Fy 2017 1 q en

Hyundai Card Co., Ltd. and
Subsidiaries
Consolidated Interim Financial Statements
March 31, 2017

Hyundai Card Co., Ltd. and Subsidiaries
Index
March 31, 2017 and 2016
Page(s)
Report on Review of Interim Financial Statements………………………..……… 1 ~ 2
Consolidated Interim Financial Statements
Consolidated Interim Statements of Financial Position………………………………. 3 ~ 4
Consolidated Interim Statements of Comprehensive Income…….…………………. 5
Consolidated Interim Statements of Changes in Equity........................................... 6
Consolidated Interim Statements of Cash Flows.........................................…......... 7
Notes to the Consolidated Interim Financial Statements..........................…............ 8 ~ 41

Report on Review of Interim Financial Statements
(English Translation of a Report Originally Issued in Korean)
To the Board of Directors and Shareholders of
Hyundai Card Co., Ltd.
Reviewed Financial Statements
We have reviewed the accompanying consolidated interim financial statements of Hyundai Card Co., Ltd.
and its subsidiaries (collectively referred to as the “Group”). These financial statements consist of the
consolidated interim statement of financial position of the Group as at March 31, 2017, and the related
consolidated interim statements of comprehensive income, changes in equity and cash flows for the
three-month period ended March 31, 2017, and a summary of significant accounting policies and other
explanatory notes, expressed in Korean won.
Management’s Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these consolidated interim
financial statements in accordance with International Financial Reporting Standards as adopted by the
Republic of Korea (“Korean IFRS”) 1034 Interim Financial Reporting, and for such internal control as
management determines is necessary to enable the preparation of consolidated interim financial
statements that are free from material misstatement, whether due to fraud or error.
Auditor’s Responsibility
Our responsibility is to issue a report on these consolidated interim financial statements based on our
review.
We conducted our review in accordance with quarterly or semi-annual review standards established by
the Securities and Futures Commission of the Republic of Korea. A review of consolidated interim
financial information consists of making inquiries, primarily of persons responsible for financial and
accounting matters, and applying analytical and other review procedures. A review is substantially less in
scope than an audit conducted in accordance with Korean Standards on Auditing and consequently does
not enable us to obtain assurance that we would become aware of all significant matters that might be
identified in an audit. Accordingly, we do not express an audit opinion.

2
Conclusion
Based on our review, nothing has come to our attention that causes us to believe the accompanying
consolidated interim financial statements are not presented fairly, in all material respects, in accordance
with Korean IFRS 1034 Interim Financial Reporting.
Other Matters
The consolidated statement of comprehensive income, statement of changes in equity and statement of
cash flows for the three-month period ended March 31, 2016, presented herein for comparative purposes,
were reviewed by Deloitte Anjin LLC whose report dated May 13, 2016. Based on their review, nothing
has come to their attention that causes them to believe the accompanying financial statements do not
present fairly, in all material respects, in accordance with Korean IFRS 1034 Interim Financial Reporting.
The consolidated financial statements of the Group for the year ended December 31, 2016, were audited
by Deloitte Anjin LLC who expressed an unqualified opinion on those statements on March 9, 2017.
These financial statements are not included in this review report. The consolidated statement of financial
position as at December 31, 2016, presented herein for comparative purposes, is consistent, in all
material respects, with the above audited statement of financial position as at December 31, 2016.
Review standards and their application in practice vary among countries. The procedures and practices
used in the Republic of Korea to review such financial statements may differ from those generally
accepted and applied in other countries.
Seoul, Korea
May 12, 2017
This report is effective as of May 12, 2017, the review report date. Certain subsequent events or
circumstances, which may occur between the review report date and the time of reading this report,
could have a material impact on the accompanying consolidated interim financial statements and
notes thereto. Accordingly, the readers of the review report should understand that there is a
possibility that the above review report may have to be revised to reflect the impact of such
subsequent events or circumstances, if any.

Consolidated Interim Statements of Financial Position
March 31, 2017 and December 31, 2016
(in Korean won) Notes
Assets
Cash and deposits 4,22,27
Cash and cash equivalents ￦ 527,305,896,408 ￦ 544,794,485,545
Deposits 49,224,500,000 49,224,500,000
576,530,396,408 594,018,985,545
Securities 5,27
Short-term trading financial assets 754,527,597,955 934,410,761,140
Available-for-sale financial assets 1,766,969,764 1,766,969,764
756,294,567,719 936,177,730,904
Card assets 6,7,24,25,27
Card receivables 7,992,798,284,751 8,269,534,732,550
Provision for impairment (83,399,696,432) (85,886,699,270)
Cash advances 824,654,176,918 854,784,203,966
Card loans 3,234,890,569,856 3,219,317,692,667
11,771,052,036,448 12,059,898,736,615
Property and equiptment 8,24
Land 141,135,593,407 141,135,593,407
Buildings 126,704,995,407 126,704,995,407
Accumulated depreciation (15,523,525,658) (14,726,748,872)
Vehicles 2,514,088,391 2,514,088,391
Accumulated depreciation (485,685,324) (439,366,875)
Fixtures and equipment 232,822,826,427 224,364,093,027
Accumulated depreciation (156,741,932,943) (151,356,926,811)
Construction in progress 29,998,994,139 35,075,731,257
360,425,353,846 363,271,458,931
Other assets
Other receivable 27 85,613,972,758 71,147,336,413
Provision for impairment 7 (548,318,883) (684,795,942)
Accrued revenue 27 47,566,615,308 48,787,858,968
Provision for impairment 7 (1,392,118,723) (1,452,647,490)
Advance payments 39,181,630,583 34,568,010,198
Provision for impairment 7 (619,744,620) (1,299,169,542)
Prepaid expenses 116,231,845,364 99,535,753,224
Intangible assets 9 121,734,279,259 124,686,171,662
Derivatives assets 13,26,27 14,391,833,441 81,927,179,715
Deferred tax assets 21 146,765,413,306 145,455,115,389
Guarantee deposits provided 4,27 31,569,202,826 34,099,670,256
Others 7,366,760,972 6,849,544,062
607,861,371,591 643,620,026,913
Total assets ￦ 14,072,163,726,012 ￦ 14,596,986,938,908
December 31, 2016March 31, 2017
(Unaudited)
3

Consolidated Interim Statement of Financial Position
March 31, 2017 and December 31, 2016
(in Korean won)
Liabilities
Borrowings 10,22,27
Borrowings ￦ 1,895,000,000,000 ￦ 1,515,000,000,000
Debentures 7,675,315,089,003 8,432,870,774,644
9,570,315,089,003 9,947,870,774,644
Other liabilities
Other payables 24,27 925,805,277,007 1,141,620,489,429
Accrued expenses 27 192,290,860,631 230,145,349,425
Unearned revenue 334,885,661,291 333,051,158,594
Withholdings 27 90,271,928,823 83,120,821,122
Derivative liabilities 13,26,27 45,251,964,520 8,875,678,753
Current tax liabilities 38,148,433,080 34,343,771,456
Net employee benefit liabilities 11 17,151,176,540 14,105,725,451
Guarantee deposits received 27 9,493,204,445 9,471,527,500
Provisions 12,23 98,478,023,203 100,572,537,167
1,751,776,529,540 1,955,307,058,897
Total liabilities 11,322,091,618,543 11,903,177,833,541
Equity
Share capital 802,326,430,000 802,326,430,000
Capital surplus 57,704,443,955 57,704,443,955
Accumulated other comprehensive income 15 (25,504,412,309) (28,573,135,455)
Retained earnings 14,16 1,915,545,645,823 1,862,351,366,867
Total equity 2,750,072,107,469 2,693,809,105,367
Total liabilities and equity ￦ 14,072,163,726,012 ￦ 14,596,986,938,908
(Unaudited)
March 31, 2017 December 31, 2016
The above consolidated interim statements of financial position should be read in conjunction with the accompanying notes.
4

