Hcc 3 q_eng

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

Hyundai Card Co., Ltd. and Subsidiaries
Index
September 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 - 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 September 30, 2018, and the
related consolidated interim statements of comprehensive income for the three-month and nine-month
periods ended September 30, 2018 and 2017, and consolidated interim statements of changes in equity
and cash flows for the nine-month periods ended September 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.
November 13, 2018
Seoul, Korea
This report is effective as of November 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
September 30, 2018 and December 31, 2017
(in Korean won) Notes
Assets
Cash and deposits 5,24,29,30
Cash and cash equivalents ￦ 1,495,089,614,788 ￦ 654,412,163,620
Deposits 76,520,600,000 50,524,500,000
1,571,610,214,788 704,936,663,620
Securities 6,29,30
Financial assets at fair value through profit or loss 1,223,478,093,790 -
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
1,224,961,668,790 995,232,564,802
Card assets 7,8,26,27,29,30
Card receivables 8,682,138,588,847 8,721,173,547,767
Provision for impairment (135,866,616,216) (84,338,059,074)
Short-term card loan 722,613,643,837 847,331,862,963
Long-term card loan 3,749,621,414,629 3,486,474,567,478
12,757,252,570,550 12,757,825,137,234
Loan receivables 7,8,29,30
Loan receivables 16,728,087,549 -
Provision for impairment (945,625,745) -
15,782,461,804 -
Property and equipment 9,26
Land 141,135,593,407 141,135,593,407
Buildings 153,194,711,892 153,112,422,428
Accumulated depreciation (21,265,887,704) (18,378,711,180)
Vehicles 2,514,088,391 2,514,088,391
Accumulated depreciation (753,981,819) (624,373,518)
Fixtures and equipment 238,587,602,739 220,299,985,094
Accumulated depreciation (168,817,779,101) (143,375,835,685)
Construction in progress 3,219,875,988 672,620,703
347,814,223,793 355,355,789,640
Other assets
Other receivables 29,30 128,616,523,258 84,796,316,310
Provision for impairment (311,626,610) (458,287,634)
Accrued revenue 29,30 49,926,443,126 50,969,812,148
Advance payments 98,730,650,474 30,246,334,975
Provision for impairment (224,922,409) (216,102,073)
Prepaid expenses 129,506,176,035 120,245,563,892
Intangible assets 10,26 108,636,554,759 124,100,132,534
Derivative assets 14,28,29,30 4,717,676,370 10,002,954,866
Deferred tax assets 23 150,987,886,984 145,821,706,670
Guarantee deposits provided 5,29,30 31,548,201,334 33,703,463,766
Others 4,651,224,253 5,435,182,572
704,485,003,986 603,146,636,549
Total assets ￦ 16,621,906,143,711 ￦ 15,416,496,791,845
December 31, 2017September 30, 2018
(Unaudited)
3

Consolidated Interim Statements of Financial Position
September 30, 2018 and December 31, 2017
(in Korean won)
Liabilities
Borrowings 11,25,29,30
Borrowings ￦ 2,865,000,000,000 ￦ 2,535,000,000,000
Debentures 7,778,769,027,006 7,610,236,853,058
10,643,769,027,006 10,145,236,853,058
Other liabilities
Other payables 26,29,30 1,952,607,287,474 1,385,784,959,853
Accrued expenses 29,30 159,208,061,432 220,571,277,243
Unearned revenue 361,600,530,237 346,812,832,289
Withholdings 29,30 113,954,706,494 186,341,825,335
Derivative liabilities 14,28,29,30 51,146,054,293 99,233,725,250
Current tax liabilities 14,943,283,144 46,593,089,060
Deferred tax liabilities 23 5,688,074 -
Net employee benefit liabilities 12 24,652,711,214 9,123,887,095
Guarantee deposits received 29,30 9,880,241,092 9,368,668,603
Provisions 13,25 114,815,571,098 97,053,617,960
2,802,814,134,552 2,400,883,882,688
Total liabilities 13,446,583,161,558 12,546,120,735,746
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 -
Accumulated other comprehensive income 17 (20,789,854,830) (6,182,687,024)
Retained earnings 16 2,036,841,983,028 2,016,527,869,168
Total equity 3,175,322,982,153 2,870,376,056,099
Total liabilities and equity ￦ 16,621,906,143,711 ￦ 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 Korea IFRS 1039, the previous standard.
(Unaudited)
September 30, 2018 December 31, 2017
4

