Hcc 201909 eng_report

Hyundai Card Co., Ltd. and
Subsidiaries
Consolidated Interim Financial Statements
September 30, 2019 and 2018

Hyundai Card Co., Ltd. and Subsidiaries
Index
September 30, 2019 and 2018
Page(s)
Report on Review of Interim Financial Statements ............................................. 1 - 2
Consolidated Interim Financial Statements
Consolidated Interim Statements of Financial Position ............................................ 3 - 4
Consolidated Interim Statements of Comprehensive Income .................................... 5
Consolidated Interim Statements of Changes in Equity............................................. 6
Consolidated Interim Statements of Cash Flows....................................................... 7
Notes to the Consolidated Interim Financial Statements ......................................... 8 - 58

Report on Review of Interim Financial Statements
(English Translation of a Report Originally Issued in Korean)
To the Board of Directors and Shareholders of
Hyundai Card Co., Ltd.
Reviewed Financial Statements
We have reviewed the accompanying consolidated interim financial statements of Hyundai Card Co., Ltd.
and its subsidiaries (collectively referred to as the “Group”). These financial statements consist of the
consolidated interim statement of financial position of the Group as at September 30, 2019, and the
consolidated interim statements of comprehensive income for the three-month and nine-month periods
ended September 30, 2019 and 2018, and consolidated interim statements of changes in equity and cash
flows for the nine-month periods ended September 30, 2019 and 2018, and a summary of significant
accounting policies and other explanatory notes, expressed in Korean won.
Management's Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these consolidated interim
financial statements in accordance with International Financial Reporting Standards as adopted by the
Republic of Korea (Korean IFRS) 1034 Interim Financial Reporting, and for such internal control as
management determines is necessary to enable the preparation of consolidated interim financial
statements that are free from material misstatement, whether due to fraud or error.
Auditor's Responsibility
Our responsibility is to issue a report on these consolidated interim financial statements based on our
review.
We conducted our review in accordance with quarterly or semi-annual review standards established by
the Securities and Futures Commission of the Republic of Korea. A review of interim financial information
consists of making inquiries, primarily of persons responsible for financial and accounting matters, and
applying analytical and other review procedures. A review is substantially less in scope than an audit
conducted in accordance with Korean Standards on Auditing and consequently does not enable us to
obtain assurance that we would become aware of all significant matters that might be identified in an
audit. Accordingly, we do not express an audit opinion.

Conclusion
Based on our review, nothing has come to our attention that causes us to believe the accompanying
consolidated interim financial statements are not presented fairly, in all material respects, in accordance
with Korean IFRS 1034 Interim Financial Reporting.
Other Matters
We have audited the consolidated statement of financial position of the Group as at December 31, 2018,
and the related consolidated statements of comprehensive income, changes in equity and cash flows for
the year then ended, in accordance with Korean Standards on Auditing. We expressed an unqualified
opinion on those financial statements, not presented herein, in our audit report dated March 4, 2019. The
consolidated statement of financial position as at December 31, 2018, presented herein for comparative
purposes, is consistent, in all material respects, with the above audited statement of financial position as
at December 31, 2018.
Review standards and their application in practice vary among countries. The procedures and practices
used in the Republic of Korea to review such financial statements may differ from those generally
accepted and applied in other countries.
November 13, 2019
Seoul, Korea
This report is effective as of November 13, 2019, the review report date. Certain subsequent events
or circumstances, which may occur between the review report date and the time of reading this
report, could have a material impact on the accompanying consolidated interim financial statements
and notes thereto. Accordingly, the readers of the review report should understand that there is a
possibility that the above review report may have to be revised to reflect the impact of such
subsequent events or circumstances, if any.
2

Consolidated Interim Statements of Financial Position
September 30, 2019 and December 31, 2018
(in Korean won) Notes
Assets
Cash and deposits 5,24,29,30
Cash and cash equivalents ￦ 949,335,386,264 ￦ 866,456,158,726
Deposits 112,095,357,221 81,020,600,000
1,061,430,743,485 947,476,758,726
Securities 6,29,30
Financial assets at fair value through profit or loss 876,593,941,273 1,062,236,051,228
Financial assets at fair value through
other comprehensive income 1,483,575,000 1,483,575,000
878,077,516,273 1,063,719,626,228
Card assets 7,8,26,27,29,30
Card receivables 9,763,266,889,208 8,944,174,092,584
Provision for impairment (134,387,377,421) (136,445,744,103)
Short-term card loan 656,070,786,944 672,551,582,786
Long-term card loan 3,799,988,419,437 3,760,950,975,776
13,808,901,848,711 12,978,385,812,653
Loan receivables 7,8,29,30
Loan receivables 6,874,112,851 20,237,677,918
Provision for impairment (327,469,285) (1,117,573,780)
6,546,643,566 19,120,104,138
Property and equipment 9,26
Land 139,408,257,581 139,408,257,581
Buildings 148,420,929,281 148,387,377,420
Accumulated depreciation (24,192,725,912) (21,396,434,154)
Vehicles 2,514,088,391 2,514,088,391
Accumulated depreciation (915,212,680) (794,289,535)
Fixtures and equipment 246,583,092,521 242,327,218,894
Accumulated depreciation (191,911,594,909) (175,774,946,955)
Construction in progress 954,439,858 3,599,566,560
320,861,274,131 338,270,838,202
Assets held for sale
Land - 1,727,335,826
Buildings - 3,975,627,372
- 5,702,963,198
Other assets
Other receivables 29,30 117,059,553,822 98,918,681,647
Provision for impairment (266,308,540) (262,506,636)
Accrued revenue 29,30 44,878,141,025 48,589,739,174
Advance payments 48,867,828,750 29,862,799,219
Provision for impairment (229,920,802) (197,016,013)
Prepaid expenses 93,598,791,915 122,876,559,542
Intangible assets 10,26 95,438,600,296 106,586,305,737
Right-of-use assets 34 46,968,027,268 -
Derivative assets 14,28,29,30 59,116,025,069 2,793,189,773
Deferred tax assets 23 162,540,424,381 147,563,840,293
Guarantee deposits provided 5,29,30 26,522,441,716 32,713,839,922
Others 9,320,887,321 5,758,089,606
701,956,641,189 593,103,852,396
Total assets ￦ 16,777,774,667,355 ￦ 15,945,779,955,541
December 31, 2018September 30, 2019
(Unaudited)
3

Consolidated Interim Statements of Financial Position
September 30, 2019 and December 31, 2018
(in Korean won)
Liabilities
Borrowings 11,25,29,30
Borrowings ￦ 2,745,000,000,000 ￦ 3,015,000,000,000
Debentures 8,372,277,601,945 7,498,362,444,609
11,117,277,601,945 10,513,362,444,609
Other liabilities
Other payables 26,29,30 1,515,700,386,546 1,312,587,488,460
Accrued expenses 29,30 126,244,981,809 161,108,908,877
Unearned revenue 378,948,947,696 363,515,010,711
Withholdings 29,30 123,288,752,034 209,863,467,921
Advance received 84,957,300 -
Lease liabilities 26,29,30,34 44,652,223,992 -
Derivative liabilities 14,28,29,30 28,216,453,594 46,799,148,674
Current tax liabilities 46,915,454,666 24,283,650,805
Deferred tax liabilities - 5,688,074
Net employee benefit liabilities 12 3,971,524,579 1,449,519,669
Guarantee deposits received 29,30 10,115,031,035 9,997,529,270
Provisions 13,25 107,600,771,569 111,699,625,804
2,385,739,484,820 2,241,310,038,265
Total liabilities 13,503,017,086,765 12,754,672,482,874
Equity
Share capital 15 802,326,430,000 802,326,430,000
Reserves 57,704,443,955 57,704,443,955
Hybrid securities 15 299,239,980,000 299,239,980,000
Accumulated other comprehensive income 17 (50,239,749,536) (23,455,255,045)
Retained earnings 16,18 2,165,726,476,171 2,055,291,873,757
Total equity 3,274,757,580,590 3,191,107,472,667
Total liabilities and equity ￦ 16,777,774,667,355 ￦ 15,945,779,955,541
The above consolidated interim statements of financial position should be read in conjunction with the accompanying notes.
The consolidated interim statement of financial position as at December 31, 2018 has been prepared in accordance with Korean IFRS 1017, the previous standard.
(Unaudited)
September 30, 2019 December 31, 2018
4

Consolidated Interim Statements of Comprehensive Income
Three-Month and Nine-Month Periods Ended September 30, 2019 and 2018
Notes
Operating income
Card income 19,26 253,004,277,376 887,091,249,134 320,796,725,248 929,745,749,133
Effective interest method interest income 20 256,889,985,061 762,655,678,265 273,966,618,400 805,325,823,955
Gain on valuation and disposal of securities 621,087,224 3,218,519,702 856,857,514 2,542,203,616
Dividend income - 30,020,435 16,052,487 496,178,118
Decrease in provision for unused credit limits 13 - - 1,624,095,652 8,427,237,116
Other operating income 21,26 87,766,218,764 182,133,182,406 5,472,064,508 109,559,160,609
598,281,568,425 1,835,128,649,942 602,732,413,809 1,856,096,352,547
Operating expenses
Card expenses 19,26 165,690,087,172 589,140,146,525 218,836,619,241 654,654,462,634
Interest expenses 20 65,366,882,598 192,178,071,442 65,777,165,106 194,785,034,559
Selling and administrative expenses 12,22,26 169,168,894,475 497,273,692,321 187,994,966,221 552,910,770,798
Securitization expenses 326,528,569 729,137,711 172,470,462 624,496,525
Impairment losses 39,821,626,208 104,726,786,393 27,008,560,974 82,285,146,672
Loss on disposal of loan receivables 32,367,190,245 102,161,183,995 43,431,786,180 123,746,365,863
Increase in provision for unused credit limits 13 2,507,837,028 5,110,966,036 - -
Loss on valuation and disposal of securities - - 1,740,000 59,840,000
Other operating expenses 21,26 74,795,141,015 144,067,061,357 (4,792,403,921) 85,400,175,297
550,044,187,310 1,635,387,045,780 538,430,904,263 1,694,466,292,348
Operating profit 48,237,381,115 199,741,604,162 64,301,509,546 161,630,060,199
Non-operating income
Gain on disposal of property and equipment, and intangible assets 14,892,740 18,500,461 1,713,624 238,323,677
Gain on disposal of assets held for sale - 697,036,802 - -
Rental income 26 1,090,287,436 2,954,959,801 864,917,069 2,551,527,015
Miscellaneous gain 61,685,342 468,872,063 187,609,491 646,126,242
1,166,865,518 4,139,369,127 1,054,240,184 3,435,976,934
Non-operating expenses
Loss on disposal of property and equipment, and intangible assets 627,556 43,444,792 70,000 138,266,235
Donations 30,304,854 190,859,043 283,653,751 566,531,895
Miscellaneous losses - 1,975,953 - -
30,932,410 236,279,788 283,723,751 704,798,130
Profit before income tax expense 49,373,314,223 203,644,693,501 65,072,025,979 164,361,239,003
Income tax expense 23 19,376,021,533 51,825,756,175 14,614,806,849 36,513,870,259
Profit for the period 29,997,292,690 151,818,937,326 50,457,219,130 127,847,368,744
Other comprehensive income 17
Items that will not be reclassified to profit or loss
Remeasurements of net defined benefit liabilities (757,251,315) (3,282,487,403) (1,514,368,414) (3,521,819,237)
Items that may be subsequently reclassified to profit or loss
Cash flow hedges (5,898,100,569) (23,502,007,088) 1,780,769,217 (11,085,348,569)
(6,655,351,884) (26,784,494,491) 266,400,803 (14,607,167,806)
Total comprehensive income for the period 23,341,940,806 125,034,442,835 50,723,619,933 113,240,200,938
Earnings per share 31
Basic earnings per share 165 880 294 776
Diluted earnings per share 165 880 294 776
The consolidated interim statement of comprehensive income for the three-month and nine-month periods ended September 30, 2018 has been prepared in accordance with Korean IFRS 1017, the previous standard.
The above consolidated interim statements of comprehensive income should be read in conjunction with the accompanying notes.
Period Ended September 30
(in Korean won)
2019
(Unaudited)
2018
(Unaudited)
Three months Nine months Three months Nine months
5

