U.S. 165(d) Reduced Resolution Plan

Public Section

December 2018

PUBLIC INFORMATION OF WOORI BANK

This document contains forward-looking statements. Statements that are not historical facts, including statements about Woori Bank’

beliefs and expectations, are forward-looking statements. These statements are based on current plans, estimates and projections, and 

therefore undue reliance should not be placed on them. The forward-looking information contained in this document is presented for the 

purpose of interpreting the information contained herein and may not be appropriate for other purposes. Forward-looking statements 

speak only as of the date they are made, and Woori Bank undertakes no obligation to update publicly any of them in light of new 

information or future events.
WRB 165(d) Reduced Resolution Plan 2 Public Section

Contents

(a) Public Section.....................................................................................................................................3

1. Introduction ........................................................................................................................................................3

1.1 U.S. Reduced Resolution Plan ................................................................................................................3

1.2 Overview of Woori Bank .........................................................................................................................4

2. Material Entities.................................................................................................................................................8

3. Core Business Lines...........................................................................................................................................8

4. Financial Information........................................................................................................................................9

4.1 Financial Statements..................................................................................................................................9

4.2 Capital Adequacy ..................................................................................................................................... 11

4.3 Major Source of Funds ........................................................................................................................... 12

4.4 Liquidity Risk Management................................................................................................................... 12

5. Derivatives and Hedging Activities.............................................................................................................. 12

6. Memberships in Payment, Clearing and Settlement Systems.............................................................. 13

7. Description of Foreign Operations.............................................................................................................. 14

8. Supervisory & Regulatory Authorities........................................................................................................ 14

9. Principal Officers of Woori Bank ................................................................................................................. 15

10. Resolution Planning Corporate Governance Structure and Processes .............................................. 16

11. Management Information Systems............................................................................................................ 16

12. High-Level Resolution Strategy Summary ................................................................................................. 16
WRB 165(d) Reduced Resolution Plan 3 Public Section

(a) Public Section 

1. Introduction

1.1 U.S. Reduced Resolution Plan

Woori Bank (“WRB”) was established in 1899 and is headquartered in Seoul, Republic of Korea

(“Korea”). WRB is engaged in the commercial banking business under Korea Banking law, trust 

business under Korea Financial Investment Services and Capital Market Act, and foreign exchange 

business with approval from the Bank of Korea (“BOK”) and the Ministry of Finance and Economy 

(“MOFE”). 

WRB was a wholly owned subsidiary of Woori Finance Holdings Co., Ltd. (“WFH”), a foreign-based 

financial holding company established in 2001, until WFH was merged with and into WRB on 

November 1, 2014. As a result of the merger, WFH lost its eligibility for a covered company and 

instead, WRB became responsible for submission of U.S. Resolution Plan as a new covered company

since 2014. Accordingly, for purposes of 2018 U.S. Reduced Resolution Plan (“Resolution Plan”), 

which is required for filing prior to December 31, 2018, WRB prepares and submits Resolution Plan 

on behalf of its U.S operations including Woori Bank New York Agency (“WBNYA”), Woori Bank Los 

Angeles Branch (“WBLAB”) and Woori America Bank (“WAB”).

This Resolution Plan is being filed by WRB pursuant to Section 165(d) of the Dodd-Frank Wall Street 

Reform and Consumer Protection Act ( “Dodd-Frank Act”) and implementing regulation issued by 

the Board of Governors of the Federal Reserve System (“FRB”) [12 C.F.R. Part 243] and the Federal 

Deposit Insurance Corporation (“FDIC”) [12 C.F.R Part 381] (together, the “Regulation”).

Section 165(d) of the Dodd-Frank Act and the Regulation require a foreign bank or company that is, 

or is treated as, a bank holding company under section 8(a) of the International Banking Act of 1978 

(“IBA”) [12 U.S.C. §§3101 et seq.] and that has $50 billion or more in total consolidated assets to 

submit annually a plan for the rapid and orderly resolution of a Covered Company’s operations in the 

United States (“U.S.”) in the event of material financial distress or failure.

WRB is a foreign bank under Section 8(a) of the IBA, as it maintains U.S. operations through its 

agency, branch and subsidiary. As of December 31, 2017, WRB’s total consolidated assets exceeded 

$50 billion. Accordingly, WRB is defined as a foreign-based Covered Company subject to the U.S. 

Resolution Plan under Section 165(d) of Dodd-Frank Act and the Regulation.

Under the Regulation, a foreign-based Covered Company that (i) has less than $100 billion in total 

U.S. non-bank assets and (ii) has 85 percent or more of its U.S. total consolidated assets comprised 

of the company’s U.S. insured depository institution and U.S. insured or uninsured branches and 

agencies is eligible, upon notice to and non-objection from FRB and FDIC, to submit a tailored, or 

simplified Resolution Plan. As of December 31, 2017, WRB meets the criteria outlined above to be 

eligible to submit a Tailored Resolution Plan.

