W
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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
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180
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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
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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
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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
-
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:
Subsidiaries
Kumho Trust 1st Co., Ltd. (*1)
Woori IB Global Bond Co., Ltd. (*1)
Asiana Saigon Inc. (*1)
An-Dong Raja 1st Co., Ltd. (*1)
KAMCO Value Recreation 1st Securitization Specialty Co., Ltd. (*1)
IB Global 1st Co., Ltd. (*1)
Hermes STX Co., Ltd. (*1)
BWL 1st Co., LLC. (*1)
Consus 8th Co., LLC. (*1)
Woori Pungsan Inc. (*1)
Pyeongtaek Ocean Sand Inc. (*1)
Woori Bank Preservation Trust of principal and interest (*2)
Haeoreum Short-term Bond 15th (*3)
G5 Pro Short-term 13th (*3)
G6 First Class Mid-term E-20 (*3)
G15 First Class Mid-term C-1 (*3)
D First Class Mid-term C-151 (*3)
098
099
Location Main business
Percentage
of owner-ship
(%)
Financial
statements
as of
korea
korea
korea
korea
korea
korea
korea
korea
korea
korea
korea
korea
korea
korea
korea
korea
korea
asset Securitization
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
Trust
0.0 December. 31
0.0 December. 31
0.0 December. 31
0.0 December. 31
15.0 December. 31
0.0 December. 31
0.0 December. 31
0.0 December. 31
0.0 December. 31
0.0 December. 31
0.0 December. 31
0.0 December. 31
Securities investment
100.0 December. 31
〃
〃
〃
〃
100.0 December. 31
100.0 December. 31
100.0 December. 31
100.0 December. 31
I
F
I
n
A
n
c
A
l
R
E
v
I
E
w
Subsidiaries
Golden Bridge Sidus FNH video (*3)
Golden Bridge NHN Online Private Equity Investment (*3)
Woori CS Ocean Bridge 7th (*3)
Woori Milestone Private Real Estate Fund 1st (*3)
Consus Sakhalin Real Estate Investment Trust 1st (*3)
Woori Partner Plus Private Equity Securities 4th (*3)
Woori Partner Plus Private Equity Securities 9th (*3)
Hanwha Smart Private Trust 50th (Bond) (*3)
Samsung Plus Private Investment Trust 20th (*3)
KDB Private Equity Securities Investment Trust WB 3rd (Bond) (*3)
Shinhan BNPP Corporate Private Investment Trust 17th (*3)
Woori Partner Plus Private Equity Securities 10th (*3)
Yurie WB Private Investment Trust 4th (Bond) (*3)
Samsung Plus Private Investment Trust 21th (*3)
KDB Private Equity Securities Investment Trust WB 4th (Bond) (*3)
Kyobo Axa Tomorrow Private Trust 13th (Bond) (*3)
Say Private Investment Trust WB 1st (*3)
Hanwha Private Investment Trust 32nd(*3)
Eugene Pride Private Trust 28th (*3)
Hyundai Advantage Private Trust 15th (*3)
Woori Smart Investor Private Investment Trust 2nd (*3)
Hana USB Power Private Equity Securities 5th (*3)
Mirae Asset Korea Blue Chips Private Trust 3th (*3)
HDC New Star Private Equity Securities15th (*3)
LS Leading Solution Private Equity Securities118th (*3)
Hyundai Platinum Private Equity Securities W-1(*3)
Hana USB Power Private Equity Securities 15th (*3)
Phoenix Sky Private Equity Securities 11th (*3)
Woori Partner Plus Private Equity Securities 11th (*3)
Mirae Asset Triumph Private Securities 9th (Bond) (*3)
Kyobo Axa Tomorrow Private Trust 15th (Bond) (*3)
Meritz Prime Private Equity Securities 79th (*3)
HDC New Star Private Equity Securities17th (Balance Fund) (*3)
Hyundai Advantage Private Trust 16th (*3)
Phoenix private placement Investment Trust 13th (*3)
Hanwha Private Investment Trust 43nd (*3)
Location Main business
Percentage
of owner-ship
(%)
Financial
statements
as of
korea
korea
korea
korea
korea
korea
korea
korea
korea
korea
korea
korea
korea
korea
korea
korea
korea
korea
korea
korea
korea
korea
korea
korea
korea
korea
korea
korea
korea
korea
korea
korea
korea
korea
korea
korea
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
58.8 December. 31
60.0 December. 31
61.1 December. 31
94.8 December. 31
75.0 December. 31
100.0 December. 31
100.0 December. 31
100.0 December. 31
100.0 December. 31
100.0 December. 31
100.0 December. 31
100.0 December. 31
100.0 December. 31
100.0 December. 31
100.0 December. 31
100.0 December. 31
100.0 December. 31
100.0 December. 31
100.0 December. 31
100.0 December. 31
100.0 December. 31
100.0 December. 31
100.0 December. 31
100.0 December. 31
100.0 December. 31
100.0 December. 31
100.0 December. 31
100.0 December. 31
100.0 December. 31
100.0 December. 31
100.0 December. 31
100.0 December. 31
100.0 December. 31
100.0 December. 31
100.0 December. 31
100.0 December. 31
098
099
woori bank 2012 annUaL rEPorT
Subsidiaries
Kumho Trust 1st Co., Ltd. (*1)
Woori IB Global Bond Co., Ltd. (*1)
Asiana Saigon Inc. (*1)
An-Dong Raja 1st Co., Ltd. (*1)
KAMCO Value Recreation 1st Securitization Specialty Co., Ltd. (*1)
IB Global 1st Co., Ltd. (*1)
Hermes STX Co., Ltd. (*1)
BWL 1st Co., LLC. (*1)
Consus 8th Co., LLC. (*1)
Real DW 2nd Co., Ltd. (*1)
Woori Pungsan Inc. (*1)
Pyeongtaek Ocean Sand Inc. (*1)
Woori Bank Preservation Trust of principal and interest (*2)
Haeoreum Short-term Bond 15th (*3)
G5 Pro Short-term 13th (*3)
G6 First Class Mid-term E-20 (*3)
G15 First Class Mid-term C-1 (*3)
D First Class Mid-term C-151 (*3)
Golden Bridge Sidus FNH video (*3)
Golden Bridge NHN Online Private Equity Investment (*3)
Woori CS Ocean Bridge 7th (*3)
Woori Milestone Private Real Estate Fund 1st (*3)
Woori Milestone China Real Estate Fund 1st (*3)
Consus Sakhalin Real Estate Investment Trust 1st (*3)
Woori Partner Plus Private Equity Securities 4th (*3)
Allianz Blue Ocean Private Trust 5th (*3)
Mirae Asset Maps Blue Chips Private Trust 2nd (*3)
Hyundai Advantage Private Trust 14th (*3)
Kyobo Axa Long Short Private Trust 2nd (*3)
Hanhwa Quant Long Short Private Equity3rd (*3)
Woori Frontier Alpha Private Equity 8th (*3)
Midas Private investment Trust W-3rd (*3)
Consus Private Securities Investment Trust 54th (*3)
Woori Partner Plus Private Trust 7th (*3)
Yurie WB Private Investment Trust 3rd (Bond) (*3)
100
101
Location Main business
Percentage
of owner-ship
(%)
Financial
statements
as of
Korea
Korea
Korea
Korea
Korea
Korea
Korea
Korea
Korea
Korea
Korea
Korea
Korea
Korea
Korea
Korea
Korea
Korea
Korea
Korea
Korea
Korea
Korea
Korea
Korea
Korea
Korea
Korea
Korea
Korea
Korea
Korea
Korea
Korea
Korea
Asset Securitization
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
Trust
0.0 December. 31
0.0 December. 31
0.0 December. 31
0.0 December. 31
15.0 December. 31
0.0 December. 31
0.0 December. 31
0.0 December. 31
0.0 December. 31
0.0 December. 31
0.0 December. 31
0.0 December. 31
0.0 December. 31
Securities investment
100.0 December. 31
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
100.0 December. 31
100.0 December. 31
100.0 December. 31
100.0 December. 31
58.8 December. 31
60.0 December. 31
61.1 December. 31
94.8 December. 31
80.7 December. 31
75.0 December. 31
100.0 December. 31
100.0 December. 31
100.0 December. 31
100.0 December. 31
100.0 December. 31
100.0 December. 31
100.0 December. 31
100.0 December. 31
100.0 December. 31
100.0 December. 31
100.0 December. 31
Subsidiaries
Location Main business
KDB Private Equity Securities Investment Trust WB 2nd (Bond) (*3)
Samsung Plus Private Investment Trust 13th (*3)
Hanwha Smart Private Trust 43rd (Bond) (*3)
Eugene Pride Private Trust 21st (Bond) (*3)
Meritz Prime Private Trust 42nd (Bond) (*3)
Woori Partner Plus Private Equity Securities 8th (*3)
Woori Partner Plus Private Equity Securities 9th (*3)
Hanwha Smart Private Trust 50th (Bond) (*3)
Korea
Korea
Korea
Korea
Korea
Korea
Korea
Korea
〃
〃
〃
〃
〃
〃
〃
〃
I
F
I
n
A
n
c
A
l
R
E
v
I
E
w
Percentage
of owner-ship
(%)
Financial
statements
as of
100.0 December. 31
100.0 December. 31
100.0 December. 31
100.0 December. 31
100.0 December. 31
100.0 December. 31
100.0 December. 31
100.0 December. 31
(*1) Classified as SPEs for asset securitization and included in consolidation scope, considering the activities of the SPEs, decision-making power maintained by the Group, and the benefits
and risks although the Group has less than majority ownership of the SPEs.
(*2) Classified as SPEs for money trust under Capital Market Integration Act and included in consolidation scope, considering the activities of the SPEs, decision-making power maintained
by the Group and the benefits and risks carried by the Group although the Group has less than majority ownership for the SPEs.
(*3) Classified as SPEs for investing in securities and other and included in consolidation scope, considering the activities of the SPEs, decision-making power maintained by the Group,
and the benefits and risks carried by the Group.
4) Details of special purpose entities newly included in consolidation scope for the year ended December 31, 2012 are as follows:
Special Purposed Entities
reasons
Classified as SPEs for investing in securities and other. The activities of
entities, decision-making powers and benefits and risks are considered
when those SPEs are consolidated.
Samsung Plus Private Investment Trust 20th
Dongbu Premium Private Investment Trust 7th
Woori Partner Plus Private Equity Securities 10th
Shinhan BNPP Corporate Private Investment Trust 17th
KDB Private Equity Securities Investment Trust WB 3rd (Bond)
Woori Smart Investor Private Investment Trust 1st
Yurie WB Private Investment Trust 4th (Bond)
Samsung Plus Private Investment Trust 21th
KDB Private Equity Securities Investment Trust WB 4th (Bond)
Kyobo Axa Tomorrow Private Trust 13th (Bond)
Say Private Investment Trust WB 1st
Hanwha Private Investment Trust 32nd
Eugene Pride Private Trust 28th
Woori Smart Investor Private Investment Trust 2nd
Consus Private Investment Trust 64th
Hyundai Advantage Private Trust 15th
Hana USB Power Private Equity Securities 5th
Mirae Asset Korea Blue Chips Private Trust 3th
HDC New Star Private Equity Securities15th
LS Leading Solution Private Equity Securities118th
100
101
woori bank 2012 annUaL rEPorT
Special Purposed Entities
reasons
Hana USB Power Private Equity Securities 15th
Hyundai Platinum Private Equity Securities W-1
Phoenix Sky Private Equity Securities 11th
Woori Partner Plus Private Equity Securities 11th
Mirae Asset Triumph Private Securities 9th (Bond)
Kyobo Axa Tomorrow Private Trust 15th (Bond)
Meritz Prime Private Equity Securities 79th (Bond)
HDC New Star Private Equity Securities17th (Balance Fund)
Hyundai Advantage Private Trust 16th
Phoenix private placement Investment Trust 13th
Hanwha Private Investment Trust 43nd
5) Details of special purpose entities excluded from consolidation for the year ended December 31, 2012 are as follows:
Special Purposed Entities
Real DW 2nd Co., Ltd.
reasons
End of Liquidity Schedule
Woori Milestone China Real Estate Fund 1st
Disposal and repayment of beneficiary certificates
Woori Partner Plus Private Trust 7th
Midas Private Investment Trust W-3rd
Allianz Blue Ocean Private Trust 5th
Yurie WB Private Investment Trust 3rd (Bond)
KDB Private Equity Securities Investment Trust WB 2nd (Bond)
Samsung Plus Private Investment Trust 13th
Woori Frontier Alpha Private Equity 8th
Kyobo Axa Long Short Private Trust 2nd
Hanwha Smart Private Trust 43rd (Bond)
Eugene Pride Private Trust 21st (Bond)
Consus Private Securities Investment Trust 54th
Hanhwa Quant Long Short Private Equity 3rd
Hyundai Advantage Private Trust 14th
Mirae Asset Maps Blue Chips Private Trust 2nd
Dongbu Premium Private Investment Trust 7th
Woori Smart Investor Private Investment Trust 1st
Woori Partner Plus Private Equity Securities 8th
Meritz Prime Private Trust 42nd (Bond)
Consus Private Investment Trust 64 th
102
103
6) Details of special purpose entities newly included in consolidation scope for the year ended December 31, 2011 are as follows:
reasons
Classified as a SPEs for asset securitization. The activities of entities,
decision-making powers and benefits and risks are considered when those
SPEs are consolidated even if the Group has less than majority ownership
for them.
Classified as SPEs for investing in securities and other. The activities
of entities, decision-making powers and benefits and risks are considered
when those SPEs are consolidated.
I
F
I
n
A
n
c
A
l
R
E
v
I
E
w
Special Purposed Entities
Woori Pungsan Inc.
Pyeongtaek Ocean Sand Inc.
Allianz Blue Ocean Private 5th
Mirae Asset Maps Blue Chips Private 2nd
Hyundai Advantage Private 14th
Kyobo Axa Long Short Private Trust 2nd
Hanhwa Quant Long Short Private 3rd
Woori Frontier Alpha Private Equity 8th
Midas Private Investment Trust W 3rd
Consus Private Security Investment Trust 54th
Woori Partner Plus Private Equity Securities 7th
Yurie WB Private Investment Trust 3rd (Bond)
KDB Private Equity Securities Investment Trust WB 2nd (Bond)
Samsung Plus Private Investment Trust 13th
Hanwha Smart Private Trust 43rd (Bond)
Eugene Pride Private Trust 21st (Bond)
Meritz Prime Private Trust 42nd (Bond)
Woori Partner Plus Private Equity Securities 8th
Woori Partner Plus Private Equity Securities 9th
Hanwha Smart Private Trust 50th (Bond)
7) Details of special purpose entities excluded from consolidation for the year ended December 31, 2011 are as follows:
Special Purposed Entities
Woori Moa Conduit Co., Ltd.
Hyundai Glory 1st Co., Ltd.
KDB Capital 1st Co., Ltd.
Vivaldi HL 1st Co., Ltd.
Swan SF Co., Ltd.
KTB Smart 90 Private Security 2nd
Hanvit Open-End High Yield HV 1st
Mid-term D-2nd
Hanhwa Smart Private Security 19th
My Asset Private Security Investment Trust W-1st
Eugene Pride Private Investment Security 12th (Bond)
reasons
Expiration of the contract or liquidation stopped from the Group from
bearing the majority of the risk resulting from the operation of entities.
Disposal and repayment of beneficiary certificates
102
103
woori bank 2012 annUaL rEPorT
Special Purposed Entities
reasons
Consus Private Security Investment Trust 29th
Hi-Smart Private Security 1st
Woori Frontier Short-term Private 2nd
Woori Frontier Alpha Quant Private Equity 3rd
Meritz Prime Private Trust 1st
Yurie WB Private Security Investment Trust 2nd
KDB Private Security Investment Trust WB-1st
Samsung Plus Private Investment Trust 7th
Eugene Pride Private Security Investment Trust 14th (Bond)
Hanhwa Smart Private Security 33rd
Taurus 1st
Brain 3rd
Meritz Prime Private Trust 5th
Woori Partner Plus Private Equity Securities 5th
Prudential Quant Long-Short Private Trust 1st
Prudential Quant Long-Short Private Trust 2nd
Woori Partner Plus Private Security Investment Trust 6th
8) Summarized statements of financial position as of December 31, 2012 and December 31, 2011, respectively, and comprehensive
income statements for the year ended December 31, 2012 and 2011, respectively, of subsidiaries, whose financial information
are included on the consolidated financial statements, are as follows (Unit: korean won in millions):
Subsidiaries
assets
Liabilities
Equity
operating
income
net income
(loss)
Woori Credit Information Co., Ltd.
\
30,917 \
4,137 \
26,780 \
36,624 \
Woori America Bank
PT. Bank Woori Indonesia
Woori Global Market Asia Limited
1,078,995
662,720
181,104
948,637
503,895
130,798
Woori Bank China Limited
3,036,392
2,620,385
ZAO Woori Bank
Banco Woori Bank do Brasil
Korea BTL Infrastructure Fund
Woori Fund Service Co., Ltd.
Woori Bank Preservation Trust of principal
and interest
SPEs under consolidation
Beneficiary Certificates under consolidation
214,258
22,336
584,144
2,952
6,727
708,728
2,145,059
190,941
1,810
226
520
6,727
921,907
92,364
130,358
158,825
50,306
416,007
23,317
20,526
583,918
2,432
-
(213,179)
2,052,695
47,805
82,658
8,100
207,135
10,960
1,321
30,756
4,592
1,730
37,596
77,464
2,963
3,253
16,133
1,082
14,838
2,631
(424)
28,122
75
-
(44,819)
57,088
104
105
Subsidiaries
assets
Liabilities
Equity
operating
income
net income
(loss)
Woori Credit Information Co., Ltd.
\
30,148 \
3,811 \
26,337 \
34,739 \
Woori America Bank
PT. Bank Woori Indonesia
Woori Global Market Asia Limited
1,102,653
643,915
189,541
965,739
479,247
136,536
Woori Bank China Limited
2,995,451
2,562,582
ZAO Woori Bank
Korea BTL Infrastructure Fund
Woori Fund Service Co., Ltd.
Woori Bank Preservation Trust of principal
and interest
350,235
473,983
2,719
8,285
329,099
186
361
8,285
136,913
164,667
53,005
432,869
21,136
473,796
2,358
-
SPEs under consolidation
896,711
1,065,744
(169,034)
Beneficiary Certificates under consolidation
1,654,962
44,479
1,610,483
52,205
186,122
7,198
344,703
9,520
26,391
1,704
2,767
55,668
57,286
3,340
1,953
17,149
(8,776)
22,884
1,590
24,637
(596)
-
(10,522)
8,458
I
F
I
n
A
n
c
A
l
R
E
v
I
E
w
2. OPERATInG SEGMEnTS
The Group’s reporting segments comprise the following customers: consumer banking, corporate banking, investment banking, capital market, and
headquarters and others. The reportable segments are classified based on the target customers for whom the service is being provided.
Consumer banking
Corporate banking
Investment banking
Capital market
Headquarter and others
Scope of business
Loans/deposits and financial services for individual customer
Loans/deposits and export/import, financial services for corporations
Domestic/foreign investment, structured finance, M&A, equity & fund investment related
business, venture advisory related tasks, real estate SOC development practices, etc
Fund management, investment securities and derivatives business
Sector does not correspond to the above operating segments
The segment operating income, which differs from financial operating income, is evaluated regularly by the Group in deciding how to allocate resources
and in assessing performance. The Group’s income tax is not allocated to each segment because this is not directly attributable to the operating segments.