Consolidated Interim Statements of Comprehensive Income
Three-Month Periods Ended March 31, 2017 and 2016
Operating income
Card income 17,24 677,031,224,796 653,619,554,986
Interest income 18 4,589,627,834 5,256,751,529
Gain on valuation and disposal of securities 1,318,439,825 1,067,908,860
Dividends income 129,417,126 136,053,244
Other operating income 19,24 120,525,046,638 25,278,115,691
803,593,756,219 685,358,384,310
Operating expenses
Card expenses 17,24 339,408,836,312 302,680,342,877
Interest expenses 18 61,286,182,480 66,793,540,299
Selling and administrative expenses 20,24 168,330,492,326 161,653,269,581
Securitization expenses 131,597,684 119,010,908
Impairment losses and losses on disposal of receivables 51,547,459,567 58,615,862,081
Increase in provision for unused credit limits 1,756,068,117 1,455,226,789
Other operating expenses 19,24 108,540,253,917 20,797,360,750
731,000,890,403 612,114,613,285
Operating profit 72,592,865,816 73,243,771,025
Non-operating income
Gain on disposal of property and equipment and intangible assets 16,420,283 102,585,860
Rental income 839,987,745 379,432,545
Miscellaneous gain 120,197,394 71,131,338
976,605,422 553,149,743
Non-operating expenses
Loss on disposal of property and equipment and intangible assets 64,711,086 66,424,523
Donations 3,785,054,145 661,655,995
3,849,765,231 728,080,518
Profit before income tax expense 69,719,706,007 73,068,840,250
Income tax expense 21 16,525,427,051 19,485,140,788
Profit for the period 53,194,278,956 53,583,699,462
Other comprehensive income 15
Items that will not be reclassified to profit or loss
Remeasurements of net defined benefit liabilities 381,169,780 (2,546,462,920)
Items that may be subsequently reclassified to profit or loss
Cash flow hedges 2,687,553,366 (3,009,207,579)
3,068,723,146 (5,555,670,499)
Total comprehensive income for the period 56,263,002,102 48,028,028,963
Earnings per share attributable to the
equity holders of the Parent Company 28
Basic and diluted earnings per share 332 334
20162017
(Unaudited) (Unaudited)
Three-month period ended March 31
------------------------------------------------------------
The above consolidated interim statements of comprehensive income should be read in conjunction with the accompanying notes.
5

Consolidated Interim Statements of Changes in Equity
Balance at January 1, 2016 802,326,430,000 45,399,364,539 12,305,079,416 (38,384,103,955) 1,672,385,338,125 2,494,032,108,125
Total comprehensive income
Profit for the period - - - - 53,583,699,462 53,583,699,462
Other comprehensive income
Remeasurements of net defined benefit liabilities - - - (2,546,462,920) - (2,546,462,920)
Cash flow hedges - - - (3,009,207,579) - (3,009,207,579)
Balance at March 31, 2016 (Unaudited) 802,326,430,000 45,399,364,539 12,305,079,416 (43,939,774,454) 1,725,969,037,587 2,542,060,137,088
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
Total comprehensive income
Profit for the period - - - - 53,194,278,956 53,194,278,956
Other comprehensive income
Remeasurements of net defined benefit liabilities - - - 381,169,780 - 381,169,780
Cash flow hedges - - - 2,687,553,366 - 2,687,553,366
Balance at March 31, 2017 (Unaudited) 802,326,430,000 45,399,364,539 12,305,079,416 (25,504,412,309) 1,915,545,645,823 2,750,072,107,469
capital
Share
premium
Share
AccumulatedCapital surplus
Total
Other
reserves earnings
Retainedother
comprehensive income
The above consolidated interim statements of changes in equity should be read in conjunction with the accompanying notes.
6

Consolidated Interim Statements of Cash Flows
Cash flows from operating activities
Cash generated from operating activities: 22 369,481,045,260 211,528,567,582
Interests received 4,090,522,447 5,189,247,724
Interests paid (88,548,820,645) (81,138,356,077)
Dividends received 129,417,126 136,053,244
Income taxes paid (14,983,653,489) (9,414,890,480)
Net cash inflow from operating activities 270,168,510,699 126,300,621,993
Cash flows from investing activities
Disposal of available-for-sale financial assets 22,439,400 16,215,800
Disposal of property and equipment 17,338,500 134,635,000
Disposal of intangible assets 19,534,000 585,000,000
Acquisition of property and equipment (6,851,858,925) (8,570,685,576)
Acquisition of intangible assets (7,976,608,138) (4,752,603,864)
Net cash outflow from investing activities (14,769,155,163) (12,587,438,640)
Cash flows from financing activities
Increase in borrowings 540,000,000,000 410,000,000,000
Proceeds from issuance of debentures 3,108,273,723,391 5,977,225,548,009
Repayment of borrowings (160,000,000,000) (80,000,000,000)
Repayment of debentures (3,761,161,668,064) (6,370,000,000,000)
Net cash outflow from financing activities 22 (272,887,944,673) (62,774,451,991)
Net increase (decrease) in cash and cash equivalents (17,488,589,137) 50,938,731,362
Cash and cash equivalents at the beginning of the period 22 544,794,485,545 505,742,520,609
Cash and cash equivalents at the end of the period 22 527,305,896,408 556,681,251,971
2017
(Unaudited) (Unaudited)
2016
Three-month period ended March 31
------------------------------------------------------------
The above consolidated interim statements of cash flows should be read in conjunction with the accompanying notes.
7

Notes to the Consolidated Interim Financial Statements
March 31, 2017 and 2016 (Unaudited), and December 31, 2016
8
1. General Information
Hyundai Card Co., Ltd. (the Company or the Parent Company), which is a controlling company
in accordance with Korean International Financial Reporting Standards (“Korean IFRS”) 1110
Consolidated Financial Statements, is engaged in the credit card business under the
Specialized Credit Financial Business Law of Korea, with its headquarters located at 3,
Uisadang-daero, Yeongdeungpo-gu, Seoul. On June 15, 1995, the Company acquired the
credit card business of Korea Credit Circulation Co., Ltd., and on June 16, 1995, the Korean
government granted permission to the Company to engage in the credit card business. The
Company operates its business under the Specialized Credit Financial Business Act and other
relevant applicable regulations.
As at March 31, 2017, the Company has approximately 6.41 million card members, 2.29 million
registered merchants, and 121 marketing centers and branches.
As at March 31, 2017, the total ordinary shares of the Company is ￦ 802,326 million after
several capital increase and retirement of treasury shares. The shareholders as at March 31,
2017 and December 31, 2016, are as follows:
Number of
shares
Percentage of
ownership
(%)
Number of
shares
Percentage of
ownership
(%)
Hyundai Motor Co., Ltd. 59,301,937 36.96% 59,301,937 36.96%
Kia Motors Co., Ltd. 18,422,142 11.48% 18,422,142 11.48%
Hyundai Commercial Inc. 39,378,026 24.54% 8,889,622 5.54%
Consumer Preferred Choice Limited 1
16,046,527 10.00% - -
Complete Logistic Solutions Limited 1
14,441,876 9.00% - -
AlpInvest Partners Co-Investments 2015
I SPV B.V. 1
7,101,393 4.43% - -
AlpInvest Partners Co-Investments 2015
II SPV B.V. 1
707,652 0.44% - -
AlpInvest Mich SPV B.V. 1
214,221 0.13% - -
IGE USA Investments1
- - 69,000,073 43.00%
Others 4,851,512 3.02% 4,851,512 3.02%
160,465,286 100.00% 160,465,286 100.00%
1IGE USA Investments sold 69,000,073 ordinary shares (ownership interest : 43%) of the
Company, in accordance with the share transfer agreement entered on February 1, 2017, to
Hyundai Commercial Inc., Consumer Preferred Choice Limited, Complete Logistic Solutions
Limited, AlpInvest Partners Co-Investments 2015 I SPV B.V., AlpInvest Partners Co-
Investments 2015 II SPV B.V. and AlpInvest Mich SPV B.V., on February 24, 2017.

9
1.1 Consolidated Subsidiaries
Details of the consolidated subsidiaries as at March 31, 2017 and December 31, 2016, are as
follows:
March 31,
2017
December
31, 2016
Main business Location
Ownership interest held
by the Group (%)
Closing
month
Prvia 4th SPC1 Asset securitization Korea 0.5 0.5 December
Privia 5th SPC1 Asset securitization Korea 0.5 0.5 December
Super Series 1st SPC1 Asset securitization Korea 0.5 0.5 December
Super Series 2nd SPC1 Asset securitization Korea 0.5 0.5 December
Super Series 3rd SPC1 Asset securitization Korea 0.5 0.5 December
Super Series 4th SPC1 Asset securitization Korea 0.5 - December
Bluewalnut Co., Ltd. Electronic banking Korea 100 100 December
Money Market Trust Trust business Korea 100 100 -
1 In determining power over subsidiaries except for Bluewalnut Co., Ltd. and Money Market
Trust, voting rights or similar rights are not major components, accordingly, these
subsidiaries are considered as structured entities.
Above subsidiaries except for Money Market Trust and Bluewalnut Co., Ltd. are special
purpose companies (SPCs) that were established for business activities of consolidated
entities. The Parent Company, Hyundai Card Co., Ltd., is considered to have control over
SPCs as the Parent Company has involved in purpose and design of SPC establishments and
the Parent Company is exposed to certain risks and rewards of SPCs.
Also, all the decision-making processes of SPCs are operated on autopilot by arrangements
and articles of association, and the Parent Company has ability to make changes in
arrangements and articles of association. Accordingly, the Parent Company included SPCs
under consolidation.
Meanwhile, when event of default occurs from derivative contracts regarding asset-backed
securities issued by SPCs, counterparties of the derivative contracts can claim for
reimbursement from the Parent Company.
2. Significant Accounting Policies
2.1 Basis of preparation
The Group maintains its accounting records in Korean won and prepares statutory financial
statements in the Korean language (Hangul) in accordance with International Financial
Reporting Standards as adopted by the Republic of Korea (Korean IFRS). The accompanying
consolidated interim financial statements have been condensed, restructured and translated
into English from the Korean language financial statements.

