More annual reports from Woori Financial Group Inc.:
2022 ReportW
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ori Bank 2012 a n n u a l r
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woori bank 2012 annUaL rEPorT
Contents
Special Customer Interview
Message from the CEO
Financial Highlights
News Highlights
Board of Directors & Management
Corporate Governance
Woori Bank’s Awards in 2012
Bankers
Consumer Banking
Housing Finance
U-Banking
Card Business
Global Business
International Trade Business
Financial Market Business
Corporate Banking
SME Banking
Institutional Banking
Investment Banking
Pension & Trust Business
Wealth Management(WM)
sustainability
Consumer Protection-Cham(responsible) Keumyung(finance)
Social Contribution Activities
Woori Smile Microcredit
Ethical Management
Risk Management
Employee Satisfaction
Financial Review
Management’s Discussion and Analysis
Independent Auditor’s Report
Organization
Global Network
004
016
020
022
024
026
028
034
036
040
042
046
048
050
054
056
058
060
064
066
070
072
074
076
078
080
084
088
178
180
002
003
a bank do
in your life?
?What can
Woori Bank is
a bank you can bank on for your money,
and your hopes and dreams,
a bank that consistently charts the course first,
a bank that extends a helping hand
in times of trouble as a partner in life, and
a bank that helps you plan your future.
003
woori bank 2012 annUaL rEPorT
“ Cherishing your precious
dreams and hopes.”
004
005
Dream Q : There must be a bank my child can use
for the first time that can foster his/her habit
to save and open the door of hopes and
dreams for a better future.
a : woori bank will achieve the ability to
finance dreams and convey hopes for all.
woori bank is committed to become
a financial mentor that brightens the
future by cherishing the hopes and
dreams of our individual customers.
005
woori bank 2012 annUaL rEPorT
006
007
Lead “ I want to experience
advanced banking
services.”
Q : How can I access daily banking services in an
easier, faster and smarter way?
a : woori bank leads the smart banking
service revolution and is making every effort
to improve necessary services and promptly
provide customized products and services.
007
“ I need insightful
advice to set my course
for the future.”
008
009
Insi ght Q : I confront numerous challenges in advancing to the
global market as my business expands.
I need some guidance to transform these challenges into
new opportunities.
a : woori bank looks to the future, makes
preemptive preparation and proposes a new path.
woori bank is a leading global bank that creates
better opportunities.
009
Insi ght “ I need help in
moments of trouble.”
Q : In managing a company, I confront moments of
financial constraints. Would there be a warm-hearted
bank that extends a helping hand in moments of crises?
a : woori bank is a warm-hearted bank that
prioritizes the benefits of our customers.
we will serve as a reliable financial partner that
offers practical solutions to our corporate customers.
010
011
011
Protection 012
013
Comfort “ I need to brace for
stability in the future.”
Q : Long-term preparation is essential in securing
a post-retirement life of comfort and affluence.
Receiving a safe and reliable banking services
for a sound future is also essential.
a : woori bank is a reliable bank that safely protects
and fosters the precious assets of our customers.
we do our utmost to secure your comfortable
and affluent post-retirement life.
013
woori bank 2012 annUaL rEPorT
!Woori Bank
pioneers to play
genuine roles
in finance.
014
015
Amid the global economic downturn, the economic situation is challenging,
both at home and abroad. The roles and responsibilities of finance are
critical in times of trouble. Playing a genuine financial role
as a robust partner in the real economy is what a bank should do.
In 1899, Woori Bank embarked on a journey for renewed hopes and
dreams, which was driven by the domestic capital in a place of financial
barrenness. For the past 114 years, the Bank has helped spearhead
the industrialization and modernization of the national economy, and
played a pivotal role in fostering and supporting companies as Korea’s top
bank in corporate banking. Carrying on the solemn founding principle,
“Development in finance is the basis for economic development”,
we seek to play a genuine role in finance by recovering companies in
need, empowering customers and imbuing vibrancy to the public and
the national economy through mutual growth and sharing.
In 2013, Woori Bank will reaffirm its presence beyond its number 1
ranking in Korea, to one of ‘Asia’s Top 10 Banks’.
Based on our ever-strong profit-oriented management and customer trust
(under the goal of becoming ‘a beloved bank that crystalizes hopes’),
we will reinforce profitability and competitiveness.
015
woori bank 2012 annUaL rEPorT
Message from the Ceo
I would like to extend my sincere appreciation to all our customers for giving Woori Bank your trust
and commitment over these past years.
Woori, means ‘we’ in Korean, and our bank is a socially responsive participant, working hand-in-
hand with people from all works of life, thereby contributing to the economic development of
Korea.
As Korea’s indigenous bank, Woori grew with Korean people and corporations for the past 114
years. During the long history, together with our customers we went through all the highs and
lows of our nation’s remarkable development, during which the bank has come to be recognized
as the country’s icon ‘responsible bank‘ that stands together with its customers and the economy in
building wealth and a comfortable life.
Since the downturn after the global crisis in 2008, Woori Bank has also taken a major role to assist
in the workout process for companies undergoing temporary liquidity problems, support corporate
clients in overcoming financial crisis by offering urgent funding, and provide customized consulting
services for the normalization of financial statements.
With the reminiscence of the past market turbulence, many changes are expected in the Korean
banking sector such as continuing uncertainties of the global financial crisis, regulatory reform on
business models and rising competition in the domestic market.
However, Woori Bank reaffirmed our competitiveness and generated a stable profit by recording a
net income that surpassed KRW 1 trillion for three straight years from 2010 and marking KRW 1,449
billion in 2012.
Moreover, other profitability indicators such as ROA and ROE reached satisfactory levels of 0.49%
and 6.89% respectively, and the capital efficiency of our bank the BIS capital adequacy ratio posted
a positive level 14.70%.
016
017
“
as korea’s indigenous
bank, woori grew
with korean people
and corporations for
the past 114 years.
”
017
woori bank 2012 annUaL rEPorT
Although unfavorable economic circumstances inevitably
caused bad debts to increase, our exceptional efforts to
minimize the increase of the Non Performing Loan (NPL)
ratio was positively realized by marking 1.66% as of year-end
2012, a similar level from the previous year. This remarkable
outcome was due to our strengthening of the fundamental by
focusing on high-yield driven assets and also our cleaning up
of the balance sheet by strategically selling and writing-off our
bad debts.
In addition, in 2012 Woori Bank successfully achieved the
two major objectives of positively achieving intrinsic growth
and actively fulfilling our social duty. Our bank stood at the
forefront to rightfully protect our consumers’ rights and
provide Microcredit loans to SMEs in need. As a recognition
of our painstaking efforts, backed up by the unyielding
support and unsparing encouragement of our staff and our
customers, we won the grand ‘Financial Consumer Protection
Award‘ and ‘Microcredit Award‘ prizes.
Distinguished customers,
“
by sharing hearts
and practicing
Cham(responsible)
keumyung(finance)
harmoniously, we
will continue to
work hard and
become korea’s no.
1 bank that gives
hopes and dreams
to our customers
throughout the year.
”
While the national economy in 2013 is expected to undergo an unprecedentedly elongated phase
of low-growth and low-interest rate environment, banks are likely to confront the three major
challenges: low growth, low margins and high risks.
As a consequence, like other Korean banks Woori Bank will inevitably face a slowdown in growth
with squeezed profit margins and an increase of NPL level that may lead to weaker asset quality.
However, we will conduct thorough risk management, maximize cost efficiency and optimize
revenue structures to generate long-term stable growth, and thereby turn each crisis into new
opportunities and take a greater leap from the year 2013.
We will especially take care to ensure that Woori Bank becomes a ‘Clean Bank‘ by improving our
risk management system and establishing a sound credit culture.
018
019
In preparation for low-income prolonging structures, Woori Bank will aim for higher productivity by
focusing on low-cost and high efficiency schemes to improve cost efficiency and work processes.
The Net Interest Margin (NIM) will be maintained at an optimum level, and the non-interest income
will be scaled-up for a stable profit base, along with profit oriented growth that targets high-yield
customers and assets.
We will secure future growth engines by pushing ourselves further to explore emerging markets
through the exploration of cutting-edge projects and overseas advancements. Furthermore, the
expertise of individual staff members, as well as the quality of all our products and services, will be
upgraded to meet our customers‘ unique financial needs.
Lastly, Woori Bank will continue to take a leadership role in stabilizing people‘s livelihood as a
treasury bank of the National Housing Fund.
With the support of our customers, we have been for the last 114 years, and will continue to be
the ‘representative traditional bank’ of Korea. By sharing hearts and practicing Cham(responsible)
Keumyung(finance) harmoniously, we will continue to work hard and become Korea‘s No. 1 bank
that gives hopes and dreams to our customers throughout the year.
As we strive to present greater profits and happiness to our customers, I sincerely ask for your
contiuous encouragement and support to fulfill our vision in becoming Korea‘s No.1 bank.
Please accept my warm wishes for your health, happiness and prosperity throughout the year.
Thank you.
lee, Soon Woo
President and Chief Executive Officer
019
woori bank 2012 annUaL rEPorT
Financial Highlights
247,248
242,472
1,449
228,555
2,069
1,261
net income
(Unit: KRW billion)
1,449
2010
2011
2012
0.59
0.49
0.49
total aSSetS
(Unit: KRW billion)
247,248
2010
2011
2012
7.98
7.93
6.89
roa
(Unit: %)
0.49
2010
2011
2012
14.70
14.65
13.78
roe
(Unit: %)
6.89
2010
2011
2012
11.40
11.35
10.74
2010
2011
2012
BiS ratio
(Unit: %)
14.70
2010
2011
2012
tier i ratio
(Unit: %)
11.35
020
021
Balance Sheet (Unit: KRW billion)
Total assets
Cash and Due from banks
Financial assets at fair value through profit or loss
Available for sale financial assets
Held to maturity financial assets
Loans and receivables
Other assets
Total liabilities
Deposits due to customers
Borrowings
Other Liabilities
Equity ownership of controlled entity
Capital Stock
Hybrid equity securities
Capital Surplus
Other equity
Retained earnings
(Planned regulatory reserve for credit loss)
non-controlling entity
Total Stockholders' Equity
Total Liabilities and Stockholders' Equity
* k-iFrS(korean international Financing reporting Standards)
income Statement (Unit: KRW billion)
Operating income
Net interest income
Net fee income
SG&A Expense
Other operating income (expense)
Non-operating income
Income before income tax
Income tax expense
net income
* k-iFrS(korean international Financing reporting Standards)
2012
247,248
4,593
9,856
14,485
14,342
200,049
3,925
228,682
168,008
17,446
43,228
18,558
3,830
1,682
812
12,104
-259
8
18,566
247,248
2012
1,699
5,612
499
2,728
-1,684
76
1,775
327
1,449
2011
242,472
5,389
11,318
14,671
15,400
191,909
3,785
224,346
164,092
19,175
41,079
18,118
3,830
1,682
812
11,256
-1,124
8
18,126
242,472
2011
2,593
5,728
508
2,549
-1,094
66
2,659
590
2,069
021
woori bank 2012 annUaL rEPorT
news Highlights
Hansae basketball Team on winning
Spree
In April, the Woori Bank Hansae Bas-
ketball Team completely reshuffled its
coaching group to make Wi, Sung Woo
the new manager(head coach) and Chun,
Joo Won and Park, Sung Bae the new
assistant coaches. This helped the team
turn over a new leaf and rebuild its pres-
tige as a big name in women’s profes-
sional basketball league.
Under the leadership of the new coach
troupe, players concentrated intensely on
training throughout the whole summer.
Even when players were struggling with
physically challenging conditions, the
team never wavered in conducting train-
ings, and adhered to the motto: “Sweat
never betrays us.” The players’ physical
strength and defense caliber excelled
after steady tests of endurance, and in
time, they confidently rid themselves of
their notoriety for ‘being bottom in the
ranks’. For the first time in the team’s his-
tory since it had begun as a single league,
it dominated the first rank by winning
eight consecutive times.
Their strategy this season was to mini-
mize point losses with a ‘suffocating
defense’ that was driven by strong
physical strength. The Hansae Basketball
Team recorded the fewest points losses
among six women’s professional bas-
ketball league teams, ranking second in
the points it obtained. Yet, perhaps the
biggest difference in the team, is in the
attitude of the players, who have shed
off defeatism and gained confidence by
obtaining their victory.
It is now a thing of the past to see the
team collapse due to lack of confidence
especially near the end of each game
after a successful performance. Woori
Bank’s Hansae Basketball Team imbues
high hopes for its path forward by trans-
forming from a losing team to a winning
team with confident plays and suffocat-
ing defenses and thereby causing a stir in
the field.
ing customer complaints in the financial
sector and also appointing the Chief Cus-
tomer Officer(CCO) in charge to manage
this independent unit effectively.
In 2012, Woori Bank suggested the ‘Ten
Critical Tasks for Cham (responsible)
Keumyung(finance)’ to protect the rights
of financial consumers and to fulfill its
social responsibilities. This created a big
positive stir in the financial sector, as their
key focus is to support the underprivi-
leged.
winning the Grand Prize in the Com-
prehensive Sector at the 1st Financial
Consumer Protection awards
The First korean bank to Expand the
Sales network to all of the briCs as the
First bank in korea
Woori Bank received the Grand Prize in
the comprehensive sector at the 1st First
Consumer Protection Awards (presented
by the chairman of the Financial Services
Commission(FSC)).
The award was designed by the FSC, the
Financial Supervisory Service(FSS) and
the Korean Federation of Banks to rec-
ognize the efforts of financial institutions
or banks that stood at the forefront in
protecting and empowering the rights of
financial consumers and boosting their
social interest.
Such an outstanding achievement is a
result of our efforts to protect consumer
rights and benefits by establishing the
Consumer Protection Center, a first-of-
its-kind independent unit (governed right
under the President /CEO and Deputy
President/Director) for swiftly address-
Woori Bank’s zeal for global management
gained momentum through the establish-
ment of a business network in BRICs (Bra-
zil, Russia, India and China).
Starting with the Chengdu Branch in
Chengdu City in the Sichuan Province in
China on January 16, Woori Bank opened
the Chennai Branch in India, where many
Korean companies have made inroads
into India in April. Banking operations
kicked off in full swing at the subsidiary
in Brazil (Woori Bank Brazil) in Septem-
ber, enabling us to stretch our network to
each country in BRICs, as the first Korean
bank.
Our global presence stretch from China,
India, Brazil and expand further to Myan-
mar, where we opened the Woori Bank
Yangon Representative Office in Myan-
mar.
022
023
taking out a queuing ticket and thereby
shorten their sense of time waiting for
attendance. At the Play Zone, customers
can complete their transactions through
the authentication of name and data in-
put with the Smart ATM. At the Consult-
ing Zone, various programs and financial
consulting, such as student loans, are
provided. The Smart Branch No.2 (in
Ewha Woman’s University), has a powder
room installed for the convenience of
women in their 20’s and 30’s. As such,
services fit for youthful customers, with
various emotional marketing, are avail-
able.
With the Yangon Representative Office in
place, Woori Bank established the South-
eastern Belt covering India(Chennai),
B a n g l a d e s h ( D h a k a , C h i t t a g o n g ) ,
M yanmar ( Yang on), Vietnam(Hanoi,
Ho Chi Minh), Indonesia(Jakarta), and
Malaysia(Kuala Lumpur).
With a robust sales network in Southeast
Asia following those in BRICs, Woori
Bank has 59 networks in 16 countries
as of 2012. This prepared us to bolster
international business through the active
expansion of networks and M&As to be-
come one of the top ten banks in Asia.
Designated as an Entrusted bank for
South Chungcheong Province’s Fund
Management and a Treasury bank for
Sejong City
Last January, Woori Bank came up with
a springboard to expand public funds in
Chungcheong Province.
We were designated as an entrusted
bank for the South Chungcheong Pro-
vincial Office last January until 2015 for
a total of 12 funds, including the SME
Development Fund and the Disaster
Management Fund, worth KRW 330.8
billion. It was also fortunate that, after
a fierce competition last June, Woori
Bank was proudly selected as the first
treasury bank of a newly transferred ad-
ministrative capital, Sejong Special Self-
Governing City. Because of the symbolic
importance of being designated as the
treasury bank for the new administrative
capital city, six commercial banks were
engaged in a heated competition. Woori
Bank by emphasizing our unyielding driv-
ing force and our strength in serving as a
treasury bank for the Seoul Metropolitan
Government over 100 years, won the bid
and was designated as the first treasury
bank for the Sejong Special Self-Govern-
ing City.
opened Smart branches - woori for
the Twenties
Woori Bank opened Smart Branches
No.1(in Korea University) and No.2(in
Ewha Woman’s University) in conjunc-
tion with the scheme of establishing
‘Woori for the Twenties’ branches last
September. ‘Woori for the Twenties’ is
a next-generation branch with a greater
focus on non-face-to-face channels and
the addition of a new step, allowing
‘pre-entry’ of required information for
banking so that customers can handle
various tasks on their own.
The Smart Branch is divided into differ-
ent parts: ‘Media Façade’ offering pro-
motional videos, Facebook and bus ar-
rival information; ‘Media Table’, a space
for the recommendation of financial
items and events; and ‘Imaging Zone’ to
print photos from smart devices.