The details of assets and liabilities by each segment are as follows (Unit: Korean Won in millions):
December 31, 2012
Consumer
banking
Corporate
banking
investment
banking
Capital
market
Headquarters
and others
Sub-total
inter-segment
transaction
Total
Assets
Liabilities
\ 71,919,601 \ 84,989,581 \ 8,016,568 \ 20,548,977 \ 65,187,500 \ 250,662,227 \ (3,413,876) \ 247,248,351
41,262,437
129,294,513
111,792
18,346,591
38,460,860
227,476,193
1,206,264
228,682,457
104
105
woori bank 2012 annUaL rEPorT
Consumer
banking
Corporate
banking
investment
banking
Capital
market
Headquarters
and others
Sub-total
inter-segment
transaction
Total
Assets
Liabilities
\ 66,573,578 \ 92,128,495 \ 8,372,199 \ 21,961,041 \ 57,313,632 \ 246,348,945 \
(3,876,783) \ 242,472,162
66,410,452
99,911,272
94,973
13,594,388
41,031,547
221,042,632
3,303,390
224,346,022
December 31, 2011
The details of operating income by each segments are as follows (Unit: Korean Won in millions):
For the year ended December 31, 2012
Consumer
banking
Corporate
banking
investment
banking
Capital
market
Headquarters
and others
Sub-total
inter-segment
transaction
Total
Net interest income:
Interest income \ 4,090,920 \ 4,688,083 \
337,363 \
288,608 \ 1,750,083 \ 11,155,057 \
281,403 \ 11,436,460
Interest expense
(1,855,733)
(2,820,879)
(72)
(167,983)
(1,237,360)
(6,082,027)
257,521
(5,824,506)
Inter-segment
(134,749)
534,034
(331,460)
Sub-total
2,100,438
2,401,238
5,831
(32,769)
87,856
(35,055)
477,668
1
(1)
-
5,073,031
538,923
5,611,954
Non-interest income:
Non-interest
income
Non-interest
expense
Inter-segment
Sub-total
Other expenses:
Administrative
expenses
Provisions
Sub-total
Operating income
(loss)
687,246
972,849
340,024
5,759,911
2,254,114
10,014,144
(110,825)
9,903,319
(472,581)
(525,046)
(250,453)
(5,777,549)
(1,743,975)
(8,769,604)
(490,958)
(9,260,562)
13,573
228,238
20,515
468,318
-
-
89,571
(17,638)
(34,088)
476,051
-
-
-
1,244,540
(601,783)
642,757
(1,673,720)
(811,068)
(18,278)
(23,521)
(205,072)
(2,731,659)
4,019
(2,727,640)
(118,449)
(1,484,228)
(1,792,169)
(2,295,296)
(77,748)
(96,026)
(64,678)
(88,199)
(133,103)
(1,878,206)
50,092
(1,828,114)
(338,175)
(4,609,865)
54,111
(4,555,754)
\
536,507 \
574,260 \
(624) \
(17,981) \
615,544 \ 1,707,706 \
(8,749) \ 1,698,957
106
107
Consumer
banking
Corporate
banking
investment
banking
Capital
market
Headquarters
and others
Sub-total
inter-segment
transaction
Total
For the year ended December 31, 2011
Net interest income:
Interest income \ 4,049,332 \ 5,203,936 \
344,881 \
505,272 \ 1,584,108 \ 11,687,529 \
(28,271) \ 11,659,258
Interest expense
(1,810,688)
(3,147,929)
(11,136)
(180,297)
(1,413,599)
(6,563,649)
632,602
(5,931,047)
Inter-segment
63,958
692,552
(308,245)
(316,579)
(119,634)
12,052
Sub-total
2,302,602
2,748,559
25,500
8,396
50,875
5,135,932
(12,052)
592,279
-
5,728,211
I
F
I
n
A
n
c
A
l
R
E
v
I
E
w
Non-interest income:
Non-interest
income
Non-interest
expense
Inter-segment
Sub-total
Other expenses:
Administrative
expenses
Provisions
Sub-total
Operating income
(loss)
1,669,152
2,945,134
487,772
6,316,802
5,397,679
16,816,539
(383,218)
16,433,321
(1,420,772)
(2,528,459)
(480,901)
(6,205,221)
(4,556,095)
(15,191,448)
135,975
(15,055,473)
12,788
261,168
34,909
451,584
(33,698)
(26,827)
5,475
117,056
(19,186)
822,398
288
(288)
-
1,625,379
(247,531)
1,377,848
(1,600,340)
(749,681)
(20,086)
(20,311)
(58,904)
(2,449,322)
(100,038)
(2,549,360)
(146,632)
(707,900)
(1,746,972)
(1,457,581)
(366,505)
(386,591)
(6,159)
(565,486)
(1,792,682)
(170,829)
(1,963,511)
(26,470)
(624,390)
(4,242,004)
(270,867)
(4,512,871)
\
816,798 \ 1,742,562 \
(387,918) \
98,982 \
248,883 \ 2,519,307 \
73,881 \ 2,593,188
Information on financial products and services
The financial products of the Group are classified as interest, non-interest and other goods; however, since this classification has already been reflected
in the component of the operating segments above, revenue from external customers is not separately disclosed.
Information on geographical areas
Details of the geographical revenues from external customers and non-current assets are as follows (Unit: Korean Won in millions):
Domestic
Overseas
Total
revenues from external customers
non-current assets
For the year ended
December 31, 2012
For the year ended
December 31, 2011
December 31, 2012
December 31, 2011
\
\
20,785,391 \
27,257,696 \
3,359,216 \
554,388
834,883
31,898
21,339,779 \
28,092,579 \
3,391,114 \
3,188,702
30,441
3,219,143
Revenues from external customers consist of interest income and non-interest income. Non-current assets consist of investments in associates,
investment properties, premises and equipment, and intangible assets.
106
107
woori bank 2012 annUaL rEPorT
3. cASH AnD cASH EQUIvAlEnTS
(1) Details of cash and cash equivalents are as follows (Unit: korean won in millions):
Cash and checks
Foreign currencies
Demand deposits
Fixed deposits
Total
December 31, 2012
December 31, 2011
\
2,551,530 \
522,257
1,078,519
440,844
\
4,593,150 \
2,826,040
464,745
1,853,893
244,589
5,389,267
(2) Material transactions not involving cash inflows and outflows are as follows (Unit: korean won in millions):
Changes in investments in associates due to equity swap
\
75,290 \
Changes in other comprehensive income of investment in associates
Changes in other comprehensive income of overseas business translation
1,210
(74,111)
-
(28,651)
15,539
For the year ended
December 31, 2012
For the year ended
December 31, 2011
4. FInAncIAl ASSETS AT FvTPl
(1) Details of financial assets at FVTPL are as follows (Unit: korean won in millions):
December 31, 2012
December 31, 2011
Securities in local currency:
Korean treasury and government agencies
\
457,706 \
1,626,814
-
276,280
5,679
2,877,334
26,165
-
588,452
2,653,822
3,977
282,889
-
2,139,298
19,876
823
5,269,978
5,689,137
1,573,332
1,297,208
57,918
5,028
1,422,915
1,867,416
53,706
16,346
Financial institutions
Corporates
Equity securities
Beneficiary certificates
Commercial Paper (“CP”)
Loaned securities
Other securities
Sub-total
Derivatives instruments assets:
Interest rate derivatives
Currency derivatives
Equity derivatives
Other derivatives
108
109
Sub-total
Other financial assets (Cash Management Account (“CMA”) and CP)
Gold banking assets
Total
December 31, 2012
December 31, 2011
2,933,486
1,646,507
5,582
3,360,383
2,268,325
-
\
9,855,553 \
11,317,845
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(2) Structured notes of financial assets at FVTPL are as follows (Unit: korean won in millions):
Structured notes relating to credit risk:
Synthetic Collateralized Debt Obligation (“CDO”)
\
32,133 \
-
Credit risk of
underlying assets
December 31, 2012
Face value
Carrying value
Potential risk
Structured notes relating to credit risk:
Synthetic CDO
\
34,599 \
-
Credit risk of
underlying assets
December 31, 2011
Face value
Carrying value
Potential risk
5. AFS FInAncIAl ASSETS
(1) Details of aFS financial assets are as follows (Unit: korean won in millions):
December 31, 2012
December 31, 2011
AFS financial assets in local currency:
Debt securities:
Korean treasury and government agencies
\
2,365,203 \
5,503,457
2,330,567
316
10,199,543
444,653
759,145
238,055
2,478,265
3,994,503
2,390,187
369
8,863,324
877,036
747,675
252,002
2,451,465
3,511,812
Financial institutions
Corporates
Others
Sub-total
Equity securities:
Listed stock
Unlisted stock
Capital contributions
Beneficiary certificates
108
109
woori bank 2012 annUaL rEPorT
Sub-total
Sub-total
AFS financial assets in foreign currencies:
Debt securities
Equity securities
Sub-total
Loaned securities
Total
December 31, 2012
December 31, 2011
3,893,318
14,092,861
5,388,525
14,251,849
262,302
108,954
371,256
20,413
199,049
139,516
338,565
80,193
\
14,484,530 \
14,670,607
(2) Details of unrealized gains or losses on aFS financial assets are as follows (Unit: korean won in millions):
AFS financial assets in local currency:
Debt securities:
Korean treasury and government
agencies
\
December 31, 2012
amortized
cost
Gross
unrealized gains
Gross
unrealized losses
Fair
value
2,345,127 \
21,543 \
(1,467) \
2,365,203
5,488,669
2,315,031
316
10,149,143
412,834
584,008
255,448
2,441,735
3,694,025
13,843,168
262,257
85,308
347,565
19,930
16,146
30,286
-
67,975
32,255
184,430
2,416
14,959
234,060
302,035
260
30,725
30,985
483
(1,358)
(14,750)
-
(17,575)
(436)
(9,293)
(19,809)
(5,229)
(34,767)
(52,342)
(215)
(7,079)
(7,294)
-
5,503,457
2,330,567
316
10,199,543
444,653
759,145
238,055
2,451,465
3,893,318
14,092,861
262,302
108,954
371,256
20,413
\
14,210,663 \
333,503 \
(59,636) \
14,484,530
Financial institutions
Corporates
Others
Sub-total
Equity securities:
Listed stock
Unlisted stock
Capital contributions
Beneficiary certificates
Sub-total
Sub-total
AFS financial assets in foreign
currencies:
Debt securities
Equity securities
Sub-total
Loaned securities
Total
110
111
AFS financial assets in local currency:
Debt securities:
Korean treasury and government
agencies
\
December 31, 2011
amortized
cost
Gross
unrealized gains
Gross
unrealized losses
Fair
value
2,447,068 \
31,632 \
(435) \
2,478,265
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Financial institutions
Corporates
Others
Sub-total
Equity securities:
Listed stock
Unlisted stock
Capital contributions
Beneficiary certificates
Sub-total
Sub-total
AFS financial assets in foreign
currencies:
Debt securities
Equity securities
Sub-total
Loaned securities
Total
3,983,885
2,384,008
369
8,815,330
453,618
597,077
252,675
3,443,689
4,747,059
13,562,389
199,079
111,639
310,718
79,990
11,145
17,271
-
60,048
424,510
154,592
6,219
70,705
656,026
716,074
117
32,498
32,615
203
(527)
(11,092)
-
(12,054)
(1,092)
(3,994)
(6,892)
(2,582)
(14,560)
(26,614)
(147)
(4,621)
(4,768)
-
3,994,503
2,390,187
369
8,863,324
877,036
747,675
252,002
3,511,812
5,388,525
14,251,849
199,049
139,516
338,565
80,193
\
13,953,097 \
748,892 \
(31,382) \
14,670,607
(3) Structured notes of aFS financial assets are as follows (Unit: korean won in millions):
Face value
Carrying value
Potential risk
December 31, 2012
Structured notes relating to stock:
Convertible bonds
\
- \
Structured notes relating to credit risk:
Cash CDO
Synthetic CDO
Total
140,112
21,422
\
161,534 \
Decrease in related stock price
Credit risk of underlying assets
Credit risk of underlying assets
-
-
-
-
110
111
woori bank 2012 annUaL rEPorT
Face value
Carrying value
Potential risk
December 31, 2011
Structured notes relating to stock:
Convertible bonds
\
11,094 \
Structured notes relating to credit risk:
Cash CDO
Synthetic CDO
Total
150,865
23,066
\
185,025 \
Decrease in related stock price
Credit risk of underlying assets
Credit risk of underlying assets
-
-
-
-
6. HTM FInAncIAl ASSETS
(1) Details of HTM financial assets are as follows (Unit: korean won in millions):
December 31, 2012
December 31, 2011
In local currency:
Korean treasury and government agencies
\
5,527,699 \
3,242,394
5,534,920
14,305,013
5,131,953
5,193,115
4,972,391
15,297,459
36,493
102,966
\
14,341,506 \
15,400,425
2) Details of unrealized gains or losses on HTM financial assets are as follows (Unit: korean won in millions):
In local currency:
Korean treasury and government
agencies
\
December 31, 2012
amortized
cost
Gross
unrealized gains
Gross
unrealized losses
Fair
value
5,527,699 \
99,011 \
(5,691) \
5,621,019
3,242,394
5,534,920
14,305,013
14,190
96,855
210,056
(300)
(3,139)
(9,130)
3,256,284
5,628,636
14,505,939
36,493
-
-
36,493
\
14,341,506 \
210,056 \
(9,130) \
14,542,432
Financial institutions
Corporates
Sub-total
In foreign currencies:
Debt securities
Total
Financial institutions
Corporates
Sub-total
In foreign currencies:
Debt securities
Total
112
113
In local currency:
Korean treasury and government
agencies
\
Financial institutions
Corporates
Sub-total
In foreign currencies:
Debt securities
Total
December 31, 2011
amortized
cost
Gross
unrealized gains
Gross
unrealized losses
Fair
value
5,131,953 \
61,079 \
(1,382) \
5,191,650
5,193,115
4,972,391
15,297,459
11,249
38,215
110,543
(414)
(4,256)
(6,052)
5,203,950
5,006,350
15,401,950
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102,966
-
-
102,966
\
15,400,425 \
110,543 \
(6,052) \
15,504,916
7. lOAnS AnD REcEIvABlES
(1) Details of loans and receivables are as follows (Unit: korean won in millions):
Due from banks
Loans
Other loan and receivables
Total
(2) Details of due from banks are as follows (Unit: korean won in millions):
Due from banks in local currency:
Due from the BOK
Due from depository institutions
Due from non-depository financial institutions
Due from Korea Exchange
Others
Provisions for credit losses
Sub-total
Due from banks in foreign currencies:
Due from banks on demand in other financial institutions
Due from banks on time deposit
Others
Provisions for credit losses
Sub-total
Total
December 31, 2012
December 31, 2011
\
10,087,615 \
11,860,545
175,858,518
14,102,973
171,767,085
8,281,402
\
200,049,106 \
191,909,032
December 31, 2012
December 31, 2011
\
8,624,062 \
10,166,149
4,216
21,426
167
11,681
(1,943)
14,972
7,975
5,659
12,838
(2,363)
8,659,609
10,205,230
610,699
408,417
410,571
(1,681)
1,428,006
\
10,087,615 \
618,766
439,266
599,351
(2,068)
1,655,315
11,860,545
112
113
woori bank 2012 annUaL rEPorT
(3) Details of restricted due from banks are as follows (Unit: korean won in millions):
Financial institution
In local currency:
BOK
Korea Exchange
Samsung Securities and others
Others
Sub-total
In foreign currencies:
BOK
State Bank of Vietnam and others
Central bank of China and others
Central bank of Bangladesh and others
Macquarie bank
Sub-total
Total
December 31, 2012
December 31, 2011
reasons
\
8,624,062 \
10,166,148
Reverse deposits on BOK Act and others
250
8,105
13
250
Joint compensation fund for loss incurred
7,617
Forward margin and others
13
Pledged commission income
8,632,430
10,174,028
458,990
43,397
361,845
62,762
-
926,994
321,959
Reverse deposits on BOK Act and others
66,851
Reserve deposits in foreign branches and
others
499,348
Reserve deposits in foreign subsidiary and
others
66,771
Installation deposits of financial institution
and others
512
Collateral for overseas future trading
955,441
\
9,559,424 \
11,129,469
(4) Details of loans are as follows (Unit: korean won in millions):
Loans in local currency
Loans in foreign currencies
Domestic banker’s usance
Credit card accounts
Bills bought in foreign currencies
Bills bought in local currency
Factoring receivables
Advances for customers
Privately placed bonds
Loans for debt- equity swap
Backed loans
Call loans
Bonds purchased under repurchase agreements
Other loans
Deferred loan origination fees and costs
114
115
December 31, 2012
December 31, 2011
\
144,644,933 \
141,733,063
9,505,325
4,892,884
4,117,401
4,128,832
551,901
156,246
125,841
768,557
498
315,121
5,217,329
4,130,934
42,147
229,311
12,024,482
5,086,592
4,194,926
5,161,871
481,071
206,684
33,809
1,332,594
498
607,598
3,099,061
592,000
48,786
154,131
Present value discount
Fair value hedging adjustment
Provision for credit losses
Total
December 31, 2012
December 31, 2011
(20,772)
248
(22,297)
404
(2,948,218)
(2,968,188)
\
175,858,518 \
171,767,085
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(5) Details of other receivables are as follows (Unit: korean won in millions):
December 31, 2012
December 31, 2011
Cash Management Account (“CMA”)
\
- \
Accounts receivables
Accrued income
Guarantee deposits
Other assets(*)
Present value discount of other assets
Provisions for credit losses
Total
11,432,796
951,616
1,003,640
1,071,728
(53,231)
(303,576)
\
14,102,973 \
20,000
6,149,759
973,880
965,033
608,873
(57,362)
(378,781)
8,281,402
(*) As of December 31, 2012, in accordance with the creditor financial institutions committee agreement the Group concluded, other assets include \ 91,308 million of receivables from
other creditor financial institutions which is accounted for as other operating income. On the other hand, as of December 31, 2012, \ 94,205 million of other financial liabilities to
be paid by the Group is accounted for as other operating expenses (Notes 25 and 40).
(6) Changes in provisions for credit losses on loans and receivables are as follows (Unit: korean won in millions):
For the year ended December 31, 2012
Loans
Consumers
Corporates
Credit cards
others
Total
Beginning balance
\
(191,447) \
(2,657,257) \
(119,484) \
(383,212) \
(3,351,400)
Provisions for credit losses
(171,031)
(1,462,452)
(143,965)
(21,644)
(1,799,092)
Recoveries of written-off loans
Charge-off
Sales of loans and receivables and others
Unwinding effect
Others
Ending balance
(40,997)
122,316
8,522
13,725
28
(145,140)
1,514,708
120,764
71,754
(13,538)
(31,498)
175,984
-
311
479
(32)
843
963
296
95,586
(217,667)
1,813,851
130,249
86,086
82,555
\
(258,884) \
(2,517,161) \
(118,173) \
(307,200) \
(3,255,418)
114
115
woori bank 2012 annUaL rEPorT
For the year ended December 31, 2011
Loans
Consumers
Corporates
Credit cards
others
Total
Beginning balance
\
(171,623) \
(3,607,045) \
(113,206) \
(279,396) \
(4,171,270)
Provisions for credit losses
Recoveries of written-off loans
Charge-off
Sales of loans and receivables and others
Unwinding effect
Others
Ending balance
(82,897)
(26,677)
74,271
8,376
7,368
(265)
(1,423,443)
(108,995)
(95,318)
(1,710,653)
(1,531)
1,886,423
474,404
124,876
(110,941)
(31,412)
133,542
-
75
512
-
618
1,296
6,722
(59,620)
2,094,854
484,076
139,041
(17,134)
(127,828)
\
(191,447) \
(2,657,257) \
(119,484) \
(383,212) \
(3,351,400)
(7) Changes in deferred loan origination fees and costs are as follows (Unit: korean won in millions):
Deferred loan origination fees
Deferred loan origination costs
Deferred loan origination fees
Deferred loan origination costs
\
\
\
\
For the year ended December 31, 2012
balance at
January 1, 2012
increase
Decrease
balance at
December 31, 2012
(48,563) \
(22,396) \
34,739 \
202,694
181,999
(119,162)
154,131 \
159,603 \
(84,423) \
(36,220)
265,531
229,311
For the year ended December 31, 2011
balance at
January 1, 2011
increase
Decrease
balance at
December 31, 2011
(62,619) \
(38,856) \
52,912 \
132,985
144,640
(74,931)
70,366 \
105,784 \
(22,019) \
(48,563)
202,694
154,131
8. THE FAIR vAlUE OF FInAncIAl ASSETS AnD lIABIlITIES
The Group classified and discloses fair value of the financial instruments into the following three-level hierarchy:
· Level 1: fair value measurements are those derived from quoted prices (unadjusted) in active markets for identical assets or liabilities.
· Level 2: fair value measurements are those derived from inputs other than quoted prices included within Level 1 that are observable for the assets
or liabilities, either directly (i.e. prices) or indirectly (i.e. derived from prices).
· Level 3: fair value measurements are those derived from valuation technique that include inputs for the assets or liabilities that are not based on
observable market data (unobservable inputs).
