Fy 2017 4_q_hci_eng

Hyundai Commercial, Inc.
Financial Statements
December 31, 2017

Index
December 31, 2017 and 2016
Page(s)
Independent Auditor’s Report ...................................................................................... 1 - 2
Financial Statements
Statements of Financial Position ..................................................................................... 3 - 4
Statements of Comprehensive Income ............................................................................. 5 - 6
Statements of Changes in Equity...................................................................................... 7
Statements of Cash Flows ................................................................................................ 8
Notes to the Financial Statements ................................................................................... 9 - 93
Report on Independent Accountant’s Review of Internal Accounting Control System 94
Report on the Operations of the Internal Accounting Control System ...................... 95

Independent Auditor’s Report
(English Translation of a Report Originally Issued in Korean)
To the Board of Directors and Shareholders of
We have audited the accompanying financial statements of Hyundai Commercial, Inc. (the Company),
which comprise the statement of financial position as at December 31, 2017, and the statement of
comprehensive income, statement of changes in equity and statement of cash flows for the year then ended,
and notes to the financial statements, including a summary of significant accounting policies and other
explanatory information.
Management’s Responsibilities for the Financial Statements
Management is responsible for the preparation and fair presentation of the financial statements in
accordance with International Financial Reporting Standards as adopted by the Republic of Korea (Korean
IFRS), and for such internal control as management determines is necessary to enable the preparation of
financial statements that are free from material misstatement, whether due to fraud or error.
Auditor’s Responsibilities
Our responsibility is to express an opinion on the financial statements based on our audit. We conducted
our audit in accordance with Korean Standards on Auditing. Those standards require that we comply with
ethical requirements, and plan and perform the audit to obtain reasonable assurance about whether the
financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the
financial statements. The procedures selected depend on the auditor's judgment, including the assessment
of the risks of material misstatement of the financial statements, whether due to fraud or error. In making
those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair
presentation of the financial statements in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal
control. An audit also includes evaluating the appropriateness of accounting policies used and the
reasonableness of significant accounting estimates made by management, as well as evaluating the overall
presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
our audit opinion.

2
Opinion
In our opinion, the accompanying financial statements present fairly, in all material respects, the financial
position of Hyundai Commercial, Inc. as at December 31, 2017, and its financial performance and its cash
flows for the year then ended in accordance with Korean IFRS.
Other Matters
The financial statements of the Company for the year ended December 31, 2016, were audited by Samjong
KPMG LLC who expressed an unqualified opinion on those statements on March 13, 2017.
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.
Seoul, Korea
March 21, 2018
This report is effective as of March 21, 2018, 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 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.

Statements of Financial Position
(In Korean won) Notes
Assets
Cash and due from bank 12,36
Cash and cash equivalents 32 ￦ 176,391,584,759 ￦ 212,757,092,595
Due from banks 6 9,000,000 9,000,000
176,400,584,759 212,766,092,595
Securities
Trading securities 7,12 504,517,213,971 277,319,562,599
Available-for-sale securities 8,12 206,452,950,042 116,396,269,904
Investments in associates 9 813,856,094,165 263,560,771,974
1,524,826,258,178 657,276,604,477
Loans receivable 10,11,12,13,36
Factoring 148,233,672,994 100,267,374,974
Provision for impairment (135,164,390) (28,545,732)
Loans 4,659,125,985,387 4,073,748,528,456
Provision for impairment (35,225,006,946) (26,670,454,179)
4,771,999,487,045 4,147,316,903,519
Installment financial assets 10,11,12,13,36
Auto installment receivables 446,349,668,385 321,847,297,807
Durable goods installment receivables 23,762,235,394 14,515,614,420
Provision for impairment (2,304,786) (3,626,887)
467,888,347,331 334,286,855,033
Lease receivables 10,11,12,14,36
Financial lease receivables 709,582,340,446 584,332,948,478
Advances for acquisition of assets to be leased 2,093,563,639 -
698,944,822,134 575,600,700,047
Lease assests 15
Operating lease 8,929,534,449 8,066,885,808
Accumulated depreciation (2,318,175,483) (1,066,098,384)
6,611,358,966 7,000,787,424
Property and equipment 16
Fixtures and furniture 7,561,971,108 9,291,433,772
Others 370,999,664 370,999,664
7,932,970,772 9,662,433,436
Other assets
Intangible assets 17 23,125,843,752 25,506,832,394
Other receivables 12,36 4,733,050,593 7,725,663,889
Provision for impairment 11 (1,250,975) (1,156,154)
Accrued income 12,36 17,744,751,829 16,606,124,938
Provision for impairment 11 (161,057,854) (129,246,586)
Advance payments 1,270,872,611 2,471,505,396
Prepaid expenses 36,828,416,062 2,588,879,347
Suspense payments 48,387,672 34,854,880
Provision for impairment 11 (265,097) (204,001)
Leasehold deposits provided 12,34,36 2,290,561,262 2,442,380,612
Derivative assets 12,23,36 8,284,613,250 16,224,060,287
94,163,923,105 73,469,695,002
Total assets ￦ 7,748,767,752,290 ￦ 6,017,380,071,533
2017 2016
3

Statements of Financial Position
(In Korean won) Notes 2017 2016
Liabilities
Borrowings 12,36
Borrowings 18 ￦ 926,955,772,768 ￦ 414,053,634,498
Debentures 19 5,715,015,052,145 4,496,824,323,851
Securitized debts 13,20,36 - 300,193,353,516
6,641,970,824,913 5,211,071,311,865
Other liabilities
Other payables 12 27,713,291,288 26,945,888,472
Accrued expenses 12 36,010,457,916 32,064,250,822
Unearned revenue 6,582,628,917 4,673,705,282
Advances receipts - 2,005,827,177
Withholdings 12 1,934,174,565 4,215,449,361
Employee benefit liabilities 21 5,874,478,573 8,004,333,060
Guarantee deposits received 12 87,862,984,449 71,453,826,210
Other provisions 22 2,335,276,599 2,227,972,322
Current tax liabilities 7,847,884,579 9,321,057,413
Deferred tax liabilities 29 72,493,084,362 28,168,957,605
Derivative liabilities 12,23,36 12,305,656,886 135,433,856
Financial guarantee liabilities 36 - 603,945,206
Non-controlling interest liabilities - 19,900
260,959,918,134 189,820,666,686
Total liabilities 6,902,930,743,047 5,400,891,978,551
Equity
Share capital 1,24
Ordinary shares 100,000,000,000 100,000,000,000
Preferred shares 25,000,000,000 25,000,000,000
125,000,000,000 125,000,000,000
Capital Surplus 24
Share premium 74,608,059,537 74,608,059,537
Hybrid bonds 24 299,152,940,000 199,427,460,000
Capital adjustments
Other capital adjustments (2,397,101,756) (2,397,101,756)
Accumulated other comprehensive income 31
Gain or loss on valuation of derivatives 23 1,323,504,188 (331,627,359)
Changes in the fair value of available-for-sale securities (1,056,446,076) 1,029,377,016
Share of other comprehensive income of associates 163,451,235 (6,452,239,116)
Remeasurement of defined benefit plans (2,908,577,264) (4,087,083,392)
(2,478,067,917) (9,841,572,851)
Retained earnings 25
Legal reserve 14,240,000,000 13,770,000,000
Discretionary reserve 22,111,639,125 19,002,652,509
315,599,540,254 196,918,595,543
351,951,179,379 229,691,248,052
Total equity 845,837,009,243 616,488,092,982
Total liabilities and equity ￦ 7,748,767,752,290 ￦ 6,017,380,071,533
The above statements of financial position should be read in conjuction with the accompanying notes.
Retain earnings before appropriation
(Provision (reversal) of planned reserve for credit losses
December 31, 2017 : ￦6,676,385,759
December 31, 2016 : ￦3,108,986,616)
4

Statements of Comprehensive Income
Years Ended December 31, 2017 and 2016
(in Korean won) Notes
Operating income
Income on loans receivable 26,27 ￦ 284,706,741,196 ￦ 282,299,627,425
Income on installment financial receivables 26,27 22,096,379,298 21,609,123,906
Income on leases 26,27 48,932,467,310 39,725,844,980
Other Interest income 26 14,841,153,872 9,122,474,520
Gain on disposal of loans receivable 34 2,937,027,415 3,604,534,992
Gain on valuation and disposal of trading securities 7 720,235,805 234,819,115
Dividend income 68,100,000 100,000,000
Gain on foreign currency transactions 28,558,716,938 -
Gain on valuation of derivatives - 13,574,000,000
Gain on disposal of available-for-sale securities 977 833,207,503
Other operating income 26,509,434,555 15,273,714,168
429,370,257,366 386,377,346,609
Operating expenses
Interest expense 26 144,823,659,494 129,420,203,619
Lease expense 2,424,577,823 1,848,875,880
Impairment loss 11 45,238,520,101 31,554,110,599
Loss on disposal of loans receivable 34 2,972,200,674 3,040,754,090
Loss on valuation and disposal of trading securities 7 394,488 63,053,968
Loss on foreign currency transactions - 13,574,000,000
Selling and administrative expenses 28 105,499,566,705 104,871,853,627
Loss on valuation of derivatives 7,323,000,000 -
Loss on transaction of derivatives 22,845,000,000 -
Loss on disposal of available-for-sale securities 75,982 140,000
Other operating expenses 15,476,218,396 14,703,348,562
346,603,213,663 299,076,340,345
Operating profit 82,767,043,703 87,301,006,264
Non-operating income
Share of profit of associates 9 265,641,148,433 10,523,934,680
Gain on disposal of property and equipment 3,864,168 31,075,854
Gain on restoration work 5,385,696 144,373,130
Gain related to derivatives 2,096,713,467 2,672,468,595
Miscellaneous revenue 1,276,600,047 822,947,876
269,023,711,811 14,194,800,135
2017 2016
5

