2017 y ar_en

Hyundai Card Co., Ltd. and
Subsidiaries
Consolidated Financial Statements
December 31, 2017

Hyundai Card Co., Ltd. and Subsidiaries
Index
December 31, 2017 and 2016
Page(s)
Independent Auditor’s Report .............................................................................. 1 - 2
Consolidated Financial Statements
Consolidated Statements of Financial Position ........................................................ 3 - 4
Consolidated Statements of Comprehensive Income................................................ 5
Consolidated Statements of Changes in Equity......................................................... 6
Consolidated Statements of Cash Flows................................................................... 7
Notes to the Consolidated Financial Statements ................................................ 8 - 89

Independent Auditor’s Report
(English Translation of a Report Originally Issued in Korean)
To the Board of Directors and Shareholders of
Hyundai Card Co., Ltd.
We have audited the accompanying consolidated financial statements of Hyundai Card Co., Ltd. and its
subsidiaries (collectively referred to as the "Group") which comprise the consolidated statement of
financial position as at December 31, 2017, and the consolidated statement of comprehensive income,
consolidated statement of changes in equity and consolidated statement of cash flows for the year then
ended, and notes to the consolidated financial statements, including a summary of significant accounting
policies and other explanatory information.
Management’s Responsibilities for the Financial Statements
Management is responsible for the preparation and fair presentation of the consolidated financial
statements in accordance with International Financial Reporting Standards as adopted by the Republic of
Korea (Korean IFRS), and for such internal control as management determines is necessary to enable
the preparation of financial statements that are free from material misstatement, whether due to fraud or
error.
Auditor’s Responsibilities
Our responsibility is to express an opinion on the consolidated financial statements based on our audit.
We conducted our audit in accordance with Korean Standards on Auditing. Those standards require that
we comply with ethical requirements, and plan and perform the audit to obtain reasonable assurance
about whether the consolidated financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in
the consolidated financial statements. The procedures selected depend on the auditor's judgment,
including the assessment of the risks of material misstatement of the consolidated 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 consolidated 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 significant
accounting estimates made by management, as well as evaluating the overall presentation of the
consolidated financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
our audit opinion.

2
Opinion
In our opinion, the accompanying consolidated financial statements present fairly, in all material respects,
the consolidated financial position of Hyundai Card Co., Ltd. and its subsidiaries as at December 31,
2017, and its consolidated financial performance and its consolidated cash flows for the year then ended
in accordance with Korean IFRS.
Other Matters
The consolidated financial statements of the Group for the year ended December 31, 2016, were audited
by Deloitte Anjin LLC who expressed an unqualified opinion on those statements on March 9, 2017.
Auditing standards and their application in practice vary among countries. The procedures and practices
used in the Republic of Korea to audit such financial statements may differ from those generally accepted
and applied in other countries.
Seoul, Korea
March 7, 2018
This report is effective as of March 7, 2018, the audit report date. Certain subsequent events or
circumstances, which may occur between the audit report date and the time of reading this report,
could have a material impact on the accompanying consolidated financial statements and notes
thereto. Accordingly, the readers of the review report should understand that there is a possibility
that the above review report may have to be revised to reflect the impact of such subsequent events
or circumstances, if any.

Consolidated Statements of Financial Position
(in Korean won) Notes
Assets
Cash and deposits 5,29,30,31,35
Cash and cash equivalents ￦ 654,412,163,620 ￦ 544,794,485,545
Deposits 50,524,500,000 49,224,500,000
704,936,663,620 594,018,985,545
Securities 6,29,30,31
Short-term trading financial assets 993,465,595,038 934,410,761,140
Available-for-sale financial assets 1,766,969,764 1,766,969,764
995,232,564,802 936,177,730,904
Card assets 7,8,29,30,31,34
Card receivables 8,721,173,547,767 8,269,534,732,550
Provision for impairment (84,338,059,074) (85,886,699,270)
Cash advances 847,331,862,963 854,784,203,966
Card loans 3,486,474,567,478 3,219,317,692,667
12,757,825,137,234 12,059,898,736,615
Property and equipment 9,34
Land 141,135,593,407 141,135,593,407
Buildings 153,112,422,428 126,704,995,407
Accumulated depreciation (18,378,711,180) (14,726,748,872)
Vehicles 2,514,088,391 2,514,088,391
Accumulated depreciation (624,373,518) (439,366,875)
Fixtures and equipment 220,299,985,094 224,364,093,027
Accumulated depreciation (143,375,835,685) (151,356,926,811)
Construction in progress 672,620,703 35,075,731,257
355,355,789,640 363,271,458,931
Other assets
Other receivables 29,30 84,796,316,310 71,147,336,413
Provision for impairment 8 (458,287,634) (684,795,942)
Accrued revenue 29,30 50,969,812,148 48,787,858,968
Provision for impairment 8 (1,500,441,477) (1,452,647,490)
Advance payments 30,246,334,975 34,568,010,198
Provision for impairment 8 (216,102,073) (1,299,169,542)
Prepaid expenses 120,245,563,892 99,535,753,224
Intangible assets 10,34 124,100,132,534 124,686,171,662
Derivative assets 16,29,30,31,33 10,002,954,866 81,927,179,715
Deferred tax assets 27 145,821,706,670 145,455,115,389
Guarantee deposits provided 29,30 33,703,463,766 34,099,670,256
Others 5,435,182,572 6,849,544,062
603,146,636,549 643,620,026,913
Total assets ￦ 15,416,496,791,845 ￦ 14,596,986,938,908
20162017
3

Consolidated Statements of Financial Position
(in Korean won)
Liabilities
Borrowings
Borrowings 11,29,30,31 ￦ 2,535,000,000,000 ￦ 1,515,000,000,000
Debentures 12,29,30,31 7,610,236,853,058 8,432,870,774,644
10,145,236,853,058 9,947,870,774,644
Other liabilities
Other payables 29,30,31,34 1,385,784,959,853 1,141,620,489,429
Accrued expenses 29,30,31 220,571,277,243 230,145,349,425
Unearned revenue 14 346,812,832,289 333,051,158,594
Withholdings 29,30,31 186,341,825,335 83,120,821,122
Derivative liabilities 16,29,30,31,33 99,233,725,250 8,875,678,753
Current tax liabilities 46,593,089,060 34,343,771,456
Net employee benefit liabilities 13 9,123,887,095 14,105,725,451
Guarantee deposits received 29,30,31 9,368,668,603 9,471,527,500
Provisions 15,36 97,053,617,960 100,572,537,167
2,400,883,882,688 1,955,307,058,897
Total liabilities 12,546,120,735,746 11,903,177,833,541
Equity
Share capital 17 802,326,430,000 802,326,430,000
Reserves 18 57,704,443,955 57,704,443,955
Accumulated other comprehensive income 20,27 (6,182,687,024) (28,573,135,455)
Retained earnings 19,21 2,016,527,869,168 1,862,351,366,867
Total equity 2,870,376,056,099 2,693,809,105,367
Total liabilities and equity ￦ 15,416,496,791,845 ￦ 14,596,986,938,908
2017 2016
The above consolidated statements of financial position should be read in conjunction with the accompanying notes.
4

Consolidated Statements of Comprehensive Income
Years Ended December 31, 2017 and 2016
Operating income
Card income 22,30,34 2,731,457,662,885 2,640,405,950,461
Interest income 24,30 22,138,759,556 22,158,040,218
Gain on valuation and disposal of securities 23 947,960,760 2,049,970,819
Dividend income 162,417,126 297,057,201
Decrease in provision for unused credit limits 15 2,777,160,020 -
Other operating income 25,30 263,287,569,319 89,312,378,191
3,020,771,529,666 2,754,223,396,890
Operating expenses
Card expenses 22,30,34 1,372,268,397,457 1,234,289,711,845
Interest expenses 24,30 244,379,896,244 258,561,276,509
Selling and administrative expenses 13,26,34 717,158,526,509 677,697,525,766
Securitization expenses 625,766,405 471,527,841
Impairment losses and losses on disposal of receivables 8,30 233,193,868,453 246,242,592,536
Increase in provision for unused credit limits 15 - 4,092,555,787
Other operating expenses 25,30 194,402,903,449 83,704,895,026
2,762,029,358,517 2,505,060,085,310
Operating profit 258,742,171,149 249,163,311,580
Non-operating income
Gain on disposal of property and equipment, and intangible assets 35,082,883 204,164,802
Rental income 34 3,432,893,361 2,933,260,467
Miscellaneous gain 2,291,319,446 547,281,388
5,759,295,690 3,684,706,657
Non-operating expenses
Loss on disposal of property and equipment, and intangible assets 766,394,066 346,407,166
Donations 4,848,087,071 2,399,032,084
Miscellaneous loss 49,680,320 -
5,664,161,457 2,745,439,250
Profit before income tax expense 258,837,305,382 250,102,578,987
Income tax expense 27 67,272,391,443 60,136,550,245
Profit for the period 191,564,913,939 189,966,028,742
Other comprehensive income 20
Items that will not be reclassified to profit or loss
Remeasurements of net defined benefit liabilities 5,728,118,220 2,098,048,624
Items that may be subsequently reclassified to profit or loss
Cash flow hedges 16,662,330,211 7,712,919,876
22,390,448,431 9,810,968,500
Total comprehensive income for the period 213,955,362,370 199,776,997,242
Earnings per share 28
Basic and diluted earnings per share 1,194 1,184
2017 2016
The above consolidated statements of comprehensive income should be read in conjunction with the accompanying notes.
5

