Global Medium-Term Note Programme

OFFERING CIRCULAR SUPPLEMENTTO THE OFFERING CIRCULAR DATED 28TH OCTOBER, 2009

U.S.$7,000,000,000

(incorporated with limited liability under the laws of the Republic of Korea)

Global Medium-Term Note Programme

This offering circular supplement (the “Offering Circular Supplement”) is prepared in connectionwith the U.S.$7,000,000,000 Global Medium Term Note Programme (the “Programme”) of WooriBank (the “Issuer” or the “Bank”) and is supplemental to, and should be read in conjunction with,the Offering Circular dated 28th October, 2009 (the “Original Offering Circular”). The statementsappearing on the cover page and pages ii to vii of the Original Offering Circular are deemed repeatedherein, except that references therein to the “Offering Circular” are deemed to be to the OriginalOffering Circular as supplemented by this Offering Circular Supplement.

Words and expressions defined in the Original Offering Circular shall have the same meanings whenused in this Offering Circular Supplement. The Issuer accepts responsibility for the informationcontained in this Offering Circular Supplement. To the best of the knowledge and belief of the Issuer(which has taken all reasonable care to ensure that such is the case), the information contained in thisOffering Circular Supplement is in accordance with the facts and does not omit anything likely toaffect the import of such information. Save as disclosed in this Offering Circular Supplement, therehas been no material change and no material new matter has arisen since the date of the OriginalOffering Circular. If the information in this Offering Circular Supplement differs from the informationin the Original Offering Circular, prospective Noteholders should rely on the information in thisOffering Circular Supplement.

Arranger

BofA Merrill Lynch

Dealers

Barclays Capital

BofA Merrill Lynch

Crédit Agricole CIB

Daiwa Capital Markets Singapore Limited

Goldman Sachs International

J.P. Morgan

Nomura International

UBS Investment Bank

BNP PARIBAS

Citi

Credit Suisse

Deutsche Bank

HSBC

Morgan Stanley

The Royal Bank of Scotland

Woori Investment & Securities

The date of this Offering Circular Supplement is 26th March, 2010.

TABLE OF CONTENTS

Page

RECENT DEVELOPMENTS ................................................................................................... S-1

CAPITALISATION OF THE BANK ........................................................................................ S-4

SELECTED FINANCIAL DATA ............................................................................................. S-5

SELECTED NON-CONSOLIDATED STATISTICAL INFORMATION...................................... S-10

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION ANDRESULTS OF OPERATIONS ............................................................................................... S-12

INDEX TO FINANCIAL STATEMENTS ................................................................................. F-1

i

RECENT DEVELOPMENTS

This section provides information that supplements the information about the Bank included on pages6-28 and pages 213-218 of the Original Offering Circular.

Risks relating to the Bank — Corporate credit portfolio

The Bank has exposure to member companies of the Kumho Asiana Group, and financialdifficulties of these companies may adversely impact the Bank.

Several member companies of the Kumho Asiana Group, one of Korea’s largest chaebols, have beenexperiencing financial difficulties, including as a result of their heavily leveraged acquisition ofDaewoo Engineering & Construction Co., Ltd. in 2006 and the subsequent global financial crisiscommencing in the second half of 2008. In January 2010, Kumho Tires Co., Inc. and Kumho IndustrialCo., Ltd. agreed with their creditors, including the Bank, to begin an out-of-court debt restructuringprogram under the Corporate Restructuring Promotion Act. In addition, Kumho Petrochemical Co.,Ltd. and Asiana Airlines announced that they would undergo a voluntary restructuring, in return forwhich their creditors, including the Bank, agreed to a suspension of payments on the two companies’debt until the end of 2010. These four companies are member companies of the Kumho Asiana Group.As of 31st December, 2009, on a non-consolidated basis, the Bank’s aggregate direct credit exposuresto Kumho Tires, Kumho Industrial, Kumho Petrochemical and Asiana Airlines, consisting primarily ofloans extended to such companies, amounted to W—1,456 billion, of which W—694 billion were classifiedas substandard or below. As of 31st December, 2009, the Bank’s allowances for credit losses withrespect to such direct credit exposures amounted to W—179 billion. In addition, as of 31st December,2009, on a non-consolidated basis, the Bank had other exposures to such companies, consistingprimarily of project finance-related exposures as well as exposure relating to put options granted tothe Bank in connection with its co-investment in Daewoo Engineering & Construction with the KumhoAsiana Group, in the aggregate amount of W—887 billion, with respect to which the Bank hasestablished allowances for credit losses of W—162 billion. Moreover, in the first quarter of 2010, theBank extended additional loans to such companies, in the aggregate amount of approximately W—560billion on a non-consolidated basis, to provide additional liquidity in connection with such companies’restructuring programs. The Bank’s allowances may not be sufficient to cover all future losses arisingfrom the Bank’s exposures to these companies. Furthermore, in the event that the financial conditionof these companies deteriorates further in the future, the Bank may be required to record additionalprovisions for credit losses, as well as charge-offs and valuation or impairment losses, which may havea material adverse effect on the Bank’s financial condition and results of operations.

Risks relating to the Bank — Other risks

The Bank and its affiliates may be involved in mergers and acquisitions in the future, whichmay adversely impact the business of the Bank or the price of the Notes.

The Government, through the KDIC, currently owns a majority of the outstanding common stock ofthe Bank’s holding company, Woori Finance Holdings. The Government has announced that it plansto dispose of or reduce its controlling interest in Woori Finance Holdings, including potentiallythrough a merger of Woori Finance Holdings with another Korean financial institution. Woori FinanceHoldings has also announced that, as part of its strategy, it intends to continue to seek opportunitiesto expand its overseas operations, including potentially through acquisitions and investments in theU.S., Europe and Asia. Depending on their nature, size, structure and timing, any such mergers,acquisitions and investments may have a significant impact, directly or indirectly, on the business andoperations of Woori Finance Holdings and its affiliates, including the Bank and its subsidiaries. Forexample, such transactions may require the Bank and its subsidiaries to integrate their operations andsystems with those of other financial institutions and to reorganize or reduce overlapping personnel,

S-1

branches, networks and administrative functions. Such transactions may also result in increasedcapital requirements, greater credit and other exposures, diversion of management attention, loss ofcustomers and labor unrest. Accordingly, any such future transactions may have a material adverseeffect on the business, financial condition and results of operations of the Bank and the price of theNotes.

Changes in Management

On 25th March, 2010, the Bank held its ordinary general meeting of stockholders. At such meeting,eight persons were elected as Non-Standing Directors of the Bank, including five persons (Pal SeungLee, Yong Man Rhee, Chang Ryul Baik, Chang Young Jun and Sung Hwan Shin) who were previouslyserving as Non-Standing Directors and three persons (Byung Sam Yu, Hyuk Choi and Kang Sik Lee)who were newly elected. At such meeting, Soon Woo Lee was also re-elected as a Standing Directorof the Bank. As a result of such changes to the Bank’s board of directors, the membership of certaincommittees of the board of directors has changed.

Byung Sam Yu currently serves as the Dean of the Graduate School of Economics at Yonsei University.He previously was an assistant professor at Pennsylvania State University. He holds a B.A. in statisticsfrom Yonsei University and a Ph.D. in economics from University of California at San Diego.

Hyuk Choi currently serves as a professor at the College of Business at Seoul National University. Hepreviously served as the chairman of the Korea Securities Association. He holds a B.A. in businessadministration from Seoul National University and an M.B.A. and a Ph.D. in business administrationfrom University of Chicago.

Kang Sik Lee currently serves as a general manager of risk management at the Korea DepositInsurance Corporation. He previously served as the chief legal officer at the Korea Deposit InsuranceCorporation. He holds a B.A. in economics from Konkuk University.

In addition, effective as of 11th December, 2009, the Bank effected certain changes to its ExecutiveOfficers. Following such changes, in addition to the two Standing Directors (Chong Hwi Lee and SoonWoo Lee) who are also Executive Officers, the Bank currently has the following twelve ExecutiveOfficers:

Name Date of Birth Position

Kyoung Wan Kim .... 23rd August, 1956 Executive Vice-President/Head of Corporate BankingBusiness Unit

Ha Jung Kim............ 10th June, 1954 Executive Vice-President/Head of Small & MediumCorporate Banking Business Unit

Chang Shik Lee ....... 19th April, 1955 Executive Vice-President/Institutional BankingBusiness Unit

Seung Nam Choi ...... 6th September, 1956 Executive Vice-President/Head of Financial MarketBusiness Unit

Ching Han Chung .... 10th August, 1954 Executive Vice-President/Head of Credit CardBusiness Unit

Si Byung Kim .......... 6th November, 1956 Executive Vice-President/Global Head of InvestmentBanking Group

Rok Hwang .............. 15th March, 1956 Executive Vice-President/Head of Human ResourcesUnit

S-2

Name Date of Birth Position

Yong Heung Cho...... 23rd March, 1956 Executive Vice-President/Head of Finance &Management Planning Unit

Chil Am Choi .......... 29th May, 1955 Executive Vice-President/Consumer Banking BusinessUnit

Yang Jin Kim........... 1st January, 1956 Executive Vice-President/Head of Operation &Support Unit

Jeong Han Kim ........ 28th October, 1956 Executive Vice-President/Head of Risk ManagementUnit

Man Kyu Choi ......... 14th October, 1955 Executive Vice-President/Head of Credit Support Unit

None of the Executive Officers is involved in any significant business activities outside the Bank.

S-3

CAPITALISATION OF THE BANK

This section provides information that supplements the information about the Bank included on page81 of the Original Offering Circular.

The following table sets forth the Bank’s consolidated capitalisation as of 31st December, 2009. Thisinformation has been extracted from the Bank’s audited consolidated financial statements as of and forthe year ended 31st December, 2009 included elsewhere in this Offering Circular Supplement.

As of 31st December,2009(1)

(in billions of Won)Indebtedness (including current portion):Borrowings ........................................................................................................ W—47,526

Shareholders’ equity:Capital stock, par value W—5,000

Authorised share capital (3,000 million shares)Issued and outstanding common stock (695,956,580 shares)............................ W—3,480Issued and outstanding convertible preferred stock (70,000,000 shares) .......... 350

Capital surplus ................................................................................................... 812Accumulated other comprehensive income ......................................................... 1,136Retained earnings

Legal reserve .................................................................................................. 999Voluntary reserves .......................................................................................... 5,653Retained earnings before appropriations.......................................................... 954

Retained earnings............................................................................................... 7,851Minority interests............................................................................................... 6

Total shareholders’ equity ............................................................................... 13,635Total capitalisation ...................................................................................... 61,161

Note:

(1) There has been no material change in the capitalisation of the Bank since 31st December, 2009.

S-4

SELECTED FINANCIAL DATA

This section provides information that supplements the information about the Bank included on pages82-87 of the Original Offering Circular.

The following tables set forth selected non-consolidated and consolidated financial information of theBank as of and for the years ended 31st December, 2008 and 2009, which have been derived from theBank’s non-consolidated and consolidated financial statements as of and for the years ended 31stDecember, 2008 and 2009.

The audited consolidated financial statements as of and for the years ended 31st December, 2008 and2009 included elsewhere in this Offering Circular Supplement have been audited by the Bank’sindependent accountants, Deloitte Anjin LLC, a member firm of Deloitte Touche Tohmatsu.

The financial statements included elsewhere in this Offering Circular Supplement have been preparedin accordance with Korean GAAP together with, where applicable, Korean bank accountingguidelines, which are different from U.S. GAAP in material respects. See “Summary of SignificantDifferences between Korean GAAP and U.S. GAAP” in the Original Offering Circular.

Non-Consolidated Financial Information of the Bank

The following tables set forth selected non-consolidated financial information of the Bank as of andfor the years ended 31st December, 2008 and 2009. The non-consolidated financial information of theBank set forth below presents only the banking accounts of the Bank and excludes the accounts of allof the Bank’s subsidiaries (except that investments in which the Bank has more than a 15% ownershipinterest are accounted for using the equity method of accounting) and the Bank’s trust accounts, unlessotherwise specified.

As of and for the YearEnded 31st December,

2008 2009

(in billions of Won, except pershare data and number of shares)

Non-consolidated Income Statement InformationOperating income

Interest income ............................................................................... W—13,071 W—11,149Other operating income(1) ............................................................... 61,830 32,803

74,901 43,952

Operating expensesInterest expense .............................................................................. 8,457 6,753Other operating expenses(2)............................................................. 65,969 36,164

74,426 42,917

Net operating income ......................................................................... 475 1,035Non-operating income ........................................................................ 176 255Non-operating expenses ..................................................................... 69 101

Income before income tax expense ..................................................... 582 1,189Income tax expense............................................................................ 348 235

Net income ........................................................................................ W—234 W—954

Basic earnings per common share ...................................................... W—364 W—1,318

Diluted earnings per common share ................................................... W—364 W—1,270

S-5


2008 2009

(in billions of Won, except pershare data)

Non-consolidated Balance Sheet InformationAssets:

Cash and due from banks................................................................ W—14,459 W—16,029Loans, net of allowance for possible loan losses ............................. 165,623 164,223Trading securities ........................................................................... 5,587 6,931Available-for-sale securities ............................................................ 13,766 9,644Held-to-maturity securities.............................................................. 6,039 12,380Equity securities accounted for using the equity method of

accounting ................................................................................. 1,192 1,279Tangible assets ............................................................................... 1,890 1,887Other assets .................................................................................... 19,492 9,968

Total assets ................................................................................. 228,048 222,341

Liabilities and Shareholders’ Equity:Deposits ......................................................................................... W—139,361 W—147,541Borrowings ..................................................................................... 51,293 47,349Other liabilities .............................................................................. 25,473 13,822

Total liabilities ............................................................................ 216,127 208,712

Total shareholders’ equity............................................................ W—11,921 W—13,629

Notes:

(1) Includes principally gain on transaction and valuation of derivatives, gain on foreign exchange, commission income andgain on valuation and disposal of securities.

(2) Includes principally loss on transaction and valuation of derivatives, loss on foreign exchange, employee and othergeneral and administrative expenses, provision for loan losses, loss on valuation and disposal of securities andcommission expenses. Provision for loan losses amounted to W—1,382 billion in 2008 and W—1,745 billion in 2009.

S-6

Selected Ratios

Except as otherwise indicated, the following ratios are calculated using the financial statements of theBank in respect of the periods indicated on a non-consolidated basis.


2008 2009

Average return on assets(1) ................................................................... 0.11 0.41Average return on equity(1) .................................................................. 1.90 7.32Shareholders’ equity/total assets ........................................................... 5.23 6.13Non-performing credits/total credits(2) .................................................. 1.19 1.60Allowance/non-performing credits(2)..................................................... 144.05 113.7Net interest margin(3) ........................................................................... 2.24 1.88Cost-to-income ratio(4) ......................................................................... 53.20 44.00Risk-weighted (Tier I and Tier II) capital ratio(5) ................................. 11.68 14.39Core capital (Tier I) ratio(6) ................................................................. 7.69 10.40

Notes:

(1) Defined as net income divided by daily average balance of total assets or equity, as the case may be, in accordance withKorean bank accounting guidelines. Total assets include total assets in the banking accounts and assets in the trustaccounts whose principal and interest are guaranteed by the Bank in accordance with FSC reporting guidelines. For moreinformation on the Bank’s assets in trust accounts, see “Business — Asset Management — Trust Management Services”in the Original Offering Circular.

(2) Includes loans, guarantees and other credits in both the banking and trust accounts and is calculated in accordance withFSC reporting guidelines.

(3) Defined as net interest income divided by daily average balance of interest earning assets, excluding merchantbanking-related interest income and assets in accordance with FSC reporting guidelines.

(4) Calculated as the ratio of general and administrative expenses to the sum of net interest income and net non-interestincome (excluding general and administrative expenses and provisions for loan losses).

(5) Calculated as the ratio of the sum of Tier I and Tier II capital to risk-weighted assets, on a consolidated basis. For details,see “Management’s Discussion and Analysis of Financial Condition and Results of Operations — Financial Condition —Capital Adequacy.”

(6) Calculated as the ratio of core capital (Tier I) to risk-weighted assets, on a consolidated basis. For details, see“Management’s Discussion and Analysis of Financial Condition and Results of Operations — Financial Condition —Capital Adequacy.”

S-7

Consolidated Financial Information of the Bank

The following tables set forth selected consolidated financial information of the Bank as of and forthe years ended 31st December, 2008 and 2009. The consolidated financial information of the Bankand its consolidated subsidiaries set forth below presents the banking accounts of the Bank, theaccounts of all of the Bank’s subsidiaries and certain trust accounts of which the Bank guarantees thereturn of principal or principal and yield. Investments in which the Bank has more than a 15%ownership interest, but which the Bank does not control, are accounted for using the equity methodof accounting.

As of and for the Year Ended31st December,

2008 2009


Consolidated Income Statement Information:Operating income

Interest income ............................................................................... W—13,385 W—11,425Other operating income(1) ............................................................... 61,890 32,842

75,275 44,267

Operating expensesInterest expense .............................................................................. 8,618 6,868Other operating expenses(2)............................................................. 66,109 36,327

74,727 43,195

Net operating income ......................................................................... 548 1,072Non-operating income ........................................................................ 133 231Non-operating expenses ..................................................................... 74 96

Income before income tax expense and minority interests .................. 607 1,207Income tax expense............................................................................ 372 252

Income before minority interests ........................................................ 234 954Minority interests............................................................................... 1 1

Net income ........................................................................................ W—235 W—955

Net income per common shareBasic .............................................................................................. W—364 W—1,318Diluted ........................................................................................... 364 1,270

Weighted average number of common sharesBasic .............................................................................................. 681,162,059 635,956,580Diluted ........................................................................................... 751,162,059 639,025,093

Consolidated Balance Sheet Information:Assets:

Cash and due from banks................................................................ W—14,991 W—16,423Loans, net of allowance for possible loan losses ............................. 168,585 166,805Trading securities ........................................................................... 6,852 8,469Available-for-sale securities ............................................................ 13,881 9,758Held-to-maturity securities.............................................................. 6,166 12,525Equity securities accounted for using the equity method of

Accounting .................................................................................. 415 527Tangible assets ............................................................................... 1,913 1,908Other assets .................................................................................... 19,688 10,374

Total assets ................................................................................. 232,491 226,789

S-8

As of and for the Year Ended31st December,

2008 2009


Liabilities and Shareholders’ Equity:Deposits ......................................................................................... W—143,509 W—151,831Borrowings ..................................................................................... 51,797 47,526Other liabilities ............................................................................. 25,259 13,797

Total liabilities ............................................................................ 220,565 213,154

Minority interests ........................................................................ 5 6Total shareholders’ equity............................................................ W—11,926 W—13,635

Notes:

(1) Includes principally gain on transaction and valuation of derivatives, gain on foreign exchange, commission income andgain on valuation and disposal of securities.

(2) Includes principally loss on transaction and valuation of derivatives, loss on foreign exchange, employee and othergeneral and administrative expenses, provision for loan losses, loss on valuation and disposal of securities andcommission expenses. Provision for loan losses amounted to W—1,394 billion in 2008 and W—1,785 billion in 2009.

S-9

SELECTED NON-CONSOLIDATED STATISTICAL INFORMATION


Average Balance Sheets and Related Interest

The following tables show the Bank’s average balances, interest income and interest rates on anon-consolidated basis for the years ended 31st December, 2008 and 2009.

Year Ended 31st December,

2008 2009

AverageBalance

InterestIncome(1)

AverageYield

AverageBalance

InterestIncome(1)

AverageYield

(in billions of Won, except percentages)Assets ....................................................Due from banks ....................................... W—6,478 W—168 2.59% W—11,590 W—138 1.19%Loans(2)

Corporate ............................................. 101,192 6,708 6.63 109,427 5,943 5.43Consumer............................................. 53,336 3,782 7.09 54,789 2,759 5.04Credit cards(3) ...................................... 3,944 930 23.58 4,096 1,000 24.41

SecuritiesTrading ................................................ 6,600 364 5.52 6,008 244 4.06Investment ........................................... 17,270 924 5.34 22,813 946 4.15Other ................................................... 3,279 195 5.95 2,629 119 4.53

Total average interest earning assets ..... 192,099 13,071 6.80 211,352 11,149 5.28

Total average non-interest earning assets . 23,929 — — 22,689 — —

Total average assets ............................... W—216,028 W—13,071 6.05% W—234,041 W—11,149 4.76%

Year Ended 31st December,

2008 2009

AverageBalance

InterestExpense

AverageCost

AverageBalance

InterestExpense

AverageCost

(in billions of Won, except percentages)Liabilities

DepositsDemand............................................ W—4,578 W—15 0.33% W—4,805 W—17 0.35%Time and savings ............................. 93,025 4,121 4.43 115,908 3,696 3.19Installment ....................................... 207 9 4.35 164 6 3.66Certificates of deposit ...................... 17,916 1,085 6.06 11,869 621 5.23Other................................................ 13,333 540 4.05 13,762 230 1.67

Borrowings .............................................. 49,484 2,379 4.81 51,091 2,052 4.02Other ....................................................... 5,397 307 5.69 5,448 131 2.40

Total average interest bearingliabilities ............................................. 183,940 8,456 4.60 203,047 6,753 3.33

Total average non-interest bearingliabilities ............................................. 16,255 — — 18,195 — —

Total shareholders’ equity...................... 15,833 — — 12,799 — —

Total average liabilities andshareholders’ equity ........................... W—216,028 W—8,457 3.91% W—234,041 W—6,753 2.89%

S-10

Notes:

(1) Includes cash interest received on non-accrual loans.

(2) Includes non-accrual loans.

(3) Interest income on credit cards comprises interest on card loans and credit card installment purchases, merchant fees, andcommission on cash advances and credit card installment purchases.

Analysis of Changes in Net Interest Income — Volume and Rate Analysis

The following table provides an analysis of changes in interest income, interest expense and netinterest income based on changes in volume and changes in rates, on a non-consolidated basis, for theyear ended 31st December, 2009 compared to the year ended 31st December, 2008. Information isprovided with respect to: (1) effects attributable to changes in volume (changes in volume multipliedby prior rate) and (2) effects attributable to changes in rate (changes in rate multiplied by priorvolume). Changes attributable to the combined impact of changes in rate and volume have beenallocated proportionately to the changes due to volume changes and changes due to rate changes.

2009 vs. 2008Increase/(Decrease) Due to Changes in

Volume Rate Total

(in billions of Won)Interest earning assetsDue from banks ............................................................. W—61 W—(91) W—(30)Loans

Corporate.................................................................... 447 (1,212) (765)Consumer ................................................................... 73 (1,096) (1,023)Credit card ................................................................. 36 34 70

SecuritiesTrading securities ....................................................... (28) (92) (120)Investment securities .................................................. 230 (207) 23Other .......................................................................... (34) (43) (77)

Total interest income ............................................... 785 (2,707) (1,922)

Interest bearing liabilitiesDeposits

Demand ...................................................................... 1 1 2Time and savings ........................................................ 730 (1,155) (425)Installment.................................................................. (2) (1) (3)Certificates of deposit................................................. (341) (123) (464)Other .......................................................................... 7 (317) (310)

Borrowings .................................................................... 65 (392) (327)Other ............................................................................. 1 (177) (176)

Total interest expense ................................................. 461 (2,164) (1,703)

Net interest income..................................................... W—324 W—(543) W—(219)

S-11

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITIONAND RESULTS OF OPERATIONS


The following discussion and analysis is based on the Bank’s consolidated financial statements as ofand for the years ended 31st December, 2008 and 2009. This discussion should be read together withthe Bank’s consolidated financial statements and related notes included elsewhere in this OfferingCircular Supplement. Unless otherwise specified, the information provided below is stated on aconsolidated basis.

The Bank prepares its financial statements in accordance with Korean GAAP, which differs in somerespects from U.S. GAAP. You should read the section entitled “Management’s Discussion andAnalysis of Financial Condition and Results of Operations — Critical Accounting Policies, Estimatesand Judgments” in the Original Offering Circular as well as note 2 of the notes to the Bank’sconsolidated financial statements as of and for the years ended 31st December, 2008 and 2009, whichprovide summaries of certain critical accounting policies that require the Bank’s management to makedifficult, complex or subjective judgments relating to matters that are highly uncertain and that mayhave a material impact on the Bank’s financial condition and results of operations. See also “Summaryof Significant Differences between Korean GAAP and U.S. GAAP” in the Original Offering Circular.

Changes in Securities Values, Exchange Rates and Interest Rates

Fluctuations of exchange rates, interest rates and stock prices affect, among other things, the demandfor the Bank’s products and services, the value of and rate of return on the Bank’s assets, theavailability and cost of funding and the financial condition of the Bank’s customers. The followingtable shows, for the dates indicated, the stock price index of all equities listed on the KRX KOSPIMarket (formerly the Stock Market Division of the Korea Exchange) as published in the KOSPI, theWon to U.S. dollar exchange rates and benchmark Won borrowing interest rates.

June 30,2007

Dec. 31,2007

June 30,2008

Dec. 31,2008

June 30,2009

Dec. 30,2009

KOSPI ...................................... 1,743.60 1,897.13 1,674.92 1,124.47 1,390.07 1,682.77W—/US$ exchange rates(1)........... W—926.8 W—938.2 W—1,043.4 W—1,257.5 W—1,284.7 W—1,163.7Corporate bond rates(2) ............. 5.8% 6.9% 7.0% 8.1% 5.6% 5.7%Treasury bond rates(3) ............... 5.3% 5.7% 5.9% 3.4% 4.2% 4.4%

Notes:

(1) Represents the Market Average Exchange Rate in effect on such dates.

(2) Measured by the yield on three-year Korean corporate bonds rated as A+ by the Korean credit rating agencies.

(3) Measured by the yield on three-year treasury bonds issued by the MOSF.

In the second half of 2008 and into 2009, liquidity and credit concerns and volatility in the globalfinancial markets led to a significant depreciation of the Won relative to the U.S. dollar and significantdeclines and volatility in the KOSPI. See “Risk Factors — Risks Relating to the Bank — Other Risks— Difficult conditions in the global credit and financial markets could adversely effect the Bank’sresult of operations and financial condition” in the Original Offering Circular. As of 25th March, 2010,the KOSPI was 1,688.4 and the Market Average Exchange Rate was W—1,135.5 = U.S.$1.00.

S-12

Results of Operations

Net Interest Income

The following table sets out the principal components of the Bank’s consolidated interest income andexpense for the years ended 31st December, 2008 and 2009, as well as changes in these componentsover such periods in percentage terms.

Year Ended 31st December,Percentage

Change

2008 2009 2008/2009

(in billions of Won) (percent)Interest incomeInterest due from banks ................................................. W—189 W—148 (21.7)%Interest on trading securities .......................................... 425 315 (25.9)Interest on investment securities(1) ................................. 938 958 2.1Interest on loans ............................................................ 11,637 9,884 (15.1)Other ............................................................................. 195 120 (38.8)

Total interest income...................................................... 13,385 11,425 (14.6)

Interest expenseInterest on deposits ........................................................ 5,905 4,683 (20.7)Interest on borrowings(2) ............................................... 2,415 2,059 (14.7)Other ............................................................................. 298 126 (57.7)

Total interest expense .................................................... 8,618 6,868 (20.3)

Net interest income ........................................................ W—4,767 W—4,557 (4.4)%

Notes:

(1) Includes available-for-sale securities and held-to-maturity securities.

(2) Includes call money, bonds sold under the repurchase agreements and bills sold as well as borrowings in local and foreigncurrencies.

(a) Interest income

Interest income decreased 14.6% to W—11,425 billion in 2009 compared to W—13,385 billion in 2008,primarily due to a 15.1% decrease in interest on loans. On a non-consolidated basis, the averagebalance of the Bank’s interest earning assets increased 10.0% from W—192,099 billion in 2008 toW—211,352 billion in 2009, principally due to growth in the Bank’s loan portfolio. This increase wasmore than offset by a 152 basis point decrease in average yields on interest earning assets, on anon-consolidated basis, from 6.80% in 2008 to 5.28% in 2009, which was driven mainly by decreasesin average yields on loans.

The 15.1% decrease in interest on loans from W—11,637 billion in 2008 to W—9,884 billion in 2009 wasprimarily the result of:

• a 27.0% decrease in interest on consumer loans, on a non-consolidated basis, from W—3,782billion in 2008 to W—2,759 billion in 2009; and

• an 11.4% decrease in interest on corporate loans, on a non-consolidated basis, from W—6,708billion in 2008 to W—5,943 billion in 2009.

These decreases were partially offset by a 7.5% increase in interest on credit card balances, on anon-consolidated basis, from W—930 billion in 2008 to W—1,000 billion in 2009.

S-13

The decrease in interest on consumer loans was primarily the result of a 205 basis point decrease inaverage yields on consumer loans, on a non-consolidated basis, from 7.09% in 2008 to 5.04% in 2009,which was partially offset by a 2.7% increase in the average balance of consumer loans, on anon-consolidated basis, from W—53,336 billion in 2008 to W—54,789 billion in 2009. The decrease inaverage yields on consumer loans was primarily the result of the decrease in the general level ofinterest rates in Korea in 2009, which in turn reflected the low policy rate set by the Bank of Koreain the fourth quarter of 2008 and maintained throughout 2009 as part of the Government’s initiativeto address financial market instability and to help combat the slowdown in the domestic economy. Theincrease in the average balance of consumer loans mainly reflected the Bank’s continuing focus on theretail loan segment.

