4 q18 audit_eng

Hyundai Card Co., Ltd. and
Subsidiaries
Consolidated Financial Statements
December 31, 2018 and 2017

Hyundai Card Co., Ltd. and Subsidiaries
Index
Page(s)
Independent Auditor’s Report .............................................................................. 1 - 3
Consolidated Financial Statements
Consolidated Statements of Financial Position ........................................................ 4 - 5
Consolidated Statements of Comprehensive Income................................................ 6
Consolidated Statements of Changes in Equity......................................................... 7
Consolidated Statements of Cash Flows................................................................... 8
Notes to the Consolidated Financial Statements ................................................ 9 - 100

Independent Auditor’s Report
(English Translation of a Report Originally Issued in Korean)
To the Board of Directors and Shareholders of
Hyundai Card Co., Ltd.
Opinion
We have audited the accompanying consolidated financial statements of Hyundai Card Co., Ltd. and its
subsidiaries (collectively referred to as the "Group"), which comprise the consolidated statements of
financial position as at December 31, 2018 and 2017, and the consolidated statements of comprehensive
income, consolidated statements of changes in equity and consolidated statements of cash flows for the
years then ended, and notes to the consolidated financial statements, including a summary of significant
accounting policies.
In our opinion, the accompanying consolidated financial statements present fairly, in all material respects,
the consolidated financial position of the Group as at December 31, 2018 and 2017, and its consolidated
financial performance and its consolidated cash flows for the years then ended in accordance with
International Financial Reporting Standards as adopted by the Republic of Korea (Korean IFRS).
Basis for Opinion
We conducted our audits in accordance with Korean Standards on Auditing. Our responsibilities under
those standards are further described in the Auditor’s Responsibilities for the Audit of the Consolidated
Financial Statements section of our report. We are independent of the Group in accordance with the
ethical requirements of the Republic of Korea that are relevant to our audit of the consolidated financial
statements and we have fulfilled our other ethical responsibilities in accordance with the ethical
requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to
provide a basis for our audit opinion.
Other matter
Auditing standards and their application in practice vary among countries. The procedures and practices
used in the Republic of Korea to audit such financial statements may differ from those generally accepted
and applied in other countries.
Responsibilities of Management and Those Charged with Governance for the Consolidated
Financial Statements
Management is responsible for the preparation and fair presentation of the consolidated financial
statements in accordance with Korean IFRS, and for such internal control as management determines is
necessary to enable the preparation of consolidated financial statements that are free from material
misstatement, whether due to fraud or error.
In preparing the consolidated financial statements, management is responsible for assessing the Group’s

2
ability to continue as a going concern, disclosing, as applicable, matters related to going concern and
using the going concern basis of accounting unless management either intends to liquidate the Group or
to cease operations.
Those charged with governance are responsible for overseeing the Group’s financial reporting process.
Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements
Our objectives are to obtain reasonable assurance about whether the consolidated financial statements
as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s
report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a
guarantee that an audit conducted in accordance with Korean Standards on Auditing will always detect a
material misstatement when it exists. Misstatements can arise from fraud or error and are considered
material if, individually or in the aggregate, they could reasonably be expected to influence the economic
decisions of users taken on the basis of these consolidated financial statements.
As part of an audit in accordance with Korean Standards on Auditing, we exercise professional judgment
and maintain professional skepticism throughout the audit. We also:
Ÿ Identify and assess the risks of material misstatement of the consolidated financial statements,
whether due to fraud or error, design and perform audit procedures responsive to those risks,
and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion.
The risk of not detecting a material misstatement resulting from fraud is higher than for one
resulting from error, as fraud may involve collusion, forgery, intentional omissions,
misrepresentations, or the override of internal control.
Ÿ Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of the entity's internal control.
Ÿ Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by management.
Ÿ Conclude on the appropriateness of management’s use of the going concern basis of accounting
and, based on the audit evidence obtained, whether a material uncertainty exists related to
events or conditions that may cast significant doubt on the Group’s ability to continue as a going
concern. If we conclude that a material uncertainty exists, we are required to draw attention in
our auditor’s report to the related disclosures in the consolidated financial statements or, if such
disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit
evidence obtained up to the date of our auditor’s report. However, future events or conditions
may cause the Group to cease to continue as a going concern.
Ÿ Evaluate the overall presentation, structure and content of the consolidated financial statements,
including the disclosures, and whether the consolidated financial statements represent the
underlying transactions and events in a manner that achieves fair presentation.
Ÿ Obtain sufficient appropriate audit evidence regarding the financial information of the entities or
business activities within the Group to express an opinion on the consolidated financial

3
statements. We are responsible for the direction, supervision and performance of the Group
audit. We remain solely responsible for our audit opinion.
We communicate with those charged with governance regarding, among other matters, the planned
scope and timing of the audit and significant audit findings, including any significant deficiencies in
internal control that we identify during our audit.
Seoul, Korea
March 4, 2019
This report is effective as of March 4, 2019, the audit report date. Certain subsequent events or
circumstances, which may occur between the audit report date and the time of reading this report,
could have a material impact on the accompanying consolidated financial statements and notes
thereto. Accordingly, the readers of the audit report should understand that there is a possibility that
the above audit report may have to be revised to reflect the impact of such subsequent events or
circumstances, if any.

Consolidated Statements of Financial Position
(in Korean won) Notes
Assets
Cash and deposits 5,29,30,31,35
Cash and cash equivalents ￦ 866,456,158,726 ￦ 654,412,163,620
Deposits 81,020,600,000 50,524,500,000
947,476,758,726 704,936,663,620
Securities 6,29,30,31
Financial assets at fair value through profit or loss 1,062,236,051,228 -
Financial assets at fair value through other comprehensive income 1,483,575,000 -
Short-term trading financial assets - 993,465,595,038
Available-for-sale financial assets - 1,766,969,764
1,063,719,626,228 995,232,564,802
Card assets 7,8,29,30,31
Card receivables 8,944,174,092,584 8,721,173,547,767
Provision for impairment (136,445,744,103) (84,338,059,074)
Short-term card loan 672,551,582,786 847,331,862,963
Long-term card loan 3,760,950,975,776 3,486,474,567,478
12,978,385,812,653 12,757,825,137,234
Loan receivables 7,8,29,30,31
Loan receivables 20,237,677,918 -
Provision for impairment (1,117,573,780) -
19,120,104,138 -
Property and equipment 10,34
Land 139,408,257,581 141,135,593,407
Buildings 148,387,377,420 153,112,422,428
Accumulated depreciation (21,396,434,154) (18,378,711,180)
Vehicles 2,514,088,391 2,514,088,391
Accumulated depreciation (794,289,535) (624,373,518)
Fixtures and equipment 242,327,218,894 220,299,985,094
Accumulated depreciation (175,774,946,955) (143,375,835,685)
Construction in progress 3,599,566,560 672,620,703
338,270,838,202 355,355,789,640
Assets held for sale 9
Land 1,727,335,826 -
Buildings 3,975,627,372 -
5,702,963,198 -
Other assets
Other receivables 30,31 98,918,681,647 84,796,316,310
Provision for impairment (262,506,636) (458,287,634)
Accrued revenue 30,31 48,589,739,174 50,969,812,148
Advance payments 29,862,799,219 30,246,334,975
Provision for impairment (197,016,013) (216,102,073)
Prepaid expenses 122,876,559,542 120,245,563,892
Intangible assets 11,34 106,586,305,737 124,100,132,534
Derivative assets 16,30,31,33 2,793,189,773 10,002,954,866
Deferred tax assets 27 147,563,840,293 145,821,706,670
Guarantee deposits provided 5,29,30 32,713,839,922 33,703,463,766
Others 5,758,089,606 5,435,182,572
593,103,852,396 603,146,636,549
Total assets ￦ 15,945,779,955,541 ￦ 15,416,496,791,845
20172018
4

Consolidated Statements of Financial Position
(in Korean won)
Liabilities
Borrowings 12,29,30,31
Borrowings ￦ 3,015,000,000,000 ￦ 2,535,000,000,000
Debentures 7,498,362,444,609 7,610,236,853,058
10,513,362,444,609 10,145,236,853,058
Other liabilities
Other payables 29,30,31,34 1,312,587,488,460 1,385,784,959,853
Accrued expenses 29,30,31 161,108,908,877 220,571,277,243
Unearned revenue 14 363,515,010,711 346,812,832,289
Withholdings 29,30,31 209,863,467,921 186,341,825,335
Derivative liabilities 16,29,30,31,33 46,799,148,674 99,233,725,250
Current tax liabilities 24,283,650,805 46,593,089,060
Deferred tax liabilities 27 5,688,074 -
Net employee benefit liabilities 13 1,449,519,669 9,123,887,095
Guarantee deposits received 29,30 9,997,529,270 9,368,668,603
Provisions 15,36 111,699,625,804 97,053,617,960
2,241,310,038,265 2,400,883,882,688
Total liabilities 12,754,672,482,874 12,546,120,735,746
Equity
Share capital 17 802,326,430,000 802,326,430,000
Reserves 18 57,704,443,955 57,704,443,955
Hybrid securities 19 299,239,980,000 -
Accumulated other comprehensive income 21 (23,455,255,045) (6,182,687,024)
Retained earnings 20 2,055,291,873,757 2,016,527,869,168
Total equity 3,191,107,472,667 2,870,376,056,099
Total liabilities and equity ￦ 15,945,779,955,541 ￦ 15,416,496,791,845
The above consolidated statements of financial position should be read in conjunction with the accompanying notes.
The consolidated statement of financial position as at December 31, 2017
has been prepared in accordance with Korea IFRS 1039, the previous standard.
2018 2017
5

