Exhibit 99.1

WOORI FINANCE HOLDINGS CO., LTD.

CONSOLIDATED FINANCIAL STATEMENTS

FOR THE SIX MONTHS ENDED JUNE 30, 2012 AND 2011

AND INDEPENDENT ACCOUNTANT’S REVIEW REPORT

Independent Accountants’ Review Report

English Translation of a Report Originally Issued in Korean

To the Shareholders and the Board of Directors of

Woori Finance Holdings Co., Ltd.:

Report on the consolidated financial statements

We have reviewed the accompanying consolidated financial statements of Woori Finance Holdings Co., Ltd. and its subsidiaries (the “Group”). The financial statements consist of the consolidated statements of financial position as of June 30, 2012 and the related consolidated statements of comprehensive income for the three and six months ended June 30, 2012 and 2011 and the related consolidated statements of changes in stockholder’s equity and cash flows for the six months ended June 30, 2012 and 2011, and a summary of significant accounting policies and other explanatory information.

Management’s responsibility for the consolidated financial statements

The Group’s management is responsible for the preparation and fair presentation of the accompanying consolidated financial statements and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

Independent accountants’ responsibility

Our responsibility is to express a conclusion on the accompanying consolidated financial statements based on our review.

We conducted our reviews in accordance with standards for review of interim financial statements in the Republic of Korea. A review is limited primarily to inquiries of company personnel and analytical procedures applied to financial data, and this provides less assurance than an audit. We have not performed an audit and, accordingly, we do not express an audit opinion.

Review conclusion

Based on our reviews, nothing has come to our attention that causes us to believe that the accompanying consolidated financial statements of the Group are not presented fairly, in all material respects, in accordance with K-IFRS 1034, Interim Financial Reporting.

Others

We have previously audited, in accordance with auditing standards generally accepted in the Republic of Korea, the consolidated statement of financial position of the Group as of December 31, 2011 and the related consolidated statement of comprehensive income, changes in equity and cash flows for the year then ended (not presented herein) and in our report dated March 21, 2012, we expressed an unqualified opinion on those consolidated financial statements. The accompanying statement of financial position as of December 31, 2011, which is comparatively presented in the accompanying consolidated financial statement, does not differ in material respects from such audited consolidated statement of financial position.

August 23, 2012

Notice to Readers

This report is effective as of August 23, 2012, the accountants’ review report date. Certain subsequent events or circumstances may have occurred between this review report date and the time the report is read. Such events or circumstances could significantly affect the accompanying financial consolidated statements and may result in modifications to the accountants’ review report.

WOORI FINANCE HOLDINGS CO., LTD.

CONSOLIDATED FINANCIAL STATEMENTS

FOR THE SIX MONTHS ENDED JUNE 30, 2012 AND 2011

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

Pal Seung Lee

Chairman and Chief Executive Officer

WOORI FINANCE HOLDINGS CO., LTD. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

AS OF JUNE 30, 2012 AND DECEMBER 31, 2011

	June 30, 2012		December 31, 2011
	(Korean Won in millions)
ASSETS
Cash and cash equivalents (Note 2)		5,480,860		6,417,123
Financial assets at fair value through profit or loss (Notes 4,6,7,11,17,25 and 26)		25,961,761		25,600,231
Available-for-sale financial assets (Notes 4,8,11,17 and 44)		19,019,521		19,671,924
Held-to-maturity financial assets (Notes 4,9,11 and 17)		19,059,506		20,036,128
Loans and receivables (Notes 4,6,10,11,17,31,43 and 44)		243,395,626		235,159,956
Investments in jointly controlled entities and associates (Note 12)		918,289		928,233
Investment properties (Notes 13 and 16)		499,942		498,999
Premises and equipment (Notes 14,16 and 17)		3,166,232		3,134,472
Intangible assets and goodwill (Note 15)		426,202		447,891
Current tax assets (Note 40)		22,362		56,570
Deferred tax assets (Note 40)		51,401		79,980
Derivative assets (Notes 4,11 and 25)		318,745		326,840
Assets held for sale (Note 16)		65,463		56,243
Other assets (Notes 18 and 44)		321,496		377,059
Total assets		318,707,406		312,791,649
LIABILITIES
Financial liabilities at fair value through profit or loss (Notes 4,11,19,25 and 26)		11,227,342		9,621,546
Deposits due to customers (Notes 4,11,20 and 44)		203,563,078		195,930,482
Borrowings (Notes 4,11 and 21)		33,672,120		34,666,709
Debentures (Notes 4,11 and 21)		28,664,705		29,265,833
Provision (Notes 22,42 and 44)		1,072,280		892,308
Retirement benefit obligation (Note 23)		164,043		119,704
Current tax liabilities (Note 40)		151,640		274,257
Deferred tax liabilities (Note 40)		131,277		260,431
Derivative liabilities (Notes 4,11 and 25)		34,710		33,493
Other financial liabilities (Notes 4,11,24,43 and 44)		17,094,856		19,083,709
Other liabilities (Notes 24 and 44)		483,445		569,783
Total liabilities		296,259,496		290,718,255
EQUITY
Owners’ equity:		18,155,983		17,523,998
Capital stock (Note 27)		4,030,077		4,030,077
Hybrid securities (Note 28)		498,407		309,010
Capital surplus (Note 27)		174,587		175,768
Other equity (Note 29)		306,992		586,421
Retained earnings (Notes 30 and 31)		13,145,920		12,422,722
Non-controlling interests		4,291,927		4,549,396
Total equity		22,447,910		22,073,394
Total liabilities and equity		318,707,406		312,791,649

See accompanying notes to consolidated financial statements.

WOORI FINANCE HOLDINGS CO., LTD. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

FOR THE THREE MONTHS AND THE SIX MONTHS ENDED JUNE 30, 2012 AND 2011

	2012						2011
	Three months ended June  30			Six months ended June 30			Three months ended June  30			Six months ended June 30
	(Korean Won in millions, except per share data)
Net interest income (Notes 33 and 44)		1,837,358			3,699,430			1,806,258			3,539,588
Interest income		3,812,478			7,656,801			3,742,177			7,299,679
Interest expense		1,975,120			3,957,371			1,935,919			3,760,091
Net fees and commissions income (Notes 34 and 44)		248,159			521,498			310,390			623,707
Fees and commissions income		407,921			835,459			464,902			897,108
Fees and commissions expense		159,762			313,961			154,512			273,401
Dividends (Note 35)		38,917			109,862			55,964			144,821
Gain (loss) on financial assets at fair value through profit or loss (Note 36)		(578	)		(23,742	)		39,208			91,178
Gain on available-for-sale financial assets (Note 37)		265,925			541,937			994,992			1,009,415
Impairment loss on credit loss (Note 38)		924,926			1,358,652			782,305			1,234,865
Other net operating expenses (Notes 39 and 44)		(1,058,848	)		(2,162,185	)		(1,211,450	)		(2,158,110	)
Operating income		406,007			1,328,148			1,213,057			2,015,734
Share of profits of jointly controlled entities and associates (Note 12)		23,082			41,767			(19,942	)		25,905
Net income before income tax expense		429,089			1,369,915			1,193,115			2,041,639
Income tax expense (Note 40)		81,530			307,991			350,817			564,032
Net income		347,559			1,061,924			842,298			1,477,607
Net income attributable to owners		292,609			937,634			792,295			1,294,912
Net income attributable to non-controlling interests		54,950			124,290			50,003			182,695
Other comprehensive income (loss), net of tax
Loss on available-for-sale financial assets		(159,957	)		(293,072	)		(830,581	)		(349,795	)
Share of other comprehensive gain (loss) of jointly controlled entities and associates		32,921			45,329			(5,131	)		(25,804	)
Gain (loss) on overseas business translation		14,082			(16,342	)		(30,526	)		(58,687	)
Gain (loss) on valuation of cashflow hedge		(3,588	)		3,504			9,462			14,897
		(116,542	)		(260,581	)		(856,776	)		(419,389	)
Total comprehensive income (loss)
Comprehensive income (loss) attributable to owners		137,627			652,635			(60,289	)		872,924
Comprehensive income attributable to non-controlling interests		93,390			148,708			45,811			185,294
		231,017			801,343			(14,478	)		1,058,218
Basic and diluted earnings per share (Note 41)		354			1,148			983			1,607

See accompanying notes to consolidated financial statements.

WOORI FINANCE HOLDINGS CO., LTD. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

FOR THE SIX MONTHS ENDED JUNE 30, 2012 AND 2011

	Common stock		Hybrid securities		Capital surplus			Other equity			Retained earnings			Controlling interests			Non-controlling interests			Total equity
	(Korean Won in millions)
January 1, 2011		4,030,077		—		180,105			1,002,019			10,489,339			15,701,540			4,563,214			20,264,754
Net income		—		—		—			—			1,294,912			1,294,912			182,695			1,477,607
Dividends		—		—		—			—			(201,503	)		(201,503	)		(36,687	)		(238,190	)
Changes in treasury stocks of consolidated subsidiaries		—		—		(109	)		—			—			(109	)		(17,187	)		(17,296	)
Changes in other capital surplus		—		—		(281	)		—			—			(281	)		—			(281	)
Valuation of available-for-sale financial assets		—		—		—			(356,521	)		—			(356,521	)		6,726			(349,795	)
Changes in equity of jointly controlled entities and associates		—		—		—			(25,384	)		—			(25,384	)		(420	)		(25,804	)
Foreign currency translation		—		—		—			(48,935	)		—			(48,935	)		(9,752	)		(58,687	)
Cashflow hedge		—		—		—			8,852			—			8,852			6,045			14,897
Changes in other equity		—		—		—			(9,434	)		—			(9,434	)		985			(8,449	)
Changes in equity of non-controlling interests		—		—		—			—			—			—			(7,276	)		(7,276	)
Dividends to hybrid securities		—		—		—			—			—			—			(80,868	)		(80,868	)
Repayment of hybrid securities		—		—		—			—			—			—			(299,999	)		(299,999	)
Others		—		—		—			—			6,500			6,500			2,865			9,365
June 30, 2011		4,030,077		—		179,715			570,597			11,589,248			16,369,637			4,310,341			20,679,978
January 1, 2012		4,030,077		309,010		175,768			586,421			12,422,722			17,523,998			4,549,396			22,073,394
Net income		—		—		—			—			937,634			937,634			124,290			1,061,924
Dividends		—		—		—			—			(201,503	)		(201,503	)		(40,842	)		(242,345	)
Changes in capital surplus of consolidated subsidiaries		—		—		(1,181	)		—			—			(1,181	)		(220	)		(1,401	)
Valuation of available-for-sale financial assets		—		—		—			(280,024	)		—			(280,024	)		(13,048	)		(293,072	)
Changes in equity of jointly controlled entities and associates		—		—		—			(4,339	)		—			(4,339	)		49,668			45,329
Foreign currency translation		—		—		—			(3,396	)		—			(3,396	)		(12,946	)		(16,342	)
Cashflow hedge		—		—		—			2,760			—			2,760			744			3,504
Changes in other equity		—		—		—			5,229			—			5,229			3,106			8,335
Amortization of discount on stock issue of consolidated subsidiaries		—		—		—			341			(341	)		—			—			—
Changes in equity of non-controlling interests		—		—		—			—			—			—			(299,803	)		(299,803	)
Dividends to hybrid securities		—		—		—			—			(12,592	)		(12,592	)		(68,418	)		(81,010	)
Issue of hybrid securities		—		189,397		—			—			—			189,397			—			189,397
June 30, 2012		4,030,077		498,407		174,587			306,992			13,145,920			18,155,983			4,291,927			22,447,910

See accompanying notes to consolidated financial statements.

WOORI FINANCE HOLDINGS CO., LTD. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE SIX MONTHS ENDED JUNE 30, 2012 AND 2011

	2012			2011
	(Korean Won in millions)
Cash flows from operating activities:
Net income		1,061,924			1,477,607
Adjustments:
Income tax expense		307,991			564,032
Interest income		(7,656,801	)		(7,299,679	)
Interest expense		3,957,371			3,760,091
Dividend income		(109,862	)		(144,821	)
Impairment loss on credit loss		1,358,652			1,234,865
Loss on valuation of financial instruments at fair value through profit or loss		6,438			—
Loss on valuation of associates investments		1,908			7,300
Loss on foreign exchange translation		13,762			20,744
Loss on disposal of investments in jointly controlled entities and associates		18,079			—
Loss on disposal of premises and equipment and other assets		1,670			4,154
Impairment loss of premises and equipment and other assets		7,579			12,021
Loss on transaction of derivatives		23,228			5,009
Loss on valuation of derivatives		10,427			15,049
Loss on fair value hedged items		29,616			23,844
Provisions		21,527			10,464
Retirement benefits		110,107			78,598
Depreciation and amortization		145,615			134,506
Gain on valuation of financial instruments at fair value through profit or loss		—			(27,434	)
Gain on available-for-sale financial assets		(541,937	)		(1,009,415	)
Gain on valuation of associates investments		(43,675	)		(33,205	)
Gain on foreign exchange translation		(7,958	)		(17,628	)
Gain on disposal of investments in jointly controlled entities and associates		(24,702	)		(33,790	)
Gain on disposal of premises and equipment and other assets		(1,650	)		(7,233	)
Reversal of impairment loss of premises and equipment and other assets		(1,929	)		(3,528	)
Gain on transaction of derivatives		(381	)		(233	)
Gain on valuation of derivatives		(33,306	)		(18,727	)
Gain on fair value hedged items		(28,271	)		(8,247	)
Reversal of provisions		(43,656	)		(17,477	)
Changes in operating assets and liabilities:
Decrease (increase) in financial instruments at fair value through profit or loss		1,237,825			(308,763	)
Increase in loans and receivables		(9,313,170	)		(15,628,752	)
Decrease in other assets		19			41,315
Increase in deposits due to customers		7,631,499			4,127,413
Decrease in provision for guarantee and unused commitment		(56,833	)		(11,541	)
Decrease in retirement benefit obligation		(65,768	)		(19,299	)
Increase (decrease) in other financial liabilities		(2,130,922	)		6,258,609
Increase (decrease) in other liabilities		(63,051	)		135,637
Cash received from (paid for) operating activities:
Interest income received		7,638,560			7,228,658
Interest expense paid		(4,100,298	)		(3,523,543	)
Dividends received		95,991			142,805
Income tax paid		(416,592	)		(297,970	)
Net cash used in operating activities		(960,974	)		(3,128,564	)

(Continued)

WOORI FINANCE HOLDINGS CO., LTD. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS (CONTINUED)

FOR THE SIX MONTHS ENDED JUNE 30, 2012 AND 2011

	2012			2011
	(Korean Won in millions)
Cash flows from investing activities:
Disposal of available-for-sale financial assets		9,922,908			11,495,073
Redemption of held-to-maturity financial assets		6,478,512			5,385,503
Disposal of investments in jointly controlled entities and associates		122,496			82,311
Disposal of investment properties		—			130,486
Disposal of premises and equipment		11,156			34,595
Disposal of intangible assets		1,535			4,167
Disposal of assets held for sale		5,814			41,741
Acquisition of available-for-sale financial assets		(9,072,711	)		(7,132,030	)
Acquisition of held-to-maturity financial assets		(5,501,847	)		(6,629,923	)
Acquisition of investment in jointly controlled entities and associates		(5,400	)		(161,715	)
Acquisition of investment properties		(2,320	)		(4,662	)
Acquisition of premises and equipment		(135,345	)		(106,753	)
Acquisition of intangible assets		(34,085	)		(233,908	)
Net cash provided by investing activities		1,790,713			2,904,885
Cash flows from financing activities:
Increase in borrowings		34,742,441			42,077,538
Issuance of debentures		5,132,791			4,197,028
Issuance of hybrid securities		189,397			—
Net increase in hedging derivatives		12,883			—
Payment of borrowings		(35,735,936	)		(41,925,608	)
Payment of debentures		(5,709,733	)		(3,423,390	)
Dividends paid		(201,503	)		(201,503	)
Dividends paid on hybrid securities		(11,930	)		—
Net decrease in hedging derivatives		—			(5,399	)
Cash outflows provided by other financing activities		—			(14,418	)
Net decrease in non-controlling interests		(123,630	)		(435,568	)
Net cash provided by (used in) financing activities		(1,705,220	)		268,680
Net increase (decrease) in cash and cash equivalents		(875,481	)		45,001
Cash and cash equivalents, beginning of the period		6,417,123			4,871,109
Effects of exchange rate changes on cash and cash equivalents		(60,782	)		57,515
Cash and cash equivalents, end of the period		5,480,860			4,973,625

See accompanying notes to consolidated financial statements.

WOORI FINANCE HOLDINGS CO., LTD. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

FOR THE SIX MONTHS ENDED JUNE 30, 2012 AND 2011

1. General

(1) Woori Finance Holdings Co., Ltd.

Woori Finance Holdings Co., Ltd. (hereinafter referred to “Woori Finance Holdings” or the “Company”) was incorporated on March 27, 2001, to manage the following five financial institutions: Woori Bank, Kyongnam Bank, Kwangju Bank, Peace Bank of Korea (merged into Woori Bank on March 31, 2004) and Woori Investment Bank (merged into Woori Bank on July 31, 2003), whose shares were contributed to the Company by the Korea Deposit Insurance Corporation (the “KDIC”) in accordance with the provisions of the Financial Holding Company Act. As a result of its functional restructuring, the Company owns 10 subsidiaries including Woori Bank and 139 second-tier subsidiaries including Woori Credit Information Co., Ltd. as of June 30, 2012.

Upon incorporation, the Company’s stock amounted to 3,637,293 million Won, consisting of 727,458,609 common shares (5,000 Won per share). As a result of several capital increases, exercise of warrants and conversion rights since incorporation, the Company’s stock amounted to 4,030,077 million Won, consisting of 806,015,340 common shares issued as of June 30, 2012. KDIC owns 459,198,609 shares out of total outstanding shares representing 56.97% ownership of the Company.

On June 24, 2002, the Company listed its common shares on the Korea Exchange. On September 29, 2003, the Company registered with the Securities and Exchange Commission in the United States of America and listed its American Depositary Shares on the New York Stock Exchange.

(2) The financial statements for the Company and its subsidiaries (the “Group”) includes the following subsidiaries (Unit: Korean Won in millions, USD in thousands, EUR in thousands, VND in millions, IDR in millions, RUB in millions):

				June 30, 2012				December 31, 2011
Subsidiaries	Capital		Main business	Number of shares owned		Percentage of owner- ship (%)		Number of shares owned		Percentage of owner- ship (%)
Woori Finance Holdings:
Woori Bank		3,829,800	Banking		765,956,580		100.0		765,956,580		100.0
Kyongnam Bank		290,300	”		58,050,037		100.0		58,050,037		100.0
Kwangju Bank		247,100	”		49,413,851		100.0		49,413,851		100.0
Woori FIS Co., Ltd.		4,500	System software development& maintenance		900,000		100.0		900,000		100.0
Woori F&I		70,000	Finance		14,000,000		100.0		14,000,000		100.0
Woori Investment & Securities (*1)		1,120,500	Securities investment		75,426,214		37.9		75,426,214		37.9
Woori Asset Management		33,300	Finance		6,662,000		100.0		6,662,000		100.0
Woori Private Equity Co., Ltd.		30,000	”		6,000,000		100.0		6,000,000		100.0
Woori Financial		84,800	”		8,909,439		52.5		8,909,439		52.5
Woori FG Savings Bank		31,600	”		6,320,000		100.0		6,320,000		100.0
Woori Bank:
Woori Credit Information Co., Ltd.		5,000	Finance		1,008,000		100.0		1,008,000		100.0
Woori America Bank (*10)		USD 122,500	Banking		24,500,000		100.0		24,500,000		100.0
Woori Global Market Asia Limited (*10)		USD 50,000	”		39,000,000		100.0		39,000,000		100.0
Woori Bank (China) Limited (*10)		USD 308,810	”		—		100.0		—		100.0
ZAO Woori Bank (*10)		RUB 500	”		19,999,999		100.0		19,999,999		100.0
PT. Bank Woori Indonesia (*10)		IDR 170,000	”		1,618		95.2		1,618		95.2
Korea BTL Infrastructure Fund (*4)		524,100	Finance		104,823,493		100.0		93,393,568		100.0

				June 30, 2012				December 31, 2011
Subsidiaries	Capital		Main business	Number of shares owned		Percentage of owner- ship (%)		Number of shares owned		Percentage of owner- ship (%)
Woori Fund Service Co., Ltd.		3,000	Finance		600,000		100.0		600,000		100.0
Kumho Trust 1st Co., Ltd. (*2)		50	Asset securitization		—		0.0		—		0.0
Asiana Saigon Inc. (*2)		10	”		—		0.0		—		0.0
An-Dong Raja 1st Co., Ltd. (*2)		50	”		—		0.0		—		0.0
Consus 8th Co., LLC (*2)		10	”		—		0.0		—		0.0
KAMCO Value Recreation 1st Securitization Specialty Co., Ltd. (*2)		10	”		150		15.0		150		15.0
Woori IB Global Bond Co., Ltd. (*2)		50	”		—		0.0		—		0.0
IB Global 1st Inc. (*2)		10	”		—		0.0		—		0.0
Real DW Second Co., Ltd. (*2)		10	”		—		0.0		—		0.0
Hermes STX Co., Ltd. (*2)		10	”		—		0.0		—		0.0
BWL First Co., LLC (*2)		10	”		—		0.0		—		0.0
Woori Poongsan Co., Ltd. (*2)		10	”		—		0.0		—		0.0
Ocean Sand Co., Ltd. (*2)		10	”		—		0.0		—		0.0
Kyongnam Bank:
Consus 6th Co., LLC (*2)		10	”		—		0.0		—		0.0
Kwangju Bank:
Euro Quanto Second Inc. (*2)		10	”		—		0.0		—		0.0
Hybrid 1st Specialty Inc. (*2)		10	”		—		0.0		—		0.0
KAMCO Value Recreation 2nd Securitization Specialty Co., Ltd. (*2)		10	”		150		15.0		150		15.0
Woori F&I:
Woori AMC Co., Ltd.		4,000	Asset management		800,000		100.0		800,000		100.0
Woori F&I Seventh Asset Securitization Specialty		500	Asset securitization		105,300		100.0		105,300		100.0
Woori F&I Eighth Asset Securitization Specialty		100	”		19,600		100.0		19,600		100.0
Woori F&I Tenth Asset Securitization Specialty (*5)		60	”		12,020		100.0		48,020		100.0
Woori F&I Eleventh Asset Securitization Specialty (*5)		60	”		11,060		100.0		61,060		100.0
Woori F&I Thirteenth Asset Securitization Specialty (*5)		400	”		74,577		94.6		127,536		94.6
Woori SB Tenth Asset Securitization Specialty		4,100	”		410,711		50.0+ 1share		410,711		50.0+ 1share
Woori F&I Sixteenth Asset Securitization Specialty		500	”		103,620		100.0		103,620		100.0
Woori EA Third Asset Securitization Specialty (*5)		1,300	”		185,808		70.0		227,808		70.0
Woori EA Fourth Asset Securitization Specialty		1,300	”		185,920		70.0		185,920		70.0
Woori EA Fifth Asset Securitization Specialty (*5)		600	”		77,000		70.0		112,000		70.0
Woori F&I Seventeenth Asset Securitization Specialty (*5)		70	”		13,000		100.0		15,500		100.0
WR Loan Inc.		10	”		2,000		100.0		2,000		100.0
Woori EA Eighth Asset Securitization Specialty		1,800	”		18,105		51.0		18,105		51.0
WR Investment America, LLC (*10)		USD 25,000	Administration of NPL		25,000,000		100.0		25,000,000		100.0
Woori F&I Eighteenth Asset Securitization Specialty (*5)		30	Asset securitization		5,100		100.0		5,600		100.0
Woori EA Tenth Asset Securitization Specialty (*5)		50	”		5,406		51.0		5,610		51.0
Woori F&I Nineteenth Asset Securitization Specialty (*5)		20	”		3,400		100.0		3,600		100.0
Woori F&I Twentieth Asset Securitization Specialty		60	”		7,200		60.0		7,200		60.0

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				June 30, 2012				December 31, 2011
Subsidiaries	Capital		Main business	Number of shares owned		Percentage of owner- ship (%)		Number of shares owned		Percentage of owner- ship (%)
Woori F&I 21st Asset Securitization Specialty		30	”		6,400		100.0		6,400		100.0
Woori F&I 22nd Asset Securitization Specialty		20	Asset securitization		4,200		60.0		4,200		60.0
Woori F&I 23rd Asset Securitization Specialty		60	”		12,800		100.0		12,800		100.0
Woori F&I 24th Asset Securitization Specialty		20	”		3,998		100.0		3,998		100.0
Woori F&I 25th Asset Securitization Specialty (*3)		30	”		5,000		100.0		—		—
Woori EA Twelfth Asset Securitization Specialty		200	”		26,600		70.0		26,600		70.0
Woori EA Thirteenth Asset Securitization Specialty		200	”		24,500		70.0		24,500		70.0
Woori EA Fourteenth Asset Securitization Specialty		100	”		16,800		70.0		16,800		70.0
Woori EA Fifteenth Asset Securitization Specialty (*3)		200	”		25,200		70.0		—		—
Woori F&I 26th Asset Securitization Specialty (*3)		20	”		4,100		100.0		—		—
Woori F&I 27th Asset Securitization Specialty (*3)		30	”		5,100		100.0		—		—
Woori F&I 28th Asset Securitization Specialty (*3)		20	”		3,698		100.0		—		—
Woori Investment & Securities:
Woori Futures Co., Ltd.		25,000	Futures trading		5,000,000		100.0		5,000,000		100.0
Woori Investment Asia PTE, Ltd. (*10)		USD 50,000	Securities investments		50,000,000		100.0		50,000,000		100.0
Woori Absolute Global Opportunity Fund (*5)(*9)(*10)		USD 0.08	”		7,920		100.0		44,700		100.0
LG Investments Holding B.V. (*10)		EUR 16,424	”		1,642,398,242		100.0		1,642,398,242		100.0
Woori Investment Securities (H.K.) Ltd. (*4)(*10)		USD 72,500	Securities business		72,500,000		100.0		22,500,000		100.0
Connacht Capital Market Investment (*10)		USD 150	Securities investments		15,000,000		100.0		15,000,000		100.0
Woori Investment Securities Int’l Ltd. (*10)		USD 5,788	”		5,788,000		100.0		5,788,000		100.0
Woori Investment Securities America, Inc. (*10)		USD 0.003	”		300		100.0		300		100.0
Woori CBV Securities Corporation (*1)(*9)(*10)		VND 135,000	Securities business		6,615,000		49.0		6,615,000		49.0
MARS First Private Equity Fund (*5)		—	Other financial business		—		52.9		18,000,000		52.9
MARS Second Private Equity Fund (*1)		282,000	”		25,066,666,670		8.9		25,066,666,670		8.9
Woori Absolute Partners PTE, Ltd. (*10)		USD 5,000	Securities investments		5,000,000		100.0		5,000,000		100.0
Woori Korindo Securities Indonesia (*10)		IDR 105,020	”		150,000,000		60.0		150,000,000		60.0
Woori Absolute Return Investment Strategies Fund (*9)(*10)		USD 0.3	”		30,000		100.0		30,000		100.0
KoFC Woori Growth Champ Private Equity Fund (*4)(*7)		58,000	Other financial business		15,819		27.3		15,351		27.3
Woori Investment advisory Co., Ltd.(Beijing) (*6)(*10)		USD 3,209	Securities investments		—		95.5		—		100.0
KAMCO Value Recreation 9th Securitization Specialty Co., Ltd. (*2)		10	Asset securitization		150		15.0		150		15.0
Woori Giant First Co., Ltd.		30,000	”		3,000,000		100.0		3,000,000		100.0
Woori Private Equity Co. , Ltd.:
Woori Private Equity Fund		231,600	Private Fund		136,122		61.0		136,122		61.0
Woori EL Co., Ltd.		10	”		1,010		100.0		1,010		100.0
MARS First:
MARS INS First, Ltd. (*5)		4	”		800		100.0		4,000		100.0

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				June 30, 2012				December 31, 2011
Subsidiaries	Capital		Main business	Number of shares owned		Percentage of owner- ship (%)		Number of shares owned		Percentage of owner- ship (%)
Woori Private Equity Fund:
Kumho Investment Bank (*1)		90,000	Finance		74,550,000		41.4		74,550,000		41.4
Kumho Investment Bank:
HUB 1st Co., Ltd. (*2)		50	Asset securitization		—		0.0		—		0.0
HUB 2nd Co., Ltd. (*2)		10	”		—		0.0		—		0.0
HUB 3rd Co., Ltd. (*2)		10	”		—		0.0		—		0.0
Two Eagles KIB LLC (*9)(*10)		100	Other service business		—		100.0		—		100.0
Woori, Kyongnam, Kwangju Bank:
TY Second Asset Securitization Specialty (*8)		50	Asset securitization		—		—		—		0.0
Woori Private Equity Co., Ltd. and Two Eagles KIB LLC:
Two Eagles LLC (*10)		200	”		—		55.0		—		55.0
Woori Private Equity Fund and My Asset Manhattan Private REIT 1st:
Sahn Eagles LLC (*10)		USD 80,000	Other financial business		52,523,601		65.6		52,523,601		65.6
Woori, Kyongnam, Kwangju Bank, Woori Investment & Securities and Kumho Investment Bank:
Woori Partner Plus Private Equity Securities 4th and 42 beneficiary certificates for the rest		—	Beneficiary certificates		—		—		—		—

(*1) As the Group has controlling power over the entity so as to obtain benefits, the entity is included in the consolidation.

