Form 6-K
Table of Contents

 
 
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 UNDER
THE SECURITIES EXCHANGE ACT OF 1934
For the month of November 2011
Woori Finance Holdings Co., Ltd.
(Translation of Registrant’s name into English)
203, Hoehyon-dong, 1-ga, Chung-gu, Seoul, Korea 100-792
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.
Form 20-F þ           Form 40-F o
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): o
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): o
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.
Indicate by check mark whether by furnishing the information contained in this Form, the registrant is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes o           No þ
 
 

 

 

Table of Contents

Index
1. Summary of 2011 3Q Business Report
2. Exhibit 99.1 Woori Finance Holdings Co., Ltd. Review Report for 2011 3Q

 

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Summary of 2011 3Q Business Report
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 Exhibit 99.1
Except where indicated otherwise, financial information contained in this document (including the attached financial statements) have been prepared in accordance with the Korean equivalent of International Financial Reporting Standards (“Korean IFRS”), which differ in certain important respects from generally accepted accounting principles in the United States.
All references to “Woori Finance Holdings,” “we,” “us” or the “Company” are to Woori Finance Holdings Co., Ltd. and, unless the context requires otherwise, its subsidiaries. In addition, all references to “Won” or “KRW” in this document are to the currency of the Republic of Korea.

 

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I.  
Company Overview
1.  
Purpose of the Company
a.  
Scope of Business
Acquisition/ownership of shares in companies that are engaged in financial services or are closely related to financial services, as well as the governance and/or management of such companies.
  (1)  
Corporate Management
  1.  
Setting management targets for and approving business plans of the subsidiaries;
  2.  
Evaluation of the subsidiaries’ management performance and establishment of compensation levels;
  3.  
Formulation of corporate governance structures of the subsidiaries;
  4.  
Inspection of operation and assets of the subsidiaries; and
  5.  
Other activities complementary to the items mentioned in numbers 1 to 4.
  (2)  
Corporate Management Support Activities
  1.  
Funding for the affiliate companies (including direct and indirect subsidiaries, the “Affiliates”);
  2.  
Capital investment in subsidiaries or procurement of funds for the Affiliates; and
  3.  
Activities ancillary to the above items.
b.  
Scope of Business of Subsidiaries
  (1)  
Bank Subsidiaries (Woori Bank, Kwangju Bank and Kyongnam Bank):
  1.  
Banking business as prescribed by the Banking Act;
 
  2.  
Trust business;
 
  3.  
Foreign exchange business; and
 
  4.  
Other authorized businesses.
  (2)  
Woori Investment & Securities: businesses authorized under the Financial Investment Services and Capital Markets Act and related laws and regulations.
  (3)  
Woori Aviva Life Insurance: life insurance and other insurance activities and other business activities permitted under the Insurance Business Act.

 

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  (4)  
Woori Asset Management: asset management business.
 
  (5)  
Woori Financial: consumer finance business.
 
  (6)  
Woori FIS: finance-related IT services.
 
  (7)  
Woori F&I: securitization business.
 
  (8)  
Woori Private Equity: private equity business.
 
  (9)  
Woori Financial Group Savings Bank: consumer savings banking business.
2.  
History of the Company
 
a.  
Company History
  (1)  
Background: Major developments.
     
March 30, 2004
  Appointment of new management
 
    
March 31, 2004
  Woori Card merged into Woori Bank
 
    
June 18, 2004
  Woori Securities becomes a wholly-owned subsidiary
 
    
December 21, 2004
  Capital increase through conversion of CBs (Total capital after conversion: Won 4.0 trillion)
 
    
December 24, 2004
  Acquired LG Investment & Securities and incorporated as a subsidiary
 
    
February 17, 2005
  Capital increase through conversion of CBs (Total capital after conversion: Won 4.0 trillion)
 
    
March 11, 2005
  Capital increase through conversion of CBs (Total capital after conversion: Won 4.0 trillion)
 
    
March 31, 2005
  Woori Securities and LG Investment & Securities merged (the name of the surviving entity, LG Investment & Securities, changed to Woori Investment & Securities)
 
    
May 6, 2005
  LG Investment Trust Management changed from 2nd tier subsidiary to 1st tier subsidiary
 
    
May 31, 2005
  Woori Investment Trust Management and LG Investment Trust Management merged (the name of the surviving entity, LG Investment Trust Management, changed to Woori Asset Management)
 
    
August 3, 2005
  Dissolution of Woori LB Second Asset Securitization Specialty Co., Ltd.
 
    
September 5, 2005
  Woori Asset Management becomes a wholly-owned subsidiary through capital reduction and cancellation
 
    
October 21, 2005
  Woori Private Equity is established and incorporated as a subsidiary

 

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October 27, 2005
  Closure of strategic investment agreement with Lehman Brothers
 
    
February 23, 2006
  Joint venture arrangement between Woori CA Asset Management, a 2nd tier subsidiary, and Japan’s Shinsei Bank (involving a transfer of 49% of Woori F&I’s 100% stake in Woori CA Asset Management to Shinsei Bank)
 
    
April 11, 2006
  Joint venture agreement to transfer 30% of the shares of Woori Asset Management to Credit Suisse Asset Management International Holdings, a wholly owned subsidiary of Credit Suisse.
 
    
May 30, 2006
  Upon the 30% share transfer to Credit Suisse Asset Management International Holdings, Woori Asset Management was renamed Woori Credit Suisse Asset Management.
 
    
March 30, 2007
  Appointment of new management
 
    
September 14, 2007
  Acquired Hanmi Capital as a subsidiary (Hanmi Capital was renamed Woori Financial as of October 26, 2007)
 
    
April 4, 2008
  Acquired LIG Life Insurance as a subsidiary (LIG Life Insurance was renamed Woori Aviva Life Insurance as of April 1, 2008)
 
    
June 27, 2008
  Appointment of new management
 
    
April 29, 2009
  Termination of joint venture with Credit Suisse regarding Woori Credit Suisse Asset Management. Renamed “Woori Asset Management” (May 30, 2009)
 
    
October 28, 2009
  Acquired the remaining 30% equity stake in Woori Credit Suisse Asset Management from Credit Suisse Asset Management International Holding and completed the establishment of Woori Asset Management as our wholly-owned subsidiary
 
    
December 30, 2009
  Dissolution of Woori LB Third Asset Securitization Specialty Co., Ltd.
 
    
March 11, 2010
  MOU with National Bank of Abu Dhabi Group
 
    
March 16, 2011
  Woori Financial Group Savings Bank Co., Ltd. is incorporated as a wholly-owned subsidiary
 
    
October 5, 2011
  Kwangju Bank and Kyongnam Bank become wholly-owned subsidiaries

 

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b.  
Associated Business Group
  (1)  
Overview of Business Group
  1.  
Name of business group: Woori Financial Group
  (2)  
Related companies within the business group
As of September 30, 2011
             
        Controlling    
Type   Name of Company   Company   Notes
Holding Company
  Woori Finance Holdings   Korea Deposit Insurance Corporation   1 company
 
            
1st Tier Subsidiaries
  Woori Bank   Woori Finance Holdings   11 companies
 
  Kwangju Bank        
 
  Kyongnam Bank        
 
  Woori Investment & Securities        
 
  Woori Aviva Life Insurance        
 
  Woori Asset Management        
 
  Woori Financial        
 
  Woori Financial Group Savings Bank        
 
  Woori FIS (formerly Woori Finance Information System)        
 
  Woori F & I        
 
  Woori Private Equity        
 
            
2nd Tier Subsidiaries
  Woori Credit Information   Woori Bank   51 companies
 
  Woori America Bank        
 
  P.T. Bank Woori Indonesia        
 
  Korea BTL Infrastructure Fund        
 
  Woori Global Markets Asia Ltd.        
 
  Woori Bank (China) Limited        
 
  ZAO Woori Bank        
 
  Woori Fund Service        
 
    
 
  Woori AMC   Woori F&I    
 
  Woori F&I Sixth Asset Securitization Specialty Co., Ltd.        
 
  Woori F&I Seventh Asset Securitization Specialty Co., Ltd.        
 
  Woori F&I Eighth Asset Securitization Specialty Co., Ltd.        
 
  Woori SB Tenth Asset Management        
 
  Woori F&I Tenth Asset Securitization Specialty Co., Ltd.        
 
  Woori F&I Eleventh Asset Securitization Specialty Co., Ltd.        
 
  Woori F&I Thirteenth Asset Securitization Specialty Co., Ltd.        
 
  Woori F&I Sixteenth Asset Securitization Specialty Co., Ltd.        
 
  Woori F&I Seventeenth Asset Securitization Specialty Co., Ltd.        
 
  Woori EA Third Asset Securitization Specialty Co., Ltd.        
 
  Woori EA Fourth Asset Securitization Specialty Co., Ltd.        
 
  Woori EA Fifth Asset Securitization Specialty Co., Ltd.        
 
  WR Creditors Co., Ltd.        
 
