6-K 1 d595701d6k.htm FORM 6-K FORM 6-K
Table of Contents

 

 

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

Form 6-K

 

 

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16

UNDER THE SECURITIES EXCHANGE ACT OF 1934

For the month of August 2018

 

 

Woori Bank

(Translation of Registrant’s name into English)

 

 

51, Sogong-ro, Jung-gu, Seoul, 04632, Korea

(Address of principal executive offices)

 

 

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

Form 20-F  ☒            Form 40-F  ☐

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):  ☐

Note: Regulation S-T Rule 101(b)(1) only permits the submission in paper of a Form 6-K if submitted solely to provide an attached annual report to security holders.

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):  ☐

Note: Regulation S-T Rule 101(b)(7) only permits the submission in paper of a Form 6-K if submission to furnish a report or other document that the registration foreign private issuer must furnish and make public under the laws of the jurisdiction in which the registrant is incorporated, domiciled or legally organized (the registrant’s “home country”), or under the rules of the home country exchange on which the registrant’s securities are traded, as long as the report or other document is not a press release, is not required to be and has not been distributed to the registrant’s security holders, and if discussing a material event, has already been the subject of a Form 6-K submission or other Commission filing on EDGAR.

 

 

 


Table of Contents


Table of Contents

Summary of

2018 First Half Business Report

Table of Contents

 

I.  

INTRODUCTION OF THE BANK

     5  
 

1.

   Overview of the Bank      5  
 

2.

   Capital Structure (Changes in Capital)      10  
 

3.

   Total Number of Authorized Shares      11  
 

4.

   Voting Rights      12  
 

5.

   Dividend Information      12  
II.  

BUSINESS OVERVIEW

     13  
 

1.

   Results of Operations      13  
 

2.

   Business Performance by Operation      13  
 

3.

   Funding Sources and Use of Funds      15  
 

4.

   Other Information Necessary for Making Investment Decisions      17  
III.  

FINANCIAL INFORMATION

     19  
 

1.

   Condensed Financial Statements (Consolidated)      19  
 

2.

   Condensed Financial Statements (Separate)      21  
IV.  

COMPENSATION TO THE INDEPENDENT AUDITOR

     23  
 

1.

   Audit Services      23  
 

2.

   Non-Audit Services      23  
V.  

CORPORATE GOVERNANCE AND AFFILIATED COMPANIES

     24  
 

1.

   About the Board of Directors      24  
 

2.

   Affiliated Companies (as of June 30, 2018)      25  
VI.  

SHAREHOLDER INFORMATION

     25  
 

1.

   Share Distribution      25  
 

2.

   Stock Price and Stock Market Performance      27  
VII.  

DIRECTORS AND EMPLOYEE INFORMATION

     28  

 

3


Table of Contents
 

1.

   Directors      28  
 

2.

   Employee Status      28  
 

3.

   Directors’ Compensation      29  
VIII.  

RELATED PARTY TRANSACTIONS

     29  

Except where indicated otherwise, financial information contained in this document (including the attached financial statements) has been prepared in accordance with the Korean equivalent of International Financial Reporting Standards (“Korean IFRS”), which differ in certain important respects from generally accepted accounting principles in the United States.

All references to “Woori Bank,” “we,” “us” or the “Bank” are to Woori Bank and, unless the context requires otherwise, its subsidiaries. In addition, all references to “Won” or “KRW” in this document are to the currency of the Republic of Korea.

 

4


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I.

Introduction of the Bank

 

1.

Overview of the Bank

 

a.

History

 

(1)   Background: Major developments.

March 27, 2001    Became a subsidiary of Woori Finance Holdings Co., Ltd. (“Woori Finance Holdings”)
December 31, 2001    Merged with the spun off banking division of Peace Bank of Korea
January 31, 2002    Transferred the credit card business of Hanvit Bank to Woori Card
May 22, 2003    Awarded Republic of Korea Corporate Image Grand Prize – Grand Prize for CI and First Prize for Knowledge Management
July 31, 2003    Merged with Woori Investment Bank
March 31, 2004    Merged with Woori Credit Card
September 7, 2004    Selected as 2004 Top Bank of Korea by British magazine “The Bankers”
November 4, 2005    Opened the first comprehensive financial office in the financial sector, “Woori Finance Plaza”
May 19, 2006    Established Korea BTL Infrastructure Fund
December 1, 2006    Officially launched Woori Global Markets Asia Limited
November 12, 2007    Established a local legal entity in China, Woori Bank China Ltd.
January 9, 2008    Established a local legal entity in Russia, ZAO Woori Bank
December 16, 2008    Issued 70,000,000 convertible preferred shares (par value KRW 5,000, issue price KRW 10,000)
April 1, 2009    Issued 60,000,000 common shares for increase in capital
April 1, 2009    Selected as “Outstanding Company in Gender Equal Employment” sponsored by the Ministry of Labor
December 15, 2009    Awarded Asian Financial Culture Grand Prize “Top Prize in Community Activities”
March 21, 2010    Woori Bank China Ltd. acquired qualification as a “settlement bank for Renminbi currency in international trade”

 

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April 18, 2011    Woori Smile Microcredit executed an MOU to jointly support microcredit with the Ministry of Land, Transport and Maritime Affairs
August 24, 2011    Internet banking reached 10 million customers
April 25, 2012    Awarded “2012 Top Bank of Korea” by the Asian Banker for two consecutive years
August 30, 2012    Awarded 2012 Asia PB Top Award by Asia Economic Daily
September 25, 2012    Woori Brazil Bank began business
October 11, 2012    Selected as “Top Financial Institution for Anti-Money Laundering”
November 7, 2012    Awarded Grand Prize for the First Awards for Protection of Financial Consumers in 2012 by the Korea Economic Daily
November 29, 2012    Awarded Presidential Award sponsored by the Financial Supervisory Commission for “Anti-Money Laundering”
December 6, 2012    Awarded “2012 Grand Prize for Small Loan Financing”
December 13, 2012    Awarded Grand Prize for “2012 Aju Economy and Finance Award”
January 17, 2013    Awarded Grand Prize for Top Customer Service
March 27, 2013    Awarded Grand Prize for Woori Bank “Two Chairs” PB services for four consecutive years
April 1, 2013    Spun off its credit card business
June 14, 2013    Inaugurated the 48th President of the Bank, concurrently holding the position of the 6th President of Woori Finance Holdings
June 27, 2013    Number 1 in Korean Standard-Service Quality Index (KS-SQI) for three consecutive years
October 4, 2013    Selected by National Pension Fund as “Top Foreign Exchange Bank”
December 19, 2013    Awarded “Grand Prize for Small Loan Finance” sponsored by the FSS
January 3, 2014   

Awarded final approval to acquire Indonesia’s Saudara Bank

 

115th anniversary of the establishment of the Bank

January 9, 2014    Awarded “2014 Grand Award for Customer Service”

 

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February 21, 2014    Awarded Grand Prize for “Republic of Korea Top Bank”
March 26, 2014    The Bank re-selected as “the main bank for the City of Seoul”
March 29, 2014    Hansae Basketball team, the professional women’s basketball team, won the “overall championship for 2013-14”
April 1, 2014    Established business agreement with Ministry of Health and Welfare for promotion of philanthropic culture
April 17, 2014    Woori Short Term National/Public Bond Fund reached KRW 100 billion in commitments
April 24, 2014    Became the First domestic bank to issue Basel III subordinated debt in foreign currency (USD 1 billion)
May 21, 2014    Awarded “Korea’s Top Bank in Money Management” by Asian Banker in 2014
May 29, 2014    Executed business agreement with the Patent Office for promotion of IP finance
June 2, 2014    Executed business agreement with Korea Housing Guarantee Co., Ltd. for dealing and managing “Guaranteed Standard PF Loans”
June 26, 2014    The Bank selected by the Ministry of Trade, Industry and Energy as the exclusive bank for “R&D Project Development”
July 28, 2014    The Bank’s board of directors approves the merger between Woori Finance Holdings and Woori Bank (the “Merger”)
September 30, 2014    The Korea Deposit Insurance Corporation (the “KDIC”) announced the sale of the controlling stake (30%) in Woori Bank
October 10, 2014    The first Korean bank to issue Yuan-denominated bonds
November 1, 2014    Woori Finance Holdings merged with and into the Bank
November 10, 2014    Opened office in Vladivostok, Russia
December 30, 2014   