(*2) Classified as a special purpose entity (“SPE”) and included in consolidation scope under Standing Interpretations Committee (“SIC”) -12 Consolidation—Special Purpose Entities, considering the activities of the SPE, decision-making powers, benefits and risks. In addition, principal and interest guaranteed trusts of Woori Bank, Kyongnam Bank, and Kwangju Bank are included in consolidation under SIC-12 Consolidation—Special Purpose Entities.

(*3) During the six months ended June 30, 2012, Woori F&I acquired each 100%, 100%, 100%, 100% and 70% ownership interest of Woori F&I 25th Asset Securitization Specialty, Woori F&I 26th Asset Securitization Specialty, Woori F&I 27th Asset Securitization Specialty, Woori F&I 28th Asset Securitization Specialty, and Woori EA 15th Asset Securitization Specialty, respectively.

(*4) The number of holding shares increased due to the paid-in capital increase during the six months ended June 30, 2012.

(*5) The number of holding shares decreased due to the paid-in capital decrease during the six months ended June 30, 2012.

(*6) The Company’s ownership interest decreased due to disproportionate increase in paid-in capital for the six months ended June 30, 2012.

(*7) KoFC Woori Growth Champ Private Equity Fund was included in the scope of consolidation as Woori Investment & Securities has controlling power as the general partner of the fund.

(*8) Disposed during the six months ended June 30, 2012.

(*9) Two Eagles KIB LLC and Woori Absolute Global Opportunity Fund, Woori CBV Securities Corporation and Woori Absolute Return Investment Strategies Fund were consolidated to use financial information based on the financial statements as of March 31, 2012 and May 31, 2012, respectively. There is no significant effect due to transactions and events which has been occurred subsequent to March 31, 2012 and May 31, 2012, respectively.

(*10) All subsidiaries are located in Korea except for the following subsidiaries; 1) Woori America Bank, WR Investment America, LLC, Woori Investment Securities America, Inc., Two Eagles KIB LLC, Two Eagles LLC and Sahn Eagles LLC in America; 2) Woori Global Market Asia Limited , Woori Investment Securities (H.K.) Ltd. in Hong Kong; 3) Woori Bank (China) Limited, Woori Investment advisory Co. Ltd.(Beijing) in China; 4) ZAO Woori Bank in Russia; 5) PT. Bank Woori Indonesia, Woori Korindo Securities Indonesia in Indonesia; 6) Woori Investment Asia PTE. Ltd., Woori Absolute Partners PTE Ltd. in Singapore; 7) Woori Absolute Global Opportunity Fund, Woori Absolute Return Investment Strategies Fund in Cayman Island; 8) LG Investments Holding B.V. (Amsterdam) GG in Netherland; 9) Connacht Capital Market Investment in Malaysia; 10) Woori Investment Securities Int’l Ltd. in United kingdom; and 11) Woori CBV Securities Corporation in Vietnam.

- 4 -

(3) Summarized financial information before elimination of intercompany accounts of subsidiaries whose financial information prepared under IFRS for the Group’s consolidated financial statements are as follows (Unit: Korean Won in millions):

	June 30, 2012
	Assets		Liabilities		Operating revenue		Net income (loss) attributable  to owners
Woori Bank		241,386,385		223,282,469		11,009,908		812,804
Kyongnam Bank		28,086,463		26,194,475		907,337		104,849
Kwangju Bank		19,075,829		17,802,172		583,395		84,515
Woori FIS Co., Ltd.		287,301		263,457		154,200		(1,978	)
Woori F&I		1,525,627		1,265,048		81,958		25,340
Woori Investment & Securities		24,601,400		21,177,425		1,592,382		86,541
Woori Asset Management		78,051		14,379		16,596		825
Woori Private Equity Co., Ltd.		1,621,864		1,552,324		111,400		1,589
Woori Financial		3,330,904		3,047,695		170,642		27,039
Woori FG Savings Bank		614,843		540,153		31,012		(2,675	)

	December 31, 2011
	Assets		Liabilities		Operating revenue		Net income (loss) attributable  to owners
Woori Bank		242,472,162		224,346,022		28,455,535		2,068,544
Kyongnam Bank		25,353,427		23,555,666		1,719,453		195,647
Kwangju Bank		18,030,369		16,813,501		1,137,243		136,328
Woori FIS Co., Ltd.		264,215		238,393		287,856		(3,480	)
Woori F&I		1,371,031		1,114,343		172,100		43,145
Woori Investment & Securities		21,535,058		17,862,450		3,910,525		164,621
Woori Asset Management		80,020		17,174		32,111		1,462
Woori Private Equity Co., Ltd.		1,575,969		1,505,636		382,597		651
Woori Financial		3,161,794		2,889,741		334,453		51,702
Woori FG Savings Bank		603,400		526,035		55,320		(32,352	)

2. Significant Basis of Preparation and Accounting Policies

(1) Basis of presentation

The Group’s interim consolidated financial statements for the six months ended June 30, 2012 are prepared in accordance with K-IFRS 1034 Interim Financial Reporting. It is necessary to use the annual consolidated financial statements for the year ended December 31, 2011 for the understanding of the interim consolidated financial statements.

The accompanying financial statements are the Group’s consolidated financial statements in accordance with K-IFRS 1027 Consolidated and Separate Financial Statements.

Major accounting policies used for the preparation of the consolidated financial statements are stated below. Unless stated otherwise, the accounting policies have been applied consistently with the annual consolidated financial statements in order to prepare the consolidated financial statements for the six months ended June 30, 2012.

The Group has newly adopted the following new standards and interpretations that made changes in accounting policies.

- 5 -

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. Meanwhile, the amendments have no effect on both financial position as of June 30, 2012 and December 31, 2011 and net income for the six months ended June 30, 2012 and 2011.

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, regardless of the measurement method of book value of non-depreciable property and equipment, are presumed to be recovered through sale for the purposes of measuring deferred taxes. The Company’s adoption of the amendments did not have any impact on its consolidated financial statements for the six months ended June 30, 2011 and 2012.

Amendments to K-IFRS 2114 – Minimum Funding Requirements

Before the application of K-IFRS 2114, prepaid future minimum funding requirement contributions has not been recognized as an asset. The amendments permit the benefit of such prepayment to be recognized as an asset. The Company’s adoption of the amendments did not have any impact on its consolidated financial statements for the six months ended June 30, 2011 and 2012.

The Group has not applied the following new and revised IFRSs that have been issued but are not yet effective:

Amendments to K-IFRS 1001 – Presentation of Financial Statements

The amendments to K-IFRS 1001 relates to separate presentation of the items that would not be reclassified as net income subsequently and the items that would be reclassified as net income among the other comprehensive income items on the consolidated statements of comprehensive income, and presentation of the related tax that are allocated to those items proportionately in the case of presentation of the amount before tax. The amendments to K-IFRS 1001 are effective for annual periods beginning on or after July 1, 2012.

Amendments to K-IFRS 1019 – Employee Benefits

The amendments to K-IFRS 1019 relates to elimination of the ‘corridor approach’ permitted under the previous version of K-IFRS 1019. The amendments to K-IFRS 1019 are effective for annual periods beginning on or after January 1, 2013.

Enactment to 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. The amendments to K-IFRS 1113 are effective for annual periods beginning on or after January 1, 2013.

The Group anticipates that the amendments and enactments listed above may not have significant impact on the Group’s financial statements.

(2) Others

For the comparative purpose, the Group has reclassified the financial statements for the year ended December 31, 2011. However, the reclassifications have no effect on the Group’s net assets as of December 31, 2011 and net income for the six months ended June 30, 2011.

1) Reclassification of gain or loss on redemption of beneficiary certificates

The Group reclassified dividends from beneficiary certificates from interest income to dividends and gain or loss on disposal of beneficiary certificates from interest income to gain or loss on disposal of available-for-sale financial assets for the nine months ended September 30, 2011.

- 6 -

As a result, 88,276 million Won of net interest income decreased and 16,133 million Won of dividend income increased and 72,143 million Won of gain on available-for-sale financial assets increased for the six months ended June 30, 2011, respectively. There is no effect on net asset and net income of the Group for such reclassification.

2) Reclassification of cash and cash equivalents and deposits

The Group reclassified both unrestricted demand deposit and unrestricted deposit which has maturity within 3 months from acquisition, from deposits (loans and receivables) to cash and cash equivalents. As a result, deposits of 1,396,777 million Won, 1,648,957 million Won, and 2,119,799 million Won have decreased as of March 31, 2011, June 30, 2011, and September 30, 2011, respectively, and cash and cash equivalents of 1,396,777 million Won, 1,648,957 million Won, and 2,119,799 million Won have increased on the corresponding dates for each. There is no effect on net asset and net income of the Group due to such reclassification.

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 significant judgment which the management made about the application of the Group’s accounting policies and key sources of uncertainty in estimate do not differ from those used in preparing the financial statements for the year ended December 31, 2011.

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 permissible level of risks and manage such risks.

The Group’s risk management procedures have been established to improve the quality of assets for holding or investment purposes by making decisions as to how to avoid or mitigate risks through the identification of the source of the potential risks and their impact.

The Group has established an approach to manage the acceptable level of risks and reduce the excessive risks in financial instruments in order to maximize the profit given the risks present, for which the Group has implemented processes for risk identification, assessment, control, and monitoring and reporting. The risk is managed by the risk management department in accordance with the Group’s risk management policy. The Risk Management Committee makes decisions on the risk strategies such as avoidance of concentration on capital at risk and establishment of acceptable level of risk limit.

(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 Group’s credit risk exposure to a permissible degree and to optimize its 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.

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.

- 7 -

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.

2) Maximum exposure to credit risk

The Group’s maximum exposure to credit risk refers to net book value of financial assets net of allowances, which shows the uncertainties of maximum changes of net value of financial assets attributable to a particular risk without considering collateral and other credit enhancements obtained. However, the maximum exposure is the fair value amount (recorded on the books) for derivatives, maximum contractual obligation for payment guarantees and loan commitment for loan contracts.

The maximum exposure to credit risk is as follows (Unit: Korean Won in millions):

	June 30, 2012		December 31, 2011
Loans and receivables:
Korean treasury and government agencies		16,229,963		13,761,594
Banks		19,090,354		12,921,330
Corporates		108,934,983		110,204,743
Consumers		99,140,326		98,272,289
Sub-total		243,395,626		235,159,956
Financial assets at fair value through profit or loss (“FVTPL”):
Gold banking deposits		2,544		—
Debt securities held for trading		19,476,808		18,873,159
Designated at fair value through profit or loss		421,175		409,804
Derivative for trading		3,675,147		3,899,897
Sub-total		23,575,674		23,182,860
Available-for-sale (“AFS”) debt securities		13,316,713		13,086,849
Held-to-maturity (“HTM”) securities		19,059,506		20,036,128
Derivative assets (hedging)		318,745		326,840
Off-balance sheet item:
Guarantees		26,450,047		26,702,154
Loan commitments		87,794,420		88,400,600
Sub-total		114,244,467		115,102,754
Total		413,910,731		406,895,387

a) Credit risk exposure by geographical areas

The following tables analyze credit risk exposure by geographical areas (Unit: Korean Won in millions):

	June 30, 2012
	Korea		USA		UK		Japan		China		Others (*)		Total
Loans and receivables		234,307,823		1,755,651		631,652		529,694		2,442,509		3,728,297		243,395,626
Financial assets at FVTPL		23,453,385		—		3,524		20		85,820		32,925		23,575,674
AFS debt securities		13,152,147		116,334		—		—		8,145		40,087		13,316,713
HTM securities		19,003,799		1,462		—		—		—		54,245		19,059,506
Derivative assets (hedging)		318,745		—		—		—		—		—		318,745
Off-balance sheet items		111,101,399		283,654		91,929		76,386		510,731		2,180,368		114,244,467
Total		401,337,298		2,157,101		727,105		606,100		3,047,205		6,035,922		413,910,731

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	December 31, 2011
	Korea		USA		UK		Japan		China		Others (*)		Total
Loans and receivables		225,621,567		1,748,898		814,148		535,055		2,282,712		4,157,576		235,159,956
Financial assets at FVTPL		23,069,879		—		1,366		—		9,893		101,722		23,182,860
AFS debt securities		12,955,152		81,030		—		—		34,035		16,632		13,086,849
HTM securities		19,933,161		1,967		—		—		1,817		99,183		20,036,128
Derivative assets (hedging)		326,840		—		—		—		—		—		326,840
Off-balance sheet items		112,451,295		215,942		108,222		71,230		632,189		1,623,876		115,102,754
Total		394,357,894		2,047,837		923,736		606,285		2,960,646		5,998,989		406,895,387

(*) Others are including deposits, call loans and due from banks in Vietnam, Panama and European countries.

b) Credit risk exposure by industries

The following tables analyze credit risk exposure by industries, which are service industry, manufacturing industry, finance and insurance industry, construction industry, consumers and others in accordance with the Korea standard industrial classification code (Unit: Korean Won in millions):

	June 30, 2012
	Service		Manufacturing		Finance and insurance		Construction		Consumers		Others		Total
Loans and receivables		50,640,611		46,881,727		37,731,092		8,333,921		85,900,872		13,907,403		243,395,626
Financial assets at FVTPL		1,001,158		1,418,575		13,225,447		55,913		822		7,873,759		23,575,674
AFS debt securities		648,064		317,511		7,356,638		173,335		—		4,821,165		13,316,713
HTM securities		1,933,378		50,225		7,817,874		784,586		—		8,473,443		19,059,506
Derivative assets (hedging)		3		—		318,522		—		—		220		318,745
Off-balance sheet items		19,155,204		36,354,291		16,099,104		6,419,706		28,380,775		7,835,387		114,244,467
Total		73,378,418		85,022,329		82,548,677		15,767,461		114,282,469		42,911,377		413,910,731

	December 31, 2011
	Service		Manufacturing		Finance and insurance		Construction		Consumers		Others		Total
Loans and receivables		48,945,299		47,695,469		32,693,537		8,041,012		84,528,891		13,255,748		235,159,956
Financial assets at FVTPL		726,618		1,862,004		13,934,077		76,103		39		6,584,019		23,182,860
AFS debt securities		802,032		245,531		6,383,456		145,744		—		5,510,086		13,086,849
HTM securities		1,558,998		80,317		9,504,549		678,545		—		8,213,719		20,036,128
Derivative assets (hedging)		—		—		326,393		—		—		447		326,840
Off-balance sheet items		18,906,958		41,151,375		10,912,549		6,554,705		29,548,373		8,028,794		115,102,754
Total		70,939,905		91,034,696		73,754,561		15,496,109		114,077,303		41,592,813		406,895,387

- 9 -

3) Credit risk of loans and receivables

The credit exposure of loans and receivables by customer and loan condition are as follows (Unit: Korean Won in millions):

	June 30, 2012
					Corporates
	Korean treasury and government agencies		Banks		General business		Small medium sized enterprise		Project financing		Sub-total		Consumers		Total
Loans neither overdue nor impaired		16,231,898		19,096,069		66,902,345		33,429,906		7,199,600		107,531,851		96,995,661		239,855,479
Loans overdue but not impaired		2,281		9,967		126,855		135,172		2		262,029		1,441,037		1,715,314
Impaired loans		2		1,491		2,256,143		1,799,703		657,706		4,713,552		1,278,462		5,993,507
Gross loans		16,234,181		19,107,527		69,285,343		35,364,781		7,857,308		112,507,432		99,715,160		247,564,300
Provision for credit losses		4,218		17,173		2,254,607		797,863		519,979		3,572,449		574,834		4,168,674
Total, net		16,229,963		19,090,354		67,030,736		34,566,918		7,337,329		108,934,983		99,140,326		243,395,626

	December 31, 2011
					Corporates
	Korean treasury and government agencies		Banks		General business		Small medium sized enterprise		Project financing		Sub-total		Consumers		Total
Loans neither overdue nor impaired		13,765,038		12,934,452		67,162,724		32,772,948		9,037,396		108,973,068		96,548,782		232,221,340
Loans overdue but not impaired		325		3,493		59,112		133,244		8,132		200,488		1,273,662		1,477,968
Impaired loans		1		1,494		2,249,694		1,810,179		479,023		4,538,896		958,255		5,498,646
Gross loans		13,765,364		12,939,439		69,471,530		34,716,371		9,524,551		113,712,452		98,780,699		239,197,954
Provision for credit losses		3,770		18,109		2,040,879		975,209		491,621		3,507,709		508,410		4,037,998
Total, net		13,761,594		12,921,330		67,430,651		33,741,162		9,032,930		110,204,743		98,272,289		235,159,956

- 10 -

a) Credit quality of loans and receivables

The Group manages its loans and receivables, net of allowance that are not overdue nor impaired through an internal rating system. Segregation of credit quality is as follows (Unit: Korean Won in millions):

	June 30, 2012
					Corporates
	Korean treasury and government agencies		Banks		General business		Small medium sized enterprise		Project financing		Sub-total		Consumers		Total
Investment grade		16,222,133		19,079,801		43,094,037		9,577,573		3,684,593		56,356,203		88,766,104		180,424,241
Non-investment grade (*)		5,552		246		22,733,945		23,524,384		3,261,051		49,519,380		8,031,986		57,557,164
Total		16,227,685		19,080,047		65,827,982		33,101,957		6,945,644		105,875,583		96,798,090		237,981,405
Value of collateral		5,789		675,303		26,739,782		24,964,628		2,406,328		54,110,738		81,102,489		135,894,319

	December 31, 2011
					Corporates
	Korean treasury and government agencies		Banks		General business		Small medium sized enterprise		Project financing		Sub-total		Consumers		Total
Investment grade		13,753,815		12,892,460		43,035,863		8,710,329		4,624,455		56,370,647		85,841,335		168,858,257
Non-investment grade (*)		7,454		25,076		23,310,931		23,740,023		4,042,946		51,093,900		10,507,991		61,634,421
Total		13,761,269		12,917,536		66,346,794		32,450,352		8,667,401		107,464,547		96,349,326		230,492,678
Value of collateral		6,374		540,337		27,903,763		26,029,317		2,818,055		56,751,135		79,859,625		137,157,471

(*) Below BBB- by internal credit rating

The Group recognized provisions for credit losses, for loans and receivables neither overdue nor impaired, in the amount of 1,874,074 million Won and 1,728,662 million Won as of June 30, 2012 and December 31, 2011, respectively, which is deducted from the loans and receivables.

- 11 -

b) Aging analysis of loans and receivables

Aging analysis of loans and receivables, net of provision overdue but not impaired is as follows (Unit: Korean Won in millions):

	June 30, 2012
	Korean treasury and				Corporates
Past due	government agencies		Banks		General business		Small medium sized enterprise		Project financing		Sub-total		Consumers		Total
Less than 30 days		2,278		9,963		100,469		99,209		2		199,680		1,149,470		1,361,391
30 to 60 days		—		—		18,359		19,979		—		38,338		106,029		144,367
60 to 90 days		—		—		3,010		5,605		—		8,615		92,027		100,642
Total		2,278		9,963		121,838		124,793		2		246,633		1,347,526		1,606,400
Value of collateral (*)		—		—		34,611		59,443		—		94,054		1,005,555		1,099,609

	December 31, 2011
	Korean treasury and				Corporates
Past due	government agencies		Banks		General business		Small medium sized enterprise		Project financing		Sub-total		Consumers		Total
Less than 30 days		325		3,491		54,278		93,190		7,708		155,176		1,007,040		1,166,032
30 to 60 days		—		—		4,964		21,707		—		26,671		115,415		142,086
60 to 90 days		—		—		1,796		8,724		—		10,520		69,098		79,618
Total		325		3,491		61,038		123,621		7,708		192,367		1,191,553		1,387,736
Value of collateral (*)		—		—		15,112		100,549		—		115,661		894,850		1,010,511

(*) The value of collateral held is recoverable amount used when calculating provision for credit losses.

The Group recognized provisions for credit losses, for loans and receivables that are overdue but not impaired, in the amount of 108,914 million Won and 90,232 million Won as of June 30, 2012 and December 31, 2011, respectively, which is deducted from the loans and receivables.

c) Impaired loans and receivables

Impaired loans and receivables, net of provision is as follows (Unit: Korean Won in millions):

	June 30, 2012
	Korean treasury and		Banks		Corporates								Consumers		Total
	government agencies				General business		Small medium sized enterprise		Project financing		Sub-total
Impaired loans		—		344		1,080,914		1,340,169		391,684		2,812,767		994,710		3,807,821
Value of collateral (*)		—		—		990,917		571,129		128,998		1,691,044		504,965		2,196,009

	December 31, 2011
	Korean treasury and		Banks		Corporates								Consumers		Total
	government agencies				General business		Small medium sized enterprise		Project financing		Sub-total
Impaired loans		—		303		1,026,034		1,163,975		357,820		2,547,829		731,410		3,279,542
Value of collateral (*)		—		—		841,529		683,823		199,382		1,724,734		387,943		2,112,677

(*) The value of collateral held is recoverable amount used when calculating provision for credit losses.

- 12 -

The Group recognized provisions for credit losses, for impaired loans and receivables, in the amount of 2,185,686 million Won and 2,219,104 million Won as of June 30, 2012 and December 31, 2011, respectively, which is deducted from the impaired loans and receivables.

4) Credit risk 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):

	June 30, 2012
	Debt securities held for trading		Designated at FVTPL		AFS debt securities		HTM securities		Total
AAA		12,071,992		—		10,757,421		17,165,580		39,994,993
AA- ~ AA+		5,967,390		—		890,333		1,063,002		7,920,725
BBB- ~ A+		1,437,426		368,538		1,642,192		830,924		4,279,080
Below BBB-		—		52,637		24,920		—		77,557
Default grade		—		—		1,847		—		1,847
Total		19,476,808		421,175		13,316,713		19,059,506		52,274,202

	December 31, 2011
	Debt securities held for trading		Designated at FVTPL		AFS debt securities		HTM securities		Total
AAA		11,631,283		—		10,105,669		17,910,287		39,647,239
AA- ~ AA+		6,428,995		—		1,102,943		1,223,193		8,755,131
BBB- ~ A+		748,023		408,810		1,723,995		902,648		3,783,476
Below BBB-		64,858		994		152,397		—		218,249
Default grade		—		—		1,845		—		1,845
Total		18,873,159		409,804		13,086,849		20,036,128		52,405,940

(2) Market risk

Market risk is the possible risk of loss arising from trading activities and non-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 changes in the interest rates, credit spreads, foreign exchange rates and the price of equity securities.

1) Market risk management

For trading activities and non-trading activities, the Group avoids, bears or mitigates risks by identifying the underlying source of the risks, measuring parameters and evaluating their appropriateness.

At the beginning of each year, the Risk Management Committee establishes the VaR limit, loss limit and risk capital limit by subsidiaries for its management purposes. Limit by investment desk/dealer is independently managed to the extent of the limit given to subsidiaries and the limit by investment and loss cut is managed by risk management personnel with department.

The Group uses both a standard-based and an internal model-based approach to measure market risk. The standard-based approach is used to calculate individual market risk of owned capital while the internal model-based approach is used to calculate general capital market risk and it is used to measure internal risk management measure. For the trading activities, 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.

- 13 -

2) Sensitivity analysis of market risk

The Group performs the sensitivity analyses for both trading and non-trading activities. For the trading activities, the Group uses a VaR model which uses certain assumptions of possible fluctuations in market conditions and, by conducting simulations of gains and losses, 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 the 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 Group’s bank subsidiaries such as Woori Bank, Kyongnam Bank and Kwangju Bank, and the risks for all other subsidiaries are measured and managed by the interest rate EaR and the interest rate VaR calculations in interest rate per Bank for International Settlements (“BIS”) Framework. NII is a profit based indicator for displaying profit changes in short term due to the short term interest change. It will be estimated as subtracting interest expenses of liabilities from the interest income of assets. NPV is an indicator for displaying risks in economical view according to unfavorable changes related to interest rate. It will be estimated as subtracting the present value of liabilities from the present value of asset. EaR shows the maximum profit-loss amount, which indicates the maximum deduction amount caused by the unfavorable changes related to interest rate of a certain period of time. Interest rate VaR shows the potential maximum loss generated by the unfavorable changes during a certain period of time in the present or future.

a) Trading activities

The minimum, maximum and average VaR for the six months ended June 30, 2012 and for the year ended December 31, 2011, respectively, and the VaR as of June 30, 2012 and December 31, 2011, respectively, are as follows (Unit: Korean Won in millions):

	As of June 30, 2012			For the six months ended June 30, 2012									As of December 31, 2011			For the year ended December 31, 2011
				Average			Maximum			Minimum						Average			Maximum			Minimum
Interest rate		(6,440	)		(8,716	)		(12,277	)		(5,801	)		(8,495	)		(8,733	)		(11,117	)		(5,967	)
Stock price		(4,153	)		(5,196	)		(8,095	)		(3,288	)		(6,329	)		(7,653	)		(11,486	)		(4,974	)
Foreign currencies		(2,296	)		(2,783	)		(4,605	)		(1,924	)		(3,227	)		(3,573	)		(7,151	)		(1,639	)
Commodity price		(73	)		(139	)		(553	)		(3	)		(3	)		(333	)		(3,070	)		(2	)
Total		(7,597	)		(10,029	)		(12,755	)		(7,416	)		(10,682	)		(11,330	)		(14,675	)		(8,053	)

b) Non-trading activities

The NII and NPV calculated, respectively, by using the simulation method for Woori Bank, Kyongnam Bank and Kwangju Bank and the scenario responding to interest rate (“IR”) changes are as follows (Unit: Korean Won in millions):

	June 30, 2012				December 31, 2011
	NII		NPV		NII		NPV
Base case		5,720,971		15,617,148		5,943,993		13,262,235
Base case (Prepay)		5,728,066		15,210,547		5,949,816		13,148,172
IR 100bp up		6,025,537		15,534,487		6,230,290		13,375,487
IR 100bp down		5,430,964		15,715,808		5,614,039		13,172,038
IR 200bp up		6,330,102		15,466,918		6,516,351		13,507,906
IR 200bp down		5,092,531		15,831,383		5,193,395		13,109,481
IR 300bp up		6,634,667		15,413,022		6,802,411		13,655,892
IR 300bp down		4,700,917		15,966,188		4,671,343		13,082,383

- 14 -

The EaR and VaR calculated, respectively, based on the BIS Framework of the Company and subsidiaries excluding Woori Bank, Kyongnam Bank and Kwangju Bank are as follows (Unit: Korean Won in millions):

June 30, 2012				December 31, 2011
EaR	VaR			EaR			VaR
(8,468)		(61,774	)		(39,458	)		(66,885	)

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 maturity date are as follows (Unit: Korean Won in millions):

	June 30, 2012
	Total		Within 3 months		4 to 6 months		7 to 9 months		10 to 12 months		1 to 5 years		5 years ~
Asset:
Loans and receivables		245,318,278		148,939,664		32,072,940		9,499,557		10,259,768		23,648,080		20,898,269
AFS financial assets		17,164,509		3,159,695		3,004,603		1,925,599		1,835,606		6,651,419		587,587
HTM financial assets		20,722,123		3,337,666		1,584,421		1,368,380		1,251,358		12,920,005		260,293
Total		283,204,910		155,437,025		36,661,964		12,793,536		13,346,732		43,219,504		21,746,149
Liability:
Deposits due to customers		206,803,490		104,222,481		33,757,547		25,774,779		18,081,632		24,666,269		300,782
Borrowings		34,353,778		20,738,349		5,599,328		748,423		1,655,889		4,414,483		1,197,306
Debentures		30,475,758		2,918,856		2,799,328		2,307,815		2,217,993		18,080,061		2,151,705
Total		271,633,026		127,879,686		42,156,203		28,831,017		21,955,514		47,160,813		3,649,793

	December 31, 2011
	Total		Within 3 months		4 to 6 months		7 to 9 months		10 to 12 months		1 to 5 years		5 years ~
Asset:
Loans and receivables		221,489,544		162,935,497		28,109,587		5,347,251		6,011,847		12,292,132		6,793,230
AFS financial assets		16,997,594		2,687,482		1,715,632		2,253,811		3,153,123		6,703,353		484,193
HTM financial assets		21,548,196		4,079,416		2,843,038		1,346,271		1,308,890		11,815,271		155,310
Total		260,035,334		169,702,395		32,668,257		8,947,333		10,473,860		30,810,756		7,432,733
Liability:
Deposits due to customers		198,793,984		106,191,712		26,938,477		20,810,689		19,487,233		25,088,248		277,625
Borrowings		34,941,240		22,496,224		3,744,346		955,878		2,702,381		3,889,306		1,153,105
Debentures		30,960,193		5,406,008		1,888,020		1,532,052		2,601,066		17,650,244		1,882,803
Total		264,695,417		134,093,944		32,570,843		23,298,619		24,790,680		46,627,798		3,313,533

- 15 -

3) Currency risk

Currency risk arises from monetary financial instruments denominated in foreign currencies other than the functional currency. 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):

	June 30, 2012
	USD				JPY				CNY				EUR				Others		Total
	Foreign currency		Won equivalent		Foreign currency		Won equivalent		Foreign currency		Won equivalent		Foreign currency		Won equivalent		Won equivalent		Won equivalent
Asset:
Loans and receivables		20,627		23,798,925		297,722		4,328,256		10,742		1,948,039		810		1,162,608		1,998,585		33,236,413
Financial assets at FVTPL		753		868,075		1,213		17,630		202		36,587		8		11,757		—		934,049
AFS financial assets		300		346,215		762		11,080		10		1,754		14		20,406		42,860		422,315
HTM financial assets		6		7,254		—		—		—		—		—		—		48,453		55,707
Total		21,686		25,020,469		299,697		4,356,966		10,954		1,986,380		832		1,194,771		2,089,898		34,648,484
Liability:
Financial liabilities at FVTPL		425		490,390		1,663		24,182		—		—		2		2,320		1,492		518,384
Deposits due to customer		6,827		7,876,617		55,256		803,305		8,840		1,604,323		252		361,662		444,975		11,090,882
Borrowings		9,263		10,687,872		188,529		2,791,188		581		105,526		553		793,508		149,730		14,527,824
Debentures		3,787		4,369,450		29,105		423,123		—		—		—		—		637,534		5,430,107
Other financial liabilities		2,291		2,643,755		9,181		133,472		197		35,811		61		88,160		64,938		2,966,136
Total		22,593		26,068,084		283,734		4,175,270		9,618		1,745,660		868		1,245,650		1,298,669		34,533,333
Off-balance sheet items		12,444		14,358,123		42,446		626,138		257		46,619		975		1,398,847		665,320		17,095,047

	December 31, 2011
	USD				JPY				CNY				EUR				Others		Total
	Foreign currency		Won equivalent		Foreign currency		Won equivalent		Foreign currency		Won equivalent		Foreign currency		Won equivalent		Won equivalent		Won equivalent
Asset:
Loans and receivables		21,140		24,380,962		340,442		5,056,106		9,809		1,790,168		883		1,319,120		2,202,903		34,749,259
Financial assets at FVTPL		694		800,019		1,238		18,389		208		37,871		1		1,375		568		858,222
AFS financial assets		177		204,029		1,102		16,362		186		33,937		15		22,050		36,148		312,526
HTM financial assets		21		23,872		—		—		10		1,812		—		—		77,283		102,967
Total		22,032		25,408,882		342,782		5,090,857		10,213		1,863,788		899		1,342,545		2,316,902		36,022,974
Liability:
Financial liabilities at FVTPL		425		489,613		1,766		26,225		—		—		2		2,667		—		518,505
Deposits due to customer		6,275		7,239,714		63,427		942,003		8,790		1,604,293		230		344,227		508,233		10,638,470
Borrowings		8,452		9,748,919		199,649		2,965,102		4		766		859		1,283,618		344,566		14,342,971
Debentures		3,809		4,392,959		50,019		742,856		—		—		—		—		274,503		5,410,318
Other financial liabilities		2,553		2,944,212		25,010		371,451		128		23,428		372		555,366		200,691		4,095,148
Total		21,514		24,815,417		339,871		5,047,637		8,922		1,628,487		1,463		2,185,878		1,327,993		35,005,412
Off-balance sheet items		12,345		14,237,934		35,466		526,720		123		22,451		703		1,050,120		601,735		16,438,960

- 16 -

(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. Of the financial liabilities on the consolidated statements of financial position, financial liabilities in relation to liquidity risk become the objects of liquidity risk management. Derivatives are excluded from those financial liabilities as they reflect expected cash flows for a pre-determined period.