  Woori EA Eighth Asset Securitization Specialty Co., Ltd.        
 
  Woori F&I Eighteenth Asset Securitization Specialty Co., Ltd.        
 
  WR Investment America LLC        
 
  Woori F&I Nineteenth Asset Securitization Specialty Co., Ltd.        
 
  Woori F&I Twentieth Asset Securitization Specialty Co., Ltd.        
 
  Woori EA Tenth Asset Securitization Specialty Co., Ltd.        
 
  Woori F&I Twenty First Asset Securitization Specialty Co., Ltd.        
 
  Woori F&I Twenty Second Asset Securitization Specialty Co., Ltd.        
 
  Woori EA Twelveth Asset Securitization Specialty Co., Ltd.        

 

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        Controlling    
Type   Name of Company   Company   Notes
 
  Woori Private Equity Fund   Woori Private Equity    
 
  Woori Blackstone Korea Opportunity Private Equity Fund No.1        
 
            
 
  Woori Futures   Woori Investment & Securities    
 
  Woori Investment & Securities International Ltd.        
 
  Woori Investment & Securities (HK) Ltd.        
 
  Woori Investment & Securities America Inc.        
 
  Mars Private Equity Fund No. 1        
 
  Mars Private Equity Fund No.2        
 
  Woori Investment Asia Pte. Ltd.        
 
  Mars Private Equity Fund No.3        
 
  Mars Private Equity Fund No.4        
 
  Woori Absolute Partners PTE, Ltd.        
 
  Woori Absolute Global Opportunity Fund        
 
  Woori Korindo Securities Indonesia        
 
  LG Investment Holdings B.V. GG        
 
  Connacht Capital Market Investment Ltd.        
 
  Woori CBV Securities Corporation        
 
  Woori Absolute Return Investment Strategies        
 
  KoFC Woori Growth Champ 2010 No.3 Private Equity Fund        
 
  Woori Investment Advisory Co., Ltd. (Beijing)        
     
*  
Woori Finance Holdings, Woori Investment & Securities and Woori Financial are listed on the KRX KOSPI Market
 
*  
On May 23, 2007, Woori F&I Fifth Asset Securitization Specialty Co., Ltd. was included as our 2nd tier subsidiary. Woori F&I Co., Ltd. owns 100% of its equity.
 
*  
On September 14, 2007, Hanmi Capital was included as our 1st tier subsidiary to strengthen our non-banking business (Hanmi Capital was renamed Woori Financial as of October 26, 2007).
 
*  
On September 20, 2007, Woori Investment Asia Pte. Ltd. was included as our 2nd tier subsidiary. Woori Investment & Securities owns a 100% stake in Woori Investment Asia Pte. Ltd.
 
*  
On October 26, 2007, Woori Bank (China) Limited was included as our 2nd tier subsidiary. Woori Bank owns a 100% stake in Woori Bank (China) Limited.
 
*  
On November 22, 2007, ZAO Woori Bank was included as our 2nd tier subsidiary. Woori Bank owns a 100% stake in ZAO Woori Bank, excluding one ZAO Woori Bank share which is owned by a related party of Woori Bank in order to comply with Russian regulations on single shareholder limitations.
 
*  
On December 12, 2007, Woori F&I Sixth Asset Securitization Specialty Co., Ltd. and Woori F&I Seventh Asset Securitization Specialty Co., Ltd. were included as our 2nd tier subsidiaries. Woori F&I Co., Ltd. owns a 100% stake in each of these two subsidiaries.
 
*  
On March 18, 2008, Mars Private Equity Fund No. 3, with an expected paid-in-capital of KRW 51 billion, was included as our 2nd tier subsidiary. Woori Investment & Securities, as its general partner, will have contributed 1.96% of the capital of Mars Private Equity Fund No. 3.
 
*  
On April 3, 2008, Woori F&I Eighth Asset Securitization Specialty Co., Ltd. was included as our 2nd tier subsidiary. Woori F&I Co., Ltd. owns 100% of its equity.
 
*  
On April 4, 2008, LIG Life Insurance was included as our 1st tier subsidiary (LIG Life Insurance was renamed Woori Aviva Life Insurance as of April 1, 2008).

 

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*  
On May 14, 2008, Mars Private Equity Fund No. 4, with an expected paid-in-capital of KRW 51 billion, was included as our 2nd tier subsidiary. Woori Investment & Securities, as its general partner, will have contributed 0.99% of the capital.
 
*  
On May 29, 2008, Woori Absolute Partners Pte. Ltd., an investment advisory service company wholly-owned by Woori Investment & Securities and established in Singapore to manage offshore funds, was included as our 2nd tier subsidiary.
 
*  
On June 27, 2008, Woori SB Tenth Asset Securitization Specialty Co., Ltd. was included as our 2nd tier subsidiary. Woori F&I owns a stake of 50% plus one share in the company.
 
*  
On July 21, 2008, Woori Absolute Global Opportunity Fund, an offshore financial company wholly-owned by Woori Investment & Securities, was included as our 2nd tier subsidiary.
 
*  
On September 9, 2008, Woori F&I Ninth Asset Securitization Specialty Co., Ltd. was included as our 2nd tier subsidiary. Woori F&I Co., Ltd. owns 100% of its equity.
 
*  
On March 3, 2009, PT Clemont Securities Indonesia was included as our 2nd tier subsidiary. Woori Investment & Securities owns a 60% stake in PT Clemont Securities Indonesia.
 
*  
On March 12, 2009, Woori F&I Tenth Asset Securitization Specialty Co., Ltd. was included as our 2nd tier subsidiary. Woori F&I Co., Ltd. owns 100% of its equity.
 
*  
On July 24, 2009, Woori F&I Twelfth Asset Securitization Specialty Co., Ltd. was removed as our 2nd tier subsidiary following the sale of Woori F&I’s equity stake in Woori F&I Twelfth Asset Securitization Specialty Co., Ltd.
 
*  
On August 31, 2009, Woori F&I Thirteenth Asset Securitization Specialty Co., Ltd. was included as our 2nd tier subsidiary.
 
*  
On September 28, 2009, Woori CBV Securities Corporation was included as our 2nd tier subsidiary. Woori Investment & Securities owns a 49% stake in Woori CBV Securities Corporation.
 
*  
On October 15, 2009, we acquired an additional 2.41% of common shares of Woori Financial, and our shareholding is currently 52.52%.
 
*  
On October 28, 2009, Woori Asset Management became our wholly-owned subsidiary following our acquisition of Credit Suisse’s 30% interest in Woori Asset Management.
 
*  
High Technology Venture Investment, Global Technology Investment, LG Investment Holdings B.V. GG and Connacht Capital Market Investment, which are offshore finance companies and subsidiaries of Woori Investment & Securities, are currently undergoing liquidation or other change of control-related proceedings. Due to an expansion in the types of entities that are considered 2nd tier subsidiaries of financial holding companies, these entities became our 2nd tier subsidiaries.
 
*  
On December 28, 2009, Woori SB Asset Management changed its name to Woori AMC and became a wholly-owned subsidiary of Woori F&I following the termination of its joint venture with Shinsei Bank.
 
*  
On December 30, 2009, Woori Third Asset Securitization Specialty Co., Ltd. was dissolved and removed from our list of subsidiaries
 
*  
On February 15, 2010, Woori Investment & Securities sold 100% of its investment stake in Woori Absolute Asia Multi Strategy Fund, an offshore financial company that was wholly-owned by Woori Investment & Securities prior to such sale.

 

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*  
On March 8, 2010, Woori F&I Fourteenth Asset Securitization Specialty Co., Ltd. was included as our 2nd tier subsidiary.
 
*  
On May 20, 2010, Woori Absolute Return Investment Strategies, an offshore financial company wholly-owned by Woori Investment & Securities, was included as our 2nd tier subsidiary.
 
*  
On June 10, 2010, Woori F&I Fifteenth Asset Securitization Specialty Co., Ltd. and Woori F&I Sixteenth Asset Securitization Specialty Co., Ltd., which are wholly-owned by Woori F&I, were included as our 2nd tier subsidiaries.
 
*  
On June 18, 2010, Woori EA Third Asset Securitization Specialty Co., Ltd., a 70% owned subsidiary of Woori F&I, was included as our 2nd tier subsidiary.
 
*  
On June 28, 2010, Woori Ea Fourth Asset Securitization Specialty Co., Ltd., a 70% owned subsidiary of Woori F&I, was included as our 2nd tier subsidiary.
 
*  
On June 29, 2010, Woori Ea Fifth Asset Securitization Specialty Co., Ltd., a 70% owned subsidiary of Woori F&I, was included as our 2nd tier subsidiary.
 
*  
On July 9, 2010, Woori F&I Fifteenth Asset Securitization Specialty Co., Ltd. was removed as our 2nd tier subsidiary following the sale of Woori Investment & Securities’ investment stake in Woori F&I Fifteenth Asset Securitization Specialty Co., Ltd.
 
