Form 6-K

 

 

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

Form 6-K

 

 

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16

UNDER THE SECURITIES EXCHANGE ACT OF 1934

For the month of March 2019

 

 

Woori Financial Group Inc.

(Translation of registrant’s name into English)

 

 

51, Sogong-ro, Jung-gu, Seoul, 04632, Korea

(Address of principal executive office)

 

 

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

Form 20-F  ☒            Form 40-F  ☐

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):  ☐

Note: Regulation S-T Rule 101(b)(1) only permits the submission in paper of a Form 6-K if submitted solely to provide an attached annual report to security holders.

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):  ☐

Note: Regulation S-T Rule 101(b)(7) only permits the submission in paper of a Form 6-K if submission to furnish a report or other document that the registration foreign private issuer must furnish and make public under the laws of the jurisdiction in which the registrant is incorporated, domiciled or legally organized (the registrant’s “home country”), or under the rules of the home country exchange on which the registrant’s securities are traded, as long as the report or other document is not a press release, is not required to be and has not been distributed to the registrant’s security holders, and if discussing a material event, has already been the subject of a Form 6-K submission or other Commission filing on EDGAR.

 

 

 


LOGO

51, Sogong-ro,

Jung-gu, Seoul, 04632 Korea

March 7, 2019

To Shareholders:

Convocation Notice of the Annual General Meeting of Shareholders

Notice is hereby given that an Annual General Meeting of Shareholders of Woori Bank (the “Company”) will be held as described hereunder and your attendance is cordially requested.

 

Very truly yours,

Tae Seung Sohn

President and CEO

Woori Bank

51, Sogong-ro, Jung-gu

Seoul 04632, Korea

Description

 

1. Date and Time

   March 27, 2019; 10 A.M. (Local time)
2. Venue   

Synergy Hall, 5th floor, Woori Bank,

51, Sogong-ro, Jung-gu, Seoul, Korea

3. Agenda   

1.  Approval of financial statements for the fiscal year 2018

 

2.  Appointment of standing director

 

- Candidate for standing director : Jung-Sik Oh

 

3.  Appointment of audit committee member who is not an outside director

 

- Candidate for audit committee member who is not an outside director : Jung-Sik Oh

 

4.  Approval of the maximum limit on directors’ compensation

Reference Document for the Exercise of Voting Rights

 

1.

Approval of financial statements for the fiscal year 2018

Please refer to Appendix A.


The consolidated and separate financial statements in Appendix A have not yet been audited and are subject to change. For the audited financial statements, please refer to the Audit Reports to be furnished to the U.S. Securities and Exchange Commission as an exhibit to the Form 6-K.

 

2.

Appointment of standing director

 

Name

(Date of Birth)

  

Experience

  

Nominated by

  

Relationship
with the
Majority
Shareholder

  

Transactions
with the
Company
within the past
three years

  

Term

Jung-Sik Oh

(Jul. 17, 1956)

  

– Current) Standing Director, Woori Bank

- CEO, KB Capital

- Executive Vice President, Head of Commercial Business, Citibank

   Officer Candidate Recommendation Committee    None    None    Note 1)

 

*

Note 1)

From the time of appointment at the AGM held in Mar. 2019 to the end of the AGM held in Mar. 2020

 

3.

Appointment of audit committee member who is not an outside director

 

Name

(Date of Birth)

  

Experience

  

Nominated by

  

Relationship
with the
Majority
Shareholder

  

Transactions
with the
Company
within the past
three years

  

Term

Jung-Sik Oh

(Jul. 17, 1956)

  

– Current) Standing Director, Woori Bank

- CEO, KB Capital

- Executive Vice President, Head of Commercial Business, Citibank

   Officer Candidate Recommendation Committee    None    None    Note 1)

 

*

Note 1)

From the time of appointment at the AGM held in Mar. 2019 to the end of the AGM held in Mar. 2020

 

4.

Approval of directors’ compensation limit

 

Item

  

2018

  

2019

Number of Directors

(Number of Outside Directors)

   8 (5)    8 (5)
Compensation Limit    3.2 billion won    3.2 billion won

 

*

Allocation within the total compensation limit delegated to the board of directors (Board Compensation Committee).


Appendix A. Financial Statements for FY2018

For further information, please refer to the Audit Reports to be furnished to the U.S. Securities and Exchange Commission as an exhibit to the Form 6-K. The Audit Reports will be available on the U.S. Securities and Exchange Commission website at www.sec.gov.

WOORI BANK AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

AS OF DECEMBER 31, 2018 AND 2017

 

     December 31,
2018 (*)
     December 31,
2017 (*)
 
     (Korean Won in millions)  
ASSETS      

Cash and cash equivalents (Note 6)

     6,712,623        6,908,286  

Financial assets at fair value through profit or loss (“FVTPL”) (K-IFRS 1109) (Notes 4, 7, 11, 12, 18 and 26)

     6,126,183        —    

Financial assets at FVTPL (K-IFRS 1039) (Notes 4, 7, 11, 12, 18 and 26)

     —          5,843,077  

Financial assets at financial assets at fair value through other comprehensive income(“FVTOCI”) (Notes 4, 8, 11, 12, and 18)

     18,063,423        —    

Available-for-sale (“AFS”) financial assets (Notes 4,8,11,12 and 18)

     —          15,352,950  

Securities at amortized cost (Notes 4, 9, 11, 12 and 18)

     22,932,559        —    

Held to maturity (“HTM”) financial assets (Notes 4, 9, 11, 12 and 18)

     —          16,749,296  

Loans and other financial assets at amortized cost (Notes 4, 10, 11, 12, 18 and 45)

     282,448,315        —    

Loans and receivables (Notes 4,10,11,12,18 and 45)

