w o o r i b a n k
an n u a l r e p o r t
2 0 1 5
Woori Bank
WIll BEE
your
lifetime partner!
t a b l e o f c o n t e n t s
Woori Internet BEE Bank
A mobile world of our dreams! Woori Bank marks the start of a new era of financial
services with the Blue Bee, WiBee, providing more convenient and diverse banking
services as sweet as honey anytime, anywhere via smartphones.
03
Woori Story
Message from the Ceo ___ 020
Company Structure ___ 024
Financial Highlights ___ 025
board of Directors & Management ___ 026
Corporate Governance ___ 028
news Highlights ___ 030
woori bank awards 2015 ___ 032
34
Reliable Partner
Smart banking ___ 036
risk Management ___ 038
employee Satisfaction ___ 041
Consumer protection ___ 044
46
Leading Partner
Global business ___ 048
investment banking ___ 051
Financial Market business ___ 053
international trade business ___ 056
Strong Partner
Consumer banking ___ 060
wealth Management ___ 063
pension & trust business ___ 065
Corporate banking ___ 067
SMe banking ___ 069
institutional banking ___ 072
real estate Finance ___ 074
Sincere Partner
Social Contribution activities ___ 078
woori Smile Microcredit ___ 080
ethical Management ___ 082
58
76
84
Financial Review
Management’s Discussion and analysis ___ 085
independent auditor report ___ 096
Financial Statements ___ 98
organizational Chart ___ 192
Global network ___ 194
w o o r i s t o r y
Woori Bank
WIll BEE
your
lifetime partner!
Over the past 117 years, Woori Bank has always been there for our custom-
ers at important moments in history.
Being the oldest Korean bank, Woori Bank went through numerous difficulties
and challenges at home and abroad in order to emerge from the past, stand
strong in the present and look towards the brighter future, thereby always be-
ing there for our customers as a lifetime partner to help them at all times.
Woori Bank has been a step ahead of our competitors as a leader of the fi-
nancial market in 2015. We opened new possibilities by successfully launch-
ing the 1st mobile bank ‘WiBee Bank’ to open a new mid-level interest rate
loan market, as well as leading the effort to cultivate innovative markets for
FinTech as an internet bank.
In order to provide the most convenient and safest financial services for
our customers, we will strive to bring innovations in the FinTech sector and
achieve further growth to ensure that happiness and satisfaction of our cus-
tomers and shareholders comes 1st out of all priorities.
In order to respond to the changes in the financial environment, Woori Bank
will stand firm as a strong bank that brings changes and innovations to the
financial markets, while always being there for our customers and contribut-
ing to achieving further growth for our domestic and global customers.
W
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Woori Bank has always been there for
our customers as a reliable partner
protecting and supporting them
in good times and bad.
reliable Partner
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c u s t o m e r s t o r i e s
Hatvit
Women's Hospital
Hyeongshin Han, Doctor
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Like Hatvit Women's Hospital’s goal of touching people’s hearts and to be there for
our children in the future, Woori Bank is a reliable partner for a brighter future.
Woori Bank
annual report 2015
6
c u s t o m e r s t o r i e s
Woori Bank has been our partner in helping us to
take care of people and female patients as well as
leading responsible lives as female physicians.
Hatvit Women’s Hospital aims to become a hospital that takes care of patients professionally, while
also satisfying customer needs for medical care. The hospital needed to move to another location for
its patients and Woori Bank helped by providing funds.
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• ‘Hatvit’ symbolizes ‘women and
babies’, ‘birth’, ‘beginnings’ and
‘warmth’. In this way, the hospital is
filled with warm sunshine and natural
LED lights are installed throughout the
hospital for new babies.
• Hatvit Women’s Hospital aims to heal
by becoming a leading hospital with
reputable physicians who take good
care of female patients.
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Woori Bank
annual report 2015
7
Woori Bank dreams of leading our customers
to a better quality in life, and thereby, serves
as a partner that enhances their financial,
physical and spiritual well-being.
Leading Partner
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c u s t o m e r s t o r i e s
Hyehwadong
Catholic Church
Fr. Alfredo Africa, MSP
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Woori Bank provides the best financial services that match the life patterns of foreign
workers, and we strive to lead in offering more convenient financial services for
our customers anytime, anywhere.
Woori Bank
annual report 2015
10
c u s t o m e r s t o r i e s
Woori Bank makes customers feel at home by
always greeting them with a friendly vibe and
being there for customers anytime, anywhere.
Woori Bank’s Hyehwadong Branch became more active after the Philippine Catholic Priest Fredo
from the Hyehwadong Catholic Church gave a mass in Tagalog. In order to help customers from the
Philippines who cannot come to the bank during weekdays because of their busy schedules, we offer
convenient remittance services for living expenses to families in the Philippines on Sundays.
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• Every Sunday, there are lots of
customers at the branch with about
one thousand people gathering at the
market near the Hyehwadong area.
Woori Bank pays attention to ensuring
customer convenience by posting the
exchange rates so that they are visible
from a distance.
• Woori Bank is Korea’s only bank
to establish a close relationship with
Metrobank in the Philippines and
operate as a competitor and a client
company.
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Woori Bank
annual report 2015
11
!
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Woori Bank acts as a strong partner in supporting
Korean companies to achieve intense development
domestically and abroad and thereby contributes to
the continuous development of the Korean economy
as a whole.
Strong Partner
c u s t o m e r s t o r i e s
BMT inc.
Jongchan Yoon, CEO
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Woori Bank has developed together with the nation and our customers,
and we will always be there for our customers in the future to provide help
when needed.
Woori Bank
annual report 2015
14
c u s t o m e r s t o r i e s
Woori Bank has continuously stood by korean
companies to help them during difficult times.
Bank transactions are the same as transaction between people. Woori Bank greets customers warmly
with the mindset of helping them as much as possible. Woori Bank has helped Korean companies to
take a leap forward as they enter into new markets. Therefore, the relationship between the bank and
our clients has been satisfactory and results in win-win cooperation. Korean companies will continue
to take a leap forward in the future with the help of Woori Bank.
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• Manufacturing companies make valves,
industrial fittings and valves that are used
as the connecting link in many components
in the fields of Korea’s leading advanced
industries today, including automobiles,
aerospace and semiconductors.
• Superlok i-fittings used as semiconductor
fittings are high-precision products that
received recognition by introducing
innovative technology. The technology
enhances competitiveness allowing
companies to grow and evolve.
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Woori Bank
annual report 2015
15
!
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Woori Bank aims to become a sincere partner
by fulfilling our social responsibilities warm
heartedly so that we can become one in heart to
dream for a better future.
Sincere Partner
c u s t o m e r s t o r i e s
Good neighbors
Ilha Yi, President
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In order to ensure a better tomorrow, Woori Bank has been a partner in conducting
meaningful projects. Woori Bank fulfills its social responsibilities with the world-famous
NGO Good Neighbors to help develop the future together.
Woori Bank
annual report 2015
18
c u s t o m e r s t o r i e s
Woori Bank has been a sincere partner for
Good neighbors.
Good Neighbors was established in 1991 and it has built a trusting relationship with Woori Bank. Woori
Bank jointly implemented a campaign for supporting those children who were raised in crisis family
to ensure children are well taken care of, while also making efforts in promoting a culture of donation
amongst customers. Moreover, Woori Bank has become a sincere partner for Good Neighbors by
supporting remittances for international development cooperation projects taking place overseas in
37 countries. Good Neighbors hopes to maintain a good relationship with Woori Bank in the future.
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• Good Neighbors was founded in Korea
and has implemented social welfare projects
and international development cooperation
projects to create a better world and
promote healthy changes for our children,
families and local communities domestically
and internationally.
• Good Neighbors not only helps and
respects people by allowing them to make
a better living, but also strives to create a
world where people carry out their role of
helping others and sharing a better future
with good neighbors around the world.
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Support Good Neighbors by calling 1544-7944 / www.goodneighbors.kr
Woori Bank
annual report 2015
19
me s s a g e f r o m t h e c e o
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Message
from
the CEo
Woori Bank has led change and
innovation in the korean financial
market by leading ‘half a step’ ahead of
the competition in 2015.
/
Lee, Kwang goo
president and ceo of woori bank
Woori Bank
annual report 2015
20
Strength
in our Values
/
I would like to express my sincere appreciation to all of our shareholders and custom-
ers for their continued support and commitment to Woori Bank.
In 2015, due to global market volatility and risks including the economic recession
in China and emerging market countries, ultra-low oil prices and the US interest rate
hike, as well as the prolonged period of low interest rates and low growth, Korea ex-
perienced an economic slump that made the market environment for all industries
very difficult. Despite such circumstances, Woori Bank recorded notable achieve-
ments compared with previous years, by having all employees striving to achieve the
goal of ‘enhancing Woori Bank’s corporate value’.
We vastly improved the financial performance index for growth, profitability and fi-
nancial soundness.
In 2015, Woori Bank’s total assets continued to exhibit a high level of growth com-
pared with other banks, totaling KRW 318 trillion with an increase of about KRW 26
trillion. Moreover, soundness indicators, such as NPL ratio, debt expense and coverage
ratio improved significantly. As a result, we were able to achieve an asset soundness
level similar to our competitors, which had been a sticking point in enhancing Woori
Bank’s corporate value for several years.
In terms of profitability, even though there was a major downside in the interest mar-
gins due to the benchmark interest rate being cut four times over a two-year period,
we achieved better results than estimates for net interest income and non-interest
income, by overcoming such obstacles with strong sales capacity in the field.
As the FinTech (finance technology) sector is growing rapidly and a paradigm shift in
the financial world takes place through ICT convergence, Woori Bank has led change
and innovation in the Korean financial market by leading ‘half a step’ ahead of the
competition in 2015.
Maintained long-term major creditor bank
relationships with Korea’s leading large
corporates and supported them in their
trajectories toward global prominence.
In May 2015, Woori Bank successfully launched Korea’s first mobile bank ‘WiBee Bank’
to promote the mid-level interest rate loan market. In November 2015, we took the
lead in innovating the FinTech market, including actively participating, establishing
and receiving preliminary approval for a consortium to launch an internet bank.
As for global competitiveness, Woori Bank expanded the number of its overseas
networks to 205 and became Korea’s no. 1 bank as of the end of 2015, mainly due to
successfully launching Woori Saudara Bank in Indonesia. Moreover we established
micro finance institutions in Cambodia and Myanmar, thereby fostering future growth
engines to join the ranks of ‘Asia’s Top 10, Global Top 50’ banks.
The year 2015 was a significant year for Woori Bank because we gained a competitive
edge in all areas despite fierce inter-bank competition, and established the founda-
tion for continuous future growth by taking the lead in FinTech and global markets.
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Based on outstanding performance in 2015, Woori Bank will strive to make 2016 the
first year of successful privatization. Woori Bank has decided on ‘Becoming a Strong
Bank’ as our management goal, and hopes to achieve profitable growth through five
management strategies.
First, in order to maintain market dominance in all areas, we ranked No.1 in increasing
performance in all categories. In particular, we will further enhance our non-interest
income by focusing on the asset management and retirement markets, with Individu-
al Savings Accounts (ISA) introduced for the first time this year.
Second, we will become a Clean Bank that achieves high-quality asset growth and
minimize the occurrence of NPLs by thoroughly implementing the process of ‘Locking
the Back Door’ in 2016. In order to raise capital adequacy ratio (including Common
Equity Tier 1 ratio) which exhibits a wider gap with other banks due to excessive bad
debt expenses from the past, we will implement a mid-to-long-term improvement
strategy by minimizing the growth of Risk Weighted Assets, Credit Costs and SG&A
Expenses while maximizing revenue and maintaining an adequate dividend rate to
sufficiently improve and minimize the gap with our competitors.
My life,
with Woori Bank
Third, we added an online marketplace and community function to WiBee Bank and
WiBee Talk platforms so that they can be expanded into a lifestyle products amongst
banks, for customers and companies, thereby actively utilizing the new platform for
marketing activities. In 2016, Woori Bank will take the lead in the innovative FinTech
market and seek new business opportunities linked with the banking sector.
Fourth, in order to overcome limitations in the saturated domestic market, we will
focus on the Southeast Asian market to grow our presence to 300 global networks
and launch both WiBee Bank and a card business with the know-how accumulated
from experience in the domestic market, thereby diversifying the sources of income
through retail sales in overseas markets.
Fifth, in order to enhance organizational productivity, we will optimize branches and
improve the operational efficiency of our workforce, ensuring that all employees can
work to the utmost of their capabilities.
By implementing these five management strategies, Woori Bank will strive to achieve
further growth and become a bank that places customer and shareholder happiness
and satisfaction as our top priority.
Over the past 117 years of Woori Bank’s history, 2016 is, in particular, the year of ut-
most importance, as it will be the year of successful privatization of Woori Bank.
Based on this, the year 2016 will be a historic year for taking another leap forward as
a group providing comprehensive financial services.
In 2016, Woori Bank’s employees will work toward becoming a strong bank with the
mindset of a second startup. We ask for continued support and commitment from
our customers and shareholders.
I sincerely wish you and your family good health and happiness.
Thank you.
As for global competitiveness, Woori Bank increased
the number of its overseas networks to 205 and
became the no. 1 Korean bank as of the end of 2015,
cultivating future growth engines to become one of
'Asia's Top 10, Global Top 50 Bank' by 2020.
Woori Bank
annual report 2015
23
c o m p a n y s t r u c t u r e
Company Structure
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Privatization oF Woori BanK in ProgreSS
On July 21, 2015, in order to maximize the recovery of public funds, achieve timely privatization and contribute to
the development of the Korean financial industry, the Public Fund Oversight Committee passed the agenda on the
implementation in setting the direction for the privatization of Woori Bank, including matters on the disposal of
controlling interests and the disposal of shares owned by majority shareholders. The government plans to conduct
the disposal as soon as possible. The specific disposal method and schedule will be discussed later on at a Public
Fund Oversight Committee.
Also, on October 2, 2015, the Financial Services Commission announced plans for taking steps to enhance the
MOU on the normalization of bank management, aiming to improve corporate value through the expansion of
Woori Bank’s managerial autonomy.
The Financial Services Commission and the Korea Deposit Insurance Corporation will do their best to successfully
complete the privatization of Woori Bank by promptly following up on enhancing the MOU by revising the En-
forcement Decree of the Special Act on the Management of Public Funds for the future.
PreSent StatuS oF Woori BanK’S SuBSidiarieS
DomEstIC
WOORI
CARD
100%
WOORI
INvESTMENT
BANK
(MERCHANT
BANK)
58.15%
IntErnatIonal
WOORI
FIS
WOORI FINANCE
RESEARCH
INSTITUTE
WOORI CREDIT
INFORMATION
WOORI FUND
SERvICE
WOORI
PE
100%
100%
100%
100%
100%
WOORI
AMERICA BANK
WOORI BANK
(CHINA) LTD
PT BANK WOORI
SAUDARA INDONESIA
1906 TBK
WOORI GLOBAL
MARKET ASIA
LIMITED
(HONG KONG)
ZAO
WOORI BANK
WOORI BANK
BRASIL
WOORI FINANCE
CAMBODIA PLC
WOORI FINANCE
MyANMAR PLC
(RUSSIA)
(BRAZIL)
100%
100%
74.0%
100%
100%
100%
100%
100%
Woori Bank
annual report 2015
24
f i n a n c i a l h i g h l i g h t s
Financial Highlights
LoanS in Won
(unit: krw trillion)
woori bank consolidated basis (k-ifrs)
note 1) total assets include trust account
loanS in won total aSSetS1)
net income
(unit: krw billion)
woori bank consolidated basis (k-ifrs)
net income(continuing operations) attributable to controlling interests
note 1) profit / loss related to spun-off or sold subsidiaries
+10.7%
2015
2014
185.2
317.9
167.3
291.9
+143.4%
2015
2014
435
1,059
7791)
dePoSitS
(unit: krw trillion)
DepoSitS
total liabilitieS
+10.9%
2015
2014
209.1
272.5
188.5
252.1
roa / roe
(unit: %)
note 1) eXcluding one-off factors related to the sale and the spin
off of subsidiaries (including one off factors, roa 0.41, roe 7.06)
roa roe
0.37
2015
0.211)
2014
5.69
3.551)
aSSet QuaLity
(unit: %)
npl ratio
npl CoveraGe ratio1)
note 1) (loan loss reserve + allowance for accrued revenue +
regulatory reserve for credit loss) / substandard and below loans
*4 shipbuilders: sungdong shipbuilding & marine engineering, spp shipbuilding,
daesun shipbuilding & engineering, stX offshore & shipbuilding
BiS ratio
(unit: %)
biS ratio tier 1 ratio CoMMon equity ratio
baSel iii baSiS
note 1) eXcluding the impact on rwa from the new inclusion of
5 subsidiaries((woori card, woori investment bank, woori fis,
woori finance research institute, woori pe) caused by the merger
with woori financial holdings
1.47
(exCluDinG 4 SHipbuilDerS* 1.24)
122.3
8.5(9.41))
10.4(11.61))
13.7(15.21))
2015
2014
2.10
(exCluDinG 4 SHipbuilDerS* 1.62)
97.2
2015
2014
9.0(9.91))
10.7(11.81))
14.3(15.71))
Woori Bank
annual report 2015
25
bo a r d o f di r e c t o r s
Board of Directors &
Management
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Woori Bank
annual report 2015
26
bo a r d o f di r e c t o r s
Standing directorS
lee, Kwang Goo
49th President & Chief Executive Officer
• Executive Vice President, Consumer Banking Business Unit, Woori Bank
• Executive Vice President, Finance & Management Planning Unit, Woori Bank
• Head, Gwangjin-Seongdong Sales Center, Woori Bank
• General Manager, Consumer Banking Strategy Dept., Woori Bank
• Chief Executive, Woori Global Markets Asia Ltd.(Hong Kong)
• General Manager, Card Strategy Dept., Woori Bank
• General Manager, Consumer Banking Marketing Dept., Woori Bank
• B.A. in Business Administration, Sogang University
Chung, soo Kyung
Standing Audit Committee Member / Director
• Local Government Dispute Mediation Committee Member, Ministry of the Interior
• Financial Disputes Settlement Committee Member, Financial Supervisory Service
• Financial Consumer Panel Committee Member, Financial Supervisory Service
• Deputy Executive Director, Korean Bar Association
• Registered Lawyer / Attorney
• Registered Certified Public Tax Accountant and Patent Attorney
• B.A. in English Language and Literature, Sungkyunkwan University
lee, Dong Gun
Head of Group, Executive vice President / Director
• (Current) Head, Business Support Group & Executive Vice President, Woori Bank
• Deputy President / Director, Woori Bank
• Executive Vice President, Credit Support Unit, Woori Bank
• Executive Vice President, Operation & Support Unit, Woori Bank
• Managing Director (CIO), Channel Support Division, Woori Bank
• Head, Gangnamjungang Corporate Banking Center, Woori Bank
• General Manager, International Trade Business Division, Woori Bank
• M.A. in Financial Economics, Graduate School of Economics, Yonsei University
• B.A. in Business Administration, Yeungnam University
nam, Ki myung
Head of Group, Executive vice President / Director
• (Current) Head, Domestic Business Group & Executive Vice President,
Consumer Banking Business Unit, Woori Bank
• Executive Vice President, Consumer Banking Business Unit, Woori Bank
• Executive Vice President, Finance & Management Planning Unit, Woori Bank
• Managing Director, International Trade Business Division, Woori Bank
• Head, Gangdong Seongnam Sales Center, Woori Bank
• General Manager, Sales Support Dept., Woori Bank
• Univ. of Michigan, Ann Arbor MBA
• B.A. in Business Administration, Seoul National University
outSide directorS
Hong, Il Hwa
• (Current) Standing Advisor, Women’s Newspaper Women & People
• Outside Director, Korea Development Bank(KDB)
• President, Korea-Romania Friendship Society
• M.A. in Public Policy, Kookmin University Graduate School of Public Administration
• B.A. in Economics, Kookmin University
Chun, He suk
• (Current) Professor of Economics, Cheongju University
• Vice President, Merrill Lynch, New York, Investment Advisory Company
• Acting General Manager, New York Branch, Kookmin Bank
• M.A. in Business Administration / Ph.D. in Economics, George Washington Univ.
• B.A. in Biology, Yonsei University
Jung, Han Gi
• Visiting Professor of Liberal Arts, Hoseo University
• Visiting Professor of Business Administration, Sogang University
• CEO/President, Eugene Asset Management
• Corporate Business Head (Managing Director), NH Investment & Securities
• M.A. in Business Administration, Graduate School of Business, Sogang University
• B.A. in Political Science, Sogang University
lee, Ho Geun
• (Current) Professor of Business Administration, Yonsei University
• Assistant Professor of Management Information Systems, School of Business
Administration, Hong Kong University of Science and Technology
• Visiting Professor of Business Administration, Erasmus University Rotterdam
• Ph.D. in Business Administration, University of Texas at Austin
• M.A. in Management Science, Korea Advanced Institute of Science and Technology
• B.A. in Industrial Engineering, Seoul National University
Koh, sung soo
• (Current) President and Professor of Konkuk University Graduate School of Real Estate
• Research Fellow, Korea Institute of Finance
• M.A./Ph.D. in Economics, Cornell Graduate School
• M.A. in Business Administration, Columbia University
• B.A. in Business Administration, Yonsei University
Kim, sung Yong
• (Current) Professor at Sungkyunkwan University Law School
• Representative Attorney at Law Firm Woo Hyun
• Attorney at Law Firm Lee & Ko
• Passed the 29th Korean Bar Exam
• M.A. in Law, University of Pennsylvania Law School
• B.A. in Law, Seoul National University
non-Standing director
Choi, Kwang Woo
• (Current) Head, Office of Public Relations, Korea Deposit Insurance Corporation
• Head, Office of Fund Operation and Investment, Korea Deposit Insurance Corporation
• Head, Office of Customer Value Management Support, Korea Deposit Insurance Corporation
• M.A. in Business Administration, Korea University
• B.A. in Business Administration, Korea University
executive vice PreSident
sohn, tae seung
Head, Global Business Group & Executive Vice President, Global Business Unit
Jeong, Won Jai
Corporate Banking Business Unit
Chae, Woo seok
Small & Medium Corporate Banking Business Unit
lee, Dong Bin
Credit Support Unit
Kim, Hong Hee
Real Estate Finance Business Unit
Choi, Jung Hoon
Risk Management Unit
Cho, Jae Hyun
Smart Banking Unit
Kim, Hong Koo
Investment Banking Business Unit
Kim, Jai Won
Institutional Banking Business Unit
Woori Bank
annual report 2015
27
c o r p o r a t e go v e r n a n c e
Corporate Governance
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at the end of March 2016, woori bank’s board of Directors consisted of 11 executive directors: four standing
directors, one non-standing director and six outside directors, who were appointed to increase the relevant
expertise and independence of the board. the six outside directors and one non-standing director 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, as well as monitor, woori bank’s
strategic decision-making and overall business affairs on a regular basis.
Review of 2015
The Board held 18 meetings in 2015 to discuss a total
of 41 pending issues and conduct 35 briefings for the
ment records and they conducted regular inspections
of the group’s management. The major agenda of the
discussions included: reports on the submission of plans
for the implementation of the Memorandum of Under-
purposes of decision-making and deliberation, and
standing (MOU) signed with the Financial Supervisory
the overall attendance rate of outside directors was
Service (FSS); the results and details of the MOU imple-
97%. Directors from various fields collected informa-
mentation with the Korea Deposit Insurance Corporation
tion through internal and external activities, and then
(KDIC); plans to issue foreign currency-denominated
offered real-world advice by utilizing their expertise to
bonds; comprehensive briefings regarding major loans;
contribute significantly to improving management. This
briefings on NPLs; reviews of the orders implemented by
photo shows that they promoted effective bank man-
the Board of Directors, as well as discussions concerning
agement and maximized shareholder value, by con-
the outcome of reviews and a rundown of the activities
ducting Board meetings founded on discussions with
of various committees under the Board of Directors. At
experts in various fields, including economics and law.
the December meeting, the Board also held in-depth
At the quarterly meeting in 2015, there was consensus
continuing market changes, such as the confirmation of
among the board in regards to the quarterly manage-
the Bank’s 2016 draft management plan.
discussions about major issues facing Woori Bank, amid
Woori Bank
annual report 2015
28
c o r p o r a t e go v e r n a n c e
Committees under
the board of directors
In order to ensure the efficient operation of the Board
of Directors, Woori Bank has established the Board of
Governance Committee, the Board Audit Committee,
the Board Risk Management Committee, the Board
Compensation Committee, the Officer Candidate Rec-
ommendation Committee, the Outside Director Candi-
date Recommendation Committee and the Audit Com-
mittee Member Recommendation Committee.
Board of Governance Committee
The Board of Governance Committee actively supports the
activities of the Board of Directors by studying and review-
ing the overall function and operation of the Board, as well
as establishing and reviewing the succession and training
Board Compensation Committee
The Board Compensation Committee monitors the de-
sign and operation of the Bank’s performance-based
compensation systems and is in charge of independent-
ly establishing compensation policies.
officer Candidate recommendation Committee
The Officer Candidate Recommendation Committee
recommends candidates for the position of CEO.
outside Director Candidate recommendation
Committee
The Outside Director Candidate Recommendation Com-
mittee recommends candidates for outside directors.
audit Committee member recommendation
Committee
The Audit Committee Member Recommendation Com-
plans of the management team including directors.
mittee recommends candidates for the Audit Commit-
tee.
Board audit Committee
The Board Audit Committee establishes and executes
internal audit plans, makes outcome evaluations, imple-
ments follow-up measures and provides improvement
plans to evaluate and enhance the appropriateness of
the internal control system and management perfor-
mance measures.
Board risk management Committee
The Board Risk Management Committee makes de-
Plans for 2016
In 2016, Woori Bank will make significant improvements
to its management by discussing major agenda items
at the Board meetings. At the end of March 2016, the
Board of Directors had already met four times. After
March, the quarterly Board meetings will continue to
cisions about risk-related policies and strategies in
focus on agenda items such as the analysis of manage-
response to changes in the financial environment. The
ment performances and the 2017 draft management
Committee meets at least once every quarter, or on an
plan, with ad hoc meetings also being held whenever
ad hoc basis to deliberate on risk management strat-
needed to deal with agenda items related to various
egies and policies, risk tolerance levels and exposures,
matters, such as management goals, organization and
thereby discerning, measuring and monitoring overall
financing. In 2016, Woori Bank will act as a reliable part-
risks arising from the Bank’s management and a variety
ner bank that excels and grows through transparent
of transactions in a timely manner.
and efficient management innovation.
type of meeting
no. of agenda
Issues
no. of
Briefings
major Issues
Shareholders’ Meeting, BOD and
Corporate Governance, etc
Accounting /
Financial Management
Portfolio & Risk Management /
Investment / Audit & Inspection /
Gov. Regulation
HR / Organizational Management
Others
Total
14
5
2
5
15
41
6
6
13
2
8
35
Holding regular shareholder meetings, functioning of the Board of Directors/ Board of
Directors’ Management Committee, discussing corporate governance issues, establishing
and implementing management plans and strategies (launching and realigning divisions)
Approving and modifying the settlement of financial statements, reporting and planning
financial records, briefing on results and actions for reviewing the MOU, planning for
bonds issues (including foreign currency bonds) and managing credit limits
Comprehensive briefing on major loans, investments in private equity funds, selling off
NPLs, briefing on the status of NPLs, appraising the commitments of investment com-
panies to invest, handle audit and internal control issues as well as manage and support
special contributions of guarantee institutions for SMEs
Carrying out performance evaluations/compensation, appointing and dismissing employ-
ees excluding the BOD and addressing issues related to labor-management relations
Woori Bank
annual report 2015
29
n e w s h i g h l i g h t s
Launch of the Korea’s
1st Mobile Bank
‘WiBee Bank’
Hansae Basketball Team
Wins the Championship
Three Consecutive Years
in the Women’s Korean
Basketball League
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After Woori Bank’s President and CEO Lee Kwang Goo an-
nounced 2015 as the first year of the ‘Smart Digital Bank’ at
his inauguration ceremony, Woori Bank launched the Ko-
rean financial Korea’s 1st mobile bank ‘WiBee Bank’ in May.
‘WiBee Bank’ is creating a new paradigm for the Korean
financial industry—in addition to being the banking sector’s
1st mobile small loan finance product charging a mid-level
interest rate for its ‘WiBee’ Mobile Loan’, it includes the
launch of financial services such as convenient remittance,
travel insurance, and foreign currency exchange, a financial
industry first. The ‘WiBee Mobile Loan’ system allows cus-
tomers who used high-interest rate loans through private
lenders or nonmonetary institutions in the past to take out
bank loans easily and at low cost without visiting a branch
or filling out documents. It is highly praised for establish-
ing the foundation for the ‘internet bank’ business model.
Based on these experiences, Woori Bank and KT become
key players in the establishment of the K-Bank Consortium.
On November 27, we obtained preliminary approval for
Korea’s 1st internet bank to take a powerful step towards
becoming Korea’s No. 1 internet bank. In addition, WiBee
Bank’s cute mascot ‘WiBee’ has become the face of Woori
Bank in the form of emoticons and dolls.’ The bank will
also take the lead in social contribution activities, such as
donating profits raised from selling ‘WiBee’ emoticons to
the Youth Hope Fund. Furthermore, WiBee Bank provides
other services like mobile games and free music, and has
plans to enter into overseas markets, starting with the
launch of‘WiBee Bank Cambodia’ this year and other Asian
markets including Vietnam and China next year. As WiBee
gains popularity, we look forward to a bright future for
Woori Bank and WiBee Bank as they spread throughout
the world.
On March 27, Woori Bank’s Hansae Basket-
ball Team accomplished the great achieve-
ment of winning three consecutive regular
season and championship titles by defeating
KB Stars in the 4th game of the 2014-15
Season WKBL Championship Final held at
Cheongju Gymnasium. Before the start of
the season, Hansae Basketball Team’s key
players, head coach Wi Sung Woo, and sen-
ior coach Jeon Ju Won had to participate in
the Asian Games and the FIBA World Cham-
pionship for Women; this left them with
little time for practice. However, the players
overcame this handicap with a strong will
and unity to win sixteen consecutive games,
the longest winning streak in WKBL history.
Of course, it was not all smooth sailing: key
guard Lee Seung A suffered an ankle injury
two times in December and February. Also,
Lee Eun Hye (a solid fill-in for Lee Seung A
during her injury) hurt her waist. As a result,
the physical burden increased for other key
players including Im Young Hee and Park
Hye Jin. However, the players’ fighting spirit
prevailed and the Hansae Basketball Team
won three consecutive regular and cham-
pionship titles with a record of 3 wins and
1 loss when Lee Seung A joined the team
starting from the second game of the final
championship. Due to its three consecutive
wins that started in the 2012-13 Season
and its 7th championship title, the Hansae
Basketball Team recorded the most wins in
the history of the championship. Meanwhile,
the Hansae Basketball Team is currently
diligently maintaining 1st place in the 2015-16
Season, which began not long ago. We look
forward to Hansae Basketball Team breaking
records with a monumental achievement of
four consecutive wins and an 8th title, with
the tremendous support of the bank’s em-
ployees backing them.
Woori Bank
annual report 2015
30
Launch of the
‘Woori
Samsung Pay’
Service
On August 20, Woori Bank launched
the ‘Woori Samsung Pay’ service
in conjunction with Samsung Elec-
tronics. With it, customers can make
payments at affiliated stores or
withdraw money from ATMs just
by using their bank accounts; there
is no need for a separate credit or
debit card. This strengthened our
position as the leader in the Fin-
Tech (finance technology) sector.
Any person with a Samsung Pay
compatible phone and an Woori
Bank account can use this service
by registering up to 10 accounts
through the Samsung Pay applica-
tion, Woori Bank Internet Banking,
Smart Banking, or by visiting a bank
branch. In particular, we reduced
customer security concerns by ap-
plying the world’s 1st MST (Magnetic
Secure Transmission) method and
using fingerprint authentication and
tokenization (a one-time payment
method for transactions). Among
convenient payment services, ‘Woori
Samsung Pay’ has received praise
as a great wallet alternative that
allows cash withdrawals, the first
of its kind in Korea. Woori Bank
will continue to develop innovative
financial transaction technology as
well as offer additional services such
as remittances and online payments.
Meanwhile, Woori Bank, which has
actively introduced financial services
that integrate ICT by being the 1st
in the banking sector to establish a
FinTech Business Dept., successfully
established ‘Woori Samsung Pay’
service, following the success of Ko-
rea’s 1st mobile bank ‘WiBee Bank’
to take a leading position in the Fin-
Tech sector.
n e w s h i g h l i g h t s
The 100th Anniversary of
Serving as the Treasury Bank for the
Seoul Metropolitan Government
Awarded the Grand Prize in the 2015
Customer Satisfaction Management
Awards for Eight Consecutive Years
in the Financial Sector
This year marks the 100th anniversary of Woori
Bank acting as the treasury bank for Seoul Metro-
politan City. Since 1915, we have been designated
as the treasury bank for Seoul Metropolitan City
to support the safe and efficient management
of Seoul Metropolitan City’s finances. The reason
behind why we were chosen as the treasury bank
for Seoul Metropolitan City over the past century
is because of our advanced IT infrastructure and
expertise in treasury bank matters. On March
31, in order to celebrate a century of serving the
Seoul Metropolitan City, Woori Bank was the
1st private company to hold a celebration event
at the Seoul Metropolitan City Hall under the
slogan‘116 Years with Customers, 100 Years with
the Seoul Metropolitan City’. Various events were
held for the Seoul Metropolitan Government and
Seoul citizens, including an event marking 100th
Anniversary of serving as the treasury bank for
Seoul Metropolitan City, an exhibition of historical
records for the past one hundred years, a 100th
anniversary signboard unveiling ceremony for
Seoul Metropolitan Financial Center, and a 100th
anniversary special sale event for installment
savings accounts. The Mayor of Seoul, Park Won
Soon, who attended the events requested that
“Woori Bank continue to stand by Seoul Metro-
politan City and the Seoul citizens so that we can
continue to depend on the bank in the future.”
Woori Bank’s President and CEO, Lee Kwang
Goo responded, “Based on the collaboration dur-
ing the past one hundred years, we will faithfully
fulfill our role as Seoul Metropolitan City’s policy
partner for the next 100 year by making further
efforts to improve the Seoul Metropolitan City’s
tax administration, support small-loan finance,
vitalize traditional markets and support job crea-
tion programs.” The event was a meaningful op-
portunity to further strengthen the 100 year old
partnership between Seoul Metropolitan City and
Woori Bank. Meanwhile, Woori Bank is currently
designated as the treasury bank for Seoul Metro-
politan City, an account worth KRW 27.5 trillion,
including the Seoul Metropolitan City’s budget of
KRW 25.5 trillion and a contribution fund of KRW
2 trillion.
Woori Bank
annual report 2015
31
Woori Bank received the Grand Prize in the
2015 Customer Satisfaction Management
Awards for eight consecutive years in the
financial sector. The Customer Satisfaction
Management Awards, hosted by the Korea
Economic Daily and organized by the Korea
Sustainability Management Evaluation Associ-
ation, are given to companies in various sectors
that take the lead in advancing the economy
by successfully implementing and enhancing
customer satisfaction management. Last year,
Woori Bank was the financial industry’s 1st to
join the Hall of Fame by winning the Grand
Prize in the financial sector for seven years in
a row. As a result of winning the award again
this year, Woori Bank will be the 1st firm in the
financial sector to win the award consecutively
eight times in order to join the Hall of Fame.
This year’s award a result of all employees striv-
ing to implement customer satisfaction man-
agement continuously under the management
policy set forth by Woori Bank’s President and
CEO of ‘field-centered management to put
customers first’. Last year, in order to reinforce
the ability of the customer service organization
and improve customer service, Woori Bank im-
plemented the ‘Customer Service Leader Start-
Up’ program, an in-house training program for
branch customer service leaders, improving the
customer service mindsets of employees by
establishing a customer service training roadm-
ap, and regularly holding training programs for
strengthening marketing capabilities. Also, we
are boosting employee morale through various
programs including: the ‘Cheer Up! Project’ that
sends supplies to help with activities for im-
proving customer service at branches ranked
lowest in customer satisfaction evaluations; and
the ‘Gonggam Dosirak’ event where bank man-
agement makes a surprise visit to a branch. In
particular, ‘Gonggam Dosirak’, which promotes
communication and enhances understanding
between management and branches, has cur-
rently changed its name to ‘Customer Service
Morak Morak’ and is helping branch employees
to provide better customer service.
Global Network
Opening of the
200th
Branch
In November 1968, Woori Bank took the 1st
step towards becoming a leading global
bank by opening a branch in Tokyo, being
the 1st Korean commercial bank to set up
a branch overseas. Following the merger
with Bank Saudara in Indonesia at the end
of last year, we established ‘Woori Finance
Myanmar’ in Yangon, Myanmar on Novem-
ber 26th of this year, 48 years since entering
overseas markets. This event also marked
the 1st time a Korean bank has opened a
200th global network. Compared to the
remarkable achievements of the Korean
manufacturing sector over the past half
century, the overseas expansion of finan-
cial companies has proved disappointing.
However, Woori Bank’s 200th overseas
branch opening was highly praised be-
cause it marked a new milestone for
promoting the globalization of the Korean
financial industry. Following the opening of
Woori Finance Myanmar, we are taking a
leading role in expanding into to overseas
markets and making plans to merge with
a local savings bank in the Philippines and
set up a local subsidiary in Vietnam at the
beginning of next year. Based on these
aggressive strategies for overseas markets,
Woori Bank currently has the largest num-
ber of overseas networks among Korean
commercial banks with over 205 overseas
networks in 23 countries as end of 2015.
We will increase this number to more than
300 overseas networks by 2016 and to
500 overseas networks over the mid-to
long-term future, thereby linking the ‘Asia
Belt’ that passes from China and Southeast
Asia to the Middle East as well as achieving
the mid- and long-term goal of becoming
one of Asia’s Top 10, and a Global Top 50
bank’.
a w a r d s
Woori Bank
awards 2015
The Korea Economic Daily
Grand Prize in the Financial
Sector of the 2015 Customer
Satisfaction Management
Awards
(Eighth Consecutive year)
The Korea Economic Daily
The 2015 Korea Fund Awards
(Best Seller Prize)
The Korea Economic Daily
Grand Prize in the PB Service
Sector of the 2015 Korea
Luxury Brand Award
(Six Consecutive year)
The Asian Banker
Korea’s Best Cash
Management
Bank in 2015
The Asian Banker
Korea’s Best Custodian
Bank in 2015
The Asian Banker
The Asian Banker Award
"Best Mortgage Product"
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League of American
Communications
Professionals
Platinum Prize in the
LACP Annual Report
Competition
The Korea Economic Daily
Special Prize
in Carbon Management
(New Participation Category)
The Korea Economic Daily
Minister of Public
Administration and Security
Award 14th
Korea Safety Award
The Bank of Korea
Citation as Best Institution
- Won-yuan Market
Maker Category
Newspim
The 3rd Newspim Capital
Market Awards
(The Best CIB Prize)
Mail Business Newspaper
The 14th Korea Fund Awards
(Best Seller Prize)
Woori Bank
annual report 2015
32
a w a r d s
大同躍進
Dae-dong-yak-jin refers to always taking a step ahead of others if you want to
succeed. Our efforts to become more innovative, change in advance, and be ready
for competition a step ahead of others will act as a huge competitiveness in better
serving our customers for another 100 years.
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Great Woori
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1
reliable Partner
Safeguarding a Sound
Future for Customers
Smart Banking ___ 036
risk management ___ 038
employee Satisfaction ___ 041
consumer Protection ___ 044
Woori Bank
annual report 2015
34
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Woori Bank
annual report 2015
35
re l i a b l e p a r t n e r
Smart Banking
the Smart banking business Division is in charge of establishing woori bank’s strategy for smart
banking, as well as the exploration of new markets. in order to deliver a timely product in a smart banking
market that demonstrates exponential growth, while also achieving market dominance in the electronic
payment/remittance market in alliance with iCt companies, the Smart banking business Department
and the Fintech business Department were formed within the division. as of the end of 2015, 14.78 million
customers have subscribed to internet banking and Smart banking services. along with about 6,890 atMs
and through the utilization of state-of-the-art technologies through smart phones and the internet, we strive
to become a bank that is always close to customers.
No.1 M/S in smart banking
subscription rate and utilization rate
among bank-wide customers
as of the end of 2015
48%
utilization rate
30%
Subscription rate
SALES for
NoN-fACE-To-
fACE ProDuCTS
No.1 M/S
14.8
as of the end
of December 2015
(unit: krw trillion)
launched the Financial sector’s 1st mobile
Bank ‘WiBee Bank’
In today’s rapidly changing market conditions,
Woori Bank was the 1st in the financial sector
to launch an internet-only bank called ‘WiBee
Bank’, providing branchless services. The
WiBee Mobile Pay service was launched to
allow wire transfers using SNS without hav-
ing to know the bank account number of the
beneficiary, as well as the launch of the bank-
ing sector’s 1st mid-level interest rate loan
- WiBee Mobile Loan to support small-loan
financing. The bank has also released vari-
Review of 2015
In 2015, the Smart Banking Unit launched the
financial industry’s 1st mobile bank ‘WiBee
Bank’ to lead the smart banking market. It
also released the Woori Samsung Pay ser-
vice, which is currently available only through
Woori Bank in conjunction with Samsung
Electronics to provide advanced services in
the FinTech market, one step ahead of the
competition. Also, we will improve customer
convenience by launching various market
leading products such as the banking sec-
tor’s 1st mid-level interest rate loan product -
WiBee Mobile Loan; the financial industry’s 1st
mobile loan targeting entrepreneurs - WiBee
SOHO Mobile Loan; and the financial sector’s
only loan available 24 hours a day, 365 days
per year without visiting a branch and with-
out documentation - WiBee Civil Servant &
Office Worker Credit Loan.
Woori Bank
annual report 2015
36
Woori Bank, WIll BEE your lifetime partner! re l i a b l e p a r t n e r
ous financial market leading products such as: WiBee
SOHO Mobile Loan that expanded the scope of mobile
loan products previously limited to consumer banking
to include entrepreneurs by utilizing screen-scrap-
ing technology; and the WiBee Civil Servant & Office
Worker Credit Loan available 24 hours a day, 365 days
a year. Besides financial products, we also provided a
variety of integrated platform services, such as games
and music and launched WiBee Talk, the financial in-
dustry’s 1st mobile messenger service.
taking the lead in the Fintech market with the launch
of Woori samsung Pay (1st in the financial sector)
Woori Bank is responding to rapidly changing market
conditions such as the entry of FinTech companies into
the financial market, by establishing alliances across
boundaries with ICT companies to take the lead in the
FinTech market. We offered various financial services
to our customers that included releasing Woori Sam-
sung Pay for the 1st time in the financial industry in
conjunction with Samsung Electronics, and launching
Woori WeChat Pay, a simple payment service for Chi-
na’s Tencent platform. Also, we provided a variety of
new financial services to our customers through part-
nerships and cooperation with FinTech companies, as
well as improving customer convenience by releasing
loan products using scraping technology.
Providing on-demand service
In order to meet the diverse needs of customers, Woori
Bank provided on-demand services that integrate new
technologies. We enhanced the use of non-face-to-face
channels by continuously launching various customer
convenience services that included the Woori Partner-
ship Plaza that provides PR support for small business
owners (February), one-stop termination and renewal
on the maturity date that allows both transactions at
the same time (May), one-touch remote control service
that allows controlling electronic financial transactions
for the 1st time in the financial industry (April), the
Woori Beacon Service that provides marketing infor-
mation by utilizing beacons (May), the Woori Prepaid
Charging Service that charges transportation cards us-
ing smart banking services (August), and the financial
industry’s 1st Woori Watch Banking Service based on
the Tizen OS.
In doing so, we achieved better results than the compe-
tition in selling non-face-to-face products and a net in-
crease in the number of customers using smart banking.
We released the Woori
Samsung Pay service,
which is currently available
only through Woori
Bank in conjunction with
Samsung Electronics to
provide advanced services
in the FinTech market
when compared with other
banks.
Plans for 2016
In 2016, the Smart Banking Unit plans to take the lead
in the FinTech market by strengthening the competi-
tiveness of market leading services that were launched
in 2015 and providing financial services that reflect
new trends. We will support the use of non-face-to-
face channels that are convenient for customers that
include: diversifying authentication methods by using
data sources including biometric data; introducing a
new loan counseling process that uses new technology
with no need for documentation and without having to
visit a branch; expanding O2O service; and providing
on-demand financial services such as targeted corpo-
rate electronic financial services. Also, we will provide
services not only for Koreans, but also for Chinese tour-
ists to promote the use of domestic financial services
by Chinese customers. We will also increase inroads
into overseas market including the Southeast Asian
region with the WiBee model. In 2016, Woori Bank will
strive to become a strong and smart digital bank by
providing better smart financial services in the future.
Woori Bank
annual report 2015
37
re l i a b l e p a r t n e r
risk Management
risk management has become essential to strengthen the competitiveness of financial institutions. based
on the knowhow accumulated through past crises, woori bank adopted the risk adjusted performance
Measurement (rapM) for the first time in the korean banking sector in 2002, to establish advanced
risk management systems by successfully introducing the basel ii and iii protocols.
believing that profit sources are a result of effective risk management, woori bank will solidify
its presence as a leading bank by implementing top-tier risk management.
Review of 2015
By taking into consideration the uncertain economic
situation at home and abroad, including the tapering of
quantitative easing (QE) in the U.S. and the increase in
household debt and SME credit risk, Woori Bank’s Risk
Management Unit set the goal of ‘Good to Best! Moving
Beyond Doing Our Best to Become the Best’. As a re-
sult, we acquired the highest level of risk management
capability through appropriate coordination between
sales and risks, enabling us to implement risk manage-
ment policies that aim to achieve stable and sustainable
development. First, the differentiation of credit status by
borrower has been enhanced due to the improvement of
credit evaluation models. As a result, it is possible to meas-
ure the credit status of borrowers in more detail, which
has the effect of reducing low-yield assets and increas-
ing high-yield assets. As the CEO’s weighted value were
strengthened when measuring the SME or small business
model, business opportunities targeting highly-rated en-
trepreneurs exhibited a corresponding increase. In addi-
tion, we made efforts to prevent increased insolvency by
screening potentially insolvent assets through a proactive
theme review, while also setting up an anticipatory process
for preventing the insolvency of large loans by establishing
a timely management system for probable insolvencies.
If large exposures of possibly insolvent companies are
discovered, the Credit Analysis & Approval Dept. is imme-
diately notified and tasked with their management. Also,
we established a loan audit review history information
database to stimulate interest from the Credit Analysis &
Approval Dept., the Sales Dept. and enhance the efficien-
cy of follow-up management. Meanwhile, we reflected the
opinions collected from branches to rationalize regulations
Woori Bank
annual report 2015
38
Woori Bank, WIll BEE your lifetime partner! re l i a b l e p a r t n e r
High-net-worth-assets
of BBB0* and above
*Standard targets for calculation of brr
(unit: krw trillion)
57.3
64.4
2014
2015
HIgH-NET-
WorTH-ASSETS
of BBB0*
AND ABovE
69.9%
*Standard targets for
calculation of brr
+5.6%p
and improve systems. Through these efforts, we
promoted the sophistication of the risk man-
agement system and increased its efficiency.
By providing estimated credit scores for about
14,000 external financial audited corporations
that are customers of other banks, we provided
business opportunities to proactive outstanding
borrowers. Lastly, we will strive to communicate
with branches through diverse channels, such as
providing training, making on-site visits, publish-
ing a non-performing loan casebook and period-
ic newsletters.
Improvement of Credit Evaluation model
Giving an accurate credit rating is very im-
portant when handling credit. The credit rat-
ing decided is utilized in determining credit
handling, calculating interest rates and es-
tablishing limits on loan approval authority,
as well as playing a key role in identifying the
soundness of assets. In order to give credit
ratings appropriately, there needs to be a
detailed credit evaluation model. To achieve
this, Woori Bank has continuously improved
its credit evaluation model since 2014, and
we improved the credit evaluation models
for SME/small companies and non-general
companies in 2015. Due to the improvement
of credit evaluation models, it was possible to
identify the credit level of borrowers in more
detail than before, resulting in an increase
of high-yield assets and the decrease of
low-profit generating assets to have the effect
of improving Woori Bank’s overall financial
soundness. In the case of entrepreneurs who
fit within the SME/small company model, this
resulted in a greatly increased contribution to
the increase of high-yield assets by boosting
business opportunities for outstanding entre-
preneurs in accordance with the expansion of
the weighted value of a CEO.
Concentrated monitoring of loans with Po-
tential risks
After the global financial crisis and the advent
of a new normal era, low growth became per-
manent and the uncertainties of the Chinese
and emerging nation economies expanded.
This resulted in worsening company profita-
bility and a continuous increase in the num-
ber of zombie companies. In response, Woori
Bank conducted concentrated monitoring of
loans with potential risks through proactive
risk management. First, we selected loans
with potential risks through a special review
of extended or recontracted loans made by
branches and a special review of branches
with an excessive number of BB ratings. As
part of efforts to provide an anticipatory pro-
cess for preventing the insolvency of large
loans, we established a timely management
system for possibly insolvent companies. We
also established a loan review history infor-
mation database to enhance the efficiency of
follow-up management and attract the atten-
tion of loan officers and branches.
Woori Bank
annual report 2015
39
re l i a b l e p a r t n e r
Plans for 2016
In 2016, in order to take a leap forward in providing
comprehensive financial services by being ahead in
risk management, we took into consideration chang-
es in the financial environment such as the upcoming
privatization of Woori Bank, thereby establishing the
foundation to become a strong bank through improved
financial soundness. First, we will improve asset quality
by strengthening the approval standard for high-risk
borrowers of household debts, enhancing the inspec-
tion system for the analysis of corporate financial ac-
counting and improving the limit management system
by industry. We will reestablish an operational risk
management system and respond to regulations on
risk management by improving stress testing, as well
as setting up an advanced risk management system by
taking into consideration its utilization in management
practices. Also, in order to establish the foundation for
next-generation growth, we will strive to prevent the
spread of bankruptcy by establishing an information
system for partner companies/customers utilizing big
data and providing signals based on the early signs of
bankruptcy, while also actively assist in enhancing the
risk management ability of local corporations so that
the overseas sales network that is being expanded for
a diversified income streams can be stabilized. Further-
more, we will establish a strong corporate culture by
operating a consultative group for risk-related issues
to share information on the current status of risks be-
tween units and departments and reinforce communi-
cation with branches by making continuous site visits
and expanding risk training programs with practical
business case studies.
supporting Branches through Improvements in the
risk management system
Through regulation rationalization and system im-
provement, we promoted the sophistication of the risk
management system and increased efficiency. Firstly,
the implementation of Basel III has made it possible to
establish liquidity management strategies that take into
consideration the response to regulations and profit-
ability by setting up a system for calculating Basel III
liquidity coverage ratios. This system was recognized
once again for its excellence through a patent appli-
cation as a business model. Also, a more detailed risk
management model for derivatives became possible by
improving the system for measuring market risk. As it
has become possible to differentiate amongst prospec-
tive borrowers who have applied for individual credit
rehabilitation by introducing a process for predicting
individual credit rehabilitation, it is expected that annual
losses of KRW 17.6 billion can be prevented. Also, the in-
dustry management system in operation was improved
and its efficiency enhanced. We reduced the excessive
number of industries that were subject to management
(427 industries
257 industries) and adopted the
strategic borrower system for industry management to
push out borrowers with potential risks, as well as pro-
vided marketing information including the estimated
scoring and the factors that restrict ratings for about
14,000 external financial audited corporations to enable
proactive sales on high-yield borrowers.
Promoting the risk management Culture
In order to become a strong bank, the most important
thing is for all employees to take an interest in risk man-
agement and achieve a balance between sales and risk
management. We can say that a bank is only strong
when such interests are established as part of the
bank’s culture. Therefore, the Risk Management Dept.
made various efforts to promote risk management
culture through communication with branches includ-
ing: regularly sending bulletins that covered major risk
management issues closely linked to branches such as
corporate credit evaluations and RAPM (Risk Adjusted
Performance Measurements); holding training mainly
on practical business cases through diverse channels
such as video lectures and group training sessions; pub-
lishing a non-performing loan casebook; and listening
to difficulties by visiting branches and providing advice.
Woori Bank
annual report 2015
40
Woori Bank, WIll BEE your lifetime partner! re l i a b l e p a r t n e r
Employee Satisfaction
woori bank believes that a work life where employees are happy and satisfied is the foundation for
providing the best services to customers. as such, we launched the employee Satisfaction Center in 2007
to develop and operate various programs to enhance employee satisfaction levels. as a result, we have
continuously improved employee satisfaction levels at work, and have become a vibrant and happy bank
with the mindset that we can make our customers happy based on owner awareness.
Facilitating Programs for Enhancing Employee satis-
faction levels
We operate dynamic and attention-grabbing programs
to improve employee satisfaction. By supporting not
only a concert performance program for the Regional
Banking Headquarters with participation from employ-
ees, but also various pastime activities, we catered to
the cultural needs of our employees and endeavored to
assist them in the formation of networks. The ‘Oh! Hap-
py Woori’ travel program was established to boost the
happiness of individuals and has been acclaimed by
employees, while helping to improve family relations.
The program was created to help improve commu-
nication and increase excitement among employees.
Efforts are being made to put into practice the Woori
Bank belief that happiness within families drives bank
competitiveness.
oh! Happy Woori
Since July 2011, the ‘Oh! Happy Woori’ travel program,
the bank’s representative family care program, has been
implemented under the concept of ‘employee satisfac-
tion comes from being part of a harmonious family’.
On the fourth Saturday of every month, seasonal na-
ture-experience programs are held for employees and
their children, aiming to promote familial harmony while
recharging the body and soul. The programs started
off with ice fishing and strawberry picking programs in
January 2015, followed by a job experience program in
December 2015. In the second half of the year especially,
we tried to promote employee satisfaction at all levels
by offering the ‘Namdo Autumn Travel’ program and
the ‘Donghae Winter Travel’ program for employees and
their spouses. These programs, which boast of a high
level of participation from employees every month, be-
Woori Bank
annual report 2015
41
re l i a b l e p a r t n e r
wedding costs for staff, but also enhances their pride
in the Bank.
Present status of support in 2015
In order to increase concentration at work and facilitate
a healthy corporate culture by resolving various issues
involving our employees and their families and children,
we help to make reservations and pay for expenses re-
lated to psychological and legal issues.
Besides external consultation services, we also have a
psychologist on staff at the Bank who carries out psy-
chological tests, gives psychological consultations and
holds small-scale lectures at branches. Also, we seek
ways to lower our employee stress levels by providing
daily meditation, temple stay and herbal healing experi-
ences.
regional Banking Headquarter Concerts at Branches
Until 2014, we refrained from workshops that included
mountain climbing and dining together and concen-
trated on team spirit boosting programs held outdoors,
which included zip lining, glamping, yacht experiences,
ATV experiences and survival games. These programs
have been running for three years since 2012, and a total
of about 9,000 participants have joined in the iconic
and enjoyable programs that have transformed the cor-
porate culture in workshops at Woori Bank, thereby cre-
ating synergy through cooperation between employees
and enhanced work efficiency.
