카3영

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

Hyundai Card Co., Ltd. and Subsidiaries
Index
September 30, 2017 and 2016
Page(s)
Report on Review of Interim Financial Statements………………………..……… 1 ~ 2
Consolidated Interim Financial Statements
Consolidated Interim Statements of Financial Position………………………………. 3 ~ 4
Consolidated Interim Statements of Comprehensive Income…….…………………. 5
Consolidated Interim Statements of Changes in Equity........................................... 6
Consolidated Interim Statements of Cash Flows.........................................…......... 7
Notes to the Consolidated Interim Financial Statements..........................…............ 8 ~ 47

Report on Review of Interim Financial Statements
(English Translation of a Report Originally Issued in Korean)
To the Board of Directors and Shareholders of
Hyundai Card Co., Ltd.
Reviewed Financial Statements
We have reviewed the accompanying consolidated interim financial statements of Hyundai Card Co., Ltd.
and its subsidiaries (collectively referred to as the “Group”). These financial statements consist of the
consolidated interim statement of financial position of the Group as at September 30, 2017, and the
related consolidated interim statements of comprehensive income for the three-month and nine-month
periods ended September 30, 2017, and consolidated interim statements of changes in equity and cash
flows for the nine-month period ended September 30, 2017, and a summary of significant accounting
policies and other explanatory notes, expressed in Korean won.
Management’s Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these consolidated interim
financial statements in accordance with International Financial Reporting Standards as adopted by the
Republic of Korea (Korean IFRS) 1034 Interim Financial Reporting, and for such internal control as
management determines is necessary to enable the preparation of consolidated interim financial
statements that are free from material misstatement, whether due to fraud or error.
Auditor’s Responsibility
Our responsibility is to issue a report on these consolidated interim financial statements based on our
review.
We conducted our review in accordance with quarterly or semi-annual review standards established by
the Securities and Futures Commission of the Republic of Korea. A review of consolidated interim
financial information consists of making inquiries, primarily of persons responsible for financial and
accounting matters, and applying analytical and other review procedures. A review is substantially less in
scope than an audit conducted in accordance with Korean Standards on Auditing and consequently does
not enable us to obtain assurance that we would become aware of all significant matters that might be
identified in an audit. Accordingly, we do not express an audit opinion.

2
Conclusion
Based on our review, nothing has come to our attention that causes us to believe the accompanying
consolidated interim financial statements are not presented fairly, in all material respects, in accordance
with Korean IFRS 1034 Interim Financial Reporting.
Other Matters
The consolidated statement of comprehensive income for the three-month and nine-month periods ended
September 30, 2016, and the consolidated statements of changes in equity and cash flows for the nine-
month period ended September 30, 2016, presented herein for comparative purposes, were reviewed by
Deloitte Anjin LLC whose report dated November 14, 2016. Based on their review, nothing has come to
their attention that causes them to believe the accompanying financial statements do not present fairly, in
all material respects, in accordance with Korean IFRS 1034 Interim Financial Reporting.
The consolidated financial statements of the Group for the year ended December 31, 2016, were audited
by Deloitte Anjin LLC who expressed an unqualified opinion on those statements on March 9, 2017.
These financial statements are not included in this review report. The consolidated statement of financial
position as at December 31, 2016, presented herein for comparative purposes, is consistent, in all
material respects, with the above audited statement of financial position as at December 31, 2016.
Review standards and their application in practice vary among countries. The procedures and practices
used in the Republic of Korea to review such financial statements may differ from those generally
accepted and applied in other countries.
Seoul, Korea
November 14, 2017
This report is effective as of November 14, 2017, the review report date. Certain subsequent events
or circumstances, which may occur between the review report date and the time of reading this
report, could have a material impact on the accompanying consolidated interim financial statements
and notes thereto. Accordingly, the readers of the review report should understand that there is a
possibility that the above review report may have to be revised to reflect the impact of such
subsequent events or circumstances, if any.

Consolidated Interim Statements of Financial Position
September 30, 2017 and December 31, 2016
(in Korean won) Notes
Assets
Cash and deposits 4,22,27
Cash and cash equivalents ￦ 1,252,472,743,995 ￦ 544,794,485,545
Deposits 56,324,500,000 49,224,500,000
1,308,797,243,995 594,018,985,545
Securities 5,27
Short-term trading financial assets 883,278,993,595 934,410,761,140
Available-for-sale financial assets 1,766,969,764 1,766,969,764
885,045,963,359 936,177,730,904
Card assets 6,7,24,25,27
Card receivables 8,364,106,790,901 8,269,534,732,550
Provision for impairment (87,284,144,347) (85,886,699,270)
Cash advances 822,681,191,926 854,784,203,966
Card loans 3,328,414,439,975 3,219,317,692,667
12,224,360,193,246 12,059,898,736,615
Property and equipment 8,24
Land 141,135,593,407 141,135,593,407
Buildings 152,233,836,008 126,704,995,407
Accumulated depreciation (17,419,808,123) (14,726,748,872)
Vehicles 2,514,088,391 2,514,088,391
Accumulated depreciation (578,322,222) (439,366,875)
Fixtures and equipment 212,029,319,254 224,364,093,027
Accumulated depreciation (134,119,921,739) (151,356,926,811)
Construction in progress 514,925,467 35,075,731,257
356,309,710,443 363,271,458,931
Other assets
Other receivables 27 88,287,357,883 71,147,336,413
Provision for impairment 7 (454,367,016) (684,795,942)
Accrued revenue 27 45,931,055,379 48,787,858,968
Provision for impairment 7 (1,352,594,814) (1,452,647,490)
Advance payments 40,008,035,636 34,568,010,198
Provision for impairment 7 (227,990,823) (1,299,169,542)
Prepaid expenses 126,917,805,650 99,535,753,224
Intangible assets 9 120,583,999,982 124,686,171,662
Derivative assets 13,26,27 6,523,596,510 81,927,179,715
Deferred tax assets 21 147,580,299,509 145,455,115,389
Guarantee deposits provided 4,27 33,283,625,598 34,099,670,256
Others 8,771,387,941 6,849,544,062
615,852,211,435 643,620,026,913
Total assets ￦ 15,390,365,322,478 ￦ 14,596,986,938,908
December 31, 2016September 30, 2017
(Unaudited)
3

Consolidated Interim Statements of Financial Position
September 30, 2017 and December 31, 2016
(in Korean won)
Liabilities
Borrowings 10,23,27
Borrowings ￦ 2,610,000,000,000 ￦ 1,515,000,000,000
Debentures 7,953,278,921,852 8,432,870,774,644
10,563,278,921,852 9,947,870,774,644
Other liabilities
Other payables 24,27 1,159,430,199,964 1,141,620,489,429
Accrued expenses 27 184,200,872,578 230,145,349,425
Unearned revenue 349,280,580,252 333,051,158,594
Withholdings 27 90,677,828,480 83,120,821,122
Derivative liabilities 13,26,27 17,088,729,599 8,875,678,753
Current tax liabilities 48,029,928,163 34,343,771,456
Net employee benefit liabilities 11 25,646,116,962 14,105,725,451
Guarantee deposits received 27 9,128,019,703 9,471,527,500
Provisions 12,23 97,599,619,740 100,572,537,167
1,981,081,895,441 1,955,307,058,897
Total liabilities 12,544,360,817,293 11,903,177,833,541
Equity
Share capital 802,326,430,000 802,326,430,000
Reserves 57,704,443,955 57,704,443,955
Accumulated other comprehensive income 15 (20,915,064,195) (28,573,135,455)
Retained earnings 14,16 2,006,888,695,425 1,862,351,366,867
Total equity 2,846,004,505,185 2,693,809,105,367
Total liabilities and equity ￦ 15,390,365,322,478 ￦ 14,596,986,938,908
(Unaudited)
September 30, 2017 December 31, 2016
The above consolidated interim statements of financial position should be read in conjunction with the accompanying notes.
4

