Woori Bank 2011 Annual Report

2011 annual report

our bank, your confidence

Contents

our bank, your confidence

04 _ about Life, about Confidence06 _ Special Customer Interview 16 _ our Bank, your Confidence

18 _ Message from the CEO 22 _ Financial Highlights 24 _ News Highlights 26 _ Board of Directors & Managements 28 _ Corporate Governance

developing confidence

32 _ Risk Management 34 _ Happier Customers 36 _ Ethical Management 38 _ Global Business

experiencing confidence

43 _ Retail Banking 45 _ Private Banking 46 _ U-Banking / Smart Banking47 _ SME Banking 48 _ Corporate Banking 49 _ Credit Card 50 _ Investment Banking 51 _ Trading & Derivatives 52 _ Retirement Pension 53 _ Product Development

sustaining confidence

57 _ Creating Financial Opportunities (Microcredit)60 _ Inspiring Our People 62 _ Sharing Hearts

financial review

65 _ Management’s Discussion and Analysis 69 _ Independent Auditor’s Report

158 _ Organization Chart160 _ Global Networks

01

30

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54

64

ContaCt information

Directed by Kim, Eun Kyung(Christine)

IR Manager, tel: 82-2-2002-3186, [email protected]

Created by Lucre Beyond Inc.

www.lucrebeyond.com

what makes you

confident in life

?

about lifeOur dedicated team of employees develops and delivers financial products and services of the highest standard. We do all we can to further improve those standards, and we take pride in helping to make life happier and more confident for all our customers, in Korea and around the world.

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about confidenceConfidence is a fundamental human emotion, a building block for happiness in life. At Woori Bank, “Our Bank” takes prides in ensuring “Your Confidence”.

Choi, Jung Min · 36-year-old · housewife · Haeundae-gu, Busan

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prepared.

As a mother of a child, I naturally prioritize the happiness and the welfare

of my child over all other issues, especially in regards to readily preparing

for my son’s future career. When I become financially stable, I know I am

going to feel more confident in guaranteeing him a stable future.

Woori Bank has a wide variety of products for parents who are deciated in

providing their children with long-term financial well-being. These include Woori

Children Love Bank-book, Mother’s Savings Account, and Children-Love Card.

OUR bANk, yOUR cONfidENcE

I dream of becoming a respectable university professor like

Michael J. Sandel after studying abroad. Although it still seems

distant, I go to the university library and study hard every day

to achieve my goal of becoming a well-known professor who

teaches at one of the top universities in the world.

And I want to be smart in reaching my goal. Saving money has

become second nature to me in achieving my dreams. Wouldn’t

it be exciting to see those dreams come true?

Woori Bank supports the dreams of young people as they move forward

in their lives. We offer Woori Student Loan for Studying Abroad, Magic 7

Savings, and My Style Free Savings. We offer them opportunities through

customized products to save at a high interest rate, and also provide

student loans for tuition fees, so their dreams are never abandoned due to

financial constraints. We offer confidence to back up the dreams of youth.

smart.

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Cha, Jung Ha · 21-year-old · university student · Seodaemoon-gu, Seoul


sustainable.

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Meeting buyers from all over the world these days, I am thankful for my

current business development worldwide. I still remember the initial stage

of my business with only handful of local buyers and limited financial

support. But now business definitely flourished much stronger with

growing global networks. I feel proud of my success in business and I dream

of leading a truly global company one day.

Woori Bank offers loan products like We Dream Loan and Safe e-Purchasing Card

Loans to help promising companies continue to grow and succeed. Any company

can prosper with the help of its community and valuing our role in that community,

Woori Bank is pleased to serve as a reliable partner for all our customers.

Lee,

Jon

g H

ee ·

48-y

ear-

old

· CEO

· G

angn

am-g

u, S

eoul


trusted.

My wife and I opened a coffee shop after I retired from a company

working as a full-time employee for over 30 years. I was afraid of

trying something new in my 50’s, but after becoming a Barista, one

of my happiest moments now is enjoying and serving a cup of fresh

morning coffee. I have my own shop to take care of and I am able to

work flexibly according to my needs. So this was definitely the right

choice. There is a Korean saying that “those who dream, and strive

for something new in life, give more than those who stand still”; that

definitely holds true for me.

Woori Bank offers various products,

such as Woori Franchise Loan, SOHO

Plus Loan and Woori Partners Card, to

support those who are starting up a new

business. We will strive to offer them

products that meet their every need, so

that new entrepreneurs can enjoy a more

prosperous and successful life.

Kim

, Won

Sup

· 52

-yea

r-ol

d · c

offe

e sh

op o

wne

r · C

hung

-gu ,

Uls

an

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secured.

In every spring, I am thrilled to breathe in a fresh

spring scent and bathe in the shining sunlight. As I

walk with my husband, along a boulevard dotted with

trees, I am nostalgic of my life in youth and imbue new

hopes for my life ahead. When the average life span is

100, I think I am still very young. Unlike the past, many

silver generations, like me, seem to positively gear up

for their post-retirement life to start a life anew. I will

continue to make steady investment for my life ahead

to enhance financial stability.

Woori Bank offers diverse products to help customers

who plan to better prepare their post-retirement lives.

These include Happy Life Retirement Pension Bank-book,

Retirement Pensions, and Interest-Prepaid Time Deposit.

Par

k, J

eong

Ja

· 61-

year

-old

· fo

rmer

teac

her

· Suw

on ·

Gye

ongg

i Pro

vinc

e


It takes a corporate culture that is steeped in the highest standards to foster

genuine teamwork and commitment to the best possible service.

As the first bank to be established in Korea, and having served our customers

for 113 years, we have overcome innumerable challenges along the way. And

we are once again facing uncertain economic times.

our bank,

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our bank,

Our common goal – to keep creating customer happiness – is the key to the

special dedication, the special creativity, and the special sense of responsibility

shared by everyone at Woori Bank. And it is this common goal that drives us

to excellence in banking. We aspire to be the undisputed No.1 Bank in Korea,

and the most globally diverse as well; that means that our quality, even now,

must take another step. Our ceaseless efforts to get better strengthen the

confidence of our staff and the confidence of our customers.

your confidence your confidence

Message from the CEO

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dear customers,

I would like to extend my sincere thanks to all our customers for giving Woori Bank your

trust and commitment over the past years.

In 2011, Woori Bank achieved net income of KRW 2,069 billion, up KRW 808 billion

from the previous year, and net interest income and non-interest income of KRW 5,200

billion and KRW 1,063 billion respectively, despite the continued economic downturn

at home and abroad and ever-fiercer competition in the market. This reaffirmed our

solid profit structure and business capabilities. Moreover, our BIS capital adequacy ratio

reached 13.78% and the ROA and ROE profitability indicators stood at 0.59% and 7.93%

respectively, levels which confirm our presence as a leading domestic bank.

Meanwhile, our constant efforts to clean up our balance sheet significantly improved the

Bank’s Non Performing Loan(NPL) ratio, to 1.65% as of year-end 2011, down from 3.34%

as of year-end 2010. We will continue to effectively manage asset soundness in 2012.

The financial environment in 2012 will not be easy. As the financial crisis in Europe

and the wider global economic downturn continue, delays in the domestic economic

recovery and possible household defaults put greater emphasis on risk management.

In particular, because only four major commercial banks dominate the banking sector,

competition is expected to grow fiercer.

Supported by the trust of our customers, we are the representative traditional

Korean bank with the longest history for over 113 years. By sharing our hearts

harmoniously, we promise we will continue to fulfill our greater financial

duties in enriching the nation and the national economy, as well as our social

responsibilities in supporting the society in need.


No.1We will make sure that 2012 will be a year when uncertainties and crises become

opportunities by fostering a sense of unity among all 15,000 staff, and by implementing

fundamentally strong and profit-oriented management.

We will undertake preemptive risk management by preparing ourselves against economic

uncertainties and greater volatility, diversify our foreign currency financing structure to

ensure stable liquidity management, and do our utmost to manage our loan-deposit ratio.

We are committed to expanding our network at home and abroad, exploring new market

and new businesses opportunities. Meanwhile, net interest margin(NIM) will be maintained

at a high level, profit structure will be stabilized by raising non-interest income(such as fee

revenues), and profit oriented growth will continue by focusing on prominent customers/

assets.

Our Bank will return the love that customers have given to us to the society as a whole.

We will also expand our support in helping the temporarily troubled or to–be reorganized

SMEs. Furthermore, the Bank will act as a microcredit lender in cooperation with

Woori Miso Financial Foundation, and will help the underprivileged through a strong

commitment to social contribution activities.

We promise to fulfill our role and responsibilities as a bank that enriches the nation and

the national economy. We have shared growth for 113 years, and this would not have

been possible without the love and support of our customers.

Woori Bank has set itself a medium to long-term goal of becoming not only

the No.1 bank in Korea, but also amongst the top 10 in Asia.

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Supported by the trust of our customers, we are the representative traditional Korean

bank with the longest history for over 113 years. By sharing our hearts harmoniously, we

promise we will continue to fulfill our greater financial duties in enriching the nation and

the national economy, as well as our social responsibilities in supporting the society in

need.

Woori Bank has set itself a medium to long-term goal of becoming not only the No.1

bank in Korea, but also amongst the top 10 in Asia. We will not only become a bank that

represents Korea, but also a world class bank that broadens it’s financial horizon based on

the nation’s largest overseas network and a competitive workforce.

I would like to ask for your continued encouragement and support as we seek to achieve

our vision of becoming the No.1 Bank in Korea.

Please accept my warmest wishes for your health and happiness throughout the year.

Thank you.

Lee, Soon WooPresident and Chief Executive Officer


Financial Highlights

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2011total assets (Unit: KRW billion) 20102009

242,

472

228,

555

226,

927

242,472

2011roe (Unit: %) 20102009

7.937.

98

7.327.93

2011bis ratio (Unit: %) 20102009

13.7

8

14.6

5

14.3

9

13.78

2011net income (Unit: KRW billion) 201020092,

069

1,26

1

954

2,069

2011roa (Unit: %) 20102009

0.59

0.49

0.41

0.59

2011tier i ratio (Unit: %) 20102009

10.7

4

11.4

0

10.4

0

10.74

2011

242,472

5,389

41,389

191,909

376

3,409

224,346

164,092

19,174

19,812

21,267

18,126

2011

5,200

1,063

459

271

249

39

44

837

7,099

1,964

2,553

76

2,659

1

590

2,069

Total Assets

Cash

Financial Assets

Loans and Receivables

Associates

Tangible & Others

Total Liabilities

Deposits

Borrowings

Debentures

Other Liabilities

Total Shareholders' Equity

Net interest income

Non-interest income

Fees & Commissions

Revenues on Securities

Gain on FX/Derivative Transaction

Trust Income

Revenues from Merchant Banking

Gains on investment Securities

Operating Revenue

Credit Cost

SG&A Expenses

Non-Operating Income

income before income Tax Expense

Gain on equity method Investments

Income Tax Expense

Net income

2009

226,927

3,728

41,564

178,161

249

3,225

210,007

150,125

20,752

23,476

15,654

16,920

2009

3,749

958

497

152

132

44

132

468

5,175

2,064

2,076

154

1,189

-

235

954

K-GAAP K-IFRS

2010

228,555

3,886

43,634

177,631

306

3,098

211,068

157,314

18,983

20,192

14,578

17,487

2010

4,488

1,083

455

330

187

45

65

793

6,364

2,560

2,264

(4)

1,537

1

275

1,261

Change (2010 VS 2011)

13,917

1,503

(2,245)

14,278

70

311

13,278

6,778

191

(380)

6,689

639

Change (2010 VS 2011)

712

(20)

4

(59)

62

(6)

(21)

44

735

(596)

289

80

1,122

0

315

808

* Bank account only under K-IFRS


balance sheet (Unit: KRW billion)

income statement (Unit: KRW billion)

News Highlights

Woori Bank was awarded No.1 Korean Bank of the Year for Second Straight Year by ‘The Banker’

November 30th, 2011

Woori Bank was chosen No.1 Korean Bank of the Year by The Banker. The Banker is the renowned financial magazine published by the Financial Times and is noted for announcing the world’s top 1,000 banks as well as giving awards to the desig-nated No.1 bank in each country.

The magazine cited Woori Bank’s growth of finan-cial performance and shareholder value over the past three years, strategies to gain market domi-nance, efforts to support SMEs, and outstanding achievements compared to the competitors as determining factors in its selection, following the same award in 2010. This selection reaffirmed the excellence of Woori Bank. In 2012, we will con-tinue to build a position as a leading bank in Asia.

Woori Bank was designated as the Bank of the Year in 2004, 2007, 2008, 2010 and 2011. Woori Financial Group ranked No.1 in Korea, and No.72 among the world’s top 1,000 banks as chosen by The Banker in terms of Tier 1 Capital, as of 2010-end.

Lee, Soon Woo Appointed as the 47th

President and Chief Executive Officer of Woori Bank

March 24th, 2011

Lee, Soon Woo was appointed as the 47th Presi-dent and Chief Executive Officer of Woori Bank on March 24th, 2011.

He said in his inauguration speech, “I feel honored and gratified to serve Woori Bank. Let’s make sure that we become the No.1 bank in Korea, and then move beyond that, to become a leading bank in Asia and beyond”. CEO Lee, Soon Woo noted the 5 keyword of management, ‘Customer First’, ‘Site-oriented Management’, ‘Ethical/Moral Business(Proper Sales)’, ‘Glocaliztion’ and ‘Risk Management & Clean up of our Bad Assets’. He also added “Let’s make our workplace a joyful one, so that our staff cannot wait for Monday to come”. He emphasized the concept of ‘People First’, say-ing that our bank should prioritize staff satisfaction first and our staff in return should do their utmost to achieve customer satisfaction.

He formed and managed a new ‘Task Force of Management Innovation’ for two months after he was inaugurated, and announced new ‘Customer and Site-oriented Management Innovation Mea-sures’ on June 10th, 2011. On the same day, he designated ‘Customer First’ and ‘Site-oriented Management’ as management measures. Woori Bank also introduced a new slogan, “The Bank for Customer Convenience”, which shows clearly where our priorities lie. Our new CEO has also emphasized his personal commitment of making Woori Bank the No.1 bank in Korea, which refers to becoming the representative bank of Korea on a global basis.

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2011Winning the Top Customer Satis-faction Ranking and Inducted into KMAC’s Hall of Fame

November 2nd, 2011

Woori Bank received its fifth consecutive Grand Prize for customer satisfaction management from Korea Management Association Consult-ing (KMAC), and was inducted into KMAC’s Hall of Fame. This is attributable to customers’ trust in a bank with a 113-year history and a tradition of customer service.

President & CEO Lee, Soon Woo’s strong commitment to customer service has been strongly communicated to all staff since 2009, and the Bank has continuously put into action its mission to become “The Bank for Customer Convenience”.

The Hanmaeum (One Heart) Walk through Korea

July 1st – 23rd, 2011

Woori Bank conducted the ‘Hanmaeum (One Heart) Walk through Korea’ from July 1st – 23rd, 2011, where 112 staff walked together to mark the 112th anniversary of Woori Bank. The walkathon started at Haenam, the south-ernmost tip of the country, in South Jeolla Province, and passed through Suncheon, Jinju, Gumi, Daejeon, Cheonan, Suwon and Incheon. The final destination was KINTEX, Ilsan where the Bank’s management strategy meeting for the latter half of 2011 was held. The walkathon covered some 720 km, and the 112 participants walked 50 - 70km each for two days and one night in a relay format. Despite the heavy rain and sizzling heat of a Korean summer, the participating staff were proud of their success, representing the Bank’s No. 1 spirit of challenge.

Smart Banking One-Touch Service, Ranks First in the Banking Sector of the Korea Smart App Assessment Index

June 28th, 2011

Woori Bank’s smart banking ‘one-touch’ service was ranked first in the banking sector of the Ko-rea Smart App Assessment Index (KSAAI), co-organized by Sookmyung Women’s University’s Web Development Research Institute and the Electronic Times.

The KSAAI is an assessment index covering five categories – business, customer immersion, content, design and technology. The Bank has a dominant position as No.1 bank in the business and technology sectors, and ended up as the first in the overall score.

In particular, in the business category, the Bank gained high scores through convenience and us-er-friendliness in money transfers and also earned high scores by its commitment to take the visually impaired needs into consideration when design-ing and implementing this app.


Kim, Yong Woo

Standing Audit committee Member / director

•2nd Deputy Secretary General, The Board of Audit and Inspection of Korea •Deputy Director, The Board of Audit and Inspection of Korea •Passed the 23rd National Administrative Examination•M.A. in Public Administration, Syracuse University•B.A. in Economics, Yonsei University

Lee, Soon Woo

President and cEO

•Deputy President / Director•Deputy President & Head, Consumer Banking Business Unit, Woori Bank •Executive Vice President, Consumer Banking Business Unit, Woori Bank•Executive Vice President, Management Support Unit, Woori Bank•Head, Corporate Financial Unit, Hanvit Bank •MBA, Korea University Business School•B.A. in Laws, Sungkyunkwan University

Kim, Yang Jin

deputy President / director

•Currently Senior Managing Director, Woori Financial Group•Executive Vice President, Operation & Support Unit, Woori Bank•Compliance Officer, Woori Bank•Senior Relationship Manager, Jung-ang Corporate Banking Center, Woori Bank•Head, Synergy Promotion Dept, Woori Bank•B.A. in Agricultural Education, Seoul National University

STANdINg dIRECTORS

Board of Directors & Management

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NON-STANdINg dIRECTOR

Lee, Pal Seung•Currently Chairman & CEO, Woori Financial Group•Currently President, Woori Multicultural Scholarship Foundation•CEO, Seoul Philharmonic Orchestra •President & CEO, Woori Investment & Securities •Managing Director, Hanil Bank•AIM(Advanced Information Management) Program, KAIST •MBA, Korea University•B.A. in Laws, Korea University

OuTSIdE dIRECTORS

Lee, Yong Keun•Adviser, Korea Anderson Group •2nd President, Financial Supervisory Commission and President of Financial Supervisory Service •Executive Director, Asia Development Bank•Passed the 9th National Administrative Examination, Division of Finance and Economy•Ph.D in Public Administration, Han Yang University•M.A. in Economics, Institute of Social Studies, The Netherlands•M.A. in Public Administration, Seoul National University•B.A. in Economics, Korea University

Lee, Kwi Nam•Currently Attorney, LKN Law Institute•61st Minister, Ministry of Justice Republic of Korea•Vice Minister, Ministry of Justice Republic of Korea•Passed the 22nd National Bar Exam•B.A. in Public Administration, Korea University

Yoo, Kwan Hee•Currently Chairman, Korean Academic Society of Business Administration•Currently Professor, Business Administration and Management, Korea University•Chairman, Korean Association of Small Business Studies•Ph.D in Business Administration and Management, Indiana State University•M.A. in Business Administration and Management, Indiana State University•B.A. in Business Administration and Management,

Seoul National University

Eun, Soong Pyo •Currently Professor, Law School, Yeungnam University•Currently Vice Chairman, Korea Public Land Law Association Inc •Professor, Department of Police and Criminal Justice, Silla University •Bank of Korea•Ph.D in Laws, University Tübingen, Germany•B.A. in Laws, Yonsei University

Kim, Jung Sik•Currently Dean, College of Business & Economics, Yonsei University•Currently Dean, Graduate School of Economics, Yonsei University•Currently Chairman, Korea International Finance Association •Managing Director, Korea Money & Finance Association •Professor, College of Business & Economics, Yonsei University •Ph.D. in Economics, Claremont Graduate University •M.A. in Economics, Yonsei University•B.A. in Economics, Yonsei University

Chai, Hee-yul•Currently Professor, College of Economics, Kyonggi University•Non-standing member, Financial Supervisory Commission •Associate professor, Universite de LilleⅡ, France •Ph.D in Economics, L’Universit de Paris X, France •M.A. in Economics, Seoul National University•B.A. in Economics, Seoul National University

Chung, Wook Ho•Currently Head, Department of Special Asset

•Korea Deposit Insurance Corporation (KDIC)•Head, Department of Risk ManagementⅡ, KDIC•Head, Department of Asset Recovery Department, KDIC•B.A. in Laws, Sungkyunkwan University

ExECuTIvE vICE PRESIdENT

Choi, Seung NamFinancial Market Business Unit

Kang, WonConsumer Banking Business Unit

Yoo, Jung KeunInstitutional Banking Business Unit

Jung, Hwa YoungHuman Resources Unit

Kim, Jong OunRisk Management Unit

Seo, Man HoCredit Support Unit

Kim, Jang Hag Small & Medium Corporate Banking Business Unit

Son, Geun SunCompliance Officer

Baeg, Goog JongCorporate Banking Business Unit

Rhee, YoungtaeInvestment Banking Business Unit

Kim, Byung HyoGlobal Business Unit

Kim, Jin SeokCard Business Unit

Lee, Kwang GooFinance & Management Planning Unit

Lee, Dong GunOperation & Support Unit


CorporateGovernance

Composition of the Board of direCtors

As of the end of March 2012, Woori Bank’s Board of Directors consists of 11 execu-tive directors: one non-standing director, three standing directors and seven outside directors, appointed to increase the relevant expertise and independence of the Board. The seven outside directors are selected based on their experience in the fields of finance, management, law, accounting and public relations; many are also well-known public figures. They support and monitor the Bank’s strategic decision-making and

overall business affairs.

major aCtivities for 2011

The Board held 17 meetings in 2011 to dis-cuss a total of 58 pending issues and 63 briefings, and the overall attendance rate of outside directors was 92%.

At the request of the outside directors, an outside director meeting was held one week

prior to each full Board meeting, to ensure sufficient discussion and in-depth review of pending issues. Directors from different fields promoted effective bank management and maximized shareholders value by as-similating information from activities both inside& outside the Bank, and then giving onsite oriented advice based on these activi-ties & their expertise knowledge.

At each quarterly Board meeting, the quar-terly management records were agreed upon, and general discussions took place, as well as discussions on specific matters. The agenda of different meetings included: reporting on the submission of plans for the implementation of the Memorandum of Un-derstanding (MOU) signed with the Financial Supervisory Service (FSS); results and de-tails of the implementation of the MOU with Korea Deposit Insurance Corporation(KDIC); plans to issue foreign currency-denominated bonds; comprehensive briefings on ma-jor loans; briefings on NPLs; review of the implementation of the Board of Directors’ or-

ders, and briefings on the results of reviews; and, briefings on the activities of the various committees under the Board of Directors. Of particular note, plans were made to en-hance sector-specific expertise and com-petitiveness within the Group. Specifically, in January 2011, a provisional agreement was reached to launch the ‘Woori Fund Service’, a subsidiary which will independently under-take various important functions, including the analysis of fund management perfor-mance, verification of fund-based prices, support for development of fund products, and accounting tasks for funds. In addi-tion, in September 2011, it was provisionally agreed to separate the card business that was previously dealt with internally by the Bank. At the December meeting, the Board also confirmed its draft management plan, following in-depth discussions on many is-sues facing the Bank amid continuing mar-ket changes.

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Committees under the Board of direCtors

To suppor t the ef f ic ient operation of the Board of D i rectors, Woor i Bank has established the Board Governance Commit tee, Board Risk Management Committee, Board Audit Committee, Board Compensation Committee, and Board Audit Committee Member Recommendation

Committee.

Board Governance Committee The Committee actively suppor ts the Board of Directors by studying/reviewing the overall function & operation of the Board and also by deciding/examining management schemes regarding handover & training issues. The Committee also acts as the Outside Director Candidate Recommendation Committee, pursuant to

Article 22-3 of the Bank Act.

Board Risk Management CommitteeThe Committee meets at least quarterly and on an ad hoc basis to deliberate on

risk management strategies and policies, risk tolerance levels and transactions or exposures, thereby discern, measure and

monitor overall risks in a timely manner.

Board Audit CommitteeThe Committee establishes and executes internal audit plans, implement outcome evaluations, and implement ex-post audit measures to improve adequate internal control system and effectively evaluate

management performance measures.

Board Compensation CommitteeThe Committee is independent from the Bank’s management, and is in charge of establishing compensation policies, and monitoring the design and operation of the Bank’s performance-based compensation

systems.

Board Audit Committee Member Recommendation CommitteeThe Committee recommends candidates for the Audit Committee.

plans for 2012

In 2012, the Board will make significant contributions to the Bank’s management by discussing major issues at regular meetings. Already by end-March 2012, the Board of Directors had met five times, with agendas including the approval of financial statements as of year-end 2011 and approval of the Chairman of the Board of Directors. Board meetings will continue on issues such as analysis of management performance and the 2013 management plan. Meetings will also be held on an ad-hoc basis whenever needed, dealing with issues such as management goals, organization and financing.

In 2012, Woor i Bank wi l l ser ve as a rel iable par tner bank that excels and grows through transparent and efficient management innovation.

Type of Meeting

Shareholders’ Meeting, Board of Directors and Corporate Governance, etc

Accounting / Financial Management

Portfolio & Risk Management / Investment / Audit & Inspection / Gov’t Regulation

HR / Organizational Management

Others

Total

No. of Agenda Issues

24

10

11

7

6

58

No. of Briefings

18

13

19

8

5

63

Major Issues

- Holding regular shareholders’ meetings, operating the Board of Directors / Board of Directors’ Management Committee, discussing corporate governance issues, setting and implementing management plans and strategies, launching and realigning divisions

- Approving and changing financial statements of settlement, reporting and planning financial records, briefing on results and actions for reviewing the MOU, plans for issuing bonds (including foreign currency bonds), and managing credit limits

- Comprehensive briefs on major loans, investing in private equity funds, selling off NPLs, briefing on the status of NPLs, investment companies’ commitments to invest, dealing with audit and internal control issues, and managing and supporting special contributions of guarantee institutions for SMEs

- Performance evaluation / compensation, appointing staff, labor-management relations

TABLE OF CORPORATE gOvERNANCE


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Good risk management means having confidence in our systems and our people.

It enables us to take responsibility for our business actions, find new areas of

market strength, and apply these to our work. When bankers are secure in what

they have, quality and excellent performance is the logical consequence.

how canrisk management boost the quality of financial services?

developing confidence

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risk management organization

Woori Bank’s risk management consists of

three independent bodies, each providing

unique insights and checks on the Bank’s

risk environment.

1. The top decision maker is the Board

Risk Management Commit tee, which

meets at least quarterly to deliberate on

risk management strategies & policies, and

to set acceptable risk levels & limits.

2. The Executive Risk Management Com-

mittee holds monthly meetings to review

and revise business plans and department-

level strategies, to ensure continuous

adjustments in response to corporate risk

management strategies and policies. The

Executive Committee also reviews, adjusts

and controls matters in relation to fund

management, as well as risk-specific man-

agement measures.

3. The Risk Management Unit is an inde-

pendent organization which consists of the

Risk Management Department, in charge

of the overall existing risk management is-

sues, and the Loan Review Department,

which takes responsibility for the day-to-

day oversight of Woori Bank’s risk man-

agement operations.

2011 review

Credit risk management

In 2011, Woori Bank operated, managed and

verified new evaluation models (corporate

and retail) approved under the new BIS Inter-

nal Ratings Act, obtaining timely and relevant

reviews of their distinctiveness, predictability

and stability.

Using these models, bankruptcy rates for

each corporate rating and retail pool were es-

timated and verified by the Bank depending

on the time elapsed from approval. The Bank

ensures on a yearly basis that it maintains

distinctive models for separate corporate/

retail evaluation, and always double-checks

their stability and effectiveness in operation.

risk management “Risks Management is the key to

maintaining Profits”: Woori Bank

minimizes losses by identifying

risk quickly and accurately through

best-practice risk management

programs, building a bank that is

robust and reliable.

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market risk management

Woori Bank uses the Standard Approach

and the Internal Model to calculate capital

adequacy with respect to modeled market

risk events. The Standard Approach ap-

plies to specific risks provided under Finan-

cial Supervisory Service (FSS) guidelines,

while the Internal Model quantifies general

market risks at the 99% confidence level

using variance-covariance (delta-gamma)

techniques assuming a 10-day holding

period. Potential losses under extreme

situations(such as IMF) are measured us-

ing stress tests to prepare for any critical

events that might surface, and Internal

Model is validated by comparing Profit &

Loss vs VaR using a daily basis back test-

ing method.

operational risk management

For the second time, we successfully com-

pleted the FSS approval and review pro-

cess for our application regarding approval

of the High-level Internal Ratings-based

approach, and acquired final approval in

June 2009. Since then, we have applied it

to our BIS ratio calculation, while also con-

tinuing to improve management systems,

control structures and measurement sys-

tems for the maintenance and upgrading of

risk management.

To this end, we apply the ORM Index in

the Bank-wide performance management

index. We conduct OR coaching for units

struggling to meet the ORM Index, to help

them to reduce OR.

In response to changes in financial state-

ments and the adoption of IFRS, we have

opened a new account and encouraged

improvement of OR measurement systems.

plans for 2012

Credit risk management

In 2012, systems upgrades for credit risks

will unfold in multiple directions. The Bank

will use the early warning systems from the

scoring method developed in 2010, and

expand its usage so that it can be used in

credit approvals.

Corporate credit rating model(MEs/SEs) and retail(household, SOHO, credit cards) credit scoring model developed based on the 2005 ~ 2007 data. These models however will be enhanced within the first half of 2012 by utilizing recent data after 2008.

interest and liquidity risk management

We plan to complete the Phase 1 IT system

within June 2012 to calculate the Bank’s

l iquidity management ratios (LCR and

NSFR) in accordance with Basel III require-

ments. We will also regularly review the

interest rate and liquidity risk management

models by computerizing the back-test to

verify the interest VaR and EaR, as well as

customer behavior models.

operational risk management

We plan to implement the KRI, a key risk

indicator whereby OR can be monitored

in real time (currently done monthly), to

enhance the timeliness of ORM and sup-

port risk management on business sites.

Requirements for checking OR can be

done prior to the close of business and

can be reviewed on the same day. Notices

from the real time indicator can be sent via

SMS to the general manager of the branch,

who can then check the appropriateness

of transactions made on that day and alert

the staff if necessary, thus helping to lower

OR.

dEVELOPiNG cONfidENcE

Woori Bank wants to be the No.1 Bank in

Korea, and a vital part of this is creating

the very best in customer satisfaction. We

therefore undertake Bank-wide customer

satisfaction management based on me-

dium and long-term strategies that fully

reflect customer needs, customer satisfac-

tion analysis inside and outside the Bank,

and feedback from all our staff on a top

down or bottom up basis. The Bank’s

customer satisfaction unit consists of an

inverted pyramid oriented towards custom-

ers and staff on site, instead of the usual

corporate profit-oriented pyramid. Our top

priority is our customers, and everyone at

Woori Bank is aligned in the same direc-

tion.

CEO Lee, Soon Woo, who took the helm

in March 2011, unveiled a corporate slogan

“The Bank for Customer Convenience”

along with a series of management mea-

sures focused on customer first and site-

oriented management. We execute our

customer satisfaction program based on

specific strategies under the new slogan,

always aiming to be no. 1 in customer hap-

piness. These include a monthly phone

survey of customers who visited a branch

the previous day, to evaluate the service

they had received. We also reflect the voice

of the customer as submitted through vari-

ous channels to the ‘customer satisfaction

KPI’.

review of 2011 and plans for 2012

differentiated Cs programs

In 2011, Woori Bank held a differentiated

training session called Personal Image

Making(PIM) of the staff and thereby raised

awareness about the customer first mind-

set. This contributed to stronger customer

loyalty and improved business capabilities.

Moreover, the Bank shared customer feed-

back via video training on ‘Woori Action’,

and proposed active measures to improve

customer satisfaction.

happier CustomersOur top priority is the principle

of ‘Customers First’(customer

satisfaction). Woori Bank will enable

our customers to conveniently and

efficiently access all our services in

Korea and beyond. We will do this

by prioritizing them in everything

we do.

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A training session called ‘Two-Day One-

Night Harmony’ was launched, and re-

ceived positive feedback from our staff. It

has been particularly effective at improving

internal communication and raising aware-

ness about the importance of a positive

attitude. In May 2011, 823 customer sat-

isfaction leaders participated in the ‘2011

Customer Satisfaction Leader Hanmaeum

Festival’ to boost morale and strengthen

customer satisfaction leadership.

We published the Service Webzine in 2011

to enhance ‘Customer First’ service, and to

raise our competitiveness by sharing infor-

mation. Heads of branches and other staff

greeted customers at all our branches,

thus improving our image with custom-

ers and contributing to a happy culture for

staff.

We also undertook a ‘Service Focus’, se-

lecting issues and themes every quarter

related to major services, reflecting them in

our service, and ensuring that customers

really were able to feel the change.

We have also conducted surveys to raise

customer satisfaction, and set up a Cus-

tomer Satisfaction Portal System and a

Cyber Warning System. The Customer Sat-

isfaction Portal System is to prevent cus-

tomer complaints and raise standards of

customer satisfaction, based on data from

branches, and to use Woori Bank’s exclu-

sive customer satisfaction and integrated

voice of the customer system to strengthen

marketing functions. The Cyber Warning

System monitors customer feedback in

real time, and thus improves service, pre-

vents customer complaints and improves

products and systems.

Creating a work Culture for Customer happiness

Our philosophy is that a bank where all

the staf f are happy makes customers

happy as well, and so we strive to facilitate

a happy work culture. In particular, we

garnered great feedback from our staff

on the congratulatory letters sent from

the Bank’s CEO to the staff who excel in

customer satisfaction, and on the program

for ‘Finding Partners in Customer Satis-

faction’ boosting morale and therefore, in

turn, boosting customer happiness. The

number of branches excelling in customer

satisfaction increased, which has further

encouraged our staff to strive in improving

customer satisfaction.

The Staff Satisfaction Center organized

various programs, such as ‘Happy Monday,

Reach out for Luck’, weekend trips, and a

‘one day meditation experience’. In 2012,

we plan to upgrade all customer-related

activities, including the branch environ-

ment, and continue to initiate projects that

befit us as a bank that has been inducted

into the Customer Service Hall of Fame.

awards

- Top in Customer Satisfaction

Management Award, inducted into the Customer Service Hall of Fame and Best CEO Award (Korea Management Association Consulting(KMAC))- Grand Prize of Customer Delight Award (Korea Economic Daily), Four Straight Years- 1st in Korean Standard Service Quality Index(KS-SQI) Banking Sector for Customer Satisfaction (Korean Standards Association)


Changes in the financial environment such

as the recent global financial crisis, and ex-

pansion of the Bank’s business operations,

increase various forms of market and legal

risks. Woori Bank aims to grant sustain-

able growth to the national economy and

social development by ethically managing

and fulfilling our social responsibilities to-

wards all stakeholders such as customers,

shareholders, staff, the nation and society.

To this end, we established Woori Bank’s

Code of Ethics to serve as principles by

which all staff must abide. We also set in

place “Woori’s Promises” and “Job-specific

Guidelines”, to train staff, to comply with

our guidelines, and to increase customer

happiness.

review of 2011

praCtiCing woori Bank’s Code of ethiCs

Woori Bank put into place various prac-

tices and a system to ensure our Code of

Ethics is implemented.

operating the Clean Center:

The ‘Clean Center’ facilitates reporting or

whistleblowing on ethical matters as well

as consulting on ethical management. Vi-

tally, it protects whistleblowers, to encour-

age ethical management.

operating a reporting system for gift & entertainment exchange:

If money or gifts and entertainment are

offered by business customers, clients or

other staff, and if for special occasions ex-

ceeds KRW 50,000, they must be reported

to the Legal Support Division. So far, ap-

proximately 34 cases have been reported

and KRW 18 million has been returned.

ethical managementAll staff at Woori Bank takes part

in ethical management programs,

and make sure that ethical

management takes root in its

daily practices, so that customers,

shareholders and the community

can rely on us completely. Our

bank remains an exemplary

ethical company.

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operating the fit & proper employee evaluation system:

The Ethical Management Support Council

meeting was held every month in 2011, and

the Council honored 1,778 excellent cases

of ethical management.

public sale of Congratulatory gifts:

In Korea, it is traditional to offer celebra-

tion wreth/flowerpot to congratulate newly-

appointed executives. Woori Bank now

sells these gifts on behalf of social welfare

organizations, and, in 2011, we sold 658

gifts and donated revenues of KRW 16 mil-

lion.

open legal serviCes and prinCiple-Based monitoring

Woori Bank of fers open legal services

whereby in-house lawyers resolve staff

complaints on legal matters through direct

legal consulting, assisting in an investiga-

tion, and consulting on litigation, covering

a whole range of civil, criminal and house-

hold matters.

In 2011, we intensified our checks of busi-

ness units’ legal monitoring. Each busi-

ness unit now completes a standardized

checklist for self-evaluation on whether

prior reviews were completed regarding

major legal issues that might surface when

handling new products, whether legal

monitoring was implemented regularly for

staff, and whether prior reviews were com-

pleted on documents submitted to outside

institutions. Each unit submitted its results

so that all legal risks could be minimized.

We check that all product-specific princi-

ple-based guidelines is followed, and post

monthly results on Woori Bank’s Intranet.

In addition, we provide training material on

ethical management, such as our monthly

“Ethical Compliance Practices” manual,

containing important reminders and practi-

cal cases on ethical management, as well

as posting “100 Questions and Answers on

Ethical Management” for training through

case studies. We also took part in the 32nd

CEO Forum on Ethical Management and

the 14th Ethical Management Committee

of the Korea Chamber of Commerce and

Industry.

plans for 2012

In 2012, Woori Bank will continue to aim in

being the best and most transparent bank

in Korea.

119 (the korean version of 911) site-oriented legal services:

We will provide legal assistance from in-

house lawyers to any staff requiring legal

help for work or for personal reasons.

Moreover, we plan to extend these ser-

vices through legal meetings at business

units and lectures conducted by in-house

lawyers.

strengthen training in ethical management:

We will encourage staff to practice autono-

mous ethical management through practi-

cal training such as the “100 Questions

and Answers on Ethical Management”, and

the “Ethical Compliance Practices” manual.

We will also encourage staff to practice

ethical management in their daily business

operations through in-depth training for all

specialists, including private banker, audit-

ing officers and compliance officers.

provide practical legal advice:

We will strengthen problem-solving skills

on legal matters for staff, and ensure that

principle-based business can become

embedded through legal support. We will

therefore highlight and explain recent fi-

nancial litigation, publish columns written

by attorneys and publish the Woori Legal

Report.

provide intensive training on ethical management:

We will continue to distribute “Ethical Com-

pliance Practices” and “100 Questions and

Answers on Ethical Management” to all

staff.

strengthen reviews of legal compliance at business units:

We will strengthen the prior legal reviews of

the business operations initiated by each

business unit, and, where weaknesses are

identified, we will conduct theme based

monitoring to preemptively prevent legal

risks from surfacing throughout the Bank.


2011 review

Despite a challenging business environ-

ment in 2011, Woori Bank’s overseas op-

erations now have total assets of USD 11.3

billion, loans of USD 5.2billion and operat-

ing revenue for the year of USD 310 million.

This can be attributed to diversifying our

funding sources, and reducing the level

of low-profit assets. Our delinquency rate

stood at 1.29% as of 2011. Some of our

achievements were as follows.

strengthening the overseas network

Woori Bank launched three offices in 2011:

in In August, we opened St. Petersburg

branch in Russia, followed by a sub branch

in ZhangJiaGang, China and the Krakatau-

POSCO office in Indonesia. Our operations

in Chennai, India and São Paolo, Brazil

became a branch and a subsidiary respec-

tively to serve those new markets for us,

and we plan to open a branch in Sydney,

Australia.

We also plan to add 14 more independent

network worldwide, center ing around

existing branches: four of the Dhaka sub

branch and one service center in Bangla-

desh, two branches and four sub branches

of our Chinese subsidiary, and three sub

branches in Indonesia.

Building relationships with overseas financial institutions

2011 was a year when liquidity risk manage-

ment triggered by the European financial cri-

sis topped the agenda. Woori Bank therefore

expanded its number of foreign currency bor-

rowers through active marketing and building

relationships with overseas financial institu-

tions, and also receiving sufficient foreign

currency funds that contributed to effective

liquidity management.

Building relationships with overseas financial

institutions is critical as we have considerably

increased the frequency and scale of foreign

currency and international financial transac-

tions such as foreign exchange, trade finance

and treasury. Woori Bank now has a Financial

global BusinessWoori Bank is located in 15 countries

as of December 2011, with an 56

overseas network consisting of

12 branches, 5 local subsidiaries

(40 branches belonging to subsidiaries),

and 4 representative offices.

We plan to expand local subsidiaries

and branches, especially in emerging

regions with high growth potentials,

so that we can become a truly

global and competitive bank.

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worldwide Branch network(56 Networks in 15 Nations)

* Number of Branches under Overseas Subsidiary: Woori Bank America(18), Woori Bank China(14), P.T Bank Woori Indonesia(5), Zao Woori Bank Russia(2) and Woori Global Markets Asia Ltd HK(1)

** The first local bank to establish overseas corporation in China (November 2007), and Russia (January 2008)

LANew York

Sao Paulo

London

Bahrain

Kuala Lumpur

Dubai

Dhaka

Singapore

Hanoi

Hong Kong

Ho Chi Minh

ShanghaiTokyo

Seoul

Gaeseong

Head Office

Overseas Branch (12)

Overseas Representative Office (4)

Overseas Subsidiary (5)

wooriamerica

Bank

Zao woori Bank

russia

wooriBankChina

woori global

markets asia ltd

hk

p.t Bank woori

indonesia

New Delhi

Institution(FI) Relationship Manager in every

region who is in charge of marketing and cre-

ating new business opportunities.

We have expanded our business through al-

liances and deepening ties with numerous

financial institutions; in particular, business al-

liances with major banks in the U.S.A. which

enabled us to expand our Letter of Credit

business in 2011.

In April 2011, Woori Bank was designated as

the Leading Counterparty Bank 2011 for Ko-

rea by The Asian Banker, a renowned inter-

national banking publication, reaffirming our

success in Foreign Exchange area.

It is especially notable in terms of Forex that

Woori Bank offers differentiated services.

First, as for joint purchase for money ex-

change, we offer cyber money exchange

marketplace where application for money ex-

change is possible over the Internet. So, once

a designated amount of money or a designat-

ed number of people are gathered, phased-

out preferential treatment for forex rate is

offered to the customers. Second, it is a web

EDI(electronic document interchange) service

that trading companies can utilize(corporate

Internet banking service) in regards to export/

import-related banking services without hav-

ing to visit the Bank.

Meanwhile, Woori Bank developed an exclu-

sive foreign currency fund settlement system

titled ‘Woori Bank Clearing System(WCS).

This system allow international offbound

settlement services of foreign currencies

especially in Korean Won and Chinese Yuan,

and furthermore provide services to transfer

money directly to overseas through business

alliances with many global banks worldwide.

As a result, we cover foreign exchange fund,

settlement and payment services promptly

and efficiently for corporate and retail custom-

ers, offering differentiated services befitting

the prestige of Woori Bank.

developing new products

New product development has strength-

ened our overseas branches. In Tokyo, we

launched the “Korean Won Time Deposit”

enabling payment/settlement in Korean Won

that is funded by Japanese Yen, as well as

introducing “International Cash Service”. In

2012, we will focus on strengthening product

marketing, expanding our portfolio of new

products and building the interest and non-

interest profit base. We are currently develop-

ing a system to offer online internet based

wire transfer services at home and abroad.

plans for 2012

We will expand our overseas network,

particularly through our subsidiaries in

India and Australia. We will then have an

overseas branch network on every conti-

nent except Africa, reaffirming our ability to

aspire and become a truely global bank.

awards

- The Leading Counterparty Bank, 2011

for Korea in Foreign Exchange

(The Asian Banker)


40 41 _ 2011 AN

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EMP

LoyE

E _S

ong,

Kyo

You

ng *

Jo

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iTLE

_As

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anag

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24

what impact does managing

on-site have on the quality of

banking services?

When our customers have trust in us, they don’t have to worry about their

banking and finances. Our expertise and our dedication to meeting customers

at their places of business, help us to ensure consistent quality in delivering

our products and services – and it gives our customers the happy feeling

that they can rely on us.

experiencing confidence

Businessreview

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43 Retail banking

45 Private banking

46 U-banking / Smart banking

47 SME banking

48 corporate banking

49 credit card

50 investment banking

51 Trading & derivatives

52 Retirement Pensions

53 Product development

wOORi bANk

review of 2011

As the global financial crisis continued,

Woori Bank’s retail banking served as a base

for our banking operations. The retail bank-

ing division laid the foundations for solid

growth by securing liquidity, improving profit-

ability and increasing asset soundness. The

division was able to up-sell high-value prod-

ucts to mid-tier customers to maximize op-

erating income, increase low-cost deposits

and preemptively manage its risks. Another

important factor was increased profits from

sales in cooperation with sister companies in

the Woori Financial Group.

The key achievements in 2011 were the

expansion of the retail base account and

increases in high-yield customers. By at-

tracting new customers, including those in

schools and hospitals, corporate executives,

public officials and new staff at large enter-

prises, the number of high-yield customers

rose sharply. As a result of initiating busi-

nesses such as payroll transfer, credit cards

and automatic transfer of fees, core deposits

increased by KRW 1.2 trillion.

achieving group synergy

The Bank integrated the Woori Bonus Family

Membership preferencial customers services

to include the customers of Woori Aviva Life

Insurance and Woori Financial. Woori Bank

formed a business alliance with its sister

company Woori Financial in co marketing

products or sharing customers database,

thereby promoting intra-Group synergy.

This helped to diversify the profit base of

both companies while distributing risk over

a wider asset base. To this end, the Bank

jointly developed and soldedly co-marketed

products targeting automobile purchasers

as well as low-credit borrowers that are ineli-

gible to apply for loans in the banking sector

and introduced such products to affiliates of

the Group.

extending our reach

As of December 2011, Woori Bank operates

942 branches in Korea to provide complete

financial services to approximately 17 mil-

lion customers. The Bank’s 7,000 ATMs

and cash dispensers extend the company’s

reach while raising customer satisfaction and

delivering ‘any time, anywhere’ banking con-

venience. About 60 branches will be opened

in 2012, with a focus on getting closer to the

customer. Woori Bank’s efforts to expand

its service delivery channels are key com-

ponents in its strategy of building customer

loyalty and increasing customers access to

the broadest range of financial services.

retailBankingWoori Bank is aiming to be the

no. 1 retail bank in Korea by

securing liquidity, improving

profitability, raising asset soundness

and managing risk. We will make

continuous effort to attract retail

customers, and thus to establish a

stable base for growth.

