Obligation Korea Trade Bank 2.5% ( US302154BX61 ) en USD

Korea Trade Bank

100 % ▲

Coree du Sud

US302154BX61 ( en USD )

2.5% par an ( paiement semestriel )

09/05/2021 - Obligation échue

Prospectus brochure de l'obligation The Export-Import Bank of Korea US302154BX61 en USD 2.5%, échue

200 000 USD

750 000 000 USD

302154BX6

AA ( Haute qualité )

Aa2 ( Haute qualité )

La Korea Export-Import Bank (KEXIM) est une banque publique sud-coréenne qui fournit un financement et une assurance-crédit aux entreprises coréennes engagées dans le commerce international.

L'Obligation émise par Korea Trade Bank ( Coree du Sud ) , en USD, avec le code ISIN US302154BX61, paye un coupon de 2.5% par an.
Le paiement des coupons est semestriel et la maturité de l'Obligation est le 09/05/2021

L'Obligation émise par Korea Trade Bank ( Coree du Sud ) , en USD, avec le code ISIN US302154BX61, a été notée Aa2 ( Haute qualité ) par l'agence de notation Moody's.

L'Obligation émise par Korea Trade Bank ( Coree du Sud ) , en USD, avec le code ISIN US302154BX61, a été notée AA ( Haute qualité ) par l'agence de notation Standard & Poor's ( S&P ).

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424B2 1 d98607d424b2.htm 424B2
Table of Contents
Filed pursuant to Rule 424(b)(2)
Registration Statement No. 333-203445

PROSPECTUS SUPPLEMENT
(To Prospectus Dated June 11, 2015)

The Export-Import Bank of Korea
(A statutory juridical entity established under The Export-Import Bank of Korea Act of 1969, as amended, in the Republic of Korea)
US$750,000,000 2.50% Notes due 2021
US$1,000,000,000 3.25% Notes due 2025
Our US$750,000,000 aggregate principal amount of notes due 2021 (the "2021 Notes") will bear interest at a rate of 2.50% per annum and our US$1,000,000,000 aggregate
principal amount of notes due 2025 (the "2025 Notes", and together with the 2021 Notes, the "Notes") will bear interest at a rate of 3.25% per annum. Interest on the Notes is payable
semi-annually in arrears on May 10 and November 10 of each year. The first interest payment on each of the Notes will be made on May 10, 2016 in respect of the period from (and
including) November 10, 2015 to (but excluding) May 10, 2016. The 2021 Notes will mature on May 10, 2021 and the 2025 Notes will mature on November 10, 2025.
The Notes will be issued in minimum denominations of US$200,000 principal amount and integral multiples of US$1,000 in excess thereof. The Notes will be represented by one
or more global securities registered in the name of a nominee of The Depository Trust Company, as depositary.

Neither the Securities and Exchange Commission nor any state securities commission has approved or disapproved of these securities or determined if this prospectus
supplement or the accompanying prospectus is truthful or complete. Any representation to the contrary is a criminal offense.

2021 Notes

2025 Notes

Per Note

Total

Per Note

Total

Public offering price

99.969%
US$749,767,500
99.746%
US$997,460,000
Underwriting discounts

0.300%
US$
2,250,000
0.300%
US$
3,000,000
Proceeds to us, before expenses

99.669%
US$747,517,500
99.446%
US$994,460,000
In addition to the initial public offering price, you will have to pay for accrued interest, if any, from and including November 10, 2015.
Approvals in-principle have been received from the Singapore Exchange Securities Trading Limited (the "SGX-ST") for the listing and quotation of the Notes. There can be no
assurance that such listing will be obtained for the Notes. The SGX -ST assumes no responsibility for the correctness of any statements made, opinions expressed or reports contained
herein. Approval in-principle from, admission of the Notes to the Official List of, and the listing and quotation of any Notes on, the SGX -ST are not to be taken as an indication of the
merits of the issuer or the Notes.
The underwriters expect to deliver the Notes to investors through the book-entry facilities of The Depository Trust Company on or about November 10, 2015.

Joint Bookrunners and Lead Managers

ANZ Securities

Barclays

BNP PARIBAS

BofA Merrill Lynch

Citigroup

Société Générale

Corporate & Investment Banking

Joint Lead Manager

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424B2
Samsung Securities Co., Ltd.

