Exhibit 99.1

WOORI BANK AND SUBSIDIARIES

CONSOLIDATED FINANCIAL STATEMENTS

AS OF SEPTEMBER 30, 2016 AND FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2016 AND 2015

ATTACHMENT: INDEPENDENT ACCOUNTANTS’ REVIEW REPORT

WOORI BANK

	Deloitte Anjin LLC 9F., One IFC, 10, Gukjegeumyung-ro Youngdeungpo-gu, Seoul 07326, Korea Tel: +82 (2) 6676 1000 Fax: +82 (2) 6674 2114 www.deloitteanjin.co.kr

INDEPENDENT ACCOUNTANTS’ REVIEW REPORT

English Translation of a Report Originally Issued in Korean

To the Shareholders and the Board of Directors of

Woori Bank:

Report on the Consolidated Financial Statements

We have reviewed the accompanying consolidated interim financial statements of Woori Bank and subsidiaries (the “Group”). The financial statements consist of the consolidated statement of financial position as of September 30, 2016, the related consolidated statements of comprehensive income for the three and nine months ended September 30, 2016 and 2015, the related consolidated statements of changes in equity and cash flows for the nine months ended September 30, 2016 and 2015, respectively, and a summary of significant accounting policies and other explanatory information.

Management’s Responsibility for the Consolidated Interim Financial Statements

The Group’s management is responsible for the preparation and fair presentation of accompanying consolidated interim financial statements in accordance with Korean International Financial Reporting Standards (“K-IFRS”) and for such internal control as management determines is necessary to enable the preparation of consolidated interim 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 interim 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 consolidated interim financial statements of the Group are not presented fairly, in all material respects, in accordance with K-IFRS 1034, Interim Financial Reporting.

Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee (“DTTL”),

its network of member firms, and their related entities. DTTL and each of its member firms are legally separate and independent entities.

DTTL (also referred to as “Deloitte Global”) does not provide services to clients.

Please see www.deloitte.com/kr/about for a more detailed description of DTTL and its member firms.

Member of Deloitte Touche Tohmatsu Limited

Others

We audited the consolidated statement of financial position as of December 31, 2015, and the related consolidated statements of comprehensive income, changes in equity and cash flows for the year ended December 31, 2015 (not presented in the accompanying consolidated interim financial statements, all expressed in Korean Won), in accordance with auditing standards generally accepted in the Republic of Korea. We expressed an unqualified opinion in our independent auditors’ report dated on March 4, 2016. The consolidated statement of financial position as of December 31, 2015 presented as a comparative purpose in the accompanying financial statements does not differ, in all material respects, from the audited consolidated statement of financial position as of December 31, 2015.

November 14, 2016

Notice to Readers

This report is effective as of November 14, 2016, the accountants’ review report date. Certain subsequent events or circumstances may have occurred between the accountants’ review report date and the time the accountants’ review report is read. Such events or circumstances could significantly affect the consolidated interim financial statements and may result in modifications to the accountants’ review report.

WOORI BANK AND SUBSIDIARIES

CONSOLIDATED FINANCIAL STATEMENTS

AS OF SEPTEMBER 30, 2016 AND FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2016 AND 2015

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

Kwang Goo Lee

Chairman and Chief Executive Officer

Main Office Address:	(Road Name Address) 51 Sogong-ro, Jung-gu, Seoul
	(Phone Number)          02-2002-3000

WOORI BANK AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

AS OF SEPTEMBER 30, 2016 AND DECEMBER 31, 2015

	September 30, 2016		December 31, 2015
	(Korean Won in millions)
ASSETS
Cash and cash equivalents (Note 6)		8,281,510		6,644,055
Financial assets at fair value through profit or loss (Notes 4,7,11,12,18 and 26)		5,717,809		5,132,657
Available-for-sale financial assets (Notes 4,8,11,12 and 18)		19,495,352		17,170,592
Held-to-maturity financial assets (Notes 4,9,11,12 and 18)		13,853,700		13,621,640
Loans and receivables (Notes 4,10,11,12,18,44 and 45)		261,188,233		244,842,062
Investments in joint ventures and associates (Note 13)		419,532		643,861
Investment properties (Note 14)		368,063		351,496
Premises and equipment (Notes 15 and 18)		2,437,926		2,471,206
Intangible assets and goodwill (Note 16)		418,543		419,806
Assets held for sale (Note 17)		14,445		17,904
Current tax assets (Note 42)		5,484		6,782
Deferred tax assets (Note 42)		145,363		210,597
Derivative assets (Notes 4,11,12 and 26)		273,499		183,128
Other assets (Notes 19 and 45)		212,405		143,286
Total assets		312,831,864		291,859,072
LIABILITIES
Financial liabilities at fair value through profit or loss (Notes 4,11,12,20 and 26)		3,725,749		3,460,561
Deposits due to customers (Notes 4,11,21 and 45)		220,465,585		209,141,826
Borrowings (Notes 4,11,12 and 22)		17,220,127		20,033,917
Debentures (Notes 4,11 and 22)		23,193,170		21,898,859
Provisions (Notes 23 and 44)		420,844		516,601
Net defined benefit liability (Note 24)		70,092		99,691
Current tax liabilities (Note 42)		47,743		108,943
Deferred tax liabilities (Note 42)		20,110		19,379
Derivative liabilities (Notes 4,11,12 and 26)		25,175		—
Other financial liabilities (Notes 4,11,12 and 25)		26,725,880		16,964,206
Other liabilities (Notes 25 and 45)		327,632		305,174
Total liabilities		292,242,107		272,549,157

(Continued)

WOORI BANK AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

AS OF SEPTEMBER 30, 2016 AND DECEMBER 31, 2015 (CONTINUED)

	September 30, 2016			December 31, 2015
	(Korean Won in millions)
EQUITY
Owners’ equity:		20,458,072			19,188,472
Capital stock (Note 28)		3,381,392			3,381,392
Hybrid securities (Note 29)		3,883,907			3,334,002
Capital surplus (Note 28)		294,260			294,259
Other equity (Note 30)		(1,615,701	)		(1,547,303	)
Retained earnings (Notes 31 and 32)
(Regulatory reserve for credit loss as of September 30, 2016 and December 31, 2015 is 2,255,252 million Won and 1,756,142 million Won, respectively)
(Regulatory reserve(reversal) for credit loss to be reserved as of September 30, 2016 and December 31, 2015 is (480) million Won and 499,110 million Won, respectively)
(Planned provision(reversal) of regulatory reserve for credit loss as of September 30, 2016 and December 31, 2015 is (480) million Won and 499,110 million Won, respectively)		14,514,214			13,726,122
Non-controlling interests		131,685			121,443
Total equity		20,589,757			19,309,915
Total liabilities and equity		312,831,864			291,859,072

See accompanying notes to consolidated financial statements.

WOORI BANK AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

FOR THE THREE MONTHS AND NINE MONTHS ENDED SEPTEMBER 30, 2016 AND 2015

	2016						2015
	Three months ended September 30			Nine months ended September 30			Three months ended September 30			Nine months ended September 30
	(Korean Won in millions, except per share data)
Interest income		2,108,925			6,402,487			2,157,772			6,540,249
Interest expense		852,483			2,657,287			957,584			3,022,569
Net interest income (Notes 34 and 45)		1,256,442			3,745,200			1,200,188			3,517,680
Fees and commissions income		482,002			1,388,832			444,513			1,299,745
Fees and commissions expense		240,495			679,319			197,820			554,594
Net fees and commissions income (Notes 35 and 45)		241,507			709,513			246,693			745,151
Dividend Income (Note 36)		16,881			137,280			28,161			90,973
Net gain (loss) on financial instruments at fair value through profit or loss (Note 37)		(102,362	)		(43,766	)		121,607			151,641
Net gain (loss) on available-for-sale financial assets (Note 38)		3,889			32,772			(19,891	)		(44,646	)
Impairment losses on credit loss (Notes 39 and 45)		(240,099	)		(670,843	)		(234,634	)		(925,691	)
General and administrative expenses (Note 40 and 45)		(767,230	)		(2,411,782	)		(749,943	)		(2,285,654	)
Other net operating income (expenses) (Notes 40 and 45)		31,090			(109,153	)		(196,100	)		(280,881	)
Operating income		440,118			1,389,221			396,081			968,573
Share of losses of joint ventures and associates (Note 13)		(6,375	)		(18,019	)		(6,084	)		(60,311	)
Other net non-operating income (loss)		14,532			(11,806	)		12,306			181,615
Non-operating income (loss) (Note 41)		8,157			(29,825	)		6,222			121,304
Net income before income tax expense		448,275			1,359,396			402,303			1,089,877
Income tax expense (Note 42)		88,883			242,217			77,228			235,983
Net income
(Net income after the provision of regulatory reserve for credit loss for the three months ended September 30, 2016 and 2015 are 372,698 million Won and 47,030 million Won, respectively , and net income after the provision of regulatory reserve for credit loss for the nine months ended September 30, 2016 and 2015 are 1,117,659 million Won and 451,087 million Won, respectively) (Note 32)		359,392			1,117,179			325,075			853,894
Remeasurement of the net defined benefit liability		(8,121	)		(52,788	)		(25,141	)		(52,029	)
Items that will not be reclassified to profit or loss		(8,121	)		(52,788	)		(25,141	)		(52,029	)
Gain (loss) on available-for-sale financial assets		(27,945	)		52,278			22,800			66,911
Share of other comprehensive gain (loss) of joint ventures and associates		(2,732	)		(2,965	)		3,660			5,325
Gain (loss) on foreign currency translation for foreign operations		(72,392	)		(75,041	)		39,554			41,293
Gain on valuation of cashflow hedge		—			10,371			—			—
Items that may be reclassified to net income		(103,069	)		(15,357	)		66,014			113,529
Other comprehensive income (loss), net of tax		(111,190	)		(68,145	)		40,873			61,500
Total comprehensive income		248,202			1,049,034			365,948			915,394
Net income attributable to:
Net income attributable to owners		355,649			1,105,915			323,293			840,150
Net income attributable to non-controlling interests		3,743			11,264			1,782			13,744
Total comprehensive income attributable to:
Comprehensive income attributable to owners		248,848			1,037,516			367,362			909,901
Comprehensive income (loss) attributable to non-controlling interests		(646	)		11,518			(1,414	)		5,493
Basic and diluted earnings per share (In Korean Won) (Note 43)		455			1,421			402			1,048

See accompanying notes to consolidated financial statements.

WOORI BANK AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2016 AND 2015

	Capital stock		Hybrid securities		Capital surplus		Other equity			Retained earnings			Controlling interests			Non-controlling interests			Total equity
	(Korean Won in millions)
January 1, 2015		3,381,392		2,538,823		291,066		(2,393,138	)		14,165,358			17,983,501			109,924			18,093,425
Net income		—		—		—		—			840,150			840,150			13,744			853,894
Dividends		—		—		—		—			(504,952	)		(504,952	)		(814	)		(505,766	)
Disposal of investments in consolidated subsidiaries		—		—		3,193		—			—			3,193			605			3,798
Gain (loss) on valuation of available-for-sale financial assets		—		—		—		68,216			—			68,216			(1,305	)		66,911
Changes in equity of joint ventures and associates		—		—		—		5,325			—			5,325			—			5,325
Gain (loss) on foreign currencies translation of foreign operations		—		—		—		48,236			—			48,236			(6,943	)		41,293
Remeasurement of the net defined benefit liability		—		—		—		(52,026	)		—			(52,026	)		(3	)		(52,029	)
Dividends on hybrid securities		—		—		—		—			(134,517	)		(134,517	)		—			(134,517	)
Issuance of hybrid securities		—		795,179		—		—			—			795,179			—			795,179
Appreciation of merger losses		—		—		—		806,640			(806,640	)		—			—			—
Other		—		—		—		—			—			—			55			55
September 30, 2015		3,3381,392		3,334,002		294,259		(1,516,747	)		13,559,399			19,052,305			115,263			19,167,568
January 1, 2016		3,381,392		3,334,002		294,259		(1,547,303	)		13,726,122			19,188,472			121,443			19,309,915
Net income		—		—		—		—			1,105,915			1,105,915			11,264			1,117,179
Dividends		—		—		—		—			(168,317	)		(168,317	)		(1,275	)		(169,592	)
Disposal of investments in consolidated subsidiaries		—		—		1		—			—			1			—			1
Gain on valuation of available-for-sale financial assets		—		—		—		51,654			—			51,654			624			52,278
Changes in equity of joint ventures and associates		—		—		—		(2,965	)		—			(2,965	)		—			(2,965	)
Loss on foreign currencies translation of foreign operations		—		—		—		(74,675	)		—			(74,675	)		(366	)		(75,041	)
Gain on valuation of cash flow hedge		—		—		—		10,371			—			10,371			—			10,371
Remeasurement of the net defined benefit liability		—		—		—		(52,783	)		—			(52,783	)		(5	)		(52,788	)
Dividends on hybrid securities		—		—		—		—			(149,506	)		(149,506	)		—			(149,506	)
Issuance of hybrid securities		—		549,905		—		—			—			549,905			—			549,905
September 30, 2016		3,381,392		3,883,907		294,260		(1,615,701	)		14,514,214			20,458,072			131,685			20,589,757

See accompanying notes to consolidated financial statements.

WOORI BANK AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2016 AND 2015

	For the nine months ended September 30
	2016			2015
	(Korean Won in millions)
Cash flows from operating activities:
Net income		1,117,179			853,894
Adjustments:
Income tax expense		242,217			235,983
Interest income		(6,402,487	)		(6,540,249	)
Interest expense		2,657,287			3,022,569
Dividend income		(137,280	)		(90,973	)
		(3,640,263	)		(3,372,670	)
Additions of expenses not involving cash outflows:
Impairment losses on credit loss		670,843			925,691
Loss on available-for-sale financial assets		—			44,646
Impairment loss on investments in subsidiaries and associates		29,280			97,267
Loss on transaction / valuation of derivative instruments (hedging)		31,778			16,004
Loss on hedged items (fair value hedge)		82,263			99,862
Provisions		22,695			71,218
Retirement benefits		114,277			99,056
Depreciation and amortization		191,127			181,487
Loss on disposal of investments in joint ventures and associates		15,060			10
Loss on disposal of premises and equipment and other assets		6,611			1,812
Impairment loss on premises and equipment and other assets		1,403			493
		1,165,337			1,537,546
Deduction of revenues not involving cash inflows:
Gain on valuation of financial instruments at fair value through profit or loss		182,767			7,903
Gain on available-for-sale financial assets		32,772			—
Gain on valuation of investments in subsidiaries and associates		11,261			36,956
Gain on transaction / valuation of derivative instruments (hedging)		77,723			108,091
Gain on hedged items (fair value hedge)		30,602			19,952
Reversal of provisions		864			465
Gain on disposal of investments in joint ventures and associates		1,250			60,896
Gain on disposal of premises and equipment and other assets		1,525			6,790
Reversal of impairment loss on premises and equipment and other assets		3,711			373
		342,475			241,426
Changes in operating assets and liabilities:
Financial instruments at fair value through profit or loss		(137,199	)		219,809
Loans and receivables		(17,776,026	)		(25,285,929	)
Other assets		(94,998	)		(71,850	)
Deposits due to customers		11,323,759			16,080,222
Provision		(58,034	)		(100,426	)
Net defined benefit liability		(249,297	)		(160,207	)
Other financial liabilities		9,621,522			6,444,098
Other liabilities		18,750			(71,092	)
		2,648,477			(2,945,375	)

(Continued)

WOORI BANK AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2016 AND 2015 (CONTINUED)

	For the nine months ended September 30
	2016			2015
	(Korean Won in millions)
Cash received from (paid for) operating activities:
Interest income received		6,409,990			6,572,793
Interest expense paid		(2,498,628	)		(3,272,847	)
Dividends received		136,163			88,720
Income tax paid		(211,346	)		(408,767	)
Net cash provided by (used in) operating activities		4,784,434			(1,188,132	)
Cash flows from investing activities:
Cash in-flows from investing activities:					—
Disposal of available-for-sale financial assets		14,997,100			13,581,997
Redemption of held-to-maturity financial assets		5,958,431			4,861,468
Disposal of investments in joint ventures and associates		57,035			59,678
Disposal of premises and equipment		250			17,933
Disposal of intangible assets		3,784			1,782
Disposal of assets held for sale		13,876			3,711
		21,030,476			18,526,569
Cash out-flows from investing activities:
Acquisition of Saudara Bank		—			38,535
Acquisition of available-for-sale financial assets		16,194,628			13,177,368
Acquisition of held-to-maturity financial assets		6,224,158			5,691,967
Acquisition of investments in joint ventures and associates		800			—
Acquisition of investment properties		3,133			—
Acquisition of premises and equipment		82,727			89,591
Acquisition of intangible assets		115,445			71,192
		22,620,891			19,068,653
Net cash used in investing activities		(1,590,415	)		(542,084	)
Cash flows from financing activities:
Cash in-flows from financing activities:
Increase in borrowings		5,698,152			11,777,239
Issuance of debentures		11,913,773			10,811,665
Issuance of hybrid securities		549,905			795,179
Change in ownership interest of subsidiaries		—			3,787
		18,161,830			23,387,870
Cash out-flows from financing activities:
Decrease in borrowings		8,512,585			8,137,078
Repayment of debentures		10,691,486			11,949,018
Payment of dividends		168,317			504,952
Dividends paid on hybrid securities		125,946			104,326
Dividends paid on non-controlling hybrid securities		1,275			—
		19,499,609			20,695,374
Net cash provided by (used in) financing activities		(1,337,779	)		2,692,496
Net increase in cash and cash equivalents		1,856,240			962,280
Cash and cash equivalents, beginning of the period		6,644,055			5,962,861
Effects of exchange rate changes on cash and cash equivalents		(218,785	)		282,498
Cash and cash equivalents, end of the period		8,281,510			7,207,639

See accompanying notes to consolidated financial statements

WOORI BANK AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

AS OF SEPTEMBER 30, 2016

AND FOR THE THREE MONTHS AND THE NINE MONTHS ENDED SEPTEMBER 30, 2016 AND 2015

1. GENERAL

(1) Summary of the parent company

Woori Bank (hereinafter referred as the “Bank”), which is a controlling entity in accordance with Korean International Financial Reporting Standards (“K-IFRS”) 1110 – Consolidated Financial Statements, was established in 1899 and is engaged in the commercial banking business under the Banking Law, trust business under the Financial Investment Services and Capital Market Act, and foreign currencies exchange business with approval from the Bank of Korea (“BOK”) and the Ministry of Finance and Economy (“MOFE”).

Previously, Woori Finance Holdings Co., Ltd., the former holding company of Woori Financial Group, established on March 27, 2001 held a 100% ownership of the Bank. Effective November 1, 2014, Woori Finance Holdings Co., Ltd. completed its merger with and into Woori Bank, its wholly-owned subsidiary, as contemplated by the merger agreement dated July 28, 2014, by and between Woori Finance Holdings Co., Ltd. and Woori Bank. Accordingly, the shares of the Bank, 597 million shares, prior to the merger, were reduced to nil in accordance with capital reduction procedure, and then, in accordance with the merger ratio, the Bank newly issued 676 million shares. As a result, as of September 30, 2016, the common stock of the Bank amounts, expressed in Korean Won (the “KRW” or “Won”), to 3,381,392 million Won.

As of September 30, 2016, Korea Deposit Insurance Corporation (“KDIC”), as the largest shareholder, held 345 million shares (51.06% ownership) of the Bank’s shares issued.

On June 24, 2002, Woori Finance Holdings Co., Ltd. listed its common shares on the Korea Exchange through public offering. In addition, on September 29, 2003, the holding company registered with the Securities and Exchange Commission in the United States of America and, on the same day, listed its American Depositary Shares on the New York Stock Exchange.

As a result of such merger, the Bank incorporated Woori Card Co., Ltd., Woori Investment Bank Co., Ltd., Woori FIS Co., Ltd., Woori Private Equity Asset Management Co., Ltd., and Woori Finance Research Institute Co., Ltd. as its subsidiaries.

The head office of the Bank is located in 51, Sogong-ro, Jung Gu, Seoul, Korea. The Bank has 905 branches and offices in Korea, and 22 branches and offices overseas as of September 30, 2016.

(2) The consolidated financial statements for Woori Bank and its subsidiaries (the “Group”) include the following subsidiaries:

			Percentage of ownership (%)				Location		Financial statements as of
Subsidiaries	Main business		September 30, 2016		December 31, 2015
Woori Bank:
Woori FIS Co., Ltd.		System software development & maintenance		100.0		100.0		Korea		September 30
Woori Private Equity Asset Management Co., Ltd.(*5)		Finance		100.0		100.0		Korea		September 30
Woori Finance Research Institute Co., Ltd.		Other service business		100.0		100.0		Korea		September 30
Woori Card Co., Ltd.		Finance		100.0		100.0		Korea		September 30
Woori Investment Bank Co., Ltd.		Other credit finance business		58.2		58.2		Korea		September 30
Woori Credit Information Co., Ltd.		Credit information		100.0		100.0		Korea		September 30
Woori America Bank		Finance		100.0		100.0		U.S.A		September 30
Woori Global Markets Asia Limited		”		100.0		100.0		Hong Kong		September 30
Woori Bank (China) Limited		”		100.0		100.0		China		September 30
ZAO Woori Bank		”		100.0		100.0		Russia		September 30
PT Bank Woori Saudara Indonesia 1906 Tbk		”		74.0		74.0		Indonesia		September 30
Woori Brazil Bank		”		100.0		100.0		Brazil		September 30
Korea BTL Infrastructure Fund		”		99.9		99.9		Korea		September 30
Woori Fund Service Co., Ltd.		”		100.0		100.0		Korea		September 30
Woori Finance Cambodia		”		100.0		100.0		Cambodia		September 30
Woori Finance Myanmar		”		100.0		100.0		Myanmar		September 30
Kumho Trust First Co., Ltd. (*1)		Asset securitization		0.0		0.0		Korea		September 30
Asiana Saigon Inc. (*1)		”		0.0		0.0		Korea		September 30
An-Dong Raja First Co., Ltd. (*1)		”		0.0		0.0		Korea		September 30
Consus Eighth Co., LLC (*1)		”		0.0		0.0		Korea		September 30
KAMCO Value Recreation First Securitization Specialty Co., Ltd. (*1)		”		15.0		15.0		Korea		September 30
Hermes STX Co., Ltd. (*1)		”		0.0		0.0		Korea		September 30
BWL First Co., LLC (*1)		”		0.0		0.0		Korea		September 30
Woori Poongsan Co., Ltd. (*1)		”		0.0		0.0		Korea		September 30
Deogi Dream Fourth Co., Ltd. (*1)		”		0.0		0.0		Korea		September 30
Jeonju Iwon Ltd. (*1)		”		0.0		0.0		Korea		September 30
Wonju I one Inc. (*1)		”		0.0		0.0		Korea		September 30
Heitz Third Co., Ltd. (*1)		”		0.0		0.0		Korea		September 30
Woorihansoop 1st Co., Ltd. (*1)		”		0.0		0.0		Korea		September 30
Electric Cable First Co., Ltd (*1)		”		0.0		0.0		Korea		September 30
Woori International First Co., Ltd. (*1)		”		0.0		0.0		Korea		September 30
Woori HJ First Co., Ltd. (*1)		”		0.0		0.0		Korea		September 30
Haeoreum Short-term Bond 15th and 34 beneficiary certificates for the rest (*2)		Securities investment and others		—		—		—		September 30
Principle Guaranteed Trust (*3)		Trust		0.0		0.0		Korea		September 30
Principle and Interest Guaranteed Trust (*3)		”		0.0		0.0		Korea		September 30
Woori Bank and Woori Private Equity Asset management Co., Ltd.										September 30
Woori Private Equity Fund (*4)		Other financial business		31.9		31.9		Korea		September 30
Woori Private Equity Fund:										September 30
Woori EL Co., Ltd.		Other financial business		100.0		100.0		Korea		September 30
Woori Investment Bank:										September 30
Dongwoo First Securitization Specialty Co., Ltd. (*1)		Asset securitization		5.0		5.0		Korea		September 30

- 2 -

(*1) The entity is a structured entity for the purpose of asset securitization and included in the consolidation scope. Though the Group is not a majority shareholder, the Group 1) has the power over the investee, 2) is exposed, or has rights, to variable returns from its involvement with the investee, and 3) has the ability to use its power to affect its returns.

(*2) The entity is a structured entity for the purpose of investment in securities and included in the consolidation scope, considering the Group 1) has the power over the investee, 2) is exposed, or has rights, to variable returns from its involvement with the investee, and 3) has the ability to use its power to affect its returns.

(*3) The entity is a money trust under the Financial Investment Services and Capital Markets Act and included in the consolidation scope. Though the Group is not a majority shareholder, the Group 1) has the power over the investee, 2) is exposed, or has rights, to variable returns from its involvement with the investee, and 3) has the ability to use its power to affect its returns.

(*4) The entity is included in the consolidation scope for the Group, as a general partner, has controlling power.

