FOMR 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 April 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

Index

 

1. Summary of 2017 Business Report

 

- For the Woori Bank Audit Reports for Fiscal Year 2017, please refer to the exhibits to the Form 6-K filing furnished to the U.S. Securities and Exchange Commission on March 14, 2018.

 

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Table of Contents

Summary of 2017 Business Report

Table of Contents

 

I.

  

INTRODUCTION OF THE BANK

     5  
  

1.

  

Overview of the Bank

     5  
  

2.

  

Capital Structure (Changes in Capital)

     9  
  

3.

  

Total Number of Authorized Shares

     10  
  

4.

  

Voting Rights

     10  
  

5.

  

Dividend Information

     11  

II.

  

BUSINESS OVERVIEW

     12  
  

1.

  

Results of Operations

     12  
  

2.

  

Business Performance by Operation

     12  
  

3.

  

Funding Sources and Use of Funds

     14  
  

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.

  

INDEPENDENT AUDITOR’S OPINION

     23  
  

1.

  

Independent Auditor’s Opinion

     23  
  

2.

  

Compensation to the Independent Auditor for the Past Three Years

     23  

V.

  

CORPORATE GOVERNANCE AND AFFILIATED COMPANIES

     23  
  

1.

  

About the Board of Directors

     23  
  

2.

  

Affiliated Companies (As of December 31, 2017)

     25  

VI.

  

SHAREHOLDER INFORMATION

     26  
  

1.

  

Share Distribution

     26  
  

2.

  

Stock Price and Stock Market Performance

     29  

VII.

  

DIRECTORS AND EMPLOYEE INFORMATION

     30  
  

1.

  

Directors

     30  
  

2.

  

Employee Status

     31  
  

3.

  

Directors’ Compensation

     31  

VIII.

  

RELATED PARTY TRANSACTIONS

     31  

 

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Table of Contents

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.

 

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Table of Contents
I. Introduction of the Bank

 

1. Overview of the Bank

 

a. History

 

  (1) Background: Major developments.

 

January 30, 1899    Established Daehancheonil Bank (Changed its name to The Commercial Bank of Korea on April 24, 1950)
July 3, 1909    The first bank in Korea to build modernized head office building ‘Gwangtonggwan’
March 31, 1915    Became main transaction bank of Gyeongsung (Present: Seoul Metropolitan City)
December 16, 1932    Established Chosun Trust Company (Changed its name to Hanil Bank on January 1, 1960)
March 3, 1956    The first company to be listed in KRX
June 10, 1959    Installed vault for women
November 11, 1968    The first Korean bank to open an overseas branch (Tokyo branch)
January 4, 1999    The Commercial Bank of Korea changed its name to Hanvit Bank after merging with Hanil Bank
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 20, 2002    Changed its name and C.I. to Woori Bank
July 31, 2003    Merged with Woori Investment Bank
March 31, 2004    Merged with Woori Credit Card
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)

 

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April 1, 2009    Issued 60,000,000 common shares for increase in capital
December 15, 2009    Awarded Asian Financial Culture Grand Prize “Top Prize in Community Activities”
November 29, 2010    Acquired ‘IT service ISO 27001 Certificate’
April 25, 2012    Awarded “2012 Top Bank of Korea” by the Asian Banker for two consecutive years
September 25, 2012    Woori Brazil Bank began business
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”
April 1, 2013    Spun off its credit card business
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”
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
June 30, 2014    Daehancheonil Bank materials designated as the 11th in National Records Designation System
August 1, 2014    The first Korean bank to launch ‘Woori Mobile Passbook’, enables to transact without passbook
November 1, 2014    Woori Finance Holdings merged with and into the Bank
November 19, 2014    Re-listed Woori Bank in KRX
February 26, 2015    PT. Bank Woori Saudara Indonesia officially launched
March 31, 2015    Commemoration of the 100 year partnership between Woori Bank and Seoul Metropolitan Government

 

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April 19, 2015    Awarded ‘2015 Best Cash Management Bank in South Korea’ and ‘2015 Best Sub Custodian Bank in South Korea’ by Asian Banker
May 15, 2015    Launched ‘Incheon International Airport Branch’
May 26, 2015    Launched mobile-only bank, WiBee Bank
   WiBee Bank mobile loan products released
November 26, 2015    The first Korean bank to reach 200 global networks (Woori Finance Myanma)
January 13, 2016    The first Korean bank to start ‘iris scan ATM service’
January 19, 2016    Started debit card service in Bangladesh
February 3, 2016    Lanched WiBee Bank service in Indonesia, Vietnam and Brazil
May 2, 2016    The first Korean bank to open representative office in Iran
July 1, 2016    Launched mobile based ‘WiBee Members’
October 31, 2016    Acquired approval to launch subsidiary in Vietnam
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    Awarded ‘2016 Bank of the Year in Korea’ by Bankers
December 27, 2016    Reached 250th global networks
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
June 8, 2017    Awarded “Best Transaction Bank” and “Top Bank in Money Management” by Asian Banker

