2013년 3분기 검토보고서 en

HYUNDAI CARD CO., LTD.AND ITS SUBSIDIARIES

CONDENSED CONSOLIDATED FINANCIAL STATEMENTSAS OF SEPTEMBER 30, 2013,AND FOR THREE MONTHS AND NINE MONTHS ENDEDSEPTEMBER 30, 2013 AND 2012,AND INDEPENDENT ACCOUNTANTS' REVIEW REPORT

Indepe English T To the ShHyundai We have subsidiariof financiincome foconsolidacash flowpolicies a Managem The Comconsolidapreparatiofraud or e Independ Our respobased on We conduof Korea.financial do not ex Review c Based oncondenseaccordanc

endent Ac

Translation of

hareholders anCard Co., Ltd

reviewed the ies (collectiveial position asor the three mated statement

ws for the nineand other expl

ment’s respon

mpany’s managated financial on of condenserror.

dent accounta

onsibility is toour reviews.

ucted our revi. A review is ldata, and this

xpress an audit

conclusion

n our reviews, ed consolidatece with Korea

ccountant

f a Report Orig

nd Board of Dd.:

accompanyinely, the “Comps of Septembe

months and nints of changes ie months endelanatory inform

nsibility for t

gement is respstatements an

sed consolidat

ants’ respons

o express a con

iews in accordlimited primar provides lesst opinion.

nothing has cd financial sta

an Internationa

ts’ Review

ginally Issued

irectors of

ng condensed cpany”). The fir 30, 2013, an

ne months endin shareholderd September 3mation.

the condensed

ponsible for thnd for such intted financial s

sibility

nclusion on th

dance with starily to inquiries assurance tha

come to our attatements of thal Financial S

w Report

d in Korean

consolidated ffinancial statemnd the related ded Septemberrs’ equity and30, 2013 and

d consolidate

he preparationternal control statements that

he accompany

andards for reves of companyan an audit. W

ttention that cahe Company aStandards 1034

financial statements consist condensed cor 30, 2013 and

d the related co2012, and a su

ed financial st

n and fair preseas management are free from

ying condense

view of interimy personnel an

We have not pe

auses us to bere not present4, Interim Fin

ments of Hyuof the condennsolidated sta

d 2012, the relondensed consummary of sig

tatements

entation of thent determines

m material mis

d consolidated

m financial stand analytical performed an au

lieve that the ted fairly, in alancial Report

undai Card Consed consolidaatements of colated condensesolidated stategnificant acco

e accompanyis is necessary tsstatement, wh

d financial sta

atements in thprocedures apaudit, and acco

accompanyinall material resting.

o., Ltd. and its ated statementomprehensive ed ements of ounting

ng condensedto enable the hether due to

atements

he Republic plied to

ordingly, we

g spects, in

t

d

Deloitte Anjin LLC 9F., One IFC, 23, Yoido-dong, Youngdeungpo-gu, Seoul 150-945, Korea Tel : +82 (2) 6676 1000 Fax : +82 (2) 6674 2114 www.deloitteanjin.co.kr

Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limitedby guarantee, and its network of member firms, each of which is a legally separate and independent entity. Please see www.deloitte.com/kr/about for a detailed description of the legal structure of Deloitte Touche Tohmatsu Limited and its member firms. Member of Deloitte Touche Tohmatsu Limited

Emphasi As explaicondenseconsolida2012, theconsolidaamendme Others We have consolidaequity anconsolidaaccordancstatementaddition, comparatmaterial r

Novembe

This repomay haveSuch evenstatement

is of matters

ined in Note 2ed consolidateated statemente related condeated statementents. Meanwh

also audited tated statementnd the related cated financial ce with auditits, we expressthe restated c

tive purposes respects, with

er 14, 2013

ort is effectivee occurred betnts or circumsts and may res

2, the Compand statement oft of compreheensed consolidt of cash flows

hile, our review

the consolidatt of compreheconsolidated sstatements), a

ing standards gsed an unqualiondensed conin the accompthe audited c

e as of Novemtween the accostances could sult in modific

ny applied the f financial posnsive incomedated statemens for the ninew conclusion i

ed statement onsive income,statement of call expressed igenerally acceified opinion insolidated statpanying condeonsolidated st

ber 14, 2013, ountants’ reviesignificantly cations to the

effect of chansition as of Defor the three mnt of changes months endedis not affected

of financial po, the related co

cash flows (noin Korean wonepted in the Rin our indepentement of finanensed consolidtatement of fin

Notice to Rea

the review reew report dateaffect the accoaccountants’ r

nges in accounecember 31, 2months and niin shareholde

d September 3d by these mat

osition as of Donsolidated stt presented inn, for the year

Republic of Kondent auditorsncial position dated financianancial positio

aders

port date. Cere and the timeompanying coreview report

nting policy re2012, and the rine months eners’ equity and30, 2012, weretters.

December 31, tatement of chthe accompan

r ended Decemorea. On thoses’ report dated

as of Decembl statements, don as of Decem

rtain subseque the accountan

ondensed cons.

etrospectivelyrelated conden

nded Septembd the related ce restated appl

2012, and thehanges in sharnying conden

mber 31, 2012e consolidatedd March 12, 20ber 31, 2012, does not diffember 31, 2012

ent events or cnts’ review resolidated finan

y and the nsed er 30,

condensed lying the

e related reholders’ sed

2, in d financial 013. In presented for

er, in all 2.

circumstances port is read. ncial

HYUNDAI CARD CO., LTD. AND ITS SUBSIDIARIES (the “Company”) CONDENSED CONSOLIDATED FINANCIAL STATEMENTS AS OF SEPTEMBER 30, 2013 AND FOR THE THREE MONTHS AND NINE MONTHS ENDED SEPTEMBER 30, 2013 AND 2012

The accompanying financial statements, including all footnote disclosures, were prepared by, and are the responsibility of, the Company.

Chung, Tae Young Chief Executive Officer

HYUNDAI CARD CO., LTD. AND ITS SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

AS OF SEPTEMBER 30, 2013, AND DECEMBER 31, 2012

(Unit: Korean won) September 30, 2013 December 31, 2012 ASSETS: CASH AND BANK DEPOSITS (Notes 5, 27 and 28):

Cash and cash equivalents ￦ 915,886,034,481 ￦ 791,547,295,193Bank deposits 33,031,500,000 33,029,000,000

Total cash and bank deposits 948,917,534,481 824,576,295,193

INVESTMENT FINANCIAL ASSETS (Note 28): Financial assets available for sale (“AFS”) 1,766,969,764 1,766,969,764

Total investment financial assets 1,766,969,764 1,766,969,764 CARD ASSETS (Notes 6, 7, 25, 26, 27 and 28):

Card receivables, net of present value discounts, deferred origination fees and allowance for doubtful accounts

5,917,119,594,047

6,530,709,506,111

Cash advances, net of allowance for doubtful accounts 814,655,310,891 906,232,767,098Card loans, net of present value discounts, deferred loan

origination fees and allowance for doubtful accounts 2,497,903,061,789 2,270,095,402,706Total card assets 9,229,677,966,727 9,707,037,675,915

PROPERTY AND EQUIPMENT (Notes 8, 10 and 13):

Land 122,011,816,788 122,011,816,788Buildings, net of accumulated depreciation 72,841,456,005 60,330,598,734Vehicles, net of accumulated depreciation 42,847,827 163,464,977Fixtures and equipment, net of accumulated depreciation 50,890,758,258 56,690,437,564Finance lease assets 555,668,252 1,389,170,627Construction in progress 28,280,368,714 23,797,602,168

Total property and equipment 274,622,915,844 264,383,090,858

OTHER FINANCIAL ASSETS (Notes 5, 7, 17, 27 and 28):

Other accounts receivable, net of allowance for doubtful accounts 88,610,557,040 85,387,050,368

Accrued revenue, net of allowance for doubtful accounts 45,203,048,323 43,654,761,801Guarantee deposits 35,066,295,177 52,348,673,218Derivative assets 2,513,111,687 901,423,501

Total other financial assets 171,393,012,227 182,291,908,888

OTHER NON-FINANCIAL ASSETS (Notes 7, 9, 23 and 26):

Advanced payments, net of allowance for doubtful accounts 9,910,039,513 11,254,701,307

Prepaid expenses 46,263,421,666 48,279,724,993Intangible assets 111,831,434,907 74,664,032,134Deferred income tax assets 142,579,019,579 135,666,642,303Others 2,666,030,832 2,342,574,040

Total other non-financial assets 313,249,946,497 272,207,674,777Total Assets ￦10,939,628,345,540 ￦11,252,263,615,395

(Continued)


CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (CONTINUED)

AS OF SEPTEMBER 30, 2013, AND DECEMBER 31, 2012

(Unit: Korean won) September 30, 2013 December 31, 2012 LIABILITIES AND SHAREHOLDERS’ EQUITY: BORROWINGS:

Borrowings (Notes 11, 27 and 28) ( ￦ 285,000,000,000 ￦ 487,500,000,000Bonds payable, net of discounts on bonds (Notes 12, 27 and 28) 6,403,902,549,696 6,533,175,825,125

Total borrowings 6,688,902,549,696 7,020,675,825,125

RETIREMENT BENEFIT (Note 14): Retirement benefit obligation 17,721,333,027 10,695,054,186

Total retirement benefit 17,721,333,027 10,695,054,186

OTHER FINANCIAL LIABILITIES (Notes 13, 17, 26, 27 and 28): Accounts payable 1,066,263,643,626 1,186,714,518,145Withholdings 122,808,432,326 123,824,521,370Accrued expenses 153,891,747,753 139,353,829,793Finance lease liabilities 592,178,575 1,452,239,137Derivative liabilities 42,840,883,487 53,554,957,780Guarantee deposits received 8,674,002,020 12,776,716,986

Total other financial liabilities 1,395,070,887,787 1,517,676,783,211

OTHER NON-FINANCIAL LIABILITIES (Notes 15, 16, 24 and 26): Withholdings 8,102,396,099 6,968,385,070Unearned revenue 401,748,170,053 397,830,493,299Provisions 82,605,595,367 75,687,285,760Current tax liability 20,666,075,185 30,439,361,053

Total other non-financial liabilities 513,122,236,704 510,925,525,182

SHAREHOLDERS’ EQUITY : Share capital (Note 18) 802,326,430,000 802,326,430,000Capital surplus (Note 18) 57,704,443,955 57,704,443,955Retained earnings (Notes 2, 19 and 21) 1,475,947,774,108 1,348,744,482,014Reserves (Notes 2 and 20) (11,187,129,737) (16,504,748,278)Non-controlling interest 19,820,000 19,820,000

Total shareholders’ equity 2,324,811,338,326 2,192,290,427,691Total Liabilities and Shareholders’ Equity ￦ 10,939,628,345,540 ￦ 11,252,263,615,395

(Concluded)

See accompanying notes to condensed consolidated financial statements.


CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

FOR THE THREE MONTHS AND NINE MONTHS ENDED SEPTEMBER 30, 2013 AND 2012

(Unit: Korean won) 2013 2012

Three months

ended September 30. Nine months

ended September 30. Three months


ended September 30. OPERATING REVENUE:

Card income (Notes 26, 28 and 30) ￦ 615,503,498,368 ￦1,823,716,549,587 ￦ 596,675,846,452 ￦ 1,779,519,921,306

Interest income (Notes 28 and 29) 4,692,125,207 15,213,685,757 6,038,155,839 16,084,879,172Gain on disposal of financial assets

AFS (Note 28) 27,064,300 81,187,900 67,000,000 134,000,000

Dividends income 173,175,497 351,635,696 244,701,638 477,523,977Reversal of provision for unused

credit limits (Note 16) (433,850,851) - - - Other operating revenue (Notes 28 and 31) (51,525,302,219) 36,548,152,029 22,306,481,590 63,102,253,566

Total operating revenue 568,436,710,302 1,875,911,210,969 625,332,185,519 1,859,318,578,021 OPERATING EXPENSES: Card expenses (Notes 26, 28 and 30) 247,601,906,452 767,312,825,052 246,525,489,915 776,087,115,225

Interest expenses (Notes 28 and 29) 76,883,580,431 233,871,902,644 85,961,425,722 259,202,823,496General and administrative

expenses (Notes 2, 14, 22 and 26) 171,136,895,725 466,803,948,744 156,797,114,339 437,209,790,167

Securitization expenses 55,939,501 256,953,518 110,229,971 286,096,769Bad debt expense and loss on

disposal of loans 62,065,464,744 176,819,302,743 45,863,667,425 144,050,509,724Transfer to provision for unused

credit limits (Note 16) 1,648,987,106 1,648,987,106 2,694,568,760 4,195,969,575Other operating expenses (Notes 28 and 31) (48,907,931,140) 58,401,349,462 12,460,817,176 42,129,165,178

Total operating expenses 510,484,842,819 1,705,115,269,269 550,413,313,308 1,663,161,470,134

OPERATING INCOME 57,951,867,483 170,795,941,700 74,918,872,211 196,157,107,887 NON-OPERATING INCOME: Gain from sale of property and

equipment 19,145,368 99,941,180 - 3,095,000

Rental revenue (Note 26) 851,881,861 2,213,659,170 635,794,476 1,520,112,233

Miscellaneous gain 52,110,916 147,879,835 48,072,787 151,986,009

Total non-operating income 923,138,145 2,461,480,185 683,867,263 1,675,193,242 NON-OPERATING EXPENSES: Loss from sale of property and

equipment 215,433,484 808,977,728 40,341,432 121,936,888

Donations 168,663,961 433,836,151 86,357,896 986,940,234

Total non-operation expenses 384,097,445 1,242,813,879 126,699,328 1,108,877,122 (Continued)


CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (CONTINUED)

FOR THE THREE MONTHS AND NINE MONTHS ENDED SEPTEMBER 30, 2013 AND 2012

(Unit: Korean won) 2013 2012

Three months


ended September 30. Three months


ended September 30.

INCOME BEFORE INCOME TAX ￦ 58,490,908,183 ￦ 172,014,608,006 ￦ 75,476,040,146 ￦ 196,723,424,007INCOME TAX EXPENSE (Notes 2 and 23) 14,603,959,328 44,811,315,912 17,516,265,154 32,651,334,628INCOME FOR THE PERIOD 43,886,948,855 127,203,292,094 57,959,774,992 164,072,089,379 OTHER COMPREHENSIVE INCOME FOR THE PERIOD (Note 2) Items not reclassified subsequently to

profit or loss (59,959,765) 293,944,082 (1,308,437,959) (1,707,291,124) Remeasurements of net defined

benefit liability (79,102,593) 387,789,026 (1,726,171,450) (2,252,362,961) Income tax effect 19,142,828 (93,844,944) 417,733,491 545,071,837 Items reclassified subsequently to profit

or loss 4,671,908,118 5,023,674,459 (3,020,277,721) 539,512,646 Cash flow hedging gains or losses 6,163,467,173 6,604,762,479 (3,992,498,414) 726,701,495 Income tax effect (1,491,559,055) (1,581,088,020) 972,220,693 (187,188,849)Total other comprehensive income (loss) 4,611,948,353 5,317,618,541 (4,328,715,680) (1,167,778,478)

TOTAL COMPREHENSIVE INCOME FOR THE PERIOD (Note 2) ￦ 48,498,897,208 ￦ 132,520,910,635 ￦ 53,631,059,312 ￦ 162,904,310,901

Net income attributable to: Owners of the Company ￦ 43,886,948,855 ￦ 127,203,292,094 ￦ 57,959,774,992 ￦ 164,072,089,379 Non-controlling interests - - - - Total comprehensive income attributable to:

Owners of the Company 48,498,897,208 132,520,910,635 53,631,059,312 162,904,310,901 Non-controlling interests - - - -

(Concluded)



CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2013 AND 2012

(Unit: Korean won)

Share capital

Capital surplus Reserves

Attributable to owners of the

Company

Non-controlling

interests Total

Share premium

Other capital

Retained earnings

Cash flow hedging

reserves

Remeasurements of the net defined

benefit liability

Balance at January 1, 2012 ￦802,326,430,000 ￦ 45,399,364,539 ￦12,305,079,416 ￦ 1,148,396,655,980 ￦(11,764,319,031) ￦ - ￦ 1,996,663,210,904 ￦ 19,820,000 ￦ 1,996,683,030,904

Changes in accounting policy - - - 6,049,230,616 - (6,049,230,616) - - -

Restated balance 802,326,430,000 45,399,364,539 12,305,079,416 1,154,445,886,596 (11,764,319,031) (6,049,230,616) 1,996,663,210,904 19,820,000 1,996,683,030,904

Comprehensive income (loss)

Net income - - - 164,072,089,379 - - 164,072,089,379 - 164,072,089,379Other

comprehensive income (loss) - - - - 539,512,646 (1,707,291,124) (1,167,778,478) - (1,167,778,478)

Acquisition of subsidiaries - - - - - - - 9,910,000 9,910,000

Balance at September 30, 2012 802,326,430,000 45,399,364,539 12,305,079,416 1,318,517,975,975 (11,224,806,385) (7,756,521,740) 2,159,567,521,805 29,730,000 2,159,597,251,805

Balance at January 1, 2013 802,326,430,000 45,399,364,539 12,305,079,416 1,339,725,219,219 (7,485,485,483) - 2,192,270,607,691 19,820,000 2,192,290,427,691

Changes in accounting policy - - - 9,019,262,795 - (9,019,262,795) - - -

Restated balance 802,326,430,000 45,399,364,539 12,305,079,416 1,348,744,482,014 (7,485,485,483) (9,019,262,795) 2,192,270,607,691 19,820,000 2,192,290,427,691

Comprehensive income (loss) Net income - - - 127,203,292,094 - - 127,203,292,094 - 127,203,292,094Other

comprehensive income (loss) - - - - 5,023,674,459 293,944,082 5,317,618,541 - 5,317,618,541

Balance at September 30, 2013 ￦802,326,430,000 ￦ 45,399,364,539 ￦ 12,305,079,416 ￦ 1,475,947,774,108 ￦ (2,461,811,024) ￦ (8,725,318,713) ￦ 2,324,791,518,326 ￦ 19,820,000 ￦ 2,324,811,338,326



CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS


(Unit: Korean won)

Nine months ended

September 30, 2013 Nine months ended

September 30, 2012

CASH FLOWS FROM OPERATING ACTIVITIES: Income for the period ￦ 127,203,292,094 ￦ 164,072,089,379 Income tax expense 44,811,315,912 32,651,334,628 Interest income (15,213,685,757) (16,084,879,172)Interest expense 233,871,902,644 259,202,823,496 Dividend received (351,635,696) (477,523,977)Bad debt expense and loss on disposal of receivables 176,819,302,743 144,050,509,724 Retirement benefits 7,482,533,598 7,036,423,798 Depreciation 21,040,053,626 20,059,508,388 Amortization 11,742,939,459 10,483,501,883 Loss on foreign currency translation 3,561,906,906 15,577,385 Loss on valuation of derivatives - 16,920,500,000 Increase in provision for unused credit limit 1,648,987,106 4,195,969,575 Increase (decrease) in provision for others 8,481,816,567 (5,975,217,893)Loss from sale of property and equipment 808,977,728 121,936,888 Other operating losses 969,812,156 1,520,533,350 Reversal of impairment loss of financial assets AFS (81,187,900) (134,000,000)Gain on foreign currency translation - (16,928,592,243)Gain on valuation of derivatives (3,600,000,000) - Amortization of present value discounts of card asset (14,108,354,577) (33,738,751,769)Amortization of deferred origination fees of card assets (14,918,956,773) (14,445,419,864)Gain from sale of property and equipment (99,941,180) (3,095,000)Other operating gains (123,414,693) (161,996,480)