Consolidated Statements of Comprehensive Income
Years Ended December 31, 2018 and 2017
Notes
Operating income
Card income 23,30,34 1,261,399,055,128 1,730,337,191,815
Effective interest method interest income 24,30 1,078,477,471,359 1,023,259,230,626
Gain on valuation and disposal of securities 30 1,661,371,460 947,960,760
Dividend income 30 496,178,118 162,417,126
Decrease in provision for unused credit limits 15 9,933,273,463 2,777,160,020
Other operating income 25,30 137,635,197,280 263,287,569,319
2,489,602,546,808 3,020,771,529,666
Operating expenses
Card expenses 23,30,34 889,924,409,251 1,372,268,397,457
Interest expenses 24,30 260,120,217,311 244,379,896,244
Selling and administrative expenses 13,26,34 753,151,006,416 717,158,526,509
Securitization expenses 765,965,983 625,766,405
Impairment losses 8,30 117,196,352,341 82,811,911,187
Loss on disposal of loan receivables 30 163,693,162,571 150,381,957,266
Loss on valuation and disposal of securities 30 91,223,200 -
Other operating expenses 25,30 102,346,748,787 194,402,903,449
2,287,289,085,860 2,762,029,358,517
Operating profit 202,313,460,948 258,742,171,149
Non-operating income
Gain on disposal of property and equipment, and intangible assets 541,513,751 35,082,883
Rental income 34 3,412,735,477 3,432,893,361
Miscellaneous gain 826,850,882 2,291,319,446
4,781,100,110 5,759,295,690
Non-operating expenses
Loss on disposal of property and equipment, and intangible assets 2,529,302,592 766,394,066
Donations 3,930,585,562 4,848,087,071
Miscellaneous losses - 49,680,320
6,459,888,154 5,664,161,457
Profit before income tax expense 200,634,672,904 258,837,305,382
Income tax expense 27 50,812,413,431 67,272,391,443
Profit for the year 149,822,259,473 191,564,913,939
Other comprehensive income 20
Items that will not be reclassified to profit or loss
Remeasurements of net defined benefit liabilities 2,889,599,165 5,728,118,220
Items that may be subsequently reclassified to profit or loss
Cash flow hedges (20,162,167,186) 16,662,330,211
(17,272,568,021) 22,390,448,431
Total comprehensive income for the year 132,549,691,452 213,955,362,370
Earnings per share 28
Basic earnings per share 891 1,194
Diluted earnings per share 891 1,194
(in Korean won) 20172018
The consolidated statement of comprehensive income for the year ended December 31, 2017
The above consolidated statements of comprehensive income should be read in conjunction with the accompanying notes.
6

Consolidated Statements of Changes in Equity
(in Korean won)
Balance at January 1, 2017 802,326,430,000 45,399,364,539 12,305,079,416 - (28,573,135,455) 1,862,351,366,867 2,693,809,105,367
Dividends paid 　- 　- 　- 　- - (37,388,411,638) (37,388,411,638)
Total comprehensive income
Profit for the year 　- 　- 　- 　- 　- 191,564,913,939 191,564,913,939
Other comprehensive income
Remeasurements of net defined benefit liabilities 　- 　- 　- 　- 5,728,118,220 　- 5,728,118,220
Cash flow hedges 　- 　- 　- 　- 16,662,330,211 　- 16,662,330,211
Balance at December 31, 2017 802,326,430,000 45,399,364,539 12,305,079,416 - (6,182,687,024) 2,016,527,869,168 2,870,376,056,099
Balance at January 1, 2018 802,326,430,000 45,399,364,539 12,305,079,416 　- (6,182,687,024) 2,016,527,869,168 2,870,376,056,099
Changes in accounting policies - - - - - (84,783,531,365) (84,783,531,365)
Restated total equity at the beginning of the financial year 802,326,430,000 45,399,364,539 12,305,079,416 - (6,182,687,024) 1,931,744,337,803 2,785,592,524,734
Dividends paid 　- 　- 　- 　- 　- (19,416,299,606) (19,416,299,606)
Total comprehensive income
Profit for the year 　- 　- 　- 　- - 149,822,259,473 149,822,259,473
Other comprehensive income
Remeasurements of net defined benefit liabilities 　- 　- 　- - 2,889,599,165 - 2,889,599,165
Cash flow hedges 　- 　- 　- - (20,162,167,186) 　- (20,162,167,186)
Transactions with shareholders recognized directly in equity
Issuance of hybrid securities - - - 299,239,980,000 - - 299,239,980,000
Distribution from hybrid securities - - - - - (6,858,423,913) (6,858,423,913)
Balance at December 31, 2018 802,326,430,000 45,399,364,539 12,305,079,416 299,239,980,000 (23,455,255,045) 2,055,291,873,757 3,191,107,472,667
The consolidated statement of changes in equity for year ended December 31, 2017 has been prepared in accordance with Korea IFRS 1039, the previous standard.
The above consolidated statements of changes in equity should be read in conjunction with the accompanying notes.
capital
Share
premium
Share Hybrid
securities Total
AccumulatedReserves
Other
reserves earnings
Retainedother
comprehensive income
7

Consolidated Statements of Cash Flows
(in Korean won) Note
Cash flows from operating activities
Cash generated from (provided by) operating activities 35 (2,231,134,483) 144,465,702,755
Interests received 27,573,516,432 20,909,505,744
Interests paid (268,190,885,572) (264,488,398,746)
Dividends received 496,178,118 162,417,126
Income taxes paid (42,460,351,690) (62,462,995,480)
Net cash outflow from operating activities (284,812,677,195) (161,413,768,601)
Cash flows from investing activities
Acquisition of financial assets at fair value through profit or loss (4,943,825,000) -
Disposal of financial assets at fair value through profit or loss 30,289,700 -
Disposal of available-for-sale financial assets - 22,439,400
Net decrease in guarantee deposits provided 989,623,844 396,206,490
Disposal of property and equipment 986,441,682 307,641,756
Disposal of intangible assets 2,993,235,886 19,534,000
Acquisition of property and equipment (30,498,675,011) (30,345,845,433)
Acquisition of intangible assets (35,518,449,771) (34,007,997,055)
Net cash outflow from investing activities (65,961,358,670) (63,608,020,842)
Cash flows from financing activities 35
Proceeds from borrowings 2,955,000,000,000 1,545,000,000,000
Proceeds from issue of debentures 12,207,919,352,881 11,938,512,879,156
Repayment of borrowings (2,475,000,000,000) (525,000,000,000)
Repayment of debentures (12,401,400,002,304) (12,586,485,000,000)
Dividends paid (19,416,299,606) (37,388,411,638)
Issuance of hybrid securities 299,239,980,000 -
Distribution from hybrid securities (3,525,000,000) -
Net cash inflow from financing activities 562,818,030,971 334,639,467,518
Net increase in cash and cash equivalents 212,043,995,106 109,617,678,075
Cash and cash equivalents at the beginning of the year 35 654,412,163,620 544,794,485,545
Cash and cash equivalents at the end of the year 35 866,456,158,726 654,412,163,620
The consolidated statement of cash flows for the year ended December 31, 2017
The above consolidated statements of cash flows should be read in conjunction with the accompanying notes.
2018 2017
8

Notes to the Consolidated Financial Statements
9
1. General Information
Hyundai Card Co., Ltd. (the Company or the Parent Company), which is a controlling company
in accordance with Korean International Financial Reporting Standards (“Korean IFRS”) 1110
Consolidated Financial Statements, is engaged in the credit card business with its
headquarters located at 3, Uisadang-daero, Yeongdeungpo-gu, Seoul. On June 15, 1995, the
Company acquired the credit card business of Korea Credit Circulation Co., Ltd., and on June
16, 1995, the Korean government granted permission to the Company to engage in the credit
card business. The Company operates its business under the Specialized Credit Financial
Business Act and other relevant applicable regulations.
As at December 31, 2018, the Company has approximately 7.61 million card members, 2.60
million registered merchants, and 58 marketing centers and branches.
As at December 31, 2018, the total ordinary shares of the Company is ￦802,326 million after
several capital increase and retirement of treasury shares. The shareholders as at December
31, 2018 and 2017, are as follows:
December 31, 2018 December 31, 2017
Number of
shares
Percentage of
ownership
(%)
Number of
shares
Percentage of
ownership
(%)
Hyundai Motor Co., Ltd. 59,301,937 36.96% 59,301,937 36.96%
Kia Motors Co., Ltd. 18,422,142 11.48% 18,422,142 11.48%
Hyundai Commercial Inc. 39,378,026 24.54% 39,378,026 24.54%
Consumer Preferred Choice Limited 16,046,527 9.99% 16,046,527 9.99%
Complete Logistic Solutions Limited 14,441,876 9.00% 14,441,876 9.00%
AlpInvest Partners Co-Investments 2015
I SPV B.V. 7,101,393 4.43% 7,101,393 4.43%
AlpInvest Partners Co-Investments 2015
II SPV B.V. 707,652 0.44% 707,652 0.44%
AlpInvest Mich SPV B.V. 214,221 0.14% 214,221 0.14%
Others 4,851,512 3.02% 4,851,512 3.02%
160,465,286 100.00% 160,465,286 100.00%

10
2. Basis of Consolidated Financial Statements Preparation and Significant Accounting
Policies
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 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 financial statements.
2.1 Basis of consolidated financial statements preparation
The Company and its subsidiaries (the “Group”) have prepared the consolidated financial
statements in accordance with K-IFRS.
The principal accounting policies are set out below. Except for the effect of the amendments
to K-IFRSs and new interpretations set out below, the principal accounting policies used to
prepare the consolidated financial statements as at and for the year ended December 31, 2018,
are consistent with the accounting policies used to prepare the consolidated financial
statements as of and for the year ended December 31, 2017.
The accompanying consolidated financial statements have been prepared on the historical
cost basis, except for certain non-current assets and financial instruments that are measured
at fair values, as explained in the accounting policies below. Historical cost is generally based
on the fair values of the consideration given.
2.2 New and amended standards adopted by the Group
The Group has applied the following standards and amendments for the first time for their
annual reporting period commencing January 1, 2018.
- Amendments to Korean IFRS 1028 Investments in Associates and Joint Ventures
When an investment in an associate or a joint venture is held by, or is held indirectly through,
an entity that is a venture capital organization, or a mutual fund, unit trust and similar entities
including investment-linked insurance funds, the entity may elect to measure that investment
at fair value through profit or loss in accordance with Korean IFRS 1109. The amendments
clarify that an entity shall make this election separately for each associate of joint venture, at
initial recognition of the associate or joint venture. The amendment does not have a significant
impact on the financial statements because the Group is not a venture capital organization.
- Amendments to Korean IFRS 1040 Transfers of Investment Property

