캐피탈 2016년 3분기 검토보고서 en

HYUNDAICAPITALSERVICES,INC.ANDSUBSIDIARIES
CondensedConsolidatedInterimFinancialStatements
(Unaudited)
September30,2016
(WithIndependentAuditors’ReviewReportThereon)

HYUNDAI CAPITAL SERVICES, INC. AND SUBSIDIARIES
Condensed Consolidated Interim Financial Statements
(Unaudited)
September 30, 2016
Table of Contents
Page
Independent Auditors’ Review Report 1
Condensed Consolidated Interim Statements of Financial Position 3
Condensed Consolidated Interim Statements of Comprehensive Income 5
Condensed Consolidated Interim Statements of Changes in Equity 7
Condensed Consolidated Interim Statements of Cash Flows 8
Notes to Condensed Consolidated Interim Financial Statements 9

KPMG Samjong Accounting Corp.
27th Floor, Gangnam Finance Center,
152, Teheran-ro, Gangnam-gu,
06236 Seoul,
Republic of Korea
Tel: 82 2112 0100
Fax: 82 2112 0101
www.kr.kpmg.com
Independent Auditors’ Review Report
(Based on a report originally issued in Korean)
The Board of Directors and Shareholders
Hyundai Capital Services, Inc.:
We have reviewed the accompanying condensed consolidated interim financial statements of Hyundai
Capital Services, Inc. and its subsidiaries (the Group), which comprise the condensed consolidated
statement of financial position as of September 30, 2016, the condensed consolidated statements of
comprehensive income for the three-month and nine-month periods ended September 30, 2016 and
2015, the condensed consolidated statements of changes in equity and cash flows for the nine-month
periods ended September 30, 2016 and 2015, and notes, comprising a summary of significant
accounting policies and other explanatory information.
Management’s Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these condensed consolidated
interim financial statements in accordance with Korean International Financial Reporting Standards (K-
IFRS) No.1034, Interim Financial Reporting, and for such internal control as management determines
is necessary to enable the preparation of financial statements that are free from material misstatement,
whether due to fraud or error.
Auditors’ Responsibility
Our responsibility is to issue a report on these condensed consolidated interim financial statements
based on our reviews.
We conducted our reviews in accordance with the Review Standards for Quarterly and Semiannual
Financial Statements established by the Securities and Futures Commission of the Republic of Korea.
A review of interim financial information consists of making inquiries, primarily of persons responsible
for financial and accounting matters, and applying analytical and other review procedures. A review is
substantially less in scope than an audit conducted in accordance with Korean Standards on Auditing
and consequently does not enable us to obtain assurance that we would become aware of all significant
matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
Conclusion
Based on our reviews, nothing has come to our attention that causes us to believe that the accompanying
condensed consolidated interim financial statements referred to above are not prepared, in all material
respects, in accordance with K-IFRS No.1034, Interim Financial Reporting.

KPMG Samjong Accounting Corp.
27th Floor, Gangnam Finance Center,
152, Teheran-ro, Gangnam-gu,
06236 Seoul,
Republic of Korea
Tel: 82 2112 0100
Fax: 82 2112 0101
www.kr.kpmg.com
2
Other matters
The procedures and practices utilized in the Republic of Korea to review such condensed consolidated
interim financial statements may differ from those generally accepted and applied in other countries.
The consolidated statement of financial position of the Group as of December 31, 2015, and the related
consolidated statements of comprehensive income, changes in equity and cash flows for the year then
ended, which are not accompanying this report, were audited by us in accordance with Korean Standards
on Auditing and our report thereon, dated February 25, 2016, expressed an unqualified opinion. The
accompanying condensed consolidated statement of financial position of the Group as of December 31,
2015, presented for comparative purposes, is consistent, in all material respects, with the audited
consolidated financial statements from which it has been derived.
Seoul, Republic of Korea
November 11, 2016
This report is effective as of November 11, 2016, the review report date. Certain subsequent events
or circumstances, which may occur between the review report date and the time of reading this report,
could have a material impact on the accompanying condensed consolidated interim financial
statements and notes thereto. Accordingly, the readers of the review report should understand that the
above review report has not been updated to reflect the impact of such subsequent events or
circumstances, if any.

Condensed Consolidated Interim Statements of Financial Position (Unaudited)
As of September 30, 2016 and December 31, 2015
(In millions of Korean won)
September 30, December 31,
Notes 2016 2015
Assets
Cash and due from other financial institutions
Cash and cash equivalents 22 W 944,794 862,864
Due from banks 5,291 2,496
Short-term financial investments 4 963,828 758,705
1,913,913 1,624,065
Securities 5
Available-for-sale securities 88,034 77,550
Investments in associates 409,421 243,449
497,455 320,999
Loans receivable 6,7,25
Loans receivable 8,760,888 8,816,056
Allowance for loan losses (375,427) (323,946)
8,385,461 8,492,110
Installment financial assets 6,7,25
Automobile installment financing receivables 9,237,815 8,930,463
Allowance for loan losses - automobile (80,779) (73,140)
Durable goods installment financing receivables 263 614
Allowance for loan losses - durable goods (19) (82)
Mortgage installment financing receivables 2,206 3,237
Allowance for loan losses - mortgage (38) (86)
9,159,448 8,861,006
Lease receivables 6,7,25
Finance lease receivables 2,510,060 2,675,631
Allowance for loan losses - finance lease (40,427) (46,445)
Cancelled lease receivables 27,396 23,156
Allowance for loan losses - cancelled lease (24,878) (21,689)
2,472,151 2,630,653
Leased assets
Operating lease assets 2,314,150 2,058,300
Accumulated depreciation (652,246) (594,607)
Accumulated impairment losses (498) (433)
Cancelled lease assets 30,257 7,645
Accumulated impairment losses (4,924) (4,150)
1,686,739 1,466,755
Property and equipment, net 8 267,615 253,213
Other assets
Non-trade receivables 127,710 128,292
Allowance for doubtful accounts 7 (9,749) (7,822)
Accrued revenues 95,448 100,952
Allowance for doubtful accounts 7 (16,964) (11,164)
Advance payments 18,216 125,694
Prepaid expenses 63,177 61,241
Intangible assets 9 172,864 60,255
Derivative assets 13,26 53,998 179,154
Leasehold deposits 21,358 22,180
526,058 658,782
Total assets W 24,908,840 24,307,583
See accompanying notes to the condensed consolidated interim financial statements
3

Condensed Consolidated Interim Statements of Financial Position (Unaudited) (Continued)
As of September 30, 2016 and December 31, 2015
September 30, December 31,
Notes 2016 2015
Liabilities
Borrowed funds 10
Borrowings W 1,506,491 1,763,872
Bonds issued 18,138,468 17,637,558
19,644,959 19,401,430
Other liabilities
Non-trade payables 264,388 325,070
Accrued expenses 152,844 175,132
Unearned revenue 24,858 39,394
Withholdings 70,129 60,240
Derivative liabilities 13,26 368,128 140,234
Current tax liabilities 47,374 43,380
Employee benefit liabilities 11 55,374 30,797
Deposits received 477,485 546,574
Deferred income tax liabilities 19 36,312 43,353
Provisions 12 34,699 7,053
Other 21 40
1,531,612 1,411,267
Total liabilities 21,176,571 20,812,697
Equity
Equity attributable to the owners of the Company
Issued capital 496,537 496,537
Capital surplus 407,539 407,539
Accumulated other comprehensive loss 21 (90,529) (45,267)
Retained earnings 14 2,908,949 2,629,079
3,722,496 3,487,888
Non-controlling interests 9,773 6,998
Total equity 3,732,269 3,494,886
Total liabilities and equity W 24,908,840 24,307,583
4

Condensed Consolidated Interim Statements of Comprehensive Income (Unaudited)
For the three-month and nine-month periods ended September 30, 2016 and 2015
Three-month periods Nine-month periods
ended September 30, ended September 30,
Notes 2016 2015 2016 2015
Operating revenue
Interest income 15 W 7,619 2,686 20,828 16,587
Gain on valuation and sale of securities 276 546 1,055 1,388
Income on loans 15,16 240,595 259,784 715,241 825,787
Income on installment financial assets 15,16 124,901 113,204 369,023 319,944
Income on leases 15,16 208,696 217,538 654,957 644,217
Gain on sale of loans 14,627 3,358 97,993 43,841
Gain on foreign currency transactions 295,495 20,075 345,128 61,688
Dividend income 1,706 1,672 3,828 3,915
Other operating income 17 570 244,973 120,492 488,200
Total operating revenue 894,485 863,836 2,328,545 2,405,567
Operating expenses
Interest expense 15 144,134 155,037 449,098 491,232
Lease expense 16 133,573 129,872 409,944 380,132
Provision for loan losses 7 74,578 69,062 198,303 218,273
Loss on foreign currency transactions (27,453) 208,042 15,451 380,015
General and administrative expenses 18 182,917 179,587 524,334 539,646
Other operating expenses 17 334,670 29,723 408,240 96,284
Total operating expenses 842,419 771,323 2,005,370 2,105,582
Operating income 52,066 92,513 323,175 299,985
Non-operating income
Share in net income of associates
under the equity method 5 13,693 9,738 46,342 28,825
Gain on sale of property and equipment — 32 384 1,282
Reversal of impairment loss 9
on intangible assets — — 54 —
Other 1,570 959 5,351 3,374
Total non-operating income 15,263 10,729 52,131 33,481
Non-operating expenses
Share in net loss of associates
under the equity method 5 — (18) — —
Loss on sale of investments in associates 5 299 — 299 —
Loss on sale of property and equipment 111 111 135 477
Donation 10 66 632 195
Other 59 56 421 458
Total non-operating expenses 479 215 1,487 1,130
Profit before income taxes 66,850 103,027 373,819 332,336
Income tax expense 19 17,184 29,691 96,673 87,440
Profit for the period W 49,666 73,336 277,146 244,896
5

Condensed Consolidated Interim Statements of Comprehensive Income (Unaudited) (Continued)
For the three-month and nine-month periods ended September 30, 2016 and 2015
Three-month periods Nine-month periods
Notes 2016 2015 2016 2015
Other comprehensive income (loss), 21
net of income taxes
Items that will never be reclassified
to profit or loss:
Remeasurements of defined
benefit plans W (6,045) (2,274) (8,454) (4,888)
Items that are or may be reclassified
subsequently to profit or loss:
Net change in unrealized gains and
losses on available-for-sale
securities 210 5,007 (2,720) 11,592
Share in other comprehensive income
(loss) of associates under the
equity method (20,736) 10,717 (31,589) 10,405
Net change in effective portion of
cash flow hedges 8,851 5,513 (1,763) 3,365
Net change in foreign currency
translation adjustments (2,774) 1,587 (1,153) 789
Total other comprehensive
income (loss), net of
income taxes (20,494) 20,550 (45,679) 21,263
Total comprehensive income for the period W 29,172 93,886 231,467 266,159
Profit attributtable to:
Owners of the Company W 50,996 73,336 279,870 244,896
Non-controlling interests (1,330) — (2,724) —
W 49,666 73,336 277,146 244,896
Total comprehensive income
attributtable to:
Owners of the Company W 31,044 93,886 234,609 266,159
Non-controlling interests (1,872) — (3,142) —
W 29,172 93,886 231,467 266,159
Earnings per share
Basic and diluted earnings per share 20 W 500 738 2,791 2,466
(in won)
6

