Rr2 q 2018 en

HYUNDAICAPITALSERVICES,INC.ANDSUBSIDIARIES
CondensedConsolidatedInterimFinancialStatements
(Unaudited)
June30,2018
(WithIndependentAuditors’ReviewReportThereon)

HYUNDAI CAPITAL SERVICES, INC. AND SUBSIDIARIES
Table of Contents
Page
Independent Auditors’ Review Report 1
Condensed Consolidated Interim Statements of Financial Position 3
Condensed Consolidated Interim Statements of Comprehensive Income 5
Condensed Consolidated Interim Statements of Changes in Equity 7
Condensed Consolidated Interim Statements of Cash Flows 8
Notes to Condensed Consolidated Interim Financial Statements 9

Independent Auditors’ Review Report
(Based on a report originally issued in Korean)
The Board of Directors and Shareholders
Hyundai Capital Services, Inc.:
Reviewed Financial Statements
We have reviewed the accompanying condensed consolidated interim financial statements of Hyundai
Capital Services, Inc. and its subsidiaries (the Group), which comprise the condensed consolidated
statement of financial position as of June 30, 2018, the condensed consolidated statements of
comprehensive income for the three-month and six-month periods ended June 30, 2018 and 2017,
changes in equity and cash flows for the six-month periods ended June 30, 2018 and 2017, and notes,
comprising a summary of significant accounting policies and other explanatory information.
Management’s Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these condensed consolidated
interim financial statements in accordance with Korean International Financial Reporting Standards (K-
IFRS) No.1034, Interim Financial Reporting, and for such internal control as management determines
is necessary to enable the preparation of financial statements that are free from material misstatement,
whether due to fraud or error.
Auditors’ Review Responsibility
Our responsibility is to issue a report on these condensed consolidated interim financial statements
based on our reviews.
We conducted our reviews in accordance with the Review Standards for Quarterly and Semiannual
Financial Statements established by the Securities and Futures Commission of the Republic of Korea.
A review of interim financial information consists of making inquiries, primarily of persons responsible
for financial and accounting matters, and applying analytical and other review procedures. A review is
substantially less in scope than an audit conducted in accordance with Korean Standards on Auditing
and consequently does not enable us to obtain assurance that we would become aware of all significant
matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
Conclusion
Based on our reviews, nothing has come to our attention that causes us to believe that the accompanying
condensed consolidated interim financial statements referred to above are not prepared, in all material
respects, in accordance with K-IFRS No.1034, Interim Financial Reporting.

2
Other matters
The procedures and practices utilized in the Republic of Korea to review such condensed consolidated
interim financial statements may differ from those generally accepted and applied in other countries.
The consolidated statement of financial position of the Group as of December 31, 2017, and the related
consolidated statements of comprehensive income, changes in equity and cash flows for the year then
ended, which are not accompanying this report, were audited by us in accordance with Korean Standards
on Auditing and our report thereon, dated February 23, 2018, expressed an unqualified opinion. The
accompanying condensed consolidated statement of financial position of the Group as of December 31,
2017, presented for comparative purposes, is consistent, in all material respects, with the audited
consolidated financial statements from which it has been derived.
KPMG Samjong Accounting Corp.
Seoul, Republic of Korea
August 13, 2018
This report is effective as of August 13, 2018, the review report date. Certain subsequent events or
circumstances, which may occur between the review report date and the time of reading this report,
could have a material impact on the accompanying condensed consolidated interim financial
statements and notes thereto. Accordingly, the readers of the review report should understand that the
above review report has not been updated to reflect the impact of such subsequent events or
circumstances, if any.

Condensed Consolidated Interim Statements of Financial Position (Unaudited)
As of June 30, 2018 and December 31, 2017
(In millions of Korean won)
June 30, December 31,
Notes 2018 2017
Assets
Cash and due from other financial institutions
Cash and cash equivalents 24 W 926,918 609,510
Due from banks 4 172,932 233,238
Short-term financial investments 5 732,318 1,289,046
1,832,168 2,131,794
Securities 6,7
Available-for-sale securities — 82,650
Investments in associates 583,621 517,431
Measured at fair value through profit or loss 41,477 —
Measured at fair value through other comprehensive income 42,006 —
667,104 600,081
Loans receivable 8,9,27
Loans receivable 10,581,886 10,060,627
Allowance for loan losses (493,436) (403,691)
10,088,450 9,656,936
Installment financial assets 8,9,27
Automobile installment financing receivables 10,946,953 10,135,656
Allowance for loan losses - automobile (108,422) (95,861)
Durable goods installment financing receivables 2 2
Allowance for loan losses - durable goods (2) (2)
Mortgage installment financing receivables 953 1,099
Allowance for loan losses - mortgage (26) (25)
10,839,458 10,040,869
Lease receivables 8,9,27
Finance lease receivables 2,531,684 2,458,555
Allowance for loan losses - finance lease (48,305) (44,824)
Cancelled lease receivables 40,350 36,631
Allowance for loan losses - cancelled lease (26,990) (26,980)
2,496,739 2,423,382
Leased assets
Operating lease assets 2,747,415 2,685,771
Accumulated depreciation (833,744) (797,676)
Accumulated impairment losses (816) (379)
Cancelled lease assets 33,508 17,421
Accumulated impairment losses (5,420) (5,345)
1,940,943 1,899,792
Property and equipment, net 10 255,333 260,761
Other assets
Non-trade receivables 152,484 124,978
Allowance for doubtful accounts 9 (9,437) (9,914)
Accrued revenues 144,810 119,050
Allowance for doubtful accounts 9 (17,524) (15,984)
Advance payments 89,145 47,674
Prepaid expenses 121,350 97,818
Intangible assets 11 166,023 176,202
Derivative assets 15,28 38,991 24,670
Leasehold deposits 23,642 25,639
Net defined benefit assets 13 — 4,399
709,484 594,532
Total assets W 28,829,679 27,608,147
See accompanying notes to the condensed consolidated interim financial statements.
3

Condensed Consolidated Interim Statements of Financial Position (Unaudited) (Continued)
As of June 30, 2018 and December 31, 2017
June 30, December 31,
Notes 2018 2017
Liabilities
Borrowed funds 12
Borrowings W 3,476,927 2,872,860
Bonds issued 19,884,885 19,142,152
23,361,812 22,015,012
Other liabilities
Non-trade payables 347,327 297,484
Accrued expenses 134,052 161,279
Unearned revenue 18,398 18,981
Withholdings 151,565 110,509
Derivative liabilities 15,28 272,256 363,934
Current tax liabilities 32,759 46,026
Employee benefit liabilities 13 8,031 6,345
Deposits received 367,677 408,842
Deferred income tax liabilities 44,595 60,505
Provisions 14 44,835 49,751
1,421,495 1,523,656
Total liabilities 24,783,307 23,538,668
Equity
Equity attributable to the owners of the Company
Issued capital 496,537 496,537
Capital surplus 408,347 408,347
Accumulated other comprehensive loss 23 (125,479) (38,237)
Retained earnings 16 3,231,908 3,164,079
4,011,313 4,030,726
Non-controlling interests 35,059 38,753
Total equity 4,046,372 4,069,479
Total liabilities and equity W 28,829,679 27,608,147
The condensed consolidated interim statement of financial position as of June 30, 2018 was prepared in
accordance with K-IFRS 1109 and K-IFRS 1115. The comparative financial statement was not restated
retrospectively. (See Note 3 and Note 32)
4

Condensed Consolidated Interim Statements of Comprehensive Income (Unaudited)
For the three-month and six-month periods ended June 30, 2018 and 2017
Three-month periods Six-month periods
ended June 30, ended June 30,
Notes 2018 2017 2018 2017
Operating revenue
Interest income 17 W 6,907 5,513 13,986 10,063
Gain on valuation and sale of securities 116 177 686 462
Income on loans 17,18 239,748 231,797 490,001 464,139
Income on installment financial assets 17,18 126,171 117,254 252,311 233,192
Income on leases 17,18 251,807 238,871 495,997 458,129
Gain on sale of loans 38,328 6,610 54,340 15,982
Gain (loss) on foreign currency transactions (22,221) (105,008) 11,292 279,902
Dividend income 275 328 5,271 2,079
Other operating income 19 252,312 81,573 308,377 117,331
Total operating revenue 893,443 577,115 1,632,261 1,581,279
Operating expenses
Interest expense 17 139,680 134,606 275,326 267,645
Lease expense 18 157,380 158,926 310,183 291,703
Loss on valuation and sale of securities 4 100 5 100
Provision for loan losses 9 90,100 81,822 191,555 141,416
Loss on sale of loans 2,724 — 5,783 —
Loss on foreign currency transactions 217,419 41,285 236,083 44,156
General and administrative expenses 20 178,459 178,472 359,062 358,021
Other operating expenses 19 (12,475) (91,601) 45,501 311,559
Total operating expenses 773,291 503,610 1,423,498 1,414,600
Operating income 120,152 73,505 208,763 166,679
Non-operating income
Share in net income of associates
under the equity method 7 17,678 20,237 36,196 42,375
Gain on sale of property and equipment 28 35 28 86
Other 1,591 2,215 3,615 3,966
Total non-operating income 19,297 22,487 39,839 46,427
Non-operating expenses
Share in net loss of associates
under the equity method 7 (27) (53) — 3
Loss on sale of property and equipment 10 3 89 8
Donation 40 277 116 394
Other 1 12 1 13
Total non-operating expenses 24 239 206 418
Profit before income taxes 139,425 95,753 248,396 212,688
Income tax expense 21 34,475 22,607 61,959 50,354
Profit for the period W 104,950 73,146 186,437 162,334
5

Condensed Consolidated Interim Statements of Comprehensive Income (Unaudited) (Continued)
For the three-month and six-month periods ended June 30, 2018 and 2017
Three-month periods Six-month periods
Notes 2018 2017 2018 2017
Other comprehensive income (loss), 23
net of income taxes
Items that will never be reclassified
to profit or loss:
Remeasurements of defined
benefit plans W 439 754 961 1,056
Net change in unrealized gains and losses on
equity securities measured at fair value
through other comprehensive income 1,513 — 2,983 —
Items that are or may be reclassified
subsequently to profit or loss:
Net change in unrealized gains and
losses on available-for-sale
securities — 819 — 1,954
Share in other comprehensive income
(loss) of associates under the
equity method (1,647) 13,860 11,137 (7,541)
Net change in effective portion of
cash flow hedges (53,000) 5,216 (102,908) 15,287
Net change in foreign currency
translation adjustments (9,416) 7,710 1,193 7,701
Net change in unrealized valuation gains and losses
on debt securities measured at fair value through
other comprehensive income 40 — 70 —
Total other comprehensive
income (loss), net of
income taxes (62,071) 28,359 (86,564) 18,457
Total comprehensive income for the period W 42,879 101,505 99,873 180,791
Profit attributtable to:
Owners of the Company W 107,384 76,421 191,341 166,665
Non-controlling interests (2,434) (3,275) (4,904) (4,331)
W 104,950 73,146 186,437 162,334
Total comprehensive income
attributtable to:
Owners of the Company W 48,163 103,501 104,171 183,616
Non-controlling interests (5,284) (1,996) (4,298) (2,825)
W 42,879 101,505 99,873 180,791
Earnings per share
Basic and diluted earnings per share 22 W 1,081 770 1,927 1,678
(in won)
The condensed consolidated interim statement of comprehensive income for the three-month and the six-month period
ended June 30, 2018 was prepared in accordance with K-IFRS 1109 and K-IFRS 1115. The comparative financial
statement was not restated retrospectively. (See Note 3 and Note 32)
6