Prospectus Supplement Dated November 2, 2015
Table of Contents
You should rely only on the information contained in or incorporated by reference in this prospectus supplement and the accompanying
prospectus. We have not authorized anyone to provide you with different information. We are not making an offer of these securities in any state
where the offer is not permitted.
TABLE OF CONTENTS

Page
Prospectus Supplement

Summary of the Offering
S-6
Use of Proceeds
S-8
Recent Developments
S-9
Description of the Notes
S-87
Clearance and Settlement
S-89
Taxation
S-92
Underwriting
S-93
Legal Matters
S-97
Official Statements and Documents
S-97
General Information
S-97
Prospectus

Certain Defined Terms and Conventions

1
Use of Proceeds

2
The Export-Import Bank of Korea

3
Overview

3
Capitalization

4
Business

5
Selected Financial Statement Data

7
Operations

9
Description of Assets and Liabilities

14
Debt

23
Credit Policies, Credit Approval and Risk Management

25
Capital Adequacy

26
Overseas Operations

27
Property

28
Management and Employees

28
Tables and Supplementary Information

30
Financial Statements and the Auditors

39
The Republic of Korea
125
Land and History
125
Government and Politics
126
The Economy
130
Principal Sectors of the Economy
139
The Financial System
146
Monetary Policy
151
Balance of Payments and Foreign Trade
155
Government Finance
162
Debt
164
Tables and Supplementary Information
166
Description of the Securities
170
Description of Debt Securities
170
Description of Warrants
176
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Terms Applicable to Debt Securities and Warrants
177
Description of Guarantees
178
Limitations on Issuance of Bearer Debt Securities and Bearer Warrants
179

S-2
Table of Contents

Page
Taxation
180
Korean Taxation
180
United States Tax Considerations
182
Plan of Distribution
190
Legal Matters
191
Authorized Representatives in the United States
191
Official Statements and Documents
191
Experts
191
Forward-Looking Statements
192
Further Information
194

S-3
Table of Contents
CERTAIN DEFINED TERMS
All references to "we" or "us" mean The Export-Import Bank of Korea. All references to "Korea" or the "Republic" contained in this
prospectus supplement mean The Republic of Korea. All references to the "Government" mean the government of Korea. References to "?" or
"Won" are to the lawful currency of Korea and "US$" or "U.S. dollars" are to the lawful currency of the United States. Terms used but not defined
in this prospectus supplement shall have the same meanings given to them in the accompanying prospectus.
Unless otherwise indicated, all references to "2021 Notes" contained in this prospectus supplement are to the US$750,000,000 aggregate
principal amount of 2.50% notes due 2021 and all references to "2025 Notes" are to the US$1,000,000,000 aggregate principal amount of 3.25%
notes due 2025. Unless otherwise indicated, all references to the "Notes" are to the 2021 Notes and 2025 Notes, collectively.
In this prospectus supplement and the accompanying prospectus, where information has been provided in units of thousands, millions or
billions, such amounts have been rounded up or down. Accordingly, actual numbers may differ from those contained herein due to rounding. Any
discrepancy between the stated total amount and the actual sum of the itemized amounts listed in a table, is due to rounding.
Commencing in 2013, we prepare our financial statements in accordance with International Financial Reporting Standards as adopted in
Korea ("Korean IFRS" or "K-IFRS") and our separate financial information as of December 31, 2014 and June 30, 2015 and for the six months
ended June 30, 2015 and 2014 included in this prospectus supplement has been prepared in accordance with Korean IFRS. References in this
prospectus supplement to "separate" financial statements and information are to financial statements and information prepared on a non-
consolidated basis. Unless specified otherwise, our financial and other information included in this prospectus supplement is presented on a
separate basis in accordance with Korean IFRS and does not include such information with respect to our subsidiaries.
ADDITIONAL INFORMATION
The information in this prospectus supplement is in addition to the information contained in our accompanying prospectus dated June 11,
2015. The accompanying prospectus contains information regarding ourselves and Korea, as well as a description of some terms of the Notes. You
can find further information regarding us, Korea, and the Notes in registration statement no. 333-203445, as amended, relating to our debt
securities, with or without warrants, and guarantees, which is on file with the U.S. Securities and Exchange Commission.
WE ARE RESPONSIBLE FOR THE ACCURACY OF THE INFORMATION IN THIS DOCUMENT
We are responsible for the accuracy of the information in this document and confirm that to the best of our knowledge we have included all
facts that should be included not to mislead potential investors. The address of our registered office is 38 Eunhaeng-ro, Yeongdeungpo-gu, Seoul
07242, The Republic of Korea. The SGX-ST assumes no responsibility for the contents of this prospectus supplement and the accompanying
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prospectus, and makes no representation as to liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of
the contents of this prospectus supplement and the accompanying prospectus. Approval in-principle from, and admission of the Notes to the
Official List of, the SGX-ST are not to be taken as an indication of the merits of the issuer or the Notes.
NOT AN OFFER IF PROHIBITED BY LAW
The distribution of this prospectus supplement and the accompanying prospectus, and the offer of the Notes, may be legally restricted in some
countries. If you wish to distribute this prospectus supplement or the accompanying prospectus, you should observe any restrictions. This
prospectus supplement and the accompanying prospectus should not be considered an offer and it is prohibited to use them to make an offer, in any
state or country which prohibits the offering.
The Notes may not be offered or sold in Korea, directly or indirectly, or to any resident of Korea, except as permitted by Korean law.
For more information, see "Underwriting--Foreign Selling Restrictions."

