Obbligazione KEXEM 2.875% ( US302154BT59 ) in USD

KEXEM

99.55 USD ▲

Corea del Sud

US302154BT59 ( in USD )

2.875% per anno ( pagato 2 volte l'anno)

20/01/2025 - Obbligazione è scaduto

Prospetto opuscolo dell'obbligazione KEXIM US302154BT59 in USD 2.875%, scaduta

302154BT5

KEXIM è l'agenzia di credito all'esportazione della Corea del Sud che fornisce finanziamenti e assicurazioni per promuovere il commercio internazionale.

The Obbligazione issued by KEXEM ( Republic of Korea ) , in USD, with the ISIN code US302154BT59, pays a coupon of 2.875% per year.
The coupons are paid 2 times per year and the Obbligazione maturity is 20/01/2025

424(B)(2)
424B2 1 d845675d424b2.htm 424(B)(2)
Table of Contents
Filed pursuant to Rule 424(b)(2)
Registration Statement No. 333-180273

PROSPECTUS SUPPLEMENT
(To Prospectus Dated August 1, 2014)

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$1,000,000,000 2.250% Notes due 2020
US$1,250,000,000 2.875% Notes due 2025
Our US$1,000,000,000 aggregate principal amount of notes due 2020 (the "2020 Notes") will bear interest at a rate of 2.250% per annum and
our US$1,250,000,000 aggregate principal amount of notes due 2025 (the "2025 Notes", and together with the 2020 Notes, the "Notes") will bear
interest at a rate of 2.875% per annum. Interest on the Notes is payable semi-annually in arrears on January 21 and July 21 of each year. The first
interest payment on each of the Notes will be made on July 21, 2015 in respect of the period from (and including) January 21, 2015 to (but
excluding) July 21, 2015. The 2020 Notes will mature on January 21, 2020 and the 2025 Notes will mature on January 21, 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.

2020 Notes

2025 Notes

Per Note

Total

Per Note

Total

Public offering price

99.821%
US$998,210,000
99.483%
US$1,243,537,500
Underwriting discounts

0.300%
US$
3,000,000
0.300%
US$
3,750,000
Proceeds to us, before expenses

99.521%
US$995,210,000
99.183%
US$1,239,787,500
In addition to the initial public offering price, you will have to pay for accrued interest, if any, from and including January 21, 2015.
Application will be made to 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
January 21, 2015.

Joint Bookrunners and Lead Managers

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424(B)(2)
Barclays
BofA Merrill Lynch

Citigroup

Deutsche Bank

HSBC

J.P. Morgan

The Royal Bank of Scotland

Joint Lead Manager
Samsung Securities Co., Ltd.
Prospectus Supplement Dated January 12, 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-115
Clearance and Settlement
S-117
Taxation
S-120
Underwriting
S-122
Legal Matters
S-126
Official Statements and Documents
S-126
General Information
S-126
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

27
Management and Employees

28
Tables and Supplementary Information

30
Financial Statements and the Auditors

38
The Republic of Korea

161
Land and History

161
Government and Politics

163
The Economy

167
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424(B)(2)
Principal Sectors of the Economy

175
The Financial System

182
Monetary Policy

188
Balance of Payments and Foreign Trade

191
Government Finance

199
Debt

201
Tables and Supplementary Information

203
Description of the Securities

208
Description of Debt Securities

208
Description of Warrants

214
Terms Applicable to Debt Securities and Warrants

215
Description of Guarantees

216
Limitations on Issuance of Bearer Debt Securities and Bearer Warrants

217

S-2
Table of Contents

Page
Taxation
218
Korean Taxation
218
United States Tax Considerations
220
Plan of Distribution
227
Legal Matters
228
Authorized Representatives in the United States
228
Official Statements and Documents
228
Experts
228
Forward-Looking Statements
229
Further Information
231