Condensed Consolidated Interim Statements of Changes in Equity (Unaudited)
For the nine-month periods ended September 30, 2016 and 2015
Equity attributable to owners of the Company
Capital surplus Accumulated
Additional Other other com- Non-
Issued paid-in capital prehensive Retained controlling Total
Capital capital surplus income earnings Total interests equity
Balances as of January 1, 2015 W 496,537 369,339 38,200 (64,595) 2,598,085 3,437,566 — 3,437,566
Profit for the period — — — — 244,896 244,896 — 244,896
Other comprehensive income (loss):
Net change in unrealized gains and losses on
available-for-sale securities — — — 11,592 — 11,592 — 11,592
Share in other comprehensive loss of associates
under the equity method — — — 10,405 — 10,405 — 10,405
Net change in effective portion of cash flow hedges — — — 3,365 — 3,365 — 3,365
Net change in foreign currency translation adjustments — — — 789 — 789 — 789
Remeasurements of defined benefit plans — — — (4,888) — (4,888) — (4,888)
Total comprehensive income — — — 21,263 244,896 266,159 — 266,159
Balances as of September 30, 2015 W 496,537 369,339 38,200 (43,332) 2,842,981 3,703,725 — 3,703,725
Balances as of January 1, 2016 W 496,537 369,339 38,200 (45,267) 2,629,079 3,487,888 6,998 3,494,886
Profit for the period — — — — 279,870 279,870 (2,724) 277,146
Other comprehensive income (loss):
Net change in unrealized gains and losses on
available-for-sale securities — — — (2,720) — (2,720) — (2,720)
Share in other comprehensive loss of associates
under the equity method — — — (31,589) — (31,589) — (31,589)
Net change in effective portion of cash flow hedges — — — (1,763) — (1,763) — (1,763)
Net change in foreign currency translation adjustments — — — (736) — (736) (417) (1,153)
Remeasurements of defined benefit plans — — — (8,454) — (8,454) — (8,454)
Total comprehensive income — — — (45,262) 279,870 234,608 (3,141) 231,467
Transaction with owners of the Company
Increase in non-controlling interests from contribution — — — — — — 5,916 5,916
Balances as of September 30, 2016 W 496,537 369,339 38,200 (90,529) 2,908,949 3,722,496 9,773 3,732,269
7

Condensed Consolidated Interim Statements of Cash Flows (Unaudited)
For the nine-month periods ended September 30, 2016 and 2015
Notes 2016 2015
Cash flows from operating activities
Cash generated from operations 22 W 375,477 350,808
Interest received 20,140 18,764
Interest paid (446,810) (494,422)
Dividends received 3,828 3,915
Income taxes paid (85,062) (93,655)
Net cash provided by (used in) operating activities (132,427) (214,590)
Cash flows from investing activities
Acquisition of investments in associates (163,134) —
Dividends received from associates 953 —
Proceeds from sale of investments in associates 578 —
Acquisition of property and equipment (31,055) (22,167)
Proceeds from sale of property and equipment 480 1,367
Acquisition of intangible assets (130,376) (6,894)
Proceeds from sale of intangible assets 979 37
Increase in leasehold deposits (1,331) (396)
Decrease in leasehold deposits 2,598 844
Net cash used in investing activities (320,308) (27,209)
Cash flows from financing activities
Proceeds from borrowings 1,364,800 1,124,974
Repayments of borrowings (1,772,333) (1,072,590)
Proceeds from issue of bonds 4,280,965 4,054,599
Repayments of bonds (3,344,680) (3,504,976)
Increase in non-controlling interests from contribution 5,916 —
Net cash provided by financing activities 534,668 602,007
Effect of exchange rate fluctuations on
cash and cash equivalents held (3) (9)
Net increase (decrease) in cash and cash equivalents 81,930 360,199
Cash and cash equivalents at beginning of the year 22 862,864 608,207
Cash and cash equivalents at end of the period 22 W 944,794 968,406
8

Notes to Condensed Consolidated Interim Financial Statements
(Unaudited)
September 30, 2016
9 (Continued)
1. Reporting Entity
Hyundai Capital Services, Inc. (the Company) was established on December 22, 1993, to engage
in installment financing, facilities leasing and new technology financing. The Company changed its
trade name from Hyundai Auto Finance Co., Ltd. to Hyundai Financial Services Co. on April 21, 1995,
and changed its trade name once again to Hyundai Capital Services, Inc. on December 30, 1998. In
accordance with the Monopoly Regulation and Fair Trade Act, the Company is incorporated into
Hyundai Motor Company Group. As of September 30, 2016, the Company’s operations are
headquartered at 3 Uisadang-daero, Yeongdeungpo-gu, Seoul, Korea. Its major shareholders are
Hyundai Motor Company, Kia Motors Corporation and IGE USA Investments with 59.67%, 20.10%
and 20.00% ownership, respectively.
IGE USA Investments entered into an agreement with Elysia the 6th
Co.,Ltd and Jace C the 3rd
.,Ltd
to sell its entire ownership interests equally to the two companies, each receiving 10% of ownership
interests, respectively, on July 26, 2016, which was completed on October 17, 2016.
The consolidated financial statements include the accounts of the Company and its subsidiaries,
including Autopia 45th
Asset Securitization Specialty Company (ABS SPC) with trust for the
securitization, and other subsidiaries as summarized below (collectively, the Group). Investments in
Beijing Hyundai Auto Finance Co., Ltd. and four other associates are accounted for under the equity
method.
(1) The Group’s subsidiaries
Subsidiaries as of September 30, 2016 and December 31, 2015 are as follows. Asset securitization
vehicles are special purpose vehicles which are sponsored by the Group under its securitization program.
The Group is exposed to variability of returns of the vehicles through its holding of debt securities in
the vehicles and by issuing financial guarantees to the vehicles; and the Group manages key decisions
that significantly affect these vehicles’ returns. As a result, the Group has concluded that it controls
these vehicles even though its ownership interests over these securitization vehicles do not exceed 50%.
(*1) Including trusts for asset securitization
(*2) Hyundai Capital Europe GmbH holds 100% ownership interests of Hyundai Capital Services
Limited Liability Company located at Russia.
Ownership September 30, December 31,
Location (%) 2016 2015
Asset securitization vehicles:
Korea 0.9 Autopia 45
th
and 46
th
Autopia 44
th
, 45
th
, 46
th
,
ABS SPCs (*1) and 47
th
ABS SPCs (*1)
0.5 Autopia 49
th
, 50
th
, 51
st
, 52
nd
, 54
th
, 55
th
, 56
th
, Autopia 49
th
, 50
th
, 51
st
, 52
nd
, 54
th
,
57th
, 58th
, 59th
, 60th,
61st
, and 62nd
ABS SPCs (*1) 55th
, 56th
, 57th
, 58th
and 59th
ABS SPCs (*1)
0.31 HB Fourth ABS SPC HB Fourth ABS SPC
Limited liability companies:
Germany 100 Hyundai Capital Europe GmbH (*2) Hyundai Capital Europe GmbH (*2)
80 Hyundai Capital Services Deutschland GmbH Hyundai Capital Services Deutschland GmbH
India 100 Hyundai Capital India Private Ltd. Hyundai Capital India Private Ltd.
Brazil 100 Hyundai Capital Brasil LTDA Hyundai Capital Brasil LTDA
Stock company:
Australia 100 Hyundai Capital Australia Pty Limited —
Trusts:
Korea 100 Specified money trust (33 trusts) Specified money trust (20 trusts)

(Unaudited)
September 30, 2016
10 (Continued)
(2) Changes in subsidiaries
Subsidiaries that are included in or excluded from the Group’s consolidated financial statements,
except for changes in the number of specified money trust accounts in which the Group invests, during
the nine-month period ended September 30, 2016 are as follows:
(a) Subsidiaries newly included in the consolidated financial statements during the period
 Autopia 60th
, 61st
and 62nd
ABS SPCs (including trusts for asset securitization): structured
entities newly established for the Autopia asset securitization program
 Hyundai Capital Australia Pty Limited: a subsidiary newly established in Australia on March 9,
2016
(b) Subsidiaries excluded from the consolidated financial statements during the period
 Autopia 44th
and 47th
ABS SPCs (including trust for asset securitization): structured entities
dissolved
(3) Key financial information of subsidiaries
Key financial information of subsidiaries as of and for the nine-month period ended September 30,
2016 is summarized as follows:
(4) Nature of risks related to consolidated structured entities
As of September 30, 2016, the Company provides guarantees to the counterparties of currency
swaps at Autopia 49th
, 52nd
, 57th
, 59th
and 60th
ABS SPCs, structured entities that the Group consolidates,
in relation to asset backed securitized notes issued. These guarantees would require the Company to
reimburse the swap counterparties for losses that they incur if these structured entities do not perform
in accordance with the contractual terms of the swaps.
(in millions of Korean won) Total
compre-
Operating Profit (loss) hensive
Assets Liabilities Equity revenue for the year income (loss)
Hyundai Capital Europe GmbH W 8,664 4,900 3,764 2,731 327 915
Hyundai Capital Services Deutschland GmbH 57,487 8,622 48,865 10,398 (13,619) (15,708)
Hyundai Capital India Private Ltd. 835 141 694 874 57 7
Hyundai Capital Brasil LTDA 5,659 110 5,549 3,764 1,487 2,003
Hyundai Capital Australia Pty Limited 803 105 698 445 40 13
Autopia ABS SPCs 3,680,323 3,688,152 (7,829) 141,957 (299) (6,650)
Autopia ABS trusts 6,731,288 6,329,341 401,947 393,372 80,812 80,812
HB ABS SPCs 637 3 634 66 24 24
Specified money trusts 981,854 — 981,854 1,754 1,754 1,754

(Unaudited)
September 30, 2016
11 (Continued)
2. Basis of Preparation
(1) Statement of compliance
The condensed consolidated interim financial statements have been prepared in accordance with
Korean International Financial Reporting Standards (K-IFRS), as prescribed in the Act on External
Audits of Corporations in the Republic of Korea.
These condensed consolidated interim financial statements were prepared in accordance with K-
IFRS No. 1034, Interim Financial Reporting, as part of the period covered by the Group’s K-IFRS
annual financial statements. Selected explanatory notes are included to explain events and transactions
that are significant to an understanding of the changes in financial position and performance of the
Group since the last annual consolidated financial statements as at and for the year ended December 31,
2015. These condensed consolidated interim financial statements do not include all of the disclosures
required for full annual financial statements.
(2) Use of estimates and judgments
The preparation of the condensed consolidated interim financial statements in conformity with K-
IFRS requires management to make judgments, estimates and assumptions that affect the application
of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual
results may differ from these estimates.
Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting
estimates are recognized in the period in which the estimates are revised and in any future periods
affected.
In preparing these condensed consolidated interim financial statements, the significant judgments
made by management in applying the Group’s accounting policies and the key sources of estimation
uncertainty were the same as those that applied to the consolidated financial statements as of and for
the year ended December 31, 2015.
(3) Measurement of fair value
The Group regularly reviews significant unobservable inputs and valuation adjustments. If third
party information, such as broker quotes or pricing services, is used to measure fair values, then the
Group assesses the evidence obtained from the third parties to support the conclusion that such
valuations meet the requirements of K-IFRS, including the level in the fair value hierarchy.
When measuring the fair value of an asset or a liability, the Group uses market observable data as
far as possible. Fair values are categorized into different levels in a fair value hierarchy based on the
inputs used in the valuation techniques as follows.
 Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities.
 Level 2: inputs other than quoted prices included in Level 1 that are observable for the asset
or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).
 Level 3: inputs for the asset or liability that are not based on observable market data
(unobservable inputs).
If the inputs used to measure the fair value of an asset or a liability might be categorized in different
levels of the fair value hierarchy, then the fair value measurement is categorized in its entirety in the
same level of the fair value hierarchy as the lowest level input that is significant to the entire
measurement.