Consolidated Interim Statements of Changes in Equity
Nine-Month Periods Ended September 30, 2019 and 2018
(in Korean won)
Balance at January 1, 2018 802,326,430,000 45,399,364,539 12,305,079,416 - (6,182,687,024) 2,016,527,869,168 2,870,376,056,099
Changes in accounting policies - - - - - (84,783,531,365) (84,783,531,365)
Restated total equity at the beginning of the financial year 802,326,430,000 45,399,364,539 12,305,079,416 - (6,182,687,024) 1,931,744,337,803 2,785,592,524,734
Dividends paid - - - - - (19,416,299,606) (19,416,299,606)
Total comprehensive income
Profit for the period - - - - - 127,847,368,744 127,847,368,744
Other comprehensive income
Remeasurements of net defined benefit liabilities - - - - (3,521,819,237) - (3,521,819,237)
Cash flow hedges - - - - (11,085,348,569) - (11,085,348,569)
Transactions with shareholders recognized directly in equity - - - - - - -
Issuance of hybrid securities - - - 299,239,980,000 - - 299,239,980,000
Distribution from hybrid securities - - - - - (3,333,423,913) (3,333,423,913)
Balance at September 30, 2018 (Unaudited) 802,326,430,000 45,399,364,539 12,305,079,416 299,239,980,000 (20,789,854,830) 2,036,841,983,028 3,175,322,982,153
Balance at January 1, 2019 802,326,430,000 45,399,364,539 12,305,079,416 299,239,980,000 (23,455,255,045) 2,055,291,873,757 3,191,107,472,667
Dividends paid - - - - - (30,809,334,912) (30,809,334,912)
Total comprehensive income
Profit for the period - - - - - 151,818,937,326 151,818,937,326
Other comprehensive income
Remeasurements of net defined benefit liabilities - - - - (3,282,487,403) - (3,282,487,403)
Cash flow hedges - - - - (23,502,007,088) - (23,502,007,088)
Transactions with shareholders recognized directly in equity
Distribution from hybrid securities - - - - - (10,575,000,000) (10,575,000,000)
Balance at September 30, 2019 (Unaudited) 802,326,430,000 45,399,364,539 12,305,079,416 299,239,980,000 (50,239,749,536) 2,165,726,476,171 3,274,757,580,590
The consolidated interim statement of changes in equity for the nine-month period ended September 30, 2018 has been prepared in accordance with Korean IFRS 1017, the previous standard.
The above consolidated interim statements of changes in equity should be read in conjunction with the accompanying notes.
Retained
capital premium reserves securities comprehensive income earnings Total
Reserves Accumulated
Share Share Other Hybrid other
6

Consolidated Interim Statements of Cash Flows
Nine-Month Periods Ended September 30, 2019 and 2018
(in Korean won) Notes
Cash flows from operating activities
Cash generated from (provided by) operating activities 24 (144,909,956,841) 409,333,696,037
Interests received 18,966,421,736 18,870,042,855
Interests paid (165,055,113,480) (210,355,015,931)
Dividends received 30,020,435 496,178,118
Income taxes paid (35,566,714,780) (41,575,596,170)
Net cash inflow (outflow) from operating activities (326,535,342,930) 176,769,304,909
Cash flows from investing activities
Disposal of financial assets at fair value through profit or loss - 30,289,700
Disposal of assets held for sale 6,400,000,000 -
Disposal of property and equipment 19,625,000 245,159,806
Acquisition of financial assets at fair value through profit or loss (5,029,764,000) (2,635,550,000)
Acquisition of property and equipment (12,602,465,741) (26,030,917,530)
Acquisition of intangible assets (21,226,871,413) (23,048,246,945)
Net decrease in guarantee deposits provided 6,800,478,885 2,155,262,432
Net cash outflow from investing activities (25,638,997,269) (49,284,002,537)
Cash flows from financing activities
Proceeds from borrowings 1,715,000,000,000 2,235,000,000,000
Proceeds from issue of debentures 9,705,780,433,410 9,859,368,468,402
Repayment of borrowings (1,985,000,000,000) (1,905,000,000,000)
Repayment of debentures (8,946,039,997,696) (9,756,000,000,000)
Repayment of lease liabilities (13,030,807,815) -
Dividends paid (30,809,577,033) (19,416,299,606)
Issuance of hybrid securities - 299,239,980,000
Distribution from hybrid securities (10,575,000,000) -
Net cash inflow from financing activities 435,325,050,866 713,192,148,796
Net increase in cash and cash equivalents 83,150,710,667 840,677,451,168
(271,483,129) -
Cash and cash equivalents at the beginning of the period 24 866,456,158,726 654,412,163,620
Cash and cash equivalents at the end of the period 24 949,335,386,264 1,495,089,614,788
Nine-month period ended September 30
(Unaudited) (Unaudited)
The consolidated interim statement of cash flows for the nine-month period ended September 30, 2018
has been prepared in accordance with Korean IFRS 1017, the previous standard.
The above consolidated interim statements of cash flows should be read in conjunction with the accompanying notes.
2019 2018
Effects of exchange rate changes on cash and cash equivalents
denominated in foreing currency
7

Notes to the Consolidated Interim Financial Statements
September 30, 2019 and 2018 (Unaudited), and December 31, 2018
8
1. General Information
Hyundai Card Co., Ltd. (the Company or the Parent Company), which is a controlling company
in accordance with Korean International Financial Reporting Standards (“Korean IFRS”) 1110
Consolidated Financial Statements, is engaged in the credit card business with its
headquarters located at 3, Uisadang-daero, Yeongdeungpo-gu, Seoul. On June 15, 1995, the
Company acquired the credit card business of Korea Credit Circulation Co., Ltd., and on June
16, 1995, the Korean government granted permission to the Company to engage in the credit
card business. The Company operates its business under the Specialized Credit Financial
Business Act and other relevant applicable regulations.
As at September 30, 2019, the Company has approximately 8.33 million card members, 2.68
million registered merchants, and 53 marketing centers and branches.
As at September 30, 2019, the total ordinary shares of the Company is ￦802,326 million after
several capital increase and retirement of treasury shares. The shareholders as at September
30, 2019 and December 31, 2018, are as follows:
September 30, 2019 December 31, 2018
Number of
shares
Percentage of
ownership
Number of
shares
Percentage of
ownership
Hyundai Motor Co., Ltd. 59,301,937 36.96% 59,301,937 36.96%
Kia Motors Co., Ltd. 18,422,142 11.48% 18,422,142 11.48%
Hyundai Commercial Inc. 39,378,026 24.54% 39,378,026 24.54%
Consumer Preferred Choice Limited 16,046,527 9.99% 16,046,527 9.99%
Complete Logistic Solutions Limited 14,441,876 9.00% 14,441,876 9.00%
AlpInvest Partners Co-Investments 2015
I SPV B.V. 7,101,393 4.43% 7,101,393 4.43%
AlpInvest Partners Co-Investments 2015
II SPV B.V. 707,652 0.44% 707,652 0.44%
AlpInvest Mich SPV B.V. 214,221 0.14% 214,221 0.14%
Others 4,851,512 3.02% 4,851,512 3.02%
160,465,286 100.00% 160,465,286 100.00%

9
2. Significant Accounting Policies
2.1 Basis of preparation
The Group maintains its accounting records in Korean won and prepares statutory financial
statements in the Korean language (Hangul) in accordance with International Financial
Reporting Standards as adopted by the Republic of Korea (Korean IFRS). The accompanying
consolidated interim financial statements have been condensed, restructured and translated
into English from the Korean language financial statements.
Certain information attached to the Korean language financial statements, but not required for
a fair presentation of the Group's financial position, financial performance or cash flows, is not
presented in the accompanying consolidated interim financial statements.
The Group’s consolidated interim financial statements for the nine-month period ended
September 30, 2019, have been prepared in accordance with Korean IFRS 1034 Interim
Financial Reporting. These condensed consolidated interim financial statements have been
prepared in accordance with Korean IFRS which is effective or early adopted as at September
30, 2019.
(a) New standards and interpretations adopted by the Group
The Group has applied the following standards and interpretations for the first time for their
annual reporting period commencing January 1, 2019.
- Enactment of Korean IFRS 1116 Leases
Korean IFRS 1116 Leases replaces Korean IFRS 1017 Leases. Under Korean IFRS 1116,
with implementation of a single lease model, lessee is required to recognize assets and
liabilities for all lease which lease term is over 12 months and underlying assets are not low
value assets. A lessee is required to recognize a right-of-use asset and a lease liability
representing its obligation to make lease payments.
With implementation of Korean IFRS 1116 Lease, the Group has changed accounting policy.
The Group has adopted Korean IFRS 1116 retrospectively, as permitted under the specific
transitional provisions in the standard, and recognized the cumulative impact of initially
applying the standard as at January 1, 2019, the date of initial application. The Group has
not restated comparatives for the 2018 reporting period. The impact of the adoption of the
leasing standard and the new accounting policies are disclosed in Note 34.
- Amendments to Korean IFRS 1109 Financial Instruments
The narrow-scope amendments made to Korean IFRS 1109 Financial Instruments enable
entities to measure certain prepayable financial assets with negative compensation at
amortized cost. When a modification of a financial liability measured at amortized cost that
does not result in the derecognition, a modification gain or loss shall be recognized in profit

