Hyundai card (con) 2020_2_q_0902

Hyundai Card Co., Ltd. and Subsidiaries
Consolidated Interim Financial Statements
June 30, 2020 and 2019
Attachment: Report on Review of Consolidated Interim Financial Statements
Hyundai Card Co., Ltd.

Index
June 30, 2020 and 2019
Page(s)
Report on Review of Consolidated Interim Financial Statements .................... 1
Consolidated Interim Financial Statements
Consolidated Interim Statements of Financial Position ........................................... 3
Consolidated Interim Statements of Comprehensive Income..................................... 5
Consolidated Interim Statements of Changes in Equity.............................................. 6
Consolidated Interim Statements of Cash Flows ........................................................ 7
Notes to the Consolidated Interim Financial Statements .................................. 8

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Report on Review of Consolidated Interim Financial Statements
(English Translation of a Report Originally Issued in Korean)
To the Board of Directors and Shareholders of
Hyundai Card Co., Ltd.:
Report on the Consolidated Interim Financial Statements
We have reviewed the accompanying consolidated interim financial statements of Hyundai Card Co.,
Ltd. and subsidiaries (the “Group”). The consolidated interim financial statements consist of the
consolidated interim statement of financial position as of June 30, 2020, and the related consolidated
interim statement of comprehensive income for the three-month and six-month periods, consolidated
interim statement of changes in equity and consolidated interim statement of cash flows for the
six-month period ended June 30, 2020, and a summary of significant accounting policies and other
explanatory information.
Management’s Responsibility for the Consolidated Interim Financial Statements
The Group’s management is responsible for the preparation and fair presentation of the accompanying
consolidated interim financial statements in accordance with Korean International Financial Reporting
Standard (“K-IFRS”) 1034, Interim Financial Reporting, and for such internal control as management
determines is necessary to enable the preparation of consolidated interim financial statements that are
free from material misstatement, whether due to fraud or error.
Independent Accountants’ Responsibility
Our responsibility is to express a conclusion on the accompanying consolidated interim financial
statements based on our reviews.
We conducted our reviews in accordance with standards for review of consolidated interim financial
statements in the Republic of Korea. A review of interim financial information is limited primarily to
inquiries of company personnel responsible for financial and accounting matters and analytical
procedures applied to financial data and other review procedures, and this provides less assurance than
an audit. We have not performed an audit and, accordingly, we do not express an audit opinion.

Review Conclusion
Based on our review, nothing has come to our attention that causes us to believe that the
accompanying consolidated interim financial statements of the Group are not presented fairly, in all
material respects, in accordance with K-IFRS 1034, Interim Financial Reporting.
Other Matter
The comparative consolidated interim statement of comprehensive income for the three-month and
six-month periods, consolidated interim statement of changes in equity and consolidated interim
statement of cash flows for the six-month period ended June 30, 2019, were reviewed by other
accountants, and the review report on August 12, 2019, stated that nothing has come to their attention
that causes them to believe that the accompanying consolidated interim financial statements of the
Group are not presented fairly, in all material respects, in accordance with K-IFRSs.
We audited the consolidated statement of financial position as of December 31, 2019, and the related
consolidated statement of comprehensive income, consolidated statement of changes in equity and
consolidated statement of cash flows for the year then ended (not presented in the accompanying
consolidated interim financial statements), in accordance with auditing standards generally accepted
in the Republic of Korea. We expressed an unqualified opinion in our independent auditors’ report
dated March 4, 2020. The consolidated statement of financial position as of December 31, 2019,
presented for a comparative purpose in the accompanying consolidated interim financial statements
does not differ, in all material respects, from the audited consolidated statement of financial position
as of December 31, 2019.
August 13, 2020
Notice to Readers
This report is effective as of August 13, 2020, the review report date. Certain subsequent events or
circumstances, which may occur between the review report date and the time of reading this report, could
have a material impact on the accompanying consolidated interim financial statements and notes thereto.
Accordingly, the readers of the review report should understand that there is a possibility that the above review
report may have to be revised to reflect the impact of such subsequent events or circumstances, if any.
2

Consolidated Interim Statements of Financial Position
As of June 30, 2020 (Unaudited), and December 31, 2019
(In Korean won) Notes
Assets
Cash and deposits 5,25,30,31
Cash and cash equivalents ￦ 1,180,751,161,665 ￦ 730,085,686,710
Deposits 57,018,000,000 106,818,000,000
1,237,769,161,665 836,903,686,710
Securities 6,30,31
Financial assets at fair value through profit or loss 1,249,104,494,596 720,749,342,411
Financial assets at fair value through
other comprehensive income 1,483,575,000 1,483,575,000
1,250,588,069,596 722,232,917,411
Card assets 7,27,28,30,31
Card receivables 10,414,824,147,919 10,718,403,583,371
Provision for impairment (144,613,869,945) (150,917,490,969)
Short-term card loan 619,107,156,894 690,254,545,908
Long-term card loan 3,952,012,285,053 3,942,596,297,850
14,543,414,157,443 14,908,458,715,929
Loan receivables 7,30,31
Loan receivables 2,630,530,166 4,778,942,169
Provision for impairment (316,482,168) (268,427,891)
2,314,047,998 4,510,514,278
Property and equipment 9,27
Land 139,408,257,581 139,408,257,581
Buildings 148,602,999,111 148,585,297,911
Accumulated depreciation (26,992,413,227) (25,125,667,321)
Vehicles 2,514,088,391 2,514,088,391
Accumulated depreciation (1,036,135,826) (955,520,396)
Fixtures and equipment 250,614,292,162 245,913,667,283
Accumulated depreciation (206,676,753,667) (194,410,551,380)
Construction in progress 3,394,123,625 475,393,628
309,828,458,150 316,404,965,697
Other assets
Other receivables 8,30,31 638,353,843,117 126,842,993,823
Accrued revenue 8,30,31 44,682,796,456 48,983,426,496
Advance payments 56,959,566,284 32,316,679,609
Prepaid expenses 90,201,088,797 86,163,171,491
Intangible assets 10,27 104,485,089,998 104,223,082,692
Right-of-use assets 11 50,492,826,633 44,403,709,329
Derivative assets 15,29,30,31 34,763,157,916 22,011,168,789
Deferred tax assets 24 164,780,507,323 166,348,167,177
Guarantee deposits provided 5,8,30,31 20,914,832,447 22,170,535,771
Others 8,339,366,263 8,098,315,546
1,211,407,226,435 658,883,519,943
Total assets ￦ 18,555,321,121,287 ￦ 17,447,394,319,968
(Continued)
December 31, 2019June 30, 2020
(Unaudited)
3

Consolidated Interim Statements of Financial Position (Continued)
As of June 30, 2020 (Unaudited), and December 31, 2019
Liabilities
Borrowings 12,26,30,31
Borrowings ￦ 2,304,833,320,000 ￦ 2,739,000,000,000
Debentures 10,669,015,219,997 9,108,813,818,863
12,973,848,539,997 11,847,813,818,863
Other liabilities
Other payables 27,30,31 1,364,339,434,828 1,291,895,818,950
Accrued expenses 30,31 133,019,006,326 165,079,830,845
Unearned revenue 389,093,059,965 385,492,775,610
Withholdings 30,31 95,160,236,115 216,633,318,989
Lease liabilities 11,27,30,31 48,237,316,827 42,754,752,586
Derivative liabilities 15,29,30,31 49,611,724,707 21,023,992,588
Current tax liabilities 38,635,626,267 52,764,482,545
Net employee benefit liabilities 13 6,306,049,286 (2,834,390,049)
Guarantee deposits received 30,31 9,565,421,149 9,908,301,049
Provisions 14,26 112,452,076,964 110,235,273,031
2,246,419,952,434 2,292,954,156,144
Total liabilities 15,220,268,492,431 14,140,767,975,007
Equity
Share capital 16 802,326,430,000 802,326,430,000
Reserves 57,704,443,955 57,704,443,955
Hybrid securities 16 299,239,980,000 299,239,980,000
Accumulated other comprehensive income 18 (60,712,455,838) (30,647,157,992)
Retained earnings 17,19 2,236,494,230,739 2,178,002,648,998
Total equity 3,335,052,628,856 3,306,626,344,961
Total liabilities and equity ￦ 18,555,321,121,287 ￦ 17,447,394,319,968
(Concluded)
The above consolidated interim statements of financial position should be read in conjunction with the accompanying notes.
(Unaudited)
June 30, 2020 December 31, 2019
4

Consolidated Interim Statements of Comprehensive Income
Three-Month and Six-Month Periods Ended June 30, 2020 and 2019
Notes
Operating income
Card income 20,27 ₩ 305,244,526,596 ₩ 581,024,522,198 ₩ 324,052,972,449 ₩ 634,086,971,758
Effective interest method interest income 21 269,783,595,072 544,087,451,474 253,552,912,428 505,765,693,204
Gain on valuation and disposal of securities 2,549,433,025 3,930,932,276 341,415,831 2,597,432,478
Dividend income 23,137,097 77,234,743 30,020,435 30,020,435
Other operating income 22,27 6,568,622,204 115,648,038,079 47,451,576,698 94,366,963,642
584,169,313,994 1,244,768,178,770 625,428,897,841 1,236,847,081,517
Operating expenses
Card expenses 20,27 175,349,043,527 347,532,251,532 210,860,882,866 423,450,059,353
Interest expenses 21 64,938,550,602 130,780,316,820 63,738,009,770 126,811,188,844
Selling and administrative expenses 13,23,27 168,146,931,733 330,487,489,585 161,958,135,537 328,104,797,846
Securitization expenses 345,806,081 683,073,837 236,063,620 402,609,142
Impairment losses 7,8 30,824,574,983 68,810,814,555 44,493,856,971 64,905,160,185
Loss on disposal of loan receivables 26 22,337,971,314 52,412,846,352 33,060,957,448 69,793,993,750
Increase in provision for unused credit limits 14 589,396,202 4,796,272,596 2,144,617,470 2,603,129,008
Other operating expenses 22,27 (1,895,652,530) 95,508,365,448 35,515,777,102 69,271,920,342
460,636,621,912 1,031,011,430,725 552,008,300,784 1,085,342,858,470
Operating profit 123,532,692,082 213,756,748,045 73,420,597,057 151,504,223,047
Non-operating income
Gain on disposal of property and equipment, and intangible assets 31,442,672 33,763,172 3,607,721 3,607,721
Gain on disposal of assets held for sale - - - 697,036,802
Rental income 27 1,129,839,002 2,145,099,540 991,033,255 1,864,672,365
Miscellaneous gain 52,072,728 128,674,511 214,394,073 407,186,721
1,213,354,402 2,307,537,223 1,209,035,049 2,972,503,609
Non-operating expenses
Loss on disposal of property and equipment, and intangible assets 540,045,279 540,314,091 4,616,875 42,817,236
Donations 977,948,552 1,176,696,167 127,316,800 160,554,189
Miscellaneous losses 　- - - 1,975,953
1,517,993,831 1,717,010,258 131,933,675 205,347,378
Profit before income tax expense 123,228,052,653 214,347,275,010 74,497,698,431 154,271,379,278
Income tax expense 24 25,984,440,412 48,196,064,179 16,849,320,558 32,449,734,642
Profit for the period 97,243,612,241 166,151,210,831 57,648,377,873 121,821,644,636
Other comprehensive income 18
Items that will not be reclassified to profit or loss
Remeasurements of net defined benefit liabilities (2,682,533,176) (2,728,173,422) (1,491,713,666) (2,525,236,088)
Items that may be subsequently reclassified to profit or loss
Cash flow hedges 1,571,283,791 (27,337,124,424) (18,585,477,005) (17,603,906,519)
(1,111,249,385) (30,065,297,846) (20,077,190,671) (20,129,142,607)
Total comprehensive income for the period ₩ 96,132,362,856 ₩ 136,085,912,985 ₩ 37,571,187,202 ₩ 101,692,502,029
Earnings per share 32
Basic earnings per share ₩ 584 ₩ 992 ₩ 337 ₩ 715
Diluted earnings per share 584 992 337 715
The above consolidated interim statements of comprehensive income should be read in conjunction with the accompanying notes.
Periods Ended June 30
(in Korean won)
2020
(Unaudited)
2019
(Unaudited)
Three months Six months Three months Six months
5

