Edgar Filing: WOORI FINANCIAL GROUP INC.

Form 6-K

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 6-K

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16

UNDER THE SECURITIES EXCHANGE ACT OF 1934

For the month of March 2019

Woori Financial Group Inc.

(Translation of registrant’s name into English)

51, Sogong-ro, Jung-gu, Seoul, 04632, Korea

(Address of principal executive office)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

Form 20-F ☒ Form 40-F ☐

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ☐

Note: Regulation S-T Rule 101(b)(1) only permits the submission in paper of a Form 6-K if submitted solely to provide an attached annual report to security holders.

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ☐

Note: Regulation S-T Rule 101(b)(7) only permits the submission in paper of a Form 6-K if submission to furnish a report or other document that the registration foreign private issuer must furnish and make public under the laws of the jurisdiction in which the registrant is incorporated, domiciled or legally organized (the registrant’s “home country”), or under the rules of the home country exchange on which the registrant’s securities are traded, as long as the report or other document is not a press release, is not required to be and has not been distributed to the registrant’s security holders, and if discussing a material event, has already been the subject of a Form 6-K submission or other Commission filing on EDGAR.

LOGO

51, Sogong-ro,

Jung-gu, Seoul, 04632 Korea

March 7, 2019

To Shareholders:

Convocation Notice of the Annual General Meeting of Shareholders

Notice is hereby given that an Annual General Meeting of Shareholders of Woori Bank (the “Company”) will be held as described hereunder and your attendance is cordially requested.

Very truly yours,

Tae Seung Sohn

President and CEO

Woori Bank

51, Sogong-ro, Jung-gu

Seoul 04632, Korea

Description


1. Date and Time		March 27, 2019; 10 A.M. (Local time)

2. Venue		Synergy Hall, 5th floor, Woori Bank, 51, Sogong-ro, Jung-gu, Seoul, Korea

3. Agenda		1. Approval of financial statements for the fiscal year 2018 2. Appointment of standing director - Candidate for standing director : Jung-Sik Oh 3. Appointment of audit committee member who is not an outside director - Candidate for audit committee member who is not an outside director : Jung-Sik Oh 4. Approval of the maximum limit on directors’ compensation

Reference Document for the Exercise of Voting Rights

1.	Approval of financial statements for the fiscal year 2018

Please refer to Appendix A.

The consolidated and separate financial statements in Appendix A have not yet been audited and are subject to change. For the audited financial statements, please refer to the Audit Reports to be furnished to the U.S. Securities and Exchange Commission as an exhibit to the Form 6-K.

2.	Appointment of standing director

Name

(Date of Birth)

Experience

Nominated by

Relationship
with the
Majority
Shareholder

Transactions
with the
Company
within the past
three years

Term

Jung-Sik Oh

(Jul. 17, 1956)

– Current) Standing Director, Woori Bank

- CEO, KB Capital

- Executive Vice President, Head of Commercial Business, Citibank

Officer Candidate Recommendation Committee

None

Note 1)

From the time of appointment at the AGM held in Mar. 2019 to the end of the AGM held in Mar. 2020

3.	Appointment of audit committee member who is not an outside director

Name

(Date of Birth)

Experience

Nominated by

Relationship
with the
Majority
Shareholder

Transactions
with the
Company
within the past
three years

Term

Jung-Sik Oh

(Jul. 17, 1956)

– Current) Standing Director, Woori Bank

- CEO, KB Capital

- Executive Vice President, Head of Commercial Business, Citibank

Officer Candidate Recommendation Committee

None

Note 1)

From the time of appointment at the AGM held in Mar. 2019 to the end of the AGM held in Mar. 2020

4.	Approval of directors’ compensation limit


Item	2018	2019
Number of Directors (Number of Outside Directors)	8 (5)	8 (5)

Compensation Limit	3.2 billion won	3.2 billion won

*	Allocation within the total compensation limit delegated to the board of directors (Board Compensation Committee).

Appendix A. Financial Statements for FY2018

For further information, please refer to the Audit Reports to be furnished to the U.S. Securities and Exchange Commission as an exhibit to the Form 6-K. The Audit Reports will be available on the U.S. Securities and Exchange Commission website at www.sec.gov.

WOORI BANK AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

AS OF DECEMBER 31, 2018 AND 2017


	December 31, 2018 (*)		December 31, 2017 (*)
	(Korean Won in millions)
ASSETS
Cash and cash equivalents (Note 6)		6,712,623		6,908,286
Financial assets at fair value through profit or loss (“FVTPL”) (K-IFRS 1109) (Notes 4, 7, 11, 12, 18 and 26)		6,126,183		—
Financial assets at FVTPL (K-IFRS 1039) (Notes 4, 7, 11, 12, 18 and 26)		—		5,843,077
Financial assets at financial assets at fair value through other comprehensive income(“FVTOCI”) (Notes 4, 8, 11, 12, and 18)		18,063,423		—
Available-for-sale (“AFS”) financial assets (Notes 4,8,11,12 and 18)		—		15,352,950
Securities at amortized cost (Notes 4, 9, 11, 12 and 18)		22,932,559		—
Held to maturity (“HTM”) financial assets (Notes 4, 9, 11, 12 and 18)		—		16,749,296
Loans and other financial assets at amortized cost (Notes 4, 10, 11, 12, 18 and 45)		282,448,315		—
Loans and receivables (Notes 4,10,11,12,18 and 45)		—		267,106,204
Investments in joint ventures and associates (Note 13)		361,427		417,051
Investment properties (Note 14)		378,069		371,301
Premises and equipment (Notes 15 and 18)		2,441,141		2,477,545
Intangible assets and goodwill (Note 16)		587,255		518,599
Assets held for sale (Note 17)		93,502		48,624
Current tax assets (Note 42)		20,488		4,722
Deferred tax assets (Note 42)		49,863		280,130
Derivative assets (Designated for hedging) (Notes 4,11,12 and 26)		35,503		59,272
Other assets (Notes 19 and 45)		196,832		158,404

