Hcc 2013 audit_en

HYUNDAI CARD CO., LTD. AND ITS SUBSIDIARIES
CONSOLIDATED FINANCIAL STATEMENTS
AS OF AND FOR THE YEARS ENDED
DECEMBER 31, 2013 AND 2012,
AND INDEPENDENT AUDITORS’ REPORT

Independent Auditors’ Report
English Translation of a Report Originally Issued in Korean
To the Shareholders and Board of Directors of
Hyundai Card Co., Ltd.:
We have audited the accompanying consolidated financial statements of Hyundai Card Co., Ltd. (the “Company”)
and its subsidiaries (the “Consolidated Entity”). The financial statements consist of the consolidated statements of
financial position as of December 31, 2013 and 2012, and the related consolidated statements of comprehensive
income, consolidated statements of changes in shareholders’ equity and consolidated statements of cash flows, all
expressed in Korean won, for the years ended December 31, 2013 and 2012. The Company’s management is
responsible for the preparation and fair presentation of the consolidated financial statements and our responsibility is
to express an opinion on these consolidated financial statements based on our audits.
We conducted our audits in accordance with auditing standards generally accepted in the Republic of Korea. Those
standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the
amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used
and significant estimates made by management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the
financial position of the Company as of December 31, 2013 and 2012, and the results of its operations and its cash
flows for the years ended December 31, 2013 and 2012, in conformity with Korean International Financial
Reporting Standards (“K-IFRS”).
Accounting principles and auditing standards and their application in practice vary among countries. The
accompanying consolidated financial statements are not intended to present the financial position, results of
operations and cash flows in accordance with accounting principles and practices generally accepted in countries
other than the Republic of Korea. In addition, the procedures and practices utilized in the Republic of Korea to audit
such financial statements may differ from those generally accepted and applied in other countries. Accordingly, this
report and the accompanying consolidated financial statements are for use by those knowledgeable about Korean
accounting principles and auditing standards and their application in practice.
March 12, 2014
Notice to Readers
This report is effective as of March 12, 2014, the auditors’ report date. Certain subsequent events or
circumstances may have occurred between the auditors’ report date and the time the auditors’ report is read. Such
events or circumstances could significantly affect the accompanying consolidated financial statements and may
result in modifications to the auditors’ report.

(the “Consolidated Entity”)
CONSOLIDATED FINANCIAL STATEMENTS
AS OF AND FOR THE YEARS ENDED
DECEMBER 31, 2013 AND 2012
The accompanying consolidated financial statements, including all footnote disclosures, were
prepared by and are the responsibility of the Consolidated Entity.
Chung, Tae Young
Chief Executive Officer

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
AS OF DECEMBER 31, 2013 AND 2012
(Unit: Korean won)
December 31, 2013 December 31, 2012 January 1, 2012
ASSETS:
CASH AND BANK DEPOSITS (Notes 5, 31, 32 and 33):
Cash and cash equivalents ￦ 965,455,273,460 ￦ 791,547,295,193 ￦ 830,022,903,023
Bank deposits 33,031,500,000 33,029,000,000 33,031,500,000
Total cash and bank deposits 998,486,773,460 824,576,295,193 863,054,403,023
INVESTMENT FINANCIAL ASSETS (Notes 6 and 33):
Financial assets available-for-sale (AFS) 1,766,969,764 1,766,969,764 1,766,969,764
Total investment financial assets 1,766,969,764 1,766,969,764 1,766,969,764
CARD ASSETS (Notes 7, 8, 30, 32 and 33):
Card receivables, net of present value discounts, deferred
origination fees and allowance for doubtful accounts 6,313,106,238,640 6,530,709,506,111 6,432,351,415,041
Cash advances, net of allowance for doubtful accounts 818,108,800,994 906,232,767,098 978,117,626,263
Card loans, net of present value discounts, deferred loan
origination fees and allowance for doubtful accounts 2,597,951,734,450 2,270,095,402,706 1,963,797,640,687
Total card assets 9,729,166,774,084 9,707,037,675,915 9,374,266,681,991
Loans
Other loans, net of allowance for doubtful accounts - - 469,647,440
Total cash and bank deposits - - 469,647,440
PROPERTY AND EQUIPMENT (Notes 9, 11, 14 and 30):
Land 122,011,816,788 122,011,816,788 83,994,796,609
Buildings, net of accumulated depreciation 72,882,206,486 60,330,598,734 42,186,583,765
Vehicles, net of accumulated depreciation 50,595,808 163,464,977 270,015,754
Fixtures and equipment, net of accumulated depreciation 53,694,222,895 56,690,437,564 57,974,548,577
Finance lease assets 277,834,126 1,389,170,627 2,500,507,128
Construction in progress 33,125,461,350 23,797,602,168 471,628,080
Total property and equipment 282,042,137,453 264,383,090,858 187,398,079,913
OTHER FINANCIAL ASSETS
(Notes 5, 8, 19, 30, 32 and 33):
Other accounts receivable, net of allowance for doubtful
accounts 93,483,695,738 85,387,050,368 44,939,903,548
Accrued revenue, net of allowance for doubtful accounts 46,807,953,115 43,654,761,801 43,753,371,236
Guarantee deposits 34,819,962,715 52,348,673,218 52,758,804,118
Derivative assets 2,750,372,571 901,423,501 2,555,101,143
Total other financial assets 177,861,984,139 182,291,908,888 144,007,180,045
OTHER NON-FINANCIAL ASSETS
(Notes 8, 10, 26 and 30):
Advance payments, net of allowance for doubtful accounts 12,298,291,571 11,254,701,307 25,223,575,660
Prepaid expenses 46,967,290,940 48,279,724,993 48,548,656,736
Intangible assets 127,029,551,626 74,664,032,134 72,976,002,526
Deferred income tax assets 143,222,807,823 135,666,642,303 112,403,093,896
Others 2,035,111,023 2,342,574,040 21,819,424,816
Total other non-financial assets 331,553,052,983 272,207,674,777 280,970,753,634
Total Assets ￦ 11,520,877,691,883 ￦11,252,263,615,395 ￦10,851,933,715,810
(Continued)

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (CONTINUED)
AS OF DECEMBER 31, 2013 AND 2012
(Unit: Korean won)
December 31, 2013 December 31, 2012 January 1, 2012
LIABILITIES AND SHAREHOLDERS’
EQUITY:
BORROWINGS:
Borrowings (Notes 12, 32 and 33) ￦ 212,500,000,000 ￦ 487,500,000,000 ￦ 590,000,000,000
Bonds payable, net of discounts on bonds
(Notes 13, 29, 32 and 33) 6,978,262,324,353 6,533,175,825,125 6,481,760,496,118
Total borrowings 7,190,762,324,353 7,020,675,825,125 7,071,760,496,118
RETIREMENT BENEFIT (Note 15)
Retirement benefit obligation 3,367,411,536 10,695,054,186 17,774,550,158
Total retirement benefit 3,367,411,536 10,695,054,186 17,774,550,158
OTHER FINANCIAL LIABILITIES
(Notes 14, 19, 30, 32 and 33):
Accounts payable 1,063,742,843,494 1,186,714,518,145 1,066,705,610,154
Withholdings 126,896,545,334 123,824,521,370 64,312,342,703
Accrued expenses 191,925,249,569 139,353,829,793 140,922,092,976
Finance lease liabilities 298,002,314 1,452,239,137 2,548,330,830
Derivative liabilities 48,665,166,455 53,554,957,780 5,326,133,113
Guarantee deposits 8,076,226,724 12,776,716,986 11,684,414,000
Total other financial liabilities 1,439,604,033,890 1,517,676,783,211 1,291,498,923,776
OTHER NON-FINANCIAL LIABILITIES :
Withholdings 7,850,826,740 6,968,385,070 5,649,822,585
Unearned revenue (Note 17) 393,154,182,657 397,830,493,299 347,865,031,849
Provisions (Notes 18 and 28) 86,321,526,532 75,687,285,760 80,233,007,232
Current tax liability 33,669,310,842 30,439,361,053 40,468,853,188
Total other non-financial liabilities 520,995,846,771 510,925,525,182 474,216,714,854
SHAREHOLDERS’ EQUITY :
Attributable to owners of the Company
Share capital (Note 20) 802,326,430,000 802,326,430,000 802,326,430,000
Capital surplus (Note 21) 57,704,443,955 57,704,443,955 57,704,443,955
Retained earnings (Notes 22 and 24) 1,511,954,114,940 1,348,744,482,014 1,154,445,886,596
Reserves (Notes 23 and 26) (5,856,733,562) (16,504,748,278) (17,813,549,647)
Non-controlling interest 19,820,000 19,820,000 19,820,000
Total shareholders’ equity 2,366,148,075,333 2,192,290,427,691 1,996,683,030,904
Total Liabilities and Shareholders’ Equity ￦ 11,520,877,691,883 ￦ 11,252,263,615,395 ￦ 10,851,933,715,810
(Concluded)
See accompanying notes to consolidated financial statements.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
FOR THE YEARS ENDED DECEMBER 31, 2013 AND 2012
(Unit: Korean won)
Year ended
December 31, 2013
Year ended
December 31, 2012
OPERATING REVENUE:
Card income (Notes 30, 33 and 35) ￦ 2,453,282,496,374 ￦ 2,388,278,853,242
Interest income (Notes 33 and 34) 20,566,269,302 22,593,511,595
Gain on disposal of financial assets AFS (Note 33) - -
Reversal of impairment loss on financial assets AFS 81,187,900 461,757,518
Dividend income 351,635,696 477,523,977
Reversal of provision for unused credit limits
(Note 18) - 781,111,756
Other operating revenue (Notes 2 and 36) 53,197,571,481 113,042,414,018
Total operating revenue 2,527,479,160,753 2,525,635,172,106
OPERATING EXPENSES:
Card expenses (Notes 30, 33 and 35) 1,028,249,651,605 1,043,710,631,004
Interest expenses (Notes 33 and 34) 312,928,664,959 343,398,755,949
General and administrative expenses
(Notes 25 and 30) 636,477,645,013 606,068,487,106
Securitization expenses 325,819,518 367,539,337
Bad debt expense and loss on disposal of loans 247,746,973,428 202,956,968,418
Transfer to provision for unused credit limits
(Note 18) 1,111,380,052 -
Other operating expenses (Notes 2 and 36) 80,714,349,715 91,937,747,576
Total operating expenses 2,307,554,484,290 2,288,440,129,390
OPERATING INCOME 219,924,676,463 237,195,042,716
NON-OPERATING INCOME (Notes 2 and 30):
Gain from sale of property and equipment 141,866,664 9,133,500
Reversal of impairment loss for intangible assets 11,000,000 -
Rental revenue (Note 30) 2,797,729,690 2,157,675,587
Miscellaneous gain 201,932,331 200,026,435
Total non-operating income 3,152,528,685 2,366,835,522
NON-OPERATING EXPENSES (Note 2):
Loss from sale of property and equipment 2,545,917,969 577,531,514
Impairment loss for intangible assets 37,049,470 512,947,720
Donations 1,720,970,527 1,920,539,994
Miscellaneous loss - 115,000,000
Total non-operating expenses 4,303,937,966 3,126,019,228
INCOME BEFORE INCOME TAX 218,773,267,182 236,435,859,010
INCOME TAX EXPENSE (Note 26) 55,563,634,256 42,137,263,592
INCOME FOR THE YEAR 163,209,632,926 194,298,595,418
(Continued)