 

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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    Exceeded 300 global networks

 

b. Affiliated Companies

 

  (1) Overview of Business Group

 

  1. Name of business group: Woori Bank

 

  (2) Affiliated companies within the business group

As of December 31, 2017

 

Type

  

Name of Company

  

(Controlling Company)

Company    Woori Bank    —  

First Tier Subsidiaries

(18 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%)   
   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 (3) : Woori Bank, Woori Investment Bank and PT. Bank Woori Saudara Indonesia

 

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Table of Contents
2. Capital Structure (Changes in Capital)

 

As of December 31, 2017      (units: Won, shares)

 

Date

 

Category

  Stock Decrease/Increase
    Type     Quantity     Par Value     Issue price    

Note

APR.1.2013

  Capital reduction with compensation     Common       153,797,130       5,000       5,000     Capital reduction due to spin off of credit card business

APR.1.2013

  Capital reduction with compensation     Preferred       15,469,070       5,000       10,000     Capital reduction due to spin off of credit card business

JUN.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

JUN.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

NOV.3.2014

  —       Common       596,690,380       5,000       5,000     Capital reduction due to the merger with Woori Finance Holdings

NOV.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

OCT.2.2015

  —       Common       278,371       5,000       —       Retirement of shares*

 

* On October 2, 2015, 278,371 shares were retired and the total number of shares issued changed to 676,00,000 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 30, 2015, entitled “Decision to Terminate Trust Agreement for Acquisition of Treasury Shares”]

 

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3. Total Number of Authorized Shares

 

As of December 31, 2017       (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 30, 2015, entitled “Decision to Terminate Trust Agreement for Acquisition of Treasury Shares”]

 

4. Voting Rights

 

As of December 31, 2017       (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.

 

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Table of Contents
5. Dividend Information

 

Items

     2017      2016      2015  

Par value per share (Won)

 

     5,000        5,000        5,000  

Net profit (Millions of Won)

 

     1,512,148        1,261,266        1,059,157  

Earnings per share (Won)

 

     1,999        1,567        1,301  
     

 

 

    

 

 

    

 

 

 

Total cash dividends (Millions of Won)

 

     403,963        269,308        336,636  
     

 

 

    

 

 

    

 

 

 

Total stock dividends (Millions of Won)

 

     —          —          —    
     

 

 

    

 

 

    

 

 

 

Cash dividend payout ratio (%)

 

     26.71        21.35        31.8  

Cash dividend yield (%)

     Common Shares        3.70        3.01        5.50  
     Preferred Shares        —          —          —    

Stock dividend yield (%)

     Common Shares        —          —          —    
     Preferred Shares        —          —          —    

Cash dividend per share (Won)

     Common Shares        600        400        500  
     Preferred Shares        —          —          —    

Stock dividend per share (Won)

     Common Shares        —          —          —    
     Preferred Shares        —          —          —    

 

* Based on K-IFRS consolidated financial statements
* 2015 and 2017 figures include interim dividends

 

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Table of Contents
II. Business Overview

 

1. Results of Operations

 

As of December 31, 2017

      (unit: in 100 millions of Won)

 

Type

   2017      2016      2015  

Operating income

     21,567        15,742        13,516  

Non-operating income

     1,679        1,690        3,140  

Non-operating expenses

     3,751        1,898        2,136  

Ordinary profits

     19,495        15,534        14,519  

Income from continuing operations before income tax

     19,495        15,534        14,519  

Income tax expense from continuing operations

     4,194        2,759        3,766  

Income from discontinued operations

     —          —          —    

Net income

     15,301        12,775        10,754  

 

* Based on K- IFRS consolidated financial statements

 

2. Business Performance by Operation

 

a. Deposit Services

 

As of December 31, 2017

      (unit: in millions of Won)

 

Type

   2017      2016      2015  

Deposits received in local currency

   Demand deposits      9,349,070        9,491,680        9,728,839  
   Fixed deposits      194,289,437        183,723,169        175,598,100  
   Mutual funds      34,055        37,128        40,888  
   Subtotal      203,672,562        193,251,977        185,367,827  

Deposits received in foreign currencies

     23,682,755        21,452,943        19,129,193  

CDs

     4,399,817        3,808,856        2,417,790  

Money trusts

     1,401,841        1,360,176        1,304,268  

Other deposits received

     1,538,110        1,146,459        922,749  
     

 

 

    

 

 

    

 

 

 

Total

     234,695,084        221,020,411        209,141,826  
     

 

 

    

 

 

    

 

 

 

 

* Based on K- IFRS consolidated financial statements

 

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Table of Contents
b. Loan Services

 

  (a) Balances of Loans by Type

 

As of December 31, 2017

      (unit: in millions of Won)

 

Type

   2017      2016      2015  

Loans in local currency

     200,213,230        191,309,481        185,154,851  

Loans in foreign currencies

     15,664,794        17,855,868        17,910,253  

Guarantee payments

     23,620        25,197        44,242  
  

 

 

    

 

 

    

 

 

 