11
Paragraph 57 of Korean IFRS 1040 clarifies that a transfer to, or from, investment property,
including property under construction, can only be made if there has been a change in use
that is supported by evidence, and provides a list of circumstances as examples. The
amendment does not have a significant impact on the financial statements.
- Amendments to Korean IFRS 1102 Share-based Payment
Amendments to Korean IFRS 1102 clarify accounting for a modification to the terms and
conditions of a share-based payment that changes the classification of the transaction from
cash-settled to equity-settled. Amendments also clarify that the measurement approach
should treat the terms and conditions of a cash-settled award in the same way as for an equity-
settled award. The amendment does not have a significant impact on the financial statements.
- Enactment of Korean IFRS 2122 Foreign Currency Transaction and Advance
Consideration
According to the enactment, the date of the transaction for the purpose of determining the
exchange rate to use on initial recognition of the related asset, expense or income (or part of
it) is the date on which an entity initially recognizes the non-monetary asset or non-monetary
liability arising from the payment or receipt of advance consideration. The enactment does not
have a significant impact on the financial statements.
- Enactment of Korean IFRS 1109 Financial Instruments
The Group has applied Korean IFRS 1109 Financial Instruments on January 1, 2018, the date
of initial application. In accordance with the transitional provisions in Korean IFRS 1109,
comparative figures have not been restated, and the differences between previous book
amounts and book amounts at the date of initial application are recognized to retained earnings.
See Note 40 for further details on the impact of the application of the standard.
- Enactment of Korean IFRS 1115 Revenue from Contracts with Customers
The Group has elected to apply Korean IFRS 1115 Revenue from Contracts with Customers.
In accordance with the transition provisions in Korean IFRS 1115, comparative figures have
not been restated. See Notes 23 and 40 for further details on the impact of the application of
the standard.
2.3 New standards and interpretations not yet adopted by the Group
Certain new accounting standards and interpretations that have been published that are not
mandatory for annual reporting period commencing January 1, 2018 and have not been early
adopted by the Group are set out below.
- Enactment of Korean IFRS 1116 Leases
Korean IFRS 1116 Leases issued on May 22, 2017 is effective for annual periods beginning

12
on or after January 1, 2018, with early adoption permitted. This standard will replace Korean
IFRS 1017 Leases. The Group will apply the standards for annual periods beginning on or
after January 1, 2019.
Under the new standard, with implementation of a single lease model, lessee is required to
recognize assets and liabilities for all lease which lease term is 12 months or more and
underlying assets are not low value assets. A lessee is required to recognize a right-of-use
asset and a lease liability representing its obligation to make lease payments.
The Group performed an impact assessment to evaluate financial impacts of applying Korean
IFRS 1116 on the financial statements of the reporting period in which the Company first
applies the Standard. The assessment is based on current situation and available information
as at the initial application date.
The total minimum lease payment expected to be paid by the Group in relation to operating
leases before discounted to their present value is 59,168 million. When the payment is
discounted at incremental borrowing rate of the lessee, the total minimum lease payment
amounts to 54,441 million.
- Enactment of Korean IFRS 1109 Financial Instruments
The narrow-scope amendments made to Korean IFRS 1109 Financial Instruments enable
entities to measure certain prepayable financial assets with negative compensation at
amortized cost. When a modification of a financial liability measured at amortized cost that
does not result in the derecognition, a modification gain or loss shall be recognized in profit or
loss. These amendments will be applied for annual periods beginning on or after January 1,
2019, with early adoption permitted.
- Amendments to Korean IFRS 1019 Employee Benefits
The amendments require that an entity shall calculate current service cost and net interest for
the remainder of the reporting period after a plan amendment, curtailment or settlement based
on updated actuarial assumptions from the date of the change. The amendments also require
that a reduction in a surplus must be recognized in profit or loss even if that surplus was not
previously recognized because of the impact of the asset ceiling. The amendments are
effective for plan amendments, curtailments and settlements occurring in reporting periods
that begin on or after January 1, 2019.
- Amendments to Korean IFRS 1028 Investments in Associates and Joint Ventures
The amendments clarify that an entity shall apply Korean IFRS 1109 to financial instruments
in an associate or joint venture to which the equity method is not applied. These include long-
term interests that, in substance, form part of the entity’s net investment in an associate or
joint venture. These amendments will be applied for annual periods beginning on or after
January 1, 2019, with early adoption permitted. In accordance with the transitional provisions
in Korean IFRS 1109, the restatement of the comparative information is not required and the

13
cumulative effects of initially applying the amendments retrospectively should be recognized
in the beginning balance of retained earnings at the date of initial application.
- Enactment to Interpretation of Korean IFRS 2123 Uncertainty over Income Tax Treatments
The Interpretation explains how to recognize and measure deferred and current income tax
assets and liabilities where there is uncertainty over a tax treatment, and includes guidance
on how to determine whether each uncertain tax treatment is considered separately or
together. It also presents examples of circumstances where a judgement or estimate is
required to be reassessed. This Interpretation will be applied for annual periods beginning on
or after January 1, 2019, and an entity can either restate the comparative financial statements
retrospectively or recognize the cumulative effect of initially applying the Interpretation as an
adjustment in the beginning balance at the date of initial application.
- Amendments to Korean IFRS 1103 Business Combination
The amendments clarify that when a party to a joint arrangement obtains control of a business
that is a joint operation, and had rights to the assets and obligations for the liabilities relating
to that joint operation immediately before the acquisition date, the transaction is a business
combination achieved in stages. In such cases, the acquirer shall remeasure its entire
previously held interest in the joint operation. These amendments will be applied to business
combinations for which the acquisition date is on or after the beginning of the first annual
reporting period beginning on or after January 1, 2019, with early adoption permitted.
- Amendments to Korean IFRS 1111 Joint Agreements
The amendments clarify that when a party that participates in, but does not have joint control
of, a joint operation might obtain joint control of the joint operation in which the activity of the
join operation constitues a business. In such cases, previously held interests in the joint
operation are not remeasured. These amendments will be applied to transactions in which an
entity obtains joint control on or after the beginning of the first annual reporting period
beginning on or after January 1, 2019, with early adoption permitted.
- Amendments to Paragraph 57A of Korean IFRS 1012 Income Tax
The amendement is applied to all the income tax consequences of dividends and requires an
entity to recognize the income tax consequences of dividends in profit or loss, other
comprehensive income or equity according to where the entity originally recognized those past
transactions or events. These amendments will be applied for annual reporting periods
beginning on or after January 1, 2019, with early adoption permitted.
- Amendments to Korean IFRS 1023 Borrowing Costs
The amendments clarify that if a specific borrowing remains outstanding after the related
qualifying asset is ready for its intended use (or sale), it becomes part of general borrowings.
These amendments will be applied to borrowing costs incurred on or after the beginning of the

14
first annual reporting period beginning on or after January 1, 2019, with early adoption
permitted.
2.4 Significant Accounting Policies
1) Basic of consolidation
The consolidated financial statements incorporate the financial statements of the Company
and entities (including structured entities) controlled by the Parent Company (and its
subsidiaries). Control is achieved where the Group 1) has the power over the investee; 2) is
exposed, or has rights, to variable returns from its involvement with the investee; and 3) has
the ability to use its power to affect its returns. The Group reassesses whether or not it controls
an investee if facts and circumstances indicate that there are changes to one or more of the
three elements of control listed above.
When the Group has less than a majority of the voting rights of an investee, it has power over
the investee when the voting rights are sufficient to give it the practical ability to direct the
relevant activities of the investee unilaterally. The Group considers all relevant facts and
circumstances in assessing whether or not the Group’s voting rights in an investee are
sufficient to give it power, including:
Ÿ the size of the Group’s holding of voting rights relative to the size and dispersion of
holdings of the other vote holders;
Ÿ potential voting rights held by the Group, other vote holders or other parties;
Ÿ rights arising from other contractual arrangements; and
Ÿ any additional facts and circumstances that indicate the Group has, or does not have,
the current ability to direct the relevant activities at the time decisions need to be made,
including voting patterns at previous shareholders’ meetings.
Income and expenses of subsidiaries acquired or disposed of during the year are included in
the consolidated statements of comprehensive income from the effective date of acquisition
to the effective date of disposal, as appropriate. Carrying amounts of the non-controlling
interests in subsidiaries are adjusted with the changes in the proportion of the equity held by
non-controlling interests after initial acquisition of non-controlling interests. Total
comprehensive income of subsidiaries is attributed to the owners of the Group and to the non-
controlling interests even if this results in the non-controlling interests having a deficit balance.
When necessary, adjustments are made to the financial statements of subsidiaries to bring
their accounting policies in line with those used by the Group.
All intragroup transactions, balances, income and expenses are eliminated in full on
consolidation.
When the Parent Company loses control of a subsidiary, the profit or loss on disposal is
calculated as the difference between (i) the aggregate of the fair value of the consideration
received and the fair value of any retained interest and (ii) the previous carrying amount of the
assets (including goodwill) and liabilities of the subsidiary and any non-controlling interests.