Statements of Comprehensive Income
(in Korean won)
Notes
Non-operating expenses
Share of loss of associates 9 12,768,602,205 6,172,748,746
Loss on disposal of property and equipment 6,399,813 22,740,844
Impairment loss on other investment - 327,100,000
Loss on restoration work 43,290,983 84,454,429
Donations 73,691,091 1,999,182
Loss on redemption of debentures 1,442,019,055 -
Impairment of other non-financial assets 25,230,165 -
Loss related to derivatives 1,781,934,387 1,781,339,052
Miscellaneous losses 1,273,889,549 963,057,093
17,415,057,248 9,353,439,346
Profit before income tax 334,375,698,266 92,142,367,053
Income tax expense 29 61,962,990,372 20,808,328,566
25
￦ 272,412,707,894 ￦ 71,334,038,487
Other comprehensive income, net of tax 25
Items that may be subsequently reclassified to profit or loss 6,184,998,806 (10,000,616,231)
Items that will not be reclassified to profit or loss 1,178,506,128 328,073,166
7,363,504,934 (9,672,543,065)
Total comprehensive income for the year ￦ 279,776,212,828 ￦ 61,661,495,422
Earnings per share 30
Basic earnings per share ￦ 12,982 ￦ 2,797
Diluted earnings per share 12,982 2,425
The above statements of comprehensive income should be read in conjuction with the accompanying notes.
2017 2016
Profit for the year
(Adjusted profit after provision of reserve for credit losses:
December 31, 2017: ￦ 265,736,322,135
December 31, 2016: ￦ 68,225,051,871)
6

Statements of Changes in Equity
(in Korean won)
Balance at January 1, 2016 ￦ 125,000,000,000 ￦ 74,608,059,537 ￦ 199,427,460,000 ￦ (2,397,101,756) ￦ (169,029,786) ￦ 191,655,201,375 ￦ 588,124,589,370
Total comprehensive income
Profit for the year - - - - - 71,334,038,487 71,334,038,487
Other comprehensive income
Loss on valuation of deriavatives - - - - 984,826,900 - 984,826,900
Changes in the fair value of available-for-sale securities - - - - (706,657,589) - (706,657,589)
Share of other comprehensive income of associates - - - - (10,278,785,542) - (10,278,785,542)
Remeasurement of defined benefit plans - - - - 328,073,166 - 328,073,166
- - - - (9,672,543,065) 71,334,038,487 61,661,495,422
Transactions with owners
Annual dividend - - - - - (22,600,000,000) (22,600,000,000)
Interest paid to hybrid bonds - - - - - (10,697,991,810) (10,697,991,810)
- - - - - (33,297,991,810) (33,297,991,810)
Balance at December 31, 2016 ￦ 125,000,000,000 ￦ 74,608,059,537 ￦ 199,427,460,000 ￦ (2,397,101,756) ￦ (9,841,572,851) ￦ 229,691,248,052 ￦ 616,488,092,982
Balance at January 1, 2017 ￦ 125,000,000,000 ￦ 74,608,059,537 ￦ 199,427,460,000 ￦ (2,397,101,756) ￦ (9,841,572,851) ￦ 229,691,248,052 ￦ 616,488,092,982
Total comprehensive income
Profit for the year - - - - - 272,412,707,894 272,412,707,894
Other comprehensive income
Gain on valuation of deriavatives - - - - 1,655,131,547 - 1,655,131,547
Changes in the fair value of available-for-sale securities - - - - (2,085,823,092) - (2,085,823,092)
Share of other comprehensive income of associates - - - - 6,615,690,351 - 6,615,690,351
Remeasurement of defined benefit plans - - - - 1,178,506,128 - 1,178,506,128
- - - - 7,363,504,934 272,412,707,894 279,776,212,828
Transactions with owners
Annual dividend - - - - - (4,700,000,000) (4,700,000,000)
Interim dividend - - - - - (30,000,000,000) (30,000,000,000)
Acquisition of treasury shares - - - (102,679,772,330) - - (102,679,772,330)
Retirement of treasury shares - - - 102,679,772,330 - (102,679,772,330) -
Issuance of hybrid bonds - - 99,725,480,000 - - - 99,725,480,000
Interest paid to hybrid bonds - - - - - (12,773,004,237) (12,773,004,237)
Balance at December 31, 2017 ￦ 125,000,000,000 ￦ 74,608,059,537 ￦ 299,152,940,000 ￦ (2,397,101,756) ￦ (2,478,067,917) ￦ 351,951,179,379 ￦ 845,837,009,243
The above statements of changes in equity should be read in conjuction with the accompanying notes.
Capital Surplus
Share
capital
Total
equity
Retained
earnings
Accumulated
other
comprehensive
income
Capital
adjustments
Hybrid
bonds
7

Statements of Cash Flows
(In Korean won)
Notes
Cash flows from operating activities
Cash used in operations 26 ￦ (899,566,225,532) ￦ (374,704,097,805)
Interest received 14,762,670,372 8,974,570,509
Interest paid (142,119,466,527) (132,427,549,855)
Dividends received 68,100,000 100,000,000
Income taxes paid (20,539,376,592) (20,696,719,609)
Net cash outflow from operating activities (1,047,394,298,279) (518,753,796,760)
Cash flows from investing activities
Proceeds from disposal of available-for-sale securities 20,592,976,189 15,964,716,786
Payments for available-for-sale securities (113,510,605,000) (83,505,027,915)
Payments for investments in associates (298,793,573,716) -
Dividends from investments in associates 9,175,080,058 -
Proceeds from disposal of property and equipment 4,103,000 47,038,662
Payments for property and equipment (1,852,528,313) (2,052,078,052)
Proceeds from disposal of intangible assets 1,500,000,000 -
Payments for intangible assets (2,442,387,976) (878,562,686)
Decrease in guarantee deposits provided 6,698,242,534 394,127,896
Increase in guarantee deposits provided (6,575,574,208) -
Net cash outflow from investing activities (385,204,267,432) (70,029,785,309)
Cash flows from financing activities
Proceeds from borrowings 1,571,739,510,000 417,731,491,990
Repayments of borrowings (768,712,371,730) (520,730,407,795)
Issuance of debentures 2,969,422,230,987 2,356,753,747,955
Repayments of debentures (2,034,537,019,055) (1,898,776,000,000)
Issuance of securitized debts - 300,193,353,516
Repayments of securitized debts (290,125,000,000) -
Dividends paid (34,700,000,000) (22,600,000,000)
Acquisition of treasury shares (102,679,772,330) -
Issuance of hybrid bonds 99,725,480,000 -
Interest paid to hybrid bonds (12,289,999,997) (10,697,991,810)
Reclassification of non-controlling interest liabilities - 19,900
Net cash flow of hedging derivatives (1,610,000,000) -
Net cash inflow from financing activities 1,396,233,057,875 621,874,213,756
Net cash increase (decrease) in cash and cash equivalents (36,365,507,836) 33,090,631,687
Cash and cash equivalents at the beginning of the year 32 212,757,092,595 179,666,460,908
Cash and cash equivalents at the end of the year 32 ￦ 176,391,584,759 ￦ 212,757,092,595
2017 2016
The above statements of cash flows should be read in conjuction with the accompanying notes.
8

Notes to the Financial Statements
9
1. The Company
Hyundai Commercial, Inc. (the Company) was established on March 27, 2007, by taking over all
the assets, liabilities, rights, and obligations related with the loans of the industrial product division
of Hyundai Capital Services, Inc. and its installment financing and lease financing division. The
Company is engaged in installment financing and leasing of facilities. The Company’s
headquarters is located at 3, Gukhoe-daero 66-gil, Yeongdeungpo-gu, Seoul, Korea. Details of
shareholders of the Company as at December 31, 2017, are as follows:
Number of shares Percentage of ownership (%)
Hyundai Motor Company 10,000,000 50.00
Myung-yi Chung 6,667,000 33.33
Tae-young Chung 3,333,000 16.67
20,000,000 100.00
Subsidiaries excluded from the consolidation during the year ended December 31, 2017:
Subsidiary Reason
Commercial Auto fifth SPC Liquidation
During the year ended December 31, 2017, the Company lost control over Commercial Auto fifth
SPC, a subsidiary. As a result, the Company has been exempted from preparing consolidated
financial statements, and the 2016 financial statements, presented herein for comparative
purposes, are the consolidated financial statements.
2. Basis of Preparation
(a) Application of accounting standard
The financial statements of the Company have been prepared in accordance with Korean IFRS
as prescribed in the article 13 clause 1 item 1 of the Act on External Audits of Corporations in the
Republic of Korea. The Company accounted for investments in associates, parent company or
joint ventures using the equity method accounting in accordance with Korean IFRS 1028.
(b) Basis of measurement
The financial statements have been prepared on the historical cost basis except for the following
material items in the statement of financial position:
- Financial instruments at fair value through profit or loss are measured at fair value
- Available-for-sale financial instruments measured at fair value
- Derivative financial instruments measured at fair value