Changes in working capital: Decrease in card assets 329,116,979,571 11,252,039,201 Increase in other financial assets (5,564,373,938) (25,405,773,592)Decrease (increase) in other non-financial assets 2,071,998,701 (3,003,352,665)Decrease in derivative assets - 1,865,000,001 Decrease in retirement benefit obligations (1,816,743,346) (3,471,845,376)Decrease (increase) in plan asset 1,764,412,740 (2,921,022,539)Decrease in derivative liabilities (2,121,000,000) (1,971,945,814)Decrease in capital lease liabilities (860,060,562) (816,734,675)Increase (decrease) in other financial liabilities (125,483,605,999) 138,581,999,707 Increase in other non-financial liabilities 3,875,924,905 33,558,298,891

Cash generated from operating activities: Interest received 15,982,156,562 18,114,512,272 Interest paid (217,260,747,497) (241,343,869,709)Dividend received 351,635,696 477,523,977 Income tax paid (63,171,912,020) (75,832,343,246)

Net cash provided by operating activities 526,830,328,776 421,463,718,529

(Continued)


CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (CONTINUED)


(Unit: Korean won)

Nine months ended

September 30, 2013 Nine months ended

September 30, 2012

CASH FLOWS FROM INVESTING ACTIVITIES:

Disposal of financial assets AFS ￦ 81,187,900 ￦ 134,000,000 Disposal of property and equipment 166,042,052 3,100,000 Disposal of intangible assets - 1,250,000,000 Net decrease in guarantee deposits 17,324,129,890 9,185,111,200 Net decrease (increase) in bank deposit (2,500,000) 2,500,000 Acquisition of property and equipment (31,541,231,612) (85,488,616,685)Acquisition of intangible assets (48,468,452,668) (7,272,376,051)

Net cash used in investing activities (62,440,824,438) (82,186,281,536)

CASH FLOWS FROM FINANCING ACTIVITIES: Increase in borrowings 3,715,000,000,000 5,750,000,000,000 Proceeds from issue of bonds payable 2,524,142,398,760 2,484,440,702,435 Acquisition of subsidiaries - 9,910,000 Repayment of borrowings (3,917,500,000,000) (6,170,000,000,000)Repayment of bonds payable (2,661,693,163,810) (2,341,984,500,000)

Net cash used in financing activities (340,050,765,050) (277,533,887,565)

NET INCREASE IN CASH AND CASH EQUIVALENTS 124,338,739,288 61,743,549,428 CASH AND CASH EQUIVALENTS, BEGINNING OF

THE PERIOD 791,547,295,193 830,022,903,023 CASH AND CASH EQUIVALENTS, END OF THE

PERIOD ￦ 915,886,034,481 ￦ 891,766,452,451

(Concluded)



NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

AS OF SEPTEMBER 30, 2013, AND DECEMBER 31, 2012, AND

FOR THE THREE MONTHS AND NINE MONTHS ENDED SEPTEMBER 30, 2013 AND 2012 1. GENERAL:

Hyundai Card Co., Ltd. (the “Parent”) and its subsidiaries (the “Company”) is engaged in the credit card business under the Specialized Credit Financial Business Law of Korea. On September 15, 1995, the Parent acquired the credit card business of Korea Credit Circulation Co., Ltd., and on September 16, 1995, the Korean government granted permission to the Parent to engage in the credit card business. As of September 30, 2013, the Parent has approximately 7.17 million card members, 2.03 million registered merchants and 165 marketing centers, branches and posts. Its headquarters is located at Yoido, Seoul. As of September 30, 2013, the total common stock of the Parent is ￦802,326 million. The shareholders of the Parent and their respective ownerships as of September 30, 2013, and December 31, 2012, are as follows:

Shareholder September 30, 2013 December 31, 2012 Number of shares % of ownership Number of shares % of ownership

Hyundai Motor Co., Ltd. 59,301,937 36.96 50,572,187 31.52Kia Motors Co., Ltd. 18,422,142 11.48 18,422,142 11.48Hyundai Steel Co., Ltd. - 0.00 8,729,750 5.44GE Capital Int'l Holdings 69,000,073 43.00 69,000,073 43.00Hyundai Commercial Inc. 8,889,622 5.54 8,889,622 5.54Others 4,851,512 3.02 4,851,512 3.02Totals 160,465,286 100.00 160,465,286 100.00

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:

The Company maintains its official accounting records in the Republic of Korean won (“Won”) and prepares condensed consolidated financial statements in conformity with Korean statutory requirements and Korean International Reporting Standards (“K-IFRS”), in Korean language (Hangul). Accordingly, these condensed consolidated financial statements are intended for use by those who are informed about K-IFRS and Korean practices. Certain information included in the Korean language financial statements, but not required for a fair presentation of the Company’s financial position, operating results, changes in shareholders’ equity or cash flows, is not presented in the accompanying condensed consolidated financial statements.

(1) Basis of Preparation The Company’s interim condensed consolidated financial statements for the nine months ended September 30, 2013, are prepared in accordance with K-IFRS 1034, Interim Financial Reporting. The Company’s accounting policies applied for the accompanying interim condensed consolidated financial statements are the same as the policies applied for the preparation of condensed consolidated financial statements for the year ended December 31, 2012, except for the effects from the introduction of new and revised accounting standards or interpretations as described below.

1) Accounting standards and interpretations that were newly applied for the nine months ended September 30,

2013, and changes in the Company’s accounting policies are as follows: Amendment to K-IFRS 1001, Presentation of financial statements: Presentation of Items of Other Comprehensive Income (Revised)

The amendments to K-IFRS 1001 require the Company to present items in the other comprehensive income section to be grouped into those that will not be reclassified subsequently to profit or loss, and will be reclassified subsequently to profit or loss when specific conditions are met. These amendments have an effect only on presentation of consolidated financial statements and do not have an effect on the Company’s financial position or operating results. The comparative consolidated financial statements are restated retrospectively applying the amendments.

K-IFRS 1019, Employee Benefits (Revised)

The amendments to K-IFRS 1019 require the recognition of actuarial gains and losses in other comprehensive income and hence eliminate the ‘corridor approach’ and ‘immediate recognition in profit and loss approach’ permitted under the previous version. Expected return on plan assets is measured using the discount rate used in measuring defined benefit obligations instead of using an independent expected return and presented in net interest on the net defined benefit liability. Meanwhile, the Company shall recognize past service cost as an expense at the earlier date between when the plan amendment or curtailment occurs and when the entity recognizes related restructuring costs or termination benefits. The Company applied the effect of changes in accounting policy retrospectively and the comparative consolidated financial statements are restated retrospectively applying the amendments.

K-IFRS 1107, Financial Instruments: Disclosures – Offsetting Financial Assets and Financial Liabilities (Revised)

The amendments to K-IFRS 1107 increase the disclosure requirements to include information about offsetting financial assets and financial liabilities. The revised accounting standards require disclosure of information on conditional rights of setoff that are enforceable and exercisable only in the events mentioned in agreements regardless of meeting some or all of the offsetting criteria in K-IFRS 1032. The Company discloses the information comparatively (see Note 28 (2)).

K-IFRS 1110, Consolidated Financial Statements (Issued)

The standard supersedes K-IFRS 1027 Consolidated and Separate Financial Statements and SIC-2012 Consolidation – Special Purpose Entities. K-IFRS 1110 establishes a single source of guidance in the application of definition of control. The standard states that an investor controls an investee when it is exposed, or has rights, to variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee. These enactments referred above do not have an effect on the Company’s consolidated financial statements and disclosures.

K-IFRS 1111, Joint Arrangements (Issued)

K-IFRS 1111 deals with how a joint arrangement of which two or more parties have joint control should be determined. Under K-IFRS 1111, joint arrangements are classified as joint operations or joint ventures, depending on the rights and obligations of the parties to the arrangements. A joint operation is a joint arrangement whereby the parties that have joint control of the arrangement (i.e., joint operators) have rights to the assets, and obligations for the liabilities, relating to the arrangement. A joint venture is a joint arrangement whereby the parties that have joint control of the arrangement (i.e., joint venturers) have rights to the net assets of the arrangement. Under joint operations, a joint operator recognizes and measures assets, liabilities, related revenues and expenses in relation to its interest in the arrangement. Under joint ventures, a joint venturer recognizes an investment and accounts for that investment using the equity method. These enactments referred above do not have an effect on the Company’s consolidated financial statements and disclosures.

- 2 -

K-IFRS 1112, Disclosures of Interests in Other Entities (Issued)

K-IFRS 1112 improves disclosures of reporting entities that have an interest in a subsidiary, a joint arrangement, an associate or unconsolidated structured entity. The standard requires an entity to disclose the nature of, and risks associated with, its interests in other entities and the effects of those interests on its financial position, financial performance and cash flows. The Company discloses the information on interests in subsidiaries (see Note 4).

K-IFRS 1113, Fair Value Measurements (Issued)

K-IFRS 1113 establishes a single source of guidance for fair value measurements and disclosures about fair value measurements. The standard defines fair value, establishes a framework for measuring fair value and requires disclosures about fair value measurements. The standard defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (i.e., an exit price). When measuring fair value, an entity uses the assumptions that market participants would use when pricing the asset or liability. The standard explains that a fair value measurement requires an entity to determine the particular asset or liability being measured, the market in which an orderly transaction would take place for the asset and liability and the appropriate valuation techniques to use when measuring fair value. Also, the standard requires wider disclosures about fair value measurements. These enactments referred above do not have a significant effect on the Company’s consolidated financial statements and disclosures.