S-4
Table of Contents
INFORMATION PRESENTED ACCURATE AS OF DATE OF DOCUMENT
This prospectus supplement and the accompanying prospectus are the only documents on which you should rely for information about the
offering. This prospectus supplement may only be used for the purposes for which it has been published. We have authorized no one to provide
you with different information. You should not assume that the information in this prospectus supplement or the accompanying prospectus is
accurate as of any date other than the date on the front of each document.

S-5
Table of Contents
SUMMARY OF THE OFFERING
This summary highlights selected information from this prospectus supplement and the accompanying prospectus and may not contain
all of the information that is important to you. To understand the terms of our Notes, you should carefully read this prospectus supplement
and the accompanying prospectus.
The Notes
We are offering US$750,000,000 aggregate principal amount of 2.50% notes due May 10, 2021 (the "2021 Notes") and
US$1,000,000,000 aggregate principal amount of 3.25% notes due November 10, 2025 (the "2025 Notes", and together with the 2021 Notes,
the "Notes").
The 2021 Notes will bear interest at a rate of 2.50% per annum and the 2025 Notes will bear interest at a rate of 3.25% per annum, in
each case payable semi-annually in arrears on May 10 and November 10 of each year. The first interest payment on each of the Notes will be
made on May 10, 2016 in respect of the period from (and including) November 10, 2015 to (but excluding) May 10, 2016. Interest on the
Notes will accrue from November 10, 2015, and will be computed based on a 360-day year consisting of twelve 30-day months. See
"Description of the Notes--Payment of Principal and Interest."
The Notes will be issued in minimum denominations of US$200,000 principal amount and integral multiples of US$1,000 in excess
thereof. The Notes will be represented by one or more global securities registered in the name of a nominee of The Depository Trust Company
("DTC"), as depositary.
We do not have any right to redeem the Notes prior to maturity.
Listing
Approvals in-principle have been received from the SGX-ST for the listing and quotation of the Notes. Settlement of the Notes is not
conditioned on obtaining the listing. There can be no assurance that such listing will be obtained for the Notes. The Notes will be traded on the
SGX-ST in a minimum board lot size of S$200,000 (or its equivalent in foreign currencies), for so long as the Notes are listed on the SGX-ST
and the rules of the SGX-ST so require. Accordingly, the Notes will be traded on the SGX-ST in a minimum board lot size of US$200,000.
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Form and settlement
We will issue each series of the Notes in the form of one or more fully registered global notes, registered in the name of a nominee of
DTC. Except as described in the accompanying prospectus under "Description of the Securities--Description of Debt Securities--Global
Securities," the global notes will not be exchangeable for Notes in definitive registered form, and will not be issued in definitive registered
form. Financial institutions, acting as direct and indirect participants in DTC, will represent your beneficial interests in the global notes. These
financial institutions will record the ownership and transfer of your beneficial interest through book-entry accounts. You may hold your
beneficial interests in the Notes through Euroclear Bank S.A./N.V. ("Euroclear") or Clearstream Banking, société anonyme ("Clearstream") if
you are a participant in such systems, or indirectly through organizations that are participants in such systems. Any secondary market trading
of book-entry interests in the Notes will take place through DTC participants, including Euroclear and Clearstream. See "Clearance and
Settlement--Transfers Within and Between DTC, Euroclear and Clearstream."