Consolidated Interim Statements of Changes in Equity
Six-Month Periods Ended June 30, 2020 and 2019
(in Korean won)
Balance at January 1, 2019 ₩ 802,326,430,000 ₩ 45,399,364,539 ₩ 12,305,079,416 ₩ 299,239,980,000 ₩ (23,455,255,045) ₩ 2,055,291,873,757 ₩ 3,191,107,472,667
Dividends paid - - - - - (30,809,334,912) (30,809,334,912)
Total comprehensive income
Profit for the period - - - - - 121,821,644,636 121,821,644,636
Other comprehensive income
Remeasurements of net defined benefit liabilities 　- 　- 　- - (2,525,236,088) - (2,525,236,088)
Cash flow hedges 　- 　- 　- - (17,603,906,519) - (17,603,906,519)
Transactions with shareholders recognized directly in equity
Distribution from hybrid securities 　- 　- 　- - - (7,047,894,768) (7,047,894,768)
Balance at June 30, 2019 (Unaudited) ₩ 802,326,430,000 ₩ 45,399,364,539 ₩ 12,305,079,416 ₩ 299,239,980,000 ₩ (43,584,397,652) ₩ 2,139,256,288,713 ₩ 3,254,942,745,016
Balance at January 1, 2020 ₩ 802,326,430,000 ₩ 45,399,364,539 ₩ 12,305,079,416 ₩ 299,239,980,000 ₩ (30,647,157,992) ₩ 2,178,002,648,998 ₩ 3,306,626,344,961
Dividends paid - - - - - (100,611,734,322) (100,611,734,322)
Total comprehensive income
Profit for the period - - - - - 166,151,210,831 166,151,210,831
Other comprehensive income
Remeasurements of net defined benefit liabilities 　- 　- 　- - (2,728,173,422) - (2,728,173,422)
Cash flow hedges 　- 　- 　- - (27,337,124,424) - (27,337,124,424)
Transactions with shareholders recognized directly in equity
Distribution from hybrid securities 　- 　- 　- - - (7,047,894,768) (7,047,894,768)
Balance at June 30, 2020 (Unaudited) ₩ 802,326,430,000 ₩ 45,399,364,539 ₩ 12,305,079,416 ₩ 299,239,980,000 ₩ (60,712,455,838) ₩ 2,236,494,230,739 ₩ 3,335,052,628,856
Reserves Accumulated
Share Share Other Hybrid other
The above consolidated interim statements of changes in equity should be read in conjunction with the accompanying notes.
Retained
capital premium reserves securities comprehensive income earnings Total
6

Consolidated Interim Statements of Cash Flows
Six-Month Periods Ended June 30, 2020 and 2019
Cash flows from operating activities
Cash used in operating activities 25 ₩ (862,504,293,311) ₩ (397,156,239,522)
Interests received 527,733,645,693 492,067,595,939
Interests paid (114,199,731,164) (112,571,414,834)
Dividends received 77,234,743 30,020,435
Income taxes paid (50,958,256,550) (23,225,162,850)
Net cash outflow from operating activities (499,851,400,589) (40,855,200,832)
Cash flows from investing activities
Disposal of financial assets at fair value through profit or loss 900,000,000 -
Disposal of assets held for sale - 6,400,000,000
Disposal of property and equipment 8,177,273 3,620,000
Disposal of intangible assets 174,000,000 -
Acquisition of financial assets at fair value through profit or loss (2,455,809,000) (1,596,000,000)
Acquisition of property and equipment (8,899,832,302) (11,812,168,267)
Acquisition of intangible assets (16,799,446,532) (13,169,505,984)
Net decrease in guarantee deposits provided 1,386,207,613 5,757,119,408
Net cash outflow from investing activities (25,686,702,948) (14,416,934,843)
Cash flows from financing activities
Proceeds from borrowings 1,110,000,000,000 970,000,000,000
Proceeds from issue of debentures 7,322,227,650,863 4,720,121,596,879
Repayment of borrowings (1,544,166,680,000) (1,250,000,000,000)
Repayment of debentures (5,794,625,001,895) (4,045,399,997,696)
Repayment of lease liabilities (10,069,965,454) (8,917,170,575)
Dividends paid (100,597,829,970) (30,805,272,576)
Distribution from hybrid securities (7,050,000,000) (7,050,000,000)
Net cash inflow from financing activities 975,718,173,544 347,949,156,032
Net increase in cash and cash equivalents 450,180,070,007 292,677,020,357
485,404,948 -
Cash and cash equivalents at the beginning of period 25 730,085,686,710 866,456,158,726
Cash and cash equivalents at the end of period 25 ₩ 1,180,751,161,665 ₩ 1,159,133,179,083
Periods ended June 30
(Unaudited) (Unaudited)
The above consolidated interim statements of cash flows should be read in conjunction with the accompanying notes.
2020 2019
Effects of exchange rate changes on cash and cash equivalents
denominated in foreign currency
7

Notes to the Consolidated Interim Financial Statements
June 30, 2020 and 2019 (Unaudited), and December 31, 2019
1. GENERAL INFORMATION:
Hyundai Card Co., Ltd. (the “Company”), which is a controlling company in accordance with
Korean International Financial Reporting Standard (“K-IFRS”) 1110 Consolidated Financial
Statements, is engaged in the credit card business with its headquarters located at 3,
Uisadang-daero, Yeongdeungpo-gu, Seoul. On June 15, 1995, the Company acquired the
credit card business of Korea Credit Circulation Co., Ltd., and on June 16, 1995, the Korean
government granted permission to the Company to engage in the credit card business. The
Company operates its business under the Specialized Credit Financial Business Act and other
relevant applicable regulations.
As of June 30, 2020, the Company has approximately 8.79 million card members, 2.75 million
registered merchants and 31 marketing centers and branches.
As of June 30, 2020, the total ordinary shares of the Company amounted to ￦802,326 million
after several capital increases and retirement of treasury shares. The shareholders as of
June 30, 2020, and December 31, 2019, are as follows:
June 30, 2020 December 31, 2019
Number of
shares
Percentage of
ownership
(%)
Number of
shares
Percentage of
ownership
(%)
Hyundai Motor Co., Ltd. 59,301,937 36.96 59,301,937 36.96
Kia Motors Co., Ltd. 18,422,142 11.48 18,422,142 11.48
Hyundai Commercial Inc. 39,378,026 24.54 39,378,026 24.54
Consumer Preferred Choice Limited 16,046,527 9.99 16,046,527 9.99
Complete Logistic Solutions Limited 14,441,876 9.00 14,441,876 9.00
AlpInvest Partners Co-Investments 2015
I SPV B.V. 7,101,393 4.43 7,101,393 4.43
AlpInvest Partners Co-Investments 2015
II SPV B.V. 707,652 0.44 707,652 0.44
AlpInvest Mich SPV B.V. 214,221 0.14 214,221 0.14
Others 4,851,512 3.02 4,851,512 3.02
160,465,286 100.00 160,465,286 100.00
8

2. SIGNIFICANT ACCOUNTING POLICIES:
2.1 Basis of Preparation
The Hyundai Card Co., Ltd. and subsidiaries (the “Group”) maintains its accounting records in
Korean won and prepares statutory financial statements in the Korean language (Hangul) in
accordance K-IFRSs. The accompanying consolidated interim financial statements have been
condensed, restructured and translated into English from the Korean language financial
statements.
Certain information attached to the Korean language financial statements, but not required for
a fair presentation of the Group's financial position, financial performance or cash flows, is not
presented in the accompanying consolidated interim financial statements.
The Group’s consolidated interim financial statements as of and for the six-month period
ended June 30, 2020, have been prepared in accordance with K-IFRS 1034 Interim Financial
Reporting. These consolidated interim financial statements have been prepared in accordance
with the K-IFRS, which is effective or early adopted as of June 30, 2020.
(a) New standards and interpretations adopted by the Group
The Group has applied the following standards and interpretations for the first time for its
annual reporting period commencing January 1, 2020:
-K-IFRS 1103, Definition of a Business (Amendments)
The amendments clarify that while businesses usually have outputs, the outputs are not
required for an integrated set of activities and assets to qualify as a business. To be considered
a business, an acquired set of activities and assets must include, at a minimum, an input and
a substantive process that together significantly contribute to the ability to create outputs.
Additional guidance is provided that helps to determine whether a substantive process has
been acquired.
The amendments introduce an optional concentration test that permits a simplified
assessment of whether an acquired set of activities and assets is not a business. Under the
optional concentration test, the acquired set of activities and assets is not a business if
substantially all of the fair value of the gross assets acquired is concentrated in a single
identifiable asset or group of similar assets.
-Amendments to References to the Conceptual Framework in IFRS Standards
Together with the revised Conceptual Framework, which became effective upon publication
on December 21, 2018, the International Accounting Standards Board (“IASB”) has also
issued Amendments to References to the Conceptual Framework in IFRS Standards. The
document contains amendments to K-IFRSs 1102, 1103, 1106, 1114, 1001, 1008, 1034, 1037,
1038, 2112, 2119, 2120, 2122 and 2032.
9

