SHINHAN FINANCIAL GROUP CO LTD | CIK:0001263043 | 3

  • Filed: 4/30/2018
  • Entity registrant name: SHINHAN FINANCIAL GROUP CO LTD (CIK: 0001263043)
  • Generator: Fujitsu
  • SEC filing page: http://www.sec.gov/Archives/edgar/data/1263043/000119312518141173/0001193125-18-141173-index.htm
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    • ifrs-full:DisclosureOfDefinedBenefitPlansExplanatory

    26. Employee benefits

     

      (a) Defined benefit plan assets and liabilities

    Defined benefit plan assets and liabilities as of December 31, 2016 and 2017 are as follows:

     

         2016      2017  

    Present value of defined benefit obligations

    		    W 1,689,980        1,695,191  

    Fair value of plan assets

    		      (1,559,101 )       (1,688,047 ) 
      

     

     

    		     

     

     

    		  

    Recognized liabilities for defined benefit obligations

    		    W 130,879        7,144  
      

     

     

    		     

     

     

    		  

     

      (b) Changes in the present value of defined benefit obligation and plan assets for the years ended December 31, 2016 and 2017 were as follows:

     

         2016  
         Defined benefit
    obligation    		      Plan assets      Net defined
    benefit liability    		  

    Beginning balance

    		    W 1,567,898        (1,341,768 )       226,130  

    Included in profit or loss:

    		         

    Current service cost

    		      179,811        —          179,811  

    Past service cost

    		      —          —          —    

    Interest expense (income)

    		      50,892        (44,773 )       6,119  
      

     

     

    		     

     

     

    		     

     

     

    		  
         230,703        (44,773 )       185,930  
      

     

     

    		     

     

     

    		     

     

     

    		  

    Included in other comprehensive income:

    		         

    Remeasurement loss (gain):

    		         

    - Actuarial gains (losses) arising from :

    		         

    Demographic assumptions

    		      2,344        —          2,344  

    Financial assumptions

    		      (297 )       —          (297 ) 

    Experience adjustment

    		      (41,538 )       —          (41,538 ) 

    - Return on plan assets excluding interest income

    		      —          19,448        19,448  
      

     

     

    		     

     

     

    		     

     

     

    		  
         (39,491 )       19,448        (20,043 ) 
      

     

     

    		     

     

     

    		     

     

     

    		  

    Other:

    		         

    Benefits paid by the plan

    		      (69,439 )       62,405        (7,034 ) 

    Contributions paid into the plan

    		      —          (254,413 )       (254,413 ) 

    Change in subsidiaries

    		      250        —          250  

    Effect of movements in exchange rates

    		      59        —          59  
      

     

     

    		     

     

     

    		     

     

     

    		  
         (69,130 )       (192,008 )       (261,138 ) 
      

     

     

    		     

     

     

    		     

     

     

    		  

    Ending balance

    		    W 1,689,980        (1,559,101 )       130,879  
      

     

     

    		     

     

     

    		     

     

     

    		  

     

    Profit or loss arising from defined benefit plans is included in general and administrative expenses.

     

         2017  
         Defined benefit
    obligation    		      Plan assets      Net defined benefit
    liability    		  

    Beginning balance

    		    W 1,689,980        (1,559,101 )       130,879  

    Included in profit or loss:

    		         

    Current service cost

    		      172,152        —          172,152  

    Past service cost

    		      2,810        —          2,810  

    Interest expense (income)

    		      54,485        (52,136 )       2,349  
      

     

     

    		     

     

     

    		     

     

     

    		  
         229,447        (52,136 )       177,311  
      

     

     

    		     

     

     

    		     

     

     

    		  

    Included in other comprehensive income:

    		         

    Remeasurement loss (gain):

    		         

    - Actuarial gains (losses) arising from :

    		         

    Demographic assumptions

    		      4,471        —          4,471  

    Financial assumptions

    		      (96,957 )       —          (96,957 ) 

    Experience adjustment

    		      (56,709 )       —          (56,709 ) 

    - Return on plan assets excluding interest income

    		      —          27,460        27,460  
      

     

     

    		     

     

     

    		     

     

     

    		  
         (149,195 )       27,460        (121,735 ) 
      

     

     

    		     

     

     

    		     

     

     

    		  

    Other:

    		         

    Benefits paid by the plan

    		      (74,841 )       69,857        (4,984 ) 

    Contributions paid into the plan

    		      —          (174,127 )       (174,127 ) 

    Effect of movements in exchange rates

    		      (200 )       —          (200 ) 
      

     

     

    		     

     

     

    		     

     

     

    		  
         (75,041 )       (104,270 )       (179,311 ) 
      

     

     

    		     

     

     

    		     

     

     

    		  

    Ending balance

    		    W 1,695,191        (1,688,047 )       7,144  
      

     

     

    		     

     

     

    		     

     

     

    		  

    Profit or loss arising from defined benefit plans is included in general and administrative expenses.

     

      (c) The composition of plan assets as of December 31, 2016 and 2017 are as follows:

     

         2016      2017  

    Plan assets comprise:

    		      

    Equity securities

    		    W 126,348        231,620  

    Debt securities

    		      32,838        43,990  

    Due from banks

    		      1,363,942        1,380,656  

    Other

    		      35,973        31,781  
      

     

     

    		     

     

     

    		  
       W 1,559,101        1,688,047  
      

     

     

    		     

     

     

    		  

     

      (d) Actuarial assumptions as of December 31, 2016 and 2017 are as follows:

     

         2016    2017   

    Description

    Discount rate

    		    2.78%~3.40%    2.44%~4.07%    AA0 corporate bond yields

    Future salary increase rate

    		    2.50%~5.38%

    + Upgrade rate

    		    0.99%~5.61%

    + Upgrade rate

    		    Average for 5 years

    Weighted average maturity

    		    7.25 years ~
    13.16 years    		    7.25 years ~

    9.33 years

    		   

     

      (e) Sensitivity analysis

    As of December 31, 2017, reasonably possible changes in one of the relevant actuarial assumptions, holding other assumptions constant, would have affected the defined benefit obligation by the amounts shown below.

     

         Defined benefit obligation  
         Increase      Decrease  

    Discount rate (1%p movement)

    		    W (147,071 )       164,735  

    Future salary increase rate (1%p movement)

    		      164,977        (149,641 )