HYUNDAI CARD CO., LTD. AND ITS SUBSIDIARIES CONDENSED CONSOLIDATED FINANCIAL STATEMENTS AS OF JUNE 30, 2013 AND FOR THREE MONTHS AND SIX MONTHS ENDED JUNE 30, 2013 AND 2012 AND INDEPENDENT ACCOUNTANTS’ REVIEW REPORT

Deloitte Anjin LLC 9Fl., One IFC, 23, Yoido-dong, Youngdeungpo-gu, Seoul 150-876, Korea

Tel: +82 (2) 6676 1000 Fax: +82 (2) 6674 2114 www.deloitteanjin.co.kr

Independent Accountants’ Review Report English Translation of a Report Originally Issued in Korean To the Shareholders and Board of Directors of Hyundai Card Co., Ltd. We have reviewed the accompanying condensed consolidated financial statements of Hyundai Card Co., Ltd. and its subsidiaries (collectively, the “Company”). The financial statements consist of the condensed consolidated statement of financial position as of June 30, 2013, and the related condensed consolidated statements of comprehensive income for the three months and six months ended June 30, 2013 and 2012, the related condensed consolidated statements of changes in shareholders’ equity and the related condensed consolidated statements of cash flows for the six months ended June 30, 2013 and 2012, and a summary of significant accounting policies and other explanatory information. Management’s responsibility for the condensed consolidated financial statements The Company’s management is responsible for the preparation and fair presentation of the accompanying condensed consolidated financial statements and for such internal control as management determines is necessary to enable the preparation of condensed consolidated financial statements that are free from material misstatement, whether due to fraud or error. Independent accountants’ responsibility Our responsibility is to express a conclusion on the accompanying condensed consolidated financial statements based on our reviews. We conducted our reviews in accordance with standards for review of interim financial statements in the Republic of Korea. A review is limited primarily to inquiries of company personnel and analytical procedures applied to financial data, and this provides less assurance than an audit. We have not performed an audit, and accordingly, we do not express an audit opinion. Review conclusion Based on our reviews, nothing has come to our attention that causes us to believe that the accompanying condensed consolidated financial statements of the Company are not presented fairly, in all material respects, in accordance with Korean International Financial Standards 1034, Interim Financial Reporting.

Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee, and its network of member firms, each of which is a legally separate and independent entity. Please see www.deloitte.com/kr/about for a detailed description of the legal structure of Deloitte Touche Tohmatsu Limited and its member firms. Member of Deloitte Touche Tohmatsu Limited

Emphasis of matters

As explained in Note 2, the Company applied the effect of changes in accounting policy retrospectively and the condensed consolidated statement of financial position as of December 31, 2012, and the related condensed consolidated statement of comprehensive income for the three months and six months ended June 30, 2012, the related condensed consolidated statement of changes in shareholders’ equity and the related condensed consolidated statement of cash flows for the six months ended June 30, 2012, were restated applying the amendments. Meanwhile, our review conclusion is not affected by these matters.

Others

We have also audited the consolidated statement of financial position as of December 31, 2012, and the related consolidated statement of comprehensive income, the related consolidated statement of changes in shareholders’ equity and the related consolidated statement of cash flows (not presented in the accompanying condensed consolidated financial statements), all expressed in Korean won, for the year ended December 31, 2012, in accordance with auditing standards generally accepted in the Republic of Korea. On those consolidated financial statements, we expressed an unqualified opinion in our independent auditors’ report dated March 12, 2013. In addition, the restated condensed consolidated statement of financial position as of December 31, 2012, presented for comparative purposes in the accompanying condensed consolidated financial statements, does not differ, in all material respects, with the audited consolidated statement of financial position as of December 31, 2012.

August 14, 2013

Notice to Readers

This report is effective as of August 14, 2013, the review report date. Certain subsequent events or circumstances may have occurred between the accountants’ review report date and the time the accountants’ review report is read. Such events or circumstances could significantly affect the accompanying condensed consolidated financial statements and may result in modifications to the accountants’ review report.

HYUNDAI CARD CO., LTD. AND ITS SUBSIDIARIES (the “Company”) CONDENSED CONSOLIDATED FINANCIAL STATEMENTS AS OF JUNE 30, 2013 AND FOR THE THREE MONTHS AND SIX MONTHS ENDED JUNE 30, 2013 AND 2012

The accompanying financial statements, including all footnote disclosures, were prepared by, and are the responsibility of, the Company.

Chung, Tae Young Chief Executive Officer

HYUNDAI CARD CO., LTD. AND ITS SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

AS OF JUNE 30, 2013 AND DECEMBER 31, 2012

(Unit: Korean won) June 30, 2013 December 31, 2012 ASSETS: CASH AND BANK DEPOSITS (Notes 5, 28 and 29):

Cash and cash equivalents ￦ 865,320,945,431 ￦ 791,547,295,193 Bank deposits 33,031,500,000 33,029,000,000

Total cash and bank deposits 898,352,445,431 824,576,295,193

INVESTMENT FINANCIAL ASSETS (Note 29): Financial assets available-for-sale (AFS) 1,766,969,764 1,766,969,764

Total investment financial assets 1,766,969,764 1,766,969,764 CARD ASSETS (Notes 6, 7, 25, 26, 28 and 29):

Card receivables, net of present value discounts, deferred origination fees and allowance for doubtful accounts

5,845,625,559,580

6,530,709,506,111

Cash advances, net of allowance for doubtful accounts 853,267,645,835 906,232,767,098 Card loans, net of present value discounts, deferred loan

origination fees and allowance for doubtful accounts 2,411,869,135,650 2,270,095,402,706 Total card assets 9,110,762,341,065 9,707,037,675,915

PROPERTY AND EQUIPMENT (Notes 8, 10, 13 and 26):

Land 122,011,816,788 122,011,816,788 Buildings, net of accumulated depreciation 71,996,228,988 60,330,598,734 Vehicles, net of accumulated depreciation 107,175,833 163,464,977 Fixtures and equipment, net of accumulated depreciation 49,975,660,387 56,690,437,564 Finance lease assets 833,502,377 1,389,170,627 Construction in progress 24,862,453,327 23,797,602,168

Total property and equipment 269,786,837,700 264,383,090,858

OTHER FINANCIAL ASSETS (Notes 5, 7, 17, 28 and 29):

Other accounts receivable, net of allowance for doubtful accounts 90,786,409,773 85,387,050,368

Accrued revenue, net of allowance for doubtful accounts 45,959,704,180 43,654,761,801 Guarantee deposits 35,739,126,405 52,348,673,218 Derivative assets 15,377,021,745 901,423,501

Total other financial assets 187,862,262,103 182,291,908,888

OTHER NON-FINANCIAL ASSETS (Notes 7, 9, 23 and 26):

Advanced payments, net of allowance for doubtful accounts 20,186,257,532 11,254,701,307

Prepaid expenses 47,933,214,416 48,279,724,993 Intangible assets 79,467,176,450 74,664,032,134 Deferred income tax assets 150,798,835,781 135,666,642,303 Others 2,699,366,504 2,342,574,040

Total other non-financial assets 301,084,850,683 272,207,674,777 Total Assets ￦10,769,615,706,746 ￦11,252,263,615,395

(Continued)

HYUNDAI CARD CO., LTD. AND ITS SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (CONTINUED)

AS OF JUNE 30, 2013 AND DECEMBER 31, 2012

(Unit: Korean won) June 30, 2013 December 31, 2012 LIABILITIES AND SHAREHOLDERS’ EQUITY: BORROWINGS :

Borrowings (Notes 11, 28 and 29) ( ￦ 225,000,000,000 ￦ 487,500,000,000 Bonds payable, net of discounts on bonds (Notes 12, 28 and 29) 6,324,911,198,166 6,533,175,825,125

Total borrowings 6,549,911,198,166 7,020,675,825,125

RETIREMENT BENEFIT (Note 14) Retirement benefit obligation 15,220,953,718 10,695,054,186

Total retirement benefit 15,220,953,718 10,695,054,186

OTHER FINANCIAL LIABILITIES (Notes 13, 17, 26, 28 and 29): Accounts payable 1,069,898,594,668 1,186,714,518,145 Withholdings 127,969,844,577 123,824,521,370 Accrued expenses 177,832,064,311 139,353,829,793 Finance lease liabilities 882,577,908 1,452,239,137 Derivative liabilities 3,530,260,718 53,554,957,780 Guarantee deposits 8,636,319,004 12,776,716,986

Total other financial liabilities 1,388,749,661,186 1,517,676,783,211

OTHER NON-FINANCIAL LIABILITIES (Notes 15, 16, 24 and 26):

Withholdings 7,832,724,945 6,968,385,070 Unearned revenue 405,217,899,315 397,830,493,299 Provisions 81,120,429,170 75,687,285,760 Current tax liability 45,250,399,128 30,439,361,053

Total other non-financial liabilities 539,421,452,558 510,925,525,182

SHAREHOLDERS’ EQUITY : Share capital (Note 18) 802,326,430,000 802,326,430,000 Capital surplus (Note 18) 57,704,443,955 57,704,443,955 Retained earnings (Notes 2, 19 and 21) 1,432,060,825,253 1,348,744,482,014 Reserves (Notes 2, 20 and 27) (15,799,078,090) (16,504,748,278) Non-controlling interest 19,820,000 19,820,000

Total shareholders’ equity 2,276,312,441,118 2,192,290,427,691 Total Liabilities and Shareholders’ Equity ￦ 10,769,615,706,746 ￦ 11,252,263,615,395

(Concluded) See accompanying notes to condensed consolidated financial statements.