Not all amendments, however, update those pronouncements with regard to references and
quotes from the framework so that they refer to the revised Conceptual Framework. Some
pronouncements are only updated to indicate which version of the framework they are
referencing to (the Framework (2007), the IASB Framework of 2010 or the new revised
Framework of 2018) or to indicate that definitions in the standard have not been updated with
the new definitions developed in the revised Conceptual Framework.
-K-IFRS 1116, Lease (Enforceable period)
The K-IFRS Interpretations Committee interpreted the concept of losses or penalties to be
considered in determining the enforceable period under K-IFRS 16 as a concept that includes
economic losses, as well as the amount of payments specified in the contract. It was also
interpreted that the lease is enforceable beyond the date on which the party can terminate the
lease without the consent of the other party if only one party pays a small amount.
However, the Group will fully review the impacts of the K-IFRS Interpretations Committee's
decisions on the consolidated interim financial statements and related notes and reflect them
as changes in accounting policies during the current period based on what the Due Process
Oversight Committee allows through the relevant agenda decision, and the consolidated
interim financial statements have not yet reflected the K-IFRS Interpretations Committee's
decisions. When applying the K-IFRS Interpretations Committee's decision, some of the
Group's lease agreements may differ in terms of the period of execution, and the main lease
contracts that are likely to change the judgment on the period of execution are real estate, etc.
(b) New standards and interpretations not yet adopted by the Group
Although the Group has been enacted or announced, the effective date has not met the fiscal
year starting after January 1, 2020, and the enacted and revised standards that have not been
early adopted are as follows:
-K-IFRS 1116, Lease (Amendments)
Under a practical expedient, a lessee may elect not to assess whether a rent concession,
which occurs as a direct consequence of the COVID-19 pandemic, is a lease modification. A
lessee that makes this election shall account for any change in lease payments resulting from
the rent concession the same way it would account for the change applying this standard if
the change was not a lease modification. On the other hand, the practical expedient according
to the amendment is not provided to the lessor. The practical expedient applies only to rent
concession that satisfies all the following conditions.
• The change in lease payments results in revised consideration for the lease that is
substantially the same as, or less than, the consideration for the lease immediately
preceding the change.
• Any reduction in lease payments affects only payments originally due on or before June
30, 2021.
• There is no substantive change to other terms and conditions of the lease.
The amendment is effective from the first annual reporting periods beginning after June 1,
2020.
10

2.2 Significant Accounting Policies
Significant accounting policies and method of computation used in the preparation of the
consolidated interim financial statements are consistent with those of the consolidated
financial statements as of and for the year ended December 31, 2019, except for the changes
due to the application of amendments and enactments of standards described in Note 2.1. (a)
and the one described below:
2.2.1 Income Tax Expense
Income tax expense for the interim period is recognized based on management’s best
estimate of the weighted-average annual income tax rate expected for the full financial year.
The estimated average annual tax rate is applied to the pretax income.
3. CRITICAL ACCOUNTING ESTIMATES AND ASSUMPTIONS:
(a) The Group makes estimates and assumptions concerning the future. Estimates and
assumptions are continually evaluated and are based on historical experience and other
factors, including expectations of future events that are believed to be reasonable under the
current circumstances. Actual results may differ from those estimates.
Significant accounting estimates and assumptions applied in the preparation of these
consolidated interim financial statements are the same as those that applied to the
consolidated financial statements as of and for the year ended December 31, 2019, except for
the changes due to the application of amendments and enactments of standards described in
Note 2.1 (a) and the estimates used to determine income tax expense.
(b) The Group anticipated the impact of COVID-19 and partially reflected it at the end of the
reporting period, but as COVID-19 prolongs, there are uncertainties in the extent and duration
of the impact on the Group’s business.
11

4. CONSOLIDATED SUBSIDIARIES:
Details of the consolidated subsidiaries as of June 30, 2020, and December 31, 2019, are as
follows:
Ownership interest held by
the Group (%)
Main business Location
June 30,
2020
December 31,
2019
Closing
month
Super Series 3rd SPC1 Asset securitization Korea - 0.5 December
Super Series 4th SPC1 Asset securitization Korea 0.5 0.5 December
Super Series 8th SPC1 Asset securitization Korea 0.5 - December
Super Series 9th SPC1 Asset securitization Korea 0.5 - December
Bluewalnut Co., Ltd. Electronic banking Korea 100.0 100.0 December
Money Market Trust Trust business Korea 100.0 100.0 -
1 In determining power over subsidiaries, except for Bluewalnut Co., Ltd. and Money Market
Trust, voting rights or similar rights are not major components. Accordingly, these subsidiaries
are considered as structured entities.
Above subsidiaries, except for Money Market Trust and Bluewalnut Co., Ltd., are special-
purpose companies (“SPCs”) that were established for business activities of consolidated
entities. The Company is considered to have control over SPCs as the Company has involved
in purpose and design of SPC establishments and the Company is exposed to certain risks
and rewards of SPCs. Also, all the decision-making processes of SPCs are operated on
autopilot by arrangements and articles of association, and the Company has the ability to make
changes in arrangements and articles of association. Accordingly, the Company included
SPCs under consolidation.
Meanwhile, in the event of non-payment arising from derivative contracts regarding
asset-backed securities issued by SPCs, counterparties of the derivative contracts can claim
for reimbursement from the Company.
12

Details of the Group’s subsidiaries as of June 30, 2020, are as follows:
(In millions of Korean June 30, 2020
won)
Assets Liabilities
Operating
income
Profit (loss) for
the period
Comprehensive
income (loss)
Super Series 4th SPC 798,393 792,343 25,233 - 95
Super Series 5th SPC 614,370 608,359 25,146 - (2,083)
Super Series 7th SPC 828,408 821,757 28,548 - -
Bluewalnut Co., Ltd. 48,260 32,641 28,151 (2,986) (2,966)
Money Market Trust 869,000 - 589 589 589
Subsidiaries newly included during the six-month period ended June 30, 2020, are as follows:
Name of subsidiary Reason
Super Series 8th SPC Establishment
Super Series 9th SPC Establishment
Subsidiary excluded during the six-month period ended June 30, 2020, is as follows:
Name of subsidiary Reason
Super Series 3rd SPC Liquidation
Non-controlling interests
Non-controlling interests of a consolidated SPC have been measured at initial acquisition cost
because they do not have any claim of residual income. Also, the Group does not state
non-controlling interests as capital, but as liability.
13

5. RESTRICTED FINANCIAL ASSETS:
Details of restricted financial assets as of June 30, 2020, and December 31, 2019, are as
follows:
(In millions of Korean won) June 30,
2020
December
31, 2019 Description
Cash and
deposits
Kookmin Bank and
others
18 18
Guarantee deposits for
overdraft
Shinhan Bank and
others
23,100 23,100 Secured deposits
Citibank and others 89,265 26,305
Deposits related to
securitization
Citibank and others 4,955 6,283 Others
Other financial
assets
Korea Asset
Management
7,767 7,767
Escrow account in relation to
sale of Daewoo Engineering
& Construction Co., Ltd.
125,105 63,473
6. SECURITIES:
Securities as of June 30, 2020, and December 31, 2019, are as follows:
(In millions of Korean won)
June 30,
2020
December 31,
2019
Financial assets at fair value through profit or loss
Debt securities 1,248,821 720,466
Equity securities 283 283
1,249,104 720,749
Financial assets at fair value through other
comprehensive income
Equity securities 1,484 1,484
1,250,588 722,233
14

7. CARD ASSETS AND LOAN RECEIVABLES:
Details of card assets and loan receivables by customers as of June 30, 2020, and
December 31, 2019, are as follows:
(In millions of June 30, 2020
Korean won)
Principal
Deferred
origination
cost and fee
Present
value of
discounts
Provision for
impairment
Carrying
amount
Card receivables
Household 9,654,129 (23,766) (21,542) (140,207) 9,468,614
Corporates 806,004 - - (4,407) 801,597
Short-term card loan
Household 619,107 - - (35,562) 583,545
Long-term card loan
Household 3,952,410 - (398) (262,354) 3,689,658
Loan receivables
Household 2,630 - - (316) 2,314
15,034,280 (23,766) (21,940) (442,846) 14,545,728
(In millions of December 31, 2019
Korean won)
Principal
Deferred
origination
cost and fee
Present
value of
discounts
Provision for
impairment
Carrying
amount
Card receivables
Household 9,971,721 (20,549) (20,545) (146,993) 9,783,634
Corporates 787,776 - - (3,925) 783,851
Short-term card loan
Household 690,255 - - (36,697) 653,558
Long-term card loan
Household 3,943,030 - (434) (255,181) 3,687,415
Loan receivables
Household 4,779 - - (268) 4,511
15,397,561 (20,549) (20,979) (443,064) 14,912,969
15

Changes in card assets and loan receivables for the six-month periods ended June 30, 2020
and 2019, are as follows:
(In millions of Korean won) 2020
Card receivables Short-term card loan
Lifetime expected credit
losses
losses
12-month
expected
credit losses
Not
impaired Impaired
12-month
expected credit
losses
Not
impaired Impaired
Beginning balance 9,601,372 1,145,907 12,217 504,160 181,957 4,138
Transfer between stages
Transfer to assets
measured at 12-month
expected credit losses 450,177 (450,005) (172) 34,350 (34,346) (4)
Transfer to assets
measured at lifetime
expected credit losses (447,617) 447,766 (149) (41,624) 41,632 (8)
Impairment (9,419) (6,600) 16,019 (2,627) (1,883) 4,510
New and removal (191,126) (40,021) 229 (35,349) (9,214) 2,365
Write-off - - (5,011) - - (2,186)
Disposal and repurchase (25,062) (31,498) (6,875) (12,411) (12,008) (2,345)
Ending balance 9,378,325 1,065,549 16,258 446,499 166,138 6,470
2020
Long-term card loan Loan receivables
losses
losses
12-month
expected
credit losses
Not
impaired Impaired
12-month
expected
credit losses
Not
impaired Impaired Total
Beginning balance 3,250,547 511,608 180,875 4,356 342 82 15,397,561
Transfer to assets
expected credit losses 129,037 (128,999) (38) 108 (108) - -
Transfer to assets
expected credit losses (261,503) 261,640 (137) (158) 160 (2) -
Impairment (13,499) (5,544) 19,043 (21) (14) 35 -
New and removal 185,413 (106,387) 9,529 (2,044) 35 1 (186,569)
Write-off - - (7,420) - - - (14,617)
Disposal and repurchase (32,431) (30,240) (9,083) (84) (35) (22) (162,094)
Ending balance 3,257,564 502,078 192,769 2,157 380 94 15,034,281
16

losses
losses
12-month
expected credit
losses
Not
impaired Impaired
12-month
expected credit
losses
Not
impaired Impaired
Beginning balance 7,968,398 994,173 12,118 502,124 165,843 4,585
Transfer to assets
Transfer to assets
Impairment (8,268) (6,713) 14,981 (2,649) (1,702) 4,351
New and removal 481,791 17,435 (1,677) (273) (7,908) 323
Write-off - - (5,607) - - (2,507)
Ending balance 8,405,687 978,502 12,583 474,385 156,169 4,189
2019
Long-term card loan Loan receivables
losses
losses
12-month
expected
credit losses
Not
impaired Impaired
12-month
expected
credit losses
Not
Beginning balance 2,974,942 613,327 173,300 18,849 1,327 62 13,429,048
Transfer to assets
Transfer to assets
expected credit losses (301,574) 301,829 (255) (675) 675 - -
Impairment (10,535) (6,238) 16,773 (59) (11) 70 -
New and removal 185,842 (192,473) 9,894 (9,652) (468) (16) 482,818
Write-off - - (6,926) - - (41) (15,081)
Ending balance 2,959,988 532,463 181,878 8,920 775 31 13,715,570
17