In 2015, in order to strengthen communication between
branch employees and Regional Banking Headquarters,
we held concerts at branches to provide a means of
communication between employees. The Woori Bank
Employee Satisfaction Center provides various pro-
grams to boost employee satisfaction and reinforces
sales capacity through communication.
‘art is tasteful, Pleasing the Five senses’
This cultural program enables employees and their fam-
ilies to enjoy a richer, more leisurely life by giving them a
cultural appreciation of art, musicals and classical music
and by satisfying their craving for a more cultured life.
Between 2012 and 2014, we received a positive response
from our employees with collective viewing of the opera
Little Prince and the musical Wicked. In 2015, we pro-
vided full support so that employees can enjoy a more
came highly popular with employees, enabling them to
focus on the importance of spending time with family, a
need that is often neglected due to an disproportionate
focus on work.
Free rental of the Wedding Hall at the Head office
auditorium
Woori Bank provides free rental of the wedding hall at
the head office auditorium to our employees. We also
provide a high-spec waiting room for the bride and
a renovated pyebaek (a traditional ceremony to pay
respect to the newly-wedded couple’s respective fam-
ilies) room, and also allow the CEO’s official company
car to be used as the wedding car. In 2015, we strived
to provide a more luxurious wedding venue through
the renovation of the auditorium. Based on this sup-
port, a total of 179 couples got married at the head
office wedding hall between 2012 and 2013, while the
venue’s popularity grew with 165 couples and 189 cou-
ples getting married in 2014 and 2015, respectively.
In 2016, we have already received reservations for over
100 weddings, showing the popularity of the venue
among our employees. The free rental of the wedding
hall at the head office auditorium not only reduces
Woori Bank
annual report 2015
42
Woori Bank, WIll BEE your lifetime partner! re l i a b l e p a r t n e r
vibrant and exciting work life balance, thanks to various
cultural programs that provide a convenient and satis-
fying cultured life, such as group viewing of the musical
‘Dreamgirls’
PC-shutdown for Work Hour normalization
In order to improve working conditions that include
extensive evening overtime hours at the Bank, we intro-
duced the Working Hour Normalization System in 2013,
and strove to implement the system in 2014.
By setting the time for computers to turn off to 7 p.m.,
employees are able to have fun after work and spend
more time at home. There has been an improvement in
work efficiency and higher concentration at the work-
place due to a lack of unnecessary evening overtime.
According to the 2015 review conducted two years after
the system was introduced, we received a positive eval-
uation indicating that the Working Hour Normalization
System has been well received by bank employees.
a Healthy and Vibrant Corporate Culture
Woori Bank promoted systematic and regular health
checks for our employees by conducting comprehen-
sive health check-ups and blood checks once a year. We
also support the use of hotel facilities across the nation,
so that employees can enjoy their time off together with
their families.
Woori Daycare Center
Woori Bank complies with the government’s policies for
increasing birth rates, by actively supporting our em-
ployees who are working moms by operating two day-
care centers, Woori Daycare Center’s Happiness Branch
(located in Mapo-gu, Seoul) and Sarang Branch (located
in Seongdong-gu, Seoul).
In the future, we will not only create a corporate culture
that actively promotes childbirth by establishing addi-
tional daycare centers, but will also work towards reduc-
ing the burden of raising children for working moms.
Woori Bank
annual report 2015
43
re l i a b l e p a r t n e r
Consumer Protection
woori bank has announced a “branch-centered management policy to put customers first”, and established
customer happiness, pioneering for the future, honesty and trust as well as putting human resources first as
core values. among these, the most important value is “customer happiness”. based on this management
philosophy, we were the 1st korean bank to newly establish a Consumer protection Division, which is
an organization formed and operated to focus solely on consumer protection. by carrying out consumer
protection activities that meet customer needs, we strengthened our position as a leading bank
in the field of consumer protection.
Review of 2015
The Financial Consumer Protection Center establishes
a complaint prevention and implementation plan by re-
flecting customer opinions and the trend of consumer
protection policies, while also promoting and advanc-
ing consumer rights and interests through continuous
improvement of systems and discovery of unreasona-
ble practices.
Also, we receive customer complaints and deal with
issues promptly and efficiently, as well as conducting
separate research on complaint handling and engaging
in a reflection process. In addition, we promote various
consumer protection activities such as providing one-
stop support after consultations with relevant depart-
ments in relation to branch requests and complaints
received.
significant Decrease in Customer Complaints Com-
pared to the Previous Year
In February 2015, Woori Bank President and CEO and all
bank employees stated their commitment to reducing
complaints by holding a resolution ceremony marking
‘the campaign to create a complaint-free bank’. We
will take the lead in substantially reducing customer
complaints compared to the previous year by mainly
focusing on supporting business organization activities
through various complaint prevention programs, such as
certification systems for outstanding Regional Banking
Headquarters, Complaint-Free Branches and the Clean-
Up 10 Program, as well as operating an early warning
system for complaints.
Implementing Consumer Protection Programs that
meet Customer needs
When developing a new product or a new system,
Woori Bank
annual report 2015
44
Woori Bank, WIll BEE your lifetime partner! re l i a b l e p a r t n e r
these procedures with training programs held
for branch employees. As a result, the number
of new fake bank accounts compared to the
beginning of the year decreased significantly
and branches are actively preventing criminals
from withdrawing large amounts of cash.
Plans for 2016
先見知明
In 2015, the Financial Consumer Protection
Center decided upon ‘
foresight’ as
the core value of consumer protection. First,
‘
’ is the attitude of preventing complaints
先
by reflecting customer opinions first. Second,
’ is the attitude of putting ourselves in the
‘
見
customer’s shoes by reflecting the manage-
ment policy to put customers first. Third, ‘
’
is training provided utilizing various channels
’ symbol-
for consumer protection. Fourth, ‘
izes the efforts made to brighten up financial
blind spots.
明
知
Starting from this year, the Financial Super-
visory Service plans to conduct a consumer
protection evaluation that determines the
overall consumer protection index of financial
institutions, improving the evaluation sys-
tem from the previous complaint evaluation
system that simply evaluated complaints. As
a result, Woori Bank will take on the role of
being a leading bank in the field of consumer
financial protection by achieving high ratings
in all categories.
we reflect customer opinions beforehand by
conducting prior research and consultations.
This also includes a pre-inspection for factors
infringing on consumer rights and interests
from the customer eye-level before releasing
the products. In order to reflect a variety of
opinions from customers, we continuously
gather opinions from branches by holding
a contest every quarter to receive branch
employee ideas on ways to improve systems
related to consumer protection, as well as ex-
ceeding the annual target of 116 tasks (a sym-
bolic number marking the number of years
since Woori Bank’s founding) as a result of
reflecting customer opinions on improvement
through various complaint channels. Further-
more, we operate a compensation system for
customer losses, enabling complaints to be
resolved promptly and for appropriate com-
pensations to be given. We actively operated
the ‘Cham Forum’, which is a voluntary meet-
ing of customer happiness managers who act
as the advance guard of consumer protection
at branches, so that consumer protection
activities can be implemented actively and
voluntarily. This year, complaint prevention
training programs were held at 258 branches.
Preventing Financial Fraud by Becoming a
Bank with Zero Fake Bank accounts
In order to prevent fake bank accounts that
have become a hotbed of financial fraud and
incidents such as voice phishing, pharming
and mortgage fraud targeting the middle
class, we reinforced procedures for opening
bank accounts, and continuously promoted
WoorI BANK’S
CuSToMEr
INforMATIoN
ProTECTIoN
For the purpose of
strengthening customer
information protection in
2015, woori bank upgraded
the Customer information
Security Division, to
strengthen the security
of management and
technologies for
consumer information pro-
tection and to make
the utmost effort to prevent
the leakage of customer
information.
• Acquisition of the ISMS
(information Security
Management System) certifi-
cate for
the korea internet
Security agency’s informa-
tion protection management
system under the Ministry
of Science, iCt and
Future planning
• Establishment of customer
information leakage
prevention system
• Prevention of the use of
general portable storage
devices by introducing the
security uSb device system
and establishment of
an approval system for
documents exported from
the internal network
• Implementation of the
real-name system with
masking(*) so that personal
(customer) information
cannot be identified
when printed out from
the personal computer
• Establishment of a system
that prevents fraudulent
transfers through internet
banking services
• Provision of information
security training programs
twice a year for
all employees
Woori Bank
annual report 2015
45
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Woori Bank
annual report 2015
46
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Woori Bank
annual report 2015
47
le a d i n g p a r t n e r
Global Business
after establishing woori Finance in Myanmar at the end of 2015, woori bank had entered 23 countries with
205 overseas networks, including 19 branches (5 sub branches affiliated with larger branches), 8 subsidiaries
(184 branches of subsidiaries) and 2 representative offices, and has sustained growth momentum
for overseas expansion by establishing the largest global network of all korean banks, by operating korean
desks (in South africa, turkey, etc.) and dispatching GrMs (to Mexico, etc.). we also continued
to implement differentiated business strategies and localization for each overseas network.
Worldwide Branch Network
205 Networks in 23 Countries
Overseas Branch (14) & Sub-Branch (5)
Overseas Representative Office (2)
Overseas Subsidiary (8)
Subsidiary
Branch/office/
Korean Desk/GRM
Countries
23
205
overseas
networks
* GRM: Global Relationship Manager
** As of December 31, 2015
Woori Bank
annual report 2015
48
Woori Bank, WIll BEE your lifetime partner! le a d i n g p a r t n e r
Review of 2015
After establishing Woori Finance in Myanmar
at the end of 2015, Woori Bank had entered
23 countries with 205 overseas networks,
including 19 branches (5 sub branches affiliat-
ed with larger branches), 8 subsidiaries (184
branches of subsidiaries) and 2 representative
offices, and has sustained growth momentum
for overseas expansion by establishing the
largest global network of all Korean banks, by
operating Korean desks (in South Africa, Tur-
key, etc.) and dispatching GRMs (to Mexico,
etc.). We also continued to implement differ-
entiated business strategies and localization
for each overseas network.
Expansion of overseas networks (Channels)
In November 1968, Woori Bank was Korea’s
1st commercial bank to establish an overseas
branch in Tokyo, the first step towards be-
coming a leading global bank. In December
2014, we merged with Saudara Bank in In-
donesia, and after only 48 years of overseas
MAjor
HIgHLIgHTS
of gLoBAL
BuSINESS
106.6
net income
(unit: uSD million)
0.71
npl ratio
(unit: %)
0.73
Delinquency Ratio
(unit: %)
115.92
Liquidity Ratio
(unit: %)
expansion, we were the 1st Korean bank to
open a 200th global network by establishing
Woori Finance Myanmar in Yangon, Myanmar
on November 26, 2015. Woori Bank was the
1st to achieve the opening of 205 overseas
branches, which set a new milestone in pro-
moting the globalization of the Korean finan-
cial industry. Following the establishment of
Woori Finance Myanmar, Woori Bank played a
leading role in helping the Korean financial in-
dustry enter overseas markets and spread the
Korean financial wave across the world, such
as by planning mergers with a local savings
bank in the Philippines and the establishment
of a local subsidiary in Vietnam in 2016. Based
on such aggressive strategies to penetrate
overseas markets, we aim to become one of
‘Asia’s Top 10, Global Top 50 Banks’ by open-
ing 300 overseas branches by 2016 and more
than 500 in the mid- to long-term future,
thereby completing the Asia Belt that passes
from China through Southeast Asia to the
Middle East.
Development of Competitive Products and
services (Business)
Woori Bank has developed competitive retail
products and services that are customized to
local circumstances by benchmarking Korean
domestic products. We will utilize the bank’s
overseas operations and search for new profit
sources by increasing non-face-to-face chan-
nels, including mortgage loans for retail cus-
tomers, trade finance, credit loans for high-
yield customers, debit cards, and credit cards,
while overcoming limits on the number of
networks we can establish.
We also provide one-stop financial services
that enhance consultation channels between
marketing and related divisions in order to fa-
cilitate overseas business.
Enhanced management of overseas Finan-
cial Institutions (FI)
The Global Business Unit signed business
alliances with local financial institutions to
Woori Bank
annual report 2015
49
le a d i n g p a r t n e r
profit by diversifying profits from overseas
markets.
Also, in order to manage the risks of an in-
creasing number of overseas networks, we
have strengthened monitoring of overseas
branches by newly establishing the Global
Internal Control Team under the Global Busi-
ness Unit.
With customer-oriented products and servic-
es, we will strive to achieve 1st place in market
share position among Korean banks stationed
locally in the short run and become Asia’s
leading bank in the long run, thereby becom-
ing a leading bank that competes directly
with the world’s prominent banks.
NEW MArKETS
for WoorI
BANK’S gLoBAL
BuSINESS
• establishment
of woori Finance
Myanmar to become
the 1st korean bank to
open a 200th
global network
(november 2015)
• Signing of an
acquisition contract
with a savings bank
in the philippines
(December 2015)
• Acquisition of a C/L
(Confirmation letter)
for the conversion
of a branch into
a local subsidiary
in vietnam
(January 2016)
provide diverse financial services for Korean
companies stationed in regions where we
have not yet established networks. As a re-
sult, we took the lead in providing financial
support to Korean companies by cooperating
with overseas financial institutions, such as
operating Korean desks in Turkey, Qatar and
South Africa to offer loans for Korean compa-
nies stationed locally or in neighboring coun-
tries.
Also, we are striving to secure a new line of
credit, provide financing support through
overseas branches and create new business
opportunities by establishing relationships
with world-famous financial institutions.
Plans for 2016
The Global Business Unit’s plan for 2016 aims
to continuously expand networks especially in
high-profit regions, reinforcing growth along
with internal stability and a focus on risk man-
agement.
I n a d d i t i o n to i n c re a s i n g n e t wo r k s i n
high-profit regions (Southeast Asia), we
will strengthen the profitability of overseas
business by enhancing our competitiveness
through alliances with different types of
businesses, as well as develop customized
retail products and enhance package sales to
strengthen growth alongside internal stability.
We also plan to maximize synergy by rein-
forcing business links between domestic and
overseas branches.
In order to position ourselves to become a
leading bank in the FinTech sector by 2016,
we will increase overseas non-face-to-face
channels through mobile banking by con-
tinuously expanding the successful business
model of WiBee Bank in our overseas branch-
es, while also establishing the basis for global
growth by developing a card business in
Southeast Asia and creating a new source of
Woori Bank
annual report 2015
50
Woori Bank, WIll BEE your lifetime partner! le a d i n g p a r t n e r
investment Banking
Woori Bank’s IB Headquarters is in charge of diverse investment finance affairs, including syndicated loans (M&A,
corporate finance, etc.), project financing (infrastructure projects, power generation energy projects, etc.), securities
investment (securities, mezzanine securities, investment funds, foreign currency bonds, etc.) and the granting of
credit. With the Investment Banking Dept. and the Project Finance Dept. divided up under IB Headquarters, we
actively implement business plans and solutions for ib. in particular, we provide a customized financial structure
that can meet a project’s capital needs with support from companies through a strong network and through
partnerships with our major corporate clients. we are also actively exploring not only the domestic market but also
the overseas ib market, through the establishment and operation of woori Global Market asia ltd. since october
2006, korea’s 1st financial institution to specialize in overseas ib investment in Hong kong.
Total Assets of
Investment Banking
(unit: krw trillion)
11.1
11.1
as of the end of 2014
as of the end of 2015
ed: a fund exclusively for acquisition finance of about
KRW 640 billion in the field of M&A; a new technology
investment fund of about KRW 130 billion in the field of
PI; and a power generation fund of about KRW 115 bil-
lion in the field of power generation energy.
Review of 2015
The year 2015 was a year where we made efforts to
selectively implement business strategies by taking
into consideration stability and profitability, while also
providing the foundation for acquiring new engines of
future growth.
First, we achieved outstanding performance in the
fields of M&A acquisition finance and PI (Principal In-
vestment), which we used to concentrate our business
on key IB areas. We ranked 1st in the M&A syndication
market. In particular, we jointly arranged the ‘Home Plus
acquisition finance’ (a total of KRW 4.3 trillion), which
was the largest M&A project in Korean history. We also
achieved outstanding performance in the field of PI,
such as generating huge dividends and sale profits from
investment assets that had been invested before. Also,
we established funds for a new future growth engine in
the fields of M&A, PI and power generation that includ-
Woori Bank
annual report 2015
51
le a d i n g p a r t n e r
Plans for 2016
In 2016, in order to strengthen the competitiveness of
an increasingly competitive IB market, Woori Bank’s
IB Headquarters will focus its capacity on key areas
like M&A, PI and infrastructure financing. Also, we plan
to carry out a variety of new businesses that have
not been explored before and actively participate in
overseas business in order to overcome the limits of
the existing domestic market and establish a founda-
tion of profits in the future. Above all, we will focus on
strengthening financial soundness to reduce non-per-
forming loans, while also doing our best to prevent the
occurrence of new non-performing loans.
Total Assets
of Investment
Banking-end 2015
off-balance
sheet assets
39%
loan
contracts
39%
etc.
1%
Securities
21%
Investment Banking
Business unit
Investment Banking
Organization
Investment
Banking Dept.
Project
Finance Dept.
IB Business Team
M&A & Foreign Investment Team
Principle Investment Team
Corporate & Shipping Finance Team
Structured Finance Team
Infrastructure Finance Team
Power & Energy Team
Woori
Global markets
asia ltd.
(Hong Kong)
Overseas Sales Team
Sales Team
Woori Bank
annual report 2015
52
Woori Bank, WIll BEE your lifetime partner! le a d i n g p a r t n e r
Financial Market Business
the Financial Market business Division consists of the treasury Department that manages bank-wide
liquidity, the Trading Department that handles F/X Dealing, marketable securities and financial derivatives
and the Settlement Support Department that performs back office duties. in particular, we are the solid
market leader among korean banks in terms of trading derivative products, such as forwards,
swaps and options based on a wide range of underlying assets, including interest rates,
foreign currencies, equities and commodities.
Review of 2015
The Financial Market Business Division is the main body
that oversees funding and financial market activities
such as FX, securities, commodities, and derivatives
trades. The division efficiently balances assets and lia-
bilities through these activities to continually improve
profitability while maintaining sound liquidity. In 2015,
the division focused on improving NIM by maintaining
an optimal loan-deposit ratio, liquidity position and low-
cost funding. Bracing for the possible decrease of the
BIS ratio due to Woori Financial Group’s privatization,
we enhanced the capital ratio by issuing contingent
capital securities in both domestic and foreign curren-
cies. The foreign currency contingent capital issue in the
first half of the year was the first of its kind for Korean
banks and paved the way for others to follow.
Through these measures, the Bank’s liquidity coverage
ratio (above 80%), liquidity ratio for foreign currency
(above 85%) and the medium and long-term foreign
currency funding ratio (above 100%) are well above reg-
ulatory guidelines, contributing to a 0.6 percent increase
in BIS ratio. We also strengthened our competitiveness
in FX and derivatives trading through expanding curren-
cy trading and provided various hedging services avail-
able 24 hours a day to assist our customers with risk
management.
optimized liquidity management
• Issuance of senior bonds and contingent capital
securities in domestic and foreign currencies
In 2015, the Financial Market Business Division estab-
lished proactive financing plans to issue KRW 2.1 trillion
in senior bonds, KRW 0.24 trillion in domestic currency
contingent capital securities and USD 500 million in
Woori Bank
annual report 2015
53
le a d i n g p a r t n e r
as the Mexican Peso, South African Rand, Polish Zloty
and Russian Ruble, diversifying its portfolio of trading
currencies. Also, we were selected as the market mak-
er for the won-yuan direct trading market (opened in
December 2014) two years in a row for 2015 and 2016.
We are playing a leading role in the development of the
won-yuan trading market and received a commendation
from the Bank of Korea in 2015.
• Derivatives
In derivative markets, we strengthened the stability of
derivative trading by increasing arbitrage transactions
and taking positions through forecasting market vari-
ables, such as domestic and international policies and
fluctuations in supply and demand. We also provided
one-on-one customized solutions and risk management
consulting services for FX and derivative trading by
having derivative specialists make on-site visits, so that
SMEs can receive support in areas in which they lack
risk management experience and know-how.
• Securities
In the securities market, we increased interest profits
and non-interest profits by efficiently operating bonds
and bond-type beneficiary certificates through analyz-
ing monetary policies and bond markets domestically
and internationally, as well as diversifying the source of
non-interest profits through a variety of ways such as
increased volumes of bond lending transactions traded
as risk-free transactions receiving commission. We also
gained access to the CIBM (China Interbank Bond Mar-
ket) and acquired an investment limit of 2 billion yuan,
allowing us to invest in the Chinese bond market.
foreign currency contingent capital securities at lower
interest rates compared to other banks. These domestic
and foreign currency contingent capital securities con-
tributed to Woori Bank’s stable BIS ratio. The foreign
currency contingent capital securities enhanced Woori
Bank’s position in the international financial market sig-
nificantly by making it the first ever Korean bank to suc-
cessfully issue them under the new Basel III standards
(Tier 1) at low global interest rates. As a result of the
issuance, we had the honor of being chosen as the best
Korean bank for capital securities in 2015 at the Triple A
Country Awards hosted by Asia’s prestigious financial
magazine, The Asset.
• Improving the stability of financing by exploring a
new market for raising foreign currencies and diversi-
fying funding currencies
In the first half of 2015, we successfully issued a total
of 700 million yuan in bonds for Taiwanese and Hong
Kong markets, and in the second half of 2015, we is-
sued 33 million in Euro bonds. According to market
conditions, we diversified foreign currencies to reduce
financing interest and improve the financing stability.
Also, despite the US interest rate rise and uncertainties
in emerging nation financial markets, we achieved stable
management of foreign currency reserves by managing
liquidity buffers above the regulatory guidelines set by
the Financial Supervisory Service.
• Compliance with regulatory guidelines
As of the end of 2015, Woori Bank was well above the
regulatory ratio set by domestic financial supervisory
agencies by proactively managing surplus liquidity
to achieve a 95.09% liquidity coverage ratio, a 117.25%
foreign currency liquidity ratio and a 248.55% medium
and long-term foreign currency funding ratio
strengthened Competitiveness in FX and Derivative
trading
In 2015, the Financial Market Business Division focused
on strengthening our competitiveness in increasingly
volatile financial markets, as well as entering into new
markets.
• F/X Trading
In foreign currency trades, Woori Bank has strength-
ened trading activities in a variety of currencies such
Woori Bank
annual report 2015
54
Woori Bank, WIll BEE your lifetime partner! le a d i n g p a r t n e r
Plans for 2016
In 2016, the Financial Market Business Division will main-
tain the Liquidity Coverage Ratio (LCR) at an optimum
level by managing high-quality liquid assets and con-
trolling net cash flows.
In order to effectively manage liquidity, we will diver-
sify funding maturities, and reduce financing costs by
increasing CD issuance. In addition to liquidity, we will
continue to diversity trading strategies in foreign ex-
change, derivative arbitrage, and hedging on currencies
and interest rates to increase profitability in trading ac-
tivities.
Since it is forecasted that the demand for risk hedging
will increase following increasing global volatility, we will
continuously expand FX and derivative trading by pro-
viding customized products in a timely manner. Further-
more, we will increase non-interest profits and attract
new high-yield customers by operating an exclusive
team that specializes in selling to investors of financial
and public institutions, including securities companies,
insurance companies, and government agencies.
Liquidity Ratios
(unit: %)
130
120
110
100
90
Liquidity Coverage Ratio(KRW)
Liquidity Ratio (FC)
116.5
102.6
118.9
115.9
Mar-15
Jun-15
120.0
96.9
Sep-15
120.7
106.7
Dec-15
Woori Bank
annual report 2015
55
le a d i n g p a r t n e r
international Trade Business
woori bank’s international trade business Division is in charge of foreign exchange related services for
both consumer/corporate banking customers in korea and overseas. the unit is engaged in establishing
and supporting woori bank’s Fx-related marketing strategies, while also operating the international trade
Service Center, which is a center specializing in bpr (business process reengineering), as well as the Seoul
Global Support Center, which is responsible for attracting foreign investment and capital transactions,
ensuring that banking tasks are handled promptly and efficiently. based on our know-how from dealing
with the largest number of large enterprises and our outstanding Fx specialists, we will provide
the best consulting services related to the import and export of finances and overseas investments
at home and abroad.
Total volume of Export & Import
(unit: uSD billion)
313.2
311.4
2014
2015
Review of 2015
In 2015, the International Trade Business Division scaled
up its competitiveness in the export/import business
and FX/remittance transfers by fostering FX special-
ists and strengthening services. This led to Woori Bank
achieving the No. 1 position among Korea’s top eight
banks for year-on-year growth in export performance
and foreign currency exchange performance with trans-
actions totaling USD 192.4 billion and USD 153.3 billion,
respectively. In order to improve foreign worker access
to financing in Korea, Woori Bank is not only operating
specific sales channel exclusively for foreign workers,
but also keeping branches open on Sundays and provid-
ing on-site visits to engage with customers face-to-face.
Woori Bank reinforced its status as the leader in the FX
market by being designated as the treasury bank man-
aging foreign currency reserves for the National Pension
Fund, one of the top four pension funds in the world.
Woori Bank also took the lead in establishing the yuan
trade settlement scheme through the conclusion of an
agreement to promote won-yuan settlements with the
Bank of Communications in China.
stronger Competitiveness in Export/Import Banking
and FX money Exchange/remittance
Woori Bank took advantage of its strengths as Korea’s
largest bank for corporate financing to handle transactions
totaling USD 311.4 billion in the export and import business
in 2015, which placed the bank no.1 in year-on-year growth
and helped Woori Bank achieve a market share of 29.8%
among Korea’s top eight banks. Also, we were chosen as
Woori Bank
annual report 2015
56
Woori Bank, WIll BEE your lifetime partner! le a d i n g p a r t n e r
a foreign currency money exchange operator by Gimpo
International Airport in parts of the airport frequented by
tourists from both Korea and abroad. As a result, we re-
corded USD 3.8 billion in transshipment volume by actively
responding to growth in the FX market resulting from the
increasing number of foreign visitors coming to Korea. By
actively responding to the new market for foreigners, such
as handling wage remittances for foreign workers and for-
eign investment in domestic capital, total remittance vol-
ume was USD 153.3 billion, placing Woori Bank in the No. 1
spot in year-on-year growth.
Expansion of Channels and specialized services for
Foreign Workers
In 2015, the International Trade Business Division in-
creased the convenience of transactions through flexible
operating service hours and bolstered customer contact
points for FX transactions, catering to the customer
needs of foreign workers. Financial services are even
available on Sundays in the 9 branches selected in the
Seoul metropolitan area and Gyeongsang area with a
high population of foreign workers; In particular, the FX
Remittance Center, which is located in Wongok-dong,
Ansan in Gyeonggi-do (the most densely populated
area for foreigners), not only opens on Sundays but
also strives to provide specialized services to foreign
workers, such as enhanced convenience in accessing
financial services through on-site visits as well as events
held for foreign workers in Korea. Woori Bank also
strives to ensure prompt and secure wage remittances.
In addition, we offer total financial services for foreign
workers during their stay in Korea from arrival to depar-
ture, including opening accounts for premium payment
through business alliances with the Human Resources
and Development Service of Korea as well as Samsung
Fire & Marine Insurance, and acting as service provider
for the payment of departure guarantee insurance.
supporting Foreign Direct Investment
Woori Bank provides consulting and support for foreign
direct investment (FDI) offered at all branches through the
Seoul Global Support Center in charge of FX and capital
transactions. More specifically, we provide services that are
precise and segmented for FX trading. Our main clients
include leading companies at home and abroad, law firms
(domestic and international), accounting firms, securities
companies, private equity firms, asset management com-
panies, consulting firms, local governments and other insti-
tutions related to foreign investment. Besides FDI related
operations, we also provide services that cover escrow, Im-
migrant Investor Schemes for Public Business, initial public
offerings (IPO) of foreign companies, consultations and
reports on other capital transactions under the Foreign
Exchange Transactions Act, and other services related to
business operation and follow-up management
Dominance in the Yuan trade settlement market
Woori Bank established the world’s 1st offshore settlement
system in won to take the lead in the globalization of the
currency, such as through the clearing of trade settlements
in won through a currency swap deal between Korea and
China. Many world-famous financial institutions have joined
Woori Bank’s fund clearing system - Woori Clearing System
(WCS). In 2015, clearing services were provided for a total
of KRW 21 trillion in KRW trade settlements. Woori Bank is
responding promptly to the establishment of a direct won
exchange market within China. Moreover, Woori Bank is
taking a leading role as a settlement bank for yuan settle-
ments in Korea. As the 1st Korean bank to receive approval
for international yuan settlements, we handled many trade
settlements through China in yuan, as well as taking care
of the first and largest volume trade settlements through
won-yuan currency swaps.
Plans for 2016
In 2016, the International Trade Business Division aims to
foster specialists in international trade and improve the
quality of support as well as provide distinctive custom-
er-specific services in export/import banking services and
foreign currency money exchange/remittances to expand
our market share. In order to meet increasing demands
from foreign customers for money exchange/remittances,
services and channels will be further reinforced. Based
on the knowledge accumulated as the treasury bank for
foreign currency reserves for the National Pension Fund,
we will reaffirm our status as the leading bank in FX by
attracting new high net worth customers. We will do our
best to create diverse business opportunities such as
attracting capital for FDIs and establish yuan trade settle-
ment schemes that meet the increasing demands of cus-
tomers for yuan trade settlements.
Woori Bank
annual report 2015
57
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Woori Bank
annual report 2015
58
3
Strong Partner
Growing and Developing
in tandem with the
korean Economy
consumer Banking ___ 060
Wealth management ___ 063
Pension & trust Business ___ 065
corporate Banking ___ 067
Sme Banking ___ 069
institutional Banking ___ 072
real estate Finance ___ 074
Woori Bank
annual report 2015
59
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s t r o n g p a r t n e r
Consumer Banking
the Consumer banking business unit is in charge of conducting overall business strategies for individual
consumers, finding new markets, managing the retail organization, establishing business channel strategies
and setting business strategies for universities and hospitals. we run a separate division within the
Consumer Banking Business Unit for wealth management that requires more specialized services. We also
work towards improving customer satisfaction with better products and services, by continuously searching
for new markets and conducting CrM (Customer relationship Management) activities.
Review of 2015
In 2015, Woori Bank recorded growth of more than 1
million new customers for four consecutive years, ex-
ceeding 21 million individuals, while also continuously
developing differentiated and innovative products.
We provide first-rate financial products and services
for different stages of the customer life cycle through
our representative projects for attracting new retail
customers. These include the Baby Project, the School
Project and the Company Project, contributing great-
ly towards retaining infants, students, office workers,
housewives and senior citizens as customers.
In 2015, we focused on expanding the existing cus-
tomer base by taking proactive measures regarding
the bank account switching, which is expected to be
implemented in 2016. For this, we attracted new high-
yield customers by launching the Major Customer
Preference Package, which integrates deposit account,
credit (check) card and credit loan.
In order to meet the increasing customer demands, we
provide services that prioritize customer satisfaction,
such as directly visiting where customers are staying
without being limited by time and space and operating
a portable branch that provides convenient services.
launching the ‘Woori Wellrich main Bank’ Package
Product for attracting new Customers and Expand-
ing the Existing Customer Base
In 2016, in order to proactively deal with the bank ac-
count switching and attract new customers, Woori
Bank launched the Woori Wellrich Main Bank package
product, which provides better services to customers
with lots of transactions and differentiated bank ac-
Woori Bank
annual report 2015
60
Woori Bank, WIll BEE your lifetime partner! s t r o n g p a r t n e r
Total Loans of Consumer Banking
(unit: krw trillion)
82.3
+15.6%
95.1
2014
2015
Total Deposits of Consumer Banking
(unit: krw trillion)
77.5
+4.9%
81.3
2014
2015
count benefits according to trade performance. By al-
lowing the existing customer base to concentrate their
multiple banking relationships exclusively with Woori
Bank, we provide various benefits for deposit and loan
transactions. For new customers, we provide the main
bank package product that allows them to conduct
multiple financial transactions all at once, so that new
customers have the same transaction benefit as exist-
ing customers for deposit and loan.
As a result, we have made a noticeable achievement in
increasing high-yield customers by attracting 1,240,000
bank accounts and KRW 51.6 billion for Woori Wellrich
Main Bank package.
Establishing Branch in Branch (BIB) to Provide Com-
prehensive Financial services
In order to provide comprehensive financial services
that meet the changing needs of customers, Woori
Bank signed business alliance with the No.1 securities
company Samsung Securities in March 2015 to set up
Branch in Branch (BIB) at Woori Bank’s head office and
Samsung Securities’ office building. Instead of simply
providing financial transactions, BIB acts as sales and
services channel, which enhances Woori Bank’s status in
providing advices and selling products.
Following the successful establishment of BIB in 2015,
we plan to continuously create synergies between the
banking and securities businesses, as well as develop
products linked with Samsung Securities and expand
additional BIB.
Woori Bank
annual report 2015
61
s t r o n g p a r t n e r
optimizing and Increasing Efficiency of Channel networks
Amid the evolving financial environment, branches have
been selected in districts with new growth potentials,
such as ‘Innovation Cities’ and industrial complexes, and
low-yield and low-presence branches have been trans-
ferred or relocated. The Bank operates 993 branches, as
of the end of 2015, including 15 new, 52 integrated and
25 relocated branches, thereby establishing a basis for
creating profits through an efficient branch network.
In 2015, in order to improve the organizational compet-
itiveness through increasing the efficiency of channels,
we introduced the ‘Personalized Branch’ as a custom-
ized retail channel to strengthen sales capacity in retail
services for individual clients, so that the financial center
could focus on corporate clients and the personalized
branch can focus on retail customers. Furthermore, in
order to reinforce the efficiency of manpower operation
and strengthen employees’ competence, we integrated
the existing four channels into the General Products
Sales and Service Team and the Total Banking Service &
Advisory Team. As a result of integrating the teams, the
optimized manpower is now used in the form of staff in
charge of outbound marketing to strengthen customer
management and attract external customers.
Plans for 2016
In 2016, in order to achieve the No.1 market share for its
customer base despite the prolonged low growth, low
interest rates and the fierce inter-bank competition, the
Consumer Banking Business Unit will focus on attracting
new customers as it did in 2015 by carrying out new retail
projects for singles and foreigners.
By proactively responding to the bank account switching
and the ISA that will be newly introduced in 2016, we plan
to concentrate on attracting new customers and imple-
ment event-oriented marketing activities by establishing a
marketing system for different stages of the customer life
cycle.
We will also strive to attract external customers by es-
tablishing an operational data store (ODS) to provide
exclusive manpower and develop exclusive products and
services for tablet branches to expand this sales channel.
Strategic Sales Team
Regional Banking Headquarters
Sihwa/Namdong/Juan
Industrial Complex
Asan/Ochang Science Park
Daedeok Science Town
Seongseo Industrial Complex, Gumi
Waegwan Industrial Complex
Hanam Industrial Complex
Changwon Industrial Complex
Sinpyeong/Jangrim/Myeongji Noksan
Industrial Complex
Onsan/Ulsan Mipo Industrial Complex
Gangdong
Gangwon
36 regional Banking
Headquarters in the
seoul metropolitan/
Gyeonggi Province area
operating 13
strategic sales team
North Chungcheong
Daejeon
and South
Chungcheong
Daegu-
Gyeongbuk
dongbu
Daegu-
Gyeongbuk
seobu
Busan and East
Gyeongnam
Central
Busan
West
Busan
Honam
Gyeongnam
Woori Bank
annual report 2015
62
Woori Bank, WIll BEE your lifetime partner! s t r o n g p a r t n e r
Wealth Management
the wealth Management (wM) Division is in charge of overseeing private banking (pb) services that
target High net worth (Hnw) customers. the wM Division consists of the wM Strategy Department;
it establishes and implements business strategies for pb services, and manages woori bank’s affiliated
products (mutual funds, bancassurance products), develops asset management products and taking a
leading role in the the retirement asset market. as of 2015, we provide customers with first-rate products
in comprehensive asset management and consulting services to around 144,000 Hnw customers
through an independent pb brand.
Total number of WM customers
(unit: thousand)
132
144
2014
2015
Review of 2015
In 2015, the Wealth Management Division
hired and trained about 70 new specialists
as part of its efforts to nurture PB specialists.
Therefore, we increased the number of
branches with specialists (PB/FA) by 40
for a total of 640 branches that provide
professional asset management services. We
also provide asset management training for
all employees so that they can proactively
deal with low interest rates and the growing
asset management market. As a result, we
achieved huge growth in the mutual fund
and bancassurance product markets. More
specifically, we achieved No. 1 market share
for the first time since we began selling
bancassurance products. Also, around 12,000
new HNW customers opened accounts with
Woori Bank. In recognition of these results,
we have had the honor of winning the ‘Korea
Premium Brand Award’ for six consecutive
years.
ToTAL
NuMBEr
of WM
CuSToMErS
12
(unit: thousand)
ToTAL
DEPoSITS
for WEALTH
MANAgEMENT
BANKINg
4.0
(krw trillion)
Woori Bank
annual report 2015
63
Utilizing a total asset management system
to Vitalize B2B sales systematically
Woori Bank established a comprehensive
asset manag ement system to p rov id e
c u s to m i ze d i nve s t m e n t s t ra te g i e s by
analyzing customer transaction records and
individual investment trends; thereby, we are
able to easily and conveniently find optimal
solutions for customers. In recognition of
the high interest on retirement incomes, we
also provide diagnostic tools and consulting
s t r o n g p a r t n e r
Total Deposits for
Wealth Management Banking
(unit: krw trillion)
37.0
41.0
2014
2015
to help customers prepare for retirement based on
expected retirement income.
Providing Various Integrated Financial services
through a Business alliance with samsung securities
Currently, Woori Bank has established Integrated
Financial Services Centers in four locations through
a business alliance with Samsung Securities aimed
at increasing the synergy between the bank and a
securities firm. Securities customers are provided with
deposit, loan and FX services, and bank customers
are offered a variety of investment options through
securities and bonds.
research on retirement Planning to Prepare for an
aging society
In July 2012, Woori Bank established a ‘research team
for a centennial lifespan’ to prepare for the era of an
aging society and launched a new retirement brand
called ‘We’ll Rich 100’ in 2015. The retirement planning
research staff is conducting R&D on related products
and services to prepare for the financial demands
of an increasingly elderly population in the future.
We released new products under the We’ll Rich 100
brand such as pension accounts, credit cards and loan
products in 2015 to offer customized products that
meet the needs of our retired customers. We also held
regular seminars for corporate and individual clients to
expand upon the need to prepare for retirement and
provide guidance in relation to effective retirement
planning.
Fostering specialized Private Bankers
In order to foster competitive private bankers, Woori
Bank operates PB Academy courses to suit different
customer needs. Moreover, more systematic training
is provided for around 640 specialists across the
nation by holding PB seminars through interactive
training sessions. We also provide training through
UC video training programs on a daily basis, including
training related to affiliated products (mutual funds,
bancassurance products), taxation and real estate, to
establish a cafeteria-type training system where the
employee can choose and take part in required training.
Plans for 2016
Aiming to achieve its goal of becoming the ‘No. 1 bank
for Total Asset Management’, the Wealth Management
Division is taking the lead in the asset management
market by achieving 1st place in product alliances and
customer revenues.
Besides increasing its market share of product
alliances, Woori Bank will strive to become a bank
that is chosen by our customers based on high profit
ratios through the introduction of a systematic revenue
management system.
We also plan to expand our asset management
services customer base by providing an exclusive sales
channel targeting affluent clients, while also enhancing
our asset management capabilities in the non-face-
to-face channel targeting the general public by
introducing robo-advisors and establishing an online
asset management center.
Woori Bank
annual report 2015
64
Woori Bank, WIll BEE your lifetime partner! s t r o n g p a r t n e r
Pension & Trust Business
as the retirement pension market expands, the pension & trust business Division was launched in 2009
to support the efficient management of retirement resources for retail customers. From the initial stage
of adopting a retirement pension system, we provided differentiated services through comprehensive
retirement pension consulting. we lead the retirement pension market by providing total financial services,
which offer customized products to suit customer investment needs through an advanced selection
process with seasoned investment specialists available.
Review of 2015
In order to guarantee a stable retirement for the work-
force and prepare for changes in the labor market,
such as a rapidly aging population, Woori Bank has
been fostering customer-oriented businesses with a
long-term perspective.
Fostering Customer-oriented Businesses
As the retirement pension market expands, the Pension
& Trust Business Division was launched in 2009 to sup-
port the efficient management of retirement resources
for retail customers. From the initial stage of adopting
a retirement pension system, we provided differentiat-
ed services through comprehensive retirement pension
consulting. We lead the retirement pension market
by providing total financial services, which offer cus-
tomized products to suit customer investment needs
through an advanced selection process with seasoned
investment specialists available.
Our retirement pension systems were upgraded to re-
flect major amendments in the Employee Retirement
Income Security Act. We also offer a variety of servic-
es, including providing updates and notifications to
subscribers through a ‘Welcome Letter’, conducting
follow-up support through the Bank’s ‘Happy Call Sys-
tem’ and providing educational support through the
‘Retirement Pension Training Management System’.
In 2015, retirement pension assets stood at KRW
11,335.7 billion, up KRW 1,693 billion from the previous
year. The number of companies subscribed to retire-
ment pensions increased by 1,137 from the previous
year to 29,148, showing an increase of 4.1% as of the
end of December 2015. The number of subscribed em-
Woori Bank
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65
s t r o n g p a r t n e r
ployees increased by 435,467, an increase of
35.5% year-on-year to 1,661,867.
Plans for 2016
While Korea is becoming a super-aged society,
Woori Bank is actively carrying out marketing
activities to secure a profit base and custom-
ers in the long run by highlighting retirement
pensions as a key growth industry. This is being
accomplished by taking into consideration the
importance of the retirement market for the
banking sector. In 2016, in order to strengthen
our position as a leader in the pension busi-
ness, the Retirement Pension Business Dept.
will secure a foundation for growth by imple-
menting differentiated marketing strategies
and improving customer revenues through
enhanced product management capabilities,
as well as upgrading business capability by
adopting the BPR process and successfully re-
establishing the retirement pension system. We
will also continue to focus on improving the
efficiency of our sales channels. In the future,
we aim to lead the retirement pension market
based on our abundant and experienced staff,
our training support system, a large variety of
products, specialized management capabilities
and a differentiated retirement planning ser-
vice platform.
rETIrEMENT
PENSIoN
ASSETS
11,335.7
(unit: krw billion)
CoMPANIES
SuBSCrIBED To
rETIrEMENT
PENSIoN
29,148
(unit: company)
EMPLoyEES
SuBSCrIBED
To rETIrEMENT
PENSIoN
1,661,867
(unit: person)
Woori Bank
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Woori Bank, WIll BEE your lifetime partner! s t r o n g p a r t n e r
Corporate Banking
the Corporate banking business unit is in charge of services for corporate customers, including
korea’s top large enterprises, such as Samsung, lG and poSCo, to cater to the diverse financial
needs of corporate customers in a timely manner.
as a result of providing exceptional services to the highest number of large enterprises in korea,
woori bank’s Corporate banking business unit prides itself on having provided the best financial services
to our corporate customers, which has enabled them to become global players over the past 117 years.
we will strive to provide our expertise to a larger number of customers in the future.
Total Credit of Main Debtor Groups in 2015
(excluding management/ financial improvement)
(unit: krw trillion)
26.2
28.3
2014
2015
Review of 2015
In 2015, the Corporate Banking Business Unit achieved 1st
place in market share in loans for major creditors, thereby
widening the gap with the second-placed bank to reaffirm
Woori Bank’s No.1 position in corporate finance.
Woori Bank is currently exploring and preparing for var-
ious financial needs through the ‘Woori Diamond Club’,
a meeting of the CEOs of large Korean enterprises, while
also strengthening its relationships with large enterprise
customers.
As of the end of 2015, the Corporate Banking Business
Unit (including Corporate Finance Center) posted total as-
sets of KRW 28.6 trillion, operating income of KRW 661.6
billion and an export/import volume of USD 254 billion.
Continuously strengthening relationships
As our corporate customers developed into global play-
ers, their financial needs have changed rapidly and have
become more diverse. Woori Bank currently runs the
‘Woori Diamond Club’, a meeting of the CEOs of large
Korean enterprises that has met continuously since
2003. The club’s 13th anniversary coincides with a desire
to strengthen our relationships with our corporate cus-
tomers, as well as provide services to respond to chang-
es 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
becoming more important, Woori Bank has signed co-
operation agreements with large enterprise customers,
and offers product packages to extend funds to SMEs
with low interest rates.
We launched the Partnership Loan for Large Enterprises
Woori Bank
annual report 2015
67
tive evolution of corporate banking. We will
achieve optimal growth based on profitability
through internal innovations that significantly
reduce possibly insolvent assets and increase
high-yield assets, instead of focusing on ex-
ternal growth as we did previously. Based on
corporate banking, we will fulfill the role of a
profit coordinator that strengthens synergies
through cooperative marketing activities with-
in the bank and maximizes all sources of profit
through collaborative marketing activities.
Woori Bank
is the major creditor
bank for 13 large
enterprises
(total number of large enterprises
under main creditor bank
management: 39 as of apr. 2016)
s t r o n g p a r t n e r
in 2008, which extended funds worth KRW
532.8 billion to 972 companies as of the end
of 2015. The Woori Partnership Loan that was
developed in 2013 received a systematic up-
grade in 2015, so that funds worth KRW 283.9
billion were extended to 2,190 companies as of
the end of 2015. As a bank that has cultivated
relationships with large enterprise customers,
we operate a partnership system through a va-
riety of customer networks aimed at reducing
financial costs to SMEs, thereby contributing
to the shared growth of both large enterprises
and SMEs.
Developing and supporting Customized
Financial Products
In 2015, company demand for investment
products that ensure stability increased due to
a prolonged period of low interest rates. In line
with such demand, we provided customized
products for companies with long-term op-
erating funds by selling an integrated deposit
product with structured interest rates. We
also developed an integrated limit for imports
and exports that enables the limits of various
FX products to be integrated and managed,
which enhanced convenience for companies
conducting FX trading. We developed and
supported various financial products in time
to satisfy the needs of corporate customers,
including the Power Brand Merchant Start-up
Loan for supporting franchise merchants that
have relationships with large enterprises and
the Woori Buy-Back Loan that was released
for sales agencies.
ToTAL ASSETS
of CorPorATE
BANKINg – AS of
THE END of 2015
28.6
(unit: krw trillion)
ToTAL CrEDIT
of MAIN DEBTor
grouPS IN 2015
(excluding
management/ financial
improvement)
28.3
(unit: krw trillion)
ToTAL CrEDIT
ExPoSurE of MAIN
DEBTor grouPS
-END 2015
34.6
(unit: krw trillion)
Plans for 2016
In 2016, the Corporate Banking Business Unit
will achieve a new paradigm shift that tran-
scends the bank’s boundaries at home and
abroad in terms of business activities that
used to focus on large enterprises, by improv-
ing asset quality and existing profit models
to achieve the our business goal of the crea-
Woori Bank
annual report 2015
68
Woori Bank, WIll BEE your lifetime partner! s t r o n g p a r t n e r
SME Banking
the SMe banking business unit is in charge of financial services for corporate customers, especially in
SMe sector. at the end of 2015 there were approximately 1,300,000 SoHo and SMe customers, whose total
loans under management amounted to krw 76.1 trillion. woori bank provides competitive products and
diverse financial and non-financial services to better satisfy SMe customers. the SMe rM (relationship
Manager) system, a channel of SMe banking pool specialists, is made available to provide the best financial
services in corporate banking.
Review of 2015
In 2015, the SME Banking Unit achieved significant results.
The total number of SOHO and SME customers increased
to around 93,000 and the total volume of loans through
SME banking by KRW 5 trillion.
The SME Banking Unit led marketing strategies that fo-
cused on attracting new high-net-worth SMEs and their
retention. As in 2014, key categories were targeted in 2015,
such as policy financing, guarantee-secured loans and
loans for equipment.
For higher satisfaction and service levels for SME custom-
ers, various preferential programs were implemented with
a greater focus on training and developing a specialized
workforce for SME banking.
Implementing marketing activities to target High-
yield smEs
As in 2014, the SME Banking Business Unit provided
wide-ranging marketing data on high-yield SMEs and
large enterprise partner companies to help attract high-
net worth customers to branches in 2015.
In January 2015, we also remodeled the ‘High-yield En-
terprise Master Loan’ to strengthen our competitiveness
and launched the ‘Woori Enterprise Power Loan’ and
the ‘Woori R&D Loan for Outstanding Technology En-
terprises’, which involved offering competitive interest
rates and preferential credit ceilings for high-yield SMEs,
to achieve an impressive sales record of KRW 16.8 tril-
lion at the end of 2015.
As a result of the SME Banking Business Unit’s con-
tinuous efforts to increase high-yield assets, loans for
Woori Bank
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69
s t r o n g p a r t n e r
high-yield enterprises of the level of BBB and above in-
creased by KRW 7.7 trillion from KRW 40.3 trillion at the
end of 2014 to KRW 48 trillion at the end of 2015.
targeted marketing for Industrial Complexes
In order to focus on attracting enterprise customers lo-
cated in industrial areas, the SME Banking Business Unit
expanded its target scope by remodeling ‘Woori Indus-
trial Complex Loan’, a specialized product for enterpris-
es located in industrial complexes, while also providing
marketing data about these enterprises to branches.
As a result of intensive marketing activities targeting
industrial complexes, the balance of ‘Woori Industrial
Complex Loan’ increased by KRW 773 billion from KRW
1,004.4 billion at the end of 2014 to KRW 1,777.4 billion
at the end of 2015.
Enhancing Policy Financing & Guaranteed loans
In 2015, the SME Banking Business Unit focused on pol-
icy financing and guaranteed loans, so that the balance
for each product increased by KRW 549 billion and
KRW 645.2 billion, respectively. In order to increase poli-
cy financing, the SME Banking Business Unit signed new
agreements with local governments and public institu-
tions, and also conducted various training programs and
provided on-site support by bolstering competitiveness
in interest rates for policy financing. In particular, the
balance of indirect loans (on-lending loans) targeting
high-yield SMEs as a percentage of policy financing
products, showed an outstanding improvement with an
increase of KRW 550.9 billion year-on-year.
In January 2015, we launched and sold the Woori V-Plus
Loan in collaboration with a credit guarantee institution.
In August 2015, we also released and sold the Seoul
Economy Boom-up Loan in collaboration with Seoul
Metropolitan City.
Providing Diverse and specialized Products
In 2015, the SME Banking Business Unit launched a
range of specialized products, including the ‘High-yield
Enterprise Power Loan’ and the ‘Woori Credit Card
Member Store Power Loan’, a preferential product for
high-yield SOHOs and SMEs to increase SOHO and SME
banking loans.
In order to strengthen the bank’s profitability in reaction
to reduced loan-deposit margins due to the new era of
low-interest rates, we launched the ‘Woori Export/Im-
port On Landing’ and the ‘Exporting Company Master
Loan’, which are specialized products targeting export/
import companies that conduct numerous FX transac-
tions.
In line with the government’s policy on revitalizing tech-
nology firm financing, we strengthened our support for
SMEs with outstanding technology, by launching the
‘Woori R&D Loan for Outstanding Technology Enterprises’.
Total Number of SME Customers
1,187,940
+8.5%
1,288,698
2014
2015
Woori Bank
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Woori Bank, WIll BEE your lifetime partner! s t r o n g p a r t n e r
Preventing Customer turnover & supporting Consult-
ing services
In order to continuously increase assets, despite intense
competition with other banks, the SME Banking Busi-
ness Unit newly implemented the ‘Early Loan Extension’
program, preventing the loss of existing customers to
other banks. The program proactively identified the
needs and complaints of customers before existing
loans matured, so that customers whose maturity dates
were approaching did not go to other banks. Woori
Bank provided corporate consulting services earlier
than any other Korean bank. In 2015, we contributed to
the increase in sales and operating profits of corporate
customers by conducting 122 consulting projects. The
Corporate Consulting Team within the SME Banking
Business Unit provides various types of consulting ser-
vices for improving the corporate value including con-
sulting services for management, CFOs, family business
succession issues and operations.
Plans for 2016
In 2016, the SME Banking Business Unit plans to contin-
uously increase high-yield assets, by launching special-
ized new products to meet the needs of the main target
groups in order to attract new customers and by pro-
viding competitive interest rates for existing corporate
customers to prevent customer turnover.
In particular, we will focus on cross-selling to attract
existing customers to products they have not yet pur-
chased in 2016.
Lastly, in order to support small and micro businesses,
we will contribute to revitalizing the economy in the
lives of ordinary people and increase support programs
to FinTech companies develop by continuously offering
specialized products and support to small and micro
businesses.
Total Assets of SME Banking
(unit: krw trillion)
72.6
+4.8%
76.1
2014
2015
Woori Bank
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71
s t r o n g p a r t n e r
institutional Banking
the institutional banking business unit is divided into the institutional banking products & Marketing
Dept, to cater to the central government, local governments and public institutions, and the public Fund
Sales Department, to manage the municipal and provincial treasuries of local governments and the courts.
Moreover, we are the only bank to utilize specialists in institutional operations (institutional rM) to provide
first rate financial services to institutional customers. as of 2015, our institutional customers include
the Seoul Metropolitan Government and its 24 district offices, the Ministry of land, infrastructure and
transport, the national Health insurance Corporation and the korean railroad Corporation. the presence
of such customers reaffirms our position as korea’s largest primary bank for public institutions
Total Deposits of
Institutional Banking
(unit: krw trillion)
20.4
22.5
2014
2015
Review of 2015
Based on know-how gained from 100 years as Seoul Met-
ropolitan Government’s treasury bank, Woori Bank has be-
come a leading financial institution for local residents with
the Institutional Banking Business Unit contributing to re-
gional development and expanding the scope of transac-
tions with the central government, local governments and
major public institutions, including affiliated institutions of
the Seoul Metropolitan Government.
