Resolution Plan 1 | Page

U.S. Section 165(d) Full Resolution Plan

Public Section

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

about Korea Development Bank (“KDB Bank”)’s 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 KDB Bank undertakes no obligation to update publicly any of them in light of 

new information or future events.
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Table of Contents

a. Public Section.............................................................................................................................................................2

a.1 Introduction.............................................................................................................................................................2

a.2 Overview of KDB Bank .............................................................................................................................................3

a.2.1 KDB Capital .......................................................................................................................................................3

a.2.2 KDB Infrastructure Investment Asset Management ........................................................................................3

a.2.3 KDB Investment................................................................................................................................................3

a.2.4 U.S. Operations.................................................................................................................................................4

a.3 Summary of the Resolution Plan .............................................................................................................................4

a.3.1 Overview of U.S. Resolution Plan .....................................................................................................................4

a.3.2 Names of Material Entities...............................................................................................................................4

a.3.3 Description of Core Business Lines...................................................................................................................5

a.4 Summary of Financial Information Regarding Assets, Liabilities, Capital and Major Funding Sources...................5

a.4.1 Capital Adequacy..............................................................................................................................................6

a.4.2 Major Funding Sources.....................................................................................................................................6

a.4.2.1 Liquidity Risk Management.......................................................................................................................7

a.4.3 Description of Derivatives and Hedging Activities............................................................................................7

a.4.4 Memberships in Material Payment, Clearing, and Settlement Systems..........................................................7

a.5 Description of Foreign Operations...........................................................................................................................8

a.6 Material Supervisory Authorities.............................................................................................................................8

a.7 Principal Officers......................................................................................................................................................9

a.8 Resolution Planning Corporate Governance Structure and Processes....................................................................9

a.9 Material Management Information Systems.........................................................................................................10

a.10 High-Level Description of Resolution Strategy ....................................................................................................10

a. Public Section

a.1 Introduction

Korea Development Bank (“KDB Bank”) is a foreign banking organization duly organized and existing under 

the laws of Korea. KDB Bank has a New York state-licensed branch (“KDB NY”) in New York City. This 

resolution plan (the “U.S. Resolution Plan”) is being filed by KDB Bank pursuant to Section 165(d) of the 

Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Dodd-Frank Act”) and implementing 

regulations issued by the Federal Reserve Board (“FRB”) (12 C.F.R. Part 243) and the Federal Deposit 

Insurance Corporation (the “FDIC”) (12 C.F.R. Part 381) (collectively, the “Resolution Plan Rule”).

Section 165(d) of the Dodd-Frank Act and the Resolution Plan Rule 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 

(the “IBA”) (12 U.S.C. §§3101 et seq.) and that has $250 billion or more in total consolidated assets to

submit, on a timeframe specified by the Resolution Plan Rule, a plan for the rapid and orderly resolution 

of the U.S. operations of a “covered company” in the event of material financial distress or failure. 

KDB Bank is treated as a bank holding company under Section 8(a) of the IBA because it maintains a branch 

office in the United States. Accordingly, KDB Bank is a covered company and is required to file a U.S. 

Resolution Plan under Section 165(d) and the Resolution Plan Rule. KDB Bank (formerly KDB Financial 

Group Inc.) submitted its first resolution plan to the FRB and the FDIC on December 24, 2013. Under the 

Resolution Plan Rule as amended in 2019, KDB Bank has determined that it is a “triennial reduced filer”. 
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Triennial reduced filers must submit a “reduced resolution plan” every three years, beginning as of July 1, 

2022. However, because KDB Bank became a covered company and a triennial reduced filer after 

December 31, 2019, it is required to file a “full resolution plan” by July 1, 2022 for its initial plan as a 

triennial reduced filer. 

This Public Section of the U.S. Resolution Plan provides an executive summary of KDB Bank’s overall 

resolution strategy. All financial and other information included in this U.S. Resolution Plan are, unless 

otherwise indicated, reported on a consolidated basis under International Financial Reporting Standards 

as adopted in Korea (“K-IFRS”), in Korean won and as of December 31, 2021, KDB Bank’s fiscal year-end. 

a.2 Overview of KDB Bank

KDB Bank, the covered company, was established on April 1, 1954 as a government-owned financial 

institution pursuant to the Korea Development Bank Act (the “KDB Act”), as amended. Since its 

establishment, KDB Bank has been the leading bank in Korea with respect to the provision of long-term 

financing for projects designed to assist the nation’s economic growth and development. The Korean 

government owns all of its paid-in-capital. KDB Bank is located at 14 Eunhaeng-ro, Yeongdeungpo-gu, 

Seoul, Korea.