Changes in provisions for impairment of card assets and loan receivables for the six-month
periods ended June 30, 2020 and 2019, are as follows:
losses
losses
12-month
expected credit
losses
Not
impaired Impaired
12-month
expected credit
losses
Not
impaired Impaired
Beginning balance 57,854 85,350 7,714 14,116 19,948 2,633
Transfer to assets
Transfer to assets
Impairment (2,129) (1,938) 4,067 (963) (720) 1,683
Write-off - - (5,011) - - (2,186)
Recovered - - 316 - - 132
Additional (reversal of)
provisions (13,124) 27,662 5,877 2,662 5,232 2,708
Ending balance 55,868 79,161 9,585 12,952 18,793 3,816
(In millions of Korean 2020
won) Long-term card loan Loan receivables
losses
losses
12-month
expected
credit losses
Not
impaired Impaired
12-month
expected
credit losses
Not
Beginning balance 93,732 40,596 120,854 167 35 65 443,064
Transfer to assets
Transfer to assets
expected credit losses (8,330) 8,430 (100) (7) 9 (2) -
Impairment (3,371) (1,730) 5,101 (1) (1) 2 -
Write-off - - (7,420) - - - (14,617)
Recovered - - 403 - - - 851
provisions 10,399 13,040 14,369 (48) 108 38 68,923
Ending balance 93,002 41,449 127,904 90 138 88 442,846
18

losses
losses
12-month
expected credit
losses
Not
impaired Impaired
12-month
expected credit
losses
Not
impaired Impaired
Transfer to assets
Transfer to assets
expected credit losses (5,568) 5,636 (68) (1,193) 1,193 -
Impairment (2,267) (2,457) 4,724 (1,140) (917) 2,057
Write-off - - (5,607) - - (2,507)
Recovered - - 317 - - 122
provisions (8,998) 24,335 4,226 2,117 3,930 1,458
Ending balance 51,065 73,271 7,909 12,367 15,941 2,670
(In millions of Korean 2019
won) Long-term card loan Loan receivables
losses
losses
12-month
expected
credit losses
Not
impaired Impaired
12-month
expected
credit losses
Not
Beginning balance 80,740 46,781 101,835 893 178 46 400,408
Transfer to assets
Transfer to assets
expected credit losses (8,711) 8,904 (193) (38) 38 - -
Impairment (3,013) (2,052) 5,065 (24) (12) 36 -
Write-off - - (6,926) - - (41) (15,081)
Recovered - - 295 - - - 734
provisions 10,658 5,067 22,886 (501) 3 10 65,191
Ending balance 83,550 38,235 116,885 386 90 19 402,388
19

8. OTHER FINANCIAL ASSETS MEASURED AT AMORTIZED COST:
Details of other financial assets measured at amortized cost as of June 30, 2020, and
December 31, 2019, are as follows:
Bond principal
Provision for
impairment
Book Value
Other receivables 638,353 (303) 638,050
Accrued revenue 44,683 (1,930) 42,753
Guarantee deposits provided 20,915 - 20,915
703,951 (2,233) 701,718
Bond principal
Provision for
impairment
Book Value
Other receivables 126,843 (363) 126,480
Accrued revenue 48,983 (2,085) 46,898
Guarantee deposits provided 22,171 - 22,171
197,997 (2,448) 195,549
Changes in provisions of other financial assets measured at amortized cost for the six-month
periods ended June 30, 2020 and 2019, are as follows:
Other receivables Accrued revenue
Beginning balance 363 2,085
Reversal of provisions (60) (155)
Ending balance 303 1,930
Other receivables Accrued revenue
Beginning balance 263 2,100
Reversal of provisions (34) (262)
Ending balance 229 1,838
20

9. PROPERTY AND EQUIPMENT:
Changes in property and equipment for the six-month periods ended June 30, 2020 and
2019, are as follows:
(In millions of 2020
Korean won)
Land Buildings Vehicles
Fixtures and
equipment
Construction
in progress Total
Beginning balance 139,408 123,460 1,559 51,503 475 316,405
Acquisitions - 18 - 4,462 3,303 7,783
Reclassification
Reclassification
among tangible
assets - - - 385 (385) -
Reclassification into
intangible assets - - - 28 - 28
Disposal - - - (1) - (1)
Depreciation - (1,867) (81) (12,439) - (14,387)
Ending balance 139,408 121,611 1,478 43,938 3,393 309,828
Korean won)
Land Buildings Vehicles
Fixtures and
equipment
Construction
in progress Total
Acquisitions - - - 9,501 435 9,936
Reclassification
Reclassification
among tangible
assets - 27 - 2,846 (2,873) -
intangible assets - - - 1,189 - 1,189
right-of-use assets - - - (1,502) - (1,502)
Disposal - - - (42) - (42)
Depreciation - (1,864) (81) (16,860) - (18,805)
Ending balance 139,408 125,154 1,639 61,684 1,162 329,047
21

10. INTANGIBLE ASSETS:
Changes in intangible assets for the six-month periods ended June 30, 2020 and 2019, are as
follows:
Korean won) Developm-
ent cost Software Others
Construction
in progress
Member-
ship Total
Beginning balance 58,694 12,868 2 12,848 19,811 104,223
Acquisitions 4,866 1,839 - 5,588 1,942 14,235
Reclassification
Reclassification
among intangible
assets 5,421 659 - (6,080) - -
tangible assets - -
-
(28) - (28)
Disposal (540) - - - (148) (688)
Amortization (10,856) (2,401) - - - (13,257)
Ending balance 57,585 12,965 2 12,328 21,605 104,485
Korean won) Developm-
ent cost Software Others
Construction
in progress
Member-
ship Total
Beginning balance 63,138 14,789 118 8,730 19,811 106,586
Acquisitions 3,726 2,201 - 5,470 - 11,397
Reclassification
Reclassification
among intangible
assets 3,000 68 - (3,068) - -
tangible assets - - - (1,190) - (1,190)
selling and
administrative
expenses - - - (96) - (96)
Disposal - - - - - -
Amortization (16,671) (4,152) (116) - - (20,939)
Ending balance 53,193 12,906 2 9,846 19,811 95,758
22

11. LEASE:
The Group as a lessee
Changes in right-of-use assets for the six-month periods ended June 30, 2020 and 2019,
are as follows:
Korean won) Buildings Vehicles Others Total
Beginning balance 43,316 196 892 44,404
Acquisitions 48,559 159 - 48,718
Disposal (34,054) (9) - (34,063)
Amortization (10,449) (69) (172) (10,690)
Other 2,124 - - 2,124
Ending balance 49,496 277 720 50,493
Korean won) Buildings Vehicles Others Total
Beginning balance(*) 56,837 306 241 57,384
Acquisitions 4,980 26 - 5,006
Disposal (1,012) - - (1,012)
Amortization (10,667) (70) (207) (10,944)
Other 1,619 - - 1,619
Ending balance 51,757 262 34 52,053
(*) Restated in accordance with K-IFRS 1116.
The analysis of maturity of lease liabilities before discount recognized in the consolidated
interim statements of financial position as of June 30, 2020, and December 31, 2019, is as
follows:
(In millions of
June 30, 2020 December 31, 2019
Korean won)
Less than one year 16,391 12,744
Between one year and five years 20,744 20,006
More than five years 14,157 13,426
Lease liabilities before discount 51,292 46,176
23

The consolidated interim statements of comprehensive income for the six-month periods
ended June 30, 2020 and 2019, show the following amounts relating to leases:
(In millions of Korean won) 2020 2019
Interest expense relating to lease liabilities 492 621
Expense relating to short-term leases - -
Expense relating to leases of low-value assets 38 37
Variable lease payments not included in the
measurement of the lease liability
- -
The total cash outflow for leases for the six-month periods ended June 30, 2020 and 2019,
was as follows:
Total cash outflow for leases 10,108 8,954
Operating lease – the Group as a lessor
The Group provides some of the properties it owns as operating leases, and the expected
maximum lease period is 2028. The Busan office building operation lease includes the option
of the lessee to extend the lease period by five years, and the market review clause is included
when the lease renewal option is exercised. The lessee does not have a purchase option to
purchase the leased asset at the expiration of the lease term.
The analysis of maturity of operating lease recognized in the consolidated interim statements
of financial position as of June 30, 2020, and December 31, 2019, is as follows:
(In millions of Korean won) June 30, 2020 December 31, 2019
Within one year 1,380 834
One year to five years 1,069 2,673
More than five years 1,292 1,560
3,741 5,067
The amount recognized as profit for the six-month periods ended June 30, 2020, and 2019,
was as follows:
The amount recognized as profit 1,012 934
24