Consolidated Statements of Changes in Equity
(in Korean won)
Balance at January 1, 2016 802,326,430,000 45,399,364,539 12,305,079,416 (38,384,103,955) 1,672,385,338,125 2,494,032,108,125
Total comprehensive income
Profit for the period - - - - 189,966,028,742 189,966,028,742
Other comprehensive income
Remeasurements of net defined benefit liabilities - - - 2,098,048,624 - 2,098,048,624
Cash flow hedges - - - 7,712,919,876 - 7,712,919,876
Balance at December 31, 2016 802,326,430,000 45,399,364,539 12,305,079,416 (28,573,135,455) 1,862,351,366,867 2,693,809,105,367
Balance at January 1, 2017 802,326,430,000 45,399,364,539 12,305,079,416 (28,573,135,455) 1,862,351,366,867 2,693,809,105,367
Dividends paid - - - - (37,388,411,638) (37,388,411,638)
Total comprehensive income
Profit for the period 　- 　- 　- 　- 191,564,913,939 191,564,913,939
Other comprehensive income
Remeasurements of net defined benefit liabilities 　- 　- 　- 5,728,118,220 　- 5,728,118,220
Cash flow hedges 　- 　- 　- 16,662,330,211 　- 16,662,330,211
Balance at December 31, 2017 802,326,430,000 45,399,364,539 12,305,079,416 (6,182,687,024) 2,016,527,869,168 2,870,376,056,099
capital
Share
premium
Share
AccumulatedReserves
Total
Other
reserves earnings
Retainedother
comprehensive income
The above consolidated statements of changes in equity should be read in conjunction with the accompanying notes.
6

Consolidated Statements of Cash Flows
Cash flows from operating activities
Cash generated from (used in) operating activities 35 144,465,702,755 (327,805,594,973)
Interests received 20,909,505,744 21,524,615,156
Interests paid (264,488,398,746) (311,082,024,180)
Dividends received 162,417,126 297,057,201
Income taxes paid (62,462,995,480) (48,246,818,000)
Net cash outflow from operating activities (161,413,768,601) (665,312,764,796)
Cash flows from investing activities
Disposal of available-for-sale financial assets 22,439,400 37,146,200
Decrease (increase) in guarantee deposits provided 396,206,490 (1,632,882,054)
Disposal of property and equipment 307,641,756 262,005,962
Disposal of intangible assets 19,534,000 978,000,000
Acquisition of property and equipment (30,345,845,433) (49,157,963,737)
Acquisition of intangible assets (34,007,997,055) (24,480,093,308)
Net cash outflow from investing activities (63,608,020,842) (73,993,786,937)
Cash flows from financing activities 35
Proceed from borrowings 1,545,000,000,000 2,305,000,000,000
Proceeds from issue of debentures 11,938,512,879,156 13,171,358,516,669
Repayment of borrowings (525,000,000,000) (1,380,000,000,000)
Repayment of debentures (12,586,485,000,000) (13,318,000,000,000)
Dividends paid (37,388,411,638) -
Net cash inflow from financing activities 334,639,467,518 778,358,516,669
Net increase in cash and cash equivalents 109,617,678,075 39,051,964,936
Cash and cash equivalents at the beginning of the period 35 544,794,485,545 505,742,520,609
Cash and cash equivalents at the end of the period 35 654,412,163,620 544,794,485,545
2017 2016
The above consolidated statements of cash flows should be read in conjunction with the accompanying notes.
7

Notes to the Consolidated Financial Statements
8
1. General Information
Hyundai Card Co., Ltd. (the Company or the Parent Company), which is a controlling
company in accordance with Korean International Financial Reporting Standards (“Korean
IFRS”) 1110 Consolidated Financial Statements, is engaged in the credit card business, with
its headquarters located at 3, Uisadang-daero, Yeongdeungpo-gu, Seoul. On June 15, 1995,
the Company acquired the credit card business of Korea Credit Circulation Co., Ltd., and on
June 16, 1995, the Korean government granted permission to the Company to engage in the
credit card business. The Company operates its business under the Specialized Credit
Financial Business Act and other relevant applicable regulations.
As at December 31, 2017, the Company has approximately 6.90 million card members, 2.50
million registered merchants, and 109 marketing centers and branches.
As at December 31, 2017, the share capital of the Company is ￦802,326 million after
several capital increase and retirement of treasury shares. The shareholders as at
December 31, 2017 and 2016, are as follows:
2017 2016
Number of
shares
Percentage of
ownership(%)
Number of
shares
Percentage of
ownership(%)
Hyundai Motor Co., Ltd. 59,301,937 36.96 59,301,937 36.96
Kia Motors Co., Ltd. 18,422,142 11.48 18,422,142 11.48
Hyundai Commercial Inc. 1
39,378,026 24.54 8,889,622 5.54
Consumer Preferred Choice Limited 1
16,046,527 9.99 - -
Complete Logistic Solutions Limited 1
14,441,876 9.00 - -
AlpInvest Partners Co-Investments
2015 I SPV B.V. 1 7,101,393 4.43
- -
AlpInvest Partners Co-Investments
2015 II SPV B.V. 1 707,652 0.44
- -
AlpInvest Mich SPV B.V. 1
214,221 0.14 - -
IGE USA Investments1
- 0.00 69,000,073 43.00
Others 4,851,512 3.02 4,851,512 3.02
160,465,286 100.00 160,465,286 100.00
1 IGE USA Investments sold 69,000,073 ordinary shares (ownership interest: 43%) of the
Company, in accordance with the share transfer agreement entered on February 1, 2017,
to Hyundai Commercial Inc., Consumer Preferred Choice Limited, Complete Logistic
Solutions Limited, AlpInvest Partners Co-Investments 2015 I SPV B.V., AlpInvest Partners
Co-Investments 2015 II SPV B.V. and AlpInvest Mich SPV B.V., on February 24, 2017.

9
2. Basis of Consolidated Financial Statements Preparation and Significant Accounting
Policies
2.1 Basis of consolidated financial statements preparation
The Company and its subsidiaries (the “Group”) have prepared the consolidated financial
statements in accordance with K-IFRS.
The principal accounting policies are set out below. Except for the effect of the amendments
to K-IFRSs and new interpretations set out below, the principal accounting policies used to
prepare the consolidated financial statements as at and for the year ended December 31,
2017, are consistent with the accounting policies used to prepare the consolidated financial
statements as of and for the year ended December 31, 2016.
The accompanying consolidated financial statements have been prepared on the historical
cost basis, except for certain non-current assets and financial instruments that are measured
at fair values, as explained in the accounting policies below. Historical cost is generally
based on the fair values of the consideration given.
2.2 New and amended standards adopted by the Group
The Group has applied the following standards and amendments for the first time for their
annual reporting period commencing January 1, 2017. The adoption of these amendments
did not have any material impact on the financial statements.
- Amendments to Korean IFRS 1007 Statement of Cash Flows
Amendments to Korean IFRS 1007 Statement of Cash flows require to provide disclosures
that enable users of financial statements to evaluate changes in liabilities arising from
financing activities, including both changes arising from cash flows and non-cash flows (Note
35).
- Amendments to Korean IFRS 1012 Income Tax
Amendments to Korean IFRS 1012 clarify how to account for deferred tax assets related to
debt instruments measured at fair value. Korean IFRS 1012 provides requirements on the
recognition and measurement of current or deferred tax liabilities or assets. The
amendments issued clarify the requirements on recognition of deferred tax assets for
unrealized losses, to address diversity in practice.
- Amendments to Korean IFRS 1112 Disclosures of Interests in Other Entities
Amendments to Korean IFRS 1112 clarify when an entity’s interest in a subsidiary, a joint
venture or an associate is classified as held for sales in accordance with Korean IFRS 1105,
the entity is required to disclose other information except for summarized financial
information in accordance with Korean IFRS 1112.

10
2.3 New standards and interpretations not yet adopted by the Group
Certain new accounting standards and interpretations that have been published that are not
mandatory for annual reporting period commencing January 1, 2017 and have not been
early adopted by the Group are set out below.
- Amendments to Korean IFRS 1028 Investments in Associates and Joint Ventures
When an investment in an associate or a joint venture is held by, or it held indirectly through,
an entity that is a venture capital organization, or a mutual fund, unit trust and similar entities
including investment-linked insurance funds, the entity may elect to measure that investment
at fair value through profit or loss in accordance with Korean IFRS 1109. The amendments
clarify that an entity shall make this election separately for each associate of joint venture, at
initial recognition of the associate or joint venture. The amendment will be effective for
annual periods beginning on or after January 1, 2018, with early adoption permitted. The
Group does not expect the amendments to have a significant impact on the financial
statements because the Group is not a venture capital organization.
- Amendment to Korean IFRS 1040 Transfers of Investment Property
Paragraph 57 of Korean IFRS 1040 clarifies that a transfer to, or from, investment property,
including property under construction, can only be made if there has been a change in use
that is supported by evidence, and provides a list of circumstances as examples. The
amendment will be effective for annual periods beginning on or after January 1, 2018, with
early adoption permitted. The Group does not expect the amendment to have a significant
impact on the financial statements.
- Amendments to Korean IFRS 1102 Share-based Payment
Amendments to Korean IFRS 1102 clarify accounting for a modification to the terms and
conditions of a share-based payment that changes the classification of the transaction from
cash-settled to equity-settled. Amendments also clarify that the measurement approach
should treat the terms and conditions of a cash-settled award in the same way as for an
equity-settled award. The amendments will be effective for annual periods beginning on or
after January 1, 2018, with early adoption permitted. The Group does not expect the
amendments to have a significant impact on the financial statements.
- Enactments to Interpretation 2122 Foreign Currency Transaction and Advance
Consideration
According to these enactments, the date of the transaction for the purpose of determining
the exchange rate to use on initial recognition of the related asset, expense or income (or
part of it) is the date on which an entity initially recognizes the non-monetary asset or non-
monetary liability arising from the payment or receipt of advance consideration. If there are
multiple payments or receipts in advance, the entity shall determine a date of the transaction
for each payment or receipt of advance consideration. These enactments will be effective for
annual periods beginning on or after January 1, 2018, with early adoption permitted. The