EXPERiENciNG cONfidENcE

94217 million customers

Providing services to approximately 17 million customers

by operating 942 branches as of December-end, 2011

plans for 2012

We aim to increase one million new custom-

ers to establish a stable base for growth

once the worst of the global financial crisis is

over. Specifically, we are targeting 400,000

new customers through the participation of

the Korean government and public agencies

in the Bank’s projects: a project in conjunc-

tion with the Ministry of Employment and

Labor to launch a bank-book that prevents

the seizure of unemployment allowances

by unauthorized persons; a project with the

Ministry of Health and Welfare to help with

medical fees to encourage a higher birth rate

in a country with a declining population; and

a project to launch a bank-book that prevent

the seizure of basic personal benefits given

to old-age pensioners. Other diverse prod-

ucts will be launched, including deposits,

loans, funds and pensions; these will suit

everyages from the teens to the sixties, and

we hope this will attract 200,000 customers.

Moreover, products customised according

to each relion will attract 100,000 customers

as well.

We also plan to expand operations in funds,

bancassurance, money exchange and trans-

fers, to raise non-interest income. Further-

more, we expected to dominate the market

in savings for housing subscriptions and

loans for subscribers by being re-selected

as a treasury bank for the National Housing

Fund, currently worth KRW 91 trillion.

key produCts

magic 7 installment savingsWe launched Magic 7 Installment Savings in

July 2011. This offers a higher interest rate

than average savings depending on credit card

usage, so that customers can build up large

funds and we can offer them a higher inter-

est rate. The product is a hybrid of installment

savings and credit card services, which is the

first of its kind in Korea. Within six months of

its launch, the number of accounts reached

271,000 and the contracted amount hit KRW

2.4 trillion. These figures far exceed those of

similar products from other banks.

woori happiness Bank-bookIn April 2011, we launched a bank-book to

prevent the seizure of basic social security

benefits. This first of a kind product shows the

Bank’s commitment to citizen-friendly banking,

especially by exempting the socially vulnerable

from money transfer fees and fees for using

ATMs. As a result, Woori Bank received an

Award from the Ministry of Health and Welfare

in 2011.

awards

- Ministers Award as being the best citizen

friendly banking

(Ministry of Health, and Welfare)

nationwide Branch network(942 Branches)

Kangwon(9)

Chungbuk (11)

Chungnam (21)

Gyeongbuk(20)

Gyeongnam(26)

Jeonnam(11)

Jeonbuk(10)

Jeju(3)

Gyeonggi(214)

Seoul(454)

Inchon(39)

Daejeon(21)

Daegu(25)

Ulsan(9)

Busan(56)

Gwangju(13)

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private Banking

review of 2011

Woori Bank has targeted private bank-

ing (PB) as a core growth engine for the

medium to long term business expansion.

We are building strategies that will enable

us to register the highest-ever increase of

total assets under management in Korea,

and of consulting services for PB custom-

ers.

“Two Chairs” is Woori Bank’s exclusive

private banking brand, symbolizing our

one-on-one approach to personalized

service for high-income individuals. Woori

Bank operates 6 private banking centers

and 370 PB branches, all of which are

staffed and equipped to deliver custom-

ized one-stop f inancia l ser v ices. We

provide asset management consulting

services and conduct seminars on real

estate for prospective local customers

through overseas branches and subsid-

iaries, thereby providing PB services on a

global basis. Our private banking advisory

centers, with more than twenty specialists

in real estate, tax and overseas invest-

ment, are located in every major Korean

city. Consulting services on donation/

inheritance, succession at family busi-

nesses and taxation are available, along

with total services for real estate invest-

ment, market outlook, overseas invest-

ments and studying abroad. Woori Bank’s

advisory centers are now established as

Korea’s No.1 financial consulting service

providers.

The Bank also operates the PB Academy,

with the industry’s best curriculum for

fostering specialists in comprehensive as-

set management. The Academy has had

126 graduates over the past four years:

117 from Woori Bank, and 9 from Kwangju

Bank and Kyongnam Bank. These spe-

cialists are now responsible for delivering

top-quality PB services at the branch

level throughout the nation.

Private Banking at Woori Bank received

for two straight years the ‘Korea Luxury

Brand Award’ and the ‘Asia PB Award’.

Even in the af termath of the f inancial

crisis, and despite challenges such as

low interest rates and plummeting stock

prices in 2011, PB is maintaining growth

of some 8%.

plans for 2012

In 2012, we plan to offer upgraded spe-

cial services and comprehensive asset

management services for PB customers.

This will include services for our individual

customers of preference, their families

and even their companies. To this end,

we will provide a comprehensive asset

management platform, spearheaded by

the Wealth Management (WM) team. We

will expand the number of PB centers to

improve our sales capabilities for High

Net Worth (HNW) customers, and expand

our consulting model, offering genuinely

customized comprehensive asset man-

agement services.

We wil l a lso extend customer service

beyond expectations. We plan to add a

‘concierge service’ to the “Two Chairs”

service, providing life care services in-

cluding medical check-ups, hotel res-

ervations, sports and arts performance

t ickets, go l f lessons and home care

services. Moreover, the PB Academy will

be upgraded and expanded to secure

the Bank’s competitive edge. Training

courses covering wealth management,

inter-personal skills, consulting skills and

an understanding of our HNW custom-

ers’ lifestyles will be separated, so that all

courses are customized and specialized

according to different needs.

‘PB services beyond wealth management’

is the essence of Woori Bank’s Private Bank-

ing. In 2012, we will continue to upgrade our

PB services, with a constant focus on the

customer.

awards

- Korea Luxury Brand Award

(The Korea Economic Daily),

two straight Years

- Asia PB Award

(The Asia Economy Daily),

two straight Years

With a commitment of providing

the highest standards of asset

management in private banking,

Woori Bank aims to go beyond

customer satisfaction, and deliver

life care services that is far more

than just private banking.


Approximately 8%Yearly average growth rate in private banking after the

2008 financial crisis

u-Banking (Ubiquitous Banking)

smart Banking

review of 2011

Woori Bank has maintained its dominant

position in Cash Management Services

(CMS); as at the end of 2011, the number

of CMS customers had reached 57,000.

We also have had the No.1 market share in

online products for many years, thanks to

continuous product innovation. In 2011, our

sales of online product reached KRW 5.6

trillion, a market share of 43.6%.

establishing a leading Banking portal

We enhanced customer convenience by

upgrading the Bank’s website in March

2011. We expanded channels for open

banking services, and also the channels

through which customers can access In-

ternet banking, regardless of PC operating

system or web browser.

Bolstering Competitiveness in e-banking

We upgraded the Cash Management

Service(CMS) and expanded the l ine-

up of e-banking products to attract new

corporate customers. In regards to SMEs,

we completed the set-up of our next-

generation banking systems, to offer stable

banking services. For example, Woori ERP’

provides SME specific account interlinking

a management service that is expected

to better increase prime SME users to our

bank.

plans for 2012

In 2012, our U-bank ing d iv is ion w i l l

strengthen its competitiveness in Internet

banking, smart banking, corporate banking

and WIN-CMS(Woori Internet Cash Man-

agement Service), to lead the smart bank-

ing market and secure high-yield customers

through digital banking.

key produCts

smart Banking

In May 2011, we increased the capabili-ties of ‘Woori Smart Banking’, a banking service via smart devices, by launching three apps: ‘One Touch for Retail Custom-ers’, ‘One Touch for Corporate Customers’ and ‘One Touch World’. The service was selected as Korea’s best banking app ser-vice – see below – thanks to its innovation. Woori Bank now provides many smart phone-based services, including not only account inquiries, money transfers and product subscriptions, but also services as diverse as indicating of the number of customers waiting for service and real es-tate inquiries.

woori erp

We help companies handle asset man-agement and account management at the same time through a financial Enter-prise Resource Planning (ERP) product that combines the functions of CMS and ERP.

awards

- The No.1 App in Korea based on Korea Smart App Index (Sookmyung Women’s University’s Web Development Research Institute and the Electronic Times)- The Grand Prize of the 6th Korea Internet Security Agency Award (Korea Internet Security Agency) - The Grand Prize in the banking sector of the 4th Korea Internet Communication Satisfaction Award(Korea Internet Communication Association)- The Top Winner’s Prize for open banking of the 11th Korea e-banking Service Award(The Korea Economic Daily)

As U-banking comes more and

more into the spotlight, thanks to

advancements in IT, Woori Bank

will continue to offer state-of-the-art

U-banking services, and will make

its services even better

for customers throughout 2012.

We will be a smarter bank,

catering to the changing needs

of our customers.

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kRw 5.6 trillion

43.6%Online product records of KRW 5.6 trillion and MS of

43.6% as of 2011-end, ranking first in market share in

online product sales for many years

sme Banking Despite difficulties at home and

abroad, Woori Bank achieved an

outstanding performance in the SME

banking sector. We did this by using

a workforce that specializes in SME

banking, and by attracting higher

numbers of SME customers with an

SME-friendly product line-up. We

will always offer new services and

products to our SMEs, in the belief

that they are the backbone of the

Korean economy.

review of 2011

Woori Bank’s Small & Medium Corporate

Banking Business Unit expands Woori

Bank’s portfolio of SME loans by creating an

SME-friendly product line-up that reflects our

SME customers’ diverse characteristics and

needs.

Despite difficulties at home and abroad, the

Small & Medium Corporate Banking Busi-

ness Unit increased operating revenue by

KRW 58.1 billion, to KRW 1,808.2 billion

in 2011 compared to KRW 1,750.1 billion

in 2010, thanks to an increase in customer

numbers of 49,000, and an increase in high-

yield customers rated BBB- and above of

16,000 year on year.

We enjoyed a successful year in liquidity

management, with an increase of KRW 5.5

trillion in the average balance of total depos-

its. In our loan segment, three loan products

recorded sales volume of KRW 1,217.2 bil-

lion, with total SME loans reaching approxi-

mately KRW 58 trillion by the end of 2011.

Of particular note, the ‘Woori Big Chance

Loan’, targeting high-yield customers with

ratings of BBB- and above, recorded a sales

volume of approximately KRW 1 trillion.

We also offered 125 cases of consulting

services, and their upgraded quality truly

satisfied our customers. These site-oriented

customized consulting services for SME

customers were the first to be offered in the

Korean banking sector since 2001.

We now seek to prioritize customer satis-

faction, driven by our specialist workforce.

Woori Bank’s outstanding achievements in

the SME banking market have been attribut-

able to the excellence of our SME Relation-

ship Managers (RM); we have specialized

849 SME RMs, and to-be specialized 662

SME RMs in training.

plans for 2012

The Small & Medium Corporate Banking

Business Unit will build on its existing mar-

kets, and explore new markets by focusing

on SME clusters, specifically the SOHO cus-

tomer market, and by conducting special-

ized customizable marketing. We also plan

to launch a loan product particularly aimed

at SMEs in industrial complexes, and also

a customized loan product that is to serve

franchise entrepreneurs.

We will strive to strengthen relationships with

existing customers, and increase the volume

of banking transactions by increasing the

loans for settlement, facilitating e-banking

services and upgrading preferential services

for high-yield customers. We will continue

special management of potential NPLs, and

the improvement of our asset portfolios.

Lastly, we will expand corporate consulting

by offering new consulting services like green

consulting, targeting companies involved in

environmental oriented green industries.

key produCts

woori Big Chance loan

‘Woori Big Chance Loan’, launched in 2011,

is a product with a significantly lower inter-

est rate, and targets corporate clients with

good credit ratings. There are also additional

benefits in terms of interest rates and vari-

ous discounted fees for our SME customers’

miscellaneous transactions.

awards

- Silver Tower Order of Industrial Service Merit of the 16th Best SME Banking Award (Small and Medium Business Administration)


49,000customers

16,000customers

Increases of 49,000 SME customers and increases of

16,000 high-yield customers of BBB- and above, year

on year

Corporate Banking

review of 2011

The Corporate Banking Division has a vi-

sion of becoming the No.1 banker in Korean

industry, and becoming a leading bank in

Asia over the medium to long-term. To this

end, the division has expanded its one-stop

services in cooperation with sister compa-

nies. Relationships with the largest corpo-

rate customers are strengthened through

the Woori Diamond Club, a meeting of the

heads of the country’s largest multination-

als. New product development continued

apace, with the launch of customized

products that cater to customer needs and

changing markets.

According to information compiled by the

FSS in 2011, Woori Bank was designated

as the main creditor bank for 15 of Korea’s

37 largest corporate groups, more than any

other bank, including world-leading compa-

nies such as Samsung, LG and POSCO.

Quantitative indicators were also strong.

Total assets amounted to KRW 29.3 trillion,

along with operating revenue of KRW 1 tril-

lion, net income of KRW 607.5 billion and

export/import volume of USD 218.8 billion.

The net interest margin was 2.09%. More-

over, we contributed to the national econo-

my through support for partner SMEs, while

also facilitating cooperation between large

enterprises and SMEs, and strengthen-

ing the Bank’s roles in Corporate Banking.

Strong performance was achieved in the

sales of the Partnership Loan for Large En-

terprises, the Partnership Guarantee Loan

for Large Enterprises, and the Settlement

Fund Loan for Partner Companies.

plans for 2012

In 2012, we plan to attract high-yield as-

sets and customers, maximize synergy by

offering multiple Woori Group products to

high-yield partner companies, and facilitate

the transactions of corporate executives.

We will implement customer-oriented site

management, helped by our outstanding

business capabilities and our strong rela-

tionships within Corporate Banking.

key produCts

B2B loan / B2B plus loan

These are corporate loan products that can

be provided in installment loans with ac-

counts receivable being used as collateral

without the need for additional collateral or

the guarantee of a partner company. This is

designed to facilitate companies’ e-settle-

ments.

partnership loan for large enter-prises / partnership guarantee loan for large enterprises / settlement fund loan for partner Companies

These are corporate loan products offered

at a low interest rate under a business

agreement between the Bank and a large

company, to encourage cooperation be-

tween large enterprises and SMEs.

woori Corporate factoring

This is a corporate loan product whereby

the Bank purchases sellers’ accounts re-

ceivable on a no recourse basis. This is in

response to changing market requirements

following the mandatory adoption of the

IFRS, and this creates a new source of rela-

tively low-risk, high-reward profits.

Woori Bank continues to support

its corporate clients, encouraging

partnership with large enterprises

and SMEs on providing

differentiated loan products, and

developing alongside Corporate

customers. We will continue to do

our best to make sure that we fulfill

our active role as a true partner for

Corporates and others.

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15Main creditor bank for 15 of Korea’s 37 largest corporate

groups, including world-leading companies such as Sam-

sung, LG and POSCO

kRw 29.3 trillion kRw 1 trillion

Total assets and operating income in 2011 in corporate

banking

CreditCardWoori Bank has a comprehensive

credit card business, thus broadening

the customer base and increasing

profitability. We will continue

to offer differentiated customer

management and marketing.

1) The market for card settlement systems or the set-up of settlement infrastructure for public projects

commissioned or conducted by public agencies.

review of 2011

Since Woori Card was merged into Woori

Bank to form the Credit Card Division in

2007, it has succeeded in building asset

soundness thanks to conservative and

stable business operations, especially in the

aftermath of the global financial crisis and

the subsequent market slowdown.

In 2011, the Bank focused on maintaining

asset soundness and improving business

operations, while actively taking part in the

public bid market1) and seeking to attract

more customers. We rationalized the card

review standard and optimized the limits. We

also broadened the customer base by ex-

panding the market for check cards. Syner-

gies were created with increases in deposits

and card sales through ‘MAGIC 7 Installment

Savings’, a product that offers additional in-

terest for increases in card usage.

We launched the ‘Woori Children-Love

Card’ as the operator of the government’s

nursery subsidy program, and also launched

the ‘Woori V Check Green Card’ providing

economic benefits for green living and con-

sumption. Another new product was ‘Woori

V Card Oil-100’, which offered oil price dis-

counts.

Services to enable automatic transfers for

telecommunication and transportation fees

led to higher customer retention rates. We

also classified the criteria for our VIP pro-

gram (V Club) and provided services accord-

ingly, focusing on attracting and retaining

high-yield customers. We also focused on

active responses to market changes and the

need for customer convenience by providing

credit card inquiry and transaction services

through smart phones.

As of December 31st, 2011, Woori Card’s

market share was sixth in the country. The

annual sales volume was KRW 39.4 trillion,

up 10.0% year-on-year, while the number

of credit cardholders (including check card-

holders) increased 6.5%, to 11.7 million.

plans for 2012

In 2012, we will focus on increasing the num-

ber of high-yield customers, expanding our

participation in the public bid market and es-

tablishing the infrastructure for mobile cards.

New systems will be out in place to offer a

smart business environment within branches.

We will also focus on enhancing our competi-

tiveness by maximizing the operating efficiency

of each division, enhancing profit & loss man-

agement, and strengthening the analytical skills

for membership data.

We will do our best to raise membership and

sales volumes through strong customer man-

agement and marketing. We will also strive to

increase high-yield assets through the reten-

tion of high-yield customers, the optimization

of risk management, the development of finan-

cial hybrid products with more robust financial

functions, the exploration of customizeable

markets, the enhancement of our brand image,

and the utilization of a new card system.

key produCts

discount product ‘new woori v Card’

This is a new version of the Woori V Card

launched in May 2007 as a standard dis-

count card, encompassing benefits at gas

stations, shopping malls, restaurants, movie

theaters and provide other financial benefits.

point product ‘woori v point Card’

0.2% of the total spent on this card is accu-

mulated, which is accumulated additionally

to the amount used for Internet shopping

and in gas stations depending on custom-

ers’ taste.

government nursery subsidy Card ‘woori Children-love Card’

This card provides discounts for nursery

fees, shopping, transportation, culture and

educational content, in conjunction with the

government’s nursery subsidies.


11.7 million customers,

UP 6.5%No. of Woori Bank’s credit card (including check card)

customers and the year-on-year growth rate

kRw 39.4 trillion,

UP10%Woori Bank’s 2011 annual sales reached KRW 39.4

trillion and the year-on-year growth rate

investment Banking

review of 2011

The credit crunch, stemming from the on-

going global financial crisis, worsened again

in 2011 due to the European financial crisis.

However we have sold and written off non-

performing assets in construction and ship-

building, and have instead focused on high

end customers for providing term loans and

M&A financing.

We also built asset soundness by disposing

of low-yield assets and assets at risk of de-

fault. We improved the profitability of assets

by increasing the volume of Won denomi-

nated loans, especially for commercially vi-

able projects.

The IB Division holds assets worth KRW

13.3 trillion as of end-2011(including off-

balance sheet items), consisting of loans of

KRW 6.1 trillion, securities of KRW 2.0 tril-

lion and off-balance sheet items of KRW 4.9

trillion. Recently, invested high yield loans

and securities have been recovered which

enabled us to receive sizeable amount of

dividend and profit on sale.

plans for 2012

The domestic IB market in 2012 is expected

to suffer from the ongoing European fi-

nancial crisis, slowing Chinese economic

growth, and export reductions, so on the

whole, improvement in the economic and

financial environment is not likely. There will

therefore be more disposal of assets under

corporate restructuring to liquidate non-

core businesses, increased corporate M&A

financing, and an overall focus on new busi-

nesses to diversify our corporate business

operations for medium to long-term growth.

A positive sign is that there will be more

demand in social overhead capital(SOC) as

the government makes increasing attempts

to build social infrastructure facilities. None-

theless, the outlook for real estate devel-

opment projects including publicly-placed

large real estate PF is yet to recover.

In 2012, Woori Bank will expand IB-related

f inancing for corporate clients. We will

continue financial arrangements for tra-

ditional SOC projects such as BTO and

BTL by marketing on corporate clients and

strengthening our networks. We will also

increase fee income by arranging and par-

ticipating in M&A financing.

We also plan to secure new income sources

in the medium to long-term by tapping into

power generation and renewable energy

markets. The IB Division will position itself

as Korea’s leading investment bank through

the strategic alignment of the two busi-

nesses, corporate banking and investment

banking.

Woori Bank succeeded in Investment

Banking (IB) by selectively initiating

business while considering overall

profitability, raising asset soundness

and improving the profitability

of assets currently held. We will

continuously expand IB services for

corporate clients, to become

Korea’s leading operator of the

Commercial & Investment Banking

(CIB) model.

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kRw13.3 trillion

Total assets as of 2011-end held by the IB head office

of Woori Bank

trading & derivativesOur bank became the first Korean

bank to issue subordinated bonds in

foreign currencies and demonstrated

investor’s confidence despite

European crisis and uncertain

market conditions. We will continue

to pursue sustainable growth in

trading & derivatives by broadening

the customer base while diversifying

our product range.

review of 2011

Woori Bank maintains a dominant market

share in trading & derivatives in all fields

related to the financial markets, such as

foreign exchange dealing, derivatives, invest-

ment in securities and short-term financing.

We are particularly competitive in derivatives

transactions like forwards, swaps and op-

tions based on diverse underlying assets (in-

terest rates, foreign exchange, equities and

commodities) and maintain a solid presence

as a market maker.

The Financial Market Business Unit in-

creased financing through foreign currency

derivatives such as Samurai Bond to take

preemptive measures against spillover ef-

fect from the Euro zone crisis. We became

the first Korean bank to issue subordinated

bonds in foreign currencies and gain inves-

tor’s confidence in its strong capital sound-

ness and credit ratings. We responded ac-

tively to the drop of U.S.A. credit ratings by

securing liquidity in foreign currencies. We

were thus able to meet the FSS’s prescribed

liquidity ratio and mid to long-term financing

ratio for foreign currencies. We also built on

our dominance in the derivatives market by

strengthening derivatives trading based on

predictions of market variables in policies,

and supply and demand forecasts. Woori

Bank has developed a fully diversified port-

folio of foreign currency derivatives, includ-

ing the Mexican Peso, South African Rand,

Polish Zloty, Russian Ruble and Chinese

Yuan. One important breakthrough was the

development of products offering 24-hour

hedging of commodity price risk, now avail-

able through the Bank’s Night Desk for com-

modity derivatives. We also offer services

to cover overnight exchange rate risks by

opening our London Desk when Korean for-

eign exchange desk closes.

plans for 2012

The business goal of the Financial Market

Business Unit is to achieve sustainable growth

through risk management, and to do so de-

spite the economic uncertainties at home and

abroad. To achieve this goal, we will implement

the following strategies:

managing liquidity

We will optimize liquidity management by

controlling our trading positions and maintain-

ing the loan-to-deposit ratio below 100% of

the average monthly balance. We will reduce

the concentration of USD in our portfolio

by diversifying funding into currencies such

as Thai Baht, Malaysian Ringgit and Swiss

Francs. Moreover, we plan to take preemptive

measures in responding to financial markets

and adapt to regulatory changes in various

ways: reviewing fund variation factors and

setting responses on a daily, weekly and

monthly basis, monitoring regulatory changes

such as amendments to the Regulation on

the Supervision of Banking Business, manag-

ing the liquidity ratio and continuously seeking

to reduce any fund imbalances.

expanding the Base of high-yield Customers

We plan to broaden our base of high-yield

customers by attracting new derivatives cus-

tomers, increasing the transaction volume

with institutional investors and also enhancing

transactions with existing high-yield custom-

ers. We will more fully utilize internal sales

channels such as subsidiaries, overseas

branches and other business units that may

lead to cross-sales marketing while minimize

expected customer defections due to mer-

chant banking licence expiration.

strengthening risk management

We will reduce operational risks by continu-

ously improving our IT systems, and by re-

ducing counterparty credit and payment risks

through the liquidation of over-the-counter

derivatives. Moreover, all our product struc-

tures will take risk into account in developing

new product, and in minimizing market risk

through preemptive risk management.


retirement pensions

review of 2011

Retirement pension products are sold us-

ing a structure whereby subscribers can

accumulate retirement annuities separately

from their employer. The same sales mech-

anisms are used by all retirement pension

companies.

The Bank launched the Happy Life Bank-

book for retirement pension subscribers, a

first product of its kind in Korea. The prod-

uct enables subscribers to conveniently

access their retirement annuities as they

accumulate their pension, which is the key

concern of most subscribers, and they

can check their bank-book to see how the

funds are managed. The Bank has also es-

tablished the Retirement Pension Research

Institute, in which the Bank coordinates its

wide-ranging advisory services on pension

asset management, and offers related con-

sulting services. In addition, in compliance

with the government’s revision of the Work-

ers’ Retirement Wage Guarantee Act, we

upgraded our pension asset management

systems. We also offer good customer ser-

vice, and make sure that all product sales

are appropriate, by providing updates and

notifications to subscribers through the

Bank’s Happy Call System.

In 2011, Woori Bank’s pension deposits

climbed KRW 1.86 trillion, to KRW 4.33 tril-

lion. The number of joined companies en-

joyed impressive annual growth of 44.3%,

rising to 17,754. Individual subscribers were

attracted in even greater numbers, increas-

ing 57.3% or 243,861, to reach 669,487 at

year-end 2011.

plans for 2012

The retirement pensions market used to be

quite small, due to a lack of awareness among

both employers and employees. However,

since the adoption of the retirement pension

system in December 2005, the market has

doubled every year. Woori Bank is striving to

secure a stable customer and profit for a long

term by taking an early lead in the retirement

pensions market.

We believe that, because retirement pensions

are the foundation for post-retirement life, it is

critical for us to staff our team with employees

who are true experts in this area. Our goal

is to become No.1 in the retirement pension

market by building our strengths in corporate

banking, creating a well-organized marketing

unit, diversifying the product range and mak-

ing sure all funds are professionally managed.

key produCts

Customer-designated maturity time deposit, and woori retirement pension loan

Woori Bank has a portfolio of 29 perfor-

mance-based dividend products from 13

management companies, including time

deposits with various maturity structures, a

first-of-a-kind inflation-indexed bond, and

an equity-indexed fund. Of particular note,

we developed and manage a ‘Customer-

designated Maturity Time Deposit’ which

enables the customer to designate their

own maturity, depending on their financial

schedule, and the ‘Woori Retirement Pen-

sion Loan’ targeting corporate staff sub-

scribing to a retirement pension. We are

developing new pension products for the

‘baby boomer’ generation who is now near-

ing retirement.

Woori Bank is building a strong

position in the retirement pensions

market through a well-equipped

marketing unit, quality products

and specialist operations. We are

proud to offer customers the best

in retirement pensions, which

increasingly serve as the cornerstone

for post-retirement life.

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17,754 UP 44.3%17,754 companies subscribed to retirement pension as of

2011-end, growth rate of companies subscribed to retire-

ment pension is 44.3% year-on-year

kRw 4.3 trillion

Amount of pension deposits as of 2011-end

productdevelopment

The Division was formed to maximize ef-

ficiency and synergies by integrating product

development teams that used to be scattered

in each business division under the Bank.

The division was organized to encourage a

competitive product development under one

integrated unit.’ It is the first-of-its-kind unique

and creative unit in the Korean banking his-

tory, playing a leading role in the banking sec-

tor.

Moreover, departments on retail products,

housing products, corporate products, SME

products, Forex products, card products,

Internet, smart banking products were inte-

grated into the Division on July 7, 2011. The

fund product operation was added in Decem-

ber, which is an asset management product.

Accordingly, we strive to develop the best-in-

class products in deposits, asset manage-

ment, loans, Forex and financial services

catering to various needs of PB customers,

retail customers, large enterprise clients, SME

clients, institutional clients and Internet users.

Of particular note, products in the Division

amounted to 150 as of December-end, 2011,

including 39 corporate products (27 for loans

and 12 for deposits), 8 housing product, 52

retail products (36 for deposits and 16 for

loans), and 46 card products. Most of the

products are aligned with mobile devices and

the Internet. Fund products such as asset

management products amount to 140 in total.

review of 2011

Woori Bank’s Product Development Divi-

sion launched on July 7, 2011, and since

then introduced 18 retail products, 4 hous-

ing products, 1 corporate product and 6

card products, totaling 28 for a short term

of six months. Of particular note, the Time

Deposit Marking Korea’s 66th Year of Inde-

pendence from Japan achieved the volume

of KRW 644.6 billion as of December-end,

while WE Dream Loan, a product for SMEs

amounted to KRW 701.1 billion. The Bank

also launched the iTouch Housing Lease-

hold Loan to lead the Internet and smart

banking markets.

plans for 2012

Woori Bank’s Product Development Di-

vision have its 2012 slogan to ‘develop

the market-leading innovative products,’

promptly, timely and creatively to aim for the

new high-yield customers and to provide

convenient financial solutions to our cus-

tomers.

The Division will play a leading role in ex-

ploring the new market by not only devel-

oping the Bank’s new exclusive products

but also wil l expand its boundaries to

derivatives-linked structured deposit & loan

products, hybrid products of deposit & loan

and card products, other products aligned

with new banking services, and ELD-based

pension products where index-linked de-

rivative transactions are added.

Woori Bank’s Product Development

Division consists of not only product

development specialists but also

those specialized in research, data

analysis, and marketing thereby

strengthening the Bank’s competency

in product R&D. Through surveys

aligned with outside institutions, the

Bank enables the in-house optimal

product development for customers

independently without outsourcing,

based on the customers specific

database and consideration of the

market condition.


150 products are available as of 2011-end

150

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Having the best human resources means that we have the confidence in our

people to allow them to take responsibility for their business actions, discover

new business opportunities and apply these to their work with customers.

When people are inspired by what they do, quality service follows naturally,

and so does customer happiness.

how can having the best people boost our customers’ happiness?

sustaining confidence

EMP

LoyE

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im, B

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Jin

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Assi

stan

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ager

, Pub

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elat

ions

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32

30 Woori bank

sustainabilityreview

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57 creating financial Opportunities (Microcredit)

60 inspiring Our People

62 Sharing Heart

Woori Bank offers socially responsible banking services by supporting those who might be struggling financially, the socially vulnerable and people who might not have access to banking services. We also offer microcredit services that have helped a whole new stratum of entrepreneurs who did not previously have access to funding.

Woori Bank’s Miso-credit is a Korean-style Microcredit that helps those who cannot access institutional financial funds, and

also helps companies in starting up a business or managing their funds. Woori Bank led the founding of the Woori Miso

Financial Foundation with contributions from affiliates of Woori Financial Group that contributed KRW 10 billion a year for five

years. The foundation has established channels in 8 regions nationwide, to support small-scale entrepreneurs in starting up

a business or managing their finances. The purpose of the Foundation is to support those with low income and limited credit

to be financially self-sufficient, thus enhancing the stability and comfort of their lives.

To ensure fairness in its operations, the Foundation’s outside executive directors consist of a priest from the Council of

Catholic Social Welfare, a professor at the Sociology and Welfare Department of Soongsil University, and a director of a

social welfare center. The Foundation’s 8 branches have 27 staff in total, to ensure the best support for those in need.

Creating financial opportunities (microcredit)

SUSTAiNiNG cONfidENcE

925 cases,

KRW17.4 billion The number of microcredit services extended as of

2011-end amounting to 925 cases, and the amount

provided as microcredit is 17.4 billion

RevieW of 2011

In 2011, our goal was to serve as a role model in the microcredit sector, and to increase the number of recipients of

microcredit. As a result of reaching out to those in need and developing products which cater to them, we were proud to

process 925 cases worth KRW 17.4 billion in 2011, bringing the overall totals to 1,413 cases worth KRW 22.2 billion.

In particular, we launched products tailored for single-parent families, along with customized products for small-scale

entrepreneurs involved in the delivery business. We visit the people who need our services, to make sure they get the most

useful product, in the most effective way. In the delivery business, our new microcredit product aims to resolve a shortage

of delivery vehicles and other logistical challenges while giving support through collaboration with the Ministry of Land,

Transport and Maritime Affairs, and thereby guarantee a stable business environment for small-scale delivery entrepreneurs.

As part of our microcredit services, we operate the Woori Microcredit Volunteer Team. This team not only extends financial

support but also gives practical advice to recipients in how to be financially independent. The team is comprised of staff

from Woori Bank and Woori Financial, as well as specialists including lawyers, tax attorneys, accountants and management

consultants, working alongside ordinary citizens, and college students. Their diverse professional knowledge and consulting

services on business start-up, management, marketing, law, taxation and accounting for recipients of our microcredit

services enable them be fully self-sufficient.

In 2011, we launched a sub-branch within Jungnang-gu Office and Yong-in branch, so that we can expand our microcredit

services.

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plans for 2012

The goal for 2012 is to expand the support that Woori Bank may give to those in need through microcredit. So that

microcredit services can be available on-site, we will support merchants in traditional markets through an agreement with

a traditional market merchant association, and expand the scope of recipients to include entrepreneurs involved in making

keys and traditional rice cakes. We are also opening two more branches to increase access for customers.

We will examine and share case studies of business success among our loan recipients, so that other recipients gain

confidence in conducting their own business and learn from the best practices.

Key PRoductS

Business start-up loan

A loan for those preparing to

start a new business.

working Capital loan

A loan for individual entrepreneurs

already doing business

at an established site.

single parent and multi-cultural family support fund

We will increase the level of funding

available for members of society who

sometimes struggle to gain access to

financing, such as single-parent and

multi-cultural families.


As a company that cherishes its people, Woori Bank does its utmost to create a great workplace, so that staff can work happily, and customers benefit from that happiness. In 2011, we strived to achieve labor-management harmony, and increased welfare benefits for all. We will continue to focus on our people in 2012.

RevieW of 2011

improving employee welfare Benefits

In 2011, Woori Bank got very positive feedback from staffs by launching and improving diverse programs for staff welfare

benefits and internal communication. These programs were as follows:

a family weekend journey : This program, launched in July 2011, mainly focuses on the families of our

staff. The purpose of these outdoor programs is to encourage love within families, and to recharge body and

mind. Held on the fourth Saturday every month, participants had wetland experience in July, went grape picking

in August, and chestnut picking in September. The program was amongst the Bank’s top ten news highlights for

2011 as a result of the quality of feedback it got.

encouraging a happy monday : The ‘Happy Monday’ program aims to create a corporate culture where

all staff is eager for Mondays to come. Every Monday, a lucky draw is made and the selected branches will get

plenty of snacks delivered to them. There are also other elements of ‘Happy Monday’ that put smiles on the

faces of staff members, and it seems to have succeeded; the program was a huge success, and over 30,000

staff participated.

inspiring our people

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heart-to-heart dialogue with new staff : ‘Heart-to-heart dialogue with new staff’ is a program to take

notes of complaints and feedback from new staff. Because the program is only open to new hires, this enables

us to listen closely to what they say. and their words are heard at a more honest and deeper level – and, because

Woori Bank has branches nationwide, the program visits new staff at their site. These efforts have therefore

gained a huge positive feedback.

increasing the number of medical Check-up Centers : The number of medical centers available for

the staff annual check-up increased from 41 to 46. The number of items available for the medical check-up also

increased, which greatly enhanced the overall level of satisfaction.

free rental of a wedding hall : The wedding hall at HQ is rented out for free to staff at weekends. It offers

a large hall and luxurious decoration, and has received great feedback from staff – especially from brides! The

luxurious bride’s room and pyebaek room(post-wedding ceremony ritual) would make any event very special,

even compared to the most luxurious hotel wedding halls. The free rental saves hugely on wedding costs for

staff, and imbues a sense of community at the Bank.

harmonious laBor-management Harmonious labor-management is important in making a good workplace. We forged a strong labor-management consensus

by applying the amended Labor-Management Act, such as introducing a time-off system for the executives of the labor

union, and a preferential scheme for full-time unionists.

We also reached agreements on industry-specific bargaining and industry-specific wage negotiations. As a representative of

the Korean banking sector, we fulfilled our role in raising wages by 4.1%, and restoring the salaries of new employees.

Moreover, we have innovatively enhanced labor management issues to a long term base and increased our competiveness. An example is the March 2011, MOU implemating agreement of labor management regarding enhanced treatment of employees. This was measured in a quarterly base, but recently was amended to a yearly base.

plans for 2012

In 2012, Woori Bank will continue the open dialogue and promote harmony between labor and management, to create the best possible working environment. Professional seminars on labor-management relations will be held officially so that participants can foster expertise in advance, and prevent unnecessary labor-management disputes. Lastly, we will form a joint labor-management task force team to improve HR and training systems.


Woori Bank is a warm-hearted bank that connects with the society furthering its scope of support. The Bank makes social contributions across different sectors – social welfare, environmental protection, education, culture, arts and expand its support to rural & fishing villages. We focus on more than one-time events: we hope to serve as a bright light for those in need in every corner of the society through consistent acts of love and kindness, carried out by staff and their families.

Woori Bank has a 113-year history working alongside the nation both in times of joy and sadness. Our social contribution activities are aligned with the Bank’s goal, to implement ‘Shared Hope and Growing Love’.

Woori Bank’s staff in 1,000 branches around the nation engages in volunteering activities that help the needy. For example, we have a ‘One Company, One Village’ sisterhood program that helps rural & fishing villages. We also support the social contribution programs of non-profit organizations, including the Korean Red Cross, the Good Neighbors and the Children’s Fund.

RevieW of 2011

In 2011, Woori Bank’s social contribution programs spread our love and helped ease burdens across Korea. In 2012, Woori Bank will be the No.1 bank in the most important category - sharing its heart and taking care of those in need.

woori happiness society program : Our ‘Woori Happiness Society Program’ sponsors the socially vulnerable in the community. This volunteer program is closely aligned with the community on a regular basis, forging sisterhood relationships with social welfare organizations and local childcare centers near our HQ and branches nationwide. In August 2011, we invited 500 children from small schools for the needy to a summer camp where we held an event with a famous Korean comedian and presented scholarships. In November 2011, we hosted a kimchi-preparing event and gave gifts to multi-cultural families, the elderly living alone, and families that of children living with their grandparents.

sharing heart

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volunteering for the disabled : Woori Bank holds annual events annually where the disabled and the able-bodied can meet to play sports and have fun together. On November 7th, 2011, Woori Bank’s volunteer group, including CEO, took part in a marathon alongside with the visually impaired; staff members formed teams with disabled participants and their success as a team broke down walls and forged social integration. Building on these successes, we will continue to hold the 4th Sports Festival and Marathon for the Disabled in 2012.

volunteering with rural & fishing villages, and protecting Cultural properties : Our ‘One Company, One Village’ sponsorship program encourages active exchange and shared growth between urban and rural regions. The program marked its 8th anniversary in April 2012 by supporting a village in Korea’s Gyeonggi Province. We offer supports such as volunteering during harvests, markets for direct sales of agricultural products, rural village experiences for staff and customers, village refurbishment and income raising in rural villages. We also forged the ‘One Company’ One Fishing Village’ program with Mongsan-ri in South Chungcheong Province, and the ‘One Company’ One Mountain’ program with Namsan Mountain in Seoul for environmental preservation and natural protection.As part of our heritage, we have signed a contract to protect Hongyuneung, under our ‘One Company’ One Cultural Property’ program. Hongyuneung is a UNESCO-designated World Cultural Heritage site, and one of Korea’s most important cultural properties. It is the tomb of Korea’s Emperor Gojong, and also of King Sunjong, who paved the way for Daehan Cheonil Bank, the forerunner of Woori Bank, to be established, sponsoring it with imperial funds so that a national bank could take root. We regularly conduct activities to protect Hongyuneung, and include a tribute ceremony as part of new staff training, to enhance their appreciation of company history.

woori art Contest : The Woori Art Contest is Korea’s top art contest for artistically-inclined children. It celebrated its 17th anniversary in 2011, when a total of 45,000 elementary, middle and high school students and kindergartners took part; we also held an art event for children from Southeast Asia, who sometimes lacks opportunities for such events in Korea. We are also active in promoting educational and social programs such as offerings economics classes to children and classes of basic money care for North Korean defectors. The children’s class includes a field trip to Woori Bank Museum and opening a new bank-book, so that the children can enjoy a hands-on money-based experience.

multicultural festivals for foreigners : We took part in and supported various events for foreigners to raise the Bank’s image as a global leading bank: ‘2011 Korea Grand Sale’, ‘Easter Festival for Foreign Workers’, ‘2011 Information Fair’, ‘Mongolia Naadam Festival’ and ‘Mr. & Ms. Filipino Culture Thanksgiving Festival.’ As such, we strived to do the best in social responsibilities as a bank specialized in Forex.

increasing the Culture of donations : Our staff is the driving force for increasing Woori Bank’s culture of donation. They voluntarily give part of their monthly wages to the Woori Love Fund and the Woori Children Love Fund. We also offer ‘Woori Love e-Sharing’, whereby customers can donate by transferring money via Internet banking, encouraging a culture of small-scale donations. We operate the ‘Woori Love e-Sharing’, a point-based donation program that donates some of the points accumulated when using credit cards. We also support Myeonghwiwon, a social welfare corporation.


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65 Management’s discussion and Analysis

69 independent Auditor’s Report

158 Organization

160 Global Networks

wOORi bANk

FINANCIAL REVIEW

This Management Discussion and Analysis (MD&A) and accompanying financial statements comply with Korean financial reporting standards

(“K-IFRS”, consolidated financial statements). The term ‘the Bank’, as used in this MD&A, refers to Woori Bank, unless otherwise indicated.

Summary of Management Performance

2011 was a year of continued challenges, with uncertainties from the European financial crisis, a downgrade in USA credit rating, and concerns about

inflation at home. Despite these setbacks, the Bank’s 2011 operating income was KRW 2,683 billion, up 79.1% year-on-year, with net income of KRW

2,069 billion, up 63.9%. This was attributable to continuous efforts to improve profitability, income diversification, including increased fee and dividend

income, improving asset soundness, and increases in interest income.

CHANGE

(Unit: KRW Billion) 2011 2010 AMOUNT %

Operating income 2,683 1,498 1,185 79.1

Net interest income 5,726 5,027 699 13.9

Net fee income 508 494 14 2.8

Dividend income 123 119 4 3.4

Gain (loss) on financial assets at FVTPL 107 15 92 613.3

Gain (loss) on AFS 281 235 46 19.6

financial assets 1,017 979 38 3.9

Impairment on credit loss (1,817) (2,496) 679 (27.2)

SG&A Expense (2,553) (2,264) (289) 12.8

Other operating income (expense) (428) (376) (52) 13.8

Gain (loss) on investment assets of related companies (24) 39 (63) (161.5)

Income before income tax 2,659 1,537 1,122 73.0

Income tax expense 590 275 315 114.5

Net income 2,069 1,262 807 63.9

Profitability

Driven by higher interest income, the Return on Assets for 2011 was 0.59%. The Bank watches this indicator very closely, and was pleased with its

upward momentum. The Net Interest Margin also rose, to 2.46%; it has been rising since 2009. The SG&A expense ratio stood at 39.7%, continuing

to trend satisfactorily downwards.

(Unit:%) 2011 2010 CHANGE (%p)

Return on Assets 0.59 0.49 0.10

Return on Equity 7.93 7.98 (0.05)

Net Interest Margin 2.46 2.22 0.24

SG&A Expense Ratio 39.7 40.8 (1.07)

FOR THE YEARS ENDED DECEMBER 31, 2011 AND 2010

Management’s Discussion And Analysis

WOORI BANK

Interest Income and Expense

The Bank’s 2011 net interest income was KRW 5,726 billion, up KRW 699 billion or 13.9% over the previous year. This was due to interest income rising

by KRW 678 billion, with interest on loans increasing by KRW 561 billion, and a drop in interest expenses of KRW 20 billion, and interest on debentures

issued decreasing by KRW 244 billion.

CHANGE


Interest income 11,659 10,981 678 6.2

Interest on deposits 47 12 35 291.7

Interest on financial assets 664 611 53 8.7

Interest on loans 10,247 9,686 561 5.8

Other interest income 701 672 29 4.3

Interest expense 5,934 5,954 (20) (0.3)

Interest on depository liabilities 4,477 4,251 226 5.3

Interest on borrowings 344 340 4 1.2

Interest on debentures issued 1,015 1,259 (244) (19.4)

Other interest expense 98 104 (6) (5.8)

Net interest income 5,726 5,027 699 13.9

Gain (loss) on financial assets at FVTPL

The Bank’s gain on financial assets at FVTPL in 2011 was KRW 107 billion, up KRW 92 billion over the previous year. The loss on the valuation and

disposal of securities was KRW 55 billion, while gains on derivatives and other financial assets were KRW 127 billion and KRW 35 billion, respectively.

CHANGE


Gain (loss) on securities (55) 129 (184) (142.6)

Gain (loss) on derivatives 127 (84) 211 (251.2)

Gain (loss) on other financial products 35 (30) 65 (216.7)

Total 107 15 92 613.3

Gain (loss) on AFS financial assets

Gains on the disposal of securities outran impairment losses, so the Bank’s gains on AFS financial assets closed at KRW 1,017 billion, up KRW 38 billion

year-on-year.

CHANGE


Gain (loss) on disposal of securities 1,200 980 220 22.4

Reversal of impairment loss on securities (impairment loss) (183) (2) (181) 9,050.0

Total 1,017 979 38 3.9



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FINANCIAL REVIEW

Impairment losses on loans and other credit

The Bank has strived to spearhead a culture which raises accountability for NPLs, and prevents defaults, to improve overall asset soundness. In 2011,

impairment losses totaled KRW 1,817 billion, down significantly, by 27.2% year-on-year. This is a result of the increase in impairment losses on payment

guarantees of KRW 100 billion being considerably more than balanced by a drop in impairment losses on loans of KRW 779 billion.

CHANGE


Impairment losses on loans 1,711 2,490 (779) (31.3)

Impairment losses on payment guarantees and allowances

for undrawn commitments106 6 100 1,666.7

Total 1,817 2,496 (679) (27.2)

SG&A Expenses

The Bank’s SG&A expenses in 2011 went up 12.8% due to higher expenses across the board, with wages in particular up 21.1%. Although the absolute

amount increased, however, the SG&A expense ratio fell, thanks to the Bank’s cost saving efforts.

CHANGE


Salaries 1,190 983 207 21.1

Short-term salaries 1,044 870 174 20.0

Retirement benefits and termination benefits 146 113 33 29.2

Depreciation 127 126 1 0.8

SG&A expenses 1,236 1,155 81 7.0

Welfare benefits 260 240 20 8.3

Compensation of actual expenses 61 62 (1) (1.6)

Rent 187 179 8 4.5

Computer & software 245 246 (1) (0.4)

Other SG&A expenses 483 428 55 12.9

Total 2,553 2,264 289 12.8

Balance Sheet

Total assets at year end were 6.1% higher at KRW 242,472 billion, up KRW 13,917 billion, making Woori Bank the second-largest domestic bank as

measured by total assets. Loans and bonds receivable increased by KRW 14,278 billion year-on-year, and most asset items increased over the year,

although financial assets dropped by KRW 2,245 billion.