15
When assets of the subsidiary are carried at revalued amounts or fair values and the related
cumulative gain or loss has been recognized in other comprehensive income and accumulated
in equity, the amounts previously recognized in other comprehensive income and accumulated
in equity are accounted for as if the Parent Company had directly disposed of the relevant
assets (i.e., reclassified to profit or loss or transferred directly to retained earnings). The fair
value of any investment retained in the former subsidiary at the date when control is lost is
recognized as the fair value on initial recognition for subsequent accounting under K-IFRS
1039 or, when applicable, the cost on initial recognition of an investment in an associate or a
jointly controlled entity.
2) Card assets and Loan receivables
Card assets and loan receivables are amounts due from customers for services performed in
the ordinary course of business. Card assets and loan receivables are initially measured at
fair value, including direct transaction cost; thereafter, they are measured at amortized cost
using the effective interest rate method, except for the financial assets classified as at fair
value through profit or loss.
(a) Card receivables
The Group records card receivables when its cardholders make purchases from domestic and
foreign merchants, and when cardholders of MasterCard International, Visa International and
Diners Club International make purchases from domestic merchants. Commission from
merchants for advance payments and commission from cardholders for installment payments
and cash advances are recognized as revenue on an accrual basis. Card receivables with
non-interest-bearing installment payment are initially recognized at fair value using a
discounted cash flow (“DCF”). As interest rate and other factors that are considered for
calculating the DCF of interest-bearing installment payments are different than those for non-
interest-bearing installment payment, the Group independently determines the discount rates
for non-interest-bearing installment payments using objective and reasonable method.
(b) Short-term card loan
The Group provides the short-term card loan to its cardholders in accordance with the
Specialized Credit Financial Business Law. Commission incomes are accrued on a daily basis
based on a constant rate per cardholders’ credit rate until repayments of short-term card loan.
(c) Long-term card loan
The Group provides the long-term card loan to its cardholders in accordance with the
Specialized Credit Financial Business Law. Commission incomes are accrued on a daily basis
based on a constant rate per cardholders’ credit rate until repayments of long-term card loan.

16
(d) Loan receivables
The Group provides the credit loans and others in accordance with the Specialized Credit
Financial Business Law. Commission incomes are accrued on a daily basis based on a
constant rate until repayments of credit loans.
3) Financial Assets
(a) Classification
From January 1, 2018, the Group classifies its financial assets in the following measurement
categories:
Ÿ those to be measured at fair value through profit or loss
Ÿ those to be measured at amortized cost.
The classification depends on the Group’s business model for managing the financial assets
and the contractual terms of the cash flows. For financial assets measured at fair value, gains
and losses will either be recorded in profit or loss or other comprehensive income. For
investments in debt instruments, this will depend on the business model in which the
investment is held. The Group reclassifies debt investments when, and only when its business
model for managing those assets changes.
For investments in equity instruments that are not held for trading, this will depend on whether
the Group has made an irrevocable election at the time of initial recognition to account for the
equity investment at fair value through other comprehensive income.
(b) Measurement
At initial recognition, the Group measures a financial asset at its fair value plus, in the case of
a financial asset not at fair value through profit or loss, transaction costs that are directly
attributable to the acquisition of the financial asset or the issuance of financial liabilities.
Transaction costs of financial assets carried at fair value through profit or loss are expensed
in profit or loss. Financial assets with embedded derivatives are considered in their entirety
when determining whether their cash flows are solely payment of principal and interest.
(i) Debt instruments
Subsequent measurement of debt instruments depends on the Group’s business model for
managing the asset and the cash flow characteristics of the asset. The Group classifies its
debt instruments into one of the following three measurement categories:
Ÿ Amortized cost: Assets that are held for collection of contractual cash flows where
those cash flows represent solely payments of principal and interest are measured
at amortized cost. A gain or loss on a debt investment that is subsequently measured
at amortized cost and is not part of a hedging relationship is recognized in profit or

17
loss when the asset is derecognized or impaired. Interest income from these financial
assets is included in ‘finance income’ using the effective interest rate method.
Ÿ Fair value through other comprehensive income: Assets that are held for collection
of contractual cash flows and for selling the financial assets, where the assets’ cash
flows represent solely payments of principal and interest, are measured at fair value
through other comprehensive income. Movements in the carrying amount are taken
through other comprehensive income, except for the recognition of impairment loss
(reversal of impairment loss), interest income and foreign exchange gains and losses
which are recognized in profit or loss. When the financial asset is derecognized, the
cumulative gain or loss previously recognized in other comprehensive income is
reclassified from equity to profit or loss. Interest income from these financial assets
is included in ‘finance income’ using the effective interest rate method. Foreign
exchange gains and losses are presented in ‘gain and loss on foreign currency
valuation and transactions’ are presented in ‘gain and loss on valuation and disposal
of securities’.
Ÿ Fair value through profit or loss: Assets that do not meet the criteria for amortized
cost or fair value through other comprehensive income are measured at fair value
through profit or loss. A gain or loss on a debt investment that is subsequently
measured at fair value through profit or loss and is not part of a hedging relationship
is recognized in profit or loss and presented net in the statement of profit or loss
within ‘gain and loss on valuation and disposal of securities’ in the year in which it
arises.
(ii) Equity instruments
The Group subsequently measures all equity investments at fair value. Where the Group’s
management has elected to present fair value gains and losses on equity investments in other
comprehensive income, there is no subsequent reclassification of fair value gains and losses
to profit or loss following the derecognition of the investment. Dividend income from such
investments continue to be recognized in profit or loss as ‘other income’ when the right to
receive payments is established.
Changes in the fair value of financial assets at fair value through profit or loss are recognized
in ‘gain and loss on valuation and disposal of securities’ in the statement of profit or loss as
applicable. Impairment loss (reversal of impairment loss) on equity investments measured at
fair value through other comprehensive income are not reported separately from other
changes in fair value.

18
(c) Impairment
The Group assesses on a forward looking basis the expected credit losses associated with its
debt instruments carried at amortized cost and fair value through other comprehensive income.
The impairment methodology applied depends on whether there has been a significant
increase in credit risk.
4) Assets held for sale
Non-current assets, or disposal groups comprising assets and liabilities, that are expected to
be recovered primarily through sale rather than continuing use, are classified as held for sale.
The asset (or disposal group) must be available for immediate sale in its present condition
subject only to terms that are usual and customary for sales of such assets (or disposal groups)
and its sale must be highly probable. The assets (or assets and liabilities) are measured at the
lower of its carrying amount and fair value less costs to sell when they are classified as held
for sale. For decrease in fair value less costs to sell of the assets, impairment losses are
recognized as profit or loss as at the initial classification and for increase in fair value less
costs to sell of the assets, gains are recognized as profit or loss to the extent of the cumulative
impairment losses that have been recognized.
5) Property and equipment
Property and equipment are stated at cost, less subsequent accumulated depreciation and
accumulated impairment losses. The cost of an item of property and equipment is directly
attributable to its purchase or construction, which includes any costs directly attributable to
bringing the asset to the location and condition necessary for it to be capable of operating in
the manner intended by management. It also includes the initial estimate of the costs of
dismantling and removing the item and restoring the site on which it is located.
Subsequent costs are recognized in the carrying amount of an asset or as a separate asset if
it is probable that future economic benefits associated with the assets will flow into the Group
and the cost of an asset can be measurable. Routine maintenance and repairs are expensed
as incurred.
The Group does not depreciate land. Depreciation expense is computed using the straight-
line method based on the estimated useful lives of the assets as follows:
Useful lives
Buildings 40 years
Fixtures and equipment 4 years
Vehicles 4 years
Each part of property and equipment with a cost that is significant in relation to the total cost
is depreciated separately.

19
The Group assesses the depreciation method, the estimated useful lives and residual values
of property and equipment at the end of each reporting period. If expectations differ from
previous estimates, the changes are accounted for as a change in an accounting estimate.
When future economic benefits are not expected through the use or disposition of property
and equipment, the Group removes the book amount of the assets from the consolidated
statements of financial position. The difference between the amounts received from the
disposal and the book amount of assets is recognized as profit (loss) for the period when the
assets are removed.
6) Intangible assets
(a) Intangible assets acquired separately
Intangible assets with finite useful lives that are acquired separately are carried at cost, less
accumulated amortization and accumulated impairment losses. Amortization is recognized on
a straight-line basis over their estimated useful lives. The estimated useful lives and
amortization method are reviewed at the end of each reporting period, with the effect of any
changes in estimate being accounted for on a prospective basis. Intangible assets with
indefinite useful lives that are acquired separately are carried at cost, less accumulated
impairment losses.
(b) Internally generated intangible assets - research and development expenditure
Expenditure on research activities is recognized as an expense in the period in which it is
incurred.
Expenditure arising from development (or from the development phase of an internal project)
is recognized as an intangible asset if, and only if, the development project is designed to
produce new or substantially improved products, and the Group can demonstrate the technical
and economic feasibility and measure reliably the resources attributable to the intangible asset
during its development.
The amount initially recognized for internally generated intangible assets is the sum of the
expenditure incurred from the date when the intangible asset first meets the recognition criteria
listed above. Where no internally generated intangible asset can be recognized, development
expenditure is recognized in profit (loss) for the period when it is incurred.
Subsequent to initial recognition, internally generated intangible assets are reported at cost,
less accumulated amortization and accumulated impairment losses, on the same basis as
intangible assets that are acquired separately.
(c) Intangible assets acquired in a business combination
Intangible assets that are acquired in a business combination are recognized separately from
goodwill, and are initially recognized at their fair value at the acquisition date (which is regarded
as their deemed cost). Subsequent to initial recognition, intangible assets acquired in a