In line with government policies, Woori Bank provided
specialized services for the planned relocation of govern-
mental agencies to the provinces, to attract 44 out of 118
institutions that completed the selection of their transac-
tion bank in 2015, with plans to attract more institutions
as relocation continues in 2016. As of the end of 2015, the
Institutional Banking Business Unit held total deposits of
KRW 22.5 trillion and total loans worth KRW 1.8 trillion,
while maintaining relationships with about 3,800 institu-
tional customers.
towards another Century of success after making
History as the seoul metropolitan Government’s
treasury Bank for the Past 100 years
Since the treasury agreement signed with Gyeong-
seongbu (Seoul) in 1915, Woori Bank has done a re-
markable job of serving as the Seoul Metropolitan
Government’s treasury bank for the past 100 years, by
collecting tax revenue and by managing the payment
of annual expenditures. In 1988, we launched the first
comprehensive management system for revenues and
expenditures, and established the OCR Center in 1991,
accomplishments that arose from being the city’s long-
term treasury bank. Moreover, we were able to develop
world-class management capability as a treasury bank
by establishing the ETAX system in 2001, the annual
Woori Bank
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72
Woori Bank, WIll BEE your lifetime partner! s t r o n g p a r t n e r
Plans for 2016
In 2016, the Institutional Banking Business Unit contin-
uously discovered businesses linked to finance by ana-
lyzing central and local government policies, so that
we could support national economic development and
the growth of SMEs. As a result of being chosen again
as the Seoul Metropolitan Government’s treasury bank,
we will further strengthen cooperation with the Seoul
Metropolitan Government and its affiliated organiza-
tions to provide customized financial services to ena-
ble more employees to foster relationships with Woori
Bank and carry out various related projects. In line with
the relocation of the public sector, we will support var-
ious financial services to ensure major institutions and
their employees located in innovation cities nationwide
can settle down as soon as possible, as well as attract
new clients by providing customized services for a
range of customers from non-client institutions.
Major Institutional
Customers
• Local Government
• Public Agencies
expenditure e-banking system in 2004, the revenue
e-banking system and the comprehensive management
system for treasury bank affairs in 2011. Based on an ad-
vanced treasury management system and high-quality
specialists in relevant fields, Woori Bank has become a
“Partner of Seoul Hope” contributing to the Seoul Met-
ropolitan Government’s tax planning and financial man-
agement, convenient tax payments by citizens and the
development of local communities.
supporting new Projects from the Government
In order to support the R&D projects initiated by the
government, Woori Bank has set up an R&D Team within
the Institutional Banking Business Unit to conduct R&D
projects together with the Ministry of Trade, Industry
and Energy (MOTIE) since 2013. As the bank exclusively
responsible for international agreements made by the
Defense Acquisition Program Administration, we provid-
ed support for the payment settlement of goods pur-
chased from overseas. We also were the official sponsor
bank tasked with providing financial services for the
smooth running of the Mungyeong Korea 2015 6th CISM
World Games, hosted by the Ministry of National De-
fense. After being chosen as the treasury bank for VAT
payments through simplified registrations by overseas
entrepreneurs, we received VAT payments on behalf of
global companies such as Apple, Google and Alibaba
that provide electronic services for goods purchased by
Korean customers through overseas open markets.
maximizing synergies through new Business acquisitions
The Institutional Banking Business Unit not only pro-
vides financial services directly to institutional cus-
tomers, but also discovers and offers business linkage
opportunities to SMEs and related individuals. In 2015,
we explored business linkage opportunities from com-
panies being selected as smart plants through business
agreements with the Ministry of Trade, Industry and
Energy, while also pursuing additional business oppor-
tunities from companies that participated and received
funding through the National Research Foundation of
Korea’s research fund project. Furthermore, we discov-
ered opportunities to provide our financial services to
employees of various institutions that have become
new institutional customers, including the Korea Ship
Safety Technology Authority and the Korea Institute of
Ceramic Engineering and Technology.
Woori Bank
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73
s t r o n g p a r t n e r
real Estate Finance
For systematic and professional management of real estate financing, the Housing Finance Division has
been transformed into the real estate Finance business unit. the unit manages the national Housing and
urban Fund (nHuF) of the Ministry of land, infrastructure and transport as a general treasury bank. we
strive to satisfy the diverse needs of our customers by providing products that utilize woori bank accounts,
as well as national Housing Fund products that are available for those on low-incomes.
Review of 2015
In 2015, the Real Estate Finance Business Unit ranked 1st in
market share amongst national housing and urban funds.
In recognition of superior performance over the past six
years, we have been providing a variety of real estate fi-
nance products to our customers as a general treasury
bank for the National Housing and Urban Fund. We also
engaged in a preemptive response to the prolonged re-
cession in the real estate market and led the market in
generating demand for real estate financing by discover-
ing new markets.
strengthened Base as the lead agency for standard
PF loans
The Standard PF Loan is a product package consisting
of ‘Intermediate-term Loans’ and ‘Baro Dream Loans’, a
non-recourse accounts receivable loan that supports the
construction expenses of subcontractors. By satisfying
the needs of individuals for housing, SME subcontrac-
tors and large enterprise construction companies, the
Standard PF Loan has become a representative product
in the PF real estate finance market.
Expanding our Customer Base as the General treas-
ury Bank for the national Housing and Urban Fund
The National Housing and Urban Fund project plays an
important role in broadening the options for consumer
products (including products for the socially vulnerable)
of real estate financing. Woori Bank has taken the lead
in seamlessly procuring and executing funds as the gen-
eral treasury bank for the National Housing and Urban
Fund. As of the end of 2015, Woori Bank had a market
share of 44.7% in loans for subscribers and a market
share of 28% in savings for housing trust subscriptions.
Throughout 2015, 1.27 million new customers took the
Woori Bank
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74
Woori Bank, WIll BEE your lifetime partner! s t r o n g p a r t n e r
NHUF's* Consumer Loan
*(National Housing and Urban Fund)
Housing Subscription Loans (1st in market share)
(unit: %)
45.8
44.7
Housing Subscription Savings
(1st in market share)
(unit: %)
29.6
28.0
2014
2015
-1.1%
2014
2015
-1.6%
first step on the road to fulfilling their dream of owning
a house by using savings for housing purchases. Woori
Bank will strive to establish a system where more cus-
tomers can get access to the National Housing and Ur-
ban Fund.
leading the Domestic real Estate Finance market
In 2015, the Real Estate Finance Business Unit led the
market in developing products and reforming the
system in order to prepare a preemptive response to
changes in the financial market. Woori Bank is actively
participating in supporting both property stability and
the ‘house poor’ segment by inducing a soft landing for
household debts by launching the following products:
the Youth 100 Year-Old Reverse Mortgage Housing
Loan, a housing loan product that appropriates funds
for household costs incurred during a period without
income, such as early retirement or a temporary leave
of absence, and the Beotimmok Rent Subsidy Loan that
integrates the rents of workers and the working class
with the rents of low-income families.
Plans for 2016
In 2016, we will continue to dominate market share by
ranking 1st in the National Housing and Urban Fund.
We will strive to attract new loans for subscribers and
savings for housing subscriptions, including rental de-
posit loans and first-buyer housing loans. Moreover,
we will actively support real estate welfare projects for
citizens and make continuous efforts to facilitate nation-
al housing in an ethical way through our accumulated
experience in financing and operating funds. We will
also actively take part in the government’s real estate
finance measures, and actively support extending funds
to those who want to purchase their own residence by
securing optimal profitability and an asset structure
with the lowest risk. This will enable us to expand mort-
gage loans to KRW 3.2 trillion and play a leading role
in attracting consumer banking assets even in times of
economic downturn.
Woori Bank
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Woori Bank
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Woori Bank
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si n c e r e p a r t n e r
Social Contribution activities
Since the founding of woori bank in 1899, we have fulfilled our role as a national bank by embodying the
spirit of sharing, despite repeated difficulties and economic crises over the past 117 years.
at a time when social roles and responsibilities in the banking sector are highlighted, our three missions
of humanity, happiness and hopefulness will be at the core of everything we do. Diverse social contribution
activities unfold under these goals to realize the vision of ‘Sharing and caring together;
a culture of financial sharing to foster dreams and hopes’
Social Contribution
Activities of Woori Bank
‘Woori Happy society’ Program
To sponsor the underprivileged in local communities,
Woori Bank sponsors the ‘Woori Happy Society’ pro-
gram. It is a regular and continuous community-fo-
cused volunteering program that creates sisterly ties
with social welfare centers in the community and com-
munity childcare centers.
Besides directly participating in volunteering activi-
ties held at branches, Woori Bank also holds skating
contest and summer camps by inviting children from
community children’s centers who are usually at home
or at the center during summer and winter vacations.
We held a skating contest for children from community
children’s centers at the skating rink installed by Woori
Bank at Seoul City Hall Plaza. We also offer the Woori
Goomnamu Scholarship twice a year to give scholar-
ships to children from community children’s centers. In
2015, we gave scholarships to about 200 children. Be-
sides these initiatives, the head office operates various
support programs, such as providing regular support
to over 200 social welfare centers and community chil-
dren’s centers across the nation.
Global social Contribution activities
In order to fulfill our role as a global financial company
and create sustainable happiness for people and so-
cieties around the world, Woori Bank is implementing
a range of social contribution activities that transcend
national boundaries in all corners of the world. In July,
Woori Bank sent about a global volunteer group of
Woori Bank
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Woori Bank, WIll BEE your lifetime partner! si n c e r e p a r t n e r
low-income families, in conjunction with the
Korea Association of Social Welfare Centers.
love Blood Donation Event
Since 2006, Woori Bank has been holding
the ‘Love Blood Donation Campaign’ to help
out in July and August when there is a lack of
blood donations, marking the 10th anniversa-
ry of the event in 2015. During the campaign
period, employees voluntarily hold blood
donation relays at all branches, including the
head office, Woori Finance Sangam Center
and Woori W Tower. In particular, all of the
employees who participated in the blood do-
nation drive donated their blood donation gift
certificates and medical expense payments to
the children of low-income households suffer-
ing from rare diseases such as leukemia and
childhood cancer.
accumulation of the ‘Woori Care Fund’ and
the ‘Woori Children’s Care Fund’
Woori Bank employees actively participate in
promoting the culture of donation. They vol-
untarily donate part of their monthly salaries
to the ‘Woori Cares Fund’ and the ‘Woori Chil-
dren’s Care Fund’. By utilizing the ‘Woori Care
Fund’, employees created the Together Woori
Cares Support System, which explores and
supports 60 outstanding social contribution
programs annually. Our ‘Woori Children’s Care
Fund’ is made possible through social contri-
bution activities for children, such as helping
poorly-fed youth. Starting from October 2010,
we launched ‘Woori Cares e-Sharing’ where
customers can make donations when they
make transfers through internet banking, in
order to take the lead in promoting the culture
of small donations.
Woori Bank will fulfill its social responsibility
and role as a global financial company by en-
gaging directly in various long-term activities
for sharing and ensuring they are not a one-
time event, thereby establishing a corporate
culture of ‘Sharing and Volunteering’.
thirty outstanding employees to Thai Nguyen,
the northern part of Hanoi, Vietnam. This
region suffers from many difficulties due to
weak educational and transportation infra-
structure, such as children who must com-
mute to an elementary school located more
than 3km away from their homes. However, as
a result of our volunteering efforts, children
were able to receive education in a comforta-
ble and pleasant environment. We were able
to set up a branch school near the village with
four new classrooms and renovated existing
classrooms and associated facilities. Also, we
successfully held a global volunteering pro-
gram, including programs to provide instruc-
tion in art and science, subjects that Vietnam-
ese students often do not receive instruction
in, and engaged in various cultural exchange
activities with local residents.
Woori Bank sharing Hanmadang Event
In order to spend a warm holiday like Chuseok
(Korean Thanksgiving) and Lunar New Year’s
Day with our neglected neighbors, Woori
Bank has continuously carried out Woori Bank
Sharing Hanmadang activities. These social
contribution activities show compassion to
our neighbors in need during the holidays
and the kimchi-making season through our
employee volunteer work. During Chuseok,
we made songpyeon (half-moon-shaped rice
cakes) with about 100 people including Gang-
dong-gu local residents, multi-cultural families
and North Korean defectors at the Seong-
nae Social Welfare Center in Gangdong-gu,
Seoul. Bank employees also delivered 5,000
kg of rice and 500 sets of daily necessities
to our neighbors in need. Also, we prepare
and deliver kimchi to neighbors in need every
December so that they can enjoy nutritious
meals over the winter months. In December,
Woori Financial Group’s new employees and
volunteers all participated in delivering about
12,000 containers of kimjang (freshly pre-
pared) kimchi to Seoul KBS Sports World to
be distributed to neighbors in need, includ-
ing senior citizens who live alone, as well as
vISIoN
‘Sharing love and
sharing in finance
fosters dreams and
hopes’.
MISSIoN
Humanity
Happiness
Hopefulness
Woori Bank
annual report 2015
79
si n c e r e p a r t n e r
Woori Smile Microcredit
woori bank provides microcredit to spearhead efforts to practice socially responsible banking
by supporting financially struggling, socially vulnerable and neglected customers.
in 2009, woori bank led in the contribution of krw 10 billion per year, totaling krw 50 billion over five years,
together with wFH and its affiliates, to establish and operate the woori Microcredit Foundation.
the foundation appointed famous people from the religious, academic and social welfare circles as outside
directors, ensuring the fairness of the project and the support of citizens.
there are nine branches across the nation with 28 employees.
Active Implementation
of Socially Responsible
Finance
major Performance achievements of the microcredit
Foundation
By extending support to the financially vulnerable, the
socially neglected and those who lack financial access,
we extended microcredit loans worth KRW 279 billion
in 2015, leading the way in practicing socially responsi-
ble financing.
Microcredit services were developed with several prod-
ucts: ‘Woori New Hope Seed’ for low-credit low-in-
come customers; and ‘Transit Loan’, whereby citizens
suffering from high-interest rate loans could make the
transition to low-interest loans. Through microcredit
services, Woori Bank extended approximately KRW 95
billion of credit in 7,560 cases through 2015. In 2015,
pursuing the business goal of ‘microcredit leading to
self-sufficiency’, we achieved a tremendous increase in
microcredit extensions, by approaching customers and
developing customized products. Woori Bank extend-
ed approximately KRW 20.6 billion of new credit in 1,959
cases through 2015 (7,560 cases worth KRW 95 billion
in total).
This is not merely a voluntary activity: support has
been given so that recipients can become self-suffi-
cient through consulting and microcredit events in the
form of on-site visits that lend a helping hand and con-
sulting services.
microcredit that Helps achieve self-sufficiency
By extending support to the financially vulnerable, the
Woori Bank
annual report 2015
80
Woori Bank, WIll BEE your lifetime partner! si n c e r e p a r t n e r
Major Figures
for Woori Smile Microcredit
(unit : Cases)
(unit: krw billion)
5,601
74.2
7,560
95.0
2014
2015
2014
2015
socially neglected and those who lack finan-
cial access, we extended microcredit loans
worth KRW 279 billion in 2015, leading the
way in practicing socially responsible financ-
ing. Microcredit services were developed with
several products: ‘Woori New Hope Seed’
for low-credit low-income customers; and
‘Transit Loan’, whereby citizens suffering from
high-interest rate loans could make the transi-
tion to low-interest loans. Through microcre-
dit services, Woori Bank extended approxi-
mately KRW 95 billion of credit in 7,560 cases
through 2015. In 2015, pursuing the business
goal of ‘microcredit leading to self-sufficien-
cy’, we achieved a tremendous increase in
microcredit extensions, by approaching cus-
tomers and developing customized products.
Woori Bank extended approximately KRW
20.6 billion of new credit in 1,959 cases
through 2015 (7,560 cases worth KRW 95 bil-
lion in total).
This is not merely a voluntary activity: support
has been given so that recipients can become
self-sufficient through consulting and micro-
credit events in the form of on-site visits that
lend a helping hand and consulting services.
MICroCrEDIT
fouNDATIoN
KEy ProDuCTS
• business Start-up loan:
a loan for small-scale
registered entrepreneurs
to start a new business
• working Capital loan:
a loan for individual
entrepreneurs (who have
already been in business
for over six months) to
purchase products, raw
materials, etc.
• loan for Facility
improvement Funding:
a loan for individual
entrepreneurs (who have
already been in business
for over six months) to
improve their business
facilities.
• Sunshine loans for
university Students and
young people: a loan
for emergency funding
for young people and
university students who
are under 29 years old
(under 31 years of age
for men who served in
the military).
microcredit that Helps achieve self-suffi-
ciency
By extending support to the financially vulWe
plan to expand support by exploring low-in-
come industries with high levels of vulnera-
bility and sign agreements with traditional
market merchant councils and associations.
Meanwhile, we will secure exclusive channels
for better accessibility to microcredit. In ad-
dition, we will take the lead in promoting and
sharing the real role and purpose of microcre-
dit, together with society, and spread these
roles and directions by exploring and facilitat-
ing best practices, to raise confidence among
credit recipients.
Woori Bank will establish a foundation for the
self-sufficiency of low-credit low-income cus-
tomers through microcredit services, ensuring
the stabilization of livelihoods and improving
their welfare.
Woori Bank
annual report 2015
81
si n c e r e p a r t n e r
Ethical Management
in order to survive in an era of competition and achieve sustainable development, woori bank devised
the ‘woori Code of ethics’ and the ‘Code of Conduct’ to provide standards for employee work performance, so that
the importance of ethical management can be recognized together with corporate social responsibilities. based
on our trustworthy ethical finance principles implemented through the ‘woori Code of ethics’, we will contribute
to social development by fulfilling our social responsibilities, taking into account all stakeholders,
including customers, shareholders, employees, as well as the nation and society at large.
Review of 2015
raise awareness of ethical compliance and boost mo-
rale through incentives.
In 2015, Woori Bank strove to ensure that employees
could recognize and practice the concept of ethical
management. Every quarter we hold an event titled ‘My
Commitment to Compliance and Sound Business Prac-
tices’ for all employees. Also, in order to bolster ethical
and compliance awareness, we conduct self-monitor-
ing activities related to ethics and compliance every
month and upload training materials through the
bank’s internal network. Woori Bank continuously mon-
itors violations of legal compliance standards by mak-
ing compliance with ethical management standard our
core value and to reflect this in branch performance
evaluations. We aim to become an honest bank by
holding an award ceremony for outstanding employees
in ethical management and compliance monitoring to
strengthening Ethical management training
Woori Bank strengthens ethical training by including
ethical and compliance training programs in major
training courses for employees (including new employ-
ees, promoters, job training for existing employees,
etc.), as well as regularly holding in-house training for
compliance officers annually at the head office and at
branches. In order to make sure employees voluntar-
ily comply with laws and regulations, we hold ‘Ethical
and Compliance Self-monitoring’ and ‘Check & Clean
Day’ events every month to establish a consensus on
ethical management. We also strive to improve ethical
awareness and raise integrity awareness, by distribut-
ing training materials on ‘On-Site Ethical Management
Woori Bank
annual report 2015
82
Woori Bank, WIll BEE your lifetime partner! si n c e r e p a r t n e r
Plans for 2016
In 2016, we will translate our new Code of Ethics and
Code of Conduct into local languages, so that they can
be provided to overseas branches and foreign corpo-
rations to enhance local employee understanding of
ethical compliance. In order to strengthen the mindset
of bank employees towards ethical management, we
will conduct online and offline training programs, while
also producing videos on basic legal knowledge based
on examples from branches. We will strive to become
a leading bank in compliance by preventing financial
fraud and incidents with proactive internal control by
establishing a regular monitoring system and reinforc-
ing branch audits.
Compliance’ to all branches and publishing ‘Learning
Ethical Management Compliance with Case Studies’
every quarter.
supporting Branches
First, in order to provide legal advice that might be
needed urgently at branches, we have a system of pro-
viding prompt legal services. Also, we upload standard
legal advice (standard contracts) daily through our
legal portal system to help save time at branches. Sec-
ond, we have strengthened the prior review of terms
and conditions as well as new products with the aim
of protecting the rights of financial consumers, while
continuously conducting training for all employees by
reviewing processes and compliance procedures in ad-
dition to boosting product transparency.
Diverse Ethical management Programs
In order to become a clean bank, Woori Bank is imple-
menting diverse ethical management programs that
include: prohibiting stakeholders from benefiting from
conflicts of interest; establishing a system that reports
on benefits and gifts provided for business promotion;
facilitating a whistle-blowing system that allows you to
report on unfair actions by employees and irregulari-
ties; promoting a clean contract system that encour-
ages transparent contracts with companies taking part
in contracts and purchases; and establishing a system
for reporting on marketable securities accounts and
transactional information to ensure legal compliance
with marketable securities trading laws, including pro-
hibitions on insider trading.
Woori Bank
annual report 2015
83
fi n a n c i a l r e v i e w
5
Financial
review
management’s discussion and analysis ___ 085
independent auditor report ___ 096
Financial Statements ___ 098
organizational chart ___ 192
global network ___ 194
Woori Bank
annual report 2015
84
F i n a n c i a l r e v i e w
Management’s Discussion and Analysis
For the Years ended deCeMBer 31, 2015 and 2014
Summary of Management Performance
Despite the rapidly changing financial environment, 2015 was a busy year for Woori Bank with stronger inter-bank competition and
continued progression towards the goal of privatization. In the first half of the year, we successfully launched the 1st mobile bank
‘WiBee Bank’ in Korea in accordance with the growing market of FinTech, resulting in a new sensation in the mid-level interest rate
loan market. In November, Woori Bank took the lead in innovating the FinTech sector by establishing the Woori Bank-led consortium
for Internet-primary banks and gaining preliminary approval. Furthermore, the values of Woori Bank were enhanced and the founda-
tions for privatization were laid internally and externally. The Public Funds Oversight Committee announced the direction for imple-
mentation of Woori Bank’s privatization on 21 July 2015.
Woori Bank’s total assets (consolidated basis) in 2015 including affiliates reached KRW 318 trillion, an increase of approximately KRW
26 trillion compared with the previous year. Due to the decrease in credit loss as a result of continuous efforts made to maintain as-
set quality, Woori Bank’s net income increased to KRW 1.059 trillion as its operating profits increased (attributable to controlling in-
terests). This was a noticeable achievement when compared to the net income from continuing operations of 2014 at KRW 435.2 bil-
lion (excluding KRW 778.7 billion of net income from discontinued operations due to privatization), showing net interest income and
non-interest income both exceeding expectations with strong sales even though there was a huge minus factor in interest income
due to the benchmark interest rate being lowered four times over the previous 2 years. Moreover, the ROA and ROE increased to 0.37%
and 5.69%, respectively, and the delinquency ratio and the NPL ratio greatly improved compared with the previous year, recording
0.82% and 1.47% (NPL 1.24% excludes the top four shipbuilders), respectively. As a result, Woori Bank can maintain the same level of
asset quality with competitors, which has been a sticking point in enhancing corporate value for several years. Woori Bank hopes to
improve yet further on this result and will continue to make efforts to improve asset quality in 2016.
Woori Bank’s total assets (separate basis) reached KRW 276.5 trillion, an increase of approximately KRW 20 trillion, recording a no-
ticeable achievement, while the number of new customers increased by more than 1 million, the largest increase amongst all Korean
commercial banks. Furthermore, outstanding achievements made domestically and internationally reaffirmed a positive future for
Woori Bank, including its having served as the treasury bank for the Seoul Metropolitan Government for more than 100 years, the
huge popularity of WiBee Talk, and receiving preliminary approval for K-Bank. In global business, Woori Bank was the first Korean
bank to acquire a local bank in Indonesia, Saudara Bank, and successfully launch ‘Woori Saudara Bank’. As of the end of 2015, Woori
Bank’s 205 overseas networks in 23 countries (including global desks and RMs) stood as the largest overseas network among Kore-
an commercial banks. This will continue to strengthen Woori Bank’s global presence and contribute towards achieving its ultimate
goal in becoming one of ‘Asia’s Top 10, Global Top 50 Bank’ by 2020. Woori Bank plans to secure 300 global networks by the end of
2016 to create diverse sources of income and become a leading global bank.
Woori Bank’s operating profits (separate basis) reached KRW 1.09 trillion, an increase of approximately KRW 220 billion compared
with the previous year. Moreover, the net income reached KRW 934.6 billion due to the huge decrease in credit loss as a result of
continuous efforts made to improve asset quality. However, a prolonged low interest rate environment and low growth in the global
economy inevitably caused the Net Interest Margin (NIM) to decline continuously. This resulted in insufficient maximization of earn-
ings compared to our quantitative growth.
Woori Bank
Annual Report 2015
85
F
i
n
a
n
c
i
a
l
R
e
v
i
e
w
F i n a n c i a l r e v i e w
Management’s Discussion and Analysis
For the Years ended deCeMBer 31, 2015 and 2014
The financial forecast for 2016 is not bright. It is expected that the benchmark interest rate will continue to fall due to the prolonged
low interest rate environment, and preparations should be made for uncertainties arising from the government’s major economic
and financial policies on exchange rates and oil prices. Other problems include the government’s continuous efforts to restructure
conglomerates, delayed normalization of ailing companies due to the global economic recession, and the burden on financial sound-
ness because of increasing household debts. Moreover, due to the emergence of FinTech referring to the convergence of finance
and technology, it has become necessary to prepare for a paradigm shift in the FinTech sector.
In order to make 2016 the first year of successful privatization, Woori Bank has decided on ‘Becoming a Strong Bank’ as its manage-
ment goal, and will work towards strengthening internal growth to increase profits through five management strategies.
Firstly, Woori Bank will achieve No.1 status with increased results to acquire market dominance in all areas. In particular, Woori Bank
will further increase non-interest income by focusing more on the asset management and retirement markets, with the ISA being in-
troduced for the first time.
Secondly, Woori Bank will become a ‘Clean Bank’ that achieves qualitative asset growth without bad loans in 2016. A medium to
long-term action plan will be implemented to improve capital adequacy which had widened the gap with other banks due to exces-
sive credit losses in the past.
Thirdly, Woori Bank will add online marketplace and community functions to WiBee Bank and WiBee Talk platforms so that they can
be expanded into a lifestyle product amongst customers and companies and be actively used in marketing activities. In 2016, Woori
Bank will take the lead in innovating markets for FinTech and seek new business opportunities linked with the banking sector.
Fourthly, in order to overcome the limitations resulting from saturated domestic markets, Woori Bank will expand to 300 overseas
networks mainly in Southeast Asia, as well as introduce WiBee Bank and card businesses based on the accumulated knowledge
from the domestic market, thereby diversifying sources of income through retail sales in overseas markets.
Fifthly, in order to enhance the organization’s productivity, Woori Bank will optimize branches and improve the operational efficiency
of its workforce, ensuring that all employees can work to the utmost of their abilities.
By implementing these five management strategies, Woori Bank will strive to achieve further growth and become a bank that places
customer and shareholder happiness and satisfaction as our top priority.
Woori Bank
Annual Report 2015
86
F i n a n c i a l r e v i e w
Management’s Discussion and Analysis
For the Years ended deCeMBer 31, 2015 and 2014
Financial Position (Consolidated Financial Statements)
Woori Bank and subsidiary companies
(Unit: KRW 1 million, %)
Classification
assets
Cash and cash equivalents
Financial assets at fair value through profit or loss
Available-for-sale financial assets
Held-to-maturity financial assets
Loans and receivables
Investments in joint ventures and associates
Investment properties
Premises and equipment
Intangible assets and goodwill
Assets held for sale
Current tax assets
Deferred tax assets
Derivative assets
Other assets
total assets
LIaBILItIes
Financial liabilities at fair value through profit or loss
Deposits due to customers
Borrowings
Debentures
Provisions
Net defined benefit liability
Current tax liabilities
Deferred tax liabilities
Other financial liabilities
Other liabilities
total liabilities
eQUItY
owners’ equity
Capital stock
Hybrid securities
Capital surplus
Other equity
Retained earnings
non-controlling interests
total equity
total liabilities and equity
2015
(182nd term)
2014
(181st term)
Change
Change
rate
11.42
12.70
(8.72)
4.42
9.61
(0.71)
(1.69)
(1.20)
41.96
123.44
39.98
(18.33)
(6.60)
(1.29)
8.03
29.35
10.94
13.14
(11.68)
(25.35)
31.88
(63.54)
(10.93)
0.44
(21.88)
8.13
6.70
0
31.32
1.10
(35.34)
(3.10)
10.48
6.72
8.03
6,644,055
5,132,657
5,962,861
4,554,180
681,194
578,477
17,170,592
18,810,845
(1,640,253)
13,621,640
13,044,448
577,192
244,842,062
223,370,135
21,471,927
643,861
351,496
2,471,206
419,806
17,904
6,782
210,597
183,128
143,286
648,436
357,550
2,501,102
295,728
8,013
4,845
257,858
196,061
145,157
(4,575)
(6,054)
(29,896)
124,078
9,891
1,937
(47,261)
(12,933)
(1,871)
291,859,072
270,157,219
21,701,853
3,460,561
2,675,354
785,207
209,141,826
188,516,465
20,625,361
20,033,917
17,707,595
2,326,322
21,898,859
24,795,904
(2,897,045)
692,009
(175,408)
516,601
99,691
108,943
19,379
75,591
298,762
21,757
24,100
(189,819)
(2,378)
74,519
16,964,206
16,889,687
305,174
390,670
(85,496)
272,549,157 252,063,794
20,485,363
19,188,472
17,983,501
1,204,971
3,381,392
3,334,002
294,259
3,381,392
2,538,823
291,066
(1,547,303)
(2,393,138)
0
795,179
3,193
845,835
13,726,122
14,165,358
(439,236)
121,443
109,924
11,519
19,309,915
18,093,425
1,216,490
291,859,072
270,157,219
21,701,853
Woori Bank
Annual Report 2015
87
F i n a n c i a l r e v i e w
Management’s Discussion and Analysis
For the Years ended deCeMBer 31, 2015 and 2014
As of the end of 2015, Woori Bank’s total assets and total liabilities (consolidated financial statements) including subsidiary compa-
nies increased to KRW 292 trillion and KRW 272 trillion, respectively, each up showing an increase of KRW 21.7 trillion and KRW 20.5
trillion when compared with the previous year. This was mainly due to the sound loan growth and the increase of deposit liabilities.
As of the end of 2015, Woori Bank’s total assets (separate financial statements) increased from KRW 256 trillion to KRW 276.5 tril-
lion, up KRW 20 trillion from the previous year. This was mainly due to the increase of loans in Won, with a huge growth of approxi-
mately KRW 13 trillion (16.2%) in household loans due to lowered interest rates and the government’s deregulation efforts.
Total loans recorded KRW 257.7 trillion, an increase of KRW 19 trillion year on year. As a result of actively attracting deposits, the de-
posit liabilities increased by KRW 19 trillion, while other financial liabilities, including issued debentures, have all slightly decreased.
Total equity increased by approximately KRW 1 trillion year on year due to factors like the increase of net income and the issuance of
hybrid securities.
As of December 2015, the loan-to-deposits ratio (LTD ratio) was 98.8% according to the revised formula for the banking sector, and
thus maintaining the LTD ratio of less than 100% and complying with the LTD ratio regulation.
Income Statement (Consolidated Financial Statements)
Woori Bank and subsidiary companies
(Unit: KRW 1 million, %)
Classification
operating income
Net interest income
Net fees and commissions income
Dividend income
Net gain on financial instruments at fair value through profit or loss
Net loss on available-for-sale financial assets
Impairment losses on credit loss
General and administrative expenses
Net other operating expenses
non-operating income (loss)
net income before income tax expense
Income tax expense
net income from continuing operations
net income from discontinued operations
(Continued)
2015
(182nd term)
2014
(181st term)
Change
1,351,586
897,708
4,761,900
4,493,018
976,796
102,923
240,342
917,015
96,812
189,912
(3,281)
(68,924)
(966,646)
(1,096,940)
(3,150,387)
(2,958,919)
(610,061)
(674,266)
100,360
1,451,946
376,554
(63,313)
834,395
288,195
1,075,392
546,200
-
661,769
Change
rate
50.56
5.98
6.52
6.31
26.55
95.24
(11.88)
6.47
9.52
453,878
268,882
59,781
6,111
50,430
65,643
130,294
191,468
64,205
163,673
Turn into profit
617,551
88,359
529,192
-
74.01
30.66
96.89
-
Woori Bank
Annual Report 2015
88
F i n a n c i a l r e v i e w
Management’s Discussion and Analysis
For the Years ended deCeMBer 31, 2015 and 2014
Woori Bank and subsidiary companies
(Unit: KRW 1 million, %)
Classification
net income
Net income attributable to owners
Income from continuing operations
Income from discontinued operations
Net income (loss) attributable to non-controlling interests
Income from continuing operations
Income from discontinued operations
other comprehensive income (loss), net of tax
Items that will not be reclassified to profit or loss
Items that may be reclassified to profit or loss
total comprehensive income
Comprehensive income attributable to owners
Comprehensive income (loss) attributable to non-controlling interests
earnings per share
Continuing and discontinued operations
Basic and diluted earnings per share (In Korean Won)
Continuing operations
Basic and diluted earnings per share (In Korean Won)
Change
rate
(10.98)
(12.75)
143.32
-
2015
(182nd term)
2014
(181st term)
Change
1,075,392
1,207,969
(132,577)
1,213,980
(154,823)
1,059,157
1,059,157
-
16,235
16,235
435,289
778,691
(6,011)
110,911
623,868
-
22,246
Turn into profit
(94,676)
(85.36)
-
(116,922)
-
-
31,162
(107,597)
138,759
Turn into profit
(78,267)
109,429
(51,650)
(55,947)
(26,617)
(51.53)
165,376
Turn into profit
1,106,554
1,100,372
1,094,870
11,684
1,192,191
(91,819)
6,182
(97,321)
0.56
(8.16)
103,503
Turn into profit
1,301
1,301
1,621
(320)
(19.74)
536
765
142.72
In 2015, Woori Bank’s net income (based on the net income from continuing operations attributable to owners) including subsidiary
companies reached KRW 1.059 trillion, an increase of 143.3% from the previous year.
This was a noticeable achievement when compared to the net income from continuing operations of 2014 at KRW 435.2 billion
(excluding KRW 778.7 billion of net income from discontinued operations due to privatization), showing net interest income and
non-interest income both exceeding expectations with strong sales even though interest income inevitably decreased due to the
benchmark interest rate being lowered four times in the previous 2 years. The net income and the non-interest income (fees and
commission income, dividend income, gain on disposition of marketable securities and other operating profits) increased by KRW
268.9 billion and KRW 246 billion, respectively, from the previous year.
Furthermore, the credit loss (impairment loss on credit loss) decreased by KRW 130.3 billion (11.8%) from the previous year due to
continuous risk management efforts and implementing policies to improve asset quality.
According to each subsidiary, Woori Bank recorded KRW 934.6 billion in net income for separate financial statements (an increase
of approximately KRW 290 billion from the previous year), while Woori Card and Woori Investment Bank recorded KRW 116.9 billion
and KRW 10.8 billion, respectively.
Woori Bank
Annual Report 2015
89
F i n a n c i a l r e v i e w
Management’s Discussion and Analysis
For the Years ended deCeMBer 31, 2015 and 2014
Profitability
Woori Bank and subsidiary companies
Classification
Return on Assets (ROA)
Return on Equity (ROE)
Deposit-loan interest spread in Won
Net Interest Margin (NIM)
2015
(182nd term)
2014
(181st term)
0.37
5.69
1.73
1.41
0.211)
3.551)
1.96
1.56
(Unit: %)
2013
(180th term)
0.141)
2.561)
2.24
1.82
1) Excluding one-off factors related to sale and the spin-off of subsidiaries (ROA and ROE recorded 0.41% and 7.06%, respectively, including one-off
factors related to sale and the spin-off of subsidiaries for the 181st term).
2) Deposit-loan interest spread in Won and the NIM are based on K-IFRS financial statements.
3) Deposit-loan interest spread in Won is the amount calculated by the revised formula.
4) The ROA and the ROE for the 180th term has been drawn up corresponding to the consolidated financial statement (reflecting the accounting ef-
fects resulting from the merger between Woori Bank and Woori Finance Holdings that occurred in the 181st term).
The nominal net interest margin recorded a quarter-on-quarter decrease of 1.41% due to the effects of lowering interest rates twice.
Nevertheless, the ROA and the ROE continuously improved due to Woori Card’s expansion of market share and Woori Bank’s con-
tinuous efforts to improve profitability and soundness.
In 2016, Woori Bank will minimize the decrease of NIM by reducing funding cost originated by increasing low cost deposits, and
improve operational structure by seeking appropriate margins with all-in margin strategies, thereby will achieve further growth and
actively manage profitability.
Woori Bank
Annual Report 2015
90
F i n a n c i a l r e v i e w
Management’s Discussion and Analysis
For the Years ended deCeMBer 31, 2015 and 2014
Liquidity Ratio
Classification
Liquidity Coverage Ratio (LCR)1)
Liquidity Ratio in foreign currency
Before applying liquidity weight
After applying liquidity weight
(Unit: %)
2015
(182nd term)
2014
(181st term)
2013
(180th term)
106.67
130.30
120.7 1
123. 10
130.29
1 2 1.29
120.75
133.55
125.86
1) In 182nd term , Liquidity Coverage Ratio(LCR) was implemented due to the revision and In 181st term and In 180th term, liquidity ratio in Won was im-
plemented.
* LCR (consolidated financial statements, including foreign currency) = Highly liquid assets / Net cash outflows
(More than 80% of supervision requirements, an increase of 5% every year, more than 100% will be implemented by 2019)
** Liquidity ratio in Won (separate financial statements) = (maturity of one month or less) assets/ liabilities (more than 100% of supervision require-
ments)
Asset Quality
Classification
2015(182nd term)
2014(181st term)
2013(180th term)
Indicators
change
Indicators
change
Indicators
change
(Unit: KRW 1 million, %)
Non-Performing Loan
31,009
-9,207
40,216
-13,376
53,592
24,947
Non-Performing Loan Ratio2)
Coverage ratio3)
Delinquency Ratio4)
1.47
121.53
0.82
-0.63
24.37
-0.06
2.10
97.16
0.88
-0.89
14.89
-0.26
2.99
82.27
1.14
1.33
-64.65
-0.06
1) The details of percentage change indicate amount or ratio increased/decreased.
2) The NPL ratio excluding the top four shipbuilders in 2015, 2014 and 2013 are 1.24%, 1.62% and 2.31%, respectively.
3) Coverage ratio = (Total allowance and additional capital reserve for loan losses based on the calculation of non-performing loan / Non-Performing
Loan (NPL) X 100
4) Delinquency ratio before seasonal adjustment
As a result of implementing management strategies that placed the priority on improving asset quality during the past year,
Non-Performing Loan (NPL) ratio recorded 1.24%, a year-on-year decrease of 0.38% as of the end of 2015 when excluding the NPL
of the top four shipbuilders.
The delinquency ratio recorded 0.82%, showing an improvement of 0.06% from the previous year. The coverage ratio also greatly
increased from 97.16% to 121.53% from the previous year as a result of accumulating loan loss provision for economically sensitive
sectors and prepare for economic uncertainties in the future, including shipbuilding, shipping etc.
In 2016, Woori Bank will continuously improve asset quality through various efforts, including the prevention of NPL, the decrease of
substandard or below loans through preemptive management and the management of appropriate loan loss provisioning.
Woori Bank
Annual Report 2015
91
F i n a n c i a l r e v i e w
Management’s Discussion and Analysis
For the Years ended deCeMBer 31, 2015 and 2014
Capital Adequacy
BIS equity capital
Risk weighted assets (RWA)
BIS ratio
2015
(182nd term)
210,514
1,540,709
13.66
2014
(181st term)
208,577
1,463,230
14.25
(Unit: KRW 100 million, %)
2013
(180th term)
261,388
2,009,778
13.01
1) Based on Korean International Financial Reporting Standards (K-IFRS) consolidated financial statements.
2) Calculated based on BASEL III starting with the 180th term report.
3) The amounts for the 180th term were drawn up corresponding to the auditing of consolidated financial statements (reflecting the accounting ef-
fects resulting from the merger between Woori Bank and Woori Finance Holdings that occurred in the 181st term).
- The amounts publicly announced for the 180th term (based on consolidate financial statements before reflecting accounting effects resulting from
the merger between Woori Bank and Woori Finance Holdings) including KRW 20,382,942 million for the BIS equity capital, KRW 131,313,279 million
for the risk weighted assets, and 15.52% for the BIS ratio.
In 2015, the BIS capital adequacy increased slightly from the previous year as a result of Woori Bank issuing Basel III compliant KRW
240 billion and US$ 500 million of contingent capital securities, and the increase of net income. However, the BIS ratio dropped
slightly with an increase of 5.3% of risk-weighted assets. Overall, in 2015 we have sufficiently exceeded the minimum requirement
level(8%) of Basel III, and we will implement mid to long term plans to reduce the risk weighted assets through systematic manage-
ment, implement adequate asset growth and increase the ratio of high-quality assets. Also, Woori Bank will effectively manage cap-
ital adequacy by issuing hybrid securities and maintain stable net income & dividend payout ratio, while complying sufficiently with
the BIS ratio.
Woori Bank
Annual Report 2015
92
F i n a n c i a l r e v i e w
Management’s Discussion and Analysis
For the Years ended deCeMBer 31, 2015 and 2014
Sources of Fund
Bank account
Classification
(Base date: December 31, 2015, Unit: KRW 1 million, %)
2015(182nd term)
Interest
Average
rate
balance
Portion
2014(181st term)
Interest
Average
rate
balance
Portion
2013(180th term)
Interest
Average
rate
balance
Portion
Funds in
Won
Deposits in Won
169,919,620
Certificate of Deposit
1,879,832
Borrowings in Won
Call Money in Won
6,689,135
1,370,253
1.70
1.92
1.77
1.62
64.76
157,994,039
2.22
66.89
146,162,283
2.51
65.13
0.72
2.55
0.52
7.22
1,983,619
5,675,238
984,378
15,925,666
2.71
2.31
2.28
3.69
2.36
0.44
0.84
2.40
0.42
6.74
2,316,413
4,696,737
1,207,035
15,394,073
77.29
169,776,541
3.38
7,280,806
2.80
2.28
2.56
4.20
2.66
0.49
1.03
2.09
0.54
6.86
75.65
3.24
18,944,493
2.95
198,803,334
1.82
75.77 182,562,940
11,568,322
0.44
4.41
7,973,812
Funds in
foreign
currency
Others
subtotal
Deposits in foreign
currency
Foreign currency
borrowings
Foreign call money
Finance debentures
issued in foreign
currency
Others
subtotal
Others
Total equity
Allowance for
Doubtful Accounts
Others
subtotal
9,245,073
0.53
3.52
6,357,072
0.50
2.69
7,477,963
0.66
3.33
1,199,484
4,851,289
0.53
2.72
0.46
1.85
1,242,371
5,559,305
0.54
3.51
0.53
2.35
449,726
5,252,757
0.77
4.01
0.20
2.34
650,409
0.66
0.25
918,010
27,514,577
0.88
10.49
22,050,569
18,501,137
640,666
16,907,843
36,049,647
-
-
-
-
7.05
0.24
18,225,902
594,945
6.44
12,779,094
13.74
31,599,941
1.03
1.26
-
-
-
-
0.39
9.34
7.72
0.25
1,231,130
21,692,382
18,391,558
654,036
5.41
13,908,781
13.38
32,954,375
1.47
1.46
-
-
-
-
0.55
9.67
8.20
0.29
6.20
14.68
total
262,367,557
1.47 100.00 236,213,449
1.94 100.00 224,423,298
2.15 100.00
1) Deposits in Won = Deposits in Won – Deposit checks & bills in process of collection – Reserve deposits with BOK – Inter-bank adjustment funds (Call
loans)
* Deposit checks & bills in process of collection = Total checks and bills in process of collection – Checks & bills on clearing for overdrafts – In-
ter-bank adjustment funds (Call money)
* Interests for calculating interest rates are the sum of interests on deposits and installment deposits and deposit insurance premiums.
2) Deposits in foreign currency = Deposits in foreign currency + Off-shore deposits in foreign currency
3) Foreign currency borrowings = Foreign currency borrowings + Due to BOK in foreign currency + Off-shore borrowings in foreign currency
4) Finance debentures issued in foreign currency = Finance debentures issued in foreign currency + Off-shore finance debentures issued in foreign
currency
5) Based on Korean International Financial Reporting Standards (K-IFRS) financial statements.
6) Excluding merchant banking accounts.
Woori Bank
Annual Report 2015
93
F i n a n c i a l r e v i e w
Management’s Discussion and Analysis
For the Years ended deCeMBer 31, 2015 and 2014
Overall, the funds in Won increased by KRW 16.3 trillion, and the deposits in Won, which is the major funding category of funds in
Won, increased by KRW 12 trillion. The borrowings in Won and the call money in Won also increased slightly from the previous year.
Overall, the funds in foreign currency increased by KRW 5.5 trillion, contributing to the increase of approximately KRW 2.9 trillion
and KRW 3.6 trillion, for borrowings in foreign currency and deposits in foreign currency respectively, from the previous year due to
the increase of exchange rates.
Funding rates continued to fall due to the stability of financial market and the decrease of the benchmark interest rate by BOK. Prof-
itability therefore will be achieved by acquiring low cost deposits and repaying or refunding borrowings and debentures with high
funding costs.
Applications of Fund
Bank account
Classification
Funds in
Won
Funds in
foreign
currency
Others
Deposits in Won
Marketable securities in Won
Loans in Won
Advance Payments on
Acceptances and
Guarantees
Call Loans in Won
Privately Placed Bonds
Credit Card Receivables
Credit Card Receivables
Allowance for Doubtful
Accounts in Won
subtotal
Deposits in foreign currency
Interest on securities in
foreign currency
Loans in foreign currency
Call Loans in foreign currency
Bills Bought in Foreign
Currency
Others
Allowance for Doubtful
Accounts in Foreign
Currency
subtotal
Cash
Property, plant and
equipment for business
Others
subtotal
(Base date: December 31, 2015, Unit: KRW 1 million, %)
2015(182nd term)
Interest
Average
rate
balance
Portion
2014(181st term)
Interest
Average
rate
balance
Portion
2013(180th term)
Interest
Average
rate
balance
Portion
2,580,842
32,994,958
176,631,188
1.72
2.79
3.42
0.98
12.58
67.32
2,670,185
31,496,840
161,296,709
1.13
2.37
3.40
13.33
4.18 68.28
2,913,038
30,285,861
149,019,789
1.30
2.59
3.17
13.50
4.62 66.40
64,533
1.89
0.02
69,099
4.27
0.03
140,958
3.06
0.06
2,083,053
280,702
-
4,313,781
1.64
5.98
-
2.61
0.79
0.11
0.00
1.64
2,186,891
470,988
6
3,967,556
2.32
4.12
-
3.50
0.93
0.20
0.00
1.68
2,037,985
595,478
1,024,468
3,992,330
2.62
8
21.67
3.86
0.91
0.26
0.46
1.78
-2,482,955
-
-0.95
-3,073,009
-
-1.30
-3,202,673
-
-1.43
216,466,103
2,872,735
3.31 82.50 199,085,264
2,044,084
0.28
1.09
4.06 84.28 186,807,234
1,452,047
0.47
0.87
4.5 83.24
0.65
0.33
1,375,146
1.51
0.52
1,073,932
0.85
0.45
972,378
2.85
0.43
14,206,736
2,040,819
1.65
0.59
5.41
0.78
12,364,024
1,347,232
1.71
0.94
5.23
0.57
12,393,208
1,688,820
2.13
0.76
5.52
0.75
6,899,811
1.38
2.63
5,425,038
1.40
2.30
5,054,080
1.66
2.25
17,047
6.96
0.01
19,509
6.36
0.01
39,732
7.55
0.02
-191,224
-
-0.07
-239,896
-
-0.10
-300,758
-
-0.13
27,221,069
1,116,715
1.37
-
10.38
0.43
22,033,923
1,076,521
1.46
-
2,328,130
15,235,540
18,680,385
-
-
-
0.89
2,358,135
5.81
7.12
11,659,606
15,094,262
-
-
-
9.33
0.46
1.00
4.94
6.39
21,299,507
993,256
1.86
-
2,367,010
12,956,291
16,316,557
-
-
-
9.49
0.44
1.06
5.77
7.27
total
262,367,557
2.87 100.00 236,213,449
3.56 100.00 224,423,298
3.92 100.00
Woori Bank
Annual Report 2015
94
F i n a n c i a l r e v i e w
Management’s Discussion and Analysis
For the Years ended deCeMBer 31, 2015 and 2014
1) Deposits in Won = Deposits in Won – Reserve deposits with BOK
2) Marketable securities in Won = Marketable securities in Won + Loaned securities in Won
* Interests for calculating interest rates = Securities interests (including dividend received) + Evaluation profit (net) + Gain on redemption of securities (net) +
Excluding the portion of gain from stock transactions (net) out of gains on sales of securities
3) Loans in Won = Loans in Won + Checks & bills on clearing for overdrafts
* Interests for calculating interest rates = Interest on loans in Won – Contribution to the Korea Credit Guarantee Fund
4) Deposits in foreign currency = Deposits in foreign currency + off-shore deposits in foreign currency
5) Interest on securities in foreign currency = Interest on securities in foreign currency + Loaned securities in foreign currency
* Interests for calculating interest rates = Securities interests (including dividend received) + Evaluation profit (net) + Gain on redemption of securities (net) +
Excluding the portion of gain from stock transactions (net) out of gains on sales of securities
6) Loans in foreign currency = Loans in foreign currency + Off-shore loans in foreign currency + Inter-bank loans in foreign currency + Loans from foreign bor-
rowings + Domestic import usance bill
7) Cash = Cash – Total checks & bills in process of collection
8) Property, plant and equipment for business = Property, plant and equipment for business – Accumulated depreciation
9) Based on Korean International Financial Reporting Standards (K-IFRS) financial statements.
10) Excluding merchant banking accounts.
Woori Bank’s loans in Won increased by approximately KRW 15.3 trillion from the previous year, which resulted from the sudden in-
crease of the fixed-rate household loans for housing and the expansion of new loans targeting high-performing SMEs encouraged
by the government’s deregulation and the decrease of interest rates.
Overall, the funds in foreign currency increased by approximately KRW 5.2 trillion (loans in foreign currency KRW 1.9 trillion, the bills
bought in foreign currency KRW 1.4 trillion, and the deposits in foreign currency KRW 800 billion).
The interest rates of loans in Won that account for the largest portion of management items decreased by 0.44%p from the previous
year, and the interest rates of overall operating funds decreased by 0.36%p from the previous year.
Woori Bank
Annual Report 2015
95
F i n a n c i a l r e v i e w
Deloitte Anjin LLC
9F., One IFC,
10, Gukjegeumyung-ro
Youngdeungpo-gu, Seoul
07326, Korea
Tel: +82 (2) 6676 1000
Fax: +82 (2) 6674 2114
www.deloitteanjin.co.kr
Independent Auditor Report
INDEPENDENT AUDITORS’ REPORT (큰제목)
English Translation of Independent Auditors‘ Report Originally Issued in Korean on March 4, 2016
To the Shareholders and the Board of Directors of
Woori Bank:
Report on the Financial Statements
We have audited the accompanying consolidated financial statements of Woori Bank and its
subsidiaries (the ―Group‖), which comprise the consolidated statements of financial position as of
December 31, 2015 and December 31, 2014, respectively, and the consolidated statements of
comprehensive income, consolidated statements of changes in shareholders‘ equity and consolidated
statements of cash flows, for the years then ended, and a summary of significant accounting policies
and other explanatory information.
Management’s Responsibility for the Consolidated Financial Statements
Management is responsible for the preparation and fair presentation of these consolidated financial
statements in accordance with Korean International Financial Reporting Standards (―K-IFRS‖) and for
such internal control as management determines is necessary to enable the preparation of consolidated
financial statements that are free from material misstatement, whether due to fraud or error.
Auditors’ Responsibility
Our responsibility is to express an audit opinion on these financial statements based on our audits. We
conducted our audits in accordance with Korean Standards on Auditing (―KSAs‖). Those standards
require that we comply with ethical requirements and plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures
in the financial statements. The procedures selected depend on the auditors‘ judgment, including the
assessment of the risks of material misstatement of the financial statements, whether due to fraud or
error. In making those risk assessments, the auditor considers internal control relevant to the entity‘s
preparation and fair presentation of the financial statements in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness
of the entity‘s internal control. An audit also includes evaluating the appropriateness of accounting
policies used and the reasonableness of accounting estimates made by management, as well as
evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
our audit opinion.
Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee (“DTTL”),
its network of member firms, and their related entities. DTTL and each of its member firms are legally separate and independent entities.
DTTL (also referred to as “Deloitte Global”) does not provide services to clients.
Please see www.deloitte.com/kr/about for a more detailed description of DTTL and its member firms.
Member of Deloitte Touche Tohmatsu Limited
Woori Bank
Annual Report 2015
96
Opinion
F i n a n c i a l r e v i e w
In our opinion, the consolidated financial statements present fairly, in all material respects, the
financial position of the Group as of December 31, 2015 and December 31, 2014, respectively, and its
financial performance and its cash flows for the years then ended in accordance with K-IFRS.
Opinion
March 4, 2016
In our opinion, the consolidated financial statements present fairly, in all material respects, the
financial position of the Group as of December 31, 2015 and December 31, 2014, respectively, and its
financial performance and its cash flows for the years then ended in accordance with K-IFRS.
March 4, 2016
Notice to Readers
This report is effective as of March 4, 2016, the auditors‘ report date. Certain subsequent events or
circumstances may have occurred between the auditors‘ report date and the time the auditors‘ report is
read. Such events or circumstances could significantly affect the consolidated financial statements and
may result in modifications to the auditors‘ report.
Notice to Readers
This report is effective as of March 4, 2016, the auditors‘ report date. Certain subsequent events or
circumstances may have occurred between the auditors‘ report date and the time the auditors‘ report is
read. Such events or circumstances could significantly affect the consolidated financial statements and
may result in modifications to the auditors‘ report.
Woori Bank
Annual Report 2015
97
F i n a n c i a l r e v i e w
Woori Bank and Subsidiaries Consolidated
Statements of Financial Position
WOORI BANK AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
AS OF DECEMBER 31, 2015 AND 2014
as oF deCeMBer 31, 2015 and 2014
ASSETS
Cash and cash equivalents (Note 6)
Financial assets at fair value through profit or loss
(Notes 4,7,11,12,18 and 26)
Available-for-sale financial assets (Notes 4,8,11,12 and 18)
Held-to-maturity financial assets (Notes 4,9,11,12 and 18)
Loans and receivables (Notes 4,10,11, 12,18 and 45)
Investments in joint ventures and associates (Note 13)
Investment properties (Note 14)
Premises and equipment (Notes 15 and 18)
Intangible assets and goodwill (Note 16)
Assets held for sale (Note 17)
Current tax assets (Note 42)
Deferred tax assets (Note 42)
Derivative assets (Notes 11,12 and 26)
Other assets (Notes 19 and 45)
Total assets
LIABILITIES
Financial liabilities at fair value through profit or loss
(Notes 4,11,12,20 and 26)
Deposits due to customers (Notes 4,11,21 and 45)
Borrowings (Notes 4,11,12 and 22)
Debentures (Notes 4,11 and 22)
Provisions (Notes 23, 44 and 45)
Net defined benefit liability (Note 24)
Current tax liabilities (Note 42)
Deferred tax liabilities (Note 42)
Other financial liabilities (Notes 4,11,12, 25 and 45)
Other liabilities (Notes 25 and 45)
Total liabilities
(Continued)
December 31,
December 31,
2015
2014
(Korean Won in millions)
6,644,055
5,962,861
5,132,657
17,170,592
13,621,640
244,842,062
643,861
351,496
2,471,206
419,806
17,904
6,782
210,597
183,128
143,286
291,859,072
4,554,180
18,810,845
13,044,448
223,370,135
648,436
357,550
2,501,102
295,728
8,013
4,845
257,858
196,061
145,157
270,157,219
3,460,561
209,141,826
20,033,917
21,898,859
516,601
99,691
108,943
19,379
16,964,206
305,174
272,549,157
2,675,354
188,516,465
17,707,595
24,795,904
692,009
75,591
298,762
21,757
16,889,687
390,670
252,063,794
Woori Bank
Annual Report 2015
98
F i n a n c i a l r e v i e w
WOORI BANK AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
AS OF DECEMBER 31, 2015 AND 2014 (CONTINUED)
EQUITY
Owners‘ equity:
Capital stock (Note 28)
Hybrid securities (Note 29)
Capital surplus (Note 28)
Other equity (Note 30)
Retained earnings (Notes 31and 32)
(Regulatory reserve for credit loss as of December 31, 2015 and 2014
is 1,756,142 million Won and 1,800,387 million Won, respectively)
(Regulatory reserve for credit loss to be reserved (reversed) as of
December 31, 2015 and 2014 is 499,110 million Won and (-)44,245
million Won, respectively)
(Planned provision (reversal) of regulatory reserve for credit loss as
of December 31, 2015 and 2014 is 499,110 million Won and (-)
44,245 million Won, respectively)
Non-controlling interests
Total equity
Total liabilities and equity
December 31,
December 31,
2015
2014
(Korean Won in millions)
19,188,472
3,381,392
3,334,002
294,259
(1,547,303)
17,983,501
3,381,392
2,538,823
291,066
(2,393,138)
13,726,122
121,443
19,309,915
291,859,072
14,165,358
109,924
18,093,425
270,157,219
See accompanying notes to consolidated financial statements.