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 the 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):

	June 30, 2012
	Total		Within 3 months		4 to 6 months		7 to 9 months		10 to 12 months		1 to 5 years		5 years~
Financial liabilities at FVTPL		7,594,099		1,310,691		234,874		377,229		408,246		4,947,679		315,380
Deposits due to customers		210,834,207		110,249,931		29,646,796		24,874,384		38,126,161		6,235,177		1,701,758
Borrowings		34,974,704		18,365,741		6,379,296		1,688,508		2,330,477		5,016,230		1,194,452
Debentures		33,205,552		1,749,655		3,077,101		2,728,023		2,620,176		20,415,013		2,615,584
Other financial liabilities		14,256,273		9,060,106		38,136		20,191		337,202		232,297		4,568,341
Total		300,864,835		140,736,124		39,376,203		29,688,335		43,822,262		36,846,396		10,395,515

	December 31, 2011
	Total		Within 3 months		4 to 6 months		7 to 9 months		10 to 12 months		1 to 5 years		5 years~
Financial liabilities at FVTPL		5,780,042		1,057,626		184,647		260,209		362,821		3,670,422		244,317
Deposits due to customers		202,643,808		115,656,618		22,510,097		18,361,302		38,515,144		5,976,081		1,624,566
Borrowings		35,831,760		20,687,439		4,406,057		1,655,742		3,169,074		4,763,273		1,150,175
Debentures		33,791,328		4,106,984		2,119,383		1,696,919		3,001,881		20,353,520		2,512,641
Other financial liabilities		17,363,140		12,324,772		36,849		9,660		152,196		218,050		4,621,613
Total		295,410,078		153,833,439		29,257,033		21,983,832		45,201,116		34,981,346		10,153,312

- 17 -

b) Cash flows of principals and interests by expected maturities of non-derivative financial liabilities are as follows (Unit: Korean Won in millions):

	June 30, 2012
	Total		Within 3 months		4 to 6 months		7 to 9 months		10 to 12 months		1 to 5 years		5 years~
Financial liabilities at FVTPL		7,594,099		1,310,691		234,874		377,229		408,246		4,947,679		315,380
Deposits due to customers		209,807,268		128,525,749		34,335,501		22,722,725		17,980,306		5,098,216		1,144,771
Borrowings		34,974,704		18,365,741		6,379,296		1,688,508		2,330,477		5,016,230		1,194,452
Debentures		33,205,552		1,749,655		3,077,101		2,728,023		2,620,176		20,415,013		2,615,584
Other financial liabilities		14,256,273		9,060,106		38,136		20,191		337,202		232,297		4,568,341
Total		299,837,896		159,011,942		44,064,908		27,536,676		23,676,407		35,709,435		9,838,528

	December 31, 2011
	Total		Within 3 months		4 to 6 months		7 to 9 months		10 to 12 months		1 to 5 years		5 years~
Financial liabilities at FVTPL		5,780,042		1,057,626		184,647		260,209		362,821		3,670,422		244,317
Deposits due to customers		201,858,224		127,915,964		27,364,643		18,757,322		21,595,623		5,034,209		1,190,463
Borrowings		35,831,760		20,687,439		4,406,057		1,655,742		3,169,074		4,763,273		1,150,175
Debentures		33,791,328		4,106,984		2,119,383		1,696,919		3,001,881		20,353,520		2,512,641
Other financial liabilities		17,363,140		12,324,772		36,849		9,660		152,196		218,050		4,621,613
Total		294,624,494		166,092,785		34,111,579		22,379,852		28,281,595		34,039,474		9,719,209

3) Maturity analysis of derivative financial liabilities is as follows (Unit: Korean Won in millions):

	Total due		Within 3 months		4 to 6 months		7 to 9 months		10 to 12 months		1 to 5 years		5 years~
June 30, 2012		3,909,804		3,174,509		38,191		266,911		40,393		331,523		58,277
December 31, 2011		4,142,140		3,353,984		37,133		28,800		43,648		645,063		33,512

4) Maturity analysis of off-balance accounts are as follows (Unit: Korean Won in millions):

The Group gives guarantees on behalf of customers. A financial guarantee represents an irrevocable undertaking that the Group will meet a customer’s obligations to third parties if the customer fails to do so. Under a loan commitment the Group agrees to make funds available to a customer in the future. Loan commitments which are usually for a specified term may be unconditionally cancellable or may persist, provided all conditions in the loan facility are satisfied or waived. Commitments to lend include commercial standby facilities and credit lines, liquidity facilities to commercial paper (‘CP’) conduits and utilized overdraft facilities. Guarantees and loan commitments have expiration dates. However, under the term of the guarantees and loan commitments, amounts are funded upon demand by the counterparty. Details of off-balance accounts are as follows (Unit: Korea Won in millions):

	June 30, 2012		December 31, 2011
Guarantees		26,450,047		26,702,154
Loan commitments		87,794,420		88,400,600

- 18 -

(4) Capital management

In accordance with financial holding company regulations, the Group is required to maintain a minimum 8% of the capital adequacy ratio with high capital risk. The capital adequacy ratio must correspond to the standard of own capital regulation of BIS and is calculated by dividing own capital by asset (weighted with a risk premium – risk weighted assets) based on the financial statements of a holding company which owns bank as its subsidiary (the “bank holding company”) and its subsidiaries.

The own capital consists of basic capital and supplement capital. Goodwill and others which have only few characteristics as capital under the purposes of capital management are deducted from basic capital or own capital. The basic capital consists of capital, capital surplus, and retained earnings; while the supplement capital includes liabilities which meet regulatory requirements.

The risk weighted assets consist of credit risk weighted and market risk weighted assets. The credit risk weighted assets are calculated by multiplying risk weighted value which is given by credit level of other party on transaction, maturity of bond, collateral and the existence of guarantee by relevant assets. The market risk weighted assets are calculated by multiplying required capital on market risk (e.g. interest rate, stock and foreign currencies) by 12.5. The Group calculates its capital adequacy ratio under Basel ?, according to the financial holding company regulations.

Furthermore, the Group also uses an equity-to-assets ratio as an index to manage capital. The equity-to-assets ratio is calculated by dividing total amount of capital by total amount of assets based on the financial statements of bank holding company and its subsidiaries. The Group’s equity-to-assets ratio as of June 30, 2012 and December 31, 2011 are as follows (Unit: Korean Won in millions):

	June 30, 2012			December 31, 2011
Shareholders’ equity		22,447,910			22,073,394
Total assets		318,707,406			312,791,649
Equity-to-assets ratio		7.04	%		7.06	%

5. Operating Segments

The Group’s Chief Operation Decision Maker (CODM) is the Chief Financial Officer. In evaluating the results of the Group and allocating resources, the CODM utilizes two different sets of financial information. The primary one is the information prepared on the bases of type of customer and the secondary one is by legal entity. Both sets of financial information are equally monitored by the Board of Directors and each of the segments herein described are independently monitored.

(1) Segment by type of customers

The CODM monitors its businesses primarily by type of customers. The reportable segments are:

• Consumer banking: consumer banking divisions of subsidiaries, Woori Bank, Kyongnam Bank, Kwangju Bank and Woori Investment & Securities;

• Corporate banking: corporate banking divisions of subsidiaries, Woori Bank, Kyongnam Bank, Kwangju Bank and Woori Investment & Securities;

• Investment banking: investment banking divisions of subsidiaries, Woori Bank and Woori Investment & Securities;

• Capital market: capital market (representing securities trading and asset and liability management) divisions of subsidiaries, Woori Bank, Kyongnam Bank, Kwangju Bank and Woori Investment & Securities; and

• Others: the Company and administration centers of subsidiaries, Woori Bank, Kyongnam Bank, Kwangju Bank and Woori Investment & Securities and other consolidated subsidiaries.

- 19 -

(Unit: Korean Won in millions)

	June 30, 2012
	Consumer banking		Corporate banking		Investment banking		Capital market		Others		Sub-total		Inter-segment transaction			Total
Assets		81,598,301		117,559,150		9,296,361		50,645,201		86,504,898		345,603,911		(26,896,505	)		318,707,406
Liabilities		83,781,618		123,212,663		402,118		40,814,010		48,492,930		296,703,339		(443,843	)		296,259,496

	December 31, 2011
	Consumer banking		Corporate banking		Investment banking		Capital market		Others		Sub-total		Inter-segment transaction			Total
Assets		78,613,580		112,923,658		8,451,890		46,780,998		89,391,620		336,161,746		(23,370,097	)		312,791,649
Liabilities		81,570,032		117,413,072		95,663		32,320,238		62,149,647		293,548,652		(2,830,397	)		290,718,255

	Six months ended June 30, 2012
	Consumer banking			Corporate banking		Investment banking			Capital market			Others			Sub-total			Inter- segment transaction			Total
Interest income, net		1,364,011			1,572,007		(74	)		181,138			121,815			3,238,897			460,533			3,699,430
Interest income		2,501,749			3,170,106		182,731			633,114			1,217,826			7,705,526			(48,725	)		7,656,801
Interest expense		1,166,017			1,841,132		3,998			321,711			955,192			4,288,050			(330,679	)		3,957,371
Inter-segment		28,279			243,033		(178,807	)		(130,265	)		(140,819	)		(178,579	)		178,579			—
Non-interest income, net		288,455			281,093		113,556			(5,720	)		1,282,300			1,959,684			(1,075,945	)		883,739
Non-interest income		682,531			766,716		164,050			3,190,081			2,524,622			7,328,000			(707,090	)		6,620,910
Non-interest expense		380,110			505,682		41,662			3,221,815			1,219,055			5,368,324			368,847			5,737,171
Inter-segment		(13,966	)		20,059		(8,832	)		26,014			(23,267	)		8			(8	)		—
Other expense		1,222,931			1,367,216		111,611			122,579			731,855			3,556,192			(301,171	)		3,255,021
Administrative expense		1,174,279			490,206		32,687			50,809			415,856			2,163,837			(209,495	)		1,954,342
Impairment loss on credit loss		48,652			877,010		78,924			71,770			315,999			1,392,355			(91,676	)		1,300,679
Operating income		429,535			485,884		1,871			52,839			672,260			1,642,389			(314,241	)		1,328,148

	Six months ended June 30, 2011
	Consumer banking		Corporate banking		Investment banking			Capital market			Others			Sub-total			Inter- segment transaction			Total
Interest income, net		1,401,098		1,697,112		5,290			121,553			(50,703	)		3,174,350			365,238			3,539,588
Interest income		2,285,319		3,089,199		168,218			694,426			1,042,677			7,279,839			19,840			7,299,679
Interest expense		1,033,268		1,740,384		6,409			325,597			1,001,106			4,106,764			(346,673	)		3,760,091
Inter-segment		149,047		348,297		(156,519	)		(247,276	)		(92,274	)		1,275			(1,275	)		—
Non-interest income, net		375,663		262,142		59,868			33,202			1,668,100			2,398,975			(762,799	)		1,636,176
Non-interest income		808,371		966,250		323,753			4,400,506			3,880,983			10,379,863			(1,135,313	)		9,244,550
Non-interest expense		443,121		725,290		264,284			4,369,808			2,178,233			7,980,736			(372,362	)		7,608,374
Inter-segment		10,413		21,182		399			2,504			(34,650	)		(152	)		152			—
Other expense		1,214,310		851,836		389,033			54,882			585,175			3,095,236			64,794			3,160,030
Administrative expense		1,117,911		449,352		34,023			51,654			284,111			1,937,051			(123,119	)		1,813,932
Impairment loss on credit loss		96,399		402,484		355,010			3,228			301,064			1,158,185			187,913			1,346,098
Operating income		562,451		1,107,418		(323,875	)		99,873			1,032,222			2,478,089			(462,355	)		2,015,734

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(2) Segment by legal entity

The CODM also monitors the result of the Group by independent legal entities: Woori Bank, Kyongnam Bank, Kwangju Bank, Woori Investment & Securities and others.

• Woori Bank: Woori Bank and its consolidated subsidiaries

• Kyongnam Bank: Kyongnam Bank and its consolidated subsidiaries

• Kwangju Bank: Kwangju Bank and its consolidated subsidiaries

• Woori Investment & Securities: Woori Investment & Securities and its consolidated subsidiaries

• Others: the Company and its other consolidated subsidiaries

(Unit: Korean Won in millions)

	June 30, 2012
	Woori Bank		Kyongnam Bank		Kwangju Bank		Woori Investment & Securities		Others		Sub-total		Inter-segment transaction			Total
Assets		241,386,385		28,086,463		19,075,829		24,601,400		25,950,442		339,100,519		(20,393,113	)		318,707,406
Liabilities		223,282,469		26,194,475		17,802,172		21,177,425		10,501,665		298,958,206		(2,698,710	)		296,259,496

	December 31, 2011
	Woori Bank		Kyongnam Bank		Kwangju Bank		Woori Investment & Securities		Others		Sub-total		Inter-segment transaction			Total
Assets		242,472,162		25,353,427		18,030,369		21,535,058		25,380,943		332,771,959		(19,980,310	)		312,791,649
Liabilities		224,346,022		23,555,666		16,813,501		17,862,450		10,406,221		292,983,860		(2,265,605	)		290,718,255

	Six months ended June 30, 2012
	Woori Bank		Kyongnam Bank		Kwangju Bank			Woori Investment & Securities			Others		Sub-total		Inter- segment transaction			Total
Interest income, net		2,868,828		343,436		248,322			189,148			43,038		3,692,772		6,658			3,699,430
Interest income		5,870,218		691,056		493,812			353,731			279,588		7,688,405		(31,604	)		7,656,801
Interest expense		3,001,390		347,620		245,490			164,583			236,550		3,995,633		(38,262	)		3,957,371
Non-interest income, net		621,950		3,381		(2	)		203,194			780,456		1,608,979		(725,240	)		883,739
Non-interest income		5,038,402		190,662		70,770			1,225,062			894,028		7,418,924		(798,014	)		6,620,910
Non-interest expense		4,416,452		187,281		70,772			1,021,868			113,572		5,809,945		(72,774	)		5,737,171
Other expense		2,496,863		212,519		136,492			287,233			286,119		3,419,226		(164,205	)		3,255,021
Administrative expense		1,338,112		135,264		111,876			287,387			233,452		2,106,091		(151,749	)		1,954,342
Impairment loss on credit loss		1,158,751		77,255		24,616			(154	)		52,667		1,313,135		(12,456	)		1,300,679
Operating income		993,915		134,298		111,828			105,109			537,375		1,882,525		(554,377	)		1,328,148

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	Six months ended June 30, 2011
	Woori Bank		Kyongnam Bank		Kwangju Bank		Woori Investment & Securities			Others			Sub-total		Inter- segment transaction			Total
Interest income, net		2,793,042		335,616		249,499		154,232			(1,916	)		3,530,473		9,115			3,539,588
Interest income		5,664,963		614,388		462,762		317,194			250,312			7,309,619		(9,940	)		7,299,679
Interest expense		2,871,921		278,772		213,263		162,962			252,228			3,779,146		(19,055	)		3,760,091
Non-interest income, net		1,259,600		5,225		5,894		254,644			780,262			2,305,625		(669,449	)		1,636,176
Non-interest income		7,216,500		241,029		80,008		1,502,401			961,086			10,001,024		(756,474	)		9,244,550
Non-interest expense		5,956,900		235,804		74,114		1,247,757			180,824			7,695,399		(87,025	)		7,608,374
Other expense		2,354,691		179,824		157,001		281,670			306,072			3,279,258		(119,228	)		3,160,030
Administrative expense		1,223,169		120,436		98,310		287,644			228,062			1,957,621		(143,689	)		1,813,932
Impairment loss on credit loss		1,131,522		59,388		58,691		(5,974	)		78,010			1,321,637		24,461			1,346,098
Operating income		1,697,951		161,017		98,392		127,206			472,274			2,556,840		(541,106	)		2,015,734

(3) Information on financial products and services

The financial products of the Group are classified as interest-bearing products such as loans, deposits and debt securities and non-interest bearing products such as loan commitment, credit commitment, equity securities, and credit card service. This classification of products has been reflected in the segment information presenting interest income and non-interest income.

(4) Information on geographical areas

Of the Group’s revenue (interest income and non-interest income) from services, revenue from the domestic customers for six months ended June 30, 2012 and 2011 amounted to 13,964,124 million Won and 16,211,306 million Won, respectively, and revenue from the foreign customers amounted to 313,587 million Won and 332,923 million Won, respectively. Of the Groups’ non-current assets (investments in jointly controlled entities and associates, investment properties, premises and equipment and intangible assets), non-current assets attributed to domestic subsidiaries as of June 30, 2012 and December 31, 2011 are 4,972,802 million Won and 4,974,603 million Won, respectively, and foreign subsidiaries are 37,863 million Won and 34,992 million Won, respectively.

- 22 -

6. Restricted Deposits

Details of restricted deposits are as follows (Unit: Korean Won in millions):

	June 30, 2012		December 31, 2011
Financial assets at FVTPL:
Korea Finance Security Co., Ltd.		796,029		818,252	Regulation on supervision of securities business
Loans and receivables:
Due from banks in local currency
The Bank of Korea		12,634,853		11,304,073	Reserve deposits
Korea Exchange		751		751	Deposits for required allotted charges
Korea Finance Security Co., Ltd.		278,271		309,681	Regulation on supervision of securities business
Samsung Security, etc.		26,877		46,121	Margins
Shinhan Bank, etc.		55		68	Deposits for opening account, etc.
Others		731,420		658,628	Borrowings on collateral, etc.
Due from banks in foreign currencies
The Bank of Korea		363,039		350,951	Reserve deposits
The Central Bank of China, etc.		480,182		517,631	Reserve deposits
Bank of Tokyo Mitsubishi, etc.		54,027		59,024	Installation deposits of financial institution, etc.
JP Morgan Chase Bank, etc.		39,114		110,369	Derivative transaction collateral provider, etc.
Sub-total		14,608,589		13,357,297
Total		15,404,618		14,175,549

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7. Financial Assets at FVTPL

Financial assets at FVTPL consist of financial assets held for trading and financial assets designated at FVTPL.

(1) Financial assets held for trading are as follows (Unit: Korean Won in millions):

	June 30, 2012		December 31, 2011
Deposits:
Reserve for claims of customers deposits		796,029		818,252
Gold banking deposits		2,544		—
Sub-total		798,573		818,252
Securities:
Debt securities
Korean treasury and government agencies		2,826,418		1,194,168
Financial institutions		4,635,354		5,194,371
Corporates		5,297,147		5,394,733
CP		2,756,511		2,972,865
Equity securities		633,179		608,310
Beneficiary certificates (*)		337,874		324,843
CMA securities		2,508,479		2,466,325
Others		1,452,899		1,650,696
Sub-total		20,447,861		19,806,311
Derivatives instruments assets:
Interest rate derivatives		1,428,799		1,552,875
Currency derivatives		1,990,103		2,205,831
Equity derivatives		204,378		95,533
Credit derivatives		11,383		17,878
Commodity derivatives		40,484		27,780
Sub-total		3,675,147		3,899,897
Total		24,921,581		24,524,460

(*) Beneficiary certificates are securities which state beneficiary’s right to receive profit from operation of trusts or funds.

(2) Financial assets designated at FVTPL as follows (Unit: Korean Won in millions):

	June 30, 2012		December 31, 2011
Equity-linked securities		600,753		654,124
Asset-backed securities		413,155		409,804
Debt securities		8,020		—
Equity securities		7,968		11,843
Structured deposit		10,284		—
Total		1,040,180		1,075,771

- 24 -

8. AFS Financial Assets

AFS financial assets are as follows (Unit: Korean Won in millions):

	June 30, 2012		December 31, 2011
Debt securities:
Korean treasury and government agencies		2,589,714		2,786,721
Financial institutions		5,625,449		5,210,425
Corporates		4,305,551		4,183,377
Asset-backed securities		388,539		599,321
Foreign currency bonds		172,232		132,906
Sub-Total		13,081,485		12,912,750
Equity securities		2,286,955		2,751,461
Beneficiary certificates		3,405,387		3,788,430
Others		245,694		219,283
Total		19,019,521		19,671,924

9. HTM Financial Assets

HTM financial assets are as follows (Unit: Korean Won in millions):

	June 30, 2012		December 31, 2011
Korean treasury and government agencies		7,537,208		7,234,926
Financial institutions		4,149,893		5,858,741
Corporates		7,305,764		6,828,617
Foreign government		55,707		102,967
Securities loaned		10,934		10,877
Total		19,059,506		20,036,128

10. Loans and Receivables

(1) Loans and receivables are as follows (Unit: Korean Won in millions):

	June 30, 2012			December 31, 2011
Due from banks		17,688,344			15,347,524
Provision for credit losses		(6,005	)		(7,175	)
Loans		218,378,508			212,639,337
Provision for credit losses		(3,837,142	)		(3,759,304	)
Other receivables		11,497,448			11,211,093
Provision for credit losses		(325,527	)		(271,519	)
Total		243,395,626			235,159,956

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(2) Due from banks are as follows (Unit: Korean Won in millions):

	June 30, 2012			December 31, 2011
Due from banks in local currency
Due from the Bank of Korea		12,634,853			11,304,073
Due from depository banks		2,597,996			1,641,349
Due from non-depository		126,127			137,037
Due from the Korea Exchange		600,705			249,248
Others		15,311			25,919
Provision for losses		(4,515	)		(4,887	)
Sub-total		15,970,477			13,352,739
Due from banks in foreign currencies
Due from banks on demand		510,960			649,068
Due from banks on time		722,967			471,600
Others		479,425			869,230
Provision for credit losses		(1,490	)		(2,288	)
Sub-total		1,711,862			1,987,610
Total		17,682,339			15,340,349

(3) Loans are as follows (Unit: Korean Won in millions):

	June 30, 2012			December 31, 2011
Loans in local currency		176,629,086			171,589,808
Loans in foreign currencies		12,081,982			13,243,422
Domestic banker’s letter of credit		6,333,223			5,423,078
Credit card accounts		4,311,863			4,592,095
Bills bought in foreign currencies		6,271,064			5,672,021
Bills bought in local currency		946,584			661,151
Factoring receivables		226,178			275,732
Advances for customers on guarantees		91,228			41,870
Privately placed bonds		1,524,540			1,738,138
Loans to be converted to equity securities		1,723			1,723
Finance leases		659,387			661,764
Loans for installment		1,660,777			1,535,405
Securitized loans		1,805,916			1,614,240
Loans secured by securities		1,232,749			1,181,402
Call loans		2,241,834			3,431,638
Bonds purchased under resale agreements		2,096,200			749,490
Others		264,174			226,360
Gross loans		218,378,508			212,639,337
Provision for loan losses		(3,837,142	)		(3,759,304	)
Total		214,541,366			208,880,033

(4) Other receivables are as follows (Unit: Korean Won in millions):

	June 30, 2012			December 31, 2011
CMA accounts		48,584			167,847
Receivables		7,927,944			7,378,434
Accrued income		1,464,391			1,452,733
Telex and telephone subscription rights and refundable deposits		1,273,468			1,253,525
Other debtors		783,061			958,554
Provision for credit losses		(325,527	)		(271,519	)
Total		11,171,921			10,939,574

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(5) Changes in provision for possible credit losses on loans and receivables are as follows (Unit: Korean Won in millions):

	For the six months ended June 30, 2012
	Consumers			Corporates			Credit card			Others			Total
Beginning balance		(259,964	)		(3,142,902	)		(128,718	)		(506,414	)		(4,037,998	)
Bad debt expenses for the period		(102,549	)		(861,198	)		(93,724	)		(47,533	)		(1,105,004	)
Recoveries of written-off loans		(25,780	)		(53,458	)		(17,234	)		(1,142	)		(97,614	)
Charge-off		67,917			769,437			91,848			16,353			945,555
Sales of loans and receivables		3,156			74,775			100			914			78,945
Unwinding effect		7,491			47,548			85			3,438			58,562
Others		396			38,263			113			(49,892	)		(11,120	)
Ending balance		(309,333	)		(3,127,535	)		(147,530	)		(584,276	)		(4,168,674	)

	For the year ended December 31, 2011
	Consumers			Corporates			Credit card			Others			Total
Beginning balance		(217,366	)		(4,185,626	)		(122,415	)		(392,007	)		(4,917,414	)
Bad debt expenses for the period		(141,199	)		(1,781,456	)		(115,100	)		(124,870	)		(2,162,625	)
Increase on repurchase of NPL		(295	)		(3,230	)		—			—			(3,525	)
Recoveries of written-off loans		(43,036	)		(26,107	)		(33,718	)		(1,626	)		(104,487	)
Charge-off		123,740			2,079,835			141,954			23,274			2,368,803
Sales of loans and receivables		8,376			527,943			—			1,296			537,615
Unwinding effect		8,882			139,783			75			7,357			156,097
Others		934			105,956			486			(19,838	)		87,538
Ending balance		(259,964	)		(3,142,902	)		(128,718	)		(506,414	)		(4,037,998	)

11. The Fair Value of Financial Assets and Liabilities

(1) The fair value hierarchy

The fair value hierarchy prioritizes and ranks the levels of market price observability used in the financial assets and liabilities at fair value. Market price observability is impacted by a number of factors, including the types of and the characteristics specific to the financial assets and liabilities and the state of the marketplace (including the existence and transparency of transactions between market participants). Fair value with readily-available actively quoted prices or measured from actively-quoted prices in an orderly market will generally have a higher degree of market price observability and a lesser degree of judgment used in measuring fair value. The fair value hierarchy requires the Group to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. Fair value is a market-based measure considered from the perspective of a market participant. As such, even when market assumptions are not readily available, the Group’s own assumptions reflect those that market participants would use in pricing the assets or liabilities at the measurement date. The fair value measurement is described in the one of the following three levels used to classify fair value measurements:

• Level 1— fair value measurements are those derived from quoted prices (unadjusted) in active markets for identical assets or liabilities. The types of financial assets or liabilities generally included in Level 1 are publicly traded equity securities and derivatives.