KDB Bank’s primary business activities include: (a) corporate banking and restructuring; (b) investment 

banking; and (c) alternative investments. For corporate banking and restructuring, KDB Bank provides 

loans and trade finance for corporate clients and plays a crucial role in the corporate restructuring of 

businesses in Korea. Investment banking’s primary services are corporate funding, advisory, mergers and 

acquisitions, and derivative and FX trading. Alternative investments include project finance and private 

equity businesses.

a.2.1 KDB Capital

KDB Capital Corporation (“KDB Capital”) was established on December 16, 1972 to engage in leasing 

industrial machinery, equipment, aircraft, ships and automobiles, and investing as well as providing 

financing services to venture companies. The head office is located in Seoul, Korea.

a.2.2 KDB Infrastructure Investment Asset Management

KDB Infrastructure Investment Asset Management Co., Ltd. (“KIAMCO”) was established on October 28, 

2003 to engage in establishing funds and investing in alternative assets such as infrastructure, power plant, 

energy, transportation, etc. The head office is located in Seoul, Korea.

a.2.3 KDB Investment

KDB Investment Co., Ltd. (“KDB Investment”) is a private equity firm that was established on April 26, 2019 

to establish funds and invest in companies and industries that call for business reform or capital 

restructuring. The head office is located in Seoul, Korea.

The following chart sets forth KDB’s major subsidiaries as of December 31, 2021.
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a.2.4 U.S. Operations

KDB Bank operates in the United States primarily through KDB NY. In 2021, KDB Bank established a new 

subsidiary (KDB Silicon Valley LLC) (“KDB Silicon Valley”), a Delaware corporation located in Mountain 

View, California, to focus on investing in emerging companies and venture capital funds. 

KDB Capital, KIAMCO and KDB Investment do not maintain any operations in the United States.

In December 2020, the FRB approved KDB Bank to become a financial holding company, pursuant to the Bank

Holding Company Act and FRB's Regulation Y.

a.3 Summary of the Resolution Plan

a.3.1 Overview of U.S. Resolution Plan

At the time of submission of this U.S. Resolution Plan, KDB Bank’s limited operations in the United States 

were housed primarily in KDB NY. KDB Bank’s U.S. Resolution Plan is intended to provide the FRB and the 

FDIC with an explanation of KDB Bank’s plan for the rapid and orderly resolution of its U.S. operations in 

the event of the material financial distress or failure of the covered company. It contains the information 

required by the Resolution Plan Rule, including a description of KDB Bank’s U.S. operations and 

information about any core business lines, identified critical operations, and material entities.

a.3.2 Names of Material Entities

Under the Resolution Plan Rule, a “material entity” is defined as a “subsidiary or foreign office of the 

covered company that is significant to the activities of an identified critical operation or core business line 

or is financially or operationally significant to the resolution of the covered company.” “Identified critical 

operations” are those operations (as identified by the covered company or FRB and FDIC), including 

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

the financial stability of the United States. “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. 

KDB Bank has determined that it does not have any critical operations that, upon their failure or 

discontinuance, would pose a threat to the financial stability of the United States; KDB Bank’s operations 

KDB Capital KIAMCO KDB Investment

99.9% 84.2% 100.0%

- Lease

- Loans, Credit Cards

- Venture Investments

- IB businesses

- SOC infrastructure Investment - Private Equity Firm

- Alternative investments

 (e.g. power generation/energy,

 natural resources development)
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in the United States have a relatively limited scope, nature and volume. The FRB and the FDIC also have 

not designated any operations of KDB Bank as critical operations. 

KDB Bank also has determined that it has no core business lines in the United States based on an analysis 

performed on a quantitative as well as a qualitative basis. 

KDB Bank also has not identified any “material entities” for purposes of this U.S. Resolution Plan. As 

previously discussed, KDB Bank has no identified critical operations or core business lines, and as follows 

from the discussion above, its U.S. operations would not be financially or operationally significant to the 

resolution of KDB Bank.

a.3.3 Description of Core Business Lines

Pursuant to KDB Bank’s qualitative and quantitative analyses, KDB Bank has identified no core business 

lines for purposes of the U.S. Resolution Plan. 

a.4 Summary of Financial Information Regarding Assets, Liabilities, Capital and Major Funding 

Sources

The following table is a summary of KDB Bank’s audited consolidated financial information under K-IFRS 

as of December 31, 2021. 