     —          267,106,204  

Investments in joint ventures and associates (Note 13)

     361,427        417,051  

Investment properties (Note 14)

     378,069        371,301  

Premises and equipment (Notes 15 and 18)

     2,441,141        2,477,545  

Intangible assets and goodwill (Note 16)

     587,255        518,599  

Assets held for sale (Note 17)

     93,502        48,624  

Current tax assets (Note 42)

     20,488        4,722  

Deferred tax assets (Note 42)

     49,863        280,130  

Derivative assets (Designated for hedging) (Notes 4,11,12 and 26)

     35,503        59,272  

Other assets (Notes 19 and 45)

     196,832        158,404  
  

 

 

    

 

 

 

Total assets

     340,447,183        316,295,461  
  

 

 

    

 

 

 
LIABILITIES      

Financial liabilities at FVTPL (K-IFRS 1109) (Notes 4, 11, 12, 20 and 26)

     2,282,686        —    

Financial liabilities at FVTPL (K-IFRS 1039) (Notes 4, 11, 12, 20 and 26)

     —          3,427,909  

Deposits due to customers (Notes 4,11,21 and 45)

     248,690,939        234,695,084  

Borrowings (Notes 4, 11, 12 and 22)

     16,202,986        14,784,706  

Debentures (Notes 4, 11 and 22)

     28,725,862        27,869,651  

Provisions (Notes 23, 44 and 45)

     389,862        410,470  

Net defined benefit liability (Note 24)

     138,682        43,264  

Liabilities of a disposal group classified as held for sale (Note 17)

     72,660        —    

Current tax liabilities (Note 42)

     156,559        232,600  

Deferred tax liabilities (Note 42)

     18,156        22,681  

Derivative liabilities (Designated for hedging) (Notes 4,11,12 and 26)

     51,409        67,754  

Other financial liabilities (Notes 4,11,12, 25 and 45)

     21,426,064        13,892,461  

Other liabilities (Notes 25 and 45)

     338,274        283,981  
  

 

 

    

 

 

 

Total liabilities

     318,494,139        295,730,561  
  

 

 

    

 

 

 

(Continued)


WOORI BANK AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

AS OF DECEMBER 31, 2018 AND 2017 (CONTINUED)

 

     December 31,
2018 (*)
    December 31,
2017 (*)
 
     (Korean Won in millions)  
EQUITY     

Owners’ equity:

     21,739,931       20,365,892  

Capital stock (Note 28)

     3,381,392       3,381,392  

Hybrid securities (Note 29)

     3,161,963       3,017,888  

Capital surplus (Note 28)

     285,889       285,880  

Other equity (Note 30)

     (2,213,970     (1,939,274

Retained earnings (Notes 31 and 32)

    

(Regulatory reserve for credit loss as of December 31, 2018 and 2017 is 2,578,457 million Won and 2,438,191 million Won, respectively

    

Regulatory reserve for credit loss to be reversed (reserved) as of December 31, 2018 and 2017 is 222,211 million Won and (-)140,266 million Won, respectively

    

Planned provision reversed(reserved) of regulatory reserve for credit loss as of December 31, 2018 and 2017 is 222,211 million Won and (-)140,266 million Won, respectively

     17,124,657       15,620,006  

Non-controlling interests

     213,113       199,008  
  

 

 

   

 

 

 

Total equity

     21,953,044       20,564,900  
  

 

 

   

 

 

 

Total liabilities and equity

     340,447,183       316,295,461  
  

 

 

   

 

 

 

 

(*)

The consolidated statements of financial position as of December 31, 2018 was prepared in accordance with K-IFRS 1109; however, the comparative consolidated statements of financial position as of December 31, 2017 was not retrospectively restated in accordance with K-IFRS 1109.


WOORI BANK AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

FOR THE YEARS ENDED DECEMBER 31, 2018 AND 2017

 

     2018(*)     2017(*)  
     (Korean won in millions,
except for per share data)
 

Interest income

     9,684,499       8,550,687  

Financial assets at FVTPL (K-IFRS 1109)

     54,243       —    

Financial assets at FVTOCI

     280,371       —    

Financial assets at amortized cost

     9,349,885       —    

Financial assets at FVTPL (K-IFRS 1039)

     —         53,348  

AFS financial assets

     —         239,030  

HTM financial assets

     —         307,965  

Loans and receivables

     —         7,950,344  

Interest expense

     (4,033,548     (3,330,037
  

 

 

   

 

 

 

Net interest income (Notes 34 and 45)

     5,650,951       5,220,650  

Fees and commissions income

     1,680,764       2,069,198  

Fees and commissions expense

     (610,790     (998,732
  

 

 

   

 

 

 

Net fees and commissions income (Notes 35 and 45)

     1,069,974       1,070,466  

Dividend income (Notes 36 and 45)

     90,552       124,992  

Net gain on financial instruments at FVTPL (K-IFRS 1109) (Notes 11, 37 and 45)

     214,443       —    

Net loss on financial instruments at FVTPL (K-IFRS 1039) (Notes 11, 37 and 45)

     —         (104,827

Net gain on financial assets at FVTOCI (Notes 11 and 38)

     2,047       —    

Net gain on AFS financial assets (Notes 11 and 38)

     —         192,708  

Net gain on disposals of financial assets at amortized cost

     79,532       —    

Net gain on disposals of securities at amortized cost

     431       —    

Net gain on disposals of loans and other financial assets at amortized cost

     79,101       —    

Impairment losses due to credit loss (Notes 39 and 45)

     (329,574     (785,133

General and administrative expenses (Notes 40 and 45)

     (3,624,033     (3,530,801

Other net operating expenses (Notes 40 and 45)

     (394,591     (31,313
  

 

 

   

 

 

 