12. BORROWINGS:
Details of borrowings as of June 30, 2020, and December 31, 2019, are as follows:
(In millions of Korean won) Annual interest
rate (%)1
June 30,
2020
December
31, 2019
Short-term borrowings
Commercial paper Shinhan Bank and 8 others 1.32–2.24 675,000 495,000
Borrowings
Korea Development Bank and 3
others
1.97–2.28
190,000 190,000
865,000 685,000
Current portion of long-term borrowings
Commercial paper KB Securities and 7 others 1.65–2.55 860,000 1,480,000
Borrowings NH Bank and 3 others 2.36–3.31 165,000 50,000
1,025,000 1,530,000
Long-term borrowings
Commercial paper SK Securities and other 1.70 100,000 190,000
Borrowings Shinhan Bank and 5 others 2.34–3.15 314,833 334,000
414,833 524,000
2,304,833 2,739,000
1 Interest rate after considering swaps.
Details of debentures as of June 30, 2020, and December 31, 2019, are as follows:
(In millions of Korean won) Annual interest
rate (%)1
Maturity June 30, 2020
December 31,
2019
Registered short-term debentures 1.91 2020.07.23 50,000 -
Short-term debentures 1.47–1.71
2020.09.09–
2021.05.14 250,000 280,000
Current portion of debentures 1.48–3.73
2020.07.14–
2021.06.28 2,410,035 1,922,340
Long-term debentures 1.25–3.04
2021.07.09–
2029.10.30 7,969,043 6,913,882
10,679,078 9,116,222
Less: Discounts on debentures (10,063) (7,408)
10,669,015 9,108,814
1 Interest rate after considering swaps.
The outstanding debentures are non-guaranteed corporate bonds, with their principals to be
redeemed either by installment or at maturity. Bond issuance costs are recorded as discounts
on debentures and amortized using the effective interest rate method.
25

13. POSTEMPLOYMENT BENEFITS:
13.1 Defined Contribution Plan
The expense recognized in the consolidated interim statements of comprehensive income
related to postemployment benefit under the defined contribution plan for the six-month
periods ended June 30, 2020 and 2019, is as follows:
Defined contribution plan 544 499
13.2 Net Employee Benefit Liabilities
Details of net employee benefit liabilities as of June 30, 2020, and December 31, 2019, are as
follows:
Net defined benefit liabilities (assets) 1,251 (7,435)
Long-term employee benefit liabilities 5,055 4,601
6,306 (2,834)
13.3 Defined Benefit Plan
General
The Group operates a defined benefit plan for qualified employees by applying average salary
over the past three months and length of service. Plan assets mainly consist of deposits and
are exposed to risk of lower interest rate.
26

Net defined benefit liabilities (assets)
Changes in present value of net defined benefit liabilities (assets) for the six-month periods
ended June 30, 2020 and 2019, are as follows:
Present value
of the defined
benefit
obligation Plan assets
National
Pension Fund
Net defined
benefit
liabilities
(assets)
Beginning balance 73,542 (80,964) (13) (7,435)
Current service cost 5,138 - - 5,138
Interest expense (income) 835 (922) - (87)
Return on plan assets
(excluding amounts
included in interest income) - 359 - 359
Actuarial loss from change
in financial assumptions 3,277 - - 3,277
Transfer of employees
between the Company and
its related companies 262 (261) - 1
Benefits paid (4,394) 4,392 - (2)
Ending balance 78,660 (77,396) (13) 1,251
Present value
of the defined
benefit
obligation Plan assets
National
Pension Fund
Net defined
benefit
liabilities
(assets)
Beginning balance 75,934 (78,685) (14) (2,765)
Current service cost 5,685 - - 5,685
Interest expense (income) 982 (1,019) - (37)
Return on plan assets
(excluding amounts
included in interest income) - 577 - 577
Actuarial loss from change
in financial assumptions 2,809 - - 2,809
Transfer of employees
between the Company and
its related companies (360) 360 - -
Benefits paid (7,402) 7,353 2 (47)
Ending balance 77,648 (71,414) (12) 6,222
27

13.4 Long-Term Employee Benefits
Changes in present value of long-term employee benefit liabilities for the six-month periods
Beginning balance 4,601 4,214
Current service cost 216 221
Interest expense 49 52
Actuarial loss 388 209
Benefits paid (199) (189)
Ending balance 5,055 4,507
14. PROVISIONS:
Changes in provisions for the six-month periods ended June 30, 2020 and 2019, are as follows:
(In millions of
Korean won) 2020
Unused
commitment Point
Provision for
restoration Others1
Total
Beginning balance 85,165 17,992 4,474 2,603 110,234
Additional provision
(reversal) 4,796 (2,226) (3,103) - (533)
Others - - 2,750 - 2,750
Ending balance 89,961 15,766 4,121 2,603 112,451
1 Other provisions include provision for deposits in escrow account (see Note 26).
(In millions of
Korean won) 2019
Unused
commitment Point
Provision for
restoration Others Total
Beginning balance 74,619 27,668 6,038 3,374 111,699
Additional provision
(reversal) 2,604 (6,293) (3,398) (255) (7,342)
Others - - 3,084 (417) 2,667
Ending balance 77,223 21,375 5,724 2,702 107,024
28

Changes in provision for unused commitment for the six-month periods ended June 30, 2020
Lifetime expected credit losses
12-month
expected credit
losses
Not
Beginning balance 48,058 37,107 - 85,165
Transfer to assets measured
at 12-month expected credit
losses 17,118 (17,118) - -
at lifetime expected credit
losses (2,570) 2,570 - -
Impairment (5) (13) 18 -
Additional provision (reversal) (11,308) 16,122 (18) 4,796
Ending balance 51,293 38,668 - 89,961
Lifetime expected credit losses
12-month
expected credit
losses
Not
Beginning balance 44,249 30,370 - 74,619
at 12-month expected credit
losses 13,792 (13,792) - -
at lifetime expected credit
losses (2,369) 2,369 - -
Impairment (3) (12) 15 -
Additional provision (reversal) (9,844) 12,464 (15) 2,605
Ending balance 45,825 31,399 - 77,224
29

15. DERIVATIVES AND HEDGE ACCOUNTING:
There are no derivative instruments held for trading as of June 30, 2020, and December 31,
2019.
Cash flow hedge
Cash flow hedge is a hedge for the exposure to variability in cash flows that is attributable to
a particular risk associated with a recognized asset or liability (such as all or some future
interest payments on variable-rate debt) or a highly probable forecast transaction and could
affect profit or loss. When applying cash flow hedge, the portion of the gain or loss on the
hedging instrument that is determined to be an effective hedge shall be recognized in other
comprehensive income and the ineffective portion of the gain or loss on the hedging instrument
shall be recognized in profit or loss. If a hedge of a forecast transaction subsequently results
in the recognition of a financial asset or a financial liability, the associated gains or losses that
were recognized in other comprehensive income shall be reclassified from equity to profit or
loss as a reclassification adjustment in the same period or periods during which the hedged
forecasted cash flows affect profit or loss.
The Group shall discontinue prospectively if a hedging instrument expires or is sold,
terminated or exercised; the hedge no longer meets the criteria for hedge accounting; the
Group revokes the designation; or a forecast transaction is no longer expected to occur, in
which case any related cumulative gain or loss on the hedging instrument that has been
recognized in other comprehensive income from the period when the hedge was effective shall
be reclassified from equity to profit or loss as a reclassification adjustment.
The Group removes the volatility risk of future cash flows of a hedged item, such as
borrowings, caused by changes in market interest rates or in foreign currency rates, by using
derivative instruments, such as an interest rate swap or currency swap.
Details of derivative assets and liabilities as of June 30, 2020, and December 31, 2019, are
as follows:
Korean won)
Unsettled
contract
amount Assets Liabilities
Accumulated
other
comprehensive
loss1
Interest rate swap 2,115,000 - 32,665 (22,795)
Currency swap 1,849,078 34,763 16,947 (28,518)
3,964,078 34,763 49,612 (51,313)
30

Korean won)
Unsettled
contract
amount Assets Liabilities
Accumulated
other
comprehensive
loss1
Interest rate swap 2,205,000 3,201 21,024 (13,542)
Currency swap 1,146,222 18,810 - (10,434)
3,351,222 22,011 21,024 (23,976)
1 Amount reflects tax effect.
For transactions between local and foreign currencies, the unsettled contract amount of
transaction is translated by applying the basic foreign exchange rate at the end of the reporting
period to the contract amount in foreign currencies. For transactions between foreign
currencies and other foreign currencies, the unsettled contract amount is the amount
translated by applying the basic foreign exchange rate at the end of the reporting period to the
contract amount in foreign currencies purchased.
The maximum period for the Group exposed to the variability in future cash flows arising from
derivatives designated as cash flow hedges is expected to be until June 21, 2027. Meanwhile,
the loss recognized as ineffective portion related to cash flow hedge for the six-month period
ended June 30, 2020, is 7,889 million.
The average hedge ratio of derivative assets and liabilities as of June 30, 2020, is as follows:
(In millions of
Korean won) Less than
1 year
Between
1 year and
2 years
Between
2 and 3
years
Between
3 and 4 years
Between
4 and 5
years
More than
5 years Total
Nominal amount of
the hedged item
975,035 658,203 1,450,560 480,280 180,000 220,000 3,964,078
Nominal amount of
the hedging
instrument
975,035 658,203 1,450,560 480,280 180,000 220,000 3,964,078
Average hedge ratio 100% 100% 100% 100% 100% 100% 100%
31

16. SHARE CAPITAL AND HYBRID SECURITIES:
Details of capital stock as of June 30, 2020, and December 31, 2019, are as follows:
Description
Authorized
shares
Par value
Outstanding
shares
Capital stock amount
Common
stock
600,000,000
shares
￦ 5,000
160,465,286
shares
￦ 802,326 million
Details of hybrid securities classified as equity as of June 30, 2020, are as follows:
(In millions of Korean won) Issue date Maturity date Interest rate Amount
731st
Bond-type hybrid securities1
2018.07.05 2048.07.05 4.70% 300,000
Issuance costs (760)
299,240
1 Terms of issuance for bond-type hybrid securities are as follows:
Bond-type hybrid securities
Maturity 30 years (extendable at the discretion of the Company at
original maturity)
Interest rate From maturity to July 5, 2023: A fixed rate of 4.7% p.a.
with a one-off incremental of 2% per the step-up clause
five years after issuance
Interest payment condition Three months in arrears with selective deferment
Others Early redemption by issuer allowed five years after
issuance
32

17. RETAINED EARNINGS:
Retained earnings as of June 30, 2020, and December 31, 2019, consist of the following:
Legal reserves1 63,950 53,889
Reserves for electronic financial transaction 1,000 1,000
Regulatory reserve for credit losses (Note 19) 693,111 668,644
Unappropriated retained earnings 1,478,433 1,454,470
2,236,494 2,178,003
1 The Commercial Code of the Republic of Korea requires the Company to appropriate for
each financial period, as a legal reserve, an amount equal to a minimum of 10% of cash
dividends paid until such reserve equals 50% of its issued share capital. The reserve is not
available for cash dividends payment, but may be transferred to share capital or used to reduce
accumulated deficit.
Changes in retained earnings for the six-month periods ended June 30, 2020 and 2019, are
as follows:
Beginning balance 2,178,003 2,055,292
Profit for the period 166,151 121,821
Dividends paid (100,612) (30,809)
Distribution from hybrid securities (7,048) (7,048)
Ending balance 2,236,494 2,139,256
Dividends paid for the six-month period ended June 30, 2020, are as follows:
Total number
of ordinary
shares issued
Total number
of shares for
dividends
Dividend
per share
(in Korean won)
Total dividends
(in millions of Korean won)
Ordinary shares 160,465,286 160,465,286 627 100,612
33