Woori Bank
Annual Report 2015
99
F i n a n c i a l r e v i e w
Woori Bank and Subsidiaries
Consolidated Statements of Comprehensive Income
WOORI BANK AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
FOR THE YEARS ENDED DECEMBER 31, 2015 AND 2014
For the Years ended deCeMBer 31, 2015 and 2014
Interest income
Interest expense
Net interest income (Notes 34 and 45)
Fees and commissions income
Fees and commissions expense
Net fees and commissions income (Notes 35 and 45)
Dividend income (Note 36)
Net gain on financial instruments at fair value through profit or loss (Note 37)
Net loss on available-for-sale financial assets (Note 38)
Impairment losses on credit loss (Notes 39 and 45)
General and administrative expenses (Notes 40 and 45)
Net other operating expenses (Notes 40 and 45)
Operating income
Share of losses of joint ventures and associates (Note 13)
Net other non-operating income
Non-operating income (loss) (Note 41)
Net income before income tax expense
Income tax expense (Note 42)
Net income from continuing operations
Net income from discontinued operations (Notes 47 and 48)
Net income
(Net income after the provision of regulatory reserve for credit loss for the
years ended December 31, 2015 and 2014 are 576,282 million Won and
1,252,214 million Won, respectively) (Note 32)
Remeasurement of the net defined benefit liability
Items that will not be reclassified to profit or loss
Gain (loss) on available-for-sale financial assets
Share of other comprehensive gain (loss) of joint ventures and associates
Gain on foreign currency translation of foreign operations
Loss on valuation of cash flow hedge
Items that may be reclassified to profit or loss
Other comprehensive income (loss), net of tax
Total comprehensive income
Net income attributable to:
Net income attributable to owners
Income from continuing operations
Income from discontinued operations
Net income (loss) attributable to non-controlling interests
Income from continuing operations
Income (loss) from discontinued operations
Total comprehensive income attributable to:
Comprehensive income attributable to owners
Comprehensive income (loss) attributable to non-controlling interests
Basic and diluted earnings from continuing and discontinued operations
per share (In Korean Won) (Note 43)
Basic and diluted earnings from continuing operations per share
(In Korean Won) (Note 43)
2015
2014
(Korean Won in millions,
except for per share data)
8,698,235
(3,936,335)
4,761,900
1,757,340
(780,544)
976,796
102,923
240,342
(3,281)
(966,646)
(3,150,387)
(610,061)
1,351,586
(70,124)
170,484
100,360
1,451,946
9,211,240
(4,718,222)
4,493,018
1,598,015
(681,000)
917,015
96,812
189,912
(68,924)
(1,096,940)
(2,958,919)
(674,266)
897,708
(67,980)
4,667
(63,313)
834,395
(376,554)
(288,195)
1,075,392
-
546,200
661,769
1,075,392
1,207,969
(78,267)
(78,267)
72,297
3,295
33,837
-
109,429
(51,650)
(51,650)
(75,586)
(1,604)
48,393
(27,150)
(55,947)
31,162
(107,597)
1,106,554
1,100,372
1,059,157
1,059,157
-
16,235
16,235
-
1,213,980
435,289
778,691
(6,011)
110,911
(116,922)
1,094,870
11,684
1,192,191
(91,819)
1,301
1,301
1,621
536
See accompanying notes to consolidated financial statements.
Woori Bank
Annual Report 2015
100
F i n a n c i a l r e v i e w
Woori Bank and Subsidiaries
Consolidated Statements of Changes in Equity
WOORI BANK AND SUBSIDIARIES
For the Years ended deCeMBer 31, 2015 and 2014
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
FOR THE YEARS ENDED DECEMBER 31, 2015 AND 2014
Capital
stock
Hybrid
securities
Capital
surplus
Other
equity
Retained
earnings
Controlling
interests
(Korean Won in millions)
4,030,077
498,407
176,502
-
-
-
-
29,957 13,112,690 17,847,633
1,213,980
1,213,980
-
-
-
-
-
-
-
-
1,880,798
178,058
(178,060)
Non-
controlling
interests
Total
equity
5,029,136 22,876,769
1,207,969
(8,042)
(6,011)
(8,042)
owners
(648,685)
(68,106) (2,238,228)
(110,405)
(3,065,424)
(286,564)
(3,351,988)
January 1, 2014
Net income (loss)
Dividends
Changes due to distribution to
Merger between Woori Bank
and Woori Finance Holdings
Merger between Indonesia
Woori Bank and Saudara
Bank
Changes in capital surplus of
consolidated subsidiaries
Increase in capital stock of
consolidated subsidiaries
Acquisition of treasury stock
Disposal of consolidated
subsidiaries
Gain (loss) on valuation of
available-for-sale financial
assets
Share of other comprehensive
income of joint ventures and
associates
Gain on foreign currencies
translation of foreign
operations
Cash flow hedge
Remeasurement of the net
defined benefit liability
Issuance of hybrid securities
Dividends to hybrid securities
Redemption of hybrid securities
in consolidated subsidiaries
Others
December 31, 2014
January 1, 2015
Net income
Dividends
Change in ownership interest of
investments in consolidated
subsidiaries and others
Gain (loss) on valuation of
available-for-sale financial
assets
Share of other comprehensive
income of joint ventures and
associates
Gain (loss) on foreign currencies
translation of foreign
operations
Remeasurement of the net
defined benefit liability
Dividends to hybrid securities
Issuance of hybrid securities
Retirement of treasury stock
Appropriation of merger losses
December 31, 2015
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
159,618
-
-
-
3,381,392 2,538,823
3,381,392 2,538,823
-
-
-
-
-
-
-
-
-
-
-
-
21,724
(23)
(17,110)
-
-
-
-
-
-
-
-
-
-
-
-
(37,580)
-
86,537
(2,974)
28,856
(18,220)
(63,426)
-
-
-
-
-
-
-
-
-
-
-
-
1,880,796
(1,880,798)
(2)
21,724
49,134
70,858
(23)
572
549
(17,110)
(37,580)
17,391
-
281
(37,580)
-
(1,900,347)
(1,900,347)
86,537
(97,181)
(10,644)
(2,974)
1,370
(1,604)
28,856
(18,220)
19,537
(8,851)
48,393
(27,071)
(764)
-
(50,129)
(64,190)
159,618
(50,129)
(683)
-
(116,721)
(64,873)
159,618
(166,850)
-
21
-
-
291,066 (2,393,138)
(13)
14,165,358
(1)
(1)
8
17,983,501
(702,994)
(702,995)
984
109,924 18,093,425
976
291,066 (2,393,138)
-
-
-
-
14,165,358
1,059,157
(504,952)
17,983,501
1,059,157
(504,952)
109,924 18,093,425
1,075,392
(505,776)
16,235
(824)
3,193
-
-
-
-
73,691
3,295
36,932
-
-
-
-
3,193
660
3,853
73,691
(1,394)
72,297
3,295
-
3,295
36,932
(3,095)
33,837
-
-
-
-
-
3,381,392
-
-
795,179
-
-
3,334,002
-
-
-
-
-
294,259
(78,204)
-
-
3,481
806,640
(1,547,303)
-
(183,320)
-
(3,481)
(806,640)
13,726,122
(78,204)
(183,320)
795,179
-
-
19,188,472
(63)
-
-
-
-
121,443
(78,267)
(183,320)
795,179
-
-
19,309,915
See accompanying notes to consolidated financial statements.
Woori Bank
Annual Report 2015
101
F i n a n c i a l r e v i e w
Woori Bank and Subsidiaries Consolidated
Statements of Cash Flows
WOORI BANK AND SUBSIDIARIES
For the Years ended deCeMBer 31, 2015 and 2014
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE YEARS ENDED DECEMBER 31, 2015 AND 2014
2015
2014
(Korean Won in millions)
1,075,392
1,207,969
376,554
(8,698,235)
3,936,335
(102,923)
(4,488,269)
(145,981)
(10,285,933)
5,207,289
(135,127)
(5,359,752)
966,646
3,281
111,487
-
20,982
56,532
72,062
132,131
240,764
10
2,707
2,990
-
-
-
1,609,592
55,773
41,363
-
59,003
25,235
854
61,653
6,814
539
-
-
-
-
251,234
1,202,152
93,639
123,038
82,077
22,253
87,476
81,073
132,768
247,216
1,788
2,788
2,320
2,420
7,728
46,782
2,135,518
34,830
55,674
39,485
85,975
23,317
744
31,899
1,134
533
159,794
1,039
337
259
435,020
(495,507)
(23,150,910)
1,922
20,620,287
(66,399)
(255,585)
1,205,411
(91,116)
(2,231,897)
1,547,502
(15,439,044)
(92,867)
14,052,504
(106,780)
(276,638)
(1,933,627)
(16,183)
(2,265,133)
8,692,851
(4,355,880)
100,368
(534,829)
(383,906)
10,171,063
(5,210,976)
155,164
(117,589)
281,244
Cash flows from operating activities:
Net income
Adjustments:
Income tax expense (benefit)
Interest income
Interest expense
Dividend income
Additions of expenses not involving cash outflows:
Impairment losses on credit loss
Loss on available-for-sale financial assets
Loss on valuation of investments in subsidiaries and associates
Loss on foreign exchange translation
Loss on transaction / valuation of derivative instruments (hedging)
Loss on hedged items (fair value hedge)
Provisions
Retirement benefits
Depreciation and amortization of premises and equipment, intangible assets and
investment properties
Loss on disposal of investments in joint ventures and associates
Loss on disposal of premises and equipment and other assets
Impairment loss on premises and equipment and other assets
Impairment loss on assets held for sale
Impairment loss on disposal group held-for-sale and disposal group held
for distribution to owners
Loss on disposal of disposal group held for sale
Deduction of revenues not involving cash inflows:
Gain on valuation of financial instruments at fair value through profit or loss
Gain on valuation of investments in subsidiaries and associates
Gain on foreign exchange translation
Gain on transaction / valuation of derivative instruments (hedging)
Gain on hedged items (fair value hedge)
Reversal of provisions
Gain on disposal of investments in joint ventures and associates
Gain on disposal of premises and equipment and other assets
Reversal of impairment loss on premises and equipment and other assets
Gain on disposal of group held for sale
Gain on disposal of assets held for sale
Reversal of impairment loss on assets held for sale
Reversal of impairment loss on disposal group held for sale and
disposal group held for distribution to owners
Changes in operating assets and liabilities:
Financial instruments at fair value through profit or loss
Loans and receivables
Other assets
Deposits due to customers
Provision
Net defined benefit liability
Other financial liabilities
Other liabilities
Cash received from (paid for) operating activities:
Interest income received
Interest expense paid
Dividends received
Income tax paid
Net cash provided by (used in) operating activities
(Continued)
Woori Bank
Annual Report 2015
102
F i n a n c i a l r e v i e w
Woori Bank and Subsidiaries Consolidated
Statements of Cash Flows
WOORI BANK AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
For the Years ended deCeMBer 31, 2015 and 2014 (ContInUed)
FOR THE YEARS ENDED DECEMBER 31, 2015 AND 2014 (CONTINUED)
Cash flows from investing activities:
Cash in-flows from investing activities:
Net cash provided by disposal of assets held-for-sale (Note 47)
Net cash provided by the merger of Saudara Bank (Note 51)
Disposal of available-for-sale financial assets
Redemption of held-to-maturity financial assets
Disposal of investments in joint ventures and associates
Disposal of premises and equipment
Disposal of intangible assets
Disposal of assets held-for-sale
Cash in-flow related to derivatives for risk hedge
Cash out-flows from investing activities:
Acquisition of Saudara Bank
Acquisition of available-for-sale financial assets
Acquisition of held-to-maturity financial assets
Acquisition of investments in joint ventures and associates
Acquisition of investment properties
Acquisition of premises and equipment
Acquisition of intangible assets
Cash out-flow related to derivatives for risk hedge
Net cash provided by (used in) investing activities
Cash flows from financing activities:
Cash in-flows from financing activities:
Increase in borrowings
Issuance of debentures
Issuance of hybrid securities
Paid in capital stock of subsidiaries
Change in ownership interest of subsidiaries
Cash out-flows from financing activities:
Changes due to distribution to owners
Decrease in borrowings
Repayment of debentures
Payment of dividends
Acquisition of treasury stock
Expenses on stock issued
Dividends paid on hybrid securities
Dividends paid on non-controlling interests
Dividends paid on hybrid securities of subsidiaries
Redemption of non-controlling hybrid securities
Other decrease in non-controlling interests, net
Net cash provided by (used in) financing activities
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents, beginning of the period (Note 6)
Effects of exchange rate changes on cash and cash equivalents
Cash and cash equivalents, end of the period (Note 6)
2015
2014
(Korean Won in millions)
-
-
18,426,846
6,404,711
75,599
18,600
1,782
3,711
56,956
24,988,205
38,535
16,305,767
7,138,013
1,098
-
129,454
97,891
3,273
23,714,061
1,274,144
12,674,649
13,502,777
795,179
-
3,787
26,976,392
-
10,346,919
16,425,353
504,952
-
-
179,758
824
-
-
-
27,457,806
(481,414)
408,824
5,962,861
272,370
6,644,055
1,193,584
81,100
26,865,684
4,823,630
235,778
36,364
88,197
29,857
-
33,354,194
-
28,527,400
5,658,655
67,431
18
140,639
86,910
14,153
34,495,206
(1,141,012)
17,084,134
18,229,052
159,618
1,121
-
35,473,925
792,949
18,011,845
15,448,663
-
37,580
3
60,780
8,042
98,522
702,995
1,119
35,162,498
311,427
(548,341)
6,472,459
38,743
5,962,861
See accompanying notes to consolidated financial statements
Woori Bank
Annual Report 2015
103
F i n a n c i a l r e v i e w
Woori Bank and Subsidiaries Notes to
Consolidated Financial Statements
WOORI BANK AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEARS ENDED DECEMBER 31, 2015 AND 2014
For the Years ended deCeMBer 31, 2015 and 2014
1. GENERAL
(1) Summary of the parent company
Woori Bank (hereinafter referred to the ―Bank‖), which is a controlling entity in accordance with Korean
International Financial Reporting Standards (―K-IFRS‖) 1110 – Consolidated Financial Statements, 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 currencies exchange business with
approval from the Bank of Korea (―BOK‖) and the Ministry of Finance and Economy (―MOFE‖).
Previously, Woori Finance Holdings Co., Ltd., the former holding company of Woori Financial Group,
established on March 27, 2001 held a 100% ownership of the Bank. Effective November 1, 2014, Woori Finance
Holdings Co., Ltd. completed its merger with and into Woori Bank, its wholly-owned subsidiary, as
contemplated by the merger agreement dated July 28, 2014, by and between Woori Finance Holdings Co., Ltd.
and Woori Bank. Accordingly, the shares of the Bank, 597 million shares, prior to the merger, were reduced to
nil in accordance with capital reduction procedure, and then, in accordance with the merger ratio, the Bank
newly issued 676 million shares. As a result, as of December 31, 2015, the common stock of the Bank amounts,
expressed in Korean Won (the ―KRW‖ or ―Won‖), to 3,381,392 million Won.
As of December 31, 2015 and 2014, Korea Deposit Insurance Corporation (―KDIC‖), as the largest shareholder,
held 345 million shares (51.06% ownership) and 345 million shares (51.04% ownership), respectively, of the
Bank‘s shares issued.
On June 24, 2002, Woori Finance Holdings Co., Ltd. listed its common shares on the Korea Exchange through
public offering. In addition, on September 29, 2003, the holding company registered with the Securities and
Exchange Commission in the United States of America and, on the same day, listed its American Depositary
Shares on the New York Stock Exchange.
As a result of such merger, the Bank incorporated Woori Card Co., Ltd., Woori Investment Bank Co., Ltd.,
Woori FIS Co., Ltd., Woori Private Equity Co., Ltd., and Woori Finance Research Institute Co., Ltd. as its
subsidiaries.
The head office of the Bank is located in 51 Sogong-ro, Jung Gu, Seoul, Korea. The Bank has 956 branches and
offices in Korea, and 21 branches and offices overseas as of December 31, 2015.
(2) The consolidated financial statements for Woori Bank and its subsidiaries (the ―Group‖) include the
following subsidiaries:
Subsidiaries
Main business
Woori Bank:
Woori FIS Co., Ltd.
System software development
& maintenance
Woori Private Equity Co., Ltd.
Woori Finance Research Institute
Finance
Co., Ltd.
Woori Card Co., Ltd.
Woori Investment Bank Co., Ltd.
(*6)
Woori Credit Information Co., Ltd.
Other service business
Finance
Other credit finance business
Credit information
Percentage of ownership
(%)
December
31, 2015
December
31, 2014
Financial
statements
as of
Location
100.0
100.0
100.0
100.0
58.2
100.0
100.0
100.0
Korea
Korea
December, 31
December, 31
100.0
100.0
Korea
Korea
December, 31
December, 31
59.5
100.0
Korea
Korea
December, 31
December, 31
Woori Bank
Annual Report 2015
104
F i n a n c i a l r e v i e w
Subsidiaries
Woori America Bank
Woori Global Markets Asia Limited
Woori Bank (China) Limited
ZAO Woori Bank
PT Bank Woori Saudara Indonesia 1906
Tbk
Woori Brazil Bank
Korea BTL Infrastructure Fund
Woori Fund Service Co., Ltd.
Woori Finance Cambodia
Woori Finance Myanmar (*7)
Kumho Trust First Co., Ltd. (*1)
Asiana Saigon Inc. (*1)
An-Dong Raja First Co., Ltd. (*1)
Consus Eighth Co., LLC (*1)
KAMCO Value Recreation First
Securitization Specialty Co., Ltd. (*1)
Woori IB Global Bond Co., Ltd. (*3)
Hermes STX Co., Ltd. (*1)
BWL First Co., LLC (*1)
Woori Poongsan Co., Ltd. (*1)
Pyeongtaek Ocean Sand Inc. (*3)
Deogi Dream Fourth Co., Ltd. (*1)
Jeonju Iwon Ltd. (*1)
Wonju I one Inc. (*1)
Newyear Eighth Co., Ltd. (*3)
Jilrian First Co., Ltd. (*3)
Heitz Third Co., Ltd. (*1)
Woorihansoop 1st Co., Ltd. (*1)
Electric Cable First Co., Ltd (*1)
Woori International First Co., Ltd. (*1)
Uri HJ First Co., Ltd. (*1)
Haeoreum Short-term Bond 15th and 34
beneficiary certificates for the rest
(*4)
Principle Guaranteed Trust (*2)
Principle and Interest Guaranteed Trust
(*2)
Woori Bank and Woori Private Equity
Co., Ltd.:
Woori Private Equity Fund (*5)
Woori Private Equity Fund:
Woori EL Co., Ltd.
Woori Investment Bank:
Dongwoo First Securitization Specialty
Co., Ltd. (*1)
My Asset Manhattan Private REIT First
(*3)
Main business
Finance
〃
〃
〃
〃
〃
〃
〃
〃
〃
Asset securitization
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
Securities investment and
others
Trust
〃
Other financial business
Other financial business
Asset securitization
Securities investment
Percentage of ownership
December
31, 2015
100.0
100.0
100.0
100.0
(%)
December
31, 2014
100.0
100.0
100.0
100.0
Financial
statements as of
Location
U.S.A
December, 31
Hong Kong December, 31
China
December, 31
Russia
December, 31
74.0
100.0
99.9
100.0
100.0
100.0
0.0
0.0
0.0
0.0
15.0
-
0.0
0.0
0.0
-
0.0
0.0
0.0
-
-
0.0
0.0
0.0
0.0
0.0
-
0.0
0.0
31.9
100.0
5.0
-
74.0
100.0
99.9
100.0
100.0
-
0.0
0.0
0.0
0.0
Indonesia December, 31
Brazil
December, 31
Korea
December, 31
Korea
December, 31
Cambodia December, 31
December, 31
Myanmar
Korea
December, 31
Korea
December, 31
Korea
December, 31
Korea
December, 31
15.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
-
-
-
-
Korea
Korea
Korea
Korea
Korea
Korea
Korea
Korea
Korea
Korea
Korea
Korea
Korea
Korea
Korea
Korea
December, 31
-
December, 31
December, 31
December, 31
-
December, 31
December, 31
December, 31
-
-
December, 31
December, 31
December, 31
December, 31
December, 31
-
0.0
-
Korea
December, 31
December, 31
0.0
Korea
December, 31
31.9
Korea
December, 31
100.0
Korea
December, 31
-
Korea
December, 31
76.6
Korea
-
(*1) The entity is a structured entity for the purpose of asset securitization and included in the consolidation scope.
Though the Group is not a majority shareholder, the Group 1) has the power over the investee, 2) is exposed, or has
rights, to variable returns from its involvement with the investee, and 3) has the ability to use its power to affect its
returns.
(*2) The entity is a money trust under the Financial Investment Services and Capital Markets Act and included in the
consolidation scope. Though the Group is not a majority shareholder, the Group 1) has the power over the investee,
2) is exposed, or has rights, to variable returns from its involvement with the investee, and 3) has the ability to use
its power to affect its returns.
(*3) The entity is deconsolidated as the liquidation or disposal procedure was completed for the year ended December
31, 2015.
(*4) The entity is a structured entity for the purpose of investment in securities and included in the consolidation scope,
considering the Group 1) has the power over the investee, 2) is exposed, or has rights, to variable returns from its
involvement with the investee, and 3) has the ability to use its power to affect its returns.
(*5) The entity is included in the consolidation scope, for the Group, as a general partner, has controlling power.
- 2 -
Woori Bank
Annual Report 2015
105
F i n a n c i a l r e v i e w
(*6) The ownership interest as of December 31, 2015 decreased as Woori Private Equity Fund sold its ownership of
Woori Investment Bank for the year ended December 31, 2015.
(*7) For the year ended December 31, 2015, as the Group invested majority of the capital stock of the company, the
entity was included in the subsidiary.
(3) As of December 31, 2015, and 2014, despite having more than a 50% ownership interest, the Group has not
consolidated the following companies as the Group does not have the ability to control following
subsidiaries:
As of December 31, 2015
Subsidiaries
Location
Golden Bridge NHN Online Private Equity Investment (*)
Korea
Heungkuk High Class Private Equity Securities Investment Trust 377th (*) Korea
Korea
Mirae Asset Maps Clean Water Private Equity Investment Trust 7th (*)
Korea
Kiwoom Yonsei Private Equity Investment Trust (*)
Main
business
Securities Investment
Securities Investment
Securities Investment
Securities Investment
Percentage of
ownership (%)
60.0
51.3
59.7
88.9
Location
Korea
Golden Bridge NHN Online Private Equity Investment (*)
Heungkuk High Class Private Equity Securities Investment Trust 377th (*) Korea
Subsidiaries
Main
business
Securities Investment
Securities Investment
Percentage of
ownership (%)
60.0
51.3
As of December 31, 2014
(*) The Group owns the majority ownership interest in these structured entities, but has no power on the investees‘
relevant activities. As results, it is deemed that the Group has no power or control on the structured entities.
(4) The summarized financial information before the elimination of intercompany transactions of the
subsidiaries whose financial information were prepared under K-IFRS for the Group‘s consolidated
financial statements is as follows (Unit: Korean Won in millions):
As of and for the year ended December 31, 2015
Assets
Liabilities
Operating
revenue
Net income
(loss)
attributable to
owners
Comprehensive
income (loss)
attributable to
owners
161,778
89,365
127,701
45,491
260,657
3,669
1,421
1,224
3,605
6,604,059
328
5,295,225
4,149
1,379,873
86
116,858
1,206,156
33,957
1,701,191
245,246
4,016,968
261,026
1,057,992
6,691
1,509,304
126,401
3,511,268
225,194
1,770,900
106,239
1,417,952
80,653
739,502
9,818
22,767
2,252
279
815
16,607
29
129,404
31,271
67,932
6,851
408,566
17,301
375,747
19,850
34,042
6,247
2,705
9
10,435
1,806
12,893
1,763
1,056
7,232
24,023
2,330
30,307
358
579
(117)
(833)
1,024
62
119,976
7,830
1,830
24,356
8,958
32,855
(762)
10,691
(7,377)
30,307
358
946
(166)
1,477,657
1,449,024
56,397
125
125
545,534
961,065
22,728
(13,685)
(6,662)
3,071,375
562,477
126,904
26,906
41,080
Woori FIS
Woori Private Equity
Woori Finance Research
Institute
Woori Card
Woori Investment Bank Co.,
Ltd.
Woori Credit Information
Woori America Bank
Woori Global Markets Asia
Limited
Woori Bank (China) Limited
ZAO Woori Bank
PT Bank Woori Saudara
Indonesia 1906 Tbk
Woori Brazil Bank
Korea BTL Infrastructure
Fund
Woori Fund Service
Woori Finance Cambodia
Woori Finance Myanmar
Money trust under the Trust
Business Act
Structured entity for the
securitization of financial
assets
Security investments
structured entity
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As of and for the year ended December 31, 2014
Assets
Liabilities
246,580
80,292
211,671
37,442
Operating
revenue
289,485
4,387
3,682
5,732,039
467
4,543,180
6,619
1,203,131
1,001,542
33,500
1,338,415
274,132
3,844,399
254,716
861,209
6,049
1,170,884
164,246
3,397,735
218,122
1,735,356
164,282
1,390,103
131,319
669,818
9,070
11,930
262
426
6,716
84,282
32,412
49,945
6,319
205,273
12,982
85,851
18,468
35,136
4,895
1,790
Net income
(loss)
attributable to
owners
Comprehensive
income (loss)
attributable to
owners
(1,285)
2,087
91
89,107
4,536
2,198
5,587
759
8,887
4,418
14,563
1,647
31,750
(415)
266
(4,564)
2,144
94
105,438
8,642
2,082
12,641
5,345
26,980
(18,193)
17,589
(1,090)
31,750
(415)
615
603
1,452,201
1,423,694
64,736
603
434,845
882,984
34,734
(22,798)
(100,951)
3,789,630
800,013
69,543
22,465
45,040
Woori FIS
Woori Private Equity
Woori Finance Research
Institute
Woori Card
Woori Investment Bank Co.,
Ltd.
Woori Credit Information
Woori America Bank
Woori Global Markets Asia
Limited
Woori Bank (China) Limited
ZAO Woori Bank
PT Bank Woori Saudara
Indonesia 1906 Tbk
Woori Brazil Bank
Korea BTL Infrastructure
Fund
Woori Fund Service
Woori Finance Cambodia
Money trust under the Trust
Business Act
Structured entity for the
securitization of
financial assets
Security investments
structured entity
(5) The financial support that the Group provides to consolidated structured entities is as follows:
- Structured entity for securitization of financial assets
The structured entity is established for the purpose of securitization of project financing loans, corporate
bonds, and other financial assets. The Group is involved with the structured entity through providing
with credit facility over asset-backed commercial papers issued by the entity, originating loans directly
to the structured entity, or purchasing 100% of the subordinated debts issued by the structured entity.
- Structured entity for investment in securities
The structured entity is established for the purpose of investments in securities. The Group acquires
beneficiary certificates through its contribution of fund to the structured entity, and it is exposed to the
risk that it may not be able to recover its fund depending on the result of investment performance of
asset managers of the structured entity.
- Money Trust under the Trust Business Act
The Group provides with financial guarantee of principal and interest or principal only to some of its
trust products. Due to the financial guarantees, the Group may be obliged to supplement when the
principal and interest or principal of the trust product sold is short of the guaranteed amount depending
on the result of investment performance of the trust product.
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(6) The details of the limitations with regard to the transfer of assets or the redemption of liabilities within the
Group are provided below.
Some subsidiaries are regulated by the rules of certain jurisdictions, in which they were incorporated, with
regard to funding or management of deposits. Also, there is the limitation that they must have pre-approval
from their regulators in case of remittance of earnings to the Group.
(7) The Group has entered into various agreements with structured entities such as asset securitization vehicles,
structured finance and investment funds, and monetary funds. Where it is determined in accordance with K-
IFRS 1110 that the Group has no controlling power over such structured entities, the entities are not
consolidated. The nature of interests, which the Group retains, and the risks, to which the Group is exposed,
of the unconsolidated structured entities are as follows:
The interests to unconsolidated structured entities, which the Group retains, are classified to asset
securitization vehicles, structured finance and investment fund, based on the nature and the purpose of the
structured entities.
Asset securitization vehicle issues asset-backed securities and redeems the principal and interest or
distributes dividends on asset-backed securities with profits from collecting cash flows or sale of
securitized assets. The Group, as a secondary guarantor, provides purchase commitments for its asset-
backed securities or guarantees to such asset securitization vehicle and recognizes commission income or
interest incomes related to the commitment or guarantees. Therefore, the Group would be exposed to risks
to purchases or pays back asset-backed securities issued by the vehicles when a primary guarantor fails to
provide the financing asset securitization vehicles.
Structured finance includes investments in project financing on real estates, social overhead capital
(―SOC‖), infrastructure and shipping finance. They are formed as special purpose entity by funding through
equity investments and loans from various investors. Investment decisions are made by such investors
including the Group based on business outlook of such projects. In relation to such investments, the Group
recognizes interest incomes on loans, gains or losses on valuation of equity investments or dividend income.
The structured finance is secured by additional funding agreement, guarantee or credit facilities. However,
the structured financing project would fail to return the capital of equity investments or principal of loans to
the Group if it is discontinued or did not achieve business outcome.
Investment funds include trusts and private equity funds. A trust is formed by contributions from various
investors, operated by a manager engaged to the trust and distributed proceeds from sales of investments to
the investors. A private equity fund is established in order to acquire ownership interests in a portfolio
company with exit strategy after implementing financial and operational restructuring of the company. The
Group recognizes unrealized gains or losses on change in value of investments in proposition of ownership
interests in investments. The Group would be exposed to risks of loss when the value of portfolio
investment is decreased.
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Total assets of the unconsolidated structured entities, the carrying value of the related items recorded, the
maximum exposure to risks, and the loss recognized in conjunction with the unconsolidated structured
entities as of and for the year ended December 31, 2015 and 2014 are as follows (Unit: Korean Won in
millions):
Total asset of the unconsolidated structured entities
Assets recognized in the consolidated financial statements
related to the unconsolidated structured entities
Loans and receivables
Financial assets at fair value through profit or loss
Available-for-sale financial assets
Held-to-maturity financial assets
Investments in joint ventures and associates
Derivative assets
Liabilities recognized in the consolidated financial
statements related to the unconsolidated structured entities
Derivative liabilities
Other liabilities (including provisions)
The maximum exposure to risks
Investments
Purchase agreements
Credit facilities
Loss recognized on unconsolidated structured entities
Total asset of the unconsolidated structured entities
Assets recognized in the consolidated financial statements
related to the unconsolidated structured entities
Loans and receivables
Financial assets at fair value through profit or loss
Available-for-sale financial assets
Held-to-maturity financial assets
Investments in joint ventures and associates
Derivative assets
Liabilities recognized in the consolidated financial
statements related to the unconsolidated structured entities
Other liabilities (including provisions)
The maximum exposure to risks
Investments
Purchase agreements
Credit facilities
Other agreements
Loss recognized on unconsolidated structured entities
December 31, 2015
Asset
securitization
vehicle
10,138,371
Structured
finance
48,198,653
Investment
funds
7,611,232
4,219,809
148,811
-
1,649,949
2,420,870
-
179
3,688
126
3,562
5,250,850
4,219,809
74,000
957,041
2,205
2,879,310
2,439,207
274,175
133,455
-
-
32,473
728
-
728
3,877,161
2,879,310
48,000
949,851
47,942
963,747
26,976
-
654,705
-
282,066
-
-
-
-
963,747
963,747
-
-
-
December 31, 2014
Asset
securitization
vehicle
8,701,441
Structured
finance
39,770,040
Investment
Funds
7,174,629
613,105
185,946
190,303
-
236,807
-
49
70,638
70,638
2,295,445
613,105
340,560
1,341,780
-
-
2,484,397
2,293,115
-
153,606
-
-
37,676
564
564
3,016,797
2,484,395
-
470,590
61,812
6,661
926,993
-
-
586,035
-
340,958
-
-
-
926,993
926,993
-
-
-
36,961
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(8) Subsidiaries of which non-controlling interests are significant to the Group‘s consolidated financial
statements are as follows (Unit: Korean Won in millions):
1) Accumulated non-controlling interests at the end of the reporting period
Woori Investment Bank
PT Bank Woori Saudara Indonesia 1906 Tbk
64,013
58,880
60,121
56,828
December 31, 2015
December 31, 2014
.
2) Net income attributable to non-controlling interests
Woori Investment & Securities (*)
Woori Investment Bank
PT Bank Woori Saudara Indonesia 1906 Tbk
-
4,353
6,241
For the year ended
December 31, 2015
For the year ended
December 31, 2014
(125,724)
2,215
702
(*) The entity was deconsolidated due to the Group‘s disposal of the subsidiary during the year ended
December 31, 2014.
3) Dividends to non-controlling interests
Woori Investment & Securities (*)
PT Bank Woori Saudara Indonesia 1906 Tbk
-
778
For the year ended
December 31, 2015
For the year ended
December 31, 2014
8,029
-
(*) The entity was deconsolidated due to the Group‘s disposal of the subsidiary during the year ended
December 31, 2014.
4) Change of non-controlling interest due to merger
Indonesia Woori Bank, which was a subsidiary of the Group, merged with Saudara Bank for the year
ended December 31, 2014, and then changed its name into PT Bank Woori Saudara Indonesia 1906 Tbk.
Due to the merger, the Group‘s ownership interest of the company decreased from 95.2% to 74.0%. At
the same time, the non-controlling interests increased by 49,134 million Won, and the increase resulted
in as the decrease of equity attributable to the owner of the Group (Note 51).
2. SIGNIFICANT BASIS OF PREPARATION AND ACCOUNTING POLICIES
(1) Basis of presentation
The Group‘s consolidated financial statements are prepared in accordance with K-IFRS.
The significant accounting policies that have been applied for the preparation of the consolidated financial
statements for the year ended on December 31, 2015 are described below, and the significant accounting policies
are the same as the accounting policies applied for the preparation of the previous year‘s consolidated financial
statements, except the impacts from the adoptions of accounting standards or interpretations which are explained
below.
The Group‘s consolidated financial statements have been prepared based on the historical cost method except for
specific non-current assets and certain financial assets or liabilities reported at fair value. The historical cost is
generally measured by fair value of acquired assets.
The consolidated financial statements of the Group were approved by the board of directors on March 4, 2016.
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1) The Group has newly adopted the following amendment to K-IFRS that affected the Group‘s accounting
policies.
Amendments to K-IFRS 1019 – Employee Benefits
If the amount of the contributions is independent from the numbers of years of service, the Group is
permitted to recognize such contributions as a reduction in the service cost in the period in which the related
service is rendered. The adoption of the amendments has no significant impact on the consolidated financial
statements.
Other than the amendment stated above, there are several annual improvements in the current period, but the
application of the amendments has had no material effect on the Group‘s consolidated financial statements.
2) The Group has not applied the following K-IFRSs that have been issued but are not yet effective:
Amendments to K-IFRS 1001 – Presentation of Financial Statements
The amendments to K-IFRS 1001 clarify the concept of applying materiality in practice and restrict an entity
reducing the understandability of its financial statements by obscuring material information with immaterial
information or by aggregating material items that have different natures or functions. The amendments to K-
IFRS 1001 are effective for annual periods beginning on or after January 1, 2016.
Amendments to K-IFRS 1016 – Property, Plant and Equipment
The amendments to K-IFRS 1016 prohibit the Group from using a revenue-based depreciation method for
items of property, plant and equipment. The amendments are effective for the annual periods beginning on or
after January 1, 2016.
Amendments to K-IFRS 1038 – Intangible Assets
The amendments to K-IFRS 1038 rebuts presumption that revenue is not an appropriate basis for the
amortization of an intangible assets, which the presumption can only be rebutted when the intangible asset
expressed as a measure of revenue or when it can be demonstrated that revenue and consumption of the
economic benefits of the intangible asset are highly correlated. The amendments are effective for the annual
periods beginning on or after January 1, 2016.
Amendments to K-IFRS 1110 – Consolidated Financial Statements & K-IFRS 1112 – Disclosure of Interests
in Other Entities & K-IFRS 1028 – Investment in associates
The amendments clarify that in applying the equity method of accounting to an associate or a joint venture
that is an investment entity, an investor may retain the fair value measurements that the associate or joint
venture used for its subsidiaries. The amendments are effective for annual periods beginning on or after 1
January 2016
Amendments to K-IFRS 1111 – Accounting for Acquisitions of Interests in Joint Operations
The amendments to K-IFRS 1111 provides guidance on how to account for the acquisition of joint operation
that constitutes a business as defined in K-IFRS 1103– Business Combinations. A joint operator is also
required to disclose the relevant information required by K-IFRS 1103 and other standards for business
combinations. The amendments are effective for the annual periods beginning on or after January 1, 2016.
Enactment to K-IFRS 1109 – Financial Instruments
The amendments to K-IFRS 1109 contain the requirements for the classification and measurement of
financial assets and financial liabilities based on a business model whose objective is achieved both by
collecting contractual cash flows and selling financial assets and based on the contractual terms that give rise
on specified dates to cash flows, impairment methodology based on the expected credit losses, and broadened
types of instruments that qualify as hedging instruments and the types of risk components of non-financial
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items that are eligible for hedge accounting and the change of the hedge effectiveness test. The amendments
are effective for annual periods beginning on or after 1 January 2018.
Enactment to K-IFRS 1115 – Revenue from Contracts with Customers
The core principle under K-IFRS 1115 is that an entity should recognize revenue to depict the transfer of
promised goods or services to customers in an amount that reflects the consideration to which the entity
expects to be entitled in exchange for those goods or services. The amendments introduces a 5-step approach
to revenue recognition and measurement: 1) Identify the contract with a customer, 2) Identify the
performance obligations in the contract, 3) Determine the transaction price, 4) Allocate the transaction price
to the performance obligations in the contract, 5) Recognize revenue when (or as) the entity satisfies a
performance obligation. This standard will supersede K-IFRS 1011 Construction Contracts, K-IFRS 1018
Revenue, K-IFRS 2113 Customer Loyalty Programmers, K-IFRS 2115 Agreements for the Construction of
Real Estate, K-IFRS 2118 Transfers of Assets from Customers, and K-IFRS 2031 Revenue-Barter
Transactions Involving Advertising Services. The amendments are effective for annual periods beginning on
or after 1 January 2018.
The Group is reviewing the impact from the amendments and the enactments listed above on the Group‘s
consolidated financial statements.
(2) Basis of consolidated financial statement presentation
The consolidated financial statements incorporate the financial statements of the Bank and the entities (including
structured entities) controlled by the Bank (and its subsidiaries, that is the Group). Control is achieved where the
Group 1) has the power over the investee, 2) is exposed, or has rights, to variable returns from its involvement
with the investee, and 3) has the ability to use its power to affect its returns. The Group reassesses whether or not
it controls an investee if facts and circumstances indicate that there are changes to one or more of the three
elements of control listed above.
When the Group has less than a majority of the voting rights of an investee, it has power over the investee when
the voting rights are sufficient to give it the practical ability to direct the relevant activities of the investee
unilaterally. The Group considers all relevant facts and circumstances in assessing whether or not the Bank's
voting rights in an investee are sufficient to give it power, including:
• The relative size of the Group's holding of voting rights and dispersion of holdings of the other vote
holders;
• Potential voting rights held by the Group, other vote holders or other parties;
• Rights arising from other contractual arrangements;
• Any additional facts and circumstances that indicate that the Group has, or does not have, the current
ability to direct the relevant activities at the time that decisions need to be made, including voting patterns
at previous shareholders' meetings.
Income and expenses of subsidiaries acquired or disposed of during the year are included in the consolidated
statement of comprehensive income from the date the Group gains control until the date when the Group ceases
to control the subsidiary. Profit or loss and each component of other comprehensive income are attributed to the
owner of the Group and to the non-controlling interests. Total comprehensive income of subsidiaries is attributed
to the owner of the Group and to the non-controlling interests even if this results in the non-controlling interests
having a deficit balance.
Where necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting
policies into line with the Group‘s accounting policies.
All intra-group transactions and, related assets and liabilities, income and expenses are eliminated in full on
consolidation.
Changes in the Group‘s ownership interests in subsidiaries that do not result in the Group losing control over the
subsidiaries are accounted for as equity transactions. The carrying amounts of the Group‘s interests and the non-
controlling interests are adjusted to reflect the changes in their relative interests in the subsidiaries. Any
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difference between the amount by which the non-controlling interests are adjusted and the fair value of the
consideration paid or received is recognized directly in equity and attributed to the owner of the Group.
When the Group loses control of a subsidiary, a gain or loss on disposal is calculated as the difference between (i)
the aggregate of the fair value of the consideration received and the fair value of any retained interest and (ii) the
previous carrying amount of the assets (including goodwill), and liabilities of the subsidiary and any non-
controlling interests. When assets of the subsidiary are carried at revalued amounts or fair values and the related
cumulative gain or loss has been recognized in other comprehensive income and accumulated in equity, the
amounts previously recognized in other comprehensive income and accumulated in equity are accounted for as if
the Group had directly disposed of the relevant assets (i.e. reclassified to profit or loss or transferred directly to
retained earnings). The fair value of any investment retained in the former subsidiary at the date when control is
lost is recognized as the fair value on initial recognition for subsequent accounting under K-IFRS 1039 Financial
Instruments: Recognition and Measurement or, when applicable, the cost on initial recognition of an investment
in an associate or a joint venture.
(3) Business Combinations
Acquisitions of subsidiaries and businesses are accounted for using the acquisition method. The consideration
transferred in a business combination is measured at fair value, which is calculated as the sum of the acquisition-
date fair values of the assets transferred by the Group, liabilities assumed by the Group to the former owners of
the acquiree and the equity interests issued by the Group in exchange for control of the acquiree. Acquisition-
related costs are generally recognized in net income as incurred.
At the acquisition date, the acquiree‘s identifiable assets, liabilities and contingent liabilities that meet the
condition for recognition under K-IFRS 1103 are recognized at their fair value, except that:
• deferred tax assets or liabilities and assets or liabilities related to employee benefit arrangements are
recognized and measured in accordance with K-IFRS 1012 Income Taxes and K-IFRS 1019 Employee
Benefits, respectively;
• liabilities or equity instruments related to share-based payment arrangements of the acquiree or share-
based payment arrangements of the Group entered into to replace share-based payment arrangements of
the acquiree are measured in accordance with K-IFRS 1102 Share-based Payment at the acquisition date;
and
• non-current assets (or disposal groups) that are classified as held for sale in accordance with K-IFRS 1105
Non-current Assets Held for Sale and Discontinued Operations are measured at the lower of their
previous carrying amounts and fair value less costs to sell.
Any excess of the sum of the consideration transferred, the amount of any non-controlling interest in the
acquiree and the fair value of the Group‘s previously held equity interest (if any) in the acquiree over the net of
identifiable assets and liabilities assumed of the acquiree at the acquisition date is recognized as goodwill which
is included in intangible assets.
If, after reassessment, the Group‘s interest in the fair value of the acquiree‘s identifiable net assets exceeds the
sum of the consideration transferred, the amount of any non-controlling interest in the acquiree and the fair value
of the acquirer‘s previously held equity interest in the acquiree (if any), the excess is recognized immediately in
net income as a bargain purchase gain.
Non-controlling interests that are present ownership interests and entitle their holders to a proportionate share of
the entity's net assets in the event of liquidation may be initially measured either at fair value or at the non-
controlling interests' proportionate share of the recognized amounts of the acquiree's identifiable net assets. The
choice of measurement basis is made on a transaction-by-transaction basis. Other types of non-controlling
interests are measured at fair value or, when applicable, on the basis specified in another K-IFRS.
When the consideration transferred by the Group in a business combination includes assets or liabilities resulting
from a contingent consideration arrangement, the contingent consideration is measured at its acquisition-date fair
value and included as part of the consideration transferred in a business combination. Changes in the fair value
of the contingent consideration that qualify as measurement period adjustments are adjusted retrospectively, with
corresponding adjustments against goodwill. Measurement period adjustments are adjustments that arise from
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additional information obtained during the ‗measurement period‘ (which cannot exceed one year from the
acquisition date) about facts and circumstances that existed at the acquisition date.
The subsequent accounting for changes in the fair value of the contingent consideration that do not qualify as
measurement period adjustments depends on how the contingent consideration is classified. Contingent
consideration that is classified as equity is not remeasured at subsequent reporting dates and its subsequent
settlement is accounted for within equity. Contingent consideration that is classified as an asset or a liability is
remeasured at subsequent reporting dates in accordance with K-IFRS 1039 Financial Instruments: Recognition
and Measurement, or K-IFRS 1037 Provisions, Contingent Liabilities and Contingent Assets, as appropriate,
with the corresponding gain or loss being recognized in profit or loss.
When a business combination is achieved in stages, the Group's previously held equity interest in the acquiree is
remeasured at fair value at the acquisition date (i.e. the date when the Group obtains control) and the resulting
gain or loss, if any, is recognized in net income. Amounts arising from changes in value of interests in the
acquiree prior to the acquisition date that have previously been recognized in other comprehensive income are
reclassified to net income where such treatment would be appropriate if that interest were disposed of.
In case where i) a common entity ultimately controls over all participating entities, or businesses, in business
combination transaction, prior to and after the transaction continuously, and ii) the control is not temporary, the
transaction meets the definition of ―business combination under common control‖ and it is deemed that the
transaction only results in the changes in legal substance, not economic substance, from the perspective of the
ultimate controlling party. Thus, in such transactions, the acquirer recognizes the assets and liabilities of the
acquiree on its financial statements at the book values as recognized in the ultimate controlling party‘s
consolidated financial statements, and the difference between the book value of consideration transferred to and
the book value of net assets transferred in is recognized as equity.
(4)
Investments in joint ventures and associates
An associate is an entity over which the Group has significant influence. Significant influence is the power to
participate in making decision on the financial and operating policy of the investee but is not control or joint
control over those policies.
A joint venture is a joint arrangement whereby the parties that have joint control of the arrangement have rights
to net assets relating to the arrangement. Joint control is the contractually agreed sharing of control of an
arrangement, which exists only when decisions about the relevant activities require the unanimous consent of the
parties sharing control.
The net income of current period and the financial results of the joint ventures and associates are incorporated in
these consolidated financial statements using the equity method of accounting, except when the investment is
classified as held for sale, in which case it is accounted for in accordance with K-IFRS 1105 Non-current Assets
Held for Sale and Discontinued Operations. Under the equity method, an investment in the joint ventures and
associates is initially recognized in the consolidated statements of financial position at cost and adjusted
thereafter to recognize the Group's share of the net assets of the joint ventures and associates and any impairment.
When the Group's share of losses of the joint ventures and associates exceeds the Group's interest in the associate,
the Group discontinues recognizing its share of further losses. Additional losses are recognized only to the extent
that the Group has incurred legal or constructive obligations or made payments on behalf of the joint ventures
and associates.
Any excess of the cost of acquisition over the Group's share of the net fair value of the identifiable assets,
liabilities and contingent liabilities of the joint ventures and associates recognized at the date of acquisition is
recognized as goodwill, which is included within the carrying amount of the investment. Any excess of the
Group‘s share of the net fair value of the identifiable assets, liabilities and contingent liabilities over the cost of
acquisition is recognized immediately in net income.
Upon a loss of significant influence over the joint ventures and associates, the Group discontinues the use of the
equity method and measures at fair value of any investment that the Group retains in the former joint ventures
and associates from the date when the Group loses significant influence. The fair value of the investment is
regarded as its fair value on initial recognition as a financial asset in accordance with K-IFRS 1039 Financial
Instruments; Recognition and Measurement. The Group recognized differences between the carrying amount and
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fair value in net income and it is included in determination of the gain or loss on disposal of joint ventures and
associates. The Group accounts for all amounts recognized in other comprehensive income in relation to that
joint ventures and associates on the same basis as would be required if the joint ventures and associates had
directly disposed of the related assets or liabilities. Therefore, if a gain or loss previously recognized in other
comprehensive income by an associate would be reclassified to net income on the disposal of the related assets
or liabilities, the Group reclassifies the gain or loss from equity to net income as a reclassification adjustment.
When the Group‘s ownership of interest in an associate or a joint venture decreases but the Group continues to
maintain significant influence over an associate or a joint venture, the Group reclassifies to profit or loss the
proportion of the gain or loss that had previously been recognized in other comprehensive income relating to that
decrease in ownership interest if the gain or loss would be reclassified to profit or loss on the disposal of the
related assets or liabilities. Meanwhile, if interest on associate or joint venture meets the definition of non-
current asset held for sale, it is accounted for in accordance with K-IFRS 1105.
The requirements of K-IFRS 1039 Financial Instruments: Recognition and Measurement to determine whether
there has been a loss event are applied to identify whether it is necessary to recognize any impairment loss with
respect to the Group‘s investment in the joint ventures and associates. When necessary, the entire carrying
amount of the investment (including goodwill) is tested for impairment in accordance with K-IFRS 1036
Impairment of Assets as a single asset by comparing its recoverable amount (higher of value in use and fair value
less costs to sell) with its carrying amount. Any impairment loss recognized is not allocated to any asset
(including goodwill), which forms part of the carrying amount of the investment. Any reversal of that
impairment loss is recognized in accordance with K-IFRS 1036 to the extent that the recoverable amount of the
investment subsequently increases.
The Group continues to use the equity method when an investment in an associate becomes an investment in a
joint venture or an investment in a joint venture becomes an investment in an associate. There is no
remeasurement to fair value upon such changes in ownership interests.
When a subsidiary transacts with an associate or a joint venture of the Group, profits and losses resulting from
the transactions with the associate or joint venture are recognized in the Group's consolidated financial
statements only to the extent of interests in the associate or joint venture that are not related to the Group.
(5)
Investment in joint operation
A joint operation is a joint arrangement whereby the parties that have joint control of the arrangement have
rights to the assets, and obligations for the liabilities, relating to the arrangement. Joint control is the
contractually agreed sharing of control of an arrangement, which exists only when decisions about the relevant
activities require the unanimous consent of the parties sharing control.
When the Group operates as a joint operator, it recognizes in relation to its interest in a joint operation:
(a) its assets, including its share of any assets held jointly;
(b) its liabilities, including its share of any liabilities incurred jointly;
(c) its revenue from the sale of its share of the output arising from the joint operation;
(d) its share of the revenue from the sale of the output by the joint operation; and
(e) its expenses, including its share of any expenses incurred jointly.
The Group accounts for the assets, liabilities, revenues and expenses relating to its interest in a joint operation in
accordance with the IFRSs applicable to the particular assets, liabilities, revenues and expenses.
When the Group enters into a transaction with a joint operation in which it is a joint operator, such as a sale or
contribution of assets, it is conducting the transaction with the other parties to the joint operation and, as such,
the Group recognizes gains and losses resulting from such a transaction only to the extent of the other parties‘
interests in the joint operation.
When the Group enters into a transaction with a joint operation in which it is a joint operator, such as a purchase
of assets, it does not recognize its share of the gains and losses until it resells those assets to a third party.
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(6) Revenue recognition
1) Interest income
Interest income is recognized when earned. Interest income on financial assets that are classified as loans
and receivables, available-for-sale or held-to-maturity is determined using the effective interest method.
The effective interest method is a method of calculating the amortized cost of a financial asset (or group of
financial assets) and of allocating the interest income over the expected life of the asset. The effective
interest rate is the rate that exactly discounts estimated future cash flows to the instrument's initial carrying
amount. Calculation of the effective interest rate takes into account fees payable or receivable that is an
integral part of the instrument's yield, premiums or discounts on acquisition or issue, early redemption fees
and transaction costs. All contractual terms of a financial instrument are considered when estimating future
cash flows.
2) Loan origination fees and costs
The commission fees earned on loans, which is part of the effective interest rate of loans, is accounted for
deferred origination fees. Incremental cost related to the acquisition or disposal is accounted for deferred
origination costs, and it is amortized on the effective interest method and included in interest revenues on
loans.
3) Fees and commissions income
Commitment and utilization fees are determined as a percentage of the outstanding facility. If it is unlikely
that a specific lending arrangement will be entered into, such fees are taken to net income over the life of
the facility otherwise they are deferred and included in the effective interest rate on the advance.
Fees in respect of services are recognized as the right to consideration accrues through the provision of the
service to the customer. The arrangements are generally contractual and the cost of providing the service is
incurred as the service is rendered. The price is usually fixed and determinable.
Credit card fees include commission received from merchants for processing credit card transaction and
annual fees received from credit card holders. Revenue from the commission is accrued to net income when
the service performed and annual fee is deferred and recognized as income over the period of the service
provided.
4) Trust fees and compensation related to trust accounts
The Group receives fees for its management of unconsolidated trust assets, which are recognized on an
accrual basis when the management services are provided and earned. The Group also is entitled to receive
performance-based fees for certain trust accounts. These performance-based fees are recognized at the end
of the performance period. In addition, a certain trust account which the Group guarantees to repay the
principals and minimum interests of the trust account to its beneficiaries shall be included in the
consolidated financial statements. The Group recognizes incomes when earned and expenses when interests
to be paid to beneficiaries are accrued.
(7) Accounting for foreign currencies
The Group‘s consolidated financial statements are presented in Korean Won, which is the functional currency of
the Group. At the end of each reporting period, monetary assets and liabilities denominated in foreign currencies
are translated to the functional currency at its prevailing exchange rates at the date. Foreign exchange differences
on monetary items that qualify as hedging instruments in a cash flow hedge or that form part of net investment in
foreign operations are recognized in equity.
