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Shinhan Financial Group and BNP Paribas reinforce their strategic alliance and announce the launch of a new asset management company

Shinhan Financial Group and BNP Paribas have agreed to amend the Strategic Alliance Agreement in order to strengthen the inter-group relationship and to give birth to one of the main actors of asset management in Korea. Both groups will combine their respective capabilities to build a world-class asset management company through the merger of Shinhan BNP Paribas ITMC and SH AMC, and also to promote partnership through business cooperations in various fields and staff exchange programs.
Since the signing of the strategic alliance agreement in 2001, Shinhan Financial Group and BNP Paribas Group, a leading European global financial institution, have built mutual trust relationship through business development in asset management and bancassurance.

The new integrated asset management company aims to become #3 (in terms of combined AUM with ca. KRW 29 Tril as per end of July 2008) or #2 (in terms of revenues) in the asset management industry in Korea.

Shinhan Financial Group will hold 65% of the integrated asset management company, and BNP Paribas Investment Partners will hold 35%. Shinhan Financial Group will contribute in enhancing the local franchise and leveraging distribution capacity, and will appoint a Director who will be the CEO of the new company. BNP Paribas Investment Partners will contribute in bringing its products and investment management capability and will appoint a Director who will be Deputy CEO.

“We have decided to strengthen our alliance and to merge the two asset management companies within Shinhan Financial Group in order to respond to the fast changing domestic and overseas financial markets and obtain competitive edge in our business. We are all happy to bring our expertise and innovation capacity to this new company” said Alain Papiasse, member of the Executive Committee and head of the Asset Management and Services (AMS) Division of the BNP Paribas Group, who paid a visit to Seoul for the signing of the agreements.

” Today, we are both able to reconfirm our long-term partnership and our mutual commitment, and we hope to see further extension of the level of cooperation in the future”, CEO Lee said.

Above all, the new asset management company aims to lead the Korean asset management market in the future in terms of growth, profitability, innovation, customer confidence, and brand recognition.
Benefiting from the successful past experiences in mergers of Shinhan Financial Group, both groups are working on the integration process. Taking into consideration the approval from the regulating authorities, the two groups are aiming to launch the newly integrated asset management company early next year.

About BNP Paribas
BNP Paribas is a European leader in global banking and financial services and is one of the 4 strongest banks in the world according to Standard & Poor's. The group is present in over 85 countries, with more than 168,000 employees. The group holds key positions in three major segments: Corporate and Investment Banking, Asset Management & Services and Retail Banking. Present throughout Europe in all of its business lines, the bank's two domestic markets in retail banking are France and Italy. BNP Paribas also has a significant presence in the United States and strong positions in Asia and the emerging markets.

About BNP Paribas Investment Partners
BNP Paribas Investment Partners brings together the full palette of asset management expertise of the BNP Paribas group. Through a unique platform that offers immediate and simplified access to a broad range of specialist Partner companies, BNP Paribas Investment Partners has become a leader among the multi-specialist asset managers. At 30 June 2008, assets under management amounted to 327 billion euros*, nearly half of which was managed for institutional clients. With 2,400 professionals serving clients in 70 countries, BNP Paribas Investment Partners draws on over half a century of asset management experience and has seen ten years of steady growth through acquisitions and joint-ventures.
Through the strategic coalition initiated in October 2002 in asset management between BNP Paribas and Shinhan Financial Group, Shinhan BNP Paribas ITMC manages over KRW 16 trillion (over 10 billion euros) as per end of July 2008.
* assets under advisory included

About Shinhan Financial Group
Shinhan Group (including SH Asset Management Co, Shinhan BNP Paribas ITMC, Shinhan Bank, GoodMorning Shinhan Securities, Shinhan Capital, e-Shinhan, Shinhan Card, Shinhan Credit Information and Jeju Bank) is one of the leading financial groups in Korea, offering a broad range of products from retail banking to credit cards, investment trust and middle-market and corporate banking services.