10
Certain information attached to the Korean language financial statements, but not required for
a fair presentation of the Group's financial position, financial performance or cash flows, is not
presented in the accompanying consolidated interim financial statements.
The Group’s consolidated interim financial statements for the three-month period ended March
31, 2017, have been prepared in accordance with Korean IFRS 1034 Interim Financial
Reporting. These consolidated interim financial statements have been prepared in accordance
with Korean IFRS which is effective or early adopted as at March 31, 2017.
(a) New and amended standards adopted by the Group
The Group has applied the following standards and amendments for the first time for their
annual reporting period commencing January 1, 2017. The adoption of these amendments
did not have any impact on the current period or any prior period and is not likely to affect
future periods.
- Amendments to Korean IFRS 1007 Statement of Cash Flows
Amendments to Korean IFRS 1007 Statement of Cash flows require to provide disclosures
that enable users of financial statements to evaluate changes in liabilities arising from
financing activities, including both changes arising from cash flows and non-cash flows.
- Amendments to Korean IFRS 1012 Income Tax
Amendments to Korean IFRS 1012 clarify how to account for deferred tax assets related to
debt instruments measured at fair value. Korean IFRS 1012 provides requirements on the
recognition and measurement of current or deferred tax liabilities or assets. The
amendments issued clarify the requirements on recognition of deferred tax assets for
unrealized losses, to address diversity in practice.
(b) New standards and interpretations not yet adopted by the Group
Certain new accounting standards and interpretations that have been published that are not
mandatory for annual reporting period commencing January 1, 2017 and have not been
early adopted by the Group are set out below.
- Amendments to Korean IFRS 1102 Share-based Payment
Amendments to Korean IFRS 1102 clarify accounting for a modification to the terms and
conditions of a share-based payment that changes the classification of the transaction from
cash-settled to equity-settled. And also, clarifies that the measurement approach should treat
the terms and conditions of a cash-settled award in the same way as for an equity-settled
award. This amendment will be effective for annual periods beginning on or after January 1,
2018, with early adoption permitted. The Group does not expect the amendments to have a
significant impact on the consolidated financial statements.

11
- Korean IFRS 1109 Financial Instruments
The new standard for financial instruments issued on September 25, 2015 are effective for
annual periods beginning on or after January 1, 2018 with early application permitted. This
standard will replace Korean IFRS 1039 Financial Instruments: Recognition and
Measurement. The Group will apply the standards for annual periods beginning on or after
January 1, 2018.
The standard requires retrospective application with some exceptions. For example, an
entity is not required to restate prior period in relation to classification and measurement
(including impairment) of financial instruments. The standard requires prospective
application of its hedge accounting requirements for all hedging relationships except the
accounting for time value of options and other exceptions.
Korean IFRS 1109 Financial Instruments requires all financial assets to be classified and
measured on the basis of the entity’s business model for managing financial assets and the
contractual cash flow characteristics of the financial assets. A new impairment model, an
expected credit loss model, is introduced and any subsequent changes in expected credit
losses will be recognized in profit or loss. Also, hedge accounting rules amended to extend
the hedging relationship, which consists only of eligible hedging instruments and hedged
items, qualifies for hedge accounting.
An effective implementation of Korean IFRS 1109 requires preparation processes including
financial impact assessment, accounting policy establishment, accounting system
development and the system stabilization. The impact on the Group’s financial statements
due to the application of the standard is dependent on judgements made in applying the
standard, financial instruments held by the Group and macroeconomic variables.
With the implementation of Korean IFRS 1109, the Group is preparing for internal
management process and beginning to adjust accounting system for financial instruments
reporting. Also, the Group is analyzing the financial effects of applying the standard.
However, the following areas are likely to be affected in general.
(a) Classification and Measurement of Financial Assets
When implementing Korean IFRS 1109, the classification of financial assets will be driven by
the Group’s business model for managing the financial assets and contractual terms of cash
flow. The following table shows the classification of financial assets measured subsequently
at amortized cost, at fair value through other comprehensive income and at fair value
through profit or loss. If a hybrid contract contains a host that is a financial asset, the
classification of the hybrid contract shall be determined for the entire contract without
separating the embedded derivative.

12
Business model for the
contractual cash flows
characteristics
Solely represent payments of
principal and interest
All other
Hold the financial asset for
the collection of the
contractual cash flows
Measured at amortized cost1
Recognized at fair value
through profit or loss2
Hold the financial asset for
the collection of the
contractual cash flows and
trading
Recognized at fair value through
other comprehensive income 1
Hold for trading
Recognized at fair value through
profit or loss
1 A designation at fair value through profit or loss is allowed only if such designation
mitigates an accounting mismatch (irrevocable).
2 Equity investments not held for trading can be recorded in other comprehensive income
(irrevocable).
With the implementation of Korean IFRS 1109, the criteria to classify the financial assets at
amortized cost or at fair value through other comprehensive income are more strictly
applied than the criteria applied with Korean IFRS 1039. Accordingly, the financial assets at
fair value through profit or loss may increase by implementing Korean IFRS 1109 and may
result an extended fluctuation in profit or loss.
As at March 31, 2017, the Group owns card assets and other financial assets of
11,933,861 million, financial assets available-for-sales of 1,767 million and financial
assets at fair value thorough profit or loss of 768,919 million.
According to Korean IFRS 1109, a debt instrument is measured at amortized cost if: a) the
objective of the business model is to hold the financial asset for the collection of the
contractual cash flows, and b) the contractual cash flows under the instrument solely
represent payments of principal and interest. As at March 31, 2017, the Group measured
card assets and other financial assets of 11,933,861 million at amortized costs.
According to Korean IFRS 1109, a debt instrument is measured at fair value through other
comprehensive income if the objective of the business model is achieved both by collecting
contractual cash flows and selling financial assets; and the contractual cash flows
represents solely payments of principal and interest on a specific date under contract terms.
As at March 31, 2017, the Group does not hold debt instruments classified as financial
assets available-for-sale.
According to Korean IFRS 1109, equity instruments that are not held for trading, the Group
can make an irrevocable election at initial recognition to classify the instruments as assets
measured at fair value through other comprehensive income, which all subsequent changes

13
in fair value being recognized in other comprehensive income and not recycled to profit or
loss. As at March 31, 2017, the Group holds equity instruments of 1,767 million classified
as financial assets available-for-sale and there is no recycled unrealized gain or loss arose
from the equity instruments to profit or loss.
According to Korean IFRS 1109, debt instruments those contractual cash flows do not
represent solely payments of principal and interest and held for trading, and equity
instruments that are not designated as instruments measured at fair value through other
comprehensive income are measured at fair value through profit or loss. As at March 31,
2017, the Group holds debt and equity instruments classified as financial assets at fair
value through profit or loss that amount to 594,514 million and 160,014 million,
respectively.
(b) Impairment: Financial Assets and Contract Assets
Korean IFRS 1109 sets out a new forward looking ‘expected loss’ impairment model which
replaces the incurred loss model under Korean IFRS 1039 that impaired assets if there is
an objective evidence and applies to:
ž Financial assets measured at amortized cost
ž Debt investments measured at fair value through other comprehensive income, and
ž Certain loan commitments and financial guaranteed contracts.
Under Korean IFRS 1109 ‘expected loss’ model, a credit event (or impairment ‘trigger’) no
longer has to occur before credit losses are recognized. The Group will always recognize
(at a minimum) 12-month expected credit losses in profit or loss. Lifetime expected losses
will be recognized on assets for which there is a significant increase in credit risk after
initial recognition.
Stage Loss allowance
1
No significant increase in credit
risk after initial recognition1
12-month expected credit losses (expected credit
losses that result from those default events on the
financial instrument that are possible within 12
months after the reporting date)
2
Significant increase in credit risk
after initial recognition Lifetime expected credit losses (expected credit
losses that result from all possible default events
over the life of the financial instrument)3 Credit-impaired
1 If the financial instrument has low credit risk at the end of the reporting period, the Group
may assume that the credit risk has not increased significantly since initial recognition.