Condensed Consolidated Interim Statements of Changes in Equity (Unaudited)
For the six-month periods ended June 30, 2018 and 2017
Equity attributable to owners of the Company
Capital surplus Accumulated other
Issued Additional Other comprehensive Retained Non-controlling Total
Capital paid-in capital capital surplus income earnings Total interests equity
Balances as of January 1, 2017 W 496,537 369,339 36,959 (61,118) 2,936,329 3,778,046 7,551 3,785,597
Profit for the period — — — — 166,665 166,665 (4,331) 162,334
Other comprehensive income (loss):
Net change in unrealized gains and losses on available-for-sale securities — — — 1,954 — 1,954 — 1,954
Share in other comprehensive loss of associates under the equity method — — — (7,541) — (7,541) — (7,541)
Net change in effective portion of cash flow hedges — — — 15,287 — 15,287 — 15,287
Net change in foreign currency translation adjustments — — — 6,195 — 6,195 1,506 7,701
Remeasurements of defined benefit plans — — — 1,056 — 1,056 — 1,056
Total comprehensive income — — — 16,951 166,665 183,616 (2,825) 180,791
Transaction with owners of the Company
Changes in subsidiaries from paid-in capital increase and others — — 2,049 — — 2,049 32,446 34,495
Annual dividends — — — — (82,922) (82,922) — (82,922)
Total transaction with owners of the Company — — 2,049 — (82,922) (80,873) 32,446 (48,427)
Balances as of June 30, 2017 W 496,537 369,339 39,008 (44,167) 3,020,072 3,880,789 37,172 3,917,961
Balances as of January 1, 2018 W 496,537 369,339 39,008 (38,237) 3,164,079 4,030,726 38,753 4,069,479
Adjustment upon adoption of K-IFRS 1109 (Including tax effects) — — — (72) (51,200) (51,272) 604 (50,668)
Adjustment upon adoption of K-IFRS 1115 (Including tax effects) — — — — 12,794 12,794 — 12,794
Balances as of January 1, 2018 (after adjustments) 496,537 369,339 39,008 (38,309) 3,125,673 3,992,248 39,357 4,031,605
Profit for the period — — — — 191,341 191,341 (4,904) 186,437
Other comprehensive income (loss):
Share in other comprehensive loss of associates under the equity method — — — 11,137 — 11,137 — 11,137
Net change in effective portion of cash flow hedges — — — (102,908) — (102,908) — (102,908)
Net change in foreign currency translation adjustments — — — 587 — 587 606 1,193
Remeasurements of defined benefit plans — — — 961 — 961 — 961
Net change in unrealized gains and losses on equity securities measured at fair value
through other comprehensive income — — — 2,983 — 2,983 — 2,983
Net change in unrealized valuation gains and losses on debt securities measured at
fair value through other comprehensive income — — — 70 — 70 — 70
Total comprehensive income — — — (87,170) 191,341 104,171 (4,298) 99,873
Transaction with owners of the Company
Annual dividends — — — — (85,106) (85,106) — (85,106)
Balances as of June 30, 2018 W 496,537 369,339 39,008 (125,479) 3,231,908 4,011,313 35,059 4,046,372
The condensed consolidated interim statement of changes in equity for the six-month period ended June 30, 2018 was prepared in accordance with K-IFRS 1109 and K-IFRS 1115. The financial statement
comparative was not restated retrospectively. (See Note 3 and Note 32)
7

Condensed Consolidated Interim Statements of Cash Flows (Unaudited)
For the six-month periods ended June 30, 2018 and 2017
Notes 2018 2017
Cash flows from operating activities
Cash generated from operations 24 W (334,089) (480,527)
Interest received 13,456 10,453
Interest paid (293,727) (272,681)
Dividends received 5,271 2,080
Income taxes paid (48,580) (64,348)
Net cash used in operating activities (657,669) (805,023)
Cash flows from investing activities
Dividends received from associates 88 116
Acquisition of investments in associates (15,389) (34,461)
Acquisition of property and equipment (8,438) (14,127)
Proceeds from sale of property and equipment 29 94
Acquisition of intangible assets (13,488) (14,870)
Proceeds from sale of intangible assets — 59
Increase in leasehold deposits (306) (959)
Decrease in leasehold deposits 2,376 5,712
Net cash used in investing activities (35,128) (58,436)
Cash flows from financing activities 24
Proceeds from borrowings 1,849,995 1,095,200
Repayments of borrowings (1,248,384) (712,667)
Proceeds from issue of bonds 4,135,531 4,555,898
Repayments of bonds (3,622,659) (3,840,521)
Payment upon settlement of derivative financial instruments, net (19,172) (17,587)
Dividends paid (85,106) (82,922)
Capital contribution from non-controlling interests — 34,494
Net cash provided by financing activities 1,010,205 1,031,895
Effect of exchange rate fluctuations on
cash and cash equivalents held — —
Net increase (decrease) in cash and cash equivalents 317,408 168,436
Cash and cash equivalents at beginning of the year 24 609,510 518,855
Cash and cash equivalents at end of the period 24 W 926,918 687,291
The condensed consolidated interim statement of cash flows for the six-month period ended June 30, 2018
was prepared in accordance with K-IFRS 1109 and K-IFRS 1115. The comparative financial statement was
not restated retrospectively. (See Note 3 and Note 32)
8

Notes to Condensed Consolidated Interim Financial Statements
(Unaudited)
June 30, 2018
9 (Continued)
1. Reporting Entity
Hyundai Capital Services, Inc. (the Company) was established on December 22, 1993, to engage
in installment financing, facilities leasing and new technology financing. The Company changed its
trade name from Hyundai Auto Finance Co., Ltd. to Hyundai Financial Services Co. on April 21, 1995,
and changed its trade name once again to Hyundai Capital Services, Inc. on December 30, 1998. In
accordance with the Monopoly Regulation and Fair Trade Act, the Company is incorporated into
Hyundai Motor Company Group. As of June 30, 2018, the Company’s operations are headquartered at
3 Uisadang-daero, Yeongdeungpo-gu, Seoul, Korea. Its major shareholders are Hyundai Motor
Company and Kia Motors with 59.68% and 20.10% ownership, respectively.
The consolidated financial statements include the accounts of the Company and its subsidiaries,
including Autopia 54st
Asset Securitization Specialty Company (ABS SPC) with trust for the
securitization, and other subsidiaries as summarized below (collectively, the Group). Investments in
Beijing Hyundai Auto Finance Co., Ltd. and four other associates are accounted for under the equity
method.
(1) The Group’s subsidiaries
Subsidiaries as of June 30, 2018 and December 31, 2017 are as follows. Asset securitization
vehicles are special purpose vehicles which are sponsored by the Group under its securitization program.
The Group is exposed to variability of returns of the vehicles through its holding of debt securities in
the vehicles and by issuing financial guarantees to the vehicles; and the Group manages key decisions
that significantly affect these vehicles’ returns. As a result, the Group has concluded that it controls
these vehicles even though its ownership interests over these securitization vehicles do not exceed 50%.
(*1) Including trusts for asset securitization
(*2) Hyundai Capital Europe GmbH holds 100% ownership interests of Hyundai Capital Services
Limited Liability Company located in Russia.
Ownership June 30, December 31,
Location (%) 2018 2017
Asset securitization vehicles:
Korea 0.5 Autopia 54th
, 55th
, 56th
, 57th
, 58th
, 59th
, 60th
, Autopia 52nd
, 54th
, 55th
, 56th
, 57th
, 58th
, 59th
,
61st
, 62nd
, 63rd
, and 64th
ABS SPCs (*1) 60th
, 61st
, 62nd
, 63rd
, and 64th
ABS SPCs (*1)
Limited liability companies
Germany 100 Hyundai Capital Europe GmbH (*2) Hyundai Capital Europe GmbH (*2)
65 Hyundai Capital Bank Europe GmbH Hyundai Capital Bank Europe GmbH
India 100 Hyundai Capital India Private Ltd. Hyundai Capital India Private Ltd.
Brazil 100 Hyundai Capital Brasil LTDA Hyundai Capital Brasil LTDA
Stock company:
Australia 100 Hyundai Capital Australia Pty Limited Hyundai Capital Australia Pty Limited
Trusts
Korea 100 Specified money trust (29 trusts) Specified money trust (31 trusts)

(Unaudited)
June 30, 2018
10 (Continued)
(2) Changes in subsidiaries
There were no subsidiaries that were included in the Group’s consolidated financial statements
except for changes in the number of specified money trust accounts in which the Group invests, and a
subsidiary that was excluded from the Group’s consolidated financial statements during the six-month
period ended June 30, 2018 is as follow:
(a) Subsidiaries excluded from the consolidated financial statements during the year
 Autopia 52nd
ABS SPCs (including trust for asset securitization): structured entity dissolved
(3) Key financial information of subsidiaries
Key financial information of subsidiaries as of and for the six-month period ended June 30, 2018
is summarized as follows:
(4) Nature of risks related to consolidated structured entities
As of June 30, 2018, Autopia 57th, 59th and 60th ABS SPCs, structured entities that the Group
consolidates, has entered into the currency swaps with banks in relation to asset backed securities note
issued by the SPCs. For protective right of the counterparties of the swaps, the Company has guaranteed
the swap and will be obligated for any losses due to default of SPCs.
(in millions of Korean won) Total
compre-
Operating Profit (loss) hensive
Assets Liabilities Equity revenue for the period income (loss)
Hyundai Capital Europe GmbH W 11,353 7,198 4,155 4,060 2,316 2,649
Hyundai Capital Bank Europe GmbH 714,429 607,481 106,948 23,823 (14,013) (12,297)
Hyundai Capital India Private Ltd. 659 183 476 564 (27) (40)
Hyundai Capital Brasil LTDA 7,631 — 7,631 2,913 1,314 478
Hyundai Capital Australia Pty Limited 901 59 842 595 53 43
Autopia ABS SPCs 2,514,125 2,513,926 199 64,296 (714) (2,609)
Autopia ABS trusts 4,935,993 4,446,603 489,390 128,965 4,357 4,357
Specified money trusts 918,524 — 918,524 924 924 924

(Unaudited)
June 30, 2018
11 (Continued)
2. Basis of Preparation
(1) Statement of compliance
The condensed consolidated interim financial statements have been prepared in accordance with
Korean International Financial Reporting Standards (K-IFRS), as prescribed in the Act on External
Audits of Corporations in the Republic of Korea.
These condensed consolidated interim financial statements were prepared in accordance with K-
IFRS No. 1034, Interim Financial Reporting, as part of the period covered by the Group’s K-IFRS
annual financial statements. Selected explanatory notes are included to explain events and transactions
that are significant to an understanding of the changes in financial position and performance of the
Group since the last annual consolidated financial statements as at and for the year ended December 31,
2017. These condensed consolidated interim financial statements do not include all of the disclosures
required for full annual financial statements.
(2) Use of estimates and judgments
The preparation of the condensed consolidated interim financial statements in conformity with K-
IFRS requires management to make judgments, estimates and assumptions that affect the application
of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual
results may differ from these estimates.
Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting
estimates are recognized in the period in which the estimates are revised and in any future periods
affected.
In preparing these condensed consolidated interim financial statements, the significant judgments
made by management in applying the Group’s accounting policies and the key sources of estimation
uncertainty except for changes described in Note 3 (1) were the same as those that were applied to the
consolidated financial statements as of and for the year ended December 31, 2017.
(3) Measurement of fair value
The Group regularly reviews significant unobservable inputs and valuation adjustments. If third
party information, such as broker quotes or pricing services, is used to measure fair values, then the
Group assesses the evidence obtained from the third parties to support the conclusion that such
valuations meet the requirements of K-IFRS, including the level in the fair value hierarchy.
When measuring the fair value of an asset or a liability, the Group uses market observable data as
far as possible. Fair values are categorized into different levels in a fair value hierarchy based on the
inputs used in the valuation techniques as follows.
 Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities.
 Level 2: inputs other than quoted prices included in Level 1 that are observable for the asset
or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).
 Level 3: inputs for the asset or liability that are not based on observable market data
(unobservable inputs).
If the inputs used to measure the fair value of an asset or a liability might be categorized in different
levels of the fair value hierarchy, then the fair value measurement is categorized in its entirety in the
same level of the fair value hierarchy as the lowest level input that is significant to the entire
measurement.