10
or loss. The amendment does not have a significant impact on the financial statements.
- Amendments to Korean IFRS 1019 Employee Benefits
The amendments require that an entity shall calculate current service cost and net interest
for the remainder of the reporting period after a plan amendment, curtailment or settlement
based on updated actuarial assumptions from the date of the change. The amendments also
require that a reduction in a surplus must be recognized in profit or loss even if that surplus
was not previously recognized because of the impact of the asset ceiling. The amendment
does not have a significant impact on the financial statements.
- Amendments to Korean IFRS 1028 Investments in Associates and Joint Ventures
The amendments clarify that an entity shall apply Korean IFRS 1109 to financial instruments
in an associate or joint venture to which the equity method is not applied. These include
long-term interests that, in substance, form part of the entity’s net investment in an associate
or joint venture. The amendment does not have a significant impact on the financial
statements.
- Enactment to Interpretation of Korean IFRS 2123 Uncertainty over Income Tax Treatments
The Interpretation explains how to recognize and measure deferred and current income tax
assets and liabilities where there is uncertainty over a tax treatment, and includes guidance
on how to determine whether each uncertain tax treatment is considered separately or
together. It also presents examples of circumstances where a judgement or estimate is
required to be reassessed. The enactment does not have a significant impact on the
financial statements.
- Annual Improvements to Korean IFRS 2015 – 2017 Cycle:
 Korean IFRS 1103 Business Combination
The amendments clarify that when a party to a joint arrangement obtains control of a
business that is a joint operation, and has rights to the assets and obligations for the
liabilities relating to that joint operation immediately before the acquisition date, the
transaction is a business combination achieved in stages. In such cases, the acquirer shall
remeasure its entire previously held interest in the joint operation. The amendment does not
have a significant impact on the financial statements.
 Korean IFRS 1111 Joint Agreements
The amendments clarify that when a party that participates in, but does not have joint control
of, a joint operation might obtain joint control of the joint operation in which the activity of the
joint operation constitutes a business. In such cases, previously held interests in the joint
operation are not remeasured. The amendment does not have a significant impact on the

11
 Paragraph 57A of Korean IFRS 1012 Income Tax
The amendment is applied to all the income tax consequences of dividends and requires an
entity to recognize the income tax consequences of dividends in profit or loss, other
comprehensive income or equity according to where the entity originally recognized those
past transactions or events. The amendment does not have a significant impact on the
 Korean IFRS 1023 Borrowing Costs
The amendments clarify that if a specific borrowing remains outstanding after the related
qualifying asset is ready for its intended use (or sale), it becomes part of general borrowings.
The amendment does not have a significant impact on the financial statements.
(b) New standards and interpretations not yet adopted by the Group
There are no new accounting standards and interpretations that have been published that
are not mandatory for annual reporting period commencing January 1, 2019 and have not
been early adopted by the Group.
2.2 Significant Accounting Policies
Significant accounting policies and method of computation used in the preparation of the
condensed consolidated interim financial statements are consistent with those of the
consolidated financial statements for the year ended December 31, 2018, except for the
changes due to the application of amendment and enactments of standards described in
Note 2.1. (a) and the one described below.
2.2.1 Income Tax Expense
Income tax expense for the interim period is recognized based on management’s best
estimate of the weighted average annual income tax rate expected for the full financial year.
The estimated average annual tax rate is applied to the pre-tax income.
2.2.2 Reclassification of Card Income and Others
In order to increase comparability with financial statements for the nine-month period ended
September 30, 2019, the Group recognized the serviced amount provided to card members
as a reduction of revenue, which was previously recognized as expenses in the consolidated
statement of comprehensive income for the nine-month period ended September 30, 2018 in
accordance with Korean IFRS 1115 Revenue from Contracts with Customers. The
reclassification has no effect on the reported net income and net assets for the nine-month
period ended September 30, 2018 (Note 19).

12
3. Critical Accounting Estimates and Assumptions
The Group makes estimates and assumptions concerning the future. Estimates and
assumptions are continually evaluated and are based on historical experience and other
factors, including expectations of future events that are believed to be reasonable under the
current circumstances. Actual results may differ from these estimates.
Significant accounting estimates and assumptions applied in the preparation of these
condensed consolidated interim financial statements are the same as those that applied to
the consolidated financial statements for the year ended December 31, 2018, except for the
changes due to the application of amendment and enactments of standards described in
Note 2.1 (a) and the estimates used to determine income tax expense.
4. Consolidated Subsidiaries
Details of the consolidated subsidiaries as at September 30, 2019 and December 31, 2018,
are as follows:
Ownership interest held by
the Group (%)
Main business Location
September
30, 2019
December 31,
2018
Closing
month
Super Series 1st SPC1 Asset securitization Korea - 0.5 December
Super Series 2nd SPC1 Asset securitization Korea 0.5 0.5 December
Super Series 3rd SPC1 Asset securitization Korea 0.5 0.5 December
Super Series 4th SPC1 Asset securitization Korea 0.5 0.5 December
Super Series 5th SPC1 Asset securitization Korea 0.5 0.5 December
Super Series 6th SPC1 Asset securitization Korea 0.5 - December
Super Series 7th SPC1 Asset securitization Korea 0.5 - December
Bluewalnut Co., Ltd. Electronic banking Korea 100.0 100.0 December
Money Market Trust Trust business Korea 100.0 100.0 -
1 In determining power over subsidiaries, except for Bluewalnut Co., Ltd. and Money Market
Trust, voting rights or similar rights are not major components. Accordingly, these subsidiaries
are considered as structured entities.
Above subsidiaries except for Money Market Trust and Bluewalnut Co., Ltd. are special
purpose companies (SPCs) that were established for business activities of consolidated
entities. The Parent Company, Hyundai Card Co., Ltd., is considered to have control over
SPCs as the Parent Company has involved in purpose and design of SPC establishments and
the Parent Company is exposed to certain risks and rewards of SPCs. Also, all the decision-
making processes of SPCs are operated on autopilot by arrangements and articles of
association, and the Parent Company has ability to make changes in arrangements and

13
articles of association. Accordingly, the Parent Company included SPCs under consolidation.
Meanwhile, in the event of non-payment arising from derivative contracts regarding asset-
backed securities issued by SPCs, counterparties of the derivative contracts can claim for
reimbursement from the Parent Company.
Details of the Group’s subsidiaries as at September 30, 2019 and December 31, 2018, are
as follows:
(in millions of Korean September 30, 2019
won)
Assets Liabilities
Operating
income
Profit (loss) for
the period
Comprehensive
income (loss)
Super Series 2nd SPC 8 - 2,631 - -
Super Series 3rd SPC 120,184 120,149 41,020 - (653)
Super Series 4th SPC 359,731 360,451 29,809 - (483)
Super Series 5th SPC 339,247 348,485 30,466 - (2,149)
Super Series 7th SPC 400,143 400,143 1,992 - -
Bluewalnut Co., Ltd. 41,187 21,683 14,209 (3,449) (3,449)
Money Market Trust 635,527 - 527 527 527
(in millions of Korean December 31, 2018
won)
Assets Liabilities
Operating
income
Profit (loss) for
the period
Comprehensive
income (loss)
Super Series 1st SPC 230,549 230,469 22,951 - 270
Super Series 2nd SPC 300,102 300,102 4,002 - -
Super Series 3rd SPC 467,595 466,704 22,485 - (819)
Super Series 4th SPC 341,611 341,694 17,215 - (888)
Bluewalnut Co., Ltd. 24,849 11,747 2,827 (2,432) (2,479)
Money Market Trust 840,235 - 1,053 1,053 1,053
Subsidiaries newly included during the nine-month period ended September 30, 2019:
Name of subsidiary Reason
Super Series 6th SPC Establishment
Super Series 7th SPC Establishment
Subsidiaries excluded from the consolidation during the nine-month period ended September
30, 2019:
Name of subsidiary Reason
Super Series 1st SPC Liquidation

14
Non-controlling interests
Non-controlling interests of consolidated special-purpose company (“SPC”) have been
measured at initial acquisition cost because they do not have any claim of residual income.
Also, the Group does not state non-controlling interests as capital, but as liability.
5. Restricted Financial Assets
Details of restricted financial assets as at September 30, 2019 and December 31, 2018, are
as follows:
(in millions of Korean won) September
30, 2019
December
31, 2018 Description
Cash and
deposits
Kookmin Bank and
others
18 18
Guarantee deposits for
overdraft
Shinhan Bank and
others
23,100 23,100 Secured deposits
Mirae Asset Securities - 3 Social enterprise fund
Shinhan Bank 1,500 1,500
Guarantee deposits for
overseas remittance
Citibank and others 143,551 103,372
Deposits related to
securitization
Other financial
assets
Korea Asset
Management
7,762 7,762
Escrow account in relation to a
sale of Daewoo Engineering
& Construction Co., Ltd.
175,931 135,755
6. Securities
Securities as at September 30, 2019 and December 31, 2018, are as follows:
(in millions of Korean won)
September 30,
2019
December 31,
2018
Financial assets at fair value through profit or loss
Debt securities 455,930 857,036
Equity securities 420,664 205,200
876,594 1,062,236
Financial assets at fair value through other
comprehensive income
Equity securities 1,484 1,484
878,078 1,063,720

15
7. Card Assets and Loan Receivables
Details of card assets and loan receivables by customers as at September 30, 2019 and
December 31, 2018, are as follows:
(in millions of September 30, 2019
Korean won)
Principal
Deferred
origination
cost and fee
Present
value of
discounts
Provision for
impairment
Carrying
amount
Card receivables
Household 8,999,112 (19,024) (18,321) (130,463) 8,831,304
Corporates 801,500 - - (3,925) 797,575
Short-term card loan
Household 656,071 - - (32,627) 623,444
Long-term card loan
Household 3,800,466 - (478) (243,410) 3,556,578
Loan receivables
Household 6,874 - - (327) 6,547
14,264,023 (19,024) (18,799) (410,752) 13,815,448
(in millions of December 31, 2018
Korean won)
Principal
Deferred
origination
cost and fee
Present
value of
discounts
Provision for
impairment
Carrying
amount
Card receivables
Household 8,249,979 (17,087) (13,428) (131,811) 8,087,653
Corporates 724,710 - - (4,634) 720,076
Short-term card loan
Household 672,551 - - (33,489) 639,062
Long-term card loan
Household 3,761,569 - (618) (229,356) 3,531,595
Loan receivables
Household 20,238 - - (1,118) 19,120
13,429,047 (17,087) (14,046) (400,408) 12,997,506