Total assets		340,447,183		316,295,461

LIABILITIES
Financial liabilities at FVTPL (K-IFRS 1109) (Notes 4, 11, 12, 20 and 26)		2,282,686		—
Financial liabilities at FVTPL (K-IFRS 1039) (Notes 4, 11, 12, 20 and 26)		—		3,427,909
Deposits due to customers (Notes 4,11,21 and 45)		248,690,939		234,695,084
Borrowings (Notes 4, 11, 12 and 22)		16,202,986		14,784,706
Debentures (Notes 4, 11 and 22)		28,725,862		27,869,651
Provisions (Notes 23, 44 and 45)		389,862		410,470
Net defined benefit liability (Note 24)		138,682		43,264
Liabilities of a disposal group classified as held for sale (Note 17)		72,660		—
Current tax liabilities (Note 42)		156,559		232,600
Deferred tax liabilities (Note 42)		18,156		22,681
Derivative liabilities (Designated for hedging) (Notes 4,11,12 and 26)		51,409		67,754
Other financial liabilities (Notes 4,11,12, 25 and 45)		21,426,064		13,892,461
Other liabilities (Notes 25 and 45)		338,274		283,981

Total liabilities		318,494,139		295,730,561

(Continued)

WOORI BANK AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

AS OF DECEMBER 31, 2018 AND 2017 (CONTINUED)


	December 31, 2018 (*)			December 31, 2017 (*)
	(Korean Won in millions)
EQUITY
Owners’ equity:		21,739,931			20,365,892
Capital stock (Note 28)		3,381,392			3,381,392
Hybrid securities (Note 29)		3,161,963			3,017,888
Capital surplus (Note 28)		285,889			285,880
Other equity (Note 30)		(2,213,970	)		(1,939,274	)
Retained earnings (Notes 31 and 32)
(Regulatory reserve for credit loss as of December 31, 2018 and 2017 is 2,578,457 million Won and 2,438,191 million Won, respectively
Regulatory reserve for credit loss to be reversed (reserved) as of December 31, 2018 and 2017 is 222,211 million Won and (-)140,266 million Won, respectively
Planned provision reversed(reserved) of regulatory reserve for credit loss as of December 31, 2018 and 2017 is 222,211 million Won and (-)140,266 million Won, respectively		17,124,657			15,620,006
Non-controlling interests		213,113			199,008

Total equity		21,953,044			20,564,900

Total liabilities and equity		340,447,183			316,295,461

(*)	The consolidated statements of financial position as of December 31, 2018 was prepared in accordance with K-IFRS 1109; however, the comparative consolidated statements of financial position as of December 31, 2017 was not retrospectively restated in accordance with K-IFRS 1109.

WOORI BANK AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

FOR THE YEARS ENDED DECEMBER 31, 2018 AND 2017


	2018(*)			2017(*)
	(Korean won in millions, except for per share data)
Interest income		9,684,499			8,550,687
Financial assets at FVTPL (K-IFRS 1109)		54,243			—
Financial assets at FVTOCI		280,371			—
Financial assets at amortized cost		9,349,885			—
Financial assets at FVTPL (K-IFRS 1039)		—			53,348
AFS financial assets		—			239,030
HTM financial assets		—			307,965
Loans and receivables		—			7,950,344
Interest expense		(4,033,548	)		(3,330,037	)

Net interest income (Notes 34 and 45)		5,650,951			5,220,650

Fees and commissions income		1,680,764			2,069,198
Fees and commissions expense		(610,790	)		(998,732	)

Net fees and commissions income (Notes 35 and 45)		1,069,974			1,070,466

Dividend income (Notes 36 and 45)		90,552			124,992
Net gain on financial instruments at FVTPL (K-IFRS 1109) (Notes 11, 37 and 45)		214,443			—
Net loss on financial instruments at FVTPL (K-IFRS 1039) (Notes 11, 37 and 45)		—			(104,827	)
Net gain on financial assets at FVTOCI (Notes 11 and 38)		2,047			—
Net gain on AFS financial assets (Notes 11 and 38)		—			192,708
Net gain on disposals of financial assets at amortized cost		79,532			—
Net gain on disposals of securities at amortized cost		431			—
Net gain on disposals of loans and other financial assets at amortized cost		79,101			—
Impairment losses due to credit loss (Notes 39 and 45)		(329,574	)		(785,133	)
General and administrative expenses (Notes 40 and 45)		(3,624,033	)		(3,530,801	)
Other net operating expenses (Notes 40 and 45)		(394,591	)		(31,313	)