The decrease in interest on corporate loans was the result of a 120 basis point decrease in averageyields on corporate loans, on a non-consolidated basis, from 6.63% in 2008 to 5.43% in 2009, whichwas partially offset by a 8.1% increase in the average balance of corporate loans, on a non-consolidated basis, from W—101,192 billion in 2008 to W—109,427 billion in 2009. The decrease inaverage yields on corporate loans was mainly the result of the decrease in the general level of interestrates in Korea in 2009, which reflected the low policy rate maintained by the Bank of Korea duringsuch period. The increase in the average balance of corporate loans mainly reflected an increase in theBank’s lending to SMEs, primarily as a result of policies and initiatives introduced by the Governmentto encourage Korean banks to provide financial support to SMEs. See “Risk Factors — Risks relatingto the Bank — Corporate credit portfolio — The Bank’s increasing loan exposure to SMEs withfinancial difficulties may result in a deterioration of the Bank’s asset quality and adversely impact theBank” in the Original Offering Circular.

The increase in interest on credit card balances was the combined result of a 3.9% increase in theaverage balance of credit card balances, on a non-consolidated basis, from W—3,944 billion in 2008 toW—4,096 billion in 2009, and an 83 basis point increase in average yields on credit card balances, ona non-consolidated basis, from 23.58% in 2008 to 24.41% in 2009. The increase in the average balanceof credit card balances mainly reflected the Bank’s continuing marketing efforts to procure new creditcard subscribers and its introduction of new credit card products. The increase in average yields oncredit card balances was primarily due to a decrease in interest-free installment payment benefitsextended by the Bank to its cardholders, as well as an increase in the proportion of consumer creditcard purchases, which typically carry higher interest rates and merchant fees, relative to the Bank’soverall credit card balances.

Interest on investment securities increased 2.1% from W—938 billion in 2008 to W—958 billion in 2009.This increase resulted principally from a 32.1% increase in the average balance of investmentsecurities, on a non-consolidated basis, from W—17,270 billion in 2008 to W—22,813 billion in 2009,which was partially offset by a 119 basis point decrease in average yields on investment securities,on a non-consolidated basis, from 5.34% in 2008 to 4.15% in 2009. The increase in the averagebalance of investment securities was primarily due to an increase in fixed rate debt securities issuedby Government-related entities held by the Bank as held-to-maturity securities, including as a resultof the Bank’s increased purchases of short-term finance debentures issued by the Bank of Korea as ameans of conservatively managing its temporary excess Won liquidity. The decrease in average yieldson investment securities mainly reflected an increase in the proportion of such fixed rate debtsecurities issued by Government-related entities, which offer relatively lower interest rates, in theBank’s investment securities portfolio, as well as the lower interest rate environment in Korea.

The increase in interest on investment securities was more than offset by a 25.9% decrease in intereston trading securities from W—425 billion in 2008 to W—315 billion in 2009. This decrease resultedprimarily from a 146 basis point decrease in average yields on such securities, on a non-consolidatedbasis, from 5.52% in 2008 to 4.06% in 2009, which was enhanced by a 9.0% decrease in the averagebalance of trading securities, on a non-consolidated basis, from W—6,600 billion in 2008 to W—6,008

S-14

billion in 2009. The decrease in average yields on trading securities mainly reflected the lower interestrate environment in Korea, while the average balance of trading securities decreased primarily as aresult of the Bank’s decreased purchases of debt securities issued by Government-related entities andfinancial institutions for trading purposes.

(b) Interest Expense

Interest expense decreased 20.3% from W—8,618 billion in 2008 to W—6,868 billion in 2009, primarilydue to a 20.7% decrease in interest expense on deposits, together with a 14.7% decrease in interestexpense on borrowings (including debentures). The average balance of interest bearing liabilities, ona non-consolidated basis, increased 10.4% from W—183,940 billion in 2008 to W—203,047 billion in2009, principally due to increases in the average balance of deposits. This increase was more thanoffset by a decrease of 127 basis points in the average cost of interest bearing liabilities, on anon-consolidated basis, from 4.60% in 2008 to 3.33% in 2009, which was driven mainly by a decreasein the average cost of deposits.

The 20.7% decrease in interest expense on deposits from W—5,905 billion in 2008 to W—4,683 billionin 2009 was primarily due to:

• a 42.8% decrease in interest expense on certificates of deposit, on a non-consolidated basis,from W—1,085 billion in 2008 to W—621 billion in 2009;

• a 10.3% decrease in interest expense on time and savings deposits, on a non-consolidatedbasis, from W—4,121 billion in 2008 to W—3,696 billion in 2009; and

• a 57.4% decrease in interest expense on other deposits, on a non-consolidated basis, fromW—540 billion in 2008 to W—230 billion in 2009.

The decrease in interest expense on certificates of deposit resulted from a 33.8% decrease in theaverage balance of such deposits, on a non-consolidated basis, from W—17,916 billion in 2008 toW—11,869 billion in 2009, which was enhanced by an 83 basis point decrease in the average cost of suchdeposits, on a non-consolidated basis, from 6.06% in 2008 to 5.23% in 2009. The decrease in theaverage balance of certificates of deposit was primarily attributable to a reduced emphasis oncertificates of deposit, relative to other lower cost deposit products, in the Bank’s marketing effortsin 2009. The decrease in the average cost of certificates of deposit mainly reflected the decrease inthe general level of interest rates in Korea in 2009.

The decrease in interest expense on time and savings deposits resulted from a 124 basis point decreasein the average cost of such deposits, on a non-consolidated basis, from 4.43% in 2008 to 3.19% in2009, which was partially offset by a 24.6% increase in the average balance of such deposits, on anon-consolidated basis, from W—93,025 billion in 2008 to W—115,908 billion in 2009. The decrease inthe average cost of time and savings deposits mainly reflected the decrease in the general level ofinterest rates in Korea in 2009. The increase in the average balances of time and savings deposits wasprimarily attributable to increased demand for such deposits as an alternative to higher-riskinvestments in light of continuing adverse economic conditions during 2009.

The decrease in interest expense on other deposits resulted from a 238 basis point decrease in theaverage cost of other deposits, on a non-consolidated basis, from 4.05% in 2008 to 1.67% in 2009,which was partially offset by a 3.2% increase in the average balance of such deposits, on anon-consolidated basis, from W—13,333 billion in 2008 to W—13,762 billion in 2009. The decrease in theaverage cost of other deposits mainly reflected the lower interest rate environment in Korea, while theincrease in the average balance of such deposits was primarily attributable to increased demand forsuch deposits as an alternative to higher-risk investments in light of continuing adverse economicconditions during 2009.

S-15

The 14.7% decrease in interest expense on borrowings (including debentures) from W—2,415 billion in2008 to W—2,059 billion in 2009 resulted mainly from a 79 basis point decrease in the average cost ofborrowings, on a non-consolidated basis, from 4.81% in 2008 to 4.02% in 2009, which was partiallyoffset by a 3.2% increase in the average balance of borrowings, on a non-consolidated basis, fromW—49,484 billion in 2008 to W—51,091 billion in 2009. The decrease in the average cost of borrowingsprimarily reflected the lower interest rate environment in Korea, while the increase in the averagebalance of borrowings was principally due to the Bank’s increased utilization of call money in foreigncurrencies during 2009, which reflected the Bank’s focus on more conservatively managing its foreigncurrency liquidity following the global financial crisis

(c) Net interest margin

Net interest margin represents the ratio of net interest income to average interest earning assets. From2008 to 2009, the Bank’s overall net interest margin, on a non-consolidated basis, decreased from2.40% to 2.08%, as the effect of a 4.8% decrease in the Bank’s net interest income, on anon-consolidated basis, from W—4,615 billion to W—4,396 billion was enhanced by a 10.0% increase inthe average balance of its interest earning assets, on a non-consolidated basis, from W—192,099 billionto W—211,352 billion. The growth in average interest earning assets was largely matched by a 10.4%increase in average interest bearing liabilities, on a non-consolidated basis, from W—183,940 billion in2008 to W—203,047 billion in 2009. The magnitude of this decrease was enhanced by a decrease in theBank’s net interest spread, which represents the difference between the average yield on the Bank’sinterest earning assets and the average cost of its interest bearing liabilities, from 2.21% in 2008 to1.95% in 2009, on a non-consolidated basis. The decrease in net interest spread resulted from a largerdecrease in the average yield on interest earning assets, on a non-consolidated basis, between the twoperiods compared to the decrease in the average cost of interest bearing liabilities, on anon-consolidated basis, primarily due to the earlier adjustment of interest rates on interest earningassets compared to interest rates on interest bearing liabilities in the context of the lower interest rateenvironment, as well as continuing rate-based competition in the Korean banking industry for themarketing of both loan and deposit products.

Provision for Loan Losses

The Bank uses provisions for loan losses to bring its allowance for loan losses to a level that it deemsappropriate. For a discussion of the Bank’s loan loss provisioning policy, see “Assets and Liabilities— Asset Quality of Loans — Loan Loss Provisioning Policy” in the Original Offering Circular.

The Bank’s provision for loan losses increased from W—1,394 billion in 2008 to W—1,785 billion in2009. The increase was mainly attributable to increases in delinquencies and non-performing loans inthe Bank’s loan portfolios, particularly with respect to SME and construction industry borrowers,which reflected continuing adverse economic conditions during 2009, as well as the overall growth ofthe Bank’s corporate loan portfolio in 2009.

The Bank’s loan charge-offs, net of recoveries, increased 307.8% from W—295 billion in 2008 toW—1,203 billion in 2009, primarily due to an increase in net charge-offs in respect of the Bank’s SMEloans.

S-16

Non-Interest Income

The following tables set forth the components of the Bank’s consolidated non-interest income for theyears ended 31st December, 2008 and 2009, as well as changes in these components over such periodsin percentage terms.


Change

2008 2009 2008/2009

(in billions of Won) (percent)Gain on valuation and disposal of securities .................. W—294 W—841 186.1%Gain on disposal of loans............................................... 14 74 428.6Gain on foreign exchange .............................................. 21,515 15,486 (28.0)Commission income ....................................................... 1,051 924 (12.1)Trust management fees................................................... 39 30 (23.1)Dividend on securities ................................................... 160 60 (62.5)Other operating revenue ................................................. 38,818 15,428 (60.3)Non-operating income .................................................... 133 231 73.7

Total non-interest income ............................................... W—62,024 W—33,074 (46.7)%

Non-interest income decreased 46.7% from W—62,024 billion in 2008 to W—33,074 billion in 2009. Thisdecrease was primarily attributable to:

• a W—23,390 billion decrease in other operating revenue from W—38,818 billion in 2008 toW—15,428 billion in 2009; and

• a W—6,029 billion decrease in gain on foreign exchange from W—21,515 billion in 2008 toW—15,486 billion in 2009.

Other operating revenue includes principally gain on transaction of derivatives, gain on valuation ofderivatives and gain on fair value of hedged items. The 60.3% decrease in other operating revenue wasattributable mainly to a 55.8% decrease in gain on transaction of derivatives from W—27,694 billion in2008 to W—12,255 billion in 2009, as well as a 72.6% decrease in gain on valuation of derivatives fromW—10,927 billion in 2008 to W—2,991 billion in 2009. These decreases, which mainly reflected thedecrease in volatility and derivatives trading volume in 2009 compared to 2008, were more than offsetby corresponding decreases in loss on transaction of derivatives and loss on valuation of derivatives,which are recorded as other operating expenses. On a net basis, the Bank’s net loss on transaction andvaluation of derivatives decreased from W—1,464 billion in 2008 to W—809 billion in 2009, primarily asa result of lower net transaction losses on currency forwards. However, such decrease was more thanoffset by a decrease in net gain on foreign exchange, as described below.

The 28.0% decrease in gain on foreign exchange, which was principally due to reduced exchange ratevolatility and trading volume in 2009 compared to 2008, was largely offset by a correspondingdecrease in loss on foreign exchange, which is recorded as an operating expense. On a net basis, theBank’s net gain on foreign exchange decreased from W—1,600 billion in 2008 to W—865 billion in 2009,but this decrease was largely offset by a decrease in net loss on transaction and valuation ofderivatives.

S-17

Non-Interest Expense

The following tables show the components of the Bank’s consolidated non-interest expense for theyears ended 31st December, 2008 and 2009, as well as changes in these components over such periodsin percentage terms, other than loan loss provisions.


Change

2008 2009 2008/2009

(in billions of Won) (percent)Loss on valuation and disposal of securities................... W—969 W—351 (63.8)%Loss on disposal of loans ............................................... 68 284 317.7Loss on foreign exchange .............................................. 19,915 14,622 (26.6)Commission expenses..................................................... 432 394 (8.8)Salaries and benefits ...................................................... 978 987 0.9Other general and administrative expenses ..................... 1,280 1,180 (7.8)Other operating expenses ............................................... 41,072 16,726 (59.3)Non-operating expenses ................................................. 74 96 29.7

Total non-interest expense (excluding loan lossprovisions).................................................................. W—64,788 W—34,640 (46.5)%

Non-interest expense (excluding loan loss provisions) decreased 46.5% from W—64,788 billion in 2008to W—34,640 billion in 2009. This decrease was primarily attributable to:

• a W—24,346 billion decrease in other operating expenses from W—41,072 billion in 2008 toW—16,726 billion in 2009; and

• a W—5,293 billion decrease in loss on foreign exchange from W—19,915 billion in 2008 toW—14,622 billion in 2009.

Other operating expenses include principally loss on transaction of derivatives, loss on valuation ofderivatives, funds contribution fee, loss on fair value hedged items and various provisions. The 59.3%decrease in other operating expenses was attributable primarily to a 54.6% decrease in loss ontransaction of derivatives from W—29,277 billion in 2008 to W—13,306 billion in 2009, as well as a74.6% decrease in loss on valuation of derivatives from W—10,808 billion in 2008 to W—2,749 billionin 2009. These decreases, which resulted mainly from the decrease in volatility and derivatives tradingvolume in 2009 compared to 2008, were substantially offset by corresponding decreases in gain ontransaction of derivatives and gain on valuation of derivatives, which are recorded as other operatingrevenue. See “— Non-Interest Income.”

The 26.6% decrease in loss on foreign exchange, which mainly reflected reduced exchange ratevolatility and trading volume in 2009 compared to 2008, was more than offset by a correspondingdecrease in gain on foreign exchange, which is recorded as operating revenue. See “— Non-InterestIncome.”

Income Tax Expense

The Bank’s income tax expense is calculated by adding or subtracting changes in deferred income taxliabilities and assets to tax amounts actually paid or accrued for the relevant period. The Bankrecognizes deferred income tax assets only if it reasonably expects to realize the future tax benefitsfrom accumulated temporary differences and tax loss carry-forwards. The Bank accounts for thedifference between the tax amount paid or accrued for the period and income tax expense as deferredincome tax assets or liabilities, which may be offset against income tax assets or liabilities in futureperiods.

S-18

Income tax expense decreased by W—120 billion, from W—372 billion in 2008 to W—252 billion in 2009.The decrease in income tax expense resulted primarily from a decrease in current income tax expense,reflecting a decrease in the statutory tax rate applicable to the Bank and the effect of a refund of prioryears’ income taxes, which more than offset the effect of an increase in the Bank’s income beforeincome tax. The statutory tax rate was 27.5% in 2008 and 24.2% in 2009. The Bank’s effective tax ratewas 61.4% in 2008 and 20.9% in 2009.

Net Income

Due to the factors described above, the Bank’s net income was W—955 billion in 2009 compared toW—234 billion in 2008.

Financial Condition

Assets

The following table sets forth the principal components of the Bank’s assets on a consolidated basisas of 31st December, 2008 and 2009, as well as changes in these components between the two datesin percentage terms.

As of 31st December,PercentChange

2008 2009 2008/ 2009

(in billions of Won) (percent)Cash and due from banks ............................................... W—14,991 W—16,423 9.6%Trading securities........................................................... 6,852 8,469 23.6Investment securities(1) .................................................. 20,462 22,810 11.5Loans:

Loans in local currency .............................................. 133,342 135,855 1.9Loans in foreign currencies ........................................ 15,803 12,446 (21.2)Bills bought in local currency..................................... 1,893 865 (54.3)Bills bought in foreign currencies ............................... 4,979 4,388 (11.9)Advances for customers .............................................. 114 53 (53.5)Factoring receivables .................................................. 57 47 (17.5)Credit card accounts ................................................... 3,878 3,690 (4.8)Bonds purchased with resale agreements ..................... 2,041 1,496 (26.7)Call loans ................................................................... 1,310 4,448 239.5Privately placed bonds ................................................ 3,789 2,996 (20.9)Domestic banker’s usance ........................................... 4,271 3,738 (12.5)Other .......................................................................... 261 176 (32.6)

171,738 170,198 (0.9)Less:

Allowance for loan losses ........................................... 3,111 3,404 9.4Deferred loan origination fees .................................... 42 11 (73.8)

Total loans, net .............................................................. 168,585 166,805 (1.1)Tangible assets ............................................................... 1,913 1,908 (0.3)Other assets ................................................................... 19,688 10,374 (47.3)

Total assets ................................................................. W—232,491 W—226,789 (2.5)%

Notes:

(1) Includes available-for-sale securities, held-to-maturity securities and equity securities accounted for using the equitymethod of accounting.

S-19

The Bank’s assets decreased 2.5% from W—232,491 billion as of 31st December, 2008 to W—226,789billion as of 31st December, 2009, principally due to a 47.3% decrease in other assets from W—19,688billion as of 31st December, 2008 to W—10,374 billion as of 31st December, 2009, which reflected adecrease in derivative assets, and a 21.2% decrease in loans in foreign currencies from W—15,803billion as of 31st December, 2008 to W—12,446 billion as of 31st December, 2009 and a 54.3% decreasein bills bought in local currency from W—1,893 billion as of 31st December, 2008 to W—865 billion asof 31st December, 2009. These decreases were partially offset by a 239.5% increase in call loans fromW—1,310 billion as of 31st December, 2008 to W—4,448 billion as of 31st December, 2009, a 1.9%increase in loans in local currency from W—133,342 billion as of 31st December, 2008 to W—135,855billion as of 31st December, 2009, an 11.5% increase in investment securities from W—20,462 billionas of 31st December, 2008 to W—22,810 billion as of 31st December, 2009, a 23.6% increase in tradingsecurities from W—6,582 billion as of 31st December, 2008 to W—8,469 billion as of 31st December,2009 and a 9.6% increase in cash and due from banks from W—14,991 billion as of 31st December, 2008to W—16,423 billion as of 31st December, 2009.

Liabilities and Shareholders’ Equity

The following table sets forth the principal components of the Bank’s liabilities as well as the Bank’sshareholders’ equity on a consolidated basis as of 31st December, 2008 and 2009, as well as changesin these components between the two dates in percentage terms.

As of 31st December,PercentChange

2008 2009 2008/2009

(in billions of Won) (percent)Deposits ......................................................................... W—143,509 W—151,831 5.8%Borrowings .................................................................... 51,797 47,526 (8.3)Other liabilities .............................................................. 25,259 13,797 (45.4)

Total liabilities............................................................... 220,565 213,154 (3.4)

Capital stock:Common stock ............................................................ 3,180 3,480 9.4Preferred stock ........................................................... 350 350 —

Capital surplus ............................................................... 814 812 (0.3)Accumulated other comprehensive income ..................... 675 1,136 68.3Retained earnings........................................................... 6,902 7,851 13.8Minority interests........................................................... 5 6 20.0

Total shareholders’ equity .............................................. 11,926 13,635 14.3

Total liabilities, minority interest and shareholders’equity ......................................................................... W—232,491 W—226,789 (2.5)%

The Bank’s total liabilities decreased 3.4% from W—220,565 billion as of 31st December, 2008 toW—213,154 billion as of 31st December, 2009, mainly as the result of a 45.4% decrease in otherliabilities from W—25,259 billion as of 31st December, 2008 to W—13,797 billion as of 31st December,2009, which reflected a decrease in derivative liabilities, and an 8.3% decrease in the Bank’sborrowings from W—51,797 billion as of 31st December, 2008 to W—47,526 billion as of 31st December,2009, which principally reflected a decrease in debentures in local currency. These decreases werepartially offset by a 5.8% increase in the Bank’s deposits from W—143,509 billion as of 31st December,2008 to W—151,831 billion as of 31st December, 2009, primarily due to increases in savings depositsin local currency.

The Bank’s shareholders’ equity increased 14.3% from W—11,926 billion as of 31st December , 2008to W—13,635 billion as of 31st December, 2009. This increase resulted principally from an increase inretained earnings, which was attributable to net income generated in 2009.

S-20

Liquidity

The Bank’s primary source of funding has historically been and continues to be customer deposits,particularly lower-cost retail deposits. Deposits amounted to W—143,509 billion as of 31st December,2008 and W—151,831 billion as of 31st December, 2009, which represented approximately 73.5% and76.2% of the Bank’s total funding, respectively. The Bank has been able to use increases in customerdeposits in recent years to finance its operations generally, including meeting a portion of the Bank’sliquidity requirements. Although the majority of deposits are short-term, it has been the Bank’sexperience that the majority of its depositors generally roll over their deposits at maturity, thusproviding the Bank with a stable source of funding.

The Bank also obtains funding through borrowings, including the issuance of debentures, to meet theBank’s liquidity needs. Debentures in local and foreign currencies represented 16.2% and 13.8% of theBank’s total funding as of 31st December, 2008 and 2009, respectively. Borrowings (not includingdebentures) represented 10.3% and 10.1% of the Bank’s total funding as of 31st December, 2008 and2009, respectively. For further information on the Bank’s sources of funding, see “Assets andLiabilities — Funding” in the Original Offering Circular.

The Bank’s liquidity risks arise from withdrawals of deposits and maturities of its borrowings, as wellas the Bank’s need to fund its lending, trading and investment activities and to manage its tradingpositions. The Bank’s goal in managing its liquidity is to be able, even under adverse conditions, tomeet all of its liability repayments on time and to fund all investment opportunities. For a discussionof how the Bank manages its liquidity risk, see “Risk Management — Liquidity Risk Management”in the Original Offering Circular.

The FSC requires each Korean bank to maintain specific Won and foreign currency liquidity ratios.These ratios require the Bank to keep its ratio of liquid assets to liquid liabilities above certainminimum levels. For a description of these requirements, see “Supervision and Regulation —Liquidity” in the Original Offering Circular. Furthermore, pursuant to the Regulation on Supervisionof Banking Business issued by the FSC as amended by Notice No. 2009-65 dated 31st December, 2009(the “Guidelines”), beginning on 1st July 2010, foreign exchange agencies, including the Bank, willbe required to hold “foreign currency safe assets” in an aggregate amount that is not less than thelower of (i) the product of (x) its total foreign currency-denominated debt maturing in one year or lessmultiplied by 2/12 and (y) an amount equal to one minus the “lowest rollover ratio” and (ii) 2% ofits total foreign currency-denominated assets as shown in the balance sheet for the immediatelypreceding quarter. The “lowest rollover ratio” of a foreign exchange agency means the ratio of (A) itstotal debt with a maturity of one year or less (excluding overnight money) incurred in a particularmonth to (B) its total debt with maturity of one year or less (excluding overnight money) payable inthat particular month, and is calculated by taking the lowest three month average from a period to bedesignated by the governor of the FSS. Under the Guidelines, foreign currency debt includes financialbonds, borrowings, call monies and repurchase selling denominated in foreign currencies and suchother similar debt instruments denominated in a foreign currency as designated by the governor of theFSS. “Foreign currency safe assets” are defined as deposits denominated in foreign currency with acentral bank or financial institutions rated A or above, bonds issued or guaranteed by a governmentor central bank rated A or above or corporate bonds issued or guaranteed by corporations rated A orabove. Accordingly, the Bank may be required to acquire further foreign currency safe assets.Effective from 1st January, 2010, the Guidelines also increased the minimum “mid- to long-termforeign exchange funding ratio” applicable to foreign exchange agencies, including the Bank, from80% to 90%. “Mid-to long term foreign exchange funding ratio” refers to the ratio of (1) the totaloutstanding amount of its foreign exchange borrowing with a maturity of more than one year to (2)the total outstanding amount of its foreign exchange lending with a maturity of one year or more.

S-21

The Bank paid dividends to Woori Finance Holdings, its holding company, of W—200 billion in 2008in respect of 2007 and W—2 billion in 2009 in respect of 2008. In 2010 to date, the Bank has paiddividends of W—230 billion for its common stock and W—56 billion for its convertible preferred stockto Woori Finance Holdings in respect of 2009.

Credit-related Commitments and Other Off-Balance Sheet Arrangements

The Bank has various credit-related commitments that are not reflected on its balance sheet, whichprimarily consist of guarantees and acceptances, commitments and bills endorsed with recourse.Guarantees and acceptances include guarantees for loans, debentures, trade financing arrangementsand guarantees for other financings. Commitments include commercial letters of credit and unusedlines of credit.

The following table sets forth the Bank’s credit-related commitments as of the dates indicated.

As of 31st December,

2008 2009

(consolidated)

(in billions of Won)Confirmed acceptances and guarantees ................................................. W—11,639 W—10,146

Local currency.................................................................................. 1,202 959Bond issuance ............................................................................... 4 46Guarantees for loans...................................................................... 74 84Guarantees for bills ....................................................................... — —Other............................................................................................. 1,124 829

Foreign currencies ............................................................................ 10,437 9,187Acquisition.................................................................................... 746 765Letters of guarantee ...................................................................... 99 114Credit derivatives sold .................................................................. 170 134Other............................................................................................. 9,422 8,174

Unconfirmed acceptances and guarantees ............................................. 14,393 10,870Customer’s liability on letters of credit ............................................ 14,393 10,870

Local letters of credit in foreign currencies ................................... 570 617Local letters of credit in local currency......................................... 73 112Import letters of credit .................................................................. 5,845 5,432Other............................................................................................. 7,905 4,709

Commitments ....................................................................................... 80,508 79,703Commitments on loans in Won (including unused portions) .............. 58,830 59,991Commitments on loans in foreign currencies (including unused

portions) ....................................................................................... 21,243 18,724Commitments on securities in local currency .................................... 435 988

Bills endorsed with recourse ................................................................ 7 10

The Bank analyzes its off-balance sheet legally binding credit-related commitments for possible lossesassociated with such commitments, and establishes allowances for possible losses in a manner similarto allowances that the Bank would establish with respect to a loan granted under the terms of theapplicable commitment. These allowances include allowances for possible losses on acceptances andguarantees and allowance for unused credit lines and are reflected as “other liabilities” in the Bank’sbalance sheet. As of 31st December, 2009, the Bank had established allowances for possible losses ofW—567 billion with respect to its credit-related commitments. See “Management’s Discussion andAnalysis of Financial Condition and Results of Operations — Overview — New Loan LossProvisioning Guidelines” in the Original Offering Circular.

S-22

Capital Adequacy

The following table sets forth a summary of the Bank’s capital and capital adequacy ratios as of 31stDecember, 2008 and 2009, based on applicable Korean GAAP and regulatory reporting standards.

As of 31st December,

2008 2009

(in billions of Won)Tier I capitalPaid-in capital...................................................................................... W—3,529 W—3,830Hybrid ................................................................................................. 1,513 2,423Capital surplus ..................................................................................... 814 812Retained earnings................................................................................. 6,936 7,887Minority interests in consolidated subsidiaries ..................................... 5 6Consolidated adjustment credit/debit .................................................... — —Others .................................................................................................. (1,119) (747)

Total Tier I capital ........................................................................... 11,678 14,211

Tier II capitalRevaluation reserves ............................................................................ — —Allowance for loan losses(1) ................................................................. 1,128 1,150Subordinated debt(2) ............................................................................. 4,634 4,032Valuation gain on investment securities ................................................ 415 451

Total Tier II capital .......................................................................... 6,177 5,633

Investment in non-consolidated equity method investees(3) ................... (114) (181)

Total core and supplementary capital ................................................... W—17,741 W—19,633

Risk-weighted assetsCredit risk-weighted assets................................................................... W—140,183 W—126,339Market risk-weighted assets ................................................................. 3,446 2,535Operational risk-weighted assets .......................................................... 8,314 7,788

Total ................................................................................................. W—151,944 W—136,662

Tier I capital ratio ............................................................................... 7.69% 10.40%Tier II capital ratio .............................................................................. 4.07% 3.99%Capital adequacy ratio ......................................................................... 11.68% 14.39%

Notes:

(1) Allowances for loan losses in respect of credits classified as normal or precautionary are used to calculate Tier II capitalonly to the extent such allowances represent up to 1.25% of risk-weighted assets.

(2) Subordinated debt representing up to 50% of Tier I capital is used in the calculation of Tier II capital.

(3) Investments in equity method investees engaged in banking and financial activities of which the Bank owns more than15% are deducted from total capital and not deducted directly from Tier I and Tier II pursuant to the guidelines of theFSC.

Beginning on January 1, 2008, the FSC implemented Basel II in Korea. Basel II, which builds uponthe initial Basel Capital Accord of 1988, focuses its attention on risk assessment and credit risk inparticular. Basel II institutes new measures that require the Bank to:

• take into account individual borrower credit when calculating the Bank’s risk-weightedassets, unlike in the past; and

• quantify its operational risk to include explicit capital requirements in the Bank’s financialstatements.