On June 10, 2016, FRB and FDIC notified WRB, that following their review of the WRB's 2015 Tailored 

Resolution Plan, the Agencies have jointly determined, as authorized under section _.4(k) of the 
WRB 165(d) Reduced Resolution Plan 4 Public Section

Resolution Plan Rule, to reduce the informational content WRB will be required to provide in its 

resolution plan submissions due by December 31 of 2016, 2017, and 2018.

This Public Section of the Resolution Plan provides an executive summary of WRB’s overall 

resolution strategy for its U.S. operations. 

1.2 Overview of Woori Bank

The official address for WRB’s head office is 51, Sogong-ro, Jung-gu, Seoul, Korea. WRB operates a 

network of 878 domestic branches, as well as 301 oversea networks in 25 countries around the 

world.1

WRB provides financial products and services to its corporate and retail customers, which are mainly 

comprised of large corporations, small and medium-sized enterprises (“SMEs”), and individuals. WRB 

also operates subsidiaries of domestics and overseas operations. Please refer to Exhibit 1.2 1 for the 

full list of WRB’s subsidiaries.

Exhibit 1.2-1: WRB operations by Legal Entity

Location Name of Subsidiaries % of Ownership No. of Company 

Domestic

Woori Card

Woori Investment Bank

Woori FIS

Woori Finance Research Institute

Woori Credit Information

Woori Fund Service

Woori Private Equity Asset Management

Korea BTL Infrastructure Fund

100%

59.8%

100%

100%

100%

100%

100%

99.9%

8 companies

Overseas

Woori America Bank

Woori Bank (China) Ltd

Woori Global Markets Asia Ltd

PT Bank Woori Saudara Indonesia 1906 Tbk

AO Woori Bank

Banco Woori Bank do Brasil S.A

Woori Finance Cambodia PLC

Woori Finance Myanmar

Wealth Development Bank

Woori Bank Vietnam Ltd

WB Finance

100%

100%

100%

79.9%

100%

100%

100%

100%

51%

100%

100%

100%

11 companies

(Source: WRB’s 2018 3Q Quarterly Report)

Woori Card (“WC”) is a credit card company with asset size, revenue and net income of $9.0 billion, 

$1.3 billion and $83.0 million, respectively, as of December 31, 2017. 

Woori Investment Bank (“WIB”) provides corporate customers with various financial services and 

retail customers with asset management. WIB’s financial products include CMA, Issuance of Bill, 

Repurchase Agreements, Commercial Paper, Corporate Bond and Beneficiary Certificate. As of 

December 31, 2017, WIB’s asset size, revenue and net income were $2.5 billion, $152.9 million and 

$26.8 million, respectively.

 

1 Source: WRB’s 2018 3Q Quarterly Report
WRB 165(d) Reduced Resolution Plan 5 Public Section

Woori FIS (“WFIS”) is an IT shared service center which integrates and manages the IT systems of 

WRB and its subsidiaries. It provides various IT services which include developing, operating and 

managing IT business and other relevant systems. As of December 31, 2017, WFIS’s asset size, 

revenue and net income were $74.6 million, $187.0 million and -$10.0 million, respectively.

Woori Finance Research Institute (“WFRI”) functions as a think tank of WRB by providing consulting 

services regarding strategies for WRB’s subsidiaries and by supporting the decision making process 

of top management. As of December 31, 2017, WFRI’s asset size, revenue and net income were $4.3 

million, $3.9 million and $0.4 million, respectively.

Woori Credit Information (“WCI”), a member of American Collection Agency (“ACA”), was 

established as the first Korean company specialized in debt collection. As of December 31, 2017, 

WCI’s asset size, revenue and net income were $32.2 million, $25.1 million and $1.0 million, 

respectively.

Woori Fund Service (“WFS”) provides fund accounting service including computation of reference 

prices for collective investment vehicles and other administration services for REITs. As of December 

31, 2017, WFS’s asset size, revenue and net income were $12.9 million, $7.0 million and $0.4 million, 

respectively.

Woori PE (“WPE”) is one of the leading private equity fund operators in Korea. WPE specializes in 

investments such as corporate restructuring and M&A. As of December 31, 2017, WPE’s asset size,

revenue and net income were $37.7 million, $1.2 million and -$1.8 million, respectively. 

Korea BTL Infrastructure Fund (“KBTLIF”) was established on May, 2006 in accordance with the Act 

on Business of Operating Indirect Investment and Assets and Act on Private Investment in 

Infrastructure. KBTLIF is engaged in the business of corporate investments and intends to conduct 

private investments in infrastructure projects in accordance with the Act on Private Investment in 

Infrastructure As of December 31, 2017, KBTLIF’s asset size, revenue and net income were $728.3 

million, $20.9 million, and $18.3 million, respectively.