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 "2020 Notes" contained in this prospectus supplement are to the US$1,000,000,000 aggregate
principal amount of 2.250% notes due 2020 and all references to "2025 Notes" are to the US$1,250,000,000 aggregate principal amount of 2.875%
notes due 2025. Unless otherwise indicated, all references to the "Notes" are to the 2020 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.
Prior to 2013, we prepared our financial statements in accordance with generally accepted accounting principles in Korea ("Korean GAAP"
or "K-GAAP"). 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, 2013, June 30, 2014 and September
30, 2014 and for the six months ended June 30, 2014 and 2013 and the nine months ended September 30, 2014 and 2013 included in this
prospectus supplement has been prepared in accordance with Korean IFRS, which differs in certain significant respects from Korean GAAP.
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.
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424(B)(2)
ADDITIONAL INFORMATION
The information in this prospectus supplement is in addition to the information contained in our accompanying prospectus dated August 1,
2014. 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. 333-180273, 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 16-1, Youido-dong, Youngdeungpo-gu,
Seoul 150-996, The Republic of Korea. The SGX-ST assumes no responsibility for the contents of this prospectus supplement and the
accompanying 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, 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.

S-4
Table of Contents
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."
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$1,000,000,000 aggregate principal amount of 2.250% notes due January 21, 2020 (the "2020 Notes") and
US$1,250,000,000 aggregate principal amount of 2.875% notes due January 21, 2025 (the "2025 Notes", and together with the 2020 Notes, the
"Notes").
The 2020 Notes will bear interest at a rate of 2.250% per annum and the 2025 Notes will bear interest at a rate of 2.875% per annum, in
each case payable semi-annually in arrears on January 21 and July 21 of each year. The first interest payment on each of the Notes will be
made on July 21, 2015 in respect of the period from (and including) January 21, 2015 to (but excluding) July 21, 2015. Interest on the Notes
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424(B)(2)
will accrue from January 21, 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
Application will be made to 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.
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 the Notes in all respects so that such further issue shall be consolidated and form a single series with 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 January 21, 2015, which we expect will be the
sixth business day following the date of this prospectus supplement. 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
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424(B)(2)
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 August 1, 2014. 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
Unless specified otherwise, the information provided below is stated on a separate basis in accordance with Korean IFRS. Our financial
information as of and for the nine months ended September 30, 2014 and 2013 in this prospectus supplement is presented based on our unaudited
internal management accounts.
Overview
As of June 30, 2014, we had ?54,280 billion of outstanding loans, including ?30,392 billion of outstanding export credits, ?18,292 billion of
outstanding overseas investment credits and ?2,418 billion of outstanding import credits, as compared to ?53,809 billion of outstanding loans,
including ?28,664 billion of outstanding export credits, ?18,393 billion of outstanding overseas investment credits and ?2,203 billion of outstanding
import credits as of December 31, 2013.
In August 2013, the Financial Services Commission announced the Government's plan to reorganize Government-owned policy banks and
financial corporations in order to streamline their overlapping functions and respond systematically to rapidly changing domestic and international
economic conditions. The plan called for, among other things, the transfer of Korea Finance Corporation's overseas financing business to us and
the merger of Korea Finance Corporation into The Korea Development Bank. Korea Finance Corporation's overseas financing portfolio included
financing of shipping, aerospace, infrastructure and energy projects. On October 31, 2014, pursuant to the Government's plan, we entered into an
asset sale and purchase agreement with Korea Finance Corporation whereby we agreed to purchase Korea Finance Corporation's overseas
financing business related assets in 16 projects at the book value price of approximately US$1.3 billion. Such assets were transferred to us on
November 10, 2014, and we are scheduled to pay the purchase price for such assets sometime during the first quarter of 2015 to The Korea
Development Bank, which completed the merger with Korea Finance Corporation on December 31, 2014. We expect the transfer to bolster our
existing overseas policy financing business and expand our portfolio of project financing and other overseas assets.

