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 April 2019

Commission File Number: 001-31811

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.

Index

1.	Summary of 2018 Business Report

-	For the Woori Bank Audit Reports for Fiscal Year 2018, please refer to the exhibits to the Form 6-K furnished to the U.S. Securities and Exchange Commission on March 19, 2019.

Summary of 2018 Business Report

Table of Contents


I.	INTRODUCTION OF THE BANK		5

	1.	Overview of the Bank	5

	2.	Capital Structure (Changes in Capital)	10

	3.	Total Number of Authorized Shares	10

	4.	Voting Rights	11

	5.	Dividend Information	12

II.	BUSINESS OVERVIEW		13

	1.	Results of Operations	13

	2.	Business Performance by Operation	13

	3.	Funding Sources and Use of Funds	15

	4.	Other Information Necessary for Making Investment Decisions	17

III.	FINANCIAL INFORMATION		19

	1.	Condensed Financial Statements (Consolidated)	19

	2.	Condensed Financial Statements (Separate)	21

IV.	INDEPENDENT AUDITOR’S OPINION		23

	1.	Independent Auditor’s Opinion	23

	2.	Compensation to the Independent Auditor for the Past Three Years	23

V.	CORPORATE GOVERNANCE AND AFFILIATED COMPANIES		24

	1.	About the Board of Directors	24

	2.	Affiliated Companies (As of December 31, 2018)	25

VI.	SHAREHOLDER INFORMATION		26

	1.	Share Distribution	26

	2.	Stock Price and Stock Market Performance	29

VII.	DIRECTORS AND EMPLOYEE INFORMATION		30

	1.	Directors	30

	2.	Employee Status	31

	3.	Directors’ Compensation	31

VIII.	RELATED PARTY TRANSACTIONS		31

Except where indicated otherwise, financial information contained in this document (including the attached financial statements) has been prepared in accordance with the Korean equivalent of International Financial Reporting Standards (“Korean IFRS”), which differ in certain important respects from generally accepted accounting principles in the United States.

All references to “Woori Bank,” “we,” “us” or the “Bank” are to Woori Bank and, unless the context requires otherwise, its subsidiaries. In addition, all references to “Won” or “KRW” in this document are to the currency of the Republic of Korea.

I.	Introduction of the Bank

1.	Overview of the Bank

a.	History

(1)

Background: Major developments.


January 30, 1899		Established Daehancheonil Bank (Changed its name to The Commercial Bank of Korea on April 24, 1950)

July 3, 1909		The first bank in Korea to build modernized head office building ‘Gwangtonggwan’

March 31, 1915		Became main transaction bank of Gyeongsung (Present: Seoul Metropolitan City)

December 16, 1932		Established Chosun Trust Company (Changed its name to Hanil Bank on January 1, 1960)

March 3, 1956		The first company to be listed in KRX

June 10, 1959		Installed vault for women

November 11, 1968		The first Korean bank to open an overseas branch (Tokyo branch)

January 4, 1999		The Commercial Bank of Korea changed its name to Hanvit Bank after merging with Hanil Bank

March 27, 2001		Became a subsidiary of Woori Finance Holdings Co., Ltd. (“Woori Finance Holdings”)

December 31, 2001		Merged with the spun off banking division of Peace Bank of Korea

January 31, 2002		Transferred the credit card business of Hanvit Bank to Woori Card

May 20, 2002		Changed its name and C.I. to Woori Bank

July 31, 2003		Merged with Woori Investment Bank

March 31, 2004		Merged with Woori Credit Card

December 1, 2006		Officially launched Woori Global Markets Asia Limited

November 12, 2007		Established a local legal entity in China, Woori Bank China Ltd.

January 9, 2008		Established a local legal entity in Russia, ZAO Woori Bank

December 16, 2008		Issued 70,000,000 convertible preferred shares (par value KRW 5,000, issue price KRW 10,000)


April 1, 2009		Issued 60,000,000 common shares for increase in capital

December 15, 2009		Awarded Asian Financial Culture Grand Prize “Top Prize in Community Activities”

November 29, 2010		Acquired ‘IT service ISO 27001 Certificate’

April 25, 2012		Awarded “2012 Top Bank of Korea” by the Asian Banker for two consecutive years

September 25, 2012		Woori Brazil Bank began business

November 7, 2012		Awarded Grand Prize for the First Awards for Protection of Financial Consumers in 2012 by the Korea Economic Daily

November 29, 2012		Awarded Presidential Award sponsored by the Financial Supervisory Commission for “Anti-Money Laundering”

April 1, 2013		Spun off its credit card business

June 27, 2013		Number 1 in Korean Standard-Service Quality Index (KS-SQI) for three consecutive years

October 4, 2013		Selected by National Pension Fund as “Top Foreign Exchange Bank”

April 24, 2014		Became the First domestic bank to issue Basel III subordinated debt in foreign currency (USD 1 billion)

May 21, 2014		Awarded “Korea’s Top Bank in Money Management” by Asian Banker in 2014

June 30, 2014		Daehancheonil Bank materials designated as the 11^th in National Records Designation System

August 1, 2014		The first Korean bank to launch ‘Woori Mobile Passbook’, enables to transact without passbook

November 1, 2014		Woori Finance Holdings merged with and into the Bank

November 19, 2014		Re-listed Woori Bank in KRX

February 26, 2015		PT. Bank Woori Saudara Indonesia officially launched

March 31, 2015		Commemoration of the 100 year partnership between Woori Bank and Seoul Metropolitan Government


April 19, 2015		Awarded ‘2015 Best Cash Management Bank in South Korea’ and ‘2015 Best Sub Custodian Bank in South Korea’ by Asian Banker

May 15, 2015		Launched ‘Incheon International Airport Branch’

May 26, 2015		Launched mobile-only bank, WiBee Bank

		WiBee Bank mobile loan products released

November 26, 2015		The first Korean bank to reach 200 global networks (Woori Finance Myanma)

January 13, 2016		The first Korean bank to start ‘iris scan ATM service’

January 19, 2016		Started debit card service in Bangladesh

February 3, 2016		Lanched WiBee Bank service in Indonesia, Vietnam and Brazil

May 2, 2016		The first Korean bank to open representative office in Iran

July 1, 2016		Launched mobile based ‘WiBee Members’

October 31, 2016		Acquired approval to launch subsidiary in Vietnam

November 13, 2016		The FSC announced the KDIC’s successful privatization efforts through the sales of a combined 29.7% ownership interest in Woori Bank to seven financial companies