Inaugurated the 49th President of the Bank, Kwang-Goo Lee

 

Awarded final approval to merge PT. Bank Woori Indonesia with Saudara Bank

February 26, 2015    PT. Bank Woori Saudara Indonesia officially launched

 

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March 31, 2015    Commemoration of the 100 year partnership between Woori Bank and Seoul Metropolitan Government
May 26, 2015    Launched mobile-only bank, WiBee Bank
   WiBee Bank mobile loan products released
August 20, 2015    Launched Woori-Samsung Pay Service
September 19, 2015    Launched first overseas service of WiBee Bank, ‘WiBee Bank Cambodia’
November 29, 2015    K-Bank is selected as the first internet-only bank (Woori Bank stake 10%)
January 6, 2016    Launched 1st bank mobile messenger service, WibeeTalk
June 24, 2016    First Korean Bank to launch offshore Won-Yuan clearing services
September 21, 2016    Successfully issued $500 million foreign currency denominated contingent convertible bonds, the first in the form of perpetual bonds in Korea.
November 13, 2016    The FSC announced the KDIC’s successful privatization efforts through the sales of a combined 29.7% ownership interest in Woori Bank to seven financial companies
December 8, 2016    Selected as 2016 Top Bank of Korea by British magazine “The Bankers”
December 27, 2016    Achievement of an overseas network comprising 250 branches
December 28, 2016    The number of users of WiBee platforms, WiBee Talk and WiBee Members, exceeds 3 million
January 5, 2017    The first Korean bank to launch ‘One-touch Notice’ in foreign languages
January 12, 2017    Selected as the 2016 Best Korean Wealth Management Provider by British magazine “World Finance”
February 5, 2017    The first Korean bank to Open office in Katowice, Poland
March 22, 2017    The first Korean bank to launch Korean film investment fund ‘Woori Bank-Company K Korean film investment fund’
March 28, 2017    Launched SORi, the first voice recognition AI banking service in Korea

 

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June 8, 2017    Awarded “Best Transaction Bank” and “Top Bank in Money Management” by Asian Banker
June 21, 2017    Launched overseas remittance service with an Indonesian telecommunications company, the first in the Korean financial sector
June 28, 2017    Received a Presidential Citation for “social enterprise fosterage” from the Ministry of Employment and Labor, the sole recipient from the Korean financial sector.
July 12, 2017    Joint declaration to create jobs by management and labor force for the first time in the Korean financial sector
September 8, 2017    Woori Bank Vietnam launched a local credit card in collaboration with Woori Card
October 16, 2017    Selected by National Pension Fund as main transaction bank
November 30, 2017    Awarded ‘2017 Asia-Pacific Bank of the Year’ by Bankers
December 22, 2017    Inaugurated the 51st President of the Bank, Tae-Seung Sohn
December 26, 2017    Established global networks of 300
January 15, 2018    Opened sub-branch in Incheon International Airport Passenger Terminal 2
February 1, 2018    Launched comprehensive real-estate information platform, ‘WiBee Homes’
May 8, 2018    Implemented new core banking system ‘WINI’
June 24, 2018    Acquired a local financial institution in Cambodia, WB Finance (‘VisionFund Cambodia’), expanding global network to 410

 

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b.

Affiliated Companies

 

  (1)

Overview of Business Group

 

  1.

Name of business group: Woori Bank

 

  (2)

Affiliated companies within the business group

 

 

As of June 30, 2018     

Type

  

Name of Company

  

Controlling Company

Company    Woori Bank   

First Tier Subsidiaries

(19 companies)

   Woori Card (equity ownership 100.0%)    Woori Bank
   Woori Investment Bank (equity ownership 59.83%)
   Woori FIS (equity ownership 100.0%)
   Woori Private Equity Asset Management (equity ownership 100.0%)
   Woori Finance Research Institute (equity ownership 100.0%)
   Woori Credit Information (equity ownership 100.0%)
   Woori Fund Services (equity ownership 100.0%)
   Korea BTL Infrastructure Fund (equity ownership 99.87%)
   Woori America Bank (equity ownership 100.0%)
   PT. Bank Woori Saudara Indonesia (equity ownership 79.88%)
   AO Woori Bank (equity ownership 100.0% - 1 share)
   Woori Bank China Limited (equity ownership 100.0%)
   Woori Bank Brasil (equity ownership 100.0% - 1 share)
   Woori Finance Cambodia (equity ownership 100.0%)
   WB Finance (Cambodia) (equity ewnership 100.0%)
   Woori Finance Myanmar (equity ownership 100.0%)
   Woori Wealth Bank Philippines (equity ownership 51%)
   Woori Bank Vietnam (equity ownership 100.0%)
   Woori Global Markets Asia Ltd. (equity ownership 100.0%)

Second Tier Subsidiaries

(1 company)

   TUTU Finance-WCI Myanmar (equity ownership 100.0%)    Woori Card

 

*

Listed Companies : Woori Bank, Woori Investment Bank and PT. Bank Woori Saudara Indonesia

 

2.

Capital Structure (Changes in Capital)

 

 

As of June 30, 2018                        (units: Won, shares)

Date

  

Category

  

Stock Decrease/Increase

  

Type

  

Quantity

  

Par
Value

  

Issue
price

  

Note

4.1.2013    Capital reduction with compensation    Common    153,797,130    5,000    5,000    Capital reduction due to spin off of credit card business
4.1.2013    Capital reduction with compensation    Preferred    15,469,070    5,000    10,000    Capital reduction due to spin off of credit card business
6.5.2013    Exercise of conversion rights    Common    54,530,930    5,000    10,000    Reduction of preferred shares due to exercise of rights to convert convertible preferred shares
6.5.2013    Exercise of conversion rights    Preferred    54,530,930    5,000    10,000    Increase in common shares due to exercise of rights to convert convertible preferred shares
11.3.2014       Common    596,690,380    5,000    5,000    Capital reduction due to the merger with Woori Finance Holdings
11.3.2014       Common    676,278,371    5,000    5,000    Increase in common shares (new issuance of shares) due to the merger with Woori Finance Holdings
10.2.2015       Common    278,371    5,000       Retirement of shares*

 

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*

Upon consummation of the merger with Woori Finance Holdings, 596,690,380 shares of the Bank were cancelled and 676,278,371 shares were newly issued according to the merger ratio.

*

On October 2, 2015, 278,371 shares were retired and the total number of shares issued changed to 676,000,000 shares. There was no decrease to Woori Bank’s capital as the number of outstanding shares remains the same. [Related Disclosure : Report on Form 6-K submitted by Woori Bank on September 11, 2015, entitled “Resolution Relating to Retirement of Shares”]

 

3.

Total Number of Authorized Shares

 

 

As of June 30, 2018           (unit: shares)  

Items

   Type  
   Common Shares      Total  

Total number of shares authorized

     5,000,000,000        5,000,000,000  

Total number of shares issued to date

     676,000,000        676,000,000  

Number of treasury shares

     2,728,774        2,728,774  

Number of outstanding shares

     673,271,226        673,271,226  

 

*

Upon consummation of the merger with Woori Finance Holdings, 596,690,380 shares of the Bank were cancelled and 676,278,371 shares were newly issued according to the merger ratio.