For increased convenience, customers
who pre-enter transaction information at
the ‘Start Zone’ can comfortably search
for information and have fun at the Me-
dia Table during their waiting time after
023
woori bank 2012 annUaL rEPorT
Board of Directors & Management
kim, Yong woo
Lee, Soon woo
kim, Yang Jin
Standing directorS
Lee, Soon woo
kim, Yang Jin
kim, Yong woo
President & Chief Executive officer
Deputy President / Director
Standing audit Committee Member / Director
• Deputy President / Director
• Deputy President & Head, Consumer
Banking Business Unit, Woori Bank
• Executive Vice President, Consumer
Banking Business Unit, Woori Bank
• Executive Vice President, Management
Support Unit, Woori Bank
• Head, Corporate Financial Unit, Hanvit
Bank
• MBA, Korea University Business School
• B.A. in Law, Sungkyunkwan University
024
025
• Executive Vice President, Operation &
• 2nd Deputy Secretary General, The Board of
Support Unit, Woori Bank
Audit and Inspection of Korea
• Compliance Officer, Woori Bank
• Senior Relationship Manager,
Jung-ang Corporate Banking Center,
Woori Bank
• Head, Synergy Promotion Dept,
Woori Bank
• B.A. in Agricultural Education,
Seoul National University
• Deputy Director, The Board of Audit and
Inspection of Korea
• Passed the 23rd National Administrative
Examination
• M.A. in Public Administration, Syracuse
University
• B.A. in Economics, Yonsei University
non-Standing director
outSide directorS
Lee, Pal Seung
Lee, Yong keun
Lee, kwi nam
• Current) Chairman & CEO,
Woori Financial Group
• Current) 5th Chairman of the Board,
Korea Foundation for International
Culture Exchange
• Current) President, Woori Multicultural
Scholarship Foundation
• CEO, Seoul Philharmonic Orchestra
• President & CEO, Woori Investment &
Securities
• Managing Director, Hanil Bank
• AIM(Advanced Information Management)
• Adviser, Korea Anderson Group
• 2nd President, Financial Supervisory
Commission and President of
Financial Supervisory Service
• Executive Director,
Asia Development Bank
• Passed the 9th National Administrative
Examination, Division of Finance and
Economy
• Ph.D in Public Administration,
Han Yang University
• B.A. in Economics, Korea University
• Current) Attorney, LKN Law Institute
• 61st Minister, Ministry of Justice
Republic of Korea
• Vice Minister, Ministry of Justice
Republic of Korea
• Passed the 22nd National Bar Exam
• B.A. in Public Administration,
Korea University
Program, KAIST
• MBA, Korea University
• B.A. in Law, Korea University
Yoo, kwan Hee
kim, Jung Sik
• Current) Professor, Business Administration
• Current) Dean, College of Business &
and Management, Korea University
• Current) Chairman, Korean Academic
Society of Business Administration
Economics, Yonsei University
• Current) Dean, Graduate School of
Economics, Yonsei University
• Chairman, Korean Association of Small
• Managing Director, Korea Money &
Business Studies
Finance Association
• Ph.D in Business Administration and
Management, Indiana State University
• Professor, College of Business &
Economics, Yonsei University
• B.A. in Business Administration and
• Ph.D. in Economics, Claremont Graduate
Management, Seoul National University
University
• B.A. in Economics, Yonsei University
Chung, wook Ho
Chang, Min
• Current) Head, Department of
Special Asset Management,
Korea Deposit Insurance Corporation (KDIC)
• Head, Department of Risk ManagementⅡ,
KDIC
• Head, Department of Asset Recovery
Department, KDIC
• B.A. in Law, Sungkyunkwan University
• Senior Research Fellow / Director,
Research Coordination Division,
Korea Institute of Finance
• Adviser of the Chairman, Financial Services
Commission
• Senior Manager, Policy Coordination
Supervisory Team, Policy Planning &
Coordination Department, Bank of Korea
• Ph.D. in Economics, Michigan State University
• B.A. in Economics, Seoul National University
executive vice preSident
Jung, Hwa Young
• Human Resources Unit
kim, Jang Hag
• Small & Medium Corporate Banking
Business Unit
Lee, kwang Goo
• Consumer Banking Business Unit
baeg, Goog Jong
• Corporate Banking Business Unit
kim, byung Hyo
• Finance & Management Planning Unit
rhee, Young Tae
• Risk Management Unit
Lee, Dong Gun
• Credit Support Unit
Huh, Jong Hee
• Institutional Banking Business Unit
Park, Tae Yong
• Global Business Unit
kwon, ki Hyung
• Financial Market Business Unit
kim, Jin Seok
• Card Business Unit
(set to spin-off in April 1, 2013 as a new
subsidiary of Woori Financial Group)
025
woori bank 2012 annUaL rEPorT
Corporate Governance
organization of the Board of directorS
As of the end of March 2013, Woori Bank’s Board of
Directors consisted of 10 executive directors: one non-
standing director, three standing directors and six outside
directors, appointed to increase the relevant expertise and
independence of the Board. The six outside directors were
selected based on their experience in the fields of finance,
management, law, accounting and public relations; many
are also well-known public figures. They support and
monitor the Bank’s strategic decision-making and overall
business affairs on a regular basis.
major activitieS for 2012
The Board held 14 meetings in 2012 to discuss a total of
49 pending issues and 53 briefings for decision-making
and deliberation, and the overall attendance rate of out-
side directors was 92%.
Directors from various fields collected information from
the Bank through internal and external activities, and
then offered site-oriented advice based on these activi-
ties and their expertise. This made a significant contribu-
tion to improving management. The directors who were
experts in economics and law managed the Board by
discussions and feedbacks. In so doing, they promoted
effective bank management and maximized shareholder
value.
In 2012, the Board found consensus in the quarterly
management records at each meeting, and held general
discussions and communication regarding various mat-
ters. The agenda of theses various meetings included: re-
ports on the submission of plans for the implementation
of the Memorandum of Understanding(MOU) signed
with the Financial Supervisory Service(FSS); the results
and details of the MOU implementation with Korea De-
posit Insurance Corporation(KDIC); plans to issue foreign
currency-denominated bonds; comprehensive briefings
regarding major loans; briefings on NPLs; a review of the
orders implemented by the Board of Directors, as well as
a discussion concerning the outcome of the reviews and
a rundown of the activities of the various committees
under the Board of Directors. At the December meeting,
the Board also confirmed its 2012 draft management
plan, following in-depth discussions on several issues fac-
ing the Bank amid continuing market changes.
committeeS under the Board of directorS
To support the efficient operation of the Board of Direc-
tors, Woori Bank has established the Board Governance
Committee, Board Risk Management Committee, Board
Audit Committee, Board Compensation Committee, and
Board Audit Committee Member Recommendation Com-
mittee.
Type of Meeting
no. of
agenda
issues
no. of
briefings
Major issues
Holding regular shareholders’ meeting, operating the Board of Direc-
tors / Board of Directors’ Management Committee, discussing corporate
governance issues, setting and implementing management plans and
strategies(launching and realigning divisions)
Approving and modifying the settlement of financial statements, report-
ing and planning financial records, briefing on results and actions for re-
viewing the MOU, planning for issuing bonds (including foreign currency
bonds), and managing credit limits
Briefing comprehensively on major loans, investing in private equity
funds, selling off NPLs, briefing on the status of NPLs, Appraising the
commitments of investment companies to invest, dealing with audit and
internal control issues, and managing and supporting special guarantee
contributions of institutions for SMEs
Carrying out performance evaluations / compensation, appointing staff,
and addressing issues related to labor-management relations
Shareholders’ Meeting,
BOD and Corporate
Governance, etc
Accounting/
Financial Management
Portfolio &
Risk Management/
Investment/
Audit & Inspection/
Gov’t Regulation
HR/Organizational
Management
Others
Total
026
027
20
11
2
3
13
49
16
12
14
3
8
53
• board Governance Committee
• board Compensation Committee
The Committee actively supports the Board of Directors
by studying/reviewing the overall function & operation
of the Board and also by deciding/examining manage-
ment schemes regarding handover & training issues.
The Committee also acts as the Outside Director Candi-
date Recommendation Committee, pursuant to Article
22-3 of the Bank Act.
• board risk Management Committee
The Committee decides on risk-related policies and
strategies in response to the changes in the financial
environment. The Committee meets at least quarterly
and on an ad hoc basis to deliberate on risk manage-
ment strategies and policies, risk tolerance levels and
transactions or exposures, and thereby discern, mea-
sure and monitor overall risks in a timely manner.
• board audit Committee
The Committee establishes and executes internal audit
plans, implements outcome evaluations, and imple-
ments ex-post audit measures to improve the already
adequate internal control system and effectively evalu-
ate management performance measures.
The Committee is independent from the Bank’s manage-
ment, and is in charge of establishing compensation
policies, and monitoring the design and operation of the
Bank’s performance-based compensation systems.
• board audit Committee Member recommendation
Committee
The Committee recommends candidates for the Audit
Committee.
planS for 2013
In 2013, the Board will make significant contributions
to the Bank’s management by discussing major issues
at regular meetings. By end-March 2013, the Board of
Directors had already met seven times, with agendas
that included such issues as, the approval of financial
statements as of year-end 2012. After March, the Board
meetings will continue to focus on issues such as the
analysis of management performance and the 2014
management plan. Meetings will also be held on an ad-
hoc basis whenever needed, dealing with issues such as
management goals, organization and financing.
In 2013, Woori Bank will serve as a reliable partner bank
that excels and grows through transparent and efficient
management innovation.
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woori bank 2012 annUaL rEPorT
114 years
of history tells
Overcome the harsh environment and grow stronger(雲根凍竹)
: Winter bamboo grow its roots deep into the frozen rock crevices
Woori Bank being the longest-running bank in Korea has devoted its utmost endeavors everlastingly for 114 years
to serve as the Korea’s leading iconic bank. Since being designated as Korea’s Bank of Highest Excellence in
2011, we are determined to make greatest achievements again in the future.
Some would say that with such achievements, we might take a pause and keep our composure.
However, our passionate journey will continue throughout 2013 driven by our customers’ trust and confidence.
We are No.1 bank in Korea with the highest customer convenience - a leading global bank to represent Korea.
▶’The Bank of the Year in Korea’ by The Banker 5 times since 2004.
028
029
Woori Bank’s Awards 2012
The Leading Counterparty Bank in
South Korea
Gold Prize of LACP
(League of American
Communications Professionals)
Annual Report Competition
Bronze Prize of ARC
(Annual Report Competion)
Most Valuable Product of 2012
THE PROUD 100 Products of Korea
’TWO CHAIRS’
- Grand Prize of 2012 Korean
Customer Satisfaction Award
Asian Economies
2012 Asia PB
(Private Banking) Awards
1st Prize in the Competition for
Best AML(Anti-Money Laundering)
Practice in 2012
The Presidential Citation for
AML(Anti-Money Laundering)
Merit in 2012
SME Banking Support Prize of the
17th Best SME Banking Awards
2012 Grand Prize in Microfinance
Commendation of the
Minister of Health and Welfare
Grand Prize of the 1st 2012
Mobile Brand Awards
One of the Top 50 Banks in
Indonesia in 2012
Grand Prize in the Financial Service of
the 2012 Korea Mobile App Award
No.1 Bank among Asset Groups
Korea Smart App Assessment Index
(KSAAI) - Highest Excellence Award
in the Banking App of the Year
(ranking No.1 in the banking sector)
Grand Prize in the comprehensive
sector of 2012 1st Financial
Consumer Protection Awards
2012 Grand Prize of Customer
Delight Award (in the banking
sector for five consecutive years)
’TWO CHAIRS’ - Grand Prize in PB Finance
of 2012 Korea Luxury Brand Award
No.1 in Korean Standard Service
Quality Index(KS-SQI) Banking Sector
for Customer Satisfaction 2012
(for two consecutive years)
029
woori bank 2012 annUaL rEPorT
we will
always be
with you.
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Our top priority at any given moment is on our customers.
Systematic financial products are developed for the stable life-
style of our customers, and continual research for greater cus-
tomer convenience is constantly underway. We plan important
matters in unison with our customers, help them overcome
challenges, and feel a great joy in their achievements. In short,
it is the benefits and happiness of our customers that we cher-
ish and take pride in.
031031
woori bank 2012 annUaL rEPorT
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DreamDreamDreamDreamDreamDreamDreamDreamDreamDreamDream B
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“ We foster customers’
dreams and hopes.”
Woori Bank’s ‘Aga(Baby) Sarang(Love) Project’ is an installment saving/deposit
product for infants and babies (our future potential customers) that helps
them prepare for their happy future. Many more products and services are be-
ing developed to foster the hopes and dreams of our individual customers.
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woori bank 2012 annUaL rEPorT
Consumer Banking
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The Consumer banking business Unit is woori bank’s
highest-level department in Consumer banking that
offers financial products and services to retail cus-
tomers.
it is in charge of conducting overall business strate-
gies for retail customers, finding new markets, man-
aging the Consumer banking business Unit and set-
ting business channel strategies. we run a separate
Division within the Consumer banking business Unit
for wealth management and housing finance that
require more specialized services.
as of 2012-end, we offer our top-notch products
and services to about 18 million customers in 993
branches. The Consumer banking business Unit
strives to offer as many products and services pos-
sible to our current and future customers by con-
tinuously tapping into new markets and engaging in
CrM(Customer relationship Management) activities.
and contributed to promoting the culture of giving by
launching the ‘Woori Sarang(Love) Nanumi(Sharing)
Bankbook’, a bankbook to manage donations. More-
over, we opened 51 branches to enhance customer
convenience, due to the relocation of corporate and ad-
ministrative cities.
aga(baby) Sarang(Love) Project
At a time when competition of marketing for students
as future customers becomes fierce, Woori Bank initiated
the ‘Aga(Baby) Sarang(Love) Project’ to prepare bank-
ing services for the future of infants and babies over
the long run. This was done in conjunction with public
agencies in Korea that are initiating projects to enhance
the birth rate. The project is to provide vouchers at
the national level by producing and selling the ‘Woori
Aga(Baby) Sarang(Love) Thomas Package‘, an installment
saving/deposit to prepare for student loans and funds
to purchase homes. Woori Bank has 180,000 infants
and babies as new customers as of 2012-end and helps
them embrace a happy future, through the ‘Aga(Baby)
Sarang(Love) Project‘ that kicked off in August 2012.
Establishing a Channel for Foreigners Living in korea
The number of foreigners living in Korea has increased by
100,000 people per year, attributing to a greater spotlight
on this niche market. Thus, Woori Bank signed an agree-
ment with the Immigration Office under the Ministry of
Justice for vicarious fee collection and financial services.
The Immigration Office is the first location foreigners visit
in hopes of finding work in Korea. Woori Bank has pro-
vided financial services, such as account-opening in Korea
and overseas remittance since November 2012 and serve
as a customer contact point for foreign workers. We also
developed an ATM for receipt which is capable of reading
passports, thus enabling the efficient receipt of fees for
institutions. It is developing as a model to raise the ben-
efits for public agencies, customers and the Bank, whose
coverage is expected to expand nationwide.
Creating a Culture of Sharing – woori Sarang(Love)
nanumi(Sharing) bankbook
Even under the prolonged economic downturn, Woori
Bank stood at the forefront of expanding the culture of
sharing along with its customers and raising its transpar-
ency. For religious organizations and retail customers,
revieW of 2012
In 2012, the Consumer Banking Business Unit focused
on providing the best service to as many customers as
possible. As a consequence, about 1.01 million addi-
tional new customers have recently joined Woori Bank.
Under the ‘Aga(Baby) Sarang(Love) Project’, we ended
up expanding potential customers from students to in-
fants and babies, while raising conveniences for foreign
customers living in Korea by setting up a new banking
process in conjunction with the Ministry of Justice. We
also took the lead in playing the social role of finance
034
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we launched the ‘Woori Sarang(Love) Nanumi(Sharing)
Bankbook’, a product that enables customers to donate
whole or part of financial transactions for installment
saving or deposit to charity organizations. The product
began selling in March 2012, and as of 2012-end, 2,639
religious organizations and 57,000 retail customers used
the bankbook. These numbers are expected to rise as
the culture of giving spreads even more.
opening 51 branches
With a 114 year corporate history, Woori Bank has
operated channels to maintain customer loyalty com-
paratively better than our competitors. Nevertheless,
we made a bold step in opening even more branches to
minimize customer inconvenience. This was especially
relevant with the transfer of the administrative capital in
2012, which led to a mass influx of customers in public
agencies to local regions and the opening of industrial
complexes there. We opened 51 branches in regions
with high customer demands, especially in Sejong City,
major new cities and industrial complexes.
planS for 2013
In 2013, the Consumer Banking Business Unit will ap-
proach customers with financial services befitting the
new trend in an aging society with low growth. Of par-
ticular note, we plan to increase channels and services
as contact points with Woori Bank’s potential customers,
that is, infants/babies, and high school students. Mean-
while, we will strengthen products and services for non-
profit organizations such as schools and hospitals, as
well as those for foreigners and the workforce in com-
panies and institutions. Moreover, under the elongated
economic downturn and launch of the new government,
corporate roles and social responsibilities are in the spot-
light now more than ever. We will lead the endeavors in
extending financial services and in playing social roles for
retired customers amid an aging population, while open-
ing branches and windows exclusively for microcredit
services.
key productS
woori aga(baby) Sarang(Love) Thomas Package
(August 14, 2012~)
• A product for installment saving or deposit for sub-
scription to support the Planned Population Federation
of Korea under the Ministry of Health and Welfare
• Providing a KRW 10,000 voucher for customers sub-
scribing to installment savings/deposit in the name of
infants or babies under the age of five
woori Sarang(Love) nanumi(Sharing) bankbook
(installment Saving/Deposit)
(March 19, 2012~)
• A bankbook that automatically donates to the pre-
designated charity organization upon engaging in
financial transactions of installment saving or deposit
• Donating whole or part of the amount of the beneficial
interest rates (or at maturity) to charity organizations
woori worker Money Management bankbook
(September 21, 2012~)
• An optional product for customers with payroll trans-
fers, reflecting their needs for interest rates and fees
• There are beneficial interest rate type (offering beneficial
interest rates), and beneficial fee type (exempting the
fee for cash withdrawals from other banks’ CD/ATMs)
nationwide branch networks-end 2012
(993 Branches)
Seoul
(467)
Kangwon
(12)
Inchon
(40)
Gyeonggi
(223)
Chungbuk
(15)
Chungnam
(27)
Daejeon
(25)
Gyeongbuk
(24)
Daegu
(28)
Ulsan
(9)
Busan
(57)
Gyeongnam
(26)
Jeonbuk
(12)
Gwangju
(14)
Jeonnam
(11)
Jeju
(3)
035
woori bank 2012 annUaL rEPorT
Housing Finance
-
woori bank’s Housing Finance Division is in charge
of services related to housing finance and the na-
tional Housing Fund.
For systematic and specific management of real
estate-related financial issues, woori bank operates
the Housing Finance Division within the Consumer
banking business Unit. we also manage the nation-
al Housing Fund of the Ministry of Land, infrastruc-
ture and Transport as a treasury bank.
we try and cater to various customer needs by
providing products of our bank account, and also
products of national Housing Fund available for
our low-income consumers.
re-elected as a Treasury bank of the national Housing
Fund
The National Housing Fund project is important in broad-
ening the options of products for consumers (including
the socially vulnerable), of housing finance. Woori Bank
has taken the lead in seamlessly procuring and execut-
ing funds as a treasury bank of the National Housing
Fund. As of 2012-end, Woori Bank had a market share
of 49.3% in loans for subscribers and 40.7% in savings
for housing subscriptions. Throughout 2012, 1.32 million
new customers braced themselves for a dream to own
a house with savings for housing subscriptions. After a
fierce competition, Woori Bank was consequently re-
elected as a treasury bank to manage funds worth KRW
89 trillion. Beginning in 2013, we laid the foundation for
more customers to encounter the products of the Na-
tional Housing Fund for the next five years.
Stably managing housing finance-related assets
At a time when the negative real estate market has been
elongated and the housing-related assets of customers
and the Bank are under threat, we are fundamentally
driven to preemptively better manage the current uncer-
tain situation. We strove to enhance the fundamentals
of loan assets, while reducing risks, by actively inducing
non-deferred installment loan repayments, instead of de-
ferring balloon repayments in a lump sum. In 2012, the
amount of guarantee-secured mortgage loans increased
by KRW 5.3 trillion compared to 2011. In so doing, we
managed housing finance assets in consideration of
soundness and profitability even under the economic
downturn.