116
117
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(1) Fair value hierarchy of financial assets and liabilities measured at fair value is as follows (korean won in millions):
December 31, 2012
Level 1
Level 2
Level 3
Total
Financial assets:
Financial assets at FVTPL:
Securities in local currency:
Korean treasury and
government agencies
Financial institutions
Equity securities
Beneficiary certificates
CP
Loaned securities
Sub-total
Derivatives instruments assets (*):
Interest rate derivatives
Currency derivatives
Equity derivatives
Other derivatives
Sub-total
Other financial assets (CMA CP)
Gold banking assets
Total
AFS financial assets:
Securities in local currency:
Debt securities:
Korean treasury and
government agencies
Financial institutions
Corporates
Others
Sub-total
Equity securities:
Listed stock
Unlisted stock
Capital contributions
Beneficiary certificates
Sub-total
Securities in local currency sub-total
\
457,369 \
337 \
- \
457,706
-
276,280
-
-
26,165
759,814
-
-
319
-
319
-
5,582
1,626,814
-
5,679
2,877,334
-
4,510,164
1,840,802
1,299,152
8,393
5,028
3,153,375
1,646,507
-
-
-
-
-
-
-
-
-
49,206
-
49,206
-
-
1,626,814
276,280
5,679
2,877,334
26,165
5,269,978
1,840,802
1,299,152
57,918
5,028
3,202,900
1,646,507
5,582
\
765,715 \
9,310,046 \
49,206 \
10,124,967
\
2,361,133 \
4,070 \
- \
2,365,203
-
-
-
2,361,133
347,648
-
-
-
347,648
2,708,781
5,503,457
2,330,567
316
7,838,410
-
-
-
2,295,203
2,295,203
10,133,613
-
-
-
-
97,005
759,145
238,055
156,262
1,250,467
1,250,467
5,503,457
2,330,567
316
10,199,543
444,653
759,145
238,055
2,451,465
3,893,318
14,092,861
116
117
woori bank 2012 annUaL rEPorT
Securities in foreign currencies:
Debt securities
Equity securities
Sub-total
Loaned securities
Total
Financial liabilities:
Financial liabilities at trading:
Gold banking liabilities
Derivatives instruments liabilities (*):
Interest rate derivatives
Currency derivatives
Equity derivatives
Other derivatives
Sub-total
Financial liability designated at FVTPL:
Debentures in local currency
Debentures in foreign currencies
Sub-total
Total
Financial assets:
Financial assets held for trading:
Securities in local currency:
Korean treasury and
government agencies
Financial institutions
Corporates
Equity securities
CP
Loaned securities
Other securities
Sub-total
118
119
Financial liabilities at trading-sub-total
5,582
December 31, 2012
Level 1
Level 2
Level 3
Total
\
19,143 \
243,159 \
- \
1,541
20,684
20,413
-
243,159
-
107,413
107,413
-
262,302
108,954
371,256
20,413
\
2,749,878 \
10,376,772 \
1,357,880 \
14,484,530
5,582
-
-
-
-
-
-
-
-
-
1,626,853
1,167,900
35,905
5,323
2,835,981
2,835,981
227,920
87,534
315,454
-
58
-
335,448
-
335,506
335,506
-
-
-
5,582
1,626,911
1,167,900
371,353
5,323
3,171,487
3,177,069
227,920
87,534
315,454
\
5,582 \
3,151,435 \
335,506 \
3,492,523
December 31, 2011
Level 1
Level 2
Level 3
Total
\
588,094 \
358 \
- \
588,452
-
-
282,889
-
19,876
-
890,859
2,653,822
3,977
-
2,139,298
-
823
4,798,278
-
-
-
-
-
-
-
2,653,822
3,977
282,889
2,139,298
19,876
823
5,689,137
December 31, 2011
Level 1
Level 2
Level 3
Total
-
-
644
-
644
-
1,749,328
1,867,416
21,871
16,346
3,654,961
2,268,325
-
-
31,191
-
31,191
-
1,749,328
1,867,416
53,706
16,346
3,686,796
2,268,325
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\
891,503 \
10,721,564 \
31,191 \
11,644,258
Derivatives instruments assets (*):
Interest rate derivatives
Currency derivatives
Equity derivatives
Other derivatives
Sub-total
Other financial assets (CMA CP)
Total
AFS financial assets:
Securities in local currency:
Debt securities:
Korean treasury and government
agencies
\
Financial institutions
Corporates
Others
Sub-total
Equity securities:
Listed stock
Unlisted stock
Capital contributions
Beneficiary certificates
Sub-total
Securities in local currency -sub-total
Securities in foreign currencies:
Debt securities
Equity securities
Sub-total
Loaned securities
Total
Financial liabilities:
Financial liabilities at trading:
2,468,525 \
9,740 \
- \
2,478,265
-
-
-
2,468,525
399,401
-
-
-
399,401
2,867,926
9,116
3,449
12,565
80,193
3,994,503
2,390,187
369
6,394,799
-
-
-
3,298,460
3,298,460
9,693,259
189,933
-
189,933
-
-
-
-
-
477,635
747,675
252,002
213,352
1,690,664
1,690,664
-
136,067
136,067
-
3,994,503
2,390,187
369
8,863,324
877,036
747,675
252,002
3,511,812
5,388,525
14,251,849
199,049
139,516
338,565
80,193
\
2,960,684 \
9,883,192 \
1,826,731 \
14,670,607
118
119
Borrowings (Securities in short position) \
8,105 \
- \
- \
8,105
Derivatives instruments liabilities (*):
Interest rate derivatives
Currency derivatives
-
-
1,523,437
1,336,230
43
-
1,523,480
1,336,230
woori bank 2012 annUaL rEPorT
Equity derivatives
Other derivatives
Sub-total
Financial liabilities at trading -sub-total
Financial liability designated at FVTPL:
Debentures in local currency
Debentures in foreign currencies
Sub-total
Total
Level 1
80
-
80
8,185
-
-
-
December 31, 2011
Level 2
44,466
16,972
2,921,105
2,921,105
226,433
95,775
322,208
Level 3
283,607
-
283,650
283,650
-
-
-
Total
328,153
16,972
3,204,835
3,212,940
226,433
95,775
322,208
\
8,185 \
3,243,313 \
283,650 \
3,535,148
(*) Derivative assets and liabilities held for trading and hedging are also included in derivative assets and liabilities.
The amounts of equity securities carried at cost which do not have a quoted market price in an active market and cannot be measured reliably at fair
value are \36,864 million and \92,891 million as of December 31, 2012 and December 31, 2011, respectively. These securities are unmarketable
or unquoted equity instruments which were invested to special purposed entity such as asset securitization specialty and are included in level 3
of unlisted stock and capital contributions. They are carried at cost because it is practically difficult to get financial information for valuation, or
probabilities and range of cash flows of the unlisted equity securities cannot be measured reliably. The Group has no plan to sell these financial
instruments in near future.
For the years ended December 31, 2012 and 2011, \11,752 million and \5,484 million respectively, were derecognized due to disposal. The related
gains are \5,384 million and \139 million for the years ended December 31, 2012 and December 31, 2011 respectively.
Financial assets and liabilities at FVTPL, AFS financial assets, held-for-trading financial assets and liabilities and derivative assets and liabilities are
recognized at fair value. Fair value is the amount for which an asset could be exchanged, or a liability settled, between knowledgeable, willing parties
in an arm’s length transaction.
Financial instruments are measured at fair value using a quoted market price in active markets. If there is no active market for a financial instrument,
the Group establishes the fair value using valuation techniques. Fair value measurement methods for each type of financial instruments are as follows:
Financial assets and liabilities at FVTPL
Financial assets and liabilities at FVTPL are measured at fair value using a price quoted
by a third party, such as a pricing service, or using valuation techniques.
Fair value measurement technique
Held-for-trading financial assets and liabilities
and AFS financial assets
HTM financial assets
Loans and receivables
120
121
Held-for-trading financial assets and liabilities and AFS financial assets are measured at
fair value using a quoted market price in an active market. If a quoted market price is not
available, they are measured by using a price quoted by a third party, such as a pricing
service or using valuation techniques.
HTM financial assets are measured by using a price quoted by a third party, such as a
pricing service.
Loans and receivables are measured by discounting expected future cash flows at a
market interest rate of other loans with similar condition.
Derivative assets and liabilities
Deposits due to customers and borrowings
Debentures
Fair value measurement technique
Derivatives are measured at fair value using a quoted market price in an active market.
If a quoted market price is not available, they are measured at fair value using valuation
techniques.
Deposits due to customers and borrowings are measured at fair value using discounting
expected future cash flows at the interest rate of bond issued by the Group. However,
if the carrying value is not significantly different from the fair value, it assumes that the
carrying value is equal to the fair value.
The fair value of issued bond shall be measured at the present value of cash flows
using the swap interest rates. For some financial instruments, the fair value estimated
by specialists, the third party, can be used.
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(2) Changes in financial assets and liabilities classified into Level 3 are as follows (Unit: korean won in millions):
Transfer into/out of level 3 for the year ended December 31, 2012
January 1,
2012
net
income
other
comprehensive
income (loss)
Purchases/
issuances
Disposals/
Settlements
Transfer to or
from level 3
December 31,
2012
Financial assets:
Financial assets at FVTPL:
Financial assets held for
trading
Derivatives assets:
Equity derivatives
\
31,191 \
18,015 \
- \
- \
- \
- \
49,206
AFS financial assets:
Listed stock in local
currency
Unlisted stock in local
currency
Capital contributions in
local currency
Equity securities in
foreign currencies
477,635
367,269
(370,282)
87,924
(466,199)
658
97,005
747,675
(138)
24,539
29,208
(42,139)
252,002
(2,323)
(16,720)
31,484
(26,388)
136,067
(6,771)
(4,167)
5,224
(22,940)
-
-
-
759,145
238,055
107,413
Beneficiary certificates
213,352
74,463
(38,521)
14,137
(111,887)
4,718
156,262
Sub-total
\
1,826,731 \
432,500 \
(405,151) \
167,977 \
(669,553) \
5,376 \
1,357,880
Financial liabilities:
Financial liabilities at
FVTPL:
Derivative liabilities:
Interest rate derivatives \
43 \
232 \
Equity derivatives
283,607
26,325
- \
-
- \
(217) \
84,548
(59,032)
Sub-total
\
283,650 \
26,557 \
- \
84,548 \
(59,249) \
- \
-
- \
58
335,448
335,506
Out of the amounts recognized in net income for the year ended December 31, 2012, the net loss of \61,608 million, which is included in gain or
loss on financial instruments at fair value through profit or loss and gain or loss on available-for-sale financial assets in the comprehensive income
statements, is included in profit or loss for financial instrument held as of December 31, 2012.
120
121
Credit derivatives
Sub-total
AFS financial assets:
Listed stock in local
currency
Unlisted stock in local
currency
Capital contributions in
local currency
Equity securities in
foreign currencies
woori bank 2012 annUaL rEPorT
Transfer into/out of level 3 for the year ended December 31, 2011
January 1,
2011
net
income
other
comprehensive
income (loss)
Purchases/
issuances
Disposals/
Settlements
Transfer to or
from level 3
December 31,
2011
Financial assets:
Financial assets at FVTPL:
Financial assets held for
trading:
Derivatives assets:
Equity derivatives
\
4,778 \
6,267 \
- \
22,915 \
(2,769) \
- \
31,191
-
4,778
46
6,313
-
-
-
22,915
(46)
(2,815)
1,074,958
915,643
(479,974)
6,767
(1,039,759)
-
-
-
-
31,191
477,635
640,966
15,115
23,577
136,645
(58,558)
(10,070)
747,675
209,976
1,352
15,696
83,536
(58,558)
138,628
(10,071)
13,270
6,978
(12,738)
Beneficiary certificates
164,774
(477)
6,120
23,182
(927)
2,229,302
921,562
(421,311)
257,108
(1,170,540)
Sub-total
Financial liabilities:
Financial liabilities at
FVTPL:
Derivative liabilities:
-
-
20,680
10,610
252,002
136,067
213,352
1,826,731
Interest rate derivatives
Equity derivatives
Credit derivatives
-
311,631
1,600
24
(51,281)
(2,532)
-
-
-
20
(1)
213,332
(190,075)
-
932
-
-
-
43
283,607
-
Sub-total
\
313,231 \
(53,789) \
- \
213,352 \
(189,144) \
- \
283,650
Out of the amounts recognized in net income for the six month ended December 31, 2011, amounts related to assets and liabilities that the Group
currently holds are the net loss of \20,254 million, which is included in gain or loss on financial instruments at fair value through profit or loss and
gain or loss on available-for-sale financial assets in the comprehensive income statements, is included in profit or loss for financial instrument held as
of December 31, 2011.
(3) The Group performed the sensitivity analysis for the level 3 financial instruments which fair value would be measured
differently upon reasonably possible alternative assumptions. The Group classified the effect from changes upon the alternative
assumptions into favorable effect and unfavorable effect and presented the most favorable effect or the most unfavorable
effect in the table hereunder. based on the types of the level 3 financial instruments, the changes upon the assumptions would
affect either net income (loss) or other comprehensive income (loss). as such, the changes in the assumptions to measure fair
value of equity derivatives and interest rate derivatives would affect current performance. on the other hand, the changes in
the assumption for equity securities, equity investments, and beneficiary certificates would affect other comprehensive income.
122
123
The following table shows the sensitivity analysis to disclose the effect of reasonably possible alternative assumptions on the fair value of a level 3
financial instruments for the year ended December 31, 2012 (Unit: Korean Won in millions):
For the year ended December 31, 2012
net income (loss)
other comprehensive income (loss)
Favorable
Unfavorable
Favorable
Unfavorable
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Financial assets:
Financial assets held for trading:
Derivatives instruments assets (*1) \
9,241 \
(9,083) \
- \
-
Financial assets designed at FVTPL:
AFS Financial Assets:
Equity securities (*2)
Beneficiary certificates (*3)
Total
Financial liabilities:
Financial liabilities held for trading:
-
-
-
-
9,241
(9,083)
116,488
1,953
118,441
(47,998)
(1,896)
(49,894)
Derivative liabilities (*1)
\
9,450 \
(9,843) \
- \
-
(*1) Fair value changes of equity derivatives and financial assets designed at FVTPL are calculated by increasing or decreasing historical fluctuation rate of stock price and correlation by
10%. The historical fluctuation rate of stock price and correlation are major unobservable variables.
(*2) Fair value changes of equity securities are calculated by increasing or decreasing growth rate (0~1%) and discount rate (-1~1%) or liquidation value (-1~1%) and discount rate
(-1~1%). The growth rate, discount rate, and liquidation value are major unobservable variables.
(*3) Fair value changes of beneficiary certificates are calculated by increasing or decreasing price fluctuation of trust property and discount rate by 1%, respectively. The price fluctuation
of trust property and discount rate are major unobservable variables.
(4) Fair value and carrying amount of financial assets and liabilities that are recorded at amortized cost are as follows (Unit: korean
won in millions):
Financial assets:
HTM financial assets
Loans and receivables
Financial liabilities:
Deposits due to customers
Borrowings
Debentures
Other financial liabilities
December 31, 2012
Fair value
Carrying amount
\
14,542,432 \
14,341,506
201,980,659
200,049,106
168,091,771
168,007,679
17,478,699
18,875,761
20,721,298
17,445,898
17,841,978
20,721,110
122
123
woori bank 2012 annUaL rEPorT
Financial assets:
HTM financial assets
Loans and receivables
Financial liabilities:
Deposits due to customers
Borrowings
Debentures
Other financial liabilities
December 31, 2011
Fair value
Carrying amount
\
15,504,916 \
15,400,425
193,429,738
191,909,032
164,044,745
164,092,476
19,109,619
20,094,790
16,347,046
19,174,642
19,811,813
16,346,969
9. TRAnSFER OF FInAncIAl InSTRUMEnTS
The Group derecognized the transferred loans in the consolidated financial statements but has continuing participation in them. Nature of participation,
book value and fair value of loans and maximum exposure of losses incurred from the continuous participation are as follows;
Type of continuous involvement
book value of
continuous
participation
Fair value of
continuous
participation
Maximum
exposure on loss
KAMCO tenth Asset Securitization
Specialty (“KAMCO specialty”)
Acquisition of subordinated bonds
issued by KAMCOspecialty
Conditional disposal of loans to
KAMCO
Guarantee against loss on
transferred assets by theGroup (*1)
1,746
-
1,930
-
1,746
709
(*1) The transferred assets are not settled yet as therefore the cash flow upon the settlement are not determinable as of December 31, 2012 The maximum exposure on loss presents the
carrying amounts of assets at the date when they were transferred. The Group derecognized the transferred assets although the Group retains substantially all such risks and rewards
since these assets were transferred before the date of the transition to K-IFRS.
In addition, Financial- instruments such as bond sold under repurchase agreements and loaned securities which is not eliminated entirely are described
in Note 19.
10. InvESTMEnTS In ASSOcIATES
(1) investments in associates are as follows (Unit: korean won in millions):
investee
Location
Capital Main business
December 31, 2012
number of
Shares owned
Percentage
of ownership
(%)
Financial
statements
as of
Kumho Tires Co., Ltd. (*1) (*2)
Korea
\
631,300 Manufacturing
22,514,800
17.8 December. 31
Korea
421,000
Securities investment
90,297,987,131
21.4 December. 31
Korea
Korea
500
Freight & staffing
184,200
Securities investment
4,704
53,286
4.9 november. 30
28.9 December. 31
Woori Blackstone Korea
Opportunity Private Equity
Fund 1(*3)
Woori Service Networks
Co., Ltd. (*4) (*6)
Woori Private Equity Fund
124
125
investee
Location
Capital Main business
December 31, 2012
number of
Shares owned
Percentage
of ownership
(%)
Financial
statements
as of
Korea Credit Bureau Co., Ltd.
(*4)
Korea Finance Security Co., Ltd.
(*4) (*6)
United PF 1st Corporate
Financial Stability (*4)
LIG E&C Co., Ltd.
Hyunjin Co., Ltd.
Chin Hung International Inc.
(*2) (*6)
Pi city co., Ltd
Orient Shipyard Co., Ltd
Korea
Korea
Korea
Korea
Korea
Korea
Korea
Korea
10,000
Credit information
144,000
7.2 December. 31
6,000
Security service
183,870
15.3 november. 30
1,081,400
Securities investment
190,650
18.0 December. 31
16,500
Construction
38,400
Construction
755,946
1,667,600
23.2 -
21.7 -
225,100
Construction
125,052,000
27.8 november. 30
20,600
Construction
2,300
Shipbuilding Industry
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Phoenix Digital Tech Co., Ltd (*5)
Korea
2,000 Manufacturing
Poong Lim Industrial Co., Ltd
CNK Co.,Ltd
Korea
Korea
67,500
Construction
300 Manufacturing
investee
Kumho Tires Co., Ltd. (*1) (*2)
Woori Blackstone Korea Opportunity Private Equity Fund 1st(*3)
Woori Service Networks Co., Ltd. (*4) (*6)
Woori Private Equity Fund
Korea Credit Bureau Co., Ltd. (*4)
Korea Finance Security Co., Ltd. (*4) (*6)
United PF 1st Corporate Financial Stability (*4)
LIG E&C Co., Ltd.
Hyunjin Co., Ltd.
871,631
465,050
73,160
4,316,176
74,261
21.1 -
23.0 -
18.3 December. 31
31.6 -
30.8 -
December 31, 2011
number of
Shares owned
Percentage
of ownership
(%)
Financial
statements
as of
22,514,800
21.2 December. 31
75,400
4,704
64,508
144,000
183,870
148,000
755,946
1,667,600
21.4 December. 31
4.9 December. 31
28.9 December. 31
7.2 December. 31
15.3 December. 31
18.5 December. 31
23.2 -
21.7 -
124
125
The Group acquired 755,946 shares (equity: 23.2%) of LIG E&C Co., Ltd., 1,667,600 shares (equity: 21.7%) of Hyunjin Co. Ltd. for the year ended
December 31, 2011 and 871,631 shares (equity: 21.1%) of Pi City Co. Ltd., 465,050 shares (equity: 23.0%) of Orient Shipyard Co., Ltd. and 74,261
shares (equity : 30.8%) of CNK Co.,Ltd. for the year December 31, 2012 by using debt to equity swap to reduce debts being written off. There was
no investment as of December 31, 2011 and December 31, 2012. In addition, the Group holds 125,052,000 shares ownership: 27.8%) of Chin Hung
International Inc. 73,160 shares(ownership : 18.3%) of Phoenix Digital Tech Co., Ltd and 4,316,126 shares(ownership : 31.6%) of Poong Lim Industrial
Co., Ltd by using debt to equity swap for the year as of December 31, 2012.
woori bank 2012 annUaL rEPorT
(*1) The Group has significant influence on Kumho Tire Co., Inc. because it has potential voting rights which are estimated about 20.7% when exercised.
(*2) Besides Kumho Tire Co., Ltd. and Chin Hung International Inc., there are no other investments in associates for which there are published price quotations. The market price per
share of Kumho Tire Co., Ltd. as of December 31, 2012 and December 31, 2011. is \13,000 and \10,400, respectively and the market price per share of Chin Hung International
Inc. as of December 31, 2012 is \648, respectively.
(*3) As a result of stock split, the par value per share was decreased from \1,000,000 to \1 and the total number of outstanding shares is increased for the year ended December 31, 2012.
(*4) The Group can participate in decision making process and has the significant influence over the financial and operating policy decisions of Korea Credit Bureau Co., Ltd. and
United PF 1st Corporate Financial Stability by business relationship. And, the majority of the important transactions of Korea Finance Security and Woori Service Networks Co., Ltd.
are mainly arranged with the Group.
(*5) The Group has a significant influence on Phoenix Digital Tech Co., Ltd. because it has voting rights about 25.1%.
(*6) The fiscal year of the associate under equity method ends November 30 of each year. Any significant transactions or events that occurred between November 31, 2012 to
December 31, 2012, the reporting period end date of investment company were appropriately reflected.
(2) Excluded entity from associates, although it’s percentage of ownership is higher than 20% as of December 31, 2012, is as follows:
associate
Vogo 2-2 Special Purpose Entity (*)
number of shares owned
Percentage of ownership
24,187,282,362
34.6 %
(*) The entity is excluded from the associates because substantially the Group has no significant influence over the investee company although it’s percentage of ownership on common
share is higher than 20%.
(3) Changes in carrying value of investments in associates accounted for using the equity method are as follows (Unit: korean won
in millions):
investee
acquisition
cost
January 1,
2012
Gain (loss)
on valuation
acquisition
Disposition
and others
Dividends
Capital
other
changes
December
31, 2012
Kumho Tires Co., Inc. \ 113,204 \ 111,357 \
16,647 \
- \
- \
- \
3,323 \
24,702 \ 156,029
For the year ended December 31, 2012
Woori
Blackstone Korea
Opportunity Private
Equity Fund 1
Woori Service
Networks Co., Ltd.
Woori Private
Equity Fund
Korea Credit
Bureau Co., Ltd.
Korea Finance
Security Co., Ltd.
United PF 1st
Corporate Financial
Stability
Chin Hung
International Inc.
Phoenix Digital Tech
Co., Ltd.
Poong Lim Industrial
Co., Ltd.