*  
On September 2, 2010, Woori F&I Seventeenth Asset Securitization Specialty Co., Ltd., a 100% owned subsidiary of Woori F&I, was included as our 2nd tier subsidiary.
 
*  
On October 22, 2010, WR Creditor Co., Ltd., a 100% owned subsidiary of Woori F&I, was included as our 2nd tier subsidiary.
 
*  
On November 22, 2010, KoFC Woori Growth Champ 2010 No.3 Private Equity Fund, a 30% owned subsidiary of Woori Investment & Securities, was included as our 2nd tier subsidiary.
 
*  
On November 23, 2010, Woori EA Eighth Asset Securitization Specialty Co., Ltd., a 51% owned subsidiary of Woori F&I, was included as our 2nd tier subsidiary.
 
*  
On November 30, 2010, Woori F&I Ninth Asset Securitization Specialty Co., Ltd. was dissolved and removed from our list of subsidiaries.
 
*  
On December 1, 2010, High Technology Venture Investment and Global Technology Investment was dissolved and removed from our list of subsidiaries.
 
*  
On December 3, 2010, Woori F&I Eighteenth Asset Securitization Specialty Co., Ltd., a 100% owned subsidiary of Woori F&I, was included as our 2nd tier subsidiary.
 
*  
On December 21, 2010, WR Investment America LLC. a 100% owned subsidiary of Woori F&I, was included as our 2nd tier subsidiary.
 
*  
On January 14, 2011, Woori Investment Advisory Co., Ltd. (Beijing), a 100% owned subsidiary of Woori Investment & Securities, was included as our 2nd tier subsidiary.
 
*  
On Febuary 24, 2011, Woori F&I Nineeenth Asset Securitization Specialty Co., Ltd., a 100% owned subsidiary of Woori F&I, was included as our 2nd tier subsidiary.
 
*  
On March 14, 2011, Woori F&I Twentieth Asset Securitization Specialty Co., Ltd., a subsidiary of Woori F&I, was included as our 2nd tier subsidiary. Woori F&I Co., Ltd. owns 60% of the equity of Woori F&I Twentieth Asset Securitization Specialty Co., Ltd.

 

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*  
On March 16, 2011, Woori Financial Group Savings Bank, a 100% owned subsidiary of Woori Finance Holdings, was included as our subsidiary.
 
*  
On March 29, 2011, Woori EA Tenth Asset Securitization Specialty Co., Ltd., a 51% owned subsidiary of Woori F&I, was included as our 2nd tier subsidiary.
 
*  
On May 30, 2011, Woori F&I Fourteenth Asset Securitization Specialty Co., Ltd. was dissolved and removed from our list of subsidiaries.
 
*  
On June 7, 2011, Woori F&I Twenty First Asset Securitization Specialty Co., Ltd. and Woori F&I Twenty Second Asset Securitization Specialty Co., Ltd., each a 100% owned subsidiary of Woori F&I, were included as our 2nd tier subsidiaries.
 
*  
On July 22, 2011, Woori Fund Service Co., Ltd., a 100% owned subsidiary of Woori Bank, was included as our 2nd tier subsidiary.
 
*  
On August 26, 2011, Brim Asian Credit Fund was dissolved and removed from our list of subsidiaries.
 
*  
On September 2, 2011, Woori EA Twelveth Asset Securitization Specialty Co., Ltd., a 70% owned subsidiary of Woori F&I, was included as our 2nd tier subsidiary.
 
*  
On September 28, 2011, Woori F&I Fifth Asset Securitization Specialty Co., Ltd. was dissolved and removed from our list of subsidiaries.
c.  
Consolidated Subsidiaries
             
        Total Assets (2010)  
Name of Company   Business Activities   (unit: in millions of Won)  
Woori Bank
   Banking     224,419,749  
Kwangju Bank
   Banking     16,497,497  
Kyongnam Bank
   Banking     21,830,812  
Woori Investment & Securities
   Securities     17,089,252  
Woori Asset Management
   Investment Trusts     84,418  
Woori Financial
   Other Financial     2,770,293  
Woori FIS (former Woori Finance Information System)
   Financial Information Technology     242,574  
Woori F&I
   Other Financial     1,027,330  
Woori Private Equity
   Other Financial     28,318  
Woori Financial Group Savings Bank
   Banking     —  
TY second Asset Securitization Specialty
   Other Financial     211,220  
Woori Credit Information
   Debt Collection and Credit Rating     29,433  
Woori America Bank
   Banking     1,196,801  
P.T. Bank Woori Indonesia
   Banking     487,557  
Woori Global Markets Asia Ltd.
   Banking     182,730  
Woori Bank (China) Limited
   Banking     2,237,662  
ZAO Woori Bank
   Banking     170,027  
Korea BTL Infrastructure Fund
   Other Financial     340,478  
Woori Fund Service Co., Ltd.
   Other Financial     —  
Kumho Trust 1st Co., Ltd.
   Other Financial     91,750  
Woori IB Global Bond Co., Ltd
   Other Financial     215,220  
Connsus Eighth Co., Ltd.
   Other Financial     9  
Asiana Saigon Co., Ltd.
   Other Financial     59,460  
An-Dong Raja 1st Co., Ltd.
   Other Financial     14,928  
KAMCO Value Recreation 1st Securitization Specialty Co., Ltd
   Other Financial     140,632  
IB Global 1st Inc.
   Other Financial     68,515  

 

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        Total Assets (2010)  
Name of Company   Business Activities   (unit: in millions of Won)  
Real DW Second Co., Ltd.
   Other Financial     120,841  
Hermes STX Co., Ltd.
   Other Financial     30,341  
BWL First Co., LLC
   Other Financial     80,421  
Woori Poongsan Co., Ltd
   Other Financial     —  
Ocean Sand Co., Ltd.
   Other Financial     —  
Heoreum Short-Term 15 th
   Other Financial     57  
G5 Pro Short-Term 13th
   Other Financial     637  
G6 First Class Mid-Term E-20
   Other Financial     1  
G15 First Class Mid-Term C-1
   Other Financial     4  
D First Class Mid-term C-151
   Other Financial     3  
Golden Bridge Sidus FNH Video
   Other Financial     8,263  
Golden Bridge NHN Online Private Equity Investment
   Other Financial     25,015  
Woori CS Ocean Bridge 7 th
   Other Financial     16,178  
Woori Milestone Private Real Estate Fund 1st
   Other Financial     36,491  
Woori Milestone China Real Estate Fund 1st
   Other Financial     227  
Consus Sakhalin Real Estate Investment Trust 1st
   Other Financial     48,706  
Hanwha Smart Private Equity Securities 19th
   Other Financial     50,004  
Woori Partner Plus Private Equity Securities 4th
   Other Financial     497,639  
Woori Partner Plus Private Equity Trust 7th
   Other Financial        
Yuri WB Private Equity Securities Investment Trust 3rd
   Securities     —  
KDB Private Equity Investment Trust WB-2
   Securities     —  
Samsung Plus Private Equity Investment Trust No.13
   Securities     —  
Hanhwa Smart Private Equity Trust No.43
   Securities     —  
Eugene Pride Private Equity Securities Investment Trust [21st] (Bond)
   Securities     —  
Meritz Prime Private Equity Trust No.42(Bond)
   Other Financial     —  
Woori Partner Plus Private Equity Securities 8th
   Other Financial     —  
Woori Partner Plus Equity Securities 9th
   Other Financial     —  
Euro Quanto Second Inc.
   Other Financial     54,210  
Hybrid 1st Specialty Inc.
   Other Financial     299,638  
KAMCO Value Recreation 2nd Securitization Specialty Co., Ltd.
   Other Financial     29,699  
Heungkuk Hiclass 9th
   Other Financial     11,196  
Eugene Best Plan Private Equity Securities No.16
   Other Financial     9,955  
Consus 6th Co., LLC
   Other Financial     9  
KTB Market Alpha Private Equity Securities Investment Trust 30-1st
   Other Financial     10,958  
GS Gold Scope Private Equity Securities Investment Trust 2nd
   Other Financial     9,615  
Hana UBS Power Private Equity Securities Investment Trust 12th
   Other Financial     10,574  
Samsung Korea Focus Private Equity Investment Trust 1 st
   Other Financial     10,433  
Shinhan BNP Corporate Private Equity Trust 9th
   Other Financial     —  
Hanwha Smart Private Equity Securities 39th
   Other Financial     —  
GS Gold Scope Private Equity Securities Investment Trust 5th
   Other Financial     —  
Say New Vesta Private Equity Securities 7th
   Other Financial     —  
Hanhwa Private Equity Trust 3rd (Bond Mixed Type)
   Other Financial     —  
Woori Futures
   Futures     422,283  
Woori Investment Securities International Ltd.
   Securities     4,814  
Woori Investment & Securities (HK) Ltd.
   Securities     27,465  
Woori Investment Securities America
   Securities     8,071  
MARS First Private Equity Fund
   Other Financial     44,627  
MARS Second Private Equity Fund
   Other Financial     206,268  
MARS INS First Private Equity Fund
   Other Financial     2,545  
Woori Investment Asia Pte. Ltd.
   Securities     50,703  
Woori Absolute Partner PTE Ltd.
   Other Financial     3,978  
Woori Absolute Asia Global Opportunity Fund
   Other Financial     51,247  
LG Investment Holding B.V.(Amsterdam) GG
   Other Financial     32,311  
Connacht Capital Market Inv.
   Other Financial     44,638  
Woori Korindo Securities Indonesia
   Securities     18,991  