A monetary available-for-sale (―AFS‖) financial asset is treated as if it were carried at amortized cost in the
foreign currency. Accordingly, for such financial assets, exchange differences resulting from retranslating
amortized cost are recognized in net income.
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Non-monetary items denominated in foreign currencies that are stated at fair value are translated into Korean
Won at foreign exchange rates at the dates the values were determined. Translation differences arising on non-
monetary items measured at fair value are recognized in net income except for differences arising on non-
monetary AFS financial assets, for example equity shares, which are included in the AFS reserve in equity unless
the asset is the hedged item in a fair value hedge.
The Group identifies the most appropriate functional currency for each foreign operation based on the foreign
operation‘s activities. If Korean Won is not the foreign operation‘s functional currency, its assets and liabilities,
including goodwill and fair value adjustments arising on acquisition, are translated into Korean Won at foreign
exchange rates at the end of each reporting date while the revenues and expenses are translated into Korean Won
at average exchange rates for the period unless these do not approximate to the foreign exchange rates at the
dates of the transactions. Foreign exchange differences arising on the translation of a foreign operation are
recognized directly in equity and included in net income on its disposal.
(8) Cash and cash equivalents
Cash and cash equivalents consist of cash on hand, demand deposits, interest-earning deposits with original
maturities of up to 3 months of acquisition date and highly liquid investment assets that are readily convertible to
known amounts of cash and subject to an insignificant risk of changes in value.
(9) Financial assets and financial liabilities
1) Financial assets
A regular way purchase or sale of financial assets is recognized or derecognized on the trade or settlement
date. A regular way purchase or sale is a purchase or sale of a financial asset under a contract whose term
requires delivery of the asset within the time frame established generally by regulation or convention in the
marketplace concerned.
On initial recognition, financial assets are classified into Financial assets at fair value through profit or loss
(―FVTPL‖), AFS financial assets, held-to-maturity (―HTM‖) and loans and receivables.
a) Financial assets at FVTPL
A financial asset is classified as held for trading if:
it has been acquired principally for the purpose of selling it in the near term; or
on initial recognition it is part of a portfolio of identified financial instruments that the Group manages
together and has a recent actual pattern of short-term profit-taking; or
it is a derivative that is not designated and effective as a hedging instrument.
A financial asset other than a financial asset held for trading or contingent consideration that may be paid
by an acquirer as part of a business combination may be designated as at FVTPL upon initial recognition if:
such designation eliminates or significantly reduces a measurement or recognition inconsistency that
would otherwise arise; or
the financial asset forms part of a group of financial assets or financial liabilities or both, which is
managed and its performance is evaluated on a fair value basis, in accordance with the Group's
documented risk management or investment strategy, and information about the grouping is provided
internally on that basis; or
it forms part of a contract containing one or more embedded derivatives, and K-IFRS 1039 Financial
Instruments: Recognition and Measurement permits the entire combined contract (asset or liability) to
be designated as at FVTPL.
Financial assets designated by the Group on initial recognition as at FVTPL are recognized at fair value,
with transaction costs recognized in net income, and are subsequently measured at fair value. Gains and
losses on financial assets that are designated as at FVTPL are recognized in net income as they arise.
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b) AFS financial assets:
Financial assets that are not classified as HTM; financial assets at FVTPL; or loans and receivables, are
classified as AFS. Financial assets can be designated as AFS on initial recognition. AFS financial assets are
initially recognized at fair value plus directly related transaction costs. They are subsequently measured at
fair value. Unquoted equity investments whose fair value cannot be measured reliably are carried at cost
and classified as AFS financial assets. Impairment losses in monetary and non-monetary AFS financial
assets and dividends on non-monetary financial assets are recognized in net income. Interest revenue on
monetary financial assets is calculated using the effective interest method. Other changes in the fair value
of AFS financial assets and any related tax are reported in a separate component of shareholders' equity
until disposal, when the cumulative gain or loss is recognized in net income.
c) HTM investments:
A financial asset may be classified as a HTM investment only if it has fixed or determinable payments, a
fixed maturity, and the Group has the positive intention and ability to hold the financial asset to maturity.
HTM investments are initially recognized at fair value plus directly related transaction costs. They are
subsequently measured at amortized cost using the effective interest method less any impairment losses.
d) Loans and receivables:
Non-derivative financial assets with fixed or determinable repayments that are not quoted in an active
market are classified as loans and receivables, except those that are classified as AFS or as held-for-trading,
or designated as at FVTPL. Loans and receivables are initially recognized at fair value plus directly related
transaction costs. They are subsequently measured at amortized cost using the effective interest method less
any impairment losses. Interest income is recognized using the effective interest method, except for the
short-term receivables to which the present value discount is not meaningful.
2) Financial liabilities
On initial recognition financial liabilities are classified financial liabilities at FVTPL (held for trading, and
financial liabilities designated as at FVTPL) and financial liabilities measured at amortized cost.
A financial liability is classified as held-for-trading if it is incurred principally for repurchase in the near
term, or forms part of a portfolio of financial instruments that are managed together and for which there is
evidence of short-term profit taking, or it is a derivative (not in a qualifying hedge relationship). Held-for-
trading financial liabilities are recognized at fair value with transaction costs being recognized in net
income. Subsequently, they are measured at fair value. Gains and losses are recognized in net income as
they arise.
A financial liability other than a financial liability held for trading may be designated as at FVTPL upon
initial recognition if:
such designation eliminates or significantly reduces a measurement or recognition inconsistency that
would otherwise arise; or
the financial liability forms part of a group of financial assets or financial liabilities or both, which is
managed and its performance is evaluated on a fair value basis, in accordance with the Group's
documented risk management or investment strategy, and information about the grouping is provided
internally on that basis; or
it forms part of a contract containing one or more embedded derivatives, and K-IFRS 1039 Financial
Instruments: Recognition and Measurement permits the entire combined contract (asset or liability) to
be designated as at FVTPL.
Financial liabilities that the Group designates on initial recognition as being at FVTPL are recognized at
fair value, with transaction costs being recognized in net income, and are subsequently measured at fair
value. Gains and losses on financial liabilities that are designated as at FVTPL are recognized in net income
as they arise.
All other financial liabilities, such as deposits due to customers, borrowings, and debentures, are measured
at amortized cost using the effective interest method.
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3) Reclassifications
Held-for-trading and AFS financial assets that meet the definition of loans and receivables (non-derivative
financial assets with fixed or determinable payments that are not quoted in an active market) may be
reclassified to loans and receivables if the Group has the intention and ability to hold the financial asset for
the foreseeable future or until maturity. The Group typically regards the foreseeable future as twelve
months from the date of reclassification. Reclassifications are made at fair value. This fair value becomes
the asset's new cost or amortized cost as appropriate. Gains and losses recognized up to the date of
reclassification are not reversed.
4) Derecognition of financial assets and liabilities
The Group derecognizes a financial asset when the contractual right to the cash flows from the asset is
expired, or when it transfers the financial asset and substantially all the risks and rewards of ownership of
the asset to another company. If the Group neither transfers nor retains substantially all the risks and
rewards of ownership and continues to control the transferred asset, the Group recognizes its retained
interest in the asset and an associated liability for amounts it may have to pay. If the Group retains
substantially all the risks and rewards of ownership of a transferred financial asset, the Group continues to
recognize the financial asset and also recognizes a collateralized borrowing for the proceeds received.
On derecognition of a financial asset in its entirety, the difference between the asset‘s carrying amount and
the sum of the consideration received and receivable and the cumulated gain or loss that had been
recognized in other comprehensive income and accumulated in equity is recognized in profit or loss.
On derecognition of a financial assets other than in its entirety (e.g. when the Group retains an option to
repurchase part of a transferred asset, or it retains a residual interest and such an retained interest indicates
that the transferor has neither transferred nor retained substantially all the risks and rewards of ownership
and has retained control of the transferred asset), the Group allocates the previous carrying amount of the
financial asset between the part it continues to recognize under continuing involvement, and the part it no
longer recognizes on the basis of the relative fair value of those parts on the date of the transfer. The
difference between the carrying amount allocated to the part that is no longer recognized and the sum of the
consideration received for the part that is no longer recognized and any cumulative gain or loss allocated to
it that had been recognized in other comprehensive income is recognized in profit or loss. A cumulative
gain or loss that had been recognized in other comprehensive income is allocated between the part that
continues to be recognized and the part that is no longer recognized on the basis of the relative fair value of
those parts.
The Group derecognizes the financial liability, when Group's obligations are discharged, canceled or
expired. The difference between paid cost and the carrying amount of financial liabilities is recorded in
profit or loss.
5) Fair value of financial assets and liabilities
Financial instruments classified as held-for-trading or designated as at FVTPL and financial assets
classified as AFS are recognized in the financial statements at fair value. All derivatives are measured at
fair value.
Fair value is the price that would be received to sell an asset or paid to transfer a liability in and orderly
transaction between market participants at the measurement date. Fair values are determined from quoted
prices in active markets for identical financial assets or financial liabilities where these are available. The
Group characterizes active markets as those in which transactions for the asset or liability take place with
sufficient frequency and volume to provide pricing information on an ongoing basis.
Where a financial instrument is not in active market characterized by low transaction volumes, price
quotations which vary substantially among market participants, or in which minimal information is released
publicly, fair values are established using valuation techniques rely on alternative market data or internally
developed models using significant inputs that are generally readily observable from objective sources.
Market data includes prices of financial instruments with similar maturities and characteristics, duration,
interest rate yield curves, and measures of volatility. The amount determined to be fair value may
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incorporate the management of the Group‘s own assumptions (including assumptions that the Group
believes market participants would use in valuing the financial instruments and assumptions relating to
appropriate risk adjustments for nonperformance and lack of marketability).
The valuation techniques used to estimate the fair value of the financial instruments include market
approach and income approach, each of which involves a significant degree of judgment. Under the market
approach, fair value is determined by reference to a recent transaction involving the financial instruments or
by reference to observable valuation measures for comparable companies or assets.
Under the income approach, fair value is determined by converting future amounts (e.g., cash flows or
earnings) to a single present amount (discounted) using current market expectations about the future
amounts. In determining value under this approach, the Group makes assumptions regarding, among other
things, revenues, operating income, depreciation and amortization, capital expenditures, income taxes,
working capital needs, and terminal value of the financial investments. These valuation techniques involve
a degree of estimation, the extent of which depends on the instrument‘s complexity and the availability of
market-based data.
The following are descriptions of valuation methodologies used by the Group to measure various financial
instruments at fair value.
a) Financial assets at FVTPL and AFS financial assets:
The fair value of the securities included in financial assets at FVTPL and AFS financial assets are
recognized in the consolidated statements of financial position based on quoted market prices, where
available. For debt securities traded in the OTC market, the Group generally determines fair value based on
prices obtained from independent pricing services. Specifically, with respect to independent pricing
services, the Group obtains three prices per instrument from reputable independent pricing services in
Korea, and generally uses the lowest of the prices obtained from such services without further adjustment.
For non-marketable equity securities, the Group obtains prices from the independent pricing services. The
Group validates prices received from such independent pricing services using a variety of means, including
verification of the qualification of the independent pricing services, corroboration of the pricing by
comparing the prices among the independent pricing services and by reference to other available market
data, and review of the pricing model and assumptions used by the independent pricing services by the
Group‘s personnel who are familiar with market-related conditions.
b) Derivative assets and liabilities:
Quoted market prices are used for the Group‘s exchange-traded derivatives, such as certain interest rate
futures and option contracts. All of the Group‘s derivatives are traded in OTC markets where quoted
market prices are not readily available are valued using internal valuation techniques. Valuation techniques
and inputs to internally developed models depend on the type of derivative and nature of the underlying
rate, price or index upon which the derivative‘s value is based. If the model inputs for certain derivatives
are not observable in a liquid market, significant judgments on the level of inputs used for valuation
techniques are required.
c) Valuation Adjustments:
By using derivatives, the Group is exposed to credit risk if counterparties to the derivative contracts do not
perform as expected. If counterparty fails to perform, counterparty credit risk is equal to the amount
reported as a derivative asset in the consolidated statements of financial position. The amounts reported as a
derivative asset are derivative contracts in a gain position. Few of the Group‘s derivatives are listed on an
exchange. The majority of derivative positions are valued using internally developed models that use as
their basis observable market inputs. Therefore, an adjustment is necessary to reflect the credit quality of
each counterparty to arrive at fair value. Counterparty credit risk adjustments are applied to derivative
assets, such as OTC derivative instruments, when the market inputs used in valuation models may not be
indicative of the creditworthiness of the counterparty. Adjustments are also made when valuing financial
liabilities to reflect the Group‘s own credit standing.
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The adjustment is based on probability of default of a counterparty and loss given default. The adjustment
also takes into account contractual factors designed to reduce the Group‘s credit exposure to each
counterparty. To the extent derivative assets (liabilities) are subject to master netting arrangements, the
exposure used to calculate the credit risk adjustment is net of derivatives in a loss (gain) position with the
same counterparty and cash collateral received (paid).
6) Impairment of the financial assets
The Group assesses at the end of each reporting date whether there is any objective evidence that a
financial asset or group of financial assets classified as AFS, HTM or loans and receivables is impaired. A
financial asset or portfolio of financial assets is impaired and an impairment loss incurred if there is
objective evidence of impairment as result of one or more events that occurred after the initial recognition
asset and that event (or events) has an impact on the estimated future cash flows of the financial asset.
a) Financial assets carried at amortized cost:
If there is objective evidence that an impairment loss on a financial asset or group of financial assets
classified as HTM investments or as loans and receivables has been incurred, the Group measures the
amount of the loss as the difference between the carrying amount of the asset or group of assets and the
present value of estimated future cash flows from the asset or group of assets discounted at the effective
interest rate of the instrument at initial recognition. For collateralized loans and receivables, estimated
future cash flows include cash flows that may result from foreclosure less the costs of obtaining and selling
the collateral.
Impairment losses are assessed individually for financial assets that are individually significant and
assessed either individually or collectively for assets that are not individually significant. In making
collective assessment of impairment, financial assets are grouped into portfolios on the basis of similar risk
characteristics. Future cash flows from these portfolios are estimated on the basis of the contractual cash
flows and historical loss experience for assets with similar credit risk characteristics. Historical loss
experience is adjusted, on the basis of observable data, to reflect current conditions not affecting the period
of historical experience.
Impairment losses are recognized in net income and the carrying amount of the financial asset or group of
financial assets reduced by establishing a provision for impairment losses. If, in a subsequent period, the
amount of the impairment loss reduces and the reduction can be ascribed to an event after the impairment
was recognized, the previously recognized loss is reversed by adjusting the provision. Once an impairment
loss has been recognized on a financial asset or group of financial assets, interest income is recognized on
the carrying amount using the rate of interest at which estimated future cash flows were discounted in
measuring impairment.
It is not the Group‘s usual practice to write-off the asset at the time an impairment loss is recognized.
Impaired loans and receivables are written off (i.e. the impairment provision is applied in writing down the
loan's carrying value in full) when the Group concludes that there is no longer any realistic prospect of
recovery of part or the entire loan. Amounts recovered after a loan has been written off are reflected to the
provision for the period in which they are received.
b) Financial assets carried at fair value:
When a decline in the fair value of a financial asset classified as AFS has been recognized directly in other
comprehensive income and there is objective evidence that the asset is impaired, the cumulative loss is
removed from other comprehensive income and recognized in net income. The loss is measured as the
difference between the amortized cost of the financial asset and its current fair value. Impairment losses on
AFS equity instruments are not reversed through net income, but those on AFS debt instruments are
reversed, if there is a decrease in the cumulative impairment loss that is objectively related to a subsequent
event.
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(10) Offsetting financial instruments
Financial assets and liabilities are presented in net in the consolidated statements of financial position when the
Group has an enforceable legal right to set off and an intention to settle on a net basis or to realize an asset and
settle the liability simultaneously.
(11) Investment properties
The Group classifies a property held to earn rentals and/or for capital appreciation as an investment property.
Investment properties are measured initially at cost, including transaction costs, less subsequent depreciation and
impairment.
Subsequent costs are included in the carrying amount of the asset or recognized as a separate asset if it is
probable that future economic benefits associated with the assets will flow into the Group and the cost of an asset
can be measured reliably. Routine maintenance and repairs are expensed as incurred.
While land is not depreciated, all other investment properties are depreciated based on the respective assets‘
estimated useful lives using the straight-line method. The estimated useful lives, residual values and depreciation
method are reviewed at the end of each reporting period, with the effect of any change in estimate accounted for
on a prospective basis.
An investment property is derecognized from the consolidated financial statements on disposal or when it is
permanently withdrawn from use and no future economic benefits are expected even from its disposal. The gain
or loss on derecognition of an investment property is calculated as the difference between the net disposal
proceeds and the carrying amount of the property and is recognized in profit or loss in the period of the
derecognition.
(12) Premises and equipment
Premises and equipment are stated at cost less subsequent accumulated depreciation and accumulated
impairment losses. The cost of an item of premises and equipment is directly attributable to their purchase or
construction, which includes any costs directly attributable to bringing the asset to the location and condition
necessary for it to be capable of operating in the manner intended by management. It also includes the initial
estimate of the costs of dismantling and removing the item and restoring the site on which it is located.
Subsequent costs to replace part of the premises and equipment are recognized in carrying amount of an asset or
as an asset if it is probable that the future economic benefits associated with the assets will flow into the Group
and the cost of an asset can be measured reliably. Routine maintenance and repairs are expensed as incurred.
While land is not depreciated, for all other premises and equipment, depreciation is charged to net income on a
straight-line basis on the estimated economic useful lives as follows:
Buildings used for business purpose
Structures in leased office
Properties for business purpose
Leased assets
Useful life
35 to 57 years
4 to 5 years
4 to 5 years
Useful lives of the same kind or
similar other premises and equipment
The Group reassesses the depreciation method, the estimated useful lives and residual values of premises and
equipment at the end of each reporting period. If expectations differ from previous estimates, the changes are
accounted for as a change in an accounting estimate. When the carrying amount of a fixed asset exceeds the
estimated recoverable amount, the carrying amount of such asset is reduced to the recoverable amount.
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(13) Intangible assets and goodwill
Intangible assets are stated at the manufacturing cost or acquisition cost plus additional incidental expenses less
accumulated amortization and accumulated impairment losses. The Group‘s software and industrial property
right (trademark) are amortized over five years using the straight-line method. The estimated useful life and
amortization method are reviewed at the end of each reporting period. If expectations differ from previous
estimates, the changes are accounted for as a change in an accounting estimate.
Patents
Development costs
Software and others
Useful life
10 years
5 years
4 to 5 years
In addition, when an indicator that intangible assets are impaired is noted, and the carrying amount of the asset
exceeds the estimated recoverable amount of the asset, the carrying amount of the asset is reduced to its
recoverable amount immediately.
Goodwill acquired in a business combination is included in intangible assets. Goodwill is not amortized but
tested for impairment annually to the extent of reporting unit and when there is any indication of impairment.
Goodwill acquired is allocated to each of the Group‘s cash-generating units (―CGU‖) expected to benefit from
the synergies of the combination. A CGU to which goodwill has been allocated is tested for impairment annually,
or more frequently when there is indication that the CGU may be impaired. If the recoverable amount of the
CGU is less than its carrying amount, the impairment loss is allocated first to reduce the carrying amount of any
goodwill allocated to the CGU and then to the other assets of the CGU on a pro-rata basis based on the carrying
amount of each asset in the CGU. Any impairment loss for goodwill is recognized directly in net income in the
consolidated statements of comprehensive income. An impairment loss recognized for goodwill is not reversed
in subsequent periods.
(14) Impairment of non-monetary assets
Intangible assets with indefinite useful lives, such as goodwill and membership, or intangible assets that are not
yet available for use are tested for impairment annually, regardless of whether or not there is any indication of
impairment. All other assets are tested for impairment when there is an objective indication that the carrying
amount may not be recoverable, and if the indication exists. The Group estimates the recoverable amount.
Recoverable amount is the higher of value in use and net fair value less costs to sell. If the recoverable amount of
an asset is estimated to be less than its carrying amount, the carrying amount of the asset is reduced to its
recoverable amount and such impairment loss is recognized immediately in net income.
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(15) Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and
rewards of ownership to the lessee. All other leases are classified as operating leases.
1) As a lessor
Amounts due from lessees under finance leases are recognized as receivables at the amount of the Group‘s
net investment in the leases being the minimum lease payments and any unguaranteed residual value
discount interest rate implicit in the lease. Finance lease income is allocated to accounting periods so as to
reflect a constant periodic rate of return on the Group‘s net investment outstanding in respect of the leases.
Rental income from operating leases is recognized on a straight-line basis over the term of the relevant
lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying
amount of the leased asset and recognized on a straight-line basis over the lease term. Operating lease
assets are included within others in other assets and depreciated over their useful lives.
2) As a lessee
Assets held under finance leases are initially recognized as assets of the Group at their fair value at the
inception of the lease or, if lower, at the present value of the minimum lease payments. The corresponding
liability to the lessor is included in the consolidated statements of financial position as a finance lease
obligation. Lease payments are apportioned between finance expenses and reduction of the lease obligation
so as to achieve a constant rate of interest on the remaining balance of the liability. Contingent rentals
arising under finance leases are recognized as expenses in the periods in which they are incurred.
Operating lease payments are recognized as an expense on a straight-line basis over the lease term, except
where another systematic basis is more representative of the time pattern in which economic benefits from
the leased asset are consumed. Contingent rentals arising under operating leases are recognized as expenses
in the period in which they are incurred.
(16) Derivative instruments
Derivative instruments are classified as forward, futures, option, and swap, depending on the types of
transactions and are classified as either trading or hedging depending on the purpose. Derivatives are initially
recognized at fair value at the date the derivative contract is entered into and are subsequently measured to their
fair value at the end of each reporting period. The resulting gain or loss is recognized in net income immediately
unless the derivative is designated and effective as a hedging instrument.
A derivative embedded in a contract is accounted for as a stand-alone derivative if its economic characteristics
are not closely related to the economic characteristics of the host contract; unless the entire contract is measured
at fair value with changes in fair value recognized in net income.
The Group designates certain hedging instruments to (a) hedge of the exposure to changes in fair value of a
recognized asset or liability or an unrecognized firm commitment (fair value hedge); (b) hedge of the exposure to
variability in cash flows that is attributable to a particular risk associated with a recognized asset or liability or a
highly probable forecasted transaction (cash flow hedge); and (c) hedge of a net investment in a foreign
operation.
At the inception of the hedge relationship, the Group documents the relationship between the hedging instrument
and the hedged item, along with its risk management objectives and its strategy for undertaking various hedge
transactions. Furthermore, at the inception of the hedge and on an ongoing basis, the Group documents whether
the hedging instrument is highly effective in offsetting changes in fair values or cash flows of the hedged item.
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1) Fair value hedge
Changes in the fair value of derivatives that are designated and qualified as fair value hedges are
recognized in net income immediately, together with any changes in the fair value of the hedged asset or
liability that are attributable to the hedged risk. Hedge accounting is discontinued when the Group revokes
the hedging relationship or when the hedging instrument is no longer qualified for hedge accounting. The
fair value adjustment to the carrying amount of the hedged item is amortized to net income from that date
to maturity using the effective interest method.
2) Cash flow hedge
The effective portion of changes in the fair value of derivatives that are designated and qualified as cash
flow hedges is recognized in other comprehensive income. The gain or loss relating to the ineffective
portion is recognized immediately in net income. Amounts previously recognized in other comprehensive
income and accumulated in equity are reclassified to net income when the hedged item is recognized in net
income.
Hedge accounting is discontinued when the hedging instrument is expired or sold, or it is no longer
qualified for hedge accounting, and any cumulative gain or loss in other comprehensive income remains in
equity until the forecast transaction is ultimately recognized in net income. When a forecasted transaction is
no longer expected to occur, the gain or loss accumulated in equity is recognized immediately in net
income.
3) Net investment hedge
Hedges of net investments in foreign operations are accounted for similarly to cash flow hedges. The
effective portion of changes in the fair value of the hedging instrument is recognized in equity while the
ineffective portion is recognized immediately in net income. The cumulated gain and loss in other
comprehensive income is reclassified from equity to profit or loss on the disposal or partial disposal of the
foreign operations.
(17) Provisions
The Group recognizes provision if it has a present or contractual obligations as a result of the past event, it is
probable that an outflow of resources will be required to settle the obligation, and the amount of the obligation is
reliably estimated. Provision is not recognized for the future operating losses.
The Group recognizes provision related to the unused portion of point rewards earned by credit card customers,
payment guarantees, loan commitment and litigations. Where the Group is required to restore a leased property
that is used as a branch, to an agreed condition after the contractual term expires, the present value of expected
amounts to be used to dispose, decommission or repair the facilities is recognized as an asset retirement
obligation.
Where there are a number of similar obligations, the probability that an outflow will be required in settlement is
determined by considering the obligations as a whole. Although the likelihood of outflow for any one item may
be small, if it is probable that some outflow of resources will be needed to settle the obligations as a whole, a
provision is recognized.
(18) Capital and compound financial instruments
The Group classifies a financial instrument that it issues as a financial liability or an equity instrument in
accordance with the substance of the contractual arrangement. An instrument is classified as a liability if it is a
contractual obligation to deliver cash or another financial asset, or to exchange financial assets or financial
liabilities on potentially unfavorable terms. An instrument is classified as equity if it evidences a residual interest
in the assets of the Group after the deduction of liabilities. The components of a compound financial instrument
issued by the Group are classified and accounted for separately as financial liabilities or equity as appropriate.
The Group recognizes common stock as equity and redeemable preferred stocks as a liability. Direct expenses
related to the issuance of new shares or options are recognized as a deduction from equity, net of any tax effects.
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If the Group reacquires its own equity instruments, those instruments (―treasury shares‖) are presented as a
deduction from total equity. The gain or loss on the purchase, sale, issue, or cancellation of treasury shares is not
recognized in net income but recognized directly in equity.
(19) Financial guarantee contracts
Under a financial guarantee contract, the Group, in return for a fee, undertakes to meet a customer‘s obligations
under the terms of a debt instrument if the customer fails to do so.
A financial guarantee is recognized as a liability; initially at fair value and will be amortized, if not designated as
at FVTPL, subsequently at the higher of its initial value less cumulative amortization and any provision under
the contract measured in accordance with provision policy. Amortization is calculated so as to recognize fees in
net income over the period of the guarantee.
(20) Employee benefits and pensions
The Group recognizes the undiscounted amount of short-term employee benefits expecting payment in exchange
for the services, when employee renders services. Also, the Group recognizes expenses and liabilities in the case
of accumulating compensated absences, when the employees render service that increases their entitlement to
future compensated absences. Though the Group may have no legal obligation to pay a bonus, considering some
cases, the Group has a practice of paying bonuses. In such cases, the Group has a constructive obligation, and
thus recognizes expenses and liabilities when the employees render service.
The Group is operating defined contribution retirement pension plans and defined benefit retirement pension
plans. Contributions to defined contribution retirement pension plans are recognized as an expense when
employees have rendered service entitling them to the contributions. For defined benefit retirement pension plans,
the cost of providing benefits is determined using the Projected Unit Credit Method, with actuarial valuations
being carried out at the end of each reporting period. Remeasurement, comprising actuarial gains and losses, the
effect of the changes to the asset ceiling (if applicable) and the return on plan assets (excluding interest), is
reflected immediately in the statement of financial position with a charge or credit recognized in other
comprehensive income in the period in which they occur.
Remeasurement recognized in other comprehensive income is reflected immediately in retained earnings and
will not be reclassified to profit or loss. Past service cost is recognized in profit or loss in the period of a plan
amendment. Net interest is calculated by applying the discount rate at the beginning of the period to the net
defined benefit liability or asset. Defined benefit costs are composed of service cost (including current service
cost, past service cost, as well as gains and losses on curtailments and settlements), net interest expense (income),
and remeasurement.
The Group presents the service cost and net interest expense (income) components in profit or loss, and the
remeasurement component in other comprehensive income. Curtailment gains and losses are accounted for as
past service costs.
The retirement benefit obligation recognized in the consolidated statement of financial position represents the
actual deficit or surplus in the Group‘s defined benefit plans. Any surplus resulting from this calculation is
limited to the present value of any economic benefits available in the form of refunds from the plans or
reductions in future contributions to the plans.
Liabilities for termination benefits are recognized at the earlier of either 1) when the Group has become not able
to cancel its proposal for termination benefits, or 2) when the Group has recognized the cost of restructuring that
accompanies the payment of termination benefits.
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(21) Income taxes
Income tax expense represents the sum of the tax currently payable and deferred tax. Current income tax expense
approximates taxes to be paid or refunded for the current period and deferred income tax expense is provided on
an asset and liability method whereby deferred tax assets are recognized for deductible temporary differences,
including operating losses and tax credit carryforwards, and deferred tax liabilities are recognized for taxable
temporary differences. Temporary differences are the differences between the carrying values of assets and
liabilities for financial reporting purposes and their tax bases. Deferred income tax benefit or expense is then
recognized for the change in deferred tax assets or liabilities between periods. Deferred tax assets and liabilities
are measured at the tax rates on the date of enactment or substantive enactment that are expected to apply in the
period in which the liability is settled or the asset realized. Deferred tax assets, including the carry forwards of
unused tax losses, are recognized to the extent it is probable that the deferred tax assets will be realized.
Deferred income tax assets and liabilities are offset if, and only if the Group has a legally enforceable right to
offset current tax assets against current tax liabilities, and the deferred tax assets and liabilities relate to income
taxes levied by the same taxation authority on either the taxable entity or different taxable entities which intend
either to settle current tax liabilities and assets on a net basis.
The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the
extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset
to be recovered.
Deferred liabilities are not recognized if the temporary difference arises from goodwill. Deferred tax assets or
liabilities are not recognized if they arise from the initial recognition (other than in a business combination) of
other assets and liabilities in a transaction that affects neither the taxable profit nor the accounting profit.
Current and deferred tax are recognized in profit or loss, except when they relate to items that are recognized in
other comprehensive income or directly in equity, in which case, the current and deferred tax are also recognized
in other comprehensive income or directly in equity respectively.
(22) Earnings per share (―EPS‖)
Basic EPS is calculated by earnings subtracting the dividends paid to holders of preferred stock and hybrid
securities from the net income attributable to ordinary shareholders from the statements of comprehensive
income and dividing by the weighted average number of common shares outstanding. Diluted EPS is calculated
by adjusting the earnings and number of shares for the effects of all dilutive potential common shares.
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3. SIGNIFICANT ACCOUNTING ESTIMATES AND ASSUMPTIONS
- PLEASE REFER TO THE FULL VERSION OF INDEPENDENT AUDITORS’ REPORT
4. RISK MANAGEMENT
- PLEASE REFER TO THE FULL VERSION OF INDEPENDENT AUDITORS’ REPORT
5. OPERATING SEGMENTS
In evaluating the results of the Group and allocating resources, the Group‘s Chief Operation Decision Maker (the
―CODM‖) utilizes the information per types of customers. This financial information of the segments is
regularly reviewed by the CODM to make decisions about resources to be allocated to each segment and
evaluate its performance.
(1) Segment by types of customers
The Group‘s reporting segments comprise the following customers: consumer banking, corporate banking,
investment banking, capital market, credit card and headquarters and others. The reportable segments are
classified based on the target customers for whom the service is being provided. Meanwhile, the Group
recognized its credit card operation as a separate operating segment during the year ended December 31, 2015.
Therefore, the corresponding information for the year ended December 2014 was restated accordingly.
• Consumer banking: Loans/deposits and financial services for consumer, etc.
• Corporate banking: Loans/deposits and export/import, financial services for corporations, etc.
• Investment banking: Domestic/foreign investment, structured finance, M&A, Equity & fund investment
related business, venture advisory related tasks, real estate SOC development practices etc.
• Capital market: Fund management, investment securities and derivatives business, etc.
• Credit Card: Credit card, cash service and card loan, etc. ; and
• Headquarter and others: Segments that are not belong to above operating segments
1) The details of assets and liabilities by each segment are as follows (Unit: Korean Won in millions):
Consumer
banking
95,612,964
Assets
Liabilities 46,049,309
Corporate
banking
Investment
banking
107,313,193 6,646,754 7,903,460
41,772 6,410,552
170,127,944
Capital
market
December 31, 2015
Headquarter
Credit Card
Sub-total
and Others
6,604,059 73,713,629 297,794,059
5,295,225 42,578,200 270,503,002
Inter-segment
transaction
Total
(5,934,987) 291,859,072
2,046,155 272,549,157
December 31, 2014
Consumer
banking
Capital
Sub-total
market
83,582,893 96,644,808 6,411,016 6,076,739 5,732,039 76,683,360 275,130,855
136,603 4,957,708 4,542,735 46,740,752 250,002,614
Assets
Liabilities 47,625,472 145,999,344
Headquarter
and Others
Investment
banking
Corporate
banking
Credit Card
Inter-segment
transaction
Total
(4,973,636) 270,157,219
2,061,180 252,063,794
2) The details of operating income by each segment are as follows (Unit: Korean Won in millions):
For the year ended December 31, 2015
Net Interest income
Interest income
Interest expense
Inter-segment
Net non-interest income
Non-interest income
Non-interest expense
Inter-segment
Other expense
Administrative expense
Impairment losses on
credit loss and others
Operating income
Non-operating income
Net income before income
tax expense
Income tax expense
Net income from
continuing operations
Corporate
banking
1,699,913
3,255,796
Consumer
banking
1,289,088
2,850,985
(1,227,921) (1,880,195)
(333,976)
554,957
886,057
(353,032)
21,932
(1,790,292) (1,795,561)
(925,566)
(1,782,234)
Investment
banking
5,601
154,460
(18)
(148,841)
115,111
489,659
Capital
market
40,913
19,394
(81)
21,600
18,015
5,760,567
Credit Card
378,019
500,449
(122,430)
324,312
513,686
503,321
(25,993) (374,548) (5,742,552) (773,452) (2,907,816)
(58,290)
36,358
(470,592)
(553,539)
-
98,034
871,486
-
53,089
(14,933)
-
(44,187)
(16,945)
(321,265)
(124,362)
-
Headquarte
r and
Others
Sub-total
743,092 4,156,626
1,585,636 8,366,720
(4,210,094)
(979,449)
136,905
279,437 1,579,240
3,245,543 11,756,633
(10,177,393)
-
-
(4,368,808)
(3,417,579)
Inter-
segment
Total
transaction
4,761,900
605,274
8,698,235
331,515
(3,936,335)
273,759
-
-
(947,937)
631,303
(366,953) 11,389,680
(580,984) (10,758,377)
-
(4,041,617)
(3,150,389)
327,191
267,190
-
(8,058)
53,753
(19,113)
34,640
(8,383)
(869,995)
418,038
(2,189)
68,022
173,801
43,728
415,849
(98,886)
217,529
(52,642)
(27,242)
14,741
197
(196,903)
154,788
(5,150)
82,947
(951,229)
551,937 1,367,058
154,427
136,954
60,001
(15,472)
(54,067)
(891,228)
1,351,586
100,360
14,938
(3,615)
149,638
(32,780)
688,891 1,521,485
(333,197)
(136,891)
(69,539)
(43,357)
1,451,946
(376,554)
26,257
316,963
164,887
11,323
116,858
552,000
1,188,288
(112,896)
1,075,392
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F i n a n c i a l r e v i e w
For the year ended December 31, 2014
Net Interest income
Interest income
Interest expense
Inter-segment
Net non-interest income
Non-interest income
Non-interest expense
Inter-segment
Other expense
Administrative expense
Impairment losses on
credit loss and others
Operating income
Non-operating income
Net income before income
tax expense
Income tax expense
Net income from
continuing operations
Consumer
banking
Corporate
banking
Investment
banking
Capital
market
28,884
1,392,354 1,741,700
1,178
26,076
3,032,488 3,636,838 199,629
(100)
(23)
(1,591,087) (2,191,770)
2,908
296,632 (198,428)
453,799
(8,059)
65,919
438,879 348,363 3,969,660
(14,483) (282,444) (3,977,719)
29,403
(49,047)
493,762
724,288
(250,450)
19,924
-
-
(1,759,431) (1,522,783) (175,002)
(14,385)
(1,700,025)
(835,051)
(10,273)
(16,437)
Headquarte
r and
Others
Sub-total
Credit Card
287,350
548,238 3,999,704
400,569 1,587,332 8,882,932
(987,029) (4,883,228)
(113,219)
(52,065)
-
93,042
255,453 1,353,916
769,235 2,182,334 8,432,759
(676,193) (1,877,554) (7,078,843)
(49,327)
(553,185) (4,267,617)
(518,258) (3,192,772)
-
(246,943)
(108,616)
-
-
Inter-
segment
transaction
Total
-
493,314 4,493,018
328,308 9,211,240
165,006 (4,718,222)
-
(941,404)
412,512
(284,209) 8,148,550
(657,195) (7,736,038)
-
259,795 (4,007,822)
233,853 (2,958,919)
-
(59,406)
126,685
(15,444)
(687,732) (160,617)
672,716 (107,905)
39,967
(3,309)
6,164
10,552
(20,562)
111,241
(26,920)
669,407
(153,867)
(67,938)
16,441
(10,010)
2,422
(138,327)
133,449
(34,927) (1,074,845)
(188,295)
250,506 1,086,003
(2,443) 1,588,360 1,586,569 (1,649,882)
25,942 (1,048,903)
897,708
(63,313)
131,006 1,838,866 2,672,572 (1,838,177)
(28,135)
(288,195)
(98,136)
-
834,395
(288,195)
84,321
515,540
(51,497)
(7,588)
102,871 1,740,730
2,384,377
(1,838,177)
546,200
(2)
Information on products and services
The products of the Group are classified as interest-bearing products such as loans, deposits and debt securities
and non-interest bearing products such as loan commitment, credit commitment, equity securities, and credit
card service. This classification of products has been reflected in the segment information presenting interest
income and non-interest income.
(3)
Information on geographical areas
Among the Group‘s revenue (interest income and non-interest income) from services, revenue from the domestic
customers for the years ended December 31, 2015 and 2014 amounted to 18,974,359 million Won and
16,800,282 million Won, respectively, and revenue from the foreign customers amounted to 1,113,556 million
Won and 559,508 million Won, respectively. Among the Group‘s non-current assets (investments in joint
ventures and associates, investment properties, premises and equipment and intangible assets), non-current assets
attributed to domestic subsidiaries as of December 31, 2015 and 2014 are 3,666,276 million Won and 3,591,351
million Won, respectively, and foreign subsidiaries are 220,093 million Won and 211,465 million Won,
respectively.
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6. 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, 2015
2,091,064
656,183
3,286,747
610,061
6,644,055
December 31, 2014
2,597,984
585,728
2,017,798
761,351
5,962,861
(2) Material transactions not involving cash inflows and outflows are as follows (Unit: Korean Won in
millions):
Changes in other comprehensive income due to valuation
of AFS financial assets
Changes in other comprehensive income (loss)
of investment in associates
Changes in other comprehensive income
of foreign operations translation
Changes in other comprehensive loss due to
remeasurement of the net defined benefit liability
Changes in investments in associates
due to equity swap and others
Changes in unpaid dividends of hybrid equity securities
Changes in payables due to intangible assets
2015
2014
72,297
86,537
3,295
(2,974)
33,837
28,856
(78,267)
(63,426)
83,002
3,562
125,446
176,661
7,547
-
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7. FINANCIAL ASSETS AT FVTPL
.
(1) Financial assets at FVTPL consist of as follows (Unit: Korean Won in millions):
Financial assets held for trading
Financial assets designated at FVTPL
Total
December 31, 2015 December 31, 2014
5,120,062
12,595
5,132,657
4,536,918
17,262
4,554,180
(2) Financial assets held for trading are as follows (Unit: Korean Won in millions):
Deposits:
Gold banking assets
Securities:
Debt securities
December 31, 2015 December 31, 2014
24,884
13,816
Korean treasury and government agencies
Financial institutions
Corporates
Equity securities
Beneficiary certificates
CMA securities
Others
Derivatives assets
Sub-total
Total
798,397
1,175,303
643,706
62,945
14,017
-
10,313
2,704,681
2,390,497
5,120,062
668,886
927,121
620,312
99,988
48,291
32,300
14,737
2,411,635
2,111,467
4,536,918
(3) Financial assets designated at FVTPL as follows (Unit: Korean Won in millions):
Equity-linked securities
Debt securities
Equity securities
Total
December 31, 2015 December 31, 2014
-
986
11,609
12,595
6,066
-
11,196
17,262
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8. AVAILABLE FOR SALE FINANCIAL ASSETS
AFS financial assets are as follows (Unit: Korean Won in millions):
Debt securities:
December 31, 2015
Unrealized
gains
Unrealized
losses
Fair value
Book value
Korean treasury and government agencies
Financial institutions
Corporates
Asset-backed securities
Bond denominated in foreign currencies
Sub-total
Equity securities
Beneficiary certificates
Securities loaned
Others
Total
Debt securities:
Korean treasury and government agencies
Financial institutions
Corporates
Asset-backed securities
Bond denominated in foreign currencies
Sub-total
Equity securities
Beneficiary certificates
Securities loaned
Others
Total
3,529,997
5,598,416
3,809,370
260,198
649,983
13,847,964
967,911
1,119,497
717,525
16,988
16,669,885
28,880
27,473
79,303
-
790
136,446
376,079
23,148
2,488
8,687
546,848
3,558,789
(88)
5,625,825
(64)
3,887,981
(692)
258,657
(1,541)
(12,853)
637,920
(15,238) 13,969,172
1,337,707
1,118,028
720,010
25,675
(46,141) 17,170,592
(6,283)
(24,617)
(3)
-
December 31, 2014
Unrealized
gains
Unrealized
losses
Fair value
Book value
3,138,741
6,697,347
2,762,728
171,313
365,661
13,135,790
1,115,728
3,431,922
684,126
46,524
18,414,090
32,963
34,471
64,522
-
-
131,956
432,068
20,689
1,982
17,308
604,003
(124)
(357)
-
3,171,580
6,731,461
2,827,250
157,741
(13,572)
298,900
(66,761)
(80,814) 13,186,932
1,421,374
(126,422)
3,452,611
686,096
63,832
(207,248) 18,810,845
-
(12)
-
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9. HELD TO MATURITY FINANCIAL ASSETS
HTM financial assets are as follows (Unit: Korean Won in millions):
Korean treasury and government agencies
Financial institutions
Corporates
Bond denominated in foreign currencies
Total
Korean treasury and government agencies
Financial institutions
Corporates
Bond denominated in foreign currencies
Total
Book value
3,366,942
4,138,250
6,020,607
95,841
13,621,640
Book value
4,128,344
4,389,592
4,470,297
56,215
13,044,448
December 31, 2015
Unrealized
gains
Unrealized
losses
Fair value
63,895
26,417
106,541
-
196,853
(131)
(153)
(4,460)
3,430,706
4,164,514
6,122,688
95,841
(4,744) 13,813,749
-
December 31, 2014
Unrealized
gains
Unrealized
losses
Fair value
82,979
37,400
106,092
-
226,471
(37)
(175)
(2,946)
4,211,286
4,426,817
4,573,443
56,215
(3,158) 13,267,761
-
10. LOANS AND RECEIVABLES
(1) Loans and receivables are as follows (Unit: Korean Won in millions):
Due from banks
Loans
Other loan and receivables
Total
December 31, 2015 December 31, 2014
11,174,806
225,547,768
8,119,488
244,842,062
11,100,572
204,818,820
7,450,743
223,370,135
(2) Due from banks are as follows (Unit: Korean Won in millions):
December 31, 2015 December 31, 2014
Due from banks in local currency:
Due from the Bank of Korea (―BOK‖)
Due from depository banks
Due from non-depository
Due from the Korea Exchange
Others
Allowance for credit losses
Sub-total
Due from banks in foreign currencies:
Due from banks on demand
Time deposits
Others
Allowance for credit losses
Sub-total
Total
6,885,516
300,500
12,197
1,868
34,525
(2,063)
7,232,543
1,945,918
1,178,081
822,888
(4,624)
3,942,263
11,174,806
9,120,180
1,000
277,337
1,580
182,750
(2,305)
9,580,542
312,022
712,972
497,454
(2,418)
1,520,030
11,100,572
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(3) Details of restricted due from banks are as follows (Unit: Korean Won in millions):
Financial institution
Counterparty
Due from banks in local currency:
Due from The Bank of Korea
The Bank of Korea
Others
Samsung Securities Co., Ltd.
and others
Due from banks in foreign currencies:
Due from banks on demand
Others
The Bank of Korea and others
The Central Bank of China
and others
December 31,
2015
Reason of restriction
6,885,516 Reserve deposits under The
BOK Act
Reserve deposits of the futures
and options and others
34,525
6,920,041
1,944,976
Reserve deposits under The
BOK Act and others
Reserve deposits and others
811,168
2,756,144
9,676,185
Financial institution
Counterparty
December 31,
2014
Reason of restriction
The Bank of Korea
9,120,180 Reverse deposits on The BOK
Due from banks in local currency:
Due from The Bank of Korea
Others
NH Investment & Securities
Co., Ltd. and others
Due from banks in foreign currencies:
Due from banks on demand
The Bank of Korea and others
Others
The Central Bank of China
and others
Act
Treasury stock trust contracts
182,750
9,302,930
and others
296,447 Reserve deposits on The BOK
Act and others
Reserve deposits and others
469,974
766,421
10,069,351
(4) Loans are as follows (Unit: Korean Won in millions):
Loans in local currency
Loans in foreign currencies
Domestic banker‘s letter of credit
Credit card accounts
Bills bought in foreign currencies
Bills bought in local currency
Factoring receivables
Advances for customers on guarantees
Privately placed bonds
Loans to be converted to equity securities
Securitized loans
Call loans
Bonds purchased under resale agreements
Loan origination costs and fees
Others
Present value discount
Allowance for credit losses
Total
December 31, 2015 December 31, 2014
185,154,851
13,104,820
4,805,433
6,099,219
6,647,918
134,645
149,688
44,242
330,889
-
309,990
2,758,156
7,583,743
435,005
45,622
(4,985)
(2,051,468)
225,547,768
167,261,592
11,281,016
5,712,049
5,113,684
5,552,421
258,707
92,205
52,619
346,284
498
295,506
4,174,735
6,891,629
367,898
44,378
(16,913)
(2,609,488)
204,818,820
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(5) Other loan and receivables are as follows (Unit: Korean Won in millions):
CMA accounts
Receivables
Accrued income
Telex and telephone subscription rights and
refundable deposits
Other receivables
Allowance for credit losses
Total
December 31, 2015 December 31, 2014
186,000
4,662,557
885,141
213,000
5,648,159
971,179
1,056,309
650,743
(419,902)
8,119,488
1,075,068
981,672
(339,695)
7,450,743
(6) Changes in allowance for credit losses on loans and receivables are as follows (Unit: Korean Won in
millions):
Beginning balance
Net provision
Recoveries of loans previously
charged off
Charge-off
Sales of loans and receivables
Unwinding effect
Others
Ending balance
Beginning balance
Net provision
Recoveries of loans previously
charged off
Charge-off
Sales of loans and receivables
Unwinding effect
Others
Ending balance
Consumers
(326,435)
(103,166)
(29,219)
240,541
2,518
12,514
(186)
(203,433)
Consumers
(295,904)
(150,292)
(7,976)
115,339
5,833
16,666
(10,101)
(326,435)
Corporates
For the year ended December 31, 2015
Others
Credit card
(370,264)
(129,117)
(83,994)
(180,563)
(2,128,090)
(744,416)
Total
(2,953,906)
(1,112,139)
(198,089)
1,139,102
138,055
99,854
7,390
(1,686,194)
(34,207)
198,077
-
-
-
(145,810)
-
592
866
-
10,180
(442,620)
(261,515)
1,578,312
141,439
112,368
17,384
(2,478,057)
Corporates
For the year ended December 31, 2014
Others
Credit card
(453,557)
(105,613)
(15,937)
(158,603)
(2,792,558)
(791,339)
Total
(3,647,632)
(1,116,171)
(66,627)
1,173,434
140,174
137,951
70,875
(2,128,090)
(27,920)
162,691
-
336
(8)
(129,117)
-
627
5,676
223
92,704
(370,264)
(102,523)
1,452,091
151,683
155,176
153,470
(2,953,906)
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F i n a n c i a l r e v i e w
11. THE FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES
(1) The fair value hierarchy
The fair value hierarchy is determined by the levels of judgment involved in estimating fair values of financial
assets and liabilities. The specific financial instruments characteristics and market condition such as volume of
transactions and transparency are reflected to the market observable inputs. The fair value hierarchy gives the
highest priority to quoted prices (unadjusted) in active markets for identical assets or liabilities. The Group
maximizes the use of observable inputs and minimizes the use of unobservable inputs when measuring fair value
of its financial assets and financial liabilities. Fair value is measured based on the perspective of a market
participant. As such, even when market assumptions are not readily available, the Group‘s own assumptions
reflect those that market participants would use for measuring the assets or liabilities at the measurement date.
The fair value measurement is described in the one of the following three levels used to classify fair value
measurements:
•
•
•
Level 1—fair value measurements are those derived from quoted prices (unadjusted) in active markets for
identical assets or liabilities. The types of financial assets or liabilities generally included in Level 1 are
publicly traded equity securities and derivatives, and debt securities issued by governmental bodies.
.
Level 2— fair value measurements are those derived from inputs other than quoted prices included within
Level 1 that are observable for the asset or liability, either directly (i.e. prices) or indirectly (i.e. derived
from prices). The types of financial assets or liabilities generally included in Level 2 are debt securities
not traded in active markets and derivatives traded in over-the-count (―OTC‖) but not required significant
judgment.
Level 3— fair value measurements are those derived from valuation technique that include inputs for the
asset or liability that are not based on observable market data (unobservable inputs). The types of
financial assets or liabilities generally included in Level 3 are non-public securities and derivatives and
debt securities of which valuation techniques require significant judgments and subjectivity.
The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, the
level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value
measurement. The Group‘s assessment of the significance of a particular input to a fair value measurement in its
entirety requires judgment and consideration of factors specific to the asset or liability.
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(2) Fair value hierarchy of financial assets and liabilities measured at fair value are as follows (Unit: Korean
Won in millions):
Level 1 (*1)
Level 2 (*1)
Level 3 (*2)
Total
December 31, 2015
Financial assets:
Financial assets held for trading
Deposits
Debt securities
Equity securities
Beneficiary certificates
Securities loaned
Derivative assets
Sub-total
Financial assets designed at FVTPL
Debt securities
Equity securities
Sub-total
AFS financial assets
Debt securities
Equity securities
Beneficiary certificates
Securities loaned
Others
Derivative assets
Sub-total
Total
Financial liabilities:
Financial liabilities held for trading
Deposits
Derivative liabilities
Sub-total
Financial liabilities designated at FVTPL
Equity-linked securities
Debentures
Sub-total
Total
24,884
689,600
62,945
-
10,313
419
788,161
-
-
-
-
1,927,806
-
14,017
-
2,311,402
4,253,225
-
-
-
2,235,229
344,339
-
615,570
-
3,195,138
11,733,943
-
740,958
104,440
20,367
12,599,708
-
3,983,299
177,155
17,030,088
24,872
136,845
161,717
-
-
-
161,717
-
2,365,375
2,365,375
10,660
96,851
107,511
2,472,886
-
-
-
-
-
78,676
78,676
986
11,609
12,595
-
993,368
377,070
-
5,308
1,375,746
5,973
1,472,990
-
78,607
78,607
747,351
-
747,351
825,958
24,884
2,617,406
62,945
14,017
10,313
2,390,497
5,120,062
986
11,609
12,595
13,969,172
1,337,707
1,118,028
720,010
25,675
17,170,592
183,128
22,486,377
24,872
2,580,827
2,605,699
758,011
96,851
854,862
3,460,561
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Financial assets:
Financial assets held for trading
Deposits
Debt securities
Equity securities
Beneficiary certificates
CMA securities
Securities loaned
Derivative assets
Sub-total
Financial assets designed at FVTPL
Equity-linked securities
Equity securities
Sub-total
AFS financial assets
Debt securities
Equity securities
Beneficiary certificates
Securities loaned
Others
Derivative assets
Sub-total
Total
Financial liabilities:
Financial liabilities held for trading
Deposits
Derivative liabilities
Sub-total
Financial liabilities designated at FVTPL
Equity-linked securities
Debentures
Sub-total
Total
Level 1 (*1)
Level 2 (*1)
Level 3 (*2)
Total
December 31, 2014
13,816
587,593
99,988
-
-
14,737
56
716,190
-
629
629
-
1,628,726
-
48,291
32,300
-
2,062,137
3,771,454
-
-
-
2,731,782
389,456
-
475,748
-
3,596,986
10,455,150
-
3,096,917
210,348
49,591
13,812,006
-
4,313,805
184,115
17,767,575
13,927
5,819
19,746
-
-
-
19,746
-
2,092,325
2,092,325
315
159,264
159,579
2,251,904
-
-
-
-
-
-
49,274
49,274
6,066
10,567
16,633
-
1,031,918
355,694
-
14,241
1,401,853
11,946
1,479,706
-
41,711
41,711
361,993
-
361,993
403,704
13,816
2,216,319
99,988
48,291
32,300
14,737
2,111,467
4,536,918
6,066
11,196
17,262
13,186,932
1,421,374
3,452,611
686,096
63,832
18,810,845
196,061
23,561,086
13,927
2,139,855
2,153,782
362,308
159,264
521,572
2,675,354
(*1) There was no transferred between level 1 and level 2 of financial assets and liabilities measured at fair value. The Group
recognizes transfers between the levels at the end of reporting period within which events or conditions change.
(*2) Certain AFS unquoted equity securities were measured at cost as of December 31, 2015 and 2014, that are amounting to 42,451
million Won and 41,002 million Won, respectively. These unquoted equity instruments mostly represent minority investments
in special purpose entity vehicles such as asset securitization structures. They are measured at cost because (a) observable
inputs of financial information to measure fair value was not available to obtain, or (b) there is a significant variance in likely
estimated cash flows or (c) the probabilities for the various estimated cash flows could not be measured reliably. In addition,
there were no indicators of impairments in these investments and the Group has no intention to dispose these investments in the
foreseeable future.
Certain financial assets are carried at cost, even though under K-IFRS it is required to be remeasured at their fair
value, since they do not have quoted market prices in an active market and cannot be measured reliably at fair
value. Carrying amount and gain from the disposal of the financial assets which have been carried at cost
amounts to 414 million Won and 146 million Won, respectively.
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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 determines the fair value using alternative assumptions and
developing fair value measurement methods. Alternative assumptions and fair value measurement methods for
each type of financial instruments are as follows:
Debt securities
The fair value is measured by discounting the projected cash
Risk-free market rate, credit spread
Fair value measurement methods
Alternative assumptions
Equity securities
flows of debt securities by applying the market discount rate
that has been applied to a proxy company that has similar
credit rating to the issuers of the securities
Among DCF (Discounted Cash Flow) Model, FCFE (Free Cash
Flow to Equity) Model, Comparable Company Analysis,
Dividend Discount Model, Risk-adjusted Rate of Return
Method, and Net Asset Value Method, more than one method
is used given the characteristic of the subject of fair value
measurement.