Operating income

     2,759,301       2,156,742  

Share of gain(loss) on subsidiaries and associates (Note 13)

     3,019       (101,514

Net other non-operating income(expense)

     42,552       (105,722
  

 

 

   

 

 

 

Non-operating income(expense) (Note 41)

     45,571       (207,236

Net income before income tax expense

     2,804,872       1,949,506  

Income tax expense (Note 42)

     (753,223     (419,418

(Continued)


WOORI BANK AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

FOR THE YEARS ENDED DECEMBER 31, 2018 AND 2017 (CONTINUED)

 

     2018(*)     2017(*)  
     (Korean won in millions,
except for per share data)
 

Net income

    

(Net income after the provision for regulatory reserve for credit loss for the years ended December 31, 2018 and 2017, is 2,010,774 million won and 1,389,822 million won, respectively) (Note 32)

     2,051,649       1,530,088  
  

 

 

   

 

 

 

Net loss on valuation of equity securities at FVTOCI

     (30,855     —    

Net gain(loss) on valuation of financial liabilities designated as at FVTPL due to own credit risk

     100       —    

Items out of share of other comprehensive gain of joint ventures and associates that will not be reclassified to profit or loss

     —         (2,993

Remeasurement of the net defined benefit liability

     (71,432     10,497  

Net loss on valuation of assets held for sale

     (13,197     —    
  

 

 

   

 

 

 

Items that will not be reclassified to profit or loss

     (115,384     7,504  

Net gain on valuation of debt securities at FVTOCI

     33,360       —    

Net loss on valuation of AFS financial assets

     —         (84,498

Share of other comprehensive gain of joint ventures and associates

     2,958       3,605  

Net loss on foreign currency translation of foreign operations

     (4,379     (208,329

Net gain (loss) on valuation of cash flow hedge

     (4,646     777  

Net gain (loss) on valuation of assets held for sale

     (4,145     4,145  
  

 

 

   

 

 

 

Items that may be reclassified to profit or loss

     23,148       (284,300

Other comprehensive loss, net of tax

     (92,236     (276,796

Total comprehensive income

     1,959,413       1,253,292  
  

 

 

   

 

 

 

Net income attributable to:

    

Net income attributable to owners

     2,033,182       1,512,148  

Net income attributable to non-controlling interests

     18,467       17,940  

Total comprehensive income attributable to:

    

Comprehensive income attributable to owners

     1,943,885       1,249,057  

Comprehensive income attributable to non-controlling interests

     15,528       4,235  

Basic and diluted earnings per share (In Korean Won) (Note 43)

     2,796       1,999  

 

(*)

The consolidated statements of comprehensive income for the year ended December 31, 2018 was prepared in accordance with K-IFRS 1109; however, the comparative consolidated statements of comprehensive income for the year ended December 31, 2017 was not retrospectively restated in accordance with K-IFRS 1109.


WOORI BANK AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

FOR THE YEARS ENDED DECEMBER 31, 2018 AND 2017

 

     Capital
Stock
     Hybrid
securities
    Capital
surplus
    Other
equity
    Retained
earnings
    Owner’s
equity
    Non-controlling
interests
    Total
equity
 
     (Korean Won in millions)  

January 1, 2017

     3,381,392        3,574,896       286,331       (1,468,025     14,611,566       20,386,160       159,793       20,545,953  

Net income

     —          —         —         —         1,512,148       1,512,148       17,940       1,530,088  

Dividends to common stocks

     —          —         —         —         (336,636     (336,636     (1,554     (338,190

Capital increase of subsidiaries

     —          —         (451     —         —         (451     36,534       36,083  

Net gain (loss) on valuation of available-for-sale financial assets

     —          —         —         (85,051     —         (85,051     553       (84,498

Changes in equity of joint ventures and associates

     —          —         —         612       —         612       —         612  

Loss on foreign currency translation of foreign operations

     —          —         —         (194,347     —         (194,347     (13,982     (208,329

Gain on valuation of cash flow hedge

     —          —         —         777       —         777       —         777  

Remeasurement gain (loss) related to defined benefit plan

     —          —         —         10,773       —         10,773       (276     10,497  

Equity related to assets held for sale

     —          —         —         4,145       —         4,145       —         4,145  

Dividends to hybrid securities

     —          —         —         —         (167,072     (167,072     —         (167,072

Issuance of hybrid securities

     —          559,565       —         —         —         559,565       —         559,565  

Redemption of hybrid securities

     —          (1,116,573     —         (208,158     —         (1,324,731     —         (1,324,731
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

December 31, 2017 (*)

     3,381,392        3,017,888       285,880       (1,939,274     15,620,006       20,365,892       199,008       20,564,900  
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

January 1, 2018

     3,381,392        3,017,888       285,880       (1,939,274     15,620,006       20,365,892       199,008       20,564,900  

Cumulative effect of change in accounting policy (Note 2)

     —          —         —         (392,176     177,091       (215,085     723       (214,362

Adjusted balance, beginning of period

     3,381,392        3,017,888       285,880       (2,331,450     15,797,097       20,150,807       199,731       20,350,538  
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income

     —          —         —         —         2,033,182       2,033,182       18,467       2,051,649  

Dividends to common stocks

     —          —         —         —         (336,636     (336,636     (2,128     (338,764

Capital decrease of subsidiaries

     —          —         9       —         —         9       (18     (9

Net gain on valuation of financial liabilities designated as at FVTPL due to own credit risk

     —          —         —         100       —         100       —         100  

Changes in other comprehensive income due to redemption of financial liabilities designated as at FVTPL

     —          —         —         (4     4       —         —         —    

Net gain (loss) on valuation of financial assets at FVTOCI

     —          —         —         2,733       —         2,733       (228     2,505  

Changes in other comprehensive income due to disposal of equity securities at FVTOCI