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (CONTINUED)
(Unit: Korean won)
Year ended
December 31, 2013
Year ended
December 31, 2012
OTHER COMPREHENSIVE INCOME (LOSS) FOR THE
YEAR
Items not reclassified subsequently to profit or loss ￦ 3,989,251,358 ￦ (2,970,032,179)
Remeasurements of net defined benefit liability 5,278,288,527 (3,918,248,257)
Income tax effect (1,289,037,169) 948,216,078
Items reclassified subsequently to profit or loss 6,658,763,358 4,278,833,548
Cash flow hedging gains or losses 8,764,406,892 5,643,497,691
Income tax effect (2,105,643,534) (1,364,664,143)
Total other comprehensive income (loss) 10,648,014,716 1,308,801,369
TOTAL COMPREHENSIVE INCOME FOR THE YEAR 173,857,647,642 195,607,396,787
Net income attributable to:
Owners of the Company 163,209,632,926 194,298,595,418
Non-controlling interests - -
Total comprehensive income attributable to:
Owners of the Company 173,857,647,642 195,607,396,787
Non-controlling interests - -
Earnings per share (in Korean won per share) (Note 27)
Basic earnings per share ￦ 1,017 ￦ 1,211
Diluted earnings per share ￦ 1,017 ￦ 1,211
(Concluded)

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY
(Unit: Korean won)
Share
capital
Capital surplus Reserves
Attributable to
owners of the
Company
Non-
controlling
interests Total
Share
premium
Other
capital
Retained
earnings
Cash flow
hedging
reserves
Remeasurem
ents of the
net defined
benefit
liability
Balance at
January 1,
2012 ￦802,326,430,000 ￦ 45,399,364,539 ￦12,305,079,416 ￦ 1,148,396,655,980 ￦(11,764,319,031) ￦ - ￦ 1,996,663,210,904 ￦ 19,820,000 ￦ 1,996,683,030,904
Changes in
accounting
policy - - - 6,049,230,616 - (6,049,230,616) - -
Restated
balance 802,326,430,000 45,399,364,539 12,305,079,416 1,154,445,886,596 (11,764,319,031) (6,049,230,616) 1,996,663,210,904 19,820,000 1,996,683,030,904
Comprehensive
income (loss)
Net income - - - 194,298,595,418 - - 194,298,595,418 - 194,298,595,418
Other
comprehensi
ve income
(loss) - - - - 4,278,833,548 (2,970,032,179) 1,308,801,369 - 1,308,801,369
Balance at
December 31,
2012 802,326,430,000 45,399,364,539 12,305,079,416 1,348,744,482,014 (7,485,485,483) (9,019,262,795) 2,192,270,607,691 19,820,000 2,192,290,427,691
Balance at
January 1,
2013 802,326,430,000 45,399,364,539 12,305,079,416 1,348,744,482,014 (7,485,485,483) (9,019,262,795) 2,192,270,607,691 19,820,000 2,192,290,427,691
Comprehensive
income (loss)
Net income - - - 163,209,632,926 - - 163,209,632,926 - 163,209,632,926
Other
comprehensi
ve income
(loss) - - - - 6,658,763,358 3,989,251,358 10,648,014,716 - 10,648,014,716
Balance at
December 31,
2013 ￦802,326,430,000 ￦ 45,399,364,539 ￦12,305,079,416 ￦ 1,511,954,114,940 ￦ (826,722,125) ￦ (5,030,011,437) ￦ 2,366,128,255,333 ￦ 19,820,000 ￦ 2,366,148,075,333

CONSOLIDATED STATEMENTS OF CASH FLOWS
Years ended December 31,
2013 2012
(Unit: Korean won)
CASH FLOWS FROM OPERATING ACTIVITIES:
Income for the year ￦ 163,209,632,926 ￦ 194,298,595,418
Income tax expense 55,563,634,256 42,137,263,592
Interest income (20,566,269,302) (22,593,511,595)
Interest expense 312,928,664,959 343,398,755,949
Dividend received (351,635,696) (477,523,977)
Bad debt expense and loss on disposal of receivables 247,746,973,428 202,956,968,418
Retirement benefits 10,006,031,553 9,320,707,981
Depreciation 28,135,382,607 26,992,252,034
Amortization 15,934,213,569 14,180,876,300
Loss on foreign currency translation - 38,093,094
Loss on valuation of trading derivatives 10,533,333,291 55,633,000,000
Increase (decrease) in provision for unused credit limit 1,111,380,052 (781,111,756)
Increase (decrease) in provision for others 12,735,354,786 (3,764,609,716)
Loss from sale of property and equipment 2,545,917,969 577,531,514
Other operating losses 1,574,904,553 924,569,785
Impairment loss of intangible assets 37,049,470 512,947,720
Sales promotional expenses 18,362,974,301 34,842,719,771
Reversal of impairment loss of financial assets AFS (81,187,900) (461,757,518)
Gain on foreign currency translation (10,503,084,778) (55,663,248,513)
Amortization of present value discounts of card assets (20,029,481,150) (40,906,150,359)
Amortization of deferred origination fees of card assets (20,991,695,981) (18,129,500,265)
Gain from sale of property and equipment (141,866,664) (9,133,500)
Reversal of impairment loss for intangible assets (11,000,000) -
Other operating gains (140,912,653) -
Changes in working capital:
Increase in card assets (247,839,888,482) (513,584,929,632)
Decrease in other receivables - 500,000,000
Increase in other financial assets (8,872,081,850) (41,853,625,282)
Increase (decrease) in other non-financial assets (562,067,000) 8,425,805,126
Decrease in guarantee deposit 17,528,710,503 21,000,758,986
Decrease in derivative assets - 1,865,000,000
Decrease in retirement benefit obligations (3,836,009,470) (5,633,619,727)
Increase in plan asset (8,208,753,201) (13,726,405,314)
Decrease in derivative liabilities (8,507,666,797) (1,972,000,000)
Decrease in capital lease liabilities (1,154,236,823) (1,096,091,693)
Decrease (increase) in other financial liabilities (108,318,688,454) 168,017,357,285
Decrease (increase) in other non-financial liabilities (4,676,310,642) 49,965,461,450
Cash generated from operating activities
Interest received 20,852,490,398 24,109,712,867
Interest paid (287,912,166,505) (324,680,224,065)
Dividend received 351,635,696 477,523,977
Income tax paid (63,284,530,687) (76,794,968,277)
Net cash provided by operating activities 103,168,750,282 78,047,490,078
(Continued)

CONSOLIDATED STATEMENTS OF CASH FLOWS (CONTINUED)
Years ended December 31,
2013 2012
(Unit: Korean won)
CASH FLOWS FROM INVESTING ACTIVITIES:
Disposal of investment financial assets ￦ 81,187,900 ￦ 461,757,518
Disposal of property and equipment 183,243,052 30,217,356
Disposal of intangible assets 2,280,308,566 1,250,000,000
Net decrease (increase) in bank deposit (2,500,000) 2,500,000
Acquisition of property and equipment (40,826,493,302) (99,177,344,840)
Acquisition of intangible assets (67,168,908,441) (18,435,122,958)
Net cash used in investing activities (105,453,162,225) (115,867,992,924)
CASH FLOWS FROM FINANCING ACTIVITIES:
Increase in borrowings 4,705,000,000,000 7,680,000,000,000
Proceeds from issue of bonds payable 2,328,772,226,400 3,342,529,395,016
Repayment of borrowings (4,980,000,000,000) (7,782,500,000,000)
Repayment of bonds payable (1,877,579,836,190) (3,240,684,500,000)
Net cash provided by (used in) financing activities 176,192,390,210 (655,104,984)
NET INCREASE (DECREASE) IN CASH AND CASH
EQUIVALENTS 173,907,978,267 (38,475,607,830)
CASH AND CASH EQUIVALENTS, BEGINNING OF
YEAR 791,547,295,193 830,022,903,023
CASH AND CASH EQUIVALENTS, END OF YEAR ￦ 965,455,273,460 ￦ 791,547,295,193
(Concluded)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
AS OF AND FOR THE YEARS ENDED DECEMBER 31, 2013 AND 2012
1. GENERAL:
Hyundai Card Co., Ltd. (the “Company” or the “Parent”), which is a controlling company in accordance with
Korean International Financial Reporting Standards (“K-IFRS”) 1110, Consolidated Financial Statements, is
engaged in the credit card business under the Specialized Credit Financial Business Law of Korea. On June 15,
1995, the Parent acquired the credit card business of Korea Credit Circulation Co., Ltd. and on June 16, 1995,
Korean government granted permission to the Parent to engage in the credit card business.
As of December 31, 2013, the Parent has approximately 7.04 million card members, 2.07 million registered
merchants, and 167 marketing centers, branches and posts. Its headquarters is located in Yoido, Seoul.
As of December 31, 2013, the total common stock of the Parent is ￦802,326 million. The shareholders of the
Parent and their respective ownerships as of December 31, 2013 and 2012, are as follows:
Shareholder
December 31, 2013 December 31, 2012
Number of shares % of ownership Number of shares % of ownership
Hyundai Motor Co., Ltd. 59,301,937 36.96 50,572,187 31.52
Kia Motors Co., Ltd. 18,422,142 11.48 18,422,142 11.48
Hyundai Steel Co., Ltd. - 0.00 8,729,750 5.44
GE Capital Int’l Holdings 69,000,073 43.00 69,000,073 43.00
Hyundai Commercial Inc. 8,889,622 5.54 8,889,622 5.54
Others 4,851,512 3.02 4,851,512 3.02
Totals 160,465,286 100.00 160,465,286 100.00
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:
The Company maintains its official accounting records in the Korean won and prepares consolidated financial
statements in conformity with Korean statutory requirements and Korean International Financial Reporting
Standards (“K-IFRS”), in Korean language (Hangul). Accordingly, these consolidated financial statements are
intended for use by those who are informed about K-IFRS and Korean practices. Certain information included
in the Korean language financial statements, but not required for a fair presentation of the Company’s financial
position, operating results, changes in shareholders’ equity or cash flows, is not presented in the accompanying
consolidated financial statements.
(1) Basis of Preparation
The Parent and its subsidiaries (the “Consolidated Entity”) have adopted K-IFRS for the annual period
beginning on January 1, 2011.
The Consolidated Entity’s significant accounting policies applied for the accompanying consolidated financial
statements are the same as the policies applied for the preparation of the consolidated financial statements for
the year ended December 31, 2012, except for the effects from the introduction of new and revised accounting
standards or interpretations as described below.
The consolidated financial statements have been prepared on the historical cost basis except for certain non-
current assets and financial instruments that are measured at revalued amounts or fair values, as explained in
the accounting policies below. Historical cost is generally based on the fair value of the consideration given in
exchange for assets.