Operating income		2,759,301			2,156,742

Share of gain(loss) on subsidiaries and associates (Note 13)		3,019			(101,514	)
Net other non-operating income(expense)		42,552			(105,722	)

Non-operating income(expense) (Note 41)		45,571			(207,236	)

Net income before income tax expense		2,804,872			1,949,506

Income tax expense (Note 42)		(753,223	)		(419,418	)

(Continued)

WOORI BANK AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

FOR THE YEARS ENDED DECEMBER 31, 2018 AND 2017 (CONTINUED)


	2018(*)			2017(*)
	(Korean won in millions, except for per share data)
Net income
(Net income after the provision for regulatory reserve for credit loss for the years ended December 31, 2018 and 2017, is 2,010,774 million won and 1,389,822 million won, respectively) (Note 32)		2,051,649			1,530,088

Net loss on valuation of equity securities at FVTOCI		(30,855	)		—
Net gain(loss) on valuation of financial liabilities designated as at FVTPL due to own credit risk		100			—
Items out of share of other comprehensive gain of joint ventures and associates that will not be reclassified to profit or loss		—			(2,993	)
Remeasurement of the net defined benefit liability		(71,432	)		10,497
Net loss on valuation of assets held for sale		(13,197	)		—

Items that will not be reclassified to profit or loss		(115,384	)		7,504
Net gain on valuation of debt securities at FVTOCI		33,360			—
Net loss on valuation of AFS financial assets		—			(84,498	)
Share of other comprehensive gain of joint ventures and associates		2,958			3,605
Net loss on foreign currency translation of foreign operations		(4,379	)		(208,329	)
Net gain (loss) on valuation of cash flow hedge		(4,646	)		777
Net gain (loss) on valuation of assets held for sale		(4,145	)		4,145

Items that may be reclassified to profit or loss		23,148			(284,300	)

Other comprehensive loss, net of tax		(92,236	)		(276,796	)

Total comprehensive income		1,959,413			1,253,292

Net income attributable to:
Net income attributable to owners		2,033,182			1,512,148
Net income attributable to non-controlling interests		18,467			17,940

Total comprehensive income attributable to:
Comprehensive income attributable to owners		1,943,885			1,249,057
Comprehensive income attributable to non-controlling interests		15,528			4,235

Basic and diluted earnings per share (In Korean Won) (Note 43)		2,796			1,999

(*)

The consolidated statements of comprehensive income for the year ended December 31, 2018 was prepared in accordance with K-IFRS 1109; however, the comparative consolidated statements of comprehensive income for the year ended December 31, 2017 was not retrospectively restated in accordance with K-IFRS 1109.

WOORI BANK AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

FOR THE YEARS ENDED DECEMBER 31, 2018 AND 2017


	Capital Stock		Hybrid securities			Capital surplus			Other equity			Retained earnings			Owner’s equity			Non-controlling interests			Total equity
	(Korean Won in millions)
January 1, 2017		3,381,392		3,574,896			286,331			(1,468,025	)		14,611,566			20,386,160			159,793			20,545,953
Net income		—		—			—			—			1,512,148			1,512,148			17,940			1,530,088
Dividends to common stocks		—		—			—			—			(336,636	)		(336,636	)		(1,554	)		(338,190	)
Capital increase of subsidiaries		—		—			(451	)		—			—			(451	)		36,534			36,083
Net gain (loss) on valuation of available-for-sale financial assets		—		—			—			(85,051	)		—			(85,051	)		553			(84,498	)
Changes in equity of joint ventures and associates		—		—			—			612			—			612			—			612
Loss on foreign currency translation of foreign operations		—		—			—			(194,347	)		—			(194,347	)		(13,982	)		(208,329	)
Gain on valuation of cash flow hedge		—		—			—			777			—			777			—			777
Remeasurement gain (loss) related to defined benefit plan		—		—			—			10,773			—			10,773			(276	)		10,497
Equity related to assets held for sale		—		—			—			4,145			—			4,145			—			4,145
Dividends to hybrid securities		—		—			—			—			(167,072	)		(167,072	)		—			(167,072	)
Issuance of hybrid securities		—		559,565			—			—			—			559,565			—			559,565
Redemption of hybrid securities		—		(1,116,573	)		—			(208,158	)		—			(1,324,731	)		—			(1,324,731	)

December 31, 2017 (*)		3,381,392		3,017,888			285,880			(1,939,274	)		15,620,006			20,365,892			199,008			20,564,900

January 1, 2018		3,381,392		3,017,888			285,880			(1,939,274	)		15,620,006			20,365,892			199,008			20,564,900
Cumulative effect of change in accounting policy (Note 2)		—		—			—			(392,176	)		177,091			(215,085	)		723			(214,362	)
Adjusted balance, beginning of period		3,381,392		3,017,888			285,880			(2,331,450	)		15,797,097			20,150,807			199,731			20,350,538