(Unaudited)
September 30, 2016
12 (Continued)
The Group recognizes transfers between levels of the fair value hierarchy at the end of the reporting
period during which the change has occurred.
Further information about the assumptions made in measuring fair values is included in Note 27.

(Unaudited)
September 30, 2016
13 (Continued)
3. Significant Accounting Policies
The significant accounting policies applied by the Group in preparation of its consolidated financial
statements are included below.
(1) Changes in accounting policies
Except as described below, the accounting policies applied by the Group in these consolidated
financial statements are the same as those applied by the Group in its consolidated financial statements
as of and for the year ended December 31, 2015. The Group has applied the following amendments to
standards, with a date of initial application of January 1, 2016.
Amendments to K-IFRS No. 1001, Presentation of Financial Statements (amended by Disclosure
Initiative)
To address some of the perceived problems with current disclosure requirements, clarifications to
K-IFRS 1001, Presentation of Financial Statements, was published in May 2015. There is an emphasis
on materiality. Specific single disclosures that are not material do not have to be presented – even if
they are a minimum requirement of a standard. An entity shall also consider whether to provide
additional disclosures when compliance with the specific requirements in K-IFRS is insufficient to
enable users of financial statements to understand the impact of particular transactions, other events and
conditions on the entity's financial position and financial performance. The presentation in the statement
of comprehensive income of items of other comprehensive income arising from joint ventures and
associates accounted for using the equity method follows K-IFRS 1001’s approach of splitting items
that may, or that will never, be reclassified to profit or loss.
These narrow-scope amendments are effective for annual periods beginning on or after January 1,
2016. The adoption of the amendments had no significant impact on the Group’s consolidated financial
statements.
(2) New accounting standards issued but not yet effective
Anumber of new standards and amendments to standards are effective for annual periods beginning
after January 1, 2016, and earlier adoption is permitted; however the Group has not early adopted the
following new or amended standards in preparing these consolidated financial statements.
K-IFRS No. 1109, Financial Instruments
K-IFRS 1109, published in December 2015, replaces the existing guidance in K-IFRS No. 1039,
Financial Instruments: Recognition and Measurement. K-IFRS 1109 includes revised guidance on the
classification and measurement of financial instruments, a new expected credit loss model for
calculating impairment on financial assets, and new general hedge accounting requirements. It also
carries forward the guidance on recognition and derecognition of financial instruments from K-IFRS
No. 1039.
K-IFRS 1109 is effective for annual periods beginning on or after January 1, 2018, with early
adoption permitted.
The Group is assessing the potential impact on its consolidated financial statements resulting from
the application of K-IFRS 1109.

(Unaudited)
September 30, 2016
14 (Continued)
K-IFRS No. 1115, Revenue from Contracts with Customers
K-IFRS 1115, published in January 2016, establishes a comprehensive framework for determining
whether, how much and when revenue is recognized. It replaces existing revenue recognition guidance,
including K-IFRS No. 1018, Revenue, K-IFRS No. 1011, Construction Contracts and K-IFRS No. 2113,
Customer Loyalty Programmes.
K-IFRS 1115 is effective for annual reporting periods beginning on or after January 1, 2018, with
early adoption permitted.
The Group is assessing the potential impact on its consolidated financial statements resulting from
the application of K-IFRS 1115.

(Unaudited)
September 30, 2016
15 (Continued)
4. Short-term Financial Investments
Short-term financial investments as of September 30, 2016 and December 31, 2015 are as follows:
For liquidity management, the Group holds short-term investments in excess of immediate funding
needs. These excess funds are invested in short-term, highly liquid and investment grade money market
instruments, which provide liquidity for the Group’s short-term funding needs and flexibility in the use
of other funding sources.
(1) Debt securities
Details of debt securities in short-term financial investments as of September 30, 2016 and
December 31, 2015 are as follows:
(2) Beneficiary certificates
Details of beneficiary certificates in short-term financial investments as of September 30, 2016 and
(in millions of Korean won) September 30, December 31,
2016 2015
Debt securities W 941,812 658,701
Beneficiary certificates 22,016 100,004
W 963,828 758,705
(in millions of Korean won) September 30, 2016
Interest Acquisition Carrying
Details rate (%) cost amount
Commercial paper and Kyobo Securities Co., Ltd.
repurchase agreements and 157 others 1.41 ~ 1.80 W 938,949 941,812
(in millions of Korean won) December 31, 2015
Interest Acquisition Carrying
Details rate (%) cost amount
Commercial paper and Kyobo Securities Co., Ltd.
repurchase agreements and 110 others 1.49~1.90 W 657,811 658,701
Acquisition Carrying
Details cost amount
Money market funds Dongbu Together Corporate MMF 2 C W 2,000 2,015
Money market funds BNK Corporate MMF 1 10,000 10,001
Money market funds Heungguk Safe MMF 10,000 10,000
W 22,000 22,016
Acquisition Carrying
Details cost amount
Money market funds Hana UBS Class One MMF K-5 W 100,000 100,004

(Unaudited)
September 30, 2016
16 (Continued)
5. Securities
Securities as of September 30, 2016 and December 31, 2015 are as follows:
2016 2015
Available-for-sale securities
Equity securities
Marketable equity securities W 20,088 24,694
Unlisted equity securities 13,231 11,656
33,319 36,350
Debt securities
Government and public bonds 1,148 2,296
Corporate bonds 30,834 31,397
31,982 33,693
Beneficiary certificates 22,733 7,507
88,034 77,550
Investments in associates 409,421 243,449
W 497,455 320,999

(Unaudited)
September 30, 2016
17 (Continued)
5.1. Available-for-sale Securities
Available-for-sale securities as of September 30, 2016 and December 31, 2015 are as follows:
(1) Equity securities
(*1) The fair value of Hyundai Finance Corporation (HFC) is estimated at the average of appraisal
value quoted from two independent valuation service providers, using the valuation technique based on
the net asset value approach (NAV model), and the market approach. Under the net asset value approach,
a technique generally considered to be under cost approach, the fair value of unlisted equity securities
is measured based on the investee’s assets and liabilities. Under the market approach, comparable entity
valuation multiples (one-year average price-to-book ratio) derived from quoted prices in exchange
markets is used in applying valuation technique. The Group has reviewed the underlying assumptions
and concurs with the methodology employed.
(2) Debt securities
The fair value of Seoul Metropolitan Rapid Transit Corp. and other Korean municipal bonds is
quoted from broker and dealer companies. The fair value of Autopia 53rd
ABS SPC is quoted from an
independent valuation service provider, using the valuation technique based on the income approach
(DCF model).
(3) Beneficiary certificates
The fair value of the beneficiary certificate is quoted from an independent valuation service
provider, using the valuation technique based on the net asset value approach (NAV model).
(in millions of Korean won) Carrying amount
Number Ownership Acquisition September 30, December 31,
of shares (%) cost 2016 2015
Marketable equity securities
NICE Information Service Co., Ltd. 1,365,930 2.25 W 3,312 11,091 14,001
NICE Holdings Co., Ltd. 491,620 1.30 3,491 8,997 10,693
Unlisted equity securities
Hyundai Finance Corporation (*1) 1,700,000 9.29 9,888 13,065 11,487
Korean Egloan, Inc. 4,000 3.12 100 100 100
Golfclub Lich AG 14 0.59 60 66 69
W 16,851 33,319 36,350
Interest rate Acquisition September 30, December 31,
Issuer (%) cost 2016 2015
Government and Seoul Metropolitan Rapid
public bonds Transit Corp. and other
Korean municipal bonds 1.50 W 1,798 1,148 2,296
Corporate bonds Autopia 53rd
ABS SPC 3.59, 4.42 30,000 30,834 31,397
W 31,798 31,982 33,693
Acquisition September 30, December 31,
cost 2016 2015
Hyundai Ship Special Asset Investment Trust III W 4,951 5,100 5,493
Hi Ocean PCTC PF Special Asset Ship 1 967 979 1,012
Hi Ocean PCTC PF Special Asset Ship 2 1,000 1,002 1,002
Hi Ocean Tanker Prof PF SA Ship 1 9,504 9,583 —
Multi Asset KDB Ocean Value Up Private Fund Special Asset Trust 8 6,070 6,069 —
W 22,492 22,733 7,507

(Unaudited)
September 30, 2016
18 (Continued)
5.2. Investments in Associates
(1) Details of investments in associates
Details of investments in associates as of September 30, 2016 and December 31, 2015 are as
follows:
(*1) While the Group holds less than 20% of the voting rights, it has the ability to exercise
significant influence through representation on the board of directors or equivalent governing body of
the investee. Therefore, investments in these entities are accounted for using the equity method.
(*1) While the Group holds less than 20% of the voting rights, it has the ability to exercise
significant influence through representation on the board of directors or equivalent governing body of
the investee. Therefore, investments in these entities are accounted for using the equity method.
(*2) Due to the unavailability of the financial statements as of December 31, 2015, the equity
method was applied using the investee’s financial statements as of November 30, 2015. There were no
significant transactions between November 30 and December 31, 2015.
September 30, 2016
Principal Date of
Ownership place of financial
(%) business statements Industry
Korea Credit Bureau (*1) 7.00 Korea 9/30/2016 Credit information service
Hyundai Capital Germany GmbH 30.01 Germany 9/30/2016 Automobile finance brokerage
Hyundai Capital UK Ltd. 29.99 U.K. 9/30/2016 Automobile finance
Beijing Hyundai Auto Finance Co., Ltd. 46.00 China 9/30/2016 Automobile finance
December 31, 2015
Principal Date of
Ownership place of financial
(%) business statements Industry
Hi Network, Inc. (*1)(*2) 19.99 Korea 11/30/2015 Insurance brokerage
Korea Credit Bureau (*1) 7.00 Korea 12/31/2015 Credit information service
Hyundai Capital Germany GmbH 30.01 Germany 12/31/2015 Automobile finance brokerage
Hyundai Capital UK Ltd. 29.99 U.K. 12/31/2015 Automobile finance
Beijing Hyundai Auto Finance Co., Ltd. 46.00 China 12/31/2015 Automobile finance