The effects on consolidated statement of financial position and consolidated statement of comprehensive income by accounting standards and interpretations that were newly applied for the nine months ended September 30, 2013, and changes in the Company’s accounting policies are as follows:

(Consolidated statement of financial position)

As of December 31, 2012 Before changes After changes

Attributable to owners of the Company Share capital and capital surplus 860,030,873,955 860,030,873,955Retained earnings 1,339,725,219,219 1,348,744,482,014

Reserve (7,485,485,483) (16,504,748,278)Non-controlling interests 19,820,000 19,820,000

2,192,290,427,691 2,192,290,427,691

(Consolidated statement of comprehensive income)

For the nine months ended September 30, 2012 Before changes After changes

Operating income 193,904,744,926 196,157,107,887 Non-operating income 1,675,193,242 1,675,193,242 Non-operating expenses 1,108,877,122 1,108,877,122 Income before income tax expenses 194,471,061,046 196,723,424,007 Income tax expenses 32,106,262,791 32,651,334,628 Net income for the period 162,364,798,255 164,072,089,379 Other comprehensive income 539,512,646 (1,167,778,478) Items not reclassified subsequently to

profit or loss - (1,707,291,124)

Remeasurements of the net defined benefit liability -

(2,252,362,961)

Income tax effect - 545,071,837 Items reclassified subsequently to

profit or loss 539,512,646 539,512,646

Cash flow hedging gains or losses 726,701,495 726,701,495 Income tax effect (187,188,849) (187,188,849)Total comprehensive income for the

period 162,904,310,901 162,904,310,901

- 3 -

2) The Company has not applied or adopted earlier the following new and revised K-IFRSs that have been issued, but are not yet effective:

K-IFRS 1032 (as revised in 2012), Financial Instruments: Presentation

The amendments to K-IFRS 1032 clarify existing application issue relating to the offset of financial assets and financial liabilities requirements. The group’s right of setoff must not be contingent upon any future events but enforceable anytime during the contract period in all of the circumstances — in the event of default, insolvency or bankruptcy of the entity or the counterparties, as well as in the ordinary course of business. The amendments to K-IFRS 1032 are effective for annual periods beginning on or after January 1, 2014. The Company does not anticipate that these amendments referred above will have a significant effect on the Company’s consolidated financial statements and disclosures.

3. CRITICAL ACCOUNTING JUDGMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY:

In the application of the Company’s accounting policies, management is required to make judgments, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates.

The application of the Company’s accounting policies and the judgments by management on sources of estimation uncertainty are the same as those of the consolidated financial statements as of December 31, 2012.

4. SUBSIDIARY:

Details of the Parent’s subsidiaries as of September 30, 2013, and December 31, 2012, are as follows:

Place of incorporation and

operation

Voting share (%)

Companies Major operation September 30, 2013 December 31, 2012

End of reporting period

PRIVIA 2nd SPC Asset securitization Korea 0.9 0.9 DecemberPRIVIA 3rd SPC Asset securitization Korea 0.9 0.9 January

The subsidiaries were established for the Parent’s business activity. The Parent has a power over the subsidiaries due to the fact that the Parent involves in the objectives and design of the subsidiaries and exposes to risks and rewards of them. Also, all the decision-making processes of the subsidiaries are operated on autopilot by provisions and articles of association. The Parent is considered to have an ability to use power because the Parent has a control over the changes of provisions and articles of association. By those reasons, the Parent includes the special-purpose entities under consolidation.

Meanwhile, in case that default occurs by the subsidiaries related to derivative contracts hedging risks arising from debentures issued for asset securitization, counterparties of the derivative contracts can claim for reimbursement to the Parent.

- 4 -

5. RESTRICTED FINANCIAL ASSETS:

Restricted financial assets as of September 30, 2013, and December 30, 2012, are as follows (Unit: Won in millions):

Type Entity September 30, 2013 December 31, 2012 Restriction Deposits

KB and others 19 16Guarantee deposits

for overdraft Shinhan Bank

and others 33,000 33,000 Secured deposits Mirae Asset Securities 13 13

Social enterprise fund

Other financial assets

Korea Asset Management Corporation 9,246 9,246 Escrow account

42,278 42,275

6. CARD ASSETS:

Card assets by customer as of September 30, 2013, and December 31, 2012, are as follows (Unit: Won in millions):

September 30, 2013 December 31, 2012 Households Corporates Total Households Corporates Total

CARD ASSETS : Card receivables (*) 5,424,222 556,235 5,980,457 6,116,731 479,630 6,596,361 Cash advances 845,787 - 845,787 940,019 - 940,019 Card loans (*) 2,594,256 - 2,594,256 2,351,470 - 2,351,470

Total 8,864,265 556,235 9,420,500 9,408,220 479,630 9,887,850 Allowance for doubtful accounts (185,670) (5,152) (190,822) (176,050) (4,762) (180,812)

Book value 8,678,595 551,083 9,229,678 9,232,170 474,868 9,707,038 Composition rate 94.03% 5.97% 100.00% 95.11% 4.89% 100.00%

(*) Adjusted for deferred origination fees and present value discounts.

- 5 -

7. ALLOWANCE FOR DOUBTFUL ACCOUNTS:

Changes in the allowance for doubtful accounts for the nine months ended September 30, 2013 and 2012, are as follows (Unit: Won in millions):

Nine months ended September 30, 2013 Card

receivables Cash

advances Card loans Loans Other assets Total Balance at January 1, 2013 65,652 33,786 81,374 - 2,267 183,079

Bad debt expenses (1,132) (394) (450) - - (1,976)Bad debt recovered 535 730 226 - - 1,491Disposition and repurchase (26,768) (17,526) (26,045) - - (70,339)

Provision of (reversal of) allowance for doubtful accounts 25,050 14,536 41,248 - 677 81,511

Balance at September 30, 2013 63,337 31,132 96,353 - 2,944 193,766

Nine months ended September 30, 2012 Card

receivables Cash

advances Card loans Loans Other assets Total Balance at January 1, 2012 68,773 37,910 67,071 30 2,306 176,090

Bad debt expenses (1,382) (362) (237) - - (1,981)Bad debt recovered 575 845 261 - - 1,681Disposition and repurchase (18,018) (12,084) (13,105) - - (43,207)

Provision of (reversal of) allowance for doubtful accounts 12,032 7,129 23,731 - 103 42,995

Balance at September 30, 2012 61,980 33,438 77,721 30 2,409 175,578

- 6 -

8. PROPERTY AND EQUIPMENT:

The changes in book value of property and equipment for the nine months ended September 30, 2013 and 2012, are as follows (Unit: Won in millions):

Nine months ended September 30, 2013 Beginning balance Acquisition Reclassification(*) Disposal Depreciation

Ending balance

Land 122,012 - - - - 122,012Buildings 60,331 6,779 7,062 - (1,330) 72,842Vehicles 163 - - (62) (58) 43Fixtures and equipment 56,690 12,238 1,594 (813) (18,818) 50,891Finance lease assets 1,389 - - - (834) 555Construction in

progress 23,798 13,147 (8,665) - - 28,280Total 264,383 32,164 (9) (875) (21,040) 274,623

(*) 132 million of construction in progress is reclassified to advanced payments and 123 million of fixtures and equipment is reclassified from construction in progress in intangible assets (see Note 9).

Nine months ended September 30, 2012 Beginning balance Acquisition Reclassification(*) Disposal Depreciation

Ending balance

Land 83,995 34,166 3,851 - - 122,012Buildings 42,187 22,819 (3,505) - (1,108) 60,393Vehicles 270 76 - - (108) 238Fixtures and equipment 57,974 17,396 125 (121) (18,011) 57,363Finance lease assets 2,500 - - - (833) 1,667Construction in

progress 472 11,032 5,019 - - 16,523Total 187,398 85,489 5,490 (121) (20,060) 258,196

(*) 5,490 million of construction in progress is reclassified from advanced payments.

- 7 -

9. INTANGIBLE ASSETS:

The changes in intangible assets for the nine months ended September 30, 2013 and 2012, are as follows (Unit: Won in millions):

(*) 123 million of construction in progress is reclassified to fixtures and equipment (see Note 8).

(*) 803 million of construction in progress is reclassified to advanced payments.

10. ASSETS PLEDGED AS COLLATERAL:

Land and buildings amounting to 943 million are provided as collateral for leasehold deposit received as of September 30, 2013.

11. BORROWINGS:

Borrowings as of September 30, 2013, and December 31, 2012, are as follows (Unit: Won in millions):

Annual interest rates (%) Maturity Borrowed from September 30, 2013 December 31, 2012

Commercial Papers

Shinhan bank and two others 2.63 2013.10.04 60,000 350,000

Borrowings Hana bank and seven others 3.56–5.55 2013.12.10–

2016.04.01 225,000 137,500 285,000 487,500

Nine months ended September 30, 2013 Beginning balance Acquisition

Reclassification(*) Disposal Amortization

Ending balance

Development cost 34,747 5,294 4,261 - (9,166) 35,136Industrialproperty rights 76 - - - (30) 46

Others 7,829 30 - - (2,547) 5,312Construction in progress 11,041 43,613 (4,384) - - 50,270

Membership 20,971 96 - - - 21,067Total 74,664 49,033 (123) - (11,743) 111,831

Nine months ended September 30, 2012 Beginning balance Acquisition

Reclassification (*) Disposal Amortization

Ending balance

Development cost 36,656 3,538 873 - (7,790) 33,277Industrialproperty rights 116 - - - (30) 86

Others 11,369 - - - (2,664) 8,705Construction in progress 2,101 3,734 (1,676) - - 4,159

Membership 22,734 - - (1,250) - 21,484Total 72,976 7,272 (803) (1,250) (10,484) 67,711

- 8 -

12. BONDS PAYABLE:

Bonds payable issued by the Company and outstanding as of September 30, 2013, and December 31, 2012, are as follows (Unit: Won in millions):

Annual interest rates (%) Maturity

September 30, 2013 December 31, 2012 Par value Issue price Par value Issue price

Short-term debentures 2.91 2013.11.06 40,000 40,000 170,000 170,000

Current portion of long-term debentures

2.91–6.73, 1M USD

LIBOR+0.724

2013.10.05–2014.09.30

1,828,940 1,828,940 1,707,580 1,707,580Long-term

debentures 2.77–6.75,

1M USD LIBOR+1.5 2014.10.06–2019.07.31 4,542,240 4,542,240 4,665,067 4,665,067

Discounts on bonds (7,277) (9,471)Bonds payable, net 6,403,903 6,533,176

The outstanding bonds payable are non-guaranteed corporate bonds, with their principals to be redeemed by installment or at maturity. Bond issuance costs are recorded as discounts on bonds payable and amortized using the effective interest rate method.