- 2 -
1) Accounting standards and interpretations that were newly applied for the year ended December 31, 2013,
and changes in the Company’s accounting policies are as follows:
K-IFRS 1001, Presentation of Financial Statements (Revised)
The amendments to K-IFRS 1001 require an entity to present items in the other comprehensive income section
to be grouped into those that will not be reclassified subsequently to profit or loss, and will be reclassified
subsequently to profit or loss when specific conditions are met. These amendments have an effect only on
presentation of consolidated financial statements and do not have an effect on the Consolidated Entity’s
financial position or operating results. The comparative consolidated financial statements are restated
retrospectively applying the amendments.
K-IFRS 1019, Employee Benefits (Revised)
The amendments to K-IFRS 1019 require the recognition of actuarial gains and losses in other comprehensive
income and hence eliminate the ‘corridor approach’ and ‘immediate recognition in profit and loss approach’
permitted under the previous version. Expected return on plan assets is measured using the discount rate used in
measuring defined benefit obligations instead of using an independent expected return and presented in net
interest on the net defined benefit liability. Meanwhile, the Consolidated Entity shall recognize past service
cost as an expense at the earlier date between when the plan amendment or curtailment occurs and when the
entity recognizes related restructuring costs or termination benefits. The Consolidated Entity applied the effect
of changes in accounting policy retrospectively and the comparative consolidated financial statements are
restated retrospectively applying the amendments.
K-IFRS 1107, Financial Instruments: Disclosures (Revised)
The amendments to K-IFRS 1107 increase the disclosure requirements to include information about offsetting
financial assets and financial liabilities. The revised accounting standards require disclosure of information on
conditional rights of setoff that are enforceable and exercisable only in the events mentioned in agreements
regardless of meeting some or all of the offsetting criteria in K-IFRS 1032. The Consolidated Entity discloses
the information comparatively (see Note 33 (2)).
K-IFRS 1110, Consolidated Financial Statements (Issued)
The standard supersedes K-IFRS 1027, Consolidated and Separate Financial Statements, and SIC-2012,
Consolidation – Special Purpose Entities. K-IFRS 1110 establishes a single source of guidance in the
application of definition of control. The standard states that an investor controls an investee when it is exposed,
or has rights, to variable returns from its involvement with the investee and has the ability to affect those
returns through its power over the investee. These enactments referred above do not have an effect on the
Consolidated Entity’s consolidated financial statements and disclosures.
K-IFRS 1111, Joint Arrangements (Issued)
K-IFRS 1111 deals with how a joint arrangement of which two or more parties have joint control should be
determined. Under K-IFRS 1111, joint arrangements are classified as joint operations or joint ventures,
depending on the rights and obligations of the parties to the arrangements. A joint operation is a joint
arrangement whereby the parties that have joint control of the arrangement (i.e., joint operators) have rights to
the assets, and obligations for the liabilities, relating to the arrangement. A joint venture is a joint arrangement
whereby the parties that have joint control of the arrangement (i.e., joint venturers) have rights to the net assets
of the arrangement. Under joint operations, a joint operator recognizes and measures assets, liabilities, related
revenues and expenses in relation to its interest in the arrangement. Under joint ventures, a joint venturer
recognizes an investment and accounts for that investment using the equity method. These enactments referred
above do not have an effect on the Consolidated Entity’s consolidated financial statements and disclosures.

- 3 -
K-IFRS 1112, Disclosures of Interests in Other Entities (Issued)
K-IFRS 1112 improves disclosures of reporting entities that have an interest in a subsidiary, a joint
arrangement, an associate or unconsolidated structured entity. The standard requires an entity to disclose the
nature of, and risks associated with, its interests in other entities and the effects of those interests on its
financial position, financial performance and cash flows. The Consolidated Entity discloses the information on
interests in subsidiaries (see Note 4).
K-IFRS 1113, Fair Value Measurements (Issued)
K-IFRS 1113 establishes a single source of guidance for fair value measurements and disclosures about fair
value measurements. The standard defines fair value, establishes a framework for measuring fair value and
requires disclosures about fair value measurements. The standard defines fair value as the price that would be
received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at
the measurement date (i.e., an exit price). When measuring fair value, an entity uses the assumptions that
market participants would use when pricing the asset or liability. The standard explains that a fair value
measurement requires an entity to determine the particular asset or liability being measured, the market in
which an orderly transaction would take place for the asset and liability and the appropriate valuation
techniques to use when measuring fair value. Also, the standard requires wider disclosures about fair value
measurements. The Consolidated Entity discloses the additional information about fair value measurements
(see Note 33 (4), (5)).
The effects on the consolidated statement of financial position and the consolidated statement of
comprehensive income by accounting standards and interpretations that were newly applied for the year ended
December 31, 2013, and changes in the Consolidated Entity’s accounting policies are as follows:
Consolidated statement of financial position
As of December 31, 2012
Before changes After changes
Share capital and capital surplus ￦ 860,030,873,955 ￦ 860,030,873,955
Retained earnings 1,339,725,219,219 1,348,744,482,014
Reserve (7,485,485,483) (16,504,748,278)
Non-controlling interests 19,820,000 19,820,000
￦ 2,192,290,427,691 ￦ 2,192,290,427,691
As of January 1, 2012
Share capital and capital surplus ￦ 860,030,873,955 ￦ 860,030,873,955
Retained earnings 1,148,396,655,980 1,154,445,886,596
Reserve (11,764,319,031) (17,813,549,647)
Non-controlling interests 19,820,000 19,820,000
￦ 1,996,683,030,904 ￦ 1,996,683,030,904

- 4 -
Consolidated statement of comprehensive income
Year ended December 31, 2012
Operating income ￦ 233,276,794,459 ￦ 237,195,042,716
Non-operating income 2,366,835,522 2,366,835,522
Non-operating expenses 3,126,019,228 3,126,019,228
Income before income tax expenses 232,517,610,753 236,435,859,010
Income tax expenses 41,189,047,514 42,137,263,592
Net income for the period 191,328,563,239 194,298,595,418
Other comprehensive income 4,278,833,548 1,308,801,369
Items not reclassified subsequently to
profit or loss - (2,970,032,179)
Remeasurements of the net defined
benefit liability - (3,918,248,257)
Income tax effect - 948,216,078
Items reclassified subsequently to profit
or loss 4,278,833,548 4,278,833,548
Cash flow hedging gains or losses 5,643,497,691 5,643,497,691
Income tax effect (1,364,664,143) (1,364,664,143)
Total comprehensive income for the period ￦ 195,607,396,787 ￦ 195,607,396,787
The list above does not include some other amendments such as the amendments to K-IFRS 1032 relating to
‘Tax effects of the distribution on the equity instruments holders’ that are newly adopted from the current year.
But the enactments referred above do not have any significant effect on the Consolidated Entity’s consolidated
financial statements and disclosures.
2) The Consolidated Entity has not applied or adopted earlier the following new and revised K-IFRSs that
have been issued, but are not yet effective:
K-IFRS 1032, Financial Instruments: Presentation (Revised)
The amendments to K-IFRS 1032 clarify existing application issue relating to the offset of financial assets and
financial liabilities requirements. The Consolidated Entity’s right of setoff must not be contingent upon any
future events but enforceable anytime during the contract period in all of the circumstances — in the event of
default, insolvency or bankruptcy of the entity or the counterparties, as well as in the ordinary course of
business. The amendments to K-IFRS 1032 are effective for annual periods beginning on or after January 1,
2014.
K-IFRS 1039, Financial Instruments: Recognition and Measurement (Revised)
The amendment to K-IFRS 1039 allows the continuation of hedge accounting when a derivative is novated to a
clearing counterparty or entity acting in a similar capacity and certain conditions are met. The amendment to K-
IFRS 1039 is effective for annual periods beginning on or after January 1, 2014.
K-IFRS 1110, 1112, and 1027, Investment Entities (Revised)
The amendments introduce an exception to the principle under K-IFRS 1110 that all subsidiaries shall be
consolidated and require a reporting entity that meets the definition of an investment entity not to consolidate
its subsidiaries but instead to measure its subsidiaries at fair value through profit or loss (FVTPL) in its
consolidated and separate financial statements. In addition, consequential amendments have been made to K-
IFRS 1112 and K-IFRS 1027 to introduce new disclosure requirements for investment entities. The investment
entities amendments are effective for annual periods beginning on or after January 1, 2014.
The list above does not include some other amendments such as the amendments to K-IFRS 1036 relating to
‘Recoverable amount disclosures for non-financial assets’ that are effective January 1, 2014, with earlier
application permitted. The Consolidated Entity does not anticipate that these amendments referred above will
have a significant effect on the Consolidated Entity’s consolidated financial statements and disclosures.

- 5 -
Meanwhile, the Consolidated Entity’s consolidated financial statements of 2013 were approved by the Board of
Directors, and the approval date for publication is on February 27, 2014.
(2) Significant Accounting Policies
1) Basis of Consolidation
The consolidated financial statements incorporate the financial statements of the Company and entities
(including structured entities) controlled by the Parent (and its subsidiaries). Control is achieved where the
Company 1) has the power over the investee; 2) is exposed, or has rights, to variable returns from its
involvement with the investee; and 3) has the ability to use its power to affect its returns. The Company
reassesses whether or not it controls an investee if facts and circumstances indicate that there are changes to
one or more of the three elements of control listed above.
When the Company has less than a majority of the voting rights of an investee, it has power over the investee
when the voting rights are sufficient to give it the practical ability to direct the relevant activities of the investee
unilaterally. The Company considers all relevant facts and circumstances in assessing whether or not the
Company’s voting rights in an investee are sufficient to give it power, including:
• the size of the Company’s holding of voting rights relative to the size and dispersion of holdings of the other
vote holders;
• potential voting rights held by the Company, other vote holders or other parties;
• rights arising from other contractual arrangements; and
• any additional facts and circumstances that indicate that the Company has, or does not have, the current
ability to direct the relevant activities at the time that decisions need to be made, including voting patterns at
previous shareholders’ meetings.
Income and expenses of subsidiaries acquired or disposed of during the year are included in the consolidated
statement of comprehensive income from the effective date of acquisition and up to the effective date of
disposal, as appropriate. Carrying amounts of the non-controlling interests in subsidiaries are adjusted by the
changes in the proportion of the equity held by non-controlling interests after initial acquisition of non-
controlling interests. Total comprehensive income of subsidiaries is attributed to the owners of the Company
and to the non-controlling interests even if this results in the non-controlling interests having a deficit balance.
When necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting
policies in line with those used by the Company.
All intragroup transactions, balances, income and expenses are eliminated in full on consolidation.
Changes in the Company’s ownership interests in subsidiaries without loss of control are accounted for as
equity transactions. The carrying amounts of the Company’s interests and the non-controlling interests are
adjusted to reflect the changes in their relative interests in the subsidiaries. Any difference between the amount
by which the non-controlling interests are adjusted and the fair value of the consideration paid or received is
recognized directly in equity and attributed to the owners of the Company.
When the Parent loses control of a subsidiary, the profit or loss on disposal is calculated as the difference
between (i) the aggregate of the fair value of the consideration received and the fair value of any retained
interest and (ii) the previous carrying amount of the assets (including goodwill), and liabilities of the subsidiary
and any non-controlling interests. When assets of the subsidiary are carried at revalued amounts or fair values
and the related cumulative gain or loss has been recognized in other comprehensive income and accumulated in
equity, the amounts previously recognized in other comprehensive income and accumulated in equity are
accounted for as if the Parent had directly disposed of the relevant assets (i.e., reclassified to profit or loss or
transferred directly to retained earnings). The fair value of any investment retained in the former subsidiary at
the date when control is lost is recognized as the fair value on initial recognition for subsequent accounting
under K-IFRS 1039, Financial Instruments: Recognition and Measurement, or, when applicable, the cost on
initial recognition of an investment in an associate or a jointly controlled entity.