14
Under Korean IFRS 1109, the asset that is credit-impaired at initial recognition would
recognize all changes in lifetime expected credit losses since the initial recognition as a loss
allowance with any changes recognized in profit or loss.
As at March 31, 2017, the Group owns debt investment carries at amortized cost of
11,933,861 million (card assets and other financial assets). And, the Group recognized
loss allowance of 283,231 million for these assets.
(c) Hedge Accounting
Hedge accounting mechanics (fair value hedges, cash flow hedges and hedge of net
investments in a foreign operations) required by Korean IFRS 1039 remains unchanged in
Korean IFRS 1109, however, the new hedge accounting rules will align the accounting for
hedging instruments more closely with the Group’s risk management practices. As a general
rule, more hedge relationships might be eligible for hedge accounting, as the standard
introduces a more principles-based approach. Korean IFRS 1109 allows more hedging
instruments and hedged items to qualify for hedge accounting, and relaxes the hedge
accounting requirement by removing two hedge effectiveness tests that are a prospective
test to ensure that the hedging relationship is expected to be highly effective and a
quantitative retrospective test (within range of 80-125 %) to ensure that the hedging
relationship has been highly effective throughout the reporting period.
With implementation of Korean IFRS 1109, volatility in profit or loss may be reduced as
some items that were not eligible as hedged items or hedging instruments under Korean
IFRS 1039 are now eligible under Korean IFRS 1109.
- Korean IFRS 1115 Revenue from Contracts with Customers
The Group will apply Korean IFRS 1115 Revenue from Contracts with Customers issued on
November 6, 2015 for annual reporting periods beginning on or after January 1, 2018. Earlier
adoption is permitted under Korean IFRS. This standard replaces Korean IFRS 1018
Revenue, Korean IFRS 1011 Construction Contracts, Interpretation 2031 Revenue-Barter
Transactions Involving Advertising Services, Interpretation 2113 Customer Loyalty
Programs, Interpretation 2115 Agreements for the Construction of Real Estate and
Interpretation 2118 Transfers of assets from customers.
The Group must apply Korean IFRS 1115 Revenue from Contracts with Customers within
annual reporting periods beginning on or after January 1, 2018, and will apply the standard
retrospectively to prior reporting period presented in accordance with Korean IFRS 1008
Accounting Policies, Changes in Accounting Estimates and Errors and apply simplified
transition method with no restatement for completed contracts and other as at January 1,
2017.

15
The new standard is based on the principle that revenue is recognized when control of a
good or service transfers to a customer so the notion of control replaces the existing notion
of risks and rewards. A new five-step process must be applied before revenue from contract
with customer can be recognized:
ž Identify contracts with customers
ž Identify the separate performance obligation
ž Determine the transaction price of the contract
ž Allocate the transaction price to each of the separate performance obligations, and
ž Recognize the revenue as each performance obligation is satisfied.
As at March 31, 2017, the Group is analyzing the financial effects of applying the standard.
2.2 Significant Accounting Policies
Significant accounting policies and method of computation used in the preparation of the
condensed consolidated interim financial statements are consistent with those of the
consolidated financial statements for the year ended December 31, 2016, except for the
changes due to the application of amendment and enactments of standards described in
Note 2.1 (a) and the one described below.
2.2.1 Income Tax Expense
Income tax expense for the interim period is recognized based on management’s best
estimate of the weighted average annual income tax rate expected for the full financial year.
The estimated average annual tax rate is applied to the pre-tax income.
3. Critical Accounting Estimates and Assumptions
The Group makes estimates and assumptions concerning the future. Estimates and
assumptions are continually evaluated and are based on historical experience and other
factors, including expectations of future events that are believed to be reasonable under the
current circumstances. Actual results may differ from these estimates.
Significant accounting estimates and assumptions applied in the preparation of these
condensed consolidated interim financial statements are the same as those that applied to
the consolidated financial statements for the year ended December 31, 2016, except for the
estimates used to determine income tax expense.
4. Restricted Financial Assets
Details of restricted financial assets as at March 31, 2017 and December 31, 2016, are as
follows:

16
(in millions of Korean won) March 31,
2017
December
31, 2016 Description
Cash and cash
equivalents
Kookmin Bank and
others
18 18
Guarantee deposits for
overdraft
Shinhan Bank and
others
30,300 30,300 Secured deposits
Citibank 77,508 27,979
Deposits related to
securitization
Mirae Asset
Securities
7 7 Social enterprise fund
Other financial
assets
Korea Asset
Management
7,123 7,123
Escrow account in relation
to a sale of Daewoo
Engineering &
Construction Co., Ltd.
114,956 65,427
5. Securities
Securities as at March 31, 2017 and December, 31 2016, are as follows:
(in millions of Korean won) March 31, 2017 December 31, 2016
Financial assets held for trading
Debt securities 594,514 814,396
Equity securities 160,014 120,015
754,528 934,411
Available-for-sale financial assets
Unlisted equity securities 1,767 1,767
756,295 936,178
6. Card Assets
Details of card assets by customers as at March 31, 2017 and December 31, 2016, are as
follows:
(in millions of March 31, 2017
Korean won)
Principal
Deferred ori-
gination
cost and fee
Present
value of
discounts
Provision for
impairment Book amount
Card receivables
Household 7,502,274 (13,511) (8,591) (80,723) 7,399,449
Corporates 512,626 - - (2,676) 509,950

17
Short-term card loan
(cash advances)
Household 824,654 - - (29,605) 795,049
Long-term card loan
(card loans)
Household 3,235,617 - (726) (168,287) 3,066,604
12,075,171 (13,511) (9,317) (281,291) 11,771,052
(in millions of December 31, 2016
Korean won)
Principal
Deferred ori-
gination
cost and fee
Present
value of
discounts
Provision for
impairment Book amount
Card receivables
Household 7,720,393 (12,756) (7,929) (83,019) 7,616,689
Corporates 569,827 - - (2,868) 566,959
Short-term card loan
(cash advances)
Household 854,784 - - (30,728) 824,056
Long-term card loan
(card loans)
Household 3,220,050 - (732) (167,123) 3,052,195
12,365,054 (12,756) (8,661) (283,738) 12,059,899
7. Provisions for Impairment
Changes in provisions for impairment for the three-month periods ended March 31, 2017 and
2016, are as follows:
(in millions of 2017
Korean won)
Card
receivables
Short-term
card loan
(cash
advances)
Long-term
card loan
(card loans) Other assets Total
Beginning balance 85,887 30,728 167,123 3,437 287,175
Written-off (815) (290) (1,020) - (2,125)
Recovered 91 54 51 - 196
Disposal and repurchase (5,376) (3,053) (6,301) - (14,730)
Additional (reversal of)
provisions 3,613 2,166 8,434 (877) 13,336
Ending balance 83,400 29,605 168,287 2,560 283,852

18
Korean won)
Card
receivables
Short-term
card loan
(cash
advances)
Long-term
card loan
(card loans) Other assets Total
Written-off (218) (98) (151) - (467)
Recovered 133 184 78 - 395
Disposal and repurchase (5,691) (3,338) (6,056) - (15,085)
Additional provisions 7,178 4,399 8,435 800 20,812
Ending balance 78,103 34,015 148,223 4,013 264,354
8. Property and Equipment
Changes in property and equipment for the three-month periods ended March 31, 2017 and
Korean won)
Land Buildings Vehicles
Furniture
and
supplies
Construction
-in-progress Total
Beginning balance 141,136 ￦ 111,978 ￦ 2,075 ￦ 73,007 ￦ 35,075 ￦ 363,271
Acquisitions - - - 3,820 2,974 6,794
Reclassification - - - 7,903 (8,050) (147)
Disposal - - - (344) - (344)
Depreciation - (797) (47) (8,305) - (9,149)
Ending balance 141,136 ￦ 111,181 ￦ 2,028 ￦ 76,081 ￦ 29,999 ￦ 360,425
Korean won)
Land Buildings Vehicles
Furniture
and
supplies
Construction
-in-progress Total
Acquisitions - - - 1,409 5,174 6,583
Reclassification - - - 2,457 (2,546) (89)
Disposal - - - (350) - (350)
Depreciation - (758) (46) (8,039) - (8,843)
Ending balance 141,136 ￦ 107,959 ￦ 2,214 ￦ 79,879 ￦ 16,717 ￦ 347,905