90,298
76,828
9,883
16,301
(1,403)
(2,484)
24
98
38
53,286
32,475
(7,286)
3,600
3,012
758
3,468
283
831
-
-
-
-
191,617
149,099
8,815
43,617
60,275
538
14,477
-
-
-
(4,103)
60,275
2,319
538
-
14,477
-
(7)
(11,222)
-
-
-
-
-
-
-
-
(55)
-
-
-
-
-
-
1,184
(264)
-
-
-
-
-
-
-
99,125
129
15,151
3,031
4,244
(167)
201,364
51
-
56,223
(2,698)
400
559
-
-
14,477
Total
\ 528,077 \ 376,337 \
27,427 \ 135,208 \ (12,625) \
(2,546) \
1,596 \
24,935 \ 550,332
126
127
investee
acquisition
cost
January 1,
2011
Gain (loss)
on valuation
acquisition
Disposition
and others
Dividends
Capital
other
changes
December
31, 2011
Kumho Tire Co., Inc. \ 113,204 \ 113,204 \
(12,952) \
- \
- \
- \
(3,560) \
14,665 \ 111,357
For the year ended December 31, 2011
BC Card Co., Ltd.
10,876
136,270
-
-
(80,625)
Woori
Blackstone Korea
Opportunity Private
Equity Fund 1
Woori Service
Networks Co., Ltd.
Woori Private
Equity Fund
Korea Credit
Bureau Co., Ltd.
Korea Finance
Security Co., Ltd.
United PF 1st
Corporate Financial
Stability
75,400
24
2,704
74,100
24
104
6
64,508
50,637
(15,315)
3,600
2,554
758
3,436
458
87
-
-
-
-
148,000
-
1,099
148,000
-
-
(2,487)
-
-
-
-
-
(12)
-
-
(55)
-
(24,788)
(30,857)
-
-
-
(360)
-
-
-
-
-
-
-
-
-
76,828
98
32,475
3,012
3,468
149,099
Total
\ 416,370 \ 306,229 \
(23,913) \ 222,100 \
(83,112) \
(67) \
(28,708) \
(16,192) \ 376,337
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(4) Financial information of investments in associates accounted for using the equity method is as follows (Unit: korean won in
millions):
investee
December 31, 2012
assets
Liabilities
operating revenue
net income (net loss)
Kumho Tire Co., Inc.
\
4,782,299 \
3,893,931 \
4,047,691 \
Woori Blackstone Korea Opportunity
Private Equity Fund 1
Woori Service Networks Co., Ltd.
Woori Private Equity Fund
Korea Credit Bureau Co., Ltd.
Korea Finance Security Co., Ltd.
United PF 1st Corporate Financial Stability
Phoenix Digital Tech Co., Ltd
Chin Hung International Inc.
463,839
4,383
1,522,818
55,944
29,363
1,153,268
24,435
581,766
1,687
1,774
1,453,866
13,834
1,666
17,685
21,388
456,016
51,321
12,874
210,079
47,660
42,196
98,873
18,497
480,238
120,584
44,918
1,140
(25,189)
5,019
5,703
48,241
7,328
(62,617)
126
127
woori bank 2012 annUaL rEPorT
December 31, 2011
investee
assets
Liabilities
operating revenue
net income (net loss)
Kumho Tire Co., Inc.
\
4,634,196 \
4,112,068 \
3,946,765 \
Woori Blackstone Korea Opportunity
Private Equity Fund 1
Woori Service Networks Co., Ltd.
Woori Private Equity Fund
Korea Credit Bureau Co., Ltd.
Korea Finance Security Co., Ltd.
United PF 1st Corporate Financial Stability
358,946
3,541
1,540,494
51,484
24,446
836,104
750
1,552
1,394,267
9,650
1,812
30,162
17,971
11,492
376,243
41,409
42,790
48,117
(39,354)
12,608
697
(52,881)
6,380
1,069
5,942
As there is no investment amount on LIG E&C Co., Ltd, Hyunjin Co., Ltd., Pi city co., Ltd, Orient Shipyard Co., Ltd and Poong Lim Industrial Co., Ltd.
as of December 31, 2012 and reliable financial information is not available, financial information of these associates is not included in summarized
financial information.
11. InvESTMEnT PROPERTIES
(1) investment in properties are held by the Group to obtain rental income or profit through market value. The current status of
investment in properties are as follows (Unit: korean won in millions):
Cost of purchases or appraised value
Accumulated depreciation
Net carrying value
December 31, 2012
December 31, 2011
\
\
357,347 \
(11,165)
346,182 \
357,263
(7,804)
349,459
(2) Changes in investment properties are as follows (Unit: korean won in millions):
For the year ended
December 31, 2012
For the year ended
December 31, 2011
\
349,459 \
-
(3,437)
79
147
(66)
-
366,874
(11,780)
(3,433)
(2,212)
-
11
(1)
\
346,182 \
349,459
Beginning balance
Disposition
Depreciation
Impairment loss
Transfer to properties for business use
Foreign currencies translation adjustment
Others
Ending balance
128
129
(3) Fair value of investment properties as of December 31, 2012 are as follows (Unit: korean won in millions):
Classification
Woori Finance Sangam Center
and others
The latest
revaluation date
Land
building
Total
December 31, 2009 \
252,090 \
139,873 \
391,963
The fair value of investment properties is determined by the assessment performed by Korea Appraisal Board, the independent appraiser who has
proper qualification and experience. In addition, the above appraised value includes the amount of portion used for business by the Group.
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(4) For the year ended December 31, 2012 and 2011, the revenue occurred from investment properties is \13,468 million and
\16,553 million, and the operating expenses directly related to the investment properties that generate rental fee amount to
\1,882 million and \1,830 million, respectively.
12. PREMISES AnD EQUIPMEnT
(1) Details of premises and equipment are as follows (Unit: korean won in millions):
December 31, 2012
Land
building
Properties for
business use
Structures in
leased office
Construction
in progress
Total
Cost of purchases or appraised value \ 1,517,728 \
772,646 \
393,929 \
317,088 \
3,680 \ 3,005,071
Accumulated depreciation
-
(68,084)
(291,259)
(260,048)
-
(619,391)
Net carrying value
\ 1,517,728 \
704,562 \
102,670 \
57,040 \
3,680 \ 2,385,680
December 31, 2011
Land
building
Properties for
business use
Structures in
leased office
Construction
in progress
Total
Cost of purchases or appraised value \ 1,519,991 \
736,786 \
362,705 \
287,242 \
2,832 \ 2,909,556
Accumulated depreciation
-
(44,527)
(275,295)
(243,774)
-
(563,596)
Net carrying value
\ 1,519,991 \
692,259 \
87,410 \
43,468 \
2,832 \ 2,345,960
128
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woori bank 2012 annUaL rEPorT
(2) Details of changes in premises and equipment are as follows (Unit: korean won in millions):
For the year ended December 31, 2012
Land
building
Properties for
business use
Structures in
leased office
Construction
in progress
Total
Beginning balance
\ 1,519,991 \
692,259 \
87,410 \
43,468 \
2,832 \ 2,345,960
Foreign currencies translation
adjustment
Acquisition
Disposition
Depreciation
Classified to assets held for sale
Transfer (*1)
Others
Ending balance
(95)
2,742
(3,925)
(248)
30,710
(838)
(842)
54,201
(383)
(443)
35,361
(1,531)
-
(24,041)
(38,115)
(23,249)
(937)
(48)
-
290
6,430
-
-
269
130
-
-
3,434
(37)
8,835
-
-
-
(7,950)
-
(1,665)
131,849
(6,677)
(85,405)
(647)
(1,299)
3,564
\ 1,517,728 \
704,562 \
102,670 \
57,040 \
3,680 \ 2,385,680
Beginning balance
\ 1,520,737 \
690,814 \
79,910 \
41,474 \
1,451 \ 2,334,386
For the year ended December 31, 2011
Land
building
Properties for
business use
Structures in
leased office
Construction
in progress
Total
Foreign currencies translation
adjustment
Acquisition
Disposition
Depreciation
Impairment loss
15
3,449
(2,728)
-
-
Classified to assets held for sale
(1,482)
Transfer (*1)
Others
Ending balance
28
24,776
(429)
71
40,797
(596)
183
20,704
(535)
(21,748)
(32,772)
(19,685)
(59)
(1,123)
-
-
-
-
-
-
-
-
-
1,327
-
2,812
-
-
-
-
(1,431)
-
297
92,538
(4,288)
(74,205)
(59)
(2,605)
(1,431)
1,327
-
-
\ 1,519,991 \
692,259 \
87,410 \
43,468 \
2,832 \ 2,345,960
(*) \1,152 million and \1,431 million are transferred to other intangible assets, for the years ended December 31, 2012 and 2011, respectively. And \147 million is transferred to
investment properties for the year ended December 31, 2012.
130
131
13. InTAnGIBlE ASSETS
(1) Details of intangible assets are as follows (Unit: korean won in millions):
Development
costs
Software
industrial
property
rights
Core
deposits
others
Membership
Deposits (*)
Total
December 31, 2012
Cost of purchases or
appraised value
\
14,619 \
789 \
287 \
3,153 \
346,617 \
12,427 \
377,892
Accumulated depreciation
(12,697)
(427)
(121)
(2,917)
(251,466)
-
(267,628)
Accumulated impairment
losses
-
-
-
-
-
(1,344)
(1,344)
Net carrying value
\
1,922 \
362 \
166 \
236 \
95,151 \
11,083 \
108,920
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Development
costs
Software
industrial
property
rights
Core
deposits
others
Membership
Deposits (*)
Total
December 31, 2011
Cost of purchases or
appraised value
\
14,590 \
766 \
239 \
3,395 \
338,311 \
11,701 \
369,002
Accumulated depreciation
(11,417)
(298)
(89)
(2,801)
(207,010)
-
(221,615)
Accumulated impairment
losses
\
3,173 \
468 \
150 \
594 \
131,301 \
11,701 \
147,387
(*) Membership deposits include golf clubs and condominium membership deposits and, for this intangible asset, the exact period of useful life cannot be measured. Therefore, the Group
has recognized impairment loss for the membership deposits since the recoverable amount is lower than the carrying amount.
(2) Details of changes in intangible assets are as follows (Unit: korean won in millions):
For the year ended December 31, 2012
Development
costs
Software
industrial
property
rights
Core
deposits
others
Membership
deposit
Total
Beginning balance
\
3,173 \
468 \
150 \
594 \
131,301 \
11,701 \
147,387
Foreign currencies
translation adjustment
Acquisition
Depreciation
Impairment loss
Reversal of impairment loss
Disposal
Transfer (*1)
(1)
76
-
23
(1,326)
(129)
-
-
-
-
-
-
-
-
-
48
(32)
-
-
-
-
(26)
-
(212)
7,722
(168)
1,554
(407)
9,423
(332)
(44,746)
-
(46,565)
-
-
-
-
-
-
(66)
1,152
(1,771)
(1,771)
110
(343)
-
110
(409)
1,152
Ending balance
\
1,922 \
362 \
166 \
236 \
95,151 \
11,083 \
108,920
130
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woori bank 2012 annUaL rEPorT
For the year ended December 31, 2011
Goodwill
Development
cost
Software
industrial
property
rights
Core
deposit
others
Membership
deposit
Total
Beginning balance
\
209 \
5,169 \
157 \
131 \
922 \ 20,425 \ 12,353 \ 39,366
Foreign currencies
translation adjustment
Acquisition
Depreciation
Impairment loss
Disposal
Transfer (*1)
(6)
-
-
(203)
-
-
3
18
(1,999)
-
(18)
-
-
402
(91)
-
-
-
-
47
(28)
-
-
-
(2)
-
235
(124)
106
156,733
254
157,454
(326)
(46,658)
-
-
-
-
(865)
1,431
-
-
(782)
-
(49,102)
(203)
(1,665)
1,431
Ending balance
\
- \
3,173 \
468 \
150 \
594 \ 131,301 \ 11,701 \ 147,387
(*) \1,152 million and \ 1,431 million are transferred from construction in progress for the year ended December 31, 2012 and 2011, respectively.
14. OTHER ASSETS
Details of other assets are as follows (Unit: Korean Won in millions):
December 31, 2012
December 31, 2011
\
- \
-
407
165,390
8,346
153
173,889
3,576
588
\
178,460 \
20,049
20,049
-
189,169
11,475
188
200,832
4,094
555
225,530
Suspense receivables:
Suspense receivables in foreign currencies
Sub-total
Advance payments
Prepaid expenses:
Prepaid expenses in local currency
Prepaid expenses in foreign currencies
Unearned interest of prepaid expenses
Sub-total
Others:
Supplies and others
Non-operative assets:
Non-operative real properties
Total
132
133
15. ASSETS HElD FOR SAlE
In accordance with K-IFRS No. 1105 ‘Non-current assets held for sale and discontinued operations’, the Group reclassified certain assets into assets
held for sale as of January 1, 2010. Assets held for sale of \1,239 million and \2,258 million are recorded as of December 31, 2012 and December
31, 2011, respectively.
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16. ASSETS SUBJEcTED TO lIEn AnD ASSETS AcQUIRED THROUGH A FOREclOSURE
(1) Details of assets subjected to lien are as follows (Unit: korean won in millions):
December 31, 2012
Due from banks
Financial assets at FVTPL
Financial institutions
debt securities and others
Collateral given to
Samsung Securities
and others
\
Merrill Lynch and others
AFS financial assets
HTM financial assets
Loans
Korean treasury
and government
agencies bonds
Financial institutions
debt securities and
others
Korean treasury
and government
agencies bonds
Korean treasury
and government agencies
bonds and others
nomura Securities
and others
bok and others
nomura Securities
and others
bok and others
Postal Saving bank
of China
amount reason for collateral
5,989
Deposits for futures
margin and others
353,818
Substitute securities
and others
291,504
bonds sold under
repurchase
agreements(*)
1,334,106
Limitation on total loan
exposure and others
943,694
bonds sold under
repurchase
agreements(*)
3,867,577
Limitation on total loan
exposure and others
87,069 Collateral for borrowings
Total
\
6,883,757
132
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woori bank 2012 annUaL rEPorT
Collateral given to
Samsung Securities
and others
Financial institutions
debt securities and others
Merrill Lynch and others
395,019
Due from banks
Financial assets at FVTPL
AFS financial assets
HTM financial assets
Loans
Korean treasury
and government
agencies bonds
Financial institutions
debt securities and
others
Korean treasury
and government
agencies bonds
Korean treasury
and government agencies
bonds and others
Nomura Securities
and others
BOK and others
Nomura Securities
and others
BOK and others
Postal Saving Bank
of China
December 31, 2011
amount reason for collateral
\
12,965
Deposits for futures
margin and others
Substitute securities
and others
Bonds sold under
repurchase
agreements(*)
251,509
589,562
Limitation on total loan
exposure and others
986,262
Bonds sold under
repurchase
agreements(*)
4,926,496
Limitation on total loan
exposure and others
80,536 Collateral for borrowings
(*) It's debt securities sold under the agreement that the seller repurchases those at the agreed price or the sale price plus additional amounts at specified rate. As such, the debt securities
are not derecognized from the consolidated statements of financial position. The buyer of these debt securities has right to sell and pledge without constraints. As the debt securities
are not derecognized, the related transferred amount are recorded as a liability, which is debt securities sold under repurchasement agreement.
Total
\
7,242,349
(2) The building whose carrying amounts are \588 million and \555 million, respectively, as of December 31, 2012 and
December 31, 2011, was acquired through a foreclosure.
(3) Details of loaned securities as of December 31, 2012 and December 31, 2011 are as follows (Unit: korean won in millions):
December 31, 2012
December 31, 2011 Loaned to
Financial assets at FVTPL
Korean treasury and
government agencies bonds
\
AFS financial assets
Listed stock
Korean treasury and
government agencies bonds
- \
19,876 Korea Securities Depository
26,165
20,413
-
Samsung Securities
80,193 Korea Securities Depository
Total
\
46,578 \
100,069
Loaned securities are loans of specific securities to borrowers who agree to return a like quantity of the same security. As the Group does not
derecognize these securities, there is no liabilities relates to loaned securities.
134
135
(4) Collaterals held with right to sell and pledge without constraints
Fair value of the collaterals held with right to sell and pledge without constraints as of December 31, 2012 and December 31, 2011 are as follows (Unit:
Korean Won in millions):
Securities
Securities
December 31, 2012
Fair value of Collaterals
Fair value of the collaterals held with right to
sell and pledge without constraints
4,173,360 \
-
December 31, 2011
Fair value of Collaterals
Fair value of the collaterals held with right to
sell and pledge without constraints
605,058 \
-
\
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17. FInAncIAl lIABIlITIES AT FvTPl
(1) Financial liabilities at FVTPL are as follows (Unit: korean won in millions):
Financial liabilities held for trading
Financial liabilities designated at FVTPL
Total
December 31, 2012
December 31, 2011
\
\
3,153,242 \
315,454
3,468,696 \
3,187,358
322,208
3,509,566
(2) Details of financial liabilities held-for-trading are as follows (Unit: korean won in millions):
Borrowings:
Securities in short position
Derivative liabilities:
Interest rate derivatives
Currency derivatives
Stock derivatives
Other derivatives
Sub-total
Deposits
Gold banking liabilities
Total
December 31, 2012
December 31, 2011
\
- \
8,105
1,612,424
1,167,900
362,013
5,323
3,147,660
1,500,077
1,334,051
328,153
16,972
3,179,253
5,582
-
\
3,153,242 \
3,187,358
134
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(3) Details of financial liabilities designated at FVTPL are as follows (Unit: korean won in millions):
Debentures:
Debentures in local currency
Debentures in foreign currencies
Total
December 31, 2012
December 31, 2011
\
\
227,920 \
87,534
315,454 \
226,433
95,775
322,208
A portion of liabilities which do not meet the definition of financial liabilities held for trading is designated as financial instrument at FVTPL by using fair
value option to eliminate or significantly reduce a measurement or recognition inconsistency that would otherwise arise from recognizing assets and
liabilities on a different basis.
(4) Credit risk adjustments to financial liabilities designated at FVTPL are as follows (Unit: korean won in millions):
Financial liabilities designated at FVTPL
Changes in fair value for credit risk adjustments
Accumulated changes in credit risk adjustments
December 31, 2012
December 31, 2011
\
315,454 \
(23,142)
(49,612)
322,208
6,462
(26,470)
(5) Differences of the financial liabilities at FVTPL’s carrying amount and face amount at maturity are as follows (Unit: korean won
in millions):
Carrying amount
Face amount at maturity
Difference
December 31, 2012
December 31, 2011
\
\
315,454 \
290,333
25,121 \
322,208
296,498
25,710
18. DEPOSITS DUE TO cUSTOMERS (“ DEPOSITS ”)
(1) Details of deposits by interest type are as follows (Unit: korean won in millions):
Deposits in local currency:
Deposits on demand:
Interest bearing
Non-interest bearing
Sub-total
Money trust
Deposits at termination
Mutual installment
Sub-total
136
137
December 31, 2012
December 31, 2011
\
2,534,985 \
8,155,043
10,690,028
898
2,450,041
8,401,386
10,851,427
892
140,593,204
137,613,700
64,959
82,823
151,349,089
148,548,842
Certificate of deposits
Other deposits:
Deposits on notes payable
Deposits on CMA
Sub-total
Deposits in foreign currencies:
Interest bearing
Non-interest bearing
Sub-total
Present value discount
Total
(2) Details of deposits by customers are as follows (Unit: korean won in millions):
Individuals
Corporations
Other banks
Government agencies
Other financial institutions
Government
Non-profit corporations
Educational organizations
Foreign corporations
Others
Present value discount
Total
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December 31, 2012
December 31, 2011
1,144,569
959,458
2,940,580
1,518,282
4,458,862
10,071,993
993,043
11,065,036
(9,877)
2,479,546
1,752,379
4,231,925
9,178,643
1,192,566
10,371,209
(18,958)
\
168,007,679 \
164,092,476
December 31, 2012
December 31, 2011
\
55,386,597 \
54,410,817
21,490,959
14,142,455
8,123,948
3,049,380
4,275,326
2,642,535
1,522,774
2,972,765
(9,877)
53,634,183
50,557,685
22,427,121
12,938,301
7,337,791
6,269,995
4,204,331
2,509,585
1,333,507
2,898,935
(18,958)
\
168,007,679 \
164,092,476
19. BORROwInGS AnD DEBEnTURES
(1) Details of borrowings are as follows (Unit: korean won in millions):
Lender
interest rate (%)
amount
December 31, 2012
Borrowings in local currency:
Borrowings from the BOK
bok
Borrowing from government funds
Small & medium business Corporation and others
Others
Seoul Metropolitan Government and others
Sub-total
1.3 \
0.0 ~ 3.5
0.0 ~ 3.8
519,965
1,843,071
2,144,822
4,507,858
136
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woori bank 2012 annUaL rEPorT
Lender
interest rate (%)
December 31, 2012
Borrowings in foreign currencies
Commerz bank aG and others
Call-money
banks and others
Bonds sold under repurchase agreements
others
Bills sold
Securitized borrowings
Present value discount
Total
others
others
0.0 ~ 10.5
0.2 ~ 4.4
1.5 ~ 21.2
0.0 ~ 3.5
2.7 ~ 4.8
amount
6,966,540
4,505,094
890,367
82,624
494,600
(1,185)
\
17,445,898
Lender
interest rate (%)
amount
December 31, 2011
Borrowings in local currency:
Borrowings from the BOK
BOK
Borrowing from government funds
Korea Environment Management
Corporation and others
Sub-total
Others
Korea Finance Corporation and others
Borrowings in foreign currencies
Wilshire State Bank and others
Call-money
Banks and others
Bonds sold under repurchase agreements
Others
Bills sold
Securitized borrowings
Present value discount
Total
Others
Others
1.5 \
651,854
0.0 ~ 3.8
0.8 ~ 3.7
0.3 ~ 5.6
0.2 ~ 4.7
2.2 ~ 21.2
0.0 ~ 3.7
2.7 ~ 7.8
1,936,670
2,588,524
2,090,819
9,862,373
2,908,505
985,141
96,453
644,900
(2,073)
\
19,174,642
(2) Details of other monetary organizations’ borrowings are as follows (Unit: korean won in millions):
December 31, 2012
bok
General banks
others
Borrowings in local currency
\
519,965 \
- \
Borrowings in foreign currencies
Call-money
Bonds sold under repurchase agreements
-
-
-
6,961,979
572,094
32,133
- \
-
3,933,000
856,009
Total
519,965
6,961,979
4,505,094
888,142
Total
\
519,965 \
7,566,206 \
4,789,009 \
12,875,180
138
139
December 31, 2011
bok
General banks
others
Borrowings in local currency
\
651,854 \
2,350 \
- \
Borrowings in foreign currencies
Call-money
Bonds sold under repurchase agreements
-
-
-
9,785,599
1,046,292
-
76,177
1,862,213
982,530
Total
654,204
9,861,776
2,908,505
982,530
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Total
\
651,854 \
10,834,241 \
2,920,920 \
14,407,015
(3) Details of debentures are as follows (Unit: korean won in millions):
December 31, 2012
December 31, 2011
interest rate (%)
amount
interest rate (%)
amount
1.3 ~ 10.5 \
12,497,440
0.5 ~ 10.5 \
14,901,618
3.4 ~ 10.3
5,380,317
(35,779)
4.7 ~ 10.3
4,950,864
(40,669)
\
17,841,978
\
19,811,813
Carrying value of bond:
Ordinary bonds
Subordinated bonds
Discount on bonds
Total
20. PROvISIOnS
(1) Details of provisions are as follows (Unit: korean won in millions):
Provisions for guarantees (*)
Provisions for unused commitments
Provision for credit card points
Other provisions
Asset retirement obligation
Retirement benefit obligation
December 31, 2012
December 31, 2011
\
405,729 \
139,970
6,416
13,899
13,427
65,937
437,557
116,444
701
19,603
11,080
22,227
\
645,378 \
607,612
(*) Provision for guarantee is including provision for financial guarantee of \95,049 million and \186,638 million as of December 31, 2012 and December 31, 2011, respectively.
