Obligation Korea Development Institute 3.5% ( US500630BW73 ) en USD

Korea Development Institute

100 % ⇌

Coree du Sud

US500630BW73 ( en USD )

3.5% par an ( paiement semestriel )

22/08/2017 - Obligation échue

Prospectus brochure de l'obligation Korea Development Bank US500630BW73 en USD 3.5%, échue

200 000 USD

1 250 000 000 USD

500630BW7

A ( Qualité moyenne supérieure )

Aa3 ( Haute qualité )

La Korea Development Bank (KDB) est une banque publique sud-coréenne qui soutient le développement économique du pays en fournissant des financements et des services aux entreprises, notamment dans les secteurs stratégiques.

L'Obligation émise par Korea Development Institute ( Coree du Sud ) , en USD, avec le code ISIN US500630BW73, paye un coupon de 3.5% par an.
Le paiement des coupons est semestriel et la maturité de l'Obligation est le 22/08/2017

L'Obligation émise par Korea Development Institute ( Coree du Sud ) , en USD, avec le code ISIN US500630BW73, a été notée Aa3 ( Haute qualité ) par l'agence de notation Moody's.

L'Obligation émise par Korea Development Institute ( Coree du Sud ) , en USD, avec le code ISIN US500630BW73, a été notée A ( Qualité moyenne supérieure ) par l'agence de notation Standard & Poor's ( S&P ).

Form 424(b)(5)
http://www.sec.gov/Archives/edgar/data/869318/000119312512064243/...
424B5 1 d295615d424b5.htm FORM 424(B)(5)
Table of Contents

Filed Pursuant to Rule 424(b)(5)
Registration No. 333-156305
PROSPECTUS SUPPLEMENT
(To Prospectus Dated July 14, 2011)

US$750,000,000 3.500% Notes due 2017

Our US$750,000,000 aggregate principal amount of notes due 2017 (the "Notes") will bear interest at a rate of 3.500% per annum.
Interest on the Notes is payable semi-annually in arrears on February 22 and August 22 of each year, beginning on August 22, 2012. The
Notes will mature on August 22, 2017.
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 notes registered in the name of a nominee of The Depository Trust
Company, as depositary.
The payment of interest and the repayment of principal on the Notes will not be guaranteed by the Government (as defined herein).
However, under The Korea Development Bank Act, as amended ("the KDB Act"), the Government is obligated to guarantee the payment
of the principal of and interest on our foreign currency debt with an original maturity of one year or more at the time of issuance
(including the Notes offered hereby) outstanding as of the date of the initial sale of the Government's equity interest in KDB Financial
Group ("KDBFG"), subject to the authorization of the Government guarantee amount by the National Assembly of the Republic of Korea.
See "The Korea Development Bank--Overview" and "--Business--Government Support and Supervision" in the accompanying
prospectus.

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.

Per Note

Total

Public offering price

99.599%
US$746,992,500
Underwriting discount

0.300%
US$ 2,250,000
Proceeds to us (before deduction of expenses)

99.299%
US$744,742,500
In addition to the initial public offering price, you will have to pay for accrued interest, if any, from and including February 22,
2012.
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Form 424(b)(5)
http://www.sec.gov/Archives/edgar/data/869318/000119312512064243/...
Approval in-principle has been received from the Singapore Exchange Securities Trading Limited (the "SGX-ST") for the listing
and quotation of the Notes. The SGX-ST assumes no responsibility for the correctness of any statements made, opinions expressed or
reports contained in this prospectus supplement and the accompanying prospectus. Admission of the Notes to the Official List of, and
quotation of the Notes on, the SGX-ST is not to be taken as an indication of the merits of the issuer or the Notes. Currently, there is no
public market for the Notes.
We expect to make delivery of the Notes to investors through the book-entry facilities of The Depository Trust Company on or
about February 22, 2012.

Joint Bookrunners

BNP PARIBAS

Citigroup

Deutsche Bank

HSBC

J.P. Morgan

KDB Asia

The Royal Bank of Scotland

Prospectus Supplement Dated February 14, 2012
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Form 424(b)(5)
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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 to sell
these securities in any state or jurisdiction where the offer or sale is not permitted.

TABLE OF CONTENTS
Prospectus Supplement

Page
Summary of the Offering
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Use of Proceeds
S-8

Recent Developments
S-9

Description of the Notes
S-121
Clearance and Settlement
S-123
Taxation
S-126
Underwriting
S-127
Legal Matters
S-131
Official Statements and Documents
S-131
General Information
S-131
Prospectus

Page
Certain Defined Terms and Conventions
1

Use of Proceeds
2

The Korea Development Bank
3

Overview
3

Capitalization
6

Business
7

Selected Financial Statement Data
9

Operations
15

Sources of Funds
22

Debt
24

Overseas Operations
25

Property
25

Directors and Management; Employees
26

Tables and Supplementary Information
26

Financial Statements and the Auditors
30

The Republic of Korea
104
Land and History
104
Government and Politics
106
The Economy
109
Principal Sectors of the Economy
117
The Financial System
122
Monetary Policy
128
Balance of Payments and Foreign Trade
132
Government Finance
140
Debt
142
Tables and Supplementary Information
144
Description of the Securities
149
Description of Debt Securities
149
Description of Warrants
156

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Page
Terms Applicable to Debt Securities and Warrants
157
Description of Guarantees to be Issued by Us
158
Description of Guarantees to be Issued by The Republic of Korea
158
Limitations on Issuance of Bearer Debt Securities and Bearer Warrants
160
Taxation
161
Korean Taxation
161
United States Tax Considerations
162
Plan of Distribution
169
Legal Matters
170
Authorized Representatives in the United States
170
Official Statements and Documents
170
Experts
170
Forward-Looking Statements
170
Further Information
172