19
9. Intangible Assets
Changes in intangible assets for the three-month periods ended March 31, 2017 and 2016,
are as follows:
Korean won) Developm-
ent cost Software Others
Construction
-in-progress
Members-
hip Total
Beginning balance 75,467 ￦ 20,301 ￦ 824 ￦ 8,283 ￦ 19,811 ￦ 124,686
Acquisitions 3,380 69 - 2,664 - 6,113
Reclassification 4,417 176 - (4,593) - -
Disposal - (19) - - - (19)
Amortization (7,033) (1,925) (88) - - (9,046)
Ending balance 76,231 ￦ 18,602 ￦ 736 ￦ 6,354 ￦ 19,811 ￦ 121,734
Korean won) Developm-
ent cost Software Others
Construction
-in-progress
Members-
hip Total
Acquisitions 994 284 - 775 - 2,053
Reclassification 1,588 75 - (1,667) - (4)
Disposal - - - - (600) (600)
Amortization (6,945) (2,036) (330) - - (9,311)
Ending balance 81,683 ￦ 22,402 ￦ 1,160 ￦ 3,955 ￦ 20,023 ￦ 129,223
10. Borrowings
Details of borrowings as at March 31, 2017 and December 31, 2016, are as follows:
(in millions of Korean won) Annual interest
rate (%)
March 31,
2017
December
31, 2016
Short-term borrowings
Commercial Paper KEB Hana Bank and 3 others 1.71 ~ 1.99 200,000 100,000
Borrowings Kookmin Bank and 8 others 2.34 ~ 2.73 405,000 405,000
605,000 505,000
Current portion of long-term borrowings:
Borrowings Standard Charted Bank 3.76 70,000 20,000

20
Long-term borrowings
Commercial Paper
KTB Investment Bank and
7 others
1.62 ~ 2.01 1,070,000 790,000
Borrowings Woori Bank and other 2.83 ~ 2.93 150,000 200,000
1,220,000 990,000
1,895,000 1,515,000
Details of debentures as at March 31, 2017 and December 31, 2016, are as follows:
(in millions of Korean won) Annual interest
rate (%) Maturity
March 31,
2017
December
31, 2016
Short-term debentures 1.63 2018.02.06 70,000 -
Current portion of debentures 1.53 ~ 5.50
2017.04.03 ~
2018.03.29 2,933,779 3,468,465
Long-term debentures 1.36 ~ 5.46
2018.04.02 ~
2026.11.01 4,678,880 4,972,800
7,682,659 8,441,265
Less: Discounts on debenture (7,344) (8,394)
7,675,315 8,432,871
The outstanding debenture is non-guaranteed corporate bonds, with their principals to be
redeemed either by installment or at maturity. Bond issuance costs are recorded as discounts
on debenture and amortized using the effective interest rate method.
11. Post-employment Benefits
11.1 Defined Contribution Plan
The expense recognized in the consolidated interim statements of comprehensive income
related to post-employment benefit under the defined contribution plan for the three-month
periods ended March 31, 2017 and 2016, is as follows:
(in millions of Korean won) 2017 2016
Defined contribution plan 44 35
11.2 Net Employee Benefit Liabilities
Details of net employee benefit liabilities as at March 31, 2017 and December 31, 2016, are
as follows:

21
Net defined benefit liabilities 12,688 9,462
Long-term employee benefit liabilities 4,463 4,644
17,151 14,106
11.3 Defined Benefit Plan
(a) General
The Group operates a defined benefit plan for qualified employees by applying the last three
months’ average salary and length of service, etc. Plan assets mainly consist of deposits,
and are exposed to risk of lower interest rate.
(b) Net defined benefit liabilities
Changes in present value of net defined benefit liabilities for the three-month periods ended
March 31, 2017 and 2016, are as follows:
(in millions of Korean won) 2017
Present value
of the defined
benefit
obligation Plan assets
National
pension fund
Net defined
benefit
liabilities
Beginning balance 85,965 (76,486) (17) 9,462
Current service cost 3,291 - - 3,291
Interest expense (income) 547 (490) - 57
Return on plan assets
(excluding amounts
included in interest income) - 294 - 294
Actuarial loss (gain) from
change in financial
assumptions (783) - - (783)
Transfer of employees
between the Company and
its related companies 731 (284) - 447
Benefits paid (1,718) 1,638 - (80)
Ending balance 88,033 (75,328) (17) 12,688
Present value
of the defined
benefit
obligation Plan assets
National
pension fund
Net defined
benefit
liabilities
Beginning balance 81,458 (62,238) (21) 19,199
Current service cost 3,600 - - 3,600
Interest expense (income) 485 (374) - 111

22
Return on plan assets
(excluding amounts
included in interest income) - 125 - 125
Actuarial loss (gain) from
change in financial
assumptions 3,022 - - 3,022
Transfer of employees
between the Company and
its related companies (516) 296 5 (215)
Benefits paid (588) 1,097 - 509
Ending balance 87,461 (61,094) (16) 26,351
11.4 Long-term Employee Benefits
Changes in present value of long-term employee benefit liabilities for the three-month
periods ended March 31, 2017 and 2016, are as follows:
Beginning balance 4,644 4,407
Current service cost 130 132
Interest expense 30 29
Actuarial losses (gains) (32) 141
Benefits paid (309) (160)
Ending balance 4,463 4,549
12. Provisions
Changes in provisions for the three-month periods ended March 31, 2017 and 2016, are as
follows:
(in millions of
Korean won) 2017
Unused
commitment Point
Provision for
restoration Others Total
Increase (decrease) 1,756 (2,597) (653) (601) (2,095)
Ending balance 58,937 20,893 5,057 13,591 98,478
(in millions of
Korean won) 2016
Unused
commitment Point
Provision for
restoration Others Total
Increase (decrease) 1,455 (1,659) (182) - (386)
Ending balance 54,543 26,830 6,154 8,147 95,674

23
Other provisions include provision for deposits in escrow account and for pending litigations
amounting to ￦2,233 million and ￦5,139 million, respectively, as at March 31, 2017.
13. Derivatives and Hedge Accounting
There are no derivative instruments held for trading as at March 31, 2017 and December 31,
2016.
Cash flow hedge
The Group removes the volatility risk of future cash flow of a hedged item, such as
borrowings, caused by changes in market interest rates or in foreign currency rates by using
derivative instruments, such as an interest rate swap or currency swap.
Details of derivative assets and liabilities as at March 31, 2017 and December 31, 2016, are
as follows:
(in millions of March 31, 2017
Korean won)
Unsettled
contract
amount Asset Liabilities
Accumulated
other
comprehensive
income1
Interest rate swap 1,145,000 1,454 7,039 (4,242)
Currency swap 1,108,659 12,938 38,213 (2,499)
2,253,659 14,392 45,252 (6,741)
(in millions of December 31, 2016
Korean won)
Unsettled
contract
amount Asset Liabilities
Accumulated
other
comprehensive
income1
Interest rate swap 1,235,000 1,468 8,876 (5,629)
Currency swap 1,317,265 80,459 - (3,800)
2,552,265 81,927 8,876 (9,429)
1 Amount reflects tax effect.
For transactions between local and foreign currencies, the unsettled contract amount of
transaction is translated by applying the basic foreign exchange rate at the end of reporting
period to the contract amount in foreign currencies. For transactions between foreign
currencies and other foreign currencies, the unsettled contract amount is the amounts
translated by applying the basic foreign exchange rate at the end of reporting period to the
contract amount in foreign currencies purchased.
The maximum period for the Group exposed to the variability in future cash flows arising
from derivatives designated as cash flow hedges is expected to be until June 21, 2021.

24
Meanwhile, there is no ineffective portion recognized related to cash flow hedge for the
three-month periods ended March 31, 2017 and 2016.
14. Retained Earnings
Retained earnings as at March 31, 2017 and December 31, 2016, consist of:
Legal reserves1 45,127 45,127
Reserve for credit losses (Note 16) 657,774 640,026
Unappropriated retained earnings 1,212,644 1,177,198
1,915,545 1,862,351
1 The Commercial Code of the Republic of Korea requires the Parent Company to
appropriate for each financial period, as a legal reserve, an amount equal to a minimum of
10% of cash dividends paid until such reserve equals 50% of its issued share capital. The
reserve is not available for cash dividends payment, but may be transferred to share capital
or used to reduce accumulated deficit.
Changes in retained earnings for the three-month periods ended March 31, 2017 and 2016,
are as follows:
Beginning balance 1,862,351 1,672,385
Profit for the period 53,194 53,584
Ending balance 1,915,545 1,725,969
15. Accumulated Other Comprehensive Income
Changes in accumulated other comprehensive income for the three-month periods ended
March 31, 2017 and 2016, are as follows:
(in millions of Korean
won) 2017
Changes
Beginning
balance
Reclassification
of profit or loss Other Tax effects
Ending
balance
Gain (loss) on valuation of
derivatives (9,429) 483 3,050 (845) (6,741)
Remeasurements of net
defined benefit liabilities (19,144) - 489 (108) (18,763)
(28,573) 483 3,539 (953) (25,504)