 

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        Total Assets (2010)  
Name of Company   Business Activities   (unit: in millions of Won)  
Woori CBV Securities Corporation
   Securities     9,464  
Woori Absolute Return Investment Strategies
   Other Financial     34,880  
Woori Investment Asia Co., Ltd.(Beijing)
   Investment Advisory     —  
Kofc Woori Growth Champ 2010-3 Private Equity Fund
   Other Financial     —  
KAMCO Value Recreation 9th Securitization Specialty Co., Ltd
   Other Financial     2,250  
G3 Pro Short-term 13
   Beneficiary Certificates     168  
G4 Pro Short-term 13
   Beneficiary Certificates     71  
Twins Subordinated Debt 1st
   Beneficiary Certificates     3  
Kyobo Gulliver Short-Term E-201
   Beneficiary Certificates     437  
Kyobo First Class Long-Term E-203
   Beneficiary Certificates     192  
Kyobo First Class Mid-Term E-209
   Beneficiary Certificates     45  
Cho Hung Clover HYA1
   Beneficiary Certificates     1,978  
G1 New Jump Long-Term Bond A-4th
   Beneficiary Certificates     5,823  
Best Optimax Mid-Term A3
   Beneficiary Certificates     709  
Best Optimax Mid-Term III A1
   Beneficiary Certificates     1,506  
Best Optimax Long-Term A1
   Beneficiary Certificates     434  
Woori AMC
   Other Financial     15,922  
Woori F&I Sixth Asset Securitization Specialty Co., Ltd.
   Other Financial     7,503  
Woori F&I Seventh Asset Securitization Specialty Co., Ltd.
   Other Financial     22,318  
Woori F&I Eighth Asset Securitization Specialty Co., Ltd.
   Other Financial     876  
Woori SB Tenth Asset Management Co., Ltd.
   Other Financial     46,585  
Woori F&I Tenth Asset Securitization Specialty Co., Ltd.
   Other Financial     5,398  
Woori F&I Eleventh Asset Securitization Specialty Co., Ltd.
   Other Financial     9,033  
Woori F&I Thirteenth Asset Securitization Specialty Co., Ltd.
   Other Financial     36,346  
Woori F&I Sixteenth Asset Securitization Specialty Co., Ltd
   Other Financial     25,520  
Woori EA Third Asset Securitization Specialty Co., Ltd.
   Other Financial     76,650  
Woori EA Fourth Asset Securitization Specialty Co., Ltd.
   Other Financial     80,167  
Woori EA Fifth Asset Securitization Specialty Co., Ltd.
   Other Financial     52,886  
Woori F&I Seventeenth Asset Securitization Specialty Co., Ltd
   Other Financial     129,613  
WR Investment LLC
   Other Financial     10  
Woori EA Eighth Asset Securitization Specialty Co., Ltd.
   Other Financial     72,923  
WR Investment America LLC
   Other Financial     28,520  
Woori F&I Eighteenth Asset Securitization Specialty Co., Ltd
   Other Financial     159,381  
Woori F&I Nineteenth Asset Securitization Specialty Co., Ltd
   Other Financial     —  
Woori EA Tenth Asset Securitization Specialty Co., Ltd.
   Other Financial     —  
Woori F&I Twentieth Asset Securitization Specialty Co., Ltd
   Other Financial     —  
Woori F&I Twenty First Asset Securitization Specialty Co., Ltd
   Other Financial     —  
Woori F&I Twenty Second Asset Securitization Specialty Co., Ltd
   Other Financial     —  
Woori EA Twelveth Asset Securitization Specialty Co., Ltd.
   Other Financial     —  
Woori Private Equity Fund
   Private Equity Investment     210,196  
Kumho Investment Bank
   Financial Services     1,953,706  
Woori EL Co., Ltd.
   Other Financial     30  
Two Eagles LLC
   Real Estate & Leasing     1,841  

 

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3.  
Capital Structure
a.  
Changes in Capital
(units: Won, shares)
                                         
        Stock Decrease/Increase  
Date   Category   Type   Quantity     Par Value     Issue price     Note  
2001.3.27
   Establishment   Common     727,458,609       5,000       5,000       —  
2002.5.31
   Exercise B/W   Common     165,782       5,000       5,000       —  
2002.6.12
   Capital increase w/ consideration   Common     36,000,000       5,000       6,800     Capital contribution ratio: 0.0494
2002.6.30
   Exercise B/W   Common     1,416,457       5,000       5,000       —  
2002.9.30
   Exercise B/W   Common     2,769,413       5,000       5,000       —  
2002.12.31
   Exercise B/W   Common     4,536       5,000       5,000       —  
2003.3.31
   Exercise B/W   Common     1,122       5,000       5,000       —  
2003.6.30
   Exercise B/W   Common     7,688,991       5,000       5,000       —  
2004.6.18
   Stock Exchange   Common     8,571,262       5,000       8,902     Exchange with Woori Sec shares on a 1-to-0.55 basis
2004.11.4
   Exercise CB   Common     666,301       5,000       5,380       —  
2004.12.2
   Exercise CB   Common     7,995,613       5,000       5,380       —  
2004.12.21
   Exercise CB   Common     3,717,472       5,000       5,380       —  
2005.2.17
   Exercise CB   Common     3,481,173       5,000       5,588       —  
2005.3.11
   Exercise CB   Common     5,914,180       5,000       7,313       —  
2005.3.11
   Exercise CB   Common     164,429       5,000       7,228       —  
b.  
Convertible Bonds
Not applicable
4.  
Total Number of Authorized Shares
a.  
Total Number of Authorized Shares
     
As of September 30, 2011   (unit: shares)
                 
    Type  
Items   Common Shares     Total  
Total number of shares authorized
     2,400,000,000       2,400,000,000  
Total number of issued stock
     806,015,340       806,015,340  
Treasury stock
     2,561       2,561  
Free float shares
     806,012,779       806,012,779  

 

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b.  
Treasury Stock
     
As of Septemeber 30, 2011   (unit: shares)
                                                     
Acquisition                                        
Method   Type of Stock   Beg.     Acquired     Disposal     Canceled     End     Remarks  
Direct purchase under Sub-section 1, section 165-2 of the Financial Investment Services and Capital Markets Act
   Common
Preferred		                                                
Direct purchase other than under Sub-section 1, section 165-2 of the Financial Investment Services and Capital Markets Act
   Common
Preferred		     2,561                               2,561          
Subtotal
   Common     2,561                               2,561          
 
   Preferred                                                
Indirect acquisition from trust agreement
   Common                                                
 
   Preferred                                                
Total
   Common     2,561                               2,561          
 
   Preferred                                                
5.  
Voting Rights
     
As of September 30, 2011   (unit: shares)
                     
Items   Number of stock     Notes  
Total number of shares
   Common Shares     806,015,340          
 
   Preferred Shares                
Stocks without voting rights
   Common Shares                
 
   Preferred Shares                
Stocks with limited voting rights under Korean securities & exchange Law
   —     2,561          
Stocks with voting rights restored
   —                
Stocks with voting rights
   Common Shares     806,012,779          
 
   Preferred Shares                

 

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6.  
Dividend Information
a.  
Dividend information for the past three years
                             
Items   2010(1)     2009(2)     2008(2)  
Par value per share (Won)     5,000       5,000       5,000  
Net profit (Won in Millions)     1,288,856       1,026,024       454,478  
Earnings per share (Won)     1,599       1,273       564  
Total cash payout (Won in Millions)     201,503       80,601       —  
Total stock dividends (Won in Millions)                     —  
Cash dividend payout ratio (%)     15.63       7.86          
Cash dividend yield (%)
   Common Shares     1.6       0.7          
 
   Preferred Shares                        
Stock dividend yield (%)
   Common Shares                        
 
   Preferred Shares                        
Cash dividend per share (Won)
   Common Shares     250       100          
 
   Preferred Shares                        
Stock dividend per share (Won)
   Common Shares                        
 
   Preferred Shares                        
     
(1)  
Net profit clculated on a consolidated Korean IFRS basis.
 
(2)  
Net profit clculated on a non-onsolidated Korean GAAP basis.

