2q2019auditreporthcc

Hyundai Card Co., Ltd. and Subsidiaries
Consolidated Interim Financial Statements
June 30, 2019 and 2018

Index
June 30, 2019 and 2018
Page(s)
Report on Review of Interim Financial Statements ............................................. 1 - 2
Consolidated Interim Financial Statements
Consolidated Interim Statements of Financial Position ............................................ 3 - 4
Consolidated Interim Statements of Comprehensive Income .................................... 5
Consolidated Interim Statements of Changes in Equity............................................. 6
Consolidated Interim Statements of Cash Flows....................................................... 7
Notes to the Consolidated Interim Financial Statements ......................................... 8 - 57

Report on Review of Interim Financial Statements
(English Translation of a Report Originally Issued in Korean)
To the Board of Directors and Shareholders of
Hyundai Card Co., Ltd.
Reviewed Financial Statements
We have reviewed the accompanying consolidated interim financial statements of Hyundai Card Co., Ltd.
and its subsidiaries (collectively referred to as the “Group”). These financial statements consist of the
consolidated interim statement of financial position of the Group as at June 30, 2019, and the related
consolidated interim statements of comprehensive income, changes in equity and cash flows for the six-
month periods ended June 30, 2019 and 2018, and a summary of significant accounting policies and
other explanatory notes, expressed in Korean won.
Management's Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these consolidated interim
financial statements in accordance with International Financial Reporting Standards as adopted by the
Republic of Korea (Korean IFRS) 1034 Interim Financial Reporting, and for such internal control as
management determines is necessary to enable the preparation of consolidated interim financial
statements that are free from material misstatement, whether due to fraud or error.
Auditor's Responsibility
Our responsibility is to issue a report on these consolidated interim financial statements based on our
review.
We conducted our review in accordance with quarterly or semi-annual review standards established by
the Securities and Futures Commission of the Republic of Korea. A review of interim financial information
consists of making inquiries, primarily of persons responsible for financial and accounting matters, and
applying analytical and other review procedures. A review is substantially less in scope than an audit
conducted in accordance with Korean Standards on Auditing and consequently does not enable us to
obtain assurance that we would become aware of all significant matters that might be identified in an
audit. Accordingly, we do not express an audit opinion.

Conclusion
Based on our review, nothing has come to our attention that causes us to believe the accompanying
consolidated interim financial statements are not presented fairly, in all material respects, in accordance
with Korean IFRS 1034 Interim Financial Reporting.
Other Matters
We have audited the consolidated statement of financial position of the Group as at December 31, 2018,
and the related consolidated statements of comprehensive income, changes in equity and cash flows for
the year then ended, in accordance with Korean Standards on Auditing. We expressed an unqualified
opinion on those financial statements, not presented herein, in our audit report dated March 4, 2019. The
consolidated statement of financial position as at December 31, 2018, presented herein for comparative
purposes, is consistent, in all material respects, with the above audited statement of financial position as
at December 31, 2018.
Review standards and their application in practice vary among countries. The procedures and practices
used in the Republic of Korea to review such financial statements may differ from those generally
accepted and applied in other countries.
August 12, 2019
Seoul, Korea
This report is effective as of August 12, 2019, the review report date. Certain subsequent events or
circumstances, which may occur between the review report date and the time of reading this report,
could have a material impact on the accompanying consolidated interim 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.
2

Consolidated Interim Statements of Financial Position
June 30, 2019 and December 31, 2018
(in Korean won) Notes
Assets
Cash and deposits 5,24,29,30
Cash and cash equivalents 1,159,133,179,083 866,456,158,726
Deposits 60,518,000,000 81,020,600,000
1,219,651,179,083 947,476,758,726
Securities 6,29,30
Financial assets at fair value through profit or loss 1,007,667,684,823 1,062,236,051,228
Financial assets at fair value through
other comprehensive income 1,483,575,000 1,483,575,000
1,009,151,259,823 1,063,719,626,228
Card assets 7,8,26,27,29,30
Card receivables 9,361,386,253,112 8,944,174,092,584
Provision for impairment (132,245,198,858) (136,445,744,103)
Short-term card loan 634,743,246,525 672,551,582,786
Long-term card loan 3,673,834,389,643 3,760,950,975,776
13,268,071,060,158 12,978,385,812,653
Loan receivables 7,8,29,30
Loan receivables 9,725,563,989 20,237,677,918
Provision for impairment (495,321,840) (1,117,573,780)
9,230,242,149 19,120,104,138
Property and equipment 9,26
Land 139,408,257,581 139,408,257,581
Buildings 148,414,130,150 148,387,377,420
Accumulated depreciation (23,260,607,184) (21,396,434,154)
Vehicles 2,514,088,391 2,514,088,391
Accumulated depreciation (874,904,965) (794,289,535)
Fixtures and equipment 247,424,413,612 242,327,218,894
Accumulated depreciation (185,740,536,200) (175,774,946,955)
Construction in progress 1,162,374,058 3,599,566,560
329,047,215,443 338,270,838,202
Assets held for sale
Land - 1,727,335,826
Buildings - 3,975,627,372
- 5,702,963,198
Other assets
Other receivables 29,30 104,826,470,327 98,918,681,647
Provision for impairment (229,020,233) (262,506,636)
Accrued revenue 29,30 44,638,955,756 48,589,739,174
Advance payments 42,036,858,424 29,862,799,219
Provision for impairment (205,735,094) (197,016,013)
Prepaid expenses 101,952,315,720 122,876,559,542
Intangible assets 10,26 95,758,486,414 106,586,305,737
Right-of-use assets 34 52,053,474,616 -
Derivative assets 14,28,29,30 14,155,594,318 2,793,189,773
Deferred tax assets 23 157,301,993,493 147,563,840,293
Guarantee deposits provided 5,29,30 27,427,040,763 32,713,839,922
Others 10,049,312,623 5,758,089,606
647,927,420,728 593,103,852,396
Total assets 16,483,078,377,384 15,945,779,955,541
December 31, 2018June 30, 2019
(Unaudited)
3

Consolidated Interim Statements of Financial Position
June 30, 2019 and December 31, 2018
(in Korean won)
Liabilities
Borrowings 11,25,29,30
Borrowings 2,735,000,000,000 3,015,000,000,000
Debentures 8,230,506,089,742 7,498,362,444,609
10,965,506,089,742 10,513,362,444,609
Other liabilities
Other payables 26,29,30 1,426,386,437,526 1,312,587,488,460
Accrued expenses 29,30 125,920,301,624 161,108,908,877
Unearned revenue 372,003,580,075 363,515,010,711
Withholdings 29,30 97,913,483,520 209,863,467,921
Lease liabilities 26,29,30,34 48,313,417,489 -
Derivative liabilities 14,28,29,30 27,601,133,366 46,799,148,674
Current tax liabilities 36,742,054,503 24,283,650,805
Deferred tax liabilities - 5,688,074
Net employee benefit liabilities 12 10,729,026,238 1,449,519,669
Guarantee deposits received 29,30 9,996,261,021 9,997,529,270
Provisions 13,25 107,023,847,264 111,699,625,804
2,262,629,542,626 2,241,310,038,265
Total liabilities 13,228,135,632,368 12,754,672,482,874
Equity
Share capital 15 802,326,430,000 802,326,430,000
Reserves 57,704,443,955 57,704,443,955
Hybrid securities 15 299,239,980,000 299,239,980,000
Accumulated other comprehensive income 17 (43,584,397,652) (23,455,255,045)
Retained earnings 16,18 2,139,256,288,713 2,055,291,873,757
Total equity 3,254,942,745,016 3,191,107,472,667
Total liabilities and equity 16,483,078,377,384 15,945,779,955,541
The above consolidated interim statements of financial position should be read in conjunction with the accompanying notes.
The consolidated interim statement of financial position as at December 31, 2018 has been prepared in accordance with Korean IFRS 1017, the previous standard.
(Unaudited)
June 30, 2019 December 31, 2018
4

Consolidated Interim Statements of Comprehensive Income
Three-Month and Six-Month Periods Ended June 30, 2019 and 2018
Notes
Operating income
Card income 19,26 324,052,972,449 634,086,971,758 316,313,079,396 608,949,023,885
Effective interest method interest income 20 253,552,912,428 505,765,693,204 267,323,215,238 531,359,205,555
Gain on valuation and disposal of securities 341,415,831 2,597,432,478 1,197,130,184 1,685,346,102
Dividend income 30,020,435 30,020,435 - 480,125,631
Decrease in provision for unused credit limits 13 - - (1,518,567,114) 6,803,141,464
Other operating income 21,26 47,451,576,698 94,366,963,642 79,574,359,097 104,087,096,101
625,428,897,841 1,236,847,081,517 662,889,216,801 1,253,363,938,738
Operating expenses
Card expenses 19,26 210,860,882,866 423,450,059,353 212,504,805,368 435,817,843,393
Interest expenses 20 63,738,009,770 126,811,188,844 65,645,152,056 129,007,869,453
Selling and administrative expenses 12,22,26 161,958,135,537 328,104,797,846 180,759,502,235 364,915,804,577
Securitization expenses 236,063,620 402,609,142 272,724,876 452,026,063
Impairment losses 44,493,856,971 64,905,160,185 28,830,576,993 55,276,585,698
Loss on disposal of loan receivables 33,060,957,448 69,793,993,750 36,581,735,929 80,314,579,683
Loss on valuation and disposal of securities - - 58,100,000 58,100,000
Increase in provision for unused credit limits 13 2,144,617,470 2,603,129,008 - -
Other operating expenses 21,26 35,515,777,102 69,271,920,342 71,208,175,924 90,192,579,218
552,008,300,784 1,085,342,858,470 595,860,773,381 1,156,035,388,085
Operating profit 73,420,597,057 151,504,223,047 67,028,443,420 97,328,550,653
Non-operating income
Gain on disposal of property and equipment, and intangible assets 3,607,721 3,607,721 21,612,053 236,610,053
Gain on disposal of assets held for sale - 697,036,802 - -
Rental income 26 991,033,255 1,864,672,365 837,692,547 1,686,609,946
Miscellaneous gain 214,394,073 407,186,721 174,728,046 458,516,751
1,209,035,049 2,972,503,609 1,034,032,646 2,381,736,750
Non-operating expenses
Loss on disposal of property and equipment, and intangible assets 4,616,875 42,817,236 10,102,215 138,196,235
Donations 127,316,800 160,554,189 12,424,000 282,878,144
Miscellaneous losses - 1,975,953 - -
131,933,675 205,347,378 22,526,215 421,074,379
Profit before income tax expense 74,497,698,431 154,271,379,278 68,039,949,851 99,289,213,024
Income tax expense 23 16,849,320,558 32,449,734,642 16,735,437,010 21,899,063,410
Profit for the period 57,648,377,873 121,821,644,636 51,304,512,841 77,390,149,614
Other comprehensive income 17
Items that will not be reclassified to profit or loss
Remeasurements of net defined benefit liabilities (1,491,713,666) (2,525,236,088) (2,559,007,389) (2,007,450,823)
Items that may be subsequently reclassified to profit or loss
Cash flow hedges (18,585,477,005) (17,603,906,519) (6,791,124,028) (12,866,117,786)
(20,077,190,671) (20,129,142,607) (9,350,131,417) (14,873,568,609)
Total comprehensive income for the period 37,571,187,202 101,692,502,029 41,954,381,424 62,516,581,005
Earnings per share 31
Basic earnings per share 337 715 320 482
Diluted earnings per share 337 715 320 482
Period Ended June 30
(in Korean won)
2019
(Unaudited)
2018
(Unaudited)
Three months Six months Three months Six months
The consolidated interim statement of comprehensive income for the three-month and six-month periods ended June 30, 2018 has been prepared in accordance with Korean IFRS 1017, the previous standard.
The above consolidated interim statements of comprehensive income should be read in conjunction with the accompanying notes.
5