In addition to domestic subsidiaries, WRB also includes 11 global subsidiaries within its consolidation 

scope. Such global subsidiaries include the following entities.

Woori America Bank (“WAB”) operates 19 branches and 3 loan offices in the United States, providing 

various banking services including remittances and trade finance through existing banking networks

of WRB. As of December 31, 2017, WAB’s asset size, revenue and net income were $1.8 billion, 

$71.7 million and $9.8 million, respectively.

Woori Bank China, Ltd. (“WBC”) was established in November, 2007 as the first Korean bank in China, 

and is currently operating 22 branches. As of December 31, 2017, WBC’s asset size, revenue and net 

income were $4.9 billion, $318.0 million and $14.6 million, respectively.

PT Bank Woori Saudara Indonesia 1906 Tbk (“Bank WSI”) was launched as a merged bank after a 

completion of merger between Indonesia Woori Bank and Saudara Bank in 2014. As of December 31, 

2017, Bank WSI’s asset size, revenue and net income were $2.1 billion, $135.4 million and $27.6

million, respectively.
WRB 165(d) Reduced Resolution Plan 6 Public Section

Woori Global Market Asia Limited (“WGMA”), established in 2006, is engaged in investment banking 

business in Hong Kong. As of December 31, 2017, WGMA’s asset size, revenue and net income were 

$420.6 million, $11.5 million and $14.6 million, respectively.

Zao Woori Bank (“ZWB”) is engaged in loans and deposits service, as well as foreign exchange service 

such as money exchange, trade finance, remittance, etc. As of December 31, 2017, ZWB’s asset size, 

revenue and net income were $273.6 million, $13.1 million and $3.6 million, respectively.

Woori Brazil Bank (“WBB”) started its business in 2012 by initially targeting Korean-Brazilian 

businesses and expatriates residing in Brazil, and has gradually expanded its products and services 

for local businesses. As of December 31, 2017, WBB’s asset size, revenue and net income were 

$129.2 million, $9.9 million and $3.6 million, respectively.

Woori Finance Cambodia Plc (“WFC”) was established after WRB’s acquisition of Malis Finance Ltd. 

during 2014 and is engaged in micro finance business in Cambodia. As of December 31, 2017, WFC’s 

asset size, revenue and net income were $77.5 million, $7.3 million and $2.0 million, respectively.

Woori Finance Myanmar (“WFM”) was incorporated as WRB’s local subsidiary after receiving 

approval from Myanmar authorities to set up a microfinance company in September, 2015. As of 

December 31, 2017, WFM’s asset size, revenue and net income were $17.3 million, $2.3 million and 

-$1.4 million, respectively.

Wealth Development Bank (“WDB”) was established in Philippines after WRB’s acquisition 51% of 

Wealth Development Bank Corp’s shares. In addition, Viscal Group whose main business is Retail 

business has 49% of shares. WRB plans to expand retail banking business in Philippines with Viscal 

Group. As of December 31, 2017, WDB’s asset size, revenue and net income were $77.5 million, $7.3 

million and $2.0 million, respectively.

Woori Bank Vietnam (“WBV”) was started its business in January 2017 after receiving approval from 

State Bank of Vietnam authorities in November 2016. Although WRB had been operating branches in 

Hanoi and Ho Chi Minh, established WBV to expand retail banking business. As of December 31, 

2017, WBV’s asset size, revenue and net income were $995.3 million, $33.8 million and $7.2 million, 

respectively.

WB Finance (“WBF”) was incorporated as WRB’s local subsidiary after WRB’s acquisition of 

VisionFund Cambodia in June 2018 and changed its name to WB Finance Co., LTD. Based on about 

230,000 number of customers and 106 networks throughout Cambodia, WBF has been planning to 

expand loan and deposit service for retail customer. As of December 31, 2017, WBF’s asset size, 

revenue and net income were $235.1 million, $11.1 million and $0.3 million, respectively.

U.S. Operations

WRB is headquartered in Seoul, Korea and maintains an agency, Woori Bank New York Agency 

located in New York, New York, a branch, Woori Bank Los Angeles Branch, located in Los Angeles, 

California and a retail subsidiary, Woori America Bank, located in New York, New York, with branches 

across the U.S.
WRB 165(d) Reduced Resolution Plan 7 Public Section

The principal activities of the U.S. operations of WRB are providing trade financing, letters of credit, 

local currency funding and corporate loans for Korean companies operating in the U.S. market as 

well as individual customers. U.S. operations of WRB are conducted primarily through the below 

three entities: 

• Woori Bank New York Agency (“WBNYA”)

• Woori Bank Los Angeles Branch (“WBLAB”)

• Woori America Bank (“WAB”)

Exhibit 1.2-2: WRB U.S. Operations by Legal Entity

(Source: WRB Management as of November, 2018) 

WBNYA, an agency of WRB, operates under a license granted by the New York State Department of 

Financial Services (“NYSDFS”). WBLAB, a branch of WRB, operates under the license granted by the 

California Department of Business Oversight (“DBO”). Both WBNYA and WBLAB are engaged in

corporate banking business such as buying, selling, paying and collecting of bills, issuing letters of 

credit and granting loans primarily to subsidiaries of Korea-based companies that operate in the U.S.

market.