HYUNDAI CARD CO., LTD. AND ITS SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

FOR THE THREE MONTHS AND SIX MONTHS ENDED JUNE 30, 2013 AND 2012

2013 2012

Three months

ended June 30. Six months

ended June 30. Three months

ended June 30. Six months

ended June 30. OPERATING REVENUE: Card income (Notes 26, 29 and 31) ￦ 616,783,626,697 ￦1,208,213,051,219 ￦ 596,020,112,472 ￦ 1,182,844,074,854

Interest income (Notes 29 and 30) 5,680,294,578 10,521,560,550 4,750,680,827 10,046,723,333

Gain on disposal of financial assets AFS (Note 29) - 54,123,600 - 67,000,000

Dividends income - 178,460,199 - 232,822,339 Reversal of provision for unused

credit limits (Note 16) 940,010,895 433,850,851 225,277,347 - Other operating revenue (Notes 29 and 32) 41,967,458,484 88,073,454,248 18,094,151,750 40,795,771,976

Total operating revenue 665,371,390,654 1,307,474,500,667 619,090,222,396 1,233,986,392,502 OPERATING EXPENSES: Card expenses (Notes 26, 29 and

31) 272,565,416,432 519,710,918,600 278,513,544,223 529,561,625,310 Interest expenses (Notes 29 and

30) 77,570,269,022 156,988,322,213 86,578,547,921 173,241,397,774 General and administrative

expenses (Notes 2, 14, 22 and 26) 152,084,202,967 295,667,053,019 148,340,448,423 280,412,675,828

Securitization expenses 80,798,501 201,014,017 66,607,876 175,866,798 Bad debt expense and loss on

disposal of loans 59,726,038,074 114,753,837,999 55,872,178,959 98,186,842,299 Transfer to provision for unused

credit limits (Note 16) - - - 1,501,400,815 Other operating expenses (Notes

29 and 32) 52,395,072,571 107,309,280,602 7,349,802,170 29,668,348,002

Total operating expenses 614,421,797,567 1,194,630,426,450 42,369,092,824 1,112,748,156,826

OPERATING INCOME 50,949,593,087 112,844,074,217 42,369,092,824 121,238,235,676 NON-OPERATING INCOME: Gain from sale of property and

equipment 2,462,612 80,795,812 3,095,000 3,095,000

Rental revenue (Note 26) 716,087,444 1,361,777,309 636,751,664 884,317,757

Miscellaneous gain 50,944,234 95,768,919 50,847,654 103,913,222

Total non-operating income 769,494,290 1,538,342,040 690,694,318 991,325,979 NON-OPERATING EXPENSES:

Loss from sale of property and equipment 68,798,990 265,172,190 494,344,877 900,582,338

Donations 91,731,229 593,544,244 9,479,165 81,595,456

Total non-operation expenses 160,530,219 858,716,434 503,824,042 982,177,794 (Continued)

HYUNDAI CARD CO., LTD. AND ITS SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (CONTINUED)

FOR THE THREE MONTHS AND SIX MONTHS ENDED JUNE 30, 2013 AND 2012

2013 2012

Three months

ended June 30. Six months

ended June 30. Three months

ended June 30. Six months

ended June 30.

INCOME BEFORE INCOME TAX ￦51,558,557,158 ￦113,523,699,823 ￦ 42,555,963,100 ￦121,247,383,861 INCOME TAX EXPENSE (Notes 2 and 23) 15,445,523,417 30,207,356,584 11,319,520,387 15,135,069,474

INCOME FOR THE PERIOD 36,113,033,741 83,316,343,239 31,236,442,713 106,112,314,387 OTHER COMPREHENSIVE INCOME FOR THE PERIOD (Notes 2 and 27) Items not reclassified subsequently to

profit or loss 1,395,085,968 353,903,847 (520,679,587) (398,853,165) Remeasurements of net defined

benefit liability 1,840,482,807 466,891,619 (686,912,384) (526,191,511) Income tax effect (445,396,839) (112,987,772) 166,232,797 127,338,346 Items reclassified subsequently to

profit or loss 2,226,143,170 351,766,341 (1,428,784,740) 3,559,790,367 Cash flow hedging gains or losses 2,936,864,341 441,295,306 (1,852,064,135) 4,719,199,909 Income tax effect (710,721,171) (89,528,965) 423,279,395 (1,159,409,542) Total other comprehensive income (loss) 3,621,229,138 705,670,188 (1,949,464,327) 3,160,937,202

TOTAL COMPREHENSIVE INCOME FOR THE PERIOD (Note 2) ￦39,734,262,879 ￦ 84,022,013,427 ￦ 29,286,978,386 ￦109,273,251,589

Net income attributable to: Owners of the Company 36,113,033,741 105,713,461,222 82,271,545,155 156,321,430,145 Non-controlling interests - - - - Total comprehensive income attributable

to: Owners of the Company 39,734,262,879 84,022,013,427 29,286,978,386 109,273,251,589 Non-controlling interests - - - -

(Concluded) See accompanying notes to condensed consolidated financial statements.

HYUNDAI CARD CO., LTD. AND ITS SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY

FOR THE SIX MONTHS ENDED JUNE 30, 2013 AND 2012

Share capital

Capital surplus Reserves

Attributable to owners of the

Company

Non-controlling

interests Total

Share premium

Other capital

Retained earnings

Cash flow hedging

reserves

Remeasurements of the net defined

benefit liability

Balance at January 1, 2012 ￦802,326,430,000 ￦ 45,399,364,539 ￦12,305,079,416 ￦ 1,148,396,655,980 ￦(11,764,319,031) ￦ - ￦ 1,996,663,210,904 ￦ 19,820,000 ￦ 1,996,683,030,904

Changes in accounting policy - - - 6,049,230,616 - (6,049,230,616) - - -

Restated balance 802,326,430,000 45,399,364,539 12,305,079,416 1,154,445,886,596 (11,764,319,031) (6,049,230,616) 1,996,663,210,904 19,820,000 1,996,683,030,904

Comprehensive income

Net income - - - 106,112,314,387 - - 106,112,314,387 - 106,112,314,387 Other comprehensive income - - - - 3,559,790,367 (398,853,165) 3,160,937,202 - 3,160,937,202

Acquisition of subsidiaries - - - - - - - 9,910,000 9,910,000

Balance at June 30, 2012 802,326,430,000 45,399,364,539 12,305,079,416 1,260,558,200,983 (8,204,528,664) (6,448,083,781) 2,105,936,462,493 29,730,000 2,105,966,192,493

Balance at January 1, 2013 802,326,430,000 45,399,364,539 12,305,079,416 1,339,725,219,219 (7,485,485,483) - 2,192,270,607,691 19,820,000 2,192,290,427,691

Changes in accounting policy - - - 9,019,262,795 - (9,019,262,795) - - -

Restated balance 802,326,430,000 45,399,364,539 12,305,079,416 1,348,744,482,014 (7,485,485,483) (9,019,262,795) 2,192,270,607,691 19,820,000 2,192,290,427,691

Comprehensive income Net income - - - 83,316,343,239 - - 83,316,343,239 - 83,316,343,239 Other comprehensive income - - - - 351,766,341 353,903,847 705,670,188 - 705,670,188

Balance at June 30, 2013 ￦802,326,430,000 ￦ 45,399,364,539 ￦ 12,305,079,416 ￦ 1,432,060,825,253 ￦ (7,133,719,142) ￦ (8,665,358,948) ￦ 2,276,292,621,118 ￦ 19,820,000 ￦ 2,276,312,441,118

See accompanying notes to condensed consolidated financial statements.

HYUNDAI CARD CO., LTD. AND ITS SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE SIX MONTHS ENDED JUNE 30, 2013 AND 2012

(Unit: Korean won)

Six months ended

June 30, 2013 Six months ended

June 30, 2012

CASH FLOWS FROM OPERATING ACTIVITIES: Income for the period ￦ 83,316,343,239 ￦ 106,112,314,387 Income tax expense 30,207,356,584 15,135,069,474 Interest income (10,521,560,550) (10,046,723,333) Interest expense 156,988,322,213 173,241,397,774 Dividend received (178,460,199) (232,822,339) Bad debt expense and loss on disposal of receivables 114,753,837,999 98,186,842,299 Retirement benefits 4,961,517,936 4,754,020,152 Depreciation 13,926,213,844 13,278,266,528 Amortization 7,673,834,471 6,920,354,234 Loss on foreign currency translation 64,020,906,906 11,773,479,686 Loss on valuation of derivatives - 799,000,000 (Decrease) increase in provision for unused credit limit (433,850,851) 1,501,400,815 (Decrease) increase in provision for others 9,079,488,327 (899,560,160) Loss from sale of property and equipment 593,544,244 81,595,456 Other operating losses 649,419,811 140,502,637 Reversal of impairment loss of financial assets AFS (54,123,600) (67,000,000) Gain on foreign currency translation - (13,249,097) Gain on valuation of derivatives (64,059,000,000) (11,767,500,000) Amortization of present value discounts of card asset (9,378,140,749) (23,080,028,495) Amortization of deferred origination fees of card assets (9,216,903,158) (10,117,027,449) Gain from sale of property and equipment (80,795,812) (3,095,000) Other operating gains (98,123,997) (140,502,337)

Changes in working capital: Decrease (increase) in card assets 499,715,163,929 (191,380,340,206) Increase in other financial assets (7,746,943,649) (5,799,746,264) Increase in other non-financial assets (9,928,533,288) (2,402,187,070) Increase in derivative assets - (12,629,999,999) Decrease in retirement benefit obligations (1,363,786,702) (1,755,860,759) Decrease in plan asset 1,404,207,714 658,753,726 Increase in derivative liabilities - 11,724,000,000 Decrease in capital lease liabilities (569,661,229) (540,964,321) Decrease in other financial liabilities (89,004,730,902) (31,253,267,031) Increase in other non-financial liabilities 7,492,918,739 26,330,451,805

Cash generated from operating activities Interest received 10,737,465,816 11,501,389,530 Interest paid (144,477,387,323) (165,480,031,763) Dividend received 178,460,199 232,822,339 Income tax paid (30,731,028,724) (42,956,545,250)

Net cash (used in) provided by operating activities 627,855,971,238 (28,194,790,031)

(Continued)

HYUNDAI CARD CO., LTD. AND ITS SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (CONTINUED)

FOR THE SIX MONTHS ENDED JUNE 30, 2013 AND 2012

(Unit: Korean won)

Six months ended

June 30, 2013 Six months ended

June 30, 2012

CASH FLOWS FROM INVESTING ACTIVITIES:

Disposal of financial assets AFS ￦ 54,123,600 ￦ 67,000,000 Disposal of property and equipment 94,432,052 3,100,000 Disposal of intangible assets - 1,250,000,000 Net decrease in deposit 16,504,034,090 9,860,120,861 Net decrease in bank deposit (2,500,000) - Acquisition of property and equipment (19,870,172,670) (75,042,053,649) Acquisition of intangible assets (12,599,018,787) (3,806,501,973)

Net cash used in investing activities (15,819,101,715) (67,668,334,761)

CASH FLOWS FROM FINANCING ACTIVITIES: Increase in borrowings 2,765,000,000,000 4,190,000,000,000 Proceeds from issue of bonds payable 1,589,863,444,525 1,836,689,791,347 Acquisition of subsidiaries - 9,910,000 Repayment of borrowings (3,027,500,000,000) (4,290,000,000,000) Repayment of bonds payable (1,865,626,663,810) (1,623,797,000,000)

Net cash (used in) provided by financing activities (538,263,219,285) 112,902,701,347

NET INCREASE IN CASH AND CASH EQUIVALENTS 73,773,650,238 17,039,576,555 CASH AND CASH EQUIVALENTS, BEGINNING OF

THE PERIOD 791,547,295,193 830,022,903,023 CASH AND CASH EQUIVALENTS, END OF THE

PERIOD ￦ 865,320,945,431 ￦ 847,062,479,578

(Concluded)

See accompanying notes to condensed consolidated financial statements.