16
Changes in card assets and loan receivables which have significant impact on provisions for
impairment for the nine-month periods ended September 30, 2019 and 2018, are as follows:
(in millions of Korean won) 2019
Card receivables Short-term card loan
Lifetime expected credit
losses
losses
12-month
expected credit
losses
Not
impaired Impaired
12-month
expected credit
losses
Not
impaired Impaired
Beginning balance 7,968,398 994,173 12,118 502,124 165,843 4,585
Transfer between stages
Transfer to assets
measured at 12-month
expected credit losses 412,907 (412,755) (152) 32,759 (32,735) (24)
Transfer to assets
measured at lifetime
expected credit losses (469,796) 469,952 (156) (43,048) 43,048 -
Impairment (10,922) (6,655) 17,577 (3,606) (1,597) 5,203
New and removal 891,287 48,264 (1,702) 17,539 9,785 675
Written-off - - (8,959) - - (4,095)
Disposal and repurchase (50,170) (45,562) (7,235) (23,053) (14,763) (2,571)
Ending balance 8,741,704 1,047,417 11,491 482,715 169,581 3,773
2019
Long-term card loan Loan receivables
losses
losses
12-month
expected
credit losses
Not
impaired Impaired
12-month
expected
credit losses
Not
impaired Impaired Total
Beginning balance 2,974,942 613,327 173,300 18,849 1,327 62 13,429,048
Transfer to assets
expected credit losses 134,539 (134,472) (67) 679 (679) - -
Transfer to assets
expected credit losses (270,475) 270,691 (216) (674) 674 - -
Impairment (12,604) (5,699) 18,303 (50) (17) 67 -
New and removal 342,424 (183,030) 12,288 (12,166) (622) (18) 1,124,724
Written-off - - (10,626) - - (44) (23,724)
Disposal and repurchase (64,589) (45,556) (12,014) (295) (173) (44) (266,025)
Ending balance 3,104,237 515,261 180,968 6,343 510 23 14,264,023

17
losses
losses
12-month
expected credit
losses
Not
impaired Impaired
12-month
expected credit
losses
Not
impaired Impaired
Beginning balance 7,670,274 1,056,926 20,726 610,997 233,007 3,328
Transfer to assets
expected credit losses 421,168 (407,730) (13,438) 49,469 (49,465) (4)
Transfer to assets
expected credit losses (520,236) 520,338 (102) (63,474) 63,475 (1)
Impairment (8,205) (5,939) 14,144 (3,074) (1,680) 4,754
New and removal 70,822 9,484 (233) (49,312) (19,230) 1,342
Written-off - - (4,389) - - (2,107)
Ending balance 7,578,022 1,121,734 11,663 512,713 204,493 5,408
2018
Long-term card loan Loan receivables
losses
losses
12-month
expected
credit losses
Not
impaired Impaired
12-month
expected
credit losses
Not
Beginning balance 2,654,544 680,477 152,093 - - - 13,082,372
Transfer to assets
expected credit losses 127,221 (127,198) (23) - - - -
Transfer to assets
expected credit losses (340,126) 340,309 (183) - - - -
Impairment (9,845) (5,409) 15,254 - - - -
New and removal 392,241 (14,326) 15,118 14,631 2,122 3 422,662
Written-off - - (5,766) - - - (12,262)
Disposal and repurchase (68,525) (46,631) (8,947) - (28) - (291,733)
Ending balance 2,755,510 827,222 167,546 14,631 2,094 3 13,201,039

18
8. Provisions for Impairment of Card Assets and Loan Receivables
Changes in provisions for impairment of card assets and loan receivables for the nine-month
periods ended September 30, 2019 and 2018, are as follows:
losses
losses
12-month
expected credit
losses
Not
impaired Impaired
12-month
expected credit
losses
Not
impaired Impaired
Beginning balance 50,792 78,106 7,548 13,023 17,603 2,863
Transfer to assets
Transfer to assets
expected credit losses (5,680) 5,783 (103) (1,113) 1,113 -
Impairment (4,277) (3,343) 7,620 (2,329) (1,170) 3,499
Written-off - - (8,959) - - (4,095)
Recovered - - 627 - - 213
Additional (reversal of)
provisions (2,229) 32,008 3,805 6,733 6,340 1,265
Ending balance 52,733 74,463 7,191 12,976 17,258 2,393
(in millions of Korean 2019
won) Long-term card loan Loan receivables
losses
losses
12-month
expected
credit losses
Not
impaired Impaired
12-month
expected
credit losses
Not
Beginning balance 80,740 46,781 101,835 893 178 46 400,408
Transfer to assets
expected credit losses 11,753 (11,705) (48) 90 (90) - -
Transfer to assets
expected credit losses (7,434) 7,599 (165) (40) 40 - -
Impairment (5,631) (2,628) 8,259 (27) (13) 40 -
Written-off - - (10,626) - - (44) (23,724)
Recovered - - 627 - - - 1,467
Disposal and repurchase (16,408) (10,348) (6,798) (74) (41) (32) (72,330)
provisions 26,577 8,378 22,653 (587) (19) 7 104,931
Ending balance 89,597 38,077 115,737 255 55 17 410,752

19
losses
losses
12-month
expected credit
losses
Not
impaired Impaired
12-month
expected credit
losses
Not
impaired Impaired
Beginning balance1
49,988 80,856 4,092 16,205 24,410 1,724
Transfer to assets
Transfer to assets
expected credit losses (6,816) 6,874 (58) (1,793) 1,794 (1)
Impairment (2,204) (1,747) 3,951 (1,217) (722) 1,939
Written-off - - (4,389) - - (2,107)
Recovered - - 354 - - 151
Disposal and repurchase (10,311) (7,184) (1,750) (5,923) (3,056) (846)
provisions (10,894) 30,563 4,542 1,208 4,178 2,276
Ending balance 47,275 81,980 6,612 13,249 21,837 3,134
(in millions of Korean 2018
won) Long-term card loan Loan receivables
losses
losses
12-month
expected
credit losses
Not
impaired Impaired
12-month
expected
credit losses
Not
Beginning balance1
72,183 50,814 77,951 - - - 378,223
Transfer to assets
expected credit losses 9,919 (9,905) (14) - - - -
Transfer to assets
expected credit losses (9,727) 9,863 (136) - - - -
Impairment (3,044) (1,996) 5,040 - - - -
Written-off - - (5,766) - - - (12,262)
Recovered - - 294 - - - 799
Disposal and repurchase (12,459) (5,231) (4,189) - (1) - (50,950)
provisions 16,402 17,194 15,841 705 241 1 82,257
Ending balance 73,274 60,739 89,021 705 240 1 398,067
1 81,069 million was recognized in the beginning balance of provision for impairment due to
initial application of Korean IFRS 1109.

20
9. Property and Equipment
Changes in property and equipment for the nine-month periods ended September 30, 2019
and 2018, are as follows:
(in millions of 2019
Korean won)
Land Buildings Vehicles
Fixtures
and
equipment
Construction
-in-progress Total
Beginning balance 139,408 126,991 1,720 66,552 3,600 338,271
Acquisitions - 7 - 10,277 314 10,598
Reclassification - 26 - 2,619 (2,959) (314)
Disposal - - - (45) - (45)
Depreciation - (2,796) (121) (24,732) - (27,649)
Ending balance 139,408 124,228 1,599 54,671 955 320,861
Korean won)
Land Buildings Vehicles
Fixtures
and
equipment
Construction
-in-progress Total
Beginning balance 141,136 134,733 1,890 76,924 673 355,356
Acquisitions - 82 - 20,179 2,788 23,049
Reclassification - - - 241 (241) -
Disposal - - - (120) - (120)
Depreciation - (2,887) (130) (27,454) - (30,471)
Ending balance 141,136 131,929 1,760 69,770 3,219 347,814

21
10. Intangible Assets
Changes in intangible assets for the nine-month periods ended September 30, 2019 and 2018,
are as follows:
Korean won) Developm-
ent cost Software Others
Construction
-in-progress
Member-
ship Total
Beginning balance 63,138 14,789 118 8,730 19,811 106,586
Acquisitions 10,253 2,498 - 6,296 - 19,047
Reclassification 5,232 67 - (6,717) - (1,418)
Disposal - - - - - -
Amortization (23,068) (5,592) (116) - - (28,776)
Ending balance 55,555 11,762 2 8,309 19,811 95,439
Korean won) Developm-
ent cost Software Others
Construction
-in-progress
Member-
ship Total
Beginning balance 78,006 18,156 475 7,652 19,811 124,100
Acquisitions 9,610 3,870 - 3,506 - 16,986
Reclassification 3,974 473 5 (5,783) - (1,331)
Disposal (128) - (10) - - (138)
Amortization (24,545) (6,170) (265) - - (30,980)
Ending balance 66,917 16,329 205 5,375 19,811 108,637

22
11. Borrowings
Details of borrowings as at September 30, 2019 and December 31, 2018, are as follows:
(in millions of Korean won) Annual interest
rate (%)1
September
30, 2019
December
31, 2018
Short-term borrowings
Commercial Paper KEB Hana Bank and 6 others 1.99 ~ 2.30 545,000 545,000
Borrowings
Korea Development Bank and 4
others
2.28 ~ 2.88 240,000 470,000
785,000 1,015,000
Current portion of long-term borrowings
Commercial Paper BNK Securities and 7 others 1.62 ~ 2.35 1,180,000 250,000
Borrowings - - - 30,000
1,180,000 280,000
Long-term borrowings
Commercial Paper
KTB Investment Securities and 6
others
1.70 ~ 2.55 490,000 1,670,000
Borrowings NH Bank and 6 others 2.50 ~ 3.31 290,000 50,000
780,000 1,720,000
2,745,000 3,015,000
1 Interest rate after considering swaps
Details of debentures as at September 30, 2019 and December 31, 2018, are as follows:
(in millions of Korean won) Annual interest
rate (%)1 Maturity
September 30,
2019
December 31,
2018
Short-term debentures 1.56 2020.09.09 10,000 -
Current portion of debentures 1.47 ~ 3.68
2019.10.02~
2020.09.23
1,870,520 2,240,860
Long-term debentures 1.47 ~ 3.73
2020.10.13~
2029.07.10
6,498,897 5,264,679
8,379,417 7,505,539
Less: Discounts on debenture (7,139) (7,177)
8,372,278 7,498,362
1 Interest rate after considering swaps
The outstanding debenture is non-guaranteed corporate bonds, with their principals to be
redeemed either by installment or at maturity. Bond issuance costs are recorded as discounts
on debenture and amortized using the effective interest rate method.