Leading the Domestic Housing Finance Market
The Housing Finance Division spearheaded its efforts
to develop products and reform the system in order to
make preemptive responses to changes in the financial
revieW of 2012
In 2012, the Housing Finance Division provided the high-
est volume of National Housing Funds in Korea. Excellence
in the business, not only in 2012, but also for the past
five years, has put us in the spotlight to be re-elected as a
treasury bank for the National Housing Fund. This would
enhance our capability in providing a greater diversity of
housing finance products to our customers. We also made
preemptive responses to the financial environment even
in the elongated real estate economic downturn leading
the efforts to generate the demand for housing finance in
Korea with new products and services.
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market in 2012. We are actively engaged in supporting
the soft landing of household debts and the house-poor,
which are spotlighted as social issues. This is done for
the first time in the Korean financial sector, by conduct-
ing a rental scheme following trust services. In order to
make preemptive responses to the financial environment
where the demand for small houses is rising amid in-
creases in one to two strong households, we contributed
to facilitating the supply of city-type residential housing,
by proposing various deregulatory measures to the Min-
istry of Land, Infrastructure and Transport.
a package with other products such as credit card, de-
posit, and foreign exchange to maximize synergies and
create a new business model.
Housing Maintenance Loan of korea Housing Guaran
tee(kHG)
We provide a housing finance related to re-development,
re-construction, moving expenses, operating expenses,
and down payment ensuring 100% repayment security
guaranteed by KHG based on a reciprocal priority agree-
ment with our bank valid for two years.
planS for 2013
2013 is expected to witness a sluggish real estate mar-
ket and low interest rates trend in the financial market.
Thus, competitions over interest rates among banks in
the housing finance market will become fiercer, while
the profitability of banks in the housing finance asset
sector weakens. Despite such challenges in the financial
environment, we will make qualitative improvements in
the assets on end, while leading housing finance with a
variety of product portfolios.
The Housing Finance Division will continue to domi-
nate the market share by ranking the 1st in the National
Housing Fund. We will strive to attract new loans for
subscribers and savings for housing subscriptions, includ-
ing rental deposit loans and first-buyer housing loans.
Moreover, we will actively support housing welfare proj-
ects for citizens and make continuous efforts to facilitate
national housing in a righteous leading way through
our seasoned experience in financing/operating funds
and computer systems. We will also jump on the band-
wagon of the government’s housing finance measures,
while actively plan to extend funds to those who want
to purchase their own houses by securing optimal profit-
ability and a lowest-risk asset structure. This will enable
our division to expand mortgage loans to KRW 3.5 tril-
lion, which will play a robust role in attracting Consumer
Banking assets in times of economic downturn.
key productS
Smart Jingumdari(stepping stone) Loan for down
payment online
We are the first financial institution to enhance custom-
ers’ convenience by introducing a loan product for down
payment available on the internet. This product is sold as
national Housing Fund-end 2012
(ranking no.1 among domestic banks)
49.3%
Demand-side Housing Subscription Loans M/S-end 2012
40.7%
Housing Subscription Savings M/S-end 2012
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LeadLeadLeadLeadLeadLeadLeadLeadLeadLeadLeadLeadLeadLead B
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“ Woori Bank is a
pioneer in providing
innovative smart
financial services.”
Under our slogan “The Bank for Customer Convenience”, we have
strengthened Internet Banking and Smart Banking services to enable
fast and convenient financial transactions anytime anywhere, and pro-
vide financial services befitting the changing environment. Woori Bank’s
Smart Branch is a new type of space where customers can independent-
ly handle their banking services and experience various types of content.
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woori bank 2012 annUaL rEPorT
U-Banking
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The U-banking business Unit is the highest-level divi-
sion of future banking services at woori bank and
it enables access to financial services for customers
anytime, anywhere, through various media in the
ubiquitous era.
The unit is in charge of woori bank’s Smart banking,
Ubiquitous banking & e-banking strategy setup, as
well as the exploration of new markets. Particularly
notable is the operation of the Smart banking De-
partment that began in 2012 in order to preemp-
tively respond to the Smart banking market that has
grown exponentially.
as of 2012-end, 11.37 million customers have sub-
scribed to and utilized internet banking & Smart
banking services. along with 7,000 aTMs that en-
able the convenient subscription and usage of woori
bank products for retail and corporate customers,
we created ‘woori bank in My Hands’ by securing
state-of-the-art technologies utilized in the smart
phone and the internet.
revieW of 2012
In 2012, the U-Banking Business Unit led the market by
promptly providing services that utilized rapidly chang-
ing advanced technologies. For the first time in Korea,
we kicked off Internet loan services for real estate and
implemented payment services using smart devices.
Moreover, the opening of smart branches paved the way
for us to expand our contact points with young custom-
ers who are familiar with new technologies. We beefed
up the existing product line-ups by launching new prod-
040
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ucts that cater to customer demand in the corporate e-
banking sector, where Woori Bank dominates the No.1
market share.
Leading the Smart banking Market
At a time when 4G mobile communications services
have proliferated and the number of smart phone users
has exceeded 30 million, customers expect faster and
more convenient services. In 2012, Woori Bank improved
the existing real estate-related process, which had for-
merly been handled only in branches offline, and initi-
ated the loan services related to real estate via Internet
Banking, for the first time in the financial sector. We also
launched ‘Danggeun(of course) Easy Banking’, which en-
ables prompt financial transactions in the form of a pat-
tern. As such, we have steadily developed systems that
are convenient for customers. Furthermore, Woori Bank
has provided the ‘Woori M-POS(Mobile Point of Sales)
Service’ since November 2012. This service dramatically
lowered entry fees by leveraging smart devices, which
were rarely used due to their high prices, for mobile
payment services. As a result, Woori Bank’s U-Banking
Business Unit currently is ranked the 1st in Smart Banking
subscription rates (surpassed 4 million in total, 25%) vis-
à-vis its total number of customers, in addition to being
awarded as No.1 in Korea Smart App Evaluation Index
(measuring customer’s needs of easiness and conve-
nience) for three times, thus leading the Smart Banking
market into full swing.
opening Smart branches
Woori Bank strives to expand contact points with po-
tential workers who are newly graduated (and who may
be future customers), by securing transactions with the
highest number of universities in Korea. Considering
the tendencies of the newer generations, who are inter-
ested in current devices and promptly adapt themselves
to new environments, we opened smart branches in
September 2012. There, customers can directly handle
banking tasks via their smart device. Customers can uti-
lize the banking services while experiencing various types
of content at smart branches that cater to their specific
needs, including the brand ‘Woori for the Twenties’, the
information of bus arrival times, the promotion of stu-
dent clubs and photo printing services. These customer
oriented services are available on a pilot basis at the Ko-
rea University Branch and at the Ewha Womans Univer-
sity Branch, before being expanded to a greater scale.
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Providing Customized Corporate e-banking Services
Woori Bank provides market-leading services in the
e-Banking sector, befitting the title of a leader in Cor-
porate Banking. In 2012, we focused on providing
customized services. Besides ‘WIN-CMS’(Woori Internet
Cash Management Services) and ‘Woori ERP(Enterprise
Resource Planning)’ that are the existing services for
corporate customers, we began ‘Woori Moa(collecting)
Dream’, a service specializing in fund collection service
from April 2012. We also launched ‘Woori Win Square’,
a multi-purpose service for the self-employed, providing
them essential services and information, through vari-
ous applications co-produced by Woori Bank and related
companies. We steadily maintained our edge in the cor-
porate e-Banking market by continuing to develop new
services, thus maintaining the No.1 market share for the
number of corporate fund management customers.
planS for 2013
In 2013, the U-Banking Business Unit aims to provide
No.1 banking services, in terms of customer satisfaction,
by further developing services that can be used via all
devices and in all sorts of environments. We will strive to
block risks for customers by developing a greater amount
of accident prevention services for phishing prevention
and GPS services for smart phones, etc., while realigning
Internet Banking systems in the ever-changing financial
environment. We will provide services that satisfy our
entire customer base, by adopting sign language-based
counseling services for the socially-vulnerable, as we fully
leverage the available ITC(Independent Television Com-
Total number of customers subscribed to
Smart banking-end 2012
(Unit: million)
4.47
25%
1.87
11%
:Smart Banking Subscription Rate
(ranking No.1 among domestic banks)
2011
2012
mission). Moreover, in order to explore new markets, we
will continue to explore a new business model based on
convergence with heterogeneous industries.
key productS & ServiceS
woori Moa(collecting) Dream
(April 30, 2012~)
‘Woori Moa(collecting) Dream’ is a payment-exclusive
service using a virtual account, which is appropriate for
kindergartens, nurseries, academic institutes and shop-
ping arcades, where payment transactions are frequent.
Danggeun(of course) Easy banking
- Quick banking Service
(June 15, 2012~)
‘Danggeun(of course) Easy Banking’ is a fast and con-
venient service exclusively for inquiries and transfers.
To use the service, frequently used transfer data is pre-
registered, and a pattern-based transfer function is
offered, whereby a pattern is used and brought in for
easy transfers. Since its launch in June, 380,000 custom-
ers have been using the service as of December 2012.
Photo-shooting and image-editing functions are also
available on the main screen so that users can configure
their screen according to their preferences.
woori win Square Service
(July 2, 2012~)
‘Woori Win Square’ is a comprehensive service for the
self-employed, providing services essential for and infor-
mation beneficial to the self-employed in succeeding via
an app that is co-created by Woori Bank and specialists
in different fields.
woori M-PoS(Mobile Point of Sales) Service
- Mobile Payment System
(November 15, 2012~)
‘Woori M-POS Service’ is a service connected with Mo-
bile Point of Sales(M-POS), and is a new concept that
uses the smart phone or tablet PC to provide the credit
card payment and sales information of affiliated stores.
As a mobile card payment device is attached to smart
devices (such as the smart phone), it offers high mobility
and convenience.
041
woori bank 2012 annUaL rEPorT
Card Business
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The Card business Unit is the highest-level division
that offers card-related services for retail/corporate
customers of woori bank. woori Card, a previous
independent subsidiary, merged with woori bank
in March 2004, to become the Card business Unit
of woori bank. The unit is engaged in card-related
business strategies, the service affiliation & man-
agement of card receivables and membership.
as of 2012-end, the unit accounted for 7.26% of the
market share, in terms of credit card sales. Strong
performance is shown in product development as in
woori V Card series, a steady seller in the credit card
sector and in profitable project-seeking, in align-
ment with companies and public agencies.
revieW of 2012
In 2012, the Card Business Unit focused on attracting
new customers. Alignment with public agencies was
advantageous in that services could be provided to a
specific customer group, for which we could improve
our efforts to increase our competitive edge. Moreover,
we are expanding customer targets by tapping onto new
markets, such as the market for medical/pharmaceutical
payments. In 2012, we launched a new card system to
raise the satisfaction of our existing Woori Card custom-
ers, while attracting new customers as well.
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Expanding Services aligned with Public agencies
Amid a fierce environment to attract new customers in
the domestic credit card market, the Card Business Unit
has steadily increased its number of customers with its
services that are aligned with public agencies. Woori
Bank is engaged in the ‘Woori Ahi(children) Sarang(love)
Card’ program with the Ministry of Health and Welfare
to support nursery fees for infants and babies, and the
card to purchase oil for cargo vehicles (a project of the
Ministry of Land, Transport and Maritime Affairs), sup-
ports oil subsidies for the vehicles.
Through the ‘Woori Ahi(children) Sarang(love) Card’ pro-
gram that we began engaging in from the second half
of 2011, we achieved 330,000 new accounts and a sales
volume of KRW 1.4 trillion throughout 2012. From the
oil-purchasing card for cargo vehicles (which we took
part in from November 2009), we posted a market share
of 24.7%, up 3.6% from the previous year, as of 2012-
end.
Strengthening the Services for new Markets
We strengthened services for new markets by preemp-
tively adapting ourselves to the changes in the financial
market amid institutional amendments. The Card Busi-
ness Unit launched a credit card exclusively for medical
payments in July 2011, focusing on our capacity in the
market that year. As a consequence, we attracted Ko-
rea’s large-scale hospitals, including St. Mary’s Hospital
(KRW 350 billion a year) and Yonsei Medical Center
(KRW 300 billion a year), while passionately continuing
to expand the transaction network and search for new
clients.
raising Satisfaction of the Existing Customers
In 2012, the Card Business Unit focused on strengthened
services for our existing customers, while also attracting
new customers. With the adoption of a new card sys-
tem, which is an upgraded version of the existing one,
more thorough customer analysis can be achieved.
As a result of intensive marketing on automatic transfers
of communications fees and attracting payment ac-
counts that catered to customer needs, we ended up se-
curing 710,000 subscribers for automatic transfers, and
customers came to enjoy a greater scope of Woori card
services. As of 2012-end, the usage rate of private credit
cards posted 61.1%, up 8.3% from 2011-end.
planS for 2013
Major Highlights of Card business-end 2012
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Total Sales Volume
(Unit: KRW trillion)
43.1
39.4
Total number of Paid Subscribers
(Unit: million)
2011
2012
5.64
5.28
2011
2012
In 2013, the Card Business Unit plans to focus on ex-
panding customer targets. We will further strengthen
check card services for various targets: the governmental
voucher program that is to be newly adopted; middle
& high school and university students as the future cus-
tomer base; and foreign customers whose numbers are
significantly rising. Moreover, a variety of efforts will be
extended to establish a smart infrastructure: facilitating
smart phone-exclusive products and integrated mar-
keting for the website, improving ATMs and the SNS;
complementing transportation functions; and scaling up
infrastructure, which will start at schools and nearby af-
filiated stores where mobile infrastructure can flourish.
key productS & ServiceS
woori ahi(children) Sarang(love) Card
It is a card to extend the governmental subsidies in pay-
ing for nursery or kindergarten fees, in conjunction with
the government’s childcare fee support. It is a standard
discount card and encompasses the benefits to be found
at gas stations and restaurants.
Money-saving in Gas Stations woori V Card
It is a card specialized for usage in gas stations, offering
discounts of up to KRW 150 per liter in pumped gas.
This card was designed to be especially appropriate in
times when the price of oil is high.
Pop woori V Check Card
It is a card that offers discounts in various locations such
as: GS25, T Money charging points, restaurants, coffee
shops and gas stations. It is Woori Bank’s iconic check
card that came after the Woori V Check Card.
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InsightInsightInsightInsightInsightInsightInsightInsightInsightInsightInsightInsight B
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“ Woori Bank looks
into the future.”
As a leading global bank, Woori Bank expands its global financial services (not
only for Korean corporate customers in foreign countries), but also for the
local customers in those countries. Our global competitiveness was beefed
up as we completed the setup of sales networks in BRICs and the South-
eastern Belt. With our 60 global networks in 16 countries, we will empower
Korean and local companies to advance to new markets worldwide.
045
woori bank 2012 annUaL rEPorT
Global Business
-
The Global business Unit is the highest-level division
in charge of initiating overseas business strategies
and supporting overseas branches.
woori bank has continued to expand the targeted
services to include local retail/corporate customers,
centering on subsidiaries in the U.S. and China, and
thereby transcending the limitations of providing
services to korean corporate clients who made in-
roads into overseas markets.
as of 2012-end, woori bank held a total of 60 net-
works in 16 countries where it performed well, with
total assets worth USD 11.1 billion, loans worth USD
5.2 billion and an operating income of USD 268 mil-
lion.
revieW of 2012
In 2012, Woori Bank launched a total of 7 networks,
centering on emerging regions to secure new growth
engines. In particular, we established a branch network
to provide services to all BRICs, for the first time, as a do-
mestic bank by launching a subsidiary in Brazil and open-
ing a representative office in Myanmar. Moreover, the
Global Business Unit has put more efforts to supply more
stable and diverse foreign currency funds. We focused
on diversifying lenders of foreign currencies by strength-
ening the marketing for and the relationships with over-
seas financial institutions, as well as soundly managing
funds in foreign currencies at home and abroad.
Strengthening overseas networks
Starting with the launching of the Chengdu Branch un-
der Woori Bank China in January 2012, we opened the
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Chennai Branch of India, Sabah CSC(Customer Service
Center) of Bangladesh and the Chittagong Representa-
tive Office. In September 2012, we established Woori
Bank Brazil as a subsidiary in Brazil, kicking off opera-
tions in full swing. With the launching of Woori Bank
Brazil, we ended up with sales networks in all BRICs, for
the first time as a Korean bank. In October 2012, we
were the first Korean bank to open Yangon Representa-
tive Office in Myanmar, which enabled us to establish
a business foundation in the Southeastern Asian Belt,
stretching around India, Bangladesh, Myanmar, Viet-
nam, Indonesia and Malaysia. Woori Bank’s 60 global
networks in 16 countries serve as the springboard for
customers to make inroads into overseas markets.
bolstering relationships with overseas Financial institu-
tions
As the elongation of the global economic downturn con-
tinued, the Global Business Unit focused on bolstering
closer relationships with overseas financial institutions,
which serve as major financing sources. We expanded
global business opportunities through cooperative al-
liances with prestigious overseas financial institutions.
Particularly notable was our creation of new business
opportunities through various specific efforts: expanding
trade transactions by opening accounts in RMB of China
(along with major Chinese banks, including Bank of Chi-
na); extending mutual financial support to our customers
and counterparties; and signing cooperation agreements
on cooperative development in the card business. The
unit played a pivotal role as a window in extending
Woori Bank’s advanced Consumer Banking and IT Bank-
ing services to overseas financial institutions.
planS for 2013
We plan to launch new overseas networks in 2013 to
bolster our global competitiveness. In particular, our
edge in Consumer/Corporate Banking services within
Southeastern Asia (a high-growth region) will be beefed
up by additionally launching branches there. New finan-
cial services will be offered to more customers through
various cooperative human/physical exchanges among
countries and banks. These will be driven by stronger al-
liances with overseas institutions, where Woori Bank has
yet to make inroads. Stable liquidity management and
stronger internal controls will be established, thus mini-
mizing the side effects resulting from the expansion of
global networks.
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worldwide branch network
(60 Networks in 16 Countries)
LA
New York
Woori
America
Bank
Head office
overseas branch (13) & Sub-branch (2)
overseas representative office (3)
overseas Subsidiary (6)
Zao
Woori
Bank
Russia
London
Woori
Bank
China
Gaeseong
Seoul
Dubai
Bahrain
Shanghai
Dhaka(3)
Hanoi
Chennai
Yangon
Hong Kong
Ho Chi Minh
Kuala Lumpur
Singapore
Woori
Global
Markets
Asia Ltd.