138
139
woori bank 2012 annUaL rEPorT
(2) Changes in provisions except asset retirement obligation and retirement benefit obligation are as follows (Unit: korean won
in millions):
Beginning balance
Provisions provided
Provisions used and others
Others
Reversal of unused amount
Foreign exchange translation adjustment
For the year ended December 31, 2012
Provisions
for guarantees
Provisions
for unused
commitments
Provisions
for credit card
points
other
provisions
\
437,557 \
116,444 \
701 \
19,603 \
51,870
(41,202)
34,426
(77,087)
165
26,370
(150)
-
(2,543)
(151)
27,078
(21,363)
-
-
-
18
(3,051)
-
(2,671)
-
Total
574,305
105,336
(65,766)
34,426
(82,301)
14
Ending balance
\
405,729 \
139,970 \
6,416 \
13,899 \
566,014
Beginning balance
Provisions provided
Provisions used and others
Others
Reversal of unused amount
Foreign exchange translation adjustment
For the year ended December 31, 2011
Provisions
for guarantees
Provisions
for unused
commitments
Provisions
for credit card
points
other
provisions
\
284,599 \
152,355 \
10,721 \
30,879 \
147,120
(35,248)
46,450
(5,251)
(113)
2,391
1
-
(38,310)
7
9,339
(19,359)
1,379
(12,655)
-
-
-
-
-
-
Total
478,554
160,229
(67,261)
46,450
(43,561)
(106)
Ending balance
\
437,557 \
116,444 \
701 \
19,603 \
574,305
(3) Changes in asset retirement obligation are as follows (Unit: korean won in millions):
For the year ended
December 31, 2012
For the year ended
December 31, 2011
\
11,080 \
1,561
(847)
1,605
28
\
13,427 \
18,159
617
(342)
(7,377)
23
11,080
Beginning balance
Provisions provided
Provisions used
Discount rate adjustment
Amortization
Ending balance
140
141
21. RETIREMEnT BEnEFIT OBlIGATIOn
(1) Details of retirement benefit obligation are as follows (Unit: korean won in millions):
Present value of defined benefit obligation
Fair value of plan assets
Retirement benefit obligation
December 31, 2012
December 31, 2011
\
\
384,098 \
(318,161)
65,937 \
234,663
(212,436)
22,227
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(2) Details of post-employee benefits recognized in net income are as follows (Unit: korean won in millions):
Current service cost
Interest cost
Expected return of plan assets
Actuarial loss (gain)
Past service cost
Losses on the curtailment or settlement
For the year ended
December 31, 2012
For the year ended
December 31, 2011
\
89,374 \
10,734
(11,124)
63,745
232
(41)
82,794
7,464
(5,697)
16,320
-
(299)
\
152,920 \
100,582
For the years ended December 31, 2012 and 2011, the Group appropriate its contribution retirement benefit at the expense of \2,196 million and
\2,439 million, respectively.
(3) Changes in present value of defined benefit obligation are as follows (Unit: korean won in millions):
Beginning balance
Service cost
Interest cost
Actuarial loss (gain)
Foreign currencies translation adjustments
Retirement benefit paid
Past service cost
Losses on the curtailment or settlement
Others
Ending balance
For the year ended
December 31, 2012
For the year ended
December 31, 2011
\
234,663 \
139,539
89,374
10,734
62,301
2
(11,084)
232
(2,208)
84
\
384,098 \
82,794
7,464
15,361
104
(9,035)
-
(1,564)
-
234,663
140
141
woori bank 2012 annUaL rEPorT
(4) Changes in the fair value of plan assets are as follows (Unit: korean won in millions):
Beginning balance
Expected return on plan assets
Actuarial loss (gain)
Employer’s contributions
Retirement benefit paid
Curtailment or settlement
Others
Ending balance
For the year ended
December 31, 2012
For the year ended
December 31, 2011
\
212,436 \
116,423
11,124
(1,444)
105,591
(7,107)
(2,055)
(384)
5,697
(959)
96,377
(3,643)
(1,265)
(194)
\
318,161 \
212,436
(5) actuarial assumptions used in retirement benefit obligation assessment are as follows:
Discount rate
Inflation rate
Expected rate of return on plan assets
Future wage growth rate
Mortality ratio
December 31, 2012
December 31, 2011
3.82%
2.35%
4.49%
5.66%
4.76%
2.30%
4.49%
5.31%
issued by korea insurance Development institute
Expected rate of return on plan assets as of December 31, 2012 and December 31, 2011, which were considered with the expect rate of return on
retirement pension, retirement trust and retirement insurances, are calculated as 4.49%, respectively.
(6) Details of plan assets are as follows (Unit: korean won in millions):
Time deposits
Others
Total
December 31, 2012
December 31, 2011
\
\
300,180 \
17,981
318,161 \
205,432
7,004
212,436
(7) The realized returns on plan assets for the year ended in December 31, 2012 and 2011 are \9,680 million and \4,738 million,
respectively.
(8) Details of retirement benefit obligation for recent 3 years are as follows (Unit: korean won in millions):
Retirement benefit obligation recognized
Present value of retirement benefit obligation
Fair value of plan assets
December 31, 2012
December 31, 2011
December 31, 2010
\
\
65,937 \
384,098
22,227 \
234,663
(318,161) \
(212,436) \
23,116
139,539
(116,423)
142
143
22. OTHER FInAncIAl lIABIlITIES AnD OTHER lIABIlITIES
Other financial liabilities and other liabilities are as follows (Unit: Korean Won in millions):
Other financial liabilities:
Accounts payable
Accrued expenses
Other financial liabilities(*)
Differences on discount for the present value of the other financial liabilities
Borrowing from trust accounts
Deposits
Agency business revenue
Domestic exchanges payable
Foreign exchanges payables
Others on credit cards
Agency and others
Sub-total
Other liabilities:
Unearned income
Other miscellaneous liabilities
Sub-total
Total
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December 31, 2012
December 31, 2011
\
11,171,472 \
2,543,730
122,563
(1,428)
3,549,776
270,176
341,430
161,620
876,165
112,394
1,573,212
20,721,110
154,572
229,105
383,677
6,112,868
2,651,400
59,377
(3,195)
2,381,862
256,725
153,701
2,968,232
694,362
101,106
970,531
16,346,969
209,026
235,523
444,549
\
21,104,787 \
16,791,518
(*) In accordance with the creditor financial institutions committee agreement, \94,205 million to be paid to other creditor financial institutions is included in other financial liabilities as
of December 31, 2012 (Notes 10 and 40).
23. DERIvATIvES
(1) Details of derivative assets and derivative liabilities are as follows (Unit: korean won in millions):
December 31, 2012
assets
Liabilities
notional
amount
Fair value
hedge
Cash flow
hedge
For
trading
Fair value
hedge
Cash flow
hedge
For
trading
\
152,098 \
- \
- \
- \
- \
- \
-
144,578,001
267,470
1,755,000
1,532,297
1,459,974
43,172,343
20,902,012
-
-
-
-
-
-
-
-
-
-
1,944
1,547,622
6,158
8,329
1,591,188
25,710
-
-
451,040
674,963
-
-
-
-
-
-
-
-
-
-
-
21,236
-
461,480
686,457
Interest rate:
Futures
Swaps
Long options
Short options
Currency:
Futures
Forwards
Swaps
142
143
woori bank 2012 annUaL rEPorT
December 31, 2012
assets
Liabilities
Fair value
hedge
Cash flow
hedge
Long options
Short options
Equity:
Futures
Long options
Short options
Others:
Forwards
Swaps
Long options
Short options
notional
amount
1,146,439
1,144,362
34,593
637,892
1,167,123
14,897
56,388
164,638
180,594
Fair value
hedge
Cash flow
hedge
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
For
trading
171,205
-
-
57,918
-
-
-
-
-
9,340
139
3,042
1,847
-
-
-
-
-
For
trading
-
19,963
-
-
362,013
285
2,964
-
2,074
-
-
-
-
-
-
-
-
-
Total
\ 218,098,651 \
267,470 \
1,944 \ 2,933,486 \
15,498 \
8,329 \ 3,147,660
December 31, 2011
assets
Liabilities
notional
amount
Fair value
hedge
Cash flow
hedge
For
trading
Fair value
hedge
Cash flow
hedge
For
trading
\
298,253 \
- \
- \
- \
- \
- \
-
176,139,868
326,413
2,445,000
2,771,136
1,065,618
35,359,148
27,243,579
1,957,680
1,890,912
18,945
591,620
1,177,223
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
1,386,661
12,885
10,518
1,469,153
36,254
-
-
749,082
722,915
395,419
-
-
53,706
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
2,179
-
-
-
-
-
-
30,924
-
311,625
995,488
-
26,938
-
-
328,153
Interest rate:
Futures
Swaps
Long options
Short options
Currency:
Futures
Forwards
Swaps
Long options
Short options
Equity:
Futures
Long options
Short options
144
145
December 31, 2011
assets
Liabilities
notional
amount
Fair value
hedge
Cash flow
hedge
For
trading
Fair value
hedge
Cash flow
hedge
For
trading
300
10,516
157,938
234,408
239,000
-
-
-
-
-
-
-
-
-
-
-
239
4,424
11,683
-
-
-
-
-
-
-
-
-
-
-
-
253
4,926
-
11,793
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Others:
Futures
Forwards
Swaps
Long options
Short options
Total
\ 251,601,144 \
326,413 \
- \ 3,360,383 \
12,885 \
12,697 \ 3,179,253
The above disclosure includes all derivatives regardless of the financial instrument categories. Derivatives held for trading purpose are classified into
financial assets or liabilities at FVTPL (see notes 7 and 20) and derivatives for hedging are stated as a separate line item at the consolidated statements
of financial position.
Fair value hedge is applied to avoid the risk of fluctuations in the fair value of financial assets and liabilities due to stock price and interest rate
fluctuations. There are AFS financial assets for hedging of stock price fluctuations and AFS financial assets and debentures for hedging of interest rate
fluctuations. Stock option is used to hedge for stock price fluctuations and interest rate swap is used to hedge for interest rate fluctuations when the
risk is recognized specifically.
Cash flow hedge is applied to avoid the risk of fluctuations in the cash flow of financial assets and liabilities due to exchange rate and interest rate
fluctuations. There is AFS financial assets and borrowings for hedging of exchange rate and interest rate. Currency swap is used to hedge for exchange
rate fluctuations and interest rate swap is used to hedge for interest rate fluctuations when the risk is recognized specifically.
The amounts of credit value adjustment (“CVA”) for the derivative assets as of December 31, 2012 and December 31, 2011 are as follows (Unit: Korean
Won in millions):
Derivative assets before CVA
CVA
Fair value of derivative assets
December 31, 2012
December 31, 2011
\
\
3,397,920 \
(195,020)
3,202,900 \
3,781,585
(94,789)
3,686,796
(2) Gains or losses on valuation of derivatives are as follows (Unit: korean won in millions):
Hedged items:
Gain on fair value hedges
Loss on fair value hedges
Total
For the year ended
December 31, 2012
For the year ended
December 31, 2011
\
\
43,879 \
(43,817)
62 \
4,921
(200,455)
(195,534)
144
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Hedging instruments:
Gain on derivatives
Loss on derivatives
Total
24. DAY 1 PROFITS AnD lOSSES
Changes in deferred day 1 profits and losses are as follows (Unit: Korean Won in millions):
Beginning balance
New transactions
Amounts recognized in net income
Ending balance
For the year ended
December 31, 2012
For the year ended
December 31, 2011
39,232 \
(49,956)
(10,724) \
193,374
(10,514)
182,860
For the year ended December 31
2012
4,570 \
1,817
(3,209)
3,178 \
2011
5,300
4,580
(5,310)
4,570
\
\
\
\
Although no observable elements were available in active market to determine fair value of the financial instruments, valuation techniques were utilized
to determine fair value of such instruments. These financial instruments are recorded at fair values at the time of purchase even though there were
differences noted on the transaction price and fair value obtained from valuation techniques. The table above shows the total amount of differences
yet to be recognized in net income.
25. cAPITAl STOcK, HYBRID EQUITY SEcURITIES AnD cAPITAl SURPlUS
(1) Capital stock, hybrid equity securities and capital surplus are as follows (Unit: korean won in millions):
For the year ended
December 31, 2012
For the year ended
December 31, 2011
\
3,479,783 \
350,000
1,681,807
346,880
465,136
\
6,323,606 \
3,479,783
350,000
1,681,807
346,880
465,136
6,323,606
Capital stock:
Common stock
Preferred stock
Hybrid equity securities
Capital Surplus:
Capital in excess of par value
Other capital surplus
Total
146
147
(2) The number of authorized shares is as follows:
Authorized shares of capital stock
Par value
Issued shares of
Common stock
Preferred stock
December 31, 2012
December 31, 2011
3,000,000,000 shares
3,000,000,000 shares
\
5,000 \
5,000
695,956,580 shares
695,956,580 shares
70,000,000 shares
70,000,000 shares
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(3) Hybrid equity securities classified as equity are as follows (Unit: korean won in millions):
issue date
Maturity
interest rates (%)
December 31, 2012
December 31, 2011
Local currency
2008. 6. 20.
2038. 6. 20.
7.7 \
254,632 \
Foreign currency
2007. 5. 2.
2037. 5. 2.
2009. 3. 31.
2039. 3. 31.
6.7
6.2
499,999
927,176
254,632
499,999
927,176
\
1,681,807 \
1,681,807
The Group can exercise its right to early repayment after five or ten years after issuing hybrid equity securities and, at the date of maturity, the
contractual agreements allow the Group to indefinitely extend the maturity date with the same contractual terms. In addition, if the Group decides not
to pay the dividends of common share at general shareholder's meeting, the Group may not pay interest on the hybrid equity securities.
(4) Details of capital surplus are as follows (Unit: korean won in millions):
December 31, 2012
December 31, 2011
Capital in excess of par value
Capital in excess of par value and stock issue cost
\
346,880 \
Other capital surplus
Increase by acquisition of banking segment of
formerly Peace Bank
Gain on disposal of subsidiary stock
(formerly Woori Investment Trust Management Co., Ltd.)
Loss on disposal of subsidiary stock
(formerly Woori Investment Securities Co., Ltd.)
Increase by merger with formerly
Woori Investment Bank Co., Ltd.
Increase by merger with formerly Woori Card
Increase by additional acquisition of interests
in P.T. Bank Woori Indonesia
Sub-total
Total
31,903
17,392
(55,369)
138,682
330,395
2,133
465,136
\
812,016 \
346,880
31,903
17,392
(55,369)
138,682
330,395
2,133
465,136
812,016
146
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woori bank 2012 annUaL rEPorT
26. OTHER EQUITY
Changes in other equity are as follows (Unit: Korean Won in millions):
For the year ended December 31, 2012
beginning
balance
increase
(decrease) on
valuation (*)
reclassification
adjustments(*)
income
tax effect
Ending
balance
\
543,428 \
74,596 \
(528,454) \
118,033 \
207,603
(1,491)
(2,430)
(1,122)
1,597
983
(99,522)
-
-
-
(387)
-
(281)
(1,447)
25,412
(75,232)
Gain (loss) on valuation of AFS
financial assets
Share of other comprehensive gain
(loss) on associates
Gain (loss) on valuation of cash flow hedge
Gain (loss) on overseas business translation
and others
Total
\
538,385 \
(22,346) \
(528,454) \
143,058 \
130,643
For the year ended December 31, 2011
beginning
balance
increase
(decrease) on
valuation (*)
reclassification
adjustments(*)
income
tax effect
Ending
balance
\
939,938 \
100,304 \
(581,215) \
84,401 \
543,428
20,857
(9,298)
(13,237)
(3,920)
7,617
15,818
(24,788)
(749)
-
6,360
-
(3,703)
(1,491)
(2,430)
(1,122)
Gain (loss) on valuation of
AFS financial assets
Share of other comprehensive gain
(loss) on associates
Gain (loss) on valuation of cash flow hedge
Gain (loss) on overseas business translation
and others
Total
\
938,260 \
119,819 \
(606,752) \
87,058 \
538,385
(*) For the change in gain orloss on valuation of AFS financial assets, increase (decrease) in valuation represents the change from the valuation for the period, and reclassification
adjustments show disposal or recognition of impairment losses on AFS financial assets.
148
149
27. RETAInED EARnInGS
(1) retained earnings as of December 31, 2012 and December 31, 2011 are as follows (Unit: korean won in millions):
December 31, 2012
December 31, 2011
Legal Reserve
Legal reserve
\
1,406,364 \
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Other legal reserve
Sub-total
Voluntary Reserve
Business rationalization reserve
Reserve for financial structure improvement
Additional reserve
Regulatory reserve for credit loss
Revaluation reserve
Other voluntary reserve
Sub-total
Retained earnings before appropriation
Total
1) Legal reserve
63,016
1,469,380
8,000
235,400
7,176,544
1,123,866
761,650
9,900
9,315,360
1,319,294
1,208,332
59,595
1,267,927
8,000
235,400
6,799,544
-
-
6,100
7,049,044
2,939,236
\
12,104,034 \
11,256,207
In accordance with the Act of Banking Law, legal reserve are appropriated at least one tenth of the earnings after tax on every dividend declaration, not
exceeding paid in capital. This reserve may not be used other than for offsetting a deficit or transferring to capital.
2) other legal reserve
Other legal reserves were appropriated in the branches located in Japan, Vietnam and Bangladesh, according to the banking laws of Japan, Vietnam
and Bangladesh, and may be used to offset any deficit incurred in those branches.
3) business rationalization reserve
Pursuant to the Tax Exemption and Reduction Control Law, the Group was previously required to appropriate, as a reserve for business rationalization,
amounts equal to tax reductions arising from tax exemptions and tax credits up to December 31, 2001. The requirement was no longer effective from 2002.
4) reserve for financial structure improvement
In 2002, the Finance Supervisory Services recommended banks in Korea to appropriate at least ten percent of net income after accumulated deficit for
financial structure improvement until simple capital ratio equals 5.5 percent. This reserve is not available for payment of cash dividends; however, it can
be used to reduce a deficit or be transferred to capital.
5) additional reserve and other voluntary reserve
Additional reserve and other voluntary reserve were appropriated for capital adequacy and other management purposes.
148
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6) regulatory reserve for credit loss
In accordance with Article 29 of the Regulation on Supervision of Banking Business (“RSBB”), if provisions for credit loss under K-IFRS for the accounting
purpose are lower than provisions under RSBB, the Group discloses such short fall amount as regulatory reserve for credit loss.