Total liabilities amounted to KRW 224,346 billion, up 6.3%, or KRW 13,278 billion. Depository liabilities and borrowings went up by KRW 6,778 billion

and KRW 192 billion respectively, but bonds issued dropped by KRW 381 billion.

Shareholders’ equity at year-end was KRW 18,126 billion, up 3.7% year-on-year.

WOORI BANK

CHANGE


Assets 242,472 228,555 13,917 6.1

Cash and cash equivalents 5,389 3,886 1,503 38.7

Financial assets 41,389 43,634 (2,245) (5.1)

Loans and bonds receivable 191,909 177,631 14,278 8.0

Investment assets of related companies 376 306 70 22.9

Tangible and other assets 3,409 3,098 311 10.0

Liabilities 224,346 211,068 13,278 6.3

Depository liabilities 164,092 157,314 6,778 4.3

Borrowings 19,175 18,983 192 1.0

Bonds issued 19,812 20,192 (381) (1.9)

Other liabilities 21,267 14,578 6,689 45.9

Shareholders’ equity 18,126 17,487 639 3.7

Asset Quality

Despite the increase in total loans, NPLs for the year were down significantly year-on-year, by 48.2% to KRW 2.9 trillion. This was due to the Bank’s

continuing efforts to build asset soundness, improve the concentration of high-volume loans and spreading a culture of increasing accountability for

preventing defaults. Moreover the Delinquency Ratio fell, down to 0.82%.

CHANGE

(Unit: KRW trillion) 2011 2010 AMOUNT %, %p

Total loans 175.7 168.1 7.6 4.5

NPLs 2.9 5.6 (2.7) (48.2)

NPL ratio(%) 1.65 3.34 (1.69)

Delinquency Ratio(%) 0.82 0.99 (0.17)

Capital Adequacy

Several factors impacted on shareholders’ equity during the year, such as the accumulation of Capital Reserve for Credit Loss and the repayment of

hybrid securities. The Tier 1 ratio, however, despite falling slightly, still stood at 10.74%, and although the BIS ratio also slightly dropped, still remained

strong at 13.78%.

(Unit:%) 2011 2010 CHANGE (%p)

Tier 1 ratio 10.74 11.40 (0.66)

BIS ratio 13.78 14.65 (0.87)



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FINANCIAL REVIEW

To the Shareholder and the Board of Directors of Woori Bank

We have audited the accompanying consolidated financial statements of Woori Bank and its subsidiaries (the “Group”). The financial statements

consist of the consolidated statements of financial position as of December 31, 2011, December 31, 2010 and January 1, 2010, respectively, and the

related consolidated statements of comprehensive income, consolidated statements of changes in equity and consolidated statements of cash flows, all

expressed in Korean won, for the years ended December 31, 2011 and 2010, respectively. The Group’s management is responsible for the preparation

and fair presentation of the consolidated financial statements and our responsibility is to express an opinion on these consolidated financial statements

based on our audits.

We conducted our audits in accordance with auditing standards generally accepted in the Republic of Korea. Those standards require that we plan

and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes

examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting

principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our

audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the Group as of December 31,

2011, December 31, 2010 and January 1, 2010, respectively, and the results of its operations and its cash flows for the years ended December 31, 2010

and 2011, respectively, in conformity with Korean International Financial Reporting Standards (“K-IFRS”).

Accounting principles and auditing standards and their application in practice vary among countries. The accompanying consolidated financial statements

are not intended to present the financial position, results of operations and cash flows in accordance with accounting principles and practices generally

accepted in countries other than the Republic of Korea. In addition, the procedures and practices utilized in the Republic of Korea to audit such financial

statements may differ from those generally accepted and applied in other countries. Accordingly, this report and the accompanying consolidated

financial statements are for use by those knowledgeable about Korean accounting procedures and auditing standards and their application in practice.

March 12, 2012

Notice to Readers

This report is effective as of March 12, 2012, the auditors’ report date. Certain subsequent events or circumstances may have occurred between this

auditors’ report date and the time the report is read. Such events or circumstances could significantly affect the accompanying consolidated financial

statements and may result in modifications to the auditors’ report.

English Translation of a Report Originally Issued in Korean

Independent Auditors’ Report

WOORI BANK

(Unit : Korean Won In millions) December 31, 2011 December 31, 2010 January 1, 2010

ASSETS

Cash and cash equivalents (Note 6) \ 5,389,267 \ 3,885,684 \ 5,040,146

Financial assets at fair value through profit or loss (Notes 7, 11 and 18) 11,317,845 11,104,050 12,334,845

Available-for-sale financial assets (Notes 8, 11 and 18) 14,670,607 16,610,090 16,702,454

Held-to-maturity financial assets (Notes 9, 11 and 18) 15,400,425 15,920,317 12,527,029

Loans and receivables (Notes 10, 11 and 18) 191,909,032 177,630,875 176,849,334

Investments in associates (Note 12) 376,337 306,229 248,832

Investment properties (Note 13) 349,459 366,874 391,963

Premises and equipment, net (Note 14) 2,345,960 2,334,386 2,358,890

Intangible assets, net (Note 15) 147,387 39,366 68,143

Other assets (Note 16) 225,530 207,467 251,542

Current tax assets 2,393 2,833 16,377

Deferred tax assets 9,249 8,283 22,669

Derivative assets (Notes 11 and 25) 326,413 133,224 107,508

Assets held for sale (Note 17) 2,258 5,185 7,609

Total assets \ 242,472,162 \ 228,554,863 \ 226,927,341

LIABILITIES

Financial liabilities at fair value through profit or loss (Notes 11 and 19) \ 3,509,566 \ 4,729,575 \ 5,764,546

Deposits due to customers (Notes 11 and 20) 164,092,476 157,314,309 150,124,550

Borrowings (Notes 11 and 21) 19,174,642 18,982,971 20,752,335

Debentures (Notes 11 and 21) 19,811,813 20,192,427 23,476,103

Provisions (Notes 22 and 23) 607,612 519,829 550,761

Current tax liabilities 206,367 109,283 5,715

Other financial liabilities (Notes 11 and 24) 16,346,969 8,799,937 8,429,081

Other liabilities (Note 24) 444,549 277,757 693,182

Deferred tax liabilities 126,446 107,425 146,104

Derivative liabilities (Notes 11 and 25) 25,582 34,419 64,597

Total liabilities \ 224,346,022 \ 211,067,932 \ 210,006,974

(Continued)

AS OF DECEMBER 3 1, 2011, DECEMBER 31, 2010 AND JANUARY 1, 2010

Woori Bank And SubsidiariesConsolidated Statements Of Financial Position

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FINANCIAL REVIEW

(Unit : Korean Won In millions) December 31, 2011 December 31, 2010 January 1, 2010

EQUITY

Owner’s equity:

Capital stock (Note 27) \ 3,829,783 \ 3,829,783 \ 3,829,783

Hybrid securities (Note 27) 1,681,807 2,181,806 2,181,806

Capital surplus (Note 27) 812,016 811,421 811,993

Other equity (Note 28) 538,385 938,260 1,192,263

Retained earnings (Note 29)(Planned regulatory reserve for credit loss) (Note 30)

11,256,207 (1,123,866)

9,718,577(513,676)

8,898,270

18,118,198 17,479,847 16,914,115

Non-controlling interests 7,942 7,084 6,252

Total equity 18,126,140 17,486,931 16,920,367

Total liabilities and equity \ 242,472,162 \ 228,554,863 \ 226,927,341

See accompanying notes to consolidated financial statements.

Woori Bank And Subsidiaries Consolidated Statements Of Financial Position (Continued)AS OF DECEMBER 31, 2011, DECEMBER 31, 2010 AND JANUARY 1, 2010

WOORI BANK

(Unit : Korean Won In millions, except for income per share data) 2011 2010

OPERATING INCOME:

Net interest income (Note 32):

Interest income \ 11,659,258 \ 10,981,048

Interest expense 5,933,662 5,954,286

5,725,596 5,026,762

Net fees and commissions income (Note 33):

Fees and commissions income 993,929 931,530

Fees and commissions expense 485,938 437,737

507,991 493,793

Dividend income (Note 34) 123,150 119,095

Gain on financial instruments at fair value through profit or loss (Note 35) 106,682 15,213

Gain on available-for-sale financial assets (Note 36) 1,016,746 978,546

Impairment losses for loans, other receivables, guarantees and unused commitments (Note 38)

(1,816,603) (2,496,083)

General and administrative expenses (Note 39)

Employee compensation and benefits (1,189,959) (983,279)

Depreciation (126,740) (125,682)

Other general and administrative expenses (1,236,094) (1,154,545)

(2,552,793) (2,263,506)

Net other operating income (expenses) (Note 39) (427,685) (376,191)

2,683,084 1,497,629

SHARE OF PROFITS (LOSSES) OF ASSOCIATES (23,913) 39,224

NET INCOME BEFORE INCOME TAX EXPENSE 2,659,171 1,536,853

INCOME TAX EXPENSE 589,800 274,749

NET INCOME (Note 30)(Net income after the planned reserves providedfor the year ended December 31, 2011: \1,459,182)

\ 2,069,371 \ 1,262,104

Net income attributable to owner 2,068,544 1,261,283

Net income attributable to the non-controlling interests 827 821

(Continued)


Woori Bank And Subsidiaries Consolidated Statements Of Comprehensive Income

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FINANCIAL REVIEW

(Unit : Korean Won In millions, except for income per share data) 2011 2010

OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX:

Loss on valuation of available-for-sale financial assets \ (396,510) \ (219,681)

Share of other comprehensive loss on investment in associates (22,348) (22,255)

Gain (loss) on overseas business translation 12,152 (13,108)

Gain on valuation of cash flow hedge 6,868 1,170

(399,838) (253,874)

TOTAL COMPREHENSIVE INCOME \ 1,669,533 \ 1,008,230

Comprehensive income attribute to owner 1,668,675 1,007,276

Comprehensive income attribute to the non-controlling interests 858 954

NET INCOME PER SHARE: (In Korean Won) (Note 41)

Basic earnings per common share \ 2,687 \ 1,508

Diluted earnings per common share \ 2,514 \ 1,443


Woori Bank And Subsidiaries Consolidated Statements Of Comprehensive Income (Continued)FOR THE YEARS ENDED DECEMBER 31, 2011 AND 2010

WOORI BANK

(Unit : Korean Won In million)–

Capitalstock

Hybrid securities

Capitalsurplus

Gain (loss) on valuation of

available-for-sale financial

assets

Gain (loss) on valuation of cash flow

risk hedge

Gain (loss) on overseas business

translation

Share of other comprehen-sive loss on associates Other

Retained earnings

Controlling equity

Non-controlling

equityTotal

Equity

Balance as of January 1, 2010

\ 3,829,783 \ 2,181,806 \ 811,529 \ 1,159,619 \ (10,468) \ - \ 43,112 \ - \ 8,975,782 \ 16,947,901 \ 6,252 \ 16,920,367

Dividends - - - - - - - - (441,618) (441,618) (122) (441,740)

Net income - - - - - - - - 1,261,283 1,261,283 821 1,262,104

Variation of available-for-sale financial assets

- - - (219,681) - - - - - (219,681) - (219,681)

Foreign currency translation

- - - - - (13,241) - - - (13,241) 133 (13,108)

Cash flow hedge - - - - 1,170 - - - - 1,170 - 1,170

Changes in equity of investment in associates

- - - - - - (22,255) - - (22,255) - (22,255)

Other - - (572) - - - - 4 642 74 - 74

Balance as of December 31, 2010

\ 3,829,783 \ 2,181,806 \ 811,421 \ 939,938 \ (9,298) \(13,241) \ 20,857 \ 4 \ 9,718,577 \ 17,479,847 \ 7,084 \ 17,486,931

Balance as of January 1, 2011

\ 3,829,783 \ 2,181,806 \ 811,421 \ 939,938 \ (9,298) \ (13,241) \ 20,857 \ 4 \ 9,718,577 \ 17,479,847 \ 7,084 \ 17,486,931

Dividends - - - - - - - - (530,273) (530,273) - (530,273)

Redemption of hybrid securities

- (499,999) - - - - - (1) - (500,000) - (500,000)

Net income - - - - - - - - 2,068,544 2,068,544 827 2,069,371

Variation of available-for-sale financial assets

- - - (396,510) - - - - - (396,510) - (396,510)


- - - - - 12,121 - - - 12,121 31 12,152

Cash flow hedge - - - - 6,868 - - - - 6,868 - 6,868

Changes in equity of investment in associate

- - - - - - (22,348) - - (22,348) - (22,348)

Other - - 595 - - - - (5) (641) (51) - (51)

Balance as of December 31, 2011

\ 3,829,783 \ 1,681,807 \ 812,016 \ 543,428 \ (2,430) \ (1,120) \ (1,491) \ (2) \ 11,256,207 \ 18,118,198 \ 7,942 \ 18,126,140


FOR YEARS ENDED DECEMBER 31, 2011 AND 2010

Woori Bank And SubsidiariesConsolidated Statements Of Changes In Equity

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(Unit : Korean Won In million) 2011 2010

CASH FLOWS FROM OPERATING ACTIVITIES:

Net income \ 2,069,371 \ 1,262,104

Adjustment to net income:

Interest income (11,659,258) (10,981,048)

Interest expense 5,933,662 5,954,286

Dividend income (123,150) (119,095)

Income tax expense 589,800 274,749

(5,258,946) (4,871,108)

Additions of expenses not involving cash outflows:

Impairment losses for loans, other receivables, guarantees and unused commitments 1,816,603 2,496,083

Loss on disposal of premises and equipment, intangible assets and investment properties 2,675 4,526

Depreciation and amortization of premises and equipment, intangible assets and invest-ment properties

126,740 125,682

Impairment loss on premises and equipment, intangible assets and investment properties 4,614 8,530

Loss on valuation of derivatives 4,872 23,224

Loss on transaction of derivatives 5,641 27,489

Loss on fair value hedged items 200,455 163,777

Retirement benefits 100,582 81,162

Provisions 2,654 12,365

Loss on valuation of investment in associates 28,268 4,778

Loss on disposal of investment in associates - 6

2,293,104 2,947,622

Deductions of revenues not involving cash inflows:

Gain on available-for-sale financial assets 1,016,746 978,546

Gains on disposal of premises and equipment, intangible assets and investment properties 8,839 357

Reversal of impairment loss on premises and equipment, intangible assets and investment properties

321 966

Gain on disposal of assets held for sale 56,327 -

Gain on valuation of derivatives 193,141 122,834

Gain on transaction of derivatives 233 6,921

Gain on fair value hedged items 4,921 40,575

Gain on valuation of investment in associates 4,355 44,002

Gain on disposal of investment in associates 26,231 -

1,311,114 1,194,201

(Continued)

Woori Bank And SubsidiariesConsolidated Statements Of Cash FlowsFOR THE YEARS ENDED DECEMBER 31, 2011 AND 2010

WOORI BANK


Changes in operating assets and liabilities:

Decrease (increase) in financial instruments at fair value through profit or loss \ (1,433,804) \ 195,824

Increase in loans and receivables (15,971,167) (3,272,047)

Decrease (increase) in other assets (38,933) 40,337

Increase in deposits due to customers 6,778,167 7,189,758

Decrease in provisions (122,730) (131,434)

Increase in other financial liabilities 7,424,755 73,588

Increase (decrease) in other liabilities 182,271 (415,235)

(3,181,441) 3,680,791

Interest income received 11,618,277 10,888,755

Interest expense paid (5,816,405) (5,656,903)

Dividend received 123,150 119,095

Income taxes paid (361,384) (110,286)

Net cash provided by operating activities 174,612 7,065,869

CASH FLOWS FROM INVESTING ACTIVITIES:

Cash in-flows from investing activities:

Disposal of available-for-sale financial assets 11,088,564 11,258,748

Disposal of held-to-maturity financial assets 5,761,763 6,481,737

Disposal of investment in associates 139,328 5,510

Dividends received from investment in associates 67 63,260

Disposal of investment properties 11,780 -

Disposal of premises and equipment 10,637 12,537

Disposal of intangible assets 1,466 394

Disposal of assets held for sale 5,644 150

17,019,249 17,822,336

Cash out-flows from investing activities:

Acquisition of available-for-sale financial assets 8,504,277 10,475,176

Acquisition of held-to-maturity financial assets 5,323,490 9,882,815

Acquisition of investment in associates 222,100 2,277

Acquisition of premises and equipment 92,538 56,565

Acquisition of intangible assets 157,454 11,100

14,299,859 20,427,933

Net cash provided by (used in) investing activities 2,719,390 (2,605,597)

(Continued)

FOR YEARS ENDED DECEMBER 31, 2011 AND 2010

Woori Bank And SubsidiariesConsolidated Statements Of Cash Flows (Continued)

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CASH FLOWS FROM FINANCING ACTIVITIES:

Cash in-flows from financing activities:

Issue of borrowings \ 4,521,806 \ 2,706,394

Issue of debentures 3,020,798 6,368,785

Increase in hedging derivatives 193,666 102,643

7,736,270 9,177,822

Cash out-flows from financing activities:

Repayment of borrowings 4,330,135 4,475,758

Repayment of debentures 3,590,090 9,777,043

Decrease in hedging derivatives 204,027 77,995

Repayment of hybrid securities 500,000 -

Dividends paid 530,273 441,618

9,154,525 14,772,414

Net cash used in financing activities (1,418,255) (5,594,592)

Effects of exchange rate changes on cash and cash equivalents 27,836 (20,142)

NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS

1,503,583 (1,154,462)

CASH AND CASH EQUIVALENTS, BEGINNING OF THE YEAR

3,885,684 5,040,146

CASH AND CASH EQUIVALENTS, END OF THE YEAR \ 5,389,267 \ 3,885,684


Woori Bank And SubsidiariesConsolidated Statements Of Cash Flows (Continued)FOR THE YEARS ENDED DECEMBER 31, 2011 AND 2010


Woori Bank And SubsidiariesNotes To Consolidated Financial Statements

WOORI BANK

1. GENERAL

(1) Woori Bank

Woori Bank (hereafter referred to as, the” Bank” or the “Parent” or the “Company”) was established in 1899 and is engaged in the commercial

banking business under the Banking Law, trust business under the Financial Investment Services and Capital Market Act and foreign exchange business

with approval from the Bank of Korea (“BOK”) and the Ministry of Finance and Economy (“MOFE”).

On March 27, 2001, Korea Deposit Insurance Corporation (“KDIC”) established Woori Finance Holdings Co., Ltd. (“WFH”). The Bank is a wholly owned

subsidiary of WFH as of December 31, 2011. The Bank’s common stock and preferred stock amount, expressed in Korean Won (the “KRW” or “\”),

to \3,479,783 million and \350,000 million, respectively, and the Bank’s common and preferred shares issued and outstanding as of December 31,

2011 are 696 million shares and 70 million shares, respectively. The head office of the Bank is located in Seoul, Korea. The Bank has 942 branches and

offices in Korea, and 16 branches and offices in overseas.

(2) Subsidiaries

1) The Bank and its subsidiaries (the “Group”) have the following subsidiaries (Unit: Korean Won in millions, USD in thousands,

RUB in 100 millions, IDR in millions):

December 31, 2011

Subsidiaries Location Capital stockMainbusiness

Number ofshares owned

Percentageof ownership

(%)

Financial statementsas of

Woori Credit Information Co., Ltd.

Korea KRW 5,000 Credit information 1,008,000 100.0 Dec. 31

Woori America Bank U.S.A USD 122,500 Banking 24,500,000 100.0 Dec. 31

PT. Bank Woori Indonesia Indonesia IDR 170,000 Banking 1,618 95.2 Dec. 31

Woori Global Market Asia Limited

Hongkong USD 50,000 Banking 39,000,000 100.0 Dec. 31

Woori Bank China Limited China USD 308,810 Banking - 100.0 Dec. 31

ZAO Woori Bank Russia RUB 5 Banking 19,999,999 100.0 Dec. 31

Korea BTL Infrastructure Fund (*1)

Korea KRW 467,000 Financial service 93,393,568 100.0 Dec. 31

Woori Fund Service Co., Ltd. (*2)

Korea KRW 3,000 Financial service 600,000 100.0 Dec. 31

December 31, 2010 January 1, 2010

SubsidiariesNumber of

shares ownedPercentage

of ownership (%)Number of


of ownership (%)

Woori Credit Information Co., Ltd. 1,008,000 100.0 1,008,000 100.0

Woori America Bank 24,500,000 100.0 10,500,000 100.0

PT. Bank Woori Indonesia 1,618 95.2 1,618 95.2

Woori Global Market Asia Limited 39,000,000 100.0 39,000,000 100.0

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SubsidiariesNumber of


of ownership (%)Number of


of ownership (%)

Woori Bank China Limited - 100.0 - 100.0

ZAO Woori Bank 19,999,999 100.0 19,999,999 100.0

Korea BTL Infrastructure Fund 66,958,321 100.0 55,152,422 100.0

(*1) The Group decided to acquire 166,606,432 shares with an amount of \ 833,032 million on March 7, 2012, and the Group’s total shares after the acquisition is 260,000,000 shares.

(*2) During the year ended December 31, 2011, Woori Fund Service Co., Ltd. was established through a 100% capital contribution by the Bank, and accordingly is included in the consolidation.

2) For special purpose entities (“SPE”), in accordance with Korean International Financial Reporting Standards (“K-IFRS”) 2012

‘Consolidation-special purpose entities’, entities which the Group has decision making power and/or carries the benefits and

risks of such entities, are included in the consolidation. Details of special purposes entities under consolidation are as follows:

<December 31, 2011>

Subsidiaries LocationMainbusiness

Percentage of owner-ship (%)

Financial statements as of

Kumho Trust 1st Co., Ltd.(*1) KoreaAsset Securitization

0.0 December 31

Woori IB Global Bond Co., Ltd. (*1) Korea \ 0.0 December 31

Asiana Saigong Inc. (*1) Korea \ 0.0 December 31

An-Dong Raja 1st Co., Ltd. (*1) Korea \ 0.0 December 31

KAMCO Value Recreation 1st Securitization Specialty Co., Ltd. (*1)

Korea \ 15.0 December 31

IB Global 1st Co., Ltd. (*1) Korea \ 0.0 December 31

Hermes STX Co., Ltd. (*1) Korea \ 0.0 December 31

BWL 1st Co., LLC. (*1) Korea \ 0.0 December 31

Consus 8th Co., LLC. (*1) Korea \ 0.0 December 31

Real DW 2nd Co., Ltd. (*1) Korea \ 0.0 December 31

Uri Pungsan Inc. (*1) Korea \ 0.0 December 31

Pyeongtaek Ocean Sand Inc. (*1) Korea \ 0.0 December 31

Woori Bank Preservation Trust of principal and interest (*2) Korea Trust 0.0 December 31

Haeoreum Short-term Bond 15th (*3) KoreaSecurities investment

100.0 December 31

(Unsold) G5 Pro Short-term 13th (*3) Korea \ 100.0 December 31

(Unsold) G6 First Class Mid-term E-20 (*3) Korea \ 100.0 December 31

(Unsold) G15 First Class Mid-term C-1 (*3) Korea \ 100.0 December 31

D First Class Mid-term C-151 (*3) Korea \ 100.0 December 31

Golden Bridge Sidus FNH video (*3) Korea \ 58.8 December 31

Golden Bridge NHN Online Private Equity Investment (*3) Korea \ 60.0 December 31



WOORI BANK




Woori CS Ocean Bridge 7th (*3) Korea \ 61.1 December 31

Woori Milestone Private Real Estate Fund 1st (*3) Korea \ 94.8 December 31

Woori Milestone China Real Estate Fund 1st (*3) Korea \ 80.7 December 31

Consus Sakhalin Real Estate Investment Trust 1st (*3) Korea \ 75.0 December 31

Woori Partner Plus Private Equity Securities 4th (*3) Korea \ 100.0 December 31

Allianz Blue Ocean Private Trust 5th (*3) Korea \ 100.0 December 31

Mirae Asset Maps Blue Chips Private Trust 2nd (*3) Korea \ 100.0 December 31

Hyundai Advantage Private Trust 14th (*3) Korea \ 100.0 December 31

Kyobo Axa Long Short Private Trust 2nd (*3) Korea \ 100.0 December 31

Hanhwa Quant Long Short Private Equity3rd (*3) Korea \ 100.0 December 31

Woori Frontier Alpha Private Equity 8th (*3) Korea \ 100.0 December 31

Midas Private Investment Trust W-3rd (*3) Korea \ 100.0 December 31

Consus Private Securities Investment Trust 54th (*3) Korea \ 100.0 December 31

Woori Partner Plus Private Trust 7th (*3) Korea \ 100.0 December 31

Yurie WB Private Investment Trust 3rd (*3) Korea \ 100.0 December 31

KDB Private Equity Securities Investment Trust WB 2nd (*3) Korea \ 100.0 December 31

Samsung Plus Private Investment Trust 13th (*3) Korea \ 100.0 December 31

Hanwha Smart Private Trust 43rd (*3) Korea \ 100.0 December 31

Eugene Pride Private Trust 21st (*3) Korea \ 100.0 December 31

Meritz Prime Private Trust 42nd (*3) Korea \ 100.0 December 31



Hanwha Smart Private Trust 50th (*3) Korea \ 100.0 December 31

(*1) Classified as SPE for asset securitization. The Group has less than majority ownership for the SPE, but included in consolidation scope considering the activities of the SPE, decision-making power maintained by the Group, and the benefits and risks carried by the Group.

(*2) Classified as SPE for money trust under trust business law. The Group has less than majority ownership for the SPE, but included in consolidation scope considering the activities of the SPE, decision-making power maintained by the Group, and the benefits and risks carried by the Group

(*3) Classified as SPE for investing in securities and others and included in consolidation scope considering the activities of the SPE, decision-making power maintained by the Group, and the benefits and risks carried by the Group.

<December 31, 2010>




Woori Moa Conduit Co., Ltd. KoreaAssetSecuritization

0.0 December 31

Hyundai Glory 1st Co., Ltd. Korea \ 0.0 December 31

KDB Capital 1st Co., Ltd. Korea \ 0.0 December 31

Vivaldi HL 1st Co., Ltd. Korea \ 0.0 December 31

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Swan SF Co., Ltd. Korea \ 0.0 December 31

Kumho Trust 1st Co., Ltd. Korea \ 0.0 December 31

Woori IB Global Bond Co., Ltd. Korea \ 0.0 December 31

Asiana Saigong Inc. Korea \ 0.0 December 31

An-Dong Raja 1st Co., Ltd. Korea \ 0.0 December 31

KAMCO Value Recreation 1st Securitization Specialty Co., Ltd. (*1) Korea \ 15.0 December 31

IB Global 1st Co., Ltd. Korea \ 0.0 December 31

Hermes STX Co., Ltd. Korea \ 0.0 December 31

BWL 1st Co., LLC. Korea \ 0.0 December 31

Consus 8th Co., LLC. Korea \ 0.0 December 31

Real DW 2nd Co., Ltd. Korea Trust 0.0 December 31

Woori Bank Preservation Trust of principal and interest KoreaSecurities investment

100.0 December 31

KTB Smart 90 Private Security 2nd Korea \ 100.0 December 31

Hanvit Open-End High Yield HV 1st Korea \ 100.0 December 31

Mid-term D-2nd Korea \ 100.0 December 31

Hanhwa Smart Private Security 19th Korea \ 100.0 December 31

My Asset Private Security Investment Trust W- 1st Korea \ 100.0 December 31

Eugene Pride Private Investment Security 12th (Bond) Korea \ 100.0 December 31

Consus Private Security Investment Trust 29th Korea \ 100.0 December 31

Hi-Smart Private Security 1st Korea \ 100.0 December 31

Woori Frontier Short-term Private 2nd Korea \ 100.0 December 31

Woori Frontier Alpha Quant Private Equity 3rd Korea \ 100.0 December 31

Meritz Prime Private Trust1st Korea \ 100.0 December 31

Yurie WB Private Security Investment Trust 2nd Korea \ 100.0 December 31

KDB Private Security Investment Trust WB-1st Korea \ 100.0 December 31

Samsung Plus Private Security 7th Korea \ 100.0 December 31

Eugene Pride Private Investment Security 14th (Bond) Korea \ 100.0 December 31

Hanhwa Smart Private Security Investment Trust 33th Korea \ 100.0 December 31

Taurus 1st Korea \ 100.0 December 31

Brain 3rd Korea \ 100.0 December 31

Meritz Prime Private Trust 5th Korea \ 100.0 December 31

Prudential Quant Long-Short Private Trust 1st Korea \ 100.0 December 31

Prudential Quant Long-Short Private Trust 2nd Korea \ 100.0 December 31

Woori Partner Plus Private Security Investment Trust 6th Korea \ 100.0 December 31

Haeoreum Short-term Bond 15th Korea \ 100.0 December 31



WOORI BANK




(Unsold) G5 Pro Short-term 13th Korea \ 100.0 December 31

(Unsold) G6 First Class Mid-term E-20 Korea \ 100.0 December 31

(Unsold) G15 First Class Mid-term C-1 Korea \ 100.0 December 31

D First Class Mid-term C-151 Korea \ 100.0 December 31

Golden Bridge Sidus FNH video Korea \ 58.8 December 31

Golden Bridge NHN Online Private Equity Investment Korea \ 60.0 December 31

Woori CS Ocean Bridge 7th Korea \ 61.1 December 31

Woori Milestone Private Real Estate Fund 1st Korea \ 94.8 December 31

Woori Milestone China Real Estate Fund 1st Korea \ 80.7 December 31

Consus Sakhalin Real Estate Investment Trust 1st Korea \ 75.0 December 31

Woori Partner Plus Private Equity Securities 4th Korea \ 100.0 December 31

<January 1, 2010>




Woori Frontier Co., LLC. KoreaAsset Securitization

0.0 December 31

Purun Woori First Co., Ltd. Korea \ 0.0 December 31

Change Up B Co., Ltd. Korea \ 0.0 December 31

Woori ship Mortgage 2-2nd ABCP Co., Ltd. Korea \ 0.0 December 31

Woori Moa Conduit Co., Ltd. Korea \ 0.0 December 31

Hyundai Glory 1st Co., Ltd. Korea \ 0.0 December 31

KDB Capital 1st Co., Ltd. Korea \ 0.0 December 31

Vivaldi HL 1st Co., Ltd. Korea \ 0.0 December 31

Swan SF Co., Ltd. Korea \ 0.0 December 31

Kumho Trust 1st Co., Ltd. Korea \ 0.0 December 31

Woori IB Global Bond Co., Ltd. Korea \ 0.0 December 31

Asiana Saigong Inc. Korea \ 0.0 December 31

An-Dong Raja 1st Co., Ltd. Korea \ 0.0 December 31

KAMCO Value Recreation 1st Securitization Specialty Co., Ltd. (*1)

Korea \ 15.0 December 31

Consus 8th Co., LLC. Korea \ 0.0 December 31

Woori Bank Preservation Trust of principal and interest Korea Trust 0.0 December 31

KTB Smart 90 Private Security 2nd KoreaSecurities investment

100.0 December 31

Hanvit Open-End High Yield hv 1st Korea \ 100.0 December 31

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Mid-term D-2nd Korea \ 100.0 December 31

Hanhwa Smart Private Security 19th Korea \ 100.0 December 31

Haeoreum Short-term Bond 15th Korea \ 100.0 December 31

(Unsold) G5 Pro Short-term 13th Korea \ 100.0 December 31

(Unsold) G6 First Class Mid-term E-20 Korea \ 100.0 December 31

(Unsold) G15 First Class Mid-term C-1 Korea \ 100.0 December 31

D First Class Mid-term C-151 Korea \ 100.0 December 31

Golden Bridge Sidus FNH video Korea \ 58.8 December 31

Golden Bridge NHN Online Private Equity Investment Korea \ 60.0 December 31

Woori CS Ocean Bridge 7th Korea \ 61.1 December 31

Woori Milestone Private Real Estate Fund 1st Korea \ 94.8 December 31

Woori Milestone China Real Estate Fund 1st Korea \ 98.5 December 31

Consus Sakhalin Real Estate Investment Trust 1st Korea \ 75.0 December 31

My Asset Private Ace Bond 26th Korea \ 100.0 December 31

Eugene Best Plan Private Bond 31st Korea \ 100.0 December 31

Prudential Private Investment Trust 2nd Korea \ 100.0 December 31

Hana UBS Private Security Investment Trust 8th Korea \ 100.0 December 31

Mirae Asset Maps Platinum Alpha 2nd Korea \ 100.0 December 31

Mirae Asset Maps Alpha Arbitrage Private Korea \ 100.0 December 31

Woori Frontier Alpha Quant Private Equity 2nd Korea \ 100.0 December 31

Consus Private Security Investment Trust 12th Korea \ 100.0 December 31

GS Asset Allocation Private Security Investment Trust 1st Korea \ 100.0 December 31

Trustone Private Security Investment Trust 1st Korea \ 100.0 December 31

KTB Smart 90 Private Security 4th Korea \ 100.0 December 31

Leo 1st Korea \ 100.0 December 31

Brain 1st Korea \ 100.0 December 31

Leo 2nd Korea \ 100.0 December 31

Woori Supreme 1st Korea \ 100.0 December 31

Gaul 1st Korea \ 100.0 December 31

Yurie WB Private Security Investment Trust 1st (Bond) Korea \ 100.0 December 31

Woori Partner Plus Private Equity Securities 3rd Korea \ 100.0 December 31

Wise Private Security Investment Trust 24th Korea \ 100.0 December 31

Eugene Pride Private Security Investment Trust 2nd (Bond) Korea \ 100.0 December 31

G3 First Class Mid-term B-90 Korea \ 100.0 December 31



WOORI BANK

3) Details of special purpose entities newly included in consolidation scope for the year ended December 31, 2011 are as follows:

Special Purposed Entities Reasons

Uri Pungsan Inc. Classified as a SPE for asset securitization. The activities of entities, decision-making powers and benefits and risks are considered when those SPEs are consolidated even if the Group has less than majority ownership for them.

Pyeongtaek Ocean Sand Inc.

Allianz Blue Ocean Private 5th Classified as SPE for investing in securities and other. The activities of entities, decision-making powers and benefits and risks are considered when those SPEs are consolidated.

Mirae Asset Maps Blue Chips Private 2nd

Hyundai Advantage Private 14th

Kyobo Axa Long Short Private Trust 2nd

Hanhwa Quant Long Short Private 3rd

Woori Frontier Alpha Private Equity 8th

Midas Private Investment Trust W 3rd

Consus Private Security Investment Trust 54th

Woori Partner Plus Private Equity Securities 7th

Yurie WB Private Investment Trust 3rd

KDB Private Equity Securities Investment Trust WB 2nd

Samsung Plus Private Investment Trust 13th

Hanwha Smart Private Trust 43rd

Eugene Pride Private Trust 21st

Meritz Prime Private Trust 42nd



Hanwha Smart Private Trust 50th

4) Details of special purpose entities excluded from consolidation for the year ended December 31, 2011 are as follows:


Woori Moa Conduit Co., Ltd.

Expiration of the contract or liquidation stopped from the Group from bearing the majority of the risk resulting from the operation of entities.

Hyundai Glory 1st Co., Ltd.

KDB Capital 1st Co., Ltd.

Vivaldi HL 1st Co., Ltd.

Swan SF Co., Ltd.

KTB Smart 90 Private Security 2nd Disposal and repayment of beneficiary certificates

Hanvit Open-End High Yield HV 1st

Mid-term D-2nd

Hanhwa Smart Private Security 19th

My Asset Private Security Investment Trust W-1st

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Eugene Pride Private Investment Security 12th (Bond)


Hi-Smart Private Security 1st

Woori Frontier Short-term Private 2nd

Woori Frontier Alpha Quant Private Equity 3rd

Meritz Prime Private Trust 1st

Yurie WB Private Security Investment Trust 2nd

KDB Private Security Investment Trust WB-1st


Eugene Pride Private Security Investment Trust 14th (Bond)

Hanhwa Smart Private Security 33rd

Taurus 1st

Brain 3rd

Meritz Prime Private Trust 5th


Prudential Quant Long-Short Private Trust 1st

Prudential Quant Long-Short Private Trust 2nd

Woori Partner Plus Private Security Investment Trust 6th

5) Details of special purpose entities newly included in consolidation scope for the year ended December 31, 2010 are as follows:


IB Global 1st Co., Ltd.Classified as a SPE for asset securitization. The activities of entities, decision-making powers and benefits and risks are considered when those SPEs are consolidated even if the Group has less than majority ownership for them.

Hermes STX Co., Ltd.

BWL 1st Co., LLC.

Real DW 2nd Co., Ltd.

My Asset Private Security Investment Trust W-1st

Classified as SPE for investing in securities and other. The ac-tivities of entities, decision-making powers and benefits and risks are considered when those SPEs are consolidated.

Eugene Pride Private Investment Security 12th (Bond)


Hi-Smart Private Security 1st

Woori Frontier Short-term Private 2nd

Woori Frontier Alpha Quant Private Equity 3rd

Meritz Prime Private Trust 1st

Yurie WB Private Security Investment Trust 2nd

KDB Private Security Investment Trust WB-1st




WOORI BANK


Eugene Pride Private Security Investment Trust 14th (Bond)

Hanhwa Smart Private Security 33rd

Taurus 1st

Brain 3rd

Meritz Prime Private Trust 5th


Prudential Quant Long-Short Private Trust 1st

Prudential Quant Long-Short Private Trust 2nd



6) Details of special purpose entities excluded from consolidation for the year ended December 31, 2010 are as follows:


Woori Frontier Co., LLC.

Expiration of the contract or liquidation stopped from the Group from bearing the majority of the risk resulting from the operation of entities.

Purun Woori 1st Co., Ltd.

Change Up B

Woori ship Mortgage 2nd ABCP Co., Ltd.

My Asset Private Ace Bond 26th

Disposal and repayment of beneficiary certificates

Eugene best plan Private Trust 31st

Prudential Private Investment Trust 2nd

Hana UBS Private Security Investment Trust 8th

Mirae Asset Maps Platinum Alpha 2nd

Mirae Asset Maps Arbitrage Private

Woori Frontier Alpha Quant Private 2nd


GS Asset Allocation Private Security Investment Trust 1st

Trustone Private Security Investment Trust 1st

KTB Smart 90 Private Security 4th

Leo 1st

Brain 1st

Leo 2nd

Woori Supreme 1st

Gaul 1st

Yurie WB Private Security Investment Trust 1st (Bond)

Woori Partner Plus Private Equity Securities 3rd

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Wise Private Security Investment Trust 24th

Eugene Pride Private Security Investment Trust 2nd (Bond)

G3Top-Notch Mid-term B-90

7) Summarized statements of financial position as of December 2011 and 2010, respectively, and comprehensive income

statements for the years ended December 31, 2011 and 2010, respectively, of subsidiaries, whose financial information are

included on the consolidated financial statements, are as follows (Unit: Korean Won in millions):

<December 31, 2011>

Subsidiaries Assets Liabilities EquityNet income

(loss)Total comprehensive

income (loss)

Woori Credit Information Co., Ltd. \ 30,148 \ 3,811 \ 26,337 \ 3,340 \ 3,340

Woori America Bank 1,102,653 965,740 136,913 1,953 3,857

PT. Bank Woori Indonesia 643,915 479,248 164,667 17,149 17,808

Woori Global Market Asia Limited 189,541 136,536 53,005 (8,776) (8,353)

Woori Bank China Limited 2,995,451 2,562,582 432,869 22,884 28,919

ZAO Woori Bank 350,235 329,099 21,136 1,590 712

Korea BTL Infrastructure Fund 473,983 187 473,796 24,637 24,637

Woori Fund Service Co., Ltd. 2,719 361 2,358 (596) (596)

Woori Bank Preservation Trust of principal and interest

8,285 8,285 - - -

SPEs under consolidation 896,711 1,065,745 (169,034) (10,522) (21,606)

Beneficiary Certificates under consolidation 1,654,962 44,479 1,610,483 8,458 11,213

<December 31, 2010>



income (loss)

Woori Credit Information Co., Ltd. \ 29,433 \ 3,916 \ 25,517 \ 3,425 \ 3,425

Woori America Bank 1,196,801 1,063,745 133,056 (70,283) (73,314)

PT. Bank Woori Indonesia 487,557 340,697 146,860 17,012 19,780

Woori Global Market Asia Limited 182,730 121,372 61,358 3,361 1,861

Woori Bank China Limited 2,237,662 1,833,707 403,955 14,255 4,162

ZAO Woori Bank 170,027 149,603 20,424 956 296

Korea BTL Infrastructure Fund 340,478 137 340,341 21,067 21,067


8,483 8,483 - - -

SPEs under consolidation 1,019,267 1,166,656 (147,389) 95,629 108,516



WOORI BANK



income (loss)

Beneficiary Certificates under consolidation 1,814,661 260,267 1,554,394 52,110 52,802

8) Summarized statements of financial position as of January 1, 2010 of subsidiaries, whose financial information are included

on the consolidated financial statements, are as follows (Unit: Korean Won in millions):

Subsidiaries Assets Liabilities Equity

Woori Credit Information Co., Ltd. \ 28,734 \ 4,122 \ 24,612

Woori America Bank 1,247,557 1,122,002 125,555

PT. Bank Woori Indonesia 408,585 278,978 129,607

Woori Global Market Asia Limited 185,497 126,001 59,496

Woori Bank China Limited 1,752,633 1,352,845 399,788

ZAO Woori Bank 151,349 131,221 20,128

Korea BTL Infrastructure Fund 279,909 115 279,794

Woori Bank Preservation Trust of principal and interest 12,044 12,044 -

Special Purpose Entities under consolidation 1,292,047 1,549,720 (257,673)

Beneficiary Certificates under consolidation 944,431 133,137 811,294

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

(1) Basis of financial statement presentation.

The Group has adopted K-IFRS from the fiscal year beginning on January 1, 2011 and the accompanying consolidated financial statements are prepared

on K-IFRS. In accordance with K-IFRS 1101 ‘First-time Adoption of International Financial Reporting Standards ‘, the transition date to K-IFRS is January

1, 2010. An explanation of how the transition to K-IFRS has affected the financial position as of January 1, 2010 (date of transition), December 31,

2011 and December 31, 2010, and comprehensive income for the year ended December 31, 2011 and 2010 of the Company is provided in Note 47

“Transition Effects of K-IFRS.”

The Group maintains its official accounting records in Korean Won and prepares consolidated financial statements in conformity with K-IFRS, in the

Korean language (Hangul). Accordingly, these consolidated financial statements are intended for use by those who are informed about K-IFRS and

Korean practices. The accompanying consolidated financial statements have been condensed and restructured into English with certain expanded

descriptions from the Korean language financial statements.

Major accounting policies used for the preparation of the consolidated financial statements are stated below. Unless stated otherwise, these accounting

policies have been applied consistently to the financial statements for the current period and accompanying comparative period.

The company’s financial statement has been filled out based on the historical cost method except for specific non-current assets and certain financial

assets. The preparation of consolidated financial statements under K-IFRS requires the application of certain accounting estimates and the Group

prepared its financial statements by management judgement for critical accounting estimates.

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The accompanying consolidated financial statements were approved by the board of directors on March 7, 2012.

(2) Basis of consolidation

1) Subsidiary

An entity which the Group (including special purpose entities) has power to govern the financial and operating policies is considered a subsidiary. In

general, an entity which the Group has over 50% voting power in is considered a subsidiary.

Special purpose entities established for certain limited purposes may be considered as a subsidiary of the Company; even though the Company may

have less than 50% of the voting power, if the Company has the decision-making power over the special purpose entity’s activities, risk and benefit.

The existence of the potential voting power available to exercise or to convert, presently, is considered when evaluating whether or not the Group has

control over an entity. An entity is included in the consolidation, as a subsidiary, once such control is established, while it is excluded from consolidation

once it is loses such control. .

Acquisitions of subsidiaries are accounted for using the acquisition method. The consideration for each acquisition is measured at the aggregate of

the fair values (at the date of exchange) of assets given, liabilities incurred or assumed, equity instruments issued by the Group and acquisition-related

costs. At the acquisition date, the identifiable assets acquired, liabilities and contingent liabilities are recognized at their fair value at the acquisition

date without reference to non-controlling interests. Any excess of the cost of acquisition over the Group’s share of the net fair value of the identifiable

assets, liabilities and contingent liabilities of a subsidiary recognized at the date of acquisition is recognized as goodwill; if less, the difference is directly

recognized as other comprehensive income.

When the Group transacts with each other, unrealized profits and losses resulting from the transactions are eliminated. When a subsidiary of the Group

uses another accounting principle other than that of the Group’s, necessary adjustments are made to the financial statements for the Group’s purposes.

2) Non-controlling interests

The components of net income and other comprehensive income are attributed to the owners of the Group and the non-controlling interest holders.

Total comprehensive income of subsidiaries is attributed to the owners of the Group and to the non-controlling interest holders, even if this results in

the non-controlling interests having a deficit balance. Changes in the Group’s ownership interests in subsidiaries that do not result in the Group losing

control over the subsidiaries are accounted for as equity transactions.

(3) Investments in associates

An associate is an entity over which the Group has significant influence but does not have direct or indirect control over. Significant influence is generally

presumed to exist when the Group holds 20% or more, but less than 50%, of the voting rights. Such investments in associates are measured an

acquisition cost at acquisition date and since then are accounted for using the equity method. The identifiable goodwill (net book value) is included in

investment amounts in associate.

The Group’s interests in its associate’s income are recognized in the statement of consolidated comprehensive income. The changes in the associate’s

retained earnings are recognized by the Company as retained earnings. However, when the Company’s share in an associate changes due to a capital

increase or decrease of the associate, such changes are recognized in other equity (change in interests of equity method securities).

If the Group’s share in an associate’s accumulated loss equals or exceeds the Group’s equity interest, including unsecured receivables, in the associate,

the Group suspends further recognition of its share of the associate’s loss. Unless in circumstances when the Group guarantees or is obligated to pay

the associates payables.



WOORI BANK

(4) Segment reporting

An operating segment is the level of business activity at which management reports to chief operating decision maker, for decision making purposes.