*

On September 30, 2015 Woori Bank terminated its trust agreement and acquired 2,913,155 treasury shares which were deposited into Woori Bank’s treasury share account. On October 2, 2015, 278,371 of such acquired shares were retired. [Related Disclosure : Report on Form 6-K submitted by Woori Bank on September 11, 2015, entitled “Resolution Relating to Retirement of Shares”]

 

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4.

Voting Rights

 

 

As of June 30, 2018         (unit: shares)  

Items

   Number of stock      Notes  

Total number of shares issued

   Common Shares      676,000,000        —    
   Preferred Shares      —          —    

Number of shares without voting rights

   Common Shares      2,728,774        Note 1
   Preferred Shares      —          —    

Number of shares for which voting rights are excluded pursuant to the articles of incorporation

   Common Shares      —          —    
   Preferred Shares      —          —    

Number of shares for which voting rights are limited by law

   Common Shares      17,454,546        Note 2
   Preferred Shares      —          —    

Number of shares for which voting rights have been restored

   Common Shares      —          —    
   Preferred Shares      —          —    

Number of shares for which voting rights may be exercised

   Common Shares      655,816,680        —    
   Preferred Shares      —          —    

Note 1) The shares without voting rights are treasury shares. Please see “I. Introduction of the Bank – 3. Total Number of Authorized Shares.”

Note 2) Pursuant to Article 16-2(2) of the Banking Act, a non-financial business operator is restricted from exercising voting rights in excess of 4% of the total number of outstanding voting shares of a bank.

 

5.

Dividend Information

 

Items

   1H 2018      2017      2016  

Par value per share (Won)

     5,000        5,000        5,000  

Net profit (Millions of Won)

     1,305,878        1,512,148        1,261,266  

Earnings per share (Won)

     1,828        1,999        1,567  

Total cash dividends (Millions of Won)

     —          403,963        269,308  

Total stock dividends (Millions of Won)

     —          —          —    

Cash dividend payout ratio (%)

     —          26.71        21.35  

Cash dividend yield (%)

   Common Shares      —          3.70        3.01  
   Preferred Shares      —          —          —    

Stock dividend yield (%)

   Common Shares      —          —          —    
   Preferred Shares      —          —          —    

Cash dividend per share (Won)

   Common Shares      —          600        400  
   Preferred Shares      —          —          —    

Stock dividend per share (Won)

   Common Shares      —          —          —    
   Preferred Shares      —          —          —    

 

*

Based on K-IFRS consolidated financial statements

*

2017 figures include interim dividends

 

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II.

Business Overview

 

1.

Results of Operations

 

As of June 30, 2018    (unit: 100 millions of Won)  

Type

   1H 2018      1H 2017      2017      2016  

Operating income

     18,077        14,842        21,567        15,742  

Non-operating income

     544        805        1,679        1,690  

Non-operating expenses

     606        1,348        3,751        1,898  

Ordinary profits

     18,015        14,299        19,495        15,534  

Income from continuing operations before income tax

     18,015        14,299        19,495        15,534  

Income tax expense from continuing operations

     4,852        3,209        4,194        2,759  

Income from discontinued operations

     —          —          —          —    

Net income

     13,163        11,090        15,301        12,775  

 

*

Based on K- IFRS consolidated financial statements

 

2.

Business Performance by Operation

 

a.

Deposit Services

 

As of June 30, 2018    (unit: millions of Won)  

Type

   1H 2018      2017      2016  

Deposits received in local currency

  

Demand deposits

     9,337,563        9,349,070        9,491,680  
  

Fixed deposits

     198,765,132        194,289,437        183,723,169  
  

Mutual funds

     32,292        34,055        37,128  
  

Subtotal

     208,134,986        203,672,562        193,251,977  

Deposits received in foreign currencies

     21,949,850        23,682,755        21,452,943  

CDs

     4,552,825        4,399,817        3,808,856  

Money trusts

     1,401,853        1,401,841        1,360,176  

Other deposits received

     1,860,652        1,538,110        1,146,459  

Total

     237,900,166        234,695,084        221,020,411  

 

*

Based on K- IFRS consolidated financial statements

 

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b.

Loan Services

 

  (a)

Balances of Loans by Type

 

As of June 30, 2018    (unit: millions of Won)  

Type

   1H 2018      2017      2016  

Loans in local currency

     205,110,682        200,213,230        191,309,481  

Loans in foreign currencies

     17,805,418        15,664,795        17,855,868  

Guarantee payments

     14,910        23,620        25,197  

Total

     222,931,010        215,901,645        209,190,547  

 

*

Based on K- IFRS consolidated financial statements

*

Loans in foreign currencies includes domestic banker’s letter of credit (usance)

 

  (b)

Balances of Loans by Maturity

 

As of June 30, 2018            (unit: in millions of Won)  

Type

   1 year or under      Over 1 year ~
3 years or under
     Over 3 years ~
5 years or under
     Over 5 years      Total  

Loans in local currency

     101,056,521        41,538,706        9,788,418        50,583,210        202,966,855  

Loans in foreign currencies

     8,029,436        1,824,600        876,109        845,717        11,575,862  

 

*

Based on K- IFRS separate financial statements

c. Guarantees

 

As of June 30, 2018    (unit: millions of Won)  

Type

   1H 2018      2017      2016  

Confirmed guarantees

     6,563,000        6,875,021        8,270,187  

Unconfirmed guarantees

     4,510,070        4,526,593        5,101,701  

Commercial paper purchase commitments and others

     1,299,503        1,458,101        1,389,896  

 

*

Based on K- IFRS consolidated financial statements

d. Trust Business

 

 

As of June 30, 2018                         (unit: millions of Won)  

Type

   1H 2018      2017      2016  
   Trust Funds      Trust Fees      Trust Funds      Trust Fees      Trust Funds      Trust Fees  

Money trust

     35,301,197        102,572        30,131,764        139,025        26,019,180        73,814  

Property trust

     13,699,621        2,538        12,942,930        4,507        12,714,338        4,803  

Total

     49,000,818        105,110        43,074,694        143,532        38,733,518        78,617  

 

*

Trust funds indicate average balances.

 

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3.

Funding Sources and Use of Funds

 

a.

Sources of Funds

[Bank Accounts]

(unit: millions of Won, %)

Classification

 

Funding Source

  1H 2018     2017     2016  
  Average
Balance
    Interest
Rate
    Proportion     Average
Balance
    Interest
Rate
    Proportion     Average
Balance
    Interest
Rate
    Proportion  

Local currency funds

  Deposits received in local currency     195,521,640       1.37       66.83       187,332,008       1.26       66.02       183,440,285       1.38       65.35  
  Certificates of deposit     4,297,945       1.83       1.47       4,500,100       1.66       1.59       3,466,223       1.70       1.23  
  Borrowings in local currency     6,433,216       1.44       2.20       6,213,903       1.32       2.19       6,709,080       1.45       2.39  
  Call money in local currency     235,962       1.51       0.08       1,254,623       1.23       0.44       1,159,188       1.32       0.41  
  Others     21,082,759       2.36       7.21       20,168,307       2.29       7.11       18,532,241       2.60       6.60  
  Subtotal     227,571,521       1.47       77.79       219,468,941       1.37       77.34       213,307,017       1.50       75.98  

