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 2014

 

 

Woori Finance Holdings Co., Ltd.

(Translation of Registrant’s name into English)

 

 

51, Sogong-ro, Jung-gu, Seoul, 100-792, 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   x             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

Index

 

1. Summary of 2014 First Half Business Report

  
2. Exhibit 99.1 Woori Finance Holdings Co., Ltd. Review Report for 2014 2Q (Consolidated)   
3. Exhibit 99.2 Woori Finance Holdings Co., Ltd. Review Report for 2014 2Q (Separate)   

 

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Table of Contents

Summary of 2014 First Half Business Report

Table of Contents

 

I.

   COMPANY OVERVIEW      5   
   1.    Purpose of the Company      5   
   2.    History of the Company      6   
   3.    Capital Structure      12   
   4.    Total Number of Authorized Shares      13   
   5.    Voting Rights      13   
   6.    Dividend Information      14   

II.

  

DESCRIPTION OF BUSINESS

     15   
   1.    Business Overview      15   
   2.    Overview of Operations      15   
   3.    Other Information Relevant to Investment Decisions      18   

III.

  

FINANCIAL INFORMATION

     23   
   1.    Condensed Financial Statements (Separate)      23   
   2.    Condensed Financial Statements (Consolidated)      24   

IV.

  

INDEPENDENT AUDITOR’S OPINION

     26   
   1.    Independent Auditor’s Opinion      26   
   2.    Compensation to the Independent Auditor for the Past Three Years      27   

V.

  

CORPORATE GOVERNANCE AND AFFILIATED COMPANIES

     28   
   1.    About the Board of Directors      28   
   2.    Related Companies      32   
   3.    Investments in Other Companies      33   

VI.

  

STOCK INFORMATION

     34   
   1.    Stock Distribution      34   
   2.    Stock Price and Stock Market Performance for the Past Six Months      35   

VII.

  

DIRECTORS AND EMPLOYEE INFORMATION

     36   

 

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   1.    Directors      36   
   2.    Employee Status      36   
   3.    Directors’ Compensation      36   

VIII.

  

RELATED PARTY TRANSACTIONS

     37   
   1.    Transactions with Affiliated Parties      37   

Except where indicated otherwise, financial information contained in this document (including the attached financial statements) have 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 Finance Holdings,” “we,” “us” or the “Company” are to Woori Finance Holdings Co., Ltd. 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.

 

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Table of Contents
I. Company Overview

 

1. Purpose of the Company

 

a. Scope of Business

Acquisition/ownership of shares in companies that are engaged in financial services or are closely related to financial services, as well as the governance and/or management of such companies.

 

  (1) Corporate Management

 

  1. Setting management targets for and approving business plans of the subsidiaries;

 

  2. Evaluation of the subsidiaries’ management performance and establishment of compensation levels;

 

  3. Formulation of corporate governance structures of the subsidiaries;

 

  4. Inspection of operation and assets of the subsidiaries; and

 

  5. Other activities complementary to the items mentioned in numbers 1 to 4.

 

  (2) Corporate Management Support Activities

 

  1. Funding for the affiliate companies (including direct and indirect subsidiaries, the “Affiliates”);

 

  2. Capital investment in subsidiaries or procurement of funds for the Affiliates; and

 

  3. Activities ancillary to the above items.

 

b. Scope of Business of Subsidiaries

 

  (1) Woori Bank:

 

  1. Banking business as prescribed by the Banking Act;

 

  2. Trust business;

 

  3. Foreign exchange business; and

 

  4. Other authorized businesses.

 

  (2) Woori Card: credit card business

 

  (3) Woori Investment Bank: merchant banking business

 

  (4) Woori Private Equity: private equity business.

 

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  (5) Woori FIS: finance-related IT services.

 

  (6) Woori Finance Research Institute: research relating to finance and banking

 

2. History of the Company

 

a. Company History

 

  (1) Background: Major developments.

 

March 27, 2001    Woori Finance Holdings was incorporated
April 2, 2001    Commenced commercial operations
June 24, 2002    Became listed on the Korea Exchange
September 29, 2003    Became listed on the New York Stock Exchange
March 30, 2004    Appointment of new management
March 31, 2004    Woori Card merged into Woori Bank
June 18, 2004    Woori Securities became a wholly-owned subsidiary
December 21, 2004    Capital increase through conversion of CBs (Total capital after conversion: Won 4.0 trillion)
December 24, 2004    Acquired LG Investment & Securities and incorporated as a subsidiary
February 17, 2005    Capital increase through conversion of CBs (Total capital after conversion: Won 4.0 trillion)
March 11, 2005    Capital increase through conversion of CBs (Total capital after conversion: Won 4.0 trillion)
March 31, 2005    Woori Securities and LG Investment & Securities merged (the name of the surviving entity, LG Investment & Securities, changed to Woori Investment & Securities)
May 6, 2005    LG Investment Trust Management changed from 2nd tier subsidiary to 1st tier subsidiary
May 31, 2005    Woori Investment Trust Management and LG Investment Trust Management merged (the name of the surviving entity, LG Investment Trust Management, changed to Woori Asset Management)
August 3, 2005    Dissolution of Woori LB Second Asset Securitization Specialty Co., Ltd.

 

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September 5, 2005    Woori Asset Management became a wholly-owned subsidiary through capital reduction and cancellation
October 21, 2005    Woori Private Equity was established and incorporated as a subsidiary
October 27, 2005    Closure of strategic investment agreement with Lehman Brothers
February 23, 2006    Joint venture arrangement between Woori CA Asset Management, a 2nd tier subsidiary, and Japan’s Shinsei Bank (involving a transfer of 49% of Woori F&I’s 100% stake in Woori CA Asset Management to Shinsei Bank)
April 11, 2006    Joint venture agreement to transfer 30% of the shares of Woori Asset Management to Credit Suisse Asset Management International Holdings, a wholly owned subsidiary of Credit Suisse.
May 30, 2006    Upon the 30% share transfer to Credit Suisse Asset Management International Holdings, Woori Asset Management was renamed Woori Credit Suisse Asset Management.
March 30, 2007    Appointment of new management
September 14, 2007    Acquired Hanmi Capital as a subsidiary (Hanmi Capital was renamed Woori Financial as of October 26, 2007)
April 4, 2008    Acquired LIG Life Insurance as a subsidiary (LIG Life Insurance was renamed Woori Aviva Life Insurance as of April 1, 2008)
June 27, 2008    Appointment of new management
April 29, 2009    Termination of joint venture with Credit Suisse regarding Woori Credit Suisse Asset Management. Renamed “Woori Asset Management” (May 30, 2009)
October 28, 2009    Acquired the remaining 30% equity stake in Woori Credit Suisse Asset Management from Credit Suisse Asset Management International Holding and completed the establishment of Woori Asset Management as our wholly-owned subsidiary
December 30, 2009    Dissolution of Woori LB Third Asset Securitization Specialty Co., Ltd.
March 11, 2010    MOU with National Bank of Abu Dhabi Group

 

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March 16, 2011    Woori FG Savings Bank Co., Ltd. was incorporated as a wholly-owned subsidiary
October 5, 2011    Kwangju Bank and Kyongnam Bank became wholly-owned subsidiaries
November 29, 2011    Acquired additional shares of Woori Investment & Securities to increase our equity stake (based on common stock) to 37.85%
July 30, 2012    Acquired additional shares of Woori Financial to change our equity stake to 52.02%
October 9,2012    Disclosed Woori Finance Research Institute is incorporated as a wholly-owned subsidiary
April 1, 2013    Woori Card was incorporated as a wholly-owned subsidiary following a spin-off from Woori Bank.
June 14,2013    Appointment of new management
June 21,2013    Acquired Kumho Investment Bank as a subsidiary upon our acquisition of a [41.6]% equity stake. Changed company name to Woori Investment Bank on October 2, 2013.
March 20, 2014    Disaffiliation of Woori Financial from Woori Finance Holdings as a result of the sale of Woori Finance Holdings’ equity stake in Woori Financial
May 1, 2014    Disafilliation of Kwangju Bank and Kyongnam Bank as a result of a spin-off from Woori Finance Holdings
May 2, 2014    Disaffiliation of Woori Asset Management from Woori Finance Holdings as a result of the sale of Woori Finance Holdings’ equity stake in Woori Asset Management
May 7, 2014    Disaffiliation of Woori F&I from Woori Finance Holdings as a result of the sale of Woori Finance Holdings’ equity stake in Woori F&I
June 17, 2014    Acquired additional shares of Woori Investment Bank to increase our equity stake to 58.15%
June 27, 2014    Disaffiliation of Woori Investment & Securities, Woori Aviva Life Insurance, Woori FG Savings Bank as a result of the sale of Woori Finance Holdings’ equity stake in the three subsidiaries

 

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Table of Contents
b. Associated Business Group

 

  (1) Overview of Business Group

 

  1. Name of business group: Woori Financial Group

 

  (2) Related companies within the business group

As of June 30, 2014

 

Type

  

Name of Company

  

Controlling
Company

  

Notes

Holding Company    Woori Finance Holdings    Korea Deposit Insurance Corporation    1 company

1st Tier Subsidiaries

   Woori Bank    Woori Finance Holdings    6 companies
   Woori Card      
   Woori Investment Bank      
   Woori FIS      
   Woori Private Equity      
   Woori Finance Research Institute      