20
business combination are reported at cost, less accumulated amortization and accumulated
impairment losses, on the same basis as intangible assets that are acquired separately.
(d) Disposal of intangible assets
If future economic benefits are not expected through the use or disposition of the intangible
assets, the Group removes the book amount of the assets from the consolidated financial
statements. The difference between the amounts received from the disposal of intangible
assets and the book amounts of the assets are recognized as profit (loss) for the period when
the assets are removed.
7) Impairment of tangible and intangible assets, other than goodwill
At the end of each reporting period, the Group reviews the carrying amounts of its tangible
and intangible assets to determine whether there is any indication that those assets have
suffered an impairment loss. If any such indication exists, the recoverable amount of the asset
is estimated in order to determine the extent of the impairment loss (if any). Where it is not
possible to estimate the recoverable amount of an individual asset, the Group estimates the
recoverable amount of the Cash-Generating Unit (“CGU”) to which the asset belongs. Where
a reasonable and consistent basis of allocation can be identified, assets for which recoverable
amounts are not individually estimated are also allocated to individual CGUs, or otherwise,
they are allocated to the smallest group of CGUs for which a reasonable and consistent
allocation basis can be identified.
Intangible assets with indefinite useful lives and intangible assets not yet available for use are
tested for impairment at least annually and whenever there is an indication that the assets may
be impaired.
Recoverable amounts are the higher of fair value, less costs to sell, or value in use. In
assessing value in use, the estimated future cash flows are discounted to their present value
using a pretax discount rate that reflects current market assessments of the time value of
money and the risks specific to the asset for which the estimates of future cash flows have not
been adjusted.
If impairment recognized in prior periods is reversed, the book amount of the individual assets
(or CGU) is the smaller of the carrying amount of the recoverable amount or the book amount
that the impairment would not have recognized in prior periods and the reversal of impairment
loss is recognized immediately in profit (loss) for the period at that time.
8) Provisions
Provisions are recognized when the Group has a present obligation (legal or constructive) as
a result of a past event, it is probable that the Group will be required to settle the obligation
and the amount of the obligation is reliably estimated.
The amounts recognized as a provision are the best estimate of the consideration required to
settle the present obligation at the end of the reporting period, taking into account the risks
and uncertainties surrounding the obligation. When a provision is measured using the cash

21
flows estimated to settle the present obligation, its carrying amount is the present value of
those cash flows (where the effect of the time value of money is material).
When some or all of the economic benefits required to settle a provision are expected to be
recovered from a third party, a receivable is recognized as an asset if it is virtually certain that
reimbursement will be received and the amount of the receivable can be measured reliably.
At the end of each reporting period, the remaining provision balance is reviewed and assessed
to determine if the current best estimate is being recognized. If the existence of an obligation
to transfer economic benefit is no longer probable, the related provision is reversed during the
period.
9) Financial liabilities and equity instruments
(a) Classification as debt or equity
Debt and equity instruments are classified as either financial liabilities or equity in accordance
with the substance of the contractual arrangement and the definition of financial liabilities and
equity instruments.
(b) Equity instruments
An equity instrument is any contract that evidences a residual interest in the assets of an entity
after deducting all of its liabilities. Equity instruments issued by the Group are recognized as
the proceeds are received, net of direct issue costs.
Treasury shares transactions are deducted directly from equity. Profit or loss arising from
purchases and sales, issuances and incinerations of treasury shares are not recognized in
profit (loss) for the period.
(c) Compound instruments
The component parts of compound instruments issued by the Group are allocated into
financial liabilities and equity in accordance with the definition of the financial asset and liability.
Convertible option that can be settled by exchanging financial asset, such as fixed amount of
cash for the fixed number of treasury shares, is equity instruments.
At the date of issue, the fair value of the liability component is estimated using the prevailing
market interest rate for a similar non-convertible instrument. This amount is recorded as a
liability on an amortized cost basis using the effective interest rate method, until extinguished
upon conversion or at the instrument’s maturity date.
The equity component is determined by deducting the amounts of the liability component from
the fair value of the compound instrument as a whole. This is recognized and included in equity,
net of income tax effects, and is not subsequently remeasured.
(d) Financial liabilities

22
A financial liability is recognized when the Group becomes a party to the contract and at initial
recognition. A financial liability, other than financial liability at fair value through profit or loss,
is measured at its fair value, plus or minus transaction costs that are directly attributable to the
issue of the financial liability. Otherwise, the transaction cost that is directly attributable to the
issue of the financial liability at fair value through profit or loss is recognized in profit (loss) for
the period immediately when it arises.
Financial liabilities are classified as either financial liabilities at fair value through profit or loss
or other financial liabilities.
(e) Other financial liabilities
Other financial liabilities are subsequently measured at amortized cost using the effective
interest rate method, with interest expense recognized on an effective interest rate method.
The effective interest rate method is used for calculating the amortized cost of a financial
liability and allocating interest expense over the relevant period. The effective interest rate is
the discounted rate used to estimate the net carrying value of future cash payment, including
commission and points to be paid or received, transaction cost and other premium or discounts
throughout the expected life of financial liability, or, where appropriate, a shorter period.
(f) Derecognition of financial liabilities
The Group derecognizes financial liabilities when, and only when, the Group’s obligations are
discharged, canceled or expired. On derecognition of a financial liability in its entirety, the
difference between the carrying amount and the consideration received is recognized in profit
(loss) for the period.
10) Derivative instruments
The Group enters into a variety of derivative contracts, including interest rate swaps and
currency swaps, to manage its exposure to interest rate and foreign exchange rate risk.
Derivatives are initially recognized at fair value at the date the derivative contract is entered
into, and are subsequently remeasured to their fair value at the end of each reporting period.
Gain or loss from the change in fair value is recognized in profit (loss) for the period
immediately, unless the derivative is designated and effective as a hedging instrument; in
which case the timing of the recognition in profit or loss depends on the nature of the hedge
relationship.
A derivative with a positive fair value is recognized as a financial asset, and a derivative with
a negative fair value is recognized as a financial liability.
(a) Hedge accounting
The Group designates certain derivative instruments as cash flow hedges.

23
At the inception of the hedge relationship, the Group documents the relationship between the
hedging instrument and the hedged item, along with its risk management objectives and its
strategy for undertaking various hedge transactions. Furthermore, at the inception of the
hedge and on an ongoing basis, the Group documents whether the hedging instrument is
highly effective in offsetting changes in cash flows of the hedged item.
(b) Cash flow hedges
The effective portion of changes in the fair value of derivatives that are designated and qualify
as cash flow hedges is recognized in other comprehensive income. The gain or loss relating
to the ineffective portion is recognized immediately in profit (loss) for the period, and is included
in the other operating revenue or expenses line item.
Amounts previously recognized in other comprehensive income and accumulated in equity are
reclassified to profit (loss) for the period when the hedged item is recognized in profit (loss) for
the period.
Hedge accounting is discontinued when the Group revokes the hedging relationship; when the
hedging instrument expires or is sold, terminated or exercised; or when it no longer qualifies
for hedge accounting. Any gain or loss accumulated in equity at that time remains in equity
and is recognized when the forecasted transaction is ultimately recognized in profit or loss.
When a forecasted transaction is no longer expected to occur, the gain or loss accumulated
in equity is recognized immediately in profit or loss.
11) Share capital
Incremental costs directly attributable to the issue of new shares or options are shown in equity
as a deduction, net of tax, from the proceeds. Share issuance costs are incremental costs
directly attributable to the issue of equity instruments, and are deducted on the initial
recognition of the equity instruments.
Where the Parent Company or its subsidiary purchases any shares of the Parent Company or
its subsidiary, the consideration paid is deducted from shareholders’ equity as treasury shares,
until they are canceled. Where such shares are subsequently sold or reissued, any
consideration received is included in shareholders’ equity.
12) Revenue Recognition
Under Korean IFRS 1115, revenue is recognized applying the following five-step process to
contracts with customers:
Ÿ Identify contracts with customers
Ÿ Identify the separate performance obligation
Ÿ Determine the transaction price of the contract
Ÿ Allocate the transaction price to each of the separate performance obligations, and

24
Ÿ Recognize the revenue as each performance obligation is satisfied.
13) Commission revenue
(a) Fees that are a part of the financial instruments’ effective interest rate
Fees that are a part of the effective interest rate of a financial instrument are treated as an
adjustment to the effective interest rate. Such fees include compensation for activities, such
as evaluating the borrower’s financial condition; evaluating and recording guarantees,
collateral and other security arrangements; negotiating the terms of the instrument; preparing
and processing documents; and closing the transaction, as well as origination fees received
on issuing financial liabilities measured at amortized cost. These fees are deferred and
recognized as an adjustment to the effective interest rate. However, in case the financial
instrument is a financial asset at fair value through profit or loss, the relevant fee is recognized
as revenue when the instrument is initially recognized.
(b) Commission from significant act performed
The recognition of revenue is postponed until the significant act is executed.
(c) Unearned revenue from point programs (customer loyalty program)
The Group operates customer loyalty program to provide customers with incentives to buy
their goods or services. If a customer buys goods or services, the Group grants the customer
awards credits (often described as ‘points’). The customer can redeem the award credits for
awards, such as free or discounted goods or services. The awards credits are accounted
separately as identifiable component of the sales transaction(s) in which they are granted (the
‘initial sales’). The fair value of the consideration received or receivable in respect of the initial
sale shall be allocated between the award credits and other components of the sale.
If the Group supplies the awards itself, it shall recognize the consideration allocated to award
credits as revenue when award credits are redeemed and it fulfills its obligation to supply
awards. The amount of revenue recognized shall be based on the number of award credits
that have been redeemed in exchange for awards related to the total number expected to be
redeemed. If the third party supplies the awards, the Group shall assess whether it is collecting
the consideration allocated to the award credits on its own account (as the principal in the
transaction ) or on behalf of the third party (as agent for the third party). The amount of revenue
recognized shall be net amount retained on its own account.
14) Interest income and expense
Using the effective interest rate method, the Group recognizes interest income and expense
in the consolidated statements of comprehensive income. Effective interest rate method
calculates the amortized cost of financial assets or liabilities and allocates interest income or
expense over the relevant period. The effective interest rate discounts the expected future
cash in and out through the expected life of financial instruments, or, if appropriate, through
shorter period, to net carrying amount of financial assets or liabilities. When calculating the
effective interest rate, the Group estimates future cash flows considering all contractual

