카드 감사보고서 영문

Hyundai Card Co., Ltd. and its subsidiaries
Consolidated Financial Statements
As of and For the Years Ended
December 31, 2014 and 2013
ATTACHMENT: INDEPENDENT AUDITOR’S REPORT
Hyundai Card Co., Ltd.

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INDEPENDENT AUDITORS’ REPORT
English Translation of a Report Originally Issued in Korean
To the Shareholders and the Board of Directors of
Hyundai Card Co., Ltd.:
Report on the Financial Statements
We have audited the accompanying consolidated financial statements of Hyundai Card Co., Ltd. the
(“Company”) and its subsidiaries, which comprise the consolidated statements of financial position as
of December 31, 2014 and December 31, 2013, respectively, and the consolidated statements of
comprehensive income, consolidated statements of changes in shareholders’ equity and consolidated
statements of cash flows, all expressed in Korean won, for the years ended, and a summary of
significant accounting policies and other explanatory information.
Management’s Responsibility for the Consolidated Financial statements
Management is responsible for the preparation and fair presentation of these consolidated financial
statements in accordance with Korean International Financial Reporting Standards (“K-IFRS”) and
for such internal control as management determines is necessary to enable the preparation of
consolidated financial statements that are free from material misstatement, whether due to fraud or
error.
Auditors’ Responsibility
Our responsibility is to express an audit opinion on these financial statements based on our audit. We
conducted our audit in accordance with Korean Auditing Standards. Those standards require that we
comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about
whether the financial statements are free from material misstatement, whether due to fraud or error.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures
in the financial statements. The procedures selected depend on the auditor’s judgment, including the
assessment of the risks of material misstatement of the financial statements, whether due to fraud or
error. In making those risk assessments, the auditor considers internal control relevant to the entity’s
preparation and fair presentation of the financial statements in order to design audit procedures that
are appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of
accounting policies used and the reasonableness of accounting estimates made by management, as
well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our audit opinion.
Opinion
In our opinion, the consolidated financial statements present fairly, in all material respects, the
financial position of the Hyundai Card Co., Ltd. and its subsidiaries as of December 31, 2014, and
December 31, 2013 and its financial performance and its cash flows for the years then ended in
accordance with K-IFRS.
March 3, 2015
Notice to Readers
This report is effective as of March 3, 2015, the auditor’s report date. Certain subsequent events or
circumstances may have occurred between the auditor’s report date and the time the auditor’s report is
read. Such events or circumstances could significantly affect the financial statements and may result
in modifications to the auditor’s report.

HYUNDAI CARD CO., LTD. AND ITS SUBSIDIARIES
(the “Consolidated Entity”)
CONSOLIDATED FINANCIAL STATEMENTS
AS OF AND FOR THE YEARS ENDED
DECEMBER 31, 2014 AND 2013
The accompanying consolidated financial statements, including all footnote disclosures, were
prepared by and are the responsibility of the Consolidated Entity.
Chung, Tae Young
Chief Executive Officer

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
AS OF DECEMBER 31, 2014 AND 2013
December 31, 2014 December 31, 2013
(Korean won)
ASSETS:
CASH AND DEPOSITS (Notes 5, 29, 30, and 31):
Cash and cash equivalents 167,697,056,564 965,455,273,460
Deposits 33,028,250,000 33,031,500,000
Total cash and deposits 200,725,306,564 998,486,773,460
SECURITIES (Notes 6 and 31):
Trading Securities 739,004,232,776 -
Available-for-sale (AFS) securities 1,766,969,764 1,766,969,764
Total securities 740,771,202,540 1,766,969,764
CARD ASSETS (Notes 7, 8, 28, 30, and 31):
Card receivables, net of present value of discounts and
deferred origination fees 6,901,493,380,783 6,383,211,792,320
Allowance for doubtful accounts (71,521,933,866) (70,105,553,680)
Cash advances 837,547,597,115 849,422,262,762
Card loans, net of present value of discounts 3,046,695,716,404 2,701,390,003,560
Total card assets 10,549,896,972,421 9,729,166,774,084
PROPERTY AND EQUIPMENT (Notes 9 and 28):
Land 138,257,299,573 122,011,816,788
Buildings 113,265,523,657 79,195,772,062
Accumulated depreciation (8,792,114,539) (6,313,565,576)
Vehicles 2,590,262,299 88,948,908
Accumulated depreciation (125,949,719) (38,353,100)
Fixtures and equipment 211,900,465,338 150,980,674,674
Accumulated depreciation (124,045,253,624) (97,286,451,779)
Finance lease assets - 3,334,009,504
Accumulated depreciation - (3,056,175,378)
Construction in progress 23,380,082,412 33,125,461,350
Total property and equipment 356,430,315,397 282,042,137,453
OTHER ASSETS:
Other accounts receivable (Notes 30 and 31) 116,605,521,297 94,513,815,009
Allowance for doubtful accounts (Note 8) (611,019,783) (1,030,119,271)
Accrued revenue (Notes 30 and 31) 50,756,921,220 48,131,937,107
Allowance for doubtful accounts (Note 8) (1,348,989,201) (1,323,983,992)
Advance payments 14,223,977,849 12,955,613,877
Allowance for doubtful accounts (Note 8) (650,322,306) (657,322,306)
Prepaid expenses 45,029,725,258 46,967,290,940
Intangible assets (Notes 10 and 28) 133,667,230,921 127,029,551,626
Derivative assets (Notes 17, 30 and 31) 8,739,491,485 2,750,372,571
Deferred income tax assets (Note 24) 149,460,296,801 143,222,807,823
Guarantee deposits (Notes 30 and 31) 31,048,421,043 34,819,962,715
Others 2,674,605,943 2,035,111,023
Total other assets 549,595,860,527 509,415,037,122
Total Assets 12,397,419,657,449 11,520,877,691,883
(Continued)

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (CONTINUED)
AS OF DECEMBER 31, 2014 AND 2013
(Korean won)
LIABILITIES:
BORROWINGS:
Borrowings (Notes 11, 30, and 31) 200,000,000,000 212,500,000,000
Debenture, net of discounts (Notes 12, 27, 30, and 31) 7,730,126,733,953 6,978,262,324,353
Total borrowings 7,930,126,733,953 7,190,762,324,353
OTHER LIABILITIES:
Accounts payable (Notes 28, 30, and 31) 1,001,186,223,971 1,063,762,663,494
Accrued expenses (Notes 30 and 31) 214,281,445,423 191,925,249,569
Unearned revenue (Note 15) 364,854,106,867 393,154,182,657
Withholdings (Notes 30 and 31) 146,547,177,277 134,747,372,074
Finance lease liabilities (Notes 13, 30, and 31) - 298,002,314
Derivative liabilities (Notes 17, 30, and 31) 30,922,252,463 48,665,166,455
Current tax liability 42,028,995,360 33,669,310,842
Net defined benefit liability (Note 14) 19,884,606,576 3,367,411,536
Guarantee deposits received (Notes 30 and 31) 8,652,184,880 8,076,226,724
Provisions (Notes 16 and 26) 83,555,104,835 86,321,526,532
Total other liabilities 1,911,912,097,652 1,963,987,112,197
Total liabilities 9,842,038,831,605 9,154,749,436,550
SHAREHOLDERS’ EQUITY:
Capital stock (Note 18) 802,326,430,000 802,326,430,000
Capital surplus (Note 19) 57,704,443,955 57,704,443,955
Accumulated other comprehensive loss (Notes 21 and 24) (40,118,183,826) (5,856,733,562)
Retained earnings (Notes 20 and 22) 1,735,468,135,715 1,511,954,114,940
Total shareholders’ equity 2,555,380,825,844 2,366,128,255,333
Total Liabilities and Shareholders’ Equity 12,397,419,657,449 11,520,877,691,883
See accompanying notes to consolidated financial statements.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
FOR THE YEARS ENDED DECEMBER 31, 2014 AND 2013
(Korean won)
OPERATING REVENUE:
Card income (Notes 28, 31, and 33) 2,515,798,917,810 2,453,282,496,374
Interest income (Notes 31 and 32) 24,733,441,807 20,566,269,302
Gain on valuation and disposal of securities (Note 31) 216,125,077 81,187,900
Dividends income 346,064,145 351,635,696
Reversal of provision for unused credit limits (Note 16) 1,607,911,196 -
Other operating revenue (Notes 31 and 34) 75,292,556,501 53,197,571,481
Total operating revenue 2,617,995,016,536 2,527,479,160,753
OPERATING EXPENSES:
Card expenses (Notes 28, 31, and 33) 1,041,284,584,839 1,028,249,651,605
Interest expenses (Notes 31 and 32) 305,884,066,293 312,928,664,959
General and administrative expenses (Notes 14,23, and 28) 647,012,616,878 636,477,645,013
Securitization expenses 354,729,081 325,819,518
Bad debt expense and loss on disposal of loans (Note 8) 265,852,688,656 247,746,973,428
Transfer to provision for unused credit limits (Note 16) - 1,111,380,052
Other operating expenses (Note 31 and 34) 57,583,152,511 80,714,349,715
Total operating expenses 2,317,971,838,258 2,307,554,484,290
OPERATING INCOME 300,023,178,278 219,924,676,463
NON-OPERATING INCOME :
Gain from sale of property and equipment and intangible assets 46,717,788 141,866,664
Reversal of impairment loss for intangible assets 6,262,020 11,000,000
Rental revenue (Note 28) 1,633,329,715 2,797,729,690
Miscellaneous gain 246,808,291 201,932,331
Total non-operating income 1,933,117,814 3,152,528,685
NON-OPERATING EXPENSES:
Loss from sale of property and equipment and intangible assets 62,283,827 2,545,917,969
Impairment loss of intangible assets 407,000,000 37,049,470
Donations 1,122,343,894 1,720,970,527
Miscellaneous loss 4,570,950 -
Total non-operating expenses 1,596,198,671 4,303,937,966
INCOME BEFORE INCOME TAX EXPENSE 300,360,097,421 218,773,267,182
INCOME TAX EXPENSE (Note 24) 76,846,076,646 55,563,634,256
NET INCOME 223,514,020,775 163,209,632,926
OTHER COMPREHENSIVE INCOME (LOSS),
NET OF TAX:
Items not reclassified subsequently to profit or loss: (14,440,033,678) 3,989,251,358
Remeasurements of net defined benefit liability (14,440,033,678) 3,989,251,358
Items reclassified subsequently to profit or loss: (19,821,416,586) 6,658,763,358
Cash flow hedging gains (losses) (19,821,416,586) 6,658,763,358
Total other comprehensive (loss) income (34,261,450,264) 10,648,014,716
TOTAL COMPREHENSIVE INCOME 189,252,570,511 173,857,647,642
EARNINGS PER SHARE (Note 25):
Basic earnings per share 1,393 1,017
Diluted earnings per share 1,393 1,017