In millions of won

As of December 

31, 2021

Assets

Cash and due from banks 11,853,364

Financial assets held for trading 11,738,330

Financial assets designated at fair value through profit or 

loss 39,064,390

Available-for-sale financial assets 6,203,858

Held-to-maturity financial assets 644,412

Loans 179,182,355

Derivative financial assets 5,101,962

Investments in associates 31,548,070

Property and equipment, net 1,420,646

Investment property, net 83,637

Intangible assets, net 176,197

Deferred tax assets 1,232

Current tax assets 9,297

Other assets 6,573,735

Non-current assets held for sale 40,296,751

Total assets 333,898,236
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Liabilities

Financial liabilities held for trading -

Financial liabilities designated at fair value through profit or 

loss 2,067,144

Deposits 53,839,129

Borrowings 28,561,063

Bonds 150,014,919

Derivative financial liabilities 4,752,838

Policy reserves -

Defined benefit liabilities 9,246

Provisions 645,329

Deferred tax liabilities 6,496,971

Current tax liabilities 316,231

Other liabilities 8,037,265

Non-current liabilities held for sale 32,999,924

Total liabilities 287,740,059

Equity

Issued capital 21,886,559

Capital surplus 758,560

Capital adjustment 278,392

Accumulated other comprehensive income 4,977,670

Retained earnings 14,090,106

Total equity attributable to equity holders of the Company 41,991,287

Non-controlling interests 4,166,890

Total equity 46,158,177

Total liabilities and equity 333,898,236

a.4.1 Capital Adequacy

As of December 31, 2021, KDB Bank’s consolidated capital ratios, as computed under the Basel III

guidelines, were maintained at a high level with a Tier 1 capital ratio of 13.73%, a Tier 2 capital ratio of 

1.15% and a total capital ratio of 14.88%. 

a.4.2 Major Funding Sources

KDB Bank funds itself through deposits, borrowings, and bonds. KDB Bank attempts to diversify funding 

sources by continuously expanding its deposit base through corporate deposits and by issuing bonds 

overseas.

As of December 31, 2021, KDB Bank’s deposits amounted to 53.8 trillion won, an increase of 14.5% from 

December 31, 2020. Borrowings stood at 28.6 trillion won, an increase of 16.7% from December 31, 2020, 

and bonds were at 150.0 trillion won, an increase of 4.7% from December 31, 2020. The majority of the 

total financing came through bond issuances and the portion of deposits remained similar to the last 
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year’s level, reflecting the goals of the amended KDB Act to strengthen the public policy financing role of 

KDB Bank and gradually reduce its retail banking services.

a.4.2.1 Liquidity Risk Management

KDB Bank defines liquidity risk as the possibility of incurring loss due to a temporary shortage in funds 

caused by a maturity mismatch or an unexpected capital outlay. Liquidity risk increases when funding 

rates rise, assets are sold below fair value, or a good investment opportunity is missed. To better manage 

liquidity risk, KDB Bank and its subsidiaries comply with the liquidity-related supervision ratios required 

by the respective supervisory authorities and calculate measurement indices such as liquidity coverage 

ratio, liquidity ratio, and liquidity gap. KDB Bank, in particular, conducts liquidity stress tests under crisistype scenarios to maintain a liquidity gap structure that is stable in diverse market conditions. Moreover, 

to prepare for unexpected liquidity problems arising from rapid changes in the market environment or in 

monetary policy, each subsidiary of KDB Bank has set up a contingency plan. The operational status of 

liquidity risk management is also regularly reported to KDB Bank’s Board of Directors.

a.4.3 Description of Derivatives and Hedging Activities

KDB Bank enters into derivatives transactions mainly to meet the needs of its clients’ hedging strategies 

or to mitigate its own risks arising from shifts in interest rates, currency values and other market variables. 

KDB Bank participates in inter-bank markets for the purpose of hedging and managing the positions 

created from internal and external transactions. To this end, KDB Bank transacts in a variety of derivative 

products including forwards, futures, options and swaps, and has a specialized organization committed to 

derivatives transactions and the risk management system.