23
12. Post-employment Benefits
12.1 Defined Contribution Plan
The expense recognized in the consolidated interim statements of comprehensive income
related to post-employment benefit under the defined contribution plan for the nine-month
periods ended September 30, 2019 and 2018, is as follows:
(in millions of Korean won) 2019 2018
Defined contribution plan 770 230
12.2 Net Employee Benefit Liabilities
Details of net employee benefit liabilities as at September 30, 2019 and December 31, 2018,
are as follows:
(in millions of Korean won) September 30, 2019 December 31, 2018
Net defined benefit liabilities (assets) (719) (2,765)
Long-term employee benefit liabilities 4,691 4,214
3,972 1,449
12.3 Defined Benefit Plan
General
The Group operates a defined benefit plan for qualified employees by applying average salary
over the past 3 months and length of service, etc. Plan assets mainly consist of deposits, and
are exposed to risk of lower interest rate.

24
Net defined benefit liabilities (assets)
Changes in present value of net defined benefit liabilities for the nine-month periods ended
September 30, 2019 and 2018, are as follows:
Present value
of the defined
benefit
obligation Plan assets
National
pension fund
Net defined
benefit
liabilities
Beginning balance 75,934 (78,685) (14) (2,765)
Contributions from the
employer - (10,880) - (10,880)
Current service cost 8,574 - - 8,574
Interest expense (income) 1,408 (1,410) - (2)
Return on plan assets
(excluding amounts
included in interest income) - 560 - 560
Actuarial loss from change
in financial assumptions 3,822 - - 3,822
Transfer of employees
between the Company and
its related companies (128) 152 - 24
Benefits paid (9,237) 9,184 1 (52)
Ending balance 80,373 (81,079) (13) (719)
Present value
of the defined
benefit
obligation Plan assets
National
pension fund
Net defined
benefit
liabilities
Beginning balance 89,944 (85,767) (16) 4,161
Contributions from the
employer - - - -
Current service cost 10,650 - - 10,650
Interest expense (income) 2,123 (1,963) - 160
Return on plan assets
(excluding amounts
included in interest income) - 1,013 - 1,013
Actuarial loss from change
in financial assumptions 3,669 - - 3,669
Transfer of employees
between the Company and
its related companies (265) 534 - 269
Benefits paid (8,963) 8,411 - (552)
Ending balance 97,158 (77,772) (16) 19,370

25
12.4 Long-term Employee Benefits
Changes in present value of long-term employee benefit liabilities for the nine-month periods
ended September 30, 2019 and 2018, are as follows:
Beginning balance 4,214 4,964
Current service cost 335 373
Interest expense 75 103
Actuarial gain 255 445
Benefits paid (189) (603)
Ending balance 4,690 5,282
13. Provisions
Changes in provisions for the nine-month periods ended September 30, 2019 and 2018, are
as follows:
(in millions of
Korean won) 2019
Unused
commitment Point
Provision for
restoration Others1 Total
Beginning balance 74,619 27,668 6,038 3,374 111,699
Changes in
accounting policies - - - - -
Provision (reversal) 5,111 (7,818) (4,329) (255) (7,291)
Others - - 3,610 (417) 3,193
Ending balance 79,730 19,850 5,319 2,702 107,601
1 Other provisions include provision for deposits in escrow account.
(in millions of
Korean won) 2018
Unused
commitment Point
Provision for
restoration Others Total
Beginning balance 54,404 27,506 5,296 9,848 97,054
Changes in
accounting policies 30,148 - - - 30,148
Reversal (8,427) (1,634) (222) (3) (10,286)
Others - - 373 (2,473) (2,100)
Ending balance 76,125 25,872 5,447 7,372 114,816

26
Changes in provision for unused commitment for the nine-month periods ended September
30, 2019 and 2018, are as follows:
Lifetime expected credit losses
12-month
expected credit
losses
Not
Beginning balance 44,249 30,370 - 74,619
Transfer to assets measured
at 12-month expected credit
losses 15,647 (15,647) - -
at lifetime expected credit
losses (2,810) 2,810 - -
Impairment (3) (10) 13 -
Provision (reversal) (10,294) 15,419 (13) 5,112
Ending balance 46,788 32,942 - 79,731
Lifetime expected credit losses
12-month
expected credit
losses
Not
Beginning balance1 44,692 39,594 266 84,552
at 12-month expected credit
losses 19,786 (19,786) - -
at lifetime expected credit
losses (3,430) 3,430 - -
Impairment (4) (11) 15 -
Provision (reversal) (20,050) 11,904 (281) (8,427)
Ending balance 40,994 35,131 - 76,125
1 30,148 million was recognized in the beginning balance of provision for unused
commitment due to initial application of Korean IFRS 1109.

27
14. Derivatives and Hedge Accounting
There are no derivative instruments held for trading as at September 30, 2019 and December
31, 2018.
Cash flow hedge
The Group removes the volatility risk of future cash flow of a hedged item, such as
borrowings, caused by changes in market interest rates or in foreign currency rates by using
derivative instruments, such as an interest rate swap or currency swap.
Details of derivative assets and liabilities as at September 30, 2019 and December 31, 2018,
are as follows:
Korean won)
Unsettled
contract
amount Asset Liabilities
Accumulated
other
comprehensive
income1
Interest rate swap 2,295,000 819 28,216 (20,812)
Currency swap 1,309,417 58,297 - (15,618)
3,604,417 59,116 28,216 (36,430)
Korean won)
Unsettled
contract
amount Asset Liabilities
Accumulated
other
comprehensive
income1
Interest rate swap 2,565,000 2,793 14,245 (8,737)
Currency swap 1,330,539 - 32,554 (4,191)
3,895,539 2,793 46,799 (12,928)
1 Amount reflects tax effect.
For transactions between local and foreign currencies, the unsettled contract amount of
transaction is translated by applying the basic foreign exchange rate at the end of reporting
period to the contract amount in foreign currencies. For transactions between foreign
currencies and other foreign currencies, the unsettled contract amount is the amounts
translated by applying the basic foreign exchange rate at the end of reporting period to the
contract amount in foreign currencies purchased.
The maximum period for the Group exposed to the variability in future cash flows arising from
derivatives designated as cash flow hedges is expected to be until December 21, 2026.
Meanwhile, there is no ineffective portion recognized related to cash flow hedge for the nine-
month periods ended September 30, 2019 and 2018.

28
The average hedge ratio of derivative assets and liabilities as at September 30, 2019, is as
follows:
(in millions of
Korean won)
Less than
1 year
Between
1-2 years
Between
2-3 years
Between
3-4 years
Between
4-5 years
Over
5 years Total
Nominal amount the
hedged item
1,460,520 723,063 744,730 456,104 20,000 200,000 3,604,417
Nominal amount the
hedging instrument
1,460,520 723,063 744,730 456,104 20,000 200,000 3,604,417
Average hedge ratio 100% 100% 100% 100% 100% 100% 100%
15. Share Capital and Hybrid Securities
The Parent Company’s total number of authorized shares is 600,000,000 (5,000 per share)
and the total number of ordinary shares issued is 160,465,286 shares (802,326 million).
Details of hybrid securities classified as equity as at September 30, 2019, are as follows:
(in millions of Korean won) Issue date Maturity date Interest rate Amount
731st Bond-Type hybrid securities1 2018.07.05 2048.07.05 4.70% 300,000
Issuance costs (760)
299,240
1 Terms of issuance for Bond-Type hybrid securities are as follows:
Bond-Type hybrid securities
Maturity 30 years (extendable at the discretion of the Company at
original maturity)
Interest rate From maturity to July 5, 2023 : a fixed rate of 4.7% p.a.
with a one-off incremental 2% per the Step-up clause 5
years after issuance
Interest payment condition Three months in arrears with selective deferment
Others Early redemption by issuer allowed 5 years after issuance

29
16. Retained Earnings
Retained earnings as at September 30, 2019 and December 31, 2018, consist of:
Legal reserves1 53,889 50,808
Reserves for electronic financial transaction 1,000 1,000
Regulatory reserve for credit losses (Note 18) 668,644 698,019
Unappropriated retained earnings 1,442,193 1,305,465
2,165,726 2,055,292
1 The Commercial Code of the Republic of Korea requires the Parent Company to appropriate
for each financial period, as a legal reserve, an amount equal to a minimum of 10% of cash
dividends paid until such reserve equals 50% of its issued share capital. The reserve is not
available for cash dividends payment, but may be transferred to share capital or used to reduce
accumulated deficit.
Changes in retained earnings for the nine-month periods ended September 30, 2019 and 2018,
are as follows:
Beginning balance 2,055,292 2,016,528
Changes in accounting policies - (84,784)
Profit for the period 151,818 127,847
Dividends paid (30,809) (19,416)
Distribution from hybrid securities (10,575) (3,333)
Ending balance 2,165,726 2,036,842
Dividends paid for the nine-month period ended September 30, 2019, are as follows:
Total number
of ordinary
shares issued
Total number
of shares for
dividends
Dividend
per share
(in Korean won)
Total dividend
Ordinary shares 160,465,286 160,465,286 192 30,809

30
17. Accumulated Other Comprehensive Income
Changes in accumulated other comprehensive income for the nine-month periods ended
(in millions of Korean
won) 2019
Changes
Beginning
balance
Reclassification
of profit or loss Other Tax effects
Ending
balance
Gain (loss) on valuation of
derivatives
(12,929) (1,529) (29,483) 7,510 (36,431)
Remeasurements of net
defined benefit liabilities
(10,526) - (4,382) 1,099 (13,809)
(23,455) (1,529) (33,865) 8,609 (50,240)
won) 2018
Changes
Beginning
balance
Reclassification
of profit or loss Other Tax effects
Ending
balance
Gain (loss) on valuation of
derivatives
7,233 484 (15,088) 3,519 (3,852)
Remeasurements of net
defined benefit liabilities
(13,416) - (4,683) 1,161 (16,938)
(6,183) 484 (19,771) 4,680 (20,790)

31
18. Regulatory Reserve for Credit Losses
Details of regulatory reserves for credit losses as at September 30, 2019 and December 31,
2018, are as follows:
Beginning 668,644 698,019
Amount estimated to be appropriated (reversed) 57,245 (29,375)
Changes in accounting policies1 - (69,084)
Changes in regulatory reserves for credit
losses 57,245 39,709
Ending 725,889 668,644
1 Changes in regulatory reserve for credit losses due to the application Korean IFRS 1109 in
2018.
Estimated provision (reversal) of reserves for credit losses and adjusted profit after provision
of reserves for credit losses for the nine-month periods ended September 30, 2019 and 2018,
are as follows:
Provision of regulatory reserve for credit losses1 57,245 92,249
Adjusted profit after provision of regulatory
reserve for credit losses 94,574 35,598
Earnings per share after provision of reserves
for credit losses (in Korean won) 589 222
1 Changes in regulatory reserve for credit losses, excluding the impact of changes in
accounting policies.