December 8, 2016		Awarded ‘2016 Bank of the Year in Korea’ by Bankers

December 27, 2016		Reached 250^th global networks

January 5, 2017		The first Korean bank to launch ‘One-touch Notice’ in foreign languages

January 12, 2017		Selected as the 2016 Best Korean Wealth Management Provider by British magazine “World Finance”

February 5, 2017		The first Korean bank to Open office in Katowice, Poland

March 22, 2017		The first Korean bank to launch Korean film investment fund ‘Woori Bank-Company K Korean film investment fund’

March 28, 2017		Launched SORi, the first voice recognition AI banking service in Korea

June 8, 2017		Awarded “Best Transaction Bank” and “Top Bank in Money Management” by Asian Banker


June 21, 2017		Launched overseas remittance service with an Indonesian telecommunications company, the first in the Korean financial sector

June 28, 2017		Received a Presidential Citation for “social enterprise fosterage” from the Ministry of Employment and Labor, the sole recipient from the Korean financial sector.

July 12, 2017		Joint declaration to create jobs by management and labor force for the first time in the Korean financial sector

September 8, 2017		Woori Bank Vietnam launched a local credit card in collaboration with Woori Card

October 16, 2017		Selected by National Pension Fund as main transaction bank

November 30, 2017		Awarded ‘2017 Asia-Pacific Bank of the Year’ by Bankers

December 22, 2017		Inaugurated the 51^st President of the Bank, Tae-Seung Sohn

December 26, 2017		Exceeded 300 global networks

January 15, 2018		Opened sub-branch in Incheon International Airport Passenger Terminal 2

February 1, 2018		Launched comprehensive real-estate information platform, ‘WiBee Homes’

May 8, 2018		Implemented new core banking system ‘WINI’

June 21, 2018		Acquired a local financial institution in Cambodia, WB Finance (‘VisionFund Cambodia’), expanding global network to 410

July 9, 2018		The first Korean bank to invest in the ‘Impact Investment Fund’

August 30, 2018		The first Korean bank to agree with its labor union on an early introduction of the 52-hour work week

October 8, 2018		The first Korean bank to establish a local Credit Analysis Center abroad

October 9, 2018		Acquired approval to establish subsidiary in Germany (‘Woori Bank Europe’)

December 3, 2018		Awarded ‘2018 Bank of the Year in Korea’ by The Banker

b.	Affiliated Companies

(1)

Overview of Business Group

Name of business group: Woori Bank

(2)

Affiliated companies within the business group

As of December 31, 2018


Type	Name of Company	(Controlling Company)
Company	Woori Bank	—

FirstTier Subsidiaries (20 companies)	Woori Card (equity ownership 100.0%)	Woori Bank
	Woori Investment Bank (equity ownership 59.83%)
	Woori FIS (equity ownership 100.0%)
	Woori Private Equity Asset Management (equity ownership 100.0%)
	Woori Finance Research Institute (equity ownership 100.0%)
	Woori Credit Information (equity ownership 100.0%)
	Woori Fund Services (equity ownership 100.0%)
	Korea BTL Infrastructure Fund (equity ownership 99.87%)
	Woori America Bank (equity ownership 100.0%)
	Woori Bank Europe (equity ownership 100.0%)
	PT. Bank Woori Saudara Indonesia (equity ownership 79.88%)
	AO Woori Bank (equity ownership 100.0% - 1 share)
	Woori Bank China Limited (equity ownership 100.0%)
	Woori Bank Brasil (equity ownership 100.0% - 1 share)
	Woori Finance Cambodia (equity ownership 100.0%)
	WB Finance (Cambodia)(equity ownership 100.0%)
	Woori Finance Myanmar (equity ownership 100.0%)
	Woori Wealth Bank Philippines (equity ownership 51%)
	Woori Bank Vietnam (equity ownership 100.0%)
	Woori Global Markets Asia Ltd. (equity ownership 100.0%)

Second Tier Subsidiaries (1 company)	TUTU Finance-WCI Myanmar (equity ownership 100.0%)	Woori Card

Other Subsidiaries (1 company)	Woori-Hanwha Eureka Private Equity Fund (equity ownership 0.80%) Note1)	Woori Private Equity Asset Management

*	Listed Companies : Woori Bank, Woori Investment Bank and PT. Bank Woori Saudara Indonesia

Note 1) Established on August 1, 2018, Woori-Hanwha Eureka Private Equity Fund merged with Woori Private Equity Asset Management as Co-GP. It is not a consolidated subsidiary (equity ownership 0.8%).

2.	Capital Structure (Changes in Capital)


As of December 31, 2018				(units: Won, shares)


Date	Category	Stock Decrease/Increase
Date	Category	Type	Quantity		Par Value		Issue price		Note
APR.1.2013	Capital reduction with compensation	Common		153,797,130		5,000		5,000	Capital reduction due to spin off of credit card business
APR.1.2013	Capital reduction with compensation	Preferred		15,469,070		5,000		10,000	Capital reduction due to spin off of credit card business
JUN.5.2013	Exercise of conversion rights	Common		54,530,930		5,000		10,000	Reduction of preferred shares due to exercise of rights to convert convertible preferred shares
JUN.5.2013	Exercise of conversion rights	Preferred		54,530,930		5,000		10,000	Increase in common shares due to exercise of rights to convert convertible preferred shares
NOV.3.2014	—	Common		596,690,380		5,000		5,000	Capital reduction due to the merger with Woori Finance Holdings
NOV.3.2014	—	Common		676,278,371		5,000		5,000	Increase in common shares (new issuance of shares) due to the merger with Woori Finance Holdings
OCT.2.2015	—	Common		278,371		5,000		—	Retirement of shares*

*	On October 2, 2015, 278,371 shares were retired and the total number of shares issued decreased to 676,000,000 shares. There was no decrease to Woori Bank’s capital as the number of outstanding shares remains the same.

[Related Disclosure : Report on Form 6-K submitted by Woori Bank on September 30, 2015, entitled “Decision to Terminate Trust Agreement for Acquisition of Treasury Shares”]

3.	Total Number of Authorized Shares


As of December 31, 2018				(unit: shares)


Items	Type
Items	Common Shares		Total
Total number of shares authorized		5,000,000,000		5,000,000,000

Total number of shares issued to date		676,000,000		676,000,000

Number of treasury shares		2,728,774		2,728,774
Number of outstanding shares		673,271,226		673,271,226

*	Upon consummation of the merger with Woori Finance Holdings, 596,690,380 shares of the Bank were cancelled and 676,278,371 shares were newly issued according to the merger ratio.

