Hcc 2 q_eng

Hyundai Card Co., Ltd. and
Subsidiaries
Consolidated Interim Financial Statements
June 30, 2018 and 2017

Hyundai Card Co., Ltd. and Subsidiaries
Index
June 30, 2018 and 2017
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 - 53

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, 2018, and the related
consolidated interim statements of comprehensive income for the three-month and six-month periods
ended June 30, 2018 and 2017, and consolidated interim statements of changes in equity and cash flows
for the six-month periods ended June 30, 2018 and 2017, 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.

2
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, 2017,
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 7, 2018. The
consolidated statement of financial position as at December 31, 2017, presented herein for comparative
purposes, is consistent, in all material respects, with the above audited statement of financial position as
at December 31, 2017.
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.
Seoul, Korea
August 13, 2018
This report is effective as of August 13, 2018, 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.

Consolidated Interim Statements of Financial Position
June 30, 2018 and December 31, 2017
(in Korean won) Notes
Assets
Cash and deposits 4,22,27
Cash and cash equivalents ￦ 935,640,690,110 ￦ 654,412,163,620
Deposits 46,724,500,000 50,524,500,000
982,365,190,110 704,936,663,620
Securities 5,27
Financial assets at fair value through profit or loss 972,991,675,484 -
Financial assets at fair value through
other comprehensive income 1,483,575,000 -
Short-term trading financial assets - 993,465,595,038
Available-for-sale financial assets - 1,766,969,764
974,475,250,484 995,232,564,802
Card assets 6,7,24,25,27
Card receivables 8,603,868,631,995 8,721,173,547,767
Provision for impairment (137,107,817,649) (84,338,059,074)
Short-term card loan 793,167,832,105 847,331,862,963
Long-term card loan 3,742,028,782,401 3,486,474,567,478
12,742,671,231,038 12,757,825,137,234
Loan receivables 6,7,27
Installment loan receivables 6,805,797,304 -
Provision for impairment (390,264,904) -
6,415,532,400 -
Property and equipment 8,24
Land 141,135,593,407 141,135,593,407
Buildings 153,194,711,892 153,112,422,428
Accumulated depreciation (20,303,431,424) (18,378,711,180)
Vehicles 2,514,088,391 2,514,088,391
Accumulated depreciation (713,674,104) (624,373,518)
Fixtures and equipment 223,843,916,505 220,299,985,094
Accumulated depreciation (160,029,058,641) (143,375,835,685)
Construction in progress 7,240,489,577 672,620,703
346,882,635,603 355,355,789,640
Other assets
Other receivables 27 118,556,360,810 84,796,316,310
Provision for impairment (320,895,176) (458,287,634)
Accrued revenue 27 48,434,529,855 50,969,812,148
Advance payments 29,234,011,354 30,246,334,975
Provision for impairment (319,815,535) (216,102,073)
Prepaid expenses 138,919,307,417 120,245,563,892
Intangible assets 9,24 112,895,753,972 124,100,132,534
Derivative assets 13,26,27 7,250,792,678 10,002,954,866
Deferred tax assets 21 151,708,207,965 145,821,706,670
Guarantee deposits provided 4,27 31,446,807,135 33,703,463,766
Others 5,931,112,028 5,435,182,572
641,599,271,741 603,146,636,549
Total assets ￦ 15,694,409,111,376 ￦ 15,416,496,791,845
December 31, 2017June 30, 2018
(Unaudited)
3

Consolidated Interim Statements of Financial Position
June 30, 2018 and December 31, 2017
(in Korean won)
Liabilities
Borrowings 10,23,27
Borrowings ￦ 2,965,000,000,000 ￦ 2,535,000,000,000
Debentures 7,945,470,450,026 7,610,236,853,058
10,910,470,450,026 10,145,236,853,058
Other liabilities
Other payables 24,27 1,154,878,930,752 1,385,784,959,853
Accrued expenses 27 155,722,171,619 220,571,277,243
Unearned revenue 356,218,888,195 346,812,832,289
Withholdings 27 96,326,485,844 186,341,825,335
Derivative liabilities 13,26,27 43,518,470,358 99,233,725,250
Current tax liabilities 2,442,886,223 46,593,089,060
Deferred tax liabilities 21 5,688,074 -
Net employee benefit liabilities 11 18,577,770,345 9,123,887,095
Guarantee deposits received 27 9,748,003,465 9,368,668,603
Provisions 12,23 117,806,560,342 97,053,617,960
1,955,245,855,217 2,400,883,882,688
Total liabilities 12,865,716,305,243 12,546,120,735,746
Equity
Share capital 802,326,430,000 802,326,430,000
Reserves 57,704,443,955 57,704,443,955
Accumulated other comprehensive income 15 (21,056,255,633) (6,182,687,024)
Retained earnings 14 1,989,718,187,811 2,016,527,869,168
Total equity 2,828,692,806,133 2,870,376,056,099
Total liabilities and equity ￦ 15,694,409,111,376 ￦ 15,416,496,791,845
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, 2017 has been prepared in accordance with Korean IFRS 1039, the previous standard.
(Unaudited)
June 30, 2018 December 31, 2017
4

Consolidated Interim Statements of Comprehensive Income
Three-Month and Six-Month Periods Ended June 30, 2018 and 2017
Notes
Operating income
Card income 17,24 447,725,271,891 885,157,413,411 427,505,916,312 857,096,872,860
Effective interest method interest income 18 267,323,215,238 531,359,205,555 253,263,806,633 505,293,702,715
Gain on valuation and disposal of securities 1,197,130,184 1,685,346,102 (35,088,762) 1,283,351,063
Dividend income - 480,125,631 33,000,000 162,417,126
Decrease in provision for unused credit limits 12 (1,518,567,114) 6,803,141,464 - -
Other operating income 19,24 79,574,359,097 104,087,096,101 37,080,746,736 157,605,793,374
794,301,409,296 1,529,572,328,264 717,848,380,919 1,521,442,137,138
Operating expenses
Card expenses 17,24 343,916,997,863 712,026,232,919 335,575,737,069 674,984,573,381
Interest expenses 18 65,645,152,056 129,007,869,453 59,795,270,897 121,081,453,377
Selling and administrative expenses 20,24 180,759,502,235 364,915,804,577 174,883,922,727 343,214,415,053
Securitization expenses 272,724,876 452,026,063 206,404,574 338,002,258
Impairment losses 28,830,576,993 55,276,585,698 26,320,115,884 39,655,988,898
Loss on disposal of loan receivables 23 36,581,735,929 80,314,579,683 34,297,408,756 72,508,995,309
Loss on valuation and disposal of securities 58,100,000 58,100,000 - -
Increase in provision for unused credit limits 12 - - 281,984,370 2,038,052,487
Other operating expenses 19,24 71,208,175,924 90,192,579,218 (13,778,225,265) 94,762,028,652
727,272,965,876 1,432,243,777,611 617,582,619,012 1,348,583,509,415
Operating profit 67,028,443,420 97,328,550,653 100,265,761,907 172,858,627,723
Non-operating income
Gain on disposal of property and equipment, and intangible assets 21,612,053 236,610,053 18,652,277 35,072,560
Rental income 24 837,692,547 1,686,609,946 880,337,523 1,720,325,268
Miscellaneous gain 174,728,046 458,516,751 1,866,252,360 1,986,449,754
1,034,032,646 2,381,736,750 2,765,242,160 3,741,847,582
Non-operating expenses
Loss on disposal of property and equipment, and intangible assets 10,102,215 138,196,235 684,681,966 749,393,052
Donations 12,424,000 282,878,144 245,565,796 4,030,619,941
22,526,215 421,074,379 930,247,762 4,780,012,993
Profit before income tax expense 68,039,949,851 99,289,213,024 102,100,756,305 171,820,462,312
Income tax expense 21 16,735,437,010 21,899,063,410 24,490,748,081 41,016,175,132
Profit for the period 51,304,512,841 77,390,149,614 77,610,008,224 130,804,287,180
Other comprehensive income 15
Items that will not be reclassified to profit or loss
Remeasurements of net defined benefit liabilities (2,559,007,389) (2,007,450,823) (1,440,810,769) (1,059,640,989)
Items that may be subsequently reclassified to profit or loss
Cash flow hedges (6,791,124,028) (12,866,117,786) 727,040,943 3,414,594,309
(9,350,131,417) (14,873,568,609) (713,769,826) 2,354,953,320
Total comprehensive income for the period 41,954,381,424 62,516,581,005 76,896,238,398 133,159,240,500
Earnings per share 28
Basic earnings per share 320 482 484 815
Diluted earnings per share 320 482 484 815
The consolidated interim statement of comprehensive income for the three-month and six-month periods ended June 30, 2017 has been prepared in accordance with Korean IFRS 1039, the previous standard.
The above consolidated interim statements of comprehensive income should be read in conjunction with the accompanying notes.
Period Ended June 30
(in Korean won)
2018
(Unaudited)
2017
(Unaudited)
Three months Six months Three months Six months
5