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HYUNDAI CARD CO., LTD. AND ITS SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

AS OF JUNE 30, 2013 AND DECEMBER 31, 2012, AND

FOR THE THREE MONTHS AND SIX MONTHS ENDED JUNE 30, 2013 AND 2012 1. GENERAL:

Hyundai Card Co., Ltd. (the “Parent”), is engaged in the credit card business under the Specialized Credit Financial Business Law of Korea. On June 15, 1995, the Parent acquired the credit card business of Korea Credit Circulation Co., Ltd., and on June 16, 1995, the Korean government granted permission to the Parent to engage in the credit card business. As of June 30, 2013, the Parent has approximately 8.74 million card members, 2.03 million registered merchants and 159 marketing centers, branches and posts. Its head office is located in Yoido, Seoul. As of June 30, 2013, the total common stock of the Parent is ￦802,326 million. The shareholders of the Parent and their respective ownerships as of June 30, 2013 and December 31, 2012, are as follows:

Shareholder June 30, 2013 December 31, 2012 Number of shares % of ownership Number of shares % of ownership

Hyundai Motor Co., Ltd. 59,301,937 36.96 50,572,187 31.52 Kia Motors Co., Ltd. 18,422,142 11.48 18,422,142 11.48 Hyundai Steel Co., Ltd. - 0.00 8,729,750 5.44 GE Capital Int'l Holdings 69,000,073 43.00 69,000,073 43.00 Hyundai Commercial Inc. 8,889,622 5.54 8,889,622 5.54 Others 4,851,512 3.02 4,851,512 3.02 Totals 160,465,286 100.00 160,465,286 100.00

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:

The Company maintains its official accounting records in the Republic of Korean won (“Won”) and prepares condensed consolidated financial statements in conformity with Korean statutory requirements and Korean International Reporting Standards (“K-IFRS”), in Korean language (Hangul). Accordingly, these condensed consolidated financial statements are intended for use by those who are informed about K-IFRS and Korean practices. Certain information included in the Korean language financial statements, but not required for a fair presentation of the Company’s financial position, operating results, changes in shareholders’ equity or cash flows, is not presented in the accompanying condensed consolidated financial statements.

(1) Basis of Preparation The Company’s interim consolidated financial statements for the six months ended June 30, 2013, are prepared in accordance with K-IFRS 1034, Interim Financial Reporting. The Company’s accounting policies applied for the accompanying interim consolidated financial statements are the same as the policies applied for the preparation of condensed consolidated financial statements for the year ended December 31, 2012, except for the effects from the introduction of new and revised accounting standards or interpretations as described below.

- 4 -

1) Accounting standards and interpretations that were newly applied for the six months ended June 30, 2013, and changes in the Company’s accounting policies are as follows:

Amendment to K-IFRS 1001, Presentation of financial statements: Presentation of Items of Other Comprehensive Income (Revised) The amendments to K-IFRS 1001 require the Company to present items in the other comprehensive income section to be grouped into those that will not be reclassified subsequently to profit or loss, and will be reclassified subsequently to profit or loss when specific conditions are met. These amendments have an effect only on presentation of consolidated financial statements and do not have an effect on the Company’s financial position or operating results. The comparative consolidated financial statements are restated retrospectively applying the amendments. K-IFRS 1019, Employee Benefits (Revised) The amendments to K-IFRS 1019 require the recognition of actuarial gains and losses in other comprehensive income and hence eliminate the ‘corridor approach’ and ‘immediate recognition in profit and loss approach’ permitted under the previous version. Expected return on plan assets is measured using the discount rate used in measuring defined benefit obligations instead of using an independent expected return and presented in net interest on the net defined benefit liability. Meanwhile, the Company shall recognize past service cost as an expense at the earlier date between when the plan amendment or curtailment occurs and when the entity recognizes related restructuring costs or termination benefits. The Company applied the effect of changes in accounting policy retrospectively and the comparative consolidated financial statements are restated retrospectively applying the amendments. K-IFRS 1107, Financial Instruments: Disclosures – Offsetting Financial Assets and Financial Liabilities (Revised) The amendments to K-IFRS 1107 increase the disclosure requirements to include information about offsetting financial assets and financial liabilities. The revised accounting standards require disclosure of information on conditional rights of setoff that are enforceable and exercisable only in the events mentioned in agreements regardless of meeting some or all of the offsetting criteria in K-IFRS 1032. The Company discloses the information comparatively (See Note 29 (2)). K-IFRS 1110, Consolidated Financial Statements (Issued) The standard supersedes K-IFRS 1027 Consolidated and Separate Financial Statements and SIC-2012 Consolidation – Special Purpose Entities. K-IFRS 1110 establishes a single source of guidance in the application of definition of control. The standard states that an investor controls an investee when it is exposed, or has rights, to variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee. These enactments referred above do not have an effect on the Company’s consolidated financial statements and disclosures. K-IFRS 1111, Joint Arrangements (Issued) K-IFRS 1111 deals with how a joint arrangement of which two or more parties have joint control should be determined. Under K-IFRS 1111, joint arrangements are classified as joint operations or joint ventures, depending on the rights and obligations of the parties to the arrangements. A joint operation is a joint arrangement whereby the parties that have joint control of the arrangement (i.e., joint operators) have rights to the assets, and obligations for the liabilities, relating to the arrangement. A joint venture is a joint arrangement whereby the parties that have joint control of the arrangement (i.e., joint venturers) have rights to the net assets of the arrangement. Under joint operations, a joint operator recognizes and measures assets, liabilities, related revenues and expenses in relation to its interest in the arrangement. Under joint ventures, a joint venturer recognizes an investment and accounts for that investment using the equity method. These enactments referred above do not have an effect on the Company’s consolidated financial statements and disclosures.

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K-IFRS 1112, Disclosures of Interests in Other Entities (Issued) K-IFRS 1112 improves disclosures of reporting entities that have an interest in a subsidiary, a joint arrangement, an associate or unconsolidated structured entity. The standard requires an entity to disclose the nature of, and risks associated with, its interests in other entities and the effects of those interests on its financial position, financial performance and cash flows. The Company discloses the information on interests in subsidiaries (See Note 4). K-IFRS 1113, Fair Value Measurements (Issued)

K-IFRS 1113 establishes a single source of guidance for fair value measurements and disclosures about fair value measurements. The standard defines fair value, establishes a framework for measuring fair value and requires disclosures about fair value measurements. The standard defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (i.e., an exit price). When measuring fair value, an entity uses the assumptions that market participants would use when pricing the asset or liability. The standard explains that a fair value measurement requires an entity to determine the particular asset or liability being measured, the market in which an orderly transaction would take place for the asset and liability and the appropriate valuation techniques to use when measuring fair value. Also, the standard requires wider disclosures about fair value measurements. These enactments referred above do not have a significant effect on the Company’s consolidated financial statements and disclosures. The effects on consolidated statement of financial position and consolidated statement of comprehensive income by accounting standards and interpretations that were newly applied for the six months ended June 30, 2013, and changes in the Company’s accounting policies are as follows: (Consolidated statement of financial position)

As of December 31, 2012 Before changes After changes

Attributable to owners of the Company Share capital and capital surplus ￦ 860,030,873,955 ￦ 860,030,873,955 Retained earnings 1,339,725,219,219 1,348,744,482,014

Reserve (7,485,485,483) (16,504,748,278) Non-controlling interests 19,820,000 19,820,000

￦ 2,192,290,427,691 ￦ 2,192,290,427,691 (Consolidated statement of comprehensive income)

For the six months ended June 30, 2012 Before changes After changes

Operating income ￦ 120,712,044,165 ￦ 121,238,235,676 Non-operating income 991,325,979 991,325,979 Non-operating expenses 982,177,794 982,177,794 Income before income tax expenses 120,721,192,350 121,247,383,861 Income tax expenses 15,007,731,128 15,135,069,474 Net income for the period 105,713,461,222 106,112,314,387 Other comprehensive income 3,559,790,367 3,160,937,202 Items not reclassified subsequently to

profit or loss - (398,853,165) Remeasurements of the net defined

benefit liability - (526,191,511) Income tax effect - 127,338,346 Items reclassified subsequently to

profit or loss 3,559,790,367 3,559,790,367

Cash flow hedging gains or losses 4,719,199,909 4,719,199,909 Income tax effect (1,159,409,542) (1,159,409,542) Total comprehensive income for the

period

￦ 109,273,251,589 ￦ 109,273,251,589

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2) The Company has not applied or adopted earlier the following new and revised K-IFRSs that have been issued but are not yet effective:

K-IFRS 1032 (as revised in 2012), Financial Instruments: Presentation The amendments to K-IFRS 1032 clarify existing application issue relating to the offset of financial assets and financial liabilities requirements. The Group’s right of setoff must not be contingent upon any future events but enforceable anytime during the contract period in all of the circumstances — in the event of default, insolvency or bankruptcy of the entity or the counterparties as well as in the ordinary course of business. The amendments to K-IFRS 1032 are effective for annual periods beginning on or after January 1, 2014. The Company does not anticipate that these amendments referred above will have a significant effect on the Company’s consolidated financial statements and disclosures.

3. CRITICAL ACCOUNTING JUDGMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY:

In the application of the Company’s accounting policies, management is required to make judgments, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates. The application of the Company’s accounting policies and the judgments by management on sources of estimation uncertainty are the same as those of the consolidated financial statements as of December 31, 2012.

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4. SUBSIDIARY:

Details of the Parent’s subsidiaries as of June 30, 2013 and December 31, 2012, are as follows:

Place of

incorporation and operation

Voting share (%)

Companies Major operation June 30, 2013 December 31, 2012

End of reporting period

PRIVIA 2nd SPC Asset securitization Korea 0.9 0.9 December PRIVIA 3rd SPC Asset securitization Korea 0.9 0.9 January

The subsidiaries were established for the Parent’s business activity. The Parent has a power over the subsidiaries due to the fact that the Parent involves in the objectives and design of the subsidiaries and exposes to risks and rewards of them. Also, all the decision makings processes of the subsidiaries are operated on autopilot by provisions and articles of association. The Parent is considered to have an ability to use power because the Parent has a control over the changes of provisions and articles of association. By those reasons, the Parent includes the special-purpose entities under consolidation. Meanwhile, in case that default occurs by the subsidiaries related to derivative contracts hedging risks arising from debentures issued for asset securitization, counterparties of the derivative contracts can claim for reimbursement to the Parent.