*	On September 30, 2015 Woori Bank terminated its trust agreement and acquired 2,913,155 treasury shares which were deposited into Woori Bank’s treasury share account. On October 2, 2015, 278,371 of such acquired shares were retired.

[Related Disclosure : Report on Form 6-K submitted by Woori Bank on September 30, 2015, entitled “Decision to Terminate Trust Agreement for Acquisition of Treasury Shares”]

4.	Voting Rights


As of December 31, 2018				(unit: shares)


Items		Number of stock		Notes
Total number of shares issued	Common Shares		676,000,000		—
Total number of shares issued	Preferred Shares		—		—
Number of shares without voting rights	Common Shares		2,732,774		Note 1	)
Number of shares without voting rights	Preferred Shares		—		—
Number of shares for which voting rights are excluded pursuant to the articles of incorporation	Common Shares		—		—
	Preferred Shares		—		—
Number of shares for which voting rights are limited by law	Common Shares		17,679,632		Note 2	)
Number of shares for which voting rights are limited by law	Preferred Shares		—		—
Number of shares for which voting rights have been restored	Common Shares		—		—
Number of shares for which voting rights have been restored	Preferred Shares		—		—
Number of shares for which voting rights may be exercised	Common Shares		655,587,594		—
Number of shares for which voting rights may be exercised	Preferred Shares		—		—

Note 1) The shares without voting rights are treasury shares. Please see “I. Introduction of the Bank – 3. Total Number of Authorized Shares.”

Note 2) Pursuant to Article 16-2(2) of the Banking Act, a non-financial business operator is restricted from exercising voting rights in excess of 4% of the total number of outstanding voting shares of a bank.

5.	Dividend Information


Items		2018		2017		2016
Par value per share (Won)			5,000		5,000		5,000
Net profit (Millions of Won)			2,033,182		1,512,148		1,261,266
Earnings per share (Won)			2,796		1,999		1,567

Total cash dividends (Millions of Won)			437,626		403,963		269,308

Total stock dividends (Millions of Won)			—		—		—

Cash dividend payout ratio (%)			21.52		26.71		21.35
Cash dividend yield (%)	Common Shares		4.00		3.70		3.01
Cash dividend yield (%)	Preferred Shares		—		—		—
Stock dividend yield (%)	Common Shares		—		—		—
Stock dividend yield (%)	Preferred Shares		—		—		—
Cash dividend per share (Won)	Common Shares		650		600		400
Cash dividend per share (Won)	Preferred Shares		—		—		—
Stock dividend per share (Won)	Common Shares		—		—		—
Stock dividend per share (Won)	Preferred Shares		—		—		—

*	Based on K-IFRS consolidated financial statements

*	2017 figures include interim dividends

II.

Business Overview

1.	Results of Operations


As of December 31, 2018				(unit: in 100 millions of Won)


Type	2018		2017		2016
Operating income		27,593		21,567		15,742
Non-operating income		1,555		1,679		1,690
Non-operating expenses		1,099		3,751		1,898
Ordinary profits		28,049		19,495		15,534
Income from continuing operations before income tax		28,049		19,495		15,534
Income tax expense from continuing operations		7,532		4,194		2,759
Income from discontinued operations		—		—		—
Net income		20,516		15,301		12,775

*	Based on K- IFRS consolidated financial statements

2.	Business Performance by Operation

a.	Deposit Services


As of December 31, 2018				(unit: in millions of Won)


Type		2018		2017		2016
Deposits received in local currency	Demand deposits		11,076,417		9,349,070		9,491,680
	Fixed deposits		204,049,054		194,289,437		183,723,169
	Mutual funds		30,783		34,055		37,128
	Subtotal		215,156,254		203,672,562		193,251,977
Deposits received in foreign currencies			23,622,889		23,682,755		21,452,943
CDs			6,443,419		4,399,817		3,808,856
Money trusts			1,409,504		1,401,841		1,360,176
Other deposits received			2,058,872		1,538,110		1,146,459

Total			248,690,939		234,695,084		221,020,411

*	Based on K- IFRS consolidated financial statements

b.	Loan Services

(a)

Balances of Loans by Type


As of December 31, 2018				(unit: in millions of Won)


Type	2018		2017		2016
Loans in local currency		211,065,379		200,213,230		191,309,481
Loans in foreign currencies		18,173,398		15,664,794		17,855,868
Guarantee payments		13,810		23,620		25,197

Total		229,252,587		215,901,645		209,190,547

*	Based on K- IFRS consolidated financial statements

(b)

Balances of Loans by Maturity


As of December 31, 2018				(unit: in millions of Won)


Type	1 year or under		Over 1 year ~ 3 years or under		Over 3 years ~ 5 years or under		Over 5 years		Total
Loans in local currency		104,311,628		42,237,421		9,982,360		52,305,722		208,837,131
Loans in foreign currencies		7,467,837		2,144,129		1,182,977		1,073,944		11,868,887

*	Based on K- IFRS separate financial statements

c.	Trust Business


As of December 31, 2018				(unit: in millions of Won)


Type	2018				2017				2016
Type	Trust Funds		Trust Fees		Trust Funds		Trust Fees		Trust Funds		Trust Fees
Money trust		36,338,889		178,915		30,131,764		139,025		26,019,180		73,814
Property trust		14,286,303		4,850		12,942,930		4,507		12,714,338		4,803

Total		50,625,192		183,765		43,074,694		143,532		38,733,518		78,617

*	Trust funds indicate average balances.