Foreign currency funds

  Deposits received in foreign currencies     15,583,073       0.72       5.33       14,338,927       0.51       5.05       14,838,684       0.47       5.29  
  Borrowings in foreign currencies     6,129,382       1.96       2.10       7,267,096       1.38       2.56       8,595,575       0.86       3.06  
  Call money in foreign currencies     597,715       1.55       0.20       980,001       1.14       0.35       1,401,294       0.70       0.50  
  Debentures in foreign currencies     3,597,648       3.69       1.23       3,649,805       3.11       1.29       3,950,614       2.54       1.41  
  Others     730,110       0.48       0.25       574,786       0.14       0.20       531,877       0.29       0.19  
  Subtotal     26,637,928       1.42       9.11       26,810,615       1.12       9.45       29,318,044       0.87       10.44  

Others

  Total capital     20,110,329       —         6.87       20,134,843       —         7.10       19,617,484       —         6.99  
  Provisions     454,845       —         0.16       351,750       —         0.12       412,553       —         0.15  
  Others     17,780,446       —         6.08       16,993,430       —         5.99       18,070,427       —         6.44  
  Subtotal     38,345,620       —         13.11       37,480,023       —         13.21       38,100,463       —         13.57  

Total

    292,555,069       1.27       100.00       283,759,580       1.16       100.00       280,725,524       1.23       100.00  

 

*

Based on K-IFRS separate financial statements

[Trust Accounts]

(unit: millions of Won, %)

Type

   Funding Source    1H 2018      2017      2016  
   Average
Balance
     Interest
Rate
     Share      Average
Balance
     Interest
Rate
     Share      Average
Balance
     Interest
Rate
     Share  

Cost

   Money trusts      35,301,197        1,76        71.85        30,131,764        1.70        69.76        26,019,180        1.52        66.98  
   Borrowings      0        0,00        0.00        0        0.00        0.00        0        0.00        0.00  
   Subtotal      35,301,197        1,76        71.85        30,131,764        1.70        69.76        26,019,180        1.52        66.98  

Non-cost

   Property trusts      13,699,621        —          27.88        12,942,930        —          29.97        12,714,338        —          32.73  
   Special reserves      39,845        —          0.08        39,082        —          0.09        38,160        —          0.10  
   Other      93,115        —          0.19        76,821        —          0.18        72,810        —          0.19  
   Subtotal      13,832,581        —          28.15        13,058,833        —          30.24        12,825,308        —          33.02  

Total

     49,133,778        —          100.00        43,190,597        —          100.00        38,844,488        —          100.00  

 

15


Table of Contents
b.

Fund Management Performance

[Bank Accounts]

(unit: millions of Won, %)

Type

  

Managed Item

  1H 2018     2017     2016  
  Average
Balance
    Interest
Rate
    Share     Average
Balance
    Interest
Rate
    Share     Average
Balance
    Interest
Rate
    Share  

Local

currency

funds

   Deposits in local currency     4,130,599       1.46       1.41       3,424,567       1.28       1.21       3,171,599       1.34       1.13  
   Marketable securities in local currency     32,935,615       2.24       11.26       35,186,537       1.95       12.40       33,880,119       2.58       12.07  
   Loans in local currency     201,363,818       3.18       68.83       194,161,817       3.05       68.42       189,079,324       3.10       67.35  
   Guarantee payments     17,734       1.99       0.01       26,639       3.14       0.01       51,254       0.89       0.02  
   Call loans in local currency     1,338,230       1.64       0.46       2,275,748       1.33       0.80       3,581,382       1.41       1.28  
   Private placed bonds     126,344       3.05       0.04       185,092       5.94       0.07       247,292       5.19       0.09  
   Credit card receivables     —         —         —         28       —         0.00       24       —         0.00  
   Other     6,608,073       2.02       2.26       4,235,478       1.99       1.49       4,580,215       2.04       1.63  
   Bad debt expense in local currency (-)     (1,263,122     —         (0.43     (1,284,188     —         (0.45     (1,925,177     —         (0.69
   Subtotal     245,257,291       3.00       83.83       238,211,718       2.85       83.95       232,666,033       2.98       82.88  

Foreign

currency

funds

   Deposits in foreign currencies     3,930,846       1.22       1.34       3,791,184       0.67       1.34       3,761,286       0.43       1.34  
   Marketable securities in foreign currencies     3,385,251       1.22       1.16       2,735,707       1.07       0.96       1,752,884       1.13       0.62  
   Loans in foreign currencies     10,770,723       2.94       3.68       10,790,442       2.51       3.80       13,371,873       1.95       4.76  
   Call loans in foreign currencies     2,433,668       1.87       0.83       2,506,588       1.33       0.88       2,940,858       0.85       1.05  
   Bills bought     7,167,970       2.60       2.45       7,417,500       1.88       2.61       7,110,164       1.53       2.53  
   Other     34,827       2.73       0.01       48,472       2.50       0.02       13,829       9.72       0.00  
   Bad debt expense in foreign currencies (-)     (486,471     —         (0.17     (332,301     —         (0.12     (312,211     —         (0.11
   Subtotal     27,236,812       2.35       9.31       26,957,590       1.85       9.50       28,638,685       1.51       10.20  

Other

   Cash     1,224,071       —         0.42       1,201,343       —         0.42       1,169,566       —         0.42  
   Property and equipment for business purposes     2,360,666       —         0.81       2,352,466       —         0.83       2,325,893       —         0.83  
   Other     16,476,230       —         5.63       15,036,463       —         5.30       15,925,347       —         5.67  
   Subtotal     20,060,966       —         6.86       18,590,272       —         6.55       19,420,807       —         6.92  
Total     292,555,069       2.73       100.00       283,759,580       2.57       100.00       280,725,524       2.62       100.00  

 

*

Based on K-IFRS separate financial statements

[Trust Accounts]

(Unit: millions of Won, %)

Type

  

Managed Item

  1H 2018     2017     2016  
  Average
Balance
    Interest
Rate
    Share     Average
Balance
    Interest
Rate
    Share     Average
Balance
    Interest
Rate
    Share  

Profit

   Loans     34,264       3.57       0.07       27,539       3.62       0.06       23,088       4.21       0.06  
   Securities     11,509,810       4.01       23.43       8,038,329       3.25       18.61       4,701,052       1.93       12.10  
   Other     24,552,003       1.91       49.97       22,962,574       1.47       53.17       22,237,766       1.63       57.25  
   Reserves for bond ratings (-)     (18     0.00       0.00       (45     0.00       0.00       (36     0.00       0.00  
   Present value discount (-)     (7     0.00       0.00       (72     0.00       0.00       (215     0.00       0.00  
   Subtotal     36,096,052       2.58       73.46       31,028,325       1.93       71.84       26,961,655       1.68       69.41  

Non-profit

   Subtotal     13,037,726       —         26.54       12,162,272       —         28.16       11,882,833       —         30.59  
Total     49,133,778       —         100.00       43,190,597       —         100.00       38,844,488       —         100.00  

 

16


Table of Contents

4. Other Information Necessary for Making Investment Decisions

 

a.

Selected Ratios

BIS Capital Adequacy Ratios

 

     (unit: 100 millions of Won, %)  

Type

   1H 2018      2017      2016  

Equity capital (A)

     231,996        226,032        229,005  

Risk weighted assets (B)

     1,519,886        1,467,622        1,497,281  

Capital adequacy ratio (A/B)

     15.26        15.40        15.29  

Liquidity Ratios

 

 

(unit: %)  

Type

   1H 2018      2017      2016  

Liquidity coverage ratio (LCR)

     101.60        102.06        109.52  

Foreign currency liquidity coverage ratio(LCR) **

     119.32        103.11        —    

Ratio of business purpose premises and equipment ***

     12.80        13.49        13.49  

 

*

Based on K-IFRS consolidated financial statements

**

Newly introduced in 2017 (Current minimum ratio is 70% in 2018; to increase to 80% in 2019). Our foreign currency LCR was 120.66% in April 2018, 118.09% in May 2018 and 119.13% in June 2018.

***

Based on the ending balances of 1H 2018, FY 2017 and FY2016

 

b.