HyundaiCardCo.,Ltd.andSubsidiaries
ConsolidatedInterimStatementsofChangesinEquity
Six-MonthPeriodsEndedJune30,2019and2018
(inKoreanwon)
BalanceatJanuary1,2018802,326,430,00045,399,364,53912,305,079,416-(6,182,687,024)2,016,527,869,1682,870,376,056,099
Changesinaccountingpolicies-----(84,783,531,365)(84,783,531,365)
Restatedtotalequityatthebeginningofthefinancialyear802,326,430,00045,399,364,53912,305,079,416-(6,182,687,024)1,931,744,337,8032,785,592,524,734
Dividendspaid-----(19,416,299,606)(19,416,299,606)
Totalcomprehensiveincome
Profitfortheperiod-----77,390,149,61477,390,149,614
Othercomprehensiveincome
Remeasurementsofnetdefinedbenefitliabilities----(2,007,450,823)-(2,007,450,823)
Cashflowhedges----(12,866,117,786)-(12,866,117,786)
BalanceatJune30,2018(Unaudited)802,326,430,00045,399,364,53912,305,079,416-(21,056,255,633)1,989,718,187,8112,828,692,806,133
BalanceatJanuary1,2019802,326,430,00045,399,364,53912,305,079,416299,239,980,000(23,455,255,045)2,055,291,873,7573,191,107,472,667
Dividendspaid-----(30,809,334,912)(30,809,334,912)
Totalcomprehensiveincome
Profitfortheperiod-----121,821,644,636121,821,644,636
Othercomprehensiveincome
Remeasurementsofnetdefinedbenefitliabilities----(2,525,236,088)-(2,525,236,088)
Cashflowhedges----(17,603,906,519)-(17,603,906,519)
Transactionswithshareholdersrecognizeddirectlyinequity
Distributionfromhybridsecurities-----(7,047,894,768)(7,047,894,768)
BalanceatJune30,2019(Unaudited)802,326,430,00045,399,364,53912,305,079,416299,239,980,000(43,584,397,652)2,139,256,288,7133,254,942,745,016
Theconsolidatedinterimstatementofchangesinequityforthesix-monthperiodendedJune30,2018hasbeenpreparedinaccordancewithKoreanIFRS1017,thepreviousstandard.
Retained
capitalpremiumreservessecuritiescomprehensiveincomeearningsTotal
ReservesAccumulated
ShareShareOtherHybridother
Theaboveconsolidatedinterimstatementsofchangesinequityshouldbereadinconjunctionwiththeaccompanyingnotes.
6

Consolidated Interim Statements of Cash Flows
Six-Month Periods Ended June 30, 2019 and 2018
(in Korean won) Notes
Cash flows from operating activities
Cash generated from (provided by) operating activities 24 82,099,808,236 (175,437,290,424)
Interests received 12,811,548,181 11,827,316,773
Interests paid (112,571,414,834) (155,258,819,483)
Dividends received 30,020,435 480,125,631
Income taxes paid (23,225,162,850) (40,096,455,780)
Net cash outflow from operating activities (40,855,200,832) (358,485,123,283)
Cash flows from investing activities
Disposal of financial assets at fair value through profit or loss - 30,289,700
Disposal of assets held for sale 6,400,000,000 -
Disposal of property and equipment 3,620,000 237,626,544
Acquisition of financial assets at fair value through profit or loss (1,596,000,000) (1,400,000,000)
Acquisition of property and equipment (11,812,168,267) (14,753,686,524)
Acquisition of intangible assets (13,169,505,984) (16,993,746,613)
Net decrease in guarantee deposits provided 5,757,119,408 2,256,656,631
Net cash outflow from investing activities (14,416,934,843) (30,622,860,262)
Cash flows from financing activities
Proceeds from borrowings 970,000,000,000 1,720,000,000,000
Proceeds from issue of debentures 4,720,121,596,879 7,200,752,809,641
Repayment of borrowings (1,250,000,000,000) (1,290,000,000,000)
Repayment of debentures (4,045,399,997,696) (6,941,000,000,000)
Repayment of lease liabilities (8,917,170,575) -
Dividends paid (30,805,272,576) (19,416,299,606)
Distribution from hybrid securities (7,050,000,000) -
Net cash inflow from financing activities 347,949,156,032 670,336,510,035
Net increase in cash and cash equivalents 292,677,020,357 281,228,526,490
Cash and cash equivalents at the beginning of the period 24 866,456,158,726 654,412,163,620
Cash and cash equivalents at the end of the period 24 1,159,133,179,083 935,640,690,110
Six-month period ended June 30
(Unaudited) (Unaudited)
2019 2018
The consolidated interim statement of cash flows for the six-month period ended June 30, 2018
has been prepared in accordance with Korean IFRS 1017, the previous standard.
The above consolidated interim statements of cash flows should be read in conjunction with the accompanying notes.
7

Notes to the Consolidated Interim Financial Statements
June 30, 2019 and 2018 (Unaudited), and December 31, 2018
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 June 30, 2019, the Company has approximately 8.08 million card members, 2.65 million
registered merchants, and 53 marketing centers and branches.
As at June 30, 2019, the total ordinary shares of the Company is 802,326 million after
several capital increase and retirement of treasury shares. The shareholders as at June 30,
2019 and December 31, 2018, are as follows:
June 30, 2019 December 31, 2018
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. 39,378,026 24.54% 39,378,026 24.54%
Consumer Preferred Choice Limited 16,046,527 9.99% 16,046,527 9.99%
Complete Logistic Solutions Limited 14,441,876 9.00% 14,441,876 9.00%
AlpInvest Partners Co-Investments 2015
I SPV B.V. 7,101,393 4.43% 7,101,393 4.43%
AlpInvest Partners Co-Investments 2015
II SPV B.V. 707,652 0.44% 707,652 0.44%
AlpInvest Mich SPV B.V. 214,221 0.14% 214,221 0.14%
Others 4,851,512 3.02% 4,851,512 3.02%
160,465,286 100.00% 160,465,286 100.00%
8

2. Significant Accounting Policies
2.1 Basis of preparation
The Group maintains its accounting records in Korean won and prepares statutory financial
statements in the Korean language (Hangul) in accordance with International Financial
Reporting Standards as adopted by the Republic of Korea (Korean IFRS). The accompanying
consolidated interim financial statements have been condensed, restructured and translated
into English from the Korean language financial statements.
Certain information attached to the Korean language financial statements, but not required for
a fair presentation of the Group's financial position, financial performance or cash flows, is not
presented in the accompanying consolidated interim financial statements.
The Group’s consolidated interim financial statements for the six-month period ended June 30,
2019, have been prepared in accordance with Korean IFRS 1034 Interim Financial Reporting.
These condensed consolidated interim financial statements have been prepared in
accordance with Korean IFRS which is effective or early adopted as at June 30, 2019.
(a) New standards and interpretations adopted by the Group
The Group has applied the following standards and interpretations for the first time for their
annual reporting period commencing January 1, 2019.
- Enactment of Korean IFRS 1116 Leases
Korean IFRS 1116 Leases replaces Korean IFRS 1017 Leases. Under Korean IFRS 1116,
with implementation of a single lease model, lessee is required to recognize assets and
liabilities for all lease which lease term is over 12 months and underlying assets are not low
value assets. A lessee is required to recognize a right-of-use asset and a lease liability
representing its obligation to make lease payments.
With implementation of Korean IFRS 1116 Lease, the Group has changed accounting policy.
The Group has adopted Korean IFRS 1116 retrospectively, as permitted under the specific
transitional provisions in the standard, and recognized the cumulative impact of initially
applying the standard as at January 1, 2019, the date of initial application. The Group has
not restated comparatives for the 2018 reporting period. The impact of the adoption of the
leasing standard and the new accounting policies are disclosed in Note 34.
- Amendments to Korean IFRS 1109 Financial Instruments
The narrow-scope amendments made to Korean IFRS 1109 Financial Instruments enable
entities to measure certain prepayable financial assets with negative compensation at
amortized cost. When a modification of a financial liability measured at amortized cost that
does not result in the derecognition, a modification gain or loss shall be recognized in profit
or loss. The amendment does not have a significant impact on the financial statements.
9