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY
Capital
stock
Capital surplus Accumulated
other
comprehensive
gain(loss)
Retained
earnings Total
Paid-in
capital
Other
capital
(Korean won)
Balance at January 1, 2013 802,326,430,000 45,399,364,539 12,305,079,416 (16,504,748,278) 1,348,744,482,014 2,192,270,607,691
Total comprehensive
income:
Net income - - - - 163,209,632,926 163,209,632,926
Other comprehensive
income
Remeasurements of net
defined benefit
liability - - - 3,989,251,358 - 3,989,251,358
Cash flow hedging
income - - - 6,658,763,358 - 6,658,763,358
Balance at December 31,
2013 802,326,430,000 45,399,364,539 12,305,079,416 (5,856,733,562) 1,511,954,114,940 2,366,128,255,333
Balance at January 1, 2014 802,326,430,000 45,399,364,539 12,305,079,416 (5,856,733,562) 1,511,954,114,940 2,366,128,255,333
Total comprehensive
income:
Net income - - - - 223,514,020,775 223,514,020,775
Other comprehensive loss
Remeasurements of net
defined benefit
liability - - - (14,440,033,678) - (14,440,033,678)
Cash flow hedging
losses - - - (19,821,416,586) - (19,821,416,586)
2014 802,326,430,000 45,399,364,539 12,305,079,416 (40,118,183,826) 1,735,468,135,715 2,555,380,825,844

CONSOLIDATED STATEMENTS OF CASH FLOWS
2014 2013
(Korean won)
CASH FLOWS FROM OPERATING ACTIVITIES:
Cash generated from operating activities (Note 29) (1,027,306,120,836) 433,161,321,380
Interest received 23,794,686,357 20,852,490,398
Interest paid (284,805,700,585) (287,912,166,505)
Dividend received 346,064,145 351,635,696
Income tax paid (63,873,513,936) (63,284,530,687)
Net cash (used in) provided by operating activities (1,351,844,584,855) 103,168,750,282
CASH FLOWS FROM INVESTING ACTIVITIES:
Disposal of AFS securities 61,979,100 81,187,900
Net decrease (increase) in bank deposit 4,550,000 (2,500,000)
Disposal of property and equipment 59,785,800 183,243,052
Disposal of intangible assets - 2,280,308,566
Acquisition of property and equipment (71,059,831,292) (40,826,493,302)
Acquisition of intangible assets (70,493,126,271) (67,168,908,441)
Net cash used in investing activities (141,426,642,663) (105,453,162,225)
CASH FLOWS FROM FINANCING ACTIVITIES:
Increase in borrowings 2,500,000,000,000 4,705,000,000,000
Proceeds from issue of debentures 9,379,426,341,141 2,328,772,226,400
Repayment of borrowings (2,512,500,000,000) (4,980,000,000,000)
Repayment of debentures (8,671,413,330,519) (1,877,579,836,190)
Net cash provided by financing activities 695,513,010,622 176,192,390,210
NET (DECREASE) INCREASE IN CASH AND CASH
EQUIVALENTS (797,758,216,896) 173,907,978,267
CASH AND CASH EQUIVALENTS, BEGINNING OF
YEAR (Note 29) 965,455,273,460 791,547,295,193
CASH AND CASH EQUIVALENTS, END OF YEAR
(Note 29) 167,697,056,564 965,455,273,460

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
AS OF AND FOR THE YEARS ENDED DECEMBER 31, 2014 AND 2013
1. GENERAL:
Hyundai Card Co., Ltd. (the “Company” or the “Parent”), which is a controlling company in accordance
with Korean International Financial Reporting Standards (“K-IFRS”) 1110, Consolidated Financial
Statements, is engaged in the credit card business under the Specialized Credit Financial Business Law of
Korea. On June 15, 1995, the Parent acquired the credit card business of Korea Credit Circulation Co., Ltd.,
and on June 16, 1995, Korean government granted permission to the Parent to engage in the credit card
business.
As of December 31, 2014, the Parent has approximately 6.77 million card members; 2.19 million
registered merchants; and 154 marketing centers, branches and posts.
As of December 31, 2014, the total common stock of the Parent is ￦802,326 million. The shareholders of
the Parent and their respective ownerships as of December 31, 2014 and 2013, are as follows:
Shareholder
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
GE Capital Int’l Holdings 69,000,073 43.00 69,000,073 43.00
Hyundai Commercial Inc. 8,889,622 5.54 8,889,622 5.54
Others 4,851,512 3.02 4,851,512 3.02
Total 160,465,286 100.00 160,465,286 100.00
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:
(1) Basis of Preparation
The Hyundai Card Co., Ltd. and its subsidiaries (collectively, the “Consolidated Entity” or “Group”)
maintain their official accounting records in the Republic of Korean won and prepare consolidated
financial statements in conformity with Korean statutory requirements and K-IFRS, in Korean language
(Hangul). Accordingly, these consolidated financial statements are intended for use by those who are
informed about K-IFRS and Korean practices. Certain information included in the Korean language
financial statements, but not required for a fair presentation of the Company’s financial position, operating
results, changes in shareholders’ equity or cash flows is not presented in the accompanying consolidated
financial statements.
The Consolidated Entity’s significant accounting policies applied for the accompanying consolidated
financial statements are the same as the policies applied for the preparation of the consolidated financial
statements for the year ended December 31, 2013, except for the effects from the introduction of new and
revised accounting standards or interpretations as described below.
The consolidated financial statements have been prepared on the historical cost basis, except for certain
non-current assets and financial instruments that are measured at revalued amounts or fair values, as
explained in the accounting policies below. Historical cost is generally based on the fair value of the
consideration given in exchange for assets.

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1) Accounting standards and interpretations that were newly applied for the year ended December 31,
2014, and changes in the Company’s accounting policies are as follows:
Amendments to K-IFRS 1032, Financial Instruments: Presentation
The amendments to K-IFRS 1032 clarify the requirements relating to the offset of financial assets and
financial liabilities. Specifically, the amendments clarify the meaning of ‘currently has a legally
enforceable right of setoff’ and ‘simultaneous realization and settlement’. The amendments require
retrospective application. The adoption of the amendments has no significant impact on the Group’s
consolidated financial statements.
Amendments to K-IFRSs 1110: Consolidated financial statements; 1112: Disclosures of interest in other
entities; and 1027: Consolidated and separate financial statements
The amendments to K-IFRS 1110 define an investment entity and introduce an exception from the
requirement to consolidate subsidiaries for an investment entity. In terms of the exception, an
investment entity is required to measure its interests in subsidiaries at fair value through profit or loss
(“FVTPL”). The exception does not apply to subsidiaries of investment entities that provide services
that relate to the investment entity’s investment activities. Consequential amendments to K-IFRS 1112
and K-IFRS 1027 have been made to introduce new disclosure requirements for investment entities. In
general, the amendments require retrospective application, with specific transitional provisions. The
adoption of the amendments has no significant impact on the Group’s consolidated financial statements.
Amendments to K-IFRS 1036, Impairment of Assets
The amendments to K-IFRS 1036 remove the requirement to disclose the recoverable amount of a
cash-generating unit (CGU) to which goodwill or other intangible assets with indefinite useful lives
had been allocated when there has been no impairment or reversal of impairment of the related CGU.
Furthermore, the amendments introduce additional disclosure requirements applicable to when the
recoverable amount of an asset or a CGU is measured at fair value, less costs of disposal. The
amendments require retrospective application. The adoption of the amendments has no significant
impact on the Group’s consolidated financial statements.
Amendments to K-IFRS 1039, Financial Instruments: Recognition and Measurement
The amendments to K-IFRS 1039 provide relief from the requirement to discontinue hedge accounting
when a derivative designated as a hedging instrument is novated under certain circumstances. The
amendments also clarify that any change to the fair value of the derivative designated as a hedging
instrument arising from the novation should be included in the assessment and measurement of hedge
effectiveness. The amendments require retrospective application. The adoption of the amendments has no
significant impact on the Group’s consolidated financial statements.
Enactment of K-IFRS 2121, Levies
K-IFRS 2121 addresses the issue of when to recognize a liability to pay a levy. The interpretation defines
a levy, and specifies that the obligating event that gives rise to the liability is the activity that triggers the
payment of the levy, as identified by legislation. The interpretation provides guidance on how different
levy arrangements should be accounted for; in particular, it clarifies that neither economic compulsion
nor the going-concern basis of financial statements preparation implies that an entity has a present
obligation to pay a levy that will be triggered by operating in a future period. K-IFRS 2121 requires
retrospective application. The adoption of these amendments has no significant impact on the Group’s
consolidated financial statements.