2nd Tier Subsidiaries

   Woori Credit Information    Woori Bank    12 companies
   Woori America Bank      
   P.T. Bank Woori Indonesia      
   Korea BTL Infrastructure Fund      
   Woori Global Markets Asia Ltd.      
   Woori Bank (China) Limited      
   ZAO Woori Bank      
   Woori Fund Service      
   Woori Bank Brasil      
  

 

Woori Private Equity Fund

   Woori Private Equity   
   Woori Blackstone Korea Opportunity Private Equity Fund No.1      
   Woori Columbus Private Equity Fund No.1      

 

* Woori Finance Holdings, and Woori Investment Bank are listed on the KRX KOSPI Market
* On September 25, 2012, Woori Bank Brasil was included as our 2nd tier subsidiary. Woori Bank owns a 100% (less one share) stake in Woori Bank Brasil.
* On November 2, 2012, Woori Columbus Private Equity Fund No.1, to which Woori Asset Management contributed 1.96% of the capital and serves as its general partner, was included as our 2nd tier subsidiary.
* On December 26, 2012, Woori Finance Research Institute was incorporated and became our wholly-owned subsidiary.
* On April 1, 2013, Woori Card was added as our 1st tier subsidiary.
* On June 21, 2013, the inclusion of Kumho Investment Bank as our 1st tier subsidiary was approved by the Financial Services Commission, and Two Eagles KIB LLC and Two Eagles LLC, both controlled by Kumho Investment Bank, were also included as our 2nd and 3rd tier subsidiaries, respectively.
* On March 20, 2014, Woori Financial Co., Ltd. was disaffiliated from Woori Finance Holdings as a result of the sale of Woori Finance Holdings’ equity stake to KB Financial Group.
* On April 29, 2014, Two Eagles KIB LLC & Two Eagles LLC were removed from our list of subsidiaries.
* On May 1, 2014, Kwangju Bank and Kyongnam Bank disaffiliated from Woori Finance Holdings as a result of a spin-off
* On May 2, 2014, Woori Asset Management was disaffiliated from Woori Finance Holdings as a result of the sale of Woori Finance Holdings’ equity stake to Kiwoom Securities. The related 2nd tier subsidiaries, POSCO Woori EIG Global Private Equity Fund, KEPCO Woori Sprott Global PEF, KEPCO Woori Sprott Global Overseas Resource Development PEF, were also removed from our list of subsidiaries.

 

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* On May 7, 2014, Woori F&I was disaffiliated from Woori Finance Holdings as a result of the sale of Woori Finance Holdings’ equity stake to Daishin Securities. The related fourty-two 2nd tier subsidiaries, including Woori AMC, were also removed from our list of subsidiaries.
* On June 27, 2014, Woori Investment & Securities Co., Ltd., was disaffiliated from Woori Finance Holdings as a result of the sale of Woori Finance Holdings’ equity stake to NongHyup Financial Group Inc. The related fourteen 2nd tier subsidiaries, including Woori Futures, were also removed from our list of subsidiaries.
* On June 27, 2014, Woori Aviva Life Insurance Co., Ltd., was disaffiliated from Woori Finance Holdings as a result of the sale of Woori Finance Holdings’ equity stake to NongHyup Financial Group Inc.
* On June 27, 2014, Woori FG Savings Bank was disaffiliated from Woori Finance Holdings as a result of the sale of Woori Finance Holdings’ equity stake to NongHyup Financial Group Inc.

 

c. Consolidated Subsidiaries

(As of June 30, 2014)

 

Name of Company

  

Business Activities

   Total Assets (2013)
(unit: in millions of Won)
 

Woori Bank

   Banking      243,686,166   

Woori Card

   Credit Card      4,679,202   

Woori Asset Management

   Collective Investment      85,169   

Woori FIS (former Woori Finance Information System)

   Financial Information Technology      332,223   

Woori Private Equity

   Other Financial      41,290   

Woori FG Savings Bank

   Banking      822,887   

Woori Investment Bank (former Kumho Investment Bank)

   Merchant Banking      860,226   

Woori Finance Research Institute

   Other Financial      3,739   

Woori Credit Information

   Debt Collection and Credit Rating      31,414   

Woori America Bank

   Banking      1,228,163   

P.T. Bank Woori Indonesia

   Banking      666,804   

Woori Global Markets Asia Ltd.

   Banking      184,475   

Woori Bank (China) Limited

   Banking      3,414,199   

ZAO Woori Bank

   Banking      201,035   

Woori Bank Brasil

   Banking      143,993   

Korea BTL Infrastructure Fund

   Other Financial      651,973   

Woori Fund Service Co., Ltd.

   Other Financial      2,694   

Kumho Trust 1st Co., Ltd.

   Other Financial      69,430   

Woori IB Global Bond Co., Ltd

   Other Financial      208,385   

Connsus Eighth Co., Ltd.

   Other Financial      16   

Asiana Saigon Co., Ltd.

   Other Financial      45,151   

An-Dong Raja 1st Co., Ltd.

   Other Financial      12,222   

KAMCO Value Recreation 1st Securitization Specialty Co., Ltd

   Other Financial      61,240   

Hermes STX Co., Ltd.

   Other Financial      179   

BWL First Co., LLC

   Other Financial      79,784   

 

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Table of Contents

Name of Company

  

Business Activities

   Total Assets (2013)
(unit: in millions of Won)
 

Woori Poongsan Co., Ltd

   Other Financial      41,880   

Pyeongtaek Ocean Sand Co., Ltd.

   Other Financial      44,822   

Heights Third Co., Ltd

   Other Financial      607   

Jeonju Poomglim iWant

   Other Financial      186   

Wonju Poomglim iWant

   Other Financial      9   

Deogi Dream Fourth Co., Ltd

   Other Financial      348   

W Synergy 1st Co., Ltd.

   Other Financial      9,203   

New Year Eighth Co., Ltd.

   Other Financial      —     

Heoreum Short-Term 15 th

   Other Financial      58   

G5 Pro Short-Term 13th

   Other Financial      489   

G6 First Class Mid-Term E-203

   Other Financial      1   

G15 First Class Mid-Term C-151

   Other Financial      4   

D First Class Mid-term C-151

   Other Financial      3   

Woori Milestone Private Real Estate Fund 1st

   Other Financial      302   

Consus Sakhalin Real Estate Investment Trust 1st

   Other Financial      59,391   

Woori Partner Plus Private Equity Securities 4th

   Other Financial      409,539   

Hyundai Platinum Private Equity Securities W-3

   Other Financial      50,636   

Phoenix Sky Private Equity Securities 15th

   Other Financial      20,253   

Samsung Plus Private Equity Securities 24th

   Other Financial      50,569   

HDC Private Equity Securities Investment Trust 10th

   Other Financial      50,579   

ING Lion Private Equity Securities 47th

   Other Financial      50,565   

LS Leading Solution Private Equity Securities 126th Bond

   Other Financial      50,602   

Shinhan BNP Corporate Private Equity Securities 32nd

   Other Financial      50,526   

Hyundai Advantage Private Equity Securities 17th

   Other Financial      9,773   

Mirae Asset Triumph Private Equity Securities 21st

   Other Financial      50,464   

Meritz Prime Private Equity Securities 95th

   Other Financial      50,547   

Hi Good Choice Private Equity Securities 8th

   Other Financial      20,201   

HDC Private Equity Securities Investment Trust 11th

   Other Financial      20,199   

Woori Partner Plus Private Equity Securities 13th

   Other Financial      301,722   

Phoenix Sky Private Equity Securities 16th

   Other Financial      50,217   

Hanwha Private Equity Securities Investment Trust 65th

   Other Financial      51,212   

Hanwha Private Equity Securities No. 67 (Bond)

   Other Financial      51,034   

HDC New Star Private Equity Securities 24th

   Other Financial      —     

Hana UBS Private Equity Securities 8th

   Other Financial      —     

Eugene Jarang Private Equity Securities 40th

   Other Financial      —     

LS Leading Solution Private Equity Securities 129th

   Other Financial      —     

Kyobo Axa Active Long Short 30 Private Equity 1st

   Other Financial      —     

KB Market Long Short Private Equity Securities 1st

   Other Financial      —     

Yuri WB Private Equity Securities Investment Trust 7th

   Other Financial      —     

IBK Panorama Private Equity Securities 54th

   Other Financial      —     

Heungkuk Multi Private Equity Securities H-8

   Other Financial      —     

Hyundai Platinum Private Equity Securities W-4

   Other Financial      —     

Hyundai Smart Dream Private Equity Securities 14th

   Other Financial      —     

Mirae Asset Triumph Private Equity 26th

   Other Financial      —     

Hyundai Platinum Private Equity Securities W-5

   Other Financial      —     

LS Leading Solution Private Equity Securities 133rd

   Other Financial      —     

KDB Private Equtiy Securities Investment Trust WB-6

   Other Financial      —     

Shinhan BNPP Corporate Private Equity Securities 37th

   Other Financial      —     

NH-CA New Private Equity Securities Investment Trust 12-63

   Other Financial      —     

Eugene Jarang Private Equity Securities 43rd

   Other Financial      —     

Yuri WB Private Equity Securities 8th

   Other Financial      —     

Mirae Asset Triumph Private Equity Securities 29th

   Other Financial      —     

Yuri WB Private Equity Securities9th

   Other Financial      —     

Asset Plus Private Equity Securities Investment Trust 18th

   Other Financial      —     

Woori Bank Principal Protected Trust

   Other Financial      1,389,082   

 

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Name of Company

  

Business Activities

   Total Assets (2013)
(unit: in millions of Won)
 

Woori Private Equity Fund

   Private Equity Investment      45,129   

Woori EL Co., Ltd.