Consolidated Interim Statements of Changes in Equity
Six-Month Periods Ended June 30, 2018 and 2017
(in Korean won)
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
Total comprehensive income
Profit for the period 　- 　- 　- 　- 130,804,287,180 130,804,287,180
Other comprehensive income
Remeasurements of net defined benefit liabilities 　- 　- 　- (1,059,640,989) 　- (1,059,640,989)
Cash flow hedges 　- 　- 　- 3,414,594,309 　- 3,414,594,309
Balance at June 30, 2017 (Unaudited) 802,326,430,000 45,399,364,539 12,305,079,416 (26,218,182,135) 1,993,155,654,047 2,826,968,345,867
Balance at January 1, 2018 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
Changes in accounting policies 　- - - - (84,783,531,365) (84,783,531,365)
Restated total equity at the beginning of the financial year 802,326,430,000 45,399,364,539 12,305,079,416 (6,182,687,024) 1,931,744,337,803 2,785,592,524,734
Dividends paid 　- 　- 　- 　- (19,416,299,606) (19,416,299,606)
Total comprehensive income
Profit for the period 　- 　- 　- 　- 77,390,149,614 77,390,149,614
Other comprehensive income
Remeasurements of net defined benefit liabilities 　- 　- 　- (2,007,450,823) 　- (2,007,450,823)
Cash flow hedges 　- 　- 　- (12,866,117,786) 　- (12,866,117,786)
Balance at June 30, 2018 (Unaudited) 802,326,430,000 45,399,364,539 12,305,079,416 (21,056,255,633) 1,989,718,187,811 2,828,692,806,133
The consolidated interim statement of changes in equity for the six-month period ended June 30, 2017 has been prepared in accordance with Korean IFRS 1039, the previous standard.
The above consolidated interim statements of changes in equity should be read in conjunction with the accompanying notes.
capital
Share
premium
Share
AccumulatedReserves
Other
reserves earnings
Retainedother
comprehensive income Total
6

Consolidated Interim Statements of Cash Flows
Six-Month Periods Ended June 30, 2018 and 2017
(in Korean won) Notes
Cash flows from operating activities
Cash generated from (used in) operating activities 22 (175,437,290,424) 431,841,587,958
Interests received 11,827,316,773 9,579,669,750
Interests paid (155,258,819,483) (151,824,292,563)
Dividends received 480,125,631 162,417,126
Income taxes paid (40,096,455,780) (35,179,889,410)
Net cash inflow (outflow) from operating activities (358,485,123,283) 254,579,492,861
Cash flows from investing activities
Acquisition of financial assets at fair value
through profit or loss (1,400,000,000) -
Disposal of financial assets at fair value
through profit or loss 30,289,700 -
Disposal of available-for-sale financial assets - 22,439,400
Disposal of property and equipment 237,626,544 38,204,500
Disposal of intangible assets - 19,534,000
Acquisition of property and equipment (14,753,686,524) (15,506,073,932)
Acquisition of intangible assets (16,993,746,613) (15,494,031,417)
Decrease in guarantee deposits provided 2,256,656,631 3,216,242,298
Net cash outflow from investing activities (30,622,860,262) (27,703,685,151)
Cash flows from financing activities
Proceeds from borrowings 1,720,000,000,000 955,000,000,000
Proceeds from issue of debentures 7,200,752,809,641 6,230,658,240,766
Repayment of borrowings (1,290,000,000,000) (425,000,000,000)
Repayment of debentures (6,941,000,000,000) (6,832,904,167,016)
Dividends paid (19,416,299,606) -
Net cash inflow (outflow) from financing activities 670,336,510,035 (72,245,926,250)
Net increase in cash and cash equivalents 281,228,526,490 154,629,881,460
Cash and cash equivalents at the beginning of the period 22 654,412,163,620 544,794,485,545
Cash and cash equivalents at the end of the period 22 935,640,690,110 699,424,367,005
Six-month period ended June 30
(Unaudited) (Unaudited)
The consolidated interim statement of cash flows for the six-month period ended June 30, 2017 has been prepared in accordance with Korean IFRS 1039, the previous standard.
The above consolidated interim statements of cash flows should be read in conjunction with the accompanying notes.
2018 2017
7

Notes to the Consolidated Interim Financial Statements
June 30, and 2017 (Unaudited), and December 31, 2017
8
1. General Information
Hyundai Card Co., Ltd. (the Company or the Parent Company), which is a controlling company
in accordance with International Financial Reporting Standards as adopted by the Republic of
Korea(“Korean IFRS”) 1110 Consolidated Financial Statements, is engaged in 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 license to the Company to engage
in credit card business. The Company operates its business under Specialized Credit Finance
Business Act and other relevant applicable regulations.
As at June 30, 2018, the Company has approximately 7.21 million card members, 2.55 million
registered merchants, and 89 marketing centers and branches.
As at June 30, 2018, 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,
2018 and December 31, 2017, are as follows:
June 30, 2018 December 31, 2017
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%

9
1.1 Consolidated Subsidiaries
Details of the consolidated subsidiaries as at June 30, 2018 and December 31, 2017, are as
follows:
June 30,
2018
December 31,
2017
Main business Location
Ownership interest held by
the Group (%)
Closing
month
Prvia 4th SPC1
Asset securitization Korea - 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 0.5 December
Super Series 5th SPC1 Asset securitization Korea 0.5 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
Subsidiaries other than Bluewalnut Co., Ltd. and Money Market Trust are designed in a
manner that voting rights or similar rights are not a key factor in determining power over
subsidiaries.
Subsidiaries above except for Money Market Trust and Bluewalnut Co., Ltd. are special
purpose companies (SPCs) that were established for business activities of the Group. 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 an ‘autopilot’ basis 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 in the scope of 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.