(Unaudited)
June 30, 2018
12 (Continued)
The Group recognizes transfers between levels of the fair value hierarchy at the end of the reporting
period during which the change has occurred.
Further information about the assumptions made in measuring fair values is included in Note 29.
3. Significant Accounting Policies
The significant accounting policies applied by the Group in preparation of its consolidated financial
statements are included below.
(1) Changes in accounting policies
Except as described below, the accounting policies applied by the Group in these consolidated
financial statements are the same as those applied by the Group in its consolidated financial statements
as of and for the year ended December 31, 2017. The Group has applied the following new standards,
with a date of initial application of January 1, 2018.
K-IFRS No. 1109, Financial Instruments
The Group has applied K-IFRS No. 1109, Financial instruments which was published in September
2015, for annual period beginning on January 1, 2018. K-IFRS 1109 has replaced K-IFRS No. 1039,
Financial instruments: recognition and measurement.
Main characteristics of K-IFRS 1109 are followings: classification and measurement of financial
instruments based on characteristics of contractual cash flows and business model for financial
instrument management, impairment model based on expected credit losses, changes in qualification
requirement of hedged items, enlargement of hedging instruments and changes in hedge effectiveness
tests.
(a) Classification and Measurement of Financial Assets
When K-IFRS 1109 is applied, the Group classifies financial assets to be measured at amortised
cost, fair value through other comprehensive income (“FVOCI”) and fair value through profit or loss
(“FVTPL”) on the basis of the Group's business model for financial assets and its contractual cash flow
characteristics. If a hybrid contract contains financial assets as host contract, its embedded derivatives
should not be bifurcated, and the hybrid financial instrument as a whole is assessed for classification.
(*1) The Group can irrevocably elect to classify financial assets to be measured at FVTPL at the
date of initial application to eliminate or reduce accounting mismatch.
(*2) The Group can irrevocably elect to classify equity securities not held for short-term trading as
to be measured at FVOCI at the date of initial application. In this case, the other comprehensive income
recognized may not be recycled as profit or loss subsequently.
Contractual cash flow characteristics
Solely Payment of Principal and Interest Others(*2)
Business Model
To collect contractual cash flows measured at amortised costs (*1) measured at FVTPL
To collect contractual cash flows
and sell financial assets measured at FVOCI (*1) measured at FVTPL
To sell financial asset, etc measured at FVTPL measured at FVTPL

(Unaudited)
June 30, 2018
13 (Continued)
Conditions for the classification as financial assets to be measured at amortised costs or FVOCI
are stricter under K-IFRS 1109 than K-IFRS 1039. When K-IFRS 1109 is applied, the proportion of
financial assets designated as at FVTPL can be increased and the volatility of profit or loss can be
expended.
(b) Classification and Measurement of Financial Liabilities
According to the K-IFRS 1109, changes in fair value of the financial liability designated as at
FVTPL that is attributable to changes in the credit risk should be presented as other comprehensive
income, not recognized in profit or loss. Recognized other comprehensive income amount will not be
subsequently reclassified as profit or loss. However, if recognizing the changes in fair value as other
comprehensive income may create or enlarge accounting mismatch, the amounts should be recognized
as profit or loss.
Changes in fair value of the financial liability designated as FVTPL under K-IFRS 1039 can be
partially recognized as other comprehensive income. Therefore, volatilities in profit or loss related to
fair value measurement of the financial liabilities can decrease.
(c) Impairment: Financial assets and contract assets
In accordance with K-IFRS 1039, impairment is recognized only if evidence of impairment based
on 'incurred loss model' is identified. In accordance with K-IFRS 1109, impairment should be
recognized based on 'expected credit loss impairment model' for debt instruments, lease receivables,
contract assets, loan commitments and financial guarantee contracts, measured at amortised cost or
FVOCI.
Under K-IFRS 1109, after the initial recognition of financial instruments, the Group shall measure
the loss allowance for the financial instruments at an amount equal to 12-month expected credit losses
or the lifetime expected credit losses and classify the instruments into three stages as the following table
according to the extent of increase in the credit risk on that financial instruments. Therefore, the Group
recognized credit losses under K-IFRS 1109 earlier than incurred loss model under K-IFRS 1039.
(*1) For debt instruments, the Group determines that credit risk has not increased significantly if
the assets have low credit risk at the reporting date.
According to K-IFRS 1109, the Group shall only recognize the cumulative changes of expected
credit losses since the initial recognition was made for loss allowance for financial assets of which credit
was impaired at its initial recognition.
(d) Hedge Accounting
Although K-IFRS 1109 maintains mechanics of hedging accounting: fair value hedge, cash flow
hedge and hedge of a net investment in a foreign operation as defined in K-IFRS 1039, the standard
replaces requirements for hedge accounting defined in complex and rule-based K-IFRS 1039 with a
principle-based approach which emphasizes Group's risk management activities. As a result of the
Description
Stage 1 Credit risk has not increased significantly 12-month expected credit losses :
since the initial recognition.(*1) Expected credit loss from possible default
of financial products for 12 months after reported period
Stage 2 Credit risk has increased significantly Lifetime expected credit losses :
since the initial recognition Expected credit loss from possible default of
Stage 3 Credit-impaired financial assets financial products for expected period of existence
Category

(Unaudited)
June 30, 2018
14 (Continued)
changes, scope of hedged items and hedging instruments are expanded and qualifying criteria for hedge
accounting are relaxed by eliminating criteria for evaluation of hedge effectiveness (80~125%) and
quantitative evaluation.
When the Group applies K-IFRS 1109, the Group can apply the rules related to hedge accounting
to the part of transactions which do not meet conditions for hedge accounting under K-IFRS 1039.
Therefore, changes in profit or loss can decrease upon adoption of K-IFRS 1109.
According to the transition for hedge accounting, when the Group first applies this standard, it may
choose as its accounting policy to continue to apply the hedge accounting requirements of K-IFRS 1039
instead of K-IFRS 1109.
The Group’s condensed consolidated interim financial statements have been prepared in
accordance with K-IFRS 1109, and the companying comparative consolidated financial statements have
not been retrospectively restated. Differences between the carrying amounts under K-IFRS 1039 and
K-IFRS 1109 as of December 31, 2017 were recognized in the opening retained earnings (or other
component of equity as appropriate). Further information is included in Note 32.
K-IFRS No. 1115, Revenue from Contracts with Customers
The Group has applied K-IFRS No. 1115, Revenue from Contracts with Customers which was
published on November 6, 2015, and effective for annual period beginning on January 1, 2018. It
replaces revenue recognition guidance, including K-IFRS No. 1018, Revenue, K-IFRS No. 1011,
Construction Contracts, K-IFRS No. 2031, Revenue-Barter Transaction Involving Advertising Services,
K-IFRS No. 2113, Customer Loyalty Programmes, K-IFRS No. 2115. Agreements for the Construction
of Real Estate and K-IFRS No. 2118, Transfers of Assets from Customers.
K-IFRS 1018 presents criteria for revenue recognition depending on types of transactions such as
sale of goods, providing services, loyalty revenue, dividend revenue, and agreements for the
construction. However, K-IFRS 1115 recognizes revenue by applying a new model for revenue
recognition (Step1. Identify the contract → Step2. Identify performance obligations → Step3.
Determine the transaction price → Step4. Allocate the transaction price → Step5. Recognize revenue).
The Group has applied K-IFRS 1115 from January 1, 2018. According to the Group’s elected
transition approach, cumulative impacts from the initial application of K-IFRS 1115 of contracts not
yet completed as of January 1, 2018 were recognized retrospectively at the date of initial application.
The Group identifies performance obligations such as elective paid support options by customers
in lease contracts as a separate obligation. These performance obligations are regarded to be satisfied at
a point in time, not over the period of lease term.
At the date of initial application, the impacts of the separation of performance obligations on the
consolidated statement of financial position are as follows:
(in millions of Korean won) January 1, 2018
Increase in
Accrued revenues W 17,187
Allowance for doubtful accounts (308)
16,879
Tax effects (4,085)
Application effects reflected in
the opening retained earnings W 12,794

(Unaudited)
June 30, 2018
15 (Continued)
The impacts of the separation of performance obligations on the consolidated interim statement
of financial position as of June 30, 2018 are as follows:
The impacts of the separation of performance obligations on the consolidated interim financial
statements of comprehensive income for the six-month period ended June 30, 2018 are as follows:
(2) New accounting standards issued but not yet effective
A number of new standards are effective for annual periods beginning on or after January 1, 2019,
and earlier adoption is permitted; however the Group has not early adopted the following new standards
in prepared these consolidated financial statements.
K-IFRS No. 1116, Leases
K-IFRS No. 1116, Leases which was published on May 2017, is effective for periods beginning on
or after January 1, 2019, with early adoption permitted. K-IFRS 1116 will replace the current K-IFRS
No. 1017, Leases, K-IFRS No. 2104, Determining whether an Arrangement contains a Lease, K-IFRS
No. 2015, Operating Leases-Incentives and K-IFRS No. 2027, Evaluating the Substance of
Transactions Involving the Legal Form of a Lease.
K-IFRS 1116 provides an accounting model for a lessee to recognize an asset and a liability at the
commencement date on financial statements. A lessee recognizes the right-of-use asset that represents
the right to use an underlying asset and a lease liability that represents an obligation of payments for
the right to use the underlying assets during the lease term that are not paid at the commencement date.
Short-term leases and leases for which the underlying asset is of low value can be exempted from lease
recognition. The classification criteria between a financial lease and an operating lease for a lessor under
K-IFRS 1116 are similar to K-IFRS 1017.
The Group is currently in progress of analyzing the potential impact on its consolidated financial
statements resulting from the application of K-IFRS 1116.
Amount without
the application
(in millions of Korean won) June 30, 2018 Adjustment of K-IFRS 1115
Accrued revenues W 144,810 (4,227) 140,583
Allowance for doubtful accounts (17,524) 30 (17,494)
Current tax liabilties 32,759 (1,016) 31,743
Retained earnings before appropriation 2,870,302 (3,181) 2,867,121
Amount without
the application
(in millions of Korean won) June 30, 2018 Adjustment of K-IFRS 1115
Income on leases W 495,997 (4,227) 491,770
Provision for loan losses 191,555 (30) 191,525
Tax expense 61,959 (1,016) 60,943