Consolidated Interim Statements of Comprehensive Income
Three-Month and Nine-Month Periods Ended September 30, 2018 and 2017
Notes
Operating income
Card income 19,26,29 435,542,560,847 1,320,699,974,258 427,876,801,295 1,284,973,674,155
Effective interest method interest income 20,29 273,966,618,400 805,325,823,955 256,245,862,865 761,539,565,580
Gain on valuation and disposal of securities 856,857,514 2,542,203,616 (87,876,215) 1,195,474,848
Dividend income 16,052,487 496,178,118 - 162,417,126
Decrease in provision for unused credit limits 13 1,624,095,652 8,427,237,116 - -
Other operating income 21,26,29 5,472,064,508 109,559,160,609 8,350,043,935 165,955,837,309
717,478,249,408 2,247,050,577,672 692,384,831,880 2,213,826,969,018
Operating expenses
Card expenses 19,26,29 333,582,454,840 1,045,608,687,759 325,064,550,476 1,000,049,123,857
Interest expenses 20,29 65,777,165,106 194,785,034,559 60,365,777,115 181,447,230,492
Selling and administrative expenses 22,26 187,994,966,221 552,910,770,798 174,606,867,452 517,821,282,505
Securitization expenses 172,470,462 624,496,525 149,124,689 487,126,947
Impairment losses 29 27,008,560,974 82,285,146,672 21,428,178,007 61,084,166,905
Loss on disposal of loan receivables 25,29 43,431,786,180 123,746,365,863 38,235,159,580 110,744,154,889
Loss on valuation and disposal of securities 1,740,000 59,840,000 - -
Increase in provision for unused credit limits 13 - - 611,581,474 2,649,633,961
Other operating expenses 21,26,29 (4,792,403,921) 85,400,175,297 4,488,734,315 99,250,762,967
653,176,739,862 2,085,420,517,473 624,949,973,108 1,973,533,482,523
Operating profit 64,301,509,546 161,630,060,199 67,434,858,772 240,293,486,495
Non-operating income
Gain on disposal of property and equipment, and intangible assets 1,713,624 238,323,677 7,000 35,079,560
Rental income 864,917,069 2,551,527,015 869,413,302 2,589,738,570
Miscellaneous gain 187,609,491 646,126,242 152,176,150 2,138,625,904
1,054,240,184 3,435,976,934 1,021,596,452 4,763,444,034
Non-operating expenses
Loss on disposal of property and equipment, and intangible assets 70,000 138,266,235 54,528,149 803,921,201
Donations 283,653,751 566,531,895 218,193,400 4,248,813,341
Miscellaneous losses - - 39,932,151 39,932,151
283,723,751 704,798,130 312,653,700 5,092,666,693
Profit before income tax expense 65,072,025,979 164,361,239,003 68,143,801,524 239,964,263,836
Income tax expense 23 14,614,806,849 36,513,870,259 17,022,348,508 58,038,523,640
Profit for the period 50,457,219,130 127,847,368,744 51,121,453,016 181,925,740,196
Other comprehensive income 17
Items that will not be reclassified to profit or loss
Remeasurements of net defined benefit liabilities (1,514,368,414) (3,521,819,237) 857,169,954 (202,471,035)
Items that may be subsequently reclassified to profit or loss
Cash flow hedges 1,780,769,217 (11,085,348,569) 4,445,947,986 7,860,542,295
266,400,803 (14,607,167,806) 5,303,117,940 7,658,071,260
Total comprehensive income for the period 50,723,619,933 113,240,200,938 56,424,570,956 189,583,811,456
Earnings per share 31
Basic earnings per share 294 776 319 1,134
Diluted earnings per share 294 776 319 1,134
Period Ended September 30
(in Korean won)
2018
(Unaudited)
2017
(Unaudited)
Three months Nine months Three months Nine months
The consolidated interim statement of comprehensive income for the three-month and nine-month period ended September 30, 2017
The above consolidated interim statements of comprehensive income should be read in conjunction with the accompanying notes.
5

Consolidated Interim Statements of Changes in Equity
Nine-Month Periods Ended September 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
Dividends paid 　- 　- 　- - 　- (37,388,411,638) (37,388,411,638)
Total comprehensive income
Profit for the period 　- 　- 　- 　- 　- 181,925,740,196 181,925,740,196
Other comprehensive income
Remeasurements of net defined benefit liabilities 　- 　- 　- 　- (202,471,035) 　- (202,471,035)
Cash flow hedges 　- 　- 　- 　- 7,860,542,295 　- 7,860,542,295
Balance at September 30, 2017 (Unaudited) 802,326,430,000 45,399,364,539 12,305,079,416 - (20,915,064,195) 2,006,888,695,425 2,846,004,505,185
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 　- 　- 　- 　- 　- 127,847,368,744 127,847,368,744
Other comprehensive income
Remeasurements of net defined benefit liabilities 　- 　- 　- 　- (3,521,819,237) 　- (3,521,819,237)
Cash flow hedges 　- 　- 　- 　- (11,085,348,569) 　- (11,085,348,569)
Transactions with shareholders recognized directly in equity
Issuance of hybrid securities - - - 299,239,980,000 - - 299,239,980,000
Distribution from hybrid securities - - - - - (3,333,423,913) (3,333,423,913)
Balance at September 30, 2018 (Unaudited) 802,326,430,000 45,399,364,539 12,305,079,416 299,239,980,000 (20,789,854,830) 2,036,841,983,028 3,175,322,982,153
Total
AccumulatedReserves
Other
reserves earnings
Retainedother
comprehensive income
The consolidated interim statement of changes in equity for the nine-month period ended September 30, 2017
The above consolidated interim statements of changes in equity should be read in conjunction with the accompanying notes.
capital
Share
premium
Share Hybrid
securities
6

Consolidated Interim Statements of Cash Flows
Nine-Month Periods Ended September 30, 2018 and 2017
(in Korean won) Notes
Cash flows from operating activities
Cash generated from operating activities 24 409,333,696,037 302,047,953,372
Interests received 18,870,042,855 14,816,039,270
Interests paid (210,355,015,931) (212,539,867,177)
Dividends received 496,178,118 162,417,126
Income taxes paid (41,575,596,170) (48,878,867,895)
Net cash inflow from operating activities 176,769,304,909 55,607,674,696
Cash flows from investing activities
Acquisition of financial assets at fair value
through profit or loss (2,635,550,000) -
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 245,159,806 121,265,498
Disposal of intangible assets - 19,534,000
Acquisition of property and equipment (26,030,917,530) (23,742,538,633)
Acquisition of intangible assets (23,048,246,945) (27,054,040,453)
Net decrease in guarantee deposits provided 2,155,262,432 816,044,658
Net cash outflow from investing activities (49,284,002,537) (49,817,295,530)
Cash flows from financing activities
Proceeds from borrowings 2,235,000,000,000 1,810,000,000,000
Proceeds from issue of debentures 9,859,368,468,402 9,138,372,879,284
Repayment of borrowings (1,905,000,000,000) (715,000,000,000)
Repayment of debentures (9,756,000,000,000) (9,531,485,000,000)
Dividends paid (19,416,299,606) -
Issuance of hybrid securities 299,239,980,000 -
Net cash inflow from financing activities 713,192,148,796 701,887,879,284
Net increase in cash and cash equivalents 840,677,451,168 707,678,258,450
Cash and cash equivalents at the beginning of the period 24 654,412,163,620 544,794,485,545
Cash and cash equivalents at the end of the period 24 1,495,089,614,788 1,252,472,743,995
The consolidated interim statement of cash flows for the nine-month period ended September 30, 2017
The above consolidated interim statements of cash flows should be read in conjunction with the accompanying notes.
2018 2017
Nine-month period ended September 30
(Unaudited) (Unaudited)
7

Notes to the Consolidated Interim Financial Statements
September 30, 2018 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 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 September 30, 2018, the Company has approximately 7.38 million card members, 2.57
million registered merchants, and 66 marketing centers and branches.
As at September 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 September
30, 2018 and December 31, 2017, are as follows:
September 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
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 September 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 shall make this election separately for each associate of joint venture, at
initial recognition of the 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

10
cash-settled to equity-settled. Amendments also clarify that the measurement approach
should treat the terms and conditions of a cash-settled award in the same way as for an
equity-settled award. The amendment does 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 the transitional provisions in Korean IFRS 1109,
comparative figures have not been restated, and the differences between previous book
amounts and book amounts at the date of initial application are recognized to retained
earnings. See Note 34 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 the transition provisions in Korean IFRS 1115, comparative figures have
not been restated.
(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 which lease term is 12 months or more 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.