3.	Funding Sources and Use of Funds

a.	Source of Funds

[Bank Accounts]

(Unit: in millions of Won, %)


Classification	Funding Source	2018						2017						2016
Classification	Funding Source	Average Balance		Interest Rate		Proportion		Average Balance		Interest Rate		Proportion		Average Balance		Interest Rate		Proportion
Local Currency funds	Deposits received in local currency		197,572,001		1.41		66.67		187,332,008		1.26		66.02		183,440,285		1.38		65.35
	Certificates of deposit		5,039,885		1.97		1.70		4,500,100		1.66		1.59		3,466,223		1.70		1.23
	Borrowings in local currency		6 ,554,881		1.47		2.21		6,213,903		1.32		2.19		6,709,080		1.45		2.39
	Call money in local currency		221,027		1.50		0.07		1,254,623		1.23		0.44		1,159,188		1.32		0.41
	Others		20,937,173		2.39		7.07		20,168,307		2.29		7.11		18,532,241		2.60		6.60

	Subtotal		230,324,967		1.51		77.73		219,468,941		1.37		77.34		213,307,017		1.50		75.98

Foreign Currency funds	Deposits received in foreign currencies		15,219,710		0.88		5.14		14,338,927		0.51		5.05		14,838,684		0.47		5.29
	Borrowings in foreign currencies		6,458,485		2.13		2.18		7,267,096		1.38		2.56		8,595,575		0.86		3.06
	Call money in foreign currencies		787,171		1.84		0.27		980,001		1.14		0.35		1,401,294		0.70		0.50
	Debentures in foreign currencies		3,669,625		3.96		1.24		3,649,805		3.11		1.29		3,950,614		2.54		1.41
	Others		658,810		0.38		0.22		574,786		0.14		0.20		531,877		0.29		0.19

	Subtotal		26,793,801		1.62		9.04		26,810,615		1.12		9.45		29,318,044		0.87		10.44

Others	Total capital		20,897,275		—		7.05		20,134,843		—		7.10		19,617,484		—		6.99
	Provisions		433,092		—		0.15		351,750		—		0.12		412,553		—		0.15
	Others		17,876,203		—		6.03		16,993,430		—		5.99		18,070,427		—		6.44

	Subtotal		39,206,571		—		13.23		37,480,023		—		13.21		38,100,463		—		13.57

Total			296,325,338		1.32		100.00		283,759,580		1.16		100		280,725,524		1.23		100.00

*	Based on K-IFRS separate financial statements

[Trust Accounts]

(Unit: in millions of Won, %)


Type	Funding Source	2018						2017						2016
Type	Funding Source	Average Balance		Interest Rate		Share		Average Balance		Interest Rate		Share		Average Balance		Interest Rate		Share
Cost	Money trusts		36,338,889		1.79		71.61		30,131,764		1.70		69.76		26,019,180		1.52		66.98
	Borrowings		—		—		—		—		—		—		—		—		—

	Subtotal		36,338,889		1.79		71.61		30,131,764		1.70		69.76		26,019,180		1.52		66.98

Non-cost	Property trusts		14,286,303		—		28.15		12,942,930				29.97		12,714,338				32.73
	Special reserves		39,845		—		0.08		39,082				0.09		38,160				0.10
	Other		77,227		—		0.15		76,821				0.18		72,810				0.19

	Subtotal		14,403,375		—		28.39		13,058,833				30.24		12,825,308				33.02

Total			50,742,264		—		100.00		43,190,597				100.00		38,844,488				100.00

b.	Fund Management Performance

[Bank Accounts]

(Unit: in millions of Won, %)


Type	Managed Item	2018								2017								2016
Type	Managed Item	Average Balance			Interest Rate		Share			Average Balance			Interest Rate		Share			Average Balance			Interest Rate		Share
Funds in local currency	Deposits in local currency		3,264,104			1.52		1.10			3,424,567			1.28		1.21			3,171,599			1.34		1.13
	Marketable securities in local currency		35,898,300			2.16		12.11			35,186,537			1.95		12.40			33,880,119			2.58		12.07
	Loans in local currency		203,432,263			3.22		68.65			194,161,817			3.05		68.42			189,079,324			3.10		67.35
	Guarantee payments		15,856			1.95		0.01			26,639			3.14		0.01			51,254			0.89		0.02
	Call loans in local currency		1,334,138			1.67		0.45			2,275,748			1.33		0.80			3,581,382			1.41		1.28
	Private placed ponds		135,856			2.89		0.05			185,092			5.94		0.07			247,292			5.19		0.09
	Credit card receivables		—			—		—			28			—		0.00			24			—		0.00
	Other		5,562,417			2.10		1.88			4,235,478			1.99		1.49			4,580,215			2.04		1.63
	Bad debt expense in local currency (-)		(1,197,910	)		—		(0.40	)		(1,284,188	)		—		(0.45	)		(1,925,177	)		—		(0.69	)

	Subtotal		248,445,023			3.03		83.84			238,211,718			2.85		83.95			232,666,033			2.98		82.88

Funds in foreign currencies	Deposits in foreign currencies		3,664,724			1.29		1.24			3,791,184			0.67		1.34			3,761,286			0.43		1.34
	Marketable securities in foreign currencies		3,467,435			1.30		1.17			2,735,707			1.07		0.96			1,752,884			1.13		0.62
	Loans in foreign currencies		11,346,607			3.14		3.83			10,790,442			2.51		3.80			13,371,873			1.95		4.76
	Call loans in foreign currencies		2,365,465			2.07		0.80			2,506,588			1.33		0.88			2,940,858			0.85		1.05
	Bills bought		7,274,987			2.70		2.46			7,417,500			1.88		2.61			7,110,164			1.53		2.53
	Other		32,665			3.31		0.01			48,472			2.50		0.02			13,829			9.72		0.00
	Bad debt expense in foreign currencies (-)		(390,923	)		—		(0.13	)		(332,301	)		—		(0.12	)		(312,211	)		—		(0.11	)

	Subtotal		27,760,961			2.50		9.37			26,957,590			1.85		9.50			28,638,685			1.51		10.20

Other	Cash		1,228,818			—		0.41			1,201,343			—		0.42			1,169,566			—		0.42
	Property and equipment for business purposes		2,353,944			—		0.79			2,352,466			—		0.83			2,325,893			—		0.83
	Other		16,536,592			—		5.58			15,036,463			—		5.30			15,925,347			—		5.67

	Subtotal		20,119,354			—		6.79			18,590,272			—		6.55			19,420,807			—		6.92

Total			296,325,338			2.78		100.00			283,759,580			2.57		100.00			280,725,524			2.62		100.00

*	Based on K-IFRS separate financial statements

[Trust Accounts]

(Unit: in millions of Won, %)


Type	Managed Item	2018							2017							2016
Type	Managed Item	Average Balance			Interest Rate		Share		Average Balance			Interest Rate		Share		Average Balance			Interest Rate		Share
Profit	Loans		37,422			3.58		0.07		27,539			3.62		0.06		23,088			4.21		0.06
	Securities		12,534,975			2.87		24.70		8,038,329			3.25		18.61		4,701,052			1.93		12.10
	Other		24,585,229			1.64		48.45		22,962,574			1.47		53.17		22,237,766			1.63		57.25
	Reserves for bond ratings(-)		(16	)		0.00		0.00		(45	)		0.00		0.00		(36	)		0.00		0.00
	Present value discount(-)		(3	)		0.00		0.00		(72	)		0.00		0.00		(215	)		0.00		0.00
	Subtotal		37,157,607			2.06		73.23		31,028,325			1.93		71.84		26,961,655			1.68		69.41