25
financial instruments, except the loss on future credit risk. Also, effective interest rate
calculation includes redemption costs, points (part of the effective interest rate) that are paid
or earned between contracting parties, transaction costs and other premiums or discounts. It
is assumed that the cash flows and the expected existing period of aggregation of
homogeneous financial instruments are reliably estimable. However, in the exception that cash
flow of financial instruments (or aggregation of homogeneous financial instruments) or the
estimated maturity is not reliably estimable, the effective interest rate is calculated using the
contractual terms of cash flows for the entire contract period.
If financial instruments or aggregation of homogeneous financial instruments are impaired, the
subsequent interest income is recognized based on the discount rate used in discounting
future cash flows for the purpose of the measurement of impairments.
15) Dividend revenue
Dividend income from investments is recognized when the shareholders’ right to receive the
payment of dividends has been established.
16) Foreign currency translation
The individual financial statements of the consolidated entities are presented in the currency
of the primary economic environment in which the Group operates (its functional currency).
For the purpose of the consolidated financial statements, the results of operations and financial
position of each entity are expressed in Korean won, which is the functional currency of the
Parent Company and the presentation currency for the consolidated financial statements. In
preparing the financial statements of the individual entities, transactions in currencies other
than the entity’s functional currency (foreign currencies) are recognized at the rates of
exchange prevailing at the date of the transactions. At the end of each reporting period,
monetary items denominated in foreign currencies are retranslated at the rates prevailing at
that date. Non-monetary items carried at fair value that are denominated in foreign currencies
are retranslated at the rates prevailing at the date when the fair value was determined. Non-
monetary items that are measured in terms of historical cost in a foreign currency are not
retranslated.
Exchange differences are recognized in profit (loss) for the period in which they arise, except
for exchange differences on transactions entered into in order to hedge certain foreign
currency risks. See Note 2. 10) for hedging accounting policies.
17) Employee Benefits
The Group operates both defined contribution and defined benefit pension plans.
Contributions to defined contribution plans are recognized as an expense when employees
have rendered service entitling them to the contributions.
For defined benefit plans, the cost of providing benefits is determined using the projected unit
credit method, with actuarial valuations being carried out at the end of each reporting period.
The remeasurements of net defined benefit liabilities consist of actuarial profit or loss return

26
on plan assets (excluding amounts included in net interest from net benefit obligations (assets))
and changes in the asset recognition ceiling effect, and is recognized immediately in other
comprehensive income. Past service costs are recognized in the period in which the plan is
revised and net interest is calculated by applying the discount rate to the net defined benefit
obligation (asset) at the beginning of the period. The components of defined benefit costs
consist of service costs (current and past service costs and settlements), net interest expenses
(revenues) and remeasurements.
The Group recognizes service costs and net interest expense (income) in profit or loss, and
remeasurements in other comprehensive income. The profit or loss from plan curtailments is
treated as past service cost.
The retirement benefit obligation recognized in the consolidated statements of financial
position represents the present value of the defined benefit obligation, as adjusted for
unrecognized actuarial gains and losses and unrecognized past service cost and as reduced
by the fair value of plan assets. Any asset resulting from this calculation is limited to
unrecognized actuarial losses and past service cost, plus the present value of available
economic benefits of refunds and reductions in future contributions to the plan.
18) Taxation
Income tax consists of current tax and deferred tax.
(a) Current tax
The tax currently payable is based on taxable profit for the period. Taxable income differs from
profit (loss) before tax expenses as reported in the consolidated statement of comprehensive
income because of items of income or expense that are taxable or deductible in other periods.
The Group’s liability for current tax is calculated using tax rates that have been enacted or
substantively enacted by the end of the reporting period.
(b) Deferred tax
Deferred tax is recognized on temporary differences between the carrying amounts of assets
and liabilities in the consolidated financial statements and the corresponding tax bases used
in the computation of taxable income. Deferred tax liabilities are generally recognized for all
taxable temporary differences. Deferred tax assets are generally recognized for all deductible
temporary differences to the extent it is probable that taxable income will be available against
which those deductible temporary differences can be utilized. Such deferred tax assets and
liabilities are not recognized if the taxable or deductible temporary difference arises from
goodwill or from the initial recognition (other than in a business combination) of other assets
and liabilities in a transaction that affects neither the taxable income (taxable deficit) nor the
accounting income.
Deferred tax liabilities are recognized for taxable temporary differences associated with
investments in subsidiaries and associates and interests in joint ventures, except where the
Group is able to control the reversal of the temporary difference and it is probable that the
temporary difference will not reverse in the foreseeable future. Deferred tax assets arising from

27
deductible temporary differences associated with such investments and interests are only
recognized to the extent it is probable that there will be sufficient taxable income against which
the benefits of the temporary differences can be utilized and they are expected to reverse in
the foreseeable future.
The carrying amount of deferred tax assets is reviewed at the end of each reporting period
and reduced to the extent it is no longer probable that sufficient taxable income will be available
to allow all or part of the asset to be recovered.
Deferred tax assets and liabilities are measured at the tax rates that are expected to be applied
in the period in which the liability is settled or the asset is realized, based on tax rates (and tax
laws) that have been enacted or substantively enacted by the end of the reporting period. The
measurement of deferred tax liabilities and assets reflects the tax consequences that would
follow from the manner in which the Group expects, at the end of the reporting period, to
recover or settle the carrying amount of its assets and liabilities.
The Group shall offset deferred tax assets and deferred tax liabilities if, and only if, the Group
has a legally enforceable right to set off current tax assets against current tax liabilities and
the deferred tax assets and the deferred tax liabilities relate to income taxes levied by the
same taxation authority on either the same taxable entity or different taxable entities that intend
either to settle current tax liabilities and assets on a net basis or realize the assets and settle
the liabilities simultaneously in each future period in which significant amounts of deferred tax
liabilities or assets are expected to be settled or recovered.
For the purpose of measuring deferred tax liabilities and deferred tax assets for investment
properties that are measured using the fair value model, the carrying amounts of such
properties are presumed to be recovered entirely through sale, unless the presumption is
rebutted. The presumption is rebutted when the investment property is depreciable and is held
within a business model, the objective of which is to consume substantially all of the economic
benefits embodied in the investment properties over time, rather than through sale.
(c) Current tax and deferred tax for the year
Current tax and deferred tax are recognized in profit or loss, except when they relate to items
that are recognized in other comprehensive income or directly in equity, in which case the
current tax and deferred tax are also recognized in other comprehensive income or directly in
equity. Where current tax or deferred tax arises from the initial accounting for a business
combination, the tax effect is included in the accounting for the business combination.
19) Earnings per share
Basic earnings per share is calculated by dividing net profit for the period available to common
shareholders by the weighted-average number of ordinary shares outstanding during the year.
Diluted earnings per share are calculated using the weighted-average number of ordinary
shares outstanding, adjusted to include the potentially dilutive effect of common equivalent
shares outstanding.
20) Fair value

28
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an
orderly transaction between market participants at the measurement date, regardless of
whether that price is directly observable or estimated using another valuation technique. In
estimating the fair value of an asset or a liability, the Group takes into account the
characteristics of the asset or liability if market participants would take those characteristics
into account when pricing the asset or liability at the measurement date. Fair value for
measurement and/or disclosure purposes in these consolidated financial statements is
determined on such a basis, except for share-based payment transactions that are within the
scope of K-IFRS 1102, Share-Based Payment; leasing transactions that are within the scope
of K-IFRS 1017, Leases; and measurements that have some similarities to fair value, but are
not fair value, such as net realizable value in K-IFRS 1002, Inventories, or value in use in K-
IFRS 1036, Impairment of Assets.
In addition, for financial reporting purposes, fair value measurements are categorized into
Level 1, 2 or 3, based on the degree to which the inputs to the fair value measurements are
observable and the significance of the inputs to the fair value measurement in its entirety,
which are described as follows:
Ÿ Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets
or liabilities that the entity can access at the measurement date;
Ÿ Level 2 inputs are inputs, other than quoted prices included within Level 1, that are
observable for the asset or liability, either directly or indirectly; and
Ÿ Level 3 inputs are unobservable inputs for the asset or liability.
3. Critical Accounting Estimates and Assumptions
In the application of the Group’s accounting policies, which are described in Note 2,
management is required to make judgments, estimates and assumptions about the carrying
amounts of assets and liabilities that are not readily apparent from other sources. The
estimates and associated assumptions are based on historical experience and other factors
that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to
accounting estimates are recognized in the period in which the estimate is revised if the
revision affects only that period or in the period of the revision and future periods if the revision
affects both current and future periods.
3.1 Critical judgments in applying accounting policies
The following are the critical judgments, apart from those involving estimations (see Note 3.2)
that the directors have made in the process of applying the Group’s accounting policies and
that have the most significant effect on the amounts recognized in the consolidated financial
statements.
1) Judgments in applying consolidation