11
Group does not expect the enactments to have a significant impact on the financial
statements.
- Enactment of Korean IFRS 1116 Leases
Korean IFRS 1116 Leases issued on May 22, 2017 is effective for annual periods beginning
on or after January 1, 2019, with early adoption permitted. This standard will replace Korean
IFRS 1017 Leases, Interpretation 2104 Determining whether an Arrangement contains a
Lease, Interpretation 2015 Operating Leases-Incentives, and Interpretation 2027 Evaluating
the Substance of Transactions Involving the Legal Form of a Lease.
At inception of a contract, the entity shall assess whether the contract is, or contains, a lease.
Also, at the date of initial application, the entity shall assess whether the contract is, or
contains, a lease in accordance with the standard. However, the entity will not need to
reassess all contracts with applying the practical expedient because the entity elected to
apply the practical expedient only to contracts entered before the date of initial application.
For a contract that is, or contains, a lease, the entity shall account for each lease component
within the contract as a lease separately from non-lease components of the contract. A
lessee is required to recognize a right-of-use asset representing its right to use the
underlying leased asset and a lease liability representing its obligation to make lease
payments. The lessee may elect not to apply the requirements to short-term lease (a lease
term of 12 months or less at the commencement date) and low value assets (e.g. underlying
assets below $ 5,000). In addition, as a practical expedient, the lessee may elect, by class of
underlying asset, not to separate non-lease components from lease components, and
instead account for each lease component and any associated non-lease components as a
single lease component.
(a) Lessee accounting
Method of applying IFRS 1116 ‘Leases’
A lessee shall apply this standard to its leases either:
· retrospectively to each prior reporting period presented applying Korean IFRS 1008
Accounting Policies, Changes in Accounting Estimates and Errors (Full retrospective
application); or
· retrospectively with the cumulative effect of initially applying the standard recognized at
the date of initial application.
The Group has not yet elected the application method.
Financial effects of IFRS 1116 ‘Leases’
The Group is analyzing the effects on the financial statements; however, it is difficult to
provide reasonable estimates of financial effects until the analyses is complete.

12
(b) Lessor accounting
Method of applying and financial effects of IFRS 1116 ‘Leases’
The Group expects the effect on the financial statements applying the new standard will not
be significant as accounting for the Group, as a lessor, will not significantly change.
- Korean IFRS 1109 Financial Instruments
The new standard for financial instruments issued on September 25, 2015 is effective for
annual periods beginning on or after January 1, 2018 with early application permitted. This
standard will replace Korean IFRS 1039 Financial Instruments: Recognition and
Measurement. The Group will apply the standards for annual periods beginning on or after
January 1, 2018.
The standard requires retrospective application with some exceptions. For example, an
entity is not required to restate prior period in relation to classification and measurement
(including impairment) of financial instruments. The standard requires prospective
application of its hedge accounting requirements for all hedging relationships except the
accounting for time value of options and other exceptions.
Korean IFRS 1109 Financial Instruments requires three main areas including: (a)
classification and measurement of financial assets on the basis of the entity’s business
model for managing financial assets and the contractual cash flow characteristics of the
financial assets, (b) a new impairment model of financial instruments based on the expected
credit losses, and (c) hedge accounting including expansion of the range of eligible hedging
instruments and hedged items that qualify for hedge accounting or change of a method of
hedge effectiveness assessment.
An effective implementation of Korean IFRS 1109 requires preparation processes including
financial impact assessment, accounting policy establishment, accounting system
development and the system stabilization. The impact on the Group’s financial statements
due to the application of the standard is dependent on judgements made in applying the
standard, financial instruments held by the Group and macroeconomic variables.
With the implementation of Korean IFRS 1109, the Group prepared for internal management
process or completed accounting system adjustments for financial instruments reporting.
The Group performed an impact assessment to identify potential financial effects of applying
Korean IFRS 1109. The assessment was performed based on retainable information as at
December 31, 2017, and the results of the assessment are explained as below.
(a) Classification and Measurement of Financial Assets
When implementing Korean IFRS 1109, the classification of financial assets will be driven by
the Group’s business model for managing the financial assets and contractual terms of cash
flow. The following table shows the classification of financial assets measured subsequently
at amortized cost, at fair value through other comprehensive income and at fair value
through profit or loss. If a hybrid contract contains a host that is a financial asset, the

13
classification of the hybrid contract shall be determined for the entire contract without
separating the embedded derivative.
Business model for the
contractual cash flows
characteristics
Solely represent payments of
principal and interest
All other
Hold the financial asset for
the collection of the
contractual cash flows
Measured at amortized cost1
Recognized at fair value through
profit or loss2
Hold the financial asset for
the collection of the
contractual cash flows and
sale
other comprehensive income 1
Hold for sale
profit or loss
1 A designation at fair value through profit or loss is allowed only if such designation
mitigates an accounting mismatch (irrevocable).
2 Equity investments not held for trading can be recorded in other comprehensive income
(irrevocable).
With the implementation of Korean IFRS 1109, the criteria to classify the financial assets at
amortized cost or at fair value through other comprehensive income are more strictly applied
than the criteria applied with Korean IFRS 1039. Accordingly, the financial assets at fair
value through profit or loss may increase by implementing Korean IFRS 1109 and may result
an extended fluctuation in profit or loss.
As at December 31, 2017, the Group owns card assets and other financial assets of
12,925,336 million, financial assets available-for-sales of 1,767 million and financial
assets at fair value thorough profit or loss of 993,466 million.
The following table presents the impact of the change in classification and measurement of
financial instrument (excluding derivatives) held by the Group as at December 31, 2017,
using the financial instrument accounting system developed by the Group with applying
Korean IFRS 1109.

14
(in millions of
Korean won) Classification in accordance with Amount in accordance with
Account
Korean
IFRS1039
Korean
IFRS 1109
Korean
IFRS1039
Korean IFRS
1109
Equity
instruments
Financial assets
available-for-sale
Recognized at fair
value through other
comprehensive
income 1,767
1,484
Recognized at fair
value through profit
or loss
283
Debt
instruments
Financial assets at
fair value through
profit or loss
Recognized at fair
value through profit
or loss
993,466 993,466
With the implementation of Korean IFRS 1109, as at December 31, 2017, 283 million of
financial assets available-for-sales, which are measured at amortized cost, are classified to
financial assets recognize at fair value through profit or loss. These classifications will
increase the financial assets recognized at fair value through profit or loss from 99.82% to
99.85% over the total financial assets (excluding derivatives) of 995,233 million.
(b) Impairment: Financial Assets and Contract Assets
The new impairment model requires the recognition of impairment provisions based on
expected credit losses (ECL) rather than only incurred credit losses as is the case under
Korean IFRS 1039. It applies to financial assets classified at amortized cost, debt
instruments measured at fair value through other comprehensive income, lease receivables,
contract assets, loan commitments and certain financial guarantee contracts.
Under Korean IFRS 1109 ‘expected loss’ model, a credit event (or impairment ‘trigger’) no
longer has to occur before credit losses are recognized. The Group will always recognize (at
a minimum) 12-month expected credit losses in profit or loss. Lifetime expected losses will
be recognized on assets for which there is a significant increase in credit risk after initial
recognition.
Stage Loss allowance
1
No significant increase in credit
risk after initial recognition1
12-month expected credit losses (expected credit
losses that result from those default events on the
financial instrument that are possible within 12
months after the reporting date)
2
Significant increase in credit risk
after initial recognition Lifetime expected credit losses (expected credit
losses that result from all possible default events
over the life of the financial instrument)3 Credit-impaired
1 If the financial instrument has low credit risk at the end of the reporting period, the Group
may assume that the credit risk has not increased significantly since initial recognition.