     —          —         —         (1,009     1,009       —         —         —    

Share of other comprehensive gain of joint ventures and associates

     —          —         —         2,958       (10,647     (7,689     —         (7,689

Loss on foreign currency translation of foreign operations

     —          —         —         (1,929     —         (1,929     (2,450     (4,379

Loss on valuation of cash flow hedge

     —          —         —         (4,646     —         (4,646     —         (4,646

Remeasurement loss related to defined benefit plan

     —          —         —         (71,171     —         (71,171     (261     (71,432

Net loss on disposal of assets held for sale

     —          —         —         (17,342     —         (17,342     —         (17,342

Dividends to hybrid securities

     —          —         —         —         (151,194     (151,194     —         (151,194

Issuance of hybrid securities

     —          398,707       —         —         —         398,707       —         398,707  

Redemption of hybrid securities

     —          (254,632     —         (368     —         (255,000     —         (255,000

Appropriation of retained earnings

     —          —         —         208,158       (208,158     —         —         —    
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

December 31, 2018 (*)

     3,381,392        3,161,963       285,889       (2,213,970     17,124,657       21,739,931       213,113       21,953,044  
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

(*)

The consolidated statements of changes in equity for the year ended December 31, 2018 was prepared in accordance with K-IFRS 1109; however, the comparative consolidated statements of changes in equity for the year ended December 31, 2017 was not retrospectively restated in accordance with K-IFRS 1109.


WOORI BANK AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE YEARS ENDED DECEMBER 31, 2018 AND 2017

 

     For the years ended December 31  
     2018 (*)     2017 (*)  
     (Korean Won in millions)  

Cash flows from operating activities:

    

Net income

     2,051,649       1,530,088  

Adjustments to net income:

    

Income tax expense

     753,223       419,418  

Interest income

     (9,684,499     (8,550,687

Interest expense

     4,033,548       3,330,037  

Dividend income

     (90,552     (124,992
  

 

 

   

 

 

 
     (4,988,280     (4,926,224
  

 

 

   

 

 

 

Additions of expenses not involving cash outflows:

    

Impairment losses due to credit loss

     329,574       785,133  

Loss on valuation of financial instruments at fair value through profit or loss

     —         15,267  

Loss on financial assets at FVTOCI

     1,053       —    

Share of losses of investments in joint ventures and associates

     22,772       185,020  

Loss on disposal of investments in joint ventures and associates

     2,931       38,713  

Loss on transaction and valuation of derivatives (hedging)

     36,483       109,569  

Loss on hedged items (fair value hedge)

     17,299       —    

Loss on provision

     28,350       107,028  

Retirement benefits

     142,712       142,902  

Depreciation and amortization

     272,550       235,795  

Loss on disposal of premises and equipment, intangible assets and other assets

     1,160       9,994  

Impairment loss on premises and equipment, intangible assets and other assets

     87       390  
  

 

 

   

 

 

 
     854,971       1,629,811  
  

 

 

   

 

 

 

Deductions of income not involving cash inflows:

    

Gain on valuation of financial assets at FVTPL (K-IFRS 1109)

     215,711       —    

Gain on redemption of debentures

     1,597       —    

Gain on financial assets at FVTOCI

     3,100       —    

Gain on AFS financial assets

     —         192,708  

Gain on disposal of securities at amortized cost

     431       —    

Gain on valuation of investments in joint ventures and associates

     25,791       83,506  

Gain on disposal of investments in joint ventures and associates

     50,511       39,932  

Gain on transaction and valuation of derivatives (Designated for hedging)

     35,810       122  

Gain on hedged items (fair value hedge)

     42,797       53,532  

Reversal on provisions

     2,014       2,567  

Gain on disposal of premises and equipment, intangible assets and other assets

     30,278       5,028  

Reversal of impairment loss on premises and equipment, intangible assets and other assets

     761       666  
  

 

 

   

 

 

 
     408,801       378,061  
  

 

 

   

 

 

 

Changes in operating assets and liabilities:

    

Financial assets at FVTPL (K-IFRS 1109)

     670,872       —    

Financial instruments at fair value through profit or loss (K-IFRS 1039)

     —         (583,068

Loans and other financial assets at amortized cost

     (15,754,102     —    

Loans and receivables

     —         (9,647,563

Other assets

     32,328       35,953  

Deposits due to customers

     13,995,747       13,634,873  

Provisions

     (11,920     (122,711

Net defined benefit liability

     (135,313     (46,789

Other financial liabilities

     7,411,753       (7,966,786

Other liabilities

     89,399       (27,550
  

 

 

   

 

 

 
     6,298,764       (4,723,641
  

 

 

   

 

 

 

Cash received from (paid for) operating activities:

    

Interest income received

     9,617,307       8,570,715  

Interest expense paid

     (3,847,411     (3,404,608

Dividends received

     90,651       127,343  

Income tax paid

     (544,058     (404,428
  

 

 

   

 

 

 
     5,316,489       4,889,022  
  

 

 

   

 

 

 

Net cash provided by(used in) operating activities

     9,124,792       (1,979,005
  

 

 

   

 

 

 

(Continued)


WOORI BANK AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE YEARS ENDED DECEMBER 31, 2018 AND 2017 (CONTINUED)

 

     For the years ended December 31  
     2018 (*)     2017 (*)  
     (Korean Won in millions)  

Cash flows from investing activities:

    

Cash in-flows from investing activities:

    

Disposal of financial assets at FVTPL (K-IFRS 1109)