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Form 424(b)(5)
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Certain Defined Terms
All references to "we" or "us" mean The Korea Development Bank. 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. Terms used but
not defined in this prospectus supplement shall have the same meanings given to them in the accompanying prospectus.
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 2011, we prepared our financial statements in accordance with generally accepted accounting principles in Korea
("Korean GAAP" or "K-GAAP"). Our non-consolidated financial information as of and for the years ended December 31, 2009 and
2010 appearing in the accompanying prospectus was prepared in accordance with Korean GAAP. Commencing in 2011, 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, 2010, June 30, 2011 and September 30, 2011 and for the six months ended
June 30, 2010 and 2011 and nine months ended September 30, 2010 and 2011 included in this prospectus supplement has been prepared
in accordance with Korean IFRS, which differs in certain significant respects from Korean GAAP. As a result, our interim separate
K-IFRS financial statements included in this prospectus supplement are not comparable with our non-consolidated K-GAAP financial
statements included in the accompanying prospectus. Both our interim non-consolidated K-GAAP financial statements and our interim
separate K-IFRS financial statements have not been audited. Note 48 of the notes to our interim separate financial statements as of
December 31, 2010 and June 30, 2011 and for the six months ended June 30, 2010 and 2011 included in this prospectus supplement
provides a description of the effects of the conversion from Korean GAAP to 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 prospectus dated July 14, 2011.
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. 333-156305, 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 SGX-ST assumes no responsibility for the correctness
of any statements made or opinions expressed or reports contained in this prospectus supplement and the accompanying prospectus.
Admission of the Notes to the Official List of, and the quotation of any Notes on, the SGX-ST is 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 should not be used
to make an offer, in any state or country which prohibits the offering.

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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. 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.

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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 3.500% notes due August 22, 2017.
The Notes will bear interest at a rate of 3.500% per annum, payable semi-annually in arrears on February 22 and August 22,
beginning on August 22, 2012. Interest on the Notes will accrue from February 22, 2012 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.
The payment of interest and the repayment of principal on the Notes will not be guaranteed by the Government. However, under
the KDB Act, the Government is obligated to guarantee the payment of the principal of and interest on our foreign currency debt with
an original maturity of one year or more at the time of issuance (including the Notes offered hereby) outstanding as of the date of the
initial sale of the Government's equity interest in KDBFG, subject to the authorization of the Government guarantee amount by the
National Assembly of the Republic of Korea. See "The Korea Development Bank--Overview" and "--Business--Government
Support and Supervision" in the accompanying prospectus.
We do not have any right to redeem the Notes prior to maturity.
Listing
Approval in-principle has 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. The Notes will be traded on the SGX-ST in a minimum board lot size of US$200,000 for so
long as the Notes are listed on the SGX-ST and the rules of the SGX-ST so require.
Form and Settlement
We will issue the Notes in the form of one or more fully registered global notes, registered in the name of a nominee of DTC, as
depositary. 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."

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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 February 22, 2012, which will be the
fifth business day following the date of this prospectus supplement, referred to as "T+5." You should note that initial trading of the
Notes may be affected by the T+5 settlement. See "Underwriting--Delivery of the Notes."
Underwriting
KDB Asia Limited, one of the underwriters, is our affiliate and has agreed to offer and sell the Notes only outside the United
States to non-U.S. persons. See "Underwriting--Relationship with the Underwriters."

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USE OF PROCEEDS
The net proceeds from the issue of the Notes, after deducting the underwriting discount but not estimated expenses, will be
US$744,742,500. 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.

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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 July 14, 2011. 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 KOREA DEVELOPMENT BANK
Unless specified otherwise, the information provided below is stated on a separate basis in accordance with Korean IFRS.
Overview
As of June 30, 2011, we had (Won)74,792.8 billion of loans outstanding (including loans for facility development, loans for
working capital, inter-bank loans, private loans, off-shore loan receivables, loans borrowed from overseas financial institutions, bills
bought in foreign currencies, advance payments on acceptances and guarantees and other loans without adjusting for allowance for
possible loan losses, present value discounts and deferred loan fees), total assets of (Won)122,786.8 billion and total equity of
(Won)17,368.0 billion, as compared to (Won)72,057.4 billion of loans outstanding, (Won)113,949.9 billion of total assets and
(Won)16,733.0 billion of total equity as of December 31, 2010. For the six months ended June 30, 2011, we recorded interest income of
(Won)2,203.5 billion, interest expense of (Won)1,403.1 billion and net income of (Won)1,040.9 billion, as compared to (Won)2,307.8
billion of interest income, (Won)1,452.6 billion of interest expense and (Won)411.0 billion of net income for the six months ended
June 30, 2010.
On January 31, 2012, the Government took three Government-owned financial institutions (including us) off the list of public
institutions to grant them more autonomy in such areas as budgeting and human resources and to facilitate their privatization. Although the
Government has previously announced plans to privatize us, the specific timing and procedure for our privatization have not yet been
announced.
Capitalization
As of September 30, 2011, our authorized capital was (Won)15,000 billion and capitalization was as follows:

September 30, 2011(1)
(billions of won)

(unaudited)

Long-term debt(2)(3):

Won currency borrowings

4,783.1

Foreign currency borrowings

3,728.2

Industrial finance bonds

44,482.3

Total long-term debt

52,993.6

Capital:

Issued capital

9,251.9

Capital surplus

44.4

Capital adjustments

--
Retained earnings(4)

7,457.0

Accumulated other comprehensive income

503.1

Total capital

17,256.4

Total capitalization

70,250.0

(1) Except as disclosed in this prospectus supplement, there has been no material change in our capitalization since September 30,
2011.

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