HK
Tokyo
Woori
Bank Brasil
(Brazil)
P.T Bank
Woori
Indonesia
* Number of Branches(42) under Overseas Subsidiary(6) : Woori Bank America(17), Woori Bank China(15), P.T Bank Woori Indonesia(6),
Zao Woori Bank Russia(2), Woori Bank Brasil(1) and Woori Global Markets Asia Ltd HK(1)
** The first local bank to establish overseas corporation in China (November 2007), and Russia (January 2008)
Major Highlights of Global business-end 2012
net income
(Unit: USD million)
122
(ranking No.1 among domestic banks)
nPL ratio
(Unit: %)
0.76
Delinquency rate
(Unit: %)
0.54
Liquidity ratio
(Unit: %)
114.3
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woori bank 2012 annUaL rEPorT
International trade
Business
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The international Trade business Division is the
highest-level division in charge of foreign ex-
change and trade related services for both retail/
corporate customers in korea and foreigners. The
unit is engaged in setting and supporting woori
bank’s FX and trade related marketing strategies
and operates the international Trade Service Cen-
ter, a bPr(business Process reengineering)-specific
department to help customers accomplish bank-
ing tasks promptly and efficiently. Moreover, the
FDi(Foreign Direct investment) Center, within the
international Trade business Division, is up and run-
ning. being aware of the growing needs this cen-
ter specializes in providing consulting services of
foreign investments to our customers due to their
increases at home and abroad.
in 2012, in the world’s eighth economy of korea,
we generated USD 294.4 billion in export/import
volume and USD 90.1 billion in FX/remittance trans-
fers. we provide insights on export/import volume
and investments at home and abroad, based on our
Corporate banking expertise that we have accumu-
lated over the past 114 years, and transact with the
highest number of affiliates of large enterprises.
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revieW of 2012
The International Trade Business Division generated ex-
port/import volume of USD 38.5 billion, up from 2011
by fostering FX/int’l trade specialists, and strengthening
the quality of FX/int’l trade services, thus intensifying
the competitiveness of export/import banking services.
We operate a money exchange center in major locations
throughout Seoul, and opened FX Remittance Centers
for foreign workers. As such, we expanded channels
specialized in foreign currencies to cater to the customer
demand for FX. Moreover, we launched FX deposit prod-
ucts in 2012 to minimize FX rate-fluctuation risks for
customers. Moreover, we stood at the forefront of dis-
seminating KRW clearing systems, so as to ensure that
KRW becomes a global currency.
bolstering Competitiveness in Export/import banking
Services
Leveraging our strength from being Korea’s No.1 bank
in Corporate Banking, we achieved export/import vol-
ume records of USD 294.4 billion in 2012, taking up the
market share of 29.5% among Korea’s top five banks.
This was a direct result of our seasoned expertise in cor-
porate financing and in the development of a specialized
workforce for the past 114 years. We are beefing up our
competitiveness of export/import banking services, not
only for Korea’s top 5,000 larger enterprises in export/
import, but also for SMEs.
Expanding Specialized Channels for FX
In 2012, the International Trade Business Division fo-
Total Export/import Volume-end 2012
(Unit: USD billion)
294.4
255.9
2011
2012
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cused on intensifying FX transaction contact points to
cater to customer demand and raise conveniences as-
sociated with branches, such as extending the opening
hours. In highly populated areas around Seoul such as
Seoul Station, Korea City Air Terminal and Myeongdong
round-the-clock money exchange centers were installed.
This responded to the needs for money exchange among
domestic and international tourists. Moreover, FX services
are even available on the weekends in areas with a high
population of foreigners. This enhances the convenience
of their transactions in such locations as Hyehwa-dong,
Gwanghi-dong and Uijeongbu. WongokDong even has
a FX Remittance Center open to provide specialized ser-
vices for foreign workers.
planS for 2013
In 2013, we will endeavor to expand the FX customer
base and explore new markets with potential in sustain-
able growth. Just as we did in 2012, we will continue to
provide customer-specific distinctive services in export/
import banking services, while expanding our market
share. We will further bolster our services and channels
to satisfy foreign demand for FX/remittances. Moreover,
we plan to expand the scope of our FX services by tap-
ping into new markets, as we focus on medical tourism
for foreigners and FDI.
key productS & ServiceS
krw Clearing Service
Developing FX-related products and Enabling krw
to Lead international Transactions
The KRW Clearing Service, among countries, is up and
running for trade settlement services in KRW.
With a greater spotlight on FX risks resulting from the
increasing range of economic, domestic and interna-
tional fluctuations, Woori Bank launched the ‘FX Rate
Care Deposit to Accumulate Foreign Currencies’, with
which a certain amount of money in a foreign currency
can be purchased/reserved automatically according to
FX rates. Moreover, the KRW Clearing Service is up and
running among countries for trade settlement transac-
tions in KRW. Due to the expansion of trade with China,
we launched international off-bound settlement services
for foreign currencies in KRW and Chinese Yuan, thus
spearheading the efforts to make KRW a global currency.
As of 2012-end, Woori Bank held the highest number of
depositary accounts among overseas financial institutions
in KRW, while it led to facilitate international transactions
of KRW that befit the trade volume of Korea.
Woori Bank is a leading bank in KRW international trans-
actions, holding the highest number of depositary ac-
counts of overseas financial institutions in KRW.
FX rate Care Deposit to accumulate Foreign Curren-
cies’
A deposit product with flexible installments where pur-
chasing and accumulation is possible by automatically
adjusting the amount in a foreign currency to be trans-
ferred according to fluctuations in FX rates
woori onE overseas remittance Service
A one-stop service where money is automatically with-
drawn from an ordinary demand deposit in KRW and
remitted overseas
FX-end 2012
(Unit: USD billion)
2.9
remittance(inward/ outward) Transfers-end 2012
(Unit: USD billion)
87.2
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woori bank 2012 annUaL rEPorT
Financial Market
Business
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The Financial Market business Unit overseas the
bank’s treasury, FX, derivatives, and securities in-
vestments in krw and foreign currencies.
The unit is comprised of four departments, Treasury
that manages the bank-wide liquidity, Trading that
deals foreign currencies and derivatives, Securities
Trading that trades bonds and equities, and Settle-
ment Support that performs back office and settle-
ment roles. Trading Department is a solid market
leader among korean banks with its active deriva-
tives transactions in interest rates, currencies, equi-
ties and commodities.
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revieW of 2012
As the bank’s controller in funding and investment, the
Financial Market Business Unit has focused on making
adequate preemptive actions to market uncertainties in
2012 by diversifying funding currencies and increasing
committed line. Through these measures, we are well
above the required liquidity standard set by the regula-
tory agency. We also strengthened our competitiveness
in FX and derivatives trading through diversification of
trading products and increased activities, including run-
ning of 24 hour night desk on commodity derivatives.
Preemptive Financing
In 2012, the Financial Market Business Unit successfully
issued unsubordinated bonds worth KRW 3.4 trillion and
subordinated bonds worth KRW 1.3 trillion, contribut-
ing to the stable BIS ratio through preemptive financing.
Amid the continuum of the financial crisis in the Euro
zone and uncertainties in global liquidity in particular,
Woori Bank strengthened its stability in foreign currency
borrowing by funding in varieties of currencies and mar-
kets to new investors. Our foreign currency bond issuing
activities include 20 billion Samurai Bond, 285 million
Malaysian Ringgit Bond, and 5 billion Thai Baht Bond.
This enabled us to decrease dependency on USD funding,
strengthen liquidity risks, and surpass the minimum regu-
latory standards on liquidity. As of 2012-end, KRW and FC
liquidity ratios stand at 134% and 111% respectively.
Strengthening Competitiveness in FX Trading and
Derivatives
In 2012, the Financial Market Business Unit strove to
strengthen its competitiveness against market volatility.
In FX Trading, Woori Bank has developed a fully diversi-
fied portfolio of foreign currency derivatives, including
the Mexican Peso (MXN), South African Rand (ZAR), Pol-
ish Zloty (PLN), Russian Ruble (RUB) and Chinese Yuan
(CNY), aside from other major currencies like the USD,
JPY and EUR. As such, we made a proactive response to
market volatility and diversified profit sources.
Moreover, we strengthened derivative trading by lever-
aging arbitrage trading through the preemptive opera-
tion of positions. This was achieved by predicting market
variables, such as domestic & international policies, and
fluctuations in demand and supply.
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Providing 24 hours Customer Services for Commodity
Derivatives
The Night Desk for commodity derivatives is up and
running. We provide products to hedge risks 24 hours
for customers exposed to the price fluctuations of raw
materials. Also, by opening our London Desk when our
Korean foreign exchange desk closes, we offer services
to cover overnight exchange rate risks.
planS for 2013
In 2013, the Financial Market Business Unit will focus on
higher efficiency in its funding and investment activities.
We will maintain square positions for funds in KRW by
adjusting deposits and optimizing the loan-deposit ratio.
We will also diversify short-term investments instruments
to manage surplus liquidity. We will maintain stable for-
eign currency liquidity through the optimal ALM(Asset
Liability Management). The volume of funding and in-
vestment by maturity will be optimized, and consistent
monitoring will take place to maintain the sound liquid-
ity ratios and be prepared for uncertain market condi-
tions and changing regulatory environment.
In trading, we plan to continue to build the integrated
trading systems at the Financial Market Business Unit
in 2013. Through the system, one-stop services will be
offered, where front-middle-back offices are aligned to
enable high-level internal controls, as well as prompt
product development.
Liquidity ratios
krw Liquidity ratio (%)
FC Liquidity ratio (%)
155
145
135
125
115
105
95
146.7
140.5
129.5
109.9
126.7
121.6
105.1
105.2
110.5
109.3
Dec-10
Jun-11
Dec-11
Jun-12
Dec-12
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woori bank 2012 annUaL rEPorT
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ProtectionProtectionProtectionProtectionProtectionProtectionProtectionProtectionProtectionProtectionProtectionProtectionProtectionProtectionProtectionProtection B
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“ A reliable financial
partner that
empowers
customers in
challenging times!”
Under the belief in field-oriented management that places top priority on
our customers, we believe that “We can find answers from customers,
and solutions can be found on-site.” Accordingly, we provide solutions
to struggling companies on-site, which can enable their development
and success. We support the mutual growth of large enterprises and
SMEs, and provide customized services specializing in SMEs, lowering
interest rates and providing consulting services befitting each enterprise.
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woori bank 2012 annUaL rEPorT
Corporate Banking
-
The Corporate banking business Unit is in charge of
services for corporate customers, including a group
of korea’s top large enterprises (such as: Samsung,
LG and PoSCo).
The unit caters to the diverse financial needs of cor-
porate customers in a timely manner by managing
the branch heads of each company as Corporate
banking specialists who enabled woori bank to be
no.1 in korean Corporate banking and by operat-
ing the ib business Unit to cover project financing.
as of 2012-end, we provided exceptional services
to the largest groups of large enterprises in korea.
The Corporate banking business Unit feels confi-
dent to have provided the best financial services
to our corporate customers so that they were able
to become global players for the past 114 years.
Greater efforts have been made to extend more of
our expertise to a larger number of customers.
revieW of 2012
In 2012, the Corporate Banking Business Unit strove to
satisfy the financial needs of large enterprise customers.
Currently, various financial needs are explored and the
relationships with the largest corporate customers are
strengthened through the Woori Diamond Club, a meet-
ing of the heads of the country’s largest multinationals.
New product development continued apace for compa-
nies to enjoy shared growth, and a culture of coopera-
tion has been spread as corporate social responsibilities
and roles gain a greater spotlight.
As of 2012-end, the unit posted total assets of KRW
24.3 trillion, a net income of KRW 68.8 billion and an
export/import volume of USD 253.4 billion.
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Continuously Strengthening relationships
As corporate customers grow into global players, their
financial needs have promptly and diversely changed.
The Woori Diamond Club, a meeting of the heads of
the country’s largest multinationals, has been up and
running since 2003. The club’s 10th anniversary marks a
time to strengthen our relationships with our corporate
customers, and provide services to respond to changes in
the environment by identifying the financial needs of our
customers in a timely manner.
Extending Support for Large Enterprises/SMEs
At a time when CSR(Corporate Social Responsibility) is
emphasized, Woori Bank signed cooperation agreements
with large enterprise customers, and developed product
packages to extend funds to SMEs with low interest
rates. Through the Partnership Loan for Large Enterprises
and Partnership Guarantee Loan for Large Enterprises
launched in August 2008, funds worth KRW 517.7 bil-
lion have been extended to 587 companies in total, as of
2012-end. Serving the largest number of large enterprise
customers in Korea, we utilize a broad customer network
and contribute to the shared growth of large enterprises
and SMEs.
Developing Products to improve Financial Soundness
With the adoption of the IFRS, companies are required
to record bills bought in foreign currencies as debts,
implying that exporters with a large volume of such
bills would be subject to poorer financial soundness. As
such, we developed a customized product for exporting
customers by buying out export account receivables D/
A(Document against Acceptance) for high-yield large
enterprises and overseas subsidiaries in main debtor
groups on a Non-Recourse Condition (before acceptance
of the shipping document and fix maturity date by the
importer). With this in place, corporate customers can
avoid recording the liability for bills bought account (re-
sulting from the adoption of the IFRS), and improve their
financial soundness.
planS for 2013
In 2013, the Corporate Banking Business Unit will focus
on facilitating transactions with not only corporate cus-
tomers, but also with their executives, by leveraging cor-
porate customer networks. We plan to continue opera-
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tions aligned with the Consumer Banking Business Unit.
As corporate customers are expected to struggle from
the sluggish economic recovery, we will concentrate on
their preemptive risk management.
We have always contributed to market stabilization,
while adopting field-oriented and customer-centric man-
agement by fostering and managing a highly competent
workforce in Corporate Banking. Along with our stron-
ger roles, differentiated loan products, in particular, will
be created for the cooperation between large enterprises
and SMEs, along with consistent support for our partner
SMEs. We will create a new paradigm for Corporate
Banking by exploring high-yield partner companies in
2013.
key productS & ServiceS
b2b Loan / b2b Plus Loan
These are corporate loan products that can be provided
in installment loans, with accounts receivable being used
as collateral, without the need for additional collateral
or the guarantee of a partner company. Such loans are
designed to facilitate a company’s e-settlements.
Partnership Loan for Large Enterprises / Partnership
Guarantee Loan for Large Enterprises / Settlement
Fund Loan for Partner Companies
These are corporate loan products offered at a low in-
terest rates under a business agreement between the
Bank and a large company, to encourage cooperation
between large enterprises and SMEs.
D/a Factoring for Foreign Currencies
With the adoption of IFRS, there is a stronger need for
the improvement of corporate financial soundness. This
leads to a higher demand for factoring.
The D/A is a product for exporting customers by buy-
ing out export account receivables for D/A(Document
against Acceptance) for high-yield large enterprises and
overseas subsidiaries in main debtor groups on a Non-
Recourse Condition (before acceptance of the shipping
document and fix maturity date by the importer). With
this in place, exporters can avoid recording the debts for
bills bought account (that resulted from the adoption of
the IFRS), and improve their financial soundness.
Total assets of Corporate banking-end 2012
24.3krw trillion
woori bank is the major creditor bank of 11 large enterprises
(Total number of large enterprises under major creditor bank
management: 30)
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woori bank 2012 annUaL rEPorT
sMe Banking
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The SME banking business Unit is in charge of
financial services for corporate customers, espe-
cially SME customers. The work scope of this unit
includes the supervision of SME business strategies,
the exploration of new markets and the manage-
ment of business departments. we also operate the
SME rM(relationship Manager) system, a channel
of SME banking pool specialists, in order to foster
SME banking experts and provide the best finan-
cial services for our aptness in Corporate banking.
along with the Corporate banking business Unit
that is equipped with numerous, large-enterprise
customer channels, the SME banking business Unit
strives to support financially struggling SMEs in
various ways amid the unstable economic environ-
ment, both domestically and abroad.
There were approximately 820,000 SME customers
as of 2012-end, whose total assets under manage-
ment amounted to krw 56.5 trillion.
distinctive customer-specific products, including custom-
ers such as franchise business operators and tenant com-
panies in industrial complexes.
As a result, the number of new SME customers stood at
55,000 and assets increased by KRW 776 billion in 2012.
Focusing on Policy Financing and Public agency-
related Markets
In 2012, the SME Banking Business Unit placed priority
on markets for policy financing and public agencies. In-
tensive marketing was established, along with strength-
ened competitiveness in interest rates, to facilitate the
sales of indirect loans(on-lending), whose sales were
sluggish until 2011. As a result, their sales volume in-
creased by 1,104%, and we newly launched on-lending
for foreign currencies in 2012. Moreover, we strove to
increase the volume of letter of guarantee issuances
for SMEs through special contributions. We did this by
signing cooperative agreements with public agencies,
such as the Korea Credit Guarantee Fund and the Korea
Technology Credit Guarantee Fund, so as to strengthen
financial support for SMEs.
initiating Distinctive Customer-specific Services
In February 2012, the SME Banking Business Unit
launched the ‘Woori Franchise Loan’ for franchise busi-
ness operators with marketing that specialized in SOHO
customers. In September 2012, we launched the ‘Woori
Industrial Complex Loan’, a specialized product created
to strengthen our competitiveness in targeting SME-
clustered areas. And we also expanded the number of
Block Marketing Branches (BMB) by 19 (from 75 to 94),
which led the efforts in offering differentiated services.
As a result of focusing on the cross-enterprise settlement
market, we were able to maintain No.1 in market shares
(following 2011), in the Account Receivable Collateral
Loan, which accounts for the largest portion in settle-
ment loans.
intensifying SME Consulting and Preferential Services
Woori Bank’s corporate consulting services has the lon-
gest history in the domestic banking sector. In 2012, we
launched the ‘Green Consulting Service’, a specialized
service for companies involved in the green business, by
bolstering the green industry-related consulting func-
tions. We extended a total of 74 consulting services (in-
revieW of 2012
In 2012, the SME Banking Business Unit focused on
policy financing and public agency-related markets. Par-
ticularly notable was the fact that the scale of on-lending
products rose 1,104% year-on-year, which was driven by
a strong edge in interest rates. We signed agreements
to intensify SME Banking support with public agencies
(including the Korea Credit Guarantee Fund), and stood
at the front line to increase letter of guarantee issuances
for SME customers. We led the market by developing
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057
cluding 16 green-related services) in 2012. ‘Woori Best
Members’ was launched as an upgraded version of the
existing preferential system for SME customers, which
offers services with five different themes in order to bet-
ter satisfy our customers according to their preferences.
planS for 2013
In 2013, the SME Banking Business Unit will do its
utmost for field-oriented operations that are closely
aligned with customers. We plan to adopt ‘proposal-
based operations’ through utilizing customized propos-
als, and initiate ‘road marketing’, where the CEO of
Woori Bank personally visits high-yield customers. The
‘Customer Churning Signal System, used to identify cus-
tomers whom are expected to churn, and the ‘Customer
Retention Program’, will be launched in order to consis-
tently manage our existing customers.