- Amendments to Korean IFRS 1019 Employee Benefits
The amendments require that an entity shall calculate current service cost and net interest
for the remainder of the reporting period after a plan amendment, curtailment or settlement
based on updated actuarial assumptions from the date of the change. The amendments also
require that a reduction in a surplus must be recognized in profit or loss even if that surplus
was not previously recognized because of the impact of the asset ceiling. The amendment
does not have a significant impact on the financial statements.
- Amendments to Korean IFRS 1028 Investments in Associates and Joint Ventures
The amendments clarify that an entity shall apply Korean IFRS 1109 to financial instruments
in an associate or joint venture to which the equity method is not applied. These include
long-term interests that, in substance, form part of the entity’s net investment in an associate
or joint venture. The amendment does not have a significant impact on the financial
statements.
- Enactment to Interpretation of Korean IFRS 2123 Uncertainty over Income Tax Treatments
The Interpretation explains how to recognize and measure deferred and current income tax
assets and liabilities where there is uncertainty over a tax treatment, and includes guidance
on how to determine whether each uncertain tax treatment is considered separately or
together. It also presents examples of circumstances where a judgement or estimate is
required to be reassessed. The enactment does not have a significant impact on the
financial statements.
- Annual Improvements to Korean IFRS 2015 – 2017 Cycle:
x Korean IFRS 1103 Business Combination
The amendments clarify that when a party to a joint arrangement obtains control of a
business that is a joint operation, and has rights to the assets and obligations for the
liabilities relating to that joint operation immediately before the acquisition date, the
transaction is a business combination achieved in stages. In such cases, the acquirer shall
remeasure its entire previously held interest in the joint operation. The amendment does not
have a significant impact on the financial statements.
x Korean IFRS 1111 Joint Agreements
The amendments clarify that when a party that participates in, but does not have joint control
of, a joint operation might obtain joint control of the joint operation in which the activity of the
joint operation constitutes a business. In such cases, previously held interests in the joint
operation are not remeasured. The amendment does not have a significant impact on the
10

x Paragraph 57A of Korean IFRS 1012 Income Tax
The amendment is applied to all the income tax consequences of dividends and requires an
entity to recognize the income tax consequences of dividends in profit or loss, other
comprehensive income or equity according to where the entity originally recognized those
past transactions or events. The amendment does not have a significant impact on the
x Korean IFRS 1023 Borrowing Costs
The amendments clarify that if a specific borrowing remains outstanding after the related
qualifying asset is ready for its intended use (or sale), it becomes part of general borrowings.
The amendment does not have a significant impact on the financial statements.
(b) New standards and interpretations not yet adopted by the Group
There are no new accounting standards and interpretations that have been published that
are not mandatory for annual reporting period commencing January 1, 2019 and have not
been early adopted by the Group.
2.2 Significant Accounting Policies
Significant accounting policies and method of computation used in the preparation of the
condensed consolidated interim financial statements are consistent with those of the
consolidated financial statements for the year ended December 31, 2018, except for the
changes due to the application of amendment and enactments of standards described in
Note 2.1. (a) and the one described below.
2.2.1 Income Tax Expense
Income tax expense for the interim period is recognized based on management’s best
estimate of the weighted average annual income tax rate expected for the full financial year.
The estimated average annual tax rate is applied to the pre-tax income.
2.2.2 Reclassification of Card Income and Others
In order to increase comparability with financial statements for the six-month period ended
June 30, 2019, the Group recognized the serviced amount provided to card members as a
reduction of revenue, which was previously recognized as expenses in the consolidated
statement of comprehensive income for the six-month period ended June 30, 2018 in
accordance with Korean IFRS 1115 Revenue from Contracts with Customers. The
reclassification has no effect on the reported net income and net assets for the six-month
period ended June 30, 2018 (Note 19).
11

3. Critical Accounting Estimates and Assumptions
The Group makes estimates and assumptions concerning the future. Estimates and
assumptions are continually evaluated and are based on historical experience and other
factors, including expectations of future events that are believed to be reasonable under the
current circumstances. Actual results may differ from these estimates.
Significant accounting estimates and assumptions applied in the preparation of these
condensed consolidated interim financial statements are the same as those that applied to
the consolidated financial statements for the year ended December 31, 2018, except for the
changes due to the application of amendment and enactments of standards described in
Note 2.1 (a) and the estimates used to determine income tax expense.
4. Consolidated Subsidiaries
Details of the consolidated subsidiaries as at June 30, 2019 and December 31, 2018, are as
follows:
Ownership interest held by
the Group (%)
Main business Location
June 30,
2019
December 31,
2018
Closing
month
Super Series 1st SPC1
Asset securitization Korea - 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
Super Series 6th SPC1 Asset securitization Korea 0.5 - December
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
12

articles of association. Accordingly, the Parent Company included SPCs under consolidation.
Meanwhile, in the event of non-payment arising from derivative contracts regarding asset-
backed securities issued by SPCs, counterparties of the derivative contracts can claim for
reimbursement from the Parent Company.
Details of the Group’s subsidiaries as at June 30, 2019 and December 31, 2018, are as
follows:
(in millions of Korean June 30, 2019
won)
Assets Liabilities
Operating
income
Profit (loss) for
the period
Comprehensive
income (loss)
Super Series 2nd SPC 100,051 100,051 2,480 - -
Super Series 3rd SPC 467,595 467,248 19,438 - (417)
Super Series 4th SPC 346,158 347,101 14,839 - (653)
Super Series 5th SPC 326,918 335,580 15,436 - (1,710)
Super Series 7th SPC 400,206 400,206 210 - -
Bluewalnut Co., Ltd. 38,472 17,632 6,261 (2,113) (2,113)
Money Market Trust 921,351 - 351 351 351
(in millions of Korean December 31, 2018
won)
Assets Liabilities
Operating
income
Profit (loss) for
the period
Comprehensive
income (loss)
Super Series 1st SPC 230,549 230,469 24,396 - (307)
Super Series 2nd SPC 300,102 300,102 2,651 - -
Super Series 3rd SPC 467,595 466,704 24,091 - (1,749)
Bluewalnut Co., Ltd. 24,849 11,747 1,584 (1,878) (1,925)
Money Market Trust 840,235 - 604 604 604
Subsidiaries newly included during the six-month period ended June 30, 2019:
Name of subsidiary Reason
Super Series 6th SPC Establishment
Super Series 7th SPC Establishment
Subsidiaries excluded from the consolidation during the six-month period ended June 30, 2019.
Name of subsidiary Reason
Super Series 1st SPC Liquidation
13

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 claim of residual income.
Also, the Group does not state non-controlling interests as capital, but as liability.
5. Restricted Financial Assets
Details of restricted financial assets as at June 30, 2019 and December 31, 2018, are as
follows:
(in millions of Korean won) June 30,
2019
December 31,
2018 Description
Cash and
deposits
Kookmin Bank and
others
18 18
Guarantee deposits for
overdraft
Shinhan Bank and
others
23,100 23,100 Secured deposits
Mirae Asset Securities - 3 Social enterprise fund
Shinhan Bank 1,500 1,500
Guarantee deposits for
overseas remittance
Citibank and others 132,286 103,372
Deposits related to
securitization
Other financial
assets
Korea Asset
Management
7,762 7,762
Escrow account in relation to a
sale of Daewoo Engineering
& Construction Co., Ltd.
164,666 135,755
6. Securities
Securities as at June 30, 2019 and December 31, 2018, are as follows:
(in millions of Korean won) June 30, 2019 December 31, 2018
Financial assets at fair value through profit or loss
Debt securities 520,146 857,036
Equity securities 487,521 205,200
1,007,667 1,062,236
Financial assets at fair value through other
comprehensive income
Equity securities 1,484 1,484
1,009,151 1,063,720
14

7. Card Assets and Loan Receivables
Details of card assets and loan receivables by customers as at June 30, 2019 and December
31, 2018, are as follows:
(in millions of June 30, 2019
Korean won)
Principal
Deferred
origination
cost and fee
Present
value of
discounts
Provision for
impairment
Carrying
amount
Card receivables
Household 8,612,877 (18,236) (17,150) (128,217) 8,449,274
Corporates 783,895 - - (4,028) 779,867
Short-term card loan
Household 634,743 - - (30,978) 603,765
Long-term card loan
Household 3,674,329 - (495) (238,670) 3,435,164
Loan receivables
Household 9,726 - - (495) 9,231
13,715,570 (18,236) (17,645) (402,388) 13,277,301
(in millions of December 31, 2018
Korean won)
Principal
Deferred
origination
cost and fee
Present
value of
discounts
Provision for
impairment
Carrying
amount
Card receivables
Household 8,249,979 (17,087) (13,428) (131,811) 8,087,653
Corporates 724,710 - - (4,634) 720,076
Short-term card loan
Household 672,551 - - (33,489) 639,062
Long-term card loan
Household 3,761,569 - (618) (229,356) 3,531,595
Loan receivables
Household 20,238 - - (1,118) 19,120
13,429,047 (17,087) (14,046) (400,408) 12,997,506
15

Changes in card assets and loan receivables which have significant impact on provisions for
impairment for the six-month periods ended June 30, 2019 and 2018, are as follows:
(in millions of Korean won) 2019
Card receivables Short-term card loan
Lifetime expected credit
losses
losses
12-month
expected credit
losses
Not
impaired Impaired
12-month
expected credit
losses
Not
impaired Impaired
Beginning balance 7,968,398 994,173 12,118 502,124 165,843 4,585
Transfer between stages
Transfer to assets
measured at 12-month
expected credit losses 367,825 (367,678) (147) 31,391 (31,367) (24)
Transfer to assets
measured at lifetime
expected credit losses (377,164) 377,278 (114) (43,879) 43,880 (1)
Impairment (8,268) (6,713) 14,981 (2,649) (1,702) 4,351
New and removal 481,791 17,435 (1,677) (273) (7,908) 323
Written-off - - (5,607) - - (2,507)
Disposal and repurchase (26,895) (35,993) (6,971) (12,329) (12,577) (2,538)
Ending balance 8,405,687 978,502 12,583 474,385 156,169 4,189
(in millions of Korean won)
2019
Long-term card loan Loan receivables
losses
losses
12-month
expected
credit losses
Not
impaired Impaired
12-month
expected
credit losses
Not
impaired Impaired Total
Beginning balance 2,974,942 613,327 173,300 18,849 1,327 62 13,429,048
Transfer to assets
expected credit losses 146,154 (146,064) (90) 610 (610) - -
Transfer to assets
expected credit losses (301,574) 301,829 (255) (675) 675 - -
Impairment (10,535) (6,238) 16,773 (59) (11) 70 -
New and removal 185,842 (192,473) 9,894 (9,652) (468) (16) 482,818
Written-off - - (6,926) - - (41) (15,081)
Disposal and repurchase (34,841) (37,918) (10,818) (153) (138) (44) (181,215)
Ending balance 2,959,988 532,463 181,878 8,920 775 31 13,715,570
16

losses
losses
12-month
expected credit
losses
Not
impaired Impaired
12-month
expected credit
losses
Not
impaired Impaired
Beginning balance 7,670,274 1,056,926 20,726 610,997 233,007 3,328
Transfer to assets
expected credit losses 382,737 (370,541) (12,196) 48,582 (48,578) (4)
Transfer to assets
expected credit losses (420,737) 422,109 (1,372) (65,984) 65,984 -
Impairment (6,418) (5,577) 11,995 (2,654) (1,610) 4,264
New and removal (50,203) 12,956 (885) (11,220) (5,789) 780
Written-off - - (3,181) - - (1,587)
Ending balance 7,546,177 1,076,507 10,683 562,887 225,335 4,946
2018
Long-term card loan Loan receivables
losses
losses
12-month
expected
credit losses
Not
impaired Impaired
12-month
expected
credit losses
Not
Beginning balance 2,654,544 680,477 152,093 - - - 13,082,372
Transfer to assets
expected credit losses 155,955 (155,926) (29) - - - -
Transfer to assets
expected credit losses (349,591) 349,788 (197) - - - -
Impairment (7,372) (5,615) 12,987 - - - -
New and removal 394,037 (67,892) 11,922 6,294 512 - 290,512
Written-off - - (4,085) - - - (8,853)
Disposal and repurchase (33,050) (37,377) (7,951) - - - (187,972)
Ending balance 2,814,523 763,455 164,740 6,294 512 - 13,176,059
17