S-6
Table of Contents
Further Issues
We may from time to time, without the consent of the holders of the Notes, create and issue additional debt securities with the same
terms and conditions as either series of the Notes in all respects so that such further issue shall be consolidated and form a single series with
the relevant series of the Notes. We will not issue any such additional debt securities unless such additional securities have no more than a de
minimis amount of original issue discount or such issuance would constitute a "qualified reopening" for U.S. federal income tax purposes.
Delivery of the Notes
We expect to make delivery of the Notes, against payment in same-day funds on or about November 10, 2015, which we expect will be
the sixth business day following the date of this prospectus supplement, referred to as "T+6." You should note that initial trading of the Notes
may be affected by the T+6 settlement. See "Underwriting--Delivery of the Notes."

S-7
Table of Contents
USE OF PROCEEDS
We will use the net proceeds from the sale of the Notes for our general operations, including extending foreign currency loans and repayment
of our maturing debt and other obligations.

S-8
Table of Contents
RECENT DEVELOPMENTS
This section provides information that supplements the information about our bank and the Republic included under the headings
corresponding to the headings below in the accompanying prospectus dated June 11, 2015. Defined terms used in this section have the meanings
given to them in the accompanying prospectus. If the information in this section differs from the information in the accompanying prospectus, you
should rely on the information in this section.
THE EXPORT-IMPORT BANK OF KOREA
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Overview
As of June 30, 2015, we had ?66,650 billion of outstanding loans, including ?35,436 billion of outstanding export credits, ?23,688 billion of
outstanding overseas investment credits and ?3,894 billion of outstanding import credits, as compared to ?63,287 billion of outstanding loans,
including ?32,042 billion of outstanding export credits, ?21,700 billion of outstanding overseas investment credits and ?4,388 billion of outstanding
import credits as of December 31, 2014.
Capitalization
As of June 30, 2015, our authorized capital was ?15,000 billion and our capitalization was as follows:

June 30, 2015(1)
(billions of Won)

(unaudited)

Long-Term Debt(2)(3)(4)(5):

Borrowings in Korean Won

?
--
Borrowings in Foreign Currencies

4,969
Export-Import Financing Debentures

35,816

Total Long-term Debt

?
40,784

Capital:

Paid-in Capital(6)

?
7,788
Retained Earnings

2,042
Legal Reserve

327
Voluntary Reserve

1,107
Reserve for Bad Loan

572
Unappropriated Retained Earnings

36
Other Components of Equity

114

Total Capital

?
9,943

Total Capitalization

?
50,727

(1)
Except as described in this prospectus supplement, there has been no material adverse change in our capitalization since June 30, 2015.
(2)
We have translated borrowings in foreign currencies as of June 30, 2015 into Won at the rate of ?1,124.1 to US$1.00, which was the market
average exchange rate as announced by the Seoul Monetary Brokerage Services Ltd., on June 30, 2015.
(3)
As of June 30, 2015, we had contingent liabilities totaling ?65,194 billion, which consisted of ?52,129 billion under confirmed guarantees and
?13,065 billion under unconfirmed guarantees issued on behalf of our clients.
(4)
As of June 30, 2015, we had entered into 260 interest rate related derivative contracts with a notional amount of ?19,240 billion and 290
currency related derivative contracts with a notional amount of ?20,900 billion in accordance with our policy to hedge interest rate and
currency risks.