- 6 -
2) Card assets
Card assets are amounts due from customers for services performed in the ordinary course of business. Card
assets are initially measured at a fair value, including direct transaction cost; thereafter, it is measured at
amortized cost using the effective interest rate method except for the financial assets classified as at FVTPL.
① Card Receivables
The Consolidated Entity records card receivables when its cardholders make purchases from domestic and
foreign merchants, and when cardholders of MasterCard International, Visa International and Diners Club
International make purchases from domestic merchants. Commission from merchants for advance payments,
and commission from cardholders for installment payments and cash advances are recognized as revenue on an
accrual basis. Card receivables with non-interest-bearing installment payment are initially recognized at fair
value using a discounted cash flow. Since interest rate and other factors that are considered for calculating the
discounted cash flow of interest-bearing installment payments are different than those for non-interest-bearing
installment payment, the Consolidated Entity independently determines the discount rates for non-interest-
bearing installment payments with objective and reasonable method.
② Cash Advances
Cash advance service allows cardholders to withdraw cash up to certain limits depending on card members’
credit rating in accordance with the Specialized Credit Financial Business Law. Fees related to cash advances
are charged on the payment date with a specific percentage of service charges and interest income is accrued on
a daily basis until repayment of cash advance.
③ Card Loans
The Consolidated Entity extends the card loans to its cardholders in accordance with the Specialized Credit
Financial Business Law. Commission incomes are accrued on a daily basis based on a constant rate per
cardholders’ credit rate until repayments of card loans.
3) Financial assets
A financial asset is recognized when the Consolidated Entity becomes a party to the contract and at initial
recognition. A financial asset, excluding a financial asset at FVTPL, is measured at its fair value plus or minus,
transaction costs that are directly attributable to the acquisition of the financial asset. Otherwise, the transaction
cost that is directly attributable to the acquisition of the financial asset at FVTPL is recognized in profit or loss
immediately when it arises.
A regular-way purchase and sale of financial assets is recognized and derecognized at trade date. It is a
purchase or sale of a financial asset under a contract whose terms require delivery of the asset within the time
frame established generally by regulation or convention in the marketplace concerned.
Financial assets are classified into the following specified categories: financial assets at FVTPL, held-to-
maturity (“HTM”), AFS and loans and receivables. The classification depends on the nature and purpose of the
financial assets and is determined at the time of initial recognition.
① Effective interest rate method
The effective interest rate method is used for calculating the amortized cost of a debt instrument and allocating
interest income over the relevant period. The effective interest rate is the discounted rate used to estimate the
net carrying amount of future cash receipts (including all fees and points paid or received that form an integral
part of the effective interest rate, transaction costs and other premiums or discounts) throughout the expected
life of the debt instrument, or, where appropriate, a shorter period,
Interest income for debt instruments except for those financial assets classified as at FVTPL is recognized
using an effective interest rate method.

- 7 -
② Financial assets at FVTPL
Financial assets at FVTPL include financial assets held for trading or financial assets designated as at FVTPL
upon initial recognition. A financial asset that is acquired or incurred principally for the purpose of selling or
repurchasing in the near term and all derivatives including embedded derivatives bifurcated from host contract
(except for a derivative that is a designated and effective hedging instrument) are classified as held for trading.
Financial assets at FVTPL are measured at fair value and the change in value is recognized in income (loss) for
the period.
A financial asset is classified as held for trading if:
• it has been acquired principally for the purpose of selling in the near term; or
• on initial recognition, it is part of a portfolio of identified financial instruments that the Company manages
together and has a recent actual pattern of short-term profit-taking; or
• it is a derivative that is not designated and effective as a hedging instrument.
A financial asset other than a financial asset held for trading may be designated as at FVTPL upon initial
recognition if:
• such designation eliminates or significantly reduces a measurement or recognition inconsistency that would
otherwise arise; or
• the financial asset forms part of a group of financial assets or financial liabilities or both, which is managed and
its performance is evaluated on a fair value basis, in accordance with the Consolidated Entity’s documented
risk management or investment strategy, and information about the grouping is provided internally on that
basis; or
• it forms part of a contract containing one or more embedded derivatives, and K-IFRS 1039, Financial
Instruments: Recognition and Measurement, permits the entire combined contract (asset or liability) to be
designated as at FVTPL.
Financial assets at FVTPL are stated at fair value, and any gains or losses arising on remeasurement are
recognized in income (loss) for the period.
③ HTM investments
Non-derivative financial assets with fixed or determinable payments and fixed maturity dates that the
Consolidated Entity has the positive intent and ability to hold to maturity are classified as HTM investments.
HTM investments are measured at amortized cost using the effective interest rate method less any impairment,
with revenue recognized on an effective interest rate method basis.
④ AFS financial assets
Non-derivative financial assets that are not classified as at HTM, held for trading, designated as at FVTPL, or
loans and receivables are classified as at financial assets AFS.
Financial assets AFS are subsequently measured at fair value. Gains and losses arising from changes in fair
value are recognized and accumulated in other comprehensive income, with the exception of interest calculated
using the effective interest rate method and foreign exchange gains and losses on monetary AFS financial
assets, which are recognized in income (loss) for the period. Where the AFS financial assets are disposed of or
are determined to be impaired, the cumulative gains or losses previously accumulated in the other
comprehensive income are recognized income (loss) for the period.
Dividends from AFS equity instruments are recognized in income (loss) for the period when the Consolidated
Entity’s right to receive payment of the dividends is established.
The AFS investments in equity instruments that do not have a quoted price in an active market for an identical
instrument and their fair value are not reliably measurable and derivative assets that are linked to those
investments and must be settled by delivery of such an equity instrument are measured at cost, net of identified
impairment losses.

- 8 -
⑤ Loans and receivables
Trade receivables, loans, and other receivables that have fixed or determinable payments that are not quoted in
an active market are classified as loans and receivables. Loans and receivables are measured at amortized cost
using the effective interest rate method, less any impairment. Interest income is recognized by applying the
effective interest rate, except for short-term receivables when the effects of discount would be immaterial.
⑥ Impairment of financial assets
Financial assets, other than those at FVTPL, are assessed for indicators of impairment at the end of each
reporting period. Financial assets are considered to be impaired when there is objective evidence that, as a
result of one or more events that occurred after the initial recognition of the financial asset, the estimated future
cash flows of the investment have been affected.
For listed and unlisted equity investments classified as AFS, a significant or prolonged decline in the fair value
of the security below its cost is considered to be objective evidence of impairment.
For all financial assets classified as AFS, objective evidence of impairment could include:
• significant financial difficulty of the issuer or counterparty;
• default or delinquency in interest or principal payments;
• it becoming probable that the borrower will enter into bankruptcy or financial reorganization; or
• an active market for financial assets is not available due to financial difficulties.
For certain categories of financial assets, such as card receivables, assets that are assessed not to be impaired
individually are, in addition, assessed for impairment on a collective basis. Objective evidence of impairment
for a portfolio of receivables could include the Consolidated Entity’s past experience of collecting payments, an
increase in the number of delayed payments in the portfolio exceeding the average credit period, as well as
observable changes in national or local economic conditions that correlate with default on receivables.
For financial assets carried at amortized cost, the amount of the impairment loss recognized is the difference
between the asset’s carrying amount and the present value of estimated future cash flows, discounted at the
financial asset’s original effective interest rate.
For financial assets measured at amortized cost, the amount of the impairment is recognized as the difference
between the carrying amount of the asset and current value of estimated future cash flows discounted by similar
to the current market rate. The impairment is not reversed in subsequent periods.
When an AFS financial asset is considered to be impaired, cumulative gains or losses previously recognized in
other comprehensive income are recognized in income (loss) for the period.
For financial assets measured at amortized cost, if, in a subsequent period, the amount of the impairment loss
decreases and the decrease can be related objectively to an event occurring after the impairment was recognized,
the previously recognized impairment loss is reversed through income (loss) for the period to the extent that the
carrying amount of the investment at the date the impairment is reversed does not exceed what the amortized
cost would have been had the impairment not been recognized.
In respect of AFS equity instruments, impairment losses previously recognized in income (loss) for the period
are not reversed. Any increase in fair value subsequent to an impairment loss is recognized in other
comprehensive income. In respect of AFS debt instruments, in a subsequent period, the amount of the
impairment loss increases and the increase can be related objectively to an event occurring after the impairment
was recognized, and the previously recognized impairment loss is reversed through income (loss) for the period.