10
- The net defined benefit liabilities is recognized as the present value of the defined benefit
obligation less the fair value of the plan assets.
(c) Use of estimates and judgements
The preparation of the financial statements in conformity with Korean IFRS requires
management to make judgments, estimates and assumptions that affect the application of
accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual
results may differ from these estimates.
Estimates and underlying assumptions are evaluated on an ongoing basis. Revisions to
accounting estimates are recognized in the period in which the estimates are revised and in any
future years affected.
Information about critical judgments in applying accounting policies that have the most significant
effect on the amounts recognized in the financial statements is included in the following notes:
- Note 2(d): Measurement of fair values
- Note 4(e): Impairment of financial assets
Information about assumptions and estimation uncertainties that have a significant risk of
resulting in a material adjustment within the next financial year are included in the following
notes:
- Note 21: Employee Benefit Liabilities – Actuarial assumptions
- Note 33: Commitments and Contingencies – Assumption of the price and the possibilities of
asset outflow
(d) Measurement of fair values
A number of the Company’s accounting policies and disclosures require the measurement of fair
values, for both financial and non-financial assets and liabilities. The Company has an
established control framework with respect to the measurement of fair values. This includes a
valuation team that has overall responsibility for overseeing all significant fair value
measurements, including Level 3 fair values, and reports directly to the finance executive.
The Company regularly reviews significant unobservable inputs and valuation adjustments. If
third party information, such as broker quotes or pricing services, is used to measure fair values,
then the Company assesses the evidence obtained from the third parties to support the
conclusion that such valuations meet the requirements of Korean IFRS, including the level in the
fair value hierarchy.
When measuring the fair value of an asset or a liability, the Company uses market observable
data as far as possible. Fair values are categorized into different levels in a fair value hierarchy
based on the inputs used in the valuation techniques as follows.
- Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities.
- Level 2: inputs other than quoted prices included in Level 1 that are observable for the asset
or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).
- Level 3: inputs for the asset or liability that are not based on observable market data
(unobservable inputs).

11
If the inputs used to measure the fair value of an asset or a liability might be categorized in
different levels of the fair value hierarchy, then the fair value measurement is categorized in its
entirety in the same level of the fair value hierarchy as the lowest level input that is significant to
the entire measurement. And, the Company recognizes the movements within levels of fair value
hierarchy at the end of the reporting period in which changes occur.
Detailed information about the assumptions used to measure fair values are included in Note 12.
(e) Approval of Issuance of the Financial Statements
The financial statements 2017 were approved for issue by the Board of Directors on January 31,
2018 and will obtain final approval during the shareholders' meeting on March 28, 2018.
3. Changes in Accounting Policies
(a) New and amended standards adopted by the Company
The Company 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 material impact on the financial statements.
- Amendments to Korean IFRS 1007 Statement of Cash Flows
Amendments to Korean IFRS 1007 Statement of Cash flows require to provide disclosures that
enable users of financial statements to evaluate changes in liabilities arising from financing
activities, including both changes arising from cash flows and non-cash flows.
- Amendments to Korean IFRS 1012 Income Tax
Amendments to Korean IFRS 1012 clarify how to account for deferred tax assets related to debt
instruments measured at fair value. Korean IFRS 1012 provides requirements on the recognition
and measurement of current or deferred tax liabilities or assets. The amendments issued clarify
the requirements on recognition of deferred tax assets for unrealized losses, to address diversity
in practice.
- Amendments to Korean IFRS 1112 Disclosures of Interests in Other Entities
Amendments to Korean IFRS 1112 clarify when an entity’s interest in a subsidiary, a joint venture
or an associate is classified as held for sales in accordance with Korean IFRS 1105, the entity is
required to disclose other information except for summarized financial information in accordance
with Korean IFRS 1112.
(b) New and amended standards not yet adopted by the Company.

12
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 Company are set out below.
- Amendments to Korean IFRS 1028 Investments in Associates and Joint Ventures
When an investment in an associate or a joint venture is held by, or its 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 will be effective for annual periods
beginning on or after January 1, 2018, with early adoption permitted. The Company does not
expect the amendments to have a significant impact on the financial statements because the
Company is not a venture capital organization.
- Amendment to Korean IFRS 1040 Transfers of Investment Property
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 will be
effective for annual periods beginning on or after January 1, 2018, with early adoption permitted.
The Company does not expect the amendment to 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
amendments will be effective for annual periods beginning on or after January 1, 2018, with early
adoption permitted. The Company does not expect the amendments to have a significant impact
on the financial statements.
- Enactments of Interpretation 2122 Foreign Currency Transaction and Advance Consideration
According to the enactments, the date of the transaction for the purpose of determining the
exchange rate to use on initial recognition of the related asset, expense or income (or part of it) is
the date on which an entity initially recognizes the non-monetary asset or non-monetary liability
arising from the payment or receipt of advance consideration. If there are multiple payments or
receipts in advance, the entity shall determine a date of the transaction for each payment or
receipt of advance consideration. The enactments will be effective for annual periods beginning
on or after January 1, 2018, with early adoption permitted. The Company does not expect the
enactments to have a significant impact on the financial statements.

13
- Enactment of Korean IFRS 1116 Leases
Korean IFRS 1116 Leases issued on May 22, 2017 is effective for annual periods beginning on or
after January 1, 2019, with early adoption permitted. This standard will replace Korean IFRS 1017
Leases, Interpretation 2104 Determining whether an Arrangement contains a Lease,
Interpretation 2015 Operating Leases-Incentives, and Interpretation 2027 Evaluating the
Substance of Transactions Involving the Legal Form of a Lease.
At inception of a contract, the entity shall assess whether the contract is, or contains, a lease.
Also, at the date of initial application, the entity shall assess whether the contract is, or contains, a
lease in accordance with the standard. However, the entity will not need to reassess all contracts
with applying the practical expedient because the entity elected to apply the practical expedient
only to contracts entered before the date of initial application.
For a contract that is, or contains, a lease, the entity shall account for each lease component
within the contract as a lease separately from non-lease components of the contract. A lessee is
required to recognize a right-of-use asset representing its right to use the underlying leased asset
and a lease liability representing its obligation to make lease payments. The lessee may elect not
to apply the requirements to short-term lease (a lease term of 12 months or less at the
commencement date) and low value assets (e.g. underlying assets below $ 5,000). In addition, as
a practical expedient, the lessee may elect, by class of underlying asset, not to separate non-
lease components from lease components, and instead account for each lease component and
any associated non-lease components as a single lease component.
(a) Lessee accounting
Method of applying IFRS 1116 ‘Leases’
A lessee shall apply this standard to its leases either:
· retrospectively to each prior reporting period presented applying Korean IFRS 1008
Accounting Policies, Changes in Accounting Estimates and Errors (Full retrospective
application); or
· retrospectively with the cumulative effect of initially applying the standard recognized at the
date of initial application.
The Company has not yet elected the application method.
Financial effects of IFRS 1116 ‘Leases’
The Company performed an impact assessment to identify potential financial effects of applying
Korean IFRS 1116. The assessment was performed based on available information as at
December 31, 2017 to identify effects on 2017 financial statements. The Company is analyzing
the effects on the financial statements; however, it is difficult to provide reasonable estimates of
financial effects until the analyses is complete.

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(b) Lessor accounting
Method of applying and financial effects of IFRS 1116 ‘Leases’
The Company expects the effect on the financial statements applying the new standard will not be
significant as accounting for the Company, as a lessor, will not significantly change.
- Enactment of Korean IFRS 1109 Financial Instruments
The new standard for financial instruments issued on September 25, 2015 is 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 Company
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 three main areas including: (a) classification
and measurement of financial assets on the basis of the entity’s business model for managing
financial assets and the contractual cash flow characteristics of the financial assets, (b) a new
impairment model of financial instruments based on the expected credit losses, and (c) hedge
accounting including expansion of the range of eligible hedging instruments and hedged items
that qualify for hedge accounting or change of a method of hedge effectiveness assessment.
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 Company’s financial statements due to the
application of the standard is dependent on judgements made in applying the standard, financial
instruments held by the Company and macroeconomic variables.
The Company performed an impact assessment to identify potential financial effects of applying
Korean IFRS 1109. The assessment was performed based on available information as at
December 31, 2017, and the results of the assessment are explained as below. The Company
plans to perform more detailed analyses on the financial effects based on additional information in
the future; therefore, the results of the assessment may change due to additional information that
the Company may obtain after the assessment.
(i) Classification and Measurement of Financial Assets
When implementing Korean IFRS 1109, the classification of financial assets will be driven by the
Company’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

15
amortized cost, at fair value through other comprehensive income and at fair value through profit
or loss. If a hybrid contract contains a host that is a financial asset, the classification of the hybrid
contract shall be determined for the entire contract without separating the embedded derivative.
Business model for the
contractual cash flows
characteristics
Solely represent payments of
principal and interest
All other
Hold the financial asset for
the collection of the
contractual cash flows
Measured at amortized cost1
Recognized at fair value through
profit or loss2Hold the financial asset for
the collection of the
contractual cash flows and
sale
other comprehensive income 1
Hold for sale
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 December 31, 2017, the Company owns loans and receivables of 5,989,147 million,
financial assets available-for-sales of 206,453 million and financial assets at fair value thorough
profit or loss of 504,517 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 December 31, 2017, the Company measured loans and receivables
of 5,989,147 million at amortized costs.
Based on results from the impact assessment of Korean IFRS 1109, the application of the new
standard as at December 31, 2017 does not have a material impact on the Company’s financial
statements. This is because the Company holds the majority of financial assets measured at
amortized cost that meets the both criteria: a) the contractual terms of the financial assets that the
Company holds give rise to cash flows that are solely payments of principal and interest on the
principal amount outstanding on a specified date, and b) the Company holds the financial assets
in order to collect contractual cash flow.