Consolidated Interim Statements of Comprehensive Income
Three-Month and Nine-Month Periods Ended September 30, 2017 and 2016
Operating income
Card income 17,24 678,662,551,299 2,030,948,753,541 657,671,616,648 1,961,857,425,039
Interest income 18 5,460,112,861 15,564,486,194 5,344,980,067 15,351,182,004
Gain on valuation and disposal of securities (87,876,215) 1,195,474,848 636,442,873 2,680,764,726
Dividend income - 162,417,126 131,003,957 297,057,201
Other operating income 19,24 8,350,043,935 165,955,837,309 56,403,445,396 88,720,715,645
692,384,831,880 2,213,826,969,018 720,187,488,941 2,068,907,144,615
Operating expenses
Card expenses 17,24 325,064,550,476 1,000,049,123,857 301,616,953,925 910,551,613,220
Interest expenses 18 60,365,777,115 181,447,230,492 63,511,053,153 194,522,512,627
Selling and administrative expenses 20,24 174,606,867,452 517,821,282,505 161,453,713,022 495,527,801,831
Securitization expenses 149,124,689 487,126,947 126,274,275 361,558,035
Impairment losses and losses on disposal of receivables 7 59,663,337,587 171,828,321,794 54,650,914,331 175,545,628,613
Increase in provision for unused credit limits 12 611,581,474 2,649,633,961 1,176,118,238 3,899,422,800
Other operating expenses 19,24 4,488,734,315 99,250,762,967 62,141,325,291 87,325,384,719
624,949,973,108 1,973,533,482,523 644,676,352,235 1,867,733,921,845
Operating profit 67,434,858,772 240,293,486,495 75,511,136,706 201,173,222,770
Non-operating income
Gain on disposal of property and equipment, and intangible assets 7,000 35,079,560 211,979 164,149,593
Rental income 869,413,302 2,589,738,570 1,050,566,957 2,056,639,558
Miscellaneous gain 152,176,150 2,138,625,904 71,526,147 215,024,561
1,021,596,452 4,763,444,034 1,122,305,083 2,435,813,712
Non-operating expenses
Loss on disposal of property and equipment, and intangible assets 54,528,149 803,921,201 616,868,325 1,693,028,438
Donations 218,193,400 4,248,813,341 386,365 191,154,039
Miscellaneous loss 39,932,151 39,932,151 - -
312,653,700 5,092,666,693 617,254,690 1,884,182,477
Profit before income tax expense 68,143,801,524 239,964,263,836 76,016,187,099 201,724,854,005
Income tax expense 21 17,022,348,508 58,038,523,640 17,310,103,960 48,140,446,542
Profit for the period 51,121,453,016 181,925,740,196 58,706,083,139 153,584,407,463
Other comprehensive income 15
Items that will not be reclassified to profit or loss
Remeasurements of net defined benefit liabilities 857,169,954 (202,471,035) (4,741,023,771) (5,605,819,194)
Items that may be subsequently reclassified to profit or loss
Cash flow hedges 4,445,947,986 7,860,542,295 16,784,936,751 11,029,539,283
5,303,117,940 7,658,071,260 12,043,912,980 5,423,720,089
Total comprehensive income for the period 56,424,570,956 189,583,811,456 70,749,996,119 159,008,127,552
Earnings per share 28
Basic and diluted earnings per share 319 1,134 366 957
Three months Nine months
Period Ended September 30
2017
(Unaudited)
2016
(Unaudited)
Three months Nine months
The above consolidated interim statements of comprehensive income should be read in conjunction with the accompanying notes.
5

Consolidated Interim Statements of Changes in Equity
Nine-Month Periods Ended September 30, 2017 and 2016
(in Korean won)
Balance at January 1, 2016 802,326,430,000 45,399,364,539 12,305,079,416 (38,384,103,955) 1,672,385,338,125 2,494,032,108,125
Total comprehensive income
Profit for the period - - - - 153,584,407,463 153,584,407,463
Other comprehensive income
Remeasurements of net defined benefit liabilities - - - (5,605,819,194) - (5,605,819,194)
Cash flow hedges - - - 11,029,539,283 - 11,029,539,283
Balance at September 30, 2016 (Unaudited) 802,326,430,000 45,399,364,539 12,305,079,416 (32,960,383,866) 1,825,969,745,588 2,653,040,235,677
Balance at January 1, 2017 802,326,430,000 45,399,364,539 12,305,079,416 (28,573,135,455) 1,862,351,366,867 2,693,809,105,367
Dividends paid - - - - (37,388,411,638) (37,388,411,638)
Total comprehensive income
Profit for the period - - - - 181,925,740,196 181,925,740,196
Other comprehensive income
Remeasurements of net defined benefit liabilities - - - (202,471,035) - (202,471,035)
Cash flow hedges - - - 7,860,542,295 - 7,860,542,295
Balance at September 30, 2017 (Unaudited) 802,326,430,000 45,399,364,539 12,305,079,416 (20,915,064,195) 2,006,888,695,425 2,846,004,505,185
Total
Other
reserves earnings
Retainedother
comprehensive incomecapital
Share
premium
Share
AccumulatedReserves
The above consolidated interim statements of changes in equity should be read in conjunction with the accompanying notes.
6

Consolidated Interim Statements of Cash Flows
Nine-Month Periods Ended September 30, 2017 and 2016
Cash flows from operating activities
Cash generated from operating activities 22 302,863,998,030 278,892,750,294
Interests received 14,816,039,270 15,109,942,218
Interests paid (212,539,867,177) (233,470,197,805)
Dividends received 162,417,126 297,057,201
Income taxes paid (48,878,867,895) (47,551,624,470)
Net cash inflow from operating activities 56,423,719,354 13,277,927,438
Cash flows from investing activities
Disposal of available-for-sale financial assets 22,439,400 37,146,200
Disposal of property and equipment 121,265,498 269,685,852
Disposal of intangible assets 19,534,000 585,000,000
Acquisition of property and equipment (23,742,538,633) (33,011,809,062)
Acquisition of intangible assets (27,054,040,453) (13,577,392,691)
Net cash outflow from investing activities (50,633,340,188) (45,697,369,701)
Cash flows from financing activities
Proceed from borrowings 1,810,000,000,000 1,355,000,000,000
Proceeds from issue of debentures 9,138,372,879,284 11,567,210,664,403
Repayment of borrowings (715,000,000,000) (720,000,000,000)
Repayment of debentures (9,531,485,000,000) (11,788,000,000,000)
Net cash inflow from financing activities 701,887,879,284 414,210,664,403
Net increase in cash and cash equivalents 707,678,258,450 381,791,222,140
Cash and cash equivalents at the beginning of the period 22 544,794,485,545 505,742,520,609
Cash and cash equivalents at the end of the period 22 1,252,472,743,995 887,533,742,749
2017
(Unaudited)
2016
(Unaudited)
Nine-Month Period Ended September 30
The above consolidated interim statements of cash flows should be read in conjunction with the accompanying notes.
7

Notes to the Consolidated Interim Financial Statements
September 30, 2017 and 2016 (Unaudited), and December 31, 2016
8
1. General Information
Hyundai Card Co., Ltd. (the Company or the Parent Company), which is a controlling
company in accordance with Korean International Financial Reporting Standards (“Korean
IFRS”) 1110 Consolidated Financial Statements, is engaged in the credit card business
under the Specialized Credit Financial Business Law of Korea, with its headquarters located
at 3, Uisadang-daero, Yeongdeungpo-gu, Seoul. On June 15, 1995, the Company acquired
the credit card business of Korea Credit Circulation Co., Ltd., and on June 16, 1995, the
Korean government granted permission to the Company to engage in the credit card
business. The Company operates its business under the Specialized Credit Financial
Business Act and other relevant applicable regulations.
As at September 30, 2017, the Company has approximately 6.78 million card members, 2.48
million registered merchants, and 112 marketing centers and branches.
As at September 30, 2017, the share capital of the Company is ￦ 802,326 million after
several capital increase and retirement of treasury shares. The shareholders as at
September 30, 2017 and December 31, 2016, are as follows:
Number of
shares
Percentage of
ownership(%)
Number of
shares
Percentage of
ownership(%)
Hyundai Motor Co., Ltd. 59,301,937 36.96% 59,301,937 36.96%
Kia Motors Co., Ltd. 18,422,142 11.48% 18,422,142 11.48%
Hyundai Commercial Inc. 1
39,378,026 24.54% 8,889,622 5.54%
Consumer Preferred Choice Limited 1
16,046,527 9.99% - -
Complete Logistic Solutions Limited 1
14,441,876 9.00% - -
AlpInvest Partners Co-Investments
2015 I SPV B.V. 1
7,101,393 4.43%
- -
AlpInvest Partners Co-Investments
2015 II SPV B.V. 1
707,652 0.44%
- -
AlpInvest Mich SPV B.V. 1
214,221 0.14% - -
IGE USA Investments1
- 0.00% 69,000,073 43.00%
Others 4,851,512 3.02% 4,851,512 3.02%
160,465,286 100.00% 160,465,286 100.00%
1 IGE USA Investments sold 69,000,073 ordinary shares (ownership interest: 43%) of the
Company, in accordance with the share transfer agreement entered on February 1, 2017, to
Hyundai Commercial Inc., Consumer Preferred Choice Limited, Complete Logistic Solutions
Limited, AlpInvest Partners Co-Investments 2015 I SPV B.V., AlpInvest Partners Co-
Investments 2015 II SPV B.V. and AlpInvest Mich SPV B.V., on February 24, 2017.

9
1.1 Consolidated Subsidiaries
Details of the consolidated subsidiaries as at September 30, 2017 and December 31, 2016,
are as follows:
September
30, 2017
December
31, 2016
Main business Location
Ownership interest held
by the Group (%)
Closing
month
Privia 4th SPC1
Asset securitization Korea 0.5 0.5 December
Privia 5th SPC1
Super Series 1st SPC1
Super Series 2nd SPC1
Super Series 3rd SPC1
Super Series 4th SPC1
Asset securitization Korea 0.5 - December
Bluewalnut Co., Ltd. Electronic banking Korea 100.0 100.0 December
Money Market Trust Trust business Korea 100.0 100.0 -
1 In determining power over subsidiaries except for Bluewalnut Co., Ltd. and Money Market
Trust, voting rights or similar rights are not major components, accordingly, these
subsidiaries are considered as structured entities.
Above subsidiaries except for Money Market Trust and Bluewalnut Co., Ltd. are special
purpose companies (SPCs) that were established for business activities of consolidated
entities. The Parent Company, Hyundai Card Co., Ltd., is considered to have control over
SPCs as the Parent Company has involved in purpose and design of SPC establishments
and the Parent Company is exposed to certain risks and rewards of SPCs. Also, all the
decision-making processes of SPCs are operated on autopilot by arrangements and articles
of association, and the Parent Company has ability to make changes in arrangements and
articles of association. Accordingly, the Parent Company included SPCs under consolidation.
Meanwhile, when event of default occurs from derivative contracts regarding asset-backed
securities issued by SPCs, counterparties of the derivative contracts can claim for
reimbursement from the Parent Company.