S-23

In addition, under Basel II, banks are permitted to follow either a standardized approach or an internalratings-based approach with respect to calculating credit risk capital requirements. The Bank hasvoluntarily chosen to establish and follow an internal ratings-based approach, which is morerisk-sensitive in assessing credit risk capital requirements. In October 2008, the FSS approved theBank’s internal ratings-based approach for credit risk. For regulatory reporting purposes, fromSeptember 30, 2008, the Bank has implemented its internal ratings-based approach for credit risk,beginning with its credit risk with respect to retail, SME and large corporate loans and asset-backedsecurities portfolios, and plans to further implement its internal ratings-based approach to itsspecialized lending portfolio upon approval by the FSS. A standardized approach will be used inmeasuring credit risk for those classes of exposure for which the Bank’s internal ratings-basedapproach has not yet been implemented, as well as for certain classes of exposure (including those tothe Government, public institutions and other banks) for which the internal ratings-based approachwill not be applied. The Bank plans to implement an “advanced internal ratings-based approach” forcredit risk in the near future. The Bank also implemented a standardized approach for operational riskbeginning on January 1, 2008, and implemented an “advanced measurement approach” for operationalrisk from June 2009. For internal measurement purposes, the Bank began to implement an advancedinternal ratings-based approach for credit risk commencing in 2005 and an advanced measurementapproach for operational risk commencing in 2008.

In December 2009, the Basel Committee on Banking Supervision (the “BCBS”) introduced a new setof measures to supplement Basel II which include, among others, a requirement for higher minimumcapital, introduction of a leverage ratio as a supplementary measure to the capital adequacy ratio andflexible capital requirements for different phases of the economic cycle (the “New Requirements”).After further impact assessment, BCBS is expected to implement the New Requirements in 2011. Thetiming and scope of implementation of the New Requirements in Korea remain uncertain. Theimplementation of the New Requirements in Korea may have a significant effect on the capitalrequirements of Korean banks, including the Bank.

S-24

INDEX TO FINANCIAL STATEMENTS

Audited Consolidated Financial Statements for the years ended 31st December, 2009 and 2008

Independent Auditors’ Report ............................................................................................... F-2

Consolidated Statements of Financial Position as of 31st December, 2009 and 2008 ........... F-3

Consolidated Statements of Income for the years ended 31st December, 2009 and 2008 ..... F-4

Consolidated Statements of Changes in Shareholders’ Equity for the years ended31st December, 2009 and 2008 ......................................................................................... F-7

Consolidated Statements of Cash Flows for the years ended 31st December, 2009and 2008 .......................................................................................................................... F-8

Notes to the Consolidated Financial Statements .................................................................. F-10

F-1

INDEPENDENT AUDITORS’ REPORTEnglish Translation of a Report Originally Issued in Korean

To the Shareholder and Board of Directors ofWoori Bank

We have audited the accompanying consolidated statements of financial position of Woori Bank (the“Bank”) and its subsidiaries as of December 31, 2009 and 2008, and the related consolidatedstatements of income, changes in shareholder’s equity and cash flows for the years then ended, allexpressed in Korean Won. These financial statements are the responsibility of the Bank’s management.Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with auditing standards generally accepted in the Republic ofKorea. Those standards require that we plan and perform the audit to obtain reasonable assuranceabout whether the financial statements are free of material misstatement. An audit includes examining,on a test basis, evidence supporting the amounts and disclosures in the financial statements. An auditalso includes assessing the accounting principles used and significant estimates made by management,as well as evaluating the overall financial statement presentation. We believe that our audits providea reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, thefinancial position of the Bank as of December 31, 2009 and 2008, and the results of its operations,the changes in its shareholder’s equity and their cash flows for the years then ended, in conformitywith accounting principles generally accepted in the Republic of Korea.

Accounting principles and auditing standards and their application in practice vary among countries.The accompanying financial statements are not intended to present the financial position, results ofoperations, changes in shareholder’s equity and cash flows in accordance with accounting principlesand practices generally accepted in countries other than the Republic of Korea. In addition, theprocedures and practices utilized in the Republic of Korea to audit such financial statements maydiffer from those generally accepted and applied in other countries. Accordingly, this report and theaccompanying financial statements are for use by those knowledgeable about Korean accountingprocedures and auditing standards and their application in practice.

/s/ Deloitte Anjin LLC

March 4, 2010

Notice to Readers

This report is effective as of March 4, 2010, the auditors’ report date. Certain subsequent events orcircumstances may have occurred between the auditors’ report date and the time the auditors’ reportis read. Such events or circumstances could significantly affect the accompanying financial statementsand may result in modifications to the auditors’ report.

F-2

WOORI BANKCONSOLIDATED STATEMENTS OF FINANCIAL POSITION

AS OF DECEMBER 31, 2009 AND 2008

Korean Won

2009 2008

(In millions)ASSETS

Cash and due from banks (Notes 3, 11, 23, 24 and 29) ................ W— 16,423,076 W— 14,991,465Trading securities (Notes 4 and 23) ............................................. 8,468,752 6,851,733Available-for-sale securities (Notes 4, 11, 20 and 23) .................. 9,758,128 13,880,715Held-to-maturity securities (Notes 4, 11 and 23) .......................... 12,524,770 6,165,819Equity securities accounted for using the equity method of

accounting (Notes 4 and 23) ..................................................... 526,938 415,012Loans, net of allowance for possible loan losses (Notes 5, 6, 7,

23, 24 and 25) .......................................................................... 166,804,600 168,585,551Tangible assets (Notes 8 and 10).................................................. 1,908,430 1,913,011Other assets (Notes 9 and 24) ...................................................... 10,373,907 19,687,739

W— 226,788,601 W— 232,491,045

LIABILITIES AND SHAREHOLDER’S EQUITY

LIABILITIES:Deposits (Notes 12, 23 and 24) ................................................ W— 151,830,533 W— 143,508,571Borrowings (Notes 13, 23 and 24) ............................................ 47,525,963 51,797,107Other liabilities (Notes 15, 24 and 25)...................................... 13,797,139 25,258,881

213,153,635 220,564,559

SHAREHOLDER’S EQUITY (Note 16):Capital stock ............................................................................ 3,829,783 3,529,783Capital surplus ......................................................................... 812,283 813,548Accumulated other comprehensive income ................................ 1,135,843 675,517Retained earnings .................................................................... 7,850,817 6,902,430Minority interests ..................................................................... 6,240 5,208

13,634,966 11,926,486

W— 226,788,601 W— 232,491,045

See accompanying notes to consolidated financial statements.

F-3

WOORI BANKCONSOLIDATED STATEMENTS OF INCOME

FOR THE YEARS ENDED DECEMBER 31, 2009 AND 2008

Korean Won

2009 2008

(In millions, except for incomeper share data)

OPERATING REVENUEInterest income (Note 24):

Interest on due from banks ............................................................ W— 147,660 W— 188,943Interest on trading securities ......................................................... 314,940 425,357Interest on available-for-sale securities .......................................... 463,040 634,920Interest on held-to-maturity securities ........................................... 495,689 302,582Interest on loans............................................................................ 9,884,008 11,637,351Other............................................................................................. 119,882 196,096

11,425,219 13,385,249

Gain on valuation and disposal of securities:Gain on valuation of trading securities .......................................... 32,354 132,884Gain on disposal of trading securities............................................ 118,051 70,622Gain on disposal of available-for-sale securities ............................ 689,742 88,180Gain on redemption of available-for-sale securities ....................... 239 1,715Reversal of impairment loss on available-for-sale securities (Note

20) ............................................................................................. 282 457

840,668 293,858

Gain on disposal of loans (Note 6) ................................................... 73,826 14,382Gain on foreign exchange ................................................................. 15,486,091 21,514,748Commission income (Note 24):

Commissions ................................................................................. 838,105 990,206Guarantee fees .............................................................................. 73,251 46,903Fees on early withdrawal............................................................... 15 49Commissions received on credit cards ........................................... 12,356 13,974

923,727 1,051,132

Trust management fees .................................................................. 30,131 38,633Dividend on securities:

Dividends on trading securities ..................................................... 4,084 4,158Dividends on available-for-sale securities ...................................... 55,526 155,589

59,610 159,747

Other operating revenue (Note 24):Gain on transaction of derivatives ................................................. 12,255,038 27,693,771Gain on valuation of derivatives (Note 26) .................................... 2,990,649 10,927,271Gain on fair value hedged items (Note 26) .................................... 180,157 97,447Other............................................................................................. 1,897 99,154

15,427,741 38,817,643

44,267,013 75,275,392

OPERATING EXPENSESInterest expense (Note 24):

Interest on deposits ....................................................................... W— 4,683,126 W— 5,904,947Interest on borrowings................................................................... 2,059,060 2,415,121Other............................................................................................. 125,799 298,335

6,867,985 8,618,403

F-4

Korean Won

2009 2008


Loss on valuation and disposal of securities:Loss on valuation of trading securities .......................................... 61,729 45,489Loss on disposal of trading securities ............................................ 68,057 155,444Loss on disposal of available-for-sale securities ............................ 115,966 25,354Loss on redemption of available-for-sale securities........................ — 10Loss on impairment of available-for-sale securities

(Note 20) ................................................................................... 104,949 743,014

350,701 969,311

Loss on valuation and disposal of loans:Provision for possible loan losses (Note 5).................................... 1,785,057 1,394,180Loss on disposal of loans .............................................................. 283,711 67,816

2,068,768 1,461,996

Loss on foreign exchange .............................................................. 14,621,554 19,914,905

Commission expenses (Note 24):Commissions ................................................................................. 91,142 99,793Commissions paid on credit cards ................................................. 302,559 332,337

393,701 432,130

Loss on trust accounts ................................................................... 45 63

General administrative expenses (Notes 18 and 24):Salaries and benefits ..................................................................... 986,984 977,832Other general administrative expenses ........................................... 1,179,747 1,280,178

2,166,731 2,258,010

Other operating expenses (Note 24):Provision for acceptance and guarantee losses ............................... 30,650 25,099Provision for unused credit line..................................................... 32,202 45,352Provision for other allowances ...................................................... 48,813 100,157Loss on transaction of derivatives ................................................. 13,305,552 29,277,242Loss on valuation of derivatives (Note 26) .................................... 2,748,691 10,807,643Loss on fair value hedged items (Note 26) .................................... 93,825 401,363Funds contribution fee................................................................... 289,440 274,844Other............................................................................................. 176,806 140,463

16,725,979 41,072,163

43,195,464 74,726,981

OPERATING INCOME ........................................................................ W— 1,071,549 W— 548,411

NON-OPERATING INCOME (Notes 19 and 24) .................................. 230,899 133,394

NON-OPERATING EXPENSES (Notes 19 and 24)............................... 95,831 74,486

INCOME BEFORE INCOME TAX ..................................................... 1,206,617 607,319

INCOME TAX EXPENSE (Note 21) .................................................... 252,053 372,633

F-5

Korean Won

2009 2008


NET INCOMEControlling interest ........................................................................... 953,830 233,976Minority interests ............................................................................. 734 710

W— 954,564 W— 234,686

BASIC CONTROLLING INTEREST’S NET INCOME PERCOMMON SHARE (In Korean Won) (Note 22) ................................ W— 1,318 W—364

DILUTED CONTROLLING INTEREST’S NET INCOME PERCOMMON SHARE (In Korean Won) (Note 22) ................................ W— 1,270 W—364


F-6

WOORI BANKCONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDER’S EQUITY


Capitalstock

Capitalsurplus

Accumulatedother

comprehensiveincome (loss)

Retainedearnings

Minorityinterests Total

(In millions of Korean Won)Balance as of Jan. 1, 2008

(reported)............................... W— 3,179,783 W— 465,486 W— 1,716,303 W— 6,944,489 W— 3,914 W—12,309,975

Cumulative effect of changes inaccounting policy................... — (683) (1,412) (87,614) — (89,709)

Balance after adjustment due toaccounting policy change ....... 3,179,783 464,803 1,714,891 6,856,875 3,914 12,220,266

Dividends .................................. — — — (200,326) — (200,326)

Balance after appropriations ....... 3,179,783 464,803 1,714,891 6,656,549 3,914 12,019,940

Paid-in capital increase .............. 350,000 348,320 — — — 698,320

Net income ................................ — — — 233,976 710 234,686

Loss on valuation of available-for-sale securities................... — — (1,056,461) — — (1,056,461)

Gain on valuation of equitysecurities accounted for usingthe equity method .................. — — 17,087 — — 17,087

Foreign currency translationadjustment ............................. — 425 — 11,905 584 12,914

December 31, 2008 .................... W— 3,529,783 W— 813,548 W— 675,517 W— 6,902,430 W— 5,208 W—11,926,486

Balance as of Jan. 1, 2009(reported)............................... W—3,529,783 W—813,548 W—675,517 W—6,902,430 W—5,208 W—11,926,486

Dividends .................................. — — — (2,455) (112) (2,567)

Balance after appropriations ....... 3,529,783 813,548 675,517 6,899,975 5,096 11,923,919

Capital stock issuance ................ 300,000 (1,440) — — — 298,560

Net income ................................ — — — 953,830 734 954,564

Gain on valuation of available-for-sale securities................... — — 435,879 — — 435,879

Gain on valuation of equitysecurities accounted for usingthe equity method .................. — — 24,447 — — 24,447

Foreign currency translationadjustment ............................. — 175 — (2,988) 410 (2,403)

December 31, 2009 .................... W— 3,829,783 W— 812,283 W— 1,135,843 W— 7,850,817 W— 6,240 W—13,634,966


F-7

WOORI BANKCONSOLIDATED STATEMENTS OF CASH FLOWS


Korean Won

2009 2008

(In millions)CASH FLOWS FROM OPERATING ACTIVITIES:

Net income ...................................................................................... W— 953,830 W— 233,976

Addition of expenses not involving cash outflows:Loss on valuation of trading securities .......................................... 61,729 45,489Loss on disposal of trading securities ............................................ 68,057 155,444Loss on disposal of available-for-sale securities ............................ 115,966 25,354Loss on redemption of available-for-sale securities........................ — 10Loss on impairment of available-for-sale securities ....................... 104,949 743,014Provision for possible loan losses.................................................. 1,785,057 1,394,180Loss on disposal of loans .............................................................. 283,711 67,816Provision for severance benefits .................................................... 102,699 77,286Depreciation ................................................................................. 85,441 93,518Amortization ................................................................................. 58,254 71,906Provision for acceptance and guarantee losses ............................... 30,650 25,099Provision for unused credit line..................................................... 32,202 45,352Provision for other allowances ...................................................... 48,813 100,157Loss on transaction of derivatives ................................................ 13,305,552 29,277,242Loss on valuation of derivatives ................................................... 2,748,691 10,807,643Loss on fair value hedged items ................................................... 93,825 401,363Loss on valuation using the equity method .................................... 3 3,980Loss on disposal of tangible assets ................................................ 503 593Loss on impairment of tangible assets ........................................... — 4,759Minority interests, gain ................................................................. 734 710Other............................................................................................. 9,053 12,298

18,935,889 43,353,213

Deduction of revenues not involving cash inflows:Gain on valuation of trading securities .......................................... 32,354 132,884Gain on disposal of trading securities............................................ 118,051 70,622Gain on disposal of available-for-sale securities ............................ 689,742 88,180Gain on redemption of available-for-sale securities ....................... 239 1,715Reversal of impairment loss on available-for-sale securities .......... 282 457Gain on disposal of loans .............................................................. 73,826 14,382Gain on transactions of derivatives .............................................. 12,255,038 27,693,771Gain on valuation of derivatives.................................................... 2,990,649 10,927,271Gain on fair value hedged items .................................................... 180,157 97,447Gain on valuation using the equity method.................................... 31,740 58,846Gain on disposal of equity securities accounted for using the

equity method ............................................................................ 27 423Gain on disposal of tangible assets................................................ 139,792 7,389Other............................................................................................. 5,550 14,354

16,517,447 39,107,741

F-8

Korean Won

2009 2008

(In millions)Changes in assets and liabilities resulting from operations:

Net decrease (increase) in trading securities .................................. W—(1,596,400) W— 809,856Net decrease in available-for-sale securities .................................. 5,091,003 1,406,191Net increase in held-to-maturity securities..................................... (6,358,951) (908,405)Net increase in loans ..................................................................... (216,937) (27,782,769)Net decrease in accounts receivable-other...................................... 640,861 3,134,108Net decrease (increase) in accrued income .................................... 77,811 (111,025)Net increase in prepaid expenses ................................................... (55,925) (8,932)Severance benefit payments ........................................................... (178,235) (87,571)Increase in accrued severance benefits and other ........................... 51,285 10,173Net decrease in accounts payable-other ......................................... (894,548) (3,244,105)Net increase (decrease) in accrued expenses .................................. (676,399) 353,886Net increase (decrease) in unearned revenues ................................ (56,150) 36,591Other............................................................................................. 196,645 (346,567)

(3,975,940) (26,738,569)

(603,668) (22,259,121)

CASH FLOWS FROM INVESTING ACTIVITIES:Net decrease (increase) in restricted cash and due from banks .......... 5,602,031 (4,020,932)Proceeds from sale of tangible assets................................................ 216,085 11,651Net increase in equity securities accounted for using the equity

method of accounting .................................................................... (67,249) (98,861)Purchases of tangible assets .............................................................. (166,279) (209,396)Net decrease (increase) in derivative instrument assets ..................... 6,536,529 (9,392,141)Net decrease in other assets .............................................................. 81,581 96,033Net decrease in Cash Management Account (“CMA”) ....................... 1,099,152 133,491

Net cash provided by (used in) investing activities ........................... 13,301,850 (13,480,155)

CASH FLOWS FROM FINANCING ACTIVITIES:Net increase in deposits .................................................................... 8,321,962 22,092,217Net increase (decrease) in borrowings............................................... (4,122,115) 5,706,583Net increase (decrease) in borrowings from trust accounts ................ (1,498,754) 26,502Payment of cash dividends................................................................ (2,567) (200,326)Net increase (decrease) in derivative instrument liabilities ................ (7,412,834) 7,448,001Net increase (decrease) in other liabilities ........................................ (1,248,792) 565,195Issuance of capital stock................................................................... 298,560 698,320

Net cash provided by (used in) financing activities........................... (5,664,540) 36,336,492

NET INCREASE IN CASH AND DUE FROM BANKS........................ 7,033,642 597,216

CASH AND DUE FROM BANKS, BEGINNING OF YEAR (Note 30) . 4,793,630 4,196,414

CASH AND DUE FROM BANKS, END OF YEAR (Note 30).............. W—11,827,272 W— 4,793,630

See accompanying notes to consolidated financial statements

F-9

WOORI BANKNOTES TO CONSOLIDATED FINANCIAL STATEMENTS


1. GENERAL

Woori Bank (the” Bank”) was established in 1899 and is engaged in the commercial banking business under the BankingLaw, trust business under Financial Investment Services and Capital Market Act and foreign exchange business withapproval from the Bank of Korea (“BOK”) and the Ministry of Finance and Economy (“MOFE”).

On March 27, 2001, Korea Deposit Insurance Corporation (“KDIC”) established Woori Finance Holdings Co., Ltd.(“WFH”) by transferring all of the Bank’s common stock to WFH. The Bank is 100 percent owned by WFH as ofDecember 31, 2009. The Bank’s common stock and preferred stock amount to W—3,479,783 million and W—350,000million, respectively, and the Bank’s common and preferred shares issued and outstanding as of December 31, 2009 are696 million shares and 70 million shares, respectively. The head office of the Bank is located in Seoul, Korea. The Bankhas 890 branches and offices in Korea and 17 branches and offices in overseas as of December 31, 2009.

The Bank’s subsidiaries and affiliates as of December 31, 2009 and 2008 are summarized as follows (Unit: Korean wonin millions, Indonesian Rupiah in millions, U.S. Dollars in thousands):

(2009)Capital

stock BusinessSharesowned

Percentageof

ownership(%)

Date of thestatements of

financialposition

Consolidated:

Woori Credit Information Co., Ltd.(“WCI”) .......................................... W— 5,000 Credit Information 1,008,000 100.0 December 31

Woori America Bank ........................... US$ 52,500 Banking 10,500,000 100.0 December 31

P.T. Bank Woori Indonesia .................. IDR 170,000 Banking 1,618 95.2 December 31

Woori Global Market Asia Limited...... US$ 50,000 Banking 39,000,000 100.0 December 31

Woori Bank China Limited ................ US$ 308,814 Banking — 100.0 December 31

ZAO Woori Bank ............................... US$ 20,416 Banking 19,999,999 100.0 December 31

Accounted for using the equity method:

BC Card Co., Ltd. (“BC Card”) .......... W— 44,000 Credit Card 1,216,800 27.7 December 31

Korea BTL Infra Fund......................... W— 275,800 Banking 55,152,422 100.0

March 31,June 30,September 30,December 31

Korea Credit Bureau Co., Ltd. ............ W— 10,000 Credit Information 144,000 7.2 December 31

Korea Finance Security Co., Ltd.(“KFS”) .......................................... W— 6,000 Security 183,870 15.3 December 31

Woori SME 1st ABS Co., Ltd. ............ W— 8,297 Banking 82,960 5.0 December 31

Woori SME Asset SecuritizationSpecialty Co., Ltd. (*) .................... W— 5,460 Banking 54,600 5.0 December 31

Woori Service Networks Co., Ltd. ....... W— 480 Transportation 4,704 4.9 December 31

Woori Private Equity Fund .................. W— 245,700 Banking 71,124 29.0 December 31

(*) On December 23, 2009, Woori SME Asset Securitization Specialty Co., Ltd. completed its liquidation process.

F-10

(2008)Capital

stock BusinessSharesowned

Percentageof

ownership(%)


financialposition

Consolidated:

WCI .................................................... W— 5,040 Credit Information 1,008,000 100.0 December 31

Woori America Bank ........................... US$ 52,500 Banking 10,500,000 100.0 December 31

P.T. Bank Woori Indonesia .................. IDR 170,000 Banking 1,618 95.2 December 31

Woori Global Market Asia Limited...... US$ 50,000 Banking 39,000,000 100.0 December 31

Woori Bank China Limited ................ US$ 308,814 Banking — 100.0 December 31

ZAO Woori Bank ............................... US$ 20,416 Banking 19,999,999 100.0 December 31

Accounted for using the equity method:

BC Card.............................................. W— 44,000 Credit Card 1,216,800 27.7 December 31

Korea BTL Infra Fund......................... W— 213,011 Banking 46,602,205 100.0

March 31,June 30,September 30,December 31

Korea Credit Bureau Co., Ltd. ............ W— 10,000 Credit Information 144,000 7.2 December 31

KFS .................................................... W— 6,000 Security 183,870 15.3 December 31

Woori Marlin 2nd ABC Co., Ltd. ........ W— 110 Banking 1,100 5.0 December 31

Woori SME 1st ABS Co., Ltd. ............ W— 8,297 Banking 82,960 5.0 December 31

Woori SME Asset SecuritizationSpecialty Co., Ltd. .......................... W— 5,460 Banking 54,600 5.0 December 31

Woori Service Networks Co., Ltd. ....... W— 480 Transportation 4,704 4.9 December 31

Woori Private Equity Fund .................. W— 231,810 Banking 67,175 29.0 December 31

Trust accounts, which Bank guarantees a fixed rate of return on, and/or the repayment of principal of, are included inthe consolidated financial statements as of December 31, 2009 and 2008, pursuant to the banking regulationspromulgated by the Financial Supervisory Commission in the Republic of Korea.

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Consolidated Financial Statement Presentation

The Bank and its domestic subsidiaries maintain their official accounting records in Korean Won and prepare statutoryconsolidated financial statements in the Korean language (Hangul) in conformity with accounting principles and bankingaccounting standards generally accepted in the Republic of Korea. Certain accounting principles and banking accountingstandards applied by the Bank and its domestic subsidiaries that conform with financial accounting standards andaccounting principles in the Republic of Korea may not conform with accounting principles and banking accountingstandards generally accepted in other countries. Accordingly, these financial statements are intended for use by those whoare informed about Korean accounting principles and practices. The accompanying financial statements have beenrestructured and translated into English from the Korean language financial statements. Certain information included inKorean language consolidated financial statements, but not required for a fair presentation of the Bank and itssubsidiaries’ financial position, results of operations, changes in shareholder’s equity or cash flows, is not presented inthe accompanying financial statements.

The accompanying consolidated financial statements were approved by the board of directors on February 9, 2010.

The significant accounting policies followed in preparing the accompanying consolidated financial statements aresummarized below. The Bank renamed the balance sheets as of December 31, 2009 and 2008 to statements of financialposition in accordance with Article 1-2 of the Act on External Audit for Stock Companies amended in 2009.

Accounting for Consolidation

(1) Investment and Equity Account Elimination and Inter-company Transaction Elimination

Investments in subsidiaries and equity accounts of subsidiaries were eliminated at the date of the latestacquisition, which resulted in the Bank’s obtaining control of the subsidiaries. The differences between acquisitioncost and net asset acquired are recorded either in goodwill or negative goodwill, which are amortized using the

F-11

straight-line method over five years. If additional shares are purchased after control of the subsidiaries have beenobtained, the differences between acquisition cost and net assets acquired are credited or charged to capital surplusor capital adjustments. If the acquisition date is not the normal financial reporting date of subsidiaries, the closestnormal financial reporting date to the acquisition date is regarded as the acquisition date. All significantinter-company transactions are eliminated in the consolidated financial statements.

(2) Translation of Financial Statements for Overseas Subsidiaries Subject to the Consolidation

The financial statements of subsidiaries were translated based on the Base Rate published by Seoul MoneyBrokerage Services, Ltd. (“Base Rate”) at the dates of the statements of financial position as follows:

Korean Won

Currency 2009 2008

1 (US$)....................................................................................................... 1,167.60 1257.50

100 (Indonesian Rupiah) ............................................................................. 12.38 11.48

(3) Basis Date of the Consolidated Financial Statements

Basis date of the consolidated financial statements is the year-end reporting date of the Bank. When the year-endreporting dates of the subsidiaries are different from that of the Bank, the consolidated financial statements areprepared with financial statements of subsidiaries of the same year-end reporting date of the Bank.

Securities

(1) Classification of Securities (Excluding equity securities accounted for using the equity method)

The Bank classifies securities on the statements of financial position as trading, available-for-sale orheld-to-maturity, based on their marketability, intention of acquisition and ability to hold those securities.Specifically, the Bank classifies securities as trading securities when those securities are bought and heldprincipally for sale in the near term to generate profits from short-term price differences and traded frequently.Debt securities that have fixed or determinable payment amount and fixed maturity are classified asheld-to-maturity, only if the Bank has both the positive intent and ability to hold such securities to maturity. Allother securities are classified as available-for-sale.

(2) Reclassification of Securities

If there is a change in the Bank’s objective and ability to hold securities, available-for-sale securities are allowedto be reclassified as held-to-maturity, and vice versa. Whereas, if the Bank sells held-to-maturity securities,exercises a right to prepay, or reclassifies held-to-maturity securities as available-for-sale within the current yearand the previous two fiscal years, all debt securities that are owned or purchased thereafter cannot be classifiedas held-to-maturity. On the other hand, trading securities cannot be reclassified as other categories of securities,and vice versa. As an exception, however, when certain trading securities lose their marketability, that is, whenthose securities can no longer be traded in an active market, such securities are reclassified as available-for-salesecurities. In rare cases, the trading securities may be reclassified as other categories of securities when the Bank’sintention changes not to trade the securities in the near future.

(3) Valuation of Trading Securities

Trading securities are stated at acquisition cost plus incidental expenses, with acquisition cost determined usingthe individual moving average method for the equity securities and the specific identification method for the debtsecurities. For the debt securities, the difference between their acquisition costs and face values is amortized overthe remaining terms of the securities by applying the effective interest method and added to or subtracted fromthe acquisition costs and interest income of the remaining period. If the fair value of trading securities differs fromthe book value, trading securities are recorded at their fair value in the statements of financial position andunrealized holding gains and losses are included in current earnings.

F-12

(4) Valuation of Available-for-sale Securities

Available-for-sale securities are stated at acquisition cost plus incidental expenses, with acquisition costdetermined using the individual moving average method for the equity securities and the specific identificationmethod for the debt securities. For the debt securities, the difference between their acquisition costs and facevalues is amortized over the remaining terms of the securities by applying the effective interest method and addedto or subtracted from the acquisition costs and interest income of the remaining period. Available-for-salesecurities are accounted for at their fair value in the statements of financial position. Unrealized holding gains andlosses for available-for-sale securities are accounted for as accumulated other comprehensive income (loss) untilrealized; that is, at the time when such securities are disposed of or written down to recognize impairment loss,the cumulative accumulated other comprehensive income (loss) related to those securities is reflected in currentearnings. As an exception, however, those available-for-sale equity securities that are not traded in an activetrading market are accounted for at their acquisition cost, only if their fair value cannot be reliably measured.

If the fair value of equity securities (Net asset fair value in case of non-marketable equity securities stated atacquisition cost) is below the acquisition cost and the pervasive evidence of impairment exists, the carrying valueis adjusted to fair value and the resulting valuation loss is charged to current operations. If the recoverable valueof debt securities is below the amortized cost and the pervasive evidence of impairment exists, the carrying valueis adjusted to the recoverable value and the resulting valuation loss is charged to current operations. With respectto impaired securities, any unrealized valuation gain or loss of securities previously included in accumulated othercomprehensive income (loss) account is reversed.

(5) Valuation of Held-to-maturity Securities

Held-to-maturity securities are stated at acquisition cost plus incidental expenses, with acquisition costdetermined using the specific identification method. Held-to-maturity securities are measured at amortized cost.The difference between their acquisition cost and face value is amortized over the remaining terms of the securitiesby applying the effective interest method and added to or subtracted from the acquisition costs and interest incomeof the remaining period.

When the recoverable amount is less than the amortized cost of a debt security, and there is any objective evidenceof impairment loss, their book values are adjusted to recoverable amount. The difference between the recoverableamounts and book values is accounted for as impairment loss of held-to-maturity securities.