S-9
Table of Contents
(5)
All of our borrowings, whether domestic or international, are unsecured and unguaranteed.
(6)
As of June 30, 2015, authorized ordinary share capital was ?15,000 billion and issued fully-paid ordinary share capital was ?7,788 billion.
Business
Government Support and Supervision
In August and September 2015, the Government contributed ?75 billion in cash and ?15 billion in cash, respectively, to our capital. As of
September 30, 2015, our paid-in capital was ?7,878 billion compared to ?7,788 billion as of June 30, 2015.
Selected Financial Statement Data
You should read the following financial statement data together with our separate financial statements and notes included in this prospectus
supplement. The following tables present selected separate financial information for the six months ended June 30, 2015 and 2014 and as of
June 30, 2015 and December 31, 2014, which has been derived from our unaudited separate K-IFRS financial statements as of and for the six
months ended June 30, 2015 and 2014 included in this prospectus supplement:

Six Months Ended

June 30,

2015

2014

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(billions of Won)

(unaudited)

Income Statement Data

Total Interest Income

?
888
?
822
Total Interest Expense

602

645
Net Interest Income (Expenses)

287

177
Operating Income

55

105
Income before Income Tax

60

108
Income Tax Benefit (Expense)

(24)

(31)
Net Income

36

77
As of
As of
June 30,
December
2015
31,

(unaudited)
2014

(billions of Won)

Balance Sheet Data

Total Loan Credits(1)

? 66,650
? 63,287
Total Borrowings(2)

62,088
57,310
Total Assets

76,622
73,074
Total Liabilities

66,679
63,194
Total Shareholders' Equity(3)

9,943

9,880

(1)
Gross amount, which includes bills bought, foreign exchange bought, call loans, inter-bank loans in foreign currency and others without
adjusting for valuation adjustment of loans in foreign currencies, deferred loan origination fees or allowance for loan losses.
(2)
Includes debentures.
(3)
Includes unappropriated retained earnings.

S-10
Table of Contents
For the six months ended June 30, 2015, we had net income of ?36 billion compared to net income of ?77 billion for the six months ended
June 30, 2014. The principal factors for the decrease in net income for the six months ended June 30, 2015 compared to the six months ended
June 30, 2014 included:

· net loss on hedging derivatives of ?696 billion in the first half of 2015 compared to net gain of ?518 billion in the corresponding period

of 2014, primarily due to valuation losses from cross currency swap transactions; and

· net loss from trading derivatives of ?249 billion in the first half of 2015 compared to net gain of ?229 billion in the corresponding

period of 2014, primarily due to valuation losses from cross currency swap transactions.
The above factors were partially offset by (i) net gain on foreign exchange transaction of ?922 billion in the first half of 2015 compared to
net loss of ?435 billion in the corresponding period of 2014, primarily due to the depreciation of the Won against foreign currencies in the first half
of 2015 and (ii) an increase in net interest income to ?287 billion in the six months ended June 30, 2015 from ?177 billion in the corresponding
period of 2014, primarily due to an increase in interest income resulting from increased Loan Credits as well as a decrease in interest expense
resulting from a decrease in average interest rate on debentures.
As of June 30, 2015, our total assets increased by 5% to ?76,622 billion from ?73,074 billion as of December 31, 2014, primarily due to a
5% increase in Loan Credits to ?66,650 billion as of June 30, 2015 from ?63,287 billion as of December 31, 2014.
As of June 30, 2015, our total liabilities increased by 6% to ?66,679 billion from ?63,194 billion as of December 31, 2014. The increase in
liabilities was primarily due to an 8% increase in debentures to ?50,889 billion as of June 30, 2015 from ?47,292 billion as of December 31, 2014.
The increase in assets and liabilities was primarily due to an increase in the volume of loans and debt, respectively. The depreciation of the
Won against the U.S. dollar as of June 30, 2015 compared to December 31, 2014 magnified the effect of the increase in the volume of loans and
debt, as a majority of our assets and liabilities consisted of foreign currency loans and debt (including a significant percentage in U.S. dollars).
As of June 30, 2015, our total shareholders' equity increased by 1% to ?9,943 billion from ?9,880 billion as of December 31, 2014, primarily
due to the Government's ?40 billion contribution to our capital in January 2015.
Operations
Loan Operations
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In the first half of 2015, we provided total loans of ?30,380 billion, an increase of 9% from the corresponding period of 2014.
Export Credits
As of June 30, 2015, export credits in the amount of ?35,436 billion represented 53% of our total outstanding Loan Credits. Our
disbursements of export credits amounted to ?19,478 billion in the first half of 2015, a decrease of 4% from the corresponding period of 2014,
which was mainly due to a decrease in demand for loan financing from domestic exporters. The depreciation of the Won against the U.S. dollar as
of June 30, 2015 compared to June 30, 2014 partially offset the effect of the decrease in the volume of export credits in the first half of 2015, as a
majority of our export credits consisted of foreign currency credits (including a significant percentage in U.S. dollars).