(*5) The entity registered as the professional private equity fund investor during the nine months ended September 30, 2016, and it changed its name into Woori Private Equity Asset Management Co.,Ltd.

(3) As of September 30, 2016, and December 31, 2015, despite having more than a 50% ownership interest, the Group has not consolidated the following companies as the Group does not have the ability to control following subsidiaries:

	As of September 30, 2016
Subsidiaries	Location	Main business	Percentage of ownership (%)
Golden Bridge NHN Online Private Equity Investment (*)	Korea	Securities Investment		60.0
Mirae Asset Maps Clean Water Private Equity Investment Trust 7th (*)	Korea	Securities Investment		59.7
Kiwoom Yonsei Private Equity Investment Trust (*)	Korea	Securities Investment		88.9

(*) The Group owns the majority ownership interest in these structured entities, but has no power on the investees’ relevant activities. As results, it is deemed that the Group has no power or control over the structured entities.

	As of December 31, 2015
Subsidiaries	Location	Main business	Percentage of ownership (%)
Golden Bridge NHN Online Private Equity Investment (*)	Korea	Securities Investment		60.0
Heungkuk High Class Private Equity Securities Investment Trust 377th (*)	Korea	Securities Investment		51.3
Mirae Asset Maps Clean Water Private Equity Investment Trust 7th (*)	Korea	Securities Investment		59.7
Kiwoom Yonsei Private Equity Investment Trust (*)	Korea	Securities Investment		88.9

(*) The Group owns the majority ownership interest in these structured entities, but has no power on the investees’ relevant activities. As results, it is deemed that the Group has no power or control over the structured entities.

(4) The summarized financial information before the elimination of intercompany transactions of the subsidiaries whose financial information were prepared under K-IFRS for the Group’s consolidated financial statements is as follows (Unit: Korean Won in millions):

	As of and for the nine months ended September 30, 2016
	Assets		Liabilities		Operating Revenue		Net income (loss) attributable to owners			Comprehensive income (loss) attributable to owners
Woori FIS		128,970		93,407		184,520		1,486			1,486
Woori Private Equity		80,893		37,883		800		(787	)		(865	)
Woori Finance Research Institute		3,953		513		3,560		178			163
Woori Card		7,323,502		5,917,524		1,142,325		92,391			97,144
Woori Investment Bank Co., Ltd.		1,620,779		1,456,551		126,962		15,962			16,065
Woori Credit Information		30,722		4,065		20,460		597			400
Woori America Bank		1,673,272		1,483,323		54,755		10,941			(1,939	)
Woori Global Markets Asia Limited		237,675		125,217		5,689		1,323			(6,387	)
Woori Bank (China) Limited		4,023,517		3,536,338		287,390		29,847			(18,521	)
ZAO Woori Bank		239,235		196,057		11,590		4,076			7,345
PT Bank Woori Saudara Indonesia 1906 Tbk		1,805,966		1,439,464		279,393		17,520			18,333
Woori Brazil Bank		86,995		55,684		12,669		2,194			5,725

- 3 -

	As of and for the nine months ended September 30, 2016
	Assets		Liabilities		Operating Revenue		Net income (loss) attributable to owners			Comprehensive income (loss) attributable to owners
Korea BTL Infrastructure Fund		780,970		295		25,075		22,296			22,296
Woori Fund Service		10,876		685		5,811		1,188			1,188
Woori Finance Cambodia		28,280		21,667		3,287		901			452
Woori Finance Myanmar		3,025		1,231		321		(303	)		(430	)
Money trust under the Trust Business Act		1,523,470		1,494,800		51,734		37			37
Structured entity for the securitization of financial assets		535,250		945,408		21,018		5,024			5,373
Security investments structured entity		4,004,084		1,493,995		101,968		49,746			73,437

	As of and for the year ended December 31, 2015
	Assets		Liabilities		Operating revenue		Net income (loss) attributable to owners			Comprehensive income (loss) attributable to owners
Woori FIS		161,778		127,701		260,657		1,421			(833	)
Woori Private Equity		89,365		45,491		3,669		1,224			1,024
Woori Finance Research Institute		3,605		328		4,149		86			62
Woori Card		6,604,059		5,295,225		1,379,873		116,858			119,976
Woori Investment Bank Co., Ltd.		1,206,156		1,057,992		129,404		10,435			7,830
Woori Credit Information		33,957		6,691		31,271		1,806			1,830
Woori America Bank		1,701,191		1,509,304		67,932		12,893			24,356
Woori Global Markets Asia Limited		245,246		126,401		6,851		1,763			8,958
Woori Bank (China) Limited		4,016,968		3,511,268		408,566		1,056			32,855
ZAO Woori Bank		261,026		225,194		17,301		7,232			(762	)
PT Bank Woori Saudara Indonesia 1906 Tbk		1,770,900		1,417,952		375,747		24,023			10,691
Woori Brazil Bank		106,239		80,653		19,850		2,330			(7,377	)
Korea BTL Infrastructure Fund		739,502		279		34,042		30,307			30,307
Woori Fund Service		9,818		815		6,247		358			358
Woori Finance Cambodia		22,767		16,607		2,705		579			946
Woori Finance Myanmar		2,252		29		9		(117	)		(166	)
Money trust under the Trust Business Act		1,477,657		1,449,024		56,397		125			125
Structured entity for the securitization of financial assets		545,534		961,065		22,728		(13,685	)		(6,662	)
Security investments structured entity		3,071,375		562,477		126,904		26,906			41,080

(5) The financial support that the Group provides to consolidated structured entities is as follows:

• Structured entity for securitization of financial assets

The structured entity is established for the purpose of securitization of project financing loans, corporate bonds, and other financial assets. The Group is involved with the structured entity through providing with credit facility over asset-backed commercial papers issued by the entity, originating loans directly to the structured entity, or purchasing 100% of the subordinated debts issued by the structured entity.

• Structured entity for investment in securities

The structured entity is established for the purpose of investments in securities. The Group acquires beneficiary certificates through its contribution of fund to the structured entity, and it is exposed to the risk that it may not be able to recover its fund depending on the result of investment performance of asset managers of the structured entity.

• Money trust under the Trust Business Act

The Group provides with financial guarantee of principal and interest or principal only to some of its trust products. Due to the financial guarantees, the Group may be obliged to supplement when the principal and interest or principal of the trust product sold is short of the guaranteed amount depending on the result of investment performance of the trust product.

- 4 -

(6) The details of the limitations with regard to the transfer of assets or the redemption of liabilities within the Group are provided below.

Some subsidiaries are regulated by the rules of certain jurisdictions, in which they were incorporated, with regard to funding or management of deposits. Also, there is the limitation that they must have pre-approval from their regulators in case of remittance of earnings to the Group.

(7) The Group has entered into various agreements with structured entities such as asset securitization vehicles, structured finance and investment funds, and monetary funds. Where it is determined in accordance with K-IFRS 1110 that the Group has no controlling power over such structured entities, the entities are not consolidated. The nature of interests, which the Group retains, and the risks, to which the Group is exposed, of the unconsolidated structured entities are as follows:    

The interests to unconsolidated structured entities, which the Group retains, are classified to asset securitization vehicles, structured finance and investment fund, based on the nature and the purpose of the structured entities.

Asset securitization vehicle issues asset-backed securities and redeems the principal and interest or distributes dividends on asset-backed securities with profits from collecting cash flows or sale of securitized assets. The Group, as a secondary guarantor, provides purchase commitments for its asset-backed securities or guarantees to such asset securitization vehicle and recognizes commission income or interest incomes related to the commitment or guarantees. As therefore, the Group would be exposed to risks to purchases or pays back asset-backed securities issued by the vehicles when a primary guarantor fails to provide the financing asset securitization vehicles.

Structured finance includes investments in project financing on real estates, social overhead capital (“SOC”), infrastructure and shipping finance. They are formed as special purpose entity by funding through equity investments and loans from various investors. Investment decisions are made by such investors including the Group based on business outlook of such projects. In relation to such investments, the Group recognizes interest incomes on loans, gains or losses on valuation of equity investments or dividend income. The structured finance is secured by additional funding agreement, guarantee or credit facilities. However, the structured financing project would fail to return the capital of equity investments or principal of loans to the Group if it is discontinued or did not achieve business outcome.

Investment funds include trusts and private equity funds. A trust is formed by contributions from various investors, operated by a manager engaged to the trust and distributed proceeds from sales of investments to the investors. A private equity fund is established in order to acquire ownership interests in a portfolio company with exit strategy after implementing financial and operational restructuring of the company. The Group recognizes unrealized gains or losses on change in value of investments in proposition of ownership interests in investments. The Group would be exposed to risks of loss when the value of portfolio investment is decreased.

- 5 -

Total assets of the unconsolidated structured entities, the carrying value of the related items recorded, the maximum exposure to risks, and the loss recognized in conjunction with the unconsolidated structured entities as of and for the nine months ended September 30, 2016 and for the year ended December 31, 2015 are as follows (Unit: Korean Won in millions):

	September 30, 2016
	Asset securitization vehicle		Structured finance		Investment funds
Total asset of the unconsolidated structured entities		8,023,249		51,167,447		9,026,223
Assets recognized in the consolidated financial statements related to the unconsolidated structured entities		3,469,330		2,564,930		1,036,045
Loans and receivables		70,451		2,149,082		—
Financial assets at fair value through profit or loss		—		275,635		—
Available-for-sale financial assets		1,239,229		131,685		947,756
Held-to-maturity financial assets		2,158,567		—		—
Investments in joint ventures and associates		—		—		88,289
Derivative assets		1,083		8,528		—
Liabilities recognized in the consolidated financial statements related to the unconsolidated structured entities		1,403		505		—
Other liabilities (including provisions)		1,403		505		—
The maximum exposure to risks		4,344,010		3,544,414		1,036,045
Investments		3,469,330		2,564,930		1,036,045
Purchase agreements		39,000		12,000		—
Credit facilities		835,680		967,484		—
Loss recognized on unconsolidated structured entities		1,219		66,679		491

	December 31, 2015
	Asset securitization vehicle		Structured finance		Investment funds
Total asset of the unconsolidated structured entities		10,138,371		48,198,653		7,611,232
Assets recognized in the consolidated financial statements related to the unconsolidated structured entities		4,219,809		2,879,310		963,747
Loans and receivables		148,811		2,439,207		26,976
Financial assets at fair value through profit or loss		—		274,175		—
Available-for-sale financial assets		1,649,949		133,455		654,705
Held-to-maturity financial assets		2,420,870		—		—
Investments in joint ventures and associates		—		—		282,066
Derivative assets		179		32,473		—
Liabilities recognized in the consolidated financial statements related to the unconsolidated structured entities		3,688		728		—
Derivative liabilities		126		—		—
Other liabilities (including provisions)		3,562		728		—
The maximum exposure to risks		5,250,850		3,877,161		963,747
Investments		4,219,809		2,879,310		963,747
Purchase agreements		74,000		48,000		—
Credit facilities		957,041		949,851		—
Loss recognized on unconsolidated structured entities		2,205		47,942		—

- 6 -

(8) Subsidiaries of which non-controlling interests are significant to the Group’s consolidated financial statements are as follows (Unit: Korean Won in millions):

1) Accumulated non-controlling interests at the end of the reporting period

	September 30, 2016		December 31, 2015
Woori Investment Bank		70,373		64,013
PT Bank Woori Saudara Indonesia 1906 Tbk		62,401		58,880

2) Net income attributable to non-controlling interests

	For the nine months ended September 30, 2016		For the nine months ended September 30, 2015
Woori Investment Bank		6,680		3,557
PT Bank Woori Saudara Indonesia 1906 Tbk		4,551		4,553

3) Dividends to non-controlling interests

	For the nine months ended September 30, 2016		For the nine months ended September 30, 2015
PT Bank Woori Saudara Indonesia 1906 Tbk		1,242		778

2. SIGNIFICANT BASIS OF PREPARATION AND ACCOUNTING POLICIES

The Group’s consolidated financial statements are prepared in accordance with Korean International Financial Reporting Standards (“K-IFRS”) 1034, Interim Financial Reporting. It is necessary to use the annual financial statements for the year ended December 31, 2015 for understanding of the accompanying consolidated financial statements.

Unless stated below, the accounting policies applied in preparing the accompanying interim consolidated financial statements have been applied consistently with the annual consolidated financial statements as of and for the year ended December 31, 2015.

(1) The Group has newly adopted the following amendment to K-IFRS that affected the Group’s accounting policies.

Amendments to K-IFRS 1001 – Presentation of Financial Statements

The amendments to K-IFRS 1001 clarify the concept of applying materiality in practice and restrict an entity reducing the understandability of its financial statements by obscuring material information with immaterial information or by aggregating material items that have different natures or functions. The application of these amendments has no significant impact on the disclosure in the Group’s consolidated financial statements.

Amendments to K-IFRS 1016 – Property, plant and Equipment

The amendments to K-IFRS 1016 prohibit the Group from using a revenue-based depreciation method for items of property, plant and equipment. The application of these amendments has no significant impact on the Group’s consolidated financial statements.

Amendments to K-IFRS 1038 – Intangible Assets

The amendments to K-IFRS 1038 rebuts presumption that revenue is not an appropriate basis for the amortization of an intangible assets, which the presumption can only be rebutted when the intangible asset expressed as a measure of revenue or when it can be demonstrated that revenue and consumption of the economic benefits of the intangible asset are highly correlated. The application of these amendments has no significant impact on the Group’s consolidated financial statements.

- 7 -

Amendments to K-IFRS 1110 – Consolidated Financial Statements & K-IFRS – 1112 Disclosure of interests in other entities & K-IFRS 1028 – Investment in associates

The amendments clarify that in applying the equity method of accounting to an associate or a joint venture that is an investment entity, an investor may retain the fair value measurements that the associate or joint venture used for its subsidiaries. The application of these amendments has no significant impact on the Group’s consolidated financial statements.

Amendments to K-IFRS 1111 – Accounting for Acquisitions of Interests in Joint Operations

The amendments to K-IFRS 1111 provides guidance on how to account for the acquisition of joint operation that constitutes a business as defined in K-IFRS 1103 Business Combinations. A joint operator is also required to disclose the relevant information required by K-IFRS 1103 and other standards for business combinations. The application of these amendments has no significant impact on the Group’s consolidated financial statements.

Other than the amendment stated above, there are several annual improvements in the current period, but the application of the amendments has had no material effect on the Group’s consolidated financial statements.

(2) The Group has not applied the following K-IFRSs that have been issued but are not yet effective:

Amendments to K-IFRS 1109 – Financial Instruments

The amendments to K-IFRS 1109 contain the requirements for the classification and measurement of financial assets and financial liabilities based on a business model whose objective is achieved both by collecting contractual cash flows and selling financial assets and based on the contractual terms that give rise on specified dates to cash flows, impairment methodology based on the expected credit losses, and broadened types of instruments that qualify as hedging instruments and the types of risk components of non-financial items that are eligible for hedge accounting and the change of the hedge effectiveness test. This standard will supersede K-IFRS 1039 – Financial instruments: Recognition and measurement, the amendments are effective for annual periods beginning on or after 1 January 2018.

Amendments to K-IFRS 1115 – Revenue from Contracts with Customers

The core principle under K-IFRS 1115 is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The amendments introduces a 5-step approach to revenue recognition and measurement: 1) Identify the contract with a customer, 2) Identify the performance obligations in the contract, 3) Determine the transaction price, 4) Allocate the transaction price to the performance obligations in the contract, 5) Recognize revenue when (or as) the entity satisfies a performance obligation. This standard will supersede K-IFRS 1011 - Construction Contracts, K-IFRS 1018- Revenue, K-IFRS 2113 - Customer Loyalty Programmes, K-IFRS 2115-Agreements for the Construction of Real Estate, K-IFRS 2118 - Transfers of Assets from Customers, and K-IFRS 2031-Revenue-Barter Transactions Involving Advertising Services. The amendments are effective for annual periods beginning on or after 1 January 2018.

The Group is in the process of evaluating the impact on the consolidated financial statements upon the adoption of amendments of K-IFRSs that have been issued but are not yet effective.

- 8 -

3. SIGNIFICANT ACCOUNTING ESTIMATES AND ASSUMPTIONS

In the application of the Group’s accounting policies to the interim financial statements, management is required to make judgments, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. Actual results can differ from those estimates based on assumptions.

The significant judgments which management has 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 consolidated financial statements for the year ended
December 31, 2015.

4. RISK MANAGEMENT

The Group’s operating activity is exposed to various financial risks. The Group is required to analyze and assess the level of complex risks, and 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 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 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 the avoidance of concentration on capital at risk and the establishment of acceptable level of risk.

(1) Credit risk

Credit risk represents the possibility of financial losses incurred when the counterparty fails to fulfill its contractual obligations. The goals of credit risk management are 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, 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. It monitors obligor’s credit line, total exposures and loan portfolios when approving the loan.

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 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.

- 9 -

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

	September 30, 2016		December 31, 2015
Loans and receivables:
Korean treasury and government agencies		15,529,679		12,062,603
Banks		25,078,165		19,048,126
Corporates		91,726,176		93,765,023
Consumers		128,854,213		119,966,310
Sub-total		261,188,233		244,842,062
Financial assets at fair value through profit or loss (“FVTPL”):
Gold banking assets		21,423		24,884
Debt securities held for trading		2,707,194		2,617,406
Financial assets designated at FVTPL		3,314		986
Derivative assets		2,920,568		2,390,497
Sub-total		5,652,499		5,033,773
Available-for-sale (“AFS”) debt securities		15,890,934		14,723,577
Held-to-maturity (“HTM”) securities		13,853,700		13,621,640
Derivative assets for hedging		273,499		183,128
Off-balance accounts :
Guarantees		13,918,471		17,315,443
Loan commitments		80,635,846		88,211,580
Sub-total		94,554,317		105,527,023
Total		391,413,182		383,931,203

a) Credit risk exposure by geographical areas

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

	September 30, 2016
	Korea		China		USA		UK		Japan		Others (*1)		Total
Loans and receivables		247,244,848		3,382,098		2,633,927		768,237		321,365		6,837,758		261,188,233
Financial assets at FVTPL (*2)		2,710,508		—		—		21,423		—		—		2,731,931
AFS debt securities		15,592,789		24,650		97,242		—		—		176,253		15,890,934
HTM securities		13,703,778		—		17,276		—		—		132,646		13,853,700
Off-balance accounts		92,741,456		586,927		80,002		76,526		26,273		1,043,133		94,554,317
Total		371,993,379		3,993,675		2,828,447		866,186		347,638		8,189,790		388,219,115

	December 31, 2015
	Korea		China		USA		UK		Japan		Others (*1)		Total
Loans and receivables		231,685,404		2,808,255		2,606,044		644,387		192,599		6,905,373		244,842,062
Financial assets at FVTPL (*2)		2,618,392		—		—		24,884		—		—		2,643,276
AFS debt securities		14,427,447		38,094		96,443		—		—		161,593		14,723,577
HTM securities		13,525,799		—		15,112		—		—		80,729		13,621,640
Off-balance accounts		103,454,192		607,685		88,552		107,239		28,884		1,240,471		105,527,023
Total		365,711,234		3,454,034		2,806,151		776,510		221,483		8,388,166		381,357,578

(*1) Others consist of financial assets in Indonesia, Vietnam, Panama and European countries, etc.

(*2) Financial assets at FVTPL comprise gold banking assets, debt securities held for trading and financial assets designated at FVTPL.

- 10 -

b) Credit risk exposure by industries

The following tables analyze credit risk exposure by industries, which are service, manufacturing, finance and insurance, construction, individuals, and others in accordance with the Korea Standard Industrial Classification Code (Unit: Korean Won in millions):

	September 30, 2016
	Service		Manufacturing		Finance and insurance		Construction		Individuals		Others		Total
Loans and receivables		46,823,759		36,542,856		41,875,377		4,573,987		121,463,508		9,908,746		261,188,233
Financial assets at FVTPL (*)		24,646		962		1,729,078		—		—		977,245		2,731,931
AFS debt securities		1,009,278		80,812		9,182,289		63,183		—		5,555,372		15,890,934
HTM securities		1,752,115		20,000		8,180,998		371,611		—		3,528,976		13,853,700
Off-balance accounts		17,188,713		25,300,542		10,017,231		4,097,426		33,492,166		4,458,239		94,554,317
Total		66,798,511		61,945,172		70,984,973		9,106,207		154,955,674		24,428,578		388,219,115

(*) Financial assets at FVTPL comprise gold banking assets, debt securities held for trading and financial assets designated at FVTPL

	December 31, 2015
	Service		Manufacturing		Finance and insurance		Construction		Individuals		Others		Total
Loans and receivables		48,470,594		37,699,589		32,604,765		5,160,497		112,491,741		8,414,876		244,842,062
Financial assets at FVTPL (*)		23,617		986		1,460,037		—		—		1,158,636		2,643,276
AFS debt securities		781,989		47,119		9,213,137		31,159		—		4,650,173		14,723,577
HTM securities		1,931,529		20,000		7,875,325		472,209		—		3,322,577		13,621,640
Off-balance accounts		18,572,657		31,975,235		13,871,934		5,307,240		30,606,423		5,193,534		105,527,023
Total		69,780,386		69,742,929		65,025,198		10,971,105		143,098,164		22,739,796		381,357,578

(*) Financial assets at FVTPL comprise gold banking assets, debt securities held for trading and financial assets designated at FVTPL.

- 11 -

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):

	September 30, 2016
					Corporates
	Korean treasury and government agencies		Banks		General business		Small & medium sized enterprise		Project financing		Sub-total		Consumers		Total
Loans and receivables neither overdue nor impaired		15,533,443		25,096,844		52,227,846		31,386,929		7,273,369		90,888,144		127,854,091		259,372,522
Loans and receivables overdue but not impaired		—		362		54,487		120,159		—		174,646		854,723		1,029,731
Impaired loans and receivables		—		3,426		1,586,019		480,375		328,575		2,394,969		526,792		2,925,187
Gross loans and receivables		15,533,443		25,100,632		53,868,352		31,987,463		7,601,944		93,457,759		129,235,606		263,327,440
Allowance for credit losses		3,764		22,467		1,157,669		481,967		91,947		1,731,583		381,393		2,139,207
Total, net		15,529,679		25,078,165		52,710,683		31,505,496		7,509,997		91,726,176		128,854,213		261,188,233
	December 31, 2015
					Corporates
	Korean treasury and government agencies		Banks		General business		Small & medium sized enterprise		Project financing		Sub-total		Consumers		Total
Loans and receivables neither overdue nor impaired		12,065,749		19,062,673		53,282,955		31,665,220		7,618,968		92,567,143		118,888,052		242,583,617
Loans and receivables overdue but not impaired		—		682		66,770		91,406		—		158,176		900,313		1,059,171
Impaired loans and receivables		—		2,331		2,005,366		506,793		585,684		3,097,843		577,157		3,677,331
Gross loans and receivables		12,065,749		19,065,686		55,355,091		32,263,419		8,204,652		95,823,162		120,365,522		247,320,119
Allowance for credit losses		3,146		17,560		1,393,401		516,891		147,847		2,058,139		399,212		2,478,057
Total, net		12,062,603		19,048,126		53,961,690		31,746,528		8,056,805		93,765,023		119,966,310		244,842,062

- 12 -

a) Credit quality of loans and receivables

The Group manages credit quality of its loans and receivables, (neither overdue nor impaired, net of allowance) through an internal rating system. Segregation of credit quality is as follows (Unit: Korean Won in millions):

	September 30, 2016
	Korean treasury and government agencies				Corporates
			Banks		General business		Small & medium sized enterprise		Project financing		Sub-total		Consumers		Total
Upper grade (*1)		15,529,679		25,077,758		43,151,138		17,957,818		5,539,267		66,648,223		123,970,911		231,226,571
Lower grade (*2)		—		—		8,638,233		13,186,117		1,713,691		23,538,041		3,736,683		27,274,724
Total		15,529,679		25,077,758		51,789,371		31,143,935		7,252,958		90,186,264		127,707,594		258,501,295
Value of collateral		—		382,341		18,322,711		25,220,143		4,156,520		47,699,374		106,269,957		154,351,672

	December 31, 2015
	Korean treasury and government agencies				Corporates
			Banks		General business		Small & medium sized enterprise		Project financing		Sub-total		Consumers		Total
Upper grade (*1)		12,062,603		19,044,317		41,511,690		16,597,807		5,275,015		63,384,512		114,559,012		209,050,444
Lower grade (*2)		—		1,044		11,434,413		14,817,366		2,271,579		28,523,358		4,187,183		32,711,585
Total		12,062,603		19,045,361		52,946,103		31,415,173		7,546,594		91,907,870		118,746,195		241,762,029
Value of collateral		11,391		413,893		18,096,065		24,412,038		4,220,936		46,729,039		98,376,621		145,530,944

(*1) AAA~BBB for Corporates and 1~6 level for Consumers

(*2) BBB- ~C for Corporates and 7~10 level for Consumers

Allowances for credit losses, for loans and receivables neither overdue nor impaired, amounting to 871,227 million Won and 821,588 million Won as of September 30, 2016 and as of December 31, 2015, respectively, which are deducted from the loans and receivables above.

b) Aging analysis of loans and receivables

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

	September 30, 2016
Overdue	Korean treasury and government agencies		Banks		Corporates								Consumers		Total
					General business		Small & medium sized enterprise		Project financing		Sub-total
Less than 30 days		—		—		47,239		85,515		—		132,754		653,007		785,761
30 to 60 days		—		94		4,089		14,641		—		18,730		101,182		120,006
60 to 90 days		—		34		2,360		7,712		—		10,072		52,126		62,232
Total		—		128		53,688		107,868		—		161,556		806,315		967,999
Value of collateral (*)		—		—		7,341		88,200		—		95,541		612,391		707,932
	December 31, 2015
Overdue	Korean treasury and government agencies		Banks		Corporates								Consumers		Total
					General business		Small & medium sized enterprise		Project financing		Sub-total
Less than 30 days		—		92		52,157		58,854		—		111,011		716,245		827,348
30 to 60 days		—		120		3,902		16,584		—		20,486		98,889		119,495
60 to 90 days		—		222		9,537		4,969		—		14,506		39,330		54,058
Total		—		434		65,596		80,407		—		146,003		854,464		1,000,901
Value of collateral (*)		—		—		4,340		63,749		—		68,089		644,073		712,162

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

- 13 -

Allowances for credit losses, for loans and receivables that are overdue but not impaired, amounting to 61,732 million Won and 58,270 million Won as of September 30, 2016 and December 31, 2015, respectively, which are deducted from the loans and receivables above.

c) Impaired loans and receivables

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

	September 30, 2016
	Korean treasury and government agencies		Banks		Corporates								Consumers		Total
					General business		Small and medium sized enterprise		Project financing		Sub-total
Impaired loans		—		279		867,624		253,693		257,039		1,378,356		340,304		1,718,939
Value of collateral (*)		—		—		731,389		276,934		101,662		1,109,985		253,541		1,363,526
	December 31, 2015
	Korean treasury and government agencies		Banks		Corporates								Consumers		Total
					General business		Small and medium sized enterprise		Project financing		Sub-total
Impaired loans		—		2,331		949,991		250,948		510,211		1,711,150		365,651		2,079,132
Value of collateral (*)		—		—		840,461		285,873		174,918		1,301,252		294,725		1,595,977

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

Allowances for credit losses, for impaired loans and receivables amounting to 1,206,248 million Won and 1,598,199 million Won as of September 30, 2016 and December 31, 2015, respectively, are deducted from the impaired loans and receivables above.