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2) The Group has not applied the following new and revised K-IFRS that have been issued but are not yet
effective:
K-IFRS 1019, Defined Benefit Plans: Employee Contributions
If the amount of the contributions is independent of the numbers of years of service, the Group is
permitted to recognize such contributions as a reduction in the service cost in the period in which the
related service is rendered. The amendments are effective for the annual periods beginning on or after
July 1, 2014. Retrospective application is required. The amendments are effective for the annual periods
beginning on or after July 1, 2014.
Amendments to K-IFRS 1016: property, plant, and equipment
The amendments to K-IFRS 1016 prohibit entities from using a revenue-based depreciation method for
items of property, plant and equipment. The amendments to K-IFRS 1016 are effective for annual periods
beginning on or after January 1, 2016
Amendments to K-IFRS 1038: Intangible Assets
The amendments to K-IFRS 1038 clarified that the use of revenue-based methods to calculate the
amortization of an asset is not appropriate unless the consumption of the expected future economic
benefits is embodied in the asset. The amendments to K-IFRS 1038 are effective for annual
periods beginning on or after January 1, 2016.
Amendments to K-IFRS 1111: Accounting for Acquisitions of Interests in Joint Operations
The amendments to K-IFRS 1111 provide guidance on how to account for the acquisition of an interest in
a joint operation in which the activities constitute a business as defined in K-IFRS 1103 Business
Combinations. Specifically, the amendments state that the relevant principles on accounting for business
combinations in K-IFRS 1103 and other standards should be applied. The same requirements should be
applied to the formation of a joint operation if and only if an existing business is contributed to the joint
operation by one of the parties that participate in the joint operation. A joint operator is also required to
disclose the relevant information required by K-IFRS 1103 and other standards for business combinations.
The amendments to K-IFRS 1111 apply prospectively for annual periods beginning on or after 1 January
2016.
K-IFRS annual improvements 2010-2012 cycle
The annual improvements to K-IFRSs 2010-2012 cycle includes separation of definitions of a
‘performance condition’ and a ‘service condition’ (K-IFRS 1102, Share-Based Payment), classification and
measurement of contingent consideration (K-IFRS 1103), and an amendment that a reconciliation of the
total of the reportable segments’ assets to the entity’s assets should be disclosed if such amounts are
regularly provided to the chief operating decision maker (K-IFRS 1108). The amendments are effective for
annual periods beginning on or after July 1, 2014.
K-IFRS annual improvements 2011-2013 cycle
The annual improvements to K-IFRSs 2011-2013 cycle includes the exclusion of the formation of all types
of joint arrangements as defined in K-IFRS 1111 (K-IFRS 1103), scope exception for measuring the fair
value of a group of financial assets and financial liabilities on a net basis (K-IFRS 1113), and clarification
of judgment that is needed to determine whether the acquisition of investment property is the acquisition of
an asset, a group of assets, or a business combination (K-IFRS 1040). The amendments are effective for
annual periods beginning on or after July 1, 2014.
The Consolidated Entity does not anticipate that these amendments referred above will have a significant
effect on the Consolidated Entity’s consolidated financial statements and disclosures.

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(2) Significant Accounting Policies
1) Basis of Consolidation
The consolidated financial statements incorporate the financial statements of the Company and entities
(including structured entities) controlled by the Parent (and its subsidiaries). Control is achieved where the
Company 1) has the power over the investee; 2) is exposed, or has rights, to variable returns from its
involvement with the investee; and 3) has the ability to use its power to affect its returns. The Company
reassesses whether or not it controls an investee if facts and circumstances indicate that there are changes to
one or more of the three elements of control listed above.
When the Company has less than a majority of the voting rights of an investee, it has power over the
investee when the voting rights are sufficient to give it the practical ability to direct the relevant activities
of the investee unilaterally. The Company considers all relevant facts and circumstances in assessing
whether or not the Company’s voting rights in an investee are sufficient to give it power, including:
• the size of the Company’s holding of voting rights relative to the size and dispersion of holdings of the
other vote holders;
• potential voting rights held by the Company, other vote holders or other parties;
• rights arising from other contractual arrangements; and
• any additional facts and circumstances that indicate the Company has, or does not have, the current
ability to direct the relevant activities at the time decisions need to be made, including voting patterns at
previous shareholders’ meetings.
Income and expenses of subsidiaries acquired or disposed of during the year are included in the
consolidated statement of comprehensive income from the effective date of acquisition to the effective date
of disposal, as appropriate. Carrying amounts of the non-controlling interests in subsidiaries are adjusted by
the changes in the proportion of the equity held by non-controlling interests after initial acquisition of non-
controlling interests. Total comprehensive income of subsidiaries is attributed to the owners of the
Company and to the non-controlling interests even if this results in the non-controlling interests having a
deficit balance.
When necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting
policies in line with those used by the Company.
All intragroup transactions, balances, income and expenses are eliminated in full on consolidation.
Changes in the Company’s ownership interests in subsidiaries without loss of control are accounted for as
equity transactions. The carrying amounts of the Company’s interests and the non-controlling interests are
adjusted to reflect the changes in their relative interests in the subsidiaries. Any difference between the
amount by which the non-controlling interests are adjusted and the fair value of the consideration paid or
received is recognized directly in equity and attributed to the owners of the Company.
When the Parent loses control of a subsidiary, the profit or loss on disposal is calculated as the difference
between (i) the aggregate of the fair value of the consideration received and the fair value of any retained
interest and (ii) the previous carrying amount of the assets (including goodwill) and liabilities of the
subsidiary and any non-controlling interests. When assets of the subsidiary are carried at revalued amounts
or fair values and the related cumulative gain or loss has been recognized in other comprehensive income
and accumulated in equity, the amounts previously recognized in other comprehensive income and
accumulated in equity are accounted for as if the Parent had directly disposed of the relevant assets (i.e.,
reclassified to profit or loss or transferred directly to retained earnings). The fair value of any investment
retained in the former subsidiary at the date when control is lost is recognized as the fair value on initial
recognition for subsequent accounting under K-IFRS 1039 or, when applicable, the cost on initial
recognition of an investment in an associate or a jointly controlled entity.

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2) Card assets
Card assets are amounts due from customers for services performed in the ordinary course of business.
Card assets are initially measured at a fair value, including direct transaction cost; thereafter, it is measured
at amortized cost using the effective interest rate method, except for the financial assets classified as at
FVTPL.
① Card Receivables
The Consolidated Entity records card receivables when its cardholders make purchases from domestic and
foreign merchants, and when cardholders of MasterCard International, Visa International and Diners Club
International make purchases from domestic merchants. Commission from merchants for advance
payments and commission from cardholders for installment payments and cash advances are recognized as
revenue on an accrual basis. Card receivables with non-interest-bearing installment payment are initially
recognized at fair value using a discounted cash flow. As interest rate and other factors that are considered
for calculating the discounted cash flow of interest-bearing installment payments are different than those
for non-interest-bearing installment payment, the Consolidated Entity independently determines the
discount rates for non-interest-bearing installment payments with objective and reasonable method.
② Cash Advances
Cash advance service allows cardholders to withdraw cash up to certain limits depending on card members’
credit rating in accordance with the Specialized Credit Financial Business Law. Fees related to cash
advances are charged on the payment date, with a specific percentage of service charges, and interest
income is accrued on a daily basis until repayment of cash advance.
③ Card Loans
The Consolidated Entity extends the card loans to its cardholders in accordance with the Specialized Credit
Financial Business Law. Commission incomes are accrued on a daily basis based on a constant rate per
cardholders’ credit rate until repayments of card loans.
3) Financial assets
A financial asset is recognized when the Consolidated Entity becomes a party to the contract and at initial
recognition. A financial asset, excluding a financial asset at FVTPL, is measured at its fair value, plus or
minus transaction costs that are directly attributable to the acquisition of the financial asset. Otherwise, the
transaction cost that is directly attributable to the acquisition of the financial asset at FVTPL is recognized
in profit or loss immediately when it arises.
A regular-way purchase and sale of financial assets is recognized and derecognized at trade date. It is a
purchase or sale of a financial asset under a contract whose terms require delivery of the asset within the
time frame established generally by regulation or convention in the marketplace concerned.
Financial assets are classified into the following specified categories: financial assets at FVTPL, held-to-
maturity (“HTM”), AFS and loans and receivables. The classification depends on the nature and purpose of
the financial assets and is determined at the time of initial recognition.
① Effective interest rate method
The effective interest rate method is used for calculating the amortized cost of a debt instrument and
allocating interest income over the relevant period. The effective interest rate is the discounted rate used to
estimate the net carrying amount of future cash receipts (including all fees and points paid or received that
form an integral part of the effective interest rate, transaction costs and other premiums or discounts)
throughout the expected life of the debt instrument, or, where appropriate, a shorter period,
Interest income for debt instruments, except for those financial assets classified as at FVTPL, is recognized
using an effective interest rate method.

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② Financial assets at FVTPL
Financial assets at FVTPL include financial assets held for trading or financial assets designated as at
FVTPL upon initial recognition. A financial asset that is acquired or incurred principally for the purpose of
selling or repurchasing in the near term and all derivatives, including embedded derivatives bifurcated from
host contract (except for a derivative that is a designated and effective hedging instrument), are classified
as held for trading. Financial assets at FVTPL are measured at fair value and the change in value is
recognized in income (loss) for the period.
A financial asset is classified as held for trading if:
• it has been acquired principally for the purpose of selling in the near term;
• on initial recognition, it is part of a portfolio of identified financial instruments that the Company
manages together and has a recent actual pattern of short-term profit-taking; or
• it is a derivative that is not designated and effective as a hedging instrument.
A financial asset, other than a financial asset held for trading, may be designated as at FVTPL upon initial
recognition if:
• such designation eliminates or significantly reduces a measurement or recognition inconsistency that
would otherwise arise;
• the financial asset forms part of a group of financial assets or financial liabilities, or both, which is managed,
and its performance is evaluated on a fair value basis in accordance with the Consolidated Entity’s
documented risk management or investment strategy, and information about the grouping is provided
internally on that basis; or
• it forms part of a contract containing one or more embedded derivatives, and K-IFRS 1039 permits the
entire combined contract (asset or liability) to be designated as at FVTPL.
Financial assets at FVTPL are stated at fair value, and any gains or losses arising on remeasurement are
recognized in income (loss) for the period.
③ HTM investments
Non-derivative financial assets with fixed or determinable payments and fixed maturity dates that the
Consolidated Entity has the positive intent and ability to hold to maturity are classified as HTM
investments. HTM investments are measured at amortized cost using the effective interest rate method, less
any impairment, with revenue recognized on an effective interest rate basis.
④ AFS financial assets
Non-derivative financial assets that are not classified as at HTM, held for trading, designated as at FVTPL
or loans and receivables are classified as at financial assets AFS.
Financial assets AFS are subsequently measured at fair value. Gains and losses arising from changes in fair
value are recognized and accumulated in other comprehensive income, with the exception of interest
calculated using the effective interest rate method and foreign exchange gains and losses on monetary AFS
financial assets, which are recognized in income (loss) for the period. Where the AFS financial assets are
disposed of or are determined to be impaired, the cumulative gains or losses previously accumulated in
other comprehensive income are recognized income (loss) for the period.
Dividends from AFS equity instruments are recognized in income (loss) for the period when the
Consolidated Entity’s right to receive payment of the dividends is established.
The AFS investments in equity instruments that do not have a quoted price in an active market for an
identical instrument and their fair value are not reliably measurable and derivative assets that are linked to
those investments and must be settled by delivery of such an equity instrument are measured at cost, net of
identified impairment losses.