Moreover, we plan to introduce promising SMEs to gov-
ernmental investment projects perhaps related to local
governmental institutions, while fulfilling our social re-
sponsibilities by providing specialized consulting services
to social enterprises certified by the governments.
key productS & ServiceS
woori industrial Complex Loan
A product specialized for companies in industrial com-
plexes to intensively target SME-clustered areas
A product that provides preferential services to phase
by phase financial support, when lotting-out building
of subscriptions, by giving preferential terms of interest
rates, loan ceilings and costs.
This amount reached KRW 240.4 billion since its launch
on September 10, 2012 (as of the 2012-end balance)
woori best Members - Preferential System for Presti-
gious SME Customers
A system offering preferential benefits befitting corpo-
rate features, through the remodeling of the existing
partner company scheme. We provide services to 409
companies as of 2012-end, after careful selection ac-
cording to five themes. We offer various benefits, such
as free ERP services, benefits in fees, consulting services,
congratulatory services on anniversaries, small-group
gatherings, etc.
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woori Franchise Loan
A product specialized for SOHO customers that operate
franchise businesses An integrated packaged product
providing preferential terms of interest rates, loan ceilings,
credit/deposits, and cards etc.
Sales of KRW 3.4 billion since its launch on February 24,
2012 (as of the 2012-end balance)
Total number of SME customers-end 2012
816,119
760,710
Total assets of SME banking-end 2012
(Unit: billion)
2011
2012
56,451
55,675
2011
2012
057
attracting Treasuries for new Local Governments
Managing treasuries on behalf of local governments
requires extensive experience. Possessing the expertise
to soundly manage the Seoul Metropolitan Government
treasury for over 100 years generated much recognition.
Thus, it came as no surprise when Woori Bank was des-
ignated as a treasury bank for Sejong Special City, where
the construction of an administrative capital is currently
underway, or when Woori attracted deposits amounting
to KRW 51.8 billion in nine special accounts. We were
also able to impress the provincial treasury of South
Chungcheong Province and 13 other funds with deposit
increases of KRW 200 billion and loans worth KRW 650
billion. In 2012, we paved the way to strengthen our
edge in services for the Chungcheong region by attract-
ing the provincial treasury in South Chungcheong Prov-
ince, and in Sejong City.
attracting recipient agencies of the Government’s
r&D Funds and new Public agencies
The Institutional Banking Business Unit serves as a win-
dow of financing for Woori Bank. The unit provides the
best-of-its-kind financial services to major institutions
where there is governmental financial administration,
so that institutions can more efficiently manage and
administer funds. In 2012, Woori Bank strengthened its
services for recipient agencies of the government’s R&D
funds. With the completion of R&D WIN-CMS+(Woori
Internet Cash Management System), an R&D fund man-
agement system, transparent and efficient fund manage-
ment has become available. As a result, 32 companies
joined Woori Bank as new institutional customers, and
we ended up securing KRW 424.7 billion in R&D funds.
Woori Bank was designated as a primary bank for new
public agencies—including the Institute for Basic Sci-
ence, the Korea Medical Dispute Mediation & Arbitration
Agency and the Korea Institute of Drug Safety & Risk
Management.
woori bank 2012 annUaL rEPorT
Institutional Banking
-
The institutional banking business Unit is in charge
of financial services for the central government, lo-
cal governments and public agencies.
The unit encompasses business operations and
strategies for institutional customers, equipping
them with the Public Fund Sales Department, to
systematically manage the municipal and provin-
cial treasuries of local governments. Moreover, the
institutional banking business Unit provides top-
notch financial services to institutional customers
by being the only unit in the banking sector to uti-
lize specialists in institutional operations.
as of 2012, our institutional customers included the
Seoul Metropolitan Government and its 25 district
offices, the korea rail Corporation and the korea
Student aid Foundation. The presence of such cus-
tomers proves to endorse our position as korea’s
largest primary bank for public agencies.
revieW of 2012
In 2012, the Institutional Banking Business Unit success-
fully won the bid contributing to Woori bank’s success in
becoming the treasury bank for Sejong City, a new mul-
tifunctional administrative city, as well as one for South
Chungcheong Province, by striving to attract treasuries
of local governments. We fulfilled our role as a channel
for financing, by actively attracting recipient institutions
of the government’s R&D funds and new public agen-
cies. Moreover, we strove to explore new projects and
facilitate related business operations by attracting gov-
ernment-initiated projects. As of 2012-end, the Institu-
tional Banking Business Unit operated deposits totaling
KRW 19.6 trillion and loans worth KRW 70 million, while
managing the number of new institutional customers
(101 customers) in 2012.
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Woori Bank’s systems can easily be connected to both
the Internet and to mobile devices. This allows the real-
time and uniform management of all accounts for funds
administered, thus enabling excellent mobility and work
efficiency.
Total Deposits of institutional banking-end 2012
19.6
krw trillion
Major institutional Customers of institutional
banking
• Local Government
• Public agency
Exploring new Projects by attracting Government
-Led Projects
As the numbers of new public agency and local govern-
ment-led projects increased, the role of the Institutional
Banking Business Unit gained greater importance. The
focus is on providing financial services by exploring new
markets, e.g. business alignment in government-led
projects that extend beyond our role of financing, by
acquiring institutional funds. In 2012, we attracted the
Next-Generation e-Voucher Program of the Ministry of
Health and Welfare, and transactions of service provid-
ers thereof. Moreover, we secured the transactions of
childcare instructors, as well as settlement accounts for
the Childcare Service Center, under a childcare service
project.
planS for 2013
In 2013, the Institutional Banking Business Unit will
focus on expanding its customer base through the ex-
ploration of new markets. Our market share will increase
in the military sector as we continue to explore new
institutional customers and enhance our competitive-
ness. Transactions will scale up with sub-agencies of the
Seoul Metropolitan Government, as we tap into projects
jointly. In 2013, our goal is to increase low-cost deposits
and income by attracting recipient institutions of govern-
mental R&D funds.
The year 2013 is a critical period for securing our cus-
tomer basis such as signing a renewal contract with the
treasury of district offices for the Seoul Metropolitan
Government, whose maturity comes in 2014. We will
continue to provide financial services, not only to institu-
tions, but also to local residents by strengthening our co-
operation with the Seoul Metropolitan Government and
its sub-agencies, and by also tapping into new aligned
projects.
key productS & ServiceS
integrated r&D Fund Management System (r&D
win-CMS+:woori internet Cash Management Sys-
tem)
It is a management system of the government’s R&D
projects and funds, whereby the management process of
R&D funds are established as an advanced fund manage-
ment system to present transparency in administration,
convenience in usage and efficiency in management.
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woori bank 2012 annUaL rEPorT
Investment Banking
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in 2002, the ib Division was launched in order to
open a new chapter in the history of investment
banking. Until it was reshuffled into the ib busi-
ness (under the Corporate banking business Unit in
2012), it played a pioneering role that led the flow
of the domestic ib market. The ib Division provides
a variety of ib services including syndicated loans
(M&a, SoC, etc.), security investments (collective
investment securities, equity-linked securities, etc.),
and the granting of credit.
with the longest history in Corporate banking
among domestic banks, woori bank leverages
strong ties with corporate customers, offering them
customized financial structures that cater to the
needs of the project funds they pursue. Moreover,
we initiate the efforts for globalization by tapping
into the overseas ib market. we did so by launch-
ing the woori Global Markets asia Ltd. in october
2006, which specialized in the Hong kong ib, for
the first time as a domestic bank.
revieW of 2012
As the financial crisis in the Euro zone continues to ag-
gravate in the aftermath of the 2011 fiscal environment,
the global economic situation worsened and risks in the
construction and shipbuilding sectors within the domes-
tic economy, remained rampant. As such, the IB Division
selectively initiated business operations in consideration
of stability and profitability. First of all, efforts were
implemented to bolster ties with financial institutions,
governmental agencies and companies that were related
to the IB business. Strong performance was achieved
in M&A acquisition finance, power generation/energy
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and SOC, etc. The proactive management of low-profit
assets and potentially insolvent assets enabled the rebal-
ancing of asset portfolios, and raised asset soundness.
The profitability of the assets held, rose, by increasing
the volume of loans in KRW, especially in cases of high-
profit projects.
The IB Division holds assets of KRW 12.5 trillion (includ-
ing off-balance sheet items) as of 2012-end, consisting
of loans of KRW 6 trillion, securities of KRW 2 trillion
and off-balance sheet items of KRW 4.3 trillion. Recently,
invested high yield loans and securities have been recov-
ered, which enabled us to receive sizeable amounts of
dividends and profits on sale.
planS for 2013
In 2013, uncertainties in the international financial
market due to the side effects from the European finan-
cial crisis will lead to conservative business operations.
Because of such structural setbacks in the domestic
economy, the domestic IB market is expected to witness
sluggish growth, with rare signs of improvement, in the
economic and financial environment. Therefore, several
trends are projected to be dominant: public corporations
will be privatized by the government; assets will be sold
off under the goal of corporate restructuring to liquidate
non-core projects; and M&A acquisition financing of
companies will flourish among companies seeking to tap
into new projects to diversify portfolios and pursue mid-
to long-term growth. SOC projects to secure social infra-
structure facilities, as well as power generation/energy
projects, to improve the governmental-driven power
demand/supply are expected to emerge in the market.
In 2013, the IB Division plans to continuously expand
financial arrangements for infrastructure finance such as
power generation/energy and M&A acquisition finance
as well as traditional business sectors, including loans for
facility funds for high-yield corporate customers to se-
cure high-yield assets. Moreover, we will endeavor to in-
crease our fee income by participating in the BTO (Built-
Transfer-Operate) market, as well as alternative energy
projects such as offshore wind farms, to make inroads
into new IB markets.
The IB Division will grow into Korea’s iconic IB player that
implements the Commercial and Investment Bank(CIB)
model, an alternative to the U.S. version of ‘Investment
Banking’ through a positively balanced localized combi-
nation of Corporate and Investment Banking.
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investment banking organization
investment Banking division
ib Strategy
Corporate Finance
investment banking Dept.
Shipping & aviation
M&a
Principal investment
real Estate PF
abS
SoC
Power & Energy
Project Finance Dept.
woori Global Markets asia Ltd. Hk
Total assets of investment banking
1.6%
others
off-balance Sheet items
34.4%
2.3%
others
off-balance Sheet items
36.8%
Total assets
-end 2012
12.5
krw trillion (100%)
Total assets
-end 2011
13.3
krw trillion (100%)
48%
Loans
Securities
16.0%
45.9%
Loans
Securities
15.0%
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woori bank 2012 annUaL rEPorT
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ComfortComfortComfortComfortComfortComfortComfortComfortComfortComfortComfortComfortComfortComfortComfortComfortComfortComfort B
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“ We will guide
customers for
their comfortable
elderly life.”
Woori Bank provides customized retirement pension products catering
to the investment attributes of our customers. By extending optimal
product portfolios through the advice of seasoned investment analysts
& processes management, and offering total financial services, we
provide distinctive customized retirement pension services. As such,
we will help customers prepare for stability in their golden years.
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woori bank 2012 annUaL rEPorT
Pension &
trust Business
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The Pension & Trust business Division oversees
woori bank’s trust and pension services. as the re-
tirement pension market has been expanding, the
Pension & Trust business Division was launched in
2009 to support the efficient management of the
retirement life of our retail customers. From the
initial stage of adopting the retirement pension
system, distinctive customized services have been
provided through comprehensive retirement pen-
sion consulting. we lead the retirement pension
market through multifaceted efforts: providing
optimal products suitable for our customers’ in-
vestment tendencies; having seasoned investment
specialists available; extending customized optimal
products through specific processes; and provid-
ing total financial services. as of 2012, the amount
of retirement pension assets stood at krw 6.03
trillion, while 23,000 companies and 948,000 em-
ployees enjoyed woori bank’s retirement pension
services.
revieW of 2012
In order to guarantee a stable retirement life for the
workforce and prepare for shifting trends in the labor
market (such as a rapid aging population), we conducted
customer-oriented business with a long-term perspec-
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tive. We launched the ‘Happy Life Lifetime Bankbook’ for
the retirement pension of subscribers. The product en-
ables subscribers to conveniently access their retirement
annuities as they accumulate their pensions, allowing
them to check their bankbook to see how their funds
are managed. We developed and manage a ‘Maturity
Designated Time Deposit’, which enables customers to
designate their individualized maturity, depending on
their financial schedule. The ‘System for Installment Buy-
ing of Fund’, is also up and running, whereby retirement
benefits that are paid in a lump sum upon retirement
pension subscriptions, are divided into installments to be
invested in funds.
Our retirement pension systems were upgraded to reflect
the major amendments in the Employee Retirement In-
come Security Act. We also ensure that all product sales
are appropriate, by providing updates and notifications
to subscribers through the Bank’s ‘Happy Call System’.
Moreover, differentiated services are offered as we ex-
tend training through the additional development of the
‘Retirement Pension Training Management System’.
In 2012, the amount of retirement pension assets stood
at KRW 6.03 trillion, up KRW 1.70 trillion from the previ-
ous year. The number of retirement pension subscribed
companies increased by 5,381, that is, 30.3% to 23,135
as of December-end, 2012. The number of subscribed
employees increased by 278,734, that is, 41.6%, to
948,221 year-on-year.
planS for 2013
Having recognized retirement pensions as core growth
industries of the future, we are engaged in active mar-
keting. We do so by responding to market changes to
secure a stable customer base and long-term profitability
so we can dominate the retirement pension market early
on. In 2013, the Pension & Trust Business Division plans
to expand its status in the retirement pension market
by establishing a foundation for sustainable growth and
strengthening its business competency for continuous
growth. To this end, we plan to intensify distinctive, cus-
tomer group-specific marketing and ex-post management
thereof, expanding our competitiveness in asset manage-
ment services, and efficiently supporting business opera-
tions for asset management. We will lay the foundation
for sustainable growth and lead the retirement pension
market that will be driven by an abundant specialized
workforce, supportive training systems, various custom-
ized products and up-to-date management expertise.
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key productS & ServiceS
Happy Life irP(individual retirement Pension) Time
Deposit
It is a time deposit product providing fixed interest rates
to depositors of Individual Retirement Pensions (IRP).
Upon making a special termination for pension pay-
ments, the agreed interest rate at the time of subscrip-
tion/re-deposit is offered to ease customer burden result-
ing from termination before maturity. It is a five year-
maturity product exclusive for pension payments, and
can be re-deposited when customers choose to do so.
Major Highlights of Pensions & Trust business-end 2012
6.03
krw trillion
23,135
customers
948,221
customers
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▲39.3%
Retirement Pension Assets
▲30.3%
Companies subscribed to Retirement Pension
▲41.6%
Employees subscribed to Retirement Pension
woori bank 2012 annUaL rEPorT
Wealth
Management(WM)
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The wM Division, under the Consumer banking
business Unit, is in charge of managing & encom-
passing Private banking(Pb) services and targeting
High net wealth (Hnw) customers. The wM Divi-
sion consists of the wM Strategy Department pro-
viding strategies for Private banking services as well
as supporting business operations thereof, and the
affiliation Product Department managing woori
bank’s funds and bancassurance.
as of 2012, a total of 351 private bankers pre-
sented korea’s top-notch services in comprehensive
asset management and consulting services under
an independent Private banking(Pb) brand of ‘Two
Chairs’ to 130,000 Hnw customers.
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revieW of 2012
In 2012, the Wealth Management(WM) Division global-
ized Private Banking(PB) services through Woori Bank’s
overseas networks, and further strengthening the func-
tions of advisory centers, which are Korea’s most pres-
tigious consulting service center. We launched the ‘100
Years of Age Research Team’ as we brace for the effects
of an aging population, and focused on developing
exclusive product packages and fostering related spe-
cialists. As a result, we won the ‘Korea Premium Brand
Award’ and the ‘Asia PB Award’ for three consecutive
years. Despite the challenging financial environment
both domestically and abroad (including the continuum
of low interest rates and the Europe-originated financial
crisis in 2012), our annual average growth rate has been
maintained at approximately 8.5% since 2008, generat-
ing about 10,000 HNW customers.
Globalizing Private banking(Pb) Services
As of 2012, we provided customized Private Banking(PB)
services, catering to customer needs in approximately
340 PB branches as well as 6 PB centers. We conducted
asset management consulting services and real estate
seminars for potential local customers leveraging over-
seas networks. We will strive to globalize PB services as
we continue to expand overseas networks.
intensifying Service Competitiveness in advisory Cen-
ters
Our Private Banking advisory centers, with more than 20
specialists in taxation, real estate, overseas study, migra-
tion and investment, are located in every major Korean
city. Consulting services regarding donation/inheritance,
succession of family businesses and taxation are avail-
able, along with total services for real estate invest-
ments, market outlooks, overseas investments and study
abroad programs. Woori Bank’s advisory centers are now
established as Korea’s No.1 financial consulting service.
Launching ‘100 Years of age research Team’ bracing
For the aging Trend
We launched the ‘100 Years of Age Research Team‘ in
June 2012 as we brace for the shift of an aging popula-
tion. The team conducts R&D on processes and products
to preemptively prepare for the financial demands of the
elderly population, which are likely to increase in scale.
In 2012, we completed the development of a product
package exclusively for retirees to prepare them for a
stable post-retirement life. ‘100 Years of Age Elderly
Partners’, experts catering to comprehensive post-retire-
ment life style, are available to provide due services.
Fostering Specialized Private bankers Continuously
We also operate the PB Academy, with the industry’s
best curriculum for fostering competitive private bank-
ers from 2010. The Academy has had several graduates
over the past five years. These specialists are trained not
only on the financial knowledge required to serve as
professional private bankers, but also in the fundamental
mindset required in providing services suitable for HNW
customers. As of 2012-end, the Academy has generated
155 graduates, further enabling us to provide top-notch,
on-site comprehensive asset management services.
planS for 2013
In 2013, we plan to solidify distinctive specialized servic-
es and comprehensive asset management services for PB
customers. By providing a platform for comprehensive
asset management through the Wealth Management
(WM) Team, such services covering those for individuals,
families and corporate management services for CEOs
will be up and running. ‘Woori PB Specialized Real Es-
tate Service‘, an unprecedented banking service where
the management of architecture processes and fund
management services are combined, will maximize the
convenience in real estate management for HNW cus-
tomers. In order to secure a competitive edge through
top-notch, comprehensive asset management services,
the PB Academy will be expanded into the ‘Asset Man-
agement Specialist Course‘ so that specialists with in-
depth knowledge and a proper mindset/character can
further develop their expertise in wealth management.
key ServiceS
Providing professional consulting services with top-
notch expertise
•11 tax specialists, 4 real estate specialists, 1 overseas
study/migration specialist
•5 wealth management specialists
•Analysts and product analysis specialists
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Total number of wM customers-end 2012
130,000 customers
▲10,000
customers
increase of new wM customers year-on-year
Total Financial Deposits of wM banking-end 2012
krw 40 trillion
▲2.7
trillion
increase of Financial Deposits year-on-year
woori bank 2012 annUaL rEPorT
Fulfilling
genuine roles in
finance
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Woori Bank supports SMEs to fulfill their roles in finance for
economic recovery, practices ‘genuine finance’ to take closer
steps to the public, conducts community-focused social con-
tribution activities to reach out to the socially vulnerable &
neglected, and practices a sharing spirit through voluntary
work. We will serve as a bank that fosters dreams and hopes
for our customers, while striving to assist the turnaround of
the national economy. We will become a trusted, beloved,
kind-hearted bank that shoulders greater social responsibility
and leads the efforts in creating a better world.