- 9 -
⑦ Derecognition of financial assets
The Consolidated Entity derecognizes a financial asset only when the contractual rights to the cash flows from
the asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership
of the asset to another entity. If the Consolidated Entity neither transfers or retains substantially all the risks and
rewards of ownership but continues to control the transferred asset, the Consolidated Entity recognizes its
retained interest in the asset and an associated liability for amounts it may have to pay. If the Consolidated
Entity retains substantially all the risks and rewards of ownership of a transferred financial asset, the
Consolidated Entity continues to recognize the financial asset and also recognizes a collateralized borrowing
for the proceeds received.
If the Consolidated Entity derecognizes the entire financial asset, the difference between total received amount
plus the sum of cumulative income recognized in other comprehensive income and the book value of the asset
is recognized in income (loss) for the period.
If the Consolidated Entity does not derecognize the entire financial asset (for example, the Consolidated Entity
holds either an option to repurchase a certain portion of the asset or remaining equity, which does not allow the
Consolidated Entity to hold the most of the risks and benefits from the financial asset or the Consolidated
Entity controls assets), the Consolidated Entity divides the book value of financial assets into a recognized part
and a unrecognized part in accordance with relative fair value of each portion. The difference between total
received amount for derecognized portion of the asset plus the sum of cumulative income recognized in other
comprehensive income and the book value of the asset is recognized in income (loss) for the period.
Cumulative income recognized in other comprehensive income is divided into a recognized part and a
unrecognized part in accordance with relative fair value of each portion.
4) Property, plant and equipment
Property, plant and equipment are stated at cost less subsequent accumulated depreciation and accumulated
impairment losses. The cost of an item of property and equipment is directly attributable to their purchase or
construction, which includes any costs directly attributable to bringing the asset to the location and condition
necessary for it to be capable of operating in the manner intended by management. It also includes the initial
estimate of the costs of dismantling and removing the item and restoring the site on which it is located.
Subsequent costs are recognized in the carrying amount of an asset or as a separate asset if it is probable that
future economic benefits associated with the assets will flow into the Consolidated Entity and the cost of an
asset can be measurable. Routine maintenance and repairs are expensed as incurred.
The Consolidated Entity does not depreciate land. Depreciation expense is computed using the straight-line
method based on the estimated useful lives of the assets as follows:
Estimated useful lives
Building 40 years
Fixtures and equipment 4 years
Vehicles 4 years
Each part of property and equipment with a cost that is significant in relation to the total cost is depreciated
separately.
The Consolidated Entity assesses the depreciation method, the estimated useful lives and residual values of
property and equipment at the end of each reporting period. If expectations differ from previous estimates, the
changes are accounted for as a change in an accounting estimate.
When future economic benefits are not expected through the use or disposition of property and equipment, the
Consolidated Entity removes the book value of the assets from the consolidated statements of financial position.
The difference between the amounts received from the disposal and the book values of assets is recognized as
income (loss) of the period when the assets are removed.

- 10 -
5) Lease
A lease is classified as a finance lease whenever the terms of the lease transfer substantially all the risks and
rewards of ownership to the lessee. All other leases are classified as operating leases.
The Consolidated Entity recognizes the lesser of the current value of minimum lease payment and the fair value
of lease assets as capital lease assets and capital lease liabilities.
Lease payments are apportioned to each period between interest expense and the reduction of lease liabilities to
produce a constant periodic rate of interest on the remaining balance of lease liability. Financial cost except for
certain qualifying assets, in accordance with the Consolidated Entity’s accounting policies is recognized
immediately as an expense in the period. Any adjustments to lease payment are recognized as cost when it
occurred.
6) Intangible assets
① Intangible assets acquired separately
Intangible assets with finite useful lives that are acquired separately are carried at cost less accumulated
amortization and accumulated impairment losses. Amortization is recognized on a straight-line basis over their
estimated useful lives. The estimated useful lives and amortization method are reviewed at the end of each
reporting period, with the effect of any changes in estimate being accounted for on a prospective basis.
Intangible assets with indefinite useful lives that are acquired separately are carried at cost less accumulated
impairment losses.
② Internally generated intangible assets - research and development expenditure
Expenditure on research activities is recognized as an expense in the period in which it is incurred.
Expenditure arising from development (or from the development phase of an internal project) is recognized as
an intangible asset if, only if, the development project is designed to produce new or substantially improved
products, and the Consolidated Entity can demonstrate the technical and economic feasibility and measure
reliably the resources attributable to the intangible asset during its development.
The amount initially recognized for internally generated intangible assets is the sum of the expenditure incurred
from the date when the intangible asset first meets the recognition criteria listed above. Where no internally
generated intangible asset can be recognized, development expenditure is recognized in income (loss) for the
period when it is incurred.
Subsequent to initial recognition, internally generated intangible assets are reported at cost less accumulated
amortization and accumulated impairment losses, on the same basis as intangible assets that are acquired
separately.
③ Intangible assets acquired in a business combination
Intangible assets that are acquired in a business combination are recognized separately from goodwill and are
initially recognized at their fair value at the acquisition date (which is regarded as their deemed cost).
Subsequent to initial recognition, intangible assets acquired in a business combination are reported at cost less
accumulated amortization and accumulated impairment losses, on the same basis as intangible assets that are
acquired separately.

- 11 -
④ Disposal of intangible assets
If future economic benefits are not expected through the use or disposition of the intangible assets, the
Consolidated Entity removes the book value of the assets from the consolidated financial statements. The
difference between the amounts received from the disposal of intangible assets and the book values of the
assets are recognized as income (loss) of the period when the assets are removed.
7) Impairment of tangible and intangible assets other than goodwill
At the end of each reporting period, the Consolidated Entity reviews the carrying amounts of its tangible and
intangible assets to determine whether there is any indication that those assets have suffered an impairment loss.
If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of
the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset,
the Consolidated Entity estimates the recoverable amount of the cash-generating unit to which the asset belongs.
Where a reasonable and consistent basis of allocation can be identified, assets for which recoverable amounts
are not individually estimated are also allocated to individual cash-generating units, or otherwise they are
allocated to the smallest group of cash-generating units for which a reasonable and consistent allocation basis
can be identified.
Intangible assets with indefinite useful lives and intangible assets not yet available for use are tested for
impairment at least annually, and whenever there is an indication that the assets may be impaired.
Recoverable amounts are the higher of fair value less costs to sell and value in use. In assessing value in use,
the estimated future cash flows are discounted to their present value using a pretax discount rate that reflects
current market assessments of the time value of money and the risks specific to the asset for which the
estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or a cash-generating unit) is estimated to be less than its carrying amount,
the carrying amount of the asset (or the cash-generating unit) is reduced to its recoverable amount. An
impairment loss is recognized immediately in income (loss) for the period.
If impairment recognized in prior periods is reversed, the book value of the individual assets (or cash-
generating unit) is the smaller of the carrying amount of the recoverable amount and the book value that the
impairment would not have recognized in prior periods and the reversal of impairment loss is recognized
immediately in income (loss) for the period at the time.
8) Provisions
Provisions are recognized when the Consolidated Entity has a present obligation (legal or constructive) as a
result of a past event, it is probable that the Consolidated Entity will be required to settle the obligation and the
amount of the obligation is reliably estimated.
The amounts recognized as a provision are the best estimate of the consideration required to settle the present
obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the
obligation. When a provision is measured using the cash flows estimated to settle the present obligation, its
carrying amount is the present value of those cash flows (where the effect of the time value of money is
material).
When some or all of the economic benefits required to settle a provision are expected to be recovered from a
third party, a receivable is recognized as an asset if it is virtually certain that reimbursement will be received
and the amount of the receivable can be measured reliably.
At the end of each reporting period, the remaining provision balance is reviewed and assessed to determine if
the current best estimate is being recognized. If the existence of an obligation to transfer economic benefit is no
longer probable, the related provision is reversed during the period.

- 12 -
9) Financial liabilities and equity instruments
① Classification as debt or equity
Debt and equity instruments are classified as either financial liabilities or equity in accordance with the
substance of the contractual arrangement and the definition of financial liabilities and equity instruments.
② Equity instruments
An equity instrument is any contract that evidences a residual interest in the assets of an entity after deducting
all of its liabilities. Equity instruments issued by the Company are recognized at the proceeds received, net of
direct issue costs.
Treasury shares transactions are deducted directly from equity. Profit or loss arising from purchases and sales,
issuances, and incinerations of treasury shares are not recognized in income (loss) for the period.
③ Compound instruments
The component parts of compound instruments issued by the Consolidated Entity are allocated into financial
liabilities and equity in accordance with the definition of the financial asset and liability. Convertible option
that can be settled by exchanging financial asset, such as fixed amount of cash for the fixed number of treasury
shares, is equity instruments.
At the date of issue, the fair value of the liability component is estimated using the prevailing market interest
rate for a similar non-convertible instrument. This amount is recorded as a liability with an amortized cost basis
using the effective interest rate method until extinguished upon conversion or at the instrument’s maturity date.
The equity component is determined by deducting the amounts of the liability component from the fair value of
the compound instrument as a whole. This is recognized and included in equity, net of income tax effects, and
is not subsequently remeasured.
④ Financial liabilities
A financial liability is recognized when the Consolidated Entity becomes a party to the contract and at initial
recognition. A financial liability other than financial liability at FVTPL is measured at its fair value plus or
minus transaction costs that are directly attributable to the issue of the financial liability. Otherwise, the
transaction cost that is directly attributable to the issue of the financial liability at FVTPL is recognized in
income (loss) for the period immediately when it arises.
Financial liabilities are classified as either financial liabilities at FVTPL or other financial liabilities.
⑤ Other financial liabilities
Other financial liabilities are subsequently measured at amortized cost using the effective interest rate method,
with interest expense recognized on an effective interest rate method.
The effective interest rate method is used for calculating the amortized cost of a financial liability and of
allocating interest expense over the relevant period. The effective interest rate is discounted rate used to
estimate the net carrying value of future cash payment, including commission and points to be paid or received,
transaction cost and other premium or discounts throughout the expected life of financial liability, or, where
appropriate, a shorter period.
⑥ Derecognition of financial liabilities
The Consolidated Entity derecognizes financial liabilities when, and only when, the Consolidated Entity’s
obligations are discharged, canceled or expired. On derecognition of a financial liability in its entirety, the
difference between the carrying amount and the consideration received is recognized in income (loss) for the
period.