25
won) 2016
Changes
Beginning
balance
Reclassification
of profit or loss Other Tax effects
Ending
balance
Gain (loss) on valuation of
derivatives (17,142) 7 (3,793) 777 (20,151)
Remeasurements of net
defined benefit liabilities (21,242) - (3,147) 600 (23,789)
(38,384) 7 (6,940) 1,377 (43,940)
16. Reserves for Credit Losses
Details of reserves for credit losses as at March 31, 2017 and December 31, 2016, are as
follows:
Accumulated reserves for credit losses 657,774 640,026
Estimated provision (reversal) of reserves for
credit losses (11,233) 17,748
Reserves for credit losses 646,541 657,774
Estimated provision (reversal) of reserves for credit losses and adjusted profit after provision
(reversal) of reserves for credit losses for the three-month periods ended March 31, 2017
and 2016, are as follows:
Provision (reversal) of reserves for credit losses (11,233) 2,680
Adjusted profit after provision of reserves for
credit losses 64,427 50,904
Earnings per share after provision of reserves
for credit losses (in Korean won) 402 317
17. Card Income and Expense
Details of card income and expense for the three-month periods ended March 31, 2017 and
Card income
Agent commission 338,374 313,765
Income from installment service 45,815 33,670

26
Income from cash advance 30,783 30,521
Income from card loan 123,376 127,241
Revolving interest income 47,467 50,801
Overseas income commission 7,520 6,548
Income from annual subscription 42,797 43,002
Others 40,899 48,072
677,031 653,620
Card expense
Acquisition fee 52,478 59,573
Promotion 69,495 25,193
Service fee 155,023 150,315
Financial service fee 1,950 2,160
A new credit sale handling fee 33,033 36,394
Overseas payment fee 14,740 12,038
Card issuance expenses 5,613 5,316
Others 7,077 11,691
339,409 302,680
Net card income 337,622 350,940
18. Net Interest Expense
Interest income and expense for the three-month periods ended March 31, 2017 and 2016,
are as follows:
Interest income:
Cash and bank deposit 4,078 5,034
Others 512 223
4,590 5,257
Interest expense
Borrowings 9,226 4,190
Debentures 52,034 62,576
Others 26 28
61,286 66,794
(56,696) (61,537)
19. Other Operating Income and Expenses
Other operating income and expense for the three-month periods ended March 31, 2017 and

27
Other operating income
Gain on foreign currency transactions 11,515 4,133
Gain on foreign currency translations 91,784 12,765
Others 17,226 8,380
120,525 25,278
Other operating expenses
Loss on foreign currency transactions 1,149 1,428
Loss on derivatives transactions 6,670 -
Loss on valuation of derivatives 91,784 12,765
Others 8,937 6,604
108,540 20,797
20. Selling and Administrative Expenses
Details of selling and administrative expenses for the three-month periods ended March 31,
2017 and 2016, are as follows:
Salaries 30,215 36,340
Post-employment benefits 4,780 3,747
Employee benefits 7,498 7,936
Travel expenses 796 621
Communication expenses 8,957 7,671
Postal expenses 4,283 3,924
Rental expenses 7,384 6,231
Taxes and dues 5,842 5,894
Repair and maintenance expenses 286 328
Insurance premiums 51 64
Entertainment expenses 107 104
Advertising expenses 11,243 10,307
Supply expenses 968 565
Vehicle maintenance expenses 3 3
Periodicals expenses 94 93
Publication expenses 1,588 1,824
Training expenses 1,111 902
Electronic data processing expenses 12,665 11,738
Expense for temporary staff 1,423 1,563

28
Professional service expenses 38,566 32,582
Delivery commission 316 339
Commission expenses 8,551 7,329
Business activity expenses 758 564
Depreciation 9,149 8,843
Amortization 9,046 9,311
Event expenses 249 678
Conference expenses 71 71
Building administrative expenses 2,330 2,081
168,330 161,653
21. Tax Expense
Income tax expense for the three-month periods ended March 31, 2017 and 2016, consists
of:
Current tax on profits for the period (including
additional payment of tax and income tax
refund) 18,788 14,213
Changes in deferred tax assets (1,310) 3,895
Income tax expense reflected directly to equity (953) 1,377
Income tax expense 16,525 19,485
Income tax expenses reflected directly to equity for the three-month periods ended March
31, 2017 and 2016, are as follows:
Beginning
balance
Decrease
Ending
balance
Tax effect related to cash flow
hedging reserve loss 2,980 (845) 2,135
Tax effect related to
remeasurements of net
defined benefit liabilities 6,050 (108) 5,942
9,030 (953) 8,077

29
Beginning
balance
Increase
Ending
balance
Tax effect related to cash flow
hedges 5,413 777 6,190
Tax effect related to
remeasurements of net
defined benefit liabilities 6,708 600 7,308
12,121 1,377 13,498
The tax on the Group’s profit before tax differs from the theoretical amount that would arise
using the weighted average tax rate applicable to profits of the Group as follows:
Profit before income tax 69,720 73,069
Tax at domestic tax rates applicable to profits in
the respective countries1 16,410 17,221
Adjustments:
Others 115 2,264
115 2,264
Income tax expense for continuing operations 16,525 19,485
Effective tax rates 23.70% 26.67%
1 Applicable income tax rate: 1) 11% for below ￦200 million, 2) 22% for ￦200 million to
￦20 billion and 3) 24.2% for above ￦20 billion.
22. Consolidated Interim Statements of Cash Flows
Details of cash and cash equivalents as at March 31, 2017 and December 31, 2016, are as
follows:
Current deposit 343 362
Ordinary deposit 143,231 116,199
Time deposit 3,900 4,800
Other cash and cash equivalents 379,832 423,433
527,306 544,794
Cash generated from operations for the three-month periods ended March 31, 2017 and

30
Adjustments:
Income tax expense 16,525 19,485
Interest income (4,590) (5,257)
Interest expense 61,286 66,794
Dividends received (129) (136)
Impairment loss and losses on disposal of
receivables 51,547 58,616
Post-employment benefits 3,392 3,747
Long-term employee benefits - 302
Depreciation 9,149 8,843
Amortization 9,047 9,311
Losses on valuation of derivatives 91,784 12,765
Increase in provision for unused commitment 1,756 1,455
Losses on disposal of property, plant and
equipment 65 41
Losses on disposal of intangible assets - 25
Sales promotional expenses 8,614 8,852
Reversal of provision (3,213) (1,892)
Other operating expenses 701 144
Gains on valuation of financial assets held for
trading (1,215) (1,020)
Gains on disposal of available-for-sale
financial assets (22) (16)
Amortization of present value of discounts of
card assets (8,039) (8,924)
Amortization of deferred origination cost and
fee of card assets (7,824) (6,213)
Gains on foreign currency translation (91,784) (12,765)
Gains on disposal of property, plant and
equipment (16) (93)
Gains on disposal of intangible assets (1) (10)
Other operating income - (6)
137,033 154,048
Changes in operating assets and liabilities:
Decrease (increase) in financial assets held
for trading 181,098 (105,887)
Decrease in card assets 243,672 211,815
Increase in deposits - (14,400)
Decrease (increase) in other assets (20,345) 7,297
Decrease (increase) in guarantee deposits
provided 2,530 (2,389)

31
Increase (decrease) in net employee benefit
liabilities 58 (376)
Decrease in provisions for others (601) -
Decrease in other liabilities (227,158) (92,164)
179,254 3,896
Cash generated from operations 369,481 211,528
Changes in liabilities arising from financing activities
Changes in liabilities arising from financing activities during the three-month period ended
March 31, 2017, are as follows:
won) Changes in non-cash transactions
Beginning
balance Cash flow
Exchange
differences
Current
portion Others
Ending
balance
Short-term borrowings1 525,000 100,000 - 50,000 - 675,000
Long-term borrowings 990,000 280,000 - (50,000) - 1,220,000
Short-term debentures2
3,467,094 (932,612) (17,864) 499,868 (13,917) 3,002,569
Long-term debentures 4,965,777 279,724 (73,920) (499,868) 1,033 4,672,746
9,947,871 (272,888) (91,784) - (12,884) 9,570,315
1 It includes current portion of long-term borrowings.
2 It includes current portion of long-term debentures.
23. Contingencies and Commitments
(a) Credit line agreement
The followings is credit line agreement as at March 31, 2017 and December 31, 2016.
won)
Financial instrument March 31, 2017 December 31, 2016
Intraday overdraft limit
Woori Bank and
six others
420,000 440,000
(b) Revolving credit facility
As the Group has a revolving credit facility agreement with many financial institutions for
credit line as at March 31, 2017, the Group made a revolving credit facility agreement for
1,169 billion with Kookmin Bank and 13 others for credit line as at March 31, 2017.