Derivatives
The in-house developed model which is based on the models
that are used by market participants in the valuation of general
OTC derivative products, such as options, interest rate swaps,
and currency swap that are based on inputs observable in the
market.
However, for some complicated financial instruments of which
valuation should be based on some assumptions since some
significant or all inputs to be used in the model are not
observable in the market, the in-house derived model which is
developed from the general valuation models, such as Finite
Difference Method (―FDM‖) or Monte Carlo Simulation.
The fair value of security linked to stock prices or derivatives is
measured by the models such as DCF model, FDM, or Monte
Carlo Simulation given the natures of the securities or
underlying assets.
Financial Instruments
linked to stock
prices or
derivatives
Debenture
The fair value is measured by discounting the projected cash
flows of a debenture by applying the market discount rate that
is reflecting credit rating of the Group.
Risk-free market rate, market risk
premium, beta
Risk-free market rate, forward rate,
volatility, foreign exchange rate,
stock prices, etc.
Values of underlying assets, risk-
free market rate, market rate,
dividend and convenience yield,
correlation, volatility, credit
spread, and foreign exchange rate
Risk-free market rate, forward rate
Valuation methods of financial assets and liabilities measured at fair value and classified into Level 3 and
significant but unobservable inputs are as follows:
Fair value
measurement
technique
Input variable
Range
Impact of changes in significant unobservable
inputs on fair value measurement
Volatility of fair value increases as correlation
Derivative
assets
Option valuation
Correlation
model and others
0.315~0.938
increases
Historical
variability
Credit risk
19.10%~45.96%
variability increase
Volatility of fair value increases as historical
Fair value decreases as credit risk adjustment
adjustment ratio
99.23%
ratio increases
Derivative
liabilities
Option valuation
Correlation
model and others
Equity-linked
securities
Monte Carlo
Simulation and
others
Historical
variability
Correlation
Historical
variability
Volatility of fair value increases as correlation
0.315~0.938
increase
19.10%~45.96%
historical variability increase
Volatility of fair value increase due to
Compound financial instrument‘s fair value
0.036~0.739
13.70%~51.01%
increases as both of historical variability and
correlation increase when correlation
decreases, however, despite of increase of
historical variability, the fair value of
compound financial instrument may
decrease
Equity
securities
External appraisal
value and others
Expected growth
rate
Fair value increases as expected growth rate
0%~1%
increases
Fair value of financial assets and liabilities classified into level 3 is measured by the Group using its own
valuation techniques or using external specialists. Unobservable inputs used in the fair value measurements are
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Woori Bank
Annual Report 2015
139
F i n a n c i a l r e v i e w
produced by the internal system of the Group and the appropriateness of inputs is reviewed regularly.
(3) Changes in financial assets and liabilities classified into level 3 are as follows (Unit: Korean Won in
millions):
For the year ended December 31, 2015
January 1,
2015
Net
Income
(loss) (*1)
Other
comprehensive
income (loss)
Purchases/
Issuances
Disposals/
Settlements
Transfer to or
from level 3
(*2)
December
31, 2015
Financial assets:
Financial assets held for trading
Derivative assets (*3)
49,274
71,703
Financial assets designed at FVTPL
Equity-linked securities
Debt securities
Equity securities
Sub-total
6,066
-
10,567
16,633
-
(14)
1,042
1,028
-
-
-
-
-
(8,166)
(33,156)
(979)
78,676
-
1,000
-
1,000
(6,066)
-
-
(6,066)
-
-
-
-
-
986
11,609
12,595
AFS financial assets:
Equity securities (*4)
Beneficiary certificates
Others
Sub-total
1,031,918
355,694
14,241
1,401,853
(57,373)
3,905
(7,064)
(60,532)
105,290
105,930
(24,846) 121,613
-
227,543
1,370
81,814
(100,018)
(79,296)
(3,239)
(182,553)
(92,379) 993,368
- 377,070
5,308
-
(92,379) 1,375,746
Derivative assets
Total
11,946
1,479,706
7,375
19,574
-
81,814
-
220,377
(13,348)
(235,123)
-
5,973
(93,358) 1,472,990
Financial liabilities:
Financial liabilities held for trading
Derivative liabilities (*3)
Financial liabilities designated at
FVTPL
Equity-linked securities(*5)
Total
41,711
58,565
-
4,008
(24,475)
(1,202)
78,607
361,993
403,704
(73,533)
(14,968)
-
-
764,005
768,013
(304,917)
(329,392)
(197) 747,351
(1,399) 825,958
(*1) The loss amounting to 2,854 million Won for the year ended December 31, 2015, which is from financial assets and
liabilities that the Group holds at the end of periods, was recognized in net gain (loss) on financial instruments at FVTPL
and net gain (loss) on AFS financial assets in the consolidated statement of comprehensive income.
(*2) The Group recognizes transfers between levels at the end of reporting period within which events have occurred or
conditions have changed.
(*3) As the variables used for the valuation of equity related derivatives and interest rate related derivatives were observable in
the market, such derivatives were transferred into level 2 from level 3.
(*4) AFS financial assets were transferred out of level 1 to level 3 upon the change of the fair value measurement method of the
assets by using market the external valuation specialists from previously using quoted prices in the active market, in the
opposite case, they were transferred out of level 3 to level 1.
(*5) Since the observable market data for equity-linked securities became available, such securities were transferred out of level
3 to level 2.
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Woori Bank
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F i n a n c i a l r e v i e w
January 1,
2014
Net
Income
(loss) (*1)
Other
comprehensive
income (loss)
Purchases/
Issuances
Disposals/
Settlements
Transfer to or
from level 3
(*2)
Decrease due
to the spin-off
or disposals
December
31, 2014
For the year ended December 31, 2014
307,782
6,185
313,967
41,776
(724)
41,052
408,120
2,676
10,579
421,375
(337)
26
(12)
(323)
-
-
-
-
-
-
-
1,244
-
1,244
(108,345)
(4,433)
(112,778)
324,205
-
-
324,205
(82,468)
(2,702)
-
(85,170)
-
-
-
-
-
-
-
(193,183)
(1,028)
(194,211)
49,274
-
49,274
(643,454)
-
-
(643,454)
6,066
-
10,567
16,633
9,050
1,843,889
562,941
102,914
2,518,794
(6,048)
(137,631)
16,033
(2,439)
(130,085)
-
6,063
3,164
(1,134)
8,093
-
106,654
41,214
12,898
160,766
-
(114,450)
(66,126)
-
(180,576)
1,825
(551)
(1,935)
(70,000)
(70,661)
(4,827)
-
(672,056) 1,031,918
(199,597) 355,694
14,241
(27,998)
(904,478) 1,401,853
Financial assets:
Financial assets held for trading
Derivatives instruments assets
Others
Sub-total
Financial assets designed at
FVTPL
Equity-linked securities
Debt securities
Equity securities
Sub-total
AFS financial assets
Debt securities(*3)
Equity securities (*4)
Beneficiary certificates (*3)
Others (*3)
Sub-total
Derivative assets
Total
14,608
3,268,744
3,497
(85,859)
-
8,093
-
486,215
(6,159)
(384,683)
-
(70,661)
11,946
(1,742,143) 1,479,706
-
Financial liabilities:
Financial liabilities held for
trading
Derivative liabilities
Financial liabilities designated at
FVTPL
Equity-linked securities (*5)
Total
253,419
6,783
4,050
4,596
(43,250)
-
(183,887)
41,711
5,587,261
5,840,680
19,031
25,814
-
4,050
2,205,033
2,209,629
(815,356)
(858,606)
(88,044)
(88,044)
(6,545,932) 361,993
(6,729,819) 403,704
(*1) The loss amounting to 172,484 million Won for the year ended December 31, 2014, which is from financial assets and
liabilities that the Group holds at the end of periods, was recognized in net gain (loss) on financial instruments at FVTPL
and net gain (loss) on AFS financial assets in the consolidated statement of comprehensive income.
(*2) The Group recognizes transfers between levels at the end of reporting period within which events have occurred or
conditions have changed.
(*3) AFS financial assets were transferred from level 2 into level 3 or vice versa upon the changes in the degree of subjectivity
and uncertainty used to measure fair values, such as using quoted price in inactive market or values from external valuation
specialists, for the AFS financial assets.
(*4) AFS financial assets were transferred out of level 1 to level 3 upon the change of the fair value measurement method of the
assets by using market the external valuation specialists from previously using quoted prices in the active market, in the
opposite case, they were transferred out of level 3 to level 1.
(*5) Since the observable market data for equity-linked securities became available, such securities were transferred out of level
3 to level 2.
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Woori Bank
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141
F i n a n c i a l r e v i e w
(4) Sensitivity analysis through reasonable changes of the unobservable inputs used to measure Level 3 financial
instruments are as follows:
The sensitivity analysis of the financial instruments has been performed by classifying with favorable and
unfavorable changes based on how changes in unobservable assumptions would have effects on the fluctuations
of financial instruments‘ value. When the fair value of a financial instrument is affected by more than one
unobservable assumption, the below table reflects the most favorable or the most unfavorable changes which
resulted from varying the assumptions individually. The sensitivity analysis was performed for two types of level
3 financial instruments: (1) interest rate related derivatives, currency related derivatives, equity related
derivatives, and equity-linked securities of which fair value changes are recognized as net income; (2) equity
securities and beneficiary certificates of which fair value changes are recognized as other comprehensive income.
Equity securities classified as level 3 but measured at costs are excluded from sensitivity analysis.
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 years ended December 31, 2015 and 2014.
(Unit: Korean Won in millions):
For the year ended December 31, 2015
Net income
(loss)
income (loss)
Other comprehensive
For the year ended December 31, 2014
Net income
(loss)
income (loss)
Other comprehensive
Favorable
Unfavorable Favorable
Unfavorable Favorable
Unfavorable Favorable
Unfavorable
Financial assets:
Financial assets held for
trading
Derivatives instruments
assets (*1)(*2)
10,674
(9,729)
Financial assets designed
at FVTPL
Equity securities(*6)
AFS Financial Assets
Equity securities
(*3)(*4)
Beneficiary certificates
(*4)
Others (*5)
Total
Financial liabilities:
Financial liabilities held
for trading
Derivative liabilities
793
(739)
-
-
-
-
-
14,093
(6,471)
-
-
-
-
-
-
37,648
(20,869)
-
80,085
(39,055)
-
-
11,467
-
-
(10,468)
4,102
80
41,830
(3,875)
(80)
(24,824)
-
-
14,093
-
-
(6,471)
3,430
6,823
90,338
(3,243)
(2,858)
(45,156)
-
-
(*1)(*2)
13,469
(12,281)
Financial liabilities
designated at FVTPL
Equity-linked securities
(*1)
Total
2,289
15,758
(2,247)
(14,528)
-
-
-
-
7,939
(7,222)
-
-
1,497
9,436
(1,483)
(9,205)
-
-
-
-
-
-
(*1) Fair value changes of equity related derivatives assets and liabilities and equity-linked securities are calculated by
increasing or decreasing historical fluctuation rate of stock price and correlation, which are major unobservable variables,
by 10%, respectively. In the case of interest rate and currency related derivative assets and liabilities, fair value changes are
calculated by increasing or decreasing volatility of interest rate and credit risk adjustment ratio, which are major
unobservable variables, by 10%, respectively.
(*2) Both derivative assets and liabilities for held for trading and hedging are included.
(*3) Fair value changes of equity securities are calculated by increasing or decreasing growth rate (0~1%) and discount rate or
liquidation value (-1~1%) and discount rate. The growth rate, discount rate, and liquidation value are major unobservable
variables.
(*4) Among the equity securities, even if the sensitivity analysis of the capital contributions and beneficiary certificates is not
possible in practice, fair value changes of beneficiary certificates and other securities whose major unobservable variables
are composed of the real estate are calculated by increasing or decreasing price fluctuation of real estate which is
underlying assets and discount rate by 1%.
(*5) Fair value changes of other securities are calculated by increasing or decreasing price fluctuation of trust property or real
estate which is underlying assets and discount rate by 1%. The prices of trust property and real estates and discount rate are
major unobservable variables.
(*6) Changes of fair value are measured by increasing or decreasing the discount rate by 10%, which is major unobservable
variable, respectively.
- 54 -
Woori Bank
Annual Report 2015
142
F i n a n c i a l r e v i e w
(5) Fair value and carrying amount of financial assets and liabilities that are recorded at amortized cost are as
follows (Unit: Korean Won in millions):
As of December 31, 2015
Fair value
Level 1
Level 2
Level 3
Total
Book
value
Financial assets:
HTM financial assets
Loans and receivables
Financial liabilities:
Deposits due to customers
Borrowings
Debentures
Other financial liabilities
Financial assets:
HTM financial assets
Loans and receivables
Financial liabilities:
Deposits due to customers
Borrowings
Debentures
Other financial liabilities
1,045,022
12,768,727
13,621,640
248,253,422 248,253,422 244,842,062
13,813,749
208,133,241
20,084,789
22,288,472
16,961,987
208,133,241 209,141,826
20,033,917
21,898,859
16,964,206
20,084,789
22,288,472
16,961,987
As of December 31, 2014
Fair value
Level 1
Level 2
Level 3
Total
Book
value
1,902,558
-
11,365,202
13,044,448
- 225,284,372 225,284,372 223,370,135
13,267,760
-
- 188,673,796
17,772,085
-
24,976,056
-
16,889,129
-
- 188,673,796 188,516,465
17,707,595
-
24,795,904
-
16,889,687
-
17,772,085
24,976,056
16,889,129
The fair values of financial instruments are measured using quoted market price in active markets. In case there
is no active market for financial instruments, the Group determines the fair value using alternative assumptions
through developing fair value measurement methods. Alternative assumptions and fair value measurement
methods for financial assets and liabilities that are measured at amortized costs are given as follows:
Debt securities
The fair value is measured by
Fair value measurement methods
discounting the projected cash flows
of debt securities by applying the
market discount rate that has been
applied to a proxy company that has
similar credit rating to the issuers of
the securities
Loans and receivables
The fair value is measured by
discounting the projected cash flows
of loan products by applying the
market discount rate that has been
applied to a proxy company that has
similar credit rating to the debtor.
Alternative assumptions
Risk-free market rate and
credit spread
Risk-free market rate,
credit spread and
prepayment-rate
Deposit due to customers,
The fair value is measured by
Risk-free market rate and
Borrowings, and
Debentures
discounting the projected cash flows
of debt products by applying the
market discount rate that is reflecting
credit rating of the Group.
forward rate
- 55 -
Woori Bank
Annual Report 2015
143
F i n a n c i a l r e v i e w
b) Loaned securities
When the Group loans its securities to outside parties, the legal ownerships of the securities are transferred,
however, they should be returned at the end of lending period and therefore the Group does not derecognize
them from the consolidated financial statements as it owns majority of risks and benefits from the securities
continuously regardless of the transfer of legal ownership. The carrying amounts of securities loaned are
as follows (Unit: Korean Won in millions):
Financial assets at
FVTPL
AFS financial
assets
December 31,
2015
December 31,
2014
Loaned to
Samsung Securities Co.,
Equity securities-listed stock
Korean treasury and
government agencies bonds
Total
10,313
14,737
720,010
730,323
686,096
700,833
Ltd. and others
Korea Securities
Depository
The details of the transferred financial assets that are not derecognized in their entirety, such as disposal of
securities under repurchase agreement or loaned securities, are explained in Note 18.
(2) The offset with financial assets and liabilities
The Group possesses both the uncollected domestic exchange receivables and unpaid domestic exchange
payable, which satisfy offsetting criteria of K-IFRS 1032. Therefore, the total number of uncollected
domestic exchange receivables or unpaid domestic exchange payable has been countervailed with part of
unpaid domestic exchange payable or uncollected domestic exchange receivables, respectively, and has been
disclosed in loans and receivables or other financial liabilities of the Group‘s statements of financial position
and loans and receivables, respectively.
The Group possesses the derivative assets, derivative liabilities, receivable spot exchange, and payable spot
exchange which do not satisfy the offsetting criteria of K-IFRS 1032, but provide the Group the right of,
under the circumstances of the trading party‘s defaults, insolvency, or bankruptcy, the offsetting. Item such
as cash collateral cannot satisfy the offsetting criteria of K-IFRS 1032, but in accordance with the collateral
arrangements and under the circumstances of the trading party‘s default, insolvency, or bankruptcy, the
derivative assets, derivative liabilities, receivable spot exchange, and the net amount of payable spot
exchange can be offset.
The Group has entered into a sale and repurchase agreements and accounted it as collateralized borrowing.
Also, the Group has entered into a purchase and resale agreement and accounted it as secured loans. The
repurchase and resale agreement can have the offsetting right only under the trading party‘s default,
insolvency, or bankruptcy which do not satisfy the offsetting criteria of K-IFRS 1032, the Group recorded the
collateralized borrowings in borrowings and the secured loans in loans and receivables. The Group under the
repurchase agreements has offsetting right only upon the counter-party‘s default, insolvency or bankruptcy,
thus the repurchase agreements are applied by the TBMA/ISMA Global Master Repurchase Agreement of
which do not satisfy the offsetting criteria of K-IFRS 1032. The Group disclosed bonds sold (purchased)
under repurchase agreements as borrowings (loans and receivables).
- 57 -
Woori Bank
Annual Report 2015
144
F i n a n c i a l r e v i e w
b) Loaned securities
When the Group loans its securities to outside parties, the legal ownerships of the securities are transferred,
however, they should be returned at the end of lending period and therefore the Group does not derecognize
them from the consolidated financial statements as it owns majority of risks and benefits from the securities
continuously regardless of the transfer of legal ownership. The carrying amounts of securities loaned are
as follows (Unit: Korean Won in millions):
Financial assets at
FVTPL
AFS financial
assets
December 31,
2015
December 31,
2014
Loaned to
Samsung Securities Co.,
Equity securities-listed stock
Korean treasury and
government agencies bonds
Total
10,313
14,737
720,010
730,323
686,096
700,833
Ltd. and others
Korea Securities
Depository
The details of the transferred financial assets that are not derecognized in their entirety, such as disposal of
securities under repurchase agreement or loaned securities, are explained in Note 18.
(2) The offset with financial assets and liabilities
The Group possesses both the uncollected domestic exchange receivables and unpaid domestic exchange
payable, which satisfy offsetting criteria of K-IFRS 1032. Therefore, the total number of uncollected
domestic exchange receivables or unpaid domestic exchange payable has been countervailed with part of
unpaid domestic exchange payable or uncollected domestic exchange receivables, respectively, and has been
disclosed in loans and receivables or other financial liabilities of the Group‘s statements of financial position
and loans and receivables, respectively.
The Group possesses the derivative assets, derivative liabilities, receivable spot exchange, and payable spot
exchange which do not satisfy the offsetting criteria of K-IFRS 1032, but provide the Group the right of,
under the circumstances of the trading party‘s defaults, insolvency, or bankruptcy, the offsetting. Item such
as cash collateral cannot satisfy the offsetting criteria of K-IFRS 1032, but in accordance with the collateral
arrangements and under the circumstances of the trading party‘s default, insolvency, or bankruptcy, the
derivative assets, derivative liabilities, receivable spot exchange, and the net amount of payable spot
exchange can be offset.
The Group has entered into a sale and repurchase agreements and accounted it as collateralized borrowing.
Also, the Group has entered into a purchase and resale agreement and accounted it as secured loans. The
repurchase and resale agreement can have the offsetting right only under the trading party‘s default,
insolvency, or bankruptcy which do not satisfy the offsetting criteria of K-IFRS 1032, the Group recorded the
collateralized borrowings in borrowings and the secured loans in loans and receivables. The Group under the
repurchase agreements has offsetting right only upon the counter-party‘s default, insolvency or bankruptcy,
thus the repurchase agreements are applied by the TBMA/ISMA Global Master Repurchase Agreement of
which do not satisfy the offsetting criteria of K-IFRS 1032. The Group disclosed bonds sold (purchased)
under repurchase agreements as borrowings (loans and receivables).
- 57 -
Woori Bank
Annual Report 2015
145
F i n a n c i a l r e v i e w
As at the end of reporting periods, the financial instruments to be set off and may be covered by master
netting agreements and similar agreements are given as below:
December 31, 2015
Gross
amounts of
recognized
financial
assets
Gross
amounts of
recognized
financial
assets set off
Net
amounts of
financial
assets
presented
Related amounts not set off
in the statement of financial
position
Financial
instruments
Cash
collateral
received
Net
amounts
2,573,107
4,344,109
7,583,743
8,857
-
2,564,250
4,344,109
5,615,376
53,162
1,239,821
-
7,583,743
7,583,743
-
-
-
29,980,302 29,467,000
44,481,261 29,475,857 15,005,404 13,199,119
513,302
- 513,302
53,162 1,753,123
December 31, 2015
Gross
amounts of
recognized
financial
liabilities
Gross
amounts of
recognized
financial
liabilities set
off
Net
amounts of
financial
liabilities
presented
Related amounts not set off
in the statement of financial
position
Financial
instruments
Cash
collateral
pledged
Net
amounts
3,144,595
4,342,919
8,857
-
3,135,738
4,342,919
6,205,345
173,268
1,100,044
671,629
-
671,629
671,629
-
-
2,026,204
31,493,204 29,467,000
39,652,347 29,475,857 10,176,490
2,020,717
8,897,691
-
5,487
173,268 1,105,531
December 31, 2014
Gross
amounts of
recognized
financial
assets
Gross
amounts of
recognized
financial
assets set off
Net
amounts of
financial
assets
presented
Related amounts not set off
in the statement of financial
position
Financial
instruments
Cash
collateral
received
Net
amounts
2,316,295
3,619,768
6,891,629
16,228
-
2,300,067
3,619,768
5,413,119
37,142
469,574
-
6,891,629
6,891,629
-
-
28,094,142 27,310,235
-
40,921,834 27,326,463 13,595,371 12,304,748
783,907
- 783,907
37,142 1,253,481
December 31, 2014
Gross
amounts of
recognized
financial
liabilities
Gross
amounts of
recognized
financial
liabilities set
off
Net
amounts of
financial
liabilities
presented
Related amounts not set off
in the statement of financial
position
Financial
instruments
Cash
collateral
pledged
Net
amounts
2,478,924
3,616,169
16,228
-
2,462,696
3,616,169
5,396,870
41,229
640,766
1,196,237
-
1,196,237
1,196,237
-
-
30,636,705 27,310,235
3,326,470
37,928,035 27,326,463 10,601,572
3,147,053
9,740,160
- 179,417
41,229 820,183
Financial assets:
Derivative assets and others (*1)
Receivable spot exchange (*2)
Bonds purchased under resale
agreements (*2)
Domestic exchanges receivable
(*2)(*5)
Total
Financial liabilities:
Derivative liabilities and others (*1)
Payable spot exchange (*3)
Bonds sold under repurchase
agreements (*4)
Domestic exchanges payable
(*3)(*5)
Total
Financial assets:
Derivative assets and others (*1)
Receivable spot exchange (*2)
Bonds purchased under resale
agreements (*2)
Domestic exchanges receivable
(*2)(*5)
Total
Financial liabilities:
Derivative liabilities and others (*1)
Payable spot exchange (*3)
Bonds sold under repurchase
agreements (*4)
Domestic exchanges payable
(*3)(*5)
Total
- 58 -
Woori Bank
Annual Report 2015
146
F i n a n c i a l r e v i e w
(*1) The items include derivatives held for trading, derivatives for hedging and equity linked securities.
(*2) The items are included in loans and receivables.
(*3) The items are included in other financial liabilities.
(*4) The items are included in borrowings.
(*5) Certain financial assets and liabilities are presented as net amounts.
13. INVESTMENTS IN JOINT VENTURES AND ASSOCIATES
(1)
Investments in joint ventures and associates accounted for using the equity method of accounting are as
follows (Unit: Korean Won in millions):
Percentage of ownership (%)
December 31,
2015
December 31,
2014
Financial
statements as of
26.4
14.2
4.9
9.9
15.0
17.7
28.4
30.7
-
29.2
7.8
34.4
22.4
15.0
11.1
9.2
23.2
26.5
40.0
28.9
-
51.6
1.9
26.4
December 31
14.2 December 31
4.9 November 30(*3)
7.2
December 31
15.3
November 30(*3)
December 31
17.7
26.8 November 30(*3)
30.7 September 30(*3)
23.0
15.0 September 30(*3)
7.8 December 31
-
34.4
22.4
-
-
15.0
September 30(*3)
11.1 September 30(*3)
-
-
-
-
-
December 31
-
-
-
-
44.8
51.6 December 31
-
1.9 December 31
Subsidiaries
Main business
Woori Bank and Woori Private Equity
Company Ltd.:
Woori Blackstone Korea
Opportunity Private Equity Fund I
Finance
Woori Bank:
Kumho Tire Co., Inc. (*1)(*2)
Woori Service Networks Co., Ltd. (*4)
Korea Credit Bureau Co., Ltd.
(*5)(*7)
Korea Finance Security Co., Ltd. (*4)
(*14)
United PF 1st Corporate Financial
Stability (*5)
Chin Hung International Inc. (*2) (*6)
Poonglim Industrial Co., Ltd.
Ansang Tech Co., Ltd. (*8)
STX Engine Co., Ltd. (*1)(*2)(*9)
Samho International Co., Ltd. (*1)(*2)
Force TEC Co., Ltd. (*10)
Hana Construction Co., Ltd. (*10)
STX Corporation (*1) (*2)
Osung LST Co., Ltd. (*1) (*2)
Saman Corporation (*5)(*15)
Dongwoo C & C Co.,Ltd. (*10) (*16)
SJCO Co.,Ltd. (*10) (*16)
Manufacturing
Freight & staffing services
Credit information
Security service
Finance
Construction
〃
Manufacturing
〃
Construction
Freight & staffing services
Construction
Wholesale of non-
Specialized Goods
Manufacturing
General Construction
Technology Service
Construction
Aggregate transportation and
Wholesale
Ilyang construction Co.,Ltd. (*10)
(*16)
G2 Collection Co.,Ltd. (*10) (*16)
Construction
Wholesale and retail sales
Woori Private Equity Fund:
Phoenix Digital Tech Co., Ltd.(*13)
Woori Renaissance Holdings (*11)
Semiconductor equipment
Other financial business
Woori Private Equity Company Ltd.:
Woori Columbus First PEF (*12)
Other financial business
- 59 -
Woori Bank
Annual Report 2015
147
F i n a n c i a l r e v i e w
(*1) The Group has significant influence on these entities through its position in the creditors' council which is the
decision making body regarding to financial and operational policies of associates.
(*2) The investments in associates that have quoted market prices are Kumho Tire Co., Ltd. (current period: KRW
6,730, previous year: KRW 9,670), Chin Hung International Inc. (current period: KRW 2,300, previous year:
KRW 1,665), STX Engine Co., Ltd. (current period: KRW 6,800), Samho International Co., Ltd. (current period:
KRW 15,550, previous year: KRW 13,150), STX Corporation. (current period: KRW 3,435), and Osung LST Co.,
Ltd. (current period: KRW 795, previous year: KRW 1,215).
(*3) The significant transactions and events between the end of reporting dates of the investees and the investors have been
properly adjusted.
(*4) The significant business of Woori Service Network Co., Ltd. and Korea Finance Security Co., Ltd. is transacted mostly
with the Group.
(*5) The Group can participate in decision-making body and exercise significant influence over Korea Credit Bureau Co., Ltd.
and the United PF 1st Corporate Financial Stability through business partnerships.
(*6) Due to debt-equity swap occurred during the year ended December 31, 2015 the ownership interest of Chin Hung
International Inc. has increased.
(*7) As the Group acquired the shares of Korea Credit Bureau Co., Ltd. additionally for the year ended December 31, 2015,
the ownership interest of it has increased.
(*8) As the Group sold shares of Ansang Tech Co., Ltd. during the year ended December 31, 2015, it was excluded from the
associates.
(*9) Due to debt-equity swap and conversion of convertible bonds occurred during the year ended December 31, 2015 the
ownership interest of STX Engine Co., Ltd. increased.
(*10) The carrying value of investments in Force TEC Co., Ltd. and Hana Construction Co., Ltd., Dongwoo C & C Co.,Ltd.,
SJCO Co., Ltd., Ilyang Construction Co., Ltd. and G2 collection Co., Ltd. is nil as of December 31, 2015 and 2014,
respectively.
(*11) The Group owns over 50% ownership of Woori Renaissance Holdings. However, the investment in this entity was
accounted for using equity method as the ownership and related contracts meet the definition of joint arrangement under
K-IFRS 1111 Joint Arrangements.
(*12) As a general partner of Woori Columbus First PEF, the Group has significant influence over the entity‘s operational and
financial policy making process, including participating in dividend or other distribution. As such, the investment in this
entity was accounted for using equity method
(*13) As the Group sold shares of Phoenix Digital Tech Co., Ltd during the year ended December 31, 2015, it was excluded
from the associates.
(*14) As the Group sold some shares of Korea Finance Security Co., Ltd. during the year ended December 31, 2015, the
ownership interest of the Group has fallen.
(*15) Due to debt-equity swap occurred during the year ended December 31, 2015, it is included in the associates.
(*16) Even though the Group‘s ownership ratio of the entity is more than 20%, it does not have significant influence over the
entity due to the fact that the entity is going through workout process under receivership, thus it was excluded from the
investment in associates. However, as the workout was over during the year ended December 31, 2015, it has been
included in the investment in associates..
- 60 -
Woori Bank
Annual Report 2015
148
F i n a n c i a l r e v i e w
(2) Changes in the carrying value of investments in joint ventures and associates accounted for using the equity
method of accounting are as follows (Unit: Korean Won in millions):
Acquisition
cost
January 1,
2015
Share of
profits
(losses)
Acquisi-
tion(*)
Disposal
and others Dividends
Change in
Capital
Impairment
Other
changes
December 31,
2015
For the year ended December 31, 2015
Woori Blackstone
Korea Opportunity
First
Kumho Tire Co., Inc.
Woori Service
Networks
Co., Ltd.
Korea Credit Bureau
Co., Ltd.
Korea Finance
Security
Co., Ltd.
United PF 1st
Corporate financial
stability
Chin Hung
International Inc.
Poonglim Industrial
Co., Ltd.
STX Engine Co., Ltd.
Samho Co., Ltd.
STX Corporation
Osung LST Co., Ltd.
Saman Corporation
Phoenix Digital Tech
Co., Ltd.
Woori Renaissance
Holdings
Woori Columbus
First PEF
Total
81,608
175,652
100,436
224,829
9,266
(11,979)
108
130
21
-
-
-
2,215
3,378
335
1,098
(37,367)
-
(16,291)
-
-
1,201
-
-
(12)
-
-
480
3,337
4,272
(425)
191,617
203,418
3,350
-
-
60,275
28,491
(14,489)
29,451
13,916
47,008
7,492
42,215
15,405
8,521
-
2,293
11,257
14,347
18,482
-
10,643
(3,901)
3,012
(10,673)
(4,322)
-
-
45,030
-
-
-
8,521
1,334
-
1,610
63,000
36,019
3,518
-
-
(81)
(55)
(19,176)
-
-
-
-
-
-
-
(1,610)
-
-
-
-
-
-
-
-
-
-
(2,416)
-
-
482
(1)
1,823
56
559
4
-
-
-
(22,473) 17,144
6,031
(33,839)
18
30,660
1,200
714,903
1,084
648,436
222
(13,812)
-
84,100
-
(58,234)
-
(18,774)
-
4,604
(56,312)
53,853
56,044
214,050
139
5,291
3,711
187,592
43,936
5,313
51,276
14,325
4,251
10,985
8,521
-
37,121
1,306
643,861
(*)
Investments in associates increased by 83,002 million won through transfers between accounts, such as loan-equity swap
occurred during the year ended December 31, 2015.
Acquisition
cost
January 1,
2014
Share of
profits
(losses)
Acquisi-
tion(*1)
Disposal
and others Dividends
Change in
Capital
Impairment
Other
changes
December 31,
2014
For the year ended December 31, 2014
83,011 93,714 11,969
(1,727)
93,003 140,101 21,219 113,935 (50,007)
-
(3,520)
-
-
497
-
100,436
(916) 224,829
Woori Blackstone
Korea Opportunity
First
Kumho Tire Co., Inc.
Woori Service Networks
Co., Ltd.
Korea Credit Bureau
Korea Finance Security
Co., Ltd.
United PF 1st Corporate
financial stability
Chin Hung International
Inc.
Poonglim Industrial Co.,
Ltd.(*2)
STX Engine Co., Ltd.
SamHo Co., Ltd.
Force TEC Co., Ltd.
STX Corporation
Osung LST Co., Ltd.
Saudara Bank (*3)
DKT
KAMCO Fifth Asset
Securitization
Specialty
Phoenix Digital Tech
Co., Ltd.
Woori Renaissance
Holdings
Woori Columbus
First PEF
Total
108
136
2,215 3,347
6
31
3,337 4,311
16
191,617 203,730
(312)
60,275 45,900 (17,158)
-
-
-
-
-
-
-
-
-
-
13,917 3,079 (3,079)
47,008 47,008 (44,422)
7,492 7,492 2,284
34
34
-
-
-
-
-
-
-
-
-
918 47,323 (4,642)
-
160 67,431 (66,992)
(19,575)
(595)
-
(3,806) 15,405
-
-
-
-
-
-
50,000 20,170
(12)
-
(55)
-
-
-
-
-
-
-
-
(640)
-
-
-
-
-
-
-
-
-
-
-
-
(28,370)
-
-
-
-
-
-
-
-
(251)
-
(294)
5
-
(881)
(4)
41
-
-
130
3,378
4,272
203,418
-
-
-
-
-
-
-
28,491
-
2,292
11,257
-
14,348
18,482
-
-
-
-
36,019
1,476
(34)
-
6,887
-
-
-
-
-
8,736 3,827
521
1,872 3,688 (3,008)
63,000 39,806 2,654
-
-
-
(4,348)
921
-
-
-
-
(1,013)
(588)
-
(6,441)
1,200 1,227
(84)
626,825 617,570 (32,581) 244,094 (146,454)
21
-
(80)
-
(4,307) (1,900)
-
(35,399)
-
1,084
7,413 648,436
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(*1) Investments in associates increased by 176,661 million won through transfers between accounts, such as loan-equity swap
occurred during the year ended December 31, 2014.
(*2) The application of equity method was suspended and the book value was nil due to accumulation of loss deficit of the investee.
The unrecognized loss on valuation of investments under equity method due to the suspension of equity method on Poonglim
Co., Ltd. amounted to 10,128 million Won of the shares of loss of joint ventures and associates and 511 million Won of the
accumulated other comprehensive loss in the consolidated statement of comprehensive income for the year ended December 31,
2015.
(*3) Indonesia Woori Bank, which was a consolidated subsidiary of the Group, merged with Saudara Bank in accordance for the year
ended December 31, 2014, and the bank changed its name into PT Bank Woori Saudara Indonesia 1906 Tbk. According to this
merger, PT Bank Woori Saudara Indonesia 1906 Tbk became to be classified as subsidiary, so it was exclude from investment in
associates.
(3) Summary financial information relating to investments in joint ventures and associates accounted for
using the equity method of accounting is as follows (Unit: Korean Won in millions):
Woori Blackstone Korea Opportunity Private
Equity Fund I
Kumho Tire Co., Inc.
Woori Service Networks Co., Ltd.
Korea Credit Bureau Co., Ltd.
Korea Finance Security Co., Ltd.
United PF 1st Corporate Financial Stability
Chin Hung International Inc.
Poonglim Industrial Co., Ltd.
STX Engine Co., Ltd.
Samho Co., Ltd.
STX Corporation
Osung LST Co., Ltd.
Saman Corporation
Woori Renaissance Holdings Inc.
Woori Columbus First PEF
Woori Blackstone Korea Opportunity First
Kumho Tire Co., Inc.
Woori Service Networks Co., Ltd.
Korea Credit Bureau Co., Ltd.
Korea Finance Security Co., Ltd.
United PF 1st Corporate Financial Stability
Chin Hung International Inc.
Poonglim Industrial Co., Ltd.
STX Engine Co., Ltd.
SamHo Co., Ltd.
STX Corporation
Osung LST Co., Ltd.
Woori Renaissance Holdings Inc.
Woori Columbus First PEF
Phoenix Digital Tech Co., Ltd.
December 31, 2015
Assets
Liabilities
Operating
revenue
Net income
(loss)
212,171
5,197,002
4,577
63,960
30,195
1,088,325
516,305
352,683
958,468
709,109
1,232,014
125,859
80,970
95,421
68,466
414
3,926,952
1,772
13,076
5,457
30,390
446,412
331,801
834,499
526,379
1,181,593
42,981
49,334
28,218
562
49,264
3,039,519
14,661
53,184
50,932
117,579
624,110
206,904
417,125
892,871
1,236,168
38,767
114,592
12,013
12,158
35,099
(27,893)
824
2,005
1,890
18,911
(39,936)
13,185
36,615
39,664
(44,404)
(30,108)
(116,019)
6,813
11,570
December 31, 2014
Assets
Liabilities
Operating
revenue
Net income
(loss)
380,622
4,590,346
4,250
54,716
30,990
1,187,406
522,749
447,617
1,088,209
654,477
1,158,788
172,100
88,605
56,936
27,400
873
3,323,743
1,625
7,805
3,108
40,240
495,523
417,688
1,083,907
510,878
1,040,746
101,265
23,536
602
26,187
48,887
3,414,009
14,394
46,111
47,398
105,369
552,668
157,123
386,058
860,851
1,184,480
86,351
6,876
1,540
9,650
45,351
130,010
770
114
5,527
(1,962)
(11,481)
(16,530)
(27,878)
30,025
407,231
(44,951)
(7,334)
(178)
(4,901)
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(4) The entities that the Group has not applied equity method of accounting although the Group‘s ownership
ratio is more than 20% as of December 31, 2015 and 2014, are as follows:
Orient Shipyard Co., Ltd. (*)
Jinsaeng K Co., Ltd. (*)
The Base Enterprise Co., Ltd. (*)
Saenuel Co., Ltd. (*)
Heungjiwon Co., Ltd. (*)
E Mirae Tech Co., Ltd. (*)
Jehin Trading Co., Ltd. (*)
NK Eng Co., Ltd. (*)
The season Co., Ltd. (*)
Deokwon Food Co., Ltd. (*)
Yuil PESC Co., Ltd. (*)
Kyesan Engineering Co.,Ltd. (*)
Good Software Lab Co.,Ltd. (*)
DOWOO (*)
Reading Doctors Co., Ltd. (*)
Orient Star Logistics Co., Ltd. (*)
Wongwang Co., Ltd. (*)
As of December 31, 2015
Number of shares owned
465,050 shares
2,107,432 shares
68,470 shares
3,531shares
32,849 shares
7,696 shares
81,610 shares
697,033 shares
18,187 shares
14,300 shares
8,642 shares
60,581 shares
17,121shares
13,477 shares
7,398 shares
17,293 shares
2,590 shares
Ownership (%)
23.0
20.2
48.4
37.4
27.8
41.0
27.3
23.1
30.1
27.3
24.0
23.2
28.9
41.9
35.4
22.3
29.0
(*) Even though the Group‘s ownership ratio of the entity is more than 20% as a limited partner, it is
determined that the Group does not have significant influence over the entity since the Group cannot
exercise significant influence in the decision making bodies, such as investment committee, thus it has
been excluded from the investment in associates.
Vogo II-2 Investment Holdings Co., Ltd. (*2)
LIG engineering & construction Co., Ltd. (*1)
Orient Shipyard Co., Ltd. (*1)
Jinsaeng K Co., Ltd. (*1)
PICITY Co., Ltd. (*1)
Gdsys Co., Ltd. (*1)
G2 Collection Co., Ltd. (*1)
Alkenz Co., Ltd. (*1)
SJ Development Co., Ltd. (*1)
Ilyang Construction Co., Ltd. (*1)
Ssangyong Engineering & Construction Co.,
Ltd. (*1)
As of December 31, 2014
Number of shares owned
24,794,201,938 shares
755,946 shares
465,050 shares
2,107,432 shares
871,631 shares
300,805 shares
12,574 shares
80,402 shares
70,529 shares
105,936 shares
Ownership (%)
36.4
22.8
23.0
20.2
21.1
21.2
28.9
37.5
26.5
40.0
2,957,728 shares
20.3
(*1) Even though the Group‘s ownership ratio of the entity is more than 20%, it does not have significant
influence over the entity due to the fact that the entity is going through workout process under
receivership, thus it has been excluded from the investment in associates.
(*2) Even though the Group‘s ownership ratio of the entity is more than 20% as a limited partner, it is
determined that the Group does not have significant influence over the entity since the Group cannot
exercise significant influence in the decision making bodies, such as investment committee, thus it has
been excluded from the investment in associates.
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(5) As of December 31, 2015 and 2014, the reconciliations from the net assets of associates based on the
ownership ratio of the Group to its corresponding book value of investment in joint ventures and associates
are as follow (Unit: Korean Won in millions except for ownership):
Total net
asset
Ownership
(%)
As of December 31, 2015
Net assets of
associates
(or joint
ventures)
cost-book
value
differential Impairment
Intercompany
transaction
and others
Woori Blackstone Korea
Opportunity First
Korea Credit Bureau
Korea Finance Security Co., Ltd.
Woori Service Networks Co., Ltd.
Kumho Tire Co., Inc. (*1)
United PF 1st Corporate financial
stability
Chin Hung International Inc. (*1)
Poonglim Industrial Co., Ltd. (*1)
STX Engine Co., Ltd. (*1)
SamHo Co., Ltd.
Osung LST Co., Ltd. (*1)
Saman Corporation
STX Corporation (*1)
Woori Renaissance Holdings
Woori Columbus First PEF
211,757
50,884
24,738
2,805
1,152,161
1,057,935
68,132
(58,065)
123,969
182,730
82,878
31,636
50,421
67,203
67,904
26.4
9.9
15.0
4.9
14.2
17.7
28.4
30.7
29.2
7.8
11.1
9.2
15.0
51.6
1.9
Woori Blackstone Korea
Opportunity First
Korea Credit Bureau
Phoenix Digital Tech Co., Ltd.
Korea Finance Security Co., Ltd.
Woori Service Networks Co., Ltd.
Kumho Tire Co., Inc. (*1)
United PF 1st Corporate financial
stability
Chin Hung International Inc. (*1)
Poonglim Industrial Co., Ltd. (*1)
STX Engine Co., Ltd. (*1)
SamHo Co., Ltd.
Osung LST Co., Ltd. (*1)
STX Corporation (*1)
Woori Renaissance Holdings
Woori Columbus First PEF
Total net
asset
Ownership
(%)
379,749
46,911
1,213
27,882
2,625
1,228,329
1,147,166
26,650
(159,358)
(93,532)
143,599
(295,129)
117,709
65,069
56,334
26.4
7.2
44.8
15.3
4.9
14.2
17.7
26.8
30.7
15.0
7.8
11.1
15.0
51.6
1.9
55,900
5,043
3,711
139
163,042
187,538
19,374
(17,837)
36,230
14,325
9,238
2,911
7,552
34,677
1,304
248
48,459
24,566
45,622
14,927
35,597
5,610
24,610
6
(22,472)
(33,839)
-
(28,370)
(6,441)
144
2,549
54
(4)
-
119
(11)
-
459
8,885
(4)
As of December 31, 2014
Net assets of
associates
(or joint
ventures)
cost-book
value
differential Impairment
Intercompany
transaction
and others
100,248
3,378
543
4,272
130
173,820
203,418
7,132
(48,994)
(14,029)
11,257
(32,897)
17,639
33,576
1,082
-
-
45
-
-
48,459
-
21,359
38,356
14,927
-
51,379
24,610
-
6
-
-
(588)
-
-
-
-
-
-
-
-
-
(28,370)
(6,441)
-
188
-
-
-
-
2,550
-
-
10,638
1,394
-
-
469
8,884
(4)
Book
value
56,044
5,291
3,711
139
214,050
187,592
43,936
5,313
51,276
14,325
10,985
8,521
4,251
37,121
1,306
Book
value
100,436
3,378
-
4,272
130
224,829
203,418
28,491
-
2,292
11,257
18,482
14,348
36,019
1,084
(*1) The net asset amount is after considering preferred stocks.
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Annual Report 2015
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14. INVESTMENT PROPERTIES
(1)
Investment properties are as follows (Unit: Korean Won in millions):
Acquisition cost
Accumulated depreciation
Net carrying value
December 31, 2015
December 31, 2014
376,192
(24,696)
351,496
381,668
(24,118)
357,550
(2) Changes in investment properties are as follows (Unit: Korean Won in millions):
Beginning balance
Depreciation
Transfer
Foreign currencies translation adjustments
Others
Ending balance
For the year ended
December 31, 2015
For the year ended
December 31, 2014
357,550
(3,806)
(2,297)
49
-
351,496
340,620
(3,859)
21,760
31
(1,002)
357,550
(3) Fair value of investment properties is amounting to 371,890 million Won and 394,159 million Won as of
December 31, 2015 and 2014, respectively. The fair value of investment property, based on the assessment
that was independently performed by external appraisal agencies, is classified as level 3 on the fair value
hierarchy as of December 31, 2015 and 2014.
(4) Rental fee earned from investment properties is amounting to million Won and 5,629 million Won and
5,311 million Won as of December 31, 2015 and 2014, respectively.
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15. PREMISES AND EQUIPMENT
(1) Premises and equipment are as follows (Unit: Korean Won in millions):
December 31, 2015
Acquisition cost
Accumulated depreciation
Net carrying value
Acquisition cost
Accumulated depreciation
Net carrying value
Land
1,493,628
-
1,493,628
Building
Properties for
business use
843,343
(139,326)
704,017
965,820
(772,529)
193,291
Structures in
leased office
405,801
(326,057)
79,744
Construction
in progress Structures
Total
522
-
522
20 3,709,134
(16) (1,237,928)
4 2,471,206
December 31, 2014
Land
1,514,698
-
1,514,698
Building
Properties for
business use
817,559
(111,035)
706,524
920,222
(710,634)
209,588
Structures in
leased office
374,436
(304,251)
70,185
Construction
in progress Structures
Total
102
-
102
20 3,627,037
(15) (1,125,935)
5 2,501,102
(2) Changes in premises and equipment are as follows (Unit: Korean Won in millions):
For the year ended December 31, 2015
Beginning balance
Acquisition
Disposal
Depreciation
Classified to assets held
for sale
Foreign currencies
translation adjustment
Transfer
Others
Ending balance
Beginning balance
Acquisition
Disposal
Depreciation
Classified to assets held
for sale
Foreign currencies
translation adjustment
Acquisition through
business combination
Transfer
Others
Ending balance
Land
1,514,698
2,628
(10,780)
-
Building
Properties for
business use
706,524
21,127
(648)
(24,846)
209,588
69,230
(847)
(85,279)
Structures in
leased office
70,185
35,304
(2,000)
(36,740)
Construction
in progress Structures
Total
102
757
(313)
-
5 2,501,102
129,046
-
(14,588)
-
(146,866)
(1)
(5,109)
(8,348)
-
-
-
-
(13,457)
(328)
(7,481)
-
1,493,628
(333)
9,778
763
704,017
265
-
334
193,291
515
-
12,480
79,744
(19)
-
(5)
522
100
-
2,297
-
-
13,572
4 2,471,206
For the year ended December 31, 2014
Construction
in progress Structures
Total
Structures in
leased office
60,429
30,183
(1,195)
(26,423)
31
818
(314)
-
5 2,536,441
127,779
-
(32,758)
-
(138,686)
-
-
-
(6,904)
253
23,882
-
(21,760)
-
-
12,855
5 2,501,102
-
-
410
(439)
196
-
6,585
70,185
6
-
-
102
Land
1,516,364
1,206
(4)
-
Building
703,930
24,950
-
(23,390)
(2,019)
(4,819)
46
39
10,719
(11,614)
-
1,514,698
9,880
(10,146)
6,080
706,524
Properties for
business use
255,682
70,622
(31,245)
(88,873)
(66)
197
3,081
-
190
209,588
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Woori Bank
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16. INTANGIBLE ASSETS AND GOODWILL
(1)
Intangible assets are as follows (Unit: Korean Won in millions):
December 31, 2015
Acquisition cost
Accumulated amortization
Accumulated impairment losses
Net carrying value
Goodwill Software
103,525 170,709
- (132,538)
-
-
38,171
103,525
Industrial
rights
651
(307)
-
344
Others
Development
cost
193,020 605,821
(141,663) (400,714)
(3,338)
51,357 201,769
-
Acquisition cost
Accumulated amortization
Accumulated impairment losses
Net carrying value
Goodwill Software
107,541 163,675
- (115,854)
-
-
47,821
107,541
Industrial
rights
554
(226)
-
328
Others
Development
cost
180,983 409,972
(125,646) (346,402)
(2,763)
60,807
-
55,337
December 31, 2014
(2) Changes in intangible assets are as follows (Unit: Korean Won in millions):
Membership
deposit
Total
30,024 1,103,750
(675,222)
(8,722)
419,806
-
(5,384)
24,640
Membership
deposit
27,366
-
(3,472)
23,894
Total
890,091
(588,128)
(6,235)
295,728
Beginning balance
Acquisition
Disposal
Amortization
Impairment loss
Foreign currencies translation
adjustment
Others
Ending balance
Beginning balance
Acquisition
Disposal
Amortization
Impairment loss
Foreign currencies translation
adjustment
Classified into disposal group
held for sale
Acquisition through business
combination
Others
Ending balance
Goodwill Software
107,541
-
-
-
-
47,821
7,347
(189)
(16,809)
-
(4,016)
-
103,525
1
-
38,171
Goodwill Software
-
1,418
-
-
-
55,298
20,418
(10,839)
(16,923)
-
63
-
-
(133)
106,060
-
107,541
-
-
47,821
For the year ended December 31, 2015
Industrial
rights
Development
cost
Others
Membership
deposit
Total
328
96
-
(81)
-
1
-
344
60,807
55,337
16,751 196,139
(12)
(1,500)
(53,969)
(19,233)
(9)
-
23,894 295,728
2,510 222,843
(1,701)
(90,092)
(1,920)
-
-
(1,911)
2
-
(476)
(711)
51,357 201,769
147
-
(4,341)
(711)
24,640 419,806
For the year ended December 31, 2014
Industrial
rights
Development
cost
Others
Membership
deposit
Total
287
101
-
(72)
-
-
-
-
12
328
90,429 101,600
17,809
29,990
(38,564)
(36,092)
(47,051)
(21,167)
127
-
21,312 268,926
71,661
(85,609)
(85,213)
(1,773)
1,925
(114)
-
(1,900)
1
(976)
9
-
80
153
-
(1,109)
-
(6,848)
55,337
25,719
1,158
60,807
- 131,779
(3,087)
23,894 295,728
2,591
17. ASSETS HELD FOR SALE
Assets held for sale recognized are 17,904 million Won and 8,013 million Won as of December 31, 2015 and
2014, respectively.
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18. ASSETS SUBJECT TO LIEN AND ASSETS ACQUIRED THROUGH FORECLOSURES
(1) Assets subjected to lien are as follows (Unit: Korean Won in millions):
Due from banks
Financial assets at
FVTPL
AFS financial assets
Financial institutions debt
securities and others
Korean treasury and
government agencies
bonds
Financial institutions debt
securities and others
HTM financial assets Korean treasury and
government agencies
bonds
Korean treasury and
government agencies
bonds and others
Land and building
Due from banks
Financial assets at
FVTPL
Industrial and financial
debt securities and
others
Financial institutions debt
securities and others
Collateral given to
Korea Securities
Investment and
others
Yuanta Securities Co.,
Ltd. and others
December 31, 2015
Amount
Reason for collateral
Margin deposit for future or
483,298
option and others
220,897
Substitute securities
Banco Bilbao Vizcaya
Argentaria
Related to bonds sold under
603,274
repurchase agreements (*)
The BOK and others
3,595,581
Settlement risk and others
Nomura Securities Co.,
Ltd. and others
Related to bonds sold under
139,340
repurchase agreements (*)
The BOK and others
Credit Counselling &
Recovery Service
Total
4,657,667
Settlement risk and others
6,468
9,706,525
Leasehold rights and others
Collateral given to
Korea Investment
Securities Co., Ltd.
and others
Kiwoom Asset
Management Co.,
Ltd. and others
KDB Daewoo
Securities Co., Ltd.
and others
December 31, 2014
Amount
Reason for collateral
Margin deposit for future or
option and others
105,521
Related to bonds sold under
repurchase agreements (*)
9,851
309,213
Collaterals for customer RP
AFS financial assets
Korean treasury and
government agencies
bonds
Financial institutions debt
securities and others
Banco Bilbao Vizcaya
926,796
Related to bonds sold under
Argenaria
The Bank of Korea and
repurchase agreements (*)
others
2,064,586
Settlement risk and others
HTM financial assets Korean treasury and
government agencies
bonds
Korean treasury and
government agencies
bonds and others
Nomura Securities Co.,
Ltd. and others
Related to bonds sold under
660,212
repurchase agreements (*)
The Bank of Korea and
others
Credit Counselling &
Recovery Service
Total
3,054,173
Settlement risk and others
8,928
7,139,280
Leasehold rights and others
Land and building
(*) The Group enters into the repurchase agreements at predetermined price or original sale price added with
certain rate of return after the disposal of securities. In this regards, the securities are provided as
collaterals, and the purchasers are eligible to dispose or provide them as collateral. Therefore, as such
securities have been transferred but have not been derecognized, the Group recognizes the relevant
amount as liability (bond sold under repurchase agreements).
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(2) The carrying amounts of buildings acquired through foreclosure are as follow (Unit: Korean Won in
millions):
Land
Building
December 31, 2015
December 31, 2014
28
596
189
-
(3) Loaned securities are as follows (Unit: Korean Won in millions):
Financial assets
at FVTPL
AFS financial
assets
Equity securities-listed stock
Korean treasury and
government agencies bonds
Total
December 31,
2015
December 31,
2014
10,313
14,737
720,010
730,323
686,096
700,833
Loaned to
Samsung Securities Co.,
Ltd. and others
Korea Securities
Depository
Securities loaned are lending of specific securities to borrowers who agree to return the same quantity of the
same security at the end of lending period. As the Group does not derecognize these securities, there are no
liabilities recognized through such transactions relates to securities loaned.
(4) Collaterals held that can be disposed and re-subjected to lien regardless of defaults of counterparties
Fair values of collaterals held can be disposed and re-subjected to lien regardless of defaults of counterparties as
of December 31, 2015 and 2014 are as follows (Unit: Korean Won in millions):
Securities
Fair values of collaterals
7,661,656
Fair values of collaterals were
disposed or re-subjected to lien
December 31, 2015
Securities
Fair values of collaterals
6,790,215
Fair values of collaterals were
disposed or re-subjected to lien
December 31, 2014
-
-
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Woori Bank
Annual Report 2015
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F i n a n c i a l r e v i e w
19. OTHER ASSETS
Details of other assets are as follows (Unit: Korean Won in millions):
Prepaid expenses
Advance payments
Non-operative assets
Others
Total
December 31, 2015
124,080
1,008
624
17,574
143,286
December 31, 2014
131,267
1,097
189
12,604
145,157
20. FINANCIAL LIABILITY AT FVTPL
Financial liability at FVTPL is composed of financial liabilities held for trading and financial liabilities
designated at FVTPL.