18. ACCUMULATED OTHER COMPREHENSIVE INCOME:
Changes in accumulated other comprehensive income for the six-month periods ended June
30, 2020 and 2019, are as follows:
(In millions of Korean
won) 2020
Changes
Beginning
balance
Reclassification
of profit or loss Other Tax effects
Ending
balance
Gain (loss) on valuation of
derivatives
(23,976) (49,191) 12,963 8,891 (51,313)
Remeasurements of net
defined benefit liabilities
(6,671) - (3,636) 908 (9,399)
(30,647) (49,191) 9,327 9,799 (60,712)
won) 2019
Changes
Beginning
balance
Reclassification
of profit or loss Other Tax effects
Ending
balance
Gain (loss) on valuation of
derivatives
(12,929) (48,893) 25,641 5,649 (30,532)
Remeasurements of net
defined benefit liabilities
(10,526) - (3,387) 861 (13,052)
(23,455) (48,893) 22,254 6,510 (43,584)
34

19. REGULATORY RESERVES FOR CREDIT LOSSES:
Details of regulatory reserves for credit losses as of June 30, 2020, and December 31, 2019,
are as follows:
Amount estimated to be appropriated 27,237 24,467
Estimated ending balance 720,348 693,111
Estimated provision (reversal) of reserves for credit losses and adjusted profit after provision
(reversal) of reserves for credit losses for the six-month periods ended June 30, 2020 and
Provision (reversal) of regulatory reserves for
credit losses 27,237 (7,164)
Adjusted profit after provision (reversal) of
regulatory reserves for credit losses 138,914 128,986
Earnings per share after provision (reversal) of
reserves for credit losses (in Korean won) 866 804
35

20. CARD INCOME AND EXPENSE:
Details of card income and expense for the three-month and six-month periods ended June
(in millions of 2020 2019
Korean won) Three Months Six Months Three Months Six Months
Card income
Agent commission1
354,224 675,655 347,188 687,613
Commission income from life
service
8,597 17,443
8,790 16,943
Overseas commission income 12,771 18,383 7,765 16,430
Income from annual subscription 49,108 98,024 46,803 92,896
Others 27,277 55,305 30,788 62,198
Deduction from revenue2 (146,732) (283,785) (117,282) (241,994)
305,245 581,025 324,052 634,086
Card expense
Acquisition fee 10,737 20,846 25,741 54,380
Promotion 77,560 139,634 37,406 79,190
Service fee1 165,579 332,041 187,893 383,181
Financial service fee 1,038 2,223 1,368 2,734
A new credit sale handling fee 37,768 72,462 40,789 78,287
Overseas payment fee 10,458 26,999 19,157 36,740
Card issuance expenses 7,358 14,161 7,038 14,013
Others 11,583 22,951 8,751 16,919
Deduction from expense2 (146,732) (283,785) (117,282) (241,994)
175,349 347,532 210,861 423,450
1 The point-giving transaction with card members is that the Group provided the card member
with the customer option, and the Group determines that it controls the transaction as principal.
If the Group determines that it arranges for the provision of the good or service to customers
by credit card merchant, the effect on card income and card expense by net accounting is as
follows:
(in millions of Korean won) 2020
Three Months Six Months
Decrease in card income 96,404 187,880
Decrease in card expense 96,404 187,880
2 Deductible items in accordance with application of K-IFRS 1115.
36

21. INTEREST INCOME AND EXPENSE:
Interest income and expense for the three-month and six-month periods ended June 30, 2020
Interest income
Income from installment service 56,766 114,137 58,125 116,585
Commission income from short-
term card loan
25,096 51,505 24,585 49,099
Income from long-term card loan
(general card loan)
132,971 266,777 115,453 230,897
Income from long-term card loan
(refinancing loan)
2,080 4,370 2,401 4,754
Revolving interest income 47,766 96,567 44,797 89,552
Loans receivable income 99 247 454 1,059
Others 5,006 10,484 7,738 13,820
269,784 544,087 253,553 505,766
Interest expense
Borrowings 14,267 29,477 16,408 33,750
Debentures 50,388 100,727 47,005 92,365
Others 284 576 325 696
64,939 130,780 63,738 126,811
37

22. OTHER OPERATING INCOME AND EXPENSES:
Other operating income and expenses for the three-month and six-month periods ended June
Other operating income
Gain on foreign currency
transactions
2,743 8,224 5,440 10,302
Gain on foreign currency
translation
733 2,691 - -
Gain on derivatives transactions 9,630 16,085 - 1,860
Gain on valuation of derivatives (34,686) 34,826 26,410 47,033
Others 28,149 53,822 15,602 35,172
6,569 115,648 47,452 94,367
Other operating expenses
Loss on foreign currency
transactions
10,254 18,956 1,496 4,854
Loss on foreign currency
translation
(34,200) 35,312 26,410 47,033
Loss on valuation of derivatives 5,851 9,609 - -
Others 16,199 31,631 7,610 17,385
(1,896) 95,508 35,516 69,272
38

23. SELLING AND ADMINISTRATIVE EXPENSES:
Details of selling and administrative expenses for the three-month and six-month periods
Salaries 36,763 70,498 37,367 74,942
Postemployment benefits 3,423 6,461 3,114 6,622
Employee benefits 5,757 13,400 5,433 12,782
Travel expenses 104 336 313 676
Communication expenses 8,040 15,318 6,107 16,326
Postal expenses 2,882 6,063 2,891 5,759
Rental expenses 3,338 7,126 5,092 8,049
Taxes and dues 4,233 10,058 4,057 11,012
Repair and maintenance expenses 352 694 363 702
Insurance premiums 66 132 84 139
Entertainment expenses 71 204 102 218
Advertising expenses 24,020 37,226 7,240 10,968
Supply expenses 880 1,828 843 1,704
Vehicle maintenance expenses 3 6 4 6
Periodicals expenses 39 77 37 105
Publication expenses 550 1,369 1,499 2,431
Training expenses 609 1,177 343 516
IT expenses 11,031 23,108 10,772 22,702
Expense for temporary staff 834 1,876 1,160 2,559
Professional service expenses 32,438 66,161 36,684 72,706
Delivery commission 479 1,240 273 557
Commission expenses 9,420 19,693 8,792 17,608
Business activity expenses 159 340 301 557
Construction expenses 593 1,716 796 1,645
Depreciation 7,182 14,387 9,558 18,805
Amortization 6,729 13,258 10,469 20,939
Depreciation of right-of-use assets 5,186 10,690 5,073 10,944
Event expenses 292 532 304 505
Conference expenses 38 74 79 118
Building administrative expenses 2,636 5,439 2,808 5,503
168,147 330,487 161,958 328,105
39

24. TAX EXPENSE:
Income tax expense for the six-month periods ended June 30, 2020 and 2019, consists of the
following:
Current tax on profits for the period (including
additional payment of tax and income tax
refund) 36,829 35,684
Changes in deferred tax assets and liabilities 1,568 (9,744)
Income tax expense reflected directly to equity 9,799 6,510
Income tax expense 48,196 32,450
Income tax expenses reflected directly to equity for the six-month periods ended June 30,
2020 and 2019, are as follows:
Beginning
balance Increase
Ending
balance
Tax effect related to cash flow
hedges 7,579 8,891 16,470
Tax effect related to
remeasurements of net
defined benefit liabilities 2,109 908 3,017
9,688 9,799 19,487
Beginning
balance Increase
Ending
balance
Tax effect related to cash flow
hedges 4,017 5,649 9,666
Tax effect related to
remeasurements of net
defined benefit liabilities 3,270 861 4,131
7,287 6,510 13,797
40

A reconciliation between income before income tax and income tax expense for the six-month
periods ended June 30, 2020 and 2019, is as follows:
(in millions of Korean won) 2020 2019
Profit before income tax 214,347 154,271
Income tax based on statutory tax rate 53,765 36,872
Add (deduct):
Others (5,569) (4,422)
Income tax expense for continuing operations 48,196 32,450
Effective tax rates 22.49% 21.03%
41

25. CONSOLIDATED INTERIM STATEMENTS OF CASH FLOWS:
Details of cash and cash equivalents as of June 30, 2020, and December 31, 2019, are as
follows:
Current deposit 230 241
Ordinary deposit 328,486 133,251
Short-term financial instruments 44,677 82,828
Other cash and cash equivalents 807,358 513,765
1,180,751 730,085
Cash used in operations for the six-month periods ended June 30, 2020 and 2019, is as follows:
Adjustments:
Income tax expense 48,196 32,450
Interest expense 130,780 126,811
Impairment loss 68,811 64,905
Loss on disposal of loan receivables 52,413 69,794
Postemployment benefits 4,611 5,648
Other long-term benefits 653 482
Depreciation 14,387 18,805
Amortization 13,258 20,939
Depreciation of right-of-use assets 10,690 10,944
Loss on foreign currency translations 35,312 47,033
Loss on valuation of derivatives 9,609 -
Loss on disposal of property and equipment
and intangible assets
540 43
Non-interest-bearing installment 37,236 29,092
Other operating expenses 1,632 419
Reversal of provision (533) (7,343)
Interest income (524,199) (489,342)
Dividend income (77) (30)
Gain on valuation of financial assets at fair
value through profit or loss
(2,641) (1,824)
Gain on disposal of financial assets at fair
(517) -
Gain on foreign currency translations (2,691) -
Gain on valuation of derivatives (34,826) (47,033)
42

Amortization of present value of discounts of
card assets
(36,238) (25,371)
Amortization of deferred origination cost and
fee of card assets
(19,889) (16,424)
Gains on disposal of property and equipment
and intangible assets
(34) (4)
Gain on disposal of assets held for sale - (697)
Other operating income (13) (20)
(193,530) (160,723)
Changes in operating assets and liabilities:
Decrease (increase) in financial assets at fair
(523,641) 57,989
Decrease (increase) in card assets 262,782 (412,185)
Decrease in loan receivables 2,050 10,231
Increase in other receivables (511,511) (5,908)
Decrease in other assets 10,882 3,103
Increase in other payables 76,550 117,466
Decrease in withholdings (121,473) (112,071)
Decrease in accrued expenses (33,822) (24,834)
Increase in other liabilities 3,058 7,954
(835,125) (358,255)
Cash used in operations (862,504) (397,156)
43