WAB, a wholly owned subsidiary of WRB, was chartered under the laws of the State of New York and 

operates under the license granted by NYSDFS. WAB specializes in Korean community-oriented retail 

banking business for both SMEs and individual customers by primarily providing loans and 

remittance services. As of reporting date, WAB conducts its 19 branches located in the following 

states: New York (5), New Jersey (4), Pennsylvania (1), Maryland (1), Virginia (2) and California (6) 

and three loan production offices located in the following states: Georgia (1), California (1), Texas (1). 

United States of

America

South Korea

Woori Bank

Manhattan Branch

Woodside Branch

Flushing Branch

Bayside Branch

Northern Branch

Fort Lee Branch

Palisides Park Branch

Ridgefield Branch

Closter Branch

Elkins Park Branch

Annandale Branch

Centreville Branch

Ellicott City Branch

Olympic Branch

Wilshire Branch

Fullerton Branch

Garden Groove Branch

Irvine Branch

Torrance Branch

San Jose Loan Production Office

Georgia Loan Production Office

Dallas Loan Production Office

Woori Bank

Los Angeles Branch

Woori Bank

New York Agency

Woori America Bank
WRB 165(d) Reduced Resolution Plan 8 Public Section

2. Material Entities

Under the Regulation, a “Material Entity” is a subsidiary or foreign office of the Covered Company

that is significant to the activities of a “Core Business Line” or a “Critical Operation”. Core Business 

Lines are those business lines, including associated operations, services, functions and support that, 

in the Covered Company’s view, upon failure would result in a material loss of revenue, profit or 

franchise value of the Covered Company. Critical Operations are those operations, including 

associated services, functions and support, the failure or discontinuance of which would pose a 

threat to the financial stability of the U.S.

WRB has determined that it has no Core Business Lines based on analysis performed on a 

quantitative as well as a qualitative basis. On the quantitative basis, the percentage contribution of 

each business line in the U.S. to the total consolidated financials was insignificant. On a qualitative 

basis, failure of WRB’s U.S. operations would not have a material effect on the overall franchise 

value of WRB.

WRB has also determined that it has no Critical Operations. The relatively limited scope, nature, and 

volume of WRB’s U.S. operations indicate that their failure or discontinuance would not pose a 

threat to the stability of the U.S. financial system. 

As none of the businesses that WRB conducts in the U.S. have been determined as a Core Business 

Line or a Critical Operation, WRB has identified no Material Entity for purposes of this Resolution 

Plan.

3. Core Business Lines

As noted above, for purposes of this Resolution Plan, WRB has identified no Core Business Lines. 

None of the business lines, conducted within the U.S. operations of WRB, are significant enough that 

its failure would result in a material loss of revenue, profit or franchise value of WRB. In terms of 

quantitative aspects, WRB has compared the percentage contribution of each U.S. business line to 

its total consolidated financials on the basis of revenue, net income and total assets for the period 

January 1, 2017 through December 31, 2017. In addition, a qualitative analysis was used to 

determine whether the business lines operating in the U.S. would have a material effect on the 

overall franchise value of WRB. 

On a quantitative basis, the percentage contribution of each business in the U.S., on the basis of 

total assets, revenue and net income was less than 5%, which did not meet the threshold for 

quantitative significance

On a qualitative basis, WRB’s U.S. operations are not significant to the overall franchise value of 

WRB. As a result, WRB has determined that none of the business lines should be considered a Core 

Business Line that are conducted in whole or material part in the U.S. and the failure of which would 

result in a material loss of revenue, profit or franchise value to WRB.
WRB 165(d) Reduced Resolution Plan 9 Public Section

4. Financial Information 

The following exhibit is a summary of WRB’s consolidated balance sheet and income statement as of 

December 31, 2017, prepared under K-IFRS 2

. Please refer to WRB’s K-IFRS Audited Financial 

Statements as of December 31, 2017 for further details. The exchange rate used to prepare this 

financial information is based on the noon buying rate of the FRB, New York of Korean Won in effect 

as of December 31, 2017, which was ₩1,067.4 = U.S. $1.00

4.1 Financial Statements

Exhibit 4.1-2: WRB and Subsidiaries Consolidated Balance Sheet

(in US$ thousands)