Net income		—		—			—			—			2,033,182			2,033,182			18,467			2,051,649
Dividends to common stocks		—		—			—			—			(336,636	)		(336,636	)		(2,128	)		(338,764	)
Capital decrease of subsidiaries		—		—			9			—			—			9			(18	)		(9	)
Net gain on valuation of financial liabilities designated as at FVTPL due to own credit risk		—		—			—			100			—			100			—			100
Changes in other comprehensive income due to redemption of financial liabilities designated as at FVTPL		—		—			—			(4	)		4			—			—			—
Net gain (loss) on valuation of financial assets at FVTOCI		—		—			—			2,733			—			2,733			(228	)		2,505
Changes in other comprehensive income due to disposal of equity securities at FVTOCI		—		—			—			(1,009	)		1,009			—			—			—
Share of other comprehensive gain of joint ventures and associates		—		—			—			2,958			(10,647	)		(7,689	)		—			(7,689	)
Loss on foreign currency translation of foreign operations		—		—			—			(1,929	)		—			(1,929	)		(2,450	)		(4,379	)
Loss on valuation of cash flow hedge		—		—			—			(4,646	)		—			(4,646	)		—			(4,646	)
Remeasurement loss related to defined benefit plan		—		—			—			(71,171	)		—			(71,171	)		(261	)		(71,432	)
Net loss on disposal of assets held for sale		—		—			—			(17,342	)		—			(17,342	)		—			(17,342	)
Dividends to hybrid securities		—		—			—			—			(151,194	)		(151,194	)		—			(151,194	)
Issuance of hybrid securities		—		398,707			—			—			—			398,707			—			398,707
Redemption of hybrid securities		—		(254,632	)		—			(368	)		—			(255,000	)		—			(255,000	)
Appropriation of retained earnings		—		—			—			208,158			(208,158	)		—			—			—

December 31, 2018 (*)		3,381,392		3,161,963			285,889			(2,213,970	)		17,124,657			21,739,931			213,113			21,953,044

(*)

The consolidated statements of changes in equity for the year ended December 31, 2018 was prepared in accordance with K-IFRS 1109; however, the comparative consolidated statements of changes in equity for the year ended December 31, 2017 was not retrospectively restated in accordance with K-IFRS 1109.

WOORI BANK AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE YEARS ENDED DECEMBER 31, 2018 AND 2017


	For the years ended December 31
	2018 (*)			2017 (*)
	(Korean Won in millions)
Cash flows from operating activities:
Net income		2,051,649			1,530,088
Adjustments to net income:
Income tax expense		753,223			419,418
Interest income		(9,684,499	)		(8,550,687	)
Interest expense		4,033,548			3,330,037
Dividend income		(90,552	)		(124,992	)

		(4,988,280	)		(4,926,224	)

Additions of expenses not involving cash outflows:
Impairment losses due to credit loss		329,574			785,133
Loss on valuation of financial instruments at fair value through profit or loss		—			15,267
Loss on financial assets at FVTOCI		1,053			—
Share of losses of investments in joint ventures and associates		22,772			185,020
Loss on disposal of investments in joint ventures and associates		2,931			38,713
Loss on transaction and valuation of derivatives (hedging)		36,483			109,569
Loss on hedged items (fair value hedge)		17,299			—
Loss on provision		28,350			107,028
Retirement benefits		142,712			142,902
Depreciation and amortization		272,550			235,795
Loss on disposal of premises and equipment, intangible assets and other assets		1,160			9,994
Impairment loss on premises and equipment, intangible assets and other assets		87			390

		854,971			1,629,811

Deductions of income not involving cash inflows:
Gain on valuation of financial assets at FVTPL (K-IFRS 1109)		215,711			—
Gain on redemption of debentures		1,597			—
Gain on financial assets at FVTOCI		3,100			—
Gain on AFS financial assets		—			192,708
Gain on disposal of securities at amortized cost		431			—
Gain on valuation of investments in joint ventures and associates		25,791			83,506
Gain on disposal of investments in joint ventures and associates		50,511			39,932
Gain on transaction and valuation of derivatives (Designated for hedging)		35,810			122
Gain on hedged items (fair value hedge)		42,797			53,532
Reversal on provisions		2,014			2,567
Gain on disposal of premises and equipment, intangible assets and other assets		30,278			5,028
Reversal of impairment loss on premises and equipment, intangible assets and other assets		761			666

		408,801			378,061

Changes in operating assets and liabilities:
Financial assets at FVTPL (K-IFRS 1109)		670,872			—
Financial instruments at fair value through profit or loss (K-IFRS 1039)		—			(583,068	)
Loans and other financial assets at amortized cost		(15,754,102	)		—
Loans and receivables		—			(9,647,563	)
Other assets		32,328			35,953
Deposits due to customers		13,995,747			13,634,873
Provisions		(11,920	)		(122,711	)
Net defined benefit liability		(135,313	)		(46,789	)
Other financial liabilities		7,411,753			(7,966,786	)
Other liabilities		89,399			(27,550	)

		6,298,764			(4,723,641	)

Cash received from (paid for) operating activities:
Interest income received		9,617,307			8,570,715
Interest expense paid		(3,847,411	)		(3,404,608	)
Dividends received		90,651			127,343
Income tax paid		(544,058	)		(404,428	)