4) Credit quality of debt securities

The Group manages debt securities based on the external credit rating. Credit soundness of debt securities on the basis of External Credit Assessment Institution (“ECAI”)’s rating is as follows (Unit: Korean Won in millions):

	September 30, 2016
	Financial assets at FVTPL (*)		AFS debt securities		HTM securities		Total
AAA		1,663,203		12,203,460		13,336,253		27,202,916
AA- ~ AA+		696,475		3,038,369		413,365		4,148,209
BBB- ~ A+		347,516		583,223		104,082		1,034,821
Below BBB-		3,314		65,882		—		69,196
Total		2,710,508		15,890,934		13,853,700		32,455,142

	December 31, 2015
	Financial assets at FVTPL (*)		AFS debt securities		HTM securities		Total
AAA		1,670,647		11,802,897		13,158,286		26,631,830
AA- ~ AA+		651,103		2,238,670		380,541		3,270,314
BBB- ~ A+		295,656		656,238		82,813		1,034,707
Below BBB-		986		25,772		—		26,758
Total		2,618,392		14,723,577		13,621,640		30,963,609

(*) Financial assets at FVTPL comprise debt securities held for trading and financial assets designated at FVTPL.

- 14 -

(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.

On a yearly basis, the Risk Management Committee establishes a Value at Risk (“VaR”, maximum losses) limit, loss limit and risk capital limit by subsidiaries for its management purposes. The 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 the 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 VaR limit by department, risk factor and loss limit on a daily basis and reports regularly to the Risk Management Committee.

2) Sensitivity analysis of market risk

The Group performs the sensitivity analyses both for trading and for non-trading activities.

For trading activities, the Group uses a VaR model that uses certain assumptions of possible fluctuations in market condition and, by conducting simulations of gains and losses, under which the model estimates the maximum losses that may occur. A VaR model predicts based on statistics of possible losses on the portfolio at a certain period currently or in the future. It indicates the maximum expected loss with at least 99% credibility. In short, there exists a one percent possibility that the actual loss might exceed the predicted loss generated from the VaR calculation. The actual results are periodically monitored to examine the validity of the assumptions and variables and factors that are used in VaR 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 Bank, and the risks for all other subsidiaries are measured and managed by the interest rate EaR and the interest rate VaR calculations based on the Bank for International Settlements (“BIS”) Framework.

NII is a profit based indicator for displaying profit changes in the short term due to short term interest changes. 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 assets. EaR shows the maximum profit-loss amount, which indicates the maximum deduction amount caused by the unfavorable changes related to the interest rate of a certain period of time (i.e. 1 year). Interest rate VaR shows the potential maximum loss generated by the unfavorable changes during a certain period of time in the present or future.

- 15 -

a) Trading activities

The minimum, maximum and average Value at Risk(“VaR”) for the nine months ended September 30, 2016 and the year ended December 31, 2015, respectively, and the VaR as of September 30, 2016 and December 31, 2015, respectively, are as follows (Unit: Korean Won in millions):

	As of September 30, 2016			For the nine months ended September 30, 2016									As of December 31, 2015			For the year ended December 31, 2015
Risk factor				Average			Maximum			Minimum						Average			Maximum			Minimum
Interest rate		2,514			2,691			6,430			1,367			2,907			2,742			3,991			1,211
Stock price		3,611			3,361			5,028			2,304			3,186			2,411			4,377			531
Foreign currencies		5,159			5,097			7,686			3,967			3,997			3,415			4,847			2,329
Commodity price		52			118			258			21			117			102			218			5
Diversification		(4,456	)		(5,452	)		(10,283	)		(4,034	)		(5,017	)		(3,858	)		(6,910	)		(411	)
Total VaR		6,880			5,815			9,119			3,625			5,190			4,812			6,523			3,665

b) Non-trading activities

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

Name of scenario	September 30, 2016				December 31, 2015
	NII		NPV		NII		NPV
Base case		4,088,931		25,917,141		4,248,972		22,441,148
Base case (Prepay)		4,112,959		23,852,686		4,243,033		21,418,343
IR 100bp up		4,414,743		25,080,746		4,628,056		21,747,451
IR 100bp down		3,730,348		26,827,436		3,863,665		23,192,051
IR 200bp up		4,740,412		24,313,993		5,007,090		21,107,510
IR 200bp down		2,890,024		27,820,591		3,137,452		23,998,930
IR 300bp up		5,066,081		23,612,039		5,386,122		20,517,630
IR 300bp down		1,973,877		30,184,616		2,123,516		25,345,104

The interest EaR and VaR are calculated based on the BIS Framework of other subsidiaries other than the Bank are as follows (Unit: Korean Won in millions):

September 30, 2016				December 31, 2015
EaR		VaR		EaR		VaR
	169,846		44,185		153,717		80,086

- 16 -

The Group estimates and manages risks related to changes in interest rate due to the difference in the maturities of interest-bearing assets and liabilities and discrepancies in the terms of interest rates. Cash flows of principal amounts and interests from interest bearing assets and liabilities by re-pricing date are as follows (Unit: Korean Won in millions):

	September 30, 2016
	Within 3 months		4 to 6 Months		7 to 9 months		10 to12 months		1 to 5 Years		5 years ~		Total
Asset:
Loans and receivables		145,498,418		40,400,483		9,303,374		7,981,412		54,410,333		34,097,458		291,691,478
AFS financial assets		2,821,156		2,448,156		2,648,978		2,357,479		5,640,005		711,778		16,627,552
HTM financial assets		2,817,570		1,904,922		1,188,866		1,169,485		6,525,800		902,860		14,509,503
Total		151,137,144		44,753,561		13,141,218		11,508,376		66,576,138		35,712,096		322,828,533
Liability:
Deposits due to customers		103,516,461		37,055,965		28,752,858		16,965,548		34,409,124		34,727		220,734,683
Borrowings		11,503,118		1,586,948		531,388		460,273		2,875,692		405,651		17,363,070
Debentures		2,102,750		1,879,007		2,068,665		857,191		13,968,720		4,114,764		24,991,097
Total		117,122,329		40,521,920		31,352,911		18,283,012		51,253,536		4,555,142		263,088,850

	December 31, 2015
	Within 3 months		4 to 6 Months		7 to 9 months		10 to 12 months		1 to 5 years		5 years ~		Total
Asset:
Loans and receivables		140,191,350		41,178,643		8,201,386		8,043,459		50,083,399		30,613,803		278,312,040
AFS financial assets		1,346,353		2,176,565		2,821,168		2,031,687		6,480,914		702,884		15,559,571
HTM financial assets		1,980,893		1,652,225		1,191,175		1,611,999		6,957,745		922,081		14,316,118
Total		143,518,596		45,007,433		12,213,729		11,687,145		63,522,058		32,238,768		308,187,729
Liability:
Deposits due to customers		96,907,809		31,975,594		21,386,037		28,539,885		30,592,054		26,732		209,428,111
Borrowings		13,631,363		1,601,846		900,149		498,146		3,088,516		499,110		20,219,130
Debentures		3,056,172		1,142,939		747,728		2,028,080		12,197,477		4,584,085		23,756,481
Total		113,595,344		34,720,379		23,033,914		31,066,111		45,878,047		5,109,927		253,403,722

- 17 -

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):

	September 30, 2016
	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		23,649		25,928,999		129,737		1,405,934		22,131		3,628,739		1,794		2,206,919		3,701,756		36,872,347
Financial assets at FVTPL		121		132,194		78		850		—		—		16		19,533		46,716		199,293
AFS financial assets		814		892,803		—		—		150		24,650		—		597		104,898		1,022,948
HTM financial assets		16		17,441		—		—		—		—		—		—		132,482		149,923
Total		24,600		26,971,437		129,815		1,406,784		22,281		3,653,389		1,810		2,227,049		3,985,852		38,244,511

	September 30, 2016
	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
Liability:
Financial liabilities at FVTPL		134		146,906		328		3,556		—		—		75		92,481		89,524		332,467
Deposits due to customer		12,615		13,832,916		136,452		1,478,705		18,895		3,098,280		602		741,126		1,779,373		20,930,400
Borrowings		6,850		7,510,205		4,943		53,567		363		59,497		223		274,327		263,609		8,161,205
Debentures		3,028		3,319,675		—		—		900		147,573		—		—		270,269		3,737,517
Other financial liabilities		3,745		4,106,171		18,387		199,256		1,980		324,727		256		315,171		983,015		5,928,340
Total		26,372		28,915,873		160,110		1,735,084		22,138		3,630,077		1,156		1,423,105		3,385,790		39,089,929
Off-balance accounts		8,615		9,444,702		28,931		313,528		992		162,600		419		515,890		264,698		10,701,418

	December 31, 2015
	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		25,178		29,509,364		112,138		1,089,991		16,177		2,887,324		1,141		1,460,773		3,163,999		38,111,451
Financial assets at FVTPL		143		167,270		113		1,096		—		—		1		987		428		169,781
AFS financial assets		483		565,872		—		—		211		37,671		—		622		80,273		684,438
HTM financial assets		13		15,288		—		—		—		—		—		—		80,553		95,841
Total		25,817		30,257,794		112,251		1,091,087		16,388		2,924,995		1,142		1,462,382		3,325,253		39,061,511

	December 31, 2015
	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
Liability:
Financial liabilities at FVTPL		149		174,554		499		4,853		—		—		33		42,299		98,312		320,018
Deposits due to customer		11,701		13,713,829		114,940		1,117,225		15,174		2,708,309		301		385,077		1,204,774		19,129,214
Borrowings		8,757		10,262,750		17,834		173,350		276		49,231		441		565,235		111,447		11,162,013
Debentures		3,054		3,578,711		5,680		55,209		900		160,632		33		42,257		503,066		4,339,875
Other financial liabilities		2,150		2,519,715		3,176		30,867		2,850		508,596		69		88,658		706,388		3,854,224
Total		25,811		30,249,559		142,129		1,381,504		19,200		3,426,768		877		1,123,526		2,623,987		38,805,344
Off-balance accounts		9,914		11,619,118		26,451		257,103		797		142,208		528		676,588		504,092		13,199,109

- 18 -

(3) Liquidity risk

Liquidity risk refers to the risk that the Group may encounter difficulties in meeting obligations due to its financial liabilities.

1) Liquidity risk management

Liquidity risk management is to prevent potential cash shortages as a result of mismatching the use of funds (assets) and sources of funds (liabilities) or unexpected cash outflows. The financial liabilities that are relevant to liquidity risk are incorporated within the scope of risk management. Derivatives instruments 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 maturity gap, and then gap ratio through performing 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) Cash flows of principals and interests by remaining contractual maturities of non-derivative financial liabilities are as follows (Unit: Korean Won in millions):

	September 30, 2016
	Within 3 months		4 to 6 months		7 to 9 months		10 to 12 months		1 to 5 years		5 years~		Total
Financial liabilities at FVTPL		655,830		1,309		1,698		140		168,492		—		827,469
Deposits due to customers		137,700,931		30,219,751		23,918,315		22,081,143		7,435,218		2,729,894		224,085,252
Borrowings		7,651,356		2,307,232		1,565,858		823,172		4,673,218		404,590		17,425,426
Debentures		2,102,604		1,878,696		2,068,906		857,877		13,994,221		4,089,056		24,991,360
Other financial liabilities		17,141,977		18,399		2,280		2,892		95,195		2,721,921		19,982,664
Total		165,252,698		34,425,387		27,557,057		23,765,224		26,366,344		9,945,461		287,312,171
	December 31, 2015
	Within 3 months		4 to 6 months		7 to 9 months		10 to 12 months		1 to 5 years		5 years~		Total
Financial liabilities at FVTPL		730,495		408		54		11,850		161,537		—		904,344
Deposits due to customers		123,618,943		25,623,490		17,391,363		35,942,949		7,623,477		2,716,859		212,917,081
Borrowings		8,678,642		2,504,599		2,126,241		1,155,179		5,311,041		499,722		20,275,424
Debentures		3,055,973		1,143,005		747,870		2,027,915		12,197,268		4,584,002		23,756,033
Other financial liabilities		8,448,045		25,530		4,504		2,429		84,660		2,589,577		11,154,745
Total		144,532,098		29,297,032		20,270,032		39,140,322		25,377,983		10,390,160		269,007,627

- 19 -

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

	September 30, 2016
	Within 3 months		4 to 6 Months		7 to 9 Months		10 to 12 months		1 to 5 years		5 years~		Total
Financial liabilities at FVTPL		655,830		1,309		1,698		140		168,492		—		827,469
Deposits due to customers		148,161,559		31,642,122		20,658,006		14,668,184		6,221,359		2,351,735		223,702,965
Borrowings		7,651,385		2,307,219		1,565,845		823,169		4,673,218		404,590		17,425,426
Debentures		2,102,604		1,878,696		2,068,906		857,877		13,994,221		4,089,056		24,991,360
Other financial liabilities		17,141,977		18,399		2,280		2,892		95,195		2,721,921		19,982,664
Total		175,713,355		35,847,745		24,296,735		16,352,262		25,152,485		9,567,302		286,929,884
	December 31, 2015
	Within 3 months		4 to 6 months		7 to 9 months		10 to 12 months		1 to 5 years		5 years~		Total
Financial liabilities at FVTPL		730,495		408		54		11,850		161,537		—		904,344
Deposits due to customers		129,716,295		27,884,256		16,876,865		28,164,198		6,506,300		3,384,994		212,532,908
Borrowings		8,678,664		2,504,588		2,126,234		1,155,176		5,311,041		499,722		20,275,425
Debentures		3,055,973		1,143,005		747,870		2,027,915		12,197,268		4,584,002		23,756,033
Other financial liabilities		8,454,338		25,530		4,504		2,429		84,660		2,589,577		11,161,038
Total		150,635,765		31,557,787		19,755,527		31,361,568		24,260,806		11,058,295		268,629,748

3) Maturity analysis of derivative financial liabilities

Derivatives held for trading purpose are not managed in accordance with their contractual maturity, but the Group holds such financial instruments with the purpose of disposing or redemption before their maturity. As such, those derivatives are incorporated as “Within 3months” in the table below. The cash flow from derivatives held for hedge purpose is estimated at the amount after the offset of the cash inflow and outflow.

The cash flow by the maturity of derivative financial liabilities as of September 30, 2016 and December 31, 2015 are as follow (Unit: Korean Won in millions):

	Within 3 months		4 to 6 months		7 to 9 months		10 to 12 months		1 to 5 years		5 years~		Total
September 30, 2016		2,984,235		—		—		—		—		—		2,984,235
December 31, 2015		2,580,827		—		—		—		—		—		2,580,827

4) Maturity analysis of off-balance accounts such as guarantees and commitments

The Group provides guarantees on behalf of customers. A financial guarantee represents an irrevocable undertaking that the Group should 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 conduits and utilized overdraft facilities. The maximum limit to be paid by the Group in accordance with guarantees and loan commitment only applies to principal amounts. There are contractual maturities for financial guarantees, such as guarantees for debentures issued or loans, loan commitments, and other guarantees, however, under the terms of the guarantees and loan commitments, funds should be paid upon demand from the counterparty. Details of off-balance accounts are as follows (Unit: Korea Won in millions):

	September 30, 2016		December 31, 2015
Guarantees		13,918,471		17,315,443
Loan commitments		80,635,846		88,211,580

- 20 -

(4) Operational risk

The Group defines the operational risk that could cause a negative effect on capital resulting from inadequate internal process, labor work and systematic problem or external factors.

1) Operational risk management

The Group maintains the operational risk management system under Basel II. The Group developed advanced measurement approach to quantify required capital for operational risk. This system is used for reinforcement in market competitions, reducing the amount of risk capitals, managing the risk, and precaution for any unexpected occasions. This system was tested by the independent third party, and approved by the Financial Supervisory Service.

2) Operational risk measurement

To quantify required capital for operational risk, the Group applies advanced measurement approaches (AMA) using of internal loss data, business environment and internal control factors (BEICFs), and scenario analysis (SBA). For the operational risk management for its subsidiaries, the Group adopted the Basic Indicator Approach.

(5) Capital management

The Group complies with the capital adequacy standard established by the Financial Services Commission. The capital adequacy standard is based on Basel III published by Basel Committee on Banking Supervision in Bank of International Settlements in 2010, and was implemented in Korea in December 2013. The capital adequacy ratio is calculated by dividing its own capital by asset (weighted with a risk premium – “risk weighted assets”) based on the separate financial statements of the Group.

According to the above regulations, the Group is required to meet the following new minimum requirements: 5.375% and 4.5% common equity Tier 1 ratio, 6.875% and 6% Tier 1 capital ratio, and 8.875% and 8% total capital ratio as of September 30, 2016 and December 31, 2015, respectively. The details are as following (Unit: Korean won in millions):

	September 30, 2016			December 31, 2015
Common Tier 1 capital		13,930,670			13,047,567
Other Tier 1 capital		3,265,798			3,016,309
Tier 2 capital		4,762,506			4,987,529
Total risk-adjusted capital		21,958,974			21,051,405
Risk-weighted assets for credit risk		142,093,959			142,127,112
Risk-weighted assets for market risk		2,039,296			2,595,566
Risk-weighted assets for operational risk		9,349,973			9,348,221
Total risk-weighted assets		153,483,228			154,070,899
Common equity Tier 1 ratio		9.08	%		8.47	%
Tier 1 capital ratio		11.20	%		10.43	%
Total capital ratio		14.31	%		13.66	%

Provided the subsidiaries included in the scope of consolidation due to the merger with Woori Finance Holdings (i.e., Woori Card Co., Ltd., Woori Investment Bank Co., Ltd., Woori FIS Co., Ltd., Woori Private Equity Asset management Co., Ltd., and Woori Finance Research Institute Co., Ltd.) are ruled out, Common Equity Tier 1 ratio, Tier 1 capital ratio and Total capital ratio as of September 30, 2016 are adjusted to 10.25%, 12.65% and 15.99%, respectively.

- 21 -

5. OPERATING SEGMENTS

In evaluating the results of the Group and allocating resources, the Group’s Chief Operation Decision Maker (the “CODM”) utilizes the information per types of customers. This financial information of the segments is regularly reviewed by the CODM to make decisions about resources to be allocated to each segment and evaluate its performance.

(1) Segment by types of customers

The Group’s reporting segments comprise the following customers: consumer banking, corporate banking, investment banking, capital market, credit card, headquarters and others. The reportable segments are classified based on the target customers for whom the service is being provided.

	Details of products and services
Consumer banking	Loans/deposits and financial services for consumer, etc.
Corporate banking	Loans/deposits and export/import, financial services for corporations, etc.
Investment banking	Domestic/foreign investment, structured finance, M&A, equity & fund investment related business, venture advisory related tasks, real estate SOC development practices, etc.
Capital market	Fund management, investment securities and derivatives business, etc.
Credit card	Credit card, cash service and card loan, etc.
Headquarter and others	Segments that do not belong to the above segments

1) Details of assets and liabilities by each segment are as follows (Unit: Korean Won in millions):

	September 30, 2016
	Consumer banking		Corporate banking		Investment banking		Capital Market		Credit Card		Headquarter and Others		Sub-total		Inter-segment transaction			Total
Assets		103,032,126		105,139,039		6,159,000		11,852,713		7,323,502		83,622,227		317,128,607		(4,296,743	)		312,831,864
Liabilities		52,146,293		174,615,508		54,821		11,088,236		5,917,524		47,789,422		291,611,804		630,303			292,242,107

	December 31, 2015
	Consumer banking		Corporate banking		Investment banking		Capital Market		Credit Card		Headquarter and Others		Sub-total		Inter-segment transaction			Total
Assets		95,612,964		107,313,193		6,646,754		7,903,460		6,604,059		73,713,629		297,794,059		(5,934,987	)		291,859,072
Liabilities		46,049,309		170,127,944		41,772		6,410,552		5,295,225		42,578,200		270,503,002		2,046,155			272,549,157

2) Details of operating income by each segment are as follows (Unit: Korean Won in millions):

	For the nine months ended September 30, 2016
	Consumer banking			Corporate banking			Investment banking			Capital market			Credit Cards			Headquarters and others			Sub-total			Inter- segment transaction			Total
Net Interest income		1,088,799			1,298,660			9,738			39,087			315,967			553,785			3,306,036			439,164			3,745,200
Interest income		2,228,511			2,293,660			114,282			14,666			411,611			1,125,147			6,187,877			214,610			6,402,487
Interest expense		(772,242	)		(1,349,208	)		(156	)		(227	)		(95,644	)		(664,364	)		(2,881,841	)		224,554			(2,657,287	)
Inter-segment		(367,470	)		354,208			(104,388	)		24,648			—			93,002			—			—			—
Net non-interest income		420,841			414,071			118,636			11,701			62,198			232,636			1,260,083			(711,736	)		548,347
Non-interest income		682,013			399,706			421,359			6,935,357			723,278			3,150,096			12,311,809			(298,094	)		12,013,715
Non-interest expense		(286,919	)		(20,284	)		(302,723	)		(6,923,656	)		(661,080	)		(2,857,064	)		(11,051,726	)		(413,642	)		(11,465,368	)
Inter-segment		25,747			34,649			—			—			—			(60,396	)		—			—			—
Other expense		(1,365,472	)		(1,157,200	)		(88,720	)		(2,237	)		(254,812	)		(237,252	)		(3,105,693	)		201,367			(2,904,326	)
Administrative expense		(1,310,730	)		(700,793	)		(9,490	)		(12,104	)		(104,516	)		(463,717	)		(2,601,350	)		189,568			(2,411,782	)
Impairment losses due to credit loss and others		(54,742	)		(456,407	)		(79,230	)		9,867			(150,296	)		226,465			(504,343	)		11,799			(492,544	)
Operating income		144,168			555,531			39,654			48,551			123,353			549,169			1,460,426			(71,205	)		1,389,221
Non-operating income(loss)		(30,998	)		(2,754	)		32,618			—			(2,794	)		41,228			37,300			(67,126	)		(29,825	)
Net income before income tax expense		113,170			552,777			72,272			48,551			120,559			590,397			1,497,726			(138,330	)		1,359,396
Income tax expense		(27,387	)		(132,580	)		(17,490	)		(11,749	)		(28,168	)		(30,482	)		(247,856	)		5,639			(242,217	)
Net income		85,783			420,197			54,782			36,802			92,391			559,915			1,249,870			(132,691	)		1,117,179

- 22 -

	For the nine months ended September 30, 2015
	Consumer banking			Corporate banking			Investment banking			Capital market			Credit Cards			Headquarters and others			Sub-total			Adjustments			Total
Net interest income		936,563			1,248,892			3,778			27,953			275,265			576,029			3,068,480			449,200			3,517,680
Interest income		2,132,389			2,462,859			116,285			15,008			365,643			1,202,026			6,294,210			246,039			6,540,249
Interest expense		(953,431	)		(1,419,470	)		(14	)		(55	)		(90,378	)		(762,382	)		(3,225,730	)		203,161			(3,022,569	)
Inter-segment		(242,395	)		205,503			(112,493	)		13,000			—			136,385			—			—			—
Net non-interest income		416,322			388,722			67,826			18,663			78,049			320,110			1,289,692			(738,060	)		551,632
Non-interest income		647,399			375,641			357,082			5,321,751			630,983			2,440,752			9,773,608			(396,257	)		9,377,351
Non-interest expense		(246,709	)		(13,804	)		(289,256	)		(5,303,088	)		(552,934	)		(2,078,125	)		(8,483,916	)		(341,803	)		(8,825,719	)
Inter-segment		15,632			26,885			—			—			—			(42,517	)		—			—			—
Other income (expense)		(1,318,524	)		(1,348,068	)		12,436			(78,923	)		(223,451	)		(458,920	)		(3,415,450	)		314,711			(3,100,739	)
General administrative expense		(1,291,721	)		(661,634	)		(9,490	)		(11,572	)		(86,923	)		(424,780	)		(2,486,120	)		200,466			(2,285,654	)
Reversal of impairment losses(impairment losses) due to credit loss and others		(26,803	)		(686,434	)		21,926			(67,351	)		(136,528	)		(34,140	)		(929,330	)		114,245			(815,085	)
Operating income(loss)		34,361			289,546			84,040			(32,307	)		129,863			437,219			942,722			25,851			968,573
Non-operating income (expense)		(13,398	)		(3,061	)		33,771			140			—			137,560			155,012			(33,708	)		121,304
Net income(loss) before income tax expense		20,963			286,485			117,811			(32,167	)		129,863			574,779			1,097,734			(7,857	)		1,089,877
Income tax expense(benefit)		(5,073	)		(69,330	)		(28,510	)		7,785			(26,455	)		(144,068	)		(265,651	)		29,668			(235,983	)
Net income(loss)		15,890			217,155			89,301			(24,382	)		103,408			430,711			832,083			21,811			853,894

(2) Information on products and services

The 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.