For the purpose of hedging the exposure to the variability of fair values of funds in Korean won by changes 

in interest rates or exchange rates, KDB Bank mainly uses interest rate swaps or currency swaps. The main 

counterparties are foreign financial institutions and local banks. In addition, to hedge the exposure to the 

variability of fair values of bonds in foreign currency by changes in interest rates or foreign exchange rates, 

KDB Bank mainly uses interest rate swaps or currency rate swaps.

The use of derivatives for hedging helps minimize unplanned fluctuations in earnings, fair values of assets 

and liabilities, and cash flows caused by interest rate, foreign currency and other market value volatility. 

These derivatives are qualified as fair value hedges or cash flow hedges for accounting purposes. 

a.4.4 Memberships in Material Payment, Clearing, and Settlement Systems

KDB Bank, acting through KDB NY, is a member of certain U.S. payment, clearing and settlement systems 

that enable it to access systems necessary to provide services to its customers and clients. The following 

is a list of KDB NY’s memberships in material payment, clearing and settlement systems:

Entity Holding 

Membership Type System

KDB NY Clearing, Settlement, Payment Federal Reserve Funds Transfer Off-line System – Fedwire Funds
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Entity Holding 

Membership Type System

Communications

Society for Worldwide Interbank Financial Telecommunications 

(SWIFT)

a.5 Description of Foreign Operations

While KDB Bank does maintain foreign operations, KDB Bank’s operations and employees are primarily 

located in Korea. As a result, the vast majority of revenues, profits, assets and liabilities are related to 

KDB Bank’s domestic operations. As of December 31, 2021, KDB Bank operated ten overseas branches 

including KDB NY, as well as seven overseas subsidiaries and eight overseas representative offices. 

Domestic and overseas revenue information for the year ended December 31, 2021 and non-current 

assets information as of December 31, 2021 are as follows.

(In millions of won)

Geographic Areas Revenue Non-current Assets

Domestic 32,075,459 33,095,736 

Overseas 1,050,037 132,814 

Source: 2021 Audited Consolidated Financial Statements under K-IFRS of KDB Bank

a.6 Material Supervisory Authorities

The consolidated operations of KDB Bank, including its subsidiaries and overseas offices, are subject to 

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

KDB Bank is co-supervised by the Korean Financial Services Commission (the “FSC”), the Korean Financial 

Supervisory Service (the “FSS”), and the Bank of Korea (“BOK”). The FSC’s primary functions are 1) 

protecting the integration of Korea’s financial markets by promoting sound credit system and fair business 

practices, and 2) serving as a consolidated policy making body for all matters pertaining to supervision of 

the financial industry as a whole. The FSS’ primary functions are audit and supervision of financial 

institutions. The BOK’s primary functions are 1) issuing banknotes and coins, 2) formulating and 

implementing monetary and credit policy, 3) operation and oversight of the payment and settlement 

systems, 4) managing Korea's foreign exchange reserves and 5) supervisory functions for financial 

institutions.

KDB NY is licensed by the New York State Department of Financial Services (“NYSDFS”) and operates in 

New York, New York as a branch of a foreign banking organization supervised by both the FRB and the 

NYSDFS.
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a.7 Principal Officers

The table below lists the current members of the Board of Directors of KDB Bank as of June 27, 2022. 

Name Title 

Seoghoon Kang Chairman & Chief Executive Officer

Daehyon Choi Vice Chairman & Chief Operating Officer

Taehyun Joo Auditor

Yeongwook Kim Independent Director

Hanhong Cho Independent Director

Dongil Jung Independent Director

The table below lists the senior management of KDB Bank as of June 27, 2022. 

Name Title 

Seoghoon Kang Chairman & Chief Executive Officer

Daehyon Choi Vice Chairman & Chief Operating Officer

Taehyun Joo Auditor

Junsung Lee Executive Director

Byungchul Jung Executive Director

Sangsoo Kim Executive Director

Bockkyu Kim Executive Director

Sunkyoung Park Executive Director

Youngkyu Ahn Executive Director

Byungho Lee Executive Director

Hyungsoon Park Executive Director

Youngjin Kim Executive Director

Youngjae Lee Compliance Officer

a.8 Resolution Planning Corporate Governance Structure and Processes

KDB Bank has integrated resolution planning into its corporate governance structure and processes to 

ensure that the U.S. Resolution Plan receives appropriate oversight from designated senior management 

officials, councils and the Board of Directors. KDB Bank has developed the U.S. Resolution Plan in 

accordance with the following corporate governance structure and processes.