26. CONTINGENCIES AND COMMITMENTS:
(a) Significant commitments
The Group made an intraday bank overdraft agreement of 150 billion with Kookmin Bank
and four other institutions, and the Group made an agreement of 1,358.9 billion with
Kookmin Bank and 16 other institutions for general loans and credit line as of June 30, 2020.
(b) In relation to the leased office building, the Group can exercise preemptive rights if the
lessor plans to sell the real estate after four years and five months from the lease
commencement date on the lease agreement.
(c) Pending litigations
As of June 30, 2020, the Group is involved in 12 cases (12,371 million) as a defendant and
seven cases (20,324 million) as a plaintiff for debt collection against multiple debtors in the
important pending litigations. The Group does not anticipate that these pending litigations
referred above, will have a significant effect on its consolidated interim financial statements.
(d) Deposit for loss reimbursement
As of June 30, 2020, the Group has deposits of the proceeds and interests from the sale of
shares of Daewoo Engineering & Construction Co., Ltd. in an escrow account amounting to
2,603 million and 5,164 million, respectively. The Group recognized 2,603 million of the
provision on deposits in escrow account (see Note 14).
(e) Contract of sale of receivables
The Group entered into a contract with Hyundai Capital Services, Inc. relating to its sale of
receivables on January 24, 2006. In accordance with the contract, the Group sells the
receivables that are 60 days or more past due or written off (partially including receivables that
are before 60 days) to Hyundai Capital Services, Inc. Such sale occurs five times a month on
designated cutoff dates at the amount calculated using a predetermined price pursuant to the
contract. As a result, losses on disposal of loans receivable amounting to 52,413 million and
69,794 million for the six-month periods ended June 30, 2020 and 2019, respectively, were
recognized.
44

(f) Reserve for loss reimbursement
The Group has reserves for electronic financial transactions in case fraudulent credit card
activities or accidents occurred in accordance with the Electronic Financial Transactions Act.
(g) Insurance for the implementation of the liability for damages
The Group has insured 1 billion for the implementation of the liability for damages in
accordance with the Article 43 of the Credit Information Act.
(h) Commitment associated with asset-backed securitization
The Group continuously transfers receivables to maintain that the balance of the asset-backed
securitization is above a certain level of trust beneficiary certificates relating to the
asset-backed securitization. According to the agreement on the Group’s asset-backed
securitization, in order to enhance the credit level of the asset-backed securities, several
provisions are in place as trigger clauses to be used for early redemption calls, thereby limiting
the risk that the investors are exposed to, resulting from a change in quality of the assets in
the future. In the event that the asset-backed securitization of the Group is in violation of the
applicable trigger clause, the Group is obliged to make early redemption for the asset-backed
securities. Meanwhile, when an event of default occurs from derivative contracts regarding
asset-backed securities issued by Super Series 4th SPC, Super Series 5th SPC, Super Series
6th SPC, Super Series 8th SPC and Super Series 9th SPC, the Company may be liable for
reimbursement of losses incurred on counterparties.
(i) Agreement relating to borrowing liability
As of June 30, 2020, the Group has entered into agreements, including trigger clause with its
creditors for the purpose of credit enhancement of certain borrowing liabilities. If the Group
breaches its trigger clause, the Group may be subject to early repayment or
suspension/termination of contracts with the creditors.
45

27. RELATED-PARTY TRANSACTIONS:
As of June 30, 2020, details of the related parties are as follows:
Companies
Parent company Hyundai Motor Company
Other related parties Green Air; Kia Motors; Kia Tigers; Maintrans Co., Ltd.; Busan
Finance Center AMC; Seoul PMC; HL Green Power; WIA-MAGNA
Powertrain; Eukor Car Carriers; Innocean Worldwide; Iljin Bearing;
Chunbuk Hyundai Motors FC; G-Marine Service Co., Ltd.; GIT; Korea
Credit Bureau; Hankook Economy Daily; Haevichi Hotels & Resorts;
Haevichi Country Club; Hyundai Construction; Hyundai Glovis;
Hyundai Transys; Hyundai City Corporation; Hyundai Rotem;
Hyundai Materials; Hyundai Mobis; Hyundai BNG Steel; Hyundai
Farm Land & Development; Hyundai Engineering & Steel Industries;
Hyundai IHL; Hyundai Energy; Hyundai Engineering; Hyundai NGV;
Hyundai MSEAT; Hyundai MNSOFT; Hyundai Auto Ever Systems;
Hyundai-autron; Hyundai WIA; Hyundai WIA IHI Turbo; Hyundai Steel
Company; HYUNDAI Architects & Engineers Assoc.; Hyundai Special
Steel Company; HMC Investment Securities Co., Ltd.; Hyundai
Capital; Hyundai Commercial; Hyundai KEFICO; Hyundai Partecs;
MOCEAN Co., Ltd.; Hyundai Capital America; Consumer Preferred
Choice Limited; Complete Logistic Solutions Limited; Alplnvest
Partners Co-Investments 2015 I SPV B.V.; AlpInvest Partners Co-
Investments 2015 II SPV B.V.; AlpInvest Mich SPV B.V.; and others
Sales and purchases with related parties for the six-month periods ended June 30, 2020 and
Korean won) Income Expenses Others
Card
income
Rental
income Others
Card
expense
Selling and
administrative
expenses Others1
Purchase of
property and
equipment
and intangible
assets
Disposal of
assets2
Parent company
Hyundai Motor
Company 87,873 - 287 - 1 189 - -
Other related
parties
Hyundai Capital - 451 15,449 25,850 1,291 12,136 - 54,295
Kia Motor Company 29,596 - - - - 38 - -
Hyundai Auto Ever
Systems 1,667 - 24 - 23,697 367 8,283 -
Hyundai Engineering 2 - - - 5,629 - - -
Hyundai Steel
Company 1 - - - - (1) - -
Others 886 857 834 26 5,182 536 - -
120,025 1,308 16,594 25,876 35,800 13,265 8,283 54,295
46

1 Reversal of provision for impairment on card assets due from related party amounting to
₩19 million is included.
2 The book value before disposal (before deducting provision for impairment) is ₩162,094
million.
Korean won) Income Expenses Others
Card
income
Rental
income Others
Card
expense
Selling and
administrative
expenses Others1
Purchase of
property and
equipment
and intangible
assets
Disposal of
assets2
Parent company
Hyundai Motor
Company 74,129 - - - 51 172 - -
Other related
parties
Hyundai Capital - 505 14,805 20,938 1,132 11,159 - 62,531
Kia Motor Company 28,855 - 100 - - 62 - -
Hyundai Auto Ever
Systems 2,022 - 450 - 30,920 - 10,842 -
Hyundai Engineering 8 - - - 5,270 (1) - -
Hyundai Steel
Company 2 - - - - (3) - -
Others 1,033 714 679 19 1,756 954 - -
106,049 1,219 16,034 20,957 39,129 12,343 10,842 62,531
1 Impairment loss on card assets due from related party amounting to ₩34 million is
included.
2 The book value before disposal (before deducting provision for impairment) is ₩181,214
million.
47

Outstanding balances arising from sales/purchases of goods and services as of June 30, 2020,
and December 31, 2019, are as follows:
(In millions of
Korean won)
June 30, 2020
Receivables Payables
Unused
credit limit2
Card
assets1
Provision
for
impairment Others
Other
payables Others3
Parent company
Hyundai Motor
Company 38,679 (67) - 41,167 - 171,321
Other related parties
Hyundai Capital 72,157 (145) 2 4,540 753 195,478
Kia Motor Company 17,544 (30) - 18,860 - 52,456
Hyundai Auto Ever
Systems 3,999 (12) - 2,072 3,286 42,001
Hyundai Engineering 2,361 (4) - - - 3,639
Hyundai Steel
Company 3,183 (5) - 2,101 - 26,817
Others 23,777 (133) - 2,777 951 189,084
161,700 (396) 2 71,517 4,990 680,796
1 Unsettled amount of the corporate purchasing card amounting to 36,303 million is included
and the amounts used and redeemed for the six-month period ended June 30, 2020, are
262,423 million and 274,853 million, respectively.
2 Unused credit limit of the corporate purchasing card is included.
3 As of June 30, 2020, the repayment amount of lease liabilities under lease contract with
related parties is 2,026 million.
48

Korean won) Receivables Payables
Unused
credit limit2
Card
assets1
Provision
for
impairment Others
Other
payables Others
Parent company
Hyundai Motor
Company 60,519 (76) - 27,803 - 149,481
Hyundai Capital 62,156 (89) 164 2,976 807 208,651
Kia Motor Company 29,173 (37) - 17,080 - 40,827
Hyundai Auto Ever
Systems 5,077 (11) - 11,698 1,630 40,923
Hyundai Engineering 3,287 (4) - 3 - 2,713
Hyundai Steel
Company 5,088 (6) - 3,406 - 24,912
Others 36,911 (191) 1 4,481 896 175,757
202,211 (414) 165 67,447 3,333 643,264
1 Unsettled amount of the corporate purchasing card amounting to 48,733 million is included
and the amounts used and redeemed for the year ended December 31, 2019, are 670,569
million and 668,015 million, respectively.
2 Unused credit limit of the corporate purchasing card is included.
3 As of December 31, 2019, the repayment amount of lease liabilities under lease contract
with related parties is 692 million.
Compensation for key management for the six-month periods ended June 30, 2020 and
2019, is as follows:
Short-term employee benefits 5,277 5,867
Postemployment benefits 1,178 983
Other long-term benefits 7 6
6,462 6,856
49

The fund transactions with related parties for the six-month periods ended June 30, 2020 and
Outstanding fund transactions included in card assets are as flows:
(In millions of
Korean won) Beginning of 2020 Net change1 June 30, 2020
Parent company
Hyundai Motor
Company 60,519 (21,840) 38,679
Hyundai Capital 62,156 10,001 72,157
Kia Motor Company 29,173 (11,629) 17,544
Hyundai Auto Ever
Systems 5,077 (1,078) 3,999
Hyundai Engineering 3,287 (926) 2,361
Others 41,999 (15,039) 26,960
202,211 (40,511) 161,700
1 The card asset-related fund transaction is stated as net change in consideration of the
business activities with high turnover, large amounts and short maturity.
(In millions of
Korean won) Beginning of 2019 Net change1
June 30, 2019
Parent company
Hyundai Motor
Company 44,908 (5,530) 39,378
Hyundai Capital 53,076 7,838 60,914
Kia Motor Company 16,223 3,069 19,292
Hyundai Auto Ever
Systems 8,415 179 8,594
Hyundai Engineering 3,533 (506) 3,027
Others 35,845 (9,924) 25,921
162,000 (4,874) 157,126
1 The card asset-related fund transaction is stated as net change in consideration of the
business activities with high turnover, large amounts and short maturity.
50