   Other Financial      27   

MyAsset Manhattan Private Equity Real Estate Trust 1st

   Beneficiary Certificates      170   

Sahn Eagle LLC

   Other Financial      7,092   

 

3. Capital Structure

 

a. Changes in Capital

(units: Won, shares)

 

          Stock Decrease/Increase

Date

  

Category

   Type    Quantity    Par Value    Issue price    Note

2001.3.27

   Establishment    Common    727,458,609    5,000    5,000    —  

2002.5.31

   Exercise B/W    Common    165,782    5,000    5,000    —  

2002.6.12

   Capital increase w/ consideration    Common    36,000,000    5,000    6,800    Capital
contribution
ratio:
0.0494

2002.6.30

   Exercise B/W    Common    1,416,457    5,000    5,000    —  

2002.9.30

   Exercise B/W    Common    2,769,413    5,000    5,000    —  

2002.12.31

   Exercise B/W    Common    4,536    5,000    5,000    —  

2003.3.31

   Exercise B/W    Common    1,122    5,000    5,000    —  

2003.6.30

   Exercise B/W    Common    7,688,991    5,000    5,000    —  

2004.6.18

   Stock Exchange    Common    8,571,262    5,000    8,902    Exchange
with Woori
Sec shares
on a 1-to-
0.55 basis

2004.11.4

   Exercise CB    Common    666,301    5,000    5,380    —  

2004.12.2

   Exercise CB    Common    7,995,613    5,000    5,380    —  

2004.12.21

   Exercise CB    Common    3,717,472    5,000    5,380    —  

2005.2.17

   Exercise CB    Common    3,481,173    5,000    5,588    —  

2005.3.11

   Exercise CB    Common    5,914,180    5,000    7,313    —  

2005.3.11

   Exercise CB    Common    164,429    5,000    7,228    —  

2014. 5. 1

   Reduction of Capital    Common    129,736,969    5,000    5,135    Spin-off of
regional
banks

 

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b. Convertible Bonds

Not applicable

 

4. Total Number of Authorized Shares

 

a. Total Number of Authorized Shares

 

As of June 30, 2014    (unit: shares)

 

     Type  

Items

   Common Shares      Total  

Total number of shares authorized

     2,400,000,000         2,400,000,000   

Total number of issued stock

     806,015,340         806,015,340   

Treasury stock

     29,157         29,157   

Free float shares

     676,249,214         676,249,214   

 

b. Treasury Stock

 

As of June 30, 2014    (unit: shares)

 

Acquisition

Method

   Type of
Stock
   Beg.      Acquired      Disposal      Canceled    End      Remarks

Direct purchase under Sub-section 1, section 165-2 of the Financial Investment Services and Capital Markets Act

   Common
Preferred
                 

Direct purchase other than under Sub-section 1, section 165-2 of the Financial Investment Services and Capital Markets Act

   Common
Preferred
     2,000         27,480         -323            29,157      

Subtotal

   Common
Preferred
     2,000         27,480         -323            29,157      

Indirect acquisition from trust agreement

   Common
Preferred
                 

Total

   Common
Preferred
     2,000         27,480         -323            29,157      

 

5. Voting Rights

 

As of June 30, 2014    (unit: shares)

 

Items

        Number of stock      Notes

Total number of shares

   Common Shares      676,278,371      
   Preferred Shares      

Stocks without voting rights

   Common Shares      
   Preferred Shares      

Stocks with limited voting rights under Korean Securities & Exchange Law

   —        29,157      

Stocks with voting rights restored

   —        

Stocks with voting rights

   Common Shares      676,249,214      
   Preferred Shares      

 

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6. Dividend Information

 

a. Dividend information for the past three years

 

Items

   2013      2012      2011  

Par value per share (Won)

     5,000         5,000         5,000   

Net profit (Won in Millions)

     -537,688         1,583,580         2,136,828   

Earnings per share (Won)

     -667         1,965         2,651   

Total cash payout (Won in Millions)

     0         201,503         201,503   

Total stock dividends (Won in Millions)

           

Cash dividend payout ratio (%)

     0         12.72         9.43   

Cash dividend yield (%)

   Common Shares
Preferred Shares
     0         2.1         2.6   

Stock dividend yield (%)

   Common Shares
Preferred Shares
        

Cash dividend per share (Won)

   Common Shares
Preferred Shares
     0         250         250   

Stock dividend per share (Won)

   Common Shares
Preferred Shares
        

 

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II. Description of Business

 

1. Business Overview

 

a. Business Overview

(As of June 30, 2014)

 

Business Area

  

Business Scope

  

Subsidiary

Banking    Lending, deposit taking and related business    Woori Bank
Credit Finance    Credit cards, cash advance, and credit card loans    Woori Card
Investment Banking    Merchant banking business related to lending, deposit taking, international finance, lease finance, and securities    Woori Investment Bank
IT    IT service business, including financial IT system development, sales and maintenance    Woori FIS
Private Equity    Investment advisory and private equity fund management business    Woori Private Equity
Other    Financial, economic and industry research    Woori Finance Research Institute

 

2. Overview of Operations

 

a. Performance of Operations

As a financial holding company under the Financial Holding Company Act, our main income consists of dividend payments made to us by our subsidiaries. We are not involved in any other operations.

 

b. Financing of Operations

 

  (1) Source of Funds

(unit: in millions of Won)

 

          2014 1H      2013      Change  
          Avg. Balance      %      Avg. Balance      %      Avg. Balance     %  

Won Currency

   Deposits      1,625,585         52.10         1,854,339         55.69         (228,754     (3.59
   CD      29,757         0.95         29,099         0.87         658        0.08   
   Borrowings      72,724         2.33         231,466         6.95         (158,742     (4.62
   Call Money      17,448         0.56         26,216         0.79         (8,768     (0.23
   Others      377,833         12.11         503,094         15.11         (125,261     (3.00
  

Sub-Total

     2,123,347         68.06         2,644,214         79.41         (520,867     (11.35

Foreign Currency

   Deposits      116,980         3.75         115,576         3.47         1,404        0.28   
   Borrowings      77,343         2.48         103,721         3.11         (26,378     (0.63
   Debentures      54,080         1.73         52,407         1.57         1,673        0.16   
   Others      11,764         0.38         12,554         0.38         (790     0.00   
  

Sub-Total

     260,167         8.33         284,258         8.54         (24,091     (0.21

Others

   Total Capital      209,942         6.73         233,209         7.00         (23,267     (0.27
  

Reserves

     6,846         0.22         10,206         0.31         (3,360     (0.09
  

Others

     0         0.00         0         0.00         0        0.00   
  

Sub-Total

     216,788         6.95         243,415         7.31         (26,627     (0.36

Liabilities associated with disposal group held for sale1)

        205,953         6.60         64,095         1.92         141,858        4.68   

Liabilities associated with disposal group held for distribution to owners1)

        313,780         10.06         93,765         2.82         220,015        7.24   

Source of Funds Total

        3,120,035         100.00         3,329,747         100.00         (209,712     0.00   

 

* Consolidated basis

 

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1) Sale and Spin-off completed during the first half of 2014

(unit: in millions of Won)

 

Items

   2014 1H      2013      2012  

Shareholders’ Equity

     12,178,050         13,744,606         14,571,676   

Capital

     3,381,392         4,030,077         4,030,077   

Hybrid Securities

     498,407         498,407         498,407   

Capital Surplus

     91,475         109,026         109,026   

Retained Earnings

     9,692,446         9,108,368         9,935,633   

Capital Adjustments

     -1,485,670         -1,272         -1,467   

Borrowings

     3,771,694         4,237,306         3,874,928   

Debentures

     3,545,001         3,684,958         3,654,276   

Bank Borrowings

     —           —           —     

Commercial Paper

     —           —           —     

Other Borrowings

     —           —           —     

Other Liabilities

     226,693         552,348         220,652   

Total

     15,949,744         17,981,912         18,446,604   

 

* Separate basis
* 179,933 million won of debentures in 2013, relating to the regional bank spin-offs, was classified as liabilities directly associated with disposal group held for distribution.