7) revaluation reserve
Revaluation reserve is the amount of limited dividends set by the board of directors to be recognized as complementary capital when the gain or loss
occurred in the property revaluation by adopting K-IFRS.
(2) The changes in retained earnings for the year ended December 31, 2012 and 2011 are as follows (Unit: korean won in millions):
Beginning balance
Net income attributable to shareholder
Dividend and others
Ending balance
For the year ended December 31
2012
\
11,256,207 \
1,447,904
(600,077)
2011
9,718,577
2,068,544
(530,914)
\
12,104,034 \
11,256,207
28. REGUlATORY RESERvE FOR cREDIT lOSS
In accordance with Article 29 of the RSBB, if the estimated provisions for credit loss determined in accordance with K-IFRS 1039 ‘Financial instruments:
Recognition and Measurement’ is lower than those in accordance with the provisions under RSBB, the Group shall disclose the difference as the
regulatory reserve for credit loss.
(1) balance of the regulatory reserve for credit losses is as follows (Unit: korean won in millions):
Beginning balance
Amount estimated to be appropriated
Ending balance
December 31, 2012
December 31, 2011
\
\
1,123,866 \
259,055
1,382,921 \
-
1,123,866
1,123,866
(2) Planned reserve provided, adjusted net income after the planned reserve provided and adjusted earnings per share after the
planned reserve provided are as follows (Unit: korean won in millions, except for earning per share amount):
Net income
Planned reserves provided
Adjusted net income after the planned reserves provided
\
1,448,575 \
259,055
1,189,520
Adjusted Earnings per share after the planned reserves provided
\
1,455 \
2,069,371
610,190
1,459,181
1,811
For the year ended
December 31, 2012
For the year ended
December 31, 2011
150
151
29. DIvIDEnDS
(1) Details of dividends and propensity to dividend are as follows (Unit: korean won in millions, except for per share amounts):
Shares outstanding (million)
Par value per share(won)
Capital stock
Number of shares issued (million)
Dividend per share(won)
Total dividend
Dividend rate
Net income
Payout ratio(*2)
\
\
\
\
\
December 31, 2012
December 31, 2011
Common stock
Preferred Stock (*1)
Common stock
Preferred Stock (*1)
696
5,000 \
70
5,000 \
696
5,000 \
70
5,000
3,479,783 \
350,000 \
3,479,783 \
350,000
696
169
117,306 \
3.4%
70
￦ 800 \
56,000 \
16%
696
608 \
423,053 \
12.2%
70
800
56,000
16%
1,448,575 \
1,448,575 \
2,069,371 \
2,069,371
8.1%
3.9%
20.4%
2.7%
(*1) Preferred stock is non-cumulative and non-participating and its dividend rate is 8% on issuance price per share.
(*2) Payout ratio of common stock and preferred stock after reflecting planned regulatory reserve for credit loss for the year ended December 31, 2012 are 9.9% and 4.7%,
respectively. And payout ratio of common stock and preferred stock after reflecting planned regulatory reserve for credit loss for the year ended December 31, 2011 are 29.0%
and 3.8%, respectively.
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30. nET InTEREST IncOME
(1) Details of interest income recognized are as follows (Unit: korean won in millions):
Financial asset at FVTPL:
Interest of securities:
Securities in local currency
Interest of other assets
Sub-total
AFS financial asset:
Interest of securities in local currency:
Interest of government bonds
Interest of finance debentures
Interest of debentures
Interest of beneficiary certificate
Interest of other securities
Interest of securities in foreign currencies
Sub-total
For the year ended
December 31, 2012
For the year ended
December 31, 2011
\
198,332 \
76,601
274,933
130,800
149,090
89,697
555
1
7,279
377,422
196,756
89,824
286,580
142,463
124,349
42,479
712
1
5,461
315,465
150
151
woori bank 2012 annUaL rEPorT
HTM financial asset:
Interest of securities in local currency:
Interest of government bonds
Interest of finance debentures
Interest of debentures
Others
Interest of securities in foreign currencies
Sub-total
Loans and receivables:
Interest on due from banks:
Interest on due from banks in local currency
Interest on due from banks in foreign currencies
Sub-total
Interest of loans:
Interest on loans in local currency
Interest on loans in foreign currencies
Interest on domestic usance bills
Interest on off-shore loans
Interest on inter-bank loans
Interest on call loans
Interest on bills bought
Interest on foreign currencies
Interest on payment for acceptances and guarantees
Interest on bonds sold under repurchase agreements
Interest on privately placed bonds
Interest on credit card receivables
Sub-total
Interest of other assets
Sub-total
Total
For the year ended
December 31, 2012
For the year ended
December 31, 2011
237,566
135,326
232,188
-
3,466
608,546
54,325
45,195
99,520
8,117,357
411,106
55,711
615
22,119
68,718
12,229
130,811
2,277
125,381
66,752
988,278
10,001,354
74,685
10,175,559
\
11,436,460 \
232,601
225,033
197,288
709
8,305
663,936
29,136
18,116
47,252
8,218,926
438,327
49,049
497
58,084
87,756
14,160
120,677
4,292
100,061
119,723
1,035,362
10,246,914
99,111
10,393,277
11,659,258
Interest income accrued from impaired loan is \86,086 million and \139,041 million for the year ended December 31, 2012 and 2011, respectively.
152
153
(2) interest expenses recognized are as follows (Unit: korean won in millions):
For the year ended
December 31, 2012
For the year ended
December 31, 2011
Interest of deposits:
Interest on demand deposits in local currency
\
26,894 \
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33
20,116
33
4,161,808
4,121,885
2,762
24,275
149,259
110,891
3,590
64,966
175,043
91,210
4,475,922
4,476,843
130,930
93,312
60,532
24,480
2,429
311,683
705,833
223,266
929,099
107,802
\
5,824,506 \
148,255
115,342
57,627
19,992
2,582
343,798
791,917
223,042
1,014,959
95,447
5,931,047
Interest on money trust
Interest on saving deposits in local currency
Interest on mutual installment
Interest on certificate of deposits
Interest on other deposits
Interest on deposits in foreign currencies
Sub-total
Interest of borrowings:
Interest on borrowings in local currency
Interest on borrowings in foreign currencies
Interest on call money
Interest on bonds sold under repurchase agreements
Interest on bills sold
Sub-total
Interest of debentures:
Interest on debentures in local currency
Interest on debentures in foreign currencies
Sub-total
Others
Total
152
153
woori bank 2012 annUaL rEPorT
31. nET FEE AnD cOMMISSIOn IncOME
Net commission income is the amount of commission expenses deducted from the amount of commission income, which details are as follows:
(1) Details of fee and commission income occurred are as follows (Unit: korean won in millions):
For the year ended
December 31, 2012
For the year ended
December 31, 2011
Commission received:
Commission received in local currency
Commission received in foreign currencies
Sub-total
Commission fees
Commission received on project financing
Commission received on credit card:
Credit card in local currency
Credit card in foreign currencies
Prepaid card
Debit card
Sub-total
CMA management charges
Commission received on securities
Other commission received
Commission received on trust business
Total
\
548,213 \
192,072
740,285
110,491
23,510
11,975
23,428
1,054
862
37,319
4,451
62,925
15,988
45,664
501,697
201,230
702,927
97,386
22,847
12,800
21,113
1,375
777
36,065
5,553
71,688
20,688
36,775
\
1,040,633 \
993,929
(2) Details of fees and commissions expenses occurred are as follows (Unit: korean won in millions):
Commission expenses:
Commission expenses in local currency
Commission expenses in foreign currencies
Sub-total
Commission expenses on credit card:
Credit card in local currency
Credit card in foreign currencies
Debit card
Sub-total
154
155
For the year ended
December 31, 2012
For the year ended
December 31, 2011
\
64,407 \
28,510
92,917
390,055
2,124
958
393,137
61,909
22,722
84,631
337,794
2,715
771
341,280
Commission expenses on securities
Commission expenses on other
Commission expenses on trust business
Total
32. DIvIDEnD IncOME
Details of dividend income recognized are as follows (Unit: Korean Won in millions):
Financial assets at FVTPL:
Dividend income in local currency
AFS financial assets:
Dividend in local currency
Dividend in foreign currencies
Sub-total
Total
For the year ended
December 31, 2012
For the year ended
December 31, 2011
33
53,966
1,833
\
541,886 \
140
58,065
1,822
485,938
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For the year ended
December 31, 2012
For the year ended
December 31, 2011
\
6,030 \
7,484
85,149
3,668
88,817
\
94,847 \
111,595
4,071
115,666
123,150
33. GAInS (lOSSES) On FInAncIAl ASSETS AT FvTPl
(1) Details of gains (losses) related to financial assets at FVTPL are as follows (Unit: korean won in millions):
Gains and losses on financial assets held for trading
Gains and losses of financial assets designated at FVTPL
Total
For the year ended
December 31, 2012
For the year ended
December 31, 2011
\
\
(355,666) \
(73)
(355,739) \
78,797
27,885
106,682
154
155
woori bank 2012 annUaL rEPorT
(2) Details of gain (loss) on financial assets held for trading are as follows (Unit: korean won in millions):
For the year ended
December 31, 2012
For the year ended
December 31, 2011
Gain (loss) on securities:
Gain on retirement of securities in local currency
Loss on retirement of securities in local currency
Sub-total
Gain on transaction of securities in local currency
Loss on transaction of securities in local currency
Gain on transaction of securities in foreign currency
Sub-total
Gain on valuation of securities in local currency
Loss on valuation of securities in local currency
Sub-total
Gain (loss) on securities sub-total
Gain (loss) on derivatives (for trading):
Gain on transaction and valuation of derivatives:
Gain on interest rates derivatives
Loss on interest rates derivatives
Sub-total
Gain on currencies derivatives
Loss on currencies derivatives
Sub-total
Gain on equity derivatives
Loss on equity derivatives
Sub-total
Gain on other derivatives
Loss on other derivatives
Sub-total
Gain (loss) on derivatives sub-total
Gain (loss) on other financial instruments:
Gain on transaction of other financial instruments
Loss on transaction of other financial instruments
Sub-total
Gain on valuation of other financial instruments
Loss on valuation of other financial instruments
Sub-total
Gain on other financial instruments sub-total
Total
156
157
\
16 \
(203)
(187)
76,766
(43,260)
258
33,764
12,544
(9,152)
3,392
36,969
1,123,851
(1,152,436)
(28,585)
4,172,714
(4,523,494)
(350,780)
95,069
(108,144)
(13,075)
46,858
(47,669)
(811)
(393,251)
1,193
(619)
574
1,304
(1,262)
42
616
\
(355,666) \
1
(29)
(28)
57,301
(109,119)
-
(51,818)
15,598
(18,559)
(2,961)
(54,807)
1,843,855
(1,841,678)
2,177
3,557,210
(3,471,419)
85,791
176,187
(139,137)
37,050
83,429
(81,591)
1,838
126,856
8,464
(2,130)
6,334
416
(2)
414
6,748
78,797
(3) Details of gain (loss) on financial instrument at FVTPL are as follows (Unit: korean won in millions):
Gain (loss) on other financial instruments:
Gain on disposition of other financial instruments
Gain (loss) on valuation of other financial instruments
Total
For the year ended
December 31, 2012
For the year ended
December 31, 2011
\
\
- \
(73)
(73) \
18,861
9,024
27,885
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34. GAInS (lOSSES) On AFS FInAncIAl ASSETS
Details of gains (losses) on AFS financial assets recognized are as follows (Unit: Korean Won in millions):
Gain on transaction of securities:
Gain on redemption of securities in local currency
Gain on transaction of securities in local currency
Gain on transaction of securities in foreign currencies
Sub-total
Impairment loss:
Securities in local currency
Securities in foreign currencies
Sub-total
Total
For the year ended
December 31, 2012
For the year ended
December 31, 2011
\
76 \
649,799
513
650,388
(92,017)
(6,046)
(98,063)
\
552,325 \
72
1,194,274
5,715
1,200,061
(163,529)
(19,786)
(183,315)
1,016,746
35. GAIn (lOSS) On HTM FInAncIAl ASSETS
There is no gain or loss on HTM financial assets for the years ended December 31, 2012 and 2011, respectively. In addition, details of interest income
of HTM financial assets are stated in note 33.
156
157
woori bank 2012 annUaL rEPorT
36. IMPAIRMEnT lOSSES FOR lOAnS, OTHER REcEIvABlES, GUARAnTEES AnD UnUSED cOMMITMEnTS
Impairment losses for loans, other receivables, guarantees and unused commitments are as follows (Unit: Korean Won in millions):
Loans:
Bad debt expenses
Reversal of provision for loan losses and receivables
Sub-total
Guarantees:
Provision for guarantee
Reversal of provision for guarantee
Total
Commitments:
Provision for unused commitment
Reversal of provision for unused commitment
Total
Sub-total
Total
For the year ended
December 31, 2012
For the year ended
December 31, 2011
\
(1,841,402) \
(1,787,955)
42,309
(1,799,093)
77,302
(1,710,653)
(51,870)
77,087
25,217
(26,369)
2,543
(23,826)
1,391
(147,120)
5,251
(141,869)
(2,391)
38,310
35,919
(105,950)
\
(1,797,702) \
(1,816,603)
37. GEnERAl AnD ADMInISTRATIvE EXPEnSES AnD nET OTHER OPERATInG IncOME (EXPEnSES)
(1) Details of general and administrative expenses are as follows (Unit: korean won in millions):
For the year ended
December 31, 2012
For the year ended
December 31, 2011
Salaries
Short-term salaries
\
1,037,944 \
Severance benefits-defined benefit
Severance benefits- defined contribution
Termination
Sub-total
Depreciation
Other general and administrative expenses
Employee benefits
Reimburse
Travel
Operating promotion expenses
Rent
Maintenance
Advertising expenses
Taxes and dues
158
159
152,920
2,196
54,896
1,044,031
100,582
2,439
42,907
1,247,956
1,189,959
131,970
297,694
68,731
7,182
47,971
204,609
13,034
57,541
107,119
123,307
259,620
61,198
6,815
42,245
187,020
12,004
69,632
109,188
Insurance
Computer related expenses
Service fees
Communications
Printings
Water, light and heating
Supplies
Vehicle maintenance
Other expenses
Others
Sub-total
Total
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For the year ended
December 31, 2012
For the year ended
December 31, 2011
3,126
260,526
192,908
39,500
10,711
14,536
6,668
10,878
523
4,457
1,347,714
\
2,727,640 \
3,108
245,111
163,277
32,905
10,901
13,192
6,025
9,479
134
4,240
1,236,094
2,549,360
(2) Details of net other operating income (expenses) recognized are as follows (Unit: korean won in millions):
Other operating incomes
Other operation expenses
Net other operating expenses
For the year ended
December 31, 2012
For the year ended
December 31, 2011
\
\
2,696,966 \
(2,874,801)
(177,835) \
8,368,158
(8,891,787)
(523,629)
(3) Details of other operating income recognized are as follows (Unit: korean won in millions):
Gain on transaction of foreign exchange
Gain on derivatives (for hedging)
Gain on fair value hedging derivatives
Gain on disposal of loans
Gain on trusts
Others(*)
Total
For the year ended
December 31, 2012
For the year ended
December 31, 2011
\
2,394,423 \
39,232
43,879
121,424
1,096
96,912
8,104,932
193,374
4,921
51,910
1,403
11,618
\
2,696,966 \
8,368,158
(*) Income related to \91,308 million which the Group is to receive from other creditor financial institutions is included in accordance with the creditor financial institutions committee
agreement (Notes 10 and 25).
158
159
woori bank 2012 annUaL rEPorT
(4) Details of other operating expenses recognized are as follows (Unit: korean won in millions):
Loss on transaction of foreign exchange
Loss on derivatives (for hedging)
Loss on fair value hedging derivatives
Deposit insurance premium
Contribution to miscellaneous funds
Export bond insurance fees
Loss on disposal of loans
Other expenses(*)
Total
For the year ended
December 31, 2012
For the year ended
December 31, 2011
\
1,996,863 \
7,955,322
49,956
43,817
220,941
307,981
136
127,656
127,451
10,513
200,455
207,991
298,685
95
196,187
22,539
\
2,874,801 \
8,891,787
(*) Expenses related to \94,205 million which the Group is to carry out a payment to other creditor financial institutions is included in accordance with the creditor financial institutions
committee agreement (Notes 10 and 25).
38. nOn-OPERATInG IncOMES(EXPEnSES)
(1) Details of gain(loss) on valuation of investments in associates recognized are as follows (Unit: korean won in millions) :
Gain on valuation of investments in associates
Loss on valuation of investments in associates
Total
For the year ended
December 31, 2012
For the year ended
December 31, 2011
\
\
38,815 \
(11,389)
27,426 \
4,355
(28,268)
(23,913)
(2) Details of other non-operating incomes(expenses) recognized are as follows (Unit: korean won in millions):
For the year ended
December 31, 2012
For the year ended
December 31, 2011
\
\
147,080 \
(98,178)
48,902 \
177,647
(87,751)
89,896
Other non-operating incomes
Other non-operating expenses
Total
160
161
(3) Details of other non-operating incomes recognized are as follows (Unit: korean won in millions):
For the year ended
December 31, 2012
For the year ended
December 31, 2011
Gain on disposal of investment in associates
\
25,102 \
Rental fee income
Gain on transaction of other assets
Reversal of impairment of other assets
Gain on restoration
Others
Total
16,019
1,549
2,175
224
102,011
\
147,080 \
26,231
19,168
65,166
321
105
66,656
177,647
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(4) Details of other non-operating expenses recognized are as follows (Unit: korean won in millions):
For the year ended
December 31, 2012
For the year ended
December 31, 2011
Loss on disposal of investments in subsidiaries and associates
\
167 \
Loss on disposition of other assets
Loss on valuation of other assets
Donation
Loss on restoration
Depreciation of investment properties
Interest expenses of rent leasehold deposit
Expenses on collecting of charge-offs special bonds
Others
Total
346
1,776
63,163
528
3,437
2,551
9,906
\
16,304
98,178 \
-
2,675
4,614
38,041
301
3,433
2,615
8,612
27,460
87,751
39. IncOME TAX EXPEnSE
(1) Details of income tax expense are as follows (Unit: korean won in millions):
Current income tax payable
\
411,197 \
Adjustment recognized in the period for current tax of prior periods
Changes in deferred income taxes due to temporary differences
Changes in deferred income taxes directly in equity
(23,811)
(191,897)
131,221
Income tax expense
\
326,710 \
489,483
(4,796)
18,055
87,058
589,800
For the year ended
December 31, 2012
For the year ended
December 31, 2011
160
161
woori bank 2012 annUaL rEPorT
(2) income tax expense can be reconciled to net income as follows (Unit: korean won in millions):
Net income before income tax
Tax calculated at statutory tax rate(*)
Adjustments:
Effect on non-taxable income
Effect on non-deductible expense
Deferred tax effect from changes in tax rate
Consolidated tax return
Adjustment recognized in the period for current tax of prior periods
Others
Income tax expense
Effective tax rate
For the year ended
December 31, 2012
For the year ended
December 31, 2011
\
1,775,285 \
429,157
(59,811)
28,301
-
(40,631)
(23,811)
(6,495)
\
326,710 \
18.4%
2,659,171
643,493
(46,060)
53,980
(11,618)
(45,199)
(4,796)
-
589,800
22.2%
(*) 2012 Tax rates : The corporate tax rate is 11 percent up to \200 million, 22 percent over \200 million to \20 billion and 24.2 percent over \20 billion.