(Unaudited)
June 30, 2018
16 (Continued)
4. Due from Banks
Restricted accounts in due from banks as of June 30, 2018 and December 31, 2017 are as follows:
5. Short-term Financial Investments
Short-term financial investments as of June 30, 2018 and December 31, 2017 are as follows:
For liquidity management, the Group holds short-term investments in excess of immediate funding
needs. These excess funds are invested in short-term, highly liquid and investment grade money market
instruments, which provide liquidity for the Group’s short-term funding needs and flexibility in the use
of other funding sources.
(in millions of Korean won) June 30, December 31,
2018 2017 Restriction
NongHyup Bank and 2 others W 5,700 5,700 Loans secured by saving accounts
KEB Hana Bank and 3 others 10 12 Key money deposits for checking account
W 5,710 5,712
(in millions of Korean won) Carrying amount
Acquisition June 30, December 31,
cost 2018 2017
Commercial paper W 721,638 722,413 1,223,999
Bank debenture — — 29,973
Special bond — — 30,133
Asset backed short-term bond 9,892 9,905 4,941
W 731,530 732,318 1,289,046

(Unaudited)
June 30, 2018
17 (Continued)
6. Securities Measured at Fair Value through Profit or Loss, Securities Measured at Fair Value
through Other Comprehensive Income and Available-for-sale Securities
(1) Securities Measured at Fair Value through Profit or Loss
Securities measured at fair value through profit or loss as of June 30, 2018 are as follows:
(*1) The Group recognized impairment losses except for memorandum values before previous year.
(*2) The fair value of the beneficiary certificate is quoted from an independent valuation service
provider, using the valuation technique based on the net asset value approach (NAV model).
(2) Securities Measured at Fair Value through Other Comprehensive Income
Securities measured at fair value through other comprehensive income as of June 30, 2018 are as
follows:
(*1) The equity securities the Group holds for the purposes of strategic alliance and others are
designated as securities measured at fair value through other comprehensive income.
Acquisition June 30,
cost 2018
Equity securities (*1) W 100 —
Beneficiary certificates (*2)
Hyundai Ship Special Asset Investment Trust III 3,951 3,972
Hi Ocean PCTC PF Special Asset Ship 2 1,000 1,001
Multi asset KDB Ocean value up Private Fund Special Asset Trust 8 5,869 5,869
KOTAM SML Private Fund Special Asset Trust 1 3,200 3,203
Multi asset KDB Ocean value up Private Fund Special Asset Trust PR-2 21,000 20,995
Multi asset VLOC Private Fund Special Asset Trust 1 6,440 6,437
41,460 41,477
W 41,560 41,477
(in millions of Korean won) June 30,
2018
Equity securities (*1)
Listed equity securities W 23,211
Unlisted equity securities 12,019
35,230
Debt securities
Government and public bonds 738
Corporate bonds 6,038
6,776
W 42,006

(Unaudited)
June 30, 2018
18 (Continued)
(a) Equity Securities
(*1) The fair value of HYUNDAI M Partners Co., Ltd. is estimated at the average of appraisal
value quoted from two independent valuation service providers, using the valuation technique based on
the net asset value approach (NAV model). Under the net asset value approach, a technique generally
considered to be under cost approach, the fair value of unlisted equity securities is measured based on
the investee’s assets and liabilities. The Group has reviewed the underlying assumptions and concurs
with the methodology employed.
(*2) Dividend income occurred from listed equity securities measured at fair value through other
comprehensive income the Group is still holding was W255 million during the six-month period ended
June 30, 2018.
(b) Debt Securities
The fair value of Seoul Metropolitan Rapid Transit Corp. and other Korean municipal bonds is
quoted from broker and dealer companies. The fair values of H&C 1st
ABS SPC and Veritas 1st
ABS
SPC are quoted from an independent valuation service provider, using the valuation technique based on
the income approach (DCF model).
(c) Changes in Loss Allowance for Expected Credit Losses on Debt Securities
Number Ownership Acquisition June 30,
of shares (%) cost 2018
Listed equity securities
NICE Information Service Co., Ltd. 1,365,930 2.25 W 3,312 15,025
NICE Holdings Co., Ltd. 491,620 1.30 3,491 8,186
Unlisted equity securities
HYUNDAI M Partners Co., Ltd. (*1) 1,700,000 9.29 9,888 11,950
Golfclub Lich AG 18 0.59 60 69
W 16,751 35,230
Acquisition June 30,
Issuer cost 2018
Government and Seoul Metropolitan Rapid
public bonds Transit Corp. and other
Korean municipal bonds W 691 738
Corporate bonds H&C 1st
ABS SPC 5,000 5,031
Veritas 1st
ABS SPC 1,000 1,007
W 6,691 6,776
Six-month period ended
(in millions of Korean won) June 30, 2018
12-month expected
credit losses
Opening balance W 18
Release of allowance (7)
Closing balance 11

(Unaudited)
June 30, 2018
19 (Continued)
(3) Available-for-sale Securities
Available-for-sale securities as of December 31, 2017 are as follows:
(a) Equity securities
(*1) The fair value of HYUNDAI M Partners Co., Ltd. is estimated at the average of appraisal
value quoted from two independent valuation service providers, using the valuation technique based on
the net asset value approach (NAV model), and the market approach. Under the net asset value approach,
a technique generally considered to be under cost approach, the fair value of unlisted equity securities
is measured based on the investee’s assets and liabilities. Under the market approach, comparable entity
valuation multiples (one-year average price-to-book ratio and price to sale ratio) derived from quoted
prices in exchange markets is used in applying valuation technique. The Group has reviewed the
underlying assumptions and concurs with the methodology employed.
(*2) The Group recognized an impairment loss of W100 million for the year ended December 31,
2017.
(b) Debt securities
The fair value of Seoul Metropolitan Rapid Transit Corp. and other Korean municipal bonds is
quoted from broker and dealer companies. The fair value of H&C 1s
ABS SPC is quoted from an
independent valuation service provider, using the valuation technique based on the income approach
(DCF model).
Number Ownership Acquisition December 31,
of shares (%) cost 2017
Listed equity securities
NICE Information Service Co., Ltd. 1,365,930 2.25 W 3,312 11,870
NICE Holdings Co., Ltd. 491,620 1.30 3,491 7,202
Unlisted equity securities
HYUNDAI M Partners Co., Ltd. (*1) 1,700,000 9.29 9,888 12,153
Korean Egloan, Inc. (*2) 4,000 3.12 100 —
Golfclub Lich AG 18 0.59 60 69
W 16,851 31,294
Acquisition December 31,
Issuer cost 2017
Government and Seoul Metropolitan Rapid
public bonds Transit Corp. and other
Korean municipal bonds W 799 830
Corporate bonds H&C 1st
ABS SPC 5,000 4,955
W 5,799 5,785

(Unaudited)
June 30, 2018
20 (Continued)
(c) Beneficiary certificates
The fair value of the beneficiary certificate is quoted from an independent valuation service
provider, using the valuation technique based on the net asset value approach (NAV model).
7. Investments in Associates
(1) Details of investments in associates
Details of investments in associates as of June 30, 2018 and December 31, 2017 are as follows:
(*1) While the Group holds less than 20% of the voting rights, it has the ability to exercise
significant influence through representation on the board of directors or equivalent governing body of
the investee. Therefore, investments in the entity are accounted for using the equity method.
(*1) While the Group holds less than 20% of the voting rights, it has the ability to exercise
significant influence through representation on the board of directors or equivalent governing body of
the investee. Therefore, investments in the entity are accounted for using the equity method.
Acquisition December 31,
cost 2017
Hyundai Ship Special Asset Investment Trust III W 4,293 4,315
Hi Ocean PCTC PF Special Asset Ship 1 913 924
Hi Ocean PCTC PF Special Asset Ship 2 1,000 1,001
Hi Ocean Tanker Prof PF SA Ship 1 8,715 8,795
Multi asset KDB Ocean value up Private Fund Special Asset Trust 8 5,938 5,937
KOTAM SML Private Fund Special Asset Trust 1 3,600 3,603
Multi asset KDB Ocean value up Private Fund Special Asset Trust PR-2 21,000 20,996
W 45,459 45,571
June 30, 2018
Principal Date of
Ownership place of financial
(%) business statements Industry
Korea Credit Bureau (*1) 7.00 Korea 06/30/2018 Credit information service
Hyundai Capital UK Ltd. 29.99 U.K. 06/30/2018 Automobile finance
Beijing Hyundai Auto Finance Co., Ltd. 46.00 China 06/30/2018 Automobile finance
Hyundai Capital Canada Inc. 20.00 Canada 06/30/2018 Automobile finance
BHJV ASSESSORIA E CONSULTORIA
EM GESTAO EMPRESARIAL LTDA. 50.00 Brazil 06/30/2018 Automobile finance(Scheduled)
December 31, 2017
Principal Date of
Ownership place of financial
(%) business statements Industry
Korea Credit Bureau (*1) 7.00 Korea 12/31/2017 Credit information service
Hyundai Capital UK Ltd. 29.99 U.K. 12/31/2017 Automobile finance
Beijing Hyundai Auto Finance Co., Ltd. 46.00 China 12/31/2017 Automobile finance
Hyundai Capital Canada Inc. 20.00 Canada 12/31/2017 Automobile finance

(Unaudited)
June 30, 2018
21 (Continued)
(2) Summary of financial information of investees
Summary of financial information of investees as of June 30, 2018 and December 31, 2017, and
for the six-month periods ended June 30, 2018 and 2017, and the reconciliation of investee’s net assets
to the carrying amount of the investments in the Group’s financial statements are as follows:
The
Group’s
Total Total Issued Total share in Carrying
assets liabilities capital equity net assets Goodwill amount
Korea Credit Bureau 80,792 18,764 10,000 62,028 4,342 1,037 5,379
Hyundai Capital UK Ltd. 3,083,270 2,858,820 96,055 224,450 67,313 — 67,313
Beijing Hyundai Auto Finance Co., Ltd. 5,480,146 4,478,791 708,965 1,001,355 460,623 — 460,623
Hyundai Capital Canada Inc. 1,395,535 1,227,677 208,608 167,858 33,572 2,145 35,717
EM GESTAO EMPRESARIAL LTDA. 29,306 127 30,779 29,179 14,589 — 14,589
(in millions of Korean won) Six-month period ended June 30, 2018
Other Total
compre- compre-
Operating Interest Interest Net hensive hensive
revenue income expense income income income Dividends
Korea Credit Bureau 37,342 145 — 5,919 — 5,919 1,250
Hyundai Capital UK Ltd. 62,922 62,684 15,108 21,469 3,584 25,053 —
Beijing Hyundai Auto Finance Co., Ltd. 236,306 225,306 96,007 62,962 32,068 95,030 —
Hyundai Capital Canada Inc. 194,715 147,739 131,474 1,113 (1,289) (176) —
EM GESTAO EMPRESARIAL LTDA. 291 291 — 152 (1,752) (1,600) —
(in millions of Korean won) December 31, 2017
The
Group’s
Total Total Issued Total share in Carrying
assets liabilities capital equity net assets Goodwill amount
Korea Credit Bureau 75,504 19,323 10,000 56,181 3,933 1,037 4,970
Hyundai Capital UK Ltd. 2,782,808 2,583,411 96,055 199,397 59,799 — 59,799
Beijing Hyundai Auto Finance Co., Ltd. 4,961,986 4,055,661 708,965 906,325 416,910 — 416,910
Hyundai Capital Canada Inc. 1,412,557 1,244,523 208,608 168,034 33,607 2,145 35,752
Other Total
compre- compre-
Operating Interest Interest Net hensive hensive
revenue income expense income income income
Korea Credit Bureau 31,726 144 — 4,944 — 4,944
Hyundai Capital Germany GmbH — — — (11) 89 78
Hyundai Capital UK Ltd. 58,729 58,478 13,148 19,385 914 20,299
Beijing Hyundai Auto Finance Co., Ltd. 255,178 244,426 86,726 77,684 (25,917) 51,767
Hyundai Capital Canada Inc. 119,214 114,045 103,281 (3,275) 8,359 5,084