 

  (2) Use of Funds

(unit: in millions of Won)

 

          2014 1H     2013      Change  
          Avg. Balance     %     Avg. Balance     %      Avg. Balance     %  

Won Currency

   Deposits      84,964        2.72        135,677        4.07         (50,713     (1.35
   Securities      329,224        10.55        526,207        15.80         (196,983     (5.25
   Loans      1,645,994        52.76        1,893,350        56.86         (247,356     (4.10
   Call Loans      34,020        1.09        25,624        0.77         8,396        0.32   
   Private placement bonds      4,985        0.16        10,653        0.32         (5,668     (0.16
   Credit Card      43,951        1.41        42,457        1.28         1,494        0.13   
   Others      127,646        4.09        207,793        6.24         (80,147     (2.15
   Loan loss reserves      (28,717     (0.92     (33,786     D1.01         5,069        0.09   
  

Sub-Total

     2,242,067        71.86        2,807,975        84.33         (565,908     (12.47

Foreign Currency

   Deposits      39,233        1.26        36,011        1.08         3,222        0.18   
   Securities      3,914        0.13        11,836        0.36         (7,922     (0.23
   Loans      166,029        5.32        181,520        5.45         (15,491     (0.13
   Bills bought      49,698        1.59        49,851        1.50         (153     0.09   
   Others      3,964        0.13        5,730        0.17         (1,766     (0.04
  

Sub-Total

     262,838        8.42        284,948        8.56         (22,110     (0.14

Others

   Cash      32,220        1.03        35,485        1.07         (3,265     (0.04
  

Tangible Assets

     25,067        0.80        30,565        0.92         (5,498     (0.12
  

Others

     0        0.00        0        0.00         0        0.00   
  

Sub-Total

     57,287        1.84        66,050        1.98         (8,763     (0.14

Disposal group held for sale1)

     221,973        7.11        70,149        2.11         151,824        5.00   

Disposal group held for distribution to owners1)

     335,870        10.76        100,625        3.02         235,245        7.74   

Use of Funds Total

     3,120,035        100.00        3,329,747        100.00         (209,712     0.00   

 

* Consolidated basis

 

1) Sale and Spin-off completed during the first half of 2014

(unit: in millions of Won)

 

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Items

   2014 1H      2013      2012  

Subsidiary Stock

     13,831,963         17,739,535         17,976,325   

Woori Bank

     12,848,076         12,848,076         13,621,824   

Kyongnam Bank1)

     —           1,443,661         1,443,661   

Kwangju Bank1)

     —           976,291         976,291   

Woori FIS

     35,013         35,013         35,013   

Woori F&I1)

     —           206,563         206,563   

Woori Investment & Securities 1)

     —           953,210         1,036,749   

Woori Asset Management1)

     —           67,456         67,456   

Woori Private Equity

     34,246         34,246         34,246   

Woori Financial1)

     —           238,575         238,575   

Woori Aviva Life Insurance1)

     —           36,317         102,946   

Woori FG Savings Bank1)

     —           53,730         210,000   

Woori Finance Research Institute

     3,000         3,000         3,000   

Woori Card

     773,748         773,748         —     

Woori Investment Bank

     137,881         69,648         —     

Investment Securities

     4         —           —     

Loan Obligations

     —           998         995   

Tangible Assets

     225         288         389   

Intangible Assets

     49         44         33   

Cash

     1,890,347         67,380         236,400   

Other Assets

     227,156         173,667         232,462   

Total

     15,949,744         17,981,912         18,446,604   

 

* Separate basis
* 21,856 million won of cash in 2013, relating to the regional bank spin-offs, was classified as disposal group held for distribution assets on the separate statements of financial position.
* Woori F&I, Woori Investment & Securities, Woori Financial, Woori Asset Management, Woori Aviva Life Insurance and Woori FG Savings Bank , in connection with the sale of the investment & securities unit, were classified as disposal group held for sale assets in 2013
1) Sale and Spin-off completed during the first half of 2014

 

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3. Other Information Relevant to Investment Decisions

 

a. Selected Ratios

Won-denominated Current Ratio

(unit: in millions of Won)

 

Items

   2014 1H     2013     2012  

Current Assets (A)

     1,893,651        67,852        222,671   

Current Liabilities (B)

     9,748        10,889        33,580   

Current Ratio(2) (A/B)

     19,425.15     623.11     663.11

 

* Separate basis
* Current ratio is calculated as the ratio of (i) Won-denominated assets with maturity of less than 1 month to (ii) Won-denominated liabilities with maturity of less than 1 month.

Debt Ratio

(unit: in millions of Won)

 

Items

   2014 1H     2013     2012  

Liabilities (A)

     3,771,694        4,237,306        3,874,928   

Equity (B)

     12,177,067        13,744,539        14,571,676   

Debt Ratio (A/B)

     30.97     30.83     26.59

 

* Separate basis

 

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BIS Ratio

(unit: in millions of Won)

 

Items

   2014 1H     2013     2012  

Total Capital (A)

     20,097,696        26,138,766        26,989,716   

Risk weighted assets (B)

     142,719,073        200,977,843        210,397,222   

BIS Ratio (A/B)

     14.08     13.01     12.83

 

* 2014 1H & 2013: under Basel III, 2012: under Basel I
* 2014 1H figures are preliminary

 

b. Credit Ratings for the Past Three Years

 

Date of Rating

  

Evaluated Securities

   Credit
Rating
   Company
(Ratings Range)
   Evaluation
Category

2012.01.30

   Debentures    AAA    KIS Ratings (AAA ~D)    Case evaluation

2012.01.30

   Debentures    AAA    NICE (AAA ~ D)    Case evaluation

2012.02.28

   Hybrid    AA    KIS Ratings (AAA ~D)    Case evaluation

2012.02.28

   Hybrid    AA    Korea Ratings (AAA ~D)    Case evaluation

2012.06.13

   Debentures    AAA    Korea Ratings (AAA ~D)    Case evaluation

2012.06.13

   Debentures    AAA    NICE (AAA ~ D)    Case evaluation

2012.08.06

   Debentures    AAA    Korea Ratings (AAA ~D)    Case evaluation

2012.08.06

   Debentures    AAA    NICE (AAA ~ D)    Case evaluation

2012.10.17

   Debentures    AAA    KIS Ratings (AAA ~D)    Case evaluation

2012.10.17

   Debentures    AAA    NICE (AAA ~ D)    Case evaluation

2013.02.26

   Debentures    AAA    KIS Ratings (AAA ~D)    Case evaluation

2013.02.26

   Debentures    AAA    NICE (AAA ~ D)    Case evaluation

2013.07.15

   Debentures    AAA    KIS Ratings (AAA ~D)    Case evaluation

2013.07.15

   Debentures    AAA    Korea Ratings (AAA ~D)    Case evaluation

2013.09.23

   Debentures(Subordinate)    AA+    Korea Ratings (AAA ~D)    Case evaluation

2013.09.23

   Debentures(Subordinate)    AA+    NICE (AAA ~ D)    Case evaluation

2013.10.18

   Debentures(Subordinate)    AA+    Korea Ratings (AAA ~D)    Case evaluation

2013.10.18

   Debentures(Subordinate)    AA+    KIS Ratings (AAA ~D)    Case evaluation

2014.01.09

   Debentures    AAA    Korea Ratings (AAA ~D)    Case evaluation

2014.01.09

   Debentures    AAA    NICE (AAA ~ D)    Case evaluation

2014.02.11

   Debentures    AAA    KIS Ratings (AAA ~D)    Case evaluation

2014.02.11

   Debentures    AAA    NICE (AAA ~ D)    Case evaluation

 

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c. 30 Largest Exposures by Borrower

 

(As of June 30, 2014)    (unit: in hundred millions of Won)

 

Name

   Total Credit Exposure      Securities      Total Exposure  

Korea Land & Housing Corporation

     22,647         18,701         41,348   

Korea Finance Corporation

     —           15,648         15,648   

Korea Development Bank

     —           15,578         15,578   

Samsung Heavy Industries

     10,682         130         10,812   

Samsung Electronics

     10,404         50         10,454   

Hyundai Heavy Industries

     9,268         132         9,400   

Korea Railroad Corporation

     87         7,441         7,528   

Small & Medium Business Corporation

     203         7,322         7,525   

Korea BTL Infrastructure Fund

     —           6,547         6,547   

SPP Shipbuilding

     6,259         —           6,259   

Gajeul New Town Zone 4

Redevelopment Project

     5,640         —           5,640   

Hyosung

     5,497         —           5,497   

SK Energy

     5,215         101         5,315   

Daewoo International

     5,075         —           5,075   

DSME

     5,040         —           5,040   

S-OIL

     4,974         7         4,981   

Daewoo E&C

     4,742         —           4,742   

KT

     4,356         303         4,659   

Korean Air

     4,393         222         4,615   

Korea Water Resources Corporation

     7         4,501         4,508   

Kumho Tire

     3,489         930         4,419   

Samsung Display

     4,324         —           4,324   

Kia Motors

     4,161         —           4,161   

LG Chem

     4,098         16         4,114   

Export-Import Bank of Korea

     —           4,103         4,103   

KB Kookmin Bank

     2,804         1,295         4,099   

Korea Expressway Corporation

     —           4,081         4,081   

Halla Corporation

     3,913         —           3,913   

Korea Housing Finance Corporation

     —           3,895         3,895   

Donuimun 1 District City Environment Maintenance Project

     3,881         —           3,881   

Total

     131,160         91,003         222,163   

 

* Based on Woori Bank, Woori Card and Woori Investment Bank
* Excluding securities issued or guaranteed by the Government or the Bank of Korea
* Corporate borrowers only

 

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Table of Contents
d. 20 Largest Loan Exposures Classified as Sub-Standard or Below by Borrower

 

(As of June 30, 2014)    (unit: in hundred millions of Won)

 

Name

  

Industry

   Total Exposure      Sub-standard or below      Loan Loss Reserve  

A

   Shipbuilding      6,259         5,257         3,063   

B

   Shipbuilding      2,277         2,277         934   

C

   Shipbuilding      3,266         1,973         878   

D

   Manufacturing      1,315         1,315         251   

E

   Real Estate & Leasing      993         993         179   

F

   Manufacturing      986         986         6   

G

   Manufacturing      935         935         811   

H

   Construction      893         884         366   

I

   Real Estate & Leasing      711         711         108   

J

   Sports & Leisure      705         705         424   

K

   Shipbuilding      684         683         671   

L

   Real Estate & Leasing      625         625         52   

M

   Finance      612         612         312   

N

   Real Estate & Leasing      600         600         1   

O

   Construction      570         570         54   

P

   Manufacturing      569         569         8   

Q

   Sports & Leisure      537         537         189   

R

   Transportation      515         515         308   

S

   Manufacturing      508         508         0   

T

   Wholesale & Retail      483         483         2   

Total

     24,043         21,739         8,617   

 

* Based on Woori Bank, Woori Card and Woori Investment Bank
* Corporate borrowers only

 

e. Recent Developments

In December 2012, Woori Finance Research Institute was established as a separate legal entity to enhance the operational efficiency of Woori Financial Group’s internal research function and to increase its research capacity.