KDB Bank’s U.S. Resolution Plan is prepared by Resolution Plan Office (“RPO”) with assistance from the 

Resolution Plan Steering Group (“RPSG”). The plan isreviewed by both RPO and RPSG with oversight from 

the Resolution Plan Council (“RPC”). KDB Bank’s U.S. Resolution Plan, once approved by the RPC, is 

submitted to the Board of Directors for final approval. 
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The Board of Directors is the most senior governance body of KDB Bank. The Board of Directors, located 

in Seoul, Korea, is ultimately responsible for evaluating and approving KDB Bank’s U.S. Resolution Plan or 

expressly delegating such authority for evaluation and approval to an appropriate delegee.

RPC was established for the purpose of developing, executing and managing KDB Bank’s strategy and U.S. 

Resolution Plan. Its primary responsibility is overseeing the preparation and submission of the U.S. 

Resolution Plan to KDB Bank’s Board of Directors for approval. RPC includes one member of senior 

management from KDB Bank.

RPSG consists of the Working Group from KDB Bank. RPSG supports RPO in the United States by 

supplementing any additional preparation needed, providing advice on all issues relating to U.S. resolution 

planning, and approving the U.S. Resolution Plan before submission to RPC.

RPO consists of the U.S. Working Group from KDB NY. Responsibilities for the U.S. Working Group include 

day-to-day project management and functional leadership for the oversight, development, maintenance, 

implementation, filing and compliance of the U.S. Resolution Plan, as well as updating it as part of business 

as usual processes.

a.9 Material Management Information Systems

KDB Bank utilizes management information systems (“MIS”) and applications to ensure timely access to 

accurate and comprehensive data, including those for risk management, accounting, and financial and 

regulatory reporting. In preparing the U.S. Resolution Plan, KDB Bank has identified key MIS applications 

and maintains inventories of such systems and applications.

The MIS applications are primarily used to collect, retain and report information internally, as well as to 

perform functions necessary to support operations. Multiple reports are generated on a periodic basis 

for use by senior management to assess financial health, risks and operations. KDB Bank’s MIS is capable 

of collecting, maintaining, and reporting information in a timely manner to management and to regulators.

a.10 High-Level Description of Resolution Strategy

The U.S. Resolution Plan takes into consideration possible strategies for the orderly resolution of KDB

Bank’s U.S. operations under applicable resolution regimes in the event of material financial distress or 

failure. The strategies are designed to be executed within a reasonable period of time and in a manner 

that substantially mitigates the risk that the failure of the covered company would have serious adverse 

effects on financial stability in the United States.

The U.S. Resolution Plan assumes that an idiosyncratic event causes the failure of one or more major 

branches and subsidiaries of KDB Bank, leading to the material financial distress and ultimate failure of 

KDB Bank. KDB Bank’s U.S. Resolution Plan addresses how the U.S. operations of KDB Bank may undergo 

an orderly resolution without extraordinary government support in the U.S. or Korea. 

The U.S. Resolution Plan assumes that KDB NY would be seized by the Superintendent of the NYSDFS (the 

“Superintendent”) who would commence liquidation proceedings under New York Banking Law (“NYBL”). 

Because KDB NY is a New York state-licensed branch, the U.S. Resolution Plan contemplates that KDB NY 

would be subject to the insolvency and liquidation provisions for foreign bank branches under the NYBL, 

rather than the U.S. Bankruptcy Code, in the event of KDB NY’s insolvency. The NYBL generally includes a 
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ring-fencing regime that would effectively draw a fence around KDB NY and treat it as a separate entity 

from KDB Bank. Under the NYBL provisions regarding the involuntary liquidation of foreign bank branches, 

the Superintendent may seize certain U.S. assets of KDB NY if, among other things, KDB NY is in liquidation 

either in the home country or elsewhere or there is a reason to doubt that KDB NY is able or willing to pay 

the claims of its creditors. (N.Y. Banking Law, §606(4)(a).) 

The Superintendent is authorized to take possession of (1) all KDB NY assets wherever located that 

constitute part of the business of KDB NY and appear on the books as such and (2) all assets of KDB Bank 

located within New York regardless of whether they constitute part of the business of KDB NY. The 

property would be liquidated to pay creditors with permissible claims against KDB NY in accordance with 

NYBL. 

KDB Silicon Valley, which began its operations in 2021, would be liquidated in a Chapter 7 or Chapter 11 

bankruptcy or otherwise wound down and dissolved in accordance with applicable Delaware law 

requirements. KDB Silicon Valley does not currently have any material third-party creditors.