(Unaudited)
September 30, 2016
19 (Continued)
(2) Summary of financial information of investees
Summary of financial information of investees as of September 30, 2016 and December 31, 2015,
and for the nine-month periods ended September 30, 2016 and 2015, and the reconciliation of investee’s
net assets to the carrying amount of the investments in the Group’s financial statements are as follows:
The
Group’s
Total Total Issued Total share in Carrying
assets liabilities capital equity net assets Goodwill amount
Korea Credit Bureau W 61,925 10,918 10,000 51,007 3,570 1,037 4,607
Hyundai Capital Germany GmbH 3,611 554 3,547 3,057 918 — 918
Hyundai Capital UK Ltd. 2,393,272 2,247,374 96,055 145,898 43,755 — 43,755
Beijing Hyundai Auto Finance Co., Ltd. 4,170,125 3,387,209 708,965 782,916 360,141 — 360,141
(in millions of Korean won) Nine-month period ended September 30, 2016
Other Total
compre- compre-
Net hensive hensive
Operating Interest Interest income income income
revenue income expense (loss) (loss) (loss) Dividends
Korea Credit Bureau 35,792 185 — 601 - 601 —
Hyundai Capital Germany GmbH 1,467 19 — 628 (247) 381 —
Hyundai Capital UK Ltd. 91,941 91,504 22,072 26,969 (30,292) (3,323) —
Beijing Hyundai Auto Finance Co., Ltd. 357,173 343,894 116,900 82,340 (70,687) 11,653 —
The
Group’s
Total Total Issued Total share in Carrying
assets liabilities capital equity net assets Goodwill amount
Hi Network, Inc. W 6,640 2,628 333 4,012 803 — 803
Korea Credit Bureau 63,960 13,076 10,000 50,884 3,562 1,037 4,599
Hyundai Capital Germany GmbH 6,919 1,419 3,547 5,500 1,650 — 1,650
Hyundai Capital UK Ltd. 2,418,817 2,269,597 96,055 149,220 44,751 — 44,751
Beijing Hyundai Auto Finance Co., Ltd. 3,807,059 3,390,437 354,325 416,622 191,646 — 191,646
Other Total
compre- compre-
Net hensive hensive
Operating Interest Interest income income income
revenue income expense (loss) (loss) (loss) Dividends
Hi Network, Inc. W 10,170 36 — 793 — 793 —
Korea Credit Bureau 32,869 36 — 2,846 — 2,846 —
Hyundai Capital Germany GmbH 3,698 51 — 1,691 155 1,846 —
Hyundai Capital UK Ltd. 90,949 85,595 18,282 21,062 7,850 28,912 —
Beijing Hyundai Auto Finance Co., Ltd. 245,476 237,400 92,451 47,050 24,625 71,675 —

(Unaudited)
September 30, 2016
20 (Continued)
(3) Changes in investments in associates
The following tables present changes in the carrying amounts of investments in associates for the
nine-month periods ended September 30, 2016 and 2015:
(4) Goodwill related to associates
Goodwill that forms part of the carrying amount of investment in Korea Credit Bureau amounted
to W1,037 million as of September 30, 2016 and December 31, 2015.
Share in
other
compre-
Beginning Share in hensive Ending
balance Addition net income income (loss) Disposal Dividends balance
Hi Network, Inc. W 802 — 75 - (877) — —
Korea Credit Bureau 4,599 — 113 - — (105) 4,607
Hyundai Capital Germany GmbH 1,651 — 189 (74) — (848) 918
Hyundai Capital UK Ltd. 44,751 — 8,088 (9,084) — — 43,755
Beijing Hyundai Auto Finance Co., Ltd. 191,646 163,134 37,877 (32,516) — — 360,141
W 243,449 163,134 46,342 (41,674) (877) (953) 409,421
Share in
other
Share in compre-
Beginning net income hensive Ending
balance Addition (loss) income (loss) Disposal Dividends balance
Hi Network, Inc. 539 — 158 — — — 697
Korea Credit Bureau 4,321 — 199 — — — 4,520
Hyundai Capital Germany GmbH 1,550 — 508 45 — — 2,103
Hyundai Capital UK Ltd. 34,657 — 6,318 2,354 — — 43,329
Beijing Hyundai Auto Finance Co., Ltd. 168,051 — 21,642 11,328 — — 201,021
W 209,118 — 28,825 13,727 — — 251,670

(Unaudited)
September 30, 2016
21 (Continued)
6. Financial Receivables
Financial receivables as of September 30, 2016 and December 31, 2015are as follows:
Deferred
loan costs,
net of fees
(Initial
Unpaid direct fees,
outstanding net of costs Present Allowance
principal on finance value for loan Carrying
balance leases) discounts losses amount
Loans receivable
Loans W 8,709,776 52,564 (1,452) (375,427) 8,385,461
Installment financial assets
Automobile 9,190,516 47,299 — (80,779) 9,157,036
Durable goods 263 — — (19) 244
Mortgage 2,203 3 — (38) 2,168
9,192,982 47,302 — (80,836) 9,159,448
Lease receivables
Finance lease receivables 2,510,418 (358) — (40,427) 2,469,633
Cancelled lease receivables 27,396 — — (24,878) 2,518
2,537,814 (358) — (65,305) 2,472,151
W 20,440,572 99,508 (1,452) (521,568) 20,017,060
Deferred
loan costs,
net of fees
(Initial
Unpaid direct fees,
outstanding net of costs Present Allowance
principal on finance value for loan Carrying
balance leases) discounts losses amount
Loans receivable
Loans W 8,767,452 50,380 (1,776) (323,946) 8,492,110
Installment financial assets
Automobile 8,874,379 56,084 — (73,140) 8,857,323
Durable goods 614 — — (82) 532
Mortgage 3,234 3 — (86) 3,151
8,878,227 56,087 — (73,308) 8,861,006
Lease receivables
Finance lease receivables 2,675,964 (333) — (46,445) 2,629,186
Cancelled lease receivables 23,156 — — (21,689) 1,467
2,699,120 (333) — (68,134) 2,630,653
W 20,344,799 106,134 (1,776) (465,388) 19,983,769

(Unaudited)
September 30, 2016
22 (Continued)
7. Allowances for Loan Losses
The following tables present a roll-forward of in allowance for loan losses including allowance for
doubtful accounts for other assets for the nine-month periods ended September 30, 2016 and 2015:
Installment
Loans financial Lease Other
receivable assets receivables assets Total
Beginning balance W 323,946 73,308 68,134 18,986 484,374
Allowance related to loans transferred (6,327) (676) — — (7,003)
Charge-offs (186,919) (23,348) (787) (2,208) (213,262)
Recoveries 74,202 8,841 83 6,626 89,752
Unwinding of discounts (3,547) (223) (113) — (3,883)
Provision for (reversals of) allowance 174,072 22,934 (2,012) 3,309 198,303
Ending balance W 375,427 80,836 65,305 26,713 548,281
Installment
Loans financial Lease Other
receivable assets receivables assets Total
Beginning balance W 319,323 53,267 68,255 20,098 460,943
Charge-offs (273,557) (33,910) (525) (3,688) (311,680)
Recoveries 82,632 11,335 17 9,760 103,744
Unwinding of discounts (4,706) (236) (179) — (5,121)
Provision for (reversals of) allowance 190,676 33,230 1,456 (7,089) 218,273
Others (3,956) — (530) — (4,486)
Ending balance W 310,412 63,686 68,494 19,081 461,673

(Unaudited)
September 30, 2016
23 (Continued)
8. Property and Equipment
The following tables present a roll-forward of the carrying amounts of property and equipment for
the nine-month periods ended September 30, 2016 and 2015:
(in millions of
Korean won) Nine-month period ended September 30, 2016
Beginning Translation Ending
balance Addition Transfer Disposal Depreciation differences balance
Land W 97,883 — — — — — 97,883
Buildings 91,623 — — (5) (1,933) (1) 89,684
Vehicles 4,387 808 — (17) (631) 6 4,553
Fixture and
furniture 45,870 13,988 2,814 (176) (14,115) (103) 48,278
Others 2,155 — — (33) — 1 2,123
Construction
in progress 11,295 16,892 (2,814) — — (279) 25,094
W 253,213 31,688 — (231) (16,679) (376) 267,615
(in millions of
Beginning Translation Ending
balance Addition Transfer Disposal Depreciation differences balance
Land W 97,883 — — — — — 97,883
Buildings 87,589 377 6,143 — (1,844) — 92,265
Vehicles 5,062 430 — (86) (843) (28) 4,535
Fixture and
furniture 42,538 11,010 (4,151) (476) (14,937) 36 34,020
Others 2,101 — — — — — 2,101
Construction
in progress 13,149 11,877 (10,923) — — 51 14,154
W 248,322 23,694 (8,931) (562) (17,624) 59 244,958

(Unaudited)
September 30, 2016
24 (Continued)
9. Intangible Assets
The following tables present a roll-forward of the carrying amounts of intangible assets for the
nine-month periods ended September 30, 2016 and 2015:
(in millions of
Beginning Reversal of Translation Ending
balance Addtion Transfer Disposal Amortization impairment differences balance
Development costs W 21,025 92,097 666 — (12,918) — — 100,870
Memberships 27,354 871 — (921) — 54 5 27,363
Other intangible assets 11,876 12,276 30 (5) (3,950) — (37) 20,190
Construction in progress — 25,137 (696) — — — 24,441
W 60,255 130,381 — (926) (16,868) 54 (32) 172,864
(in millions of
Beginning Reversal of Translation Ending
balance Addition Transfer Disposal Amortization impairment differences balance
Development costs 24,896 5,822 — (37) (8,518) — — 22,163
Memberships 29,545 48 — — — — (2) 29,591
Other intangible assets 2,821 355 8,931 — (1,374) — — 10,733
W 57,262 6,225 8,931 (37) (9,892) — (2) 62,487