13. FINANCE LEASE LIABILITIES:

(1) Lease contract

The Company has a three-year finance lease for electronic equipment. The Company has a bargain purchase option at expiration date of lease contract. The lessor has the legal ownership of the finance lease, whose book value amounts to 555 million and 1,389 million as of September 30, 2013, and December 31, 2012, respectively, and which are set as collateral for finance lease obligation.

(2) Finance lease liabilities as of September 30, 2013, and December 31, 2012, are as follows (Unit: Won in millions):

September 30, 2013 December 31, 2012 Minimum lease payments

Present value of minimum lease payments

Minimum lease payments

Present value of minimum lease payments

Less than 1 year 601 592 1,202 1,154 1–5 years - - 301 298 Present value discounts (9) (51)

Present value 592 1,452

- 9 -

14. RETIREMENT BENEFIT PLAN:

(1) Defined Contribution Plan

The expense recognized in the condensed consolidation statements of comprehensive income related to postemployment benefit plan under the defined contribution plan for the nine months ended September 30, 2013 and 2012, are as follows (Unit: Won in millions):

September 30, 2013 September 30, 2012 Defined contribution plan 16 6

(2) Defined Benefit Plan

1) General

The Company operates a defined benefit plan that is linked to final payment. Plan assets mainly consist of deposits and expose to risk of fall in interest rate.

2) Net defined benefit obligation

Changes in net defined benefit obligation for the nine months ended September 30, 2013 and 2012, are as follows (Unit: Won in millions):

For the nine months ended September 30, 2013 The present

value of the defined benefit

obligation Plan assets National

pension fund Net defined

benefit obligationBeginning balance 44,474 (33,745) (34) 10,695 Contributions from

the employer - - - - Current service cost 7,165 - - 7,165 Interest expense

(income) 1,113 (812) - 301 The return on plan

assets, excluding amounts included in interest income above - (25) - (25)

Actuarial gains and losses arising from changes in demographic assumptions - - - -

Actuarial gains and losses arising from changes in financial assumptions (363) - - (363)

Transfer of employees between the Company and its related companies 328 (472) - (144)

Benefits paid (2,145) 2,235 2 92 Ending balance 50,572 (32,819) (32) 17,721

- 10 -

For the nine months ended September 30, 2012 The present

value of the defined benefit

obligation Plan assets National

pension fund Net defined

benefit obligationBeginning balance 37,007 (19,195) (37) 17,775Contributions from the

employer - (4,500) - (4,500)

Current service cost 6,464 - - 6,464Interest expense

(income) 1,117 (550) - 567The return on plan

assets, excluding amounts included in interest income above -

(98) -

(98)

Actuarial gains and losses arising from changes in demographic assumptions - - - -

Actuarial gains and losses arising from changes in financial assumptions 2,350 - - 2,350

Transfer of employees between the Company and its related companies (1,102) 603 - (499)

Benefits paid (2,371) 973 3 (1,395)Ending balance 43,465 (22,767) (34) 20,664

15. UNEARNED REVENUE:

Details of unearned revenue as of September 30, 2013, and December 31, 2012, are as follows (Unit: Won in millions):

September 30, 2013 December 31, 2012 Customer loyalty program 325,112 320,328 Membership fee 76,526 77,450 Others 110 52

401,748 397,830

16. PROVISION:

Changes in provisions for the nine months ended September 30, 2013 and 2012, are as follows (Unit: Won in millions):

September 30, 2013 Unused

commitment Point Others Total Beginning 46,386 15,509 13,792 75,687Increase 1,649 3,381 1,888 6,918Ending 48,035 18,890 15,680 82,605

- 11 -

September 30, 2012 Unused

commitment Point Others Total Beginning 47,167 11,240 21,826 80,233Increase (decrease) 4,196 2,353 (8,328) (1,779)Ending 51,363 13,593 13,498 78,454

The above amounts as of September 30, 2013, include provision for deposits in escrow account of 4,944 million, and provision for pending litigations of 10,736 million, in which provision includes

deposits in escrow account of 4,467 million (see Note 24(3)).

17. DERIVATIVES AND HEDGE ACCOUNTING:

(1) There are no derivative instruments held for trading as of September 30, 2013, and December 31, 2012.

(2) Cash flow hedge

The Company removes the volatility risk of future cash flow of a hedged item, such as borrowings or bonds, caused by changes in market interest rates or in foreign currency rates, by using derivative instruments, such as an interest rate swap or currency swap. The Company’s policies and strategies of cash flow hedge are the same as those as of December 31, 2012.

1) Fair value of cash flow hedge as of September 30, 2013, and December 31, 2012, are as follows (Unit: Won in millions):

September 30, 2013 December 31, 2012 Contract

Amount Asset Liabilities Contract

Amount Asset Liabilities Interest rate

swap 1,173,000 2,513 3,585 778,000 901 3,925Cross-currency

swap 860,480 - 39,256 873,092 - 49,630Total 2,033,480 2,513 42,841 1,651,092 901 53,555

For transactions between local currency and foreign currencies, the unsettled contract amount of transaction is translated applying the basic foreign exchange rate at the end of reporting period to the contract amount in foreign currencies. For transaction between foreign currencies and other foreign currencies, the unsettled contract amount is the amounts translated applying the basic foreign exchange rate at the end of reporting period to the contract amount in foreign currencies purchased.

2) Expected cash flow for cash flow hedge

Maximum potential amounts of future payments for cash flow hedges by the period when the cash flows are expected to occur and when they are expected to affect income (loss) for the period are as follows (Unit: Won in millions):

September 30, 2013 December 31, 2012 Less than 1 month (1,981) (2,079) 1–3 months (9,885) (3,881) 3–12 months (21,080) (25,813) 1–5 years (22,614) (47,039)

(55,560) (78,812)

- 12 -

18. SHARE CAPITAL:

There was no change in share capital and capital surplus for the nine months ended September 30, 2013. Meanwhile, Hyundai motor company (“Parent company”) acquired 8,729,750 shares of Hyundai Card Co., Ltd. from Hyundai Steel Co., Ltd., and the ownership of Parent company increased by 5.44%.

19. RETAINED EARNINGS:

(1) Details of retained earnings as of September 30, 2013, and December 31, 2012, are as follows (Unit: Won in millions):

September 30, 2013 December 31, 2012 Legal reserve (*) 20,143 20,143 Reserve for bad loans (see Note 21) 611,622 439,031 Unappropriated retained earnings 844,183 889,571

1,475,948 1,348,745

(*) Korean Commercial Code requires a company to appropriate at least 10% of dividends paid as legal reserve for each fiscal period, until the reserve equals 50% of paid-in capital. This reserve is not available for payment of cash dividends; however, it can be used to reduce deficit or be transferred to capital.

(2) Changes in retained earnings for the nine months ended September 30, 2013 and 2012, are as follows (Unit: Won in millions):

Nine months ended September 30, 2013 2012

Beginning 1,348,745 1,154,446Net income attributable to the owners of the Company 127,203 164,072Ending 1,475,948 1,318,518

20. RESERVES:

Changes in reserves for the nine months ended September 30, 2013 and 2012, are as follows (Unit: Won in millions):


Beginning (16,504) (17,813) Cash flow hedging gains 6,035 928

Interest rate swap 1,419 (3,797) Currency swap 4,616 4,725

Amount reclassified to net income related to cash flow hedge 569 (202) Interest rate swap 531 - Currency swap 38 (202)

Tax effect related to cash flow hedging gains (losses) (1,581) (187) Remeasurements of the net defined benefit liability 388 (2,252) Tax effect related to remeasurements of the net defined

benefit liability (94) 545 Ending (11,187) (18,981)

- 13 -

21. RESERVE FOR BAD LOANS:

Reserve for bad loans is calculated and disclosed according to Article 11, Supervisory Regulation of Specialized Credit Financial Business.

(1) Details of reserve for bad loans as of September 30, 2013, and December 31, 2012, are as follows (Unit: Won in millions):

September 30, 2013 December 31, 2012 Accumulated reserve for bad loans 611,622 439,031 Expected (reversal of) reserve for bad loans (9,063) 172,591 Reserve for bad loans 602,559 611,622

(2) The provision (reversal of) reserve for bad loans and adjusted income after (reversal of) reserve for bad loans for the nine months ended September 30, 2013 and 2012, are as follows (Unit: Won in millions):

Nine months ended September 30, 2013 2012 Net income attributable to the owners of the Company 127,203 164,072Expected (reversal of) reserve for bad loans 9,063 20,701Adjusted income after reserve for bad loans 136,266 143,371

- 14 -

22. GENERAL AND ADMINISTRATIVE EXPENSES:

Details of general and administrative expenses for the three months and nine months ended September 30, 2013 and 2012, are as follows (Unit: Won in millions):

PAYROLL 2013 2012 Three months

ended September 30

Nine months ended September 30

Three months ended September 30


Salaries wage 29,317 86,565 30,380 72,174Pension expenses 2,520 7,482 2,284 7,037Employee benefits 6,717 21,224 6,565 21,132