Asset Quality

 

          (unit: 100 millions of Won)  

Type

   1H 2018     2017     2016  

Total loans

   Total      2,262,351       2,221,185       2,166,122  
   Corporate      1,181,528       1,155,213       1,140,252  
   Household      1,080,822       1,065,972       1,025,870  

Sub-standard and below

loans Sub-standard and below loan ratio

   Total      11,458       18,396       21,121  
     0.51     0.83     0.98
   Corporate      8,917       15,826       18,237  
     0.75     1.37     1.60
  

Household

     2,541       2,570       2,884  
     0.24     0.24     0.28

Delinquency ratio

  

Based on total loans

(after seasonal adjustment)

     0.33     0.34     0.46
     (0.52 )%      (0.38 )%      (0.52 )% 
  

Based on corporate loans

(after seasonal adjustment)

     0.41       0.45     0.61
     (0.69 )%      (0.49 )%      (0.66 )% 
  

Based on household loans

(after seasonal adjustment)

     0.31     0.28     0.31
     (0.42 )%      (0.31 )%      (0.33 )% 

 

*

Based on K-IFRS separate financial statements

 

17


Table of Contents
c.

Recent Developments

On November 1, 2014, the Bank merged with its holding company, Woori Finance Holdings, according to the resolution of the board of directors on July 28, 2014, to maximize the possibility of a successful privatization. New shares of the Bank, the surviving entity, were allotted and delivered to the shareholders of Woori Finance Holdings based on a 1:1.00000000 ratio.

Upon the consummation of the merger, 596,690,380 shares of the Bank were cancelled and 676,278,371 new shares were issued.

The major terms of the Merger are as follows:

 

Item

  

Details

Method of Merger

   Merger of parent company with and into wholly-owned subsidiary

Merging entities

   Woori Bank (surviving entity)
   Woori Finance Holdings (non-surviving entity)

New shares issued in Merger

   676,278,371 common shares

Schedule of the Merger

   Date of the Merger    November 1, 2014
   Date of registration of Merger    November 3, 2014
   Delivery of share certificates    November 18, 2014
   Date of new listing of shares    November 19, 2014

 

18


Table of Contents
III.

Financial Information

 

1.

Condensed Financial Statements (Consolidated)

Summary Consolidated Statement of Financial Position

 

(The Bank and its Consolidated Subsidiaries)    (unit: millions of Won)  

Classification

   1H 2018     2017     2016  

ASSETS

      

Cash and cash equivalents

     5,920,568       6,908,286       7,591,324  

Financial assets at FVTPL (fair value through profit or loss) K-IFRS1109

     6,340,704       —         —    

Financial assets at FVTPL (fair value through profit or loss) K-IFRS1039

     —         5,843,077       5,650,724  

Financial assets at FVTOCI (other comprehensive income)

     14,644,608       —         —    

Available-for-sale financial assets

     —         15,352,950       20,817,583  

Securities at amortized cost

     17,702,129         —    

Held-to-maturity financial assets

     —         16,749,296       13,910,251  

Loans and other financial assets at amortized cost

     277,720,003       —         —    

Loans and receivables

     —         267,106,204       258,392,633  

Investments in joint ventures and associates

     412,940       417,051       439,012  

Investment properties

     381,177       371,301       358,497  

Premises and equipment

     2,450,754       2,477,545       2,458,025  

Intangible assets and goodwill

     653,514       518,599       483,739  

Assets held for sale

     18,705       48,624       2,342  

Current tax assets

     11,322       4,722       6,229  

Deferred tax assets

     89,711       280,130       232,007  

Derivative assets

     12,395       59,272       140,577  

Net defined benefit assets

     —         —         70,938  

Other assets

     202,800       158,404       128,846  
Total assets      326,561,330       316,295,461       310,682,727  

LIABILITIES

      

Financial liabilities at FVTPL (fair value through profit or loss) K-IFRS1109

     2,578,332       —         —    

Financial liabilities at FVTPL (fair value through profit or loss) K-IFRS1039

     —         3,427,909       3,803,358  

Deposits due to customers

     237,900,166       234,695,084       221,020,411  

Borrowings

     15,899,599       14,784,706       18,769,515  

Debentures

     26,752,725       27,869,651       23,565,449  

Provisions

     386,374       410,470       428,477  

Net defined benefit liability

     99,859       43,264       64,666  

Current tax liabilities

     154,202       232,600       171,192  

Deferred tax liabilities

     14,777       22,681       22,023  

Derivative liabilities

     67,505       67,754       7,221  

Other financial liabilities

     21,408,267       13,892,461       21,985,086  

Other liabilities

     302,913       283,981       299,376  
Total liabilities      305,564,719       295,730,561       290,136,774  

EQUITY

      

Owners’ equity:

     20,790,188       20,365,892       20,386,160  

Capital stock

     3,381,392       3,381,392       3,381,392  

Hybrid securities

     2,763,256       3,017,888       3,574,896  

Capital surplus

     285,885       285,880       286,331  

Other equity

     (2,113,798     (1,939,274     (1,468,025

Retained earnings

     16,473,453       15,620,006       14,611,566  

Non-controlling interests

     206,423       199,008       159,793  
Total equity      20,996,611       20,564,900       20,545,953  
Total liabilities and equity      326,561,330       316,295,461       310,682,727  
Number of Consolidated Subsidiaries      61       53       74  

 

19


Table of Contents

Summary Consolidated Statement of Comprehensive Income

 

(The Bank and its Consolidated Subsidiaries)    (unit: millions of Won, except per share amounts)  

Classification

   1H 2018     1H 2017     2017     2016  

Operating income

     1,807,715       1,484,228       2,156,742       1,574,206  

Net interest income

     2,764,474       2,550,320       5,220,650       5,019,544  

Net fees and commissions income

     602,655       537,700       1,070,466       937,131  

Dividend income

     49,704       59,445       124,992       184,510  

Net gain or loss on financial instruments at FVTPL (fair value through profit or loss) K-IFRS1109

     117,023       —         —         —    

Net gain or loss on financial instruments at FVTPL (fair value through profit or loss) K-IFRS1039

     —         (146,409     (104,827     114,387  

Net gain or loss on financial assets at FVTOCI

     1,287       —         —         —    

Net gain or loss on available for sale financial assets

     —         104,172       192,708       (1,035

Net gain or loss arising on financial assets at amortized cost

     30,886       —         —         —    

Impairment losses due to credit loss

     28,438       (283,763     (785,133     (834,076

General and administrative expenses

     (1,567,338     (1,538,427     (3,530,801     (3,478,476

Other net operating income (expenses)

     (219,414     201,190       (31,313     (367,779

Non-operating income

     (6,183     (54,280     (207,236     (20,817

Net income before income tax expense from continuing operations

     1,801,532       1,429,948       1,949,506       1,553,389  

Income tax expense from continuing operations

     (485,216     (320,933     (419,418     (275,856

Net income from continuing operations

     1,316,316       1,109,015       1,530,088       1,277,533  

Net income from discontinued operations

     —         —         —         —    

Net income

     1,316,316       1,109,015       1,530,088       1,277,533  

Net income attributable to owners

     1,305,878       1,098,361       1,512,148       1,261,266  

Profit from continuing operations

     1,305,878       1,098,361       1,512,148       1,261,266  

Profit from discontinued operations

     —         —         —         —    

Net income attributable to the non-controlling interests

     10,438       10,654       17,940       16,267  

Profit from continuing operations

     10,438       10,654       17,940       16,267  

Profit from discontinued operations

     —         —         —         —    

Other comprehensive income (loss), net of tax

     7,823       (107,412     (276,796     77,894  

Items that will not be reclassified to profit or loss

     (26,559     (9,677     10,497       34,162  

Items that may be reclassified to profit or loss

     34,382       (97,735     (287,293     43,732  

Total comprehensive income

     1,324,139       1,001,603       1,253,292       1,355,427  

Comprehensive income attributable to the owners

     1,315,322       995,742       1,249,057       1,332,614  

Comprehensive income attributable to non-controlling interests

     8,817       5,861       4,235       22,813  

Net Income Per Share

        

Continuing and discontinued operations

        

Basic earnings per common share

     1,828       1,497       1,999       1,567  

Diluted earnings per common share

     1,828       1,497       1,999       1,567  

Continuing operations

        

Basic earnings per common share

     1,828       1,497       1,999       1,567  

Diluted earnings per common share

     1,828       1,497       1,999       1,567  

 

20


Table of Contents
2.