10
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,
2018, 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, 2018.
(a) 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, 2018.
- 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 is 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 may elect, at initial recognition, to measure separately for each
associate or joint venture. The amendment does not have a significant impact on the
financial statements because the Group is not a venture capital organization.
- Amendments 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 does not 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. The amendments also clarify that the measurement approach

11
should treat the terms and conditions of a cash-settled award in the same way as for an
equity-settled award. The amendments do not have a significant impact on the financial
statements.
- Enactment of Korean IFRS 2122 Foreign Currency Transaction and Advance
Consideration
According to the enactment, 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. The enactment does
not have a significant impact on the financial statements.
- Korean IFRS 1109 Financial Instruments
The Group has applied Korean IFRS 1109 Financial Instruments on January 1, 2018, the
date of initial application. In accordance with its transitional provisions, comparative figures
have not been restated, and the differences between previous carrying amounts and
carrying amounts at the date of initial application are recognized as retained earnings. See
Note 31 for further details on the impact of the application of the standard.
- Korean IFRS 1115 Revenue from Contracts with Customers
The Group has elected to apply Korean IFRS 1115 Revenue from Contracts with Customers.
In accordance with its transition provisions in Korean IFRS 1115, comparative figures have
not been restated. The Group elected the modified retrospective approach, and recognized
the cumulative impact of initially applying the revenue standard as an adjustment to retained
earnings as at January 1 2018, the period of initial application. See Note 31 for further details
on the impact of the application of the standard.
(b) 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, 2018 and have not been
early adopted by the Group are set out below.
- 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. The Group will apply the standards for annual periods beginning on or
after January 1, 2019.
Under the new standard, with implementation of a single lease model, lessee is required to
recognize assets and liabilities for all lease whose lease term is 12 months or more and
underlying assets are not of low value. A lessee is required to recognize a right-of-use asset

12
and a lease liability representing its obligation to make lease payments.
The Group performed an impact assessment to identify potential financial effects of applying
Korean IFRS 1116. The Group is analyzing effects on the financial statements based on
available information as at May 14, 2018 to identify effects on 2019 financial statements;
however, it is difficult to provide reasonable estimates of financial effects until the analysis is
complete.
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, 2017, except for the
changes due to the application of amendment and enactments of standards described in
Note 2.1. (a) and the ones 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 Financial Assets
The Group applied Korean IFRS 1109 Financial Instruments issued on September 25, 2015
for annual periods beginning on or after January 1, 2018. This standard replaced Korean
IFRS 1039 Financial Instruments: Recognition and Measurement.
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 all financial assets to be classified and
measured on the basis of entity’s business model for managing financial assets and the
contractual cash flow characteristics of financial assets. A new impairment model, an
expected credit loss model, is introduced and any subsequent changes in expected credit
losses will be recognized in profit or loss. Also, hedge accounting rules amended to extend
the hedging relationship, which consists only of eligible hedging instruments and hedged
items, qualifies for hedge accounting.
(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

13
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
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 to
collect contractual cash
flows
Measured at amortized cost1
Recognized at fair value
through profit or loss2
Hold the financial asset to
collect contractual cash
flows or sell
Recognized at fair value through
other comprehensive income1
Hold for trading
Recognized at fair value through
profit or loss
1
Designation as 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).
(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.

14
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.
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.
(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.
Furthermore, when the Group first applies Korean IFRS 1109, it may choose as its
accounting policy choice to continue to apply all of the hedge accounting requirements of
Korean IFRS 1039 instead of the requirements of Korean IFRS 1109.
The consolidated interim statement of financial position as at June 30, 2018, and the related
consolidated interim statements of comprehensive income for the three-month and six-month
period ended June 30, 2018, changes in equity and cash flows for the six-month period ended
June 30, 2018, and notes to the consolidated interim financial statements have been prepared
in accordance with Korean IFRS 1109, and the comparative financial statements have not
been restated.
The initial application date of Korean IFRS 1109 is January 1, 2018 and the details of
adjustments of book amount of financial assets, liabilities, loss allowance, and the impact on
equity components arising from the adoption of Korean IFRS 1109 were disclosed in Note
31.

15
2.2.3 Revenue Recognition
From January 1, 2018, the Group has elected to apply Korean IFRS 1115 Revenue from
Contracts with Customers. This standard replaced Korean IFRS 1018 Revenue, Korean
IFRS 1011 Construction Contracts, Korean IFRS 2031 Revenue-Barter Transactions
Involving Advertising Services, Korean IFRS 2113 Customer Loyalty Programs, Korean
IFRS 2115 Agreements for the Construction of Real Estate and Korean IFRS 2118 Transfers
of assets from customers.
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:
ž Identify contracts with customers
ž Identify the separate performance obligation
ž Determine the transaction price of the contract
ž Allocate the transaction price to each of the separate performance obligations, and
ž Recognize the revenue as each performance obligation is satisfied.
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, 2017, 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.

16
4. Restricted Financial Assets
Details of restricted financial assets as at June 30, 2018 and December 31, 2017, are as
follows:
(in millions of Korean won) June 30,
2018
December 31,
2017 Description
Cash and cash
equivalents
Kookmin Bank and
others
18 18
Guarantee deposits for
overdraft
Shinhan Bank and
others
23,100 23,100 Secured deposits
Mirae Asset
Securities
7 7 Social enterprise fund
Citibank 44,894 81,910
Deposits related to
securitization
Other financial
assets
Korea Asset
Management
7,193 7,193
Escrow account in
relation to a sale of
Daewoo Engineering &
Construction Co., Ltd.
75,212 112,228
5. Securities
Securities as at June 30, 2018 and December, 31 2017, are as follows:
(in millions of Korean won) June 30, 2018 December 31, 2017
Financial assets at fair value through profit or loss
Debt securities 631,322 -
Equity securities 341,386 -
Unlisted equity securities 283 -
972,991 -
Financial assets at fair value through other
comprehensive income
Unlisted equity securities 1,484 -
Financial assets held for trading
Debt securities - 853,461
Equity securities - 140,005
- 993,466
Available-for-sale financial assets
Unlisted equity securities - 1,767
974,475 995,233

17
6. Card Assets and Loan Receivables
Details of card assets and loan receivables by customers as at June 30, 2018 and December
31, 2017, are as follows:
(in millions of June 30, 2018
Korean won)
Principal
Deferred
origination
cost and fee
Present
value of
discounts
Provision for
impairment
Carrying
amount
Card receivables
Household 7,861,285 (16,736) (12,763) (130,353) 7,701,433
Corporates 772,082 - - (6,755) 765,327
Short-term card loan
Household 793,168 - - (41,615) 751,553
Long-term card loan
Household 3,742,718 - (689) (217,671) 3,524,358
Loan receivables
Household 6,806 - - (390) 6,416
13,176,059 (16,736) (13,452) (396,784) 12,749,087
(in millions of December 31, 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
Short-term card loan
Household 847,332 - - (28,342) 818,990
Long-term card loan
Household 3,487,114 - (639) (184,475) 3,302,000
13,082,372 (16,004) (11,388) (297,155) 12,757,825