     11,919,335       —    

Disposal of financial assets at FVTOCI

     9,146,307       —    

Disposal of AFS financial assets

     —         24,912,752  

Redemption of securities at amortized cost

     9,426,757    

Redemption of HTM financial assets

     —         8,587,092  

Disposal of investments in joint ventures and associates

     57,300       70,180  

Disposal of subsidiaries

     —         203  

Disposal of investment properties

     3,512       418  

Disposal of premises and equipment

     5,545       7,428  

Disposal of intangible assets

     9,199       1,188  

Disposal of assets held for sale

     74,482       24,808  
  

 

 

   

 

 

 
     30,642,437       33,604,069  
  

 

 

   

 

 

 

Cash out-flows from investing activities:

    

Net cash in-flows of business combination

     134,967       —    

Acquisition of financial assets at FVTPL (K-IFRS 1109)

     12,322,160       —    

Acquisition of financial assets at FVTOCI

     13,275,429       —    

Acquisition of AFS financial assets

     —         19,674,346  

Acquisition of securities at amortized cost

     15,622,847       —    

Acquisition of HTM financial assets

     —         11,521,065  

Acquisition of investments in joint ventures and associates

     48,272       143,161  

Acquisition of investment properties

     15,195       9,872  

Acquisition of premises and equipment

     118,668       162,245  

Acquisition of intangible assets

     176,067       195,929  

Cash out-flow related to derivatives designated for hedging

     —         13,742  
  

 

 

   

 

 

 
     41,713,605       31,720,360  
  

 

 

   

 

 

 

Net cash provided by(used in) investing activities

     (11,071,168     1,883,709  
  

 

 

   

 

 

 

Cash flows from financing activities:

    

Cash in-flows from financing activities:

    

Increase in borrowings

     9,606,126       9,057,999  

Issuance of debentures

     21,505,849       18,438,221  

Issuance of hybrid securities

     398,707       559,565  

Capital increase of subsidiaries

     —         35,841  
  

 

 

   

 

 

 
     31,510,682       28,091,626  
  

 

 

   

 

 

 

Cash out-flows from financing activities:

    

Repayment of borrowings

     8,349,005       12,692,883  

Repayment of debentures

     20,903,518       13,620,520  

Payment of dividends to common stocks

     336,636       336,636  

Dividends paid on hybrid securities

     147,625       177,730  

Redemption of hybrid securities

     255,000       1,323,400  

Dividends paid on non-controlling interests

     2,128       1,554  
  

 

 

   

 

 

 
     29,993,912       28,152,723  
  

 

 

   

 

 

 

Net cash provided by(used in) financing activities

     1,516,770       (61,097
  

 

 

   

 

 

 

Net decrease in cash and cash equivalents

     (429,606     (156,393

Cash and cash equivalents, beginning of the period

     6,908,286       7,591,324  

Effects of exchange rate changes on cash and cash equivalents

     233,943       (526,645
  

 

 

   

 

 

 

Cash and cash equivalents, end of the period (Note 6)

     6,712,623       6,908,286  
  

 

 

   

 

 

 

 

(*)

The consolidated statements of cash flows for the year ended December 31, 2018 was prepared in accordance with K-IFRS 1109; however, the comparative consolidated statements of cash flows for the year ended December 31, 2017 was not retrospectively restated to apply K-IFRS 1109.


WOORI BANK

SEPARATE STATEMENTS OF FINANCIAL POSITION

AS OF DECEMBER 31, 2018 AND 2017

 

     December 31,
2018(*)
     December 31,
2017(*)
 
     (Korean Won in millions)  
ASSETS   

Cash and cash equivalents (Notes 6 and 45)

     5,723,801        5,328,960  

Financial assets at fair value through profit or loss (“FVTPL”) (K-IFRS 1109) (Notes 4, 7, 11, 12, 18, 26 and 45)

     3,877,858        —    

Financial assets at FVTPL (K-IFRS 1039) (Notes 4, 7, 11, 12, 18, 26 and 45)

     —          4,133,724  

Financial assets at fair value through other comprehensive income (“FVTOCI”) (Notes 4, 8, 11, 12, and 18)

     17,040,674        —    

Available for sale (“AFS”) financial assets (Notes 4, 8, 11, 12 and 18)

     —          14,186,704  

Securities at amortized cost (Notes 4, 9, 11, 12 and 18)

     22,802,050        —    

Held to maturity (“HTM”) financial assets (Notes 4, 9, 11, 12 and 18)

     —          16,638,727  

Loans and other financial assets at amortized cost (Notes 4, 10, 11, 12, 18 and 45)

     260,350,949        —    

Loans and receivables (Notes 4, 10, 11, 12, 18 and 45)

     —          248,810,624  

Investments in subsidiaries and associates (Note 13)

     4,193,775        4,148,795  

Investment properties (Note 14)

     367,117        350,235  

Premises and equipment (Note 15)

     2,350,342        2,374,590  

Intangible assets (Note 16)

     353,167        303,325  

Assets held for sale (Note 17)

     143,288        46,183  

Deferred tax assets (Note 42)

     7,360        238,543  

Derivative assets (Held for hedging) (Notes 4, 11, 12 and 26)

     35,503        59,272  

Other assets (Notes 19 and 45)

     149,995        117,889  
  

 

 

    

 

 

 

Total assets

     317,392,879        296,737,571  
  

 

 

    

 

 

 
LIABILITIES      

Financial liabilities at FVTPL (K-IFRS 1109) (Notes 4, 11 12, 20, 26 and 45)

     2,279,373        —    

Financial liabilities at FVTPL (K-IFRS 1039)

(Notes 4, 11, 12, 20, 26 and 45)

     —          3,416,978  

Deposits due to customers (Notes 4, 11, 21 and 45)

     237,426,765        224,384,156  

Borrowings (Notes 4, 11, 12 and 22)