S-9
Table of Contents
Capitalization
As of September 30, 2014, our authorized capital was ?15,000 billion and our capitalization was as follows:

September 30, 2014(1)

(billions of Won)

(unaudited)

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

Borrowings in Korean Won

?
--
Borrowings in Foreign Currencies

3,308
Export-Import Financing Debentures

29,367

Total Long-term Debt

?
32,675

Capital:

Paid-in Capital(6)

?
7,748
Retained Earnings

2,071
Legal Reserve

320
Voluntary Reserve

1,634
Unappropriated Retained Earnings

117
Accumulated other comprehensive income

65

Total Capital

?
9,884

Total Capitalization

?
42,559

(1)
Except as described in this prospectus supplement, there has been no material adverse change in our capitalization since September 30, 2014.
(2)
We have translated borrowings in foreign currencies as of September 30, 2014 into Won at the rate of ?1,059.6 to US$1.00, which was the
market average exchange rate as announced by the Seoul Monetary Brokerage Services Ltd., on September 30, 2014.
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424(B)(2)
(3)
As of September 30, 2014, we had contingent liabilities totaling ?58,745 billion, which consisted of ?46,246 billion under outstanding
guarantees and acceptances and ?12,499 billion under contingent guarantees and acceptances issued on behalf of our clients.
(4)
As of September 30, 2014, we had entered into 146 interest rate related derivative contracts with a notional amount of ?12,447.5 billion and
236 currency related derivative contracts with a notional amount of ?15,426.2 billion in accordance with our policy to hedge interest rate and
currency risks.
(5)
All of our borrowings, whether domestic or international, are unsecured and unguaranteed.
(6)
As of September 30, 2014, authorized ordinary share capital was ?15,000 billion and issued fully-paid ordinary share capital was ?7,748
billion. In July 2014, the Government contributed ?380 billion in the form of shares of common stock of Korea Land & Housing Corporation
to our capital.
Business
Government Support and Supervision
In July 2014, the Government contributed ?380 billion in the form of shares of common stock of Korea Land & Housing Corporation to our
capital. As of September 30, 2014, our paid-in capital was ?7,748 billion compared to ?7,368 billion as of June 30, 2014.
Selected Financial Statement Data
Recent Developments
As of September 30, 2014, we had ?55,721 billion of outstanding loans, including ?31,182 billion of outstanding export credits, ?19,162
billion of outstanding overseas investment credits and ?3,166 billion of

S-10
Table of Contents
outstanding import credits, as compared to ?54,280 billion of outstanding loans, including ?30,392 billion of outstanding export credits, ?18,292
billion of outstanding overseas investment credits and ?2,418 billion of outstanding import credits as of June 30, 2014.
The following tables present selected separate financial information as of September 30, 2014 and June 30, 2014 and for the nine months
ended September 30, 2014 and 2013, which has been derived from our unaudited separate internal management accounts as of September 30, 2014
and for the nine months ended September 30, 2014 and 2013 prepared in accordance with Korean IFRS.

Nine Months Ended

September 30,

2014
2013

(billions of Won)

(unaudited)

Income Statement Data

Total Interest Income

?1,240
?1,260
Total Interest Expenses

964

995
Net Interest Income (Expenses)

276

265
Total Revenues

3,526
4,138
Total Expenses

3,347
4,090
Income before Income Taxes

179

48
Income Tax Benefit (Expense)

(62)

(11)
Net Income

117

37

As of
As of
September 30,
June 30,
2014
2014

(unaudited)
(unaudited)

(billions of Won)

Balance Sheet Data

Total Loans(1)

?
55,721
? 54,280
Total Borrowings(2)

50,832
49,660
Total Assets

64,126
61,743
Total Liabilities

54,242
52,430
Total Shareholders' Equity(3)

9,884

9,313

(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 financial liabilities at fair value through profit or loss, borrowings and debentures.
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424(B)(2)
(3)
Includes unappropriated retained earnings.
For the nine months ended September 30, 2014, we had net income of ?117 billion compared to net income of ?37 billion for the nine
months ended September 30, 2013.
The principal factor for the increase in net income for the nine months ended September 30, 2014 compared to the nine months ended
September 30, 2013 was a decrease in provision for possible loan losses to ?329 billion in the nine months ended September 30, 2014 from ?455
billion in the corresponding period of 2013, primarily due to decreased non-performing assets. That factor was partially offset by a decrease in
gain on disposal of available-for-sale securities to ?6 billion in the nine months ended September 30, 2014 from ?22 billion in the corresponding
period of 2013; the ?6 billion gain in the nine months ended September 30, 2014 reflected principally the sale of our equity interest in Kumho Tire
Co., Inc. and the ?22 billion gain in the nine months ended September 30, 2013 reflected principally the sale of our equity interest in SK Networks
Co., Ltd. and Kumho Tire Co., Inc.