32
(c) Pending litigations
As at March 31, 2017, the Group is involved in 15 cases (29,410 million) as a defendant, 4
cases (17,999 million) as a plaintiff and the cases for debt collection against multiple
debtors in the important pending litigations. The Group records 5,139 million for other
provisions regarding the cases as a defendant. Management of the Group does not
anticipate that these pending litigations referred above will have a significant effect on the
Group’s consolidated interim financial statements (Note 12).
(d) Deposit for loss reimbursement
As at March 31, 2017, the Group has deposits of 2,233 million and 4,890 million of
proceeds and interests, respectively, from the sale of Daewoo Engineering & Construction
Co., Ltd.’s shares in an escrow account and records 2,233 million and 4,467 million for
provision of proceeds and interests, respectively, from the litigation relating to the sale of
Daewoo Engineering & Construction Co., Ltd.’s shares (Note 12).
(e) Contract of sale of receivables
The Group entered into a contract with Hyundai Capital Services, Inc. relating to its sale of
receivables on January 24, 2006. In accordance with the contract, the Group sells the
receivables that are 60 days or more past due or written off (partially including receivables
that are before 60 days) to Hyundai Capital Services, Inc. Such sale occurs five times a
month on designated cutoff dates at the amount calculated using a predetermined price
pursuant to the contract.
(f) Reserve for loss reimbursement
The Group has the obligation to reimburse customers for fraudulent credit card activities; the
Group records the expected losses as an accrued expense.
(g) Insurance for the implementation of the liability for damages
The Group has insured a value of 1 billion for the implementation of the liability for
damages in accordance with the Article 43 of Credit Information Act.
(h) Security on the receivables sold relating to asset-backed securitization
The Group continuously transfers receivables to maintain a certain level of its equity in the
second series beneficiary certificates relating to the asset-backed securitization.
(i) Early redemption rule associated with asset-backed securitization
According to the agreement on the Group’s asset-backed securitization, in order to enhance
the credit level of the asset-backed securities, several provisions are in place as trigger
clauses to be used for early redemption calls, thereby limiting the risk that the investors are

33
exposed to resulting from a change in quality of the assets in the future. In the event the
asset-backed securitization of the Group is in violation of the applicable trigger clause, the
Group is obliged to make early redemption for the asset-backed securities.
24. Related Party Transactions
As at March 31, 2017, details of the related parties are as follows:
Companies
Parent company Hyundai Motor Company
Other related parties HMC Investment Securities, Hyundai Capital America, Green Air, Kia
Motors, Kia Tigers, Maintrans Co., Ltd., Busan Finance Center AMC,
Seoul PMC, HL Green Power, WIA-MAGNA Powertrain, Eukor Car
Carriers, Innocean Worldwide, Iljin Bearing, Chunbuk Hyundai
Motors FC, GIT, Korea Credit Bureau, Hankook Economy Daily,
Haevichi Country Club, Haevichi Hotels&Resorts, Hyundai
Construction, Hyundai Glovis, Hyundai Dymos, Hyundai City
Corporation, Hyundai Life, Hyundai Rotem, Hyundai Materials,
Hyundai Mobis, Hyundai BNG Steel, Hyundai Farm Land &
Development, Hyundai Engineering & Steel Industries, Hyundai IHL,
Hyundai Energy, Hyundai Engineering, Hyundai NGV, Hyundai
MSEAT, Hyundai MNSOFT, Hyundai Auto Ever Systems, Hyundai-
autron, Hyundai WIA, Hyundai WIA IHI Turbo, Hyundai Steel
Company, HYUNDAI Architects & Engineers Assoc., Hyundai
Special Steel Company, Hyundai Capital, Hyundai Commercial,
Hyundai KEFICO, Hyundai Powertech, Hyundai Partecs and others
Sales and purchases with related parties for the three-month periods ended March 31, 2017
and 2016, are as follows:
won) 2017
Income Expense Others
Card
income
Rental
income Others
Card
expense
Selling and
administrative
expenses Others
Purchase of
property
and
equipment
Purchase
of
intangible
assets
Disposal
of assets
Parent Company
Hyundai Motor
Company 37,347 - - 3,290 202 109 - - -
Other related
parties
Hyundai Capital 180 294 7,868 3,746 707 7,459 - - 90,803
Hyundai Life 607 38 - - 1,168 - - - -
Kia Motor Company 18,034 - - - 2 30 - - -
Hyundai Auto Ever
Systems 1,058 - - - 17,710 - - 1,388 -
Hyundai Engineering 4 2 - - 2,274 - - - -
Others 935 247 291 55 1,548 2,187 2,493 - -
58,165 581 8,159 7,091 23,611 9,785 2,493 1,388 90,803

34
won) 2016
Income Expense Others
Card
income
Rental
income Others
Card
expense
Selling and
administrative
expenses Others
Purchase of
property
and
equipment
Purchase
of
intangible
assets
Disposal
of assets
Parent Company
Hyundai Motor
Company 31,636 - - 4,043 88 146 - - -
Other related
parties
Hyundai Capital 234 114 5,362 3,396 649 5,774 - - 88,994
Hyundai Life 2,258 49 - - 1,108 - - - -
Kia Motor Company 12,247 - - - 2 38 - - -
Hyundai Auto Ever
Systems 1,097 - - - 12,354 - - 910 -
Hyundai Commercial 17 189 377 17 - 619 - - -
Others 906 2 - 11 4,842 - 2,511 - -
48,395 354 5,739 7,467 19,043 6,577 2,511 910 88,994
Outstanding balances arising from sales/purchases of goods and services as at March 31,
2017 and December 31, 2016, are as follows:
(in millions of Korean won) March 31, 2017
Receivable Payable
Card assets Others Other payables Others
Parent Company
Hyundai Motor Company 30,137 2,134 42,490 -
Other related parties
Hyundai Capital 54,104 561 790 645
Hyundai Life 1,306 68,872 65 84
Kia Motor Company 18,471 - 22,353 -
Hyundai Auto Ever Systems 3,554 - 5,019 -
Hyundai Engineering 3,542 - 6 -
Others 33,300 - 4,982 524
144,414 71,567 75,705 1,253
(in millions of Korean won) December 31, 2016
Receivable Payable
Card assets Others Other payables Others
Parent Company
Hyundai Motor Company 42,130 2,133 58,134 -
Other related parties
Hyundai Capital 94,813 561 1,912 645
Kia Motor Company 20,766 - 21,601 -
Hyundai Auto Ever Systems 7,737 140 7,877 2
Hyundai Life 1,773 71,029 66 84
Hyundai Engineering 3,031 - - -
Others 37,157 - 17,268 506
207,407 73,863 106,858 1,237

35
Compensation for key management for the three-month periods ended March 31, 2017 and
Short-term employee benefits 1,289 1,770
Post-employment benefits 506 480
1,795 2,250
There were no borrowing transactions with the related parties for the three-month periods
ended March 31, 2017 and 2016.
There were no lending transactions with the related parties for the three-month periods
ended March 31, 2017 and 2016.
There are no payment guarantees and collateral provided by the Group for the financial
supports to the related parties as at March 31, 2017 and no collateral and payment
guarantees are provided by the related parties.
25. Transfers of Financial Assets
The Parent Company transferred receivables to Privia 4th SPC, Privia 5th SPC, Super
Series 1st SPC, Super Series 2nd SPC and Super Series 3rd SPC (hereafter, “SPC”) in
order to securitize assets. SPC issued subordinate asset-backed securities with transferred
receivables as underlying asset, and as the Parent Company is providing credit
reinforcement by acquiring such subordinate asset-backed securities, should any impairment
loss incurred in receivables belongs to the underlying asset, the risk preferentially belongs to
the Parent Company. SPC has recourse to drawer only in regard to the receivables
transferred. Even after transfer of receivables, the Parent Company owns majority of risks
and indemnity for such asset; hence, this transaction was accounted as secured loan.
Transferred financial assets that are not derecognized in their entirety and the associated
liabilities as at March 31, 2017 and December 31, 2016, are as follows:
(in millions of Korean won) Asset-backed card assets
Book amount of assets1 4,057,635 4,253,225
Book amount of the associated liabilities 1,703,686 1,911,372
For those liabilities that have recourse only to
the transferred financial assets:
Fair value of assets 4,075,640 4,337,820
Fair value of the associated liabilities 1,712,483 1,918,998
Net position 2,363,157 2,418,822
1 The amount is before provision for impairment.