(6) Valuation of Equity Securities Accounted for Using the Equity Method

Equity securities held for investment in companies in which the Bank is able to exercise significant influence overthe investees (in accordance with the Banking Act, if the Bank holds 15 percent or more of the issued shares, theBank is considered being able to exercise significant influence) are accounted for using the equity method ofaccounting.

The Bank’s share in net income or net loss of investees is included in current operations. Changes in the retainedearnings of investee due to investee’s material accounting error, but not material to the Bank are included incurrent operations, and changes in the retained earnings of investee due to investee’s accounting change areadjusted by restating prior year’s retained earnings before appropriations. Changes in the capital surplus or othercapital accounts of investee are reflected as changes in shareholder’s equity by equity method.

If the carrying amount of an investment in an associate falls below zero as a result of reflecting the associate’slosses when the equity method is applied, the investor discontinues recognizing further changes in its share ofequity interest in the associate and the investment is accounted for at nil value. After the investor ceases to applythe equity method, if changes in the investor’s share of equity interest in the associate occur with subsequentreporting of current income by the associate, the investor resumes application of the equity method only after itsshare of the profits equals the share of losses not recognized.

(7) Reversal of Impairment Loss on Available-for-sale Securities and Held-to-maturity Securities

The reversal of impairment loss on available-for-sale securities, when it is objectively related to an eventoccurring after the recognition of impairment loss, is recognized as current income. However, the reversal amountthat is recognized as current income shall not exceed the amount of impairment loss previously recognized forequity securities and the carrying amount of the debt securities shall not exceed what the amortized cost wouldhave been had the impairment not been recognized at the date the impairment is reversed. If the fair value of theimpaired available-for-sale securities subsequently recovers, but if it is not regarded as a reversal of impairmentloss, the increased amount is accounted for as accumulated other comprehensive income.

F-13

The reversal of impairment loss on held-to-maturity securities, when it is objectively related to an event occurringafter the recognition of impairment loss, is recognized as current income. However, the carrying amount of theheld-to-maturity securities shall not exceed what the amortized cost would have been had the impairment not beenrecognized at the date the impairment is reversed.

(8) Valuation at the Time of Reclassification of Securities

When held-to-maturity securities are reclassified to available-for-sale, those securities are stated at the fair valueon the reclassification date and the difference between the fair value and book value is recorded in accumulatedother comprehensive income (loss) as gain or loss on valuation of available-for-sale securities. For available-for-sale securities reclassified to held-to-maturity, gains or losses on valuation of available-for-sale securities,which had been accumulated until the reclassification date, continue to be stated in accumulated othercomprehensive income (loss) and be amortized using the effective interest method and added to or subtracted frominterest income until maturity. The difference between the fair value on the reclassification date and face valueof the available-for-sale securities reclassified to held-to-maturity is amortized using the effective interest methodand added to or subtracted from interest income.

Trading securities are allowed to be reclassified into available-for-sale securities, when the trading securities losetheir marketability and the Bank’s intention changes not to trade the securities in the future. The securities arestated at fair value on the reclassification date as new acquisition cost.

Interest Income Recognition

The Bank recognizes interest income on loans, securities and other on an accrual basis, except for interest income onloans having overdue, as defined, interest, principal and loans to customers who are bankrupt without being secured byguarantee of government or financial institution. When a loan is reclassified as a non-accrual loan, the related accruedinterest income is reversed and future interest income is recognized on a cash basis.

Allowances for Possible Losses on Loans and Confirmed Acceptances and Guarantees

The Bank classifies corporate credits into 16 credit grades based on borrowers’ capacity to repay, credit risk and otherfactors. Credits to small companies and households are classified by past due period and bankruptcy proceedings withoutconsidering borrowers’ capacity to repay. The Bank generally classifies all credits to a single borrower in the samecategory of classification, except for credits guaranteed or credits collateralized by bank deposits, real estate and otherassets, taking into consideration of the ability of guarantors to serve the surety obligation, collateral value and other. Theclassification criteria for credits and the minimum allowance ratio of possible losses on loans pursuant to the policiesof the Bank are as follows:

Loan loss provisioning standards by the Bank

Credit grade Classification criteria Corporate Households Credit cards

AAA~BB- ............................. Normal 0.85 (0.9)% or more (*) 1% or more 1.5% or more

B+, B-, C.............................. Precautionary 7% or more 10% or more 15% or more

D .......................................... Substandard 20% or more 20% or more 20% or more

D .......................................... Doubtful 50% or more 55% or more 60% or more

D .......................................... Loss 100% 100% 100%

(*) The allowance for possible loan losses on corporate credits classified as normal and for industries of whichbusiness cycle is sensitive (construction, wholesale and retail trade, accommodation and food service activities,real estate activities and renting and leasing industry classified by Korea Standard Industry Classification) is 0.9percent or more.

For the corporate credits amounting to over W—3 billion per borrower classified as grade B+ or below or designated bythe loan committee, the Bank provides an allowance for possible loan losses using a more detailed classification criteriaof which loan loss ratios varies from 0.85 (0.9) to 100.0 percent of its principal and the resulting effect is charged tocurrent operations.

The Bank, based on the asset quality classification above, measures allowance for possible loan losses by the discountedcash flow (DCF) method, loan loss experience ratio on a single loan and certain group of loans, and the percentage ofloan loss allowance established by the Financial Supervisory Commission.

F-14

The classification criteria for corporate credits and the allowance ratio of possible losses on loans are as follows:

Grade Borrowers’ repayment capability and past due period Classification Ratios

AAA • Minimum credit risk with best credit status• Below one month past due

Normal 0.85 (0.9)% or above

AA • Very low credit risk with strong repayment capability• Below one month past due


A+ • Low credit risk with stable repayment capability• Below one month past due


A- • Low credit risk with low financial risk• Below one month past due


BBB+ • Acceptable credit risk with stable repayment capability• Below one month past due


BBB • Possible failure in financial commitment on the obligationwith proper credit status

• Below one month past due


BBB- • Possible failure in financial commitment on the obligationwith a little restrictive credit status



BB+ • Collateralized asset for previously given credit need to bechecked and new credit to borrower need to be secured andcredit status is a little high



BB • Procedure to protect both previously given and new creditto borrower is required and credit status is very restrictive



BB- • A little negative cash flow is present and credit status isgetting worse



B+ • Continued credit status degrade will likely impair theborrower’s ability to repayment

• From one month past due to below three months past due

Precautionary 7% or above

B- • Precautionary status in credit status and a sign of failure inrepayment can be watched



C • Precautionary status in credit status and probable failure inrepayment is expected



D • Principal and interest is past due over 90 days which can beascribed to serious credit status degrade

• Collectable portion of credits extended to the borrowers,which are three months or more past due, defaulted, underliquidation and bankruptcy proceeding or in the middle ofcessation of business

Substandard 20% or above

F-15

Grade Borrowers’ repayment capability and past due period Classification Ratios


• Amount in excess of collectible portion of credits extendedto customers, which are from three months to below twelvemonths past due

Doubtful 50% or above


• Amount in excess of collectable portion of credits extendedto the borrowers, which are twelve months or more pastdue, defaulted, under liquidation and bankruptcy proceedingor in the middle of cessation of business

Estimated Loss 100%

The Bank provides allowance for possible losses on confirmed acceptances and guarantees, unconfirmed acceptances andguarantees and bills endorsed based on the credit classification and cash conversion factor of the respective exposure.In addition, the Bank provides other allowance for possible losses on unused line of credit limit of credit card and unusedcredit line of consumer and corporate loans based on the cash conversion factor and the credit classification of therespective exposer.

Deferred Loan Origination Fees and Costs

The Bank recognizes deferred loan origination fees and costs when it is probable that future economic benefits associatedwith the loan will flow into the entity and when its cost can be measured reliably. The Bank reports deferred loanorigination fees and costs as a contra loans account. Deferred loan origination fees and costs are amortized (or reversed)on a straight-line method and recognized as interest on loans.

Restructuring of Loans

A loan, whose contractual terms are modified in a troubled debt restructuring, is recorded at the present value of expectedfuture cash flows discounted using the original effective interest rate, the loan’s observable market price or the fair valueof the collateral if the loan is collateral dependent. If the loan will be converted to the equity securities and the numberof stock to be issued is determined, the loan is recorded at the lower of its carrying value or fair value of the securitiesto be issued. The difference between book value and present value is recorded as allowance for possible loan losses, andis amortized over the remaining maturity using the effective interest rate method, and the amortization amount isrecorded as interest income.

Disposal of Loans

In case the selling prices of loans are determined by the third party specialist, the Bank recognizes gain or loss ondisposal of loans as non-operating income or expenses based on the difference between the selling price and the bookvalue of previous year end.

Tangible Assets and Depreciation

Tangible assets are recorded at purchase cost or production cost including the incidental expenses. When an asset isacquired by means of capital contributions in kind, donations and/or other forms of non-reciprocal transfers, the cost isrecorded at its fair value. Tangible asset were revalued upward in accordance with Asset Revaluation Law. The Bankrecognizes the borrowing costs relating to the production, purchase and construction of tangible assets as an expensewhen are incurred.

Depreciation is computed using the declining balance method (the straight-line method for buildings purchased sinceJanuary 1, 1995 and leasehold improvements). The estimated useful lives of the assets are as follows:

Year

Buildings.......................................................................................................................................... 40

Leasehold improvements................................................................................................................... 5

Equipment and furniture ................................................................................................................... 5

F-16

Intangible Assets

Intangible assets are recorded at the production cost or purchase cost, plus incidental expenses. Expenditures incurredin conjunction with development of new products or technology, in which the elements of costs can be individuallyidentified and future economic benefits are probably expected, are capitalized as development costs under intangibleassets. If the Bank donates assets such as buildings to government or the local government and is given a right to useor benefit from the assets, the donated assets are recorded as beneficial donated assets under intangible assets. Intangibleassets are amortized using the straight-line method over the estimated useful lives of five years for development costs,contractual benefit period for the beneficial donated assets and five years for other intangible assets.

Valuation Allowance for Non-Business Use Property

Non-business use property recorded when the Bank acquires collateral by foreclosure of mortgage for loans. If theauction-bidding price is lower than book value, the difference is provided as a valuation allowance with the valuationloss charged to current operations.

Recognition of Asset Impairment

When the book value of assets (except for trading securities, available-for-sale securities, held-to-maturity securities andassets valued at present value) exceeds the recoverable value of the assets due to obsolescence, physical damage or asharp decrease in market value and the difference is material, those assets are adjusted to recoverable value in thestatements of financial position with the resulting impairment loss charged to current operations. If the recoverable valueof assets increases in subsequent years, the increase in value is credited to operations as a gain until the recoverable valueequals the book value of the assets before the impairment loss was recognized.

Amortization of Discount (Premium) on Debentures

Discount or premium on debentures issued is amortized over the period from issuance to maturity using the effectiveinterest rate method. Amortization of discount or premium is added to or subtracted from interest expense on thedebentures.

Accrued Severance Benefits

Directors and employees with more than one year of service are entitled to receive a lump-sum payment upon terminationof their service with the Bank, based on their length of service and rate of pay at the time of termination. They are entitledto receive a lump-sum equivalent to the average 30-day pay for each year. The accrued severance benefits, which wouldbe payable assuming all eligible employees and directors were to resign as of December 31, 2009 and 2008, amountedto W—139,905 million and W—215,441 million, respectively. Actual payment of severance benefits amounted to W—178,235million and W—87,571 million in 2009 and 2008, respectively.

The funding of the severance liability is not required. However, the Bank has insured a portion of its obligations forseverance benefits in order to obtain the related tax benefits, by making deposits with life insurance companies. The Bankhas purchased severance insurance, which meets the funding requirement for tax purposes, and made deposits withSamsung Life Insurance and others. The individual severance insurance deposits, amounting to W—95,327 million andW—146,612 million as of December 31, 2009 and 2008, respectively, are presented as a deduction from accrued severancebenefits because the severance insurance’s beneficiaries are the Bank’s directors and employees.

Bonds under Resale or Repurchase Agreements

Bonds purchased under resale agreements are recorded as loans and bonds sold under repurchase agreements are recordedas borrowings when the Bank purchases or sells securities under resale or repurchase agreements.

Provisions, Contingent Liabilities and Contingent Assets

A possible obligation that arises from past events and whose existence will be confirmed only by the occurrence ornon-occurrence of one or more uncertain future events not wholly within the control of the Bank is recognized ascontingent liabilities when it is probable that an outflow of resources embodying economic benefits required and theamount of the obligation can be measured with sufficient reliability. Where the effect of the time value of money ismaterial, the amount of the liabilities is the present value of the expenditures expected to be required to settle theobligation. In addition, as some or all expenditures required to settle a provision is expected to be reimbursed by anotherparty, the reimbursement is recognized as separate assets in the statement of financial position and related income maybe offset against expense in the statements of income.

F-17

Accounting for Derivative Instruments

The Bank accounts for derivative instruments pursuant to the Interpretations on Financial Accounting Standards 53-70on accounting for derivative instruments. Derivative instruments are classified as used for trading activities or forhedging activities according to their transaction purpose. All derivative instruments are accounted for at fair value withthe valuation gain or loss recorded as an asset or liability. If the derivative instrument is not part of a transactionqualifying as a hedge, the adjustment to fair value is reflected in current operations. The accounting for derivativetransactions that are part of a qualified hedge based both on the purpose of the transaction and on meeting the specifiedcriteria for hedge accounting differs depending on whether the transaction is a fair value hedge or a cash flow hedge.Fair value hedge accounting is applied to a derivative instrument designated as hedging the exposure to changes in thefair value of an asset or a liability or a firm commitment (hedged item) that is attributable to a particular risk. The gainor loss both on the hedging derivative instruments and on the hedged item attributable to the hedged risk is reflected incurrent operations. Cash flow hedge accounting is applied to a derivative instrument designated as hedging the exposureto variability in expected future cash flows of an asset or a liability or a forecasted transaction that is attributable to aparticular risk. The effective portion of gain or loss on a derivative instrument designated as a cash flow hedge isrecorded as other accumulated comprehensive income (loss) and the ineffective portion is recorded in current operations.The effective portion of gain or loss recorded as other accumulated comprehensive income (loss) is reclassified to currentearnings in the same period during which the hedged transaction affects earnings. If the hedged transaction results in theacquisition of an asset or the incurrence of a liability, the gain or loss in other accumulated comprehensive income (loss)is added to or deducted from the asset or the liability.

Income Tax Expense

The Bank recognized the deferred tax assets or liabilities for the differences attributed to the items those were adjustedfor tax purposes. Income tax expense is determined by adding or deducting the total income tax and surtaxes to be paidor reversed for the current period and the changes in deferred income tax assets or liabilities. In addition, current taxand deferred tax is charged or credited directly to equity if the tax relates to items that are credited or charged directlyto equity in the same or different period and W—333,193 million and W—191,158 million of deferred tax is charged directlyto equity for the years ended December 31, 2009 and 2008, respectively.

Deferred tax is recognized on differences between the carrying amounts of assets and liabilities in the financialstatements and the corresponding tax bases used in the computation of taxable profits. Deferred tax liabilities aregenerally recognized for all taxable temporary differences with some exceptions and deferred tax assets are recognizedto the extent that it is probable that taxable profit will be available against which the deductible temporary differencecan be utilized. In addition, since the Bank does not classify the items in statements of financial position into currentitems and non-current items, deferred tax assets (liabilities) are not separately classified into current and non-current.

Accounting for Foreign Currency Transactions and Translation

The Bank maintains its accounts in Korean Won. Transactions in foreign currencies are recorded in Korean Won basedon the prevailing rate of exchange on the transaction date. The Korean Won equivalent of monetary assets and liabilitiesdenominated in foreign currencies are translated in these financial statements based on the Base Rate (announced bySeoul Money Brokerage Services, Ltd. (“Base Rate”) W—1,167.60 and W—1,257.50 to $1.00 at December 31, 2009 and2008, respectively) or cross rates at the dates of the statements of financial position. Translation gains and losses onforeign currency denominated assets and liabilities are credited or charged to operations. Financial statements ofoverseas branches and subsidiaries in which investments are accounted for the using equity method are translated basedon the Base Rate announced by Seoul Money Brokerage Services, Ltd. (“Base Rate”) at the dates of the statements offinancial position.

Earnings per Share

Basic earnings per share (“EPS”) is computed by dividing the net income applicable to common shares by the weightedaverage number of common shares outstanding for the year. Diluted EPS reflects the potential dilution that could occurif securities or other contracts to issue common stock were exercised.

Accounting for Trust Accounts

The Bank separately maintains the books of accounts and financial statements in connection with the trust operations(trust accounts) from those of the bank accounts in accordance with the Financial Investment Services and Capital MarketAct. The funds lent to the trust accounts are recorded as loans to the trust account and the funds borrowed from the trustaccounts are recorded as borrowing from the trust accounts. The Bank receives fees for operation and management ofthe trust business and accounts for them as fees and commissions from trust accounts.

F-18

With respect to certain trust account products, the Bank guarantees the repayment of the principal of the trust accountsand, in certain cases, a fixed rate of return. If income from such trust accounts is insufficient to pay the guaranteedamount, such a deficiency is satisfied by using special reserves maintained in the trust accounts, offsetting trust feepayable to the bank accounts and receiving compensation contributions from the bank accounts of the Bank. If the Bankpays compensating contributions to the guaranteed return trusts to cover such deficiencies, these contributions arereflected as other operating expense of the bank accounts.

Merchant Banking Account

Based on the Law of Structure Improvement in Financial Industry, the Bank merged Woori Investments Bank Co., Ltd.and has been conducting CMA business and others. The assets, liabilities and profits (losses) related to this business areaccounted using merchant banking industry accounting standards and banking accounting standards.

Application of the Statement of Korea Accounting Standards (“SKAS”)

The Korea Accounting Standard Board (KASB) under the Korea Accounting Institute (KAI) issued the SKAS forachieving a set of Korean accounting standards that should be internationally acceptable and comparable. The Statementssupersede the relative articles of existing accounting standards and constitute generally accepted accounting principlesof the Republic of Korea. The Bank has implemented SKAS No.1 (Accounting Changes and Correction of Errors) throughNo.25 (Consolidated Financial Statements) as of or before December 31, 2008.

Reclassification in Prior Year’s Financial Statements

Certain reclassification has been made in prior year’s financial statements to conform to accounting policies changed inthe current year. Such reclassification did not have an effect on previously reported ordinary income, net income and netassets.

3. CASH AND DUE FROM BANKS

(1) Cash and due from banks as of December 31, 2009 and 2008 consisted of the following (Unit: Korean Won in millions):

2009 2008

Cash and checks ................................................................................................... W— 3,387,396 W— 3,302,125

Foreign currencies ................................................................................................ 339,089 373,606

Due from banks in local currency ......................................................................... 10,572,014 7,298,899

Due from banks in foreign currencies ................................................................... 2,124,577 4,016,835

W— 16,423,076 W— 14,991,465

F-19

(2) Due from banks by financial institutions as of December 31, 2009 and 2008 were comprised of the following (Unit:Korean Won in millions):

Financialinstitution

Interest rate(%)2009 2009 2008

Due from banks in localcurrency .................... Reserve deposits BOK — W— 3,833,828 W— 7,008,280

Due from banks on time Domestic banks 2.7~2.8 424,703 83,263

Other due from financialinstitutions Domestic banks — 370 119

Other 0.0~2.0 6,313,113 207,237

10,572,014 7,298,899

Due from banks inforeign currencies: .... Reserve deposits BOK — 255,941 390,181

Due from banks ondemand Other — 1,338,179 529,382

Due from banks on time Domestic banks 1.1~3.4 110,922 —

Foreign financialinstitutions 0.7~1.8 67,151 311,032

Other due from financialinstitutions

Domesticfinancialinstitutions 0.1~0.2 13,874 212,554

Foreign financialinstitutions 0.0~1.5 338,510 2,573,686

2,124,577 4,016,835

W—12,696,591 W—11,315,734

F-20

(3) Restricted due from banks as of December 31, 2009 and 2008 consisted of the following (Unit: Korean Won in millions):

Financial institution 2009 2008 Reason of restriction

Due from banks in localcurrency:

Reserve deposits ............... BOK W— 3,833,828 W— 7,008,280 BOK Act

Other deposits................... Samsung Securities and other 142,987 2,954 Futures margin

Korea Stock Exchange 125 125 Reserve for compensationfor default loss andother

Other 12 11 Pledge for commissionincomes

3,976,952 7,011,370

Due from banks in foreigncurrencies:

Due from banks ondemand .........................

BOK 255,941 390,181 BOK Act

Bank of Japan and other 12,387 5,230 Reserve deposits andother

Central Bank of Republic ofIndonesia and other

80,016 65,379 Reserve deposits andother

Due from banks on time ... Industrial & CommercialBank of China and other

8,640 23,567 Reserve deposits andother

Other ............................... Goldman Sachs Capital andother

33,750 2,695,801 Collateral for derivativesand other

Bangladesh Bank and other 228,118 6,307 Reserve for setup offinancial institutionand other

618,852 3,186,465

W— 4,595,804 W—10,197,835

F-21

4. SECURITIES

(1) Securities other than equity securities accounted for using the equity method of accounting as of December 31, 2009 and2008 consisted of the following (Unit: Korean Won in millions):

(2009) Face valueAcquisition

costAmortized

cost Fair value

Trading securities:

Equity securities .............................................................. W— — W— 230,889 W— — W— 240,433

Government bonds (*1) ................................................... 2,449,615 2,448,902 2,454,449 2,480,456

Finance debentures (*1)................................................... 1,426,200 1,425,306 1,428,406 1,424,197

Corporate bonds (*1) ....................................................... 207,000 208,005 209,543 209,006

Beneficiary certificates .................................................... — 410,004 — 420,967

Commercial paper ........................................................... — 3,611,969 — 3,622,405

Other ............................................................................... — 68,693 — 71,288

8,403,768 8,468,752

Available-for-sale securities:

Equity securities .............................................................. — 1,004,567 — 2,229,845

Capital contributions ....................................................... — 270,550 — 255,400



Corporate bonds (*1) ....................................................... 295,070 301,179 301,086 292,515

Beneficiary certificates .................................................... — 1,562,724 — 1,501,117

Equity securities in foreign currencies (*3) ..................... — 300,393 — 216,389

Debt securities in foreign currencies (*2)(*3) .................. 1,022,257 986,162 983,321 568,281

9,109,522 9,758,128

Held-to-maturity securities:

Government bonds ......................................................... 1,708,561 1,728,054 1,718,011 1,710,047

Finance debentures ......................................................... 10,000,000 9,980,765 9,995,162 10,019,340

Corporate bonds ............................................................. 616,560 657,648 614,110 768,496

Debt securities in foreign currencies (*3) ........................ 196,586 199,205 197,487 197,486

12,521,707 12,565,672 12,524,770 12,695,369

W—30,078,962 W—30,922,249

F-22

(2008) Face valueAcquisition

costAmortized

cost Fair value

Trading securities:

Equity securities .............................................................. W— — W— 245,352 W— — W— 217,542


Finance debentures (*1)................................................... 1,008,500 991,642 991,155 1,006,872

Corporate bonds (*1) ....................................................... 108,633 108,051 107,456 109,593

Beneficiary certificates .................................................... — 184,439 — 189,469

Commercial Paper ........................................................... 3,119,800 3,073,036 3,094,651 3,098,310

Other ............................................................................... — 63,693 — 62,002

6,734,662 6,851,733

Available-for-sale securities:

Equity securities .............................................................. — 1,749,679 — 2,392,854

Capital contributions ....................................................... — 228,834 — 264,598



Corporate bonds (*1) ....................................................... 373,070 377,248 377,415 370,201

Beneficiary certificates .................................................... — 1,788,380 — 1,778,582

Equity securities in foreign currencies (*3) ..................... — 323,724 — 276,094

Debt securities in foreign currencies (*2)(*3) .................. 2,282,297 2,289,151 2,289,695 960,400

Beneficiary certificates in foreign currencies (*3) ........... — 30,196 — —

14,453,262 13,880,715

Held-to-maturity securities:

Government bonds ......................................................... 626,700 621,141 616,315 631,841

Finance debentures ......................................................... 5,160,000 5,152,358 5,151,742 5,256,543

Corporate bonds ............................................................. 215,447 214,153 214,291 217,509

Debt securities in foreign currencies (*3) ........................ 183,715 183,594 183,471 183,471

6,185,862 6,171,246 6,165,819 6,289,364

W—27,359,170 W—27,021,812

(*1) Fair value of trading debt securities and available-for-sale debt securities in local currency is measured at theirminimum base price at the dates of the statements of financial position announced by independent securityappraisal companies and accrued interest income was excluded from the fair value amounts.

(*2) Fair value of available-for-sale debt securities in foreign currencies is determined by the latest market pricesannounced by market price information providers or base price at the dates of the statements of financial positionannounced by independent security appraisal companies.

(*3) Acquisition costs of securities in foreign currencies are translated into Korean Won based on the Base Rate at thedates of the statements of financial position.

F-23

(2) Available-for-sale equity securities and capital contributions as of December 31, 2009 and 2008 were as follows (Unit:Korean Won in millions, Shares in thousands):

(2009) Shares

Percentageof

ownership(%)

Acquisitioncost Book value

(Equity securities)Listed equity securities:

Valuation by independent companies (*1):Hynix Semiconductor Inc. (“Hynix”).................................... 36,877 6.3 W— 138,629 W— 771,061Hyundai Engineering & Construction Co., Ltd. ................... 8,310 7.5 120,960 541,463Daewoo International Corporation ........................................ 1,931 2.0 4,602 54,775Other ................................................................................... 14,959 3,220

Valuation by market value:Celltrion, Inc. ...................................................................... 3,021 2.8 27,642 45,318SK Networks Co., Ltd. (“SK Networks”) ............................. 4,000 1.6 17,176 42,005Hyundai Engineering & Construction Co., Ltd. .................... 420 0.4 6,114 29,778Hyundai Corporation ............................................................ 1,080 4.8 14,612 22,788YTN .................................................................................... 3,110 7.4 12,634 14,462Other ................................................................................... 32,087 35,738

389,415 1,560,608

Unlisted equity securities:Stocks subject to fair value valuation:

Hyundai Merchant Marine Co., Ltd. (Preferred stock) .......... 3,334 2.2 50,005 59,872MKIF Reit 2 ........................................................................ 11,356 13.3 47,914 46,740Korea Securities Corporation ............................................... 5,310 7.8 27,186 44,224Pantech Co., Ltd. ................................................................. 104,487 6.3 16,625 43,467Kocref NPS Reit 2 ............................................................... 6,000 13.3 30,000 41,976Dream Hub PFV Co., Ltd..................................................... 4,000 2.0 20,000 21,300Kocref Cr-Reit VI ................................................................ 3,800 14.5 19,000 20,034New Airport Hiway Co., Ltd. ............................................... 923 2.1 5,072 18,328Kocref Cr-Reit XI ................................................................ 750 15.0 14,250 16,001Daol Trust............................................................................ 1,500 15.0 1,500 11,838MKIF ................................................................................... 162 15.0 11,122 11,171Kocref Reit XIV .................................................................. 595 14.9 6,744 10,505Korea Aerospace Industries Co., Ltd. (Preferred stock) ........ 2,006 2.3 22,338 7,296Daewoo Electronics Corp. .................................................... 5,717 5.4 13,662 4,465Other ................................................................................... 40,574 52,020

Stocks excluded from fair value valuation (*2):Samsung Life Insurance Co., Ltd. ........................................ 496 2.5 142,122 142,122Consumer Credit Assistant Fund Co., Ltd............................. 29 3.9 86,274 86,274UAMCO., Ltd. ..................................................................... 11 15.0 10,500 10,500Other .................................................................................. 50,264 21,104

615,152 669,237

1,004,567 2,229,845

(Capital contributions)Capital contributions subject to fair value valuation:

Vogo Private Equity Fund .................................................... 13.8 67,413 58,890Macquarie Korea Opportunities Fund .................................. 5.8 52,617 50,077Consus Investment No. 3 Private Equity .............................. 13.3 19,385 18,245Other .................................................................................. 33,072 30,692

Capital contributions excluded from fair value valuation (*2):Korea Asset Management Corporation (“KAMCO”).............. 1.4 11,633 11,633Restructuring Fund............................................................... 7.7 31,244 31,244Other ................................................................................... 55,186 54,619

270,550 255,400

W— 1,275,117 W— 2,485,245

F-24

(2008) Shares

Percentageof

ownership(%)

Acquisitioncost Book value

(Equity securities)Listed equity securities:Valuation by independent companies (*1):

Hyundai Engineering & Construction Co., Ltd. ....................... 11,786 10.7 W— 171,552 W— 600,610Hynix ..................................................................................... 36,877 8.0 138,629 227,310SK Networks ............................................................................ 6,001 2.4 25,762 47,854Daewoo International Corporation ............................................ 1,875 2.0 4,602 38,375Hyundai Corporation ................................................................ 2,862 12.8 38,717 37,604Other ...................................................................................... 14,960 2,391

Valuation by market value:POSCO .................................................................................... 872 1.0 367,024 331,310Hyundai Engineering & Construction Co., Ltd. ........................ 4,166 3.7 60,652 237,925Daewoo Engineering & Construction Co., Ltd. ......................... 10,561 3.2 186,519 93,782SK Networks ............................................................................ 5,008 2.0 21,503 42,070Shinhan Financial Group .......................................................... 1,258 0.3 72,592 37,365KP Chemical Corporation ......................................................... 8,167 8.4 16,342 36,669Hyundai Corporation ................................................................ 2,208 9.9 29,872 32,015Other ....................................................................................... 106,173 103,549

1,254,899 1,868,829

Unlisted equity securities:Stocks subject to fair value valuation:

MKIF Reit 2 ........................................................................ 7,254 13.3 73,692 74,591Hyundai Merchant Marine Co., Ltd. (Preferred stock) .......... 3,334 2.2 50,005 51,748Kocref NPS Reit 2 ............................................................... 6,000 13.3 30,000 41,934Korea Securities Corporation ............................................... 5,310 7.8 27,186 37,379Kocref Cr-Reit VI ................................................................ 3,800 14.5 19,000 20,037Kocref Cr-Reit XI ................................................................ 750 15.0 14,250 15,634New Airport Hiway Co., Ltd. ............................................... 923 2.1 5,072 14,053MKIF ................................................................................. 156 15.0 10,838 10,435Korea Aerospace Industries Co., Ltd. (Preferred stock) ........ 2,006 2.4 22,338 6,367Daewoo Electronics Corp. .................................................... 5,717 5.4 13,662 3,984Other ................................................................................... 49,114 73,781

Stocks excluded from fair value valuation (*2):Samsung Life Insurance Co., Ltd. ........................................ 496 2.5 142,122 142,122Dream Hub PFV Co., Ltd..................................................... 4,000 2.0 20,000 20,000Other .................................................................................. 17,501 11,960

494,780 524,025

1,749,679 2,392,854

(Capital contributions)Capital contributions subject to fair value valuation:

Macquarie Korea Opportunities Fund .................................. — 5.8 62,839 68,688Vogo Private Equity Fund .................................................... — 13.8 51,888 49,270Consus Investment No. 3 Private Equity .............................. — 13.3 17,391 13,939Other .................................................................................. 37,542 33,524

Capital contributions excluded from fair value valuation (*2):KAMCO .............................................................................. — 1.4 11,633 11,633Restructuring Fund............................................................... 7.7 40,640 40,640Other ................................................................................... 47,541 46,904

269,474 264,598

W— 2,019,153 W— 2,657,452

(*1) The fair value is determined by independent security appraisal companies due to restricted disposal.