S-11
Table of Contents
As of September 30, 2014, our total assets increased by 4% to ?64,126 billion from ?61,743 billion as of June 30, 2014, primarily due to a
3% increase in loans to ?55,721 billion as of September 30, 2014 from ?54,280 billion as of June 30, 2014.
As of September 30, 2014, our total liabilities increased by 3% to ?54,242 billion from ?52,430 billion as of June 30, 2014. The increase in
liabilities was primarily due to a 2% increase in debentures to ?44,260 billion as of September 30, 2014 from ?43,521 billion as of June 30, 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 September 30, 2014 compared to June 30, 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.
As of September 30, 2014, our total shareholders' equity increased by 6% to ?9,884 billion from ?9,313 billion as of June 30, 2014,
primarily due to the Government's ?380 billion contribution to our capital in July 2014.
Results of Operations
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, 2014 and 2013 and as of
June 30, 2014 and December 31, 2013, which has been derived from our unaudited separate K-IFRS financial statements as of and for the six
months ended June 30, 2014 and 2013 included in this prospectus supplement:

Six Months Ended June 30,

2014
2013

(billions of Won)

(unaudited)

Income Statement Data

Total Interest Income

?
822
?
830
Total Interest Expense

645

595
Net Interest Income (Expenses)

177

236
Operating Income

105

60
Income before Income Tax

108

65
Income Tax Benefit (Expense)

31

17
Net Income

77

48

As of
June 30,
As of
2014
December 31,

(unaudited)
2013

(billions of Won)

Balance Sheet Data

Total Loans(1)

? 54,280
?
53,809
Total Borrowings(2)

49,660

48,198
Total Assets

61,743

60,933
Total Liabilities

52,430

51,683
Total Shareholders' Equity(3)

9,313

9,250

(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.
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424(B)(2)
(2)
Includes debentures.
(3)
Includes unappropriated retained earnings.

S-12
Table of Contents
For the six months ended June 30, 2014, we had net income of ?77 billion compared to net income of ?48 billion for the six months ended
June 30, 2013.
The principal factor for the increase in net income for the six months ended June 30, 2014 compared to the six months ended June 30, 2013
was a decrease in impairment loss on credit to ?212 billion in the six months ended June 30, 2014 from ?362 billion in the corresponding period of
2013, primarily due to decreased non-performing assets. That factor was partially offset by a decrease in net interest income to ?177 billion in the
six months ended June 30, 2014 from ?236 billion in the corresponding period of 2013, primarily due to an increase in interest expense resulting
from increased debentures in foreign currency.
As of June 30, 2014, our total assets increased by 1% to ?61,743 billion from ?60,933 billion as of December 31, 2013, primarily due to a
1% increase in loans to ?54,280 billion as of June 30, 2014 from ?53,809 billion as of December 31, 2013.
As of June 30, 2014, our total liabilities increased by 1% to ?52,430 billion from ?51,683 billion as of December 31, 2013. The increase in
liabilities was primarily due to a 2% increase in debentures to ?43,521 billion as of June 30, 2014 from ?42,710 billion as of December 31, 2013.
The increase in assets and liabilities was primarily due to an increase in the volume of loans and debt, respectively. The appreciation of the
Won against the U.S. dollar as of June 30, 2014 compared to June 30, 2013 partially offset 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.
As of June 30, 2014, our total shareholders' equity increased by 1% to ?9,313 billion from ?9,250 billion as of December 31, 2013, due to
the Government's ?130 billion contribution to our capital in January 2014, a 4% increase in retained earnings to ?2,031 billion from ?1,954 billion,
and loss on valuation of available-for-sale securities of ?90 billion as of June 30, 2014 compared to gain on valuation of available-for-sale
securities of ?54 billion as of December 31, 2013.
Operations
Loan Operations
In the first half of 2014, we provided total loans of ?27,945 billion, a decrease of 8% from the corresponding period of 2013.
Export Credits
As of June 30, 2014, export credits in the amount of ?30,392 billion represented 56% of our total outstanding loans. Our disbursements of
export credits amounted to ?20,362 billion in the first half of 2014, a decrease of 4% from the corresponding period of 2013, which was mainly
due to a decrease in demand for loan financing from domestic exporters. The appreciation of the Won against the U.S. dollar as of June 30, 2014
compared to June 30, 2013 magnified the effect of the decrease in the volume of export credits in the first half of 2014, as a majority of our export
credits consisted of foreign currency credits.
Overseas Investment Credits
As of June 30, 2014, overseas investment credits amounted to ?18,292 billion, representing 34% of our total outstanding loans. Our
disbursements of overseas investment credits in the first half 2014 decreased by 10% to ?5,200 billion from the corresponding period of 2013,
primarily due to decreased demand in overseas investment and project credits. The appreciation of the Won against the U.S. dollar as of June 30,
2014 compared to June 30, 2013 magnified the effect of the decrease in the volume of overseas investment credits in the first half of 2014, as a
majority of our overseas investment credits consisted of foreign currency credits.