In April 2013, the credit card business of Woori Bank was spun off to become a wholly-owned subsidiary of Woori Finance Holdings in order to increase the competitiveness of such business.

In June 2013, Woori Finance Holdings acquired a 41.6% equity stake in Kumho Investment Bank by participating in a capital increase of Kumho Investment Bank and added the entity as a new first tier subsidiary. In April 2014, Woori Finance Holdings increased its equity stake to 58.15%.

 

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Ongoing Privatization

On June 26, 2013, the Public Funds Oversight Committee of the Financial Services Commission announced the privatization plan for Woori Finance Holdings. The privatization plan provides for the sale of and other procedures, including spin-off and merger, involving Woori Finance Holdings and its subsidiaries.

On March 20, 2014, the sale of Woori Financial to KB Financial Group was completed.

On May 2, 2014, the sale of Woori Asset Management to Kiwoom Securities was completed.

On June 27, 2014, the sale of Woori Investment & Securities, Woori Aviva Life Insurance, and Woori FG Savings Bank to NongHyup Financial Group was completed.

The spin-off of Kyongnam Bank and Kwangju Bank was completed on May 1, 2014 and on July 28, 2014, the Board of Directors of Woori Finance Holdings approved of a merger of Woori Finance Holdings, the non-surviving entity, with and into its subsidiary Woori Bank, the surviving entity. The date of merger is expected to be November 1, 2014.

 

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Table of Contents
III. Financial Information

 

1. Condensed Financial Statements (Separate)

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

 

Items

   2014 1H     2013 (1)     2012(1)     2011  

Cash and Cash Equivalents

     1,890,347        45,524        236,400        33,538   

Loans and Receivables

     217,510        34,454        209,199        239,215   

Available-for-Sale Financial Assets

     4         

Investments in Subsidiaries and Associates

     13,831,963        13,763,730        17,976,325        17,825,203   

Premises and equipment

     225        288        389        515   

Intangible Assets

     49        44        33        29   

Current Tax Assets

     —          138,005        20,844        —     

Deferred Tax Assets

     8,199        —          2,444        2,158   

Other Assets

     1,447        2,207        970        2,347   

Assets Held for Sale

     —          1,555,852       

Disposal Group Held for Distribution to Owners

     —          2,441,808       

Total Assets

     15,949,744        17,981,912        18,446,604        18,103,005   

Debentures

     3,545,001        3,505,025        3,654,276        3,653,968   

Net Defined Benefit Liability

     769        —          137        —     

Current Tax Liabilities

     193,372        —          165,588        201,361   

Deferred Tax Liabilities

     —          375,026        —          —     

Other Financial Liabilities

     31,468        175,813        53,448        31,796   

Other Liabilities

     1,084        889        1,479        1,659   

Liabilities Directly Associated with Disposal Group held for Distribution to Owners

     —          180,553        —          —     

Total Liabilities

     3,771,694        4,237,306        3,874,928        3,888,784   

Common Stock

     3,381,392        4,030,077        4,030,077        4,030,077   

Hybrid Securities

     498,407        498,407        498,407        309,010   

Capital Surplus

     91,475        109,026        109,026        109,026   

Other Equity

     (1,485,670     (1,272     (1,467     (1,029

Retained Earnings

     9,692,446        9,108,368        9,935,633        9,767,137   

Total Equity

     12,178,050        13,744,606        14,571,676        14,214,221   

Items

   2014 1H     2013 1H     2013     2012  

Net Interest Income

     (72,662     (80,951     (162,832     (172,380

Net Fees Income

     19,143        24,613        45,924        59,440   

Dividend Income

     194,527        254,081        254,081        562,272   

Reversal of Impairment Loss on Credit Loss

     4,626        2        (4,621     (1

Administrative Expenses

     (16,787     (23,648     (42,080     (50,774

Operating Income

     128,847        174,097        90,472        398,557   

Non-Operating Expense

     197,129        (1,081     (309,428     (1,367

Income Before Income Tax

     325,976        173,016        (218,956     397,190   

Net Income

     709,137        144,737        (596,363     397,336   

Total Comprehensive Income

     708,932        144,685        (596,168     396,898   

Earnings Per Share (in Won)

     911        161        -776        459   

 

(1) 2014 1H, 2013, 2012, 2011 amounts reflect amendments to Korean IFRS 1019 relating to employee benefits adopted by the Company (as described in the footnotes to the accompanying financial statements of the Company).

 

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Table of Contents
2. Condensed Financial Statements (Consolidated)

(unit: in millions of Won)

 

Items

   2014 1H     2013(1)(2)     2012(1)(2)      2011  

Cash and Cash Equivalents

     5,099,006        5,477,649        5,778,390         6,417,964   

Financial Assets at Fair Value through Profit or Loss

     5,346,956        4,806,197        27,352,216         26,844,973   

Available-for-Sale Financial Assets

     16,853,833        17,085,448        18,888,923         19,698,348   

Held-to-Maturity Financial Assets

     13,302,549        12,038,820        18,684,801         20,036,128   

Loans and Receivables

     213,846,076        211,912,373        250,275,551         235,317,520   

Investments in Jointly Controlled Entities and Associates

     664,309        617,570        1,037,930         928,233   

Investment Properties

     367,626        340,620        491,685         498,999   

Premises and equipment

     2,463,789        2,536,441        3,185,543         3,134,472   

Intangible Assets and goodwill

     187,089        268,926        433,407         447,891   

Assets Held for Sale

     1,104        587        83,347         56,243   

Current Tax Assets

     4,200        143,101        38,667         57,512   

Deferred Tax Assets

     204,820        155,256        155,439         79,505   

Derivative Assets

     151,163        131,410        281,069         326,840   

Other Assets

     168,196        178,886        414,846         377,062   

Disposal Group Held for Sale

     —          34,684,805        —           —     

Disposal Group Held for Distribution to Owners

     —          50,312,293        —           —     

Total Assets

     258,660,716        340,690,382        327,101,814         314,221,690   

Financial Liabilities at Fair Value Through Profit or Loss

     2,686,802        2,507,248        10,985,765         9,621,546   

Deposits

     179,751,900        175,323,644        204,209,580         197,378,565   

Borrowings

     16,121,563        18,231,511        33,479,716         34,667,740   

Debentures

     23,583,169        21,677,674        27,959,969         29,265,833   

Provisions

     502,691        684,799        863,658         892,308   

Net Defined Benefit Liability

     89,359        71,602        166,296         119,704   

Current Tax Liabilities

     198,599        9,980        178,791         274,257   

Deferred Tax Liabilities

     3,609        49,105        134,481         270,033   

Derivatives Liabilities

     —          1,785        38,000         33,493   

Other Financial Liabilities

     17,521,552        19,914,947        25,544,410         19,023,665   

Other Liabilities

     395,255        411,278        508,072         570,038   

Liabilities Directly Associated with Disposal Group Held for Sale

     —          32,047,626        —           —     

Liabilities Directly Associated with Disposal Group Held for Distribution to Owners

     —          46,882,414        —           —     

Total Liabilities

     240,854,499        317,813,613        304,068,738         292,117,182   

Equity Ownership of Controlled Entity

     15,867,661        17,847,633        18,695,919         17,555,085   

Capital Stock

     3,381,392        4,030,077        4,030,077         4,030,077   

Hybrid Securities

     498,407        498,407        498,407         309,010   

Capital Surplus

     91,262        176,502        174,044         175,768   

Other Equity

     (2,286,225     (35,367     112,013         563,074   

Retained Earnings

     14,182,825        13,112,690        13,881,378         12,477,156   

Equity Related to Asset Group Held for Sale

     —          29,820        —           —     

Equity Related to Asset Group Held for Distribution to Owners

     —          35,504        —           —     

Non-Controlling Interests

     1,938,556        5,029,136        4,337,157         4,549,423   

Total Equity

     17,806,217        22,876,769        23,033,076         22,104,508   

Total Liabilities and Equity

     258,660,716        340,690,382        327,101,814         314,221,690   

Number of Consolidated Subsidiaries

     82        173        166         143   

 

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Table of Contents

Items

   2014 1H (1)(2)     2013 1H (1)(2)     2013 (1)(2)     2012 (1)(2)  