- 23 -

(3) Information on geographical areas

Of the Group’s revenue (interest income and non-interest income) from services, revenue from the domestic customers for the nine months ended September 30, 2016 and 2015 amounted to 17,600,787 million Won and 14,905,211 million Won, respectively, and revenue from the foreign customers amounted to 815,415 million Won and 1,012,389 million Won, respectively. Of the Group’s non-current assets (investments in joint ventures and associates, investment properties, premises and equipment and intangible assets), non-current assets located in Korea as of September 30, 2016 and December 31, 2015 are 3,421,065 million Won and 3,666,276 million Won, respectively, and in foreign countries are 222,999 million Won and 220,093 million Won, respectively.

6. CASH AND CASH EQUIVALENTS

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

	September 30, 2016		December 31, 2015
Cash and checks		4,296,945		2,091,064
Foreign currencies		751,796		656,183
Demand deposits		2,756,344		3,286,747
Fixed deposits		476,425		610,061
Total		8,281,510		6,644,055

(2) Significant transactions not involving cash inflows and outflows are as follows (Unit: Korean Won in millions):

	For the nine months ended September 30, 2016			For the nine months ended September 30, 2015
Changes in other comprehensive income due to valuation of AFS financial assets		52,278			66,911
Changes in other comprehensive income (loss) of investment in associates		(2,965	)		5,325
Changes in other comprehensive income (loss) of foreign currencies translation of foreign operations		(75,041	)		41,293
Changes in other comprehensive income related to valuation of cash flow hedging		10,371			—
Changes in other comprehensive loss due to remeasurement of the net defined benefit liability		(52,788	)		(52,029	)
Changes in investments in associates due to equity swap and others		—			74,481
Changes in investments in associates due to accounts transfer		(156,727	)		—
Changes in unpaid dividends on hybrid equity securities		23,560			30,190
Changes in payables due to intangible assets		—			125,496

- 24 -

7. FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS

(1) Financial assets at FVTPL consist of as follows (Unit: Korean Won in millions):

	September 30, 2016		December 31, 2015
Financial assets held for trading		5,702,350		5,120,062
Financial assets designated at FVTPL		15,459		12,595
Total		5,717,809		5,132,657

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

	September 30, 2016		December 31, 2015
Deposits:
Gold banking assets		21,423		24,884
Securities:
Debt securities
Korean treasury and government agencies		523,522		798,397
Financial institutions		1,442,051		1,175,303
Corporates		741,621		643,706
Equity securities		36,924		62,945
Beneficiary certificates		9,433		14,017
Securities loaned		6,808		10,313
Sub-total		2,760,359		2,704,681
Derivatives assets		2,920,568		2,390,497
Total		5,702,350		5,120,062

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

	September 30, 2016		December 31, 2015
Debt securities		3,314		986
Equity securities		12,145		11,609
Total		15,459		12,595

- 25 -

8. AVAILABLE FOR SALE FINANCIAL ASSETS

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

	September 30, 2016		December 31, 2015
Debt securities:
Korean treasury and government agencies		3,870,812		3,558,789
Financial institutions		6,103,890		5,625,825
Corporates		4,038,338		3,887,981
Asset-backed securities		251,768		258,657
Bond denominated in foreign currencies		992,770		637,920
Sub-total		15,257,578		13,969,172
Equity securities		1,504,983		1,337,707
Beneficiary certificates		2,116,829		1,118,028
Securities loaned		560,814		720,010
Others		55,148		25,675
Total		19,495,352		17,170,592

9. HELD TO MATURITY FINANCIAL ASSETS

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

	September 30, 2016		December 31, 2015
Korean treasury and government agencies		3,582,300		3,366,942
Financial institutions		4,909,447		4,138,250
Corporates		5,212,030		6,020,607
Bond denominated in foreign currencies		149,923		95,841
Total		13,853,700		13,621,640

10. LOANS AND RECEIVABLES

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

	September 30, 2016		December 31, 2015
Due from banks		14,485,948		11,174,806
Loans		234,423,819		225,547,768
Other receivables		12,278,466		8,119,488
Total		261,188,233		244,842,062

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

	September 30, 2016			December 31, 2015
Due from banks in local currency:
Due from the Bank of Korea (“BOK”)		11,208,754			6,885,516
Due from depository banks		—			300,500
Due from non-monetary financial institutions		21,039			12,197
Due from the Korea Exchange		1,846			1,868
Others		47,254			34,525
Allowance for credit losses		(2,795	)		(2,063	)
Sub-total		11,276,098			7,232,543
Due from banks in foreign currencies:
Due from banks on demand		1,052,396			1,945,918
Time deposits		1,384,481			1,178,081
Others		777,406			822,888
Allowance for credit losses		(4,433	)		(4,624	)
Sub-total		3,209,850			3,942,263
Total		14,485,948			11,174,806

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(3) Details of restricted due from banks are as follows (Unit: Korean Won in millions):

Financial institution	Counterparty	September 30, 2016		Reason of restriction
Due from banks in local currency:
Due from the Bank of Korea	The BOK		11,208,754	Reserve deposits under The BOK Act
Others	Shinhan Investment Corp. and others		46,942	Treasury stock trust contracts and others
			11,255,696
Due from banks in foreign currencies:
Due from banks on demand	The BOK and others		1,050,678	Reserve deposits under The BOK Act and others
Others	Central Bank of China and others		618,842	Deposit reserves and others
			1,669,520
			12,925,216

Financial institution	Counterparty	December 31, 2015		Reason of restriction
Due from banks in local currency:
Due from the Bank of Korea	The BOK		6,885,516	Reserve deposits under The BOK Act
Others	Samsung Securities Co., Ltd. and others		34,525	Reserve deposits of the futures and options and others
			6,920,041
Due from banks in foreign currencies:
Due from banks on demand	The BOK and others		1,944,976	Reserve deposits under The BOK Act and others
Others	The Central Bank of China and others		811,168	Reserve deposits and others
			2,756,144
			9,676,185

(4) Details of loans are as follows (Unit: Korean Won in millions):

	September 30, 2016			December 31, 2015
Loans in local currency		190,962,372			185,154,851
Loans in foreign currencies		13,371,731			13,104,820
Domestic bankers’ letter of credit		3,786,630			4,805,433
Credit card accounts		6,423,923			6,099,219
Bills bought in foreign currencies		6,865,239			6,647,918
Bills bought in local currency		103,250			134,645
Factoring receivables		141,042			149,688
Advances for customers on guarantees		52,793			44,242
Privately placed bonds		357,902			330,889
Securitized loans		297,591			309,990
Call loans		2,572,865			2,758,156
Bonds purchased under resale agreements		10,883,803			7,583,743
Loan origination costs and fees		451,924			435,005
Others		160,876			45,622
Present value discount		(14,693	)		(4,985	)
Allowance for credit losses		(1,993,429	)		(2,051,468	)
Total		234,423,819			225,547,768

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(5) Details of other loan and receivables are as follows (Unit: Korean Won in millions):

	September 30, 2016			December 31, 2015
CMA accounts		235,000			213,000
Receivables		9,514,661			5,648,159
Accrued income		1,035,305			971,179
Telex and telephone subscription rights and refundable deposits		1,034,554			1,056,309
Other receivables		597,496			650,743
Allowance for credit losses		(138,550	)		(419,902	)
Total		12,278,466			8,119,488

(6) Changes in the allowances for credit losses on loans and receivables are as follows (Unit: Korean Won in millions):

	For the nine months ended September 30, 2016
	Consumers			Corporates			Credit card			Others			Total
Beginning balance		(203,433	)		(1,686,194	)		(145,810	)		(442,620	)		(2,478,057	)
Net reversal of provision (net provision)		(65,153	)		(506,360	)		(139,591	)		(11,664	)		(722,768	)
Recoveries of loans previously charged off		(41,780	)		(147,918	)		(32,248	)		(19,233	)		(241,179	)
Charge-offs		120,805			508,131			169,135			215,338			1,013,409
Sales of loans and receivables		2,017			104,844			—			91,767			198,628
Unwinding effect		7,818			54,885			—			—			62,703
Others		50			36,263			1			(8,257	)		28,057
Ending balance		(179,676	)		(1,636,349	)		(148,513	)		(174,669	)		(2,139,207	)

	For the nine months ended September 30, 2015
	Consumers			Corporates			Credit card			Others			Total
Beginning balance		(326,435	)		(2,128,090	)		(129,117	)		(370,264	)		(2,953,906	)
Net reversal of provision (net provision)		(105,574	)		(797,882	)		(128,622	)		21,853			(1,010,225	)
Recoveries of loans previously charged off		(19,315	)		(75,788	)		(24,184	)		—			(119,287	)
Charge-offs		195,933			744,335			134,387			334			1,074,989
Sales of loans and receivables		2,466			128,178			—			845			131,489
Unwinding effect		9,637			76,449			—			—			86,086
Others		360			87,865			(1	)		9,334			97,558
Ending balance		(242,928	)		(1,964,933	)		(147,537	)		(337,898	)		(2,693,296	)

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11. THE FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES

(1) The fair value hierarchy

The fair value hierarchy is determined by the levels of judgment involved in estimating fair values of financial assets and liabilities. The specific financial instruments characteristics and market condition such as volume of transactions and transparency are reflected to the market observable inputs. The fair value hierarchy gives the highest priority to quoted prices (unadjusted) in active markets for identical assets or liabilities. The Group maximizes the use of observable inputs and minimizes the use of unobservable inputs when measuring fair value of its financial assets and financial liabilities. Fair value is measured based on 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 for measuring 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, derivatives, and debt securities issued by governmental bodies.

• 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 over-the-counter (“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.

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 inherent factors of the asset or liability.

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

	September 30, 2016
	Level 1 (*1)		Level 2 (*1)		Level 3 (*2)		Total
Financial assets:
Financial assets held for trading
Deposits		21,423		—		—		21,423
Debt securities		363,542		2,343,652		—		2,707,194
Equity securities		36,924		—		—		36,924
Beneficiary certificates		—		9,433		—		9,433
Securities loaned		6,808		—		—		6,808
Derivative assets		3,764		2,840,678		76,126		2,920,568
Sub-total		432,461		5,193,763		76,126		5,702,350
Financial assets designed at FVTPL
Debt securities		—		—		3,314		3,314
Equity securities		—		—		12,145		12,145
Sub-total		—		—		15,459		15,459
AFS financial assets
Debt securities		3,356,593		11,900,985		—		15,257,578
Equity securities		397,365		—		1,107,618		1,504,983
Beneficiary certificates		—		1,639,480		477,349		2,116,829
Securities loaned		427,515		133,299		—		560,814
Others		—		55,148		—		55,148
Sub-total		4,181,473		13,728,912		1,584,967		19,495,352
Derivative assets		—		273,445		54		273,499
Total		4,613,934		19,196,120		1,676,606		25,486,660
Financial liabilities:
Financial liabilities held for trading
Deposits		21,651		—		—		21,651
Derivative liabilities		2,558		2,893,543		62,959		2,959,060
Sub-total		24,209		2,893,543		62,959		2,980,711
Financial liabilities designated at FVTPL
Equity-linked securities		—		197		649,991		650,188
Debentures		—		94,850		—		94,850
Sub-total		—		95,047		649,991		745,038
Derivative liability		—		25,175		—		25,175
Total		24,209		3,013,765		712,950		3,750,924

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	December 31, 2015
	Level 1 (*1)		Level 2 (*1)		Level 3 (*2)		Total
Financial assets:
Financial assets held for trading
Deposits		24,884		—		—		24,884
Debt securities		689,600		1,927,806		—		2,617,406
Equity securities		62,945		—		—		62,945
Beneficiary certificates		—		14,017		—		14,017
Securities loaned		10,313		—		—		10,313
Derivative assets		419		2,311,402		78,676		2,390,497
Sub-total		788,161		4,253,225		78,676		5,120,062
Financial assets designed at FVTPL
Debt securities		—		—		986		986
Equity securities		—		—		11,609		11,609
Sub-total		—		—		12,595		12,595
AFS financial assets
Debt securities		2,235,229		11,733,943		—		13,969,172
Equity securities		344,339		—		993,368		1,337,707
Beneficiary certificates		—		740,958		377,070		1,118,028
Securities loaned		615,570		104,440		—		720,010
Others		—		20,367		5,308		25,675
Sub-total		3,195,138		12,599,708		1,375,746		17,170,592
Derivative assets		—		177,155		5,973		183,128
Total		3,983,299		17,030,088		1,472,990		22,486,377
Financial liabilities:
Financial liabilities held for trading
Deposits		24,872		—		—		24,872
Derivative liabilities		136,845		2,365,375		78,607		2,580,827
Sub-total		161,717		2,365,375		78,607		2,605,699
Financial liabilities designated at FVTPL
Equity-linked securities		—		10,660		747,351		758,011
Debentures		—		96,851		—		96,851
Sub-total		—		107,511		747,351		854,862
Total		161,717		2,472,886		825,958		3,460,561

(*1) There were no transfers between Level 1 and Level 2 of financial assets and liabilities measured at fair value. The Group recognizes transfers between the Levels at the end of reporting period within which events have occurred or conditions have changed.

(*2) Certain AFS unquoted equity securities were measured at cost as of September 30, 2016 and December 31, 2015, that are amounting to 22,330 million Won and 42,451 million Won, respectively. These unquoted equity instruments mostly represent minority investments in structured entity vehicles such as asset securitization structures. They are measured at cost because (a) observable inputs of financial information to measure fair value were not available to obtain, or (b) there is a significant variance in likely estimated cash flows or (c) the probabilities for the various estimated cash flows could not be measured reliably. In addition, there were no indicators of impairments in these investments and the Group has no intention to dispose these investments in the foreseeable future.

Certain financial assets are carried at cost, even though under K-IFRS it is required to be remeasured at their fair value, since they do not have quoted market prices in an active market and cannot be measured reliably at fair value. The carrying amount of the financial assets which have been disposed for the nine months ended September 30, 2016 is 161 million Won and related loss from the disposals is 41 million Won.

Financial assets and liabilities designated at FVTPL, financial assets and liabilities held for trading, AFS financial assets, and derivative assets and liabilities are recognized at fair value. Fair value is the amount that would be received to sell an asset, or paid to transfer a liability, in an orderly transaction between market participants at the measurement date.

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Financial instruments are measured at fair value using a quoted market price in active markets. If there is no active market for a financial instrument, the Group establishes the fair value using valuation techniques. Fair value measurement methods for each type of financial instruments are as follows:

	Fair value measurement technique	Input variables
Debt securities	The fair value is measured by discounting the projected cash flows of debt securities by applying the market discount rate that has been applied to a proxy company that has similar credit rating to the issuers of the securities.	Risk-free market rate, credit spread
Equity securities	Among Discounted Cash Flow (“DCF”) Model, Free Cash Flow to Equity (“FCFE”) Model, comparable company analysis, dividend discount model, risk-adjusted rate of return method, and net asset value method, one or more methods are used given the characteristic of the subject of fair value measurement.	Risk-free market rate, market risk premium, corporate beta
Derivatives	The in-house developed model which is based on the models that are used by market participants in the valuation of general OTC derivative products, such as options, interest rate swaps, and currency swap that are based on inputs observable in the market. However, for some complicated financial instruments of which valuation should be based on some assumptions since some significant or all inputs to be used in the model are not observable in the market, the in-house derived model which is developed from the general valuation models, such as Finite Difference Method (“FDM”) or Monte Carlo Simulation.	Risk-free market rate, forward rate, volatility, foreign exchange rate, stock prices, etc.
Financial instruments linked to stock prices or derivatives	The fair value of security linked to stock prices or derivatives is measured by the models such as DCF model, FDM, or Monte Carlo Simulation given the natures of the securities or underlying assets.	Values of underlying assets, risk-free market rate, market rate, dividend and convenience yield, correlation, volatility, credit spread, and foreign exchange rate
Debenture	The fair value is measured by discounting the projected cash flows of a debenture by applying the market discount rate that is reflecting credit rating of the Group.	Risk-free market rate, forward rate

Valuation methods of financial assets and liabilities measured at fair value and classified into Level 3 and significant but unobservable inputs are as follows:

	Fair value measurement technique	Input variable	Range	Impact of changes in significant unobservable inputs on fair value measurement
Derivative assets	Option valuation model and others	Correlation	0.31~0.861	Volatility of fair value increases as correlation increases
		Historical variability	27.5%~40.9%	Volatility of fair value increases as historical variability increase
		Credit risk adjustment ratio	99.73%	Fair value decreases as credit risk adjustment ratio increases
Derivative liabilities	Option valuation model and others	Correlation	0.31~0.861	Volatility of fair value increases as correlation increase
		Historical variability	27.5%~40.9%	Volatility of fair value increase due to historical variability increase
Equity-linked securities	Monte Carlo Simulation and others	Correlation	0.343~0.791	Compound financial instrument’s fair value increases as both of historical variability and correlation increase when correlation decreases, however, despite of increase of historical variability, the fair value of compound financial instrument may decrease
		Historical variability	15.1%~46.3%
Equity securities	External appraisal value and others	Expected growth rate	0%~1%	Fair value increases as expected growth rate increases

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Fair value of financial assets and liabilities classified into level 3 is measured by the Group using its own valuation techniques or using external specialists. Unobservable inputs used in the fair value measurements are produced by the internal system of the Group and the appropriateness of inputs is reviewed regularly.

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

	For the nine months ended September 30, 2016
	January 1, 2016		Net Income (loss) (*1)			Other comprehensive income (loss)			Purchases/ Issuances		Disposals/ Settlements			Transfer to or out of level 3 (*2)			September 30, 2016
Financial assets:
Financial assets held for trading
Derivative assets (*3)		78,676		(2,881	)		—			12,182		(11,311	)		(540	)		76,126
Financial assets designed at FVTPL
Debt securities		986		(181	)		—			2,509		—			—			3,314
Equity securities		11,609		536			—			—		—			—			12,145
Sub-total		12,595		355			—			2,509		—			—			15,459
AFS financial assets
Equity securities (*4)		993,368		(4,944	)		62,539			195,035		(120,925	)		(17,455	)		1,107,618
Beneficiary certificates		377,070		1,012			(1,510	)		120,178		(19,401	)		—			477,349
Others		5,308		594			(642	)		—		(5,260	)		—			—
Sub-total		1,375,746		(3,338	)		60,387			315,213		(145,586	)		(17,455	)		1,584,967
Derivative assets		5,973		3,716			—			—		(9,635	)		—			54
Total		1,472,990		(2,148	)		60,387			329,904		(166,532	)		(17,995	)		1,676,606
Financial liabilities:
Financial liabilities held for trading
Derivative liabilities		78,607		886			—			—		(16,534	)		—			62,959
Financial liabilities designated at FVTPL
Equity-linked securities		747,351		44,006			—			983		(142,349	)		—			649,991
Total		825,958		44,892			—			983		(158,883	)		—			712,950

(*1) The loss amounting to 31,766 million Won for the nine months ended September 30, 2016, which is from financial assets and liabilities that the Group holds , has been recognized in net gain (loss) on financial instruments at FVTPL and net gain (loss) on AFS financial assets in the consolidated statement of comprehensive income.

(*2) The Group recognizes transfers between levels at the end of reporting period within which events have occurred or conditions have changed.

(*3) As the variables used for the valuation of currency related derivatives were observable in the market, such derivatives were transferred into level 2 from level 3.

(*4) AFS financial assets were transferred out of level 1 to level 3 upon the change of the fair value measurement method of the assets by using quoted prices in the active market from previously using the external valuation specialists.

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	For the nine months ended September 30, 2015
	January 1, 2015		Net Income (loss) (*1)			Other comprehensive income (loss)			Purchases/ Issuances			Disposals/ Settlements			Transfer to or out of level 3 (*2)			September 30, 2015
Financial assets:
Financial assets held for trading:
Derivative assets(*3)		49,274		56,040			—			(6,733	)		(18,121	)		(979	)		79,481
Financial assets designed at FVTPL:
Equity-linked securities		6,066		—			—			—			(6,066	)		—			—
Equity securities		10,567		578			—			—			—			—			11,145
Sub-total		16,633		578			—			—			(6,066	)		—			11,145
AFS financial assets:
Equity securities (*4)		1,031,918		(32,274	)		25,727			93,543			(95,823	)		(13,123	)		1,009,968
Beneficiary certificates		355,694		5,774			(11,875	)		100,568			(59,768	)		—			390,393
Others		14,241		(7,063	)		1,697			—			(3,239	)		—			5,636
Sub-total		1,401,853		(33,563	)		15,549			194,111			(158,830	)		(13,123	)		1,405,997
Derivative assets		11,946		6,014			—			—			(11,680	)		—			6,280
Total		1,479,706		29,069			15,549			187,378			(194,697	)		(14,102	)		1,502,903
Financial liabilities:
Financial liabilities held for trading:
Derivative liabilities (*3)		41,711		56,433			—			2,610			(16,736	)		(1,202	)		82,816
Financial liabilities designated at FVTPL:
Equity-linked securities(*5)		361,993		(100,825	)		—			798,142			(300,560	)		(197	)		758,553
Total		403,704		(44,392	)		—			800,752			(317,296	)		(1,399	)		841,369

(*1) The loss amounting to 58,710 million Won for the nine months ended September 30, 2015, which is from financial assets and liabilities that the Group holds , has been recognized in net gain (loss) on financial instruments at FVTPL and net gain (loss) on AFS financial assets in the consolidated statement of comprehensive income.

(*2) The Group recognizes transfers between levels at the end of reporting period within which events have occurred or conditions have changed.

(*3) As the variables used for the valuation of equity related derivatives and interest rate related derivatives were observable in the market, such derivatives were transferred into level 2 from level 3.

(*4) AFS financial assets were transferred out of level 1 to level 3 upon the change of the fair value measurement method of the assets by using quoted prices in the active market from previously using the external valuation specialists.

(*5) Since the observable market data for equity-linked securities became available, such assets and liabilities were transferred out of level 3 to level 2.

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(4) Sensitivity analysis through reasonable changes of the unobservable inputs used to measure Level 3 financial instruments are as follows:

The sensitivity analysis of the financial instruments is performed by classifying with favorable and unfavorable changes based on how changes in unobservable assumptions would have effects on the fluctuations of financial instruments’ value. When the fair value of a financial instrument is affected by more than one unobservable assumption, the below table reflects the most favorable or the most unfavorable changes which resulted from varying the assumptions individually. The sensitivity analysis was performed for two types of level 3 financial instruments: (1) interest rate related derivatives, currency related derivatives, equity related derivatives, and equity-linked securities of which fair value changes are recognized as net income; (2) equity securities and beneficiary certificates of which fair value changes are recognized as other comprehensive income. Equity securities classified as level 3 but measured at costs are excluded from sensitivity analysis.