In addition, the chief operating decision maker is responsible for evaluating the resources distributed to and the performance of an operating segment.

(5) Accounting for foreign currencies translations

1) Functional currency and presentation currency

The individual financial statements of each Group entity are presented in the currency of the primary economic environment in which the entity operates

(its functional currency). The consolidated financial statements are expressed in Korean Won.

2) Translation of foreign currencies transactions and balances at the end of reporting period

In preparing the financial statements of the individual entities, transactions in currencies other than the entity’s functional currency (foreign currencies)

are recognized at the rates of exchange prevailing at the dates of the transactions. At the end of each reporting period, monetary items denominated

in foreign currencies are retranslated at the rates prevailing at that date. Exchange differences on monetary items that qualify as hedging instruments

in a cash flow hedge and form part of the Group’s net investment in a foreign operation are recognized in equity.

The Company is recognizing amortized cost and exchange rate variation effect as gains and losses of current period and the variation on the fair value

as other comprehensive gains and losses, respectively, both of which are effect of monetary securities of foreign currencies classified as available-for-

sale financial instruments. And the company is recognizing the variation on fair value and exchange rate variation effect of non-monetary securities of

foreign currencies classified as available-for-sale financial asset, as other comprehensive gains and losses.

3) Foreign currencies translation

Financial position and operating results of the Group are translated into the Group’s reporting currency as follows:

Description

Statement of consolidated finan-cial position

The assets and liabilities are translated at the exchange rate prevailing at the end of the reporting period. Equity is translated at exchange rate at the time of acquisition.

Statement of consolidated com-prehensive income

The statement of consolidated comprehensive income is translated at the average exchange rates for the period, unless exchange rates fluctuated significantly during that period, in which case the exchange rates at the dates of the transactions are used.

(6) Cash and cash equivalents

Cash and cash equivalents consist of cash on hand, demand deposits and short-term, highly liquid investments that are readily convertible to known

amounts of cash and which are subject to an insignificant risk of changes in value.

(7) Financial assets and financial liabilities

1) Classification of financial assets

Financial assets are classified into the following categories depending on the nature and purpose of possession: financial assets at ‘fair value through

profit or loss’ (“FVTPL”), loans and receivables, available-for-sale financial assets (“AFS”), and held-to-maturity investments (“HTM”).

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a) Financial assets at FVTPL

Financial assets are classified at FVTPL when the financial asset is either held for trading or designated at FVTPL. A financial asset is classified as held

for trading if the following criteria are met:

acquired or incurred principally to sell or repurchase during a short period of time

part of a portfolio of identified financial instruments that are managed together and for which there is evidence of a recent actual pattern of short-term

profit-taking

a derivative (except for a derivative that is a financial guarantee contract or a designated and effective hedging instrument)

A financial asset other than a financial asset held for trading may be designated as at FVTPL upon initial recognition if:

such designation eliminates or significantly reduces a recognition or measurement inconsistency that would otherwise arise; or

the financial asset forms part of a group of financial assets or financial liabilities or both, which is managed and its performance is evaluated on a fair

value basis, in accordance with the Group’s documented risk management or investment strategy, and information about the grouping is provided

internally on that basis; or

it forms part of a contract containing one or more embedded derivatives, and K-IFRS 1039 “Financial Instruments: Recognition and Measurement”

permits the entire hybrid (combined) contract to be designated as at FVTPL

b) Loans and receivables

AFS financial assets are those non-derivatives financial assets that are either designated as AFS or are not classified as ‘financial assets at FVTPL’, ‘HTM

investments’ or ‘loans and receivables.’

c) AFS financial assets

AFS financial assets are those non-derivatives financial assets that are either designated as AFS or are not classified as ‘financial assets at FVTPL’, ‘HTM

investments’ or ‘loans and receivables.’

d) HTM financial assets

Non-derivative financial assets with fixed or determinable payments and fixed maturity dates that the Group has the positive intent and ability to hold

to maturity are classified as HTM financial assets

2) Classification of financial liabilities

Financial liabilities are classified as either financial liabilities at FVTPL or other financial liabilities measured at amortized cost.

a) Financial liabilities at FVTPL

Financial liabilities are classified at FVTPL when the financial liabilities is either held for trading or designated at FVTPL. A financial liability is classified as

held for trading if the following criteria are met:

acquired or incurred principally for the purpose of selling or repurchasing it in the near term

part of a portfolio of identified financial instruments that are managed together and for which there is evidence of a recent actual pattern of short-term

profit-taking



WOORI BANK

a derivative (except for a derivative that is a financial guarantee contract or a designated and effective hedging instrument)

A financial liability other than a financial liability held for trading may be designated as at FVTPL upon initial recognition if:

such designation eliminates or significantly reduces a recognition or measurement inconsistency that would otherwise arise; or

the financial asset forms part of a group of financial assets or financial liabilities or both, which is managed and its performance is evaluated on a fair

value basis, in accordance with the Group’s documented risk management or investment strategy, and information about the grouping is provided

internally on that basis; or

it forms part of a contract containing one or more embedded derivatives, and K-IFRS 1039 “Financial Instruments: Recognition and Measurement”

permits the entire hybrid (combined) contract to be designated as at FVTPL

b) Financial liabilities measured at amortized costs

Financial liabilities that are not classified as at FVTPL are measured at amortized costs. Deposits and debt securities that are not designated as at FVTPL

are classified as financial liabilities measured at amortized costs.

3) Recognition and Measurement

Standard trading transaction of a financial asset is recognized at the date of transaction when the Group becomes a party to the contractual provisions

of the asset. All types of financial instruments, except financial assets/liabilities at FVTPL, are measured at fair value at initial recognition plus transaction

costs that are directly attributable to the acquisition (issuance). Financial assets/liabilities at FVTPL are initially recognized at fair value and transaction

costs directly attributable to the acquisition (issuance) are recognized in the statement of comprehensive income.

Financial assets/liabilities at FVTPL and AFS financial assets are subsequently measured at fair value. HTM financial assets, loans and receivables, and

other financial liabilities are measured at amortized costs using the effective interest rate method.

Interest income and expense in accordance with financial assets and liabilities are recognized in profit or loss on an accrual basis using the effective

interest method.

Gains or losses arising from changes in the fair value of the financial assets/liabilities at FVTPL are presented in the statement of comprehensive income

during the period in which they arise. Changes in the fair value of AFS financial assets are measured in other comprehensive income.

Dividends income of financial assets at FVTPL and AFS financial assets is recognized in profit or loss when the Group’s right to receive the dividend is

established.

AFS financial assets recognize cumulative fair value adjustment, which is previously recognized in the equity, in profit or loss when disposing of assets

or recognizing impairment loss.

4) Derecognition of financial assets and liabilities

The Group derecognizes a financial asset when the contractual right to the cash flows from the asset is expired, or when it transfers the financial asset

and substantially all the risks and rewards of ownership of the asset to another company. If the Group neither transfers nor retains substantially all the

risks and rewards of ownership and continues to control the transferred asset, the Group recognizes its retained interest in the asset and an associated

liability for amounts it may have to pay. The Group derecognizes financial liabilities when, and only when, the Group’s obligations are discharged,

cancelled or they expire.

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(8) Offsetting financial instruments

Financial assets and liabilities are presented net in the statement of financial position when the Group has an enforceable legal right to set off and an

intention to settle on a net basis or to realize an asset and settle the liability.

(9) Impairment of financial assets

1) Assets carried at amortized costs

The Group assesses at the end of each reporting period whether there is any objective evidence that a financial asset (or a group of financial assets) is

impaired. A financial asset (or a group of financial assets) is regarded as impaired when there is objective evidence of impairment loss as a result of one

or more events (hereinafter the “loss event”) that occurred after the initial recognition and the loss event has an impact on the estimated future cash

flows of the financial asset.

The criteria used to determine whether there is objective evidence of impairment include:

significant financial difficulty of the issuer or obligor; or

a breach of contract, such as a default or delinquency in interest or principal payments; or

the lender, for economic or legal reasons relating to the borrower’s financial difficulty, granting to the

borrower a concession that the lender would not otherwise consider; or

it becoming probability that the borrower will enter bankruptcy or financial re-organization; or

the disappearance of an active market for the financial asset due to financial difficulties; or

observable data indicating that there is a measurable decrease in the estimated future cash flows of a group of financial assets after initial recognition,

although the decrease in the estimated future cash flows of individual financial assets included in the group is not identifiable.

For individually significant financial assets, the Group assesses whether objective evidence of impairment exists individually, and it assesses for impairment

of financial assets that are not significant on an individual or collective basis. If there is no objective evidence of impairment exists for financial assets

individually assessed, the Group includes the asset in a group of financial assets with similar credit risk characteristics and collectively assesses them for

impairment. Assets for which the Group recognizes impairment based on an individual assessment or impairment loss is continuously recognized are

not subject to a collective impairment assessment.

The amount of impairment loss is measured as the difference between the asset’s carrying amount and the present value of estimated future cash flows

(excluding future credit loss that are not yet incurred), which is discounted at the financial asset’s original effective interest rate. The amount of loss is

reduced directly from the asset’s carrying value or by using a provision account, and it is recognized in profit or loss.

For loans and receivables or HTM financial assets with the variable interest rate, the current effective interest rate, which is determined under the

contract, is used to measure impairment loss.

Whether collateral inflow is probable or not, the present value of the estimated future cash flows of collateralized financial asset is calculated as the

cash flows, which may arise from collateral inflow, less costs of acquiring and selling collateral.

Future cash flows for a group of financial assets that are collectively assessed for impairment are estimated based on the historical loss experience of

assets having credit risk characteristics, similar to those in the group of financial assets. If historical loss experience is not enough or not existed, similar

corporation’s comparable historical loss experience of a group of financial assets is used. The effects of current conditions that do not have an impact in



WOORI BANK

the historical loss experience period are reflected, and the historical loss experience is adjusted based on the current observable data in order to remove

the effects of conditions that currently do not exist but existed in the historical loss experience period.

For a collective assessment for impairment, financial assets are classified based on similar credit risk characteristics (i.e. based on the assessment of credit

risk or grading process, considering asset type, industry, geographical location, collateral type, past-due status, and other relevant elements) indicating

the debtor’s ability to pay all amounts of debt under the contractual terms. These characteristics are relevant to the estimation of future cash flows for

groups of such assets as being indicative of the debtors’ ability to pay all amounts due according to the contractual terms of the assets being evaluated.

When estimating the changes in future cash flows, observable data (i.e. an impairment loss arisen from a pool of assets, an unemployment rate indicating

the loss and its parameter, asset price, product price, or payment status) needs to be consistently reflected. The methodology and assumptions used for

estimating future cash flows are reviewed regularly to reduce the difference between loss estimates and actual loss experience.

When the amount of impairment loss decreases subsequently and the decrease is related to an event occurred after the impairment is recognized (i.e.

an improvement in the debtor’s credit rating), the previously recognized impairment loss is reversed directly from or by adjusting the provision account.

The reversed amount is recognized in profit or loss of current period.

2) AFS financial assets

The Group assesses at the end of each reporting period whether there is objective evidence that the Group’s financial asset (or a group of financial

assets) is impaired. For debt securities, the Group uses the criteria refer to (9)-1) above.

For equity investments classified as AFS financial assets, a significant or prolonged decline in the fair value below the cost is considered objective

evidence of impairment. When the fair value of an AFS financial asset is decreased below its acquisition cost which is considered an objective evidence

of impairment, the cumulative loss, amounting to the difference between the acquisition cost and the current fair value, is removed from other

comprehensive income and recognized in profit or loss as an impairment loss. For AFS equity instruments, impairment losses recognized in profit or

loss on equity instruments are not reversed in profit or loss. Meanwhile, when the fair value of AFS debt instrument increases in a subsequent period

and the evidence is objectively related to an event occurred after recognizing the impairment loss, the impairment loss is reversed and recognized in

profit or loss.

(10) Investment properties

The Group classifies the property held to earn rental or capital gain purpose as investment property. The investment property is measured at its cost

at the initial recognition plus transaction costs arising at acquisition and after recognition, and is presented at cost less accumulated depreciation and

accumulated impairment loss as carrying value.

Subsequent costs are recognized in carrying amount of an asset or as an asset if it is probable that future economic benefits associated with the assets

will flow into the Group and the cost of an asset can be measured reliably. Routine maintenance and repairs are expensed as incurred.

While land is not depreciated, all other investment properties is depreciated based on the respective assets’ estimated useful lives using the straight-line

method. The estimated useful lives, residual values and depreciation method are reviewed at the end of each reporting period, with the effect of any

changes in estimate accounted for on a prospective basis.

(11) Premises and equipment

Premises and equipment are stated at cost less subsequent accumulated depreciation and accumulated impairment losses. The cost of an item of

premises and equipment is directly attributable to their purchase or construction, which includes any costs directly attributable to bringing the asset

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to the location and condition necessary for it to be capable of operating in the manner intended by management. It also includes the initial estimate

of the costs of dismantling and removing the item and restoring the site on which it is located. However, under K-IFRS 1101 ‘First-time Adoption of

International Financial Reporting Standards”, certain premises and equipment such as land and buildings were measured at fair value, which is regarded

as deemed cost, at the date of transition to K-IFRS.

Subsequent costs to replace part of the premises and equipment are recognized in carrying amount of an asset or as an asset if it is probable that the

future economic benefits associated with the assets will flow into the Group and the cost of an asset can be measured reliably. The carrying amount of

the replaced part is eliminated from the books. Routine maintenance and repairs are expensed as incurred.

Premises and equipment are depreciated on a straight-line basis on the estimated economic useful lives as follows:

Classification Useful life

Buildings used for business purpose 40 years

Structures in leased office 5 years

Movable properties for business purposes 5 years

Leased assets Of the same kind or with similar useful lives

The Group reviews the depreciation method, the estimated useful lives and residual values of fixed assets at the end of each annual reporting period.

If expectations differ from previous estimates, the changes are accounted for as a change in an accounting estimate. When the carrying amount of a

fixed asset exceeds the estimated recoverable amount, the carrying amount of such asset is reduced to the recoverable amount.

(12) Intangible assets

1) Goodwill

Any excess of the cost of acquisition over the Group’s share of the net fair value of the identifiable assets acquired, liabilities and contingent liabilities

assumed at the date of acquisition is recognized as goodwill. Such goodwill is classified as intangible assets.

A cash-generating unit to which goodwill has been allocated is tested for impairment annually, or more frequently when there is indication that the unit

may be impaired. If the recoverable amount of the cash-generating unit is less than its carrying amount, the impairment loss is allocated first to reduce

the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit on a pro-rata basis based on the carrying amount of

each asset in the unit. Any impairment loss for goodwill is recognized directly in profit or loss in the consolidated statement of comprehensive income.

An impairment loss recognized for goodwill is not reversed in subsequent periods.

On disposal of the relevant cash-generating unit, the attributable amount of goodwill is included in the determination of the profit or loss on disposal.

2) Development costs, patents and other intangible assets

Intangible assets are stated at the manufacturing cost or acquisition cost plus additional incidental expenses less accumulated amortization and

accumulated impairment losses.

Expenditures incurred in conjunction with development of new products or technology, in which the elements of costs can be individually identified

and future economic benefits are probably expected, are capitalized as development costs under intangible assets. If the Group donates assets, such as

buildings, to the government and is given a right to use or benefit from the assets, the donated assets are recorded as beneficial donated assets under

intangible assets.



WOORI BANK

Intangible assets are amortized using the straight-line method over the estimated useful lives, which are five years for development costs, contractual

contact period for the beneficial donated assets, ten years for patents and five years for other intangible assets.

The estimated useful life and amortization method are reviewed at the end of each reporting period. If expectations differ from previous estimates, the

changes are accounted for as a change in an accounting estimate.

Intangible assets, including goodwill and membership, with indefinite useful lives are tested for impairment annually. All other assets are tested for

impairment when there is an objective indication that the carrying amount may not be recoverable, and if the indication exists, the Group estimates

the recoverable amount

(13) Impairment of non-monetary assets

Impairment loss is recognized carrying amount exceeding recoverable amount, recoverable amount is the higher of value in use and net fair value less

costs to sell.

For impairment testing purposes, assets are allocated to each of the Group’s cash-generating units (“CGU”).

Non-monetary assets, except for goodwill impaired, are reviewed in subsequent periods for potential recovery of value and reversal or impairment

previously recognized, at the end of each reporting period.

(14) Lease

A lease is classified as a financial lease, if it transfers substantially all the risks and rewards incidental to ownership with the lessee. Assets held under

finance leases are initially recognized as assets of the Group at their fair value at the inception of the lease or, if lower, at the present value of the

minimum lease payments. The corresponding liability to the lessor is included in the statement of financial position as a finance lease obligation. Lease

obligation deducting related financial cost is recognized as a financial lease liability. Interest factor included in financial cost is reflected in comprehensive

income statements to achieve a constant rate of interest on the remaining balance of the liability.

All other leases are classified as operating leases and are not recognized as an asset in the statement of financial position. Operating lease payments are

recognized as expenses amortized over the lease period using the straight-line method after deducting any incentives from the lessor.

(15) Derivative instruments and hedging activities

Derivatives are initially recognized at fair value at the date the derivative contract is entered into, and they are subsequently remeasured to their fair

value at the end of each reporting period. The resulting gain or loss is recognized in profit or loss immediately unless the derivative is designated and

effective as a hedging instrument.

The Group designates certain hedging instrument to:

hedge of the exposure to changes in fair value of a recognized asset or liability or an unrecognized firm commitment (fair value hedge);

hedge of the exposure to variability in cash flows that is attributable to a particular risk associated with a recognized asset or liability or a highly probable

forecast transaction (cash flow hedge); and

hedge of a net investment in a foreign operation.

At the inception of the hedge relationship, the Group documents the relationship between the hedging instrument and the hedged item, along with its

risk management objectives and its strategy for undertaking various hedge transactions. Furthermore, at the inception of the hedge and on an ongoing

basis, the Company documents whether the hedging instrument is highly effective in offsetting changes in fair values or cash flows of the hedged item.

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a) Fair value hedges

Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recognized in profit or loss immediately, together

with any changes in the fair value of the hedged asset or liability that are attributable to the hedged risk. Hedge accounting is discontinued when the

Company revokes the hedging relationship, when the hedging instrument no longer qualifies for hedge accounting and the fair value adjustment to

the carrying amount of the hedged item is amortized to profit or loss from that date to maturity using the effective interest method.

b) Cash flow hedges

The effective portion of changes in the fair value of derivatives that are designated and qualify as cash flow hedges is recognized in other comprehensive

income. The gain or loss relating to the ineffective portion is recognized immediately in profit or loss. Amounts previously recognized in other

comprehensive income and accumulated in equity are reclassified to profit or loss in the periods when the hedged item is recognized in profit or loss.

Hedge accounting is discontinued when the hedging instrument expires or is sold, or it no longer qualifies for hedge accounting, and any gain or loss

accumulated in equity at that time remains in equity and is recognized when the forecast transaction is ultimately recognized in profit or loss. When a

forecasted transaction is no longer expected to occur, the gain or loss accumulated in equity is recognized immediately in profit or loss.

3) Hedge of a net investment in foreign operations

Hedges of net investments in foreign operations are accounted for similarly to cash flow hedges. Any gain or loss on the hedging instrument relating

to the effective portion of the hedge is recognized in equity while the gain or loss relating to the ineffective portion is recognized immediately in profit

or loss. The cumulated gain and loss in other comprehensive income is reclassified from equity to profit or loss on the disposal or partial disposal of the

foreign operations.

(16) Non-current assets held for sale group

The Group classifies a non-current asset (or disposal group) as held for sale if its carrying amount will be recovered principally through a sale transaction

rather than through continuing use. The Group measures a non-current asset (or disposal group) classified as held for sale at the lower of its carrying

amount and fair value less costs to sell.

(17) Compound financial instruments

The component parts of compound financial instruments issued by the Group are classified separately as financial liabilities and equity in accordance

with the substance of the contractual arrangement. At the date of issue, the fair value of the liability component is estimated using the prevailing market

interest rate for a similar non-convertible instrument. This amount is recorded as a liability on an amortised cost basis using the effective interest method

until extinguished upon conversion or at the instrument’s maturity date. The equity component is determined by deducting the amount of the liability

component from the fair value of the compound instrument as a whole. This is recognised and included in equity and is not subsequently remeasured.

The transaction cost related to the issuance of compound financial instrument is allocated to the liability and equity component proportionately to the

amounts issued.

(18) Provisions

The Group recognizes provisions if it has a present or contractual obligations as a result of a past event, it is probable that an outflow of resources will

be required to settle the obligation, and the amount of the obligation is reliably estimated. Provisions are not recognized for future operating losses.

The Group recognizes provisions related to the unused portion of point rewards earned by credit card customers, payment guarantees and litigations.



WOORI BANK

Where the Group is required to restore a leased property that is used as a branch, to an agreed condition after the contractual term expires, the present

value of expected amounts to be used to dispose, decommission or repair the facilities as an asset retirement obligation.

Where there are a number of similar obligations, the probability that an outflow will be required in settlement is determined by considering the

obligations as a whole. Although the likelihood of outflow for any one item may be small, if it is probable that some outflow of resources will be needed

to settle the obligations as a whole, a provision is recognized.

Provisions are recognized when the Company has a present obligation as a result of a past event, it is probable that the Company will be required to

settle the obligation, and a reliable estimate can be made of the amount of the obligation.

The amount recognized as a provision is the present value of the best estimate of the consideration required to settle the present obligation at the end

of the reporting period. The discount rate used in calculating the present value is the pre-tax discount rate taken into accounts the inherent risks and

time value of the obligation, in the market. The increase in provisions due to the passage of time is recognized as interest expense.

(19) Equity capital

The Company recognizes common stock as equity and redeemable preferred stocks as a liability. Direct expenses related to the issuance of new shares

or options are recognized as a deduction from equity, net of any tax effects.

If the Group reacquires its own equity instruments, those instruments (“treasury shares”) are presented as a deduction from total equity. The gain or

loss on the purchase, sale, issue, or cancellation of treasury shares is not recognized in profit or loss but recognized directly in equity.

(20) Financial guarantee contracts

A financial guarantee contract refers to the contract that requires the issuer to pay the specified amounts to reimburse the holder for a loss because the

specified debtor fails to make payment when due under original or revised contractual terms of debt instruments. The financial guarantee contract is

measured on initial recognition at the fair value, and the fair value is amortized over the financial guarantee contractual term.

After initial recognition, financial guarantee contract is measured at the higher of:

the present value of expected payment amount due to the financial guarantee contract

initially recognized amount of financial guarantee contract less recognized accumulated amortization in accordance with K-IFRS 1018 ‘Revenue’.

(21) Interest income and expense recognition

The Group recognizes interest income and expenses from HTM financial assets measured at amortized cost, loans and receivables, and other financial

liabilities on an accrual basis using the effective interest method.

Effective interest method is the method of calculating the amortized cost of financial assets or liabilities and allocating the interest income or expense

over the relevant period. The effective interest rate reconciles the expected future cash in and out through the expected life of financial instruments or

shorter period if appropriate, and net carrying value of financial assets or liabilities. When calculating the effective interest rate, the group estimates

future cash flows considering all contractual terms of the financial instruments such as prepayment option, except the loss on future credit risk. Also,

effective interest rate calculation reflects commission, points (only responsible for the effective interest rate) that are paid or earned between contracting

parties, transaction costs, and other premiums and discounts.

(22) Dividends

Dividends are recognized as liabilities during in the month it is approved by the shareholder.

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(23) Employee benefits

1) Short-term employee benefits

The Group recognizes the undiscounted amount of short-term employee benefits expecting payment in exchange for the services when the employee

renders services. The Group, also, recognizes relevant liabilities and expenses for the accumulating compensated absence when the services that

increase the future paid-leave right are rendered. Expenses and liabilities for the accumulated absence are also recognized in the consideration for

constructive obligation when the Group pays a bonus.

2) Retirement benefits

The Group offers a wide variety of retirement benefit plans and, in general, it raises the amounts computed based on actuarial assumptions through

the payment regarding additional fund in which the insurance company or fiduciary manages.

The Group operates both defined benefit and defined contribution plans. The defined contribution plan is the retirement benefit plans that pay the

fixed amount of bonus to other fund organizations. The Group does not have any legal or constructive obligations to make further payment even if it

does not pay all employee benefits relating to employee service rendered to the Group in the current and prior periods.

For defined benefit plans, the liability recognized in the statement of financial position is the present value of the current defined benefit obligation at

the date of the statement of financial position, less the fair value of plan assets, adjusted for unrecognized past service cost.

The defined benefit obligation is calculated on an annual basis by independent actuaries according to the projected unit credit method. The present

value of defined benefit obligations is expressed in a currency in which retirement benefits will be paid and is calculated by discounting expected future

cash outflows with the interest rate of high quality corporate bonds which maturity is similar to the payment date of retirement benefit obligations.

Actuarial gains and losses arising from the difference between changes in actuarial assumptions and what has actually occurred are recognized in profit

or loss in the period in which they occur.

Past service cost is reflected immediately in profit or loss. However, past service cost is recognized as an expense on a straight-line basis over the vesting

period when changes in retirement pension plan continues to require employees to remain on work duties during the vesting period.

Being connected to defined contribution plans, the Group mandatorily, contractually, or voluntarily pays contributions to pension insurance plans, which

are managed publicly or privately. The Group has no payment obligations after contributions are paid. Contributions are recognized as employee benefit

expense at a due date for payment. Prepaid contributions are recognized a decrease in future payment due to the excessive contributions or available

refund as assets.

3) Termination benefits

Termination benefits are paid when employment is terminated by the Group before the normal retirement date or an employee accepts voluntary

retirement in exchange for benefits. The Group recognizes termination benefits when employment is terminated based on detailed formal plans or

voluntary retirement is encouraged, providing termination benefits. Termination benefits are discounted at present value when they are due more than

12 months after the reporting date.

4) Profit-sharing and bonus plan

The Group recognizes appropriate provisions and expenses considering profits related shareholders of the Group after adjusting a specific sum of

amounts. The Group recognizes contractual obligations and obligations as a result of a past practice as provisions.



WOORI BANK

(24) Income tax expense

Income tax comprises current tax and deferred tax. Income tax is recognized in profit or loss except to the extent that it relates to items recognized in

other comprehensive income or directly in equity.

Current tax expenses are calculated based on the basis of tax laws that have been enacted by the reporting date or substantively enacted in the

countries where the Group operates and generates taxable income.

Deferred tax is recognized on temporary differences between the carrying amounts of assets and liabilities in the financial statements and the

corresponding tax bases used in the computation of taxable profit. However, the Company does not recognize deferred tax arising on the initial

recognition of an asset or a liability in a transaction that is not a business combination and that, at the time of the transaction, affects neither accounting

profit nor taxable profit. Deferred taxes are determined using tax rates and laws that have been enacted by the reporting date —the date when the

relevant deferred tax assets are realized and the deferred tax liabilities are settled— or substantially enacted.

Deferred income tax assets are recognized if future taxable profits are probable so that the temporary differences can be used.

Deferred income tax liabilities are provided on temporary differences arising on investments in subsidiaries and associates, except where the timing of

the reversal of the temporary difference is controlled by the Group and it is probable that the temporary difference will not reverse in the foreseeable

future.

Deferred income tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets against current tax liabilities and

when the deferred income taxes assets and liabilities relate to income taxes levied by the same taxation authority on either the taxable entity or different

taxable entities where there is an intention either to settle the balances on a net basis or to realize the asset and settle the liability simultaneously.

(25) Origination fees and costs

The commission, which is part of the effective interest rate of loans, is accounted for deferred origination fees. Incremental cost related to the acquisition

or disposal is accounted for deferred origination costs, and it is amortized on the effective interest method and included in interest revenues on loans.

(26) Loan sales

When the Group disposes of loans based on valuations performed by a third party independent specialist (institution) using a reasonable and rational

method, the difference between the book value and the selling price is recognized as disposal gains and losses.

(27) Earnings per share (“EPS”)

Basic earnings per share is calculated by dividing net income from the statement of comprehensive income by the number of outstanding common

shares, and diluted EPS is calculated by adjusting earnings and number of shares for the effects of all dilutive potential common shares.

(28) Accounting developments

The Group has not applied the following new and revised K-IFRS that have been issued but are not yet effective:

Amendments to K-IFRS 1107 ‘Disclosures – Transfers of Financial Assets’

The amendments to K-IFRS 1107 increase the disclosure requirements for transactions involving transfers of financial assets. These amendments are

intended to provide greater transparency around risk exposures when a financial asset is transferred but the transferor retains some level of continuing

exposure in the asset. It will be applied for annual periods beginning on or after July 1, 2011.

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Amendments to K-IFRS 1012 ‘Deferred Tax – Recovery of Underlying Assets’

Under the amendments, investment properties that are measured using the fair value model in accordance with K-IFRS 1040 Investment Property and

property and equipment that are measured using revaluation model in accordance with K-IFRS 1016 Property, plant and equipment are presumed to

be recovered through sale for the purposes of measuring deferred taxes, unless the presumption is rebutted in certain circumstances. It will be applied

for annual periods beginning on or after January 1, 2011.

Amendments to K-IFRS 1019 – ‘Employee Benefits’

The amendments to K-IFRS 1019 change the accounting for defined benefit plans and termination benefits. The most significant change relates to the

accounting for changes in defined benefit obligations and plan assets when they occur, and hence eliminate the ‘corridor approach’ permitted under

the previous version of K-IFRS 1019 and accelerate the recognition of past service costs. The amendments to K-IFRS 1019 are effective for annual

periods beginning on or after January 1, 2013.

Legislation of K-IFRS 1113 ‘Fair Value Measurement’

K-IFRS 1113 establishes a single source of guidance for fair value measurements and disclosures about fair value measurements. K-IFRS 1113 is effective

for annual periods beginning on or after January 1, 2013, with earlier application permitted.

The Group anticipates that the amendments listed above may not have significant impact on the Group’s consolidated financial statements.

(29) Others

1) Reclassification of gains (losses) on beneficiary certificates

For the year ended December 31, 2010 and the six months ended June 30, 2011, the Bank had classified its dividends from beneficiary certificates and

gains (losses) on disposal of beneficiary certificates as other interest income on beneficiary certificates. Subsequent to the period, the Bank changed

its classification for the dividends to dividend income on beneficiary certificates and gains (losses) on disposal of beneficiary certificates to and gains

(losses) of disposal of AFS, respectively.

The effects of change for the years ended December 31, 2010 and for the six months ended June 30, 2011 are as follows (Korean Won in millions):

2011 2010

Three months ended March 31

Six months ended June 30



Net interest income \ (28,759) \ (85,151) \ (35,635) \ (91,232)

Dividend income 2,139 11,352 4,484 19,299

Gain (loss) on AFS financial assets

26,620 73,79931,151 71,933

As a result of the reclassification as discussed above, the Bank retroactively adjusted the financial statements for the prior period and such reclassification

did not have an effect on net assets and net income of the Bank.

2) Impairment loss on Kumho Industrial Co., Ltd.

According to the previous GAAP (“K-GAAP”), Statements of Korean Accounting Standards No. 2 ‘Interim Financial Reporting’, the impairment loss on

financial assets should be recognized on a cumulative basis when the fair value of the investment is decreased more than 30 percent of the acquisition

cost. During the 2010 interim period, \33,083 million of impairment loss on the investment in Kumho Industrial Co., Ltd. was recognized due to



WOORI BANK

the decrease in its fair value more than 30 percent of the acquisition cost. The impairment loss recognized during the interim period was reversed for

the year ended December 31, 2010 due to the increase in the fair value of Kumho Industrial Co., Ltd. in a subsequent period in accordance with the

previous GAAP.

Based on K-IFRS adopted from the fiscal year beginning on January 1, 2010, the impairment losses on AFS financial assets recognized during the interim

period cannot be reassessed on a cumulative basis. As such, the impairment loss on the financial assets recognized during the interim period due to

the decrease in fair value of the AFS financial assets should not be reversed through profit or loss when the fair value of the AFS financial assets is

increased subsequently. The impairment losses amounting to any increase in the fair value of the AFS financial assets in a subsequent period should be

recognized as other comprehensive income.

3) Reclassification of due from banks in foreign currencies

The Bank loaned to Woori Bank China (Limited) during January 2011 and recognized the loan as due from banks in foreign currencies as of March 31,

2011 and June 30, 2011, respectively. As of September 31, 2011, the Bank reclassifies the loans from to inter-bank loans in foreign currencies.

The effects of change as of March 31 and June 30, 2011 are as follows (Korean Won in millions):

2011

As of March 31 As of June 30

Decrease in due from banks \ (22,144) \ (86,248)

Increase in inter-bank loans 22,144 86,248

As a result of reclassification, the Bank retroactively adjusted the financial statements for the prior period and such reclassification did not have an effect

on net assets and net income of the Bank.

4) Change in the recognition of gains (losses) on transactions of derivatives

As for the application of K-GAAP, the Bank recorded gains (losses) on transactions of derivatives that for the year ended December 31, 2010, the Bank

recognized gains (losses) on transactions of derivatives such as interest swap, currency swap and commodity swap based on the gross amount of the

assets (liabilities) and the settlement amount, respectively. The Bank changed its recognition of gains (losses) on such transactions based on the net of

the assets (liabilities) and settlement amount.

The effects of change for the years ended December 31, 2010 under K-GAAP are as follows (Korean Won in millions):

2010



Nine months ended September 30

The year ended December 31

Decrease in gains on transactions of derivatives

\ (71,321) \ (120,273) \ (208,800) \ (262,991)

Decrease in losses on transactions of derivatives

(71,321) (120,273) (208,800) (262,991)

As a result of the changes as discussed above, such changes did not have an effect on net assets and net income of the Bank for the year ended

December 31, 2010.

Also, as for the application of credit default swap under K-GAAP, the Bank recorded gains (losses) on transactions of derivatives with total amount of

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assets (liabilities) and settlement amount, respectively. But for the nine months ended September 31, 2010, the Bank changed its recoding with the net

amount of assets (liabilities) and settlement amount.

The effects of change for the three months and six months ended June 30, 2010 are as follows (Korean Won in millions):

2010

Three months ended March 31 Six months ended June 30

Decrease in gains on transactions of derivatives \ (86,007) \ (176,018)

Decrease in losses on transactions of derivatives (86,007) (176,018)

As a result of the changes as discussed above, such changes did not have an effect on net assets and net income of the Bank for the three months

ended March 31, 2010 and six months ended June 30, 2010, respectively.

3. SIGNIFICANT ACCOUNTING ESTIMATES AND ASSUMPTIONS

The significant accounting estimates and assumptions are continually evaluated and are based on historical experience and various factors including

expectations of future events that are considered to be reasonable. Actual results can differ from those estimates based on such definitions. The

following are the accounting estimates and assumptions that have a significant risk of causing changes to the carrying amounts of assets and liabilities

within the next accounting period.

(1) Impairment of goodwill

The Group performs impairment test of goodwill annually or more frequently when there is indication that a CGU may be impaired. Determining

whether goodwill is impaired requires an estimation of the value in use of the CGU to which goodwill has been allocated. The value in use calculation

requires the Group’s management to estimate the future cash flows expected to arise from the CGU and a suitable discount rate in order to calculate

present value.

(2) Fair value of financial instruments

The fair value of financial instruments that are not traded in an active market is determined by using valuation techniques. The Group uses its judgment

to select a variety of valuation techniques and make assumptions based on market conditions existing at the end of each reporting period.

(3) Impairment loss on financial assets

The Company individually recognizes an impairment loss on financial assets by assessing the occurrence of loss events or it assesses impairment for a

group of financial assets with similar credit risk characteristics. Impairment loss for financial assets is the difference between such assets’ carrying value

and the present value of estimated recoverable cash flows. The estimation of future cash flows requires management judgment.

4. RISK MANAGEMENT

The Group’s operating activity is exposed to various financial risks; hence, the Group is required to analyze and assess the level of complex risks,

determine the level of risks to be accepted, or to manage the risks.



WOORI BANK

The Group’s risk management procedure is set for improvement in the quality of assets held and investments by making a decision about how to avoid

or mitigate risks through the identification of the cause of the potential risk and its scope.

The Group takes the approach to minimize the risk and maximize the profit by managing the risks acceptable to the Group and eliminating the excessive

risks of financial instruments. For this, the following procedures are performed: risk recognition, measurement and assessment, control, and monitoring

and reporting.

The risk is managed by the risk management department based on the Group’s policy. The Risk Management Committee of the Group makes the

decision on the risk strategy such as allocation of risk assets and limit settlement.

(1) Credit risk

Credit risk represents the possibility of financial losses incurred when the counterparty fails to fulfill its contractual obligations. The goal of credit risk

management is to maintain the credit risk exposure to a permissible degree and to optimize the rate of return considering such credit risk.

1) Credit risk management

The Group considers the probability of failure in performing the obligation of its counterparties, credit exposure to the counterparty and the related

default risk and the rate of default loss. The Group uses the credit rating model to assess the possibility of counterparty’s default risk; and when

assessing the obligor’s credit grade, the Group utilizes credit grades derived using statistical methods.

2) Credit line management

In order to manage credit risk limit, the Group establishes the appropriate credit line per obligor, company or industry and monitors obligors’ credit line,

total exposures and loan portfolios when approving the loan.

3) Credit risk mitigation

The Group mitigates credit risk resulting from the obligor’s credit condition by using financial and physical collateral, guarantees, netting agreements

and credit derivatives. The Group has adopted the entrapment method acknowledged by BASEL II standards to mitigate its credit risk. Credit risk

mitigation is reflected in qualifying financial collateral, trade receivables, guarantees, residential and commercial real estate and other collaterals. The

Group regularly performs a revaluation of collateral reflecting such credit risk mitigation.

4) Maximum exposure to credit risk

The maximum exposures of financial instruments, excluding equity securities, to credit risk are as follows (Korean Won in millions):

December 31, 2011 December 31, 2010 January 1, 2010

Loans and receivables

Government \ 12,650,614 \ 9,109,902 \ 6,741,707

Banks 9,396,031 7,560,519 9,585,034

Corporation 86,794,609 82,254,643 83,550,636

Consumer 83,067,778 78,705,811 76,971,957

Sub-total 191,909,032 177,630,875 176,849,334

Financial assets at FVTPL

Short-term debt securities (*1) 7,674,574 7,438,099 8,079,782

Derivative assets 3,360,383 3,469,084 3,941,265

Sub-total 11,034,957 10,907,183 12,021,047

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AFS financial assetsAFS debt securities (*1)

9,142,566 9,599,710 6,938,399

HTM financial assetsHTM debt securities

15,400,425 15,920,317 12,527,029

Derivative assetsDerivative assets

326,413 133,224 107,508

Off-balance

Guarantees 22,516,325 23,451,380 24,510,729

Loan commitments 84,708,979 79,895,333 74,519,965

Sub-total 107,225,304 103,346,713 99,030,694

Total \ 335,038,697 \ 317,538,022 \ 307,474,011

(*1) Financial assets at FVTPL and AFS financial assets represents debt securities amount only (Notes 7 and 8).

5) Credit risk of loans and receivables

The credit risk of loans and receivables by loan conditions are as follows (Unit: Korean Won in millions):

December 31, 2011

Korean treasury and government agencies Banks Business Consumers Total

Loans neither overdue nor impaired

\ 12,653,490 \ 9,405,494 \ 86,861,873 \ 81,848,111 \ 190,768,968

Loans overdue but not impaired

313 3,492 158,049 1,116,066 1,277,920

Impaired loans - - 2,693,687 519,856 3,213,543

Gross loans 12,653,803 9,408,986 89,713,609 83,484,033 195,260,431

Provisions for credit losses 3,189 12,955 2,919,000 416,255 3,351,399

Total, net \ 12,650,614 \ 9,396,031 \ 86,794,609 \ 83,067,778 \ 191,909,032

December 31, 2010



\ 9,112,178 \ 7,586,792 \ 80,115,573 \ 77,808,107 \ 174,622,650


832 852 146,458 893,817 1,041,959

Impaired loans 88 1,084 5,741,155 395,211 6,137,538

Gross loans 9,113,098 7,588,728 86,003,186 79,097,135 181,802,147


Total, net \ 9,109,902 \ 7,560,519 \ 82,254,643 \ 78,705,811 \ 177,630,875



WOORI BANK

January 1, 2010



\ 6,751,129 \ 9,608,269 \ 83,263,072 \ 75,990,986 \ 175,613,456


312 1,690 194,478 990,086 1,186,566

Impaired loans - - 2,871,941 363,199 3,235,140

Gross loans 6,751,441 9,609,959 86,329,491 77,344,271 180,035,162


Total, net \ 6,741,707 \ 9,585,034 \ 83,550,636 \ 76,971,957 \ 176,849,334

a) Credit quality of loans and receivables

The Group manages its loans and receivables that are neither overdue nor impaired through an internal rating system. The value of collateral held is

the collateral-allocated amount used when calculating the respective provisions for credit losses. Segregation of credit quality is as follows (Unit: Korean

Won in millions):

<December 31, 2011>

Korean treasury and government

agencies Banks

Corporates

Consumers TotalGeneral busi-

ness

Small and medium sized

enterpriseProject

financing Sub-total

Investment grade (*1)

\ 12,649,787 \ 9,367,466 \ 36,594,727 \ 6,147,829 \ 3,263,526 \ 46,006,082 \ 74,847,192 \ 142,870,527

Non-investment grade (*2)

514 25,075 16,175,665 19,905,531 3,437,740 39,518,936 6,826,818 46,371,343

Total \ 12,650,301 \ 9,392,541 \ 52,770,392 \ 26,053,360 \ 6,701,266 \ 85,525,018 \ 81,674,010 \ 189,241,870

Value of col-lateral

\ - \ 524,238 \ 17,368,373 \ 19,747,568 \ 1,455,022 \ 38,570,963 \ 64,830,655 \ 103,925,856

<December 31, 2010>


agencies Banks

Corporates

Consumers TotalGeneral business


enterpriseProject

financing Sub-total


\ 9,108,483 \ 7,554,243 \ 28,209,022 \ 4,788,600 \ 2,783,096 \ 35,780,718 \ 70,755,792 \ 123,199,236


582 4,424 18,488,052 20,016,304 4,659,331 43,163,687 6,897,380 50,066,073

Total \ 9,109,065 \ 7,558,667 \ 46,697,074 \ 24,804,904 \ 7,442,427 \ 78,944,405 \ 77,653,172 \ 173,265,309

Value of col-lateral

\ 125 \ 371,473 \ 15,608,051 \ 19,231,970 \ 1,348,915 \ 36,188,936 \ 59,004,537 \ 95,565,071

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<January 1, 2010>


agencies Banks

Corporates



enterpriseProject

financing Sub-total


\ 6,741,059 \ 9,582,655 \ 27,668,143 \ 4,039,973 \ 2,655,260 \ 34,363,376 \ 68,876,901 \ 119,563,991


337 693 19,497,070 19,656,877 8,236,877 47,390,824 6,948,264 54,340,118

Total \ 6,741,396 \ 9,583,348 \ 47,165,213 \ 23,696,850 \ 10,892,137 \ 81,754,200 \ 75,825,165 \ 173,904,109

Value of collateral

\ 36,500 \ 273,989 \ 16,136,757 \ 18,227,777 \ 1,336,168 \ 35,700,702 \ 57,081,271 \ 93,092,462

The Group recognized an provision for credit losses, for loans and receivables neither overdue nor impaired, in the amount of \1,527,098 million,

\1,357,341 million and \1,709,347 million as of December 31, 2011, 2010 and January 1, 2010, respectively, which is deducted from the loans and

receivables that are neither overdue nor impaired.(*1) Classified from AAA to BBB for corporates, from level 1 to level 6 for consumers by the internal credit rating(*2) Classified from BBB- to C for corporates, from level 7 to level 10 for consumers by the internal credit rating

b) Aging analysis of loans and receivables

Aging analysis of loans and receivables that are overdue but not impaired are as follows:

The value of collateral held is the collateral-allocated amount used when calculating the respective provisions for credit losses (Unit: Korean Won in

millions).

<December 31, 2010>

Overdue


agencies Banks

Corporates


Small & medium sized

enterpriseProject

financing Sub-total

Less than 30 days \ 313 \ 3,490 \ 38,983 \ 77,174 \ 7,708 \ 123,865 \ 892,779 \ 1,020,447

30 to 60 days - - 1,636 18,508 - 20,144 98,343 118,487

60 to 90 days - - 812 7,162 - 7,974 59,339 67,313

Total \ 313 \ 3,490 \ 41,431 \ 102,844 \ 7,708 \ 151,983 \ 1,050,461 \ 1,206,247

Value of collateral \ - \ - \ 4,118 \ 80,451 \ - \ 84,569 \ 789,797 \ 874,366

<December 31, 2010>

Overdue


agencies Banks

Corporates



enterpriseProject

financing Sub-total

Less than 30 days \ 832 \ 852 \ 39,270 \ 53,172 \ - \ 92,442 \ 749,339 \ 843,465

30 to 60 days - - 12,935 20,745 - 33,680 64,920 98,600

60 to 90 days - - 11,795 2,294 - 14,089 32,966 47,055



WOORI BANK

<December 31, 2010>

Overdue


agencies Banks

Corporates



enterpriseProject

financing Sub-total

Total \ 832 \ 852 \ 64,000 \ 76,211 \ - \ 140,211 \ 847,225 \ 989,120


<January 1, 2010>

Overdue


agencies Banks

Corporates



enterpriseProject

financing Sub-total

Less than 30 days \ 311 \ 1,686 \ 84,310 \ 64,126 \ - \ 148,436 \ 827,460 \ 977,893

30 to 60 days - - 10,721 13,537 - 24,258 61,806 86,064

60 to 90 days - - 8,243 6,202 - 14,445 46,707 61,152

Total \ 311 \ 1,686 \ 103,274 \ 83,865 \ - \ 187,139 \ 935,973 \ 1,125,109


The Group recognized an provisions for credit losses, for loans and receivables that are overdue but not impaired, in the amount of \71,673 million,

\52,839 million and \61,457 as of December 31, 2011, 2010 and January 1, 2010, respectively, which is deducted from the loans and receivables

that are overdue but not impaired.

c) Individually impaired loans and receivables

Impaired loans and receivables are as follows (Unit: Korean Won in millions):

The collateral value held is the collateral-allocated amount used when calculating the respective provision for loan loss.