8. Provisions for Impairment of Card Assets and Loan Receivables
Changes in provisions for impairment of card assets and loan receivables for the six-month
periods ended June 30, 2019 and 2018, are as follows:
losses
losses
12-month
expected credit
losses
Not
impaired Impaired
12-month
expected credit
losses
Not
impaired Impaired
Beginning balance 50,792 78,106 7,548 13,023 17,603 2,863
Transfer to assets
Transfer to assets
expected credit losses (5,568) 5,636 (68) (1,193) 1,193 -
Impairment (2,267) (2,457) 4,724 (1,140) (917) 2,057
Written-off - - (5,607) - - (2,507)
Recovered - - 317 - - 122
Additional (reversal of)
provisions (8,998) 24,335 4,226 2,117 3,930 1,458
Ending balance 51,065 73,271 7,909 12,367 15,941 2,670
(in millions of Korean 2019
won) Long-term card loan Loan receivables
losses
losses
12-month
expected
credit losses
Not
impaired Impaired
12-month
expected
credit losses
Not
Beginning balance 80,740 46,781 101,835 893 178 46 400,408
Transfer to assets
expected credit losses 12,279 (12,215) (64) 82 (82) - -
Transfer to assets
expected credit losses (8,711) 8,904 (193) (38) 38 - -
Impairment (3,013) (2,052) 5,065 (24) (12) 36 -
Written-off - - (6,926) - - (41) (15,081)
Recovered - - 295 - - - 734
Disposal and repurchase (8,403) (8,250) (6,013) (26) (35) (32) (48,864)
provisions 10,658 5,067 22,886 (501) 3 10 65,191
Ending balance 83,550 38,235 116,885 386 90 19 402,388
18

losses
losses
12-month
expected credit
losses
Not
impaired Impaired
12-month
expected credit
losses
Not
impaired Impaired
Beginning balance1
49,988 80,856 4,092 16,205 24,410 1,724
Transfer to assets
Transfer to assets
expected credit losses (6,149) 6,248 (99) (1,848) 1,848 -
Impairment (1,395) (1,480) 2,875 (824) (658) 1,482
Written-off - - (3,181) - - (1,587)
Recovered - - 246 - - 113
Disposal and repurchase (4,663) (4,720) (1,543) (2,704) (2,189) (779)
provisions (14,200) 26,547 3,687 (780) 5,327 1,875
Ending balance 48,007 83,126 5,976 14,810 23,979 2,826
(in millions of Korean 2018
won) Long-term card loan Loan receivables
losses
losses
12-month
expected
credit losses
Not
impaired Impaired
12-month
expected
credit losses
Not
Beginning balance1
72,183 50,814 77,951 - - - 378,223
Transfer to assets
expected credit losses 11,635 (11,616) (19) - - - -
Transfer to assets
expected credit losses (10,530) 10,672 (142) - - - -
Impairment (1,778) (1,755) 3,533 - - - -
Written-off - - (4,085) - - - (8,853)
Recovered - - 178 - - - 537
Disposal and repurchase (4,842) (3,329) (3,662) - - - (28,431)
provisions 9,646 10,885 11,930 328 62 - 55,308
Ending balance 76,314 55,672 85,684 328 62 - 396,784
1
81,069 million was recognized in the beginning balance of provision for impairment due to
initial application of Korean IFRS 1109.
19

9. Property and Equipment
Changes in property and equipment for the six-month periods ended June 30, 2019 and
2018, are as follows:
(in millions of 2019
Korean won)
Land Buildings Vehicles
Fixtures
and
equipment
Construction
-in-progress Total
Beginning balance 139,408 126,991 1,720 66,552 3,600 338,271
Acquisitions - - - 9,501 435 9,936
Reclassification - 27 - 2,533 (2,873) (313)
Disposal - - - (42) - (42)
Depreciation - (1,864) (81) (16,860) - (18,805)
Ending balance 139,408 125,154 1,639 61,684 1,162 329,047
Korean won)
Land Buildings Vehicles
Fixtures
and
equipment
Construction
-in-progress Total
Beginning balance 141,136 134,733 1,890 76,924 673 355,356
Acquisitions - 83 - 5,230 6,795 12,108
Reclassification - - - 228 (228) -
Disposal - - - (85) - (85)
Depreciation - (1,925) (89) (18,482) - (20,496)
Ending balance 141,136 132,891 1,801 63,815 7,240 346,883
20

10. Intangible Assets
Changes in intangible assets for the six-month periods ended June 30, 2019 and 2018, are as
follows:
Korean won) Developm-
ent cost Software Others
Construction
-in-progress
Member-
ship Total
Beginning balance 63,138 14,789 118 8,730 19,811 106,586
Acquisitions 3,726 2,201 - 5,470 - 11,397
Reclassification 3,000 68 - (4,353) - (1,285)
Disposal - - - - - -
Amortization (16,671) (4,152) (116) - - (20,939)
Ending balance 53,193 12,906 2 9,847 19,811 95,759
Korean won) Developm-
ent cost Software Others
Construction
-in-progress
Member-
ship Total
Beginning balance 78,006 18,156 475 7,652 19,811 124,100
Acquisitions 4,667 2,334 - 3,806 - 10,807
Reclassification 3,129 473 5 (4,939) - (1,332)
Disposal (128) - (10) - - (138)
Amortization (16,314) (4,050) (177) - - (20,541)
Ending balance 69,360 16,913 293 6,519 19,811 112,896
21

11. Borrowings
Details of borrowings as at June 30, 2019 and December 31, 2018, are as follows:
(in millions of Korean won) Annual interest
rate (%)1
June 30,
2019
December 31,
2018
Short-term borrowings
Commercial Paper KEB Hana Bank and 6 others 2.28 ~ 2.39 545,000 545,000
Borrowings
Korea Development Bank and 5
others
2.79 ~ 3.06 280,000 470,000
825,000 1,015,000
Current portion of long-term borrowings
Commercial Paper BNK Securities and 7 others 1.62 ~ 2.35 710,000 250,000
Borrowings Shinhan Bank 2.95 30,000 30,000
740,000 280,000
Long-term borrowings
Commercial Paper
KTB Investment Securities and 8
others
1.65 ~ 2.55 960,000 1,670,000
Borrowings NH Bank and 5 others 2.98 ~ 3.31 210,000 50,000
1,170,000 1,720,000
2,735,000 3,015,000
1
Interest rate after considering swaps
Details of debentures as at June 30, 2019 and December 31, 2018, are as follows:
(in millions of Korean won) Annual interest
rate (%)1
Maturity
June 30,
2019
December 31,
2018
Current portion of debentures 1.47 ~ 4.15
2019.07.03~
2020.06.26
2,151,920 2,240,860
Long-term debentures 1.52 ~ 3.73
2020.07.14~
2029.06.19
6,086,032 5,264,679
8,237,952 7,505,539
Less: Discounts on debenture (7,446) (7,177)
8,230,506 7,498,362
1
Interest rate after considering swaps
The outstanding debenture is non-guaranteed corporate bonds, with their principals to be
redeemed either by installment or at maturity. Bond issuance costs are recorded as discounts
on debenture and amortized using the effective interest rate method.
22

12. Post-employment Benefits
12.1 Defined Contribution Plan
The expense recognized in the consolidated interim statements of comprehensive income
related to post-employment benefit under the defined contribution plan for the six-month
periods ended June 30, 2019 and 2018, is as follows:
(in millions of Korean won) 2019 2018
Defined contribution plan 499 140
12.2 Net Employee Benefit Liabilities
Details of net employee benefit liabilities as at June 30, 2019 and December 31, 2018, are as
follows:
Net defined benefit liabilities (assets) 6,222 (2,765)
Long-term employee benefit liabilities 4,507 4,214
10,729 1,449
12.3 Defined Benefit Plan
General
The Group operates a defined benefit plan for qualified employees by applying average salary
over the past 3 months and length of service, etc. Plan assets mainly consist of deposits, and
are exposed to risk of lower interest rate.
23

Net defined benefit liabilities (assets)
Changes in present value of net defined benefit liabilities for the six-month periods ended
June 30, 2019 and 2018, are as follows:
Present value
of the defined
benefit
obligation Plan assets
National
pension fund
Net defined
benefit
liabilities
Beginning balance 75,934 (78,685) (14) (2,765)
Current service cost 5,685 - - 5,685
Interest expense (income) 982 (1,019) - (37)
Return on plan assets
(excluding amounts
included in interest income) - 577 - 577
Actuarial loss from change
in financial assumptions 2,809 - - 2,809
Transfer of employees
between the Company and
its related companies (360) 360 - -
Benefits paid (7,402) 7,353 2 (47)
Ending balance 77,648 (71,414) (12) 6,222
Present value
of the defined
benefit
obligation Plan assets
National
pension fund
Net defined
benefit
liabilities
Beginning balance 89,944 (85,767) (16) 4,161
Current service cost 6,987 - - 6,987
Interest expense (income) 1,370 (1,314) - 56
Return on plan assets
(excluding amounts
included in interest income) - 800 - 800
Actuarial loss from change
in financial assumptions 1,885 - - 1,885
Transfer of employees
between the Company and
its related companies 491 (403) - 88
Benefits paid (3,473) 3,035 - (438)
Ending balance 97,204 (83,649) (16) 13,539
24