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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 December
31, 2017, the Company holds debt instruments of 113,373 million classified as financial assets
available-for-sale in total and these debt instruments contains 38,731 million of hybrid financial
instruments.
Based on results from the impact assessment of Korean IFRS 1109, if Korean IFRS 1109 is
applied for the above debt instruments classified as financial assets available-for-sale, the
Company expects the majority of the financial assets to be measured at fair value through other
comprehensive income.
According to Korean IFRS 1109, equity instruments that are not held for trading, the Company
can make an irrevocable election at initial recognition to classify the instruments as assets
measured at fair value through other comprehensive income, which all subsequent changes in fair
value being recognized in other comprehensive income and not recycled to profit or loss. As at
December 31, 2017, the Company holds equity instruments of 93,080 million classified as
financial assets available-for-sale and there is not recycled unrealized gain or loss arose from the
equity instruments to profit or loss.
Based on results from the impact assessment of Korean IFRS 1109, the Company plans to
designate equity instruments, which are classified in financial assets available-for-sale, as
instruments measured at fair value through other comprehensive income for long-term investment
purpose. Therefore, the Company expects the application of Korean IFRS 1109 on these financial
assets will not have a material impact on the financial statements.
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 December 31, 2017, the Company holds debt
instruments classified as financial assets at fair value through profit or loss that amount to
504,517 million.
Based on results from the impact assessment, if the Company applies Korean IFRS 1109 to the
financial assets measured at fair value through profit or loss as at December 31, 2017, the
application will not have a material impact on the financial statements because the majority of the
financial assets will still be classified as at fair value through profit or loss.
(ii) Classification and Measurement of Financial Liabilities
Korean IFRS 1109 requires the amount of the change in the liability’s fair value attributable to
changes in the credit risk to be recognized in other comprehensive income, unless this treatment
of the credit risk component creates or enlarges a measurement mismatch. Amounts presented in

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other comprehensive income are not subsequently transferred to profit or loss.
Under Korean IFRS 1039, all financial liabilities designated at fair value through profit or loss
recognized their fair value movements in profit or loss. However, under Korean IFRS 1109,
certain fair value movements will be recognized in other comprehensive income and as a result
profit or loss from fair value movements may decrease.
Based on results from the impact assessment, the financial liabilities in applying Korean IFRS
1109 may not be expected to have a material impact on the financial statements because the
majority of financial liabilities designated as at fair value through profit or loss as at December 31,
2017 have short maturities and insignificant fluctuations in their credit risks.
(iii) Impairment: Financial Assets and Contract Assets
The new impairment model requires the recognition of impairment provisions based on expected
credit losses (ECL) rather than only incurred credit losses as is the case under Korean IFRS 1039.
It applies to financial assets classified at amortized cost, debt instruments measured at fair value
through other comprehensive income, contract assets, lease receivables, loan commitments and
certain financial guarantee 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 Company 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 A loss allowance for lifetime expected credit losses is required for a financial instrument if the
credit risk on that financial instrument has increased significantly since initial recognition. It is also
required for contract assets or trade receivables that are not, according to Korean IFRS 1115
Revenue from Contracts with Customers, considered to contain a significant financing component.
Additionally, the Company can elect an accounting policy of recognizing lifetime expected credit
losses for all contract assets and/or all trade receivables, including those that contain a significant
financing component.
2 If the financial instrument has low credit risk at the end of the reporting period, the Company

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may assume that the credit risk has not increased significantly since initial recognition.
Under Korean IFRS 1109, the asset that is credit-impaired at initial recognition would recognize all
changes in lifetime expected credit losses since the initial recognition as a loss allowance with
any changes recognized in profit or loss.
As at December 31, 2017, the Company owns debt investment carried at amortized cost of
5,989,147 million (loans and receivables of 5,989,147 million), debt investments carried at
fair value through other comprehensive income, which classified as financial assets available-for-
sales, of 113,373 million. And, the Company recognized loss allowance of 50,315 million for
these assets.
For trade receivables, contract assets and lease receivables that contain a significant financing
component, the Company measures the loss allowance at an amount equal to lifetime expected
credit losses at initial recognition. The Company performed an impact assessment using the
simplified approach with an assumption that the credit risk has not increased significantly since
initial recognition because the financial instrument has a low credit risk at the reporting period. As
a result of the impact assessment, the Company expected the loss allowance of 50,315 million
as at January 1, 2018, to be increased by 15~25%.
(iv) 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 Company’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.
As at December 31, 2017, the Company applies the hedge accounting to its assets, liabilities, firm
commitments and forecast transactions that amount to 9,327 million. With applying the hedge
accounting, the Company recognized the fair value changes of fair value hedging instruments for
30,168 million in profit or loss, and reclassified the fair value changes of cash flow hedging
instruments, which were previously recognized in other comprehensive income, to profit or loss.
As at December 31, 2017, the changes in fair values of cash flow hedging instruments recognized
in accumulated other comprehensive income amount to 2,184 million.

19
- Enactment of Korean IFRS 1115 Revenue from Contracts with Customers
Korean IFRS 1115 Revenue from Contracts with Customers issued on November 6, 2015 will be
effective for annual reporting periods beginning on or after January 1, 2018 with early adoption
permitted. 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 Company 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.
Korean IFRS 1018 and other current revenue standard identify revenue as income that arises in
the course of ordinary activities of an entity and provides guidance on a variety of different types
of revenue, such as, sale of goods, rendering of services, interest, dividends, royalties and
construction contracts. However, 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 customers can be recognized:
 Identify contracts with customers
 Identify the separate performance obligation
 Determine the transaction price of the contract
 Allocate the transaction price to each of the separate performance obligations, and
 Recognize the revenue as each performance obligation is satisfied.
The Company is analyzing the effects of applying Korean IFRS 1115 on the separate financial
statements; however, it is difficult to provide reasonable estimates of financial effects until the
analysis is complete.
4. Significant Accounting Policies
The significant accounting policies in accordance with Korean IFRS are set out below. Except for
the amendments discussed in Note 3, accounting policies used to prepare the financial
statements as at and for the year ended December 31, 2017, are consistent with the accounting
policies used to prepare the financial statements as of and for the year ended December 31, 2016.

20
(a) Investment in Associates and Joint Ventures
The Company's investment in investees account for using equity method is comprised of
investments in associates. Associates are entities which the Company has significant influence on
the financial and operating policy, but does not joint control or dominate. The Company initially
recognizes the investment in associates at cost including transaction costs, and accounts for
using equity method after acquisition. Accordingly, the Company's share of the investee's profit or
loss and other comprehensive income is adjusted to the carrying amount, and dividend received
from investee is deducted from the carrying amount of the share.
(b) Cash and cash equivalents
Cash and cash equivalents comprise balances with less than three months’ maturity from the date
of acquisition, including cash on hand, deposits held at call with banks and other short-term highly
liquid investments with original maturities of three months or less.
(c) Non-derivative financial assets
Non-derivative financial assets are classified into the following measurement categories: financial
assets at fair value through profit or loss, held-to-maturity investments, loans and receivables and
available-for-sale financial assets, all of which are initially recognized on the date at which the
Company becomes a party to the contractual provisions of the instrument.
A financial asset is measured initially at its fair value plus, for an item not at fair value through
profit or loss, transaction costs that are directly attributable to its acquisition.
(i) Financial assets at fair value through profit or loss
Financial assets are classified as at fair value through profit or loss when the financial asset is
either held for trading or is designated at fair value through profit or loss. Financial assets at fair
value through profit or loss are measured at fair value upon initial recognition and changes therein
are recognized in profit or loss. Upon initial recognition, attributable transaction costs are
recognized in profit or loss as incurred.
(ii) Held-to-maturity investments
If the non-derivative assets have a fixed maturity with fixed or determinable payments, and the
Company has the positive intent and ability to hold them until maturity, then such financial assets
are classified as held-to-maturity. Subsequent to initial recognition, held-to-maturity financial
assets are measured at amortized cost using the effective interest rate method.
(iii) Loans and receivables
Loans and receivables are financial assets with fixed or determinable payments that are not
quoted in an active market. Subsequent to initial recognition, loans and receivables are