5. RESTRICTED CASH AND DEPOSITS:

Restricted deposits and others as of June 30, 2013 and December 30, 2012, are as follows (Unit: Won in millions):

Type Entity June 30, 2013 December 31, 2012 Restriction

Deposits KookminBank and others

￦ 19

￦ 16

Guarantee deposits for overdraft

Shinhan Bank

and others 33,000 33,000 Secured deposits

Mirae Asset Securities 13 13

Social enterprise fund

Other financial

assets

Korea Asset Management Corporation 9,246 9,246 Escrow account

￦ 42,278 ￦ 42,275

6. CARD ASSETS:

Card assets by customer as of June 30, 2013 and December 31, 2012, are as follows (Unit: Won in millions):

June 30, 2013 December 31, 2012 Households Corporates Total Households Corporates Total

CARD ASSETS : Card receivables (*) ￦ 5,359,131 ￦ 548,379 ￦5,907,510 ￦ 6,116,731 ￦ 479,630 ￦6,596,361 Cash advances 884,799 - 884,799 940,019 - 940,019 Card loans (*) 2,503,435 - 2,503,435 2,351,470 - 2,351,470

Total 8,747,365 548,379 9,295,744 9,408,220 479,630 9,887,850 Allowance for doubtful accounts (181,021) (3,961) (184,982) (176,050) (4,762) (180,812)

Book value ￦ 8,566,344 ￦ 544,418 ￦9,110,762 ￦ 9,232,170 ￦ 474,868 ￦9,707,038 Composition rate 94.02% 5.98% 100.00% 95.11% 4.89% 100.00%

(*) Adjusted for deferred origination fees and present value discounts.

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7. ALLOWANCE FOR DOUBTFUL ACCOUNTS:

Changes in the allowance for doubtful accounts for the six months ended June 30, 2013 and 2012, are as follows (Unit: Won in millions):

Six months ended June 30, 2013 Card

receivables Cash

advances Card loans Loans Other assets Total Balance at January 1, 2013 ￦ 65,652 ￦ 33,786 ￦ 81,374 ￦ - ￦ 2,267 ￦ 183,079

Bad debt expenses (811) (231) (328) - - (1,370) Bad debt recovered 359 489 151 - - 999 Disposition and repurchase (18,180) (12,045) (17,149) - - (47,374)

Provision of (reversal of) allowance for doubtful accounts 14,864 9,533 27,518 - 480 52,395

Balance at June 30, 2013 ￦ 61,884 ￦ 31,532 ￦ 91,566 ￦ - ￦ 2,747 ￦ 187,729

Six months ended June 30, 2012 Card

receivables Cash

advances Card loans Loans Other assets Total Balance at January 1, 2012 ￦ 68,773 ￦ 37,910 ￦ 67,071 ￦ 30 ￦ 2,306 ￦ 176,090

Bad debt expenses (1,033) (249) (108) - - (1,390) Bad debt recovered 349 559 184 - - 1,092 Disposition and repurchase (10,757) (7,250) (8,045) - - (26,052)

Provision of (reversal of) allowance for doubtful accounts 7,647 3,790 19,555 - 64 31,056

Balance at June 30, 2012 ￦ 64,979 ￦ 34,760 ￦ 78,657 ￦ 30 ￦ 2,370 ￦ 180,796

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8. PROPERTY AND EQUIPMENT:

The changes in book value of property and equipment for the six months ended June 30, 2013 and 2012, are as follows (Unit: Won in millions):

Six months ended June 30, 2013

Beginning balance Acquisition Reclassification(*) Disposal Depreciation

Ending balance

Land ￦ 122,012 ￦ - ￦ - ￦ - ￦ - ￦ 122,012 Buildings 60,331 5,552 6,952 - (839) 71,996 Vehicles 163 - - (10) (46) 107 Fixtures and equipment 56,690 4,777 1,592 (597) (12,486) 49,976 Finance lease assets 1,389 - - - (555) 834 Construction in

progress 23,798 9,541 (8,477) - - 24,862 Total ￦ 264,383 ￦ 19,870 ￦ 67 ￦ (607) ￦ (13,926) ￦ 269,787

(*) ￦55 million of construction in progress is reclassified to advanced payments and ￦122 million of fixtures

and equipment is reclassified from construction in progress in intangible assets (see Note 9).

Six months ended June 30, 2012

Beginning balance Acquisition Reclassification(*) Disposal Depreciation

Ending balance

Land ￦ 83,995 ￦ 34,165 ￦ - ￦ - ￦ - ￦ 118,160 Buildings 42,187 22,169 347 - (758) 63,945 Vehicles 270 76 - - (72) 274 Fixtures and equipment 57,974 13,179 137 (82) (11,892) 59,316 Finance lease assets 2,500 - - - (556) 1,944 Construction in

progress 472 5,453 5,256 - - 11,181 Total ￦ 187,398 ￦ 75,042 ￦ 5,740 ￦ (82) ￦ (13,278) ￦ 254,820

(*) ￦5,740 million of construction in progress is reclassified from advanced payments.

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9. INTANGIBLE ASSETS:

The changes in intangible assets for the six months ended June 30, 2013 and 2012, are as follows (Unit: Won in millions):

(*) ￦122 million of construction in progress is reclassified to fixtures and equipment (see Note 8).

(*) ￦804 million of construction in progress is reclassified to advanced payments.

Six months ended June 30, 2013

Beginning balance Acquisition

Reclassification (*) Disposal Amortization

Ending balance

Development cost ￦ 34,747 ￦ 3,008 ￦ 4,111 ￦ - ￦ (5,942) ￦ 35,924 Industrial

property rights 76 - - - (20) 56 Others 7,829 - - - (1,712) 6,117 Construction in

progress 11,041 9,591 (4,233) - - 16,399 Membership 20,971 - - - - 20,971

Total ￦ 74,664 ￦ 12,599 ￦ (122) ￦ - ￦ (7,674) 79,467

Six months ended June 30, 2012

Beginning balance Acquisition

Reclassification (*) Disposal Amortization

Ending balance

Development cost ￦ 36,656 ￦ 1,444 ￦ 482 ￦ - ￦ (5,123) ￦ 33,459 Industrial

property rights 116 - - - (20) 96 Others 11,369 - - - (1,777) 9,592 Construction in

progress

2,101 2,363 (1,286) - - 3,178 Membership 22,734 - - (1,250) - 21,484

Total ￦ 72,976 ￦ 3,807 ￦ (804) ￦ (1,250) ￦ (6,920) ￦ 67,809

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10. ASSETS PLEDGED AS COLLATERAL:

Land and buildings amounting to￦1,179 million are provided as collateral for leasehold deposit received as of June 30, 2013.

11. BORROWINGS:

Borrowings as of June 30, 2013 and December 31, 2012, are as follows (Unit: Won in millions): Annual interest

rates (%) Maturity

Borrowed from June 30, 2013 December 31, 2012 Commercial

papers - - - ￦ - ￦ 350,000

Borrowings Hana bank and seven others 3.56–5.55 2013.6.27–

2014.7.19 225,000 137,500

￦ 225,000 ￦ 487,500 12. BONDS PAYABLE:

Bonds payable issued by the Company and outstanding as of June 30, 2013 and December 31, 2012, are as follows (Unit: Won in millions):

Annual interest rates (%)

Maturity

June 30, 2013 December 31, 2012 Par value Issue price Par value Issue price

Short-term debentures 2.91–3.47 2013.7.2–

2013.11.6 ￦ 110,000

￦ 110,000

￦ 170,000

￦ 170,000

Current portion of long-term debentures

2.91–6.73, 1M USD Libor+0.724

2013.7.12–2014.6.15

1,965,825 1,965,825 1,707,580 1,707,580 Long-term

debentures 2.77–6.75,

1M USD Libor+0.724 1M USD Libor+1.5

2014.7.7–2019.7.31 4,256,880 4,256,880 4,665,067 4,665,067

Discounts on bonds (7,794) (9,471) Bonds payable, net ￦ 6,324,911 ￦6,533,176

The outstanding bonds payable are non-guaranteed corporate bonds, with their principals to be redeemed by installment or at maturity. Bond issuance costs are recorded as discounts on bonds payable and amortized using the effective interest rate method.

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13. FINANCE LEASE LIABILITIES:

(1) Lease contract

The Company has a three-year finance lease for electronic equipment. The Company has a bargain purchase option at expiration date of lease contract. The lessor has the legal ownership of the finance lease, whose book value amounts to ￦834 million and ￦1,389 million as of June 30, 2013 and December 31, 2012, and which are set as collateral for finance lease obligation. (2) Finance lease liabilities as of June 30, 2013 and December 31, 2012, are as follows (Unit: Won in millions):

June 30, 2013 December 31, 2012 Minimum lease payments

Present value of minimum lease payments

Minimum lease payments

Present value of minimum lease payments

Less than 1 year ￦ 902 ￦ 883s ￦ 1,202 ￦ 1,154 1–5 years - - 301 298 Present value discounts (19) (51)

Present value ￦ 883 ￦ 1,452

14. RETIREMENT BENEFIT PLAN:

(1) Defined Contribution Plan

The expense recognized in the condensed consolidation statements of comprehensive income related to postemployment benefit plan under the defined contribution plan for the six months ended June 30, 2013 and 2012, are as follows (Unit: Won in millions):

June 30, 2013 June 30, 2012

Defined contribution plan

￦ 9 ￦ 4

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(2) Defined benefit plan

1) General

The Company operates a defined benefit plan that is linked to final payment. Plan assets mainly consist of deposits and expose to risk of fall in interest rate.