Dividends paid to the related parties for the six-month periods ended June 30, 2020 and 2019,
are as follows:
Parent company and others 97,570 29,878
There are no payment guarantees and collateral provided by the Group for the financial
supports to the related parties as of June 30, 2020, and no collateral and payment guarantees
are provided by the related parties.
51

28. TRANSFERS OF FINANCIAL ASSETS:
The Company had comprehensively entrusted receivables to a trust account of a trustee in
the form of a money bond trust, and the trust account issued beneficiary right certificate of
investor, beneficiary right certificate of transferor and subordinated beneficiary right certificate
with trust property entrusted by the Company as underlying asset, and as the Company is
providing credit reinforcement by acquiring beneficiary right certificate of transferor and
subordinated beneficiary right certificate, if any impairment loss incurred in receivables
belongs to the underlying asset, the risk preferentially belongs to the Company.
Asset-backed card assets
Book value of assets1 4,851,379 4,313,988
Book value of the associated liabilities 2,243,779 1,543,576
1 The amount is before provision for impairment.
As of June 30, 2020, the Group has issued its securitization liabilities with card assets as an
underlying asset, and the related securitization liabilities have the right of recourse about the
underlying assets. As of June 30, 2020, the fair value of financial assets transferred, but not
eliminated is ₩4,811,221 million, the fair value of related liabilities is ₩2,231,611 million and
net position is ₩2,579,610 million.
52

29. OFFSETTING FINANCIAL ASSETS AND FINANCIAL LIABILITIES:
The Group has entered into derivative contracts that include International Swaps and
Derivatives Association (“ISDA”) master netting agreements.
Generally, in such arrangements, all contracts that exist in the same currency are consolidated
into one net amount and paid from one party to the other. Also, in the event of a credit event,
such as bankruptcy, all contracts existing under the agreement will be cleared, the liquidating
value will be assessed and all contracts will be settled on a net basis.
The ISDA arrangement does not meet the offset requirement in the consolidated interim
financial statements. Currently, the Group does not have a legally enforceable right of setoff
in recognized assets and liabilities because the right of setoff cannot be exercised before a
credit event, such as bankruptcy, occurs.
The effects of netting agreements as of June 30, 2020, and December 31, 2019, are as follows:
Korean won) Amounts not offset
Recognized
financial
assets and
liabilities
Gross
financial
assets and
liabilities
set off
Net amounts
presented in
the
consolidated
interim
statement of
financial
position
Financial
instruments
Cash
collateral
received Net amount
Financial assets
Derivative assets 34,763 - 34,763 - - 34,763
Financial liabilities
Derivative liabilities 49,612 - 49,612 - - 49,612
Korean won) Amounts not offset
Recognized
financial
assets and
liabilities
Gross
financial
assets and
liabilities
set off
Net amounts
presented in
the
consolidated
statement of
financial
position
Financial
instruments
Cash
collateral
received Net amount
Financial assets
Derivative assets 22,011 - 22,011 419 - 21,592
Derivative liabilities 21,024 - 21,024 419 - 20,605
53

30. FINANCIAL INSTRUMENTS BY CATEGORY:
Carrying amounts of financial instruments by category as of June 30, 2020, and December 31,
won) June 30, 2020
Financial
assets at
amortized
cost
Financial assets
at fair value
through profit or
loss
Financial assets
at fair value
through other
comprehensive
income
Derivative
instruments
for hedging Total
Financial assets
Cash and deposits 1,237,769 - - - 1,237,769
Securities - 1,249,104 1,484 - 1,250,588
Card assets and loan
receivables
14,545,728 - - - 14,545,728
Other financial assets1 701,718 - - 34,763 736,481
16,485,215 1,249,104 1,484 34,763 17,770,566
(In millions of Korean won) June 30, 2020
at amortized cost
Derivative instruments
for hedging Total
Borrowings 12,973,849 - 12,973,849
Other financial liabilities2 1,638,734 49,612 1,688,346
14,612,583 49,612 14,662,195
1 Other financial assets consist of other receivables, accrued income, guarantee deposits and
derivative assets.
2 Other financial liabilities consist of other payables, withholdings, accrued expenses, lease
liabilities, derivative liabilities and guarantee deposits received.
won) December 31, 2019
Financial
assets at
amortized
cost
Financial assets
at fair value
through profit or
loss
Financial assets
at fair value
through other
comprehensive
income
Derivative
instruments
for hedging Total
Financial assets
Cash and deposits 836,904 - - - 836,904
Securities - 720,749 1,484 - 722,233
Card assets and loan
receivables
14,912,970 -
-
- 14,912,970
Other financial assets1 195,549 - - 22,011 217,560
15,945,423 720,749 1,484 22,011 16,689,667
54

(In millions of Korean won) December 31, 2019
at amortized cost
Derivative instruments
for hedging Total
Borrowings 11,847,814 - 11,847,814
Other financial liabilities2 1,713,520 21,024 1,734,544
13,561,334 21,024 13,582,358
1 Other financial assets consist of other receivables, accrued income, guarantee deposits and
derivative assets.
2 Other financial liabilities consist of other payables, withholdings, accrued expenses, lease
liabilities, derivative liabilities and guarantee deposits received.
Net gains or losses on each category of financial instruments for the six-month periods ended
June 30, 2020 and 2019, are as follows:
Interest income
Interest
expenses Card income
Card
expenses Impairment loss
Financial assets
Financial assets at amortized cost 544,087 - 581,025 347,532 68,811
profit or loss - - - - -
other comprehensive income - - - - -
Derivative instruments for hedging - - - - -
Financial liabilities at amortized cost - 130,780 - - -
544,087 130,780 581,025 347,532 68,811
Gain on
valuation
Gain (loss) on
disposal
Dividend
income
Gain (loss) on
foreign
currency
translation
Gain (loss) on
foreign
currency
transactions
Financial assets
Financial assets at amortized cost - (52,413) - 485 5,352
profit or loss 2,641 1,290 54 - -
other comprehensive income - - 23 - -
Derivative instruments for hedging 31,746 16,085 - - -
Financial liabilities at amortized cost - - - (33,106) (16,085)
Derivative instruments for hedging (6,529) - - - -
27,858 (35,038) 77 (32,621) (10,733)
55

Interest income
Interest
expenses Card income
Card
expenses Impairment loss
Financial assets
Financial assets at amortized cost 505,766 - 634,087 423,450 64,905
profit or loss - - - - -
other comprehensive income - - - - -
Financial liabilities at amortized cost - 126,811 - - -
505,766 126,811 634,087 423,450 64,905
Gain on
valuation
Gain (loss) on
disposal
Dividend
income
Gain (loss) on
foreign
currency
translation
Gain (loss) on
foreign
currency
transactions
Financial assets
Financial assets at amortized cost - (69,794) - - 7,307
profit or loss 1,824 773 - - -
other comprehensive income - - 30 - -
Derivative instruments for hedging 31,553 - - - -
Financial liabilities at amortized cost - - - (47,033) (1,860)
Derivative instruments for hedging 15,480 1,860 - - -
48,857 (67,161) 30 (47,033) 5,447
56

31. FAIR VALUE OF FINANCIAL INSTRUMENTS:
Fair value hierarchy classifications of the financial instruments that are subsequently
measured at fair value as of June 30, 2020, and December 31, 2019, are as follows:
(In millions of Korean won) June 30, 2020
Book value Fair value Level 1 Level 2 Level 3
Financial assets
Financial assets at fair value
Securities at fair value
through profit or loss1
1,249,104 1,249,104 - 1,235,285 13,819
through other
comprehensive income2
1,484 1,484 - - 1,484
Derivative assets 34,763 34,763 - 34,763 -
Financial liabilities at fair value
Derivative liabilities 49,612 49,612 - 49,612 -
1 As of June 30, 2020, among the securities at fair value through profit or loss in Level 3, equity
instruments amounting to 2,715 million are measured at cost since cost is deemed as a
reasonable approximation of fair value.
2 As of June 30, 2020, among the securities at fair value through other comprehensive income
in Level 3, equity instruments amounting to 1,484 million are measured at cost since cost is
deemed as a reasonable approximation of fair value.
(In millions of Korean won) December 31, 2019
Book value Fair value Level 1 Level 2 Level 3
Financial assets
Financial assets at fair value
through profit or loss1
720,749 720,749 - 709,006 11,743
through other
comprehensive income2
1,484 1,484 - - 1,484
Derivative assets 22,011 22,011 - 22,011 -
Financial liabilities at fair value
Derivative liabilities 21,024 21,024 - 21,024 -
1 As of December 31, 2019, among the securities at fair value through profit or loss in Level 3,
equity instruments amounting to 2,576 million are measured at cost since cost is deemed
as a reasonable approximation of fair value.
2 As of December 31, 2019, among the securities at fair value through other comprehensive
income in Level 3, equity instruments amounting to 1,484 million are measured at cost since
cost is deemed as a reasonable approximation of fair value.
57

To provide information about the reliability of the inputs used in determining fair value, the
Group classifies its financial instruments into three levels prescribed under the accounting
standards. Financial instruments that are measured at fair value are categorized by the fair
value hierarchy whereby the levels are defined as follows:
- Level 1: The fair value of financial instruments traded in active markets (such as publicly
traded derivatives and equity securities) is based on quoted market prices at the end of
the reporting period. The quoted marked price used for financial assets held by the Group
is the current bid price. These instruments are included in Level 1.
- Level 2: The fair value of financial instruments that are not traded in an active market (for
example, over-the-counter derivatives) is determined using valuation techniques that
maximize the use of observable market data and rely as little as possible on entity-specific
estimates. If all significant inputs required to measure an instrument at fair value are
observable, the instrument is included in Level 2.
- Level 3: If one or more of the significant inputs are not based on observable market data,
the instrument is included in Level 3. Examples include unlisted equity securities.
There are no changes in fair value hierarchy level for the six-month period ended June 30,
2020.
The following table presents the changes in Level 3 financial instruments for the six-month
periods ended June 30, 2020 and 2019:
Securities at fair
value through profit
or loss
Securities at fair
value through other
comprehensive
income
Acquisition 2,456 -
Disposition (463) -
Profit for the period 83 -
Ending balance 13,819 1,484
58

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