As we believe that a happy work life for our staff is a prereq-
uisite to offer the best services and satisfaction to our cus-
tomers, we do our utmost to achieve staff satisfaction and
labor-management harmony.
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woori bank 2012 annUaL rEPorT
Consumer Protection
-Cham(responsible) Keumyung(finance)
We have always endeavored to become ‘the best asset for
our customers’. At a time when the market is rapidly chang-
ing and the work scope of a bank diversifies, the impor-
tance of protecting customer rights has become increasingly
important. As such, we launched the Consumer Protection
Center for the first time in the banking industry in Novem-
ber 2010, which was headed by the Deputy President, an
independent division in charge of consumer complaints. A
total of 34 seasoned employees with over ten years of expe-
rience are at the forefront of protecting consumers, moni-
toring our systems on the invasion of customer rights and
benefits and planning services for financial conveniences.
Woori Bank enables management principles that put the
priority on its people: ‘A Bank pursuing exceptional Cus-
tomer Conveniences and Field Management by placing “our
Customers” as No.1 Priority’. Through various efforts, we
focus all our competencies on the management of our busi-
ness fields, namely our customer contact points, and con-
sumer rights protection. Specifically, a task force team was
formed for innovative field-oriented management to pursue
the top priority of our marketing strategy which is ‘satisfying
our customers to the fullest’. Field-oriented sales supporting
systems were therefore put in place. Other efforts for field-
oriented management include ‘CEO Field Focus’, where our
CEO meets the staff in branches on a monthly basis. To cur-
rent date, our CEO, has visited over 250 number of fields/
customers to actively listen to our customers voice since his
appointment as CEO.
Through the ‘Autonomous Management of Consumer
Satisfaction Program’ that is based on Consumer Centered
Management(CCM), we operate and manage systematic
and prompt processes for preemptive and ex-post consumer
protection. By operating the Customer Mania(CM) group
that is consisted of branch heads, customer happiness man-
agers and CS leaders in fields (all of which are at the fore-
front of customer contact points), we systematically carried
out consumer protection activities. As a result, we seek to
maximize the competency of consumer protection in the or-
ganization, through systematized cooperation between the
HQ and our branches.
declaration of ‘cham(responsible) keumyung(finance)‘
In 2012, we proposed the new paradigm of ‘Cham(responsible)
Keumyung(finance)’ and upgraded the consumer protection
culture by sharing the paradigm within the organization.
The idea is to fulfill our CSR for the socially vulnerable and
neglected, and improve irrational work practices (from the
customer’s perspective), in order to become a feasibly condu-
cive bank for sufficiently fulfilling customer satisfaction, and
positioning ourselves in the forefront of creating a consumer
protection culture.
‘Ten Critical Tasks for Cham(responsible) Keumyung(finance)’,
includes the launching of the ’Hope Dream Installment
Deposit’ with an interest rate of 7.5% for the socially vul-
nerable (including basic livelihood support recipients and
multicultural families), and reducing the Keun-Mortgage col-
lateral establishing rate that was announced last August. As
these were novel ideas, the tasks caused a stir in the bank-
ing sector. These paved the way to herald the commitment
and passion of Woori Bank to practice ‘Cham(responsible)
Keumyung(finance)’.
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the grand prize of the 2012
customer delight award for
five consecutive years
•
the grand prize of the 1st
financial consumer protection
award
As the CEO’s philosophy in consumer protection is rooted
as a critical axis in corporate culture, Woori Bank has been
highly recognized in the objective assessment of various
agencies at home and abroad. We won the Korea Customer
Satisfaction Management Award for five consecutive years
and were inducted into the Customer Service Hall of Fame
(KMAC: Korea Management Association Consulting). Woori
Financial Group(WFG) was designated as the world’s 72nd
group and Korea’s No.1 financial group in 2011 (The Banker
Magazine of Financial Times). Woori Bank was awarded
the No.1 Korean Bank, Bank of the Year for five years from
2004 to 2011 (The Banker Magazine of Financial Times),
we also won the Grand Prize of the 2012 Customer Delight
Award for five consecutive years (Korea Economic Daily),
and the Grand Prize of the 1st Financial Consumer Protection
Award.
plans for 2013
In 2013, we will resolve customer complaints accord-
ing to their perspective and strive to place our top pri-
ority on customers by practicing ‘Cham(responsible)
Keumyung(finance)’.
Only when financial institutions do their utmost in CSR
and financial consumer protection, can we be welcomed
into the market. In this sense, we will soundly imple-
ment the new management paradigm ‘Cham(responsible)
Keumyung(finance)’ in our organization, thus playing a piv-
otal role as a leading bank in financial consumer protection.
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Financial Consumer Protection woori bank 2012 annUaL rEPorT
social Contribution
Activities
Woori Bank has always walked hand-in-hand with
the growth of the nation, society and its customers
for 114 years. Even in the midst of war and economic
crisis, Woori Bank has practiced the spirit of sharing.
Particularly notable is its social roles and responsibili-
ties in finance that emphasize humanity, happiness and
hopefulness, which are the three major missions under
the vision of ‘Sharing Love, Having a Dream, and Raising
Hope and Growing Love’. The practices we conduct are
not stand-alone incidents, and they are performed in
conjunction with the entire staff at Woori Bank, as well
as their families.
Hosting the Sports Festival and Marathon for the
Disabled
In order to facilitate the disabled to exercise more in
their daily life and create a location where the disabled
and the able-bodied can jointly play recreational sports
together, we hold annual rope jumping events. The staff
at Woori Bank (including the CEO and the disabled),
form a team for such sports events. Their success as a
team has broken down walls and forged social integra-
tion. Building on these successes, we will continue to
hold the 5th Sports Festival and Marathon for the Dis-
abled in 2013.
introduction of Woori Bank’s major Social contribu-
tion activities
woori Happiness Society Program
Our ‘Woori Happiness Society Program’ sponsors the
socially vulnerable in the community. This volunteer
program is closely aligned with the community on a
regular basis, forging sisterhood relationships with social
welfare organizations and local childcare centers near
our HQ and branches nationwide. In August 2012, we
invited 300 children from local childcare centers to join a
two-day summer camp that conducted a bubble show,
a K-Pop dance lesson, a treasure hunt games and also
endowed scholarships. In October 2012, we purchased
agricultural product that was harvested through an
autumn volunteering harvest under the ‘One Company
One Village’ campaign, and distributed the product to
94 sisterhood childcare centers in partnership nation-
wide.
Conducting ‘one Company, one Village’ Sponsor-
ship Program
Our ‘One Company, One Village’ sponsorship pro-
gram encourages the active exchange and shared
growth between urban and rural regions. The program
marked its 8th anniversary in April 2013 by support-
ing Yubyeolnan(Unusual/Peculiar) Village in Anseong
City, in Korea’s Gyeonggi Province. We offer support
in the way of volunteering during harvests, creating
markets for the direct sale of agricultural products,
rural village experiences for our staff and customers,
village refurbishment and income-generating activi-
ties in rural villages. We also forged the ‘One Company
One Fishing Village’ program with Mongsan-ri in South
Chungcheong Province, and the ‘One Company One
Mountain’ program with Namsan Mountain in Seoul for
environmental preservation and natural protection. To
pay tribute to our heritage, we have signed a contract
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to protect Hongyuneung under our ‘One Company One
Cultural Property’ program. Hongyuneung is a Historic
Site No.207 and a UNESCO-designated World Cultural
Heritage site. It is the tomb of Korea’s Emperor Gojong,
and also of King Sunjong, who paved the way for Dae-
han Cheonil Bank, the forerunner of Woori Bank, to be
established, sponsoring it with imperial funds so that
a national bank could take root. We regularly conduct
activities to protect Hongyuneung, and include a tribute
ceremony as part of our new recruiting orientation, so
as to enhance their appreciation of our company history.
During every opening ceremony, the CEO and the man-
agement take part in a commitment event to practice
‘Cham(responsible) Keumyung(finance)’ by paying trib-
ute to the deceased there.
woori art Contest
In 2012, the Woori Art Contest celebrated its 18th anni-
versary, as Korea’s top art contest for artistically inclined
children and youth, and a total of 45,000 kindergar-
den, elementary, middle and high school students took
part. We also invited children from the earthquake-hit
Sichuan Province in China to exert their artistic talents.
We are also active in promoting educational and social
programs such as children’s classes in economics and
our basic money management classes for North Korean
defectors. The children’s class of economics includes a
field trip to the Woori Bank Museum and given the op-
portunity to open a new account, so that the children
can enjoy a hands-on, money-based experience.
building Up the ‘woori Sarang(Love) Fund‘ and the
‘woori ahi(Children) Sarang(Love) Fund’
Our staff is the driving force for increasing Woori Bank’s
culture of donation. They voluntarily offer a portion of
their monthly wages to the ‘Woori Sarang(Love) Fund’
and the ‘Woori Ahi(Children) Sarang(Love) Fund’. Since
October 2010, we have been operating the ‘Woori
Sarang(Love) e-Sharing Shelter’, whereby customers can
donate by transferring money via Internet Banking, thus
encouraging a culture of small-scale donations. We op-
erate the ‘Woori Sarang(Love) e-Sharing’, a point-based
donation program that donates some of the points ac-
cumulated when using credit cards.
Sharing love, having a dream, and
raising hope and growing love
Humanity
Happiness
Hopefulness
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Social Contrib ution Activities woori bank 2012 annUaL rEPorT
Woori smile Microcredit
Woori Bank is engaged in Microcredit(Miso-credit) to
spearhead the efforts in practicing socially responsible
banking by supporting the financially struggling and the
socially vulnerable & neglected customers. Woori Bank’s
Miso-credit is a Korean-style Microcredit that helps those
who cannot access institutional financial funds, and also
helps companies in starting up businesses or managing
their funds on a non-collateral/guarantee basis. Woori
Bank led the founding of the Woori Smile Microcredit
Bank with contributions from affiliates of Woori Finan-
cial Group that contributed KRW 10 billion a year for five
years. The purpose of This Bank is to support those with
low incomes and limited credit to be financially self-suf-
ficient, thus enhancing the stability and comfort of their
lives. This Bank has prestigious figures in the religious,
academic and social welfare sectors as outside executive
directors, in order to observe fairness. It has 9 branches
nationwide with 29 employees to enable the active sup-
port of citizens.
major track records of Woori Smile microcredit Bank
By extending support for the financially vulnerable, the
socially neglected and those who lack financial access,
we extended Microcredit worth KRW 412 billion in 2012,
leading the way in practicing socially responsible financ-
ing. Microcredit services were presented with several
products: ‘Woori New Hope Seed’ for low-credit low-
income customers; and ‘Transit Loan’ whereby citizens
performances in 2012 included cases of
1,101
microcredit services in 2012 worth
(krW billion)
15.1
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Single Parent and Multi-cultural Family Support
Fund: A loan for single-parent and heads or spouses of
multi-cultural families that came recommended by a so-
cial welfare center to do business
The goal of Microcredit in 2013 is ‘to practice the genu-
ine roles in Microcredit, giving dreams and hopes to the
public’. We plan to expand support by exploring low-
income industries with high vulnerability and to sign
agreements with traditional market merchant councils
and associations. Meanwhile, we will secure exclusive
channels for better accessibility to Microcredit. Lastly,
we will stand at the forefront to share the genuine role
and directions of Microcredit, cohere with society, and
spread these roles and directions by exploring and pro-
moting the best practices, imbuing confidence among
recipients.
suffering from high-interest rate loans could make the
transition to low-interest loans.
We extended approximately KRW 22.2 billion to 1,413
cases until 2011 through Microcredit services. In 2012,
under our goal of ‘Microcredit to give hopes and
dreams’, we dramatically increased the performance for
Microcredit by developing Microcredit services and cus-
tomized products. Performances in 2012 included 1,101
cases worth KRW 15.1 billion (2,514 cases in total worth
KRW 37.3 billion). We provide support for recipients to
be competent in rehabilitation through our volunteer
work that includes consultation and the extending of
practical on-site support.
key products
business Start-up Loan: A loan for small-scale regis-
tered entrepreneurs to start a new business
working Capital Loan: A loan for individual entrepre-
neurs (who have already been in business for over a year
at an established site) to purchase products, raw materi-
als, etc.
Loan for Unregistered Entrepreneurs: A loan for
small-scale unregistered entrepreneurs to do business
Loan for Traditional Market Merchants for Self-
Sufficiency: A loan for small-scale merchants, such as
the self-employed in traditional flee markets
075
Woori Miso Financial Found ation woori bank 2012 annUaL rEPorT
ethical Management
Due to complications in the financial environment such
as the recent global financial crisis and the expansion of
the scope in banking operations, the likelihood of vari-
ous forms of market and legal risks are on the rise. Ethi-
cal management at Woori Bank serves as the foundation
for sustainable growth despite the challenging environ-
ment. The goal of ethical management seeks to fulfill its
social roles for all stakeholders. This includes customers,
shareholders, our staff, the nation and our society. In
this way, we are contributing to the national economy
and to social development. This is why we established
the ‘Woori Code of Ethics‘, which are the principles
involved in making proper decisions & actions and the
entire staff is required to abide by these principales. We
also established ‘principles-based management, ‘Woori’s
Promises’ and ‘Job-specific Guidelines’, thus growing as
an exemplary ethical player.
acting out the Code of Ethics
Various programs are up and running to raise awareness
regarding the Code of Ethics among our staff and to
ensure we keep our actions in line with our ethics amid
legal and institutional changes. The staff was trained by
producing cyber training programs with the enactment
of the Personal Information Protection Act, thus raising
awareness about the importance of protecting personal
information. By facilitating staff reporting and having
the freedom to blow the whistle regarding ethical man-
agement, we operate the reporting and whistleblower
protection systems necessary to practice ethical manage-
ment and prevent related incidences. The Ethical Man-
agement Support Council is held on a monthly basis,
which led to the exploration of a total of 2,699 excellent
cases of practicing the Code of Ethics in 2012.
key points in ethical management at Woori Bank in
2012
In 2012, we strove for each staff member to perceive
and practice our belief in ethical management. By
strengthening the continuous internal control and staff
training, we implemented practices of ‘ethical manage-
ment’ and made improvements in legal on-site difficul-
ties by operating ‘119 (the Korean version of 911) site-
oriented legal services’. We ensured to further strenthen
ethical management by sharing various practices of ethi-
cal management.
Strengthening the Field Support System
We have extended active support for field management
to shut off possible legal risks. With the 119 (the Korean
version of 911) site-oriented legal services in place, we
provide legal assistance from in-house lawyers to any
staff member requiring legal help in civic, criminal and
household matters. A total of 59 legal complaints were
resolved through legal consultation, accompaniment to
investigative and criminal agencies and advice on litiga-
tions from in-house lawyers. A bulletin board is available
for the staff to propose any ideas on legal advice and
submit requests for improvement. In this way, the sub-
mitted ideas can be reflected in the Bank’s systems. This
enables a strengthened utilization of regulations, while
making them practical and conducive to work.
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number of excellent cases in practicing the code of ethics in 2012
2,699
Providing Various Ethical Management Training
Materials and Conducting related Training
We encouraged our staff to practice autonomous ethical
management through practical training such as the ‘100
Questions and Answers on Ethical Management‘, and
the distributed ‘Ethical Compliance Practices‘ manual. It
is a specific course offered through case analyses. Ad-
hoc training was intensified for the staff members who
required additional support in better understanding
ethical management, including new hires.
Woori Bank’s major plans in ethical management for
2013
In 2013, we will strengthen the ethical awareness of our
staff. For this reason, we designated the first day of each
month as ‘Check & Clean Day‘ (the day of ethical compli-
ance at Woori Bank) to enable our entire staff to perform
a self-assessment covering 20 items. Moreover, field-
oriented legal services will be bolstered. Online support
systems will be made more intensive (such as legal portal
systems and litigation management systems), while spe-
cific and clear compliance and deliberation procedures
will be proposed to the Product Engineering Department,
thus promptly launching products that cater to customer
demand. Lastly, we will lead the way in ethical manage-
ment to support ‘Cham(responsible) Keumyung(finance)’.
In other words, the protection of our financial consumers
will be bolstered when we remove difficult jargon and
unfavorable or irrational terms and conditions for our
customers, in addition to preventing the collection of un-
necessary personal information.
077
woori bank 2012 annUaL rEPorT
Risk Management
As financial techniques have turned more complicated
and the global economic volatility has become more
aggravated for the past decade, risk management has
become the key element in determining a bank’s com-
petitiveness. Woori Bank aims to ‘stably maintain cus-
tomer assets through optimal portfolios’ based on the
accumulated expertise in overcoming the past crises in
risk management. To this end, losses are minimized by
identifying the causes for risks quickly and accurately
through differentiated risk management programs and
by believing that ‘risks could turn into revenues’. As
such, we continue to serve as the most robust and reli-
able No.1 bank.
key points in risk management in 2012
In 2012, we implemented various risk management
strategies to preemptively respond to higher uncertain-
ties in the financial environment (such as the possibility
of a recurring global financial crisis and concerns over
the economic downturn) and to form optimal asset port-
folios that are robust enough in the face of any crisis.
By managing large-amount credit concentrations, and
bolstering contingency plans, we enhanced the portfolio
compositions and competitiveness of the related system
for corporate loans. Moreover, we put in place a mid-to
long-term basis for the Bank by preemptively managing
operational risks, loan-to-deposit ratios, and by estab-
lishing mid-to long-term risk portfolio strategies.
Managing Loans Concentrated in Large amounts
and Strengthening Contingency Plans
Woori Bank is Korea’s top-notch bank in Corporate
Banking. At a time when the financial crisis prolongs,
preemptive risk management in Corporate Banking is
emphasized. Thus, we implemented a standard to man-
age loans concentrated in large amounts for preventing
asset imbalances and raise the asset quality, thus strate-
gically reducing such problematic loans. By establishing
well-managed monitoring systems for asset growth and
volatility increases, monitoring practice have become
more sophisticated, and preemptive management mea-
sures were better implemented, such as putting a halt
on products that were believed to shoulder heavier risks
and recommending down-grades from the standard in
professional service industries.
Not only the Bank-wide contingency plans, but also risk-
specific (credit, market, liquidity etc.) contingency plans,
were put in place separately according to intensifying
attention needed in responses to crises. Particularly
notable was the fact that leading indicators for risks
were developed for the early recognition of crises which
included potentially risky household insolvencies and
the shipbuilding and construction industries, while also
establishing pre-emptive contingency plans, thus timely
response scheme was effectively established.
