The headquarters of Shinhan Financial Group in central Seoul / Courtesy of Shinhan Financial Group

Shinhan Financial's stock price slid by over 5 percent on Wednesday over the news that BNP Paribas initiated a process to seek buyers for Shinhan shares it owns in a block trade.

Shinhan Financial Group ended at 47,000 won ($34.89), a 5.53 percent drop from the previous session over concerns of upcoming after-hour bulk selling, according to the Korea Exchange.

Financial industry sources said BNP Paribas initiated demand forecasts for the block trade of its stake in the major Korean financial group. The global financial company holds a 3.6 percent stake in Shinhan Financial Group or some 18.7 million shares.

The move is seen as the global firm's attempt to liquidate its holding over Shinhan Financial, as the two's cooperation ended three years ago.

The strategic partnership between BNP Paribas and Shinhan Financial dates back to 2002 when the two began collaborating in asset management, life insurance and non-life insurance sectors. They established Shinhan BNP Paribas Asset Management as a joint venture in 2002.

After two decades of cooperation, Shinhan BNP Paribas Asset Management was renamed to Shinhan Asset Management in early 2021, as the Korean financial group acquired the 35 percent stake of the asset management company previously held by BNP Paribas Asset Management Holdings at the end of 2020. With the stock purchase agreement, Shinhan Asset Management has become a fully-owned subsidiary of Shinhan Financial Group.