(Unaudited)
June 30, 2018
22 (Continued)
(3) Roll-forward of investments in associates
The following tables present a roll-forward of the carrying amounts of investments in associates
for the six-month periods ended June 30, 2018 and 2017:
Share in
other
compre-
Opening Share in hensive Closing
balance Acquisition net income income (loss) Dividends balance
Korea Credit Bureau 4,970 — 497 — (88) 5,379
Hyundai Capital UK Ltd. 59,799 — 6,439 1,075 — 67,313
Beijing Hyundai Auto Finance Co., Ltd. 416,910 — 28,962 14,751 — 460,623
Hyundai Capital Canada Inc. 35,752 — 222 (257) — 35,717
EM GESTAO EMPRESARIAL LTDA. — 15,389 76 (876) — 14,589
W 517,431 15,389 36,196 14,693 (88) 583,621
Share in
other
compre-
Opening Share in hensive Closing
balance Acquisition net income income (loss) Dividends balance
Korea Credit Bureau W 4,812 — 369 — (116) 5,065
Hyundai Capital Germany GmbH 935 — (3) 27 — 959
Hyundai Capital UK Ltd. 48,891 — 5,813 274 — 54,978
Beijing Hyundai Auto Finance Co., Ltd. 386,864 — 35,735 (11,922) — 410,677
Hyundai Capital Canada Inc. — 34,461 458 1,672 — 36,591
W 441,502 34,461 42,372 (9,949) (116) 508,270

(Unaudited)
June 30, 2018
23 (Continued)
8. Financial Receivables
Financial receivables measured at amortised costs as of June 30, 2018 and December 31, 2017 are
as follows:
Deferred
loan costs,
net of fees
(Initial
Unpaid direct fees,
outstanding net of costs Present Allowance
principal on finance value for loan Carrying
balance leases) discounts losses amount
Loans receivable
Loans W 10,536,767 46,960 (1,841) (493,436) 10,088,450
Installment financial assets
Automobile 10,887,265 59,688 — (108,422) 10,838,531
Durable goods 2 — — (2) —
Mortgage 953 — — (26) 927
10,888,220 59,688 — (108,450) 10,839,458
Lease receivables
Finance lease receivables 2,531,979 (295) — (48,305) 2,483,379
Cancelled lease receivables 40,350 — — (26,990) 13,360
2,572,329 (295) — (75,295) 2,496,739
W 23,997,316 106,353 (1,841) (677,181) 23,424,647
Deferred
loan costs,
net of fees
(Initial
Unpaid direct fees,
outstanding net of costs Present Allowance
principal on finance value for loan Carrying
balance leases) discounts losses amount
Loans receivable
Loans W 10,012,666 49,874 (1,913) (403,691) 9,656,936
Installment financial assets
Automobile 10,082,011 53,645 — (95,861) 10,039,795
Durable goods 2 — — (2) —
Mortgage 1,097 2 — (25) 1,074
10,083,110 53,647 — (95,888) 10,040,869
Lease receivables
Finance lease receivables 2,458,875 (320) — (44,824) 2,413,731
Cancelled lease receivables 36,631 — — (26,980) 9,651
2,495,506 (320) — (71,804) 2,423,382
W 22,591,282 103,201 (1,913) (571,383) 22,121,187

(Unaudited)
June 30, 2018
24 (Continued)
9. Allowances for Loan Losses
The following tables present a roll-forward of allowance for loan losses including allowance for doubtful accounts for other assets for the six-month periods
ended June 30, 2018 and 2017:
The Group was able to collect receivables that were previously charged off for which the statute of limitation has not legally elapsed or due to other reasons.
The contractual amounts of such receivables written off but not yet collected as of June 30, 2018 were W157,209 million.
Loans receivable Installment financial assets Lease receivables
12-month Lifetime expected Purchased or 12-month Lifetime expected 12-month Lifetime expected
expected credit losses originated expected credit losses expected credit losses
credit Not credit- Credit- credit-impaired credit Not credit- Credit- credit Not credit- Credit- Other
losses impaired impaired financial assets losses impaired impaired losses impaired impaired assets Total
Opening balance W 162,728 70,889 164,201 55,384 64,552 18,657 26,784 22,187 8,624 44,275 26,586 664,867
Movements between the three stages
Transferred to 12-month expected credit losses 12,975 (12,283) (692) — 4,110 (4,030) (80) 5,224 (2,717) (2,507) — —
Transferred to lifelime expected credit losses (14,286) 16,921 (2,635) — (3,648) 4,340 (692) (1,591) 2,691 (1,100) — —
Transferred to credit-impaired (2,950) (9,011) 11,961 — (221) (1,407) 1,628 (231) (736) 967 — —
Disposals — — (48,675) (33,779) — — (10,195) — — (9) — (92,658)
Charge-offs — — (54,077) (36,296) — — (12,857) — — (112) (478) (103,820)
Recoveries — — 20,511 23,873 — — 4,134 — — 109 531 49,158
Unwinding of discounts — — (4,655) (29) — — (207) — — (74) — (4,965)
Provision for (release of) allowance 14,532 11,329 97,982 49,513 (4,835) 2,085 20,332 (5,827) 523 5,599 322 191,555
Others 5 — — — — — — — — — — 5
Closing balance W 173,004 77,845 183,921 58,666 59,958 19,645 28,847 19,762 8,385 47,148 26,961 704,142

(Unaudited)
June 30, 2018
25 (Continued)
10. Property and Equipment
The following tables present a roll-forward of the carrying amounts of property and equipment for
the six-month periods ended June 30, 2018 and 2017:
Installment
Loans financial Lease Other
receivable assets receivables assets Total
Opening balance W 377,249 80,600 71,224 27,464 556,537
Disposals (57,282) (7,538) (13) — (64,833)
Charge-offs (99,310) (12,619) (1,324) (568) (113,821)
Recoveries 44,652 4,260 24 1,060 49,996
Unwinding of discounts (1,858) (121) (59) — (2,038)
Provision for (release of) allowance 124,106 17,502 2 (194) 141,416
Others 38 — — — 38
Closing balance W 387,595 82,084 69,854 27,762 567,295
(in millions of
Korean won) Six-month period ended June 30, 2018
Opening Translation Closing
balance Addition Transfer Disposal Depreciation differences balance
Land W 97,883 — 1,303 — — — 99,186
Buildings 112,576 32 — — (1,622) — 110,986
Vehicles 3,936 131 — — (376) — 3,691
Fixture and
furniture 42,772 3,917 729 (91) (10,088) 43 37,282
Others 2,292 — 138 — — — 2,430
Construction
in progress 1,302 2,626 (2,170) — — — 1,758
W 260,761 6,706 — (91) (12,086) 43 255,333
(in millions of
balance Addition Transfer Disposal Depreciation differences balance
Land W 97,883 — — — — — 97,883
Buildings 89,040 — 23,593 — (1,436) — 111,197
Vehicles 4,475 138 — — (420) (2) 4,191
Fixture and
furniture 48,072 2,572 3,448 (16) (10,180) 61 43,957
Others 2,116 1 — — — — 2,117
Construction
in progress 28,939 6,860 (28,677) — — (42) 7,080
W 270,525 9,571 (1,636) (16) (12,036) 17 266,425

(Unaudited)
June 30, 2018
26 (Continued)
11. Intangible Assets
The following tables present a roll-forward of the carrying amounts of intangible assets for the six-
month periods ended June 30, 2018 and 2017:
(in millions of
balance Addition Transfer Disposal Amortization differences balance
Software
development costs W 113,582 175 6,008 — (17,092) — 102,673
Memberships 28,689 — — — — (12) 28,677
Other intangible
assets 25,406 746 424 — (4,348) 162 22,390
Software under
development 8,525 10,164 (6,432) — — 26 12,283
W 176,202 11,085 — — (21,440) 176 166,023
(in millions of
balance Addition Transfer Disposal Amortization differences balance
Software
development costs W 112,966 423 11,464 — (15,387) — 109,466
Memberships 27,370 1,329 — — — (3) 28,696
Other intangible
assets 26,443 2,809 319 (59) (4,004) 263 25,771
Software under
development 15,084 8,987 (10,147) — — 102 14,026
W 181,863 13,548 1,636 (59) (19,391) 362 177,959

(Unaudited)
June 30, 2018
27 (Continued)
12. Borrowed Funds
(1) Borrowings
Borrowings as of June 30, 2018 and December 31, 2017 are as follows:
(2) Bonds issued
Bonds issued as of June 30, 2018 and December 31, 2017 are as follows:
(in millions of Annual Carrying amount
Korean won) interest June 30, December 31,
Lender rate (%) Maturity 2018 2017
Short-term borrowings:
Commercial paper Shinhan Bank 1.94 ~ July 26, 2018 through
and 7 others 2.20 May 3, 2019 W 800,000 530,000
General loans Woori Bank 0.47 ~ July 31, 2018 through
and 8 others 2.90 June 24, 2019 355,098 307,114
1,155,098 837,114
Current portion of
long-term borrowings:
General loans Kookmin Bank 1.97 ~ July 2, 2018 through
and 7 others 3.05 June 26, 2019 574,333 517,777
Long-term borrowings:
Commercial paper KTB Investment
& Securities Co. 2.06 ~ October 25, 2019 through
and 6 others 2.24 October 27, 2020 700,000 700,000
General loans Kookmin Bank 0.93 ~ August 30, 2019 through
and 11 others 3.07 April 10, 2022 1,047,496 817,969
1,747,496 1,517,969
W 3,476,927 2,872,860
(in millions of Korean won) Annual Carrying amount
interest June 30, December 31,
rate (%) Maturity 2018 2017
Short-term notes:
Current portion of long-term bonds:
Bonds 1.32 ~ July 6, 2018 through W 4,667,499 5,195,047
Less: discount on bonds 5.15 August 18, 2022 (1,819) (2,842)
4,665,680 5,192,205
Long-term bonds:
Bonds 1.32 ~ July 4, 2019 through 15,252,824 13,982,195
Less: discount on bonds 3.97 April 26, 2028 (33,619) (32,248)
15,219,205 13,949,947
W 19,884,885 19,142,152