15
Under Korean IFRS 1109, the asset that is credit-impaired at initial recognition would
recognize all changes in lifetime expected credit losses since the initial recognition as a loss
allowance with any changes recognized in profit or loss.
As at December 31, 2017, the Group owns debt investment of 13,224,450 million (card
assets and other financial assets). And, the Group recognized loss allowance of 299,114
million for these assets.
Based on result from the impact assessment of Korean IFRS 1109, the loss allowance of the
Group as at December 31, 2017, is estimated as follows:
(in millions of Korean won) Loss allowance in accordance with
Difference (b)-(a)Account
Korean IFRS 1039
(a)
Korean IFRS 1109
(b)
Card assets and other financial assets 299,114 380,817 81,703
Unused credit limits 54,404 84,553 30,149
353,518 465,370 111,852
(c) Hedge Accounting
Hedge accounting mechanics (fair value hedges, cash flow hedges and hedge of net
investments in a foreign operations) required by Korean IFRS 1039 remains unchanged in
Korean IFRS 1109, however, the new hedge accounting rules will align the accounting for
hedging instruments more closely with the Group’s risk management practices. As a general
rule, more hedge relationships might be eligible for hedge accounting, as the standard
introduces a more principles-based approach. Korean IFRS 1109 allows more hedging
instruments and hedged items to qualify for hedge accounting, and relaxes the hedge
accounting requirement by removing two hedge effectiveness tests that are a prospective
test to ensure that the hedging relationship is expected to be highly effective and a
quantitative retrospective test (within range of 80-125%) to ensure that the hedging
relationship has been highly effective throughout the reporting period.
With implementation of Korean IFRS 1109, volatility in profit or loss may be reduced as
some items that were not eligible as hedged items or hedging instruments under Korean
IFRS 1039 are now eligible under Korean IFRS 1109.
As at December 31, 2017, the Group applies hedge accounting for issued debentures of
3,519,246 million. The Group recognized other comprehensive income of 7,233 million
related to cash flow hedges. Based on result from the impact assessment, the Group’s risk
management activities meets the qualifying criteria for hedge accounting of Korean IFRS
1039 and the Group expects the application of Korean IFRS 1109 will not have an impact on
the financial statements.
- Enactment of Korean IFRS 1115 Revenue from Contracts with Customers

16
Korean IFRS 1115 Revenue from Contracts with Customers issued on November 6, 2015
will be effective for annual reporting periods beginning on or after January 1, 2018 with early
adoption permitted. This standard replaces Korean IFRS 1018 Revenue, Korean IFRS 1011
Construction Contracts, Interpretation 2031 Revenue-Barter Transactions Involving
Advertising Services, Interpretation 2113 Customer Loyalty Programs, Interpretation 2115
Agreements for the Construction of Real Estate and Interpretation 2118 Transfers of assets
from customers.
The Group must apply Korean IFRS 1115 Revenue from Contracts with Customers within
annual reporting periods beginning on or after January 1, 2018, and will apply the standard
retrospectively to prior reporting period presented in accordance with Korean IFRS 1008
Accounting Policies, Changes in Accounting Estimates and Errors and apply simplified
transition method with no restatement for completed contracts and other as at January 1,
2017.
Korean IFRS 1018 and other current revenue standard identify revenue as income that
arises in the course of ordinary activities of an entity and provides guidance on a variety of
different types of revenue, such as, sale of goods, rendering of services, interest, dividends,
royalties and construction contracts. However, the new standard is based on the principle
that revenue is recognized when control of a good or service transfers to a customer so the
notion of control replaces the existing notion of risks and rewards. A new five-step process
must be applied before revenue from contract with customers can be recognized:
 Identify contracts with customers
 Identify the separate performance obligation
 Determine the transaction price of the contract
 Allocate the transaction price to each of the separate performance obligations, and
 Recognize the revenue as each performance obligation is satisfied.
The Group is analyzing the effects of applying Korean IFRS 1115 on the consolidated
financial statements; however, it is difficult to provide reasonable estimates of financial
effects until the analysis is complete.
2.4 Significant Accounting Policies
1) Basic of consolidation
The consolidated financial statements incorporate the financial statements of the Company
and entities (including structured entities) controlled by the Parent Company (and its
subsidiaries). 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

17
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 Group’s voting rights in an investee are
sufficient to give it power, including:
• the size of the Group’s holding of voting rights relative to the size 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; and
• any additional facts and circumstances that indicate the Group has, or does not have, the
current ability to direct the relevant activities at the time 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 statements of comprehensive income from the effective date of acquisition
to the effective date of disposal, as appropriate. Carrying amounts of the non-controlling
interests in subsidiaries are adjusted with the changes in the proportion of the equity held by
non-controlling interests after initial acquisition of non-controlling interests. Total
comprehensive income of subsidiaries is attributed to the owners of the Group and to the
non-controlling interests even if this results in the non-controlling interests having a deficit
balance.
When necessary, adjustments are made to the financial statements of subsidiaries to bring
their accounting policies in line with those used by the Group.
All intragroup transactions, balances, income and expenses are eliminated in full on
consolidation.
When the Parent Company loses control of a subsidiary, the profit 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 Parent Company 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 or, when applicable, the cost on initial recognition of an
investment in an associate or a jointly controlled entity.
2) Card assets

18
Card assets are amounts due from customers for services performed in the ordinary course
of business. Card assets are initially measured at fair value, including direct transaction cost;
thereafter, it is measured at amortized cost using the effective interest rate method, except
for the financial assets classified as at fair value through profit or loss.
(a) Card receivables
The Group records card receivables when its cardholders make purchases from domestic
and foreign merchants, and when cardholders of MasterCard International, Visa International
and Diners Club International make purchases from domestic merchants. Commission from
merchants for advance payments and commission from cardholders for installment
payments and cash advances are recognized as revenue on an accrual basis. Card
receivables with non-interest-bearing installment payment are initially recognized at fair
value using a discounted cash flow (“DCF”). As interest rate and other factors that are
considered for calculating the DCF of interest-bearing installment payments are different
than those for non-interest-bearing installment payment, the Group independently
determines the discount rates for non-interest-bearing installment payments using objective
and reasonable method.
(b) Cash Advances
Cash advance service allows cardholders to withdraw cash up to certain limits depending on
card members’ credit rating in accordance with the Specialized Credit Financial Business
Law. Fees related to cash advances are charged on the payment date, with a specific
percentage of service charges, and interest income is accrued on a daily basis until
repayment of cash advance.
(c) Card Loans
The Group extends the card loans to its cardholders in accordance with the Specialized
Credit Financial Business Law. Commission incomes are accrued on a daily basis based on
a constant rate per cardholders’ credit rate until repayments of card loans.
3) Financial assets
A financial asset is recognized when the Group becomes a party to the contract and at initial
recognition. A financial asset, excluding a financial asset at fair value through profit or loss, is
measured at its fair value, plus or minus transaction costs that are directly attributable to the
acquisition of the financial asset. Otherwise, the transaction cost that is directly attributable
to the acquisition of the financial asset at fair value through profit or loss is recognized in
profit or loss immediately when it arises.
A regular-way purchase and sale of financial assets is recognized and derecognized at trade
date. It is a purchase or sale of a financial asset under a contract whose terms require
delivery of the asset within the time frame established generally by regulation or convention
in the marketplace concerned.

19
Financial assets are classified into the following specified categories: financial assets at fair
value through profit or loss, held to maturity, available-for-sale financial assets and loans and
receivables. The classification depends on the nature and purpose of the financial assets
and is determined at the time of initial recognition.
(a) Effective interest rate method
The effective interest rate method is used for calculating the amortized cost of a debt
instrument and allocating interest income over the relevant period. The effective interest rate
is the discounted rate used to estimate the net carrying amount of future cash receipts
(including all fees and points paid or received that form an integral part of the effective
interest rate, transaction costs and other premiums or discounts) throughout the expected
life of the debt instrument, or, where appropriate, a shorter period,
Interest income for debt instruments, except for those financial assets classified as at fair
value through profit or loss, is recognized using an effective interest rate method.
(b) Financial assets at fair value through profit or loss
Financial assets at fair value through profit or loss include financial assets held for trading or
financial assets designated as at fair value through profit or loss upon initial recognition. A
financial asset that is acquired or incurred principally for the purpose of selling or
repurchasing in the near term and all derivatives, including embedded derivatives bifurcated
from host contract (except for a derivative that is a designated and effective hedging
instrument), are classified as held for trading. Financial assets at fair value through profit or
loss are measured at fair value and the change in value is recognized in profit (loss) for the
period.
A financial asset is classified as held for trading if:
• it has been acquired principally for the purpose of selling in the near term;
• 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, may be designated as at fair
value through profit or loss upon initial recognition if:
• such designation eliminates or significantly reduces a measurement or recognition
inconsistency that would otherwise arise;
• 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
permits the entire combined contract (asset or liability) to be designated as at fair value
through profit or loss.