Total

     215,901,645        209,190,547        203,109,346  
  

 

 

    

 

 

    

 

 

 

 

* Based on K- IFRS consolidated financial statements

 

  (b) Balances of Loans by Maturity

 

As of December 31, 2017

      (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

     96,148,629        34,778,329        9,134,924        58,442,741        198,504,623  

Loans in foreign currencies

     6,746,128        1,937,429        731,676        645,162        10,060,395  

 

* Based on K- IFRS separate financial statements

 

c. Trust Business

 

As of December 31, 2017

      (unit: in millions of Won)

 

Type

   2017      2016      2015  
   Trust Funds      Trust Fees      Trust Funds      Trust Fees      Trust Funds      Trust Fees  

Money trust

     30,131,764        139,025        26,019,180        73,814        23,980,475        49,973  

Property trust

     12,942,930        4,507        12,714,338        4,803        9,354,003        1,323  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

     43,074,694        143,532        38,733,518        78,617        33,334,478        51,296  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

* Trust funds indicate average balances.

 

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3. Funding Sources and Use of Funds

 

a. Source of Funds

[Bank Accounts]

(Unit: in millions of Won, %)

 

   

Funding

Source

  2017     2016     2015  

Classification

    Average
Balance
    Interest
Rate
    Proportion     Average
Balance
    Interest
Rate
    Proportion     Average
Balance
    Interest
Rate
    Proportion  

Local Currency funds

  Deposits received in local currency     187,332,008       1.26       66.02       183,440,285       1.38       65.35       169,919,620       1.70       64.76  
  Certificates of deposit     4,500,100       1.66       1.59       3,466,223       1.70       1.23       1,879,832       1.92       0.72  
  Borrowings in local currency     6,213,903       1.32       2.19       6,709,080       1.45       2.39       6,689,135       1.77       2.55  
  Call money in local currency     1,254,623       1.23       0.44       1,159,188       1.32       0.41       1,370,253       1.62       0.52  
  Others     20,168,307       2.29       7.11       18,532,241       2.60       6.60       18,944,493       2.95       7.22  
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
  Subtotal     219,468,941       1.37       77.34       213,307,017       1.50       75.98       198,803,334       1.82       75.77  
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Foreign Currency funds

  Deposits received in foreign currencies     14,338,927       0.51       5.05       14,838,684       0.47       5.29       11,568,322       0.44       4.41  
  Borrowings in foreign currencies     7,267,096       1.38       2.56       8,595,575       0.86       3.06       9,245,073       0.53       3.52  
  Call money in foreign currencies     980,001       1.14       0.35       1,401,294       0.70       0.50       1,199,484       0.53       0.46  
  Debentures in foreign currencies     3,649,805       3.11       1.29       3,950,614       2.54       1.41       4,851,289       2.72       1.85  
  Others     574,786       0.14       0.20       531,877       0.29       0.19       650,409       0.66       0.25  
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
  Subtotal     26,810,615       1.12       9.45       29,318,044       0.87       10.44       27,514,577       0.88       10.49  
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Others

  Total capital     20,134,843       —         7.10       19,617,484       —         6.99       18,501,137       —         7.05  
  Provisions     351,750       —         0.12       412,553       —         0.15       640,666       —         0.24  
  Others     16,993,430       —         5.99       18,070,427       —         6.44       16,907,843       —         6.44  
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
  Subtotal     37,480,023       —         13.21       38,100,463       —         13.57       36,049,647       —         13.74  
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total

    283,759,580       1.16       100       280,725,524       1.23       100.00       262,367,557       1.47       100.00  
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

* Based on K-IFRS separate financial statements

 

14


Table of Contents

[Trust Accounts]

(Unit: in millions of Won, %)

 

Type

  

Funding

Source

  2017     2016     2015  
     Average
Balance
    Interest
Rate
    Share     Average
Balance
    Interest
Rate
    Share     Average
Balance
    Interest
Rate
    Share  

Cost

  

Money trusts

    30,131,764       1.70       69.76       26,019,180       1.52       66.98       23,980,475       1.88       71.71  
  

Borrowings

    —         —         —         —         —         —         —         —         —    
    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
  

Subtotal

    30,131,764       1.70       69.76       26,019,180       1.52       66.98       23,980,475       1.88       71.71  
    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
Non-cost   

Property trusts

    12,942,930       —         29.97       12,714,338         32.73       9,354,003         27.97  
  

Special reserves

    39,082       —         0.09       38,160         0.10       37,989         0.11  
  

Other

    76,821       —         0.18       72,810         0.19       70,265         0.21  
    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
  

Subtotal

    13,058,833       —         30.24       12,825,308         33.02       9,462,257         28.29  
    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total

       43,190,597       —         100.00       38,844,488         100.00       33,442,732         100.00  
    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

15


Table of Contents
b. Fund Management Performance

[Bank Accounts]

(Unit: in millions of Won, %)

 

Type

 

Managed Item

  2017     2016     2015  
    Average
Balance
    Interest
Rate
    Share     Average
Balance
    Interest
Rate
    Share     Average
Balance
    Interest
Rate
    Share  