11
The Group performed an impact assessment to identify potential financial effects of applying
Korean IFRS 1116. The Group is analyzing the effects on the financial statements based on
available information as at September 30, 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 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 Financial Assets
The Group applied the new standard for 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 the entity’s business model for managing financial assets and the
contractual cash flow characteristics of the 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
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

12
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 for
the collection of the
contractual cash flows
Measured at amortized cost1
Recognized at fair value
through profit or loss2
Hold the financial asset for
the collection of the
contractual cash flows and
trading
Recognized at fair value through
other comprehensive income 1
Hold for trading
Recognized at fair value through
profit or loss
1
A designation at fair value through profit or loss is allowed only if such designation
mitigates an accounting mismatch (irrevocable).
2
Equity investments not held for trading can be recorded in other comprehensive income
(irrevocable).
(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.

13
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 September 30, 2018, and the
related consolidated interim statements of comprehensive income for the three-month and
nine-month period ended September 30, 2018, changes in equity and cash flows for the nine-
month period ended September 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
34.

14
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.

15
4. Consolidated Subsidiaries
Details of the consolidated subsidiaries as at September 30, 2018 and December 31, 2017,
are as follows:
Ownership interest held by
the Group (%)
Main business Location
September
30, 2018
December
31, 2017
Closing
month
Privia 4th SPC1
Asset securitization Korea - 0.5 December
Privia 5th SPC1 Asset securitization Korea - 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
In determining power over subsidiaries except for Bluewalnut Co., Ltd. and Money Market
Trust, voting rights or similar rights are not major components, accordingly, these subsidiaries
are considered as structured entities.
Above subsidiaries except for Money Market Trust and Bluewalnut Co., Ltd. are special
purpose companies (SPCs) that were established for business activities of consolidated
entities. The Parent Company, Hyundai Card Co., Ltd., is considered to have control over
SPCs as the Parent Company has involved in purpose and design of SPC establishments and
the Parent Company is exposed to certain risks and rewards of SPCs. Also, all the decision-
making processes of SPCs are operated on autopilot by arrangements and articles of
association, and the Parent Company has ability to make changes in arrangements and
articles of association. Accordingly, the Parent Company included SPCs under consolidation.
Meanwhile, when event of default occurs from derivative contracts regarding asset-backed
securities issued by SPCs, the Parent Company may be liable for reimbursement of losses
incurred on counterparties.

16
Details of the Group’s subsidiaries as at September 30, 2018 and December 31, 2017, are
as follows:
(in millions of Korean September 30, 2018
won)
Assets Liabilities
Operating
income
Profit (loss) for
the period
Comprehensive
income (loss)
Super Series 1st SPC 461,077 460,837 22,951 - 271
Super Series 2nd SPC 300,099 300,099 4,002 - -
Super Series 3rd SPC 467,576 465,723 22,485 - (818)
Super Series 4th SPC 341,595 340,381 17,215 - (888)
Super Series 5th SPC 318,216 322,884 18,396 - (1,338)
Bluewalnut Co., Ltd. 22,124 7,649 2,702 (2,432) (2,494)
Money Market Trust 1,301,053 - 1,053 1,053 1,053
(in millions of Korean December 31, 2017
won)
Assets Liabilities
Operating
income
Profit (loss) for
the period
Comprehensive
income (loss)
Prvia 4th SPC 24 - 25,201 24 -
Privia 5th SPC 100,088 100,088 7,135 - -
Super Series 1st SPC 461,098 461,214 63,411 - 2,808
Super Series 2nd SPC 300,115 300,115 5,369 - -
Super Series 3rd SPC 467,595 464,667 62,745 - 2,120
Super Series 4th SPC 341,611 339,229 24,599 - 1,809
Super Series 5th SPC 318,152 321,061 8,227 - (2,210)
Bluewalnut Co., Ltd. 11,007 6,845 1,355 (2,699) (2,706)
Money Market Trust 641,195 - 195 195 195
There are no subsidiaries newly included during the nine-month period ended September 30,
2018.
Subsidiaries excluded from the consolidation during the nine-month period ended September
30, 2018:
Name of subsidiary Reason
Prvia 4th SPC Liquidation
Privia 5th SPC Liquidation
Non-controlling interests
Non-controlling interests of consolidated special-purpose company (“SPC”) have been
measured at initial acquisition cost because they do not have any right of residual income.
Also, the Group does not state non-controlling interests as capital, but as liability.

17
5. Restricted Financial Assets
Details of restricted financial assets as at September 30, 2018 and December 31, 2017, are
as follows:
(in millions of Korean won) September
30, 2018
December
31, 2017 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 7 Social enterprise fund
Citibank 104,112 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.
134,426 112,228
6. Securities
Securities as at September 30, 2018 and December, 31 2017, are as follows:
(in millions of Korean won)
September 30,
2018
December 31,
2017
Financial assets at fair value through profit or loss
Debt securities 760,414 -
Equity securities 462,781 -
Unlisted equity securities 283 -
1,223,478 -
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
1,224,962 995,233

18
7. Card Assets and Loan Receivables
Details of card assets and loan receivables by customers as at September 30, 2018 and
December 31, 2017, are as follows:
(in millions of September 30, 2018
Korean won)
Principal
Deferred
origination
cost and fee
Present
value of
discounts
Provision for
impairment
Carrying
amount
Card receivables
Household 7,884,058 (16,638) (12,642) (129,658) 7,725,120
Corporates 827,361 - - (6,209) 821,152
Short-term card loan
Household 722,614 - - (38,220) 684,394
Long-term card loan
Household 3,750,278 - (657) (223,034) 3,526,587
Loan receivables
Household 16,728 - - (946) 15,782
13,201,039 (16,638) (13,299) (398,067) 12,773,035
(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