(Unaudited)
September 30, 2016
25 (Continued)
10. Borrowed Funds
(1) Borrowings
Borrowings as of September 30, 2016 and December 31, 2015 are as follows:
(2) Bonds issued
Bonds issued as of September 30, 2016 and December 31, 2015 are as follows:
(in millions of Annual Carrying amount
Korean won) interest September 30, December 31,
Lender rate (%) Maturity 2016 2015
Short-term borrowings:
Commercial paper Shinhan Bank and 1.64 ~ October 24, 2016 through
KEB Hana Bank 1.79 December 29, 2016 W 120,000 530,000
General loans Kookmin Bank 2.36 ~ October 31, 2016 through
and 5 others 3.00 September 29, 2017 730,000 860,000
850,000 1,390,000
Current portion of
long-term borrowings:
General loans Shinhan Bank 2.32 ~ January 26, 2017 through
and 4 others 4.03 September 18, 2017 190,333 229,872
foreign currency — —
190,333 229,872
Long-term borrowings:
General loans Shinhan Bank 1.97 ~ October 2, 2017 through
and 5 others 3.10 May 27, 2019 466,158 144,000
W 1,506,491 1,763,872
(in millions of Korean won) Annual Carrying amount
interest September 30, December 31,
rate (%) Maturity 2016 2015
Short-term notes:
Asset-backed short-term bonds 1.97 ~ Novemver 25, 2016 through W 80,000 230,000
Less: discount on bonds 2.02 December 8, 2016 (13) (239)
79,987 229,761
Current portion of long-term bonds:
Bonds 0.00 ~ October 6, 2016 through 4,881,295 3,987,105
Less: discount on bonds 5.95 September 27, 2017 (7,426) (3,900)
4,873,869 3,983,205
Long-term bonds:
Bonds 1.32 ~ October 2, 2017 through 13,205,146 13,446,494
Less: discount on bonds 6.53 September 26, 2026 (20,534) (21,902)
13,184,612 13,424,592
W 18,138,468 17,637,558

(Unaudited)
September 30, 2016
26 (Continued)
11. Employee benefit liabilities
(1) Defined contribution plans
The Group recognized W159 million and W104 million in the statement of comprehensive income
for retirement benefits based on the defined contribution plan for the nine-month periods ended
September 30, 2016 and 2015, respectively.
(2) Defined benefit plans
(a) Characteristics of the defined benefit plan
The Group operates a defined benefit plan. Under the plan, eligible employees are paid severance
benefits based on average salaries of three months prior to the termination and service periods. The plan
assets are mainly comprised of interest rate guaranteed type instruments, and therefore, are exposed to
the risk of declining interest rates.
(b) Roll-forward of present value of defined benefit obligations
The following tables present a roll-forward of the present value of defined benefit obligations for
the nine-month periods ended September 30, 2016 and 2015:
(c) Roll-forward of fair value of plan assets
The following tables present a roll-forward of the fair value of plan assets for the nine-month
periods ended September 30, 2016 and 2015:
(in millions of Korean won) Nine-month period ended
September 30
2016 2015
Beginning balance W 110,044 91,189
Current service costs 13,554 12,657
Interest cost 2,008 1,823
Actuarial losses (gains):
Experience adjustments (1,221) 1,699
Changes in economic assumptions 12,046 4,581
Changes in demographic assumptions — 6
10,825 6,286
Transfer of severance benefits from (to) related parties, net (146) 132
Benefits paid (11,741) (7,352)
Ending balance W 124,544 104,735
September 30
2016 2015
Contributions — —
Expected return on plan assets 1,489 1,373
Actuarial losses - Changes in economic assumptions (327) (163)
Transfer of severance benefits from (to) related parties, net (329) (188)
Benefits paid (10,699) (5,125)

(Unaudited)
September 30, 2016
27 (Continued)
(3) Other long-term employee benefit plans
The Group grants long service payments to employees and directors with certain periods of services.
The following tables present a roll-forward of other long-term benefit liability for the nine-month
periods ended September 30, 2016 and 2015:
September 30
2016 2015
Current service costs 486 428
Interest cost 122 121
Actuarial losses (gains) 23 425
Benefits paid (420) (398)

(Unaudited)
September 30, 2016
28 (Continued)
12. Provisions
Provisions include the allowance for unused loan commitments, residual value guarantees and asset
retirement obligations and others. A similar approach to the allowance for loan losses is used for
calculating the reserve for estimated credit losses related to unused loan commitments.
The following tables present a roll-forward of the provisions for the nine-month periods ended
September 30, 2016 and 2015:
(*1) The Group facilitates credits with limits, under which the Group provides commitments to
extend credits. Provision is made for estimated losses arising from unused loan commitments.
(*2) The Group facilitates certain installment financial receivable products which the Group
guarantees residual value of used automobiles for consumers. The Group also contracts with 3rd
party
guarantor to guarantee residual value of automobiles returned by consumers. Provision is made for
estimated expected losses arising from these residual value guarantees.
(*3) The Group recognizes provisions for asset retirement obligations (AROs) which represent the
estimated costs to restore the existing leased properties which are discounted to the present value using
the appropriate discount rate at the end of the reporting period. Disbursements of such costs are expected
to occur at the end of the lease contract. Such costs are reasonably estimated using the average lease
term and the average restoration expenses. The average lease term is calculated based on the past three-
year historical data of the expired leases. The average restoration expense is calculated based on the
actual costs incurred for the past three years using the five-year average inflation rate. The present value
of AROs is capitalized to the acquisition cost of leasehold improvements in fixture and furniture and
are depreciated over the useful life of the assets.
Unused Residual Asset
loan value retirement
commit- guaran- obliga-
ments (*1) tees (*2) tions (*3) Other Total
Beginning balance W 1,375 1,267 4,153 258 7,053
Provision for (release of) allowance (7) 27,130 (579) 25 26,569
Provisions made for AROs and
capitalized to related assets (*3) — — 1,041 — 1,041
Unwinding of interests — — 36 — 36
Ending balance W 1,368 28,397 4,651 283 34,699
Unused Residual Asset
loan value retirement
commit- guaran- obliga-
ments (*1) tees (*2) tions (*3) Other Total
Beginning balance W 1,431 809 5,208 — 7,448
Provision for (release of) allowance 58 404 (1,170) 255 (453)
Provisions made for AROs and
capitalized to related assets (*3) — — 664 — 664
Unwinding of interests — — 42 — 42
Ending balance W 1,489 1,213 4,744 255 7,701

(Unaudited)
September 30, 2016
29 (Continued)
13. Derivative Financial Instruments and Hedge Accounting
(1) Trading derivatives
The Group had no balance of trading derivatives as of September 30, 2016 and December 31, 2015.
(2) Derivatives designated and qualifying as hedging instruments
In the normal course of business, the Group enters into derivative contracts to manage its exposures
to changes in future cash flows arising from volatilities in interest rate and foreign currency exchange
rates related to its borrowings and bonds issued. The Group primarily uses interest rate swaps and
currency swaps to manage exposures to fluctuations in future cash flows due to interest rate risk and
foreign exchange risk. The Group also utilizes currency forward contracts to manage exposures to
fluctuation in future cash flows related to its lease contracts denominated in foreign currencies. There
was no change in overall strategy of the Group for cash flow hedges.
Derivatives that are designated and qualified as hedging instruments for cash flow hedges as of
September 30, 2016 and December 31, 2015 are as follows:
(*1) Notional principal amount represents Korean won equivalent amounts of foreign currencies
for won-to-foreign currency transactions and receiving foreign currencies for foreign currency-to-
foreign currency transactions that are translated with the benchmark foreign currency exchange rate
disclosed by the Bank of Korea as of the reporting date.
Accumulated
Notional other
principal comprehensive
amount (*1) Assets Liabilities income (loss)
Interest rate swaps W 1,560,000 13 11,729 (8,880)
Currency swaps 6,071,754 53,985 356,399 (18,583)
Foreign currency forwards — — — —
W 7,631,754 53,998 368,128 (27,463)
Accumulated
Notional other
principal comprehensive
amount (*1) Assets Liabilities income (loss)
Interest rate swaps W 950,000 109 12,492 (9,386)
Currency swaps 6,189,397 179,045 127,729 (16,316)
Foreign currency forwards 715 — 13 2
W 7,140,112 179,154 140,234 (25,700)

(Unaudited)
September 30, 2016
30 (Continued)
Changes in effective portion of cash flow hedges for the nine-month periods ended September 30,
2016 and 2015 are as follows:
The Group is expected to be exposed to the variability in future cash flows arising from hedged
items designated as cash flow hedges, until June 21, 2021. There was no cash flow hedges discontinued
during the nine-month periods ended September 30, 2016 and 2015.
There was no ineffective portion recognized in profit or loss related to cash flow hedges for the
nine-month periods ended September 30, 2016 and 2015.
Changes
in fair value
recognized
in other Reclassified
Beginning comprehensive to Ending
balance income (loss) profit or loss balance
Effective portion of cash flow hedges W (33,905) (333,820) 331,493 (36,232)
Income tax effects 8,205 8,769
Effective portion of cash flow hedges,
net of income taxes W (25,700) (27,463)
Changes
in fair value
recognized
in other Reclassified
Beginning comprehensive to Ending
balance income (loss) profit or loss balance
Effective portion of cash flow hedges W (54,292) 324,367 (319,928) (49,853)
Income tax effects 13,139 12,065
Effective portion of cash flow hedges,
net of income taxes W (41,153) (37,788)

(Unaudited)
September 30, 2016
31 (Continued)
14. Equity
(1) Regulatory reserve for loan losses
In accordance with the Article 11 of Regulation on Supervision of Specialized Credit Finance
Business mandated by the Financial Services Commission, the Group appropriates regulatory reserves
for loan losses which equal to the difference between allowance for loan losses estimated under K-IFRS
and allowance estimated based on regulatory risk grades of loans and receivables and minimum required
reserve ratio to each grade.
Details of regulatory reserve for loan losses as of September 30, 2016 and December 31, 2015 are
as follows:
(*1) Regulatory reserve for loan losses as of September 30, 2016 and December 31, 2015
represents the amount which reflects the expected release of regulatory reserve for loan losses to
appropriated regulatory reserve for loan losses at the beginning of the year.
Release of regulatory reserve for loan losses and profit for the period and earnings per share
adjusted with release of regulatory reserve for loan losses for the nine-month periods ended
September 30, 2016 and 2015 are as follows:
(*1) Release of regulatory reserve for loan losses represents excess reserves expected to be released
for the nine-month periods ended September 30, 2016 and 2015.
(*2) Profit for the period adjusted with release of regulatory reserve for losses is not prepared in
accordance with K-IFRS, but the amount reflects the expected release of regulatory reserve for loan
losses on a pre-tax basis on profit for the period.
2016 2015
Appropriated regulatory reserve for loan losses W 255,352 335,372
Expected release of regulatory reserve for loan losses (66,276) (80,020)
Regulatory reserve for loan losses (*1) W 189,076 255,352
(in millions of Korean won)
2016 2015
Profit for the period W 277,146 244,896
Add: release of regulatory reserve for loan losses (*1) 66,276 50,126
Profit for the period adjusted with release of
regulatory reserve for loan losses (*2) W 343,422 295,022
Basic and diluted earnings per share
adjusted with release of
regulatory reserve for loan losses (in won) W 3,458 2,971
Nine-month period ended
September 30

(Unaudited)
September 30, 2016
32 (Continued)
(2) Retained earnings
Details of retained earnings as of September 30, 2016 and December 31, 2015 are as follows:
(*1) Korean Commercial Act requires the Company to appropriate, as a legal reserve, an amount
equal to a minimum of 10% of annual cash dividends declared, until the reserve equals 50% of its issued
capital. The reserve is not available for the payment of cash dividends, but may be transferred to capital
stock or used to reduce accumulated deficit, if any.
2016 2015
Legal reserves:
Earned surplus reserve (*1) W 132,630 107,634
Discretionary reserves:
Regulatory reserve for loan losses 255,352 335,372
Reserve for electronic financial transactions 100 100
Reserve for business rationalization 74 74
255,526 335,546
Unappropriated retained earnings 2,520,792 2,185,899
W 2,908,948 2,629,079