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⑤ Loans and receivables
Trade receivables, loans and other receivables that have fixed or determinable payments and are not quoted
in an active market are classified as loans and receivables. Loans and receivables are measured at
amortized cost using the effective interest rate method, less any impairment. Interest income is recognized
by applying the effective interest rate, except for short-term receivables when the effects of discount would
be immaterial.
⑥ Impairment of financial assets
Financial assets, other than those at FVTPL, are assessed for indicators of impairment at the end of each
reporting period. Financial assets are considered to be impaired when there is objective evidence that, as a
result of one or more events that occurred after the initial recognition of the financial asset, the estimated
future cash flows of the investment have been affected.
For listed and unlisted equity investments classified as AFS, a significant or prolonged decline in the fair
value of the security below its cost is considered to be objective evidence of impairment.
For all financial assets classified as AFS, objective evidence of impairment could include:
• significant financial difficulty of the issuer or counterparty,
• default or delinquency in interest or principal payments,
• it becoming probable that the borrower will enter into bankruptcy or financial reorganization or,
• an active market for financial assets is not available due to financial difficulties.
For certain categories of financial assets, such as card receivables, assets that are assessed not to be
impaired individually are, in addition, assessed for impairment on a collective basis. Objective evidence of
impairment for a portfolio of receivables could include the Consolidated Entity’s past experience of
collecting payments and an increase in the number of delayed payments in the portfolio exceeding the
average credit period, as well as observable changes in national or local economic conditions that correlate
with default on receivables.
For financial assets carried at amortized cost, the amount of the impairment loss recognized is the
difference between the asset’s carrying amount and the present value of estimated future cash flows,
discounted at the financial asset’s original effective interest rate.
For financial assets measured at amortized cost, the amount of the impairment is recognized as the
difference between the carrying amount of the asset and current value of estimated future cash flows,
discounted similar to the current market rate. The impairment is not reversed in subsequent periods.
When an AFS financial asset is considered to be impaired, cumulative gains or losses previously
recognized in other comprehensive income are recognized in income (loss) for the period.
For financial assets measured at amortized cost, if, in a subsequent period, the amount of the impairment
loss decreases and the decrease can be related objectively to an event occurring after the impairment was
recognized, the previously recognized impairment loss is reversed through income (loss) for the period to
the extent that the carrying amount of the investment at the date the impairment is reversed does not exceed
what the amortized cost would have been had the impairment not been recognized.
In respect of AFS equity instruments, impairment losses previously recognized in income (loss) for the
period are not reversed. Any increase in fair value subsequent to an impairment loss is recognized in other
comprehensive income. In respect of AFS debt instruments, in a subsequent period, if the amount of the
impairment loss increases and the increase can be related objectively to an event occurring after the
impairment was recognized, the previously recognized impairment loss is reversed through income (loss)
for the period.

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⑦ Derecognition of financial assets
The Consolidated Entity derecognizes a financial asset only when the contractual rights to the cash flows
from the asset expire, or when it transfers the financial asset and substantially all the risks and rewards of
ownership of the asset to another entity. If the Consolidated Entity neither transfers nor retains substantially
all the risks and rewards of ownership, but continues to control the transferred asset, the Consolidated
Entity recognizes its retained interest in the asset and an associated liability for amounts it may have to pay.
If the Consolidated Entity retains substantially all the risks and rewards of ownership of a transferred
financial asset, the Consolidated Entity continues to recognize the financial asset and also recognize a
collateralized borrowing for the proceeds received.
If the Consolidated Entity derecognizes the entire financial asset, the difference between total amount
received, plus the sum of cumulative income recognized in other comprehensive income and the book
value of the asset is recognized in income (loss) for the period.
If the Consolidated Entity does not derecognize the entire financial asset (for example, the Consolidated
Entity holds either an option to repurchase a certain portion of the asset or remaining equity, which does
not allow the Consolidated Entity to hold most of the risks and benefits from the financial asset or the
Consolidated Entity controls assets), the Consolidated Entity divides the book value of financial assets into
a recognized part and a unrecognized part in accordance with relative fair value of each portion. The
difference between total received amount for derecognized portion of the asset, plus the sum of cumulative
income recognized in other comprehensive income and the book value of the asset is recognized in income
(loss) for the period. Cumulative income recognized in other comprehensive income is divided into a
recognized part and a unrecognized part in accordance with relative fair value of each portion.
4) Property, plant and equipment
Property, plant and equipment are stated at cost, less subsequent accumulated depreciation and
accumulated impairment losses. The cost of an item of property and equipment is directly attributable to its
purchase or construction, which includes any costs directly attributable to bringing the asset to the location
and condition necessary for it to be capable of operating in the manner intended by management. It also
includes the initial estimate of the costs of dismantling and removing the item and restoring the site on
which it is located.
Subsequent costs are recognized in the carrying amount of an asset or as a separate asset if it is probable
that future economic benefits associated with the assets will flow into the Consolidated Entity and the cost
of an asset can be measurable. Routine maintenance and repairs are expensed as incurred.
The Consolidated Entity does not depreciate land. Depreciation expense is computed using the straight-line
method based on the estimated useful lives of the assets as follows:
Estimated useful lives
Building 40 years
Fixtures and equipment 4 years
Vehicles 4 years
Each part of property and equipment with a cost that is significant in relation to the total cost is depreciated
separately.
The Consolidated Entity assesses the depreciation method, the estimated useful lives and residual values of
property and equipment at the end of each reporting period. If expectations differ from previous estimates,
the changes are accounted for as a change in an accounting estimate.
When future economic benefits are not expected through the use or disposition of property and equipment,
the Consolidated Entity removes the book value of the assets from the consolidated statements of financial
position. The difference between the amounts received from the disposal and the book values of assets is
recognized as income (loss) of the period when the assets are removed.

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5) Lease
A lease is classified as a finance lease whenever the terms of the lease transfer substantially all the risks
and rewards of ownership to the lessee. All other leases are classified as operating leases.
The Consolidated Entity recognizes the lesser of the current value of minimum lease payment and the fair
value of lease assets as capital lease assets and capital lease liabilities.
Lease payments are apportioned to each period between interest expense and the reduction of lease
liabilities to produce a constant periodic rate of interest on the remaining balance of lease liability.
Financial cost, except for certain qualifying assets in accordance with the Consolidated Entity’s accounting
policies, is recognized immediately as an expense in the period. Any adjustments to lease payment are
recognized as cost when it occurred.
6) Intangible assets
① Intangible assets acquired separately
Intangible assets with finite useful lives that are acquired separately are carried at cost, less accumulated
amortization and accumulated impairment losses. Amortization is recognized on a straight-line basis over
their estimated useful lives. The estimated useful lives and amortization method are reviewed at the end of
each reporting period, with the effect of any changes in estimate being accounted for on a prospective basis.
Intangible assets with indefinite useful lives that are acquired separately are carried at cost, less
accumulated impairment losses.
② Internally generated intangible assets - research and development expenditure
Expenditure on research activities is recognized as an expense in the period in which it is incurred.
Expenditure arising from development (or from the development phase of an internal project) is recognized
as an intangible asset if, only if, the development project is designed to produce new or substantially
improved products, and the Consolidated Entity can demonstrate the technical and economic feasibility and
measure reliably the resources attributable to the intangible asset during its development.
The amount initially recognized for internally generated intangible assets is the sum of the expenditure
incurred from the date when the intangible asset first meets the recognition criteria listed above. Where no
internally generated intangible asset can be recognized, development expenditure is recognized in income
(loss) for the period when it is incurred.
Subsequent to initial recognition, internally generated intangible assets are reported at cost, less
accumulated amortization and accumulated impairment losses, on the same basis as intangible assets that
are acquired separately.
③ Intangible assets acquired in a business combination
Intangible assets that are acquired in a business combination are recognized separately from goodwill and
are initially recognized at their fair value at the acquisition date (which is regarded as their deemed cost).
Subsequent to initial recognition, intangible assets acquired in a business combination are reported at cost
less accumulated amortization and accumulated impairment losses, on the same basis as intangible assets
that are acquired separately.
④ Disposal of intangible assets
If future economic benefits are not expected through the use or disposition of the intangible assets, the
Consolidated Entity removes the book value of the assets from the consolidated financial statements. The
difference between the amounts received from the disposal of intangible assets and the book values of the
assets are recognized as income (loss) of the period when the assets are removed.

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7) Impairment of tangible and intangible assets, other than goodwill
At the end of each reporting period, the Consolidated Entity reviews the carrying amounts of its tangible
and intangible assets to determine whether there is any indication that those assets have suffered an
impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to
determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable
amount of an individual asset, the Consolidated Entity estimates the recoverable amount of the CGU to
which the asset belongs. Where a reasonable and consistent basis of allocation can be identified, assets for
which recoverable amounts are not individually estimated are also allocated to individual CGUs, or
otherwise, they are allocated to the smallest group of CGUs for which a reasonable and consistent
allocation basis can be identified.
Intangible assets with indefinite useful lives and intangible assets not yet available for use are tested for
impairment at least annually and whenever there is an indication that the assets may be impaired.
Recoverable amounts are the higher of fair value, less costs to sell, and value in use. In assessing value in
use, the estimated future cash flows are discounted to their present value using a pretax discount rate that
reflects current market assessments of the time value of money and the risks specific to the asset for which
the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or a CGU) is estimated to be less than its carrying amount, the
carrying amount of the asset (or the CGU) is reduced to its recoverable amount. An impairment loss is
recognized immediately in income (loss) for the period.
If impairment recognized in prior periods is reversed, the book value of the individual assets (or CGU) is
the smaller of the carrying amount of the recoverable amount or the book value that the impairment would
not have recognized in prior periods and the reversal of impairment loss is recognized immediately in
income (loss) for the period at that time.
8) Provisions
Provisions are recognized when the Consolidated Entity has a present obligation (legal or constructive) as a
result of a past event, it is probable that the Consolidated Entity will be required to settle the obligation and
the amount of the obligation is reliably estimated.
The amounts recognized as a provision are the best estimate of the consideration required to settle the
present obligation at the end of the reporting period, taking into account the risks and uncertainties
surrounding the obligation. When a provision is measured using the cash flows estimated to settle the
present obligation, its carrying amount is the present value of those cash flows (where the effect of the time
value of money is material).
When some or all of the economic benefits required to settle a provision are expected to be recovered from
a third party, a receivable is recognized as an asset if it is virtually certain that reimbursement will be
received and the amount of the receivable can be measured reliably.
At the end of each reporting period, the remaining provision balance is reviewed and assessed to determine
if the current best estimate is being recognized. If the existence of an obligation to transfer economic
benefit is no longer probable, the related provision is reversed during the period.
9) Financial liabilities and equity instruments
① Classification as debt or equity
Debt and equity instruments are classified as either financial liabilities or equity in accordance with the
substance of the contractual arrangement and the definition of financial liabilities and equity instruments.