Dec-31-2017

Assets 

Cash and cash equivalents 6,471,947 

Financial assets at fair value through profit or loss 5,474,019 

Available-for-sale financial assets 14,383,232 

Held-to-maturity financial assets 15,691,383 

Loans and receivables 250,235,337 

Investments in joint ventures and associates 390,709 

Investments properties 347,849 

Premises and equipment 2,321,059 

Intangible assets and goodwill 485,844 

Assets held for sale 45,553 

Current tax assets 4,424 

Deferred tax assets 262,436 

Derivative assets 55,529 

Other assets 148,399 

Total assets 296,317,720

Liabilities

Financial liabilities at fair value through profit or loss 3,211,397 

Deposits due to customers 219,871,357 

Borrowings 13,850,880 

Debentures 26,109,358 

Provisions 384,544 

Net defined benefit liability 40,531 

Current tax liabilities 217,909 

Deferred tax liabilities 21,249 

Derivative liabilities 63,475 

 

2 K-IFRS stands for Korean International Financial Reporting Standards. 
WRB 165(d) Reduced Resolution Plan 10 Public Section

Other financial liabilities 13,014,991 

Other liabilities 266,041 

Total liabilities 277,051,732 

Equity

Owners' equity: 19,079,549 

 Capital stock 3,167,818 

 Hybrid securities 2,827,273 

 Capital surplus 267,824 

 Other equity -1,816,787

 Retained earnings 14,633,421 

Non-controlling interest 186,439 

Total equity 19,265,988 

Total liabilities and equity 296,317,720 

(Source: FY 2017 K-IFRS Audited Consolidated Financial Statements of WRB)

Exhibit 4.1-3: WRB and Subsidiaries Consolidated Income Statement

(in US$ thousands)

Dec-31-2017

Interest income 8,010,611

Interest expense -3,119,707

Net interest income 4,890,904 

Fees and commissions income 1,938,504

Fees and commissions expense -935,651

Net fees and commissions income 1,002,853

Dividend income 117,097

Net loss on financial instruments at fair value through profit or loss -98,206

Net gain on available-for-sale financial assets 180,536

Impairment losses due to credit loss -735,543

General and administrative expenses -3,307,789

Net other operating expenses -29,334

Operating income 2,020,518

Share of losses of joint ventures and associates -95,102

Other net non-operating loss -99,044

Non-operating loss -194,146

Net income before income tax expense 1,826,372

Income tax expense -392,927

Net Income from continuing operations 1,433,445
WRB 165(d) Reduced Resolution Plan 11 Public Section

Net Income (loss) from discontinued operations -

Net income 1,433,445

Remeasurement of the net defined benefit liability 9,834

Loss on available-for-sale financial assets -79,161

Share of other comprehensive income of joint venture and associates 574

Gain on foreign currencies translation of foreign operations -195,171

Gain on valuation of cash flow hedge 728

Equity related to assets held for sale 3,883

Other comprehensive loss, net of tax -259,313

Total comprehensive income 1,174,132

Net income attributable to:

 Net income attributable to owners 1,416,638

 Net income attributable to non-controlling interests 16,807

Total comprehensive income attributable to:

 Comprehensive income attributable to owners 1,170,164

 Comprehensive income attributable to non-controlling interests 3,969 

Basic earnings per share 1.87

Diluted earnings per share 1.87

(Source: FY 2017 K-IFRS Audited Consolidated Financial Statements of WRB)

4.2 Capital Adequacy

WRB complies with the standard of capital adequacy provided by financial regulatory authorities. 

The capital adequacy ratio is based on Basel III of Basel Committee on Banking Supervision and Basel 

III was applied from the end of December, 2013. The capital adequacy ratio is calculated by dividing 

own capital by asset (weighted with a risk premium – risk weighted assets) based on the 

consolidated financial statements of WRB. WRB is required to maintain a minimum Common Equity 

Tier 1 ratio of at least 6.25%, a minimum Tier 1 ratio of 7.75% and a minimum Total Regulatory 

Capital of 9.75% as of December 31, 2017.

3

As of December 31, 2017, WRB’s consolidated capital ratios, as computed under the Basel III 

guidelines, were maintained at a high level, with a Tier 1 Capital Ratio of 13.03%4 and a Total Capital 

Adequacy Ratio of 15.4%5

.

WBNYA and WBLAB are not subject to the capital adequacy requirement as they are agency and 

branch of WRB. WAB has maintained Tier 1 Capital Ratio (risk-weighted) of 17.92% and Total Capital 

Ratio of 18.97%, as of December 31, 2017.

6

 

3 Source : FY 2017 K-IFRS Audited Consolidated Financial Statements of WRB 4 Source : FY 2017 K-IFRS Audited Consolidated Financial Statements of WRB 5 Source : FY 2017 K-IFRS Audited Consolidated Financial Statements of WRB 6 Source : FY 2017 USGAAP Audited Consolidated Financial Statement of WAB
WRB 165(d) Reduced Resolution Plan 12 Public Section

4.3 Major Source of Funds

WRB obtains funding from various sources, both domestic and foreign. WRB’s principal source of 

funding is customer deposits, which totaled to $219.9 billion as of December 31, 2017.