<December 31, 2011>


agencies Banks

Corporates


ness


enterpriseProject

financing Sub-total

Impaired loans \ - \ - \ 618,177 \ 393,998 \ 105,433 \ 1,117,608 \ 343,307 \ 1,460,915

Value of collateral - - 508,596 485,296 60,000 1,053,892 341,576 1,395,468

<December 31, 2010>


agencies Banks

Corporates


Small & me-dium sized enterprise

Project financing Sub-total

Impaired loans \ 5 \ 1,000 \ 1,793,220 \ 342,096 \ 1,034,711 \ 3,170,027 \ 205,414 \ 3,376,446

Value of collateral - 1,083 1,187,911 379,464 110,374 1,677,749 195,998 1,874,830

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<January 1, 2010>


agencies Banks

Corporates


ness


enterpriseProject

financing Sub-total

Impaired loans \ - \ - \ 1,129,697 \ 320,516 \ 159,084 \ 1,609,297 \ 210,819 \ 1,820,116

Value of collateral - - 614,356 356,803 25,872 997,031 177,760 1,174,791

The Group recognized an provision for credit losses, for impaired loans and receivables, in the amount of \1,752,628 million, \2,761,092 million and

\1,415,024 as of December 31, 2011, 2010 and January 1, 2010, respectively, which is deducted from the impaired loans and receivables.

6) Credit quality of debt securities

The Group manages debt securities based on the external credit rating. Credit soundness of debt securities on the basis of External Credit Assessment

Institution (“ECAI”)’s rating is as follows (Unit: Korean Won in millions):

December 31, 2011

Held for trading

Otherat FVTPL

AFS securities

HTM securities Total

AAA \ 3,218,329 \ - \ 7,539,168 \ 14,976,828 \ 25,734,325

AA- ~ AA+ 4,240,423 - 703,079 322,592 5,266,094

BBB- ~ A+ 215,822 - 900,319 101,005 1,217,146

Total \ 7,674,574 \ - \ 9,142,566 \ 15,400,425 \ 32,217,565

December 31, 2010

Heldfor trading

Otherat FVTPL

AFS securities


AAA \ 2,242,260 \ - \ 7,103,144 \ 14,859,515 \ 24,204,919

AA- ~ AA+ 4,379,299 - 795,345 298,658 5,473,302

BBB- ~ A+ 816,540 - 1,701,221 762,139 3,279,900

Default grade - - - 5 5

Total \ 7,438,099 \ - \ 9,599,710 \ 15,920,317 \ 32,958,126

January 1, 2010

Held for trading

Otherat FVTPL

AFS securities


AAA \ 2,726,093 \ - \ 4,834,646 \ 11,794,330 \ 19,355,069

AA- ~ AA+ 4,780,479 - 336,760 275,805 5,393,044

BBB- ~ A+ 480,783 92,427 1,766,993 456,894 2,797,097

Total \ 7,987,355 \ 92,427 \ 6,938,399 \ 12,527,029 \ 27,545,210

(*) Held for trading, other at FVTPL and AFS represents debt securities amount only (Notes 7 and 8).



WOORI BANK

7) Geographical and industrial distribution of credit risk

a) Geographical distribution of credit risk

The geographical distribution of credit risk of financial asset is as follows (Unit: Korean Won in millions):

December 31, 2011

Korea USA UK Japan China Others Total


Korean treasury and government agencies

\ 12,650,614 \ - \ - \ - \ - \ - \ 12,650,614

Banks 6,474,989 263,478 377,874 10,311 581,424 1,687,955 9,396,031

Corporates 81,072,710 671,006 433,509 492,721 1,696,539 2,428,124 86,794,609

Consumers 82,246,727 778,639 16 32,022 1,844 8,530 83,067,778

Sub-total 182,445,040 1,713,123 811,399 535,054 2,279,807 4,124,609 191,909,032


Short-term debt securities

7,674,574 - - - - - 7,674,574

AFS financial assets

AFS debt securities

9,012,716 81,030 - - 34,035 14,785 9,142,566

HTM finan-cial assets

HTM debt securities

15,297,458 1,967 - - 1,817 99,183 15,400,425

Off-balance

Guarantee 20,540,769 210,345 108,222 51,742 181,996 1,423,251 22,516,325

Loan commitments

84,033,075 5,597 - 19,488 450,194 200,625 84,708,979

Sub-total 104,573,844 215,942 108,222 71,230 632,190 1,623,876 107,225,304

Total \ 319,003,632 \ 2,012,062 \ 919,621 \ 606,284 \ 2,947,849 \ 5,862,453 \ 331,351,901

December 31, 2010




\ 9,109,902 \ - \ - \ - \ - \ - \ 9,109,902

Banks 5,695,968 418,506 152,105 4,505 384,714 904,721 7,560,519

Corporates 76,222,064 788,743 537,516 536,438 1,575,885 2,593,997 82,254,643

Consumers 77,677,166 819,831 6 27,924 3,099 177,785 78,705,811

Sub-total 168,705,100 2,027,080 689,627 568,867 1,963,698 3,676,503 177,630,875



7,438,099 - - - - - 7,438,099


AFS debt securi-ties

9,465,409 108,872 - - 15,503 9,926 9,599,710

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HTM debt securities

15,800,202 2,262 - - - 117,853 15,920,317

Off-balance

Guarantee 22,478,664 115,514 68,634 48,057 164,791 575,720 23,451,380

Loan commitments

79,385,050 56,945 - 1,593 399,126 52,619 79,895,333

Sub-total 101,863,714 172,459 68,634 49,650 563,917 628,339 103,346,713

Total \ 303,272,524 \ 2,310,673 \ 758,261 \ 618,517 \ 2,543,118 \ 4,432,621 \ 313,935,714

January 1, 2010




\ 6,738,784 \ - \ - \ - \ - \ 2,923 \ 6,741,707

Banks 8,232,638 360,588 91,372 6,381 215,282 678,774 9,585,035

Corporates 77,325,048 888,586 741,505 496,560 1,314,044 2,784,892 83,550,635

Consumers 75,991,702 949,142 8 23,548 3,359 4,198 76,971,957

Sub-total 168,288,172 2,198,316 832,885 526,489 1,532,685 3,470,787 176,849,334



8,079,782 - - - - - 8,079,782


AFS debt securities

6,824,593 112,662 - - - 1,144 6,938,399


HTM debt securities

12,405,658 2,809 - - - 118,562 12,527,029

Off-balance

Guarantee 23,631,700 100,189 67,104 66,085 106,022 539,629 24,510,729

Loan commitments

73,972,467 16,539 - 30,622 403,782 96,555 74,519,965

Sub-total 97,604,167 116,728 67,104 96,707 509,804 636,184 99,030,694

Total \ 293,202,372 \ 2,430,515 \ 899,989 \ 623,196 \ 2,042,489 \ 4,226,677 \ 303,425,238



WOORI BANK

b) Industrial distribution of credit risk

The industrial distribution of credit risk of financial asset is as follows (Unit: Korean Won in millions):

December 31, 2011

Service Manufacturing Others Total



\ 12,587,950 \ - \ 62,664 \ 12,650,614

Banks 8,234,509 76,700 1,084,822 9,396,031

Corporates 39,507,016 35,405,638 11,881,955 86,794,609

Consumers 7,509,934 1,770,533 73,787,311 83,067,778

Sub-total 67,839,409 37,252,871 86,816,752 191,909,032


Short-term debt securities 6,222,279 76,139 1,376,156 7,674,574

AFS securities AFS debt securities 4,787,167 20,436 4,334,963 9,142,566

HTM securities HTM debt securities 9,622,920 - 5,777,505 15,400,425

Off-balance

Guarantee 7,705,487 11,629,194 3,181,644 22,516,325

Loan commitments 20,040,351 26,061,884 38,606,744 84,708,979

Sub-total 27,745,838 37,691,078 41,788,388 107,225,304

Total \ 116,217,613 \ 75,040,524 \ 140,093,764 \ 331,351,901

December 31, 2010


Korean treasury and govern-ment agencies

\ 8,472,457 \ - \ 637,445 \ 9,109,902

Banks 6,623,787 1,525 935,207 7,560,519

Corporates 39,759,282 31,651,178 10,844,183 82,254,643

Consumers 7,711,877 1,761,400 69,232,534 78,705,811

Sub-total 62,567,403 33,414,103 81,649,369 177,630,875




HTM securities HTM debt securities 10,587,208 - 5,333,109 15,920,317

Off-balanceGuarantee 6,441,565 13,209,338 3,800,477 23,451,380


Sub-total 23,460,762 39,886,878 39,999,073 103,346,713

Total \ 106,356,280 \ 73,390,088 \ 134,189,346 \ 313,935,714

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\ 6,455,102 \ - \ 286,605 \ 6,741,707

Banks 6,885,865 69 2,699,101 9,585,035

Corporates 41,620,308 31,098,082 10,832,245 83,550,635

Consumers 8,134,534 1,876,931 66,960,492 76,971,957

Sub-total 63,095,809 32,975,082 80,778,443 176,849,334




HTM securities HTM debt securities 10,582,299 5,758 1,938,972 12,527,029

Off-balanceGuarantee 5,857,017 14,689,322 3,964,390 24,510,729


Sub-total 21,840,294 39,603,284 37,587,116 99,030,694

Total \ 103,229,376 \ 72,756,571 \ 127,439,291 \ 303,425,238

(2) Market risk

Market risk is the possible risk of loss arising from trading activities in the volatility of market factors such as interest rates, stock prices, and foreign

exchange rates. Market risk occurs as a result of changes in the interest rates and foreign exchange rates for financial instruments that are not yet

settled, and all contracts are exposed to a certain level of volatility according to the interest rates, credit spreads, foreign exchange rates and the price

of equity securities.

1) Market risk management

For trading activities, the Group avoids, bears or mitigates risks by identifying the underlying source of risks, measuring parameters and evaluating their

appropriateness.

2) Market risk measurement

The Group uses both standard-based and internal model-based approach to measure market risk. A standard risk measurement model is used to

calculate individual market risk of owned capital while internal risk measurement model is used to calculate general capital market risk and it is used

to measure internal risk management measure. The Risk Management Committee allocates owned capital to market risk. The Risk Management

department measures the Value at Risk (“VaR”, maximum losses) limit by department and risk factor and loss limit on a daily basis and reports regularly

to the Risk Management committee.

3) Risk Control

At the beginning of each year, the Risk Management Committee establishes the VaR limit, loss limit and risk capital limit for its management purposes.

Limit by investment desk/dealer is independently managed to the extent of the limit given to each departments of the Group and the limit by investment

and loss cut is managed by risk management personnel with the department.



WOORI BANK

4) Sensitivity analysis of market risk

The Group performs sensitivity analysis for both trading and non-trading activities. For trading activities, the Group uses a VaR model which uses

certain assumptions of possible fluctuations in market condition and, by conducting simulations of gains and losses, under which the model estimates

the maximum losses that may occur. A VaR model predicts based on statistics of possible losses on the portfolio at a certain period currently or in the

future. It indicates the maximum expected loss with at least 99% credibility. In short, there exists a one percent possibility that the actual loss might

exceed the predicted loss generated from the VaR's calculation. The actual results are periodically monitored to examine the validity of the assumptions

and variables and factors that are used in VaR's calculations. However, this approach cannot prevent the loss when the market fluctuation exceeds

expectation.

For non-trading activities, interest rate Earning at Risk (“EaR”) and interest rate VaR, which is based on the simulations of the Net Interest Income (“NII”)

and Net Present Value (“NPV”), are calculated for the Bank and the risk for all other subsidiaries is measured and managed by the interest rate VaR

calculations based on a ‘Gap’ in interest rate per Bank for International Settlements (“BIS”) Framework. NII is a profit based indicator for displaying the

profit changes in short term due to the short term interest change. It will be estimated as subtracting the interest expenses of liabilities from the interest

income of the assets. NPV is an indicator for displaying the risk in economical view according to the unfavorable changes related to the interest rate. It

will be estimated as subtracting the present value of liabilities from the present value of the asset. EaR shows the maximum profit-loss amount, which

indicates the maximum deduction amount caused by the unfavorable changes related to the interest rate of certain period of time. Interest rate VaR

shows the potential maximum loss generated by the unfavorable changes during certain period of present or future.

a) Trading activities

The minimum, maximum and average VaR for the year ended December 31, 2011 and 2010, respectively, and the VaR as of December 31, 2011 and

2010, respectively, are as follows (Unit: Korean Won in millions):

Risk factor

For the year ended December 31, 2011


As of December

31, 2011 Average Maximum Minimum

As of December 31, 2010 Average Maximum Minimum

Interest rate \ 5,066 \ 5,113 \ 7,471 \ 2,878 \ 3,770 \ 12,321 \ 25,873 \ 3,172

Stock price 2,978 3,947 5,608 1,666 1,518 3,455 10,775 1,073

Foreign currencies 2,745 3,332 6,378 1,307 3,672 8,859 23,970 2,260

Commodity 3 134 773 2 13 728 2,733 9

Total risk 4,402 5,724 9,304 3,331 3,520 6,478 19,615 2,817

b) Non-trading activities

The NII and NPV are calculated, respectively, by using the simulation method for the Group and scenario responding to the interest rate (“IR”) changes

are as follows (Korean Won in millions):

Name of scenario


NII NPV NII NPV NII NPV

Base case \ 4,847,266 \ 9,959,770 \ 4,715,011 \ 13,190,185 \ 4,638,545 \ 8,092,752

Base case (Prepay) 4,854,961 9,888,303 4,713,325 13,285,006 4,641,567 8,160,631

IR 100bp up 5,059,011 10,024,446 4,955,261 13,732,678 4,932,985 8,775,274

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Name of scenario


NII NPV NII NPV NII NPV

IR 100bp down 4,591,374 9,919,369 4,440,066 12,599,940 4,328,327 7,356,131

IR 200bp up 5,270,755 10,109,386 5,195,521 14,236,469 5,227,779 9,412,908

IR 200bp down 4,250,407 9,907,990 4,074,044 11,951,146 3,921,553 6,556,123

IR 300bp up 5,482,498 10,210,892 5,435,778 14,708,128 5,522,205 10,011,974

IR 300bp down 3,819,860 9,933,636 3,493,958 11,230,159 3,255,417 5,667,912

The interest rate EaR and the interest rate VaR, calculated, respectively, based on the BIS Framework of the Group excluding the Bank are as follows

(Korean Won in millions):


EaR VaR EaR VaR EaR VaR

\ 79,381 \ 22,429 \ 66,163 \ 19,443 \ 41,777 \ 30,100

5) Other market risk

a) Interest rate risk

The Group estimates and manages risks related to changes in interest rate due to the difference in the sensitivity of interest-yielding assets and the

sensitivity of liabilities. Cash flows of principal amounts and interests from interest bearing assets and liabilities by repricing date are as follows (Unit:

Korean Won in millions):

December 31, 2011

Within 3 months

3 to 6 months

6 to 9 months

9 to 12 months

1 to 5 years

5 years ~ Total

Asset

Loans and receivables \ 136,542,977 \ 22,852,633 \ 3,549,445 \ 4,514,552 \ 8,981,673 \ 5,708,954 \182,150,234

AFS financial assets 1,799,688 1,261,218 1,713,060 2,759,124 4,883,199 422,508 12,838,797

HTM financial assets 3,725,852 2,526,982 1,082,027 887,506 8,071,654 96,229 16,390,250

Total 142,068,517 26,640,833 6,344,532 8,161,182 21,936,526 6,227,691 211,379,281

Liabil-ity

Deposits due to customers

92,306,919 21,104,315 16,723,313 15,300,748 20,644,013 163,498 166,242,806

Borrowings 12,565,728 2,050,186 490,643 2,195,221 2,122,816 681,905 20,106,499

Debentures 4,769,779 1,258,482 1,126,893 2,109,096 11,329,313 1,264,908 21,858,471

Total \ 109,642,426 \ 24,412,983 \ 18,340,849 \ 19,605,065 \ 34,096,142 \ 2,110,311 \ 208,207,776



WOORI BANK

December 31, 2010

Within 3 months

3 to 6 months

6 to 9 months

9 to 12 months

1 to 5 years

5 years ~ Total

Asset

Loans and receivables \ 139,617,197 \ 16,286,993 \ 2,940,288 \ 3,362,392 \ 7,017,360 \ 1,550,453 \ 170,774,683

AFS financial assets 1,490,824 2,166,367 716,838 2,189,157 3,393,975 394,812 10,351,973

HTM financial assets 3,834,126 244,227 946,452 1,931,415 9,389,487 77,012 16,422,719

Total 144,942,147 18,697,587 4,603,578 7,482,964 19,800,822 2,022,277 197,549,375

Liability


89,477,077 18,759,427 16,981,042 14,767,146 18,927,037 145,878 159,057,607

Borrowings 11,799,149 2,237,474 468,668 1,212,670 3,169,692 716,054 19,603,707

Debentures 3,486,354 1,160,386 975,496 1,911,680 13,934,944 3,545,361 25,014,221

Total \ 104,762,580 \ 22,157,287 \ 18,425,206 \ 17,891,496 \ 36,031,673 \ 4,407,293 \ 203,675,535

January 1, 2010

Within 3 months

3 to 6 months

6 to 9 months

9 to 12 months

1 to 5 years

5 years ~ Total

Asset

Loans and receivables \ 152,265,394 \ 11,564,449 \ 3,608,939 \ 3,003,975 \ 8,154,664 \ 1,531,267 \180,128,688

AFS financial assets 610,065 526,524 665,822 1,102,297 3,950,741 439,792 7,295,241

HTM financial assets 2,869,598 1,128,660 741,322 2,378,775 5,702,059 67,957 12,915,371

Total 155,772,057 13,219,633 5,016,083 6,485,047 17,807,464 2,039,016 200,339,300

Liability


90,729,160 15,003,244 14,015,935 14,648,702 17,251,437 195,505 151,843,983

Borrowings 14,140,641 1,744,070 475,926 890,510 3,878,257 774,686 21,904,090

Debentures 3,653,381 2,938,866 2,450,880 3,253,328 10,234,597 2,403,574 24,934,626

Total \ 108,523,182 \ 19,686,180 \ 16,942,741 \ 18,792,540 \ 31,364,291 \ 3,373,765 \198,682,699

Repricing date is defined as the date which interest rates of operational funds and procuring funds can be re-adjusted before the expiration date.

Analysis based on interest expirations is used to analyze assets and liabilities that cause interest margins and interest costs. However, loans and

receivable account that are not expected to have interest cash flow due to impairment and other circumstances are excluded from the analysis.

b) Currency risk

Currency risk occurs from the financial instrument denominated in a foreign currency other than the functional currencies. Therefore, no currency risk

arises from non-monetary items or financial instruments denominated in the functional currency.

Financial instruments in foreign currencies exposed to currency risk are as follows (Unit: USD in millions, JPY in millions, CNY in millions, EUR in millions

and Korean Won in millions):

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USD JPY CNY EUR Others Total

Foreign currency

Won equivalent

Foreign currency

Won equivalent

Foreign currency

Won equivalent

Foreign currency

Won equivalent

Won equivalent

Wonequivalent

Asset


19,824 \ 22,863,396 256,803 \ 3,813,929 9,741 \ 1,777,788 816 \ 1,219,539 \ 2,126,750 \ 31,801,402


347 400,498 233 3,467 - - 1 1,375 - 405,340


199 229,969 1,102 16,362 186 33,937 15 22,050 36,247 338,565

HTM financial assets

21 23,867 - - 10 1,812 - - 77,288 102,967

Total 20,391 \ 23,517,730 258,138 \ 3,833,758 9,937 \ 1,813,537 832 \ 1,242,964 \ 2,240,285 \ 32,648,274

Liability

Financial liabilities at FVTPL

424 \ 489,411 1,766 \ 26,226 - \ - 2 \ 2,667 \ - \ 518,304

Deposits 6,090 7,023,436 62,491 928,091 8,788 1,603,813 223 333,608 482,261 10,371,209

Borrowings 7,428 8,567,946 118,747 1,763,584 4 766 851 1,271,226 344,539 11,948,061

Debentures 3,809 4,392,959 50,019 742,856 - - - - 274,503 5,410,318

Other financial liabilities

2,440 2,814,563 22,429 333,100 128 23,428 370 552,203 193,964 3,917,258

Total 20,191 \ 23,288,315 255,452 \ 3,793,857 8,920 \ 1,628,007 1,446 \ 2,159,704 \ 1,295,267 \ 32,165,150

Off-balance sheet items

12,034 \ 13,878,337 31,268 \ 464,379 123 \ 22,451 641 \ 958,219 \ 595,220 \ 15,918,606

December 31, 2010


Foreign currency

Won equivalent

Foreign currency

Won equivalent

Foreign currency

Won equivalent

Foreign currency

Won equivalent

Won equivalent

Won equivalent

Asset


15,402 \ 17,540,903 252,852 \ 3,532,546 9,520 \ 1,642,217 883 \ 1,336,928 \ 1,775,410 \ 25,828,004


378 430,778 403 5,629 - - - 322 - 436,729


209 247,037 2,030 22,456 90 15,551 13 22,059 49,125 356,228


26 29,612 - - - - - - 113,925 143,537

Total 16,015 \ 18,248,330 255,285 \ 3,560,631 9,610 \ 1,657,768 896 \ 1,359,309 \ 1,938,460 \ 26,764,498



WOORI BANK

December 31, 2010


Foreign currency

Won equivalent

Foreign currency

Won equivalent

Foreign currency

Won equivalent

Foreign currency

Won equivalent

Won equivalent

Won equivalent

Liability


1,518 \ 1,726,729 1,732 \ 24,195 - \ - 1 \ 1,024 \ - \ 1,751,948

Deposits 5,158 5,874,575 45,357 633,670 7,200 1,241,963 156 235,560 447,999 8,433,767

Borrowings 5,735 6,530,943 117,647 1,643,623 972 167,680 650 983,349 403,383 9,728,978

Debentures 3,556 4,050,173 10,000 139,708 - - - - 258,545 4,448,426

Other finan-cial liabilities

795 905,742 11,012 153,851 116 20,046 25 37,874 35,495 1,153,008

Total 16,762 \ 19,088,162 185,748 \ 2,595,047 8,288 \ 1,429,689 832 \ 1,257,807 \ 1,145,422 \ 25,516,127


11,537 \ 13,139,121 34,304 \ 479,258 506 \ 87,291 696 \ 1,053,871 \ 563,243 \ 15,322,784

January 1, 2010


Foreign cur-

rencyWon

equivalentForeign

currency

Won equiva-

lentForeign

currency

Won equiva-

lentForeign

currency

Won equiva-

lent

Won equiva-

lentWon

equivalent

Asset


16,170 \ 18,879,625 255,901 \ 3,231,571 66 \ 11,354 857 \ 1,434,938 \ 2,368,389 \ 25,925,877


385 449,407 303 3,820 - - 1 1,810 - 455,037


423 493,750 4,690 59,225 - - 58 97,649 41,620 692,244


66 77,455 - - - - - - 120,223 197,678

Total 17,044 \ 19,900,237 260,894 \ 3,294,616 66 \ 11,354 916 \ 1,534,397 \ 2,530,232 \ 27,270,836

Liability

Financial liabili-ties at FVTPL

1,925 \ 2,247,206 1,249 \ 15,776 - \ - 2 \ 3,869 \ - \ 2,266,851

Deposits 6,215 7,256,063 55,032 694,955 - 8 351 587,278 1,208,371 9,746,675

Borrowings 7,045 8,225,924 57,132 721,476 - - 201 336,939 275,621 9,559,960

Debentures 2,958 3,453,639 10,000 126,282 - - 300 502,284 180,629 4,262,834

Other financial liabilities

700 817,293 3,272 41,322 - - 70 117,854 69,440 1,045,909

Total 18,843 \ 22,000,125 126,685 \ 1,599,811 - \ 8 924 \ 1,548,224 \ 1,734,061 \ 26,882,229


11,590\

13,532,83640,644 \ 513,265 - \ - 819 \ 1,371,953 \ 620,800 \ 16,038,854

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(3) Liquidity risk

Liquidity risk refers to the risk that the Group may encounter difficulties in meeting obligations from its financial liabilities.

1) Liquidity risk management

Liquidity risk management is to prevent potential cash shortage as a result of mismatching the use of funds (assets) and sources of funds (liabilities) or

unexpected cash outflows.

Assets and liabilities are grouped by account under Asset Liability Management (“ALM”) in accordance with the characteristics of the account. The

Group manages liquidity risk by identifying maturity gap and such gap ratio through various cash flows analysis (i.e. based on remaining maturity and

contract period, etc.); while maintaining the gap ratio at or below the target limit.

2) Maturity analysis of non-derivative financial liabilities

a) The Group’s maturity analysis of non-derivative financial liabilities, cash flows of principals and interests, by remaining

contractual maturities are as follows (Unit: Korean Won in millions):

December 31, 2011

Within 3 months

3 to 6 months

6 to 9 months

9 to 12months

1 to 5years

5 years ~ Total


\ 5,835 \ 5,898 \ 5,900 \ 4,330 \ 210,341 \ 191,757 \ 424,061


96,425,171 17,482,780 15,025,139 33,330,322 4,871,864 1,490,642 168,625,918

Borrowings 11,594,987 2,305,798 794,432 2,489,316 2,748,473 678,892 20,611,898

Debentures 3,173,674 1,252,085 1,056,362 2,177,705 12,693,036 1,906,321 22,259,183

Other financial liabilities 10,791,636 23,458 - - - 3,963,631 14,778,725

Total \ 121,991,303 \ 21,070,019 \ 16,881,833 \ 38,001,673 \ 20,523,714 \ 8,231,243 \ 226,699,785

December 31, 2010

Within 3 months

3 to 6 months

6 to 9months

9 to 12 months

1 to 5 years

5 years ~ Total


\ 6,952 \ 38,770 \ 7,745 \ 38,083 \ 499,475 \ 1,375,818 \ 1,966,843


86,725,216 15,543,784 15,828,790 34,299,954 6,096,054 1,585,392 160,079,190

Borrowings 10,302,555 2,863,086 610,201 1,485,583 3,700,201 713,096 19,674,722

Debentures 796,579 1,163,516 1,590,615 2,030,848 15,034,443 6,449,049 27,065,050

Other financial liabilities 4,054,238 14,342 - - 73,371 2,538,276 6,680,227

Total \ 101,885,540 \ 19,623,498 \ 18,037,351 \ 37,854,468 \ 25,403,544 \ 12,661,631 \ 215,466,032



WOORI BANK

January 1, 2010

Within 3 months

3 to 6 months

6 to 9months

9 to 12 months

1 to 5 years

5 years ~ Total


\ 11,123 \ 43,379 \ 82,028 \ 42,644 \ 444,563 \ 1,762,125 \ 2,385,862

Deposits due to custom-ers

78,737,607 12,613,822 14,947,508 39,090,936 6,091,260 1,512,525 152,993,658

Borrowings 12,565,916 2,211,515 877,941 972,475 4,610,501 769,063 22,007,411

Debentures 2,039,926 3,203,710 2,405,116 3,725,855 10,525,756 2,324,423 24,224,786

Other financial liabilities 3,428,188 - 58,880 - - 3,066,059 6,553,127

Total \ 96,782,760 \ 18,072,426 \ 18,371,473 \ 43,831,910 \ 21,672,080 \ 9,434,195 \ 208,164,844

Above maturity analysis includes both principal and interest cash flows by contractual maturities.

b) Cash flows of principals and interests by expected maturities of non-derivative financial liabilities are as follows (Unit: Korean

Won in millions):

December 31, 2011

Within 3 months

3 to 6 months

6 to 9 months

9 to 12 months

1 to 5 years

5 years ~ Total


\ 5,835 \ 5,898 \ 5,900 \ 4,330 \ 210,341 \ 191,757 \ 424,061


108,096,621 22,148,175 15,420,426 17,086,761 4,023,178 1,132,860 167,908,021

Borrowings 11,594,987 2,305,798 794,432 2,489,316 2,748,473 678,892 20,611,898

Debentures 3,173,674 1,252,085 1,056,362 2,177,705 12,693,036 1,906,321 22,259,183

Other financial liabilities 10,791,636 23,458 - - - 3,963,631 14,778,725

Total \ 133,662,753 \ 25,735,414 \ 17,277,120 \ 21,758,112 \ 19,675,028 \ 7,873,461 \ 225,981,888

December 31, 2010

Within 3 months

3 to 6 months

6 to 9 months

9 to 12 months

1 to 5 years

5 years ~ Total


\ 6,952 \ 38,770 \ 7,745 \ 38,083 \ 499,475 \ 1,375,818 \ 1,966,843


106,679,712 20,474,148 13,610,871 13,011,624 4,335,968 1,202,551 159,314,874

Borrowings 10,302,555 2,863,086 610,201 1,485,583 3,700,201 713,096 19,674,722

Debentures 796,579 1,163,516 1,590,615 2,030,848 15,034,443 6,449,049 27,065,050

Other financial liabilities 4,054,238 14,342 - - 73,371 2,538,276 6,680,227

Total\

121,840,036 \ 24,553,862 \ 15,819,432 \ 16,566,138 \ 23,643,458 \ 12,278,790

\ 214,701,716

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January 1, 2010

Within 3 months

3 to 6 months

6 to 9 months

9 to 12 months

1 to 5years

5years ~ Total


\ 11,123 \ 43,379 \ 82,028 \ 42,644 \ 444,563 \ 1,762,125 \ 2,385,862


100,593,806 17,976,464 13,165,844 14,966,754 4,252,223 1,215,905 152,170,996

Borrowings 12,565,916 2,211,515 877,941 972,475 4,610,501 769,063 22,007,411

Debentures 2,039,926 3,203,710 2,405,116 3,725,855 10,525,756 2,324,423 24,224,786

Other financial liabilities 3,428,188 - 58,880 - - 3,066,059 6,553,127

Total\

118,638,959 \ 23,435,068 \ 16,589,809 \ 19,707,728 \ 19,833,043 \ 9,137,575

\ 207,342,182

Above maturity analysis includes both principal and interest cash flows by expected maturities.

c) Maturity analysis of derivative financial liabilities is as follows (Unit: Korean Won in millions):

Within 3 months

3 to 6 months

6 to 9 months

9 to 12 months

1 to 5 years

5 years ~ Total

December 31, 2011 \ 3,185,021 \ (525) \ 6,209 \ (678) \ 16,206 \ - \ 3,206,233

December 31, 2010 3,208,777 (468) 3,854 (802) 23,500 3,411 3,238,272

January 1, 2010 4,056,715 (5,674) 5,803 (2,264) 56,234 13,297 4,124,111

Derivatives held for trading are not managed by contractual maturity as they are held for trading or redemption before maturity. Therefore, they are

included in the ‘within 3 months’. Cash flows of derivatives instrument held for fair value hedging or cash flow hedging are estimated by cash inflows

and outflows.

d) Maturity analysis of off-balance sheet accounts is as follows (Unit: Korean Won in millions):

Guarantees and loan commitments like guarantees for debenture issuance and guarantees for loans which are financial guarantee provided by the

Group has expiration dates. However, in case of request of transaction counterparty, the Group will carry out a payment immediately. Details of off-

balance sheet items are as follows (Unit: Korea Won in millions):


Guarantees \ 22,516,325 \ 23,451,380 \ 24,510,729

Loan commitments 84,708,979 79,895,333 74,519,965

The above amounts are stated at gross of related provisions.

(4) Operational risk

The Group defines operational risk as the risk that could cause a negative effect on capital resulting from inadequate internal process, labor work and

systematic problem or external factors.

1) Operational risk management



WOORI BANK

The Group has been running the operational risk management system under Basel II . The Group developed advanced measurement approached

to quantify required capital for operational risk. This system is used for reinforcement in foreign competitions, reducing the amount of risk capitals,

managing the risk, and precaution for any unexpected occasions. This system has been tested by the independent third party, and this system approved

by the Financial Supervisory.

2) Operational risk measurement

To quantify required capital for operational risk, the Group applies advanced measurement approach using of internal loss data, business environment

and internal control factors and scenario analysis. For the risk management over subsidiaries of the Group, the Group uses the basic indicator approach.

(5) Capital management

The Group follows the capital adequacy standard suggested by the Financial Supervisory. This standard is based on Basel II from 2004, which has been

adopted in Korea since 2008. In accordance with banking regulations, the Group is required to maintain a minimum 8% of capital adequacy ratio with

high capital risk.

According to the Banking supervision by laws enforcement, the entity's capital can be clarified into two kinds.

– Tier 1 capital (Basic capital): Basic capital consists of the capital, capital surplus, retained earnings, the entity's non-controlling interest (hybrid security

included), exchange differences in other accumulated comprehensive incomes.

– Tier 2 capital (Supplement capital): Supplement capital includes revaluation reserves, gains on valuation of available for sale securities, 45% of share

of other comprehensive income on investment in associates, 70% of the existing revaluation gain of fixed assets of the retained earnings, subordinated

term debt more than 5 years, the provision for credit losses under banking supervision regulations.

Risk Weighted Assets is the Group’s assets weighted according to credit risk; errors caused by internal process problems, external occasions and danger

of the change in market. The entity calculates risk weighted assets to obey the banking supervisory's detailed enforcement and BIS percentage to

predict the equity capital by adding the basic and complementary capital total.

The Group makes measures to cope with certain level of loss caused by accumulating the equity capital that is exposed to the risk. The Group is testing

and using not only the BIS percentage, which is the minimum regulation standard, but also it is using internal standards. An evaluation on capital

adequacy is performed to calculate the gap between available capital and economic capital. In addition, analysis on emergent incidents and additional

capital requirements are added and applied. The capital adequacy is evaluated for both supervisory and internal management purpose in accordance

with the comparison of unexpected loss and the available capital. If the test result from internal capital adequacy shows lack of available capital, the

Group is committed to expanding the equity capital and reinforcement of the risk management.

Details of the Group’s capital adequacy ratio as of December 31, 2011 based on K-IFRS are as follows (Unit: Korean Won in millions):

December 31, 2011

Basic capital \ 15,061,543

Supplement capital 4,268,852

19,330,395

Risk weighted assets 140,290,486

Capital adequacy ratio 13.78%

Details of the Group’s capital adequacy ratio as of December 31, 2010 and January 1, 2010 based on K-GAAP are as follows (Unit: Korean Won in

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millions):


Basic capital \ 15,051,571 \ 14,211,015

Supplement capital 4,286,821 5,452,417

19,338,392 19,663,432

Risk weighted assets 131,997,531 136,662,418

Capital adequacy ratio 14.65% 14.39%

5. OPERATING SEGMENTS

The Group’s reporting segment comprises consumer banking, corporate banking, investment banking, capital market, and headquarters and others.

The reportable segments are classified based on the target customer for whom the service is being provided.

The details of operating segment are as follows (Unit: Korean Won in millions):

December 31, 2011

Consumer banking

Corporate banking

Investmentbanking

Capitalmarket

Headquarters and others Sub-total

Inter-segment transaction Total

Assets \ 66,573,578 \ 92,128,495 \ 8,372,199 \ 21,961,041 \ 57,313,632 \ 246,348,945 \ (3,876,783) \ 242,472,162

Liabilities 66,410,452 99,911,272 94,973 13,594,388 45,224,498 225,235,583 (889,561) 224,346,022

December 31, 2010

Consumer banking

Corporate banking

Investmentbanking

Capitalmarket



Assets \ 61,978,537 \ 88,524,168 \ 8,271,104 \ 18,549,009 \ 53,005,239 \ 230,328,057 \ (1,773,194) \ 228,554,863

Liabilities 61,965,242 99,554,678 106,981 10,508,096 39,728,096 211,863,093 (795,161) 211,067,932

January 1, 2010

Consumer banking

Corporate banking

Investmentbanking

Capitalmarket



Assets \ 60,511,217 \ 92,126,807 \ 8,917,312 \ 17,883,261 \ 50,155,752 \ 229,594,349 \ (2,667,008) \ 226,927,341

Liabilities 57,397,078 98,976,060 332,950 11,337,944 44,946,173 212,990,205 (2,983,231) 210,006,974

The components of operating segment are as follows (Unit: Korean Won in millions):


Consumer banking

Corporate banking

Investmentbanking

Capitalmarket

Headquartersand others Sub-total


Net interest income:

Interest income \ 4,049,332 \ 5,203,936 \ 344,881 \ 505,272 \ 1,584,108 \ 11,687,529 \ (28,271) \ 11,659,258



WOORI BANK


Consumer banking

Corporate banking

Investmentbanking

Capitalmarket

Headquartersand others Sub-total


Interest expense (1,810,688) (3,147,929) (11,136) (180,297) (1,413,599) (6,563,649) 629,987 (5,933,662)

Inter-segment 63,958 692,552 (308,245) (316,579) (119,634) 12,052 (12,052) -

2,302,602 2,748,559 25,500 8,396 50,875 5,135,932 589,664 5,725,596

Non-interest income:

Non-interest income 1,669,152 2,945,134 487,772 6,316,802 5,397,679 16,816,539 (205,572) 16,610,967

Non-interest expense (1,420,772) (2,528,459) (480,901) (6,205,221) (4,556,095) (15,191,448) 54,272 (15,137,176)

Inter-segment 12,788 34,909 (33,698) 5,475 (19,186) 288 (288) -

261,168 451,584 (26,827) 117,056 822,398 1,625,379 (151,588) 1,473,791

Other expense:

Administrative expense (1,600,340) (749,681) (20,086) (20,311) (58,904) (2,449,322) (103,471) (2,552,793)

Provisions (146,632) (707,900) (366,505) (6,159) (565,486) (1,792,682) (170,828) (1,963,510)

(1,746,972) (1,457,581) (386,591) (26,470) (624,390) (4,242,004) (274,299) (4,516,303)

Operating income (loss) \ 816,798 \ 1,742,562 \ (387,918) \ 98,982 \ 248,883 \ 2,519,307 \ 163,777 \ 2,683,084


Consumer banking

Corporate banking

Investmentbanking

Capitalmarket



Net interest income:

Interest income \ 3,686,665 \ 5,149,892 \ 361,981 \ 451,296 \ 1,470,473 \ 11,120,307 \ (139,259) \ 10,981,048

Interest expense (1,684,539) (3,070,440) (13,863) (127,161) (1,582,582) (6,478,585) 524,299 (5,954,286)

Inter-segment 131,896 815,534 (308,449) (253,044) (398,747) (12,810) 12,810 -

2,134,022 2,894,986 39,669 71,091 (510,856) 4,628,912 397,850 5,026,762

Non-interest income:

Non-interest income 1,356,549 2,258,624 680,554 6,694,296 4,858,524 15,848,547 399,958 16,248,505

Non-interest expense (1,108,095) (1,905,938) (494,915) (6,573,805) (4,094,469) (14,177,222) (776,925) (14,954,147)

Inter-segment 11,921 31,967 (28,758) 3,309 (18,641) (202) 202 -

260,375 384,653 156,881 123,800 745,414 1,671,123 (376,765) 1,294,358

Other expense:

Administrative expense (1,506,939) (701,187) (16,551) (15,889) (22,125) (2,262,691) (814) (2,263,505)

Provisions (125,212) (1,338,427) (156,361) (90,706) (783,349) (2,494,055) (65,931) (2,559,986)

(1,632,151) (2,039,614) (172,912) (106,595) (805,474) (4,756,746) (66,745) (4,823,491)

Operating income(loss)

\ 762,246 \ 1,240,025 \ 23,638 \ 88,296 \ (570,916) \ 1,543,289 \ (45,660) \ 1,497,629

Information on financial products and services

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The financial products of the Group are classified as interest, non-interest and other goods; however, since this classification has already been reflected

in the component of the operating segments above, revenue from external customers is not separately disclosed.

Information on geographical areas

Details of the geographical revenues from external customers and non-current assets are as follows (Unit: Korean Won in millions);

Revenues from external customers Non-current assets



December 31,2011

December 31,2010

January 1, 2010

Domestic \ 27,435,342 \ 26,058,455 \ 3,188,702 \ 3,016,128 \ 3,038,050

Overseas 834,883 1,171,098 30,441 30,727 29,778

Total \ 28,270,225 \ 27,229,553 \ 3,219,143 \ 3,046,855 \ 3,067,828

Revenues from external customers consist of interest income and non-interest income. Non-current assets consist of investments in associates,

investment properties, premises and equipment, and intangible assets.

6. CASH AND CASH EQUIVALENTS

(1) Details of cash and cash equivalents are as follows (Unit: Korean Won in millions):


Cash and checks \ 2,826,040 \ 2,435,367 \ 3,387,396

Foreign currencies 464,745 387,240 339,089

Demand deposits 1,853,893 874,775 1,178,970

Fixed deposits 244,589 188,302 134,691

Total \ 5,389,267 \ 3,885,684 \ 5,040,146

(2) Material transactions not involving cash inflows and outflows are as follows (Unit: Korean Won in millions):



Changes in other comprehensive income of AFS securities \ (508,346) \ (281,642)

Changes in other comprehensive income of investment in associates (28,651) (28,532)

Changes in other comprehensive income of overseas business translation 15,539 (16,977)

Changes in other comprehensive income of cash flow hedge 8,805 1,500



WOORI BANK

7. FINANCIAL ASSETS AT FVTPL

(1) Details of financial assets at FVTPL are as follows (Unit: Korean Won in millions):


Financial assets held for trading \ 11,317,845 \ 11,104,050 \ 12,242,418

Financial assets designated at FVTPL - - 92,427

Total \ 11,317,845 \ 11,104,050 \ 12,334,845

(2) Details of financial assets held for trading are as follows (Unit: Korean Won in millions):


Securities in local currency:

Korean treasury and government agencies \ 588,452 \ 1,161,195 \ 2,120,628

Financial institutions 2,653,822 1,304,500 684,193

Corporates 3,977 9,515 67,729

Equity securities 282,889 196,567 311,762

Beneficiary certificates - 300 2,036

Other securities 2,140,121 3,067,997 3,624,250

Loaned securities 19,876 409,622 11,261

Sub-total 5,689,137 6,149,696 6,821,859

Derivatives instruments assets:

Interest rate derivatives 1,422,915 1,279,705 1,176,100

Currency derivatives 1,867,416 2,124,661 2,677,650

Equity derivatives 53,706 39,279 47,338

Commodity derivatives 16,346 25,439 40,177

Sub-total 3,360,383 3,469,084 3,941,265

Other financial assets (CMA CP) 2,268,325 1,485,270 1,479,294

Total \ 11,317,845 \ 11,104,050 \ 12,242,418

(3) As of January 1, 2010, the Group designated finance debentures in foreign currency with embedded derivatives, which amounted to \81,218 million, as financial assets at FVTPL. Also, the Group has designated other hybrid financial instruments to eliminate or significantly reduce a measurement or recognition inconsistency that would otherwise arise from recognizing assets and liabilities on a different basis.

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8. AFS FINANCIAL ASSETS

(1) Details of AFS financial assets are as follows (Unit: Korean Won in millions):


AFS financial assets in local currency:

Debt securities:

Korean treasury and government agencies \ 2,478,265 \ 2,262,008 \ 2,353,635

Financial institutions 3,994,503 4,939,624 2,558,248

Corporates 2,390,187 1,314,616 1,192,905

Others 369 27,927 357,757

Sub-total 8,863,324 8,544,175 6,462,545

Equity securities:

Listed stock 877,036 1,546,560 1,560,608

Unlisted stock 747,675 640,966 721,282

Capital contributions 252,002 209,976 224,154

Beneficiary certificates 3,511,812 4,463,691 7,041,622

Sub-total 5,388,525 6,861,193 9,547,666

Sub-total 14,251,849 15,405,368 16,010,211

AFS financial assets in foreign currencies:

Debt securities 199,049 207,041 475,854


Sub-total 338,565 356,228 692,243

Loaned securities 80,193 848,494 -

Total \ 14,670,607 \ 16,610,090 \ 16,702,454

(2) Details of unrealized gains or losses on AFS financial assets are as follows (Unit: Korean Won in millions):

December 31, 2011

Amortizedcost (or cost)

Gross unrealized gains

Gross unrealized losses

Fair value


Debt securities:

Korean treasury and government agencies \ 2,447,068 \ 31,632 \ (435) \ 2,478,265

Financial institutions 3,983,885 11,145 (527) 3,994,503

Corporates 2,384,008 17,271 (11,092) 2,390,187

Others 369 - - 369

Sub-total 8,815,330 60,048 (12,054) 8,863,324

Equity securities:

Listed stock 453,618 424,510 (1,092) 877,036



WOORI BANK

December 31, 2011




Fair value

Unlisted stock 597,077 154,592 (3,994) 747,675

Capital contributions 252,675 6,219 (6,892) 252,002

Beneficiary certificates 3,443,689 70,705 (2,582) 3,511,812

Sub-total 4,747,059 656,026 (14,560) 5,388,525

Sub-total 13,562,389 716,074 (26,614) 14,251,849


Debt securities 199,079 117 (147) 199,049

Equity securities 111,639 32,498 (4,621) 139,516

Sub-total 310,718 32,615 (4,768) 338,565

Loaned securities 79,990 203 - 80,193

Total \ 13,953,097 \ 748,892 \ (31,382) \ 14,670,607

December 31, 2010




Fair value


Debt securities:

Korean treasury and government agencies \ 2,228,919 \ 33,325 \ (236) \ 2,262,008


Corporates 1,297,009 17,885 (278) 1,314,616

Others 27,927 - - 27,927

Sub-total 8,478,668 66,942 (1,435) 8,544,175

Equity securities:

Listed stock 675,838 880,747 (10,025) 1,546,560

Unlisted stock 510,242 134,693 (3,969) 640,966



Sub-total 5,748,867 1,148,850 (36,524) 6,861,193

Sub-total 14,227,535 1,215,792 (37,959) 15,405,368


Debt securities 199,386 8,481 (826) 207,041


Sub-total 337,091 29,501 (10,364) 356,228

Loaned securities 845,230 4,992 (1,728) 848,494

Total \ 15,409,856 \ 1,250,285 \ (50,051) \ 16,610,090

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January 1, 2010




Fair value


Debt securities:

Korean treasury and government agencies \ 2,363,561 \ 4,083 \ (14,009) \ 2,353,635

Financial institutions 2,550,631 11,263 (3,646) 2,558,248

Corporates 1,191,870 1,814 (779) 1,192,905

Others 356,128 2,492 (863) 357,757

Sub-total 6,462,190 19,652 (19,297) 6,462,545

Equity securities:

Listed stock 274,902 1,288,181 (2,475) 1,560,608

Unlisted stock 604,622 119,354 (2,694) 721,282



Sub-total 8,084,705 1,496,368 (33,407) 9,547,666

Sub-total 14,546,895 1,516,020 (52,704) 16,010,211


Debt securities 480,385 2,802 (7,333) 475,854


Sub-total 669,134 58,198 (35,089) 692,243

Total \ 15,216,029 \ 1,574,218 \ (87,793) \ 16,702,454

(3) Structured notes of AFS financial assets are as follows (Unit: Korean Won in millions):

December 31, 2011

Face value Carrying value Potential Risk

Structured notes relating to stock:

Convertible bonds \ 11,094 \ - Decrease in related stock price

Structured notes relating to credit risk:

Synthetic CDO (*1) 57,665 - Credit risk of underlying assets

Cash CDO 150,865 - Credit risk of underlying assets

Total \ 219,624 \ -

December 31, 2010






WOORI BANK

December 31, 2010


Structured notes relating tocredit risk:

Synthetic CDO (*1) 56,945 - Credit risk of underlying assets

Cash CDO 186,109 13,180 Credit risk of underlying assets

Total \ 254,077 \ 13,180

January 1, 2010




Structured notes relating tocredit risk:

Synthetic CDO (*1) 249,306 81,218 Credit risk of underlying assets

Cash CDO 255,017 22,474 Credit risk of underlying assets

Total \ 514,517 \ 103,692

(*1) Synthetic CDO is designated as financial asset at FVTPL.