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② Equity instruments
An equity instrument is any contract that evidences a residual interest in the assets of an entity after
deducting all of its liabilities. Equity instruments issued by the Company are recognized as the proceeds are
received, net of direct issue costs.
Treasury shares transactions are deducted directly from equity. Profit or loss arising from purchases and
sales, issuances, and incinerations of treasury shares are not recognized in income (loss) for the period.
③ Compound instruments
The component parts of compound instruments issued by the Consolidated Entity are allocated into
financial liabilities and equity in accordance with the definition of the financial asset and liability.
Convertible option that can be settled by exchanging financial asset, such as fixed amount of cash for the
fixed number of treasury shares, is equity instruments.
At the date of issue, the fair value of the liability component is estimated using the prevailing market
interest rate for a similar non-convertible instrument. This amount is recorded as a liability on an amortized
cost basis using the effective interest rate method, until extinguished upon conversion or at the instrument’s
maturity date.
The equity component is determined by deducting the amounts of the liability component from the fair
value of the compound instrument as a whole. This is recognized and included in equity, net of income tax
effects, and is not subsequently remeasured.
④ Financial liabilities
A financial liability is recognized when the Consolidated Entity becomes a party to the contract and at
initial recognition. A financial liability, other than financial liability at FVTPL, is measured at its fair value,
plus or minus transaction costs that are directly attributable to the issue of the financial liability. Otherwise,
the transaction cost that is directly attributable to the issue of the financial liability at FVTPL is recognized
in income (loss) for the period immediately when it arises.
Financial liabilities are classified as either financial liabilities at FVTPL or other financial liabilities.
⑤ Other financial liabilities
Other financial liabilities are subsequently measured at amortized cost using the effective interest rate
method, with interest expense recognized on an effective interest rate method.
The effective interest rate method is used for calculating the amortized cost of a financial liability and
allocating interest expense over the relevant period. The effective interest rate is the discounted rate used to
estimate the net carrying value of future cash payment, including commission and points to be paid or
received, transaction cost and other premium or discounts throughout the expected life of financial liability,
or, where appropriate, a shorter period.
⑥ Derecognition of financial liabilities
The Consolidated Entity derecognizes financial liabilities when, and only when, the Consolidated Entity’s
obligations are discharged, canceled or expired. On derecognition of a financial liability in its entirety, the
difference between the carrying amount and the consideration received is recognized in income (loss) for
the period.

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10) Derivative instruments
The Consolidated Entity enters into a variety of derivative contracts, including interest rate swaps and
currency swaps, to manage its exposure to interest rate and foreign exchange rate risk.
Derivatives are initially recognized at fair value at the date the derivative contract is entered into and are
subsequently remeasured to their fair value at the end of each reporting period. Gain or loss from the
change in fair value is recognized in income (loss) for the period immediately, unless the derivative is
designated and effective as a hedging instrument; in such case, the timing of the recognition in profit or
loss depends on the nature of the hedge relationship.
A derivative with a positive fair value is recognized as a financial asset, and a derivative with a negative
fair value is recognized as a financial liability.
① Embedded derivatives
When economic characteristics and risks of an embedded derivative are not closely related to the host
contract and a separate instrument with the same terms as the embedded derivative would meet the
definition of a derivative and the changes in fair value of hybrid contract are not recognized in income (loss)
for the period, the Consolidated Entity accounts for the embedded derivative separately from the host
contract.
② Hedge accounting
The Consolidated Entity designates certain derivative instruments as cash flow hedges.
At the inception of the hedge relationship, the Consolidated Entity documents the relationship between the
hedging instrument and the hedged item, along with its risk management objectives and its strategy for
undertaking various hedge transactions. Furthermore, at the inception of the hedge and on an ongoing basis,
the Consolidated Entity documents whether the hedging instrument is highly effective in offsetting changes
in cash flows of the hedged item.
③ Cash flow hedges
The effective portion of changes in the fair value of derivatives that are designated and qualify as cash flow
hedges is recognized in other comprehensive income. The gain or loss relating to the ineffective portion is
recognized immediately in income (loss) for the period, and is included in the other operating revenue or
expenses line item.
Amounts previously recognized in other comprehensive income and accumulated in equity are reclassified
to income (loss) for the period when the hedged item is recognized in income (loss) for the period.
Hedge accounting is discontinued when the Consolidated Entity revokes the hedging relationship; when the
hedging instrument expires or is sold, terminated or exercised; or it no longer qualifies for hedge
accounting. Any gain or loss accumulated in equity at that time remains in equity and is recognized when
the forecasted transaction is ultimately recognized in profit or loss. When a forecasted transaction is no
longer expected to occur, the gain or loss accumulated in equity is recognized immediately in profit or loss.
11) Share capital
Incremental costs directly attributable to the issue of new shares or options are shown in equity as a
deduction, net of tax, from the proceeds. Stock issuance costs are incremental costs directly attributable to
the issue of equity instruments and are deducted on the initial recognition of the equity instruments.
Where the Parent or its subsidiary purchases any shares of the Parent or its subsidiary, the consideration
paid is deducted from shareholders’ equity as treasury shares, until they are canceled. Where such shares
are subsequently sold or reissued, any consideration received is included in shareholders’ equity.

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12) Commission revenue
① Fees that are a part of the financial instruments’ effective interest rate
Fees that are a part of the effective interest rate of a financial instrument are treated as an adjustment to the
effective interest rate. Such fees include compensation for activities, such as evaluating the borrower’s
financial condition; evaluating and recording guarantees, collateral and other security arrangements;
negotiating the terms of the instrument; preparing and processing documents; and closing the transaction,
as well as origination fees received on issuing financial liabilities measured at amortized cost. These fees
are deferred and recognized as an adjustment to the effective interest rate. However, in case the financial
instrument is classified as a financial asset at FVTPL, the relevant fee is recognized as revenue when the
instrument is initially recognized.
② Commission from significant act performed
The recognition of revenue is postponed until the significant act is executed.
③ Unearned revenue from point programs (customer loyalty program)
The Consolidated Entity operates customer loyalty program to provide customers with incentives to buy
their goods or services. If a customer buys goods or services, the Consolidated Entity grants the customer
awards credits (often described as ‘points’). The customer can redeem the award credits for awards, such
as free or discounted goods or services. The awards credits are accounted separately as identifiable
component of the sales transaction(s) in which they are granted (the ‘initial sales’). The fair value of the
consideration received or receivable in respect of the initial sale shall be allocated between the award
credits and the other components of the sale.
If the Consolidated Entity supplies the awards itself, it shall recognize the consideration allocated to award
credits as revenue when award credits are redeemed and it fulfills its obligation to supply awards. The
amount of revenue recognized shall be based on the number of award credits that have been redeemed in
exchange for awards related to the total number expected to be redeemed.
If the third party supplies the awards, the Consolidated Entity shall assess whether it is collecting the
consideration allocated to the award credits on its own account (as the principal in the transaction ) or on
behalf of the third party (as agent for the third party). The amount of revenue recognized shall be net
amount retained on its own account.
13) Interest income and expense
Using the effective interest rate method, the Consolidated Entity recognizes interest income and expense in
the consolidated statements of comprehensive income. Effective interest rate method calculates the
amortized cost of financial assets or liabilities and allocates interest income or expense over the relevant
period. The effective interest rate discounts the expected future cash in and out through the expected life of
financial instruments, or, if appropriate, through shorter period, to net carrying amount of financial assets
or liabilities. When calculating the effective interest rate, the Consolidated Entity estimates future cash
flows considering all contractual financial instruments, except the loss on future credit risk. Also, effective
interest rate calculation includes redemption costs, points (part of the effective interest rate) that are paid or
earned between contracting parties, transaction costs and other premiums or discounts. It is assumed that
the cash flows and the expected existing period of aggregation of homogeneous financial instruments are
reliably estimable. However, in the exception that cash flow of financial instruments (or aggregation of
homogeneous financial instruments) or the estimated maturity is not reliably estimable, the effective
interest rate is calculated using the contractual terms of cash flows for the entire contract period.
If financial instruments or aggregation of homogeneous financial instruments are impaired, the subsequent
interest income is recognized based on the discount rate used in discounting future cash flows for the
purpose of the measurement of impairments.

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14) Dividend revenue
Dividend income from investments is recognized when the shareholder’s right to receive the payment of
dividends has been established.
15) Foreign currency translation
The individual financial statements of the consolidated entities are presented in the currency of the primary
economic environment in which the Company operates (its functional currency). For the purpose of the
consolidated financial statements, the results of operations and financial position of each entity are
expressed in Korean won, which is the functional currency of the Parent and the presentation currency for
the consolidated financial statements.
In preparing the financial statements of the individual entities, transactions in currencies other than the
entity’s functional currency (foreign currencies) are recognized at the rates of exchange prevailing at the
date of the transactions. At the end of each reporting period, monetary items denominated in foreign
currencies are retranslated at the rates prevailing at that date. Non-monetary items carried at fair value that
are denominated in foreign currencies are retranslated at the rates prevailing at the date when the fair value
was determined. Non-monetary items that are measured in terms of historical cost in a foreign currency are
not retranslated.
Exchange differences are recognized in income (loss) for the period in which they arise, except for
exchange differences on transactions entered into in order to hedge certain foreign currency risks. See Note
2 and 10 for hedging accounting policies.
16) Retirement benefit costs
Contributions to defined contribution plans are recognized as an expense when employees have rendered
service entitling them to the contributions.
For defined benefit plans, the cost of providing benefits is determined using the projected unit credit
method, with actuarial valuations being carried out at the end of each reporting period. The present value of
defined benefit obligations is determined by the discount rate that reflects the current rate of return on a
high-quality corporate bond (or, in countries where there is no deep market in such bonds, government
bonds) of equivalent term and currency to the plan liabilities.
Actuarial gains and losses are changes in the present value of the defined benefit obligation resulting from
experience adjustments (the effects of differences between the previous actuarial assumptions and what has
actually occurred) and the effects of changes in actuarial assumptions. Past service cost is recognized
immediately to the extent that the benefits are already vested or, otherwise, is amortized on a straight-line
basis over the average period until the benefits become vested.
The retirement benefit obligation recognized in the consolidated statements of financial position represents
the present value of the defined benefit obligation, as adjusted for unrecognized actuarial gains and losses
and unrecognized past service cost and as reduced by the fair value of plan assets. Any asset resulting from
this calculation is limited to unrecognized actuarial losses and past service cost, plus the present value of
available economic benefits of refunds and reductions in future contributions to the plan.
A liability for a termination benefit is recognized at the earlier of when the entity can no longer withdraw
the offer of the termination benefit or when the entity recognizes any related restructuring costs.
17) Taxation
Income tax consists of current tax and deferred tax.
① Current tax
The tax currently payable is based on taxable income for the period. Taxable income differs from income
(loss) before tax expenses as reported in the consolidated statement of comprehensive income because of
items of income or expense that are taxable or deductible in other periods. The Consolidated Entity’s
liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the
end of the reporting period.