7

WRB also acquires funding through the following sources:8

 Short-term borrowings, including bills sold, call money,

 Long-term debts, including issuance of debentures,

 Borrowings in local currency from the Bank of Korea and government-affiliated entities,

 Borrowings in foreign currencies from The Export-Import Bank of Korea and foreign 

financial institutions, and

 Issuance of hybrid equity securities.

WBNYA and WBLAB primarily obtain funding from local and international financial institutions but 

inter-office funding from the WRB is also other major source of funds. WAB is self-funded through its 

retail customers’ deposits and borrowings.

4.4 Liquidity Risk Management 

Liquidity risk management is to prevent potential cash shortage as a result of mismatching the use of 

funds (assets) and source of funds (liabilities) or unexpected cash outflows. Of the financial liabilities 

on the consolidated statements of financial position, financial liabilities in relation to liquidity risk 

become the objects of liquidity risk management. Derivatives are excluded from those financial 

liabilities as they reflect expected cash flows for a pre-determined period.

Assets and Liabilities are grouped by account under Asset Liability Management (“ALM”) in 

accordance with the characteristics of the account. WRB manages liquidity risk by identifying the 

maturity gap and such gap ratio through various cash flows analyses (i.e. based on remaining 

maturity and contract period, etc.), while maintaining the gap ratio at or below the target limit.

Each of WRB’s subsidiaries’ Risk Management Committees establishes liquidity policies and monitors 

liquidity on an on-going basis. The subsidiaries make constant adjustments to take into account the 

variables affecting their liquidity levels. The subsidiaries’ Risk Management Committees review the 

uses and sources of funds on a daily basis, taking into consideration the various goals of their 

respective business units.

In managing liquidity risk, each of WRB’s subsidiaries determines gap limits, implements those limits 

and monitors maturity gaps using its asset and liability management system. WRB also has in place 

group-wide gap limits for liquidity management purposes.

5. Derivatives and Hedging Activities

WRB offers derivatives products and engages in derivatives trading, mostly for corporate customers, 

including:

 

7 Source : FY 2017 K-IFRS Audited Consolidated Financial Statement of WRB 8 Source : FY 2017 K-IFRS Audited Consolidated Financial Statement of WRB
WRB 165(d) Reduced Resolution Plan 13 Public Section

 Interest rate swaps, options and futures, relating principally to Korean Won interest rate 

risks,

 Index futures and options, relating to stock market fluctuations,

 Cross currency swaps, relating to foreign exchange risks, largely for Korean Won against U.S. 

Dollar,

 Foreign exchange forwards, swaps, options and futures, relating to foreign exchange risks,

 Commodity derivatives and

 Credit derivatives.

At the inception of a hedge relationship, WRB documents the relationship between the hedging 

instrument and the hedged item, along with its risk management objectives and its strategy for 

undertaking various hedge transactions. Furthermore, at the inception of the hedge and on an 

ongoing basis, WRB documents whether the hedging instrument is highly effective in offsetting 

changes in fair values or cash flows of the hedged item.

WRB’s derivatives operations focus on addressing the needs of the corporate customers to hedge 

their risk exposure and on hedging its risk exposure resulting from such customers’ contracts. WRB 

also engages in derivatives trading activities to hedge the interest rate and foreign currency risk 

exposure that arises from its own assets and liabilities positions. 

WRB’s U.S. operations do not engage in trading and derivatives transactions for market-making and 

arbitraging purposes. As part of asset and liabilities management WBNYA have previously entered

into swap contracts to reduce its exposure to unfavorable changes in market prices. However, as of 

December 31, 2017, there were no outstanding interest rate swaps or currency swaps for WBNYA.

As of December 31, 2017, there were no outstanding interest rate swaps or currency swaps for 

WBLAB. WAB’s core business is predominately retail banking and as such, does not perform any 

trading and derivatives activities. Therefore, as of December 31, 2017, it does not practice booking 

of trading and derivatives activities.

6. Memberships in Payment, Clearing and Settlement Systems

WRB’s U.S. operations hold memberships in financial market utilities (“FMUs”) for payment, clearing,

and settlement services, in order to conduct essential financial transactions.