18
Changes in card assets and loan receivables which have significant impact on provisions for
impairment for the six-month period ended June 30, 2018, are as follows:
(in millions of Korean won) Card receivables Short-term card loan
Lifetime expected credit losses Lifetime expected credit 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 between stages
Transfer to assets
measured at 12-month
expected credit losses 382,737 (370,541) (12,196) 48,582 (48,578) (4)
Transfer to assets
measured at lifetime
expected credit losses (420,737) 422,109 (1,372) (65,984) 65,984 -
Impairment (4,948) (4,605) 9,553 (1,799) (1,079) 2,878
New and removal (50,204) 12,956 (885) (11,220) (5,789) 779
Written-off (1,470) (972) (739) (855) (531) (200)
Disposal and repurchase (29,476) (39,366) (4,404) (16,834) (17,679) (1,835)
Ending balance 7,546,176 1,076,507 10,683 562,887 225,335 4,946
(in millions of Korean won) Long-term card loan Loan receivables
12-month expected
credit losses
Not
impaired Impaired
12-month expected
credit losses
Not
impaired Impaired Total
Beginning balance 2,654,544 680,477 152,093 - - - 13,082,372
Transfer to assets
measured at 12-month
expected credit losses 155,955 (155,926) (29) - - - -
Transfer to assets
measured at lifetime
expected credit losses (349,590) 349,787 (197) - - - -
Impairment (5,652) (4,256) 9,908 - - - -
New and removal 394,036 (67,891) 11,923 6,294 512 - 290,511
Written-off (1,719) (1,359) (1,007) - - - (8,852)
Disposal and repurchase (33,050) (37,377) (7,951) - - - (187,972)
Ending balance 2,814,524 763,455 164,740 6,294 512 - 13,176,059

19
7. 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, 2018 and 2017, are as follows:
2018
(in millions of Korean
won)
Card receivables Short-term card loan
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 between
stages
Transfer to assets
measured at 12-
month expected
credit losses 24,426 (24,325) (101) 4,761 (4,759) (2)
Transfer to assets
measured at
lifetime expected
credit losses (6,149) 6,248 (99) (1,848) 1,848 -
Impairment (135) (519) 654 (69) (129) 198
Written-off (1,470) (972) (739) (855) (531) (200)
Recovered 210 12 24 99 3 11
Disposal and
repurchase (4,663) (4,721) (1,542) (2,703) (2,190) (780)
Additional (reversal
of) 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
2018
won)
Long-term card loan Loan receivables
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 between
stages
Transfer to assets
measured at 12-
month expected
credit losses 11,635 (11,616) (19) - - - -
Transfer to assets
measured at
lifetime expected
credit losses (10,530) 10,672 (142) - - - -
Impairment (220) (397) 617 - - - -
Written-off (1,719) (1,359) (1,007) - - - (8,852)
Recovered 161 2 15 - - - 537
Disposal and
repurchase (4,842) (3,329) (3,662) - - - (28,432)

20
Additional (reversal
of) provisions 9,646 10,885 11,931 328 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.
(in millions of 2017
Korean won) Card
receivables
Short-term
card loan
Long-term
card loan Total
Beginning balance 85,887 30,728 167,123 283,738
Written-off (1,501) (566) (2,166) (4,233)
Recovered 167 96 82 345
Disposal and repurchase (13,016) (6,990) (14,490) (34,496)
Additional provisions 13,150 6,830 20,432 40,412
Ending balance 84,687 30,098 170,981 285,766

21
8. Property and Equipment
Changes in property and equipment for the six-month periods ended June 30, 2018 and 2017,
are as follows:
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
Korean won)
Land Buildings Vehicles
Fixtures
and
equipment
Construction
-in-progress Total
Beginning balance 141,136 111,978 2,075 73,007 35,075 363,271
Acquisitions - 2,086 - 11,559 2,525 16,170
Reclassification - 21,727 - 12,936 (34,815) (152)
Disposal - - - (1,088) - (1,088)
Depreciation - (1,742) (93) (17,426) - (19,261)
Ending balance 141,136 134,049 1,982 78,988 2,785 358,940

22
9. Intangible Assets
Changes in intangible assets for the six-month periods ended June 30, 2018 and 2017, are as
follows:
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
Korean won) Developm-
ent cost Software Others
Construction
-in-progress
Member-
ship Total
Beginning balance 75,467 20,301 824 8,283 19,811 124,686
Acquisitions 6,730 862 - 6,202 - 13,794
Reclassification 6,365 248 - (6,613) - -
Disposal - (19) - - - (19)
Amortization (14,385) (3,807) (177) - - (18,369)
Ending balance 74,177 17,585 647 7,872 19,811 120,092

23
10. Borrowings
Details of borrowings as at June 30, 2018 and December 31, 2017, are as follows:
(in millions of Korean won) Annual interest
rate (%)
June 30,
2018
December
31, 2017
Short-term borrowings
Commercial Paper Shinhan Bank and 4 others 2.08 ~ 2.20 445,000 545,000
Borrowings
Korea Development Bank and 9
others
2.72 ~ 3.10 420,000 390,000
865,000 935,000
Current portion of long-term borrowings:
Commercial Paper
KTB Investment Securities and
other
1.88 ~ 1.89 250,000 -
Borrowings Woori Bank and other 2.73 ~ 2.85 150,000 200,000
400,000 200,000
Long-term borrowings
Commercial Paper
KTB Investment Securities and
9 others
1.62 ~ 2.55 1,670,000 1,370,000
Borrowings Shinhan Bank 2.95 30,000 30,000
1,700,000 1,400,000
2,965,000 2,535,000
Details of debentures as at June 30, 2018 and December 31, 2017, are as follows:
(in millions of Korean won) Annual interest
rate (%) Maturity
June 30,
2018
December
31, 2017
Short-term debentures - - - 70,000
Current portion of debentures 1.45 ~ 4.75
2018.07.01 ~
2019.06.28
2,423,680 2,175,280
Long-term debentures 1.55 ~ 4.15
2019.07.03 ~
2027.09.19
5,530,483 5,374,966
7,954,163 7,620,246
Less: Discounts on debenture (8,693) (10,009)
7,945,470 7,610,237
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.

24
11. Post-employment Benefits
11.1 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, 2018 and 2017, is as follows:
(in millions of Korean won) 2018 2017
Defined contribution plan 140 90
11.2 Net Employee Benefit Liabilities
Details of net employee benefit liabilities as at June 30, 2018 and December 31, 2017, are as
follows:
Net defined benefit liabilities 13,539 4,160
Long-term employee benefit liabilities 5,039 4,964
18,578 9,124
11.3 Defined Benefit Plan
(a) 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.

25
(b) Net defined benefit liabilities
Changes in present value of net defined benefit liabilities for the six-month periods ended June
30, 2018 and 2017, are as follows:
(in millions of Korean won) 2018
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
Present value
of the defined
benefit
obligation Plan assets
National
pension fund
Net defined
benefit
liabilities
Beginning balance 85,965 (76,486) (17) 9,462
Current service cost 6,611 - - 6,611
Interest expense (income) 1,094 (981) - 113
Return on plan assets
(excluding amounts
included in interest income)
- 573 - 573
Actuarial loss from change
in financial assumptions
866 - - 866
Transfer of employees
between the Company and
its related companies
1,000 (255) - 745
Benefits paid (3,597) 2,737 1 (859)
Ending balance 91,939 (74,412) (16) 17,511

26
11.4 Long-term Employee Benefits
Changes in present value of long-term employee benefit liabilities for the six-month periods
ended June 30, 2018 and 2017, are as follows:
Beginning balance 4,964 4,644
Current service cost 245 260
Interest expense 68 61
Actuarial loss 365 420
Benefits paid (603) (309)
Ending balance 5,039 5,076
12. Provisions
Changes in provisions for the six-month periods ended June 30, 2018 and 2017, are as follows:
(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
Provision (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
(in millions of
Korean won) 2017
Unused
commitment Point
Provision for
restoration Others Total
Beginning balance 57,181 23,490 5,710 14,192 100,573
Provision (reversal) 2,038 (1,972) (922) (2,997) (3,853)
Ending balance 59,219 21,518 4,788 11,195 96,720
Other provisions include provision for deposits in escrow account and for pending litigations
amounting to ￦2,233 million and ￦5,139 million, respectively, as at June 30, 2018.