Operating Income

     684,330        281,580        239,567        1,549,507   

Net Interest Income

     2,210,164        2,225,105        4,492,022        4,847,900   

Interest Income

     4,607,677        4,792,543        9,493,383        10,891,241   

Interest Expense

     (2,397,513     (2,567,438     (5,001,361     (6,043,341

Net fees and commissions income

     460,737        447,657        926,501        1,189,350   

Fees and Commissions Income

     800,430        779,745        1,565,224        1,686,885   

Fees and Commissions Expense

     (339,693     (332,088     (638,723     (497,535

Dividend Income

     76,690        50,665        87,641        101,063   

Gain on Financial Instruments at

Fair Value through Profit or Loss

     13,322        106,663        123,900        (364,894

Gain on Available-for-Sale Financial Assets

     (36,264     10,547        (85,242     533,148   

Gain on Held-to-Maturity Financial Assets

     —          —          —          —     

Impairment Losses on Credit Losses

     (315,151     (976,115     (2,277,260     (1,799,029

Other Net Operating Expenses

     (1,725,168     (1,582,942     (3,027,995     (2,958,031

Non-operating Income

     (34,874     22,078        48,100        88,413   

Share of Profits of Jointly Controlled Entities and Associates

     (42,033     (4,077     (1,277     44,515   

Other non-operating income

     7,159        26,155        49,377        43,898   

Net Income Before Income Tax Expense

     649,456        303,658        287,667        1,637,920   

Income Tax Expense

     163,817        35,726        35,096        356,840   

Income of Continuing Operations

     485,639        267,932        252,571        1,281,080   

Income of Discontinued Operations

     661,768        176,457        (966,006     566,599   

Net Income

     1,147,407        444,389        (713,435     1,847,679   

Net Income Attributable to Owners

     1,195,958        358,346        (537,688     1,633,341   

Net Income Attributable to the Non-Controlling Interests

     (48,551     86,043        (175,747     214,338   

Other Comprehensive Income

     (215,786     20,322        (110,347     (438,341

Remeasurement of the Net Defined Benefit Liability

     (21,026     9,569        9,217        (51,297

Gain (loss) on Available-for-Sale Financial Assets

     (171,843     (43,740     (50,953     (349,481

Share of Other Comprehensive Loss of Jointly Controlled Entities and Associates

     (2,766     (9,039     (6,375     56,855   

Gain (loss) on Overseas Business Translation

     7,000        76,651        (59,824     (107,509

Gain on Valuation of Cashflow Hedge

     (27,151     (13,119     (2,412     13,091   

Total Comprehensive Income

     931,621        464,711        (823,782     1,409,338   

Comprehensive Income Attributed to Owners

     1,065,784        378,071        (623,695     1,176,805   

Comprehensive Income Attributed to the Non-Controlling Interests

     (134,163     86,640        (200,087     232,533   

Earnings from Continuing and Discontinued Operations Per Share (in Won)

     1,550        426        (704     1,993   

Earnings from Continuing Operations Per Share (in Won)

     528        259        165        1,411   

 

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(1) 2014 1H, 2013 1H, 2013, 2012 amounts reflect amendments to Korean IFRS 1110 (scope of consolidation) and Korean IFRS 1019 (employee benefits) adopted by the Company (as described in the footnotes to the accompanying financial statements of the Company).
(2) In connection with the currently pending privatization process of Woori Finance Holdings Co., Ltd. and its subsidiaries by the Korean Government, operations of the regional bank subsidiaries of Woori Finance Holdings Co., Ltd. (consisting of Kwangju Bank and Kyongnam Bank) and certain other subsidiaries (consisting of Woori Investment & Securities, Woori Financial, Woori F&I, Woori Aviva Life Insurance, Woori FG Savings Bank and Woori Asset Management) have been classified as discontinued operations.
(3) The Company has reclassified certain items.
- Beginning in 2013 the Company has reclassified certain credit card commissions from interest income to fees income Company (as described in the footnotes to the accompanying financial statements of the Company). Results for 2011, 2012, 2013 and 2014 as applicable, have been restated accordingly.

 

IV. Independent Auditor’s Opinion

 

1. Independent Auditor’s Opinion

 

     2014 1H   2013    2012

Auditor

   Deloitte Anjin LLC   Deloitte Anjin LLC    Deloitte Anjin LLC

Auditor’s Opinion

   (1)   Unqualified Opinion    Unqualified Opinion

 

(1) In its review report attached to this report, Deloitte Anjin LLC has stated that nothing had come to their attention that caused them to believe that the accompanying consolidated and separate financial statements of the Company are not presented fairly in all material respects, in accordance with Korean IFRS.

 

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Table of Contents
2. Compensation to the Independent Auditor for the Past Three Years

 

a. Auditing Service

(units: in millions of Won, hours)

 

Year

  

Auditor

  

Activity

   Compensation(1)      Accrued Time
(hrs)
 

2014 1H

   Deloitte Anjin LLC    Review of Quarter and Half Year financial statements and audit of Annual financial statements (Consolidated, Separate)      384         3,833   

2013

   Deloitte Anjin LLC    Review of Quarter and Half Year financial statements and audit of Annual financial statements (Consolidated, Separate)      454         11,327   

2012

   Deloitte Anjin LLC    Review of Quarter and Half Year financial statements and audit of Annual financial statements (Consolidated, Separate)      440         8,848   

 

b. Compensation for Services Other than the Audit

(unit: in millions of Won)

 

Year

   Contract Date     

Activity

   Period      Comp.      Note  
2014

1H

     2014.04.25       Corporate tax reconciliation      2014.07~2014.08         31      
           2015.02~2015.04         
     2014.07.25       Merger related financial information review      2014.07~2014.08         270      
2013      2013.04.30       PCAOB and SOX Auditing Corporate tax reconciliation     

 

 

2013.07~2014.04

2013.07~2013.08

2014.02~2014.04

  

  

  

    

 

1,405

36

  

  

  

 

 

 

—  

 

  

     2013.10.28       Spin-off related financial statement review      2013.10~2013.10         40      
2012      2012.04.30       PCAOB and SOX Auditing Corporate tax reconciliation     

 

 

2012.07~2013.04

2012.07~2012.08

2013.02~2013.03

  

  

  

    

 

1,358

35

  

  

  

 

 

 

—  

 

  

2011     

 

2011.06.27

2011.04.30

  

  

   PCAOB and SOX Auditing Corporate tax reconciliation     

 

 

2011.07~2012.04

2011.07~2011.08

2012.02~2012.03

  

  

  

    

 

1,266

35

  

  

  

 

 

 

—  

 

  

 

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Table of Contents
V. Corporate Governance and Affiliated Companies

 

1. About the Board of Directors

 

  a. Composition of our board of directors

From January 1, 2014 until March 20, 2014

 

Name

 

Career & Academic Background

  Relationship with
Largest Shareholder
 

Notes

Soon-Woo Lee

(Standing Director)

 

- Current) Chairman & Chief executive officer of Woori Finance Holdings & Woori Bank

- Deputy President & Director, Woori Bank

- Executive Vice President & Director, Woori Bank

- Bachelor of Law, Sungkyunkwan University

  None   —    

Yong-Man Rhee

(Non-Standing Director)

 

- Current) Committee Member, National Elders Committee

- Minister, Ministry of Finance and Economy

- Governor, Bank Supervisory Service

- Graduate School of Public Administration, Seoul National University

  None  

First appointment:

March 2013

Chairman of the Board

Young-Soo Park

(Non-standing Director)

 

- Current) Representative Attorney, Law Firm Gangnam

- Chief Prosecutor, Seoul High Prosecutors’ Office

- Chief Prosecutor, Central Investigation Department, Supreme Prosecutors’ Office

- Bachelor of Liberal Arts and Sciences, Seoul National University

  None  

First appointment:

March 2013

Doo-Hee Lee

(Non-standing Director)

 

- Current) Dean & Professor of College of Business Administration, Korea University

- President, Asia-Pacific Association for International Education

- Ph.D. in Business Administration, Michigan State University

- Bachelor of Business Administration, Korea University

  None  

First appointment:

March 2009

Hee-Yul Chai

(Non-standing Director)

 

- Current) Professor of Economics, Kyonggi University

- Non-standing Director, Financial Services Commission

- Ph.D. in Economics, University of Paris X

- Bachelor of Economics, Seoul National University

  None  

First appointment:

March 2013

Hun Lee

(Non-standing Director)

 

- Current) Co-Head, The Lawyers for Citizens

Attorney, HongIk Law Firm

- Attorney, Barun Law

- Bachelor of Law, Chung-Ang University

  None  

First appointment:

March 2009

Hyung-Goo Lee

(Non-standing Director)

 

- Current) Director, Savings Bank Support Department, Korea Deposit Insurance Corporation

- Employed at Cho-Hung Bank

- Bachelor of Law, Daegu University

  Employee
of the
largest
shareholder
 

First appointment:

March 2012

John Ji Whan Park

(Non-standing Director)

 

- Current) Representative Director, Asia Evolution

- Director, AT&T Network System

- Bachelor of Arts (Economics), Brown University

- Master of Business Administration, Harvard University

  None  

First appointment:

March 2011

 

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Table of Contents

After the general shareholders’ meeting on March 21, 2014

 

Name

  

Career & Academic Background

   Relationship with
Largest Shareholder
  

Notes

Soon-Woo Lee

(Standing Director)

  

- Current) Chairman & Chief executive officer of Woori Finance Holdings & Woori Bank