• 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). The types of financial assets or liabilities generally included in Level 2 are debt securities not traded in active markets and derivatives traded in OTC but not required significant judgment.

• 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). The types of financial assets or liabilities generally included in Level 3 are non-public securities and derivatives and debt securities of which valuation techniques require significant judgments and subjectivity.

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The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, the level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. The Group’s assessment of the significance of a particular input to a fair value measurement in its entirety requires judgment and consideration of factors specific to the asset or liability.

(2) Fair value hierarchy of financial assets and liabilities measured at fair value are as follows (Unit: Korean Won in millions):

	June 30, 2012
	Level 1		Level 2		Level 3		Total
Financial assets:
Financial assets held for trading
Deposits
Reserve for claims of customers’ deposits		—		796,029		—		796,029
Gold banking deposits		2,544		—		—		2,544
Debt securities
Korean treasury and government agencies		2,177,820		648,598		—		2,826,418
Financial institutions		—		4,635,354		—		4,635,354
Corporates		—		5,297,147		—		5,297,147
CP		—		2,756,511		—		2,756,511
Equity securities		633,179		—		—		633,179
Beneficiary certificates		252,602		85,272		—		337,874
CMA securities		—		2,508,479		—		2,508,479
Others		323,176		1,129,723		—		1,452,899
Derivatives instruments assets:
Interest rate derivatives		—		1,397,830		30,969		1,428,799
Currency derivatives		3		1,989,585		515		1,990,103
Equity derivatives		10,434		102,703		91,241		204,378
Credit derivatives		—		4,101		7,282		11,383
Commodity derivatives		303		32,356		7,825		40,484
Financial assets designed at FVTPL
Equity-linked securities		—		165,627		435,126		600,753
Asset-backed securities		—		365,082		48,073		413,155
Debt securities		—		—		8,020		8,020
Equity securities		657		—		7,311		7,968
Structured deposit		—		10,284		—		10,284
AFS financial assets
Debt securities
Korean treasury and government agencies		2,490,417		99,297		—		2,589,714
Financial institutions		—		5,616,649		8,800		5,625,449
Corporates		—		4,233,534		72,017		4,305,551
Asset-backed securities		—		388,539		—		388,539
Foreign currency bonds		14,014		156,372		1,846		172,232
Equity securities		401,217		—		1,885,738		2,286,955
Beneficiary certificates		—		3,362,219		43,168		3,405,387
Others		122,284		77,079		46,331		245,694
Derivative assets		—		318,745		—		318,745
Financial liabilities:
Financial liabilities held for trading
Deposits
Gold banking liabilities		2,624		—		—		2,624
Borrowings
Warrants in short position		3,541		1,489		—		5,030
Securities in short position		737,529		6,516		—		744,045
Derivative liabilities
Interest rate derivatives		—		1,518,030		31,178		1,549,208
Currency derivatives		—		1,587,215		—		1,587,215
Stock derivatives		5,544		147,278		378,843		531,665
Credit derivatives		—		573		9,186		9,759
Commodity derivatives		—		32,612		7,714		40,326
Others		515		—		—		515
Financial liabilities designated at FVTPL
Borrowings		—		2,323,343		4,111,503		6,434,846
Debentures		—		322,109		—		322,109
Derivative liabilities		—		34,710		—		34,710

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	December 31, 2011
	Level 1		Level 2		Level 3		Total
Financial assets:
Financial assets held for trading
Deposits
Reserve for claims of customers’ deposits		—		870,083		—		870,083
Debt securities
Korean treasury and government agencies		787,071		407,097		—		1,194,168
Financial institutions		—		5,194,371		—		5,194,371
Corporates		—		5,394,733		—		5,394,733
CP		—		2,972,865		—		2,972,865
Equity securities		608,310		—		—		608,310
Beneficiary certificates		287,628		37,215		—		324,843
CMA securities		—		2,466,325		—		2,466,325
Others		19,876		1,630,820		—		1,650,696
Derivatives instruments assets:
Interest rate derivatives		—		1,539,099		13,776		1,552,875
Currency derivatives		—		2,204,356		1,475		2,205,831
Equity derivatives		3,186		37,991		54,356		95,533
Credit derivatives		—		3,337		14,541		17,878
Commodity derivatives		—		20,296		7,484		27,780
Financial assets designed at FVTPL
Equity linked securities		994		204,339		448,791		654,124
Asset-backed securities		—		360,442		49,362		409,804
Equity securities		623		—		11,220		11,843
AFS financial assets
Debt securities
Korean treasury and government agencies		2,632,569		154,152		—		2,786,721
Financial institutions		—		5,201,625		8,800		5,210,425
Corporates		—		4,118,069		65,308		4,183,377
Asset-backed securities		—		599,321		—		599,321
Foreign currency bonds		9,116		121,945		1,845		132,906
Equity securities		481,114		—		2,270,347		2,751,461
Beneficiary certificates		—		3,772,221		16,209		3,788,430
Others		90,209		35,434		93,640		219,283
Derivative assets		—		326,840		—		326,840
Financial liabilities:
Financial liabilities held for trading
Borrowings
Warrants in short position		—		10,309		—		10,309
Securities in short position		606,723		20,156		—		626,879
Derivative liabilities
Interest rate derivatives		—		1,658,036		12,809		1,670,845
Currency derivatives		—		1,689,844		—		1,689,844
Stock derivatives		7,676		106,219		402,939		516,834
Credit derivatives		—		7,308		14,251		21,559
Commodity derivatives		—		19,536		6,217		25,753
Others		109		—		—		109
Financial liabilities designated at FVTPL
Borrowings		—		1,839,656		2,897,551		4,737,207
Debentures		—		322,207		—		322,207
Derivative liabilities		—		33,493		—		33,493

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(3) Changes in financial assets and liabilities classified into Level 3 are as follows (Unit: Korean Won in millions):

	For the six months ended June 30, 2012
	January 1, 2012		Net income			Other comprehensive income (loss)			Purchases/ Issuances		Disposals/ Settlements			Transfer to or from level 3			June 30, 2012
Financial assets:
Financial assets held for trading
Derivatives instruments assets
Interest rate derivatives		13,776		17,214			—			—		(21	)		—			30,969
Currency derivatives		1,475		(126	)		—			—		(834	)		—			515
Equity derivatives		54,356		45,897			—			113,026		(122,038	)		—			91,241
Credit derivatives		14,541		(7,259	)		—			—		—			—			7,282
Commodity derivatives		7,484		1,675			—			27		(1,361	)		—			7,825
Financial assets designed at FVTPL
Equity-linked securities		448,791		20,550			—			130,967		(165,182	)		—			435,126
Asset-backed securities		49,362		(1,289	)		—			—		—			—			48,073
Debt securities		—		—			—			8,020		—			—			8,020
Equity securities		11,220		(230	)		—			—		(3,679	)		—			7,311
AFS financial assets
Debt securities
Financial institutions		8,800		—			—			—		—			—			8,800
Corporates		65,308		—			(3,279	)		20,000		(10,012	)		—			72,017
Foreign currency bonds		1,845		1			—			—		—			—			1,846
Equity securities		2,270,347		(13,585	)		35,619			46,166		(453,592	)		783			1,885,738
Beneficiary certificates		16,209		(1,247	)		2,005			3,006		(483	)		23,678			43,168
Others		93,640		(951	)		(1,449	)		66,071		(109,113	)		(1,867	)		46,331
Financial liabilities:
Financial liabilities held for trading
Derivative liabilities
Interest rate derivatives		12,809		17,416			—			1,000		(47	)		—			31,178
Stock derivatives		402,939		(59,021	)		—			81,992		(47,067	)		—			378,843
Credit derivatives		14,251		(6,585	)		—			1,520		—			—			9,186
Commodity derivatives		6,217		1,865			—			1,043		(1,411	)		—			7,714
Financial liabilities designated at FVTPL
Borrowings		2,897,551		130,150			—			2,127,228		(1,043,426	)		—			4,111,503

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	For the year ended December 31, 2011
	January 1, 2011		Net income			Other comprehensive income (loss)			Purchases/ Issuances		Disposals/ Settlements			December 31, 2011
Financial assets:
Financial assets held for trading
Derivatives instruments assets
Interest rate derivatives		13,727		1,470			—			—		(1,421	)		13,776
Currency derivatives		1,600		(68	)		—			—		(57	)		1,475
Equity derivatives		62,923		(21,039	)		—			35,604		(23,132	)		54,356
Credit derivatives		3,873		10,798			—			—		(130	)		14,541
Commodity derivatives		4,119		(949	)		—			7,091		(2,777	)		7,484
Financial assets designed at FVTPL
Equity linked securities		253,318		(87,676	)		—			433,589		(150,440	)		448,791
Asset-backed securities		53,506		1,534			—			—		(5,678	)		49,362
Equity securities		10,345		1,199			—			440		(764	)		11,220
AFS Financial Assets
Debt securities
Financial institutions		8,800		—			—			—		—			8,800
Corporates		78,882		2,993			153			40,000		(56,720	)		65,308
Foreign currency bonds		34,450		23			—			—		(32,628	)		1,845
Equity securities		2,676,601		(119,400	)		116,279			392,695		(795,828	)		2,270,347
Beneficiary certificates		48,117		—			(20	)		100		(31,988	)		16,209
Others		29,694		1,278			—			65,478		(2,810	)		93,640
Financial liabilities:
Financial liabilities held for trading
Derivative liabilities
Interest rate derivatives		9,785		3,206			—			—		(182	)		12,809
Currency derivatives		—		(10	)		—			10		—			—
Stock derivatives		160,040		188,261			—			204,829		(150,191	)		402,939
Credit derivatives		3,421		11,884			—			1,047		(2,101	)		14,251
Commodity derivatives		10,547		2,204			—			2,833		(9,367	)		6,217
Financial liabilities designated at FVTPL
Borrowings		1,766,213		(369,611	)		—			2,120,144		(619,195	)		2,897,551

All recognized gains and losses on current period are related to the holding assets and liabilities of current and previous period-end. Gain and loss recognized in net income are included in gain and loss on financial assets at FVTPL and AFS financial assets, respectively.

(4) Fair value and carrying amount of financial assets and liabilities that are recorded at amortized cost are as follows (Unit: Korean Won in millions):

	June 30, 2012				December 31, 2011
	Fair value		Book value		Fair value		Book value
Financial assets:
HTM financial assets		19,266,553		19,059,506		20,323,593		20,036,128
Loans and receivables		245,257,489		243,395,626		236,723,318		235,159,956
Financial liabilities:
Deposits due to customers		203,633,203		203,563,078		195,908,985		195,930,482
Borrowings		33,716,125		33,672,120		34,491,299		34,666,709
Debentures		29,068,777		28,664,705		30,857,257		29,265,833
Other financial liabilities		17,083,046		17,094,856		19,071,984		19,083,709

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12. Investments in Jointly Controlled Entities and Associates

(1) Investments in jointly controlled entities and associates accounted for using the equity method are as follows (Unit: Korean Won in millions):

				June 30, 2012				December 31, 2011
Subsidiaries	Capital		Main business	Number of shares owned		Percentage of owner- ship (%)		Number of shares owned		Percentage of owner- ship (%)
Woori Finance Holdings:
Woori Aviva Life Insurance Co., Ltd. (*1)		73,700	Life insurance		7,601,091		51.6		7,601,091		51.6
Woori Bank, Kyongnam Bank, Kwangju Bank, Woori Financial, Woori Investment & Securities and Woori Private Equity Fund:
Woori Blackstone Korea Opportunity Private Equity Fund I		351,500	Finance		156,600		44.6		156,600		44.6
Woori Bank, Kyongnam Bank and Kwangju Bank:
Korea Credit Bureau Co., Ltd. (*2)		10,000	Credit information		180,000		9.0		180,000		9.0
Woori Bank:
Korea Finance Security Co., Ltd. (*2)		6,000	Security service		183,870		15.3		183,870		15.3
Woori Service Networks Co., Ltd. (*2)		500	Freight & staffing services		4,704		4.9		4,704		4.9
Kumho Tire Co., Inc. (*3)		631,300	Manufacturing		22,514,800		17.8		22,514,800		21.2
United PF 1st Corporate Financial Stability (*4)		800,000	Finance		148,000		18.5		148,000		18.5
LIG E&C Co., Ltd. (*5)		16,300	Construction		755,946		23.2		755,946		23.2
Hyunjin Co., Ltd. (*5)		38,400	”		1,667,600		21.7		1,667,600		21.7
Chin Hung International Inc. (*5)		225,100	”		125,052,000		27.8		—		—
Pi City Co., Ltd. (*5)		20,600	”		871,631		21.1		—		—
Woori F&I:
Woori SB Fifth Asset Securitization Specialty		2,900	Asset securitization		171,456		30.0		171,456		30.0
Woori SB Eleventh Asset Securitization Specialty		500	”		40,527		45.0		40,527		45.0
Woori SB Twelfth Asset Securitization Specialty		1,000	”		101,544		40.0		101,544		40.0
Woori BC Pegasus Asset Securitization Specialty		9,700	”		581,580		30.0		581,580		30.0
Woori Stream Third Asset Securitization Specialty (*7)		1,500	”		—		—		120,472		40.0
Woori Stream Fourth Asset Securitization Specialty		1,600	”		125,808		40.0		125,808		40.0
Woori HB First Asset Securitization Specialty		50	”		3,712		40.0		3,712		40.0
Woori Piastone Bridge Asset Securitization Specialty		10	”		22,336		40.0		22,336		40.0
Woori EA First Asset Securitization Specialty		100	”		8,000		40.0		8,000		40.0
Woori EA Second Asset Securitization Specialty		100	”		8,000		40.0		8,000		40.0
Woori EA Sixth Asset Securitization Specialty		100	”		8,000		40.0		8,000		40.0
Woori EA Seventh Asset Securitization Specialty		60	”		5,652		45.0		5,652		45.0
Woori EA Ninth Asset Securitization Specialty		100	”		8,000		40.0		8,000		40.0
Woori EA Eleventh Asset Securitization Specialty		2,600	”		50,995		45.0		50,995		45.0
Woori EA Sixteen Asset Securitization Specialty (*6)		300	”		18,900		30.0		—		—
CW Two Partners Co., Ltd. (*7)		100	”		—		—		12,999		50.0 -1share
KAMCO Fifth Asset Securitization Specialty		25,700	”		87,013		24.0		87,013		24.0
KAMCO Sixth Asset Securitization Specialty		2,400	”		212,553		45.0		212,553		45.0

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				June 30, 2012				December 31, 2011
Subsidiaries	Capital		Main business	Number of shares owned		Percentage of owner- ship (%)		Number of shares owned		Percentage of owner- ship (%)
KAMCO Seventh Asset Securitization Specialty		200	”		51,417		45.0		51,417		45.0
Woori Fine First Asset Securitization Specialty		1,300	Asset securitization		135,900		45.0		135,900		45.0
Chungdo Woori Century Security Corp., Ltd.		16,500	Other financial business		49,987,530		49.5		49,987,530		49.5
Woori Private Equity Fund:
Phoenix Digital Tech Co., Ltd.		5,500	Semiconductor equipment		500,000		50.0		500,000		50.0
Woori Renaissance Holdings (*1)		20	Other financial business		1,260		51.6		1,260		51.6
Bonghwang Semiconductor Yuhan Gongsa (*10)		39,400	Semiconductor packaging		—		30.0		—		30.0
MARS First:
Sempio Foods Co., Ltd. (*8)		4,400	Food & beverages manufacturing		—		—		1,465,446		33.0
MARS Second:
Seoul Lakeside Co., Ltd. (*9,10)		1,200	Hotel		55,860		47.5		76,000		47.5

(*1) Woori Aviva Life Insurance Co. Ltd. is accounted for using the equity method as the investee subject to joint control in accordance with the joint agreement with Aviva International Holdings Limited (“Aviva”), decision making on operating, investment and financing activities are made by the board members whom the Company and Aviva can have rights to appoint half of the board of directors, respectively. Woori Renaissance Holdings is accounted for using the equity method as the investee subject to joint control in accordance with the joint agreement between Woori Private Equity Fund and Woori Renaissance Private Equity Fund, by contractual commitment, respectively.

(*2) Woori Bank, a subsidiary of the Company, can exercise the significant influence over Korea Credit Bureau Co., Ltd. and Korea Finance Security Co., Ltd. Important transactions of Woori Service Network Co., Ltd. are mainly arranged with Woori Bank.

(*3) The ownership interest in Kumho Tire Co., Inc. has decreased due to disproportionate increase in paid-in capital for the six months ended June 30, 2012. However, Woori Bank has significant influence because it has potential voting rights on Kumho Tire Co., Inc. which are estimated about 20.7% when exercised. But, the ownership interest has decreased due to disproportionate increase in paid-in capital.

(*4) Woori Bank has significant influence by participating as limited partnership of United PF 1st Corporate Financial Stability (“United PF”) on the decision making of board of investment deliberation which is a major operating decision making organization. In addition, there exists a significant transaction relationship between United PF and Woori Bank.

(*5) Woori Bank acquired 755,946 shares (equity: 23.2%) of LIG E&C Co., Ltd., 1,667,600 shares (equity: 21.7%) of Hyunjin Co. Ltd. for the year ended December 31, 2011 and 871,631 shares (equity: 21.1%) of Pi City Co. Ltd. for the six months June 30, 2012 by using debt to equity swap. Book value of those securities was written down to nil at acquisition date and therefore, there was no value recorded on as of December 31, 2011 and June 30, 2012. Woori Bank holds 125,052,000 shares (ownership: 27.8%) of Chin Hung International Inc. by using debt to equity swap for the six months as of June 30, 2012.

(*6) Acquired 30% ownership of Woori EA Sixteenth Asset Securitization Specialty for the six months ended June 30, 2012.

(*7) Investee is liquidated for the six months ended June 30, 2012.

(*8) The Group has lost its significant influence after disposition of part of investment in Sempio Foods Co., Ltd.

(*9) The investees decreased their capital, resulting in a decrease in number of shares owned.

(*10) Financial statements as of March 31, 2012 of Bonghwang Semiconductor Yuhan Gongsa and Seoul Lakeside Co., Ltd. and there is no significant effect due to transactions and events which has been occurred subsequent to March 31, 2012.

- 33 -

(2) Changes in carrying value of investments in jointly controlled entities and associates accounted for using the equity method are as follows (Unit: Korean Won in millions):

	For the six months ended June 30, 2012
	Acquisition cost		January 1, 2012		Gain (loss) on valuation			Acquisi- tion		Disposi- tion			Dividends			Capital			Other change			June 30, 2012
Woori Aviva Life Insurance Co., Ltd.		110,098		114,858		89			—		—			—			5,138			—			120,085
Woori Blackstone Korea Opportunity First		156,600		159,631		6,794			—		—			—			—			—			166,425
Korea Credit Bureau		4,500		3,912		228			—		—			—			(264	)		—			3,876
Korea Finance Security Co., Ltd.		758		3,468		200			—		—			(55	)		—			—			3,613
Woori Service Networks Co., Ltd.		24		98		2			—		—			(7	)		—			—			93
Kumho Tire Co., Inc. (*1)		113,204		111,357		16,500			—		—			—			(9,869	)		24,702			142,690
United PF 1st Corporate Financial Stability		148,000		149,099		5,185			—		—			—			—			—			154,284
Chin Hung International Inc. (*1)		60,275		—		(525	)		60,275		—			—			—			—			59,750
Woori SB Fifth Asset Securitization Specialty		1,823		981		28			—		—			—			—			—			1,009
Woori SB Eleventh Asset Securitization Specialty		2,026		811		(17	)		—		—			—			—			—			794
Woori SB Twelfth Asset Securitization Specialty		3,877		3,954		32			—		(1,200	)		—			—			—			2,786
Woori BC Pegasus Asset Securitization Specialty (*2)		2,908		—		(664	)		—		—			—			—			664			—
Woori Stream Third Asset Securitization Specialty		2,664		949		29			—		(978	)		—			—			—			—
Woori Stream Fourth Asset Securitization Specialty		1,250		505		203			—		—			—			—			—			708
Woori HB First Asset Securitization Specialty		186		939		—			—		—			(753	)		—			—			186
Woori Piastone Bridge Asset Securitization Specialty		40		1,136		208			—		(1,077	)		—			—			—			267
Woori EA First Asset Securitization Specialty (*2)		400		—		196			—		—			—			—			(196	)		—
Woori EA Second Asset Securitization Specialty (*2)		400		—		(207	)		—		—			—			—			207			—
Woori EA Sixth Asset Securitization Specialty (*2)		400		—		457			—		—			(203	)		—			(254	)		—
Woori EA Seventh Asset Securitization Specialty		1,611		2,227		301			—		—			(223	)		—			—			2,305
Woori EA Ninth Asset Securitization Specialty		400		3,660		585			—		—			(2,364	)		—			—			1,881
Woori EA Eleventh Asset Securitization Specialty		9,905		10,901		3,125			—		—			(549	)		—			—			13,477
Woori EA Sixteen Asset Securitization Specialty		5,400		—		(287	)		5,400		—			—			(1	)		—			5,112
CW Two Partners Co., Ltd.		605		6		(1	)		—		(5	)		—			—			—			—
KAMCO Fifth Asset Securitization Specialty		8,736		13,658		2,189			—		—			—			—			—			15,847
KAMCO Sixth Asset Securitization Specialty		5,314		7,183		(5	)		—		—			(1,693	)		—			—			5,485
KAMCO Seventh Asset Securitization Specialty		390		1,089		20			—		—			—			(900	)		—			209
Woori Fine First Asset Securitization Specialty		13,447		17,485		591			—		(2,250	)		(639	)		—			—			15,187
Chungdo Woori Century Security Corp.		8,187		9,418		20			—		—			—			(49	)		—			9,389
Phoenix Digital Tech Co., Ltd.		10,459		—		—			—		—			—			—			—			—
Woori Renaissance Holdings		63,000		32,516		1,260			—		—			—			578			—			34,354
Bonghwang Semiconductor Yuhan Gongsa		11,905		12,001		(202	)		—		—			—			361			—			12,160
Sempio Foods Company		6,810		54,260		—			—		(45,167	)		(366	)		(804	)		(7,923	)		—
Seoul Lakeside Co., Ltd.		198,450		212,131		5,433			—		(71,247	)		—			—			—			146,317
Total		954,052		928,233		41,767			65,675		(121,924	)		(6,852	)		(5,810	)		17,200			918,289

- 34 -

	For the year ended December 31, 2011
	Acquisition cost		January 1, 2011		Gain (loss) on valuation			Acquisi- tion		Disposi- tion			Dividends			Capital			Other change			December 31, 2011
Woori Aviva Life Insurance Co., Ltd.		110,098		104,158		2,744			—		—			—			3,857			4,099			114,858
Woori Blackstone Korea Opportunity First		156,600		50		5,681			153,900		—			—			—			—			159,631
Korea Credit Bureau		4,500		3,454		458			—		—			—			—			—			3,912
BC Card Co., Ltd.		11,668		147,564		—			—		(91,919	)		—			(24,788	)		(30,857	)		—
Korea Finance Security Co., Ltd.		758		3,436		87			—		—			(55	)		—			—			3,468
Woori Service Networks Co., Ltd.		24		104		6			—		—			(12	)		—			—			98
Kumho Tire Co., Inc. (*1)		113,204		113,204		(12,952	)		—		—			—			(3,560	)		14,665			111,357
United PF 1st Corporate Financial Stability		148,000		—		1,099			148,000		—			—			—			—			149,099
Woori SB Fifth Asset Securitization Specialty		3,773		1,008		(27	)		—		—			—			—			—			981
Woori SB Eighth Asset Securitization Specialty		2,787		1,218		76			—		(1,294	)		—			—			—			—
Woori SB Ninth Asset Securitization Specialty		1,907		1,723		13			—		(161	)		—			(1,575	)		—			—
Woori SB Eleventh Asset Securitization Specialty		5,176		4,545		(89	)		—		—			(495	)		(3,150	)		—			811
Woori SB Twelfth Asset Securitization Specialty		5,477		5,016		47			—		—			(709	)		(400	)		—			3,954
Woori BC Pegasus Asset Securitization Specialty (*2)		2,908		—		(2,462	)		—		—			—			—			2,462			—
Woori Stream Third Asset Securitization Specialty		2,664		1,354		195			—		—			—			(600	)		—			949
Woori Stream Fourth Asset Securitization Specialty		3,650		716		(11	)		—		—			—			(200	)		—			505
Woori HB First Asset Securitization Specialty		186		367		1,288			—		—			(716	)		—			—			939
Woori Piastone Bridge Asset Securitization Specialty		2,717		3,598		290			—		—			(1,152	)		(1,600	)		—			1,136
Woori EA First Asset Securitization Specialty (*2)		400		—		(840	)		—		—			(355	)		—			1,195			—
Woori EA Second Asset Securitization Specialty (*2)		400		899		20			—		—			(1,205	)		—			286			—
Woori EA Sixth Asset Securitization Specialty (*2)		400		—		(53	)		—		—			(110	)		—			163			—
Woori EA Seventh Asset Securitization Specialty		1,611		1,966		532			—		—			(271	)		—			—			2,227
Woori EA Ninth Asset Securitization Specialty		400		384		4,226			—		—			(950	)		—			—			3,660
Woori EA Eleventh Asset Securitization Specialty		9,905		—		1,000			9,905		—			—			(4	)		—			10,901
CW Two Partners Co., Ltd.		605		134		(128	)		—		—			—			—			—			6
Woori F&I Fifteenth Asset Securitization Specialty		1		566		3,110			—		—			(4,281	)		—			605			—
KAMCO Fifth Asset Securitization Specialty		8,736		10,764		(960	)		—		—			—			—			3,854			13,658
KAMCO Sixth Asset Securitization Specialty		5,314		6,566		1,741			—		—			(1,124	)		—			—			7,183
KAMCO Seventh Asset Securitization Specialty		1,285		1,210		352			—		—			(473	)		—			—			1,089
Woori Tomato Second Asset Securitization Specialty		1		—		3,201			—		—			(1,912	)		—			(1,289	)		—
Woori Fine First Asset Securitization Specialty		15,697		15,647		2,394			—		—			(556	)		—			—			17,485
Hiking-Woori Capital		230		209		(8	)		—		(189	)		—			(12	)		—			—
Woori-Consus Capital		203		—		(371	)		—		—			—			(63	)		434			—
Chungdo Woori Century Security Corp.		8,187		8,644		256			—		—			—			518			—			9,418
Phoenix Digital Tech Co., Ltd.		10,459		8,833		(14,236	)		—		—			—			5,403			—			—
Woori Renaissance Holdings		63,000		55,915		(23,399	)		—		—			—			—			—			32,516
Bonghwang Semiconductor Yuhan Gongsa		11,905		12,178		105			—		—			—			(282	)		—			12,001
Sempio Foods Company		26,578		37,767		17,248			—		—			(333	)		(428	)		6			54,260
Seoul Lakeside Co., Ltd.		270,000		191,647		26,067			—		—			(5,700	)		—			117			212,131
Total		1,011,414		744,844		16,700			311,805		(93,563	)		(20,409	)		(26,884	)		(4,260	)		928,233

- 35 -

(*1) The market value of the proportionate of the Woori Bank ownership interest in Kumho Tire Co. Inc. is 345 billion Won and 234 billion Won as of June 30, 2012 and December 31, 2011, respectively. The market value of the proportionate of the Woori Bank ownership interest in Chin Hung International Inc. is 139 billion Won as of June 30, 2012.

(*2) Valuation of the investments in associates which accounted for using equity method account is discontinued since the associates has recorded accumulated deficits in equity. As therefore, the amount of accumulated deficits is deducted from loans which is related to respective associates.