2) Net defined benefit obligation Changes in net defined benefit obligation for the six months ended June 30, 2013 and 2012, are as follows (Unit: Won in millions):

For the six months ended June 30, 2013 The present

value of the defined benefit

obligation Plan assets National

pension fund Net defined

benefit obligation Beginning balance ￦ 44,474 ￦ (33,745) ￦ (34) ￦ 10,695 Contributions from

the employer

- - - - Current service cost 4,782 - - 4,782 Interest expense

(income)

707

(536)

-

171 The return on plan

assets, excluding amounts included in interest income above

-

5

-

5 Actuarial gains and

losses arising from changes in demographic assumptions

-

-

-

- Actuarial gains and

losses arising from changes in financial assumptions

(472)

-

-

(472)

Transfer of employees between the Company and its related companies

291

(322)

-

(31) Benefits paid (1,655) 1,723 3 71 Ending balance ￦ 48,127 ￦ (32,875) ￦ (31) ￦ 15,221

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For the six months ended June 30, 2012 The present

value of the defined benefit

obligation Plan assets National

pension fund Net defined

benefit obligation Beginning balance ￦ 37,007 ￦ (19,195) ￦ (37) ￦ 17,775 Contributions from the

employer - - - -

Current service cost 4,386 - - 4,386 Interest expense

(income)

732

(368)

-

364 The return on plan

assets, excluding amounts included in interest income above

-

(41)

-

(41)

Actuarial gains and losses arising from changes in demographic assumptions

-

-

-

- Actuarial gains and

losses arising from changes in financial assumptions

567

-

-

567

Transfer of employees between the Company and its related companies

(531)

176

-

(355)

Benefits paid (1,225) 483 - (742) Ending balance ￦ 40,936 ￦ (18,945) ￦ (37) ￦ 21,954

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15. UNEARNED REVENUE:

Details of unearned revenue as of June 30, 2013 and December 31, 2012, are as follows (Unit: Won in millions):

June 30, 2013 December 31, 2012

Customer loyalty program ￦ 327,990 ￦ 320,328 Membership fee 77,144 77,450 Others 84 52

￦ 405,218 ￦ 397,830

16. PROVISION:

Changes in provisions for the six months ended June 30, 2013 and 2012, are as follows (Unit: Won in millions):

June 30, 2013

Unused

commitment Point Customer loyalty Total Beginning ￦ 46,386 ￦ 15,509 ￦ 13,792 ￦ 75,687 Increase (decrease) (434) 4,180 1,687 5,433 Ending ￦ 45,952 ￦ 19,689 ￦ 15,479 ￦ 81,120

June 30, 2012

Unused

commitment Point Customer loyalty Total Beginning ￦ 47,167 ￦ 11,240 ￦ 21,826 ￦ 80,233 Increase (decrease) 1,501 1,239 (2,138) 602 Ending ￦ 48,668 ￦ 12,479 ￦ 19,688 ￦ 80,835

The above amounts as of June 30, 2013, include provision for deposits in escrow account of ￦4,944 million, and provision for pending litigations of ￦10,535 million, in which provision includes deposits in escrow account of ￦4,467 million (See Note 24(3)).

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17. DERIVATIVES AND HEDGE ACCOUNTING: (1) There are no derivative instruments held for trading as of June 30, 2013 and December 31, 2012.

(2) Cash flow hedge

The Company removes the volatility risk of future cash flow of a hedged item, such as borrowings or bonds, caused by changes in market interest rates or in foreign currency rates, by using derivatives instruments such as an interest rate swap or currency swap. The Company’s policies and strategies of cash flow hedge are the same as those as of December 31, 2012.

1) Fair value of cash flow hedge as of June 30, 2013 and December 31, 2012, are as follows (Won in millions):

June 30, 2013 December 31, 2012 Contract

Amount Asset Liabilities

Contract Amount Asset

Liabilities

Interest rate

swap ￦ 958,000 ￦ 2,997 ￦ 2,587 ￦ 778,000 ￦ 901 ￦ 3,925 Cross-currency

swap 937,161 12,380 943 873,092 - 49,630 Total ￦ 1,895,161 ￦ 15,377 ￦ 3,530 ￦ 1,651,092 ￦ 901 ￦ 53,555

For transactions between local currency and foreign currencies, the unsettled contract amount of transaction is translated applying the basic foreign exchange rate at the end of reporting period to the contract amount in foreign currencies. For transaction between foreign currencies and other foreign currencies, the unsettled contract amount is the amounts translated applying the basic foreign exchange rate at the end of reporting period to the contract amount in foreign currencies purchased.

2) Expected cash flow for cash flow hedge Maximum potential amounts of future payments for cash flow hedges by the period when the cash flows are expected to occur and when they are expected to affect income (loss) for the period are as follows (Won in millions):

June 30, 2013 December 31, 2012

Less than 1 month ￦ (2,918) ￦ (2,079) 1–3 months (3,880) (3,881) 3–12 months 1,172 (25,813) 1–5 years 6,706 (47,039)

￦ 1,080 ￦ (78,812)

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18. SHARE CAPITAL:

There was no change in share capital and capital surplus for the six months ended June 30, 2013. Meanwhile, Hyundai motor company (Parent company) acquired 8,729,750 shares of Hyundai Card Co., Ltd. from Hyundai Steel Co., Ltd., and the ownership of Parent company increased by 5.44%.

19. RETAINED EARNINGS:

(1) Details of retained earnings as of June 30, 2013 and December 31, 2012, are as follows (Unit: Won in millions):

June 30, 2013 December 31, 2012

Legal reserve (*) ￦ 20,143 ￦ 20,143 Reserve for bad loans (see Note 21) 611,622 439,031 Unappropriated retained earnings 800,296 889,571

￦ 1,432,061 ￦ 1,348,745

(*) Korean Commercial Code requires a company to appropriate at least 10 percent of dividends paid as

legal reserve for each fiscal period, until the reserve equals 50 percent of paid-in capital. This reserve is not available for payment of cash dividends; however, it can be used to reduce deficit or be transferred to capital.

(2) Changes in retained earnings for the six months ended June 30, 2013 and 2012, are as follows (Unit: Won in

millions):

Six months ended June 30,

2013 2012

Beginning ￦ 1,348,745 ￦ 1,154,446 Net income attributable to the owners of the

Company 83,316 106,112

Ending ￦ 1,432,061 ￦ 1,260,558 20. RESERVES:

Details of reserves for the six months ended June 30, 2013 and 2012, are as follows (Unit: Won in millions):

Six months ended June 30,

2013 2012

Beginning ￦ (16,504) ￦ (17,813) Cash flow hedging gains (losses) 440 4,718

Interest rate swap 3,433 174 Currency swap (2,993) 4,544

Tax effect related to cash flow hedging gains (losses) (89) (1,159) Remeasurements of the net defined benefit liability 467 (526) Tax effect related to remeasurements of the net defined

benefit liability (113) 127 Ending ￦ (15,799) ￦ (14,653)

Cash flow hedging reserve represents the cumulative gains or losses of hedging instruments considered effective portion in hedge accounting. The cumulative deferred gains or losses of hedging instruments is reclassified to income (loss) for the period only when gains or losses of the hedged item is reflected in income (loss) for the period or is reflected to the initial book value of non-financial hedged item in accordance with relevant accounting policy.

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21. RESERVE FOR BAD LOANS:

Reserve for bad loans is calculated and disclosed according to Article 11, Supervisory Regulation of Specialized Credit Financial Business.

(1) Details of reserve for bad loans as of June 30, 2013 and December 31, 2012, are as follows (Unit: Won in

millions):

June 30, 2013 December 31, 2012

Accumulated reserve for bad loans ￦ 611,622 ￦ 439,031 Expected reserve for bad loans 7,358 172,591 Reserve for bad loans ￦ 618,980 ￦ 611,622

(2) The provision of reserve for bad loans and adjusted income after reserve for bad loans for the six months

ended of June 30, 2013 and 2012, are as follows (Unit: Won in millions):

Six months ended June 30, 2013 2012 Net income attributable to the owners of the Company ￦ 83,316 ￦ 106,112 Provision (7,358) (15,306) Adjusted income after reserve for bad loans ￦ 75,958 ￦ 90,806

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22. GENERAL AND ADMINISTRATIVE EXPENSES:

Details of general and administrative expenses for the six months ended June 30, 2013 and 2012, are as follows (Unit: Won in millions): <PAYROLL> 2013 2012 Three months

ended June 30. Six months

ended June 30. Three months

ended June 30. Six months

ended June 30. Salaries wage ￦ 27,845 ￦ 57,248 ￦ 22,380 ￦ 41,794 Pension expenses 2,481 4,962 2,377 4,754 Employee benefits 6,538 14,507 7,021 14,567 36,864 76,717 31,778 61,115

<OTHER EXPENSES> 2013 2012 Three months

ended June 30. Six months

ended June 30. Three months

ended June 30. Six months

ended June 30. Travel expenses ￦ 760 ￦ 1,221 ￦ 777 ￦ 1,279 Communication expenses 6,054 11,158 5,575 10,989 Post expense 3,694 7,143 3,351 6,471 Rental expenses 6,463 12,626 6,846 13,586 Taxes dues 6,845 12,613 3,925 7,702 Repair and maintenance expenses 167 309 145 296 Insurance premiums 114 125 184 188 Entertainment expenses 140 344 258 442 Advertising expenses 12,956 18,702 10,220 20,019 Supply expenses 464 1,238 627 1,156 Vehicle maintenance expenses 7 10 3 11 Periodicals expenses 43 67 261 288 Publication expenses 1,599 3,249 1,684 3,515 Training expenses 828 1,663 1,428 2,271 Electronic data processing expense

10,031 20,958 8,026 16,371

Expense for temporary staff 8,796 16,734 9,456 18,206 Professional expenses 34,691 69,253 43,573 77,086 Delivery expense 661 1,551 1,117 2,097 Commission expense 6,795 12,771 6,067 11,939 Business activities expense 909 1,657 1,126 2,041 Depreciation expense 6,895 13,926 6,768 13,278 Amortization expense 3,913 7,674 3,480 6,920 Event expense 743 1,096 1,126 1,793 Conference expense 227 323 101 197 Building administrative expense 1,425 2,539 439 1,157 ￦ 115,220 ￦ 218,950 ￦ 116,563 ￦ 219,298

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23. INCOME TAX FROM CONTINUED OPERATION:

(1) Income tax expense for the six months ended June 30, 2013 and 2012, are summarized as follows (Unit: Won in millions):

Six months ended June 30, 2013 2012 Income tax currently payable ￦ 45,541 ￦ 37,889 Changes in deferred tax assets by temporary differences (*) (15,132) (21,722)

Total 30,409 16,167 Changes in income tax expense reflected directly in shareholders’

equity (202) (1,032) Income tax expense ￦ 30,207 ￦ 15,135 (*) Ending net deferred tax assets due to temporary differences ￦ 150,799 ￦ 134,125

Beginning net deferred tax assets due to temporary differences 135,667 112,403 Changes in net deferred tax assets due to temporary differences ￦ (15,132) ￦ (21,722)

(2) Income tax expenses reflected directly in shareholders’ equity for the six months ended June 30, 2013, are as follows (Unit: Won in millions):

January 1, 2013 Decrease June 30, 2013 Tax effect related to the cash

flow hedging reserve gains and losses ￦ 2,367 ￦ (89) ￦ 2,278

Tax effect related to remeasurements of the net defined benefit liability

2,880

(113)

2,767

￦ 5,247 ￦ (202) ￦ 5,045

(3) A reconciliation between income before income tax and income tax expense for the six months ended June 30, 2013 and 2012, are as follows (Unit: Won in millions):

Six months ended June 30, 2013 2012

Income before income tax ￦ 113,524 ￦ 121,247 Income tax payable by the statutory income tax rates 27,011 28,880 Tax reconciliations:

Non-deductible expenses 144 32 Deferred tax expense relating to changes in tax rates - - The amount of deductible temporary differences for which

no deferred tax asset is recognized - (11,384) True-up adjustment (*) (123) (3,463) Others (498) (1,407) (477) (16,222)

Any adjustments recognized in the period due to current tax of prior period 3,673 2,477

Income tax from continued operation ￦ 30,207 ￦ 15,135

(*) True-up adjustment due to difference in the amount disclosed in prior-year’s audit report and the actual tax return amount.

