Preparing for a New Era.

SHINHAN Investment Corp. was established in August 2002 through the merger of “Good Morning Securities” and Shinhan Securities. The Shinhan Financial Group became and is the major shareholder of Shinhan Investment Corp. This merger has brought significant synergy effects to the company’s overall business operations as well as solidifying the ownership and management structure.

Focusing on stability and profitability, Shinhan Investment Corp. will put forth its best efforts to maximize shareholder value as well as satisfy valued customers with the finest financial products and services. In addition, the company is committed to providing creative and innovative services to its customers by blending a wide variety of financial facilities and functions. Korean securities firms have been making changes to cope with the start of the Capital Market Consolidation Act. Therefore, Shinhan Invetment Corp. (SIC) has recently developed two new strategic fund products in order to survive the Capital Market Consolidation Act (CMCA) era.

In August, 2009, Shinhan BNP Paribas Asset Management Co. Ltd. (SBP), a sister company of Shinhan Investment Corp., released a brand new fund named “Shinhan BNPP Volatility Balanced Fund,” on to the market. This fund sold by Shinhan Bank and Shinhan Investment Corp. is a long-term investment fund that holds stocks, preferred stocks, and bonds in order to provide both long-term growth and current income. In addition, since stocks tend to provide strong returns in different market environments from bonds, and vice versa, a mixed (hybrid) fund like “Shinhan BNPP Volatility Balanced Fund” that holds some of each may be less volatile than a strictly stock or bond fund.

As such, this fund is designed for (longterm) investors who are seeking a mixture of safety, income and modest capital appreciation (at least for three years). For this reason, the amount of the fund has been over 20 billion won in the midst of high volatility in the current market. It should be noted that no transaction fees are subject to trade after 90 days of purchase and fund returns/gains (except for interest income and dividend income) may be exempt from income tax.

This fund is currently available at the Shinhan Financial Group (www.goodi.com). In July, 2006, Shinhan Investment Corp. introduced a brand new fund, so called “Blue Chip Wrap (Myungpum Wrap),” for customers looking for long-term income-generating investments. The basic idea behind the fund is that customers only invest in the top 20 blue chip Korean securities (out of over 1,600 companies) chosen by the SIC in which prices are rising or are expected to rise in the long-run. For this, a committee consisting of specialists in a variety of different fields has been created, which reviews and makes recommendations to the SIC regarding companies that should be included in the fund.

Furthermore, this fund has been known as an “honest and trustworthy financial product” from one of the most profitable financial companies since it has offered lower trading fees compared to many other similar products currently available on the market. Over the last two years, the SIC has witnessed a substantial growth in sales; for example, sales rose to 30 billion won in August 2006, to 100 billion won in December 2006, and onto more than 200 billion won in June 2008. This trend provides evidence that the fund would be an excellent alternative for strategic investment under uncertainty; it is thus expected that the fund will be a safe investment for long-term investors for years to come.