(Unaudited)
September 30, 2016
33 (Continued)
15. Net Interest Income
Net interest income for the three-month and nine-month periods ended September 30, 2016 and
2015 are as follows:
(*1) Including amortization of unearned revenue for security deposits received for leases under the
effective interest method.
(*2) Including amortization of present value discounts under the effective interest method for the
security deposits paid for leased offices, amortization of present value discounts for customer deposits
received for leases and unwinding of provisions.
16. Net Fee Income
Net fee income for the three-month and nine-month periods ended September 30, 2016 and 2015
are as follows:
(in millions of Korean won) Three-month periods Nine-month periods
2016 2015 2016 2015
Interest income:
Cash and due from other financial institutions W 7,147 2,216 19,062 14,493
Available-for-sale securities 300 300 901 901
Loans receivable 232,665 249,814 690,776 792,641
Installment financial assets 121,147 109,876 357,490 310,275
Lease receivables (*1) 42,354 50,514 134,995 153,337
Other (*2) 171 170 865 1,193
403,784 412,890 1,204,089 1,272,840
Interest expense:
Borrowings 9,395 10,578 28,692 33,524
Bonds issued 131,184 139,811 408,564 443,098
Other (*2) 3,554 4,648 11,842 14,610
144,133 155,037 449,098 491,232
Net interest income W 259,651 257,853 754,991 781,608
2016 2015 2016 2015
Fee income:
Loans receivable W 7,930 9,970 24,465 33,146
Installment financial assets 3,755 3,329 11,533 9,669
Lease receivables 49,903 38,387 130,132 116,989
61,588 51,686 166,130 159,804
Fee expenses:
Lease expenses 18,006 20,484 61,865 60,040
Net fee income W 43,582 31,202 104,265 99,764

(Unaudited)
September 30, 2016
34 (Continued)
17. Other Operating Income and Expenses
Other operating income and expenses for the three-month and nine-month periods ended
18. General and Administrative Expenses
General and administrative expenses for the three-month and nine-month periods ended
2016 2015 2016 2015
Other operating income:
Gain on valuation of derivatives W (29,716) 197,270 9,431 339,405
Gain on derivatives transactions — 10,720 3,306 40,549
Gain on short-term financial investments (423) 2,198 2,879 3,048
Gain on purchased loan 9,009 12,182 32,526 38,724
Shared services income 4,288 5,382 19,961 19,734
Other fee and commission 15,326 14,434 46,498 41,607
Other 2,086 2,787 5,891 5,133
W 570 244,973 120,492 488,200
Other operating expenses:
Loss on valuation of derivatives W 262,178 18,824 307,255 34,226
Loss on derivatives transactions 33,309 164 36,975 25,799
Shared services expense 3,884 4,485 17,233 18,051
Other 35,299 6,250 46,777 18,208
W 334,670 29,723 408,240 96,284
2016 2015 2016 2015
Salaries W 55,451 57,453 156,671 175,851
Severance benefits 4,763 5,185 19,373 15,617
Employee benefits 8,696 9,060 27,655 26,754
Advertising 11,178 16,627 34,463 49,053
Sales promotion 24,044 18,470 54,554 55,029
Rents 10,605 11,739 34,657 35,289
Utilities 2,559 2,681 7,699 7,761
Communication 3,628 3,470 10,817 11,075
Travel and transportation 1,544 1,470 4,462 4,146
Professional and other service fees 23,337 17,304 64,195 49,852
Outsourcing service charges 7,622 9,243 25,514 26,291
Commissions and charges 3,255 5,959 13,423 17,640
Depreciation 5,801 4,158 16,679 17,624
Amortization 8,282 3,417 16,868 9,892
Other 12,152 13,351 37,304 37,771
W 182,917 179,587 524,334 539,645

(Unaudited)
September 30, 2016
35 (Continued)
19. Income Taxes
(1) Income tax expense
Income tax expense for the nine-month periods ended September 30, 2016 and 2015 are as follows:
(2) Deferred income taxes recognized directly to equity
Deferred income taxes recognized directly to equity for the nine-month periods ended
(3) Effective tax rate reconciliation
Income tax expense attributable to net income was W96,673 million and W87,440 million for the
nine-month periods ended September 30, 2016 and 2015, respectively, and differed from the amounts
computed by applying the statutory tax rate to profit before income taxes as a result of the following:
(in millions of Korean won) Nine-month periods ended September 30,
2016 2015
Current income tax expense W 89,498 78,229
Deferred income tax due to Changes in temporary differences (7,041) 15,747
Deferred income taxes recognized directly to equity 14,216 (6,536)
Income tax expense W 96,673 87,440
2016 2015
Beginning Ending Beginning Ending
balance balance Changes balance balance Changes
Unrealized gains and losses on
available-for-sale securities W (5,123) (4,254) 869 (2,168) (5,869) (3,701)
Share in other comprehensive
income of associates
under the equity method (687) 9,398 10,085 326 (2,996) (3,322)
Effective portion
of cash flow hedges 8,205 8,769 564 13,139 12,065 (1,074)
Remeasurements of
defined benefit plans 10,642 13,340 2,698 8,186 9,747 1,561
W 13,037 27,253 14,216 19,483 12,947 (6,536)
2016 2015
Profit before income taxes (A) W 373,820 332,336
Income taxes at statutory tax rates 90,002 79,963
Adjustments:
Non-deductible expense 106 110
Changes in estimates for tax provisions of the prior year 3,874 (139)
Others including tax credits and foreign subsidiaries 2,691 7,506
Income tax expense (B) W 96,673 87,440
Effective tax rate (B/A) 25.86% 26.31%

(Unaudited)
September 30, 2016
36 (Continued)
20. Earnings Per Share
(1) Basic earnings per share
Basic earnings per share attributable to common stock holders for the three-month and nine-month
periods ended September 30, 2016 and 2015 are as follows:
(2) Diluted earnings per share
There are no potential common stocks as of September 30, 2016 and 2015. Therefore, the diluted
earnings per share is equal to basic earnings per share for the three-month and nine-month periods ended
September 30, 2016 and 2015.
Three-month periods ended September 30, Nine-month periods ended September 30,
2016 2015 2016 2015
Profit for the period attributable
to common stock (in won) (A) W 49,665,942,113 73,336,362,936 277,146,110,897 244,895,446,243
Weighted average of number of
outstanding common stocks (B) 99,307,435 99,307,435 99,307,435 99,307,435
Basic earnings per share (in won) (A/B) W 500 738 2,791 2,466

(Unaudited)
September 30, 2016
37 (Continued)
21. Other Comprehensive Income
Other comprehensive income for the nine-month periods ended September 30, 2016 and 2015 are
as follows:
Changes
Reclassifi-
Beginning cation to Other Income tax Ending
balance profit or loss changes effects balance
Net change in unrealized
gains and losses on
available-for-sale securities W 16,051 (123) (3,467) 869 13,330
income (loss) of associates
under the equity method 2,152 — (41,674) 10,085 (29,437)
Net change in effective portion
of cash flow hedges (25,700) 331,493 (333,820) 564 (27,463)
translation adjustments (4,437) — (735) — (5,172)
Remeasurements of
defined benefit plans (33,333) — (11,152) 2,698 (41,787)
W (45,267) 331,370 (390,848) 14,216 (90,529)
Changes
Reclassifi-
Beginning cation to Other Income tax Ending
balance profit or loss changes effects balance
Net change in unrealized
gains and losses on
available-for-sale securities W 6,792 (120) 15,413 (3,701) 18,384
income (loss) of associates
under the equity method (*1) (1,021) — 13,727 (3,322) 9,384
Net change in effective portion
of cash flow hedges (41,153) (319,928) 324,367 (1,074) (37,788)
translation adjustments (3,573) — 789 — (2,784)
Remeasurements of
defined benefit plans (25,640) — (6,449) 1,561 (30,528)
W (64,595) (320,048) 347,847 (6,536) (43,332)

(Unaudited)
September 30, 2016
38 (Continued)
22. Supplemental Cash Flow Information
(1) Cash and cash equivalents
Details of cash and cash equivalents as of September 30, 2016 and December 31, 2015 are as
follows:
(*1) Other cash equivalents include demand deposits, certificate of deposits, time deposits,
commercial paper, repurchase agreements and other debt instruments with maturities of three months
or less from the acquisition date that are readily convertible to known amounts of cash which are subject
to an insignificant risk of changes in their fair value, and are used by the Group in the management of
its short-term commitments.
(*2) Other cash equivalents include restricted cash at reserve accounts of Autopia ABS trusts due
from other banks in the amount of W17,200 million and W13,400 million as of September 30, 2016
and December 31, 2015, respectively, for the Autopia asset securitization program.
2016 2015
Cash on hold W — 1
Ordinary deposits 215,567 267,735
Checking deposits 4,989 9,683
Other cash equivalents (*1)(*2) 724,238 585,445
W 944,794 862,864

(Unaudited)
September 30, 2016
39 (Continued)
(2) Cash generated from operations
Cash generated from operations for the nine-month periods ended September 30, 2016 and 2015
are as follows:
2016 2015
Profit for the period W 277,146 244,896
Adjustments:
Gain on sale of available-for-sale securities (1,055) (1,388)
Income on loans 49,207 41,034
Income on installment financial assets 39,188 34,362
Income on leases 32,769 33,729
Gain on foreign currency translation (307,255) (34,570)
Dividend income (3,828) (3,915)
Gain on valuation of derivatives (9,431) (339,405)
Gain on valuation of short-term financial investments (2,879) (3,048)
Net interest expenses 428,270 474,645
Lease expenses 267,139 237,067
Provision for loan losses 198,303 218,273
Loss on foreign currency translation 10,795 339,531
Severance benefits 14,232 13,210
Long-term employee benefits 631 974
Depreciation 16,679 17,624
Amortization 16,868 9,892
Loss on valuation of derivatives 307,255 34,226
Provisions (release of provisions) 26,569 717