29
The Parent Company has a 0.5% ownership interest in Super Series 1st Securitization
Specialty Co., Ltd., Super Series 2nd Securitization Specialty Co., Ltd., Super Series 3rd
Securitization Specialty Co., Ltd., Super Series 4th Securitization Specialty Co., Ltd. and
Super Series 5th Securitization Specialty Co., Ltd. The directors of the Parent Company made
an assessment as to whether the Parent Company has control over Privia 4th Securitization
Specialty Co., Ltd., Privia 5th Securitization Specialty Co., Ltd. and Super Series 1st
Securitization Specialty Co., Ltd., Super Series 2nd Securitization Specialty Co., Ltd., Super
Series 3rd Securitization Specialty Co., Ltd., Super Series 4rd Securitization Specialty Co.,
Ltd. and Super Series 5rd Securitization Specialty Co., Ltd. in accordance with the definition
of control and the related guidance set out in K-IFRS 1110. It is concluded that the Parent
Company has control over subsidiaries as it involves in the objectives and design of the
subsidiaries and is exposed to their parts of risks and rewards. Also, all the decision-making
processes of the subsidiaries are operated on autopilot by provisions and articles of
association, and the Parent Company is considered to have an ability to use power because
the Parent Company has control over the changes in provisions and articles of association.
Therefore, the directors concluded that it has control over the subsidiaries. Details of this
control assessment are set out in Note 4.
3.2 Key sources of estimation uncertainty
Critical accounting judgment and key sources of estimation uncertainty at the end of reporting
period having significant risk factors that can incur the material changes in the book amount
of assets and liabilities of the Group for the following fiscal year are as follows:
1) Provision for impairment
The Group determines and recognizes provision for impairment through impairment testing on
credit card assets, loan receivables and certain other assets. The Group also recognizes
provisions for impairment of unused commitments. The accuracy of provision for
impairment/provisions for credit losses is determined by the risk assessment methodology and
assumptions used for estimating expected cash flows of the borrower for allowances on
individual loans and collectively assessing allowances for groups of loans and provisions for
unused commitments.
2) Unearned revenue from point programs
The Group provides its customers with incentives to buy goods or services by providing awards
(customer loyalty programs) and allocates the fair value of the consideration received or
receivable between the award credits granted (points) and the other components of the
revenue transaction. The Group supplies the awards, such as discounted payments or free
gifts. The consideration allocated to the award credits is measured by reference to their fair
value, i.e., the amount for which the award credits could be sold separately. The fair value of
the consideration allocated to the award credits is estimated by taking into account expected
redemption rates, etc., and recognized as deferred revenue, until the Group fulfills its
obligations to deliver awards to customers. The amount of revenue recognized is to be based
on the number of award credits that have been redeemed in exchange for awards, relative to
the total number expected to be redeemed.

30
3) Postemployment Benefits: Defined Benefit Plans
The Group operates a defined benefit pension plan (“Plan”). The amount recognized as a
defined benefit liability is the present value of the defined benefit obligation, less the fair value
of Plan assets at the end of the reporting period. The present value of defined benefit obligation
is calculated annually by using actuarial assumptions, such as future increases in salaries,
expected returns on plan assets, discount rate and others. The Plan has the uncertainty due
to the nature of long-term plan. The net defined benefit liability as at December 31, 2018 and
2017, is ￦1,449 million and ￦9,124 million, respectively (see Note 13).
4) Fair Value Measurement of Financial Instruments
As disclosed in Note 31, the fair value of financial instruments classified as certain level is
measured using valuation techniques where significant inputs are not based on observable
market data. The Group believes that valuation methods and assumptions used for measuring
the fair value of financial instruments are reasonable and that the fair value recognized in the
consolidated statements of financial position is appropriate.
5) Income taxes
If certain portion of the taxable income is not used for investments or increase in wages or
dividends in accordance with the Tax System For Recirculation of Corporate Income, the
Group is liable to pay additional income tax calculated based on the tax laws. The new tax
system is effective for three years from 2015. Accordingly, the measurement of current and
deferred income tax is affected by the tax effects from the new tax system. As the Group’s
income tax is dependent on the investments, increase in wages and dividends, there is an
uncertainty measuring the final tax effects.

31
4. Consolidated Subsidiaries
Details of the consolidated subsidiaries as at December 31, 2018 and 2017, are as follows:
Ownership interest held by
the Group (%)
Main business Location 2018 2017
Closing
month
Privia 4th SPC1
Asset securitization Korea - 0.5 December
Privia 5th SPC1 Asset securitization Korea - 0.5 December
Super Series 1st SPC1 Asset securitization Korea 0.5 0.5 December
Super Series 2nd SPC1
Asset securitization Korea 0.5 0.5 December
Super Series 3rd SPC1
Super Series 4th SPC1 Asset securitization Korea 0.5 0.5 December
Super Series 5th SPC1
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.

32
Meanwhile, when event of default occurs from derivative contracts regarding asset-backed
securities issued by SPCs, the Parent Company may be liable for reimbursement of losses
incurred on counterparties.
Details of the Group’s subsidiaries as at December 31, 2018 and 2017, are as follows:
(in millions of Korean 2018
won)
Assets Liabilities
Operating
income
Profit (loss) for
the year
Comprehensive
income (loss)
Super Series 1st SPC 230,549 230,469 28,802 - 150
Super Series 2nd SPC 300,102 300,102 5,354 - -
Super Series 3rd SPC 467,595 466,704 26,651 - (1,554)
Super Series 4th SPC 341,611 341,694 20,451 - (1,881)
Bluewalnut Co., Ltd. 24,849 11,747 4,273 (3,757) (3,866)
Money Market Trust 840,235 - 235 235 235
won)
Assets Liabilities
Operating
income
Profit (loss) for
the year
Comprehensive
income (loss)
Privia 4th SPC 24 - 25,201 24 -
Privia 5th SPC 100,088 100,088 7,135 - -
Super Series 1st SPC 461,098 461,214 63,411 - 2,808
Super Series 2nd SPC 300,115 300,115 5,369 - -
Super Series 3rd SPC 467,595 464,667 62,745 - 2,120
Super Series 4th SPC 341,611 339,229 24,599 - 1,809
Bluewalnut Co., Ltd. 11,007 6,845 1,355 (2,699) (2,706)
Money Market Trust 641,195 - 195 195 195
There are no subsidiaries newly included during year ended December 31, 2018.
Subsidiaries excluded from the consolidation during the year ended December 31, 2018:
Name of subsidiary Reason
Privia 4th SPC Liquidation
Privia 5th SPC Liquidation
Non-controlling interests
Non-controlling interests of consolidated special-purpose company (“SPC”) have been
measured at initial acquisition cost because they do not have any right of residual income.
Also, the Group does not state non-controlling interests as capital, but as liability.

33
5. Cash and Deposits
Details of cash and cash equivalents as at December 31, 2018 and 2017, are as follows:
(in millions of Korean
won) 2018 2017
Annual interest
rate (%) Amount
Annual interest
rate (%) Amount
Current deposit - 345 - 223
Ordinary deposit - 205,439 - 225,278
Time deposit - - 1.60 ~ 1.65 15,000
Other cash and cash
equivalents - 660,672 - 413,911
866,456 654,412
Details of restricted financial assets as at December 31, 2018 and 2017, are as follows:
(in millions of Korean won) 2018 2017 Description
Cash and
deposits
Kookmin Bank and
others
18 18
Guarantee deposits for
overdraft
Shinhan Bank and
others
23,100 23,100 Secured deposits
Mirae Asset Securities 3 7 Social enterprise fund
Shinhan Bank 1,500 -
Guarantee deposits for
overseas remittance
Citibank 103,372 81,910
Deposits related to
securitization
Other financial
assets
Korea Asset
Management
7,762 7,193
Escrow account in relation to a
sale of Daewoo Engineering
& Construction Co., Ltd.
135,755 112,228

34
6. Securities
Securities as at December 31, 2018 and 2017, are as follows:
(in millions of Korean won) 2018 2017
Financial assets at fair value through profit or loss
Debt securities 857,036 -
Equity securities 205,200 -
1,062,236 -
Financial assets at fair value through other
comprehensive income
Equity securities 1,484 -
Financial assets held for trading
Debt securities - 853,461
Equity securities - 140,005
- 993,466
Available-for-sale financial assets
Equity securities - 1,767
1,063,720 995,233

35
7. Card Assets and Loan Receivables
Details of card assets and loan receivables by customers as at December 31, 2018 and 2017,
are as follows:
(in millions of 2018
Korean won)
Principal
Deferred
origination
cost and fee
Present
value of
discounts
Provision for
impairment
Carrying
amount
Card receivables
Household 8,249,979 (17,087) (13,428) (131,811) 8,087,653
Corporates 724,710 - - (4,634) 720,076
Short-term card loan
Household 672,551 - - (33,489) 639,062
Long-term card loan
Household 3,761,569 - (618) (229,356) 3,531,595
Loan receivables
Household 20,238 - - (1,118) 19,120
13,429,047 (17,087) (14,046) (400,408) 12,997,506
Korean won)
Principal
Deferred
origination
cost and fee
Present
value of
discounts
Provision for
impairment
Carrying
amount
Card receivables
Household 8,098,720 (16,004) (10,749) (80,973) 7,990,994
Corporates 649,206 - - (3,365) 645,841
Short-term card loan
Household 847,332 - - (28,342) 818,990
Long-term card loan
Household 3,487,114 - (639) (184,475) 3,302,000
13,082,372 (16,004) (11,388) (297,155) 12,757,825