19
Changes in card assets and loan receivables which have significant impact on provisions for
impairment for the nine-month period ended September 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 421,168 (407,730) (13,438) 49,469 (49,465) (4)
Transfer to assets
measured at lifetime
expected credit losses (520,236) 520,338 (102) (63,474) 63,475 (1)
Impairment (5,854) (4,684) 10,538 (1,788) (1,066) 2,854
New and removal 70,821 9,483 (231) (49,312) (19,230) 1,342
Written-off (2,351) (1,254) (784) (1,286) (614) (207)
Disposal and repurchase (55,801) (51,345) (5,045) (31,893) (21,614) (1,904)
Ending balance 7,578,021 1,121,734 11,664 512,713 204,493 5,408
(in millions of Korean won) 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 2,654,544 680,477 152,093 - - - 13,082,372
Transfer to assets
measured at 12-month
expected credit losses 127,221 (127,198) (23) - - - -
Transfer to assets
measured at lifetime
expected credit losses (340,126) 340,309 (183) - - - -
Impairment (6,821) (3,766) 10,587 - - - -
New and removal 392,241 (14,326) 15,118 14,631 2,122 3 422,662
Written-off (3,024) (1,643) (1,099) - - - (12,262)
Disposal and repurchase (68,525) (46,631) (8,947) - (28) - (291,733)
Ending balance 2,755,510 827,222 167,546 14,631 2,094 3 13,201,039

20
8. Provisions for Impairment of Card Assets and Loan Receivables
Changes in provisions for impairment of card assets and loan receivables for the nine-month
periods ended September 30, 2018 and 2017, are as follows:
2018
(in millions of
Korean won)
Card receivables Short-term card loan
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 between
stages
Transfer to assets
measured at 12-
month expected
credit losses 27,511 (27,382) (129) 4,769 (4,767) (2)
Transfer to assets
measured at
lifetime expected
credit losses (6,816) 6,874 (58) (1,793) 1,794 (1)
Impairment (152) (513) 665 (62) (116) 178
Written-off (2,351) (1,254) (784) (1,286) (614) (207)
Recovered 300 20 33 131 8 13
Disposal and
repurchase (10,311) (7,184) (1,749) (5,923) (3,056) (847)
Additional (reversal
of) provisions (10,894) 30,563 4,542 1,208 4,178 2,276
Ending balance 47,275 81,980 6,612 13,249 21,837 3,134
2018
(in millions of
Korean 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 between
stages
Transfer to assets
measured at 12-
month expected
credit losses 9,919 (9,904) (15) - - - -
Transfer to assets
measured at
lifetime expected
credit losses (9,727) 9,862 (135) - - - -
Impairment (263) (356) 619 - - - -
Written-off (3,023) (1,644) (1,099) - - - (12,262)
Recovered 242 4 47 - - - 798
Disposal and
repurchase (12,459) (5,231) (4,189) - (1) - (50,950)
Additional (reversal
of) provisions 16,402 17,195 15,841 705 241 1 82,258
Ending balance 73,274 60,740 89,020 705 240 1 398,067

21
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 Korean won) 2017
Card
receivables
Cash
advances Card loans Total
Beginning balance 85,887 30,728 167,123 283,738
Written-off (2,328) (906) (3,119) (6,353)
Recovered 296 142 199 637
Disposal and repurchase (18,390) (10,051) (21,225) (49,666)
Additional provisions 21,819 9,603 31,064 62,486
Ending balance 87,284 29,516 174,042 290,842
9. Property and Equipment
Changes in property and equipment for the nine-month periods ended September 30, 2018
and 2017, are as follows:
(in millions of 2018
Korean won)
Land Buildings Vehicles
Fixtures
and
equipment
Construction
-in-progress Total
Beginning balance 141,136 134,734 1,890 76,924 672 355,356
Acquisitions - 82 - 20,179 2,788 23,049
Reclassification - - - 241 (241) -
Disposal - - - (120) - (120)
Depreciation - (2,887) (130) (27,454) - (30,471)
Ending balance 141,136 131,929 1,760 69,770 3,219 347,814
Korean won)
Land Buildings Vehicles
Fixtures
and
equipment
Construction
-in-progress Total
Beginning balance 141,136 111,978 2,075 73,007 35,076 363,272
Acquisitions - 3,802 - 19,642 322 23,766
Reclassification - 21,727 - 12,971 (34,883) (185)
Disposal - - - (1,047) - (1,047)
Depreciation - (2,693) (139) (26,664) - (29,496)
Ending balance 141,136 134,814 1,936 77,909 515 356,310

22
10. Intangible Assets
Changes in intangible assets for the nine-month periods ended September 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 9,610 3,870 - 3,506 - 16,986
Reclassification 3,974 473 5 (5,783) - (1,331)
Disposal (128) - (10) - - (138)
Amortization (24,545) (6,170) (265) - - (30,980)
Ending balance 66,917 16,329 205 5,375 19,811 108,637
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 12,876 2,579 4 8,448 - 23,907
Reclassification 7,589 488 2 (8,046) - 33
Disposal - (19) - - - (19)
Amortization (22,013) (5,744) (266) - - (28,023)
Ending balance 73,919 17,605 564 8,685 19,811 120,584

23
11. Borrowings
Details of borrowings as at September 30, 2018 and December 31, 2017, are as follows:
(in millions of Korean won) Annual interest
rate (%)
September
30, 2018
December 31,
2017
Short-term borrowings
Commercial Paper Shinhan Bank and 4 others 2.15 ~ 2.35 395,000 545,000
Borrowings
Korea Development Bank and 10
others
2.72 ~ 3.10 470,000 390,000
865,000 935,000
Current portion of long-term borrowings
Commercial Paper
KTB Investment Securities and
other
1.88 ~ 1.89 250,000 -
Borrowings Shinhan Bank and other 2.85 ~ 2.95 80,000 200,000
330,000 200,000
Long-term borrowings
Commercial Paper
KTB Investment Securities and 9
others
1.62 ~ 2.55 1,670,000 1,370,000
Borrowings - - - 30,000
1,670,000 1,400,000
2,865,000 2,535,000
Details of debentures as at September 30, 2018 and December 31, 2017, are as follows:
(in millions of Korean won) Annual interest
rate (%) Maturity
September
30, 2018
December
31, 2017
Short-term debentures - - - 70,000
Current portion of debentures 1.52 ~ 4.75
2018.10.01 ~
2019.09.27
2,588,890 2,175,280
Long-term debentures 1.60 ~ 3.73
2019.10.02 ~
2027.09.19
5,197,763 5,374,966
7,786,653 7,620,246
Less: Discounts on debenture (7,884) (10,009)
7,778,769 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
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 nine-month
periods ended September 30, 2018 and 2017, is as follows:
(in millions of Korean won) 2018 2017
Defined contribution plan 230 138
12.2 Net Employee Benefit Liabilities
Details of net employee benefit liabilities as at September 30, 2018 and December 31, 2017,
are as follows:
September 30,
2018
December 31,
2017
Net defined benefit liabilities 19,370 4,160
Long-term employee benefit liabilities 5,282 4,964
24,652 9,124
12.3 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 nine-month periods ended
September 30, 2018 and 2017, are as follows:
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 10,650 - - 10,650
Interest expense (income) 2,123 (1,963) - 160
Return on plan assets
(excluding amounts
included in interest income)
- 1,013 - 1,013
Actuarial loss from change
in financial assumptions
3,669 - - 3,669
Transfer of employees
between the Company and
its related companies
(265) 534 - 269
Benefits paid (8,963) 8,411 - (552)
Ending balance 97,158 (77,772) (16) 19,370
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 10,351 - - 10,351
Interest expense (income) 1,702 (1,478) - 224
Return on plan assets
(excluding amounts
included in interest income)
- 677 - 677
Actuarial gain from change
in financial assumptions
(2,260) - - (2,260)
Actuarial loss from
experience adjustments
1,868 - - 1,868
Transfer of employees
between the Company and
its related companies
2,354 (1,360) - 994
Benefits paid (4,489) 3,624 1 (864)
Ending balance 95,491 (75,023) (16) 20,452