 

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II.  
Description of Business
1.  
Business Overview
a.  
Organizational Chart
(FLOW CHART)
(As of September 30, 2011)

 

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2.   Overview of Operations
a.   Performance of Operations
 
    As a financial holding company under the Financial Holding Company Act, our main income consists of dividend payments made to us by our subsidiaries. We are not involved in any other operations.
 
b.   Financing of Operations
  (1)   Source of Funds
(unit: in millions of Won)
                         
Items   2011 3Q     2010     2009  
Shareholders’ Equity
     13,962,103       13,804,170       13,720,923  
Capital
     4,030,077       4,030,077       4,030,077  
Capital Surplus
     109,025       84,488       179,488  
Retained Earnings
     9,823,019       9,689,624       8,346,186  
Capital Adjustments
     (18 )     (18 )     1,165,172  
Borrowings
     3,813,779       3,804,738       3,824,205  
Debentures
     3,654,831       3,654,843       3,744,156  
Bank Borrowings
     —       —       60,000  
Commercial Paper
     —       —       —  
Other Borrowings
     —       —       —  
Other Liabilities
     158,948       149,895       20,049  
Total
     17,775,882       17,608,908       17,545,128  
     
*   Separate basis.

 

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  (2)   Use of Funds
(unit: in millions of Won)
                         
Items   2011 3Q     2010     2009  
Subsidiary Stock
     17,493,228       17,383,228       17,350,078  
Woori Bank
     13,621,824       13,621,824       13,621,824  
Kyongnam Bank
     1,443,661       1,443,661       1,443,661  
Kwangju Bank
     976,284       946,284       976,284  
Woori FIS
     15,013       15,013       15,013  
Woori F&I
     166,563       166,563       166,563  
Woori Investment & Securities
     754,782       754,782       754,782  
Woori Asset Management
     67,456       67,456       67,456  
Woori Private Equity
     24,246       24,246       24,246  
Woori Financial
     207,346       207,346       207,346  
Woori Aviva Life Insurance
     106,053       106,053       72,903  
Woori Financial Group Savings Bank
     110,000       —          
Investment Securities
     —       —       —  
Loan Obligations
     994       994       139,300  
Tangible Assets
     549       593       415  
Intangible Assets
     31       35       8  
Cash
     96,268       65,346       23,267  
Other Assets
     184,812       158,712       32,060  
Total
     17,775,882       17,608,908       17,545,128  
     
*   Separate basis.
C.  
Transactions related to Commission Fees
Beginning in the third quarter of 2010, the Company receives brand usage fees, including from its subsidiaries, which are accounted for as commission revenue.
(unit: in millions of Won)
                         
Category   2011 3Q(1)     2010(1)     2009(2)  
Commission Revenue (A)
     50,662       35,626       —  
Commission Expense (B)
     5,971       4,209       7,001  
Commission Profit (A-B)
     44,691       31,417       (7,001 )
     
(1)  
Separate basis; based on Korean IFRS.
 
(2)  
Separate basis; based on Korean GAAP.

 

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3.   Other Information Relevant to Investment Decisions
 
a.   Selected Ratios
Won-denominated Current Ratio
(unit: in millions of Won)
                         
Items   2011 3Q(1)     2010(1)     2009(1)  
Current Assets (A)
     118,167       65,497       23,682  
Current Liabilities (B)
     13,391       9,260       8,995  
Current Ratio(2) (A/B)
     882.44 %     707.31 %     263.29 %
     
(1)   Separate basis.
 
(2)   Current ratio is calculated as the ratio of (i) Won-denominated assets with maturity of less than 1 month and (ii) Won-denominated liabilities with maturity of less than 1 month.
Debt Ratio
(unit: in millions of Won)
                         
Items   2011 3Q     2010     2009  
Liabilities (A)
     3,813,779       3,804,738       3,824,205  
Equity (B)
     13,961,365       13,804,170       13,720,923  
Debt Ratio (A/B)
     27.32 %     27.55 %     27.87 %
     
*   Separate basis.
BIS Ratio
(unit: in millions of Won)
                         
Items   2011 3Q(1)(2)     2010(3)     2009(3)  
Total Capital (A)
     25,723,447       24,839,544       24,824,094  
Risk weighted assets (B)
     208,085,558       198,250,944       200,954,776  
BIS Ratio (A/B)
     12.36 %     12.53 %     12.35 %
     
(1)   Estimate.
 
(2)   Consolidated basis; based on Korean IFRS.
 
(3)   Consolidated basis; based on Korean GAAP.

 

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b.   Credit Ratings for the Past Three Years
                 
    Evaluated   Credit   Company   Evaluation
Date of Rating   Securities   Rating   (Ratings Range)   Category
2007.05.07
       A2   Moody’s (Aaa ~ C)   Case evaluation
2007.08.17
   Debentures   AAA   NICE (AAA ~ D)   Case evaluation
2007.08.17
   Debentures   AAA   KIS Ratings (AAA ~ D)   Case evaluation
2007.11.27
   Debentures   AAA   NICE (AAA ~ D)   Case evaluation
2007.11.27
   Debentures   AAA   Korea Ratings (AAA ~ D)   Case evaluation
2008.04.03
   Debentures   AAA   KIS Ratings (AAA ~ D)   Case evaluation
2008.04.03
   Debentures   AAA   NICE (AAA ~ D)   Case evaluation
2008.06.04
       BBB+   S&P (AAA ~ D   Case evaluation
2008.06.12
   Debentures   AAA   NICE (AAA ~ D)   Case evaluation
2008.06.16
   Debentures   AAA   Korea Ratings (AAA ~ D)   Case evaluation
2008.09.12
   Debentures   AAA   NICE (AAA ~ D)   Case evaluation
2008.09.16
   Debentures   AAA   Korea Ratings (AAA ~ D)   Case evaluation
2008.12.02
   Debentures   AAA   KIS Ratings (AAA ~ D)   Case evaluation
2008.12.02
   Debentures   AAA   Korea Ratings (AAA ~ D)   Case evaluation
2009.03.13
   Debentures   AAA   Korea Ratings (AAA ~ D)   Case evaluation
2009.03.13
   Debentures   AAA   NICE (AAA ~ D)   Case evaluation
2009.06.30
   Debentures   AAA   NICE (AAA ~ D)   Case evaluation
2009.06.30
   Debentures   AAA   Korea Ratings (AAA ~ D)   Case evaluation
2009.11.05
   Debentures   AAA   Korea Ratings (AAA ~ D)   Case evaluation
2009.11.05
   Debentures   AAA   KIS Ratings (AAA ~ D)   Case evaluation
2010.05.10
   Debentures   AAA   Korea Ratings (AAA ~ D)   Case evaluation
2010.05.10
   Debentures   AAA   KIS Ratings (AAA ~ D)   Case evaluation
2010.07.23
   Debentures   AAA   Korea Ratings (AAA ~ D)   Case evaluation
2010.07.23
   Debentures   AAA   NICE (AAA ~ D)   Case evaluation
2010.10.28
   Debentures   AAA   Korea Ratings (AAA ~D)   Case evaluation
2010.10.28
   Debentures   AAA   KIS Ratings (AAA ~D)   Case evaluation
2011.02.14
   Debentures   AAA   NICE (AAA ~ D)   Case evaluation
2011.02.14
   Debentures   AAA   KIS Ratings (AAA ~D)   Case evaluation
2011.03.02
   Debentures   AAA   Korea Ratings (AAA ~D)   Case evaluation
2011.03.03
   Debentures   AAA   KIS Ratings (AAA ~D)   Case evaluation
2011.05.12
   Debentures   AAA   NICE (AAA ~ D)   Case evaluation
2011.05.12
   Debentures   AAA   Korea Ratings (AAA ~D)   Case evaluation
2011.08.11
   Debentures   AAA   NICE (AAA ~ D)   Case evaluation
2011.08.11
   Debentures   AAA   KIS Ratings (AAA ~D)   Case evaluation

 

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c.   30 Largest Exposures by Borrower
     
(As of September 30, 2011)   (unit: in hundred millions of Won)
                                                                 