Management of operating risks and Loan-to-Depos-
it ratio
We implemented an operational risk monitoring system,
whereby items that were conducive to managing daily
operational risks among Key Risk Indicators were se-
lected, and elements of operational risks that occurred
on a certain day were transferred to branch heads and
risk managers in branches via SMS. It proved to be a
practical and preemptive operational risk management
process.
The loan-to-deposit ratio is managed at a favorable
level, according to evaluation standards and compared
to other banks. Bracing for the adoption of the liquidity
management ratios (LCR: Liquidity Coverage Ratio and
NSFR: Net Stable Funding Ratio) and establishing the
system to calculate the liquidity regulation ratio in ac-
cordance with Basel III requirements, we enhanced the
timeliness and accuracy of calculating the risk related
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ratios. We adopted the real-time ceiling and collateral
management system called MUREX Limit Control, to
intensify credit risk management for counterparties in
derivatives trading.
Setting Mid-to Long-term Portfolio optimization
Strategies
We established mid-to long-term portfolio optimiza-
tion strategies to maximize the bank-wide RAROC(Risk
Adjusted Return on Capital), and set mid-to long-term
asset growth targets for each strategy direction unit. We
laid the foundation to maintain stability over the mid-
to long-term, by developing and operating ‘Portfolio
Assessment Analysis’ tools to identify risks, profitability
and concentration in handling loans in the Credit Analy-
sis & Approval Department and branches.
Woori Bank’s major risk management plans for 2013
Economic uncertainties are expected to accrue due to
the economic downturn and concerns over the recur-
rence of a global financial crisis in 2013. We plan to im-
prove corporate credit assessment models to strengthen
economic predictability and better distinguish the credit
ratings of borrowers. We will also focus on rejecting fail-
ing loans by intensifying early warning systems for our
portfolios. Moreover, we plan to enhance the funda-
mentals in risk management in order to initiate integrat-
ed risk management for our overseas networks and thus
be capable of preemptively responding to the expansion
of overseas markets.
establish enterprise risk mgmt. System based on the current risk mgmt. system
profit mgmt.
risk mgmt.
internal control
credit risk
market risk
operational risk
mgmt. accounting
· internal rate
· Cost calculation
credit risk mgmt.
· EL Measurement
· UL Measurement
price risk
· Var analysis
alm System
· Ear / Var repricing Gap
Specific
portion of profit
Profit
RAPM
(RAROC, SVA)
Switch to Car
Capital at risk
[= Economic Equity]
CaR Limit Setting
- Economic Equity based
- Exposure based
Monitoring
internal Control System
· Compliance Dept.
· business Unit
· audit Dept.
* RAPM : Risk Adjusted Performance Measurement * SVA : Shareholder’s Value Added * EL : Expected Loss
* RAROC : Risk Adjusted Return on Capital * VaR : Value at Risk * UL : Unexpected Loss
079
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Risk Management woori bank 2012 annUaL rEPorT
employee satisfaction
We believe that a work life where the staff is happy
and satisfied is the foundation that will provide the top
services to customers. As such, we launched the Staff
Satisfaction Center in 2008, developing and operat-
ing various programs to enhance our staff members’
satisfaction in their work place. Our advanced labor-
management culture is a benchmark model in the bank-
ing sector and throughout the society.
major activities for Woori Bank’s employee Satisfac-
tion and labor-management relations
In 2012, we operated dynamic and interesting programs
for employee satisfaction. By supporting not only work-
shop programs where the staff participated, but also
various pastime activities, we catered to the cultural
needs of our staff and endeavored to assist them in the
formation of networks. In particular, we strive to prac-
tice our belief that the happiness of the families of our
staff is Woori Bank’s competitive edge. Therefore, we
develop numerous fun programs for our staff and their
families to participate in together.
Let’s Go! Empathy Expedition Fun Program for bet-
ter Communication
Let’s Go! Empathy Expedition Fun Program for better
Communication is Woori Bank’s most representative fun
program to make the workplace fun by facilitating com-
munication among its staff through interesting work-
shop experiences, thus generating mutual synergy and
enhancing the level of immersion in work. The program
avoids the clichéd types of workshops oriented towards
mountaineering and eating out. The program rebuilds
staff competency in organization through active out-
door programs including survival games, ATV(All Terrain
Vehical) boarding, rafting, building domino blocks and
horse riding. Since its commencement in March until
November 2012, 2,553 staff members from 166 branch-
es have taken part in the program. The satisfaction from
our staff was significant enough to plan Season II of the
program, which will be ready for 2013.
woori Sarang(Love) in Harmony
Cultural programs are up and running to cater to cultural
interest/demand for art, musicals and classical music, as
a way to help our staff and their families to better enjoy
their leisure time. In 2012, we watched Mamma Mia!,
(a renowned musical) listened to the lecture of art critic
Lee, Ju Heon, and visited the exhibition of Louvre Mu-
seum. Our staff can now enjoy a more vibrant and inter-
esting work life, thanks to the various cultural programs
that enable efficient and satisfying leisure time and
thereby boost their interest in culture and the arts. At
a time when the quality of life is ever more spotlighted,
‘Harmony in Woori Sarang(Love)’ is Woori Bank’s iconic
cultural voucher program that fully reflects this current
trend.
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a Family weekend Journey
As Woori Bank’s iconic family care program, it started
under the belief that staff satisfaction comes from sat-
isfaction in the family. Held on the fourth Saturday of
every month, participants take part in nature-experience
programs to practice their love for their families and
recharge their body and mind. In January 2012, start-
ing from ice fishing and snow sleighing, to cheering
at the games of ‘Hansae Basketball Team’, the female
basketball team of Woori Bank, the program took place
11 times. The participation rate among our staff is very
high as it is the most popular program of interest.
The purpose of the ‘Family Weekend Journey’, starting
from July 2011, is to encourage love within families and
allow a happy time with them, providing opportuni-
ties to staff members to look back on the preciousness
of their families, which can be neglected due to hectic
work schedules.
Establishing an advanced Labor-Management Cul-
ture that Creates Values
We formed and operated a labor-management task
force team to enhance the HR/training systems, as well
as a joint labor-management training, in order to facili-
tate the official communication channel between the
two groups and strengthen professional competencies in
their relations. As a result of encouraging the channels,
we held the ’Woori Family Hanmadang(get together
as ‘One’) Festival’, joint labor-management workshops
and the 2012 Q1 Labor-Management Council meeting.
Fruitful results were borne from the joint program to
strengthen the competency in the labor-management
relations: benchmarking the HR system of overseas
financial institutions for the labor-management; and
conducting ‘Joongang Economy HR Training Institute’, a
master course for the labor union. Moreover, we formed
a joint labor-management task force to improve the HR/
training systems, thus spearheading the efforts to estab-
lish a harmonious culture of the labor-management.
plans for 2013
Believing that staff satisfaction leads to customer satis-
faction, various staff member satisfaction programs and
labor-management harmony models, are sought after.
We will continue to develop programs conducive to form
self-realization, while satisfy the various interests of our
staff who seek a better life. The quality of customer ser-
vice and the value of Woori Bank will drastically improve
whenever our staff is satisfied. In order to satisfy every
staff members’ happiness (which will ultimately lead to
customer happiness), we will stand in the forefront and
ensure the timely realization of our staff’s satisfaction
and the harmonious labor-management.
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Financial review
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88 independent auditor’s report
083
woori bank 2012 annUaL rEPorT
Management’s Discussion And Analysis
FOR THE YEARS ENDED DECEMBER 31, 2012 AND 2011
This Management Discussion and Analysis (MD&A) and accompanying financial statements comply with Korean financial reporting standards (“K-IFRS”,
consolidated financial statements). The term ‘the Bank’, as used in this MD&A, refers to Woori Bank, unless otherwise indicated.
Summary of Management Performance
2012 was a year of tremendous and rapid change in the financial environment. Due to financial issues in the U.S. and Eurozone crisis, global economic
recovery slowed down. The domestic economy entered a low-growth phase: high household debts; price drops in real estate; decreases in domestic
demand and exports; and insolvencies of the self-employed. The Bank’s 2012 net income decreased 30.0% to KRW 1,449 billion. This was primarily due
to a drop in the profit of year-on-year investment security sales. Despite the challenging business environment, the net income stood at a comparable
level to last years’, and the operating income (aside from the cases of temporary impacts), has remained robust since 2010.
(Unit: KRW Billion)
Operating income
Net interest income
Net fee income
SG&A Expense
Other operating income (expense)
Non-operating income
Income before income tax
Income tax expense
net income
Interest Income and Expenses
2012
1,699
5,612
499
2,728
-1,684
76
1,775
327
1,449
2011
2,593
5,728
508
2,549
-1,094
66
2,659
590
2,069
Change
amount
-894
-116
-9
179
-590
10
-884
-263
-620
(%)
-34.5
-2.0
-1.8
7.0
53.9
15.2
-33.2
-44.6
-30.0
The Bank’s 2012 interest income was KRW 11,436 billion, down 1.9% from the previous year. Despite the growth in loan assets, the slowdown in the
financial market and the decreasing trend in the interest rate resulted in a drop in the interest on loans by 2.4% year-on-year, and also on securities.
Due to a higher drop in interest income than the drop in interest expense by 1.8% year-on-year, net interest income reached KRW 5,612 billion, down
2.0% from the previous year.
(Unit: KRW Billion)
Interest income
Interest on loans
Interest on securities
Other interest income
Interest expense
Interest on depository liabilities
Interest on borrowings
Interest on debentures issued
Other interest expense
net interest income
084
085
2012
11,436
10,001
1,261
174
5,825
4,476
929
312
108
5,612
2011
11,659
10,247
1,266
146
5,931
4,477
1,015
344
95
5,728
Change
amount
-223
-246
-5
28
-106
-1
-86
-32
13
-116
(%)
-1.9
-2.4
-0.4
19.2
-1.8
-0.0
-8.5
-9.3
13.7
-2.0
Impairment losses (for loans, Other Receivables, Guarantees and Unused commitments)
As for the impairment losses in 2012, the impairment losses on loans rose 5.1%, but losses on provisions plummeted by 100.9%. Thus, in overall
impairment losses went down 1.0% to KRW 1,798 billion.
(Unit: KRW Billion)
On loans
Bad debt expenses
Reversal of provision for loan losses and receivables
On provisions
Loan loss provisions
Reversal of provision
Total
SG&A Expenses
2012
1,799
1,841
42
-1
79
80
1,798
2011
1,711
1,788
77
106
149
43
1,817
Change
amount
88
53
-35
-107
-70
37
-19
(%)
5.1
3.0
-45.5
-100.9
-47.7
86.0
-1.0
Aside from a slight decrease in the salary for temporary employees, the 2012 expense items all rose with the SG&A expenses (recording KRW 2,728
billion), up 7.0% from the previous year. The Bank will do its utmost to maintain its overall SG&A expenses at an appropriate level through concerted
efforts to reduce expenses and prioritize efficiency in corporate management.
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(Unit: KRW Billion)
Salaries
Salaries for temporary employees
Retirement benefits and termination benefits
Depreciation
General administrative expenses
Welfare expenses
Rental expenses
Computer & software
Others
Total
non-operating Income
2012
1,248
1,038
210
132
1,348
298
205
261
584
2,728
2011
1,190
1,044
146
123
1,236
260
187
245
544
2,549
Change
amount
58
-6
64
9
112
38
18
16
40
179
(%)
4.9
-0.6
43.8
7.3
9.1
14.6
9.6
6.5
7.4
7.0
The Bank’s 2012 non-operating income slightly rose by 2.2% year-on-year. In particular, there was a year-on-year increase of KRW 35 billion for gain on the
valuation of investments for associates. Despite an increase of KRW 25 billion in donations, non-operating expenses dropped by 6.0% year-on-year, and the
total non-operating income reached KRW 76 billion, up 15.2% year-on-year.
(Unit: KRW Billion)
non-operating income
Gain on valuation of investment for associates
Gain on disposal of investment in associates
Rental income
Other operating income
2012
186
39
25
16
106
2011
182
4
26
19
133
Change
amount
4
35
-1
-3
-27
(%)
2.2
875.0
-3.8
-15.8
-20.3
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woori bank 2012 annUaL rEPorT
Management’s Discussion And Analysis
FOR THE YEARS ENDED DECEMBER 31, 2012 AND 2011
(Unit: KRW Billion)
non-operating expense
Donations
Depreciation in real estate properties
Others
Total non-operating income
Balance Sheet
2012
109
63
3
43
76
2011
116
38
3
75
66
Change
amount
-7
25
0
-32
10
(%)
-6.0
65.8
0.0
-42.7
15.2
The Bank’s total assets as of end-2012 were recorded at KRW 247,248 billion, up 2.0% from the previous year. Loans and bonds receivable, which
accounted for the largest portion of the assets, increased by KRW 8.1 trillion, up 4.2% year-on-year. Total liabilities accounted for KRW 228,682 billion,
up 1.9% from the previous year, and depository liabilities increased by KRW 3.9 trillion, or 2.4%, year-on-year. Although the scope of increase slightly
dropped, total shareholders’ equity increased by 2.4% year-on-year, and the increase has been maintained since 2010
(Unit: KRW Billion)
assets
Cash and cash equivalents
Financial assets
Loans and bonds receivable
Investment assets of related companies
Tangible and other assets
Liabilities
Depository liabilities
Borrowings
Bonds issued
Other liabilities
Shareholders’ equity
loans/Depository liabilities
2012
247,248
4,593
38,682
200,049
550
3,374
228,682
168,008
17,446
17,842
25,386
18,566
2011
242,472
5,389
41,389
191,909
376
3,409
224,346
164,092
19,175
19,811
21,268
18,126
Change
amount
4,776
-796
-2,707
8,140
174
-35
4,336
3,916
-1,729
-1,969
4,118
440
(%)
2.0
-14.8
-6.5
4.2
46.3
-1.0
1.9
2.4
-9.0
-9.9
19.4
2.4
In 2012, the Bank’s loans rose by KRW 4.1 trillion up 2.4% from the previous year. This was primarily driven by the increase of loans in local currency,
which accounted for the largest portion of the loans, by KRW 2.9 trillion, or 2.1%. Depository liabilities increased by KRW 3.9 trillion, or 2.4% from the
previous year. In particular, depository liabilities in local currency, increased by KRW 2.8 trillion, or 1.9%. The Bank will continue to expand high-yield
assets and its customer base, thus achieving higher profits and asset quality.
(Unit: KRW Billion)
Loans
Loans in local currency
Loans in foreign currencies
Domestic usance bills
Credit card receivables
Bills bought in foreign currency
086
087
2012
175,859
144,645
9,505
4,893
4,118
4,129
2011
171,767
141,733
12,024
5,087
4,195
5,162
Change
amount
4,092
2,912
-2,519
-194
-77
-1,033
(%)
2.4
2.1
-20.9
-3.8
-1.9
-20.0
(Unit: KRW Billion)
Others
(Provisions for bad debts)
Depository liabilities
Depository liabilities in local currency
CD
Other deposits
Depository liabilities in foreign currencies
(Present value discount account)
capital Adequacy
2012
11,517
-2,948
168,008
151,349
1,145
4,459
11,065
-10
2011
6,534
-2,968
164,092
148,549
959
4,232
10,371
-19
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Change
amount
4,983
-20
3,916
2,800
186
227
694
-9
(%)
76.3
-0.7
2.4
1.9
19.4
5.4
6.7
-47.4
In 2012, the Bank’s BIS ratio remained at a stable level with increases in retained earnings, reaching 14.70%, up 0.92%p from the previous year, while
the Tier 1 ratio remained stable at 11.35%, up 0.61%p year-on-year.
(Unit:%)
BIS
Tier1
Asset Quality
2012
14.70
11.35
2011
13.78
10.74
Change(%p)
0.92
0.61
As a representative asset quality indicator, the NPL ratio was maintained at a similar level 1.66% year-on-year although the delinquency ratio reached
1.20%, up 0.38% year-on-year thanks to management's emphasis on delinquent loan control and the Bank's effort to minimize the exessive increase of
bad debts. Since the domestic economy is projected to confront a challenging environment, e.g. decrease in real estate prices and increase in household
debts, the Bank will do its utmost to secure asset soundness through preemptive risk management.
(Unit:%)
NPL ratio
Delinquency Ratio
Key Performance Indicators
2012
1.66
1.20
2011
1.65
0.82
Change(%p)
0.01
0.38
Driven by the economic slowdown and a continuum of low interest rates, the Bank’s Return on Assets (ROA) in 2012 was 0.49%, along with the Return
on Equity (ROE) of 6.89% and a Net Interest Margin (NIM) of 2.35%. Below three profitability indicators decreased slightly from the previous year.
Meanwhile, the SG&A expense ratio, increased slightly to 45.32% from the previous year. The Bank will strive to raise its profits and asset quality through
preemptive risk management, increased managerial efficiency and future growth-engine driven strategies in preparation for a possible low-growth and
low interest rate economic environment.
(Unit:%)
Return on Assets (ROA)
Return on Equity (ROE)
Net Interest Margin (NIM)
SG&A Expense Ratio
2012
0.49
6.89
2.35
45.32
2011
0.59
7.93
2.46
41.07
Change(%p)
-0.10
-1.04
-0.11
4.25
086
087
woori bank 2012 annUaL rEPorT
Independent Auditors’ Report
English Translation of a Report Originally Issued in Korean
To the Shareholder and the Board of Directors of woori Bank
We have audited the accompanying consolidated financial statements of Woori Bank and its subsidiaries (the “Group”). The financial statements consist
of the consolidated statements of financial position as of December 31, 2012 and December 31, 2011, respectively, and the related consolidated
statements of comprehensive income, changes in equity and cash flows, all expressed in Korean won, for the years ended December 31, 2012 and
2011, respectively. The Group’s management is responsible for the preparation and fair presentation of the consolidated financial statements and our
responsibility is to express an opinion on these consolidated financial statements based on our audits.
We conducted our audits in accordance with auditing standards generally accepted in the Republic of Korea. Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting
principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our
audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the Group as of December
31, 2012 and December 31, 2011, respectively, and the results of its operations and its cash flows for the years ended December 31, 2012 and 2011,
respectively, in conformity with Korean International Financial Reporting Standards (“K-IFRS”).
Accounting principles and auditing standards and their application in practice vary among countries. The accompanying consolidated financial statements
are not intended to present the financial position, results of operations and cash flows in accordance with accounting principles and practices generally
accepted in countries other than the Republic of Korea. In addition, the procedures and practices utilized in the Republic of Korea to audit such financial
statements may differ from those generally accepted and applied in other countries. Accordingly, this report and the accompanying consolidated
financial statements are for use by those knowledgeable about Korean accounting procedures and auditing standards and their application in practice.