Non-profit	Subtotal		13,584,657			—		26.77		12,162,272			—		28.16		11,882,833					30.59

Total			50,724,264			—		100.00		43,190,597			—		100.00		38,844,488			—		100.00

4.	Other Information Necessary for Making Investment Decisions

a.	Selected Ratios

BIS Capital Adequacy Ratios

(unit: in 100 millions of Won, % )


Type	2018		2017		2016
Equity capital (A)		242,508		226,032		229,005
Risk weighted assets (B)		1,549,710		1,467,622		1,497,281
Capital adequacy ratio (A/B)		15.65		15.40		15.29

*	BIS (Bank for International Settlements) Capital Adequacy Ratios : Equity capital / Risk weighted assets * 100

*	Based on K-IFRS consolidated financial statements and Basel III standards

Liquidity Ratios

(unit: %)


Type	2018		2017		2016
Liquidity coverage ratio (*)		103.40		102.06		109.52
Foreign currency liquidity coverage ratio(**)		108.98		103.11		—
Ratio of business purpose premises and equipment		12.34		13.49		13.49

*	Based on K-IFRS financial statements

**	Newly introduced in 2017 (Current minimum ratio is 70% in 2018; to increase to 80% starting from 2019).

Our foreign currency liquidity coverage ratio was 111.57% in October 2018, 109.06% in November 2018 and 106.42% in December 2018

b.	Asset Quality

(unit: in 100 millions of Won)


Type		2018			2017			2016
Total loans	Total		2,339,165			2,221,185			2,166,122

	Corporate		1,204,196			1,155,213			1,140,252

	Household		1,134,969			1,065,972			1,025,870

Sub-standard and below loans Sub-standard and below loan ratio	Total		11,825			18,396			21,121

			0.51	%		0.83	%		0.98	%

	Corporate		9,033			15,826			18,237
	Corporate		0.75	%		1.37	%		1.60	%
	Household		2,791			2,570			2,884
	Household		0.25	%		0.24	%		0.28	%
Delinquency ratio	Based on total loans (after seasonal adjustment)		0.31	%		0.34	%		0.46	%
	Based on total loans (after seasonal adjustment)		(0.36	%)		(0.38	%)		(0.52	%)
	Based on corporate loans (after seasonal adjustment)		0.34	%		0.45	%		0.61	%
	Based on corporate loans (after seasonal adjustment)		(0.41	%)		(0.50	%)		(0.66	%)
	Based on household loans (after seasonal adjustment)		0.32	%		0.28	%		0.31	%
	Based on household loans (after seasonal adjustment)		(0.35	%)		(0.30	%)		(0.33	%)

*	Based on K-IFRS separate financial statements

c.	*Recent Developments*

On June 19, 2018, the Board of Directors of Woori Bank resolved to approve the adoption of a financial holding company structure pursuant to a comprehensive stock transfer plan. On November 7, 2018, the Financial Services Commission of Korea granted approval of the establishment of a financial holding company. Woori Financial Group Inc. was established on January 11, 2019 pursuant to shareholders’ approval at the extraordinary general meeting of shareholders held on December 28, 2018, and Woori Bank, Woori FIS, Woori Finance Research Institute, Woori Credit Information, Woori Fund Services and Woori Private Equity Asset Management became wholly owned subsidiaries of Woori Financial Group Inc. After its establishment, shares of Woori Bank were delisted from the Korea Stock Exchange and the New York Stock Exchange, and shares of Woori Financial Group Inc. were newly listed on the Korea Stock Exchange and the New York Stock Exchange

III.

Financial Information

1.	Condensed Financial Statements (Consolidated)

Summary Consolidated Statement of Financial Position


(The Bank and its Consolidated Subsidiaries)				(unit: in millions of Won)


Classification	2018			2017			2016
ASSETS
Cash and cash equivalents		6,712,623			6,908,286			7,591,324
Financial assets at FVTPL (fair value through profit or loss) K-IFRS1109		6,126,183			—			—
Financial assets at FVTPL (fair value through profit or loss) K-IFRS1039		—			5,843,077			5,650,724
Financial assets at FVTOCI (other comprehensive income)		18,063,423			—			—
Available-for-sale financial assets		—			15,352,950			20,817,583
Securities at amortized cost		22,932,559			—			—
Held-to-maturity financial assets		—			16,749,296			13,910,251
Loans and other financial assets at amortized cost		282,448,315			—			—
Loans and receivables		—			267,106,204			258,392,633
Investments in joint ventures and associates		361,427			417,051			439,012
Investment properties		378,069			371,301			358,497
Premises and equipment		2,441,141			2,477,545			2,458,025
Intangible assets and goodwill		587,255			518,599			483,739
Assets held for sale		93,502			48,624			2,342
Current tax assets		20,488			4,722			6,229
Deferred tax assets		49,863			280,130			232,007
Derivative assets		35,503			59,272			140,577
Net defined benefit assets		—			—			70,938
Other assets		196,832			158,404			128,846

Total assets		340,447,183			316,295,461			310,682,727

LIABILITIES					—			—
Financial liabilities at FVTPL (fair value through profit or loss) K-IFRS1109		2,282,686			—			—
Financial liabilities at FVTPL (fair value through profit or loss) K-IFRS1039		—			3,427,909			3,803,358
Deposits due to customers		248,690,939			234,695,084			221,020,411
Borrowings		16,202,986			14,784,706			18,769,515
Debentures		28,725,862			27,869,651			23,565,449
Provisions		389,862			410,470			428,477
Net defined benefit liability		138,682			43,264			64,666
Liabilities of a disposal group classified as held for sale		72,660			—			—
Current tax liabilities		156,559			232,600			171,192
Deferred tax liabilities		18,156			22,681			22,023
Derivative liabilities		51,408			67,754			7,221
Other financial liabilities		21,426,064			13,892,461			21,985,086
Other liabilities		338,275			283,981			299,376

Total liabilities		318,494,139			295,730,561			290,136,774

EQUITY
Owners’ equity:		21,739,931			20,365,892			20,386,160
Capital stock		3,381,392			3,381,392			3,381,392
Hybrid securities		3,161,963			3,017,888			3,574,896
Capital surplus		285,889			285,880			286,331
Other equity		(2,213,970	)		(1,939,274	)		(1,468,025	)
Retained earnings		17,124,657			15,620,006			14,611,566
Non-controlling interests		213,113			199,008			159,793