20
Financial assets at fair value through profit or loss are stated at fair value, and any gains or
losses arising on remeasurement are recognized in profit (loss) for the period.
(c) Held to maturity investments
Non-derivative financial assets with fixed or determinable payments and fixed maturity dates
that the Group has the positive intent and ability to hold to maturity are classified as held to
maturity investments. Held to maturity investments are measured at amortized cost using the
effective interest rate method, less any impairment, with revenue recognized on an effective
interest rate method basis.
(d) Available-for-sale financial assets
Non-derivative financial assets that are not classified as at held to maturity investment, held
for trading, designated as at fair value through profit or loss or loans and receivables are
classified as financial assets available-for-sale.
Financial assets available-for-sale are subsequently measured at fair value. Gains and
losses arising from changes in fair value are recognized and accumulated in other
comprehensive income, with the exception of interest calculated using the effective interest
rate method and foreign exchange gains and losses on monetary available-for-sale financial
assets, which are recognized in profit (loss) for the period. Where the available-for-sale
financial assets are disposed of, or are determined to be impaired, the cumulative gains or
losses previously accumulated in other comprehensive income are recognized profit (loss)
for the period.
Dividends from available-for-sale equity instruments are recognized in profit (loss) for the
period when the Group’s right to receive payment of the dividends is established.
The available-for-sale investments in equity instruments that do not have a quoted price in
an active market for an identical instrument and their fair value are not reliably measurable,
and derivative assets that are linked to those investments and must be settled by delivery of
such an equity instrument are measured at cost, net of identified impairment losses.
(e) Loans and receivables
Trade receivables, loans and other receivables that have fixed or determinable payments
and are not quoted in an active market are classified as loans and receivables. Loans and
receivables are measured at amortized cost using the effective interest rate method, less
any impairment. Interest income is recognized by applying the effective interest rate, except
for short-term receivables when the effects of discount would be immaterial.
(f) Impairment of financial assets
Financial assets, other than those at fair value through profit or loss, are assessed for
indicators of impairment at the end of each reporting period. Financial assets are considered
to be impaired when there is objective evidence that, as a result of one or more events that

21
occurred after the initial recognition of the financial asset, the estimated future cash flows of
the investment have been affected.
For listed and unlisted equity investments classified as available-for-sale financial assets, a
significant or prolonged decline in the fair value of the security below its cost is considered to
be objective evidence of impairment.
For all financial assets classified as available-for-sale assets, objective evidence of
impairment could include:
• significant financial difficulty of the issuer or counterparty,
• default or delinquency in interest or principal payments,
• it becoming probable that the borrower will enter into bankruptcy or financial reorganization
or
• an active market for financial assets is not available due to financial difficulties.
For certain categories of financial assets, such as card receivables, assets that are assessed
not to be impaired individually are, in addition, assessed for impairment on a collective basis.
Objective evidence of impairment for a portfolio of receivables could include the Group’s past
experience of collecting payments and an increase in the number of delayed payments in the
portfolio exceeding the average credit period, as well as observable changes in national or
local economic conditions that correlate with default on receivables.
For financial assets carried at amortized cost, the amount of the impairment loss recognized
is the difference between the asset’s carrying amount and the present value of estimated
future cash flows, discounted at the financial asset’s original effective interest rate.
For financial assets measured at amortized cost, the amount of the impairment is recognized
as the difference between the carrying amount of the asset and current value of estimated
future cash flows, discounted similar to the current market rate. The impairment is not
reversed in subsequent periods.
When an available-for-sale financial asset is considered to be impaired, cumulative gains or
losses previously recognized in other comprehensive income are recognized in profit (loss)
for the period.
For financial assets measured at amortized cost, if, in a subsequent period, the amount of
the impairment loss decreases and the decrease can be related objectively to an event
occurring after the impairment was recognized, the previously recognized impairment loss is
reversed through profit (loss) for the period to the extent that the carrying amount of the
investment at the date the impairment is reversed does not exceed what the amortized cost
would have been had the impairment not been recognized.
In respect of available-for-sale equity instruments, impairment losses previously recognized
in profit (loss) for the period are not reversed. Any increase in fair value subsequent to an
impairment loss is recognized in other comprehensive income. In respect of available-for-
sale debt instruments, in a subsequent period, if the amount of the impairment loss

22
increases and the increase can be related objectively to an event occurring after the
impairment was recognized, the previously recognized impairment loss is reversed through
profit (loss) for the period.
(g) Derecognition of financial assets
The Group derecognizes a financial asset only when the contractual rights to the cash flows
from the asset expire, or when it transfers the financial asset and substantially all the risks
and rewards of ownership of the asset to another entity. If the Group neither transfers nor
retains substantially all the risks and rewards of ownership, but 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 recognize a collateralized borrowing for the proceeds received.
If the Group derecognizes the entire financial asset, the difference between the total amount
received, plus the sum of cumulative income recognized in other comprehensive income and
the book amount of the asset is recognized in profit (loss) for the period.
If the Group does not derecognize the entire financial asset (for example, the Group holds
either an option to repurchase a certain portion of the asset or remaining equity, which does
not allow the Group to hold most of the risks and benefits from the financial asset or the
Group-controlled assets), the Group divides the book amount of financial assets into a
recognized part and a unrecognized part in accordance with relative fair value of each
portion. The difference between total received amount for derecognized portion of the asset,
plus the sum of cumulative income recognized in other comprehensive income and the book
amount of the asset is recognized in profit (loss) for the period. Cumulative income
recognized in other comprehensive income is divided into a recognized part and an
unrecognized part in accordance with relative fair value of each portion.
4) Property and equipment
Property and equipment are stated at cost, less subsequent accumulated depreciation and
accumulated impairment losses. The cost of an item of property and equipment is directly
attributable to its 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 are recognized in the carrying amount of an asset or 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 measurable. Routine maintenance and repairs are
expensed as incurred.
The Group does not depreciate land. Depreciation expense is computed using the straight-
line method based on the estimated useful lives of the assets as follows:

23
Useful lives
Buildings 40 years
Fixtures and equipment 4
Vehicles 4
Each part of property and equipment with a cost that is significant in relation to the total cost
is depreciated separately.
The Group assesses the depreciation method, the estimated useful lives and residual values
of property 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 future economic benefits are not expected through the use or disposition of property
and equipment, the Group removes the book amount of the assets from the consolidated
statements of financial position. The difference between the amounts received from the
disposal and the book amount of assets is recognized as profit (loss) for the period when the
assets are removed.
5) Intangible assets
(a) Intangible assets acquired separately
Intangible assets with finite useful lives that are acquired separately are carried at cost, less
accumulated amortization and accumulated impairment losses. Amortization is recognized
on a straight-line basis over their estimated useful lives. The estimated useful lives and
amortization method are reviewed at the end of each reporting period, with the effect of any
changes in estimate being accounted for on a prospective basis. Intangible assets with
indefinite useful lives that are acquired separately are carried at cost, less accumulated
impairment losses.
(b) Internally generated intangible assets - research and development expenditure
Expenditure on research activities is recognized as an expense in the period in which it is
incurred.
Expenditure arising from development (or from the development phase of an internal project)
is recognized as an intangible asset if, and only if, the development project is designed to
produce new or substantially improved products, and the Group can demonstrate the
technical and economic feasibility and measure reliably the resources attributable to the
intangible asset during its development.
The amount initially recognized for internally generated intangible assets is the sum of the
expenditure incurred from the date when the intangible asset first meets the recognition
criteria listed above. Where no internally generated intangible asset can be recognized,
development expenditure is recognized in profit (loss) for the period when it is incurred.

24
Subsequent to initial recognition, internally generated intangible assets are reported at cost,
less accumulated amortization and accumulated impairment losses, on the same basis as
intangible assets that are acquired separately.
(c) Intangible assets acquired in a business combination
Intangible assets that are acquired in a business combination are recognized separately
from goodwill, and are initially recognized at their fair value at the acquisition date (which is
regarded as their deemed cost). Subsequent to initial recognition, intangible assets acquired
in a business combination are reported at cost, less accumulated amortization and
accumulated impairment losses, on the same basis as intangible assets that are acquired
separately.
(d) Disposal of intangible assets
If future economic benefits are not expected through the use or disposition of the intangible
assets, the Group removes the book amount of the assets from the consolidated financial
statements. The difference between the amounts received from the disposal of intangible
assets and the book amounts of the assets are recognized as profit (loss) for the period
when the assets are removed.
6) Impairment of tangible and intangible assets, other than goodwill
At the end of each reporting period, the Group reviews the carrying amounts of its tangible
and intangible assets to determine whether there is any indication that those assets have
suffered an impairment loss. If any such indication exists, the recoverable amount of the
asset is estimated in order to determine the extent of the impairment loss (if any). Where it is
not possible to estimate the recoverable amount of an individual asset, the Group estimates
the recoverable amount of the Cash-Generating Unit (“CGU”) to which the asset belongs.
Where a reasonable and consistent basis of allocation can be identified, assets for which
recoverable amounts are not individually estimated are also allocated to individual CGUs, or
otherwise, they are allocated to the smallest group of CGUs for which a reasonable and
consistent allocation basis can be identified.
Intangible assets with indefinite useful lives and intangible assets not yet available for use
are tested for impairment at least annually and whenever there is an indication that the
assets may be impaired.
Recoverable amounts are the higher of fair value, less costs to sell, or value in use. In
assessing value in use, the estimated future cash flows are discounted to their present value
using a pretax discount rate that reflects current market assessments of the time value of
money and the risks specific to the asset for which the estimates of future cash flows have
not been adjusted.
If the recoverable amount of an asset (or a CGU) is estimated to be less than its carrying
amount, the carrying amount of the asset (or the CGU) is reduced to its recoverable amount.
An impairment loss is recognized immediately in profit (loss) for the period.