27
Changes in provision for unused commitment for the six-month periods ended June 30, 2018
and 2017, are as follows:
Lifetime expected credit losses
12-month
expected credit
losses
Not
Beginning balance1
44,692 39,594 266 84,552
Transfer to assets measured
at 12-month expected credit
losses
16,568 (16,568) - -
Transfer to assets measured
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 due to initial application of Korean
IFRS 1109.
Beginning balance 57,181
Provision 2,038
Ending balance 59,219
13. Derivatives and Hedge Accounting
There are no derivative instruments held for trading as at June 30, 2018 and December 31,
2017.
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.

28
Details of derivative assets and liabilities as at June 30, 2018 and December 31, 2017, are as
follows:
(in millions of June 30, 2018
Korean won)
Unsettled
contract
amount Asset Liabilities
Accumulated
other
comprehensive
income1
Interest rate swap 2,730,000 6,185 7,659 (1,117)
Currency swap 1,559,163 1,066 35,859 (4,515)
4,289,163 7,251 43,518 (5,632)
(in millions of December 31, 2017
Korean won)
Unsettled
contract
amount Asset Liabilities
Accumulated
other
comprehensive
income1
Interest rate swap 2,030,000 10,003 2,764 5,498
Currency swap 1,489,246 - 96,470 1,735
3,519,246 10,003 99,234 7,233
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 May 24, 2023. Meanwhile,
there is no ineffective portion recognized related to cash flow hedge for the six-month periods
ended June 30, 2018 and 2017.
The average hedge ratio of derivative assets and liabilities as at June 30, 2018, 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 Total
Nominal amount the
hedged item
1,425,800 1,662,145 551,925 318,130 360,000 4,318,000
Nominal amount the
hedging instrument
1,425,800 1,662,145 551,925 318,130 360,000 4,318,000
Average hedge ratio 100% 100% 100% 100% 100% 100%

29
14. Retained Earnings
Retained earnings as at June 30, 2018 and December 31, 2017, consist of:
Legal reserves1
50,808 45,127
Reserves for electronic financial transaction 1,000 -
Regulatory reserve for credit losses (Note 16) 698,019 657,774
Unappropriated retained earnings 1,239,891 1,313,627
1,989,718 2,016,528
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, 2018 and 2017, are
as follows:
Beginning balance 2,016,528 1,862,352
Changes in accounting policies (84,784) -
Profit for the period 77,390 130,804
Dividends paid (19,416) -
Ending balance 1,989,718 1,993,156
Dividends determined for the six-month period ended June 30, 2018, are as follows:
Total number
of ordinary
shares issued
Total number
of shares for
dividends
Dividend
per share
(in Korean won)
Total dividend
(in millions of Korean won)
Ordinary shares 160,465,286 160,465,286 121 19,416

30
15. Accumulated Other Comprehensive Income
Changes in accumulated other comprehensive income for the six-month periods ended June
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)
won) 2017
Changes
Beginning
balance
Reclassification
of profit or loss Other Tax effects
Ending
balance
Gain (loss) on valuation of
derivatives
(9,429) 1,668 2,813 (1,066) (6,014)
Remeasurements of net
defined benefit liabilities
(19,144) - (1,439) 379 (20,204)
(28,573) 1,668 1,374 (687) (26,218)
16. Regulatory Reserve for Credit Losses
Details of regulatory reserves for credit losses as at June 30, 2018 and December 31, 2017,
are as follows:
Beginning 698,019 657,774
Estimated reversal due to changes in
accounting policies
(69,084) -
Amount estimated to be appropriated 3,208 40,245
Ending 632,143 698,019

31
Estimated provision of reserves for credit losses and adjusted profit after provision of reserves
for credit losses for the six-month periods ended June 30, 2018 and 2017, are as follows:
Amount estimated to be appropriated 3,208 70,399
Adjusted profit after provision of reserves for
credit losses 74,182 60,405
Earnings per share after provision of reserves
for credit losses (in Korean won) 462 376
17. Card Income and Expense
Details of card income and expense for the three-month and six-month periods ended June
(in millions of 2018 2017
Korean won) Three Months Six Months Three Months Six Months
Card income
Agent commission 351,737 697,414 338,857 677,231
Commission income from life
service
6,509 13,612 3,170 6,325
Overseas commission income 12,166 19,497 7,548 15,068
Income from annual subscription 44,001 87,627 43,310 86,107
Others 33,312 67,007 34,622 72,366
447,725 885,157 427,507 857,097
Card expense
Acquisition fee 37,311 81,052 48,539 101,017
Promotion 60,623 135,884 67,127 136,622
Service fee 173,479 350,416 154,892 309,915
Financial service fee 1,805 3,629 2,029 3,979
A new credit sale handling fee 40,919 77,750 36,058 69,091
Overseas payment fee 15,662 33,709 14,186 28,926
Card issuance expenses 6,497 13,432 6,061 11,674
Others 7,621 16,154 6,684 13,761
343,917 712,026 335,576 674,985

32
18. Interest Income and Expense
Interest income and expense for the three-month and six-month periods ended June 30, 2018
and 2017, are as follows:
Interest income
Income from installment service 56,916 112,589 48,276 94,090
Commission income from short-
term card loan
31,607 63,773 32,228 63,011
Income from long-term card loan
(general card loan)
125,379 246,825 118,122 239,313
Income from long-term card loan
(refinancing loan)
2,306 4,565 2,108 4,293
Revolving interest income 45,327 91,400 47,015 94,482
Loans receivable income 55 55 - -
Other interest income 5,733 12,152 5,515 10,105
267,323 531,359 253,264 505,294
Interest expense
Borrowings 16,355 31,034 11,035 20,261
Debentures 49,301 97,944 48,734 100,768
Others (11) 30 26 52
65,645 129,008 59,795 121,081

33
19. 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
4,724 9,715 16,169 27,684
Gain on foreign currency
translation
(6,811) - (33,334) 58,450
Gain on valuation of derivatives 69,917 69,917 330 330
Others 11,744 24,455 53,916 71,142
79,574 104,087 37,081 157,606
Other operating expenses
Loss on foreign currency
transactions
2,010 3,703 1,898 3,047
Loss on foreign currency
translation
69,917 69,917 330 330
Loss on derivatives transactions - - 11,484 18,154
Loss on valuation of derivatives (6,811) - (33,334) 58,450
Others 6,092 16,573 5,844 14,781
71,208 90,193 (13,778) 94,762

34
20. Selling and Administrative Expenses
Details of selling and administrative expenses for the three-month and six-month periods
ended June 30, 2018 and 2017, are as follows:
Salaries 45,285 90,457 39,784 69,999
Post-employment benefits 5,696 10,035 3,696 8,476
Employee benefits 6,551 15,036 5,640 13,138
Travel expenses 719 1,252 602 1,398
Communication expenses 8,047 16,714 8,062 15,445
Postal expenses 3,245 6,794 3,987 8,270
Rental expenses 7,694 15,423 6,783 14,167
Taxes and dues 4,443 10,917 4,193 10,035
Repair and maintenance
expenses
364 710 367 653
Insurance premiums 130 204 69 120
Entertainment expenses 70 211 76 183
Advertising expenses 10,024 18,821 11,922 23,165
Supply expenses 766 1,573 951 1,919
Vehicle maintenance expenses 4 9 5 8
Periodicals expenses 84 137 51 145
Book and magazine expenses 1,064 2,248 1,483 3,071
Training expenses 593 1,259 988 2,099
IT expenses 12,564 25,668 12,193 24,858
Expense for temporary staff 1,282 2,817 1,196 2,619
Professional service expenses 38,933 77,610 39,565 78,131
Delivery commission 270 552 301 617
Commission expenses 9,089 17,446 7,526 16,077
Business activity expenses 614 1,184 813 1,571
Construction expenses (4) 747 1,333 2,907
Depreciation 10,110 20,496 10,112 19,261
Amortization 10,282 20,542 9,323 18,369
Event expenses 208 439 1,302 1,551
Conference expenses 167 274 115 186
Building administrative
expenses
2,466 5,341 2,446 4,776
180,760 364,916 174,884 343,214