		5,316,489			4,889,022

Net cash provided by(used in) operating activities		9,124,792			(1,979,005	)

(Continued)

WOORI BANK AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE YEARS ENDED DECEMBER 31, 2018 AND 2017 (CONTINUED)


	For the years ended December 31
	2018 (*)			2017 (*)
	(Korean Won in millions)
Cash flows from investing activities:
Cash in-flows from investing activities:
Disposal of financial assets at FVTPL (K-IFRS 1109)		11,919,335			—
Disposal of financial assets at FVTOCI		9,146,307			—
Disposal of AFS financial assets		—			24,912,752
Redemption of securities at amortized cost		9,426,757
Redemption of HTM financial assets		—			8,587,092
Disposal of investments in joint ventures and associates		57,300			70,180
Disposal of subsidiaries		—			203
Disposal of investment properties		3,512			418
Disposal of premises and equipment		5,545			7,428
Disposal of intangible assets		9,199			1,188
Disposal of assets held for sale		74,482			24,808

		30,642,437			33,604,069

Cash out-flows from investing activities:
Net cash in-flows of business combination		134,967			—
Acquisition of financial assets at FVTPL (K-IFRS 1109)		12,322,160			—
Acquisition of financial assets at FVTOCI		13,275,429			—
Acquisition of AFS financial assets		—			19,674,346
Acquisition of securities at amortized cost		15,622,847			—
Acquisition of HTM financial assets		—			11,521,065
Acquisition of investments in joint ventures and associates		48,272			143,161
Acquisition of investment properties		15,195			9,872
Acquisition of premises and equipment		118,668			162,245
Acquisition of intangible assets		176,067			195,929
Cash out-flow related to derivatives designated for hedging		—			13,742

		41,713,605			31,720,360

Net cash provided by(used in) investing activities		(11,071,168	)		1,883,709

Cash flows from financing activities:
Cash in-flows from financing activities:
Increase in borrowings		9,606,126			9,057,999
Issuance of debentures		21,505,849			18,438,221
Issuance of hybrid securities		398,707			559,565
Capital increase of subsidiaries		—			35,841

		31,510,682			28,091,626

Cash out-flows from financing activities:
Repayment of borrowings		8,349,005			12,692,883
Repayment of debentures		20,903,518			13,620,520
Payment of dividends to common stocks		336,636			336,636
Dividends paid on hybrid securities		147,625			177,730
Redemption of hybrid securities		255,000			1,323,400
Dividends paid on non-controlling interests		2,128			1,554

		29,993,912			28,152,723

Net cash provided by(used in) financing activities		1,516,770			(61,097	)

Net decrease in cash and cash equivalents		(429,606	)		(156,393	)
Cash and cash equivalents, beginning of the period		6,908,286			7,591,324
Effects of exchange rate changes on cash and cash equivalents		233,943			(526,645	)

Cash and cash equivalents, end of the period (Note 6)		6,712,623			6,908,286

(*)	The consolidated statements of cash flows for the year ended December 31, 2018 was prepared in accordance with K-IFRS 1109; however, the comparative consolidated statements of cash flows for the year ended December 31, 2017 was not retrospectively restated to apply K-IFRS 1109.

WOORI BANK

SEPARATE STATEMENTS OF FINANCIAL POSITION

AS OF DECEMBER 31, 2018 AND 2017


	December 31, 2018(*)		December 31, 2017(*)
	(Korean Won in millions)
ASSETS
Cash and cash equivalents (Notes 6 and 45)		5,723,801		5,328,960
Financial assets at fair value through profit or loss (“FVTPL”) (K-IFRS 1109) (Notes 4, 7, 11, 12, 18, 26 and 45)		3,877,858		—
Financial assets at FVTPL (K-IFRS 1039) (Notes 4, 7, 11, 12, 18, 26 and 45)		—		4,133,724
Financial assets at fair value through other comprehensive income (“FVTOCI”) (Notes 4, 8, 11, 12, and 18)		17,040,674		—
Available for sale (“AFS”) financial assets (Notes 4, 8, 11, 12 and 18)		—		14,186,704
Securities at amortized cost (Notes 4, 9, 11, 12 and 18)		22,802,050		—
Held to maturity (“HTM”) financial assets (Notes 4, 9, 11, 12 and 18)		—		16,638,727
Loans and other financial assets at amortized cost (Notes 4, 10, 11, 12, 18 and 45)		260,350,949		—
Loans and receivables (Notes 4, 10, 11, 12, 18 and 45)		—		248,810,624
Investments in subsidiaries and associates (Note 13)		4,193,775		4,148,795
Investment properties (Note 14)		367,117		350,235
Premises and equipment (Note 15)		2,350,342		2,374,590
Intangible assets (Note 16)		353,167		303,325
Assets held for sale (Note 17)		143,288		46,183
Deferred tax assets (Note 42)		7,360		238,543
Derivative assets (Held for hedging) (Notes 4, 11, 12 and 26)		35,503		59,272
Other assets (Notes 19 and 45)		149,995		117,889