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2. Significant Accounting Policies
2.1 Basis of preparation
The Group maintains its accounting records in Korean won and prepares statutory financial
statements in the Korean language (Hangul) in accordance with International Financial
Reporting Standards as adopted by the Republic of Korea (Korean IFRS). The
accompanying consolidated interim financial statements have been condensed, restructured
and translated into English from the Korean language financial statements.
Certain information attached to the Korean language financial statements, but not required
for a fair presentation of the Group's financial position, financial performance or cash flows,
is not presented in the accompanying consolidated interim financial statements.
The Group’s condensed consolidated interim financial statements for the nine-month period
ended September 30, 2017, have been prepared in accordance with Korean IFRS 1034
Interim Financial Reporting. These condensed consolidated interim financial statements
have been prepared in accordance with Korean IFRS which is effective or early adopted as
at September 30, 2017.
(a) New and amended standards adopted by the Group
The Group has applied the following standards and amendments for the first time for their
annual reporting period commencing January 1, 2017. The adoption of these amendments
did not have any impact on the current period or any prior period and is not likely to affect
future periods.
- Amendments to Korean IFRS 1007 Statement of Cash Flows
Amendments to Korean IFRS 1007 Statement of Cash flows require to provide disclosures
that enable users of financial statements to evaluate changes in liabilities arising from
financing activities, including both changes arising from cash flows and non-cash flows.
- Amendments to Korean IFRS 1012 Income Tax
Amendments to Korean IFRS 1012 clarify how to account for deferred tax assets related to
debt instruments measured at fair value. Korean IFRS 1012 provides requirements on the
recognition and measurement of current or deferred tax liabilities or assets. The
amendments issued clarify the requirements on recognition of deferred tax assets for
unrealized losses, to address diversity in practice.
- Amendments to Korean IFRS 1112 Disclosures of Interests in Other Entities
Amendments to Korean IFRS 1112 clarify when an entity’s interest in a subsidiary, a joint
venture or an associate is classified as held for sales in accordance with Korean IFRS 1105,
the entity is required to disclose other information except for summarized financial

11
information in accordance with Korean IFRS 1112.
(b) New standards and interpretations not yet adopted by the Group
Certain new accounting standards and interpretations that have been published that are not
mandatory for annual reporting period commencing January 1, 2017 and have not been
early adopted by the Group are set out below.
- Amendments to Korean IFRS 1028 Investments in Associates and Joint Ventures
When an investment in an associate or a joint venture is held by, or it held indirectly through,
an entity that is a venture capital organization, or a mutual fund, unit trust and similar entities
including investment-linked insurance funds, the entity may elect to measure that investment
at fair value through profit or loss in accordance with Korean IFRS 1109. The amendments
clarify that an entity shall make this election separately for each associate of joint venture, at
initial recognition of the associate or joint venture. The Group will apply these amendments
retrospectively for annual periods beginning on or after January 1, 2018, and early adoption
is permitted. The Group does not expect the amendments to have a significant impact on the
consolidated financial statements because the Group is not a venture capital organization.
- Amendments to Korean IFRS 1102 Share-based Payment
Amendments to Korean IFRS 1102 clarify accounting for a modification to the terms and
conditions of a share-based payment that changes the classification of the transaction from
cash-settled to equity-settled. And also, clarifies that the measurement approach should treat
the terms and conditions of a cash-settled award in the same way as for an equity-settled
award. This amendment will be effective for annual periods beginning on or after January 1,
2018, with early adoption permitted. The Group does not expect the amendments to have a
significant impact on the consolidated financial statements.
- Enactments to Interpretation 2122 Foreign Currency Transaction and Advance
Consideration
According to these enactments, the date of the transaction for the purpose of determining
the exchange rate to use on initial recognition of the related asset, expense or income (or
part of it) is the date on which an entity initially recognizes the non-monetary asset or non-
monetary liability arising from the payment or receipt of advance consideration. If there are
multiple payments or receipts in advance, the entity shall determine a date of the transaction
for each payment or receipt of advance consideration. These enactments will be effective for
annual periods beginning on or after January 1, 2018, with early adoption permitted. The
Group does not expect the enactments to have a significant impact on the consolidated
financial statements.
- Enactment to Korean IFRS 1109 Financial Instruments
The new standard for financial instruments issued on September 25, 2015 are effective for

12
annual periods beginning on or after January 1, 2018 with early application permitted. This
standard will replace Korean IFRS 1039 Financial Instruments: Recognition and
Measurement. The Group will apply the standards for annual periods beginning on or after
January 1, 2018.
The standard requires retrospective application with some exceptions. For example, an
entity is not required to restate prior period in relation to classification and measurement
(including impairment) of financial instruments. The standard requires prospective
application of its hedge accounting requirements for all hedging relationships except the
accounting for time value of options and other exceptions.
Korean IFRS 1109 Financial Instruments requires all financial assets to be classified and
measured on the basis of the entity’s business model for managing financial assets and the
contractual cash flow characteristics of the financial assets. A new impairment model, an
expected credit loss model, is introduced and any subsequent changes in expected credit
losses will be recognized in profit or loss. Also, hedge accounting rules amended to extend
the hedging relationship, which consists only of eligible hedging instruments and hedged
items, qualifies for hedge accounting.
An effective implementation of Korean IFRS 1109 requires preparation processes including
financial impact assessment, accounting policy establishment, accounting system
development and the system stabilization. The impact on the Group’s financial statements
due to the application of the standard is dependent on judgements made in applying the
standard, financial instruments held by the Group and macroeconomic variables.
With the implementation of Korean IFRS 1109, the Group is preparing for internal
management process and beginning to adjust accounting system for financial instruments
reporting. Also, the Group is analyzing the financial effects of applying the standard.
However, the following areas are likely to be affected in general.

13
(a) Classification and Measurement of Financial Assets
When implementing Korean IFRS 1109, the classification of financial assets will be driven by
the Group’s business model for managing the financial assets and contractual terms of cash
flow. The following table shows the classification of financial assets measured subsequently
at amortized cost, at fair value through other comprehensive income and at fair value
through profit or loss. If a hybrid contract contains a host that is a financial asset, the
classification of the hybrid contract shall be determined for the entire contract without
separating the embedded derivative.
Business model for the
contractual cash flows
characteristics
Solely represent payments of
principal and interest
All other
Hold the financial asset for
the collection of the
contractual cash flows
Measured at amortized cost1
Recognized at fair value
through profit or loss2
Hold the financial asset for
the collection of the
contractual cash flows and
trading
Recognized at fair value through
other comprehensive income1
Hold for trading
Recognized at fair value through
profit or loss
1 A designation at fair value through profit or loss is allowed only if such designation
mitigates an accounting mismatch (irrevocable).
2 Equity investments not held for trading can be recorded in other comprehensive income
(irrevocable).
With the implementation of Korean IFRS 1109, the criteria to classify the financial assets at
amortized cost or at fair value through other comprehensive income are more strictly applied
than the criteria applied with Korean IFRS 1039. Accordingly, the financial assets at fair
value through profit or loss may increase by implementing Korean IFRS 1109 and may result
an extended fluctuation in profit or loss.
As at September 30, 2017, the Group owns card assets and other financial assets of
12,390,055 million, financial assets available-for-sales of 1,767 million and financial
assets at fair value thorough profit or loss of 889,803 million.
According to Korean IFRS 1109, a debt instrument is measured at amortized cost if: a) the
objective of the business model is to hold the financial asset for the collection of the
contractual cash flows, and b) the contractual cash flows under the instrument solely
represent payments of principal and interest. As at September 30, 2017, the Group
measured card assets and other financial assets of 12,390,055 million at amortized costs.
According to Korean IFRS 1109, a debt instrument is measured at fair value through other
comprehensive income if the objective of the business model is achieved both by collecting

14
contractual cash flows and selling financial assets; and the contractual cash flows represents
solely payments of principal and interest on a specific date under contract terms. As at
September 30, 2017, the Group does not hold debt instruments classified as financial assets
available-for-sale.
According to Korean IFRS 1109, equity instruments that are not held for trading, the Group
can make an irrevocable election at initial recognition to classify the instruments as assets
measured at fair value through other comprehensive income, which all subsequent changes
in fair value being recognized in other comprehensive income and not recycled to profit or
loss. As at September 30, 2017, the Group holds equity instruments of 1,767 million
classified as financial assets available-for-sale and there is no recycled unrealized gain or
loss arose from the equity instruments to profit or loss.
According to Korean IFRS 1109, debt instruments those contractual cash flows do not
represent solely payments of principal and interest and held for trading, and equity
instruments that are not designated as instruments measured at fair value through other
comprehensive income are measured at fair value through profit or loss. As at September 30,
2017, the Group holds debt and equity instruments classified as financial assets at fair value
through profit or loss that amount to 683,242 million and 200,037 million, respectively.
(b) Impairment: Financial Assets and Contract Assets
Korean IFRS 1109 sets out a new forward looking ‘expected loss’ impairment model which
replaces the incurred loss model under Korean IFRS 1039 that impaired assets if there is an
objective evidence and applies to:
 Financial assets measured at amortized cost
 Debt investments measured at fair value through other comprehensive income, and
 Certain loan commitments and financial guaranteed contracts.
Under Korean IFRS 1109 ‘expected loss’ model, a credit event (or impairment ‘trigger’) no
longer has to occur before credit losses are recognized. The Group will always recognize (at
a minimum) 12-month expected credit losses in profit or loss. Lifetime expected losses will
be recognized on assets for which there is a significant increase in credit risk after initial
recognition.