32
19. Card Income and Expense
Details of card income and expense for the three-month and nine-month periods ended
(in millions of 2019 2018
Korean won) Three Months Nine Months Three Months Nine Months
Card income
Agent commission 302,494 990,107 345,452 1,042,867
Commission income from life
service
8,562 25,505 5,858 19,470
Overseas commission income 11,812 28,242 8,103 27,599
Income from annual subscription 47,810 140,706 44,377 132,004
Others 30,584 92,782 31,753 98,760
Deduction from revenue1 (148,257) (390,251) (114,745) (390,954)
253,005 887,091 320,798 929,746
Card expense
Acquisition fee 16,896 71,276 35,135 116,187
Promotion 65,874 145,064 44,065 179,949
Service fee 154,739 537,920 179,997 530,412
Financial service fee 1,343 4,077 1,636 5,264
A new credit sale handling fee 41,018 119,305 41,020 118,770
Overseas payment fee 18,461 55,201 17,975 51,683
Card issuance expenses 6,496 20,509 6,798 20,231
Others 9,120 26,039 6,956 23,113
Deduction from expense1 (148,257) (390,251) (114,745) (390,954)
165,690 589,140 218,837 654,655
1 Deductible items in accordance with application of Korean IFRS 1115.

33
20. Interest Income and Expense
Interest income and expense for the three-month and nine-month periods ended September
Interest income
Income from installment service 54,976 171,561 58,126 170,715
Commission income from short-
term card loan
25,314 74,413 30,725 94,498
Income from long-term card loan
(general card loan)
121,347 352,244 128,296 375,120
Income from long-term card loan
(refinancing loan)
2,322 7,076 2,165 6,730
Revolving interest income 46,785 136,337 46,753 138,153
Loans receivable income 322 1,380 319 374
Other interest income 5,824 19,645 7,583 19,736
256,890 762,656 273,967 805,326
Interest expense
Borrowings 16,472 50,222 17,337 48,371
Debentures 48,588 140,952 48,349 146,293
Others 307 1,004 91 121
65,367 192,178 65,777 194,785

34
21. Other Operating Income and Expenses
Other operating income and expense for the three-month and nine-month periods ended
Other operating income
Gain on foreign currency
transactions
5,689 15,991 4,951 14,666
Gain on derivatives transactions 27,045 28,905 - -
Gain on valuation of derivatives 36,895 83,928 (12,510) 57,407
Others 18,137 53,309 13,031 37,486
87,766 182,133 5,472 109,559
Other operating expenses
Loss on foreign currency
transactions
28,888 33,742 1,225 4,927
Loss on foreign currency
translation
37,347 84,380 (12,510) 57,407
Others 8,559 25,944 6,493 23,066
74,794 144,066 (4,792) 85,400

35
22. Selling and Administrative Expenses
Details of selling and administrative expenses for the three-month and nine-month periods
ended September 30, 2019 and 2018, are as follows:
Salaries 36,096 111,038 43,030 133,487
Post-employment benefits 4,654 11,277 11,905 21,940
Employee benefits 5,306 18,088 5,785 20,821
Travel expenses 334 1,010 449 1,701
Communication expenses 8,666 24,992 9,127 25,842
Postal expenses 3,273 9,032 3,056 9,850
Rental expenses 6,605 14,654 7,444 22,868
Taxes and dues 5,163 16,175 4,993 15,910
Repair and maintenance expenses 328 1,030 318 1,028
Insurance premiums 70 209 71 275
Entertainment expenses 152 370 160 372
Advertising expenses 11,094 22,061 8,822 27,643
Supply expenses 790 2,494 770 2,344
Vehicle maintenance expenses 3 9 4 12
Periodicals expenses 44 149 59 196
Book and magazine expenses 1,037 3,468 952 3,200
Training expenses 416 932 513 1,772
IT expenses 11,542 34,245 12,032 37,699
Expense for temporary staff 1,242 3,801 1,553 4,370
Professional service expenses 38,242 110,948 44,092 121,701
Delivery commission 604 1,162 270 822
Commission expenses 8,624 26,232 8,321 25,768
Business activity expenses 297 853 477 1,661
Construction expenses 254 1,899 390 1,137
Depreciation 8,845 27,649 9,975 30,471
Amortization 7,837 28,776 10,438 30,980
Depreciation of right-of-use assets 4,587 15,531 - -
Event expenses 296 801 66 505
Conference expenses 65 183 89 363
Building administrative expenses 2,703 8,206 2,834 8,173
169,169 497,274 187,995 552,911

36
23. Tax Expense
Income tax expense for the nine-month periods ended September 30, 2019 and 2018, consists
of:
Current tax on profits for the period (including
additional payment of tax and income tax
refund) 58,198 9,926
Changes in deferred tax assets and liabilities (14,981) 21,908
Income tax expense reflected directly to equity 8,609 4,680
Income tax expense 51,826 36,514
Income tax expenses reflected directly to equity for the nine-month periods ended September
Beginning
balance Increase
Ending
balance
Tax effect related to cash flow
hedges 4,017 7,510 11,527
Tax effect related to
remeasurements of net
defined benefit liabilities 3,270 1,099 4,369
7,287 8,609 15,896
Beginning
balance Increase
Ending
balance
Tax effect related to cash flow
hedges (2,289) 3,518 1,229
Tax effect related to
remeasurements of net
defined benefit liabilities 4,246 1,162 5,408
1,957 4,680 6,637

37
A reconciliation between income before income tax and income tax expense for the nine-
month periods ended September 30, 2019 and 2018, are as follows:
Profit before income tax 203,645 164,361
Income tax based on statutory tax rate
(rate: 11%, 22%, 24.2%) 48,820 39,313
Add (deduct):
Others 3,006 (2,799)
Income tax expense for continuing operations 51,826 36,514
Effective tax rates 25.45% 22.22%
24. Consolidated Interim Statements of Cash Flows
Details of cash and cash equivalents as at September 30, 2019 and December 31, 2018, are
as follows:
Current deposit 284 345
Ordinary deposit 266,306 205,439
Short-term financial instruments 79,461 -
Other cash and cash equivalents 603,284 660,672
949,335 866,456
Cash generated from (provided by) operations for the nine-month periods ended September
Adjustments:
Income tax expense 51,826 36,514
Interest expense 192,178 194,785
Impairment loss 104,727 82,285
Loss on disposal of loan receivables 102,161 123,747
Loss on valuation of financial assets at fair
value through profit or loss
- 60
Post-employment benefits 8,838 10,118
Other long-term benefits 666 922
Depreciation 27,649 30,471

38
Amortization 28,776 30,980
Depreciation of right-of-use assets 15,531 -
Loss on foreign currency translations 84,380 57,407
Loss on disposal of property and equipment
and intangible assets
43 138
Non-interest-bearing installment 45,496 32,548
Other operating expenses 1,019 1,794
Reversal of provision (7,291) (10,287)
Interest income (19,644) (19,736)
Dividend income (30) (496)
Gain on valuation of financial assets at fair
(1,262) (2,064)
Gain on disposal of financial assets at fair
- (30)
Gain on valuation of derivatives (83,928) (57,407)
Amortization of present value of discounts of
card assets
(40,603) (30,655)
Amortization of deferred origination cost and
fee of card assets
(24,785) (24,739)
Gains on disposal of property and equipment
and intangible assets
(19) (238)
Gain on disposal of assets held-for-sale (697) -
Other operating income (28) -
485,003 456,117
Changes in operating assets and liabilities:
Decrease (increase) in financial assets at fair
191,934 (225,090)
Increase in card assets (1,017,955) (279,455)
Decrease in loan receivables 12,952 -
Increase in other receivables (18,141) (43,820)
Increase in other assets (50,626) (98,053)
Increase in other payables 207,055 577,363
Decrease in withholdings (86,575) (72,387)
Decrease in accrued expenses (24,500) (45,128)
Increase in other liabilities 4,123 11,940
(781,732) (174,630)
Cash generated from (provided by) operations (144,910) 409,334

39
25. Contingencies and Commitments
(a) Significant commitments
The Group made an intraday bank overdrafts agreement of 150 billion with Kookmin Bank
and 4 other institutions, and the Group made an agreement of 1,537.9 billion with Kookmin
Bank and 20 other institutions for general loans and credit line as at September 30, 2019.
(b) In relation to the leased office building, the Group can exercise pre-emptive rights if the
lessor plans to sell the real estate or after four years and five months from the lease
commencement date on the lease agreement.
(c) Pending litigations
As at September 30, 2019, the Group is involved in 8 cases (11,995 million) as a defendant,
5 cases (19,664 million) as a plaintiff and the cases for debt collection against multiple
debtors in the important pending litigations. The Group does not expect these pending
litigations referred above to have a significant effect on the Group’s consolidated financial
statements.
(d) Deposit for loss reimbursement
As at September 30, 2019, the Group has deposits of the proceeds and interests from the sale
of shares of Daewoo Engineering & Construction Co., Ltd. in an escrow account, which is
amounting to 2,702 million and 5,061 million, respectively. The Group recognized 2,702
million of the provision on deposits in escrow account (Note 13).
(e) Contract of sale of receivables
The Group entered into a contract with Hyundai Capital Services, Inc. relating to its sale of
receivables on January 24, 2006. In accordance with the contract, the Group sells the
receivables that are 60 days or more past due or written off (partially including receivables that
are before 60 days) to Hyundai Capital Services, Inc. Such sale occurs five times a month on
designated cutoff dates at the amount calculated using a predetermined price pursuant to the
contract. As a result, losses on disposal of loans receivable amounting to 102,161 million
and 123,746 million for the nine-month periods ended September 30, 2019 and 2018, were
recognized.
(f) Reserve for loss reimbursement
The Group has the reserves for electronic financial transaction in case of fraudulent credit card
activities or accidents occurred in accordance with “Electronic Financial Transactions Act”.