                                            Total                
            Pre-     Sub-             Estimated     Credit             Total  
Name   Normal     cautionary     standard     Doubtful     Loss     Exposure     Securities     Exposure  
Korea Finance Corporation
     —       —       —       —       —       —       28,307       28,307  
Korea Land & Housing Corporation
     102       —       —       —       —       102       21,533       21,635  
Korea Deposit Insurance Corporation
     10,129       —       —       —       —       10,129       7,349       17,478  
Samsung Electronics
     15,607       —       —       —       —       15,607       168       15,755  
Korea Housing Finance Corporation
     —       —       —       —       —       —       15,444       15,444  
Kookmin Bank
     1,870       —       —       —       —       1,870       12,553       14,423  
Industrial Bank of Korea
     7       —       —       —       —       7       13,691       13,698  
Hyundai Heavy Industries
     8,178       —       —       —       —       8,178       4,206       12,384  
SH Corporation
     6,337       —       —       —       —       6,337       5,743       12,080  
Korea Development Bank
     —       —       —       —       —       —       11,563       11,563  
Sungdong Shipbuilding & Marine
     5,165       5,727       —       —       —       10,892       —       10,892  
Shinhan Bank
     —       —       —       —       —       —       10,304       10,304  
Hyundai Steel
     7,556       —       —       —       —       7,556       537       8,093  
Korea Electronic Power Corporation
     —       —       —       —       —       —       7,705       7,705  
Kumho Tire
     293       5,978       —       —       —       6,271       1,132       7,403  
Hynix
     2,302       —       —       —       —       2,302       4,882       7,184  
LG Chemical
     7,159       —       —       —       —       7,159       8       7,167  
Hyosung
     6,516       —       —       —       —       6,516       223       6,739  
SPP Shipbuilding
     2,226       4,382       —       —       —       6,608       —       6,608  
National Agricultural Cooperative Federation
     789       —       —       —       —       789       5,605       6,394  
STX Shipbuilding
     6,359       —       —       —       —       6,359       —       6,359  
Daewoo International
     6,178       —       —       —       —       6,178       —       6,178  
Deawoo E&C
     5,633       —       —       —       —       5,633       14       5,647  
LG Display
     4,450       —       —       —       —       4,450       853       5,303  
Hyundai Capital
     2,600       —       —       —       —       2,600       2,648       5,248  
Kumho Industrial
     403       4,260       —       —       —       4,663       335       4,998  
Small&Medium Business Corporation
     —       —       —       —       —       —       4,949       4,949  
POSCO
     724       —       —       —       —       724       3,995       4,719  
ShinaSB Yard
     2,966       —       10       1,736       —       4,712       —       4,712  
Samsung Heavy Industries
     4,623       —       —       —       —       4,623       51       4,674  
Total
     108,172       20,347       10       1,736       —       130,265       163,776       294,041  
     
*  
Based on Woori Bank, Kyongnam Bank, Kwangju Bank, Woori Investment & Securities, Woori Financial, Woori Aviva Life Insurance and Woori Financial Group Savings Bank.

 

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d.   20 Largest Loan Exposures Classified as Sub-Standard or Below by Borrower
     
(As of September 30, 2011)   (unit: in hundred millions of Won)
                             
                Sub-standard or        
Name   Industry   Total Exposure     below     Loan Loss Reserve  
A  
Real Estate & Leasing
     3,985       3,572       3,492  
B  
Construction
     3,491       3,478       2,706  
C  
Manufacturing
     4,712       1,746       1,000  
D  
Wholesale and Retail Trade
     1,669       1,669       1,032  
E  
Construction
     1,583       1,583       1,114  
F  
Manufacturing
     1,684       1,536       1,021  
G  
Construction
     1,314       1,314       1,175  
H  
Manufacturing
     1,179       1,179       775  
I  
Construction
     1,008       1,008       413  
J  
Finance & Insurance
     1,001       1,001       405  
K  
Real Estate & Leasing
     1,000       1,000       416  
L  
Manufacturing
     887       878       438  
M  
Manufacturing
     1,619       784       268  
N  
Construction
     630       630       309  
O  
Construction
     625       623       82  
P  
Finance & Insurance
     558       558       181  
Q  
Construction
     555       555       437  
R  
Construction
     826       511       367  
S  
Lodging
     481       481       258  
T  
Manufacturing
     457       418       152  
   
Total
     29,264       24,524       16,041  
     
*  
Based on Woori Bank, Kyongnam Bank, Kwangju Bank, Woori Investment & Securities, Woori Financial, Woori Aviva Life Insurance and Woori Financial Group Savings Bank.
e.   Recent Developments
On February 18, 2011, Woori Finance Holdings was selected as the preferred bidder for the purchase of the assets and assumption of the liabilities of Samhwa Mutual Savings Bank and signed a memorandum of understanding on March 11, 2011 with KDIC relating to such purchase and assumption. In order to effect such purchase and assumption, Woori Finance Holdings established a new subsidiary, Woori Financial Group Savings Bank Co., Ltd., which began its operations on March 25, 2011.

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III.   Financial Information
1.   Condensed Financial Statements (Separate)
(unit: in millions of Won, except per share amounts)
                 
Items   2011 3Q     2010  
Cash and Bank Deposits
     96,268       65,345  
Loans and Receivables
     182,569       155,209  
Investment Securities Accounted for Using the Equity Method of Accounting
     17,493,228       17,383,228  
Tangible Assets
     549       593  
Intangible Assets
     31       35  
Other Assets
     2,395       3,370  
Deferred Tax Asset
     842       1,128  
Total Assets
     17,775,882       17,608,908  
Debentures
     3,645,831       3,654,844  
Provisions
     1,487       —  
Income Tax Payable
     124,459       124,078  
Other Financial Liabilities
     31,257       23,889  
Other Liabilities
     1,746       1,927  
Total Liabilities
     3,813,779       3,804,738  
Common Stock
     4,030,077       4,030,077  
Capital Surplus
     109,025       84,488  
Other Capital
     (18 )     (18 )
Retained Earnings
     9,823,020       9,689,623  
Total Capital
     13,962,103       13,804,170  
Net Interest Income
     (163,222 )     (176,153 )
Net fees and Commissions
     44,691       13,597  
Dividends
     516,008       407,130  
Reversal of Allowance for Doubtful Accounts
     —       (242 )
Other Operating Income
     (37,754 )     (26,620 )
Net Profit from Continuing Operations before Corporate Income Tax
     359,722       219,196  
Total Net Income
     359,436       220,345  
Total Comprehensive Income
     359,436       220,345  
Earnings Per Share (in Won)
     446       273  
     
*   Income / loss items for 2010 are stated on a cumulative basis for the nine months ended September 30, 2010

 

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2.   Condensed Financial Statements (Consolidated)
(unit: in millions of Won)
                 
Items   2011 3Q     2010  
Cash and Due from Banks
     4,338,839       3,483,407  
Financial Assets at Fair Value through Profit or Loss
     23,773,642       21,836,947  
Available-for-Sale Financial Assets
     20,882,885       22,344,698  
Held-to-Maturity Financial Assets
     20,390,244       19,885,559  
Loans and Receivables
     238,370,167       218,179,507  
Jointly Controlled Associates
     912,373       744,844  
Investment Properties
     493,508       643,271  
Tangible Assets
     3,102,384       3,097,378  
Intangible Assets
     461,257       295,136  
Other Assets
     467,576       378,858  
Prepaid Tax Assets
     31,077       9,568  
Deferred tax assets
     70,242       58,705  
Derivatives Assets
     349,926       131,511  
Held-for-Sale Assets Group
     140,368       87,926  
Total Assets
     313,784,488       291,177,315  
Financial Liabilities at Fair Value through Profit or Loss
     9,778,236       8,838,281  
Deposits
     192,620,167       185,427,625  
Borrowings
     35,393,251       34,265,662  
Debentures
     30,151,958       29,110,640  
Provisions
     816,443       761,055  
Retirement Benefit Obligations
     172,683       69,949  
Tax Liabilities
     230,661       173,960  
Other Financial Liabilities
     22,533,680       11,607,333  
Other Liabilities
     559,945       399,189  
Deferred Tax Liabilities
     287,757       212,534  
Derivatives Liabilities
     37,216       5,339  
Total Liabilities
     292,581,997       270,871,567  
Equity Ownership of Controlled Entity
     16,863,337       15,742,534  
Capital Stock
     4,030,077       4,030,077  
Capital Surplus
     179,950       180,105  
Other Equity
     583,723       1,043,013  
Retained Earnings
     12,069,587       10,489,339  
Non-Controlling Equity
     4,339,154       4,563,214  
Total Capital
     21,202,491       20,305,748  

 

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Items   2011 3Q     2010  
Net Interest Income
     5,397,899       4,735,249  
Net Fee income
     913,552       808,992  
Dividend Income on Securities
     160,477       163,262  
Gain(loss) on Financial Assets at Fair Value through Profit or Loss
     71,308       2,402  
Gain on Available-for-Sale Financial Assets
     1,041,181       1,029,886  
Gain on Held-to-Maturity Financial Assets
     —       21  
Impairment on Credit Loss
     1,685,883       2,030,787  
Other Operating Income
     (3,233,027 )     (2,768,218 )
Operating Income
     2,665,507       1,940,807  
Gain on Equity Method Investments
     56,906       11,068  
Income before Income Tax Expense
     2,722,413       1,951,875  
Total Net Income
     2,012,071       1,516,716  
Net income attributable to shareholders
     1,780,458       1,234,038  
Net income attributable to the non-controlling interests
     231,613       282,678  
Other Comprehensive Income
     (428,870 )     (226,110 )
Total Comprehensive Income
     1,583,201       1,290,606  
Comprehensive Income Attributed to Shareholders
     1,329,467       1,018,024  
Comprehensive Income Attributed to the Non-Controlling Interests
     253,734       272,582  
Earnings per Share (in Won)
     2,209       1,531  
Consolidated Subsidiries
     131       148  
     
*   Income/loss items for 2010 are stated on a cumulative basis for the nine months ended September 30, 2010.
IV.   Independent Auditor’s Opinion
1.   Independent Auditor’s Opinion
                                 
    2011 3Q     2010 3Q   2010   2009
Auditor
   Deloitte Anjin LLC   Deloitte Anjin LLC   Deloitte Anjin LLC   Deloitte Anjin LLC
Auditor’s Opinion
     (1)   Unqualified Opinion   Unqualified Opinion   Unqualified Opinion
     
(1)  
In its review report attached to this report, Deloitte Anjin LLC has stated that nothing has come to their attention that causes them to believe that the accompanying consolidated financial statements of the Company as of December 31, 2010 and September 30, 2011 and for the nine months ended September 30, 2010 and 2011 do not present fairly, in all material respects, in accordance with Korean IFRS 1034 Interim Financial Reporting, and the requirements of Korean IFRS 1101 First-time adoption of Korean International Financial Reporting Standard, relevant to interim financial reporting.