9. HTM FINANCIAL ASSETS

(1) Details of HTM financial assets are as follows (Unit: Korean Won in millions):


In local currency:

Korean treasury and government agencies \ 5,131,953 \ 4,878,080 \ 1,705,947

Financial institutions 5,193,115 6,955,940 9,996,894

Corporates 4,972,391 3,942,760 614,012

Sub-total 15,297,459 15,776,780 12,316,853

In foreign currencies:

Debt securities 102,966 143,537 197,678

Loaned securities - - 12,498

Total \ 15,400,425 \ 15,920,317 \ 12,527,029

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(2) Details of unrealized gains or losses on HTM financial assets are as follows (Unit: Korean Won in millions):

December 31, 2011




Fair value

In local currency:



Corporates 4,972,391 38,215 (4,256) 5,006,350

Sub-total 15,297,459 110,543 (6,052) 15,401,950


Debt securities 102,966 - - 102,966

Total \ 15,400,425 \ 110,543 \ (6,052) \ 15,504,916

December 31, 2010




Fair value

In local currency:



Corporates 3,942,760 36,827 (2,729) 3,976,858

Sub-total 15,776,780 126,504 (8,985) 15,894,299



Total \ 15,920,317 \ 126,504 \ (8,985) \ 16,037,836

January 1, 2010



Grossunrealized losses

Fair value

In local currency:


Financial institutions 9,996,894 41,410 (18,964) 10,019,340

Corporates 614,012 4,792 (1,054) 617,750

Sub-total 12,316,853 50,802 (33,440) 12,334,215



Loaned securities 12,498 - - 12,498

Total \ 12,527,029 \ 50,802 \ (33,440) \ 12,544,391



WOORI BANK

10. LOANS AND RECEIVABLES

(1) Details of loans and receivables are as follows (Unit: Korean Won in millions):


Due from banks \ 11,864,976 \ 8,854,017 \ 5,355,650

Provisions for credit losses (4,431) (8,547) (14,998)

Sub-total 11,860,545 8,845,470 5,340,652

Loans and other receivables 183,395,456 172,948,128 174,679,512

Provisions for credit losses (3,346,969) (4,162,723) (3,170,830)

Sub-total 180,048,487 168,785,405 171,508,682

Total \ 191,909,032 \ 177,630,875 \ 176,849,334

(2) Details of due from banks are as follows (Unit: Korean Won in millions):


Due from banks in local currency:

Due from the BOK \ 10,166,149 \ 7,442,596 \ 3,833,828

Due from depository institutions 14,972 156,964 546,156

Due from non-depository financial institutions 7,975 29,429 20,760

Due from the Korea Exchange 5,659 2,450 1,817

Others 12,838 87,834 125,838


Sub-total 10,205,230 7,717,747 4,522,787

Due from banks in foreign currencies:

Due from banks in other bank 618,766 696,553 395,708

Due from banks on time 439,266 152,361 67,020

Others 599,351 285,830 364,523


Sub-total 1,655,315 1,127,723 817,865

Total \ 11,860,545 \ 8,845,470 \ 5,340,652

(3) Details of restricted due from banks are as follows (Unit: Korean Won in millions):

Financial institution December 31, 2011 December 31, 2010 January 1, 2010 Reasons

In local currency:

BOK \ 10,166,148 \ 7,442,596 \ 3,833,828 BOK Act

Korea Exchange 250 125 125Deposits for required settlement charges

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Samsung Securities and others 7,617 77,386 103,429Deposits for futures margin and others

Others 12 12 12 Pledged commission income

Sub-total 10,174,027 7,520,119 3,937,394


In local currency:

BOK \ 321,959 \ 275,545 \ 255,942 BOK Act

Bank of Japan and others 68,359 134,113 186,151Reserve deposits in foreign branches and others

Central bank of Indonesia and other

499,347 430,717 159,030 Reserve deposits and others

Central bank of Bangladesh and others

66,771 38,616 37,720Installation deposits of financial institution and others

Macquarie bank and others 513 41,487 228,118Collateral for derivatives transaction and others

Sub-total 956,949 920,478 866,961

Total \ 11,130,976 \ 8,440,597 \ 4,804,355

(4) Details of loans and other receivables are as follows (Unit: Korean Won in millions):


Loans:

Loans in local currency:

Loans to enterprises:

Working capital \ 54,609,789 \ 55,769,282 \ 59,240,337

Facilities and equipment 20,286,327 17,709,083 15,774,843

Sub-total 74,896,116 73,478,365 75,015,180

Loans to households:

General purpose 53,010,634 52,718,344 53,604,142

Housing 8,561,428 4,397,441 2,227,410

Other 259,198 172,322 559,086

Sub-total 61,831,260 57,288,107 56,390,638

Loans to public sector and other:

Working capital 2,721,453 2,137,823 2,134,099

Facilities and equipment 1,411,145 1,138,996 984,610

Other 40,032 22,907 41,797

Sub-total 4,172,630 3,299,726 3,160,506

Inter-bank loans 833,057 906,456 1,387,563



WOORI BANK


Provisions for credit losses (2,478,721) (3,191,583) (2,052,675)

Sub-total 139,254,342 131,781,071 133,901,212

Loans in foreign currencies:

Loans in foreign currencies 12,024,482 12,268,802 12,449,807


Sub-total 11,735,683 11,945,519 12,103,717

Domestic banker’s usance 5,086,592 4,033,849 3,735,013

Credit card accounts:

Credit card accounts 4,194,926 3,945,353 3,689,923


Sub-total 4,075,446 3,832,181 3,554,786

Bills bought in foreign currencies:

Bills bought in foreign currencies 5,161,871 4,568,485 4,387,997


Sub-total 5,102,729 4,512,526 4,307,758

Bills bought in local currency:

Bills bought in local currency 481,071 176,613 454,218

Present value discount (1,469) - -

Provision for bills bought in local currency (43) - (55)

Sub-total 479,559 176,613 454,163

Factoring receivables 206,684 58,235 46,571

Advances for customers:

Advances for customers 33,809 296,994 52,995


Sub-total 9,935 179,690 10,106

Privately placed bonds:

Privately placed bonds 1,332,594 2,076,686 2,940,569

Present value discount (20,828) (2,342) (4,068)


Sub-total 1,295,230 2,000,701 2,877,673

Loans for debt-equity swap \ 498 \ 498 \ 578

Backed loans:

Backed loans 607,598 531,444 432,626


Sub-total 487,187 406,862 271,346

Other loans:

Other loans 48,786 148,258 175,157

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Sub-total 43,057 125,904 136,998

Others:

Fair value hedging adjustment 404 571 754

Deferred loan origination fees and costs 154,131 70,366 21,644

Sub-total 154,535 70,937 22,398

Call loans 3,099,061 3,319,571 4,508,782

Bonds purchased under resale agreements 592,000 508,397 1,507,023

Loans-total 171,622,538 162,952,554 167,438,124

Other receivables:

Cash Management Account (“CMA”) 20,000 901,612 181,000

Accounts receivables 6,149,759 2,411,417 2,113,539

Accrued income 973,880 771,901 677,278

Guarantee deposits 965,033 950,887 970,896

Other assets 608,873 998,978 456,038



Other receivable-total 8,425,949 5,832,851 4,070,558

Total \ 180,048,487 \ 168,785,405 \ 171,508,682

(5) Changes in the provisions for credit losses on loans and receivables are as follows (Unit: Korean Won in millions):



Beginning balance \ (4,171,270) \ (3,185,828)

Provisions for credit losses (1,710,653) (2,412,261)

Increase on repurchase of non-performing loans (1,835) -

Recoveries of written-off loans (59,620) (134,087)

Charge-off 2,094,854 1,250,991

Foreign exchange translation adjustment (7,215) (507)

Sales of loans and receivables 484,076 234,646

Other sales 20,263 153,158

Ending balance \ (3,351,400) \ (4,171,270)



WOORI BANK

(6) Changes in deferred loan origination fees and costs are as follows (Unit: Korean Won in millions):

December 31, 2011

Balance atJanuary 1, 2011 Increase Decrease

Balance atDecember 31, 2011

Deferred loan origination fees \ (62,619) \ (38,856) \ 52,912 \ (48,563)

Deferred loan origination costs 132,985 144,640 (74,931) 202,694

\ 70,366 \ 154,131

December 31, 2010

Balance atJanuary 1, 2010 Increase Decrease

Balance atDecember 31, 2010

Deferred loan origination fees \ (88,905) \ (53,152) \ 79,438 \ (62,619)

Deferred loan origination costs 110,549 67,313 (44,877) 132,985

\ 21,644 \ 70,366

11. THE FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES

The Group classified and discloses fair value of the financial instruments into the following three-level hierarchy:

· Level 1: fair value measurements are those derived from quoted prices (unadjusted) in active markets for identical assets or liabilities.

· Level 2: fair value measurements are those derived from inputs other than quoted prices included within Level 1 that are observable for the asset or

liability, either directly (i.e. prices) or indirectly (i.e. derived from prices).

· Level 3: fair value measurements are those derived from valuation technique that include inputs for the asset or liability that are not based on

observable market data (unobservable inputs).

(1) Fair value hierarchy of financial assets and liabilities measured at fair value is as follows (Korean Won in millions):

December 31, 2011

Level 1 Level 2 Level 3 Total

Financial assets:

Financial assets held for trading:



\ 588,094 \ 358 \ - \ 588,452

Financial institutions - 2,653,822 - 2,653,822

Corporates - 3,977 - 3,977

Equity securities 282,889 - - 282,889

Other securities - 2,140,121 - 2,140,121


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Sub-total 890,859 4,798,278 - 5,689,137

Derivatives instruments assets (*1):

Interest rate derivatives - 1,749,328 - 1,749,328

Currency derivatives - 1,867,416 - 1,867,416

Equity derivatives 644 21,871 31,191 53,706

Commodity derivatives - 16,346 - 16,346

Sub-total 644 3,654,961 31,191 3,686,796

Other financial assets (CMA CP) - 2,268,325 - 2,268,325

Total \ 891,503 \ 10,721,564 \ 31,191 \ 11,644,258

AFS financial assets:


Debt securities:


\ 2,468,525 \ 9,740 \ - \ 2,478,265


Corporates - 2,390,187 - 2,390,187

Others - 369 - 369

Sub-total 2,468,525 6,394,799 - 8,863,324

Equity securities:

Listed stock 400,205 - 476,831 877,036

Unlisted stock - - 747,675 747,675

Capital contributions - - 252,002 252,002

Beneficiary certificates - 3,511,812 - 3,511,812

Sub-total 400,205 3,511,812 1,476,508 5,388,525

Sub-total 2,868,730 9,906,611 1,476,508 14,251,849

Securities in foreign currencies:

Debt securities 9,116 189,933 - 199,049

Equity securities 3,449 - 136,067 139,516

Sub-total 12,565 189,933 136,067 338,565


Total \ 2,961,488 \ 10,096,544 \ 1,612,575 \ 14,670,607

December 31, 2011


Financial liabilities:

Financial liabilities at trading:

Borrowings(Securities in short position) \ 8,105 \ - \ - \ 8,105



WOORI BANK

December 31, 2011


Derivatives instruments liabilities(*1):

Interest rate derivatives - 1,523,437 43 1,523,480




Sub-total 80 2,921,105 283,650 3,204,835

Sub-total 8,185 2,921,105 283,650 3,212,940

Financial liability designated at FVTPL:

Debentures in local currency - 226,433 - 226,433

Debentures in foreign currencies - 95,775 - 95,775

Sub-total - 322,208 - 322,208

Total \ 8,185 \ 3,243,313 \ 283,650 \ 3,535,148

December 31, 2010


Financial assets:



Korean treasury and government agencies \ 1,159,917 \ 1,278 \ - \ 1,161,195


Corporates - 9,515 - 9,515


Beneficiary certificate - 300 - 300



Sub-total 1,766,106 4,383,590 - 6,149,696

Derivatives instruments assets (*1)





Sub-total 29 3,597,501 4,778 3,602,308


Total \ 1,766,135 \ 9,466,361 \ 4,778 \ 11,237,274

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Debt securities:



Corporates - 1,314,616 - 1,314,616

Others - 27,927 - 27,927

Sub-total 2,208,867 6,335,308 - 8,544,175

Equity securities:

Listed stock 471,602 - 1,074,958 1,546,560

Unlisted stock - - 640,966 640,966



Sub-total 471,602 4,463,691 1,925,900 6,861,193

Sub-total 2,680,469 10,798,999 1,925,900 15,405,368


Debt securities 9,926 197,115 - 207,041


Sub-total 20,485 197,115 138,628 356,228

Loaned securities 758,475 90,019 - 848,494

Total \ 3,459,429 \ 11,086,133 \ 2,064,528 \ 16,610,090



Borrowings (Securities in short position) \ 18,901 \ - \ - \ 18,901

Derivatives instruments liabilities (*1):



Equity derivatives 2,829 43,399 311,631 357,859

Credit derivatives - - 1,600 1,600


Sub-total 2,829 2,919,752 313,231 3,235,812

Sub-total 21,730 2,919,752 313,231 3,254,713

Financial liability designated at FVTPL:


Debentures in foreign currencies - 1,270,544 - 1,270,544

Sub-total - 1,509,280 - 1,509,280

Total \ 21,730 \ 4,429,032 \ 313,231 \ 4,763,993



WOORI BANK

January 1, 2010


Financial assets:




Financial institutions - 684,193 - 684,193

Corporates - 67,729 - 67,729


Beneficiary certificates - 2,036 - 2,036



Sub-total 2,442,375 4,379,484 - 6,821,859

Derivatives instruments assets (*1):



Equity derivatives - 45,000 2,338 47,338


Sub-total - 4,046,435 2,338 4,048,773


Total 2,442,375 9,905,213 2,338 12,349,926

Financial asset designated at FVTPL

Financial institution bonds in foreign currencies

- 11,209 81,218 92,427

Total \ 2,442,375 \ 9,916,422 \ 83,556 \ 12,442,353



Debt securities:

Korean treasury and government agencies \ 2,353,498 \ 137 \ - \ 2,353,635


Corporates - 1,192,905 - 1,192,905

Others - 357,757 - 357,757

Sub-total 2,353,498 4,109,047 - 6,462,545

Equity securities:

Listed stock 190,088 - 1,370,520 1,560,608

Unlisted stock - - 721,282 721,282



Sub-total 190,088 7,041,622 2,315,956 9,547,666

Sub-total 2,543,586 11,150,669 2,315,956 16,010,211

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Debt securities - 475,854 - 475,854


Sub-total 17,243 475,854 199,146 692,243

Total \ 2,560,829 \ 11,626,523 \ 2,515,102 \ 16,702,454

January 1, 2010




Borrowings (Securities in short position) \ 58,487 \ - \ - \ 58,487

Derivatives instruments liabilities (*1):



Equity derivatives 2,730 140,409 312,834 455,973

Credit derivatives - - 203,317 203,317


Sub-total 2,730 3,567,733 516,151 4,086,614

Sub-total 61,217 3,567,733 516,151 4,145,101

Financial liability designated at FVTPL


Debentures in foreign currencies - 1,412,703 - 1,412,703

Sub-total - 1,684,041 - 1,684,041

Total \ 61,217 \ 5,251,774 \ 516,151 \ 5,829,142

(*1) Derivatives classified FVTPL are included in derivative assets and liabilities.

Financial assets and liabilities at FVTPL, AFS financial assets, held-for-trading financial assets and liabilities and derivative assets and liabilities are

recognized at fair value. Fair value is the amount for which an asset could be exchanged, or a liability settled, between knowledgeable, willing parties

in an arm’s length transaction.

Financial instruments are measured at fair value using a quoted market price in active markets. If there is no active market for a financial instrument,

the Group establishes the fair value using valuation techniques. Fair value measurement methods for each type of financial instruments are as follows:

Fair value measurement technique

Financial assets and liabilities at FVTPLFinancial assets and liabilities at FVTPL are measured at fair value using a price quoted by a third party, such as a pricing service or broker, or using valuation techniques.

Held-for-trading financial assets and liabilities and AFS financial assets

Held-for-trading financial assets and liabilities and AFS financial assets are measured at fair value using a quoted market price in an active market. If a quoted market price is not available, they are measured by using a price quoted by a third party, such as a pricing service or broker, or using valuation techniques.



WOORI BANK

Derivative assets and liabilities Derivatives are measured at fair value using a quoted market price in an active market. If a quoted market price is not available, they are measured at fair value using valuation techniques.

Loans and receivables Loans and receivables are measured by discounting expected future cash flows at a market interest rate of other loans with similar condition.

HTM financial assets HTM financial assets are measured by using a price quoted by a third party, such as a pricing service or broker.

Deposits due to customers and bor-rowings

Deposits due to customers and borrowings are measured at fair value using discounting expected future cash flows at the interest rate of bond issued by the Group. However, if the carrying value is not signifi-cantly different from the fair value, it assumes that the carrying value is equal to the fair value.

Debentures The fair value of issued bond shall be measured at the present value of cash flows using the swap interest rates. For some financial instruments, the fair value estimated by specialists, the third party, can be used.

(2) Changes in financial assets and liabilities classified into Level 3 are as follows (Unit: Korean Won in millions):

Transfer into/out of level 3 for the year ended December 31, 2011

January 1, 2011

Profit or loss

Other comprehensive

incomePurchase/issuance Settlement

December 31, 2011

Financial assets:


Financial assets held for trading

Equity derivatives \ 4,778 \ 6,869 \ - \ 22,915 \ (3,371) \ 31,191


Listed stock in local currency 1,074,958 (43,735) (27,387) 5,043 (532,048) 476,831

Unlisted stock in local currency 640,966 (891) 32,571 132,919 (57,890) 747,675

Capital contributions in local currency

209,976 (9,361) 13,322 83,536 (45,471) 252,002

Equity securities in foreign currencies

138,628 (10,696) 15,498 7,088 (14,451) 136,067

Sub-total 2,064,528 (64,683) 34,004 228,586 (649,860) 1,612,575



Derivative liabilities

Interest rate derivatives - 43 - - - 43

Equity derivatives 311,631 (39,525) - 188,666 (177,165) 283,607

Credit derivatives 1,600 - - - (1,600) -

Sub-total \ 313,231 \ (39,482) \ - \ 188,666 \ (178,765) \ 283,650

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Transfer into/out of level 3 for the year ended December 31, 2010

January 1, 2010

Profit or loss

Othercomprehensive income

Purchase/issuance Settlement

December 31, 2010

Financial assets:

Financial assets at FVTPL:

Financial assets held for trading

Equity derivatives \ 2,338 \ 586 \ - \ 1,854 \ - \ 4,778

Financial asset designated at FVTPL 81,218 - - - (81,218) -

Sub-total 83,556 586 - 1,854 (81,218) 4,778


Listed stock in local currency 1,370,520 (33,191) 38,274 112,824 (413,469) 1,074,958

Unlisted stock in local currency 721,282 (427) 17,251 182,569 (279,709) 640,966

Capital contributions in local currency

224,154 (3,720) (3,902) 23,558 (30,114) 209,976

Equity securities in foreign currencies

199,146 (31,601) 6,447 17,602 (52,966) 138,628

Sub-total 2,515,102 (68,939) 58,070 336,553 (776,258) 2,064,528



Derivative liabilities

Equity derivatives 312,834 35,416 - 188,927 (225,546) 311,631

Credit derivatives 203,317 (3,598) - - (198,119) 1,600

Sub-total \ 516,151 \ 31,818 \ - \ 188,927 \ (423,665) \ 313,231

All recognized gains and losses recognized in profit or loss for the period are related to the holding assets of current and previous period-end. Gain

and loss on the fair value of derivatives and AFS financial assets are included in gain and loss on financial assets at FVTPL and AFS financial assets,

respectively.

(3) Fair value and carrying amount of financial assets and liabilities that are recorded at amortized cost are as follows (Unit: Korean Won in millions):

December 31, 2011

Fair value Carrying amount

Financial assets:

HTM financial assets \ 15,504,916 \ 15,400,425

Loans and receivables 193,429,738 191,909,032


Deposits due to customers 164,044,745 164,092,476

Borrowings 19,109,619 19,174,642

Debentures 20,094,790 19,811,813



WOORI BANK

December 31, 2011


Other financial liabilities 16,347,046 16,346,969

Financial guarantee liabilities 186,638 186,638

December 31, 2010


Financial assets:





Borrowings 18,895,571 18,982,971

Debentures 20,507,210 20,192,427



January 1, 2010


Financial assets:





Borrowings 20,889,127 20,752,335

Debentures 23,736,888 23,476,103



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12. INVESTMENTS IN ASSOCIATES

(1) Investments in associates accounted for using the equity method are as follows (Unit: Korean Won in millions):

December 31, 2011

Investee Location CapitalMainbusiness

Number ofshares

owned

Percentageof owner-

ship (%)


Kumho Tires Co., Ltd. (*1) Korea \ 531,800 Manufacturing 22,514,800 21.2December 31

Woori Blackstone Korea Opportunity Private Equity Fund 1

U.S.A 351,500 Securities investment 75,400 21.4December 31

Woori Service Networks Co., Ltd. (*2) Korea 500 Freight & staffing 4,704 4.9December 31

Woori Private Equity Fund Korea 223,000 Securities investment 64,508 28.9December 31

Korea Credit Bureau Co., Ltd. (*2) Korea 10,000 Credit information 144,000 7.2December 31

Korea Finance Security Co., Ltd. (*2) Korea 6,000 Security service 183,870 15.3December 31

United PF 1st Corporate Financial Stability (*2)

Korea 800,000 Securities investment 148,000 18.5December 31

LIG E&C Co., Ltd. Korea 16,300 Construction 755,946 23.2 -

Hyunjin Co., Ltd. Korea 38,400 Construction 1,667,600 21.7 -


Investee

Number ofshares

owned

Percentageof owner-

ship (%)

Financial state-mentsas of

Number ofshares

owned

Percentageof owner-

ship (%)

Financial state-mentsas of

Kumho Tires Co., Ltd. (*1) 22,514,800 24.2 December 31 - - -

BC Card Co., Ltd. 1,216,800 27.7 December 31 1,216,800 27.7 December 31


1,300 21.4 December 31 - - -

Woori Service Networks Co., Ltd. (*2) 4,704 4.9 December 31 4,704 4.9 December 31

Woori Private Equity Fund 66,996 28.9 December 31 71,124 29.0 December 31

Korea Credit Bureau Co., Ltd. (*2) 144,000 7.2 December 31 144,000 7.2 December 31

Korea Finance Security Co., Ltd. (*2) 183,870 15.3 December 31 183,870 15.3 December 31

Woori SME 1st ABS Co., Ltd. (*3) - - - 82,960 5.0 December 31

(*1) Besides Kumho Tire Co., Ltd., there are no other investments in associates for which there are published price quotations. The market price per share as of December 31, 2011 and 2010 for Kumho Tire Co., Ltd. is \ 10,400 and \ 13,850, respectively.

(*2) The Group has the significant influence over electing the executive who have the power to participate in the financial and operating policy decisions of Korea Credit Bureau Co.,

Ltd. and United PF 1st Corporate Financial Stability. And the majority of the important transactions of Korea Finance Security and Woori Service Networks Co., Ltd. are mainly arranged with the Group.

(*3) The Group has the significant influence over electing the executive who have the power to participate in the financial and operating policy decisions.



WOORI BANK

(2) Excluded entity from associates, although it’s percentage of ownership is higher than 20% as of December 31, 2011, is as follows:

Associate Number of shares owned Percentage of ownership

Vogo 2-2 Special Purpose Entity (*1) 24,067,739,877 34.6 %

(*1) The entity is excluded from the associates because substantially the Group has no significant influence over the investee company although it’s percentage of ownership on common share is higher than 20%.

(3) Changes in carrying value of investments in associates accounted for using the equity method are as follows (Unit: Korean Won in millions):


Investee

Acquisi-tioncost

January 1, 2011

Gain (loss) on

valuationAcquisi-

tion

Disposi-tion

and otherDivi-

dends CapitalOther

changes

Decem-ber 31,

2011

Kumho Tires Co., Inc. \ 113,204 \ 113,204 \ (12,952) \ - \ - \ - \ (3,560) \ 14,665 \ 111,357

BC Card Co., Ltd. 10,876 136,270 - - (80,625) - (24,788) (30,857) -


75,400 24 2,704 74,100 - - - - 76,828

Woori Service Networks Co., Ltd.

24 104 6 - - (12) - - 98

Woori Private Equity Fund 64,508 50,637 (15,315) - (2,487) - (360) - 32,475

Korea Credit Bureau Co., Ltd.

3,600 2,554 458 - - - - - 3,012

Korea Finance Security Co., Ltd.

758 3,436 87 - - (55) - - 3,468

United PF 1st Corporate Financial Stability

148,000 - 1,099 148,000 - - - - 149,099

Total \ 416,370 \ 306,229 \ (23,913) \ 222,100 \ (83,112) \ (67) \ (28,708) \ (16,192) \ 376,337


InvesteeAcquisition

costJanuary 1,

2010

Gain (loss) on

valuation AcquisitionDispositionand other

Divi-dends Capital

Other changes

Decem-ber 31,

2010

Kumho Tire Co., Inc. \ 113,204 \ - \ - \ 113,204 \ - \ - \ - \ - \ 113,204

BC Card Co., Ltd. 10,876 182,965 43,509 - - (62,769) (27,435) - 1,769)36,270

Woori Blackstone Korea Opportunity Private Equity Fund

1,300 - (1,276) 1,300 - - - 24


24 108 (2) - - - - - 104

Woori Private Equity Fund 66,996 59,801 (3,499) 977 (5,105) (434) (1,103) - 50,637


3,600 2,215 339 - - - - - 2,554

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758 3,337 154 - - (55) - - 3,436

Woori SME 1st ABS Co., Ltd.

415 406 (1) - (405) - 6 (6) -

Total \ 197,173 \ 248,832 \ 39,224 \ 115,481 \ (5,510) \ (63,260) \ (28,532) \ (6) \ 306,229

The Group holds 755,946 shares (holding rate: 23.2%) of LIG E&C Co., Ltd., and 1,667,600 shares (holding rate: 21.7%) of Hyunjin Co., Ltd. besides

investments in associated above due to the conversion of investment on written-off loans for the year ended December 31, 2011and there are no

carrying values of the investments as of the conversion date and December 31, 2011, respectively.

(4) Financial information of investments in associates accounted for using the equity method is as follows (Unit: Korean Won in millions):

December 31, 2011

Investee Assets Liabilities Operating revenueNet income

(Net loss)

Kumho Tire Co., Inc. \ 4,634,196 \ 4,112,068 \ 3,946,765 \ (39,354)


358,946 750 17,971 12,608

Woori Service Networks Co., Ltd. 3,541 1,552 11,492 697

Woori Private Equity Fund 1,540,494 1,394,267 376,243 (52,881)

Korea Credit Bureau Co., Ltd. 51,484 9,650 41,409 6,380

Korea Finance Security Co., Ltd. 24,446 1,812 42,790 1,069

United PF 1st Corporate Financial Stability 836,104 30,162 48,117 5,942

December 31, 2010

Investee Assets Liabilities Operating revenueNet income

(Net loss)

Kumho Tire Co., Inc. \ 2,516,861 \ 2,016,356 \ 2,701,990 \ 8,901

BC Card Co., Ltd. 1,913,096 1,380,225 3,125,476 29,899


1,679 1,567 61 (5,949)

Woori Service Networks Co., Ltd. 3,067 977 11,007 883

Woori Private Equity Fund 2,071,949 1,819,739 250,989 (12,255)

Korea Credit Bureau Co., Ltd. 44,983 9,507 33,055 4,428

Korea Finance Security Co., Ltd. 24,493 2,068 41,283 1,847

Woori SME 1st ABS Co., Ltd. 8,116 18 - (12)

4



WOORI BANK

13. INVESTMENT PROPERTIES

(1) Investment properties are as follows (Unit: Korean Won in millions):


Acquisition cost \ 357,263 \ 371,231 \ 392,905

Accumulated depreciation (7,804) (4,357) (942)

Net carrying value \ 349,459 \ 366,874 \ 391,963

(2) Changes in investment properties are as follows (Unit: Korean Won in millions):



Beginning balance \ 366,874 \ 391,963

Disposition (11,780) -

Depreciation (3,433) (3,439)

Impairment loss (2,212) (3,911)

Transfer to properties for business use - (17,524)

Foreign currencies translation adjustment 11 (25)

Others (1) (190)

Ending balance \ 349,459 \ 366,874

(3) Fair value of investment properties as of December 31, 2011 are as follows (Unit: Korean Won in millions):

ClassificationThe latestrevaluation date Land Building Total

Woori Finance Sangam Center and other December 31, 2009 \ 252,090 \ 139,873 \ 391,963

The fair value of investment properties is determined by the assessment performed by Korea Appraisal Board, the independent appraiser who has

proper qualification and experience. In addition, the above appraised value includes the amount of portion used for business by the Group.

(4) For the years ended December 31, 2011 and 2010, the revenue occurred from investment properties is \ 16,553 million and \ 13,652 million, respectively.

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14. PREMISES AND EQUIPMENT

(1) Details of premises and equipment are as follows (Unit: Korean Won in millions):

December 31, 2011

Land BuildingProperties for business use

Structures in leased office

Constructionin progress Total

Acquisition cost \ 1,519,991 \ 736,786 \ 362,705 \ 287,242 \ 2,832 \ 2,909,556

Accumulated depreciation

- (44,527) (275,295) (243,774) - (563,596)

Net carrying value \ 1,519,991 \ 692,259 \ 87,410 \ 43,468 \ 2,832 \ 2,345,960

December 31, 2010




Acquisition cost \ 1,520,737 \ 713,642 \ 349,406 \ 267,924 \ 1,451 \ 2,853,160


- (22,828) (269,496) (226,450) - (518,774)

Net carrying value \ 1,520,737 \ 690,814 \ 79,910 \ 41,474 \ 1,451 \ 2,334,386

January 1, 2010




Acquisition cost \ 1,510,713 \ 699,250 \ 351,859 \ 252,764 \ - \ 2,814,586


- (2,793) (250,266) (202,637) - (455,696)

Net carrying value \ 1,510,713 \ 696,457 \ 101,593 \ 50,127 \ - \ 2,358,890

(2) Details of changes in premises and equipment are as follows (Unit: Korean Won in millions):


Land BuildingProperties for

business useStructures in leased office

Construction in progress Total

Beginning balance \ 1,520,737 \ 690,814 \ 79,910 \ 41,474 \ 1,451 \ 2,334,386

Foreign currencies translation adjustment

15 28 72 183 - 298

Acquisition 3,449 24,776 40,797 21,413 2,812 93,247

Disposition (2,728) (429) (597) (534) - (4,288)

Depreciation - (21,748) (32,772) (19,685) - (74,205)

Impairment loss - (59) - - - (59)

Classified to assets held for sale

(1,482) (1,123) - - - (2,605)



WOORI BANK


Land BuildingProperties for

business useStructures in leased office

Construction in progress Total

Transfer (*1) - - - - (1,431) (1,431)

Others - - - 617 - 617

Ending balance \ 1,519,991 \ 692,259 \ 87,410 \ 43,468 \ 2,832 \ 2,345,960





Beginning balance \ 1,510,713 \ 696,457 \ 101,593 \ 50,127 \ - \ 2,358,890


(28) 2 (30) (212) - (268)

Acquisition 19 6,972 28,359 17,435 3,780 56,565

Disposition (894) (3,151) (13,534) (473) - (18,052)

Depreciation - (20,264) (36,478) (26,129) - (82,871)

Impairment loss (113) (289) - - - (402)

Classified from assets held for sale

586 1,688 - - - 2,274

Transfer 414 1,915 - - (2,329) -

Others 10,040 7,484 - 726 - 18,250

Ending balance \ 1,520,737 \ 690,814 \ 79,910 \ 41,474 \ 1,451 \ 2,334,386

(*1) \ 1,431 million is transferred to other intangible assets.

15. INTANGIBLE ASSETS

(1) Details of intangible assets are as follows (Unit: Korean Won in millions):

December 31, 2011

GoodwillDevelopment

cost Software

Industrial property

rightsCore

deposit OthersMembership

deposit Total

Acquisition cost \ - \ 14,590 \ 766 \ 239 \ 3,395 \ 338,311 \ 11,701 \ 369,002


- (11,417) (298) (89) (2,801) (207,010) - (221,615)

Net carrying value \ - \ 3,173 \ 468 \ 150 \ 594 \ 131,301 \ 11,701 \ 147,387

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GoodwillDevelopment

cost Software

Industrial property

rightsCore


deposit Total

Acquisition cost \ 209 \ 14,573 \ 364 \ 192 \ 3,353 \ 182,119 \ 12,353 \ 213,163


- (9,404) (207) (61) (2,431) (161,694) - (173,797)

Net carrying value \ 209 \ 5,169 \ 157 \ 131 \ 922 \ 20,425 \ 12,353 \ 39,366

January 1, 2010

GoodwillDevelopment

cost Software

Industrial property

rightsCore


deposit Total

Acquisition cost \ 214 \ 12,426 \ 274 \ 131 \ 3,437 \ 188,865 \ 9,279 \ 214,626


- (6,887) (165) (37) (2,148) (137,246) - (146,483)

Net carrying value \ 214 \ 5,539 \ 109 \ 94 \ 1,289 \ 51,619 \ 9,279 \ 68,143

(2) Details of changes in intangible assets are as follows (Unit: Korean Won in millions):


GoodwillDevelopment

cost Software

Industrial property

rightsCore


deposit Total

Beginning balance \ 209 \ 5,169 \ 157 \ 131 \ 922 \ 20,425 \ 12,353 \ 39,366


(6) 3 - - (2) 235 (124) 106

Acquisition - 18 402 47 - 156,733 254 157,454

Depreciation - (1,999) (91) (28) (326) (46,658) - (49,102)

Impairment loss (203) - - - - - - (203)

Disposal - (18) - - - (865) (782) (1,665)

Transfer (*1) - - - - - 1,431 - 1,431

Ending balance \ - \ 3,173 \ 468 \ 150 \ 594 \ 131,301 \ 11,701 \ 147,387


GoodwillDevelopment

cost Software

Industrial property

rightsCore


deposit Total

Beginning balance \ 214 \ 5,539 \ 109 \ 94 \ 1,289 \ 51,619 \ 9,279 \ 68,143



WOORI BANK


GoodwillDevelopment

cost Software

Industrial property

rightsCore


deposit Total


(5) 11 - - (27) (55) (37) (113)

Acquisition - 2,120 90 61 - 5,369 3,461 11,101

Depreciation - (2,501) (42) (24) (340) (36,464) - (39,371)

Disposal - - - - - (44) (350) (394)

Ending balance \ 209 \ 5,169 \ 157 \ 131 \ 922 \ 20,425 \ 12,353 \ 39,366

(*1) \1,431 million is transferred from construction in progress.

16. OTHER ASSETS

Details of other assets are as follows (Unit: Korean Won in millions):


Suspense receivables:

Suspense receivables in local currency \ - \ 34,812 \ 48,586

Suspense receivables in foreign currencies 20,049 4,359 4,516

Sub-total 20,049 39,171 53,102

Advance payments - 11,448 -

Prepaid expenses:

Prepaid expenses in local currency 189,169 138,407 178,938

Prepaid expenses in foreign currencies 11,475 12,313 13,903

Unearned interest of prepaid expenses 188 382 498

Sub-total 200,832 151,102 193,339

Others

Supplies and others 4,094 2,894 2,128

Non-operative assets:

Non-operative real properties 555 3,639 2,973

Provision for valuation - (787) -

Sub-total 555 2,852 2,973

Total \ 225,530 \ 207,467 \ 251,542

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17. ASSETS HELD FOR SALE

In accordance with K-IFRS No. 1105 ‘Non-current assets held for sale and discontinued operations’, the Group reclassified certain assets into assets held

for sale as of January 1, 2010. Assets held for sale of \2,258 million, \5,185 million, and \7,609 million, respectively, are recorded as of December

31, 2011, December 31, 2010, and January 1, 2010.

18. ASSETS SUBJECTED TO LIEN AND ASSETS ACQUIRED THROUGH A FORECLOSURE

(1) Details of assets subjected to lien are as follows (Unit: Korean Won in millions):

December 31, 2011

Collateral given to Amount Reason for collateral

Due from banks Central bank of Bangladesh and others \ 69,606 Reserves for capital and others

Securities BOK and others 7,093,822 Limitation on total loan exposure and others

Loans Woo-Jeong saving bank 80,536 Collateral for borrowings

\ 7,243,964

December 31, 2010


Due from banks Central bank of Bangladesh and others \ 82,762 Reserves for capital and others



\ 6,962,261

January 1, 2010


Due from banks Morgan Stanley Co., Intl. and others \ 274,009Collateral for credit derivatives transactions and others



\ 7,728,234

(2) Assets acquired through a foreclosure are as follows (Unit: Korean Won in millions):


Land \ - \ 508 \ 521

Building 555 3,640 2,973

Provision for real estate properties - (787) -

\ 555 \ 3,361 \ 3,494



WOORI BANK

19. FINANCIAL LIABILITIES AT FVTPL

(1) Financial liabilities at FVTPL are as follows (Unit: Korean Won in millions):


Financial liabilities held for trading \ 3,187,358 \ 3,220,295 \ 4,080,505

Financial liabilities designated at FVTPL 322,208 1,509,280 1,684,041

Total \ 3,509,566 \ 4,729,575 \ 5,764,546

(2) Details of financial liability held for trading are as follows (Unit: Korean Won in millions):


Borrowings

Securities in short position \ 8,105 \ 18,901 \ 58,487

Derivative liabilities:

Interest rate derivatives 1,500,077 1,371,402 1,280,083

Currency derivatives 1,334,052 1,444,968 2,040,164

Stock derivatives 328,153 357,859 455,973

Credit derivatives - 1,600 203,317

Commodity derivatives 16,971 25,565 42,481

Sub-total 3,179,253 3,201,394 4,022,018

Total \ 3,187,358 \ 3,220,295 \ 4,080,505

(3) Details of financial liabilities designated at FVTPL are as follows (Unit: Korean Won in millions):

December 31, 2011 December 31,2010 January 1, 2010

Debentures:

Debentures in local currency \ 226,433 \ 238,736 \ 271,338

Debentures in foreign currencies 95,775 1,273,039 1,415,654

Discounts on debentures - (2,495) (2,951)

Total \ 322,208 \ 1,509,280 \ 1,684,041

A portion of liabilities which do not meet the definition of financial liabilities held for trading is designated as financial instrument at FVTPL by using fair

value option to eliminate or significantly reduce a measurement or recognition inconsistency that would otherwise arise from recognizing assets and

liabilities on a different basis.

(4) Credit risk adjustments to financial liabilities designated at FVTPL are as follows (Unit: Korean Won in millions):


Financial liabilities designated at FVTPL \ 322,208 \ 1,509,280 \ 1,684,041

Changes in fair value for credit risk adjustments 6,462 (564) (10,996)

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Accumulated changes in credit risk adjustments \ (26,470) \ 5,285 \ (10,996)

(5) Financial liabilities at FVTPL’s carrying amount and face amount at maturity are as follows (Unit: Korean Won in millions):


Carrying amount \ 322,208 \ 1,509,280 \ 1,684,041

Face amount at maturity 296,498 1,472,864 1,675,282

Difference \ 25,710 \ 36,416 \ 8,759

20. DEPOSITS DUE TO CUSTOMERS (“ DEPOSITS ”)

(1) Details of deposits by interest type are as follows (Unit: Korean Won in millions):


Deposits in local currency:

Deposits on demand:

Interest bearing \ 2,450,041 \ 2,710,250 \ 2,360,115

Non-interest bearing 8,401,386 4,740,959 5,130,601

Money trust 892 912 906

Deposits at termination 137,613,700 133,984,449 117,979,005

Mutual installment 82,823 110,314 144,417

Sub-total 148,548,842 141,546,884 125,615,044

Certificate of deposits 959,458 1,764,677 10,457,581

Other deposits:

Deposits on notes payable 2,479,546 3,458,658 3,024,917

Deposits on CMA 1,752,379 2,150,747 1,554,060

Sub-total 4,231,925 5,609,405 4,578,977

Deposits in foreign currencies:

Interest bearing 9,178,643 7,558,144 8,395,791

Non-interest bearing 1,192,566 875,623 1,350,883

Sub-total 10,371,209 8,433,767 9,746,674


Total \ 164,092,476 \ 157,314,309 \ 150,124,550



WOORI BANK

(2) Details of deposits by customers are as follows (Unit: Korean Won in millions):


Individuals \ 53,634,183 \ 49,341,193 \ 45,267,536

Corporations 50,557,685 51,564,091 49,650,186

Banks 22,427,121 20,276,161 20,919,348

Government agencies 12,938,301 13,034,448 12,898,296

Other financial institutions 7,337,791 6,084,302 4,240,488

Government 6,269,995 6,050,868 7,319,476

Non-profit corporations 4,204,331 4,150,219 3,484,399

Educational organizations 2,509,585 2,453,360 2,288,067

Foreign corporations 1,333,507 785,539 435,467

Others 2,898,935 3,614,552 3,895,013


Total \ 164,092,476 \ 157,314,309 \ 150,124,550

21. BORROWINGS AND DEBENTURES

(1) Details of borrowings are as follows (Unit: Korean Won in millions):

December 31, 2011

Lender Interest rate (%) Amount

Borrowings in local currency:

Borrowings from the BOK BOK 1.5 \ 651,854

Borrowing from government fundsKorea Environment Management Corporation and others

0.0 ~ 3.8 1,936,670

Others Korea Finance Corporation and others 0.8 ~ 3.7 2,090,819

Sub-total 4,679,343

Borrowings in foreign currencies Wilshire State Bank and others 0.3 ~ 5.6 9,862,373

Call-money Banks 0.2 ~ 4.7 2,908,505

Bonds sold under repurchase agreements Others 2.2 ~ 21.2 985,141

Bills sold Others 0.0 ~ 3.7 96,453

Securitized borrowings Others 2.7 ~ 7.8 644,900

Present value discount (2,073)

Total \ 19,174,642

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Borrowings from the BOK BOK 1.3 \ 771,370

Borrowing from government fundsKorea Environment Management Corpo-ration and others

0.0 ~ 5.0 2,007,750

Others Korea Finance Corporation and others 3.0 ~ 3.5 2,355,662

Sub-total 5,134,782

Borrowings in foreign currencies Wachovia Bank and others 0.5 ~ 6.4 7,872,885

Call-money Banks 0.1 ~ 5.0 4,326,568





Total \ 18,982,971

January 1, 2010



Borrowings from the BOK BOK 1.3 \ 1,107,226

Borrowing from government fundsKorea Environment Management Corpo-ration and others

0.0 ~ 5.3 2,028,486

OthersKorea International Trade Association and others

3.0 ~ 3.8 2,977,304

Sub-total 6,113,016

Borrowings in foreign currencies Deutsche Bank and others 0.6 ~ 7.1 8,216,213

Call-money Banks 0.2 ~ 2.0 5,283,801





Total \ 20,752,335

(2) Details of other monetary organizations’ borrowings are as follows (Unit: Korean Won in millions):

December 31, 2011

BOK General banks Others Total

Borrowings in local currency \ 651,854 \ 641,360 \ 1,229 \ 1,294,443

Borrowings in foreign currencies - 4,940,001 4,922,372 9,862,373



WOORI BANK

December 31, 2011


Call-money - 1,165,105 1,743,400 2,908,505

Bonds sold under repurchase agreements

- - 985,141 985,141

Total \ 651,854 \ 6,746,466 \ 7,652,142 \ 15,050,462

December 31, 2010


Borrowings in local currency \ 771,370 \ 735,379 \ 58,002 \ 1,564,751


Call-money - 1,544,568 2,782,000 4,326,568


- - 817,345 817,345

Total \ 771,370 \ 6,244,642 \ 7,565,537 \ 14,581,549

January 1, 2010


Borrowings in local currency \ 1,107,226 \ 751,286 \ 12,601 \ 1,871,113


Call-money - 1,769,701 3,514,100 5,283,801


- - 465,821 465,821

Total \ 1,107,226 \ 7,317,186 \ 7,412,536 \ 15,836,948

(3) Details of debentures are as follows (Unit: Korean Won in millions):


Interest rate (%) Amount



Carrying value of bond:

Ordinary bonds 0.5 ~ 10.5 \ 14,901,618 0.6 ~ 10.5 \ 16,456,439 0.5 ~ 10.5 \ 18,908,978

Subordinated bonds 4.7 ~ 10.3 4,950,864 5.1 ~ 10.3 3,770,616 5.0 ~ 10.3 4,604,877

Sub-total 19,852,482 20,227,055 23,513,855

Discount on bonds (40,669) (34,628) (37,752)

Total \ 19,811,813 \ 20,192,427 \ 23,476,103

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22. PROVISIONS

(1) Details of provisions are as follows (Unit: Korean Won in millions):


Provisions for guarantees (*1) \ 437,557 \ 284,599 \ 278,191

Provisions for unused commitments 116,444 152,355 172,328

Provision for credit card point 701 10,721 11,136

Other provisions 19,603 30,879 28,228

Asset retirement obligation 11,080 18,159 16,984

Retirement benefit obligation 22,227 23,116 43,894

\ 607,612 \ 519,829 \ 550,761

(*1) Provision for guarantee is including provision for financial guarantee of \186,638 million, \80,196 million, and \197,860 million as of December 31, 2011, December 31, 2010, and January 1, 2010, respectively.