21
measured at amortized cost using the effective interest method.
(iv) Available-for-sale financial assets
Available-for-sale financial assets are those non-derivative financial assets that are designated as
available-for-sale or are not classified as financial assets at fair value through profit or loss, held-
to-maturity investments or loans and receivables. Subsequent to initial recognition, they are
measured at fair value, with changes in fair value, net of any tax effect, recorded in other
comprehensive income in equity. Investments in equity instruments that do not have a quoted
market price in an active market and whose fair value cannot be reliably measured and
derivatives those are linked to and must be settled by delivery of such unquoted equity
instruments are measured at cost.
(v) Derecognition of financial assets
The Company de-recognizes a financial asset when the contractual rights to the cash flows from
the asset expire, or it transfers the rights to receive the contractual cash flows of the financial
asset in a transaction in which substantially all the risks and rewards of ownership of the financial
asset are transferred. If the Company retains substantially all the risks and rewards of ownership
of the transferred financial assets, the Company continues to recognize the transferred financial
assets and recognizes financial liabilities for the consideration received.
If a transfer does not result in derecognition because the Company has retained substantially all
the risks and rewards of ownership of the transferred asset, the Company continues to recognize
the transferred asset and recognizes a financial liability for the consideration received.
(vi) Offsetting between financial assets and financial liabilities
Financial assets and financial liabilities are offset and the net amount is presented in the
statement of financial position only when the Company currently has a legally enforceable right to
offset the recognized amounts, and there is the intention to settle on a net basis or to realize the
asset and settle the liability simultaneously.
(d) Derivative financial instruments
Derivatives are initially recognized at fair value. Subsequent to initial recognition, derivatives are
measured at fair value, and changes therein are accounted for as described below.
1) Hedge accounting
The Company holds various derivative financial instruments, such as currency swaps and interest
rate swaps to hedge its foreign currency and interest rate risk exposures.
On initial designation of the hedge, the Company formally documents the relationship between the
hedging instruments and hedged items, including the risk management objectives and strategy in

22
undertaking the hedge transaction, together with the methods that will be used to assess the
effectiveness of the hedging relationship.
(i) Fair value hedge
Changes in the fair value of a derivative hedging instrument designated as a fair value hedge are
recognized in profit or loss. The gain or loss from remeasuring the hedging instrument at fair
value for a derivative hedging instrument and the gain or loss on the hedged item attributable to
the hedged risk are recognized in profit or loss in the same line item of the statement of
comprehensive income. The Company discontinues fair value hedge accounting if the hedging
instrument expires or is sold, terminated or exercised, or if the hedge no longer meets the criteria
for hedge accounting. Any adjustment arising from gain or loss on the hedged item attributable to
the hedged risk is amortized to profit or loss from the date the hedge accounting is discontinued.
(ii) Cash flow hedge
When a derivative is designated to hedge the variability in cash flows attributable to a particular
risk associated with a recognized asset or liability or a highly probable forecasted transaction that
could affect profit or loss, the effective portion of changes in the fair value of the derivative is
recognized in other comprehensive income, net of tax, and presented in the hedging reserve in
equity. Any ineffective portion of changes in the fair value of the derivative is recognized
immediately in profit or loss.
If the hedging instrument no longer meets the criteria for hedge accounting, expires or is sold,
terminated, exercised, or the designation is revoked, then hedge accounting is discontinued
prospectively. The cumulative gain or loss on the hedging instrument that has been recognized in
other comprehensive income is reclassified to profit or loss in the periods during which the
forecasted transaction occurs. If the forecasted transaction is no longer expected to occur, then
the balance in other comprehensive income is recognized immediately in profit or loss.
2) Embedded derivative instruments
Embedded derivatives are separated from the host contract and accounted for separately only if
the following criteria has been met: (a) the economic characteristics and risks of the host contract
and the embedded derivatives are not clearly and closely related to a separate instrument with
the same terms as the embedded derivative that would meet the definition of a derivative, and (b)
the hybrid (combined) instrument is not measured at fair value through profit or loss. Changes in
the fair value of separable embedded derivatives are recognized immediately in profit or loss.
3) Other derivative instruments
Changes in the fair value of other derivative financial instrument not designated as a hedging
instrument are recognized immediately in profit or loss.
4) Day 1 gain or loss

23
When the Company measures the fair value of OTC derivatives using input variables that are not
based on observable market data, the differences between the fair value and transaction price at
initial recognition (Day 1 gain or loss) are recognized as deferred profit or loss, not recognized as
profit or loss. The differences are amortized on a straight-line basis over the trading period. If the
elements of valuation method become observable in the market, deferred balances are
recognized immediately as net profit or loss of financial assets at fair value through profit or loss
or as part of other operating income or expenses in the statement of comprehensive income.
(e) Impairment of financial assets
A financial asset not carried at fair value through profit or loss is assessed at each reporting date
to determine whether there is objective evidence that it is impaired. A financial asset is impaired if
objective evidence indicates that a loss event has occurred after the initial recognition of the asset,
and that the loss event had a negative effect on the estimated future cash flows of that asset that
can be estimated reliably. However, losses expected as a result of future events, regardless of
likelihood, are not recognized.
Objective evidence that a financial asset is impaired includes, but is not limited to the following
events:
(i) Assets carried at amortized cost
An impairment loss in respect of assets carried at amortized cost measured at amortized cost is
calculated as the difference between its carrying amount and the present value of the estimated
future cash flows discounted at the asset’s original effective interest rate and is recognized in
profit or loss. Interest on the impaired asset continues to be recognized through the unwinding of
the discount. When a subsequent event causes the amount of impairment loss to decrease, the
decrease in impairment loss is reversed through profit or loss.
(ii) Available-for-sale financial assets
When a decline in the fair value of an available-for-sale financial asset has been recognized in
other comprehensive income and there is objective evidence that the asset is impaired, the
cumulative loss that had been recognized in other comprehensive income is reclassified from
equity to profit or loss as a reclassification adjustment even though the financial asset has not
been derecognized. Impairment losses recognized in profit or loss for an investment in an equity
instrument classified as available-for-sale are not reversed through profit or loss. If, in a
subsequent period, the fair value of a debt instrument classified as available-for-sale increases
and the increase can be objectively related to an event occurring after the impairment loss was
recognized in profit or loss, the impairment loss is reversed, with the amount of the reversal
recognized in profit or loss.
(f) Revenue recognition
The Company recognizes capital lent to customers as loans receivables. Installment financial

24
capital paid by the Company to manufacturers or sellers on behalf of customers is recognized as
installment financial assets. Financial lease receivables classified as financial leases are
recognized as lease receivables.
The expected future cash flows from loans receivables, installment financial assets and lease
receivables (“financial receivables”) described above are amortized under the effective interest
method over the period of the financial receivables being used by customers.
(g) Deferral of loan origination fee and loan origination cost
Loan origination fee, which is processing fee in relation to the loan origination process such as
upfront fee, is deferred and deducted from the loan account, adjusted over the life of the loan
based on the effective interest rate method. Loan origination cost, which relates to activities
performed by the lender such as soliciting potential borrowers, is deferred and added to the loan
account, adjusted over the life of the loan based on the effective interest rate method when the
future economic benefit in connection with the cost incurred can be identified on a per loan basis.
(h) Allowance for financial receivables
(i) Calculation of allowance for doubtful accounts
The Company recognizes the impairment of receivables as an allowance for doubtful accounts. It
is based on the impairment estimates made through impairment assessment of receivables
carried at amortized cost. Allowance for doubtful account consists of impairments related to
individually material financial receivables and collective assessment for impairment incurred in
homogeneous assets.
Individually material receivables undertake the individual assessment of the difference between
the assets’ carrying amount and the present value of estimated future cash flows. Unimpaired
assets from individual assessments and individually immaterial assets undertake the collective
assessment classified by asset companies that have analogous risk attributes. The Company
uses statistical model in the collective assessment based on the expected probability of default,
periodic collect amounts, loss-given default based on the past losses, loss emergence period, and
management’s decision about the current economy and credit circumstance. The material factors
used in statistical model for the collective assessment are evaluated to compare with actual data
regularly.
The amount of impairment loss is reflected in allowance for doubtful accounts as profit or loss.
(ii) Write-off policy
The Company writes off the doubtful receivables when the assets are deemed unrecoverable.
This decision considers the information about significant changes of financial position such that a
borrower or an obligor is in default, or the amount recoverable from security is not enough. Write-
off decision of standard small loan is generally made based on the delinquent status of loan.