The following Exhibit 6-1 includes the list of FMUs in which WRB’s U.S. operations hold memberships:

Exhibit 6-4: Financial Market Utilities for Payment, Clearing and Settlements by U.S. Legal Entity

Entity Holding 

Membership System Description

WBNYA

Federal Reserve Funds Transfer System -

Fedwire Securities Service / Fedwire Funds 

Service

U.S. Dollar Payment System / U.S. Clearing 

Securities Settlement / FI Depository

Society for Worldwide Interbank Financial 

Telecommunications - SWIFT Alliance

Interbank Financial Telecommunication

WBLAB

Federal Reserve Funds Transfer System -

Fedwire Securities Service / Fedwire Funds 

Service

U.S. Dollar Payment System / U.S. Clearing 

Securities Settlement / FI Depository

Wells Fargo Funds Transfer System - Wells 

Fargo CEO Securities Service / Wells Fargo 

U.S. Dollar Payment System / U.S. Clearing 

Securities Settlement / FI Depository
WRB 165(d) Reduced Resolution Plan 14 Public Section

Entity Holding 

Membership System Description

CEO Service

Society for Worldwide Interbank Financial 

Telecommunications - SWIFT Alliance

Interbank Financial Telecommunication

WAB

ACCEL The Exchange Network - FISERV ATM Network

Electronics Payments Network USD Payment System. Part of ACH. NACHA 

and ACH are memberships.

Federal Reserve Check Clearing System Nationwide Check Clearing House

Federal Reserve Funds Transfer System -

Fedwire Securities Service / Fedwire Funds 

Service

U.S. Dollar Payment System / U.S. Clearing 

Securities Settlement / FI Depository

NYCE Corporation ATM Network

Society for Worldwide Interbank Financial 

Telecommunications - SWIFT Alliance

Interbank Financial Telecommunication

VISA Check Card USD Payment System

Part of visa check clearing

(Source: WBNYA, WBLAB and WAB as of November 2018) 

7. Description of Foreign Operations

WRB operates a network of 878 domestic branches, as well as 301 overseas networks in 25 countries 

around the world.

9 The principal activities of the overseas agencies, branches and subsidiaries of 

WRB are providing trade financing, letters of credit, local currency funding, and corporate loans to

Korean-based companies as well as individual customers, and providing foreign exchange services in 

conjunction with WRB.

The summary of financials as of December 31, 2017 is as follows:

Exhibit 7-5: U.S. and Non U.S. Financial Information (in US$ millions)

Geographic Area Total Assets Revenue Net Income

U.S. $4,711 $139 $26

Non U.S. 

(Including Korea)

$296,318 $10,229 $1,433

(Source: FY 2017 Audit Reports of WBNYA, WBLAB and WAB under U.S.GAAP and WRB under K-IFRS) 

8. Supervisory & Regulatory Authorities

WRB, including its subsidiaries and overseas operations, is subject to supervision and regulation 

under the applicable laws and regulations of the countries in which it operates.

WRB is supervised by the Financial Supervisory Service (“FSS”) and regulated by the Financial 

Services Commission (“FSC”) of Korea. Following FSC’s instructions and directives, FSS supervises and 

examines domestic banks and their subsidiaries. In particular, FSS sets requirements relating to 

domestic banks’ liquidity and capital adequacy ratios and establishes reporting requirements within

the authority delegated under FSC regulations. WRB’s operations in the U.S. are subject to various

regulatory regimes. WBNYA is licensed by the state banking authority of the State of New York, and 

is therefore subject to regulation and examination by NYSDFS and FRB. WBLAB operates in the State 

 

9 FY 2016 3Q Quarterly Report of WRB
WRB 165(d) Reduced Resolution Plan 15 Public Section

of California under the license granted by DBO, and it is subject to regulatory examination by DBO

and FRB. WAB is regulated by NYSDFS, as its chartering authority, and also is regulated by FDIC as its 

primary federal banking regulator and as the insurer of its deposits. 

9. Principal Officers of Woori Bank

Exhibit 9-6: WRB Board of Directors

Name Title Function

Tae-Seung Sohn President & Chief Executive Officer Standing Director

Jung-Sik Oh Standing Audit Committee Member Standing Auditor

Sung-Tae Ro Member Outside Director

Chan-Hyoung Chung Member Outside Director

Sang-Yong Park Member Outside Director

Zhiping Tian Member Outside Director

Dong-Woo Chang Member Outside Director

Chang-Sik Bae Member Outside Director

(Source: WRB Management as of December, 2018)

In addition to the standing director who is also WRB’s Chief Executive Officer, WRB currently has the 

following nine executive officers.