(Unaudited)
September 30, 2016
40 (Continued)
2016 2015
Share in net income of associates under the equity method (46,342) (28,825)
Gain on sale of property and equipment (384) (1,282)
Reversal of impairment loss on intangible assets (54) —
Loss on disposal of Investment associates 299 —
Loss on sale of property and equipment 135 477
Income tax expense 96,673 87,440
1,133,784 1,130,768
Changes in operating assets and liabilities:
Decrease (increase) in due from banks (2,795) 33,709
Decrease (increase) in short-term financial investments (202,244) 466,513
Increase in available-for-sale securities (13,021) 1,192
Decrease in loans receivable (116,627) 742,356
Increase in installment financial assets (360,564) (1,619,883)
Increase in finance lease receivables (246,974) (320,616)
Decrease in cancelled lease receivables 8,255 11,200
Increase in operating lease assets (464,511) (436,857)
Decrease in cancelled lease assets 343,852 323,102
Decrease in non-trade receivables 3,639 9,078
Decrease in accrued revenues 5,336 6,588
Increase in advance payments 107,478 (21,828)
Increase in prepaid expenses (1,967) (28,054)
Decrease (increase) in derivatives, net 52,899 (139,510)
Decrease in non-trade payables (60,282) (288)
Increase (decrease) in accrued expenses (1,092) (64)
Decrease in unearned revenue (14,536) 90
Increase (decrease) in withholdings 9,890 9,039
Decrease in deposits received (80,890) (65,780)
Severance payments, net (1,042) (2,227)
Transfer of severance benefits from (to) related parties, net 183 320
Decrease in long-term employee benefits (420) (398)
Increase (decrease) in other liabilities (20) 7,462
(1,035,453) (1,024,856)
W 375,477 350,808

(Unaudited)
September 30, 2016
41 (Continued)
23. Commitments and Contingencies
(1) Line of credit commitments
As of September 30, 2016, the Group has line-of-credit commitments from Shinhan Bank and KEB
Hana Bank with aggregated limits in the amount of W48,500 million.
(2) Credit Facility Agreement
As of September 30, 2016, the Group has revolving credit facility agreements amounted to USD
250 million, JPY 60,000 million , EUR 50 million and W2,100,000 million with Kookmin Bank and 26
other financial institutions for credit lines.
(3) Guarantees
Details of guarantees provided to the Group as of September 30, 2016 and December 31, 2015 are
as follows:
(*1) The amounts represent the guaranteed unpaid principals as of September 30, 2016 and
December 31, 2015 as defined under the joint liability agreement.
The Group has residual value guarantee insurance policies with KB Insurance Co., Ltd. and two
other insurance carriers which cover losses resulting from defaults in mortgage loans where unpaid
amounts exceed the recoverable amounts from the collateral of the loans and cover losses resulting from
sales of off-lease vehicles returned where the expected residual values exceed the recoverable amounts
at the end of the lease terms. Loans and leases insured by the policies and residual value guaranteed by
the insurance policies as of September 30, 2016 and December 31, 2015 are as follows:
Guarantor Details 2016 2015
Hyundai Motor Joint liabilities on finance lease
Company receivables (*1) W — 1,568
Seoul Guarantee Guarantee for debt collection
Insurance Co., Ltd. deposit and others 61,503 80,202
2016 2015
Loans and leases insured W 928,649 967,695
Residual value guaranteed by the insurance policies 184,120 225,313

(Unaudited)
September 30, 2016
42 (Continued)
(4) Pending litigations
Pending litigations include thirteen cases with aggregated amount of W972 million where the
Group is the defendant, five cases with aggregated amount of W3,026 million where the Group is the
plaintiff, and litigations against a number of debtors to collect receivables as of September 30, 2016.
The Group recognized provisions of W283 million related to one legal suit (Note 12).
Management has reviewed legal claims against the Group with outside legal counsels and has taken
into consideration the views of such counsel as to the outcome of the claims. In management’s opinion,
the final disposition of all such claims will not have a material adverse effect on the Group’s financial
position or results of its operations.
(5) Receivables transfer agreement
The Group entered into an agreement with Hyundai Card Co., Ltd., Hyundai Commercial Co., Ltd.,
and Hyundai Life Insurance Co., Ltd., to purchase certain delinquent receivables on a regular basis at
amount agreed with the transferors.

(Unaudited)
September 30, 2016
43 (Continued)
24. Related Party Transactions
(1) Relationships between parents and subsidiaries
The parent company is Hyundai Motor Company. Related parties include associates, joint ventures,
post-employment benefit plans, members of key management personnel and entities which the Group
controls directly or indirectly, has joint control or significant influence over them.
(2) Related parties
Related parties that have transactions, and receivables and payables with the Group as of
September 30, 2016 is as follows:
Type Company
The Parent Hyundai Motor Company
Associates Korea Credit Bureau, and Hyundai Capital Germany GmbH
Others Kia Motors Corp., Hyundai Card Co., Ltd., Hyundai Commercial Inc.,
Hyundai Life Insurance Co., Ltd., Hyundai Glovis Co., Ltd., Hyundai Autoever Corp.,
Hyundai Steel co., Ltd., Hyundai Construction & Engineering Co., Ltd.,
Hyundai Capital America, and 58 others

(Unaudited)
September 30, 2016
44 (Continued)
(3) Transactions with related parties
Transactions with related parties are occurred in the normal course of business, and the terms and
conditions include normal settlement terms.
Significant transactions, which occurred in the normal course of business with related companies
for the nine-month periods ended September 30, 2016 and 2015 are as follows:
(*1) Hi Network, Inc. was excluded from the related party in the current period upon disposal, and
the transaction information was produced before the sale.
(in millions of Korean won) Nine-month periods ended September 30, 2016
Operating Operating Non-operating Other
revenue expenses income Sales Purchases
The Parent
Hyundai Motor Company W 49,030 1,018 — — 662,618
Associates
Korea Credit Bureau — 116 — — —
Hi Network, Inc. (*1) — 328 195 — —
Hyundai Capital Germany GmbH 292 — — — —
292 444 195 — —
Other related parties
Kia Motors Corp. 37,383 166 — — 204,430
Hyundai Card Co., Ltd. 29,115 15,617 1,874 — 110,275
Hyundai Commercial Inc. 957 1,932 567 — 73,805
Hyundai Autoever Corp. 226 33,091 — — 18,111
Hyundai Glovis Co., Ltd. 385 3,789 — 44,320 76
Hyundai Capital America 24,199 — — — —
Hyundai Life Insurance Co., Ltd. 127 7,922 93 — 4,018
Others 17,246 7,844 6 — 7,447
109,638 70,361 2,540 44,320 418,162
W 158,960 71,823 2,735 44,320 1,080,780
Operating Operating Non-operating Other
revenue expenses income Sales Purchases
The Parent
Hyundai Motor Company W 27,814 1,136 — — 644,640
Associates
Hi Network, Inc. — 605 — — —
Korea Credit Bureau 1 108 — — —
Hyundai Capital Germany GmbH 725 — — — —
Beijing Hyundai Auto Finance Co., Ltd. 185 — — — —
911 713 — — —
Kia Motors Corp. 24,550 277 — — 238,399
Hyundai Card Co., Ltd. 34,372 15,721 120 — 104,546
Hyundai Autoever Corp. 107 32,201 — — 24,956
Hyundai Glovis Co., Ltd. 225 2,351 — 26,361 —
Hyundai Capital America 20,131 — — — —
Hyundai Life Insurance Co., Ltd. 312 8,290 — — 2,836
Others 18,948 15,819 — — 34,506
98,645 74,659 120 26,361 405,243
W 127,370 76,508 120 26,361 1,049,883

(Unaudited)
September 30, 2016
45 (Continued)
Receivables and payables with related parties as of September 30, 2016 and December 31, 2015 are as
follows:
(*1) Other assets include plan assets of W75,583 million and W73,086 million as of September 30,
2016 and December 31, 2015, respectively, related to the Group’s defined benefit plan.
Lease Other Other
receivables assets liabilities
The Parent
Hyundai Motor Company W 117 5,900 8,437
Hyundai Card Co., Ltd. 947 1,482 85,054
Hyundai Life Insurance Co., Ltd. (*1) 302 81,645 63
Hyundai Capital America — 22,850 —
Kia Motors Corp. — 4,614 17,468
Hyundai Construction & Engineering Co., Ltd., 5,320 — —
Hyundai Glovis Co., Ltd. 749 805 —
Hyundai Steel co., Ltd., 5,130 177 —
Others 10,623 1,121 439
23,071 112,694 103,024
W 23,188 118,594 111,461
September 30, 2016
Lease Other Other
receivables assets liabilities
The Parent
Hyundai Motor Company W 360 4,767 27,845
Associates
Hi Network, Inc. — — 1,477
Beijing Hyundai Auto Finance Co., Ltd. — 133 —
Hyundai Capital Germany GmbH — 75 —
— 208 1,477
Other related partiies
Hyundai Card Co., Ltd. 866 1,286 111,830
Hyundai Life Insurance Co., Ltd. (*1) 348 81,086 361
Kia Motors Corp. — 3,840 38,439
Hyundai Capital America — 28,515 —
Hyundai Steel Company 5,703 166 —
Hyundai Glovis Co., Ltd. 514 2,199 —
Hyundai Autoever Corp. — — 1,827
Others 6,031 743 488
13,462 117,835 152,945
W 13,822 122,810 182,267
December 31, 2015

(Unaudited)
September 30, 2016
46 (Continued)
(4) Key management compensation
Compensation to key management for the nine-month periods ended September 30, 2016 and 2015
are as follows:
The key management above consists of directors (including non-permanent directors), who have
significant authority and responsibilities for planning, operating and controlling the Group’s activities.
2016 2015
Short-term employee benefits W 7,552 7,238
Severance benefits 1,324 1,436
Other long-term employee benefits 96 10

(Unaudited)
September 30, 2016
47 (Continued)
25. Transfer of Financial Assets
The Group issued senior and subordinated asset-backed securities collateralized by loans
receivable, installment financial assets, and lease receivables; and the investors in the securitized notes
have recourse only to the cash flows from the transferred financial assets.
Details of financial assets transferred that are not derecognized as of September 30, 2016 and
(*1) Excluding derivatives for hedges. The Group enters into currency swaps contracts principally
to manage exposures to fluctuations in future cash flows due to interest rate risk and foreign exchange
risk of foreign currency denominated asset-backed securities issued.
2016 2015
Carrying amount of assets:
Loans receivable W 1,508,559 926,330
Installment financial assets 4,095,643 3,368,520
Lease receivables 163,090 230,229
5,767,292 4,525,079
Carrying amount of associated liabilities (*1): (3,570,235) (3,180,053)
For those liabilities that have recourse
only to the transferred financial assets:
Fair value of assets 5,839,693 4,544,789
Fair value of associated liabilities (*1) (3,591,183) (3,196,858)
Net position W 2,248,510 1,347,931