25
(i) Leases
(i) Classification
The Company classifies and accounts for leases as either a finance or operating lease,
depending on the terms. Leases where the lessee assumes substantially all of the risks and
rewards of ownership are classified as finance leases. All other leases are classified as operating
leases.
The lease arrangement classified as a finance lease is where: ① The lease transfers ownership
of the asset to the lessee by the end of the lease term, ② The lessee has the option to purchase
the asset at a price that is expected to be sufficiently lower than the fair value at the date the
option becomes exercisable for it to be reasonably certain, at the inception of the lease, that the
option will be exercised, ③ The lease term is for the major part of the economic life of the asset
even if the title is not transferred, ④ at the inception of the lease the present value of the
minimum lease payments amounts to at least substantially all of the fair value of the leased asset,
or ⑤ The leased assets are of such a specialized nature that only the lessee can use them
without major modifications.
Minimum lease payments include that part of the residual value that is guaranteed by the lessee,
by a party related to the lessee or by a third party unrelated to the Company that is financially
capable of discharging the obligation under the guarantee.
(ii) Finance leases
Where the Company has substantially all the risks and rewards of ownership, lease of property,
and equipment are classified as finance lease. An amount equal to the net investment in the
lease is presented as a receivable. Expenses that are incurred with regard to the lease contract
made but not executed at the date of the statement of financial position are accounted for as
prepaid leased assets and are classified as finance lease receivables at the inception of the lease.
Lease receivables include amounts such as commissions, legal fees, and internal costs that are
incremental and directly attributable to negotiation and arranging a lease. Each lease payment is
allocated between principal and finance income. Financial income on an uncollected part of net
investment shall be allocated to each period during the lease term so as to produce a constant
periodic rate of interest on the remaining balance of the liability.
(iii) Operating leases
Payments made under operating leases (net of any incentives received from the lessor) are
recognized in profit or loss on a straight-line basis over the period of the lease.
(j) Property and equipment
Property and equipment are initially measured at cost and after initial recognition, are carried at
cost less accumulated depreciation and accumulated impairment losses. The cost of property

26
and equipment includes expenditures arising directly from the construction or acquisition of the
asset, 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 and the initial estimate of
the costs of dismantling and removing the item and restoring the site on which it is located.
The cost of replacing a part of an item of property or equipment is recognized in the carrying
amount of the item if it is probable that the future economic benefits embodied within the part will
flow to the Company and its cost can be measured reliably. The carrying amount of the replaced
cost is derecognized. The cost of the day to day servicing of property and equipment are
recognized in profit or loss as incurred. Property and equipment are depreciated on a straight-line
basis over the estimated useful lives, which most closely reflect the expected pattern of
consumption of the future economic benefits embodied in the asset. The estimated useful lives
for the current and comparative years are as follows:
Description Depreciation method Useful lives
Vehicles Straight-line 4 years
Fixtures and furniture Straight-line 4 years
Works of art classified under other tangible assets are not amortized due to their indefinite useful
life in nature.
The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at the end
of each reporting period. An asset’s carrying amount is written down immediately to its
recoverable amount if the carry amount is greater than its estimated recoverable amount. Gains
and losses on disposals are determined by comparing the proceeds with the carrying amount,
and recognized within other operating income (expenses) in the statement of comprehensive
income.
(k) Intangible assets
Intangible assets are measured initially at cost and, subsequently, are carried at cost less
accumulated amortization and accumulated impairment losses.
Amortization of intangible assets is calculated on a straight-line basis over the estimated useful
lives of intangible assets from the date that they are available for use. The residual value of
intangible assets is zero.
Description Amortization method Useful lives
Development Straight-line 5 years
Software Straight-line 4 years
Other intangible assets Straight-line 5 years
However, as there are no foreseeable limits to the periods over which club memberships are
expected to be available for use, this intangible asset is determined as having indefinite useful

27
lives and not amortized. Useful lives and amortization method of tangible assets with definite
useful lives are reviewed, and adjusted if appropriate, at the end of each reporting period. The
useful life of an intangible asset that is not being amortized is reviewed each period to determine
whether events and circumstances continue to support an indefinite useful life assessment for that
asset. If they do no, the change in the useful life assessment from indefinite to finite is accounted
for as a change in an accounting estimate.
(i) Research and development
Expenditures on research activities, undertaken with the prospect of gaining new scientific or
technical knowledge and understanding, are recognized in profit or loss as incurred.
Development expenditures are capitalized only if development costs can be measured reliably,
the product or process is technically and commercially feasible, future economic benefits are
probable, and the Company intends to and has sufficient resources to complete development and
to use or sell the asset. Other development expenditures are recognized in profit or loss as
incurred.
(ii) Subsequent expenditures
Subsequent expenditures are capitalized only when they increase the future economic benefits
embodied in the specific asset to which it relates. All other expenditures, including expenditures
on internally generated goodwill and brands, are recognized in profit or loss as incurred.
(l) Impairment of non-financial assets
Assets that have an indefinite useful life are not subject to amortization and are tested annually
for impairment. Assets that are subject to amortization are reviewed for impairment whenever
events or changes in circumstances indicate that the carrying amount may not be recoverable.
An impairment loss is recognized for the amount by which the asset’s carrying amount exceeds its
recoverable amount. The recoverable amount is the higher of the asset’s fair value less costs to
sell and value in use. For the purposes of assessing impairment, assets are companied at the
lowest levels for which there are separately identifiable cash flows (cash generating units). Non-
financial assets that are subject to amortization suffered impairment are reviewed for possible
reversal of the impairment at the end of each reporting date. The carrying amount recovered due
to reversal of the impairment cannot exceed the carrying amount less accumulated depreciation
before the impairment loss was recognized.
(m) Non-derivative financial liabilities
The Company classifies non-derivative financial liabilities into financial liabilities at fair value
through profit or loss or other financial liabilities in accordance with the substance of the
contractual arrangement and the definitions of financial liabilities. The Company recognizes
financial liabilities in the statement of financial position when the Company becomes a party to the
contractual provisions of the financial liability.

28
(i) Financial liabilities at fair value through profit or loss
Financial liabilities at fair value through profit or loss include financial liabilities held for trading or
designated as such upon initial recognition. Subsequent to initial recognition, financial liabilities at
fair value through profit or loss are measured at fair value, and changes therein are recognized in
profit or loss. Upon initial recognition, transaction costs that are directly attributable to the
acquisition are recognized in profit or loss as incurred.
(ii) Other financial liabilities
Non-derivative financial liabilities other than financial liabilities at fair value through profit or loss
are classified as other financial liabilities. At the date of initial recognition, other financial liabilities
are measured at fair value minus transaction costs that are directly attributable to the acquisition.
Subsequent to initial recognition, other financial liabilities are measured at amortized cost using
the effective interest method.
The Company derecognizes a financial liability from the statement of financial position when it is
extinguished (i.e., when the obligation specified in the contract is discharged, cancelled or
expires).
(n) Net defined benefit liabilities
(i) Short-term employee benefits
Short-term employee benefits are employee benefits that are expected to be settled wholly before
12 months after the end of the period in which the employees render the related service. When
an employee has rendered service to the Company during an accounting period, the Company
recognizes the undiscounted amount of short-term employee benefits expected to be paid in
exchange for that service.
(ii) Other long-term employee benefits
Other long-term employee benefits include employee benefits that are expected to be settled
beyond 12 months after the end of the annual reporting period in which the employees render the
related service. The Company’s net obligation in respect of long-term employee benefits is the
amount of future benefit that employees have earned in return for their service in the current and
prior periods. That benefit is discounted to determine its present value. Remeasurements are
recognized in profit or loss in the period in which they arise.
(iii) Retirement benefits: defined contribution plans
When an employee has rendered service to the Company during a period, the Company
recognizes the contribution payable to a defined contribution plan in exchange for that service as
a liability (accrued expense), after deducting any contribution already paid. If the contribution
already paid exceeds the contribution due for service before the end of the reporting period, the

29
Company recognizes that excess as an asset (prepaid expense) to the extent that the
prepayment will lead to a reduction in future payments or a cash refund.
(iv) Retirement benefits: defined benefit plans
The Company’s net obligation in respect of defined benefit plans is calculated separately for each
plan by estimating the amount of future benefit that employees have earned in the current and
prior periods, discounting that amount and deducting the fair value of any plan assets.
The calculation of defined benefit obligations is performed annually by a qualified actuary using
the projected unit credit method. When the calculation results in a potential asset for the
Company, the recognized asset is limited to the present value of economic benefits available in
the form of any future refunds from the plan or reductions in future contributions to the plan. To
calculate the present value of economic benefits, consideration is given to any applicable
minimum funding requirements.
Remeasurements of the net defined benefit liability, which comprise actuarial gains and losses,
the return on plan assets (excluding interest) and the effect of the asset ceiling (if any, excluding
interest), are recognized immediately in OCI. The Company determines the net interest expense
(income) on the net defined benefit liability (asset) for the period by applying the discount rate
used to measure the defined benefit obligation at the beginning of the annual period to the then-
net defined benefit liability (asset), taking into account any changes in the net defined benefit
liability (asset) during the period as a result of contributions and benefit payments. Net interest
expense and other expenses related to defined benefit plans are recognized in profit or loss.
When the benefits of a plan are changed or when a plan is curtailed, the resulting change in
benefit that relates to past service or the gain or loss on curtailment is recognized immediately in
profit or loss. The Company recognizes gains and losses on the settlement of a defined benefit
plan when the settlement occurs.
(o) Provisions and contingent liabilities
When there is a probability that an outflow of economic benefits will occur due to a present
obligation resulting from a present legal or as a result of past events, and whose amount is
reasonably estimable, a corresponding amount of provision is recognized in the financial
statements.
Provisions are the best estimate of the expenditure required to settle the present obligation that
consider the risks and uncertainties inevitably surround many events and circumstances at the
reporting date. Where the effect of the time value of money is material, the amount of a provision
is the present value of the expenditure expected to be required to settle the obligation.
Provisions are reviewed at the end of each reporting period and adjusted to reflect the current
best estimates. If it is no longer probable that an outflow of resources embodying economic
benefits will be required to settle the obligation, the provision is reversed.