- 21 -

24. CONTINGENCIES AND COMMITMENTS:

Contingencies and commitments are the same as those of the consolidated financial statements as of December 31, 2012, except for the following:

(1) Credit line agreement

a. The following are credit line agreements as of June 30, 2013 and December 31, 2012 (Unit: Won in millions):

Type Financial instruments June 30, 2013 December 31, 2012 Overdraft limit - ￦ - ￦ 50,000 Intraday overdraft limit Shinhan Bank and

5 others 360,000 280,000

b. Credit Facility Agreement

The Company entered into a Credit Facility Agreement with GE Capital European Funding & CO (“GECC”) on February 15, 2013. The credit facility limit that can be used by the Company is Euro equivalent of USD100 million. In terms of duration, the Agreement is renewable for one year from January 2014 until January 9, 2015, the maturity of the Credit Facility Agreement.

With regard to the Credit Facility Agreement, the Company, GECC, Hyundai Motor Company (“HMC”) and Kia Motors Corp. (“KMC”) entered into a Support Agreement with same contract period as of the Credit Facility Agreement. Under the Support Agreement, in case that the Company uses the credit facility line, each of HMC and KMC shall bear an amount equal to 41 percent and 15 percent of losses, respectively, which are any amount of obligations that have not been paid to GECC by the Company or otherwise received or collected by GECC from the Company.

c. Revolving Credit Facility

The Company has a revolving credit facility agreement with many financial institutions for credit line as of June 30, 2013, as follows (Unit: Won in millions):

Financial instruments Credit line Term Kookmin Bank ￦ 30,000 2012-11-07–2013-10-22 Kookmin Bank 100,000 2013-02-28–2014-02-28 Kookmin Bank 30,000 2013-05-29–2014-05-28 NH Bank 100,000 2013-03-29–2014-03-29 Citibank, Seoul 50,000 2012-12-24–2013-12-24 Shinhan Bank 50,000 2013-04-16–2014-04-15 Shinhan Bank 50,000 2013-05-31–2014-05-31 Shinhan Bank 50,000 2013-06-28–2014-06-28 Suhyup Bank 20,000 2013-03-06–2014-03-06 Korea Development Bank 10,000 2013-04-19–2014-04-19 Hana Bank 50,000 2013-02-01–2014-02-03 Standard Chartered Bank 30,000 2013-04-19–2014-04-19 Jeonbuk Bank 30,000 2013-05-28–2014-05-28

(2) Pending Lawsuits

As of June 30, 2013, the Company is involved in 26 cases (￦131,920 millions) as a defendant and 3 cases (￦1,807 millions) as a plaintiff in the pending lawsuits. The management of the Company does not anticipate that these pending lawsuits referred above will have a significant effect on the Company’s consolidated financial statements.

- 22 -

(3) Deposit for Loss Reimbursement As of June 30, 2013, the Company has deposits of ￦4,944 million and ￦4,302 million of proceeds and interests from the sale of Daewoo Engineering & Construction Co., Ltd.’s shares, respectively, in an escrow account and records ￦4,944 million of provision for proceeds and ￦4,467 million of provision for interests from the litigation relating to the sale of Daewoo Engineering & Construction Co., Ltd.’s shares (See Note 16).

(4) Guarantee

The Company has a performance guarantee from the Seoul Guarantee Insurance Co., Ltd., amounting to ￦474 million in connection with airline ticket payments and others.

(5) Contract of Sale of Receivables

The Company 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 Company sells the receivables that are 60 days or more past due or written off 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.

25. TRANSFERS OF FINANCIAL ASSETS:

The Parent transferred its card assets to special-purpose companies (“SPCs”) for asset securitization and SPCs issued Asset-Backed Securities(“ABSs”). The ABSs are collateralized by card assets as underlying assets. All of the transferred financial assets do not qualify for derecognition under K-IFRS 1039 because the Parent has retained substantially all the risks and rewards of ownership of the transferred asset. Therefore, the Parent continues to recognize the transferred financial assets in the separate financial statements. The details of ABSs and underlying assets as of June 30, 2013 and December 31, 2012, are as follows (Unit: Won in millions):

As of June 30, 2013

Maturity

Carrying amount Fair value Underlying

asset Senior

tranche Underlying

asset Senior

tranche Net

position PRIVIA 2nd SPC 2014.4.21 ￦1,230,471 ￦ 459,880 ￦ 1,255,270 ￦ 459,717 ￦ 795,553 PRIVIA 3rd SPC 2015.7.20 1,206,601 459,880 1,233,610 459,172 774,438 Discounts on bonds - (2,590) - - -

￦ 2,437,072 ￦ 917,170 ￦2,488,880 ￦ 918,889 ￦ 1,569,991

As of December 31, 2012

Maturity

Carrying amount Fair value Underlying

asset Senior

tranche Underlying

asset Senior

tranche Net

position PRIVIA 2nd SPC 2014.4.21 ￦ 1,055,990 ￦ 428,440 ￦ 1,074,693 ￦ 428,160 ￦ 646,533 PRIVIA 3rd SPC 2015.7.20 1,038,539 428,440 1,058,068 427,951 630,117 Discounts on bonds - (3,589) - - -

￦ 2,094,529 ￦ 853,291 ￦ 2,132,761 ￦ 856,111 ￦ 1,276,650

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26. TRANSACTION WITH RELATED PARTIES:

(1) Status of related parties

Related parties consist of entities related to the Company, postemployment benefits, a key management personnel and a close member of that person’s family, an entity controlled or jointly controlled and an entity influenced significantly. Details of related parties as of June 30, 2013, are as follows:

Companies

Parent company Hyundai Motor Company Other related parties GE Capital Int'l Holdings, Green air, Kia motor company, Kia Tigers, Busan

Finance Center AMC, Samwoo, WIA Magna Powertrain, Eukor Car Carriers, Innocean, Iljin Bearing, Jongro Academy, Chunbuk Hyundai motors FC, Jongro Eclass, Hyundai Kefico, Korea Credit Bureau, Hankook Economy News, Haevichi Country Club, Haevichi Hotel & Resort, Hyundai construction, Hyundai construction human resource development center, Hyundai Glovis, Hyundai Dymos, Hyundai City Corporation, Hyundai Life, Hyundai Rotem, Hyundai Materials, Hyundai Metia, Hyundai Movis, Hyundai BNG Steel, Hyundai farm land & development, Hyundai Steel Company, Hyundai C&I, Hyundai IHL, Hyundai energy, Hyundai engineering, Hyundai NGV, Hyundai MSEAT, Hyundai MnSoft, Hyundai AMCO, Hyundai Auto Ever Systems, Hyundai Wistco, Hyundai Wia, Hyundai Engineering & Steel Industries, Hyundai Architects & Engineers Associates, Hyundai Motors Electronic Industry, Hyundai Capital, Hyundai Commercial, Hyundai Powertech, Hyundai Fastech, Hyundai Hysco, HK Saving Bank and HMC Investment Securities

(2) Transaction with related companies for the six months ended June 30, 2013 and 2012, are as follows (Unit:

Won in millions):

Six months ended June 30, 2013 Six months ended June 30, 2012 Parent company

Other related parties

Total

Parent company

Other related parties

Total

Revenues Card revenue ￦ 74,394 ￦ 41,206 ￦ 115,600 ￦ 53,105 ￦ 27,777 ￦ 80,882 Rental revenue - 248 248 - 125 125 Others - 19,628 19,628 - 23,128 23,128

74,394 61,082 135,476 53,105 51,030 104,135 Expense Card expense - 27,784 27,784 15 111 126 General and

administrative expense 111 22,226 22,337 213 14,073 14,286

Others 40 28,765 28,805 - 26,430 26,430 151 78,775 78,926 228 40,614 40,842 Others Purchase of

property and equipment

- 10,289 10,289 76 8,368 8,444

Purchase of intangible assets - 3,287 3,287 - 1,148 1,148

Disposal of assets - 185,421 185,421 - 176,619 176,619 Total ￦ - ￦ 198,997 ￦ 198,997 ￦ 76 ￦ 186,135 ￦ 186,211

- 24 -

(3) Outstanding receivables, payables and guarantee from transactions with related parties as of June 30, 2013 and December 31, 2012, are as follows (Unit: Won in millions):

June 30, 2013 December 31, 2012

Parent company

Other related

parties Total

Parent company

Other related

parties

Total

Receivables Card asset ￦ 55,326 ￦175,393 ￦230,719 ￦64,580 ￦147,800 ￦212,380 Others 2,128 3,441 5,569 151 21,626 21,777 Allowance for doubtful accounts (609) (1,929) (2,538)

(710) (1,626) (2,336)

Total ￦ 56,845 ￦ 176,905 ￦233,750 ￦ 64,021 ￦ 167,800 ￦ 231,821 Payables Accounts payable ￦ 45,623 ￦ 56,199 ￦101,822 ￦ 87,354 ￦ 58,060 ￦145,414 Other 23 6,673 6,696 7 (5,489) (5,482)

Total ￦ 45,646 ￦ 62,872 ￦108,518 ￦ 87,361 ￦ 52,571 ￦139,932

The Company is being provided payment guarantees to GECC through credit facility agreement by HMC and KMC (See Note 24(1)).

(4) Granting of credit with related parties Granting of credit with related parties as of June 30, 2013, is as follows (Unit: Won in millions):

Grantor Grantee Method Credit limit Period Parent Hyundai Capital

Services, Inc.