F-25

When the external valuation expert institute evaluated the fair value, they used more than one valuation model thatwas judged the most suitable method among Discounted Cash Flow Model, Imputed Market Value Model,Discounted Free Cash Flow to Equity Model after considering the trait of the valuation objects.

(*2) Equity securities and capital contributions are excluded from fair value valuation since the fair value is not readilyavailable.

(3) The portfolio of securities, other than equity securities accounted for using the equity method and equity securities inforeign currencies, by industry, as of December 31, 2009 and 2008 was as follows (Unit: Korean Won in millions):

Percentage (%)

2009 2008 2009 2008

(Trading securities)

Public service ................................................ W— 3,061,526 W— 2,420,764 36.2 35.3

Financial services .......................................... 4,124,211 3,585,028 48.7 52.3

Manufacturing .............................................. 376,616 310,487 4.4 4.5

Construction .................................................. 23,338 81,661 0.3 1.2

Wholesale and retail ...................................... 79,887 16,170 0.9 0.3

Other ............................................................. 803,174 437,623 9.5 6.4

8,468,752 6,851,733 100.0 100.0

(Available-for-sale securities)

Public service ................................................ 4,069,775 6,270,646 42.7 46.1


Manufacturing .............................................. 1,101,842 878,910 11.5 6.5

Construction .................................................. 580,407 941,861 6.1 6.9

Wholesale and retail ...................................... 122,634 202,668 1.3 1.5

Other ............................................................. 438,067 537,056 4.6 3.9

9,541,739 13,604,621 100.0 100.0

(Held-to-maturity securities)

Public service ................................................ 11,306,576 5,007,036 90.3 81.2


Other ............................................................. 137,310 59,855 1.1 1.0

12,524,770 6,165,819 100.0 100.0

W— 30,535,261 W— 26,622,173

F-26

(4) The portfolio of securities, other than equity securities accounted for using the equity method, and foreign currencydenominated securities, by type, as of December 31, 2009 and 2008 was as follows (Unit: Korean Won in millions):

Percentage (%)

2009 2008 2009 2008

(Trading securities)

Fixed rate bonds ............................................ W— 4,113,658 W— 2,068,228 48.6 30.2

Floating rate notes ......................................... — 19,772 — 0.2

Equity securities ............................................ 229,172 230,777 2.7 3.4

Beneficiary certificates .................................. 420,967 189,469 5.0 2.8

Other ............................................................. 3,704,955 4,343,487 43.7 63.4

8,468,752 6,851,733 100.0 100.0


Fixed rate bonds ............................................ 4,987,096 8,178,567 55.6 64.7

Floating rate notes ......................................... — 29,620 — 0.2

Equity securities ............................................ 2,229,845 2,392,854 24.9 18.9

Capital contributions ...................................... 255,400 264,598 2.8 2.1

Beneficiary certificates .................................. 1,501,117 1,778,582 16.7 14.1

8,973,458 12,644,221 100.0 100.0


Fixed rate bonds ............................................ 12,004,396 5,982,347 97.4 100.0

Floating rate notes ......................................... 322,887 — 2.6 —

12,327,283 5,982,347 100.0 100.0

W— 29,769,493 W— 25,478,301

(5) The portfolio of corporate bonds other than trading securities, by main issuers, as of December 31, 2009 and 2008 wasas follows (Unit: Korean Won in millions):

2009 2008


KDIC................................................................................................................ W— 71,007 W— 30,670

CJ 4th SPC ....................................................................................................... 40,450 40,169

Hyundai Motor Company .................................................................................. 40,177 38,388

SH Corporation................................................................................................. 20,395 20,489

Kia Motors ....................................................................................................... 20,181 19,482

Korea Expressway Corporation ......................................................................... 20,087 —

Korea Railroad ................................................................................................. 20,066 30,032

Kyungki City Public Corporation ...................................................................... 19,878 —

Korea Coal Corporation .................................................................................... 19,851 —

KAMCO ........................................................................................................... 10,389 10,550

Hanjin Heavy Industries & Construction Co., Ltd. ............................................ 10,033 —

Korea Electric Power Corporation ..................................................................... — 103,125

Korea East-West Power Co., Ltd. ...................................................................... — 19,809

Woori SME 10th ABS Co., Ltd. ........................................................................ — 10,014

LG Factoring 1st ABS Specialty Co., Ltd. ........................................................ — 8,000


Korea Housing Finance Corporation.................................................................. 322,888 —

KDIC................................................................................................................ 149,993 149,585

Korea Land & Housing Corporation .................................................................. 111,224 —

SH Corporation................................................................................................. 30,000 —

F-27

(6) The significant assets and liabilities of private beneficiary certificates and trust wrap accounts as of December 31, 2009and 2008 were as follows (Unit: Korean Won in millions):

(2009)

WooriFrontier

AlphaQuantPrivate

SecuritiesFund 2

WooriFrontier

AlphaQuantPrivate

SecuritiesFund 3

WooriPartnerPlus

PrivateSecurities

Fund 3

WooriPartnerPlus

PrivateSecurities

Fund 4 Others Total

Assets

Due from banks ................ W— 3,732 W— 50,000 W— 479 W— 400,000 W— 130,178 W— 584,389

Securities .......................... 38,068 — 76,893 — 487,006 601,967

Call loans ......................... 8,500 — 22,500 — 22,868 53,868

Bonds purchased underresale agreements ......... — — — — 11,100 11,100

Other assets ...................... 2,733 — 89 — 6,732 9,554

Derivative assets ............... — — — — 1,211 1,211

53,033 50,000 99,961 400,000 659,095 1,262,089

Liabilities

Bonds sold underrepurchase agreements .. — — — — 102,000 102,000

Other liabilities................. 1,889 — 4 — 9,737 11,630

1,889 — 4 — 111,737 113,630

Net assets ......................... W— 51,144 W— 50,000 W— 99,957 W— 400,000 W— 547,358 W— 1,148,459

(2008)

WooriPartnerPlus

PrivateBond Fund

16

WooriPartnerPlus

PrivateBond Fund

17

Yuri WBPrivateMixed

InvestmentTrust

HanwhaBoomerang

PrivateBond 132 Others Total

Assets

Due from banks ................ W— 54,618 W— 63,597 W— 88,011 W— 981 W— 80,154 W— 287,361

Securities .......................... 262,267 158,996 2,542 50,687 113,058 587,550

Call loans ......................... 4,281 4,778 5,600 — 19,550 34,209

Bonds purchased underresale agreements ......... — — — — 14,180 14,180

Other assets ...................... 7,959 6,358 4,533 714 4,513 24,077

329,125 233,729 100,686 52,382 231,455 947,377

Liabilities

Bonds sold underrepurchase agreements .. 16,000 25,000 — — — 41,000

Other liabilities................. 144 63 14 39 140 400

16,144 25,063 14 39 140 41,400

Net assets ......................... W— 312,981 W— 208,666 W— 100,672 W— 52,343 W— 231,315 W— 905,977

F-28

(7) Structured notes with embedded derivatives as of December 31, 2009 were as follows (Unit: Korean Won in millions):

Face value Carrying value Potential Risk

Structured notes relating to stock:Convertible bonds ........................................ W— 10,194 W— — Decrease in related stock price

Structured notes relating to credit risk (*): ......Synthetic CDO ............................................. 249,306 81,218 Credit risk of underlying assetsOther CDOs ................................................. 255,017 22,474 Credit risk of underlying assets

W— 514,517 W— 103,692

Structured notes with embedded derivatives as of December 31, 2008 were as follows (Unit: Korean Won in millions):

Face value Carrying value Potential Risk

Structured notes relating to stock:Convertible bonds ........................................ W— 10,778 W— — Decrease in related stock price

Bonds with warrant .......................................... 2,054 50 Decrease in related stock priceStructured notes relating to credit risk (*): .Synthetic CDO ............................................. 382,934 37,638 Credit risk of underlying assetsOther CDOs ................................................. 837,868 70,363 Credit risk of underlying assets

W— 1,233,634 W— 108,051

(*) Please see Note 4-(13)

(8) Securities in foreign currencies other than equity securities accounted for using the equity method as of December 31,2009 and 2008 were as follows (Unit: Korean Won in millions):

2009 2008

Equity securities ................................................................................................... W— 216,389 W— 276,094

Debt securities ...................................................................................................... 765,767 1,143,872

W— 982,156 W— 1,419,966

1) The portfolio of equity securities in foreign currencies as of December 31, 2009 and 2008 was as follows (Unit:Korean Won in millions):

(2009)Percentage of

ownership (%)Acquisition

costNet asset or

fair value Book value

Capital contributions:

AREIF ............................................. 4.0 W— 32,160 W— 24,313 W— 24,313

MMF III FCPR ................................ 6.4 20,911 23,604 23,604

MSREF V ........................................ 0.6 25,150 9,458 9,458

MSREF VI....................................... 0.3 32,151 4,602 4,602

MSJCPF .......................................... 15.0 33,717 27,331 27,331

Creed Real Estate Partners ............... 5.4 36,542 31,895 31,895

ARES Fund...................................... 2.0 29,190 17,215 17,215

North Asia Strategy Holdings Ltd. ... 5.8 18,694 17,243 17,243

Squadron Asia Pacific Fund ............. 6.7 13,977 13,257 13,257

DLJIP III Fund ................................ 3.0 9,695 4,868 4,868

Global Infrastructure Partners .......... 0.5 22,280 22,169 22,169

Other ............................................... 25,926 20,434 20,434

W— 300,393 W— 216,389 W— 216,389

F-29

(2008)Percentage of

ownership (%)Acquisition

costNet asset or

fair value Book value

Capital contributions:

AREIF ............................................. 4.0 W— 34,118 W— 33,947 W— 33,947

MMF III FCPR ................................ 6.4 22,155 27,178 27,178

MSREF V ........................................ 0.6 42,564 36,055 36,055

MSJCPF .......................................... 15.0 37,720 40,062 40,062

Creed Real Estate Partners ............... 5.4 40,334 39,360 39,360

ARES Fund...................................... 2.0 31,437 10,233 10,233

Efficient Diversified Fund ............... 7.7 12,575 13,204 13,204

North Star Real Estate Fund ............ 17.1 24,331 — —

NASHL............................................ 9.4 15,109 14,796 14,796

Squadron Asia Pacific Fund ............. 6.6 11,707 11,057 11,057

DLJIP III Fund ................................ 3.0 11,477 10,509 10,509

Global Infrastructure Partners .......... 0.5 12,864 12,864 12,864

Other ............................................... 27,333 26,829 26,829

W— 323,724 W— 276,094 W— 276,094

Beneficiary certificates:

Anchor Stone Fund .......................... W— 30,196 W— — W— —

2) The portfolio of debt securities in foreign currencies by issuer’s country as of December 31, 2009 and 2008 wasas follows (Unit: Korean Won in millions):

Percentage (%)

Countries 2009 2008 2009 2008

Korea................................................... W— 357,824 W— 310,079 46.7 27.1

Cayman................................................ 61,849 108,874 8.1 9.5

U.S.A .................................................. 115,532 185,651 15.1 16.2

Netherlands .......................................... 20,826 43,109 2.7 3.8

Hong Kong .......................................... 42,793 — 5.6 —

Ireland ................................................. 15,620 24,013 2.0 2.1

China ................................................... 8,132 143,580 1.1 12.6

Taiwan ................................................. 8,091 — 1.1 —

Singapore............................................. 7,113 — 0.9 —

Bangladesh .......................................... 4,885 — 0.6 —

Thailand .............................................. 3,511 — 0.5 —

Jersey ................................................. 1,211 4,779 0.2 0.4

UAE .................................................... — 14,267 — 1.2

Luxemburg........................................... — 62,110 — 5.4

Malaysia .............................................. — 43,650 — 3.8

U.K...................................................... — 16,382 — 1.4

Indonesia ............................................. 118,380 — 15.4 —

Other ................................................... — 187,378 — 16.5

W— 765,767 W— 1,143,872 100.0 100.0

F-30

3) The portfolio of debt securities in foreign currencies, by foreign currency and type, as of December 31, 2009 and2008 was as follows (Unit: Korean Won in millions):

Percentage (%)

Currencies Type 2009 2008 2009 2008

U.S. dollars .............. Fixed rate bonds W— 371,611 W— 510,468 48.6 44.6

Floating rate notes 335,556 460,125 43.8 40.2

Subordinated notes — 24,706 — 2.2

Other 7,206 37,399 0.9 3.3

714,373 1,032,698 93.3 90.3

EUR ......................... Fixed rate bonds — 59,196 — 5.2

Floating rate notes 49,732 50,228 6.5 4.4

49,732 109,424 6.5 9.6

SGD ......................... Other 1,662 1,750 0.2 0.1

W— 765,767 W— 1,143,872 100.0 100.0

(9) Securities lent as of December 31, 2009 and 2008 were as follows (Unit: Korean Won in millions):

Account 2009 2008 Lent to

Government bonds ............................................ W— 12,497 W— 12,497Hanshin Construction Co., Ltd.,Doosan Industrial Development

Equity securities ............................................... 11,261 13,235Korea Securities Depository andother

W— 23,758 W— 25,732

(10) The main securities with restriction on disposal as of December 31, 2009 were as follows (Unit: Korean Won in millions):

Book value Restriction

Hynix Semiconductor Inc. ........................................ W— 771,061 Until creditors’ approval of the disposal

Hyundai Engineering & Construction Co., Ltd. ........ 541,463 Until creditors’ approval of the disposal

Daewoo International Corporation ............................ 54,775 Until creditors’ approval of the disposal

Pantech Co., Ltd. ..................................................... 43,467 Until December 31, 2011

Daewoo Electronics Corp. ........................................ 4,465 Until the completion of workout

Ssangyong Engineering & Construction Co., Ltd. ..... 3,220 Until creditors’ approval of the disposal

F-31

(11) The portfolio of equity securities accounted for using the equity method as of December 31, 2009 and 2008 was asfollows (Unit: Korean Won in millions, shares in thousands):

(2009) Shares

Percentageof

ownership(%)

Acquisitioncost

Balance asof Jan. 1,

2009

Gain(loss) onvaluationusing the

equitymethod

Otherchanges

Balance asof Dec. 31,

2009Net asset

value

BC Card .............................................. 1,217 27.7 W— 10,876 W— 137,400 W— 14,918 W— 24,158 W— 176,476 W— 176,476

Korea BTL Infra Fund .......................... 55,152 100.0 278,500 217,097 13,503 49,432 280,031 280,031

Korea Credit Bureau Co., Ltd. (*1) ....... 144 7.2 3,600 2,168 47 — 2,215 2,215

KFS ...................................................... 184 15.3 758 3,006 384 (53) 3,337 3,337

Woori SME 1st ABS Co., Ltd. (*3) ....... 83 5.0 415 409 — (3) 406 406

Woori SME Asset SecuritizationSpecialty Co., Ltd. (*3) (*5) ............ 55 5.0 273 188 (3) (185) — —

Woori Service Network (*4)Co., Ltd.(*4).................................................. 5 4.9 24 71 41 (4) 108 108

Woori Private Equity Fund.................... 71 29.0 71,124 54,673 2,847 6,845 64,365 64,365

W— 365,570 W— 415,012 W— 31,737 W— 80,189 W— 526,938 W— 526,938

(2008) Shares

Percentageof

ownership(%)

Acquisitioncost

Balance asof Jan. 1,

2008

Gain(loss) onvaluationusing the

equitymethod

Otherchanges

Balance asof Dec. 31,

2008Net asset

value

BC Card ............................................... 1,217 27.7 W— 10,876 W— 66,215 W— 48,124 W— 23,061 W— 137,400 W— 137,400

Korea BTL Infra Fund .......................... 42,602 100.0 215,000 124,089 9,778 83,230 217,097 217,097

Korea Credit Bureau Co., Ltd. (*1) ....... 144 7.2 3,600 2,271 (103) — 2,168 2,168

KFS ...................................................... 184 15.3 758 3,013 78 (85) 3,006 3,006

Woori Marlin 2nd ABS Co., Ltd. (*2) ... 1 5.0 6 306 709 (1,015) — —

Woori SME 1st ABS Co., Ltd. (*3) ....... 83 5.0 415 333 105 (29) 409 409

Woori SME Asset SecuritizationSpecialty Co., Ltd. (*3).................... 55 5.0 273 226 19 (57) 188 188

Woori Service Networks Co., Ltd. (*4) . 5 4.9 24 82 (6) (5) 71 71

Woori Private Equity Fund .................. 67 29.0 67,175 61,066 (3,838) (2,555) 54,673 54,673

W— 298,127 W— 257,601 W— 54,866 W— 102,545 W— 415,012 W— 415,012

(*1) The Bank has significant influence in designation of managerial personnel who may participate in financial or operatingdecision processes.

(*2) On December 30, 2008, Woori Marlin 2nd ABS Co., Ltd. completed its liquidation process.

(*3) The Bank can represent on the board of directors or equivalent governing body of the investee.

(*4) Material transactions exist between the Bank and the investee.

(*5) On December 23, 2009, Woori SME Asset Securitization Specialty Co., Ltd. completed its liquidation process.

F-32

The other changes in equity securities accounted for using the equity method for the years ended December 31, 2009 and2008 were as follows (Unit: Korean Won in millions):

(2009)Purchases(disposals)

Othercomprehensive

incomeDividendsreceived Other Total

Domestic:BC Card ......................................................... W— — W— 27,809 W— (3,650) W— (1) W— 24,158Korea BTL Infra Fund .................................... 63,500 — (14,069) — 49,431KFS ................................................................ — 2 (55) — (53)Woori SME 1st ABS Co., Ltd. ........................ — — (3) — (3)Woori SME Asset Securitization Specialty

Co., Ltd. ..................................................... (173) 4 (15) (1) (185)Woori Service Networks Co., Ltd.................... — — (5) 1 (4)Woori Private Equity Fund.............................. 3,949 3,527 (631) — 6,845

W— 67,276 W— 31,342 W— (18,428) W— (1) W— 80,189

(2008)Purchases(disposals)

Accumulatedother

comprehensiveincome (loss)

Dividendsreceived Other Total

BC Card ......................................................... W— — W— 24,278 W— (1,217) W— — W— 23,061Korea BTL Infra Fund .................................... 93,000 — (9,770) — 83,230KFS ................................................................ — — (83) (2) (85)Woori Marlin 2nd ABS Co., Ltd. .................... (274) — (654) (87) (1,015)Woori SME 1st ABS Co., Ltd. ....................... — — (29) — (29)Woori SME Asset Securitization Specialty

Co., Ltd. ..................................................... — — (57) — (57)Woori Service Networks Co., Ltd.................... — — (5) — (5)Woori Private Equity Fund.............................. 6,222 (2,353) (6,424) — (2,555)

W— 98,948 W— 21,925 W— (18,239) W— (89) W— 102,545

The table below presents the fiscal year-end of equity method investees and the dates of the statements of financialposition of these companies used in preparing the Bank’s financial statements as of December 31, 2009 and 2008.Summary of financial information of investees that are accounted for using the equity method as of and for the year endedDecember 31, 2009 was as follows (Unit: Korean Won in millions):

Summarized financial information ofinvestees

Fiscalyear-end


financial position

Investees (*) Assets Liabilities

Sales(operating

income)

Netincome(loss) 2009 2008

BC Card ............................................ W— 1,996,075 W— 1,357,928 W— 3,161,817 W— 58,729 December 31 Dec. 31 Dec. 31

Korea BTL Infra Fund ........................ 280,146 115 14,619 13,502 March, June,

September,

December

Dec. 31 Dec. 31

Korea Credit Bureau Co., Ltd. ............ 36,807 6,040 27,353 648 December 31 Dec. 31 Dec. 31

KFS.................................................... 25,372 3,594 41,499 3,324 December 31 Dec. 31 Dec. 31

Woori SME 1st ABS Co., Ltd. ............ 8,129 12 — (61) December 31 Dec. 31 Dec. 31

Woori SME Asset Securitization

Specialty Co., Ltd. .........................

4,896 1,403 320 78 December 31 Dec. 31 Dec. 31

Woori Service Networks Co., Ltd. ...... 3,153 1,236 8,553 1,200 December 31 Nov. 30 Dec. 31

Woori Private Equity Fund ................. 225,167 2,860 1,236 9,799 December 31 Dec. 31 Dec. 31

(*) The Bank used non-audited financial statements of investees as of December 31, 2009 for applying the equitymethod, and the Bank performed additional review procedures for such financial statements. In case of Woori SMEAsset Securitization Specialty Co., Ltd., the Bank used financial statements as of October 20, 2009, the date whenthe price of the remaining assets is finalized.

F-33

(12) Other trading securities

As of December 31, 2009, other trading securities included W— 3,622,405 million of commercial papers issued by HDProject Co., Ltd. and Yangjae Complex Distribution Co., Ltd. and W— 26,064 million of trust wrap accounts.

(13) Debt securities issued by foreign governments and asset-backed debt securities and other as of December 31, 2009 and2008 were as follows (Unit: Korean Won in millions):

2009 2008

Debt securities issued by foreign governments:

Available-for-sale securities in foreign currencies ............................................. W— 4,885 W— 6,836

Held-to-maturity securities in foreign currencies ............................................... 1,662 1,750

6,547 8,586

Asset-backed debt securities and other:

Available-for-sale securities in local currency ................................................... — 58,183

Available-for-sale securities in foreign currencies (*1)...................................... 103,692 108,001

Held-to-maturity securities in local currency (*2) ............................................. 322,888 —

426,580 166,184

W— 433,127 W— 174,770

(*1) The Bank has invested in Collateralized Debt Obligations (“CDOs”), of which the face value amounted to US$432 million (CDO related to mortgage amounted to US$ 70 million and other CDOs amounted to US$ 362 million),and of which the book value amounted to US$ 89 million (CDO related to mortgage amounted to US$ 1 millionand other CDOs amounted to US$ 88 million). The Bank recognized W—19.1 billion of loss on impairment ofavailable-for-sale securities, W—1.5 billion of loss on disposal of available-for-sale securities and W—35 billion ofgain on disposal of available-for-sale securities, which are related to these CDOs, for the year ended December31, 2009. In addition, the Bank recognized W—66.1 billion as gain on valuation of available-for-sale securitiesrecorded in accumulated other comprehensive income, which is related to these CDOs.

(*2) The Bank purchased mortgage-backed securities, issued by Korea Housing Finance Corporation on March 30,2009. The Bank has been collecting the investment amount according to the collection schedule and the collectedamount was W—44.2 billion for the year ended December 31, 2009.

F-34

5. LOANS

(1) Loans as of December 31, 2009 and 2008 were as follows (Unit: Korean Won in millions):

2009 2008

Call loans ............................................................................................................. W— 4,448,368 W— 1,310,075

Domestic banker’s usance ..................................................................................... 3,737,971 4,271,417

Credit card accounts ............................................................................................. 3,689,896 3,878,361

Bills bought in foreign currencies ......................................................................... 4,387,997 4,979,208

Bills bought in local currency ............................................................................... 865,218 1,893,005

Bonds purchased under resale agreements ............................................................. 1,495,923 2,040,731

Loans in local currency......................................................................................... 135,855,032 133,342,253

Loans in foreign currencies ................................................................................... 12,446,064 15,803,338

Factoring receivables ............................................................................................ 46,571 57,093

Advances for customers ........................................................................................ 52,995 114,215

Privately placed bonds .......................................................................................... 2,996,327 3,788,849

Loans for debt-equity swap ................................................................................... 578 52

Other .................................................................................................................... 175,157 260,376

170,198,097 171,738,973

Allowance for possible loan losses........................................................................ (3,404,503) (3,110,965)

Deferred loan origination costs (fees) ................................................................... 11,006 (42,457)

W— 166,804,600 W— 168,585,551

(2) Loans in local currency as of December 31, 2009 and 2008 classified by borrower type were as follows (Unit: KoreanWon in millions):

2009 2008

Loans to enterprises: ............................................................................................

Working capital..................................................................................................... W— 59,371,043 W— 60,935,533

Facilities and equipment ....................................................................................... 15,774,842 13,180,948

75,145,885 74,116,481

Loans to households: ...........................................................................................

General purpose .................................................................................................... 53,655,048 51,992,894

Housing ................................................................................................................ 2,227,410 2,183,232

Other .................................................................................................................... 559,086 505,079

56,441,544 54,681,205

Loans to public sector and other: .........................................................................

Working capital..................................................................................................... 2,105,282 2,566,023

Facilities and equipment ....................................................................................... 774,758 575,019

Inter-bank ............................................................................................................. 1,387,563 1,403,525

4,267,603 4,544,567

W— 135,855,032 W— 133,342,253

(3) Loans to the financial institutions as of December 31, 2009 and 2008 were as follows (Unit: Korean Won in millions):

2009 2008

Central Bank......................................................................................................... W— 990,000 W— 2,040,000

Banks ................................................................................................................... 4,609,005 4,828,654

Credit card & loan companies ............................................................................... 1,809,121 4,151,288

Other .................................................................................................................... 8,315,081 1,041,083

Total ..................................................................................................................... W— 15,723,207 W— 12,061,025

F-35

(4) Loans in local currency, by industry, as of December 31, 2009 and 2008 were as follows (Unit: Korean Won in millions):

2009 2008

Amount % of total Amount % of total

Manufacturing................................................ W— 23,194,696 17.1 W— 23,425,380 17.6Real estate and leasing................................... 18,079,477 13.3 15,539,788 11.6Wholesale and retail ...................................... 9,878,301 7.3 9,022,992 6.8Construction .................................................. 6,587,597 4.8 11,314,153 8.5Lodging and restaurant................................... 2,971,024 2.2 2,844,661 2.1Transportation ................................................ 2,605,160 1.9 2,689,323 2.0Financial industry .......................................... 3,360,661 2.5 1,948,178 1.5Other ............................................................. 12,736,572 9.4 11,876,572 8.9

79,413,488 58.5 78,661,047 59.0Loans to household ........................................ 56,441,544 41.5 54,681,206 41.0

W— 135,855,032 100.0 W— 133,342,253 100.0

(5) Loans and the confirmed acceptances and guarantees (“Confirmed A&G”) in foreign currencies, by country, as ofDecember 31, 2009 and 2008 were as follows (Unit: Korean Won in millions):

(2009)

Country

Loans inforeign

currencies % of totalConfirmed

A&G % of total

Korea ........................................................... 6,155,825 49.5 8,577,007 93.4U.S.A. .......................................................... 1,813,863 14.6 59,438 0.7U.K. ............................................................. 813,856 6.5 64,881 0.7Singapore ..................................................... 782,998 6.3 232,447 2.5Vietnam ........................................................ 723,102 5.8 31,342 0.3Hong Kong ................................................... 618,860 5.0 1,668 0.0Japan ............................................................ 529,725 4.3 40,065 0.4Bahrain ......................................................... 418,192 3.3 50,603 0.6China ............................................................ 278,279 2.2 78,027 0.9Indonesia ....................................................... 200,641 1.6 10,524 0.1Russia ............................................................ 47,689 0.4 — —Bangladesh .................................................... 21,945 0.2 40,831 0.4Other ............................................................. 41,089 0.3 — —

12,446,064 100.0 9,186,833 100.0

(2008)

Country

Loans inforeign

currencies % of totalConfirmed

A&G % of total

Korea ........................................................... W— 8,404,739 53.3 W— 9,658,538 92.5U.S.A. .......................................................... 2,361,932 14.9 28,591 0.3Singapore ..................................................... 1,079,212 6.8 351,885 3.4U.K. ............................................................. 855,086 5.4 41,411 0.4Vietnam ........................................................ 699,150 4.4 39,162 0.4Hong Kong ................................................... 632,141 4.0 4,903 0.0Japan ............................................................ 553,114 3.5 75,946 0.7Bahrain ......................................................... 518,363 3.3 — —China ............................................................ 350,591 2.2 164,901 1.6Bangladesh ................................................... 263,518 1.7 26,693 0.3Russia ............................................................ 48,048 0.3 21,575 0.2Indonesia ....................................................... — — 22,942 0.2Other ............................................................. 37,444 0.2 — —

W— 15,803,338 100.0 W— 10,436,547 100.0

F-36

(6) The following tables show the details of the loans under the asset quality classification guideline as of December 31,2009 and 2008 (Unit: Korean Won in billions):

(2009)Account Normal Precautionary Substandard Doubtful Loss Total

Domestic banker’s usance ... W— 3,666 W— 24 W— 48 W— — W— — W— 3,738

Credit card accounts ........... 3,579 63 2 40 6 3,690

Bills bought in foreigncurrencies (*) ................. 4,309 4 74 1 — 4,388

Bills bought in localcurrency ......................... 657 116 92 — — 865

Loans in local currency ...... 128,735 4,066 1,155 221 291 134,468

Loans in foreigncurrencies....................... 11,053 667 284 40 8 12,052

Factoring receivables ......... 47 — — — — 47

Advances for customers ...... — 1 24 16 12 53

Loans for debt-equityswap .............................. — — — 1 — 1

Privately placed bonds........ 2,640 72 279 1 4 2,996

Other .................................. 123 13 39 — — 175

Suspense receivable forcredit ............................. — — — 2 4 6

W— 154,809 W— 5,026 W— 1,997 W— 322 W— 325 W— 162,479


Domestic banker’s usance ... W— 4,227 W— 28 W— 16 W— — W— 1 W— 4,272

Credit card accounts ........... 3,744 82 1 44 8 3,879

Bills bought in foreigncurrencies (*) ................. 4,922 50 7 4 2 4,985

Bills bought in localcurrency ......................... 1,893 — — — — 1,893

Loans in local currency ...... 127,205 3,103 818 421 392 131,939

Loans in foreigncurrencies....................... 15,310 235 24 7 15 15,591


Advances for customers ...... 10 23 15 49 17 114

Privately placed bonds........ 3,716 30 7 35 — 3,788

Other .................................. 150 18 30 62 1 261

Suspense receivable forcredit ............................. 1 — — 2 5 8

W— 161,235 W— 3,569 W— 918 W— 624 W— 441 W— 166,787

(*) Including accounts receivable related to bills bought in foreign currencies as of December 31, 2009 and 2008.