 

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2.   Compensation to the Independent Auditor for the Past Three Years
a.   Auditing Service
(units: in millions of Won, hours)
                               
                          Accrued Time  
Year   Auditor   Activity   Compensation(1)     (hrs)  
2011 3Q     Deloitte Anjin LLC   Review of Quarter and Half Year financial statements and audit of Annual financial statements (Consolidated, Separate)     426       5,050  
2010     Deloitte Anjin LLC   Review of Quarter and Half Year financial statements and audit of Annual financial statements (Consolidated, Non-consolidated)     342       6,148  
2009     Deloitte Anjin LLC   Review of Quarter and Half Year financial statements and audit of Annual financial statements (Consolidated, Non-consolidated)     342       4,941  
     
(1)   on an annual basis
b.   Compensation for Services Other than the Audit
(unit: in millions of Won)
                                         
Year   Contract Date     Activity   Period     Comp.     Note  
2011 3Q
     2011.06.27     PCAOB and SOX Auditing     2011.07~2012.04       1,266       —  
 
     2011.04.30     Corporate tax reconciliation     2011.07~2011.08       35          
 
                     2012.02~2012.03                  
 
                                        
2010
     2011.03.07     US GAAPand SOX Auditing     2010.12~2011.05       2,306       —  
 
     2010.04.30     Corporate tax reconciliation     2010.07~2010.08       72          
 
           (Consolidated tax return advice)     2011.02~2011.03                  
 
                                        
2009
     2009.12.21     US GAAPand SOX Auditing     2009.12~2010.05       3,006       —  
 
     2009.04.29     Corporate tax reconciliation     2009.07~2009.08       31          
 
           (Consolidated tax return review)     2010.2~2010.3                  

 

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V.   Corporate Governance and Affiliated Companies
1.   About the Board of Directors
  A.   Composition of our board of directors
After the general shareholders’ meeting on March 25, 2011
             
        Relationship with    
Name   Career & Academic Background   Largest Shareholder   Notes
Pal Seung Lee
(Standing Director)
  
- Current) Chairman and chief executive officer of Woori Finance Holdings
   None   Chairman of the board
 
- Chief executive officer, Woori Securities
        
 
- Executive managing director, Hanil Bank
        
  - Bachelor of Law, Korea University        
Yong-Man Rhee
(Non-Standing Director)
  
- Current) Committee Member, National Elders Committee
   None   New Appointment
  - Governor, Bank Supervisory Service        
  - Minister, Ministry of Finance and Economy        
 
- Graduate School of Public Administration, Korea University
        
Min-Joon Bang
(Non-standing Director)
   - Current) Vice President, New Daily   None   Fourth consecutive term
 
- Arbitration Commissioner of Press Arbitration Commission
        
  - Head of Editorial Desk, Korea Times        
 
- Bachelor of Arts (Korean Language and Literature), Seoul National University
        
Hi-Taek Shin
(Non-standing Director)
  
- Current) Professor of College of Law, Seoul National University
   None   Fourth consecutive term
  - Lawyer, Kim & Chang Law Firm        
 
- Bachelor of Law, Seoul National University
        
  - Master of Law, Seoul National University        
  - J.S.D, Yale Law School        
Kwang-Yie Kim
(Non-standing Director)
  
- Current) Director of Office of the Auditor, Korea Deposit Insurance Corporation
   Employee of the largest shareholder   New Appointment
  - Ministry of Finance and Economy        
 
- Bachelor of Science (Biochemistry), Yonsei University
        
Doo-Hee Lee
(Non-standing Director)
  
- Current) Professor of College of Business Administration, Korea University
   None   Third consecutive term
  - President, Korea Advertising Society        
 
- Bachelor of Business Administration, Korea University
        
 
- Ph.D. in Business Administration, Michigan State University
        
Hun Lee
(Non-standing Director)
  
- Current) Co-Head, The Lawyers for Citizens
   None   Third consecutive term
  - Lawyer, Barun Law        
  - Bachelor of Law, Chung-Ang University        
John Ji Whan Park
(Non-standing Director)
  
- Current) Representative Director, Asia Evolution
   None   New Appointment
  - Director, AT&T Network System        
  - Director, Goldman Sachs        
 
- Bachelor of Arts (Economics), Brown University
        
 
- Master of Business Administration, Harvard University
        

 

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  B.   Committees under the Board of Directors
    We currently have the following management committees serving under the board of directors:
  (a)   Management Committee
 
  (b)   Business Development and Compensation Committee
 
  (c)   Risk Management Committee
 
  (d)   Standing Directors Committee
 
  (e)   Ethics Committee
 
  (f)   Outside Directors Recommendation Committee
 
  (g)   MOU Evaluation Committee
 
  (h)   Audit Committee
 
  (i)   Audit Committee Member Candidate Recommendation Committee
After the general shareholders’ meeting on March 25, 2011
         
Name   Position   Notes
Management Committee
   Pal Seung Lee
Yong-Man Rhee
Min-Joon Bang
Hi-Taek Shin
Doo-Hee Lee		   Chairman and CEO Pal Seung Lee heads this committee consisting of the heads of the sub-committees.
Business Development and Compensation Committee
   Yong-Man Rhee
Min-Joon Bang
Hun Lee
John Ji Whan Park		   Non-standing director Yong-Man Rhee heads this committee consisting of no fewer than three non-standing directors.
Risk Management Committee
   Pal Seung Lee
Min-Joon Bang
Kwang-Yie Kim
Hun Lee
John Ji Whan Park		   Chairman and CEO Pal Seung Lee heads this committee. The committee consists of the Chairman and CEO, inside director in charge of finance and no fewer than three non-standing directors.
Standing Directors Committee
   Pal Seung Lee   Chairman and CEO Pal Seung Lee heads the committee consisting of all executive directors.
Ethics Committee
   Pal Seung Lee
Min-Joon Bang
Doo-Hee Lee
Kwang-Yie Kim
John Ji Whan Park
   Non-standing director Min-Joon Bang heads this committee consisting of all executive directors and no fewer than two non-standing directors.
Outside Directors Recommendation Committee
   Pal Seung Lee
Hi-Taek Shin
Doo-Hee Lee
Kwang-Yie Kim
John Ji Whan Park		   Non-standing director Doo-Hee Lee heads this committee consisting of the Chairman and CEO and no fewer than three non-standing directors.
MOU Evaluation Committee
   Pal Seung Lee
Yong-Man Rhee
Min-Joon Bang
Hi-Taek Shin
Kwang-Yie Kim
Doo-Hee Lee
Hun Lee
John Ji Whan Park		   Chairman and CEO Pal Seung Lee heads this committee consisting of the entire board of directors.
Audit Committee
   Yong-Man Rhee
Hi-Taek Shin
Kwang-Yie Kim
Doo-Hee Lee
Hun Lee		   Consists of no fewer than 3 directors and one financial expert, at least two-thirds of whom are non-standing directors
Audit Committee Member Candidate Recommendation Committee
   Yong-Man Rhee
Min-Joon Bang
Hi-Taek Shin
Kwang-Yie Kim
Doo-Hee Lee
Hun Lee
John Ji Whan Park		   Non-standing director Doo-Hee Lee heads this committee consisting of all non-standing directors.