(2) Changes in provision except asset retirement obligation and retirement benefit obligation are as follows (Unit: Korean Won in millions):


Provisions for guarantees

Provisions for un-used commitments

Provision for credit card point Other provisions Total

Beginning balance \ 284,599 \ 152,355 \ 10,721 \ 30,879 \ 478,554

Provisions provided 147,120 2,391 9,339 1,379 160,229

Provisions used and others 11,202 1 (19,359) (12,655) (20,811)

Reversal of unused amount (5,251) (38,310) - - (43,561)

Foreign exchange translation adjustment

(113) 7 - - (106)

Ending balance \ 437,557 \ 116,444 \ 701 \ 19,603 \ 574,305


Provisions for guarantees

Provisions for unused commitments

Provision for credit card point Other provisions Total

Beginning balance \ 278,191 \ 172,328 \ 11,136 \ 28,228 \ 489,883

Provisions provided 194,166 4,027 22,429 4,236 224,858

Provisions used and others (19,922) (26) (22,844) 13,355 (29,437)

Reversal of unused amount (167,794) (23,959) - (14,940) (206,693)

Foreign exchange translation adjustment

(42) (15) - - (57)

Ending balance \ 284,599 \ 152,355 \ 10,721 \ 30,879 \ 478,554



WOORI BANK

(3) Changes in asset retirement obligation are as follows (Unit: Korean Won in millions):




Provisions provided 617 726

Provisions used (342) (190)

Discount rate adjustment (7,377) -

Amortization 23 639

Ending balance \ 11,080 \ 18,159

23. RETIREMENT BENEFIT OBLIGATION

(1) Details of retirement benefit obligation are as follows (Unit: Korean Won in millions):


Projected retirement benefit obligation \ 234,663 \ 139,539 \ 139,403

Fair value of plan assets (212,436) (116,423) (95,509)

Liability recog nized \ 22,227 \ 23,116 \ 43,894

(2) Details of post-employee benefits recognized in profit and loss are as follows (Unit: Korean Won in millions):

For the year ended December 31, 2011 For the year ended December 31, 2010

Current service cost \ 82,794 \ 84,158

Interest cost 7,464 5,887

Expected return of plan assets (5,697) (5,784)

Actuarial losses 16,320 (3,099)

Losses on the curtailment or settlement (299) -

\ 100,582 \ 81,162

For the year ended December 31, 2011 the Group appropriate its contribution retirement benefit at the expense of \2,439 million.

(3) Changes in carrying value of retirement benefit obligation are as follows (Unit: Korean Won in millions):



Service cost 82,794 84,158

Interest cost 7,464 5,887

Actuarial loss (gain) 15,361 (5,496)

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Foreign currencies translation Adjustments 104 21

Retirement benefit paid (9,035) (84,434)

Losses on the curtailment or settlement (1,564) -

Ending balance \ 234,663 \ 139,539

(4) Changes in plan assets are as follows (Unit: Korean Won in millions):



Expected return on plan assets 5,697 5,784

Actuarial loss (959) (2,398)

Employer’s contributions 96,377 58,079

Retirement benefit paid (3,643) (40,551)

Curtailment or settlement (1,265) -

Others (194) -

Ending balance \ 212,436 \ 116,423

(5) Actuarial assumption used in retirement benefit obligation assessment are as follows (Unit: Korean Won in millions):


Discount rate 4.76% 5.65% 5.31%

Inflation rate 2.30% 3.20% 3.20%

Expected rate of return on plan assets 4.49% 4.24%5.67%

Future wage growth rate 5.31% 5.74% 5.85%

Mortality ratio Issued by Korea Insurance Development Institute

Expected rate of return on plan assets as of December 31, 2011, 2010 and January 1, 2010, which were considered with the expect rate of return on

retirement pension, retirement trust and retirement insurances, are calculated as 4.49%, 4.24% and 5.67%, respectively.

(6) Details of plan assets are as follows (Unit: Korean Won in millions):


Deposits \ 131,081 \ 70,939 \ 27,453


Beneficiary certificates 49,480 27,209 23,293

Others 26,618 14,300 32,094

Total \ 212,436 \ 116,423 \ 95,509



WOORI BANK

(7) The realized returns on plan assets for the year ended in December 31, 2011 and 2010 are \ 4,738 million and \ 3,386 million, respectively.

(8) Details of retirement benefit obligation for recent 3 years are as follows (Unit: Korean Won in millions):

December 31, 2011 December 31, 2010 January 1,2010

retirement benefit obligation recognized \ 22,227 \ 23,116 \ 43,894

Present value of retirement benefit obligation

234,663 139,539 139,403

Fair value of plan assets \ (212,436) \ (116,423) \ (95,509)

24. OTHER FINANCIAL LIABILITIES AND OTHER LIABILITIES

Other financial liabilities and other liabilities are as follows (Unit: Korean Won in millions):


Other financial liabilities:

Accounts payable \ 6,112,868 \ 1,999,398 \ 1,743,906

Accrued expenses 2,651,400 2,188,579 1,891,312

Others 59,377 55,603 43,779

Discount for others (3,195) (4,411) (2,290)

Borrowing from thrust accounts 2,381,862 1,984,695 2,668,787

Deposits 256,725 264,225 172,680

Agency business revenue 153,701 218,343 197,986

Domestic exchanges payable 2,968,232 96,834 341,572

Foreign exchanges payables 694,362 580,354 372,375

Others on credit cards 101,106 101,163 85,575

Agency and others 970,531 1,315,154 913,399

Sub-total 16,346,969 8,799,937 8,429,081

Other liabilities:

Unearned income 209,026 196,454 195,228

Other miscellaneous liabilities 235,523 81,303 497,954

Sub-total 444,549 277,757 693,182

Total \ 16,791,518 \ 9,077,694 \ 9,122,263

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25. DERIVATIVES

(1) Details of derivative assets and derivative liabilities are as follows(Unit: Korean Won in millions):

December 31, 2011

Notional amount

Assets Liabilities

Fair valuehedge

Cash flow hedge

For trading

Fair valuehedge

Cash flow hedge

For trading

Interest rHate:

Swaps \ 176,139,868 \ 326,413 \ - \ 1,386,661 \ 12,885 \ 10,518 \ 1,469,153

Futures 298,253 - - - - - -

Long options 2,445,000 - - 36,254 - - -

Short options 2,771,136 - - - - - 30,924

Currency:

Forwards 35,359,148 - - 749,082 - - 311,625

Swaps 27,243,579 - - 722,915 - 2,179 995,488

Futures 1,065,618 - - - - - -

Long options 1,957,680 - - 395,419 - - -

Short options 1,890,912 - - - - - 26,938

Equity:

Futures 18,945 - - - - - -

Long options 591,620 - - 53,706 - - -

Short options 1,177,223 - - - - - 328,153

Others:

Long options 234,408 - - 11,683 - - -

Short options 239,000 - - - - - 11,793

Forwards 10,516 - - 239 - - 253

Swaps 157,938 - - 4,424 - - 4,926

Futures 300 - - - - - -

Total \ 251,601,144 \ 326,413 \ - \ 3,360,383 \ 12,885 \ 12,697 \ 3,179,253

December 31, 2010

Notional amount

Assets Liabilities

Fair valuehedge

Cash flow hedge

For trading

Fair valuehedge

Cash flow hedge

For trading

Interest rate:

Swaps \ 204,633,092 \ 132,267 \ 957 \ 1,218,147 \ 23,725 \ 10,694 \ 1,328,003

Futures 31,020 - - - - - -

Long options 4,225,000 - - 61,558 - - -

Short options 5,076,534 - - - - - 43,398



WOORI BANK

December 31, 2010

Notional amount

Assets Liabilities

Fair valuehedge

Cash flow hedge

For trading

Fair valuehedge

Cash flow hedge

For trading

Currency:

Forwards 27,404,892 - - 865,796 - - 373,681

Swaps 24,884,530 - - 838,787 - - 1,014,073

Futures 870,966 - - - - - -

Long options 2,360,647 - - 420,078 - - -

Short options 2,295,334 - - - - - 57,214

Equity:

Futures 46,249 - - - - - -

Long options 396,246 - - 39,279 - - -

Short options 1,243,991 - - - - - 357,859

Others:

Long options 87,081 - - 11,821 - - -

Short options 87,615 - - - - - 11,925

Forwards 198,378 - - 6,065 - - 5,496

Swaps 312,150 - - 7,553 - - 9,744

Futures 295 - - - - - -

Total \ 274,154,020 \ 132,267 \ 957 \ 3,469,084 \ 23,725 \ 10,694 \ 3,201,393

January 1, 2010

Notional amount

Assets Liabilities

Fair valuehedge

Cash flow hedge

For trading

Fair valuehedge

Cash flow hedge

For trading

Interest rate:

Swaps \ 137,303,775 \ 104,986 \ 2,522 \ 1,099,587 \ 52,312 \ 12,285 \ 1,219,477

Futures 29,327 - - - - - -

Long options 6,013,380 - - 76,513 - - -

Short options 6,164,964 - - - - - 60,606

Currency:

Forwards 34,357,927 - - 1,357,750 - - 603,985

Swaps 19,640,707 - - 721,377 - - 1,324,687

Futures 668,498 - - - - - -

Long options 3,049,897 - - 598,523 - - -

Short options 3,198,520 - - - - - 111,492

Equity:

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January 1, 2010

Notional amount

Assets Liabilities

Fair valuehedge

Cash flow hedge

For trading

Fair valuehedge

Cash flow hedge

For trading

Futures 179,446 - - - - - -

Long options 429,370 - - 47,338 - - -

Short options 2,077,448 - - - - - 455,973

Others:

Long options 304,145 - - 19,845 - - -

Short options 312,065 - - - - - 22,949

Forwards 82,213 - - 1,661 - - 1,246

Swaps 875,694 - - 18,671 - - 221,602

Futures 5,752 - - - - - -

Total \ 214,693,128 \ 104,986 \ 2,522 \ 3,941,265 \ 52,312 \ 12,285 \ 4,022,017

The above disclosure includes all derivatives regardless of the financial instrument categories. Derivatives held for trading purpose classified into financial

assets or liabilities at FVTPL (see notes 7 and 19) and derivatives for hedging are stated as a separate line item at the consolidated statements of financial

position.

(2) Gains or losses on valuation of derivatives are as follows (Unit: Korean Won in millions):


Loss from fair value hedged item \ (195,534) \ (123,202)

Gain from fair value hedging instrument 182,860 79,042

26. DAY 1 PROFITS AND LOSSES

Changes in deferred day 1 profits and losses are as follows (Unit: Korean Won in millions):

For the year endedDecember 31, 2011


Beginning balance \ 5,300 \ -

New transactions 4,580 7,530

Amounts recognized in profits or loss (5,310) (2,230)

Ending balance \ 4,570 \ 5,300

Although no observable elements were available in active market to determine fair value of the financial instruments, valuation techniques were

utilized to determine fair value of such instruments. These financial instruments are recorded at fair values at the time of purchase even though there

were differences noted on the transaction price and fair value obtained from valuation techniques. The table above shows the differences yet to be

recognized in net income and the details.



WOORI BANK

27. CAPITAL STOCK, HYBRID SECURITIES AND CAPITAL SURPLUS

(1) Capital stock, hybrid securities and capital surplus are as follows (Unit: Korean Won in millions):

December 31, 2011 December 31, 2010 January1, 2010

Capital Stock:

Common Stock \ 3,479,783 \ 3,479,783 \ 3,479,783

Preferred Stock 350,000 350,000 350,000

Hybrid securities 1,681,807 2,181,806 2,181,806

Capital Surplus:

Capital in excess of par value 346,880 346,238 346,880

Other capital surplus 465,136 465,183 465,113

Total \ 6,323,606 \ 6,823,010 \ 6,823,582

(2) The number of authorized shares is as follows (Unit: Korean Won in millions):


Authorized shares of capital stock 3,000,000,000 shares 3,000,000,000 shares 3,000,000,000 shares

Par value \ 5,000 \ 5,000 \ 5,000

Issued shares of capital stock 765,956,580 shares 765,956,580 shares 765,956,580 shares

(3) Hybrid securities classified as equity are as follows (Unit: Korean Won in millions):

Issue date MaturityInterest

Rates (%) December 31, 2011 December 31, 2010 January 1, 2010

Local currency2008. 6. 20. 2038. 6. 19. 7.7 \ 254,633 \ 254,633 \ 254,633

2009. 3. 31. 2039. 3. 30. 6.7 499,998 999,997 999,997

Foreign currencies

2007. 5. 21. 2037. 5. 20. 6.2 927,176 927,176 927,176

\ 1,681,807 \ 2,181,806 \ 2,181,806

The Group can exercise its right to early repayment after five or ten years after issuing hybrid securities, and at the date of maturity, the contractual

agreements allow the Group to indefinitely extend the maturity date with the same contractual terms. In addition, the Group decides not to pay the

dividends of common share at general shareholder's meeting, the Group may not pay interest on the hybrid securities.

(4) Details of capital surplus are as follows (Unit: Korean Won in millions):


Capital in excess of par value

Increase by issuance of preferred stock and common stock issue cost

\ 346,880 \ 346,880 \ 346,880

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Other capital surplus

Increase by acquisition of banking segment of formerly Peace Bank

31,903 31,903 31,903

Gain on disposal of subsidiary stock (formerly Woori Investment Trust Management Co., Ltd.)

17,392 17,392 17,392

Loss on disposal of subsidiary stock (formerly Woori Investment Securities Co., Ltd.)

(55,369) (55,369) (55,369)

Increase by merger with formerly Woori Investment Bank Co., Ltd.

138,682 138,682 138,682

Increase by merger with formerly Woori Card 330,395 330,395 330,395

Increase by additional acquisition of interests in P.T. Bank Woori Indonesia

2,133 1,538 2,110

Sub-total 465,136 464,541 465,113

Total \ 812,016 \ 811,421 \ 811,993

28. OTHER EQUITY

Changes in other equity are as follows (Unit: Korean Won in millions):


Beginning balance Others Reclassification

Income tax effect

Ending balance

Gain (loss) on valuation of AFS financial assets

\ 939,938 \ 100,304 \ (581,215) \ 84,401 \ 543,428

Share of other comprehensive gain (loss) on associates

20,857 (3,920) (24,788) 6,360 (1,491)

Gain (loss) on valuation of cash flow hedge

(9,298) 7,617 (749) - (2,430)

Gain (loss) on overseas business translation and others

(13,237) 15,818 - (3,703) (1,122)

Total \ 938,260 \ 119,819 \ (606,752) \ 87,058 \ 538,385



Income tax effect

Ending balance

Gain (loss) on valuation of AFS financial assets

\ 1,159,619 \ 236,340 \ (524,737) \ 68,716 \ 939,938

Share of other comprehensive gain (loss) on associates

43,112 (28,532) - 6,277 20,857

Gain (loss) on valuation of cash flow hedge

(10,468) 5,164 (3,994) - (9,298)



WOORI BANK



Income tax effect

Ending balance

Gain (loss) on overseas business translation and others

- (14,535) - 1,298 (13,237)

Total \ 1,192,263 \ 198,437 \ (528,731) \ 76,291 \ 938,260

For the change in gain (loss) on valuation of AFS financial assets, others represent the change from the valuation for the period, and reclassification

adjustments show disposal or recognition of impairment losses on AFS financial assets.

29. RETAINED EARNINGS

Changes in retained earnings are as follows (Unit: Korean Won in millions):


Legal Reserve

Legal reserve \ 1,208,332 \ 1,094, 275 \ 994,123

Other legal reserve 59,595 52,616 37,654

Sub-total 1,267,927 1,146,891 1,031,777

Voluntary Reserve

Business rationalization reserve 8,000 8,000 8,000

Reserve for financial structure improvement

235,400 235,400 212,000

Additional reserve 6,799,544 6,193,044 5,653,044

Other voluntary reserve 6,100 6,100 100

Sub-total 7,049,044 6,442,544 5,873,144

Retained earnings before appropriation 2,939,236 2,129,142 1,993,349

Total \ 11,256,207 \ 9,718,577 \ 8,898,270

1) Legal reserve

In accordance with the Act of Banking Law, legal reserve are appropriated at least one tenth of the earnings after tax on every dividend declaration, not

exceeding the paid in capital. This reserve may not be used other than for offsetting a deficit or transferring to capital.

2) Other legal reserve

Other legal reserves were appropriated in the branches located in Japan, Vietnam and Bangladesh according to the banking laws of Japan, Vietnam

and Bangladesh, and may be used to offset any deficit incurred in those branches.

3) Business rationalization reserve

Pursuant to the Tax Exemption and Reduction Control Law, the Group was previously required to appropriate, as a reserve for business rationalization,

amounts equal to tax reductions arising from tax exemptions and tax credits up to December 31, 2001. The requirement was no longer effective from 2002.

4) Reserve for financial structure improvement

In 2002, the Finance Supervisory Services recommended banks in Korea to appropriate at least ten percent of net income after accumulated deficit for

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financial structure improvement, until simple capital ratio equals 5.5 percent. This reserve is not available for payment of cash dividends; however, it can

be used to reduce a deficit or be transferred to capital.

5) Reserve for research and human development

In accordance with the Tax Reduction and Exemption Control Act, the Group reserves tax reserves (reserve when taxable deduction under reporting

adjustment during calculating income tax) when the Group dispose of retain earning. However, this reserve cannot allocate the amount of purchase

return under related tax law.

6) Additional reserve and other voluntary reserve

Additional reserve and other voluntary reserve were appropriated for capital adequacy and other management purposes.

30. PLANNED REGULATORY RESERVE FOR CREDIT LOSS

In accordance with Article 29 of the Regulation on Supervision of Banking Business (“RSBB”), if the estimated provisions for credit loss under K-IFRS

for the accounting purpose are lower than those in accordance with the provisions under RSBB, the Group shall disclose the difference as the planned

regulatory reserve for credit loss.

(1) Balance of the planned regulatory reserve for credit losses is as follows (Unit: Korean Won in millions):

December 31, 2011 December 31, 2010

Beginning \ - \ -

Amount estimated to be appropriated 1,123,866 513,676

Ending \ 1,123,866 \ 513,676

(2) Planned reserves provided, adjusted net income after the planned reserves provided and adjusted earnings per share after the planned reserves provided are as follows (Unit: Korean Won in millions, except for earning per share):


Planned reserves provided \ 610,190

Adjusted net income after the planned reserves provided (*1) 1,459,182

Adjusted Earnings per share after the planned reserves provided (*1) \ 1,811

(*1) Adjusted net income after the planned reserves provided and adjusted earnings per share after the planned reserves provided are not in accordance with K-IFRS and calculated on the assumption that provision of regulatory reserve for credit loss before income tax is adjusted to the profit.



WOORI BANK

31. DIVIDENDS

Details of dividends and payout ratio are as follows (Unit: Korean Won in millions):



Common stockPreferred Stock (*1) Common stock

Preferred Stock (*1)

Shares outstanding (million) 696 70 696 70

Par value per share \ 5,000 \ 5,000 \ 5,000 \ 5,000

Capital stock (million) 3,479,783 350,000 3,479,783 350,000

Number of shares issued (million) 696 70 696 70

Cash dividend per share \ 608 \ 800 \ 477 \ 800

Total cash dividend (million) 423,053 56,000 331,725 56,000

Dividend rate 12.2% 16.0% 9.5% 16.0%

Net income (million) 2,069,371 2,069,371 1,262,104 1,262,104

Payout ratio (*2) 20.4% 2.7% .26.3% 4.4%

(*1) Preferred stock is non-cumulative and non-participating and its dividend rate is 8% on issuance price per share.

(*2) Payout ratio for the year ended December 31, 2010 is calculated in accordance with K-IFRS and payout ratio of common stock and preferred stock under K-GAAP for the year ended December 31, 2010 were 29.9% and 5.1%, respectively. In addition, payout ratio of common stock and preferred stock after reflecting planned regulatory reserve for credit loss for the year ended December 31, 2011 are 29.0% and 3.8%, respectively.

32. NET INTEREST INCOME

(1) Details of interest income recognized are as follows (Unit: Korean Won in millions):



Financial asset at FVTPL:

Interest of securities:

Securities in local currency \ 196,756 \ 203,565

Securities in foreign currencies - 1,090

Interest of other assets 89,824 79,777

Sub-total 286,580 284,432

AFS financial asset:

Interest of securities in local currency:

Interest of government bonds 142,463 124,031

Interest of finance debentures 124,349 133,856

Interest of debentures 42,479 18,463

Interest of beneficiary certificate 712 891

Interest of other securities 1 -

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Interest of securities in foreign currencies 5,461 7,641

Sub-total 315,465 284,882

HTM financial asset:

Interest of securities in local currency:

Interest of government bonds 232,601 146,243

Interest of finance debentures 225,033 364,898

Interest of debentures 197,288 89,714

Others 709 -

Interest of securities in foreign currencies 8,305 10,568

Sub-total 663,936 611,423

Loans and receivables:

Interest on due from banks:

Interest on due from banks in local currency 29,136 4,070

Interest on due from banks in foreign currencies 18,116 8,364

Interest of loans:

Interest on loans in local currency 8,218,926 7,642,649

Interest on loans in foreign currencies 438,327 465,369

Interest on domestic usance bills 49,049 46,040

Interest on off-shore loans 497 1,234

Interest on inter-bank loans 58,084 24,880

Interest on call loans 87,756 79,993

Interest on bills bought 14,160 8,318

Interest on foreign currencies 120,677 145,265

Interest on payment for acceptances and guarantees 4,292 3,311

Interest on bonds sold under repurchase agreements 100,061 58,119

Interest on privately placed bonds 119,723 163,199

Interest on credit card receivables 996,012 1,007,690

Interest on other loans 39,350 40,315

Interest of other assets 99,111 101,495

Sub-total 10,393,277 9,800,311

Total \ 11,659,258 \ 10,981,048

Interest income accrued from impaired loan is \140,933 million and \62,257 million for the years ended December 31, 2011 and 2010, respectively.



WOORI BANK

(2) Interest expense recognized are as follows (Unit: Korean Won in millions):



Interest of deposits:

Interest on demand deposits in local currency \ 20,116 \ 13,044

Interest on deposits in foreign currencies 33 33

Interest on saving deposits in local currency 4,121,885 3,750,353

Interest on mutual installment 3,590 4,726

Interest on money trust 64,966 279,814

Interest on certificate of deposits 175,043 121,560

Interest on other deposits 91,210 81,645

Sub-total 4,476,843 4,251,175

Interest of borrowings:

Interest on borrowings in local currency 148,255 172,634

Interest on borrowings in foreign currencies 115,342 105,731

Interest on call money 57,627 45,795

Interest on bills sold 19,992 13,227

Interest on bonds sold under repurchase agreements 2,582 2,320

Sub-total 343,798 339,707

Interest of debentures:

Interest on debentures in local currency 791,917 976,662

Interest on debentures in foreign currencies 223,042 282,629

Sub-total 1,014,959 1,259,291

Others 98,062 104,113

Total \ 5,933,662 \ 5,954,286

33. NET FEES AND COMMISSIONS INCOME

(1) Details of fees and commissions income occurred are as follows (Unit: Korean Won in millions):



Commission received:

Commission received in local currency \ 501,697 \ 448,127

Commission received in foreign currencies 201,230 193,402

Sub-total 702,927 641,529

Commission fees 97,386 100,354

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Commission received on project financing

22,847 15,544

Commission received on credit card:

Credit card in local currency 12,800 10,899

Credit card in foreign currencies 21,113 -

Prepaid card 1,375 1,903

Debit card 777 569

Sub-total 36,065 13,371

CMA management charges 5,553 6,131

Commission received on securities 71,688 92,027

Other commission received 20,688 23,049

Commission received on trust business 36,775 39,525

Total \ 993,929 \ 931,530

(2) Details of fees and commissions expense occurred are as follows (Unit: Korean Won in millions):



Commission expenses:

Commission expenses in local currency \ 61,909 \ 55,780

Commission expenses in foreign currencies 22,722 19,607

Sub-total 84,631 75,387

Commission expenses on credit card:

Credit card in local currency 337,794 324,179

Credit card in foreign currencies 2,715 3,392

Debit card 771 527

Sub-total 341,280 328,098

Commission expenses on securities 140 580

Commission expenses on brand loyalty 58,065 32,408

Commission expenses on trust business 1,822 1,264

Total \ 485,938 \ 437,737



WOORI BANK

34. DIVIDEND INCOME

Details of dividend income recognized are as follows (Unit: Korean Won in millions):



Financial assets at FVTPL:

Dividend income in local currency \ 7,484 \ 3,820


Dividend in local currency 111,595 113,088

Dividend in foreign currencies 4,071 2,187

Sub-total 115,666 115,275

Total \ 123,150 \ 119,095

35. GAINS AND LOSSES ON FINANCIAL ASSETS AT FVTPL

(1) Details of gains and losses on financial assets at FVTPL are as follows (Unit: Korean Won in millions):



Gains and losses on financial assets held for trading \ 78,797 \ 58,089

Gains and losses of financial assets designated at FVTPL 27,885 (42,876)

Total \ 106,682 \ 15,213

(2) Details of gains and losses on financial assets held for trading are as follows (Unit: Korean Won in millions):



Gain (loss) on securities:

Gain on retirement of securities in local currency \ 1 \ 624

Loss on retirement of securities in local currency (29) (11)

Sub-total (28) 613

Gain on transaction of securities in local currency 57,301 145,397

Loss on transaction of securities in local currency (109,119) (54,616)

Sub-total (51,818) 90,781

Gain on valuation of securities in local currency 15,598 39,626

Loss on valuation of securities in local currency (18,559) (1,990)

Sub-total (2,961) 37,636

Gain (loss) on securities sub-total (54,807) 129,030

Gain (loss) on derivatives (for trading):

Gain on transaction and valuation of derivatives:

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Gain on interest rates derivatives 1,843,855 2,040,078

Loss on interest rates derivatives (1,841,678) (2,130,406)

Sub-total 2,177 (90,328)

Gain on currencies derivatives 3,556,354 3,850,443

Loss on currencies derivatives (3,470,563) (3,796,031)

Sub-total 85,791 54,412

Gain on equity derivatives 176,187 221,787

Loss on equity derivatives (139,137) (273,846)

Sub-total 37,050 (52,059)

Gain on other derivatives 83,429 206,790

Loss on other derivatives (81,591) (203,172)

Sub-total 1,838 3,618

Gain (loss) on derivatives sub-total 126,856 (84,357)

Gain (loss) on other financial instruments:

Gain on transaction of other financial instruments 8,464 11,936

Loss on transaction of other financial instruments (2,130) (1,270)

Sub-total 6,334 10,666

Gain on valuation of other financial instruments 416 2,750

Loss on valuation of other financial instruments (2) -

Sub-total 414 2,750

Gain on other financial instruments sub-total 6,748 13,416

Total \ 78,797 \ 58,089

(3) Details of gains and losses of financial instrument at FVTPL are as follows (Unit: Korean Won in millions):



Gain on transaction of securities:

Loss on redemption of securities in foreign currencies \ - \ (589)

Gain on transaction of securities in local currency - 15

Gain on transaction of securities in foreign currencies - 1,124

Sub-total - 550

Gain (loss) on other financial instruments:

Gain on disposition of other financial instruments 18,861 2,516

Gain (loss) on valuation of other financial instruments 9,024 (45,942)

Sub-total 27,885 (43,426)

Total \ 27,885 \ (42,876)



WOORI BANK

36. GAINS AND LOSSES ON AFS FINANCIAL ASSETS

Details of gains and losses on AFS financial assets recognized are as follows (Unit: Korean Won in millions):



Gain on transaction of securities:

Gain on redemption of securities in local currency \ 72 \ 99

Gain on redemption of securities in foreign currencies - 2,035

Gain on transaction of securities in local currency 1,194,274 960,944

Gain on transaction of securities in foreign currencies 5,715 17,340

Sub-total 1,200,061 980,418

Reversal of impairment loss (Impairment loss):

Securities in local currency (163,529) 30,101

Securities in foreign currencies (19,786) (31,973)

Sub-total (183,315) (1,872)

Total \ 1,016,746 \ 978,546

37. GAIN (LOSS) ON HTM FINANCIAL ASSETS

There is no gain or loss on HTM financial assets for the years ended December 31, 2011 and 2010, respectively. In addition, details of interest income

of HTM financial assets are stated in note 32.

38. IMPAIRMENT LOSSES FOR LOANS, OTHER RECEIVABLES, GUARANTEES AND UNUSED COMMITMENTS

Impairment losses for loans, other receivables, guarantees and unused commitments are as follows (Unit: Korean Won in millions):



Loans:

Bad debt expenses \ (1,787,955) \ (2,625,672)

Reversal of provision for loan losses and receivables 77,302 136,029

Sub-total (1,710,653) (2,489,643)

Guarantees:

Provision for guarantee (147,120) (194,166)

Reversal of provision for guarantee 5,251 167,794

Sub-total (141,869) (26,372)

Commitments:

Provision for unused commitment (2,391) (4,027)

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Reversal of provision for unused commitment 38,310 23,959

Sub-total 35,919 19,932

\ (1,816,603) \ (2,496,083)

39. GENERAL AND ADMINISTRATIVE EXPENSES AND NET OTHER OPERATING INCOME (EXPENSE)

(1) Details of general and administrative expenses are as follows (Unit: Korean Won in millions):



Salaries Short-term salaries \ 1,044,031 \ 870,098

Severance benefits-defined benefit 100,582 81,162

Severance benefits- defined contribution 2,439 -

Termination 42,907 32,019

Sub-total 1,189,959 983,279

Depreciation 126,740 125,682

Other general andadministrative expenses

Employee benefits 259,620 239,841

Reimburse 61,198 61,885

Travel 6,815 6,192

Operating promotion expenses 42,245 36,460

Rent 187,020 178,751

Maintenance 12,004 9,966

Advertising expenses 69,632 70,457

Taxes and dues 109,188 100,027

Insurance 3,108 3,127

Computer related expenses 245,111 245,788

Service fees 163,277 130,332

Communications 32,905 28,939

Printings 10,901 11,293

Water, light and heating 13,192 13,477

Supplies 6,025 5,975

Vehicle maintenance 9,479 8,184

Other expenses 134 517

Others 4,240 3,334

Sub-total 1,236,094 1,154,545

Total \ 2,552,793 \ 2,263,506



WOORI BANK

(2) Details of net other operating incomes (expenses) recognized are as follows (Unit: Korean Won in millions):



Other operating incomes \ 8,545,805 \ 7,725,743

Other operation expenses (8,973,490) (8,101,934)

Net other operating expenses \ (427,685) \ (376,191)

(3) Details of other operating incomes recognized are as follows (Unit: Korean Won in millions):



Gain on transaction of foreign exchange \ 8,104,932 \ 7,358,105

Gain on derivatives (for hedge) 193,374 129,755

Gain on fair value hedging derivatives 4,921 40,575

Rental incomes 19,168 16,662

Gain on transaction of other assets 65,166 357

Reversal of impairment of other assets 321 966

Gain on restoration 105 33

Gain on disposal of loans 51,910 120,087

Gain on investment in associates 26,231 -

Others 79,677 59,203

\ 8,545,805 \ 7,725,743

(4) Details of other operating expenses recognized are as follows (Unit: Korean Won in millions):



Loss on transaction of foreign exchange \ 7,955,322 \ 7,109,106

Loss on derivatives (for hedge) 10,513 50,713

Loss on fair value hedging derivatives 200,455 163,777

Deposit insurance premium 207,991 179,017

Contribution to miscellaneous funds 298,685 285,720

Export bond insurance fees 95 5

Loss on disposition of other assets 2,675 4,526

Loss on valuation of other assets 4,614 8,530

Donations and contributions 38,041 62,896

Loss on restoration 301 244

Loss on disposal of loans 196,187 172,263

Loss on investment in associates - 6

Other expenses 58,611 65,131

\ 8,973,490 \ 8,101,934

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40. INCOME TAX EXPENSE

(1) Details of income tax expense are as follows (Unit: Korean Won in millions):



Current income tax payable \ 489,483 \ 260,792

Adjustment recognized in the period for current tax of prior periods (4,796) (38,041)

Changes in deferred income taxes due to temporary differences 18,055 (24,293)

Changes in deferred income taxes directly in equity 87,058 76,291

Income tax expense \ 589,800 \ 274,749

(2) Income tax expense can be reconciled to net income is follows (Unit: Korean Won in millions):



Net income before income tax \ 2,659,171 \ 1,536,853

Tax calculated at statutory tax rate of 24.2% 643,493 371,892

Adjustments: - -

Effect on non-taxable income (46,060) (79,149)

Effect on non-deductible expense 53,980 61,427

Deferred tax effect from changes in tax rate (11,618) (8,998)

Consolidated tax return (45,199) (32,382)

Adjustment recognized in the period for current tax of prior periods (4,796) (38,041)

Income tax expense \ 589,800 \ 274,749

Effective tax rate 22.2% 17.9%

(3) Changes in cumulative temporary differences for the years ended December 31, 2011 and 2010 are as follows (Unit: Korean Won in millions):


Beginning balance Deduction Addition Ending balance

Temporary differences to be charged to income tax expense:

Loss (gain) on valuation of securities \ 647,632 \ 651,462 \ 884,836 \ 881,006

Loss (gain) on valuation of investments in associates 156,832 - (52,477) 104,355

Gain (loss) on valuation of derivatives (466,258) (466,615) (641,807) (641,450)

Accrued income (206,975) (205,174) (265,594) (267,395)

Depreciation of premises and equipment (33,082) (33,307) (17,752) (17,527)

Allowance for loan loss 344,333 383,663 (31,593) (70,923)

Write-off of loans 258,253 220,660 - 37,593



WOORI BANK



Deferred loan origination fees and costs (125,558) (125,558) (155,002) (155,002)

Accrued expenses 109,164 105,388 161,829 165,605

Retirement benefit obligation 100,353 3,640 80,814 177,527

Plan assets (104,523) (3,640) (76,644) (177,527)

Provisions for guarantees 202,719 202,719 250,472 250,472

Other provision 195,424 195,340 137,257 137,341

Loss (gain) on valuation of debentures 159,721 159,721 312,819 312,819

Deposits due to customers 6,249 6,249 119 119

Provision for advanced depreciation (86,274) - - (86,274)

Hybrid securities (2,389,873) (500,000) - (1,889,873)

Others (427,368) (611,591) (578,302) (394,079)

Sub-total (1,659,231) (17,043) 8,975 (1,633,213)

Temporary differences recognized directly in equity :

Gain on valuation of available-for-sale securities (1,171,131) (1,189,356) (744,263) (726,038)

Change in interests of equity method securities (26,739) (26,739) 1,946 1,946

Others 695 695 (4,315) (4,315)

Sub-total (1,197,175) (1,215,400) (746,632) (728,407)

Temporary differences sub-total (2,856,406) (1,232,443) (737,657) (2,361,620)

Realizable temporary differences (2,389,873) (500,000) 5,168 (1,884,705)

Unrealizable temporary differences (466,533) (732,443) (742,825) (476,915)

Tax effects for temporary differences (99,142) (161,665) (179,720) (117,197)

Net deferred tax liabilities \ (99,142) \ (117,197)



Temporary differences to be charged to income tax expense:

Loss (gain) on valuation of securities \ 687,700 \ 687,700 \ 647,632 \ 647,632

Loss (gain) on valuation of investments in associates 165,579 165,579 156,832 156,832

Gain (loss) on valuation of derivatives (41,896) (41,896) (466,258) (466,258)

Accrued income (58,772) (58,772) (206,975) (206,975)

Depreciation of premises and equipment (90,730) (90,905) (33,257) (33,082)

Allowance for loan loss (609,864) (469,009) 485,188 344,333

Write-off of loans 278,872 20,619 - 258,253

Deferred loan origination fees and costs (113,002) (113,002) (125,558) (125,558)

Accrued expenses (94,197) (94,197) 109,164 109,164

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Retirement benefit obligation 97,155 96,250 99,448 100,353

Plan assets (96,402) (95,496) (103,617) (104,523)

Provisions for guarantees 334,500 334,500 202,719 202,719

Other provision 227,619 227,552 195,357 195,424

Loss (gain) on valuation of debentures (3,228) (3,228) 159,721 159,721

Deposits due to customers 761 761 6,249 6,249

Provision for advanced depreciation (86,274) - - (86,274)

Hybrid securities (2,504,972) (2,504,972) (2,389,873) (2,389,873)

Others 321,822 326,128 (423,062) (427,368)

Sub-total (1,585,329) (1,612,388) (1,686,290) (1,659,231)

Temporary differences recognized directly in equity:

Gain on valuation of available-for-sale securities (1,488,686) (1,488,686) (1,171,131) (1,171,131)

Change in interests of equity method securities (55,272) (55,272) (26,739) (26,739)

Others - - 695 695

Sub-total (1,543,958) (1,543,958) (1,197,175) (1,197,175)

Temporary differences sub-total (3,129,287) (3,156,346) (2,883,465) (2,856,406)

Realizable temporary differences (2,504,972) (2,504,972) (2,389,873) (2,389,873)

Unrealizable temporary differences (624,315) (651,374) (493,592) (466,533)

Tax effects for temporary differences (123,435) (132,883) (108,590) (99,142)

Net deferred tax liabilities \ (123,435) \ (99,142)

(4) Details of temporary differences that are not recognized as deferred tax liabilities are as follows

(Unit: Korean Won in millions):


Investments in associates \ 5,168 \ - \ -

Hybrid securities (1,889,873) (2,389,873) (2,504,972)

Total \ (1,884,705) \ (2,389,873) \ (2,504,972)

(5) Details of deferred tax relating to items that are recognized directly in equity are as follows (Unit: Korean Won in millions):


Loss (gain) on valuation of AFS securities \ (172,677) \ (257,079) \ (317,150)

Gain (loss) on foreign exchange translation of AFS financial assets

(1,011) (1,010) (9,655)

Others (2,633) (5,290) (12,865)

Total \ (176,321) \ (263,379) \ (339,670)



WOORI BANK

41. EARNINGS PER SHARE (“EPS”)

(1) Basic EPS is calculated by dividing net income by weighted average number of common shares outstanding (Unit: Korean Won in millions, except for per share amounts)



Net income attributable to common shares:

Net income attributable to the controlling equity \ 2,068,544 \ 1,261,283

Dividend on preferred stock (56,000) (56,000)

Dividend on hybrid securities (142,548) (155,661)

\ 1,869,996 \ 1,049,622

Weighted average number of common shares outstanding

696 million shares 696 million shares

Basic EPS \ 2,687 \ 1,508

(2) Diluted EPS is calculated by reflecting the dilution effect to net income (Unit: Korean Won in millions, except for per share amounts)



Diluted net income:

Net income attributable on common shares \ 1,869,996 \ 1,049,622

Dilution effect of convertible preferred stock 56,000 56,000

\ 1,925,996 \ 1,105,622

Weighted average number of share for diluted earnings per share:

Weighted average number of common shares outstanding 696 million shares 696 million shares

Convertible preferred stock 70 million shares 70 million shares

766 million shares 766 million shares

Diluted EPS \ 2,514 \ 1,443

Diluted EPS is calculated by adjusting the assumption that all dilutive potential common shares are converted to common shares, for weighted average

number of shares calculation. The dilutive potential common shares are convertible preferred stock, and to calculate diluted EPS, it is assumed that

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42. CONTINGENT LIABILITIES AND COMMITMENTS

(1) Details of guarantee which the Group has provided for others are as follows (Unit: Korean Won in millions):


Confirmed guarantee:

Guarantee for debenture issuances \ 135 \ 41,290 \ 46,024

Guarantee for loans 220,966 128,433 84,137

Acceptances 807,772 743,445 817,770

Guarantee in acceptances of imported goods 128,152 124,973 113,564

Other confirmed guarantees 9,845,755 8,532,312 8,953,173

Total 11,002,780 9,570,453 10,014,668

Unconfirmed guarantee:

Local letter of credit 934,060 880,013 728,597

Letter of credit 4,490,294 5,293,892 5,431,537

Other unconfirmed guarantee 3,133,110 3,678,567 4,709,636

Total \ 8,557,464 \ 9,852,472 \ 10,869,770

Commercial paper purchase commitment and others

\ 2,956,081 \ 4,028,455 \ 3,626,291

(2) Details of loan commitments and other commitments which the Group provided for others are as follows (Unit: Korean Won in millions):

December 31, 2011

December 31, 2010

January 1, 2010

Loan commitments \ 84,708,979 \ 79,895,333 \ 74,519,965

Other commitments 8,695,936 9,929,244 8,776,416

(3) Details of guarantees and the related provisions for guarantees are as follows (Unit: Korean Won in millions):


Confirmed guarantees \ 11,002,780 \ 9,570,453 \ 10,014,668

Unconfirmed guarantees 8,557,464 9,852,472 10,869,770

Commercial paper purchase commitments and others 2,956,081 4,028,455 3,626,291

Total 22,516,325 23,451,380 24,510,729

Provisions for guarantees \ 437,557 \ 284,599 \ 278,191

Ratio of provisions to total guarantees 1.94% 1.21% 1.13%



WOORI BANK

(4) Litigation case

The Group had filed lawsuits as follows (Unit: Korean Won in millions):

December 31, 2011

As plaintiff As defendant

Number of cases 779 case 179 case

Amount of litigation \ 1,020,035 \ 333,177

Provisions for litigations \ 12,679

December 31, 2010


Number of cases 4,034 case 146 case

Amount of litigation \ 788,273 \ 160,427


January 1, 2010


Number of cases 4,860 case 210 case

Amount of litigation \ 781,854 \ 178,618


The litigations from the electronic reminder (payment orders for unpaid credit card receivables to individuals) are not included on the number of cases

as of December 31, 2011, December 31, 2010 and January 1, 2010, respectively, and there are no significant effects on the financial statements as of

December 31, 2011, December 31, 2010 and January 1, 2010.

43. RELATED PARTY TRANSACTIONS

Related parties of Group and assets and liabilities recognized and major transactions with related parties during the current and prior period are as

follows:

(1) The related parties of the Group as of December 31, 2011 are as follows:

Related parties

Ultimate controlling party (Government related entity)

Korea Deposit Insurance Corporation (“KDIC”)

Parent Woori Finance Holdings Co., Ltd. (“WFH”)

AssociatesKorea Credit Bureau Co., Ltd., Korea Finance Security Co., Ltd., Woori Service Networks Co., Ltd., Kumho Tires Co., Ltd., Woori Private Equity Fund, Woori Blackstone Korea Opportunity Private Equity Fund 1, United PF 1st Corporate financial stability, LIG E&C Co., Ltd., Hyunjin Co., Ltd.

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Other

Kyongnam Bank, Kyongnam Bank Preservation Trust of principal, Kwangju Bank, Kwangju Bank Preservation Trust of principal, Kumho Investment Bank, Bonghwang Semiconductor Yuhan Gongsa, Sempio Food Co., Ltd., Seoul Lakeside Co., Ltd., WFG Savings Bank, Woori FIS Co., Ltd., Woori Renaissance Holdings Co., Ltd., Woori Futures, Woori Aviva Life Insurance Co., Ltd., Woori AMC, Woori F&I Co., Ltd., Woori EL Co., Ltd., Woori Asset Management Co., Ltd., Woori Investment & Securities Co., Ltd., Woori Financial Co., Ltd., Woori Private Equity, UP Chemical Co., Ltd., Phoenix Digital Tech Co., Ltd., TY Second Asset Securitization Specialty and 54 SPCs, Woori Investment Asia PTE and 35 Beneficiary Certificates

(2) Assets and liabilities from transactions with related parties are as follows (Unit: Korean Won in millions):

Related party AccountsDecember 31,

2011December 31,

2010January1,

2010


KDIC Loans \ 1,000,000 \ - \ -

Provision for credit loss 457 - -

Other assets 762,109 647,300 222,283

Deposits 136,916 546,634 230,935

Parent

WFH

Loans 483 369 246

Provision for credit loss - (1) (2)

Other assets 2 - -

Deposits 38,745 68,954 24,570

Other liabilities 238,721 32,542 31,580

Associates

Kumho Tires Co., Ltd.

Loans 422,840 403,829 -

Provision for credit loss (51,468) (48,287) -

Other assets 381 - -

Other liabilities 57 - -

Deposits 36,131 - -

BC Card Co., Ltd.

Loans - 33,964 26,514

Provision for credit loss - (122) (4,607)

Deposits - 18,650 10,193

Other liabilities - 50 43


Loans 3 2 3

Provision for credit loss - - (1)

Deposits 3,000 3,800 -

Other liabilities 53 102 -

Woori Private Equity Fund

Other assets - 20 21

Deposits 12,377 2,168 789

Other liabilities - 1 -



WOORI BANK


2011December 31,

2010January1,

2010


Loans 45 47 40

Provision for credit loss (1) (9) (13)

Deposits 2,638 1,090 -



Loans 20 19 42


Deposits 1,457 1,080 820

Other liabilities 201 179 13

United PF 1st corporate financial stability

Deposits 2 - -

LIG E&C Co., Ltd.

Loans 742 - -

Provision for credit loss (70) - -

Deposits 2,408 - -


Hyunjin Co., Ltd.

Other assets 313 - -

Provision for credit loss (313) - -

Deposits 17,477 - -


Others

Woori Investment & Securities Co., Ltd. and subsidiaries

Due from Banks \ - \ - \ 11,842

Loans 1,822 - 1,171

Provision for credit loss (342) - (29)

Other assets 8,141 2,867 598

Deposits 794,100 402,705 352,832

Borrowings 13,454 9,784 28,070


Kyongnam Bank and subsidiaries

Due from banks - 1,579 -

Other assets 42,722 36,997 43,223

Deposits 5,739 3,778 12,047

Borrowings 1,409 3,589 8,304


Kwangju Bank

Loans 229 - -


Other assets 27,908 2,292 3,093

Deposits 8,605 11,961 5,233

Borrowings 28,418 26,880 26,386


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2011December 31,

2010January1,

2010

Woori F&I Co., Ltd. and subsidiaries

Loans 69 - 1,354


Other assets 96 5 797

Deposits 89,301 73,307 32,207


Woori Private Equity and subsidiaries

Loans 20,054 20,133 20,155


Other assets 10,457 4,442 5,118

Deposits 19,301 35,180 39,922

Borrowings 1,000 6,624 6,791


Other subsidiaries of WFH


Loans 50,510 639 349


Other assets 84 1,198 354

Deposits 30,202 29,694 23,544


Associates of Woori F&I Co., Ltd.