Call loan 300,000 2012.11.1–2013.10.31 Hyundai Capital

Services, Inc.

Parent

Call loan 300,000 2012.11.1–2013.10.31 Call loan is granted only in case that any grantee demands credit line and there is residual fund, and the credit line currently is not being used.

(5) Compensation for key executives

1) Compensation cost for key executives for the six months ended June 30, 2013, consists of short-term employee benefit and retirement benefit.

2) Compensation for key management for the six months ended June 30, 2013 and 2012, consists of the following (Unit: Won in millions):

For the six months ended June 30 2013 2012 Short-term employee benefit ￦ 3,528 ￦ 2,568 Retirement benefit 996 839

Total ￦ 4,524 ￦ 3,407

3) Key management includes directors (including non-executive directors) and members of the audit committee with significant authority and responsibility over the Company’s plan, direction and control.

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27. RESERVES: Changes of reserves for the six months ended June 30, 2013, are as follows (Unit: Won in millions):

Six months ended June 30, 2013

Beginning

Balance

Increase Disposal Income tax

effect Ending

balance Reserves

Effective portion of changes in fair value of cash flow hedges ￦ (7,485) ￦ 288 ￦ 152 ￦ (89) ￦ (7,134)

Remeasurements of the net defined benefit liability (9,019) 467 - (113)

(8,665)

￦ (16,504) ￦ 755 ￦ 152 ￦ (202) ￦ (15,799) 28. FINANCIAL RISK MANAGEMENT:

(1) General

The Company is exposed to various financial risks such as credit risk, liquidity risk and market risk associated with financial instruments. The level of exposure to such risks, objectives of the Company and its risk management policy and procedures are outlined below. The Company’s risk management objectives, policy and procedures are the same as those for 2012.

(2) Credit risk

1) Level of exposure to credit risk

The Company’s maximum exposure to credit risk as of June 30, 2013 and December 31, 2012, is summarized as follows (Unit: Won in millions): June 30, 2013 December 31, 2012 Deposit ￦ 898,352 ￦ 824,576 Card asset (*1) 9,295,744 9,887,850 Other assets (*1, 2) 189,951 184,554 Unused commitment 33,655,697 32,974,864

Total ￦ 44,039,744 ￦ 43,871,844 (*1) Card asset is stated at book value before allowance for doubtful accounts. (*2) Other assets consist of accounts payable, unearned income and others.

- 26 -

2) Analysis of credit soundness of financial assets ① Credit soundness of card assets neither past due nor impaired as of June 30, 2013 and December 31,

2012, is summarized as follows (Unit: Won in millions):

June 30, 2013 December 31, 2012 Book value

before allowance

for doubtful accounts

Allowance for

doubtful accounts

Book

value

Book value before

allowance for doubtful accounts

Allowance for

doubtful accounts

Book

value Retail Card receivables and cash advances ￦ 6,098,921 ￦ (77,900) ￦6,021,021 ￦6,914,575 ￦ (83,591) ￦ 6,830,984

Card loans 2,367,936 (57,990) 2,309,946 2,238,022 (54,810) 2,183,212 Corporate Card receivables 515,927 (2,700) 513,227 450,389 (1,905) 448,484

Total

￦ 8,982,784 ￦ (138,590) ￦ 8,844,194 ￦ 9,602,986 ￦ (140,306) ￦ 9,462,680

② Credit quality of card assets past due but not impaired as of June 30, 2013 and December 31, 2012, are summarized as follows (Unit: Won in millions):

June 30, 2013

Less than

1 month 1–2 months 2–3 months More than 3 months Total

Retail ￦ 187,877 ￦ 27,516 ￦ - ￦ - ￦ 215,393 Corporate 13,974 15,829 - - 29,803 201,851 43,345 - - 245,196 Card assets

Card receivables 105,582 25,946 - - 131,528 Cash advances 27,638 5,442 - - 33,080 Card loans 68,631 11,957 - - 80,588

201,851 43,345 - - 245,196 Allowance for doubtful

accounts (7,568) (2,652) - - (10,220) Book value ￦ 194,283 ￦ 40,693 ￦ - ￦ - ￦ 234,976

December 31, 2012

Less than 1 month 1–2 months 2–3 months

More than 3 months Total

Retail ￦ 173,994 ￦ 29,994 ￦ - ￦ - ￦ 203,988 Corporate 13,485 2,653 - - 16,138 187,479 32,647 - - 220,126 Card assets

Card receivables 110,097 16,497 - - 126,594 Cash advances 18,102 4,378 - - 22,480 Card loans 59,280 11,772 - - 71,052

187,479 32,647 - - 220,126 Allowance for doubtful

accounts (7,051) (2,879) - - (9,930) Book value ￦ 180,428 ￦ 29,768 ￦ - ￦ - ￦ 210,196

- 27 -

③ Impaired card assets as of June 30, 2013 and December 31, 2012, are summarized as follows (Unit: Won in millions):

June 30, 2013 December 31, 2012 Card asset ￦ 67,764 ￦ 64,738 Allowance for doubtful accounts (36,172) (30,576)

Total ￦ 31,592 ￦ 34,162

3) Concentrations of credit risk Concentrations of credit risk by industry of corporate loans as of June 30, 2013 and December 31, 2012, are summarized as follows (Unit: Won in millions):

June 30, 2013 December 31, 2012 Book value

before allowance

for doubtful accounts

Ratio

Allowance for

doubtful accounts

Book

value

Book value before

allowance for doubtful accounts

Ratio

Allowance for

doubtful accounts

Book

value Financing ￦ 137,724 25.11% ￦ (195) ￦ 137,529 ￦ 121,927 25.42% ￦ (219) ￦ 121,708 Manufacturing 147,624 26.92% (798) 146,826 161,781 33.73% (863) 160,918 Service 188,090 34.30% (2,239) 185,851 149,343 31.14% (1,997) 147,346 Public 100 0.02% - 100 145 0.03% - 145 Others 74,841 13.65% (729) 74,112 46,434 9.68% (1,683) 44,751 Total ￦ 548,379 100.00% ￦ (3,961) ￦ 544,418 ￦ 479,630 100.00% ￦ (4,762) ￦ 474,868

(3) Liquidity risk The Company’s financial liabilities by residual contractual maturity as of June 30, 2013 and December 31, 2012, are classified as follows (Unit: Won in millions):

June 30, 2013

Immediate

payment Less than

1 year 1–5 years More than

5 years Total Borrowings ￦ - ￦ 111,842 ￦ 124,081 ￦ - ￦ 235,923 Bonds payable - 2,338,188 4,490,931 96,971 6,926,090 Derivatives liabilities - 3,077 882 - 3,959 Other liabilities 47,691 1,337,092 521 - 1,385,304

Total ￦ 47,691 ￦ 3,790,199 ￦ 4,616,415 ￦ 96,971 ￦ 8,551,276

These amounts include all cash inflows such as interests without discount and other liabilities are composed of accounts payable, accrued expense, deposit received, finance lease liabilities and guarantee deposit received.

December 31, 2012

Immediate

payment Less than

1 year 1–5 years More than

5 years Total Borrowings ￦ - ￦ 429,738 ￦ 64,417 ￦ - ￦ 494,155 Bonds payable - 2,108,561 4,801,662 230,914 7,141,137 Derivatives liabilities - 32,147 47,682 - 79,829 Other liabilities 42,139 1,421,832 192 - 1,464,163

Total ￦ 42,139 ￦ 3,992,278 ￦ 4,913,953 ￦ 230,914 ￦ 9,179,284

These amounts include all cash inflows such as interests without discount and other liabilities are composed of accounts payable, accrued expense, deposit received, finance lease liabilities and guarantee deposit received.

- 28 -

(4) Market risk The result of interest rate Value at Risk (VaR) calculated under normal distribution of interest rate risk as of June 30, 2013 and December 31, 2012, is as follows (Unit: Won in millions):

June 30, 2013 December 31, 2012 Interest rate VaR ￦ 4,892 ￦ 1,197

(5) Capital management

The Parent (specialized credit finance company) must maintain adjusted capital adequacy ratio in accordance with Specialized Credit financial business and subregulations, and the ratio for the credit card company must be more than 8 %.

This ratio is calculated dividing adjusted capital by adjusted total assets and all factors are based on consolidated financial statements. The Parent maintains an adjusted capital adequacy ratio of more than 8%.

29. FINANCIAL ASSETS AND FINANCIAL LIABILITIES:

(1) Fair value of financial assets and liabilities

The fair value of financial assets and financial liabilities as of June 30, 2013 and December 31, 2012, are summarized as follows (Unit: Won in millions):

June 30, 2013 December 31, 2012 Book value Fair value Book value Fair value Assets Financial assets

Cash and bank deposit ￦ 898,352 ￦ 898,352 ￦ 824,576 ￦ 824,576

Investment financial assets 1,767 1,767 1,767 1,767

Card assets 9,110,762 9,561,339 9,707,038 10,119,434 Other assets 187,862 190,183 182,292 182,697

Total ￦10,198,743 ￦10,651,641 ￦10,715,673 ￦11,128,474 Liabilities Financial liabilities Borrowings ￦ 225,000 ￦ 225,642 ￦ 487,500 ￦ 488,832

Bonds payable 6,324,911 6,498,762 6,533,176 6,740,956 Other liabilities 1,388,750 1,388,739 1,517,677 1,517,676

Total ￦ 7,938,661 ￦ 8,113,143 ￦ 8,538,353 ￦ 8,747,464 The Company’s valuation techniques and relevant policies with regard to the fair value are the same as those used for previous year.