 

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2.   Related Companies
(GRAPHICS)

 

31

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3.   Investments in Other Companies
     
As of September 30, 2011   (units: shares, millions of Won, %)
                                                                                         
                                                                            Total Assets     Net Income  
    Beginning Balance     Changes(1)     Ending Balance     as of the     for the  
                                          Valuation                           Most Recent     Most Recent  
Name   Quantity     Share     Book value     Quantity     Cost     Gain/Loss     Quantity     Share     Book value     Fiscal Year     Fiscal Year(2)  
Woori Bank
     765,956,580       100.0       13,621,824       —       —               765,956,580       100.0       13,621,824       223,488,079       1,107,785  
Kwangju Bank
     49,413,333       99.9       976,284       13       0.27               49,413,346       99.9       976,284       16,509,081       105,529  
Kyongnam Bank
     58,049,994       99.9       1,443,661       4       0.11               58,049,998       99.9       1,443,661       21,800,984       144,302  
Woori FIS (formerly Woori Finance Information System)
     900,000       100.0       15,013       —       —               900,000       100.0       15,013       220,469       2,144  
Woori F&I
     6,000,000       100.0       166,563       —       —               6,000,000       100.0       166,563       1,037,376       40,367  
Woori Investment & Securities
     46,324,981       35.0       754,782       —       —               46,324,981       35.0       754,782       19,359,159       153,315  
Woori Asset Management
     6,662,000       100.0       67,456       —       —               6,662,000       100.0       67,456       82,345       1,857  
Woori Private Equity
     4,000,000       100.0       24,246       —       —               4,000,000       100.0       24,246       27,428       1,705  
Woori Financial
     8,909,439       52.5       207,346       —       —               8,909,439       52.5       207,346       2,776,670       31,641  
Woori Aviva Life Insurance
     7,601,091       51.6       106,053       —       —               7,601,091       51.6       106,053       2,608,573       (1,994 )
Woori FG Savings Bank
                             6,320,000       110,000               6,320,000       100.0       110,000       716,501       398  
Total
     953,817,418       —       17,383,228       6,320,017       110,000               953,817,435       —       17,493,228       288,626,665       1,587,049  
     
1.  
The changes in quantity and cost are calculated from the increase or decrease under the equity method.
 
2.  
The figures for the net income for the most recent fiscal year are calculated on a non-consolidated basis in accordance with Korean GAAP.
 
3.  
The figures for the net income for the most recent fiscal year as stated above are for the fiscal year ended December 31, 2010, except for the figures for the latest net income of Woori Asset Management, Woori Investment & Securities and Woori Aviva Life Insurance, which are for the fiscal year ended March 31, 2011, and for the latest net income of Woori Financial Group Savings Bank, which are for the fiscal year ended June 30, 2011.

 

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VI.   Stock Information
1.   Stock Distribution
a.   Stock Information of the Largest Shareholder and Specially Related Parties
As of September 30, 2011   (units: shares, %)
                                                                 
            Shares Held     Reasons  
            Beginning balance                     Ending balance     Behind  
Name   Relation   Type   Stock     Share     (+)     (-)     Stock     Share     Change  
KDIC
   Largest S/H   Common     459,198,609       56.97       —       —       459,198,609       56.97          
 
   Total   Common     459,198,609       56.97       —       —       459,198,609       56.97          
 
       Preferred     —       —       —       —       —       —          
 
       Total     459,198,609       56,97       —       —       459,198,609       56.97          
Largest Shareholder: KDIC
b.   Share Ownership of More Than 5%
As of September 30, 2011   (units: shares, %)
                                                         
            Common Stock     Preferred Stock     Total  
No.   Name     No. of shares     %     No. of shares     %     No. of shares     %  
1
   KDIC     459,198,609       56.97       —       —       459,198,609       56.97  
 
   Total     459,198,609       56.97       —       —       459,198,609       56.97  

 

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2.   Stock Price and Stock Market Performance for the Past Six Months
a.   Domestic Stock Market
(units: Won, shares)
                                                     
Period   April 2011     May 2011     June 2011     July 2011     August 2011     September 2011  
Common Stock   High     15,400       14,650       13,950       14,500       14,250       11,500  
 
   Low     13,600       13,000       12,400       13,500       11,100       8,500  
 
   Average     14,260       13,730       13,390       14,026       12,045       9,916  
Monthly Trade Volume   High     11,795,416       7,578,673       5,907,159       3,633,844       11,716,674       6,725,107  
 
   Low     3,138,816       1,364,018       1,268,584       712,920       1,527,335       2,799,533  
 
   Average     105,806,056       68,027,477       61,791,785       41,752,281       81,533,208       94,073,740  
b.   Foreign Stock Market (NYSE)
(units: US Dollars, ADRs)
                                                     
Period   April 2011     May 2011     June 2011     July 2011     August 2011     September 2011  
ADR   High     42.37       40.82       39.70       41.05       40.14       32.38  
 
   Low     37.62       35.33       34.42       37.85       30.00       22.19  
 
   Average     39.53       38.25       37.30       39.70       33.27       26.49  
Won Con-version   High     46,378       43,812       42,801       43,320       42,271       34,660  
 
   Low     40,927       38,252       37,480       40,019       32,766       26,317  
 
   Average     42,958       41,444       40,329       42,059       35,699       29,631  
Monthly Trade Volume   High     168,500       27,000       224,900       9,400       41,800       54,300  
 
   Low     1,000       2,000       2,800       1,600       2,100       3,300  
 
   Monthly Total     270,000       173,900       767,400       107,200       264,800       284,100  

 

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VII.   Directors and Employee Information
1.   Directors
As of September 30, 2011
                     
Position   Name   Common Stock Owned     Expiration of Term
Chairman and CEO   Registered   Pal Seung Lee     60,000     March 24, 2014
Senior Managing Director   Non-Registered   Yang Jin Kim           March 31, 2013
Senior Managing Director   Non-Registered   Jeong Han Kim           October 15, 2011
Senior Managing Director   Non-Registered   Rok Hwang           March 31, 2013
Senior Managing Director   Non-Registered   Hyun Jin Jung           September 12, 2012
Senior Managing Director   Non-Registered   Byoung Yoon Jeon           September 26, 2012
Managing Director   Non-Registered   Sung Jae Park     353     February 9, 2012
Managing Director   Non-Registered   Seong Kook Jo           September 26, 2012
Managing Director   Non-Registered   Hong Dall Kim           September 26, 2012
Non-standing Director   Registered   Min-Joon Bang           March 24, 2012
Non-standing Director   Registered   Hi-Teak Shin           March 24, 2012
Non-standing Director   Registered   Doo-Hee Lee           March 24, 2012
Non-standing Director   Registered   Hun Lee           March 24, 2012
Non-standing Director   Registered   Yong-Man Rhee           March 24, 2013
Non-standing Director   Registered   Kwang-Yie Kim           March 24, 2013
Non-standing Director   Registered   John Ji Whan Park           March 24, 2013
     
*   Common Stock held by Pal Seung Lee as of November 23, 2011: 63,000 shares
2.   Employee Status
     
As of September 30, 2011   (units: persons, thousands of Won)
                                                       
                                    Average         Average  
    Staff     Tenure     Cumulative   Compensation  
Items   Admin.     Manu.     Misc.     Total     Years     Compensation   Per Person   Note
Total
     143       1       7       151     2 years and 10 months     7,136,897     47,264    
3.   Directors’ Compensation
(unit: in millions of Won)
                             
                    Average Compendation      
Items   Total Compensation     Number of Person     Per employee     Note
Standing Director
     449       1       449      
Non-standing Directors (excluding audit committee member)
     53       2       26      
Audit Committee Members
     115       5       23     No compensation was provided for one of the members of the Audit Committee
     
(1)   Cumulative basis from January 1 to September 30, 2011.
 
*   Compensation limit for the Standing Director, Non-standing Directors and Audit Committee Members, on an aggregate basis, as approved at the annual general meeting of shareholders was W4,000 million.

 

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VIII.   Related Party Transactions
1.   Transactions with Affiliated Parties
a.   Transactions of Provisional Payments and Loans (including secured loans)
(unit: in millions of Won)
                                                         
                    Changes        
Name   Relation     Item     Beg.     +     -     End     Notes  
Woori Financial
   Subsidiary   Other Loan       1,000       —       —       1,000          
Total
                     1,000       —       —       1,000          
b.   Payment Transactions
(unit: shares)
                                                 
        Capital Contribution and Share Disposal  
            Transactions        
Name   Relation   Types of Shares   Beginning     Increase     Decrease     Ending     Notes  
Woori Bank
   Subsidiary   Common stock     695,956,580       —       —       695,956,580          
 
       Preferred Stock     70,000,000       —       —       70,000,000          
Kwangju Bank
   Subsidiary   Common stock     49,413,333       13       —       49,413,346          
Kyongnam Bank
   Subsidiary   Common stock     58,049,994       4       —       58,049,998          
Woori FIS (formerly Woori Finance Information System)
   Subsidiary   Common Stock     900,000       —       —       900,000          
Woori F&I
   Subsidiary   Common Stock     6,000,000       —       —       6,000,000          
Woori Investment & Securities
   Subsidiary   Common Stock     46,324,981       —       —       46,324,981          
Woori Asset Management
   Subsidiary   Common Stock     6,662,000       —       —       6,662,000          
Woori Private Equity
   Subsidiary   Common Stock     4,000,000       —       —       4,000,000          
Woori Financial
   Subsidiary   Common Stock     8,909,439       —       —       8,909,439          
Woori Aviva Life Insurance
   Subsidiary   Common Stock     7,601,091       —       —       7,601,091          
Woori Financial Group Savings Bank
   Subsidiary   Common Stock             6,320,000               6,320,000          
Total
             953,817,418       6,320,017       —       960,137,435          

 

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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
         
  Woori Finance Holdings Co., Ltd.
(Registrant)
 		  
Date: November 29, 2011  By:   /s/ Woo Seok Seong    
    (Signature)   
    Name:  Woo Seok Seong  
    Title:   General Manager   
 

 

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