Deposits 27,508 41,476 -

Other liabilities 14 14 -

Associates of Woori Pri-vate Equity

Loans 15,777 7,358 4,857

Provision for credit loss (3,716) - (2,426)

Deposits 6,707 1,834 56,588

Other liabilities 22 - 966

Associates of Woori Investment & Securities Co., Ltd.

Loans 11,300 74 96


Deposits 9,292 4,392 3,996


Woori Aviva Life Insurance Co., Ltd.

Loans 371 348 243


Deposits 2,642 7,638 480




WOORI BANK

(3) Gain or loss from transactions with related parties are as follows (Unit: Korean Won in millions):

Related party AccountsFor the year ended December 31, 2011



KDIC

Interest income \ 63,186 \ 14,639

Interest expense 7,218 9,533

Bad debt expense 457 -

Parent

WFH

Other income 2,066 740


Fees expense 52,751 29,461

Bad debt expenses - 1

Other expense 100 -

AssociatesKumho Tires Co., Ltd.

Interest income 1,036 -

Fees income 1 -

Interest expense 58 -

Fees expense 4 -

Bad debt expenses(Reversal of provision for credit loss)

3,180 (27,747)


Dividends 55 55

Interest expense 60 57


(9) 2

Korea Credit Bureau Co., Ltd. Interest expense 65 135


Dividends 12 2

Other income 14 13


Bad debt expenses (3) (4)

Woori Private Equity Fund and subsidiaries

Dividends - 434

Fees income - 41


BC Card Co., Ltd.

Dividends - 32,267

Fees income - 1

Interest expense - 483

Fees expenses - 66

Reversal of provision for credit loss - (4,727)

United PF 1st corporate financial stability

Other expense (80,992) -

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LIG E&C Co., Ltd.

Interest income 55 -

Fees income 2 -

Reversal of provision for credit loss (360) -


Fees expenses 6 -



Associates

Hyunjin Co., Ltd.

Interest income \ 374 \ -

Fees income 4 -

Reversal of provision for credit loss (388) -

Other income 4 -


Others

Other subsidiaries of WFH

Interest income 648 -

Fees income 1,815 1,485

Other income 8,628 6,663


Fees expense 134 168

Bad debt expenses 227 (40)

Other expense 214,536 214,940

Kyongnam Bank and subsidiar-ies




Woori Investment & Securities Co., Ltd. and subsidiaries

Interest income - 1

Fees income 17 -



Fees expense 414 147

Bad debt expenses 336 5


Woori Private Equity and sub-sidiaries

Interest income 1,299 326


Interest expense 707 1,134

Fees expense 11 -





WOORI BANK



Kwangju Bank

Interest income 3 -

Other income 1,972 48



Woori F&I Co., Ltd. and sub-sidiaries

Fees income 53 55

Other income 193 106


Bad debt expenses 1 -

Other expense 315 234

Associates of Woori F&I Co., Ltd.


Associates of Woori Private Equity


Bad debt expenses 3,716 5,550



Associates of Woori Investment & Securities Co., Ltd.


17 (1)


Woori Aviva Life Insurance Co., Ltd.

Fees income 14,893 -

Other income 135 13,088


Fees expense 25 26


(4) Guarantees provided to the related parties are as follows (Unit: Korean Won in millions):

WarrantyDecember 31,

2011December 31,

2010January1,

2010

Kumho Tires Co., Ltd. Import credit in foreign currencies \ 18,091 \ 15,889 \ 2,054

TY Second Asset Securitization Specialty

Confirmed guarantees(Guarantee for debenture issuances)

65 65 65

Loan commitment in local currency 119,000 119,000 119,000

Sempio Food Co., Ltd. Import credit in foreign currencies 575 1,802 744

BK LCD Co., Ltd.Financial guarantee in foreign currencies - 1,708 584

Import credit in foreign currencies - 305 579

Hyunjin Co., Ltd. Confirmed guarantees 287 - -

For the guarantee provided to the related parties, the Group recognized provisions for guarantees amounting to \514 million, \1,214 million and

\1,242 million, respectively, as of December 31, 2011 and 2010 and January 1, 2010.

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(5) Details of compensation to key management are as follows (Unit: Korean Won in millions):



Salaries \ 1,330 \ 1,131

Severance and retirement benefits 160 127

The key management represents non-executive directors and executive director. As of December 31, 2011 and 2010 and January 1, 2010, loans from

transactions with key management are \700 million, \720 million and \770 million, respectively. And allowance for these loans and bad debt

expense are \1 million.

44. OPERATING INCOME (EXPENSE)

The items reclassified from non-operating income or expense under K-GAAP to operating incomes or expenses under K-IFRS are as follows. (Unit:

Korean Won in millions)



Operating income in K-IFRS \ 2,683,084 \ 1,497,629

Adjustments:

Gain (loss) on disposal and impairment of premises and equipment and intangible assets

(4,085) 11,733

Gain (loss) on transaction of investment in associates (26,231) 6

Debt collection fee 8,612 2,231

Donations 38,041 62,896

Other (miscellaneous profit and loss) (95,522) (13,173)

Sub-total (79,185) 63,693

Operating income in previous GAAP \ 2,603,899 \ 1,561,322

The above information reflects only the differences in the classifications of income and expense between K-IFRS and K-GAAP. And, it was measured by

current standards, which is K-IFRS. As such, the operating income for the year ended December 31, 2010, is not same as reported operating income

under K-GAAP.

45. CREDIT CARD DIVISION SPLIT-OFF PLAN

As of September 16, 2011, the board of directors of WFH and the Group decide to split off the Bank’s credit card division and set up a new credit card

company to be a subsidiary of WFH. The Bank will disclose its credit card division as a discontinued operation when the Financial Supervisory Committee

approves the split off and the establishment of the new credit card company.



WOORI BANK

46. TRANSITION EFFECTS OF K-IFRS

In connection with adopting K-IFRS, the effects on the Group’s financial position, result of its operation due to the adoption of K-IFRS are as follows:

(1) Significant differences on accounting policies between K-IFRS and K-GAAP

Classification K-IFRS K-GAAP

First time adoption of K-IFRS

Fair value as deemed cost and revaluation cost

Fair value of lands and buildings as of the transition date is to be regarded as net book value. Not applicable

Accumulated foreign currency translation

Accumulated foreign currency translation adjustments as of the transition date are reset to ‘zero’. Not applicable

Fair value evaluation of financial assets and li-abilities at the acquisition date

Prospective approach is applied to the accounts which are newly categorized into financial assets and liabilities carried at fair value, as of the transition date.

Not applicable

Derecognition of finan-cial assets and liabilities

K-IFRS 1309 ‘Financial instruments: Recognition and derecognition’ is applied prospectively as of the transition date.

Not applicable

Designation of AFS secu-rities or financial assets/liabilities at FVTPL

Designation of AFS financial assets or financial assets/liabilities at FVTPL is principally allowed at the acquisition date, with an exception of one time designation for existing financial assets/liabilities at the transition date.

Not applicable

Stock-based compensa-tion

Retroactive application of stock-based compensation as per K-IFRS 1102 ‘Stock-based payment’ is not allowed. Not applicable

Decommissioning and restoration liabilities included in the cost of premises and equipment

Changes in a decommissioning and restoration liability at the transition date are added to or deducted from the cost of premises and equipment, by discounting the liability using the discount rate at the date of acquisition.

Not applicable

Lease

Lease contracts existing as of the transition date are subject to K-IFRS 1017 ‘Lease’, which is not applied retrospectively.

Not applicable

Investment in subsidiar-ies, jointly controlled corporation and related-party entities

When preparing separate financial statements in accordance with K-IFRS 1027 ‘Consolidated and separate financial statements’ , net book value of the investments in subsidiaries, jointly controlled entities and associates is regarded as the cost of the equity securities when the cost method is applied.

Not applicable

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Change of consolidation Scope

Exceeding 50% of the voting power, having decision making capability and holding benefits and risks constitute control in determining the consolidation scope.

Owning 30% of shares and being the largest shareholder constitute control in determining the consolidation scope, except for special purpose entities (SPEs) that meet certain criteria.

Derecognition of financial assets

Criteria such as risks, awards, control and continuing involvement are to be sequentially considered in determining derecognition timing and recognition scope.

The disposal of financial assets is contingent on the risks and rewards of ownership of the financial assets, and whether it has retained control of the financial assets. However, certain transactions such as asset securitization per the Act on Asset-Backed Securitization are considered sales transactions.

Classification of financial instruments

Financial assets are classified into financial assets at FVTPL, AFS financial assets, HTM securities and loan and receivables and financial liabilities consist of financial liabilities at FVTPL and other liabilities

Assets are divided into cash and due from banks, investment securities, trade receivables, derivative assets and securities consist of trading, AFS and HTM securities. Liabilities are classified into deposits, borrowings, debenture and others.

Measurement of financial instruments

Financial assets/liabilities at FVTPL and AFS financial assets are required to be recorded at fair value with credit risks reflected. HTM financial assets and loan and receivables are to be measured at amortized cost with the effective interest rate method applied.

Certain financial instruments such as trading securities, AFS securities and derivatives, are recorded at fair value, and the reflection of credit risk is not explicitly mentioned.

Provision for credit lossProvision for credit loss should be recorded when objective evidence of impairment exists as a result of one or more events that occurred after initial recognition.

Provision for credit loss to cover estimated losses on loans, based on rational and unbiased criteria, is recorded.(It is higher of the amount applying the percentage of loan loss provision established by the Financial Supervisory Commission or the amount based on loan loss experience ratio.)

Classification of investment propertyProperty (land or building) to earn rentals is treated as an investment property.

Property (land or building) to earn rentals is treated as a premises and equipment.

Measurement of premises and equip-ment and investment property

It allows an entity to choose whether it adopts a revaluation method or a cost method by asset classifications and a cost method is adopted.

In accordance with asset classifications, the asset cost method and asset revaluation reserves are selected as alternative. In addition, cost method is a selective option.

MembershipClassified into intangible asset with indefinite useful lives. Classified into long-term deposit in other

non-current assets.



WOORI BANK


Changes in depreciation methods.

Residual value, useful lives and depreciation method of property, plant and equipment are to be consistently reviewed at least every fiscal year end and significant changes, if any, should be treated as changes in accounting estimates.

Once depreciation method is determined, it should be consistently applied to all of newly acquired and existing assets.

Measurement of retirement benefitsBoth the defined benefit and defined contribution plans are provided and the amounts of defined benefit obligation are computed based on actuarial assumptions.

Provisions for retirement benefits accrued equal to the amounts to be paid at the end of period, assuming that the all entitled employees with a service year more than a year would retire at once. Retirement benefit expenses incur at the point when the payment obligation is fixed.

Financial guarantee

Accounted for as a financial guarantee asset or liability if it is a contract that brings an obligation to an issuer to compensate a loss incurred to a holder, in accordance with the contract provisions, when debtor defaults at a payment date. Recognize financial guarantee assets or liabilities at fair value and subsequently amortize using the effective interest method. Also, financial guarantee liabilities are recorded at higher of provision for guarantee loss or amortized cost.

Not applicable

Liability/equity classification

Issuer classifies its financial instruments or components of financial instruments as either financial liabilities or equity instruments at the initial recognition, considering the substance of the contractual arrangement and definition of financial assets and equity instruments.

Classification according to relevant legal framework such as business law

Classification of capitalClassification in capital is pursuant to the substance of the contractual arrangement over its legal form.

Capital includes the legal amount paid by shareholders (paid-in capital).


Closing exchange rates at year end for translation of assets or liabilities denominated in foreign currencies, and closing exchange rates at acquisition date for stockholder’s equity should be applied. For other comprehensive income items, average exchange rates for the periods concerned should be used.

When applying the accounting standards for the banking industry, closing rates are used in translating the statement of financial position and the statement of income.

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(2) Changes in consolidation scope

Changes in consolidation scope due to adoption of K-IFRS are as follows:

Subsidiaries under K-GAAPas of December 31, 2011

Subsidiaries under K-IFRSas of December 31, 2011 Scope difference

Woori Credit Information Co., Ltd. Woori Credit Information Co., Ltd. -

Woori America Bank Woori America Bank -

PT. Bank Woori Indonesia PT. Bank Woori Indonesia -

Woori Global Market Asia Limited Woori Global Market Asia Limited -

Woori Bank (China) Limited Woori Bank (China) Limited -

Zao Woori Bank (Russia) Zao Woori Bank (Russia) -

- Woori Fund Service Co., Ltd. New subsidiaries

Korea BTL Infrastructure FundSubject to consolidation as substantially controlled by the Group under K-IFRS, however, it was excluded from consolidation per the Act Concerning External Auditor of Corporation under K-GAAP.



-

Woori Bank Preservation Trust of principal -

Not subject to consolidation as no substantive control over principal recoverable trust is held by the Group under K-IFRS, but subject to consolidation per the Administrative Instructions of Banking Supervision under K-GAAP.

-

Kumho Trust 1st Co., Ltd.Woori IB Global Bond Co., Ltd.Consus 8th LLC.Asiana Saigon Co., Ltd.An-Dong Raja 1st Co., Ltd.KAMCO Value Recreation 1st Securitization Specialty Co., Ltd.IB Global 1st Real DW 2nd Co., Ltd.Hermes STX Co., Ltd.BWL 1st Co., Ltd.Uri Pungsan Inc.Pyeongtaek Ocean Sand Inc.

Subject to consolidation as substantially controlled by the Group under K-IFRS, however, it was excluded from consolidation under K-GAAP due to SPE’s limited scope of operations.



WOORI BANK

Subsidiaries under K-GAAPas of December 31, 2011

Subsidiaries under K-IFRSas of December 31, 2011 Difference

-

Haeoreum Short-term Bond 15th (Unsold) G5 Pro Short-term 13th

(Unsold) G6 First Class Mid-term E-20(Unsold) G15 First Class Mid-term C-1D First Class Mid-term C-151Woori Partner Plus Private Equity Securities 4th

Golden Bridge Sidus FNH videoGolden Bridge NHN Online Private Equity InvestmentWoori CS Ocean Bridge 7th Woori Milestone Private Real Estate Fund 1st Woori Milestone China Real Estate Fund 1st

Consus Sakhalin Real Estate Investment Trust 1st Woori Partner Plus Private Trust 7th

Uri WB Private Investment Trust 3rd (Bond)KDB Private Equity Securities Investment Trust WB 2nd (Bond)Samsung Plus Private Investment Trust 13th

Hanwha Smart Private Trust 43rd (Bond)Eugene Pride Private Trust 21st (Bond)Merits Prime Private Trust 42nd (Bond)Woori Partner Plus Private Equity Securities 8th


Woori Frontier Alpha Private Equity 8th

Midas Private Investment Trust W-3rd

Consus Private Securities Investment Trust 54th Allianz Blue Ocean Private Trust 5th

Kyobo Axa Long Short Private Trust 2nd

Hanhwa Quant Long Short Private Equity3rd

Hyundai Advantage Private Trust 14th

Mirae Asset Maps Blue Chips Private Trust 2nd

Hanwha Smart Private Trust 50th

Subject to consolidation as substan-tially controlled by the Group under K-IFRS, however, it was excluded from consolidation under K-GAAP due to SPE’s limited scope of opera-tions.

(3) The effects on the Group’s financial position and results of operation

The effects on the Group’s financial position and results of operation being listed below are set out based on the consolidated financial statements,

which may change with subsequent adoption of amendments to the standards and further analysis. Conversion effects to K-IFRS consist of those from

changes in the scope of consolidation, reclassifications and net asset changes due to GAAP differences.

1) Summary of the effects on the statement of financial position at January 1, 2010 (Date of transition, Unit: Korean Won in

millions):

K-GAAP Transition effects K-IFRS Ref.

Cash and due from banks \ 16,423,075 \ (11,382,929) \ 5,040,146 A

Financial assets at FVTPL 14,041,377 (1,706,532) 12,334,845 B

AFS financial assets 9,758,128 6,944,326 16,702,454 C

HTM financial assets 12,524,770 2,259 12,527,029 D

Loans and receivables 171,198,896 5,650,438 176,849,334 E

Consolidation and equity method investment assets

526,938 (278,106) 248,832 F

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Investment properties - 391,963 391,963 G

Premises and equipment 1,912,338 446,552 2,358,890 H

Intangible assets 58,876 9,267 68,143 I

Other assets 189,032 62,510 251,542 J

Current tax assets 12,364 4,013 16,377

Deferred tax assets 142,807 (120,138) 22,669 K

Derivatives assets - 107,508 107,508 L

Assets held for sale - 7,609 7,609 M

Total assets \ 226,788,601 \ 138,740 \ 226,927,341

Financial liabilities at FVTPL \ 4,090,238 \ 1,674,308 \ 5,764,546 N

Deposits 151,830,533 (1,705,983) 150,124,550 O

Borrowings 20,044,523 707,812 20,752,335 P

Debentures 27,422,952 (3,946,849) 23,476,103 Q

Other provision 708,604 (157,843) 550,761 R

Current tax liabilities 6,928 (1,213) 5,715

Other financial liabilities 8,437,189 (8,108) 8,429,081 S

Other liabilities 612,668 80,514 693,182 T

Deferred tax liabilities - 146,104 146,104 U

Derivatives liabilities - 64,597 64,597 V

Total liabilities \ 213,153,635 \ (3,146,661) \ 210,006,974

Capital stock \ 3,829,783 \ - \ 3,829,783 W

Hybrid securities - 2,181,806 2,181,806 X

Capital surplus 812,283 (290) 811,993 Y

Other capital 1,135,843 56,420 1,192,263 X

Retained earnings 7,850,817 1,047,453 8,898,270 Z

Non-controlling interests 6,240 12 6,252

Total equity \ 13,634,966 \ 3,285,401 \ 16,920,367

2) Summary of the effects on the financial position at December 31, 2010 and the results of operation for the year ended

December 31, 2010 (Unit: Korean Won in millions):

< Financial position >


Cash and due from banks \ 16,096,951 \ (12,211,267) \ 3,885,684 A

Financial assets at FVTPL 12,886,643 (1,782,593) 11,104,050 B

AFS financial assets 12,710,459 3,899,631 16,610,090 C



WOORI BANK


HTM financial assets 15,918,785 1,532 15,920,317 D

Loans and receivables 167,892,488 9,738,387 177,630,875 E

Consolidation and equity method investment assets

539,637 (233,408) 306,229 F

Investment properties - 366,874 366,874 G

Premises and equipment 1,863,112 471,274 2,334,386 H

Intangible assets 27,000 12,366 39,366 I

Other assets 140,897 66,570 207,467 J

Current tax assets - 2,833 2,833

Deferred tax assets 130,479 (122,196) 8,283 K

Derivatives assets - 133,224 133,224 L

Assets held for sale - 5,185 5,185 M

Total assets \ 228,206,451 \ 348,412 \ 228,554,863

Financial liabilities at FVTPL \ 3,235,439 \ 1,494,136 \ 4,729,575 N

Deposits 158,969,618 (1,655,309) 157,314,309 O

Borrowings 18,084,387 898,584 18,982,971 P

Debentures 23,989,424 (3,796,997) 20,192,427 Q

Other provision 763,990 (244,161) 519,829 R

Current tax liabilities 110,517 (1,234) 109,283

Other financial liabilities 8,658,335 141,602 8,799,937 S

Other liabilities 203,681 74,076 277,757 T

Deferred tax liabilities - 107,425 107,425 U

Derivatives liabilities - 34,419 34,419 V

Total liabilities \ 214,015,391 \ (2,947,459) \ 211,067,932

Capital stock \ 3,829,783 \ - \ 3,829,783 W

Hybrid securities - 2,181,806 2,181,806 X

Capital surplus 812,337 (916) 811,421 Y

Other capital 866,872 71,388 938,260 X

Retained earnings 8,674,957 1,043,620 9,718,577 Z

Non-controlling interests 7,111 (27) 7,084

Total equity \ 14,191,060 \ 3,295,871 \ 17,486,931

<Results of operation >

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Interest income \ 11,105,685 \ (124,637) \ 10,981,048 A

Interest expense (6,024,477) 70,191 (5,954,286) B

Net interest income 5,081,208 (54,446) 5,026,762

Net fees and commissions income 508,937 (15,144) 493,793 C

Dividend on securities 50,187 68,908 119,095 D

Gain (loss) on financial assets at FVTPL (30,006) 45,219 15,213E

Gain (loss) on AFS financial assets 777,562 200,984 978,546F

Impairment losses for loans, other receivables, guarantees and unused commitments

(2,393,062) (103,021) (2,496,083) G

Other operating income (expense) (2,615,887) (23,810) (2,639,697)H

Operating income 1,378,939 118,690 1,497,629

Gain on investment in associates 37,850 1,374 39,224I

Income on continuing operation before in-come tax expense

1,416,789 120,064 1,536,853

Income tax expense on continuing operation 308,150 (33,401) 274,749J

Income on continuing operation 1,108,639 153,465 1,262,104

Other comprehensive income (loss) (268,971) 15,097 (253,874)K

Comprehensive income \ 839,668 \ 168,562 \ 1,008,230

3) Details of financial position reconciliation and results of operations reconciliation

Transition effects on financial position

A. Cash and due from banks

Certain money market funds (MMF), certificate of deposits (CD) and bank deposits included in cash and cash equivalents under K-GAAP are reclassified

into financial asset at FVTPL, AFS financial assets or loans and receivables under K-IFRS.

B. Financial assets at FVTPL

Cash and cash equivalents or AFS securities under K-GAAP are designated as or transferred to financial assets at FVTPL under K-IFRS. Fair value changes

due to credit risk adjustment and others result in a change in net assets.

C. AFS financial assets

Certain MMF and CD included in cash and cash equivalents under K-GAAP are transferred to AFS financial assets under K-IFRS. Also, some of



WOORI BANK

AFS securities under K-GAAP are designated as or reclassified to financial assets at FVTPL. In addition, different accounting methods on reversal of

impairment loss for AFS securities result in a decrease in net assets.

D. HTM financial assets

Application of the effective interest method to HTM securities measured at amortized cost results in a decrease in net assets.

E. Loans and receivables

Bank deposits included in cash and cash equivalents under K-GAAP are transferred to loans and receivables under K-IFRS and prepaid rental deposits

under K-GAAP are reclassified into other assets under K-IFRS. Also, changes in net assets are attributable to the different accounting treatments in

deferred loan fees and amortization method using the effective interest rate, combined with different set-out scope of provision for receivables and its

calculation methodology.

F. Investment in associates

Some securities accounted for under the equity method under K-GAAP are reclassified as AFS securities under K-IFRS. Accordingly, adjustments

regarding equity in earnings have changed the net asset amount.

G. Investment properties

Non-operating fixed assets included in property, plant and equipment under K-GAAP segregated and transferred to investment properties.

H. Premises and equipment

Non-operating fixed assets and assets to be disposed that have been recorded in other assets under K-GAAP are reclassified into investment properties

and assets held for sale, respectively, under K-IFRS. Also, acquisition cost adjustment due to revaluation of fixed assets and establishment of provision

for asset retirement result in change in net asset value.

I. Intangible assets

Among the deposits recognized under K-GAAP, membership deposit with the expected future economic benefits is reclassified as intangible asset under

K-IFRS.

J. Other assets

Prepaid rental expense in rental deposits under K-GAAP is transferred to other assets.

K. Deferred tax assets

Changes in deferral amount arising from fair value evaluation of financial asset/liability and different methodology of impairment assessment, along

with different depreciation expense and denial of provision liability have changed the amount of deferred tax asset under K-IFRS.

L. Derivatives assets

200 201 _ 2011 AN

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FINANCIAL REVIEW

Certain derivative instruments applicable to hedge accounting under K-GAAP are reclassified as a separate derivative asset (hedge) under K-IFRS and

the amount of net asset was changed by the net effects of fair value adjustments.

M. Assets held for sale

Properties to be disposed under K-GAAP are reclassified into assets held for sale under K-IFRS.

N. Financial liabilities at FVTPL

Some portion of corporate bonds are designated as and reclassified to financial liabilities at FVTPL. Fair value changes due to credit risk adjustment and

others result in a change in net assets.

O. Deposits

Changes in net assets are attributable to the application of the effective interest method in the calculation of interest expense for CD and equity-linked

securities (ELS), previously recognized as interest payable under K-GAAP, and net book value adjustments.

P. Borrowings

Changes in net assets are attributable to the application of the effective interest rate method in the calculation of interest expense for borrowings and

net book value adjustments.

Q. Debentures

Some debentures are designated as financial liabilities at FVTPL. Hybrid securities meeting the definition of capital, in substance, are reclassified as non-

controlling equity under K-IFRS. Changes in net assets are attributable to the difference in fair value measurement of the corporate bonds subject to

the hedge accounting and difference in amortization cost based on the effective interest rate method.

R. Other provision

Difference in calculation methodology of provision for unused commitment, guarantee and other liabilities results in changes in net assets.

S. Other financial liabilities

A substantial portion of unearned rental income recorded in rental deposits within other financial liabilities under K-GAAP are transferred to other

liabilities under K-IFRS. Changes in net assets are attributable to the changes in the carrying amount of accrued liabilities in relation to interest payables

on CD and ELS and the different calculation methodology for accrued vacation benefits.

T. Other liabilities

A substantial portion of unearned rental income recorded in rental deposits within other financial liabilities under K-GAAP are transferred to other

liabilities under K-IFRS. Changes in net assets are attributable to the separation of unearned revenue related to certain portions of provision for credit

card point rewards and the amount of unearned revenue reclassified to deferred loan fees.

U. Deferred tax liabilities



WOORI BANK

Changes in deferral amounts of asset and liability, derived by fair value measurement and impairment assessment, changes in depreciation expenses

and denial of provision liabilities result in an increase in deferred tax liabilities.

V. Derivatives liabilities

Certain derivative instruments applicable to hedge accounting under K-GAAP are reclassified as a separate derivative liability (hedge) under K-IFRS and

the amount of net asset was changed by the net effects of fair value adjustments.

W. Capital stock

Changes in capital were incurred due to fluctuation of exchange rate, applicable when translating capital of overseas subsidiaries.

X. Hybrid securities and other capital

The Group reclassified hybrid securities that meet the definition of capital in economic substance as a capital from liabilities. Gains of losses on fair value

measurement in relation to reclassification of AFS securities are transferred to retained earnings. In addition, net asset balance has been adjusted due

to the deferred income tax adjustment and others.

Y. Capital surplus

Certain amounts of capital surplus related to the equity method securities under K-GAAP are transferred to retained earnings using the deemed cost

method.

Z. Retained earnings

Reclassification of AFS securities and adoption of deemed cost to securities using the equity method changed the amount of retained earnings. In

addition, difference in fair value evaluation provisions, accrued interest expense and depreciation expense, along with revaluation of fixed assets and

profit/loss adjustment in association with financial guarantee contracts caused a change in retained earnings.

Transition effects on operational results

A. Interest income

The amount of interest income changes due to the difference in amortized deferred fee of loans and receivables using the effective rate method,

interest income recognized for impaired loans, and adjustments to accrued interest income for impaired loans. In addition, the change of time value

in account receivables associated with financial guarantee, transfer of interest income related to credit card points to unearned revenue, recognition

of present value discounts amounting to the substantial portion of prepaid rental expenses and its amortization cost using the effective rate method

result in changes in interest income.

B. Interest expense

Reclassification of hybrid securities from corporate bonds under K-GAAP to capital account under K-IFRS results in a transfer of interest expense to

dividend expense and a change in retained earnings. In addition, difference in amortized interest expenses with regards to financial liabilities and

exchange rate applied when translating interest expense of foreign currency denominated financial liabilities results in a change in interest expense.

202 203 _ 2011 AN

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FINANCIAL REVIEW

C. Net fees and commissions income

Fees and commissions income changes due to the adjusted deferred loan costs (fees) related to loans and receivables and the offset amount with

financial guarantee assets when fees and commissions related to financial guarantee contracts are received. Fees and commission expense changes due

to the adjusted deferred loan costs (fees) related to loans and receivables.

D. Dividend income

Certain equity method securities are reclassified into AFS securities and dividend income from these reclassified AFS securities has been recognized

accordingly.

E. Gain (loss) on financial assets at FVTPL

Different valuation amounts using fair value measurement derived by credit risk adjustments to derivative instruments result in changes in profit/loss

on financial assets

F. Gain (loss) on AFS financial assets

Profit or loss on AFS securities has been changed, responding to the account reclassification.

G. Impairment losses for loans, other receivables, guarantees and unused commitments on credit loss

Impairment losses for loans, other receivables, guarantees and unused commitments are caused by differences in the scope and calculation methodology

of provision for loans and receivables, and differences in the calculation of unused commitment and payment guarantee.

H. Other operating income (expense)

Changes in other operating income or expense are attributable to gains or losses on foreign currency transactions due to the different exchange

rates applied at the transaction date, changes in depreciation expenses due to the changed net book value of fixed assets and changes in selling and

administrative expenses contributed by changed vacation benefits and defined benefit retirement expense. Moreover, differences in rental income and

expense have occurred in regards with prepaid rental expense and unearned rental income, respectively.

I. Gain (loss) on equity method investments

The net effect of gain or loss on valuation of equity method under K-GAAP has been reversed as certain securities accounted for under the equity

method are reclassified to AFS securities under K-IFRS.

J. Income tax expense

Changes in income tax expense are attributable to the changes in deferred tax assets and liabilities.

K. Other comprehensive income (loss)

Reclassified AFS securities under K-IFRS made a change in the amount of other comprehensive income.

Organization Chart

MANAgEMENT COMMITTEE

LOAN COMMITTEE

cONSUMER

bANkiNG

bUSiNESS UNiT

cORPORATE

bANkiNG

bUSiNESS UNiT

SMALL & ME-

diUM cORPO-

RATE

bANkiNG

bUSiNESS UNiT

iNSTiTUTiONAL

bANkiNG

bUSiNESS UNiT

iNVESTMENT

bANkiNG

bUSiNESS UNiT

GLObAL

bUSiNESS UNiT

cARd

bUSiNESS UNiT

fiNANciAL

MARkET

bUSiNESS UNiT

PRiVATE

bANkiNG

diViSiON

dEPuTY PRESIdENT

BOARd OF dIRECTORS

gENERALSHAREHOLdERS MEETINg

PRESIdENT & CHIEF ExECuTIvE OFFICER

HOUSiNG

fiNANcE

diViSiON

corporate

banking centerSales center

RM /

Operation Team

Overseas

branch

Merchant

banking

Operation Team

branch

Housing finance

dept.

Private banking

Strategy dept.

consumer

banking

Strategy dept.

Affilication

Product dept.

channel

development

dept.

customer

Service center

Sales

Support

dept.

Housing

fund dept.

corporate

banking Product

& Marketing

dept.

Small & Medium

corporate banking

Product & Market-

ing dept.

investment

banking

dept.

Project finance

dept.

financial

Advisory &

Alternative invest-

ment dept.

international

banking dept.

card

Strategy

dept.

card

cooperation

business dept.

card Processing

dept.

card channel

Support dept.

Trading &

investment

Support dept.

Treasury

dept.

Trading

dept.

Merchant

banking dept.

Securities

Trading dept.

Public

fund

Sales dept

institutional

Sales Strategy

dept.

wOORi bANk

204 205 _ 2011 AN

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13 Units

7 divisions

60 departments(2 Offices, 52 Teams, 6 Centers)

HUMAN

RESOURcES

UNiT

RiSk

MANAGEMENT

UNiT

cREdiT

SUPPORT UNiT

fiNANcE &

MANAGEMENT

PLANNiNG

UNiT.

OPERATiON &

SUPPORT UNiT

cORPORATE

RESTRUcTUR-

iNG diViSiON

ExECuTIvE RISK


COMPLIANCE OFFICER

STANdINg AudIT COMMITTEE

MEMBER/dIRECTOR

UbiqUiTOUS

bANkiNG

diViSiON

iNTERNATiNAL

TRAdE bUSi-

NESS diViSiON

cHANNEL

SUPPORT

diViSiON

TRUST

bUSiNESS

diViSiON

BOARd gOvERNANCE COMMITTEE

BOARd AudIT COMMITTEE

BOARd RISK


BOARd COMPENSATION

COMMITTEE

iT Support

dept.

Trust dept.

Retirement

Pension business

dept.

custody Agent

dept.

Strategy &

control Tower

dept.

Accounting

dept.

finance &

Planning dept.

Loan Review

dept.

Human

Resources dept.

Human

Resources

development

dept.

Employee

Satisfaction

center

Risk

Management

dept.

compliance

dept.

Audit dept.

Audit &

Management

inspection dept.

credit

Management &

collection dept.

Retail credit

Analysis &

Approval dept.

SME credit

Analysis &

Approval dept.

Large corporate

credit Analysis &

Approval dept.

General Affairs

dept.

Loan Service

center

deposit Service

center

Security

control dept.

Loan Policy

dept.

corporate

Restructuring

dept.

corporate

Restoration

dept.

corporate

Recovery dept.

Smart banking

dept

Ubiquitous

banking business

dept.

international

Trade business

dept.

international

Trade Service

center

Synergy

Promotion

dept.

Products

Engineering

dept.

Public

Relations

dept.

consumer

Protection

center


Global Network

HEAd OFFICE 203 Hoehyon-dong, 1-ka, Chung-ku, Seoul 100-792, Korea Phone: +82-2-2002-3000 Swift: HVBKKRSE

OvERSEAS BRANCH New york Agency

245, Park Ave. 43rd Floor, New York, NY 10167, USA Phone: +1-212-949-1900 Fax: +1-212-490-7146 Swift: HVBKUS33

LA br.

3360, West Olympic Blvd. Suite 300, Los Angeles, CA 90019, USA Phone: +1-213-620-0747~8 Fax: +1-213-627-5438 Swift: HVBKUS6L

London br.

9th Floor, 71 Fenchurch Street, London, EC3M 4HD, UK Phone: +44-207-680-0680 Fax: +44-207-481-8044

Tokyo br.

Mitsui OSK Building 1st Fl., 2-1-1 Toranomon, Minato-ku, Tokyo 105-0001, Japan Phone: +81-3-3589-2351 Fax: +81-3-3589-2359

Hong kong br.

Suite 1401, Two Pacific Place, 88 Queensway, Hong Kong Phone: +852-2521-8016 Fax: +852-2526-7458

Singapore br.

10 Marina Boulevard #13-05 MBFC Tower 2, Singapore 018983 Singapore Phone: +65-6223-5854~6 Fax: +65-6422-2000

Shanghai br.

23F, LJZ Plaza,1600 Century Avenue, Pudong New Area, Shanghai, 200122, China Phone: +86-21-5081-9556 Fax: +86-21-5081-9557

bahrain br.

P.O. Box 1151, 4th Floor, Entrance 1, Manama Centre Building, Manama, Bahrain Phone: +973-17-223503 Fax: +973-17-224429

Hanoi br.

11th Fl., Office Tower, Daeha Business Center 360 Kim Ma St., Ba Dinh Dist. Hanoi, Vietnam Phone: +84-4-8315281 Fax: +84-4-8315271

dhaka br.

Suvastu Imam Square (1st & 4th Fl.) 65 Gulshan Avenue, Dhaka - 1212, Bangladesh Phone: +880-2-881-3270~3 Fax: +880-2-881-3274/3241

Gaeseong br.

Rm.101, Gaeseong Industrial District Manage-ment Committee Building 1st Floor, Bongdong-Ri, Gaeseong, Hwanghae-Do, North KoreaPhone: +001-8585-2300~2 Fax: +001-8585-2303

Hochiminh city br.

2 Floor, Kumho Asiana Plaza Saigon 39 Le Duan St., Dist 1, HCMC, Vietnam Phone: +84-8-3821-9839 Fax: +84-8-3821-9838

chennai br.

6th Floor, EA Chambers, No. 49, 50L, Whites Road, Royapettah, Chennai 600 014, IndiaPhone: +91-44-3346-6900Fax: +91-44-3346-6995

Sydney br. temporary office

Suite 25.03, Level 25, 363 George Street Sydney NSW 2000 Australia Phone: +61-2-8222-2200 Fax: +61-2-8222-2299

SuBSIdIARY u.S.A woori America bank

1250 Broadway New York, NY 10001, USA Phone: +1-212-244-3000 Fax: +1-212-736-5929

woori America bank, broadway br.

1250 Broadway New York, NY 10001, USA Phone: +1-212-244-1500 Fax: +1-212-736-5929

woori America bank, flushing br.

136-88 39th Avenue Flushing New York, NY 11354, USA Phone: +1-718-886-1988 Fax: +1-718-762-6898

woori America bank, fort Lee br.

2053 Lemoine Avenue Fort Lee, NJ 07024, USA Phone: +1-201-363-9300 Fax: +1-201-302-0452

woori America bank, woodside br.

43-22 50th St. Woodside, NY 11377, USA Phone: +1-718-429-1900 Fax: +1-718-429-2084

woori America bank, Ridgefield br.

321 Broad Avenue #104 Ridgefield, NJ 07657, USA Phone: +1-201-941-9999 Fax: +1-201-941-4419

woori America bank, Main Street br.

183 Main Street Fort Lee, NJ 07024, USA Phone: +1-201-947-6666 Fax: +1-201-947-3226

woori America bank, Palisades Park br.

225 Broad Avenue Palisades Park, NJ 07650, USA Phone: +1-201-346-0055 Fax: +1-201-346-0075

woori America bank, closter br.

234 Closter Dock Road Closter, NJ 07624, USA Phone: +1-201-784-7012 Fax: +1-201-784-7013

woori America bank, cheltenham br.

7400 Front Street Cheltenham, PA 19012, USA Phone: +1-215-782-2015 Fax: +1-215-782-8907

woori America bank, Elkins Park br.

7300 Old York Rd Elkins Park, PA 19027, USA Phone: +1-215-782-1100 Fax: +1-215-782-1500

woori America bank, Annandale br.

Seoul Plaza 4231 Markeham St,. Suite F Annandale, VA 22003, USA Phone: +1-703-256-7633 Fax: +1-703-256-7511

woori America bank, bayside br.

215-10 Northern Blvd. Bayside, NY 11361, USA Phone: +1-718-224-3800 Fax: +1-718-224-3828

woori America bank, wheaton br.

11925 Georgia Ave. Wheaton, MD 20902(Wheaton Park Shopping Center), USA Phone: +1-301-933-1175 Fax: +1-301-933-1560

woori America bank, wilshire br.

3540 Wilshire Blvd. Unit 104, Los Angeles, CA 90010, USA Phone: +1-213-382-8700 Fax: +1-213-382-8787

woori America bank, Olympic br.

2610 W. Olympic Blvd., Los Angeles, CA 90006, USA Phone: +1-213-738-1100 Fax: +1-213-738-1101

woori America bank, fullerton br.

5731 Beach Blvd., Buena Park, CA 90621, USA Phone: +1-714-521-3100 Fax: +1-714-521-3101

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wOORi bANk

woori America bank, Garden Grove br.

10120 Garden Grove Blvd., Garden Grove, CA 92844, USA Phone: +1-714-534-6300 Fax: +1-714-534-6301

woori America bank, centreville br.

13830 A-12 Braddock Road, Centreville, VA 20121, USA Phone: +1-703-988-9555 Fax: +1-703-988-9554

CHINA woori bank (china) Ltd.

26F, Tower A, Tianyuangang Centre, C2, North Road, East Third Ring Road, Chaoyang District, Beijing, 100027, China Phone: +86-10-8412-3000 Fax: +86-10-8440-0698

woori bank (china) Ltd., Head office business

1F, Tower A, Tianyuangang Centre, C2, North Road, East Third Ring Road, Chaoyang District, Beijing, 100027, China Phone: +86-10-8441-7771 Fax: +86-10-8446-4631

woori bank (china) Ltd., beijing br.

1F, West Tower, Twin Towers, B-12 Jianguomenwai Avenue, Chaoyang District, Beijing, 100022, China Phone: +86-10-8453-8880 Fax: +86-10-8453-8881

woori bank (china) Ltd., Shanghai br.

Drum Building 1-2F, Pos- Plaza, 1600 Century Avenue, Pudong New Area, Shanghai, 200122, China Phone: +86-21-5081-0707 Fax: +86-21-5081-2484

woori bank (china) Ltd., Shenzhen br.

B0105, B0210 Rongchao Landmark, 4028 Jintian Road, Futian District, Shenzhen, China Phone: +86-755-3338-1234 Fax: +86-755-3338-7227

woori bank (china) Ltd., Suzhou br.

101B, Sovereign Building, #8 Suhua Road, Suzhou Industrial Park,Jiangsu, China Phone: +86-512-6295-0777 Fax: +86-512-6295-2141

woori bank (china) Ltd., TianJin br.

No. 1 Building, Aocheng Commercial Square, Binshui West Road, Nankai District, Tianjin, 300381, China Phone: +86-22-2338-8008 Fax: +86-22-2392-5905

woori bank (china) Ltd., Shanghai Puxi Sub-br.

S115-S119, 1/F Maxdo center NO.8 Xing Yi Rd. Hong Qiao Development Zone Shanghai, 200336, China Phone: +86-21-6235-1717 Fax: +86-21-6235-1036

woori bank (china) Ltd., beijing wangjing Sub-br.

1F, No 10, Furong Street, Chaoyang District, Beijing, 100102, China Phone: +86-10-8471-8866 Fax: +86-10-8471-5245

woori bank (china) Ltd., Shanghai wuzhonglu

Sub-br.

1C, Liaoshen Building, 1068 Wuzhong Rd. Minhang Distrct, Shanghai, 200336,China Phone: +86-21-6446-7887 Fax: +86-21-6446-1200

woori bank (china) Ltd., Shenzhen futian Sub-br.

Room 107,201, Daqing Building, No. 6027, Shen Nan Road, Futian District, Shenzhen, China Phone: +86-755-8826-9000 Fax: +86-755-8826-9038

woori bank (china) Ltd., Shanghai Jinxiujiang-

nan Sub-br.

1F, 188 South Jinhui Road, Minhang District, Shanghai, 200237, China Phone: +86-21-3432-1116 Fax: +86-21-3432-1112

woori bank (china) Ltd., beijing Shunyi Sub-br.

1F Tower A, AMB Building, 2, Cangshang St, Shunyi District, 101300, China Phone: +86-10-8945-2220 Fax: +86-10-8949-3560

woori bank (china) Ltd., daLian br.

YOMA IFC, No.128 Jinma Road, Dalian Develop-ment Area, Dalian, 116600, P.R. China Phone: +86-411-8765-8000 Fax: +86-411-8765-8515

woori bank (china) Ltd., Zhangjiagang Sub-br.

11 Renmin East Road, Zhangjiagang, 215600, China Phone: +86-512-5636-6696 Fax: +86-512-5636-6697

woori bank (china) Ltd., chengdu br.

Unit 1of 1F, Unit 3-6 of 3F, Zhonghui Plaza(Phase II) No. 1 Renmin South Road, Chengdu, 610044, China Phone: +86-28-6557-2366 Fax: +86-28-6357-2369

INdONESIA P.T.bank woori indonesia

16th Fl., Jakarta Stock Exchange Bldg., JL. Jend Sudirman Kav.52-53, Jakarta 12190, Indonesia Phone: +62-21-515-1919 Fax: +62-21-515-1477 Swift: HVBKIDJA

Tangerang Sub-branch Office

Ruko Pinangsia Blok H No.1 Lippo Karawaci-Tangerang 15139, Indonesia Phone: +62-21-5577-2345 Fax: +62-21-5577-6363 Swift: HVBKIDJA

cikarang Sub-branch Office

Cikarang Commercial Center Block A1~A2, J1 Cikarang-Cibarusah KM.40 No.2, Cikarang Selatan Bekasi.,Indonesia Phone: +62-21-8983-5270 Fax: +62-21- 8983-5271 Swift: HVBKIDJA

cibubur Sub-branch Office

Cibubr Time Square Blok B1/1(3 floors) Jatisampurna Bekasi, Indonesia Phone: +62-21-8430-5050 Fax: +62-21-8430-5353 Swift: HVBKIDJA

krakatau Posco Sub-branch Office

Jl. Afrika No.2 Krakatau Industrial Estate, Chilegon 42443, Indonesia Phone: +62-25-436-9755 Fax: +62-25-436-9759 Swift: HVBKIDJA

HONgKONg woori Global Market Asia Limited

Rooms 1905-1908, 19/F, Gloucester Tower, The Landmark,15 Queen’s Road Central, Hong Kong Phone: +852-3763-0888 Fax: +852-3763-0808

RuSSIA Zao woori bank

8th floor, Lotte Plaza, 8, Novinsky Boulevard, Moscow, 121099, Russia Phone: +7-495-783-9787 Fax: +7-495-783-9788

Zao woori bank Saint-Petersburg br.

1st Floor, Atlantic City, 126 Savushkina Street, Saint-Petersburg, 197374, Russia Phone: +7-812-327-9787 Fax: +7-812-327-9789

OvERSEAS OFFICE MALAYSIA woori bank kuala Lumpur Representative Office

Suite 3A-2, Level 3A, Menara IMC, 8, Jalan Sultan Ismail, 50250, Kuala Lumpur, Malaysia Phone: +603-2078-0688 Fax: +603-2072-0688

uAE woori bank dubai Representative Office

#619, Level 6, Liberty House. DIFC, P.O.Box 506760, Dubai, U.A.E. Phone: +971-4-325-8365 Fax: +971-4-325-8366

BRAZIL(BRASIL) woori bank São Paulo Representative Office Rua Quintana, 887/Cj. 121, Brooklin Novo, 04569-011, São Paulo, SP, Brasil Phone: +55-11-2309-4740 Fax: +55-11-2309-4739


Woori Bankmakes youconfident in life!

203 Hoehyon-dong, 1-ka, Chung-ku, Seoul 100-792, Korea Tel. +82-2-2002-3000 www.wooribank.com

Woori Bank 2011 Annual Report

Documents

Transcript of Woori Bank 2011 Annual Report