(Unaudited)
June 30, 2018
28 (Continued)
13. Employee benefit liabilities
(1) Defined contribution plans
The Group recognized W279 million and W143 million in the statement of comprehensive income
for retirement benefits based on the defined contribution plan for the six-month periods ended June 30,
2018 and 2017, respectively.
(2) Defined benefit plans
(a) Characteristics of the defined benefit plan
The Group operates a defined benefit plan. Under the plan, eligible employees are paid severance
benefits based on average salaries of three months prior to the termination and service periods. The plan
assets are mainly comprised of interest rate guaranteed type instruments, and therefore, are exposed to
the risk of declining interest rates.
(b) Roll-forward of present value of defined benefit obligations
The following tables present a roll-forward of the present value of defined benefit obligations for
the six-month periods ended June 30, 2018 and 2017:
(c) Roll-forward of fair value of plan assets
The following tables present a roll-forward of the fair value of plan assets for the six-month periods
Six-month periods ended June 30,
(in millions of Korean won) 2018 2017
Opening balance W 101,362 103,403
Current service costs 7,471 8,236
Interest cost 1,531 1,277
Actuarial losses (gains):
Experience adjustments (1,925) (1,092)
Changes in economic assumptions (336) (1,008)
(2,261) (2,100)
Transfer of severance benefits from (to) related parties, net 398 (1,714)
Benefits paid (4,999) (3,110)
Closing balance W 103,502 105,992
Expected return on plan assets 1,609 1,255
Actuarial losses - Changes in economic assumptions (993) (707)
Transfer of severance benefits from (to) related parties, net 383 (878)
Benefits paid (5,045) (3,438)

(Unaudited)
June 30, 2018
29 (Continued)
(3) Other long-term employee benefit plans
The Group grants long service payments to employees and directors with certain periods of services.
The following tables present a roll-forward of other long-term benefit liability for the six-month periods
(in millions of Korean won) Six-month periods ended June 30,
2018 2017
Current service costs 268 322
Interest cost 87 87
Actuarial losses (gains) 185 (92)
Benefits paid (641) (596)

(Unaudited)
June 30, 2018
30 (Continued)
14. Provisions
Provisions include the allowance for unused loan commitments, residual value guarantees, asset
retirement obligations and others. A similar approach to the allowance for loan losses is used for
calculating a reserve for the estimated credit losses related to unused loan commitments.
The following tables present a roll-forward of the provisions for the six-month periods ended June
30, 2018 and 2017:
(*1) The Group facilitates credits with limits, under which the Group provides commitments to
extended credits. Provision is made for estimated losses arising from unused loan commitments.
(*2) The Group facilitates certain installment financial receivable products which the Group
guarantees residual value of used automobiles for consumers. The Group also contracts with 3rd
party
guarantor to guarantee residual value of automobiles returned by consumers. Provision is made for
estimated expected losses arising from these residual value guarantees.
(*3) The Group recognizes provisions for restoration costs which represent the estimated costs to
restore the existing leased properties which are discounted to the present value using the appropriate
discount rate at the end of the reporting period. Disbursements of such costs are expected to occur at
the end of the lease contract. Such costs are reasonably estimated using the average lease term and the
average restoration expenses. The average lease term is calculated based on the past three-year historical
data of the expired leases. The average restoration expense is calculated based on the actual costs
incurred for the past three years using the five-year average inflation rate. The present value of AROs
is capitalized to the acquisition cost of leasehold improvements in fixture and furniture and are
depreciated over the useful life of the assets.
Unused Residual Asset
loan value retirement
commit- guaran- obliga-
ments (*1) tees (*2) tions (*3) Total
Opening balance W 1,277 45,967 2,652 49,896
Provision for (release of) allowance (64) (5,677) (178) (5,919)
Provisions made for AROs and
capitalized to related assets (*3) — — 822 822
Unwinding of interests — — 36 36
Closing balance W 1,213 40,290 3,332 44,835
Unused Residual Asset
loan value retirement
commit- guaran- obliga-
ments (*1) tees (*2) tions (*3) Total
Opening balance W 1,185 35,078 4,525 40,788
Provision for (release of) allowance 1,005 (2,728) (477) (2,200)
Provisions made for AROs and
capitalized to related assets (*3) — — 181 181
Unwinding of interests — — 24 24
Closing balance W 2,190 32,350 4,253 38,793

(Unaudited)
June 30, 2018
31 (Continued)
15. Derivative Financial Instruments and Hedge Accounting
(1) Trading derivatives
The Group had no balance of trading derivatives as of June 30, 2018 and December 31, 2017.
(2) Derivatives designated and qualifying as hedging instruments
In the normal course of business, the Group enters into derivative contracts to manage its exposures
to changes in future cash flows arising from volatilities in interest rate and foreign currency exchange
rates with its borrowings and bonds issued. The Group primarily uses interest rate swaps and currency
swaps to manage exposures to fluctuations in future cash flows due to interest rate risk and foreign
exchange risk. The Group also utilizes currency forward contracts to manage exposures to fluctuation
in future cash flows related to its lease contracts denominated in foreign currencies. There was no
change in overall strategy of the Group for cash flow hedges.
The hedge ratio of nominal cash flows regarding cash flow hedge as of June 30, 2018 are as
follows:
Details of cash flow hedged items as of June 30, 2018 are as follows:
Derivatives that are designated and qualifying as hedging instruments for cash flow hedges as of
June 30, 2018 and December 31, 2017 are as follows:
(*1) Notional principal amount represents Korean won equivalent amounts of foreign currencies
for won-to-foreign currency transactions and receiving foreign currencies for foreign currency-to-
foreign currency transactions that are translated with the benchmark foreign currency exchange rate
disclosed by the Bank of Korea as of the reporting date.
Less than Less than Less than Less than Less than Over
(in millions of Korean won) one year two years three years four years five years five years Total
Carrying amount of
Hedged item W 2,472,499 1,610,311 1,791,046 1,062,800 2,301,157 496,510 9,734,323
hedging instrument 2,472,499 1,610,311 1,791,046 1,062,800 2,301,157 496,510 9,734,323
Hedge ratio 100% 100% 100% 100% 100% 100% 100%
(in millions of June 30, 2018
Korean won) Accumulated other
Carrying amount Line item Changes in comprehensive
Assets Liabilities in the financial statements fair value income (loss)
Interest rate risk W — 3,610,000 Borrowings and Bonds issued — (5,387)
Foreign exchange risk — 6,124,323 Bonds issued 222,590 (96,881)
W — 9,734,323 222,590 (102,268)
Notional Line item
principal Carrying amount in the financial Changes in
amount (*1) Assets Liabilities statements fair value
Interest rate swaps W 3,610,000 3,891 10,998 Derivative (12,031)
Currency swaps 6,124,323 35,100 261,258 assets (liabilities) 102,937
W 9,734,323 38,991 272,256 90,906

(Unaudited)
June 30, 2018
32 (Continued)
(*1) Notional principal amount represents Korean won equivalent amounts of foreign currencies
for won-to-foreign currency transactions and receiving foreign currencies for foreign currency-to-
foreign currency transactions that are translated with the benchmark foreign currency exchange rate
disclosed by the Bank of Korea as of the reporting date.
Changes in effective portion of cash flow hedges for the six-month periods ended June 30, 2018
and 2017 are as follows:
The Group is expected to be exposed to the variability in future cash flows arising from hedged
items designated as cash flow hedges, until August 29, 2027. There was no cash flow hedges
discontinued during the six-month periods ended June 30, 2018 and 2017.
There was no ineffective portion recognized in profit or loss related to cash flow hedge for the six-
month periods ended June 30, 2018 and 2017.
Accumulated
Notional other
principal comprehensive
amount (*1) Assets Liabilities income (loss)
Interest rate swaps W 2,330,000 6,623 1,698 3,733
Currency swaps 5,919,284 18,047 362,236 (3,093)
W 8,249,284 24,670 363,934 640
Changes
in fair value
recognized
in other Reclassified
Opening comprehensive to Closing
balance income profit or loss balance
Effective portion of cash flow hedges W 844 90,906 (226,668) (134,918)
Income tax effects (204) 32,650
Effective portion of cash flow hedges,
net of income taxes W 640 (102,268)
Changes
in fair value
recognized
in other Reclassified
Opening comprehensive to Closing
balance income profit or loss balance
Effective portion of cash flow hedges W (42,154) (218,030) 238,197 (21,987)
Income tax effects 10,202 5,322
Effective portion of cash flow hedges,
net of income taxes W (31,952) (16,665)

(Unaudited)
June 30, 2018
33 (Continued)
16. Equity
(1) Regulatory reserve for loan losses
In accordance with the Article 11 of Regulation on Supervision of Specialized Credit Finance
Business mandated by the Financial Services Commission, the Group appropriates regulatory reserves
for loan losses which equal to the difference between allowance for loan losses estimated under K-IFRS
and allowance estimated based on regulatory risk grades of loans and receivables and minimum required
reserve ratio to each grade.
Details of regulatory reserve for loan losses as of June 30, 2018 and December 31, 2017 are as
follows:
(*1) Regulatory reserve for loan losses as of June 30, 2018 and December 31, 2017 represents the
amount which reflects the expected release of regulatory reserve for loan losses to appropriated
regulatory reserve for loan losses at the beginning of the year.
Release of regulatory reserve for loan losses and profit for the period and earnings per share
adjusted with release of regulatory reserve for loan losses for the six-month periods ended June 30,
2018 and 2017 are as follows:
(*1) Provision for (release of) regulatory reserve for loan losses represents additional (excess)
reserves expected to be made (released) for the six-month periods ended June 30, 2018 and 2017.
(*2) Profit for the period adjusted with release of regulatory reserve for losses is not prepared in
accordance with K-IFRS, but the amount reflects the expected release of regulatory reserve for loan
losses on a pre-tax basis on profit for the period.
2018 2017
Appropriated regulatory reserve for loan losses W 211,999 208,844
Effects of the changes in accounting policies (66,899) —
Expected provision for (release of)
regulatory reserve for loan losses 9,255 3,155
Regulatory reserve for loan losses (*1) W 154,355 211,999
Profit for the year W 186,437 162,334
Less (add): provision for (release of)
regulatory reserve for loan losses (*1) 9,255 (6,784)
Profit for the period adjusted with provision for
(release of) regulatory reserve for loan losses (*2) W 177,182 169,118
Basic and diluted earnings per share
adjusted with provision for (release of)
regulatory reserve for loan losses (in won) W 1,784 1,703

(Unaudited)
June 30, 2018
34 (Continued)
(2) Retained earnings
Details of retained earnings as of June 30, 2018 and December 31, 2017 are as follows:
(*1) Korean Commercial Act requires the Company to appropriate, as a legal reserve, an amount
equal to a minimum of 10% of annual cash dividends declared, until the reserve equals 50% of its issued
capital. The reserve is not available for the payment of cash dividends, but may be transferred to capital
stock or used to reduce accumulated deficit, if any.
2018 2017
Legal reserves:
Earned surplus reserve (*1) W 149,433 140,923
Discretionary reserves:
Regulatory reserve for loan losses 211,999 208,844
Reserve for electronic financial transactions 100 100
Reserve for business rationalization 74 74
212,173 209,018
Retained earnings before appropriation 2,870,302 2,814,138
W 3,231,908 3,164,079