15
Stage Loss allowance
1
No significant increase in credit
risk after initial recognition1
12-month expected credit losses (expected credit
losses that result from those default events on the
financial instrument that are possible within 12
months after the reporting date)
2
Significant increase in credit risk
after initial recognition Lifetime expected credit losses (expected credit
losses that result from all possible default events
over the life of the financial instrument)3 Credit-impaired
1 If the financial instrument has low credit risk at the end of the reporting period, the Group
may assume that the credit risk has not increased significantly since initial recognition.
Under Korean IFRS 1109, the asset that is credit-impaired at initial recognition would
recognize all changes in lifetime expected credit losses since the initial recognition as a loss
allowance with any changes recognized in profit or loss.
As at September 30, 2017, the Group owns debt investment carried at amortized cost of
12,390,055 million (card assets and other financial assets). And, the Group recognized
loss allowance of 292,649 million for these assets.
(c) Hedge Accounting
Hedge accounting mechanics (fair value hedges, cash flow hedges and hedge of net
investments in a foreign operations) required by Korean IFRS 1039 remains unchanged in
Korean IFRS 1109, however, the new hedge accounting rules will align the accounting for
hedging instruments more closely with the Group’s risk management practices. As a general
rule, more hedge relationships might be eligible for hedge accounting, as the standard
introduces a more principles-based approach. Korean IFRS 1109 allows more hedging
instruments and hedged items to qualify for hedge accounting, and relaxes the hedge
accounting requirement by removing two hedge effectiveness tests that are a prospective
test to ensure that the hedging relationship is expected to be highly effective and a
quantitative retrospective test (within range of 80-125 %) to ensure that the hedging
relationship has been highly effective throughout the reporting period.
With implementation of Korean IFRS 1109, volatility in profit or loss may be reduced as
some items that were not eligible as hedged items or hedging instruments under Korean
IFRS 1039 are now eligible under Korean IFRS 1109.
- Enactment to Korean IFRS 1115 Revenue from Contracts with Customers
The Group will apply Korean IFRS 1115 Revenue from Contracts with Customers issued on
November 6, 2015 for annual reporting periods beginning on or after January 1, 2018. Earlier
adoption is permitted under Korean IFRS. This standard replaces Korean IFRS 1018
Revenue, Korean IFRS 1011 Construction Contracts, Interpretation 2031 Revenue-Barter
Transactions Involving Advertising Services, Interpretation 2113 Customer Loyalty Programs,

16
Interpretation 2115 Agreements for the Construction of Real Estate and Interpretation 2118
Transfers of assets from customers.
The Group must apply Korean IFRS 1115 Revenue from Contracts with Customers within
annual reporting periods beginning on or after January 1, 2018, and will apply the standard
retrospectively to prior reporting period presented in accordance with Korean IFRS 1008
Accounting Policies, Changes in Accounting Estimates and Errors and apply simplified
transition method with no restatement for completed contracts and other as at January 1,
2017.
The new standard is based on the principle that revenue is recognized when control of a
good or service transfers to a customer so the notion of control replaces the existing notion
of risks and rewards. A new five-step process must be applied before revenue from contract
with customer can be recognized:
 Identify contracts with customers
 Identify the separate performance obligation
 Determine the transaction price of the contract
 Allocate the transaction price to each of the separate performance obligations, and
 Recognize the revenue as each performance obligation is satisfied.
As at September 30, 2017, the Group is analyzing the financial effects of applying the
standard.
2.2 Significant Accounting Policies
Significant accounting policies and method of computation used in the preparation of the
condensed consolidated interim financial statements are consistent with those of the
consolidated financial statements for the year ended December 31, 2016, except for the
changes due to the application of amendment and enactments of standards described in
Note 2.1 (a) and the one described below.
2.2.1 Income Tax Expense
Income tax expense for the interim period is recognized based on management’s best
estimate of the weighted average annual income tax rate expected for the full financial year.
The estimated average annual tax rate is applied to the pre-tax income.
3. Critical Accounting Estimates and Assumptions
The preparation of financial statements requires the Group to make estimates and
assumptions concerning the future. Estimates and judgements are continually evaluated and
are based on historical experience and other factors, including expectations of future events

17
that are believed to be reasonable under the circumstances. The resulting accounting
estimates will, by definition, seldom equal the related actual results.
Significant accounting estimates and assumptions applied in the preparation of these
condensed consolidated interim financial statements are the same as those that applied to
the consolidated financial statements for the year ended December 31, 2016, except for the
estimates used to determine income tax expense.
4. Restricted Financial Assets
Details of restricted financial assets as at September 30, 2017 and December 31, 2016, are
as follows:
(in millions of Korean won) September 30,
2017
December 31,
2016 Description
Cash and
deposits
Kookmin Bank and others 18 18
Guarantee deposits for
overdraft
Shinhan Bank and others 23,100 30,300 Secured deposits
Citibank 57,519 27,979
Deposits related to
securitization
Mirae Asset Securities 7 7 Social enterprise fund
Other financial
assets
Korea Asset Management 7,123 7,123
Escrow account in relation
to a sale of Daewoo
Engineering &
Construction Co., Ltd.
87,767 65,427
5. Securities
Securities as at September 30, 2017 and December, 31 2016, are as follows:
(in millions of Korean won)
September 30,
2017
December 31,
2016
Financial assets held for trading
Debt securities 683,242 814,396
Equity securities 200,037 120,015
883,279 934,411
Available-for-sale financial assets
Unlisted equity securities 1,767 1,767
885,046 936,178

18
6. Card Assets
Details of card assets by customers as at September 30, 2017 and December 31, 2016, are
as follows:
(in millions of September 30, 2017
Korean won)
Principal
Deferred
origination
cost and fee
Present
value of
discounts
Provision for
impairment
Carrying
amount
Card receivables
Household 7,715,357 (15,103) (9,910) (83,186) 7,607,158
Corporates 673,763 - - (4,098) 669,665
Short-term card loan
(cash advances)
Household 822,681 - - (29,516) 793,165
Long-term card loan
(card loans)
Household 3,329,069 - (655) (174,042) 3,154,372
12,540,870 (15,103) (10,565) (290,842) 12,224,360
(in millions of December 31, 2016
Korean won)
Principal
Deferred ori-
gination
cost and fee
Present
value of
discounts
Provision for
impairment
Carrying
amount
Card receivables
Household 7,720,393 (12,756) (7,929) (83,019) 7,616,689
Corporates 569,827 - - (2,868) 566,959
Short-term card loan
(cash advances)
Household 854,784 - - (30,728) 824,056
Long-term card loan
(card loans)
Household 3,220,050 - (732) (167,123) 3,052,195
12,365,054 (12,756) (8,661) (283,738) 12,059,899

19
7. Provisions for Impairment
Changes in provisions for impairment for the nine-month periods ended September 30, 2017
and 2016, are as follows:
(in millions of 2017
Korean won)
Card
receivables
Short-term
card loan
(cash
advances)
Long-term
card loan
(card loans) Other assets Total
Beginning balance 85,887 30,728 167,123 3,437 287,175
Written-off (2,328) (906) (3,119) - (6,353)
Recoveries 296 142 199 - 637
Disposal and repurchase (18,390) (10,051) (21,225) - (49,666)
Additional (reversal of)
provisions
21,819 9,603 31,064 (1,402) 61,084
Ending balance 87,284 29,516 174,042 2,035 292,877
Korean won)
Card
receivables
Short-term
card loan
(cash
advances)
Long-term
card loan
(card loans) Other assets Total
Written-off (507) (207) (359) - (1,073)
Recoveries 325 466 185 - 976
Disposal and repurchase (17,672) (10,235) (18,204) - (46,111)
Additional provisions 17,711 10,083 31,176 797 59,767
Ending balance 76,558 32,975 158,715 4,010 272,258

20
8. Property and Equipment
Changes in property and equipment for the nine-month periods ended September 30, 2017
Korean won)
Land Buildings Vehicles
Fixtures
and
equipment
Construction
-in-progress Total
Beginning balance 141,136 111,978 2,075 73,007 35,076 363,272
Acquisition - 3,802 - 19,642 322 23,766
Reclassification - 21,727 - 12,971 (34,883) (185)
Disposal - - - (1,047) - (1,047)
Depreciation - (2,693) (139) (26,664) - (29,496)
Ending balance 141,136 134,814 1,936 77,909 515 356,310
Korean won)
Land Buildings Vehicles
Fixtures
and
equipment
Construction
-in-progress Total
Acquisition - - - 9,432 23,594 33,026
Reclassification - - - 2,491 (3,411) (920)
Disposal - (58) - (1,340) - (1,398)
Depreciation - (2,272) (139) (23,777) - (26,188)
Ending balance 141,136 106,387 2,121 71,208 34,272 355,124