25
If impairment recognized in prior periods is reversed, the book amount of the individual
assets (or CGU) is the smaller of the carrying amount of the recoverable amount or the book
amount that the impairment would not have recognized in prior periods and the reversal of
impairment loss is recognized immediately in profit (loss) for the period at that time.
7) Provisions
Provisions are recognized when the Group has a present obligation (legal or constructive) as
a result of a past event, it is probable that the Group will be required to settle the obligation
and the amount of the obligation is reliably estimated.
The amounts recognized as a provision are the best estimate of the consideration required
to settle the present obligation at the end of the reporting period, taking into account the risks
and uncertainties surrounding the obligation. When a provision is measured using the cash
flows estimated to settle the present obligation, its carrying amount is the present value of
those cash flows (where the effect of the time value of money is material).
When some or all of the economic benefits required to settle a provision are expected to be
recovered from a third party, a receivable is recognized as an asset if it is virtually certain
that reimbursement will be received and the amount of the receivable can be measured
reliably.
At the end of each reporting period, the remaining provision balance is reviewed and
assessed to determine if the current best estimate is being recognized. If the existence of an
obligation to transfer economic benefit is no longer probable, the related provision is
reversed during the period.
8) Financial liabilities and equity instruments
(a) Classification as debt or equity
Debt and equity instruments are classified as either financial liabilities or equity in
accordance with the substance of the contractual arrangement and the definition of financial
liabilities and equity instruments.
(b) Equity instruments
An equity instrument is any contract that evidences a residual interest in the assets of an
entity after deducting all of its liabilities. Equity instruments issued by the Group are
recognized as the proceeds are received, net of direct issue costs.
Treasury shares transactions are deducted directly from equity. Profit or loss arising from
purchases and sales, issuances and incinerations of treasury shares are not recognized in
(c) Compound instruments

26
The component parts of compound instruments issued by the Group are allocated into
financial liabilities and equity in accordance with the definition of the financial asset and
liability. Convertible option that can be settled by exchanging financial asset, such as fixed
amount of cash for the fixed number of treasury shares, is equity instruments.
At the date of issue, the fair value of the liability component is estimated using the prevailing
market interest rate for a similar non-convertible instrument. This amount is recorded as a
liability on an amortized cost basis using the effective interest rate method, until extinguished
upon conversion or at the instrument’s maturity date.
The equity component is determined by deducting the amounts of the liability component
from the fair value of the compound instrument as a whole. This is recognized and included
in equity, net of income tax effects, and is not subsequently remeasured.
(d) Financial liabilities
A financial liability is recognized when the Group becomes a party to the contract and at
initial recognition. A financial liability, other than financial liability at fair value through profit or
loss, is measured at its fair value, plus or minus transaction costs that are directly
attributable to the issue of the financial liability. Otherwise, the transaction cost that is directly
attributable to the issue of the financial liability at fair value through profit or loss is
recognized in profit (loss) for the period immediately when it arises.
Financial liabilities are classified as either financial liabilities at fair value through profit or
loss or other financial liabilities.
(e) Other financial liabilities
Other financial liabilities are subsequently measured at amortized cost using the effective
interest rate method, with interest expense recognized on an effective interest rate method.
The effective interest rate method is used for calculating the amortized cost of a financial
liability and allocating interest expense over the relevant period. The effective interest rate is
the discounted rate used to estimate the net carrying value of future cash payment, including
commission and points to be paid or received, transaction cost and other premium or
discounts throughout the expected life of financial liability, or, where appropriate, a shorter
period.
(f) Derecognition of financial liabilities
The Group derecognizes financial liabilities when, and only when, the Group’s obligations
are discharged, canceled or expired. On derecognition of a financial liability in its entirety, the
difference between the carrying amount and the consideration received is recognized in
9) Derivative instruments

27
The Group enters into a variety of derivative contracts, including interest rate swaps and
currency swaps, to manage its exposure to interest rate and foreign exchange rate risk.
Derivatives are initially recognized at fair value at the date the derivative contract is entered
into, and are subsequently remeasured to their fair value at the end of each reporting period.
Gain or loss from the change in fair value is recognized in profit (loss) for the period
immediately, unless the derivative is designated and effective as a hedging instrument; in
which case the timing of the recognition in profit or loss depends on the nature of the hedge
relationship.
A derivative with a positive fair value is recognized as a financial asset, and a derivative with
a negative fair value is recognized as a financial liability.
(a) Embedded derivatives
When economic characteristics and risks of an embedded derivative are not closely related
to the host contract, a separate instrument with the same terms as the embedded derivative
would meet the definition of a derivative and the changes in fair value of hybrid contract are
not recognized in profit (loss) for the period, the Group accounts for the embedded derivative
separately from the host contract.
(b) Hedge accounting
The Group designates certain derivative instruments as cash flow hedges.
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 cash flows of the hedged item.
(c) Cash flow hedges
The effective portion of changes in the fair value of derivatives that are designated and
qualify as cash flow hedges is recognized in other comprehensive income. The gain or loss
relating to the ineffective portion is recognized immediately in profit (loss) for the period, and
is included in the other operating revenue or expenses line item.
Amounts previously recognized in other comprehensive income and accumulated in equity
are reclassified to profit (loss) for the period when the hedged item is recognized in profit
(loss) for the period.
Hedge accounting is discontinued when the Group revokes the hedging relationship; when
the hedging instrument expires or is sold, terminated or exercised; or when it no longer
qualifies for hedge accounting. Any gain or loss accumulated in equity at that time remains in
equity and is recognized when the forecasted transaction is ultimately recognized in profit or
loss. When a forecasted transaction is no longer expected to occur, the gain or loss
accumulated in equity is recognized immediately in profit or loss.

28
10) Share capital
Incremental costs directly attributable to the issue of new shares or options are shown in
equity as a deduction, net of tax, from the proceeds. Share issuance costs are incremental
costs directly attributable to the issue of equity instruments, and are deducted on the initial
recognition of the equity instruments.
Where the Parent Company or its subsidiary purchases any shares of the Parent Company
or its subsidiary, the consideration paid is deducted from shareholders’ equity as treasury
shares, until they are canceled. Where such shares are subsequently sold or reissued, any
consideration received is included in shareholders’ equity.
11) Commission revenue
(a) Fees that are a part of the financial instruments’ effective interest rate
Fees that are a part of the effective interest rate of a financial instrument are treated as an
adjustment to the effective interest rate. Such fees include compensation for activities, such
as evaluating the borrower’s financial condition; evaluating and recording guarantees,
collateral and other security arrangements; negotiating the terms of the instrument; preparing
and processing documents; and closing the transaction, as well as origination fees received
on issuing financial liabilities measured at amortized cost. These fees are deferred and
recognized as an adjustment to the effective interest rate. However, in case the financial
instrument is classified as a financial asset at fair value through profit or loss, the relevant
fee is recognized as revenue when the instrument is initially recognized.
(b) Commission from significant act performed
The recognition of revenue is postponed until the significant act is executed.
(c) Unearned revenue from point programs (customer loyalty program)
The Group operates customer loyalty program to provide customers with incentives to buy
their goods or services. If a customer buys goods or services, the Group grants the customer
awards credits (often described as ‘points’). The customer can redeem the award credits for
awards, such as free or discounted goods or services. The awards credits are accounted
separately as identifiable component of the sales transaction(s) in which they are granted
(the ‘initial sales’). The fair value of the consideration received or receivable in respect of the
initial sale shall be allocated between the award credits and other components of the sale.
If the Group supplies the awards itself, it shall recognize the consideration allocated to award
credits as revenue when award credits are redeemed and it fulfills its obligation to supply
awards. The amount of revenue recognized shall be based on the number of award credits
that have been redeemed in exchange for awards related to the total number expected to be
redeemed. If the third party supplies the awards, the Group shall assess whether it is
collecting the consideration allocated to the award credits on its own account (as the
principal in the transaction ) or on behalf of the third party (as agent for the third party). The
amount of revenue recognized shall be net amount retained on its own account.

29
12) Interest income and expense
Using the effective interest rate method, the Group recognizes interest income and expense
in the consolidated statements of comprehensive income. Effective interest rate method
calculates the amortized cost of financial assets or liabilities and allocates interest income or
expense over the relevant period. The effective interest rate discounts the expected future
cash in and out through the expected life of financial instruments, or, if appropriate, through
shorter period, to net carrying amount of financial assets or liabilities. When calculating the
effective interest rate, the Group estimates future cash flows considering all contractual
financial instruments, except the loss on future credit risk. Also, effective interest rate
calculation includes redemption costs, points (part of the effective interest rate) that are paid
or earned between contracting parties, transaction costs and other premiums or discounts. It
is assumed that the cash flows and the expected existing period of aggregation of
homogeneous financial instruments are reliably estimable. However, in the exception that
cash flow of financial instruments (or aggregation of homogeneous financial instruments) or
the estimated maturity is not reliably estimable, the effective interest rate is calculated using
the contractual terms of cash flows for the entire contract period.
If financial instruments or aggregation of homogeneous financial instruments are impaired,
the subsequent interest income is recognized based on the discount rate used in discounting
future cash flows for the purpose of the measurement of impairments.
13) Dividend revenue
Dividend income from investments is recognized when the shareholders’ right to receive the
payment of dividends has been established.
14) Foreign currency translation
The individual financial statements of the consolidated entities are presented in the currency
of the primary economic environment in which the Group operates (its functional currency).
For the purpose of the consolidated financial statements, the results of operations and
financial position of each entity are expressed in Korean won, which is the functional
currency of the Parent Company and the presentation currency for the consolidated financial
statements.
In preparing the financial statements of the individual entities, transactions in currencies
other than the entity’s functional currency (foreign currencies) are recognized at the rates of
exchange prevailing at the date of the transactions. At the end of each reporting period,
monetary items denominated in foreign currencies are retranslated at the rates prevailing at
that date. Non-monetary items carried at fair value that are denominated in foreign
currencies are retranslated at the rates prevailing at the date when the fair value was
determined. Non-monetary items that are measured in terms of historical cost in a foreign
currency are not retranslated.