Total equity		21,953,044			20,564,900			20,545,953

Total liabilities and equity		340,447,183			316,295,461			310,682,727

Number of Consolidated Subsidiaries		65			53			74

Summary Consolidated Statement of Comprehensive Income


(The Bank and its Consolidated Subsidiaries)				(unit: in millions of Won, except per share amounts)


Classification	2018			2017			2016
OPERATING INCOME:		2,759,301			2,156,742			1,574,206
Net interest income		5,650,951			5,220,650			5,019,544
Net fees and commissions income		1,069,974			1,070,466			937,131
Dividend income		90,552			124,992			184,510
Net gain or loss on financial instruments at FVTPL (fair value through profit or loss) K-IFRS1109		214,443			—			—
Net gain or loss on financial instruments at FVTPL (fair value through profit or loss) K-IFRS1039		—			(104,827	)		114,387
Net gain or loss on financial assets at FVTOCI		2,047
Net gain or loss on available for sale financial assets		—			192,708			(1,035	)
Net gain or loss arising on financial assets at amortized cost		79,532			—			—
Impairment losses due to credit loss		(329,574	)		(785,133	)		(834,076	)
General and administrative expenses		(3,624,033	)		(3,530,801	)		(3,478,476	)
Other net operating income (expenses)		(394,591	)		(31,313	)		(367,779	)
Non-operating income		45,571			(207,236	)		(20,817	)
Net income before income tax expense from continuing operations		2,804,872			1,949,506			1,553,389
Income tax expense from continuing operations		753,223			419,418			275,856
Net income		2,051,649			1,530,088			1,277,533
Net income attributable to owners		2,033,182			1,512,148			1,261,266
Net income attributable to the non-controlling interests		18,467			17,940			16,267
Other comprehensive income (loss), net of tax		(92,236	)		(276,796	)		77,894
Items that will not be reclassified to profit or loss		(115,384	)		7,504			34,162
Items that may be reclassified to profit or loss		23,148			(284,300	)		43,732

Total comprehensive income		1,959,413			1,253,292			1,355,427

Comprehensive income attributable to the owners		1,943,885			1,249,057			1,332,614
Comprehensive income attributable to non-controlling interests		15,528			4,235			22,813
NET INCOME PER SHARE:		—			—
Basic earnings per common share		2,796			1,999			1,567
Diluted earnings per common share		2,796			1,999			1,567

2.	Condensed Financial Statements (Separate)

Summary Statement of Financial Position


(The Bank)		(unit: in millions of Won)


Classification	2018			2017			2016
ASSETS
Cash and cash equivalents		5,728,801			5,328,960			6,104,029
Financial assets at FVTPL (fair value through profit or loss) K-IFRS1109		3,877,858			—			—
Financial assets at FVTPL (fair value through profit or loss) K-IFRS1039		—			4,133,724			4,076,872
Financial assets at FVTOCI (other comprehensive income)		17,040,674			—			—
Available for sale financial assets		—			14,186,704			18,105,862
Securities at amortized cost		22,802,050			—			—
Held-to-maturity financial assets		—			16,638,727			13,792,266
Loans and other financial assets at amortized cost		260,350,949			—			—
Loans and receivables		—			248,810,624			241,508,048
Investments in subsidiaries and associates		4,193,775			4,148,795			3,779,169
Investment properties		367,117			350,235			348,393
Premises and equipment		2,350,342			2,374,590			2,342,280
Intangible assets		353,167			303,325			242,230
Assets held for sale		143,288			46,183			2,342
Deferred tax assets		7,360			238,543			162,211
Derivative assets		35,503			59,272			140,577
Net defined benefit assets		—			—			70,938
Other assets		146,995			117,889			96,926

Total assets		317,392,879			296,737,571			290,772,143

LIABILITIES
Financial liabilities at FVTPL (fair value through profit or loss) K-IFRS1109		2,279,373
Financial liabilities at FVTPL (fair value through profit or loss) K-IFRS1039		—			3,416,978			3,793,479
Deposits due to customers		237,426,765			224,384,156			211,382,380
Borrowings		14,081,092			13,662,984			16,060,821
Debentures		21,666,331			21,707,466			18,166,057
Provisions		283,501			368,027			380,473
Net defined benefit liability		136,163			14,284			—
Liabilities of a disposal group classified as held for sale		72,361			—			—
Current tax liabilities		110,127			212,376			148,672
Derivative liabilities		17,654			12,103			7,221
Other financial liabilities		20,097,011			13,029,421			20,827,284
Other liabilities		173,501			135,686			153,238

Total liabilities		296,343,879			276,943,481			270,919,625

EQUITY
Capital stock		3,381,392			3,381,392			3,381,392
Hybrid securities		3,161,963			3,017,888			3,574,896
Capital surplus		269,533			269,533			269,533
Other equity		(386,840	)		(135,282	)		138,542
Retained earnings		14,622,952			13,260,559			12,488,155

Total equity		21,049,000			19,794,090			19,852,518

Total liabilities and equity		317,392,879			296,737,571			290,772,143

Summary Statement of Comprehensive Income


(The Bank)		(unit: in millions of Won, except per share amounts)


Classification	2018			2017			2016
OPERATING INCOME:		2,415,691			1,790,558			1,270,501
Net interest income		4,727,718			4,390,603			4,222,447
Net fees and commissions income		1,002,647			931,021			842,883
Dividend income		75,986			125,599			220,015
Net gain or loss on financial instruments at FVTPL (fair value through profit or loss) K-IFRS1109		204,649			—			—
Net gain or loss on financial instruments at FVTPL (fair value through profit or loss) K-IFRS1039		—			(96,983	)		97,225
Net gain or loss on financial assets at FVTOCI		1,333
Net gain or loss on available for sale financial assets		—			135,003			35,525
Net gain or loss arising on financial assets at amortized cost*		44,166			—			—
Impairment losses due to credit loss		(58,823	)		(553,204	)		(640,443	)
General and administrative expenses		(3,189,336	)		(3,128,725	)		(3,115,371	)
Other net non-operating income (expenses)		(392,649	)		(12,756	)		(391,780	)
Non-operating income		69,940			(170,336	)		40,144
Net income before income tax expense		2,485,631			1,620,222			1,310,645
Income tax expense		674,727			344,110			245,043
Net income		1,810,904			1,276,112			1,065,602
Other comprehensive income (loss), net of tax		(64,682	)		(65,666	)		32,526
Items that will not be reclassified to profit or loss		(108,829	)		16,566			33,191
Items that may be reclassified to profit or loss		43,967			(82,232	)		(665	)

Total comprehensive income		1,746,042			1,210,446			1,098,128

NET INCOME PER SHARE:
Basic earnings per common share		2,466			1,648			1,277
Diluted earnings per common share		2,466			1,648			1,277

IV.