F-37

Reconciliations of the loans subject to loss provisions with total loans were as follows (Unit: Korean Won in billions):

2009 2008

Total loans ............................................................................................................ W— 170,198 W— 171,739

Less: Not subject to loss provisions .....................................................................

Inter-bank loans ............................................................................................... (1,781) (1,616)

Bonds purchased under resale agreements ........................................................ (1,496) (2,040)

Call loans ......................................................................................................... (4,448) (1,310)

Add: Subject to loss provisions for assets other than loans ..................................

Suspense receivable as credit ........................................................................... 6 8

Receivables related to non-performing bills bought ......................................... — 6

The loans subject to loss provisions ...................................................................... W— 162,479 W— 166,787

(7) Allowances for possible loan losses under the asset quality classification as of December 31, 2009 and 2008 were asfollows (Unit: Korean Won in billions):


Domestic banker’s usance ... W— 32 W— 2 W— 15 W— — W— — W— 49

Credit card accounts ........... 54 10 — 24 6 94

Bills bought in foreigncurrencies (*) ................ 37 — 15 1 — 53

Bills bought in localcurrency ......................... 8 11 19 — — 38

Loans in local currency ...... 1,207 548 300 115 291 2,461

Loans in foreigncurrencies....................... 103 75 53 17 8 256

Factoring receivables ......... — — — — — —

Advances for customers ...... — — 5 8 12 25

Privately placed bonds........ 23 6 75 1 4 109

Loans for debt-equityswap .............................. — — — — — —

Other .................................. 1 2 8 — — 11


W— 1,465 W— 654 W— 490 W— 167 W— 324 3,100

Accounts receivable andother .............................. 305

W— 3,405

F-38


Domestic banker’s usance ... W— 36 W— 3 W— 8 W— — W— 1 W— 48

Credit card accounts ........... 56 12 — 26 8 102

Bills bought in foreigncurrencies(*) ................. 43 4 1 2 2 52

Bills bought in localcurrency ......................... 19 — — — — 19

Loans in local currency ...... 1,179 387 201 242 392 2,401

Loans in foreigncurrencies....................... 137 32 3 5 15 192


Advances for customers ...... — 2 3 25 17 47

Privately placed bonds........ 37 6 2 18 — 63

Other .................................. 2 1 6 31 — 40


W— 1,510 W— 447 W— 224 W— 350 W— 440 2,971

Accounts receivable andother .............................. 140

W— 3,111

(*) Including accounts receivable related to bills bought in foreign currencies as of December 31, 2009 and 2008.

(8) The allowance for over-the-counter market derivative assets related to the default risk from the counterparts as ofDecember 31, 2009 and 2008 was W—74.4 billion and W—66.3 billion, respectively.

(9) Changes in the allowance for possible loan losses for the years ended December 31, 2009 and 2008 were as follows (Unit:Korean Won in billions).

2009 2008

Beginning balance................................................................................................. W— 3,111 W— 1,996

Provision for possible loan losses ......................................................................... 1,785 1,394

Collection of previously written-off loans ............................................................. 98 94

Write-off ............................................................................................................... (1,301) (389)

Sales of loan ......................................................................................................... (329) (39)

Other .................................................................................................................... 41 55

Ending balance ..................................................................................................... W— 3,405 W— 3,111

(10) The allowance ratio for possible loan losses against the loans subject to loss provisions as of December 31, 2009, 2008and 2007 was as follows (Unit: Korean Won in billions):

Loans subjectto loss

provision

Allowance forpossible loan

losses Ratio (%)

December 31, 2009.................................................................... W— 162,479 W— 3,405 2.1

December 31, 2008.................................................................... W— 166,787 W— 3,111 1.9

December 31, 2007.................................................................... W— 141,480 W— 1,996 1.4

F-39

(11) Changes in deferred loan origination fees (costs) for the year ended December 31, 2009 were as follows (Unit: Koreanwon in billions):

Balance atJan. 1, 2009 Increase Decrease

Balance atDec. 31, 2009

Deferred loan origination fees ........................ W— (126) W— (74) W— (109) W— (91)

Deferred loan origination costs ...................... 84 55 37 102

W— (42) W— 11

6. DISPOSAL OF LOANS

Material loans sold in 2009 were as follows (Unit: Korean Won in billions):

Buyer

Nominalamount ofsold loans Allowances

Gain (loss) ondisposal of

loans

Woori F&I 10th Asset Securitization Specialty Co., Ltd. ........... W— 159 W— 46 W— (2)

Woori SB 12th Asset Securitization Specialty Co., Ltd. ............. 73 24 3

Woori Tomato 1st Asset Securitization Specialty Co., Ltd.......... 67 9 (9)

Woori HB 1st Asset Securitization Specialty Co., Ltd................ 38 27 (11)

Woori HB 2nd Asset Securitization Specialty Co., Ltd............... 16 9 (4)

Woori EA 1st Asset Securitization Specialty Co., Ltd. ............... 265 45 9

Woori Piastone Bridge Asset Securitization Specialty Co., Ltd. . 56 4 (10)

Ashes to Ashes Securitization Specialty Co., Ltd. ...................... 64 16 15

Consumer Credit Assistant Fund Co., Ltd. ................................. 10 10 1

KAMCO .................................................................................... 683 88 (146)

Korea Housing Finance Corporation .......................................... 367 3 3

PPI ABS Ltd. ............................................................................ 115 28 5

KAMCO 1st JV Securitization Specialty Co., Ltd. ..................... 192 20 (59)

7. RESTRUCTURED LOANS

(1) Loans restructuring during the year ended December 31, 2009 were as follows (Unit: Korean Won in millions):

TypeInitial balance

of loan

Reduction ofprincipal(interest)

Debt to equityswap

Othercondition

change

Workout ......................................................... W— 1,104,227 W— — W— 30,368 W— 1,073,859

Court receivership.......................................... 211,768 28,292 60,676 122,800

W— 1,315,995 W— 28,292 W— 91,044 W— 1,196,659

(2) The changes in present value discount related to loans restructuring for the year ended December 31, 2009 were asfollows (Unit: Korean Won in millions):

Initialbalance of

loanBalance as ofJan. 1, 2009 Increase Decrease

Balance as ofDec. 31, 2009

Workout .......................................... W— 872,066 W— 365 W— 32,105 W— 6,094 W— 26,376

Court receivership........................... 94,742 — 13,296 1,812 11,484

W— 966,808 W— 365 W— 45,401 W— 7,906 W— 37,860

(*1) Represent loan balance with present value discount.

(*2) Included in allowances for possible loan losses.

F-40

8. TANGIBLE ASSETS

(1) Tangible assets as of December 31, 2009 and 2008 consisted of the following (Unit: Korean Won in millions):

(2009)Acquisition

costAccumulateddepreciation

Accumulatedimpairment

lossCarryingamount

Land .............................................................. W— 1,012,003 W— — W— 4,757 W— 1,007,246

Buildings ....................................................... 1,052,580 272,145 1,015 779,420

Leasehold improvements ................................ 241,846 194,345 — 47,501

Equipment and furniture ................................ 351,957 277,694 — 74,263

W— 2,658,386 W— 744,184 W— 5,772 W— 1,908,430

(2008)Acquisition

costAccumulateddepreciation

Accumulatedimpairment

lossCarryingamount

Land .............................................................. W— 1,058,673 W— — W— 6,978 W— 1,051,695

Buildings ....................................................... 875,551 256,785 1,633 617,133

Leasehold improvements ................................ 245,723 182,249 — 63,474

Equipment and furniture ................................ 333,364 264,919 — 68,445

Construction in progress ................................ 112,264 — — 112,264

W— 2,625,575 W— 703,953 W— 8,611 W— 1,913,011

(2) The published value of land pursuant to the Laws on Disclosure of Land Price and Valuation of Land was W—1,246,195million and W—1,408,378 million as of December 31, 2009 and 2008, respectively.

(3) Changes in tangible assets in 2009 and 2008 were as follows (Unit: Korean Won in millions):

(2009)

Balance atJan. 1,

2009 Purchases Disposals Transfers Depreciation Impairment Other

Balance atDec. 31,

2009

Land ........................ W— 1,051,695 W— 487 W— 61,845 W— 16,975 W— — W— — W— (66) W— 1,007,246

Buildings ................. 617,133 5,782 13,225 195,775 25,871 — (174) 779,420

Leaseholdimprovements ...... 63,474 11,788 1,634 — 25,300 — (827) 47,501

Equipment andfurniture.............. 68,445 18,929 92 21,570 34,270 — (319) 74,263

Construction inprogress .............. 112,264 129,293 — (234,320) — — (7,237) —

W— 1,913,011 W— 166,279 W— 76,796 W— — W— 85,441 W— — W— (8,623) W— 1,908,430

(2008)

Balance atJan. 1,

2008 Purchases Disposals Transfers Depreciation Impairment Other

Balance atDec. 31,

2008

Land ........................ W— 1,038,837 W— 6,991 W— 1,406 W— 11,266 W— — W— 4,474 W— 481 W— 1,051,695

Buildings ................. 594,785 12,830 1,282 35,850 25,769 285 1,004 617,133

Leaseholdimprovements ...... 60,863 43,691 236 — 29,068 — (11,776) 63,474

Equipment andfurniture.............. 61,328 30,615 1,931 — 38,681 — 17,114 68,445

Construction inprogress .............. 46,142 115,269 — (47,116) — — (2,031) 112,264

W— 1,801,955 W— 209,396 W— 4,855 W— — W— 93,518 W— 4,759 W— 4,792 W— 1,913,011

F-41

9. OTHER ASSETS

(1) Other assets as of December 31, 2009 and 2008 consisted of the following (Unit: Korean Won in millions):

2009 2008

Intangible assets .................................................................................................. W— 58,876 W— 100,812

Non-business use property .................................................................................... 3,908 2,064

Guarantee deposits ................................................................................................ 980,132 1,043,517

Accounts receivable-other ..................................................................................... 2,059,911 2,700,772

Accrued income .................................................................................................... 716,610 794,421

Prepaid expenses................................................................................................... 130,280 74,355

Deferred income tax assets (Note 21).................................................................... 142,807 603,452

CMA..................................................................................................................... 1,670,294 2,769,446

Derivatives (Note 26)............................................................................................ 4,093,331 11,037,202

Domestic exchange settlements debitsDomestic exchange settlements debits ......... 439,777 421,297

Sundry assets ........................................................................................................ 85,996 151,388

Less: present value discounts ................................................................................ (8,015) (10,987)

W— 10,373,907 W— 19,687,739

(2) Intangible assets as of December 31, 2009 and 2008 consisted of the following (Unit: Korean Won in millions):

(2009)Acquisition

costAccumulatedamortization

Carryingamount

Goodwill ................................................................................... W— 21,884 W— 21,670 W— 214

Software .................................................................................... 357 248 109

Industrial property right ............................................................ 195 101 94

Development costs ................................................................... 126,768 121,229 5,539

Other intangible assets .............................................................. 195,482 142,562 52,920

W— 344,686 W— 285,810 W— 58,876

(2008)Acquisition

costAccumulatedamortization

Carryingamount

Goodwill ................................................................................... W— 27,054 W— 26,572 W— 482

Software .................................................................................... 354 195 159

Industrial property right ............................................................ 169 108 61

Development costs ................................................................... 133,551 109,381 24,170

Other intangible assets .............................................................. 221,656 145,716 75,940

W— 382,784 W— 281,972 W— 100,812

(3) Changes in intangible assets in 2009 and 2008 were as follows (Unit: Korean Won in millions):

(2009)Balance at

Jan. 1, 2009 Purchases Amortization OtherBalance at

Dec. 31, 2009

Goodwill ......................................... W— 482 W— - W— 233 W— 35 W— 214

Software ......................................... 159 3 53 — 109

Industrial property right .................. 61 61 28 — 94

Development costs ......................... 24,170 1,312 19,923 20 5,539

Other intangible assets .................... 75,940 15,197 38,017 200 52,920

W— 100,812 W— 16,573 W— 58,254 W— 255 W— 58,876

F-42

(2008)Balance at

Jan. 1, 2008 Purchases Amortization OtherBalance at

Dec. 31, 2008

Goodwill ......................................... W— 3,113 W— - W— 3,691 W— 1,060 W— 482

Software ......................................... 82 129 52 — 159

Industrial property right .................. 39 45 23 — 61

Development costs ......................... 47,819 1,628 25,307 30 24,170

Other intangible assets .................... 114,696 3,543 42,833 534 75,940

W— 165,749 W— 5,345 W— 71,906 W— 1,624 W— 100,812

(4) Sundry assets included in other assets as of December 31, 2009 and 2008 consisted of (Unit: Korean Won in millions):

2009 2008

Suspense receivables ............................................................................................. W— 53,080 W— 106,893

Accounts receivable for disposition of properties .................................................. 1,281 2,562

Deposit money to court ......................................................................................... 13,600 33,806

Stationary and office supplies ............................................................................... 4,236 4,606

Income tax receivables .......................................................................................... 12,364 2,038

Other .................................................................................................................... 1,435 1,483

W— 85,996 W— 151,388

10. INSURED ASSETS

Assets insured as of December 31, 2009 and 2008 were as follows (Unit: Korean Won in millions):

2009 2008

Type of insurance Insured assetsNet book

valueInsuredamount

Net bookvalue

Insuredamount

Property composite ................... Buildings W— 777,837 W— 821,649 W— 615,735 W— 630,823

Equipment and furniture 71,132 51,689 63,968 46,897

Fire ..........................................Tangible assets in overseas

branches 1,062 4,956 1,201 6,762

Equipment and furniture 894 5,378 1,743 8,774

Leasehold improvements 3,187 12,240 5,816 15,058

W— 854,112 W— 895,912 W— 688,463 W— 708,314

In addition, the Bank also had theft and casualty insurance coverage on leasehold properties.

F-43

11. COLLATERALIZED ASSETS

Assets provided to others as collateral as of December 31, 2009 and 2008 were as follows (Unit: Korean Won inmillions):

Secured partiesCollateralized

assets 2009 2008 Purpose

BOK ......................................... Securities W— 3,832,400 W— 5,882,400 Limit on total loan exposure,settlement risk and other

Korea Securities Depository...... Securities 54,755 1,060,000 Collateral for bond sold underrepurchase agreements andother

Deutsche Bank and other .......... Due from banksand securities

3,159,139 3,804,698 Collateral for credit derivativeand other

Samsung Securities and other ... Due from banksand securities

242,304 320,164 Margin account for futures

W— 7,288,598 W— 11,067,262

12. DEPOSITS

(1) Deposits as of December 31, 2009 and 2008 consisted of the following (Unit: Korean Won in millions):

2009 2008

Demand deposits:

Demand deposits in local currency.................................................................... W— 7,492,277 W— 6,979,666

Demand deposits in foreign currencies .............................................................. 4,956,625 3,997,525

Saving deposits:

Saving deposits in local currency...................................................................... 118,085,894 105,337,461

Mutual installment ............................................................................................ 144,417 187,821

Saving deposits in foreign currencies ................................................................ 4,798,865 5,137,651

Certificates of deposits ......................................................................................... 10,006,389 14,688,751

Notes payable deposits .......................................................................................... 3,024,917 3,387,402

CMA deposits ....................................................................................................... 1,554,060 1,992,448

Monetary trust ...................................................................................................... 1,767,089 1,799,846

W— 151,830,533 W— 143,508,571

(2) Demand deposits as of December 31, 2009 and 2008 consisted of the following (Unit: Korean Won in millions):

2009 2008

Demand deposits in local currency: .................. Checking deposits W— 1,724,665 W— 2,231,437Household checking deposits 32,221 27,552Passbook deposits 1,629,281 1,711,562Temporary deposits 3,373,751 2,510,811Treasury deposits and other 732,359 498,304

W— 7,492,277 W— 6,979,666

F-44

2009 2008

U.S. Dollarsor their

equivalent (*)Korean Won

equivalent



equivalent

Demand deposits in foreign currencies:

Current deposits......................................... $1,042,189 W— 1,216,860 $1,019,198 W— 1,281,641

Passbook deposits ...................................... 3,019,699 3,525,801 2,021,413 2,541,927

Temporary deposits .................................... 127,573 148,954 97,843 123,038

Other ......................................................... 55,679 65,010 40,492 50,919

$4,245,140 W— 4,956,625 $3,178,946 W— 3,997,525

(*) Non-U.S. Dollar currencies were translated into U.S. Dollar equivalents using the cross rates at the dates of thestatements of financial position.

(3) Saving deposits as of December 31, 2009 and 2008 consisted of the following (Unit: Korean Won in millions, U.S. dollarsin thousands):

2009 2008

Saving deposits in localcurrency: .................................. Saving deposits W— 17,662,663 W— 13,851,176

Corporate free savings deposits 23,854,302 23,608,602

Time deposits 72,437,673 63,809,618

Installment savings deposits 2,553,119 2,652,384

Workers’ preferential savings deposits andother 1,578,137 1,415,681

118,085,894 105,337,461

Mutual installment:....................... Mutual installment deposits 3,628 670

Mutual installment deposits for housing 140,789 187,151

144,417 187,821

W— 118,230,311 W— 105,525,282

2009 2008



equivalent



equivalent

Saving deposits in foreign currencies:

Time deposits ............................................ $3,904,335 W— 4,558,702 $4,085,189 W— 5,137,125

Notice deposits .......................................... 205,689 240,163 418 526

$4,110,024 W— 4,798,865 $4,085,607 W— 5,137,651


(4) Certificate of deposits as of December 31, 2009 and 2008 were as follows (Unit: Korean Won in millions):

2009 2008

Customers’ certificate of deposit ........................................................................... W— 10,006,389 W— 14,688,751

F-45

(5) Deposits, by depositor type, as of December 31, 2009 and 2008 were as follows (Unit: Korean Won in millions):

Depositor 2009 2008

Local currency ................................................. Individuals W— 48,365,139 W— 40,359,694

Corporations 34,507,108 25,140,139

Local governments 5,248,946 7,347,893

Financial institutions 28,340,647 29,770,347

Government 7,649,108 9,027,692

Non-residents 677,751 666,431

Social welfare institutions 933,889 192,752

125,722,588 112,504,948

Foreign currencies ............................................ Residents and other 5,486,311 5,052,317

Deposits in overseas branches 1,735,722 1,727,341

Deposits in overseassubsidiaries 2,533,457 2,355,518

9,755,490 9,135,176

Certificate of deposits ...................................... Individuals 3,069,396 4,726,234

Corporations 4,463,067 7,398,644

Local governments 8,563 337

Financial institutions 1,694,594 2,070,850

Government 84,619 349,369

Non-residents 1,150 2,317

Social welfare institutions 685,000 141,000

10,006,389 14,688,751

W— 145,484,467 W— 136,328,875

13. BORROWINGS

(1) Borrowings as of December 31, 2009 and 2008 consisted of the following (Unit: Korean Won in millions):

2009 2008

Call money ........................................................................................................... W— 5,284,137 W— 2,903,416

Bills sold .............................................................................................................. 89,180 124,016

Bonds sold under repurchase agreements............................................................... 363,821 1,197,431

Borrowings in local currency ................................................................................ 6,100,356 5,764,021

Borrowings in foreign currencies .......................................................................... 8,212,314 10,223,855

Less: discounts ..................................................................................................... (5,284) —

Debentures in local currency ................................................................................. 20,545,067 25,138,152

Debentures in foreign currencies ........................................................................... 6,924,599 6,506,268

Less: discounts ..................................................................................................... (46,714) (60,412)

Add: premium ....................................................................................................... — 360

Securities sold ...................................................................................................... 58,487 —

W— 47,525,963 W— 51,797,107

F-46

(2) Call money, bills sold, bonds sold under repurchase agreements and securities sold as of December 31, 2009 and 2008consisted of the following (Unit: Korean Won in millions):

Interest rate (%)2009 2009 2008

Call money in local currency...................................... 1.8~2.0 W— 4,260,800 W— —

Call money in foreign currencies ................................ 0.2~1.5 1,023,337 2,903,416

5,284,137 2,903,416

Bills sold.................................................................... 0.0~3.4 89,180 124,016

Bonds sold under repurchase agreements inlocal currency ........................................................ 2.0~21.2 13,541 1,197,431

Bonds sold under repurchase agreements inforeign currencies................................................... 4.6~5.3 350,280 —

363,821 1,197,431

Securities sold ............................................................ — 58,487 —

(3) Borrowings in local currency as of December 31, 2009 and 2008 consisted of the following (Unit: Korean Won inmillions):

CreditorInterest rate

(%) 2009 2009 2008

Borrowings from BOK............. BOK 1.3 W— 1,107,227 W— 865,283

Borrowings from governmentfund ....................................

Small Business Corporation 3.8~5.3 806,491 617,740

Ministry of Labor 0.0~2.0 345,118 339,053

Ministry of Information andCommunication

3.6 73,112 106,487

Ministry of KnowledgeEconomy

3.8~4.6 13,898 21,267

Korea Energy ManagementCorporation

0.8 408,382 343,963

Environment ManagementCorporation and other

0.0~4.5 381,484 455,310

2,028,485 1,883,820

Borrowings from municipalgovernments ........................

Seoul municipal government 0.0~3.8 1,412,412 1,443,700

Pusan municipal governmentand other

0.0~5.0 1,390,226 1,357,225

2,802,638 2,800,925

Other ....................................... Small Business Corporation 3.8 127,926 187,251

Korea International TradeAssociation and other

3.0~3.5 34,080 26,742

162,006 213,993

W— 6,100,356 W— 5,764,021

F-47

(4) Borrowings in foreign currencies as of December 31, 2009 and 2008 consisted of the following (Unit: Korean Won inmillions, U.S. Dollars in thousands):

(2009) Creditor

Interestrate(%)

U.S. Dollars ortheir

equivalentKorean Won

equivalent

Overdrafts ............................. JP Morgan Chase Bank and other 1.4~4.9 $591,850 W— 691,044

Foreign financial institutions. JP Morgan Chase Bank and other 0.6~7.1 4,040,598 4,717,802

Domestic banks..................... Korea Development Bank and other 1.8~4.2 62,140 72,555

Borrowing for sub-loan ......... Ministry Of Strategy and Finance 1.7 1,029 1,201

Domestic import usance bill .. JP Morgan Chase Bank and other 1.3~3.0 2,194,304 2,562,069

Other .................................... Abu Dhabi Commercial Bank and other 0.7~3.4 143,579 167,643

Debt present value discounts . (4,525) (5,284)

$7,028,975 W— 8,207,030

(2008) Creditor

Interestrate(%)



equivalent

Overdrafts ............................. Wachovia and other 4.3~7.6 $534,098 W— 671,628

Foreign financial institutions. Aozora Bank and other 2.0~5.7 5,849,008 7,355,128

Domestic banks..................... The Export-Import Bank of Korea and other 3.0~6.5 1,747,196 2,197,099

$8,130,302 W— 10,223,855

(5) Debentures in local currency as of December 31, 2009 and 2008 were as follows (Unit: Korean Won in millions):

TypeInterest rate (%)

2009 2009 2008

General debentures ............................................................... 2.8~10.1 W— 15,152,066 W— 20,967,213

Subordinated debentures ....................................................... 5.0~10.3 4,138,001 3,915,939

Hybrid bond ......................................................................... 6.7~7.7 1,255,000 255,000

Discount on debentures issued .............................................. (26,557) (45,292)

W— 20,518,510 W— 25,092,860

(6) Debentures in foreign currencies as of December 31, 2009 and 2008 were as follows (Unit: Korean Won in millions, USdollars in thousands):

2009 2008

TypeInterest rate (%)

2009



equivalent



equivalent

General debentures .................. 0.5~9.9 $3,437,316 W— 4,013,410 $2,652,025 W— 3,334,922

Subordinated debentures .......... 6.0~7.6 1,465,469 1,711,082 1,493,725 1,878,359

Hybrid bond ............................ 6.2 1,027,841 1,200,107 1,028,221 1,292,987

Discount on debentures issued . (17,263) (20,157) (12,023) (15,120)

Premium on debentures issued — — 286 360

$5,913,363 W— 6,904,442 $5,162,234 W— 6,491,508


F-48

14. ACCEPTANCES AND GUARANTEES AND ALLOWANCE FOR POSSIBLE LOSSES

(1) The acceptances and guarantees as of December 31, 2009 and 2008 were as follows (Unit: Korean Won in millions):

2009 2008

Confirmed A&G

In local currency ...................... Acceptances and guarantees of bond issuing W— 46,206 W— 4,283

Acceptances and guarantees of loans 84,137 73,947

Other acceptances and guarantees 828,371 1,123,944

958,714 1,202,174

In foreign currencies ................ Acquisition 764,724 745,956

Letter of guarantee 113,564 99,136

Credit derivatives sold 134,274 169,763

Other acceptances and guarantees 8,174,271 9,421,692

9,186,833 10,436,547

W— 10,145,547 W— 11,638,721

Unconfirmed A&G

Letter of credit ......................... Local L/C in foreign currencies 616,943 569,692

Local L/C in local currency 111,654 72,632

Import credit 5,431,537 5,844,981

6,160,134 6,487,305

Others ...................................... 4,709,636 7,904,898

10,869,770 14,392,203

Bills endorsed .............................. Collateralized and endorsed notes 9,523 7,121

(2) The percentage of allowance for possible losses compared to confirmed acceptances and guarantees (“A&G”),unconfirmed A&G and bills endorsed as of December 31, 2009 and 2008 was as follows (Unit: Korean Won in billions):

(2009) AmountAllowance forpossible losses Ratio (%)

Confirmed A&G ....................................................................... W— 10,146 W— 107 1.1

Unconfirmed A&G..................................................................... 10,870 56 0.5

Bills endorsed ........................................................................... 9 — 2.1

W— 21,025 W— 163 0.8

(2008) AmountAllowance forpossible losses Ratio (%)

Confirmed A&G ....................................................................... W— 11,639 W— 95 0.8

Unconfirmed A&G..................................................................... 14,392 37 0.3

Bills endorsed ........................................................................... 7 — 1.4

W— 26,038 W— 132 0.5

F-49

(3) Confirmed A&G, unconfirmed A&G, bills endorsed and allowance for possible losses under the asset qualityclassification as of December 31, 2009 and 2008 were as follows (Unit: Korean Won in billions):

(2009)Confirmed

A&GUnconfirmed

A&G Bills endorsed

Normal ...................................................................................... W— 9,949 W— 10,373 W— 9

Precautionary ............................................................................ 26 181 —

Substandard ............................................................................... 104 204 —

Doubtful .................................................................................... 5 1 —

Loss .......................................................................................... 62 111 —

W— 10,146 W— 10,870 W— 9

(2009) Allowance for possible losses

ConfirmedA&G

UnconfirmedA&G Bills endorsed

Normal ...................................................................................... W— 49 W— 14 W— -

Precautionary ............................................................................ 1 3 —

Substandard ............................................................................... 24 17 —

Doubtful .................................................................................... 2 — —

Loss .......................................................................................... 31 22 —

W— 107 W— 56 W— -

(2008)Confirmed

A&GUnconfirmed

A&G Bills endorsed

Normal ...................................................................................... W— 11,398 W— 14,061 W— 7

Precautionary ............................................................................ 109 183 —

Substandard ............................................................................... 1 5 —

Doubtful .................................................................................... 123 141 —

Loss .......................................................................................... 8 2 —

W— 11,639 W— 14,392 W— 7

(2008) Allowance for possible losses

ConfirmedA&G

UnconfirmedA&G Bills endorsed

Normal ...................................................................................... W— 55 W— 20 W— -

Precautionary ............................................................................ 4 2 —

Substandard ............................................................................... 1 1 —

Doubtful .................................................................................... 31 14 —

Loss .......................................................................................... 4 — —

W— 95 W— 37 W— -

F-50

15. OTHER LIABILITIES

(1) Other liabilities as of December 31, 2009 and 2008 consisted of the following (Unit: Korean Won in millions):

2009 2008

Accrued severance benefits (Note 2) ..................................................................... W— 139,905 W— 215,441

Less: Individual severance insurance deposits ...................................................... (95,327) (146,612)

Less: Transfers to the National Pension Fund........................................................ (12) (12)

Accounts payable-other ......................................................................................... 1,770,358 2,664,906

Accrued expenses.................................................................................................. 2,024,880 2,701,279

Unearned revenues ................................................................................................ 116,798 172,948

Deposit for letter of guarantees and other ............................................................. 166,171 171,687

Foreign exchange remittance pending .................................................................... 372,377 260,147

Allowance for possible losses of acceptances and guarantees ................................ 162,637 132,071

Borrowings from trust accounts............................................................................. 2,499,038 3,997,792

Allowance for unused credit line........................................................................... 404,262 371,899

Other allowance (Note 25) .................................................................................... 97,138 112,731

Derivative liabilities (Note 26) ............................................................................. 4,031,751 11,043,371

Domestic exchange settlement credits ................................................................... 341,572 2,087,573

Deposits held by agency relationship .................................................................... 913,398 964,567

Sundry liabilities .................................................................................................. 852,193 509,093

W— 13,797,139 W— 25,258,881

(2) Sundry liabilities included in other liabilities as of December 31, 2009 and 2008 consisted of (Unit: Korean Won inmillions):

2009 2008

Income tax payable ............................................................................................... W— 6,928 W— 113,125

Giro accounts........................................................................................................ 197,986 169,787

Deposits for securities subscription ...................................................................... 23,186 29,016

Withholding taxes ................................................................................................. 61,605 53,972

Special reserves .................................................................................................... 36,474 33,453

Prepaid card.......................................................................................................... 23,181 23,269

National Housing Fund ......................................................................................... 5,414 4,489

Debit card ............................................................................................................. 62,394 48,103

Suspense payable .................................................................................................. 434,263 32,911

Other .................................................................................................................... 762 968

W— 852,193 W— 509,093

16. SHAREHOLDER’S EQUITY

(1) Capital stock

The Bank is wholly owned by WFH, a subsidiary of KDIC, as of December 31, 2009. The details of capital stock as ofDecember 31, 2009 and 2008 were as follows (Unit: Korean Won in millions):

2009

Common Stock Preferred Stock

Authorized shares ............................................................................ 3,000 million shares

Par value per share ........................................................................... W—5,000

Outstanding shares ............................................................................ 696 million shares 70 million shares

Capital stock ..................................................................................... W—3,479,783 million W—350,000 million

F-51

2008

Common Stock Preferred Stock

Authorized shares ............................................................................ 2,000 million shares

Par value per share ........................................................................... W— 5,000

Outstanding shares ............................................................................ 636 million shares 70 million shares

Capital stock ..................................................................................... W— 3,179,783 million W—350,000 million

(2) Capital surplus

The details of capital surplus as of December 31, 2009 and 2008 were as follows (Unit: Korean Won in millions):

2009 2008

Increase by issuance of preferred stock and common stock issuance ..................... W— 346,880 W— 348,320

Increase by acquisition of banking segment of formerly Peace Bank ..................... 31,903 31,903

Gain on disposal of subsidiary stock .....................................................................