Funds in

local

currency

 

Deposits in local currency

    3,424,567       1.28       1.21       3,171,599       1.34       1.13       2,580,842       1.72       0.98  
 

Marketable securities in local currency

    35,186,537       1.95       12.40       33,880,119       2.58       12.07       32,994,958       2.79       12.58  
 

Loans in local currency

    194,161,817       3.05       68.42       189,079,324       3.10       67.35       176,631,188       3.42       67.32  
 

Guarantee payments

    26,639       3.14       0.01       51,254       0.89       0.02       64,533       1.89       0.02  
 

Call loans in local currency

    2,275,748       1.33       0.80       3,581,382       1.41       1.28       2,083,053       1.64       0.79  
 

Private placed ponds

    185,092       5.94       0.07       247,292       5.19       0.09       280,702       5.98       0.11  
 

Credit card receivables

    28       —         0.00       24       —         0.00       —         —         0.00  
 

Other

    4,235,478       1.99       1.49       4,580,215       2.04       1.63       4,313,781       2.61       1.64  
 

Bad debt expense in local currency (-)

    (1,284,188     —         (0.45     (1,925,177     —         (0.69     (2,482,955     —         (0.95
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
 

Subtotal

    238,211,718       2.85       83.95       232,666,033       2.98       82.88       216,466,103       3.31       82.50  
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Funds in foreign

currencies

 

Deposits in foreign currencies

    3,791,184       0.67       1.34       3,761,286       0.43       1.34       2,872,735       0.28       1.09  
 

Marketable securities in foreign currencies

    2,735,707       1.07       0.96       1,752,884       1.13       0.62       1,375,146       1.51       0.52  
 

Loans in foreign currencies

    10,790,442       2.51       3.80       13,371,873       1.95       4.76       14,206,736       1.65       5.41  
 

Call loans in foreign currencies

    2,506,588       1.33       0.88       2,940,858       0.85       1.05       2,040,819       0.59       0.78  
 

Bills bought

    7,417,500       1.88       2.61       7,110,164       1.53       2.53       6,899,811       1.38       2.63  
 

Other

    48,472       2.50       0.02       13,829       9.72       0.00       17,047       6.96       0.01  
 

Bad debt expense in foreign currencies (-)

    (332,301     —         (0.12     (312,211     —         (0.11     (191,224     —         (0.07
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
 

Subtotal

    26,957,590       1.85       9.50       28,638,685       1.51       10.20       27,221,069       1.37       10.38  
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Other

 

Cash

    1,201,343       —         0.42       1,169,566       —         0.42       1,116,715       —         0.43  
 

Property and equipment for business purposes

    2,352,466       —         0.83       2,325,893       —         0.83       2,328,130       —         0.89  
 

Other

    15,036,463       —         5.30       15,925,347       —         5.67       15,235,540       —         5.81  
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
 

Subtotal

    18,590,272       —         6.55       19,420,807       —         6.92       18,680,385       —         7.12  
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total

    283,759,580       2.57       100.00       280,725,524       2.62       100.00       262,367,557       2.87       100.00  
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

* Based on K-IFRS separate financial statements

 

16


Table of Contents

[Trust Accounts]

(Unit: in millions of Won, %)

 

Type

 

Managed Item

  2017     2016     2015  
    Average
Balance
    Interest
Rate
    Share     Average
Balance
    Interest
Rate
    Share     Average
Balance
    Interest
Rate
    Share  

Profit

 

Loans

    27,539       3.62       0.06       23,088       4.21       0.06       19,482       4.05       0.06  
 

Securities

    8,038,329       3.25       18.61       4,701,052       1.93       12.10       3,470,064       (0.57     10.38  
 

Other

    22,962,574       1.47       53.17       22,237,766       1.63       57.25       21,231,787       2.00       63.49  
 

Reserves for bond ratings(-)

    (45     0.00       0.00       (36     0.00       0.00       (68     0.00       0.00  
 

Present value discount(-)

    (72     0.00       0.00       (215     0.00       0.00       (414     0.00       0.00  
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
 

Subtotal

    31,028,325       1.93       71.84       26,961,655       1.68       69.41       24,720,851       1.64       73.92  
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Non-profit

 

Subtotal

    12,162,272       —         28.16       11,882,833         30.59       8,721,881       —         26.08  
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total

    43,190,597       —         100.00       38,844,488       —         100.00       33,442,732       —         100.00  
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

4. Other Information Necessary for Making Investment Decisions

 

a. Selected Ratios

BIS Capital Adequacy Ratios

(unit: in 100 millions of Won, % )

 

Type

   2017      2016      2015  

Equity capital (A)

     226,032        229,005        210,514  

Risk weighted assets (B)

     1,467,622        1,497,281        1,540,709  

Capital adequacy ratio (A/B)

     15.40        15.29        13.66  

 

* BIS (Bank for International Settlements) Capital Adequacy Ratios : Equity capital / Risk weighted assets * 100
* Based on K-IFRS consolidated financial statements and Basel III standards