(3) If the Group’s share of losses of an investee equals or exceeds its interest in the investee, the Group discontinues recognizing its share of further loss. Unrecognized loss is for the six months ended June 30, 2012 are as follows (Unit: Korean Won in millions):

	Unrecognized loss			Unrecognized changes in equity
Phoenix Digital Tech Co., Ltd.		(6,225	)		—

(4) Financial information of investments in jointly controlled entities and associates accounted for using the equity method are as follows (Unit: Korean Won in millions):

	June 30, 2012
	Assets		Liabilities		Operating revenue			Net income
Woori Aviva Life Insurance Co., Ltd.		3,537,014		3,370,282		705,101			1,830
Woori Blackstone Korea Opportunity First		374,586		1,000		18,079			15,160
Korea Credit Bureau		50,570		9,223		22,822			3,676
Korea Finance Security Co., Ltd.		25,058		1,481		19,009			1,584
Woori Service Networks Co., Ltd.		3,408		1,527		5,818			412
Kumho Tire Co., Inc.		4,782,110		4,041,653		2,164,732			88,057
United PF 1st Corporate Financial Stability		872,160		38,192		48,553			28,026
Chin Hung International Inc.		622,150		483,737		197,322			(49,769	)
Woori SB Fifth Asset Securitization Specialty		3,379		16		160			93
Woori SB Eleventh Asset Securitization Specialty		1,790		23		8			(37	)
Woori SB Twelfth Asset Securitization Specialty		7,034		70		228			80
Woori BC Pegasus Asset Securitization Specialty		23,822		40,521		32			(2,215	)
Woori Stream Fourth Asset Securitization Specialty		2,026		257		555			508
Woori HB First Asset Securitization Specialty		465		2		12			(1	)
Woori Piastone Bridge Asset Securitization Specialty		685		14		824			520
Woori EA First Asset Securitization Specialty		81,009		87,546		4,491			490
Woori EA Second Asset Securitization Specialty		11,492		12,726		568			(518	)
Woori EA Sixth Asset Securitization Specialty		25,663		25,746		4,498			1,142
Woori EA Seventh Asset Securitization Specialty		10,096		4,972		711			669
Woori EA Ninth Asset Securitization Specialty		27,349		22,647		3,213			1,462
Woori EA Eleventh Asset Securitization Specialty		67,208		37,261		11,759			6,944
Woori EA Sixteen Asset Securitization Specialty		167,984		150,944		3,843			(955	)
KAMCO Fifth Asset Securitization Specialty		72,517		40,169		5,884			4,468
KAMCO Sixth Asset Securitization Specialty		14,711		2,511		156			(10	)
KAMCO Seventh Asset Securitization Specialty		577		102		65			45
Woori Fine First Asset Securitization Specialty		33,961		203		2,478			1,314
Chungdo Woori Century Security Corp.		22,314		3,350		1,848			41
Phoenix Digital Tech Co., Ltd.		31,588		44,038		(343	)		(1,463	)
Woori Renaissance Holdings		101,184		33,828		3,333			1,956
Bonghwang Semiconductor Yuhan Gongsa		77,771		39,440		(267	)		(452	)
Seoul Lakeside Co., Ltd.		98,449		129,256		50,408			11,441

- 36 -

	December 31, 2011
	Assets		Liabilities		Operating revenue			Net income
Woori Aviva Life Insurance Co., Ltd.		3,162,593		3,007,653		11,829			7,460
Woori Blackstone Korea Opportunity First		358,946		750		17,971			12,608
Korea Credit Bureau		51,484		9,650		41,409			6,380
Korea Finance Security Co., Ltd.		24,446		1,812		42,790			1,069
Woori Service Networks Co., Ltd.		3,541		1,552		11,492			697
Kumho Tire Co., Inc.		4,634,196		4,112,068		3,946,765			(39,354	)
United PF 1st Corporate Financial Stability		836,104		30,162		48,117			5,942
Woori SB Fifth Asset Securitization Specialty		3,616		347		11			(89	)
Woori SB Eleventh Asset Securitization Specialty		1,824		20		126			(198	)
Woori SB Twelfth Asset Securitization Specialty		9,902		18		231			117
Woori BC Pegasus Asset Securitization Specialty		25,050		39,534		119			(8,208	)
Woori Stream Third Asset Securitization Specialty		2,399		24		675			488
Woori Stream Fourth Asset Securitization Specialty		1,519		258		86			(27	)
Woori HB First Asset Securitization Specialty		2,351		5		3,478			3,220
Woori Piastone Bridge Asset Securitization Specialty		3,984		1,142		1,000			725
Woori EA First Asset Securitization Specialty		80,666		87,692		6,048			(3,934	)
Woori EA Second Asset Securitization Specialty		13,029		13,745		3,337			50
Woori EA Sixth Asset Securitization Specialty		42,287		43,004		15,068			(133	)
Woori EA Seventh Asset Securitization Specialty		10,119		5,170		5,114			1,182
Woori EA Ninth Asset Securitization Specialty		39,541		30,391		22,338			10,564
Woori EA Eleventh Asset Securitization Specialty		125,608		101,386		16,154			2,222
CW Two Partners Co., Ltd.		190		177		488			(255	)
KAMCO Fifth Asset Securitization Specialty		66,794		38,913		1,489			(6,274	)
KAMCO Sixth Asset Securitization Specialty		20,240		4,268		7,027			3,869
KAMCO Seventh Asset Securitization Specialty		2,437		7		1,186			781
Woori Fine First Asset Securitization Specialty		40,120		1,257		6,808			5,319
Chungdo Woori Century Security Corp.		20,843		1,822		2,796			516
Phoenix Digital Tech Co., Ltd.		51,016		55,852		(700	)		(13,823	)
Woori Renaissance Holdings		99,240		33,842		(38,772	)		(41,338	)
Bonghwang Semiconductor Yuhan Gongsa		531,387		320,920		700			842
Sempio Foods Company		238,938		74,573		173,443			28,915
Seoul Lakeside Co., Ltd.		231,361		111,558		48,170			7,859

- 37 -

(5) The entity excluded from associates although it’s percentage of ownership is higher than 20% as of June 30, 2012 and December 31, 2011 is as follows (Unit: Korean Won in millions):

	Number of shares owned		Ownership (%)
Vogo II-2 Investment Holdings Co., Ltd. (*)		24,187,282,362		34.6	%

(*) 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%.

13. Investment Properties

(1) Investment properties are as follows (Unit: Korean Won in millions):

	June 30, 2012			December 31, 2011
Acquisition cost		518,400			514,819
Accumulated depreciation		(18,458	)		(15,820	)
Net carrying value		499,942			498,999

(2) Changes in investment properties are as follows (Unit: Korean Won in millions):

	For the six months  ended June 30, 2012			For the year ended December  31, 2011
Beginning balance		498,999			643,271
Acquisition		253			1,356
Capital expenditure		2,067			—
Disposition		—			(144,097	)
Depreciation		(2,647	)		(6,462	)
Impairment loss		(126	)		(2,212	)
Transfer		1,396			(6,464	)
Foreign currencies translation adjustments		—			11
Others		—			13,596
Ending balance		499,942			498,999

(3) Fair value of investment properties is 557,937 million Won and 554,722 million Won as of June 30, 2012 and December 31, 2011, respectively.

(4) Rental fees earned from investment properties are 5,391 million Won and 7,678 million Won as of June 30, 2012 and 2011, respectively.

14. Premises and Equipment

(1) Premises and equipment are as follows (Unit: Korean Won in millions):

	June 30, 2012
	Land		Building			Properties for business use			Structures in leased office			Construction in progress		Structures			Total
Acquisition cost		1,826,065		1,007,615			1,451,004			355,055			10,964		20			4,650,723
Accumulated depreciation		—		(76,059	)		(1,119,830	)		(288,588	)		—		(14	)		(1,484,491	)
Net carrying value		1,826,065		931,556			331,174			66,467			10,964		6			3,166,232

- 38 -

	December 31, 2011
	Land		Building			Properties for business use			Structures in leased office			Construction in progress		Structures			Total
Acquisition cost		1,828,009		990,772			1,392,065			331,517			4,433		20			4,546,816
Accumulated depreciation		—		(60,434	)		(1,075,775	)		(276,122	)		—		(13	)		(1,412,344	)
Net carrying value		1,828,009		930,338			316,290			55,395			4,433		7			3,134,472

(2) Changes in premises and equipment are as follows (Unit: Korean Won in millions):

	For the six months ended June 30, 2012
	Land			Building			Properties for business use			Structures in leased office			Construction in progress			Structures			Total
Beginning balance		1,828,009			930,338			316,290			55,395			4,433			7			3,134,472
Acquisition		3,674			19,144			77,839			23,248			11,440			—			135,345
Disposition or transfer		(4,024	)		(3,795	)		(1,252	)		(780	)		(980	)		—			(10,831	)
Depreciation		—			(15,773	)		(65,314	)		(13,734	)		—			—			(94,821	)
Foreign currencies translation adjustment		(2	)		(39	)		(22	)		(19	)		25			—			(57	)
Others		(1,592	)		1,681			3,633			2,357			(3,954	)		(1	)		2,124
Ending balance		1,826,065			931,556			331,174			66,467			10,964			6			3,166,232

	For the year ended December 31, 2011
	Land			Building			Properties for business use			Structures in leased office			Construction in progress			Structures		Total
Beginning balance		1,815,070			931,419			298,686			49,792			2,404			7		3,097,378
Acquisition		7,261			33,575			159,367			30,224			20,958			—		251,385
Disposition or transfer		(21,491	)		(6,284	)		(5,861	)		(791	)		(18,929	)		—		(53,356	)
Depreciation		—			(29,141	)		(119,017	)		(23,813	)		—			—		(171,971	)
Impairment loss		—			(59	)		—			—			—			—		(59	)
Classified to assets held for sale		(1,482	)		(1,123	)		—			—			—			—		(2,605	)
Foreign currencies translation adjustment		15			(81	)		336			178			—			—		448
Others		28,636			2,032			(17,221	)		(195	)		—			—		13,252
Ending balance		1,828,009			930,338			316,290			55,395			4,433			7		3,134,472

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15. Intangible Assets and Goodwill

(1) Intangible assets are as follows (Unit: Korean Won in millions):

	June 30, 2012
	Goodwill			Core deposit			Software			Industrial rights			Development cost			Others			Membership deposit			Total
Acquisition cost		151,138			14,312			138,150			381			194,799			397,650			71,551			967,981
Accumulated depreciation		—			(4,540	)		(95,219	)		(204	)		(129,452	)		(260,819	)		—			(490,234	)
Accumulated impairment losses		(43,749	)		—			—			—			—			—			(7,796	)		(51,545	)
Net carrying value		107,389			9,772			42,931			177			65,347			136,831			63,755			426,202

	December 31, 2011
	Goodwill			Core deposit			Software			Industrial rights			Development cost			Others			Membership deposit			Total
Acquisition cost		151,138			14,310			124,917			350			183,492			389,527			70,549			934,283
Accumulated depreciation		—			(3,763	)		(87,198	)		(185	)		(117,911	)		(231,864	)		—			(440,921	)
Accumulated impairment losses		(42,725	)		—			—			—			—			(2,106	)		(640	)		(45,471	)
Net carrying value		108,413			10,547			37,719			165			65,581			155,557			69,909			447,891

(2) Changes in intangible assets are as follows (Unit: Korean Won in millions):

	For the six months ended June 30, 2012
	Goodwill			Core deposit			Software			Industrial rights			Development cost			Others			Membership deposit			Total
Beginning balance		108,413			10,547			37,719			165			65,581			155,557			69,909			447,891
Acquisition		—			—			12,142			31			11,318			7,895			2,699			34,085
Disposition		—			—			—			—			—			(54	)		(1,519	)		(1,573	)
Amortization		—			(773	)		(6,923	)		(19	)		(11,551	)		(28,334	)		—			(47,600	)
Impairment loss		(1,024	)		—			—			—			—			—			(5,808	)		(6,832	)
Foreign currencies translation adjustment		—			(2	)		1			—			(1	)		17			29			44
Others		—			—			(8	)		—			—			1,750			(1,555	)		187
Ending balance		107,389			9,772			42,931			177			65,347			136,831			63,755			426,202

	For the year ended December 31, 2011
	Goodwill			Core deposit			Software			Industrial rights			Development cost			Others			Membership deposit			Total
Beginning balance		78,060			922			28,703			150			69,751			49,294			68,256			295,136
Acquisition		39,284			10,915			21,507			49			19,342			164,999			5,881			261,977
Disposition		—			—			—			—			(18	)		(865	)		(2,607	)		(3,490	)
Amortization		—			(1,288	)		(12,111	)		(34	)		(22,991	)		(56,215	)		—			(92,639	)
Impairment loss		(8,925	)		—			—			—			—			(2,107	)		(1,507	)		(12,539	)
Foreign currencies translation adjustment		(6	)		(2	)		(2	)		—			2			33			(114	)		(89	)
Others		—			—			(378	)		—			(505	)		418			—			(465	)
Ending balance		108,413			10,547			37,719			165			65,581			155,557			69,909			447,891

- 40 -

16. Assets Held for Sale

Assets held for sale are as follows (Unit: Korean Won in millions):

	June 30, 2012		December 31, 2011
Investment properties		63,393		53,985
Premises and equipment		2,070		2,258
Total		65,463		56,243

17. Assets Subjected to Lien and Assets Acquired through Foreclosures

(1) Assets subjected to lien are as follows (Unit: Korean Won in millions):

		June 30, 2012
		Collateral given to	Amount		Reason for collateral
Due from banks		Samsung Securities and others		9,370	Deposits for futures margin and others
Financial assets at FVTPL	Financial institutions debt securities and others	Korea Securities Depository and others		10,644,766	Collateral repurchase agreement and others
AFS financial assets	Korean treasury and government agencies bonds	Nomura Securities and others		352,664	Related to bonds sold under repurchase agreements (*)
	Financial institutions debt securities and others	The Bank of Korea and others		1,680,964	Intraday overdrawn account and others
HTM financial assets	Korean treasury and government agencies bonds	Nomura Securities and others		1,026,316	Related to bonds sold under repurchase agreements (*)
	Korean treasury and government agencies bonds and others	The Bank of Korea and others		5,537,744	Limitation on total loan exposure and others
Loans		Postal Saving Bank of China and others		80,766	Collateral for borrowings
Land and building		Shinhan Card and others		92,819	Leasehold rights and others
		Total		19,425,409
		December 31, 2011
		Collateral given to	Amount		Reason for collateral
Due from banks		Credit-agricole Bank and others		161,855	Security on borrowings and others
Financial assets at FVTPL	Financial institutions debt securities and others	Korea Securities Depository and others		9,470,575	Collateral repurchase agreement and others
AFS financial assets	Korean treasury and government agencies bond	Nomura Securities and others		291,674	Related to bonds sold under repurchase agreements (*)
	Financial institutions debt securities and others	Bank of communications and others		654,109	Foreign currencies Long-term borrowings and others
HTM financial assets	Korean treasury and government agencies bonds	Nomura Securities and others		946,684	Related to bonds sold under repurchase agreements (*)
	Korean treasury and government agencies bonds and others	The Bank of Korea and others		6,608,480	Limitation on total loan exposure and others
Loans		Shinhan Bank and others		511,366	Collateral for borrowings
Land and building		Shinhan Card and others		93,220	Leasehold rights and others
		Total		18,737,963

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(*) The transferee can dispose and refurnish the securities.

(2) As of June 30, 2012 and December 31, 2011, asset acquired through a foreclosure is the building, whose carrying amounts are 64 million Won and 555 million Won, respectively

(3) Loaned securities are as follows (Unit: Korean Won in millions):

		June 30, 2012		December 31, 2011		Loaned to
Financial assets at FVTPL	Korean treasury and government agencies bonds		243,753		49,917	Korea Money Brokerage Corp. and others
AFS financial assets	Korean treasury and government agencies bonds		110,374		90,209	Korea Securities Depository and others
HTM financial assets	Korean corporates bonds		10,934		10,877	The Korea Securities Finance Corporation
	Total		365,061		151,003

(4) Collaterals held that can be disposed and re-subjected to lien regardless of defaults

Fair value of the collaterals held can be disposed and re-subjected to lien regardless of defaults as of June 30, 2012 and December 31, 2011 are as follows (Unit: Korean Won in millions):

	June 30, 2012
	Fair value of collateral		Fair value of the collaterals held were disposed and re-subjected to lien
Securities		1,924,894		105,826

	December 31, 2011
	Fair value of collateral		Fair value of the collaterals held were disposed and re-subjected to lien
Securities		735,101		111,247

18. Other Assets

Other assets are as follows (Unit: Korean Won in millions):

	June 30, 2012		December 31, 2011
Prepaid expenses		243,054		249,702
Advance payments		63,087		16,513
Leased assets		1,430		3,403
Non-operative assets		64		555
Others		13,861		106,886
Total		321,496		377,059

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19. Financial Liability at FVTPL

Financial liabilities at FVTPL consist of financial liabilities held for trading and financial liabilities designated at FVTPL.

(1) Financial liabilities held for trading are as follows (Unit: Korean Won in millions):

	June 30, 2012		December 31, 2011
Deposits due to Customers:
Gold banking liabilities		2,624		—
Borrowings:
Warrants in short position		5,030		10,309
Securities in short position		744,045		626,879
Sub-total		749,075		637,188
Derivative liabilities:
Interest rate derivatives		1,549,208		1,670,845
Currency derivatives		1,587,215		1,689,844
Stock derivatives		531,665		516,834
Credit derivatives		9,759		21,559
Commodity derivatives		40,326		25,753
Others		515		109
Sub-total		3,718,688		3,924,944
Total		4,470,387		4,562,132

(2) Financial liabilities designated at FVTPL are as follows (Unit: Korean Won in millions):

	June 30, 2012		December 31, 2011
Borrowings:
Equity linked securities in short position		6,356,515		4,634,724
Equity linked securities index in short position		78,331		102,483
Sub-total		6,434,846		4,737,207
Debentures:
Debentures in local currency		227,454		226,432
Debentures in foreign currencies		94,655		95,775
Sub-total		322,109		322,207
Total		6,756,955		5,059,414

(3) Credit risk adjustment to financial liabilities designated at FVTPL is as follows (Unit: Korean Won in millions):

	June 30, 2012			December 31, 2011
Financial liabilities designated at FVTPL subject to credit risk adjustments		6,756,955			5,059,414
Credit risk adjustments		(79,201	)		31,735
Accumulated changes in credit risk adjustments		(44,319	)		34,882

Credit risk adjustments are applied to reflect the Group’s own credit risk when measuring derivative liabilities at fair value. The methodology to determine the adjustment incorporates the Group’s credit spread as observed through credit rating.

- 43 -

(4) Financial liabilities at FVTPL’s carrying value and nominal value at maturity are as follows (Unit: Korean Won in millions):

	June 30, 2012			December 31, 2011
Carrying value		6,756,955			5,059,414
Nominal value at maturity		6,917,178			5,346,184
		(160,223	)		(286,770	)

20. Deposits due to Customers

(1) Deposits sorted by interest type are as follows (Unit: Korean Won in millions):

	June 30, 2012			December 31, 2011
Deposits in local currency
Demand deposits		16,116,200			13,704,296
Time deposits		168,166,932			163,162,643
Mutual installments		89,653			104,402
Deposits on notes payables		3,713,064			3,135,424
Deposits on CMA		1,933,322			2,136,820
Certificate of deposits		1,392,822			1,850,221
Other deposits		1,309,680			1,235,462
Sub-total		192,721,673			185,329,268
Deposits in foreign currencies		10,870,973			10,638,470
Present value discount		(29,568	)		(37,256	)
Total		203,563,078			195,930,482

(2) Deposits by customers are as follows (Unit: Korean Won in millions):

	June 30, 2012			December 31, 2011
Individual		67,701,150			66,285,132
Corporation		55,147,689			55,802,501
Banks		28,697,095			24,481,309
Government agencies		17,160,597			13,602,836
Other financial institutions		11,235,425			9,796,912
Government		6,653,905			9,931,364
Non-profit corporation		6,926,754			6,461,592
Educational organization		3,479,190			3,276,295
Foreign corporations		1,371,523			1,340,651
Others		5,219,318			4,989,146
Present value discount		(29,568	)		(37,256	)
Total		203,563,078			195,930,482

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21. Borrowings and Debentures

(1) Borrowings are as follows (Unit: Korean Won in millions):

	June 30, 2012
	Lenders	Average annual interest rate  (%)		Amount
Borrowings in local currency
Borrowings of the Bank of Korea	The Bank of Korea		1.5		757,596
Borrowings from government funds	Small and Medium Business Corporation and others		1.9		2,157,171
Others	NH Bank and others		3.2		7,144,844
Sub-total					10,059,611
Borrowings in foreign currencies
Borrowings in foreign currencies	Commerz Bank AG and others		1.2		11,979,580
Offshore borrowings in foreign currencies	KDB Bank and others		1.0		5,769
Sub-total					11,985,349
Bills sold	Others		3.1		170,262
Call money	Banks		2.9		2,559,307
Bonds sold under repurchase agreements	Mirae Asset Management and others				8,901,902
Present value discount					(4,311	)
Total					33,672,120
	December 31, 2011
	Lenders	Average annual interest rate (%)		Amount
Borrowings in local currency
Borrowings of the Bank of Korea	The Bank of Korea		1.5		1,089,170
Borrowings from government funds	Korea Environment Management Corporation		2.1		2,119,147
Others	Korea Finance Corporation and others		3.2		6,842,681
Sub-total					10,050,998
Borrowings in foreign currencies
Borrowings in foreign currencies	Wilshire State Bank and others		1.3		12,140,368
Offshore borrowings in foreign currencies	KDB Bank and others		1.0		5,767
Sub-total					12,146,135
Bills sold	Others		2.9		181,102
Call money	Banks		2.5		4,393,138
Bonds sold under repurchase agreements	Mirae Asset Management and others				7,898,553
Present value discount					(3,217	)
Total					34,666,709

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(2) Debentures are as follows (Unit: Korean Won in millions):

	June 30, 2012					December 31, 2011
	Interest rate (%)		Amount			Interest rate (%)		Amount
Face value of bond
Ordinary bonds		1.6 ~ 10.5		21,104,516			0.5 ~ 10.5		21,757,317
Subordinated bonds		4.2 ~ 10.3		7,436,691			4.5 ~ 10.3		7,316,553
Other bonds		—		200,827			—		244,892
Sub-total				28,742,034					29,318,762
Discounts on bond				(77,329	)				(52,929	)
Total				28,664,705					29,265,833

(3) Borrowings from financial institutions are as follows (Unit: Korean Won in millions):

	June 30, 2012
	Banks		Non-banks		Total
Borrowings in local currency		1,440,054		8,619,557		10,059,611
Borrowings in foreign currencies		7,016,078		4,969,271		11,985,349
Call money		1,189,507		1,369,800		2,559,307
Bonds sold under repurchase agreements		355,000		8,546,902		8,901,902
Total		10,000,639		23,505,530		33,506,169

	December 31, 2011
	Banks		Non-banks		Total
Borrowings in local currency		1,758,453		8,292,545		10,050,998
Borrowings in foreign currencies		6,694,915		5,451,220		12,146,135
Call money		1,276,638		3,116,500		4,393,138
Bonds sold under repurchase agreements		110,000		7,788,553		7,898,553
Total		9,840,006		24,648,818		34,488,824

22. Provision

(1) Provision is as follows (Unit: Korean Won in millions):

	June 30, 2012		December 31, 2011
Asset retirement obligation		24,192		20,662
Provision for guarantee (*1)		704,175		464,687
Provision for unused commitments		153,149		134,530
Provision for credit card points		7,094		1,387
Other provision (*2)		183,670		271,042
Total		1,072,280		892,308

(*1) Provisions for guarantee includes provision for financial guarantee of 251,359 million Won and 200,246 million Won as of June 30, 2012 and December 31, 2011, respectively.

(*2) Other provisions include provision for litigation.

- 46 -

(2) Changes in provisions except for asset retirement obligation are as follows (Unit: Korean Won in millions):

	For the six months ended June 30, 2012
	Provision for guarantee			Provision for unused commitment			Provision for credit card points			Other provision			Total
Beginning balance		464,687			134,530			1,387			271,042			871,646
Provisions provided		243,073			20,484			20,390			1,128			285,075
Provisions used and others		4,498			(39	)		(14,682	)		(46,611	)		(56,834	)
Reversal of unused amount		(8,083	)		(1,826	)		(1	)		(41,889	)		(51,799	)
Ending balance		704,175			153,149			7,094			183,670			1,048,088

	For the year ended December 31, 2011
	Provision for guarantee			Provision for unused commitment			Provision for credit card points			Other provision			Total
Beginning balance		309,721			168,239			11,421			245,716			735,097
Provisions provided		156,749			5,317			9,342			47,583			218,991
Provisions used and others		14,932			23			(19,360	)		(14,099	)		(18,504	)
Reversal of unused amount		(16,715	)		(39,049	)		(16	)		(8,158	)		(63,938	)
Ending balance		464,687			134,530			1,387			271,042			871,646

(3) Changes in details of asset retirement obligation are as follows (Unit: Korean Won in millions):

	For the six months ended June 30, 2012			For the year ended December 31, 2011
Beginning balance		20,662			25,958
Provisions provided		3,600			2,335
Provisions used		(348	)		(488	)
Depreciation		333			449
Reversal of unused amount		(1,584	)		(176	)
Increase (decrease) in restoration costs		1,529			(7,416	)
Ending balance		24,192			20,662

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23. Retirement Benefit Obligation

Employees and directors with one or more years of service are entitled to receive a payment upon termination of their employment, based on their length of service and rate of pay at the time of termination. The assets of the plans are measured at their fair value at the end of reporting date. Plan liabilities are measured using the projected unit method, which takes account of projected earnings increases, using actuarial assumptions that give the best estimate of the future cash flows that will arise under the plan liabilities.

(1) Retirement benefit obligation is as follows (Unit: Korean Won in millions):

	June 30, 2012			December 31, 2011
Projected retirement benefit obligation		464,655			365,714
Plan assets		(300,612	)		(246,010	)
Net liability recorded		164,043			119,704

(2) Changes in carrying value of projected retirement benefit obligation are as follows (Unit: Korean Won in millions):

	For the six months ended  June 30, 2012			For the year ended December  31, 2011
Beginning balance		365,714			227,729
Service cost		69,016			126,281
Interest cost		8,101			11,604
Actuarial loss		38,919			21,756
Foreign currencies translation adjustments		(49	)		103
Retirement benefit paid		(15,099	)		(20,476	)
Curtailment or settlement		(2,208	)		(1,565	)
Others		261			282
Ending balance		464,655			365,714

(3) Changes in plan assets are as follows (Unit: Korean Won in millions):

	For the six months ended  June 30, 2012			For the year ended December  31, 2011
Beginning balance		246,010			157,780
Expected return plan assets		7,436			8,211
Actuarial loss		(1,548	)		(2,037	)
Employer’s contributions		58,275			89,125
Retirement benefit paid		(8,097	)		(7,736	)
Curtailment or settlement		(2,055	)		(1,265	)
Others		(591	)		1,932
Ending balance		300,612			246,010

(4) Plan assets consist of mainly deposits which accounts for 89.39% and 93.59% of plan asset as of June 30, 2012 and December 31, 2011, respectively. Among plan asset, realized return on plan assets are 5,888 million Won and 6,174 million Won for the six months ended June 30, 2012 and for the year ended December 31, 2011, respectively.