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② Deferred tax
Deferred tax is recognized on temporary differences between the carrying amounts of assets and liabilities
in the consolidated financial statements and the corresponding tax bases used in the computation of taxable
income. Deferred tax liabilities are generally recognized for all taxable temporary differences. Deferred
income tax assets are generally recognized for all deductible temporary differences to the extent it is
probable that taxable income will be available against which those deductible temporary differences can be
utilized. Such deferred tax assets and liabilities are not recognized if the taxable or deductible temporary
difference arises from goodwill or from the initial recognition (other than in a business combination) of
other assets and liabilities in a transaction that affects neither the taxable income (taxable deficit) nor the
accounting income.
Deferred tax liabilities are recognized for taxable temporary differences associated with investments in
subsidiaries and associates and interests in joint ventures, except where the Consolidated Entity is able to
control the reversal of the temporary difference and it is probable that the temporary difference will not
reverse in the foreseeable future. Deferred tax assets arising from deductible temporary differences
associated with such investments and interests are only recognized to the extent it is probable that there will
be sufficient taxable income against which the benefits of the temporary differences can be utilized and
they are expected to reverse in the foreseeable future.
The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to
the extent it is no longer probable that sufficient taxable income will be available to allow all or part of the
asset to be recovered.
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the period in
which the liability is settled or the asset is realized, based on tax rates (and tax laws) that have been enacted
or substantively enacted by the end of the reporting period. The measurement of deferred tax liabilities and
assets reflects the tax consequences that would follow from the manner in which the Consolidated Entity
expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and
liabilities.
The Consolidated Entity shall offset deferred tax assets and deferred tax liabilities if, and only if, the
Consolidated Entity has a legally enforceable right to set off current tax assets against current tax liabilities
and the deferred tax assets and the deferred tax liabilities relate to income taxes levied by the same taxation
authority on either the same taxable entity or different taxable entities that intend either to settle current tax
liabilities and assets on a net basis or realize the assets and settle the liabilities simultaneously in each
future period in which significant amounts of deferred tax liabilities or assets are expected to be settled or
recovered.
For the purpose of measuring deferred tax liabilities and deferred tax assets for investment properties that
are measured using the fair value model, the carrying amounts of such properties are presumed to be
recovered entirely through sale, unless the presumption is rebutted. The presumption is rebutted when the
investment property is depreciable and is held within a business model whose objective is to consume
substantially all of the economic benefits embodied in the investment properties over time, rather than
through sale.
③ Current tax and deferred tax for the year
Current tax and deferred tax are recognized in profit or loss, except when they relate to items that are
recognized in other comprehensive income or directly in equity, in which case the current tax and deferred
tax are also recognized in other comprehensive income or directly in equity. Where current tax or deferred
tax arises from the initial accounting for a business combination, the tax effect is included in the accounting
for the business combination.
18) Earnings per share
Basic earnings per share is calculated by dividing net profit from the period available to common
shareholders by the weighted-average number of common shares outstanding during the year. Diluted
earnings per share are calculated using the weighted-average number of common shares outstanding,
adjusted to include the potentially dilutive effect of common equivalent shares outstanding.

- 16 -
19) Fair value
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly
transaction between market participants at the measurement date, regardless of whether that price is
directly observable or estimated using another valuation technique. In estimating the fair value of an asset
or a liability, the Consolidated Entity takes into account the characteristics of the asset or liability if market
participants would take those characteristics into account when pricing the asset or liability at the
measurement date. Fair value for measurement and/or disclosure purposes in these consolidated financial
statements is determined on such a basis, except for share-based payment transactions that are within the
scope of K-IFRS 1102; leasing transactions that are within the scope of K-IFRS 1017, Leases; and
measurements that have some similarities to fair value, but are not fair value, such as net realizable value in
K-IFRS 1002, Inventories, or value in use in K-IFRS 1036.
In addition, for financial reporting purposes, fair value measurements are categorized into Levels 1, 2 or 3,
based on the degree to which the inputs to the fair value measurements are observable and the significance
of the inputs to the fair value measurement in its entirety, which are described as follows:
• Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the
entity can access at the measurement date;
• Level 2 inputs are inputs, other than quoted prices included within Level 1, that are observable for the
asset or liability, either directly or indirectly; and
• Level 3 inputs are unobservable inputs for the asset or liability.
3. CRITICAL ACCOUNTING JUDGMENTS AND KEY SOURCES OF ESTIMATION
UNCERTAINTY:
In the application of the Consolidated Entity’s accounting policies, which are described in Note 2,
management is required to make judgments, estimates and assumptions about the carrying amounts of
assets and liabilities that are not readily apparent from other sources. The estimates and associated
assumptions are based on historical experience and other factors that are considered to be relevant. Actual
results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting
estimates are recognized in the period in which the estimate is revised if the revision affects only that
period or in the period of the revision and future periods if the revision affects both current and future
periods.
(1) Critical judgments in applying accounting policies
The following are the critical judgments, apart from those involving estimations (see Note 3(2)) that the
directors have made in the process of applying the Consolidated Entity’s accounting policies and that have
the most significant effect on the amounts recognized in the consolidated financial statements.
1) Judgments in applying consolidation
The Parent has a 0.9% ownership interest in Privia Third Securitization Specialty Co., Ltd. and a 0.5%
ownership interest in Privia Fourth Securitization Specialty Co., Ltd. and Privia Fifth Securitization
Specialty Co., Ltd.. The directors of the Parent made an assessment as at the date of initial application of
K-IFRS 1110 (January 1, 2013) as to whether the Parent has control over Privia Third Securitization
Specialty Co., Ltd.,, Privia Fourth Securitization Specialty Co., Ltd., and Privia Fifth Securitization
Specialty Co., Ltd., in accordance with the new definition of control and the related guidance set out in K-
IFRS 1110. It is concluded that the Parent has control over subsidiaries as it involves in the objectives and
design of the subsidiaries and is exposed to their parts of risks and rewards. Also, all the decision-making
processes of the subsidiaries are operated on autopilot by provisions and articles of association and the
Parent is considered to have an ability to use power because the Parent has control over the changes of
provisions and articles of association. Therefore, the directors concluded that it has control over the
subsidiaries. Details of this control assessment are set out in Note 4.

- 17 -
(2) Key sources of estimation uncertainty
Critical accounting judgment and key sources of estimation uncertainty at the end of reporting period
having significant risk factors that can incur the material changes in the book value of assets and liabilities
of the Consolidated Entity for the following fiscal year are as follows:
1) Allowance for Doubtful Accounts
The Consolidated Entity determines and recognizes allowances for losses through impairment testing on
credit card assets and other assets, such as other accounts receivable, advance payments and accrued
income. The Consolidated Entity also recognizes provisions for losses on unused commitments. The
accuracy of provisions for credit losses is determined by the risk assessment methodology and assumptions
used for estimating expected cash flows of the borrower for allowances on individual loans and collectively
assessing allowances for groups of loans and provisions for unused commitments.
2) Unearned revenue from point programs
The Consolidated Entity provides its customers with incentives to buy goods or services by providing
awards (customer loyalty programs) and allocates the fair value of the consideration received or receivable
between the award credits granted (points) and the other components of the revenue transaction. The
Consolidated Entity supplies the awards, such as discounted payments or free gifts. The consideration
allocated to the award credits is measured by reference to their fair value, i.e., the amount for which the
award credits could be sold separately. The fair value of the consideration allocated to the award credits is
estimated by taking into account expected redemption rates, etc., and recognized as deferred revenue, until
the Consolidated Entity fulfills its obligations to deliver awards to customers. The amount of revenue
recognized is to be based on the number of award credits that have been redeemed in exchange for awards,
relative to the total number expected to be redeemed.
3) Postemployment Benefits: Defined Benefit Plans
The Consolidated Entity operates a defined benefit pension plan (“Plan”). The amount recognized as a
defined benefit liability is the present value of the defined benefit obligation, less the fair value of plan
assets at the end of the reporting period. The present value of defined benefit obligation is calculated
annually by using actuarial assumptions, such as future increases in salaries, expected returns on plan assets,
discount rate and others. The Plan has the uncertainty due to the nature of long-term plan. The defined
benefit obligation as of December 31, 2014 and 2013, is ￦19,885 million and ￦3,367 million,
respectively (see Note 14).
4) Fair Value Measurement of Financial Instruments
As disclosed in Note 31, the fair value of financial instruments classified as certain level is measured using
valuation techniques where significant inputs are not based on observable market data. The Consolidated
Entity believes that valuation methods and assumptions used for measuring the fair value of financial
instruments are reasonable and that the fair value recognized in the consolidated statements of financial
position is appropriate.