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Import Credits
As of June 30, 2014, import credits in the amount of ?2,418 billion represented 4% of our total outstanding loans. Our disbursements of
import credits amounted to ?2,383 billion in the first half of 2014, a decrease of 29% over the corresponding period of 2013, which was mainly due
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424(B)(2)
to a decrease in demand for financing for raw materials used for export and domestic consumption. The appreciation of the Won against the U.S.
dollar as of June 30, 2014 compared to June 30, 2013 magnified the effect of the decrease in the volume of import credits in the first half of 2014,
as a significant portion of our import credits consisted of foreign currency credits.
Guarantee Operations
Guarantee commitments as of June 30, 2014 increased to ?55,393 billion from ?53,696 billion as of December 31, 2013. Guarantees we had
confirmed as of June 30, 2014 increased to ?43,456 billion from ?41,587 billion as of December 31, 2013.
For further information regarding our guarantee and letter of credit operations, see "Notes to Separate Financial Statements of June 30, 2014
and 2013--Note 36".
Description of Assets and Liabilities
Total Credit Exposure
The following table sets out our Credit Exposure as of June 30, 2014, categorized by type of exposure extended:

June 30, 2014

(billions of Won, except for percentages)

A
Loans in Won

?
14,724

15%
B

Loans in Foreign Currencies

35,049

36
C

Loans (A+B)

49,773

52
D
Other Loans

1,352

1
E

Call Loans and Inter-bank Loans in Foreign Currency

3,154

3
F

Loan Credits (C+D+E)

54,280

56
G
Allowances for Possible Loan Losses

(1,418)

(1)
H
Loan Credits including PVD (F-G)

52,862

55
I

Guarantees

43,456

45
J

Credit Exposure (H+I)

?
96,318

100%
Loan Credits by Geographic Area
The following table sets out the total amount of our outstanding Loan Credits (excluding call loans and inter-bank loans in foreign currency)
as of June 30, 2014, categorized by geographic area(1)(2):

As % of
June 30, 2014

June 30, 2014

Total

(billions of Won, except for percentages)

Asia

?
41,205

76%
Europe

5,128

9
America

4,762

9
Africa

3,185

6

Total

?
54,280

100.0%

(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

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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.
(2)
Excludes call loans, inter-bank loans in foreign currency, and loan value adjustments.
Source: Internal accounting records.
Individual Exposure
As of June 30, 2014, our largest Credit Exposure was to Daewoo Shipbuilding & Marine Engineering in the amount of ?6,694 billion.
As of June 30, 2014, our second and third largest Credit Exposures were to Samsung Heavy Industries in the amount of ?4,872 billion and to
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