Independent Auditor’s Opinion

1.	Independent Auditor’s Opinion


	2018	2017	2016
Auditor	Deloitte Anjin LLC	Deloitte Anjin LLC	Deloitte Anjin LLC
Auditor’s Opinion	Unqualified Opinion	Unqualified Opinion	Unqualified Opinion

2.	Compensation to the Independent Auditor for the Past Three Years

a.	Audit Services


Term	Auditor	Description	Fee	Total Time
2018	Deloitte Anjin LLC	Closing audit	KRW 1,727 million		13,491 hours
		Interim audit (including internal accounting management system)			4,165 hours
		3Q review			8,821 hours
		1H review			8,169 hours
		1Q review			4,010 hours
2017	Deloitte Anjin LLC	Closing audit	KRW 1,786 million		15,883 hours
		Interim audit (including internal accounting management system)			5,827 hours
		3Q review			4,880 hours
		1H review			4,061 hours
		1Q review			4,020 hours
2016	Deloitte Anjin LLC	Closing audit	KRW 1,561 million		7,515 hours
		Interim audit (including internal accounting management system)			4,210 hours
		3Q review			4,991 hours
		1H review			3,526 hours
		1Q review			3,920 hours

b.	Non-Audit Services


Term	Date of Execution of Agreement	Description of Service	Service Term	Fees
2018	April 16, 2018	Tax adjustment	Each quarter and end of term	KRW 130 million
	April 16, 2018	PCAOB and SOX Auditing	May 1, 2018 ~ April 30, 2019	KRW 1,463 million
	May 11, 2018	Issuance of GMTN-related comfort letter	May 2018	USD 100,000
	July 30, 2018	Issuance of GMTN-related comfort letter	July 2018 ~ August 2018	USD 44,000
	December 28, 2018	Review financial statement for the establishment of holding company	January 2019	KRW 53 million
2017	March 15, 2017	Tax adjustment	Each quarter and end of term	KRW 120 million
	March 15, 2017	PCAOB and SOX Auditing	May 1, 2017 ~ April 30, 2018	KRW 1,288 million
	April 28, 2017	Issuance of GMTN-related comfort letter	April 2018	USD 100,000
	May 8, 2017	Issuance of GMTN-related comfort letter	May 2018	USD 10,000
2016	March 28, 2016	Tax adjustment	Each quarter and end of term	KRW 115 million
	March 28, 2016	PCAOB and SOX Auditing	May 1, 2016 ~ April 30, 2017	KRW 1,127 million
	May 13, 2016	Issuance of GMTN-related comfort letter	May 2016	USD 100,000
	September 20, 2016	Issuance of GMTN-related comfort letter	September 2016	USD 40,000
	September 21, 2016	Auditor’s certificate of financial ratios related to submission of documents for approval of internet only bank	September 2016	KRW 4 million

V.	Corporate Governance and Affiliated Companies

1.	About the Board of Directors

Composition of the Board of Directors

The board of directors consists of standing directors, outside directors and non-standing directors.

Committees under the Board of Directors

We currently have the following management committees serving under the board of directors:

(a)

Board of Directors Management Committee

(b)

Risk Management Committee

(c)

Compensation Committee

(d)

Audit Committee

(e)

Committee for Recommending Officer Candidates


Name of Committee	Composition	Names of Members
Audit Committee	Two outside directors, One standing auditor	Chan-Hyong Chung (outside director) Joon-Ho Kim (outside director) Jung-Sik Oh (standing director)

Board of directors management committee	One standing director, Five outside directors One non-standing director	Tae-Seung Sohn (standing director) Sang-Yong Park (outside director) Sung-Tae Ro (outside director) Chan-Hyong Chung (outside director) Soo-Man Park (outside director) Joon-Ho Kim (outside director) Jae-Kyung Lee (non-standing director)

Risk management committee	Three outside directors One non-standing director	Sung-Tae Ro (outside director) Sang-Yong Park (outside director) Soo-Man Park (outside director) Jae-Kyung Lee (non-standing director)

Compensation committee	Five outside directors One non-standing director	Joon-Ho Kim (outside director) Sung-Tae Ro (outside director) Sang-Yong Park (outside director) Chan-Hyong Chung (outside director) Soo-Man Park (outside director) Jae-Kyung Lee (non-standing director)

Committee for recommending officer candidates	One standing director, Five outside directors	Tae-Seung Sohn (standing director) Soo-Man Park (outside director) Sung-Tae Ro (outside director) Sang-Yong Park (outside director) Chan-Hyong Chung (outside director) Joon-Ho Kim (outside director)

*	Non-standing director Kwang-Woo Choi’s term expired and Chang-Sik Bae was newly appointed as a non-standing director at the Annual General Meeting of shareholders held on March 23, 2018.

**	Non-standing director, Chang-Sik Bae resigned and Jae-Kyung Lee was newly appointed as a non-standing director. Joon-Ho Kim, Soo-Man Park and Chan-Hyong Chung were newly appointed as outside directors at the Extraordinary General Meeting of shareholders on December 28, 2018.

***	Sang-Hoon Shin, Zhiping Tian and Dong-Woo Chang’s term expired as an outside director on December 30, 2018.

2.	Affiliated Companies (As of December 31, 2018)

LOGO

VI.