The following table presents the sensitivity analysis which is based on reasonable estimates to explain the effect of reasonably possible alternative assumptions on the fair value of a level 3 financial instruments as of September 30, 2016 and December 31, 2015 (Unit: Korean Won in millions).

	As of September 30, 2016										As of December 31, 2015
	Net income (loss)					Other comprehensive income (loss)					Net income (loss)					Other comprehensive income (loss)
	Favorable		Unfavorable			Favorable		Unfavorable			Favorable		Unfavorable			Favorable		Unfavorable
Financial assets:
Financial assets held for trading
Derivative assets (*1)(*2)		7,928		(6,533	)		—		—			10,674		(9,729	)		—		—
Financial assets designed at FVTPL:
Equity securities (*6)		773		718			—		—			793		(739	)		—		—
AFS financial Assets
Equity securities (*3)(*4)		—		—			33,965		(17,968	)		—		—			37,648		(20,869	)
Beneficiary certificates (*4)		—		—			2,645		(2,312	)		—		—			4,102		(3,875	)
Others (*5)		—		—								—		—			80		(80	)
Total		8,701		(5,815	)		36,610		(20,280	)		11,467		(10,468	)		41,830		(24,824	)
Financial liabilities:
Financial liabilities held for trading
Derivative liabilities (*1)(*2)		8,261		(8,365	)		—		—			13,469		(12,281	)		—		—
Financial liabilities designated at FVTPL
Equity-linked securities (*1)		1,353		(1,345	)		—		—			2,289		(2,247	)		—		—
Total		9,614		(9,710	)		—		—			15,758		(14,528	)		—		—

(*1) Fair value changes of equity related derivatives assets and liabilities and equity-linked securities are calculated by increasing or decreasing historical fluctuation rate of stock price and correlation, which are major unobservable variables, by 10%, respectively. In the case of interest rate and currency related derivative assets and liabilities, fair value changes are calculated by increasing or decreasing volatility of interest rate and credit risk adjustment ratio, which are major unobservable variables, by 10%, respectively.

(*2) Both derivative assets (and liabilities) held for trading and hedging are included.

(*3) Fair value changes of equity securities are calculated by increasing or decreasing growth rate (0~1%) and discount rate or liquidation value (-1~1%) and discount rate. The growth rate, discount rate, and liquidation value are major unobservable variables.

(*4) Among the equity securities, even if the sensitivity analysis of the capital contributions and beneficiary certificates is not possible in practice, fair value changes of beneficiary certificates and other securities whose major unobservable variables are composed of the real estate are calculated by increasing or decreasing price fluctuation of real estate which are underlying assets and discount rate by 1%.

(*5) Fair value changes of beneficiary certificates and other securities are calculated by increasing or decreasing price fluctuation of trust property or real estate which are underlying assets and discount rate by 1%. The price of trust property, real estates, and discount rate are major unobservable variables.

(*6) Fair value changes are calculated by increasing or decreasing the discount rate, which are major unobservable variables, by 10%, respectively.

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

	As of September 30, 2016
	Fair value								Book value
	Level 1		Level 2		Level 3		Total
Financial assets:
HTM financial assets		704,169		13,302,003		—		14,006,172		13,853,700
Loans and receivables		—		—		264,985,717		264,985,717		261,188,233
Financial liabilities:
Deposits due to customers		—		220,761,868		—		220,761,868		220,465,585
Borrowings		—		17,287,754		—		17,287,754		17,220,127
Debentures		—		23,774,981		—		23,774,981		23,193,170
Other financial liabilities		—		26,725,471		—		26,725,471		26,725,880
	As of December 31, 2015
	Fair value								Book value
	Level 1		Level 2		Level 3		Total
Financial assets:
HTM financial assets		1,045,022		12,768,727		—		13,813,749		13,621,640
Loans and receivables		—		—		248,253,422		248,253,422		244,842,062
Financial liabilities:
Deposits due to customers		—		208,133,241		—		208,133,241		209,141,826
Borrowings		—		20,084,789		—		20,084,789		20,033,917
Debentures		—		22,288,472		—		22,288,472		21,898,859
Other financial liabilities		—		16,961,987		—		16,961,987		16,964,206

The fair values of financial instruments are measured using quoted market price in active markets. In case there is no active market for financial instruments, the Group determines the fair value using alternative assumptions through developing fair value measurement methods. Alternative assumptions and fair value measurement methods for financial assets and liabilities that are measured at amortized costs are given as follows:

	Fair value measurement technique	Input variables
Debt securities	The fair value is measured by discounting the projected cash flows of debt securities by applying the market discount rate that has been applied to a proxy company that has similar credit rating to the issuers of the securities.	Risk-free market rate, Credit spread
Loans and receivables	The fair value is measured by discounting the projected cash flows of loan products by applying the market discount rate that has been applied to a proxy company that has similar credit rating to the debtor.	Risk-free market rate, Credit spread, Prepayment-rate
Deposit due to customers, Borrowings and Debentures	The fair value is measured by discounting the projected cash flows of debt products by applying the market discount rate that is reflecting credit rating of the Group.	Risk-free market rate, Forward rate

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12. DERECOGNITION AND OFFSET OF FINANCIAL INSTRUMENTS

(1) Derecognition of financial assets

1) Transferred financial assets that meet condition of derecognition

The book value, fair value of, and maximum exposure to loss from the financial assets that were derecognized from the separate financial statements of the Group through disposals, but the Group still have continuous involvements are as follows (Unit: Korean Won in millions):

	September 30, 2016
	Type of continuous involvement	Book value of continuous participation		Fair value of continuous participation		Maximum exposure to loss
Conditional disposal of loans to KAMCO (*)	Post settlement		—		—		701
	December 31, 2015
	Type of continuous involvement	Book value of continuous participation		Fair value of continuous participation		Maximum exposure to loss
Conditional disposal of loans to KAMCO (*)	Post settlement		—		—		701

(*) For ex-post settling up amount of the collateral is not fixed yet, expected cash flow cannot be reliably measured as of September 30, 2016 and December 31, 2015, and the maximum exposure to loss is disclosed at the transfer price. Though the transfer does not qualify for derecognition in accordance with K-IFRS 1039 Financial Instrument: Recognition and Measurement, the Group derecognized the financial asset from the consolidated financial statements applying exception for retrospective application of transactions before the date of transition to IFRSs in K-IFRS 1101 First-time Adoption of K-IFRS.

2) Transferred financial assets that are not derecognized in their entirety

a) Disposal of securities under repurchase agreement

The financial instruments that were disposed but the Group agreed to repurchase at the fixed amounts at the same time, so that they did not meet the conditions of derecognition, are as follows (Unit: Korean Won in millions):

		September 30, 2016		December 31, 2015
Transferred property	AFS financial assets		1,768,365		603,274
	HTM financial assets		7,129		139,340
	Total		1,775,494		742,614
Related liabilities	Disposal of securities under repurchase agreements		1,654,321		671,629

- 37 -

b) Securities loaned

When the Group loans its securities to outside parties, the legal ownerships of the securities are transferred, however, they should be returned at the end of lending period and therefore the Group does not derecognize them from the consolidated financial statements as it owns majority of risks and benefits from the securities continuously regardless of the transfer of legal ownership. The carrying amounts of securities loaned are as follows (Unit: Korean Won in millions):

		September 30, 2016		December 31, 2015		Loaned to
Financial assets at FVTPL	Equity securities- listed stock		6,809		10,313	Samsung Securities Co., Ltd. and others
AFS financial assets	Korean treasury and government agencies bonds		560,814		720,010	Korea Securities Finance Corporation and others
	Total		567,623		730,323

The details of the transferred financial assets that are not derecognized in their entirety, such as disposal of securities under repurchase agreement or securities loaned, are explained in Note 18.

(2) The offset of financial assets and liabilities

The Group possesses both the uncollected domestic exchange receivables and unpaid domestic exchange payable, which satisfy offsetting criteria of K-IFRS 1032, Financial Instruments: Presentation. Therefore, the total number of uncollected domestic exchange receivables or unpaid domestic exchange payable has been countervailed with part of unpaid domestic exchange payable or uncollected domestic exchange receivables, respectively, and has been disclosed in loans and receivables or other financial liabilities of the Group’s statements of financial position, respectively.

The Group possesses the derivative assets, derivative liabilities, receivable spot exchange, and payable spot exchange which do not satisfy the offsetting criteria of K-IFRS 1032, but provide the Group the right of, under the circumstances of the trading party’s defaults, insolvency, or bankruptcy, the offsetting. Item such as cash collateral cannot satisfy the offsetting criteria of K-IFRS 1032, but in accordance with the collateral arrangements and under the circumstances of the trading party’s default, insolvency, or bankruptcy, the derivative assets, derivative liabilities, receivable spot exchange, and the net amount of payable spot exchange can be offset.

The Group has entered into a sale and repurchase agreements and accounted it as collateralized borrowing. Also, the Group has entered into a purchase and resale agreement and accounted it as secured loans. The repurchase and resale agreement can have the offsetting right only under the trading party’s default, insolvency, or bankruptcy which do not satisfy the offsetting criteria of K-IFRS 1032, the Group recorded the collateralized borrowings in borrowings and the secured loans in loans and receivables. The Group under the repurchase agreements has offsetting right only upon the counter-party’s default, insolvency or bankruptcy, thus the repurchase agreements are applied by the TBMA/ISMA Global Master Repurchase Agreement of which do not satisfy the offsetting criteria of K-IFRS 1032. The Group disclosed bonds sold (purchased) under repurchase agreements as borrowings (loans and receivables).

- 38 -

As of September 30, 2016 and December 31, 2015, the financial instruments to be set off and may be covered by master netting agreements and similar agreements are given as below (Unit: Korean Won in millions):

	September 30, 2016
	Gross amounts of recognized financial assets		Gross amounts of recognized financial  liabilities set off		Net amounts of financial assets presented		Related amounts not set off in the consolidated statement of financial position				Net amounts
							Master netting agreement		Cash collateral received
Financial assets:
Derivative assets and others (*1)		3,172,110		13,144		3,158,966		10,268,785		76,959		1,094,452
Receivable spot exchange (*2)		8,281,230		—		8,281,230
Bonds purchased under resale agreements (*2)		10,883,803		—		10,883,803		10,883,803		—		—
Domestic exchanges receivable (*2)(*5)		24,191,665		23,708,032		483,633		—		—		483,633
Total		46,528,808		23,721,176		22,807,632		21,152,588		76,959		1,578,085
	September 30, 2016
	Gross amounts of recognized financial liabilities		Gross amounts of recognized financial assets set off		Net amounts of financial liabilities presented		Related amounts not set off in the consolidated statement of financial position				Net amounts
							Master netting agreement		Cash collateral pledged
Financial liabilities:
Derivative liabilities and others (*1)		3,412,650		13,144		3,399,506		10,636,837		9,930		1,031,834
Payable spot exchange (*3)		8,279,095		—		8,279,095
Bonds sold under repurchase agreements (*4)		1,654,321		—		1,654,321		1,654,321		—		—
Domestic exchanges payable (*3)(*5)		30,194,628		23,708,032		6,486,596		6,126,301		—		360,295
Total		43,540,694		23,721,176		19,819,518		18,417,459		9,930		1,392,129

(*1) The items include derivatives held for trading, derivatives for hedging and equity linked securities.

(*2) The items are included in loans and receivables.

(*3) The items are included in other financial liabilities.

(*4) The items are included in borrowings.

(*5) Certain financial assets and liabilities are presented as net amounts.

	December 31, 2015
	Gross amounts of recognized financial assets		Gross amounts of recognized financial liabilities set off		Net amounts of financial assets presented		Related amounts not set off in the consolidated statement of financial position				Net amounts
							Master netting agreement		Cash collateral received
Financial assets:
Derivative assets and others (*1)		2,573,107		8,857		2,564,250		5,615,376		53,162		1,239,821
Receivable spot exchange (*2)		4,344,109		—		4,344,109
Bonds purchased under resale agreements (*2)		7,583,743		—		7,583,743		7,583,743		—		—
Domestic exchanges receivable (*2)(*5)		29,980,302		29,467,000		513,302		—		—		513,302
Total		44,481,261		29,475,857		15,005,404		13,199,119		53,162		1,753,123

- 39 -

	December 31, 2015
	Gross amounts of recognized financial liabilities		Gross amounts of recognized financial assets set off		Net amounts of financial liabilities presented		Related amounts not set off in the consolidated statement of financial position				Net amounts
							Master netting agreement		Cash collateral pledged
Financial liabilities:
Derivative liabilities and others (*1)		3,144,595		8,857		3,135,738		6,205,345		173,268		1,100,044
Payable spot exchange (*3)		4,342,919		—		4,342,919
Bonds sold under repurchase agreements (*4)		671,629		—		671,629		671,629		—		—
Domestic exchanges payable (*3)(*5)		31,493,204		29,467,000		2,026,204		2,020,717		—		5,487
Total		39,652,347		29,475,857		10,176,490		8,897,691		173,268		1,105,531

(*1) The items include derivatives held for trading, derivatives for hedging and equity linked securities.

(*2) The items are included in loans and receivables.

(*3) The items are included in other financial liabilities.

(*4) The items are included in borrowings.

(*5) Certain financial assets and liabilities are presented as net amounts.

13. INVESTMENTS IN JOINT VENTURES AND ASSOCIATES

(1) Investments in joint ventures and associates accounted for using the equity method of accounting are as follows (Unit: Korean Won in millions):

		Percentage of ownership (%)				Financial statements as of
Subsidiaries	Main business	September 30, 2016		December 31, 2015
Woori Bank and Woori Private Equity Asset Management Company Ltd.:
Woori Blackstone Korea Opportunity No.1 Private Equity Fund	Finance		26.4		26.4	September 30
Woori Bank:
Kumho Tire Co., Inc. (*1)(*2)	Manufacturing		14.2		14.2	June 30 (*3)
Woori Service Networks Co., Ltd. (*4)	Freight & staffing services		4.9		4.9	August 31 (*3)
Korea Credit Bureau Co., Ltd. (*5)	Credit information		9.9		9.9	September 30
Korea Finance Security Co., Ltd. (*4)	Security service		15.0		15.0	August 31 (*3)
United PF 1st Corporate Financial Stability (*13)	Finance		—		17.7	—
Chin Hung International Inc. (*2)	Construction		28.4		28.4	August 31 (*3)
Poonglim Industrial Co., Ltd. (*12)(*16)	”		31.1		30.7	June 30 (*3)
STX Engine Co., Ltd. (*1)(*2)	Manufacturing		29.2		29.2	June 30 (*3)
Samho International Co., Ltd. (*1)(*2)	Construction		7.8		7.8	September 30
Force TEC Co., Ltd. (*6)	Freight & staffing services		34.4		34.4	—
Hana Construction Co., Ltd. (*14)	Construction		—		22.4	—
STX Corporation (*1) (*2)(*16)	Wholesale of non-specialized goods		15.0		15.0	June 30 (*3)
Osung LST Co., Ltd. (*1) (*2)(*15)	Manufacturing		11.		11.1	June 30 (*3)
Saman Corporation (*5)	General construction Technology service		9.2		9.2	June 30 (*3)
Dongwoo C & C Co., Ltd. (*6)	Construction		23.2		23.2	—
SJCO Co., Ltd. (*6)	Aggregate transportation and wholesale		26.5		26.5	—
Ilyang construction Co., Ltd. (*14)	Construction		—		40.0	—
G2 Collection Co., Ltd. (*6)	Wholesale and retail sales		28.9		28.9	—
The Base Enterprise Co., Ltd. (*6)(*10)	Manufacturing		48.4		—	—
Heungjiwon Co., Ltd. (*6)(*10)	Other printing		27.8		—	—
Kyesan Engineering Co., Ltd. (*6)(*10)	Construction		23.2		—	—
Good Software Lap Co., Ltd. (*6)(*10)	Service		28.9		—	—
Wongwang Co., Ltd. (*6)(*10)	Wholesale and real estate		29.0		—	—
Sejin Construction Co., Ltd. (*6)(*9)	Construction		29.6		—	—

- 40 -

		Percentage of ownership (%)				Financial statements as of
Subsidiaries	Main business	September 30, 2016		December 31, 2015
Gachi Staff Co.,Ltd. (*6)(*10)	Wholesale of Luggage and Travel Related Accessories		27.1		—	—
Deokwon Food Co., Ltd . (*6)(*10)	Processing, Preserving of Poultry Products		27.3		—	—
QTS Shipping Co., Ltd. (*6)(*9)	Freight Transport Brokerage, Agency and Other Supporting Transport Services		49.4		—	—
Woori Growth Partnerships New Technology Private Equity Fund (*11)	Other financial business		23.1		—	September 30
Woori Private Equity Fund:
Woori Renaissance Holdings (*7)	Other financial business		51.6		51.6	September 30
Woori Private Equity Asset Management Company Ltd.:
Woori Columbus First PEF (*8)	Other financial business		—		1.9	September 30

(*1) The Group has significant influence on these entities through its position in the creditors’ council which is the decision making body regarding to financial and operational policies of associates.

(*2) The investments in associates that have quoted market prices are Kumho Tire Co., Ltd. (current period: KRW 11,300, previous year: KRW 6,730), Chin Hung International Inc. (current period: KRW 1,905, previous year: KRW 2,300), STX Engine Co., Ltd (current period: KRW 6,730, previous year: KRW 6,800), Samho International Co., Ltd. (current period: KRW 17,100, previous year: KRW 15,550), STX Corporation. (Current period: KRW 2,450, previous year KRW 3,435), and Osung LST Co., Ltd. (Previous year: KRW 795).

(*3) The significant transactions and events between the end of reporting dates of the investees and the investors have been properly adjusted.

(*4) The significant business of Woori Service Network Co., Ltd. and Korea Finance Security Co., Ltd. is transacted mostly with the Group.

(*5) The Group can participate in decision-making body and exercise significant influence over Korea Credit Bureau Co., Ltd. and Saman Corporation. through business partnerships.

(*6) The carrying value of investments in Force TEC Co., Ltd. and Dongwoo C & C Co., Ltd., SJCO Co.,Ltd., and G2 collection Co., Ltd., The Base Enterprise Co., Ltd., Heungjiwon Co., Ltd., Kyesan Engineering Co., Ltd., Good Software Lab Co., Ltd., Wongwang Co., Ltd., Sejin Construction Co., Ltd., Gachi Staff Co., Ltd., Deokwon Food Co., Ltd. and QTS Shipping Co.,Ltd. is nil as of September 30, 2016 and December 31, 2015, respectively.

(*7) The Group owns more than 50% ownership of Woori Renaissance Holdings, however, the investment in this entity is accounted for using equity method as the ownership right and related contracts meet the definition of joint arrangement under K-IFRS 1111 Joint Arrangements.

(*8) As a general partner of Woori Columbus First PEF, the Group has significant influence over the entity’s operational and financial policy making process, including participating in dividend or other distribution. As such, the investment in this entity is accounted for using equity method. Meanwhile, as of September 30, 2016, original investments in the associates were returned.

(*9) Due to debt-equity swap and conversion of convertible bonds occurred for the nine months ended September 30, 2016 the ownership interest of Sejin Construction Co., Ltd., QTS Shipping Co., Ltd. has increased.

(*10) Even though the Group’s ownership ratio of the entity was more than 20%, it did not have significant influence over the entity due to the fact that the entity was going through workout process under receivership, thus it was excluded from the investment in associates. However, as the workout was over during the year ended September 30, 2016, it has been included in the investment in associates.

(*11) Due to capital contribution by the Group occurred during the nine months ended September 30, 2016, it has been included in the investment in associates.

(*12) Due to acquisition of treasury stock of Poonglim Industrial Co., Ltd. during the nine months ended September 30, 2016, Percentage of ownership increased.

(*13) As the Group lost significant influence over United PF 1st Corporate Financial Stability during the nine months ended September 30, 2016, it was excluded from the investment in associates.

(*14) As the Group sold its ownership interests in the entities during the nine months ended September 30, 2016, they were excluded from the investment in associates

(*15) Due to transfers to assets held for sale occurred during the nine months ended September 30, 2016, it was excluded from the investments in associates.

(*16) Equity method was suspended on the investee due to accumulated loss on equity method exceeded the value of Investments in subsidiaries and associates for the nine months ended September 30, 2016

- 41 -

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

	For the nine months ended September 30, 2016
	Acquisition cost		January 1, 2016		Share of profits (losses)			Acquisition (*1)		Disposal and others (*2)(*3)			Dividends			Change in Capital			Impairment			September 30, 2016
Woori Blackstone Korea Opportunity No.1 Private Equity Fund		43,917		56,044		1,929			—		(12,286	)		(5,607	)		—			—			40,080
Kumho Tire Co., Inc.		175,652		214,050		(9,770	)		—		—			—			1,828			—			206,108
Woori Service Networks Co., Ltd.		108		139		9			—		—			(12	)		—			—			136
Korea Credit Bureau Co., Ltd.		3,313		5,291		147			—		—			(135	)		—			—			5,303
Korea Finance Security Co., Ltd.		3,266		3,711		(278	)		—		—			(54	)		—			—			3,379
United PF 1st Corporate financial stability		172,441		187,592		3,265			—		(190,857	)		—			—			—			—
Chin Hung International Inc.		89,725		43,936		(637	)		—		—			—			89			—			43,388
Poonglim Industrial Co., Ltd.		13,916		5,313		(2,346	)		—		—			—			(2,967	)		—			—
STX Engine Co., Ltd.		92,038		51,276		(3,444	)		—		—			—			(1,563	)		—			46,269
Samho Co., Ltd.		7,492		14,325		3,470			—		—			—			—			—			17,795
STX Corporation		42,215		4,251		(8,179	)		—		—			—			3,928			—			—
Osung LST Co., Ltd.		15,405		10,985		(2,903	)		—		(6,928	)		—			19			(1,173	)		—
Saman Corporation		8,521		8,521		418			—		—			—			(74	)		—			8,865
K-Growth crowd 2step Fund		800		—		(13	)		800		(787	)		—			—			—			—
Woori Growth Partnerships New Technology Private Equity Fund		9,561		—		(491	)		9,561		—			—			—			—			9,070
Woori Renaissance Holdings		63,000		37,121		2,020			—		—			(2	)		—			—			39,139
Woori Columbus First PEF		1,200		1,306		(43	)		—		(1,065	)		(198	)		—			—			—
		738,430		643,861		(16,846	)		10,361		(211,923	)		(6,008	)		1,260			(1,173	)		419,532

(*1) AFS financial assets decreased by 5,421 million Won through transfers to investments in associates occurred during the nine months ended September 30, 2016

(*2) Investments in associates decreased by 155,220 million Won through transfers to AFS financial assets occurred during the nine months ended September 30, 2016.

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(*3) Investments in associates decreased by 6,928 million Won through transfers to assets held for sale occurred during the nine months ended September 30, 2016.

	For the nine months ended September 30, 2015
	Acquisition cost		January 1, 2015		Share of profits (losses)			Acquisition (*)		Disposal and others			Dividends			Change in Capital			Impairment			Other changes		September 30, 2015
Woori Blackstone Korea Opportunity No.1 Private Equity Fund		81,608		100,436		4,340			—		(21,525	)		(13,120	)		—			—			—		70,131
Kumho Tire Co., Inc.		175,652		224,829		(10,976	)		—		—			—			5,391			—			—		219,244
Woori Service Networks Co., Ltd.		108		130		14			—		—			(12	)		—			—			—		132
Korea Credit Bureau Co., Ltd.		2,215		3,378		204			—		—			—			—			—			—		3,582
Korea Finance Security Co., Ltd.		3,337		4,272		(47	)		—		(82	)		(55	)		—			—			—		4,088
United PF 1st Corporate financial stability		191,617		203,418		2,741			—		(19,178	)		—			—			—			—		186,981
Chin Hung International Inc.		60,275		28,491		(15,515	)		29,451		—			—			472			—			—		42,899
Poonglim Industrial Co., Ltd.		13,917		—		5,443			—		—			—			(1,403	)		(14,296	)		15,775		5,519
STX Engine Co., Ltd.		47,008		2,292		5,093			45,030		—			—			2,191			—			6,032		60,638
Samho Co., Ltd.		7,492		11,257		1,973			—		—			—			52			—			—		13,282
STX Corporation		42,215		14,348		(3,835	)		—		—			—			563			—			109		11,185
Osung LST Co., Ltd.		15,405		18,482		(4,590	)		—		—			—			17			(36,486	)		30,661		8,084
Phoenix Digital Tech Co., Ltd.		1,334		—		1,610			—		(1,610	)		—			—			—			—		—
Woori Renaissance Holdings		63,000		36,019		3,839			—		—			(2,416	)		—			—			—		37,442
Woori Columbus First PEF		1,200		1,084		177			—		—			—			—			—			—		1,261
		706,383		648,436		(9,529	)		74,481		(42,395	)		(15,603	)		7,283			(50,782	)		52,577		664,468

(*) Investments in associates increased by 74,481 million won through transfers between accounts, such as loan-equity swap occurred during the nine months ended September 30, 2015.