     14,081,092        13,662,984  

Debentures (Notes 4, 11 and 22)

     21,666,331        21,707,466  

Provisions (Notes 23, 44 and 45)

     283,501        368,027  

Net defined benefit liability (Note 24)

     136,163        14,284  

Liabilities of a disposal group classified as held for sale

     72,361        —    

Current tax liabilities (Note 42)

     110,127        212,376  

Derivative liabilities (Held for hedging) (Notes 4, 11, 12 and 26)

     17,654        12,103  

Other financial liabilities (Notes 4, 11, 12, 25 and 45)

     20,097,011        13,029,421  

Other liabilities (Notes 25 and 45)

     173,501        135,686  
  

 

 

    

 

 

 

Total liabilities

     296,343,879        276,943,481  
  

 

 

    

 

 

 

(Continued)

     


WOORI BANK

SEPARATE STATEMENTS OF FINANCIAL POSITION

AS OF DECEMBER 31, 2018 AND 2017 (CONTINUED)

 

     December 31,
2018(*)
    December 31,
2017(*)
 
     (Korean Won in millions)  
EQUITY     

Capital stock (Note 28)

     3,381,392       3,381,392  

Hybrid securities (Note 29)

     3,161,963       3,017,888  

Capital surplus (Note 28)

     269,533       269,533  

Other equity (Note 30)

     (386,840     (135,282

Retained earnings (Notes 31 and 32)

    

(Regulatory reserve for credit loss as of December 31, 2018 and 2017 is 2,091,721 million Won and 2,017,342 million Won, respectively

    

Regulatory reserve for credit loss to be reversed (reserved) as of December 31, 2018 and 2017 is 202,905 million Won and (-) 74,379 million Won, respectively

    

Planned provision reversed (reserved) of regulatory reserve for credit loss as of December 31, 2018 and 2017 is 202,905 million Won and (-) 74,379 million Won, respectively)

     14,622,952       13,260,559  
  

 

 

   

 

 

 

Total equity

     21,049,000       19,794,090  
  

 

 

   

 

 

 

Total liabilities and equity

     317,392,879       296,737,571  
  

 

 

   

 

 

 

 

(*)

The separate statement of financial position as of December 31, 2018 was prepared in accordance with K-IFRS 1109; however, the comparative separate statement of financial position as of December 31, 2017 was not retrospectively restated in accordance with K-IFRS 1109.


WOORI BANK

SEPARATE STATEMENTS OF COMPREHENSIVE INCOME

FOR THE YEARS ENDED DECEMBER 31, 2018 AND 2017

 

     2018(*)     2017(*)  
     (Korean won in millions,
except for per share data)
 

Interest income

     8,331,967       7,385,721  

Financial assets at FVTPL (K-IFRS 1109)

     6,047    

Financial assets at FVTOCI

     256,995    

Financial assets at amortized cost

     8,068,925    

Financial assets at FVTPL (K-IFRS 1039)

       17,735  

AFS financial assets

       205,594  

HTM financial assets

       303,348  

Loans and receivables

       6,855,044  

Interest expense

     (3,604,249     (2,995,118
  

 

 

   

 

 

 

Net interest income (Notes 34 and 45)

     4,727,718       4,390,603  

Fees and commissions income

     1,151,201       1,072,838  

Fees and commissions expense

     (148,554     (141,817
  

 

 

   

 

 

 

Net fees and commissions income (Notes 35 and 45)

     1,002,647       931,021  

Dividend income (Notes 36 and 45)

     75,986       125,599  

Net gain on financial instruments at FVTPL (K-IFRS 1109) (Notes 11, 37 and 45)

     204,649       —    

Net loss on financial instruments at FVTPL (K-IFRS 1039) (Notes 11, 37 and 45)

     —         (96,983

Net gain on financial assets at FVTOCI (K-IFRS 1109) (Notes 11 and 38)

     1,333       —    

Net gain on AFS financial assets (Notes 11 and 38)

     —         135,003  

Net gain on financial assets at amortized cost

     44,166       —    

Net gain on disposals of securities at amortized cost

     431       —    

Net gain on disposals of loans and other financial assets at amortized cost

     43,735       —    

Impairment losses due to credit loss (Notes 39 and 45)

     (58,823     (553,204

General and administrative expenses (Notes 40 and 45)

     (3,189,336     (3,128,725

Other net operating expenses (Notes 40 and 45)

     (392,649     (12,756
  

 

 

   

 

 

 

Operating income

     2,415,691       1,790,558  

Share of losses on subsidiaries and associates (Note 13)

     (241     (133,948

Net other non-operating income(expense)

     70,181       (36,388
  

 

 

   

 

 

 

Non-operating income(expense) (Note 41)

     69,940       (170,336

Net income before income tax expense

     2,485,631       1,620,222  

Income tax expense (Note 42)

     (674,727     (344,110


WOORI BANK

SEPARATE STATEMENTS OF COMPREHENSIVE INCOME

FOR THE YEARS ENDED DECEMBER 31, 2018 AND 2017

 

     2018(*)     2017(*)  
     (Korean won in millions,
except for per share data)
 

Net income

    

(Net income after the provision for regulatory reserve for credit loss for the years ended December 31, 2018 and 2017, is 1,819,532 million won and 1,201,733 million won, respectively) (Note 32)

     1,810,904       1,276,112  
  

 

 

   

 

 

 

Net loss on valuation of equity securities at FVTOCI

     (29,290     —    

Net gain on valuation of financial liabilities designated as at FVTPL due to own credit risk