S-11
Table of Contents
Overseas Investment Credits
As of June 30, 2015, overseas investment credits amounted to ?23,688 billion, representing 36% of our total outstanding Loan Credits. Our
disbursements of overseas investment credits in the first half 2015 increased by 36% to ?7,050 billion from the corresponding period of 2014,
primarily due to increased demand in overseas investment and project credits. The depreciation of the Won against the U.S. dollar as of June 30,
2015 compared to June 30, 2014 magnified the effect of the increase in the volume of overseas investment credits in the first half of 2015, as a
majority of our overseas investment credits consisted of foreign currency credits (including a significant percentage in U.S. dollars).
Import Credits
As of June 30, 2015, import credits in the amount of ?3,894 billion represented 6% of our total outstanding Loan Credits. Our disbursements
of import credits amounted to ?3,852 billion in the first half of 2015, an increase of 62% over the corresponding period of 2014, which was mainly
due to an increase in demand for financing for raw materials used for exports and domestic consumption. The depreciation of the Won against the
U.S. dollar as of June 30, 2015 compared to June 30, 2014 magnified the effect of the increase in the volume of import credits in the first half of
2015, as a significant portion of our import credits consisted of foreign currency credits (including a significant percentage in U.S. dollars).
Guarantee Operations
Guarantee commitments as of June 30, 2015 increased to ?65,194 billion from ?61,373 billion as of December 31, 2014. Guarantees we had
confirmed as of June 30, 2015 increased to ?52,129 billion from ?48,058 billion as of December 31, 2014.
For further information regarding our guarantee and letter of credit operations, see "Notes to Separate Financial Statements of June 30, 2015
and 2014--Note 36".
Description of Assets and Liabilities
Total Credit Exposure
The following table sets out our Credit Exposure as of June 30, 2015, categorized by type of exposure extended:

June 30, 2015

(billions of Won, except

for percentages)

A
Loans in Won

?
13,790

12%
B
Loans in Foreign Currencies

48,238

41
C
Loans (A+B)

62,028

53
D
Other Loans

1,103

1
E
Call Loans and Inter-bank Loans in Foreign Currency

3,519

3
F
Loan Credits (C+D+E)

66,650

57
G
Allowances for Possible Loan Losses

(2,020)

(2)
H
Loan Credits including PVD (F-G)

64,630

55
I
Guarantees

52,129

45
J
Credit Exposure (H+I)

? 116,759
100%

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Table of Contents
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Loan Credits by Geographic Area
The following table sets out the total amount of our outstanding Loan Credits (including call loans and inter-bank loans in foreign currency)
as of June 30, 2015, categorized by geographic area(1):

As % of
June 30, 2015

June 30, 2015

Total

(billions of Won, except for percentages)

Asia

?
49,890

75%
Europe

5,631

8
America

7,307

11
Africa

3,823

6

Total

?
66,650

100%

(1)
For purposes of this table, export credits have been allocated to the geographic areas in which the foreign buyers of Korean exports are
located; overseas investment credits have been allocated to the geographic areas in which the overseas investments being financed are
located; and import credits have been allocated to the geographic areas in which the sellers of the imported goods are located.
Source: Internal accounting records.
Our Loans to Iran represented 0.1% and 0.1% of our total assets as of December 31, 2014 and June 30, 2015, respectively, and also
represented 0.2% and 0.1% of our Loan Credits, respectively, as of the above dates. Our total revenues from transactions with Iran in 2014 and the
first half of 2015 represented 0.2% and 0.1% of our total revenues, respectively, in those periods.
Individual Exposure
As of June 30, 2015, our largest Credit Exposure was to Daewoo Shipbuilding & Marine Engineering in the amount of ?8,317 billion.
As of June 30, 2015, our second and third largest Credit Exposures were to Hyundai Heavy Industries in the amount of ?5,046 billion and to
GS Engineering & Construction in the amount of ?3,546 billion, respectively.
The following table sets out our five largest Credit Exposures as of June 30, 2015(1):