26
12.4 Long-term Employee Benefits
Changes in present value of long-term employee benefit liabilities for the nine-month periods
ended September 30, 2018 and 2017, are as follows:
Beginning balance 4,964 4,644
Current service cost 373 410
Interest expense 103 97
Actuarial loss 445 352
Benefits paid (603) (309)
Ending balance 5,282 5,194
13. Provisions
Changes in provisions for the nine-month periods ended September 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
Reversal (8,427) (1,634) (222) (3) (10,286)
Others - - 373 (2,473) (2,100)
Ending balance 76,125 25,872 5,447 7,372 114,816
(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) 2,650 (1,267) (947) - 436
Others - - 215 (3,625) (3,410)
Ending balance 59,831 22,223 4,978 10,567 97,599
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 September 30, 2018.

27
Changes in provision for unused commitment for the nine-month periods ended September
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
19,786 (19,786) - -
Transfer to assets measured
at lifetime expected credit
losses
(3,430) 3,430 - -
Impairment (4) (11) 15 -
Provision (reversal) (20,050) 11,904 (281) (8,427)
Ending balance 40,994 35,131 - 76,125
1
30,148 million was recognized in the beginning balance due to initial application of Korean
IFRS 1109.
Beginning balance 57,181
Provision 2,650
Ending balance 59,831

28
14. Derivatives and Hedge Accounting
There are no derivative instruments held for trading as at September 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.
Details of derivative assets and liabilities as at September 30, 2018 and December 31, 2017,
are as follows:
(in millions of September 30, 2018
Korean won)
Unsettled
contract
amount Asset Liabilities
Accumulated
other
comprehensive
income1
Interest rate swap 2,655,000 4,718 8,440 (2,822)
Currency swap 1,546,653 - 42,706 (1,030)
4,201,653 4,718 51,146 (3,852)
(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 December 22, 2025.
Meanwhile, there is no ineffective portion recognized related to cash flow hedge for the nine-
month periods ended September 30, 2018 and 2017.

29
The average hedge ratio of derivative assets and liabilities as at September 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
Over
5 years Total
Nominal amount the
hedged item
2,051,440 1,148,430 368,022 265,108 360,000 50,000 4,243,000
Nominal amount the
hedging instrument
2,051,440 1,148,430 368,022 265,108 360,000 50,000 4,243,000
Average hedge ratio 100% 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 September 30, 2018, are as follows:
(in millions of Korean won) Issue date Maturity date Interest rate
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

30
16. Retained Earnings
Retained earnings as at September 30, 2018 and December 31, 2017, consist of:
September 30,
2018
December 31,
2017
Legal reserves1
50,808 45,127
Reserves for electronic financial transaction 1,000 -
Regulatory reserve for credit losses (Note 18) 698,019 657,774
Unappropriated retained earnings 1,287,015 1,313,627
2,036,842 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 nine-month periods ended September 30, 2018 and 2017,
are as follows:
Beginning balance 2,016,528 1,862,351
Changes in accounting policies (84,784) -
Profit for the period 127,847 181,926
Dividends paid (19,416) (37,388)
Distribution from hybrid securities (3,333) -
Ending balance 2,036,842 2,006,889
Dividends paid for the nine-month period ended September 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
Ordinary shares 160,465,286 160,465,286 121 19,416

31
17. Accumulated Other Comprehensive Income
Changes in accumulated other comprehensive income for the nine-month periods ended
(in millions of Korean
won) 2018
Changes
Beginning
balance
Reclassification
of profit or loss Other Tax effects
Ending
balance
Gain (loss) on valuation of
derivatives
7,233 484 (15,088) 3,519 (3,852)
Remeasurements of net
defined benefit liabilities
(13,416) - (4,683) 1,161 (16,938)
(6,183) 484 (19,771) 4,680 (20,790)
won) 2017
Changes
Beginning
balance
Reclassification
of profit or loss Other Tax effects
Ending
balance
Gain (loss) on valuation of
derivatives
(9,429) 2,206 8,138 (2,483) (1,568)
Remeasurements of net
defined benefit liabilities
(19,144) - (284) 81 (19,347)
(28,573) 2,206 7,854 (2,402) (20,915)
18. Regulatory Reserve for Credit Losses
Details of regulatory reserves for credit losses as at September 30, 2018 and December 31,
2017, are as follows:
September 30,
2018
December 31,
2017
Beginning 698,019 657,774
Estimated reversal due to changes in
accounting policies
(69,084) -
Amount estimated to be appropriated 92,249 40,245
Ending 721,184 698,019