38,554 115,271 39,229 100,343

OTHER EXPENSES 2013 2012 Three months

ended September 30


Three months ended September 30


Travel expenses 539 1,760 571 1,850Communication expenses 6,911 18,069 4,882 15,871Post expense 3,400 10,543 3,018 9,489Rental expenses 6,302 18,928 7,118 20,704Taxes due 4,507 17,120 4,087 11,789Repair and maintenance expenses 135 444 190 486Insurance premiums 47 172 24 212Entertainment expenses 476 820 171 613Advertising expenses 22,118 40,820 8,902 28,921Supply expenses 618 1,856 465 1,621Vehicle maintenance expenses 2 12 3 14Periodical expenses 262 329 411 699Publication expenses 2,524 5,773 2,627 6,142Training expenses 1,131 2,794 966 3,237Electronic data processing

expense 12,017 32,975 12,438 28,809Expense for temporary staff 8,808 25,542 8,612 26,818Professional expenses 40,757 110,010 41,272 118,358Delivery expenses 580 2,131 684 2,781Commission expenses 5,951 18,722 6,006 17,945Business activities expenses 938 2,595 1,125 3,166Depreciation expenses 7,114 21,040 6,782 20,060Amortization expenses 4,069 11,743 3,564 10,484Event expenses 1,759 2,855 1,958 3,751Conference expenses 88 411 108 305Building administrative expense 1,530 4,069 1,584 2,742

132,583 351,533 117,568 336,867

- 15 -

23. INCOME TAX FROM CONTINUED OPERATION:

(1) Income tax expense for the nine months ended September 30, 2013 and 2012, are summarized as follows (Unit: Won in millions):

Nine months ended September 30, 2013 2012 Income tax currently payable 53,398 55,048Changes in deferred tax assets by temporary differences (*) (6,912) (22,755)

Total 46,486 32,293Changes in income tax expense reflected directly in shareholders’

equity (1,675) 358Income tax expense 44,811 32,651(*) Ending net deferred tax assets due to temporary differences 142,579 135,158

Beginning net deferred tax assets due to temporary differences 135,667 112,403Changes in net deferred tax assets due to temporary differences (6,912) (22,755)

(2) Income tax expenses reflected directly in shareholders’ equity for the nine months ended September 30, 2013, are as follows (Unit: Won in millions):

January 1, 2013 Decrease September 30, 2013 Tax effect related to the cash

flow hedging reserve gains and losses 2,367 (1,581) 786

Tax effect related to remeasurements of the net defined benefit liability 2,880 (94) 2,786

5,247 (1,675) 3,572

(3) A reconciliation between income before income tax and income tax expense for the nine months ended September 30, 2013 and 2012, are as follows (Unit: Won in millions):


Income before income tax 172,015 196,723Income tax payable by the statutory income tax rates 41,166 47,145Tax reconciliations:

Non-deductible expenses 372 31The amount of deductible temporary differences for which

no deferred tax asset is recognized - (11,384)True-up adjustment (*) (123) (3,463)Others (269) (2,155) (20) (16,971)

Any adjustments recognized in the period due to current tax of prior period 3,665 2,477

Income tax from continued operation 44,811 32,651

(*) True-up adjustment due to difference in the amount disclosed in prior year’s audit report and the actual tax return amount.

- 16 -

24. CONTINGENCIES AND COMMITMENTS:

Contingencies and commitments are the same as those of the consolidated financial statements as of December 31, 2012, except for the following:

(1) Credit line agreement

a. The following are credit line agreements as of September 30, 2013, and December 31, 2012 (Unit: Won in millions):

Type Financial instruments September 30, 2013 December 31, 2012 Overdraft limit - - 50,000Intraday overdraft limit Shinhan Bank and

five others 360,000 280,000

b. Credit facility agreement

The Company entered into a credit facility agreement with GE Capital European Funding & CO (“GECC”) on February 15, 2013. The credit facility limit that can be used by the Company is Euro equivalent of USD100 million. In terms of duration, the agreement is renewable for one year from January 2014 until January 9, 2015, the maturity of the credit facility agreement.

With regard to the credit facility agreement, the Company, GECC, Hyundai Motor Company (“HMC”) and Kia Motors Corp. (“KMC”) entered into a support agreement with same contract period as of the credit facility agreement. Under the support agreement, in case that the Company uses the credit facility line, each of HMC and KMC shall bear an amount equal to 41% and 15% of losses, respectively, which are any amount of obligations that have not been paid to GECC by the Company or otherwise received or collected by GECC from the Company.

c. Revolving credit facility agreement

The Company has a revolving credit facility agreement with many financial institutions for credit line as of September 30, 2013, as follows (Unit: Won in millions):

Financial instruments Credit line Term Kookmin Bank 30,000 2012-11-07–2013-10-22 Kookmin Bank 130,000 2013-02-28–2014-02-28 Kookmin Bank 30,000 2013-05-29–2014-05-28 NH Bank 100,000 2013-03-29–2014-03-29 Citibank, Seoul 50,000 2012-12-24–2013-12-24 Shinhan Bank 50,000 2013-04-16–2014-04-15 Shinhan Bank 50,000 2013-05-31–2014-05-31 Shinhan Bank 50,000 2013-06-28–2014-06-28 Suhyup Bank 20,000 2013-03-06–2014-03-06 Korea Development Bank 40,000 2013-04-19–2014-04-19 Hana Bank 100,000 2013-02-01–2014-02-01 Standard Chartered Bank 30,000 2013-04-19–2014-04-19 Jeonbuk Bank 30,000 2013-05-28–2014-05-28 Bank of Nova Scotia 50,000 2013-07-18–2014-07-18

(2) Pending lawsuits

As of September 30, 2013, the Company is involved in 36 cases ( 132,351 millions) as a defendant and 109 cases ( 12,161 millions) as a plaintiff in the pending lawsuits. The management of the Company does not anticipate that these pending lawsuits referred above will have a significant effect on the Company’s consolidated financial statements.

- 17 -

(3) Deposit for loss reimbursement

As of September 30, 2013, the Company has deposits of 4,944 million and 4,302 million of proceeds and interests, respectively, from the sale of Daewoo Engineering & Construction Co., Ltd.’s shares, in an escrow account and records 4,944 million of provision for proceeds and 4,467 million of provision for interests from the litigation relating to the sale of Daewoo Engineering & Construction Co., Ltd.’s shares (see Note 16).

(4) Guarantee

The Company has a performance guarantee from the Seoul Guarantee Insurance Co., Ltd., amounting to 392 million in connection with deferred transportation payment card and others.

(5) Contract of sale of receivables

The Company entered into a contract with Hyundai Capital Services, Inc., relating to its sale of receivables on January 24, 2006. In accordance with the contract, the Company sells the receivables that are 60 days or more past due or written off to Hyundai Capital Services, Inc. Such sale occurs five times a month on designated cutoff dates at the amount calculated using a predetermined price pursuant to the contract.

25. TRANSFERS OF FINANCIAL ASSETS:

The Parent transferred its card assets to special-purpose companies (“SPCs”) for asset securitization and SPCs issued Asset-Backed Securities (“ABSs”). The ABSs are collateralized by card assets as underlying assets. All of the transferred financial assets do not qualify for derecognition under K-IFRS 1039 because the Parent has retained substantially all the risks and rewards of ownership of the transferred asset. Therefore, the Parent continues to recognize the transferred financial assets in the separate financial statements. The details of ABSs and underlying assets as of September 30, 2013, and December 31, 2012, are as follows (Unit: Won in millions):

As of September 30, 2013

Maturity

Carrying amount Fair value Underlying

asset Senior

tranche Underlying

asset Senior

tranche Net

position PRIVIA 2nd SPC 2014.04.21 1,230,242 430,240 1,256,281 430,206 826,075PRIVIA 3rd SPC 2015.07.20 1,208,971 430,240 1,237,238 429,738 807,500Discounts on bonds - (2,075) - - -

2,439,213 858,405 2,493,519 859,944 1,633,575

As of December 31, 2012

Maturity

Carrying amount Fair value Underlying

asset Senior

tranche Underlying

asset Senior

tranche Net

position PRIVIA 2nd SPC 2014.04.21 1,055,990 428,440 1,074,693 428,160 646,533PRIVIA 3rd SPC 2015.07.20 1,038,539 428,440 1,058,068 427,951 630,117Discounts on bonds - (3,589) - - -

2,094,529 853,291 2,132,761 856,111 1,276,650

- 18 -

26. TRANSACTION WITH RELATED PARTIES:

(1) Status of related parties

Related parties consist of entities related to the Company, postemployment benefits, a key management personnel and a close member of that person’s family, an entity controlled or jointly controlled and an entity influenced significantly.

Details of related parties as of September 30, 2013, are as follows:

Companies Parent company Hyundai Motor Company Other related parties GE Capital Int'l Holdings, Green Air, Kia Motor Company, Kia Tigers, Busan

Finance Center AMC, Samwoo, WIA Magna Powertrain, Eukor Car Carriers, Innocean, Iljin Bearing, Jongro Academy, Chunbuk Hyundai motors FC, Jongro Eclass, Hyundai Kefico, Korea Credit Bureau, Hankook Economy News, Haevichi Country Club, Haevichi Hotel & Resort, Hyundai construction, Hyundai construction human resource development center, Hyundai Glovis, Hyundai Dymos, Hyundai City Corporation, Hyundai Life Insurance, Hyundai Rotem, Hyundai Materials, Hyundai Metia, Hyundai Movis, Hyundai BNG Steel, Hyundai farm land & development, Hyundai Steel Company, Hyundai C&I, Hyundai IHL, Hyundai energy, Hyundai engineering, Hyundai NGV, Hyundai MSEAT, Hyundai MnSoft, Hyundai AMCO, Hyundai Auto Ever Systems, Hyundai Wistco, Hyundai Wia, Hyundai Engineering & Steel Industries, Hyundai Architects & Engineers Associates, Hyundai Motors Electronic Industry, Hyundai Capital, Hyundai Commercial, Hyundai Powertech, Hyundai Partecs, Hyundai Hysco, HK Saving Bank and HMC Investment Securities

(2) Transaction with related companies for the nine months ended September 30, 2013 and 2012, are as follows (Unit: Won in millions):