Rank
Name of Borrower

Loans
Guarantees
Total

(billions of Won)

1

Daewoo Shipbuilding & Marine Engineering

?1,201
?
7,116
?8,317
2

Hyundai Heavy Industries

1,391

3,655
5,046
3

GS Engineering & Construction

1,278

2,268
3,546
4

Hanwha Engineering & Construction

169

3,288
3,457
5

Samsung Heavy Industries

400

2,924
3,324

(1)
Includes loans and guarantees extended to affiliates.
Source: Internal accounting records.
Asset Quality
Asset Classifications
The following table provides information on our asset quality and loan loss reserves as of June 30, 2015:

As of June 30, 2015

Loan
Loan
Loss

Amount (1)
Reserve(2)
Normal

?109,394
?
761
Precautionary

3,412

542
Sub-standard

898

417
Doubtful

1,339

836
Estimated Loss

159

159

Total

?115,202
? 2,715

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424B2

(1)
These figures include loans (excluding interbank loans and call loans), domestic usance, bills bought, foreign exchange bought, advances for
customers, and confirmed acceptances and guarantees.
(2)
These figures include present value discount.
Reserves for Credit Losses
As of June 30, 2015, the amount of our non-performing assets was ?1,511 billion, an increase of 220% from ?472 billion as of December 31,
2014. As of June 30, 2015, our non-performing asset ratio was 1.3%, compared to 0.4% as of December 31, 2014.
We cannot provide any assurance that our current level of exposure to non-performing assets will not increase in the future or that any of our
borrowers (including our largest borrowers as described above) is not currently facing, or in the future will not face, material financial difficulties.
The following table sets forth information regarding our loan loss reserves as of June 30, 2015:

June 30, 2015

(billions of Won,

except for percentages)
Loan Loss Reserve (A)

?
2,715
NPA (B)(1)

1,511
Total Equity (C)

9,943
Reserve to NPA (A/B)

179.6%
Equity at Risk (B-A)/C

--

(1)
Non-performing assets, which are defined as (a) assets classified as doubtful and estimated loss, (b) assets for which principal or interest
payments are delinquent by more than 3 months or (c) assets exempted from interest payments due to restructuring or rescheduling.
Source: Internal accounting records.
Investments
As of June 30, 2015, our total investment in securities amounted to ?5,604 billion, representing 7% of our total assets.
The following table sets out the composition of our investment securities as of June 30, 2015:

Type of Investment Securities

Amount
%

(billions of Won)

Available-for-Sale Securities

?4,834
86%
Held-to-Maturity Securities

111

2
Investments in Associates and Subsidiaries

659
12

Total

?5,604
100%

For further information relating to the classification guidelines and methods of valuation of our financial instruments (including securities),
see "Notes to Separate Financial Statements of June 30, 2015 and 2014--Note 5".
Guarantees and Acceptances and Contingent Liabilities
As of June 30, 2015, we had issued a total amount of ?52,129 billion in confirmed guarantees and acceptances, of which ?50,448 billion,
representing 97% of the total amount, was classified as normal and ?1,236 billion, representing 2% of the total amount, was classified as
precautionary, and ?445 billion, representing 1% of the total amount, was classified as substandard or below.

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Derivatives
As of June 30, 2015, our outstanding loans made at floating rates of interest totaled approximately ?44,484 billion, whereas our outstanding
borrowings made at floating rates of interest totaled approximately ?31,764 billion, including those raised in Swiss franc, Hong Kong dollar, Brazil
real, Saudi riyal, Czech koruna and Euro and swapped into U.S. dollar floating rate borrowings. As of June 30, 2015, we had entered into 290
currency related derivative contracts with a notional amount of ?20,900 billion and had entered into 260 interest rate related derivative contracts
with a notional amount of ?19,240 billion. See "Notes to Separate Financial Statements of June 30, 2015 and 2014--Note 20".
Sources of Funding
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Document Outline

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