Total assets		317,392,879		296,737,571

LIABILITIES
Financial liabilities at FVTPL (K-IFRS 1109) (Notes 4, 11 12, 20, 26 and 45)		2,279,373		—
Financial liabilities at FVTPL (K-IFRS 1039) (Notes 4, 11, 12, 20, 26 and 45)		—		3,416,978
Deposits due to customers (Notes 4, 11, 21 and 45)		237,426,765		224,384,156
Borrowings (Notes 4, 11, 12 and 22)		14,081,092		13,662,984
Debentures (Notes 4, 11 and 22)		21,666,331		21,707,466
Provisions (Notes 23, 44 and 45)		283,501		368,027
Net defined benefit liability (Note 24)		136,163		14,284
Liabilities of a disposal group classified as held for sale		72,361		—
Current tax liabilities (Note 42)		110,127		212,376
Derivative liabilities (Held for hedging) (Notes 4, 11, 12 and 26)		17,654		12,103
Other financial liabilities (Notes 4, 11, 12, 25 and 45)		20,097,011		13,029,421
Other liabilities (Notes 25 and 45)		173,501		135,686

Total liabilities		296,343,879		276,943,481

(Continued)

WOORI BANK

SEPARATE STATEMENTS OF FINANCIAL POSITION

AS OF DECEMBER 31, 2018 AND 2017 (CONTINUED)


	December 31, 2018(*)			December 31, 2017(*)
	(Korean Won in millions)
EQUITY
Capital stock (Note 28)		3,381,392			3,381,392
Hybrid securities (Note 29)		3,161,963			3,017,888
Capital surplus (Note 28)		269,533			269,533
Other equity (Note 30)		(386,840	)		(135,282	)
Retained earnings (Notes 31 and 32)
(Regulatory reserve for credit loss as of December 31, 2018 and 2017 is 2,091,721 million Won and 2,017,342 million Won, respectively
Regulatory reserve for credit loss to be reversed (reserved) as of December 31, 2018 and 2017 is 202,905 million Won and (-) 74,379 million Won, respectively
Planned provision reversed (reserved) of regulatory reserve for credit loss as of December 31, 2018 and 2017 is 202,905 million Won and (-) 74,379 million Won, respectively)		14,622,952			13,260,559

Total equity		21,049,000			19,794,090

Total liabilities and equity		317,392,879			296,737,571

(*)	The separate statement of financial position as of December 31, 2018 was prepared in accordance with K-IFRS 1109; however, the comparative separate statement of financial position as of December 31, 2017 was not retrospectively restated in accordance with K-IFRS 1109.

WOORI BANK

SEPARATE STATEMENTS OF COMPREHENSIVE INCOME

FOR THE YEARS ENDED DECEMBER 31, 2018 AND 2017


	2018(*)			2017(*)
	(Korean won in millions, except for per share data)
Interest income		8,331,967			7,385,721
Financial assets at FVTPL (K-IFRS 1109)		6,047
Financial assets at FVTOCI		256,995
Financial assets at amortized cost		8,068,925
Financial assets at FVTPL (K-IFRS 1039)					17,735
AFS financial assets					205,594
HTM financial assets					303,348
Loans and receivables					6,855,044
Interest expense		(3,604,249	)		(2,995,118	)

Net interest income (Notes 34 and 45)		4,727,718			4,390,603

Fees and commissions income		1,151,201			1,072,838
Fees and commissions expense		(148,554	)		(141,817	)

Net fees and commissions income (Notes 35 and 45)		1,002,647			931,021

Dividend income (Notes 36 and 45)		75,986			125,599
Net gain on financial instruments at FVTPL (K-IFRS 1109) (Notes 11, 37 and 45)		204,649			—
Net loss on financial instruments at FVTPL (K-IFRS 1039) (Notes 11, 37 and 45)		—			(96,983	)
Net gain on financial assets at FVTOCI (K-IFRS 1109) (Notes 11 and 38)		1,333			—
Net gain on AFS financial assets (Notes 11 and 38)		—			135,003
Net gain on financial assets at amortized cost		44,166			—
Net gain on disposals of securities at amortized cost		431			—
Net gain on disposals of loans and other financial assets at amortized cost		43,735			—
Impairment losses due to credit loss (Notes 39 and 45)		(58,823	)		(553,204	)
General and administrative expenses (Notes 40 and 45)		(3,189,336	)		(3,128,725	)
Other net operating expenses (Notes 40 and 45)		(392,649	)		(12,756	)

Operating income		2,415,691			1,790,558

Share of losses on subsidiaries and associates (Note 13)		(241	)		(133,948	)
Net other non-operating income(expense)		70,181			(36,388	)

Non-operating income(expense) (Note 41)		69,940			(170,336	)

Net income before income tax expense		2,485,631			1,620,222

Income tax expense (Note 42)		(674,727	)		(344,110	)

WOORI BANK

SEPARATE STATEMENTS OF COMPREHENSIVE INCOME

FOR THE YEARS ENDED DECEMBER 31, 2018 AND 2017


	2018(*)			2017(*)
	(Korean won in millions, except for per share data)
Net income
(Net income after the provision for regulatory reserve for credit loss for the years ended December 31, 2018 and 2017, is 1,819,532 million won and 1,201,733 million won, respectively) (Note 32)		1,810,904			1,276,112