(3) Summary financial information relating to investments in joint ventures and associates accounted for using the equity method of accounting is as follows (Unit: Korean Won in millions):

	September 30, 2016
	Assets		Liabilities		Operating revenue		Net income (loss)
Woori Blackstone Korea Opportunity No.1 Private Equity Fund		151,534		222		10,624		7,322
Kumho Tire Co., Inc.		5,152,241		3,943,631		1,446,604		(21,938	)
Woori Service Networks Co., Ltd.		4,501		1,750		10,836		612
Korea Credit Bureau Co., Ltd.		61,925		10,918		35,792		601
Korea Finance Security Co., Ltd.		32,114		9,596		37,983		714
Chin Hung International Inc.		457,530		389,566		402,056		2,040
Poonglim Industrial Co., Ltd.		312,667		328,761		103,780		(12,353	)
STX Engine Co., Ltd.		896,407		789,566		244,984		(11,960	)
Samho Co., Ltd.		754,262		527,226		642,744		43,814
STX Corporation		994,143		1,286,820		833,488		(364,726	)
Saman Corporation		105,443		67,439		49,515		4,546
Woori Growth Partnerships New Technology Private Equity Fund		39,793		491		26		(1,533	)
Woori Renaissance Holdings Inc.		118,721		47,610		5,450		3,912
Woori Columbus First PEF		812		503		3,763		(445	)

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	December 31, 2015
	Assets		Liabilities		Operating revenue		Net income (loss)
Woori Blackstone Korea Opportunity No.1 Private Equity Fund		212,171		414		49,264		35,099
Kumho Tire Co., Inc.		5,197,002		3,926,952		3,039,519		(27,893	)
Woori Service Networks Co., Ltd.		4,577		1,772		14,661		824
Korea Credit Bureau Co., Ltd.		63,960		13,076		53,184		2,005
Korea Finance Security Co., Ltd.		30,195		5,457		50,932		1,890
United PF 1st Corporate Financial Stability		1,088,325		30,390		117,579		18,911
Chin Hung International Inc.		516,305		446,412		624,110		(39,936	)
Poonglim Industrial Co., Ltd.		352,683		331,801		206,904		13,185
STX Engine Co., Ltd.		958,468		834,499		417,125		36,615
Samho Co., Ltd.		709,109		526,379		892,871		39,664
STX Corporation		1,232,014		1,181,593		1,236,168		(44,404	)
Osung LST Co., Ltd.		125,859		42,981		38,767		(30,108	)
Saman Corporation		80,970		49,334		114,592		(116,019	)
Woori Renaissance Holdings Inc.		95,421		28,218		12,013		6,813
Woori Columbus First PEF		68,466		562		12,158		11,570

(4) The entities that the Group has not applied equity method of accounting although the Group’s ownership interest is more than 20% as of September 30, 2016 and December 31, 2015, are as follows:

	September 30, 2016
	Number of shares owned		Ownership (%)
Orient Shipyard Co., Ltd. (*)		465,050		23.0
Saenuel Co., Ltd. (*)		3,531		37.4
E Mirae Tech Co., Ltd. (*)		7,696		41.0
Jehin Trading Co., Ltd. (*)		81,610		27.3
NK Eng. Co., Ltd. (*)		697,033		23.1
The season Co., Ltd. (*)		18,187		30.1
Yuil PESC Co., Ltd. (*)		8,642		24.0
DOWOO (*)		13,477		41.9
Reading Doctors Co., Ltd. (*)		7,398		35.4
Daea SNC Co., Ltd.(*)		1,253		24.0

(*) Even though the Group’s ownership ratio of the entity is more than 20% as a limited partner, it is determined that the Group does not have significant influence over the entity since the Group cannot exercise significant influence in the decision making bodies, such as investment committee, thus it has been excluded from the investment in associates.

- 44 -

	As of December 31, 2015
	Number of shares owned		Ownership (%)
Orient Shipyard Co., Ltd. (*)		465,050		23.0
The Base Enterprise Co., Ltd. (*)		68,470		48.4
Saenuel Co., Ltd. (*)		3,531		37.4
Heungjiwon Co., Ltd. (*)		32,849		27.8
E Mirae Tech Co., Ltd. (*)		7,696		41.0
Jehin Trading Co., Ltd. (*)		81,610		27.3
NK Eng Co., Ltd. (*)		697,033		23.1
The season Co., Ltd. (*)		18,187		30.1
Deokwon Food Co., Ltd. (*)		14,300		27.3
Yuil PESC Co., Ltd. (*)		8,642		24.0
Kyesan Engineering Co.,Ltd. (*)		60,581		23.2
Good Software Lab Co.,Ltd. (*)		17,121		28.9
DOWOO (*)		13,477		41.9
Reading Doctors Co., Ltd. (*)		7,398		35.4
Orient Star Logistics Co., Ltd. (*)		17,293		22.3
Wongwang Co., Ltd. (*)		2,590		29.0

(*) Even though the Group’s ownership ratio of the entity is more than 20% as a limited partner, it is determined that the Group does not have significant influence over the entity since the Group cannot exercise significant influence in the decision making bodies, such as investment committee, thus it has been excluded from the investment in associates.

(5) As of September 30, 2016 and December 31, 2015, the reconciliations from the net assets of associates based on the ownership ratio of the Group to its corresponding book value of investment in joint ventures and associates are as follow (Unit: Korean Won in millions except for ownership):

	As of September 30, 2016
	Net assets			Ownership (%)		Net assets of associates (or joint ventures)			cost-book value differential		Impairment			Intercompany transaction and others			Book value
Woori Blackstone Korea Opportunity No.1 Private Equity Fund		151,312			26.4		39,943			—		—			137			40,080
Kumho Tire Co., Inc. (*)		1,096,039			14.2		155,100			48,459		—			2,549			206,108
Woori Service Networks Co., Ltd.		2,751			4.9		136			—		—			—			136
Korea Credit Bureau		51,007			9.9		5,056			247		—			—			5,303
Korea Finance Security Co., Ltd.		22,518			15.0		3,379			—		—			—			3,379
Chin Hung International Inc. (*)		66,780			28.4		18,989			24,565		—			(166	)		43,388
Poonglim Industrial Co., Ltd. (*)		(108,356	)		31.1		(33,748	)		52,612		(22,472	)		3,608			—
STX Engine Co., Ltd.		106,841			29.2		31,235			14,954		—			80			46,269
Samho Co., Ltd.		227,036			7.8		17,795			—		—			—			17,795
STX Corporation (*)		(292,783	)		15.0		(43,852	)		24,614		(28,370	)		47,608			—
Saman Corporation		38,004			9.2		3,492			5,373		—			—			8,865
Woori Growth Partnerships New Technology Private Equity Fund		39,302			23.1		9,070			—		—			—			9,070
Woori Renaissance Holdings		71,111			51.6		36,722			—		(6,441	)		8,858			39,139
Woori Columbus First PEF		309			—		—			—		—			—			—

(*1) The net asset amount is after reflecting preferred stocks.

- 45 -

	As of December 31, 2015
	Total net asset			Ownership (%)		Net assets of associates (or joint ventures)			cost-book value differentia		Impairment			Intercompany transaction and others			Book Value
Woori Blackstone Korea Opportunity No.1 Private Equity Fund		211,757			26.4		55,900			—		—			144			56,044
Kumho Tire Co., Inc. (*)		1,152,161			14.2		163,042			48,459		—			2,549			214,050
Woori Service Networks Co., Ltd.		2,805			4.9		139			—		—			—			139
Korea Credit Bureau		50,884			9.9		5,043			248		—			—			5,291
Korea Finance Security Co., Ltd.		24,738			15.0		3,711			—		—			—			3,711
United PF 1st Corporate financial stability		1,057,935			17.7		187,538			—		—			54			187,592
Chin Hung International Inc. (*)		68,132			28.4		19,374			24,566		—			(4	)		43,936
Poonglim Industrial Co., Ltd. (*)		(58,065	)		30.7		(17,837	)		45,622		(22,472	)		—			5,313
STX Engine Co., Ltd. (*)		123,969			29.2		36,230			14,927		—			119			51,276
Samho International Co., Ltd.		182,730			7.8		14,325			—		—			—			14,325
STX Corporation		50,421			15.0		7,552			24,610		(28,370	)		459			4,251
Osung LST Co., Ltd.		82,878			11.1		9,238			35,597		(33,839	)		(11	)		10,985
Saman Corporation		31,636			9.2		2,911			5,610		—			—			8,521
Woori Renaissance Holdings		67,203			51.6		34,677			—		(6,441	)		8,885			37,121
Woori Columbus First PEF		67,904			1.9		1,304			6		—			(4	)		1,306

(*) The net asset amount is after reflecting preferred stocks.

14. INVESTMENT PROPERTIES

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

	September 30, 2016			December 31, 2015
Acquisition cost		396,528			376,192
Accumulated depreciation		(28,465	)		(24,696	)
Net carrying value		368,063			351,496

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

	For the nine months ended September 30, 2016			For the nine months ended September 30, 2015
Beginning balance		351,496			357,550
Acquisition		3,133			—
Depreciation		(2,839	)		(2,899	)
Transfer		16,319			1,794
Foreign currencies translation adjustments		(46	)		63
Ending balance		368,063			356,508

(3) Fair value of investment properties is amounting to 383,673 million Won and 371,890 million Won as of September 30, 2016 and December 31, 2015, respectively. The fair value of investment property, based on the assessment that was independently performed by external appraisal agencies, is classified as level 3 on the fair value hierarchy as of September 30, 2016 and December 31, 2015.

(4) Rental fee earned from investment properties is amounting to 3,658 million Won and 4,071 million Won for the nine months ended September 30, 2016 and 2015, respectively.

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15. PREMISES AND EQUIPMENT

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

	September 30, 2016
	Land		Building			Properties for business use			Structures in leased office			Construction in progress		Structures			Total
Acquisition cost		1,478,038		844,485			989,591			436,223			3,015		20			3,751,372
Accumulated depreciation		—		(156,205	)		(804,950	)		(352,274	)		—		(17	)		(1,313,446	)
Net carrying value		1,478,038		688,280			184,641			83,949			3,015		3			2,437,926
	December 31, 2015
	Land		Building			Properties for business use			Structures in leased office			Construction in progress		Structures			Total
Acquisition cost		1,493,628		843,343			965,820			405,801			522		20			3,709,134
Accumulated depreciation		—		(139,326	)		(772,529	)		(326,057	)		—		(16	)		(1,237,928	)
Net carrying value		1,493,628		704,017			193,291			79,744			522		4			2,471,206

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

	For the nine months ended September 30, 2016
	Land			Building			Properties for business use			Structures in leased office			Construction in progress			Structures			Total
Beginning balance		1,493,628			704,017			193,291			79,744			522			4			2,471,206
Acquisition		—			11,386			52,390			16,307			2,575			—			82,658
Disposal		(30	)		—			(206	)		(1,583	)		(67	)		—			(1,886	)
Depreciation		—			(19,017	)		(61,353	)		(40,082	)		—			(1	)		(120,453	)
Reversal of impairment loss		—			—			7			—			—			—			7
Classified to assets held for sale		(4,368	)		(2,941	)		—			—			—			—			(7,309	)
Foreign currencies translation adjustments		(139	)		(163	)		(815	)		(965	)		(15	)		—			(2,097	)
Transfer		(11,198	)		(5,121	)		—			—			—			—			(16,319	)
Others		145			119			1,327			30,528			—			—			32,119
Ending balance		1,478,038			688,280			184,641			83,949			3,015			3			2,437,926

	For the nine months ended September 30, 2015
	Land			Building			Properties for business use			Structures in leased office			Construction in progress			Structures			Total
Beginning balance		1,514,698			706,524			209,588			70,185			102			5			2,501,102
Acquisition		2,628			16,643			43,444			25,904			496			—			89,115
Disposal		(10,648	)		(115	)		(630	)		(1,577	)		(79	)		—			(13,049	)
Depreciation		—			(18,545	)		(63,976	)		(28,536	)		—			—			(111,057	)
Classified to assets held for sale		(4,045	)		(3,224	)		—			—			—			—			(7,269	)
Foreign currencies translation adjustments		(744	)		(717	)		361			576			(1	)		(1	)		(526	)
Transfer		(10,272	)		8,478			—			—			—			—			(1,794	)
Others		—			(224	)		(237	)		10,552			(48	)		—			10,043
Ending balance		1,491,617			708,820			188,550			77,104			470			4			2,466,565

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16. INTANGIBLE ASSETS AND GOODWILL

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

	September 30, 2016
	Goodwill		Software			Industrial rights			Development cost			Others			Membership deposit			Total
Acquisition cost		102,823		172,539			654			216,143			646,379			28,209			1,166,747
Accumulated amortization		—		(143,667	)		(377	)		(155,056	)		(442,880	)		—			(741,980	)
Accumulated impairment losses		—		—			—			—			(88	)		(6,136	)		(6,224	)
Net carrying value		102,823		28,872			277			61,087			203,411			22,073			418,543
	December 31, 2015
	Goodwill		Software			Industrial rights			Development cost			Others			Membership deposit			Total
Acquisition cost		103,525		170,709			651			193,020			605,821			30,024			1,103,750
Accumulated amortization		—		(132,538	)		(307	)		(141,663	)		(400,714	)		—			(675,222	)
Accumulated impairment losses		—		—			—			—			(3,338	)		(5,384	)		(8,722	)
Net carrying value		103,525		38,171			344			51,357			201,769			24,640			419,806

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

	For the nine months ended September 30, 2016
	Goodwill			Software			Industrial rights			Development cost			Others			Membership deposit			Total
Beginning balance		103,525			38,171			344			51,357			201,769			24,640			419,806
Acquisition		—			2,029			4			23,104			41,244			1,902			68,283
Disposal		—			—			—			—			(23	)		(3,408	)		(3,431	)
Amortization		—			(11,328	)		(71	)		(13,373	)		(43,063	)		—			(67,835	)
Reversal of impairment loss		—			—			—			—			3,231			(923	)		2,308
Foreign currencies translation adjustments		(839	)		—			—			(1	)		(898	)		(115	)		(1,853	)
Others		137			—			—			—			1,151			(23	)		1,265
Ending balance		102,823			28,872			277			61,087			203,411			22,073			418,543

	For the nine months ended September 30, 2015
	Goodwill			Software			Industrial rights			Development cost			Others			Membership			Total
Beginning balance		107,541			47,821			328			55,337			60,807			23,894			295,728
Acquisition		—			5,000			27			7,958			184,603			—			197,588
Disposal		—			(189	)		—			(1,500	)		(12	)		—			(1,701	)
Amortization		—			(12,606	)		(59	)		(14,583	)		(40,283	)		—			(67,531	)
Impairment loss		—			—			—			—			(6	)		(118	)		(124	)
Foreign currencies translation adjustments		(8,102	)		1			—			2			(1,512	)		145			(9,466	)
Others		(202	)		—			—			—			—			1,056			854
Ending balance		99,237			40,027			296			47,214			203,597			24,977			415,348

- 48 -

17. ASSETS HELD FOR SALE

Assets held for sale recognized are 14,445 million Won and 17,904 million Won as of September 30, 2016 and December 31, 2015, respectively.

18. ASSETS SUBJECT TO LIEN AND ASSETS ACQUIRED THROUGH FORECLOSURES

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

		September 30, 2016
		Collateral given to	Amount		Reason for collateral
Loan and receivables	Due from banks in local currency	Samsung Securities and others		33,715	Deposits for Futures and Options Transaction and others
	Due from banks in foreign currencies	Korea Investment & Securities and others		270,231	Foreign margin deposit for future or option and others
Financial assets at FVTPL	Industrial and financial debt securities and others	Yuanta Securities and others		439,057	Substitute securities and others
	Korean treasury and government agencies bonds	Korea Securities Depository and others		1,768,365	Related to bonds sold under repurchase agreements (*)
AFS financial assets	Financial institutions debt securities and others	The BOK and others		3,403,148	Settlement risk and others
	Korean treasury and government agencies bonds	Korea Securities Depository		7,129	Related to bonds sold under repurchase agreements (*)
HTM financial assets	Korean treasury and government agencies bonds and others	The BOK and others		5,923,230	Settlement risk and others
Lands and buildings		Credit Counselling & Recovery Service and others		10,091	Leasehold rights and others
		Total		11,854,966
		December 31, 2015
		Collateral given to	Amount		Reason for collateral
Loan and receivables	Due from banks in local currency	Samsung Securities and others		30,438	Deposits for Futures and Options Transaction and others
	Due from banks in foreign currencies	Korea Investment & Securities and others		452,860	Foreign margin deposit for future or option and others
Financial assets at FVTPL	Industrial and financial debt securities and others	Yuanta Securities and others		220,897	Substitute securities and others
	Korean treasury and government agencies bonds	Banco Bilbao Vizcaya Argentaria and others		603,274	Related to bonds sold under repurchase agreements (*)
AFS financial assets	Financial institutions debt securities and others	The BOK and others		3,595,581	Settlement risk and others
	Korean treasury and government agencies bonds	Nomura Securities and others		139,340	Related to bonds sold under repurchase agreements (*)
HTM financial assets	Korean treasury and government agencies bonds and others	The BOK and others		4,657,667	Settlement risk and others
Lands and buildings		Credit Counselling & Recovery Service and others		6,468	Leasehold rights and others
		Total		9,706,525

(*) The Group enters into the repurchase agreements at predetermined price or original sale price added with certain rate of return after the disposal of securities. In this regards, the securities are provided as collaterals, and the purchasers are eligible to dispose or provide them as collateral. Therefore, as such securities have been transferred but have not been derecognized, the Group recognizes the relevant amount as liability (bond sold under repurchase agreements).

- 49 -

(2) The carrying amounts of buildings acquired through foreclosure are as follow (Unit: Korean Won in millions):

	September 30, 2016		December 31, 2015
Land		27		28
Buildings		208		596
Total		235		624

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

		September 30, 2016		December 31, 2015		Loaned to
Financial assets at FVTPL	Equity securities- listed stock		6,809		10,313	Samsung Securities Co., Ltd. and others
AFS financial assets	Korean treasury and government agencies bonds		560,814		720,010	Korea Securities Finance Corporation and others
Total			567,623		730,323

Securities loaned are lending of specific securities to borrowers who agree to return the same quantity of the same security at the end of lending period. As the Group does not derecognize these securities, there are no liabilities relates to Securities loaned.

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

Fair values of collaterals held can be disposed and re-subjected to lien regardless of defaults of counterparties as of September 30, 2016 and December 31, 2015 are as follows (Unit: Korean Won in millions):

	September 30, 2016
	Fair values of collaterals		Fair values of collaterals were disposed or re-subjected to lien
Securities		11,127,871		—
	December 31, 2015
	Fair values of collaterals		Fair values of collaterals were disposed or re-subjected to lien
Securities		7,661,656		—

19. OTHER ASSETS

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

	September 30, 2016		December 31, 2015
Prepaid expenses		190,621		124,080
Advance payments		1,811		1,008
Non-operative assets		235		624
Others		19,738		17,574
Total		212,405		143,286

- 50 -

20. FINANCIAL LIABILITY AT FVTPL

(1) Financial liabilities at FVTPL consist of as follows (Unit: Korean Won in millions):

	September 30, 2016		December 31, 2015
Financial liabilities held for trading		2,980,711		2,605,699
Financial liabilities designated at FVTPL		745,038		854,862
Total		3,725,749		3,460,561

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

	September 30, 2016		December 31, 2015
Deposits due to Customers:
Gold banking liabilities		21,651		24,872
Derivative liabilities		2,959,060		2,580,827
Total		2,980,711		2,605,699

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

	September 30, 2016		December 31, 2015
Equity linked securities index:
Equity-linked securities index in short  position		650,188		758,011
Debentures:
Debentures in local currency		94,850		96,851
Total		745,038		854,862

(4) Credit risk adjustments to financial liabilities designated at FVTPL are as follows (Unit: Korean Won in millions):

	For the nine months ended
	September 30, 2016			September 30, 2015
Financial liabilities designated at FVTPL subject to credit risk adjustments		745,038			866,669
Changes in fair value for credit risk adjustments		(841	)		(324	)
Accumulated changes of credit risk adjustments		(15,814	)		(14,775	)

In measuring derivative liabilities at fair value, credit risk adjustments reflect the Group’s own credit risk. The methodology to determine the adjustment incorporates the Group’s credit spread as observed through credit ratings.

(5) The differences between financial liabilities at FVTPL’s carrying amount and nominal amount at maturity are as follows (Unit: Korean Won in millions):

	September 30, 2016			December 31, 2015
Carrying amount		745,038			854,862
Nominal amount at maturity		905,212			1,086,365
Differences		(160,174	)		(231,503	)

- 51 -

21. DEPOSITS DUE TO CUSTOMERS

Details of deposits due to customers are as follows (Unit: Korean Won in millions):

	September 30, 2016			December 31, 2015
Deposits in local currency:
Deposits on demand		9,206,686			9,728,839
Time deposits		184,063,819			175,598,522
Mutual installment		38,108			40,888
Deposits on notes payables		890,828			687,579
Deposits on CMA		232,483			235,089
Certificate of deposits		3,802,876			2,435,087
Other deposits		1,326,495			1,304,348
Sub-total		199,561,295			190,030,352
Deposits in foreign currencies		20,930,400			19,129,214
Present value discount		(26,110	)		(17,740	)
Total		220,465,585			209,141,826

- 52 -

22. BORROWINGS AND DEBENTURES

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

	September 30, 2016
	Lenders	Interest rate (%)		Amount
Borrowings in local currency:
Borrowings from the BOK	The BOK		0.5 ~ 0.8		1,438,803
Borrowings from government funds	Small and Medium Business Corporation and others		0.0 ~ 3.5		1,518,763
Others	The Korea Development Bank and others		0.0 ~ 3.8		4,112,004
Sub-total					7,069,570
Borrowings in foreign currencies:
Borrowings in foreign currencies	The Export-Import Bank of Korea and others		0.0 ~ 7.8		7,402,474
Offshore borrowings in foreign currencies	Wells Fargo and others		0.2 ~ 1.3		31,208
Sub-total					7,433,682
Bills sold	Others		0.0 ~ 1.6		24,200
Call money	Banks and others		0.1 ~ 3.5		1,039,223
Bonds sold under repurchase agreements	Other financial institutions		0.6 ~ 4.5		1,654,321
Present value discount					(869	)
Total					17,220,127
	December 31, 2015
	Lenders	Interest rate (%)		Amount
Borrowings in local currency:
Borrowings from The BOK	The BOK		0.5 ~ 0.8		1,475,991
Borrowings from government funds	Small and Medium Business Corporation and others		0.0 ~ 3.5		1,535,953
Others	The Korea Development Bank and others		0.0 ~ 4.9		4,508,662
Sub-total					7,520,606
Borrowings in foreign currencies:
Borrowings in foreign currencies	The Export-Import Bank of Korea		0.0 ~ 4.6		9,733,694
Offshore borrowings in foreign currencies	Zuercher Kantonalbank and others		0.3 ~ 0.9		32,945
Sub-total					9,766,641
Bills sold	Others		0.0 ~ 2.6		37,501
Call money	Banks and others		0.0 ~ 5.2		2,039,051
Bonds sold under repurchase agreements	Other financial institutions		0.8 ~ 4.5		671,629
Present value discount					(1,511	)
Total					20,033,917

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

	September 30, 2016					December 31, 2015
	Interest rate (%)		Amount			Interest rate (%)		Amount
Face value of bond(*)
Ordinary bonds		1.1 ~ 11.8		17,978,274			0.2 ~ 12.0		16,868,054
Subordinated bonds		3.0 ~ 12.6		5,245,213			3.4 ~ 13.0		5,055,311
Other bonds		17.0		4,006			17.0		4,006
Sub-total				23,227,493					21,927,371
Discounts on bond				(34,323	)				(28,512	)
Total				23,193,170					21,898,859

(*) The debentures of 3,413,409 million Won and 3,148,073 million Won as of September 30, 2016 and December 31, 2015, respectively, which are being hedged against risks of changes in fair value.

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23. PROVISIONS

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

	September 30, 2016		December 31, 2015
Asset retirement obligation		58,708		39,121
Provision for guarantee (*1)		232,437		364,141
Provision for loan commitments		97,344		85,313
Provision for credit card points		15,417		5,445
Other provisions (*2)		16,938		22,581
Total		420,844		516,601

(*1) Provision for guarantee includes provision for financial guarantee of 66,075 million Won and 77,322 million Won as of September 30, 2016 and December 31, 2015, respectively.

(*2) Other provisions consist of provision for litigation, provision for loss recovery and others.