(1) Financial liabilities at FVTPL consist of as follows (Unit: Korean Won in millions):
Financial liabilities held for trading
Financial liabilities designated at FVTPL
Total
December 31, 2015
2,605,699
854,862
3,460,561
December 31, 2014
2,153,782
521,572
2,675,354
(2) Financial liabilities held for trading are as follows (Unit: Korean Won in millions):
Deposits due to Customers:
Gold banking liabilities
Derivative liabilities
Total
December 31, 2015
December 31, 2014
24,872
2,580,827
2,605,699
13,927
2,139,855
2,153,782
(3) Financial liabilities designated at FVTPL are as follows (Unit: Korean Won in millions):
Equity linked securities index:
Equity-linked securities in short position
Debentures:
Debentures in local currency
Debentures in foreign currencies
Sub-total
Total
December 31, 2015
December 31, 2014
758,011
96,851
-
96,851
854,862
362,308
97,590
61,674
159,264
521,572
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(4) Credit risk adjustment to financial liabilities designated at FVTPL is as follows (Unit: Korean Won in
millions):
Financial liabilities designated at FVTPL
subject to credit risk adjustments
Credit risk adjustments
Accumulated changes in credit risk adjustments
854,862
(542)
(15,016)
521,572
(2,612)
(45,561)
December 31, 2015
December 31, 2014
Credit risk adjustments are applied to reflect the Group‘s own credit risk when measuring derivative liabilities at
fair value. The methodology to determine the adjustment incorporates the Group‘s credit spread as observed
through credit ratings.
(5) The differences between financial liabilities at FVTPL‘s carrying amount and nominal amount at maturity
are as follows (Unit: Korean Won in millions):
Carrying amount
Nominal amount at maturity
Difference
December 31, 2015
854,862
1,086,365
(231,503)
December 31, 2014
521,572
623,461
(101,889)
21. DEPOSITS DUE TO CUSTOMERS
Details of deposits due to customers are as follows (Unit: Korean Won in millions):
Deposits in local currency
Demand deposits
Time deposits
Mutual funds
Deposits on notes payables
Deposits on CMA
Certificate of deposits
Other deposits
Sub-total
Deposits in foreign currencies
Present value discount
Total
December 31, 2015
December 31, 2014
9,728,839
175,598,522
40,888
687,579
235,089
2,435,087
1,304,348
190,030,352
19,129,214
(17,740)
209,141,826
10,090,772
161,697,250
46,072
486,356
276,484
740,090
1,281,595
174,618,619
13,902,989
(5,143)
188,516,465
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22. BORROWINGS AND DEBENTURES
(1) Details of borrowings as are as follows (Unit: Korean Won in millions):
Borrowings in local currency:
Borrowings from The BOK
Borrowings from government funds
Others
Sub-total
Borrowings in foreign currencies:
Borrowings in foreign currencies
Offshore borrowings in foreign
currencies
Sub-total
Bills sold
Call money
Bonds sold under repurchase
agreements
Present value discount
Total
December 31, 2015
Lenders
Interest rate (%)
Amount
The Bank of Korea
Small and Medium Business
Corporation and others
The Korea Development Bank and
others
0.5 ~ 0.8
1,475,991
0.0 ~ 3.5
1,535,953
0.0 ~ 4.9
4,508,662
7,520,606
The Export-Import Bank of Korea
0.0 ~ 4.6
9,733,694
Zuercher Kantonalbank
Others
Banks
Other financial institutions
0.3 ~ 0.9
0.0 ~ 2.6
0.0 ~ 5.2
0.8 ~ 4.5
32,947
9,766,641
37,501
2,039,051
671,629
(1,511)
20,033,917
December 31, 2014
Lenders
Interest rate (%)
Amount
Borrowings in local currency:
Borrowings from The Bank of
Korea
The Bank of Korea
Borrowings from government funds
Small and Medium Business
Corporation and others
The Korea Development Bank and
others
0.5 ~ 1.0
803,317
0.0 ~ 3.5
1,680,175
0.0 ~ 3.8
4,229,396
6,712,888
Others
Sub-total
Borrowings in foreign currencies:
Borrowings in foreign currencies
Offshore borrowings in foreign
currencies
Sub-total
Bills sold
Call money
Bonds sold under repurchase
agreements
Present value discount
Total
The Export-Import Bank of Korea
0.0 ~ 3.7
7,921,772
Barclays Bank PLC
Others
Banks
Other financial institutions
0.5
0.0 ~ 2.6
0.0 ~ 3.9
1.3 ~ 4.5
17,375
7,939,147
87,692
1,771,733
1,196,237
(102)
17,707,595
(2) Debentures are as follows (Unit: Korean Won in millions):
December 31, 2015
December 31, 2014
Interest rate
(%)
0.2 ~ 12.0
3.4 ~ 13.0
17.0
Interest rate
(%)
0.8 ~ 10.5
3.4 ~ 10.3
17.0
Amount
16,868,054
5,055,311
4,006
21,927,371
(28,512)
21,898,859
Amount
18,564,367
6,248,349
51,601
24,864,317
(68,413)
24,795,904
Face value of bond
Ordinary bonds
Subordinated bonds
Other bonds
Sub-total
Discounts on bond
Total
(*) the debentures of 3,148,703 million Won and 3,421,176 million Won as of December 31, 2015 and
2014, respectively, which are fair value hedged items are included.
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23. PROVISIONS
(1) Details of provisions are as follows (Unit: Korean Won in millions):
Asset retirement obligation
Provision for guarantee (*1)
Provision for loan commitments
Provision for credit card points
Other provisions (*2)
Total
December 31, 2015 December 31, 2014
39,121
364,141
85,313
5,445
22,581
516,601
29,733
509,320
90,449
5,548
56,959
692,009
(*1) Provision for guarantee includes provision for financial guarantee of 139,002 million Won and 159,149
million Won as of December 31, 2015 and 2014, respectively.
(*2) Other provisions consist of provision for litigation, provision for loss recovery, and others.
(2) Changes in provisions except for asset retirement obligation are as follows (Unit: Korean Won in millions):
Beginning balance
Provisions provided
Provisions used and others
Reversal of unused amount
Others
Ending balance
Beginning balance
Provisions provided
Provisions used and others
Reversal of unused amount
Others
Ending balance
For the year ended December 31, 2015
Provision for
loan
commitments
Provision for
credit card
points
90,449
9,801
41
(14,976)
(2)
85,313
5,548
16,301
(16,404)
-
-
5,445
Other
Total
provisions
662,276
56,959
97,813
51,997
(86,308) (127,933)
(43) (175,051)
20,375
(24)
477,480
22,581
Provision for
guarantees
509,320
19,714
(25,262)
(160,032)
20,401
364,141
Provision for
credit card
points
For the year ended December 31, 2014
Provision for
loan
commitments
123,930
2,613
30
(36,158)
34
90,449
6,441
12,507
(13,400)
-
-
5,548
Other
provisions
Total
28,967 661,286
41,963 103,274
(77,980)
(26,208)
(68,035)
12,237
43,731
56,959 662,276
-
Provision for
guarantees
501,948
46,191
(38,402)
(31,877)
31,460
509,320
(3) Changes in asset retirement obligation are as follows (Unit: Korean Won in millions):
Beginning balance
Provisions provided
Provisions used
Depreciation
Reversal of unused amount
Increase in restoration costs and others
Ending balance
For the year ended
December 31, 2015
For the year ended
December 31, 2014
29,733
1,742
(1,316)
394
(179)
8,747
39,121
23,513
932
(746)
519
(143)
5,658
29,733
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24. NET DEFINED BENEFIT LIABILITY
The characteristics of the Group‘s defined benefit plans characteristics are as follows:
Employees and directors with one or more years of service are entitled to receive a payment upon termination of
their employment, based on their length of service and rate of pay at the time of termination. The assets of the
plans are measured at their fair value at the end of reporting date. The plan liabilities are measured using the
projected unit method, which takes account of projected earnings increases, using actuarial assumptions that give
the best estimate of the future cash flows that will arise under the plan liabilities.
The Group is exposed to various risks through Defined Benefit Retirement Pension Plan, and the most
significant risks are as follows:
Volatility of asset
The defined benefit obligation was estimated with an interest rate
calculated based on the yield of high quality corporate bonds. A
deficit may occur if the rate of return of plan assets falls short of
the interest rate.
Decrease in profitability of high
quality corporate bonds
A decrease in profitability of high quality corporate bonds will be
offset by some increase in the value of debt securities that the
employee benefit plan owns but will bring an increase in the
defined benefit liabilities.
Risk of inflation
Defined benefit obligations are related to inflation rate; the higher
the inflation rate is, the higher the level of liabilities. Therefore,
deficit occurs in the system if an inflation rate increases.
(1) Details of net defined benefit liability are as follows (Unit: Korean Won in millions):
Defined benefit obligation
Fair value of plan assets
Net defined benefit liability
December 31, 2015 December 31, 2014
901,219
(801,528)
99,691
683,961
(608,370)
75,591
(2) Changes in the carrying value of defined benefit obligation are as follows (Unit: Korean Won in millions):
Beginning balance
Current service cost
Interest cost
Remeasurements
Foreign currencies translation adjustments
Retirement benefit paid
Curtailment or settlement
Others
Ending balance
For the year ended
December 31, 2015
For the year ended
December 31, 2014
683,961
132,710
21,377
97,730
(8)
(26,516)
(8,231)
196
901,219
509,849
118,651
20,016
72,990
(133)
(32,422)
(5,570)
580
683,961
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(3) Changes in the plan assets are as follows (Unit: Korean Won in millions):
Beginning balance
Interest income
Remeasurements
Employer‘s contributions
Retirement benefit paid
Curtailment or settlement
Others
Ending balance
For the year ended
December 31, 2014
For the year ended
December 31, 2015
608,370
21,965
(5,444)
438,247
20,804
(5,504)
184,141
(22,849)
(5,525)
(944)
608,370
229,069
(22,860)
(8,240)
(21,332)
801,528
(4) Plan assets wholly consist of time deposits as of December 31, 2015 and 2014, respectively. Among plan
assets, realized returns on plan assets amount to 16,521 million Won and 15,300 million Won for the year
ended December 31, 2015 and 2014, respectively.
(5) Current service cost, net interest expense, past service cost, loss on the curtailment or settlement and
remeasurements recognized in the consolidated statements of net income and total comprehensive income
are as follows (Unit: Korean Won in millions):
Current service cost
Net interest expense (income)
Loss on the curtailment or settlement
Cost recognized in net income
Remeasurements
Cost recognized in total comprehensive income
For the year ended
December 31, 2015
For the year ended
December 31, 2014
118,651
(788)
(45)
117,818
78,494
196,312
132,710
(588)
9
132,131
103,174
235,305
Retirement benefit service costs related to defined contribution plans are recognized 3,623 million Won and
3,543 million Won for the years ended December 31, 2015 and 2014, respectively.
(6) Key actuarial assumptions used in defined benefit liability assessment are as follows:
Discount rate
Future wage growth rate
Mortality rate
Retirement rate
December 31, 2015
2.83%
6.35%
Issued by Korea Insurance
Development Institute
Experience rate for each
employment classification
December 31, 2014
3.29%
5.74%
Issued by Korea Insurance
Development Institute
Experience rate for each
employment classification
(7) The sensitivity to actuarial assumptions used in the assessment of defined benefit obligation is as follows
(Unit: Korean Won in millions):
Discount rate
Future wage growth rate
Increase by 1% point
Decrease by 1% point
Increase by 1% point
Decrease by 1% point
Defined benefit obligation as of
December 31, 2015 December 31, 2014
(66,278)
76,296
76,040
(67,267)
(101,026)
118,879
117,975
(101,900)
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25. OTHER FINANCIAL LIABILITIES AND OTHER LIABILITIES
Other financial liabilities and other liabilities are as follows (Unit: Korean Won in millions):
December 31, 2015
December 31, 2014
Other financial liabilities:
Accounts payable
Accrued expenses
Borrowings from trust accounts
Agency business revenue
Foreign exchange payables
Domestic exchange payables
Other miscellaneous financial liabilities
Present value discount
Sub-total
Other liabilities:
Unearned income
Other miscellaneous liabilities
Sub-total
Total
5,586,031
1,901,204
4,476,396
415,776
708,267
2,082,472
1,795,256
(1,196)
16,964,206
171,649
133,525
305,174
17,269,380
4,532,101
2,343,332
3,475,353
433,594
375,059
3,386,529
2,345,433
(1,714)
16,889,687
164,431
226,239
390,670
17,280,357
26. DERIVATIVES
(1) Derivative assets and derivative liabilities are as follows (Unit: Korean Won in millions):
December 31, 2015
Assets
Liabilities
Nominal
amount
Fair value
hedge
For trading
For trading
Interest rate:
Interest rate swap
Long interest rate options
Short interest rate options
111,633,234
881,679
1,086,679
180,378
-
-
Currency:
Currency futures
Currency forwards
Currency swaps
Long currency option
Short currency option
Stock:
Stock futures
Stock swaps
Long index option
Short index option
Others:
Other futures
Other forward
Other swaps
Long option
Short option
Total
423,877
56,298,910
27,070,835
1,657,911
1,366,459
169,785
10,000
682,358
2,410,815
1,100
125
78,882
41,097
142,259
203,956,005
-
-
-
-
-
-
-
2,750
-
-
-
-
-
-
183,128
923,712
13,961
-
-
759,838
617,777
63,498
-
-
-
444
-
959,347
-
15,164
-
475,646
949,921
-
13,530
-
6
-
155,386
-
-
5,363
5,904
-
2,390,497
-
39
4,781
-
7,007
2,580,827
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December 31, 2014
Assets
Liabilities
Nominal
amount
Fair value
hedge
For trading
For trading
Interest rate:
Interest rate futures
Interest rate swap
Long interest rate options
Short interest rate options
21,640
106,014,214
1,658,180
1,788,180
-
182,990
-
-
-
1,097,849
11,985
-
-
1,140,917
-
10,638
Currency:
Currency futures
Currency forwards
Currency swaps
Long currency option
Short currency option
Stock:
Stock futures
Stock swaps
Long index option
Short index option
Others:
Other futures
Other swaps
Long option
Short option
Total
382,577
40,078,267
20,902,464
1,433,050
1,614,028
46,400
10,000
352,943
767,978
592
53,035
249,081
261,883
175,634,512
-
-
-
-
-
-
-
13,071
-
-
-
-
-
196,061
-
415,209
504,858
45,617
-
-
522
1,070
-
-
342,778
572,985
-
18,176
-
-
-
19,916
-
4,481
29,876
-
2,111,467
-
4,468
-
29,977
2,139,855
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 in the consolidated statements of financial
position.
(2) Gains or losses from valuation of financial instruments under hedge accounting are as follows (Unit: Korean
Won in millions):
Losses from hedged items
Gains from hedging instruments
27. DEFERRED DAY 1 PROFIT OR LOSS
For the year ended
December 31, 2015
For the year ended
December 31, 2014
(31,297)
38,021
(64,158)
63,442
Changes in details of deferred day 1 profits or losses are as follows (Unit: Korean Won in millions):
Beginning balance
Acquisitions
Amounts recognized in profits or losses
Ending balance
For the year ended
December 31, 2015
For the year ended
December 31, 2014
13,499
26,762
(12,253)
28,008
6,256
13,367
(6,124)
13,499
In case some variables to measure fair values of financial instruments were not observable or available in the
market, valuation techniques were utilized to evaluate such financial instruments. Those financial instruments
were recorded at the fair value produced by the valuation techniques as at the time of acquisition, even though
there were difference noted between the transaction price and the fair value. The table above presents the
difference yet to be realized as profit or losses.
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28. CAPITAL STOCK AND CAPITAL SURPLUS
(1) The number of authorized shares and others are as follows:
Authorized shares of common stock
Par value
Issued shares of common stock
Capital stock
December 31, 2015
December 31, 2014
5,000,000,000 Shares
5,000 Won
676,000,000 Shares
3,381,392 million
Won
5,000,000,000 Shares
5,000 Won
676,278,371 Shares
3,381,392 million
Won
(2) Changes in numbers of issued shares of common stock are as follows (Unit: Shares):
Beginning balance
Changes due to the Merger
Retirement of treasury stock
Ending balance
December 31, 2015
December 31, 2014
676,278,371
-
(278,371)
676,000,000
806,015,340
(129,736,969)
-
676,278,371
(3) Details of capital surplus are as follows (Unit: Korean Won in millions):
Capital in excess of par value
Other capital surplus
Total
December 31, 2015
December 31, 2014
269,533
24,726
294,259
269,533
21,533
291,066
29. HYBRID SECURITIES
The bond-type hybrid securities classified as owner‘s equity are as follows (Unit: Korean Won in millions):
Issuance date
June 20, 2008
Maturity
June 20, 2038
November 22, 2011 November 22, 2041
March 8, 2012
April 25, 2013
November13, 2013 November 13, 2043
December 12, 2014 December 12, 2044
March 8, 2042
April 25, 2043
June 3, 2015
May 2, 2007
June 10, 2015
June 3, 2045
May 2, 2037
June 10, 2045
Local currency
Foreign currency
Issuance cost
Total
Annual interest
rate (%)
7.7
5.9
5.8
4.4
5.7
5.2
4.4
6.2
5.0
December
31, 2015
December
31, 2014
255,000
310,000
190,000
500,000
200,000
160,000
240,000
930,900
559,650
(11,548)
255,000
310,000
190,000
500,000
200,000
160,000
-
930,900
-
(7,077)
3,334,002 2,538,823
With respect to the hybrid securities issued, the contractual agreements allow the Group to indefinitely
extend the maturity date and defer the payment of interest. If the Group makes a resolution not to pay
dividends on common stock, and then, the Group is exonerated from interest payment on the hybrid
securities.
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30. OTHER EQUITY
(1) Details of other equity are as follows (Unit: Korean Won in millions):
Accumulated other comprehensive income:
Gain on valuation of AFS financial assets
Share of other comprehensive income of joint
ventures and associates
Loss on foreign currencies translation of foreign
operations
Remeasurement of the net defined benefit liability
Cash flow hedges
Sub-total
Treasury shares(*)
Other capital adjustments
Total
December 31, 2015
December 31, 2014
374,685
6,074
(70,789)
(197,579)
(10,371)
102,020
(34,113)
(1,615,210)
(1,547,303)
300,994
2,779
(107,721)
(119,375)
(10,371)
66,306
(37,594)
(2,421,850)
(2,393,138)
(*) The Group succeeded to the rights of treasury shares the former Woori Finance Holdings Co.,Ltd held
as the merger with Woori Finance Holdings Co.,Ltd for the year ended December 31, 2014, and 3,481
million Won was retired for the year ended December 31, 2015.
(2) Changes in the accumulated other comprehensive income are as follows (Unit: Korean Won in millions):
For the year ended December 31, 2015
Beginning
balance
Increase
(decrease) on
valuation(*)
Re-
classification
adjustments(*)
Income tax
effect
Ending
balance
300,994
190,842
(101,439)
(15,712)
374,685
2,779
4,409
(107,721)
49,421
-
-
(1,114)
6,074
(12,489)
(70,789)
(119,375)
(10,371)
66,306
(102,467)
-
142,205
-
-
(101,439)
24,263
-
(5,052)
(197,579)
(10,371)
102,020
Gain (loss) on available-for-
sale financial assets
Share of other
comprehensive income
(loss) of joint ventures
and associates
Gain (loss) on foreign
currency translation of
foreign operations
Remeasurement of the net
defined benefit liability
Cash flow hedges
Total
(*) For the change in gain (loss) on valuation of AFS financial assets, increase or decrease represents
change due to the valuation during the period, and ―reclassification adjustments‖ explains disposal or
recognition of impairment losses on AFS financial assets.
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For the year ended December 31, 2014
Beginning
balance
(*1)
Increase
(decrease) on
valuation(*2)
Reclassification
adjustments(*2)
Income tax
effect
Changes
due to the
Spin-off
Ending
balance
279,398
354,856
(241,216)
(27,102)
(64,942)
300,994
5,753
(3,464)
(244)
734
-
2,779
(136,576)
2,186
37,094
(10,425)
-
(107,721)
(68,408)
7,928
88,095
(81,476)
(6,844)
265,258
(900)
(13,671)
(218,937)
18,950
2,296
(15,547)
12,459
(80)
(52,563)
(119,375)
(10,371)
66,306
Gain (loss) on valuation of
available-for-sale
financial assets
Share of other
comprehensive income
(loss) of joint ventures
and associates
Gain (loss) on foreign
currency translation of
foreign operations
Remeasurement of the net
defined benefit liability
Cash flow hedges
Total
(*1) The accumulated other comprehensive income as of January 1, 2014 included the amounts
classified as the disposal group held for sale and the disposal group held for distribution to
owners as of December 31, 2013.
(*2) For the change in gain (loss) on valuation of AFS financial assets, increase or decrease
represents change due to the valuation during the period, and ―reclassification adjustments‖
explains disposal or recognition of impairment losses on AFS financial assets.
31. RETAINED EARNINGS
(1) Details of retained earnings are as follows (Unit: Korean Won in millions):
December 31, 2015 December 31, 2014
Legal reserve Legal reserve
Other legal reserve
Voluntary
reserve
Sub-total
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
i. Legal reserve
1,528,754
43,132
1,571,886
8,000
235,400
7,249,104
1,756,142
760,366
11,700
10,020,712
2,133,524
13,726,122
1,463,754
41,472
1,505,226
8,000
235,400
8,134,544
1,800,387
760,455
11,700
10,950,486
1,709,646
14,165,358
In accordance with the Banking Act, legal reserve are appropriated at least one tenth of the earnings after
tax on every dividend declaration, not exceeding the paid in capital. This reserve may not be used other
than for offsetting a deficit or transferring to capital.
ii. 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.
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Woori Bank
Annual Report 2015
168
F i n a n c i a l r e v i e w
iii. Business rationalization reserve
Pursuant to the Restriction of Special Taxation Act, 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.
iv. Reserve for financial structure improvement
From 2002 to 2014, 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
tangible common equity ratio equals 5.5 percent. But this reserve is not available for payment of cash
dividends; however, it can be used to reduce a deficit or be transferred to capital. The reserve and
appropriation is an Autonomous judgment matter of the Group since 2015.
v. Additional reserve and other voluntary reserve
Additional reserve and other voluntary reserve were appropriated for capital adequacy and other
management purpose.
vi. 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 shortfall amount as regulatory reserve for credit loss.
vii. Revaluation reserve
Revaluation reserve is the amount of limited dividends set by the board of directors to be the recognized
as complementary capital when the gain or loss occurred in the property revaluation by adopting K-IFRS.
(2) Changes in retained earnings are as follows (Unit: Korean Won in millions):
Beginning balance
Net income attributable to owners
Changes due to distribution to owners
Dividends on common stock
Dividends on hybrid securities
Appreciation of merger losses
Retirement of treasury stock
Others
Ending balance
For the years ended December 31
2015
14,165,358
1,059,157
- -
(504,952)
(183,320)
(806,640)
(3,481)
- -
13,726,122
2014
13,112,690
1,213,980
(110,405)
-
(50,129)
-
-
(778)
14,165,358
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Woori Bank
Annual Report 2015
169
F i n a n c i a l r e v i e w
32. REGULATORY RESERVE FOR CREDIT LOSS
In accordance with Paragraph 1 and 2 of Article 29 of the Regulation on the Supervision of Banking Business
(―RSBB‖), if the estimated provisions for credit loss under K-IFRS for the accounting purpose are lower than
those in accordance with the provisions under the RSBB, the Group shall disclose the difference as the planned
regulatory reserve for credit loss.
(1) Balance of the planned regulatory reserve for credit loss is as follows (Unit: Korean Won in millions):
Beginning balance
Planned provision (reversal) of regulatory reserve
for credit loss
Ending balance
For the years ended December 31
2015
1,756,142
499,110
2,255,252
2014
1,800,387
(44,245)
1,756,142
(2) Planned reserves provided, adjusted net income after the planned reserves provided and adjusted earnings
per share after the planned reserves provided are as follows (Unit: Korean Won in millions, except for
earnings per share amount):
Net income
Provision (reversal) of regulatory reserve for credit loss
Adjusted net income after the provision of regulatory reserve
Adjusted EPS after the provision of regulatory reserve
1,075,392
499,110
576,282
584
1,207,969
(44,245)
1,252,214
1,512
For the years ended December 31
2014 (*)
2015
(*) These are calculated by the beginning balance of the planned regulatory reserve for credit loss of the
former Woori Finance Holdings Co., Ltd.. In the case of using the beginning balance of the Group‘s, the
provision of regulatory reserve for credit loss is 505,805 million won, adjusted income after provision of
regulatory reserve is 702,164 million won, and adjusted EPS after the provision of regulatory reserve is
746 won.
33. DIVIDENDS
The Group is to pay out 168,317 million Won (250 Won per share) as dividend for the year ended December 31,
2015, and it will be reviewed and approved at the shareholders‘ meeting on March 25, 2016. As such, the
separate statements of financial position as of December 31, 2015 do not incorporate such unpaid dividend.
In addition, on July 29, 2015, the board of directors resolved the interim dividend of 250 Won per a common
share, which amounted to 168,318 million Won for the shares issued and it was paid during the year ended
December 31, 2015.
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Woori Bank
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170
F i n a n c i a l r e v i e w
34. NET INTEREST INCOME
(1) Interest income recognized are as follows (Unit: Korean Won in millions):
Financial assets at FVTPL
AFS financial assets
HTM financial assets
Loans and receivables:
Interest on due from banks
Interest on loans
Interest of other receivables
Sub-total
Total
For the years ended December 31
2014
2015
63,143
389,443
418,065
81,117
7,700,475
45,992
7,827,584
8,698,235
70,653
359,986
441,626
104,633
8,183,844
50,498
8,338,975
9,211,240
(2)
Interest expense recognized are as follows (Unit: Korean Won in millions):
Interest on deposits due to customers
Interest on borrowings
Interest on debentures
Other interest expense
Total
For the years ended December 31
2014
2015
2,888,529
216,743
707,772
123,291
3,936,335
3,450,786
251,804
885,365
130,267
4,718,222
35. NET FEES AND COMMISSIONS INCOME
(1) Fees and commissions income recognized are as follows (Unit: Korean Won in millions):
For the years ended December 31
2014
2015
Fees and commissions received (*)
Fees and commissions received for
provision of guarantee
Fees and commissions received on project
financing
Fees and commissions received on credit
card
Fees and commissions received on securities
Other fees and commissions received
Total
676,114
78,922
15,521
852,250
67,692
66,841
1,757,340
641,332
75,997
12,717
746,811
61,472
59,686
1,598,015
(*) Fees and commissions received include agency commissions, fee income from electronic finance, fee
income related to loan, fees for import letter of credit dealing, commission received on foreign
exchange and others.
(2) Fees and commissions expense incurred are as follows (Unit: Korean Won in millions):
For the years ended December 31
2014
2015
Fees paid
Credit card commissions
Brokerage commissions
Others
Total
133,909
643,524
615
2,496
780,544
36. DIVIDEND INCOME
- 83 -
Dividend income recognized are as follows (Unit: Korean Won in millions):
Dividend from financial assets at FVTPL
Dividend from AFS financial assets
Total
Woori Bank
Annual Report 2015
For the years ended December 31
171
2014
2015
1,217
101,706
102,923
115,480
555,496
168
9,856
681,000
3,178
93,634
96,812
- 84 -
35. NET FEES AND COMMISSIONS INCOME
(1) Fees and commissions income recognized are as follows (Unit: Korean Won in millions):
For the years ended December 31
2015
2014
Fees and commissions received (*)
Fees and commissions received for
provision of guarantee
Fees and commissions received on project
Fees and commissions received on credit
financing
card
Fees and commissions received on securities
Other fees and commissions received
Total
676,114
78,922
15,521
852,250
67,692
66,841
1,757,340
641,332
75,997
12,717
746,811
61,472
59,686
1,598,015
(*) Fees and commissions received include agency commissions, fee income from electronic finance, fee
income related to loan, fees for import letter of credit dealing, commission received on foreign
exchange and others.
(2) Fees and commissions expense incurred are as follows (Unit: Korean Won in millions):
Fees paid
Credit card commissions
Brokerage commissions
Others
Total
36. DIVIDEND INCOME
For the years ended December 31
2014
2015
F i n a n c i a l r e v i e w
133,909
643,524
615
2,496
780,544
115,480
555,496
168
9,856
681,000
Dividend income recognized are as follows (Unit: Korean Won in millions):
Dividend from financial assets at FVTPL
Dividend from AFS financial assets
Total
For the years ended December 31
2014
2015
1,217
101,706
102,923
3,178
93,634
96,812
37. GAINS (LOSSES) ON FINANCIAL ASSETS AT FVTPL
(1) Details of gains or losses related to financial assets at FVTPL are as follows (Unit: Korean Won in
millions):
Gains (losses) on financial assets held for trading
Gains (losses) of financial assets designated at FVTPL
Total
For the years ended December 31
2015
2014
171,137
69,205
240,342
161,851
28,061
189,912
(2) Gains (losses) on financial assets held for trading are as follows (Unit: Korean Won in millions):
Financial Assets
Securities
at FVTPL
Other financial
assets
- 84 -
Gain on valuation
Gain on disposals
Loss on valuation
Loss on disposals
Sub-total
Gain on valuation
Gain on disposals
Loss on valuation
Loss on disposals
Sub-total
Total of financial assets at FVTPL
Derivatives
(for trading)
Interest rates
derivatives
Currencies
derivatives
Equity
derivatives
Gain on transactions
and valuation
Loss on transactions
and valuation
Sub-total
Gain on transactions
and valuation
Loss on transactions
and valuation
Sub-total
Gain on transactions
and valuation
Loss on transactions
and valuation
Sub-total
Other
derivatives
Gain on transactions
and valuation
Loss on transactions
and valuation
Sub-total
Total of derivatives(for trading)
Total
For the years ended December 31
2015
2014
7,735
32,780
(13,663)
(22,771)
4,081
10,195
442
(10,189)
(208)
240
4,321
27,122
37,158
(19,441)
(45,201)
(362)
3,878
763
(4,315)
(509)
(183)
(545)
1,240,353
1,220,496
(1,251,673)
(11,320)
(1,261,289)
(40,793)
4,241,317
2,681,812
(3,987,856)
253,461
(2,499,395)
182,417
92,400
61,840
(166,528)
(74,128)
(40,342)
21,498
54,322
50,883
(55,519)
(1,197)
166,816
171,137
(51,609)
(726)
162,396
161,851
Woori Bank
Annual Report 2015
172
- 85 -
F i n a n c i a l r e v i e w
(3) Details of gains or losses on financial assets designated at FVTPL are as follows (Unit: Korean Won in
millions):
Gain (loss) on equity-linked securities
Gain (loss) on disposals of equity-linked securities
Gain on valuation of equity-linked securities
Sub-total
Gain (loss) on other securities:
Loss on disposals of other securities
Gain on valuation of other securities
Sub-total
Gain(loss) on other financial instruments:
Gain on valuation of other financial instruments
Sub-total
Total
For the years ended December 31
2015
2014
(22,363)
89,863
67,500
(62)
1,027
965
740
740
69,205
7,575
9,709
17,284
(123)
43
(80)
10,857
10,857
28,061
38. GAINS (LOSSES) ON AFS FINANCIAL ASSETS
Gains (losses) on AFS financial assets are as follows (Unit: Korean Won in millions):
Gains on redemption of securities
Gains on transaction of securities
Impairment losses on securities
Total
For the years ended December 31
2014
2015
1,089
130,457
(134,827)
(3,281)
90
171,747
(240,761)
(68,924)
39. IMPAIRMENT LOSSES DUE TO CREDIT LOSS
Impairment losses on loans and receivables, guarantees and loan commitment recognized for credit loss are as
follows (Unit: Korean Won in millions):
Impairment losses due to credit loss
Reversal of provision on (provision provided for)
guarantee
Reversal of provision on loan commitment
Total
For the years ended December 31
2015
2014
(1,112,139)
(1,116,171)
140,318
5,175
(966,646)
(14,314)
33,545
(1,096,940)
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173
F i n a n c i a l r e v i e w
40. OTHER NET OPERATING INCOMES (EXPENSES)
(1) Administrative expenses recognized are as follows (Unit: Korean Won in millions):
Employee benefits
Short term
employee benefits
Retirement benefit service costs
Termination
Salaries
Employee benefits
Sub-total
Depreciation and amortization
Other general
and administrative
expenses
Rent
Taxes and dues
Service charges
Computer and IT related
Telephone and communication
Operating promotion
Advertising
Printing
Traveling
Supplies
Insurance premium
Reimbursement
Maintenance
Water, light and heating
Vehicle maintenance
Others
Sub-total
Total
For the years ended December 31
2015
2014
1,262,786
381,283
135,754
73,119
1,852,942
236,958
295,871
103,580
233,860
100,026
60,880
46,638
58,914
10,249
9,601
6,822
7,236
23,779
14,565
15,205
10,400
62,861
1,060,487
3,150,387
1,196,332
360,158
121,361
70,459
1,748,310
223,899
266,369
101,753
215,448
106,386
58,102
44,382
51,944
10,712
7,702
6,908
5,899
18,937
14,050
15,163
10,860
52,095
986,710
2,958,919
(2) Other operating incomes recognized are as follows (Unit: Korean Won in millions):
Gains on transaction of foreign exchange
Gains on disposal of loans and receivables
Gains on transactions of derivatives
Gains on fair value hedged items
Others (*)
Total
For the years ended December 31
2015
2014
3,352,318
186,939
59,003
25,235
158,806
3,782,301
1,883,808
132,846
84,533
23,318
132,666
2,257,171
(*) Other income includes such incomes amounting to 137,187 million Won and 102,541 million Won for
the year ended December, 2015 and 2014, respectively, that the Group recognized for it is to receive
from other creditor financial institutions in accordance with the creditor financial institutions committee
agreement.
(3) Other operating expenses recognized are as follows (Unit: Korean Won in millions):
Losses on transaction of foreign exchange
KDIC deposit insurance fees
Contribution to miscellaneous funds
Losses on disposal of loans and receivables
Losses related to derivatives
Losses on fair value hedged items
Others (*)
Total
For the years ended December 31
2015
2014
3,429,638
266,031
343,703
43,266
20,982
56,532
232,210
4,392,362
1,902,316
259,140
338,386
30,480
21,091
87,476
292,548
2,931,437
(*) Other expense includes such expenses amounting to 154,897 million Won and 218,072 million Won for
the year ended December 31, 2015 and 2014, respectively, that the Group recognized for it is to carry
out a payment to other creditor financial institutions in accordance with the creditor financial
institutions committee agreement.
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Annual Report 2015
174
F i n a n c i a l r e v i e w
41. OTHER NON-OPERATING INCOMES (EXPENSES)
(1) Details of gain or loss on valuation of investments in joint ventures and associates are as follows (Unit:
Korean Won in millions):
Gain on valuation
Loss on valuation
Impairment loss
Total
For the years ended December 31
2015
2014
41,363
(55,176)
(56,311)
(70,124)
37,427
(70,008)
(35,399)
(67,980)
(2) Other non-operating incomes and expenses recognized are as follows (Unit: Korean Won in millions):
Other non-operating incomes
Other non-operating expenses
Total
For the years ended December 31
2015
2014
272,610
(102,126)
170,484
134,355
(129,688)
4,667
(3) Other non-operating incomes recognized are as follows (Unit: Korean Won in millions):
Rental fee income
Gains on disposal of investment in joint
ventures and associates
Gains on disposal of premises and equipment
and other assets
Reversal of impairment loss on premises and
equipment and other assets
Others(*)
Total
For the years ended December 31
2015
2014
8,225
61,653
6,814
539
195,379
272,610
8,058
31,414
1,398
533
92,952
134,355
(*) Other income includes such incomes amounting to 132,784 million Won for the year ended December
31, 2015 that the Group received in accordance with the final irrevocable verdict for the payment of
commitment (Note 44).
(4) Other non-operating expenses recognized are as follows (Unit: Korean Won in millions):
Depreciation on investment properties
Interest expenses of rent leasehold deposits
Losses on disposal of investment in joint ventures
and associates
Losses on disposal of premises and equipment
and other assets
Impairment losses on premises and equipment
and other assets
Donation
Others
Total
For the years ended December 31
2015
2014
3,806
688
10
2,707
2,990
46,266
45,659
102,126
4,016
1,026
1,765
1,709
2,226
52,770
66,176
129,688
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F i n a n c i a l r e v i e w
42. INCOME TAX EXPENSE
(1)
Income tax expenses are as follows (Unit: Korean Won in millions):
Current tax expense
Current tax expense in respect of the current year
Adjustments recognized in the current period in relation to
the current tax of prior periods
Sub-total
Deferred tax expense
Deferred tax expense (benefit) relating to the origination
and reversal of temporary differences
Deferred tax charged directly to equity
Sub-total
Income tax expense (benefit)
Income tax expense for continuing operations
Income tax expense (benefit) for discontinued operations
For the years ended December 31
2015
2014
362,552
514,819
(27,038)
335,514
44,884
(3,844)
41,040
376,554
376,554
-
(3,750)
511,069
(665,974)
8,923
(657,051)
(145,980)
288,195
(434,175)
(2)
Income tax expense can be reconciled to net income before income tax expense as follows (Unit: Korean
Won in millions):
Net income before income tax expense
Income from continuing operations before income tax
Income from discontinued operations before income tax
Tax calculated at statutory tax rate (*1)
Adjustments
Effect of income that is exempt from taxation
Effect of expense not deductible in determining taxable
profit
Temporary differences due to investments in subsidiaries
and joint ventures (*2)
Adjustments recognized in the current period in relation to
the current tax of prior periods
Others
Sub-total
Income tax expense (benefit)
Income tax expense for continuing operations
Income tax expense (benefit) for discontinued operations
Effective tax rate
Effective tax rate for continuing operations
Effective tax rate for discontinued operations (*3)
For the years ended December 31
2015
1,451,946
1,451,946
-
350,909
2014
1,061,988
834,395
227,593
256,540
(56,247)
(45,528)
50,152
342,057
-
(606,908)
(27,038)
58,778
25,645
376,554
376,554
-
25.93%
-
(3,750)
(88,391)
(402,520)
(145,980)
288,195
(434,175)
34.54%
-
(*1) The applicable income tax rate; 1) 11% for below 200 million Won, 2) 22% for from 200 million Won
to 20 billion Won, 3) 24.2% for above 20 billion Won.
(*2) Woori Finance Holdings Co., Ltd. was exempted from payment of sales tax in relation with the spin-off
of Kyongnam Bank Co., Ltd. and Kwangju Bank Co., Ltd. in accordance with the Restriction of Special
Taxation Act as amended on March 14, 2014. Thus, deferred tax liabilities recognized in 2013 reversed.
(*3) The effective tax rate was not calculated since the income tax expense was negative.
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Woori Bank
Annual Report 2015
176
F i n a n c i a l r e v i e w
(3) Deferred tax charged direct to equity is as follows (Unit: Korean Won in millions):
For the year ended December 31, 2015
Recognized as
other
comprehensive
income (loss)
Recognized as
income (loss)
Ending
balance
22,819
-
445,729
Beginning
balance
422,910
Gain on financial assets at FVTPL
Gain (loss) on AFS financial
assets
(105,556)
94
(16,074)
(121,536)
Gain (loss) on valuation using the
equity method of accounting
Gain (loss) on valuation of
derivatives
Accrued income
Provision for loan losses
Loan and receivables written off
Loan origination costs and fees
Defined benefit liability
Deposits with employee
retirement insurance trust
Provision for guarantee
Other provision
Others
Net deferred tax assets
21,156
(14,936)
(1,114)
5,106
(48,438)
(75,094)
(59,428)
6,921
(88,476)
151,666
(135,474)
84,530
37,029
24,355
236,101
8,664
(7,054)
8,924
47,304
(15,436)
26,912
(51,570)
(15,305)
(9,131)
(42,324)
(41,039)
-
-
-
-
-
24,845
-
-
-
(11,501)
(3,844)
(39,774)
(82,148)
(50,504)
54,225
(103,912)
203,423
(187,044)
69,225
27,898
(29,470)
191,218
Beginning
balance
(*)
232,727
(76,852)
121,906
(37,264)
(65,697)
(69,615)
10,195
(71,812)
107,498
(99,906)
91,404
38,795
-
For the year ended December 31, 2014
Merge and
Spin-off
Recognized as
income (loss)
Recognized as
other
comprehensive
income (loss)
-
-
-
-
-
-
-
-
-
-
-
-
-
190,183
(6,293)
-
(22,411)
(101,725)
(11,174)
(9,397)
10,187
(3,274)
(16,664)
24,898
(35,573)
(6,874)
(1,766)
-
115,766
975
-
-
-
-
-
19,270
5
-
-
-
(12,426)
Ending
balance
422,910
(105,556)
21,156
(48,438)
(75,094)
(59,428)
6,921
(88,476)
151,666
(135,474)
84,530
37,029
-
24,355
(75,228)
(3,757)
(542,643)
(436,492)
10,376
6,619
508,757
657,051
23,510
8,923
-
236,101
Gain on financial assets at FVTPL
Loss on AFS financial assets
Gain (loss) on valuation using the
equity method of accounting
Loss on valuation of derivatives
Accrued income
Provision for loan losses
Loan and receivables written off
Loan origination costs and fees
Defined benefit liability
Deposits with employee
retirement insurance trust
Provision for guarantee
Other provision
Investments in joint ventures and
associates
Others
Assets as held for sale / Disposal
group held for distribution to
owners
Net deferred tax assets
(*) The beginning balance incorporates the deferred tax assets (liabilities) from subsidiaries that were reclassified into
disposal group held for sale and disposal groups held for distribution to owners as of December 31, 2013.
(4) Unrealizable temporary differences are as follows (Unit: Korean Won in millions):
Deductible temporary differences
Unused tax losses
Taxable temporary differences
Total
December 31, 2015
December 31, 2014
224,452
233,687
(740,860)
(282,721)
174,200
283,523
(736,048)
(278,325)
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Woori Bank
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177
F i n a n c i a l r e v i e w
(5) Deferred tax charged direct to equity is as follows (Unit: Korean Won in millions):
Loss on available-for-sale financial assets
Share of other comprehensive loss of jointly controlled
entities and associates
Gain on foreign operations translation
Remeasurements
Total
December 31, 2015
(112,495)
December 31, 2014
(96,421)
(387)
22,923
62,575
(27,384)
782
34,424
37,674
(23,541)
(6) Current tax assets and liabilities are as follows (Unit: Korean Won in millions):
Current tax assets
Current tax liabilities
December 31, 2015
December 31, 2014
6,782
108,943
4,845
298,762
(7) Deferred tax assets and liabilities are as follows (Unit: Korean Won in millions):
Deferred tax assets
Deferred tax liabilities
Net deferred tax assets
December 31, 2015
210,597
19,379
191,218
December 31, 2014
257,858
21,757
236,101
43. EARNINGS PER SHARE (“EPS”)
Basic EPS is calculated by dividing net income by weighted average number of common shares outstanding
(Unit: Korean Won in millions except for EPS and number of shares):
Net income attributable to common shareholders
Dividends to hybrid securities
Net income attributable to common shareholders
Net income from continuing operations
Net income from discontinued operations
Weighted average number of common shares outstanding
Basic Earnings Per Share
Basic Earnings Per Share for continuing operations
Basic Earnings Per Share for discontinued operations
For the years ended December 31
2015
2014
1,059,157
(183,320)
875,837
875,837
-
673 million shares
1,301
1,301
-
1,213,980
(50,129)
1,163,851
385,160
778,691
718 million shares
1,621
536
1,085
Diluted EPS is equal to basic EPS because there is no dilution effect for the year ended December 31, 2015
and 2014.
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44. CONTINGENT LIABILITIES AND COMMITMENTS
(1) Details of guarantees are as follow (Unit: Korean Won in millions):
Confirmed guarantees
Guarantee for loans
Acceptances
Letters of guarantees
Other confirmed guarantees
Total
Unconfirmed guarantees
Local letter of credit
Letter of credit
Other unconfirmed guarantees
Total
CP purchase commitments and others
December 31, 2015
December 31, 2014
108,176
618,365
100,084
8,242,622
9,069,247
422,812
4,258,672
1,949,571
6,631,055
1,615,141
109,213
710,443
126,279
8,328,515
9,274,450
575,919
4,373,378
1,590,332
6,539,629
2,213,840
(2) Details of loan commitments and others are as follow (Unit: Korean Won in millions):
Loan commitments
Other commitments
(3) Litigation case
December 31, 2015
December 31, 2014
88,211,580
5,371,320
89,637,659
4,061,230
1) The Group had filed and faced lawsuits as follows (Unit: Korean Won in millions except for number of
cases):
December 31, 2015
December 31, 2014
As plaintiff
As defendant As plaintiff
Number of cases
Amount of litigation
Allowance for litigations
130 cases
350,899
269 cases
190,219
4,872
516 cases
827,222
As defendant
298 cases
293,527
16,343
2) Prior to December 31, 2015, the Group (Woori Bank), along with other 13 financial institutions
including the Seoul Guarantee Insurance, filed a lawsuit against Samsung Group and its associates as a
defendant in respect to the return of the fund that was guaranteed for the filing of court administration of
Samsung Motors. With respect to the lawsuit, on January 29, 2015, the Supreme Court of Korea made
the final judgment that the plaintiff should pay the guaranteed funds to the Group and other financial
institutions. The Group recognized 132,784 million Won, as gain for the year ended December 31, 2015,
in accordance with K-IFRS 1037 – Provisions, Contingent liabilities and Contingent assets.
(4) Other
The Group operates Korean Won currency settlement service as for commercial trade settlements between Korea
and Iran. In accordance with the submission request of information from U.S. prosecutors (U.S. Federal
Prosecutors and Prosecutors of the New York State), the Group is currently performing its own internal
investigation to confirm if the Group is meeting the requirements on sanction of U.S. Government in respect of
its service operation. As at the end of December 31, 2015, the Group believes that it cannot make reasonable
estimation due to possible results from such investigation.
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45. RELATED PARTY TRANSACTIONS
Related parties of the Group and assets and liabilities recognized and major transactions with related parties
during the current and prior periods are as follows:
(1) Related parties
Controlling party
(Government related
entity)
KDIC
Joint ventures
Woori Renaissance Holdings
Related parties
Associates
Woori Blackstone Korea Opportunity Private Equity Fund 1st, Korea Credit Bureau Co.,
Ltd., Korea Finance Security Co., Ltd.,
Woori Service Networks Co., Ltd., Kumho Tires Co., Inc.,
United PF 1st Corporate Financial Stability, Chin Hung International Inc.,
Poonglim Industrial Co., Ltd.,
Hana Engineering & Construction Co., Ltd., STX Engine Co., Ltd.,
Samho International Co., Ltd., Force TEC Co., Ltd.,
Woori Columbus 1st Private Equity Fund, STX Corporation, Osung LST Co., Ltd.,
Dongwoo C & C Co., Ltd., Sjco Co., Ltd., Ilyang Construction Co., Ltd., G2 Collection Co.,
Ltd. and Saman Corporation
(2) Assets and liabilities from transactions with related parties are as follows (Unit: Korean Won in millions):
Related party
KDIC
Controlling party
(Government related
entity)
A title of account
Loans
Allowance for credit loss
Other assets
Deposits
Other liabilities
Joint ventures
Woori Renaissance
Holdings
Other assets
Associates
Kumho Tires Co., Ltd.
Loans
Allowance for credit loss
Deposits
Other liabilities
Korea Credit Bureau
Co., Ltd.
Loans
Deposits
Other liabilities
Korea Finance Security
Co., Ltd.
Woori Service Networks
Co., Ltd.
Loans
Allowance for credit loss
Deposits
Other liabilities
Loans
Allowance for credit loss
Deposits
Other liabilities
December 31,
2015
December 31,
2014
30
-
510,193
930,231
9,812
2,416
280,333
(553)
67,815
116
7
9,038
54
51
-
1,468
7
27
-
3,821
381
314
(108)
691,101
1,157,232
12,252
-
334,948
(2,968)
80,978
87
2
3,215
19
46
(1)
2,738
12
26
(1)
3,169
115
United PF 1st Corporate
Financial Stability
Deposits
20
30
Woori Blackstone Korea
Opportunity Private
Equity Fund 1st
Other assets
Other liabilities
175
934
626
-
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44. CONTINGENT LIABILITIES AND COMMITMENTS
(1) Details of guarantees are as follow (Unit: Korean Won in millions):
Confirmed guarantees
Guarantee for loans
Acceptances
Letters of guarantees
Other confirmed guarantees
Total
Unconfirmed guarantees
Local letter of credit
Letter of credit
Other unconfirmed guarantees
Total
CP purchase commitments and others
December 31, 2015
December 31, 2014
108,176
618,365
100,084
8,242,622
9,069,247
422,812
4,258,672
1,949,571
6,631,055
1,615,141
109,213
710,443
126,279
8,328,515
9,274,450
575,919
4,373,378
1,590,332
6,539,629
2,213,840
(2) Details of loan commitments and others are as follow (Unit: Korean Won in millions):
Loan commitments
Other commitments
(3) Litigation case
December 31, 2015
December 31, 2014
88,211,580
5,371,320
89,637,659
4,061,230
1) The Group had filed and faced lawsuits as follows (Unit: Korean Won in millions except for number of
cases):
December 31, 2015
December 31, 2014
As plaintiff
As defendant As plaintiff
Number of cases
Amount of litigation
Allowance for litigations
130 cases
350,899
269 cases
190,219
4,872
516 cases
827,222
As defendant
298 cases
293,527
16,343
2) Prior to December 31, 2015, the Group (Woori Bank), along with other 13 financial institutions
including the Seoul Guarantee Insurance, filed a lawsuit against Samsung Group and its associates as a
defendant in respect to the return of the fund that was guaranteed for the filing of court administration of
Samsung Motors. With respect to the lawsuit, on January 29, 2015, the Supreme Court of Korea made
the final judgment that the plaintiff should pay the guaranteed funds to the Group and other financial
institutions. The Group recognized 132,784 million Won, as gain for the year ended December 31, 2015,
in accordance with K-IFRS 1037 – Provisions, Contingent liabilities and Contingent assets.
(4) Other
The Group operates Korean Won currency settlement service as for commercial trade settlements between Korea
and Iran. In accordance with the submission request of information from U.S. prosecutors (U.S. Federal
Prosecutors and Prosecutors of the New York State), the Group is currently performing its own internal
investigation to confirm if the Group is meeting the requirements on sanction of U.S. Government in respect of
its service operation. As at the end of December 31, 2015, the Group believes that it cannot make reasonable
estimation due to possible results from such investigation.
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45. RELATED PARTY TRANSACTIONS
Related parties of the Group and assets and liabilities recognized and major transactions with related parties
during the current and prior periods are as follows:
(1) Related parties
Controlling party
(Government related
entity)
KDIC
Joint ventures
Woori Renaissance Holdings
Related parties
Associates
Woori Blackstone Korea Opportunity Private Equity Fund 1st, Korea Credit Bureau Co.,
Ltd., Korea Finance Security Co., Ltd.,
Woori Service Networks Co., Ltd., Kumho Tires Co., Inc.,
United PF 1st Corporate Financial Stability, Chin Hung International Inc.,
Poonglim Industrial Co., Ltd.,
Hana Engineering & Construction Co., Ltd., STX Engine Co., Ltd.,
Samho International Co., Ltd., Force TEC Co., Ltd.,
Woori Columbus 1st Private Equity Fund, STX Corporation, Osung LST Co., Ltd.,
Dongwoo C & C Co., Ltd., Sjco Co., Ltd., Ilyang Construction Co., Ltd., G2 Collection Co.,
Ltd. and Saman Corporation
(2) Assets and liabilities from transactions with related parties are as follows (Unit: Korean Won in millions):
Related party
KDIC
Controlling party
(Government related
entity)
A title of account
Loans
Allowance for credit loss
Other assets
Deposits
Other liabilities
Joint ventures
Woori Renaissance
Holdings
Other assets
Associates
Kumho Tires Co., Ltd.
Loans
Allowance for credit loss
Deposits
Other liabilities
Korea Credit Bureau
Co., Ltd.
Loans
Deposits
Other liabilities
Korea Finance Security
Co., Ltd.
Woori Service Networks
Co., Ltd.
Loans
Allowance for credit loss
Deposits
Other liabilities
Loans
Allowance for credit loss
Deposits
Other liabilities
December 31,
2015
December 31,
2014
30
-
510,193
930,231
9,812
2,416
280,333
(553)
67,815
116
7
9,038
54
51
-
1,468
7
27
-
3,821
381
314
(108)
691,101
1,157,232
12,252
-
334,948
(2,968)
80,978
87
2
3,215
19
46
(1)
2,738
12
26
(1)
3,169
115
United PF 1st Corporate
Financial Stability
Deposits
20
30
Woori Blackstone Korea
Opportunity Private
Equity Fund 1st
Other assets
Other liabilities
175
934
626
-
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For the years ended
December 31
Related party
A title of account
2015
Associates
Force TEC C Co., Ltd.
Interest income
Interest expenses
Impairment losses due to
credit loss
(reversal of impairment
losses due to credit loss)
Hana Engineering &
Reversal of impairment
Construction Co., Ltd.
losses due to credit loss
STX Engine Co., Ltd.
STX Corporation
Osung LST Co. ,Ltd.
Ilyang Construction
Interest income
Fees income
Interest expenses
Impairment losses due to
credit loss
Interest income
Fees income
Interest expenses
Reversal of impairment
losses due to credit loss
Interest income
Interest expenses
Reversal of impairment
losses due to credit loss
Impairment losses due to
249
-
2014
1,157
3
5,900
(25,532)
(98)
-
1,358
67
46
2,982
81
48
20,524
13,787
1,729
89
6
2,056
-
6
(4,060)
(146,680)
226
16
527
31
(223)
(4,819)
Co., Ltd.
credit loss
215
-
(*1) As the subsidiary sold shares of Phoenix Digital Tech Co., Ltd. during the year ended December 31, 2015, it is
excluded from the related party.
(*2) As the Group sold shares of Ansang Tech Co., Ltd. during the year ended December 31, 2015 it is excluded from
the related parties.
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(4) Guarantees provided to the related parties are as follows (Unit: Korean Won in millions):
December 31, 2015 December 31, 2014
KDIC
Kumho Tires Co., Inc.
Korea Finance Security Co., Ltd.
Korea Credit Bureau Co., Ltd.
Woori Service Networks Co., Ltd.
Chin Hung International Inc.
Phoenix Digital Tech Co., Ltd.
STX Engine Co., Ltd.
SamHo Co., Ltd.
Force TEC Co., Ltd.