(Unaudited)
June 30, 2018
35 (Continued)
17. Net Interest Income
Net interest income for the six-month periods ended June 30, 2018 and 2017 are as follows:
(*1) Including amortization of unearned revenue for security deposits received for leases under the
effective interest method.
(*2) Including amortization of present value discounts under the effective interest method for the
security deposits paid for leased offices, amortization of present value discounts for customer deposits
received for leases and unwinding of provisions.
18. Net Fee Income
Net fee income for the six-month periods ended June 30, 2018 and 2017 are as follows:
(in millions of Korean won) Three-month periods Six-month periods
2018 2017 2018 2017
Interest income:
Interest income recognized by using the effective interest method
Cash and due from other financial institutions W 6,675 5,044 13,514 9,163
Available-for-sale securities — 303 — 601
Securities measured at FVOCI 95 — 151 —
Loans receivable 233,299 224,076 476,892 449,069
Installment financial assets 121,760 113,545 243,621 225,547
Lease receivables (*1) 39,171 38,673 81,634 77,744
Other (*2) 137 166 320 299
401,137 381,807 816,132 762,423
Interest expense:
Borrowings 16,684 10,746 31,867 19,056
Bonds issued 120,501 120,156 238,437 241,776
Other (*2) 2,495 3,704 5,022 6,813
139,680 134,606 275,326 267,645
Net interest income W 261,457 247,201 540,806 494,778
Three-month periods ended June 30, Six-month periods ended June 30,
(in millions of Korean won) 2018 2017 2018 2017
Fee income:
Loans receivable W 6,449 7,721 13,110 15,070
Installment financial assets 4,411 3,709 8,690 7,645
Lease receivables 39,916 35,512 74,540 72,864
50,776 46,942 96,340 95,579
Fee expenses:
Lease expenses 20,085 24,491 44,776 45,049
Net fee income W 30,691 22,451 51,564 50,530

(Unaudited)
June 30, 2018
36 (Continued)
19. Other Operating Income and Expenses
Other operating income and expenses for the six-month periods ended June 30, 2018 and 2017 are
as follows:
20. General and Administrative Expenses
General and administrative expenses for the six-month periods ended June 30, 2018 and 2017 are
as follows:
Other operating income:
Gain on valuation of derivatives W 215,941 41,705 230,623 41,705
Gain on derivatives transactions 1,640 — 5,456 —
Gain on short-term financial investments 291 822 887 2,238
Gain on purchased loan 9,749 10,653 19,866 19,718
Shared services income 4,932 5,635 12,462 13,408
Other fee and commission 17,259 12,605 33,441 27,972
Other 2,500 10,153 5,642 12,290
W 252,312 81,573 308,377 117,331
Other operating expenses:
Loss on valuation of derivatives W (25,031) (116,587) 8,033 214,885
Loss on derivatives transactions 929 11,579 1,378 65,017
Shared services expense 6,455 5,564 16,243 14,321
Other 5,172 7,843 19,847 17,336
W (12,475) (91,601) 45,501 311,559
Salaries W 54,575 56,618 107,021 106,741
Severance benefits 7,208 4,205 11,236 8,410
Employee benefits 8,807 8,075 19,394 18,680
Advertising 16,450 15,124 30,341 28,605
Sales promotion 15,198 17,374 32,508 34,730
Rents 9,967 10,299 20,299 20,912
Utilities 2,525 2,578 5,338 5,340
Communication 3,709 3,240 6,976 6,562
Travel and transportation 1,522 1,816 2,644 3,463
Professional and other service fees 19,790 18,350 38,612 38,390
Outsourcing service charges 8,852 8,604 17,529 17,232
Commissions and charges 3,129 3,313 10,933 9,112
Depreciation 6,020 6,165 12,086 12,036
Amortization 10,770 9,925 21,440 19,391
Other 9,937 12,786 22,705 28,417
W 178,459 178,472 359,062 358,021

(Unaudited)
June 30, 2018
37 (Continued)
21. Income Taxes
(1) Income tax expense
Income tax expense for the six-month periods ended June 30, 2018 and 2017 are as follows:
(2) Deferred income taxes recognized directly to equity
Deferred income taxes recognized directly to equity for the six-month periods ended June 30, 2018
and 2017 are as follows:
Current income tax expense W 37,176 40,782
Change in deferred income tax due to temporary differences (3,236) 13,006
Deferred income taxes recognized directly to equity 28,019 (3,434)
Income tax expense W 61,959 50,354
Opening Closing
balance balance Changes
Unrealized gains and losses on
equity securities measured at FVOCI W (3,517) (4,469) (952)
Unrealized gains and losses on valuation
of debt securities measured at FVOCI (1) (21) (20)
of associates under the equity method 9,488 5,932 (3,556)
Effective portion of cash flow hedges (204) 32,650 32,854
Remeasurements of defined benefit plans 5,260 4,953 (307)
W 11,026 39,045 28,019
Opening Closing
balance balance Changes
Unrealized gains and losses on valuation
of available-for-sale securities W (3,276) (3,901) (625)
of associates under the equity method 3,930 6,338 2,408
Effective portion of cash flow hedges 10,202 5,322 (4,880)
Remeasurements of defined benefit plans 7,719 7,382 (337)
W 18,575 15,141 (3,434)

(Unaudited)
June 30, 2018
38 (Continued)
(3) Effective tax rate reconciliation
Income tax expense attributable to net income was W61,959 million and W50,354 million for the
six-month periods ended June 30, 2018 and 2017, respectively, and differed from the amounts computed
by applying the statutory tax rate to profit before income taxes as a result of the following:
22. Earnings Per Share
(1) Basic earnings per share
Basic earnings per share attributable to common stock of equity holders for the six-month periods
ended June 30, 2018 and 2017 are as follows:
(2) Diluted earnings per share
There are no potential common stocks as of June 30, 2018 and 2017. Therefore, the diluted earnings
per share is equal to basic earnings per share for the six-month periods ended June 30, 2018 and 2017.
Profit before income taxes (A) W 248,396 212,688
Income taxes at statutory tax rates 59,650 51,008
Adjustments:
Non-deductible expense 85 80
Changes in estimates for tax provisions of the prior year (13,176) (153)
Others including tax credits and foreign subsidiaries 15,400 (581)
Income tax expense (B) W 61,959 50,354
Effective tax rate (B/A) 24.94% 23.68%
2018 2017 2018 2017
Profit for the year attributable
to owners of the Company (in won) (A) W 107,383,443,035 76,421,097,790 191,341,669,515 166,664,667,168
Weighted average of number of
outstanding common stocks (B) 99,307,435 99,307,435 99,307,435 99,307,435
Basic earnings per share (in won) (A/B) W 1,081 770 1,927 1,678

(Unaudited)
June 30, 2018
39 (Continued)
23. Other Comprehensive Income
Other comprehensive income for the six-month periods ended June 30, 2018 and 2017 are as
follows:
Changes
Reclassifi-
Opening cation to Other Income tax Closing
balance profit or loss changes effects balance
Net change in unrealized
gains and losses on equity
securities measured at FVOCI W 11,016 — 3,935 (952) 13,999
gains and losses on valuation of
debt securities measured at FVOCI 3 (31) 123 (22) 73
Share in other comprehensive
income (loss) of associates
under the equity method (29,718) — 14,693 (3,556) (18,581)
Net change in effective portion
of cash flow hedges 640 (226,668) 90,906 32,854 (102,268)
translation adjustments (3,773) — 587 — (3,186)
Remeasurements of
defined benefit plans (16,477) — 1,268 (307) (15,516)
W (38,309) (226,699) 111,512 28,017 (125,479)
Changes
Reclassifi-
Opening cation to Other Income tax Closing
balance profit or loss changes effects balance
gains and losses on
available-for-sale securities W 10,264 (63) 2,642 (625) 12,218
Share in other comprehensive
income (loss) of associates
under the equity method (12,309) — (9,949) 2,408 (19,850)
Net change in effective portion
of cash flow hedges (31,952) 238,197 (218,030) (4,880) (16,665)
translation adjustments (2,942) — 6,195 — 3,253
Remeasurements of
defined benefit plans (24,179) — 1,393 (337) (23,123)
W (61,118) 238,134 (217,749) (3,434) (44,167)

(Unaudited)
June 30, 2018
40 (Continued)
24. Supplemental Cash Flow Information
(1) Cash and cash equivalents
Details of cash and cash equivalents as of June 30, 2018 and December 31, 2017 are as follows:
(*1) Other cash equivalents include demand deposits, certificate of deposits, time deposits,
commercial paper, repurchase agreements and other debt instruments with maturities of three months
or less from the acquisition date that are readily convertible to known amounts of cash which are subject
to an insignificant risk of changes in their fair value, and are used by the Group in the management of
its short-term commitments.
(*2) Other cash equivalents include restricted cash at reserve accounts of Autopia ABS trusts due
from other banks in the amount of W10,200 million and W13,900 million as of June 30, 2018 and
December 31, 2017, respectively, for the Autopia asset securitization program.
2018 2017
Ordinary deposits W 263,642 239,028
Checking deposits 1,653 1,980
Other cash equivalents (*1)(*2) 661,623 368,502
W 926,918 609,510

(Unaudited)
June 30, 2018
41 (Continued)
(2) Cash generated from operations
Cash generated from operations for the six-month periods ended June 30, 2018 and 2017 are as
follows:
Profit for the period W 186,437 162,334
Adjustments:
Gain on sale of available-for-sale securities — (462)
Gain on sale of securities measured at FVTPL (428) —
Gain on sale of debt securities measured at FVOCI (251) —
Loss on valuation of securities measured at FVTPL 5 —
Income on loans 37,290 31,231
Income on installment financial assets 39,795 32,190
Income on leases 15,174 19,768
Gain on foreign currency translation (8,664) (214,885)
Dividend income (5,271) (2,080)
Gain on valuation of derivatives (230,623) (41,705)
Gain on valuation of short-term financial investments (887) (2,238)
Impairment loss on available-for-sale securities — 100
Net interest expenses 261,340 257,582
Lease expenses 199,064 192,114
Provision for loan losses 191,555 141,416
Loss on foreign currency translation 230,623 41,735
Severance benefits 7,672 8,402
Long-term employee benefits 540 317
Depreciation 12,086 12,036
Amortization 21,440 19,391
Loss on valuation of derivatives 8,033 214,885
Release of allowance (5,919) (2,200)
Share in net income of associates under the equity method (36,196) (42,375)
Gain on sale of property and equipment (28) (86)
Share in net loss of associates under the equity method — 3
Reversal of impairment loss on debt securities measured at FVOCI (7) —
Loss on sale of property and equipment 89 8
Income tax expense 61,959 50,354
798,391 715,501

(Unaudited)
June 30, 2018
42 (Continued)
Changes in operating assets and liabilities:
Decrease (increase) in due from banks 60,306 (1,083)
Decrease (increase) in short-term financial investments 557,615 (430,673)
Increase in available-for-sale securities — (3,046)
Decrease in securities measured at FVTPL 4,516 —
Increase in securities measured at FVOCI (643) —
Increase in loans receivable (691,671) (551,102)
Increase in installment financial assets (870,072) (178,925)
Increase in finance lease receivables (349,234) (133,971)
Decrease in cancelled lease receivables 3,389 2,510
Increase in operating lease assets (224,128) (302,136)
Decrease in cancelled lease assets 237,651 254,755
Decrease (increase) in non-trade receivables (26,821) 28,231
Decrease (increase) in accrued revenues (8,309) 16,291
Increase in advance payments (41,472) (8,582)
Increase in prepaid expenses (25,208) (21,853)
Increase in non-trade payables 54,802 6,254
Increase in accrued expenses 6,619 3,746
Decrease in unearned revenue (582) (3,542)
Increase (decrease) in withholdings 41,056 (29,906)
Decrease in deposits received (46,151) (4,215)
Severance payments 46 328
Transfer of severance benefits from (to) related parties, net 15 (836)
Decrease in long-term employee benefits (641) (596)
Decrease in provisions — (10)
(1,318,917) (1,358,361)
W (334,089) (480,526)