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

	For the nine months ended September 30, 2016
	Provision for guarantees			Provision for loan commitments			Provision for credit card points			Other provisions			Total
Beginning balance		364,141			85,313			5,445			22,581			477,480
Provisions provided		4,513			13,247			16,882			3,871			38,513
Provisions used		(81,410	)		(20	)		(6,950	)		(9,508	)		(97,888	)
Reversal of unused amount		(68,532	)		(1,153	)		—			—			(69,685	)
Transfer		—			—			40			—			40
Others		13,725			(43	)		—			(6	)		13,676
Ending balance		232,437			97,344			15,417			16,938			362,136
	For the nine months ended September 30, 2015
	Provision for guarantees			Provision for loan commitments			Provision for credit card points			Other provisions			Total
Beginning balance		509,320			90,449			5,548			56,959			662,276
Provisions provided		3,443			4,533			12,897			55,304			76,177
Provisions used and others		(22,196	)		69			(13,145	)		(84,850	)		(120,122	)
Reversal of unused amount		(87,227	)		(5,283	)		—			—			(92,510	)
Others		20,269			(45	)		—			(5	)		20,219
Ending balance		423,609			89,723			5,300			27,408			546,040

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

	For the nine months ended September 30, 2016			For the nine months ended September 30, 2015
Beginning balance		39,121			29,733
Provisions provided		1,437			1,124
Provisions used		(706	)		(711	)
Amortization of present value discount		347			296
Reversal of provision unused		—			(179	)
Increase in asset retirement expense and others		18,509			8,802
Ending balance		58,708			39,065

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24. NET DEFINED BENEFIT LIABILITY

The characteristics of the Group’s defined benefit plans characteristics are as follows:

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. The 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.

The Group is exposed to various risks through Defined Benefit Retirement Pension Plan, and the most significant risks are as follows:

Volatility of asset	The defined benefit obligation was estimated with an interest rate calculated based on the yield of high quality corporate bonds earnings. A deficit may occur if the rate of return of plan assets falls short of the interest rate.
Decrease in profitability of high quality corporate bonds	A decrease in profitability of high quality corporate bonds will be offset by some increase in the value of debt securities that the employee benefit plan owns but will bring an increase in the defined benefit liabilities.
Risk of inflation	Defined benefit obligations are related to inflation rate; the higher the inflation rate is, the higher the level of liabilities. Therefore, deficit occurs in the system if an inflation rate increases.

(1) The net defined benefit liability is as follows (Unit: Korean Won in millions):

	September 30, 2016			December 31, 2015
Defined benefit obligation		1,058,124			901,219
Fair value of plan assets		(988,032	)		(801,528	)
Net defined benefit liability		70,092			99,691

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

	For the nine months ended September 30, 2016			For the nine months ended September 30, 2015
Beginning balance		901,219			683,961
Current service cost		115,148			99,488
Interest cost		18,038			15,877
Remeasurements		63,649			64,145
Foreign currencies translation adjustments		(10	)		(5	)
Retirement benefit paid		(31,047	)		(19,910	)
Curtailment or settlement		(9,243	)		(8,231	)
Others		370			8
Ending balance		1,058,124			835,333

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

	For the nine months ended September 30, 2016			For the nine months ended September 30, 2015
Beginning balance		801,528			608,370
Interest income		18,571			16,317
Remeasurements		(5,945	)		(4,463	)
Employer’s contributions		218,250			170,715
Retirement benefit paid		(30,208	)		(17,991	)
Curtailment or settlement		(8,905	)		(8,239	)
Others		(5,259	)		(14,427	)
Ending balance		988,032			750,282

(4) Plan assets wholly consist of time deposits as of September 30, 2016 and December 31, 2015, respectively. Among plan assets, realized returns on plan assets amount to 12,626 million Won and 11,854 million Won for the nine months ended September 30, 2016 and 2015, respectively.

(5) Current service cost, net interest expense, past service cost, loss on the curtailment or settlement and remeasurements recognized in the consolidated statements of net income and total comprehensive income are as follows (Unit: Korean Won in millions):

	For the nine months ended September 30, 2016			For the nine months ended September 30, 2015
Current service cost		115,148			99,488
Net interest income		(533	)		(440	)
Loss(gain) on the curtailment or settlement		(338	)		8
Cost recognized in net income		114,277			99,056
Remeasurements		69,594			68,608
Cost recognized in total comprehensive income		183,871			167,664

Cost recognized in net income related to defined contribution plans are recognized 3,095 million Won and 2,431 million Won for the nine months ended September 30, 2016 and 2015, respectively.

(6) Key actuarial assumptions used in defined benefit liability assessment are as follows:

	September 30, 2016	December 31, 2015
Discount rate	2.14%	2.83%
Future wage growth rate	6.31%	6.35%
Mortality rate	Issued by Korea Insurance Development Institute	Issued by Korea Insurance Development Institute
Retirement rate	Experience rate for each employment classification	Experience rate for each employment classification

(7) The sensitivity to actuarial assumptions used in the assessment of defined benefit obligation is as follows (Unit: Korean Won in millions):

		Defined benefit obligation as of
		September 30, 2016			December 31, 2015
Discount rate	Increase by 1% point		(119,136	)		(101,026	)
	Decrease by 1% point		139,485			118,879
Future wage growth rate	Increase by 1% point		137,573			117,975
	Decrease by 1% point		(119,562	)		(101,900	)

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25. OTHER FINANCIAL LIABILITIES AND OTHER LIABILITIES

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

	September 30, 2016			December 31, 2015
Other financial liabilities:
Accounts payable		9,718,775			5,586,031
Accrued expenses		1,967,161			1,901,204
Borrowings from trust accounts		4,698,695			4,476,396
Agency business revenue		867,793			415,776
Foreign exchange payables		705,502			708,267
Domestic exchange payables		6,638,625			2,082,472
Other miscellaneous financial liabilities		2,130,113			1,795,256
Present value discount		(784	)		(1,196	)
Sub-total		26,725,880			16,964,206
Other liabilities:
Unearned income		172,899			171,649
Other miscellaneous liabilities		154,733			133,525
Sub-total		327,632			305,174
Total		27,053,512			17,269,380

26. DERIVATIVES

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

	September 30, 2016
			Assets				Liabilities
	Nominal Amount		Fair value Hedge		For trading		Fair value hedge		For trading
Interest rate:
Interest rate futures		1,332		—		—		—		—
Interest rate swaps		115,675,644		273,499		742,318		—		765,179
Long interest rate option		1,100,000		—		31,941		—		—
Short interest rate option		1,025,000		—		—		—		30,991
Currency:
Currency futures		550,858		—		—		—		—
Currency forward		59,462,814		—		1,125,308		—		1,073,106
Currency swaps		32,944,058		—		892,758		—		884,474
Long currency option		1,309,863		—		46,522		—		—
Short currency option		1,045,256		—		—		—		20,414
Stock:
Stock futures		277,355		—		—		—		—
Stock swaps		15,000		—		19		—		108
Long stock option		1,880,755		—		77,159		—		—
Short stock option		3,360,618		—		—		25,175		180,134
Others:
Other futures		566		—		—		—		—
Other swaps		21,593		—		4,446		—		3,709
Long other option		6,941		—		97		—		—
Short other option		91,999		—		—		—		945
Total		218,769,652		273,499		2,920,568		25,175		2,959,060

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	December 31, 2015
			Assets				Liabilities
	Nominal Amount		Fair value hedge		For trading		For trading
Interest rate:
Interest rate swap		111,633,234		180,378		923,712		959,347
Long interest rate option		881,679		—		13,961		—
Short interest rate option		1,086,679		—		—		15,164
Currency:
Currency futures		423,877		—		—		—
Currency forward		56,298,910		—		759,838		475,646
Currency swaps		27,070,835		—		617,777		949,921
Long currency option		1,657,911		—		63,498		—
Short currency option		1,366,459		—		—		13,530
Stock:
Stock futures		169,785		—		—		—
Stock swaps		10,000		—		—		6
Long stock option		682,358		2,750		444		—
Short stock option		2,410,815		—		—		155,386
Others:
Other futures		1,100		—		—		—
Other forwards		125		—		—		39
Other swaps		78,882		—		5,363		4,781
Long other option		41,097		—		5,904		—
Short other option		142,259		—		—		7,007
Total		203,956,005		183,128		2,390,497		2,580,827

Derivatives held for trading purpose are classified as financial assets or 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 20).

(2) Gains or losses from valuation of financial instruments under hedge accounting are as follows (Unit: Korean Won in millions):

	For the nine months ended September 30
	2016			2015
Losses from hedged items		(51,661	)		(79,910	)
Gains from hedging instruments		45,945			92,087

27. DEFERRED DAY 1 PROFIT OR LOSS

Changes in details of deferred day 1 profits or losses are as follows (Unit: Korean Won in millions):

	For the nine months ended September 30
	2016			2015
Beginning balance		28,008			13,499
New transaction		1,337			24,055
Amounts recognized in profits or losses		(13,498	)		(9,932	)
Ending balance		15,847			27,622

In case some variables to measure fair values of financial instruments were not observable or available in the market, valuation techniques were utilized to evaluate such financial instruments. Those financial instruments were recorded at the fair value produced by the valuation techniques as at the time of acquisition, even though there were differences noted between the transaction price and the fair value. The table above presents the difference yet to be realized as profit or losses.

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28. CAPITAL STOCK AND CAPITAL SURPLUS

(1) The number of authorized shares and others are as follows:

	September 30, 2016		December 31, 2015
Authorized shares of common stock		5,000,000,000 Shares		5,000,000,000 Shares
Par value		5,000 Won		5,000 Won
Issued shares of common stock		676,000,000 Shares		676,000,000 Shares
Capital stock		3,381,392 million Won		3,381,392 million Won

Due to the retirement of repurchased stocks of 278,371 shares occurred during the year ended December 31, 2015, the amount of capital stock differs from the nominal amount of issued stocks.

(2) There is no change to be disclosed in numbers of issued shares of common stock for the nine months ended September 30, 2016 and 2015.

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

	September 30, 2016		December 31, 2015
Capital in excess of par value		269,533		269,533
Other capital surplus		24,727		24,726
Total		294,260		294,259

29. HYBRID SECURITIES

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

	Issuance date		Maturity		Annual interest rate (%)		September 30, 2016			December 31, 2015
Securities in local currency		2008.06.20		2038.06.20		7.7		255,000			255,000
		2011.11.22		2041.11.22		5.9		310,000			310,000
		2012.03.08		2042.03.08		5.8		190,000			190,000
		2013.04.25		2043.04.25		4.4		500,000			500,000
		2013.11.13		2043.11.13		5.7		200,000			200,000
		2014.12.12		2044.12.12		5.2		160,000			160,000
		2015.06.03		2045.06.03		4.4		240,000			240,000
Sub-total								1,855,000			1,855,000
Securities in foreign currencies		2007.05.02		2037.05.02		6.2		930,900			930,900
		2015.06.10		2045.06.10		5.0		559,650			559,650
		2016.09.27		2046.09.27		4.5		553,450			—
Sub-total								2,044,000			1,490,550
Issuance cost								(15,093	)		(11,548	)
Total								3,883,907			3,334,002

With respect to the hybrid securities issued, the contractual agreements allow the Group to indefinitely extend the maturity date and defer the payment of interest. In case the Group makes a resolution not to pay dividends on common stock, it is exonerated from interest payment on the hybrid securities.

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30. OTHER EQUITY

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

	September 30, 2016			December 31, 2015
Accumulated other comprehensive income:
Gain on valuation of AFS financial assets		426,339			374,685
Share of other comprehensive income of joint ventures and associates		3,109			6,074
Loss on foreign currencies translation of foreign operations		(145,464	)		(70,789	)
Remeasurement of the net defined benefit liability		(250,362	)		(197,579	)
Cash flow hedges		—			(10,371	)
Sub-total		33,622			102,020
Treasury shares		(34,113	)		(34,113	)
Other capital adjustments		(1,615,210	)		(1,615,210	)
Total		(1,615,701	)		(1,547,303	)

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

	For the nine months ended September 30, 2016
	Beginning balance			Increase (decrease)(*)			Reclassification adjustments(*)			Income tax effect			Ending balance
Gain (loss) on valuation of available-for-sale financial assets		374,685			101,744			(43,234	)		(6,856	)		426,339
Share of other comprehensive income (loss) of joint ventures and associates		6,074			1,242			(3,906	)		(301	)		3,109
Gain (loss) on foreign currency translation of foreign operations		(70,789	)		(98,679	)		—			24,004			(145,464	)
Remeasurement of the net defined benefit liability		(197,579	)		(69,593	)		—			16,810			(250,362	)
Cash flow hedges		(10,371	)		10,371			—			—			—
Total		102,020			(54,915	)		(47,140	)		33,657			33,622

	For the nine months ended September 30, 2015
	Beginning balance			Increase (decrease)(*)			Reclassification adjustments (*)			Income tax effect			Ending Balance
Gain (loss) on valuation of available-for-sale financial assets		300,994			104,298			(19,661	)		(16,421	)		369,210
Share of other comprehensive income (loss) of joint ventures and associates		2,779			7,087			—			(1,762	)		8,104
Gain (loss) on foreign currency translation of foreign operations		(107,721	)		62,070			—			(13,834	)		(59,485	)
Remeasurement of the net defined benefit liability		(119,375	)		(68,614	)		—			16,588			(171,401	)
Cash flow hedges		(10,371	)		—			—			—			(10,371	)
Total		66,306			104,841			(19,661	)		(15,429	)		136,057

(*) For the change in gain (loss) on valuation of AFS financial assets, increase or decrease represents change due to the valuation during the period, and “reclassification adjustments” explains disposal or recognition of impairment losses on AFS financial assets.

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31. RETAINED EARNINGS

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

		September 30, 2016		December 31, 2015
Legal reserve	Legal reserve		1,622,754		1,528,754
	Other legal reserve		44,633		43,132
	Sub-total		1,667,387		1,571,886
Voluntary reserve	Business rationalization reserve		8,000		8,000
	Reserve for financial structure improvement		235,400		235,400
	Additional reserve		7,073,104		7,249,104
	Regulatory reserve for credit loss		2,255,252		1,756,142
	Revaluation reserve		753,908		760,366
	Other voluntary reserve		11,700		11,700
	Sub-total		10,337,364		10,020,712
Retained earnings before appropriation			2,509,463		2,133,524
	Total		14,514,214		13,726,122

i. Legal reserve

In accordance with the Banking Act, legal reserve are appropriated at least one tenth of the earnings after tax on every dividend declaration, not exceeding the paid in capital. This reserve may not be used other than for offsetting a deficit or transferring to capital.

ii. Other legal reserve

Other legal reserves were appropriated in the branches located in Japan, Vietnam and Bangladesh according to the banking laws of Japan, Vietnam and Bangladesh, and may be used to offset any deficit incurred in those branches.

iii. Business rationalization reserve

Pursuant to the Restriction of Special Taxation Act, the Group was previously required to appropriate, as a reserve for business rationalization, amounts equal to tax reductions arising from tax exemptions and tax credits up to December 31, 2001. The requirement was no longer effective from 2002.

iv. Reserve for financial structure improvement

From 2002 to 2014, the Finance Supervisory Services recommended banks in Korea to appropriate at least 10 percent of net income after accumulated deficit for financial structure improvement, until tangible common equity ratio equals 5.5 percent. But this reserve is not available for payment of cash dividends; however, it can be used to reduce a deficit or be transferred to capital. The reserve and appropriation is an Autonomous judgment matter of the Group since 2015.

v. Additional reserve and other voluntary reserve

Additional reserve and other voluntary reserve were appropriated for capital adequacy and other management purpose.

vi. Regulatory reserve for credit loss

In accordance with Article 29 of the Regulation on Supervision of Banking Business (“RSBB”), if provisions for credit loss under K-IFRS for the accounting purpose are lower than provisions under RSBB, the Group discloses such shortfall amount as regulatory reserve for credit loss.

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vii. Revaluation reserve

Revaluation reserve is the amount of limited dividends set by the board of directors to be the recognized as complementary capital when the gain or loss occurred in the property revaluation by adopting K-IFRS.

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

	For the nine months ended September 30
	2016			2015
Beginning balance		13,726,122			14,165,358
Net attributable to owners		1,105,915			840,150
Dividends on common stock		(168,317	)		(504,952	)
Dividends on hybrid securities		(149,506	)		(134,517	)
Appreciation of other capital surplus		—			(806,640	)
Ending balance		14,514,214			13,559,399

32. REGULATORY RESERVE FOR CREDIT LOSS

In accordance with Paragraph 1 and 2 of Article 29 of the Regulation on Supervision of Banking Business (“RSBB”), if the estimated provisions for credit loss under K-IFRS for the accounting purpose are lower than those in accordance with the provisions under the RSBB, the Group shall disclose the difference as the planned regulatory reserve for credit loss.

(1) Balance of the planned regulatory reserve for credit loss is as follows (Unit: Korean Won in millions):

	September 30, 2016			December 31, 2015
Beginning balance		2,255,252			1,756,142
Planned provision (reversal) of regulatory reserve for credit loss		(480	)		499,110
Ending balance		2,254,772			2,255,252

(2) Planned reserves provided, adjusted net income after the planned reserves provided and adjusted earnings per share after the planned reserves provided are as follows (Unit: Korean Won in millions, except for earnings per share amount):

	2016						2015
	Three months ended September 30			Nine months ended September 30			Three months ended September 30			Nine months ended September 30
Net income		359,392			1,117,179			325,075			853,894
Provision (reversal) of regulatory reserve for credit loss		(13,306	)		(480	)		278,045			402,807
Adjusted net income after the provision of regulatory reserve		372,698			1,117,659			47,030			451,087
Adjusted EPS after the provision of regulatory reserve(Unit: Korean Won)		481			1,439			(9	)		470

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33. DIVIDENDS

At the shareholders’ meeting on March 25, 2016, dividend payment for the year ended December 31, 2015 amounting to 168,317 million Won (250 Won per share) was approved. The Group paid it during the nine months ended September 30, 2016.

34. NET INTEREST INCOME

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

	2016				2015
	Three months ended September 30		Nine months ended September 30		Three months ended September 30		Nine months ended September 30
Financial assets at FVTPL		14,168		43,852		14,833		48,122
AFS financial assets		84,641		261,181		99,125		295,449
HTM financial assets		88,245		277,737		107,720		317,183
Loans and receivables:
Interest on due from banks		16,955		50,832		19,787		66,681
Interest on loans		1,895,734		5,739,685		1,904,618		5,777,876
Interest of other receivables		9,182		29,200		11,689		34,938
Sub-total		1,921,871		5,819,717		1,936,094		5,879,495
Total		2,108,925		6,402,487		2,157,772		6,540,249

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

	2016				2015
	Three months ended September 30		Nine months ended September 30		Three months ended September 30		Nine months ended September 30
Interest on deposits due to customers		618,854		1,945,407		703,791		2,219,794
Interest on borrowings		51,616		161,748		51,807		160,632
Interest on debentures		154,735		464,792		172,738		545,959
Other interest expense		27,278		85,340		29,248		96,184
Total		852,483		2,657,287		957,584		3,022,569

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35. NET FEES AND COMMISSIONS INCOME

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

	2016				2015
	Three months ended September 30		Nine months ended September 30		Three months ended September 30		Nine months ended September 30
Fees and commissions received (*)		163,273		496,737		167,720		508,277
Fees and commissions received for provision of guarantee		15,982		50,145		20,530		60,461
Fees and commissions received on project financing		4,434		17,923		7,479		12,137
Fees and commissions received on Credit card		246,363		699,283		219,190		617,480
Fees and commissions received on securities		20,515		53,998		18,258		51,563
Other fees and commissions received		31,435		70,746		11,336		49,827
Total		482,002		1,388,832		444,513		1,299,745

(*) Fees and commissions received include agency commission, fee income from electronic finance, fee income related to loan, fees for import letter of credit dealing, commission received on foreign exchange and others.

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

	2016				2015
	Three months ended September 30		Nine months ended September 30		Three months ended September 30		Nine months ended September 30
Fees paid		38,632		119,046		28,208		98,860
Credit card commission		201,206		557,657		168,945		453,544
Brokerage commission		97		531		63		338
Others		560		2,085		604		1,852
Total		240,495		679,319		197,820		554,594

36. DIVIDEND INCOME

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

	2016				2015
	Three months ended September 30		Nine months ended September 30		Three months ended September 30		Nine months ended September 30
Dividend from financial assets at FVTPL		90		841		69		914
Dividend from AFS financial assets		16,791		136,439		28,092		90,059
Total		16,881		137,280		28,161		90,973

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37. GAINS (LOSSES) ON FINANCIAL ASSETS AT FVTPL

(1) Details of gains or losses related to financial assets at FVTPL are as follows (Unit: Korean Won in millions):

	2016						2015
	Three months ended September 30			Nine months ended September 30			Three months ended September 30		Nine months ended September 30
Gains (losses) on financial assets held for trading		(10,729	)		370			15,307		54,019
Gains (losses) on financial instruments designated at FVTPL		(91,633	)		(44,136	)		106,300		97,622
Total		(102,362	)		(43,766	)		121,607		151,641

(2) Gains (losses) on financial assets held for trading are as follows (Unit: Korean Won in millions):

			2016						2015
			Three months ended September 30			Nine months ended September 30			Three months ended September 30			Nine months ended September 30
Financial Assets at	Securities	Gain on valuation		166			17,180			5,424			13,674
FVTPL		Gain on disposals		3,786			21,772			5,425			26,396
		Loss on valuation		(1,813	)		(5,164	)		2,433			(7,578	)
		Loss on disposals		(2,527	)		(7,507	)		(10,908	)		(17,453	)
		Sub-total		(388	)		26,281			2,374			15,039
	Other financial assets	Gain on valuation		1,717			12,085			2,894			7,280
		Gain on disposals		707			2,248			126			326
		Loss on valuation		(2,102	)		(12,487	)		(2,776	)		(7,220	)
		Loss on disposals		(275	)		(1,590	)		(151	)		(205	)
		Sub-total		47			256			93			181
		Total		(341	)		26,537			2,467			15,220
Derivatives (for trading)	Interest rates derivatives	Gain on transactions and valuation		220,952			1,059,261			375,958			950,824
		Loss on transactions and valuation		(187,315	)		(1,084,307	)		(404,105	)		(997,236	)
		Sub-total		33,637			(25,046	)		(28,147	)		(46,412	)
	Currencies derivatives	Gain on transactions and valuation		2,554,939			5,300,990			2,439,638			3,930,473
		Loss on transactions and valuation		(2,688,639	)		(5,320,934	)		(2,283,811	)		(3,736,594	)
		Sub-total		(133,700	)		(19,944	)		155,827			193,879
	Equity derivatives	Gain on transactions and valuation		109,869			180,014			37,978			63,269
		Loss on transactions and valuation		(19,766	)		(156,588	)		(152,436	)		(170,865	)
		Sub-total		90,103			23,426			(114,458	)		(107,596	)
	Other derivatives	Gain on transactions and valuation		11,522			30,166			17,257			41,899
		Loss on transactions and valuation		(11,950	)		(34,769	)		(17,639	)		(42,971	)
		Sub-total		(428	)		(4,603	)		(382	)		(1,072	)
		Total		(10,388	)		(26,167	)		12,840			38,799
	Total			(10,729	)		370			15,307			54,019

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(3) Details of gains or losses on financial instruments designated at FVTPL are as follows (Unit: Korean Won in millions):

	2016						2015
	Three months ended September 30			Nine months ended September 30			Three months ended September 30			Nine months ended September 30
Gain (loss) on equity-linked securities
Loss on disposals of equity-linked securities		(12,698	)		(19,851	)		(8,485	)		(18,880	)
Gain (loss) on valuation of equity-linked securities		(79,634	)		(26,641	)		114,739			115,848
Sub-total		(92,332	)		(46,492	)		106,254			96,968
Gain (loss) on other securities:
Loss on disposals of other securities		—			—			—			(62	)
Gain (loss) on valuation of other securities		(35	)		355			156			885
Sub-total		(35	)		355			156			823
Gain (loss) on other financial instruments:
Gain (loss) on valuation of other financial instruments		734			2,001			(110	)		(169	)
Sub-total		734			2,001			(110	)		(169	)
Total		(91,633	)		(44,136	)		106,300			97,622

38. GAINS (LOSSES) ON AFS FINANCIAL ASSETS

Gains (losses) on AFS financial are as follows (Unit: Korean Won in millions):

	2016						2015
	Three months ended September 30			Nine months ended September 30			Three months ended September 30			Nine months ended September 30
Gains on redemption of securities		—			611			18			1,060
Gains on transaction of securities		12,204			49,105			17,528			62,176
Impairment losses on securities		(8,315	)		(16,944	)		(37,437	)		(107,882	)
Total		3,889			32,772			(19,891	)		(44,646	)

39. IMPAIRMENT LOSSES DUE TO CREDIT LOSS

Impairment losses on loans and receivables, guarantees and loan commitment recognized due to credit loss are as follows (Unit: Korean Won in millions):

	2016						2015
	Three months ended September 30			Nine months ended September 30			Three months ended September 30			Nine months ended September 30
Impairment losses due to credit loss		(218,210	)		(722,768	)		(220,405	)		(1,010,225	)
Reversal of provision on (provision provided for) guarantee		(11,635	)		64,019			(16,227	)		83,784
Reversal of provision on (provision provided for) loan commitment		(10,254	)		(12,094	)		1,998			750
Total		(240,099	)		(670,843	)		(234,634	)		(925,691	)

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40. OTHER NET OPERATING INCOMES (EXPENSES)

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

			2016				2015
			Three months ended September 30		Nine months ended September 30		Three months ended September 30		Nine months ended September 30
Employee benefits	Short term employee benefits	Salaries		319,946		954,288		314,087		923,825
		Employee benefits		97,737		281,718		93,242		276,016
	Retirement benefit service costs			39,538		117,372		33,872		101,487
	Termination			359		93,150		474		64,178
	Sub-Total			457,580		1,446,528		441,675		1,365,506
Depreciation and amortization				58,697		188,288		57,894		178,588
Other administ-rative expenses	Rent			77,103		233,016		78,554		218,558
	Taxes and dues			23,612		86,297		22,016		83,599
	Service charges			59,196		174,809		57,521		166,822
	Computer and IT related			17,695		59,511		24,692		70,283
	Telephone and communication			15,708		45,697		14,841		43,957
	Operating promotion			11,755		33,752		11,173		32,595
	Advertising			12,680		46,959		8,887		30,606
	Printing			2,041		7,054		2,330		7,883
	Traveling			2,690		7,723		2,130		6,902
	Supplies			1,507		4,649		1,624		4,898
	Insurance premium			2,001		5,600		1,856		5,384
	Reimbursement			5,528		14,564		6,820		14,548
	Maintenance			3,928		11,397		3,755		10,819
	Water, light, and heating			4,123		11,563		4,119		11,981
	Vehicle maintenance			2,526		7,219		2,711		7,632
	Others			8,860		27,156		7,345		25,093
	Sub-total			250,953		776,966		250,374		741,560
	Total			767,230		2,411,782		749,943		2,285,654

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

	2016					2015
	Three months ended September 30			Nine months ended September 30		Three months ended September 30			Nine months ended September 30
Gains on transaction of foreign exchange		942,888			3,578,188		1,014,184			2,484,281
Gains on disposal of loans and receivables		28,073			201,538		35,038			182,622
Gains on transactions of derivatives		(33,782	)		77,723		82,132			108,091
Gains on fair value hedged items		12,489			30,602		(5,123	)		19,952
Others (*)		35,001			94,926		80,151			140,014
Total		984,669			3,982,977		1,206,382			2,934,960

(*) Other income includes such incomes amounting to 69,920 million Won and 125,775 million Won for the nine months ended September 30, 2016 and 2015, respectively, that the Group recognized for it is to receive from other creditor financial institutions in accordance with the creditor financial institutions committee agreement.