30
Exchange differences are recognized in profit (loss) for the period in which they arise, except
for exchange differences on transactions entered into in order to hedge certain foreign
currency risks. See Note 2. 9) for hedging accounting policies.
15) Retirement benefit costs
The Group operates both defined contribution and defined benefit pension plans.
Contributions to defined contribution plans are recognized as an expense when employees
have rendered service entitling them to the contributions.
For defined benefit 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. The remeasurements of net defined benefit liabilities consist of actuarial profit or loss
return on plan assets (excluding amounts included in net interest from net benefit obligations
(assets)) and changes in the asset recognition ceiling effect, and is recognized immediately
in other comprehensive income. Past service costs are recognized in the period in which the
plan is revised and net interest is calculated by applying the discount rate to the net defined
benefit obligation (asset) at the beginning of the period. The components of defined benefit
costs consist of service costs (current and past service costs and settlements), net interest
expenses (revenues) and remeasurements.
The Group recognizes service costs and net interest expense (income) in profit or loss, and
remeasurements in other comprehensive income. The profit or loss from plan curtailments is
treated as past service cost.
The retirement benefit obligation recognized in the consolidated statements of financial
position represents the present value of the defined benefit obligation, as adjusted for
unrecognized actuarial gains and losses and unrecognized past service cost and as reduced
by the fair value of plan assets. Any asset resulting from this calculation is limited to
unrecognized actuarial losses and past service cost, plus the present value of available
economic benefits of refunds and reductions in future contributions to the plan.
16) Taxation
Income tax consists of current tax and deferred tax.
(a) Current tax
The tax currently payable is based on taxable profit for the period. Taxable income differs
from profit (loss) before tax expenses as reported in the consolidated statement of
comprehensive income because of items of income or expense that are taxable or
deductible in other periods. The Group’s liability for current tax is calculated using tax rates
that have been enacted or substantively enacted by the end of the reporting period.
(b) Deferred tax

31
Deferred tax is recognized on temporary differences between the carrying amounts of assets
and liabilities in the consolidated financial statements and the corresponding tax bases used
in the computation of taxable income. Deferred tax liabilities are generally recognized for all
taxable temporary differences. Deferred income tax assets are generally recognized for all
deductible temporary differences to the extent it is probable that taxable income will be
available against which those deductible temporary differences can be utilized. Such
deferred tax assets and liabilities are not recognized if the taxable or deductible temporary
difference arises from goodwill or from the initial recognition (other than in a business
combination) of other assets and liabilities in a transaction that affects neither the taxable
income (taxable deficit) nor the accounting income.
Deferred tax liabilities are recognized for taxable temporary differences associated with
investments in subsidiaries and associates and interests in joint ventures, except where the
Group is able to control the reversal of the temporary difference and it is probable that the
temporary difference will not reverse in the foreseeable future. Deferred tax assets arising
from deductible temporary differences associated with such investments and interests are
only recognized to the extent it is probable that there will be sufficient taxable income against
which the benefits of the temporary differences can be utilized and they are expected to
reverse in the foreseeable future.
The carrying amount of deferred tax assets is reviewed at the end of each reporting period
and reduced to the extent it is no longer probable that sufficient taxable income will be
available to allow all or part of the asset to be recovered.
Deferred tax assets and liabilities are measured at the tax rates that are expected to be
applied in the period in which the liability is settled or the asset is realized, based on tax
rates (and tax laws) that have been enacted or substantively enacted by the end of the
reporting period. The measurement of deferred tax liabilities and assets reflects the tax
consequences that would follow from the manner in which the Group expects, at the end of
the reporting period, to recover or settle the carrying amount of its assets and liabilities.
The Group shall offset deferred tax assets and deferred tax liabilities if, and only if, the
Group has a legally enforceable right to set off current tax assets against current tax
liabilities and the deferred tax assets and the deferred tax liabilities relate to income taxes
levied by the same taxation authority on either the same taxable entity or different taxable
entities that intend either to settle current tax liabilities and assets on a net basis or realize
the assets and settle the liabilities simultaneously in each future period in which significant
amounts of deferred tax liabilities or assets are expected to be settled or recovered.
For the purpose of measuring deferred tax liabilities and deferred tax assets for investment
properties that are measured using the fair value model, the carrying amounts of such
properties are presumed to be recovered entirely through sale, unless the presumption is
rebutted. The presumption is rebutted when the investment property is depreciable and is
held within a business model, the objective of which is to consume substantially all of the
economic benefits embodied in the investment properties over time, rather than through sale.
(c) Current tax and deferred tax for the year

32
Current tax 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 tax and deferred tax are also recognized in other comprehensive income or directly
in equity. Where current tax or deferred tax arises from the initial accounting for a business
combination, the tax effect is included in the accounting for the business combination.
17) Earnings per share
Basic earnings per share is calculated by dividing net profit for the period available to
common shareholders by the weighted-average number of ordinary shares outstanding
during the year. Diluted earnings per share are calculated using the weighted-average
number of ordinary shares outstanding, adjusted to include the potentially dilutive effect of
common equivalent shares outstanding.
18) Fair value
Fair value is the price that would be received to sell an asset or paid to transfer a liability in
an orderly transaction between market participants at the measurement date, regardless of
whether that price is directly observable or estimated using another valuation technique. In
estimating the fair value of an asset or a liability, the Group takes into account the
characteristics of the asset or liability if market participants would take those characteristics
into account when pricing the asset or liability at the measurement date. Fair value for
measurement and/or disclosure purposes in these consolidated financial statements is
determined on such a basis, except for share-based payment transactions that are within the
scope of K-IFRS 1102, Share-Based Payment; leasing transactions that are within the scope
of K-IFRS 1017, Leases; and measurements that have some similarities to fair value, but are
not fair value, such as net realizable value in K-IFRS 1002, Inventories, or value in use in K-
IFRS 1036, Impairment of Assets.
In addition, for financial reporting purposes, fair value measurements are categorized into
Level 1, 2 or 3, based on the degree to which the inputs to the fair value measurements are
observable and the significance of the inputs to the fair value measurement in its entirety,
which are described as follows:
• Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or
liabilities that the entity can access at the measurement date;
• Level 2 inputs are inputs, other than quoted prices included within Level 1, that are
observable for the asset or liability, either directly or indirectly; and
• Level 3 inputs are unobservable inputs for the asset or liability.
3. Significant Accounting Estimates and Assumptions
In the application of the Group’s accounting policies, which are described in Note 2,
management is required to make judgments, estimates and assumptions about the carrying

33
amounts of assets and liabilities that are not readily apparent from other sources. The
estimates and associated assumptions are based on historical experience and other factors
that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to
accounting estimates are recognized in the period in which the estimate is revised if the
revision affects only that period or in the period of the revision and future periods if the
revision affects both current and future periods.
3.1 Critical judgments in applying accounting policies
The following are the critical judgments, apart from those involving estimations (see Note 3.2)
that the directors have made in the process of applying the Group’s accounting policies and
that have the most significant effect on the amounts recognized in the consolidated financial
statements.
1) Judgments in applying consolidation
The Parent Company has a 0.5% ownership interest in Privia 4th Securitization Specialty
Co., Ltd., Privia 5th Securitization Specialty Co., Ltd., Super Series 1st Securitization
Specialty Co., Ltd., Super Series 2nd Securitization Specialty Co., Ltd., Super Series 3rd
Securitization Specialty Co., Ltd., Super Series 4rd Securitization Specialty Co., Ltd. and
Super Series 5rd Securitization Specialty Co., Ltd. The directors of the Parent Company
made an assessment as to whether the Parent Company has control over Privia 4th
Securitization Specialty Co., Ltd., Privia 5th Securitization Specialty Co., Ltd. and Super
Series 1st Securitization Specialty Co., Ltd., Super Series 2nd Securitization Specialty Co.,
Ltd., Super Series 3rd Securitization Specialty Co., Ltd., Super Series 4rd Securitization
Specialty Co., Ltd. and Super Series 5rd Securitization Specialty Co., Ltd. in accordance with
the definition of control and the related guidance set out in K-IFRS 1110. It is concluded that
the Parent Company has control over subsidiaries as it involves in the objectives and design
of the subsidiaries and is exposed to their parts of risks and rewards. Also, all the decision-
making processes of the subsidiaries are operated on autopilot by provisions and articles of
association, and the Parent Company is considered to have an ability to use power because
the Parent Company has control over the changes in provisions and articles of association.
Therefore, the directors concluded that it has control over the subsidiaries. Details of this
control assessment are set out in Note 4.
3.2 Key sources of estimation uncertainty
Critical accounting judgment and key sources of estimation uncertainty at the end of
reporting period having significant risk factors that can incur the material changes in the book
amount of assets and liabilities of the Group for the following fiscal year are as follows:
1) Provision for impairment
The Group determines and recognizes provision for impairment through impairment testing
on credit card assets and other assets, such as other receivables, advance payments and
accrued income. The Group also recognizes provisions for impairment of unused