Nine months ended September 30, 2013 Nine months ended September 30, 2012 Parent company

Other related parties Total

Parent company

Other related parties Total

Revenues Card revenue 97,670 59,277 156,947 78,095 41,351 119,446Rental revenue - 616 616 - 196 196Others - 22,241 22,241 - 28,946 28,946

97,670 82,134 179,804 78,095 70,493 148,588Expense Card expense - 30,688 30,688 15 209 224General and

administrative expense 152 37,474 37,626 305 27,189 27,494

Others 81 38,916 38,997 69 41,820 41,889 233 107,078 107,311 389 69,218 69,607Others Purchase of

property and equipment

- 20,249 20,249 76 13,675 13,751

Purchase of intangible assets - 27,060 27,060 - 2,400 2,400

Disposal of assets - 280,151 280,151 - 268,773 268,773Total - 327,460 327,460 76 284,848 284,924

- 19 -

(3) Outstanding receivables, payables and guarantee from transactions with related parties as of September 30, 2013, and December 31, 2012, are as follows (Unit: Won in millions):

September 30, 2013 December 31, 2012

Parent company

Other related

parties Total Parent

company

Other related

parties Total Receivables Card asset 72,856 185,738 258,594 64,580 147,800 212,380Others 2,128 3,375 5,503 151 21,626 21,777Allowance for doubtful accounts (801) (2,043) (2,844) (710) (1,626) (2,336)

Total 74,183 187,070 261,253 64,021 167,800 231,821Payables Accounts payable 59,237 29,672 88,909 87,354 58,060 145,414Other 23 (4,239) (4,216) 7 (5,489) (5,482)

Total 59,260 25,433 84,693 87,361 52,571 139,932

The Company is being provided payment guarantees to GECC through credit facility agreement by HMC and KMC (see Note 24(1)).

(4) Granting of credit with related parties

Granting of credit with related parties as of September 30, 2013, is as follows (Unit: Won in millions):

Grantor Grantee Method Credit limit Period Parent Hyundai Capital

Services, Inc. Call loan 300,000 2012.11.1–2013.10.31Hyundai Capital

Services, Inc. Parent Call loan 300,000 2012.11.1–2013.10.31

Call loan is granted only in case that any grantee demands credit line and there is residual fund, and the credit line currently is not being used.

(5) Compensation for key management

1) Compensation cost for key management for the nine months ended September 30, 2013, consists of short-term employee benefit and retirement benefit.

2) Compensation for key management for the nine months ended September 30, 2013 and 2012, consists of the following (Unit: Won in millions):

For the nine months ended September 30 2013 2012 Short-term employee benefit 5,359 4,391 Retirement benefit 1,507 1,806

Total 6,866 6,197

3) Key management includes directors (including non-executive directors) and members of the audit committee with significant authority and responsibility over the Company’s plan, direction and control.

- 20 -

27. FINANCIAL RISK MANAGEMENT:

(1) General

The Company is exposed to various financial risks, such as credit risk, liquidity risk and market risk associated with financial instruments. The level of exposure to such risks, objectives of the Company and its risk management policy and procedures are outlined below. The Company’s risk management strategy is the same as that of 2012.

(2) Credit risk

1) Level of exposure to credit risk

The Company’s maximum exposure to credit risk as of September 30, 2013, and December 31, 2012, is summarized as follows (Unit: Won in millions): September 30, 2013 December 31, 2012 Deposit 948,918 824,576 Card asset (*1) 9,420,500 9,887,850 Other assets (*1, 2) 173,680 184,554 Unused commitment 32,636,871 32,974,864

Total 43,179,969 43,871,844

(*1) Card asset is stated at book value before allowance for doubtful accounts. (*2) Other assets consist of accounts payable, unearned income and others.

2) Analysis of credit soundness of financial assets

Credit soundness of card assets neither past due nor impaired as of September 30, 2013, and December 31, 2012, is summarized as follows (Unit: Won in millions):

September 30, 2013 December 31, 2012 Book value

before allowance

for doubtful accounts

Allowance for

doubtful accounts

Book value

Book value before

allowance for doubtful accounts

Allowance for

doubtful accounts

Book value

Retail Card receivables and cash advances 6,123,495 (78,767) 6,044,728 6,914,575 (83,591) 6,830,984

Card loans 2,446,785 (60,514) 2,386,271 2,238,022 (54,810) 2,183,212Corporate

Card receivables 522,641 (2,653) 519,988 450,389 (1,905) 448,484

Total 9,092,921 (141,934) 8,950,987 9,602,986 (140,306) 9,462,680

- 21 -

Credit quality of card assets past due but not impaired as of September 30, 2013, and December 31, 2012, is summarized as follows (Unit: Won in millions):

September 30, 2013 Less than

1 month 1–2 months 2–3 monthsMore than 3 months Total

Retail 197,412 27,619 - - 225,031Corporate 9,905 6,840 - - 16,745 207,317 34,459 - - 241,776Card assets

Card receivables 104,766 17,180 - - 121,946Cash advances 27,424 5,320 - - 32,744Card loans 75,127 11,959 - - 87,086

207,317 34,459 - - 241,776 Allowance for doubtful

accounts (7,937) (2,627) - - (10,564)Book value 199,380 31,832 - - 231,212

December 31, 2012 Less than

1 month 1–2 months 2–3 monthsMore than 3 months Total

Retail 173,994 29,994 - - 203,988Corporate 13,485 2,653 - - 16,138 187,479 32,647 - - 220,126Card assets

Card receivables 110,097 16,497 - - 126,594Cash advances 18,102 4,378 - - 22,480Card loans 59,280 11,772 - - 71,052

187,479 32,647 - - 220,126 Allowance for doubtful

accounts (7,051) (2,879) - - (9,930)Book value 180,428 29,768 - - 210,196

Impaired card assets as of September 30, 2013, and December 31, 2012, are summarized as follows (Unit: Won in millions):

September 30, 2013 December 31, 2012 Card assets 85,803 64,738 Allowance for doubtful accounts (38,324) (30,576)

Total 47,479 34,162

3) Concentrations of credit risk

Concentrations of credit risk by industry of corporate loans as of September 30, 2013, and December 31, 2012, are summarized as follows (Unit: Won in millions):

September 30, 2013 December 31, 2012 Book value

before allowance

for doubtful accounts Ratio

Allowance for

doubtful accounts

Book value

Book value before

allowance for doubtful accounts Ratio

Allowance for

doubtful accounts

Book value

Financing 128,737 23.14% (284) 128,453 121,927 25.42% (219) 121,708Manufacturing 191,727 34.47% (1,639) 190,088 161,781 33.73% (863) 160,918Service 159,511 28.68% (1,804) 157,707 149,343 31.14% (1,997) 147,346Public 69 0.01% - 69 145 0.03% - 145Others 76,191 13.70% (1,425) 74,766 46,434 9.68% (1,683) 44,751 Total 556,235 100.00% (5,152) 551,083 479,630 100.00% (4,762) 474,868

- 22 -

(3) Liquidity risk

The Company’s financial liabilities by residual contractual maturity as of September 30, 2013, and December 31, 2012, are classified as follows (Unit: Won in millions):

September 30, 2013 Immediate

payment Less than

1 year 1–5 years More than

5 years Total Borrowings - 220,858 73,178 - 294,036Bonds payable - 2,084,120 4,792,147 96,579 6,972,846Derivatives liabilities - 33,296 24,976 - 58,272Other liabilities 58,611 1,292,949 779 - 1,352,339

Total 58,611 3,631,223 4,891,080 96,579 8,677,493

These amounts include all cash inflows, such as interests without discount and other liabilities are composed of accounts payable, accrued expense, deposit received, finance lease liabilities and guarantee deposit received.

December 31, 2012 Immediate

payment Less than

1 year 1–5 years More than

5 years Total Borrowings - 429,738 64,417 - 494,155Bonds payable - 2,108,561 4,801,662 230,914 7,141,137Derivatives liabilities - 32,147 47,682 - 79,829Other liabilities 42,139 1,421,832 192 - 1,464,163

Total 42,139 3,992,278 4,913,953 230,914 9,179,284

These amounts include all cash inflows, such as interests without discount and other liabilities are composed of accounts payable, accrued expense, deposit received, finance lease liabilities and guarantee deposit received.

(4) Market risk

The result of interest rate Value at Risk (VaR) calculated under normal distribution of interest rate risk as of September 30, 2013, and December 31, 2012, is as follows (Unit: Won in millions):

September 30, 2013 December 31, 2012 Interest rate VaR 6,502 1,197

(5) Capital management

The Parent (specialized credit finance company) must maintain adjusted capital adequacy ratio in accordance with Specialized Credit financial business and subregulations, and the ratio for the credit card company must be more than 8%.

This ratio is calculated dividing adjusted capital by adjusted total assets, and all factors are based on consolidated financial statements.

The Parent maintains an adjusted capital adequacy ratio of more than 8%.

- 23 -

28. FINANCIAL ASSETS AND FINANCIAL LIABILITIES:

(1) Fair value of financial assets and liabilities

The fair value of financial assets and financial liabilities as of September 30, 2013, and December 31, 2012, is summarized as follows (Unit: Won in millions):

September 30, 2013 December 31, 2012 Book value Fair value Book value Fair value AssetsFinancial assets

Cash and bank deposit 948,918 948,918 824,576 824,576

Investment financial assets 1,767 1,767 1,767 1,767

Card assets 9,229,678 9,698,817 9,707,038 10,119,434Other assets 171,393 173,879 182,292 182,697

Total 10,351,756 10,823,381 10,715,673 11,128,474 Liabilities Financial liabilities Borrowings 285,000 285,516 487,500 488,832

Bonds payable 6,403,903 6,578,251 6,533,176 6,740,956 Other liabilities 1,395,071 1,395,061 1,517,677 1,517,676

Total 8,083,974 8,258,828 8,538,353 8,747,464

The Company’s valuation techniques and relevant policies with regard to the fair value are the same as those used for previous year.