- 48 -

(5) Past service cost, interest cost, expected return on plan asset, actuarial loss and loss on curtailment or settlement recognized in the consolidated statements of comprehensive income are as follows (Unit: Korean Won in millions):

	For the six months ended  June 30, 2012			For the year ended December  31, 2011
Past service cost		69,016			126,281
Interest cost		8,101			11,604
Expected return on plan assets		(7,436	)		(8,211	)
Actuarial loss		40,467			23,793
Loss on the curtailment or settlement		(41	)		(300	)
Total		110,107			153,167

(6) Actuarial assumptions used in projected retirement benefit obligation assessment are as follows:

	June 30, 2012	December 31, 2011
Discount rate	4.32%	4.76%
Inflation rate	2.30%	2.30%
Expected rate of return on plan assets	4.49%	4.49%
Future wage growth rate	5.31%	5.31%
Mortality rate	Issued by Korea Insurance Development Institute	Issued by Korea Insurance Development Institute

24. Other Financial Liabilities and Other Liabilities

Other financial liabilities and other liabilities are as follows (Unit: Korean Won in millions):

	June 30, 2012		December 31, 2011
Other financial liabilities:
Payables		7,694,477		7,431,428
Accrued expenses		3,213,522		3,374,174
Borrowings from trust accounts		2,932,126		2,485,088
Refundable lease deposits		190,847		184,886
Agency business revenue		339,238		211,227
Foreign exchange payables		608,211		696,505
Domestic exchange payables		293,150		3,109,576
Miscellaneous liabilities		1,823,285		1,590,825
Sub-total		17,094,856		19,083,709
Other liabilities:
Income in advance		219,074		264,121
Other miscellaneous liabilities		264,371		305,662
Sub-total		483,445		569,783
Total		17,578,301		19,653,492

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25. Derivatives

(1) Derivative assets and derivative liabilities are as follows (Unit: Korean Won in millions):

	June 30, 2012
			Assets								Liabilities
	Nominal amount		Fair value hedge		Cashflow hedge		Foreign hedge		For trading		Fair value hedge		Cashflow hedge		Foreign hedge		For trading
Interest rate:
Interest rate swap		156,498,666		317,411		223		—		1,396,514		9,127		20,178		—		1,526,116
Interest rate futures		104,680		—		—		—		—		—		—		—		—
Long interest options		2,445,000		—		—		—		32,285		—		—		—		—
Short interest options		2,170,332		—		—		—		—		—		—		—		23,092
Currency:
Currency forwards		52,672,860		124		—		987		806,213		99		—		5,306		361,088
Currency swaps		25,586,679		—		—		—		903,375		—		—		—		1,213,422
Currency futures		857,759		—		—		—		—		—		—		—		—
Long option		1,342,964		—		—		—		280,515		—		—		—		—
Short option		1,390,058		—		—		—		—		—		—		—		12,705
Stock Index:
Stock index futures		20,762		—		—		—		—		—		—		—		—
Long stock		750,744		—		—		—		161,954		—		—		—		—
Short stock		1,251,315		—		—		—		—		—		—		—		355,266
Stock index swaps		—		—		—		—		42,424		—		—		—		176,399
Others:
Long option		435,798		—		—		—		20,908		—		—		—		—
Short option		447,281		—		—		—		—		—		—		—		18,021
Other forwards		54,943		—		—		—		1,860		—		—		—		1,850
Other swaps		28,796		—		—		—		28,796		—		—		—		30,213
Other futures		361		—		—		—		303		—		—		—		516
Total		246,058,998		317,535		223		987		3,675,147		9,226		20,178		5,306		3,718,688

- 50 -

	December 31, 2011
			Assets								Liabilities
	Nominal amount		Fair value hedge		Cashflow hedge		Foreign hedge		For trading		Fair value hedge		Cashflow hedge		Foreign hedge		For trading
Interest rate:
Interest rate swap		176,817,515		326,005		—		—		1,516,621		348		23,978		—		1,639,921
Interest rate futures		298,253		—		—		—		—		—		—		—		—
Long interest options		2,445,000		—		—		—		36,254		—		—		—		—
Short interest options		2,771,136		—		—		—		—		—		—		—		30,924
Currency:
Currency forwards		40,801,384		—		—		835		836,348		—		—		9,167		347,213
Currency swaps		27,832,325		—		—		—		973,215		—		—		—		1,315,693
Currency futures		1,086,199		—		—		—		—		—		—		—		—
Long option		1,957,680		—		—		—		396,268		—		—		—		—
Short option		1,890,912		—		—		—		—		—		—		—		26,938
Stock Index:
Stock index futures		18,946		—		—		—		—		—		—		—		—
Long stock		740,808		—		—		—		59,092		—		—		—		—
Short stock		1,281,750		—		—		—		—		—		—		—		262,981
Stock index swaps		2,396,314		—		—		—		36,441		—		—		—		253,853
Others:
Long option		234,408		—		—		—		17,771		—		—		—		—
Short option		239,000		—		—		—		—		—		—		—		11,911
Other forwards		10,516		—		—		—		239		—		—		—		253
Other swaps		157,937		—		—		—		27,648		—		—		—		35,148
Other futures		299		—		—		—		—		—		—		—		109
Total		260,980,382		326,005		—		835		3,899,897		348		23,978		9,167		3,924,944

Derivatives held for trading purpose are classified into financial assets on liabilities at FVTPL and derivatives for hedging are stated as a separate line item in the consolidated statements of financial position (see Notes 7 and 19).

(2) Gains or losses on valuation of derivatives applied hedge accounting are as follows (Unit: Korean Won in millions):

	For the six months ended June 30
	2012			2011
Gains or losses from hedged items		(1,345	)		(15,597	)
Gains or losses from hedging instruments		(344	)		(3,704	)
Ineffective gains and losses of foreign hedging activities		376			2,605

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26. Day 1 Profit and Loss

Changes in details of deferred day 1 profit and loss are as follows (Unit: Korean Won in millions):

	For the six months ended June 30, 2012			For the year ended December 31, 2011
Beginning balance		54,732			30,869
Recognition form new transactions
Financial assets at FVTPL		(53,293	)		2,618
Financial liabilities at FVTPL		85,742			54,687
Sub-total		32,449			57,305
Realization in current period
Financial assets at FVTPL		5,097			7,797
Financial liabilities at FVTPL		(24,188	)		(41,239	)
Sub-total		(19,091	)		(33,442	)
Ending balance		68,090			54,732

Although no observable elements were available in market transaction to fair value the financial instruments, valuation techniques were utilized to fair value such instruments. These financial instruments are recorded at their 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 profits and losses and the details.

27. Capital Stock and Capital Surplus

(1) The number of authorized shares is as follows:

	June 30, 2012		December 31, 2011
Authorized shares of common stock		2,400,000,000 shares		2,400,000,000 shares
Par value		5,000 Won		5,000 Won
Issued shares of common stock		806,015,340 shares		806,015,340 shares

As of June 30, 2012 and December 31, 2011, the Group holds 1,999 shares (14 million Won) of its treasury stock, respectively, acquired as a buyback of odd-lot share when exchanging the stock of Woori Investment & Securities.

(2) Capital surplus are as follows (Unit: Korean Won in millions):

	June 30, 2012		December 31, 2011
Capital in excess of par value		109,025		109,025
Other capital surplus		65,562		66,743
Total		174,587		175,768

28. Hybrid Securities

The bond-type hybrid securities classified as shareholder’s equity are as follows (Unit: Korean Won in millions):

	Issuance date	Maturity	Annual interest rate (%)		June 30, 2012			December 31, 2011
The 1st bond-type hybrid securities	November 22, 2011	November 22, 2041		5.91		310,000			310,000
The 2nd bond-type hybrid securities	March 8, 2012	March 8, 2032		5.83		190,000			—
Issuance cost						(1,593	)		(990	)
Total						498,407			309,010

- 52 -

Although these instruments have contractual maturity dates and stipulated contractual interest payments, the contractual agreements allow the Company to indefinitely extend the maturity date and defer the payment of interest without a modification of the other terms of the instrument such as interest rate, etc. If the Company makes a resolution not to pay dividends on ordinary stock, and then, the Company is exonerated from interest payment on the hybrid securities.

29. Other Equity

(1) Other equity is as follows (Unit: Korean Won in millions):

	June 30, 2012			December 31, 2011
Other comprehensive income:
Gain on valuation of AFS financial assets		367,458			647,482
Gain on equity of jointly controlled entities and associates		601			4,940
Loss on FX translation on overseas operations		(6,168	)		(2,772	)
Gain on cashflow hedges		7,096			4,336
Sub-total		368,987			653,986
Treasury shares		(14	)		(14	)
Other capital adjustments		(61,981	)		(67,551	)
Total		306,992			586,421

(2) Changes in accumulated other comprehensive income are as follows (Unit: Korean Won in millions):

	For the six months ended June 30, 2012
	Beginning balance			Increase (decrease) on valuation			Reclassification adjustments			Income tax effect			Ending balance
Gain on valuation of AFS financial assets		647,482			60,232			(435,164	)		94,908			367,458
Gain on equity of jointly controlled entities and associates		4,940			(5,810	)		—			1,471			601
Loss on FX translation on overseas operations		(2,772	)		(6,474	)		—			3,078			(6,168	)
Gain on cashflow hedges		4,336			3,242			—			(482	)		7,096
Total		653,986			51,190			(435,164	)		98,975			368,987

	For the year ended December 31, 2011
	Beginning balance			Increase (decrease) on valuation			Reclassification adjustments			Income tax effect			Ending balance
Gain on valuation of AFS financial assets		1,051,219			125,530			(576,844	)		47,577			647,482
Gain on equity of jointly controlled entities and associates		24,970			(26,884	)		(24,787	)		31,641			4,940
Loss on FX translation on overseas operations		(16,221	)		15,244			—			(1,795	)		(2,772	)
Gain on cash flow hedges		1,187			1,552			(749	)		2,346			4,336
Total		1,061,155			115,442			(602,380	)		79,769			653,986

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30. Retained Earnings

(1) Retained earnings are as follows (Unit: Korean Won in millions):

	June 30, 2012		December 31, 2011
Legal reserves		1,035,849		1,005,401
Voluntary reserves		8,528,008		8,256,000
Retained earnings carried forward		3,582,063		3,161,321
Total		13,145,920		12,422,722

Pursuant to Article 53 of the Financial Holding Company Act, legal reserves are appropriated at no less than 10% of net income until reaching an amount equal to the Company’s capital.

(2) Changes in retained earnings are as follows (Unit: Korean Won in millions):

	For the six months ended June 30, 2012			For the year ended December 31, 2011
Beginning balance		12,422,722			10,489,339
Net income		937,634			2,136,828
Dividends on common stock		(201,503	)		(201,503	)
Dividends on hybrid securities		(12,592	)		(1,942	)
Others		(341	)		—
Ending balance		13,145,920			12,422,722

31. Planned Regulatory Reserve for Credit Loss

In accordance with the Regulations for Supervision of Financial Holding Companies (“RSFHC”), if the estimated provision for credit loss determined in accordance with K-IFRS 1039 Financial instruments: Recognition and Measurement is lower than those in accordance with the RSFHC, the Group shall disclose the difference as the regulatory reserve for credit loss.

(1) Regulatory reserve for credit loss is as follows (Unit: Korean Won in millions):

	June 30, 2012		December 31, 2011
Controlling interests		1,396,534		1,339,430
Non-controlling interests		8,498		12,336
		1,405,032		1,351,766

(2) Reserve, net income attributable to shareholders and earnings per share after the reserve provided are as follows (Unit: Korean Won in millions, except for earnings per share):

	2012					2011
	Three months ended June  30			Six months ended June 30		Three months ended June  30		Six months ended June  30
Planned regulatory reserve for credit loss		(46,987	)		57,104		113,875		173,248
Net income after the planned reserve provided		339,596			880,530		678,422		1,121,664
Earnings per share after the planned reserve provided (*)		412			1,077		842		1,392

(*) Earnings per share after the planned reserve provided is calculated by deducting dividends on hybrid securities from net income after the planned reserve provided.

- 54 -

32. Dividends

The Group paid 201,503 million Won (250 Won per share) of dividends in 2012 and 2011 respectively.

33. Net Interest Income

(1) Interest income recognized are as follows (Unit: Korean Won in millions):

	2012				2011
	Three months ended June  30		Six months ended June 30		Three months ended June  30		Six months ended June 30
Financial assets at FVTPL:
Debt securities
Korean treasury and government agencies		44,490		75,604		36,275		78,443
Financial institutions		46,055		93,653		38,519		69,704
Corporates		33,922		74,751		27,684		59,538
CP		27,769		51,223		27,434		54,288
Interest of other FVTPL financial assets		26,258		56,383		26,091		58,881
Sub-total		178,494		351,614		156,003		320,854
AFS financial assets:
Debt securities
Korean treasury and government agencies		36,712		73,772		40,288		79,098
Financial institutions		54,545		106,290		56,136		109,620
Corporates		52,249		89,673		13,851		34,010
Asset-backed securities		379		635		413		1,332
Foreign currency bonds		1,690		3,085		1,573		3,605
Interest of other AFS financial assets		1,830		3,456		1,352		2,460
Sub-total		147,405		276,911		113,613		230,125
HTM financial assets:
Debt securities
Korean treasury and government agencies		88,410		172,673		82,538		154,237
Financial institutions		40,507		92,191		71,650		144,184
Corporates		80,638		158,446		69,799		133,278
Asset-backed securities		—		—		636		709
Foreign government		923		2,040		2,403		4,604
Sub-total		210,478		425,350		227,026		437,012
Loans and receivables:
Interest on due from banks		60,488		115,734		44,446		76,439
Interest on loans		3,188,533		6,433,660		3,174,088		6,164,482
Interest of other receivables		27,080		53,532		27,001		70,767
Sub-total		3,276,101		6,602,926		3,245,535		6,311,688
Total		3,812,478		7,656,801		3,742,177		7,299,679

(2) Interest expense recognized are as follows (Unit: Korean Won in millions):

	2012				2011
	Three months ended June  30		Six months ended June 30		Three months ended June  30		Six months ended June 30
Interest on deposits due to customers		1,386,588		2,764,496		1,308,922		2,502,687
Interest on borrowings		197,703		403,642		207,059		403,688
Interest on debentures		357,615		719,429		394,152		798,350
Other interest expense		33,214		69,804		25,786		55,366
Total		1,975,120		3,957,371		1,935,919		3,760,091

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34. Net Fees and Commissions Income

(1) Fees and commissions income recognized are as follows (Unit: Korean Won in millions):

	2012				2011
	Three months ended June  30		Six months ended June 30		Three months ended June  30		Six months ended June 30
Banking fees:
Banking fees (*)		216,515		420,863		203,822		394,006
Guarantee fees		28,415		54,150		26,813		47,639
Fees from project financing		5,289		13,458		5,945		12,854
Sub-total		250,219		488,471		236,580		454,499
Other fees:
Credit card fees		10,060		19,824		9,527		19,282
CMA management fees		1,210		2,612		1,326		2,845
Lease		3,265		6,844		3,114		6,774
Brokerage fees		109,629		252,826		182,391		351,531
Others		33,538		64,882		31,964		62,177
Sub-total		157,702		346,988		228,322		442,609
Total		407,921		835,459		464,902		897,108

(*) Banking fees are including agency commission, fees income from electronic finance, fees income related to loan, fees for import letter of credit dealing, commission received on foreign exchange and others.

(2) Fees and commission expense incurred are as follows (Unit: Korean Won in millions):

	2012				2011
	Three months ended June  30		Six months ended June 30		Three months ended June  30		Six months ended June 30
Fees paid		25,408		53,821		29,318		56,285
Credit card commission		111,953		218,238		96,736		180,766
Brokerage commission		17,404		35,028		21,567		26,326
Others		4,997		6,874		6,891		10,024
Total		159,762		313,961		154,512		273,401

35. Dividend Income

Dividend income recognized are as follows (Unit: Korean Won in millions):

	2012				2011
	Three months ended June  30		Six months ended June 30		Three months ended June  30		Six months ended June 30
Dividend on financial assets at FVTPL		7,480		22,576		1,334		14,987
Dividend on AFS financial assets		31,437		87,286		54,630		129,834
Total		38,917		109,862		55,964		144,821

- 56 -

36. Gain (Loss) on Financial Assets at FVTPL

(1) Gain (loss) on financial assets held for trading are as follows (Unit: Korean Won in millions):

	2012						2011
	Three months ended June  30			Six months ended June 30			Three months ended June  30			Six months ended June 30
Gain (loss) on valuation and disposal of securities:
Loss on redemption of securities		(595	)		(3,270	)		21,152			18,018
Gain on transaction of securities		5,690			67,300			(22,174	)		(17,819	)
Gain (loss) on valuation of securities		26,394			29,997			(4,439	)		(43,243	)
Sub-total		31,489			94,027			(5,461	)		(43,044	)
Gain (loss) on derivatives:
Gain (loss) on transaction of derivatives
Interest rate derivatives		(25,089	)		(8,225	)		(43,364	)		(32,571	)
Currency derivatives		44,281			38,061			50,936			68,979
Stock equity derivatives		(10,707	)		(14,418	)		5,191			54,299
Other derivatives		2,775			1,199			4,087			9,536
Sub-total		11,260			16,617			16,850			100,243
Gain (loss) on valuation of derivatives
Interest rate derivatives		(2,775	)		(21,317	)		23,020			30,183
Currency derivatives		(41,772	)		(40,446	)		(28,673	)		(1,134	)
Stock equity derivatives		(19,285	)		160,814			31,876			(12,224	)
Other derivatives		(6,212	)		9,636			(2,240	)		(7,099	)
Sub-total		(70,044	)		108,687			23,983			9,726
Total		(27,295	)		219,331			35,372			66,925

(2) Gain (loss) on valuation of financial assets designated at FVTPL is as follows (Unit: Korean Won in millions):

	2012						2011
	Three months ended June  30			Six months ended June 30			Three months ended June  30			Six months ended June 30
Gain on redemption of securities		1,971			6,176			2,924			13,052
Gain (loss) on valuation of securities		(6,618	)		31,539			(1,183	)		(8,685	)
Loss on transaction of other financial assets designated at FVTPL		(29,307	)		(104,127	)		18,440			(49,750	)
Gain (loss) on valuation of other financial assets designated at FVTPL		60,671			(176,661	)		(16,345	)		69,636
Total		26,717			(243,073	)		3,836			24,253

- 57 -

37. Gain (Loss) on AFS Financial Assets

Gain (loss) on AFS financial assets recognized in statements of comprehensive income is as follows (Unit: Korean Won in millions):

	2012						2011
	Three months ended June  30			Six months ended June 30			Three months ended June  30			Six months ended June 30
Gain on redemption of securities		46			90			16			37
Gain on transaction of securities		294,979			581,770			1,050,034			1,127,081
Impairment loss or reversal of impairment on securities		(29,100	)		(39,923	)		(55,058	)		(117,703	)
Total		265,925			541,937			994,992			1,009,415

38. Impairment Loss on Credit Loss

Impairment loss on credit loss recognized for credit loss is as follows (Unit: Korean Won in millions):

	2012						2011
	Three months ended June  30			Six months ended June 30			Three months ended June  30			Six months ended June 30
Provision for credit loss		727,058			1,144,655			740,731			1,182,566
Reversal of provision for credit loss		(26,773	)		(39,651	)		(18,103	)		(61,592	)
Sub-total		700,285			1,105,004			722,628			1,120,974
Provision for guarantee		214,756			243,073			64,452			137,112
Reversal of provision for guarantee		(2,730	)		(8,083	)		(5,012	)		(15,313	)
Sub-total		212,026			234,990			59,440			121,799
Provision for loan commitment		13,728			20,484			(64	)		2,109
Reversal of provision for loan commitment		(1,113	)		(1,826	)		301			(10,017	)
Sub-total		12,615			18,658			237			(7,908	)
Total		924,926			1,358,652			782,305			1,234,865

- 58 -

39. Other Operating Income (Expense)

(1) Other operating incomes recognized are as follows (Unit: Korean Won in millions):

	2012					2011
	Three months ended June  30			Six months ended June 30		Three months ended June  30			Six months ended June 30
Gain on transaction of FX		200,130			1,323,132		915,301			2,365,920
Gain on translation of FX		4,307			7,958		14,797			17,628
Rental fee income		3,093			6,549		3,435			9,463
Gain on transactions of loans and receivables		32,827			38,386		22,335			29,553
Gain on disposal of investment in jointly controlled entities and associates		21,631			24,702		501			33,790
Gain on disposal of premises and equipment and other assets		1,191			1,650		3,774			7,233
Reversal of impairment loss of premises and equipment and other assets		(86	)		1,929		1,213			3,528
Gain on transactions of derivatives		380			381		234			233
Gain on valuations of derivatives		29,568			33,306		10,646			18,727
Gain on fair value hedged items		7,622			28,271		(11,201	)		8,247
Reversal of other provisions		40,311			43,656		8,855			17,477
Others		41,408			61,795		13,761			26,595
Total		382,382			1,571,715		983,651			2,538,394

(2) Other operating expenses recognized are as follows (Unit: Korean Won in millions):

	2012					2011
	Three months ended June  30			Six months ended June 30		Three months ended June  30			Six months ended June 30
Administrative expenses		1,020,148			1,954,341		988,065			1,813,932
Loss on transaction of FX		185,801			1,241,406		867,529			2,296,042
Loss on translation of FX		7,724			13,762		13,531			20,744
Contribution to miscellaneous funds		93,983			186,327		89,256			174,408
KDIC deposit insurance fees		65,713			129,954		62,069			121,360
Donation		23,660			55,256		3,746			18,289
Loss on transactions of loans and receivables		1,535			2,541		119,945			147,800
Loss on disposal of joint controlling entity and associates		—			18,079		—			—
Loss on disposal of premises and equipment and other assets		616			1,670		2,992			4,154
Impairment loss of premises and equipment and other assets		1,422			7,579		11,058			12,021
Loss on transactions of derivatives		23,049			23,228		3,026			5,009
Loss on valuations of derivatives		(13,066	)		10,427		(9,274	)		15,049
Loss on fair value hedged items		25,634			29,616		21,314			23,844
Other provision		(24,551	)		21,527		3,168			10,464
Others		29,562			38,187		18,676			33,388
Total		1,441,230			3,733,900		2,195,101			4,696,504

- 59 -

(3) Administrative expenses recognized are as follows (Unit: Korean Won in millions):

	2012				2011
	Three months ended June  30		Six months ended June 30		Three months ended June  30		Six months ended June 30
Short term employee benefits		394,896		782,435		427,796		761,305
Retirement benefit service costs		49,306		112,536		37,567		81,023
Fringe benefits		107,287		205,428		99,273		186,014
Depreciation and amortization		72,003		145,615		66,999		134,506
Rent		62,089		124,466		56,475		113,519
Taxes and dues		38,448		84,146		48,103		91,005
Service charges		60,008		110,575		48,784		86,994
IT expenses		32,313		53,640		29,930		53,354
Telephone and communication expenses		20,052		37,590		16,235		31,435
Operating promotion expenses		18,240		35,996		14,772		28,420
Advertising		33,559		53,659		24,741		47,067
Printing		4,015		7,693		4,046		7,660
Traveling expenses		4,367		8,603		3,786		7,601
Supplies		3,045		5,957		2,604		5,275
Insurance premium		1,885		3,864		2,109		4,032
Others		118,635		182,138		104,845		174,722
Total		1,020,148		1,954,341		988,065		1,813,932

40. Income Tax Expense

(1) Income tax expenses are as follows (Unit: Korean Won in millions):

	For the six months ended June 30
	2012			2011
Current tax expense
Current tax expense in respect of the current year		310,761			329,619
Adjustments recognized in the current period in relation to the current tax of prior periods		(1,170	)		46,724
Sub-total		309,591			376,343
Deferred tax expense
Deferred tax expense (income) relating to the origination and reversal of temporary differences		(100,575	)		71,790
Deferred tax reclassified from other comprehensive income to net income		98,975			115,899
Sub-total		(1,600	)		187,689
Income tax expense		307,991			564,032

(2) Income tax expense can be reconciled to net income as follows (Unit: Korean Won in millions):

	For the six months ended June 30
	2012			2011
Net income before income tax expense		1,369,915			2,041,639
Tax calculated at statutory tax rate (24.2%)		331,057			494,050
Adjustments
Effect of income that is exempt from taxation		(47,613	)		(1,625	)
Effect of expense that is not deductible in determining taxable profit		24,732			26,065
Effect on deferred tax balance due to the change in income tax rate		—			(3,146	)
Adjustments recognized in the current period in relation to the current tax of prior periods		(1,170	)		46,724
Others		985			1,964
Sub-total		(23,066	)		69,982
Income tax expense		307,991			564,032
Effective tax rate		22.48	%		27.63	%

- 60 -

(3) Current tax assets and liabilities are as follows (Unit: Korean Won in millions):

	June 30, 2012		December 31, 2011
Current tax assets		22,362		56,570
Current tax liabilities		151,640		274,257

(4) Deferred tax assets and liabilities are as follows (Unit: Korean Won in millions):

	June 30, 2012		December 31, 2011
Deferred tax assets		51,401		79,980
Deferred tax liabilities		131,277		260,431
Net deferred tax liabilities		79,876		180,451

41. Earnings Per Share (“EPS”)

Basic EPS is calculated by dividing net income by weighted average number of common shares outstanding (Unit: Korean Won in millions except for EPS):

	2012						2011
	Three months ended June 30			Six months ended June 30			Three months ended June 30		Six months ended June 30
Net income attributable to common shareholders		292,609			937,634			792,295		1,294,912
Dividends to hybrid securities		(7,327	)		(12,592	)		—		—
Net income attributable to common shareholders		285,282			925,042			792,295		1,294,912
Weighted average number of common shares outstanding		806,013,341 shares			806,013,341 shares			806,012,779 shares		806,012,779 shares
Basic EPS		354			1,148			983		1,607

Diluted EPS is equal to basic EPS because there is no dilution effect for the six months ended June 30, 2012 and 2011, respectively.

42. Contingent Liabilities and Commitments

(1) Guarantees (Unit: Korean Won in millions):

	June 30, 2012		December 31, 2011
Confirmed guarantees
Guarantee for debenture issuances		—		135
Guarantee for loans		391,937		290,799
Acceptances		778,119		840,437
Guarantee in acceptances imported goods		140,098		142,073
Other confirmed guarantees		9,619,660		10,297,667
Total		10,929,814		11,571,111
Unconfirmed guarantees
Local letter of credit		1,007,202		1,003,258
Letter of credit		6,106,070		4,837,106
Other unconfirmed guarantees		2,733,676		3,133,110
Total		9,846,948		8,973,474
CP purchase commitments and others		5,673,285		6,157,569

- 61 -

(2) Loan commitments and others (Unit: Korean Won in millions):

	June 30, 2012		December 31, 2011
Loan commitments		87,794,420		88,400,600
Other commitments		9,139,034		10,035,221

(3) Litigation case

The Group had filed lawsuits as follows (Unit: Korean Won in millions):

	June 30, 2012				December 31, 2011
	As plaintiff		As defendant		As plaintiff		As defendant
Number of cases		1,088 cases		404 cases		804 cases		292 cases
Amount of litigation		1,559,328		747,729		1,144,087		788,852
Allowances for litigations				177,407				261,508

As of June 30, 2012, significant lawsuits which the Group is facing, are due to division of structured finance’s financial incident of 2010 Gongpyung 1st Co., Ltd. amounting to 65,000 million Won (Kyongnam Bank), payment of seized deposit of Seocho District Tax Office amounting to 45,000 million Won (Woori Bank), and reimbursement of advances of Hanley Shipping INC amounting to 37,000 million Won (Woori Bank).

Sues from the electronic reminder (payment orders for unpaid credit card receivables to individuals) are not included on the litigations as of June 30, 2012 and December 31, 2011, and about that, there are no significant effects on the financial statements as of June 30, 2012 and December 31, 2011, respectively.

43. Lease

(1) Operating lease

Minimum lease payments to be collected under the operating lease agreement is as follows (Unit: Korean Won in millions):

	June 30, 2012				December 31, 2011
	Local currency		Foreign currency		Local currency		Foreign currency
1 year		118		614		155		1,844
2 years		20		—		66		—
Total		138		614		221		1,844

- 62 -

(2) Finance lease receivables

Present value of gross investment and minimum lease payments are as follows (Unit: Korean Won in millions):

	June 30, 2012			December 31, 2011
1 year		311,191			301,025
2 years		237,715			242,867
3 years		146,692			152,402
4 years		18,945			23,000
5 years		3,184			3,715
Gross investment in lease		717,727			723,009
Unrealized interest revenue		(75,208	)		(78,463	)
Net investment in lease		642,519			644,546
Receivables of cancellable lease		—			673
Costs of finance lease		16,868			16,545
Receivables of finance lease		659,387			661,764
Provision for credit losses		(3,785	)		(3,831	)
Total		655,602			657,933

(3) Finance lease liabilities

Present value of minimum lease payments under the finance lease agreement are as follows (Unit: Korean Won in millions):

	June 30, 2012			December 31, 2011
Within 1 year		28,753			34,151
From 1 to 5 years		51,297			48,535
Sub - total		80,050			82,686
Present value discount		(6,090	)		(5,767	)
Present value		73,960			76,919

- 63 -

44. Related Party Transactions

Related parties of the Group and major transactions with related parties during the current and prior period are as follows:

(1) Related parties

Government related entity	Consolidated subsidiaries	Jointly controlled entities and associates
Korea deposit	Woori Bank, Kyongnam Bank, Kwangju Bank,	Woori Aviva Life Insurance Co., Ltd.,
insurance	Woori FIS Co., Ltd., Woori F&I Co., Ltd.,	Woori Service Networks Co., Ltd.,
corporation	Woori Investment Securities Co., Ltd.,	Korea Credit Bureau Co., Ltd.,
	Woori Asset Management Co., Ltd.,	Korea Finance Security Co., Ltd.,
	Woori Private Equity Co., Ltd.,	Woori Blackstone Korea Opportunity
	Woori Financial Co., Ltd.,	Private Equity Fund I,
	Woori FG Savings Bank,	Kumho Tires Co., Ltd.,
	Woori Credit Information Co., Ltd.,	United PF 1st Corporate Financial
	Woori America Bank, Woori China Bank,	Stability, LIG E&C Co., Ltd,
	Woori Global Markets Asia Ltd.,	Hyunjin Co., Ltd, Pi City Co., Ltd.,
	Woori Russia Bank, P.T. Bank Woori Indonesia,	Chin Hung International, Inc.
	Korea BTL Infrastructure Fund,	Seoul Lakeside Co., Ltd.,
	Woori Fund Service Co., Ltd.,	Woori Renaissance Holdings,
	Woori Futures Co., Ltd.,	Phoenix Digital Tech Co., Ltd.,
	Woori Investment Securities Int’l Ltd.,	Bonghwang Semiconductor Yuhan
	Woori Investment Securities (H.K.) Ltd.,	Gongsa,
	Woori Investment Securities America Inc.,	Chungdo Woori Century Security Corp,
	MARS First Private Equity Fund,	Ltd.,
	MARS INS First Ltd,	Woori SB Fifth Asset Securitization
	MARS Second Private Equity Fund,	Specialty and 17 SPCs.
	Woori Investment Asia PTE Ltd.,
	Woori Absolute Partners PTE Ltd.,
	Woori Absolute Global Opportunity Fund,
	LG Investment Holding B.V. (Amsterdam) GG, Connacht Capital Market Investment,
	Woori Korindo Securities Indonesia,
	Woori CBV Securities Corporation,
	Woori Absolute Return Investment Strategies Fund, Kumho Investment Bank Co., Ltd.,
	Sahn Eagles LLC, Two Eagles LLC,
	Woori EL Co., Ltd., Woori Giant First Co., LLC.
	Woori Investment Advisory Co., Ltd., (Beijing), Kofc Woori Growth Champ Private Equity Fund, Woori AMC Co., Ltd., Woori Private Equity Fund,
	Woori Bank principal and interest Trust and 2 principal and interest trusts,
	Woori F&I Seventh Asset Securitization Specialty and 50 SPCs,
	Woori Heritage Longshort Private Equity trusts I and 42 beneficiary certificates.