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

	2016					2015
	Three months ended September 30			Nine months ended September 30		Three months ended September 30			Nine months ended September 30
Losses on transaction of foreign exchange		803,365			3,395,558		1,126,125			2,529,751
KDIC deposit insurance fees		75,451			219,952		66,604			196,845
Contribution to miscellaneous funds		71,656			222,599		87,638			256,152
Losses on disposal of loans and receivables		2,481			2,486		3,801			3,814
Losses related to derivatives		12,764			31,778		(5,733	)		16,004
Losses on fair value hedged items		(36,437	)		82,263		73,637			99,862
Others (*)		24,299			137,494		50,410			113,413
Total		953,579			4,092,130		1,402,482			3,215,841

(*) Other expense includes such expenses amounting to 98,023 million Won and 38,394 million Won for the nine months ended September 30, 2016 and 2015, respectively, that the Group recognized for it is to carry out a payment to other creditor financial institutions in accordance with the creditor financial institutions committee agreement.

41. OTHER NON-OPERATING INCOMES (EXPENSES)

(1) Details of gain or loss on valuation of investments in joint ventures and associates are as follows (Unit: Korean Won in millions):

	2016						2015
	Three months ended September 30			Nine months ended September 30			Three months ended September 30			Nine months ended September 30
Gain on valuation		2,989			11,261			11,627			36,956
Loss on valuation		(12,836	)		(28,107	)		(23,476	)		(46,485	)
Impairment loss		3,472			(1,173	)		5,765			(50,782	)
Total		(6,375	)		(18,019	)		(6,084	)		(60,311	)

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

	2016						2015
	Three months ended September 30			Nine months ended September 30			Three months ended September 30			Nine months ended September 30
Other non-operating incomes		26,915			88,884			24,444			252,355
Other non-operating expenses		(12,383	)		(100,690	)		(12,138	)		(70,740	)
Total		14,532			(11,806	)		12,306			181,615

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(3) Other non-operating incomes recognized are as follows (Unit: Korean Won in millions):

	2016				2015
	Three months ended September 30		Nine months ended September 30		Three months ended September 30		Nine months ended September 30
Rental fee income		1,460		5,193		1,741		6,251
Gains on disposal of investments in joint ventures and associates		51		1,250		8,430		60,896
Gains on disposal of premises and equipment, intangible assets and other assets		1,178		1,525		23		6,790
Reversal of impairment loss of premises and equipment, intangible assets and other assets		1,126		3,711		10		373
Others(*)		23,100		77,205		14,240		178,045
Total		26,915		88,884		24,444		252,355

(*) Other income includes such incomes amounting to 132,784 million Won for the nine months ended September 30, 2015 that the Group received in accordance with the final irrevocable judgment for the payment of commitment (Note 44).

(4) Other non-operating expenses recognized are as follows (Unit: Korean Won in millions):

	2016				2015
	Three months ended September 30		Nine months ended September 30		Three months ended September 30		Nine months ended September 30
Depreciation on investment properties		979		2,839		951		2,899
Interest expense of rent leasehold deposits		121		375		152		545
Losses on disposal of investment in joint ventures and associates		—		15,060		10		10
Losses on disposal of premises and equipment, intangible assets and other assets		724		6,611		430		1,812
Impairment losses of premises and equipment, intangible assets and other assets		1,060		1,403		178		493
Donation		2,405		36,322		3,263		32,206
Others		7,094		38,080		7,154		32,775
Total		12,383		100,690		12,138		70,740

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42. INCOME TAX EXPENSE

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

	For the nine months ended September 30
	2016			2015
Current tax expense
Current tax expense in respect of the current period		164,644			128,631
Adjustments recognized in the current period in relation to the current tax of prior periods		(22,132	)		(28,018	)
Sub-total		142,512			100,613
Deferred tax expense
Deferred tax expense relating to the origination and reversal of temporary differences		65,965			152,155
Deferred tax charged directly to equity		33,740			(16,785	)
Sub-total		99,705			135,370
Income tax expense		242,217			235,983

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

	For the nine months ended September 30
	2016			2015
Net income before income tax expense		1,359,396			1,089,877
Tax calculated at statutory tax rate (*)		328,512			263,288
Adjustments
Effect of income that is exempt from taxation		(59,093	)		(39,351	)
Effect of expense not deductible in determining taxable profit		10,761			25,409
Adjustments recognized in the current period in relation to the current tax of prior periods		(22,132	)		(28,018	)
Others		(15,831	)		14,655
Sub-total		(86,295	)		(27,305	)
Income tax expense		242,217			235,983
Effective tax rate		17.8	%		21.7	%

(*) Applicable income tax rate; 1) 11% for below 200 million Won, 2) 22% for from 200 million Won to 20 billion Won, 3) 24.2% for above 20 billion Won.

(3) Deferred tax charged direct to equity is as follows (Unit: Korean Won in millions):

	September 30, 2016			December 31, 2015
Loss on valuation of AFS financial assets		(119,152	)		(112,495	)
Share of other comprehensive income of joint ventures and associates		(688	)		(387	)
Foreign currency translation of foreign operations		46,810			22,923
Remeasurements of the net defined benefit liability		79,385			62,575
Total		6,355			(27,384	)

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43. 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 and number of shares):

	2016						2015
	Three months ended September 30			Nine months ended September 30			Three months ended September 30			Nine months ended September 30
Net income attributable to common shareholders		355,649			1,105,915			323,293			840,150
Dividends on hybrid securities		(49,270	)		(149,506	)		(52,820	)		(134,517	)
Net income attributable to common shareholders		306,379			956,409			270,473			705,633
Weighted average number of common shares outstanding		673			673			673			673
Basic earnings per share		455			1,421			402			1,048

Diluted EPS equals to basic EPS for there is no dilution effect for the nine months ended September 30, 2016 and 2015.

44. CONTINGENT LIABILITIES AND COMMITMENTS

(1) Details of guarantees are as follow (Unit: Korean Won in millions):

	September 30, 2016		December 31, 2015
Confirmed guarantees
Guarantee for loans		84,931		108,176
Acceptances		541,344		618,365
Letters of guarantees		99,476		100,084
Other confirmed guarantees		7,162,594		8,242,622
Total		7,888,345		9,069,247
Unconfirmed guarantees
Local letter of credit		355,535		422,812
Letter of credit		3,348,651		4,258,672
Other unconfirmed guarantees		905,209		1,949,571
Total		4,609,395		6,631,055
CP purchase commitments and others		1,420,731		1,615,141

(2) Details of loan commitments and others are as follow (Unit: Korean Won in millions):

	September 30, 2016		December 31, 2015
Loan commitments		80,635,846		88,211,580
Other commitments		4,865,304		5,371,320

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(3) Litigation case

1) The Group had filed and faced lawsuits as follows (Unit: Korean Won in millions except for number of cases):

	September 30, 2016				December 31, 2015
	As plaintiff		As defendant		As plaintiff		As defendant
Number of cases		87 cases		203 cases		130 cases		269 cases
Amount of litigation		320,820		234,700		350,899		190,219
Allowance for litigations				4,411				4,872

2) As of September 30, 2016, the Group (Woori Bank), along with other 13 financial institutions including Seoul Guarantee Insurance, has filed a lawsuit against Samsung Group and its associates as defendant in respect of the claim of return of guaranteed fund which was related to the filing of court administration of Renault Samsung Motors. With respect to the lawsuit, on January 29, 2015, the supreme court of Korea made final judgment that the plaintiff should pay the guaranteed fund to the Group and other financial institutions. The Group recognized 132,784 million Won, as gain for the year ended December 31, 2015, in accordance with K-IFRS 1037 Provisions, Contingent liabilities and Contingent assets.

(4) Others

The Group operates Korean Won currency settlement service as for commercial trade settlements between Korea and Iran. In accordance with the submission request of information from U.S. prosecutors (U.S. Federal Prosecutors and Prosecutors of the New York State), the Group is currently performing its own internal investigation to confirm if the Group is meeting the requirements on sanction of U.S. Government in respect of its service operation. As of September 30, 2016, the Group believes that it cannot make reasonable estimation due to possible results from such investigation.

45. RELATED PARTY TRANSACTIONS

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

(1) The related parties of the Group as of September 30, 2016 are as follows:

	Related parties
Controlling party (Government related entity)	KDIC
Joint ventures	Woori Renaissance Holdings
Associates	Kumho Tires Co., Inc., Woori Blackstone Korea Opportunity No.1 Private Equity Fund, Korea Woori Service Networks Co., Ltd., Credit Bureau Co., Ltd., Korea Finance Security Co., Ltd., Chin Hung International Inc., Poonglim Industrial Co., Ltd., STX Engine Co., Ltd., Samho International Co., Ltd., Force TEC Co., Ltd., STX Corporation, Osung LST Co., Ltd., Woori Columbus 1st Private Equity Fund, Others(Dongwoo C & C Co., Ltd. and other 13 associates)

- 72 -

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

Related party		A title of account	September 30, 2016			December 31, 2015
Controlling party (Government related entity)	KDIC	Loans		4			30
		Other assets		270,055			510,193
		Deposits		1,448,649			930,231
		Other liabilities		11,323			9,812
Joint ventures	Woori Renaissance Holdings	Other assets		—			2,416
Associates	Kumho Tires Co., Ltd.	Loans		355,389			280,333
		Allowance for credit loss		(700	)		(553	)
		Deposits		30,150			67,815
		Other liabilities		64			116
	Woori Blackstone Korea Opportunity No.1 Private Equity Fund	Other assets Other liabilities		61 934			175 934
	Woori Service Networks Co., Ltd.	Loans		24			27
		Deposits		2,148			3,821
		Other liabilities		381			381
	Korea Credit Bureau Co., Ltd.	Loans		1			7
		Deposits		8,016			9,038
		Other liabilities		89			54
	Korea Finance Security Co., Ltd.	Loans		60			51
		Deposits		1,386			1,468
		Other liabilities		4			7
	United PF 1st Corporate Financial Stability (*1)	Deposits		—			20
	Chin Hung International Inc.	Loans		4,229			5,499
		Allowance for credit loss		(3,804	)		(4,768	)
		Deposits		9,588			1,378
		Other liabilities		368			223
	Poonglim Industrial Co., Ltd.	Loans		—			1,557
		Allowance for credit loss		—			(1,557	)
		Deposits		1,940			7,906
		Other liabilities		—			5
	STX Engine Co., Ltd.	Loans		108,706			120,706
		Allowance for credit loss		(62,170	)		(25,665	)
		Deposits		16,679			5,167
		Other liabilities		6,282			608
	Samho International Co., Ltd.	Loans		38,213			43,484
		Allowance for credit loss		(5,338	)		(5,883	)
		Deposits		78,690			96,281
		Other liabilities		998			990
	Force TEC Co., Ltd.	Loans		4			28,562
		Allowance for credit loss		(4	)		(6,252	)
		Deposits		—			355
		Other liabilities		—			1,207
	Hana Engineering & Construction Co., Ltd. (*2)	Loans		—			71
		Allowance for credit loss		—			(71	)
		Deposits		—			38

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Related party		A title of account	September 30, 2016			December 31, 2015
Associates	STX Corporation	Loans		126,623			151,829
		Allowance for credit loss		(80,795	)		(19,186	)
		Deposits		10,265			13,643
		Other liabilities		2,081			221
	Osung LST Co., Ltd.(*3)	Loans		—			5,639
		Allowance for credit loss		—			(338	)
		Deposits		—			983
		Other liabilities		—			2
	Ilyang Construction Co., Ltd. (*2)	Loans		—			838
		Allowance for credit loss		—			(215	)
	Woori Columbus 1st Private Equity Fund	Other assets		—			546
	Others (*4)	Loans		1,089			—
		Allowance for credit loss		(483	)		—
		Other assets		15			—
		Deposits		3,645			—
		Other liabilities		59			—

(*1) As the Group lost significant influence over United PF 1st Corporate Financial Stability during nine months ended September 30, 2016, it was excluded from the related parties.

(*2) As the Group sold shares of Hana Engineering & Construction Co., Ltd and Ilyang Construction Co., Ltd. during nine months ended September 30, 2016, they were excluded from the associates.

(*3) Due to transfers to assets held for sale occurred during the nine months ended September 30, 2016, it was excluded from the investments in associates.

(*4) There are Kyesan Engineering Co., Ltd., Good Software Lab Co., Ltd., Dongwoo C & C Co., Ltd., Heungjiwon Co., Ltd., Saman Corporation, Gachi Staff Co., Ltd., Deokwon Food Co., Ltd., QTS Shipping Co., Ltd., SJCO Co., Ltd. and Woori Growth Partnerships New Technology Private Equity Fund.

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

			For the nine months ended September 30
Related party		A title of account	2016		2015
Controlling party (Government related entity)	KDIC	Interest income		9,450		17,671
		Interest expenses		14,123		18,383
Associates	Kumho Tires Co., Ltd.	Interest income		1,941		2,004
		Fees income		6		5
		Interest expenses		53		171
		Impairment losses due to credit loss (reversal of allowance for credit loss)		147		(1,975)
	Woori Blackstone Korea Opportunity No.1 Private Equity Fund	Fees income		155		1,262
	Woori Service Networks Co., Ltd.	Other income		22		21
		Interest expenses		38		63
		Fees expenses		747		621
		Other expenses		165		192
		Impairment losses due to credit loss		—		2
	Korea Credit Bureau Co., Ltd.	Interest expenses		108		54
		Fees expenses		1,313		1,258

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			For the nine months ended September 30
Related party		A title of account	2016		2015
Associates	Korea Finance Security Co., Ltd.	Interest expenses		7		30
		Fees expenses		82		69
		Impairment losses due to credit loss		—		3
	Chin Hung International Inc.	Interest income		190		734
		Fees income		1		1
		Interest expenses		20		29
		Reversal of allowance for credit loss		964		800
	Poonglim Industrial Co., Ltd.	Interest expenses		2		9
		Reversal of allowance for credit loss		1,557		284
	STX Engine Co., Ltd.	Interest income		1,013		1,022
		Fees income		20		27
		Interest expenses		65		35
		Impairment losses due to credit loss		36,505		37,203
	Samho International Co., Ltd.	Interest income		687		755
		Fees income		5		4
		Interest expenses		370		769
		Impairment losses due to credit loss (reversal of allowance for credit loss)		(545)		338
	Force TEC Co., Ltd.	Interest income		153		187
		Reversal of allowance for credit loss		—		243
	STX Corporation	Interest income		803		1,364
		Fees income		52		89
		Interest expenses		5		5
		Impairment losses due to credit loss		61,609		2,069
	Osung LST Co., Ltd.	Interest income		170		169
		Interest expenses		1		15
		Reversal of allowance for credit loss		338		99
	Woori Columbus 1st Private Equity Fund	Fees income		308		409
	Others(*)	Interest expenses		12		—
		Impairment losses due to credit loss		277		—

(*) There are Kyesan Engineering Co., Ltd., Good Software Lab Co., Ltd., Dongwoo C & C Co., Ltd. and The Base Enterprise Co., Ltd., Saman Corporation, Gachi Staff Co., Ltd., Deokwon Food Co., Ltd., QTS Shipping Co., Ltd. and Woori Growth Partnerships New Technology Private Equity Fund.

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

	September 30, 2016		December 31, 2015
KDIC		1,500,496		1,500,470	Loan commitment
Kumho Tires Co., Inc.		8,764		11,623	Letter of credit
		47,783		143,756	Loan commitment
Woori Service Networks Co., Ltd.		176		173	Loan commitment
Korea Credit Bureau Co., Ltd.		34		28	Loan commitment
Korea Finance Security Co., Ltd.		200		209	Loan commitment
Chin Hung International Inc.		40,995		40,847	Loan commitment
STX Engine Co., Ltd.		43,129		74,135	Letter of credit
		48,782		13,019	Loan commitment
Samho International Co., Ltd.		35,347		28,976	Loan commitment
Force TEC Co., Ltd.		—		5,954	Loan commitment
STX corporation		28,411		23,235	Letter of credit and others
		81		9,131	Loan commitment

(*) For the guarantee provided to the related parties, the Group recognized provisions for guarantees amounting to 32,660 million Won and 10,122 million Won, respectively, as of September 30, 2016 and December 31, 2015.

(5) Compensation for key management is as follows (Unit: Korean Won in millions):

	For the nine months ended September 30
	2016		2015
Short term benefits		6,878		4,374
Severance payments		423		176
Total		7,301		4,550

Key management includes registered executives and non-registered executives. Outstanding assets and liabilities from transactions with key management amount to 779 million Won and 4,293 million Won, respectively, and with respect to the assets, the Group has not recognized any allowance, nor provision.

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46. TRUST ACCOUNTS

(1) Trust accounts of the Group are as follows (Unit: Korean Won in millions):

	Total assets				Operating income
	September 30, 2016		December 31, 2015		2016				2015
					Three months ended September 30		Nine months ended September 30		Three months ended September 30		Nine months ended September 30
Trust accounts		38,766,493		34,135,580		166,663		592,852		166,121		626,049

(2) Receivables and payables from the transactions between the Group and trust accounts are as follows (Unit: Korean Won in millions):

	September 30, 2016		December 31, 2015
Receivables
Trust fees receivables		31,586		18,704
Payables
Borrowings from trust accounts		3,850,574		3,794,847

(3) Significant transactions between the Group and trust accounts are as follows (Unit: Korean Won in millions):

	2016				2015
	Three months ended September 30		Nine months ended September 30		Three months ended September 30		Nine months ended September 30
Revenue
Trust fees		23,558		56,835		13,513		37,073
Expense
Interest expenses on borrowings from trust accounts		9,553		34,873		14,090		46,529

(4) Principal guaranteed trusts and principal and fixed rate of return guaranteed trusts.

1) The carrying value of principal guaranteed trusts and principal and fixed rate of return guaranteed trusts are as follows (Unit: Korean Won in millions):

	September 30, 2016		December 31, 2015
Principal guaranteed trusts
Old-age pension trusts		4,940		5,235
Personal pension trusts		518,956		523,544
Pension trusts		718,924		681,868
Retirement trusts		54,853		64,921
New personal pension trusts		8,552		8,540
New old-age pension trusts		3,101		3,376
Sub-total		1,309,326		1,287,484
Principal and fixed rate of return guaranteed trusts
Development trusts		20		19
Unspecified money trusts		771		782
Sub-total		791		801
Total		1,310,117		1,288,285

2) As of September 30, 2016 and December 31, 2015, the amounts that the Group has to pay by the capital guaranteed contract or the operating results of the principal and return guaranteed trusts are as follows (Unit: Korean Won in millions):

	September 30, 2016		December 31, 2015
Liabilities for the account (subsidy for trust account adjustment)		22		26

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47. PROMOTING PRIVATIZATION PLAN

Pursuant to the privatization plan of Woori Finance Holdings Co., Ltd., which was decided at the Public Fund Oversight Committee (the “PFOC”) on June 26, 2013, the Group has disposed its subsidiaries. Kwangju Bank and Kyongnam Bank were demerged as of May 1, 2014, and from March 2014 to June 2014, Woori Investment & Securities, Woori Aviva Life Insurance, Woori Savings Bank, Woori Asset Management, Woori Financial and Woori F&I were disposed in due order.

With respect to the privatization of Woori Bank, the Public Fund Oversight Committee (“PFOC”) announced the plan that comprised the merger between Woori Finance Holdings Co., Ltd (“Holding Company”) and Woori Bank and the disposal of controlling interests (30% of ownership) and non-controlling interests (26.97% of ownership), respectively, of Woori Bank after newly listing its shares on the stock exchange newly. Pursuant to the plan, the Bank merged with the Holding Company as of November 1, 2014, and completed its listing on Korea Stock Exchange on November 19, 2014.

On November 28, 2014, KDIC commenced the bidding procedure for the disposal of controlling interests and non-controlling interests of the Bank. Since only the bidding for the non-controlling interests was successful, KDIC’s ownership of the Bank decreased from 56.97% to 51.04%. By the way, as the retirement of treasury stocks on October 2015, KDIC’s ownership of the Bank changed to 51.06% as of September 30, 2016

On July 21, 2015, the PFOC, a deliberative body in charge of privatizing Woori Bank, held a meeting to discuss means to promote the privatization plan, and announced a plan to take a two-track approach to sell the stake. To maximize the retrieval of public fund initially invested, promotion of privatization schedule and development of financial industry, the PFOC is considering a new approach of selling parts out of the government’s stake to multiple buyers in smaller portions, as well as its previous plan of selling the controlling stake to a single buyer. The government has a strong commitment in carrying forward the sale of Woori Bank and will continue to make utmost effort to privatize Woori Bank as early as possible. The specifics of the plan will be discussed with PFOC in the future.

In addition, Financial Services Commission (“FSC”) announced the amendment on normalization of business MOU, which aimed to promote improvement of corporate value through enhancing managerial autonomy of the Group on October 2, 2015, and subsequent to the announcement, revised the Enforcement Decree of the Special Act on the Management of Public Funds on March 29, 2016. FSC and KDIC intend to take every possible measure to privatize Woori Bank.

Also, the Public Fund Management Committee (“PFMC”) announced the latest sale-plan that aims to sell off about 30 percent out of a 51.06 percent stake in the bank held by KDIC to multiple investors splitting the shares into 4 to 8 percent chunks on August 22, 2016. Pursuant to the plan, the KDIC commenced the bidding procedure for the disposal on August 24, 2016 by putting up a public notice of sale, and received letters of intent from 18 potential bidders by September 23, 2016. The PFMC has closed the bidding on November 11, 2016, subsequently announced seven chosen buyers to acquire a total of 29.7 percent stake in Woori Bank on November 13 and plans to wrap up the sale process by the end of this year.

48. AGREEMENT ON THE IMPLEMENTATION OF A MANAGEMENT PLAN 

(1) Since December 30, 2000, the Bank and the KDIC have entered into an agreement to implement management plans. Under the agreements, the Bank is obligated to improve its respective financial ratios, such as Bank of International Settlements (“BIS”) capital ratio, general and administrative ratio, non-performing loan rate. If the Bank fails to make improvements, the KDIC can enforce the Bank to increase or decrease its capital, pursue mergers, transfer of loans and deposits, or close or sell parts of its business operations.

(2) In addition, on July 2, 2001, in order to establish efficient integrated structure of the Bank, the Bank and the KDIC have entered into an agreement to implement management plans, which incorporate establishment of corporate governance and business management system, improvement of short-term operational performance, strengthening the Bank’s competitiveness and pursuance of privatization plan, meeting the financial ratio objectives, and penalties in case the Bank not meeting such management plans.

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