Condensed Financial Statements (Separate)

Summary Statement of Financial Position

 

(The Bank)    (unit: millions of Won)  

Classification

   1H 2018     2017     2016  

ASSETS

      

Cash and cash equivalents

     5,205,509       5,328,960       6,104,029  

Financial assets at FVTPL (fair value through profit or loss) K-IFRS1109

     4,256,954       —         —    

Financial assets at FVTPL (fair value through profit or loss) K-IFRS1039

     —         4,133,724       4,076,872  

Financial assets at FVTOCI (other comprehensive income)

     13,854,656       —         —    

Available for sale financial assets

     —         14,186,704       18,105,862  

Securities at amortized cost

     17,568,356       —         —    

Held-to-maturity financial assets

     —         16,638,727       13,792,266  

Loans and other financial assets at amortized cost

     256,037,729       —         —    

Loans and receivables

     —         248,810,624       241,508,048  

Investments in subsidiaries and associates

     4,240,906       4,148,795       3,779,169  

Investment properties

     360,075       350,235       348,393  

Premises and equipment

     2,351,035       2,374,590       2,342,280  

Intangible assets

     400,008       303,325       242,230  

Assets held for sale

     15,425       46,183       2,342  

Deferred tax assets

     49,827       238,543       162,211  

Derivative assets

     12,395       59,272       140,577  

Net defined benefit assets

     —         —         70,938  

Other assets

     146,615       117,889       96,926  

Total assets

     304,499,490       296,737,571       290,772,143  

LIABILITIES

      

Financial liabilities at FVTPL (fair value through profit or loss) K-IFRS1109

     2,575,918       —         —    

Financial liabilities at FVTPL (fair value through profit or loss) K-IFRS1039

     —         3,416,978       3,793,479  

Deposits due to customers

     226,726,810       224,384,156       211,382,380  

Borrowings

     13,994,109       13,662,984       16,060,821  

Debentures

     20,091,374       21,707,466       18,166,057  

Provisions

     325,699       368,027       380,473  

Net defined benefit liability

     71,632       14,284       —    

Current tax liabilities

     133,625       212,376       148,672  

Deferred tax liabilities

     —         —         —    

Derivative liabilities

     34,540       12,103       7,221  

Other financial liabilities

     20,224,875       13,029,421       20,827,284  

Other liabilities

     143,143       135,686       153,238  

Total liabilities

     284,321,725       276,943,481       270,919,625  

EQUITY

      

Capital stock

     3,381,392       3,381,392       3,381,392  

Hybrid securities

     2,763,256       3,017,888       3,574,896  

Capital surplus

     269,533       269,533       269,533  

Other equity

     (327,438     (135,282     138,542  

Retained earnings

     14,091,022       13,260,559       12,488,155  

Total equity

     20,177,765       19,794,090       19,852,518  

Total liabilities and equity

     304,499,490       296,737,571       290,772,143  

 

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Summary Statement of Comprehensive Income

 

(The Bank)    (unit: millions of Won, except per share amounts)  

Classification

   1H 2018     1H 2017     2017     2016  

Operating income

     1,623,039       1,298,340       1,790,558       1,270,501  

Net interest income

     2,315,289       2,131,658       4,390,603       4,222,447  

Net fees and commissions income

     526,061       465,850       931,021       842,883  

Dividend income

     40,495       61,736       125,599       220,015  

Net gain or loss on financial instruments at FVTPL (fair value through profit or loss) K-IFRS1109

     107,822       —         —         —    

Net gain or loss on financial instruments at FVTPL (fair value through profit or loss) K-IFRS1039

     —         (137,593     (96,983     97,225  

Net gain or loss on financial assets at FVTOCI

     723        

Net gain or loss on available for sale financial assets

     —         90,238       135,003       35,525  

Net gain or loss arising on financial assets at amortized cost*

     14,853       —         —         —    

Impairment losses due to credit loss

     163,408       (179,904     (553,204     (640,443

General and administrative expenses

     (1,355,859     (1,350,512     (3,128,725     (3,115,371

Other net non-operating income (expenses)

     (189,753     216,867       (12,756     (391,780

Non-operating income

     25,104       (876     (170,336     40,144  

Net income before income tax expense

     1,648,143       1,297,464       1,620,222       1,310,645  

Income tax expense

     (443,328     (293,038     (344,110     (245,043

Net income from continuing operations

     1,204,815       1,004,426       1,276,112       1,065,602  

Net income from discontinued operations

     —         —         —         —    

Net income

     1,204,815       1,004,426       1,276,112       1,065,602  

Other comprehensive income (loss), net of tax

     (6,892     (39,680     (65,666     32,526  

Items that will not be reclassified to profit or loss

     (29,169     (8,949     16,566       33,191  

Items that may be reclassified to profit or loss

     22,277       (30,731     (82,232     (665

Total comprehensive income

     1,197,923       964,746       1,210,446       1,098,128  

Net Income Per Share

     —         —         —         —    

Basic and diluted net income per share

     1,678       1,358       1,648       1,277  

 

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IV.

Compensation to the Independent Auditor

 

1.

Audit Services

 

Term

  

Auditor

  

Description

   Fee    Total Time
1H 2018    Deloitte Anjin LLC    Closing audit    KRW   
      Interim audit (including internal accounting management system)    1,727 million   
      3Q review      
      1H review       8,169 hours
      1Q review       4,010 hours
2017    Deloitte Anjin LLC    Closing audit    KRW    15,883 hours
      Interim audit (including internal accounting management system)    1,786 million    5,827 hours
      3Q review       4,880 hours
      1H review       4,061 hours
      1Q review       4,020 hours
2016    Deloitte Anjin LLC    Closing audit    KRW    7,515 hours
      Interim audit (including internal accounting management system)    1,561 million    4,210 hours
      3Q review       4,991 hours
      1H review       3,526 hours
      1Q review       3,920 hours

 

2.

Non-Audit Service

 

Term

  

Date of
Execution of
Agreement

  

Description of Service

  

Service Term

  

Fees

1H 2018    Apr. 16, 2018    Tax adjustment    Each quarter and end of term    KRW 130 million
   Apr. 16, 2018    PCAOB and SOX Auditing    May 1, 2018 ~ Apr. 30, 2019    KRW 1,463 million
   May. 11, 2018    Issuance of GMTN-related comfort letter    May 2018    USD 100,000
   July 30, 2018    Issuance of GMTN-related comfort letter    July 2018 ~ August 2018    USD 44,000
2017    Mar. 15, 2017    Tax adjustment    Each quarter and end of term    KRW 120 million
   Mar. 15, 2017    PCAOB and SOX Auditing    May 1, 2017 ~ April 30, 2018    KRW 1,288 million
2016    Mar. 28, 2016    Tax adjustment    Each quarter and end of term    KRW 115 million
   Mar. 28, 2016    PCAOB and SOX Auditing    May 1, 2016 ~ Apr. 30, 2017    KRW 1,127 million
   Mar. 23, 2016    Issuance of GMTN-related comfort letter    May 2016    USD 100,000

 

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V.