Liquidity Ratios

(unit: %)

 

Type

   2017      2016      2015  

Liquidity coverage ratio (**)

     101.23        109.61        106.67  

Foreign currency liquidity coverage ratio(***)

     103.77        —          —    

Ratio of business purpose premises and equipment

     13.49        13.49        14.37  

 

* Based on K-IFRS financial statements
** 2017: Based on average balance of December
   2016 & 2015 : Based on ending balance of December
*** Newly introduced in 2017 (Current requirement is to be over 60% in 2017, target ratio increases every year by 10%, for the requirement to be over 80% in 2019)
   2017: Based on average balance of December

 

17


Table of Contents
b. Asset Quality

(unit: in 100 millions of Won)

 

Type

   2017     2016     2015  
Total loans    Total      2,221,185       2,166,122       2,108,424  
     

 

 

   

 

 

   

 

 

 
   Corporate      1,155,213       1,140,252       1,185,857  
     

 

 

   

 

 

   

 

 

 
   Household      1,065,972       1,025,870       922,567  
     

 

 

   

 

 

   

 

 

 

Sub-standard and below loans

Sub-standard and below loan ratio

   Total      18,396       21,121       31,009  
     

 

 

   

 

 

   

 

 

 
        0.83     0.98     1.47
     

 

 

   

 

 

   

 

 

 
   Corporate      15,826       18,237       27,701  
        1.37     1.60     2.34
   Household      2,570       2,884       3,308  
        0.24     0.28     0.36

Delinquency ratio

  

Based on total loans

(after seasonal adjustment)

     0.34     0.46     0.82
        (0.38 %)      (0.52 %)      (0.93 %) 
  

Based on corporate loans

(after seasonal adjustment)

     0.45     0.61     1.39
        (0.49 %)      (0.66 %)      (1.57 %) 
  

Based on household loans

(after seasonal adjustment)

     0.28     0.31     0.39
        (0.31 %)      (0.33 %)      (0.43 %) 

 

* Based on K-IFRS separate financial statements

 

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: in millions of Won)

 

Classification

   2017     2016     2015  

ASSETS

      

Cash and cash equivalents

     6,908,286       7,591,324       6,644,055  

Financial assets at fair value through profit or loss

     5,843,077       5,650,724       5,132,657  

Available-for-sale financial assets

     15,352,950       20,817,583       17,170,592  

Held-to-maturity financial assets

     16,749,296       13,910,251       13,621,640  

Loans and receivables

     267,106,204       258,392,633       244,842,062  

Investments in joint ventures and associates

     417,051       439,012       643,861  

Investment properties

     371,301       358,497       351,496  

Premises and equipment

     2,477,545       2,458,025       2,471,206  

Intangible assets and goodwill

     518,599       483,739       419,806  

Assets held for sale

     48,624       2,342       17,904  

Current tax assets

     4,722       6,229       6,782  

Deferred tax assets

     280,130       232,007       210,597  

Derivative assets

     59,272       140,577       183,128  

Net defined benefit assets

     —         70,938       —    

Other assets

     158,404       128,846       143,286  
  

 

 

   

 

 

   

 

 

 

Total assets

     316,295,461       310,682,727       291,859,072  
  

 

 

   

 

 

   

 

 

 

LIABILITIES

      

Financial liabilities at fair value through profit or loss

     3,427,909       3,803,358       3,460,561  

Deposits due to customers

     234,695,084       221,020,411       209,141,826  

Borrowings

     14,784,706       18,769,515       20,033,917  

Debentures

     27,869,651       23,565,449       21,898,859  

Provisions

     410,470       428,477       516,601  

Net defined benefit liability

     43,264       64,666       99,691  

Current tax liabilities

     232,600       171,192       108,943  

Deferred tax liabilities

     22,681       22,023       19,379  

Derivative liabilities

     67,754       7,221       —    

Other financial liabilities

     13,892,461       21,985,086       16,964,206  

Other liabilities

     283,981       299,376       305,174  
  

 

 

   

 

 

   

 

 

 

Total liabilities

     295,730,561       290,136,774       272,549,157  
  

 

 

   

 

 

   

 

 

 

EQUITY

      

Owners’ equity

     20,365,892       20,386,160       19,188,472  

Capital stock

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

Hybrid securities

     3,017,888       3,574,896       3,334,002  

Capital surplus

     285,880       286,331       294,259  

Other equity

     (1,939,274     (1,468,025     (1,547,303

Retained earnings

     15,620,006       14,611,566       13,726,122  

Non-controlling interests

     199,008       159,793       121,443  
  

 

 

   

 

 

   

 

 

 

Total equity

     20,564,900       20,545,953       19,309,915  
  

 

 

   

 

 

   

 

 

 

Total liabilities and equity

     316,295,461       310,682,727       291,859,072  
  

 

 

   

 

 

   

 

 

 

Number of Consolidated Subsidiaries

     53       74       71  

 