36
26. Offsetting Financial Assets and Financial Liabilities
Derivative assets and derivative liabilities recognized by the Group can be set off in
accordance with the future events described in derivative master netting agreements.
The effects of netting agreements as at March 31, 2017 and December 31, 2016, are as
follows:
won) March 31, 2017
Amounts not offset
Recognized
financial
assets and
liabilities
Gross
financial
assets and
liabilities
set off
Net amounts
presented in
the statement
of financial
position
Financial
instruments
Cash
collateral
received Net amounts
Financial assets
Derivative assets 14,392 - 14,392 13,992 - 400
Financial liabilities
Derivative liabilities 45,252 - 45,252 13,992 - 31,260
won) December 31, 2016
Amounts not offset
Recognized
financial
assets and
liabilities
Gross
financial
assets and
liabilities
set off
Net amounts
presented in
the statement
of financial
position
Financial
instruments
Cash
collateral
received Net amounts
Financial assets
Derivative assets 81,927 - 81,927 1,323 - 80,604
Derivative liabilities 8,876 - 8,876 1,323 - 7,553
27. Fair Value
Fair value hierarchy classifications of the financial instruments that are subsequently
measured at fair value as at March 31, 2017 and December 31, 2016, are as follows:
won) March 31, 2017
Book
amount Fair value Level 1 Level 2 Level 3
Financial assets
Financial asset held
for trading 754,528 754,528 - 754,528 -
Derivatives assets 14,392 14,392 - 14,392 -
Derivatives liabilities 45,252 45,252 - 45,252 -

37
Book
amount Fair value Level 1 Level 2 Level 3
Financial assets
Financial asset held
for trading 934,411 934,411 - 934,411 -
Derivatives assets 81,927 81,927 - 81,927 -
Derivatives liabilities 8,876 8,876 - 8,876 -
Items that are measured at fair value or for which the fair value is disclosed are categorized
by the fair value hierarchy levels, and the defined levels are as follows:
ŸQuoted prices (unadjusted) in active markets for identical assets or liabilities (Level 1).
ŸAll inputs other than quoted prices included in level 1 that are observable (either directly
that is, prices, or indirectly that is, derived from prices) for the asset or liability (Level 2).
ŸUnobservable inputs for the asset or liability (Level 3).
There are no changes in fair value hierarchy level for the three-month period ended March
31, 2017.
The following table explains valuation techniques, fair value hierarchy, notable unobservable
inputs and extents, and the correlation between unobservable inputs and fair value
measurement used in Level 2 fair value measurement:
(in millions of
Korean won)
Classification
Fair value
Fair value
hierarchy
Valuation techniques
Range of
inputs
March 31,
2017
December
31, 2016
Financial assets at
fair value
through profit or
loss
Assets 754,528 934,411 Level 2 The fair value is determined by discounting
the expected cash flows with the market
interest rate considering the similar credit
grade with the debt security issuer.
N/A
Interest rate swap Assets 1,454 1,468 Level 2 Discount rates and forward rates used to
measure fair values of interest rate swap
are determined based on the applicable
constructed market-based yield curve.
The fair value is determined by offsetting
the discounted expected cash flows of
interest rate swap with the aforementioned
forward rates.
N/A
Liabilities 7,039 8,876
Currency swaps Assets
Liabilities
12,938
38,213
80,459
-
Level 2 Discount rates and forward rates used to
measure fair values of currency swaps are
determined based on the applicable
constructed market-based yield curve.
N/A

38
(in millions of
Korean won)
Classification
Fair value
Fair value
hierarchy
Range of
inputs
March 31,
2017
December
31, 2016
The trading base rate on the morning of
the report date is used as currency swap’s
exchange rate. The fair value is
determined by offsetting the discounted
expected cash flows of currency swap with
the aforementioned forward rates and
closing price.
The table below provides the fair value and book amount of financial instruments that are not
measured subsequently at fair value in the consolidated interim statements of financial
position as at March 31, 2017 and December 31, 2016.
won) March 31, 2017 December 31, 2016
Book amount Fair value Book amount Fair value
Assets
Financial assets
Cash and deposit 576,530 576,530 594,019 594,019
Card assets 11,771,052 11,843,263 12,059,899 12,639,979
Other financial assets 162,809 162,809 233,824 233,824
12,510,391 12,582,602 12,887,742 13,467,822
Liabilities
Borrowings 1,895,000 1,894,702 1,515,000 1,502,843
Debentures 7,675,315 7,781,807 8,432,871 8,552,047
Other financial liabilities 1,208,810 1,208,810 1,464,759 1,464,759
10,779,125 10,885,319 11,412,630 11,519,649
The fair valuation techniques of the financial instruments measured at amortized cost are as
follows:
Cash and deposits The carrying amounts of cash and demand due from financial institutions and
payment due from financial institutions are reasonable approximation of fair
values. These financial instruments do not have a fixed maturity and are
receivable on demand. Fair value of ordinary due from financial institutions is
measured using DCF model. However, if the remaining maturity is short at the
reporting date, the book amount is regarded as fair value.

39
Card assets DCF model is used to determine the fair value of card assets. Fair value is
determined by discounting the expected cash flows, which are contractual cash
flows adjusted by the expected prepayment rate, at appropriate discount rate.
However, if the remaining maturity is short at the reporting date, the book
amount is regarded as fair value.
Other financial assets
(Leasehold deposits
provided)
DCF model is used to determine the fair value of other financial assets. Fair
value is determined by discounting the expected cash flows, which are
contractual cash flows, at appropriate discount rate. However, if the remaining
maturity is short at the reporting date, the book amount is regarded as fair
value.
Borrowings and
debenture
Fair value is calculated by DCF model at an appropriate interest rate for
respective range of maturity.
Other financial
liabilities (Leasehold
deposits received)
DCF model is used to determine the fair value of other financial liabilities. Fair
value is determined by discounting the expected cash flows, which are
contractual cash flows, at appropriate discount rate. However, if the remaining
maturity is short at the reporting date, the book amount is regarded as fair
value.
The table below provides the fair value hierarchy of financial instruments that are not
measured subsequently at fair value in the consolidated interim statements of financial
position as at March 31, 2017 and December 31, 2016.
won) March 31, 2017
Level 1 Level 2 Level 3 Total
Financial assets
Card assets - - 11,843,263 11,843,263
Leasehold deposits
provided - 31,569 - 31,569
- 31,569 11,843,263 11,874,832
Borrowings - 1,894,702 - 1,894,702
Debentures - 7,781,807 - 7,781,807
Other financial liabilities
Leasehold deposits
received - 9,493 - 9,493
- 9,686,002 - 9,686,002

40
Level 1 Level 2 Level 3 Total
Financial assets
Card assets - - 12,639,979 12,639,979
Leasehold deposits
provided - 34,100 - 34,100
- 34,100 12,639,979 12,674,079
Borrowings - 1,502,843 - 1,502,843
Debentures - 8,552,047 - 8,552,047
Other financial liabilities
Leasehold deposits
received - 9,472 - 9,472
- 10,064,362 - 10,064,362
The management of the Group anticipates that, except for the items described in the table
above, the book amount of the financial assets and liabilities measured at amortized cost in
the consolidated financial statements is similar to the fair value.
The table below provides the Group’s financial assets and financial liabilities that are carried
at cost as the fair values of the financial instruments are not readily determinable in the
consolidated interim statements of financial position as at March 31, 2017 and December 31,
2016.
(in millions of Korean won) Description March 31, 2017 December 31, 2016
Securities
Available-for-sale financial
assets 1
Unlisted equity
securities
1,767 1,767
1 Available-for-sale financial assets are recorded at cost as they do not have quoted prices in
an active market and the fair values are not reliably measured.
There are no significant changes in business or economic environment that affect fair values
of financial assets and liabilities held by the Group as at March 31, 2017.
28. Earnings per Share
Earnings per share for the three-month periods ended March 31, 2017 and 2016, are as
follows:
(in Korean won) 2017 2016
Profit for the period (A) 53,194,278,956 53,583,699,462
Weighted average number of ordinary shares
outstanding (B) 160,465,286 160,465,286
Basic earnings per share (A/B) 332 334

41
There are no discontinued operations for the three-month periods ended March 31, 2017
and 2016, and as such, earnings per share are the same as earnings per share from
continuing operations.
Diluted earnings per share
As the Group has not issued any diluted shares, diluted earnings per share is the same as
basic earnings per share for the three-month periods ended March 31, 2017 and 2016.
29. Financial Risk Management
The Group is exposed to credit, liquidity and market risks (currency risk and interest rate
risk). In order to manage these factors, the Group operates risk management policies and
programs that monitor closely and respond to each of the risk factors. The Group uses
derivatives to manage market risks.
There was no significant change in the Group’s risk management division and policies after
December 31, 2016.
30. Capital Management
The Parent Company (specialized credit finance company) must maintain adjusted capital
adequacy ratio in accordance with Specialized Credit Financial Business Law and
subregulations, and the ratio for the credit card company must be more than 8 %. This ratio
is calculated by dividing adjusted capital with adjusted total assets and all factors are based
on separate financial statements. The Parent Company maintains an adjusted capital
adequacy ratio of more than 8%.
Details of adjusted capital adequacy ratio as at March 31, 2017 and December 31, 2016, are
as follows:
Adjusted total assets (A) 13,003,131 13,392,687
Adjusted total capital (B) 2,336,004 2,269,026
Adjusted capital adequacy ratio (B/A) 17.96% 16.94%

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