30
A possible obligation that arises from past events and whose existence will be confirmed only by
the occurrence or non-occurrence of uncertain future events, or a present obligation that arises
from past events but is not certain to occur, or cannot be reliably estimated, a disclosure regarding
the contingent liability is made in the notes to the financial statements.
(p) Foreign currency
Items included in the financial statements of each of the Company’s entities are measured using
the currency of the primary economic environment in which the entity operates (the “functional
currency”). The financial statements are presented in Korean won, which is the Company’s
functional currency.
Foreign currency transactions are translated into the functional currency using the exchange rates
prevailing at the dates of the transactions or valuation where items are remeasured. Foreign
exchange gains and losses resulting from the settlement of such transactions and from the
translation at year-end exchange rates of monetary assets and liabilities denominated in foreign
currencies are recognized in the statement of comprehensive income, except when deferred in
other comprehensive income as qualifying cash flow hedges.
(q) Equity
Ordinary shares are classified as equity. Incremental costs directly attributable to the issuance of
ordinary shares and share options are recognized as a deduction from equity, net of any tax
effects. Preference share capital is classified as equity if it is non-redeemable, or redeemable
only at the Company’s option, and any dividends are discretionary. Dividends thereon are
recognized as distributions within equity upon approval by the Company’s shareholders.
(r) Income tax
Income tax expense comprises current and deferred tax. Current tax and deferred tax are
recognized in profit or loss except to the extent that it relates to a business combination, or items
recognized directly in equity or in other comprehensive income.
(i) Current income tax
Current income tax is the expected tax payable or receivable on the taxable profit or loss for the
year, using tax rates enacted or substantively enacted at the end of the reporting period and any
adjustment to tax payable in respect of previous years. The taxable profit is different from the
accounting profit for the period since the taxable profit is calculated excluding the temporary
differences, which will be taxable or deductible in determining taxable profit (tax loss) of future
periods, and non-taxable or non-deductible items from the accounting profit.
(ii) Deferred income tax
Deferred income tax is recognized, using the liability method, on temporary differences arising

31
between the tax bases of assets and liabilities and their carrying amounts in the financial
statements.
However, deferred tax assets and liabilities are not recognized if they arise from initial recognition
of an asset or liability in a transaction other than a business combination that at the time of the
transaction affects neither accounting nor taxable profit or loss. Deferred income tax is
determined using tax rates and laws that have been enacted or substantially enacted by the
statement of financial position date and are expected to apply when the related deferred income
tax asset is realized or the deferred income tax liability is settled. Deferred income tax assets are
recognized only to the extent that it is probable that future taxable profit will be available against
which the temporary differences can be utilized.
The Company recognizes a deferred tax liability all taxable temporary differences associated with
investments in associates, except to the extent that the Company is able to control the timing of
the reversal of the temporary difference and it is probable that the temporary difference will not
reverse in the foreseeable future. In addition, the Company recognizes a deferred tax asset for all
deductible temporary differences arising from such investments to the extent that it is probable the
temporary difference will reverse in the foreseeable future and taxable profit will be available
against which the temporary difference can be utilized.
The carrying amount of a deferred tax asset is reviewed at the end of each reporting period and
reduces the carrying amount to the extent that it is no longer probable that sufficient taxable profit
will be available to allow the benefit of part or all of that deferred tax asset to be utilized.
Deferred income tax assets and liabilities are offset when there is a legally enforceable right to
offset current tax assets against current tax liabilities and when the deferred income taxes assets
and liabilities relate to income taxes levied by the same taxation authority on either the same
taxable entity or different taxable entities where there is an intention to settle the balances on a
net basis. Additional tax expense arisen from dividend distribution to the Company's shareholders
is recognized when the dividend distribution is recognized as a liability.
(s) Earnings per share
The Company presents its basic and diluted earnings per ordinary share in the comprehensive
statement of income. Basic earnings per share amounts are calculated by dividing net profit for
the period attributable to ordinary shareholders of the Company by the weighted average number
of ordinary shares outstanding during the period. Diluted earnings per share amounts are
calculated by adjusting net profit attributable to ordinary shareholders of the Company for basic
earnings considered potential ordinary shares with dilution effect and weighted average number
of ordinary shares outstanding.
(t) Dividend distribution
Dividend distribution to the Company’s shareholders is recognized as a liability in the financial
statements in the period in which the dividends are approved by the Company’s shareholders.

32
5. Operating Segment Information
The Company is engaged in limited financial business (loans, installment finance, and lease, etc.)
under the Specialized Credit Financial Business Law in Korea. Therefore, segment reporting is
not disclosed as the Company’s own business is comprised of a single operating segment.
6. Restricted Financial Instruments
Restricted financial instruments as at December 31, 2017 and 2016, are as follows:
(in thousands of
Korean won)
Financial
institution 2017 2016 Restriction
Due from banks
Kookmin Bank
and 2 others
9,000 9,000
Guarantee deposit for
establishing accounts
7. Trading Securities
Trading securities as at December 31, 2017 and 2016, are as follows:
(in thousands of Korean won) 2017 2016
Trading securities 1
Debt securities 504,517,214 277,319,563
1 For liquidity management purpose, the Company holds surplus cash in excess of immediate
funding needs. These surplus cash are invested in short-term, highly liquid and investment grade
money market instruments, which provide liquidity for the Company’s short-term funding needs
and flexibility in the use of other funding sources.
Debt securities as at December 31, 2017 and 2016, are as follows:
Acquisition
cost
Book amount
Commercial Paper 503,797,372 504,517,214 277,319,563
Gain and loss from trading securities recognized in profit or loss for the years ended December
31, 2017 and 2016, are as follows:

33
Gain on valuation and disposal of trading
securities 720,236 234,819
Loss on valuation and disposal of trading
securities 394 63,054
8. Available-for-sale Securities
Book amount of available-for-sale securities as at December 31, 2017 and 2016, are as follows:
Equity securities
Listed shares 4,550,000 4,725,500
Unlisted shares 150,001 248,383
Beneficiary certificates 88,379,984 62,903,820
93,079,985 67,877,703
Debt securities 113,372,965 48,518,567
206,452,950 116,396,270
Details of available-for-sale securities as at December 31, 2017 and 2016, are as follows:
(in thousands of Korean won) Book amount
Number
of shares
Percentage
of
ownership
(%)
Acquisition
cost 2017 2016
Listed shares
JNK Heaters Co., Ltd. 1,300,000 8.77 10,126,881 4,550,000 4,725,500
Unlisted shares
Tong Yang Leisure Co., Ltd. 1 6,200 0.18 190,396 100,000 105,629
Korea Minerals Co., Ltd. 7 - 70 - 70
SHINJIN B & T Co., Ltd.
(formerly, SHINJIN Co., Ltd) 3,548 4.62 141,943 - 141,943
Sungwon Material Co., Ltd. 66 - 330 - 330
OCO Co., Ltd. 26 - 260 - 260
KONI KOREA Co., Ltd. 6 - 151 - 151
SHINHEUNG PETROL Co., Ltd. 670 0.64 33,556 1 -
Mirae Songdo PFV Co. Ltd. 10,000 1 50,000 50,000 -
416,706 150,001 248,383
Beneficiary certificates

34
(in thousands of Korean won) Book amount
Number
of shares
Percentage
of
ownership
(%)
Acquisition
cost 2017 2016
Hyundai Ship Investment Fund
No.3 2
- - 7,040,000 6,903,868 8,310,813
Hi ocean Credit Private Special
Asset 1 2
- - 11,357,218 11,531,858 13,607,439
Hi ocean Credit Private Special
Asset 2 2 - - 11,000,000 11,086,823 11,113,597
Hi ocean Tanker Prof PF SA Ship
1 2
- - 18,595,274 18,762,185 18,879,280
Multi asset KDB Ocean value up
Private Fund Special Asset Trust 8
2
- - 10,760,449 10,744,470 10,992,691
KOTAM SML Private Fund Special
Asset Trust 1 2 - - 5,400,000 4,868,645 -
Hi KEXIM ECOSHIP Professional
Private Investment Trust No.6 2 - - 3,307,929 3,300,800 -
Multi asset KDB Ocean value up
Private Fund Special Asset Trust
PR-2 2 21,000,000 21,181,335 -
88,460,870 88,379,984 62,903,820
Debt securities
HS First Securitization Specialty
Co., Ltd 3 - - 15,598,000 15,794,846 32,414,391
Commercial Auto Sixth SPC 3 - - 16,000,000 15,941,008 16,104,176
Commercial Auto Seventh SPC 3 - - 18,000,000 17,815,716 -
Commercial Auto Eighth SPC 3 15,000,000 15,085,755 -
Hyundai Life Insurance 10 3 40,000,000 38,731,000 -
Hyundai Life Insurance 11 3 10,000,000 10,004,640 -
114,598,000 113,372,965 48,518,567
213,602,457 206,452,950 116,396,270
1 The fair value of the unlisted shares was estimated based on the prices provided by an external
appraiser, NICE P&I Inc.
2 The fair value of the beneficiary certificates was estimated based on the prices provided by an
external appraiser, NICE P&I Inc. The fair value of the beneficiary certificates was determined by
adding or subtracting the other assets and liabilities in the investment trust to the expected cash
flow of beneficiary certificates that is discounted using appropriate discount rate.
3 The fair value of the debt securities was estimated based on the prices provided by an external
appraiser, NICE P&I Inc. The fair value of the debt securities was determined by discounting the
expected cash flows based on principal and interest arising from trusted asset at an appropriate
discount rate.