(Formerly Woori Investment Trust Management Co., Ltd.) .................................... 17,392 17,392

Loss on disposal of subsidiary stock (Formerly Woori Securities Co., Ltd.) .......... (55,369) (55,369)

Increase by merger with formerly Woori Investment Bank Co., Ltd....................... 138,682 138,682

Increase by merger with formerly Woori Card ....................................................... 330,395 330,395

Increase by additional acquisition of P.T. Bank Woori Indonesia’ interests ............ 2,400 2,225

W— 812,283 W— 813,548

(3) The changes in accumulated other comprehensive income for the year ended December 31, 2009 were as follows (Unit:Korean Won in millions):

Balance as of Jan. 1, 2009

Gain orloss on

valuation

Realizationdue to

dispositionand other

Balance as of Dec. 31, 2009

Unrealizedgains or

lossesTax

effectBookvalue

Unrealizedgains or

lossesTax

effectBookvalue

Gain on valuation of available-for-sale securities:

Securities in local currency

Equity securities ..................... W— 836,427 W—(184,014)W— 652,413 W— 335,701 W— 221,509 W— 1,393,637 W—(315,718)W—1,077,919

Capital contributions............... (3,184) 701 (2,483) (9,814) (279) (13,277) 2,921 (10,356)

Debt securities ........................ 131,166 (28,856) 102,310 (32,785) (100,006) (1,625) 229 (1,396)

Beneficiary certificates ........... 13,237 (2,912) 10,325 18,116 (33,817) (2,464) 311 (2,153)

977,646 (215,081) 762,565 311,218 87,407 1,376,271 (312,257) 1,064,014

Securities in foreign currencies

Equity securities ..................... 5,497 (1,210) 4,287 (20,662) (1,082) (16,247) 3,574 (12,673)

Debt securities ........................ (138,740) 30,522 (108,218) 99,000 95,089 55,349 (12,177) 43,172

(133,243) 29,312 (103,931) 78,338 94,007 39,102 (8,603) 30,499

Changes in shareholder’sequity by equity method ......... 21,644 (4,761) 16,883 31,343 — 52,987 (11,657) 41,330

W— 866,047 W—(190,530)W— 675,517 W— 420,899 W— 181,414 W— 1,468,360 W—(332,517)W—1,135,843

F-52

(4) Retained earnings

1) The details of retained earnings as of December 31, 2009 and 2008 were as follows (Unit: Korean Won in millions):

2009 2008

Legal reserve ........................................................................................................ W— 993,300 W— 969,900

Other legal reserve................................................................................................ 30,009 30,609

Business rationalization reserve ............................................................................ 8,000 8,000

Reserve for financial structure improvement ......................................................... 212,000 212,000

Voluntary reserve .................................................................................................. 5,653,044 5,537,044

Retained earnings before appropriations ................................................................ 954,464 144,877

W— 7,850,817 W— 6,902,430

2) The changes in retained earnings before appropriations for the year ended December 31, 2009 were as follows (Unit:Korean Won in millions):

Amount

Balance as of January 1, 2009 .......................................................................................................... W— 144,877

Increase in legal reserve ................................................................................................................... (23,400)

Increase in other legal reserve .......................................................................................................... (2,388)

Increase in voluntary reserve ............................................................................................................ (116,000)

Cash dividends ................................................................................................................................. (2,455)

Net income (controlling interest) ...................................................................................................... 953,830

Balance as of December 31, 2009..................................................................................................... W— 954,464

(5) Dividends

Cash dividends in 2009 and 2008 were as follows:

2009 2008

Common stock Preferred stock (*) Preferred stock (*)Shares issued and outstanding.................. 695,956,580 shares 70,000,000 shares 70,000,000 shares

Par value per share .................................. W— 5,000 W— 5,000 W— 5,000

Capital stock ........................................... W— 3,479,783 million W— 350,000 million W— 350,000 million

Dividend rate ......................................... 6.6% 16% 0.7%

Cash dividends ........................................ W— 230,149 million W— 56,000 million W— 2,455 million

Net income .............................................. W— 953,830 million W— 953,830million W— 233,976 million

Payout ratio ............................................. 24.1% 5.9% 1.1%

(*) Preferred stock’ dividend rate is 8% of issuance price per share, non-cumulative and non-participating on commonstock.

F-53

17. STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

Comprehensive income (loss) in 2009 and 2008 consisted of the following (Unit: Korean Won in millions):

2009 2008

Net income .......................................................................................................... W— 954,564 W— 234,686

Other comprehensive income (loss):

Gain (loss) on valuation of available-for sale securities ................................... 435,879 (1,056,461)

Changes in shareholder’s equity by equity method ............................................ 22,474 18,943

Negative changes in shareholder’s equity by equity method .............................. 1,973 (1,856)

460,326 (1,039,374)

Comprehensive income (loss):

Controlling interest ........................................................................................... 1,414,156 (805,398)

Minority interests ............................................................................................. 734 710

W— 1,414,890 W— (804,688)

18. GENERAL ADMINISTRATIVE EXPENSES

General administrative expenses in 2009 and 2008 consisted of the following (Unit: Korean Won in millions):

2009 2008

Salaries and benefits.................................... Salaries W— 864,920 W— 879,078

Severance benefits 102,699 77,286

Retirement allowance 19,365 21,468

986,984 977,832

Other general administrative expenses ......... Employee benefits 224,605 246,069

Rent 144,551 145,556

Entertainment 21,309 11,627

Depreciation (Note 8) 85,441 93,518

Amortization (Note 9) 58,254 71,906

Taxes and dues 92,496 112,529

Advertisement 24,701 38,247

Computer related expenses 243,445 240,826

Outside service fee 122,894 137,241

Others 162,051 182,659

1,179,747 1,280,178

W— 2,166,731 W— 2,258,010

F-54

19. NON-OPERATING INCOME AND EXPENSES

Non-operating income and expenses in 2009 and 2008 consisted of the following (Unit: Korean Won in millions):

2009 2008

Non-operating income:

Gain on valuation using the equity method (Note 4) ......................................... W— 31,740 W— 58,846

Gain on disposal of equity securities accounted for using the equity method .... 27 423

Gain on disposal of tangible assets ................................................................... 139,792 7,389

Rental income................................................................................................... 9,796 10,481

Others............................................................................................................... 49,544 56,255

W— 230,899 W— 133,394

Non-operating expenses:

Loss on valuation using the equity method (Note 4) ......................................... W— 3 W— 3,980

Loss on disposal of tangible assets .................................................................. 503 593

Loss on impairment of tangible assets .............................................................. — 4,759

Expense on collecting of charge-off .................................................................. 10,751 11,996

Contributions .................................................................................................... 43,614 33,306

Others............................................................................................................... 40,960 19,852

W— 95,831 W— 74,486

20. LOSS ON IMPAIRMENT OF SECURITIES AND REVERSAL OF IMPAIRMENT

(1) The impairment loss and reversal of impairment loss on available-for-sale securities in 2009 consist of the following(Unit: Korean Won in millions):

Equitysecurities Debt securities

Beneficiarycertificates

Impairment loss: ......................................................................

Morgan Stanley Real Estate Fund V .......................................... W— 15,692 W— — W— —

Morgan Stanley Real Estate Fund VI ......................................... 21,750 — —

DLJ 3 Fund ............................................................................... 4,827 — —

Daewoo Motor Company Trust Beneficiary Certificates Deed 1 . — 17,678

Woori MileStone Private Real Estate Fund 1 ............................. — — 12,628

Woori CS Ocean Bridge Special Asset No.7 .............................. — 3,317

Woori CS Ocean Bridge Special Asset No.9 .............................. — — 4,461

Collateralized Debt Obligation .................................................. — 19,090 —

Other ......................................................................................... 4,166 — 1,340

W— 46,435 W— 19,090 W— 39,424

Reversal of impairment loss: ....................................................

Haitai Confectionery & Foods Co., Ltd. .................................... — 87 —

Haitai Electronics ...................................................................... — 69 —

GM Daewoo Auto & Technology Company................................ — 51 —

Hicon Tech Co. Ltd. .................................................................. — 75 —

W— — W— 282 W— —

F-55

21. INCOME TAX EXPENSE

(1) Income tax expense as of December 31, 2009 and 2008 consisted of the following (Unit: Korean Won in millions):

2009 2008

Woori Bank-income tax expense ........................................................................... W— 235,085 W— 348,187

Subsidiaries-income tax expense ........................................................................... 16,968 24,446

W— 252,053 W— 372,633

(2) As of December 31, 2009 and 2008, the deferred tax assets of the Bank were as follows (Unit: Korean Won in millions):

2009 2008

Deferred income tax assets:

Woori Bank ...................................................................................................... W— 124,787 W— 585,430

WCI ................................................................................................................. 93 84

Woori America Bank......................................................................................... 17,782 17,056

P.T. Bank Woori Indonesia ................................................................................ 145 402

Woori Bank China Limited ............................................................................... — 480

W— 142,807 W— 603,452

22. NET INCOME PER COMMON SHARE

(1) Basic earnings per common share in 2009 and 2008 was computed as follows (Unit: Korean Won in millions except sharesand earnings per share data)

2009 2008

Net income on common share ...............................................................................

Net income .......................................................................................................... 953,830 233,976

Dividend on preferred stock .................................................................................. (56,000) (2,455)

897,830 231,521

The weighted average number of common shares outstanding(Shares in millions) (*)..................................................................................... �681 �636

Basic earnings per common share (Korean won) ................................................... W— 1,318 W— 364

(*) The weighted average number of common shares outstanding in 2009 and 2008 was calculated as follows (Unit:share):

2009 2008

Shares Days Total Shares Days TotalBeginning ............................. 636 million 365 636 million 636 million 365 636 million

Paid in capital increase ......... 60 million 275 45 million — — —

Weighted average number ofcommon sharesoutstanding ....................... 681 million 636 million

F-56

(2) Diluted earnings per common share in 2009 and 2008 was computed as follows (Unit: Korean Won in millions exceptshares and earnings per share data)

2009 2008

Dilution net income for the year

Net income on common share ........................................................................... 897,830 231,521

Dividend on preferred stock.............................................................................. 56,000 2,455

953,830 233,976

The number of common shares outstanding of potential common shares (Sharesin millions) (*1) ............................................................................................... �751 �639

Dilution earnings per share (Korean won) (*2) ..................................................... W— 1,270 W— 364

(*1) The number of common shares outstanding of potential common shares in 2009 and 2008 was calculated as follows(Unit: share):

2009 2008

Shares Days Total Shares Days TotalNumber of common shares .... 681 million 365 681 million 636 million 365 636 million

Preferred stock...................... 70 million 365 70 million 70 million 16 3 million

751 million 639 million

(*2) When the Bank considered conversion of convertible preferred stock as of December 31, 2008, there is no dilutioneffect, so the dilution earnings per share was the same as the basic earnings per share.

23. ASSETS AND LIABILITIES DENOMINATED IN FOREIGN CURRENCIES

The followings were significant assets and liabilities denominated in foreign currencies as of December 31, 2009 and2008 (Unit: Korean Won in millions, U.S. Dollars in thousands):

2009 2008



equivalent



equivalent

Assets:

Cash .......................................................... US$290,415 W— 339,089 US$297,102 W— 373,606

Due from banks ........................................ 1,819,610 2,124,577 3,194,302 4,016,835

Available-for-sale securities ...................... 672,036 784,670 983,295 1,236,494

Held-to-maturity securities ......................... 169,138 197,487 145,901 183,471

Loans ....................................................... 10,659,527 12,446,064 12,380,044 15,567,905

Bills bought .............................................. 3,758,134 4,387,997 3,959,609 4,979,208

Call loans .................................................. 1,911,929 2,232,368 1,041,809 1,310,075

Liabilities:

Deposits ................................................... US$8,355,164 W— 9,755,490 US$7,264,553 W— 9,135,176

Borrowings ............................................... 7,028,974 8,207,030 8,130,302 10,223,855

Call money ................................................ 876,445 1,023,337 2,308,880 2,903,416

Debentures ............................................... 5,930,626 6,924,599 5,173,971 6,506,268

F-57

24. TRANSACTIONS WITH RELATED PARTIES

The related parties of the Bank as of December 31, 2009 were as follows:

Related parties

Ultimate controlling party ....... KDIC

Parent...................................... WFH

Subsidiaries ............................. Trust accounts of the Bank, WCI, Woori America Bank, P.T. Bank Woori Indonesia,Woori Global Market Asia Ltd., Woori Bank China Limited and Zao Woori Bank

Other ....................................... Kyongnam Bank, Trust accounts of Kyongnam Bank, Kwangju Bank, Trust accountsof Kwangju Bank, Woori Finance Information System Co., Ltd.(“WFIS”), WooriF&I Co., Ltd., Woori F&I 5th Asset Securitization Specialty , Woori F&I 6th AssetSecuritization Specialty, Woori F&I 7th Asset Securitization Specialty, Woori F&I10th Asset Securitization Specialty, WFH 3rd SPC, Woori Asset Management Co.,Ltd. (“Woori AMC”), Woori Investment & Securities Co., Ltd., Woori Futures Co.,Ltd., Woori AM Co., Ltd. (“Woori AM”), Woori Private Equity, Woori PrivateEquity Fund, Woori Investment Asia Pte. Ltd., Woori Investment Securities (H.K)Ltd., LG Investment Holding B.V.(Amsterdam) GG, Mars No. 1 PEF, Mars No. 2PEF, Woori Financial Co., Ltd., Connacht Capital Market Investment, KumhoInvestment Bank, Woori Aviva Life Insurance Co., Ltd., Woori Renaissance Co.,Ltd., UP Chemical Co., Ltd., Phoenix Digital Tech Co., Ltd., UB Precision Co., Ltd.

(1) Significant balances and transactions with related parties as of and for the year ended December 31, 2009 are as follows(Unit: Korean Won in millions):

1) Assets

Cash anddue from

banks LoansOtherassets Total

Ultimatecontrollingparty ............... KDIC W— — W— — W— 221,001 W— 221,001

Parent .................. WFH — 203 — 203Subsidiaries ......... Trust accounts of the Bank — — 11,007 11,007

WCI — 122 — 122P.T. Bank Woori Indonesia — — 405 405Woori Global Market Asia Ltd. — 71,807 47,090 118,897Woori Bank China Limited 9,031 70,056 — 79,087ZAO Woori Bank 5,838 32,529 81 38,448

Other ................... Kyongnam Bank 1,771 — 41,371 43,142Kwangju Bank 3,059 — 28,122 31,181WFIS — 85 — 85Woori F&I Co., Ltd. — 20 792 812Woori F&I 6th Asset SecuritizationSpecialty — — 1 1Woori F&I 7th Asset SecuritizationSpecialty — — 1 1Woori F&I 10th Asset SecuritizationSpecialty — — 1 1Woori Investment & Securities Co., Ltd. 7,407 1,286 598 9,291Woori Futures Co., Ltd. 4,436 93 — 4,529Woori AM — 158 319 477Woori Private Equity — 23 — 23Woori Private Equity Fund — — 21 21Kumho Investment Bank — 20,172 640 20,812Woori Renaissance Co., Ltd. — 20,000 239 20,239UP Chemical Co., Ltd. — 9 — 9Phoenix Digital Tech Co., Ltd. — 4,795 — 4,795UB Precision Co., Ltd. — 5,512 — 5,512Woori Financial Co., Ltd. — 202 35 237Woori Aviva Life Insurance Co., Ltd. — 239 176 415

W— 31,542 W— 227,311 W— 351,900 W— 610,753

F-58

2) Liabilities

Deposit BorrowingsOther

liabilities Total

Parent .................. WFH W— 24,135 W— — W— 31,568 W— 55,703

Subsidiaries ......... Trust accounts of the Bank — — 167,447 167,447

WCI 11,300 — 10,184 21,484

Woori America Bank 1,896 — — 1,896

P.T. Bank Woori Indonesia 1,662 — 51 1,713

Woori Global Market Asia Ltd. 1,208 — — 1,208

Other ................... Kyongnam Bank 12,047 5,804 76,976 94,827

Kwangju Bank 5,233 26,386 1,531 33,150

WFIS 489 — 21,580 22,069

Woori F&I Co., Ltd. 886 — 185 1,071

Woori F&I 6th Asset SecuritizationSpecialty

460 — — 460


307 — — 307


8,214 — — 8,214

Woori Investment & Securities Co., Ltd. 332,394 28,070 75,353 435,817

Woori Futures Co., Ltd. 7,340 — 80 7,420

Woori Investment Securities (H.K) Ltd. 4,670 — 68 4,738

Woori Investment Asia Pte. Ltd. 5,838 — — 5,838

Woori AM 14,215 — 177 14,392

Woori Private Equity 4,971 — 41 5,012

Woori Private Equity Fund 789 — — 789

Kumho Investment Bank 31,350 1,000 6,186 38,536

Woori Renaissance Co., Ltd. 2,789 — 1 2,790

UP Chemical Co., Ltd. 56,588 — 758 57,346

Phoenix Digital Tech Co., Ltd. 2 — — 2

Woori Financial Co., Ltd. 8,599 — 400 8,999

Woori Aviva Life Insurance Co., Ltd. 471 — 7,766 8,237

W— 537,853 W— 61,260 W— 400,352 W— 999,465

F-59

3) Revenues

Interestincome

Commissionincome

Otheroperatingrevenue

Other non-operating

income Total

Ultimatecontrollingparty ..... KDIC W— 12,124 W— — W— — W— — W— 12,124

Parent ........ WFH — — — 727 727

Subsidiaries. Trust accounts of the Bank — — 16,473 — 16,473

WCI — — — 358 358

P.T. Bank Woori Indonesia 219 354 — — 573

Woori Global Market Asia Ltd. 3,953 35 — — 3,988

Woori Bank China Limited 4,626 — — — 4,626

ZAO Woori Bank 792 — — — 792

Other ......... Kyongnam Bank — — 33,481 — 33,481

Trust accounts of KyongnamBank 331 — — — 331

Kwangju Bank — — 35 — 35

WFIS — — — 6,095 6,095

Woori F&I Co., Ltd. — — 338 — 338

Woori F&I 6th AssetSecuritization Specialty — 12 — — 12



Woori Investment & SecuritiesCo., Ltd. 30 — 1,630 820 2,480

Woori Futures Co., Ltd. — 16 — — 16

Woori AM — 1,329 — — 1,329

Woori Private Equity Fund — 41 — — 41

Kumho Investment Bank 1,520 — 647 — 2,167

Woori Renaissance Co., Ltd. 1,171 9 — — 1,180

Phoenix Digital Tech Co., Ltd. 630 13 — — 643

UB Precision Co., Ltd. 486 — — — 486

Woori Financial Co., Ltd. — 187 35 30 252

Woori Aviva Life Insurance Co.,Ltd. — 12,037 — 185 12,222

W— 25,882 W— 14,051 W— 52,639 W— 8,215 W— 100,787

F-60

4) Expenses

Interestexpense

Commissionexpense

General andadministrative

expenses

Otheroperatingexpenses Total

Parent ........ WFH W— 2,761 W— — W— — W— — W— 2,761

Subsidiaries. Trust accounts of the Bank 4,749 — — — 4,749

WCI 238 23,889 — — 24,127

Woori Global Market Asia Ltd. 81 — — — 81

Woori Bank China Limited 942 — — — 942

ZAO Woori Bank 4 — — — 4

Other ......... Kyongnam Bank 330 — — 35,179 35,509

Kwangju Bank 1,149 — — 497 1,646

WFIS 1 — 212,834 — 212,835

Woori F&I Co., Ltd. 1 — — 436 437

Woori F&I 6th AssetSecuritization Specialty

4 — — — 4


2 — — — 2


45 — — — 45

Woori Investment & SecuritiesCo., Ltd.

14,393 309 88 39,648 54,438

Woori Futures Co., Ltd. 37 109 — 1,507 1,653

Woori Investment Securities(H.K) Ltd.

77 — — — 77

Woori Investment Asia Pte.Ltd.

28 — — — 28

Woori AM 1,155 — — — 1,155

Woori Private Equity 59 — — — 59

Woori Private Equity Fund 17 — — — 17

Kumho Investment Bank 668 — — 8,279 8,947

Woori Renaissance Co., Ltd. 27 — — — 27

UP Chemical Co., Ltd. 4,162 — — — 4,162

UB Precision Co., Ltd. 2,641 2 — — 2,643

Woori Financial Co., Ltd. 299 236 — — 535

Woori Aviva Life InsuranceCo., Ltd.

358 — 578 — 936

W— 34,228 W— 24,545 W— 213,500 W— 85,546 W— 357,819

F-61

(2) Significant balances and transactions with related parties as of and for the year ended December 31, 2008 are as follows(Unit: Korean Won in millions):

1) Assets

Cash anddue from

banks LoansOtherassets Total

Ultimatecontrollingparty ............... KDIC W— — W— 25,600 W— 183,699 W— 209,299

Parent .................. WFH — 221 — 221

Subsidiaries ......... Trust accounts of the Bank — — 55,288 55,288

WCI — 154 — 154

Woori America Bank 406 — — 406

P.T. Bank Woori Indonesia — 27,897 74 27,971

Woori Global Market Asia Ltd. — 152,032 2,417 154,449

Woori Bank China Limited 49,299 165,961 14,927 230,187

ZAO Woori Bank — 39,451 260 39,711

Other ................... Kyongnam Bank 2,228 — 78,197 80,425

Kwangju Bank 5,496 — — 5,496

WFIS — 99 — 99

Woori F&I Co., Ltd. — — 1,806 1,806

Woori F&I 6th Asset SecuritizationSpecialty — — 1 1

Woori F&I 7th Asset SecuritizationSpecialty — — 1 1


Woori Futures Co., Ltd. — 133 — 133

Woori AM — 16 279 295

Woori Private Equity — 24 — 24

Kumho Investment Bank 8,803 68,258 5,259 82,320

Woori EL, Ltd. — — 1 1

Woori Financial Co., Ltd. — 183 1 184

Woori Aviva Life Insurance Co., Ltd. — 261 — 261

W— 67,658 W— 481,553 W— 343,848 W— 893,059

F-62

2) Liabilities

Deposit BorrowingsOther

liabilities Total

Parent ................ WFH W— 120,438 W— — W— 30,852 W— 151,290

Subsidiaries........ Trust accounts of the Bank — — 326,788 326,788

WCI 7,566 — 10,023 17,589

P.T. Bank Woori Indonesia 88 6,288 41 6,417

Woori Global Market Asia Ltd. — 30,180 105 30,285

Woori Bank China Limited 4 28,347 791 29,142

Other ................. Kyongnam Bank 9,475 8,544 64,613 82,632

Kwangju Bank 8,678 33,466 4,965 47,109

WFIS 2,334 — 20,628 22,962

Woori F&I Co., Ltd. 353 — 63 416

Woori F&I 5th Asset SecuritizationSpecialty 61 — — 61

Woori F&I 6th Asset SecuritizationSpecialty 776 — 1 777

Woori F&I 7th Asset SecuritizationSpecialty 972 — 1 973

Woori F&I 8th Asset SecuritizationSpecialty 625 — — 625

WFH 3rd SPC 187 — — 187

Woori AMC 5,763 — 43 5,806


Woori Futures Co., Ltd. 6,141 — — 6,141

Woori Investment Securities Int’l Inc. 1,123 — — 1,123

Woori Investment Securities AmericaInc. 2,577 — 23 2,600

Woori Investment Securities (H.K) Ltd. 5,070 — 2 5,072

Woori Investment & SecuritiesInternational 21 — — 21

Woori AM 27,569 — 893 28,462

Woori Private Equity 612 — — 612

Woori Private Equity Fund 52 — — 52

Kumho Investment Bank 52,257 1,000 9 53,266

Woori EL, Ltd. 31 — — 31

Woori Financial Co., Ltd. 5,070 — 316 5,386

Woori Aviva Life Insurance Co., Ltd. 9,994 — 1,225 11,219

W— 662,572 W— 278,524 W— 520,963 W— 1,462,059

F-63

3) Revenues

Interestincome

Commissionincome

Otheroperatingrevenue

Other non-operating

income Total

Ultimatecontrollingparty ..... KDIC W— 30,900 W— — W— 347 W— — W— 31,247

Parent ........ WFH — — — 674 674

Subsidiaries. Trust accounts of the Bank — — 20,168 — 20,168

WCI — — — 351 351

P.T. Bank Woori Indonesia 2,558 — — — 2,558

Woori Global Market Asia Ltd. 3,856 — — — 3,856

Woori Bank China Limited 9,256 — — — 9,256

ZAO Woori Bank 395 — 2 — 397

Other ......... Kyongnam Bank 45 — 64,760 — 64,805

Trust accounts of KyongnamBank 205 — — — 205

Kwangju Bank 112 — 27 — 139

WFIS — — — 5,029 5,029

Woori F&I Co., Ltd. — — 3,900 — 3,900




Woori Investment & SecuritiesCo., Ltd. 17,045 527 41,170 1,196 59,938

Woori Futures Co., Ltd. — 11 — — 11

Woori AM — 1,347 — — 1,347

Woori Private Equity Fund — 48 — — 48

Kumho Investment Bank 3,668 — — — 3,668

Woori EL, Ltd. — 2 — — 2

Woori Financial Co., Ltd. — 16 — 22 38

Woori Aviva Life Insurance Co.,Ltd. — 3,216 — 23 3,239

W— 68,040 W— 5,200 W— 130,374 W— 7,295 W— 210,909

F-64

4) Expenses

Interestexpense

Commissionexpense

General andadministrative

expenses

Otheroperatingexpenses Total

Parent ........ WFH W— 6,860 W— — W— — W— — W— 6,860

Subsidiaries. Trust accounts of the Bank 8,993 — — — 8,993

WCI 223 24,315 — — 24,538

P.T. Bank Woori Indonesia 757 — — — 757

Woori Global Market Asia Ltd. 1,099 — — — 1,099

Woori Bank China Limited 195 — — — 195

ZAO Woori Bank 100 — — 2 102

Other ......... Kyongnam Bank 586 — — 68,291 68,877

Kwangju Bank 2,041 — — — 2,041

WFIS 3 — 210,802 — 210,805

Woori F&I Co., Ltd. 18 — — 63 81

Woori F&I 6th AssetSecuritization Specialty 39 — — — 39



WFH 3rd SPC 3 — — — 3

Woori AMC 301 — — — 301

Woori Investment & SecuritiesCo., Ltd. 12,268 310 87 12,793 25,458

Woori Futures Co., Ltd. 91 1,220 — — 1,311

Woori Investment SecuritiesInt’l Inc. 53 — — — 53

Woori Securities America Inc. 63 — — — 63

Woori Investment Asia Pte.Ltd. 335 — — — 335

Woori AM 1,760 — — — 1,760

Woori Private Equity 110 — — — 110

Woori Private Equity Fund 10 — — — 10

Kumho Investment Bank 59 — — — 59

Woori EL, Ltd. 98 — — — 98

Woori Financial Co., Ltd. 174 1,307 — — 1,481

Woori Aviva Life InsuranceCo., Ltd. 1,144 — — — 1,144

W— 37,448 W— 27,152 W— 210,889 W— 81,149 W— 356,638

25. CONTINGENCIES AND COMMITMENTS

(1) Acceptances and guarantees as of December 31, 2009 and 2008 consisted of the following (Unit: Korean Won inmillions):

2009 2008

Commitments:

Commitments on loans in local currency........................................................... W— 59,991,213 W— 58,829,525

Commitments on loans in foreign currencies ..................................................... 18,723,420 21,243,082

Commitments on securities in local currency .................................................... 987,954 435,345

W— 79,702,587 W— 80,507,952

F-65

(2) The Bank is a defendant in 210 lawsuits claiming damages of W—179 billion and a plaintiff in 4,859 lawsuits pleadingdamages of W—780 billion as of December 31, 2009. The Bank does not anticipate the ultimate outcome of these lawsuitswill have a significant effect on the financial condition or operations of the Bank.