21
9. Intangible Assets
Changes in intangible assets for the nine-month periods ended September 30, 2017 and
2016, are as follows:
Korean won)
Developm-
ent cost Software
Industrial
property
right Others
Construction
-in-progress
Member-
ship Total
Beginning balance 75,467 20,301 - 824 8,283 19,811 124,686
Acquisition 12,876 2,579 4 - 8,448 - 23,907
Reclassification 7,589 488 2 - (8,046) - 33
Disposal - (19) - - - - (19)
Amortization (22,013) (5,744) - (266) - - (28,023)
Ending balance 73,919 17,605 6 558 8,685 19,811 120,584
Korean won) Developm-
ent cost Software Others
Construction
-in-progress
Member-
ship Total
Acquisition 6,063 1,307 149 3,659 - 11,178
Reclassification 3,034 261 - (3,298) - (3)
Disposal (35) - (600) - - (635)
Amortization (20,609) (6,125) - - (576) (27,310)
Ending balance 74,499 19,522 20,172 5,208 914 120,315

22
10. Borrowings
Details of borrowings as at September 30, 2017 and December 31, 2016, are as follows:
(in millions of Korean won) Annual interest
rate (%)
September 30,
2017
December 31,
2016
Short-term borrowings
Commercial Paper
Shinhan Bank and 7
others
1.58 ~ 2.08 625,000 100,000
Borrowings
Korea Development
Bank and 8 others
2.26 ~ 2.66 375,000 405,000
1,000,000 505,000
Current portion of long-term borrowings
Borrowings Woori Bank and 2 others 2.67 ~ 2.77 160,000 20,000
Long-term borrowings
Commercial Paper
KTB Investment
Securities and 8 others
1.62 ~ 2.10 1,370,000 790,000
Borrowings
NH NongHyup Bank
and another
2.67 ~ 2.68 80,000 200,000
1,450,000 990,000
2,610,000 1,515,000
Details of debentures as at September 30, 2017 and December 31, 2016, are as follows:
(in millions of Korean won) Annual interest
rate (%) Maturity
September 30,
2017
December 31,
2016
Short-term debentures 1.58 ~ 1.63
2017.10.24 ~
2018.02.06
190,000 -
Current portion of long-term
debentures
1.45 ~ 5.50
2017.10.02 ~
2018.09.21
2,181,000 3,468,465
Long-term debentures 1.52 ~ 4.75
2018.10.01 ~
2027.09.19
5,591,370 4,972,800
7,962,370 8,441,265
Less: Discounts on debentures (9,091) (8,394)
7,953,279 8,432,871
The outstanding debenture is non-guaranteed corporate bonds, with their principals to be
redeemed either by installment or at maturity. Bond issuance costs are recorded as
discounts on debentures and amortized using the effective interest rate method.

23
11. Post-employment Benefits
11.1 Defined Contribution Plan
The expense recognized in the consolidated interim statements of comprehensive income
related to post-employment benefit under the defined contribution plan for the nine-month
periods ended September 30, 2017 and 2016, is as follows:
(in millions of Korean won) 2017 2016
Defined contribution plan 138 115
11.2 Net Employee Benefit Liabilities
Details of net employee benefit liabilities as at September 30, 2017 and December 31, 2016,
are as follows:
September 30,
2017
December 31,
2016
Net defined benefit liabilities 20,452 9,462
Long-term employee benefit liabilities 5,194 4,644
25,646 14,106
11.3 Defined Benefit Plan
(a) General
The Group operates a defined benefit plan for qualified employees by applying average
salary over the past 3 months and length of service, etc. Plan assets mainly consist of
deposits, and are exposed to risk of lower interest rate.
(b) Net defined benefit liabilities
Changes in present value of net defined benefit liabilities for the nine-month periods ended
September 30, 2017 and 2016, are as follows:
(in millions of Korean won) 2017
Present value
of the defined
benefit
obligation Plan assets
National
pension fund
Net defined
benefit
liabilities
Beginning balance 85,965 (76,486) (17) 9,462
Current service cost 10,351 - - 10,351
Interest expense (income) 1,702 (1,478) - 224

24
Return on plan assets
(excluding amounts
included in interest income)
- 677 - 677
Actuarial gain from change
in financial assumptions
(2,260) - - (2,260)
Actuarial loss from
experience adjustments
1,868 - - 1,868
Transfer of employees
between the Company and
its related companies
2,354 (1,360) - 994
Benefits paid (4,489) 3,624 1 (864)
Ending balance 95,491 (75,023) (16) 20,452
Present value
of the defined
benefit
obligation Plan assets
National
pension fund
Net defined
benefit
liabilities
Beginning balance 81,458 (62,238) (21) 19,199
Current service cost 10,708 - - 10,708
Interest expense (income) 1,505 (1,114) - 391
Return on plan assets
(excluding amounts
included in interest income)
- 230 - 230
Actuarial loss from change
in financial assumptions
9,332 - - 9,332
Actuarial gain from
experience adjustments
(2,197) - - (2,197)
Transfer of employees
between the Company and
its related companies
324 (416) 5 (87)
Benefits paid (5,683) 6,192 - 509
Ending balance 95,447 (57,346) (16) 38,085
11.4 Long-term Employee Benefits
Changes in present value of long-term employee benefit liabilities for the nine-month periods
ended September 30, 2017 and 2016, are as follows:
Beginning balance 4,644 4,407
Current service cost 410 401
Interest expense 97 89
Actuarial losses 352 409
Benefits paid (309) (161)
Ending balance 5,194 5,145

25
12. Provisions
Changes in provisions for the nine-month periods ended September 30, 2017 and 2016, are
as follows:
(in millions of
Korean won) 2017
Unused
commitment Point
Provision for
restoration Others Total
Increase (decrease) 2,650 (1,267) (947) - 436
Others - - 215 (3,625) (3,410)
Ending balance 59,831 22,223 4,978 10,567 97,599
(in millions of
Korean won) 2016
Unused
commitment Point
Provision for
restoration Others Total
Increase (decrease) 3,900 (4,973) (734) 7,400 5,593
Others - - 959 - 959
Ending balance 56,988 23,516 6,561 15,547 102,612
Other provisions include provision for deposits in escrow account, for pending litigations, and
for consumer protection amounting to ￦2,233 million, ￦5,139 million, and ￦3,195 million,
respectively, as at September 30, 2017.
13. Derivatives and Hedge Accounting
There are no derivative instruments held for trading as at September 30, 2017 and
December 31, 2016.
Cash flow hedge
The Group removes the volatility risk of future cash flow of a hedged item, such as
borrowings, caused by changes in market interest rates or in foreign currency rates by using
derivative instruments, such as an interest rate swap or currency swap.

26
Details of derivative assets and liabilities as at September 30, 2017 and December 31, 2016,
are as follows:
(in millions of Korean won) September 30, 2017
Unsettled
contract
amount Asset Liabilities
Accumulated
other
comprehensive
income1
Interest rate swap 1,875,000 4,926 3,980 718
Currency swap 1,269,870 1,598 13,109 (2,286)
3,144,870 6,524 17,089 (1,568)
(in millions of Korean won) December 31, 2016
Unsettled
contract
amount Asset Liabilities
Accumulated
other
comprehensive
income1
Interest rate swap 1,235,000 1,468 8,876 (5,629)
Currency swap 1,317,265 80,459 - (3,800)
2,552,265 81,927 8,876 (9,429)
1 Amount reflects tax effect.
For transactions between local and foreign currencies, the unsettled contract amount is
calculated by applying the basic foreign exchange rate at the end of reporting period to the
contract amount in foreign currencies. For transactions between foreign currencies and other
foreign currencies, the unsettled contract amount is calculated by applying the basic foreign
exchange rate at the end of reporting period to the contract amount in foreign currencies
purchased.
The maximum period that the Group exposed to the risk of volatility in future cash flows
arising from derivatives designated as cash flow hedges is expected to be until December 20,
2022. Meanwhile, there is no ineffective portion recognized related to cash flow hedge for
the nine-month periods ended September 30, 2017 and 2016.

27
14. Retained Earnings
Retained earnings as at September 30, 2017 and December 31, 2016, consist of:
September 30,
2017
December 31,
2016
Legal reserves1 45,127 45,127
Regulatory reserve for credit losses (Note 16) 657,774 640,026
Unappropriated retained earnings 1,303,988 1,177,198
2,006,889 1,862,351
1 The Commercial Code of the Republic of Korea requires the Parent Company to
appropriate for each financial period, as a legal reserve, an amount equal to a minimum of
10% of cash dividends paid until such reserve equals 50% of its issued share capital. The
reserve is not available for cash dividends payment, but may be transferred to share capital
or used to reduce accumulated deficit.
Changes in retained earnings for the nine-month periods ended September 30, 2017 and
Beginning balance 1,862,351 1,672,385
Profit for the period 181,926 153,585
Dividends paid (37,388) -
Ending balance 2,006,889 1,825,970
Dividends paid for the nine-month period ended September 30, 2017, are as follows:
Total number
of ordinary
shares issued
Total number
of shares for
dividends
Dividend per
share
(in Korean
won)
Total
dividend
Ordinary shares 160,465,286 160,465,286 233 37,388

28
15. Accumulated Other Comprehensive Income
Changes in accumulated other comprehensive income for the nine-month periods ended
(in millions of
Korean won) 2017
Changes
Beginning
balance
Reclassification
to profit or loss Other Tax effects
Ending
balance
Cash flow hedges (9,429) 2,206 8,138 (2,483) (1,568)
Remeasurements of net
defined benefit liabilities
(19,144) - (284) 81 (19,347)
(28,573) 2,206 7,854 (2,402) (20,915)
(in millions of
Korean won) 2016
Changes
Beginning
balance
Reclassification
to profit or loss Other Tax effects
Ending
balance
Cash flow hedges (17,142) 633 13,882 (3,485) (6,112)
Remeasurements of net
defined benefit liabilities
(21,242) - (7,366) 1,760 (26,848)
(38,384) 633 6,516 (1,725) (32,960)
16. Regulatory reserve for Credit Losses
Details of regulatory reserve for credit losses as at September 30, 2017 and December 31,
September 30,
2017
December 31,
2016
Beginning 657,774 640,026
Amount estimated to be appropriated 37,591 17,748
Ending 695,365 657,774