40
(g) Insurance for the implementation of the liability for damages
The Group has insured a value of 1 billion for the implementation of the liability for damages
in accordance with the Article 43 of Credit Information Act.
(h) Commitment associated with asset-backed securitization
The Group continuously transfers receivables to maintain that the balance of the asset-backed
securitization is above a certain level of trust beneficiary certificates relating to the asset-
backed securitization. According to the agreement on the Group’s asset-backed securitization,
in order to enhance the credit level of the asset-backed securities, several provisions are in
place as trigger clauses to be used for early redemption calls, thereby limiting the risk that the
investors are exposed to resulting from a change in quality of the assets in the future. In the
event that the asset-backed securitization of the Group is in violation of the applicable trigger
clause, the Group is obliged to make early redemption for the asset-backed securities.
Meanwhile, when event of defaults occurs from derivative contracts regarding asset-backed
securities issued by Super Series 3rd SPC, Super Series 4th SPC, Super Series 5th SPC and
Super Series 6th SPC, the Parent Company may be liable for reimbursement of losses
incurred on counterparties.
(i) Agreement relating to borrowing liability
As at September 30, 2019, the Group has entered into agreements including Trigger clause
with its creditors for the purpose of credit enhancement of certain borrowing liabilities. If the
Group breaches its Trigger clause, the Group may be subject to early repayment, or
suspension/ termination of contracts with the creditors.

41
26. Related Party Transactions
As at September 30, 2019, details of the related parties are as follows:
Companies
Parent company Hyundai Motor Company
Other related parties Green Air, Kia Motors, Kia Tigers, Maintrans Co., Ltd., Busan Finance
Center AMC, Seoul PMC, HL Green Power, WIA-MAGNA Powertrain,
Eukor Car Carriers, Innocean Worldwide, Iljin Bearing, Chunbuk
Hyundai Motors FC, G-Marine Service Co., Ltd., GIT, Korea Credit
Bureau, Hankook Economy Daily, Haevichi Hotels&Resorts, Haevichi
Country Club, Hyundai Engineering & Construction, Hyundai Glovis,
Hyundai Transys, Hyundai City Corporation, Hyundai Rotem,
Hyundai Materials, Hyundai Mobis, Hyundai BNG Steel, Hyundai
Farm Land & Development, Hyundai Engineering & Steel Industries,
Hyundai IHL, Hyundai Energy, Hyundai Engineering, Hyundai NGV,
Hyundai MSEAT, Hyundai MNSOFT, Hyundai AutoEver, Hyundai-
autron, Hyundai WIA, Hyundai WIA Turbo, Hyundai Steel Company,
HYUNDAI Architects & Engineers Assoc., Hyundai Special Steel
Company, HYUNDAI MOTOR SECURITIES CO.,LTD., Hyundai
Capital, Hyundai Commercial, Hyundai KEFICO, Hyundai Partecs,
Hyundai Capital America, Consumer Preferred Choice Limited,
Complete Logistic Solutions Limited, Alplnvest Partners Co-
Investments 2015 I SPV B.V., AlpInvest Partners Co-Investments
2015 II SPV B.V., AlpInvest Mich SPV B.V. and others
Sales and purchases with related parties for the nine-month periods ended September 30,
2019 and 2018, are as follows:
Korean won) Income Expense Others
Card
income
Rental
income Others
Card
expense
Selling and
administrative
expenses Others1
Purchase of
property and
equipment
and intangible
assets
Disposal of
assets2
Parent Company
Hyundai Motor
Company 103,241 - - - 69 335 - -
Other related
parties
Hyundai Capital 1 739 19,123 31,559 1,740 16,182 380 91,505
Kia Motor Company 42,579 - 100 - - 81 - -
Hyundai Auto Ever
Systems 2,936 - 521 - 48,980 (4) 13,806 -
Hyundai Engineering 12 - - - 8,594 - - -
Hyundai Steel
Company 3 - - - - (2) - -
Others 1,551 1,132 964 30 3,313 1,200 - -
150,323 1,871 20,708 31,589 62,696 17,792 14,186 91,505

42
1 Reversal of provision for impairment on card assets due from related party amounting to
31 million is included.
2 The book amount before disposal (before deducting provision for impairment) is 266,025
million.
Korean won) Income Expense Others
Card
income
Rental
income Others
Card
expense
Selling and
administrative
expenses Others1
Purchase of
property and
equipment
and intangible
assets
Disposal of
assets2
Parent Company
Hyundai Motor
Company 96,861 - - - 196 630 - -
Other related
parties
Hyundai Capital 2 874 21,733 24,053 2,138 16,779 - 117,035
Hyundai Life 1,064 39 - - 3,181 125 - -
Kia Motor Company 47,933 - - - - 149 - -
Hyundai Auto Ever
Systems 3,134 - - 85 47,522 8 16,018 -
Hyundai Engineering 12 4 - - 7,598 1 - -
Others 1,828 812 2,127 79 5,203 1,911 - -
150,834 1,729 23,860 24,217 65,838 19,603 16,018 117,035
1 Impairment loss on card assets due from related party amounting to 502 million is
included.
2 The book amount before disposal (before deducting provision for impairment) is 291,732
million.
Outstanding balances arising from sales/purchases of goods and services as at September
30, 2019 and December 31, 2018, are as follows:
(in millions of
Korean won)
September 30, 2019
Receivables Payables
Unused
credit limit2
Card
assets1
Provision
for
impairment Others
Other
payables Others3
Parent Company
Hyundai Motor
Company 44,994 (118) 2,193 48,629 5 165,006
Other related parties
Hyundai Capital 52,470 (70) 161 2,386 883 226,221
Kia Motor Company 17,269 (22) - 14,712 - 52,731
Hyundai AutoEver 6,646 (15) - 1,373 2 39,354
Hyundai Engineering 3,638 (5) - 6 - 2,362
Hyundai Steel 3,946 (5) - 2,655 - 26,054

43
Company
Others 36,660 (118) - 1,552 896 175,931
165,623 (353) 2,354 71,313 1,786 687,659
1 Unsettled amount of the corporate purchasing card amounting to 23,717 million is included
and the amounts used and redeemed for the nine-month period ended September 30, 2019,
are 510,493 million and 532,955 million, respectively.
2 Unused credit limit of the corporate purchasing card is included.
3 As at September 30, 2019, newly recognized lease liabilities arising from related parties are
219 million and the amount redeemed is 301 million.
Korean won) Receivables Payables
Unused
credit limit2
Card
assets1
Provision
for
impairment Others
Other
payables Others
Parent Company
Hyundai Motor
Company 44,908 (59) 2,193 41,975 - 164,855
Other related parties
Hyundai Capital 53,076 (132) 328 2,394 637 178,680
Kia Motor Company 16,223 (21) - 14,165 - 53,777
Hyundai AutoEver 8,415 (19) - 2,666 2 37,585
Hyundai Engineering 3,533 (5) - 3 - 2,467
Others 35,845 (86) 1 8,427 561 208,151
162,000 (322) 2,522 69,630 1,200 645,515
1 Unsettled amount of the corporate purchasing card amounting to 46,180 million is included
and the amounts used and redeemed for the period ended December 31, 2018, are 672,840
million and 675,735 million, respectively.
2 Unused credit limit of the corporate purchasing card is included.
Compensation for key management for the nine-month periods ended September 30, 2019
and 2018, are as follows:
Short-term employee benefits 8,581 10,015
Post-employment benefits 1,486 2,463
Other long-term benefits 10 10
10,077 12,488

44
There were no fund transactions from the related parties for the nine-month periods ended
September 30, 2019 and 2018.
Dividend paid to the related parties for the nine-month periods ended September 30, 2019 and
2018, are as follows:
Parent company and others 29,878 18,829
There are no payment guarantees and collateral provided by the Group for the financial
supports to the related parties as at September 30, 2019 and no collateral and payment
guarantees are provided by the related parties.
27. Transfers of Financial Assets
The Parent Company transferred receivables to Super Series 3rd SPC, Super Series 4th
SPC, Super Series 5th SPC, Super Series 6th SPC and Super Series 7th SPC (hereafter,
“SPC”) in order to securitize assets. SPC issued subordinate asset-backed securities with
transferred receivables as underlying asset, and as the Parent Company is providing credit
reinforcement by acquiring such subordinate asset-backed securities, should any impairment
loss incurred in receivables belongs to the underlying asset, the risk preferentially belongs to
the Parent Company.
Transferred financial assets that are not derecognized in their entirety and the associated
liabilities as at September 30, 2019 and December 31, 2018, are as follows:
Asset-backed card assets
Book amount of assets1 4,010,344 3,852,306
Book amount of the associated liabilities 1,706,289 1,626,907
1 The amount is before provision for impairment.
As at September 30, 2019, the Group has issued its securitization liabilities with card assets
as an underlying asset, and the related securitization liabilities have the right of recourse
about the underlying assets. As at September 30, 2019, the fair value of financial assets
transferred but not eliminated is 3,978,372 million and the fair value of related liabilities is
1,712,654 million and net position is 2,265,717 million.

45
28. Offsetting Financial Assets and Financial Liabilities
The Group has entered into derivative contracts that include an International Swaps and
Derivatives Association ("ISDA") master netting agreements.
Generally, in such arrangements, all contracts that exist in the same currency are consolidated
into one net amount and paid from one party to the other. Also, in the event of a credit event
such as bankruptcy, all contracts existing under the agreement will be cleared, the liquidating
value will be assessed and all contracts will be settled on a net basis.
The ISDA arrangement does not meet the offset requirement in the consolidated financial
statements. The Group does not currently have legally enforceable right to set-off in
recognized assets and liabilities because the right to set-off cannot be exercised before a
credit event such as bankruptcy occurs.
The effects of netting agreements as at September 30, 2019 and December 31, 2018, are as
follows:
Korean won) Amounts not offset
Recognized
financial
assets and
liabilities
Gross
financial
assets and
liabilities
set off
Net amounts
presented in
the statement
of financial
position
Financial
instruments
Cash
collateral
received Net amounts
Financial assets
Derivative assets 59,116 - 59,116 83 - 59,033
Financial liabilities
Derivative liabilities 28,216 - 28,216 83 - 28,133
Korean won) Amounts not offset
Recognized
financial
assets and
liabilities
Gross
financial
assets and
liabilities
set off
Net amounts
presented in
the statement
of financial
position
Financial
instruments
Cash
collateral
received Net amounts
Financial assets
Derivative assets 2,793 - 2,793 2,633 - 160
Derivative liabilities 46,799 - 46,799 2,633 - 44,166