12.4 Long-term Employee Benefits
Changes in present value of long-term employee benefit liabilities for the six-month periods
ended June 30, 2019 and 2018, are as follows:
Beginning balance 4,214 4,964
Current service cost 221 245
Interest expense 52 68
Actuarial gain 209 365
Benefits paid (189) (603)
Ending balance 4,507 5,039
13. Provisions
Changes in provisions for the six-month periods ended June 30, 2019 and 2018, are as follows:
(in millions of
Korean won) 2019
Unused
commitment Point
Provision for
restoration Others1
Total
Beginning balance 74,619 27,668 6,038 3,374 111,699
Changes in
accounting policies - - - - -
Provision (reversal) 2,604 (6,293) (3,398) (255) (7,342)
Others - - 3,084 (417) 2,667
Ending balance 77,223 21,375 5,724 2,702 107,024
1
Other provisions include provision for deposits in escrow account.
(in millions of
Korean won) 2018
Unused
commitment Point
Provision for
restoration Others Total
Beginning balance 54,404 27,506 5,296 9,848 97,054
Changes in
accounting policies 30,148 - - - 30,148
Reversal (6,803) (270) (153) (3) (7,229)
Others - - 307 (2,473) (2,166)
Ending balance 77,749 27,236 5,450 7,372 117,807
25

Changes in provision for unused commitment for the six-month periods ended June 30, 2019
and 2018, are as follows:
Lifetime expected credit losses
12-month
expected credit
losses
Not
Beginning balance 44,249 30,370 - 74,619
Transfer to assets measured
at 12-month expected credit
losses 13,792 (13,792) - -
at lifetime expected credit
losses (2,369) 2,369 - -
Impairment (3) (12) 15 -
Provision (reversal) (9,844) 12,464 (15) 2,605
Ending balance 45,825 31,399 - 77,224
Lifetime expected credit losses
12-month
expected credit
losses
Not
Beginning balance1
44,692 39,594 266 84,552
at 12-month expected credit
losses 16,568 (16,568) - -
at lifetime expected credit
losses (2,926) 2,926 - -
Impairment (5) (20) 25 -
Provision (reversal) (17,124) 10,612 (291) (6,803)
Ending balance 41,205 36,544 - 77,749
1
30,148 million was recognized in the beginning balance of provision for unused
commitment due to initial application of Korean IFRS 1109.
26

14. Derivatives and Hedge Accounting
There are no derivative instruments held for trading as at June 30, 2019 and December 31,
2018.
Cash flow hedge
The Group removes the volatility risk of future cash flow of a hedged item, such as
borrowings, caused by changes in market interest rates or in foreign currency rates by using
derivative instruments, such as an interest rate swap or currency swap.
Details of derivative assets and liabilities as at June 30, 2019 and December 31, 2018, are as
follows:
Korean won)
Unsettled
contract
amount Asset Liabilities
Accumulated
other
comprehensive
income1
Interest rate swap 2,505,000 195 23,148 (17,434)
Currency swap 1,607,952 13,960 4,453 (13,098)
4,112,952 14,155 27,601 (30,532)
Korean won)
Unsettled
contract
amount Asset Liabilities
Accumulated
other
comprehensive
income1
Interest rate swap 2,565,000 2,793 14,245 (8,737)
Currency swap 1,330,539 - 32,554 (4,191)
3,895,539 2,793 46,799 (12,928)
1
Amount reflects tax effect.
For transactions between local and foreign currencies, the unsettled contract amount of
transaction is translated by applying the basic foreign exchange rate at the end of reporting
period to the contract amount in foreign currencies. For transactions between foreign
currencies and other foreign currencies, the unsettled contract amount is the amounts
translated by applying the basic foreign exchange rate at the end of reporting period to the
contract amount in foreign currencies purchased.
The maximum period for the Group exposed to the variability in future cash flows arising from
derivatives designated as cash flow hedges is expected to be until June 19, 2026. Meanwhile,
there is no ineffective portion recognized related to cash flow hedge for the six-month periods
ended June 30, 2019 and 2018.
27

The average hedge ratio of derivative assets and liabilities as at June 30, 2019, is as follows:
(in millions of
Korean won)
Less than
1 year
Between
1-2 years
Between
2-3 years
Between
3-4 years
Between
4-5 years
Over
5 years Total
Nominal amount the
hedged item
1,941,920 842,840 405,472 822,720 - 100,000 4,112,952
Nominal amount the
hedging instrument
1,941,920 842,840 405,472 822,720 - 100,000 4,112,952
Average hedge ratio 100% 100% 100% 100% - 100% 100%
15. Share Capital and Hybrid Securities
The Parent Company’s total number of authorized shares is 600,000,000 ( 5,000 per share)
and the total number of ordinary shares issued is 160,465,286 shares ( 802,326 million).
Details of hybrid securities classified as equity as at June 30, 2019, are as follows:
(in millions of Korean won) Issue date Maturity date Interest rate Amount
731st
Bond-Type hybrid securities1
2018.07.05 2048.07.05 4.70% 300,000
Issuance costs (760)
299,240
1
Terms of issuance for Bond-Type hybrid securities are as follows:
Bond-Type hybrid securities
Maturity 30 years (extendable at the discretion of the Company at
original maturity)
Interest rate From maturity to July 5, 2023 : a fixed rate of 4.7% p.a.
with a one-off incremental 2% per the Step-up clause 5
years after issuance
Interest payment condition Three months in arrears with selective deferment
Others Early redemption by issuer allowed 5 years after issuance
28

16. Retained Earnings
Retained earnings as at June 30, 2019 and December 31, 2018, consist of:
Legal reserves1
53,889 50,808
Reserves for electronic financial transaction 1,000 1,000
Regulatory reserve for credit losses (Note 18) 668,644 698,019
Unappropriated retained earnings 1,415,723 1,305,465
2,139,256 2,055,292
1
The Commercial Code of the Republic of Korea requires the Parent Company to appropriate
for each financial period, as a legal reserve, an amount equal to a minimum of 10% of cash
dividends paid until such reserve equals 50% of its issued share capital. The reserve is not
available for cash dividends payment, but may be transferred to share capital or used to reduce
accumulated deficit.
Changes in retained earnings for the six-month periods ended June 30, 2019 and 2018, are
as follows:
Beginning balance 2,055,292 2,016,528
Changes in accounting policies - (84,784)
Profit for the period 121,821 77,390
Dividends paid (30,809) (19,416)
Distribution from hybrid securities (7,048) -
Ending balance 2,139,256 1,989,718
Dividends paid for the six-month period ended June 30, 2019, are as follows:
Total number
of ordinary
shares issued
Total number
of shares for
dividends
Dividend
per share
(in Korean won)
Total dividend
Ordinary shares 160,465,286 160,465,286 192 30,809
29

17. Accumulated Other Comprehensive Income
Changes in accumulated other comprehensive income for the six-month periods ended June
30, 2019 and 2018, are as follows:
(in millions of Korean
won) 2019
Changes
Beginning
balance
Reclassification
of profit or loss Other Tax effects
Ending
balance
Gain (loss) on valuation of
derivatives
(12,929) (244) (23,008) 5,649 (30,532)
Remeasurements of net
defined benefit liabilities
(10,526) - (3,387) 861 (13,052)
(23,455) (244) (26,395) 6,510 (43,584)
won) 2018
Changes
Beginning
balance
Reclassification
of profit or loss Other Tax effects
Ending
balance
Gain (loss) on valuation of
derivatives
7,233 73 (17,026) 4,088 (5,632)
Remeasurements of net
defined benefit liabilities
(13,416) - (2,685) 677 (15,424)
(6,183) 73 (19,711) 4,765 (21,056)
30

18. Regulatory Reserve for Credit Losses
Details of regulatory reserves for credit losses as at June 30, 2019 and December 31, 2018,
are as follows:
Beginning 668,644 698,019
Amount estimated to be reversed (7,164) (29,375)
Changes in accounting policies1
- (69,084)
Changes in regulatory reserves for credit
losses (7,164) 39,709
Ending 661,480 668,644
1
Changes in regulatory reserve for credit losses due to the application Korean IFRS 1109 in
2018.
Estimated provision (reversal) of reserves for credit losses and adjusted profit after provision
of reserves for credit losses for the six-month periods ended June 30, 2019 and 2018, are as
follows:
Provision of regulatory reserve for credit losses
(reversal of)1
(7,164) 3,208
Adjusted profit after provision of regulatory
reserve for credit losses 128,986 74,182
Earnings per share after provision of reserves
for credit losses (in Korean won) 804 462
1
Changes in regulatory reserve for credit losses, excluding the impact of changes in
accounting policies.
31

19. Card Income and Expense
Details of card income and expense for the three-month and six-month periods ended June
(in millions of 2019 2018
Korean won) Three Months Six Months Three Months Six Months
Card income
Agent commission 347,188 687,613 351,737 697,414
Commission income from life
service 8,790 16,943 6,509 13,612
Overseas commission income 7,765 16,430 12,166 19,497
Income from annual subscription 46,803 92,896 44,001 87,627
Others 30,788 62,198 33,312 67,007
Deduction from revenue1
(117,282) (241,994) (131,412) (276,208)
324,052 634,086 316,313 608,949
Card expense
Acquisition fee 25,741 54,380 37,311 81,052
Promotion 37,406 79,190 60,623 135,884
Service fee 187,893 383,181 173,479 350,416
Financial service fee 1,368 2,734 1,805 3,629
A new credit sale handling fee 40,789 78,287 40,919 77,750
Overseas payment fee 19,157 36,740 15,662 33,709
Card issuance expenses 7,038 14,013 6,497 13,432
Others 8,751 16,919 7,621 16,154
Deduction from expense1
(117,282) (241,994) (131,412) (276,208)
210,861 423,450 212,505 435,818
1
Deductible items in accordance with application of Korean IFRS 1115.
32

20. Interest Income and Expense
Interest income and expense for the three-month and six-month periods ended June 30, 2019
Interest income
Income from installment service 58,125 116,585 56,916 112,589
Commission income from short-
term card loan
24,585 49,099 31,607 63,773
Income from long-term card loan
(general card loan)
115,453 230,897 125,379 246,825
Income from long-term card loan
(refinancing loan)
2,401 4,754 2,306 4,565
Revolving interest income 44,797 89,552 45,327 91,400
Loans receivable income 454 1,059 55 55
Other interest income 7,738 13,820 5,733 12,152
253,553 505,766 267,323 531,359
Interest expense
Borrowings 16,408 33,750 16,355 31,034
Debentures 47,005 92,365 49,301 97,944
Others 325 696 (11) 30
63,738 126,811 65,645 129,008
33

21. Other Operating Income and Expenses
Other operating income and expense for the three-month and six-month periods ended June
Other operating income
Gain on foreign currency
transactions
5,440 10,302 4,724 9,715
Gain on foreign currency
translation
- - (6,811) -
Gain on derivatives transactions - 1,860 - -
Gain on valuation of derivatives 26,410 47,033 69,917 69,917
Others 15,602 35,172 11,744 24,455
47,452 94,367 79,574 104,087
Other operating expenses
Loss on foreign currency
transactions
1,496 4,854 2,010 3,703
Loss on foreign currency
translation
26,410 47,033 69,917 69,917
Loss on valuation of derivatives - - (6,811) -
Others 7,610 17,385 6,092 16,573
35,516 69,272 71,208 90,193
34