     100       —    

Remeasurement of the net defined benefit liability

     (79,639     16,566  

Items that will not be reclassified to profit or loss

     (108,829     16,566  

Net gain on valuation of debt securities at FVTOCI

     36,085       —    

Net loss on valuation of AFS financial assets

     —         (48,139

Net gain (loss) on foreign currencies translation of foreign operations

     7,882       (34,093

Items that may be reclassified to profit or loss

     43,967       (82,232

Other comprehensive loss, net of tax

     (64,682     (65,666

Total comprehensive income

     1,746,042       1,210,446  

Net income per share (Note 43)

    

Basic and diluted earnings per common share (in Korean Won)

     2,466       1,648  

 

(*)

The separate statement of comprehensive income for year ended December 31, 2018 was prepared in accordance with K-IFRS 1109; however, the comparative separate statement of comprehensive income for the year ended December 31, 2017 was not retrospectively restated in accordance with K-IFRS 1109


WOORI BANK

SEPARATE STATEMENTS OF CHANGES IN EQUITY

FOR THE YEARS ENDED DECEMBER 31, 2018 AND 2017

 

     Capital
stock
     Hybrid
securities
    Capital
surplus
     Other
equity
    Retained
earnings
    Total  
     (Korean Won in millions)  

January 1, 2017

     3,381,392        3,574,896       269,533        138,542       12,488,155       19,852,518  

Net income

     —          —         —          —         1,276,112       1,276,112  

Dividends on common stocks

     —          —         —          —         (336,636     (336,636

Loss on valuation of available-for-sale financial assets

     —          —         —          (48,139     —         (48,139

Loss on foreign currency translation of foreign operations

     —          —         —          (34,093     —         (34,093

Remeasurement gain related to defined benefit plan

     —          —         —          16,566       —         16,566  

Dividends to hybrid securities

     —          —         —          —         (167,072     (167,072

Issuance of hybrid securities

     —          559,565       —          —         —         559,565  

Redemption of hybrid securities

     —          (1,116,573     —          (208,158     —         (1,324,731
  

 

 

    

 

 

   

 

 

    

 

 

   

 

 

   

 

 

 

December 31, 2017(*)

     3,381,392        3,017,888       269,533        (135,282     13,260,559       19,794,090  
  

 

 

    

 

 

   

 

 

    

 

 

   

 

 

   

 

 

 

January 1, 2018

     3,381,392        3,017,888       269,533        (135,282     13,260,559       19,794,090  

Cumulative effect of change in accounting policy (Note 2)

             (393,473     246,464       (147,009
  

 

 

    

 

 

   

 

 

    

 

 

   

 

 

   

 

 

 

Adjusted balance, beginning of period

     3,381,392        3,017,888       269,533        (528,755     13,507,023       19,647,081  

Net income

     —          —         —          —         1,810,904       1,810,904  

Dividends on common stocks

     —          —         —          —         (336,636     (336,636

Net gain on valuation of financial liabilities designated as at FVTPL due to own credit risk

     —          —         —          100       —         100  

Changes in other comprehensive income due to redemption of financial liabilities designated as at FVTPL

     —          —         —          (4     4       —    

Net gain on valuation of financial assets at FVTOCI

     —          —         —          6,795       —         6,795  

Changes in other comprehensive income due to disposal of equity securities at FVTOCI

     —          —            (1,009     1,009       —    

Gain on foreign currency translation of foreign operations

     —          —         —          7,882       —         7,882  

Remeasurement loss related to defined benefit plan

     —          —         —          (79,639     —         (79,639

Appropriation of retained earnings

     —          —         —          208,158       (208,158     —    

Dividends to hybrid securities

     —          —         —          —         (151,194     (151,194

Issuance of hybrid securities

     —          398,707       —          —         —         398,707  

Redemption of hybrid securities

     —          (254,632     —          (368     —         (255,000
  

 

 

    

 

 

   

 

 

    

 

 

   

 

 

   

 

 

 

December 31, 2018(*)

     3,381,392        3,161,963       269,533        (386,840     14,622,952       21,049,000  
  

 

 

    

 

 

   

 

 

    

 

 

   

 

 

   

 

 

 

 

(*)

The separate statements of changes in equity for the year ended December 31, 2018 was prepared in accordance with K-IFRS 1109; however, the comparative separate statements of changes in equity for year ended December 31, 2017 was not retrospectively restated in accordance with K-IFRS 1109.


WOORI BANK

SEPARATE STATEMENTS OF CASH FLOWS

FOR THE YEARS ENDED DECEMBER 31, 2018 AND 2017

 

     2018(*)     2017(*)  
     (Korean Won in millions)  

Cash flows from operating activities:

    

Net income

     1,810,904       1,276,112  

Adjustment to net income:

    

Income tax expense

     674,727       344,110  

Interest income

     (8,331,967     (7,385,721

Interest expense

     3,604,249       2,995,118  

Dividend income

     (113,467     (159,603
  

 

 

   

 

 

 
     (4,166,458     (4,206,096
  

 

 

   

 

 

 

Additions of expenses not involving cash outflows:

    

Impairment losses due to credit loss

     58,823       553,204  

Loss on valuation of financial instruments at FVTPL

     —         6,596  

Impairment loss on investments in subsidiaries and associates

     241       133,948  

Loss on transaction and valuation of derivatives (Held for hedging)

     36,488       52,959  

Loss on hedged items (fair value hedge)

     17,299       —    

Loss on provision

     10,823       51,510  

Retirement benefits

     128,447       131,334  

Depreciation and amortization

     217,074       165,095  

Loss on disposal of premises and equipment and other assets

     933       1,714  

Impairment loss on premises and equipment and other assets

     5,933       184  
  

 

 

   

 

 

 
     476,061       1,096,544  
  

 

 

   

 

 

 

Deductions of income not involving cash inflows:

    

Gain on valuation of financial assets at FVTPL (K-IFRS 1109)