- Deputy President & Director, Woori Bank

- Executive Vice President & Director, Woori Bank

- Bachelor of Law, Sungkyunkwan University

   None    —    

Young-Soo Park

(Non-standing Director)

  

- Current) Representative Attorney, Law Firm Gangnam

- Chief Prosecutor, Seoul High Prosecutors’ Office

- Chief Prosecutor, Central Investigation Department, Supreme Prosecutors’ Office

- Bachelor of Liberal Arts and Sciences, Seoul National University

   None   

First appointment:

March 2013

Chairman of the Board

Sang-Keun Oh

(Non-standing Director)

  

- Current) Professor, Economics, Dong-A University

- Director, The Korean Economic Association

- Ph.D. in Economics, University of Wisconsin-Madison

- BA, Economics, SungKyunKwan University

   None   

First appointment:

March 2014

Hee-Yul Chai

(Non-standing Director)

  

- Current) Professor of Economics, Kyonggi University

- Non-standing Director, Financial Services Commission

- Ph.D. in Economics, University of Paris X

- Bachelor of Economics, Seoul National University

   None   

First appointment:

March 2013

Kang-Shik Choi

(Non-standing Director)

  

- Current) Professor, Economics, Yonsei University Dean, University College, Yonsei University

- Ph.D. in Economics, Yale University

- BA, Economics, Yonsei University

   None   

First appointment:

March 2014

Seong-Yeal Lim

(Non-standing Director)

  

- Current) Director, Planning & Coordination Dept., Korea Deposit Insurance Corporation

- Director, Risk Management Dept., Kore Deposit Insurance Corporation

- MPA, Seoul National University

- BA, Economics, Seoul National University

   Employee
of the
largest
shareholder
  

First appointment:

March 2014

Min Chang

(Non-standing Director)

  

- Current) Director, Research Coordination Division, Korea Institute of Finance

- Advisor to the Chairman, Financial Services Commission

- Ph.D. in Economics, Michigan State University

- BA, Economics, Seoul National University

   None   

First appointment:

March 2014

 

  b. Committees under the Board of Directors

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

 

  (a) Management Committee

 

  (b) Business Development and Compensation Committee

 

  (c) Risk Management Committee

 

  (d) Standing Directors Committee

 

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  (e) Ethics Committee

 

  (f) Outside Directors Recommendation Committee

 

  (g) MOU Evaluation Committee

 

  (h) Audit Committee

 

  (i) Audit Committee Member Candidate Recommendation Committee

From January 1, 2014 until March 20,2014

 

Name

  

Position

  

Notes

Management Committee

  

Soon-Woo Lee

Yong-Man Rhee

Young-Soo Park

Doo-Hee Lee

Hun Lee

   Chairman & CEO Soon-Woo Lee heads this committee consisting of the heads of the committees under the Board of Directors.

Business Development and Compensation Committee

  

Young-Soo Park

Doo-Hee Lee

Hee-Yul Chai

Hun Lee

   Non-standing director Young-Soo Park heads this committee consisting of no fewer than three non-standing directors.

Risk Management Committee

  

Soon-Woo Lee

Hee-Yul Chai

Hun Lee

Hyung-Goo Lee

John Ji Whan Park

   Non-standing director Hun Lee heads this committee consisting of the Chairman and CEO, no fewer than one standing director and no fewer than three non-standing directors.

Standing Directors Committee

   Soon-Woo Lee    Chairman & CEO Soon-Woo Lee heads the committee consisting of all standing directors.

Ethics Committee

  

Soon-Woo Lee

Yong-Man Rhee

Hee-Yul Chai

Hyung-Goo Lee

John Ji Whan Park

   Non-standing director Yong-Man Rhee heads this committee consisting of all standing directors and no fewer than two non-standing directors.

Outside Directors Recommendation Committee

  

Soon-Woo Lee

Young-Soo Park

Doo-Hee Lee

Hee-Yul Chai

Hyung-Goo Lee

John Ji Whan Park

   Non-standing director Young-Soo Park heads this committee consisting of the Chairman and CEO and no fewer than three non-standing directors.

MOU Evaluation Committee

  

Soon-Woo Lee

Yong-Man Rhee

Young-Soo Park

Doo-Hee Lee

Hee-Yul Chai

Hun Lee

Hyung-Goo Lee

John Ji Whan Park

   Chairman & CEO Soon-Woo Lee heads this committee consisting of the entire board of directors.

Audit Committee

  

Yong-Man Rhee

Young-Soo Park

Doo-Hee Lee

Hun Lee

Hyung-Goo Lee

   Consists of no fewer than three directors (including at least one financial expert, at least two-thirds of whom are non-standing directors.

Audit Committee Member Candidate Recommendation Committee

  

Yong-Man Rhee

Young-Soo Park

Doo-Hee Lee

Hee-Yul Chai

Hun Lee

Hyung-Goo Lee

John Ji Whan Park

   Non-standing director Young-Soo Park heads this committee consisting of all non-standing directors.

 

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Table of Contents

After the general shareholders’ meeting on March 21, 2014

 

Name

  

Position

  

Notes

Management Committee

  

Soon-Woo Lee

Young-Soo Park

Sang-Keun Oh

Hee-Yul Chai

Kang-Shik Choi

   Chairman & CEO Soon-Woo Lee heads this committee consisting of the heads of the committees under the Board of Directors.

Business Development and Compensation Committee

  

Young-Soo Park

Sang-Keun Oh

Hee-Yul Chai

Kang-Shik Choi

   Non-standing director Kang-Shik Choi heads this committee consisting of no fewer than three non-standing directors.

Risk Management Committee

  

Soon-Woo Lee

Hee-Yul Chai

Kang-Shik Choi

Seong-Yeal Lim

Min Chang

   Non-standing director Hee-Yul Chai heads this committee consisting of the Chairman and CEO, no fewer than one standing director and no fewer than three non-standing directors.

Standing Directors Committee

   Soon-Woo Lee    Chairman & CEO Soon-Woo Lee heads the committee consisting of all standing directors.

Ethics Committee

  

Soon-Woo Lee

Hee-Yul Chai

Seong-Yeal Lim

Min Chang

   Non-standing director Hee-Yul Chai heads this committee consisting of all standing directors and no fewer than two non-standing directors.

Outside Directors Recommendation Committee

  

Soon-Woo Lee

Young-Soo Park

Sang-Keun Oh

Kang-Shik Choi

Seong-Yeal Lim

Min Chang

   Non-standing director Sang-Keun Oh heads this committee consisting of the Chairman and CEO and no fewer than three non-standing directors.

MOU Evaluation Committee

  

Soon-Woo Lee

Young-Soo Park

Sang-Keun Oh

Hee-Yul Chai

Kang-Shik Choi

Seong-Yeal Lim

Min Chang

   Chairman & CEO Soon-Woo Lee heads this committee consisting of the entire board of directors.

Audit Committee

  

Young-Soo Park

Sang-Keun Oh

Hee-Yul Chai

Kang-Shik Choi

Seong-Yeal Lim

Min Chang

   Consists of no fewer than three directors (including at least one financial expert, at least two-thirds of whom are non-standing directors.

Audit Committee Member Candidate Recommendation Committee

  

Young-Soo Park

Sang-Keun Oh

Hee-Yul Chai

Kang-Shik Choi

Seong-Yeal Lim

Min Chang

   Non-standing director Sang-Keun Oh heads this committee consisting of all non-standing directors.

 

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Table of Contents
2. Related Companies

 

LOGO

 

32


Table of Contents
3. Investments in Other Companies

 

As of June 30, 2014    (units: thousands of shares, millions of Won, %)

 

Name

  Beginning Balance     Changes     Ending Balance    

Total Assets

as of the Most

   

Net Income for

 
  Quantity     Share     Book value     Quantity     Cost     Valuation
Gain/Loss
    Quantity     Share     Book value     Recent Fiscal
Year
    the Most Recent
Fiscal Year
 

Woori Bank

    596,691        100.0        12,848,076        —          —          —          596,691        100.0        12,848,076        249,984,771        465,266   

Kwangju Bank

    49,413        100.0        976,291        (49,413     (976,291     —          0        0        0        18,872,972        61,030   

Kyongnam Bank

    58,050        100.0        1,443,661        (58,050     (1,443,661     —          0        0        0        31,714,227        130,181   

Woori FIS

    4,900        100.0        35,013        —          —          —          4,900        100.0        35,013        332,223        (2,054

Woori F&I

    14,000        100.0        206,563        (14,000     (206,563     —          0        0        0        1,641,240        49,115   

Woori Investment

& Securities

    75,426        37.9        953,210        (75,426     (942,006     (11,204     0        0        0        29,985,901        16,034   

Woori Asset Management

    6,662        100.0        67,456        (6,662     (67,456     —          0        0        0        85,169        3,498   

Woori Private Equity

    6,000        100.0        34,246        —          —          —          6,000        100        34,246        89,945        1,776   

Woori Financial

    11,181        52.0        238,575        (11,181     (238,575     —          0        0        0        3,939,851        54,143   

Woori Aviva Life Insurance

    7,601        51.6        36,317        (7,601     (35,164     (1,153     0        0        0        4,465,602        31   

Woori FG

Savings Bank

    10,320        100.0        53,730        (10,320     (56,218     2,488        0        0        0        957,748        (27,346

Woori Finance

Research Institute

    600        100.0        3,000        —          —          —          600        100        3,000        3,739        610   