35
21. Tax Expense
Income tax expense for the six-month periods ended June 30, 2018 and 2017, consists of:
Current tax on profits for the period (including
additional payment of tax and income tax
refund) (4,054) 46,472
Changes in deferred tax assets and liabilities 21,188 (4,769)
Income tax expense reflected directly to equity 4,765 (687)
Income tax expense 21,899 41,016
Income tax expenses reflected directly to equity for the six-month periods ended June 30,
2018 and 2017, are as follows:
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
Beginning
balance
Increase
(decrease)
Ending
balance
Tax effect related to cash flow
hedges 2,980 (1,066) 1,914
Tax effect related to
remeasurements of net
defined benefit liabilities 6,050 379 6,429
9,030 (687) 8,343

36
A reconciliation between income before income tax and income tax expense for the six-month
periods ended June 30, 2018 and 2017, is as follows:
Profit before income tax 99,289 171,820
Income tax based on statutory tax rate
(rate: 11%, 22%, 24.2%)
23,566 41,119
Add (deduct):
Others (1,667) (103)
Income tax expense for continuing operations 21,899 41,016
Effective tax rates 22.06% 23.87%
22. Consolidated Interim Statements of Cash Flows
Details of cash and cash equivalents as at June 30, 2018 and December 31, 2017, are as
follows:
Current deposit 273 223
Ordinary deposit 157,378 225,278
Time deposit 5,000 15,000
Other cash and cash equivalents 772,990 413,911
935,641 654,412
Cash generated from (used in) operations for the six-month periods ended June 30, 2018 and
2017, are as follows:
Adjustments:
Income tax expense 21,899 41,016
Interest expense 129,008 121,081
Impairment loss 55,277 39,656
Loss on disposal of loan receivables 80,315 72,509
Loss on valuation of financial assets at fair
value through profit or loss
58 -
Post-employment benefits 7,183 6,814
Depreciation 20,496 19,261
Amortization 20,542 18,369

37
Loss on foreign currency translations 69,917 330
Loss on valuation of derivatives - 58,450
Loss on disposal of property and equipment
and intangible assets
138 749
Sales promotional expenses 22,033 16,950
Other operating expenses 1,209 1,626
Reversal of provision (7,229) (789)
Interest income (12,154) (10,104)
Dividend income (480) (162)
Gain on valuation of financial assets at fair
(1,448) -
Gain on disposal of financial assets at fair
(30) -
Gain on valuation of financial assets held for
trading
- (1,129)
Gain on disposal of available-for-sale financial
assets
- (22)
Gain on foreign currency translation - (58,450)
Gain on valuation of derivatives (69,917) (330)
Amortization of present value of discounts of
card assets
(20,018) (15,822)
Amortization of deferred origination cost and
fee of card assets
(16,714) (15,749)
Gains on disposal of property and equipment
and intangible assets
(237) (35)
Other operating income (22) (15)
299,825 294,204
Changes in operating assets and liabilities:
Decrease in financial assets at fair value
through profit or loss
23,547 -
Decrease in financial assets held for trading - 186,240
Decrease (increase) in card assets (193,304) 91,780
Increase in other receivables (33,760) (1,712)
Increase in other assets (3,460) (3,705)
Decrease in other payables (220,499) (262,723)
Increase (decrease) in withholdings (90,015) 9,509
Decrease in accrued expenses (45,320) (14,452)
Increase in other liabilities 10,159 1,897
(552,652) 6,834
Cash generated from (used in) operations (175,437) 431,842

38
23. Contingencies and Commitments
(a) Credit line agreement
The following is credit line agreement as at June 30, 2018 and December 31, 2017.
Financial
instrument
June 30, 2018 December 31, 2017
Intraday overdraft limit
and others
Woori Bank
and 6 others
342,500 342,500
(b) Revolving credit facility
As the Group has a revolving credit facility agreement with many financial institutions for credit
line as at June 30, 2018, the Group made a revolving credit facility agreement for 1,420.9
billion with Kookmin Bank and 15 others for credit line as at June 30, 2018.
(c) In relation to the leased office building, the Group can exercise pre-emptive right to
purchase 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.
(d) Pending litigations
As at June 30, 2018, the Group is involved in 17 cases ( 26,575 million) as a defendant, 4
cases ( 17,999 million) as a plaintiff and the cases for debt collection against multiple debtors
in the important pending litigations. The Group records 5,139 million for other provisions
regarding the cases as a defendant. Management of the Group does not anticipate that these
pending litigations referred above will have a significant effect on the Group’s consolidated
financial statements (Note 12).
(e) Deposit for loss reimbursement
As at June 30, 2018, 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 2,233 million and 4,960 million, respectively. The Group recognized
2,233 million of the other provision on deposits in escrow account, and 4,467 million of
the other provision for pending litigation related to the sale of shares of Daewoo Engineering
& Construction Co., Ltd. (Note 12).
(f) 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. Pursuant to the contract, the Group sells 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

39
a result, losses on disposal of loans receivable amounting to 80,315 million and 72,509
million for the six-month periods ended June 30, 2018 and 2017 were recognized.
(g) 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”(Note 14).
(h) 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.
(i) 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.
(j) Agreement relating to borrowing liability
As at June 30, 2018, 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
24. Related Party Transactions
As at June 30, 2018, 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 Country Club, Haevichi
Hotels&Resorts, Hyundai Construction, Hyundai Glovis, Hyundai
Dymos, Hyundai City Corporation, Hyundai Life, 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 Auto Ever Systems,
Hyundai-autron, Hyundai WIA, Hyundai WIA IHI Turbo, Hyundai Steel
Company, HYUNDAI Architects & Engineers Assoc., Hyundai Special
Steel Company, Hyundai Capital, HMC Investment Securities Co.,
Ltd., Hyundai Commercial, Hyundai KEFICO, Hyundai Powertech,
Hyundai Partecs, Hyundai Capital America, Consumer Preferred
Choice Limited, Complete Logistic Solutions Limited, Alplnvest
Partners Co-Investments 2015 ⅠSPV B.V., Alplnvest Partners Co-
Investments 2015 ⅡSPV B.V., Alplnvest Mich SPV B.V. and others
Sales and purchases with related parties for the six-month periods ended June 30, 2018 and
won) 2018
Income Expense Others
Card
income
Rental
income Others
Card
expense
Selling and
administrative
expenses Others1
Purchase of
property
and
equipment
Purchase
of
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 18 148 10,187 -
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 13,555 148 10,187 79,227
1
Impairment loss on card assets due from related party amounting to 115 million is included.