Exhibit 9-7: WRB Executive Officers 

Name Title Function

Chai Pon Cheong Head of Unit, Executive Vice President Business Promotion Unit, Retail 

Banking Business Group

Jeong Ki Kim Head of Unit, Executive Vice President Business Support Unit, Human 

Resources Group

Tae Joong Ha Head of Group, Executive Vice President Corporate Banking Business Group

Jong In Lee Head of Group, Executive Vice President Risk Management Group

Won Duk Lee Head of Group, Executive Vice President Management & Finance Planning 

Group

Jong Suk Jeong Head of Group, Deputy Executive Vice President Wealth Management Group

Hong Sik Choi Head of Group, Deputy Executive Vice President Institutional Banking Business Group

Myung Hyuk Shin Head of Group, Deputy Executive Vice President Small & Medium Corporate Business 

Group

Jong Deuk Kim Head of Group, Deputy Executive Vice President Financial Market Business Group

Hwa Jae Park Head of Group, Deputy Executive Vice President Credit Support Group

Su Hyeong Cho Head of Group, Deputy Executive Vice President Consumer & Brand Group

(Source: WRB Management as of December, 2018)

 

10 FY 2018 3Q Quarterly Report of WRB

The Board of Directors (“BOD”) support and monitor WRB’s strategic decision-making and overall 

business affairs on a regular basis. WRB’s BOD is currently comprised one standing director, one 

standing auditor, five outside directors and one non-standing director, each of whom were 

appointed to increase the relevant expertise and independence of the Board.10
WRB 165(d) Reduced Resolution Plan 16 Public Section

10. Resolution Planning Corporate Governance Structure and Processes

WRB has integrated the resolution planning into its corporate governance structure and process to 

ensure that the Resolution Plan receives appropriate oversight from the U.S. Business Approvers

consisting of designated Senior Management officials, the Office of the U.S. Resolution Planning 

(“OUSRP”), the Global Business Support Department (“GBSD”) and BOD. In the resolution planning 

process, OUSRP prepares the Resolution Plan with oversight from GBSD. Then, GBSD reviews the 

Resolution Plan and submits it to BOD, as well as a delegee acting under the express authority of the 

BOD, for final approval.

In order to provide timely, credible and complete responses to supervisory resolution planning 

initiatives, WRB has established a governance framework both the WRB level and at the U.S. 

operations level to ensure that all aspects of the Resolution Plan receive appropriate attentions from 

all related parties. The primary objective of the framework is to establish a comprehensive 

governance and management process to oversee the preparation and maintenance of the 

Resolution Plan required to be filed by WRB pursuant to the Regulation.

OUSRP was established as a working group within the U.S. with responsibilities including providing

day-to-day project management and functions for development, maintenance, implementation and 

updating the Resolution Plan as part of “business as usual” processes.

GBSD is an existing department responsible for oversight of U.S. resolution planning process and the 

Resolution Plan submitted to WRB’s BOD (or its delegee) for final approval. GBSD provides review of 

the Resolution Plan and advises OUSRP on all issues relating to the Plan.

The Resolution Plan is evaluated and approved by BOD (or the delegee) in accordance with the 

requirements of the Regulation.

11. Management Information Systems

WRB utilizes management information systems and applications to ensure timely access to accurate 

and comprehensive data, including those for regulatory reporting, risk management, financial 

management and operating. These systems include applications to conduct business activities across 

all financial products and to generate accounting, financial, operations, regulatory and risk 

management reports. Systems and applications are essential for effective operations and are 

managed through a business continuity approach. Some of the systems and applications are directly 

purchased from third-party vendors while others have been developed internally and are 

supplemented with third-party vendors. 

The U.S. operations utilized multiple systems, management information reports and policies to aid in 

the preparation of the Resolution Plan. In general, information of a descriptive or qualitative nature 

was solicited through meetings with each department head or representative. The quantitative data 

was mainly derived from key internal and external reports. 

12. High-Level Resolution Strategy Summary

As required by the Regulation, WRB has assumed that the resolution strategy for its U.S. operations 

in the event of a material financial distress or failure of WRB would be to pursue an orderly 
WRB 165(d) Reduced Resolution Plan 17 Public Section

liquidation of WRB’s U.S. assets within its U.S. agency, branch and subsidiary. WRB’s key 

assumptions for the purpose of this Resolution Plan are as follows:

- An idiosyncratic event causes the failure of one or more major branches and subsidiaries of 

WRB, leading to material financial distress and the ultimate failure of WRB;

- There is no extraordinary government support available to WRB in the U.S. or in Korea that 

would affect the U.S. operations of WRB.

WBNYA operates under a license granted by the NYSDFS and is also subject to examination by and 

reporting to FRB. In resolution, WBNYA would be subject to a resolution process overseen by the 

Superintendent of NYSDFS, subject to Article 13 of the New York Banking Law. 

WBLAB operates under a license granted by DBO and is also subject to examination by and reporting 

to FRB. In resolution, WBLAB would be resolved by the Commissioner of DBO under the California 

Financial Code. 

WAB is an insured depository institution, and therefore, would be resolved under the Federal 

Deposit Insurance Act (“FDIA”) administered by FDIC. As the receiver under FDIA, FDIC would 

assume all the rights and powers of WAB’s Board of Directors, management and shareholders to 

operate the business, dispose of operations and assets, and resolve liabilities.