22. Selling and Administrative Expenses
Details of selling and administrative expenses for the three-month and six-month periods
ended June 30, 2019 and 2018, are as follows:
Salaries 37,367 74,942 45,285 90,457
Post-employment benefits 3,114 6,622 5,696 10,035
Employee benefits 5,433 12,782 6,551 15,036
Travel expenses 313 676 719 1,252
Communication expenses 6,107 16,326 8,047 16,714
Postal expenses 2,891 5,759 3,245 6,794
Rental expenses 5,092 8,049 7,694 15,423
Taxes and dues 4,057 11,012 4,443 10,917
Repair and maintenance expenses 363 702 364 710
Insurance premiums 84 139 130 204
Entertainment expenses 102 218 70 211
Advertising expenses 7,240 10,968 10,024 18,821
Supply expenses 843 1,704 766 1,573
Vehicle maintenance expenses 4 6 4 9
Periodicals expenses 37 105 84 137
Book and magazine expenses 1,499 2,431 1,064 2,248
Training expenses 343 516 593 1,259
IT expenses 10,772 22,702 12,564 25,668
Expense for temporary staff 1,160 2,559 1,282 2,817
Professional service expenses 36,684 72,706 38,933 77,610
Delivery commission 274 557 270 552
Commission expenses 8,792 17,608 9,089 17,446
Business activity expenses 301 557 614 1,184
Construction expenses 796 1,645 (4) 747
Depreciation 9,558 18,805 10,110 20,496
Amortization 10,469 20,939 10,282 20,542
Depreciation of right-of-use assets 5,073 10,944 - -
Event expenses 304 505 208 439
Conference expenses 79 118 167 274
Building administrative expenses 2,808 5,503 2,466 5,341
161,958 328,105 180,760 364,916
35

23. Tax Expense
Income tax expense for the six-month periods ended June 30, 2019 and 2018, consists of:
Current tax on profits for the period (including
additional payment of tax and income tax
refund) 35,684 (4,054)
Changes in deferred tax assets and liabilities (9,744) 21,188
Income tax expense reflected directly to equity 6,510 4,765
Income tax expense 32,450 21,899
Income tax expenses reflected directly to equity for the six-month periods ended June 30,
2019 and 2018, are as follows:
Beginning
balance Increase
Ending
balance
Tax effect related to cash flow
hedges 4,017 5,649 9,666
Tax effect related to
remeasurements of net
defined benefit liabilities 3,270 861 4,131
7,287 6,510 13,797
Beginning
balance Increase
Ending
balance
Tax effect related to cash flow
hedges (2,289) 4,088 1,799
Tax effect related to
remeasurements of net
defined benefit liabilities 4,246 677 4,923
1,957 4,765 6,722
36

A reconciliation between income before income tax and income tax expense for the six-month
periods ended June 30, 2019 and 2018, are as follows:
Profit before income tax 154,271 99,289
Income tax based on statutory tax rate
(rate: 11%, 22%, 24.2%) 36,872 23,566
Add (deduct):
Others (4,422) (1,667)
Income tax expense for continuing operations 32,450 21,899
Effective tax rates 21.03% 22.06%
24. Consolidated Interim Statements of Cash Flows
Details of cash and cash equivalents as at June 30, 2019 and December 31, 2018, are as
follows:
Current deposit 298 345
Ordinary deposit 251,321 205,439
Short-term financial instruments 50,000 -
Other cash and cash equivalents 857,514 660,672
1,159,133 866,456
Cash generated from (provided by) operations for the six-month periods ended June 30, 2019
Adjustments:
Income tax expense 32,450 21,899
Interest expense 126,811 129,008
Impairment loss 64,905 55,277
Loss on disposal of loan receivables 69,794 80,315
Loss on valuation of financial assets at fair
value through profit or loss
- 58
Post-employment benefits 5,648 7,183
Other long-term benefits 482 678
Depreciation 18,805 20,496
37

Amortization 20,939 20,542
Depreciation of right-of-use assets 10,944 -
Loss on foreign currency translations 47,033 69,917
Loss on disposal of property and equipment
and intangible assets
43 138
Non-interest-bearing installment 29,092 22,033
Other operating expenses 419 530
Reversal of provision (7,343) (7,229)
Interest income (13,821) (12,154)
Dividend income (30) (480)
Gain on valuation of financial assets at fair
(1,824) (1,448)
Gain on disposal of financial assets at fair
- (30)
Gain on valuation of derivatives (47,033) (69,917)
Amortization of present value of discounts of
card assets
(25,371) (20,018)
Amortization of deferred origination cost and
fee of card assets
(16,424) (16,714)
Gains on disposal of property and equipment
and intangible assets
(4) (237)
Gain on disposal of assets held-for-sale (697) -
Other operating income (20) (22)
314,798 299,825
Changes in operating assets and liabilities:
Decrease in financial assets at fair value
through profit or loss
57,989 23,547
Increase in card assets (412,185) (193,304)
Decrease in loan receivables 10,231 -
Increase in other receivables (5,908) (33,760)
Decrease (increase) in other assets 6,838 (3,460)
Increase (decrease) in other payables 117,466 (220,499)
Decrease in withholdings (112,071) (90,015)
Decrease in accrued expenses (24,834) (45,320)
Increase in other liabilities 7,954 10,159
(354,520) (552,652)
Cash generated from (provided by) operations 82,100 (175,437)
38

25. Contingencies and Commitments
(a) Significant commitments
The Group made an intraday bank overdrafts agreement of 150 billion with Shinhan Bank
and 4 other institutions, and the Group made an agreement of 1,521.8 billion with Kookmin
Bank and 18 other institutions for general loans and credit line as at June 30, 2019.
(b) In relation to the leased office building, the Group can exercise pre-emptive rights if the
lessor plans to sell the real estate or after four years and five months from the lease
commencement date on the lease agreement.
(c) Pending litigations
As at June 30, 2019, the Group is involved in 10 cases ( 13,975 million) as a defendant, 5
cases ( 19,664 million) as a plaintiff and the cases for debt collection against multiple debtors
in the important pending litigations. The Group does not expect these pending litigations
referred above to have a significant effect on the Group’s consolidated financial statements.
(d) Deposit for loss reimbursement
As at June 30, 2019, the Group has deposits of the proceeds and interests from the sale of
shares of Daewoo Engineering & Construction Co., Ltd. in an escrow account, which is
amounting to 2,702 million and 5,061 million, respectively. The Group recognized 2,702
million of the provision on deposits in escrow account (Note 13).
(e) Contract of sale of receivables
The Group entered into a contract with Hyundai Capital Services, Inc. relating to its sale of
receivables on January 24, 2006. In accordance with the contract, the Group sells the
receivables that are 60 days or more past due or written off (partially including receivables that
are before 60 days) to Hyundai Capital Services, Inc. Such sale occurs five times a month on
designated cutoff dates at the amount calculated using a predetermined price pursuant to the
contract. As a result, losses on disposal of loans receivable amounting to 69,794 million and
80,315 million for the six-month periods ended June 30, 2019 and 2018, were recognized.
(f) Reserve for loss reimbursement
The Group has the reserves for electronic financial transaction in case of fraudulent credit card
activities or accidents occurred in accordance with “Electronic Financial Transactions Act”.
39

(g) Insurance for the implementation of the liability for damages
The Group has insured a value of 1 billion for the implementation of the liability for damages
in accordance with the Article 43 of Credit Information Act.
(h) Commitment associated with asset-backed securitization
The Group continuously transfers receivables to maintain that the balance of the asset-backed
securitization is above a certain level of trust beneficiary certificates relating to the asset-
backed securitization. According to the agreement on the Group’s asset-backed securitization,
in order to enhance the credit level of the asset-backed securities, several provisions are in
place as trigger clauses to be used for early redemption calls, thereby limiting the risk that the
investors are exposed to resulting from a change in quality of the assets in the future. In the
event that the asset-backed securitization of the Group is in violation of the applicable trigger
clause, the Group is obliged to make early redemption for the asset-backed securities.
Meanwhile, when event of defaults occurs from derivative contracts regarding asset-backed
securities issued by Super Series 3rd SPC, Super Series 4th SPC, Super Series 5th SPC and
Super Series 6th SPC, the Parent Company may be liable for reimbursement of losses
incurred on counterparties.
(i) Agreement relating to borrowing liability
As at June 30, 2019, the Group has entered into agreements including Trigger clause with its
creditors for the purpose of credit enhancement of certain borrowing liabilities. If the Group
breaches its Trigger clause, the Group may be subject to early repayment, or suspension/
termination of contracts with the creditors.
40

26. Related Party Transactions
As at June 30, 2019, details of the related parties are as follows:
Companies
Parent company Hyundai Motor Company
Other related parties Green Air, Kia Motors, Kia Tigers, Maintrans Co., Ltd., Busan Finance
Center AMC, Seoul PMC, HL Green Power, WIA-MAGNA Powertrain,
Eukor Car Carriers, Innocean Worldwide, Iljin Bearing, Chunbuk
Hyundai Motors FC, G-Marine Service Co., Ltd., GIT, Korea Credit
Bureau, Hankook Economy Daily, Haevichi Hotels&Resorts, Haevichi
Country Club, Hyundai Engineering & Construction, Hyundai Glovis,
Hyundai Transys, Hyundai City Corporation, Hyundai Rotem,
Hyundai Materials, Hyundai Mobis, Hyundai BNG Steel, Hyundai
Farm Land & Development, Hyundai Engineering & Steel Industries,
Hyundai IHL, Hyundai Energy, Hyundai Engineering, Hyundai NGV,
Hyundai MSEAT, Hyundai MNSOFT, Hyundai AutoEver, Hyundai-
autron, Hyundai WIA, Hyundai WIA Turbo, Hyundai Steel Company,
HYUNDAI Architects & Engineers Assoc., Hyundai Special Steel
Company, HYUNDAI MOTOR SECURITIES CO.,LTD., Hyundai
Capital, Hyundai Commercial, Hyundai KEFICO, Hyundai Partecs,
Hyundai Capital America, Consumer Preferred Choice Limited,
Complete Logistic Solutions Limited, Alplnvest Partners Co-
Investments 2015 I SPV B.V., AlpInvest Partners Co-Investments
2015 II SPV B.V., AlpInvest Mich SPV B.V. and others
Sales and purchases with related parties for the six-month periods ended June 30, 2019 and
Korean won) Income Expense Others
Card
income
Rental
income Others
Card
expense
Selling and
administrative
expenses Others1
Purchase of
property and
equipment
and intangible
assets
Disposal of
assets2
Parent Company
Hyundai Motor
Company 74,129 - - - 51 172 - -
Other related
parties
Hyundai Capital - 505 14,805 20,938 1,132 11,159 - 62,531
Kia Motor Company 28,855 - 100 - - 62 - -
Hyundai Auto Ever
Systems 2,022 - 450 - 30,920 - 10,842 -
Hyundai Engineering 8 - - - 5,270 (1) - -
Hyundai Steel
Company 2 - - - - (3) - -
Others 1,033 714 679 19 1,756 954 - -
106,049 1,219 16,034 20,957 39,129 12,343 10,842 62,531
41