2011 Tax rates : The corporate tax rate is 11 percent up to \200 million and 24.2 percent over \200 million.
(3) Changes in cumulative temporary differences for the years ended December 31, 2012 and 2011 are as follows (Unit: korean
won in millions):
For the year ended December 31, 2012
beginning
balance
recognized as
income(loss)
recognized as
other comprehensive
income(loss)
Ending
balance
Temporary differences to be charged
to income tax expense:
Loss (gain) on valuation of
securities
Loss (gain) on valuation of
investments in associates
Gain (loss) on valuation of
derivatives
Accrued income
Depreciation of premises and
equipment
Allowance for loan loss
Write-off of loans
Deferred loan origination fees
and costs
Accrued expenses
Retirement benefit obligation
Plan assets
Provisions for guarantees
162
163
\
213,203 \
2,660 \
- \
215,863
26,341
(155,231)
(64,657)
(4,337)
(14,490)
9,092
(37,645)
39,998
42,634
(42,634)
60,156
8,528
80,746
(2,726)
3,364
900
(653)
(18,242)
(463)
34,068
(21,567)
15,226
(386)
34,483
-
-
-
-
-
-
-
-
-
-
(74,485)
(67,383)
(973)
(13,590)
8,439
(55,887)
39,535
76,702
(64,201)
75,382
Other provision
Loss (gain) on valuation of
debentures
Provision for advanced depreciation
Gain (loss) on valuation of
AFS securities
Gain (loss) on overseas business
translation
Other capital surplus
Others
For the year ended December 31, 2012
beginning
balance
recognized as
income(loss)
recognized as
other comprehensive
income(loss)
32,714
75,702
(20,878)
(173,688)
(1,125)
(511)
5,255
(4,943)
-
-
-
-
(101,841)
(41,478)
-
-
-
104,213
25,411
511
1,473
Net deferred tax assets (liabilities)
\
(117,197) \
60,675 \
131,222 \
For the year ended December 31, 2011
beginning
balance
recognized as
income(loss)
recognized as
other comprehensive
income(loss)
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Ending
balance
37,969
70,759
(20,878)
(69,475)
24,286
-
(141,846)
74,700
Ending
balance
Temporary differences to be charged
to income tax expense:
Loss (gain) on valuation of
securities
Loss (gain) on valuation of
investments in associates
Gain (loss) on valuation of
derivatives
Accrued income
Depreciation of premises and
equipment
Allowance for loan loss
Write-off of loans
Deferred loan origination fees
and costs
Accrued expenses
Retirement benefit obligation
Plan assets
Provisions for guarantees
Other provision
Loss (gain) on valuation of
debentures
Deposits due to customers
\
144,629 \
68,574 \
- \
213,203
28,620
(112,834)
(50,088)
(7,278)
83,328
56,816
(27,623)
24,016
22,078
(22,995)
49,058
47,293
35,139
1,375
(6,654)
(42,397)
(14,569)
2,941
(97,818)
(47,724)
(10,022)
15,982
20,556
(19,639)
11,098
(14,579)
40,563
(1,375)
4,375
26,341
-
-
-
-
-
-
-
-
-
-
-
-
-
(155,231)
(64,657)
(4,337)
(14,490)
9,092
(37,645)
39,998
42,634
(42,634)
60,156
32,714
75,702
-
162
163
woori bank 2012 annUaL rEPorT
Provision for advanced depreciation
Gain (loss) on valuation of AFS
securities
Gain (loss) on overseas business
translation
Other capital surplus
Others
For the year ended December 31, 2011
beginning
balance
recognized as
income(loss)
recognized as
other comprehensive
income(loss)
(18,980)
(257,649)
153
-
(94,200)
(1,898)
-
-
(511)
(7,641)
-
83,961
(1,278)
-
-
Net deferred tax assets (liabilities)
\
(99,142) \
(105,113) \
87,058 \
Ending
balance
(20,878)
(173,688)
(1,125)
(511)
(101,841)
(117,197)
(4) Unrealizable temporary differences are as follows (Unit: korean won in millions):
Temporary differences on investments in subsidiaries
\
- \
5,168
Temporary differences on hybrid equity securities
Others
Total
(1,889,873)
(1,889,873)
6,365
-
\
(1,883,508) \
(1,884,705)
December 31, 2012
December 31, 2011
(5) Details of deferred tax relating to items that are recognized directly in equity are as follows (Unit: korean won in millions):
Gain (loss) on valuation of AFS securities
Gain(loss) on valuation of investments in associates
Gain (loss) on overseas business translation
Total
(6) Current tax assets and liabilities are as follows (Unit: korean won in millions):
Current tax assets
Current tax liabilities
December 31, 2012
December 31, 2011
(69,475) \
(173,688)
90
24,286
(1,508)
(1,125)
(45,099) \
(176,321)
\
\
December 31, 2012
December 31, 2011
\
1,882 \
136,517
2,393
206,367
(7) Deferred tax assets and liabilities are as follows (Unit: korean won in millions):
Deferred tax assets
Deferred tax liabilities
Net deferred tax liabilities
164
165
December 31, 2012
December 31, 2011
\
\
82,397 \
(7,697)
74,700 \
9,249
(126,446)
(117,197)
40. EARnInGS PER SHARE (“EPS”)
(1) basic EPS is calculated by dividing net income by weighted average number of common shares outstanding (Unit: korean
won in millions, except for per share amout)
Net income attributable to common shares:
Net income attributable to the controlling equity
Dividend on preferred stock
Dividend on hybrid equity securities
Weighted average number of common shares outstanding
Basic EPS
For the year ended
December 31, 2012
For the year ended
December 31, 2011
\
\
\
1,447,904 \
(56,000)
(121,022)
1,270,882 \
2,068,544
(56,000)
(142,548)
1,869,996
696 million shares
696 million shares
1,826 \
2,687
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(2) Diluted EPS is calculated by reflecting the dilution effect to net income (Unit: korean won in millions, except for per share
amounts)
Diluted net income:
Net income attributable on common shares
Dilution effect of convertible preferred stock
For the year ended
December 31, 2012
For the year ended
December 31, 2011
\
1,270,882 \
56,000
1,326,882
1,869,996
56,000
1,925,996
Weighted average number of share for diluted earnings per share:
Weighted average number of common shares outstanding
696 million shares
696 million shares
Convertible preferred stock
Diluted EPS
70 million shares
70 million shares
766 million shares
766 million shares
\
1,732 \
2,514
Diluted EPS is calculated by adjusting the assumption that all dilutive potential common shares are converted to common shares, for weighted
average number of shares calculation. The dilutive potential common shares are convertible preferred stock assumed to be converted to common
shares and included in the number of common shares to calculate diluted EPS and the relate dividend is added to net income on common shares.
164
165
woori bank 2012 annUaL rEPorT
41. cOnTInGEnT lIABIlITIES AnD cOMMITMEnTS
(1) Details of guarantee which the Group has provided for others are as follows (Unit: korean won in millions):
December 31, 2012
December 31, 2011
Confirmed guarantee:
Guarantee for debenture issuances
Guarantee for loans
Acceptances
Guarantee in acceptances of imported goods
Other confirmed guarantees
Sub-total
Unconfirmed guarantee:
Local letter of credit
Import letter of credit
Other unconfirmed guarantee
Sub-total
Commercial paper purchase
commitment and others
Total
\
- \
89,725
572,353
110,171
8,412,324
9,184,573
773,385
5,428,310
2,368,781
8,570,476
1,956,447
\
19,711,496 \
135
220,966
807,772
128,152
9,845,755
11,002,780
934,060
4,490,294
3,133,110
8,557,464
2,956,081
22,516,325
(2) Details of loan commitments and other commitments which the Group provided for others are as follows (Unit: korean won
in millions):
Loan commitments in local currency
Loan commitments in foreign currency
Securities purchase contract
Non-recourse endorsement notes
Total
December 31, 2012
December 31, 2011
\
64,368,276 \
21,857,955
1,394,165
4,812,500
63,666,555
21,042,424
1,498,686
7,197,250
\
92,432,896 \
93,404,915
(3) Details of guarantees and the related provisions for guarantees are as follows (Unit: korean won in millions):
Confirmed guarantees
Unconfirmed guarantees
Commercial paper purchase commitments and others
Total
Provisions for guarantees
Ratio of provisions to total guarantees
166
167
December 31, 2012
December 31, 2011
\
9,184,573 \
11,002,780
8,570,476
1,956,447
19,711,496
\
405,729 \
2.06%
8,557,464
2,956,081
22,516,325
437,557
1.94%
(4) Litigation case
The Group has filed lawsuits as follows (Unit: Korean Won in millions):
Number of cases
Amount of litigation
Provisions for litigations
Number of cases
Amount of litigation
Provisions for litigations
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December 31, 2012
as plaintiff
as defendant
889 case
\
1,456,296 \
335 case
538,672
10,203
December 31, 2011
as plaintiff
as defendant
779 case
\
1,020,035 \
179 case
333,177
12,679
The litigations from the electronic reminder (payment orders for unpaid credit card receivables to individuals) are not included on the number of cases
as of September30, 2012 and December 31, 2011, respectively, and there are no significant effects on the financial statements as of December 31,
2012 and December 31, 2011.
The domestic banks refused to refund the cost to put up collateral security to the customers which were determined and mediated by Korean
Consumer Agency. In this regard, the Group has been filed 115 lawsuits as of December 31, 2012 and more lawsuits are expected to file in the
future. The expected outflow of resources of the Group is not likely to be high, hence the Group has not set up the provision for litigation.
42. RElATED PARTY TRAnSAcTIOnS
Related parties of the Group, assets and liabilities recognized and major transactions with related parties during the current and prior period are as
follows:
(1) The related parties of the Group as of December 31, 2012 and December 31, 2011 are as follows:
Ultimate controlling party
(Government related entity)
Parent
Associates
Related parties
KDIC
WFH
Kumho Tires Co., Ltd., Woori Blackstone Korea Opportunity Private Equity Fund 1,
Woori Private Equity Fund, Woori Service Networks Co., Ltd., United PF 1st Corporate financial stability,
Korea Credit Bureau Co., Ltd., Korea Finance Security Co., Ltd., LIG E&C Co., Ltd., Hyunjin Co., Ltd.,
Chin Hung International Inc., Pi City Co., Ltd., Orient Shipyard Co., Ltd., CNK Co., Ltd.,
Poonglim Industrial Co., Ltd., Phoenix Digital Tech Co., Ltd.
166
167
woori bank 2012 annUaL rEPorT
Other
Woori Financial Co., Ltd., Woori Asset Management Co., Ltd., Woori FIS Co., Ltd.,
Related parties
WFG Savings Bank, Woori Private Equity, Woori Aviva Life Insurance Co., Ltd., Kyongnam Bank,
Kyongnam Bank Principal and Interest Trust, Kwangju Bank, Kwangju Bank Principal and Interest Trust,
Woori F&I Co., Ltd., Woori Asset Management, Kumho Investment Bank, Woori EL Co., Ltd.,
Woori Investment & Securities Co., Ltd., Woori Futures, Woori Renaissance Holdings Co., Ltd.,
UP Chemical Co., Ltd., Seoul Lakeside CC Inc, Hybrid 1st Specialty Inc. and 64 SPEs,
Woori Heritage Long-short PEF 1st and 34 beneficiary certificates.
(2) assets and liabilities from transactions with related parties are as follows (Unit: korean won in millions):
related party
Ultimate
controlling party
(Government
related entity)
KDIC
Parent
WFH
accounts
Loans
Provision for credit loss
Other assets
Deposits
Other liabilities
Loans
Other assets
Deposits
Other liabilities
Associates
Kumho Tires Co., Ltd.
Loans
Provision for credit loss
Other assets
Deposits
Other liabilities
Korea Credit Bureau Co., Ltd.
Loans
Deposits
Other liabilities
Woori Private Equity Fund
Other assets
Deposits
Other liabilities
Korea Finance Security Co., Ltd.
Loans
Provision for credit loss
Deposits
Other liabilities
168
169
December 31, 2012
December 31, 2011
\
- \
-
610,872
344,653
2,182
241
20,829
206,137
167,849
399,282
(33,510)
49,397
58,298
61
2
2,003
22
9
1,678
3
60
-
4,225
20
1,000,000
(337)
762,109
136,916
120
483
2
38,745
238,161
422,840
(51,468)
26,925
36,131
57
3
3,000
53
-
12,377
-
45
(1)
2,638
23
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related party
accounts
December 31, 2012
December 31, 2011
Associates
Woori Service Networks Co., Ltd.
Loans
\
19 \
Provision for credit loss
Deposits
Other liabilities
Deposits
Other liabilities
United PF 1st corporate
financial stability
LIG E&C Co., Ltd.
Loans
Hyunjin Co., Ltd.
Provision for credit loss
Deposits
Other liabilities
Other assets
Provision for credit loss
Deposits
Other liabilities
Chin Hung International Inc.
Loans
Pi City Co., Ltd.
Provision for credit loss
Deposits
Other liabilities
Loans
Provision for credit loss
Deposits
Orient Shipyard Co., Ltd.
Other assets
CNK Co., Ltd.
Provision for credit loss
Deposits
Loans
Provision for credit loss
Other assets
Deposits
Other liabilities
Poonglim Industrial Co., Ltd.
Loans
Provision for credit loss
Deposits
Other liabilities
Phoenix Digital Tech Co., Ltd.
Loans
Provision for credit loss
Deposits
(1)
1,645
207
9,003
72
742
(68)
1,227
25
-
-
6,182
49
37,788
(30,315)
988
4
60,000
(69)
199
23,346
(1,332)
572
4,422
(868)
8
98
7
43,394
(416)
4,558
70
1,502
(296)
8
20
(1)
1,457
201
2
-
742
(70)
2,408
47
313
(313)
17,477
233
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
168
169
woori bank 2012 annUaL rEPorT
related party
Others
Woori Investment &
Securities Co., Ltd. and subsidiaries
accounts
Loans
Provision for credit loss
Other assets
Deposits
Borrowings
Other liabilities
Kyongnam Bank and subsidiaries
Other assets
Kwangju Bank
Deposits
Borrowings
Other liabilities
Loans
Other assets
Deposits
Borrowings
Other liabilities
Woori F&I Co., Ltd. and subsidiaries
Loans
Provision for credit loss
Other assets
Deposits
Other liabilities
Woori Private Equity and subsidiaries
Loans
Provision for credit loss
Other assets
Deposits
Borrowings
Other liabilities
Other subsidiaries of WFH
Loans
Provision for credit loss
Other assets
Deposits
Other liabilities
Associates of Woori F&I Co., Ltd.
Deposits
Other liabilities
Associates of Woori Private Equity
Loans
Provision for credit loss
Deposits
Other liabilities
170
171
December 31, 2012
December 31, 2011
\
1,523 \
(472)
5,976
1,404,084
7,555
131,166
105,707
6,286
167
171,415
229
11,971
8,801
26,021
4,155
73
(1)
5
50,444
340
20,050
(1,443)
16,527
19,187
1,000
10,748
50,682
(286)
509
33,292
49,704
23,459
16
11,696
(149)
14,505
187
1,822
(342)
7,660
788,137
13,454
142,880
42,659
5,739
1,409
36,741
229
27,904
8,605
28,418
11,770
69
(1)
96
89,301
403
20,054
(164)
10,457
19,301
1,000
15,577
50,510
(230)
84
30,202
18,793
27,508
14
15,777
(3,716)
6,707
22
related party
Others
Associates of Woori Investment
& Securities Co., Ltd.
accounts
Loans
Provision for credit loss
Deposits
Other liabilities
Woori Aviva Life Insurance Co., Ltd.
Loans
Provision for credit loss
Deposits
Other liabilities
December 31, 2012
December 31, 2011
-
-
-
-
399
(5)
132
\
280 \
11,300
(17)
9,292
14
371
(3)
2,642
690
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(3) Gain or loss from transactions with related parties are as follows (Unit: korean won in millions):
related party
Ultimate
controlling party
(Government
related entity)
KDIC
Parent
WFH
Associates
Kumho Tires Co., Ltd.
accounts
Interest income
Interest expense
Bad debt expenses
(Reversal of provision for
credit loss)
Other income
Interest expense
Fees expense
Other expense
Interest income
Fees income
Other income
Interest expense
Fees expense
Bad debt expenses
(Reversal of provision for
credit loss)
Korea Finance Security Co., Ltd.
Interest expense
Reversal of provision for credit loss
Korea Credit Bureau Co., Ltd.
Interest expense
Woori Service Networks Co., Ltd.
Other income
Interest expense
Reversal of provision for credit loss
Woori Private Equity Fund and
subsidiaries
Fees income
Interest expense
United PF 1st corporate financial stability
Interest expense
December 31, 2012
December 31, 2011
\
30,544 \
4,301
(281)
2,273
10,983
48,987
183
1,011
7
22,661
114
-
(17,957)
110
(1)
70
15
60
-
21
49
73
63,186
7,218
457
2,066
7,184
52,751
100
1,036
1
7,215
58
4
3,180
60
(9)
65
14
31
(3)
-
14
-
170
171
woori bank 2012 annUaL rEPorT
related party
Associates
LIG E&C Co., Ltd.
Hyunjin Co., Ltd.
accounts
Interest income
Fees income
Interest expense
Fees expense
Reversal of provision for credit loss
Interest income
Fees income
Other income
Interest expense
Chin Hung International Inc.
Fees income
Reversal of provision for credit loss
Pi City Co., Ltd.
Interest expense
Bad debt expenses
Interest expense
Bad debt expenses
Orient Shipyard Co., Ltd.
Bad debt expenses
CNK Co., Ltd.
Interest expense
Bad debt expenses
Poonglim Industrial Co., Ltd.
Interest expense
Bad debt expenses
Others
Other subsidiaries of WFH
Interest income
Fees income
Other income
Interest expenses
Fees expenses
Bad debt expenses
Other expenses
Kyongnam Bank and subsidiaries
Fees income
Woori Investment &
Securities Co., Ltd. and subsidiaries
Other income
Interest expenses
Other expenses
Fees income
Other income
Interest expenses
Fees expenses
172
173
December 31, 2012
December 31, 2011
\
- \
-
69
-
(2)
-
-
-
246
(313)
1
44
30,315
9
69
1,332
5
868
137
416
2,413
3,657
7,600
849
75
57
55
2
111
6
(360)
374
4
4
689
(388)
-
-
-
-
-
-
-
-
-
-
-
648
1,815
8,628
822
134
227
224,999
214,536
172
22,341
13
23,081
306
4,948
30,797
-
-
24,203
63
18,352
17
12,411
1,386
414
Phoenix Digital Tech Co., Ltd.
Reversal of provision for credit loss
(3,307)
related party
Others
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accounts
December 31, 2012
December 31, 2011
Bad debt expenses
\
Other expenses
131 \
13,306
Woori Private Equity and subsidiaries
Interest income
Kwangju Bank
Fees income
Other income
Interest expenses
Fees expenses
Bad debt expenses
Other expenses
Interest income
Fees income
Other income
Interest expenses
Other expenses
Woori F&I Co., Ltd. and subsidiaries
Fees income
Other income
Interest expenses
Bad debt expenses
(Reversal of provision for
credit loss)
Other expenses
Associates of Woori F&I Co., Ltd.
Interest expenses
Associates of Woori Private Equity
Interest expenses
Associates of Woori Investment
& Securities Co., Ltd.
Bad debt expenses
Bad debt expenses
(Reversal of provision for
credit loss)
Interest expenses
Woori Aviva Life Insurance Co., Ltd.
Fees income
Other income
Interest expenses
Fees expenses
Bad debt expenses
110
1
1,873
626
-
1,279
4,799
7
47
207
1,030
282
54
-
1,146
(1)
31
377
286
36
(10)
-
15,590
148
-
-
2
336
4,895
1,299
-
1,918
707
11
72
1,512
3
-
1,972
967
1,027
53
193
996
1
315
332
142
3,716
17
126
14,893
135
13
25
3
172
173
woori bank 2012 annUaL rEPorT
(4) Guarantees provided to the related parties are as follows (Unit: korean won in millions):
KDIC
warranty
Loan commitment
December 31, 2012
December 31, 2011
\
2,000,000 \
1,000,000
Kumho Tires Co., Ltd.
Import credit in foreign currencies
Loan commitment
Hyunjin Co., Ltd.
Confirmed guarantees in local currency
Chin Hung International Inc.
Import credit in foreign currencies
Loan commitment
Orient Shipyard Co., Ltd.
Confirmed guarantees in foreign currency
Guarantee of loan payment
Phoenix Digital Tech Co., Ltd.
Loan commitment
Woori Investment & Securities Co., Ltd. Loan commitment
TY Second Asset Securitization
Specialty(*)
Confirmed guarantees in local currency
(Guarantee for debenture issuances)
Sempio Food Co., Ltd.(*)
Import credit in foreign currencies
Loan commitment in local currency
13,922
74,668
-
85
40,825
25,959
79,412
4,994
289,279
-
-
-
18,091
42,443
287
192
40,801
-
-
6,277
283,950
65
119,000
575
(*) TY Second Asset Securitization Specialty and Sempio Food Co., Ltd. are excluded from Group’s related party as of December 31, 2012 because these companies are excluded from
related party of Woori Investment & Securities Co., Ltd..
For the guarantee provided to the above related parties, the Group recognized provisions for guarantees amounting to \14,165 million and \514
million, respectively, as of December 31, 2012 and December 31, 2011.
(5) Details of compensation to key management are as follows (Unit: korean won in millions):
Salaries
Severance and retirement benefits
For the year ended
December 31, 2012
For the year ended
December 31, 2011
\
2,370 \
97
1,330
160
The key management represents non-executive directors and executive director. As of December 31, 2012 and 2011, loans from transactions with key
management are \519 million and \700 million, respectively. And payables to the key management are \1,639 million as of December 31, 2012.
174
175
43. cREDIT cARD DIvISIOn SPIn-OFF PlAn
(1) as of September 16, 2011, the board of directors of wFH and the Group decide to split off the Group’s credit card division
and establish a new credit card company to be a subsidiary of wFH. woori bank had acquired authorization about the split
off and the operation of credit card business from Financial Services Commission on February 22, 2013. Details of such spin off
are summarized as follows:
Transaction structure
Equity split off
Spin-off company
WooriBank (the surviving company)
Woori Card (the new company)
Spin-off schedule
Date of spin-off
The date of registration for spin-off
March 31, 2013
April 1, 2013
Date of the general meeting of shareholders for approval of the spin-off
January 25, 2013
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(2) Details of assets and liabilities transferred from the Group to woori Card are as follows (Unit: korean won in millions):
aSSETS:
Cash and cash equivalents
AFS financial assets
Loans and receivables
Premises and equipment
Intangible assets
Deferred tax assets
Other assets
Total assets
LiabiLiTiES:
Debentures
Provisions
Other financial liabilities
Other liabilities
Total liabilities
Gain (loss) on valuation of
Available-for-sale financial assets
December 31, 2012
59,178
58,283
4,211,719
4,338
6,257
46,671
33
4,386,479
2,699,022
74,621
493,715
69,121
3,336,479
15,645
\
\
\
\
\
174
175
woori bank 2012 annUaL rEPorT
(3) For the year ended December 31, 2012, the summarized financial information of credit card operating segment is as follows
(Unit: korean won in millions):
OPERATING INCOME:
Net operating income:
(1) Net interest income
(2) Net fees and commissions income
(3) Other income
Impairment losses for loans and others
General and administrative expense
NET NON-OPERATING LOSS
NET INCOME BEFORE INCOME TAX EXPENSE
INCOME TAX EXPENSE
NET INCOME
44. TRUST AccOUnTS
For the year ended
December 31, 2012
\
\
839,606
(338,112)
6,269
507,763
129,574
193,027
185,162
(931)
184,231
44,584
139,647
The financial information of the trust accounts have been prepared in accordance with K-IFRS 5004 'Trust agent's trust account' and enforce
regulations for the financial investment industry, which are based on capital market and financial investment business.