- 13 -
10) Derivative instruments
The Consolidated Entity enters into a variety of derivative contracts, including interest rate swaps and currency
swaps, to manage its exposure to interest rate and foreign exchange rate risk.
Derivatives are initially recognized at fair value at the date the derivative contract is entered into and are
subsequently remeasured to their fair value at the end of each reporting period. Gain or loss from the change in
fair value is recognized in income (loss) for the period immediately unless the derivative is designated and
effective as a hedging instrument; in such case, the timing of the recognition in profit or loss depends on the
nature of the hedge relationship.
A derivative with a positive fair value is recognized as a financial asset, and a derivative with a negative fair
value is recognized as a financial liability.
① Embedded derivatives
When economic characteristics and risks of an embedded derivative are not closely related to the host contract
and a separate instrument with the same terms as the embedded derivative would meet the definition of a
derivative and the changes in fair value of hybrid contract are not recognized in income (loss) for the period,
the Consolidated Entity accounts for the embedded derivative separately from the host contract.
② Hedge accounting
The Consolidated Entity designates certain derivative instruments as cash flow hedges.
At the inception of the hedge relationship, the Consolidated Entity documents the relationship between the
hedging instrument and the hedged item, along with its risk management objectives and its strategy for
undertaking various hedge transactions. Furthermore, at the inception of the hedge and on an ongoing basis, the
Consolidated Entity documents whether the hedging instrument is highly effective in offsetting changes in cash
flows of the hedged item.
③ Cash flow hedges
The effective portion of changes in the fair value of derivatives that are designated and qualify as cash flow
hedges is recognized in other comprehensive income. The gain or loss relating to the ineffective portion is
recognized immediately in income (loss) for the period, and is included in the other operating revenue or
expenses line item.
Amounts previously recognized in other comprehensive income and accumulated in equity are reclassified to
income (loss) for the period when the hedged item is recognized in income (loss) for the period.
Hedge accounting is discontinued when the Consolidated Entity revokes the hedging relationship, when the
hedging instrument expires or is sold, terminated, or exercised, or it no longer qualifies for hedge accounting.
Any gain or loss accumulated in equity at that time remains in equity and is recognized when the forecasted
transaction is ultimately recognized in profit or loss. When a forecasted transaction is no longer expected to
occur, the gain or loss accumulated in equity is recognized immediately in profit or loss.
11) Share capital
Incremental costs directly attributable to the issue of new shares or options are shown in equity as a deduction,
net of tax, from the proceeds. Stock issuance costs are incremental costs directly attributable to the issue of
equity instruments and are deducted on the initial recognition of the equity instruments.
Where the Parent or its subsidiary purchases any shares of the Parent or its subsidiary, the consideration paid is
deducted from shareholders’ equity as treasury shares until they are canceled. Where such shares are
subsequently sold or reissued, any consideration received is included in shareholders’ equity.

- 14 -
12) Commission revenue
① Fees that are a part of the financial instruments’ effective interest rate
Fees that are a part of the effective interest rate of a financial instrument are treated as an adjustment to the
effective interest rate. Such fees include compensation for activities such as evaluating the borrower’s financial
condition; evaluating and recording guarantees, collateral and other security arrangements; negotiating the
terms of the instrument; preparing and processing documents and closing the transaction as well as origination
fees received on issuing financial liabilities measured at amortized cost. These fees are deferred and recognized
as an adjustment to the effective interest rate. However, in case the financial instrument is classified as a
financial asset at FVTPL, the relevant fee is recognized as revenue when the instrument is initially recognized.
② Commission from significant act performed
The recognition of revenue is postponed until the significant act is executed.
③ Unearned revenue from point programs (customer loyalty program)
The Consolidated Entity operates customer loyalty program to provide customers with incentives to buy their
goods or services. If a customer buys goods or services, the Consolidated Entity grants the customer awards
credits (often described as ‘points’). The customer can redeem the award credits for awards such as free or
discounted goods or services. The awards credits are accounted separately as identifiable component of the
sales transaction(s) in which they are granted (the ‘initial sales’). The fair value of the consideration received
or receivable in respect of the initial sale shall be allocated between the award credits and the other
components of the sale.
If the Consolidated Entity supplies the awards itself, it shall recognize the consideration allocated to award
credits as revenue when award credits are redeemed and it fulfills its obligation to supply awards. The amount
of revenue recognized shall be based on the number of award credits that have been redeemed in exchange for
awards, related to the total number expected to be redeemed.
If the third party supplies the awards, the Consolidated Entity shall assess whether it is collecting the
consideration allocated to the award credits on its own account (as the principal in the transaction ) or on behalf
of the third party (as agent for the third party). The amount of revenue recognized shall be net amount retained
on its own account.
13) Interest income and expense
Using the effective interest rate method, the Consolidated Entity recognizes interest income and expense in
the consolidated statements of comprehensive income. Effective interest rate method calculates the amortized
cost of financial assets or liabilities and allocates interest income or expense over the relevant period. The
effective interest rate discounts the expected future cash in and out through the expected life of financial
instruments or, if appropriate, through shorter period, to net carrying amount of financial assets or liabilities.
When calculating the effective interest rate, the Consolidated Entity estimates future cash flows considering
all contractual financial instruments except the loss on future credit risk. Also, effective interest rate
calculation includes redemption costs, points (part of the effective interest rate) that are paid or earned
between contracting parties, transaction costs and other premiums or discounts. It is assumed that the cash
flows and the expected existing period of aggregation of homogeneous financial instruments are reliably
estimable. However, in the exception that cash flow of financial instruments (or aggregation of homogeneous
financial instruments) or the estimated maturity is not reliably estimable, the effective interest rate is
calculated using the contractual terms of cash flows for the entire contract period.
If financial instruments or aggregation of homogeneous financial instruments are impaired, the subsequent
interest income is recognized based on the discount rate used in discounting future cash flows for the purpose
of the measurement of impairments.

- 15 -
14) Dividend revenue
Dividend income from investments is recognized when the shareholder’s right to receive the payment of
dividends has been established.
15) Foreign currency translation
The individual financial statements of the consolidated entities are presented in the currency of the primary
economic environment in which the Company operates (its functional currency). For the purpose of the
consolidated financial statements, the results of operations and financial position of each entity are expressed in
Korean won, which is the functional currency of the Parent and the presentation currency for the consolidated
financial statements.
In preparing the financial statements of the individual entities, transactions in currencies other than the entity’s
functional currency (foreign currencies) are recognized at the rates of exchange prevailing at the date of the
transactions. At the end of each reporting period, monetary items denominated in foreign currencies are
retranslated at the rates prevailing at that date. Non-monetary items carried at fair value that are denominated in
foreign currencies are retranslated at the rates prevailing at the date when the fair value was determined. Non-
monetary items that are measured in terms of historical cost in a foreign currency are not retranslated.
Exchange differences are recognized in income (loss) for the period in which they arise, except for exchange
differences on transactions entered into in order to hedge certain foreign currency risks. See Note 2 (10) above
for hedging accounting policies.
16) Retirement benefit costs
Contributions to defined contribution plans are recognized as an expense when employees have rendered
service entitling them to the contributions.
For defined benefit plans, the cost of providing benefits is determined using the projected unit credit method,
with actuarial valuations being carried out at the end of each reporting period. The present value of defined
benefit obligations is determined by the discount rate that reflects the current rate of return on a high-quality
corporate bond (or, in countries where there is no deep market in such bonds, government bonds) of equivalent
term and currency to the plan liabilities.
Actuarial gains and losses are changes in the present value of the defined benefit obligation resulting from
experience adjustments (the effects of differences between the previous actuarial assumptions and what has
actually occurred) and the effects of changes in actuarial assumptions. Past service cost is recognized
immediately to the extent that the benefits are already vested and, otherwise, is amortized on a straight-line
basis over the average period until the benefits become vested.
The retirement benefit obligation recognized in the consolidated statements of financial position represents the
present value of the defined benefit obligation, as adjusted for unrecognized actuarial gains and losses and
unrecognized past service cost and as reduced by the fair value of plan assets. Any asset resulting from this
calculation is limited to unrecognized actuarial losses and past service cost, plus the present value of available
economic benefits of refunds and reductions in future contributions to the plan.
A liability for a termination benefit is recognized at the earlier of when the entity can no longer withdraw the
offer of the termination benefit or when the entity recognizes any related restructuring costs.
17) Taxation
Income tax consists of current tax and deferred tax.
① Current tax
The tax currently payable is based on taxable income for the period. Taxable income differs from income (loss)
before tax expenses as reported in the consolidated statement of comprehensive income because of items of
income or expense that are taxable or deductible in other periods. The Consolidated Entity’s liability for current
tax is calculated using tax rates that have been enacted or substantively enacted by the end of the reporting
period.

- 16 -
② Deferred tax
Deferred tax is recognized on temporary differences between the carrying amounts of assets and liabilities in
the consolidated financial statements and the corresponding tax bases used in the computation of taxable
income. Deferred tax liabilities are generally recognized for all taxable temporary differences. Deferred income
tax assets are generally recognized for all deductible temporary differences to the extent that it is probable that
taxable income will be available against which those deductible temporary differences can be utilized. Such
deferred tax assets and liabilities are not recognized if the taxable or deductible temporary difference arises
from goodwill or from the initial recognition (other than in a business combination) of other assets and
liabilities in a transaction that affects neither the taxable income (taxable deficit) nor the accounting income.
Deferred tax liabilities are recognized for taxable temporary differences associated with investments in
subsidiaries and associates and interests in joint ventures, except where the Consolidated Entity is able to
control the reversal of the temporary difference and it is probable that the temporary difference will not reverse
in the foreseeable future. Deferred tax assets arising from deductible temporary differences associated with
such investments and interests are only recognized to the extent that it is probable that there will be sufficient
taxable income against which the benefits of the temporary differences can be utilized and they are expected to
reverse in the foreseeable future.
The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the
extent it is no longer probable that sufficient taxable income will be available to allow all or part of the asset to
be recovered.
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the period in which
the liability is settled or the asset realized, based on tax rates (and tax laws) that have been enacted or
substantively enacted by the end of the reporting period. The measurement of deferred tax liabilities and assets
reflects the tax consequences that would follow from the manner in which the Consolidated Entity expects, at
the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.
The Consolidated Entity shall offset deferred tax assets and deferred tax liabilities if, and only if the
Consolidated Entity has a legally enforceable right to set off current tax assets against current tax liabilities and
the deferred tax assets and the deferred tax liabilities relate to income taxes levied by the same taxation
authority on either the same taxable entity or different taxable entities that intend either to settle current tax
liabilities and assets on a net basis or realize the assets and settle the liabilities simultaneously in each future
period in which significant amounts of deferred tax liabilities or assets are expected to be settled or recovered.
For the purpose of measuring deferred tax liabilities and deferred tax assets for investment properties that are
measured using the fair value model, the carrying amounts of such properties are presumed to be recovered
entirely through sale, unless the presumption is rebutted. The presumption is rebutted when the investment
property is depreciable and is held within a business model whose objective is to consume substantially all of
the economic benefits embodied in the investment properties over time, rather than through sale.
③ Current tax and deferred tax for the year
Current tax and deferred tax are recognized in profit or loss, except when they relate to items that are
recognized in other comprehensive income or directly in equity, in which case the current tax and deferred tax
are also recognized in other comprehensive income or directly in equity. Where current tax or deferred tax
arises from the initial accounting for a business combination, the tax effect is included in the accounting for the
business combination.
18) Earnings per share
Basic earnings per share is calculated by dividing net profit from the period available to common shareholders
by the weighted-average number of common shares outstanding during the year. Diluted earnings per share are
calculated using the weighted-average number of common shares outstanding, adjusted to include the
potentially dilutive effect of common equivalent shares outstanding.