1
Reversal of provision for impairment on card assets due from related party amounting to
34 million is included.
2
The book amount before disposal (before deducting provision for impairment) is 181,214
million.
Korean won) Income Expense Others
Card
income
Rental
income Others
Card
expense
Selling and
administrative
expenses Others1
Purchase of
property and
equipment
and intangible
assets
Disposal of
assets2
Parent Company
Hyundai Motor
Company 66,548 - - - 139 237 - -
Other related
parties
Hyundai Capital 1 583 14,519 15,488 1,470 11,730 - 79,227
Hyundai Life 865 26 - - 2,571 1 - -
Kia Motor Company 32,366 - - - - 81 - -
Hyundai Auto Ever
Systems 2,051 - - 85 33,090 18 10,335 -
Hyundai Engineering 9 4 - - 5,256 - - -
Others 1,274 542 671 57 3,355 1,488 - -
103,114 1,155 15,190 15,630 45,881 13,555 10,335 79,227
1
Impairment loss on card assets due from related party amounting to 115 million is
included.
2
The book amount before disposal (before deducting provision for impairment) is 187,972
million.
Outstanding balances arising from sales/purchases of goods and services as at June 30, 2019
and December 31, 2018, are as follows:
(in millions of
Korean won) June 30, 2019
Receivables Payables
Unused
credit limit2
Card
assets1
Provision
for
impairment Others
Other
payables Others3
Parent Company
Hyundai Motor
Company 39,378 (53) 2,193 43,966 10 169,290
Other related parties
Hyundai Capital 60,914 (80) 194 2,363 1,201 218,184
Kia Motor Company 19,292 (25) 220 26,816 - 50,494
Hyundai AutoEver 8,594 (19) - 748 2 37,406
Hyundai Engineering 3,027 (4) - 9 - 2,973
42

Hyundai Steel
Company 3,132 (4) - 7,795 - 26,868
Others 22,789 (103) - 2,919 895 189,701
157,126 (288) 2,607 84,616 2,108 694,916
1
Unsettled amount of the corporate purchasing card amounting to 38,887 million is included
and the amounts used and redeemed for the six-month period ended June 30, 2019, are
373,538 million and 380,831 million, respectively.
2
Unused credit limit of the corporate purchasing card is included.
3
Cash outflow from lease liabilities for the six-month period ended June 30, 2019 is 235
million.
(in millions of
Korean won) December 31, 2018
Receivables Payables
Unused
credit limit2
Card
assets1
Provision
for
impairment Others
Other
payables Others
Parent Company
Hyundai Motor
Company 44,908 (59) 2,193 41,975 - 164,855
Other related parties
Hyundai Capital 53,076 (132) 328 2,394 637 178,680
Kia Motor Company 16,223 (21) - 14,165 - 53,777
Hyundai AutoEver 8,415 (19) - 2,666 2 37,585
Hyundai Engineering 3,533 (5) - 3 - 2,467
Others 35,845 (86) 1 8,427 561 208,151
162,000 (322) 2,522 69,630 1,200 645,515
1
Unsettled amount of the corporate purchasing card amounting to 46,180 million is included
and the amounts used and redeemed for the period ended December 31, 2018, are 672,840
million and 675,735 million, respectively.
2
Unused credit limit of the corporate purchasing card is included.
Compensation for key management for the six-month periods ended June 30, 2019 and
Short-term employee benefits 5,867 6,872
Post-employment benefits 1,016 1,821
Other long-term benefits 6 6
6,889 8,699
43

There were no fund transactions from the related parties for the six-month periods ended
June 30, 2019 and 2018.
Dividend paid to the related parties for the six-month periods ended June 30, 2019 and 2018,
are as follows:
Parent company and others 29,878 18,829
There are no payment guarantees and collateral provided by the Group for the financial
supports to the related parties as at June 30, 2019 and no collateral and payment guarantees
are provided by the related parties.
27. Transfers of Financial Assets
The Parent Company transferred receivables to Super Series 2nd SPC, Super Series 3rd
SPC, Super Series 4th SPC, Super Series 5th SPC, Super Series 6th SPC and Super Series
7th SPC (hereafter, “SPC”) in order to securitize assets. SPC issued subordinate asset-
backed securities with transferred receivables as underlying asset, and as the Parent
Company is providing credit reinforcement by acquiring such subordinate asset-backed
securities, should any impairment loss incurred in receivables belongs to the underlying
asset, the risk preferentially belongs to the Parent Company.
Transferred financial assets that are not derecognized in their entirety and the associated
liabilities as at June 30, 2019 and December 31, 2018, are as follows:
Asset-backed card assets
Book amount of assets1
4,692,932 3,852,306
Book amount of the associated liabilities 2,104,136 1,626,907
1
The amount is before provision for impairment.
As at June 30, 2019, the Group has issued its securitization liabilities with card assets as an
underlying asset, and the related securitization liabilities have the right of recourse about the
underlying assets. As at June 30, 2019, the fair value of financial assets transferred but not
eliminated is 4,657,294 million and the fair value of related liabilities is 2,109,052 million
and net position is 2,548,242 million.
44

28. Offsetting Financial Assets and Financial Liabilities
The Group has entered into derivative contracts that include an International Swaps and
Derivatives Association ("ISDA") master netting agreements.
Generally, in such arrangements, all contracts that exist in the same currency are consolidated
into one net amount and paid from one party to the other. Also, in the event of a credit event
such as bankruptcy, all contracts existing under the agreement will be cleared, the liquidating
value will be assessed and all contracts will be settled on a net basis.
The ISDA arrangement does not meet the offset requirement in the consolidated financial
statements. The Group does not currently have legally enforceable right to set-off in
recognized assets and liabilities because the right to set-off cannot be exercised before a
credit event such as bankruptcy occurs.
The effects of netting agreements as at June 30, 2019 and December 31, 2018, are as follows:
Korean won) Amounts not offset
Recognized
financial
assets and
liabilities
Gross
financial
assets and
liabilities
set off
Net amounts
presented in
the statement
of financial
position
Financial
instruments
Cash
collateral
received Net amounts
Financial assets
Derivative assets 14,155 - 14,155 195 - 13,960
Financial liabilities
Derivative liabilities 27,601 - 27,601 195 - 27,406
Korean won) Amounts not offset
Recognized
financial
assets and
liabilities
Gross
financial
assets and
liabilities
set off
Net amounts
presented in
the statement
of financial
position
Financial
instruments
Cash
collateral
received Net amounts
Financial assets
Derivative assets 2,793 - 2,793 2,633 - 160
Derivative liabilities 46,799 - 46,799 2,633 - 44,166
45

29. Financial Instruments by Category
Carrying amount of financial instruments by category as at June 30, 2019 and December 31,
won) June 30, 2019
Financial
assets at
amortized
cost
Financial assets
at fair value
through profit or
loss
Financial assets
at fair value
through other
comprehensive
income
Derivative
instruments
for hedging Total
Financial assets
Cash and deposits 1,219,651 - - - 1,219,651
Securities - 1,007,668 1,484 - 1,009,152
Card assets and loan
receivables 13,277,301 - - - 13,277,301
Other financial assets 174,825 - - 14,155 188,980
14,671,777 1,007,668 1,484 14,155 15,695,084
(in millions of Korean won) June 30, 2019
at amortized cost
Derivative instruments
for hedging Total
Borrowings 10,965,506 - 10,965,506
Other financial liabilities 1,696,848 27,601 1,724,449
12,662,354 27,601 12,689,955
won) December 31, 2018
Financial
assets at
amortized
cost
Financial assets
at fair value
through profit or
loss
Financial assets
at fair value
through other
comprehensive
income
Derivative
instruments
for hedging Total
Financial assets
Cash and deposits 947,477 - - - 947,477
Securities - 1,062,236 1,484 - 1,063,720
receivables 12,997,506 - - - 12,997,506
Other financial assets 177,860 - - 2,793 180,653
14,122,843 1,062,236 1,484 2,793 15,189,356
46

(in millions of Korean won) December 31, 2018
at amortized cost
Derivative instruments
for hedging Total
Borrowings 10,513,362 - 10,513,362
Other financial liabilities 1,684,188 46,799 1,730,987
12,197,550 46,799 12,244,349
Net gains or losses on each category of financial instruments for the six-month periods ended
June 30, 2019 and 2018, are as follows:
Interest income
Interest
expenses Card income
Card
expenses Impairment loss
Financial assets
Financial assets at amortized cost 505,766 - 634,087 423,450 64,905
profit or loss - - - - -
other comprehensive income - - - - -
Derivative instruments for hedging - - - - -
Financial liabilities at amortized cost - 126,811 - - -
505,766 126,811 634,087 423,450 64,905
Gain on
valuation
Gain (loss) on
disposal
Dividend
income
Loss on foreign
currency
translation
Gain (loss) on
foreign
currency
transactions
Financial assets
Financial assets at amortized cost - (69,794) - - 7,307
profit or loss 1,824 773 - - -
other comprehensive income - - 30 - -
Derivative instruments for hedging 31,553 - - - -
Financial liabilities at amortized cost - - - (47,033) (1,860)
Derivative instruments for hedging 15,480 1,860 - - -
48,857 (67,161) 30 (47,033) 5,447
47

Interest income
Interest
expenses Card income
Card
expenses Impairment loss
Financial assets
Financial assets at amortized cost 531,359 - 608,949 435,818 55,277
profit or loss - - - - -
other comprehensive income - - - - -
Financial liabilities at amortized cost - 129,008 - - -
531,359 129,008 608,949 435,818 55,277
Gain on
valuation
Gain (loss) on
disposal
Dividend
income
Loss on foreign
currency
translation
Gain on foreign
currency
transactions
Financial assets
Financial assets at amortized cost - (80,315) - - 6,013
profit or loss 1,390 237 455 - -
other comprehensive income - - 25 - -
Financial liabilities at amortized cost - - - (69,917) -
71,307 (80,078) 480 (69,917) 6,013
48