Shareholder Information

1.	Share Distribution

a.	Share Information of the Largest Shareholder and Specially Related Parties

As of December 31, 2018

(units: shares, %)

Name

Relation

Type

Shares Held

Notes

Beginning balance

Ending balance

Stock

Share

Stock

Share

Korea Deposit Insurance Corporation (KDIC)

Largest

Shareholder

Common

124,604,797

18.43

124,604,797

18.43

Note 1)

Total

Common

124,604,797

18.43

124,604,797

18.43

Others

—

Note 1) Refer to ‘b. Changes in the largest shareholder’ for changes in the number and percentage of shares held by the KDIC

b.	Changes in the largest shareholder


As of December 31, 2018		(units: shares, %)


Change of Date	Largest Shareholder	Stock Held	Share	Notes
October 2, 2015	Korea Deposit Insurance Corporation	345,142,556	51.06	Change in the share ownership ratio due to the retirement of shares
December 1, 2016	Korea Deposit Insurance Corporation	239,097,161	35.37	Sale of stake (Tongyang Life Insurance, Eugene Asset Management, Mirae Asset Global Investments, Korea Investment & Securities)
December 8, 2016	Korea Deposit Insurance Corporation	185,017,161	27.37	Sale of stake (Kiwoom Securities, Hanwha Life Insurance)
December 14, 2016	Korea Deposit Insurance Corporation	157,977,161	23.37	Sale of stake ( IMM PE)
January 31, 2017	Korea Deposit Insurance Corporation	144,457,161	21.37	Sale of stake (IMM PE)
May 11, 2017	Korea Deposit Insurance Corporation	143,857,161	21.28	Exercise of Shinhan Investment Corp.’s call option (0.09%)
June 16, 2017	Korea Deposit Insurance Corporation	132,897,007	19.66	Exercise of call option of Employee Stock Ownership Association of Woori Bank (1.62%)
June 22, 2017	Korea Deposit Insurance Corporation	131,697,007	19.48	Exercise of NH Investment & Securities’ call option (0.18%)
June 27, 2017	Korea Deposit Insurance Corporation	130,697,007	19.33	Exercise of NH Investment & Securities’ call option (0.15%)
June 28, 2017	Korea Deposit Insurance Corporation	128,185,796	18.96	Exercise of NH Investment & Securities’ call option ( 0.37%)
July 3, 2017	Korea Deposit Insurance Corporation	126,935,796	18.78	Exercise of Hyosung Capital’s call option (0.18%)
September 28, 2017	Korea Deposit Insurance Corporation	125,205,147	18.52	Exercise of call option of Employee Stock Ownership Association of Woori Bank (0.26%)
December 7, 2017	Korea Deposit Insurance Corporation	124,604,797	18.43	Exercise of call option of Employee Stock Ownership Association of Woori Bank (0.09%)

*	Upon the consummation of the merger of Woori Finance Holdings with and into Woori Bank on November 1, 2014, 596,690,380 shares of the Bank were cancelled and 676,278,371 new shares were issued.

Note 1) As of December 31, 2018, KDIC owned 18.43% of our outstanding common stock, which became 0% pursuant to a comprehensive stock transfer in connection with the newly established financial holding company, Woori Financial Group Inc., on January 11, 2019.

c.	Share Ownership of More Than 5%


As of December 31, 2018				(units: shares, %)


	Name	Shares				Notes
	Name	No. of shares		Percentage of shareholding		Notes
Share ownership of more than 5%	Korea Deposit Insurance Corporation		124,604,797		18.43		—
	National Pension Service		59,191,199		8.76		—
	Nobis1, Inc. (IMM PE)		40,560,000		6.00		—
Employee Stock Ownership Association			40,911,986		6.05		—

d.	Minority Shareholders

As of December 31, 2018


Items	Number of shareholders		Ratio(%)		Number of shares		Ratio(%)
Minority Shareholders		41,991		99.97		327,988,293		48.52

2.	Stock Price and Stock Market Performance

a.	Domestic Stock Market

(units: Won, shares)


Period		July 2018		August 2018		September 2018		October 2018		November 2018		December 2018
Common Stock	High		17,000		17,150		16,900		17,000		16,050		16,500
	Low		16,250		16,100		15,750		15,400		15,650		15,550
	Average		16,614		16,455		16,250		16,360		15,880		15,879
Monthly Trade Volume	High		8,960,634		2,241,052		2,025,893		3,013,301		1,752,554		2,547,965
	Low		878,523		735,656		645,286		719,280		422,748		889,993
	Monthly Total		42,161,055		28,052,979		19,022,067		26,848,229		20,698,451		26,667,871

*	Source: KRX KOSPI Market

*	Share prices are based on closing prices.

b.	Foreign Stock Market (NYSE)

(units: US Dollars, ADRs)


Period		July 2018		August 2018		September 2018		October 2018		November 2018		December 2018
ADR	High		46.37		46.30		45.33		45.75		43.77		44.56
	Low		43.51		42.47		42.44		40.74		42.00		41.19
	Average		44.84		44.11		43.79		43.37		42.70		42.58
Won Conversion	High		51,832		51,759		50,439		50,803		49,062		50,157
	Low		49,118		47,834		47,664		46,387		47,405		46,059
	Average		50,346		49,455		49,068		49,048		48,189		47,814
Monthly Trade Volume	High		60,600		41,900		31,000		26,000		36,200		111,000
	Low		3,900		3,900		2,500		4,300		5,700		5,100
	Monthly Total		418,000		290,100		184,900		295,400		289,300		414,100

*	Source: standard trading rate (daily and monthly average) (Seoul Money Brokerage, www.smbs.biz)

*	One ADR represents three common shares.

*	Share prices are based on closing prices.

VII.

Directors and Employee Information

1.	Directors and Executives

As of December 31, 2018

Position

Name

Common
Stock
Owned

Term
Commencement Date

Expiration of Term

President and CEO

Registered

Tae-Seung Sohn

15,296

December 22, 2017 ~

December 21, 2020

Standing Member of Audit Committee

Registered

Jung-Sik Oh

5,000

March 24, 2017 ~

Note 1)

Outside Director

Registered

Sang-Yong Park

1,000

December 30, 2016 ~

December 30, 2019

Outside Director

Registered

Sung-Tae Ro

5,000

December 30, 2016 ~

December 30, 2019

Outside Director

Registered

Chan-Hyong Jung

—

December 28, 2018 ~

Note 2)

Outside Director

Registered

Soo-Man Park

—

December 28, 2018 ~

Note 2)

Outside Director

Registered

Joon-Ho Kim

—

December 28, 2018 ~

Note 2)

Non-standing Director

Registered

Jae-Kyung Lee

—

December 28, 2018 ~

Note 2)

Executive Vice President

Non-Registered

Chai-Pong Cheong

—

November 30, 2018 ~

November 29, 2019

Executive Vice President

Non-Registered

Jeong-Ki Kim

—

November 30, 2018 ~

November 29, 2019

Executive Vice President

Non-Registered

Tae-Joong Ha

—

November 30, 2018 ~

November 29, 2019

Executive Vice President

Non-Registered

Jong-In Lee

—

November 30, 2018 ~

November 29, 2019

Executive Vice President

Non-Registered

Won-Duk Lee

2,000

November 30, 2018 ~

November 29, 2019