Woori Card

    169,266        100.0        773,748        —          —          —          169,266        100        773,748        4,679,202        47,998   

Woori

Investment Bank

    139,295        41.6        69,648        136,466        68,233        —          275,761        58.15        137,881        862,744        (85,983

Total

    1,149,405          17,739,534        (96,187     (3,897,701     (9,869     1,053,218        —          13,831,964        347,615,334        714,299   

 

1. The changes in quantity and cost are calculated based on increases and decreases due to acquisition (or disposal) and valuation gain or loss under the acquisition cost method.
2. The figures for the total assets and the net income for the most recent fiscal year are generally calculated on a consolidated basis in accordance with Korean IFRS.
3. The amounts for Woori Investment Bank are for the fiscal year ended March 31, 2014 in accordance with Korean IFRS. The amounts for Woori FG Savings Bank are for the fiscal year ended June 30, 2013 in accordance with the generally accepted accounting principles in Korea for non-consolidated financial statements.
4. The net income amounts for Woori Investment & Securities, Woori Asset Management, and Woori Aviva Life Insurance are calculated from April 2013 to December 2013 due to changes in the fiscal year-end.
5. Recognized impairment loss of 12,357 million won in 2014 1H and 306,437 million won in 2013 4Q, and subsequent gain of 2,488 million won in 2014 1H on the subsidiaries undergoing a sale based on the lesser of net fair value and book value. The sale s of Woori Financial, Woori Asset Management, Woori F&I, Woori Investment & Securities, Woori Aviva Life Insurance, and Woori FG Savings Bank were completed in 2014 1H, and a related gain of 207,636 million won was recognized. In addition, the spin-off of Kyongnam Bank and Kwangju Bank were completed in 2014H.

 

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Table of Contents
VI. Stock Information

 

1. Stock Distribution

 

a. Stock Information of the Largest Shareholder and Specially Related Parties

 

As of June 30, 2014    (units: shares, %)

 

Name

  

Relation

   Type    Shares Held      Reasons
Behind
Change
         Beginning balance      (+)      (-)      Ending balance     
         Stock      Share                    Stock      Share     

KDIC

   Largest S/H    Common      385,285,578         56.97         —           —           385,285,578         56.97      

Total

      Common      385,285,578         56.97         —           —           385,285,578         56.97      
      Others      —           —           —           —           —           —        
      Total      385,285,578         56,97         —           —           385,285,578         56.97      

Largest Shareholder: KDIC

 

b. Share Ownership of More Than 5%

 

As of May 1, 2014    (units: shares, %)

 

No.

  

Name

   Stock      Notes
      No. of shares      %     
1    KDIC      385,285,578         56.97      
2    National Pension Fund      55,532,990         8.21      

 

c. Minority Shareholders

As of December 31, 2013

 

Items

   Shareholder
number
     Ratio(%)     Number of shares      Ratio(%)  

Minority Shareholders

     51,339         99.98     298,886,286         37.07

 

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2. Stock Price and Stock Market Performance for the Past Six Months

 

a. Domestic Stock Market

(units: Won, shares)

 

Period

   January 2014      February 2014      March 2014      April 2014      May 2014      June 2014  

Common Stock

   High      13,300         12,400         12,350         12,600         12,650         12,750   
   Low      11,800         11,600         11,600         11,650         11,650         11,800   
   Average      12,530         11,980         11,988         12,109         11,808         12,261   

Monthly Trade Volume

   High      2,245,745         3,104,887         2,807,839         8,474,637         13,027,476         2,701,302   
   Low      951,805         676,534         693,021         0         0         762,100   
   Average      29,081,229         31,672,463         26,910,197         27,557,721         26,562,212         26,637,376   

 

b. Foreign Stock Market (NYSE)

(units: US Dollars, ADRs)

 

Period

   January 2014      February 2014      March 2014      April 2014      May 2014      June 2014  

ADR

   High      37.61         34.83         34.90         36.19         36.96         37.36   
   Low      32.67         32.23         32.49         32.71         32.42         34.66   
   Average      34.97         33.56         33.86         34.91         33.99         35.92   

Won Con-version

   High      39,690         37,188         37,364         37,753         37,947         38,032   
   Low      35,418         34,650         34,787         33,747         33,448         35,298   
   Average      37,229         35,957         36,256         36,468         34,836         36,616   

Monthly Trade Volume

   High      11,300         18,400         21,600         5,700         17,500         21,600   
   Low      800         1,200         2,400         0         600         1,300   
   Monthly Total      96,400         145,200         163,700         46,300         143,900         140,400   

 

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VII. Directors and Employee Information

 

1. Directors

As of June 30, 2014

 

Position

   Name    Common Stock Owned    Expiration of Term

Chairman & CEO

   Registered    Soon-Woo Lee    11,998    December 30, 2014

Executive Vice President

   Non-Registered    Seung-Gyu Kim    —      December 30, 2014

Executive Vice President

   Non-Registered    Dong-Gun Lee    —      December 30, 2014

Managing Director

   Non-Registered    Seungrock Kim    —      December 30, 2014

Managing Director

   Non-Registered    Nam Hee Lee    —      December 30, 2014

Non-standing Director

   Registered    Young-Soo Park    —      March 21, 2015

Non-standing Director

   Registered    Sang-Geun Oh    —      March 20, 2015

Non-standing Director

   Registered    Hee-Yul Chai    —      March 21, 2015

Non-standing Director

   Registered    Kang-Shik Choi    —      March 20, 2015

Non-standing Director

   Registered    Seong-Yeal Lim    —      March 20, 2015

Non-standing Director

   Registered    Min Chang    —      March 20, 2015

 

2. Employee Status

 

As of June 30, 2014    (units: persons, thousands of Won)

 

     Staff      Average
Tenure
Years
     Cumulative
Compensation
     Average
Compensation
Per Person
     Note
   Regular      Contract      Others      Total              

Total

     79         —           —           79         3 years and 10 months         4,346         55      

 

* Excluding three non-registered acting managing directors.

 

3. Directors’ Compensation

 

As of June 30, 2014    (units: persons, thousands of Won)

 

Items

   Number of
Persons
     Total
Compensation
     Average Compensation
Per Director
    

Note

Standing Director

     1         361         361      

Non-standing Directors

     —           32         16       Excluding audit committee members1)

Audit Committee Members

     6         160         29      

 

* Total Compensation: Cumulative basis from January 1 to June 30, 2014 and includes payments made to former employees
1) As the audit committee members consisted of all the non-standing directors after the general shareholders’ meeting on March 21, 2014, the figures for outside directors are as of the end of 2014 1Q.

 

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VIII. Related Party Transactions

 

  1. Transactions with Affiliated Parties

 

  a. Transactions of Provisional Payments and Loans (including secured loans)

 

* As of June 30, 2014    (unit: in millions of Won)

 

Name

   Relation      Item      Date      Maturity      Rate     Changes  
                 Beg.          +          -     End  

Woori Financial

     Subsidiary         Other Loan         2008.12.26         2014.10.19         4.04     1,000         —           (1,000     0   

Total

  

             1,000         —           (1,000     0   

 

* The above loan was fully repaid on March 20, 2014

 

  b. Payment Transactions

 

* As of June 30, 2014    (unit: shares)

 

     Relation      Capital Contribution and Share Disposal  
        Types of
Shares
     Transactions      Notes  

Name

         Beginning      Increase      Decrease     Ending     

Woori Bank

     Subsidiary         Common stock         596,690,380         —           —          596,690,380      

Kwangju Bank

     Subsidiary         Common stock         49,413,851         —           (49,413,851     0         Spun-off May 1, 2014   

Kyongnam Bank

     Subsidiary         Common stock         58,050,037         —           (58,050,037     0         Spun-off May 1, 2014   

Woori FIS

     Subsidiary         Common Stock         4,900,000         —           —          4,900,000      

Woori F&I

     Subsidiary         Common Stock         14,000,000         —           (14,000,000     0         Sold May 7, 2014   

Woori Investment & Securities

     Subsidiary         Common Stock         75,426,214         —           (75,426,214     0         Sold June 27, 2014   

Woori Asset Management

     Subsidiary         Common Stock         6,662,000         —           (6,662,000     0         Sold May 2, 2014   

Woori Private Equity

     Subsidiary         Common Stock         6,000,000         —           —          6,000,000      

Woori Financial

     Subsidiary         Common Stock         11,180,630         —           (11,180,630     0         Sold March 20, 2014   

Woori Aviva Life Insurance

     Subsidiary         Common Stock         7,601,091         —           (7,601,091     0         Sold June 27, 2014   

Woori FG Savings Bank

     Subsidiary         Common Stock         10,320,000         —           (10,320,000     0         Sold June 27, 2014   

Woori Finance

Research Institute

     Subsidiary         Common Stock         600,000         —           —          600,000      

Woori Card

     Subsidiary         Common Stock         169,266,200         —           —          169,266,200      

Woori Investment Bank

     Subsidiary         Common Stock         139,295,220         136,466,271         —          275,761,491         Capital Increase   

Total

  

     1,149,405,623         136,466,271         (232,653,823     1,053,218,071      

 

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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 Finance Holdings Co., Ltd.        

(Registrant)

Date: August 14, 2014   

By: /s/ Seung-Gyu Kim

   (Signature)
   Name:  Seung-Gyu Kim
   Title:    Executive Vice President

 

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