19


Table of Contents

Summary Consolidated Statement of Comprehensive Income

 

(The Bank and its Consolidated Subsidiaries)

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

 

Classification

   2017     2016     2015  

OPERATING INCOME:

     2,156,742       1,574,206       1,351,586  

Net interest income

     5,220,650       5,019,544       4,761,900  

Net fees and commissions income

     1,070,466       937,131       976,796  

Dividend income

     124,992       184,510       102,923  

Gain on financial instruments at fair value through profit or loss

     (104,827     114,387       240,342  

Gain on available-for-sale financial assets

     192,708       (1,035     (3,281

Impairment losses due to credit loss

     (785,133     (834,076     (966,646

General and administrative expenses

     (3,530,801     (3,478,476     (3,150,387

Other net operating income (expenses)

     (31,313     (367,779     (610,061

Non-operating income

     (207,236     (20,817     100,360  

Net income before income tax expense from continuing operations

     1,949,506       1,553,389       1,451,946  

Income tax expense from continuing operations

     419,418       275,856       376,554  

Net income

     1,530,088       1,277,533       1,075,392  

Net income attributable to owners

     1,512,148       1,261,266       1,059,157  

Net income attributable to the non-controlling interests

     17,940       16,267       16,235  

Other comprehensive income (loss), net of tax

     (276,796     77,894       31,162  

Items that will not be reclassified to profit or loss

     10,497       34,162       (78,267

Items that may be reclassified to profit or loss

     (287,293     43,732       109,429  
  

 

 

   

 

 

   

 

 

 

Total comprehensive income

     1,253,292       1,355,427       1,106,554  
  

 

 

   

 

 

   

 

 

 

Comprehensive income attributable to the owners

     1,249,057       1,332,614       1,094,870  

Comprehensive income attributable to non-controlling interests

     4,235       22,813       11,684  

NET INCOME PER SHARE:

     —        

Basic earnings per common share

     1,999       1,567       1,301  

Diluted earnings per common share

     1,999       1,567       1,301  

 

20


Table of Contents
2. Condensed Financial Statements (Separate)

Summary Statement of Financial Position

 

(The Bank)    (unit: in millions of Won)

 

Classification

   2017     2016      2015  

ASSETS

       

Cash and cash equivalents

     5,328,960       6,104,029        5,440,326  

Financial assets at fair value through profit or loss

     4,133,724       4,076,872        3,569,625  

Available-for-sale financial assets

     14,186,704       18,105,862        15,869,654  

Held-to-maturity financial assets

     16,638,727       13,792,266        13,527,452  

Loans and receivables

     248,810,624       241,508,048        231,083,160  

Investments in subsidiaries and associates

     4,148,795       3,779,169        3,730,247  

Investment properties

     350,235       348,393        344,892  

Premises and equipment

     2,374,590       2,342,280        2,341,506  

Intangible assets

     303,325       242,230        187,520  

Assets held for sale

     46,183       2,342        17,904  

Current tax assets

     —         —          —    

Deferred tax assets

     238,543       162,211        172,368  

Derivative assets

     59,272       140,577        183,128  

Net defined benefit assets

     —         70,938        —    

Other assets

     117,889       96,926        109,126  
  

 

 

   

 

 

    

 

 

 

Total assets

     296,737,571       290,772,143        276,576,908  
  

 

 

   

 

 

    

 

 

 

LIABILITIES

       

Financial liabilities at fair value through profit or loss

     3,416,978       3,793,479        3,448,180  

Deposits due to customers

     224,384,156       211,382,380        201,353,128  

Borrowings

     13,662,984       16,060,821        18,760,947  

Debentures

     21,707,466       18,166,057        17,259,749  

Provisions

     368,027       380,473        467,887  

Net defined benefit liability

     14,284       —          45,678  

Current tax liabilities

     212,376       148,672        77,190  

Deferred tax liabilities

     —         —          —    

Derivative liabilities

     12,103       7,221        —    

Other financial liabilities

     13,029,421       20,827,284        16,111,469  

Other liabilities

     135,686       153,238        163,362  
  

 

 

   

 

 

    

 

 

 

Total liabilities

     276,943,481       270,919,625        257,687,590  
  

 

 

   

 

 

    

 

 

 

EQUITY

       

Capital stock

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

Hybrid securities

     3,017,888       3,574,896        3,334,002  

Capital surplus

     269,533       269,533        269,533  

Other equity

     (135,282     138,542        106,016  

Retained earnings

     13,260,559       12,488,155        11,798,375  
  

 

 

   

 

 

    

 

 

 

Total equity

     19,794,090       19,852,518        18,889,318  
  

 

 

   

 

 

    

 

 

 

Total liabilities and equity

     296,737,571       290,772,143        276,576,908  
  

 

 

   

 

 

    

 

 

 

 

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Summary Statement of Comprehensive Income

 

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

 

Classification

   2017     2016     2015  

OPERATING INCOME:

     1,790,558       1,270,501       1,090,372  

Net interest income

     4,390,603       4,222,447       4,052,479  

Net fees and commissions income

     931,021       842,883       856,343  

Dividend income

     125,599       220,015       169,009  

Gain on financial instruments at fair value through profit or loss

     (96,983     97,225       220,282  

Gain on available-for-sale financial assets

     135,003       35,525       (7,960

Impairment losses due to credit loss

     (553,204     (640,443     (766,169

General and administrative expenses

     (3,128,725     (3,115,371     (2,846,490

Other net non operating income (expenses)

     (12,756     (391,780     (587,122

Non-operating income

     (170,336     40,144       144,635  

Net income before income tax expense

     1,620,222       1,310,645       1,235,007  

Income tax expense

     344,110       245,043       300,418  

Net income

     1,276,112       1,065,602       934,589  

Other comprehensive income (loss), net of tax

     (65,666     32,526       (8,583

Items that will not be reclassified to profit or loss

     16,566       33,191       (73,591

Items that may be reclassified to profit or loss

     (82,232     (665     65,008  
  

 

 

   

 

 

   

 

 

 

Total comprehensive income

     1,210,446       1,098,128       926,006  
  

 

 

   

 

 

   

 

 

 

NET INCOME PER SHARE:

      

Basic earnings per common share

     1,648       1,277       1,116  

Diluted earnings per common share

     1,648       1,277       1,116  

 

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IV. Independent Auditor’s Opinion

 

1. Independent Auditor’s Opinion

 

     2017    2016    2015

Auditor

   Deloitte Anjin LLC    Deloitte Anjin LLC    Deloitte Anjin LLC

Auditor’s Opinion

   Unqualified Opinion    Unqualified Opinion    Unqualified Opinion

 

2. Compensation to the Independent Auditor for the Past Three Years

 

a. Audit Services

 

Term

  

Auditor

  

Description

   Fee    Total Time  

2017

   Deloitte Anjin LLC    Closing audit    KRW
1,786 million
     15,883 hours  
      Interim audit (including internal accounting management system)         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
1,561 million
     7,515 hours  
     

Interim audit (including internal accounting management system)

        4,210 hours  
     

3Q review

        4,991 hours  
     

1H review

        3,526 hours  
      1Q review         3,920 hours  

2015        

   Deloitte Anjin LLC    Closing audit    KRW 1,516

million

     7,659 hours  
     

Interim audit (including internal accounting management system)

        4,350 hours  
     

3Q review

        3,785 hours  
     

1H review

        3,836 hours  
     

1Q review

        3,778 hours  

 

b. Non-Audit Services

 

Term

   Date of Execution of
Agreement
  

Description of Service

   Service Term    Fees

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 ~ Apr.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

2015

   May.14.2015    Review of Japanese F/S related to Samurai bonds    May. and Sep.2015    KRW 74 million
   May.14.2015    Issuance of GMTN-related comfort letter    May. 2015    USD 110,000
   Apr.03.2015    Tax adjustment    Each quarter and end of term    KRW 110 million
   Apr.03.2015    PCAOB and SOX Auditing    May.1.2015~ Apr.30.2016    KRW 1,094 million
   Jan.05.2015    Issuance of GMTN-related comfort letter    Jan. 2015    USD 60,000

 

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.

 

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Table of Contents
  b. Committees under the Board of Directors

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

 

  (a) Board of Directors Management Committee

 

  (b) Risk Management Committee

 

  (c) Compensation Committee

 

  (d) Audit Committee

 

  (e) Committee for Recommending Officer Candidates

 

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)

Kwang-Woo Choi (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)

Kwang-Woo Choi (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)

Kwang-Woo Choi (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 first extraordinary board of directors’ meeting held on January 4, 2017.

 

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2. Affiliated Companies (As of December 31, 2017)

 

LOGO

 

25


Table of Contents
VI. Shareholder Information

 

1. Share Distribution

 

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

 

As of December 31, 2017         (units: shares, %)

Name

   Relation    Type    Shares Held     

Notes

         Beginning balance      Ending balance     
         Stock      Share      Stock      Share     

Korea Deposit Insurance Corporation (KDIC)

   Largest

Shareholder

   Common      157,977,161        23.37        124,604,797        18.43      Note 1)
        

 

 

    

 

 

    

 

 

    

 

 

    

Total

      Common      157,977,161        23.37        124,604,797        18.43     
        

 

 

    

 

 

    

 

 

    

 

 

    
      Others      —          —          —          —       
        

 

 

    

 

 

    

 

 

    

 

 

    

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

 

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Table of Contents
b. Changes in the largest shareholder

 

As of December 31, 2017    (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.