46
29. Financial Instruments by Category
Carrying amount of financial instruments by category as at September 30, 2019 and December
31, 2018, are as follows:
won) September 30, 2019
Financial
assets at
amortized
cost
Financial assets
at fair value
through profit or
loss
Financial assets
at fair value
through other
comprehensive
income
Derivative
instruments
for hedging Total
Financial assets
Cash and deposits 1,061,431 - - - 1,061,431
Securities - 876,594 1,484 - 878,078
Card assets and loan
receivables 13,815,449 - - - 13,815,449
Other financial assets 186,336 - - 59,116 245,452
15,063,216 876,594 1,484 59,116 16,000,410
(in millions of Korean won) September 30, 2019
at amortized cost
Derivative instruments
for hedging Total
Borrowings 11,117,278 - 11,117,278
Other financial liabilities 1,807,134 28,216 1,835,350
12,924,412 28,216 12,952,628
won) December 31, 2018
Financial
assets at
amortized
cost
Financial assets
at fair value
through profit or
loss
Financial assets
at fair value
through other
comprehensive
income
Derivative
instruments
for hedging Total
Financial assets
Cash and deposits 947,477 - - - 947,477
Securities - 1,062,236 1,484 - 1,063,720
receivables 12,997,506 - - - 12,997,506
Other financial assets 177,860 - - 2,793 180,653
14,122,843 1,062,236 1,484 2,793 15,189,356

47
(in millions of Korean won) December 31, 2018
at amortized cost
Derivative instruments
for hedging Total
Borrowings 10,513,362 - 10,513,362
Other financial liabilities 1,684,188 46,799 1,730,987
12,197,550 46,799 12,244,349
Net gains or losses on each category of financial instruments for the nine-month periods ended
Interest income
Interest
expenses Card income
Card
expenses Impairment loss
Financial assets
Financial assets at amortized cost 762,656 - 887,091 589,140 104,727
profit or loss - - - - -
other comprehensive income - - - - -
Derivative instruments for hedging - - - - -
Financial liabilities at amortized cost - 192,178 - - -
762,656 192,178 887,091 589,140 104,727
Gain on
valuation
Gain (loss) on
disposal
Dividend
income
Loss on foreign
currency
translation
Gain (loss) on
foreign
currency
transactions
Financial assets
Financial assets at amortized cost - (102,161) - (452) 11,154
profit or loss 1,262 1,956 - - -
other comprehensive income - - 30 - -
Derivative instruments for hedging 83,928 - - - -
Financial liabilities at amortized cost - - - (83,928) (28,905)
Derivative instruments for hedging - 28,905 - - -
85,190 (71,300) 30 (84,380) (17,751)

48
Interest income
Interest
expenses Card income
Card
expenses Impairment loss
Financial assets
Financial assets at amortized cost 805,326 - 929,746 654,654 82,285
profit or loss - - - - -
other comprehensive income - - - - -
Financial liabilities at amortized cost - 194,785 - - -
805,326 194,785 929,746 654,654 82,285
Gain on
valuation
Gain (loss) on
disposal
Dividend
income
Loss on foreign
currency
translation
Gain on foreign
currency
transactions
Financial assets
Financial assets at amortized cost - (123,746) - - 9,739
profit or loss 2,003 479 471 - -
other comprehensive income - - 25 - -
Financial liabilities at amortized cost - - - (57,407) -
Derivative instruments for hedging 57,407 - - - -
59,410 (123,267) 496 (57,407) 9,739

49
30. Fair Value of Financial Instruments
Fair value hierarchy classifications of the financial instruments that are subsequently
measured at fair value as at September 30, 2019 and December 31, 2018, are as follows:
(in millions of Korean won) September 30, 2019
Book amount Fair value Level 1 Level 2 Level 3
Financial assets
Financial assets at fair value
Securities at fair value
through profit or loss1
876,594 876,594 - 866,342 10,252
through other
comprehensive income2
1,484 1,484 - - 1,484
Derivatives assets 59,116 59,116 - 59,116 -
Financial liabilities at fair value
Derivatives liabilities 28,216 28,216 - 28,216 -
1 As at September 30, 2019, among the securities at fair value through profit or loss in level 3,
equity instruments amounting to 5,338 million are measured at cost since cost is deemed
as a reasonable approximation of fair value.
2 As at September 30, 2019, among the securities at fair value through other comprehensive
income in level 3, equity instruments amounting to 1,484 million are measured at cost since
cost is deemed as a reasonable approximation of fair value.
(in millions of Korean won) December 31, 2018
Book amount Fair value Level 1 Level 2 Level 3
Financial assets
Financial assets at fair value
through profit or loss1
1,062,236 1,062,236 - 1,057,100 5,136
through other
comprehensive income2
1,484 1,484 - - 1,484
Derivatives assets 2,793 2,793 - 2,793 -
Financial liabilities at fair value
Derivatives liabilities 46,799 46,799 - 46,799 -
1 As at December 31, 2018, among the securities at fair value through profit or loss in level 3,
equity instruments amounting to 1,122 million are measured at cost since cost is deemed
as a reasonable approximation of fair value.
2 As at December 31, 2018, among the securities at fair value through other comprehensive
income in level 3, equity instruments amounting to 1,484 million are measured at cost since
cost is deemed as a reasonable approximation of fair value.

50
To provide information about the reliability of the inputs used in determining fair value, the
Group classifies its financial instruments into the three levels prescribed under the accounting
standards. Financial instruments that are measured at fair value are categorized by the fair
value hierarchy whereby the levels are defined as follows:
- Level 1: The fair value of financial instruments traded in active markets (such as publicly
traded derivatives and equity securities) is based on quoted market prices at the end of
the reporting period. The quoted marked price used for financial assets held by the
Group is the current bid price. These instruments are included in level 1.
- Level 2: The fair value of financial instruments that are not traded in an active market
(for example, over–the–counter derivatives) is determined using valuation techniques
which maximize the use of observable market data and rely as little as possible on
entity-specific estimates. If all significant inputs required to measure an instrument at
fair value are observable, the instrument is included in level 2.
- Level 3: If one or more of the significant inputs is not based on observable market data,
the instrument is included in level 3. Examples include unlisted equity securities.
There are no changes in fair value hierarchy level for the nine-month period ended September
30, 2019.
The following table presents the changes in level 3 financial instruments for the nine-month
period ended September 30, 2019 and 2018:
Securities at fair
value through profit
or loss
Securities at fair
value through other
comprehensive
income
Beginning balance 5,136 1,484
Profit or loss
Amount recognized in profit or loss 86 -
Acquisition 5,030 -

51
Securities at fair
value through profit
or loss
Securities at fair
value through other
comprehensive
income
Beginning balance 283 1,484
Profit or loss
Amount recognized in profit or loss (60) -
Acquisition 2,636 -
The following table explains valuation techniques, fair value hierarchy, notable unobservable
inputs and extents, and the correlation between unobservable inputs and fair value
measurement used in fair value measurement:
(in millions of
Korean won)
Classification
Fair value
Fair value
hierarchy
Valuation techniques
Range of
inputs
September
30, 2019
December
31, 2018
Securities Assets 866,342 1,057,100 Level 2 The fair value is determined by discounting
the expected cash flows with the market
interest rate considering the similar credit
grade with the debt security issuer.
N/A
4,914 4,014 Level 3 The fair value of equity securities is
determined by net assets value approach
or discounting the expected cash flows
with an appropriate discount rate.
Interest rate
swap
Assets 819 2,793 Level 2 Discount rates and forward rates used to
measure fair values of interest rate swap
are determined based on the applicable
constructed market-based yield curve.
The fair value is determined by offsetting
the discounted expected cash flows of
interest rate swap with the
aforementioned forward rates.
N/A
Liabilities 28,216 14,245
Currency swaps Assets 58,297 - Level 2 Discount rates and forward rates used to
measure fair values of currency swaps
are determined based on the applicable
constructed market-based yield curve.
The trading base rate on the morning of
the report date is used as currency swap’s
exchange rate. The fair value is
determined by offsetting the discounted
expected cash flows of currency swap
with the aforementioned forward rates and
closing price.
Liabilities - 32,554 N/A
Cost is deemed as a reasonable approximation of fair value, therefore, valuation techniques
and inputs related to line items whose costs are presented as fair value are not disclosed.

52
The table below provides the fair value and carrying amount of financial instruments that are
not measured subsequently at fair value in the consolidated statements of financial position
as at September 30, 2019 and December 31, 2018.
Book amount Fair value Book amount Fair value
Assets
Financial assets
Cash and deposit 1,061,431 1,061,431 947,477 947,477
receivables 13,815,448 14,021,492 12,997,506 13,285,408
Other financial assets 186,336 186,336 177,860 177,860
15,063,215 15,269,259 14,122,843 14,410,745
Liabilities
Borrowings 11,117,278 11,214,667 10,513,362 10,564,385
Other financial liabilities 1,807,134 1,807,134 1,684,188 1,684,188
12,924,412 13,021,801 12,197,550 12,248,573
The fair valuation techniques of the financial instruments measured at amortized cost are as
follows:
Valuation techniques
Cash and deposits The carrying amounts of cash and demand due from financial institutions and
payment due from financial institutions are reasonable approximation of fair
values. These financial instruments do not have a fixed maturity and are
receivable on demand. Fair value of ordinary due from financial institutions is
measured using DCF model. However, if the remaining maturity is short at the
reporting date, the carrying amount is regarded as fair value.
Card assets and
loan receivables
DCF model is used to determine the fair value of card assets and loan
receivables. Fair value is determined by discounting the expected cash flows,
which are contractual cash flows adjusted by early redemption rate, at
appropriate discount rate. However, if the remaining maturity is short at the
reporting date, the carrying amount is regarded as fair value.
Other financial
assets
DCF model is used to determine the fair value of other financial assets. Fair
value is determined by discounting the expected cash flows, which are
contractual cash flows, at appropriate discount rate. However, if the remaining
maturity is short at the reporting date, the carrying amount is regarded as fair
value.
Borrowings Fair value is calculated by DCF model at an appropriate interest rate for
respective range of maturity.
Other financial
liabilities
DCF model is used to determine the fair value of other financial liabilities. Fair
value is determined by discounting the expected cash flows, which are
contractual cash flows, at appropriate discount rate. However, if the remaining
maturity is short at the reporting date, the carrying amount is regarded as fair
value.

53
The table below provides the fair value hierarchy of financial instruments that are not
measured subsequently at fair value in the consolidated interim statements of financial position
as at September 30, 2019 and December 31, 2018.
(in millions of
Korean won) September 30, 2019
Level 1 Level 2 Level 3 Total
Financial assets
receivables
- - 14,021,492 14,021,492
Borrowings - 11,214,667 - 11,214,667
(in millions of
Korean won) December 31, 2018
Level 1 Level 2 Level 3 Total
Financial assets
receivables
- - 13,285,408 13,285,408
Borrowings - 10,564,385 - 10,564,385
The management of the Group anticipates that, except for the items described in the table
above, the book amount of the financial assets and liabilities measured at amortized cost in
the consolidated financial statements is similar to the fair value.
There are no significant changes in business or economic environment for the nine-month
period ended September 30, 2019, which affect fair values of financial assets and liabilities
held by the Group as at September 30, 2019.

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