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4. SUBSIDIARIES:
(1) Details of the Company’s subsidiaries as of December 31, 2014 and 2013, are as follows:
Place of
incorporation
and operation
Voting share (%)
Companies Major operation
December
31, 2014
December
31, 2013
End of
reporting
year
PRIVIA 2nd
SPC Asset securitization Korea - 0.9 December
PRIVIA 3rd
SPC
PRIVIA 4TH
SPC
PRIVIA 5TH
SPC
Money Market Trust (14)
Asset securitization
Trust Financial Management
Korea
Korea
Korea
Korea
0.9
0.5
0.5
100
0.9
-
-
-
January
December
December
-
All the subsidiaries above are classified as structured entities as they are designed such that voting or
similar rights are not dominant factor in deciding who controls the entity.
The subsidiaries were established for the Consolidated Entity’s business activity. The Parent has the power
over the subsidiaries due to the fact that the Parent involves in the objectives and design of the subsidiaries
and is exposed to risks and rewards. Also, all the decision-making processes of the subsidiaries are
operated on autopilot by provisions and articles of association. The Parent is considered to have an ability
to use power because the Parent has control over the changes of provisions and articles of association.
Therefore, the Parent includes the special-purpose entities under consolidation.
Meanwhile, in case that default occurs by the subsidiaries related to derivative contracts hedging risks
arising from debentures issued for asset securitization, counterparties of the derivative contracts can claim
for reimbursement from the Parent.
(2) Summary of financial information of subsidiaries as of and for the years ended December 31, 2014 and
2013, are as follows (Unit: Korean won in millions):
December 31, 2014
Total
assets
Total
liabilities Sales Net income
Comprehensive
income
PRIVIA 3RD
SPC 450,569 450,538 33,203 - -
PRIVIA 4TH
SPC 312,464 319,087 21,975 - -
PRIVIA 5TH
SPC 300,265 300,265 1,407 - -
Money Market Trust (14) 245,008 245,000 8 8 8
December 31, 2013
Total
assets
Total
liabilities Sales Net income
Comprehensive
income
PRIVIA 2nd
SPC 298,795 299,033 22,628 - -
PRIVIA 3rd
SPC 450,569 450,009 21,963 - -
(3) Summary of newly included subsidiaries as of December 31, 2014 and 2013, is as follows:
Companies Reason
PRIVIA 4th
SPC Newly Established
PRIVIA 5th
SPC Newly Established
Money Market Trust (14) Newly Established
(4) Summary of financial information of excluded subsidiaries as of December 31, 2014 and 2013, is as
follows:
Companies Reason
PRIVIA 2nd
SPC Liquidated

- 19 -
(5) Summary of investment in the unconsolidated structured entity is as follows:
1) Nature and extent of unconsolidated structured entity’s equity
The Consolidated Entity involves in the special-purpose company (SPC) through investments and the
nature of the involvement is as follows:
Unconsolidated entities that are classified as investment fund include investment trust and private equity
fund. Investment trusts select and delegate management to investment managers and allocate investment
operating profits by trust agreement. Private equity fund involves in business management, improvements
in business structures, procurement of investment funds through private equity and allocation of profits to
investors. As an investor of the investment fund, the Consolidated Entity recognizes dividend revenue and
is exposed to the risk of principal loss.
2) As of December 31, 2014, total assets, the book value, maximum loss exposure, and net loss
recognized in the financial statements are as follows. Maximum loss exposure includes future amounts
such as investment assets, purchase contracts, and credit offerings.
Description
Amounts
(Korean won in millions)
Unconsolidated entity total assets 7,170,655
Assets recognized 140,063
Securities 140,063
Liabilities recognized -
Loss incurred -
Maximum loss exposures 140,063
Securities 140,063
5. CASH AND DEPOSITS:
(1) Details of cash and cash equivalents as of December 31, 2014 and 2013, are as follows (Unit: Korean won
in millions):
Annual
interest rate (%) Amount
Annual
interest rate (%) Amount
Current deposits - ￦ 101 - ￦ 151
Ordinary deposits - 87,446 - 176,104
Other cash equivalents - - 2.48~2.60 100,000
Time deposits 2.08 14,000 2.59 14,200
Other deposits - 66,150 2.50~2.75 675,000
￦ 167,697 ￦ 965,455
(2) Restricted deposits and others as of December 31, 2014 and 2013, are as follows (Unit: Korean won in
millions):
Type Entity
December 31,
2014
December 31,
2013 Restriction
Deposits KB and others ￦ 19 ￦ 19 Guarantee deposits for overdraft
Shinhan Bank and others 33,000 33,000 Secured deposits
Mirae Asset Securities 10 13 Social enterprise fund
Other financial
assets
Korea Asset Management
Corporation
6,885 9,246
Escrow account for the sales of
Daewoo Engineering &
Construction Co., LTD.’s shares
￦ 39,914 ￦ 42,278

- 20 -
6. SECURITIES:
Securitiess as of December 31, 2014 and 2013, are as follows (Unit: Korean won in millions):
Trading:
Treasury bonds ￦ 39,137 ￦ -
Corporate bonds 515,300 -
Securities 140,063 -
Other 44,504 -
Subtotal 739,004 -
Financial assets AFS:
Unlisted shares investment 1,767 1,767
Total ￦ 740,771 ￦ 1,767
7. CARD ASSETS:
Card assets by customer as of December 31, 2014 and 2013, are as follows (Unit: Korean won in millions):
December 31, 2014
Principal
Deferred
origination fees
Present value
of discount
Allowance for
doubtful
accounts Book Value
CARD ASSETS :
Card receivables Households ￦ 6,301,454 ￦ (6,761) ￦ (6,644) ￦ (63,711) ￦ 6,224,338
Corporates 613,445 - - (7,811) 605,634
Cash advances Households 837,548 - - (30,078) 807,470
Card loans Households 3,047,465 - (770) (134,240) 2,912,455
Total ￦ 10,799,912 ￦ (6,761) ￦ (7,414) ￦ (235,840) ￦ 10,549,897
December 31, 2013
Principal
Deferred
origination fees
Present value
of discount
Allowance for
doubtful
accounts Book Value
CARD ASSETS :
Card receivables (*) Households ￦ 5,870,781 ￦ (7,183) ￦ (5,287) ￦ (61,803) ￦ 5,796,508
Corporates 524,912 (11) - (8,303) 516,598
Cash advances Households 849,422 - - (31,313) 818,109
Card loans (*) Households 2,702,253 - (863) (103,438) 2,597,952
Total ￦ 9,947,368 ￦ (7,194) ￦ (6,150) ￦ (204,857) ￦ 9,729,167

- 21 -
8. ALLOWANCE FOR DOUBTFUL ACCOUNTS:
Changes in the allowance for doubtful accounts for the years ended December 31, 2014 and 2013, are as
follows (Unit: Korean won in millions):
December 31, 2014
Card
receivables
Cash
advances
Card
loans Loans
Other
assets Total
Balance at January 1,
2014 ￦ 70,105 ￦ 31,313 ￦ 103,438 ￦ - ￦ 3,011 ￦ 207,867
Bad debt expenses (2,081) (332) (443) - - (2,856)
Bad debt recovered 678 907 296 - - 1,881
Disposition and
repurchase (31,597) (18,740) (35,551) - - (85,888)
Provision for allowance
for doubtful accounts 34,417 16,930 66,500 - (401) 117,446
2014 ￦ 71,522 ￦ 30,078 ￦ 134,240 ￦ - ￦ 2,610 ￦ 238,450
December 31, 2013
Card
receivables
Cash
advances
Card
loans Loans
Other
assets Total
Balance at January 1,
2013 ￦ 65,652 ￦ 33,785 ￦ 81,374 ￦ - ￦ 2,267 ￦ 183,078
Bad debt expenses (1,765) (520) (604) - - (2,889)
Bad debt recovered 712 970 301 - - 1,983
Disposition and
repurchase (35,114) (22,200) (34,275) - - (91,589)
Provision for allowance
for doubtful accounts 40,620 19,278 56,642 - 744 117,284
2013 ￦ 70,105 ￦ 31,313 ￦ 103,438 ￦ - ￦ 3,011 ￦ 207,867
9. PROPERTY AND EQUIPMENT:
(1) Property and equipment as of December 31, 2014 and 2013, are as follows (Unit: Korean won in millions):
Acquisition
cost
Accumulated
depreciation Book value
Acquisition
cost
Accumulated
depreciation Book value
Land ￦ 138,257 ￦ - ￦ 138,257 ￦ 122,012 ￦ - ￦ 122,012
Buildings 113,266 (8,792) 104,474 79,196 (6,314) 72,882
Vehicles 2,590 (126) 2,464 89 (38) 51
Fixtures and equipment 211,900 (124,045) 87,855 150,981 (97,287) 53,694
Finance lease assets - - - 3,334 (3,056) 278
Construction in progress 23,380 - 23,380 33,125 - 33,125
Total ￦ 489,393 ￦ (132,963) ￦ 356,430 ￦ 388,737 ￦ (106,695) ￦ 282,042

- 22 -
(2) The changes in book value of property and equipment for the years ended December 31, 2014 and 2013,
are as follows (Unit: Korean won in millions):
December 31, 2014
Beginning
balance Acquisition Reclassification Disposal Depreciation
Ending
balance
Land ￦ 122,012 ￦ 15,761 ￦ 484 ￦ - ￦ - ￦ 138,257
Buildings 72,882 4,754 29,316 - (2,480) 104,474
Vehicles 51 2,501 - - (88) 2,464
Fixtures and equipment 53,694 29,234 39,104 (75) (34,102) 87,855
Finance lease assets 278 - - - (278) -
Construction in
progress 33,125 22,255 (32,000) 23,380
Total ￦ 282,042 ￦ 74,505 ￦ 36,904 ￦ (75) ￦ (36,946) ￦ 356,430
December 31, 2013
Beginning
balance Acquisition Reclassification Disposal Depreciation
Ending
balance
Land ￦ 122,012 ￦ - ￦ - ￦ - ￦ - ￦ 122,012
Buildings 60,331 7,315 7,062 - (1,826) 72,882
Vehicles 163 13 - (62) (63) 51
Fixtures and equipment 56,690 22,805 1,594 (2,260) (25,135) 53,694
Finance lease assets 1,389 - - - (1,111) 278
Construction in
progress 23,798 18,203 (8,876) - - 33,125
Total ￦ 264,383 ￦ 48,336 ￦ (220) ￦ (2,322) ￦ (28,135) ￦ 282,042
10. INTANGIBLE ASSETS:
(1) Intangible assets as of December 31, 2014 and 2013, are as follows (Unit: Korean won in millions):
December 31, 2014
Acquisition
cost
Accumulated
amortization
Accumulated
impairment
Book
value
Development cost ￦ 153,252 ￦ (54,542) ￦ - ￦ 98,710
Industrial property rights 195 (195) - -
Others 18,572 (15,373) - 3,199
Construction in progress 11,144 - - 11,144
Membership 21,554 - (940) 20,614
Total ￦ 204,717 ￦ (70,110) ￦ (940) ￦ 133,667
December 31, 2013
Acquisition
cost
Accumulated
amortization
Accumulated
impairment
Book
value
Development cost ￦ 71,713 ￦ (36,279) ￦ - ￦ 35,434
Industrial property rights 195 (159) - 36
Others 16,830 (12,325) - 4,505
Construction in progress 65,899 - - 65,899
Membership 21,695 - (539) 21,156
Total ￦ 176,332 ￦ (48,763) ￦ (539) ￦ 127,030