Net loss on valuation of equity securities at FVTOCI		(29,290	)		—
Net gain on valuation of financial liabilities designated as at FVTPL due to own credit risk		100			—
Remeasurement of the net defined benefit liability		(79,639	)		16,566
Items that will not be reclassified to profit or loss		(108,829	)		16,566

Net gain on valuation of debt securities at FVTOCI		36,085			—
Net loss on valuation of AFS financial assets		—			(48,139	)
Net gain (loss) on foreign currencies translation of foreign operations		7,882			(34,093	)
Items that may be reclassified to profit or loss		43,967			(82,232	)

Other comprehensive loss, net of tax		(64,682	)		(65,666	)

Total comprehensive income		1,746,042			1,210,446

Net income per share (Note 43)

Basic and diluted earnings per common share (in Korean Won)		2,466			1,648

(*)	The separate statement of comprehensive income for year ended December 31, 2018 was prepared in accordance with K-IFRS 1109; however, the comparative separate statement of comprehensive income for the year ended December 31, 2017 was not retrospectively restated in accordance with K-IFRS 1109

WOORI BANK

SEPARATE STATEMENTS OF CHANGES IN EQUITY

FOR THE YEARS ENDED DECEMBER 31, 2018 AND 2017


	Capital stock		Hybrid securities			Capital surplus		Other equity			Retained earnings			Total
	(Korean Won in millions)
January 1, 2017		3,381,392		3,574,896			269,533		138,542			12,488,155			19,852,518
Net income		—		—			—		—			1,276,112			1,276,112
Dividends on common stocks		—		—			—		—			(336,636	)		(336,636	)
Loss on valuation of available-for-sale financial assets		—		—			—		(48,139	)		—			(48,139	)
Loss on foreign currency translation of foreign operations		—		—			—		(34,093	)		—			(34,093	)
Remeasurement gain related to defined benefit plan		—		—			—		16,566			—			16,566
Dividends to hybrid securities		—		—			—		—			(167,072	)		(167,072	)
Issuance of hybrid securities		—		559,565			—		—			—			559,565
Redemption of hybrid securities		—		(1,116,573	)		—		(208,158	)		—			(1,324,731	)

*December 31, 2017()**		3,381,392		3,017,888			269,533		(135,282	)		13,260,559			19,794,090

January 1, 2018		3,381,392		3,017,888			269,533		(135,282	)		13,260,559			19,794,090
Cumulative effect of change in accounting policy (Note 2)									(393,473	)		246,464			(147,009	)

Adjusted balance, beginning of period		3,381,392		3,017,888			269,533		(528,755	)		13,507,023			19,647,081
Net income		—		—			—		—			1,810,904			1,810,904
Dividends on common stocks		—		—			—		—			(336,636	)		(336,636	)
Net gain on valuation of financial liabilities designated as at FVTPL due to own credit risk		—		—			—		100			—			100
Changes in other comprehensive income due to redemption of financial liabilities designated as at FVTPL		—		—			—		(4	)		4			—
Net gain on valuation of financial assets at FVTOCI		—		—			—		6,795			—			6,795
Changes in other comprehensive income due to disposal of equity securities at FVTOCI		—		—					(1,009	)		1,009			—
Gain on foreign currency translation of foreign operations		—		—			—		7,882			—			7,882
Remeasurement loss related to defined benefit plan		—		—			—		(79,639	)		—			(79,639	)
Appropriation of retained earnings		—		—			—		208,158			(208,158	)		—
Dividends to hybrid securities		—		—			—		—			(151,194	)		(151,194	)
Issuance of hybrid securities		—		398,707			—		—			—			398,707
Redemption of hybrid securities		—		(254,632	)		—		(368	)		—			(255,000	)

*December 31, 2018()**		3,381,392		3,161,963			269,533		(386,840	)		14,622,952			21,049,000

(*)	The separate statements of changes in equity for the year ended December 31, 2018 was prepared in accordance with K-IFRS 1109; however, the comparative separate statements of changes in equity for year ended December 31, 2017 was not retrospectively restated in accordance with K-IFRS 1109.

WOORI BANK

SEPARATE STATEMENTS OF CASH FLOWS

FOR THE YEARS ENDED DECEMBER 31, 2018 AND 2017


	2018(*)			2017(*)
	(Korean Won in millions)
Cash flows from operating activities:
Net income		1,810,904			1,276,112
Adjustment to net income:
Income tax expense		674,727			344,110
Interest income		(8,331,967	)		(7,385,721	)
Interest expense		3,604,249			2,995,118
Dividend income		(113,467	)		(159,603	)

		(4,166,458	)		(4,206,096	)

Additions of expenses not involving cash outflows:
Impairment losses due to credit loss		58,823			553,204
Loss on valuation of financial instruments at FVTPL		—			6,596
Impairment loss on investments in subsidiaries and associates		241			133,948
Loss on transaction and valuation of derivatives (Held for hedging)		36,488			52,959
Loss on hedged items (fair value hedge)		17,299			—
Loss on provision		10,823			51,510
Retirement benefits		128,447			131,334
Depreciation and amortization		217,074			165,095
Loss on disposal of premises and equipment and other assets		933			1,714
Impairment loss on premises and equipment and other assets		5,933			184