35
9. Investments in Associates
Details of investments in associates as at December 31, 2017 and 2016, are as follows:
(in shares and
in thousands of Korean won)
Location
Number of
shares
Percentage
of ownership
(%) Acquisition cost Book amount
December 31, 2017
Hyundai Card Co., Ltd. 1
Korea 39,378,026 24.54 412,613,735 746,332,354
Hyundai Life Insurance Co., Ltd. Korea 15,509,040 20.37 180,002,130 67,523,740
592,615,865 813,856,094
December 31, 2016
Hyundai Card Co., Ltd. 1
Korea 8,889,622 5.54 113,820,162 186,161,175
Hyundai Life Insurance Co., Ltd. Korea 15,509,040 20.37 180,002,130 77,399,597
293,822,292 263,560,772
1 Although the Company owns less than 20% of voting rights of Hyundai Card Co., Ltd., the
Company was able to communicate with management of the investee and exercise voting rights
in decision-making. Accordingly, the Company applied equity method as at December 31, 2016.
The Company continued to apply the equity method as additional shares are acquired and the
percentage of ownership exceeds 20% as at December 31, 2017.
Details of valuation and other changes in investments in associates that are accounted for using
the equity method for the years ended December 31, 2017 and 2016, are as follows:
(in thousands of 2017
Korean won)
Beginning
balance Acquisition
Dividend
received
Share of profit
or loss of
associates1
Share of other
comprehensive
income of
associates2
Ending
balance
Hyundai Card Co., Ltd. 186,161,175 298,793,574 (9,175,080) 265,641,148 4,911,537 746,332,354
Hyundai Life Insurance
Co., Ltd. 77,399,597 - - (12,768,602) 2,892,745 67,523,740
263,560,772 298,793,574 (9,175,080) 252,872,546 7,804,282 813,856,094
Korean won)
Beginning balance Dividend received
Share of profit or
loss of
associates1
Share of other
comprehensive
income of
associates2
Ending
balance

36
Hyundai Card Co., Ltd. 175,093,722 - 10,523,935 543,518 186,161,175
Co., Ltd. 94,263,118 - (6,172,749) (10,690,772) 77,399,597
269,356,840 - 4,351,186 (10,147,254) 263,560,772
1
Share of profit or loss of Hyundai Card Co., Ltd. consists of gain on bargain purchase amounting
to 228,738 million on the additional shares acquired and share of profit of associates
amounting to 36,903 million for the year ended December 31, 2017.
2
Amounts before tax effect.
The tables below provide summarized financial information for associates.
Korean won) Summarized financial information for associates1
Closing
month Total assets Total liabilities Net assets
Hyundai Card Co., Ltd. December 15,416,496,792 12,546,120,736 2,870,376,056
Hyundai Life Insurance Co., Ltd. December 13,011,898,308 12,696,449,905 315,448,403
Closing
month
Operating
income
Profit (loss) for
the year
Total
comprehensive
income
Dividends
received from
associates
Hyundai Card Co.,
Ltd.
December 3,020,771,530 191,564,914 213,955,362 9,175,080
Hyundai Life
Insurance Co.,
Ltd.
December
1,745,201,263 (61,600,984) (47,193,664) -
Closing
month Total assets Total liabilities Net assets
Hyundai Card Co., Ltd. December 14,596,986,939 11,903,177,834 2,693,809,105
Hyundai Life Insurance Co., Ltd. December 10,605,353,444 10,282,502,067 322,851,377

37
Closing
month
Operating
income
Profit (loss) for
the year
Total
comprehensive
income
Dividends
received from
associates
Hyundai Card Co.,
Ltd.
December 2,754,223,397 189,966,029 199,776,997 -
Hyundai Life
Insurance Co., Ltd.
December
2,350,147,309 (19,721,990) (30,948,952) -
1
Summarized financial information for associates were adjusted to reflect fair value adjustments
made at the acquisition date.
The tables below provide a reconciliation of the summarized financial information presented to the
book amount of its interest in the associates as at December 31, 2017 and 2016.
(in thousands of
2017
of Korean)
Net assets
Percentage
of
ownership
(%)
Shares of net
asset 1
Goodwill
Unamortized
fair value
adjustments 2
Book amount
Hyundai Card Co., Ltd. 2,870,376,056 24.54 704,390,284 36,926,750 5,015,320 746,332,354
Co., Ltd. 315,448,403 20.37 56,120,685 10,142,148 1,260,907 67,523,740
3,185,824,459 760,510,969 47,068,898 6,276,227 813,856,094
(in thousands of
2016
of Korean)
Net assets
Percentage
of
ownership
(%)
Shares of net
asset Goodwill
Unamortized
fair value
adjustments 2
Book amount
Hyundai Card Co., Ltd. 2,693,809,105 5.54 149,234,425 36,926,750 - 186,161,175
Co., Ltd. 322,851,377 20.37 65,778,709 10,142,148 1,478,740 77,399,597
3,016,660,482 215,013,134 47,068,898 1,478,740 263,560,772
1 Hybrid bonds amounting to 40 billion issued by Hyundai Life Insurance Co., Ltd. are excluded
because the Company classified it as debt instruments.
2 Fair value adjustments are related to value of business acquired, sales channel and IT systems
made at the acquisition date.
10. Financial Receivables
Details of financial receivables as at December 31, 2017 and 2016, are as follows:

38
Korean won)
Principal
Deferred loan
origination fees
and costs
Present value
discount
Provision for
impairment Book amount
Loans receivable
Factoring 148,233,673 - - (135,164) 148,098,509
Loans 4,610,056,522 49,695,808 (626,345) (35,225,007) 4,623,900,978
4,758,290,195 49,695,808 (626,345) (35,360,171) 4,771,999,487
Installment financial assets
Auto installment
receivables
440,085,314 6,264,354 - (2,221,252) 444,128,416
Durable goods installment
receivables
24,453,643 (691,407) - (2,305) 23,759,931
464,538,957 5,572,947 - (2,223,557) 467,888,347
Lease receivables
Financial lease
receivables
708,632,543 949,797 - (12,731,082) 696,851,258
Advance lease assets 2,093,564 - - - 2,093,564
710,726,107 949,797 - (12,731,082) 698,944,822
5,933,555,259 56,218,552 (626,345) (50,314,810) 5,938,832,656
Korean won)
Principal
Deferred loan
origination fees
and costs
Present value
discount
Provision for
impairment Book amount
Loans receivable
Factoring 100,267,375 - - (28,546) 100,238,829
Loans 4,028,580,579 45,562,670 (394,720) (26,670,454) 4,047,078,075
4,128,847,954 45,562,670 (394,720) (26,699,000) 4,147,316,904
Installment financial assets
Auto installment
receivables
317,490,688 4,356,610 - (2,072,430) 319,774,868
Durable goods installment
receivables
14,935,840 (420,226) - (3,627) 14,511,987
332,426,528 3,936,384 - (2,076,057) 334,286,855
Lease receivables
Financial lease
receivables 582,945,047 1,387,901 - (8,732,248) 575,600,700
5,044,219,529 50,886,955 (394,720) (37,507,305) 5,057,204,459
11. Provision for Impairment
Movements on the provision for impairment of loans receivables, installment financial assets,

39
lease receivables and other assets for the years ended December 31, 2017 and 2016, are as
follows:
Korean won)
Loans
receivable
Installment
financial
assets
Lease
receivables Other assets Total
Beginning balance 26,699,000 2,076,057 8,732,248 130,607 37,637,912
Impairment loss (9,914,105) (1,043,503) (1,533,707) - (12,491,315)
Recovered 2,560,482 244,465 401,071 - 3,206,018
Disposal and repurchase (19,396,548) (1,179,394) (2,060,125) - (22,636,067)
Unwinding of discount (333,374) (15,694) (128,616) - (477,684)
Additional provisions
(reversal) 35,744,716 2,141,626 7,320,211 31,967 45,238,520
Ending balance 35,360,171 2,223,557 12,731,082 162,574 50,477,384
Korean won)
Loans
receivable
Installment
financial
assets
Lease
receivables Other assets Total
Beginning balance 24,512,045 1,565,076 4,907,651 136,233 31,121,005
Impairment loss (9,504,025) (879,856) (1,966,401) - (12,350,282)
Recovered 1,365,097 142,048 355,097 - 1,862,242
Disposal and repurchase (12,903,384) (683,158) (465,623) - (14,052,165)
Unwinding of discount (401,090) (18,724) (77,185) - (496,999)
Additional provisions
(reversal)
23,630,357 1,950,671 5,978,709 (5,626) 31,554,111
Ending balance 26,699,000 2,076,057 8,732,248 130,607 37,637,912

Fy 2017 4_q_hci_eng

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