(2) Netting on financial assets and financial liabilities

Derivative assets and derivative liabilities recognized by the Company can be set off in accordance with the future events described in derivative master netting agreements.

The effects of netting agreements as of September 30, 2013, and December 31, 2012, are as follows (Unit: Won in millions):

September 30, 2013 Related amounts not set off in

the consolidated statement of financial position

Grossamounts of recognizedfinancial assets/

liabilities

Grossamounts of recognizedfinancial

liabilities/ assets set off

in the consolidated statement of

financial position

Net amounts of financial

assets/liabilities presented


financial position

Financial instruments

Cash collateral

pledged Net amount Financial assets

Derivatives assets 2,513 - 2,513 1,190 - 1,323 Financial liabilities Derivatives liabilities 42,841 - 42,841 1,190 - 41,651

- 24 -

December 31, 2012 Related amounts not set off in

the consolidated statement of financial position

Grossamounts of recognizedfinancial assets/

liabilities

Grossamounts of recognizedfinancial

liabilities/ assets set off


financial position

Net amounts of financial

assets/liabilities presented


financial position

Financial instruments

Cash collateral

pledged Net amount Financial assets

Derivatives assets 901 - 901 219 - 682 Financial liabilities Derivatives liabilities 53,555 - 53,555 219 - 53,336

(3) Fair value hierarchy

All financial instruments at fair value are categorized into three fair value hierarchy levels. The method of categorizing fair value hierarchy levels is the same as the one used for previous year.

The table below provides the Company’s financial assets and financial liabilities recorded at fair value in the condensed consolidated statements of financial position as of September 30, 2013, and December 31, 2012 (Unit: Won in millions):

September 30, 2013

Book value Fair value Level 1 Level 2 Level 3 Financial assets

Derivatives assets 2,513 2,513 - 2,513 - Financial liabilities Derivatives liabilities 42,841 42,841 - 42,841 -

December 31, 2012

Book value Fair value Level 1 Level 2 Level 3 Financial assets

Derivatives assets 901 901 - 901 - Financial liabilities Derivatives liabilities 53,555 53,555 - 53,555 -

The table below provides the Company’s financial assets and financial liabilities that are carried at cost since the fair values of the financial instruments are not readily determinable in the condensed consolidated statements of financial position as of September 30, 2013, and December 31, 2012 (Unit: Won in millions):

As of September 30, 2013 As of December 31, 2012 Investment financial assets

Financial assets AFS (*) 1,767 1,767

(*) Financial assets AFS are unlisted equity securities and recorded at cost since they do not have quoted prices in an active market and the fair values are not measured with reliability.

(4) The Company recognizes the transfers on the date of the event of change in circumstances that caused the transfers.

- 25 -

(5) Valuation techniques and inputs used in measuring financial assets and financial liabilities categorized within Level 2

- Derivative assets and derivative liabilities Derivative assets and derivative liabilities consist of currency swaps and interest rate swaps. Fair value of a currency swap is measured using reporting period-end’s forward exchange rate whose term is the same as residual period to maturity of the currency swap. In case that the forward exchange rate whose term is matched to the residual period to maturity is not disclosed in the market, the forward exchange rate is assumed by interpolating using announced forward exchange rates by terms. Discount rate used in measuring fair value of a currency swap is a yield curve deducted by announced interest rate in the market.

Discount rate and forward interest rate used in measuring fair value of an interest rate swap is determined based on a yield curve deducted by announced rates in the market as of reporting period-end. The fair value of an interest rate swap is measured by discounting future cash flows assumed using the forward interest rate above.

The inputs measuring a currency swap and an interest rate swap are deducted by observable forward exchange rates and yield curves in the market as of reporting period-end. Therefore, the Company classifies a currency swap and an interest rate swap as Level 2 in fair value hierarchy.

(6) There are no significant changes in business environment or economic environment that affect fair values of financial assets and financial liabilities held by the Company as of September 30, 2013.

(7) Book value of financial assets and financial liabilities

The table below provides book value by category of financial assets and financial liabilities recorded at fair value in the consolidated statements of financial position as of September 30, 2013, and December 31, 2012 (Unit: Won in millions):

September 30, 2013 Financial assets at fair value through profit or loss (“FVTPL”)

Loans and receivables

Financialassets

AFS Hedging

derivatives Total Trading

Designatedat

FVTPL Financial assets

Cash and bank deposit - - 948,918 - - 948,918

Investment financial assets - - - 1,767 - 1,767

Card assets - - 9,229,678 - - 9,229,678Other assets - - 168,880 - 2,513 171,393

Total - - 10,347,476 1,767 2,513 10,351,756

September 30, 2013 Financial liabilities at

FVTPL

Amortized cost

Hedging derivatives Total Trading

Designatedat

FVTPLFinancial liabilities Borrowings - - 285,000 - 285,000 Bonds payable - - 6,403,903 - 6,403,903 Other liabilities - - 1,352,230 42,841 1,395,071

Total - - 8,041,133 42,841 8,083,974

- 26 -

December 31, 2012 Financial assets at FVTPL

Loans and receivables

Financialassets

AFS Hedging

derivatives Total Trading

Designatedat

FVTPL Financial assets

Cash and bank deposit - - 824,576 - - 824,576

Investment financial assets - - - 1,767 - 1,767

Card assets - - 9,707,038 - - 9,707,038Other assets - - 181,391 - 901 182,292

Total - - 10,713,005 1,767 901 10,715,673

December 31, 2012 Financial liabilities at

FVTPL

Amortized cost

Hedging derivatives Total Trading

Designatedat

FVTPLFinancial liabilities Borrowings - - 487,500 - 487,500 Bonds payable - - 6,533,176 - 6,533,176 Other liabilities - - 1,464,122 53,555 1,517,677

Total - - 8,484,798 53,555 8,538,353

(8) Net profit or loss of financial instruments by categories

Net profit or loss of financial instruments by categories for the nine months ended September 30, 2013 and 2012, is as follows (Unit: Won in million):

September 30, 2013

Interest income

Interest expense

Card revenue

Card expenses

(Reversalof)

Impairment loss

Valuationgain (loss)

Disposal gain (loss)

Foreign currency

translationgain (loss)

Foreign exchangegain (loss)

Financial assets Loans and receivables 15,214 - 1,823,717 767,313 - - - 38 6,235

Financialassets AFS - - - - 81 - - - -

Hedgingderivatives - - - - - - - - -

Financialliabilities

Financialliabilities at amortized cost - 233,872 - - - - - (3,600) -

Hedgingderivatives - - - - - 3,600 807 - -

Total 15,214 233,872 1,823,717 767,313 81 3,600 807 (3,562) 6,235

- 27 -

September 30, 2012

Interest income

Interest expense

Card revenue

Card expenses

(Reversalof)

Impairment loss

Valuationgain (loss)

Disposal gain (loss)

Foreign currency

translationgain (loss)

Foreign exchangegain (loss)

Financial assets Loans and receivables 16,085 - 1,779,520 776,087 - - - 28,681 5,712

Financialassets AFS - - - - 134 - - - -

Hedgingderivatives - - - - - - (799) - 799

Financialliabilities

Financialliabilities at amortized cost - 259,203 - - - - - (11,768) -

Hedgingderivatives - - - - - (16,921) - - -

Total 16,085 259,203 1,779,520 776,087 134 (16,921) (799) 16,913 6,511

29. NET INTEREST INCOME (EXPENSES):

Net interest expenses for the three months and nine months ended September 30, 2013 and 2012, are as follows (Unit: Won in millions):

2013 2012 Three months

ended September 30.

Nine months ended September 30.

Three months ended September 30.


Interest income Cash and bank

deposit 4,381 13,873 5,203 14,085 Others 311 1,341 835 2,000

Total 4,692 15,214 6,038 16,085 Interest expenses

Borrowings 4,186 14,561 6,117 19,637 Bonds payable 72,673 219,188 79,793 239,404 Others 25 123 52 162

Total 76,884 233,872 85,962 259,203 Net interest

expenses (72,192) (218,658) (79,924) (243,118)

- 28 -

30. NET COMMISSION INCOME:

Net commission income for the three months and nine months ended September 30, 2013 and 2012, is as follows (Unit: Won in millions):


ended September 30.




Commission income Card assets 378,125 1,136,196 377,839 1,125,264

Total 378,125 1,136,196 377,839 1,125,264Commission expense Service fee 133,699 423,140 135,713 408,828 Financial payment fee 2,900 8,824 3,292 9,831 A new credit sale handling

fee 33,682 120,151 32,610 93,790

Merchants co-payment fee 15 45 21 65 Overseas payment fee 9,773 35,679 11,896 30,290 Other 12,833 37,584 9,104 24,837

Total 192,902 625,423 192,636 567,641Net commission income 185,223 510,773 185,203 557,623

31. OTHER OPERATING REVENUE AND OTHER OPERATING EXPENSES:

Other operating income and other operating expenses for the three months and nine months ended September 30, 2013 and 2012, are as follows (Unit: Won in millions):


ended September 30.




Other operating revenue Foreign exchange gain 3,079 9,095 2,364 7,804 Foreign currency

translation gain - - 16,916 16,929 Gain on derivative

transactions 807 807 - - Gain on valuation of

derivatives (60,459) 3,600 (11,768) - Others 5,048 23,046 14,794 38,369

Total (51,525) 36,548 22,306 63,102 2013 2012 Three months

ended September 30.




Other operating expenses Foreign exchange loss 1,332 2,860 387 1,293 Foreign currency

translation loss (60,459) 3,562 (11,757) 16 Loss on derivative

transactions - - - 799 Loss on valuation of

derivatives - - 16,921 16,921 Others 10,219 51,979 6,910 23,100

Total (48,908) 58,401 12,461 42,129

- 29 -

2013년 3분기 검토보고서 en

Economy & Finance

Transcript of 2013년 3분기 검토보고서 en