- 17 -
19) Fair value
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly
transaction between market participants at the measurement date, regardless of whether that price is directly
observable or estimated using another valuation technique. In estimating the fair value of an asset or a liability,
the Consolidated Entity takes into account the characteristics of the asset or liability if market participants
would take those characteristics into account when pricing the asset or liability at the measurement date. Fair
value for measurement and/or disclosure purposes in these consolidated financial statements is determined on
such a basis, except for share-based payment transactions that are within the scope of K-IFRS 1102
Share-Based Payment; leasing transactions that are within the scope of K-IFRS 1017, Leases; and
measurements that have some similarities to fair value, but are not fair value, such as net realizable value in K-
IFRS 1002 Inventories or value in use in K-IFRS 1036 Impairment of Assets.
In addition, for financial reporting purposes, fair value measurements are categorized into Levels 1, 2 or 3
based on the degree to which the inputs to the fair value measurements are observable and the significance of
the inputs to the fair value measurement in its entirety, which are described as follows:
• Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity
can access at the measurement date;
• Level 2 inputs are inputs, other than quoted prices included within Level 1, that are observable for the asset
or liability, either directly or indirectly; and
• Level 3 inputs are unobservable inputs for the asset or liability.
3. CRITICAL ACCOUNTING JUDGMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY:
In the application of the Consolidated Entity’s accounting policies, which are described in Note 2, management
is required to make judgments, estimates and assumptions about the carrying amounts of assets and liabilities
that are not readily apparent from other sources. The estimates and associated assumptions are based on
historical experience and other factors that are considered to be relevant. Actual results may differ from these
estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates
are recognized in the period in which the estimate is revised if the revision affects only that period or in the
period of the revision and future periods if the revision affects both current and future periods.
(1) Critical judgments in applying accounting policies
The following are the critical judgments, apart from those involving estimations (see Note 3(2)), that the
directors have made in the process of applying the Consolidated Entity’s accounting policies and that have the
most significant effect on the amounts recognized in the consolidated financial statements.
1) Judgments in applying consolidation
The Parent has a 0.9% ownership interest in Privia Second Securitization Specialty Co., Ltd., and Privia Third
Securitization Specialty Co., Ltd. The directors of the Parent made an assessment as at the date of initial
application of K-IFRS 1110 (January 1, 2013) as to whether the Parent has control over Privia Second
Securitization Specialty Co., Ltd., and Privia Third Securitization Specialty Co., Ltd., in accordance with the
new definition of control and the related guidance set out in K-IFRS 1110. It is concluded that the Parent has
control over subsidiaries as it involves in the objectives and design of the subsidiaries and is exposed to their
parts of risks and rewards. Also, all the decision-making processes of the subsidiaries are operated on autopilot
by provisions and articles of association and the Parent is considered to have an ability to use power because
the Parent has control over the changes of provisions and articles of association. Therefore, the directors
concluded that it has control over the subsidiaries. Details of this control assessment are set out in Note 4.

- 18 -
(2) Key sources of estimation uncertainty
Critical accounting judgment and key sources of estimation uncertainty at the end of reporting period having
significant risk factors that can incur the material changes in the book value of assets and liabilities of the
Consolidated Entity for the following fiscal year are as follows:
1) Allowance for Doubtful Accounts
The Consolidated Entity determines and recognizes allowances for losses through impairment testing on credit
card assets and other assets, such as other accounts receivable, advance payments and accrued income. The
Consolidated Entity also recognizes provisions for losses on unused commitments. The accuracy of provisions
for credit losses is determined by the risk assessment methodology and assumptions used for estimating
expected cash flows of the borrower for allowances on individual loans and collectively assessing allowances
for groups of loans and provisions for unused commitments.
2) Unearned revenue from point programs
The Consolidated Entity provides its customers with incentives to buy goods or services by providing awards
(customer loyalty programs) and allocates the fair value of the consideration received or receivable between the
award credits granted (points) and the other components of the revenue transaction. The Consolidated Entity
supplies the awards such as discounted payments or free gifts. The consideration allocated to the award credits
is measured by reference to their fair value, i.e., the amount for which the award credits could be sold
separately. The fair value of the consideration allocated to the award credits is estimated by taking into account
expected redemption rates, etc., and recognized as deferred revenue until the Consolidated Entity fulfills its
obligations to deliver awards to customers. The amount of revenue recognized is to be based on the number of
award credits that have been redeemed in exchange for awards, relative to the total number expected to be
redeemed.
3) Postemployment Benefits: Defined Benefit Plans
The Consolidated Entity operates a defined benefit pension plan (“Plan”). The amount recognized as a defined
benefit liability is the present value of the defined benefit obligation, less the fair value of plan assets at the end
of the reporting period. The present value of defined benefit obligation is calculated annually by using actuarial
assumptions, such as future increases in salaries, expected returns on plan assets, discount rate and others. The
Plan has the uncertainty due to the nature of long-term plan. The defined benefit obligation as of December 31,
2013 and 2012, is ￦3,367 million and ￦10,695 million, respectively (see Note 15).
4) Fair Value Measurement of Financial Instruments
As disclosed in Note 34, the fair value of financial instruments classified as certain level is measured using
valuation techniques where significant inputs are not based on observable market data. The Consolidated Entity
believes that valuation methods and assumptions used for measuring the fair value of financial instruments are
reasonable and that the fair value recognized in the consolidated statements of financial position is appropriate.

- 19 -
4. SUBSIDIARY:
(1) Details of the Company’s subsidiaries as of December 31, 2013 and 2012, are as follows:
Place of
incorporation
and operation
Voting share (%)
Companies Major operation December 31, 2013 December 31, 2012
End of
reporting
period
PRIVIA 2nd
SPC Asset securitization Korea 0.9 0.9 December
PRIVIA 3rd
SPC Asset securitization Korea 0.9 0.9 January
The subsidiaries were established for the Consolidated Entity’s business activity. The Parent has a power over
the subsidiaries due to the fact that the Parent involves in the objectives and design of the subsidiaries and is
exposed to risks and rewards. Also, all the decision-making processes of the subsidiaries are operated on
autopilot by provisions and articles of association. The Parent is considered to have an ability to use power
because the Parent has control over the changes of provisions and articles of association. Therefore, the Parent
includes the special-purpose entities under consolidation.
Meanwhile, in case that default occurs by the subsidiaries related to derivative contracts hedging risks arising
from debentures issued for asset securitization, counterparties of the derivative contracts can claim for
reimbursement from the Parent.
(2) Summary of financial information of subsidiaries as of December 31, 2013 and 2012, are as follows (Unit:
won in millions)
December 31, 2013
Total assets Total liabilities Sales Net income Comprehensive income
PRIVIA 2nd
SPC ￦ 298,795 ￦ 299,033 ￦ 22,628 ￦ - ￦ -
PRIVIA 3rd
SPC 450,569 450,009 21,963 - -
December 31, 2012
Total assets Total liabilities Sales Net income Comprehensive income
PRIVIA 2nd
SPC ￦ 448,139 ￦ 453,646 ￦ 50,584 ￦ - ￦ -
PRIVIA 3rd
SPC 450,569 449,321 33,483 - -

- 20 -
5. CASH AND DEPOSITS:
(1) Details of cash and cash equivalents as of December 31, 2013 and 2012, are as follows (Unit: Korean won in
millions):
Annual
interest rate (%) Amount
Annual
interest rate (%) Amount
Cash on hand - ￦ - - ￦ -
Current deposits - 151 - 90
Pass-book deposits - 176,104 - 89,957
Other cash equivalents 2.48–2.60 100,000 2.70–2.90 170,000
Time deposits 2.59 14,200 2.00 11,500
Other deposits 2.50–2.75 675,000 2.80–3.00 520,000
￦ 965,455 ￦ 791,547
(2) Restricted deposits and others as of December 31, 2013 and 2012, are as follows (Unit: Korean won in
millions):
Type Entity December 31, 2013 December 31, 2012 Restriction
Deposits KB and others ￦ 19 ￦ 16
Guarantee deposits for overdraft
Shinhan Bank
and others 33,000 33,000 Secured deposits
Mirae Asset
Securities 13 13 Social enterprise fund
Other financial
assets
Korea Asset
Management
Corporation 9,246 9,246 Escrow account
￦ 42,278 ￦ 42,275
6. INVESTMENT FINANCIAL ASSETS:
Investment financial assets as of December 31, 2013 and 2012, are as follows (Unit: Korean won in millions):
Financial assets AFS
Unlisted shares investment ￦ 1,767 ￦ 1,767

- 21 -
7. CARD ASSETS AND LOANS:
Card assets and loans by customer as of December 31, 2013 and 2012, are as follows (Unit: won in millions):
Households Corporates Total Households Corporates Total
CARD ASSETS :
Card receivables (*) ￦ 5,858,311 ￦ 524,901 ￦6,383,212 ￦ 6,116,731 ￦ 479,630 ￦6,596,361
Cash advances 849,422 - 849,422 940,019 - 940,019
Card loans (*) 2,701,390 - 2,701,390 2,351,470 - 2,351,470
Subtotal 9,409,123 524,901 9,934,024 9,408,220 479,630 9,887,850
Allowance for
doubtful accounts (196,555) (8,302) (204,857) (176,050) (4,762) (180,812)
Book value ￦ 9,212,568 ￦ 516,599 ￦ 9,729,167 ￦ 9,232,170 ￦ 474,868 ￦9,707,038
Composition rate 94.69% 5.31% 100.00% 95.11% 4.89% 100.00%
(*) Adjusted for deferred origination fees and present value discounts.
8. ALLOWANCE FOR DOUBTFUL ACCOUNTS:
Changes in the allowance for doubtful accounts for the years ended December 31, 2013 and 2012, are as follows
(Unit: Korean won in millions):
Card
receivables
Cash
advances Card loans Loans Other assets Total
Balance at January 1, 2013 ￦ 65,652 ￦ 33,786 ￦ 81,374 ￦ - ￦ 2,267 ￦ 183,079
Bad debt expenses (1,765) (520) (604) - - (2,889)
Bad debt recovered 712 970 301 - - 1,983
Disposition and repurchase (35,114) (22,200) (34,275) - - (91,589)
Provision for allowance for
doubtful accounts 40,620 19,278 56,642 - 744 117,284
Balance at December 31,
2013 ￦ 70,105 ￦ 31,314 ￦ 103,438 ￦ - ￦ 3,011 ￦ 207,868
Card
receivables
Cash
advances Card loans Loans Other assets Total
Balance at January 1, 2012 ￦ 68,773 ￦ 37,910 ￦ 67,071 ￦ 30 ￦ 2,306 ￦ 176,090
Bad debt expenses (1,599) (408) (307) - - (2,314)
Bad debt recovered 780 1,093 330 - - 2,203
Disposition and repurchase (25,829) (16,792) (18,324) - - (60,945)
Provision for allowance
for doubtful accounts 23,527 11,983 32,604 (30) (39) 68,045
Balance at December 31,
2012 ￦ 65,652 ￦ 33,786 ￦ 81,374 ￦ - ￦ 2,267 ￦ 183,079