(Unaudited)
June 30, 2018
43 (Continued)
(3) Changes in liabilities arising from financing activities
Changes in liabilities and assets that hedge liabilities arising from financing activities for the six-
month periods ended June 30, 2018 and 2017 are as follows:
(in millions of Six-month period ended June 30, 2018
Korean won) Non-cash changes
Changes in
foreign
Opening Net exchange Changes in Other Closing
balance cash flows rates fair value changes balance
Borrowings W 2,872,860 601,611 2,399 — 57 3,476,927
Bonds issued 19,142,152 512,872 222,590 — 7,271 19,884,885
Net liabilities (assets)
held to hedge
borrowed funds 339,264 (19,171) (222,590) 135,762 — 233,265
W 22,354,276 1,095,312 2,399 135,762 7,328 23,595,077
(in millions of Six-month period ended June 30, 2017
Korean won) Non-cash changes
Changes in
foreign
Opening Net exchange Changes in Other Closing
balance cash flows rates fair value changes balance
Borrowings W 1,552,182 382,533 — — 47 1,934,762
Bonds issued 18,525,460 715,377 (173,180) — 8,512 19,076,169
Net liabilities (assets)
held to hedge
borrowed funds (118,632) (17,587) 173,180 (20,167) — 16,794
W 19,959,010 1,080,323 — (20,167) 8,559 21,027,725

(Unaudited)
June 30, 2018
44 (Continued)
25. Commitments and Contingencies
(1) Line of credit commitments
As of June 30, 2018, the Group has line-of-credit commitments from Shinhan Bank and KEB Hana
Bank with aggregated limits in the amount of W33,500 million. The Group also has revolving credit
facility agreements amounted to USD 340 million, JPY 80,000 million, EUR 665 million and
W2,545,000 million with Kookmin Bank and 40 other financial institutions.
The Group offers line-of-credit commitments to a number of customers. The unused amount of
line-of-credit is W865,000 million as of June 30, 2018.
(2) Guarantees
Details of guarantees provided to the Group as of June 30, 2018 and December 31, 2017 are as
follows:
The Group has residual value guarantee insurance policies with KB Insurance Co., Ltd. and two
other insurance carriers which cover losses resulting from defaults in mortgage loans where unpaid
amounts exceed the recoverable amounts from the collateral of the loans and cover losses resulting from
sales of off-lease vehicles returned where the expected residual values exceed the recoverable amounts
at the end of the lease terms. Loans and leases insured by the policies and residual value guaranteed by
the insurance policies as of June 30, 2018 and December 31, 2017 are as follows:
Guarantor Details 2018 2017
Seoul Guarantee Guarantee for debt collection
Insurance Co., Ltd. deposit and others W 36,806 43,161
2018 2017
Loans and leases insured W 906,248 845,005
Residual value guaranteed by the insurance policies 210,246 184,429

(Unaudited)
June 30, 2018
45 (Continued)
(3) Pending litigations
Pending litigations include 22 cases with aggregated claim amounts of W7,939 million and RUB
0.2 million where the Group is the defendant, 26 cases with aggregated claim amount of W2,342 million
and INR 5 million where the Group is the plaintiff, and litigations against a number of debtors to collect
receivables as of June 30, 2018.
Management has reviewed legal claims against the Group with outside legal counsels and has taken
into consideration the views of such counsel as to the outcome of the claims. In management’s opinion,
the final disposition of all such claims will not have a material adverse effect on the Group’s financial
position or results of its operations.
(4) Receivables transfer agreement
The Group entered into an agreement with Hyundai Card Co., Ltd., Hyundai Commercial Co., Ltd.,
and Hyundai Life Insurance Co., Ltd., to purchase certain delinquent receivables on a regular basis at
amount agreed with the transferors.
(5) Borrowed funds agreement
As of June 30, 2018, the Group has agreements including trigger clauses regarding borrowed funds,
W2,010,000 million for creditors’ credit enhancement. When the Group’s credit rating declines below
certain level, the Group is required for advanced redemption or agreements with creditors can be invalid
or cancelled.
(6) Purchase option
The Group can exercise the purchase option regarding the headquarters building which the Group
is leasing when the lessor intends to sell the building or at the date when it is 4 years and 5 months from
a lease start date. In case a party with pre-emption decide not to exercise purchase option for the building,
then the Group can exercise its purchase option.

(Unaudited)
June 30, 2018
46 (Continued)
26. Related Party Transactions
(1) Relationships between parents and subsidiaries
The Company’s parent company is Hyundai Motor Company. Related parties include associates,
joint ventures, post-employment benefit plans, members of key management personnel and entities
which the Group controls directly or indirectly, or has joint control or significant influence over.
(2) Related parties
Related parties that have transactions, and receivables and payables with the Group as of June 30,
2018 is as follows:
Type Company
The Parent Hyundai Motor Company
Associates Korea Credit Bureau, and Beijing Hyundai Auto Finance Co,. Ltd.
Others Kia Motors Corp., Hyundai Card Co., Ltd., Hyundai Commercial Inc.,
Hyundai Glovis Co., Ltd., Hyundai Autoever Corp., Hyundai Life Insurance Co., Ltd.,
Hyundai Construction & Engineering Co., Ltd.,Hyundai Steel Company,
Hyundai Engineering Co., Ltd., Hyundai Mobis Co., Ltd.,
Hyundai Capital America and 40 others

(Unaudited)
June 30, 2018
47 (Continued)
(3) Transactions with related parties
Transactions with related parties occurred in the normal course of business, and the terms and
conditions include normal settlement terms.
Significant transactions occurred with related companies for the six-month periods ended June 30,
2018 and 2017 are as follows:
(*1) Including provision for (release of) loan losses.
Purchase of
Operating Operating Non-operating Disposal of Purchase of loans and
revenue expenses(*1) income leased assets leased assets receivables Others(*2)
The Parent
Hyundai Motor Company W 43,725 569 — — 381,985 — —
Associates
Korea Credit Bureau — 876 — — — — —
Beijing Hyundai Auto Finance Co., Ltd. 5 — — — — — —
5 876 — — — — —
Other related parties
Kia Motors Corp. 33,601 140 — — 207,324 — —
Hyundai Card Co., Ltd. 27,669 15,223 996 — — 79,228 —
Hyundai Commercial Inc. 855 1,596 407 — — 50,186 —
Hyundai Glovis Co., Ltd. 198 1,868 — 52,366 — — —
Hyundai Autoever Corp. 132 16,443 — — — — 6,959
Hyundai Capital America 14,672 (118) — — — — —
Hyundai Life Insurance Co., Ltd. 50 4,359 26 — — 7,919 —
Hyundai Engineering Co., Ltd. 493 4,456 4 — — — —
Hyundai Construction & Engineering Co., Ltd. 1,018 24 — — — — —
Hyundai Mobis Co., Ltd. 483 93 — — — — —
Hyundai Steel Company 1,347 5 — — — — —
Others 17,026 1,083 — — — — —
97,544 45,172 1,433 52,366 207,324 137,333 6,959
W 141,274 46,617 1,433 52,366 589,309 137,333 6,959
Purchase of
Operating Operating Non-operating Disposal of Purchase of loans and
revenue expenses(*1) income leased assets leased assets receivables Others(*2)
The Parent
Hyundai Motor Company W 36,078 391 — — 336,894 — —
Associates
Korea Credit Bureau — 143 — — — — —
Beijing Hyundai Auto Finance Co., Ltd. 40 — — — — — —
40 143 — — — — —
Kia Motors Corp. 29,482 147 — — 131,251 — —
Hyundai Card Co., Ltd. 21,224 13,524 1,028 — — 77,225 —
Hyundai Commercial Inc. 709 1,561 378 — — 67,752 —
Hyundai Glovis Co., Ltd. 194 2,430 — 38,766 — — —
Hyundai Autoever Corp. 120 18,239 — — — — 6,801
Hyundai Capital America 14,247 (200) — — — — —
Hyundai Life Insurance Co., Ltd. 148 5,283 71 — — 5,921 —
Hyundai Engineering Co., Ltd. 532 3,467 4 — — — —
Hyundai Construction & Engineering Co., Ltd. 1,072 (21) 40 — — — 2,486
Hyundai Mobis Co., Ltd. 398 1,135 — — — — —
Hyundai Steel Company 1,337 (23) — — — — —
Others 3,172 2,241 8 — — — —
72,635 47,783 1,529 38,766 131,251 150,898 9,287
W 108,753 48,317 1,529 38,766 468,145 150,898 9,287

(Unaudited)
June 30, 2018
48 (Continued)
Receivables and payables with related parties as of June 30, 2018 and December 31, 2017 are as
follows:
(*1) Other assets include plan assets of W101,683 million and W105,729 million as of June 30,
2018 and December 31, 2017, respectively, related to the Group’s defined benefit plan.
(in millions of Korean won)
Lease Other Other
receivables Allowance assets Allowance liabilities
The Parent
Hyundai Motor Company W 113 (1) 7,762 (75) 27,921
Hyundai Life Insurance Co., Ltd. (*1) 175 (1) 104,237 — 27
Hyundai Card Co., Ltd. 696 (3) 3,071 (24) 39,522
Hyundai Construction & Engineering Co., Ltd. 5,065 (36) — — —
Hyundai Glovis Co., Ltd. 899 (4) 5,488 (27) 6
Kia Motors Corp. — — 5,836 (58) 91,106
Hyundai Capital America — — 15,304 (153) —
Hyundai Steel Company 7,214 (15) 186 — —
Hyundai Commercial Inc. 373 (2) 2 — 399
Hyundai Autoever Corp. 631 (1) 1 — 2,360
Hyundai Mobis Co., Ltd. 2,653 (5) 19 — 16
Hyundai Engineering Co., Ltd. 2,325 (5) 2 — 1,355
Others 5,733 (18) 9,369 — 221
25,764 (90) 143,515 (262) 135,012
W 25,877 (91) 151,277 (337) 162,933
June 30, 2018
(in millions of Korean won)
Lease Other Other
receivables Allowance assets Allowance liabilities
The Parent
Hyundai Motor Company W 220 (1) 6,867 (68) 23,097
Other related partiies
Hyundai Life Insurance Co., Ltd. (*1) 286 (1) 112,476 — 27
Hyundai Card Co., Ltd. 814 (4) 2,062 (14) 48,501
Hyundai Construction & Engineering Co., Ltd. 4,796 (12) — — —
Hyundai Glovis Co., Ltd. 908 (4) 4,185 (21) 6
Kia Motors Corp. — — 5,515 (55) 42,216
Hyundai Capital America — — 27,108 (271) —
Hyundai Steel Company 5,822 (11) 218 — —
Hyundai Commercial Inc. 376 (2) 3 — 403
Hyundai Autoever Corp. 600 (1) — — 26
Hyundai Mobis Co., Ltd. 2,237 (3) 16 — 21
Others 7,731 (32) 9,543 — 4,757
23,570 (70) 161,126 (361) 95,957
W 23,790 (71) 167,993 (429) 119,054
December 31, 2017

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