Corporate Governance and Affiliated Companies

 

1.

About the Board of Directors

 

  a.

Composition of the Board of Directors

The board of directors consists of standing directors, outside directors and non-standing directors.

 

  b.

Committees under the Board of Directors

We currently have the following management committees serving under the board of directors:

 

  (a)

Audit Committee

 

  (b)

Board of Directors Management Committee

 

  (c)

Risk Management Committee

 

  (d)

Compensation Committee

 

  (e)

Committee for Recommending Officer Candidates

As of June 30, 2018

Name of Committee

  

Composition

  

Names of Members

Audit Committee   

Two outside directors,

One standing auditor

  

Sang-Hoon Shin (outside director)

Dong-Woo Chang (outside director)

Jung-Sik Oh (standing director)

Board of directors

management committee

  

One standing director,

Five outside directors

One non-standing director

  

Tae-Seung Sohn (standing director)

Sung-Tae Ro (outside director)

Sang-Hoon Shin (outside director)

Sang-Yong Park (outside director)

Zhiping Tian (outside director)

Dong-Woo Chang (outside director)

Chang-Sik Bae (non-standing director)**

Risk management committee   

Three outside directors

One non-standing director

  

Sung-Tae Ro (outside director)

Sang-Yong Park (outside director)

Zhiping Tian (outside director)

Chang-Sik Bae (non-standing director)**

Compensation committee   

Five outside directors

One non-standing director

  

Sung-Tae Ro (outside director)

Sang-Hoon Shin (outside director)

Sang-Yong Park (outside director)

Zhiping Tian (outside director)

Dong-Woo Chang (outside director)

Chang-Sik Bae (non-standing director)**

Committee for recommending

officer candidates

  

One standing director,

Five outside directors

  

Tae-Seung Sohn (standing director)

Sung-Tae Ro (outside director)

Sang-Hoon Shin (outside director)

Sang-Yong Park (outside director)

Zhiping Tian (outside director)

Dong-Woo Chang (outside director)

 

*

The chairman of the board of directors and the chairmen and members of the committees were appointed at the 17th extraordinary board of directors’ meeting held on December 22, 2017.

**

Non-standing director : Kwang-Woo Choi’s tenure expired and Chang-Sik Bae was newly appointed at the Annual General Meeting of shareholders held on March 23, 2018.

1)

Jan. 1, 2018 ~ Mar.22, 2018 : Kwang-Woo Choi was a member of Board of directors management committee, Risk management committee and Compensation committee

2)

Mar. 22, 2018 ~ Mar.31, 2018 : Chang-Sik Bae is a member of Board of directors management committee, Risk management committee and Compensation committee

 

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2.

Affiliated Companies (as of June 30, 2018)

 

 

LOGO

 

VI.

Shareholder Information

 

1.

Share Distribution

 

a.

Share Information of the Largest Shareholder and Specially Related Parties

 

As of June 30, 2018                            (units: shares, %)

Name

             Shares Held     

Notes

  

Relation

  

Type

   Beginning balance      Ending balance  
             Stock      Share      Stock      Share  

Korea Deposit

Insurance Corporation(KDIC)

  

Largest

Shareholder

   Common      124,604,797        18.43        124,604,797        18.43      Note 1)

Total

      Common      124,604,797        18.43        124,604,797        18.43     
      Others      —          —          —          —       

 

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Note 1) Refer to ‘b. Changes in the largest shareholder’ for changes in the number and percentage of shares held by the KDIC

 

b.

Changes in the largest shareholder

 

As of June 30, 2018                       (units: shares, %)

Change of Date

  

Largest Shareholder

   Stock Held      Share     

Notes

January 1, 2014

   Woori Finance Holdings      596,690,380        100.00     

November 1, 2014

   Korea Deposit Insurance Corporation      385,285,578        56.79      Merger date of Woori Finance Holdings and Woori Bank

December 8, 2014

   Korea Deposit Insurance Corporation      345,142,556        51.04      Sale of stake

October 2, 2015

   Korea Deposit Insurance Corporation      345,142,556        51.06      Change in the share ownership ratio due to the retirement of shares

December 1, 2016

   Korea Deposit Insurance Corporation      239,097,161        35.37     

Sale of stake

(Tongyang Life Insurance,

Eugene Asset Management,

Mirae Asset Global Investments, Korea Investment & Securities)

December 8, 2016

   Korea Deposit Insurance Corporation      185,017,161        27.37     

Sale of stake

(Kiwoom Securities,

Hanwha Life Insurance)

December 14, 2016

   Korea Deposit Insurance Corporation      157,977,161        23.37     

Sale of stake

( IMM PE)

January 31, 2017

   Korea Deposit Insurance Corporation      144,457,161        21.37     

Sale of stake

(IMM PE)

May 11, 2017

   Korea Deposit Insurance Corporation      143,857,161        21.28      Exercise of Shinhan Investment Corp.’s call option (0.09%)

June 16, 2017

   Korea Deposit Insurance Corporation      132,897,007        19.66      Exercise of call option of Employee Stock Ownership Association of Woori Bank (1.62%)

June 22, 2017

   Korea Deposit Insurance Corporation      131,697,007        19.48      Exercise of NH Investment & Securities’ call option (0.18%)

June 27, 2017

   Korea Deposit Insurance Corporation      130,697,007        19.33      Exercise of NH Investment & Securities’ call option (0.15%)

June 28, 2017

   Korea Deposit Insurance Corporation      128,185,796        18.96      Exercise of NH Investment & Securities’ call option ( 0.37%)

July 3, 2017

   Korea Deposit Insurance Corporation      126,935,796        18.78      Exercise of Hyosung Capital’s call option (0.18%)

September 28, 2017

   Korea Deposit Insurance Corporation      125,205,147        18.52      Exercise of call option of Employee Stock Ownership Association of Woori Bank (0.26%)

December 7, 2017

   Korea Deposit Insurance Corporation      124,604,797        18.43      Exercise of call option of Employee Stock Ownership Association of Woori Bank (0.09%)

 

*

Upon the consummation of the merger of Woori Finance Holdings with and into Woori Bank on November 1, 2014, 596,690,380 shares of the Bank were cancelled and 676,278,371 new shares were issued.

 

c.

Share Ownership of More Than 5%

 

As of June 30, 2018                       (units: shares, %)  
    

Name

   Shares      Notes  
   No. of shares      Percentage of shareholding  

Share ownership of more than 5%

   Korea Deposit Insurance Corporation      124,604,797        18.43        —    
   National Pension Service      62,809,267        9.29        Note1
   Nobis1, Inc. (IMM PE)      40,560,000        6.00     

Employee Stock Ownership Association

     38,208,351        5.65        —    

Note1) Number of shares of the National Pension Service is as of Dec.31, 2017

 

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Table of Contents
2.

Stock Price and Stock Market Performance

 

a.

Domestic Stock Market

 

                                             (units: Won, shares)  

Period

  

January

2018

    

February

2018

    

March

2018

    

April

2018

    

May

2018

    

June

2018

 

Common Stock

   High      17,200        17,050        16,400        16,100        15,850        17,100  
   Low      15,650        15,200        14,250        13,700        15,200        15,500  
   Average      16,632        16,403        15,405        14,895        15,563        16,318  

Monthly Trade Volume

   High      2,697,968        8,494,057        3,186,017        4,093,280        2,602,486        5,823,952  
   Low      653,628        780,723        967,071        1,242,179        725,984        847,627  
   Monthly Total      28,679,898        33,505,646        37,831,871        45,951,904        27,919,832        35,615,259  

 

*

Source: KRX KOSPI Market

*

Share prices are based on closing prices.

 

b.

