan University School of Law; Lee Yoon-jae, former Presidential Secretary for Finance and Economy; Choi Kyung-rok, CEO of CYS Co., Ltd.; and Heo Yong-hak, CEO of First Bridge Strategy (FBS). Furthermore, Shinhan Bank President Jin Ok-dong was reapproved as a non-executive director.

Also, Kwak Soo-geun was newly appointed as an outside director serving on the audit committee, and among outside directors, Sung Jae-ho and Lee Yoon-jae were reapproved as audit committee members.

Chairman Cho emphasized, "This year is a turning point that will determine the group's survival and growth. We will turn the current crisis into an opportunity and build a foundation for growth based on strong resilience."

Meanwhile, Shinhan Financial Group continues to grow steadily in both banking and non-banking sectors, focusing on key Asian markets. Last year, it achieved a record high net profit of 3.4146 trillion KRW. Shinhan Financial Group's management slogan for this year is 'Solid Foundation! Swift Change!' and its mid-term strategic goal is 'FRESH 2020s.'

This content was produced with the assistance of AI translation services.