36
Changes in card assets and loan receivables which have significant impact on provisions for
impairment for the year ended December 31, 2018, are as follows:
(in millions of Korean won) Card receivables Short-term card loan
Lifetime expected credit
losses
losses
12-month
expected credit
losses
Not
impaired Impaired
12-month
expected credit
losses
Not
impaired Impaired
Beginning balance 7,670,274 1,056,926 20,726 610,997 233,007 3,328
Transfer between stages
Transfer to assets
measured at 12-month
expected credit losses 474,954 (462,746) (12,208) 52,672 (52,649) (23)
Transfer to assets
measured at lifetime
expected credit losses (475,071) 476,380 (1,309) (48,004) 48,006 (2)
Impairment (6,360) (4,472) 10,832 (1,523) (741) 2,264
New and removal 394,122 (7,959) (154) (61,802) (36,277) 1,174
Written-off (3,192) (1,534) (768) (1,705) (709) (217)
Disposal and repurchase (86,329) (62,422) (5,001) (48,511) (24,794) (1,939)
Ending balance 7,968,398 994,173 12,118 502,124 165,843 4,585
(in millions of Korean
won)
Long-term card loan Loan receivables
losses
losses
12-month
expected
credit losses
Not
impaired Impaired
12-month
expected
credit losses
Not
impaired Impaired Total
Beginning balance 2,654,544 680,477 152,093 - - - 13,082,372
Transfer to assets
expected credit losses 126,143 (126,112) (31) - - - -
Transfer to assets
expected credit losses (235,043) 235,163 (120) - - - -
Impairment (6,314) (2,901) 9,215 - - - -
New and removal 551,544 (118,925) 22,800 18,996 1,327 62 764,908
Written-off (4,464) (1,779) (1,147) - - - (15,515)
Disposal and repurchase (111,468) (52,596) (9,510) (147) - - (402,717)
Ending balance 2,974,942 613,327 173,300 18,849 1,327 62 13,429,048

37
8. Provisions for Impairment of Card Assets and Loan Receivables
Changes in provisions for impairment of card assets and loan receivables for the periods
ended December 31, 2018 and 2017, are as follows:
(in millions of Korean won) 2018
Card receivables Short-term card loan
losses
losses
12-month
expected credit
losses
Not
impaired Impaired
12-month
expected credit
losses
Not
impaired Impaired
Beginning balance1
49,988 80,856 4,092 16,205 24,410 1,724
Transfer to assets
expected credit losses 31,202 (31,088) (114) 5,124 (5,104) (20)
Transfer to assets
expected credit losses (6,132) 6,196 (64) (1,302) 1,303 (1)
Impairment (153) (453) 606 (55) (81) 136
Written-off (3,192) (1,534) (768) (1,705) (709) (217)
Recovered 423 62 41 181 14 16
Disposal and repurchase (18,325) (10,070) (1,860) (10,471) (3,964) (880)
Additional (reversal of)
provisions (3,019) 34,137 5,615 5,046 1,734 2,105
Ending balance 50,792 78,106 7,548 13,023 17,603 2,863
won) Long-term card loan Loan receivables
losses
losses
12-month
expected
credit losses
Not
impaired Impaired
12-month
expected
credit losses
Not
impaired Impaired Total
Beginning balance1
72,183 50,814 77,951 - - - 378,223
Transfer to assets
expected credit losses 10,299 (10,275) (24) - - - -
Transfer to assets
expected credit losses (6,189) 6,278 (89) - - - -
Impairment (229) (268) 497 - - - -
Written-off (4,464) (1,779) (1,147) - - - (15,515)
Recovered 318 12 57 - - - 1,124
Disposal and repurchase (23,800) (6,985) (4,485) (30) - - (80,870)
Additional (reversal of)
provisions 32,622 8,984 29,075 923 178 46 117,446
Ending balance 80,740 46,781 101,835 893 178 46 400,408

38
1
81,069 million was recognized in the beginning balance of provision for impairment due to
initial application of Korean IFRS 1109.
(in millions of Korean won) 2017
Card
receivables
Short-term
card loan
Long-term
card loan Total
Beginning balance 85,887 30,728 167,123 283,738
Written-off (3,202) (1,224) (4,101) (8,527)
Recovered 417 204 278 899
Disposal and repurchase (23,438) (12,706) (26,885) (63,029)
Additional provisions 24,674 11,340 48,060 84,074
Ending balance 84,338 28,342 184,475 297,155
9. Assets Held for Sale
Details of non-current assets held for sale as at December 31, 2018 and 2017, are as follows:
Land 1,728 -
Buildings 3,975 -
5,703 -
On December 5, 2018, the Group decided to sell its Gwangju office, which is expected to be
completed by March 31, 2019.

39
10. Property and Equipment
Details of property and equipment as at December 31, 2018 and 2017, are as follows:
(in millions of 2018 2017
Korean won)
Cost
Accumulated
depreciation
Book
amount Cost
Accumulated
depreciation
Book
amount
Land 139,408 - 139,408 141,136 - 141,136
Buildings 148,387 (21,396) 126,991 153,112 (18,379) 134,733
Vehicles 2,514 (794) 1,720 2,514 (624) 1,890
Fixtures and equipment 242,327 (175,775) 66,552 220,300 (143,376) 76,924
Construction-in-
progress 3,600 - 3,600 673 - 673
536,237 (197,966) 338,271 517,735 (162,379) 355,356
Changes in property and equipment for the periods ended December 31, 2018 and 2017, are
as follows:
Korean won)
Land Buildings Vehicles
Fixtures and
equipment
Construction
-in-progress Total
Beginning balance 141,136 134,733 1,890 76,924 673 355,356
Acquisitions - 83 - 26,041 3,526 29,650
Reclassification (1,728) (3,975) - 599 (599) (5,703)
Disposal - - - (954) - (954)
Depreciation - (3,850) (170) (36,058) - (40,078)
Ending balance 139,408 126,991 1,720 66,552 3,600 338,271
Korean won)
Land Buildings Vehicles
Fixtures and
equipment
Construction
-in-progress Total
Beginning balance 141,136 111,978 2,075 73,007 35,075 363,271
Acquisitions - 4,680 - 27,784 674 33,138
Reclassification - 21,727 - 13,164 (35,076) (185)
Disposal - - - (1,083) - (1,083)
Depreciation - (3,652) (185) (35,948) - (39,785)
Ending balance 141,136 134,733 1,890 76,924 673 355,356

40
11. Intangible Assets
Intangible assets as at December 31, 2018 and 2017, consist of:
Korean won) Acquisition
cost
Accumulated
amortization
Accumulated
impairment Book amount
Development cost 234,487 (171,349) - 63,138
Software 56,288 (41,499) - 14,789
Others 18,735 (18,617) - 118
Construction-in-
progress 8,730 - - 8,730
Membership 19,845 - (34) 19,811
338,085 (231,465) (34) 106,586
Korean won) Acquisition
cost
Accumulated
amortization
Accumulated
impairment Book amount
Development cost 218,466 (140,460) - 78,006
Software 51,652 (33,496) - 18,156
Others 18,740 (18,265) - 475
Construction-in-
progress 7,652 - - 7,652
Membership 19,845 - (34) 19,811
316,355 (192,221) (34) 124,100
Changes in intangible assets for the periods ended December 31, 2018 and 2017, are as
follows:
Korean won) Developm-
ent cost Software Others
Construction
-in-progress
Member-
ship Total
Beginning balance 78,006 18,156 475 7,652 19,811 124,100
Acquisitions 18,230 5,268 - 7,888 - 31,386
Reclassification 4,447 473 (5) (6,810) - (1,895)
Disposal (4,688) (817) - - - (5,505)
Amortization (32,857) (8,291) (352) - - (41,500)
Ending balance 63,138 14,789 118 8,730 19,811 106,586

41
Korean won) Developm-
ent cost Software Others
Construction
-in-progress
Member-
ship Total
Beginning balance 75,467 20,301 824 8,283 19,811 124,686
Acquisitions 24,559 5,081 4 7,649 - 37,293
Reclassification 7,823 488 2 (8,280) - 33
Disposal - (19) - - - (19)
Amortization (29,843) (7,695) (355) - - (37,893)
Ending balance 78,006 18,156 475 7,652 19,811 124,100
12. Borrowings
Details of borrowings as at December 31, 2018 and 2017, are as follows:
(in millions of Korean won) Annual interest
rate (%) 2018 2017
Short-term borrowings
Commercial Paper Shinhan Bank and 6 others 2.20 ~ 2.45 545,000 545,000
Borrowings
Korea Development Bank and 10
others
2.72 ~ 3.10 470,000 390,000
1,015,000 935,000
Current portion of long-term borrowings
Commercial Paper
KTB Investment Securities and
other
1.88 ~ 1.89 250,000 -
Borrowings Shinhan Bank 2.95 30,000 200,000
280,000 200,000
Long-term borrowings
Commercial Paper
KTB Investment Securities and 9
others
1.62 ~ 2.55 1,670,000 1,370,000
Borrowings NH Bank 3.21 50,000 30,000
1,720,000 1,400,000
3,015,000 2,535,000

42
Details of debentures as at December 31, 2018 and 2017, are as follows:
(in millions of Korean won) Annual interest
rate (%) Maturity 2018 2017
Short-term debentures - - - 70,000
Current portion of debentures 1.52 ~ 4.75
2019.01.17 ~
2019.12.24
2,240,860 2,175,280
Long-term debentures 1.86 ~ 3.73
2020.01.07 ~
2028.10.26
5,264,679 5,374,966
7,505,539 7,620,246
Less: Discounts on debenture (7,177) (10,009)
7,498,362 7,610,237
The outstanding debenture is non-guaranteed corporate bonds, with their principals to be
redeemed either by installment or at maturity. Bond issuance costs are recorded as discounts
on debenture and amortized using the effective interest rate method.
13. Post-employment Benefits
13.1 Defined Contribution Plan
The expense recognized in the consolidated statements of comprehensive income related to
post-employment benefit under the defined contribution plan for the periods ended December
31, 2018 and 2017, is as follows:
Defined contribution plan 524 190
13.2 Net Employee Benefit Liabilities
Details of net employee benefit liabilities as at December 31, 2018 and 2017, are as follows:
Net defined benefit liabilities (assets) (2,765) 4,160
Long-term employee benefit liabilities 4,214 4,964
1,449 9,124

4 q18 audit_eng

Recommended

Recommended

More Related Content

What's hot

What's hot (20)

Similar to 4 q18 audit_eng

Similar to 4 q18 audit_eng (20)

More from Hyundai Finance

More from Hyundai Finance (20)

Recently uploaded

Recently uploaded (20)

4 q18 audit_eng