(Unaudited)
September 30, 2016
48 (Continued)
26. Offsetting of Financial Assets and Liabilities
The Group enters into derivative transactions under International Swaps and Derivatives
Association (ISDA) master netting agreements. In general, under such agreements the amounts owed
by each counterparty on a single day in respect of all transactions outstanding in the same currency are
aggregated into a single net amount that is payable by one party to the other. In certain circumstances –
e.g. when a credit event such as a default occurs – all outstanding transactions under the agreement are
terminated, the termination value is assessed and only a single net amount is payable in settlement of
all transactions.
The ISDA agreements do not meet the criteria for offsetting in the statement of financial position.
This is because the Group does not have any currently legally enforceable right to offset recognized
amounts, because the right to offset is enforceable only on the occurrence of future events such as a
default on the bank loans or other credit events.
The following table sets out the carrying amounts of recognized financial instruments that are
subject to the above agreements as of September 30, 2016 and December 31, 2015:
Gross
amounts of Net
recognized amounts of
financial financial
Gross assets assets
amounts of /liabilities /liabilities Related amounts not offset
recognized offset in the in the in the statement of
financial statement of statement of financial position
assets financial financial Financial Cash collateral Net
/liabilities position position instruments received amounts
Financial assets:
Derivative assets W 53,998 — 53,998 52,188 — 1,810
Financial liabilities:
Derivative liabilities 368,128 — 368,128 52,188 — 315,940
Gross
amounts of Net
recognized amounts of
financial financial
Gross assets assets
amounts of /liabilities /liabilities Related amounts not offset
recognized offset in the in the in the statement of
financial statement of statement of financial position
assets financial financial Financial Cash collateral Net
/liabilities position position instruments received amounts
Financial assets:
Derivative assets W 179,154 — 179,154 93,361 — 85,793
Derivative liabilities 140,234 — 140,234 93,361 — 46,873

(Unaudited)
September 30, 2016
49 (Continued)
27. Fair Value Measurements of Financial Instruments
(1) Fair value of financial instruments
The fair values of financial instruments, together with carrying amounts shown in the statements
of financial position, as of September 30, 2016 and December 31, 2015 are as follows:
(*1) Excluding liabilities for taxes and dues
The following methods and assumptions were used to estimate the fair value of each class of
financial instruments:
Cash and cash equivalents, and Due from banks
The carrying amount and the fair value of cash are identical. As cash, deposits, and other cash
equivalent instruments can be easily converted into cash, the carrying amount, at face value or cost plus
accrued interest, approximates the fair value due to short maturity of these instruments.
Short-term financial investments
In case that the market of a financial instrument is active, fair value is established at the close
quoted price as of the last day for the reporting period. The fair value of investments in money market
funds is determined by the sum of acquisition cost and accrued interest.
(in millions of Korean won) September 30, 2016 December 31, 2015
Carrying Fair Carrying Fair
amount value amount value
Financial assets:
Cash and due from
other financial institutions W 1,913,913 1,913,913 1,624,065 1,624,065
Available-for-sale securities 88,034 88,034 77,550 77,550
Loans receivable 8,385,461 8,579,145 8,492,110 8,410,462
Installment financial assets 9,159,448 9,366,673 8,861,006 8,869,681
Lease receivables 2,472,151 2,605,248 2,630,653 2,625,396
Derivative assets 53,998 53,998 179,154 179,154
Non-trade receivables 117,961 117,961 120,470 120,470
Accrued revenues 78,484 78,484 89,788 89,788
Leasehold deposits 21,358 21,475 22,180 21,326
W 22,290,808 22,824,931 22,096,976 22,017,892
Borrowings W 1,506,491 1,510,161 1,763,872 1,768,844
Bonds issued 18,138,468 18,309,558 17,637,558 17,952,586
Derivative liabilities 368,128 368,128 140,234 140,234
Non-trade payables (*1) 251,503 251,503 309,825 309,825
Accrued expenses 152,844 152,844 175,132 175,132
Withholdings (*1) 45,234 45,234 34,403 34,403
Deposits received 477,485 482,505 546,574 526,969
Other liabilities 21 21 40 40
W 20,940,174 21,119,954 20,607,638 20,908,033

(Unaudited)
September 30, 2016
50 (Continued)
When available, the Group measures the fair value of a security using quoted prices in an active
market. If a market for a security is not active, the Group establishes fair value by using a highly
accredited independent valuation agency. The independent valuation agency utilizes various valuation
technique, which include the discounted cash flow model, the imputed market value model, the free
cash flow to equity (FCFE) model, the dividend discount model, the risk adjusted discount rate method,
and the net asset valuation approach. Depending on the characteristic and nature of the instrument, the
fair value is measured by using at least one valuation technique.
Loans receivable, installment financial assets, and lease receivables
The fair value is determined by using the discounted cash flow model that incorporate parameter
inputs for expected maturity rate/prepayment rate, as appropriate. As the discount rate used for
determining the fair value incorporates the time value of money and credit risk, the Group’s discount
rate system is formed to consider the market risk and the credit risk.
Derivative financial instruments
The fair value of interest rate swaps and currency swaps are determined by using the discounted
cash flow model based on a current interest rate yield curve appropriate for market interest rate as of
the reporting date. The fair value of each derivative is measured by offsetting and discounting the
expected cash flows of the swap at appropriate discount rate which is based on forward interest rate and
exchange rate that is generated by using above method. The fair value of currency forward is measured
principally with the forward exchange rate which is quoted in the market at the end of reporting period
considering the maturity of the currency forward. The discount rate used in measuring the fair value of
currency forward is derived from CRS rate which is determined by using the spot exchange rate and the
forward exchange rate based on the interest rate parity theory.
Borrowings
The fair value of borrowings is determined by discounting the expected future cash flows at an
appropriate discount rate.
Bonds issued
The fair value of bonds is determined by using the discounted cash flow method. The fair value of
bonds denominated in won and bonds denominated in foreign currencies are quoted from a reliable
independent valuation service provider.
Other financial assets and liabilities
The fair value of other financial assets and other financial liabilities is determined by using the
discounted cash flow method. For certain other financial assets and liabilities, carrying amount
approximates fair value due to their short term nature and generally negligible credit risk. These
instruments include nontrade receivables, accrued interest receivable, nontrade payables, and others.

(Unaudited)
September 30, 2016
51 (Continued)
(2) Fair value hierarchy
(a) Financial assets and liabilities measured at fair value
The fair value hierarchy of financial assets and liabilities measured at fair value in the statement of
financial position as of September 30, 2016 and December 31, 2015 are as follows:
(*1) Equity securities for which quoted prices in active markets are not available and fair value of
those instruments cannot be estimated reliably are measured at cost and classified as Level 3 instruments.
These instruments are amounted to W166 million and W169 million as of September 30, 2016 and
December 31, 2015, respectively.
Carrying Fair Fair value hierarchy
amount value Level 1 Level 2 Level 3 (*1)
Financial assets measured at fair value:
Short-term financial investments W 963,828 963,828 — 963,828 —
Available-for-sale securities 88,034 88,034 20,088 31,982 35,964
Derivative assets
Designated as hedging instruments
for cash flow hedges 53,998 53,998 — 53,998 —
W 1,105,860 1,105,860 20,088 1,049,808 35,964
Financial liabilities measured at fair value:
Derivative liabilities
for cash flow hedges W 368,128 368,128 — 368,128 —
Carrying Fair Fair value hierarchy
amount value Level 1 Level 2 Level 3 (*1)
Financial assets measured at fair value:
Short-term financial investments W 758,705 758,705 — 758,705 —
Available-for-sale securities 77,550 77,550 24,694 33,693 19,163
Derivative assets
for cash flow hedges 179,154 179,154 — 179,154 —
W 1,015,409 1,015,409 24,694 971,552 19,163
Financial liabilities measured at fair value:
for cash flow hedges W 140,234 140,234 — 140,234 —

(Unaudited)
September 30, 2016
52 (Continued)
The valuation techniques and inputs for measuring the fair value of financial assets and liabilities
measured at fair value in the statement of financial position and classified as Level 2 as of September 30,
2016 and December 31, 2015 are as follows:
The following tables present a roll-forward of the fair value of Level 3 instruments for the nine-
month periods ended September 30, 2016 and 2015:
The valuation techniques and quantitative information of significant unobserved inputs for
financial assets and liabilities measured at fair value in the statement of financial position and classified
as Level 3 as of September 30, 2016 and December 31, 2015 are as follows:
(in millions of Korean won) Fair value
September 30, December 31, Valuation
2016 2015 technique Inputs
Financial assets measured
at fair value:
Short-term financial
investments W 963,828 758,705 DCF Model Discount rate, short-term interest rate, volatility and others
Available-for-sale securities 31,982 33,693 DCF Model Discount rate
Derivative assets
Designated as hedging
instruments
for cash flow hedges 53,998 179,154 DCF Model Discount rate, short-term interest rate, volatility, foreign exchange rate and others
W 1,049,808 971,552
Financial liabilities measured
at fair value:
Designated as hedging
instruments
for cash flow hedges W 368,128 140,234 DCF Model Discount rate, short-term interest rate, volatility, foreign exchange rate and others
(in millions of Korean won) Available-for-sale securities
Nine-month periods ended September 30,
2016 2015
Purchase 15,574 —
Gains (losses) recognized as other comprehensive income (loss) 1,650 (1,207)
Redemption of principal (423) (318)
Estimated
range of
Valuation Unobservable unobservable
Fair value technique Inputs inputs inputs Impacts on fair value
Financial assets
measured at fair value:
Equity securities W 13,065 NAV Book value of Book value of
model net assets net assets
Market BPS, PBR BPS, PBR
approach
Beneficiary certificates 22,733 Net asset Credit rating and Credit rating BBB Fair value is likely to increase
model discount rate Discount rate 7.40% as the discount rate declines
while credit rating of loan receivables rises.
W 35,798

(Unaudited)
September 30, 2016
53 (Continued)
Sensitivity analysis of financial instruments is performed to measure favorable and unfavorable
changes in the fair value of financial instruments which are affected by the unobservable inputs, using
a statistical technique. When the fair value is affected by more than two input parameters, the amounts
represent the most favorable or most unfavorable. For fair value measurements classified as Level 3,
the sensitivity analysis on change of unobservable inputs as of September 30, 2016 and December 31,
2015 is as follows:
(*1) For equity securities, the fair value is estimated at the average of appraisal value using the
valuation technique based on the net asset value approach (NAV model) and the market approach;
sensitivity analysis is not available for the equity securities and excluded from the disclosure above.
For beneficiary certificates, the changes in fair value are calculated by increasing and decreasing
discount rate (-1%~1%).
Estimated
range of
Valuation Unobservable unobservable
Fair value technique Inputs inputs inputs Impacts on fair value
Financial assets
measured at fair value:
Equity securities W 11,487 NAV Book value of Book value of
model net assets net assets
Market BPS, PBR BPS, PBR
approach
7,507 Net asset Credit rating and Credit rating BBB Fair value is likely to increase
Beneficiary certificates model discount rate Discount rate 7.40% as the discount rate declines
while credit rating of loan receivables rises.
W 18,994
(in millions of Korean won) Other comprehensive income (loss)
September 30, 2016 December 31, 2015
Favorable Unfavorable Favorable Unfavorable
change (*1) change (*1) change (*1) change (*1)
Available-for-sale securities W 158 (160) 138 (162)

캐피탈 2016년 3분기 검토보고서 en

캐피탈 2016년 3분기 검토보고서 en

Recommended

Recommended

More Related Content

What's hot

What's hot (20)

Viewers also liked

Viewers also liked (9)

Similar to 캐피탈 2016년 3분기 검토보고서 en

Similar to 캐피탈 2016년 3분기 검토보고서 en (20)

More from Hyundai Finance

More from Hyundai Finance (20)

Recently uploaded

Recently uploaded (20)

캐피탈 2016년 3분기 검토보고서 en