The major pending cases were as follows (Unit: Korean Won in billions):

PlaintiffDamagesclaimed Details of lawsuit

Ilsung Pharmaceuticals Co., Ltd. ............... W— 30 Illegal reduction of capital of Hanil BankSoosan Heavy Industries Co., Ltd. ............ 17 A claim for damages related to KIKO

(The amount of lawsuit increased by W—13,800 million)

(3) Changes in allowance for unused credit lines in 2009 and 2008 were as follows (Unit: Korean Won in millions):

(2009)Balances ofJan.1, 2009 Provision Use

Balances ofDec.31, 2009

Allowance for unused credit line of corporateand consumer loans ................................... W— 225,297 W— 22,751 W— (160) W— 248,208

Allowance for unused credit line of creditcard ........................................................... 146,602 9,452 — 156,054

W— 371,899 W— 32,203 W— (160) W— 404,262

(2008)Balances ofJan.1, 2008 Provision Use


Allowance for unused credit line of corporateand consumer loans ................................... W— 198,212 W— 26,938 W— 147 W— 225,297

Allowance for unused credit line of creditcard ........................................................... 128,188 18,414 — 146,602

W— 326,400 W— 45,352 W— 147 W— 371,899

As of December 31, 2009 and 2008, the remaining credit limit related to the object of provision for remaining contractwere W—77,901,120 million and W—76,308,927 million, respectively.

(4) Changes in other allowance in other liabilities in 2009 and 2008 were as follows (Unit: Korean Won in millions):

(2009)Balances ofJan.1, 2009

Provision(Reversal) Use


Credit card points .......................................... W— 59,407 W— 63,539 W— (52,685) W— 70,261Allowance for Power-Income Fund ................ 28,304 (15,525) — 12,779Woori Members points ................................... 19,515 (201) (10,319) 8,995Allowance for lawsuits................................... 3,072 241 (18) 3,295Allowance for unauthorized usage/issuance .... 850 652 (652) 850Other ............................................................. 1,583 107 (732) 958

W— 112,731 W— 48,813 W— (64,406) W— 97,138

(2008)Balances ofJan.1, 2008

Provision(Reversal) Use


Credit card points .......................................... W— 41,741 W— 67,793 W— (50,127) W— 59,407Allowance for Power-Income Fund ................ — 28,304 — 28,304Woori Members points ................................... 24,566 3,358 (8,409) 19,515Allowance for lawsuits................................... 3,505 — (433) 3,072Allowance for unauthorized usage/issuance .... 700 658 (508) 850Other ............................................................. 1,141 44 398 1,583

W— 71,653 W— 100,157 W— (59,079) W— 112,731

F-66

26. DERIVATIVE INSTRUMENTS

(1) As of December 31, 2009 and 2008, outstanding contract amount, gain or loss on valuation of derivative instruments inthe statements of income, and assets and liabilities in the statements of financial position were as follows (Unit: KoreanWon in millions):

(2009)Outstanding contract

amount Gain (loss) on valuation Fair value

Type Trading Hedging Trading Hedging Assets Liabilities

(Currency derivatives) ..............

Currency forwards..................... W— 34,357,927 W— — W— 570,533 W— — W— 1,368,855 W— 603,985

(579,641) —

Currency swaps ......................... 19,640,707 — 718,330 — 700,558 1,300,083

(370,466) —

Currency futures ....................... 668,498 — — — — —

Currency options purchased....... 3,049,897 — 5,190 — 662,447 —

(287,691) —

Currency options sold ............... 3,198,520 — 164,029 — — 111,492

(405) —

(Interest derivatives) ................

Interest rate swaps .................... 131,906,572 5,718,702 1,252,248 37,581 1,197,271 1,259,171

(1,072,756) (169,753)

Interest rate futures ................... 29,327 — — — — —

Interest rate options purchased .. 6,013,380 — 13,244 — 76,513 —

(80,139) —

Interest rate options sold ........... 6,164,964 — 48,515 — — 60,606

— (7,470) —

(Equity derivatives) .................

Equity futures ........................... 179,446 — — — — —

Equity options purchased .......... 427,511 — 22,797 — 47,329 —

(15,693)

Equity options sold ................... 2,077,448 — 16,391 — — 455,973

(102,705)

(Credit derivatives) ..................

Credit derivatives swap ............. 583,800 — 82,554 — — 197,960

— —

(Commodity derivatives) ..........

Commodity forward .................. 82,213 — 1,233 — 1,660 1,246

(1,384) —

Commodity swaps ..................... 157,620 — 20,037 — 18,672 18,286

(19,693) —

Commodity futures .................... 5,751 — — — — —

Commodity option purchased .... 304,145 — 35,047 — 20,026 —

(39,805) —

Commodity option sold ............. 312,065 — 2,920 — — 22,949

(1,090) —

W—209,159,791 W— 5,718,702 W— 2,953,068 W— 37,581 W— 4,093,331 W— 4,031,751

W— (2,578,938) W— (169,753)

F-67

(2008)Outstanding contract

amount Gain (loss) on valuation Fair value

Type Trading Hedging Trading Hedging Assets Liabilities

(Currency derivatives) ..............

Currency forwards..................... W— 74,611,728 W— — W— 5,519,233 W— — W— 5,583,412 W— 4,415,939

(4,404,332) —

Currency swaps ......................... 18,651,954 — 1,221,111 — 1,066,494 2,501,477

(2,699,826) —

Currency futures ....................... 2,702,239 — — — — —

Currency options purchased....... 6,936,885 — 1,218,285 — 1,599,081 —

(34,581) —

Currency options sold ............... 7,489,959 — 6,528 — — 619,833

(543,847) —

(Interest derivatives) ................

Interest rate swaps .................... 62,782,279 6,603,623 1,615,437 319,823 1,827,334 2,053,683

(1,966,590) (98,744)

Interest rate futures ................... 333,851 — — — — —

Interest rate options purchased .. 7,377,875 — 168,577 — 218,680 —

(43,124) —

Interest rate options sold ........... 3,395,736 — 15,417 — — 88,430

(71,876) —

(Equity derivatives) .................

Equity swaps ............................. 9,754 — 254 — 234 230

(229) —

Equity futures ........................... 23,996 — — — — —

Equity options purchased .......... 1,040,094 — 178,126 — 266,097 —

(23,208) —

Equity options sold ................... 1,814,466 — 148,012 — — 422,704

(47,863) —

(Credit derivatives) ..................

Credit derivatives sold .............. 880,250 — — —

(368,323) — — 482,594

(Commodity derivatives) ..........

Commodity forward .................. 753,768 — 115,466 — 115,466 136,506

(135,325) —

Commodity swaps ..................... 58,239 — 127,753 — 3,768 3,639

(127,045)

Commodity option purchased .... 1,261,247 — 92,795 — 232,651 —

(99,469) —

Commodity option sold ............. 1,364,279 — 56,469 — — 194,930

(19,855) —

(Other) .....................................

Other swaps .............................. 357,703 — 123,985 — 123,985 123,406

(123,406) —

W—191,846,302 W— 6,603,623 W— 10,607,448 W— 319,823 W—11,037,202 W—11,043,371

(10,708,899) (98,744)

The Bank uses various derivative instruments for its trading activities, including interest rate and foreign exchangeswaps, futures, forwards and options, to manage the interest rate characteristics of certain assets or liabilities and toeconomically hedge against the effects of fluctuations in interest rates or foreign exchange rates.

In addition, the Bank had derivative instruments accounted for as fair value hedges. Hedged items, to which fair valuehedge accounting was applied, consisted of securities, loans and debentures issued and hedging derivative instrumentssuch as interest rate swaps, were used to cover exposures to changes in fair value of hedged items resulting from currencyor interest rate changes.

F-68

Gain and loss on valuation of fair value hedge items for the years ended December 31, 2009 and 2008 was as follows(Unit: Korean Won in millions):

2009 2008

Gain onvaluation of

fair valuehedged items

Loss onvaluation of


Gain onvaluation of


Loss onvaluation of


Securities ....................................................... W— 5,003 W— 65,885W— 65,467 W— 61,592

Loans............................................................. — 1,815 900 281

Debentures ..................................................... 175,154 26,125 31,080 339,490

W— 180,157 W— 93,825 W— 97,447 W— 401,363

(2) Credit derivatives

The Bank’s outstanding contract amount related to credit derivatives consists of Credit Default Swap (“CDS”) amountingto W— 291,900 million (US$ 250 million), of which the underlying assets are CDO, and CDS amounting to W— 291,900million (US$ 250 million), of which the underlying assets are individual companies (KT Corporation) and public bonds,respectively. The Bank records these contracts as credit derivatives sold at fair value. Credit derivatives as of December31, 2009 and 2008, gains and losses for the years ended December 31, 2009 and 2008 were as follows (Unit: Korean Wonin millions):

(2009) Underlying assets

TotalCDO

Individualcompanies andpublic bonds

Derivative instruments liabilities ............................................... W— 197,716 W— 244 W— 197,960

Gain on valuation of derivatives ................................................ 70,006 12,548 82,554

Loss on transaction of derivatives ............................................. 69,388 — 69,388

Gain on transaction of derivatives ............................................. 78,321 182 78,503

(2008) Underlying assets

TotalCDO

Individualcompanies and

publicbonds

Derivative instruments liabilities ............................................... W— 469,802W— 12,792 W— 482,594

Loss on valuation of derivatives ................................................ 355,696 12,627 368,323

Loss on transaction of derivatives ............................................. 73,291 — 73,291

Gain on transaction of derivatives ............................................. 3,175 — 3,175

F-69

27. EMPLOYEE BENEFITS

(1) Employee benefit expenses in 2009 and 2008 were as follows (Unit: Korean Won in millions):

2009 2008

Employee welfare benefit funds ............................................................................ W— — W— 23,000

National pension contributions .............................................................................. 25,983 25,573

Recreation............................................................................................................. 94,820 94,731

National health insurance premium ....................................................................... 27,872 28,339

Transportation expenses ........................................................................................ 28,749 28,326

Unemployment insurance premium ........................................................................ 13,196 11,636

Condolence ........................................................................................................... 4,798 5,092

Medical examination ............................................................................................. 5,100 4,870

Workers accident compensation insurance ............................................................. 4,153 3,720

Other .................................................................................................................... 19,908 20,782

W— 224,579 W— 246,069

28. EXPERT TRAINING EXPENSES AND INFORMATION ON VALUE ADDED

(1) In 2009 and 2008, the Bank paid W—9,022 million and W—8,921 million, respectively, for expert training of itsemployees to local and foreign training institutes.

(2) Accounts required for computation of value added for the years ended December 31, 2009 and 2008 were as follows(Unit: Korean Won in millions):

2009 2008

Salaries, employee benefits and provision for severance benefits .......................... W— 1,211,589 W— 1,223,832

Rent ...................................................................................................................... 144,551 145,556

Depreciation ......................................................................................................... 85,441 93,517

Tax and dues......................................................................................................... 92,496 112,529

W— 1,534,077 W— 1,575,434

29. STATEMENTS OF CASH FLOWS

(1) The cash and due from banks in the statements of cash flows for the years ended December 31, 2009 and 2008werefollows (Unit: Korean Won in millions):

2009 2008

Cash and due from banks ...................................................................................... W— 16,423,076 W— 14,991,465

Restricted cash and due from banks ...................................................................... (4,595,804) (10,197,835)

W— 11,827,272 W— 4,793,630

(2) Material transactions not involving cash inflows and outflows in 2009 and 2008 were as follows (Unit: Korean Won inmillions):

2009 2008

Write-offs of loans ................................................................................................ W— 1,289,586 W— 383,460

Changes in accumulated other comprehensive income (loss) due to the valuationof available-for-sale securities .......................................................................... 460,326 1,056,461

Decrease in investments on equity-method due to dividend declared ..................... — 3,053

F-70

30. TRUST ACCOUNTS

(1) Classification of trust accounts

The Bank manages 19 monetary trust and three property trusts. General Unspecified Monetary Trusts, InstallmentSavings Trust (Guaranteed) and Development Trust guarantee a fixed rate of return on, and the repayment ofprincipal. Old-age Pension Trusts, New Old-age Pension Trust, Personal Pension Trusts, New Personal Trusts,Pension Trusts and Retirement Trusts guarantee the repayment of principal. Household monetary Trusts,Corporation Monetary Trusts and Installment Savings Trust (Performance) guarantee the repayment of principalonly to customers who executed trust contracts prior to April 30, 1996. The other trusts are performance-basedtrusts.

Pursuant to the related regulations, new trust contracts of the types “General Unspecified Monetary Trusts” and“Installment Savings Trusts (Guaranteed)” have not been allowed since January 1, 1996 and new trust contractsof the type “Development Trusts” have not been allowed since January 1, 1999. In addition, new trust contractsof the type “Retirement Trust” have not been allowed since December 1, 2005.

With respect to any unspecified monetary trusts wherein debentures are not marked to market, new contracts havenot been allowed since July 1, 2000. Specified Monetary Trusts and Retirement Pension Trust are individuallymanaged and are performance-based trusts.

(2) As of December 31, 2009 and 2008, assets and liabilities of the trust accounts that guarantee a fixed rate of returnon, and/or the repayment of, principal consisted of the following (Unit: Korean Won in millions):

(2009)

Trustaccounts

guaranteeinga fixed rate

of return on,and the

repayment ofprincipal

Trustaccounts

guaranteeingthe


Mixed trustaccounts

Performance-based trust

accounts Total

Cash and due from banks ................ W— — W— 67,200 W— 3,400 W— 1,262,945 W— 1,333,545

Securities ........................................ 9,875 1,554,508 26,593 1,757,235 3,348,211

Loans.............................................. 64 51,895 1,305 629 53,893

Privately placed bonds .................... — — — — —

Bonds purchased under resaleagreements.................................. — — — 1,740,000 1,740,000

Money receivables .......................... — — — 721,349 721,349

Personal and real property .............. — — — 9,059,300 9,059,300

Other assets .................................... 1,605 15,780 748 401,943 420,076

Due from the bank accounts of theBank ........................................... 3,113 164,334 2,431 2,244,827 2,414,705

Allowance for possible creditlosses.......................................... (2,613) (10) (4) (31) (2,658)

Total assets ................................. W— 12,044 W— 1,853,707 W— 34,473 W— 17,188,197 W— 19,088,421

Monetary trusts ............................... W— 906 W— 1,766,182 W— 33,058 W— 6,846,712 W— 8,646,858

Property in trusts ............................ — — — 10,261,205 10,261,205

Other liabilities ............................... 11,137 51,052 728 80,280 143,197

Special reserve................................ 1 36,473 687 — 37,161

Total liabilities ............................ W— 12,044 W— 1,853,707 W— 34,473 W— 17,188,197 W— 19,088,421

F-71

(2008)

Trustaccounts

guaranteeinga fixed rate

of return on,and the


Trustaccounts

guaranteeingthe


Mixed trustaccounts

Performance-based trust

accounts Total

Cash and due from banks ................ W— — W— 152,742 W— 3,000 W— 4,296,550 W— 4,452,292

Securities ........................................ 14,213 1,325,808 29,091 2,937,512 4,306,624

Loans.............................................. 122 86,204 1,587 63,929 151,842

Privately placed bonds .................... — — — 11,657 11,657

Bonds purchased with resaleagreements.................................. — — — 1,280,000 1,280,000

Money receivables .......................... — — — 1,166,518 1,166,518

Personal and real property .............. — — — 9,375,426 9,375,426

Other assets .................................... 1,625 28,241 839 461,439 492,144

Due from the bank accounts of theBank ........................................... 43,639 283,149 5,300 3,257,273 3,589,361

Allowance for possible creditlosses.......................................... (3,255) (42) (9) (43) (3,349)

Total assets ................................. W— 56,344 W— 1,876,102 W— 39,808 W— 22,850,261 W— 24,822,515

Monetary trusts ............................... W— 920 W— 1,798,926 W— 38,061 W— 11,433,937 W— 13,271,844

Property in trusts ............................ — — — 11,306,896 11,306,896

Other liabilities ............................... 55,423 43,725 1,015 109,428 209,591

Special reserve................................ 1 33,451 732 — 34,184

Total liabilities ............................ W— 56,344 W— 1,876,102 W— 39,808 W— 22,850,261 W— 24,822,515

(3) As of December 31, 2009 and 2008, the difference between the carrying value and the fair value of trust accounts withagreement to guarantee the principal amount or the fixed dividend and the amount that should be covered by the inherentaccount were as follows (Unit: Korean Won in millions):

2009

Monetary trustsCarrying

value Fair value

Subsidyfor trustaccounts

Trust accounts guaranteeing the repayment ofprincipal .................................................... Old-age Pension Trusts (*) W— 12,449 W— — W— —

Personal Pension Trusts (*) 649,377 — —

Pension Trusts 396,416 396,416 —

Retirement Trusts 763,259 763,259 —

New Personal Pension Trusts 12,099 12,099 —

New Old-age Pension Trusts 20,107 20,107 —

1,853,707 1,191,881 —

Trust accounts guaranteeing a fixed rate ofreturn on, and the repayment of principal .. Development Trusts (*) 11,056 — —

Unspecified Money Trusts (*) 987 — 13

12,043 — 13

W—1,865,750 W—1,191,881 W— 13

F-72

2008

Monetary trustsCarrying

value Fair value

Subsidyfor trustaccounts

Trust accounts guaranteeing the repayment ofprincipal .................................................... Old-age Pension Trusts (*) W— 14,799 W— — W— —

Personal Pension Trusts (*) 666,746 — —

Pension Trusts 334,259 334,259 —

Retirement Trusts 820,177 820,177 —

New Personal Pension Trusts 11,215 11,215 —

New Old-age Pension Trusts 28,906 28,906 —

1,876,102 1,194,557 —

Trust accounts guaranteeing a fixed rate ofreturn on, and the repayment of principal .. Development Trusts (*) 55,347 — —

Unspecified Money Trusts (*) 997 — 23

56,344 — 23

W—1,932,446 W—1,194,557 W— 23

(*) Not subject to fair value valuation

31. LOANS TO KUMHO GROUP

Kumho Industrial Co., Ltd. and Kumho Tire Co., Inc. asked for work-out to creditors for business normalization onDecember 30, 2009. As of January 6, 2010, the work-out has started by the creditors’ committee. The Bank’s total loansand receivables as of December 31, 2009 amounted to W—1,998 billion and W—345 billion, respectively. The Bank recordedW—343 billion of allowance for doubtful accounts for the loans and receivables above as of December 31, 2009. However,due to uncertainties with work-out, allowance for doubtful accounts may differ from actual losses.

32. ADOPTION OF KOREAN INTERNATIONAL FINANCIAL REPORTING STANDARDS

(1) Adoption of Korean International Finance Reporting Standard

In accordance with the amendment to the Act on External Audit for Stock Companies, the Bank is required to complywith Korean financial reporting standard (“K-IFRS”) from 2011. From July 2007, the Bank initiated the transitionprocess toward K-IFRS by adopting systematic approach, such as analyzing IFRS impact on current accounting,establishing new accounting standards and financial reporting system, and simultaneously operating K-IFRS adoptedfinancial reporting system and current reporting system.

In July 2008, the Bank established the overall transition plans toward K-IFRS, and is in the process of designing andimplementing the new accounting framework and financial reporting system. The Bank is to disclose its financialstatements under K-IFRS from 2011.

(2) The expected important issues on differences between the current accounting process and the adoption of K-IFRS

The expected important issues on differences between the current accounting process and the adoption of K-IFRS as ofDecember 31, 2009 are summarized below. Such divergence does not include every single difference that would vary withthe result of a supplementary analysis. Moreover, the detailed effects of the important differences may not figure out inbusiness practice.

Classification K-IFRS Current accounting Standards

Consolidation scope Exceeding 50% of shares, decision-makingcapability and holding benefits and risks areconditional on the alternatives of theconsolidation scope.

Over 30% of shares owned and the biggestshareholder decision making are subject tothe alternatives. Companies that have aspecial purpose that only some factors aresatisfied are excluded.

F-73

Classification K-IFRS Current accounting Standards

Business combinations Acquisition method Purchase accounting and pooling interestmethod

Evaluation of goodwill Impairment test figures out the recognition ofimpairment amount.

Straight line method within 20 years

Allowance for baddebts

The estimated incurred loss is adopted ofwhich the reason is objectively supported.

It provides an allowance for doubtfulaccounts to cover estimated losses on loan,based on rational and unbiased standards.

Classification offinancialinstruments

Financial instruments classify financial assetsat fair value through profit or loss, available-for-sale financial assets, held-to-maturityinvestments, loan and receivables.

Securities are classified by trading securities,available-for-sale securities and held-to-maturity securities. Deposits and derivativesare separately categorized.

Measurement offinancialinstruments

The fair-value evaluation reflects credit risks. The fair-value evaluation is targeted totrading securities, available-for-salesecurities and derivatives, which are limited.The reflection of credit risk is notmentioned. Cost is amortized over theremaining terms of the securities by applyingthe effective interest method.

De-recognition offinancial assets

The disposal of financial assets is contingenton the risks and rewards of ownership of thefinancial assets, and whether it has retainedcontrol of the financial assets.

The disposal of financial assets is contingenton the risks and rewards of ownership of thefinancial assets, and whether it has retainedcontrol of the financial assets. However,some particular transactions like the assetbacked method are recognized as disposal.

Classification ofcapital

Capital is categorized by contents of thecontract rather than the legal forms.

Capital is classified as a legal capital whichshareholders paid.

Classification ofinvestment property

Property (land or building) to earn rentals istreated as investment property.

Property (land or building) to earn rentals istreated as tangible assets.

Evaluation of tangibleasset andinvestment property

In accordance with asset classifications, theasset cost method and asset revaluationreserves are selected as alternative. Inaddition, cost method is a selective option.However, the Bank can use fair value asdeemed cost for the convertible basic priceof an item of land and buildings.

In accordance with asset classifications, theasset cost method and asset revaluationreserves are selected as alternative.

Measurement ofaccrued severancebenefits

In accordance with the concept of estimatedaccumulation rate per unit using the actuarialtechnique and discount rate, calculate forcurrent value of the estimated amount ofseverance pay, and the outcome is applied asthe amount of the liability of severance pay.

In accordance with the Bank’s policy, allemployees with more than one year ofservice are entitled to receive severancebenefit payments upon termination.

F-74

33. MANAGEMENT IMPROVEMENT PLAN

(1) Agreement on the implementation of the management improvement plan with KDIC

On December 30, 2000, the Bank and KDIC entered into an agreement for the implementation of a business normalizationplan for the Bank. Pursuant to the agreement, the Bank received W—2,764 billion from KDIC as investment in the Bank’scommon stock on December 30, 2000 and the Bank received additional contribution of W—1,877 billion on September 30,2001. Based on the agreement, the Bank is obligated to meet non-financial and financial ratio targets, which consist ofcapital adequacy ratio, return on total assets, expense to revenue ratio (administrative and general expenses to adjustedoperation income), operating income per employee (adjusted operating income to number of employees) and net NPLratio (credits classified as substandard or below to credits). If the Bank fails to implement the agreement, KDIC mayorder the Bank to increase or decrease its capital, pursue a merger, assign contracts such as loans and deposits, or closeor sell a part of its business operations.

(2) Agreement on the implementation of the business plan with the WFH

As agreed with KDIC, on July 12, 2001, the Bank and WFH entered into an agreement for the implementation of abusiness plan for the Bank. Pursuant to the agreement, the Bank shall meet management goals provided by WFH, consultwith WFH on material business decision before execution, prepare and implement a detailed business plan in conformitywith the WFH’s business strategies. If the Bank fails to implement the business plan, WFH may order the Bank to limitsales of the specific financial items, investments in fixed assets, promotion to new business, or new equity investment,close or merge its branch operations.

34. THE MAJOR INDICATORS OF THE 4TH QUARTER

Major indicators for management performance for the 4th quarter period in 2009 and 2008 (unaudited) were as follows(Unit: Korean Won in millions, except for income per share):

4th quarter -2009

4th quarter -2008

(Unaudited)Operating revenue ................................................................................................. W— 6,150,155 W— 34,895,627

Operating expenses ............................................................................................... 5,890,595 35,541,358

Operating income (loss) ........................................................................................ 259,560 (645,731)

Income (loss) before income tax ........................................................................... 262,278 (663,033)

Net income (loss).................................................................................................. 204,226 (690,928)

Controlling interest ............................................................................................... 204,037 (691,137)

Minority interests.................................................................................................. 189 209

Net income (loss) per share .................................................................................. W— 293 W— (1,087)

F-75

THE ISSUER

Woori Bank203 Hoehyon-dong, 1-ga,

Chung-guSeoul 100-051

Korea

ISSUING AND PRINCIPAL PAYING AGENT

Deutsche Bank AG, London BranchTrust & Securities Services

Winchester House1 Great Winchester Street

London EC2N 2DBUnited Kingdom

REGISTRAR AND EXCHANGE AGENT

Deutsche Bank Trust Company Americas60 Wall Street � 27th FloorNew York, New York 10005

U.S.A.

LEGAL ADVISERSTo the Issuer as to Korean law

Kim & Chang3F Northgate Building

66 Juksun-dongChongro-Ku

SeoulKorea 110-052

To the Dealers as to English law

Cleary Gottlieb Steen & Hamilton LLP

39/F Bank of China TowerOne Garden Road

CentralHong Kong

AUDITORS

Deloitte Anjin LLC23rd Floor, Hanwha Securities Building

23-5 Yeouido-dongYeongdeungpo-gu

Seoul 150-717Korea

DEALERS

Barclays Bank PLC5 The North Colonnade

Canary WharfLondon E14 4BBUnited Kingdom

BNP Paribas10 Harewood Avenue

London NW1 6AAUnited Kingdom

Citigroup Global Markets LimitedCitigroup Centre

33 Canada Square, Canary WharfLondon E14 5LBUnited Kingdom

Crédit Agricole Corporate Investment Bank27/F Two Pacific Place

88 Queensway, AdmiraltyHong Kong

Credit Suisse Securities (Europe) LimitedOne Cabot SquareLondon E14 4QJUnited Kingdom

Daiwa Capital Markets Singapore Limited6 Shenton Way #26-08

DBS Building Tower TwoSingapore 068809

Deutsche Bank AG, Singapore BranchOne Raffles Quay

# 17-00 South TowerSingapore 048583

Goldman Sachs InternationalPeterborough Court

133 Fleet StreetLondon EC4A 2BB

United Kingdom

The Hongkong and Shanghai BankingCorporation Limited

Level 17, HSBC Main Building1 Queen’s Road Central

Hong Kong

J.P. Morgan Securities Ltd.125 London Wall

London EC2Y 5AJUnited Kingdom

Merrill Lynch International2 King Edward Street

London EC1A 1HQUnited Kingdom

Morgan Stanley & Co. International plc25 Cabot Square

Canary WharfLondon E14 4QAUnited Kingdom

Nomura International plcNomura House

1 St Martin’s-le-GrandLondon EC1A 4NP

United Kingdom

The Royal Bank of Scotland plc135 Bishopsgate

London EC2M 3URUnited Kingdom

UBS AG52/F Two International Finance Centre

8 Finance StreetCentral, Hong Kong

Woori Investment & Securities Co., Ltd.9F, Woori Investment & Securities Building

23-4, Yeouido-dong, Yeongdeungpo-guSeoul 150-725

Korea

Documents

Global Medium-Term Note Programme