- 29 -

(2) Netting on financial assets and financial liabilities Derivative assets and derivative liabilities recognized by the Company can be set off in accordance with the future events described in derivative master netting agreements. The effects of netting agreements as of June 30, 2013 and December 31, 2012, are as follows (Unit: Won in millions):

June 30, 2013

Related amounts not set off in the statement of financial

position

Gross amounts of recognized financial assets/

liabilities

Gross amounts of recognized financial

liabilities set off in the

statement of financial

position

Net amounts of financial

assets/liabilities presented in the statement of financial

position Financial

instruments

Cash collateral

pledged Net amount Financial assets

Derivatives assets ￦ 15,377 ￦ - ￦ 15,377 ￦ 1,096 ￦ - ￦ 14,281 Financial liabilities Derivatives liabilities ￦ 3,530 ￦ - ￦ 3,530 ￦ 1,096 ￦ - ￦ 2,434

December 31, 2012

Related amounts not set off in the statement of financial

position

Gross amounts of recognized financial assets/

liabilities

Gross amounts of recognized financial

liabilities set off in the

statement of financial

position

Net amounts of financial

assets/liabilities presented in the statement of financial

position Financial

instruments

Cash collateral

pledged Net amount Financial assets

Derivatives assets ￦ 901 ￦ - ￦ 901 ￦ 219 ￦ - ￦ 682 Financial liabilities Derivatives liabilities ￦ 53,555 ￦ - ￦ 53,555 ￦ 219 ￦ - ￦ 53,336

- 30 -

(3) Fair value hierarchy All financial instruments at fair value are categorized into three fair value hierarchy levels. The method of categorizing fair value hierarchy levels is the same as the one used for previous year. The table below provides the Company’s financial assets and financial liabilities recorded at fair value in the condensed consolidated statements of financial position as of June 30, 2013 and December 31, 2012, (Unit: Won in millions):

June 30, 2013

Book value Fair value

Level 1 Level 2 Level 3 Financial assets

Derivatives assets ￦ 15,377 ￦ 15,377 ￦ - ￦ 15,377 ￦ - Financial liabilities Derivatives liabilities ￦ 3,530 ￦ 3,530 ￦ - ￦ 3,530 ￦ -

December 31, 2012

Book value Fair value

Level 1 Level 2 Level 3 Financial assets

Derivatives assets ￦ 901 ￦ 901 ￦ - ￦ 901 ￦ - Financial liabilities Derivatives liabilities ￦ 53,555 ￦ 53,555 ￦ - ￦ 53,555 ￦ -

The table below provides the Company’s financial assets and financial liabilities that are carried at cost since the fair values of the financial instruments are not readily determinable in the condensed consolidated statements of financial position as of June 30, 2013 and December 31, 2012 (Unit: Won in millions):

As of June 30, 2013 As of December 31, 2012 Investment financial assets

Financial assets AFS(*) ￦ 1,767 ￦ 1,767 (*) Financial assets AFS are unlisted equity securities and recorded as at cost since they do not have quoted

prices in an active market and the fair values are not measured with reliability.

(4) The Company recognizes the transfers on the date of the event of change in circumstances that caused the transfers.

(5) Valuation techniques and inputs used in measuring financial assets and financial liabilities categorized within Level 2

- Derivative assets and derivative liabilities Derivative assets and derivative liabilities consist of currency swaps and interest rate swaps. Fair value of a currency swap is measured using reporting period end’s forward exchange rate whose term is the same as residual period to maturity of the currency swap. In case that the forward exchange rate whose term is matched to the residual period to maturity is not disclosed in the market, the forward exchange rate is assumed by interpolating using announced forward exchange rates by terms. Discount rate used in measuring fair value of a currency swap is a yield curve deducted by announced interest rate in the market. Discount rate and forward interest rate used in measuring fair value of an interest rate swap is determined based on a yield curve deducted by announced rates in the market as of reporting period end. The fair value of an interest rate swap is measured by discounting future cash flows assumed using the forward interest rate above. The inputs measuring a currency swap and an interest rate swap are deducted by observable forward exchange rates and yield curves in the market as of reporting period end. Therefore, the Company classifies a currency swap and an interest rate swap as Level 2 in fair value hierarchy.

- 31 -

(6) There are no significant changes in business environment or economic environment that affect fair values of financial assets and financial liabilities held by the Company as of June 30, 2013.

(7) Book value of financial assets and financial liabilities The table below provides book value by category of financial assets and financial liabilities recorded at fair value in the consolidated statements of financial position as of June 30, 2013 and December 31, 2012 (Unit: Won in millions):

June 30, 2013

Financial asset at FVTPL

Loans and receivables

Financial assets

AFS Hedging

derivatives Total Trading

Designated at

FVTPL Financial assets

Cash and bank deposit ￦ - ￦ - ￦ 898,352 ￦ - ￦ - ￦ 898,352

Investment financial assets - - - 1,767 - 1,767

Card assets - - 9,110,762 - - 9,110,762 Other assets - - 172,485 - 15,377 187,862

Total ￦ - ￦ - ￦ 10,181,599 ￦ 1,767 ￦ 15,377 ￦10,198,743

June 30, 2013

Financial liabilities at FVTPL

Amortized cost

Hedging derivatives Total

Trading

Designated at

FVTPL Financial liabilities Borrowings ￦ - ￦ - ￦ 225,000 ￦ - ￦ 225,000 Bonds payable - - 6,324,911 - 6,324,911 Other liabilities - - 1,385,220 3,530 1,388,750

Total ￦ - ￦ - ￦ 7,935,131 ￦ 3,530 ￦ 7,938,661

- 32 -

December 31, 2012

Financial asset at FVTPL

Loans and receivables

Financial assets

AFS Hedging

derivatives Total Trading

Designated at

FVTPL Financial assets

Cash and bank deposit ￦ - ￦ - ￦ 824,576 ￦ - ￦ - ￦ 824,576

Investment financial assets - - - 1,767 - 1,767

Card assets - - 9,707,038 - - 9,707,038 Loans - - - - - - Other assets - - 181,391 - 901 182,292

Total ￦ - ￦ - ￦ 10,713,005 ￦ 1,767 ￦ 901 ￦10,715,673

December 31, 2012

Financial liabilities at FVTPL

Amortized cost

Hedging derivatives Total

Trading

Designated at

FVTPL Financial liabilities Borrowings ￦ - ￦ - ￦ 487,500 ￦ - ￦ 487,500 Bonds payable - - 6,533,176 - 6,533,176 Other liabilities - - 1,464,122 53,555 1,517,677

Total ￦ - ￦ - ￦ 8,484,798 ￦ 53,555 ￦ 8,538,353

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(8) Net profit or loss of financial instruments by categories

Net profit or loss of financial instruments by categories for the six months ended June 30, 2013 and 2012, is as follows (Unit: Won in million):

June 30, 2013

Interest income

Interest expense

Card revenue

Card expenses

(Reversal of)

impairment loss

Valuation gain (loss)

Disposal gain (loss)

Foreign currency

translation gain (loss)

Foreign exchange gain (loss)

Financial assets Loans and receivables ￦10,522 ￦ - ￦ 1,208,213 ￦ 519,711 ￦ - ￦ - ￦ - ￦ 38 ￦ 4,488

Financial assets AFS - - - - 54 - - - -

Hedging derivatives - - - - - - - - -

Financial liabilities

Financial liabilities at amortized cost 156,988 - - - - - (64,059) -

Hedging derivatives - - - - - 64,059 - - -

Total ￦10,522 ￦156,988 ￦1,208,213 ￦ 519,711 ￦ 54 ￦ 64,059 ￦ - ￦ (64,021) ￦ 4,488

June 30, 2012

Interest income

Interest expense

Card revenue

Card expenses

(Reversal of)

impairment loss

Valuation gain (loss)

Disposal gain (loss)

Foreign currency

translation gain (loss)

Foreign exchange gain (loss)

Financial assets Loans and receivables ￦ 10,047 ￦ - ￦ 1,182,844 ￦ 529,562 ￦ - ￦ - ￦ - ￦ 8 ￦ 3,735

Financial assets AFS - - - - 67 - - - -

Hedging derivatives - - - - - 11,768 (799) - 799

Financial liabilities

Financial liabilities at amortized cost 173,241 - - - - - (11,768) -

Hedging derivatives - - - - - - - - -

Total ￦10,047 ￦ 173,241 ￦ 1,182,844 ￦ 529,562 ￦ 67 ￦ 11,768) ￦ (799) ￦ (11,760) ￦ 4,534

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30. NET INTEREST INCOME (EXPENSES):

Net interest expenses for the six months ended June 30, 2013 and 2012, are as follows (Unit: Won in millions):

2013 2012 Three months

ended June 30. Six months

ended June 30. Three months

ended June 30. Six months

ended June 30. Interest income

Cash and bank deposit ￦ 5,125 ￦ 9,492 ￦ 4,227 ￦ 8,882

Others 556 1,030 524 1,165 Total 5,681 10,522 4,751 10,047

Interest expenses Borrowings 5,547 10,375 6,392 13,520 Bonds payable 71,975 146,515 80,132 159,611 Others 48 98 55 110

Total 77,570 156,988 86,579 173,241 Net interest

expenses ￦ (71,889) ￦ (146,466) ￦ (81,828) ￦ (163,194) 31. NET COMMISSION INCOME:

Net commission income for the six months ended June 30, 2013 and 2012, is as follows (Unit: Won in millions):

2013 2012 Three months

ended June 30. Six months

ended June 30. Three months

ended June 30. Six months

ended June 30. Commission income

Card assets ￦ 386,861 ￦ 758,071 ￦ 379,088 ￦ 747,425 Total 386,861 758,071 379,088 747,425

Commission expense Service fee 147,237 289,441 142,151 273,115 Financial payment fee 3,026 5,924 3,366 6,539 A new credit sale handling

fee 45,885 86,469 32,012 61,180 Merchants copayment fee 15 30 22 44 Overseas payment fee 10,599 25,906 9,585 18,394 Other 12,005 24,751 7,585 15,733

Total 218,767 432,521 194,721 375,005 Net commission income ￦ 168,094 ￦ 325,550 ￦ 184,367 ￦ 372,420

- 35 -

32. OTHER OPERATING REVENUE AND OTHER OPERATING EXPENSES:

Other operating income and other operating expenses for the six months ended June 30, 2013 and 2012, are as follows (Unit: Won in millions):

2013 2012 Three months

ended June 30. Six months

ended June 30. Three months

ended June 30. Six months

ended June 30. Other operating revenue Foreign exchange gain ￦ 3,033 ￦ 6,016 ￦ 2,472 ￦ 5,440 Foreign currency

translation gain -

-

(7,044)

13

Gain on valuation of derivatives

30,644

64,059

6,608

11,768

Others 8,290 17,998 16,058 23,575 Total ￦ 41,967 ￦ 88,073 ￦ 18,094 ￦ 40,796

2013 2012 Three months

ended June 30. Six months

ended June 30. Three months

ended June 30. Six months

ended June 30. Other operating expenses Foreign exchange loss ￦ 802 ￦ 1,528 ￦ 519 ￦ 906 Foreign currency

translation loss 30,643

64,021

6,522

11,773

Loss on derivative transactions

-

-

24

799

Loss on valuation of derivatives

-

-

(7,053)

-

Others 20,950 41,760 7,337 16,190 Total ￦ 52,395 ￦ 170,309 ￦ 7,349 ￦ 29,668