41
2
The carrying amount before disposal (before deducting provision for impairment) is 187,972 million.
won) 2017
Income Expense Others
Card
income
Rental
income Others
Card
expense
Selling and
administrative
expenses Others1
Purchase of
property
and
equipment
Purchase
of
intangible
assets
Disposal
of assets2
Parent Company
Hyundai Motor
Company 70,458 - - 3,290 324 183 - - -
Other related
parties
Hyundai Capital 381 588 12,937 8,597 1,240 12,725 - - 76,503
Hyundai Life 1,162 76 - 19 2,451 (7) - - -
Kia Motor Company 32,994 - - - 4 (83) - - -
Hyundai Auto Ever
Systems 2,076 - - 48 33,819 5 - 6,938 -
Hyundai Engineering 9 4 - - 4,782 - - - -
Others 2,094 519 532 493 2,192 1,215 3,159 - -
109,174 1,187 13,469 12,447 44,812 14,038 3,159 6,938 76,503
1
Reversal of provision for impairment of card assets due from related party amounting to 207 million is included.
2
The carrying amount before disposal (before deducting provision for impairment) is 183,509 million.
Outstanding balances arising from sales/purchases of goods and services as at June 30, 2018
and December 31, 2017, are as follows:
(in millions of
Korean won) June 30, 2018
Receivables Payables
Unused
credit limit2
Card
assets1
Provision for
impairment Others
Other
payables Others
Parent Company
Hyundai Motor
Company
38,378 (57) 2,134 39,867 - 171,622
Other related parties
Hyundai Capital 39,195 (89) 327 2,429 637 220,502
Hyundai Life 347 (3) 73,219 28 27 3,153
Kia Motor Company 17,223 (26) - 15,453 - 52,777
Hyundai Auto Ever
Systems
10,088 (27) - 1,554 2 35,912
Hyundai Engineering 2,392 (4) - 7 - 3,608
Others 24,603 (108) - 11,302 561 215,728
132,226 (314) 75,680 70,640 1,227 703,302
1
Unsettled amount of the corporate purchasing card amounting to 37,479 million is included

42
and the amounts used and redeemed for the six-month period ended June 30, 2018, are
285,437 million and 297,033 million, respectively.
2
Unused credit limit of the corporate purchasing card is included.
(in millions of
Korean won) December 31, 2017
Receivables Payables
Unused
credit limit2
Card
assets1
Provision for
impairment Others
Other
payables Others
Parent Company
Hyundai Motor
Company 41,856 (43) 2,134 39,068 - 168,144
Other related parties
Hyundai Capital 48,023 (67) 478 1,410 645 214,351
Kia Motor Company 12,138 (12) - 10,956 - 57,862
Hyundai Auto Ever
Systems 5,539 (10) - 4,152 2 40,461
Hyundai Life 342 (2) 79,302 8 27 9,658
Hyundai Engineering 3,598 (4) - 25 - 2,402
Others 42,654 (61) - 6,988 567 197,035
154,150 (199) 81,914 62,607 1,241 689,913
1
Unsettled amount of the corporate purchasing card amounting to 49,075 million is included
and the amounts used and redeemed for the year ended December 31, 2017, are 625,803
million and 632,648 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, 2018 and
Short-term employee benefits 6,872 3,931
Post-employment benefits 1,070 1,013
7,942 4,944
There were no fund transactions from the related parties for the six-month periods ended
June 30, 2018 and 2017.

43
There were no lending transactions with the related parties for the six-month periods ended
June 30, 2018 and 2017.
Dividend paid to the related parties for the six-month periods ended June 30, 2018 and 2017,
are as follows:
Parent company and others 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, 2018 and no collateral and payment
guarantees are provided by the related parties.
25. Transfers of Financial Assets
The Parent Company transferred receivables to Privia 5th SPC, Super Series 1st SPC,
Super Series 2nd SPC, Super Series 3rd SPC, Super Series 4th SPC and Super Series 5th
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, 2018 and December 31, 2017, are as follows:
Asset-backed card assets
Book amount of assets1
3,388,489 5,260,722
Book amount of the associated liabilities 1,853,931 1,882,348
1
The amount is before provision for impairment.
As at June 30, 2018, the Group has issued its securitization liabilities with card assets as an
underlying asset, and the related securitization liabilities have the right of recourse to the
underlying assets. As at June 30, 2018, the fair value of financial assets transferred but not
eliminated is 3,390,973 million and the fair value of related liabilities is 1,853,931 million
and net position is 1,537,042 million.

44
26. 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, 2018 and December 31, 2017, are as follows:
won) June 30, 2018
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 7,251 - 7,251 6,596 - 655
Financial liabilities
Derivative liabilities 43,518 - 43,518 6,596 - 36,922
won) December 31, 2017
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 10,003 - 10,003 1,253 - 8,750
Derivative liabilities 99,234 - 99,234 1,253 - 97,981

45
27. Fair Value of Financial Instruments
Fair value hierarchy classifications of the financial instruments that are subsequently
measured at fair value as at June 30, 2018 and December 31, 2017, are as follows:
(in millions of Korean won) June 30, 2018
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
972,991 972,991 - 971,366 1,625
Securities at fair value
through other
comprehensive
income2
1,484 1,484 - - 1,484
Derivatives assets 7,251 7,251 - 7,251 -
Financial liabilities at fair
value
Derivatives liabilities 43,518 43,518 - 43,518 -
1
As at June 30, 2018, among the securities at fair value through profit or loss in level 3, equity
instruments amounting to 1,625 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, 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.
(in millions of Korean won) December 31, 2017
Book
amount Fair value Level 1 Level 2 Level 3
Financial assets
Financial assets at fair
value
Financial asset held for
trading 993,466 993,466 - 993,466 -
Available-for-sale
financial assets1
1,767 1,767 - - 1,767
Derivatives assets 10,003 10,003 - 10,003 -
Financial liabilities at fair
value
Derivatives liabilities 99,234 99,234 - 99,234 -
1
As at December 31, 2017, among the available-for-sale financial assets of level 3, equity
instruments amounting to 1,767 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.

46
Items that are measured at fair value or for which the fair value is disclosed are categorized
by the fair value hierarchy levels, and the defined levels are as follows:
ŸQuoted prices (unadjusted) in active markets for identical assets or liabilities (Level 1).
ŸAll inputs other than quoted prices included in level 1 that are observable (either directly
that is, prices, or indirectly that is, derived from prices) for the asset or liability (Level 2).
ŸUnobservable inputs for the asset or liability (Level 3).
There are no changes in fair value hierarchy level for the three-month period ended June 30,
2018.
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 Level 2 fair value measurement:
(in millions of
Korean won)
Classification
Fair value
Fair value
hierarchy
Valuation techniques
Range of
inputsJune 30, 2018
December
31, 2017
Securities Assets 971,366 993,466 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
Interest rate
swap
Assets 6,185 10,003 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 7,659 2,764
Currency swaps Assets 1,066 - Level 2 Discount rates and forward rates
used to measure fair values of
currency swaps are determined
based on the applicable calibrated
market-based yield curve. 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.
N/A
Liabilities 35,859 96,470

47
The table below provides the fair value and carrying amount of financial instruments that are
not measured subsequently at fair value in the consolidated interim statements of financial
position as at June 30, 2018 and December 31, 2017.
won) June 30, 2018 December 31, 2017
Book amount Fair value Book amount Fair value
Assets
Financial assets
Cash and deposit 982,365 982,365 704,937 704,937
Card assets 12,742,671 13,036,240 12,757,825 12,991,932
Loan receivables 6,416 6,416 - -
Other financial assets 195,980 195,980 167,511 167,511
13,927,432 14,221,001 13,630,273 13,864,380
Liabilities
Borrowings 2,965,000 2,957,830 2,535,000 2,523,725
Debentures 7,945,470 7,966,255 7,610,237 7,664,970
Other financial liabilities 1,407,241 1,407,241 1,792,702 1,792,702
12,317,711 12,331,326 11,937,939 11,981,397

48
The valuation techniques of the financial instruments measured at amortized cost are as
follows:
Valuation techniques
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. Fair value is
determined by discounting the expected cash flows, which are contractual cash
flows adjusted by the expected prepayment 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
(Leasehold deposits
provided)
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 and
debenture
Fair value is calculated by DCF model at an appropriate interest rate for
respective range of maturity.
Other financial
liabilities (Leasehold
deposits received)
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 close to the reporting date, the carrying amount is regarded as fair
value.