32
Estimated provision of reserves for credit losses and adjusted profit after provision of reserves
for credit losses for the nine-month periods ended September 30, 2018 and 2017, are as
follows:
Amount estimated to be reversal 92,249 37,591
Adjusted profit after provision of reserves for
credit losses 35,598 144,335
Earnings per share after provision of reserves
for credit losses (in Korean won) 222 899
19. Card Income and Expense
Details of card income and expense for the three-month and nine-month periods ended
Three Months Nine Months Three Months Nine Months
Card income
Agent commission 345,452 1,042,867 338,887 1,016,118
Commission income from life service 5,858 19,470 4,167 10,493
Overseas commission income 8,103 27,599 7,856 22,923
Income from annual subscription 44,377 132,004 43,564 129,671
Others 31,753 98,760 33,403 105,769
435,543 1,320,700 427,877 1,284,974
Card expense
Acquisition fee 35,135 116,187 43,980 144,997
Promotion 44,065 179,949 45,584 182,206
Service fee 179,997 530,412 163,349 473,264
Financial service fee 1,636 5,264 1,979 5,958
A new credit sale handling fee 41,020 118,770 39,248 108,339
Overseas payment fee 17,975 51,683 16,505 45,431
Card issuance expenses 6,798 20,231 6,451 18,125
Others 6,956 23,113 7,969 21,729
333,582 1,045,609 325,065 1,000,049

33
20. Interest Income and Expense
Interest income and expense for the three-month and nine-month periods ended September
Interest income
Income from installment service 58,126 170,715 50,658 144,748
Income from short-term card loan 30,725 94,498 32,461 95,472
Income from long-term card loan
(general card loan)
128,296 375,120 117,459 356,772
Income from long-term card loan
(refinancing loan)
2,165 6,730 2,169 6,462
Revolving interest income 46,753 138,153 48,038 142,521
Loans receivable income 319 374 - -
Other interest income 7,583 19,736 5,461 15,565
273,967 805,326 256,246 761,540
Interest expense
Borrowings 17,337 48,371 12,760 33,021
Debentures 48,349 146,293 47,614 148,382
Others 91 121 (8) 44
65,777 194,785 60,366 181,447

34
21. Other Operating Income and Expenses
Other operating income and expense for the three-month and nine-month periods ended
Other operating income
Gain on foreign currency
transactions
4,951 14,666 8,655 36,339
Gain on foreign currency
translations
- - (9,010) 49,440
Gain on valuation of derivatives (12,510) 57,407 2,130 2,460
Others 13,031 37,486 6,575 77,717
5,472 109,559 8,350 165,956
Other operating expenses
Loss on foreign currency
transactions
1,225 4,927 1,454 4,501
Loss on foreign currency
translations
(12,510) 57,407 2,130 2,460
Loss on derivatives transactions - - 3,881 22,035
Loss on valuation of derivatives - - (9,010) 49,440
Others 6,493 23,066 6,034 20,815
(4,792) 85,400 4,489 99,251

35
22. Selling and Administrative Expenses
Details of selling and administrative expenses for the three-month and nine-month periods
ended September 30, 2018 and 2017, are as follows:
Salaries 43,030 133,487 40,239 110,238
Post-employment benefits 11,905 21,940 3,900 12,376
Employee benefits 5,785 20,821 5,966 19,104
Travel expenses 449 1,701 759 2,157
Communication expenses 9,127 25,842 8,411 23,856
Postal expenses 3,056 9,850 3,831 12,101
Rental expenses 7,444 22,868 6,276 20,443
Taxes and dues 4,993 15,910 5,045 15,080
Repair and maintenance
expenses
318 1,028 334 987
Insurance premiums 71 275 101 221
Entertainment expenses 160 372 156 339
Advertising expenses 8,822 27,643 10,652 33,817
Supply expenses 770 2,344 895 2,814
Vehicle maintenance expenses 4 12 4 12
Periodicals expenses 59 196 56 201
Book and magazine expenses 952 3,200 1,558 4,629
Training expenses 513 1,772 1,065 3,164
IT expenses 12,032 37,699 12,753 37,611
Expense for temporary staff 1,553 4,370 1,395 4,014
Professional service expenses 44,092 121,701 38,847 116,978
Delivery commission 270 822 286 903
Commission expenses 8,321 25,768 7,468 23,545
Business activity expenses 477 1,661 931 2,502
Construction expenses 390 1,137 801 3,708
Depreciation 9,975 30,471 10,235 29,496
Amortization 10,438 30,980 9,654 28,023
Event expenses 66 505 173 1,724
Conference expenses 89 363 115 301
Building administrative expenses 2,834 8,173 2,701 7,477
187,995 552,911 174,607 517,821

36
23. Tax Expense
Income tax expense for the nine-month periods ended September 30, 2018 and 2017, consists
of:
Current tax on profits for the period (including
additional payment of tax and income tax
refund) 9,926 62,565
Changes in deferred tax assets 21,908 (2,125)
Income tax expense reflected directly to equity 4,680 (2,401)
Income tax expense 36,514 58,039
Income tax expenses reflected directly to equity for the nine-month periods ended September
Beginning
balance Increase
Ending
balance
Tax effect related to cash flow
hedges (2,289) 3,518 1,229
Tax effect related to
remeasurements of net
defined benefit liabilities 4,246 1,162 5,408
1,957 4,680 6,637
Beginning
balance
Increase
(decrease)
Ending
balance
Tax effect related to cash flow
hedges 2,980 (2,483) 497
Tax effect related to
remeasurements of net
defined benefit liabilities 6,050 82 6,132
9,030 (2,401) 6,629

37
A reconciliation between income before income tax and income tax expense for the nine-
month periods ended September 30, 2018 and 2017, is as follows:
Profit before income tax 164,361 239,964
Income tax based on statutory tax rate
(rate: 11%, 22%, 24.2%) 39,313 57,609
Add (deduct):
Others (2,799) 430
Income tax expense for continuing operations 36,514 58,039
Effective tax rates 22.22% 24.19%
24. Consolidated Interim Statements of Cash Flows
Details of cash and cash equivalents as at September 30, 2018 and December 31, 2017, are
as follows:
(in millions of Korean won) September 30, 2018 December 31, 2017
Current deposit 258 223
Ordinary deposit 303,823 225,278
Short-term financial instruments 25,000 15,000
Other cash and cash equivalents 1,166,009 413,911
1,495,090 654,412
Cash generated from operations for the nine-month periods ended September 30, 2018 and
Adjustments:
Income tax expense 36,514 58,039
Interest expense 194,785 181,447
Impairment loss 82,285 61,084
Loss on disposal of loan receivables 123,747 110,744
Loss on valuation of financial assets at fair
value through profit or loss
60 -
Post-employment benefits 11,040 10,714
Depreciation 30,471 29,496
Amortization 30,980 28,023