 

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Table of Contents
c. Share Ownership of More Than 5%

 

As of December 31, 2017    (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        —    
   Nobis1, Inc. (IMM PE)      40,560,000        6.00        —    

Employee Stock Ownership Association

     36,264,908        5.36        —    

 

d. Minority Shareholders

As of December 31, 2017

 

Items

   Number of
shareholders
     Ratio(%)      Number of
shares
     Ratio(%)  

Minority Shareholders

     44,729        99.96        278,666,727        41.21  

 

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Table of Contents
2. Stock Price and Stock Market Performance

 

a. Domestic Stock Market

(units: Won, shares)

 

Period

   July
2017
     August
2017
     September
2017
     October
2017
     November
2017
     December
2017
 

Common Stock

   High      19,950        19,200        18,550        18,100        16,700        16,300  
   Low      18,350        18,200        17,050        16,400        15,500        15,400  
   Average      18,788        18,655        17,648        17,406        16,016        15,955  

Monthly Trade Volume

   High      3,304,943        6,655,577        2,954,925        2,935,518        2,855,053        3,272,458  
   Low      896,910        629,366        907,532        838,703        727,854        788,707  
   Monthly Total      36,423,732        36,919,458        31,593,313        25,597,320        36,186,699        24,046,612  

 

* Source: KRX KOSPI Market
* Share prices are based on closing prices.

 

b. Foreign Stock Market (NYSE)

(units: US Dollars, ADRs)

 

Period

   July
2017
     August
2017
     September
2017
     October
2017
     November
2017
     December
2017
 

ADR

   High      53.50        51.85        49.53        47.76        45.32        45.72  
   Low      48.25        47.80        44.49        43.90        41.20        42.88  
   Average      50.15        49.72        46.31        46.32        43.34        44.58  

Won Conversion

   High      59,711        58,170        55,760        54,718        49,054        49,405  
   Low      55,453        54,238        50,340        49,387        46,172        46,884  
   Average      56,892        56,225        52,405        52,416        47,896        48,399  

Monthly Trade Volume

   High      65,900        40,800        38,500        56,800        52,300        83,400  
   Low      2,600        3,100        5,600        4,500        1,300        5,100  
   Monthly Total      293,200        314,500        305,600        309,500        276,600        445,100  

 

* 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 and Executives

As of December 31, 2017

 

Position

   Name    Common
Stock
Owned
     Term
Commencement Date
     Expiration of Term

President and CEO

   Registered    Tae-Seung Sohn      10,296        December 22, 2017 ~      December 21, 2020

Standing Member of Audit Committee

   Registered    Jung-Sik Oh      3,780        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    Kwang-Woo Choi      —          March 25, 2016 ~      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      8,000        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      —          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      —          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        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      —          December 22, 2017 ~      December 8, 2019

Managing Director

   Non-Registered    Dae-Jin Lee      101        February 3, 2017 ~      December 8, 2018

Note 1) Date of the 2019 annual general meeting of shareholders

Note 2) Date of the 2018 annual general meeting of shareholders

Non-standing director Kwang-Woo Choi retired and Chang-Sik Bae was newly appointed as a non-standing director at 2018 anuual general meeting of shareholders

Note 3) President Tae-Seung Sohn acquired 5,000 shares on March 9, 2018and 5,000 shares on March 27, 2018.

Standing member of the Audit Committee Jung –Sik Oh acquired 1,732 shares on March 12, 2018 and 698 shares on March 30, 2018.

Outside director Sung-Tae Ro acquired 5,000 shares on March 27, 2018.

Outside director Sang-Yong Park acquired 1,000 shares on March 27, 2018.

Outside director Sang-Hoon Shin acquired 5,000 shares on March 27, 2018.

 

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Table of Contents

Note 4) Common stock owned by executives exclude stocks owned through the Employee Stock Ownership Association

Note 5) Term Commencement Date: The date of inauguration for registered directors, the date of appointment for non-registered directors

 

2. Employee Status

 

As of December 31, 2017    (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

     13,845        208        613        107        14,458        16.3        1,251,807        87     

 

* Average years of continuous service excludes contract employees and locally hired employees overseas.
* Excludes management salaries (sales center head or higher) and overseas salaries.

 

3. Directors’ Compensation

As of December 31, 2017

 

     (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        936        468     

Outside Directors (excludes audit committee members)

     3        203        68     
  

 

 

    

 

 

    

 

 

    

 

 

 

Audit Committee Members

     4        583        146     
  

 

 

    

 

 

    

 

 

    

 

 

 

 

* Number of persons : includes the outside directors and audit committee members that resigned in 2017
   (As of December 31, 2017, there is two registered directors, three outside directors and three Audit Committee members)
* Total compensation : cumulative amount paid from January to December of 2017
* Average compensation per person : Total compensation / Total number of persons (excludes the President and CEO appointed on December 22. 2017)
* Registered Directors include one non-standing director (There is no compensation paid to the non-standing director from the KDIC)

 

VIII. Related Party Transactions

Extensions of Credit to Major Shareholders, Etc.

As of December 31, 2017

 

     (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 2, 2018  
     CMA        100,000        July 1, 2017        June 30, 2018  

Woori Card

     Loans        250,000        April 1, 2013        March 2, 2018  

Woori P&S

     Loans        12,289        May 25, 2016        May 25, 2026  
     Loans        600        November 28, 2017        November 28, 2018  

 

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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: April 2, 2018     By:  

/s/ Won Duk Lee

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

 

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