- 22 -
9. PROPERTY AND EQUIPMENT:
(1) Property and equipment as of December 31, 2013 and 2012, are as follows (Unit: Korean won in millions):
Acquisition
cost
Accumulated
depreciation Book value
Acquisition
cost
Accumulated
depreciation Book value
Land ￦ 122,012 ￦ - ￦ 122,012 ￦ 122,012 ￦ - ￦ 122,012
Buildings 79,196 (6,314) 72,882 64,818 (4,487) 60,331
Vehicles 89 (38) 51 503 (340) 163
Fixtures and
equipment 150,981 (97,287) 53,694 146,839 (90,149) 56,690
Finance lease
assets 3,334 (3,056) 278 3,334 (1,945) 1,389
Construction in
progress 33,125 - 33,125 23,798 - 23,798
Total ￦ 388,737 ￦ (106,695) ￦ 282,042 ￦ 361,304 ￦ (96,921) ￦ 264,383
(2) The changes in book value of property and equipment for the years ended December 31, 2013 and 2012, are
as follows (Unit: Korean won in millions):
Beginning
balance Acquisition Reclassification(*) Disposal Depreciation
Ending
balance
Land ￦ 122,012 ￦ - ￦ - ￦ - ￦ - ￦ 122,012
Buildings 60,331 7,315 7,062 - (1,826) 72,882
Vehicles 163 13 - (62) (63) 51
Fixtures and equipment 56,690 22,805 1,594 (2,260) (25,135) 53,694
Finance lease assets 1,389 - - - (1,111) 278
Construction in
progress 23,798 18,203 (8,876) - - 33,125
Total ￦ 264,383 ￦ 48,336 ￦ (220) ￦ (2,322) ￦ (28,135) ￦ 282,042
(*) ￦344 million of construction in progress is reclassified to advance payments and ￦124 million of fixtures
and equipment is reclassified from construction in progress to intangible assets (see Note 10).
Beginning
balance Acquisition Reclassification(*) Disposal Depreciation
Ending
balance
Land ￦ 83,995 ￦ 34,166 ￦ 3,851 ￦ - ￦ - ￦ 122,012
Buildings 42,187 23,162 (3,505) - (1,513) 60,331
Vehicles 270 76 - (40) (143) 163
Fixtures and equipment 57,974 23,374 125 (558) (24,225) 56,690
Finance lease assets 2,500 - - - (1,111) 1,389
Construction in
progress 472 18,399 4,927 - - 23,798
Total ￦ 187,398 ￦ 99,177 ￦ 5,398 ￦ (598) ￦ (26,992) ￦ 264,383
(*)￦5,398 million of construction in progress is reclassified from advance payments.

- 23 -
10. INTANGIBLE ASSETS:
(1) Intangible assets as of December 31, 2013 and 2012, are as follows (Unit: Korean won in millions):
December 31, 2013
Acquisition cost
Accumulated
amortization
Accumulated
impairment Book value
Development cost ￦ 71,713 ￦ (36,279) ￦ - ￦ 35,434
Industrial property rights 195 (159) - 36
Others 16,830 (12,325) - 4,505
Construction in progress 65,899 - - 65,899
Membership 21,695 - (539) 21,156
Total ￦ 176,332 ￦ (48,763) ￦ (539) ￦ 127,030
December 31, 2012
Acquisition cost
Accumulated
amortization
Accumulated
impairment Book value
Development cost ￦ 59,191 ￦ (24,444) ￦ - ￦ 34,747
Industrial property rights 195 (119) - 76
Others 16,868 (9,039) - 7,829
Construction in progress 11,041 - - 11,041
Membership 21,484 - (513) 20,971
Total ￦ 108,779 ￦ (33,602) ￦ (513) ￦ 74,664
(2) The changes in intangible assets for the years ended December 31, 2013 and 2012, are as follows (Unit:
Korean won in millions):
(*) ￦124 million of construction in progress is reclassified to fixtures and equipment (see Note 9).
(*) ￦803 million of construction in progress is reclassified to advance payments.
Beginning
balance Acquisition
Reclassification
(*) Disposal Amortization Impairment
Ending
balance
Development cost ￦ 34,747 ￦ 13,588 ￦ 4,936 ￦ (5,285) ￦ (12,552) ￦ - ￦ 35,434
Industrial
property rights 76 - - - (40) - 36
Others 7,829 31 - (13) (3,342) - 4,505
Construction in
progress 11,041 59,918 (5,060) - - - 65,899
Membership 20,971 244 - (33) - (26) 21,156
Total ￦ 74,664 ￦ 73,781 ￦ (124) ￦ (5,331) ￦ (15,934) ￦ (26) 127,030
Beginning
balance Acquisition
Reclassification
(*) Disposal Amortization Impairment
Ending
balance
Development cost ￦ 36,656 ￦ 7,543 ￦ 1,149 ￦ - ￦ (10,601) ￦ - ￦ 34,747
Industrial
property rights 116 - - - (40) - 76
Others 11,369 - - - (3,540) - 7,829
Construction in
progress 2,101 10,892 (1,952) - - - 11,041
Membership 22,734 - - (1,250) - (513) 20,971
Total ￦ 72,976 ￦ 18,435 ￦ (803) ￦ (1,250) ￦ (14,181) ￦ (513) 74,664

- 24 -
11. ASSETS PLEDGED AS COLLATERAL:
Land and buildings amounting to￦471 million are provided as collateral for leasehold deposit received as of
December 31, 2013.
12. BORROWINGS:
Borrowings as of December 31, 2013 and 2012, are as follows (Unit: Korean won in millions):
Annual interest
rates (%) MaturityBorrowed from December 31, 2013 December 31, 2012
Commercial
papers - - - ￦ - ￦ 350,000
Borrowings
Hana bank
and seven others
3.56–5.55
2014.02.21–
2016.04.01 212,500 137,500
￦ 212,500 ￦ 487,500
13. BONDS PAYABLE:
(1) Bonds payable issued by the Consolidated Entity and outstanding as of December 31, 2013 and 2012, are as
follows (Unit: Korean won in millions):
Annual
interest rates (%) Maturity
Par value Issue price Par value Issue price
Short-term
debentures - - ￦ - ￦ - ￦ 170,000 ￦ 170,000
Current
portion of
long-term
debentures
2.91–6.75,
1M USD
LIBOR+0.724
2014.01.08–
2014.12.22
1,701,413 1,701,413 1,707,580 1,707,580
Long-term
debentures
2.77–5.68,
1M USD LIBOR+1.50
2015.01.19–
2020.10.29 5,284,120 5,284,120 4,665,067 4,665,067
Discounts on bonds (7,271) (9,471)
Bonds payable, net ￦6,978,262 ￦6,533,176
The outstanding bonds payable are non-guaranteed corporate bonds, with their principals to be redeemed by
installment or at maturity. Bond issuance costs are recorded as discounts on bonds payable and amortized using
the effective interest rate method.
(2) The redemption schedule for the bonds payable is as follows (Unit: Korean won in millions):
Period
Amount to be redeemed
as of December 31, 2013
2014.01.01–2014.12.31 ￦ 1,701,413
2015.01.01–2015.12.31 1,905,120
2016.01.01–2016.12.31 1,400,000
2017.01.01–2017.12.31 1,068,000
2018.01.01 911,000
￦ 6,985,533
Period
Amount to be redeemed
as of December 31, 2012
2013.01.01–2013.12.31 ￦ 1,877,580
2014.01.01–2014.12.31 1,705,627
2015.01.01–2015.12.31 1,821,440
2016.01.01–2016.12.31 720,000
2017.01.01 418,000
￦ 6,542,647

- 25 -
14. FINANCE LEASE LIABILITIES:
(1) Lease contract
The Consolidated Entity has a three-year finance lease for electronic equipment. The Consolidated Entity has a
bargain purchase option at expiration date of lease contract. The lessor has the legal ownership of the finance
lease, whose book value amounts to ￦278 million and ￦1,389 million as of December 31, 2013 and 2012,
respectively, and which are set as collateral for finance lease obligation.
(2) Finance lease liabilities of December 31, 2013 and 2012, are as follows (Unit: Korean won in millions):
Minimum lease
payments
Present value of
minimum lease payments
Minimum lease
payments
Present value of
minimum lease payments
Less than 1 year ￦ 301 ￦ 298 ￦ 1,202 ￦ 1,154
1-5 years - - 301 298
Present value
discounts (3) (51)
Present value ￦ 298 ￦ 1,452
15. RETIREMENT BENEFIT PLAN:
(1) Defined Contribution Plan
The expense recognized in the consolidation statements of comprehensive income related to postemployment
benefit plan under the defined contribution plan for the years ended December 31, 2013 and 2012 are as follows
(Unit: Korean won in millions):
Defined contribution plan ￦ 26 ￦ 10
(2) Defined benefit plan
1) General
The Consolidated Entity operates a defined benefit plan that is linked to final payment. Plan assets mainly
consist of deposits and are exposed to risk of fall in interest rate.
2) Details of defined benefit plan are as follows (Unit: Korean won in millions):
As of December 31, 2013 and 2012, the amounts recognized in the consolidated statements of financial
position related to retirement benefit obligation are as follows (Unit: Korean won in millions):
Present value of defined benefit obligation ￦ 46,403 ￦ 44,474
Fair value of plan assets (43,006) (33,745)
Transferred to National Pension Fund (30) (34)
Retirement benefit obligation ￦ 3,367 ￦ 10,695

- 26 -
3) Net defined benefit obligation
Changes in present value of net defined benefit obligation for the years ended December 31, 2013 and 2012,
are as follows (Unit: Korean won in millions):
Present value of
the defined
benefit obligation Plan assets
National
Pension Fund
Net defined
benefit obligation
Beginning balance ￦ 44,474 ￦ (33,745) ￦ (34) ￦ 10,695
Contributions from the
employer
- (11,100) - (11,100)
Current service cost 9,548 - - 9,548
Interest expense
(income) 1,519 (1,087) - 432
Return on plan assets,
excluding amounts
included in interest
income above - 38 - 38
Actuarial gains and
losses arising from
changes in
demographic
assumptions 185 - - 185
Actuarial gains and
losses arising from
changes in financial
assumptions (1,186) - - (1,186)
Actuarial gains and
losses arising from
changes in
experience
adjustments (4,316) - - (4,316)
Transfer of employees
between the
Company and its
related companies (169) (190) - (359)
Benefits paid (3,652) 3,078 4 (570)
Ending balance ￦ 46,403 ￦ (43,006) ￦ (30) ￦ 3,367

Hcc 2013 audit_en

Empfohlen

Empfohlen

Weitere ähnliche Inhalte

Was ist angesagt?

Was ist angesagt? (20)

Ähnlich wie Hcc 2013 audit_en

Ähnlich wie Hcc 2013 audit_en (18)

Mehr von Hyundai Finance

Mehr von Hyundai Finance (20)

Kürzlich hochgeladen

Kürzlich hochgeladen (20)

Hcc 2013 audit_en