STX corporation
1,500,470
11,623
143,756
209
28
173
40,847
-
74,135
13,019
-
28,976
5,954
23,235
9,131
1,500,386 Loan commitment
Letter of credit
18,110
88,638 Loan commitment
214 Loan commitment
33 Loan commitment
179 Loan commitment
40,630 Loan commitment
261 Loan commitment
81,431 Letter of credit
4,600 Loan commitment
2,360 Letter of credit
27,299 Loan commitment
6,325 Loan commitment
30,062 Letter of credit and others
13,009 Loan commitment
(*) For the guarantee provided to the related parties, the Group recognized provisions for guarantees amounting to
10,122 million Won and 2,170 million Won, respectively, as of December 31, 2015 and December 31, 2014.
(5) Compensation for key management is as follows (Unit: Korean Won in millions):
Short term benefits
Severance payments
Total
For the years ended December 31
2015
2014
6,421
312
6,733
11,542
464
12,006
Key management includes registered executives and non-registered executives. Outstanding assets and
liabilities from transactions with key management amount to 747 million Won and 2,712 million Won,
respectively, as of December 31, 2015. With respect to the assets, the Group has not recognized any
allowance, nor provision.
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46. TRUST ACCOUNTS
(1) Trust accounts of the Group are as follows (Unit: Korean Won in millions):
Total assets
Operating income
Trust accounts
December 31,
2015
34,135,580
December 31,
2014
31,225,968
For the year ended
December 31, 2015
For the year ended
December 31, 2014
751,425
784,155
(2) Receivables and payables from the transactions between the Group and trust accounts are as follows (Unit:
Korean Won in millions):
Receivables
Trust fees receivables
Payables
December 31, 2015
December 31, 2014
18,704
17,956
Borrowings from trust accounts
3,794,847
2,949,097
(3) Significant transactions between the Group and trust accounts are as follows (Unit: Korean Won in
millions):
Revenue
Trust fees
Expense
For the years ended December 31
2015
2014
51,322
41,829
Interest expenses on borrowings
from trust accounts
60,329
78,114
(4) Principal guaranteed trusts and principal and fixed rate of return guaranteed trusts.
1) As of December 31, 2015 and 2014, the carrying value of principal guaranteed trusts and principal and
fixed rate of return guaranteed trusts are as follows (Unit: Korean Won in millions):
December 31, 2015
December 31, 2014
Principal guaranteed trusts
Old-age pension trusts
Personal pension trusts
Pension trusts
Retirement trusts
New personal pension trusts
New old-age pension trusts
Sub-total
Principal and fixed rate of return
guaranteed trusts
Development trusts
Unspecified money trusts
Sub-total
Total
5,235
523,544
681,868
64,921
8,540
3,376
1,287,484
19
782
801
1,288,285
5,619
528,680
640,275
75,847
8,897
3,859
1,263,177
19
857
876
1,264,053
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2) As of December 31, 2015 and 2014, the amounts that the Group has to pay by the capital guaranteed
contract or the operating results of the principal and return guaranteed trusts are as follows (Unit:
Korean Won in millions):
Liabilities for the bank account
(subsidy for trust account adjustment)
26
15
December 31, 2015
December 31, 2014
47. DISPOSAL GROUP HELD FOR SALE AND NET LOSS FROM DISCONTINUED OPERATIONS
(1) Summary
In accordance with Public Funds Oversight Committee‘s plan of the privatization of Woori Finance
Holdings Co., Ltd. on June 26, 2013, the Group reclassified the related assets and liabilities of Woori
Investment & Securities Co., Ltd, Woori Financial Co., Ltd., Woori F&I Co., Ltd., the Woori Asset
Management Co., Ltd., Woori Aviva Life Insurance Co., Ltd. and Woori Savings Bank into a disposal
group held at the sale and presented the related gains or losses as net income (loss) from discontinued
operations as of the end of 2013. For the year ended December 31, 2014, the Group completed the
disposals of aforementioned subsidiaries (see note 49).
(2) Details of discontinued operations are as follows (Unit: Korean Won in millions):
I. Operating income
Net interest income
Interest income
Interest expenses
Net fees and commissions income
Fees and commissions income
Fees and commissions expenses
Dividend income
Net loss on financial instruments at FVTPL
Net loss on AFS financial assets
Impairment losses on credit loss
Other net operating expenses
II. Non-operating loss
Share of profits of joint ventures and associates
Other non-operating expenses
III. Net income before income tax expense
IV. Income tax expense
V. Sub-total
VI. Impairment of assets held-for-sale
VII. Income tax benefits for impairment
VIII. Gain on disposal of assets held-for-sale
IX. Income tax expense for gain on disposal
X. Loss from discontinued operations
For the year ended
December 31, 2014
391,617
(154,388)
152,184
(34,811)
616
(3,736)
17,616
237,229
117,373
24,721
(32,104)
(19,146)
(23,753)
(286,704)
(3,120)
14,496
(117,879)
(103,383)
(7,469)
2,020
113,012
(26,667)
(22,487)
(3) Details of cash flows in discontinued operations are as follows (Unit: Korean Won in millions):
Cash flows from operating activities:
Cash flows from investing activities:
Cash flows from financing activities:
For the year ended
December 31, 2014
326,023
(258,244)
143,289
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(4) For the year ended December 31, 2014, the Group disposed of Woori Investment & Securities Co., Ltd.,
Woori Financial Co., Ltd., Woori F&I Co., Ltd., Woori Asset Management Co., Ltd., Woori Aviva Life
Insurance Co., Ltd. and Woori Savings Bank. The book values of net assets disposed are as follows (Unit:
Korean Won in millions):
As of December 31,
2014
Assets:
Cash and cash equivalents
Financial assets at FVTPL
AFS financial assets
HTM financial assets
Loans and receivables
Investments in joint ventures and associates
Other assets
Total
Liabilities:
Financial liabilities at FVTPL
Deposits due to customers
Borrowings
Debentures
Other financial liabilities
Other liabilities
Total
Net-asset
Non-controlling interests
Gain on disposal of disposal group held-for-sale
Total amount of cash consideration
Cash and cash equivalents of the subsidiaries disposed
Net cash flow due to the disposal of the subsidiaries
560,034
21,838,589
1,588,066
3,032
14,244,435
127,606
774,759
39,136,521
12,767,119
2,011,292
13,346,342
4,031,716
3,169,551
182,109
35,508,129
3,628,392
1,987,786
113,012
1,753,618
(560,034)
1,193,584
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48. DISPOSAL GROUP HELD FOR DISTRIBUTION TO OWNERS AND NET INCOME FROM
DISCONTINUED OPERATIONS
(1) Summary
In accordance with the Public Funds Oversight Committee‘s plan of the privatization of Woori Finance Holdings
Co., Ltd. on June 26, 2013, the Board of Directors of the Woori Finance Holdings Co., Ltd. approved the plan of
demerger of Kyongnam Bank Co., Ltd. and Kwangju Bank Co., Ltd. on August 27, 2013. The demerger was to
take place through distributing of the shares of newly established holding companies, which were receiving the
shares in Kyongnam Bank Co., Ltd. and Kwangju Bank Co., Ltd., to the shareholders of the Woori Finance
Holdings. Therefore, the Group classified the related assets and liabilities of Kyongnam Bank Co., Ltd. and
Kwangju Bank Co., Ltd. into a disposal group held for distribution to owners presented the related gains or
losses as net income (loss) from discontinued operations as of the end of 2013. On May 1, 2014, Kyongnam
Bank and Kwangju Bank were demerged in accordance with the plan (See Note 49).
Details of discontinued operations are as follows (Unit: Korean Won in millions):
For the year
ended December 31, 2014
I. Operating income
Net interest income
Interest income
Interest expenses
Net fees and commissions income
Fees and commissions income
Fees and commissions expenses
Dividend income
Net gain on financial instruments at FVTPL
Net loss on AFS financial assets
Impairment losses on credit loss
Other net operating expenses
683,075
(334,679)
77,030
(23,848)
II. Non-operating loss
Share of profits of joint ventures and associates
Other non-operating expenses
-
(1,342)
III. Net income before income tax expense
IV. Income tax benefit
V.
Income from discontinued operations
108,896
348,396
53,182
13,595
22,119
(5,569)
(81,459)
(241,368)
(1,342)
107,554
576,701
684,255
(2) Details of cash flows in discontinued operations are as follows (Unit: Korean Won in millions):
Cash flows from operating activities:
Cash flows from investing activities:
Cash flows from financing activities:
For the year ended
December 31, 2014
457,097
300,385
(754,823)
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49. PROMOTING PRIVATIZATION PLAN
Pursuant to the privatization plan of Woori Finance Holdings Co., Ltd., which was decided at the Public Fund
Oversight Committee (the ―PFOC‖) on June 26, 2013, the Group has disposed its subsidiaries. Kwangju Bank
and Kyongnam Bank were demerged as of May 1, 2014, and from March 2014 to June 2014, Woori Investment
& Securities Co., Ltd., Woori Aviva Life Insurance Co., Ltd., Woori Savings Bank, Woori Asset Management,
Woori Financial and Woori F&I were disposed in due order.
With respect to the privatization of Woori Bank, on June 23, 2014, the Public Fund Oversight Committee
(―PFOC‖) announced the plan that comprised the merger between Woori Finance Holdings Co., Ltd (―Holding
Company‖) and Woori Bank and the disposal of controlling interests (30% of ownership) and non-controlling
interests (26.97% of ownership), respectively, of Woori Bank after newly listing its shares on the stock exchange.
Pursuant to the plan, the Bank merged with the Holding Company as of November 1, 2014, and completed its
listing on Korea Stock Exchange on November 19, 2014.
On November 28, 2014, KDIC commenced the bidding procedure for the disposal of controlling interests and
non-controlling interests of the Bank. Since only the bidding for the non-controlling interests was successful,
KDIC‘s ownership of the Bank decreased from 56.97% to 51.04%. By the way, as the retirement of treasury
stocks on October 2015, KDIC‘s ownership of the Bank changed to 51.06% as of December 31, 2015.
On July 21, 2015, the PFOC, a deliberative body in charge of privatizing Woori Bank, held a meeting to discuss
means to promote the privatization plan, and announced a plan to take a two-track approach to sell the stake. To
maximize the retrieval of public fund initially invested, promotion of privatization schedule and development of
financial industry, the PFOC is considering a new approach of selling parts out of the government‘s stake to
multiple buyers in smaller portions, as well as its previous plan of selling the controlling stake to a single buyer.
The government has a strong commitment in carrying forward the sale of Woori Bank and will continue to make
utmost effort to privatize Woori Bank as early as possible. The specifics of the plan will be discussed with PFOC
in the future.
In addition, on October 2, 2015, Financial Services Commission (―FSC‖) announced the amendment on
normalization of business MOU, which aimed to promote improvement of corporate value through enhancing
managerial autonomy of the Group. FSC and KDIC intend to take every possible measure to privatize Woori
Bank by taking immediate implementation actions to follow amendment of the MOU, which includes revision of
the Enforcement Decree of the Special Act on the Management of Public Funds.
50. AGREEMENT ON THE IMPLEMENTATION OF A MANAGEMENT PLAN
(1) Since December 30, 2000, the Bank and the KDIC have entered into an agreement to implement
management plans. Under the agreements, the Group is obligated to improve its respective financial ratios,
such as Bank of International Settlements (―BIS‖) capital ratio, general and administrative ratio, non-
performing loan rate. If the Group fails to make improvements, the KDIC can enforce the Group to increase
or decrease its capital, pursue mergers, transfer of loans and deposits, or close or sell parts of its business
operations.
(2) In addition, Since July 2, 2001, in order to establish efficient integrated structure of the Group, the Group
and the KDIC have entered into an agreement to implement management plans, which incorporate
establishment of corporate governance and business management system, improvement of short-term
operational performance, strengthening the Group‘s competitiveness and pursuance of privatization plan,
meeting the financial ratio objectives, and penalties in case the Group does not meet such management
plans.
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51. BUSINESS COMBINATION
The major business combinations have occurred during the year ended at December 31, 2014, are as follows:
(1) Merger between Woori Finance Holdings and the Bank
On November 1, 2014, the Bank (acquirer) merged with Woori Finance Holdings (acquiree) based on the
resolution of the board of directors on July 28, 2014, and the Bank became the existing entity and Woori
Finance Holdings was dissolved. The merger ratio was 1:1.0000000, and the shareholders of Woori
Finance Holdings received one common share of the Bank per one common share of the company as
compensation.
Accordingly, the shares of the Bank, 597 million shares, prior to the merger, was reduced to nil in
accordance with capital reduction procedure, and then, in accordance with the merger ratio, the Bank newly
issued 676 million shares.
Since this merger qualifies as a business combination under common control, the Bank recognized the
transferred assets and liabilities of Woori Finance Holdings at the book values as previously recognized on
the consolidated financial statements, thus no goodwill was newly recognized. As such, there was no
change from the perspective of the consolidated entity.
Details of the merger are described as follows:
Type
Type of merger
Companies involved in merger
Merger
Statutory merger
Woori Bank (existing entity)
Woori Finance Holdings Co., Ltd. (non-existing entity)
New shares acquired due to merger 676,278,371 shares of common stock
Schedule
Date of merger:
Date of registration of merger:
Date for distribution of stocks :
Date for listing of stocks :
November 1, 2014
November 3, 2014
November 18, 2014
November 19, 2014
(2) Acquisition of Saudara Bank
On December 30, 2014, Indonesia Woori Bank, which was a consolidated subsidiary of the Bank, merged
with Saudara Bank in accordance with the resolution of the shareholders‘ meeting on November 7, 2014,
and the bank changed its name into PT Bank Woori Saudara Indonesia 1906 Tbk.
1) Summary of the acquiree
The Group acquired 33% ownership of Saudara Bank, which was a listed company in Indonesia, on
January 28, 2014. Through the merger between Indonesia Woori Bank and Saudara Bank on December 30,
2014, the Group consolidated the bank and the ownership ratio after the merger became 74%. From the
legal perspective, Saudara Bank was deemed as the existing entity; however, the transaction was accounted
using the acquisition method under K-IFRS 1103 Business Combination as it was deemed that Indonesia
Woori Bank was the acquirer from the accounting perspective.
The Group promoted such transaction for enhancing its retail operation in Indonesia.
- 103 -
Woori Bank
Annual Report 2015
190
F i n a n c i a l r e v i e w
2) Merger ratio and distribution of stocks
Entity
Merger ratio
Acquirer
Indonesia Woori Bank
1
Acquiree
Saudara Bank
1,702,921.2
3) Acquisition method (Unit: Korean Won in millions)
I. Consideration
Fair value of the ownership interest held prior to
the acquisition (*1)
Fair value of additional consideration given (*2)
Fair value of non-controlling interest of Woori Indonesia Bank
Total amount of consideration
II. Identifiable assets and liabilities
Cash and Cash equivalents
AFS financial assets
HTM financial assets
Loan and receivables
Property and equipment
Intangible assets
Other assets
Sub-total
Deposits
Borrowings
Debentures
Deferred tax liabilities
Other liabilities
Sub-total
Fair value of identifiable net asset
III. Non-controlling interest of Saudara Bank
IV. Goodwill(*3)
Amount
65,667
38,551
52,609
156,827
81,100
22,074
15,473
639,222
23,882
25,719
34,238
841,708
714,989
12,082
29,425
3,757
12,872
773,125
68,583
17,816
106,060
(*1) 33% ownership interest in Saudara Bank, which was held by the Bank and Indonesia Woori Bank
before the business combination, was remeasured at its fair value as of December 30, 2014. As a result,
the Group recognized loss on disposal of investment in joint ventures and associates, amounted to
1,237 million Won.
(*2) The Bank acquired additional shares of Saudara Bank, 373,954,147 shares, due to the claims for stock
repurchase from the shareholders of the bank who was opposing to the merger.
(*3) Goodwill was recognized on the rationale that the competitiveness of the Group would be reinforced
through the acquisition of local operation network in Indonesia.
4) Expenses related to business combination
The Group recognized the expenses amounting to 1,446 million Won, such as legal fee, which occurred in
conjunction with the business combination as fees and commissions expense on the consolidated statements
of comprehensive income.
- 104 -
Woori Bank
Annual Report 2015
191
Organizational Chart
3 Groups 10 units 11 Divisions 58 Departments
regional Banking headquarters
Branch
customer
domestic Business grouP
gloBal Business grouP
corPoraTe
Banking
BuSineSS
uniT
SMall &
MeDiuM
corPoraTe
Banking
BuSineSS
uniT
inSTiTuTional
Banking
BuSineSS
uniT
real eSTaTe
Finance
BuSineSS
uniT
gloBal
BuSineSS
uniT
inveSTMenT
Banking
BuSineSS
uniT
Financial
MarkeT
BuSineSS
DiviSion
inT’l
TraDe
BuSineSS
DiviSion
corporate
Banking
Products &
Marketing
Dept.
Small & Medium
corporate
Banking Products
& Marketing
Dept.
institutional
Banking Products
& Marketing
Dept.
real estate
Finance
Dept.
Synergy
Promotion
Dept.
card Business
Dept.
international
Banking Dept.
investment
Banking
Dept.
Treasury
Dept.
Public Fund
Sales Dept.
housing Fund
Dept.
Project
Finance Dept.
Trading
Dept.
int’l Trade
Business
Dept.
int’l Trade
Service
center
Settlement
Support Dept.
conSuMer
Banking
BuSineSS
uniT
consumer
Banking
Products &
Marketing
Dept.
channel
Support
Department
customer
center
WealTh
ManageMenT
DiviSion
Wealth
Management
Strategy
Dept.
Wealth
Management
advisory
center
Secretary Dept.
President & chief
executive officer
Board of directors
Woori Bank
Annual Report 2015
192
corPorate Banking headquarters
Business suPPort grouP
SMarT
Banking
BuSineSS
DiviSion
riSk
ManageMenT
uniT
creDiT
SuPPorT
uniT
PenSion
& TruST
BuSineSS
DiviSion
Trust Dept.
retirement
Pension
Business
Dept.
custody
agent
Dept.
nexT genera-
Tion icT SyS-
TeM BuilDing
DiviSion
huMan
reSourceS
DiviSion
oPeraTion
& SuPPorT
DiviSion
cuSToMer
inForMaTion
SecuriTy
DiviSion
corPoraTe
reSTrucTur-
ing
DiviSion
Finance &
ManageMenT
Planning
DiviSion
exTernal
relaTionS
DiviSion
Smart Banking
Business
Dept.
next generation
icT System
Planning
Department
risk
Management
Dept.
human
resources
Dept.
general
affairs Dept.
customer
information
Security Dept.
consumer
Protection
center
loan Policy
Dept.
corporate
restoration
Dept.
Strategy &
control Tower
Dept.
Public
relations
Dept.
FinTech
Business
Dept.
next generation
icT System
Marketing
Department
loan review
Dept.
human
resources
Development
Dept.
loan Service
center
icT Support
center
next generation
icT System
analysis
Department
employee
Satisfaction
center
Deposit
Service center
Security
control Dept.
corporate
restructuring
Dept.
Finance &
Planning Dept.
investor
relations Dept.
accounting
Dept.
Management
Support
Department
retail credit
analysis &
approval
Dept.
SMe credit
analysis &
approval
Dept.
large corporate
credit analysis &
approval
Dept.
credit
Management &
collection
Dept.
Technology
Finance center
comPliance officer
compliance Dept.
Board audit committee
standing audit committee
memBer/director
audit Dept.
Woori Bank
Annual Report 2015
193
Global Network
Head Office
51, Sogong-ro (203, Hoehyeon-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, LA, CA90019, USA
Phone: 1-213-620-0747~8
Fax: 1-213-627-5438
Swift: HVBKUS6L
·
·
·
London Br.
9th Floor, 71 Fenchurch Street, London, EC3M 4BR,UK
Phone: 44-207-680-0680
Fax: 44-207-481-8044
Swift: HVBKGB2L
·
·
·
Tokyo Br.
Shiodome City Center 10th Floor 5-2, Higashi-Shimbashi
1-Chome, Minato-ku, Tokyo, 105-7110, Japan
Phone: 81-3-6891-5600
Fax: 81-3-6891-2457
·
·
Hong Kong Br.
Suite 1401, Two Pacific Place, 88 Queensway, Hongkong
Phone: 85-2-2521-8016
Fax: 85-2-2526-7458
·
·
singapore Br.
10 Marina Boulevard #13-05 MBFC Tower 2, Singapore
018983 Singapore
Phone: 65-6422-2000
Fax: 65-6422-2001
·
·
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.
24F, Keangnam Landmark 72, E6 Pham Hung Road, Tu
Liem District. Hanoi, Vietnam
Phone: 84-4-3831-5281
Fax: 84-4-3831-5271
·
·
dhaka Br.
Suvastu Imam Square (1st & 4th Fl.) 65 Gulshan Avenue,
Dhaka, Bangladesh
Phone: 880-2-881-3270~3
Fax: 880-2-881-3274/3241
·
·
•
DEPZ Customer Service Center
Dhaka Export Processing Zone(Old Area), Ganakbari,
Ssvar, Dhaka-1349, Bangladesh
Phone: 880-2778-8030
Fax: 880-2881-3274/3241
·
·
•
Woori Bank Chittangong Sub-Branch
World Trade Center Chittagon(2nd Floor) Plopt No.
102-103, Agrabad Commercial Area, Chittagong,
Bangladesh
Phone: 880-931-728221~4
Fax: 880-931-728225
·
·
•
Woori Bank Uttara Sub-Branch
Paradise Tower(Ground Floor) Plot 11, Sector 3, Uttara
Model Town,Uttara, Dhaka 1230, Bangladesh
Phone: 880-2896-2125~6
Fax: 880-2896-2129
·
·
•
Woori Bank Mirpur Sub-Branch
Padma Bhaban(First Floor), 1/9 Mirpur Road Pallabi,
Mirpur-12, Dhaka-1216, Bangladesh
Phone: 880-2902-1061~2
Fax: 880-2902-1064
·
·
•
Woori Bank, Narayanganj Sub-Branch
Adamjee Export Processing zone, Shiddhirganj,
Narayanganj-1431 Bangladesh
Phone: 880-2769-2031~34
Fax: 880-2769-2035
·
·
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.
Suite 25.03, Level 25, 363 George Street Sydney NSW
2000 Australia
Phone: 61-2-8222-2200
Fax: 61-2-8222-2299
·
·
Woori Bank dubai Br.
1102A, Level 11, The Gate Building, East Wing, P.O. Box
506760, DIFC, Dubai, United Arab Emirates
Phone: 971-4-325-8365
Fax: 971-4-325-8366
Swift: HVBKAEADXXX
·
·
·
suBsidiarY
u.s.a
Woori america Bank
330 5th Avenue, 3rd Floor, New York, NY 10001, USA
Phone: 1-212-244-3000
Fax: 1-212-736-5929
·
·
Woori america Bank, Manhattan Br.
330 5th Avenue, 1st Floor, New York, NY 10001
Phone: 1-212-244-1500
Fax: 1-212-695-5593
·
·
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 Bank
Annual Report 2015
194
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
Phone: 1-215-782-1100
Fax: 1-215-782-1500
·
·
Woori america Bank, annandale Br.
Seoul Plaza 4231 Markeham St, 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, ellicott city Br.
100352 Baltimore National Pike Ellicott City, MD 21042,
USA
Phone: 1-443-973-3690
Fax: 1-410-461-1002
·
·
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.
3360, West Olympic Blvd. Suite #300, LA, CA90019, 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.,Suite 151Garden Grove, CA
92844, USA
Phone: 1-714-534-6300
Fax: 1-714-534-6301
·
·
Woori america Bank, centreville Br.
13830 Braddock Road. Centreville, VA 20121, USA
Phone: 1-703-988-9555
Fax: 1-703-988-9554
·
·
Woori america Bank, irvine Br.
14252 Culver Dr. #G, Irvine, CA 92604
Phone: 1-949-885-3760
Fax: 1-949-653-0943
·
·
Woori america Bank, Torrance Br.
2390 Crenshaw Boulevard, Units C, Torrance CA 90501
USA
Phone: 1-310-974-1880
Fax: 1-310-782-7004
·
·
Woori america Bank, Georgia LPO
2472 Pleasant Hill Rd. Duluth, GA30096, USA
Phone: 1-404-904-9880
·
cHina
Woori Bank (china) Ltd.
Floor11-12 Block A Building 13 District 4 Wangjing East
Park Chaoyang District Beijing China 100102
Phone: 86-10-8412-3000
Fax: 86-10-8441-7071
·
·
Woori Bank (china) Ltd. chengdu Br.
1F-3F, Ping'an Fortune Center, No.1 Renmin South Road,
Chengdu, Sichuan, 610044 China
Tasikmalaya Branch
Ruko Plaza Asia Blok A5-A6, Jl. HZ. Mustofa No.326 -
Tasikmalaya/46126
Woori Bank (china) Ltd. Head office business
department
Floor1 Block B Building 13 District 4 Wangjing East Park
Chaoyang District Beijing China 100102
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
·
·
Phone: 86-28-6557-2366
Fax: 86-28-6357-2369
·
·
Swift: HVBKCNBJ
·
Woori Bank (china) Ltd. Weihai Br.
No.106-1~3, Attached Qingdao Mid-Road, Weihai,
Shandong Province, China, 264200
Phone: 86-631-599-6000
Fax: 86-31-597-0030
·
·
Woori Bank (china) Ltd. shanghai Br.
Drum Building 1-2F, LJZ -Plaza,1600 Century Avenue,
Pudong New Area, Shanghai, 200122, China
Woori Bank (china) Ltd. Tianjin dongmalu sub-Br.
1-2F, Tower C, Yuding Plaza(Qixiang Street), Dongma
Road, Nankai District, Tianjin, 300090, China
Phone: 86-21-5081-0707
Fax: 86-21-5081-2484
·
·
Phone: 86-22-8776-9000
Fax: 86-22-8776-9901~2
·
·
Woori Bank (china) Ltd. shenzhen Br.
B0105, B0210 Rongchao Landmark, 4028 Jintian Road,
Futian District, Shenzhen, 518035 China
Woori Bank (china) Ltd. chongqing Br.
Unitl, Floor L2-1, Ping An Fortune Center, No.25-2, West
Main Street, Jiangbei District, Chongqing 400023, China
Phone: 86-755-3338-1234
Fax: 86-755-3338-7227
·
·
Phone: 86-23-6152-2222
Fax: 86-23-6152-2220
·
·
Phone: 62-265-2351906
Fax: 62-265-2352206
·
·
Yogyakarta Branch
Jl. Mangkubumi No.45 - Yogyakarta/55232
Phone: 62-274-549280
Fax: 62-274-549285
·
·
denpasar Branch
0361-223099 Ruko Griya Alamanda blok 3-4, Jl. Cok
Agung Tresna Renon-Denpasar/80235
Phone: 62-361-263755
Fax: 62-361-223099
·
·
The Gedung energy Branch
Gd The Energy Lot 11 A SCBD, Jl. Jendral Sudirman Kav
52 - 53, Jakarta/12190
Phone: 62-21-29951906
Fax: 62-21-29951904
·
·
ampera Branch
Jl. Ampera Raya No.20 Gd.Medco III/12560
Woori Bank (china) Ltd. suzhou Br.
101B, Sovereign Building, #8 Suhua Road Suzhou
Industrial Park, Jiangsu, 215021 China
Wooribank (china) Ltd. shanghai Lianyang sub-Br.
No.52, Zendai Thumb Plaza lane 199, FangDian Road,
Pudong New District, Shanghai, 200135 China
Phone: 62-21-7821756
Fax: 62-21-7821642
·
·
Phone: 86-512-6295-0777
Fax: 86-512-6295-2141
·
·
Phone: 86-21-6882-0608
Fax: 86-21-6882-8821
·
·
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, 1F Maxdo center No.8 Xingyi Rd. Changning
District Shanghai, 200336, China
Phone: 86-21-5208-1000
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 District,
Shanghai, 201103 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, 518040 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, Beijing 101300, China
Phone: 86-10-8945-2220
Fax: 86-10-8949-3560
·
·
Woori Bank (china) Ltd. daLian Br.
2F-218 YOMA IFC, No.128 Jinma Road, Dalian
Development Area, Dalian, 116600, China
Phone: 86-411-8765-8000
Fax: 86-411-8765-8515
·
·
Woori Bank (china) Ltd. Zhangjiagang sub-Br.
B104/B205 Huachang Oriental Plaza, 11 Renmin East
Road, Zhangjiagang, Jiangsu 215600, China
Phone: 86-512-5636-6696
Fax: 86-512-5636-6697
·
·
Wooribank (china) Ltd. Beijing sanyuanqiao sub-Br.
1F-05, 2F-09, Tower A, Tianyuangang Center, C2, North
Road, East Third Ring Road, Chaoyang District, Beijing
100027. China
Phone: 86-10-8440-7177
Fax: 86-10-8441-7761/7790
·
·
indOnesia (saudara)
BankWoorisaudara Head Office
Jl. Diponegoro No.28 Bandung/40115
Phone: 62-22-87831900/87831906
Fax: 62-22-87831918
·
·
coperate Branch
Gd. BEJ Tower 1 Lt. 16 Jl. Jend.Sudirman Kav. 52-53
Jakarta/12190
Phone: 62-21-5151919
Fax: 62-21-5151477
·
·
Wastukancana Branch
Jl. Wastukancana No.79 - Bandung/40116
Phone: 62-22-4209940
Fax: 62-22-4209941
·
·
cirebon Branch
Jl. DR. Wahidin No.51 - Cirebon/45122
Phone: 62-231-242006
Fax: 62-231-242066
·
·
Bogor Branch
Jl. Pangkalan Raya No.8, Warung Jambu - Bogor/16151
Phone: 62-251-8377887
Fax: 62-251-8377209
·
·
surapati core Branch
Jl. PHH. Mustofa No.39, Surapati Core Blok
F1 - Bandung/40192
Phone: 62-22-87241326
Fax: 62-22-87241327
·
·
surabaya Branch
Kompleks Ruko 21, Jl. Raya, Gubeng No.68
E - Surabaya/60281
Phone: 62-31-5041906
Fax: 62-31-5047727
·
·
semarang Branch
Imam Bonjol Square Kav 4,Jl. Imam Bonjol
No.176 - Tasikmalaya/50132
Phone: 62-24-3521906
Fax: 62-24-3521900
·
·
Woori Bank
Annual Report 2015
195
Purwokerto Branch
Jl. Jenderal gatot Subroto No.78 Purwokerto - Jawa
Tengah/53116
Phone: 62-281-622212
Fax: 62-281-631616
·
·
Malang Branch
Jl. Letjen Sutoyo No.27 Malang- Jawa Timur/56141
Phone: 62-341-421906/7601906
Fax: 62-341-408188
·
·
solo Branch
Jl. Ronggo Warsito No. 53 Kota, Solo - Jawa
Tengah/57131
Phone: 62-271-633600
Fax: 62-271-633433
·
·
Tangerang Branch
Tangerang City Business Park Blok F/50 Jl. Jend.
Sudirman No.1 Tangerang/15118
Phone: 62-21-29529226
Fax: 62-21-29529227
·
·
Pelembang Branch
Jl. Basuki Rahmat No.886 A - Palembang/30127
Phone: 62-711-315828
Fax: 62-711-315510
·
·
sukabumi Branch
Jl. Jenderal Sudirman No.31-Sukabumi/43111
Phone: 62-266-6251906
Fax: 62-266-6249717
·
·
Pekalongan Branch
Jl. KH. Mansyur No.64, Perkalongan
Phone: 62-285-4460505
Fax: 62-285-4460506
·
·
Madiun Branch
Jl. Diponegoro No.110, Madiun
Phone: 62-351-4773000
Fax: 62-351-4773003
·
·
Buah Batu sub-Branch
Jl. Buah Batu No.58 Bandung/40265
Phone: 62-22-7322150
Fax: 62-22-7319626
·
·
Kopo Mas sub-Branch
Komp Ruko Mas J-9 Jl. Kopo Cirangrang/40225
Phone: 62-22-5436802
Fax: 62-22-5436803
·
·
cimahi sub-Branch
Jl. Raya Cibabat No.310 Cimahi/40213
Phone: 62-22-6634656
Fax: 62-22-6634657
·
·
sukajadi sub-Branch
Jl. Sukajadi No.248/40153
Phone: 62-22-2042248
Fax: 62-22-2041213
·
·
soekarno Hatta sub-Branch
Jl. Soekarno Hatta No.618 F/40286
Phone: 62-22-7509905
Fax: 62-22-7509902
·
·
Pemuda sub-Branch
Ruko Graha Mas Blok AA No.3 Taman Berdikari Sentosa
Jl.Pemuda/13220
Phone: 62-21-47862070
Fax: 62-21-4711298
·
·
subang sub-Branch
JL. Ahmad Yani No.36/41211
Phone: 62-260-421014
Fax: 62-260-421015
·
·
sumedang sub-Branch
Jl. Prabu Geusan Ulun No.76/45311
Phone: 62-261-206527
Fax: 62-261-206528
·
·
Tangerang sub-Branch
Ruko Pinangsia Blok H No.1 Lippo Karawaci Kel. Cibodas
Tangerang/15139
Phone: 62-21-55772345
Fax: 62-21-5577636
·
·
serang sub-Branch
Jl. KH. Abdul fatah Hasan No.53 Kel. Cipare Serang/42124
Phone: 62-254-224142
Fax: 62-254-224243
·
·
cikarang sub-Branch
Cikarang Commercial Centre Blok A1-2, Jl. Cibarusah KM.
40 No.2 Kampung pasir sari kec. Cikarang Selatan/17550
Phone: 62-21-89835720
Fax: 62-21-89835721
·
·
cibubur sub-Branch
Cibubur Times Square Blok B1/1 Jl. Alternatif Cibubur KM
3 Kel. Jatiraya, Kec. Jastisampurna Bekasi/17435
Phone: 62-21-84305050
Fax: 62-21-84305353
·
·
Purwakarta sub-Branch
Jl. Basuki Rahmat No.94, Purwakarta/41114
Phone: 62-264-8227474
Fax: 62-264-8227475
·
·
cikampek sub-Branch
Jl. Terusan Sudirman No.6B(Sudirman Center)/41373
Phone: 62-264-8385171,72
Fax: 62-264-8385088
·
·
depok sub-Branch
Jl. Margonda Raya No.1 Rt 001/011 Kelurahan Depok
Kecamatan Pancoran Mas/16431
Phone: 62-21-7522091
Fax: 62-21-7522092
·
·
salatiga sub-Branch
Ruko Wijaya Square B5 Jl.Diponegoro No.110
Salatiga/50711
Phone: 62-298-311828
Fax: 62-298-312808
·
·
sidoarjo sub-Branch
Jl. KH. Mukmin No.11 Blok B-7 Sidoarjo/60281
Phone: 62-31-8922842
Fax: 62-31-8922841
·
·
Mojokerto sub-Branch
Jl. Gajah Mada No.85B/60319
Phone: 62-321-383444
Fax: 62-321-383465
·
·
cianjur sub-Branch
Jl. Abdulah Bin Nuh No.15/43253
Phone: 62-263-260941, 260943, 260945
Fax: 62-263-280712
·
·
atrium sub-Branch
Jl. KH. Hasyim ashari No.49 Cideng/10410
Pamulang sub-Branch
Jl. Dr. Setiabudi No.71 Kav. 6 Pamulang Timur/15417
Phone: 62-21-7403205, 7443335
Fax: 62-21-7402330
·
·
sumber sub-Branch
Jl. Dewi Sartika No.57 Sumber/45611
Phone: 62-231-8330618
Fax: 62-231-8330619
·
·
Bantul sub-Branch
Jl. Jenderal Sudirman No.130 Kabupaten Bantul/55713
Phone: 62-274-367514
Fax: 62-274-368787
·
·
Balaraja sub-Branch
Komplek Ruko Balaraja Center Blok A No.2 Jl. Raya
Serang Km. 24 Talaga Sari Balaraja-tangerang/15610
Phone: 62-21-29015618
Fax: 62-21-29015474
·
·
ciledug sub-Branch
Ruko Dian Plaza Jl. Raden Fatah No.8A Kelurahan
Sudirman Selatan,Ciledug/15225
Phone: 62-21-7330545
Fax: 62-21-7330706
·
·
Phone: 62-21-3451964
Fax: 62-21-3451954
·
·
Kebon Jeruk sub-Branch
Jl. Kelapa Dua Raya(RayaPanjang) No.2, Rt 008, Rw 002
Kel. Kelapa Dua Kec. Kebon Jeruk/12130
Phone: 62-21-53660160
Fax: 62-21-53660164
·
·
diponegoro sub-Branch
Jl. Diponegoro No.28 Bandung/40251
Phone: 62-22-87831928/87831909
Fax: 62-22-87831919
·
·
Lembang sub-Branch
Jl. Grand Hotel Lembang No.25 Bandung/40391
Phone: 62-22-2784797
Fax: 62-22-2784975
·
·
cikarang sub-Branch
Ruko Metro Boulevard Kav. A Jl. Niaga Raya No.10
Kawasan Industri Jabeka/17835
Phone: 62-21-89836020/021-89837020
Fax: 62-21-89835953
·
·
Majalengka sub-Branch
Jl. KH. Abdul Halim No.447 Majalengka/45411
Phone: 62-233-8285460
Fax: 62-233-8285459
·
·
Kuningan sub-Branch
Jl. Dewi Sartika No.4/45512
Phone: 62-232-8880938
Fax: 62-232-8880939
·
·
indramayu sub-Branch
Jl. DI. Panjaitan No.103/45212
Phone: 62-234-276236
Fax: 62-234-276237
·
·
Magelang sub-Branch
Ruko Metro Square Blok F No.25/56172
Phone: 62-293-326498-99
Fax: 62-293-326356
·
·
Padalarang sub-Branch
Jl. Raya Padalarang No.463 H/40553
Phone: 62-22-6803940/41
Fax: 62-22-6803935
·
·
Patrol sub-Branch
Jl. Raya Patrol Anjatan Blok Bunder No.52/45256
Phone: 62-234-5613627
Fax: 62-234-611919
·
·
Gianyar sub-Branch
Jl. By.Pass Dharma Giri No.99/80511
Phone: 62-361-8958295
Fax: 62-361-8958194
·
·
Gresik sub-Branch
Ruko KIG Jl. Tri Dharma Kav. A-14/61117
Phone: 62-31-3981758
Fax: 62-31-3981720
·
·
Karawang sub-Branch
Jl. Tuparev No.499 (Johar) Kab. Karawang
Phone: 62-267-8454873-74
Fax: 62-267-8454875
·
·
cibinong sub-Branch
Jl. Raya Mayor Oking No.158 V/16918
Phone: 62-21-87904397
Fax: 62-21-87904443
·
·
singaparna sub-Branch
Jl. Raya Timur No.45 Singaparna/46416
Phone: 62-265-543111-3
Fax: 62-265-545074
·
·
ciamis sub-Branch
Jl. Letjen. Samuji Ruko No.35/46211
Phone: 62-265-772221
Fax: 62-265-777860
·
·
sleman sub-Branch
Jl. Magelang KM 12.8 No.200/55514
Phone: 62-274-865922
Fax: 62-274-866168
·
·
Losari sub-Branch
Jl. Soekarno Hatta NO.77 Losari/45192
Phone: 62-231-8832738-39
Fax: 62-231-8832736
·
·
Bekasi sub-Branch
Jl. Raya Narogong KM 12.5 No.23A/17151
Phone: 62-21-82611045-46
Fax: 62-21-82605356
·
·
Kudus sub-Branch
Jl. Sunan Kudus No.5 a/509000
Phone: 62-291-4249241
Fax: 62-291-4246497
·
·
Pamanukan sub-Branch
Jl. Eyang Tirtapraja No.54 Kab. Subang/41254
Phone: 62-260-551773
Fax: 62-260-551774
·
·
Gunung sabeulah sub-Branch
JL. Gunung Sabeulah Kel.Tawangsari Kec. Tawang kota
Tasikmalaya/46112
Majalaya sub-Branch
Jl. Alun-alun utara/Jl. Tengah komp ruko permata majalaya
Blok C6/40382
Phone: 62-265-326147
Fax: 62-265-331135
·
·
Garut sub-Branch
Jl. Ahmad Yani No.33/44117
Phone: 62-262-544672
Fax: 62-262-544670
·
·
Phone: 62-22-85963799
Fax: 62-22-5959826
·
·
Pangalengan sub-Branch
Jl. Raya Pintu Pangalengan KM-1/40378
Phone: 62-22-5979222
Fax: 62-22-5978690
·
·
Woori Bank
Annual Report 2015
196
Boyolali sub-Branch
Jl. Pandanaran No.179 B Kab.Boyolali/57313
Kawali sub-Branch
Jl. Siliwangi No.262, Desa Kawali mukti
cilegon sub-Branch
Jl. Jend. A. yani Komp Cilegon green megablok Blok D3
No.17 Cibeber - cilegon/42433
Phone: 62-254-8484772
Fax: 62-254-8484773
·
·
rangkasbitung sub-Branch
Jl. Raden Hardiwinangun Blok A No.9/42314
Phone: 62-252-203612
Fax: 62-252-203613
·
·
Tabanan sub-Branch
Jl. Ngurah Rai No.73 Kediri/82121
Phone: 62-361-814160
Fax: 62-361-814281
·
·
surabaya Barat sub-Branch
Surya inti permata II Blok C-6 Jl. HR Muhammad No.175
Surabaya/60266
Phone: 62-31-7381606
Fax: 62-31-7387007
·
·
soreang raya sub-Branch
Jl. Raya Soreang No.412/40900
Phone: 62-22-5896880
Fax: 62-22-5897444
·
·
ujung Berung sub-Branch
Komp Ruko Bandung Timur Plaza No. RA Jl. A.H.
Nasution Kav. 46A Ujung Berung/40612
Phone: 62-22-7834128
Fax: 62-22-7834153
·
·
Jemur sari/surabaya selatan sub-Branch
Jl. Raya Jemursari No.15C Surabaya/60237
Phone: 62-31-8480454
Fax: 62-31-8480483
·
·
Phone: 62-276-323655
Fax: 62-276-323650
·
·
Martadinata sub-Branch
Jl. RE Martadinata Pav 123 Bandung/40114
Phone: 62-22-71070901
Fax: 62-22-7107091
·
·
Melawai/radio dalam sub-Branch
JL. Radio dalam raya No.4 Kel. Gandaria Utara Kec.
Kebayoran baru Jakarta selatan/12160
Phone: 62-21-7211005
Fax: 62-21-7210970
·
·
singaraja sub-Branch
Jl. Ngurah Rai No.16 Singaraja Kelurahan Kendran
Kecamatan Buleleng/81112
Phone: 62-362-25098
Fax: 62-362-26605
·
·
Manonjaya sub-Branch
Jl. RTA. Prawira Adiningrat No.214 A Desa Manonjaya
kec. Manonjaya-Tasikmalaya
Phone: 62-265-380510
Fax: 62-265-380356
·
·
surabaya utara sub-Branch
Jl. Kertajaya Indah No.9/F-105 Surabaya/60161
Phone: 62-31-3572064
Fax: 62-31-3537005
·
·
Batu sub-Branch
Jl. Brantas No.49 Batu-Malang/65314
Phone: 62-341-513709
Fax: 62-341-513712
·
·
Luragung sub-Branch
Jl. Siliwangi No.18 Kec Luragung, Kab Kuningan/45581
Palimanan sub-Branch
Jl. Otto Iskandardinata No.503 Palimanan
Phone: 62-232-870016
Fax: 62-232-870020
·
·
Phone: 62-231-343950
Fax: 62-231-343955
·
·
Pangandaran sub-Branch
Jl. Parapat, Desa Pangandaran, kec pangandaran kab
ciamis/46396
Pelabuhan ratu sub-Branch
Jl. Surya Kencana No.198 Cibadak - Kabupaten
Sukabumi/43364
Phone: 62-265-630400, 630010
Fax: 62-265-630800
·
·
Phone: 62-266-6441906
Fax: 62-266-435511
·
·
Purwodadi sub-Branch
Jl. Letjend. S. Parman No.13 Kel. Purwodadi Kec.
Purwodadi Jawa Tengah/58111
Bekasi sub-Branch
Annex Building Lt. 1 Jl. Afrika No.2 Krakatau Posco
Cilegon/42435
Phone: 62-292-423399
Fax: 62-292-423799
·
·
Leuwi Liang sub-Branch
Jl. Raya Jasinga 11A Kel. Cibeber, Kec. Leuwiliang Kab
Bogor/16640
Phone: 62-251-8640297
Fax: 62-251-8640299
·
·
ciawi sub-Branch
Jl. Perjuangan No.80 Kp.Karanganyar Rt. 04 Rw. 05 Desa
Pakemitan Kec Ciawi Kab. Tasikmalaya/46156
Phone: 62-265-455163, 455167
Fax: 62-265-455162
·
·
cilacap sub-Branch
Jl. Jend. A Yani No.46 Cilacap/53212
Phone: 62-282-537929
Fax: 62-282-535522
·
·
Jombang sub-Branch
Jl. KH. Wahid Hasyim No.71 Kota Jombang-Jawa
Timur/61411
Phone: 62-321-878906, 872906
Fax: 62-321-860904
·
·
Banjar sub-Branch
Jl. Letjen Soewarto No.92/46321
Phone: 62-265-740557
Fax: 62-265-740558
·
·
Phone: 62-21-82404282
Fax: 62-21-82401878
·
·
Wates sub-Branch
Jl. Kolonel Sugiyono No.3-Wates
Phone: 62-274-6657325
Fax: 62-274-774338
·
·
Tanjung Priok sub-Branch
Jl. Enggano No.58 C- Tanjung Priok jakarta Utara/14310
Phone: 62-21-4361667
Fax: 62-21-4361668
·
·
Karangnunggal sub-Branch
Jl. Raya Karangnunggal KP. Karangmekar RT/RW 03/09
Desa Hegarwangi Kec. Bantarkalong Kab.
Phone: 62-265-258471~2
Fax: 62-265-2584570
·
·
cibatu sub-Branch
Jalan Raya Cibatu - Limbangan Ruko Perum Bunar
Indah Blok C-29 No.15-17 Rt 06 Rw 04 Desa Cibunar
Kecamatan Cibatu Kabupaten Garut
Phone: 62-262-467708
Fax: 62-262-467707
·
·
Wonogiri sub-Branch
Jalan Ahmad Yani No.66, Wonogiri
Phone: 62-271-633600
Fax: 62-271-633433
·
·
Woori Bank
Annual Report 2015
197
Phone: 62-265-791560
Fax: 62-265-791580
·
·
Kepanjen sub-Branch
Jl. Kawi Ruko B 7, Kepanjen
Phone: 62-34-1379840
Fax: 62-34-1379839
·
·
Pamekasan sub-Branch
Jl. Kabupaten No.114
Phone: 62-324-333905, 333906
Fax: 62-324-333604
·
·
Kebumen sub-Branch
Jl. Ahmad Yani No.20, Kubumen
Phone: 62-281-6222212
Fax: 62-281-631616
·
·
Mangga dua sub-Branch
Ruko Harco Mangga Dua Blok L. No.5
Phone: 62-21-6120176
Fax: 62-21-6120179
·
·
Kelapa Gading sub-Branch
Jl. Boulevard Barat Ruko MOI Blok I No.15
Phone: 62-21-29364053
Fax: 62-21-29364054
·
·
dalem Kaum cash-Office
Jl. Dalem Kaum No.5 Bandung/40251
Phone: 62-22-4211906
Fax: 62-22-4206837
·
·
Batujajar cash-Office
Jl. Batujajar No.324 Bandung
Phone: 62-22-86861018/17/15
Fax: 62-22-86861016
·
·
cimahi cash-Office
Cijerah II blok V No.3 Cimahi
Phone: 62-22-86065156
Fax: 62-22-6075579
·
·
suci cash-Office
Jl. PHH. Mustofa No.35/40124
Phone: 62-22-7279740
Fax: 62-22-7276361
·
·
Jatinangor cash-Office
Jl. Raya Jatinangor KM 20.5 KKBI IKOPIN/45363
Phone: 62-22-7781587
Fax: 62-22-7781563
·
·
darmaraja cash-Office
Jl. Raya Darmaraja No.253 desa Darmaraja, Kec
Darmaraja Kab.Sumedang/45372
Phone: 62-262-429000, 429069, 428478
Fax: 62-262-429070
·
·
daan Mogot cash-Office
Jl. Tampak Sirling No.12 Daan Mogot/11460
Phone: 62-21-56944307
Fax: 62-21-56944307
·
·
fatmawati cash-Office
Jl. Kesehatan Raya No.18B Rt 003 Rw 006 Kel Bintaro
Kec. Sanggrahan Jakarta selatan/12430
Phone: 62-21-7374693
Fax: 62-21-7374408
·
·
cililitan asabri cash-Office
Jl. Mayjen Sutoyo No.11 Gedung PT Asabri (persero) Jl.
Cililitan - jakarta Timur/13630
Phone: 62-21-80876494
Fax: 62-21-80876381
·
·
Bekasi cash-Office
Jl. Ir. H. Juanda No.111 Bekasi
Phone: 62-21-88353901
Fax: 62-21-88345693
·
·
Jatibarang cash-Office
Jl. Letnan Joni No.178 Kec. Jatibarang - Kab
Indramayu/45273
Phone: 62-234-352911
Fax: 62-234-352910
·
·
Taman Topi cash-Office
Jl. Gedong Sawah I No.1 A Pabaton Bogor/16121
Phone: 62-251-8335714
Fax: 62-251-8335721
·
·
Juanda/ KK Tajur cash-Office
Jl. Raya Tajur Ruko Galaxy No.59 H Bogo
Phone: 62-251-7559203, 8384254
Fax: 62-251-7559205
·
·
Kendal cash-Office
Jl. Raya Utama No.9 weleri kenda
Phone: 62-294-644704
Fax: 62-294-644708
·
·
ungaran cash-Office
Ruko permata hijau No.1 Jl. MT Haryono No.16 Kel
Ungaran Kec Ungaran Barat Kab. Semarang/50511
Phone: 62-24-76911017
Fax: 62-24-76911001
·
·
serang cash-Office
Jl. Raya Serang- pandeglang KM 11 Lingkungan waru Lor,
Desa/kel. Kamanisa Kec Curug Kota serang/42117
Phone: 62-254-222133
Fax: 62-254-8494615
·
·
cilegon cash-Office
Annex Building Lt. 1 Jl. Afrika No.2 Krakatau Posco
Cilegon/42435
Phone: 62-254-369755
Fax: 62-254-369759
·
·
ruko union cash-Office
Ruko Union Square Blok A No.6 Lippo Cikarang, Cikarang
Selatan
Phone: 62-21-89909797
Fax: 62-21-89903007
·
·
sadang cash-Office
Sadang Terminal Square No.07, 08, 25 Jl. Raya Sadang
Purwakarta/41181
Phone: 62-264-8220180
Fax: 62-264-8220181
·
·
cilimus cash-Office
Jalan Raya Cilimus RT 017/04, Desa Cilimus Kecamatan
Cilimus, Kabupaten Kuningan
Phone: 62-232-615411
Fax: 62-232-615412
·
·
Purbalingga functional Office
Jl. Ahmad Yani No.42 Purbalingga
Phone: 62-81-89553
Fax: 62-81-892034
·
·
sragen functional Office
Jl. Sukowati No.156 Sragen
Phone: 62-71-895015
Fax: 62-71-895013
·
·
cikajang functional Office
Jl. Raya Cikajang No.80 Garut
Phone: 62-62-576094
Fax: 62-62-576089
·
·
Wonosari functional Office
Jl. KH. Agus Salim No.71A Wonosari - Kab Gunungkidul
Phone: 62-74-3950673
Fax: 62-74-3950673
·
·
dalem Kaum functional Office
JL. Dalem Kaum No.5 Bandung
Phone: 62-33-4233810
Fax: 62-22-4206837
·
·
HOnG KOnG
MYanMar
Woori Global Market asia Limited
Rooms 1905-1908, 19/F, Gloucester Tower, The
Landmark, 15 Queen's Road Central, Hong Kong
Woori finance Myanmar Plc.
115/A, Pyay Road, Saw Bwar Gyee Kone Ward(10 miles),
Insein Township Yangon, Myanmar
Phone: 852-3763-0888
Fax: 852-3763-0808
·
·
russia
Phone: 95-01-643798
·
Overseas Office
Zao Woori Bank
8th floor, Lotte Plaza, 8, Novinsky Boulevard, Moscow,
121099, Russia
MaLaYsia
Woori Bank Kuala Lumpur representative Office
Unit 4129/4130, 41/F, Vista Tower, The Intermark 182
Jalan Tun Razak, Kuala Lumpur 50400, Malaysia
Phone: 60-3-2163-8288
Fax: 60-3-2163-9288
·
·
MYanMar
Woori Bank Yangon, Myanmar Office
No.115(A) First Floor), Pyay Road, 10 Miles, Insein
Township, Yangon, Myanmar
Phone: 95-01-646951
·
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
·
·
•
Zao Woori Bank vladivostok Representative Office
Vladivostok Business-Center Office No.614,
29, Semenovskaya Str. Vladivostok, 690091, Russia
Phone: 7-423-240-7014
Fax: 7-423-240-7015
·
·
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
·
·
caMBOdia
Woori finance cambodia Plc.
Building No.119B, Street271, Sangkat Phsar Doem Thkov
Khan Chamkarmon, Phnom Penh.
Phone: 855-23-999-661
Fax: 855-23-999-663
·
·
•
Russey Keo Branch
House No.1A, National Road 5, Sangkat Kilomet Lek6
Khan Russey Keo, Phnom Penh.
Phone: 855-23-999-664
·
•
Pursenchey Branch
House No.6A, Russian Blvd, Tangoun Village, Sangkat
Kakb, Khan Pursenchey, Phnom Penh.
Phone: 855-23-999-803
·
•
Kean svay Branch
House No.330, National Road 1, Toul Tuaut village,
Korkey Communce, kean Svay district, Kandal province
Phone: 855-23-720-632
·
•
Takhmao Branch
Building No.31, Street2, Takhmao village, Takhmao
Commune, Takhmao District, Kandal Province,
Cambodia
Phone: 855-24-998-333
·
•
PrekPhnov Branch
National highway 5, Kandal Village, Prek Phnov
commune, Phnom Penh, Cambodia
Phone: 855-23-900-945
·
•
Ang Snoul Branch
#109, National road No.4, Village Bek Chan,
CommuneBek Chan, District Ang Snuol, Cambodia
Phone: 855-023-999-355
·
•
Phsar Depo Branch
#138D, St 215, Sangkat Veal Vong, Khan Prumpei
Makara, Phnom Penh, Cambodia
Phone: 855-23-900-455
·
Woori Bank
Annual Report 2015
198
Contact Information
Directed by
Kim, Eun Kyung(Christine)
Woori Bank Investor Relations Dept.
Tel: 82-2-2002-3186
ekk@wooribank.com
Created by
Lee, Eun Hwoa
Lucre Inc.
Tel: 82-2-542-6725
www.lucrebeyond.com
Photo by
Han, Ze Hun
ROUND TABLE
Tel: 82-2-3288-6005
www.roundtableic.com