- 64 -

(2) Assets and liabilities from transactions with related parties are as follows (Unit: Korean Won in millions):

	June 30, 2012		December 31, 2011
Government related entity
Loans and receivables		1,751,693		999,543
Other financial assets		1,224,756		862,919
Other assets		1,516		—
Deposits due to customers		104,236		251,916
Other financial liabilities		1,783		208
Other liabilities		158		690
Jointly controlled entities
AFS financial assets		20,554		34,704
Loans and receivables		9,070		8,428
Other assets		7,212		83
Deposits due to customers		1,331		4,217
Other financial liabilities		—		691
Other liabilities		234		234
Associates
AFS financial assets		34,270		25,557
Loans and receivables		583,690		415,334
Deposits due to customers		84,405		75,070
Provision		—		1,907
Other financial liabilities		404		371
Other liabilities		—		8

(3) Gain or loss from transactions with related parties are as follows (Unit: Korean Won in millions):

	For the six months ended June 30
	2012		2011
Government related entity
Interest income		22,395		17,809
Interest expense		1,973		5,468
Other operating expense		942		951
Jointly controlled entities
Interest income		424		334
Fee income		9,762		12,477
Other operating income		2,359		2,358
Interest expense		3		5
Other operating expense		137		95
Associates
Interest income		8,327		7,542
Fee income		2,829		4,611
Other operating income		71,345		10,094
Interest expense		814		183
Other operating expense		2,032		596

- 65 -

(4) Guarantees provided to the related parties are as follows (Unit: Korean Won in millions):

	June 30, 2012		December 31, 2011
Kumho Tires Co., Inc.		—		4,844	Unconfirmed guarantees
”		1,494		660	Endorsed notes
”		17,215		17,303	Commitments on loss sharing
”		17,721		18,091	Letter of credit
Hyunjin Co., Ltd.		765		287	Confirmed acceptances and guarantees
Sempio Food Co., Ltd. (*)		—		575	Letter of credit
Chin Hung International Inc.		—		192	Letter of credit

(*) The Sempio Food Co., Ltd is excluded from the related party because the entity is excluded from Woori Investment & Securities Co., Ltd.’s associates for the six months ended June 30, 2012.

(5) Management compensation is as follows (Unit: Korean Won in millions):

	For the six months ended June 30
	2012		2011
Short term benefits		16,105		14,763
Severance payments		1,202		691

45. Subsequent Events

Woori FG Savings Bank Co., Ltd. was selected as a preferred bidder to take assets and liabilities from Solomon Savings Bank at July 24, 2012. On August 21, 2012, Woori FG Savings Bank Co., Ltd. entered into an agreement with KDIC to acquire assets and liabilities from Solomon Savings Bank.

46. Agreement on the Implementation of a Management Plan 

(1) Since December 30, 2000, the Company’s three subsidiaries, Woori Bank, Kyongnam Bank and Kwangju Bank, and KDIC have entered into agreements to implement management plans. Under the agreements, the three subsidiaries are obligated to improve their respective financial ratios, such as Bank of International Settlements (“BIS”) capital ratio, general and administrative ratio, non-performing loan rate and adjusted operating income per person. If the three subsidiaries fail to make improvements, the KDIC can enforce the three subsidiaries to increase or decrease their capital, pursue mergers, transfer of loans and deposits, or close or sell parts of their business operations.

(2) Since July 2, 2001, the Company and KDIC have entered into an agreement whereby the Company would integrate the aforementioned subsidiaries, Woori Bank, Kyongnam Bank and Kwangju Bank, and improve their performances. The agreement stipulates that the Company should build a governance and management structure plan, implement a short-term business improvement strategy, enhance subsidiaries’ competitiveness, expedite privatization, meet the financial ratio targets, and dispose of business units in case the plan fails.

(3) In addition, on July 2, 2001, in order to implement the aforementioned agreements, the Company and its three subsidiaries entered management implementation agreements. Pursuant to the agreements, the three subsidiaries should meet management goals given by the Company, consult with the Company about material business decisions before execution, and prepare and implement a detailed business plan in conformity with the Company’s business strategies. If the three subsidiaries fail to implement the management plan, the Company may order the three subsidiaries to limit sales of the specific financial products, investments in premises and equipment, promotion of new business or new equity investment, or to close or merge their branch operations and subsidiaries.

- 66 -

WOORI FINANCE HOLDINGS CO., LTD.

SEPARATE FINANCIAL STATEMENTS

FOR THE SIX MONTHS ENDED JUNE 30, 2012 AND 2011

AND INDEPENDENT ACCOUNTANTS’ REVIEW REPORT

Audit•Tax•Consulting•Financial Advisory

Independent Accountants’ Review Report

English Translation of a Report Originally Issued in Korean

To the Shareholders and Board of Directors of

Woori Finance Holdings Co., Ltd.:

Report on the separate financial statements

We have reviewed the accompanying separate financial statements of Woori Finance Holdings Co., Ltd. (the “Company”). The separate financial statements consist of the separate statements of financial position as of June 30, 2012 and December 31, 2011, and the related separate statements of comprehensive income, for the three months and six months ended June 30, 2012 and 2011, changes in equity and cash flows for the six months ended June 30, 2012 and 2011, and a summary of significant accounting policies and other explanatory information.

Management’s responsibility for the separate financial statements

The Company’s management is responsible for the preparation and fair presentation of the accompanying separate financial statements and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

Independent accountants’ responsibility

Our responsibility is to express a conclusion on the accompanying separate financial statements based on our reviews.

We conducted our reviews in accordance with standards for review of interim financial statements in the Republic of Korea. A review is limited primarily to inquiries of company personnel and analytical procedures applied to financial data, and this provides less assurance than an audit. We have not performed an audit and, accordingly, we do not express an audit opinion.

Review conclusion

Based on our reviews, nothing has come to our attention that causes us to believe that the accompanying separate financial statements of the Company are not presented fairly, in all material respects, in accordance with K-IFRS 1034, Interim Financial Reporting.

Others

We have previously audited, in accordance with auditing standards generally accepted in the Republic of Korea, the separate statement of financial position of the Company as of December 31, 2011 and the related separate statement of comprehensive income, changes in equity and cash flows for the year then ended (not presented herein) and in our report dated March 21, 2012, we expressed an unqualified opinion on those separate financial statements. The accompanying statement of financial position as of December 31, 2011, which is comparatively presented in the accompanying separate financial statement, does not differ in material respects from such audited separate statement of financial position.

August 23, 2012

Notice to Readers

This report is effective as of August 23, 2012, the accountants’ review report date. Certain subsequent events or circumstances may have occurred between this review report date and the time the report is read. Such events or circumstances could significantly affect the accompanying financial separate statements and may result in modifications to the accountants’ review report.

WOORI FINANCE HOLDINGS CO., LTD.

SEPARATE FINANCIAL STATEMENTS

FOR THE SIX MONTHS ENDED JUNE 30, 2012 AND 2011

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

Pal Seung Lee

Chairman and Chief Executive Officer

WOORI FINANCE HOLDINGS CO., LTD.

SEPARATE STATEMENTS OF FINANCIAL POSITION

AS OF JUNE 30, 2012 AND DECEMBER 31, 2011

	June 30, 2012			December 31, 2011
	(Korean Won in millions)
ASSETS
Cash and cash equivalents (Notes 5 and 26)		445,058			33,538
Loans and receivables (Notes 4, 6, 7 and 26)		75,111			36,691
Investments in subsidiaries and associates (Note 8)		17,825,203			17,825,203
Fixed assets (Notes 9 and 25)		477			515
Intangible assets (Note 10)		37			29
Deferred tax assets (Note 23)		2,110			2,158
Other assets (Notes 11, 13 and 26)		131,815			204,871
Total assets		18,479,811			18,103,005
LIABILITIES
Debentures (Notes 4, 7 and 12)		3,654,251			3,653,968
Retirement benefit obligation (Notes 13 and 26)		1,193			—
Current tax liability (Note 23)		126,673			201,361
Other financial liabilities (Notes 4, 7, 14 and 26)		30,820			30,632
Other liabilities (Note 14)		3,963			2,823
Total liabilities		3,816,900			3,888,784
EQUITY
Common stock (Note 15)		4,030,077			4,030,077
Hybrid securities (Note 16)		498,407			309,010
Capital surplus (Note 15)		109,026			109,026
Other equity (Note 17)		(14	)		(14	)
Retained earnings (Note 18)		10,025,415			9,766,122
Total equity		14,662,911			14,214,221
Total liabilities and equity		18,479,811			18,103,005

See accompanying notes to separate financial statements.

WOORI FINANCE HOLDINGS CO., LTD.

SEPARATE STATEMENTS OF COMPREHENSIVE INCOME

FOR THE THREE MONTHS AND FOR SIX MONTHS ENDED JUNE 30, 2012 AND 2011

	2012						2011
	Three months ended June 30			Six months ended June 30			Three months ended June 30			Six months ended June 30
	(Korean Won in millions, except for earnings per share data)
NET INTEREST INCOME (EXPENSE) (Notes 19 and 26)
Interest income		4,527			5,755			2,245			3,200
Interest expense		46,293			94,059			56,362			113,038
		(41,766	)		(88,304	)		(54,117	)		(109,838	)
NET FEE INCOME (Notes 20 and 26)
Fee income		15,035			30,072			17,813			35,626
Fee expense		1,540			2,146			1,828			4,511
		13,495			27,926			15,985			31,115
DIVIDEND INCOME (Notes 21 and 26)		17,348			562,272			15,570			516,008
OTHER NET OPERATING EXPENSES (Notes 22 and 26)		(17,033	)		(28,458	)		(12,914	)		(25,392	)
OPERATING INCOME (LOSS)		(27,956	)		473,436			(35,476	)		411,893
INCOME (LOSS) BEFORE INCOME TAX		(27,956	)		473,436			(35,476	)		411,893
INCOME TAX EXPENSE (Note 23)		105			48			11			180
NET INCOME (LOSS)		(28,061	)		473,388			(35,487	)		411,713
OTHER COMPREHENSIVE INCOME, NET OF TAX		—			—			—			—
COMPREHENSIVE NET INCOME (LOSS)		(28,061	)		473,388			(35,487	)		411,713
EARNING PER SHARE (Note 24)
Basic and diluted earnings (loss) per share		(44	)		572			(44	)		511

See accompanying notes to separate financial statements.

WOORI FINANCE HOLDINGS CO., LTD.

SEPARATE STATEMENTS OF CHANGES IN EQUITY

FOR THE SIX MONTHS ENDED JUNE 30, 2012 AND 2011

	Common stock		Hybrid securities		Capital surplus		Other equity			Retained earnings			Total
	(Korean Won in millions)
January 1, 2011		4,030,077		—		84,488		(18	)		9,689,624			13,804,171
Dividends		—		—		—		—			(201,503	)		(201,503	)
Net income		—		—		—		—			411,713			411,713
June 30, 2011		4,030,077		—		84,488		(18	)		9,899,834			14,014,381
January 1, 2012		4,030,077		309,010		109,026		(14	)		9,766,122			14,214,221
Dividends		—		—		—		—			(201,503	)		(201,503	)
Dividends of hybrid securities		—		—		—		—			(12,592	)		(12,592	)
Net income		—		—		—		—			473,388			473,388
Issue of hybrid securities		—		189,397		—		—			—			189,397
June 30, 2012		4,030,077		498,407		109,026		(14	)		10,025,415			14,662,911

See accompanying notes to separate financial statements.

WOORI FINANCE HOLDINGS CO., LTD.

SEPARATE STATEMENTS OF CASH FLOWS

FOR THE SIX MONTHS ENDED JUNE 30, 2012 AND 2011

	2012			2011
	(Korean Won in millions)
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income		473,388			411,713
Adjustment to net income:		(472,930	)		(404,802	)
Income tax expense		48			180
Interest income		(5,755	)		(3,200	)
Interest expense		94,059			113,038
Dividend income		(562,272	)		(516,008	)
Depreciation		91			206
Amortization		3			2
Retirement benefit		896			980
Changes in operating assets and liabilities:		163,838			123,855
Increase in loans and receivables		(36,959	)		(175	)
Decrease in other assets		203,306			124,877
Increase (decrease) in retirement benefit obligation		310			(112	)
Decrease in other financial liabilities		(369	)		(730	)
Decrease in other liabilities		(2,450	)		(5	)
Cash received (paid) from operating activities:		272,375			281,533
Income tax paid		(201,361	)		(124,078	)
Interest income received		4,293			2,543
Interest expense paid		(92,829	)		(112,940	)
Dividend income received		562,272			516,008
Net cash provided by operating activities		436,671			412,299

(Continued)

WOORI FINANCE HOLDINGS CO., LTD.

SEPARATE STATEMENTS OF CASH FLOWS (CONTINUED)

FOR THE SIX MONTHS ENDED JUNE 30, 2012 AND 2011

	2012			2011
	(Korean Won in millions)
CASH FLOWS FROM INVESTING ACTIVITIES:
Acquisition of investments in subsidiaries and associates		—			(110,000	)
Acquisition of fixed assets		(53	)		(56	)
Acquisition of intangible assets		(11	)		—
Net cash used in investing activities		(64	)		(110,056	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Issue of debentures		318,949			408,626
Increase in borrowings		35,000			10,000
Issue of hybrid securities		189,397			—
Redemption of debentures		(320,000	)		(410,000	)
Redemption of borrowings		(35,000	)		(10,000	)
Dividends of hybrid securities		(11,930	)		—
Payment of dividends		(201,503	)		(201,503	)
Net cash used in financing activities		(25,087	)		(202,877	)
NET INCREASE IN CASH AND CASH EQUIVALENTS		411,520			99,366
CASH AND CASH EQUIVALENTS, BEGINNING OF THE PERIOD		33,538			65,346
CASH AND CASH EQUIVALENTS, END OF THE PERIOD		445,058			164,712

See accompanying notes to separate financial statements.

WOORI FINANCE HOLDINGS CO., LTD.

NOTES TO SEPARATE FINANCIAL STATEMENTS

FOR THE SIX MONTHS ENDED JUNE 30, 2012 AND 2011

1. GENERAL

Woori Finance Holdings Co., Ltd. (hereinafter referred to “Woori Finance Holdings” or the “Company”) was incorporated on March 27, 2001, to manage the following five financial institutions: Woori Bank, Kyongnam Bank, Kwangju Bank, Peace Bank of Korea(merged into Woori Bank on March 31, 2004) and Woori Investment Bank (merged into Woori Bank on July 31, 2003), whose shares were contributed to the Company by the Korea Deposit Insurance Corporation (the “KDIC”) in accordance with the provisions of the Financial Holding Company Act. As a result of its functional restructuring, the Company owns 10 subsidiaries including Woori Bank and 129 second-tier subsidiaries including Woori Credit Information Co., Ltd. as of June 30, 2012.

As its incorporation, the Company’s stock amounted to 3,637,293 million Won, consisting of 727,458,609 common shares (5,000 Won per share) issued. As a result of several capital increases, exercise of warrants and conversion rights since incorporation, the Company’s stock amounted to 4,030,077 million Won, consisting of 806,015,340 common shares issued, as of June 30, 2012. KDIC owns 459,198,609 shares out of total outstanding shares, representing 56.97% ownership of the Company.

On June 24, 2002, the Company listed its common shares on the Korea Exchange (“KRX”). On September 29, 2003, the Company registered with the Securities and Exchange Commission in the United States of America and listed its American Depositary Shares on the New York Stock Exchange.

2. SIGNIFICANT BASIS OF PREPARATION AND ACCOUNTING POLICIES

(1) Basis of presentation of financial statements

The Company’s interim separate financial statements for the six months ended June 30, 2012 are prepared in accordance with K-IFRS 1034 Interim Financial Reporting. It is necessary to use the annual financial statement for the year ended December 31, 2011 for the understanding of the interim financial statements.

The accompanying financial statements are the Company’s separate financial statements in accordance with K-IFRS 1027 Consolidated and Separate Financial Statements.

Unless stated below, the accounting policies have been applied consistently with the annual separate financial statements in order to prepare the separate financial statements for the six months ended June 30, 2012.

The Company has newly adopted the following new standards and interpretations that made changes in accounting policies.

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. The Company’s adoption of the amendments did not have any impact on its separate financial statements.

- 2 -

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 non-depreciable property and equipment that are measured using revaluation model in accordance with K-IFRS 1016 Property, plant and equipment, regardless of the measurement method of book value of non-depreciable property and equipment, are presumed to be recovered through sale for the purposes of measuring deferred taxes. The Company’s adoption of the amendments did not have any impact on its separate financial statements.

Amendments to K-IFRS 2114 – Minimum Funding Requirements

The amendments permit the benefit of prepayment to be recognised as an asset. The Company’s adoption of the amendments did not have any impact on its separate financial statements.

The Company has not applied the following new and revised IFRSs that have been issued but are not yet effective:

Amendments to K-IFRS 1001 – Presentation of Financial Statements

The amendments to K-IFRS 1001 relate to separate presentation of the items that would not be reclassified as net income subsequently and the items that would be reclassified as net income among the other comprehensive income items on ‘comprehensive income statement’, and presentation of the related tax that are allocated to those times proportionately in the case of presentation of the amount before tax,. The amendments to K-IFRS 1001 are effective for annual periods beginning on or after July 1, 2012.

Amendments to K-IFRS 1019 – Employee Benefits

The amendments to K-IFRS 1019 relate to eliminate on of the ‘corridor approach’ permitted under the previous version of K-IFRS 1019. The amendments to K-IFRS 1019 are effective for annual periods beginning on or after January 1, 2013.

Enactment 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.

The Company anticipates that the amendments and enactment listed above may not have significant impact on the Company’s financial statements.

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 significant judgment which the management made about the application of the Company’s accounting policies and key sources of uncertainty in estimate do not differ from those used in preparing the financial statements for the year ended December 31, 2011.

4. RISK MANAGEMENT

The Company’s operating activity is exposed to various financial risks; hence, the Company is required to analyze and assess the level of complex risks, determine the permissible level of risks or manage the risks. The Company’s risk management procedure is set for improvement in the quality of assets and investments held by making a decision about how to avoid or mitigate risks through the identification of the cause of the potential risk and its impact.

The Company has established an approach to manage the acceptable level of risks to the Company and eliminate the excessive risks in financial instruments in order to maximize its profit given the risks present, for which the Company has implemented processes for risk recognition, measurement and assessment, control, and monitoring and reporting.

- 3 -

The risk management department of the Company manages risks based on the Company’s policy. The risk management committee makes the decision on its risk strategy such as allocation of capital at risk and establishment of risk limit.

(1) Credit risk

Credit risk represents the possibility of financial loss incurred when the counterparty fails to fulfill its contractual obligations. The goal of credit risk management is to maintain the Company’s credit risk exposure to a permissible degree and to optimize its rate of return considering such credit risk.

1) Credit risk management

In order to measure its credit risk, the Company considers the possibility of failure in performing its obligation to its counterparties, credit exposure of the counterparty and the related default risk, and the rate of default loss. The Company uses credit rating model to assess the possibility of counterparty’s default risk and, when assessing the obligor’s credit grade, the Company utilizes a grade derived using statistical methods other than using the obligor’s financial statements and exercising management’s judgment.

2) Credit line management

The Company establishes the appropriate credit line per co-obligor, company and industry to manage credit risk and considers the management of co-obligors, total exposures and loan portfolios when a loan is approved.

3) Credit risk mitigation

The Company mitigates credit risk resulting from the obligor’s credit condition by using financial and physical collateral, guarantees, netting agreements and credit derivatives. The Company 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 Company regularly performs a revaluation of collateral reflecting such credit risk mitigation.

4) Maximum exposure to credit risk

The Company’s maximum exposure to credit risk is as follows in carrying amounts (Unit: Korean Won in millions):

	June 30, 2012
	Banks		Companies		Total
Loans neither overdue nor impaired		71,881		3,235		75,116
Loans overdue but not impaired		—		—		—
Impaired loans		—		—		—
Total		71,881		3,235		75,116
Provisions for credit losses		—		5		5
Net amount		71,881		3,230		75,111

	December 31, 2011
	Banks		Companies		Total
Loans neither overdue nor impaired		34,179		2,517		36,696
Loans overdue but not impaired		—		—		—
Impaired loans		—		—		—
Total		34,179		2,517		36,696
Provisions for credit losses		—		5		5
Net amount		34,179		2,512		36,691

All loans and receivables are maintained at or above the permissible level of credit rating.

(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.

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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 changes in the interest rates, credit spreads, foreign exchange rates and the price of equity securities.

1) Market risk management

For trading activities, the Company makes judgment to avoid, bear or mitigate risks by identifying the underlying source of the risks: measuring parameters and evaluating their appropriateness.

2) Market risk measurement

The Company uses both a standard risk measurement model approach and an internal risk measurement model approach to measure market risk. A standard risk measurement model is used to calculate individual market risk of owned capital, while an internal risk measurement model is used to calculate general capital market risk and it is used to measure internal risk.

3) Risk limit management

As of June 30, 2012 and December 31, 2011, the Company is not exposed to market risk in connection with trading activities.

4) Sensitivity analysis of market risk

The Company performs the sensitivity analysis for trading and non-trading activities. As of June 30, 2012 and December 31, 2011, the Company is exposed only to interest rate risk from non-trading activities.

Based on market risk sensitivity analysis of non-trading activities, Earning at Risk (“EaR”) and Value at Risk (“VaR”) are as follows (Unit: Korean Won in millions):

June 30, 2012						December 31, 2011
EaR			VaR			EaR			VaR
	(19,469	)		(148,730	)		(18,863	)		(157,009	)

5) Other market risk

The Company estimates and manages risks related to changes in interest rate due to the difference in the sensitivity of interest-yielding assets and liabilities. Cash flows of principal amounts and interests from interest bearing assets and liabilities by maturity date are as follows (Unit: Korean Won in millions):

		Total		Within 3 months		4 to 6 months		7 to 9 months		10 to 12 months		1 to 5 years
June 30, 2012	Loans and receivables		37,211		36,196		1,015		—		—		—
	Debentures		4,071,907		294,050		240,635		38,529		236,328		3,262,365
December 31, 2011	Loans and receivables		1,040		—		—		—		1,040		—
	Debentures		4,106,100		146,424		264,676		290,978		237,566		3,166,456

Cash flows include both principal and interest.

(3) Liquidity risk

Liquidity risk refers to the risk that the Company 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 the mismatching of uses of funds (liabilities) and sources of funds (assets) or unexpected cash outflows. All assets and liabilities on the separate statements of financial position and derivative financial instruments off-balance sheet are subject to liquidity risk management. Assets and liabilities are grouped by respective accounts under Asset Liability Management (“ALM”) in accordance with the characteristics of the accounts. The Company manages liquidity risk by identifying the maturity gap and gap ratio through various cash flows analysis (i.e. based on remaining maturity, contract period, etc.); while maintaining the gap ratio at or below the set limit.

- 5 -

2) Maturity analysis of non-derivative financial liabilities

The Company’s maturity analysis of non-derivative financial liabilities, according to the remaining maturity as of June 30, 2012 and December 31, 2011 are as follows (Unit: Korean Won in millions):

		Total		Within 3 months		4 to 6 months		7 to 9 months		10 to 12 months		1 to 5 years
June 30, 2012	Debentures		4,071,907		294,050		240,635		38,529		236,328		3,262,365
	Other financial liabilities		30,820		30,820		—		—		—		—
December 31, 2011	Debentures		4,106,100		146,424		264,676		290,978		237,566		3,166,456
	Other financial liabilities		30,632		30,632		—		—		—		—

The maturity analysis of non-derivative financial liabilities assumes that the contractual maturity is the same as the expected maturity and includes cash flows both from principal and interest.

(4) Capital risk management

Pursuant to Financial Holding Company Supervisory Regulation, the Company calculates and manages the debt ratio as ‘total liability divided by total equity subtracting regulatory reserve for credit loss’; and calculates the dual leverage ratio as ‘total invested amount on subsidiaries divided by total equity subtracting regulatory reserve for credit loss’, for capital risk management purposes.

Debt ratio and dual leverage ratio are as follows:

June 30, 2012						December 31, 2011
Debt ratio			Dual leverage ratio			Debt ratio			Dual leverage ratio
	26.03	%		121.57	%		27.36	%		125.40	%

5. CASH AND CASH EQUIVALENTS

Details of cash and cash equivalents are as follows (Unit: Korean Won in millions):

	June 30, 2012		December 31, 2011
Demand deposit		64,922		33,538
Time deposit		380,136		—
		445,058		33,538

6. LOANS AND RECEIVABLES

(1) Details of loans and receivables are as follows (Unit: Korean Won in millions):

	June 30, 2012			December 31, 2011
Deposits		36,189			—
Loans		1,000			1,000
Provisions for credit losses		(5	)		(5	)
Receivables		2,230			1,460
Accrued income		866			57
Refundable rent deposits		36,175			36,175
Present value discount on refundable deposits		(1,344	)		(1,996	)
		75,111			36,691

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(2) Details of changes in provisions for credit losses are as follows (Unit: Korean Won in millions):

	Six months ended June 30, 2012		Year ended December 31, 2011
Beginning balance		5		6
Reversal		—		(1	)
Ending balance		5		5

7. FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES

Fair value and book value of financial assets and liabilities measured at amortized costs are as follows (Unit: Korean Won in millions):

		June 30, 2012				December 31, 2011
		Fair Value		Book Value		Fair Value		Book Value
Financial assets	Loans and receivables (*1)		75,111		75,111		36,691		36,691
Financial liabilities	Debentures		3,754,167		3,654,251		3,758,636		3,653,968
	Other financial liabilities (*1)		30,820		30,820		30,632		30,632
			3,784,987		3,685,071		3,789,268		3,684,600

(*1) As the Company considers the difference between the book value and fair value to be no significant differences, it uses book value as the relevant fair value of financial assets and liabilities.

8. INVESTMENTS IN SUBSIDIARIES AND ASSOCIATES

Investments in subsidiaries and associates accounted for using the cost method are as follows (Unit: Korean Won in millions):

Company	Country		Financial year end as of		June 30, 2012				December 31, 2011
					Owner- ship (%)		Carrying value		Owner- ship (%)		Carrying value
Woori Bank		Korea		Dec. 31		100.0		13,621,824		100.0		13,621,824
Kwangju Bank		”		Dec. 31		100.0		976,291		100.0		976,291
Kyongnam Bank		”		Dec. 31		100.0		1,443,662		100.0		1,443,662
Woori FIS Co., Ltd.		”		Dec. 31		100.0		15,013		100.0		15,013
Woori Investment & Securities Co., Ltd.		”		Mar. 31		37.9		1,036,749		37.9		1,036,749
Woori F&I Co., Ltd.		”		Dec. 31		100.0		206,563		100.0		206,563
Woori Asset Management Co., Ltd.		”		Mar. 31		100.0		67,456		100.0		67,456
Woori Private Equity Co., Ltd.		”		Dec. 31		100.0		34,246		100.0		34,246
Woori Financial Co., Ltd.		”		Dec. 31		52.5		207,346		52.5		207,346
Woori Aviva Life Insurance Co., Ltd. (*1)		”		Mar. 31		51.6		106,053		51.6		106,053
Woori FG Savings Bank		”		Jun. 30		100.0		110,000		100.0		110,000
								17,825,203				17,825,203

(*1) As a jointly controlled entity, Woori Aviva Life Insurance Co., Ltd. is not included in the consolidated subsidiaries.