		476,061			1,096,544

Deductions of income not involving cash inflows:
Gain on valuation of financial assets at FVTPL (K-IFRS 1109)		216,135			—
Gain on financial assets at FVTOCI		1,333			—
Gain on AFS financial assets		—			135,003
Gain on disposal of securities at amortized cost		431			—
Gain on transaction and valuation of derivatives (hedging)		9,126			—
Gain on hedged items (fair value hedge)		42,797			53,532
Gain on provisions		1,883			2,357
Gain on disposal of investment in subsidiaries and associates		35,409			9,256
Gain on disposal of premises and equipment and other assets		25,537			12,950
Reversal of impairment loss on premises and equipment and other assets		491			141

		333,142			213,239

(Continued)

WOORI BANK

SEPARATE STATEMENTS OF CASH FLOWS (CONTINUED)

FOR THE YEARS ENDED DECEMBER 31, 2018 AND 2017


	2018(*)			2017(*)
	(Korean Won in millions)
Changes in operating assets and liabilities:
Financial assets at FVTPL (K-IFRS 1109)		1,232,277			—
Financial assets at FVTPL (K-IFRS 1039)		—			(439,949	)
Loans and other financial assets at amortized cost		(11,927,559	)		—
Loans and receivables		—			(8,192,223	)
Other assets		(23,497	)		(21,665	)
Deposits due to customers		13,042,027			13,005,112
Provision		7,781			4,788
Net defined benefit liability		(118,735	)		(34,946	)
Other financial liabilities		6,919,137			(7,675,726	)
Other liabilities		45,077			(28,404	)

		9,176,508			(3,383,013	)

Cash received from(paid for) operating activities:
Interest income received		8,305,699			7,389,513
Interest expense paid		(3,416,210	)		(3,013,602	)
Dividend received		111,426			153,401
Income tax paid		(464,286	)		(343,529	)

		4,536,629			4,185,783

Net cash provided by(used in) operating activities		11,500,502			(1,243,909	)

Cash flows from investing activities:
Cash in-flows from investing activities:
Disposal of Financial assets at FVTPL (K-IFRS 1109)		11,918,394			—
Disposal of financial assets at FVTOCI		8,969,290			—
Disposal of AFS financial assets		—			23,119,666
Redemption of securities at amortized cost		9,400,596			—
Redemption of HTM financial assets		—			8,506,982
Disposal of investments in subsidiaries and associates		59,771			26,078
Disposal of premises and equipment		387			7,238
Disposal of intangible assets		2,845			383
Disposal of assets held for sale		73,481			21,681

		30,425,124			31,682,028

Cash out-flows from investing activities:
Acquisition of financial assets at FVTPL (K-IFRS 1109)		12,322,160			—
Acquisition of financial instruments at FVTOCI		12,945,225			—
Acquisition of AFS financial assets		—			19,287,548
Acquisition of securities at amortized cost		15,575,213			—
Acquisition of HTM financial assets		—			11,477,669
Acquisition of investments in subsidiaries and associates		285,140			522,906
Acquisition of investment properties		12,957			3,029
Acquisition of premises and equipment		89,414			134,271
Acquisition of intangible assets		163,877			172,121
Cash outflow related to derivatives for risk hedge		—			13,742

		41,393,986			31,611,286

Net cash provided by(used in) investing activities		(10,968,862	)		70,742

(Continued)

WOORI BANK

SEPARATE STATEMENTS OF CASH FLOWS (CONTINUED)

FOR THE YEARS ENDED DECEMBER 31, 2018 AND 2017


	2018(*)			2017(*)
	(Korean Won in millions)
Cash flows from financing activities:
Cash in-flows from financing activities:
Increase in borrowings		8,539,312			8,529,590
Issuance of debentures		5,248,047			8,669,476
Issuance of hybrid securities		398,707			559,565

		14,186,066			17,758,631

Cash out-flows for financing activities:
Repayment of borrowings		8,280,546			10,475,855
Repayment of debentures		5,523,518			4,680,520
Dividends paid		336,636			336,636
Redemption of hybrid securities		255,000			1,323,400
Dividends paid on hybrid securities		147,625			177,730

		14,543,325			16,994,141

Net cash provided by(used in) financing activities		(357,259	)		764,490

Net increase(decrease) in cash and cash equivalents		174,381			(408,677	)
Cash and cash equivalents, beginning of the period		5,328,960			6,104,029
Effects of exchange rate changes on cash and cash equivalents		220,460			(366,392	)

Cash and cash equivalents, end of the period (Note 6)		5,723,801			5,328,960

(*)	The separate statement of cash flows for the year ended December 31, 2018 was prepared in accordance with K-IFRS 1109; however, the comparative separate flows for the year ended December 31, 2017 was not retrospectively restated in accordance with K-IFRS 1109.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.


	Woori Financial Group Inc.
	(Registrant)

Date: March 8, 2019	By: /s/ Kyong-Hoon Park
	(Signature)

	Name:	Kyong-Hoon Park
	Title:	Deputy President