29
Amount estimated to be appropriated and adjusted profit after provision of regulatory reserve
for credit losses for the nine-month periods ended September 30, 2017 and 2016, are as
follows:
Amount estimated to be appropriated 37,591 17,383
Adjusted profit after provision of regulatory
reserve for credit losses 144,335 136,201
Adjusted earnings per share after provision of
regulatory reserve for credit losses
(in Korean won) 899 849
17. Card Income and Expense
Details of card income and expense for the three-month and nine-month periods ended
Three months Nine months Three months Nine months
Card income
Agent commission 338,887 1,016,118 313,668 941,313
Income from installment service 50,658 144,748 41,082 111,331
Income from cash advance 32,461 95,472 32,024 93,893
Income from card loan 119,628 363,234 126,980 379,522
Revolving interest income 48,039 142,521 51,416 152,435
Overseas income commission 7,855 22,923 9,023 21,973
Income from annual
subscription 43,564 129,671 42,660 128,483
Others 37,571 116,262 40,818 132,907
678,663 2,030,949 657,671 1,961,857
Card expense
Acquisition fee 43,980 144,997 54,867 171,480
Promotion 45,584 182,206 28,482 86,105
Service fee 163,349 473,264 148,848 446,823
Financial service fee 1,979 5,958 2,128 6,516
A new credit sale handling fee 39,248 108,339 39,985 116,119
Overseas payment fee 16,505 45,431 12,364 36,536
Card issuance expenses 6,451 18,125 5,161 15,669
Others 7,969 21,729 9,782 31,304
325,065 1,000,049 301,617 910,552

30
18. Net Interest Expense
Interest income and expense for the three-month and nine-month periods ended September
30, 2017 and 2016, are as follows:
Interest income
Cash and deposits 5,259 14,479 5,101 14,658
Others 201 1,085 244 693
5,460 15,564 5,345 15,351
Interest expense
Borrowings 12,760 33,021 6,378 16,321
Debentures 47,614 148,382 57,100 178,102
Others (8) 44 34 100
60,366 181,447 63,512 194,523
19. Other Operating Income and Expenses
Other operating income and expense for the three-month and nine-month periods ended
Other operating income
Gain on foreign currency
transactions 8,655 36,339 4,615 13,699
Gain on foreign currency
translations (9,010) 49,440 47,196 52,233
Gain on valuation of derivatives 2,130 2,460 - -
Others 6,575 77,717 4,592 22,789
8,350 165,956 56,403 88,721
Other operating expenses
Loss on foreign currency
transactions 1,454 4,501 1,534 5,124
Loss on foreign currency
translations 2,130 2,460 - -
Loss on derivatives
transactions 3,881 22,035 - -
Loss on valuation of derivatives (9,010) 49,440 47,196 52,233
Others 6,034 20,815 13,411 29,968
4,489 99,251 62,141 87,325

31
20. Selling and Administrative Expenses
Details of selling and administrative expenses for the three-month and nine-month periods
ended September 30, 2017 and 2016, are as follows:
Salaries 40,239 110,238 39,342 116,107
Post-employment benefits 3,900 12,376 3,716 12,389
Employee benefits 5,966 19,104 5,979 19,640
Travel expenses 759 2,157 530 1,899
Communication expenses 9,212 27,564 10,334 26,500
Postal expenses 3,831 12,101 3,954 11,349
Rental expenses 6,276 20,443 6,900 19,476
Taxes and dues 5,045 15,080 4,609 14,503
Repair and maintenance
expenses 334 987 313 1,141
Insurance premiums 101 221 98 216
Entertainment expenses 156 339 138 328
Advertising expenses 10,652 33,817 6,773 33,940
Supply expenses 895 2,814 655 1,903
Vehicle maintenance expenses 4 12 2 9
Book and magazine expenses 56 201 93 271
Publication expenses 1,558 4,629 1,417 4,832
Training expenses 1,065 3,164 1,324 3,338
IT expenses 12,753 37,611 11,086 33,427
Expense for temporary staff 1,395 4,014 1,250 4,029
Professional service expenses 38,847 116,978 34,520 103,303
Delivery commission 286 903 331 1,001
Commission expenses 7,468 23,545 7,024 22,517
Business activity expenses 931 2,502 861 2,215
Depreciation 10,235 29,496 8,646 26,188
Amortization 9,654 28,023 8,963 27,310
Event expenses 173 1,724 277 1,053
Conference expenses 115 301 111 288
Building administrative expenses 2,701 7,477 2,208 6,356
174,607 517,821 161,454 495,528

32
21. Tax Expense
Income tax expense for the nine-month periods ended September 30, 2017 and 2016,
consists of:
Current tax on profits for the period (including
additional payment of tax and income tax
refund) 62,565 48,451
Changes in deferred tax assets (2,125) 1,414
Income tax expense reflected directly to equity (2,401) (1,725)
Income tax expense 58,039 48,140
Income tax expenses reflected directly to equity for the nine-month periods ended
Beginning
balance
Increase
(Decrease)
Ending
balance
Tax effect related to cash flow hedges 2,980 (2,483) 497
Tax effect related to remeasurements
of net defined benefit liabilities 6,050 82 6,132
9,030 (2,401) 6,629
Beginning
balance
Increase
(Decrease)
Ending
balance
Tax effect related to cash flow hedges 5,413 (3,485) 1,928
Tax effect related to remeasurements
of net defined benefit liabilities 6,708 1,760 8,468
12,121 (1,725) 10,396

33
The tax on the Group’s profit before tax differs from the theoretical amount that would arise
using the weighted average tax rate applicable to profits of the Group as follows:
Profit before income tax 239,964 201,725
Tax at domestic tax rates applicable to profits in
the respective countries1 57,609 48,355
Adjustments:
Others 430 (215)
430 (215)
Income tax expense for continuing operations 58,039 48,140
Effective tax rates 24.19% 23.86%
1 Applicable income tax rate: 1) 11% for below ￦200 million, 2) 22% for ￦200 million to
￦20 billion and 3) 24.2% for above ￦20 billion.
22. Consolidated Interim Statements of Cash Flows
Details of cash and cash equivalents as at September 30, 2017 and December 31, 2016, are
as follows:
(in millions of Korean won) September 30, 2017 December 31, 2016
Current deposit 1,019 362
Ordinary deposit 378,481 116,199
Time deposit - 4,800
Other cash and cash equivalents 872,973 423,433
1,252,473 544,794
Cash generated from operations for the nine-month periods ended September 30, 2017 and
Adjustments:
Income tax expense 58,039 48,140
Interest income (15,564) (15,351)
Interest expense 181,447 194,523
Dividend income (162) (297)
Impairment loss and losses on disposal of
receivables 171,828 175,546

34
Post-employment benefits 10,713 11,214
Long-term employee benefits 860 899
Depreciation 29,496 26,188
Amortization 28,023 27,310
Loss on foreign currency translations 2,460 -
Losses on valuation of derivatives 49,440 52,233
Losses on disposal of property and
equipment 804 133
Losses on disposal of intangible assets - 59
Sales promotional expenses 25,803 22,432
Provisions 436 5,593
Other operating expenses 1,014 481
Gains on valuation of financial assets held for
trading (871) (2,348)
Gains on disposal of available-for-sale
financial assets (22) (37)
Gains on foreign currency translation (49,440) (52,233)
Gain on valuation of derivatives (2,460) -
Amortization of present value of discounts of
card assets (24,043) (23,358)
Amortization of deferred origination cost and
fee of card assets (23,632) (19,593)
Gains on disposal of property and equipment (34) (154)
Gains on disposal of intangible assets (1) (10)
Other operating income (25) (23)
444,109 451,347
Changes in operating assets and liabilities:
Decrease (increase) in financial assets held
for trading 52,003 (408,773)
Decrease (increase) in card assets (315,818) 67,193
Increase in deposits (7,100) (16,200)
Decrease (increase) in other assets (23,361) 3,213
Increase (decrease) in other payables (15,929) 39,134
Increase in withholdings 7,557 15,198
Decrease in accrued expenses (32,605) (10,987)
Increase (decrease) in other liabilities 12,082 (14,816)
(323,171) (326,038)
Cash generated from operations 302,864 278,893

35
23. Contingencies and Commitments
(a) Credit line agreement
The followings is credit line agreement as at September 30, 2017 and December 31, 2016.
Financial
instrument
September 30,
2017
December 31,
2016
Intraday overdraft limit
and others
Shinhan Bank
and 6 others
342,500 440,000
(b) Revolving credit facility
As the Group has a revolving credit facility agreement with many financial institutions for
credit line as at September 30, 2017, the Group made a revolving credit facility agreement
for 1,473,168 million with Kookmin Bank and 15 others for credit line as at September 30,
2017.
(c) Pending litigations
As at September 30, 2017, the Group is involved in 17 cases (24,939 million) as a
defendant, 4 cases (17,999 million) as a plaintiff and the cases for debt collection against
multiple debtors in the important pending litigations. The Group records 5,139 million for
other provisions regarding the cases as a defendant. Management of the Group does not
anticipate that these pending litigations referred above will have a significant effect on the
Group’s consolidated interim financial statements (Note 12).
(d) Deposit for loss reimbursement
As at September 30, 2017, the Group has deposits of the proceeds and interests from the
sale of shares of Daewoo Engineering & Construction Co., Ltd. in an escrow account, which
is amounting to 2,233 million and 4,890 million, respectively. The Group recognized
2,233 million of the provision on deposits in escrow account, and 4,467 million of the
provision for pending litigation related to the sale of shares of Daewoo Engineering &
Construction Co., Ltd. (Note 12).
(e) Contract of sale of receivables
The Group entered into a contract with Hyundai Capital Services, Inc. relating to its sale of
receivables on January 24, 2006. In accordance with the contract, the Group sells the
receivables that are 60 days or more past due or written off (partially including receivables
that are before 60 days) to Hyundai Capital Services, Inc. Such sale occurs five times a
month on designated cutoff dates at the amount calculated using a predetermined price
pursuant to the contract. As a result, losses on disposal of loans receivable amounting to
110,744 million and 115,778 million for nine-month periods ended September 30, 2017
and 2016 were recognized.