     216,135       —    

Gain on financial assets at FVTOCI

     1,333       —    

Gain on AFS financial assets

     —         135,003  

Gain on disposal of securities at amortized cost

     431       —    

Gain on transaction and valuation of derivatives (hedging)

     9,126       —    

Gain on hedged items (fair value hedge)

     42,797       53,532  

Gain on provisions

     1,883       2,357  

Gain on disposal of investment in subsidiaries and associates

     35,409       9,256  

Gain on disposal of premises and equipment and other assets

     25,537       12,950  

Reversal of impairment loss on premises and equipment and other assets

     491       141  
  

 

 

   

 

 

 
     333,142       213,239  
  

 

 

   

 

 

 

(Continued)


WOORI BANK

SEPARATE STATEMENTS OF CASH FLOWS (CONTINUED)

FOR THE YEARS ENDED DECEMBER 31, 2018 AND 2017

 

     2018(*)     2017(*)  
     (Korean Won in millions)  

Changes in operating assets and liabilities:

    

Financial assets at FVTPL (K-IFRS 1109)

     1,232,277       —    

Financial assets at FVTPL (K-IFRS 1039)

     —         (439,949

Loans and other financial assets at amortized cost

     (11,927,559     —    

Loans and receivables

     —         (8,192,223

Other assets

     (23,497     (21,665

Deposits due to customers

     13,042,027       13,005,112  

Provision

     7,781       4,788  

Net defined benefit liability

     (118,735     (34,946

Other financial liabilities

     6,919,137       (7,675,726

Other liabilities

     45,077       (28,404
  

 

 

   

 

 

 
     9,176,508       (3,383,013
  

 

 

   

 

 

 

Cash received from(paid for) operating activities:

    

Interest income received

     8,305,699       7,389,513  

Interest expense paid

     (3,416,210     (3,013,602

Dividend received

     111,426       153,401  

Income tax paid

     (464,286     (343,529
  

 

 

   

 

 

 
     4,536,629       4,185,783  
  

 

 

   

 

 

 

Net cash provided by(used in) operating activities

     11,500,502       (1,243,909
  

 

 

   

 

 

 

Cash flows from investing activities:

    

Cash in-flows from investing activities:

    

Disposal of Financial assets at FVTPL (K-IFRS 1109)

     11,918,394       —    

Disposal of financial assets at FVTOCI

     8,969,290       —    

Disposal of AFS financial assets

     —         23,119,666  

Redemption of securities at amortized cost

     9,400,596       —    

Redemption of HTM financial assets

     —         8,506,982  

Disposal of investments in subsidiaries and associates

     59,771       26,078  

Disposal of premises and equipment

     387       7,238  

Disposal of intangible assets

     2,845       383  

Disposal of assets held for sale

     73,481       21,681  
  

 

 

   

 

 

 
     30,425,124       31,682,028  
  

 

 

   

 

 

 

Cash out-flows from investing activities:

    

Acquisition of financial assets at FVTPL (K-IFRS 1109)

     12,322,160       —    

Acquisition of financial instruments at FVTOCI

     12,945,225       —    

Acquisition of AFS financial assets

     —         19,287,548  

Acquisition of securities at amortized cost

     15,575,213       —    

Acquisition of HTM financial assets

     —         11,477,669  

Acquisition of investments in subsidiaries and associates

     285,140       522,906  

Acquisition of investment properties

     12,957       3,029  

Acquisition of premises and equipment

     89,414       134,271  

Acquisition of intangible assets

     163,877       172,121  

Cash outflow related to derivatives for risk hedge

     —         13,742  
  

 

 

   

 

 

 
     41,393,986       31,611,286  
  

 

 

   

 

 

 

Net cash provided by(used in) investing activities

     (10,968,862     70,742  
  

 

 

   

 

 

 

(Continued)


WOORI BANK

SEPARATE STATEMENTS OF CASH FLOWS (CONTINUED)

FOR THE YEARS ENDED DECEMBER 31, 2018 AND 2017

 

     2018(*)     2017(*)  
     (Korean Won in millions)  

Cash flows from financing activities:

    

Cash in-flows from financing activities:

    

Increase in borrowings

     8,539,312       8,529,590  

Issuance of debentures

     5,248,047       8,669,476  

Issuance of hybrid securities

     398,707       559,565  
  

 

 

   

 

 

 
     14,186,066       17,758,631  
  

 

 

   

 

 

 

Cash out-flows for financing activities:

    

Repayment of borrowings

     8,280,546       10,475,855  

Repayment of debentures

     5,523,518       4,680,520  

Dividends paid

     336,636       336,636  

Redemption of hybrid securities

     255,000       1,323,400  

Dividends paid on hybrid securities

     147,625       177,730  
  

 

 

   

 

 

 
     14,543,325       16,994,141  
  

 

 

   

 

 

 

Net cash provided by(used in) financing activities

     (357,259     764,490  
  

 

 

   

 

 

 

Net increase(decrease) in cash and cash equivalents

     174,381       (408,677

Cash and cash equivalents, beginning of the period

     5,328,960       6,104,029  

Effects of exchange rate changes on cash and cash equivalents

     220,460       (366,392
  

 

 

   

 

 

 

Cash and cash equivalents, end of the period (Note 6)

     5,723,801       5,328,960  
  

 

 

   

 

 

 

 

(*)

The separate statement of cash flows for the year ended December 31, 2018 was prepared in accordance with K-IFRS 1109; however, the comparative separate flows for the year ended December 31, 2017 was not retrospectively restated in accordance with K-IFRS 1109.


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

   

Woori Financial Group Inc.

    (Registrant)

Date: March 8, 2019

   

By: /s/ Kyong-Hoon Park

    (Signature)
    Name:   Kyong-Hoon Park
    Title:   Deputy President