49
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, 2018 and December 31, 2017.
(in millions of
Korean won) June 30, 2018
Level 1 Level 2 Level 3 Total
Financial assets
Card assets - - 13,036,240 13,036,240
Loan receivables - 6,416 6,416
Leasehold deposits
provided - 31,447 - 31,447
- 31,447 13,042,656 13,074,103
Borrowings - 2,957,830 - 2,957,830
Debentures - 7,966,255 - 7,966,255
Other financial liabilities
Leasehold deposits
received - 9,748 - 9,748
- 10,933,833 - 10,933,833
(in millions of
Korean won) December 31, 2017
Level 1 Level 2 Level 3 Total
Financial assets
Card assets - - 12,991,932 12,991,932
Leasehold deposits
provided - 33,703 - 33,703
- 33,703 12,991,932 13,025,635
Borrowings - 2,523,725 - 2,523,725
Debentures - 7,664,970 - 7,664,970
Other financial liabilities
Leasehold deposits
received - 9,369 - 9,369
- 10,198,064 - 10,198,064
The management of the Group anticipates that, except for the items described in the table
above, the carrying 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 that affect fair values
of financial assets and liabilities held by the Group for the six-month period ended, June 30,
2018.

50
28. Earnings per Share
(a) Basic earnings per share for the three-month and six-month periods ended June 30,
2018 and 2017, are as follows:
(in Korean won) 2018 2017
Three months Six months Three months Six months
Profit attributable to ordinary
shares (A) 51,304,512,841 77,390,149,614 77,610,008,224 130,804,287,180
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) 320 482 484 815
There are no discontinued operations for the six-month periods ended June 30, 2018 and
2017, 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.
29. Financial Risk Management
The Group is exposed to credit, liquidity and market risks (currency risk and interest rate
risk). 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 division and policies after
December 31, 2017.
30. Capital Management
The Parent Company (specialized credit finance company) must maintain adjusted capital
adequacy ratio in accordance with Specialized Credit Finance 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%.

51
Details of adjusted capital adequacy ratio as at June 30, 2018 and December 31, 2017, are
as follows:
Adjusted total assets (A) 14,574,308 14,168,970
Adjusted total capital (B) 2,532,520 2,455,988
Adjusted capital adequacy ratio (B/A) 17.38% 17.33%
31. Changes in Accounting Policies
The Group has applied Korean IFRS 1109 Financial Instruments, which was issued on
September 25, 2015, for the first time for their annual reporting period commencing January
1, 2018. Impact of the adoption of Korean IFRS 1109 on the Group’s consolidated financial
statements is as follows:
The Group’s categories and carrying amounts of financial assets per Korean IFRS 1039 and
1109 as at the initial application date are as follows:
Measurement categories Carrying amounts
December 31, 2017
(Korean IFRS 1039)
January 1, 2018
(Korean IFRS 1109)
Korean IFRS
10391
Reclassification Remeasurement
Korean IFRS
11091
Cash and due from financial
institutions
Financial assets at amortized
cost 704,937 - - 704,937
Financial assets held for trading:
debt securities
Financial assets at fair value
through profit or loss
853,461 - - 853,461
equity securities 140,005 - - 140,005
Others - - - -
Derivative financial assets Derivative financial assets 10,003 - - 10,003
Card assets
cost 12,757,825 - (81,069) 12,676,756
Available-for-sale financial
assets: equity securities
through other comprehensive
income 1,767
1,484 - 1,484
through profit or loss 283 - 283
cost 167,511 - (634) 166,877
14,635,509 1,767 (81,703) 14,553,806
1
Net of provision

52
The Group’s categories and carrying amounts of financial liability per Korean IFRS 1039 and
1109 as at the initial application date are as follows:
December 31, 2017
(Korean IFRS 1039)
January 1, 2018
(Korean IFRS 1109)
Korean IFRS
1039 Reclassification Remeasurement
Korean IFRS
1109
Derivative liabilities Derivative liabilities 99,234 - - 99,234
Borrowings
at amortized cost
2,535,000 - - 2,535,000
Debentures 7,610,237 - - 7,610,237
Other financial liabilities 1,786,488 - - 1,786,488
12,030,959 - - 12,030,959
The carrying amounts of the categories of financial assets per Korean IFRS 1109 as at the
initial application date are as follows:
(in millions of Korean won) Carrying amounts
Financial
assets at fair
value through
profit or loss
Financial assets
at fair value
through other
comprehensive
income
Financial
assets at
amortized
cost1
Derivative
instruments
designated for
hedging Total
Financial investments
Available-for-sale financial
assets 283 1,484 - - 1,767
1
Net of provision
On January 1, 2018 (the date of the initial application of Korean IFRS 1109), there were no
financial assets at fair value through profit or loss reclassified to financial assets at amortized
cost or financial assets at fair value through other comprehensive income.
On January 1, 2018 (the date of the initial application of Korean IFRS 1109), the Group did not
classify certain financial assets, other than financial assets at amortized cost as at January 1,
2018, to amortized cost.

53
The reconciliation of the ending allowances/provision in accordance with Korean IFRS 1039
to the opening allowances in accordance with Korean IFRS 1109 are as follows:
December 31, 2017
(Korean IFRS 1039)
January 1, 2018
(Korean IFRS 1109)
Korean IFRS
1039 Reclassification Remeasurement
Korean IFRS
1109
Loans and receivables
Card assets Financial assets at amortized cost 297,155 - 81,069 378,224
Other financial assets Financial assets at amortized cost 1,959 - 634 2,593
Provisions
Unused commitment and
guarantee
Unused commitment and
guarantee 54,404 - 30,148 84,552
353,518 - 111,851 465,369
On January 1, 2018 (the date of the initial application of Korean IFRS 1109), there is no impact
on other comprehensive income from the adoption of Korean IFRS 1109.
On January 1, 2018 (the date of the initial application of Korean IFRS 1109), the impact on
retained earnings from the adoption of Korean IFRS 1109 is as follows:
(in millions of Korean won) Impact of application
December 31, 2017 (before adoption of Korean IFRS 1109) 2,016,528
Recognition of expected credit losses on financial assets at
amortized cost (81,703)
Changes in unused commitment and guarantee (30,148)
Tax effect 27,067
January 1, 2018 (after adoption of Korean IFRS 1109) 1,931,744
Adoption of Korean IFRS 1115, Revenue from Contracts with Customers
As described in Note 2, the Group has applied Korean IFRS 1115, Revenue from Contracts
with Customers. In accordance with the transitional provisions in Korean IFRS 1115,
comparative figures have not been restated. The adoption of the amendment does not have a
significant impact on the consolidated financial statements.
32. Events After the Reporting Period
On July 5, 2018, the Group issued hybrid bonds amounting to 300 billion.

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