34
commitments. The accuracy of provision for impairment/provisions for credit losses is
determined by the risk assessment methodology and assumptions used for estimating
expected cash flows of the borrower for allowances on individual loans and collectively
assessing allowances for groups of loans and provisions for unused commitments.
2) Unearned revenue from point programs
The Group provides its customers with incentives to buy goods or services by providing
awards (customer loyalty programs) and allocates the fair value of the consideration
received or receivable between the award credits granted (points) and the other components
of the revenue transaction. The Group supplies the awards, such as discounted payments or
free gifts. The consideration allocated to the award credits is measured by reference to their
fair value, i.e., the amount for which the award credits could be sold separately. The fair
value of the consideration allocated to the award credits is estimated by taking into account
expected redemption rates, etc., and recognized as deferred revenue, until the Group fulfills
its obligations to deliver awards to customers. The amount of revenue recognized is to be
based on the number of award credits that have been redeemed in exchange for awards,
relative to the total number expected to be redeemed.
3) Postemployment Benefits: Defined Benefit Plans
The Group operates a defined benefit pension plan (“Plan”). The amount recognized as a
defined benefit liability is the present value of the defined benefit obligation, less the fair
value of Plan assets at the end of the reporting period. The present value of defined benefit
obligation is calculated annually by using actuarial assumptions, such as future increases in
salaries, expected returns on plan assets, discount rate and others. The Plan has the
uncertainty due to the nature of long-term plan. The net defined benefit liability as at
December 31, 2017 and 2016, is ￦9,124 million and ￦14,106 million, respectively (see
Note 13).
4) Fair Value Measurement of Financial Instruments
As disclosed in Note 31, the fair value of financial instruments classified as certain level is
measured using valuation techniques where significant inputs are not based on observable
market data. The Group believes that valuation methods and assumptions used for
measuring the fair value of financial instruments are reasonable and that the fair value
recognized in the consolidated statements of financial position is appropriate.
5) Income taxes
If certain portion of the taxable income is not used for investments or increase in wages or
dividends in accordance with the Tax System For Recirculation of Corporate Income, the
Group is liable to pay additional income tax calculated based on the tax laws. The new tax
system is effective for three years from 2015. Accordingly, the measurement of current and
deferred income tax is affected by the tax effects from the new tax system. As the Group’s
income tax is dependent on the investments, increase in wages and dividends, there is an

35
uncertainty measuring the final tax effects.
4. Consolidated Subsidiaries
Details of the consolidated subsidiaries as at December 31, 2017 and 2016, are as follows:
Ownership interest held
by the Group (%)
Main business Location 2017 2016
Closing
month
Privia 4th SPC1 Asset securitization Korea 0.5 0.5 December
Privia 5th SPC1 Asset securitization Korea 0.5 0.5 December
Super Series 1st SPC1 Asset securitization Korea 0.5 0.5 December
Super Series 2nd SPC1 Asset securitization Korea 0.5 0.5 December
Super Series 3rd SPC1 Asset securitization Korea 0.5 0.5 December
Super Series 4th SPC1 Asset securitization Korea 0.5 - December
Super Series 5th SPC1 Asset securitization Korea 0.5 - December
Bluewalnut Co., Ltd. Electronic banking Korea 100.0 100.0 December
Money Market Trust Trust business Korea 100.0 100.0 -
1 In determining power over subsidiaries except for Bluewalnut Co., Ltd. and Money Market
Trust, voting rights or similar rights are not major components, accordingly, these
subsidiaries are considered as structured entities.
Above subsidiaries except for Money Market Trust and Bluewalnut Co., Ltd. are special
purpose companies (SPCs) that were established for business activities of consolidated
entities. The Parent Company, Hyundai Card Co., Ltd., is considered to have control over
SPCs as the Parent Company has involved in purpose and design of SPC establishments
and the Parent Company is exposed to certain risks and rewards of SPCs. Also, all the
decision-making processes of SPCs are operated on autopilot by arrangements and articles
of association, and the Parent Company has ability to make changes in arrangements and
articles of association. Accordingly, the Parent Company included SPCs under consolidation.
Meanwhile, when event of default occurs from derivative contracts regarding asset-backed
securities issued by SPCs, counterparties of the derivative contracts can claim for
reimbursement from the Parent Company.

36
Details of the Group’s subsidiaries as at December 31, 2017 and 2016, are as follows:
(in millions of Korean 2017
won)
Assets Liabilities
Operating
income
Profit (loss) for
the period
Comprehensive
income (loss)
Privia 4th SPC 24 - 25,201 24 -
Privia 5th SPC 100,088 100,088 7,135 - -
Super Series 1st SPC 461,098 461,214 63,411 - 2,808
Super Series 2nd SPC 300,115 300,115 5,369 - -
Super Series 3rd SPC 467,595 464,667 62,745 - 2,120
Super Series 4th SPC 341,611 339,229 24,599 - 1,809
Super Series 5th SPC 318,152 321,061 8,227 - (2,210)
Bluewalnut Co., Ltd. 11,007 6,845 1,355 (2,699) (2,706)
Money Market Trust 641,195 - 195 195 195
(in millions of Korean 2016
won)
Assets Liabilities
Operating
income
Profit (loss) for
the period
Comprehensive
income (loss)
Privia 4th SPC 349,435 350,761 19,826 - 1,286
Privia 5th SPC 300,265 300,265 7,997 - -
Super Series 1st SPC 479,865 483,677 23,191 - (1,517)
Super Series 2nd SPC 300,086 300,086 2,821 - -
Super Series 3rd SPC 483,594 483,456 16,875 - 104
Bluewalnut Co., Ltd. 6,874 6 1 (132) (132)
Money Market Trust 650,803 - 803 803 803
Summary of newly included subsidiaries for the year ended December 31, 2017, is as
follows:
Subsidiary Reason
Super Series 4th SPC Newly established
Super Series 5th SPC Newly established
Non-controlling interests
Non-controlling interests of consolidated special-purpose company (“SPC”) have been
measured at initial acquisition cost because they do not have any right of residual income.
Also, the Group does not state non-controlling interests as capital, but as liability.

37
5. Cash and Deposits
Details of cash and cash equivalents as at December 31, 2017 and 2016, are as follows:
(in millions of Korean 2017 2016
won) Annual
interest rate
(%) Amount
Annual
interest rate
(%) Amount
Current deposit - 223 - 362
Ordinary deposit - 225,278 - 116,199
Time deposit 1.60~1.65 15,000 0.90 4,800
Other cash and cash
equivalents - 413,911 - 423,433
654,412 544,794
Details of restricted financial assets as at December 31, 2017 and 2016, are as follows:
(in millions of Korean won) 2017 2016 Description
Cash and
deposits
Kookmin Bank and 5
others 18 18
Guarantee deposits for
overdraft
Shinhan Bank and 6
others 23,100 30,300
Secured deposits
Mirae Asset Securities 7 7 Social enterprise fund
Citibank
81,910 27,979
Deposits related to
securitization
Other financial
assets
Korea Asset Management
7,193 7,123
Escrow account in relation
to a sale of Daewoo
Engineering &
Construction Co., Ltd.
112,228 65,427

38
6. Securities
Securities as at December 31, 2017 and 2016, are as follows:
(in millions of Korean won) 2017 2016
Financial assets held for trading
Debt securities 853,461 814,396
Equity securities 140,005 120,015
993,466 934,411
Available-for-sale financial assets
Unlisted equity securities 1,767 1,767
1,767 1,767
995,233 936,178

39
7. Card Assets
Details of card assets by customers as at December 31, 2017 and 2016, are as follows:
(in millions of 2017
Korean won)
Principal
Deferred
origination
cost and fee
Present
value of
discounts
Provision for
impairment
Carrying
amount
Card receivables
Household 8,098,720 (16,004) (10,749) (80,973) 7,990,994
Corporates 649,206 - - (3,365) 645,841
Cash advances
Household 847,332 - - (28,342) 818,990
Card loans
Household 3,487,114 - (639) (184,475) 3,302,000
13,082,372 (16,004) (11,388) (297,155) 12,757,825
Korean won)
Principal
Deferred
origination
cost and fee
Present
value of
discounts
Provision for
impairment
Carrying
amount
Card receivables
Household 7,720,393 (12,756) (7,929) (83,019) 7,616,689
Corporates 569,827 - - (2,868) 566,959
Cash advances
Household 854,784 - - (30,728) 824,056
Card loans
Household 3,220,050 - (732) (167,123) 3,052,195
12,365,054 (12,756) (8,661) (283,738) 12,059,899

40
8. Provisions for Impairment
Changes in provisions for impairment for the periods ended December 31, 2017 and 2016,
are as follows:
Korean won) Card
receivables
Cash
advances Card loans Other assets Total
Beginning balance 85,887 30,728 167,123 3,437 287,175
Written-off (3,202) (1,224) (4,101) - (8,527)
Recoveries 417 204 278 - 899
Disposal and repurchase (23,438) (12,706) (26,885) - (63,029)
Additional (reversal of)
provisions 24,674 11,340 48,060 (1,262) 82,812
Ending balance 84,338 28,342 184,475 2,175 299,330
Korean won) Card
receivables
Cash
advances Card loans Other assets Total
Beginning balance 76,701 32,868 145,917 3,213 258,699
Written-off (1,061) (328) (747) - (2,136)
Recoveries 405 530 212 - 1,147
Disposal and repurchase (23,705) (13,649) (24,486) - (61,840)
Additional (reversal of)
provisions 33,547 11,307 46,227 224 91,305
Ending balance 85,887 30,728 167,123 3,437 287,175
Losses on disposal of trade receivables amount to ￦150,382 million and ￦154,938 million
for the periods ended December 31, 2017 and 2016, respectively.

2017 y ar_en

Recommended

Recommended

More Related Content

What's hot

What's hot (19)

Similar to 2017 y ar_en

Similar to 2017 y ar_en (20)

More from Hyundai Finance

More from Hyundai Finance (20)

Recently uploaded

Recently uploaded (20)

2017 y ar_en