36
(f) Reserve for loss reimbursement
The Group has the obligation to reimburse customers for fraudulent credit card activities; the
Group records the expected losses as an accrued expense.
(g) Insurance for the implementation of the liability for damages
The Group has insured a value of 1 billion for the implementation of the liability for
damages in accordance with the Article 43 of Credit Information Act.
(h) Commitment associated with asset-backed securitization
The Group continuously transfers receivables to maintain that the balance of the asset-
backed securitization is above a certain level of trust beneficiary certificates relating to the
asset-backed securitization. According to the agreement on the Group’s asset-backed
securitization, in order to enhance the credit level of the asset-backed securities, several
provisions are in place as trigger clauses to be used for early redemption calls, thereby
limiting the risk that the investors are exposed to resulting from a change in quality of the
assets in the future. In the event that the asset-backed securitization of the Group is in
violation of the applicable trigger clause, the Group is obliged to make early redemption for
the asset-backed securities.

37
24. Related Party Transactions
As at September 30, 2017, details of the related parties are as follows:
Companies
Parent company Hyundai Motor Company
Other related parties Green Air, Kia Motors, Kia Tigers, Maintrans Co., Ltd., Busan
Finance Center AMC, Seoul PMC, HL Green Power, WIA-MAGNA
Powertrain, Eukor Car Carriers, Innocean Worldwide, Iljin Bearing,
Chunbuk Hyundai Motors FC, GIT, Korea Credit Bureau, Hankook
Economy Daily, Haevichi Country Club, Haevichi Hotels&Resorts,
Hyundai Construction, Hyundai Glovis, Hyundai Dymos, Hyundai City
Corporation, Hyundai Life, Hyundai Rotem, Hyundai Materials,
Hyundai Mobis, Hyundai BNG Steel, Hyundai Farm Land &
Development, Hyundai Engineering & Steel Industries, Hyundai IHL,
Hyundai Energy, Hyundai Engineering, Hyundai NGV, Hyundai
MSEAT, Hyundai MNSOFT, Hyundai Auto Ever Systems, Hyundai-
autron, Hyundai WIA, Hyundai WIA IHI Turbo, Hyundai Steel
Company, HYUNDAI Architects & Engineers Assoc., Hyundai
Special Steel Company, Hyundai Capital, HMC Investment
Securities Co., Ltd., Hyundai Commercial, Hyundai KEFICO, Hyundai
Powertech, Hyundai Partecs, Hyundai Capital America and others
Sales and purchases with related parties for the nine-month periods ended September 30,
2017 and 2016, are as follows:
(in millions of
Korean won) 2017
Income Expense Others
Card
income
Rental
income Others
Card
expense
Selling and
administrative
expenses Others
Purchase of
property
and
equipment
Purchase
of
intangible
assets
Disposal
of assets1
Parent Company
Hyundai Motor
Company 97,598 - - 3,290 404 279 - - -
Other related
parties
Hyundai Capital 382 882 17,284 15,027 2,019 17,252 - - 116,922
Hyundai Life 2,385 114 - 20 3,738 (2) - - -
Kia Motor Company 47,570 - - - 4 59 - - -
Hyundai Auto Ever
Systems 3,262 - - 48 52,215 - 16 13,064 -
Hyundai Engineering 13 6 - - 7,312 - - - -
Others 2,775 792 720 513 6,300 1,739 3,160 - -
153,985 1,794 18,004 18,898 71,992 19,327 3,176 13,064 116,922
1 The carrying amount before disposal (before deducting provision for impairment) is
₩277,742 million.

38
(in millions of
Korean won) 2016
Income Expense Others
Card
income
Rental
income Others
Card
expense
Selling and
administrative
expenses Others
Purchase of
property
and
equipment
Purchase
of
intangible
assets
Disposal
of assets1
Parent Company
Hyundai Motor
Company 82,297 - - 5,890 283 269 - - -
Other related
parties
Hyundai Capital 895 707 14,869 10,731 1,951 19,161 - - 108,083
Hyundai Life 5,370 124 299 - 3,344 - - - -
Kia Motor Company 37,351 - - - 5 77 - - -
Hyundai Auto Ever
Systems 2,740 - - - 44,627 - - 3,057 -
Hyundai Construction 538 - - - 6 - 13,654 - -
Others 2,703 683 813 440 12,527 1,449 - - -
131,894 1,514 15,981 17,061 62,743 20,956 13,654 3,057 108,083
1 The carrying amount before disposal (before deducting provision for impairment) is
₩270,702 million.
Outstanding balances arising from sales/purchases of goods and services as at September
30, 2017 and December 31, 2016, are as follows:
(in millions of Korean won) September 30, 2017
Receivable Payable
Card
assets Others
Other
payables1
Others
Parent Company
Hyundai Motor Company 43,753 2,134 24,809 13,817
Other related parties
Hyundai Capital 45,152 550 1,706 645
Hyundai Life 1,397 68,570 22 27
Kia Motor Company 33,900 - 7,777 4,292
Hyundai Auto Ever Systems 5,541 - 3,183 2
Hyundai Engineering 2,534 - 6 -
Others 42,054 - 11,356 9,743
174,331 71,254 48,859 28,526
1 Dividends that have been declared but not paid during nine-month period ended
September 30, 2017, are included.

39
(in millions of Korean won) December 31, 2016
Receivable Payable
Card assets Others Other payables Others
Parent Company
Hyundai Motor Company 42,130 2,133 58,134 -
Other related parties
Hyundai Capital 94,813 561 1,912 645
Kia Motor Company 20,766 - 21,601 -
Hyundai Auto Ever Systems 7,737 140 7,877 2
Hyundai Life 1,773 71,029 66 84
Hyundai Construction 3,031 - - -
Others 37,157 - 17,268 506
207,407 73,863 106,858 1,237
Compensation for key management for the nine-month periods ended September 30, 2017
Short-term employee benefits 6,679 7,368
Post-employment benefits 1,546 1,489
8,225 8,857
There were no borrowing transactions with the related parties for the nine-month periods
ended September 30, 2017 and 2016.
There were no lending transactions with the related parties for the nine-month periods ended
September 30, 2017 and 2016.
There are no payment guarantees and collateral provided by the Group for the financial
supports to the related parties as at September 30, 2017 and no collateral and payment
guarantees are provided by the related parties.

40
25. Transfers of Financial Assets
The Parent Company transferred receivables to Privia 4th SPC, Privia 5th SPC, Super
Series 1st SPC, Super Series 2nd SPC, Super Series 3rd SPC and Super Series 4th SPC
(hereafter, “SPC”) in order to securitize assets. SPC issued subordinate asset-backed
securities with transferred receivables as underlying asset, and as the Parent Company is
providing credit reinforcement by acquiring such subordinate asset-backed securities, should
any impairment loss incurred in receivables belongs to the underlying asset, the risk
preferentially belongs to the Parent Company.
Transferred financial assets that are not derecognized in their entirety and the associated
liabilities as at September 30, 2017 and December 31, 2016, are as follows:
(in millions of Korean won) Asset-backed card assets
Carrying amount of assets1 4,561,447 4,253,225
Carrying amount of the associated liabilities 1,805,705 1,911,372
1 The amount is before provision for impairment.
As at September 30, 2017, the Group has issued its securitization liabilities with card assets
as an underlying asset, and the related securitization liabilities have the right of recourse
about the underlying assets. As at September 30, 2017, the fair value of financial assets
transferred but not eliminated is ₩ 4,572,186 million and the fair value of related liabilities is
₩ 1,902,014 million and net position is ₩ 2,670,172 million.
26. Offsetting Financial Assets and Financial Liabilities
The Group has entered into derivative contracts that include an International Swaps and
Derivatives Association ("ISDA") master netting agreements.
Generally, in such arrangements, all contracts that exist in the same currency are
consolidated into one net amount and paid from one party to the other. Also, in the event of a
credit event such as bankruptcy, all contracts existing under the agreement will be cleared,
the liquidating value will be assessed and all contracts will be settled on a net basis.
The ISDA arrangement does not meet the offset requirement in the consolidated financial
statements. The Group does not currently have legally enforceable right to set-off in
recognized assets and liabilities because the right to set-off cannot be exercised before a
credit event such as bankruptcy occurs.