Foreign Stock Market (NYSE)

 

                               (units: US Dollars, Won, ADRs)  

Period

   January
2018
     February
2018
     March
2018
     April
2018
     May
2018
     June
2018
 

ADR

   High      49.04        48.24        45.97        44.72        45.15        47.57  
   Low      44.73        42.63        40.83        38.43        42.66        42.64  
   Average      47.03        45.81        43.72        41.66        43.77        45.11  

Won Conversion

   High      52,531        52,026        49,151        48,127        48,762        51,066  
   Low      47,655        46,372        43,777        40,966        46,042        47,667  
   Average      50,169        49,450        46,865        44,483        47,118        49,292  

Monthly Trade Volume

   High      33,600        30,100        44,100        24,800        19,900        76,400  
   Low      6,100        4,000        4,800        4,800        3,900        6,200  
   Monthly Total      306,500        278,200        316,100        256,900        250,600        447,400  

 

*

Source: standard trading rate (daily and monthly average) (Seoul Money Brokerage, www.smbs.biz)

*

One ADR represents three common shares.

*

Share prices are based on closing prices.

 

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Table of Contents
VII.

Directors and Employee Information

 

1.

Directors

 

 

As of the submission date August 14, 2018             (units: shares)

Position

 

Name

  Common
Stock Owned
   

Term

Commencement Date

 

Expiration of Term

President and CEO

  Registered   Tae-Seung Sohn     15,296     December 22, 2017 ~   December 21, 2020

Standing Member of

Audit Committee

  Registered   Jung-Sik Oh     5,000     March 24, 2017 ~   Note 1)

Outside Director

  Registered   Sung-Tae Ro     5,000     December 30, 2016 ~   December 30, 2018

Outside Director

  Registered   Sang-Hoon Shin     15,000     December 30, 2016 ~   December 30, 2018

Outside Director

  Registered   Sang-Yong Park     1,000     December 30, 2016 ~   December 30, 2018

Outside Director

  Registered   Zhiping Tian     —       December 30, 2016 ~   December 30, 2018

Outside Director

  Registered   Dong-Woo Chang     —       December 30, 2016 ~   December 30, 2018

Non-standing Director

  Registered   Chang-Sik Bae     —       March 23, 2018 ~   Note 2)

Executive Vice President

  Non-Registered   An-Ho Jang     —       December 22, 2017 ~   December 8, 2018

Executive Vice President

  Non-Registered   Woon-Haeng Cho     —       December 22, 2017 ~   December 8, 2018

Executive Vice President

  Non-Registered   Seong-Il Park     —       February 3, 2017 ~   December 3, 2019

Executive Vice President

  Non-Registered   Sun-Kyu Kim     —       February 3, 2017 ~   December 8, 2018

Executive Vice President

  Non-Registered   Yeong-Bae Kim     —       December 22, 2017 ~   December 8, 2018

Executive Vice President

  Non-Registered   Jeong-Jin Heo     —       December 22, 2017 ~   December 8, 2018

Executive Vice President

  Non-Registered   Dong-Yeon Lee     9,000     December 22, 2017 ~   December 8, 2018

Executive Vice President

  Non-Registered   Hyun-Poong Hong     —       December 22, 2017 ~   December 8, 2018

Executive Vice President

  Non-Registered   Chai-Pong Cheong     —       December 22, 2017 ~   December 8, 2018

Executive Vice President

  Non-Registered   Chang-Jae Lee     —       December 22, 2017 ~   December 8, 2018

Executive Vice President

  Non-Registered   Jeong-Ki Kim     —       December 22, 2017 ~   December 8, 2018

Managing Director

  Non-Registered   Tae-Joong Ha     —       February 3, 2017 ~   December 8, 2018

Managing Director

  Non-Registered   Jong-In Lee     —       February 3, 2017 ~   December 3, 2019

Managing Director

  Non-Registered   Won-Duk Lee     2,000     February 3, 2017 ~   December 8, 2018

Managing Director

  Non-Registered   Hong-Sik Choi     —       December 22, 2017 ~   December 8, 2019

Managing Director

  Non-Registered   Su-Hyeong Cho     —       December 22, 2017 ~   December 8, 2019

Managing Director

  Non-Registered   Hwa-Jae Park     2,000     December 22, 2017 ~   December 8, 2019

Managing Director

  Non-Registered   Myung-Hyuk Shin     1,000     December 22, 2017 ~   December 8, 2019

Managing Director

  Non-Registered   Dong-Su Choi     —       December 22, 2017 ~   December 8, 2019

Managing Director

  Non-Registered   Jong-Suk Jeong     5,005     December 22, 2017 ~   December 8, 2019

Managing Director

  Non-Registered   Kyong-Hoon Park     —       December 22, 2017 ~   December 8, 2019

Managing Director

  Non-Registered   Jong-Deuk Kim     2,000     December 22, 2017 ~   December 8, 2019

Managing Director

  Non-Registered   Dae-Jin Lee     —       February 3, 2017 ~   December 8, 2018

Note 1) The end of the annual general meeting of shareholders to be held in March 2019

Note 2) The end of the annual general meeting of shareholders to be held in March 2020

Note 3) Common stock owned by executives exclude stocks owned through the Employee Stock Ownership Association

Note 4) Term Commencement Date: The date of inauguration for registered directors, the date of appointment for non-registered directors

 

2.

Employee Status

 

As of June 30, 2018                                         (units: persons, millions of Won)  
     Number of Employees      Average
Tenure
Years
     Total
Compensation
     Average
Compensation

Per Person
     Note  
   Regular      Contract      Total  
   Total      (Short time
worker)
     Total      (Short time
worker)
 

Total

     14,024        285        583        47        14,607        16.7        727,405        50     

 

*

Average years of continuous service excludes contract employees and locally hired employees overseas.

*

Excludes management salaries (sales center head or higher) and overseas salaries.

*

When excluding amount decided in 2017 and paid in 2018 1Q, cumulative compensation is 644,636 million KRW (Average compensation per person is 44 million KRW)

 

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3.

Directors’ Compensation

 

As of June 30, 2018           (units: persons, millions of Won)  

Items

   Number of
Persons
     Total
Compensation
     Average
Compensation

Per Director
     Note  

Registered Directors (excludes outside directors and audit committee members)

     3        519        173        —    

Outside Directors (excludes audit committee members)

     3        92        31        —    

Audit Committee Members

     3        308        103        —    

Total

     9        919        102        —    

 

*

Number of persons: includes the outside directors and audit committee members that resigned in 2018

(as of June 30, 2018, there are two registered directors, three outside directors and three members of the Audit Committee)

*

There is no compensation paid to the non-standing director from the KDIC, who has been excluded from number of persons

*

Total compensation: cumulative amount paid from January to June of 2018

 

VIII.

Related Party Transactions

Extensions of Credit to Major Shareholders, Etc.

 

As of June 30, 2018                   (unit: millions of Won)

Name

  

Item

  

Current Balance

  

Origination Date

  

Maturity Date

Korea Deposit

Insurance Corporation

   Loans    250,000    August 29, 2016    August 28, 2018
   Loans    500,000    August 29, 2016    August 28, 2018
   Bonds    29,999    January 22, 2013, etc.    January 22, 2018, etc. *
Woori Investment Bank    Loans    25,000    March 10, 2016    March 4, 2019
   CMA    100,000    July 1, 2017    June 30, 2018
Woori Card    Loans    100,000    March 2, 2018    March 4, 2019
Woori P&S    Loans    12,000    May 25, 2016    May 25, 2026
   Loans    600    November 28, 2017    November 28, 2018

 

*

repaid at maturity.

 

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

   

Woori Bank

    (Registrant)
Date: August 14, 2018    

By: /s/ Won Duk Lee

    (Signature)
    Name: Won Duk Lee
    Title: Managing Director

 

30