- 23 -
(2) The changes in intangible assets for the years ended December 31, 2014 and 2013, are as follows (Unit:
Korean won in millions):
December 31, 2014
Beginning
balance Acquisition Reclassification Disposal Amortization Impairment
Ending
balance
Development cost ￦ 35,434 ￦ 53,651 ￦ 27,889 ￦ - ￦ (18,264) ￦ - ￦ 98,710
Industrial property
rights 36 - - - (36) - -
Others 4,505 1,742 - - (3,048) - 3,199
Construction in
progress 65,899 10,006 (64,761) - - - 11,144
Membership 21,156 - (141) - - (401) 20,614
Total ￦ 127,030 ￦ 65,399 ￦ (37,013) ￦ - ￦ (21,348) ￦ (401) ￦ 133,667
December 31, 2013
Beginning
balance Acquisition Reclassification Disposal Amortization Impairment
Ending
balance
Development cost ￦ 34,747 ￦ 13,588 ￦ 4,936 ￦ (5,285) ￦ (12,552) ￦ - ￦ 35,434
Industrial property
rights 76 - - - (40) - 36
Others 7,829 31 - (13) (3,342) - 4,505
Construction in
progress 11,041 59,918 (5,060) - - - 65,899
Membership 20,971 244 - (33) - (26) 21,156
Total ￦ 74,664 ￦ 73,781 ￦ (124) ￦ (5,331) ￦ (15,934) ￦ (26) ￦ 127,030
11. BORROWINGS:
Borrowings as of December 31, 2014 and 2013, are as follows (Unit: Korean won in millions):
Borrowed from
Annual interest
rates (%) Maturity December 31, 2014 December 31, 2013
Commercial papers
Borrowings Hana bank
and six others
3.23~3.96 2015.02.23~
2016.04.01 ￦ 200,000 ￦ 215,500
12. DEBENTURE:
(1) Debenture issued by the Consolidated Entity and outstanding as of December 31, 2014 and 2013, are as
Annual interest rates (%) Maturity December 31, 2014 December 31 2013
Current portion of long-
term debentures
3.02~5.68,
1M USD LIBOR+1.50
2015.01.19~
2015.12.27 ￦ 1,922,680 ￦ 1,701,413
Long-term debentures 2.21~5.50,
1M USD LIBOR+0.55
2016.01.08~
2020.10.29 5,817,768 5,284,120
7,740,448 6,985,533
Discounts on debenture (10,321) (7,271)
Debenture, net ￦ 7,730,127 ￦ 6,978,262
The outstanding debenture is non-guaranteed corporate bonds, with their principals to be redeemed by
installment or at maturity. Bond issuance costs are recorded as discounts on debenture and amortized using
the effective interest rate method.

- 24 -
(2) The redemption schedule for the debenture is as follows (Unit: Korean won in millions):
Period
Amount to be redeemed
as of December 31, 2014
2015.01.01~2015.12.31 ￦ 1,922,680
2016.01.01~2016.12.31 1,710,000
2017.01.01~2017.12.31 2,376,768
2018.01.01~2018.12.31 1,071,000
2019.01.01 and after 660,000
￦ 7,740,448
Period
Amount to be redeemed
as of December 31, 2013
2014.01.01~2014.12.31 ￦ 1,701,413
2015.01.01~2015.12.31 1,905,120
2016.01.01~2016.12.31 1,400,000
2017.01.01~2017.12.31 1,068,000
2018.01.01 and after 911,000
￦ 6,985,533
13. FINANCE LEASE LIABILITIES:
(1) Finance lease liabilities of December 31, 2014 and 2013, are as follows (Unit: Korean won in millions):
Minimum lease
payments
Present value of
minimum lease
payments
Minimum lease
payments
Present value of
minimum lease
payments
Less than 1 year ￦ - ￦ - ￦ 301 ￦ 298
1~5 years - - - -
Present value discounts - (3)
Present value ￦ - ￦ 298
14. RETIREMENT BENEFIT PLAN:
(1) Defined Contribution Plan
The expense recognized in the consolidation statements of comprehensive income related to
postemployment benefit plan under the defined contribution plan for the years ended December 31, 2014
and 2013, are as follows (Unit: Korean won in millions):
Defined contribution plan ￦ 55 ￦ 26
(2) Net Employee Benefits Liability
The details of net employee benefits liability as of December 31, 2014 and 2013, are as follows (Unit:
Net defined benefit obligation ￦ 16,332 ￦ 3,367
Long term employee benefits 3,553 -
Total ￦ 19,885 ￦ 3,367

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(3) Defined benefit plan
1) General
The Consolidated Entity operates a defined benefit plan that is linked to final payment. Plan assets mainly
consist of deposits and are exposed to risk of fall in interest rate.
2) The amounts recognized in the consolidated statements of financial position related to retirement
benefit obligation as of December 31, 2014 and 2013, are as follows (Unit: Korean won in millions):
Present value of defined benefit obligation ￦ 69,740 ￦ 46,403
Fair value of plan assets (53,379) (43,006)
Transferred to National Pension Fund (29) (30)
Retirement benefit obligation ￦ 16,332 ￦ 3,367
3) Net defined benefit obligation
Changes in present value of net defined benefit obligation for the years ended December 31, 2014 and
December 31, 2014
Present value of the
defined benefit
obligation Plan assets
National Pension
Fund
Net defined benefit
obligation
Beginning balance ￦ 46,403 ￦ (43,006) ￦ (30) ￦ 3,367
Contributions from the
employer - (12,990) - (12,990)
Current service cost 9,714 - - 9,714
Interest expense (income) 1,751 (1,448) - 303
Return on plan assets,
excluding amounts
included in interest income
above - 344 - 344
Actuarial gains and losses
arising from changes in
demographic assumptions 4,658 - - 4,658
financial assumptions 5,740 - - 5,740
experience adjustments 8,272 - - 8,272
Transfer of employees
between the Company and
its related companies 199 410 - 609
Benefits paid (6,997) 3,311 1 (3,685)
Ending balance ￦ 69,740 ￦ (53,379) ￦ (29) ￦ 16,332

- 26 -
December 31, 2013
Present value of the
defined benefit
obligation Plan assets
National Pension
Fund
Net defined benefit
obligation
Beginning balance ￦ 44,474 ￦ (33,745) ￦ (34) ￦ 10,695
Contributions from the
employer - (11,100) - (11,100)
Current service cost 9,548 - - 9,548
Interest expense (income) 1,519 (1,087) - 432
Return on plan assets,
excluding amounts
included in interest
income above - 38 - 38
demographic assumptions 185 - - 185
financial assumptions (1,186) - - (1,186)
experience adjustments (4,316) - - (4,316)
Transfer of employees
between the Company and
its related companies (169) (190) - (359)
Benefits paid (3,652) 3,078 4 (570)
Ending balance ￦ 46,403 ￦ (43,006) ￦ (30) ￦ 3,367
4) Details of fair values of plan assets as of December 31, 2014 and 2013, are as follows (Unit: Korean
won in millions):
Deposits ￦ 53,379 ￦ 43,006
5) Actuarial assumptions as of December 31, 2014 and 2013, are as follows:
Discount rate (%) 2.74 3.81
Expected rate of salary increase
(Executive) (%) 5.00 5.00
Expected rate of salary increase
(Employee) (%) 6.26 5.67
6) When all the other assumptions are maintained, if the significant actuarial assumptions change within
possible and reasonable ranges, the impacts on defined benefit obligations are as follows (Unit: Korean
won in millions):
Increase Decrease Increase Decrease
100 basis point (bp) changes in discount rate ￦ (6,706) ￦ 7,942 ￦ (3,032) ￦ 3,462
1% changes in future wage growth rate 7,876 (6,777) 3,469 (3,092)
The above sensitivity analysis does not represent actual changes of defined benefit obligations as the
actuarial assumptions do not change independently; this is because there are correlations between the
actuarial assumptions. The present value of defined benefit obligations is determined by the same methods
as the projected unit credit method used in calculating defined benefit obligations in the consolidated
statements of financial position.

- 27 -
(4) Long Term Employee Benefits
1) Changes of present value of long-term employee benefits liability for the year ended December 31,
December 31, 2014
Balance at beginning of year ￦ -
Increase 3,553
Balance at end of year ￦ 3,553
2) When all the other assumptions are maintained, if the significant actuarial assumptions change within
possible and reasonable ranges, the impacts on long-term employee benefits are as follows (Unit:
December 31, 2014
Increase Decrease
100 basis point (bp) changes in discount rate ￦ (315) ￦ 363
1% changes in future wage growth rate 342 (304)
15. UNEARNED REVENUE:
Details of unearned revenue as of December 31, 2014 and 2013, are as follows (Unit: Korean won in
millions):
Customer loyalty program ￦ 289,124 ￦ 318,730
Membership fee 75,657 74,327
Others 73 97
￦ 364,854 ￦ 393,154
16. PROVISION:
(1) Details of provision as of December 31, 2014 and 2013, are as follows (Unit: Korean won in millions):
Provision for unused credit limits ￦ 45,889 ￦ 47,497
Provision for mileage points 22,744 22,944
Asset Retirement Obligation 5,537 -
Other provisions 9,385 15,880
￦ 83,555 ￦ 86,321
(2) Provision for unused credit limits
For the years ended December 31, 2014 and 2013, the changes in provision for unused credit limits are as
Balance at beginning of year ￦ 47,497 ￦ 46,386
Increase (decrease) (1,608) 1,111
Balance at ending of year ￦ 45,889 ￦ 47,497

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