41
The effects of netting agreements as at September 30, 2017 and December 31, 2016, are as
follows:
(in millions of
Korean won) September 30, 2017
Amounts not offset
Recognized
financial
assets and
liabilities
Gross
financial
assets and
liabilities
set off
Net amounts
presented in
the statement
of financial
position
Financial
instruments
Cash
collateral
received Net amounts
Financial assets
Derivative assets 6,524 - 6,524 716 - 5,808
Financial liabilities
Derivative liabilities 17,089 - 17,089 716 - 16,373
(in millions of
Korean won) December 31, 2016
Amounts not offset
Recognized
financial
assets and
liabilities
Gross
financial
assets and
liabilities
set off
Net amounts
presented in
the statement
of financial
position
Financial
instruments
Cash
collateral
received Net amounts
Financial assets
Derivative assets 81,927 - 81,927 1,323 - 80,604
Derivative liabilities 8,876 - 8,876 1,323 - 7,553

42
27. Fair Value of Financial Instruments
Fair value hierarchy classifications of the financial instruments that are subsequently
measured at fair value as at September 30, 2017 and December 31, 2016, are as follows:
(in millions of
Carrying
amount Fair value Level 1 Level 2 Level 3
Financial assets
Financial asset held
for trading 883,279 883,279 - 883,279 -
Derivative assets 6,524 6,524 - 6,524 -
Derivative liabilities 17,089 17,089 - 17,089 -
(in millions of
Carrying
amount Fair value Level 1 Level 2 Level 3
Financial assets
Financial asset held
for trading 934,411 934,411 - 934,411 -
Derivative assets 81,927 81,927 - 81,927 -
Derivative liabilities 8,876 8,876 - 8,876 -
Items that are measured at fair value or for which the fair value is disclosed are categorized
by the fair value hierarchy levels, and the defined levels are as follows:
Quoted prices (unadjusted) in active markets for identical assets or liabilities (Level 1).
All inputs other than quoted prices included in level 1 that are observable (either directly
that is, prices, or indirectly that is, derived from prices) for the asset or liability (Level 2).
Unobservable inputs for the asset or liability (Level 3).
There are no changes in fair value hierarchy level for the nine-month period ended
September 30, 2017.

43
The following table explains valuation techniques, fair value hierarchy, notable unobservable
inputs and extents, and the correlation between unobservable inputs and fair value
measurement used in Level 2 fair value measurement:
(in millions of
Korean won)
Classification
Fair value
Fair value
hierarchy
Valuation techniques
Range of
inputs
September
30, 2017
December
31, 2016
Financial assets at
fair value
through profit or
loss
Assets ₩ 883,279 ₩ 934,411 Level 2 The fair value is determined by
discounting the expected cash flows with
the market interest rate considering the
similar credit grade with the debt security
issuer.
N/A
Interest rate swap Assets 4,926 1,468 Level 2 Discount rates and forward rates used to
measure fair values of interest rate swap
are determined based on the applicable
constructed market-based yield curve.
The fair value is determined by offsetting
the discounted expected cash flows of
interest rate swap with the
aforementioned forward rates.
N/A
Liabilities 3,980 8,876
Currency swaps Assets 1,598 80,459 Level 2 Discount rates and forward rates used to
measure fair values of currency swaps
are determined based on the applicable
constructed market-based yield curve.
The trading base rate on the morning of
the report date is used as currency
swap’s exchange rate. The fair value is
determined by offsetting the discounted
expected cash flows of currency swap
with the aforementioned forward rates
and closing price.
N/A
Liabilities 13,109 -

44
The table below provides the fair value and Carrying amount of financial instruments that are
not measured subsequently at fair value in the consolidated interim statements of financial
position as at September 30, 2017 and December 31, 2016.
(in millions of
Korean won) September 30, 2017 December 31, 2016
Carrying
amount Fair value
Carrying
amount Fair value
Assets
Financial assets
Cash and deposits 1,308,797 1,308,797 594,019 594,019
Card assets 12,224,360 12,450,987 12,059,899 12,639,979
Other financial assets 165,695 165,695 151,897 151,897
13,698,852 13,925,479 12,805,815 13,385,895
Liabilities
Borrowings 2,610,000 2,603,330 1,515,000 1,502,843
Debentures 7,953,279 8,023,288 8,432,871 8,552,047
Other financial liabilities 1,434,345 1,434,345 1,455,883 1,455,883
11,997,624 12,060,963 11,403,754 11,510,773
The fair valuation techniques of the financial instruments measured at amortized cost are as
follows:
Valuation techniques
Cash and deposits The carrying amounts of cash and demand due from financial institutions and
payment due from financial institutions are reasonable approximation of fair
values. These financial instruments do not have a fixed maturity and are
receivable on demand. Fair value of ordinary due from financial institutions is
measured using DCF model. However, if the remaining maturity is short at the
reporting date, the carrying amount is regarded as fair value.
Card assets DCF model is used to determine the fair value of card assets. Fair value is
determined by discounting the expected cash flows, which are contractual cash
flows adjusted by the expected prepayment rate, at appropriate discount rate.
However, if the remaining maturity is short at the reporting date, the carrying
amount is regarded as fair value.
Other financial assets
(Leasehold deposits
provided)
DCF model is used to determine the fair value of other financial assets. Fair
value is determined by discounting the expected cash flows, which are
contractual cash flows, at appropriate discount rate. However, if the remaining
maturity is short at the reporting date, the carrying amount is regarded as fair
value.
Borrowings and
debenture
Fair value is calculated by DCF model at an appropriate interest rate for
respective range of maturity.
Other financial
liabilities (Leasehold
deposits received)
DCF model is used to determine the fair value of other financial liabilities. Fair
value is determined by discounting the expected cash flows, which are
contractual cash flows, at appropriate discount rate. However, if the remaining
maturity is short at the reporting date, the carrying amount is regarded as fair
value.

45
The table below provides the fair value hierarchy of financial instruments that are not
measured subsequently at fair value in the consolidated interim statements of financial
position as at September 30, 2017 and December 31, 2016.
(in millions of
Level 1 Level 2 Level 3 Total
Financial assets
Card assets - - 12,450,987 12,450,987
Leasehold deposits
provided - 33,284 - 33,284
- 33,284 12,450,987 12,484,271
Borrowings - 2,603,330 - 2,603,330
Debentures - 8,023,288 - 8,023,288
Other financial liabilities
Leasehold deposits
received - 9,128 - 9,128
- 10,635,746 - 10,635,746
(in millions of
Level 1 Level 2 Level 3 Total
Financial assets
Card assets - - 12,639,979 12,639,979
Leasehold deposits
provided - 34,100 - 34,100
- 34,100 12,639,979 12,674,079
Borrowings - 1,502,843 - 1,502,843
Debentures - 8,552,047 - 8,552,047
Other financial liabilities
Leasehold deposits
received - 9,472 - 9,472
- 10,064,362 - 10,064,362

46
The management of the Group anticipates that, except for the items described in the table
above, the carrying amount of the financial assets and liabilities measured at amortized cost
in the consolidated financial statements is similar to the fair value.
The table below provides the Group’s financial assets and financial liabilities that are carried
at cost as the fair values of the financial instruments are not readily determinable in the
consolidated interim statements of financial position as at September 30, 2017 and
December 31, 2016.
(in millions of Korean won) Description September 30, 2017 December 31, 2016
Securities
Available-for-sale financial
assets1
Unlisted equity
securities
1,767 1,767
1 Available-for-sale financial assets are recorded at cost as they do not have quoted prices in
an active market and the fair values are not reliably measured.
There are no significant changes in business or economic environment that affect fair values
of financial assets and liabilities held by the Group as at September 30, 2017.
28. Earnings per Share
Earnings per share for the three-month and nine-month periods ended September 30, 2017
(in Korean won) 2017 2016
Profit for the period (A) 51,121,453,016 181,925,740,196 58,706,083,139 153,584,407,463
Weighted average number of
ordinary shares outstanding (B) 160,465,286 160,465,286 160,465,286 160,465,286
Basic earnings per share (A/B) 319 1,134 366 957
There are no discontinued operations for the three-month and nine-month periods ended
September 30, 2017 and 2016, and as such, earnings per share are the same as earnings
per share from continuing operations.
Diluted earnings per share
As the Group has not issued any diluted shares, diluted earnings per share are same as
basic earnings per share for the three-month and nine-month periods ended September 30,
2017 and 2016.

47
29. Financial Risk Management
The Group is exposed to credit, liquidity and market risks (currency risk and interest rate
risk). In order to manage these factors, the Group operates risk management policies and
programs that monitor closely and respond to each of the risk factors. The Group uses
derivatives to manage market risks.
There was no significant change in the Group’s risk management division and policies after
December 31, 2016.
30. Capital Management
The Parent Company (specialized credit finance company) must maintain adjusted capital
adequacy ratio in accordance with Specialized Credit Financial Business Law and
subregulations, and the ratio for the credit card company must be more than 8 %. This ratio
is calculated by dividing adjusted capital with adjusted total assets and all factors are based
on separate financial statements. The Parent Company maintains an adjusted capital
adequacy ratio of more than 8%.
Details of adjusted capital adequacy ratio as at September 30, 2017 and December 31, 2016,
are as follows:
September 30,
2017
December 31,
2016
Adjusted total assets (A) 13,864,803 13,392,687
Adjusted total capital (B) 2,455,145 2,269,026
Adjusted capital adequacy ratio (B/A) 17.71% 16.94%

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