February 25, 2013
Notice to Readers
This report is effective as of February 25, 2013, the auditors’ report date. Certain subsequent events or circumstances may have occurred between this
auditors’ report date and the time the report is read. Such events or circumstances could significantly affect the accompanying consolidated financial
statements and may result modifications to the auditors’ report.
088
089
woori bank and subsidiaries
consolidated statements of financial position
AS OF DECEMBER 31, 2012 AND DECEMBER 31, 2011
(Unit : Korean Won In millions)
aSSETS
Cash and cash equivalents (Note 6)
Financial assets at fair value through profit or loss (Notes 7,11 and 19)
Available-for-sale financial assets (Notes 8, 11 and 19)
Held-to-maturity financial assets (Notes 9, 11 and 19)
Loans and receivables (Notes 10, 11and 19)
December 31, 2012
December 31, 2012
\
4,593,150 \
5,389,267
9,855,553
14,484,530
14,341,506
11,317,845
14,670,607
15,400,425
200,049,106
191,909,032
I
F
I
n
A
n
c
A
l
R
E
v
I
E
w
Investments in associates (Note 13)
Investment properties (Note 14)
Premises and equipment, net (Note 15)
Intangible assets, net (Note 16)
Other assets (Note 17)
Current tax assets (Note 42)
Deferred tax assets (Note 42)
Derivative assets (Notes 11 and 26)
Assets held for sale (Note 18)
Total assets
LiabiLiTiES
Financial liabilities at fair value through profit or loss (Notes 11 and 20)
Deposits due to customers (Notes 11 and 21)
Borrowings (Notes 11 and 22)
Debentures (Notes 11 and 22)
Provisions (Notes 23 and 24)
Current tax liabilities (Note 42)
Other financial liabilities (Notes 11 and 25)
Other liabilities (Note 25)
Deferred tax liabilities (Note 42)
Derivative liabilities (Notes 11 and 26)
Total liabilities
(Continued)
550,332
346,182
2,385,680
108,920
178,460
1,882
82,397
269,414
1,239
376,337
349,459
2,345,960
147,387
225,530
2,393
9,249
326,413
2,258
\
247,248,351 \
242,472,162
3,468,696
3,509,566
168,007,679
164,092,476
17,445,898
17,841,978
645,378
136,517
19,174,642
19,811,813
607,612
206,367
20,721,110
16,346,969
383,677
7,697
23,827
444,549
126,446
25,582
\
228,682,457 \
224,346,022
088
089
woori bank 2012 annUaL rEPorT
woori bank and subsidiaries
consolidated statements of financial position (continued)
AS OF DECEMBER 31, 2012 AND DECEMBER 31, 2011
(Unit : Korean Won In millions)
EQUiTY
OWNER’S EQUITY:
Capital stock (Note 28)
Hybrid equity securities (Note 28)
Capital surplus (Note 28)
Other equity (Note 29)
Retained earnings (Note 30)
(Beginning balance of Regulatory reserve for credit loss as of December 31, 2012 is
\1,123,866 million and amount estimated to be appropriated as of December 31, 2012 and
December 31, 2011 were \259,055 million and \1,123,866 million, respectively) (Note 31)
non-ConTroLLinG inTErESTS
Total equity
Total liabilities and equity
See accompanying notes to consolidated financial statements.
December 31, 2012
December 31, 2011
\
3,829,783 \
1,681,807
812,016
130,643
3,829,783
1,681,807
812,016
538,385
12,104,034
11,256,207
18,558,283
18,118,198
7,611
7,942
18,565,894
18,126,140
\
247,248,351 \
242,472,162
090
091
woori bank and subsidiaries
consolidated statements of comprehensive income
FOR THE YEARS ENDED DECEMBER 31, 2012 AND 2011
(Unit : Korean Won In millions, except for income per share amount)
2012
2011
oPEraTinG inCoME
Net interest income (Note 33):
Interest income
Interest expense
Net fees and commissions income (Note 34):
Fees and commissions income
Fees and commissions expense
Dividend income (Note 35)
Gain on financial instruments at fair value through profit or loss (Note 36)
Gain on available-for-sale financial assets (Note 37)
Impairment losses for loans, other receivables, guarantees and unused
commitments (Note 39)
\
11,436,460 \
(5,824,506)
5,611,954
1,040,633
(541,886)
498,747
94,847
(355,739)
552,325
11,659,258
(5,931,047)
5,728,211
993,929
(485,938)
507,991
123,150
106,682
1,016,746
(1,797,702)
(1,816,603)
I
F
I
n
A
n
c
A
l
R
E
v
I
E
w
General and administrative expenses (Note 40) :
Employee compensation and benefits
Depreciation
Other general and administrative expenses
Net other operating income (expenses) (Note 40)
non-oPEraTinG inCoME (note 41) :
Share of profits(losses) of associates
Other non-operating income
nET inCoME bEForE inCoME TaX EXPEnSE
inCoME TaX EXPEnSE (note 42)
nET inCoME (note 31)
(1,247,956)
(131,970)
(1,347,714)
(2,727,640)
(177,835)
1,698,957
27,426
48,902
76,328
1,775,285
(326,710)
(1,189,959)
(123,307)
(1,236,094)
(2,549,360)
(523,629)
2,593,188
(23,913)
89,896
65,983
2,659,171
(589,800)
(Net income after the planned reserves provided for the years ended December
31, 2012 and 2011 are \1,189,520 million and \1,459,181 million,
respectively)
Net income attributable to owner
Net income attributable to the non-controlling interests
\
1,448,575
2,069,371
1,447,904
671 \
2,068,544
827
(Continued)
090
091
woori bank 2012 annUaL rEPorT
woori bank and subsidiaries
consolidated statements of comprehensive income (continued)
FOR THE YEARS ENDED DECEMBER 31, 2012 AND 2011
(Unit : Korean Won In millions, except for income per share data)
OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX
2012
2011
Loss on valuation of available-for-sale financial assets
\
(335,825) \
Share of other comprehensive income(loss) on investment in associates
Gain(loss) on overseas business translation
Gain on valuation of cash flow hedge
TOTAL COMPREHENSIVE INCOME
Comprehensive income attribute to owner
Comprehensive income attribute to the non-controlling interests
NET INCOME PER SHARE (In Korean Won) (Note 43)
Basic earnings per common share
Diluted earnings per common share
See accompanying notes to consolidated financial statements.
\
\
\
1,210
(75,114)
983
(408,746)
1,039,829 \
1,040,161
(332)
1,826 \
1,732 \
(396,510)
(22,348)
12,152
6,868
(399,838)
1,669,533
1,668,675
858
2,687
2,514
092
093
woori bank and subsidiaries
consolidated statements of changes in equity
FOR THE YEAR ENDED DECEMBER 31, 2012 AND 2011
I
F
I
n
A
n
c
A
l
R
E
v
I
E
w
Capital
stock
Hybrid
equity
securities
Capital
surplus
Loss on
valuation of
available-for-
sale financial
assets
Gain on
valuation of
cash flow
risk hedge
Gain
(loss) on
overseas
business
translation
Share of
other
comprehen-
sive loss on
associates other
retained
earnings
Controlling
equity
non-
controlling
equity
Total
Equity
\ 3,829,783 \ 2,181,806 \ 811,421 \
939,938 \
(9,298) \ (13,241) \
20,857 \ 4 \ 9,718,577 \ 17,479,847 \
7,084 \ 17,486,931
-
-
-
-
-
-
-
-
-
(499,999)
-
-
-
-
-
-
-
-
-
-
-
-
-
595
-
-
-
(396,510)
-
-
-
-
-
-
-
-
-
6,868
-
-
-
-
-
-
12,121
-
-
-
(530,273)
(530,273)
-
(500,000)
-
-
(530,273)
(500,000)
2,068,544
2,068,544
827
2,069,371
(396,510)
-
(396,510)
12,121
31
12,152
6,868
(22,348)
-
-
-
6,868
(22,348)
(51)
-
(5)
(641)
(51)
\ 3,829,783 \ 1,681,807 \ 812,016 \
543,428 \
(2,430) \
(1,120) \
(1,491) \ (2) \ 11,256,207 \ 18,118,198 \
7,942 \ 18,126,140
\ 3,829,783 \ 1,681,807 \ 812,016 \
543,428 \
(2,430) \ (1,120) \
(1,491) \ (2)
\11,256,207 \ 18,118,198 \
7,942 \ 18,126,140
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(335,825)
-
-
-
-
-
-
-
-
-
983
-
-
-
-
-
-
(74,112)
-
-
-
(600,075)
(600,075)
(1)
(1)
-
-
(600,075)
(1)
1,447,904
1,447,904
671
1,448,575
(335,825)
-
(335,825)
(74,112)
(1,002)
(75,114)
983
1,210
-
-
-
983
1,210
1
-
2
(1)
1
-
-
-
-
-
-
(22,348)
-
(1)
-
-
-
-
-
-
-
-
-
-
-
1,210
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
\ 3,829,783 \ 1,681,807 \ 812,016 \
207,603 \
(1,447) \ (75,232) \
(281) \ - \ 12,104,034 \ 18,558,283 \
7,611 \ 18,565,894
(Unit: Korean Won in millions)
Balance as of January
1, 2011
Dividends
Redemption of hybrid
equity securities
Net income
Valuation of available-
for-sale financial assets
Translation of overseas
business
Cash flow hedge
Changes in equity of
investment in associate
Other
Balance as of
December 31, 2011
balance as of
January 1, 2012
Dividends
amortization of
hybrid equity
securities
net income
Variation of available-
for-sale financial assets
Translation of overseas
business
Cash flow hedge
Changes in equity of
investment in
associate
other
balance as of
December 31, 2012
See accompanying notes to consolidated financial statements.
092
093
woori bank 2012 annUaL rEPorT
woori bank and subsidiaries
consolidated statements of cash flows
FOR THE YEAR ENDED DECEMBER 31, 2012 AND 2011
2012
2011
\
1,448,575 \
2,069,371
(11,436,460)
5,824,506
(94,847)
326,710
(5,380,091)
1,797,702
152,920
49,956
43,817
11,389
167
346
135,407
1,776
27,652
(11,659,258)
5,931,047
(123,150)
589,800
(5,261,561)
1,816,603
100,582
10,513
200,455
28,268
-
2,675
126,740
4,614
2,654
2,221,132
2,293,104
552,325
39,232
43,879
38,815
25,102
1,549
2,175
3,141
1,016,746
193,374
4,921
4,355
26,231
65,166
321
-
706,218
1,311,114
(Unit : Korean Won In millions)
CaSH FLowS FroM oPEraTinG aCTiViTiES:
Net income
Adjustment to net income:
Interest income
Interest expense
Dividend income
Income tax expense
Additions of expenses not involving cash outflows:
Impairment losses for loans, other receivables, guarantees and unused commitments
Retirement benefits
Loss on derivatives for hedging
Loss on fair value hedged items
Loss on valuation of investment in associates
Loss on disposal of investment in associates
Loss on disposal of premises and equipment, intangible assets and investment properties
Depreciation and amortization of premises and equipment, intangible assets and
investment properties
Impairment loss on premises and equipment, intangible assets and investment properties
Provisions
Deductions of revenues not involving cash inflows:
Gain on available-for-sale financial assets
Gain on derivatives for hedging
Gain on fair value hedged items
Gain on valuation of investment in associates
Gain on disposal of investment in associates
Gain on disposal of premises and equipment, intangible assets and investment properties
Reversal of impairment loss on premises and equipment, intangible assets and
investment properties
Provisions
(Continued)
094
095
I
F
I
n
A
n
c
A
l
R
E
v
I
E
w
(Unit : Korean Won In million)
Changes in operating assets and liabilities:
2012
2011
Decrease (increase) in financial instruments at fair value through profit or loss
\
1,421,421 \
(1,433,804)
(Increase) in loans and receivables
Decrease (increase) in other assets
Increase in deposits due to customers
(Decrease) in provisions
Increase in other financial liabilities
(Decrease)increase in other liabilities
Interest income received
Interest expense paid
Dividend received
Income taxes paid
Net cash provided by operating activities
CaSH FLowS FroM inVESTinG aCTiViTiES:
Cash in-flows from investing activities:
Disposal of available-for-sale financial assets
Disposal of held-to-maturity financial assets
Disposal of investment in associates
Disposal of investment properties
Disposal of premises and equipment
Disposal of intangible assets
Disposal of assets held for sale
Cash out-flows from investing activities:
Acquisition of available-for-sale financial assets
Acquisition of held-to-maturity financial assets
Acquisition of investment in associates
Acquisition of premises and equipment
Acquisition of intangible assets
Decrease in hedging derivatives
Net cash provided by (used in) investing activities
(Continued)
(9,338,844)
(15,971,167)
33,735
3,912,425
(143,743)
4,487,718
(12,642)
360,070
11,499,389
(5,917,345)
94,847
(444,888)
3,175,471
17,389,744
9,795,378
15,171
-
7,539
566
1,725
(38,933)
6,778,167
(122,730)
7,416,374
182,271
(3,189,822)
11,618,277
(5,813,790)
123,150
(361,384)
166,231
11,088,564
5,761,763
139,395
11,780
10,637
1,466
5,644
27,210,123
17,019,249
17,518,312
9,024,781
59,918
131,849
9,423
1,708
26,745,991
464,132
8,504,277
5,323,490
222,100
92,538
157,454
-
14,299,859
2,719,390
094
095
woori bank 2012 annUaL rEPorT
woori bank and subsidiaries
consolidated statements of cash flows (continued)
FOR THE YEAR ENDED DECEMBER 31, 2012 AND 2011
(Unit : Korean Won In million)
CaSH FLowS FroM FinanCinG aCTiViTiES:
Cash in-flows from financing activities:
Issue of borrowings
Issue of debentures
Increase in hedging derivatives
Cash out-flows from financing activities:
Repayment of borrowings
Repayment of debentures
Decrease in hedging derivatives
Repayment of hybrid securities
Dividends paid
Net cash used in financing activities
EFFECTS oF EXCHanGE raTE CHanGES on CaSH anD CaSH EQUiVaLEnTS
nET (DECrEaSE)inCrEaSE in CaSH anD CaSH EQUiVaLEnTS
CaSH anD CaSH EQUiVaLEnTS, bEGinninG oF THE YEar (note 6)
2012
2011
\
3,977,649 \
5,390,611
91,397
9,459,657
5,707,281
7,367,677
44,187
-
609,251
13,728,396
(4,268,739)
(166,981)
(796,117)
5,389,267
4,521,806
3,020,798
193,666
7,736,270
4,330,135
3,590,090
204,027
500,000
521,892
9,146,144
(1,409,874)
27,836
1,503,583
3,885,684
5,389,267
CaSH anD CaSH EQUiVaLEnTS, EnD oF THE YEar(note 6)
\
4,593,150 \
See accompanying notes to consolidated financial statements.
096
097
woori bank and subsidiaries
notes to consolidated finacial statements
FOR THE YEARS ENDED DECEMBER 31, 2012 AND 2011
1. GEnERAl
(1) woori bank
Woori Bank (hereafter referred to as, the ”Bank” or the “Parent” or the “Company”) was established in 1899 and is engaged in the commercial banking
business under the Banking Law, trust business under the Financial Investment Services and Capital Market Act and foreign exchange business with
approval from the Bank of Korea (“BOK”) and the Ministry of Finance and Economy (“MOFE”).
On March 27, 2001, Korea Deposit Insurance Corporation (“KDIC”) established Woori Finance Holdings Co., Ltd. (“WFH”). The Bank is a wholly owned
subsidiary of WFH as of December 31, 2012. The Bank’s common stock and preferred stock amount, expressed in Korean Won (the “KRW” or “\”),
to \3,479,783 million and \350,000 million, respectively, and the Bank’s common and preferred shares issued and outstanding as of December 31,
2012 are 696 million shares and 70 million shares, respectively. The head office of the Bank is located in Seoul, Korea. The Bank has 993 branches and
offices in Korea, and 16 branches and offices in overseas.
(2) Subsidiaries
1) The financial statements for the bank and its subsidiaries (the “Group”) include the following subsidiaries (Unit: korean won
in millions, USD in thousands, rUb in 100 millions, iDr in millions, brL in thousands ):
Subsidiaries
Location
Capital stock Main business
December 31, 2012
number of
Shares owned
Percentage
of ownership
(%)
Financial
statements
as of
Woori Credit Information
Co., Ltd.
Woori America Bank
Korea
U.S.A
KRW
5,000
Credit information
1,008,000
100.0 December. 31
USD
122,500
Banking
24,500,000
100.0 December. 31
PT. Bank Woori Indonesia
Indonesia
IDR
170,000
Banking
1,618
95.2 December. 31
I
F
I
n
A
n
c
A
l
R
E
v
I
E
w
Woori Global Market Asia
Limited
Woori Bank China Limited
ZAO Woori Bank
China
Russia
Banco Woori Bank do Brasil
Brasil
Hongkong
USD
50,000
Banking
39,000,000
100.0 December. 31
USD
RUB
BRL
308,810
Banking
5
Banking
40,000
Banking
-
100.0 December. 31
19,999,999
39,999,999
100.0 December. 31
100.0 December. 31
Korea BTL Infrastructure Fund
Korea
KRW
576,700
Financial service
115,332,541
100.0 December. 31
Woori Fund Service Co., Ltd.
Korea
KRW
3,000
Financial service
600,000
100.0 December. 31
Subsidiaries
Location
Capital stock Main business
December 31, 2011
number of
Shares owned
Percentage
of ownership
(%)
Financial
statements
as of
Woori Credit Information
Co., Ltd.
Woori America Bank
Korea
U.S.A
KRW
5,000
Credit information
1,008,000
100.0 December. 31
USD
122,500
Banking
24,500,000
100.0 December. 31
PT. Bank Woori Indonesia
Indonesia
IDR
170,000
Banking
1,618
95.2 December. 31
Woori Global Market Asia
Limited
Hongkong
USD
50,000
Banking
39,000,000
100.0 December. 31
096
097
woori bank 2012 annUaL rEPorT
Subsidiaries
Location
Capital stock Main business
Woori Bank China Limited
ZAO Woori Bank
China
Russia
USD
RUB
308,810
Banking
5
Banking
Korea BTL Infrastructure Fund
Korea
KRW
467,000
Financial service
December 31, 2011
number of
Shares owned
Percentage
of ownership
(%)
Financial
statements
as of
-
100.0 December. 31
19,999,999
93,393,568
100.0 December. 31
100.0 December. 31
Woori Fund Service Co., Ltd.
Korea
KRW
3,000
Financial service
600,000
100.0 December. 31
2) Subsidiaries newly added to consolidated financial statements for the year ended December 31, 2012 are as follows:
Subsidiaries
Banco Woori Bank do Brasil
reasons
New establishment
3) For special purpose entities (“SPEs”), in accordance with korean international Financial reporting Standards (“k-iFrS”) 2012
‘Consolidation-special purpose entities’, entities which the Group has decision making power and/or carries the benefits and
risks of such entities, are included in the consolidation. Details of special purposes entities under consolidation are as follows:
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