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9. FIXED ASSETS

(1) Details of fixed assets are as follows (Unit: Korean Won in millions):

	June 30, 2012
	Properties for business purposes			Structures in leased office			Total
Acquisition cost		1,728			551			2,279
Accumulated depreciation		(1,416	)		(386	)		(1,802	)
		312			165			477

	December 31, 2011
	Properties for business purposes			Structures in leased office			Total
Acquisition cost		1,688			539			2,227
Accumulated depreciation		(1,358	)		(354	)		(1,712	)
		330			185			515

(2) Details of changes in fixed assets are as follows (Unit: Korean Won in millions):

	For the six months ended June 30, 2012
	Properties for business purposes			Structures in leased office			Total
Beginning balance		330			185			515
Acquisition		40			13			53
Depreciation		(58	)		(33	)		(91	)
Ending balance		312			165			477

	For the year ended December 31, 2011
	Properties for business purposes			Structures in leased office			Total
Beginning balance		456			137			593
Acquisition		111			105			216
Depreciation		(237	)		(57	)		(294	)
Ending balance		330			185			515

- 8 -

10. INTANGIBLE ASSETS

(1) Details of intangible assets are as follows (Unit: Korean Won in millions):

	June 30, 2012
	Computer software			Industrial property rights			Membership deposit		Total
Acquisition cost		37			118			15		170
Accumulated depreciation		(36	)		(97	)		—		(133	)
		1			21			15		37

	December 31, 2011
	Computer software			Industrial property rights			Membership deposit		Total
Acquisition cost		37			107			15		159
Accumulated depreciation		(36	)		(94	)		—		(130	)
		1			13			15		29

(2) Details of changes in intangible assets are as follows (Unit: Korean Won in millions):

	For the six months ended June 30, 2012
	Computer software		Industrial property rights			Membership deposit		Total
Beginning balance		1		13			15		29
Acquisition		—		11			—		11
Amortization		—		(3	)		—		(3	)
Ending balance		1		21			15		37

	For the year ended December 31, 2011
	Computer software			Industrial property rights			Membership deposit		Total
Beginning balance		2			17			15		34
Amortization		(1	)		(4	)		—		(5	)
Ending balance		1			13			15		29

11. OTHER ASSETS

Details of other assets are as follows (Unit: Korean Won in millions):

	June 30, 2012		December 31, 2011
Prepaid expenses		1,551		2,285
Plan assets (Note 13)		—		13
Payment in suspense		—		48
Consolidated corporate taxes assets		130,264		202,525
		131,815		204,871

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12. DEBENTURES AND BORROWINGS

(1) Details of debentures are as follows (Unit: Korean Won in millions):

	Issuance date	Annual interest rate (%)		Maturity	June 30, 2012			December 31, 2011
Series 18-2nd bonds	Aug. 30, 2007		5.79	Aug. 30, 2012		250,000			250,000
Series 19-2nd bonds	Dec. 6, 2007		6.63	Dec. 6, 2012		140,000			140,000
Series 20-2nd bonds	Apr. 14, 2008		5.72	Apr. 14, 2013		170,000			170,000
Series 23-3rd bonds	Dec. 9, 2008		8.19	Dec. 9, 2013		60,000			60,000
Series 25-2nd bonds	Mar. 24, 2009		5.39	Mar. 24, 2012		—			100,000
Series 25-3rd bonds	Mar. 24, 2009		5.70	Mar. 24, 2014		150,000			150,000
Series 26th bonds	Mar. 31, 2009		6.36	Jan. 1, 2015		300,000			300,000
Series 27-1st bonds	Jun. 15, 2009		5.43	Jun. 15, 2012		—			220,000
Series 27-2nd bonds	Jun. 15, 2009		5.94	Jun. 15, 2014		80,000			80,000
Series 28-1st bonds	Nov. 13, 2009		5.21	Nov. 13, 2012		60,000			60,000
Series 28-2nd bonds	Nov. 13, 2009		5.43	Nov. 13, 2013		140,000			140,000
Series 29-1st bonds	May 20, 2010		4.45	May 20, 2013		30,000			30,000
Series 29-2nd bonds	May 20, 2010		5.11	May 20, 2015		220,000			220,000
Series 30-1st bonds	Aug. 3, 2010		4.51	Aug. 3, 2013		50,000			50,000
Series 30-2nd bonds	Aug. 3, 2010		4.97	Aug. 3, 2015		250,000			250,000
Series 31-1st bonds	Nov. 9, 2010		3.98	Nov.9, 2013		100,000			100,000
Series 31-2nd bonds	Nov. 9, 2010		4.32	Nov.9, 2014		150,000			150,000
Series 32nd bonds	Feb. 24, 2011		4.39	Feb. 24, 2014		50,000			50,000
Series 33rd bonds	Mar. 14, 2011		4.23	Mar. 14, 2014		160,000			160,000
Series 34-1st bonds	May 24, 2011		4.06	May 24, 2014		100,000			100,000
Series 34-2nd bonds	May 24, 2011		4.22	May 24, 2016		100,000			100,000
Series 35-1st bonds	Aug. 25, 2011		4.04	Aug. 25, 2014		100,000			100,000
Series 35-2nd bonds	Aug. 25, 2011		4.08	Aug. 25, 2016		150,000			150,000
Series 36-1st bonds	Oct. 28, 2011		4.08	Oct. 28, 2013		170,000			170,000
Series 36-2nd bonds	Oct. 28, 2011		4.16	Oct. 28, 2014		180,000			180,000
Series 36-3rd bonds	Oct. 28, 2011		4.30	Oct. 28, 2016		180,000			180,000
Series 37th bonds	Feb. 7, 2012		3.96	Feb. 7, 2017		100,000			—
Series 38th bonds	Jun. 27, 2012		3.75	Jun. 27, 2015		220,000			—
						3,660,000			3,660,000
Less: discounts on bonds payable						(5,749	)		(6,032	)
Total						3,654,251			3,653,968

All debentures are to be paid in full at maturity.

(2) There is no borrowing outstanding as of June 30, 2012 and December 31, 2011. The Company has contracts of credit line with banks as follows as of June 30, 2012 (Unit: Korean Won in millions):

	Annual interest rate (%)	Maturity		Line of credit
Hana Bank	CD(3M)+1.65		November 30, 2012		100,000
Kookmin Bank	CD(3M)+1.65		November 30, 2012		150,000
					250,000

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13. RETIREMENT BENEFIT OBLIGATION

(1) Details of retirement benefit obligation are as follows (Unit: Korean Won in millions):

	June 30, 2012			December 31, 2011(*)
Retirement benefit obligation		6,210			5,194
Fair value of plan assets		(5,017	)		(5,207	)
		1,193			(13	)

(*) Excess of the fair value of plan assets over retirement benefit obligation is recorded as on other asset (Note 11).

(2) Changes in retirement benefit obligation are as follows (Unit: Korean Won in millions):

	Six months ended June 30, 2012			Year ended December 31, 2011
Beginning balance		5,194			3,544
Current service cost		747			1,354
Interest expense		111			165
Actuarial loss		130			867
Retirement benefit paid		(304	)		(898	)
Transfer from related parties		332			162
Ending balance		6,210			5,194

(3) Changes in plan assets are as follows (Unit: Korean Won in millions):

	Six months ended June 30, 2012			Year ended December 31, 2011
Beginning balance		5,207			3,678
Expected gain on plan assets		121			146
Actuarial loss		(29	)		(23	)
Employer’s contributions		—			1,985
Retirement benefit paid		(282	)		(579	)
Ending balance		5,017			5,207

(4) Plan assets are as follows (Unit: Korean Won in millions):

	June 30, 2012		December 31, 2011
Equity instruments		77		77
Deposits		4,940		5,130
		5,017		5,207

(5) The amounts recorded in profit operating income as retirement benefit plan are as follows (Unit: Korean Won in millions):

	Six months ended June 30, 2012			Year ended December 31,  2011
Current service cost		747			1,354
Interest expense		111			165
Expected gain on plan assets		(121	)		(146	)
Actuarial loss		159			890
		896			2,263

(6) Actuarial assumptions used in retirement benefit obligation assessment are as follows:

	June 30, 2012			December 31, 2011
Discount rate		4.04	%		4.47	%
Inflation rate		3.00	%		3.00	%
Expected rate of return on plan assets		4.24	%		4.24	%
Future wage growth rate		5.18	%		5.34	%

- 11 -

14. OTHER FINANCIAL LIABILITIES AND OTHER LIABILITIES

Details of other financial liabilities and other liabilities are as follows (Unit: Korean Won in millions):

	June 30, 2012		December 31, 2011
Other financial liabilities:
Accounts payables		766		2,623
Accrued expenses		27,296		25,913
Dividends payables		2,604		1,942
Withholdings		154		154
Total		30,820		30,632
Other liabilities:
Withholding taxes		231		1,537
Consolidated corporate taxes liabilities		3,590		1,164
Others		142		122
Total		3,963		2,823

15. CAPITAL STOCK AND SURPLUS

(1) The total number of authorized shares is as follows (Unit: Korean Won except for shares):

	June 30, 2012		December 31, 2011
Authorized shares of common stock		2,400,000,000 shares		2,400,000,000 shares
Par value		5,000		5,000
Issued shares of common stock		806,015,340 shares		806,015,340 shares

(2) Details of capital surplus are as follows (Unit: Korean Won in millions)

	June 30, 2012		December 31, 2011
Capital in excess of par value		109,025		109,025
Other capital surplus		1		1
		109,026		109,026

16. HYBRID SECURITIES

The bond-type hybrid securities classified as equity are as follows (Unit: Korean Won in millions):

	Issuance date		Maturity		Annual interest rate (%)		June 30, 2012			December 31, 2011
The 1st bond-type hybrid securities		Nov. 22, 2011		Nov. 22, 2041		5.91		310,000			310,000
The 2nd bond-type hybrid securities		Mar. 8, 2012		Mar. 8, 2032		5.83		190,000			—
Issuing expense								(1,593	)		(990	)
								498,407			309,010

Although these instruments have contractual maturity dates and stipulated contractual interest payments, the contractual agreements allow the Company to indefinitely extend the maturity date and defer the payment of interest without a modification of the other terms of the instrument such as interest rate, etc. If the Company makes a resolution not to pay dividends on ordinary stocks and then, the Company is exonerated from interest payment on the hybrid securities.

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17. OTHER EQUITY

As of June 30, 2012 and December 31, 2011, the Company holds 1,999 shares (14 million Won) of its treasury stock, respectively, acquired as a buyback of odd-lot share when exchanging the stock of Woori Investment & Securities Co., Ltd.

18. RETAINED EARNINGS

(1) Retained earnings are as follows (Unit: Korean Won in millions):

	June 30, 2012		December 31, 2011
Earned surplus reserve		1,035,849		1,005,401
Voluntary reserve		8,528,008		8,256,000
Retained earnings carried forward		461,558		504,721
		10,025,415		9,766,122

(2) In accordance with the Regulations for Supervision of Financial Holding Companies (“RSFHC”), if provision for credit loss under K-IFRS for the accounting purpose is lower than those for the regulatory purpose required by RSFHC, the Company shall disclose such difference as regulatory planned reserve for credit loss.

(3) Regulatory reserve for credit loss is as follows (Unit: Korean Won in millions):

	June 30, 2012		December 31, 2011
Beginning balance		8		—
Planned reserve for credit loss		8		8
Ending balance		16		8

(4) Reserve provided and net income after the reserve provided are as follows (Unit: Korean Won in millions, except for earning per share):

	2012					2011
	Three months ended June 30			Six months ended June 30		Three months ended June 30			Six months ended June 30
Reserve provided		(37	)		8		—			—
Net income after the reserve provide		(28,023	)		473,380		(35,487	)		411,713
Earnings per share after the reserve provided (*)		(44	)		572		(44	)		511

(*) Earnings per share after the planned reserve provided is calculated by deducting dividends on hybrid securities from net income after the reserve provided.

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19. NET INTEREST INCOME (EXPENSE)

Interest income and expenses incurred for the three months and six months ended June 30, 2012 and 2011, respectively, are as follows (Unit: Korean Won in millions):

	2012						2011
	Three months ended June 30			Six months ended June 30			Three months ended June 30			Six months ended June 30
Interest income
Interest income on due from banks		4,187			5,077			1,948			2,608
Interest income on loans		12			25			13			25
Interest income on others		328			653			284			567
Sub-total		4,527			5,755			2,245			3,200
Interest expense
Interest expenses on borrowings		—			(124	)		—			(35	)
Interest expenses on debentures		(46,293	)		(93,935	)		(56,362	)		(113,003	)
Sub-total		(46,293	)		(94,059	)		(56,362	)		(113,038	)
Total		(41,766	)		(88,304	)		(54,117	)		(109,838	)

No financial asset impairment incurred for the six months ended June 30, 2012 and 2011, respectively. As a result, all interest income were incurred from performing financial assets.

20. NET FEES INCOME

Fee incomes and expenses are as follows (Unit: Korean Won in millions):

	2012						2011
	Three months ended June 30			Six months ended June 30			Three months ended June 30			Six months ended June 30
Fee income
Brand royalty income		15,035			30,072			17,813			35,626
Fee expense
Fee for legal advice		(4	)		(7	)		(37	)		(1,458	)
Other fees expense		(1,536	)		(2,139	)		(1,791	)		(3,053	)
Sub-total		(1,540	)		(2,146	)		(1,828	)		(4,511	)
Total		13,495			27,926			15,985			31,115

21. DIVIDEND INCOME

Dividend income is as follows (Unit: Korean Won in millions):

	2012				2011
	Three months ended June 30		Six months ended June  30		Three months ended June 30		Six months ended June 30
Woori Bank		—		479,053		—		387,725
Kwangju Bank		—		28,213		—		36,912
Kyungnam Bank		—		7,976		—		50,503
Woori Investment & Securities		17,348		17,348		13,897		13,897
Woori F&I Co., Ltd.		—		21,574		—		20,220
Woori Asset Management		—		—		1,673		1,673
Woori Financial Co., Ltd.		—		8,108		—		5,078
Total		17,348		562,272		15,570		516,008

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22. OTHER NET OPERATING INCOME (EXPENSE)

(1) Details of other operating income and expenses as follows (Unit: Korean Won in millions):

	2012						2011
	Three months ended June 30			Six months ended June 30			Three months ended June 30			Six months ended June 30
Other operating income:
Miscellaneous income		3,103			3,431			108			116
Other operating expenses:
Donation		(1,313	)		(1,770	)		(305	)		(2,260	)
Miscellaneous loss		—			—			(13	)		(13	)
Administrative expenses		(18,823	)		(30,119	)		(12,704	)		(23,235	)
Sub-total		(20,136	)		(31,890	)		(13,022	)		(25,508	)
Total		(17,033	)		(28,458	)		(12,914	)		(25,392	)

(2) Administrative expenses incurred are as follows (Unit: Korean Won in millions):

	2012				2011
	Three months ended June 30		Six months ended June 30		Three months ended June 30		Six months ended June 30
Short term employee benefits		6,030		11,336		6,226		10,716
Retirement benefit		495		896		342		980
Fringe benefits		963		1,620		738		1,319
Traveling expenses		166		266		226		479
Compensation of actual expense		308		670		365		683
Rent		415		823		377		750
Maintenance expense		224		448		205		413
Depreciation		45		91		104		206
Amortization expenses		2		3		1		2
Operating promotion expenses		712		1,273		543		1,056
Advertising		9,328		10,982		1,895		3,654
Taxes and dues		42		159		32		142
Insurance premium		82		163		85		169
Others		11		1,389		1,565		2,666
Total		18,823		30,119		12,704		23,235

23. INCOME TAX EXPENSE

(1) Income tax expenses are as follows (Korean Won in millions):

	For the six months ended June 30
	2012			2011
Current income tax payable		—			—
Changes in deferred income taxes due to temporary differences (*1)		48			180
Income tax expense		48			180
(*1) Deferred income tax assets at the end of period		2,110			948
Deferred income tax assets at the beginning of period		2,158			1,128
Changes in deferred income taxes due to temporary differences		(48	)		(180	)

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(2) Reconciling items between income before income tax and income tax expenses are as follows (Korean Won in millions):

	For the six months ended June 30
	2012			2011
Income before income tax		473,436			411,893
Tax calculated at statutory tax rate of 24.2%		114,557			99,664
Tax effect on reconciling items:
Non-taxable income (498,612 and 460,507 for six months ended June 30, 2012 and 2011, respectively)		(120,649	)		(111,427	)
Non-deductible expenses (645 and 662 for six months ended June 30, 2012 and 2011, respectively)		156			160
Others		5,984			11,783
Income tax expense		48			180
Effective tax rate		0.01	%		0.04	%

(3) Details of temporary differences and tax loss carry-forwards are as follows (Korean Won in millions):

	January 1, 2012			Decrease (*1)			Increase (*1)			June 30, 2012
Investment in subsidiaries and associates		(8,927,317	)		—			—			(8,927,317	)
Accrued expenses		6,775			6,775			6,059			6,059
Retirement benefit obligation		2,782			282			2,099			4,599
Plan assets		(2,795	)		(282	)		(2,134	)		(4,647	)
Depreciation		53			26			77			104
Dividend payable on hybrid equities		1,942			1,942			2,604			2,604
Unpaid donation		159			159			—			—
Tax loss carry-forwards		184,765			—			—			184,765
Total		(8,733,636	)		8,902			8,705			(8,733,833	)
Unrecognized amount (*2)		(8,742,552	)								(8,742,552	)
Recognized amount		8,916									8,719
Deferred tax assets		2,158									2,110

	January 1, 2011			Decrease (*1)			Increase (*1)			December 31, 2011
Investment in subsidiaries and associates		(8,927,317	)		—			—			(8,927,317	)
Accrued expenses		3,673			3,673			6,775			6,775
Retirement benefit obligation		2,426			642			998			2,782
Plan assets		(2,609	)		(642	)		(828	)		(2,795	)
Depreciation		(166	)		2			221			53
Provisions		1			1			—			—
Others		1,435			1,435			—			—
Dividend payable on hybrid equities		—			—			1,942			1,942
Unpaid donation		—			—			159			159
Tax loss carry-forwards		241,730			56,965			—			184,765
Total		(8,680,827	)		62,076			9,267			(8,733,636	)
Unrecognized amount (*2)		(8,685,587	)								(8,742,552	)
Recognized amount		4,760									8,916
Deferred tax assets		1,128									2,158

(*1) Reflected the adjustment based on the reported tax returns.

(*2) Deferred income tax liabilities arising from the temporary differences of 8,927,317 million Won of investments in subsidiaries and associates as of June 30, 2012 and December 31, 2011, were not recognized where the Company is able to control the timing of the reversal of the difference and it is uncertain that the reversal will not occur in the foreseeable futures. Also, deferred income tax assets were not recognized for the uncertainty of realizing loss carry-forwards of 184,765 million Won as of June 30, 2012 and December 31, 2011.

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(4) Deductible tax loss carry forwards are as follows (Korean Won in millions):

Year incurred	Incurred (*1)		Expired		Remained		Expiration Date
2008		12,562		—		12,562		December 31, 2013
2009		172,203		—		172,203		December 31, 2019	(*2)
		184,765		—		184,765

(*1) Reflects adjustments based on reported tax returns

(*2) As a result of revision on the Corporate Income Tax Law, expiration of unused tax loss carry-forward has extended to10 years.

(5) The Company recorded the consolidated corporate taxes liabilities amounting to 126,673 million Won and 201,361 million Won to be paid on behalf of the subsidiaries those are included in consolidated taxation as of June 30, 2012 and December 31, 2011, respectively.

24. EARNINGS PER SHARE (EPS)

Basic EPS is calculated by earnings subtracting the dividends paid to holders of preferred stock and hybrid securities from the net income attributable to ordinary shareholders from the statements of comprehensive income and dividing by the weighted average number of common shares outstanding (Unit: Korean Won in millions except for EPS):

	2012						2011
	Three months ended June 30			Six months ended June 30			Three months ended June 30			Six months ended June 30
Net income (loss) on common shares		(28,060	)		473,388			(35,487	)		411,713
Dividend on hybrid securities		(7,327	)		(12,592	)		—			—
Net income (loss) attributable to common shareholders		(35,387	)		460,796			(35,487	)		411,713
Weighted average number of common shares outstanding(shares)		806,013,341			806,013,341			806,012,779			806,012,779
Basic EPS		(44	)		572			(44	)		511

Meanwhile, as there is no dilution effect for the three months and six months ended June 30, 2012 and 2011, respectively, the Company’s diluted EPS is equal to its common earnings per share.

25. INSURANCE

As of June 30, 2012, the Company carries director and officer liability insurance and property insurance with Samsung Fire & Marine Insurance Co., Ltd. The insurance coverages are 50,000 million Won and 488 million Won, respectively.

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26. RELATED PARTY TRANSACTIONS

Significant balances as of June 30, 2012 and December 31, 2011 and major transactions for the six months ended June 30, 2012 and 2011 between the Company and its subsidiaries, jointly controlled entities or associates are as follows:

(1) Related parties

Government related entity	Consolidated subsidiaries	Jointly controlled entities and associates
Korea deposit	Woori Bank, Kyongnam Bank, Kwangju Bank,	Woori Aviva Life Insurance Co., Ltd.,
insurance	Woori FIS Co., Ltd., Woori F&I Co., Ltd.,	Woori Service Networks Co., Ltd.,
corporation	Woori Investment Securities Co., Ltd.,	Korea Credit Bureau Co., Ltd.,
	Woori Asset Management Co., Ltd.,	Korea Finance Security Co., Ltd.,
	Woori Private Equity Co., Ltd.,	Woori Blackstone Korea Opportunity
	Woori Financial Co., Ltd.,	Private Equity Fund I,
	Woori FG Savings Bank,	Kumho Tires Co., Ltd.,
	Woori Credit Information Co., Ltd.,	United PF 1st Corporate Financial
	Woori America Bank, Woori China Bank,	Stability, LIG E&C Co., Ltd,
	Woori Global Markets Asia Ltd.,	Hyunjin Co., Ltd, Pi City Co., Ltd.,
	Woori Russia Bank, P.T. Bank Woori Indonesia,	Chin Hung International, Inc.
	Korea BTL Infrastructure Fund,	Seoul Lakeside Co., Ltd.,
	Woori Fund Service Co., Ltd.,	Woori Renaissance Holdings,
	Woori Futures Co., Ltd.,	Phoenix Digital Tech Co., Ltd.,
	Woori Investment Securities Int’l Ltd.,	Bonghwang Semiconductor Yuhan
	Woori Investment Securities (H.K.) Ltd.,	Gongsa,
	Woori Investment Securities America Inc.,	Chungdo Woori Century Security Corp,
	MARS First Private Equity Fund,	Ltd.,
	MARS INS First Ltd,	Woori SB Fifth Asset Securitization
	MARS Second Private Equity Fund,	Specialty and 17 SPCs.
	Woori Investment Asia PTE Ltd.,
	Woori Absolute Partners PTE Ltd.,
	Woori Absolute Global Opportunity Fund,
	LG Investment Holding B.V. (Amsterdam) GG, Connacht Capital Market Investment,
	Woori Korindo Securities Indonesia,
	Woori CBV Securities Corporation,
	Woori Absolute Return Investment Strategies Fund, Kumho Investment Bank Co., Ltd.,
	Sahn Eagles LLC, Two Eagles LLC,
	Woori EL Co., Ltd., Woori Giant First Co., LLC.
	Woori Investment Advisory Co., Ltd., (Beijing), Kofc Woori Growth Champ Private Equity Fund,
	Woori AMC Co., Ltd., Woori Private Equity Fund,
	Woori Bank principal and interest Trust and 2 principal and interest trusts,
	Woori F&I Seventh Asset Securitization Specialty and 50 SPCs,
	Woori Heritage Longshort Private Equity trusts I and 42 beneficiary certificates.

- 18 -

(2) Receivables and payables with consolidated subsidiaries are as follows (Unit: Korean Won in millions):

		June 30, 2012		December 31, 2011
Receivables	Woori Bank		34,831		34,178	Leasehold deposits
			445,058		33,538	Cash and cash equivalents
			529		53	Interest receivables
			1,344		1,997	Prepaid expenses
			114,317		197,938	Consolidated corporate taxes assets
	Kyongnam Bank		7,976		—	Deposits
			73		—	Interest receivables
			9,842		—	Consolidated corporate taxes assets
	Kwangju Bank		28,213		—	Deposits
			259		—	Interest receivables
	Woori FIS		42		785	Consolidated corporate taxes assets
			12		—	Receivables
	Woori PE		344		368	Consolidated corporate taxes assets
	Woori Asset Management		200		—	Consolidated corporate taxes assets
	Woori Financial		1,000		1,000	Loans
			4		4	Interest receivables
	Woori F&I		3,180		—	Consolidated corporate taxes assets
	Woori Credit Information		553		560	Consolidated corporate taxes assets
	Woori AMC		1,644		2,305	Consolidated corporate taxes assets
	Woori FG Savings Bank		131		569	Consolidated corporate taxes assets
	Woori Fund Service		11		—	Consolidated corporate taxes assets
			649,563		273,295
Payables	Woori Bank		285		483	Accounts payables
			5,017		5,207	Retirement plan assets
	Kwangju Bank		3,590		—	Consolidated corporate taxes liabilities
	Woori F&I		—		780	Consolidated corporate taxes liabilities
	Woori Asset Management		—		382	Consolidated corporate taxes liabilities
	Woori FIS		319		179	Accounts payables
	Woori Fund Service		—		2	Consolidated corporate taxes liabilities
			9,211		7,033

(3) Receivables and payables with related parties other than consolidated subsidiaries are as follows (Unit: Korean Won in millions):

		June 30, 2012		December 31, 2011
Receivables	Woori Aviva Life Insurance Co., Ltd.		2,009		1,460	Receivables

- 19 -

(4) Transactions with consolidated subsidiaries (Unit: Korean Won in millions):

		For the six months ended June 30
		2012		2011
Revenues	Woori Bank		23,271		29,461	Brand royalty income
			4,745		1,906	Interest on deposits
			653		566	Interest related to leasehold deposits
			479,053		387,725	Dividends
			106		—	Other operating income
	Kyongnam Bank		871		699	Brand royalty income
			73		408	Interest on deposits
			7,976		50,503	Dividends
	Kwangju Bank		578		470	Brand royalty income
			259		294	Interest on deposits
			28,213		36,912	Dividends
	Woori Financial		295		194	Brand royalty income
			25		25	Interest on loans
			8,108		5,078	Dividends
	Woori FIS		290		215	Brand royalty income
			142		—	Other operating income
	Woori F&I		52		35	Brand royalty income
			21,574		20,220	Dividends
	Woori Investment & Securities		3,888		4,191	Brand royalty income
			124		—	Other operating income
			17,348		13,897	Dividends
	Woori Asset Management		36		34	Brand royalty income
			—		1,673	Dividends
	Woori PE		8		3	Brand royalty income
	Woori Futures		48		—	Brand royalty income
	Woori AMC		16		—	Brand royalty income
	Woori Credit Information		36		—	Brand royalty income
			597,788		554,509
Expenses	Woori Bank		406		376	Maintenance expenses
			653		566	Rent
			38		181	Retirement benefit
			57		—	Service fees
			106		—	Other fees
	Woori FIS		1,141		938	Service fees
			—		18	Other fees
			2,401		2,079

(5) Transactions with related parties other than consolidated subsidiaries are as follows (Unit: Korean Won in millions):

		For the six months ended June 30
		2012		2011
Revenues	Woori Aviva Life Insurance Co., Ltd.		683		323	Brand royalty income

- 20 -

(6) Compensation to managements are as follows (Unit: Korean Won in millions):

	For the six months ended June 30
	2012		2011
Short-term employee benefit		2,187		2,238
Retirement benefit		83		150
		2,270		2,388

27. STATEMENTS OF CASH FLOW

The significant transactions without cash flows are as follows (Unit: Korean Won in million):

	For the six months ended June 30
	2012		2011
Dividend of hybrid securities		662		—

28. AGREEMENT ON THE IMPLEMENTATION OF A MANAGEMENT PLAN

(1) Since December 30, 2000, the Company’s three subsidiaries, Woori Bank, Kyongnam Bank and Kwangju Bank, and KDIC have entered into agreements to implement management improvement plans. Under the agreements, the three subsidiaries are obligated to improve their respective financial ratios, such as Bank of International Settlements (“BIS”) capital ratio, general and administrative ratio, non-performing loan rate and adjusted operating income per person. If the three subsidiaries fail to make improvements, the KDIC can enforce the three subsidiaries to increase or decrease their capital, pursue mergers, transfer of loans and deposits, or close or sell parts of their business operations.

(2) Since July 2, 2001, the Company and KDIC have entered into an agreement whereby the Company would integrate the aforementioned subsidiaries, Woori Bank, Kyongnam Bank and Kwangju Bank, and improve their performances. The agreement stipulates that the Company should build a governance and management structure plan, implement a short-term business improvement strategy, enhance subsidiaries’ competitiveness, expedite privatization, meet the financial ratio targets, and dispose of business units in case the plan fails.

(3) In addition to the agreement on July 2, 2001, in order to implement the aforementioned agreements, the Company and its three subsidiaries entered management implementation agreements. Pursuant to the agreements, the three subsidiaries should meet management goals given by the Company, consult with the Company about material business decisions before execution, and prepare and implement a detailed business plan in conformity with the Company’s business strategies. If the three subsidiaries fail to implement the management improvement plan, the Company may order the three subsidiaries to limit sales of the specific financial products, investments in fixed assets, promotion of new business or new equity investment, or to close or merge their branch operations and subsidiaries.

- 21 -