38
Loss on foreign currency translations 57,407 2,460
Loss on valuation of derivatives - 49,440
Loss on disposal of property, plant and
equipment and intangible assets
138 804
Sales promotional expenses 32,548 25,803
Other operating expenses 1,794 1,875
Addition (reversal) of provision (10,287) 435
Interest income (19,736) (15,564)
Dividend income (496) (162)
Gain on valuation of financial assets at fair
(2,064) -
Gain on disposal of financial assets at fair
(30) -
Gain on valuation of financial assets held for
trading
- (871)
Gain on disposal of available-for-sale financial
assets
- (22)
Gain on foreign currency translation - (49,440)
Gain on valuation of derivatives (57,407) (2,460)
Amortization of present value of discounts of
card assets
(30,655) (24,044)
Amortization of deferred origination cost and
fee of card assets
(24,739) (23,633)
Gains on disposal of property, plant and
equipment and intangible assets
(238) (35)
Other operating income - (24)
456,117 444,109
Changes in operating assets and liabilities:
Increase in financial assets at fair value
through profit or loss
(225,090) -
Decrease in financial assets held for trading - 52,003
Increase in card assets (279,455) (315,818)
Increase in other receivables (43,820) (17,140)
Increase in other assets (98,053) (14,137)
Increase (decrease) in other payables 577,363 (15,929)
Increase (decrease) in withholdings (72,387) 7,557
Decrease in accrued expenses (45,128) (32,605)
Increase in other liabilities 11,940 12,082
(174,630) (323,987)
Cash generated from operations 409,334 302,048

39
25. Contingencies and Commitments
(a) Credit line agreement
The followings is credit line agreement as at September 30, 2018 and December 31, 2017.
Financial
instrument
September 30,
2018
December 31,
2017
Intraday overdraft limit
and others
Woori Bank
and 6 others
242,500 342,500
(b) Revolving credit facility
As the Group has a revolving credit facility agreement with many financial institutions for credit
line as at September 30, 2018, the Group made a revolving credit facility agreement for
1,407.5 billion with Kookmin Bank and 15 others for credit line as at September 30, 2018.
(c) 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.
(d) Pending litigations
As at September 30, 2018, the Group is involved in 20 cases ( 35,003 million) as a defendant,
5 cases (20,076 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 13).
(e) Deposit for loss reimbursement
As at September 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 13).
(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. 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

40
contract. As a result, losses on disposal of loans receivable amounting to 123,746 million
and 110,744 million for the nine-month periods ended September 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 16).
(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.
Meanwhile, when event of defaults occurs from derivative contracts regarding asset-backed
securities issued by Super Series 1st SPC, Super Series 3rd SPC, Super Series 4th SPC and
Super Series 5th SPC, the Parent Company may be liable for reimbursement of losses
incurred on counterparties.
(j) Agreement relating to borrowing liability
As at September 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.

41
26. Related Party Transactions
As at September 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, Fubon Hyundai Life (formerly,
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,
HMC Investment Securities Co., Ltd., Hyundai Capital, Hyundai
Commercial, Hyundai KEFICO, Hyundai Powertech, Hyundai
Partecs, Hyundai Advanced Materials, 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

42
Sales and purchases with related parties for the nine-month periods ended September 30,
2018 and 2017, are as follows:
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
96,861 - - - 196 630 - - -
Other related
parties
Hyundai Capital 2 874 21,733 24,053 2,138 16,779 - - 117,035
Fubon Hyundai Life
(formerly, Hyundai
Life)
1,064 39 - - 3,181 125 - - -
Kia Motor Company 47,933 - - - - 149 - - -
Hyundai Auto Ever
Systems
3,134 - - 85 47,522 8 149 15,869 -
Hyundai Engineering 12 4 - - 7,598 1 - - -
Others 1,828 812 2,127 79 5,203 1,911 - - -
150,834 1,729 23,860 24,217 65,838 19,603 149 15,869 117,035
1
Impairment loss on card assets due from related party amounting to 502 million is
included.
2
The book amount before disposal (before deducting provision for impairment) is 291,732
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
97,598 - - 3,290 404 281 - - -
Other related
parties
Hyundai Capital 382 882 17,284 15,027 2,019 17,191 - - 116,922
Hyundai Life 2,385 114 - 20 3,738 (4) - - -
Kia Motor Company 47,570 - - - 4 (18) - - -
Hyundai Auto Ever
Systems
3,262 - - 48 52,215 (4) 16 13,064 -
Hyundai Engineering 13 6 - - 7,312 - - - -
Others 2,775 792 720 513 6,300 1,751 3,160 - -
153,985 1,794 18,004 18,898 71,992 19,197 3,176 13,064 116,922

43
1
Reversal of provision for impairment on card assets due from related party amounting to
131 million is included.
2
The book amount before disposal (before deducting provision for impairment) is 277,742
million.
Outstanding balances arising from sales/purchases of goods and services as at September
30, 2018 and December 31, 2017, are as follows:
(in millions of
Korean won) September 30, 2018
Receivables Payables
Unused
credit limit2
Card
assets1
Provision for
impairment Others
Other
payables Others
Parent Company
Hyundai Motor
Company
49,674 (288) 2,134 44,268 - 160,326
Other related parties
Hyundai Capital 25,602 (92) 327 1,924 637 218,636
Fubon Hyundai Life
(formerly, Hyundai Life)
1,827 (127) 73,574 83 27 1,673
Kia Motor Company 40,104 (60) - 16,813 - 29,896
Hyundai Auto Ever
Systems
6,656 (18) - 4,832 2 39,344
Hyundai Engineering 2,966 (4) - 7 - 3,034
Others 39,338 (112) - 6,177 561 205,092
166,167 (701) 76,035 74,104 1,227 658,001
1
Unsettled amount of the corporate purchasing card amounting to 31,523 million is included
and the amounts used and redeemed for the nine-month period ended September 30, 2018,
are 462,750 million and 480,301 million, respectively.
2
Unused credit limit of the corporate purchasing card is included.