(1) Trust accounts of the Group are as follows (Unit: korean won in millions):
Trust
\
25,906,917 \
679,009 \
22,251,017 \
520,767
December 31, 2012
December 31, 2011
Total assets
operating revenue
Total assets
operating revenue
176
177
(2) Significant transactions between the Group and trust accounts are as follows (Unit: korean won in millions):
Revenue:
Trust fees
Intermediate termination fees
Sub-total
Expense:
Interest expenses on borrowings from trust accounts
Receivables
Trust fees receivables
Payables
Borrowings from trust accounts
Accrued interest expenses on borrowings from trust accounts
I
F
I
n
A
n
c
A
l
R
E
v
I
E
w
December 31, 2012
December 31, 2011
\
40,217 \
12
40,229
80,185
15,655
32,445
23
32,468
63,641
15,375
2,984,379
8,575
2,051,972
6,574
Sub-total
\
2,992,954 \
2,058,546
Principal protected trusts and both principal and interest protected trusts are as follows
1) The carrying value of The carrying value of principal protected trusts and both principal and interest protected trusts are as
follows were as follows (Unit: korean won in millions):
Trust accounts guaranteeing the
repayment of principal
Trust accounts guaranteeing a fixed
rate of return on, and the repayment
of principal
Monetary trusts
Old-age Pension Trusts
Personal Pension Trusts
Pension Trusts
Retirement Trusts
New Personal Pension Trusts
New Old-age Pension Trusts
Sub-total
Development Trusts
Unspecified Money Trusts
Sub-total
Total
December 31, 2012
December 31, 2011
\
7,052 \
564,723
507,573
90,963
10,093
6,184
8,811
594,555
456,159
254,824
10,946
8,507
1,186,588
1,333,802
24
874
898
25
867
892
\
1,187,486 \
1,334,694
2) as of December 31, 2012 and December 31, 2011, the amounts that the Group has to pay as a result of the operating results
of the principal protected trusts and the principal and interest protected trusts are as follows (Unit: korean won in millions):
Monetary trusts
December 31, 2012
December 31, 2011
Liabilities for the account (subsidy for trust account adjustment)
\
4 \
4
176
177
woori bank 2012 annUaL rEPorT
Organization
Chart
10 Units
10 Divisions
57 Departments
MAnAGEMEnT cOMMITTEE
lOAn cOMMITTEE
GEnERAl
SHAREHOlDERS MEETInG
BOARD OF DIREcTORS
PRESIDEnT & cHIEF
EXEcUTIvE OFFIcER
DEPUTY PRESIDEnT
ConSUMEr
bankinG
bUSinESS
UniT
CorPoraTE
bankinG
bUSinESS
UniT
SMaLL &
MEDiUM
CorPoraTE
bankinG
bUSinESS
UniT
inSTiTUTion-
aL bankinG
bUSinESS
UniT
GLobaL
bUSinESS
UniT
FinanCiaL
MarkET
bUSinESS
UniT
wEaLTH
ManaGE-
MEnT DiVi-
Sion
HoUSinG
FinanCE
DiViSion
inVESTMEnT
bankinG
DiViSion
Consumer
banking
Strategy Dept.
wealth
Management
Strategy Dept.
Housing
Finance Dept.
Corporate
banking
Product & Mar-
keting Dept.
investment
banking Dept.
affiliation
Product Dept.
Housing
Fund Dept.
Project Finance
Dept.
Corporate
banking Center
GM /
operation Team
Two Chairs
Gangnam
Center
Sales
Support
Dept.
Channel
Development
Dept.
Customer
Service Center
Sales Center
branch
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179
Small & Medium
Corporate bank-
ing Strategy
Dept.
Small & Medium
Corporate
banking
Support Center
institutional
Sales Strategy
Dept.
Public
Fund
Sales Dept.
international
banking Dept.
Settlement
Support Dept.
Treasury
Dept.
Trading
Dept.
Securities
Trading Dept.
overseas
branch
Merchant
banking
operation Team
inTErna-
TionaL TraDE
bUSinESS
DiViSion
international
Trade business
Dept.
international
Trade Service
Center
BOARD GOvERnAncE
cOMMITTEE
BOARD AUDIT cOMMITTEE
BOARD RISK
MAnAGEMEnT cOMMITTEE
BOARD cOMPEnSATIOn
cOMMITTEE
EXEcUTIvE RISK
MAnAGEMEnT cOMMITTEE
STAnDInG AUDIT cOMMITTEE
FinanCE &
ManaGE-
MEnT
PLanninG
UniT
HUMan
rESoUrCES
UniT
riSk
ManaGE-
MEnT
UniT
CrEDiT
SUPPorT
UniT
UbiQUiToUS
bankinG
DiViSion
PEnSion &
TrUST bUSi-
nESS DiViSion
MarkETinG
SUPPorT
DiViSion
iT SUPPorT
DiViSion
CorPoraTE
rESTrUCTUr-
inG DiViSion
oPEraTion &
SUPPorT
DiViSion
CoMPLianCE
oFFiCEr
Smart banking
Dept.
Trust Dept.
Synergy
Promotion
Dept.
iT Support
Dept.
Strategy &
Control Tower
Dept.
Human
resources Dept.
risk
Management
Dept.
Loan Policy
Dept.
Corporate
restoration
Dept.
General affairs
Dept.
Public
relations
Dept.
Ubiquitous
banking business
Dept.
retirement
Pension business
Dept.
Product
Engineering
Dept.
iT Compliance
Dept.
Finance &
Planning Dept.
Human
resources
Development
Dept.
Loan review
Dept.
retail Credit
analysis &
approval Dept.
Corporate
restructuring
Dept.
Loan Service
Center
Consumer
Protection
Center
Custody agent
Dept.
Card business
Promotion Dept.
accounting
Dept.
Employee
Satisfaction
Center
SME Credit
analysis &
approval Dept.
Large Corporate
Credit analysis &
approval Dept.
Credit
Management &
Collection Dept.
Corporate
recovery Dept.
Deposit Service
Center
Security
Control Dept.
Compliance
Dept.
audit Dept.
audit &
Management
inspection Dept.
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woori bank 2012 annUaL rEPorT
Global
Network
HEAD OFFIcE
51, Sogong-ro(Hoehyon-dong 1-ga),
Jung-gu, Seoul 100-792, Korea
Phone: +82-2-2002-3000
Swift: HVBKKRSE
OvERSEAS BRAncH
new York agency
245, Park Ave. 43rd Floor,
New York, NY 10167, USA
Phone: +1-212-949-1900
Fax: +1-212-490-7146
Swift: HVBKUS33
La br.
3360, West Olympic Blvd. Suite 300,
Los Angeles, CA 90019, USA
Phone: +1-213-620-0747~8
Fax: +1-213-627-5438
Swift: HVBKUS6L
London br.
9th Floor, 71 Fenchurch Street,
London, EC3M 4HD, UK
Phone: +44-207-680-0680
Fax: +44-207-481-8044
Swift: HVBKGB2L
Tokyo br.
Mitsui OSK Building,
2-1-1 Toranomon, Minato-ku,
Tokyo 105-0001, Japan
Phone: +81-3-3589-2351
Fax: +81-3-3589-2359
Hong kong br.
Suite 1401, Two Pacific Place,
88 Queensway, Hong Kong
Phone: +852-2521-8016
Fax: +852-2526-7458
Singapore br.
10 Marina Boulevard #13-05 MBFC Tower 2,
Singapore 018983 Singapore
Phone: +65-6223-5854~6
Fax: +65-6422-2000
Shanghai br.
23F, LJZ Plaza,1600 Century Avenue,
Pudong New Area, Shanghai, 200122, China
Phone: +86-21-5081-9556
Fax: +86-21-5081-9557
bahrain br.
P.O. Box 1151, 4th Floor, Entrance 1, Manama
Centre Building, Manama, Bahrain
Phone: +973-17-223503
Fax: +973-17-224429
Hanoi br.
11th Fl., Office Tower, Daeha Business Center 360
Kim Ma St., Ba Dinh Dist. Hanoi, Vietnam
Phone: +84-4-8315281
Fax: +84-4-8315271
Dhaka br.
Suvastu Imam Square (1st & 4th Fl.) 65 Gulshan
Avenue, Dhaka - 1212, Bangladesh
Phone: +880-2-881-3270~3
Fax: +880-2-881-3274/3241
180
181
DEPZ Customer Service Center
Dhaka Export Processing Zone(Old Area),
Ganakbari, Ssvar, Dhaka-1349, Bangladesh
Phone: +880-2-881-3270~3
Fax: +880-2-881-3274/3241
woori bank Chittangong Sub-branch
World Trade Center Chittagon(2nd Floor) Plopt
No.102-103, Agrabad Commercial Area,
Chittagong, Bangladesh
Phone: +880-0931-728221~4
Fax: +880-0931-728225
Gaeseong br.
Gaesong Industrial District Phase 1, 25 - 1 Business
Support Center, 1st Floor 103
1st Floor, Bongdong-Ri, Gaeseong, Hwanghae-Do,
North Korea
Phone: +001-8585-2300~2
Fax: +001-8585-2303
Hochiminh City br.
2 Floor, Kumho Asiana Plaza Saigon,
39 Le Duan St., Dist 1, HCMC, Vietnam
Phone: +84-8-3821-9839
Fax: +84-8-3821-9838
Chennai br.
6th Floor, EA Chambers, No. 49, 50L,
Whites Road, Royapettah, Chennai 600 014, India
Phone: +91-44-3346-6900
Fax: +91-44-3346-6995
Sydney br. temporary office
Suite 25.03, Level 25, 363 George Street
Sydney NSW 2000 Australia
Phone: +61-2-8222-2200
Fax: +61-2-8222-2299
SUBSIDIARY
U.S.a
woori america bank
1250 Broadway New York,
NY 10001, USA
Phone: +1-212-244-3000
Fax: +1-212-736-5929
woori america bank, broadway br.
1250 Broadway New York,
NY 10001, USA
Phone: +1-212-244-1500
Fax: +1-212-736-5929
woori america bank, Flushing br.
136-88 39th Avenue Flushing New York,
NY 11354, USA
Phone: +1-718-886-1988
Fax: +1-718-762-6898
woori america bank, Fort Lee br.
2053 Lemoine Avenue Fort Lee,
NJ 07024, USA
Phone: +1-201-363-9300
Fax: +1-201-302-0452
woori america bank, woodside br.
43-22 50th St.,
Woodside, NY 11377, USA
Phone: +1-718-429-1900
Fax: +1-718-429-2084
woori america bank, ridgefield br.
321 Broad Avenue #104 Ridgefield,
NJ 07657, USA
Phone: +1-201-941-9999
Fax: +1-201-941-4419
woori america bank, Main Street br.
183 Main Street Fort Lee,
NJ 07024, USA
Phone: +1-201-947-6666
Fax: +1-201-947-3226
woori america bank, Palisades Park br.
225 Broad Avenue Palisades Park,
NJ 07650, USA
Phone: +1-201-346-0055
Fax: +1-201-346-0075
woori america bank, Closter br.
234 Closter Dock Road Closter,
NJ 07624, USA
Phone: +1-201-784-7012
Fax: +1-201-784-7013
woori america bank, Elkins Park br.
7300 Old York Rd Elkins Park,
PA 19027, USA
Phone: +1-215-782-1100
Fax: +1-215-782-1500
woori america bank, annandale br.
Seoul Plaza 4231 Markeham St,.
Suite F Annandale, VA 22003, USA
Phone: +1-703-256-7633
Fax: +1-703-256-7511
woori america bank, bayside br.
215-10 Northern Blvd. Bayside,
NY 11361, USA
Phone: +1-718-224-3800
Fax: +1-718-224-3828
woori america bank, wheaton br.
11925 Georgia Ave.
Wheaton, MD 20902(Wheaton Park Shopping
Center), USA
Phone: +1-301-933-1175
Fax: +1-301-933-1560
woori america bank, wilshire br.
3540 Wilshire Blvd. Unit 104,
Los Angeles, CA 90010, USA
Phone: +1-213-382-8700
Fax: +1-213-382-8787
woori america bank, olympic br.
2610 W. Olympic Blvd.,
Los Angeles, CA 90006, USA
Phone: +1-213-738-1100
Fax: +1-213-738-1101
woori america bank, Fullerton br.
5731 Beach Blvd.,
Buena Park, CA 90621, USA
Phone: +1-714-521-3100
Fax: +1-714-521-3101
woori america bank, Garden Grove br.
10120 Garden Grove Blvd.,
Garden Grove, CA 92844, USA
Phone: +1-714-534-6300
Fax: +1-714-534-6301
woori america bank, Centreville br.
13830 A-12 Braddock Road,
Centreville, VA 20121, USA
Phone: +1-703-988-9555
Fax: +1-703-988-9554
CHina
woori bank (China) Ltd.
26F, Tower A, Tianyuangang Centre, C2, North
Road, East Third Ring Road, Chaoyang District,
Beijing, 100027, China
Phone: +86-10-8412-3000
Fax: +86-10-8440-0698
woori bank (China) Ltd., Head office
business department
1F, Tower A, Tianyuangang Centre, C2, North
Road, East Third Ring Road, Chaoyang District,
Beijing, 100027, China
Phone: +86-10-8441-7771
Fax: +86-10-8446-4631
woori bank (China) Ltd., beijing br.
1F, West Tower, Twin Towers, B-12 Jianguomenwai
Avenue, Chaoyang District, Beijing,
100022, China
Phone: +86-10-8453-8880
Fax: +86-10-8453-8881
woori bank (China) Ltd., Shanghai br.
Drum Building 1-2F, Pos- Plaza, 1600 Century
Avenue, Pudong New Area, Shanghai, 200122, China
Phone: +86-21-5081-0707
Fax: +86-21-5081-2484
woori bank (China) Ltd., Shenzhen br.
B0105, B0210 Rongchao Landmark, 4028 Jintian
Road, Futian District, Shenzhen, China
Phone: +86-755-3338-1234
Fax: +86-755-3338-7227
woori bank (China) Ltd., Suzhou br.
101B, Sovereign Building, #8 Suhua Road,
Suzhou Industrial Park, Jiangsu, China
Phone: +86-512-6295-0777
Fax: +86-512-6295-2141
woori bank (China) Ltd., TianJin br.
No. 1 Building, Aocheng Commercial Square,
Binshui West Road, Nankai District, Tianjin,
300381, China
Phone: +86-22-2338-8008
Fax: +86-22-2392-5905
woori bank (China) Ltd., Shanghai Puxi Sub-br.
S115-S119, 1/F Maxdo center NO.8 Xing Yi Rd.
Hong Qiao Development Zone Shanghai,
200336, China
Phone: +86-21-6235-1717
Fax: +86-21-6235-1036
woori bank (China) Ltd., beijing wangjing Sub-br.
1F, No 10, Furong Street, Chaoyang District,
Beijing, 100102, China
Phone: +86-10-8471-8866
Fax: +86-10-8471-5245
woori bank (China) Ltd., Shanghai
wuzhonglu Sub-br.
1C, Liaoshen Building, 1068 Wuzhong Rd.
Minhang Distrct, Shanghai, 200336, China
Phone: +86-21-6446-7887
Fax: +86-21-6446-1200
woori bank (China) Ltd., Shenzhen Futian Sub-br.
Room 107, 201, Daqing Building, No. 6027, Shen
Nan Road, Futian District, Shenzhen, China
Phone: +86-755-8826-9000
Fax: +86-755-8826-9038
woori bank (China) Ltd., Shanghai
Jinxiujiangnan Sub-br.
1F, 188 South Jinhui Road, Minhang District,
Shanghai, 200237, China
Phone: +86-21-3432-1116
Fax: +86-21-3432-1112
woori bank (China) Ltd., beijing Shunyi Sub-br.
1F, Tower A, AMB Building, 2, Cangshang St,
Shunyi District, 101300, China
Phone: +86-10-8945-2220
Fax: +86-10-8949-3560
woori bank (China) Ltd., DaLian br.
YOMA IFC, No.128 Jinma Road, Dalian Development
Area, Dalian, 116600, P.R. China
Phone: +86-411-8765-8000
Fax: +86-411-8765-8515
woori bank (China) Ltd., Zhangjiagang Sub-br.
11 Renmin East Road, Zhangjiagang, 215600, China
Phone: +86-512-5636-6696
Fax: +86-512-5636-6697
woori bank (China) Ltd., Chengdu br.
Unit 1of 1F, Unit 3-6 of 3F, Zhonghui Plaza(Phase II)
No. 1 Renmin South Road, Chengdu, 610044, China
Phone: +86-28-6557-2366
Fax: +86-28-6357-2369
Swift: HVBKCNBJ
inDonESia
P.T.bank woori indonesia
16th Fl., Jakarta Stock Exchange Bldg., JL. Jend
Sudirman Kav.52-53, Jakarta 12190, Indonesia
Phone: +62-21-515-1919
Fax: +62-21-515-1477
Swift: HVBKIDJA
Tangerang Sub-branch office
Ruko Pinangsia Blok H No.1 Lippo
Karawaci-Tangerang 15139, Indonesia
Phone: +62-21-5577-2345
Fax: +62-21-5577-6363
Swift: HVBKIDJA
Cikarang Sub-branch office
Cikarang Commercial Center Block A1~A2, J1
Cikarang-Cibarusah KM.40 No.2, Cikarang Selatan
Bekasi., Indonesia
Phone: +62-21-8983-5270
Fax: +62-21- 8983-5271
Swift: HVBKIDJA
Cibubur Sub-branch office
Cibubr Time Square Blok B1/1(3 floors)
Jatisampurna Bekasi, Indonesia
Phone: +62-21-8430-5050
Fax: +62-21-8430-5353
Swift: HVBKIDJA
krakatau Posco Sub-branch office
Jl. Afrika No.2 Krakatau Industrial Estate,
Chilegon 42443, Indonesia
Phone: +62-25-436-9755
Fax: +62-25-436-9759
Swift: HVBKIDJA
PT bank woori indonesia bekasi Sub branch
JL. Niaga raya, Block P no.22C, Kompleks Perumahan
Kemang Pratama, Bakasi, Jawa Barat, Indonesia
Phone: +62-21-8240-4282
Fax: +62-21-8240-2284
Swift: HVBKIDJA
HonGkonG
woori Global Market asia Limited
Rooms 1905-1908, 19/F, Gloucester Tower, The
Landmark,15 Queen’s Road Central, Hong Kong
Phone: +852-3763-0888
Fax: +852-3763-0808
rUSSia
Zao woori bank
8th floor, Lotte Plaza, 8, Novinsky Boulevard,
Moscow, 121099, Russia
Phone: +7-495-783-9787
Fax: +7-495-783-9788
Zao woori bank Saint-Petersburg br.
1st Floor, Atlantic City, 126 Savushkina Street,
Saint-Petersburg, 197374, Russia
Phone: +7-812-327-9787
Fax: +7-812-327-9789
braZiL(braSiL)
woori bank brasil
Avenida Nacoes Unidas, 14,171, Crystal Tower,
Conj.803, Vila Gertrudes, 04794-000,
Sao Paulo-SP, Brasil
Phone: +55-11-2309-4740
Fax: +55-11-3511-3300
OvERSEAS OFFIcE
MaLaYSia
woori bank kuala Lumpur representative office
Suite 3A-2, Level 3A, Menara IMC, 8, Jalan Sultan
Ismail, 50250, Kuala Lumpur, Malaysia
Phone: +603-2078-0688
Fax: +603-2072-0688
UaE
woori bank Dubai representative office
#619, Level 6, Liberty House. DIFC, P.O.Box
506760, Dubai, U.A.E.
Phone: +971-4-325-8365
Fax: +971-4-325-8366
MYanMar
woori bank Yangon, Myanmar
No. 0307, 3rd Floor, Sakura Tower, 339 Bogyoke
Aung Sand Road, Kyauktada Township, Yangon
Myanmar
Phone: +95-94-2530-9391
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woori bank 2012 annUaL rEPorT
Woori Bank
pioneers to
play genuine
roles in
finance!
182
183
ConTaCT inForMaTion
Directed by
Kim, Eun Kyung(Christine)
IR Manager, tel: 82-2-2002-3186,
ekk@wooribank.com
Choi, Won Woo
Assistant IR Manager, tel: 82-2-2002-4731,
wwchoi@wooribank.com
Created by
Lucre Beyond Inc.
Kim, Hyun Soo
Art Director, tel: 82-2-542-6725,
www.lucrebeyond.com
51, Sogong-ro(Hoehyon-dong 1-ga), Jung-gu, Seoul 100-792, Korea Tel. +82-2-2002-3000 www.wooribank.com