30. Fair Value of Financial Instruments
Fair value hierarchy classifications of the financial instruments that are subsequently
measured at fair value as at June 30, 2019 and December 31, 2018, are as follows:
Book amount Fair value Level 1 Level 2 Level 3
Financial assets
Financial assets at fair value
Securities at fair value
through profit or loss1
1,007,668 1,007,668 - 1,000,909 6,759
through other
comprehensive income2
1,484 1,484 - - 1,484
Derivatives assets 14,155 14,155 - 14,155 -
Derivatives liabilities 27,601 27,601 - 27,601 -
1
As at June 30, 2019, among the securities at fair value through profit or loss in level 3, equity
instruments amounting to 1,845 million are measured at cost since they do not have a
quoted price in an active market and their fair value cannot be measured reliably.
2
As at June 30, 2019, among the securities at fair value through other comprehensive income
in level 3, equity instruments amounting to 1,484 million are measured at cost since they do
not have a quoted price in an active market and their fair value cannot be measured reliably.
(in millions of Korean won) December 31, 2018
Book amount Fair value Level 1 Level 2 Level 3
Financial assets
through profit or loss1
1,062,236 1,062,236 - 1,057,100 5,136
through other
comprehensive income2
1,484 1,484 - - 1,484
Derivatives assets 2,793 2,793 - 2,793 -
Derivatives liabilities 46,799 46,799 - 46,799 -
1
As at December 31, 2018, among the securities at fair value through profit or loss in level 3,
equity instruments amounting to 1,122 million are measured at cost since they do not have
a quoted price in an active market and their fair value cannot be measured reliably.
2
As at December 31, 2018, among the securities at fair value through other comprehensive
income in level 3, equity instruments amounting to 1,484 million are measured at cost since
they do not have a quoted price in an active market and their fair value cannot be measured
reliably.
49

To provide information about the reliability of the inputs used in determining fair value, the
Group classifies its financial instruments into the three levels prescribed under the accounting
standards. Financial instruments that are measured at fair value are categorized by the fair
value hierarchy whereby the levels are defined as follows:
- Level 1: The fair value of financial instruments traded in active markets (such as publicly
traded derivatives and equity securities) is based on quoted market prices at the end of
the reporting period. The quoted marked price used for financial assets held by the
Group is the current bid price. These instruments are included in level 1.
- Level 2: The fair value of financial instruments that are not traded in an active market
(for example, over–the–counter derivatives) is determined using valuation techniques
which maximize the use of observable market data and rely as little as possible on
entity-specific estimates. If all significant inputs required to measure an instrument at
fair value are observable, the instrument is included in level 2.
- Level 3: If one or more of the significant inputs is not based on observable market data,
the instrument is included in level 3. Examples include unlisted equity securities.
There are no changes in fair value hierarchy level for the six-month period ended June 30,
2019.
The following table explains valuation techniques, fair value hierarchy, notable unobservable
inputs and extents, and the correlation between unobservable inputs and fair value
measurement used in fair value measurement:
(in millions of
Korean won)
Classification
Fair value
Fair value
hierarchy
Valuation techniques
Range of
inputs
June 30,
2019
December
31, 2018
Securities Assets 1,000,909 1,057,100 Level 2 The fair value is determined by discounting
the expected cash flows with the market
interest rate considering the similar credit
grade with the debt security issuer.
N/A
4,914 4,014 Level 3 The fair value of equity securities is
determined by net assets value approach
or discounting the expected cash flows
with an appropriate discount rate.
Interest rate
swap
Assets 195 2,793 Level 2 Discount rates and forward rates used to
measure fair values of interest rate swap
are determined based on the applicable
constructed market-based yield curve.
The fair value is determined by offsetting
the discounted expected cash flows of
interest rate swap with the
aforementioned forward rates.
N/A
Liabilities 23,148 14,245
Currency swaps Assets 13,960 - Level 2 Discount rates and forward rates used to
measure fair values of currency swaps
are determined based on the applicable
constructed market-based yield curve.
Liabilities 4,453 32,554 N/A
50

(in millions of
Korean won)
Classification
Fair value
Fair value
hierarchy
Range of
inputs
June 30,
2019
December
31, 2018
The trading base rate on the morning of
the report date is used as currency swap’s
exchange rate. The fair value is
determined by offsetting the discounted
expected cash flows of currency swap
with the aforementioned forward rates and
closing price.
The table below provides the fair value and carrying amount of financial instruments that are
not measured subsequently at fair value in the consolidated statements of financial position
as at June 30, 2019 and December 31, 2018.
Book amount Fair value Book amount Fair value
Assets
Financial assets
Cash and deposit 1,219,651 1,219,651 947,477 947,477
receivables 13,277,301 13,477,091 12,997,506 13,285,408
Other financial assets 174,825 174,825 177,860 177,860
14,671,777 14,871,567 14,122,843 14,410,745
Liabilities
Borrowings 10,965,506 11,060,707 10,513,362 10,564,385
Other financial liabilities 1,696,848 1,696,848 1,684,188 1,684,188
12,662,354 12,757,555 12,197,550 12,248,573
The fair valuation techniques of the financial instruments measured at amortized cost are as
follows:
Cash and deposits The carrying amounts of cash and demand due from financial institutions and
payment due from financial institutions are reasonable approximation of fair
values. These financial instruments do not have a fixed maturity and are
receivable on demand. Fair value of ordinary due from financial institutions is
measured using DCF model. However, if the remaining maturity is short at the
reporting date, the carrying amount is regarded as fair value.
Card assets and
loan receivables
DCF model is used to determine the fair value of card assets and loan
receivables. Fair value is determined by discounting the expected cash flows,
which are contractual cash flows adjusted by early redemption rate, at
appropriate discount rate. However, if the remaining maturity is short at the
reporting date, the carrying amount is regarded as fair value.
Other financial
assets
DCF model is used to determine the fair value of other financial assets. Fair
value is determined by discounting the expected cash flows, which are
contractual cash flows, at appropriate discount rate. However, if the remaining
maturity is short at the reporting date, the carrying amount is regarded as fair
value.
Borrowings Fair value is calculated by DCF model at an appropriate interest rate for
respective range of maturity.
51

Other financial
liabilities
DCF model is used to determine the fair value of other financial liabilities. Fair
value is determined by discounting the expected cash flows, which are
contractual cash flows, at appropriate discount rate. However, if the remaining
maturity is short at the reporting date, the carrying amount is regarded as fair
value.
The table below provides the fair value hierarchy of financial instruments that are not
measured subsequently at fair value in the consolidated interim statements of financial position
as at June 30, 2019 and December 31, 2018.
(in millions of
Korean won) June 30, 2019
Level 1 Level 2 Level 3 Total
Financial assets
receivables
- - 13,477,091 13,477,091
Borrowings - 11,060,707 - 11,060,707
(in millions of
Korean won) December 31, 2018
Level 1 Level 2 Level 3 Total
Financial assets
receivables
- - 13,285,408 13,285,408
Borrowings - 10,564,385 - 10,564,385
The management of the Group anticipates that, except for the items described in the table
above, the book amount of the financial assets and liabilities measured at amortized cost in
the consolidated financial statements is similar to the fair value.
There are no significant changes in business or economic environment for the six-month
period ended June 30, 2019, which affect fair values of financial assets and liabilities held by
the Group as at June 30, 2019.
52

31. Earnings per Share
(a) Basic earnings per share for the three-month and six-month periods ended June 30, 2019
(in Korean won) 2019 2018
Three months Six months Three months Six months
Profit for the period 57,648,377,873 121,821,644,636 51,304,512,841 77,390,149,614
(-) Distribution from hybrid
securities 3,527,152,015 7,047,894,768 - -
Profit attributable to ordinary
shares (A) 54,121,225,858 114,773,749,868 51,304,512,841 77,390,149,614
Weighted average number of
ordinary shares outstanding (B) 160,465,286 160,465,286 160,465,286 160,465,286
Basic earnings per share (A/B) 337 715 320 482
There are no discontinued operations for the six-month periods ended June 30, 2019 and
2018, and as such, earnings per share are the same as earnings per share from continuing
operations.
(b) Diluted earnings per share
The Group did not issue any potential ordinary shares. Therefore, basic earnings per share is
identical to diluted earnings per share.
32. Financial Risk Management
The Group is exposed to credit, liquidity and market risks. In order to manage these factors,
the Group operates risk management policies and programs that monitor closely and
respond to each of the risk factors. The Group uses derivatives to manage market risks.
There was no significant change in the Group’s risk management policies and procedures
after December 31, 2018.
53

33. Capital Management
The Parent Company (specialized credit finance company) must maintain adjusted capital
adequacy ratio in accordance with Specialized Credit Financial Business Law and sub
regulations, and the ratio for the credit card company must be more than 8%. This ratio is
calculated by dividing adjusted capital with adjusted total assets and all factors are based on
separate financial statements. The Parent Company maintains an adjusted capital adequacy
ratio of more than 8%.
Details of adjusted capital adequacy ratio as at June 30, 2019 and December 31, 2018, are
as follows:
December 31,
2018
Adjusted total assets (A) 15,295,816 14,676,949
Adjusted total capital (B) 3,003,830 2,883,998
Adjusted capital adequacy ratio (B/A) 19.64% 19.65%
34. Changes in Accounting Policies – Adoption of Korean IFRS 1116 Lease
As explained in Note 2.1, the Group has adopted Korean IFRS 1116, retrospectively, from
January 1, 2019, but has not restated comparatives for the 2018 reporting period, as
permitted under the specific transitional provisions in the standard. The reclassifications and
the adjustments arising from the new leasing rules are, therefore, recognized in the
consolidated statement of financial position on January 1, 2019.
(a) Adjustments recognized on adoption of Korean IFRS 1116 Lease
On adoption of Korean IFRS 1116, the Group recognized lease liabilities in relation to
leases which had previously been classified as ‘operating leases’ under the principles of
Korean IFRS 1017. These liabilities were measured at the present value of the remaining
lease payments, discounted using the lessee’s incremental borrowing rate as at January 1,
2019. The weighted average lessee’s incremental borrowing rate applied to the lease
liabilities on January 1, 2019 was 2.36%.
Operating lease commitments disclosed as at December 31, 20181
59,168
Discounted using the lessee’s incremental borrowing rate of at the
date of initial application 54,441
Lease liability recognized as at January 1, 2019 54,441
1
Excluded from low-value leases.
54

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