44
(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 nine-month periods ended September 30, 2018
and 2017, are as follows:
Short-term employee benefits 10,015 6,679
Post-employment benefits 1,682 1,546
11,697 8,225

45
There were no fund transactions from the related parties for the nine-month periods ended
September 30, 2018 and 2017.
There were no lending transactions with the related parties for the nine-month periods ended
September 30, 2018 and 2017.
Dividend paid to the related parties for the nine-month periods ended September 30, 2018 and
Parent company and others 18,829 36,259
There are no payment guarantees and collateral provided by the Group for the financial
supports to the related parties as at September 30, 2018 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 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 September 30, 2018 and December 31, 2017, are as follows:
Asset-backed card assets
September 30,
2018
December 31,
2017
Book amount of assets1 3,401,403 5,260,722
Book amount of the associated liabilities 1,842,253 1,882,348
1
The amount is before provision for impairment.
As at September 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
about the underlying assets. As at September 30, 2018, the fair value of financial assets
transferred but not eliminated is 3,403,282 million and the fair value of related liabilities is
1,838,925 million and net position is 1,564,357 million.

46
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 September 30, 2018 and December 31, 2017, are as
follows:
won) September 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 4,718 - 4,718 4,438 - 280
Financial liabilities
Derivative liabilities 51,146 - 51,146 4,438 - 46,708
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

47
29. Financial Instruments by Category
Carrying amount and fair value of financial instruments by category as at September 30, 2018
and December 31, 2017, are as follows:
won) September 30, 2018
Financial
assets at
amortized
cost
Financial assets
at fair value
through profit or
loss
Financial assets
at fair value
through other
comprehe-nsive
income
Derivative
instruments
for hedging Total
Financial assets
Cash and deposits 1,571,610 - - - 1,571,610
Securities - 1,223,478 1,484 - 1,224,962
Card assets 12,757,253 - - - 12,757,253
Loan receivables 15,782 - - - 15,782
Other financial assets 207,480 - - 4,718 212,198
14,552,125 1,223,478 1,484 4,718 15,781,805
(in millions of Korean won) September 30, 2018
at amortized cost
Derivative instruments
for hedging Total
Borrowings 2,865,000 - 2,865,000
Debentures 7,778,769 - 7,778,769
Other financial liabilities 2,225,625 51,146 2,276,771
12,869,394 51,146 12,920,540
(in millions of
Korean won) December 31, 2017
Financial assets at fair value
through profit or loss
Financial
assets held
for trading
financial
assets
classified as
at fair value
through
profit or loss
Loans and
receivables
Available-for-
sale financial
assets
Derivative
instruments
for hedging Total
Financial assets
Cash and deposits - - 704,937 - - 704,937
Securities 993,466 - - 1,767 - 995,233
Card assets - - 12,757,825 - - 12,757,825
Other financial assets - - 167,511 - 10,003 177,514
993,466 - 13,630,273 1,767 10,003 14,635,509

48
(in millions of Korean won) December 31, 2017
at amortized cost
Derivative instruments
for hedging Total
Borrowings 2,535,000 - 2,535,000
Debentures 7,610,237 - 7,610,237
Other financial liabilities 1,792,702 99,234 1,891,936
11,937,939 99,234 12,037,173
Net gains or losses on each category of financial instruments for the nine-month periods ended
Interest
income
Interest
expenses
Card
income
Card
expenses
Impairment
loss
Financial assets
Financial assets at amortized cost 805,326 - 1,320,700 1,045,609 82,285
profit or loss
- - - - -
other comprehensive income
- - - - -
Financial liabilities at amortized cost - 194,785 - - -
Derivative instruments for hedging - - - - -
805,326 194,785 1,320,700 1,045,609 82,285
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 - (123,746) - - 9,739
profit or loss
2,003 479 443 - -
other comprehensive income
- - 25 - -
Financial liabilities at amortized cost - - - (57,407) -
Derivative instruments for hedging 57,407 - - - -
59,410 (123,267) 468 (57,407) 9,739

49
Interest
income
Interest
expenses
Card
income
Card
expenses
Impairment
loss
Financial assets
Loans and receivables 761,540 - 1,284,974 1,000,049 61,084
Financial assets held for trading - - - - -
Available-for-sale financial assets - - - - -
Financial liabilities at amortized cost - 181,447 - - -
Derivative instruments for hedging - - - - -
761,540 181,447 1,284,974 1,000,049 61,084
Gain (loss)
on valuation
Gain (loss)
on disposal
Dividend
income
Loss on foreign
currency
translation
Gain on
foreign
currency
transactions
Financial assets
Loans and receivables - (110,744) - - 9,803
Financial assets held for trading 871 302 - - -
Available-for-sale financial assets - 22 162 - -
Financial liabilities at amortized cost - - - 46,980 22,035
Derivative instruments for hedging (46,980) (22,035) - - -
(46,109) (132,455) 162 46,980 31,838

50
30. Fair Value of Financial Instruments
Fair value hierarchy classifications of the financial instruments that are subsequently
measured at fair value as at September 30, 2018 and December 31, 2017, are as follows:
(in millions of Korean won) September 30, 2018
Book amount Fair value Level 1 Level 2 Level 3
Financial assets
Securities at fair value
through profit or loss1
1,223,478 1,223,478 - 1,220,619 2,859
Securities at fair value
through other
comprehensive income2
1,484 1,484 - - 1,484
Derivatives assets 4,718 4,718 - 4,718 -
Derivatives liabilities 51,146 51,146 - 51,146 -
1
As at September 30, 2018, among the securities at fair value through profit or loss in level 3,
equity instruments amounting to 2,859 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 September 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 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 -
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.

51
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 nine-month period ended September
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
inputs
September
30, 2018
December
31, 2017
Securities Assets 1,220,619 993,466 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 4,718 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 8,440 2,764
Currency swaps Assets - - 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. 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 42,706 96,470

52
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 September 30, 2018 and December 31, 2017.
won) September 30, 2018 December 31, 2017
Book amount Fair value Book amount Fair value
Assets
Financial assets
Cash and deposit 1,571,610 1,571,610 704,937 704,937
Card assets 12,757,253 13,048,815 12,757,825 12,991,932
Loan receivables 15,782 15,782 - -
Other financial assets 207,480 207,480 167,511 167,511
14,552,125 14,843,687 13,630,273 13,864,380
Liabilities
Borrowings 2,865,000 2,860,916 2,535,000 2,523,725
Debentures 7,778,769 7,817,538 7,610,237 7,664,970
Other financial
liabilities
2,225,625 2,225,625 1,792,702 1,792,702
12,869,394 12,904,079 11,937,939 11,981,397
The fair 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 short at the reporting date, the carrying amount is regarded as fair
value.

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